CITY OF FERNDALE – HUMBOLDT COUNTY CALIFORNIA – U.S.A.
SPECIAL MEETING
Location: City Hall
834 Main Street
Ferndale, CA 95536
Date: February 9, 2026
Time: 3:45pm
Posted: February 5, 2026
We welcome you to the meeting. Members of the Public may be heard on any business item on this Agenda before or during the City Council consideration of the item. The public may also directly address the City Council on any Closed Session item before the Council adjourns to Closed Session discussions. The public will be asked to step out during Closed Session discussion and may return once the
A person addressing the City Council will be limited to five (5) minutes unless the Mayor of the City Council grants a longer period. While not required, we would appreciate it if you would identify yourself with your name and address when addressing the Council.
This City endeavors to be ADA compliant. Should you require assistance with written information or access to the facility, or a hearing amplification, please call 786-4224 24 hours prior to the meeting.
PLEASE WAIT TO BE ACKNOWLEDGED BY MAYOR BEFORE SPEAKING
1. CALL SPECIAL MEETING TO ORDER – Mayor
2. PLEDGE ALLEGIANCE TO THE FLAG
3. ROLL CALL - Mayor Cady, Councilman Lund, Councilwoman FiskBecker, Councilman Jorgensen, and Councilman Ostler
4. PUBLIC COMMENT ON CLOSED SESSION ITEM(S)
5. ADJOURN TO CLOSED SESSION
6. CLOSED SESSION BUSINESS
a. CONFERENCE WITH LABOR NEGOTIATORS
Agency designated representatives: Ryan Plotz, City Attorney Unrepresented employee: City Manager
7. RECONVENE TO OPEN SESSION
8. REPORT OUT OF CLOSED SESSION
9. BUSINESS
a. Consider Approval of City Manager Employment Agreement with Kristene Hall
10. ADJOURN
This notice is posted in compliance with Government Code §54954.2. The next Regular Meeting of the Ferndale City Council will be held on February 18, 2026 at 6:00pm February 09, 2026
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Section 1
CALL MEETING TO ORDER
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PLEDGE ALLEGIANCE
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ROLL CALL
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PUBLIC COMMENT ON CLOSED SESSION ITEMS
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ADJOURN TO CLOSED SESSION
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CLOSED SESSION BUSINESS
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RECONVENE TO OPEN SESSION
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REPORT OUT OF CLOSED SESSION
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BUSINESS
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CITY MANAGER EMPLOYMENT AGREEMENT
Between the City of Ferndale and Kristene Hall
THIS CITY MANAGER EMPLOYMENT AGREEMENT (“Agreement”) is made and entered into as of February ___, 2026, by and between the City of Ferndale, a California municipal corporation (“City”), and Kristene Hall (“Manager”) (collectively, “Parties”).
RECITALS
WHEREAS, the City of Ferndale (“City”) is a California municipal corporation organized and existing under the laws of the State of California; and WHEREAS, pursuant to Ordinance No. 01-02 (the “City Manager Ordinance”), the office of City Manager is established as the administrative head of the City government, appointed by and serving at the pleasure of the City Council; and
WHEREAS, the City Council has determined that Kristene Hall possesses the executive, administrative, professional, and technical qualifications necessary to serve as City Manager and to provide effective leadership and continuity of municipal operations; and WHEREAS, Kristene Hall has served at the appointed City Clerk for 12 years and has further served in the capacity of Interim City Manager since July, 2025; WHERES, the City Council desires to appoint Kristene Hall as City Manager and to set forth the terms and conditions of her employment in this Agreement; and WHEREAS, the City Council desires to enter into this Agreement to ensure clarity and mutual understanding regarding Manager’s duties, compensation, benefits, performance expectations, and the rights and obligations of the Parties; and WHEREAS, Manager wishes to accept the appointment as City Manager and to perform the duties of the office in accordance with the City Manager Ordinance, the policies of the City Council, and the terms of this Agreement.
AGREEMENT
NOW, THEREFORE, in consideration of the mutual covenants herein, the Parties agree as follows:
SECTION 1. APPOINTMENT AND TERM
1.1 Appointment. The City Council hereby appoints Kristene Hall as City Manager of the City of Ferndale pursuant to the City Manager Ordinance, and Manager accepts such appointment subject to the terms of this Agreement.
1.2 Term of Agreement. This Agreement shall commence on March 1, 2026 (“Start Date”), and shall continue until June 30, 2031, unless extended by mutual agreement or earlier February 09, 2026
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terminated under this Agreement and in all cases subject to the AT-WILL nature of the appointment.
1.3 At-Will Status. Manager shall serve at the pleasure of the City Council, consistent with Section 4.02 of the City Manager Ordinance, meaning Manager may be terminated at any time, with or without cause, subject to the procedural and severance provisions of Section 6 of this Agreement. The term described herein is intended solely to define compensation and severance rights and does not create any expectation, guarantee, or promise of continued employment for any duration.
1.4 Interim Performance Review. An interim performance review shall occur approximately six months from the Start Date, or as soon thereafter as may be scheduled.
1.5 Annual Performance Review. In addition to the interim performance review required under Section 1.4, the City Council shall conduct a formal performance evaluation of Manager at least once annually. The evaluation shall be based upon criteria, goals, and objectives established jointly by the City Council and Manager. Following each evaluation, the City Council shall provide Manager with a written summary of its findings, and Manager shall have the opportunity to respond and to discuss the evaluation with the City Council in closed session.
Nothing in this Section alters Manager’s at-will employment status.
SECTION 2. DUTIES, RESPONSIBILITIES, AND AUTHORITY
2.1 City Manager Duties. Manager shall serve as the administrative head of the City government under the direction and control of the City Council, consistent with Ordinance 01-02.
Manager shall faithfully perform all duties of the office, including those set forth in:
a. The City Manager Ordinance;
b. Ordinances and resolutions of the City Council;
c. State and federal law applicable to city managers and public agency administrators; d. Policies, directives, and lawful instructions of the City Council.
Manager shall at all times exercise independent, professional judgment and shall conduct herself in a manner consistent with the highest standards of public administration.
2.2 Service as Public Works Director. Manager shall, at the direction of the City Council, concurrently perform the duties of Public Works Director or oversee the Public Works Department during periods of vacancy, transition, or operational need. Such service shall be considered part of Manager’s regular duties as City Manager and shall not entitle Manager to additional compensation beyond that provided in this Agreement, unless expressly authorized by the City Council. In performing such duties:
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a. Manager shall exercise the authority of Public Works Director to the extent permitted by law and City policy, including oversight of public works operations, infrastructure projects, regulatory compliance, capital project planning, and supervision of Public Works personnel.
b. Manager may delegate day-to-day operational responsibilities to qualified staff but shall remain administratively responsible to the City Council for the performance of the Public Works Department.
c. The City Council may appoint or hire a separate Public Works Director at any time, after which Manager’s interim duties in this area shall cease unless otherwise directed.
2.3 Ethics, Conflicts of Interest, and Compliance with Law. Manager shall comply with all applicable federal, state, and local laws governing ethical conduct and conflicts of interest, including Government Code sections 1090, 87100 et seq., and 1126, as well as the City’s adopted ethics and conflict-of-interest policies. Manager shall file all required statements of economic interests and shall not knowingly engage in any activity that constitutes a prohibited conflict of interest.
SECTION 3. COUNCIL/MANAGER RELATIONSHIP
3.1 Non-Interference. Consistent with the City Manager Ordinance, members of the City Council shall not interfere with the execution of Manager’s administrative duties, nor shall they issue directives to City employees who are subordinate to the Manager. Direction to staff shall occur solely through the City Manager.
3.2 Policy Direction. The City Council shall deal with administrative services only through the Manager, except for the purpose of inquiry. Manager shall be responsible for implementing Council policy and keeping the Council informed on operational matters.
3.3 Professional Conduct. Manager shall maintain a cooperative, transparent, and professional working relationship with the City Council, providing information, recommendations, and analysis necessary to support informed policymaking.
SECTION 4. SCHEDULE, TIME COMMITMENTS, AND OUTSIDE WORK
4.1 Start Date. Manager’s employment under this Agreement shall commence on March 1, 2026 (“Start Date”). The Start Date shall constitute the beginning of the Transition Phase (defined below) and all rights, obligations, compensation, accruals, and benefits applicable to the Transition Phase shall begin on that date unless otherwise stated in this Agreement. Manager shall assume the duties of City Manager on the Start Date. Until the Start Date, Manager shall continue as the appointed Interim City Manager under the terms and conditions of the Interim City Manager Agreement.
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4.2 General Time Commitment and Availability. Manager shall devote the time, attention, and energy necessary for the full and proper performance of the duties of City Manager.
Manager is expected to maintain regular presence during normal City business hours and to be generally available outside those hours as necessary to address City needs, including emergencies, public meetings, special assignments, and other matters requiring executive-level attention. The position is classified as exempt under state and federal wage and hour law. Accordingly, Manager’s compensation is not based on hours worked, and Manager shall not be entitled to overtime or compensatory time except as expressly provided in City policy.
4.3 Schedule. While the position is inherently full-time and may require service beyond standard office hours, Manager shall have reasonable discretion, subject at all times to the needs of the City, to structure her daily and weekly work schedule in a manner that supports the effective and efficient performance of her duties. This discretion includes, but is not limited to, the ability to utilize a four-day, ten-hour (4/10) work schedule or a similar alternative schedule, provided that Manager ensures ongoing accessibility to the City Council, staff, and the public, and further ensures continuity of executive leadership and service delivery.
4.4 Transition Phase. The period beginning on the Start Date and concluding on the earliest of (a) April 1, 2026, or (b) the date on which the City Council has appointed a new City Clerk (such that Manager no longer serves in that role), shall be referred to as the “Transition Phase.” During this period, Manager shall perform the duties of City Manager and City Clerk on a schedule sufficient to ensure effective administration of City operations and continuity of governmental services.
4.5 Exempt Position. The City Manager position is classified as exempt under the Fair Labor Standards Act and applicable California law.
4.6 Outside Employment and Consulting. Manager may engage in outside employment, consulting, or professional activities during the term of this Agreement, provided that such activities do not interfere with the full and proper performance of her duties as City Manager. Any outside work must be conducted in a manner that does not create, or reasonably appear to create, any conflict of interest under applicable law, including but not limited to Government Code sections 1090, 87100, and 1126, and the City’s adopted conflict-of-interest and ethics policies. Manager shall not use City staff, resources, equipment, materials, or confidential information in connection with any outside activities, and shall conduct all such activities in a manner that maintains the integrity, impartiality, and public trust associated with the office of City Manager.
4.7 Professional Standards. Manager shall conduct herself in accordance with the highest standards of professional ethics and public administration, and shall at all times act in a manner consistent with the trust, responsibility, and leadership expectations inherent in the office of City Manager.
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SECTION 5. COMPENSATION AND BENEFITS
5.1 Compensation During Transition Phase. During the Transition Phase, as defined in Section 4.3, Manager shall be compensated on an hourly basis calculated from the annualized salary set as Step 2 of the City Manager wage scale. The hourly rate shall be $62.78. Although the position is otherwise exempt, during the Transition Phase and in recognition of the dual role of City Manager and City Clerk, Manager shall be entitled to overtime or compensatory time except as required by law.
5.2 Compensation Following Transition Phase. Upon the conclusion of the Transition Phase (as described in Section 4.4), Manager shall be compensated on an annual salary basis at the annual rate of One Hundred Thirty Thousand Five Hundred and Eighty Two Dollars ($130,582), representing Step 2 on the City Manager Wage Scale, and subject to lawful payroll withholdings and the City’s standard payroll practices. The salary is intended as full compensation for all services rendered in the capacity of City Manager, including evening meetings, emergencies, and work performed outside customary business hours. Manager shall not receive additional compensation for overtime or extra hours worked.
5.2.1 Annual Cost-of-Living Adjustment and Merit Consideration. Beginning July 1, 2027, and on each July 1 thereafter during the term of this Agreement, Manager’s base salary shall be automatically adjusted to reflect changes in the cost of living. The adjustment shall be equal to the percentage change in the Consumer Price Index for All Urban Consumers (CPI-U), San Francisco–Oakland–Hayward Area (or its successor index), from the CPI-U published for March of the immediately preceding calendar year to the CPI-U published for March of the current calendar year. In no event shall the annual cost-of-living adjustment exceed five percent (5%), regardless of the percentage increase in the CPI-U. If the CPI-U reflects no increase or a decrease, no cost-of-living adjustment shall be applied for that year. The adjusted salary shall become effective automatically on July 1 without further action by the City Council and shall constitute the new base salary for all purposes under this Agreement.
5.3 Paid Time Off and Leave Accruals. Manager shall accrue vacation leave, sick leave, and other forms of PTO at the full-time accrual rates applicable to City management or unrepresented employees, as established by City policy or resolution and as amended from time to time. Manager may use accrued leave in accordance with City policy and subject to operational needs. Leave accrual caps, carryover rules, and payout provisions at separation shall apply to Manager to the same extent as other management or unrepresented employees unless otherwise provided herein.
5.4 Management Leave. Manager shall accrue five (5) days of Management Leave per year, subject to a maximum accrual cap of fifteen (15) days. Management Leave is intended to compensate Manager for the additional time and demands associated with an exempt executive February 09, 2026
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position. Management Leave shall accrue annually and shall be used or carried over consistent with City policy. Management Leave accrued but unused at separation shall be treated in accordance with the City’s policies governing payout of Management Leave for management or unrepresented employees.
5.5 Retirement Benefits. The City provides a retirement benefit through a Simplified Employee Pension Individual Retirement Account (SEP-IRA) established and maintained by the City in accordance with Section 408(k) of the Internal Revenue Code and applicable federal law.
Manager shall be eligible to participate in the City’s SEP-IRA on the same terms and conditions applicable to other eligible management or unrepresented employees, subject to the requirements of the SEP-IRA plan document. The City shall make employer contributions to Manager’s SEPIRA in accordance with the contribution formula, eligibility rules, and limitations established by the City’s SEP-IRA plan, as amended from time to time. All contributions shall be subject to applicable Internal Revenue Code limits. Manager understands and agrees that participation in the SEP-IRA does not create a vested right to any specific level of contribution, that employer contributions are made at the discretion of the City as provided in the plan, and that the City reserves the right to amend, suspend, or terminate the SEP-IRA plan at any time, consistent with applicable law. Retirement benefits shall be governed exclusively by the terms of the SEP-IRA plan and applicable federal law, and nothing in this Agreement shall be construed to expand, modify, or guarantee any retirement benefit beyond those terms.
5.6 Health, Dental, and Vision Insurance; Other Benefits. Manager waives any participation in any health, dental or vision benefits that are provided by the City. Manager represents and warrants that she is a covered participant in health benefits offered by her spouse’s employer. In lieu of City-provided health, dental, and/or vision benefits, Manager shall receive a bi-weekly stipend of $138.46 per pay period, subject to all federal, state, and local withholdings applicable to such stipend.
5.7 Additional Benefits for Full-Time Employees. Manager shall be entitled to any additional benefits provided to full-time management or unrepresented employees, including but not limited to life insurance, long-term disability insurance, employee assistance programs, and deferred compensation programs, to the extent such benefits are offered by the City and subject to each plan’s eligibility requirements. Participation in deferred compensation plans shall be at Manager’s election and funded through Manager’s own contributions unless otherwise authorized by City policy.
5.8 Expense Reimbursement. Manager shall be reimbursed for actual and necessary business expenses incurred in the performance of her duties, in accordance with City policy and supported by appropriate documentation. Reimbursement shall not include expenses related to outside employment or consulting activities.
5.9 Dues and Subscriptions. City agrees, to the extent it is financially able and with City Council approval, to budget for and to pay for professional dues and subscriptions of Manager February 09, 2026
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necessary for her continuation and full participation in national, regional, state and local City Manager associations.
5.10 Professional Development. City agrees, to the extent it is financially able and with City Council approval, to budget for and to pay for travel and subsistence expenses of Manager for professional and office travel, meetings, and occasions adequate to continue the professional development of Manager and to adequately pursue necessary official functions for City, including but not limited to the ICMA Annual Conference, the League of California Cities Annual Conference and the annual City Manager's Department meeting and the annual renewal requirements of the ICMA Credentialed Manager Program, and such other national, regional, state, and local governmental groups and committees thereof which Manager serves as a member. City also agrees, to the extent it is financially able, to budget for and to pay for travel and subsistence expense of Manager for short courses, institutes, and seminars that are necessary for her professional development and for the good of the City.
5.11 Auto Stipend. In recognition that Manager must use her own vehicle for official business, Manager shall receive an auto stipend in the amount of $400 per month, subject to all federal, state, and local withholdings applicable to such stipend. The stipend is given in lieu of reimbursement for mileage. The auto stipend is not compensation earnable for purposes of retirement benefits.
SECTION 6. TERMINATION
6.1 At-Will Status. Manager acknowledges that she serves at the pleasure of the City Council, consistent with the City Manager Ordinance. Nothing in this Agreement shall be construed to confer a fixed term of employment or to limit the authority of the City Council to terminate Manager’s employment at any time, with or without cause.
6.2 Termination by the City Council Without Cause. The City Council may terminate Manager’s employment without cause at any time by majority vote of the entire Council, subject to the procedural requirements of the City Manager Ordinance. Unless otherwise waived in writing by Manager, termination without cause shall be effective thirty (30) days after delivery of written notice of the Council’s intent to remove Manager.
Upon termination without cause, Manager shall be entitled solely to:
a. Severance payment in an amount equal to the lesser of (i) three (3) months’ salary or (ii) the salary that would have been payable to Manager through the end of the term but for her removal;
b. Payment for all accrued and unused vacation, management leave, and other paid time off to the extent payable upon separation under City policy; and c. Any continued health plan participation required under federal COBRA law, at Manager’s sole expense.
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As a condition precedent to receipt of severance, Manager shall execute a general release of claims in a form approved by the City Attorney, releasing the City and its officials from any claims arising out of Manager’s employment or separation, except for claims that cannot be released as a matter of law. Severance shall be paid in a lump sum within thirty (30) days following the effective date of termination, subject to lawful withholdings.
6.3 Termination for Cause. The City Council may terminate Manager for cause at any time by majority vote of the entire Council. “Cause” includes, but is not limited to:
a. Willful breach of this Agreement;
b. Gross neglect of duty or persistent failure to perform assigned responsibilities; c. Fraud, dishonesty, or other acts involving moral turpitude; d. Conviction of a crime involving abuse of office or violation of the public trust; e. Material violation of City policy, law, or ethical standards; f. Knowing or reckless violation of state or federal conflict-of-interest laws; g. Any other conduct constituting grounds for cause under the City Manager Ordinance, other ordinances of the City, or California law.
If the City Council terminates Manager for cause, Manager shall be entitled only to final wages earned, payout of accrued leave required by City policy, and any benefits mandated by law. No severance of any kind shall be owed in the event of termination for cause.
6.4 Termination by Manager. Manager may terminate this Agreement by submitting written resignation to the City Council. Manager shall provide no less than ninety (90) days’ notice, unless the City Council and Manager mutually agree to a shorter notice period. Upon resignation, Manager shall not be entitled to severance or any compensation beyond wages earned, accrued leave payable under City policy, and benefits required by law.
6.5 Disability or Incapacity. If Manager becomes unable to perform the essential functions of the position, with or without reasonable accommodation, due to physical or mental disability, the City may separate Manager in accordance with applicable law. In determining such separation, the City shall follow all requirements of the Americans with Disabilities Act, the Fair Employment and Housing Act, and applicable City policies.
6.6 Surrender of City Property. Upon termination for any reason, Manager shall return all City property, records, files, equipment, electronic devices, documents, keys, access credentials, and any other items belonging to the City no later than the effective date of termination unless otherwise directed.
6.7 Effect of Termination. Upon termination of this Agreement for any reason, all compensation and benefits shall cease except as expressly provided in this Agreement, in the City Manager Ordinance, or as required by law. The City shall have no continuing obligation to Manager beyond the terms specified herein.
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SECTION 7. BOND REQUIREMENT
If required by law, Manager shall furnish a corporate surety bond in the amount and form approved by the City Council, conditioned upon the faithful performance of her duties as City Manager. The premium for such bond shall be paid by the City.
SECTION 8. INDEMNIFICATION
To the fullest extent permitted by law, the City shall defend, indemnify, and hold Manager harmless from and against any claim, demand, action, suit, or proceeding arising out of any act or omission occurring within the course and scope of her employment as City Manager, in accordance with Government Code sections 825 through 825.6 and 995 through 996.6. The City’s duty to defend and indemnify shall not apply to acts or omissions outside the scope of employment, acts involving actual fraud, corruption, or malice, or any matter for which indemnity is prohibited by law.
SECTION 9. GOVERNMENT CODE §§ 53243–53243.4 COMPLIANCE
Pursuant to Government Code sections 53243, 53243.1, 53243.2, and 53243.4, if Manager is convicted of a crime involving an abuse of her office or position, Manager shall fully reimburse the City for: (i) any paid leave salary provided pending investigation; (ii) any funds paid to defend Manager against criminal charges; and (iii) any severance or settlement funds paid to Manager in connection with termination.
SECTION 10. NOTICES
Any notice required or permitted under this Agreement shall be in writing and shall be deemed given when delivered personally, deposited in the United States Mail (postage prepaid, certified or registered), or sent by nationally recognized overnight courier, addressed as follows:
To the City:
City of Ferndale
Attn: Mayor and City Council
PO Box 1095,
Ferndale CA, 95536
To Manager:
At Manager’s last address on file with the City.
Either party may change its address by providing notice to the other.
SECTION 11. MISCELLANEOUS PROVISIONS
11.1 Entire Agreement. This Agreement constitutes the entire agreement between the Parties regarding the employment of Manager. It supersedes all prior negotiations, understandings, or agreements, whether written or oral, including any Conditional Offer of Employment.
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11.2 Amendment. No amendment to this Agreement shall be valid unless in writing and approved by the City Council and signed by both Parties.
11.3 Severability. If any provision of this Agreement is held invalid or unenforceable, the remaining provisions shall be interpreted to give effect to the intent of the Parties.
11.4 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California.
11.5 Interpretation. No ambiguity shall be construed against either Party by reason of authorship. Both Parties have had an opportunity to review and consult with counsel.
11.6 City Property. All documents, correspondence, emails, text messages, and other materials created, received, or maintained by Manager in the course of City business shall be City property and may constitute public records subject to disclosure under the California Public Records Act. Manager shall comply with all City policies regarding technology use, cybersecurity, and records retention.
11.7 No Waiver. Failure of either Party to enforce any provision of this Agreement shall not be construed as a waiver of that provision or of the right to enforce it thereafter.
11.8 Headings. Headings are for convenience only and do not affect interpretation of this Agreement.
IN WITNESS WHEREOF, the Parties have executed this City Manager Employment Agreement following approval by the City Council at a duly noticed public meeting. Each Party acknowledges that they have had the opportunity to consult with legal counsel, that they fully understand the terms of this Agreement, and that they enter into it freely and voluntarily. This Agreement shall become effective upon execution by both Parties, and Manager’s employment shall commence on the Start Date defined herein.
CITY OF FERNDALE
BY: ____________________
NAME: Randy Cady
TITLE: MAYOR
KRISTENE HALL
BY: ____________________
NAME: Kristene Hall
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Section 6
ADJOURN
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