SEQUIM — Vernon Stoner, a man whose past contained controversy that went undiscovered until recently, will not become Sequim city manager.

The City Council voted unanimously Monday night against hiring Stoner, whom they had chosen Sept. 1 from a field of four finalists for the town’s top post.

Shortly after that decision, the Peninsula Daily News learned that Stoner was the target of a sexual harassment tort claim by his executive assistant in his most recent position as chief deputy at the state Insurance Commissioner’s Office.

His assistant, Shellyne Grisham of Olympia, filed her claim May 14; Stoner was fired June 15 by Commissioner Mike Kreidler.

On Aug. 31, the state of Washington paid Grisham a $50,000 out-of-court settlement.

Now Stoner is suing the state, contending that age or race discrimination were factors in his firing.

Stoner, who is 61 and black, is seeking damages of up to $20 million.

Declines comment

The Insurance Commissioner’s Office has declined to detail the reasons for his dismissal, while Stoner has pointed out that no court has found him guilty of sexual harassment.

Stoner attended the Sequim council’s Sept. 14 meeting, during which the members had planned to sign his contract to include an annual salary of $120,000.

“I apologize for what you’ve seen in the news media,” Stoner said at that meeting.

In later interviews, he said that in 30 years working for cities and state agencies, he’s become accustomed to controversy.

On Monday afternoon, Stoner sent an e-mail to city attorney and interim city manager Craig Ritchie, saying that since he wasn’t invited to that night’s meeting, he wouldn’t be attending.

Shortly after convening, the seven City Council members went into a 15-minute closed-door executive session with Ritchie.

Ritchie recommended holding the session away from public view, citing state law that permits such sessions when they involve talks of applicants’ qualifications or “potential litigation” against the city.

“I don’t want to speculate,” Ritchie said later, but “I am aware of Mr. Stoner’s suit against the OIC [Office of the Insurance Commissioner].”

When the council emerged, Councilman Ken Hays made the motion to turn away from Stoner and reconsider other finalists for the city manager position.

“Further selection discussions,” Hays’ motion noted, are postponed until the council’s Oct. 5 meeting, expected to start at 6 p.m. in the Sequim Transit Center, 190 W. Cedar St.

Stoner, reached at his home in Olympia on Monday night, said: “I wish the council well. That’s it.”

When asked whether he’ll consider suing the city of Sequim, he said no, “not at all.”

“How are we going to proceed?” council member Susan Lorenzen asked during Monday’s meeting.

“We’re just going to be looking for more facts and information” about other finalists who are still interested in becoming Sequim’s manager, replied Mayor Laura Dubois.

Remaining candidates

After the council meeting, Ritchie said two of the other three finalists for the job have said they’re still interested.

They are Mark Gervasi, a former schoolteacher who is now the manager of Tillamook, Ore., and Steven Burkett, former manager of cities including Shoreline, Fort Collins, Colo., and Tallahassee, Fla., who is now a management consultant.

The other finalist, former deputy manager of Olympia Subir Mukerjee, withdrew from consideration.

The city of Sequim paid Waldron & Co., a Seattle search firm, $20,000 to identify and screen candidates for city manager.

After Stoner’s issues were discovered, Hays, Dubois and fellow council member Erik Erichsen expressed some disappointment with Waldron’s efforts.

But on Monday night, Dubois and Lorenzen said they have not discussed asking for any kind of refund from the firm.

“They’re still giving us very thorough information,” Dubois said.

Waldron & Co. owner Tom Waldron has said that Sequim won’t be charged anything extra for his firm’s work, “even if we have to go back out and recruit again.”

Searching since 2008

Sequim has been without a permanent chief since May 5, 2008, when a majority of council members voted to fire Bill Elliott. Elliott departed with a $152,318 severance package, and Police Chief Robert Spinks was appointed interim manager.

The council then hired consultant Lee Walton to search for permanent-manager candidates; three finalists came to town in November — and left after the council couldn’t come to a hiring agreement with its top choice.

In December, Spinks left his interim manager position to have a benign tumor removed from his auditory nerve.

Linda Herzog, former deputy manager of Mercer Island and other cities, stepped in to lead Sequim through the next nine months. Her last day was Sept. 2.

Council member Walt Schubert said he had a conversation with Herzog on Sunday in which he asked her whether she’d consider the manager job.

“Her answer was no . . . she has other plans,” Schubert said.

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Sequim-Dungeness Valley reporter Diane Urbani de la Paz can be reached at 360-681-2391 or at diane.urbani@peninsuladailynews.com