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AMENDING THE CITY MANAGER EMPLOYMENT CONTRACT
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RECOMMENDATION
It is recommended that the City Council adopt a resolution amending certain compensation terms for the City Manager and authorizing the Mayor, on behalf of the City Council, to execute the amendments to the employment agreement.
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DISCUSSION
Background
Kurt Wilson began his service to the City of Stockton as a Deputy City Manager II on September 4, 2012 and assumed the role of interim City Manager on November 1, 2013. He was appointed to the position of City Manager effective February 1, 2014.
The City Council met in closed session on July 25, August 22, and September 19, 2017 to evaluate the performance of the City Manager. Consistent with that process, the Mayor and City Council affirm two changes to the City Manager compensation package.
Present Situation
The City Manager is responsible for the implementation of the Strategic Priorities of the Mayor and Council. The City Manager acknowledges the need to revise his work plan in order to adapt to current and future versions of the Strategic Priorities. As an outcome of the City Manager evaluation process, the City Council authorizes a one-time payment to the City Manager in the amount of $43,790.99. In addition, the City authorizes an increase to the City’s contribution to the City Manager’s 401(a) deferred compensation plan in the amount of 28,051.20 annually.
The accompanying Resolution outlines these actions and serves as an amendment to the original employment contract which is also included as Exhibit 1 to the Resolution.
FINANCIAL SUMMARY
The total cost of the one-time payment of $43,790.99 will be approximately $57,500 with benefits. The total FY 2017-18 cost of the one-time payment and the deferred compensation contribution is $85,500 which will be charged to multiple City funds. The General Fund share will be $52,150 with $18,800 paid by City utility funds and the balance spread in small increments to nine other funding sources. Sufficient funds for the General Fund share are available in the City Manager’s Office account 010-1211-510 as a result vacancy savings and employee leave. The impact to other City funding sources will be minimal factoring in vacancy savings.
The increase in contributions to the 401(a) deferred compensation plan is an ongoing annual cost to the City with an $17,111 annual impact to the General Fund. When run through the Long-Range Financial Plan, the long-term impact of this action is a $250,000 reduction to General Fund available balance after a ten-year period.