Laguna Beach City Manager gets bump in pay over the final 2 years of his contract
LAGUNA BEACH — City Manager John Pietig — praised for his dedication to the city and long work hours — will receive a 2.5% pay increase in each of the next two years.
The decision follows the Laguna Beach City Council final budget review on Tuesday, June 18, in which the council looked at estimated city expenditures over the next two years. The budget for 2019-20 is expected to be about $103.6 million — up nearly 7% from the $97 million budget approved last year. City officials are expecting to spend $108.4 million in 2020-21. The budget period begins July 1.
The Council also reviewed annual salary increases for city staff and with that, considered a 5% “exceptional performance pay” increase for Pietig.
Instead of giving Pietig a 5% pay increase, however, the council voted 3-2 (with council members Steve Dicterow and Toni Iseman opposed) to give him a 2.5% raise in each of the two remaining years of his contract.
Pietig’s contract expires June 30, 2021. He started in Laguna Beach in 2001 as assistant city manager and took over as city manager in 2010.
“I think John has accomplished a lot and there is more to go,” said Mayor Bob Whalen, who with Councilman Peter Blake was on a subcommittee considering Pietig’s increase. “I see John going above and beyond of what I see in other locations.”
Blake, who previously had publicly supported Pietig getting “exceptional performance pay,” said he had gotten ahead of himself with the recommendation.
“I may have jumped the gun calling it ‘exceptional performance pay,’” he said. “But given that he’ll now do a lot of work, we should compensate him. I was thinking along the lines of, ‘How would I motivate employees in my business.’”
Several residents voiced their opinions, Tuesday, mostly asking what criteria the council sets for Pietig’s evaluations. Suggestions included staff evaluations and reviews of capital improvement projects and whether those come in on time and within budget.
“I see a city manager who has not husbanded my tax dollars well,” said resident Michele Monda, adding that in her personal surveys on the Nextdoor app she saw very little community support for the “exceptional performance pay.” “He’s created a toxic environment where the word on the street is not to work in Laguna.”
Resident M.J. Abraham wondered if the council had criteria for their evaluation for Pietig, and if so, how the public could see it.
“I’m not here to bash,” she said. “But, are there actual performance-setting goals? What evaluating rating instruments do you use? How do you arrive at a consensus?
“It would ease public concern on transparency for a formal process to be in place,” she added.
Whalen agreed with the need for greater transparency on the review process.
“It’s a question we need to work on,” he said. “I don’t know that it’s well communicated to the public.”
Whalen commended Pietig for building a strong staff, citing such hires as Police Chief Laura Farinella, Director of Community Development Greg Pfost, Fire Chief Mike Garcia and Director of Public Works Shohreh Dupuis.