________________________________________________________________________________________ Options:
1. Provide direction to staff
________________________________________________________________________________________ Subcommittee Recommendation:
Negotiate with the County to eliminate or at least significantly lower the 50 moderate units. ________________________________________________________________________________________ Budget/Financial Impact:
Possibility of losing future CFH funds from the County. ________________________________________________________________________________________ Attachments:
1. Draft MOU Transfer Agreement
2. ABAG Transfer Request letter
3. Letter from Tennis Wick, PRMD
175
1 MMEMORANDUM OF AGREEMENT
BY AND BETWEEN COUNTY OF SONOMA and CITY OF CLOVERDALE
REGARDING TRANSFER OF REGIONAL HOUSING NEEDS ALLOCATION This Memorandum of Agreement (“Agreement”) is made and entered into by and between the County of Sonoma (“County”) and the City of Cloverdale (“City”) (jointly the “Parties”), pursuant to Government Code section 65584.07.
RECITALS
A. Government Code section 65584.07(a) provides a voluntary process by which a county may reduce its assigned share of the regional housing need allocation (RHNA) by transferring a portion of its RHNA share to one or more cities within that county.
B. Government Code section 65584.07(a) further provides that a county and city may request such a RHNA transfer during the period between adoption of a final RHNA and the due date of the housing element update. The Association of Bay Area Governments adopted the final RHNA for the 2023-2031 housing element cycle (known as the “6th Cycle”), on December 16, 2021. The due date for the County’s and City’s updated housing elements is January 31, 2023. Accordingly, the request for RHNA transfer from the County to the City is timely.
C. Government Code section 65584.07(a)(4) provides that the council of governments “shall approve” a proposed RHNA transfer if it determines that the city has agreed to increase its RHNA share by an amount equivalent to the decrease in the county’s RHNA share, that the transfer would occur within the county, and that the county’s share of low-income and very low-income housing will be reduced by an amount proportional to the reduction in the county’s share of moderate- and above moderate-income housing. The City’s voluntary participation in this Agreement demonstrates its voluntary acceptance of an increase its RHNA share equivalent to the decrease in the County’s RHNA share. As set forth below in the table following Section 1, the County’s share of low-income and very low-income housing would be reduced by 1.45%, in proportion to the 1.45% reduction in the County's share of moderate- and above moderate-income housing.
D. In 2021, the City annexed the site of the Baumgardner project, consisting of 28.7 acres and 231 units, including 194 affordable units. The City has also approved, and anticipates imminent LAFCO approval of, an additional annexation that includes the site of the Bi' Du Khaale Senior Housing project, which includes 24 affordable units. These sites were not incorporated into the methodology used to allocate the City’s share of 6th Cycle RHNA.
E. The County’s inclusionary affordable housing and workforce housing programs collect inlieu fees from development occurring on unincorporated lands. These monies are deposited into the County Fund for Housing (CFH) and administered by the Sonoma County Community Development Commission for the furtherance of affordable housing within the County. The County Board of Supervisors also contributed $3 million from its general fund and $1.6 from its TOT funds into the CFH.
F. In the current (2015-2023) housing element cycle, CFH funds were made available to affordable housing projects located within cities. However, due to the burden of meeting the 750% increase in the unincorporated County’s RHNA for the 6th Cycle, in the 6th Cycle 176
2 the County plans to discontinue CFH funding for affordable projects within an incorporated city unless that city has executed a RHNA transfer agreement with the County.
G. Within the current 2015-2023 planning period, projects in the City received substantial CFH funds. The Cherry Creek affordable housing project, containing 23 units, was awarded $262,145 in CFH monies. There is continuing need for this important affordable housing revenue source to aid the City in reaching its affordable housing goals.
H. City desires to enter into this Agreement to ensure that its 2023 Housing Element Update considers the units in the above annexations. City also desires to enter into this Agreement to maintain its eligibility to receive funding from CFH. City acknowledges that in entering into this Agreement it ensures that it will be eligible to receive CFH funding for affordable housing projects while also achieving RHNA credit for production of affordable units.
I. County desires to transfer a portion of its assigned RHNA to City to reduce its 3,881-unit RHNA share for the 6th Cycle and to aid it in meeting its RHNA obligations. There is little available land in the unincorporated County that is located within urban service areas and suitable for affordable housing development. Reducing its RHNA furthers the County’s long-term policy commitment to city- and community-centered growth and protection of agricultural lands.
NOW, THEREFORE, in recognition of the recent and anticipated future annexations discussed above and the County’s continuing contributions to provision of affordable housing within the City, and in keeping with the Parties’ long-term policies supporting city-centered growth, the Parties agree as follows:
TERMS
1. For the 6th Cycle, County and City agree to reduce the County’s assigned RHNA share by 150 units and increase the City’s assigned RHNA share by 150 units. Consistent with Government Code section 65584.07(a), the County's share of low-income and very low-income housing has been reduced only in proportion to the amount by which the County's share of moderate- and above moderate-income housing is reduced, as set forth in the table below.
Very Low
Income
Low
Income
Moderate
Income
Above
Moderate
Income
Total
Cloverdale Original RHNA
Allocation 74 43 45 116 278
Unincorporated Sonoma County
Original RHNA Allocation 1,036 596 627 1,622 3,881
Percent of RHNA Transferred to
City 1.45% 1.45%
RHNA Units Transferred to City 12 12 0 33 57
Cloverdale Updated RHNA
Allocation 86 55 45 149 335
2. Accordingly, with ABAG’s approval, City’s RHNA allocation will increase by 57 units to 335 total units, and County’s RHNA allocation will decrease by 57 units to 3,824 total units. In implementing this Agreement, the Parties agree to take all steps reasonably necessary to comply with Government Code section 65584.07 and any other applicable statutes, including 177
3 but not limited to providing the documentation required by Government Code section 65584.07(d) to ABAG and to HCD and any other agency, if required. The Parties agree to work together to obtain any necessary approvals, from ABAG or any other entity, that may be required to effectuate this Agreement.
3. The Parties shall use the revised RHNA allocations in the preparation and adoption of their 6th Cycle Housing Elements.
4. City's obligations under this Agreement are conditioned on County's compliance with the following requirements: (1) County shall not require further transfers of its RHNA share to City due to annexation of either of the projects noted in the recitals to this Agreement; and (2) County will continue to facilitate funding from CFH to subsidize development of affordable housing intended by City to satisfy City’s increased RHNA obligation resulting from this Agreement.
IN WITNESS WHEREOF, this Agreement shall be binding and effective as of the date it is executed by both Parties.
COUNTY:
County of Sonoma
By: __________________________________ Date: October _________, 2022 Tennis Wick, Director
Permit and Resource Management Department
CITY:
City of Cloverdale
By: __________________________________ Date: October _________, 2022 David Kelley
City Manager
178
(County letterhead)
Gillian Adams, Principal Planner
Association of Bay Area Governments (ABAG) Executive Board Bay Area Metro Center
375 Beale Street, Suite 800
San Francisco, CA 94105-2066
September 30, 2022
RE: Request for RHNA Transfer per California Government Code Section 65584.07 Dear Gillian,
Sonoma County congratulates ABAG on its December 16, 2021, adoption of the Final Regional Housing Needs Allocation (RHNA) Plan: San Francisco Bay Area, 2023-2031, and is writing to request ABAG's approval of RHNA Transfers between the County and the City of Cloverdale pursuant to Government Code Section 65584.07.
As ABAG staff and board members are aware, Section 65584.07 states that council of governments shall reduce the RHNA of unincorporated counties if one or more cities within the county agree to increase their shares by an equivalent amount. These RHNA "transfers" are to occur between adoption of the final RHNA (in this case December 2021) and the due date of the housing element (in this case January 2023) and were called out specifically in ABAG's staff reports on appeals submitted by unincorporated counties (Contra Costa, Sonoma, Marin, and Santa Clara) as a way to address concerns about accommodating RHNA in a way that fosters efficient infill and protection of agricultural and environmental resources.
Sonoma County and cities within the county have long shared a commitment to urban centered growth and agricultural preservation, and with this letter and attachments, the County is providing specifics of the requested transfer which is based on a signed agreement between the County and the City of Cloverdale. We also explain the factors and circumstances justifying the transfer and provide supporting documentation. Although not required by the statute, we have also included a discussion of the RHNA objectives in Government Code Section 65584(d).
We would welcome an opportunity to discuss any questions you have regarding our request, the transfer, or the information and analysis provided with this letter, and invite you to contact me at [email protected]. As noted in Section 65584.07(b)(1), the County and the City will need to use the RHNA as revised by the transfers to complete our respective housing element updates, and we therefore feel some urgency to conclude this step in the process.
Respectfully,
Tennis Wick, Director
Permit Sonoma
179
Request for RHNA Transfer Between Sonoma County
and the City of Cloverdale
I. Request for Transfer
In accordance with Government Code Section 65584.07(a), Sonoma County requests ABAG approval of revised RHNAs for the County and the City of Cloverdale. The County and the City have executed an agreement wherein the City has agreed to increase its RHNA in an amount equivalent to the reduction that would be experienced by the County.
The "transfer agreement" is included as an attachment and supports the request for transfer outlined in Table 1, below. This transfer is necessary for the County to continue to fulfil its obligation to plan for development of affordable housing in the unincorporated area and meet other requirements of the law.
Table 1. County and City RHNA Allocations Before and After the Requested Transfer VLI LI MI AMI Totals
County original RHNA 1,036 596 627 1,622 3,881
% of County RHNA to Cloverdale 3.85% 3.85%
Units to Cloverdale 31 32 50 37 150
Cloverdale original RHNA 74 43 45 116 278
Cloverdale new RHNA 105 75 95 153 428
County new RHNA 1,005 564 577 1,585 3,731
180
Sonoma County RHNA Transfer Request
September 2022
II. Compliance with Requirements of Section 65584.07(a) Government Code Section 65584.07(a) provides a process whereby unincorporated counties may reduce their share of regional housing needs by transferring units to one or more of the cities within the county. This section of the law has remained essentially unchanged since its adoption in 2004 despite the recent flurry of housing legislation and serves to recognize the challenges faced by unincorporated jurisdictions, which often steward agricultural and environmental resources and are not broadly served by municipal utilities.
As stated in Section 65584.07(a)(4), the council of governments "shall approve the proposed reduction if it determines that conditions set forth in paragraphs (1), (2), and (3) have been satisfied."
a. The condition in Section 65584.07(a)(1) states: "One or more cities within the county agree to increase its share or their shares in an amount equivalent to the reduction." As explained above, and as demonstrated by the agreement attached to this report, the City of Cloverdale has agreed to an increase in their RHNA that is equivalent to the County's decrease.
b. The condition in Section 65584.07(a)(2) states: "The transfer of shares shall only occur between a county and cities within that county." As explained above, and as demonstrated by the agreement attached to this report, the requested transfer would only be between the County and a city within the County.
c. The condition in Section 65584.07(a)(3) states: "The county's share of low-income and very low income housing shall be reduced only in proportion to the amount by which the county's share of moderate- and above-moderate income housing is reduced." The requested transfers would reduce the County's lower income units (i.e., very low + low income units) in proportion to the reduction in moderate + above market units.
Specifically, the transfer to the City of Cloverdale would reduce the County' RHNA forlower income units (very low+ low-income units) by 3.85% and would reduce the County's RHNA for moderate plus above moderate units by 3.85%.
Ill. Factors and Circumstances Justifying this Request
Section 65584.07(a)(4) further requires that "the county and city or cities proposing the transfer shall submit an analysis of the factors and circumstances, with all supporting data, justifying the revision." The City-County agreement attached to this request describes the factors and circumstances justifying the revision, summarized here as follows:
Preservation of Agricultural Land. Sonoma County and its incorporated jurisdictions have long shared a common interest in agricultural preservation and in maintaining the vibrant agricultural economy that is Sonoma County's economic base. This has resulted in strong policies to protect agricultural lands from conversion to non-agricultural uses, and in policies to support urban centered growth. Examples include the County's Measure K, adopted by 81% of voters in 2016 to preserve agricultural lands, and the urban growth boundaries established by the City of Cloverdale.
181
Sonoma County RHNA Transfer Request
September 2022
These shared commitments seek to ensure that non-agricultural uses are located within incorporated jurisdictions where they will not conflict with agricultural uses and serve to encourage non-agricultural uses in areas (i.e., within city limits) where there are urban services, including water and wastewater utilities, frequent transit service, schools, groceries, health care, and all other needed services. The vast majority of unincorporated Sonoma County does not have access to water and wastewater utilities or convenient access to other urban services.
City Control within Spheres of Influence. Cities also wish to control development at their boundaries, so developable land that is available in the unincorporated area has often been annexed to the cities. With the recent annexation of the 28.7-acre Baumgardner Ranch development project and the pending annexation of the Bi' Du Khaale project, as described in the agreement, Cloverdale will add more than 250 housing units including more than 150 affordable units. While these annexations are consistent with the principles shared by the County and the cities, they also have the effect of reducing developable lands in the County that could be planned for multifamily housing.
County Financial Support for Affordable Developments within City Limits. The County provides significant financial support for affordable housing development without regard to jurisdictional boundaries. In the fifth housing element planning cycle, it has supported projects in the City of Cloverdale. The County will continue to allow affordable housing projects within the City of Cloverdale to apply for and receive funding through the County Fund for Housing. In recognition of the enhanced feasibility of affordable housing within city limits, the City has agreed to accommodate a portion of the County's RHNA.
The agreement between the County and the City that forms the basis of this request under Section 65584.07(a) is provided as an attachment to this request.
The requested transfer would advance the principles of agricultural preservation and urban centered growth by ensuring that additional housing is planned and developed within the City. In addition, the transfer will result in more housing being developed because water and wastewater utilities and access to other urban services are available in the City rather than in the unincorporated County.
Importantly, despite the requested reduction in its RHNA, the County will retain a significant share of the regional housing need and will plan for affordable housing - especially farmworker housing - within the unincorporated area. The County will also meet all other housing element requirements related to affirmatively furthering fair housing (AFFH), emergency shelters, multifamily development, single room occupancies, transitional and supportive housing, and reducing constraints.
IV. Conformance with RHNA Objectives in Section 65584(d) ABAG has asked that the transfer request demonstrate conformance with the RHNA objectives in Section 65584(d), although this is not a requirement for a transfer. Nonetheless, the requested transfers would conform to the RHNA Objectives in Government Code Section 65584(d), as outlined below.
• 65584(d)(1): Increasing the housing supply and the mix of housing types, tenure, and affordability in all cities and counties within the region in an equitable manner, which shall 182
Sonoma County RHNA Transfer Request
September 2022
result in each jurisdiction receiving an a/location of units for low- and very low income households.
The RHNA transfer will not change the total amount or type of housing that must be accommodated in Sonoma County but rather will place that housing on sites with available public utilities and access to urban services. The unincorporated properties with the greatest housing development potential have been annexed to the cities. The requested transfer will likely result in greater increases in affordable housing supply than would occur in the County because of the general lack of services available in most of the incorporated areas: access to services is required to obtain tax credits and other affordable housing funds. The transfer will also ensure that the County retains its agricultural economic base, which provides the basis for a majority of the jobs and other economic activity in the County.
The County will be required to meet all other housing element requirements, including providing a mix of housing types, tenure, and affordability. Although the approved agreements provide for the transfer of the County's total RHNA, under this request the County would retain an allocation of 1,569 units for low- and very low-income households following approval of the requested transfer.
The County will also continue to offer financial support for affordable housing developments in the City as well as in the unincorporated area. The County provides a broad array of services to City residents, especially lower income residents, including child welfare services, public health services, mental health services, self-sufficiency services, and services for older adults.
• 65584(d)(2): Promoting infill development and socioeconomic equity, the protection of environmental and agricultural resources, the encouragement of efficient development patterns, and the achievement of the region's greenhouse gas reductions targets provided by the State Air Resources Board pursuant to Section 65080.
ABAG encouraged counties that appealed their Draft RHNA (Contra Costa, Sonoma, Marin, Santa Clara) to pursue transfer agreements with their cities to "foster efficient infill and protection of agricultural and environmental resources."2 The requested transfer would promote infill development and other listed objectives by encouraging development within urbanized areas, rather than in agricultural zones, where parcel sizes are considerably larger, development is more dispersed, and fewer urban services (including utilities) are available. While residents of the City who work in the unincorporated area will have to travel to their jobs, most jobs in the county are located within the cities, and the cities are where employees go for most urban services like groceries, hospitals, schools, etc. The cities also have more frequent transit service.
All this means that development of infill housing in the cities in general would result in fewer and shorter auto trips and fewer emissions than housing in the unincorporated area.
• 65584(d)(3): Promoting an improved intraregional relationship between jobs and housing, including an improved balance between the number of low-wage jobs and the number of housing units affordable to /ow-wage workers in each jurisdiction. 183
Sonoma County RHNA Transfer Request
September 2022
The County and the cities within Sonoma County have long agreed that urban services and non-agricultural development belong in urbanized areas and have viewed preserving Sonoma County's agricultural economy (and supporting related employment) as a joint responsibility. The requested transfer would not change the region’s jobshousing balance, although by encouraging additional units in the City where development of housing is more likely, they could incrementally improve the balance between jobs and housing while also reducing Vehicle Miles Traveled (VMT).
The County also recognizes that there are agricultural uses within the unincorporated area that involve employment. Farmworkers, winery employees, and similar workers must travel from the cities to their job sites unless they can find housing closer to their employment. The County strongly encourages the provision of farmworker bunkhouses, agricultural employee units, and farm family units and facilitates their production as permitted uses with waiver of impact fees on agricultural lands within in the unincorporated area. County staff is exploring ways that the housing element update can expand upon these current code provisions and otherwise promote development of farmworker housing in the unincorporated County.
• 65584(d)(4): Allocating a lower proportion of housing need to an income category when a jurisdiction already has a disproportionately high share of households in that income category, as compared to the countywide distribution of households in that category from the most recent American Community Survey.
The requested transfers comply with State law, which requires lower income (very low income + low income) units to be transferred proportionately to moderate + above moderate units. In other words, the County is not seeking to transfer away only its lowerincome units and cannot adjust the proportion of lower income units versus moderate + above moderate units based on current household characteristics in the County or the cities.
Approximately 35% of the households in the County have incomes less than 80% of area median income (AMI), comparable to 36% of the households in the City of Cloverdale.
This data suggest that the jurisdictions have comparable proportions of lower income households and that the proposed transfer would not materially affect a jurisdiction with a disproportionate share of lower income households.
2 See ABAG staff reports regarding Contra Costa County Appeal, Sonoma County Appeal, Marin County Appeal, and Santa Clara County Appeal at this location: https://abag.ca.gov/our-work/housing/rhna-regional-housing-needsaIlocation/2023-2031-rhna-appeals-process. 184
Sonoma County RHNA Transfer Request
September 2022
• 65584(d)(5): Affirmatively furthering fair housing. (Based on Section 65584(e), "affirmatively furthering fair housing" means taking meaningful actions, in addition to combating discrimination, that overcome patterns of segregation and foster inclusive communities free from barriers that restrict access to opportunity based on protected characteristics. Specifically, affirmatively furthering fair housing means taking meaningful actions that, taken together, address significant disparities in housing needs and in access to opportunity, replacing segregated living patterns with truly integrated and balanced living patterns, transforming racially and ethnically concentrated areas of poverty into areas of opportunity, and fostering and maintaining compliance with civil rights and fair housing laws.)
Again, the requested transfer complies with State law, which requires lower income (very low income + low income) units to be transferred proportionately to moderate + above moderate units. In other words, the County is not seeking to transfer away only its lowerincome units and cannot adjust the proportion of lower income units versus moderate+ above moderate units based on current household characteristics in the County or the cities. The City would be receiving a balance of lower income (very low income+ low income) units and moderate+ above moderate income units. See above for a discussion of each jurisdiction's share of households by income category. Also, consistent with State law and HCD guidance, the County and City will have to conduct detailed AFFH assessments as part of their housing element updates.
V. Supporting Information
The executed transfer agreement with the City of Cloverdale that forms the foundation for the County's transfer request is included here as an attachment and provides evidence of the commitment to the RHNA transfer by both jurisdictions involved. 3 2015-2019 American Community Survey (ACS) data.
185
2550 Ventura Avenue Santa Rosa CA 95403-2859 (707) 565-1900 www.PermitSonoma.org
20 October 2022
David Kelley, City Manager
City of Cloverdale
124 North Cloverdale Boulevard
Cloverdale, California 95425
RE: PROPOSED REGIONAL HOUSING NEEDS ALLOCATION TRANSFER Dear Mr. Kelley:
Thank you for the City’s collaboration regarding compliance with our jurisdictions’ regional housing needs allocation. I apologize for the communication breakdown. It was great to work out the details together like the old days!
Please find attached a draft memorandum of understanding memorializing a transfer of housing units from the county to the city. As we have discussed, this transfer results in responsible, measured and limited growth better aligned with our general plans.
With Chair Gore’s leadership, I will work with our housing partners to maximize funding opportunities in the city.
I appreciate your cooperation in bringing this item to the City Council at their next meeting, keeping us all on track to finish our housing elements according challenging to state requirements.
I appreciate the City’s willingness to consider this proposal. Please call me at 707-799- 7726 with questions or concerns.
Thank you,
Tennis Wick, AICP
Director
Attachment: Draft memorandum of understanding
cc: James Gore, Chair, Board of Supervisors
Sheryl Bratton, Chief Administrative Officer
Scott Orr, Deputy Director, Planning
186
P.O. Box 217 • 124 North Cloverdale Blvd. • Cloverdale, CA 95425-0217 • Telephone (707) 894-2521 • FAX (707) 894-3451 City Council
Agenda Item Summary
Agenda Item:
Meeting Date:
H.3
October 26, 2022
Agenda Section Staff Contact
Jose M. Sanchez, City Attorney
Agenda Item Title
Approve a Resolution of the City Council of the City of Cloverdale Approving a Fourth Amendment to At-Will Employment Agreement Between the City of Cloverdale and David Kelley for the Position of City Manager Background and Analysis
On March 13, 2018, the City Council approved an At-Will Employment Agreement (“Employment Agreement”) with David Kelley, and appointed Mr. Kelley as City Manager. The Employment Agreement was for the term of March 31, 2018 to March 30, 2021. On December 11, 2019, the City Council approved a First Amendment to the Employment Agreement to implement a cost of living adjustment, consistent with adjustments made for all other at-will employees and bargaining unit members.
After a very positive performance evaluation at the end of 2020 the City Council approved two amendments to Mr. Kelley’s Employment Agreement. On March 24, 2021, the Council approved a Second Amendment to the Employment Agreement extending the Employment Agreement to June 30, 2021. On June 23, 2021, the City Council approved a Third Amendment extending the Employment Agreement to June 30, 2023, placing the City Manager position in a five (5) step salary schedule, and making amendments related to vacation leave, sick leave, and longevity incentive.
The attached Fourth Amendment will extend the Employment Agreement to June 30, 2026 and update the salary section of the Employment Agreement to reflect the City Manager being compensated at step 5 of the City Manager compensation range schedule effective July 1, 2022. Step 5 in the current City Manager salary schedule is $179,544.33 annually.
The Fourth Amendment also continues to make clear that the City Manager is subject to the standard merit system (performance evaluations) and position pay schedule for future step increases, as may be modified from time to time by the City Council. The City Manager’s salary will be reviewed each year in conjunction with an annual performance evaluation and subject to City Council determination of satisfactory performance.
Options
1. Approve the Resolution of the City Council of the City of Cloverdale Approving a Fourth Amendment to At-Will Employment Agreement Between the City of Cloverdale and David Kelley for the Position of City Manager.
2. Provide the City Attorney with other direction.
Budget/Financial Impact
The attached Fourth Amendment increases Mr. Kelley annual salary from step 4, $170,994.60, to step 5, $179,544.33, under the current salary schedule for the City Manager position. This increase is retroactive to July 1, 2022.
187
P.O. Box 217 • 124 North Cloverdale Blvd. • Cloverdale, CA 95425-0217 • Telephone (707) 894-2521 • FAX (707) 894-3451 Subcommittee Recommendation
N/A
Recommended Council Action
Approve the Resolution of the City Council of the City of Cloverdale Approving a Fourth Amendment to AtWill Employment Agreement Between the City of Cloverdale and David Kelley for the Position of City Manager.
Attachments:
1. Resolution
2. Exhibit A – Fourth Amendment to At-Will Employment Agreement 188
1 CITY OF CLOVERDALE
CITY COUNCIL
RESOLUTION NO. ___-2022
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CLOVERDALE
APPROVING A FOURTH AMENDMENT TO THE AT-WILL EMPLOYMENT AGREEMENT
WITH DAVID KELLEY FOR THE POSITION OF CITY MANAGER
WHEREAS, on March 13, 2018, the City Council approved an At-Will Employment Agreement (“Employment Agreement”) with David Kelley, and appointed Mr. Kelley as City Manager; and WHEREAS, the Employment Agreement was for the term of March 31, 2018 to March 30, 2021; and
WHEREAS, on December 11, 2019, the City Council approved a first amendment to the Employment Agreement (“First Amendment”) to implement a cost of living adjustment, consistent with adjustments made for all other at-will employees and bargaining unit members; and
WHEREAS, on March 24, 2021, the City Council approved a second amendment to the Employment Agreement (“Second Amendment”) extending the Employment Agreement to June 30, 2021, to allow additional time to negotiate an extension; and WHEREAS, on June 23, 2021, the City Council approved a Third Amendment extending the Employment Agreement to June 30, 2023, placing the City Manager position in a five (5) step salary schedule, and making amendments related to vacation leave, sick leave, and longevity incentive (“Third Amendment”); and
WHEREAS, the attached Fourth Amendment will extend the Employment Agreement to June 30, 2026 and update the salary section of the Employment Agreement to reflect the City Manager being compensated at step 5 of the City Manager compensation range schedule effective July 1, 2022.
NOW, THEREFORE, BE IT RESOLVED that the City Council does hereby approve the attached Fourth Amendment to the Employment Agreement between the City and David Kelley for the position of City Manager and authorizes the Mayor to execute the Third Amendment.
The foregoing Resolution No. ____-2022 was duly introduced and adopted by the City Council of the City of Cloverdale at its regular meeting held on the __th day of October 2022 by the following roll call vote:
Ayes: (_)
Noes: (_)
APPROVED: ATTEST:
______________________________ ______________________________ Todd Lands, Mayor Mike Maloney, City Clerk
189
P.O. Box 217 • 124 North Cloverdale Blvd. • Cloverdale, CA 95425-0217 • Telephone (707) 894-2521 • FAX (707) 894-3451
FOURTH AMENDMENT TO AT-WILL EMPLOYMENT AGREEMENT
This FOURTH AMENDMENT TO AT-WILL EMPLOYMENT AGREEMENT
(this “Fourth Amendment”) is made and entered into this ____ day of October __, 2022, by and between the CITY OF CLOVERDALE, a general law City (the “City”), and David Kelley (“Employee”), collectively referred to as “Parties.”
RECITALS
WHEREAS, on March 13, 2018, the City Council approved an At-Will Employment Agreement (“Employment Agreement”) with Employee and appointed Employee as City Manager; and
WHEREAS, the Employment Agreement was for the term of March 31, 2018 to March 30, 2021; and
WHEREAS, on December 11, 2019, the City Council approved a First Amendment to the Employment Agreement to implement a cost of living adjustment, consistent with adjustments made for all other at-will employees and bargaining unit members (“First Amendment”); and
WHEREAS, on March 24, 2021, the City Council approved a Second Amendment to the Employment Agreement extending the Employment Agreement to June 30, 2021, to allow additional time to negotiate an extension (“Second Amendment”); and WHEREAS, on June 23, 2021, the City Council approved a Third Amendment extending the Employment Agreement to June 30, 2023, placing the City Manager position in a five (5) step salary schedule, and making amendments related to vacation leave, sick leave, and longevity incentive (“Third Amendment”) ; and
WHEREAS, this Fourth Amendment will extend the Employment Agreement to June 30, 2026 and update the salary section of the Employment Agreement to reflect the City Manager being compensated at step 5 of the City Manager compensation range schedule effective July 1, 2022.
AGREEMENT
1. The first sentence of Section 2 of the Employment Agreement, “TERM,” is amended to read as follows to reflect an extension necessary to continue negotiations for an extension to the Employment Agreement:
“The term of the Agreement shall be from March 31, 2018 to June 30, 2026, unless extended or terminated as provided herein, or until terminated by the event of the death or permanent disability of Employee.”
190
Fourth Amendment to Employment Agreement: City of Cloverdale – City Manager Page 2
2. Section 3, “Condition of Employment,” subsection (d)(i), “Salary,” is amended to read as follows:
“Salary: Effective July 1, 2022, Employee’s base compensation will be One Hundred Seventy-Nine Thousand Five Hundred Forty-Four Dollars and ThirtyThree cents ($179,544.33) annually. This is Step 5 in the adopted City Manager Salary Schedule. Employee will be subject to the standard merit system (performance evaluations) and position pay schedule for future step increases, as may be modified from time to time by the City Council. Employee’s salary will be reviewed each year in conjunction with an annual performance evaluation and subject to City Council determination of satisfactory performance.”
3. Except as amended by this Fourth Amendment, all terms and conditions of the Employment Agreement, First Amendment, Second Amendment, and Third Amendment shall remain in full force and effect.
IN WITNESS WHEREOF, the City has caused this Fourth Amendment to be signed and executed on its behalf by its Mayor and duly attested by the City Clerk. It has also been executed by the Employee.
David Kelley
Employee
Dated:__________________
Todd Lands, Mayor
City of Cloverdale
Dated:_____________________
Attest:
_______________________________
Michael Maloney, City Clerk
City of Cloverdale
Approved As To Form:
_______________________________
Jose M. Sanchez, City Attorney
City of Cloverdale
5208760.2
191