The City of South Lake Tahoe accepts Nancy Kerry's resignation

The South Lake Tahoe City Council has accepted Nancy Kerry's resignation letter.

At the end of closed session Tuesday, March 6, the announcement was made.

"We have accepted the resignation of Nancy Kerry effective immediately and have accepted a settlement agreement with Ms. Kerry," said Mayor Wendy David.

"It's been an absolutely wonderful experience," Kerry told South Tahoe Now. "Such a great honor to be the city manager of this beautiful community."

In accepting Kerry's resignation the City Council also approved a settlement agreement, giving her the nine months of severance pay granted in her contract. She will be paid $176,321, which includes longevity pay, educational incentive, monthly car allowance and monthly contributions to Kerry's 401K. She will also be able to cash out her 339 hours of vacation leave as permitted by law as well as her sick leave balance of 520 hours.

As part of the agreement, neither the City or Kerry are allowed to say or write anything negative, defamatory, or critical of the other party, except if ordered to by a court order.

Nancy Kerry has worked with the City for ten years, and has been in the position of city manager since 2012. During that time she has worked to save the City millions in retiree benefits, something that has brought other cities to bankruptcy.

"Serving the City of South Lake Tahoe for nearly ten years, more than half of which were as City Manager has been a great privilege and honor. We, that is both the current and former councilmembers, as well as current and former employees, have accomplished a lot together. It is with that in mind that I leave the City with a great deal of things to be proud of knowing the City is in good financial shape, significant progress on a myriad of issues was made, innumerable projects were completed and with a team of highly professional employees, the City will continue to provide the best of service to the public. There is much ahead on the horizon that the City is well positioned to complete and I look forward to celebrating future successes," said Kerry in her resignation letter.

It has not been stated publicly why Kerry was placed on "indefinite leave" on February 6, except that it has been learned an outside company was hired to look into the environment at City Hall, and specifically Kerry. She has received all positive annual appraisals and even received a pay raise during the last review.

"I hope with the conclusion of my service to the City, you will join me in remembering these past five to ten years with the fondness that comes with building a high-performing team, achieving a long list of goals and doing so with a passion and heart for the people of South Lake Tahoe," said Kerry in her resignation letter.

South Lake Tahoe Fire Rescue Chief Jeff Meston has been appointed as the acting City Manager.