Salem Council President Linda Nishioka felt so misled by Mayor Julie Hoy over the city manager’s exit that she considered suing her, newly-released public records show. Nishioka sought advice from some of her fellow councilors on how to do that, according to the documents. The startling poss ibility emerged as councilors reacted to learning in February that then-City Manager Keith Stahley was resigning. City officials have issued varying accounts of what triggered his departure, which cost the city $256,000 in severance pay, close to a full year of Stahley’s $270,000 salary.  A fuller account of what led to his resignation and the ensuing turmoil among city leaders emerges from the emails, text messages and other records from the time released to Salem Reporter. They were provided in response to a public records request. The documents provide an unprecedented look behind the scenes of city politics. They show councilors confused about why Stahley was quitting – and whether he had been pressured to do so. Hoy has never commented publicly about her role in that departure, but records indicate the council’s president put the blame squarely at her feet. Hoy did not respond to an emailed request for comment from Salem Reporter. Another councilor, Micki Varney, proposed an outside investigation to determine the sequence of events that led to Stahley’s abrupt departure, the records show. One councilor advised her such a push would only worsen matters as the city tried to enlist community support for a tax increase. On Sunday, Feb. 9, Stahley submitted his resignation letter and told City Attorney Dan Atchison by email that he would be willing to come back to work if councilors had a change of heart, the records show.  Stahley cleaned out his office on Monday, Feb. 10, and later that evening Salem city councilors voted unanimously to accept his resignation.  Stahley’s resignation letter was released to the public the next day. In it Stahley said Nishioka told him she represented the mayor and a majority of the city council and that she requested his resignation. The city issued a statement on Feb. 13 saying Nishioka asked Stahley to resign with the “understanding” from Hoy that she was acting on behalf of the council.  The city then reversed course and challenged Stahley’s account of events in a release on Feb. 15. This time, the city indicated Stahley used language in his letter intended to ensure he could get the severance pay. The city said Stahley used specific language inconsistent with Nishioka’s actual words.  Nishioka then released a statement on Feb. 16 and said when she met with Stahley on Feb. 7 she never asked him to resign and did not tell him she represented the mayor and the majority of council.  In the chaotic aftermath of Stahley’s resignation, city councilors discussed over text messages the possibility of seeking an investigation into the events, and questioned legal advice from Atchison, the records showed. According to Nishioka’s text messages, Atchison told her that any efforts she undertook to confirm with her colleagues what Hoy led her to believe would be unethical, the records show.  Nishioka advised some of her colleagues on council and in the city over email and text message that she felt “pushed,” “used,” “misguided,” and “gaslit” by Hoy.  City councilors also expressed in text messages feeling blindsided by the development, the records show.   They reveal that councilors either felt cut out from the decision-making process or expressed concern over how Stahley’s ouster unfolded.  Stahley’s resignation came one month after his leadership was criticized in a performance audit by consultant firm Moss Adams.  Hoy referred to the report ahead of the city council vote to accept Stahley’s resignation.  Nishioka provided a statement to Salem Reporter in response to the disclosure of her records.    “In a moment of frustration, I made comments that were inappropriate and did not reflect my true intentions,” Nishioka told Salem Reporter. “I regret the words I spoke or wrote in anger and am committed to moving forward with sincerity and respect.” The records, however, provide the most detailed account of steps leading to Stahley’s resignation. Stahley offers to rescind his resignation Nishioka explained in her Feb. 16 statement that she met privately with Stahley on Friday, Feb. 7 to alert him that Hoy and a majority of city councilors wanted him to resign. It was after that meeting that Stahley decided to step down from his post.  At 7:48 p.m. that evening, Varney texted Stahley to ask if he wished to talk. The timing of her contact indicates she was aware of what was brewing.  Stahley responded that he wasn’t ready. “I can certainly understand,” Varney said. “This has all caught me off guard and I am processing as well. Just wanted to let you know that I am a neutral uninformed person very open to hearing your perspective.”  Screenshot of text messages between former Salem City Manager Keith Stahley and City Councilor Micki Varney on Friday, Feb. 7. By Saturday, Stahley was spreading the word of his impending departure.  “By the way, I spoke to Linda (Nishioka) about my status. Looks like I’m on my way out,” Stahley texted City Councilor Vanessa Nordyke at 4:02 p.m. “I’ve enjoyed working with you.”  Screenshot of text messages between former Salem City Manager Keith Stahley and City Councilor Vanessa Nordyke on Saturday, Feb. 8, and Monday, Feb. 10. On Sunday at 8:30 a.m., Stahley was drafting his resignation, according to an email he sent to Nishioka.  Stahley sent his final resignation by email to Atchison at 4:50 p.m. Sunday. “While it is by no means my expectation, should council change their mind on Monday evening, I will be happy to rescind my resignation and return to work,” he wrote the city attorney. There is no record of a response from Atchison. An email sent from Keith Stahley to City Attorney Dan Atchison on Sunday, Feb. 9, 2025. ‘The timing couldn’t be worse’    In a text sent at 8:04 a.m. Monday, Nordyke messaged Nishoka her displeasure at being cut out of the loop.  “Why didn’t you ask me for my position on Keith,” Nordyke texted Nishoka. “This is a huge decision, and I thought we had agreed that we would talk to each other about things like this.”  Nishioka texted back that she decided to go to Stahley with the news on Friday to get to him before Hoy could “make the ask.”  “Because Julie pushed me!” Nishioka texted Nordyke. “I was told by legal I could not check “votes” but I figured you did not agree…We can change this decision.”  Nordyke texted in response that there should have been an executive session to discuss the matter as a group and confirmed that she did not support ousting Stahley.  “I’ve been so surprised by this decision,” Nordyke said. “I understand there were performance concerns, but no effort was made to remediate or even allow the audit recommendations to be implemented. The timing again, couldn’t be worse.”  Text messages between Council President Linda Nishioka and Councilor Vanessa Nordyke on Monday, Feb. 10. The city finance committee, which includes Nishioka and Hoy, was due to discuss the management audit in an upcoming meeting.  By then, the city council was on its way to putting a tax measure before voters in May to raise more money for city services. Varney’s plans to hold Hoy accountable There was still no official announcement of Stahley’s resignation when Salem Reporter at 12:31 p.m. Monday published a story about that development. Just three minutes later, Nishioka messaged Varney via text that Stahley had told her he had made up his mind to leave his post.  Varney responded that it appeared there was no going back on Stahley’s departure. “But I can certainly hold (Julie) accountable for being a leader and proceeding in a manner that has put the (livability) levy in jeopardy along with the affected city employees’ jobs if it does not pass,” Varney texted.  “I am so angry at what she (Hoy) has done and the position that she has put us in,” Varney said.  Text messages between Council President Linda Nishioka and City Councilor Micki Varney on Monday, Feb. 10. Varney texted Nishioka saying that a better way of going about it would have been putting Stahley on administrative leave while the audit findings were investigated. A text from Council President Linda Nishioka to Councilor Micki Varney on Monday, Feb. 10. In another text conversation between Varney and Nishioka, the two councilors discussed the idea of suing Hoy and putting Atchison on administrative leave.  Nishioka texted Varney that she hoped to keep the focus on Hoy.  “I understand that, but I’m also questioning Dan’s (Atchison’s) guidance,” Varney said.  “So am I,” Nishioka replied.  Text messages between Council President Linda Nishioka and Council Micki Varney. Precise date of the conversation is unclear. In another text conversation between the two, Varney revealed how some of her colleagues on the council reacted to the developments.  “Deanna (Gwyn) called me this morning as I was headed to the office. She too was totally caught off guard regarding the weekend decision and is upset about what went down,” Varney said. “Apparently, when Julie talked to her a week ago Julie told her that “the majority of council agreed…..” and she believed it and went along with it.” She said she “got the same feedback” from City Councilor Shane Matthews, she wrote, noting he was “blown away” by the resignation and wondered “what the hell happened.” Text messages between Council President Linda Nishioka and Council Micki Varney. The precise date of the conversation is unclear. Varney, Nishioka discuss third-party investigation  At 12:22 p.m. on Monday, Courtney Knox Busch, the city’s strategic initiatives manager, confirmed Stahley’s departure to Salem Reporter in an email.  Then, at 1:13 p.m. Knox Busch alerted all city employees to the unfolding events. “First, on behalf of the City’s Executive Leadership Team, we want to apologize for the way you are hearing about this,” Knox Busch wrote. She told the employees the city would issue a formal statement – after the councilors that night formally accepted the resignation. An email sent out to city employees by Courtney Knox Busch on Monday, Feb. 10. The councilors met first that evening in executive, or closed, session and then voted in open session on the resignation. Councilors offered no information to the public on why such a decision was being made all of a sudden other than alluding to issues with Stahley’s leadership.  After the city council meeting that night, Varney and Nishioka texted each other.  “I hope you can accept that what happened is not your fault,” Varney told Nishioka. “Julie used you to convey her message. That became very evident to me when she shifted the blame onto you during executive session…We need to take action so she is held accountable.”  Nishioka’s response indicated the situation was taking its toll.  “I am raw too and so used, along with gaslit,” Nishioka said. “I hate feeling this way.”  Text messages between Council President Linda Nishioka and Micki Varney on Monday, Feb. 10. ‘Red alert for the City of Salem’  Early the next morning, at 1:39 a.m., Paige Barton, chair of the Marion County Democrats, reached out to Nishioka in an email with concern following Stahley’s resignation.  She said it was hard to believe that Stahley would decide to step away on his own, and that she was concerned that he was asked to do so without the support of the majority of council. “This imperils the city’s administrative leadership and will compound legitimate workload issues in our city’s business,” Barton said. “I’ve never heard of a resignation like this, let alone of the highest ranking city official…The abrupt nature of this says a lot. This is genuinely a red alert for the City of Salem.”  At 6:39 a.m., Nishioka texted Nordyke and asked for advice on how to file a lawsuit against Hoy. “File a lawsuit? What for? She didn’t break the law. And you’re the one who told Keith to resign,” Nordyke responded later that morning. “You should have called for an executive session where we could discuss this as a group. You have no legal basis to sue her” She added, “We honestly do not need this kind of distraction right now.” Text messages between Council President Linda Nishioka and Councilor Vanessa Nordyke on from Tuesday, Feb. 11. Varney floats unpublished letter calling for answers  Varney subsequently circulated a draft of a statement she proposed would represent all the councilors. She sent it to Nishioka and City Councilor Paul Tigan in the morning on Feb. 12 – three days after the resignation. In her draft, Varney challenged media accounts of the resignation and saw the statement as a way to set the record straight. “We are all confused about what really happened over the past few days,” Varney wrote in the letter. “What we do not believe is that removing a competent, if not visionary, chief administrator during the beginning of the budget process was a rational, reasonable, or responsible action. We do not believe this resignation was harmonious; we have grave concerns over the methodology and the reasons behind this leadership change.”  In the letter, Varney proposed that the council call for a third-party investigation into the matter.  “The media reported a version of what happened that may not be the entire story. Media reports suggest the city manager was asked for his resignation by a city councilor. It is apparent the city manager accepted that request from a representative of the whole (or at least a majority) of the council,” Varney wrote. Tigan opposed the letter.  “This is too much,” he said in a text message. “It will only dig us in a deeper hole. Also, if we undercut the premise of Keith’s resignation (that he was informed that a majority of the council sought his resignation), I’m afraid we could undercut his ability to receive his severance. As I stated at the council meeting, that is important to me to ensure Keith is kept whole under his employment contract.” Varney’s letter never advanced.  A draft letter sent by Varney to Nishioka and City Councilor Paul Tigan on Wednesday, Feb. 12. Reporters Abbey McDonald, Madeleine Moore and Ardeshir Tabrizian contributed reporting. Contact reporter Joe Siess: joe@salemreporter.com or 503-335-7790. A MOMENT MORE, PLEASE – If you found this story useful, consider subscribing to Salem Reporter if you don’t already. Work such as this, done by local professionals, depends on community support from subscribers. Please take a moment and sign up now – easy and secure: SUBSCRIBE. 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