Lawsuit tarnishes Cambridge city manager's reputation

But now Cambridge's longest-serving city manager finds himself in the hot seat.

His reputation as a man who always gets his way suffered a serious blow recently when a judge ruled against him in a discrimination lawsuit filed by a former city employee, saying Cambridge should pay her more than $4.5 million. The judge singled out Healy for reprimand, calling his behavior toward the employee "reprehensible."

The verdict has given new life to local efforts challenging Healy and Cambridge's political system, which places the city manager - appointed and overseen by the City Council - in charge of the daily decisions of government.

In recent months, a local coalition has mobilized to elect a more aggressive slate of candidates to the City Council, neighborhood groups are stepping up their push against him, and even City Council members flexed their governance muscle last week by attempting to block him from budgeting city money to appeal the discrimination case.

Although the measure failed, the council's challenge to Healy has surprised longtime Cantabrigians, who see the move as a rare sign of resistance by a City Council some believe has ceded too much power to the city manager.

"This is the first time that I know of that the City Council has made an attempt to challenge the city manager," said Pe ter Schweich, whose Cambridge Coalition for Representative Government has been pressing for political overhaul. "He's been railroading the City Council. He reminds them that they may not interfere with anything. That's why this is so significant."

Healy shrugged off the significance of the council's recent push-back, saying it is "the council's right" to challenge him.

He also brushed aside his critics, saying in a brief phone interview yesterday: "It certainly is not accurate to malign my successful performance in municipal government for 39 years. I will leave it at that."

Healy has said the city will not pay one dime of the lawsuit award to Malvina Monteiro, which could exceed $6 million once legal fees and statutory interests are factored in. Monteiro, a former city employee who is black and from Cape Verde, claimed in the lawsuit that Healy and others in city government retaliated against her for filing a 1998 complaint alleging discrimination on the basis of race and national origin. A Middlesex Superior Court jury agreed.

Healy's supporters say the verdict has not tarnished his record and contend his reputation and governance of the city remain stellar.

"He's done a remarkable job," said Sheldon Cohen, who owns Out of Town Ticket Agency. "He's governed by the City Council. There are nine votes [in the City Council], and they can fire him anytime they want. He's proved himself 100 percent."

Indeed, Cambridge is heralded as a mecca for life sciences, technology, multicultural harmony, and Ivy League education. Under Healy's leadership, construction has boomed, including five elementary schools and a $77 million water treatment plant, and property taxes have stayed low.

The city also boasts being one of only a handful in the nation to maintain AAA bond ratings from the three major credit-rating agencies for the past 10 years.

But in neighborhoods like East Cambridge and North Cambridge, residents say the city manager has put development over the needs of the community.

"That's a constant issue here, that businesses are favored by him and his appointees," said Richard D. Clarey, a board member of the Association of Cambridge Neighborhoods.

Cambridge's system of governance, Clarey and others say, gives Healy too much power and too little oversight. And they blame the elected City Council members for being powerless to stop him.

"The City Council is a bit of a figurehead and gives him a rubber stamp on everything," said Peter Wilson, a member of the Cambridge Republican City Committee. "This lawsuit raises the question that maybe he's out of control and needs to be reigned in."

Clarey said "the unusual magnitude of the Monteiro verdict, along with his determination to pursue a hopeless appeal," has put Healy in a spotlight that for once the council cannot ignore.

Last week, members of the council - which approves the city budget - mounted an act of defiance. They tried to reduce a law department item in the budget for professional services - money used to pay outside counsel to fight the appeal.

The measure failed on a tie, 4 to 4, with one abstention.

Though the council's action was hailed by local activists, some say it's another indication that not much has changed.

"Maybe there is a little bit of a rising in tide in the city that things aren't quite right," said community activist Mark Jaquith. "I certainly don't see it in the City Council chamber."

Meghan Irons can be reached at mirons@globe.com.