MEETING DATE:
NOVEMBER 10, 2026
SUBJECT:
Title
RESOLUTION NO. 2026-9686 - ADDENDUM #3 TO THE CITY MANAGER EMPLOYMENT AGREEMENT
Body
Recommendation
Recommendation
ADOPT a resolution to approve Addendum #3 to the City Manager employment agreement.
Body
Board or Commission Action
Not Applicable
Executive Summary
In September of 2023, the City Council approved an Employment Agreement for City Manager Michelle Bender. The Employment Agreement provided an initial term of four (4) years. On September 23, 2025, after the City Council satisfactorily reviewed the performance of the City Manager, it approved to extend the base term of the Employment Agreement to September 14, 2030, in addition to other agreed upon benefit enhancements. The City Council met again on October 13 and October 27, 2026 to discuss the City Manager performance, extension of the base term to September 14, 2032, and other benefit enhancements, as discussed below.
Discussion
After reviewing the City Manager’s performance, the City Council has found it to be acceptable. Considering this, the Council wishes to extend the Employment Agreement with Ms. Bender an additional two (2) years. The base term of the contract would now expire on September 14, 2032. The City Council has also approved a two percent (2%) merit adjustment to the base wage. Effective retroactively to September 14, 2026, this adjustment will result in an annual base salary of $336,001. Additionally, the Council has agreed to contribute an additional two percent (2%) of base salary to the City’s Retiree Health Savings (RHS) plan, bringing the total contribution to six percent (6%), and to grant five (5) additional days of vacation leave, bringing the total annual vacation leave bank to 25 days per year.
Fiscal Impact
The two percent (2%) adjustment to the City Manager’s annual base salary will have an annual fiscal impact of $6,588 in base wages. Increasing the City-paid contribution to the Retiree Health Savings (RHS) Plan from four percent (4%) to six percent (6%) of base salary will result in an additional annual cost of $6,720. These costs are in addition to the other City management-level benefits provided to executive City employees for Fiscal Year 2026-27, as approved in the FY 2026-27 budget.
Attachment(s)
Resolution
Addendum to the City Manager’s Employment Agreement
Prepared by: Janelle Laughlin, Administrative Services Director
Reviewed by: Helen Holmes Peak, City Attorney
Approved by: Michelle Bender, City Manager