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HomeMy WebLinkAbout101-Staff report.pdfPage 1 of 1 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