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Council approves 3% salary adjustment for city manager, directs subcommittee to finish performance-review process

City Council / Authorities concurrent meeting (City of Santa Clara) · January 28, 2026
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Summary

The council approved a roughly 3% retroactive salary adjustment for the city manager for the 2024-25 rating period, with a retroactive payment; council also directed a subcommittee to complete a more formal performance-evaluation process for the next rating period.

The City Council approved an amendment to the city manager's employment agreement on Tuesday, adjusting the city manager's salary by approximately 3% retroactive to May 1, 2025, and adopting a resolution updating the unclassified salary plan.

The Vice Mayor read the amendment into the record: a 3% salary adjustment effective 05/11/2025 (retroactive to 05/01/2025) producing a new annual salary of approximately $430,767.36 and a corresponding retroactive payment of $8,686.10. The amendment also updates the performance-appraisal process words in the employment agreement.

Council members discussed process concerns: several members said the city needs a clear, recurring performance-review process for council appointees and asked a council subcommittee to work with staff and legal counsel to complete a 360-review option and set performance goals for the 2025-26 review period. The council made clear the 3% adjustment applies to the 2024-25 period (to catch up a delayed review) and that staff will return shortly after May to handle the 2025-26 evaluation on schedule.

A motion to approve the amendment (and related salary-plan updates) passed unanimously, 6-0, with the mayor absent. Council members asked staff to formalize an annual process so future appointee evaluations occur in a timely way.

What happens next: HR and the appointed subcommittee will coordinate with a consultant (previously used by council) to run an updated appraisal process (including potential 360-elements) and present a documented, recurring schedule to the council.