Pietig sails through approval

A three-year contract for John Pietig to succeed Ken Frank as Laguna Beach city manager was approved Tuesday without a comment from the council or the public.

It took less than five minutes for the council to approve the contract with its sole employee, who will take over from Frank on Dec. 13. Under the city’s form of government, the council is the city manager’s boss. He — or she, although that has yet to happen — is the boss of all other employees.

“It is a typical contract that the council would expect to see,” said City Atty. Philip Kohn, who prepared and presented the contract on Tuesday.

Pietig’s starting salary will be $210,000 a year for the term of the contract — although the council has the prerogative to increase his pay and other compensations. His salary as assistant city manager for the 2010-11 fiscal year was $187,100.

The meeting was the first time Pietig’s salary got such a public airing.

He will have to get used to it. Unlike other city employees, whose salaries are listed in the city’s budget, the salaries and raises for the city manager and elected officials are announced in public hearings. And since the outrageous salaries in Bell became known, the state is requiring the salaries to be posted on city websites.

“Salaries are personal, and it is something we were raised not to discuss,” City Treasurer Laura Parisi said.

She dreads sitting on the dais while the council debates her request for a raise and whether her performance rates a bonus.

“It’s excruciating, even after 11 years,” Parisi said. “It’s awful, but it goes with the territory.”

Pietig’s performance will be evaluated by the council every January, when adjustments in duties and compensation may be made.

The contract in its entirety is available for review at City Hall.

In addition to his salary, Pietig will get deferred compensation equal to 2% of his salary, $4,000 to pay for membership in organizations and travel and living expenses to attend conferences necessary for his professional development and a $500-a-month car allowance for the use of his own vehicle on city business.

In lieu of overtime, he will get 10 days a year administrative leave.

Pietig will be entitled to vacation, sick leave, retirement, health, insurance and other management benefits that are standard city personnel policies.

Pietig will be reimbursed for reasonable, job-related expenses and indemnified against legal action resulting from an alleged act or omission. Further, the city will pay settlements or judgments, if Pietig cooperates with his defense, but the city gets to decide whether to settle.

The city will not indemnify or defend Pietig in any criminal proceeding or in any legal proceeding he initiates.

Pietig is subject to the state code related to conflict of interest. In other words, he cannot profit from side deals that would compromise his independence or actions while employed as city manager. In return, he will file a faithful performance and surety bond. The bond, which is required by the municipal code, covers losses caused by a person in his official duties.

“It is somewhat archaic,” Kohn said. “And it is paid for by the city.”

If Pietig decides to quit, he must give the council a minimum of 30 days’ notice.

If he is fired without cause, asked to resign or the council eliminates the job, the council must pay him an amount equal to nine month’s salary.

Pietig may be fired “with cause” if a physical defect prevents him from doing his job properly, if he fails to pay just debts, takes off and stays from the job without leave or fails to appear before duly authorized bodies on any subject connected to the city’s business.

And he better be on his best behavior. He can be fired if convicted of any criminal offense involving moral turpitude — acts ranging from immodesty to bad morals. And his actions must not be deceptive or motivated by corruption.

Intentional or negligent action that disrupts city operations or is detrimental to a city employee or public safety is also grounds for dismissal.

Under the terms of the approved contract, Pietig can be fired for breaking established city rules and policies, causing an adverse effect on the city’s interests. He won’t get paid severance if he is fired, and the termination takes effect immediately.

The contract was negotiated by Bob Murray, whom the city had hired to recruit candidates for the job, held for almost 31 years by Frank.

Pietig has worked for the city for 9 ½ years, handling some of the most contentious issues, including projects of interest to the California Coastal Commission, which does not always see eye-to-eye with Laguna.

He and his wife, Peggy, who works for SchoolPower, are residents of the city and their two sons attend school here and participate in sports.