REPORT TO COUNCIL
SUBJECT
Title
Action on Council Policy Establishing an Annual Performance Review Process for Council Appointees
Report
BACKGROUND
Currently, there is no established process for City Council to evaluate and assess the performance of Council appointees, including employees in the classifications of City Manager and City Attorney. The City Council expressed interest in adopting a policy to achieve predictability, transparency, and consistency in the performance evaluation and assessment of Council appointees.
On or about April 13, 2026, the Governance and Ethics Committee considered and reviewed a draft Council policy for the performance evaluation process for Council appointees, including employees in the City Manager and City Attorney classifications, and made recommendations which have been incorporated into the draft Council policy.
DISCUSSION
The following is a summary of the notable provisions of the new Council policy, and a complete copy of the new Council policy is attached.
Annual Rating Period: The rating period for Council appointees shall be January 1st through December 31st of each year. If a Council appointee is hired before July 1st, the duration of the first rating period shall be set forth in the negotiated employment agreement. If a Council appointee is hired with a start date after July 1st, the rating period shall be from the employee’s start date through December 31st of the following year.
Facilitator: The Human Resources Director shall meet with Council in closed session, if necessary, to discuss the appraisal process and scope of work for the appraisal facilitator. The Human Resources Director shall engage the services of a performance appraisal facilitator selected by City Council to assist with the performance evaluation and assessment of the Council appointees. The performance appraisal process may include, but not be limited to, meetings and interviews between the City Council , and any other identified staff members to gather information necessary for the performance appraisal. City staff will work with the Finance Department to ensure that sufficient budget is available to fund the type of appraisal process the Council will implement.
Timeline: The new Council policy provides a timeline for the evaluation and assessment process, including but not limited to, the months when certain actions are expected to be completed, such as the selected facilitator meeting with City Council and staff (November and December); meeting with the City Council and the Council appointee in closed session (January); the City Council, in closed session, may discuss and determine the form and substance of the performance appraisal, method for preparation of a written appraisal (if necessary), goal-setting priorities for the employee, and may select a subcommittee to meet with the Council appointee to negotiate any changes to compensation, benefits, or any other requested modifications to the Council appointee’s employment agreement (no later than the second meeting in February); the subcommittee meeting with the employee for the purposes of negotiating compensation, benefits, and any other requested modifications to the employee’s employment agreement (March and April); and the subcommittee meeting with the full City Council in closed session to present the results of negotiations with the Council appointee and provide a recommendation for further discussion and action in open session (no later than the second meeting in May).
It should be noted that the new Council policy also calls for a salary increase of approximately 2% or the applicable CPI (Consumer Price Index for Urban Consumers (CPI-U) for San Francisco-Oakland-Hayward), whichever is lesser, in the event the City Council does not complete the outlined process on or before May 31st, with an effective date to the first pay period after July 1st. This term is currently in the employment agreement of the City Manager and City Attorney with retroactivity to their respective anniversary date.
In the event City Council seeks to take action for providing any additional adjustments after May 31st, the Human Resources Director shall bring such modifications or adjustments to open session for discussion and approval.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(a) as it has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.
FISCAL IMPACT
The performance appraisal process would use an outside facilitator at an estimated annual cost of $50,000 - $75,000. If this policy is approved, a budget amendment will be brought forward for FY 2026/27, and this cost will be factored into future budgets.
COORDINATION
This report was coordinated with the City Manager’s Office, Human Resources Department and the City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Committee 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 or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
Adopt a Resolution approving new Council policy 058 establishing a performance evaluation process for Council appointees.
Staff
Reviewed by: Marco Mercado, Acting Director of Human Resources
Approved by: Jovan Grogan, City Manager
ATTACHMENTS
1. Resolution Approving Council Policy 058 (Council Appointee Performance Appraisal Process)
2. Council Policy 058 - Council Appointee Performance Appraisal Process