REPORT TO COUNCIL AND STADIUM AUTHORITY BOARD
SUBJECT
Title
Action to Unfreeze 1.0 Assistant City Manager position (Position 1685) in the City Manager’s Office, Approve Related City and Stadium Authority Budget Amendments, and Modify the Assistant City Manager Classification Specification (Job Code 016)
Report
COUNCIL PILLAR
Manage Strategically Our Workforce Capacity and Resources
Ensure Compliance with Measure J and Manage Levi’s Stadium
BACKGROUND
As part of the FY 2023/24 and FY 2024/25 Adopted Biennial Operating Budget, 1.0 Assistant City Manager position was frozen for two fiscal years. This position primarily assisted with oversight of the Santa Clara Stadium Authority and the Convention Center as well as other executive level oversight for the organization. Additionally, the prior incumbent position also supported the Related Santa Clara project, citywide economic development efforts and related policy work such as local minimum wage, worker retention, smoking/tobacco policies, cannabis regulations and food delivery fees.
The Human Resources Department also coordinated with the City Manager’s Office to modify the classification specification for Assistant City Manager (Job Code 016).
DISCUSSION
The Assistant City Manager position became vacant in October 2021 when the former incumbent retired. At that time, the City chose to not fill the position and it was subsequently “frozen” - meaning it was not eliminated as an authorized position, but City Council and Stadium Authority Board approval would be needed to fill the position. While the position remained vacant and frozen, there was and has continued to be a significant need for management oversight of stadium and convention center matters. As such, a portion of the position’s duties were shifted to other staff (e.g., policy work) and the City asked the prior incumbent to provide part-time support for some of their prior duties until a permanent solution was identified. This arrangement has been in place since November 2021.
At present, the prior incumbent assists with critical and high-profile projects including:
• Santa Clara Stadium Authority (Stadium Authority): provide strategic leadership supporting the City Manager on Stadium Authority oversight of Levi’s Stadium management/operations and the planning of future events including Super Bowl LX and World Cup 2026.
• Discover Santa Clara (DMO)/Tourism Improvement District: provide executive management support regarding the formation of the governance structure for the Destination Marketing Organization (DMO) and its role to promote Santa Clara and the Convention Center as a destination of choice for business and entertainment.
• Santa Clara Convention Center (Convention Center): provide oversight of the management contracts with OVG360 and Levy in the areas of budget, capital projects, and operation.
• Related Santa Clara Project: provide executive leadership related to all City efforts associated with the $7 billion public-private partnership development.
With the arrival of the new City Manager in May 2023, the City Manager has assessed the organizational structure of the City Manager’s Office and has determined that the Assistant City Manager position is a critical position and needed to plan, manage and oversee the below noted items.
• Stadium Authority related projects, including the Super Bowl LX and World Cup 2026. This body of work includes Stadium Authority coordination of efforts including capital improvement projects, event operation, permits, contract management, event planning and post-event assessments, Stadium Neighborhood Relations Committee, and other similar items as needed.
• Convention Center and DMO contract management, including budgets, payments, Santa Clara Tourism Improvement District assessments, capital improvements, KPIs, operating policies and general operation.
• Council/City Manager policies and initiatives including street banner policy, naming rights and sponsorship opportunities, policy on public service announcements on billboards and others.
The Assistant City Manager (Job Code 016) classification specification has also been reviewed and updated to add the Class Summary and Distinguishing Characteristics to more closely align with the current duties to be performed by incumbents in this position. The Minimum Qualifications were broadened in an effort to expand the candidate pool. The current requirements limit the applicant pool to candidates who only have public sector experience. The revisions include increasing the years of experience from five to six years and would allow for consideration of senior level management experience in a large or complex municipality, corporation, military, and/or non-profit organization.
The class specification revisions were reviewed with the impacted bargaining group. The salary range for the Assistant City Manager classification shall remain unchanged.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to section 15378(b)(5) of Title 14 of the California Code of Regulations in that it is a governmental organizational or administrative activity that will not result in direct or indirect changes in the environment.
FISCAL IMPACT
The total compensation cost for 1.0 Assistant City Manager position is approximately $497,000. The Assistant City Manager position will directly support the Stadium Authority, Convention Center and City initiatives and shall be funded 70% by the Stadium Authority, 20% by the Convention Center Enterprise Fund, and 10% by the General Fund.
This position will be 70% funded by the Stadium Authority (allocated to the General Fund Non-Departmental operating budget, which is anticipated to be fully reimbursed by the Stadium Authority, of which a corresponding increase to the Stadium Authority reimbursement revenue estimate is also recommended to offset the added cost). For the remaining position costs, 20% will be funded by the Convention Center Enterprise Fund, and 10% will be allocated to the General Fund City Manager’s Office operating budget, which is recommended to be funded by the General Fund’s Budget Balancing Reserve.
In the Convention Center Enterprise Fund, the adopted operating budget for FY 2023/24 and FY 2024/25 forecasts sufficient fund balance to absorb the additional costs associated with the remaining 20% funding need for the Assistant City Manager position. Subsequent years will be dependent upon maintaining or exceeding current performance levels at the Convention Center.
City Budget Amendments
FY 2023/24
|
|
Current |
Increase/ (Decrease) |
Revised |
|
General Fund |
|
|
|
|
Revenue |
|
|
|
|
Other Fees for Services |
$38,067,896 |
$347,900 |
$38,415,796 |
|
|
|
|
|
|
Expenditure |
|
|
|
|
City Manager’s Office - Salaries |
$2,053,037 |
$33,913 |
$2,086,950 |
|
City Manager’s Office - Retirement and Benefits |
$1,255,138 |
$15,787 |
$1,270,925 |
|
|
|
|
|
|
Non-Departmental - Salaries |
$5,925,840 |
$237,388 |
$6,163,228 |
|
Non-Departmental - Retirement and Benefits |
$3,939,852 |
$110,512 |
$4,050,364 |
|
|
|
|
|
|
Fund Balance |
|
|
|
|
Budget Balancing Reserve |
$481,489 |
($49,700) |
$431,789 |
|
|
|
|
|
|
Convention Center Enterprise Fund |
|
|
|
|
Expenditure |
|
|
|
|
Salaries |
$145,069 |
$67,825 |
$212,894 |
|
Retirement and Benefits |
$73,329 |
$31,575 |
$104,904 |
|
|
|
|
|
|
Fund Balance |
|
|
|
|
Unrestricted Ending Fund Balance |
$1,264,195 |
($99,400) |
$1,164,795 |
Stadium Authority Budget Amendments
FY 2023/24
|
|
Current |
Increase/ (Decrease) |
Revised |
|
Operating Fund |
|
|
|
|
Expenditure |
|
|
|
|
Stadium Authority General & Administrative |
$3,272,000 |
$347,900 |
$3,619,900 |
|
|
|
|
|
|
Fund Balance |
|
|
|
|
Unrestricted Ending Fund Balance |
$11,938,351 |
($347,900) |
$11,590,451 |
There is no fiscal impact to revising the class specification.
COORDINATION
This report has been coordinated with the City Attorney’s Office, Finance Department, and Human Resources Department.
This request was also coordinated with the Stadium Manager in accordance with Stadium Management Agreement Section 4.6, which outlines the Stadium Manager rights to review the Stadium Authority budget.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Approve Unfreezing 1.0 Assistant City Manager position (position 1685) in the City Manager’s Office.
2. Approve the following FY 2023/24 City Budget Amendments:
a. In the General Fund, increase the Other Fees for Services estimate by $347,900, increase the Non-Departmental Salaries and Benefits appropriations by $347,900, increase the City Manager’s Office Salaries and Benefits appropriations by $49,700, and reduce the Budget Balancing Reserve in the amount of $49,700 (five affirmative Council votes required to appropriate additional revenue and for the use of unused balances); and
b. In the Convention Center Enterprise Fund, increase the Salaries and Benefits appropriations by $99,400 and reduce the unrestricted ending fund balance by $99,400 (five affirmative Council votes required for the use of unused balances).
3. Approve a FY 2023/24 Stadium Authority Budget Amendment to increase the General & Administrative expense and decrease the Unrestricted Fund Balance in the amount of $347,900 to fund a portion of the Assistant City Manager position.
4. Approve the modified Assistant City Manager (Job Code 016) classification specification.
Staff
Reviewed by: Kenn Lee, Director of Finance/Treasurer
Approved by: Jōvan D. Grogan, City Manager/Executive Director
ATTACHMENTS
1. Class Specification (clean), Assistant City Manager (Job Code 016)
2. Class Specification (track changes version), Assistant City Manager (Job Code 016)