REPORT TO COUNCIL
SUBJECT
Title
Appointment of Interim City Manager and Approval of Employment Agreement
Report
BACKGROUND
City Manager Kent Steffens has provided his notice of retirement to the City Council. Mr. Steffens’ last day of employment with the City will be June 28, 2024. The City has started the recruitment process to select a new City Manager. However, the City needs an Interim City Manager until the recruitment process is completed and a new City Manager begins employment.
EXISTING POLICY
Section 800 of the Sunnyvale City Charter states, in part, “The City Manager shall be chosen by the City Council on the basis of his/her executive and administrative qualifications….”
ENVIRONMENTAL REVIEW
Appointment of an Interim City Manager is not a “project” with the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(5) in that it is a governmental organizational or administrative activity that will not result in direct or indirect changes in the environment.
DISCUSSION
On April 23, 2024 and April 30, 2024, the City Council discussed the Interim City Manager appointment and selected Tim Kirby, contingent on reaching agreement regarding compensation and benefits.
Tim Kirby, the City’s current Director of Finance, has agreed to serve as interim City Manager effective June 29, 2024, until a new City Manager begins employment with the City of Sunnyvale. The City conducted negotiations with Mr. Kirby and the salary as Interim City Manager will be approximately $383,259 per year, an increase of 15% above Mr. Kirby’s current salary and within the City Manager salary range. Attached is an employment agreement for services as Interim City Manager that outlines the terms and conditions of Mr. Kirby’s employment in this interim appointment.
FISCAL IMPACT
The cost for the City Manager is budgeted in the operating program for the City Manager’s Office. Although the recruitment process will take some time, the impact of this appointment can be absorbed in the current budget.
PUBLIC CONTACT
Public contact was made by posting the Council meeting agenda on the City's official-notice bulletin board at City Hall, at the Sunnyvale Public Library and in the Department of Public Safety Lobby. In addition, the agenda and this report are available at the NOVA Workforce Services reception desk located on the first floor of City Hall at 456 W. Olive Avenue (during normal business hours), and on the City's website.
ALTERNATIVES
1. Approve the appointment of Tim Kirby as Interim City Manager and authorize the Mayor to execute the employment agreement in substantially the format attached.
2. Do not approve the appointment of Tim Kirby as Interim City Manager and provide alternative action as approved by the City Council.
STAFF RECOMMENDATION
Recommendation
Staff makes no recommendation. This report is developed to facilitate conversation for the public hearing and action by the City Council.
Levine Act
LEVINE ACT
The Levine Act (Gov. Code Section 84308) prohibits city officials from participating in certain decisions regarding licenses, permits, and other entitlements for use if the official has received a campaign contribution of more than $250 from a party, participant, or agent of a party or participant in the previous 12 months. The Levine Act is intended to prevent financial influence on decisions that affect specific, identifiable persons or participants. For more information see the Fair Political Practices Commission website: www.fppc.ca.gov/learn/pay-to-play-limits-and-prohibitions.html
A check or “Y” in the checklist below indicates that the action being considered falls under a Levine Act category or exemption:
SUBJECT TO THE LEVINE ACT
___ Land development entitlements
___ Other permit, license, or entitlement for use
___ Contract or franchise
EXEMPT FROM THE LEVINE ACT
___ Competitively bid contract
_x_ Labor or personal employment
___ General policy and legislative actions
Staff
Prepared by: Tina Murphy, Director of Human Resources
Reviewed and Approved by: Sarah Johnson-Rios, Assistant City Manager
ATTACHMENTS
1. Interim City Manager Employment Agreement