HomeMy WebLinkAbout2004-04-12 City Council (9)City of Palo Alto
City Manager’s Report
TO:HONORABLE CITY COUNCIL
FROM:
DATE:
SUBJECT:
CITY MANAGER DEPARTMENT: HUMAN RESOURCES
APRIL 12, 2004 CMR: 207:04
APPROVAL OF PAYMENT OF CERTAIN MORTGAGE EXPENSES
FOR LIBRARY DIRECTOR
RECOMMENDATION
Staff recommends that the City Council approve the attached employment agreement
between the City of Palo Alto and Paula Simpson, Library Director.
BACKGROUND
Currently most department directors are covered by the City’s Merit System Rules and
Regulations and have been hired without employment agreements. The Administrative
Services Director is the exception to this practice due to the housing loan the City authorized
in May 2002. A condition for the loan was that Mr. Yeats become an "at will" employee.
Ms. Simpson, the newly hired Library Director was also hired via an employment agreement
as an "at will" employee, and therefore exempt from portions of the Merit Rules. The City
Manager may terminate the employment of Ms. Simpson without cause.
DISCUSSION
The City recruited Paula Simpson from Monterey, California where she served as Library
Director for 14 years. Housing assistance for her relocation to Palo Alto is available as part
of the City’s Management Compensation Program. The Compensation Plan requires the City
Council authorize certain relocation expenses, including "points" on her home mortgage.
The cost of housing in Santa Clara County is significantly higher than in Monterey County.
While the City Manager did not offer Ms. Simpson the option of a City loan to enable her to
purchase her home, she did need assistance in lowering her monthly payments so she could
afford to payher mortgage given the salary she will earn as the Library Director. The City
Manager is recommending paying the two "points" on her loan, reducing the interest rate by
0.9%. The two points make a critical difference in Ms. Simpson being able to afford the
mortgage on a home in Palo Alto.
CMR: 207:04 Page lof2
RESOURCE IMPACT
The cost of the recommendation is $16,250. This is a one-time expense and is included in
the 2003-04 Human Resources adjusted budget.
POLICY IMPLICATIONS
This request does not represent any change to existing City policy.
ENVIRONMENTAL REVIEW
This is not a project under the California Environmental Quality Act (CEQA).
DEPARTMENT HEAD:
LESLIE LOOMIS
Director of Human Resources
CITY MANAGER APPROVAL: EMI~I~ R~~~ ONO~~
Assistant City Manager
CMR: 207:04 Page 2of 2