Council approves third amendment to city manager’s contract, granting 5% raise

The Newark City Council approved the third amendment to the City Manager employment agreement, increasing the City Manager’s compensation and making conforming changes to the salary schedule and the city’s compensation and benefit plan for management, supervisory and professional employees.

City Attorney Chris Cocatello summarized the amendment and the legal requirement to report final actions that affect executive compensation. The staff report said City Manager David J. Banoon has served since December 2018 and that a recent salary survey of comparable jurisdictions showed the manager’s total compensation was about 4.5% below the peer average. The proposed amendment would provide a 5% salary increase, establishing an annual base salary of $350,895.96 effective Oct. 1, 2024, which the city attorney said would place the manager about 0.5% above the average total compensation and help address compaction with the next highest department head.

The amendment also included an adjustment to the city’s compensation and benefit plan (moving the city manager position to Range 30) and a conforming update to the salary schedule in accordance with California Code of Regulations, Title 2, Section 570.5, together with an amendment to the 2024–2026 biennial budget and CIP. Councilmembers praised the city manager’s performance on the record; after a motion and second the resolution passed unanimously.

Why it matters: The resolution changes the City Manager’s compensation and adjusts the salary schedule and budget authority accordingly. Staff noted the change follows a compensation survey and aims to place the City Manager’s pay in line with comparable jurisdictions.

Speakers on the record for this item included City Attorney Chris Cocatello and City Manager David J. Banoon.