HOWELL – Members of the Howell Township Council have voted 3-2 to adopt an ordinance establishing a revised salary range for the township manager.
The vote came during the council’s June 11 meeting. On a motion to adopt the ordinance, Deputy Mayor Evelyn O’Donnell, Councilman Thomas Russo and Councilwoman Pamela Richmond voted “yes.” Mayor Theresa Berger and Councilman John Bonevich voted “no.”
Officials said the legislation amends Howell’s salary ordinance to reflect compensation set forth in a contract that was negotiated with Township Manager Brian Geoghegan during 2018.
Geoghegan has been Howell’s township manager since the fall of 2017. His base salary for 2018 was $135,000. His salary was subsequently negotiated to $160,000 in a contract that was signed on Nov. 20, 2018, according to municipal officials.
Richmond, Russo and Bonevich joined the council in January, after the township manager’s salary increase had been negotiated by members of the previous council whose terms ended in December. The higher salary required the adoption of an ordinance.
Geoghegan does not accept medical benefits from Howell, which would cost the township $30,000, according to Township Attorney Joseph Clark. In lieu of accepting the benefits, Geoghegan receives a $10,000 stipend, for a net savings to Howell of $20,000, Clark said.
Between the ordinance’s introduction and adoption, Bonevich raised questions about the payment being made to the township manager in lieu of his acceptance of health benefits.
During the June 11 public hearing on the ordinance, resident Tina Smilek said the township manager’s contract is the reason New Jersey has problems with pension and healthcare laws.
“When you circumvent the laws and you play with words in order to get your way … What happens is what we are facing today in New Jersey, which is pensions are failing, healthcare is failing and we are having problems,” Smilek said.
She also took issue with compensation being paid to an individual in lieu of accepting health benefits.
Clark responded, saying, “(Geoghegan) is being paid income, which he can allocate how he sees fit and he has indicated in his contract that he is going to allocate a portion of that income for the payment of those benefits.”
After more discussion, Clark said if municipal officials are wrong about the $10,000 payment, Geoghegan can accept the township benefits, which will cost Howell more money.
“Between the two, saving the township money or spending taxpayer money, it seems like a worthwhile endeavor to do what we are doing,” Clark said.
Before the council members voted on the ordinance, O’Donnell said, “This contract is already in effect. It was signed in effect by the full council, including the mayor, already, so this is not something that is new, it is already in effect and has been.
“Regarding the $10,000 Mr. Geoghegan is getting as part of his package, although it is income, the other option is for him to take our health benefits for $30,000. I think we would be punished by the public to even consider that,” O’Donnell said.
“But I have to say in all honesty that this contract has already been signed by the mayor. I sat on the council with her at the time, when this council sits down together they have to abide by the contract that has been signed. So no one sitting here should really vote against it because we should all be in favor of a contract that is in effect by the very council on which they serve,” O’Donnell said.
Richmond said the issue was not about a contract that was negotiated. She said it was about an ordinance that memorializes a contract that was negotiated in good faith in 2018.
Bonevich said, “we are dealing with this contract and it was prior to us (Bonevich, Richmond and Russo joining the council) correct? But (the contract) states the council may at any time conduct a review to agree to any other salary permitted under the township salary ordinance.”
Clark said if the $10,000 payment is found to be invalid, the decision would not void the contract and the township manager could elect to receive health benefits from Howell.
Russo said the council’s job is to avoid litigation and he asked Clark what would happen if the council members failed to adopt the ordinance.
“(Litigation) is what would happen. I cannot speak for Brian (Geoghegan), but obviously we would have a contract that has been breached … We will certainly incur a tremendous amount of legal fees and at the end of the day I have a feeling we are going to be pretty much right where we are,” Clark said.
He said the manager’s contract is a one-year agreement and said there is less time left on the contract than the time that has already passed.
“At some point negotiations are going to have to take place again and probably relatively soon,” Clark said.
Following the meeting, Berger explained her “no” vote on the motion to adopt the salary ordinance after signing the manager’s contract in the fall of 2018.
“I did vote yes for (the contract) and I signed it. (The) previous council majority tabled the vote for the new council (in 2019). When new information came to light, the contract was not yet ratified, so I changed my vote. Our manager is currently in (a state plan) and under a state statute he is not entitled to a $10,000 health insurance buyout. That needs to be reviewed and corrected when we review his contract,” Berger said.
