City Official Settles Harassment Suit

A Latina city official who claimed she was sexually harassed, subjected to racial slurs and denied a raise has settled her lawsuit against the municipality and its former manager for $256,000, it was announced.

City Housing and Facilities Maintenance Director Ester “Tina” Esparza, a city employee since 1973, had alleged that former City Manager Dick Velthone has created a hostile work environment since 1980 by allegedly hugging and kissing her against her will, according to court documents.

Velthone, 63, retired in January after 25 years with the city. Esparza, 53, is on leave and it is unclear when she will return.

According to the settlement, which was approved Monday in U.S. District Court, neither side admits liability and the deal allows Esparza to switch jobs and become a special projects manager. She will also not be required to go into administrative areas of City Hall unless specifically asked to do so.

Esparza was awarded $75,000 in a workers’ compensation claim and $43,254 in back pay. Additionally, $74,746 will be invested in a city investment fund in her name. The city will also pay $63,000 in court costs and attorneys’ fees.

Esparza had been seeking $1.5 million in damages. Attorneys in the case declined to comment.