Council Looks at Raising City Managers Compensation

Published : Friday, November 16, 2018 | 6:27 AM

City Manager Steve Mermell

[Editor's Note: This article originally incorrectly stated that Mr. Mermell has been paid a housing allowance. That was not correct. It has been removed from the story. We apologize for this error.]

Pasadena Mayor Terry Tornek has proposed an increase in City Manager Steve Mermell’s annual salary and vehicle allowance, which the City Council will deliberate on Monday, November 19 at its regular meeting.

Tornek’s report for the City Council said this would be the second amendment to Mermell’s employment agreement since Mermell became City Manager in August 2017. Tornek said his recommendation is the result of a recently completed performance evaluation.

The Mayor is recommending that Mermell be paid an annual salary of $296,010, retroactive to August 6, 2018. Tornek is also recommending the salary control rate for the City Manager classification be officially set at $296,010.

Mermell’s vehicle allowance would also be increased to $550 per month, according to Tornek’s recommendation.

As management incentive pay, Mermell would receive a one-time lump sum payment of $10,000.

Tornek’s recommendation also said Mermell will continue making a 10 percent employee-paid pension contribution to the Public Employees’ Retirement System (PERS).

If approved by the City Council, the increases in the City Manager’s compensation and allowance will result in an overall fiscal impact of $14,600 in the fiscal year 2019 operating budget, the report said.

In August 2016, the City Council approved a five-year contract for Mermell as full-time City Manager with a $275,000 annual salary.

Last January, the City Council passed an amendment to Mermell’s contract raising his annual salary to $286,000 and awarding him a one-time lump sum bonus of $7,500.

If the new amendment is passed, Mermell’s salary and benefits together are expected to cost about $418,000 a year, according to staff reports.

 

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