City Manager / Redevelopment Director : Tom Schwab's salary went from 125,000.00 to 150,000.00 at the last round of negotiations which were held behind closed doors as the Brown Act say they "MAY BE" it does not say they "MUST BE".
The last known contract was for 110,000.00 when did it go to 125,000.00? What other costs are on top of this amount that Mr. Schwab is provided as salary are there?
The statement he isn't paid as much as other Local City Manager's is an indication of arrogance. Grand Terrace is not like other cities. The City Contracts all its limited services, and half of those are let without competitive bid process. We have a significantly smaller population, smaller budget, and perhaps our city mayor should be paid at a rate equal to the rate of the Riverside City Manager is. Price per citizen. I wonder if he would want to make that comparative rate of pay? This is an example of poor fiscal management, and a fraud played out on the citizens of Grand Terrace.
We have Fire, Police, Trash contracts to manage. Roads to repair, and Parks to maintain. This should be the limit of the activities of the City. Unless you want to add in to the mix the Senior Center, but they will tell you they are self supporting, and not managed by the City. You can add in the Child Care Facility a few citizens are able to take part in but those funds are just pass through funds again the Management is not done at the City Level. So why should Mr. Schwab get paid so much.
We of course suggest Mr. Schwab should not be employed by our City. However, the position of City manager will exist, and that position should be paid a reasonable compensation. The Median income in Grand Terrace is $65,000.00 per year. That seems fair. However, one may even look at what is the median income of others working IN Grand Terrace, and find we need to lower it even further.
What is the City Clerk being paid? No doubt she does the bulk of the contract paperwork. Give her a Bonus and let her have Tom's Job as he would be insulted by the suggestion of taking less money from the City of Grand Terrace.
Examples of Why Money Matters at City Hall:
Dodson was asking $760,000.00 and the City paid $1,290,000. $540,000 is big change.
How did this happen. Enter Gene Carlstrom owner of Terra Loma to Negotiate the Final Deal between Dodson and the City. In one meeting, behind closed doors the price went up $540,000.00?
Then they divided the check between two Council meeting so they would not have to say in public that they paid that much for Dodsons.
What makes this not pass the SNIFF TEST?
Carlstrom is or was Councilmember Ferre's campaign manager. Councilmember Ferre should not have even been in the room on that deal.
Carlstrom was a former employer of Bea Cortes, and she has returned to working for him after the deal was made.
Carlstrom is now getting paid to be the current property manager on the Dodson property.
Carlstrom is collecting rent checks for the City and then forwarding the money to the city after he takes a fee.
Carlstrom is collecting that rent from a family relative that is living in the house now.
What made this happen?
Well, the zoning of the OAC and the conditions or limitations put on the property made it impossible to sell to a private party. The City's acceptance of the OAC "Plan" and the limits it put on current and future property owners put the Dodson's in a position where their only possible buyer was the Redevelopment Agency. Was the $540,000.00 a pay off so the Dodson's did not sue the city for the abuse of zoning laws? Who knows what went on behind closed doors? Again, this is a case where the Brown act says the meeting "MAY Be" behind closed doors. The Brown Act does not say Real Estate Negotiations "MUST BE" behind closed doors. This is a choice being made by the Council and Board Members as a result of the Directions of the City Manager, who is backed by his friend he hired the City Attorney.