After decades of relative stability at the city manager post, the city of Bend has seen two city managers depart in less than three years. And the bill is adding up to more than $260,000.

City records show that in 2001 Bend city councilors paid more than $158,000 to recruit a new city manager and honor the contract of outgoing manager Larry Patterson.

In some respects, the tab is still running.

Patterson’s replacement, David Hales, resigned last week citing ”irreconcilable differences” with city councilors as the reason for his unexpected departure.

To head off any employment-related legal claims, the city council agreed to pay Hales $105,000. Under the settlement agreement that the council approved unanimously last Wednesday, the city will also allow Hales to cash in unused sick leave through the end of the year.

That brings the total bill for expenses related to turnover at the city managers office to more than $260,000 in three years.

”My initial reaction is: What a shame. What an awful shame,” said City Councilor Dave Malkin.

And the bill is likely only to rise.

Springfield attorney Robert Franz, who represented the city in settlement negotiations with Hales, has yet to be paid. The city is also waiting on a tab for a recent evaluation of Hales’ job performance conducted by Greycoast, a consulting firm based in Sisters.

Whether that review should be considered one of the expenses related to Hales’ departure is up for debate.

City councilors typically review job performance for the top manager on an annual basis. But in this case they sought help from outside using a new review process to evaluate Hales. Sometimes called a 360-degree review, the evaluation used input from city councilors, staff and members of the public to look at Hales’ performance. Under the terms of the settlement agreement with Hales, the city council has agreed to seal the results of that review.

While some critics may view the expenses related to the relatively recent turmoil as a waste of dollars, others, such as Councilor John Hummel, said that there may actually be some savings hidden in the red ink.

Hales, for instance, worked the past two years without an assistant manager, a departure from the previous city administration.

”I think you have to look a little below the numbers,” said Hummel.

”As crazy as it sounds, there might be a cost savings.”

Of course, those savings are offset in part by the costs of carrying Patterson’s salary and benefits for six months, a little more than $93,000, city records show.

It could have been significantly more.

Patterson said he was due a full year’s salary if he didn’t find another job, which he ultimately did in Weatherford, Texas.

”I tried to get a job as fast as I could,” said Patterson in an interview Monday afternoon. ”I thought it was the right thing to do for the city and the residents.”

As for the current situation, Hummel said the city is incurring no additional costs at present because finance director Jim Krueger is filling in as city manager, much as former assistant city manager Ron Garzini did after Patterson’s departure.

Councilor and former mayor, Bill Friedman, also believes that adding up the cost related to the turnover doesn’t tell the whole story.

”One way a person could look at this is we’ve gone through two city managers in three years and another way to look at it is we’ve gone through three city managers in 20 years,” said Friedman, who runs an accounting service Bend.

It’s not clear how much more the city will pay to fill the city manager position. But if the past is any indication, the $260,000-plus tab could reach $300,000 before the matter is settled.

City records show the council paid more than $37,000 just to find Hales. That total includes roughly $25,000 to Par Research Group, the search consultant that worked with the city on the job search.

The city paid about another $12,000 in job advertisement fees, travel expenses for candidates, including $2,431 for a candidate reception at Shilo Inn in August 2001. Janice Grady, the city’s human resources director, said guests at the event included five finalists for the position, the city council, members of citizen advisory committee and senior department managers at the city. Add to that another $27,682 that the city paid to Hales in travel and moving related expenses, including a check for $6,000 to reimburse Hales for the costs related to the sale of his home in Kannapolis, N.C.

Together, that’s a little more than $65,000 in expenses related just to the recruitment and relocation of a new city manager.

Just what kind of benefits the city will provide to its next manager is an open question. But Friedman said it would likely be difficult for the city to attract qualified candidates if they didn’t offer a competitive benefits package, including a severance agreement on par with other cities.

”In some respects, it’s like pro sports,” said Friedman. ”You can complain all you want about contract amounts, but if you want to get the star player, you have to pay.”

There may be ways to cut down on some costs.

Hummel, for example, said he thinks it is unnecessary to employ a search firm this time around. He’d like to use the city’s in-house resources to advertise the job.

When that hiring process starts, it’s important the city be open about the challenges it has had retaining a manager and the issues facing the city, said Malkin.

It’s also important, said Malkin, for the public to understand that the problems related to turnover at the top administrative post go beyond the council.

Voters, he said, have an obligation to provide some political stability on the council, if the city is to avoid similar problems in the future. ”We have such well-educated people by in large. We have people that have traveled all over the world with wide experiences. It’s really important that translates into a stable political climate,” said Malkin, referring to Bend residents.

Eric Flowers can be reached at 541-504-2336 or eflowers@bendbulletin.com.