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Council raises city manager salary, increases deferred compensation and PTO; amends remote‑work clause
Summary
Pacific Grove approved a first amendment to City Manager Matthew Mogensen’s employment agreement that raises base salary, boosts employer deferred compensation, increases paid time off, and removes a sentence requiring written council approval for flex work hours.
The Pacific Grove City Council unanimously adopted a resolution and ordinance on July 16 approving a first amendment to City Manager Matthew Mogensen’s employment agreement that raises his base salary and adjusts benefits.
Under the amendment, Mogensen’s annual base salary increases from $251,680 to $266,469 (an increase of $14,789). The city’s annual employer contribution to the manager’s deferred compensation plan increases from $2,600 to $3,900 (an additional $1,300). The first amendment also increases accrued paid time off (PTO) from 192 hours to 216 hours. The effective date for the compensation changes is July 6, 2025, to coincide with the pay period staff identified.
Council discussed one non‑monetary change in the contract language: removal of a sentence in the “hours of work” section that specified the employee “may with council's express written approval flex their working hours … and change their work location from City Hall to a permissible remote work location for a specified period of time.” Councilmembers agreed to delete that specific sentence; the agreement retains language that the manager is an exempt employee expected to work whatever hours are necessary and that regular office hours are 8 a.m. to 5 p.m. with flexibility based on work demand.
The city attorney explained the draft ordinance sets the salary in the classification schedule; the resolution authorizes the mayor to execute the amendment. The total one‑time fiscal impact including salary, deferred compensation and associated payroll costs was estimated in staff materials at about $17,996 for the remainder of the fiscal year, and the ongoing annual salary change is reflected in personnel budgets.
Councilmembers offered public praise for Mogensen’s first year; members who spoke cited his hiring of key staff, improved communication and responsiveness. There was no public comment on the item and the council approved the resolution and ordinance by voice vote.
