S. Tahoe council, city manager reach contract agreement

South Lake Tahoe City Manager Nancy Kerry has agreed to a 3½-year contract that pays $170,000 a year, has the same health and retirement benefits as other employees, and does not come with any extras.

She told the council she does not want a car allowance. Instead, the council has agreed to put aside $4,800 a year into an employee incentive account. This will be used to recognize employees who do exemplary work.

Nancy Kerry

Kerry also agreed to 80 hours of administrative time, which is 40 hours less than the department heads receive.

No automatic raises are built in. It will be up to the City Council if her salary increases between now and when the contract expires in April 2016.

When Tony O’Rourke left in June he was making $188,000, which included the car allowance.

The three previous city manager contracts included nine months of severance pay if the council let them go. Kerry would receive six.

Another cost savings to the city is not paying moving expenses.

The council in closed session Sept. 4 agreed to this contract on a 3-0 vote, with Mayor Claire Fortier absent and Councilwoman Angela Swanson not taking part per legal advice. It will come back to the council in open session on Sept. 18.

— Kathryn Reed