'Uncomfortable situation' with Arroyo Grande city officials prompts investigation

A recent investigation by Arroyo Grande’s deputy city attorney has concluded that no city personnel rules were violated in a July incident involving the city manager and the community development director.

Attorney Michael M. McMahon started the investigation at the City Council’s request four days after the husband of Community Development Director Teresa McClish called police at 11 p.m. July 3, when McClish failed to come home soon after an evening event in the Village.

Five police officers responded and found McClish safe inside City Hall with City Manager Steve Adams, who officers said appeared disheveled.

However, none of the officers saw anything improper, said McMahon, an attorney in the law office of Carmel & Naccasha, which serves as Arroyo Grande’s legal counsel.

McMahon estimated the cost of his investigation at $1,254. He interviewed the officers who responded to the call, as well as Adams and McClish.

“We decided, based on my discussions with everyone involved, there was nothing indicating there was any violation of city rule, ordinance, law or anything like that,” McMahon said this week.

City personnel regulations include a section on sexual harassment and another on “conflicting relationships,” that would cover any relationship between a supervisor and a subordinate.

“The determination was made that there was nothing that indicated a need for formal investigation” by an outside agency or attorney, McMahon added.

Mayor Tony Ferrara said council members received a report on the incident, but he wouldn’t comment on whether any disciplinary action was taken.

“We did not let it go,” he said but declined to elaborate.

In a statement Thursday, Adams accepted responsibility for any negative reflection the incident has had on the city and said he recognized the situation “resulted in an appearance that could be easily misinterpreted.”

“However,” he wrote, “claims that have been published by another news source that we were found unclothed and involved in inappropriate sexual behavior are false, hurtful and have caused great pain for us and our families.”

Adams said he and McClish have known each other about 14 years; he described them as friends.

McClish said only that she agreed with the results of the investigation, “that they didn’t see anything amiss because there was nothing amiss there.”

When McClish’s husband called police at 11 p.m., he asked them to check the City Hall parking lot to see whether his wife’s vehicle was still there, according to an incident report of the call.

McClish had called her husband an hour before to say she was leaving work, but she had not arrived home. McMahon said police were concerned about her health; they were told she has a heart pacemaker.

When four officers arrived, they found her car with her purse and cellphone inside. City Hall appeared dark, the incident report states, and while officers were waiting for the building to be unlocked, they also checked local bar Ralph & Duane’s. Police Cmdr. Kevin McBride, who has keys to the building, also responded.

When asked why five police officers responded to a call, McBride said it was an appropriate number because officers didn’t know whether they were dealing with a medical emergency or a possible crime.

“If we’re going to clear a building, if everyone is available, we’re going to use everyone,” he said.

When officers entered the building, they found Adams, who “was described as looking somewhat disheveled,” McMahon said. “Some described his shirt as being untucked or partially untucked.”

In response, Adams said he had changed into casual clothes before going out that evening. His office light was on, he said, and both he and McClish were startled by the officers’ arrival.

Three of the five officers saw McClish; McMahon was told that she was either sitting, or standing, in Adams’ office. The officers described it as an uncomfortable situation.

“It was never reported to me that they were in an intimate situation,” McBride said.

McMahon said that once officers determined that McClish was not having a medical emergency, they left and did not file a police report.

Adams and McClish told McMahon they had gone to a grand opening for Robert’s Restaurant and Wine Bar, where they had some wine, and then went to Rooster Creek Tavern to have another glass of wine and discuss some city-related business.

They went back to City Hall, and McClish left her cellphone charging in her car.

“They told me that they were sitting in his office, talking and killing time to make sure they were OK to drive,” McMahon said.

This story was originally published August 21, 2014 at 6:33 PM with the headline "'Uncomfortable situation' with Arroyo Grande city officials prompts investigation."