The Los Alamitos City Council again split during their July meeting, this time over awarding the city manager another pay raise and over some language in his agreement.
Originally hired in 2020 at approximately $194,000 per year, given a raise in 2022 to $214,000; the city manager received an additional pay hike in 2023 and now in 2024, the Council voted 3-1-1 to raise the city manager’s annual income to $254,087 per year.
In addition, according to City Attorney Michael Daudt, Simmons will receive the following:
• One-time retention bonus of $5000.
• Enrollment in the 2.7 % at 55 PERS retirement contribution.
• Accrue five weeks (200 hours) of paid vacation time.
• Contribution up to $2,250 monthly ($27,000 annually) for health premiums.
• Payment for an annual HOAG physical.
• Provision of a city-paid cell phone.
• Optional $70 payment from the city to use his own.
• $55 per month for a wireless hotspot
• Provision of a leased vehicle at city expense.
During the discussion of the proposed agreement, Council member Emily Hibard questioned Simmon’s ownership of a company registered with the Secretary of State and why Council members are prohibited from speaking out if the city manager was fired for “without cause” as allowed in the agreement.
“If the City Council terminates an employee, neither the City Council or individual City Council members may make a written, formal or electronic statement to any member of the press concerning the employee termination,” read Hibard from the agreement, among other outreach limitations.
“Why the gag order,” she said. “What if you do something stupid or something illageal,” she said, providing examples.
“I think that is a fair question,” said Simmons, “but it’s not new. It’s actually been in my contract since day one,” he said, suggesting also that similar provisions are considered standard practice by the City Managers Foundation.
Had he been fired for breaking the law, said Simmons, then there would be cause and “you can say whatever you want.
She also questioned why the city should pay for the city managers participation in outside organizations without so much as listing which organizations are involved?
“Again, that’s language that’s been in that contract since the beginning,” said Simmons, noting its boilerplate language suggested by the International Council of City Managers and the California City Managers Association.
Hibard then asked about contract clauses that deal with raised some eyebrows by saying “it has been brought to my attention that you have a development company, ROS Strategies, that is registered with the Secretary of State.”
“It’s not a development company,” said Simmons.
“I have a Secretary of State filing statement saying it is active and it’s listed as a real estate development and planning. Can you help me understand this,” she asked.
”Prior to the pandemic and prior to taking this job, I considered the idea of having my own development company,” said Simmons, suggesting his intent was to focus more on economic development.
“That did not come to fruition because I was working here,” he said. “So it is company that is still registered, but unactive. After taking this job, I haven’t done any work on it,” said Simmons.
Hibard then moved to pull the pay raise from the agenda until the next meeting to give Simmons time to close the company.
Council member Trisha Murphy seconded Hibard’s motion.
Mayor Jordan Nefulda then stepped in and called a vote on the motion.
Mayor Pro-tem Shelley Hasselbrink began an attempt to halt the questioning.
“Are we supposed to be delving into your personal business? It’s not affecting what you do,” she said, noting Simmons is “taking no actions to show that you have any kind of conflict or moonlighting activities,” she said.
Hasselbrink also said he was “concerned” about “searching” everybody on the Secretary of State’s website to see what they’re doing.”
Council member Tanya Doby suggested she has set up a consulting firm, so she could understand the concerns of a small business owner.
“As a small business owner myself and like the Mayor Pro Tem throughout there, I have not seen any impact from anything that you may or may not be doing in whatever you have left over your personal time after you take care of all of our business, “ she said.
“And I know how difficult it is to get some of the information necessary to start a company, even a consulting one,” she said.
“I actually would be opposed to you releasing a business that you already have a name for that you’ve already got licensure for that you’ve already gone through the steps cost to be on the books for those things, especially with the Secretary of State,” said Doby.
“I’m not sure how it came up. But I have seen nothing that would lend itself to me saying yes, you go and close that and that’s what my vote would be. predicated on,” said Doby.
Mayor Jordan told Simmons to keep his company active.
“Just for the record, and your representations to me, I’m not going to require you or even ask you or even ask you to shut down anything you have,” he said, calling for a second to Hibard’s motion to delay.
Council member Trisha Murphy seconded Hibard’s motion, yet with qualification.
“‘ll second that. I mean, I don’t believe that there’s a conflict of interest but if there’s a way just to review everything, I don’t believe anybody should have to be forced to do anything,”
After Hibard’s motion to delay failed 3-1-1, with Nefulda, Hasselbrink, and Doby opposed and Murphy abstaining, then Doby moved to approve Simmons’ new agreement, Hasselbrink seconded the motion and it passed with Jordan joining the majority, Hibard objected and Murphy, again, abstained.