DES MOINES, Iowa — State legislators held a government oversight hearing in Des Moines Wednesday morning concerning three settlement agreements the City of Davenport made with former employees, paying out almost $2 million.
The hearing comes after two Davenport residents filed lawsuits against the City, claiming city leaders violated Iowa's open records law by keeping the settlement process a secret.
"Something doesn't smell right here ladies and gentleman," Michael Meloy said during the hearing. Meloy is the attorney for one of the residents suing the City, Dr. Allen Diercks. "Why is the city fighting so hard to keep these matters from the public eye?" Meloy is requesting an investigation be done by the Iowa Attorney General's Office if the committee agrees.
One of the separation agreements in question was with former City Administrator Corri Spiegel following her departure from the role on Nov. 16. In a Nov. 22 news release from the City containing Spiegel's separation agreement, it was announced that the city would be paying Spiegel a lump sum payment totaling $1.6 million for "emotional pain and suffering." The central piece of information the City is withholding from those who have submitted FOIA requests is Spiegel's demand letter to the City.
"What was it in that letter that led the City of Davenport to spend $1.6 million to keep the city administrator content and agree not to bring a lawsuit against the City?" Randy Evans, director of the Iowa Freedom of Information Council, said. Evans also testified during Wednesday's hearing, adding he has never seen anything quite like this case.
"I have never seen in that 50-year time, an example as egregious as that involving the Davenport City Council and these secret settlements that were kept from the voters of Davenport in the weeks leading up to the election," Evans said.
Separately, Iowa State Auditor Rob Sand is also investigating the payouts. According to Sand, the City of Davenport is suing his office to block access to recordings of several closed meetings.
“How tax dollars are spent shouldn’t be a secretive process. That only creates mistrust in elected officials,” Sand said. “The people of Davenport deserve transparency and are legally entitled to know how and why city leaders agreed to these payouts.”
The City of Davenport filed a motion to block the auditor from listening to recordings of the closed meetings after Sand subpoenaed for them in February, court documents show.
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