Generous exit packages, fringe benefits and leave cash-outs placed seven Southern California officials onto a list of the Top 10 best-paid city managers in the state in 2023, according to newly released payroll data from the State Controller’s Office.
The former city manager of the tiny city of Commerce, Edgar Cisneros, topped the state’s chart, with his total wages landing at $639,326, thanks to an extra $400,000 in lump-sum payments made following his resignation in November.
Cisneros’ wages bypassed the runner-up, Sacramento City Manager Howard Chan, by nearly $50,000.
The bulk of Cisneros’ extra pay from Commerce, home to about 12,000 residents, came from a separation agreement in which the city agreed to pay the remaining 13 months left on his contract and to cash out his accrued sick and vacation time, records showed.
Cisneros stepped down after he was identified in a federal cannabis probe and as questions mounted about his administration’s sweetheart deals with a local trucking company.
Despite the controversies, the City Council, eager for new leadership, did not have cause to dismiss Cisneros and opted to pay him out to avoid potential litigation in the future, Mayor Hugo Argumedo said.
“We tried to make it as amicable as we could,” Argumedo said. “It could have become contentious and that’s what we tried to avoid. It was a lot cheaper for us to move in this direction.”
Six of the seven highest paid city managers in Southern California last year separated from their cities and collected an average of $238,858 in extra compensation on the way out the door, the data showed. That’s only slightly less than what a typical city manager in California makes as their regular salary.
Pomona, Rialto near top of list
Former Pomona City Manager James Makshanoff and former Rialto City Manager Marcus Fuller were the third and fourth highest paid city managers in the state in 2023, earning $584,525 and $555,106, respectively, according to the State Controller’s Office.
In December, Pomona and Makshanoff jointly announced that Makshanoff, who had served as Pomona’s city manager for four years, would be departing following a leave of absence. The reason for his departure was not disclosed, and it was unclear whether he voluntarily resigned or was forced out.
Per the terms of Makshanoff’s separation agreement, the city agreed to pay him $604,975 in installments in 2023 and 2024. By comparison, Makshanoff made $283,364 in 2022.
Meanwhile, Fuller resigned from Rialto in January 2023 after 18 months on the job. The city attributed his departure to “management differences.” According to his separation agreement, Fuller received $99,161 for earned salary and accrued benefits through January 2023, plus a lump sum of $430,000.
Rialto Councilmember Ed Scott said the lump sum covered 16 months of additional pay for Fuller, through April 2024. Rialto has churned through three city managers in the past five years. The most recent, David Carmany, lasted less than three months.
Qualified candidates hard to find
Scott said Rialto is not the only city struggling to find and retain qualified city managers. The problem is statewide, he said. The talent pool is small, and many of the most qualified or talented city manager candidates, according to Scott, are seeking work as consultants in the private sector, which pays substantially more.
It forces cities to compete by offering higher salaries, even to those with spotty backgrounds or little experience.
“When you search for city managers, there’s not a big pool to select from. So you wind up with city managers with baggage, or they’re inexperienced. We need to rethink how we negotiate contracts,” Scott said. “They all want a lot of money, but they don’t have a lot of experience.”
Orange County exits
In Orange County, former Laguna Beach City Manager Shohreh Dupuis and former Huntington Beach City Manager Al Zelinka both walked away with more than half a million dollars in wages in 2023.
Dupuis’ retirement in September 2023 came roughly two years after she was promoted to the top spot. In a news release at the time, Laguna Beach stated Dupuis’ decision “comes as a result of a mutually agreed-upon separation agreement that was negotiated in response to a hostile workplace claim filed by Dupuis following a period of conflict with a City Councilmember.”
During
