By Hector Gonzalez
Staff Writer

June 1, 2015 -- Rick Cole will move to Santa Monica when he takes over as its new city manager with help from a contract package that includes a low-interest home loan, among other perks.

Cole will be formally introduced at the City Council's next meeting June 9. A reception for the  new  city manager will be held at City Hall before the meeting, said Mayor Kevin McKeown.

Council members last week approved the terms of Cole's contract, which will pay the former city manager of Ventura and former deputy L.A. mayor  $329,424 a year, plus health benefits and 21 days of immediate vacation pay.

Cole's salary will be the same as outgoing Interim City Manager Elaine Polachek, City Attorney Marsha Jones Moutrie told Council members. It's also “substantially less” than former City Manager Rod Gould's annual salary, McKeown noted.

“Because the council prefers, as does the community, as does the city manger, that the new city manager should live in the City,” said Moutrie, Cole will receive money to cover his relocation costs and as much as $2,000 a month in rental allowance for up to seven months.

In addition, the City will provide a home loan at 3 percent interest for Cole to purchase a residence in Santa Monica not to exceed $1.1 million, Moutrie said addding that the two previous manager has received a similar contract. The new city manager will be responsible for paying at least 10 percent of the loan, she added.

If Cole resigns or is terminated, he must repay the city the full cost of the loan within two years, “which hopefully will be many years away,” said Moutrie.

The package also includes nine months of severance pay, she said.

Council members approved the contract unanimously, although Council members Pam O'Connor and Terry O'Day were absent for the vote, which came at around 1:30 a.m. Friday following a marathon budget study session and public hearing.

Before serving as city manager in Ventura, Cole was city manager of Azusa, where he helped revitalize the city's downtown, and he served for 12 years on the City Council in Pasadena, his hometown, including two years as mayor.

In July of last year, L.A. Mayor Eric Garcetti recruited Cole as deputy mayor of budgets and innovation.