Today is the last day of employment for Sacramento City Manager Howard Chan.
The new City Council declined to renew Chan’s contract on Dec. 17 in a 6-3 vote. The new mayor, Kevin McCarty, was among those who rejected a proposed contract extension, even though he had expressed support for a one-year extension during his campaign. Councilmembers Lisa Kaplan, Phil Pluckebaum, and Rick Jennings voted to extend the contract.
At an annual salary of $400,000 per year, Chan is the highest-paid city manager in the state. His repeated salary hikes angered many residents, especially those who felt he was doing a poor job addressing key issues like crime and homelessness.
The City Council approved another raise for Chan last year but reneged after a public outcry. The controversy prompted new rules that prevent Sacramento managers from placing compensation-related items on the agenda without approval from the mayor or the Personnel and Public Employees Committee.
Chan’s future employment was a key issue in the 2024 mayoral race. Flojaune Cofer, who lost the race to McCarty, recently alleged that she was offered a $4,000 campaign contribution by an unnamed party in exchange for keeping Chan on board if elected.
“I was told this had to happen because the city required stability,” she said. “I want to make it very clear that, to my knowledge, Howard Chan was not aware of and did not condone that was offered to me on his behalf, but that it happened at all gives me serious concerns about who is pulling the strings, and what they’re willing to do or have already done.”
Chan received kind words from several city leaders at the Dec. 17 meeting. Councilmember Kaplan said Chan deserved better after his seven years of service to the city. Jay King, President of the California Black Chamber of Commerce, also praised Chan for his consistent “ability to address the unique needs of Sacramento.”
The city is expected to appoint an interim manager after the New Year.