Politics & Government

A $19K raise and no end date: Inside Hilton Head’s contract with interim leader Gruber

For a change, Hilton Head Island residents got a peek at the contract proposed for the person who will run the town’s government come Jan 1.

The island’s Town Council discussed its contract with Josh Gruber on Tuesday in open session — a change from the usual procedure, in which personnel matters are discussed in closed-door executive session.

Gruber’s contract, which the council approved, outlines the plan for him to be interim town manager once Steve Riley retires on Dec. 31 after 29 years with town government. Gruber currently serves as assistant town manager.

But there’s more to the contract than his $178,130 annual salary. It includes some caveats that point to the Town Council’s plans for when it attempts — again — to select a permanent town manager.

Last summer the town hired Colin Baenziger & Associates to perform a nationwide executive search for Riley’s replacement.

The firm came back with five candidates the Town Council was set to interview in early October, including Gruber. Two immediately withdrew their names from consideration for unrelated reasons and an alternate chose not to be considered. The town suspended the search, and Baenziger withdrew his firm from doing any further work with the town because “essentially we had a difference of opinion on how the search would proceed.”

That means the town will need to hire a new search firm — or commit to performing the search using its in-house human resources director — early next year. At its workshop Jan. 28-29, the council plans to discuss how to start its search.

Hilton Head’s town manager will oversee the town’s direction, including on controversial issues such as taxes for law enforcement, how U.S. 278 and the Hilton Head bridges will be configured, and whether tourists pay for parking at the beaches.

PGA Tour commissioner Jay Monahan, from left, talks with RBC Heritage tournament director Steve Wilmot, Hilton Head assistant town manager Josh Gruber, town manager Steve Riley and Mayor John McCann outside the clubhouse at Harbour Town Golf Links on Wednesday.
PGA Tour commissioner Jay Monahan, from left, talks with RBC Heritage tournament director Steve Wilmot, Hilton Head assistant town manager Josh Gruber, town manager Steve Riley and Mayor John McCann outside the clubhouse at Harbour Town Golf Links on Wednesday. Stephen Fastenau sfastenau@islandpacket.com

Here’s what to know about Gruber’s interim contract:

He won’t apply for the full time job

When the Town Council begins its search early next year for the new town manager, the contract states that Gruber agrees “not (to) make an application for the position.”

Gruber has previously told The Island Packet he does not plan to apply for the job.

But that doesn’t altogether eliminate him from the possibility of becoming town manager.

The Town Council can appoint whomever it wants, according to Town Human Resources Director Angie Stone and the town code.

“Town Council determines how to identify and vet candidates for the position,” she said. “Ultimately, they can appoint whoever they believe will be the best person for the job, with or without that person applying for the position. Often, a Town Manager search involves an application period, while in other cases a Town Council decides to make an appointment without conducting an external search.”

In its last search, the council chose an executive search firm that recruited candidates to apply.

He will get a $19K raise

While he’s acting as interim town manager, Gruber will be paid bi-weekly at an annual salary of $178,130.

Currently, Gruber is paid $159,045 annually as assistant town manager, the contract says.

Town Manager Riley’s base salary, not including his benefits, is $189,426, according to the town’s Human Resources department.

The town’s job posting says the salary range for a new hire is between $158,000 and $245,000.

Steve Riley
Steve Riley Town of Hilton Head Island

There isn’t an end date

Unlike typical contracts, there isn’t an expiration date on Gruber’s contract as interim town manager.


It says it will “continue until such time as a permanent Town Manager assumes day to day operations for the Town.”

He’ll go back to his old job

Once a permanent town manager is named, the contract says Gruber will return to his duties as assistant town manager and resume his former salary.

Some Town Council members were concerned that this provision would bind the new town manager to keep Gruber on as an assistant.

To eliminate that issue, council member Bill Harkins added a sentence to the contract Tuesday that reads “Upon completion of the town manager search, the Deputy Town Manager will report directly to the Town Manager and will continue to do so at the pleasure of the Town Manager.”

Retiring Town Manager Riley said the addition was “stating the obvious,” but the amendment was unanimously approved.

An update from Josh Gruber published to the Town of Hilton Head Island’s Facebook page.
An update from Josh Gruber published to the Town of Hilton Head Island’s Facebook page. Facebook

This isn’t the first time Gruber’s negotiated a contract for himself

Gruber was an assistant county attorney for Berkeley County before he became Beaufort County’s attorney in 2011.

In 2017, he was named interim county administrator by the county council. After a convoluted voting process, he was ultimately not named to the permanent county administrator position.

Following his departure from Beaufort County, Gruber got into hot water after he wrote a $24,000 contract for himself to provide consulting services to the county. The issue was raised with the S.C. Ethics Commission, but was ultimately dismissed. Gruber became assistant town manager for the Town of Hilton Head Island in summer 2018.

Former Interim Beaufort County Administrator Josh Gruber was issued a hearing notice by the S.C. Ethics Commission regarding a consulting contract he was awarded after he left the position to work as Hilton Head’s assistant town manager.
Former Interim Beaufort County Administrator Josh Gruber was issued a hearing notice by the S.C. Ethics Commission regarding a consulting contract he was awarded after he left the position to work as Hilton Head’s assistant town manager. Staff photo

He won’t be the only interim leader

Right now, two of the county’s most influential public positions — the county administrator and Hilton Head’s town manager — are open.

Riley is retiring, but then-County Administrator Ashley Jacobs was forced to resign last month by the County Council.

Beaufort County has named former planning director Eric Greenway its interim administrator, where he will be paid a salary of $190,000 until June 30 or until council finds a permanent administrator.

County taxpayers are on the hook for $380,000 in administrator salaries, because on top of Greenway’s pay, the county is also paying Jacobs her full $190,000 salary through Oct. 19, 2021 — and her full benefits until she is reemployed — which The Island Packet has reported is part of her separation agreement.

This story was originally published November 16, 2020 at 4:40 AM.

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Katherine Kokal
The Island Packet
Katherine Kokal graduated from the University of Missouri School of Journalism and joined The Island Packet newsroom in 2018. Before moving to the Lowcountry, she worked as an interviewer and translator at a nonprofit in Barcelona and at two NPR member stations. At The Island Packet, Katherine covers Hilton Head Island’s government, environment, development, beaches and the all-important Loggerhead Sea Turtle. She has earned South Carolina Press Association Awards for in-depth reporting, government beat reporting, business beat reporting, growth and development reporting, food writing and for her use of social media.
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