Former City Manager Denies Allegations that he was Overpaid

Former City Manager Ralph Jaeck on Tuesday refuted city leaders' allegations that he was overpaid about $17,000 while employed in Millbrae from 2004 to 2008.

After the city found a discrepancy in Jaeck’s payments in March, while comparing the current city manager’s salary to the former, the city attorney notified him of the findings and asked him to explain the variance. Afterward, the city discussed the .

“Having a public forum was not something I was pleased about,” Jaeck said.

After some phone and email communication between Jaeck and the city, he stood in front of council members Tuesday night explaining the city's miscalculations in determining his salary and overpayment.

Jaeck said the city overlooked his deferred compensation for medical benefits, which was about $32,000 over the four years he was with the city, enough to counterbalance the alleged $17,913 overpayment.

Also, the accounting department did not properly differentiate between fiscal, yearly and payment calendars when examining his salary records.

In fact, Jaeck, working with five other former city employees, figures the city owes him money.

Although Jaeck said he is not going to pursue the additional money the city owes him, he was disappointed in how the city handled the situation.

He said he woke up on a Saturday morning to see a FedEx truck outside his house delivering the city attorney’s letter.

“It should have been done a different way,” Jaeck said. “Someone should have called me, instead of sending me a letter from the attorney.”

The formality and legality of the letter prompted him to seek a lawyer, but Jaeck said the matter could have been resolved amicably. 

City leaders said they now will review Jaeck’s findings and determine their next steps. 

“We are sorry that you were informed by the city attorney,” said Mayor Dan Quigg. “We did not want to make you feel threatened in any way.”