Steven Thompson may not start until as late as May 19, but he is now bound to the city of Marco Island.

Thompson’s contract to become the new city manager was approved unanimously Monday night by Marco Island City Council, including a pay rate of $160,000 a year. Council voted to move forward with contract negotiations with Thompson on April 15 following a two-day interview process with five candidates.

Though council pulled the contract approval from its consent agenda, it garnered little discussion before approval.

Council wanted to discuss the contract publicly so it could be aired before residents in the audience and those watching on television. It was the last step in a long, highly publicized process of advertising, interviewing and negotiating to bring Thompson to Marco Island.

Council Chairman Bill Trotter participated in negotiations with Thompson, City Attorney Alan Gabriel and search consultant Tom Freijo.

“In talking to Mr. Freijo, he seemed to think the whole thing was a ‘moderate’ package,” Trotter said. “It looked like the whole package was very reasonable to us.”

The former Deltona city manager’s pay rate will start just barely below that of former City Manager Bill Moss, who was making $161,000 at the time he left Marco Island for the city of Naples. Thompson’s last salary was $145,500.

Thompson’s contract also allows for an additional 38 percent of his salary in lieu of benefits for deferred compensation, health and dental insurance and retirement contributions. That clause, which means an additional $60,800 to Thompson, was also in Moss’s contract with Marco Island.

The agreement states that Thompson will begin full-time employment no later than May 19. Parks and Recreation Director Dana Souza will continue serving in the capacity of interim city manager until Thompson begins work in the city.

He is to be paid a lump $7,500 fee to cover relocation expenses, and can claim a $1,500-a-month temporary housing stipend for up to six months after he starts the job.

He will receive a $500 monthly motor vehicle allowance and an additional $100 per month cell phone allowance.

Thompson is required by the contract to submit at least 60 days notice upon his resignation. Should City Council fire Thompson in absence of any contractual violations, he can also collect nine months of salary, or $120,000 before taxes.

Councilor Jerry Gibson asked about how the city came to that figure, pointing out that Moss’s contract provided for a six-month salary pay-out in the event of termination.

Trotter said Thompson requested a 12-month salary pay-out if he was terminated, and that the nine-month clause was meant as a compromise between Thompson’s request and the city’s own precedent.

Thompson, who left Deltona just after the start of the year after submitting his resignation, is currently living in Virginia Beach, Va., his last city before coming to Florida to work in Deltona in 2006.

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