REPORT TO COUNCIL
SUBJECT
Title
Action on Approval of Resolution Approving and Adopting the Updated Unclassified Salary Plan for Various Positions including the Updated Salaries of the City Manager and the City Attorney pursuant to their respective Employment Agreements, and Adopt a Resolution Approving and Adopting the Unclassified Salary Plan for Various Positions including the classifications of City Manager and City Attorney
Report
BACKGROUND
Approve the Updated Salary Plan that includes the Updated Salary of the City Manager
The City Manager, Jōvan D. Grogan, has been employed by the City of Santa Clara since on or about May 1, 2023. The initial salary for this position (Section 3.1 of the Employment Agreement) was approximately $405,056 per year. On or about December 12, 2023, pursuant to the Employment Agreement, the City Council approved an adjustment to his annual base salary by approximately 2.0% effective December 24, 2023 (the first pay period of calendar year 2024), resulting in a new salary of approximately $413,157. On or about January 9, 2024, the City Council approved a merit-based salary adjustment of approximately 1.23%, also effective December 24, 2023, resulting in a new salary of approximately $418,220. On or about January 27, 2026, the City Council approved Amendment No. 1 to the City Manager’s Employment Agreement which included a 3.0% salary adjustment, resulting in a new salary of approximately $430,767.36, effective May 11, 2025, as well as an automatic salary increase of approximately 2.0% (or applicable CPI, whichever is less) effective the first pay period after May 1st if the performance appraisal process for the City Manager is not completed on or before May 31st. Based on prior City Council direction, the next performance appraisal process for the City Manager will encompass the full 2026 calendar year, and the next appraisal process is scheduled to begin at the end of the 2026 calendar year with a prescribed timeline for the process to be completed by May 31st of 2027. Accordingly, pursuant to Amendment No. 1 and since a performance appraisal was not completed on or before May 31, 2026, the City Manager’s annual base salary will be increased by approximately 2.0% to $439,382.71 effective May 10, 2026 (the first pay period after May 1, 2026). Following the next performance appraisal, the City Council will determine if any additional compensation adjustment is to be provided. It should be noted that the consumer price index (CPI) for this region increased approximately 3.8% for the 12 months ending in April 2026.
Approve the Updated Salary Plan that includes the Updated Salary of the City Attorney
The City Attorney, Glen R. Googins, has been employed by the City of Santa Clara since March 1, 2023. The initial salary for this position (Section 3.1 of the Employment Agreement) was $345,000 per year. On December 3, 2024, the City Council approved Amendment No. 1 to the Employment Agreement that adjusted his annual base salary by 3.25% retractive to March 1, 2024, resulting in a new salary of $356,212.50. The cost-of-living adjustment was for a 12-month rating period. On or about August 26, 2025, the City Council approved Amendment No. 2 to the City Attorney’s Employment Agreement which included a 4.0% salary adjustment, resulting in a new salary of approximately $370,461.12, effective March 1, 2025, as well as an automatic salary increase of approximately 2.0% (or applicable CPI, whichever is less) effective March 1st if the performance appraisal process for the City Attorney is not completed on or before May 31st. Based on prior City Council direction, the next performance appraisal process for the City Attorney will encompass the full 2026 calendar year, and the next appraisal process is scheduled to begin at the end of the 2026 calendar year with a prescribed timeline for the process to be completed by May 31st of 2027. Accordingly, pursuant to Amendment No. 2 and since a performance appraisal was not completed on or before May 31, 2026, the City Attorney’s annual base salary will be increased by approximately 2.0% to $377,870.34 effective March 1, 2026. Following the next performance appraisal, the City Council will determine if any additional compensation adjustment is to be provided. It should be noted that the consumer price index (CPI) for this region increased approximately 3.8% for the 12 months ending in April 2026. Following the performance appraisal, the City Council will determine if any additional compensation adjustment is to be provided.
Government Code section 20636(b)(1) and California Code of Regulations section 570.5 require that public salary schedules include specific information and be approved by the governing body whenever they are updated or revised.
Approve the Modifications to Unclassified Class Specifications
The City is proposing to merge and create general class specifications for the Assistant Director (Job Code 133) and Division Manager (Job Code 136) classifications. Individual classifications merged into the general classification will be deleted from the salary plan.
These modifications were approved by Unit 9 prior to bringing this request forward to Council.
Approve Revised Salary Ranges to Various Unclassified Positions
Due to Memorandum of Understanding (MOU) agreement with the Unclassified Miscellaneous Management (Unit 9) and Unclassified Electric Utility Management Employees Association (Unit 9E), the City is bringing forward a request to adjust the salary range of several classifications that are impacted by the MOU Compaction provision. Under this provision, supervisory-subordinate classifications must maintain a 5.0% salary differential.
Sections 4 and 6 of the Personnel and Salary Resolution require City Council approval of new or revised classifications. The proposed Council action satisfies these applicable requirements.
Adoption of a Resolution Approving and Adopting the Updated Unclassified Salary Plan
Section 9 of the Personnel and Salary Resolution requires City Council approval of compensation plans for unclassified positions. California Code Regulations Section 570.5 requires the adoption of updated publicly available salary schedules by the governing body. The attached Resolution approves the updated unclassified salary plan.
The City of Santa Clara contracts with the California Public Employees’ Retirement System (CalPERS) to provide retirement benefits for employees in both classified and unclassified positions. When the City makes modifications to the salary schedules for its unclassified positions, the City Council must approve and adopt the publicly available salary schedules to comply with California Code of Regulations (CCR) section 570. 5. If the City Council does not approve these resolutions, the City will be non-compliant with CalPERS record keeping and reporting requirements. The proposed Council action satisfies these applicable requirements.
DISCUSSION
Approve the Updated Salary Plan that includes the Updated Salary of the City Manager
Based upon Amendment No. 1 to the Employment Agreement of the City Manager which was approved by City Council on or about January 27, 2026, which provides for the following changes to the City Manager’s compensation:
(1) a statement of the new salary level of approximately $439,382.71 (reflecting the salary increase of approximately 2.0%), retroactive to and effective May 10, 2026 (the start of the first pay period after May 1, 2026);
Approve the Updated Salary Plan that includes the Updated Salary of the City Attorney
Based upon Amendment No. 2 to the Employment Agreement of the City Attorney which was approved by City Council on or about August 26, 2025, which provides for the following changes to the City Attorney compensation:
(1) a statement of the new salary level of $377,870.34 (reflecting the salary increase of approximately 2.0%), retroactive to and effective March 1, 2026;
Merge and Create an Assistant Director (Job Code 133) Classification
In an effort to streamline recruitment efforts and allow departments without a current Assistant Director classification to add this position based on operational needs, the Human Resources Department updated the Assistant Director classification to be a general classification that can be used across multiple departments. The following classifications will be merged to the general classification:
• Assistant Director of Finance (Job Code 022)
• Assistant Director of Human Resources (Job Code 018)
• Assistant Director of Water & Sewer Utilities (Job Code 014)
The merged classifications listed above will be deleted from the Unclassified Salary Plan and incumbents in these positions will be moved to the general Assistant Director (Job Code 133) classification. The salary range for the Assistant Director (Job Code 133) classification aligns with the minimum and maximum salary ranges of the merged classifications and will not result in changes to incumbent salaries.
Assistant Director (Job Code 133)- with an annual salary range of $214,395.84 - $280,323.72.
Under administrative direction, incumbents provide executive leadership and administrative support across operational, financial, regulatory, and strategic functions within a City department. This position supports executive management in the development and implementation of departmental policies and procedures; personnel management; budget administration; and program development, and evaluation. Incumbents assist in planning, organizing, coordinating, and evaluating departmental programs, services, and internal operations. The Assistant Director may act on behalf of the Director in their absence. Performs related duties as assigned.
Merge and Create a Division Manager (Job Code 136) Classification
In an effort to streamline recruitment efforts and allow departments without a current Division Manager classification to add this position based on operational needs, the Human Resources Department updated the Division Manager classification to be a general classification that can be used across multiple departments.
The following classifications will be merged to the general classification:
• Housing and Community Services Division Manager (Job Code 075)
• Accounting Division Manager (Job Code 109)
• Budget & Treasury Division Manager (Job Code 113)
• Human Resources Division Manager (Job Code 139)
• Municipal Services Division Manager (Job Code 110)
• Audit Manager (Job Code 201)
• Purchasing Division Manager (Job Code 147)
• Risk Manager (Job Code 700)
The merged classifications will be deleted from the Unclassified Salary Plan and incumbents in these positions will be moved to the general Division Manager (Job Code 136) classification. The salary range for the Division Manager (Job Code 136) classification aligns with the minimum and maximum salary ranges of the merged classifications and will not result in changes to incumbent salaries.
Division Manager (Job Code 136) - with an annual salary range of $179,176.44 - $244,236.72.
Under general direction, incumbents are responsible for planning, organizing, directing and coordinating operational and administrative service functions of an entire division or major operational function within a City department. Responsibilities include assisting executive management in the development and implementation of department policies and procedures, personnel management, budget administration, and program development and evaluation. Performs related duties as assigned.
Approve Revised Salary Ranges to Various Unclassified Positions
The Unclassified Miscellaneous Management (Unit 9) and Unclassified Electric Utility Management Employees Association (Unit 9E) MOUs have a compaction provision for
supervisory-subordinate classifications that must maintain an approximate 5.0% salary differential. The following classifications are being adjusted to maintain at least an approximate 5.0% salary differential with their subordinate classifications. Individual employee salaries will only be adjusted if they are directly impacted by having a 5% salary differential from direct reports.
The impacted classifications:
• Deputy Director (Job Code 176) - will receive an approximate 5% salary adjustment with a new annual salary of $188,559.48 - $256,464.89,
• Electric Division Manager (Job Code 104) - will receive an approximate 3.4% salary adjustment with a new annual salary of $224,921.16 - $300,943.47.
• Electric Division Manager - Operations (Job Code 104P) - will receive an approximate 3.4% salary adjustment with a new annual salary of $224,921.16 - $300,943.47.
• Electric Division Manager - Generation (Job Code 104R) - will receive an approximate 3.4% salary adjustment with a new annual salary of $224,921.16 - $300,943.47.
• Electric Division Manager - Engineering (Job Code 104Q) - will receive an approximate 3.4% salary adjustment with a new annual salary of $224,921.16 - $300,943.47.
• Electric Division Manager - Substations (Job Code 104M) - will receive an approximate 3.4% salary adjustment with a new annual salary of $224,921.16 - $300,943.47.
• Electric Division Manager - Transmission/Distribution (Job Code 104S) - will receive an approximate 3.4% salary adjustment with a new annual salary of $224,921.16 - $300,943.47.
• Electric Division Manager - Market Analysis and Pricing (Job Code 104F) - will receive an approximate 3.4% salary adjustment with a new annual salary of $224,921.16 - $300,943.47.
• Principal Electric Utility Engineer (Job Code 145) - will receive an approximate will receive an approximate 3.4% salary adjustment with a new annual salary of $214,236.60 - $286,612.83.
Adoption of a Resolution Approving and Adopting the Updated Unclassified Salary Plan
The Unclassified Salary Plan has been updated to reflect the modifications to classification titles as set forth in this report. The salary plans included with this item includes the new salaries for the positions of City Manager and City Attorney pursuant to their respective Employment Agreement amendments. The Unclassified Salary Plan is also being updated to add the general Assistant Director and Division Manager classifications, delete various unclassified positions, and adjust the salary for various unclassified positions per the relevant MOU compaction provision.
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(b)(5) 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 City Manager’s current base salary is $430,767.36. The updated base salary of approximately $439,382.71, pursuant to Amendment No. 1 of the Employment Agreement of the City Manager, will result in an annual salary increase of approximately $8,615.35. The corresponding lump sum retroactive payment for the time period of May 10, 2026 (the start of the first pay period after May 1, 2026) up to June 20, 2026 (the end of the last pay period before June 23, 2026), for wages, is approximately $994.08. Estimated total annual compensation is approximately $627,000. This includes base salary, benefits, social security, and all pension costs (normal and unfunded liability). Department savings are anticipated to be available to absorb the additional cost impact in FY 2025/26 and FY 2026/27. Adjustments to factor in the higher base salary costs will be included in future budget cycles.
The City Attorney’s current base salary is $370,461.12. The updated base salary of $377,870.34, pursuant to Amendment No. 2 of the Employment Agreement of the City Attorney, will result in an annual increase of approximately $7,409.22. The corresponding lump sum retroactive payment for the time period of March 1, 2026 up to June 20, 2026 (the end of the last pay period before June 23, 2026), for wages, is approximately $2,279.76. Estimated total annual compensation is approximately $567,000. This includes base salary, benefits, social security, and all pension costs (normal and unfunded liability). Department savings are anticipated to be available to absorb the additional cost impact in FY 2025/26 and FY 2026/27. Adjustments to factor in the higher base salary costs will be included in future budget cycles.
There are no additional costs associated with the proposed modifications to merge the Assistant Director and Division Manager class specifications and updated salary plans. If departments request to add a position, it will be brought forward in during the budget cycle.
COORDINATION
This report has been coordinated with the Finance Department and City Attorney’s Office.
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, or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Approve modifications to the salary for the City Manager, including (A) a salary adjustment for the City Manager of approximately 2.0% retroactive to and effective May 10, 2026, effective May 10, 2026, resulting in a new annual salary of approximately $439,382.71, with a corresponding retroactive payment of $994.08, and (B) adopt a Resolution updating the Unclassified Salary Plans (effective May 10, 2026) approved June 23, 2026;
2. Approve modifications to the salary for the City Attorney, including (A) a salary adjustment for the City Attorney of approximately 2.0% retroactive to and effective March 1, 2026, resulting in a new annual salary of approximately $377,870.34, with a corresponding retroactive payment of $2,279.76, and (B) adopt a Resolution updating the Unclassified Salary Plans (effective March 1, 2026) approved June 23, 2026;
3. Approve various modifications to the Unclassified Classification Plan, as follows, as detailed in the corresponding Class Specification attachments:
a. Approve the Creation of the Assistant Director (Job Code 133) Class Specification, and
b. Approve the Creation of the Division Manager (Job Code 136) Class Specification.
4. Adopt a Resolution to approve the revised salary plans for unclassified positions to satisfy the requirements of California Code of Regulations Section 570.5, effective July 5, 2026.
Staff
Reviewed by: Marco Mercado, Acting Director of Human Resources
Approved by: Aracely Azevedo, Assistant City Manager
ATTACHMENTS
1. City Manager Employment Agreement
2. January 9, 2024, Report to Council
3. City Manager Employment Agreement, Amendment No. 1
4. City Attorney Employment Agreement
5. City Attorney Employment Agreement, Amendment No. 1
6. City Attorney Employment Agreement, Amendment No. 2
7. Class Specification (clean), Assistant Director (Job Code 133)
8. Class Specification (clean), Division Manager (Job Code 136)
9. Unclassified Salary Plans Eff 03-01-2026 (for Council 06-23-2026)
10. Unclassified Salary Plans Eff 05-10-2026 (for Council 06-23-2026)
11. Unclassified Salary Plan Eff 07-05-2026 (for Council 06-23-2026)
12. Resolution for Updated Unclassified Salary Plan