The City will save some money on city manager’s expenses with the new proposed contract for Steve Rymer, primarily through base salary, retirement and housing costs, according to Mayor Steve Tate.
Rymer’s base salary of $199,500 per year is about $4,000 less than Tewes’ final-year salary of $203,485, according to the draft contract presented to the City Council by Mayor Steve Tate for Wednesday’s Council meeting. Both contracts allow for an annual cost-of-living salary increase.
Plus, Rymer will pay the full employee’s share of CalPERS annual retirement contributions, which he said is currently 8 percent of his salary.
That’s a “huge difference” between the two contracts, Tate said.
Up until Rymer’s appointment to city manager, which is scheduled to take effect Feb. 4, the City has agreed to pay the entirety of its city managers’ annual scheduled share of CalPERS contributions.
The City will continue to pay the equivalent of about 15.6 percent of Rymer’s and other management employees’ salaries toward their respective pension funds, according to City staff.
The proposed contract also excludes an annual housing allowance and a home loan, both of which were part of Tewes’ contract. Tewes received a $750 monthly housing allowance, and the City loaned him $475,000 for a home purchase. The interest rate on the loan started at 4 percent, and increased to 5.6 percent in 2007, according to his contract.
Rymer said he already lives and owns a home in Morgan Hill, and that’s likely why the Council did not include housing allowances or reimbursements in his proposed contract.
Tewes’ total compensation for the 2012-2013 fiscal year, which would have been his last full year as city manager, would have been about $255,000 – including all benefits and allowances. A final, approved draft of Rymer’s contract, and thus the total cost of the contract, was not available at press time.
Tewes was first hired as Morgan Hill’s city manager in 2000, and announced last summer that he would be resigning by the end of 2012. He agreed to extend that date to February 2013, in order to help the Council with the transition to a new city manager and city attorney.
The Council announced last week that Rymer is their top choice to replace Tewes, after a months-long, nationwide search for a new city manager that drew nearly 50 applications from candidates throughout the state.
Rymer has worked for the City since 2006, and is currently City Hall’s Director of Community Services, overseeing recreation, parks, fire and other administrative services.
Both Rymer’s and Tewes’ contracts include $500 monthly vehicle allowances, 120 hours of administrative leave each year, up to 5 percent of salary for deferred compensation paid annually by the City, and expenses for “professional development” such as League of California Cities events and other conferences.
Rymer’s proposed contract also says the City will not reduce his salary, compensation or benefits before the contract expires June 30, 2014.
The Council was expected to approve Rymer’s new contract at Wednesday’s meeting.
