DATE: September 16, 2024
TO: Mayor and Members of the City Council
President and Members of the Estero Municipal Improvement District (EMID) Board of Directors
FROM: Benjamin Stock, City Attorney/District Legal Counsel
DEPARTMENT: City Attorney
SUBJECT: SECOND AMENDMENT TO CITY/DISTRICT MANAGER STEFAN CHATWIN’S EMPLOYMENT AGREEMENT
RECOMMENDATION
It is recommended that the City Council/EMID Board of Directors (City Council) adopt resolutions approving the second amendment to the City/District Manager’s Employment Agreement which adjusts the annual compensation from $316,057 to $328,067.
BACKGROUND/ANALYSIS
Stefan Chatwin was appointed as City/District Manager effective June 21, 2022, and continues to serve in that position. Pursuant to the Employment Agreement between the City/District and Mr. Chatwin, his performance is to be evaluated on an annual basis during the term of his employment.
On August 19, 2024, the City Council/EMID Board conducted its annual review of Mr.
Chatwin’s performance. Based on that review, the City Council/EMID Board instructed that a contract amendment adjusting the City Manager’s base compensation be prepared for consideration, per Paragraph 7, Salary, the Employment Agreement which states, “Increases in salary will be determined by the City Council/District Board as part of Employee’s performance evaluations, and in no case shall Employee’s annual salary increase exceed that of other across the board increases for Management employees.” The City/District Manager’s Employment Agreement, Paragraph 7, Salary, set his base compensation at $274,000 per year which was adjusted effective June 1, 2023 as part of the Koff & Associates compensation study. It was adjusted again effective July 1,
2023 to align with changes approved in the Compensation and Benefits Plan for Management.
Effective July 1, 2024, the Compensation and Benefits Plan for Management provided an across-the-board increase to base salary based on the SF-Bay Area CPI-U to April 2023 to April 2024 (Urban) which equated to 3.8%.
Adjustments to the City/District Manager’s compensation require City Council/EMID Board action by resolution. Attached for the City Council/EMID Board’s consideration is a resolution amending Paragraph 7 of the City/District Manager’s Employment Agreement, increasing the base annual compensation rate by 3.8% to $328,067 effective July 1, 2024, in alignment with what other Management employees received.
In order to implement this contract amendment, the City Council /EMID Board must adopt the attached resolution. If adopted, then both the Mayor/President and City/District Manager would execute the contract amendment, as shown in Attachment 3, thereby adjusting the City Manager's base compensation.
California Environmental Quality Act
CEQA General Rule Exemption
FISCAL IMPACT
Approving the Second Amendment to the City/District Manager’s Employment Agreement will adjust the annual compensation for the City/District Manager from $316,057 to $328,067 effective July 1, 2024. A 3.8% increase was budgeted in FY24/25 budget so there is no additional fiscal impact at this time.
ATTACHMENTS:
Attachment 1 – City Resolution
Attachment 2 – EMID Resolution
Attachment 3 – Second Amendment to the Employment Agreement