Fact Check: “Eighteen-Month Severance Packages Are . . . Common at the City of Redding.”

The Claim:

“Eighteen-month severance packages are . . . common at the City of Redding.”

The Context

The Shasta County Board of Supervisors recently discussed severance packages for two top executive positions: CEO David Rickert and Public Health Officer James Mu. During those discussions county board supervisors Tim Garman and Mary Rickert questioned the length of the severance packages being offered.

On December 5, Garman specifically expressed concern that the length of the eighteen-month severance being offered to CEO Rickert was “unheard of” and expressed concern about how other county employees would feel about the size of the severance package saying, “You’re going to have a bunch of other employees thinking, ‘I want that stability too’.”

Supervisor Patrick Jones responded to Garman and Rickert by saying that similar severance packages were common for the City of Redding during his time as a council member. Jones served on Redding’s council from 2006 to 2014.

Our Analysis:

“Eighteen-month severance packages are . . . common at the City of Redding.”

This claim is false.

Here’s How We Know

Supervisor Jones declined to comment for this story, but Redding City Manager Barry Tippin told Shasta Scout that since 2008 when Tippin began his work in the city manager’s office, he is unaware of any “severance pay allowance in excess of 6 months.” Tippin also said director-level positions typically have three months of severance pay in their contracts but clarified that both his position and the city attorney position have a 6-month severance pay allowance if they are released without cause. 

We also compared Dr. James Mu’s recent job offer, which included a 9-month base salary severance package with that of his his predecessor, Dr. Karen Ramstrom. Ramstom, who was terminated without cause by the board in 2022, had a 90 day base salary severance package.

CEO Rickert’s updated offer approved on December 5, differs from both public health officer contracts because it includes a set term ending on December 31, 2026. California is an at-will state, meaning that anyone can be terminated from a job at any time for almost any reason. But if an employee’s contract has a term limit, as CEO Rickert’s does, and time is left on that contract when they’re terminated, they may be eligible to have the remainder of that contract paid out. Under state law the amount of time that can be paid out is limited to 18 months.

For example, if CEO Rickert were to be let go next month without cause, he would be eligible for a payout of 18 months of his regular salary amount. However, if CEO Rickert is fired without cause in November of 2026, he would only be eligible to receive a pay out of about a month of pay since his contract would have ended in December regardless.

The previous CEO, Mathew Pontes had a similar term limited contract but unlike CEO Rickert, Pontes contract included an additional severance clause that capped his severance pay at 52 weeks (1 year).

What Else You Should Know:

CEO Rickert’s new employment contract was approved during the board’s December 5 meeting, with only Supervisor Garman voting against it. Rickert is now eligible to receive a  severance payout of almost half a million dollars if the county decides to terminate his three-year contract with 18 or more months remaining.

If you’ve heard a statement in public meetings that you’d like to see fact-checked, let us know. Email: editor@shastascout.org