DAVID TO PAY MORE FOR CITY PENSION IN ONE-YEAR EXTENSION; WHAT IT MEANS FOR SAN LEANDRO
By Steven Tavares
|Fran David replaced
Greg Jones in May 2010.
Hayward will extend the contract of current City Manager Fran David until 2012, pending approval by the City Councl Tuesday night. The renewal of David’s contract for another year is similar to the deal she signed in May 2010 after replacing Greg Jones as city manager and illustrates Hayward’s continuing economic difficulties.
David, who makes $200,500 annually will lose some perks, according to staff reports. Gone is a $500 monthly automobile allowance in addition to a $100 cellphone stipend. Notably, she also agrees to contribute up to the eight percent of her salary towards her pension. The previous contract called for the city to pay seven percent annually with David paying one percent to the California Public Employees’ Retirement System (CalPERS).
The compromise may be viewed as a signal to city employees the pension situation is, according to some, untenable in this current economy featuring decreasing revenues and higher expenditures. David’s contract now runs until June 2012.
Neighboring San Leandro may be looking at the contract situation in Hayward as a template for its own search for a new city manager this spring. The City Council voted in December to not extend City Manager Stephen Hollister’s contract past June 2011. Hollister told the council Dec. 21 he would resign, but stay on for the duration of his contract.
Like many cities, San Leandro, led by its new mayor Stephen Cassidy, has championed pension reform to help balance rising deficits. Some are wondering whether San Leandro will be able to find suitable and qualified prospects for its city manager opening amid calls, among other things, for a candidate earn less and possibly pay more for their retirement.
Some observers also question whether the salary and benefits package will be sufficient to attract a qualified applicant willing to spend more than a few years at the helm of San Leandro’s city government. If David’s new contract is any indication, it may prove a similar package is enough to, at least, retain personnel for the job. David’s salary is roughly identical to that of Hollister in San Leandro and both were hired from within on an interim basis.
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