City and county officials agree severance pay is unavoidable
When San Benito County officials fired public works director
Jerry Lo, some people were surprised to learn that he will receive
six months severance pay, in accordance with his contract. The
termination cost San Benito County officials nearly $65,000.
”
I understand the concern from the community,
”
said Reb Monaco, a San Benito County supervisor.
”
We recently had to let go of a high-level employee. I’m willing
to take the hit for it. That’s the nature of the beast that we’re
dealing with.
”
City and county officials agree severance pay is unavoidable
When San Benito County officials fired public works director Jerry Lo, some people were surprised to learn that he will receive six months severance pay, in accordance with his contract. The termination cost San Benito County officials nearly $65,000.
“I understand the concern from the community,” said Reb Monaco, a San Benito County supervisor. “We recently had to let go of a high-level employee. I’m willing to take the hit for it. That’s the nature of the beast that we’re dealing with.”
Including Lo, there are 10 Hollister city and San Benito County employees who would receive between six months and one year of severance pay upon termination, according to their contracts. Although there is no payout if an employee quits or retires, terminating some employees could cost more than $140,000.
The county has negotiated severance packages for the last two years. In Hollister, city staff have offered them for six years.
Susan Thompson, the county administrative officer, would receive up to one year of severance pay – six months salary plus one additional month for each year of additional service.
Other local communities, including Santa Cruz and Santa Clara counties offer similar severance packages.
“Some of those cities are a very popular place to live, or a very popular place to work,” Monaco said. “We have to be competitive. The idea that people are beating down their doors to move to San Benito County, I don’t believe that.”
County officials had a difficult time filling some department head positions, Monaco said.
Lake County, a rural county north of Napa, does not offer severance because “we don’t need it,” according to Jeff Rein, deputy county administative officer.
Hollister city manager Clint Quilter would receive six months severance. If he has not found comparable employment after six months, he will receive his salary in bi-weekly payment, or city officials will make up the difference between his current salary and old salary.
Severance pay is a delicate topic, said Doug Emerson, Hollister’s mayor. Some CEOs have appeared recently in the news due to their so-called golden parachute, Emerson said.
“It is something that we need to be extremely cognizant of in offering contracts to new employees,” Emerson said. “Sometimes those things have to be looked at in light of the entire package that is offered.”
Quilter was promoted from within existing city staff and his salary was a tradeoff for a lower salary, Emerson said.
“Part of that was he agreed to a salary which was much lower than if we had to go outside,” Emerson said. “We were probably going to have to pay $20,000 to $40,000 per year more.”
Department heads are generally considered at will employees, which means that city council members can meet in closed session and fire them, Emerson said.
Without a severance package agreed upon in advance, government officials must follow a legal process to fire at-will employees, Emerson said.
“It would be anybody who is not in a bargaining unit,” Emerson said. “Then we have to file dismissal and we have to go through that legal dismissal process, which requires attorney fees and all that stuff.”
The process can be costly, Emerson said.
Pat Loe, a San Benito County supervisor, agrees with the necessity of severance pay, but only during an employee’s first year, she said.
“After a year on the job that package should go away,” she said. “By that time they have accumulated sick pay, vacation. By that time, it is not that important to have some kind of guarantee.”
Money spent in severance pay could be better spent on other things, Loe said.
“I don’t agree with it so we’re just going to have to go back and decide how we’re going to move forward from here,” Loe said.
Severance pay is a necessary evil, Emerson said.
“You can say you’re not going to do it, but then you just end up with a bunch of different problems,” Emerson said.
Severance packages for department heads
San Benito County
Art Henriques, director of planning and building
Salary: $112,475
Severance: six months
Richard Inman, assistant county administrative officer
Salary: $114,345
Severance: six months
Dennis LeClere, county council ‘Severance: six months
Salary: $136,000
Susan Thompson, county administrative officer
Salary: $140,595
Severance: six months, plus one additional month for each year of service
City of Hollister
Stephanie Atigh, city attorney
Salary: $124,800
Severance: six months
Robert Galvan, administrative services director
Salary: $104,688
Severance: six months
Jeff Miller, chief of police
Salary: $107,204
Severance: six months
Steve Wittry, city engineer
Salary: $102,814
Severance: six months
Clint Quilter, City Manger
Salary: $128,000
Severance: six months. If he has not found comparable employment after six months, he will receive his salary in bi-weekly payment, or city officials will make up the difference between this current salary and old salary.
