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Agreement to Appoint City Manager <br />March 19, 2019 <br />Page 2 <br />• Termination: The agreement provides for at -will employment and does not contain a <br />severance provision. However, it also contains the Government Code disclosure providing <br />that any termination agreed to in the future may not contain a payout of more than 18 months <br />of the value of salary. <br />FISCAL IMPACT <br />If the City Manager candidate begins employment with the City on May 1, 2019, the estimated cost <br />of the Agreement for the remainder of Fiscal Year 2018-19 is $64,137. The estimated cost for <br />Fiscal Year 2019-20 is $388,616. A spreadsheet detailing the estimated costs is attached to this <br />report. <br />The Agreement will be paid from the 61000 series of accounts in the City Manager Accounting Unit <br />01103010 of the General Fund. Staff expects to provide an update of the City Manager's budget <br />with the updated Mid -Year budget report scheduled for the April 2, 2019 agenda. <br />Providing the Council with a Mid -Year budget report and the Finance Department's requests for <br />various actions is a long standing practice. This practice allows the Council to make necessary <br />adjustments to the budget to reflect current conditions or unanticipated changes. It has also been <br />a long-standing practice of the City not to budget within individual departments for severance <br />payments or cash -outs resulting from staff departures or retirements, as they cannot be anticipated. <br />This year the City Manager's Office experienced a departure with approval of a substantial <br />severance payment and cash -outs for two additional departures which depleted funds in the City <br />Manager's accounting unit. As these actions do not change the operations of the department staff <br />will seek a Mid -Year Budget request rather than an appropriation adjustment because funding the <br />City Manager position was originally anticipated in the Fiscal Year 18-19 Budget and is not the <br />result of anticilpated expenses. <br />Executive Dirdctor <br />Human Resources Department <br />APPROVED AS TO FUNDS AND ACCOUNTS: <br />14�� <br />Kathryn Downs <br />Executive Director <br />Finance and Management Services Agency <br />Exhibits: 1. City Manager Employment Agreement <br />2. Estimated Cost of Proposed City Manager Agreement <br />25D-2 <br />