DATE: December 2, 2024
TO: Mayor and Members of the City Council
President and Members of the EMID Board of Directors
FROM: Stefan Chatwin, City/District Manager
DEPARTMENT: City Manager
SUBJECT: OVERHIRE OF A FINANCE DIRECTOR POSITION
RECOMMENDATION
It is recommended that the City Council/EMID Board adopt the attached resolutions authorizing an appropriation for $154,000 in General Fund (Fund 001) and approving an overhire for the Finance Director position in the Finance Department from January 2025 through April 30, 2025.
EXECUTIVE SUMMARY
The Finance Director position in the Finance Department has been filled on an interim basis by internal staff while the current Finance Director has been on an extended leave of absence. The current Finance Director has decided to resign, and recruitment has begun to find a replacement. To ensure a smooth transition for the individual that will be hired, the City Manager is requesting Council/EMID Board authorization to overhire the position from January 2025 through April 2025. It is anticipated that the increased cost for labor due to the leave of absence and of the overhire will total to approximately $154,000 in FY 2024-2025 and the entire cost will be absorbed by the General Fund.
BACKGROUND/ANALYSIS
The Finance Director position in the Finance Department is a key position in managing Foster City finances and overseeing the annual budget process. The current Finance Director has been on leave of absence since March 2024. Since that time, the
Assistant Finance Director and existing Finance staff have taken on additional duties and received additional compensation for those duties.
The Finance Director has recently decided to resign and is willing to assist his replacement as part of a transition plan. To proactively prepare for the transition of duties associated with this key executive position, the City/District Manager recommends that the City Council/EMID Board authorize an overhire of the Finance Director position starting January 2025 through April 2025. Overhiring is a key tool used in succession planning and can be an effective strategy for managing staffing transitions and institutional knowledge transfer, thus minimizing the workload impacts on the remaining staff.
A supplemental appropriation of $154,000 from the General Fund is required to fund the additional compensation provided to staff during the leave of absence and for the cost of the overhire.
California Environmental Quality Act
Not applicable
FISCAL IMPACT
The combined personnel costs (salary and benefits) of existing staff performing various tasks in the absence of the current Finance Director since July 2024 and to overhire a Finance Director for the period of time of January 2025 through April 2025 is estimated at $154,000 in FY 2024-2025. The entire cost will be absorbed by the General Fund.
CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREA
Staff Empowerment and Operational Excellence
ATTACHMENTS:
Attachment 1 - City Resolution
Attachment 2 - EMID Resolution