Desert Hot Springs city manager to retire

Public Record, The, Jun 14, 2005 by Davis, Rick

The debate surrounding Desert Hot Springs City Manager Jerry Hanson continued last week with an announcement that - under a new contract with the city - Hanson no longer is permanent city manager.

For the next six weeks (until Aug. 1), Hanson will be paid $150 an hour to be interim city manager. At that point, he will retire as a city employee and become a $125-an-hour consultant. The city is expected to have hired a permanent city manager by then.

Hanson has been the center of a controversy since March when an unidentified source leaked information to the media regarding Hanson's federal income tax W-2 form showing he received compensation of $322,809 from the city last year, substantially more than his $132,000 base salary.

Before becoming city manager in February 2003, Hanson served as city engineer - a job he kept after the promotion. City officials said Hanson's additional compensation for last year came from vacation, sick leave and holiday pay, plus severance pay he technically was entitled to even though his employment was not being terminated at that time.

"I don't want to be the focal point of polarizing the community," Hanson said last week in announcing the Aug. 1 retirement date.

One Hanson issue that remains unresolved is his role in some recent negotiations between the city and a developer.

The Riverside County Grand Jury has not decided if it will investigate whether Hanson acted unethically or committed wrongdoing when representing the city in negotiations involving a parcel that was near property owned by Hanson.