CITY OF COMMERCEAGENDA REPORTCITY OF COMMERCEAGENDA REPORT
CITY OF COMMERCE
AGENDA REPORT
CITY OF COMMERCE
AGENDA REPORT
Item No. Item No.
Item No.
Item No.
TO: Honorable City Council
FROM: City Attorney
SUBJECT: Consideration of Employment Agreement with City Manager Meeting Date: March 14, 2023
RECOMMENDATION:
The City Council will consider an employment agreement with City Manager Edgar P. Cisneros.
ANALYSIS:
On November 21, 2017, the then City Council selected and appointed Edgar P. Cisneros as City Manager of the City of Commerce. Following his appointment an employment agreement was entered into between the City and Mr. Cisneros. The initial employment agreement included a four (4) year term.
In 2019, nearing the completion of the second year of the employment agreement, Mr. Cisneros requested that the City Council consider approving a modified employment agreement. Mr. Cisneros requested a salary increase in light of the fact that the City Manager’s salary was below the average salary for city managers of comparable cities according to a survey prepared by the Human Resources Department. The survey demonstrated that the average salary of a city manager in comparable cities was approximately $244,000. Additionally, Mr. Cisneros noted that the prior permanent city manager for the City of Commerce was compensated $238,468.98 during his last year of service in 2017.
On October 15, 2019, the City Council approved a revised employment agreement. Among the modifications to Mr. Cisneros’ employment agreement, the revised employment agreement increased Mr. Cisneros salary from $200,000 to $230,000 and extended the term of the employment agreement from November 21, 2021 to October 30, 2023.
Shortly following the effective date of Mr. Cisneros’ second employment agreement, the City of Commerce was faced with the most significant economic downturn since the Great Depression. The operation of the City and the delivery of services to its residents were threatened by the immediate decline in revenues collected by the City. Immediate action was necessary to help stabilize the City and secure its future operations. To that end, beginning on September 7, 2020, Mr. Cisneros offered, and the City Council accepted his offer, to temporarily reduce his salary. To date, Mr. Cisneros’ reduction in compensation is over Eighteen Thousand Dollars ($18,000) less than he is contractually entitled to receive due to his offer to temporarily reduce his salary during the pandemic. Although Mr. Cisneros’ employment agreement includes a provision that makes him eligible for a salary increase subject to the City Council’s discretion beginning on October 15, 2020, Mr. Cisneros did not request one. Instead, Mr. Cisneros continued to receive the temporary reduction to his compensation.
As set forth above, the existing employment agreement between Mr. Cisneros and the City is set to expire on October 30, 2023. Mr. Cisneros advised the City Council that he desires to continue his service for the City of Commerce beyond October 2023. Mr. Cisneros has requested the City Council to consider a modified employment agreement that will extend his tenure as City Manager beyond October 2023. The attached draft employment agreement proposes to add approximately 14 months to the current expiration date, with the agreement ending December 31, 2024 and continuing on a month-to-month basis thereafter. The draft revised agreement also contemplates new termination language that is favorable to the City and calls for a two and one-half percent (2.5%) salary increase.
BACKGROUND:
In 2017, the City Council hired Bob Murray and Associates to manage the recruitment of candidates to fill the vacant City Administrator. Thirty-seven (37) candidates applied. The City Council selected five (5) candidates for an interview. The City Council conducted the interviews on Saturday, October 28, 2017. The City Council then invited back two candidates, including Mr. Cisneros, for a second round of interviews, which were conducted on November 7, 2017. Following the completion of the second round of interviews, the City Council directed City staff to begin negotiations with Mr. Cisneros. Mr. Cisneros was appointed by the City Council on November 21, 2017. Cisneros served as the City Administrator from November 22, 2017 to May 2, 2019. On May 2, 2019, he was designated as the City Manager in accordance with Ordinance No. 708, which was approved for a second reading by the City Council on April 2, 2019. On October 15, 2019, Mr. Cisneros employment agreement was extended to October, 2023 along with other adjustments to compensation and benefits.
FISCAL IMPACT:
The funding for this position has been approved as part of the adopted budget for fiscal year 2022-2023, but an additional appropriation will be required consistent with monetary adjustments approved by the City Council, if any.
Respectfully submitted by: Noel Tapia, City Attorney
Attachment:
Draft Employment Agreement between the City of Commerce and Edgar P. Cisneros City Council Resolution