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SARATOGA CITY COUNCIL
MEETING DATE: November 2, 2011 AGENDA ITEM:
DEPARTMENT: City Attorney CITY MANAGER: Dave Anderson PREPARED BY: Monica LaBossiere DIRECTOR: Catherine Engberg
Human Resources Manager Acting City Attorney
SUBJECT: Council Resolution to Approve Agreement for Employment of City Manager David Anderson (“Anderson”)
RECOMMENDED ACTION: Approve the terms and conditions contained in said Agreement for Employment between
Anderson and the City effective November 2, 2011.
BACKGROUND: Anderson was hired in the position of City Manager on August 21, 2000 and has served the City
now for over a decade.
In the last few years, the local, state, and national economy has seen unprecedented economic
losses, substantially declining property values, and declining sales tax revenues. As a result, the
City has experienced revenue losses. Anderson recognized that in addition to the City’s earlier
cuts through spending reductions, a hiring freeze and layoffs, the City needed to rein in
unsustainable employee costs. The City’s cost of employee total compensation has continued to increase while revenues decrease. The current round of employee MOU’s on tonight’s agenda
address these issues.
The following is a summary of short and long-term key issues that the City Manager has
voluntarily agreed to:
• Waived Five (5) Percent Salary Increase for Two (2) Years: In 2010 and 2011, Anderson
voluntarily waived his right per his employment agreement adopted by the City Council to
receive a five (5) percent increase in salary.
• Retirement: Effective July 1, 2011, Anderson began contributing 7% of his compensation on
a pre-tax basis for the employee seven (7) percent fixed share of the CalPERS defined benefit
retirement program.
• Pension Reform: Anderson agreed to pension reform to include a second tier 2%@60 defined benefit retirement formula with the highest three (3) year average of salary as part of the retirement calculation for future incumbent(s).
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• Car Allowance Reduction: Effective July 1, 2011, the City Manager receives an allowance of
$375 per month (a reduction of $125 per month). In 2010, the City Manager voluntarily
waived $6,000.00 in car allowance.
• Paid Time Off (PTO) Cap: The City will enforce its PTO cap.
FISCAL IMPACTS:
In an effort to find solutions with the objective to lead by example, Anderson voluntarily agreed to modify his employment agreement mid-term in both 2010 and 2011. In 2010, Anderson
voluntarily reduced his total compensation by approximately $17,800.00. In 2011, Anderson
voluntarily reduced his total compensation by approximately $25,427.00. These savings are
cumulative and will continue in Anderson’s proposed Agreement for Employment attached hereto and made a part hereof effective November 2, 2011.
CONSEQUENCES OF NOT FOLLOWING THE RECOMMENDED ACTIONS:
Anderson would continue to receive benefits as per his employment agreement which expired on September 1, 2011 and per the City and Anderson’s agreement to changes to his employment agreement via side letter agreement on July 6, 2011.
ALTERNATIVE ACTION(S):
N/A FOLLOW UP ACTION(S):
ADVERTISING, NOTICING AND PUBLIC CONTACT:
Pursuant to Government Code 54954.2, this item was properly posted as a City Council agenda
item and was included in the packet made available on the City’s website 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.
ATTACHMENTS:
1. Resolution
2. Agreement for Employment of City Manager (Effective Date of November 2, 2011)