Council approves fifth amendment to city manager contract including COLA and merit increase

The Buellton City Council on Oct. 25 approved a fifth amendment to the city manager’s employment agreement that implements a 5% cost-of-living increase and a separate 3% merit increase, along with modest increases to the city manager’s medical expense reimbursement and automobile allowance.

City Attorney Greg Murphy summarized the requested changes after the council met in closed session for the city manager’s annual performance review. Murphy said the amendment also includes a contract provision that, in any year the council grants cost-of-living adjustments equal to the consumer price index, the city manager’s salary will automatically receive that CPI-based increase; any increase above CPI would require explicit council action, as state law requires.

Murphy told the council the proposed benefit increases (medical and automobile reimbursement) are not subject to CalPERS retirement contribution requirements, which reduces downstream pension liabilities. The combined package represents a monthly net increase to the city’s current ongoing obligations; Murphy said the net additional cost described in the staff report equates to about $600 per month (noted as a non‑PERS benefit increase).

Council voted unanimously to approve Resolution No. 25-29 approving the fifth amendment to the city manager employment agreement and updating the salary schedule.

Vote: Vice Mayor Lewis — aye; Mayor Silva — aye; Councilmember Hornick — aye; Councilmember Mead — aye; Councilmember Sanchez — aye.

Staff will implement the contract amendment and update payroll and the salary schedule, and return any required personnel notifications to the council per city practice.