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CC - ACTION ITEM: (1) Approval of Amended and Restated City Manager Executive Employment Agreement; and (2) Adoption of a Resolution Adopting the Classification and Salary Plan for Executive Management Relating to City Manager Salary Adjustment Effective December 28, 2026.

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Meeting Date: November 9, 2026

Contact Person/Dept.:  Dana Anderson/Human Resources Department

Phone Number:  (310) 253-5640

Fiscal Impact:  Yes [X]    No []                                          General Fund:  Yes [X]     No []

Attachments:   Yes [X]     No []   

Public Notification:   (E-Mail) Meetings and Agendas - City Council (11/04/2026)  

Department Approval:  Dana Anderson, Chief Human Resources Officer; Erin Spragan, Chief Financial Officer (11/04/2026)      _____________________________________________________________________

RECOMMENDATION

Staff recommends that the City Council (1) approve an Amended and Restated City Manager Executive Employment Agreement (Amended Agreement); and (2) adopt a resolution adopting the Classification and Salary Plan for Executive Management Relating to City Manager Salary Adjustment effective December 28, 2026.

BACKGROUND/DISCUSSION

The City entered into an Executive Employment Agreement with City Manager Odis Jones effective December 15, 2025. On March 9, 2026, the City Council approved an amendment to the Agreement addressing temporary housing assistance, vacation leave, and the Residency Incentive. The December 2025 agreement and March 2026 amendment are collectively referred to as the “2025 Agreement.” 

The 2025 Agreement set the current annual base salary at $370,000. Under Section 5.B, annual adjustments begin in December 2026 and are based on the Los Angeles metropolitan area Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) or the salary adjustment provided under the City’s Executive Compensation Plan, whichever is greater.

The City Manager has requested the following amendments to the 2025 Agreement, subject to City Council approval:

•                     Increase annual base salary to $415,000.

•                     Temporary 10% special compensation for service as Executive Director of the Culver City Public Finance Authority (CCPFA), retroactive from April 13, 2026 through December 27, 2026.

•                     Modification to Residency Incentive purchase-price limit, financing percentage and interest rate.

Base Salary and Salary Schedule

The proposed amendment would increase annual base salary from $370,000 to $415,000, an increase of $45,000, or approximately 12.16%, effective December 28, 2026, the first full pay period following the December 15, 2026 employment anniversary. The maximum annual salary step for the City Manager classification would be established at $415,000 effective concurrently, subject to future adjustments authorized by the City Council.

In consideration of this adjustment, the City Manager would not pursue, and would expressly waive, the contractual annual salary adjustment otherwise scheduled for December 2026 under Section 5.B of the 2025 Agreement.  This waiver would apply exclusively to the December 2026 annual adjustment.  Future annual salary adjustments, beginning December 2027, would continue to be governed by Section 5.B of the proposed Amended Agreement, unless otherwise modified by the City Council.  This waiver is separate from, and does not affect, the temporary CCPFA special compensation.

Temporary CCPFA Special Compensation

The proposed Amended Agreement would authorize temporary special compensation equal to 10% of current annual base salary for additional responsibilities associated with service as Executive Director of the CCPFA. Eligibility would begin retroactively on the Authority’s establishment date of April 13, 2026 and end on December 27, 2026, the day immediately preceding the effective date of the new base salary and salary schedule.

At the current $370,000 annual base salary, the special compensation equals $37,000 on an annualized basis. Payment would be prorated using the base salary in effect during each applicable pay period. The separate 10% payment would cease accrual after December 27, 2026, prior to the effective date of the proposed $415,000 base salary.  Unpaid amounts earned during the period of April 13, 2026 through December 27, 2026 would remain payable thereafter.

Residency Incentive

The proposed Amended Agreement would modify Exhibit B to increase the maximum eligible residential purchase price from $2.8 million to $3.5 million, increase allowable financing from 90% to 100% of the eligible purchase price, and replace the existing variable interest-rate provisions tied to (Local Agency Investment Fund (LAIF) investment yields with a fixed  annual interest rate of one-half percentage point greater than the effective yield on investments in the State of California Local Agency Investment Fund for the month immediately preceding execution of the loan agreement and fixed for the term of the loan.

These changes would increase the City’s maximum potential loan commitment from $2.8 million to $3.5 million, an increase of $700,000. Existing repayment, promissory note, first deed of trust, insurance, residency eligibility, acceleration, and other contractual protections would remain unchanged unless expressly amended by the Council. The geographic eligibility provisions of the 2025 Agreement would remain unchanged.

The request is intended to provide greater flexibility in establishing a permanent residence and greater predictability in financing costs. The loan would remain a secured repayment obligation. Approval of the revised program parameters would be separate from any additional authorization and funding required for an individual loan transaction.

Except for the provisions described above, no other terms or conditions are being modified at this time.

FISCAL ANALYSIS

The estimated incremental costs of the proposed City Manager compensation amendments, including payroll-related costs are summarized below.

Base Salary Adjustment: The estimated FY 2026-27 cost is $22,830, including related Medicare costs, to increase annual base salary from $370,000 to $415,000 effective December 28, 2026. The recurring full-year increase is $45,000 in salary and $652.50 in employer Medicare contributions, before future contractual adjustments or other applicable employer costs. The City Manager would waive the separate contractual annual salary adjustment otherwise scheduled for December 2026 only and all other future adjustments would be governed by the terms of the Amended Agreement unless otherwise approved by Council.  The waiver of the December 2026 adjustment would not affect the temporary CCPFA special compensation.

Temporary CCPFA Special Compensation: The estimated cost is $27,430, including related Medicare costs, for the eligible retroactive service period ending December 27, 2026.

The combined estimated FY 2026-27 compensation cost is $50,260. No additional employer Social Security contribution is anticipated for the remainder of calendar year 2026 because the applicable annual wage limit has already been met. Employer Social Security contributions would resume in January 2027 and reset each subsequent January, including January 2028, subject to the applicable annual wage limit. Because both salary levels exceed that limit, no incremental full-year Social Security cost is anticipated from the salary increase. Employer Medicare contributions would continue without a wage cap.

Residency Incentive: The proposed changes would increase the maximum potential General Fund secured loan commitment by $700,000, from $2.8 million to $3.5 million, at a fixed annual interest rate of one-half percentage point greater than the effective yield on investments in the State of California Local Agency Investment Fund for the month immediately preceding execution of the loan agreement and fixed for the term of the loan. Actual fiscal effects would depend on the amount financed, repayment schedule, and the City’s cost of funds.

Any necessary compensation appropriations, loan funding authorizations, and budget adjustments will be processed through the City’s established budget procedures.

ATTACHMENTS

1.                     2026-11-04_ATT_Amended and Restated City Manager Executive Employment Agreement.

2.                     2026-11-04_ATT_Resolution Adopting the Executive Management Classification and Salary Plan Relating to the City Manager Salary Adjustment effective December 28, 2026.

recommended action

MOTION(S)

That the City Council:

1.                     Approve the proposed Amended and Restated City Manager Executive Employment Agreement;

2.                     Adopt the resolution approving the Executive Management Classification and Salary Plan relating to the City Manager salary adjustment effective December 28, 2026;

3.                     Authorize the Mayor to execute the Amended and Restated City Manager Executive Employment Agreement on behalf of the City, subject to approval as to form by the City Attorney; and

4.                     Authorize the City Attorney, Chief Finance Officer and Chief Human Resources Officer to take the administrative actions necessary to implement the City Council’s direction, subject to applicable law and final approved documents.