That the City Council:
A. Approve and authorize execution of an employment agreement for the office of City Manager with Mr. Jim Sadro, which will remain in effect unless amended or terminated by mutual agreement of both parties; and

B. APPROVE AND ADOPT RESOLUTION NO. ______ ENTITLED:  A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA HABRA, CALIFORNIA, AMENDING RESOLUTION NO. 6006 PERTAINING TO A COMPENSATION PLAN FOR EXECUTIVE MANAGEMENT EMPLOYEES

Mr. Sadro has been employed by the City since 2004, having held the positions of Finance Director, Director of Finance and Administrative Services, Assistant City Manager and, most recently, the position of City Manager since 2014. The City Council has met in closed session to consider changes to Mr. Sadro’s current employment agreement and indicated their desire to continue the City’s employment of Mr. Sadro as its City Manager and met with the City Attorney in Closed Session to discuss the terms of the City Manager’s new contract, which replaces the previous agreement entered on July 1, 2020. As directed, the City Attorney presented the City Council’s terms and conditions for this new agreement to Mr. Sadro, and he accepted. 

The proposed at-will agreement will provide an annual salary of $250,000, effective upon City Council approval. The agreement also provides for an increase in the City-paid 457 deferred contribution from three percent to five percent and an increase in the City-paid Retiree Health Savings plan from one percent to three percent of the annual salary.

If approved by City Council, the proposed employment agreement will increase the City’s annual cost by $36,059 in salary and fringe benefits. This increase in cost can be funded within the Fiscal Year 2021-2022 adopted budget.