(May 16, 2003) -- Newly-named City Manager Jerry Miller will draw a base salary of $197,000 a year under the terms of an employment agreement agendized for voted approval by the City Council at its May 20 meeting.

The sum is $2,000 less than the Council agreed to pay now-former City Manager Henry Taboada (in cash plus deferred compensation) in an agreement approved by Councilmembers in November 2001 (6-1, Baker dissenting, Grabinski absenting himself, Richardson absent entire meeting). Mr. Miller's salary arrangement does not contain a deferred compensation proviso which caused some public consternation in the past (details below).

Under the LB City Charter, the City Manager is hired by and serves at the pleasure of the City Council. Mr. Miller's employment terms have already been negotiated between him and the Council in closed session but a public vote is required on the agreement.

In addition to the $197,000 base salary, the agreement provides that Mr. Miller will receive vacation and sick leave, retirement and pension system contributions, holidays, health and life insurance, executive leave, physical examinations, and other fringe benefits and working conditions now existing or later amended, plus a monthly milesage allowance.

If the Council were to can him during his first twelve months, he'd get a lump sum cash payment equal to twelve months' aggregate salary and the cash equivalent of his fringe benefits for twelve months (If he's terminated for conviction of a felony or any offense involving a violation of his official duties, or for any unlawful act involving personal gain to him, or because of his legal disqualification from office, the aggregate severance is kaput.)

If the Council were to axe him after his first twelve months, he'd get a lump sum cash payment equal to six months' aggregate salary and the cash equivalent of six months' fringe benefits (same exclusion for felonies and other bad acts).

In December, 1998 the City Council approved a contract with former City Manager Taboada for an annual salary of $165,000 plus $8,000 a year in deferred compensation. The contract allowed subsequent salary adjustments determined from time to time by the Council and the City Manager's base salary subsequently escalated to $181,500; with deferred compensation of $8,000 taken in the prior year as compensation producing a salary of $189,500.

In November, 2001, public testimony by grassroots LB activist Bry Myown forced a public admission that a proposed contract renewal for Mr. Taboada actually provided for nearly $200,000 annually -- by adding $10,000 in deferred compensation on top of the $189,500 salary (which included the prior year's deferred compensation).

The Council voted 6-1 (Baker voting no; Grabinski absenting himself before item, returning afterward; Richardson absent entire meeting) to approve the deal.

Mr. Miller's employment agreement does not contain a deferred compensation proviso. (If the Council subsequently raises his $197,000 base salary, there'd be no mathematical ambiguity about it and we'll report it.)

The Governor of CA currently receives a salary of $175,000 a year.