The Sacramento City Council on Tuesday night will consider extending the contract of City Manager John Shirey through June 2015.
If approved by the council, Shirey would receive a 2 percent raise under the new contract, boosting his annual base salary to $268,423. The contract contains other benefits, including $15,000 a year into Shirey’s retirement and $500 monthly into an automobile allowance.
Including salary and benefits, Shirey’s annual compensation would be $364,712 under the new contract, according to city spokeswoman Amy Williams.
Shirey’s current contract – which included total annual compensation of $306,000 – expires at the end of August. He was hired by the city in 2011 and was the first city manager to receive a contract.
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A controversial provision of Shirey’s current contract has been taken out. His contract had allowed him to resign and receive six months’ severance pay if city voters approved a strong-mayor measure that would transfer most of the daily duties from the city manager to the mayor.
A strong-mayor measure will appear on the November ballot this year.
Shirey would still receive severance pay if the strong-mayor measure passes and Mayor Kevin Johnson dismisses the city manager – or if Shirey is dismissed for other reasons by the City Council “without cause.” Under that circumstance, Shirey would receive a severance payment equal to the salary owed him for the remainder of his contract at the time he is dismissed.
Shirey said he has not determined whether he would step down if the strong-mayor measure passes. He said Johnson wanted to extend Shirey’s contract.
“There’s going to be a period of time when I see if I want to work under that system and the mayor will want to determine whether he wants (to keep him),” Shirey said. “We both don’t want to see disruption in the organization.”