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Staff Report
City Council
Item No. 3.E
Meeting Date: June 14, 2023
From: Charles McClendon, City Manager
Title: Amendment to the City Manager Contract
City Council
RECOMMENDATION:
To approve the seventh amendment to the City Manager contract resulting in an annual salary of $233,886 effective July 1, 2023 and an annual salary of $240,704 effective January 1, 2024.
BACKGROUND:
On August 10, 2022, City Council approved the sixth amendment to the employment contract with the City Manager.
On February 22, 2023, City Council conducted the annual performance evaluation with the City Manager.
DISCUSSION:
This seventh amendment to the agreement makes the following changes:
Section 4.a. Salary. Section 4.a. “Salary” of the Employment Agreement is amended to read as follows:
“4.a. Salary. Employee shall be paid an annual base salary of $233,886 commencing July 1, 2023, which annual base salary shall increase to $240,704 commencing January 1, 2024. Payments shall be made in accordance with the City’s normal payroll practices and procedures. Employee’s salary may be adjusted at the sole discretion of the City Council. Any increase or decrease is not effective until the Parties draft and sign an amendment to this Agreement that states the new annual base salary and the effective date of that new salary which is adopted by the City Council at a duly noticed public meeting. If the Employee possesses a Master’s Degree he is entitled to an educational stipend equal to five- percent (5%) of base salary pursuant to the Executive Policy, which is subject to change at the discretion of the City Council.
Section 4.c. Employee Compensation. Section 4.c. “Deferred Compensation” of the Employment Agreement is amended to read as follows:
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“4.c. Deferred Compensation. Employee shall be eligible to participate in a deferred compensation (457) plan selected by Employee from providers offered by the City. The City will make, on an annual basis, prorated per pay period, a total contribution of $30,000, subject to any applicable IRS rules and regulations.
Employee may make additional contributions as allowed by the selected plan and by applicable IRS rules and regulations.
FISCAL IMPACT:
The total cost of the salary increase for FY2023-2024 is $10,312.50. The cost of the deferred compensation increase for calendar year 2023 is $13,570.
FIVE-YEAR STRATEGIC PLAN:
N/A
ATTACHMENTS:
City Manager Employment Agreement - Seventh Amendment