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Report regarding a resolution approving an employment agreement between the City of South San Francisco and Sharon Ranals for service as City Manager and amending the Fiscal Year 2022-23 Salary Schedule to reflect changes in the salary for the City Manager position. (Sky Woodruff, City Attorney)
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RECOMMENDATION
Recommendation
Adopt a resolution approving an employment agreement between the City of South San Francisco and Sharon Ranals for service as the City Manager and amending the Fiscal Year 2022-23 Salary Schedule to reflect changes in the salary for the City Manager position.
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BACKGROUND/DISCUSSION
On November 17, 2022, City Manager Mike Futrell announced his intention to resign from his position as City Manager of the City of South San Francisco after more than eight years of service with the City. Mr. Futrell’s last day of active service as City Manager was December 24, 2022, and last day of employment with the City was January 8, 2023. As plans to recruit for a new City Manager got underway, Council identified a need for an Interim City Manager while the position is vacant and until a permanent City Manager appointment is made.
At its December 14, 2022, meeting, Council adopted a resolution appointing Sharon Ranals as Acting City Manager from December 24, 2022 to January 8, 2023 and as Interim City Manager after January 8, 2023 and until such time the position of City Manager is filled on a permanent basis. The resolution further directed the Ad Hoc Subcommittee to negotiate the terms of an employment agreement with Ms. Ranals for her service as Interim City Manager. At its January 11, 2023, meeting, the City Council approved an employment agreement between the City and Ms. Ranals to serve as Interim City Manager.
As planning for a City Manager recruitment progressed, the City Council, Ad Hoc Subcommittee, and Ms. Ranals discussed the possibility of Ms. Ranals taking on the City Manager position. The Ad Hoc Subcommittee and Ms. Ranals negotiated the terms of an employment agreement for Ms. Ranals to serve as City Manager, which is attached to the proposed resolution.
Ms. Ranals served as the City’s Assistant City Manager starting in August 2019. Prior to her appointment as Assistant City Manager, she served as the City’s Parks and Recreation Director for fifteen years. Due to her depth of knowledge and experience Ms. Ranals is highly qualified to serve as the City’s City Manager.
The proposed agreement is the result of discussions among the Ad Hoc Subcommittee, Ms. Ranals, the Director of Human Resources, and City Attorney. It sets the annual base salary for the City Manager position at $350,000.00, or $29,166.67 per pay month. Based on a draft of the salary survey currently being prepared, that amount is 5.4% above the 60th percentile of the labor market, using the City’s standard comparable cities. It is 9.01% above the current base salary of the Police Chief, which will increase by 3% in July. Ms. Ranals’ s base salary would be adjusted by any across-the-board changes to salaries for employees in the Executive Management Unit in July 2024 and thereafter, subject to a satisfactory performance evaluation. Benefits would be the same as provided to employees in the Executive Management Unit. The agreement allows Ms. Ranals to accrue vacation above the 480-hour cap in the Executive Management Compensation Plan until an Assistant City Manager begins work for the City. Ms. Ranals will take a vacation once that person starts work. Additionally, Ms. Ranals will cash out accrued vacation leave above the cap.
The resolution amends the Fiscal Year 2022-23 Salary Schedule to reflect the change to the base salary for the position of City Manager as stated above.
FISCAL IMPACT
There is no direct fiscal impact for this item. Although the City Manager base salary will be greater than the budgeted amount for the City Manager position, a budget amendment is not necessary because of the salary savings resulting from the Assistant City Manager position remaining vacant until someone starts in that position.
RELATIONSHIP TO STRATEGIC PLAN
A City Manager is essential to maintaining efficient and effective operations. The City Manager will provide continued oversight to staff and support to City Council for implementation of all strategic objectives.
CONCLUSION
It is recommended that City Council adopt the attached resolution authorizing the Mayor to execute the employment agreement with Sharon Ranals for service as the City Manager and amending the Fiscal Year 2022-23 Salary Schedule to reflect changes in the salary of the position of City Manager.