CITY OF PACIFICA
COUNCIL AGENDA SUMMARY REPORT
11/25/2024
1 SUBJECT:
Consideration and Adoption of Resolution Approving a Third Amendment to Restated Employment Agreement between the City of Pacifica and Kevin Woodhouse as City Manager RECOMMENDED ACTION:
Move to adopt Resolution approving the Third Amendment to Restated Employment Agreement between the City of Pacifica and Kevin Woodhouse.
STAFF CONTACT:
Michelle Marchetta Kenyon, City Attorney
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 and Second Amendment to the Restated Employment Agreement on November 27, 2023. In 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 Mayor Vaterlaus and Mayor Pro Tem Beckmeyer to work with the City Manager and City Attorney to negotiate amendments to the City Manager’s compensation and benefits in the form of a Third Amendment to Restated Employment Agreement. (“Third Amendment”).
The Third Amendment provides for the following modifications to salary and benefits for the City Manager: 1) effective the first pay period after October 9, 2024, a 3% increase in salary which equates to an annual base salary of $314,087.00 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.
This proposed salary increase is consistent with the compensation increase structure applied to other bargaining units in the City for Fiscal Year 2024-25 -- a Cost of Living increase of 2% plus an Equity Tier adjustment of 1% which is merited due to the fact that the City Manager is still at least 9% below median of comparator City Managers in the region. The modification to the City Manager’s health benefits reflects the same health benefits provided to other employees.
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. In light of these considerations, it is recommended that the Council approve the attached Resolution which approves the Third Amendment to Restated Employment Agreement and authorizes the Mayor to execute the Third Amendment to Restated Employment Agreement between the City of Pacifica City Council 2
November 25, 2024
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:
Approval of this Third Amendment to the Restated Employment Agreement will result in a total fiscal impact of $9,148 per year, with approximately $6,404 of that total expended during FY2024-25. This amount can be covered by the current FY2023-24 City Manager’s Office budget.
ORIGINATED BY:
Ad Hoc Council Subcommittee
Mayor Vaterlaus
Mayor pro Tem Beckmeyer
ORIGINATED BY:
City Attorney's Office
ATTACHMENT LIST:
Attachment A - Third Amendment to Restated Employment Agreement between the City of Pacifica and Kevin Woodhouse (PDF)
Pacifica City Council 3
November 25, 2024
RESOLUTION NO. ______
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PACIFICA APPROVING THE
THIRD AMENDMENT TO RESTATED EMPLOYMENT AGREEMENT BETWEEN CITY OF
PACIFICA AND KEVIN WOODHOUSE
WHEREAS, the City of Pacifica (“City”) and Kevin Woodhouse have previously entered into an Employment Agreement to employ Kevin Woodhouse as City Manager; WHEREAS, the City and Kevin Woodhouse have previously entered into a Restated Employment Agreement effective December 13, 2021;
WHEREAS, the City and Kevin Woodhouse have previously entered into a First Amendment to Restated Employment Agreement effective November 28, 2022; WHEREAS, the City and Kevin Woodhouse have previously entered into a Second Amendment to Restated Employment Agreement effective November 27, 2023; WHEREAS, the City and Kevin Woodhouse now desire to enter into a Third Amendment to Restated Employment Agreement to modify the terms and conditions of Manager’s employment as City Manager;
NOW THEREFORE, BE IT RESOLVED, that the City Council of the City of Pacifica hereby approves the Third Amendment to Restated Employment Agreement between the City of Pacifica and Kevin Woodhouse in substantially the same form attached hereto as Exhibit "A" and authorizes and directs the Mayor to execute same for and on behalf of the City of Pacifica.
• • • • •
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Pacifica, California, held on the 25
th day of November 2024, by the following vote:
AYES, Councilmembers:
NOES, Councilmembers:
ABSENT, Councilmembers:
ABSTAIN, Councilmembers:
_________________________________
Sue Vaterlaus, Mayor
ATTEST: APPROVED AS TO FORM:
______________________________ _________________________________ Sarah Coffey, City Clerk Michelle Kenyon, City Attorney Pacifica City Council 4
November 25, 2024
EXHIBIT “A”
Third Amendment to Restated Employment Agreement
Between City of Pacifica and Kevin Woodhouse