Agenda Item No: L.4
AGENDA REPORT
DATE: January 20, 2026
TO: Mayor and Council
FROM: David Gassaway, City Manager
SUBJECT: Resolution 2026 -12 HR Authorizing and Adopting Changes to City Manager’s Compensation and Benefits
Authorizing Changes to the Terms and Conditions of City Manager’s Compensation & Benefits to Maintain Alignment with Series 100 Executive Management-Represented Classifications
Funding Source: $9,252; General Fund
Contact: Farbod Pirouzmand (707) 428-7397
RECOMMENDED ACTION
Adopt resolution.
STATEMENT OF ISSUE
The city manager’s employment agreement includes provisions related to the terms and conditions of compensation and benefits to align with similar benefits received by Series 100 Executive Management-Represented classifications. City council adopted changes to Series 100 compensation and benefits on December 16, 2025. This action is necessary, due to the provisions of the city manager’s employment contract , to ensure continued alignment with Series 100 Executive Management-Represented classifications.
DISCUSSION
On December 16, 2025, city council adopted Resolution No. 2025-260 to approve changes to the Series 100 Executive Management employees’ compensation package. According to the terms outlined in the city manager’s employment contract, his compensation and benefits are to be adjusted in accordance with those received by Series 100 Executive Management employees.
Adjustments to the city manager’s compensation package based on what Series 100 employees receive are described in the following table:
Benefit
Summary of Change
Constructive Receipt Committed to adhere to the outcomes of the upcoming meet and confer process with bargaining units regarding leave cash -out practices and compliance with federal Internal Revenue Service (IRS) rules Off-Salary
Schedule Pay
Issued a one-time 3% cash payment in-lieu of cost-of-living adjustment in alignment with other bargaining units
Personal Leave Reduced annual accrual by 22.42 hours in exchange for a 1.08% adjustment to base wage; e stablished a maximum accrual limit of 300 hours where none existed previously
Sick Leave Established a 500 hour maximum accrual limit where none existed previously and allows for a Health Reimbursement Arrangement for hours over the limit; eliminated payoff upon resignation or termination
The costs for the changes represent fair trade-offs by executive management staff, including the city manager . Specifically, prior year cost of living adjustments (COLA) were not accepted by executive leadership and the one-time cash payment is in lieu of those forgone adjustments. The one-time nature of the payment provides additional compensation that does not increase future liabilities. Additionally, the forfeiture of personal leave hours supplements the base wage adjustment and put in place a leave balance accrual cap that reduces long -term liabilities. This approach maintains alignment with other bargaining unit negotiated agreements without creating a significant impact on the General Fund.
The compensation and benefit adjustments were discussed by city council in a closed session meeting on December 17, 2025, for the city manager’s performance evaluation. Council direction to proceed with this compens ation package was authorized based on a positive performance evaluation.
FINANCIAL IMPACT
The cost for the one-time cash payment is $9,252 in the first year. Ongoing cost estimates for the
1.08% adjustment to base wage in exchange for a reduction in personal leave hours are estimated to cost $1,128 annually. The funding source is primarily General Fund with approximately 30% reimbursed across various funds for indirect support through the cost allocation plan.
PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
N/A
ALTERNATIVE ACTION
The c ouncil may choose not to approve the changes to the terms and conditions of the City Manager’s Compensation and Benefits to maintain alignment with Series 100 Executive Management-Represented classifications and direct staff to amend different terms than stated above.
COORDINATED WITH
City Manager’s Office and Finance Department
STAFF CONTACT
Farbod Pirouzmand, Assistant City Manager/Director of Human Resources (707) 428-7397
[email protected]
ATTACHMENTS
Attachment 2: Proposed Resolution
Attachment 3: City Manager’s Contract and City Council Resolution 2022-338