Sacramento City Council votes against extending the city manager. Is new leadership coming?
Howard Chan’s time as Sacramento’s city manager is nearing its end after the City Council voted Tuesday to reject his contract extension.
The council voted 6-3 against his requested one-year extension, with Council members Rick Jennings, Lisa Kaplan and Phil Pluckebaum offering their support for Chan. His contract ends Dec. 31 and, though Chan can work without a contract, several council members signaled that this decision means the end of the city manager’s tenure.
“It’s time to move on,” said Councilmember Karina Talamantes. “I think it’s time for a new era in Sacramento.”
The vote is the first major decision by the new council and represents a significant change in thinking among city leadership, including Mayor Kevin McCarty, who had previously voiced his support for Chan. In a statement after the meeting, McCarty confirmed that the council will begin its search for a new city manager in 2025.
“We’ll figure out the next chapter and how that looks like,” McCarty said.
The decision follows months of criticism by residents over Chan’s high salary and decision-making. Last year, Chan made roughly $593,240 in total wages — the second highest for a city manager in the state.
Chan did not publicly speak at the meeting.
Still, several council members said they were willing to support a one-year extension of Chan’s contract up until a three-hour closed session meeting Tuesday. There, Councilmember Eric Guerra said they discussed the contract, which offered Chan the option to exercise an additional year as an assistant city manager.
Audible gasps were heard from the crowd after Guerra shared that detail at the public meeting.
“It’s the condition of the contract that is a concern,” Guerra said.
Support for Chan remained strong throughout the evening, with some council members and business leaders praising his more than seven years in the position and decades in city government. They cited the need for stability, particularly as the city faces a $77 million budget deficit next year.
“As we know leadership is about consistency and vision and Howard has embodied both throughout his tenure,” said Jay King, president of the California Black Chamber of Commerce. “He has a proven track record and ability to address the unique needs of Sacramento.”
Near the end of the meeting, Kaplan said she was disappointed with how “politics got in the way” of Tuesday’s vote.
“We could have done better,” Kaplan told Chan. ”This is not the graceful landing you deserve.”
Of the 31 residents who spoke ahead of the council’s vote, most argued Chan represented the status quo, was overpaid and had failed in his position.
“We’re a working-class city,” said Sacramento resident Mo Kashmiri. “The last thing we need in a budget deficit is overpaid civil servants. They serve us. We don’t serve them, and we do not need that much money going to the city manager right now.”
Criticism of Chan’s pay has grown loud in the last year.
In January, the council rescinded the decision to give Chan a raise after The Sacramento Bee reported that it had violated state law in the process of approving the new deal. Chan then requested the the city extend his contract in October, but the council voted to push the discussion until after McCarty and other new council members were sworn in.
Among the speakers on Tuesday was Flojaune Cofer, who narrowly lost the mayoral race to McCarty. Cofer claimed she was offered a campaign contribution of $4,050 in September if she agreed to extend the city manager’s contract.
She said that “to her knowledge” Chan was not aware of this proposal, but the offer should still raise concerns. Cofer later declined to share the name of the person who offered the contribution, citing concern for her safety.
“Given the casual ease with which it was offered, I can’t help but wonder if I’m the only one in town who has had this experience,” Cofer said. “It makes me worry about business as usual in Sacramento.”
Chan has served in the role since 2017, when he took over for former city manager John Shirey. A new city manager could be hired following a nationwide search or in the interim by promoting an assistant city manager.
This story was originally published December 18, 2024 at 5:00 AM.
