Audit Confirms Ex City Manager was Overpaid

An independent audit found that the City of Millbrae overpaid former City Manager Ralph Jaeck by about $17,000 – a figure he disputed publicly when city officials found the discrepancy about a year ago. 

The city realized the mistake in February 2011 when it compared Jaeck’s salary to the current city manager’s, Marcia Raines. The city attorney sent him a letter on Feb. 11, 2011 asking for reimbursement unless he could explain the accounting error during his tenure from 2004 to 2008. 

After the letter, Jaeck attended a public meeting to face the allegations. He expressed disappointment when he spoke publicly to the city in April 2011.

“It should have been done a different way,” Jaeck said at the 2011 meeting. “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. He concluded, with the help of his attorney, that the city actually owed him money – about $32,000 in deferred compensation for medical benefits, enough to counterbalance the alleged $17,000 overpayment.

However, Maze & Associates, an accounting firm hired by the city, found that Jaeck was wrong and the city’s overpayment estimate was correct. The exact amount was $17,421.46, mostly due to an additional check he received in 2008. As a result, Jaeck is also receiving an inflated pension. 

The Maze report was completed in November 2011, and the city has been discussing the matter in closed session since.

“Nothing has been decided, and it is still an on-going matter,” said Mayor Marge Colapietro.

It is unclear at this point if the city will pursue Jaeck for the $17,421.46. Jaeck’s attorney could not be reached for comment.