City, McNannay reach settlement; chief resigns

Garth Meyer, Gazette Reporter | Mar 26, 20200

The City of Colfax and Police Chief Rick McNannay reached a settlement on his pending lawsuit March 16, which included an $85,000 payment from city funds and the chief’s resignation.

“He resigned and retired,” said Mayor Jim Retzer.

The lawsuit was for $5.2 million in damages related to wrongful termination. A separate claim was for $250,000 for alleged damages to McNannay’s wife.

The $85,000 represents money paid specifically from the City of Colfax.

“I am not at liberty to say anything beyond that,” said Retzer, who started as mayor after McNannay’s firing, reinstatement and lawsuit. “I can’t speak for an insurance company or other entities that may be involved in that.”

Was the resignation part of the settlement?

“I’m not really sure on all of that. That’s his choice,” said Retzer.

Bob Dunn, one of the attorneys from Dunn & Black in Spokane, which represented McNannay in the matter, said he thought the total was confidential – and “a lot higher” than $85,000.

“The resignation was part of it,” said Dunn.

So now it is over with?

“The resignation and the monies paid completely resolves the issue,” Dunn said.

Negotiations had been ongoing since last year.

For their part, the Colfax city council previously authorized a settlement payment of up to $85,000.

“It was kind of a cloud hanging over the city,” Retzer said. “It’s a fresh start for everyone. We can only go up from here.”

McNannay was fired by previous mayor Todd Vanek in January 2019. McNannay appealed and the Colfax Civil Service Commission ruled in his favor six months later.

McNannay then returned to work as Colfax chief, with the city ordered to pay back time to last January.

Civil Service board members ruled that pre-hearing filings and motions showed McNannay did not commit perjury and was not dishonest when he hired officers without following state requirements, which had been updated.

Before the civil service ruling, McNannay’s attorneys announced the civil suit against the city for damages allegedly sustained by McNannay and his wife from the erroneous firing.