New City Manager Contract – Too High?

pinkerton-steveOn the surface it would appear that new City Manager Steve Pinkerton is getting a hefty raise over both his current contract and the contract of Bill Emlen, Davis’ previous City Manager.  But from the start, both Mayor Joe Krovoza and Mayor Pro Tem Rochelle Swanson disputed that notion.

According to the Mayor’s press release last week, Mr. Pinkerton’s salary, as proposed, will be $188,000 per year.  The proposed contract includes provisions that he will pay two percent of the eight percent employee contribution towards his pension, and is required to take three unpaid furlough days in the upcoming fiscal year.

Steve Pinkerton’s salary and benefits, according to the release, may be modified to maintain consistency with changes in compensation for all management employees.  He will not receive any city contribution towards a deferred compensation plan and will not receive any auto or technology allowance.

The contract is similar in structure to Bill Emlen’s, and its total compensation will, at most, represent a $3,500 increase over Mr. Emlen’s last full year of 2009.

That is how Mayor Pro Tem Swanson described it to the Vanguard in a phone conversation following the hire last week.

However, Sue Greenwald, who made it clear that Mr. Pinkerton still had her full support, voted against the contract because it was too much money.  She argued that the salary was too generous and cited high salaries for local government management positions as a key factor driving local governments toward bankruptcy.

Her colleagues were quick to counter that the most qualified city manager candidates need competitive job offers.

It is a tenuous position for the Davis City Council because this reasoning is what fueled a decade-long arms race of employee salaries.

Still, Davis, as one of the cities that pays the least for city managers, faces a number of dilemmas in this decision.

First, they had to find the qualified candidate.  Everyone, including Councilmember Greenwald, agrees that Mr. Pinkerton is qualified.  She voted along with the rest of the council to approve the hiring of him.

So, if it is not a question of quality, then you have to bring him aboard at a cost that is enough to make him willing to uproot his family and come to Davis.

Moreover, the total compensation here is in the same basic range of Mr. Emlen’s.  That means that while Mr. Pinkerton gets a raise in terms of salary, the city is paying basically the same amount.

Following the council meeting, the Davis City Council met in closed session and revised his contract.  One of the key changes is that Mr. Pinkerton will pick up 8 percent rather than 2 percent of his base salary.  That should be enough of a difference to reduce his net total compensation to below Mr. Emlen’s level.

This is a tricky issue, and we still do not know how exactly bargaining groups will respond to the new city manager or his contract.

As we discussed before, at times you get what you pay for.  When the City of Davis hired Landy Black, they were having to pay out tens of thousands each year in claims, because of complaints and lawsuits filed against the Davis Police Department.

During the tenure of Chief Black, that number has fallen almost to zero.  As a result, Council felt justified last year to give the Chief a sizable pay increase to keep him in Davis, despite the budget crisis.

A good city manager can reduce the costs of running the city by hundreds of thousands, if not millions.  So, at least philosophically, there is something to be said about finding the right person and then figuring out what it takes to get that person here.

Is that tricky?  Yes.  Sue Greenwald points out that “it is difficult to know what kind of city manager someone would make based on a few hours of interviews.”

On the other hand, at least now she says she fully supports this hire, just not the cost.

I just do not think you can separate the two.

On the other hand, there are also delicate politics to consider, as the council asks the employees to sacrifice and take concessions to cut $2.5 million in personnel costs. It might be more difficult when they are looking at a man making $188,000.

Times are tough, and I don’t have the perfect answer here, other than to hope that the council made the right decision.  We’ll find that out soon enough.

—David M. Greenwald reporting

Author

  • David Greenwald

    Greenwald is the founder, editor, and executive director of the Davis Vanguard. He founded the Vanguard in 2006. David Greenwald moved to Davis in 1996 to attend Graduate School at UC Davis in Political Science. He lives in South Davis with his wife Cecilia Escamilla Greenwald and three children.

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Budget/Fiscal

14 comments

  1. This information is completely incorrect, David. Human resources calculated the total compensation, and it is about $40,000 higher than Bill Emlen’s. The total compensation is $281, 877.

    Of course we could have found a competent city manager for far less. I wish that you had presented my analysis of comparable state management salaries.

    Top state management who manage departments with budgets 6 times ours make $126,000. Top state managers who manage budgets 13 billion dollars make between $136,00 and $155,000. And their benefits are less. I know some of these people, and they are among the highest quality managers you can find.

    Our parks and rec department head makes more than the executive directors of major state agencies.

    This is the same old, same old. Nothing changes. We talk about sustainable budgets, but we do not change our practices.

  2. “Following the council meeting, the Davis City Council met in closed session and revised his contract. One of the key changes is that Mr. Pinkerton will pick up 8 percent rather than 2 percent of his base salary. That should be enough of a difference to reduce his net total compensation to below Mr. Emlen’s level.”

    Pinkerton’s entire compensation will be 121% of Emlen’s in year 1. It will be 117% of Emlen’s the second year, after the 8% pension contribution kicks in.

    For the real story, look at http://www.davisenterprise.com/opinion/news-was-a-lie-but-contract-is-better/

  3. “This is the same old, same old. Nothing changes. We talk about sustainable budgets, but we do not change our practices.”

    I agree Sue. It’s also now looking like we once again have a majority who are going to say yes to most new development.

  4. [quote]Following the council meeting, the Davis City Council met in closed session and revised his contract. One of the key changes is that Mr. Pinkerton will pick up 8 percent rather than 2 percent of his base salary. That should be enough of a difference to reduce his net total compensation to below Mr. Emlen’s level.[/quote]

    Why the sudden change?

    [quote]This information is completely incorrect, David. Human resources calculated the total compensation, and it is about $40,000 higher than Bill Emlen’s. The total compensation is $281, 877. [/quote]

    To dmg: So which version is more accurate, Council member Swanson or Council member Greenwald? Is Pinkerton’s salary $3500 more than Emlen, or $40,000 higher?

  5. It will be good to clarify the various assertions as they seem disparate.
    I wish salaries, especially those of govt, employees, be expressed as total compensation rather than base with other amenities usually unknown and as we know can add significantly.
    Reminds me if hotel lodging or rental cars which is expressed in base $ without the expected taxes.

  6. “Her colleagues were quick to counter that the most qualified city manager candidates need competitive job offers”

    I find a great deal of irony (or better yet hypocrisy) in the city councils’ (sans Sue Greenwald) justification for the new city manager’s compensation. That being the fact that they have acknowledged and applied this philosophy in hiring someone they’ve basically hired to do the exact opposite (i.e. reduce the competitiveness of the total compensation) to the rest of the entire city staff.

    Does anyone not see the double-standard here? Those who are suggesting that it may affect the upcoming contract negotiations may not be fare off, and justifiably so.

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