Rohnert Park Finance Director May be Getting 'Forced Out'

Sandy Lipitz, Rohnert Park's director of finance and administrative services, is concerned City Manager Gabe Gonzalez is "forcing her out of a job," according to her attorney, Scott Steever, whom she hired early this month after she received what Steever called a "bitter email from Gabe," scrutinizing her job performance.

In the email sent June 28 at 9:50 p.m., obtained by Rohnert Park Patch Thursday afternoon, Gonzalez said: "Over the past eight months, I have discussed with you my significant concerns with your performance ... the city needs to be able to rely on the budget information and analysis you provide, and has been unable to do so ... you have made a number of significant errors in recent months ..."

According to Steever, Lipitz and Gonzalez discussed June 22 a "golden handshake," or an early retirement deal, but nothing was ever formally agreed upon and since, the city manager has hired an outside consultant to review Lipitz's work record. She has been with the city since 1990.

Lipitz retained her attorney, Steever, shortly after Gonzalez's email. 

"Gabe hired someone from outside to go through every aspect of Sandy's work, I believe, to find something wrong — anything," Steever said. "I have her records in front of me, and they're exemplary."

According to the city's website, Lipitz: 

• Provides financial information and advice to City Council and staff.
• Prepares the city's annual budget.
• Prepares the city's audited financial statements.
• Invests idle city funds.
• Monitors collection of revenue.
• Monitors expenditure of funds.
• Administers self-insured employee benefit programs.

Steever said some of her job duties have already been stripped, including purchasing. 

"Gabe has formed a working group to review and take over the organization of purchasing functions in the city of Rohnert Park," Steever said.

According to another email obtained by Rohnert Park Patch, Gonzalez said "it would be helpful if [the outside auditor] provided his thoughts on a purchasing structure for a city of our size ... where there are cash transactions." 

Some of those areas include a deeper look at city pools, the Callinan Sports and Fitness Center and the Rohnert Park Animal Shelter.

"Sandy feels she's been targeted by Gabriel, and her job is at risk," Steever said.

In Rohnert Park's 2011-2012 budget, which was recently passed, Gonzalez scrutinized the city's handling of finances in the past. 

He said in a memo also dated June 28 that the city's been operating under bad financial practices, which coupled with the collapse of the housing market, the onset of the Great Recession, state takeaways and a "dramatic" reduction in sales tax and other revenues, has mushroomed Rohnert Park's severe structural deficit — for infrastructure upkeep, vehicle replacement, water and sewer costs, retiree medical and accrued leave for city employees.

Gonzalez said in the memo that Rohnert Park developed a "bad habit of living beyond its means." For example, in the past, the city sold off land to cover annual operating expenses, "failed to engage in long-term financial planning" and said Gonzalez, a "substantial part of the problem is that we ... made major commitments to our employees without setting up a funding mechanism to cover those commitments."

However, former interim City Manager John Dunn who was in charge of economic development citywide, called Lipitz's work "outstanding" in a memo dated Aug. 4, 2010.

"Sandy would prefer to stay, but she's willing to work with Gabe on a retirement package," Steever said. "But he's already taking away job responsibilities and scrutinizing her for her work; I think a good word is being 'forced' out."

Gonzalez declined to comment on the issue, noting ongoing union negotiations. Steever said he's currently working with City Attorney Michelle Kenyon on the personnel issue. Stay tuned to Rohnert Park Patch for updates. 

Editor's note: Since Lipitz has only been with the city 21 years, she wouldn't be eligible for her full pension package — 75 percent of her pay at age 55. According to the city budget, Lipitz makes between $112,200 and $136,368 annually. She'd have to be here four more years to get her full pension.

Scott Steever is an attorney with the Santa Rosa-based law firm Lanahan Steever & Anderson LLP.