During the January 28, 2025, Ottawa County Board of Commissioner meeting (2:49:00), the board made an unusual decision to discuss a settlement negotiation of a pending lawsuit in open session. Prior to the meeting, a proposed settlement agreement regarding the pending employment termination lawsuit between former County Administrator John Gibbs, Ottawa County, and Joe Moss, was sent to each member of the board. Gibbs had been placed on administrative leave on February 22, 2024, and then his employment contract was terminated. The meeting agenda contained a motion for the board to enter closed session to discuss the proposed settlement offer, but the board voted against the motion and instead discussed the settlement proposal in open session.
Background
Gibbs was terminated based on allegations that he made sexual and defamatory comments, threats of physical harm, and ridiculed the faith of protestants. Former Board Chair Joe Moss shared a letter to Gibbs' former Attorney Noah S. Hurwitz, concerning complaints made about John Gibbs on his Facebook page February 23, 2024, which has since been taken down. Gibbs denied the allegations, filed suit, and proposed a settlement which involved him submitting a letter of resignation in exchange for $630,000.
Ottawa County commissioners hired John Gibbs in January 2023 believing he shared their vision. However, friction arose between Gibbs and the county which appeared to peak on October 25, 2023, when Gibbs was questioned during the 46.11(n) hearing to provide Health Officer Adeline Hambley a public opportunity to respond to the charges against her. Gibbs spent approximately 8 hours answering questions posed by Hambley’s attorney in which he repeatedly stated he did not remember information. Just the day before, on October 24, 2023, a lawsuit had been filed, alleging age discrimination based on actions of Gibbs against Ottawa County by Ryan Kimball, a candidate for the Administrative Assistant to the County Administrator position. Since being hired, Gibbs had significant involvement in hiring three individuals including Director of Veteran’s Affairs Jason Schenkel, former Deputy County Administrator Benjamin Wetmore, and former Assistant to the County Administrator Jordan Epperson who was hired into the position contested by Kimball.
The Ryan Kimball age discrimination case was settled with the county on September 10, 2024, for $225,000. Additionally, two of the three individuals hired by Gibbs, Wetmore and Epperson, ceased working for the county on December 31, 2024, with highly unusual separation agreements. Unusually, both individuals received severance agreements to stop working for the county on the possibility that their employment might be terminated under a new county board of commissioners. Wetmore received one year of pay ($175,000) and Epperson received a lump sum of $75,000, five months of pay ($33,974), plus insurance benefits.
Settlement Discussion of Gibbs Lawsuit
A two-thirds majority vote is required for the board to enter closed session. On January 28, 2025, when the board voted on the motion to enter closed session, commissioners Joe Moss, Allison Mediema, Sylvia Rhodea, Kendra Wenzel, and Josh Brugger voted no. Some confusion followed the vote and then Commissioner Zylstra made a motion to add an open session discussion of the lawsuit settlement to the agenda. He expressed that even though the board voted not to discuss the settlement offer in closed session, it could not be ignored. Vice-Chair Josh Brugger shared that he voted no because he favored a public discussion. Commissioner Moss explained that he voted no because he thought the settlement offer was a horrible deal for the county and wanted the Insurance Authority [county entity responsible for handling the lawsuit] to propose a better deal. Commissioners Mediema, Rhodea, and Wenzel appeared to agree with Moss.
Board Chair John Teeples cautioned the board, (2:53:15) “One of the drawbacks of having an open discussion of ongoing litigation, in a settlement discussion, is that you may limit your negotiation abilities to finish the settlement.” Teeples continued, (2:56:50) “It’s already gone through the Insurance Authority. Now we’re at the stage of the settlement that involves us.” Despite the elevated risk, commissioners Bonnema, Brugger, Jorritsma, Zylstra, Kuyers, and Teeples voted yes to discuss the settlement in open session.
Board Chair Teeples began by explaining the proposed offer. (3:23:42) “The essential terms of the deal: $190,000 payable in thirds to his attorney, to himself; one-third was going to non-economic loss, one-third for economic loss subject to taxation, one-third subject to payment to his attorney; $190,000 total, with three other essential terms; []
Ottawa County agrees to rescind his termination of employment dated February 29, 2024, and remove any reference to the termination from his employment file.
Ottawa County agrees to accept his resignation dated effective February 22, 2024, and will place Gibbs’ letter of resignation in his personnel file.
It also includes a release of all claims by him against the county, and of course no admissions of liability, which are standard terms of any type of agreement.”
During the discussion it became apparent that several commissioners believed the termination was justified, and the proposed settlement should not be considered based on principle alone. This was best illustrated by a letter read during the discussion from former Commissioner Gretchen Cosby, urging the current board to follow a righteous path. (3:28:00) “I am compelled to speak out in defense of the integrity of our county government and the importance of standing firm against baseless attacks on character and reputation. [] Integrity can be sacrificed for convenience and those who weaponize dishonesty and character assassination can ultimately potentially profit from their behavior. [] It is true that fighting this lawsuit will cost time and money but the cost of compromising the truth is far greater. The county has a strong case that can demonstrate his termination was justified. A settlement, particularly one that erases the cause for his removal, allows him to escape accountability while further burdening taxpayers who have already endured enough harm from his actions.”
Other commissioners felt the unknown financial cost to the county of continuing to litigate the claims would be too great. Commissioner Zylstra pointed out that a severance payment of $210,000 was required if Gibbs would have been terminated without cause, indicating that a settlement of $190,000 was a good deal. Additionally, Zylstra felt accusations had been made, but cause was not sufficiently documented. He stated (3:31:30) “Back in February, I did vote no on terminating Mr. Gibbs. [] I didn’t think that the board had put together a case against Mr. Gibbs.”
Board Chair Teeples reiterated (3:33:00), “Under the employment contract, if he is discharged without cause, he would be entitled to $210,000. If he was discharged with cause, which is what the allegation is here, he would be getting $0.” Teeples later stated, (3:42:00) “In my opinion, this case has not been documented they way it should have been to support a defense of a proper discharge. [] This is a way to cut loses and move ahead with the county.” Teeples also added (3:55:30), “Our litigation attorney is recommending this agreement.”
Commissioner Jorritsma expressed (3:49:50) “To me it’s pretty simple. We either have a huge risk at gambling taxpayer money in litigation or we settle, relative to alternatives, with a low amount of money.”
Unfortunately, the discussion became lively, as in addition to settling the dispute, some commissioners were interested in finger pointing and character assassination. Near the beginning of the open discussion Commissioner Bonnema raised his voice. (3:26:07) “Joe, we’re in this bad deal because of you. How you hired John Gibbs and also how you fired John Gibbs. We’re in this situation because of you.”
Vice-Chair Brugger later expanded with similar sentiments. (3:39:00), “Mistakes were made when hiring Gibbs. The individuals who made those mistakes; there are four of them in this room. [] The county paid a price. The employees paid a price. [] When you make a mistake, [] you own it. You apologize for it, and you offer to fix it. I appreciate that commissioners here don’t feel they made a mistake when firing him. I’ve heard them all acknowledge they made a mistake when hiring him, but I have not yet heard an apology to the people of Ottawa County from those commissioners. Absent that apology and the offer that we have on hand here, I’m in favor of [] settling.”
Commissioner Mediema reminded everyone that (3:27:14) “Each person is responsible for their own behavior.”
Referring to Brugger’s statement, Commissioner Moss pointed out, (3:43:10) “He tried to assign blame. [] This process of termination [] There were closed sessions. There were confidential memos. There was information shared with the board. There were complaints made by employees.” Commissioner Moss explained that it was an effort by the board, which was guided by council, and followed a process.
Ultimately, after the discussion the board voted to move forward with the proposed settlement offer.
Yes: Jorritsma, Bonnema, Brugger, Teeples, Kuyers, Zylstra, and Barry
No: Moss, Mediema, Rhodea, and Wenzel
Now the decision will be up to former County Administrator John Gibbs, and the board will have to wait and see if he agrees to the offer.