Residents protest proposed severance increase in San Clemente city manager contract, before council takes option off table
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SAN CLEMENTE — Dozens of residents packed City Council chambers Tuesday, Nov. 20 to protest a proposal to add a six-month severance extension to City Manager James Makshanoff’s renewed contract, which already provides for a year of severance pay.
Residents complained that while the city suffers from public safety issues, homelessness and a fight with the Transportation Corridor Agency over the toll road extension, adding money to the city manager’s contract would be irresponsible.
“People want to know what happened,” said resident Brad Malamud, after the council returned from a closed-session discussion of the contract. “Vote right now, if we’re not going to hear this later. Tell us what happened in closed session on a personnel item.”
Rather than report back immediately, it took several hours to get to the agendized item, at which point City Councilman Steven Swartz said the council had decided to re-work the city manager contract to eliminate mention of additional severance.
The Council also decided to extend from 90 days to 120 days the period following an election during which the city manager could not be terminated. The council voted unanimously to move the annual review date of the city manager contract from fall to May to avoid it falling near an election cycle.
Makshanoff’s contract was renewed on a rolling two-year cycle. His contract continues through 2020, with his next review set for May 2019.
When reporting back to residents, Swartz added that the contract had already been agreed to by Makshanoff, drawing more criticism from the crowd.
At one point, the city’s chief of police Lt. Mike Peters and a deputy escorted Malamud from the council chambers when he accused the council of a Brown Act violation for the agreement with Makshanoff.
“I don’t know why you would give a two-year rolling contract,” Malamud said. “The public deserves to know what happened in closed session. If he did a magnificent job, what is it?
“You’ve wasted everyone’s time,” said Jim Bieber. “You dragged them out of their homes and then you backpedal when they come at you with pitchforks.”
Makshanoff, who in 2014 came to San Clemente from Azusa, where he also was city manager, was given high marks on his performance by the council and lauded for his accomplishments. Makshanoff earned $278,244 in 2018.
“James has done great work with the TCA, put together a budget and made the city run well,” said outgoing Mayor Tim Brown. “His review came across as excellent. We gave him high marks and his contract reflects that.”
Lori Donchak, also ending her term on the dais, agreed.
“The city manager hit the ground running with the hospital closing, the homeless situation and friction with the Orange County Sheriff’s Department,” she said. “James has never wavered on those issues. He’s strong, focused and holds people to the high standards he holds himself to. James does know employee relations are opportunity areas and he’s up for the challenge. We have so many huge issues that we need to pull together and have confidence in the city manager.”
City Attorney Scott Smith said discussions regarding a possible extension to Makshanoff’s severance did not strike him as odd. Typically, when a city attorney contract is negotiated and the council is happy with the performance there is give and take, he said.
“There are discussions of extra vacation, salary or other compensations,” Smith said. “The timing here didn’t seem funny to me.”
Smith added that there was no Brown Act violation because Makshanoff was not present when negotiations of his contract were discussed.
“The mayor (then) had an opportunity to discuss these with Mr. Makshanoff,” Smith said during the meeting. “This is in strict compliance with state law.”
“The idea of the contract amendment was sparked in a nearly empty council chamber two weeks ago with minutes to go before closing session,” said Toni Rubilino, a resident since 2010.
“It was an apparent fly under the radar and vote on the amendment during a holiday week with low citizen turnout,” he said. “What they weren’t prepared for was a massive grassroots campaign to stop this before it happened. They didn’t anticipate upset citizens to attend, speak and present against this notion. They made the right decision to backtrack on additional severance, only after they made the wrong decision to propose it in the first place.”
“Our city manager is already the highest compensated city manager in South OC with a very generous 12-month severance package — higher than other OC cities,” said resident Eva O’Keefe. “We are pleased that no additional severance occurred but disappointed that they extended the period of termination from 90 days to 120. We look forward to the new council, to tackle Mr. Makshanoff’s employment contract, as well as the assistant city manager Erik Sund, after 32 percent of city employees gave them what amounts a vote of no confidence.”
An online petition at change.org collected more than 600 signatures over the weekend opposed to plans to amend Makshanoff’s contract.