REPORT TO COUNCIL
SUBJECT
Title
Provide Direction Regarding Amending the Employment Agreement Between the City of Sunnyvale and City Manager Tim Kirby to Increase the City Manager Salary and Allow Additional Paid Time Off Cashout
Report
BACKGROUND
The City Council Ad Hoc Committee on City Manager Compensation met on June 24, 2025, and September 18, 2025, to discuss and develop recommendations regarding the City Manager's Employment Agreement. Section 3 of the City Manager's Employment Agreement provides for performance evaluations and salary adjustments. Section 3.3 of the City Manager's Employment Agreement provides for an annual salary increase of three percent (3.0%), beginning with the pay period including September 1. The City Council may choose to modify the annual salary increases by a majority vote. The City Manager's compensation must be determined in a public meeting, and this report presents the opportunity for the City Council to facilitate a public discussion.
EXISTING POLICY
Council Policy 7.3.1 Legislative Management - Goals and Policies, Goal 7.3D: Maintain a quality work force, Consistent with state and federal laws, City Charter, and adopted policies in order to assure that City services are provided in an effective, efficient, and high-quality manner.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a "project" with the meaning of the California Environmental Quality Act ("CEQA") pursuant to CEQA Guidelines section 15378(b)(4) in that is a fiscal activity that does not involve any commitment to any specific project which may result in a potential significant impact on the environment.
DISCUSSION
Tim Kirby was appointed City Manager on September 1, 2024, with an annual salary of $398,000. Section 3.3 of the City Manager's Employment Agreement provides for an annual salary increase of three percent (3.0%), beginning with the pay period including September 1. City Manager Kirby received a 3.0% increase, effective August ...
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