Cotati City Council
Agenda Staff Report
Item type: REGULAR CALENDAR (ACTION)
To: City Council
Subject: THIRD AMENDED AND RESTATED CITY MANAGER
EMPLOYMENT AGREEMENT
Date: June 9, 2026
Written by: Damien O'Bid, City Manager
Recommendation
It is recommended that the City Council adopt a resolution authorizing the Mayor to sign the third amended and restated employment agreement with the City Manager.
Background
The current City Manager, Damien O’Bid, became Acting City Manager on December 1, 2014, after which a full recruitment process commenced for a permanent City Manager. Mr. O’Bid was ultimately selected and entered into a three-year employment agreement with the City, commencing on April 15, 2015. On April 10, 2018, the agreement was extended through July 9, 2018. On July 9, 2018, the agreement was again extended for 3 years through July 9, 2021. The agreement was extended again on August 24, 2021 through July 9, 2026, which was approved through an Amended and Restated Agreement. Finally, on August 23, 2022, the City Council approved the Second Amended and Restated Agreement, primarily to align certain benefits with other employee groups at the City.
In accordance with the Ralph M. Brown Act (California Government Code Section 54953(d)), it is required to provide an oral summary of the recommended final compensation (salary, fringe benefits, etc.) before the City Council votes on this item, for recording in the minutes of the meeting.
Analysis/Discussion
It was recently discovered that the current City Manager labor agreement ended a year before the non-represented group. It was originally intended that the City Manager labor agreement and the non-represented statement of benefits be on the same end date. Upon realizing this, a 1-year extension was proposed, which is attached in redline. The edits are primarily clean up of old language. The substantive edits are a 1-year contract extension, a 2.5% cost of living adjustment to follow the adjustment in other labor group MOUs and the removal of a clause regarding the allowed number of leave cash outs per year, to be consistent with the non-represented group agreement. There is no change to the amount of leave cash out allowed, so language limiting the number is unnecessary.
Financial Considerations
The proposed 1-year extension includes a 2.5% cost of living adjustment, which continues the prior cost of living adjustments and mirrors the other employee groups. The current (FY 25-26) hourly rate is $104.92. If approved by the City Council, the cost-of-living adjustment would be applied on the first full pay period in FY 26-27. There are no other changes with any financial impact.
Environmental Issues
Where it can be determined 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 review.
This general rule can be applied to activities which could be subject to the CEQA process, but which logic dictates should not be subject to CEQA review. Therefore, based on the information provided above, the proposed resolution is exempt from CEQA pursuant to Section 14.03.021 of the CEQA Guidelines in that there is no possibility that the activity may have a significant impact on the environment.