May 27, 2009

The San Leandro City Manager's Contract

In last week's San Leandro Times, San Leandro City Manager Stephen Hollister refuted a claim that the City of San Leandro is paying a consulting fee to former City Manager John Jermanis. San Leandro Bytes recently confirmed that there is no contract with Jermanis by filing a California Public Records Act request with the City of San Leandro.

Hollister became Interim City Manager when Jermanis retired in September 2008. In December 2008, Hollister was named City Manager, but the employment agreement is dated January 20, 2009. The agreement states that "City agrees to pay Employee a salary 15% above step five of the salary range of the highest paid City management employee..." According to the "City of San Leandro SLMO Salary Schedule," that is $14,688 per month for the Assistant City Manager and Police Chief. Fifteen percent above that is $16,891 per month, or $202,694 per year. [Editor's Note: On May 20, 2009, the Daily Review reported Hollister's salary as $200,738.98.] The City Manager's salary does not include other benefits, such as an automobile allowance, insurance and retirement benefits.

An electronic copy of the City Manager Employment Agreement can be found online. The entire text of the agreement and the City Manager's goals are included below.


THIS AGREEMENT is between the CITY OF SAN LEANDRO ("City") and STEPHEN L. HOLLISTER and is dated for convenience this 20TH day of January 2009.


City desires to employ Stephen L. Hollister as City Manager of the City of San Leandro.

Stephen L. Hollister desires to serve as City Manager of the City of San Leandro.

The City Council as the appointing authority and Stephen L. Hollister desire to agree in writing to the terms and conditions of Stephen L. Hollister's employment as City Manager.


(a) City agrees to employ Stephen L Hollister Employee as City Manager of the City of San Leandro to perform the functions and duties specified in the charter, ordinances, and resolutions of City. Employee shall also perform other legally permissible and proper duties and functions as the City Council may from time to time assign.

(b) Employee shall perform his duties to the best of his ability in accordance with the highest possible and ethical standards of the profession and shall comply with all general rules and regulations established by the City.

(c) Employee shall not engage in any activity that is or may become a conflict of interest, prohibited contract, or which may create an incompatibility of office as defined under California law. Prior to performing any services under this Agreement and annually thereafter, the Employee must complete disclosure forms required by law.


(a) The term of this Agreement shall commence on December 15, 2008 and terminate on June 30, 2010. This agreement may be terminated in accordance with the provisions set forth in Paragraph 3 or terminated by the event of the death or permanent disability of Employee.

(b) Employee agrees to remain in the exclusive employ of the City during the term of the Agreement.

(c) City agrees to give the Employee at least 180 days notice if it does not intend to renew or extend this agreement upon its expiration.


(a) Employee may resign at any time with or without cause and agrees to give City at least ninety (90) days advance written notice of the effective date of his resignation. Upon notice of resignation, or sooner, Employee, in consultation with the City Council will develop a "transition plan" and Employee will, if requested, assist the City Council in the recruitment and hiring process for the position of City Manager on a permanent or interim basis.

(b) Subject to the provisions of the Charter, City may at any time terminate Employee upon thirty (30) days advance written notice.

(c) The parties recognize and affirm that: 1) Employee is an at will employee whose employment may be terminated by the City without cause, and 2) there is no express or implied promise made to Employee for any form of continued employment. This Agreement is the sole and exclusive basis for an employment relationship between Employee and City.


If Employee is terminated by the City Council while still willing and able to perform the duties of City Manager, City agrees to pay Employee a cash payment equal to six (6) months salary and benefits. At the option of the Employee, the cash payment may be paid in (1) a lump sum upon date of termination; or (2) a lump sum on January 1 of the calendar year following termination. Such payment will release City from any further obligations under this Agreement. Provided however, if Employee is terminated for cause, including but not limited to conviction of any criminal offense then City shall have no obligation to continue the employment of Employee in any capacity.


For the term of this Agreement City agrees to pay Employee a salary 15% above step five of the salary range of the highest paid City management employee as shown in the City Council adopted Pay Plan (hereafter referred to as the "Baseline Salary"). Employee's compensation shall be adjusted whenever the Baseline Salary is adjusted so that Employee's salary shall not be less than 15% above the Baseline Salary at any time during the term of the Agreement.


Employee's duties require that he shall have the use of an automobile at all times during his employment with City. At the option of Employee, City shall either provide Employee with an automobile or reimburse Employee $475.00 per month for the expense of owning maintaining and insuring a personal automobile.


The City shall provide the Employee the same benefits as provided to management employees and as they may be amended from time to time. All actions taken by the City relating to benefits for management employees shall be considered actions granting the same benefits to Employee. As used herein and without limitation of the foregoing benefits for Employee include but are not limited to twenty-five (25) days of annual vacation leave, twelve (12) days of annual sick leave, management incentive pay of 120 hours per calendar year paid equally at each pay period, holidays, retirement benefits and payments, health insurance, dental insurance, life insurance and management development allowance.


The City Council shall evaluate Employee's performance at least annually. In addition, every year, the City Council and Employee will set goals and objectives for the ensuing year (Exhibit A hereof).


The City Council by resolution shall fix any other terms and conditions of employment as it may determine from time to time relating to the performance of Employee, provided such terms and conditions are not inconsistent with provisions of this Agreement or law.


Any notices required by this Agreement shall be in writing and either given in person or by first-class mail with postage prepaid and addressed as follows:

TO CITY: City Council
c/o Mayor Anthony B Santos
City of San Leandro
835 East 14th Street
San Leandro CA 94577

TO EMPLOYEE: Stephen L Hollister
City Manager
City of San Leandro
835 East 14th Street
San Leandro CA 94577


Any controversy or claim arising out of or pertaining to this Agreement or breach thereof, shall be settled by arbitration in accordance with the rules of the American Arbitration Association, and judgment upon the award rendered by the arbitrator(s) may be enforced as provided by California law.


This Agreement is the final expression of the complete agreement of the parties with respect to the matters specified herein and supersedes all prior oral or written understandings. Except as prescribed herein, this Agreement cannot be modified except by written mutual agreement signed by the parties.


This Agreement is not assignable by either City or Employee.


In the event that any provision of this Agreement is finally held or determined to be illegal or void by a court having jurisdiction over the parties, the remainder of the Agreement shall remain in full force and effect unless the parts found to be void are wholly inseparable from the remaining portion of the Agreement.


This Agreement shall be executed simultaneously in three counterparts, which shall be identified by number, and each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

IN WITNESS WHEREOF, The City has caused this Agreement to be signed and executed on its behalf by its Mayor and duly attested by the City Clerk. It has also been executed by the Employee.

Stephen L. Hollister, Employee

Anthony B. Santos, Mayor
City of San Leandro

City Clerk, Marian Handa

City Attorney, Jayne W. Williams


The following City Manager goals reflect City Council's Fiscal Year 2008-09 goals as modified by changing circumstances including the fiscal crisis and personnel changes and a review of the Interim City Manager's goals and objectives These goals will be updated and modified for Fiscal Year 2009-10.

- Adoption of a balanced budget plan and FY2009-2010 budget
- Advocacy of City projects for Federal stimulus funding
- Approval of Kaiser/ICI Development Agreement and approval of San Leandro Crossings TOD Project
- Work with Stakeholders on revenue enhancement measures
- Council review and prioritization of CIP process, including criteria for use of park development funds (i.e. WW, TOD, park fees)
- Recruitment of permanent Police Chief and Assistant City Manager
- Approval of SLUSD Ninth Grade Academy/Gymnasium Agreement and analyze with the District(s) City School growth impacts
- Continue Downtown development and beautification
- Succession planning
- Continued development of Shoreline Master Plan

Posted by Mike Katz-Lacabe at May 27, 2009 11:32 PM | TrackBack
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