Chief to receive $250K payoff

Newport Beach Police Chief John Klein will receive more than $250,000 from the city in a lump-sum payment after he retires as the department’s leader July 10, according to details of his signed agreement.

Klein will be paid $250,079.22 from Newport Beach — a sum of his accrued leave time, guaranteed six months severance listed in his contract with the city, and pro-rated 58 days of work he is owed for leaving before the usual 90-day notice.

City officials announced Tuesday Klein has decided to step down as chief amid a union-push to have the city investigate past promotions — including Klein’s. The city attorney recently acknowledged that Klein’s promotion to chief was improper because the recruitment was exclusive to city employees, violating a city ordinance that requires officials to look at outside candidates. The city has hired an independent investigator to evaluate how promotions are determined and recommend changes.

In Klein’s Mutual Separation Agreement with the city, he’ll receive $137,924.11 in severance pay for six months, $68,656.16 in accrued leave time and $43,498.95 he’s due for leaving 58 days earlier than the contracted 90-day period.

The city reluctantly accepted Klein’s decision to leave.

“Neither John Klein nor the city of Newport Beach desire to end the employment relationship,” City Atty. David Hunt said in a prepared statement. “Both have come to the conclusion, however, it is in the best interest of the Newport Beach Police Department that a new chief be appointed for the department.”

Following Klein’s departure July 10, the department will bring in an interim chief from outside the department, officials said. The interim chief will remain on for three to four months while City Manager Homer Bludau and his replacement (he’s retiring in September), search for a permanent replacement.

Klein earns well more than $200,000 a year in salary and benefits, according to last year’s budget. City officials said his pension is near 90% of his annual compensation.

Klein said his departure will hopefully bring the department together faster. The department has been in turmoil in recent months, with the city losing a $1.2-million lawsuit to a sergeant who was discriminated against and one recently retired lieutenant insinuating Klein’s rise was preordained in a claim he filed with the city.

“I looked at the situation and for me it’s important for the department to move beyond the current issues as soon as possible,” Klein said Wednesday. “Clearly, all the issues we had going on was a distraction.”

In recent months both the Police Employees Assn., representing officers and non-sworn employees, and the Police Management Assn., representing sergeants and the higher ranks, have questioned the chief’s ascension to top cop. Klein was sworn in as chief in June 2007.

He’s been with the department for nearly 30 years.

The Police Management Assn. released a statement Wednesday in response to Klein’s announcement to retire:

“The Police Management Assn. expresses [its] gratitude for Chief Klein’s leadership over the last two years and wishes to honor his nearly 30 years of service with the Newport Beach Police Department and the community of Newport Beach. John Klein’s qualities will be remembered for his many strengths and contributions to this organization. Chief Klein was known for his straightforward and sensible approach to issues and his heart of service. Although his retirement was not anticipated at this time he will be greatly missed. We wish him and his family the very best in the coming years.”

Klein said he has no immediate career aspirations in sight.

“I plan on spending more time with my family throughout the summer. I’ve been away the last 30 years and they certainly deserve more of my time,” he said.

“I spent 30 years of my career here; it’s the only place I’ve worked in. I couldn’t have picked a better community or city to work in. The support is tremendous ... I’m proud of everything I’ve done and the time I’ve spent with and I’m proud of the people I’ve had to work with.

“I couldn’t have asked for a better career that what I’ve had here.”

Background: Amid an investigation into the police department’s promotional process and questions of his leadership, Police Chief John Klein announces his retirement to help the department move on.

The Latest: The city has requested Klein to stay on until July 10 and will pay him more than $250,000 in severance.

What’s Next: City Manager Homer Bludau will choose an interim chief from outside the city to head the department in the coming months while the investigation continues and he works with his eventual replacement in September to choose a new, permanent chief.