{"MatterTextId":16440,"MatterTextGuid":"B8505C35-653F-4853-A1DB-2251FBBB1DFF","MatterTextLastModifiedUtc":"2025-10-03T23:30:53.837","MatterTextRowVersion":"AAAAAAGYF0A=","MatterTextMatterId":16363,"MatterTextVersion":"1","MatterTextPlain":"REPORT TO COUNCIL\n\nSUBJECT\n..Title\nProvide Direction Regarding Amending the Employment Agreement Between the City of Sunnyvale and City Manager Tim Kirby to Increase the City Manager Salary and Allow Additional Paid Time Off Cashout\n\n..Report\nBACKGROUND\nThe City Council Ad Hoc Committee on City Manager Compensation met on June 24, 2025, and September 18, 2025, to discuss and develop recommendations regarding the City Manager's Employment Agreement. Section 3 of the City Manager's Employment Agreement provides for performance evaluations and salary adjustments. Section 3.3 of the City Manager's Employment Agreement provides for an annual salary increase of three percent (3.0%), beginning with the pay period including September 1. The City Council may choose to modify the annual salary increases by a majority vote. The City Manager's compensation must be determined in a public meeting, and this report presents the opportunity for the City Council to facilitate a public discussion.\n\nEXISTING POLICY\nCouncil Policy 7.3.1 Legislative Management - Goals and Policies, Goal 7.3D: Maintain a quality work force, Consistent with state and federal laws, City Charter, and adopted policies in order to assure that City services are provided in an effective, efficient, and high-quality manner.\n\nENVIRONMENTAL REVIEW\nThe action being considered does not constitute a \"project\" with the meaning of the California Environmental Quality Act (\"CEQA\") pursuant to CEQA Guidelines section 15378(b)(4) in that is a fiscal activity that does not involve any commitment to any specific project which may result in a potential significant impact on the environment.\n\nDISCUSSION\nTim Kirby was appointed City Manager on September 1, 2024, with an annual salary of $398,000.  Section 3.3 of the City Manager's Employment Agreement provides for an annual salary increase of three percent (3.0%), beginning with the pay period including September 1. City Manager Kirby received a 3.0% increase, effective August 31, 2025, and his current annual salary is $409,940.\n\nThe City Council Ad Hoc Committee on City Manager Compensation makes two recommendations:\n(1) Increase the City Manager's salary by an additional 1% from $409,940 to $414,040, effective October 26, 2025; and\n(2) Allow the City Manager to cash out 100 additional hours of Paid Time Off (PTO), from his existing PTO balance on a one-time basis in the current calendar year. \n\nThe current adopted salary range for the City Manager is $302,041 - $422,749, and the Committee's recommendation is within that range.  However, if the Council desires to increase the City Manager's compensation beyond the existing salary range, the salary schedule must be amended to reflect any change to the City Manager salary range to ensure the CalPERS requirement that employee compensation is within rates on a publicly available salary schedule. \n\nFISCAL IMPACT\nThe Fiscal Year (FY) 2025/26 Adopted Budget has budgeted a 4% increase for the City Manager Classification, which is sufficient to accommodate the Ad Hoc Committee recommendation.\n\nPUBLIC CONTACT\nPublic contact was made by posting the Council meeting agenda on the City's official-notice bulletin board at City Hall, at the Sunnyvale Public Library and in the Department of Public Safety Lobby. In addition, the agenda and this report are available at the City Hall reception desk located on the first floor of City Hall at 456 W. Olive Avenue (during normal business hours), and on the City's website.\n\nALTERNATIVES\n1. Authorize the Mayor to execute an Amendment to the Employment Agreement between the City of Sunnyvale and City Manager Tim Kirby in substantially the same form attached to (1) Increase City Manager Salary by one percent and (2) Allow a one-time additional cash out of 100 hours from the existing Paid Time Off (PTO) balance, effective October 26, 2025.\n2. Provide other direction to staff for the City Manager compensation.\n\nSTAFF RECOMMENDATION\n..Recommendation\nStaff makes no recommendation. This report is developed to facilitate discussion for the public hearing and action by the City Council.\n\n..Levine Act\nLEVINE ACT\nThe Levine Act (Gov. Code Section 84308) prohibits city officials from participating in certain decisions regarding licenses, permits, and other entitlements for use if the official has received a campaign contribution of more than $500 from a party, participant, or agent of a party or participant in the previous 12 months. The Levine Act is intended to prevent financial influence on decisions that affect specific, identifiable persons or participants. For more information see the Fair Political Practices Commission website: www.fppc.ca.gov/learn/pay-to-play-limits-and-prohibitions.html\n\nAn \"X\" in the checklist below indicates that the action being considered falls under a Levine Act category or exemption:\n\nSUBJECT TO THE LEVINE ACT\n___ Land development entitlements\n___ Other permit, license, or entitlement for use\n___ Contract or franchise\n\nEXEMPT FROM THE LEVINE ACT\n___ Competitively bid contract*\n_X_ Labor or personal employment contract\n___ Contract under $50,000 or non-fiscal \n___ Contract between public agencies\n___ General policy and legislative actions\n\n* \"Competitively bid\" means a contract that must be awarded to the lowest responsive and responsible bidder.\n\n\n..Staff \nPrepared by: Tina Murphy, Director of Human Resources\nReviewed by: Matt Paulin, Director of Finance\nReviewed by: Sarah Johnson-Rios, Assistant City Manager\n\nATTACHMENTS   \n1. 2025 City Manager Compensation Survey\n2. Draft First Amendment to Agreement for Services between the City of Sunnyvale and Tim Kirby, City Manager for the City of Sunnyvale\n\n","MatterTextRtf":"{\\rtf1\\fbidis\\ansi\\ansicpg1252\\deff0\\deflang1033\\deflangfe1028{\\fonttbl{\\f0\\fswiss\\fprq2\\fcharset0 Arial;}{\\f1\\fswiss\\fprq2\\fcharset0 Aptos;}}\n{\\colortbl ;\\red0\\green0\\blue0;}\n\\viewkind4\\uc1\\pard\\ltrpar\\nowidctlpar\\b\\f0\\fs28 REPORT TO COUNCIL\\line\\cf1\\ul\\fs24\\line SUBJECT\\par\n\\ulnone\\b0 ..Title\\par\n\\cf0 Provide Direction Regarding Amending the Employment Agreement Between the City of Sunnyvale and City Manager Tim Kirby to Increase the City Manager Salary and Allow Additional Paid Time Off Cashout\\par\n\\cf1\\par\n..Report\\par\n\\ul\\b BACKGROUND\\ulnone\\b0\\par\nThe City Council Ad Hoc Committee on City Manager Compensation met on June 24, 2025, and September 18, 2025, to discuss and develop recommendations regarding the City Manager\\rquote s Employment Agreement. Section 3 of the City Manager\\rquote s Employment Agreement provides for performance evaluations and salary adjustments. Section 3.3 of the City Manager\\rquote s Employment Agreement provides for an annual salary increase of three percent (3.0%), beginning with the pay period including September 1. The City Council may choose to modify the annual salary increases by a majority vote. The City Manager\\rquote s compensation must be determined in a public meeting, and this report presents the opportunity for the City Council to facilitate a public discussion.\\par\n\\par\n\\ul\\b EXISTING POLICY\\ulnone\\b0\\par\nCouncil Policy 7.3.1 Legislative Management - Goals and Policies, Goal 7.3D: Maintain a quality work force, Consistent with state and federal laws, City Charter, and adopted policies in order to assure that City services are provided in an effective, efficient, and high-quality manner.\\par\n\\par\n\\ul\\b ENVIRONMENTAL REVIEW\\ulnone\\b0\\par\nThe action being considered does not constitute a \\ldblquote project\\rdblquote  with the meaning of the California Environmental Quality Act (\\ldblquote CEQA\\rdblquote ) pursuant to CEQA Guidelines section 15378(b)(4) in that is a fiscal activity that does not involve any commitment to any specific project which may result in a potential significant impact on the environment.\\par\n\\par\n\\ul\\b DISCUSSION\\ulnone\\b0\\par\nTim Kirby was appointed City Manager on September 1, 2024, with an annual salary of $398,000.  Section 3.3 of the City Manager\\rquote s Employment Agreement provides for an annual salary increase of three percent (3.0%), beginning with the pay period including September 1. City Manager Kirby received a 3.0% increase, effective August 31, 2025, and his current annual salary is $409,940.\\par\n\\par\nThe City Council Ad Hoc Committee on City Manager Compensation makes two recommendations:\\par\n\\pard\\ltrpar\\nowidctlpar\\fi-360\\li720 (1)\\tab Increase the City Manager\\rquote s salary by an additional 1% from $409,940 to $414,040, effective October 26, 2025; and\\par\n(2)\\tab Allow the City Manager to cash out 100 additional hours of Paid Time Off (PTO), from his existing PTO balance on a one-time basis in the current calendar year. \\par\n\\pard\\ltrpar\\nowidctlpar\\par\nThe current adopted salary range for the City Manager is $302,041 - $422,749, and the Committee\\rquote s recommendation is within that range.  However, if the Council desires to increase the City Manager\\rquote s compensation beyond the existing salary range, the salary schedule must be amended to reflect any change to the City Manager salary range to ensure the CalPERS requirement that employee compensation is within rates on a publicly available salary schedule. \\par\n\\par\n\\ul\\b FISCAL IMPACT\\ulnone\\b0\\par\nThe Fiscal Year (FY) 2025/26 Adopted Budget has budgeted a 4% increase for the City Manager Classification, which is sufficient to accommodate the Ad Hoc Committee recommendation.\\par\n\\par\n\\ul\\b PUBLIC CONTACT\\ulnone\\b0\\par\nPublic contact was made by posting the Council meeting agenda on the City's official-notice bulletin board at City Hall, at the Sunnyvale Public Library and in the Department of Public Safety Lobby. In addition, the agenda and this report are available at the City Hall reception desk located on the first floor of City Hall at 456 W. Olive Avenue (during normal business hours), and on the City's website.\\par\n\\par\n\\ul\\b ALTERNATIVES\\ulnone\\b0\\par\n\\pard\\ltrpar\\nowidctlpar\\fi-360\\li720 1.\\tab Authorize the Mayor to execute an Amendment to the Employment Agreement between the City of Sunnyvale and City Manager Tim Kirby in substantially the same form attached to (1) Increase City Manager Salary by one percent and (2) Allow a one-time additional cash out of 100 hours from the existing Paid Time Off (PTO) balance, effective October 26, 2025.\\par\n2.\\tab Provide other direction to staff for the City Manager compensation.\\par\n\\pard\\ltrpar\\nowidctlpar\\par\n\\ul\\b STAFF RECOMMENDATION\\ulnone\\b0\\par\n..Recommendation\\par\nStaff makes no recommendation. This report is developed to facilitate discussion for the public hearing and action by the City Council.\\par\n\\par\n..Levine Act\\par\n\\ul\\b LEVINE ACT\\par\n\\ulnone\\b0 The Levine Act (Gov. Code Section 84308) prohibits city officials from participating in certain decisions regarding licenses, permits, and other entitlements for use if the official has received a campaign contribution of more than $500 from a party, participant, or agent of a party or participant in the previous 12 months. The Levine Act is intended to prevent financial influence on decisions that affect specific, identifiable persons or participants. For more information see the Fair Political Practices Commission website: www.fppc.ca.gov/learn/pay-to-play-limits-and-prohibitions.html\\par\n\\par\nAn \\ldblquote X\\rdblquote  in the checklist below indicates that the action being considered falls under a Levine Act category or exemption:\\par\n\\pard\\ltrpar\\nowidctlpar\\li720\\par\n\\b SUBJECT TO THE LEVINE ACT\\par\n\\ul\\b0 ___\\ulnone  Land development entitlements\\par\n\\ul ___\\ulnone  Other permit, license, or entitlement for use\\par\n\\ul ___\\ulnone  Contract or franchise\\par\n\\par\n\\b EXEMPT FROM THE LEVINE ACT\\par\n\\ul\\b0 ___\\ulnone  Competitively bid contract*\\par\n\\ul _X_\\ulnone  Labor or personal employment contract\\par\n___ Contract under $50,000 or non-fiscal \\par\n___ Contract between public agencies\\par\n\\ul ___\\ulnone  General policy and legislative actions\\par\n\\par\n* \"Competitively bid\" means a contract that must be awarded to the lowest responsive and responsible bidder.\\par\n\\pard\\ltrpar\\nowidctlpar\\par\n\\par\n..Staff \\line Prepared by: Tina Murphy, Director of Human Resources\\par\nReviewed by: Matt Paulin, Director of Finance\\line Reviewed by: Sarah Johnson-Rios, Assistant City Manager\\par\n\\par\n\\ul\\b ATTACHMENTS\\ulnone    \\b0\\par\n\\pard\\ltrpar\\fi-360\\li720 1.\\tab 2025 City Manager Compensation Survey\\par\n\\pard\\ltrpar\\fi-360\\li720\\sl276\\slmult1 2.\\tab Draft First Amendment to Agreement for Services between the City of Sunnyvale and Tim Kirby, City Manager for the City of Sunnyvale\\par\n\\pard\\ltrpar\\sa160\\sl276\\slmult1\\cf0\\kerning2\\f1\\par\n}\n"}