Jerry Gillham, 54, gave his resignation effective Thursday, according to interim City Manager Kevin Burke.
Burke said the Lakeport City Council accepted Gillham's resignation, which cited his extended and indefinite period of military leave of absence. The city extended its gratitude to Gillham for his service.
The city is set to begin recruiting for the position immediately, Burke said.
Gillham told Lake County News Thursday that the decision “wasn't necessarily an easy thing.”
He added, “In the long run, it's the best thing for the city.”
Lake County News was unable to reach any of the city's five council members for comment Thursday evening.
A chief warrant officer in the Oregon National Guard, Gillham was sent on his second deployment to Iraq in August of 2008, with the council appointing Burke, chief of Lakeport Police, to fill in for Gillham during his absence.
While on deployment Gillham suffered a minor stroke and back injury last fall, and was recalled from Iraq and stationed at Ft. Lewis, Wash., where he said he is assigned to active duty while recovering from his injuries.
After he had been placed on leave, Gillham paid a visit to Lakeport, sitting in on part of a council meeting on March 24.
Burke said the city had anticipated that Gillham would return to work this past spring. However, Gillham's recovery process has been slower than expected.
Gillham said he's been through numerous medical procedures – he's due for another one Friday – and during one surgery doctors discovered he had a hairline fracture and three ruptured disks in his back.
“The consequences of that have been longterm rehabilitation that even I didn't anticipate,” he said.
While Gillham said he feels fine, he's lost the ability for some activities, such as running or lifting heavy objects, and is expected to have some level of permanent pain due to his injuries and the resulting surgeries.
His doctors told him he would be off until at least next March, which they said was an arbitrary date.
While the law requires the city to keep Gillham's job open for five years because of his military service, he said a city can't go that long without a manager, and that it wouldn't be fair to expect it.
“When I learned that I was going to be kept on active duty longer I came down and met with the council,” he said, wanting to find a “win-win scenario.”
Gillham was hired in May 2007 at an annual salary of $95,000 plus benefits and a $5,000 relocation package. The council approved a contract with him that expired Sept. 30, 2010. The contract called for six months' notice or compensation, totaling about $47,500, if the city decided to end Gillham's contract.
The council offered Gillham a $34,805 severance package to cover the remainder of his contract time, which includes a $20,000 cash payment and a GMC Envoy SUV that Gillham was allowed to purchase for his personal use while employed by the city, Burke said.
Burke said the vehicle is valued at $14,805 and was purchased used. The SUV was purchased in December 2007 for $21,000, said city Finance Director Janet Tavernier.
The severance package is less than the stated amount that would normally be owed in Mr. Gillham’s existing contract, said Burke. The severance amount was agreed to after negotiations, and is based upon what the city can afford and Gillham’s interest in not placing the city in a worsened economic position, Burke said.
Burke said the city plans to begin an immediate effort to fill Gillham's position.
How Gillham came to Lakeport
Gillham is Lakeport's second city manager. He succeeded Randy Johnsen, Lakeport's first city manager, who held the post from 2001 to 2006.
Before coming to California, Gillham had held city manager posts around Oregon, specifically in Baker City, Madras, Nyssa and Scappoose, and was the Gresham Chamber of Commerce's chief executive officer.
His most recent job before taking the Lakeport post was as assistant city manager for the central Oregon city of Prineville. Gillham had resigned from that job in February of 2007 after five months, citing issues including “my recent military activation,” according to a copy of his resignation letter obtained by Lake County News.
However, his resignation was linked to a controversy that had arisen involving his dismissal of the city's public works director James Mole Sr., and his administrative assistant, Samanthia Waltjen, who filed a lawsuit against the city of Prineville in April 2007.
The city reportedly later settled with Mole for an undisclosed amount. Then, in July 2008 Mole was charged with allegedly stealing fuel in the amount of $14,000 from Prineville even after he was no longer employed by the city.
When Lakeport searched for its first city manager in 2001, City Attorney Steve Brookes said Ken Blackmun, Santa Rosa's retired city manager, assisted Lakeport with screening an estimated 80 candidates for the job.
After Johnsen left as Lakeport's city manager in June of 2006, the city hired the Roseville-based recruiting firm Bob Murray & Associates to conduct a search for Johnsen's successor, Brookes said.
Tavernier said the city paid the firm $22,200 for its services.
Brookes said that recruitment's top candidate was Arizona resident Boyd Kramer, who eventually decided to turn down the job offer.
The recruitment firm then proposed Gillham, who hadn't been part of the job search, but had just come back from Iraq and was considering working for the government in a civilian capacity in Washington, DC, said Brookes.
“He came down and interviewed and the City Council was impressed by the interview,” Brookes said of Gillham.
Gillham's initial contract built in a six-month probation period, said Brookes. “He was very confident that he would be able to do a good job and didn't have any concerns about an initial probational period.”
Once that probation period ended, it rolled into the three-year contract set to expire in September 2010, Brookes said. That contract also included the six-month severance notice or pay clause, which is usually based on industry standards.
“City managers usually can find other work but it takes some time to find other work,” Brookes said.
After Gillham came on, he oversaw a reorganization of city departments and staff and led work on a city vision plan.
However, his tenure also was marked by increased tensions with the county over several issues, including an unpaid animal control bill of more than $14,000, as Lake County News reported last year.
In an April 2008 Board of Supervisors meeting Supervisor Rob Brown criticized Gillham for a “disconnect” in his interaction with county officials, which came to a head over the animal control situation.
Disagreements appeared still in force at a joint city-county meeting two months later, with Gillham telling county officials that they owed the city $43,000 for street improvements around the city's library on N. High Street.
Brown said Thursday that the city and county have since worked things out and are moving in a positive direction.
County Administrative Officer Kelly Cox agreed. “We've had a very good relationship with the city and hope that continues in the future,” said Cox, who credited Burke for his work during Gillham's absence. Cox added that he wished the city success in recruiting its new manager.
Gillham, who brought to his job an animated personality, appeared to enjoy his time in Lakeport, and even got married in a ceremony in the council chambers in December 2007.
On Thursday Gillham praised city staff, saying Lakeport has a great team of people who work together for the good of the city. Even when the city was in a budget crunch, he said they weren't fighting about money or resources but trying to find solutions for everyone.
“That is a tribute to the staff,” he said.
He said they shared his belief in open, transparent government and including the community in the decisions city officials make.
Brookes said he and Burke will begin as lead negotiators in the new city manager recruitment, but Burke will eventually have to take a less active role. That's because, as police chief, he'll be subordinate to the new city manager, while Brookes is directly responsible to the city council itself.
Just what kind of a package the city will offer a new manager isn't yet clear, and Brookes said no salary has been determined. A lot of it will depend on what other city governments are doing.
“Local governments are being stressed by the state's issues and the general economic challenges of the time,” Brookes said.
What's next for Gillham is that he wants to finish his recovery and eventually reenter the job market.
“It's really been a difficult year for me and my family,” he said, but added, “Everything happens for a reason.”
E-mail Elizabeth Larson at
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