Jokes

CHULA VISTA – The city of Chula Vista has agreed to pay $20,000 in legal bills for Laurie Madigan, the assistant city manager who resigned under pressure March 9 as the city was investigating a potential conflict of interest. The city will make the payment in addition to Madigan's severance package of $155,000 and lifetime retirement benefits. The city Thursday released a statement announcing the settlement. The statement also said the City Attorney's Office recently concluded its investigation of Madigan and “found that no conflict existed.”
City officials refused Thursday to say who approved the payment for Madigan's legal bills or when it was arranged.
“The city is not making any further comments on this matter,” city spokeswoman Liz Pursell said.

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The statement was labeled a “joint statement” from the city and Madigan. The city's internal investigation of Madigan began in January. At that time, City Councilman John McCann reported to City Attorney Ann Moore that Laurie Madigan's husband, Mike Madigan, was working for Lankford & Associates, a San Diego development company that was discussing a possible project on the Chula Vista bayfront with city officials.
Laurie Madigan was responsible for processing development plans for the city's 550-acre bayfront. She didn't report her husband's work for Lankford to the city.
After McCann brought the situation to the attention of city officials, Mike Madigan stopped working for Lankford. No deal between the city and the company was ever made final.
In early February, the City Council met in closed session and discussed the failure of Laurie Madigan to report her husband's work for Lankford. The council referred the matter to interim City Manager Jim Thomson for further inquiry.
Two days later, on Feb. 8, Madigan went on sick leave. She continued to collect her full salary of $189,212 a year. Federal law makes it difficult to discipline or fire employees who are on medical leave.
While on leave, she continued teaching an upper-division course, “Politics and Policymaking in San Diego,” at the University of California San Diego.
The San Diego Union-Tribune reported on March 9 that she had been teaching while on sick leave. She resigned the same day from her city job.
In return for her resignation, Thomson authorized a severance package that keeps her on the payroll until Jan. 10, 2008, at which time she will be entitled to a state pension.
She had worked for the city four years. City employees are eligible for pension pay after five years. If Madigan retires at age 60, she will be eligible to collect $28,400 a year.
McCann's first public comments about his role in reporting Madigan's potential conflict of interest were published March 27 in The Union-Tribune.
Shortly afterward, Madigan's three attorneys contacted the city requesting more money. They cited new issues, including McCann's statements about the investigation, which they felt damaged Madigan's reputation, according to sources familiar with the negotiations.
The Union-Tribune reported Thursday that Madigan had demanded $47,000 for her legal bills, according to the sources.
Thursday afternoon, the city released the statement announcing the $20,000 settlement and the city attorney's conclusions.
“The city found that Ms. Madigan acted reasonably and that she took appropriate steps to protect the city from conflict and the appearance of conflict,” the statement reads.
The payment is “associated with fees and costs incurred in mutual and dedicated effort to finalize Ms. Madigan's separation,” according to the statement.
It says Madigan “made valuable contributions toward the advancement of major projects of importance to Chula Vista.”
“The city believes that Ms. Madigan was entitled to receive a severance package and that the severance package she received was lawful and appropriate,” it says.
Madigan's primary attorney and spokeswoman, Leslie Devaney, said Thursday, “The statement confirms and reflects what Laurie Madigan has always said and what her lawyers have opined – that she has always acted professionally and in the best interest of the city.”
Devaney added that Madigan “is hopeful that she and the city can now put this behind them and both move forward to more productive pursuits.”
The statement says both the city and Madigan will honor the confidentiality clause in her separation agreement.
Mayor Cheryl Cox, Moore, and Councilmen Jerry Rindone and Steve Castaneda did not respond to a request for comment Thursday.
Thomson, McCann and Councilman Rudy Ramirez returned calls but declined to comment.