CITY OF PACIFICA
COUNCIL AGENDA SUMMARY REPORT
11/27/2023
1 SUBJECT:
Consideration and Adoption of Resolution Approving Second Amendment to Restated Employment Agreement between the City of Pacifica and Kevin Woodhouse as City Manager RECOMMENDED ACTION:
Move to adopt resolution approving the Second Amendment to Restated Employment Agreement between the City of Pacifica and Kevin Woodhouse.
AD HOC COUNCIL SUBCOMMITTEE:
Tygarjas Bigstyck, Mayor
Sue Beckmeyer, Councilmember
BACKGROUND/DISCUSSION:
The City and City Manager, Kevin Woodhouse, entered into an Employment Agreement in September 2017. The City and City Manager Woodhouse then entered into a Restated Employment Agreement on December 13, 2021 providing for the terms and conditions of employment of Kevin Woodhouse. The Council and City Manager then entered into a First Amendment to the Restated Employment Agreement on November 28, 2022. In October and November of this year, the Council held an annual performance review which was facilitated by Dan Keen of Daniel Keen Consulting. Following the completion of the performance review, the City Council authorized an ad-hoc subcommittee consisting of Mayor Bigstyck and Councilmember Beckmeyer to work with the City Manager and City Attorney to negotiate amendments to the City Manager’s compensation and benefits.
In the course of those discussions, the subcommittee reviewed a salary survey based on the comparator cities used in the City’s most recent labor negotiations. This salary survey and a review of the City Manager’s significant accomplishments were used to evaluate the City Manager’s salary adjustment. This salary adjustment forms the basis of the Second Amendment to Restated Employment Agreement (“Second Amendment”).
The Second Amendment provides for the following modifications to salary and benefits for the City Manager: 1) effective the first pay period after October 9, 2023, a 14% increase in salary which equates to an annual base salary of $304,939.00; and 2) a modification to the City Manager’s employment health benefits to reflect the same health benefits provided to other Department Heads in the City.
There are several factors contributing to the recommended salary increase. Since beginning his tenure as City Manager in Pacifica in 2017, Kevin Woodhouse’s compensation has been significantly behind the local market median. And as the City Manager compensation market in San Mateo County has changed, especially in recent years, Mr. Woodhouse’s annual increases have not kept pace, and he has fallen further and further behind. Currently, as shown in Attachment A, Kevin Woodhouse is 19% below the median of comparator cities for total compensation (salary+benefits). He is also the lowest paid City Manager in both salary and Pacifica City Council 2
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total compensation among these comparator cities (the same comparator cities used during labor negotiations for all employees) despite being one of the most experienced and longesttenured City Managers in the County.
Given this stark discrepancy, we recommend bringing Mr. Woodhouse’s salary closer to median, which is also in line with the City’s comprehensive salary plan negotiated with the City’s represented employees with the goal of bringing employee compensation closer to median.
This salary increase is also warranted due to the substantial accomplishments that the City Manager has achieved in his tenure. Some highlights include:
1. Stabilizing the City’s finances (e.g., Measure Y, AA+ Credit Rating, Budget Transparency and GFOA Awards).
2. Receiving millions in successful grant receipts.
3. Infrastructure improvements such as annual streets improvements, Civic Center financing and renovation, EQ Basin, storm and wastewater infrastructure planning and improvements.
4. Coastal infrastructure planning.
5. Planning improvements to prepare Pacifica for its future, such as completion of the comprehensive General Plan Update and Sharp Park Specific Plan, and progress on the Local Coastal Plan Update.
6. Organizational Culture and Process Improvements, including:
a. Departmental assessments and improvements - Public Works, HR, IT, CMO, Police;
b. Building an exceptional Executive Team of Department Directors; c. Modernizing operations through technology and policy updates; d. Leading the City through the COVID Pandemic; and
e. Other operational and program improvements in the Police and Parks, Recreation, and Beaches Departments.
7. Enhanced Community Engagement, Inter-Agency Collaboration, and Legislative advocacy consisting of:
a. Council review and approval of community engagement plans for major projects; b. Support of Councilmember efforts for state/fed legislator relationships; c. Work with state legislator staff re: funding and legislation proposals; and d. Inter-agency relationship building - Other cities, school districts, special districts, partner organizations, RCD, CCC, One Shoreline, etc.
In making a compensation recommendation, the subcommittee sought to balance labor market competitiveness considerations, Pacifica’s financial challenges, and consideration of the organization’s stability and productivity under Kevin’s leadership. It should be noted that the recommended increase still leaves Mr. Woodhouse approximately 9% behind median.
In light of these considerations, it is recommended that the Council approve the attached Resolution which approves the Second Amendment to Restated Employment Agreement and authorizes the Mayor to execute the Second Amendment to Restated Employment Agreement between the City of Pacifica and Kevin Woodhouse.
RELATION TO CITY COUNCIL GOALS AND WORK PLAN:
“A Strong Workforce Infrastructure” includes strategies to address employee retention and attraction challenges, engaging staff in decision-making, and recognizing staff..
FISCAL IMPACT:
Pacifica City Council 3
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Approval of this Second Amendment to the Restated Employment Agreement will result in a total fiscal impact of $37,500 per year, with approximately $28,000 of that total expended during FY2022-23. This amount can be covered by the current FY2023-24 City Manager’s Office budget.
ORIGINATED BY:
City Attorney's Office
ATTACHMENT LIST:
Attachment A - City Comparisons of Total Compensation (PDF) Attachment B - Resolution No. ____-2023 Approving the Second Amendment to Restated Employment Agreement between City of Pacifica and Kevin Woodhouse (DOCX) Attachment C - Second Amendment to Restated Employment Agreement between the City of Pacifica and Kevin Woodhouse (PDF)