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Incoming City Manager Gary King’s proposed contract valued at $195,873

By Staff | Jul 13, 2010

The draft copy of incoming city manger Gary King’s contract was made available by the city clerk’s office on Tuesday.
Negotiated by King and Councilmember Bill Deile, the terms and conditions of the contract were approved by King and City Attorney Dolores Menendez, according to a memo from Deile dated July 13.
If approved by city council during a special meeting on July 19, King will receive $140,000 in base salary. After 12 months, King will receive a performance review and compensation adjustment, and may include an increase in his salary.
The term of the proposed contract is two years.
Other highlights of the contract include: $950 per month in lieu of group health insurance, $450 a month in vehicle allowance, and use of a city Blackberry.
King also would receive six months severance pay in a lump sum if he’s terminated without cause. $950 a month in lieu of group health insurance will also be paid in King is terminated without cause.
Unlike previous contracts for city managers Terry Stewart and Carl Schwing, it is proposed that King have a number of performance based incentives to earn additional compensation
If he reaches all 11 of his performance based incentives, King can make an additional $20,000.
As proposed, first year performance based incentives would include, but would not be limited to:
* Deliver a balanced budget for FY 2010 – 2011 that maintains the 2009 – 2010 millage rate while reducing the proposed budget’s use of reserves to support operations by $250,000.
* Implement a fleet management program, with the objective to reduce expenses by 16 percent.
* Reduce City’s net annual FY 2010 – 2011 contribution requirement for other post employment benefits (OPEB) by $1,500,000, measured on a full year effect basis.
In total, King’s contract is valued at $195,873.
Councilmember Bill Deile also included a compensation comparison with the contract materials that states current City Manager Carl Schwing’s overall package was valued at $203,589, and former city manager Terry Stewart’s at $212,959.
Schwing’s contract, approved by city council in March, was valued at $150,000 for the terms of the contract, which was one year, from March 1, 2010, to Feb. 28, 2011.
Schwing also received $550 a month for car allowance, full insurance premiums for himself and his wife, travel expenses and a hand-held communication device such as a Blackberry.
Councilmember Bill Deile could not be reached for comment on Tuesday regarding the proposal.
Mayor John Sullivan, Councilmembers Pete Brandt and Chris Chulakes-Leetz said they had not seen the contract as of Tuesday evening.
Councilmember Kevin McGrail was out of town and had not seen the contract.
Council members Erick Kuehn and Derrick Donnell did not return calls seeking comment by publication deadline.
Councilmember Marty McClain said he had seen the contract, but did not have sufficient time to review the contract as of Tuesday afternoon.