January 17, 2012

New City Manager Contract Differs Slightly from Previous Contract

At tonight's meeting of the San Leandro City Council, the contract for newly appointed City Manager Chris Zapata will be considered and voted upon. The selection of Zapata was approved 6-0 on January 5, 2012.

Zapata's contract is very similar to former City Manager Stephen Hollister's contract, with a few important exceptions.

The contract is in effect until January 2015 (three years), while Hollister's last contract was for one year.

Hollister's salary was listed in his contract as "15% above step five of the salary range of the highest paid City management employee." This meant that he had a salary of $202,694 in 2010, which was reduced to $194,507 by furlough days. Zapata gets a bump in base salary to $223,000.

Zapata will also receive a one-time payment of $16,500 to cover moving expenses, but will to have to reimburse it on a pro-rated basis if he leaves before January 2015.

However, the new contract does not include a $475 monthly automobile allowance that totaled $5,700 annually for Hollister.

A provision of the contract that calls for Zapata to pay his own contribution to the CalPERS pension plan likely sets the stage for negotiations with the City's bargaining groups, whose current agreements expire at the end of the year. The City currently pays the entire employee portion of the CalPERS contribution for all employees. For Hollister, that meant an additional $17,782 in compensation and the number for Zapata would have been closer to $20,000.

The amount of notice required for the City Manager to terminate the agreement has been reduced from 90 days to 45 days.

Details that remain unchanged are the amount of severance pay, which remains at six months of compensation if the City terminates the contract without cause and no compensation if the contract is terminated for cause. Also unchanged are 25 vacation days, 12 sick days, "management incentive pay of 120 hours per calendar year," and City-paid membership in the International City Management Association, League of California Cities, and local civic groups.

Based on the numbers above and estimates for things such as health insurance and the employer contribution to CalPERS, Zapata's total compensation will likely be close to or exceed Hollister's by a few thousand dollars.

Zapata, who currently serves as National City's City Manager is scheduled to start on January 30, 2012.

Posted by Mike Katz-Lacabe at January 17, 2012 8:12 AM | TrackBack
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