title
CC - ACTION ITEM: Approval of Amendment to the City Manager Executive Employment Agreement.
body
Meeting Date: March 9, 2026
Contact Person/Dept.: Dana Anderson, Chief Human Resources Officer
Phone Number: (310) 253-5640
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Attachments: Yes [X] No []
Public Notification: (E-Mail) Meetings and Agendas - City Council (03/04/2026)
Department Approval: Dana Anderson, Chief Human Resources Officer (03/02/2026) _____________________________________________________________________
RECOMMENDATION
Staff recommends that the City Council approve an amendment to the City Manager Executive Employment Agreement to modify temporary housing assistance, adjust the residency incentive benchmark to reflect current housing market conditions, and approve a one-time additional lump sum of 80 vacation hours to be added to the City Manager’s vacation accrual bank for calendar year 2026.
BACKGROUND AND DISCUSSION
On December 15, 2025, the City entered into an Executive Employment Agreement with the City Manager with the understanding that there would be a continued discussion surrounding relocation and benefits given the quick move to California that was needed to help transition from the former City Manager. The current Agreement provides for nine months of temporary housing assistance at $5,000 per month, establishes a residency incentive program structured around historical housing values, and governs paid time off under the Executive Compensation Plan. The City Manager has requested updates to these provisions to align with current market conditions and executive recruitment standards.
The proposed amendment would increase the temporary housing assistance monthly rate from $5,000 to $6,500 per month beginning on March 1, 2026, and extend eligibility from nine to twelve months, terminating upon the purchase of a permanent residence. Since the Agreement was executed, rental rates in the area have remained significantly above the current monthly rate, and available housing inventory remains limited. The requested adjustment reflects prevailing market conditions and provides flexibility during the relocation period.
The amendment would also update the residency incentive benchmark loan to align with 2026 housing values, which have substantially increased since the original benchmark was established in 2013. While consumer price index growth since 2013 has been approximately 39 percent, housing values have increased by more than double that amount. Without adjustment, the incentive no longer reflects its original purchasing intent.
The residency incentive benchmark was originally structured around housing values in approximately the $1.2 million range in 2013. The proposed amendment would adjust the benchmark to a loan in the range of approximately $2.6 million to $2.8 million or authorize an indexed methodology. Alternatively, the Council may direct staff to renegotiate parameters or maintain the current structure. The Agreement expressly permits amendment by written instrument executed by both parties, and the Council retains full discretion to modify or revisit terms. The proposed alignment preserves the Council’s original policy objective of encouraging residency within City limits while maintaining the program’s structure.
Finally, the amendment would provide a one-time allocation of 80 hours of vacation accrual for calendar year 2026. This advancement does not modify accrual methodology, sick leave, administrative leave, floating holidays, or cash-out provisions. It is intended to address transition workload and align executive recruitment practices with comparable jurisdictions.
FISCAL ANALYSIS
The temporary housing adjustment would represent a limited and non-recurring fiscal impact. The estimated maximum additional cost, assuming full utilization of the extended period and increased monthly rate starting in the month of March, is $28,500. Actual costs would depend on the timing of a home purchase.
A one-time allocation of 80 hours of vacation leave would have a cost of approximately $14,231 based on the City Manager’s current salary. The Revised Budget for Fiscal Year 2025-2026 includes sufficient funding from salary savings in the City Manager’s Office to cover costs within the current year. Any costs in the next fiscal year would be included in the next fiscal year budget.
Adjusting the residency incentive benchmark does not create an automatic expenditure but modifies eligibility parameters should the program be utilized. The loan would come from General Fund reserves. If the loan program is utilized, staff will return to City Council with the financial details and any necessary resolutions.
ATTACHMENTS
2026_03_09_ATT 1_Amendment to City Manager Executive Employment Agreement
recommended action
MOTION(S)
That the City Council:
1. Approve an amendment to the City Manager Executive Employment Agreement; and
2. Authorize the Mayor to execute the amendment.