However, Mayor Jim Connors said state law gives the privilege of appointing council members to the city council.
The council is planning to appoint a replacement for O'Neill because the next time the city could go to a special election for the seat would be in November. Whoever was elected at that special election would then only sit for about six months before the next spring election in April 2013.
At the committee of the whole, O'Neill announced he would resign effective the next day.
In a letter to the city clerk, O'Neill said the council members and citizens are being intimidated into supporting the objectives of "those who control the city."
Without mentioning City Administrator Dennis Jordan by name, O'Neill accused the "nonelected city officials" of covering up litigation the city was involved in.
He said he also chafed under the open meetings law, which required him to keep silent on issues that were discussed in closed session.