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June 10, 2025
ITEM TITLE
Employee Compensation and Benefits: Amended City Manager Employment Agreement Report Number: 25-0161
Location: No specific geographic location
Department: Human Resources
G.C. § 84308 Regulations Apply: No
Environmental Notice : The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.
Recommended Action
Adopt a resolution approving the Second Amendment to the City Manager’s Employment Agreement.
SUMMARY
On June 9, 2020, the City Council of the City of Chula Vista appointed Maria Kachadoorian as City Manager, effective June 20, 2020. The employment agreement was later extended through June 30, 2025, by City Council action on September 27, 2022. On May 20, 2025, the City Council met in closed session to discuss the City Manager’s p erformance pursuant to Government Code Section 54957 and as a result, the Council authorized and directed the City Attorney to prepare an amendment to the City Manager’s Employment Agreement, extending the City Manager’s appointment to October 2, 2025, and to provide for a Post Employment Health Plan. The City Council last approved an amendment to the City Manager’s Employment Agreement via resolution on October 8, 2024.
ENVIRONMENTAL REVIEW
The Director of Development Services has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines; therefore, pursuant to Section 15060(c)(3) of the St ate CEQA Guidelines, the activity is not subject to CEQA. Thus, no environmental review is required.
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BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not applicable.
DISCUSSION
On June 9, 2020, the City Council appointed Maria Kachadoorian as City Manager, effective June 20, 2020.
The City Manager’s employment agreement was later extended through June 30, 2025, by City Council action on September 27, 2022.
On May 20, 2025, the City Council met in closed session to discuss the City Manager’s performance pursuant to Government Code Section 54957 and as a result, the Council authorized and directed the City Attorney to prepare an amendment to the City Manager’s Employment Agreement, extending the City Manager’s appointment to October 2, 2025, and to authorize the transfer of the monetary value of sick leave hours in excess of 1,000 hours to be transferred to a Post Employment Health Plan (“PEHP”) at retirement. A PEHP is a tax -exempt Voluntary Employee’s Beneficiary Association (“VEBA”) Trust, which provides employee benefits pursuant to IRC Code section 501(c)(9). A PEHP creates a defined contribution health reimbursement program that allows for money to be set aside to pay for futur e medical expenses. A PEHP may be funded with Employer contributions, mandatory Eligible Employee contributions or a combination of both on behalf of the eligible employees in a manner permitted under the Plan . If this item is approved, the City will set up a plan for the City Manager position to allow for PEHP contributions as outlined in the Second Amendment to the City Manager’s Employ ment Agreement. The City Council last approved an amendment to the City Manager’s Employment Agreement via resolution on October 8, 2024.
The Second Amendment to the City Manager’s Employment A greement is attached to this staff report as Attachment A.
DECISION-MAKER CONFLICT
Staff has determined that the action the item is not site specific. Staff is not independently aware and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter.
CURRENT-YEAR FISCAL IMPACT
There is no current-year fiscal impact. The previous contract ended June 30, 2025, and all costs of the prior contract are included within the fiscal year 2024-25 budget.
ONGOING FISCAL IMPACT
The projected fiscal impact for fiscal year 2025-26 is estimated up to $78,000. These costs are anticipated to be absorbed within the fiscal year 2025-26 budget appropriations.
ATTACHMENT
1. Second Amendment to the City Manager’s Employment Agreement Staff Contact: Tanya Tomlinson, Director of Human Resources/Risk Management