After experiencing a revolving door of city administrators over several years, things stabilized for Carmel when longtime police chief Mike Calhoun was appointed as interim administrator in November 2015. Now, even that move is drawing scrutiny.
A complaint by a citizen to the California Public Employees’ Retirement System alleges that Calhoun was overpaid during his final year with the city. It’s prompted a review of his compensation, CalPERS spokesperson Amy Morgan says.
Calhoun says he was told by CalPERS in September that there was a high probability that his compensation would be reviewed based on the changes during his final year with the city. He received a letter in late fall confirming that a review would be conducted.
The complaint centers around the nine months from November 2015 to July 2016, when Calhoun’s annual salary was $175,000. During four of those months, he served as interim city administrator after former city administrator Doug Schmitz abruptly resigned on Oct. 31, 2015.
Calhoun received a salary boost from $145,000 to $175,000 when he became interim city administrator in November 2015, but even after he went back to being police chief his pay remained higher, according to the complaint.
City records show Calhoun’s salary dropped slightly – to $170,000 – but only five months after City Administrator Chip Rerig took over on March 1, 2016.
“He was my right arm for the first several months I was here,” Rerig says, explaining why Calhoun’s salary remained at that level.
Calhoun says he was acting as an assistant to the city administrator during those months, while he was performing his duties as police chief.
Calhoun stepped down as chief on Dec. 31, 2016.The complaint contends Calhoun’s compensation in his final year was inflated due to his interim city administrator role, which would in turn inflate his pension benefits. CalPERS benefits are determined by three factors: age at retirement, the highest salary for either a one – or three-year period (depending on the employee’s contract), and years of work.
Rerig doesn’t believe Calhoun’s salary last year will affect his PERS benefits. Morgan says all factors of compensation over Calhoun’s 32-year career will be taken into consideration, including considerations specific to law enforcement employees.
As for Calhoun, he says he's disappointed someone felt the need to complain.
"I have to tell you it's disconcerting, because you try to do the best you can, you put in 32 years, you work hard, and when you leave office people are criticizing without knowing all the facts," he says.
Editor's note: Additional information was added to this report to include comments from Calhoun.
(2) comments
If, as Mike Calhoun stated he was acting assistant city administrator between March 1, 2016 and September 1, 2016, then that is a tacit admission that he and city administrator Chip Rerig were responsible for the city’s failure to implement the CalPERs cost-sharing changes approved by the city council in November 2015 until one month after Calhoun retired in January 2017, another financial benefit to Calhoun.
And if, as Calhoun stated he was acting assistant city administrator between March 1, 2016 and September 1, 2016, then his salary should have reverted to $145,000/year, not $170,000/year, between September 1, 2016 and December 30, 2016.
Advice to Rerig and Calhoun: finding yourself in a hole, stop digging!
Calhoun is wrong to take this personally. Citizens who strive for fiscal responsibility aren't necessarily questioning the job he did, but rightly questioning how our tax dollars are being spent. Even if it was personal scrutiny of his performance/compensation, that too is what comes with being a public servant. Along with those benefits comes responsibility. Along with being a citizen comes holding all public officials accountable, and careful scrutiny of all fiscal matters. I feel like Carmel's citizens would be better served if more of this type of oversight happened on a consistent basis, both internally and externally.
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