DATE: 04/01/2026
TO: Honorable Mayor and City Council Members
FROM: Human Resources Department
2026-124
REQUEST FOR CITY COUNCIL ACTION
SUBJECT:
CONSIDERATION OF AMENDED AND RESTATED EMPLOYMENT AGREEMENT
FOR CITY MANAGER
EXECUTIVE SUMMARY:
This staff report asks the City Council to consider an Amended and Restated Employment Agreement for the City Manager.
RECOMMENDED ACTION:
That the City Council approve an amended and restated employment agreement for the City Manager.
BACKGROUND & HISTORY:
On March 18, 2026, the City Council met in closed session to discuss the City Manager’s performance. The City Council is very pleased with his performance and that of his team, and they recognize the fact that he and his team are on the verge of seeing transformative community projects come to fruition in the near future.
To help ensure these projects are completed successfully, the Council also discussed ways in which they can improve their support for Mr. Ellis and his efforts to stay focused on the successful delivery and completion of these projects. They also directed staff to prepare revisions to his employment agreement for consideration in open session.
ANALYSIS:
The Amended and Restated Employment Agreement for the City Manager modifies the existing Employment Agreement as follows: (1) change his annual leave accrual to 13.46 hours per pay period, which is consistent with other City employees of his tenure and experience; (2) change his longevity pay to be equal to 4.5% of his base salary, which is consistent with some other City employees; (3) provide him with 12 months’ severance in the event of a termination without cause, plus one month for each additional year of service with the City beginning on his anniversary date in November of 2026, up to a maximum of eighteen (18) months as of November of 2031; and (4) change his deferred compensation to be equal to 9% of his base salary.
The Amended and Restated Employment Agreement makes no change to base salary.
FINANCIAL IMPACT:
The increased amounts provided for in the Amended and Restated Employment Agreement for the City Manager are available within the budget for the City Manager’s Office.
ENVIRONMENTAL ANALYSIS:
This action is exempt pursuant to Section 15061(b)(3) of the Guidelines for the California Environmental Quality Act (CEQA), which states that a project is exempt from CEQA if the activity is covered by the common sense exemption that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. This action merely considers and approves an Amended and Restated Employment Agreement for the City Manager, and there is no possibility that approving this amendment will have a significant effect on the environment.
PREPARED BY: DEAN DERLETH, CITY ATTORNEY/LRM DIRECTOR
REVIEWED BY: LORI SASSOON, CHIEF TALENT OFFICER
ATTACHMENTS:
1. Exhibit 1 – Amended and Restated Employment Agreement