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SARATOGA CITY COUNCIL
MEETING DATE: June 2, 2010 AGENDA ITEM:
DEPARTMENT: City Attorney CITY MANAGER: Dave Anderson
PREPARED BY: Richard Taylor DIRECTOR: Richard Taylor
SUBJECT: City Manager Voluntary Benefits Waiver
RECOMMENDED ACTION: Authorize the Mayor to sign a letter agreement documenting the City
Manager’s offer to voluntarily waive certain benefits specified in his employment agreement.
REPORT SUMMARY:
In light of significant revenue shortfalls to the City due to current economic conditions and state fiscal
policies the City Manager and other senior staff have offered to forego certain benefits to which they are
otherwise entitled. Because the City Manager and other senior staff have separate employment
agreements, they are addressed in separate staff reports.
The City Manager has offered to waive the following benefits for the 2010-2011 fiscal year:
• An annual cost of living adjustment in salary;
• An annual salary increase contingent on satisfactory performance;
• A monthly car allowance; and
• The right to sell back accrued leave.
The City Manager made this offer voluntarily and was not asked to do so by any City representative or
member of the City Council. The City Manager’s employment agreement provides him with the option
of treating certain reductions in salary or benefits as a termination entitling him to other rights under the
agreement. The attached letter documents that the City Manager has voluntarily offered the benefits
waiver and that, accordingly, he is not entitled to treat the benefit reduction as a circumstance that would
give him the termination rights specified in the agreement.
FISCAL IMPACTS: City costs will be reduced in the coming fiscal year. This cost savings is reflected
in the proposed budget.
FOLLOW UP ACTION: The mayor and the City Manager will sign the attached letter.
ADVERTISING, NOTICING AND PUBLIC CONTACT: This item was posted as a City Council
agenda item and was included in the packet made available on the City’s web site in advance of the
meeting. A copy of the agenda packet is also made available at the Saratoga Branch Library each
Monday in advance of the Council meeting and residents may subscribe to the agenda on-line by opting
in at www.saratoga.ca.us.
ATTACHMENTS: Letter from Mayor to City Manager