Title
ADD-ON - Enter Into Employment Agreement with the City Manager (Ordinance S-52295) - Citywide
Description
Request to authorize the Mayor, on behalf of the City Council, to enter into an agreement with Ed Zuercher as City Manager effective November 17, 2025, with the following principal terms.
Report
Summary
The agreement with the City Manager shall commence on November 17, 2025 and shall continue for an indefinite term as provided in the City Charter.
The City Manager shall receive an annual salary of $415,542 paid bi-weekly, with annual increases equal to the total compensation percentage awarded by the City Council to employee bargaining groups, subject to City Council disapproval at the City Manager's annual performance review. The City Manager shall receive the same benefit and fringe benefit package as other City executives.
The City Council recognizes the importance of the City Manager's participation in professional and civic organizations in the performance of his duties and the City shall reimburse the City Manager for ordinary and usual educational and membership expenses incurred by the City Manager not to exceed $2,500 annually.
The City Manager, as a City employee, is entitled to full benefits of the City Retirement System as set forth in the City Charter, Chapter 24. Because the City Manager currently is a City of Phoenix Employees' Retirement System (COPERS) retiree, the City Manager’s current retirement benefit shall be suspended as of November 17, 2025 and the City Manager shall be restored to the status of an active Member in COPERS. In this regard, the City Manager shall accrue additional service credit and benefits in COPERS for his employment under this Agreement. Upon his termination in accordance with Section 3 of this Agreement, the City Manager’s COPERS’ benefit shall be recalculated to include his additional benefit accrual. The City Manager’s current benefit option and designated survivor(s) shall remain in effect for his original COPERS benefit. However, the City Manager shall be entitled to elect a benefit option and to designate a survivor, if applicable, in accordance with COPERS’ plan terms for the additional benefit he accrues during his employment under this Agreement.
The City Manager, as a qualifying City employee, is entitled to full benefits of the Medical Expense Reimbursement Plan (MERP). Because the City Manager currently is a covered retiree, the City Manager’s current MERP benefit shall be suspended as of November 17, 2025 and the City Manager shall be restored to the status of an active employee. Upon his termination in accordance with Section 3 of this Agreement, the City Manager’s MERP benefit shall be reinstated. The City Manager’s current benefit ($202 per month) and designated survivor(s) shall remain in effect for his original MERP benefit.
The City agrees to defend and indemnify the City Manager against any claim or demand for damages, including legal actions, arising out of or in connection with any alleged act or omission occurring within the course and scope of performance by the City Manager of the City Manager duties as such.
Department
Responsible Department
This item is submitted by the Law Department on behalf of the City Council.