Item Number: 39
City Council / Board of Directors
Written Communications
Meeting of: August 20, 2024
Submitted By:
Andre de Bortnowsky, City Attorney
Subject:
Consideration of Adjustments to Employment Agreement for the City Manager which may include a discussion on a possible salary adjustment
Recommendation:
At the City Council meeting of July 16, 2024, the City Council reviewed the terms of the Employment Agreement for City Manager, Keith C. Metzler. In particular, Section 7(A) which states, “The Council shall review and evaluate the performance of the employee in June of each year hereafter for salary consideration.” As a result of that review, the City Council asked to agendize certain revisions to the Employment Agreement and, to the extent the Council deems appropriate, a discussion on a possible salary adjustment for the City Manager. However, any action is at the discretion of the City Council.
Fiscal Impact:
The City Manager base annual salary under the Second Amendment to Employment Agreement which includes the 3% cost of living adjustment provided to all employees effective July 1, 2024, is $337,716 and is allocated as follows:
1001200 51100 City Manger 40% allocation
4204076 51100 VMUS Electric 30% allocation
4500125 51100 Airport Operations 19% allocation
4210200 51100 VMUS Electric Public Purpose 5% allocation 4190210 51100 VMUS Gas 6% allocation
No appropriation is necessary at this time, unless and until the City Council provides direction to adjust the City Manager base salary. Staff believes there will be sufficient budget to cover any possible adjustments in salary for the remainder of the fiscal year, as there are commonly unexpended funds in various wage accounts due to vacancies, however, if that is not the case any adjustments needed can be handled during the mid- year budget process.
2 7
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Background:
Mr. Keith C. Metzler has been providing services to the City as its City Manager since January 2018 pursuant to the terms of the Employment Agreement. Section 7(A) of that Agreement provides that, “The Council shall review and evaluate the performance of the employee in June of each year hereafter for salary consideration.” The City Council recently undertook an annual performance review and shared said review with the City Manager. As a result, the City Council deemed it appropriate to discuss the possibility of certain adjustments based on the City Manager’s performance review.
Discussion:
Attached for City Council consideration are proposed revisions to the City Manager Employment Agreement which provides for certain adjustments to the retirement medical coverage benefits to bring them in line with the benefits provided to all City employees and to allow for future City Manager evaluations to be conducted by an outside management consultant. To the extent the City Council wishes to adjust the City Manager’s salary, beyond what is contained herein and consistent with Section 7, it could do so through the proposed Third Amendment to the Employment Agreement.
Staff remains available for any questions or comments you might have.
Attachments: A. Third Amendment to Employment Agreement