City of Lathrop
Appointed Official Evaluation Process
AUGUST 10, 2026
CITY COUNCIL REGULAR MEETING
ITEM 5.3
1 Overview
2 ° Each July the City Council conducts the performance evaluation process with the City Manager, City Attorney and Police Chief pursuant to their annual process.
° On July 10, 2026, the City Council conducted their
performance review with each of the 3 Appointed Officials. ° As a part of the annual evaluation process the Council reviewed compensation data from comparable agencies and recent updates to City staff benefits.
Based on direction from the City Council, employment agreement amendments for each of the Appointed Officials have been prepared °
Amendments for Council Consideration
3 ° These amendments reflect benefits granted to the Department Heads and include the following provisions:
• Additional City contribution toward health premiums in the amount of $200 or $300 per month based on employee’s
health plan level of coverage;
• Additional Management Leave benefit based on years of service (capped at 180 hours);
• A City contribution toward the employees’ deferred
compensation account or base pay (City Manager 10%, City Attorney 5% and Police Chief 7%)
The compensation changes were informed by executive compensation changes in comparable agencies and internal equity with existing City compensation.
• Support retention and continuity in City operations
°
Staff Recruitment & Retention
3 ° City staff have identified an additional benefit enhancement to provide flexibility and choice to City employees
• Implementing a new 401(a) Deferred Compensation plan to supplement existing plans; a tool for savings and investment to help employees plan for their future
These tools and compensation adjustments support retention and continuity in City operations; facilitate continued delivery of services through daily operations and long-term strategic planning °
Fiscal Impact
7 ° Fiscal impact is reflected in the attached staff report with a Citywide impact of $102,565.
° The agreements are financially sound based on conservative revenue projections and review of anticipated expenditures. ° The agreements can be implemented without compromising service levels, reserve targets, or long-term fiscal stability. ° The City is projected to maintain a structurally balanced operating budget throughout the term.
Recommended Council Actions
8 ° Adopt resolution approving the 3 employment contract amendments
°
Authorize the Mayor to execute applicable employment
contract amendments for the City Manager, City Attorney and Police Chief.