To: Honorable Mayor and Members of City Council
From: Fran Robustelli, Assistant City Manager
Prepared By: Liz Habkirk, Deputy City Manager
TITLE:
Title
City Manager's Employment Agreement
LABEL
RECOMMENDED ACTION:
Recommendation
Adopt a resolution amending the employment agreement with City Manager Steve Potter that reduces his overall compensation in response to the fiscal emergency caused by COVID-19.
Body
DISCUSSION:
On December 18, 2018, the City Council adopted a resolution (R2018-145) appointing Steve Potter as City Manager and outlining a base salary and benefits as set forth in the "Executive Compensation and Terms of Employment Summary" as adopted by R2017-177, subsequently updated by R2020-009, with two modifications relating to retiree medical insurance reimbursement and a severance package.
Based on the terms of his hiring agreement, Mr. Potter was scheduled to receive an increase of 3% to his base salary beginning with the December 26, 2020 pay period bringing his annual total to $250,853.
However, the City Council will be considering a Declaration of Fiscal Emergency as a result of the unprecedented impact of COVID-19 and the City's projected loss of revenue from Sales Tax and Transient Occupancy Tax (TOT) in recent months. Continued revenue losses are expected through the end of the current Fiscal Year 2019/20 with a projected shortfall of approximately $10 million. Projected revenue losses for Fiscal Year 2020/21 are estimated to range from $15 million to $20 million. As such, the City address revenue losses and revise the City's budgeted revenues for both FY 19/20 and FY 20/21.
In recognition of the significant financial emergency faced by the City at this time, Mr. Potter is requesting the following amendments to reduce his contract provisions, effective April 25, 2020:
* Defer the scheduled 3% wage increase in December 2020
* Reduce the base salary by 5%
* Suspend of the monthly auto allowance of $500
* Suspend of the monthly...
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