Issue date: April 21, 1999
By RENEE BATTI
An unusual agreement that gives Atherton's police chief personal use of a luxury, gas-guzzling sport utility vehicle -- with the town paying the bulk of the costs -- has unleashed a high-octane debate over spending among town residents and officials.
The town is paying 70 percent of the lease for a new, 1999 Toyota Land Cruiser which, according to the lease agreement, is primarily for the personal use of Police Chief Steve Cader. It also has paid about $3,766 in fees and options, including: a $500 deposit and $330 in taxes; $2,117 to furnish the vehicle with emergency equipment; $1,467 for a grill guard and a drop hitch; and $182 to install a trailer hitch.
The 60-month lease with Toyota 101, signed in January, amounts to $39,475 in payments -- which include $4,000 paid up front by anonymous donors. According to a usage agreement between the town and Chief Cader, the vehicle is part of the police department's fleet, and "will be made available to the (department) during times of inclement weather and/or local disasters."
The lease agreement was approved by City Manager Don Guluzzy, who said City Council approval was not required because the town was not buying the vehicle.
While Mr. Guluzzy and other town officials insist the arrangement is only a variation on the widely accepted practice of providing a vehicle for top city staff members such as city managers and police chiefs, at least one City Council member says it is an extravagance and raises a number of questions about town procedures.
"I'm charged with taking care of the town's money and to see that we operate in a frugal fashion," said City Councilman Bill Conwell, who is asking for a review of the lease arrangement at the May council meeting. With the town asking residents to consider an increase in their parcel taxes or a bond measure in the near future, the matter has caused some residents to take a closer look at how the town is spending its money, he said.
"I've had people come up to me, saying 'this time we're going to have to take a second look'" at the town's plea for more funds, Mr. Conwell added.
Compensation package
"I don't care if the chief is driving a Rolls Royce, if it doesn't cost us any more," Mayor Nan Chapman said last week.
Mayor Chapman also noted that the town needs to have a four-wheel drive vehicle in its fleet in case of emergencies, such as the February 1998 flooding that left some residents stranded in their homes.
A staunch defender of Chief Cader's work, Mayor Chapman expressed frustration over the criticism about the vehicle. "I don't understand some of the animosity and jealousy over this."
Mayor Chapman and Mr. Guluzzy also defended the lease as a legitimate part of Chief Cader's total compensation package. "We have limited resources to pay people," said Mr. Guluzzy. "I have to retain good people; this is a tough market for us to lose someone and recruit someone."
Councilman Conwell agreed that an employee's total benefit package must be considered. But he added that the chief's $99,000 annual salary plus a variety of benefits add up to about $141,000 a year in compensation, which he believes is adequate.
He also said the town is "treading on a borderline situation" with the acceptance of donations for the vehicle.
City Manager Guluzzy said the town often receives donations from residents to help meet expenses. He said the town's only other four-wheel-drive vehicle was paid for in large part by private donations.
The $4,000 in donations for the chief's Land Cruiser came from residents who want to remain anonymous, Mr. Guluzzy said, adding that he and Chief Cader are possibly the only people who know who contributed the funds.
Mr. Guluzzy dismissed concerns that the donations might be improper because the police chief is the primary beneficiary as "baloney."
"We're professionals here," he said.
Other costs
Mr. Guluzzy and Chief Cader said that the chief pays for gas used on personal, out-of-town trips, and that those trips are limited to an agreed-upon distance from the town. Chief Cader's contract states that he can use the town-provided vehicle for personal use up to 75 miles in one direction, with any exceptions needing the city manager's approval.
Seemingly taken by surprise by the criticism surrounding his new vehicle, Chief Cader noted that "it's very standard for chiefs to have use of a car."
"This has been made to sound like some nefarious thing," he said. "There's nothing underhanded or dastardly" about the arrangement, he added, noting that he pays 30 percent of the lease -- or $175 a month.
Chief Cader also said that he did not solicit any donations for the vehicle.
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