A former pro tem city manager for Riverside will be back on the clock Monday as the interim top administrator until the seat can be permanently filled, following the firing of City Manager John Russo.
Lee McDougal, who last served as interim city manager in early 2015, was unanimously selected to return in that capacity, at the end of a closed session meeting of the Riverside City Council Friday morning.
“Lee McDougal is a high-caliber individual who is very well equipped to continue the momentum we are experiencing in Riverside,” Mayor Rusty Bailey said. “We know from his previous service here that he is very capable and well-respected in our community.”
The 66-year-old UC Riverside alum, who spent 18 years as city manager for Montclair before retiring in 2010, will remain in the interim position until a permanent city manager is installed, according to city officials.
Recruitment for a new manager begins next week, and the council is putting a preference on hiring from within this time.
McDougal will be paid $135.53 per hour, compared to $139.16 per hour for Russo, whose termination was announced Tuesday after a closed-door performance review by the council. The vote to dismiss him was 4-3, but there were no public disclosures regarding the basis for his discharge.
Russo’s position became a bone on contention on Feb. 6, when a majority of council members approved a five-year contract extension adorned with increased benefits — two years before his existing contract was due to expire.
Bailey took issue with the action, particularly the rich flavor of the public servant’s new benefits package.
The mayor attempted to exercise his veto power over the council’s move, culminating in a tussle that pit him against the council and City Attorney Gary Geuss, who argued Bailey’s veto did not apply to charter officers, and it was the sole province of the council to decide Russo’s status.
Bailey stood by his veto authority, asserting that his oath prevented him from allowing such an “oppressive contract” to burden the city’s taxpayers.
The council retained Grass Valley-based law firm Colantuono, Highsmith & Whatley to render an independent opinion, which sided with Geuss. However, after it was learned the firm’s principal was a longtime acquaintance of Russo from his days as city attorney for Oakland, the opinion was called into question.
Bailey sued to have the matter resolved in Riverside County Superior Court. It’s unclear whether that suit will proceed now that Russo is no longer a municipal employee.
The five-year contract extension called for him to receive a city-backed $675,000 mortgage with a preferential interest rate, and according to published reports, he’s still eligible to receive it, even though he’s left city service.
The contract also stipulated that he and all of his immediate family would be entitled to free healthcare and dental care; his base salary, currently $415,988, would be automatically increased 3 percent annually; he would receive a full year’s severance pay if discharged for any reason; he would receive nine weeks of vacation and paid administrative leave; he would receive an annual $6,000 vehicle allowance; and he would be covered by a city-funded $700,000 life insurance policy for the duration of his service.