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File Number: 12-554 <br /> Constant turnover has created an internal challenge and workload issue that we are <br /> continually addressing as an organization today. Institutional knowledge is lost when longtime <br /> or high level executives depart. The recruitment and replacement time to fill positions is a <br /> resource drain. Further, this situation is compounded by the demise of the redevelopment <br /> authority and related resources as well as the loss of 20% of the employee workforce. With <br /> all that there are some positives that arise from departures. <br /> Executive vacancies provide an opportunity to promote from within or recruit new talent to the <br /> organization. That is a positive; however, with the current executive changes, stability has <br /> become an operational challenge. A City Manager's key responsibility is to retain and recruit <br /> a quality executive team and to deal with the uncertainty created by a changing job market. <br /> Retention of the Police Chief and Assistant City Manager for an extended period is a positive <br /> for the organization, but more importantly it is critical to the community. <br /> The City Attorney and City Manager have worked with the San Leandro Management <br /> Organization as well as the Human Resources Manager to reach an agreement that the <br /> Police Chief and Assistant City Manager negotiate individual contracts. The City Charter <br /> provides that these positions are at-will to the City Manager. These reporting relationships <br /> and recommendations are consistent in that regard. <br /> DISCUSSION <br /> The Police Chief is important to the community, the organization and certainly the City <br /> Manager. The Assistant City Manager is equally important to the organization and the City <br /> Manager. Stability and keeping talented executives is important to the City Council, <br /> community and organization. The proposed language provides for commitments by both <br /> individuals to work through 2017 in San Leandro. <br /> Council goals of keeping the community safe and fiscal sustainability were key points in the <br /> development of the proposal. As such the agreements call for each to pay the full employee <br /> share of retirement costs by the end of the agreements. In the case of the Police Chief, that <br /> would be a 9% payment and in the case of the Assistant City Manager an 8% contribution. <br /> This is consistent with the City Council paying their full retirement costs and the City Manager <br /> paying his full employee retirement costs. <br /> In return for the full retirement contribution and 5 year commitment by Chief Spagnoli and <br /> Assistant City Manager Marshall, a net salary increase is realized in the 3rd, 4th and 5th years <br /> of the contract. The total net increase is 3.5% for both positions. To deal with market realities <br /> a $10,000 base salary increase is recommended for both effective January 1, 2013 which will <br /> not increase budgeted costs. This is offset by the City Manager agreeing to a $20,000 pay <br /> reduction effective January 1, 2013 and annually through the remainder of his contract which <br /> expires in two years. <br /> There are also important provisions to note that provide non Public Employee Retirement <br /> System increases such as uniform pay for Chief Spagnoli, and capped monthly medical and <br /> dental benefit pay. The average monthly payment for employee medical and dental benefits <br /> is approximately $1200 per month, this proposal requests an amount of$1400 per month then <br /> capped at$1500 per month in the final years of the proposed agreement. With rising health <br /> care costs it is important for the City Council to begin developing employee programs that are <br /> City of San Leandro Page 2 Printed on 11113/2012 <br />