The Sunnyvale City Council authorized an amendment to City Manager Tim Kirby's employment agreement Wednesday that increases his annual salary by 1 percent and allows a one-time cash-out of 100 hours of accrued paid time off. The amendment passed 5-0; Council members Cisneros and Lay were absent.

Human Resources Director Tina Murphy summarized the subcommittee recommendation that led to the proposal. The council's three-member salary subcommittee — Mayor Klein, Vice Mayor Sall and Council member Mellinger — recommended a 1 percent increase on top of the contractual 3 percent step that went into effect with the pay period including Sept. 1. Murphy said the PTO cash-out reduces the city's accrued liability because Sunnyvale books accrued time on its balance sheets; allowing a one-time payout at the current pay rate avoids a larger liability if the accrual were paid later at higher salary levels.

Vice Mayor Sall moved the amendment and Council member Mellinger seconded. Supporters said Kirby has advanced multiple operational and policy initiatives during his first year, and the subcommittee framed the change as a recognition of demonstrated performance while noting standard contract mechanics already provided for the 3 percent step. A member of the public spoke in opposition to the extra 1 percent, saying the 3 percent step should be sufficient.

The council approved the amendment without further changes. The salary adjustment and PTO cash-out are effective Oct. 26, 2025, per the approved amendment.