TO: Honorable Mayor and Members of the City Council
FROM: Sophia Meyer, City Attorney
SUBJECT:
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Approval of the 1st Amendment to the City Manager Contract with the City of Red Bluff
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RECOMMENDED COUNCIL ACTION:
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Review and approve the First Amendment to the City Manager’s Contract.
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SUMMARY:
City Manager Contract indicates that there should be a 10% difference between the City Manager pay and the next highest paid City employee. The most recent round of negotiations has caused there to be impaction and there is currently no difference between the City Manager pay and the next highest paid employee, which is in violation of the terms of the City Manager negotiated contract. Council is being asked to consider a 1st Amendment to the City Manager Contract to adjust the pay gap between City Manager and the next highest paid employee.
PREVIOUS COUNCIL ACTION:
Council appointed Mr. Westbrook as Interim City Manager on February 1, 2022.
On April 21, 2022, Council conducted interviews of candidates and provided directions to negotiate terms of employment with Tom Westbrook as City Manager.
The City Council approved the current five (5) year City Manager Contract on March 5, 2024, with an effective date of May 2, 2024.
The City Council met and discussed the contract in closed session on June 2, 2026.
DISCUSSION:
With the newly negotiated Longevity incentives going forward for the Management Unit (an extra 5%), the City Manager and next highest paid employee will be making the same salary starting in July.
Previously, the Management Unit Labor Agreement language included Longevity as a Step and so was considered part of ‘base pay’. But with all the language updates to be CalPERS compliant, longevity is now an incentive and base pay is clearly defined as what is on the Salary Schedule alone.
The next highest paid employee will be eligible for 10% total in longevity incentive, placing him at the same pay as the City Manager, who does not have the benefit of these incentives.
The original intent during the City Manager contract negotiation was to ensure that the City Manager’s salary was 10% higher than the next highest paid employee. Now this contract language is no longer in alignment with the new Management Agreement and his contract will have to be amended to ensure that the terms of the original contract are being followed.
Upon hearing of this salary issue the City Manager has decided to only accept a 5% difference between himself and the next highest paid employee. This decision is based on the current financial status of the City, the negotiated wages from the most recent round of labor contracts, and being mindful of similarly situated City Manager’s in our local area.
Therefore the proposed change is for a 5% difference in pay instead of a 10% difference as contractually mandated in the current agreement.
Current Contract Language:
Paragraph 3 of the current contract, effective date of May 2, 2024 states as follows:
3. Compensation.
A. City shall pay Employee for the performance of Employee’s duties as City Manager under this Agreement an annual base salary of $196,875.00 (One Ninety Six Thousand , Eight Hundred Seventy five Dollars).
i. City shall increase pay of the employee by 3% COLA negotiated by all employe group on July 1, 2024, July 1, 2025, and any future COLA’s approved employee groups.
ii. In no case during this Employment Agreement shall the compensation of Employee fall within 10% of the next highest compensated employee. Compensation includes salary.
Proposed Contract Amendment:
In compliance with Government Code Section 54953(c)(3), the City Council must orally report a summary of the recommendation for final action for action on salaries, salary schedule, or compensation paid in the form of fringe benefits of a local agency executive in the meeting which the final action is to be taken. Such summary is as follows:
The City Council is proposing a 1st Amendment to paragraph 3 of the contract with Tom Westbrook as City Manager as follows:
3. Compensation.
A. City shall pay Employee for the performance of Employee’s duties as City Manager under this Agreement an annual base salary of $196,875.00 (One Ninety Six Thousand , Eight Hundred Seventy five Dollars).
i. City shall increase pay of the employee by 3% COLA negotiated by all employe group on July 1, 2024, July 1, 2025, and any future COLA’s approved employee groups.
ii. In no case during this Employment Agreement shall the compensation of Employee fall within 5% of the next highest compensated employee’s rate of pay; compensation includes salary, longevity, and specialty incentives (excluding temporary upgrade or out of class pay).
All other terms of the original contract shall remain the same.
CITY FISCAL IMPACT:
5% pay gap: Approximately $423.59 per bi-weekly payroll or $11,013.34 per fiscal year.
10% pay gap: Approximately $847.19 per bi-weekly payroll or $22,026.94 per fiscal year.
ATTACHMENTS:
1. Current City Manager Contract
2. Proposed 1st Amendment to City Manager Contract