Jul 19, 2008

City manager contract complete

Council to vote on proposal; agreement includes consultant restrictions

By Kristina Peterson / Daily News Staff Writer

If Palo Alto's next city manager, Jim Keene, gets a cold when he starts work this September, he won't have to worry about missing a paycheck.

That's because Keene will begin his job at the helm of Palo Alto's city staff with 240 hours - the equivalent of six weeks - of paid sick leave, according to Keene's proposed contract agreement, which heads to the city council for approval Monday night.

But while generous in many parts, Keene's proposed contract is also more limited in others than that of his predecessor, current City Manager Frank Benest. The biggest difference is that unlike Benest, Keene will not be permitted to take on any paid work outside of his job running Palo Alto.

"Manager shall devote his full energy, skill, ability and productive time to the performance of the manager's duties," states the proposed contract drafted by outside attorney Steve Dorsey and approved by Keene.

"It's definitely more restrictive, and that was quite deliberate," said Mayor Larry Klein. "That was a point of contention with Frank."

Last year, Benest was paid between $1,001 and $10,000 by each of six different municipal associations for training employees in cities including San Luis Obispo and Covina, according to his statement of economic interest.

Klein said Keene brooked no objections to limiting his activities to managing Palo Alto and participating in professional groups without compensation.

"If you're the city manager, that's what you do," Klein said.
Keene did not return requests for comment Friday.

But even without the consulting gigs, Keene will be well compensated by taking the Palo Alto job.

In addition to his $240,000 starting salary, Keene will receive regular benefits and a transportation allowance of $600 per month. The city also will contribute 50 percent of the maximum contribution to his retirement plan. After three years of service the city will contribute 75 percent of the contribution and after five years, 100 percent. In 2008, the maximum contribution was $46,000.

Keene also starts his job with 120 hours of paid vacation and will accrue 200 more hours each year.

"Manager's tenure and long career in public service has been considered to determine the accrual rate," the contract noted.

And to help Keene relocate to Palo Alto from his current house in Oakland's Rockridge district, the city will pay $5,000 per month for up to 12 months in temporary housing, as well as moving expenses of up to $25,000.

"I don't expect he'll necessarily spend it all," Klein said.

When Keene finds a house to buy in Palo Alto, the city will contribute up to $1.5 million to its purchase and lend him up to $500,000. As "tenants-in-common," the city and Keene will own the house in proportion to how much each ends up investing in the residence.

"Since the city requires the city manager to live in Palo Alto, there seems to be some obligation on our part to help with the housing cost," Council Member Yoriko Kishimoto said.

Since he already is a resident of the Bay Area, Keene hopefully is "not in total sticker shock," she said.

Should Keene one day be fired or asked to resign, he will receive a cash payment equivalent to a year's salary, as well as the cash value of 12 months of benefits, unless he is convicted of a felony.

Keene, formerly the city manager in both Berkeley and Tucson, Ariz., will become Palo Alto's seventh city manager when he starts on Sept. 2.
The council will vote whether to approve the contract at Monday night's meeting.



E-mail Kristina Peterson at kpeterson@dailynewsgroup.com.