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2 DATE: May 4, 2026
TO: Mayor and Members of the City Council
President and Members of the Estero Municipal Improvement District (EMID) Board of Directors
VIA: Stefan Chatwin, City/District Manager
FROM: Diane Pitman, Administrative Services Director
DEPARTMENT: Administrative Services
SUBJECT: REINSTATE THE DEPUTY CITY MANAGER POSITION
RESPONSIBLE FOR ECONOMIC DEVELOPMENT AND
OVERSIGHT OF COMMUNITY DEVELOPMENT DEPARTMENT
RECOMMENDATION
It is recommended that the City Council/EMID Board of Directors (City Council) adopt the attached resolutions reinstating the Deputy City Manager (DCM) position responsible for Economic Development and oversight of the Community Development Department (CDD) in the FY 2025-2026 budget, authorizing a salary change to the current DCM position, authorizing the City Manager to hire a DCM during the current FY 2025-26, and adopt the amended City/District Pay Plan for FY 2025-2026.
EXECUTIVE SUMMARY
To advance the City Council’s priorities for Economic Development opportunities, the City recently hired an outside consultant to conduct a Real Estate Economic Market Analysis. This Analysis requires extensive collaboration with both internal staff that are familiar with the City businesses and community as well as external business stakeholders. In 2023, the City Council had approved updated job classifications for various positions including the DCM position. The job classifications were updated to reflect changes in job duties and to allow the City Manager flexibility to fill certain positions based on Organizational needs. On August 5, 2024, as part of the approved budget, the previously approved Economic Development Manager position was moved
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2 to the City Manager’s office and raised to a DCM position with a corresponding salary adjustment. At the time, the position was envisioned to be primarily responsible for driving Economic Development initiatives. However, based on the current organizational assessment and to promote recruitment and retention, the City Manager’s Office would like to reinstate the DCM position and assign the oversight of CDD Department to the DCM position in addition to Economic Development responsibilities. Staff is recommending increasing the salary of the DCM job description so that the CDD Director can report to the newly hired DCM. The DCM will report directly to the City Manager.
BACKGROUND/ANALYSIS
Following Council approval of the DCM position in 2024, the City attempted to recruit a DCM responsible for Economic Development. The recruitment did not result in candidates that fit the needs of the City. In an attempt to move forward with Council priorities to advance Economic Development initiatives, the funding for the DCM position was removed from the FY 25-26 Annual Budget and was added to consulting/contracts to conduct a land use analysis/economic development study instead. Those funds were used to hire an outside consultant with expertise on analyzing the potential for real estate market development and investment for the City.
The City has completed preliminary data gathering and analysis and is currently in the middle of community/stakeholder outreach. Following the completion of the real estate economic market analysis, the City will need to embark into Phase 2 of the Study.
Phase 2 of the Study will focus on evaluating the data and results of the real estate economic market analysis and translating it into meaningful actions and initiatives that will culminate into an Economic Development Strategic Plan.
Currently, the CDD Director has been leading and driving this initiative and coordinating with the outside consultant on key deliverables and tasks in addition to managing the CDD department. Given that this approach is not sustainable for the long term, it is recommended that the DCM position be reinstated and hired to manage Economic Development, the second phase of the Real Estate Economic Market Analysis process in partnership with the consultant and oversee CDD. Given the direct nexus between Economic Development and land use and housing, the DCM will supervise the CDD Director and ensure there is alignment in advancing future Economic Development initiatives closely with CDD. The DCM will report directly to the City Manager.
To ensure the City hires a highly qualified individual that can manage Economic Development priorities of the Council and the community, and oversee the CDD department without salary compaction, a revision to the salary range for the previous Deputy City Manager position is recommended. The salary schedule shown below for FY 2025-26 allows for a 5% differential between the Deputy City Manager and the direct report of the CDD Director. This differential is recommended based on compensation best practice.
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2 Position Step 1 Step 2 Step 3 Step 4 Step 5
Deputy City
Manager Monthly
Salary
$19,768.68 $20,757.12 $21,794.96 $22,884.71 $24,028.94
California Environmental Quality Act
Not Applicable
FISCAL IMPACT
The fiscal impact of the new position is approximately $400,000 per year including benefits. For the remainder of FY 2025-26, this new position can be funded with unspent personnel resources in the existing budget. Future amounts will be assumed in the proposed Fiscal Year 26-27 and Fiscal Year 27-28 biennial budget.
CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREA
Staff Empowerment and Operational Excellence
ATTACHMENTS:
Attachment 1 – City Resolution
Attachment 2 – EMID Resolution
Attachment 3 – Amended Pay Plan for Fiscal Year 2025-2026 effective May 4, 2026