YAKIMA, Wash. — A lawsuit alleging that members of the Yakima City Council violated the state open-meetings law was settled out of court Wednesday for $2,500.

The settlement ends a potentially costly legal standoff but leaves unresolved questions about the council's vote in April on new budget policy.

City Attorney Jeff Cutter had little comment on the agreement, which releases the city from any claims of wrongdoing or liability.

But Tim Schoenrock, the attorney who took the city to court over the issue, said he viewed it as a victory for the public's right to know. He accused four council members of illegally lining up votes in April to change the way the city develops its budget.

"I've made the statement, I've gotten the headlines, and the budget issue is now back before the public where it belongs," he said. "So, yeah, I think I made my point."

Among those he accused of violating the state's Open Public Meetings Act was Councilwoman Kathy Coffey.

"The most important thing is to move on," she said. "This has been such a terrible thing for the community right now, so divisive. We need to move on."

The dispute dates to an April 14 study session during which the council adopted a new budget policy that would put more decision making in the hands of council members rather than the city manager and other city staff.

The move enraged Councilman Neil McClure, who quit on the spot in protest.

Into the fray stepped Schoenrock, who alleged that Coffey and fellow council members Rick Ensey, Bill Lover and Micah Cawley violated the state's prohibition against arranging votes outside a public meeting.

Schoenrock obtained a court order May 1, blocking the city from the implementing the new policy pending a hearing. His case was bolstered by the subsequent release of e-mail communications showing that Ensey and Coffey worked with Yakima Valley Business Times editor and publisher Bruce Smith to make sure they had support from Lover to approve the change in budget policy. The three were already counting on Cawley's vote.

After Schoenrock filed his challenge, the council rescinded the policy, a move city officials hoped would render the issue moot.

But Schoenrock went to court to seek compensation for his time, which is permitted under the state's Open Public Meetings Act. His case received a boost when Yakima County Superior Court Judge Blaine Gibson agreed that unless Schoenrock and the city could reach a settlement, he deserved a full hearing.

Wednesday's settlement negates the need for additional hearings, but it leaves unresolved Shoenrock's contention that some council members violated the open-meetings law.

"They certainly didn't do it right," he argued.

Cawley and Lover have pointed out that they were not involved in the e-mail conversations before the April 14 vote.

Ensey said his conscience is clear and that he still does not believe he broke either the spirit or letter of the law.

The decision to settle was purely a pragmatic one, he said.

"It was either settle with this guy or go to court," Ensey explained. "It was cheaper to settle."

Coffey said she fears the dispute will have a long-term chilling effect on the relationships between council members and their ability to have meaningful conversations outside of City Hall.

"I think everyone's so gun-shy now," she said. "It's going to be tough to get anything done."

Schoenrock said his original settlement offer of $1,000 was rejected by the city. He wanted each of the four council members to personally share the cost.

As for the $2,500 agreement, the city attorney said he wasn't sure how it would be paid but that it would not come from council members.

* Chris Bristol can be reached at 577-7748 or at cbristol@yakimaherald.com