Vallejo City Council approves exit contract with city manager
(Still frame courtesy City of Oxnard, California; Graphic by Solano NewsNet)
After a short tenure that was peppered with controversy, Vallejo City Manager Greg Nyhoff will exit City Hall with a $600,000 severance package.
The exit fund was approved by the Vallejo City Council in a special session held Thursday evening, with the majority of council members acknowledging that it was best for the city to move forward without Nyhoff at the helm.
“We need to close this chapter in our city in terms of our city manager, and we're looking forward to new opportunities, greater opportunities, for the city and for our community,” Dr. Rozanna Verder-Aliga, Vallejo’s vice mayor, said on Thursday.
As part of his severance, Nyhoff will inherit nearly $600,000 in cash and other benefits. The amount includes payments to his retirement fund and CalPERS pension plan, a coverage of up to 18 months of continued health care benefits, and stipends to secure a new vehicle and pay off a membership fee related to his job.
Nyhoff joined the City of Vallejo in 2017 after serving in a similar role with the City of Oxnard. There, colleagues said he inherited an endless supply of problems, with new issues popping up as quickly as old ones were solved.
“I wish him well in his future endeavors,” Bert Perello, a council member in Oxnard, told the Ventura County Star newspaper. “He inherited much more than he realized.”
The same could be said for Vallejo, though critics say Nyhoff’s problems in the waterfront community were largely of his own doing.
Last year, Nyhoff drew strong condemnation from the community after a report published by the community watchdog outlet Open Vallejo said he had knowledge of an underground ritual within the Vallejo Police Department in which officers involved in fatal shootings bent the tips of their badges. The information was relayed to Open Vallejo by a source; Nyhoff himself denied any knowledge of the ritual.
Calls for his resignation intensified earlier this year when the Vallejo Police Department opened a community resource center on Mare Island without the approval of the city council. The opening of the center was seen by some to be a “first step” in the process of moving the Vallejo Police Department’s headquarters to Mare Island, which opponents say could send a chilling message to those who encounter it upon entering the city.
Nyhoff has been absent from city council meetings and City Hall in general since late May. His absence was initially colored by city officials as medical leave, though it came after a city employee filed an unspecified human resources complaint against him. Speculation began to swirl over Nyhoff’s fate when Open Vallejo published an image last Friday that claimed to show a moving van driving away from Nyhoff’s last known residence.
On Wednesday, independent reporter John Glidden obtained a draft separation agreement that put to rest any doubt about Nyhoff’s future in Vallejo.
The agreement, dated June 30 but not yet signed, calls for the City of Vallejo to pay Nyhoff to make two severance payments that collectively total over $408,000. Around $26,000 of his severance will be made as a pre-tax contribution into Nyhoff’s retirement account, the document said.
All told, Nyhoff stands to collect more than $577,000 in cash compensation and other perks upon his separation, which is effective once he signs the contract. He could collect even more cash if he is asked to appear as a witness in any litigation involving the City of Vallejo, the agreement said, with that compensation being paid out at a pre-determined hourly rate.
On Thursday, Vallejo Mayor Robert McConnell said he was in favor of the city’s desire to separate from Nyhoff, but felt the severance package was too generous.
“I am in agreement with the letter of resignation, and I do support that resignation,” McConnell said. “However, as to the compensation package, my vote is a definite and decided no, and will be.”
His perspective was supported by three public commenters who felt the city was giving up too much in order to end Nyhoff’s employment.
“I share the general sentiment of the community that it is a positive development to have Nyhoff gone, but he shouldn't get a payout,” Melissa Swift, a Vallejo resident who frequently attends and speaks at council meetings, said during a public comments period. “He's clearly out, so why are we bending over backwards to meet his demands?"
No one attempted to justify the payday amount Nyhoff will inherit, but some councilmembers said it was important to keep an eye on the ball. With Nyhoff gone, they said, the city would have the stamina and focus to move forward on development projects and other initiatives without the distraction his continued employment might bring.
“I look forward to the next chapter as we focus on fiscal responsibility, economic development, looking at how to grow our general fund revenues...and focusing on our development projects,” Pippin Dew, a Vallejo city council member, remarked. “That is going to require an intense and unified focus going forward.”
Following the council meeting, the City of Vallejo issued a press release in which they said Nyhoff had agreed to submit his resignation.
"I am grateful for the opportunity to have served the Vallejo City Council and community," he said.
The city is now expected to commence a search for its next city manager. Anne Cardwell will serve as the interim city manager while that search takes place.
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