CC 2023-12-23_12.a. Appointment of City Manager and Approval of Employment AgreementItem 12.a.
MEMORANDUM
TO: City Council
FROM: Isaac Rosen, City Attorney
SUBJECT: Consideration of Appointment of City Manager and Approval of
Employment Agreement
DATE: December 12, 2023
SUMMARY OF ACTION:
The City Council is being asked to consider approving the attached, negotiated
Employment Agreement with Matthew J. Downing to serve as Arroyo Grande’s City
Manager, following an oral report summarizing the salaries, salary sc hedules or
compensation paid in the form of fringe benefits consistent with the Brown Act.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
The negotiated City Manager contract sets an annual salary for the City Manager at
$235,900. The City Manager would receive approved Cost of Living Adjustments
(“COLA”) at the time of other unrepresented management employees and will be eligible
for benefits consistent with other City employees. Other provisions that impact financial
resources are set forth within the attached, negotiated Employment Agreement, including
annual and accrued leave, severance, and other benefits. The salary and benefits
described are within the FY 2023-24 City Manager division budget.
The City used Mosaic Public Partners to provide executive recruitment services totaling
$26,500. Significant City Council, City Attorney, and staff time was devoted to the
recruitment process.
RECOMMENDATION:
1) Approve the negotiated Employment Agreement with Matthew J. Downing , to serve
as Arroyo Grande’s City Manager, following the required oral report under the Brown Act
and subject to any minor, non-substantive changes necessary for finalization; and 2) Find
the action is not a project subject to the California Environmental Quality Act (“CEQA”)
because it has no potential to result in either a direct, or reasonably foreseeable indirect,
physical change in the environment. (State CEQA Guidelines, §§ 15060, subd. (c)(2)-
(3), 15378).
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Item 12.a.
City Council
Consideration of Appointment of City Manager and Approval of Employment
Agreement
December 12, 2023
Page 2
BACKGROUND:
The City completed a robust executive recruitment process for the vacant City Manager
position in consultation with Mosaic Public Partners (“Mosaic”). T he contract with Mosaic
was approved by the City Council in open session, and took effect on August 22, 2023.
During the time the City Manager position has been vacant, the City has been served by
Bill Robeson, as Interim City Manager.
City Council provided direction for Mosaic and the City Attorney to negotiate a conditional
offer of employment and the terms of an Employment Agreement with Matt hew J.
Downing, for the City Manager position. The attached Employment Agreement is to be
considered by the City Council in open session and approved by formal action, following
an oral report by the City Attorney pursuant to the Brown Act, Government Code section
54953. Specifically, there must be an oral report summarizing the recommendation on
the salaries, salary schedules, or compensation paid in the form of fringe benefits of a
local agency executive during the open meeting in which the final action is to be
considered.
ANALYSIS OF ISSUES:
The approval of the negotiated contract by the City Council will allow Matt hew Downing
to serve as Arroyo Grande’s City Manager, with a start date scheduled for January 8,
2024.
ALTERNATIVES:
The following alternatives are provided for the Council’s consideration:
1. Approve staff’s recommendation;
2. Amend the terms of the negotiated Employment Agreement with Matthew J.
Downing for the City Manager position;
3. Reject the proposed contract for Matthew J. Downing to serve in the City Manager
position; or
4. Provide other direction to staff.
ADVANTAGES:
The City of Arroyo Grande will have a permanent City Manager following a robust
executive management recruitment.
DISADVANTAGES:
No disadvantages have been identified.
ENVIRONMENTAL REVIEW:
Find the action is not a project subject to the California Environmental Quality Act
(“CEQA”) because it has no potential to result in either a direct, or reasonably foreseeable
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Item 12.a.
City Council
Consideration of Appointment of City Manager and Approval of Employment
Agreement
December 12, 2023
Page 3
indirect, physical change in the environment. (State CEQA Guidelines, §§ 15060, subd.
(c)(2)-(3), 15378).
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted at City Hall and on the City’s website in accordance with
Government Code Section 54954.2.
Attachments:
1. Proposed Employment Agreement
2. City Manager Job Description
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ATTACHMENT 1
EMPLOYMENT AGREEMENT
This City Manager Employment Agreement (“Agreement”) is between Arroyo Grande
(“City”) and NAME (“Employee”). It is effective as of DATE.
This Agreement is entered into on the basis of the following facts, among others:
A. The City has a vacancy in the position of City Manager;
B. The City, through its City Council (“Council”), desires to appoint Employee as
the City Manager of City, and Employee desires to accept this appointment; and
C. The City and Employee desire to establish specific terms and conditions relating
to compensation and benefits, performance evaluations, and related matters.
BASED UPON THE FOREGOING, THE CITY AND EMPLOYEE AGREE AS
FOLLOWS:
1. Employee Appointed. The City appoints and employs Employee as City
Manager, and Employee accepts the appointment and employment effective DATE.
2. Duties of Employee. Employee shall perform the duties established for
the City Manager by applicable State, local law, the City’s Municipal Code, the City Manager
job description as it may be periodically amended, a current copy of which is attached hereto as
Exhibit A, the directions of the Council, or as otherwise provided by law, ordinance, or
regulation.
(a) Full Energy and Skill. Employee shall faithfully, diligently, and to
the best of Employee's abilities, perform all duties that may be required under this Agreement.
Employee agrees that Employee has a duty of loyalty and a general fiduciary duty to the City.
Employee shall devote the whole of Employee's working time, skill, experience, knowledge,
ability, labor, energy, attention, and best effort exclusively to the City’s business and affairs.
(b) No Conflict. Employee shall not engage in any employment,
activity, consulting service, or other enterprise, for compensation or otherwise, which is actually
or potentially in conflict with, inimical to, or which interferes with the performance of
Employee’s duties.
(c) Outside Activities. Employee shall not spend more than 8 hours per
month in teaching, consulting, expert witness testimony, speaking, or other non-City connected
business for which compensation is paid without express prior consent of the Council. Employee
will take personal leave (i.e. annual leave or management leave) for all outside activities of this
nature.
3. Hours of Work. Employee is an exempt employee and is expected to
engage in those hours of work that are necessary to fulfill the obligations of the City Manager
position. Employee does not have set hours of work, as the City Manager is expected to be
available at all times during the City’s customary office hours. It is recognized that the City
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Manager must devote a great deal of time to the business of the City outside of the City’s
customary office hours, and to that end the City Manager’s schedule of work each day and week
shall vary in accordance with the work required to be performed and in accordance with any
specific direction provided by the Council.
4. Term. The initial term of this at-will Agreement shall be for three years
from the Effective Date through DATE (“Initial Term”), unless terminated earlier by either party
in accordance with the provisions set forth in paragraph 6. Unless either party provides notice of
non-renewal to the other party on or before one-hundred twenty (120) days prior to expiration of
the Initial Term as set forth in paragraph 6(d), the Agreement shall continue in effect until
terminated by either party in accordance with the provisions set forth in paragraph 6.
5. Compensation.
(a) Salary. Employee shall receive the base annual salary of Two
Hundred Thirty Five Thousand Nine Hundred Dollars ($235,900.00) payable on a pro-rata basis
in the same manner as all full time City employees, and subject to all applicable payroll taxes
and withholdings.
(b) Salary Adjustments. In connection with Employee’s annual
performance evaluations, the Council can decide, in its sole discretion, whether to award
Employee any increase in compensation. In addition, the Council has discretion to award
Employee increases in compensation at other times deemed appropriate by the Council.
Employee shall be eligible to receive the same percentage of cost of living adjustment (COLA)
salary increase, if any, awarded to Management Employees. Employee shall receive any such
COLA increase on the same date it is provided to Management Employees. Other than a COLA
increase, Employee is not eligible to automatically receive any general salary increases or equity
compensation adjustments provided to Management Employees or other City bargaining groups.
Other than as provided in this paragraph, Employee is not guaranteed any compensation
increase, even with a positive evaluation or even if other City employees are provided an
increase.
6. Termination and Severance Pay – At-Will Employment / No Property
Interest. Employee understands and agrees that Employee has no constitutionally-protected
property or other interest in Employee’s employment as City Manager. Employee understands
and agrees that Employee works at the will and pleasure of the Council, and that Employee may
be terminated, or asked to resign, at any time, with or without cause, by a majority vote of three
or more of its members.
(a) Termination without Cause
(1) Employee serves at the will and pleasure of the Council and
may be terminated with or without cause, with or without advance notice, at any time. Nothing in
this Agreement shall in any way affect the Council’s right to terminate the employment of
Employee with or without cause, with or without advance notice, at any time.
(2) In the event Employee is terminated by the City without
cause during the term of this Agreement, at which time Employee is willing and able to perform
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Employee’s duties under the Agreement, the City shall provide Employee with: (1) six (6)
months' salary; and (2) continuation of all existing health benefits currently offered to Employee,
for the lesser of six (6) months, until Employee finds other employment, or the remaining
months in the term of the Agreement, whichever occurs first. (The salary and benefits shall be
referred to collectively as “Severance Pay.”) In no event shall the amount of Severance Pay
exceed the value of six (6) months’ salary plus benefits. The intention is for this section to be
interpreted and applied in a manner that is consistent with California Government Code sections
53260 and 53261. Employee’s eligibility for Severance Pay is expressly conditioned upon
Employee’s execution of (i) a waiver and release of any and all of Employee’s claims against
City and related parties; and (ii) a covenant not to sue, in a form prepared by the City. All normal
payroll taxes and withholdings as required by law shall be made with respect to any amounts
paid under this paragraph. Employee expressly agrees to provide notice to the City within two
(2) business days of accepting employment elsewhere, and the City’s obligation to pay for the
continuation of any health benefits to Employee shall terminate upon Employee’s acceptance of
such alternative employment.
(3) Notwithstanding any provisions in this Agreement to the
contrary, the City shall not terminate Employee without cause for a period of one hundred twenty
(120) calendar days immediately following a general election unless (1) the City has cause to
terminate under paragraph 6(b)(1) or (2) Employee is convicted for abuse of office or position as
defined in Government Code section 53243.4.
(b) Termination for Cause
(1) In the event that it is determined that the Employee has
been terminated for cause, the Employee shall not be entitled to any Severance Pay. Termination
shall be “for cause” if Employee: (a) willfully breaches this Agreement; (b) habitually neglects
their duties as required to be performed under this Agreement; (c) is convicted, or pleads guilty
or nolo contendere, to any felony or a misdemeanor involving dishonesty or moral turpitude; (d)
refuses or fails to act in accordance with any legal directive or order of the Council; or (e) acts in
bad faith and to the detriment of the City.
(2) In the event Employee and this Agreement are terminated
for cause, Employee’s sole remedy shall be a judicial action in declaratory relief to determine
whether there was substantial evidence of cause. If the court determines there was not substantial
evidence, Employee shall receive the severance pay provided in this Section, but no other
damages.
(c) Resignation
(1) Nothing in this Agreement shall prevent, limit or otherwise
interfere with the right of Employee to resign at any time from the City Manager position,
subject only to the provisions set forth in this Agreement.
(2) In the event Employee resigns from their position with the
City, then Employee shall provide the Council sixty (60) days’ advance notice, unless the Parties
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agree otherwise. In the event that Employee resigns, Employee shall not be entitled to any
Severance Pay, but shall be compensated for accrued wages under the same terms and conditions
generally applicable to City employees.
(d) Non-Renewal. In the event either party provides notice of non-
renewal in accordance with paragraph 4, Employee shall not be entitled to any Severance Pay,
but shall be compensated for accrued wages under the same terms and conditions generally
applicable to City employees.
7. Performance Evaluation. The Council will conduct regular periodic
performance reviews. On or about the end of the first six months of Employee’s employment
(based on Council’s availability), the Council shall conduct an evaluation of Employee’s
performance and provide guidance and direction regarding the Council’s goals and objectives
which Employee shall be tasked with implementing. Thereafter, in or about May of each year
(with the first annual review to be conducted in or about May 2025), the Council shall conduct
an evaluation of Employee’s performance and provide guidance and direction regarding the
City’s goals and objectives which Employee shall be tasked with implementing. The Council, at
more frequent intervals and at times selected by the Council, can also conduct both informal and
formal performance reviews and/or provide other input to Employee regarding Employee’s job
performance in a format chosen by the Council. The Council can also arrange for a 360 review,
in a format and at intervals selected by the Council, in order to obtain performance feedback
from City staff and the Employee’s direct reports.
8. Benefits.
(a) Health and Welfare Benefits. Employee will be eligible for all
regular health and welfare benefits provided by the City in accordance with the City as further
described in the City’s Personnel Policies and Procedures (“Personnel Policies”).
(b) CalPERS Retirement Benefits. Employee will participate in
CalPERS, with employee and employer contributions in compliance with applicable law, the
City’s contract with CalPERS, and the City’s Personnel Policies.
(c) Deferred Compensation. As part of Employee’s annual
compensation, City agrees to contribute to a Section 457 deferred compensation plan the amount
of Two Thousand, Two Hundred dollars ($2,200.00) annually, payments to be equally divided in
each pay period.
(d) Life Insurance. The City agrees to pay for a term life insurance
policy in the face amount of One Hundred and Fifty Thousand Dollars ($150,000.00) on
Employee’s life with a carrier selected by the City. Employee shall designate the beneficiaries of
the policy. Employee shall also be entitled to participate in any group life or disability insurance
programs provided by the City for management employees.
(e) Equipment and Allowance. The City agrees to provide Employee
with a portable computer for City business. The City will provide Employee with a monthly
cellular telephone allowance in accordance with City policy.
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(f) Automobile Allowance. The City shall provide Employee with an
automobile allowance of Five Hundred Dollars ($500.00) per month, added to Employee’s
wages on a monthly basis as taxable income. This allowance is intended to compensate
Employee for all automobile expenses and mileage incurred in connection with the performance
of City duties.
9. Leave and Other Benefits. In addition to the benefits specified in
paragraph 8, Employee shall receive the following benefits.
(a) Annual Leave; Holidays. Employee shall accrue annual leave in
accordance with the policy applicable to Management Employees. At the commencement of
employment, Employee is credited with 13 years of service credit and will earn 33 days (264
hours) per year (accrued pro rata on a per pay period basis). Subject to any policy change
applicable to Management Employees, once Employee completes two years of service with the
City, Employee will be credited with a total of fifteen (15) years of service and shall earn annual
leave at the rate of 34 days (272 hours) per year (on a pro rata basis each pay period). Upon the
Effective Date of this Agreement, Employee is provided a one-time grant of fifty-six (56) hours
of Annual Leave. Use and maximum accrual of Annual Leave are governed by the terms
applicable to City Management Employees. Employee is also eligible for paid holidays under the
same terms and conditions applicable to Management Employees.
(b) Management Leave. Employee will be provided with forty (40)
hours of management leave each calendar year. Hours do not accumulate from year to year. At
the beginning of each calendar year, Employee’s management leave bank will be replenished to
a total of forty (40) hours. At the commencement of their employment, Employee will be
provided with a pro rata amount of management leave to use during the remainder of 2024. Any
management leave remaining upon separation of employment will not be cashed out.
10. Payment of Expenses of Employment. The City shall pay the following
usual and customary employment expenses.
(a) The cost of any fidelity or other bonds required by law for the City.
(b) The cost to defend and indemnify Employee in accordance with the
California Government Claims Act (Government Code §810 et seq.).
(c) The City will provide a reasonable budget for dues for Employee's
full membership in professional organizations associated with the office of City Manager. The
City will allow Employee reasonable time away from the City to participate in the annual
conferences of these organizations.
(d) Reimbursement for expenses related to travel to and attendance at
conferences or other events (i.e. out-of-town meetings, professional seminars, etc.), reasonably
necessary for Employee’s professional development and the proper discharge of City Manager
duties, is governed by the City’s expense reimbursement policy.
(e) The City will not reimburse Employee for any expenses related to
membership in service clubs.
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11. Miscellaneous.
(a) Notices. Notices given under this Agreement shall be in writing and
shall be:
(i) served personally; or
(ii) delivered by first-class United States mail, certified, with
postage prepaid and a return receipt requested; or
(iii) Sent by Federal Express, or some equivalent private
overnight delivery service.
Notices shall be deemed received at the earlier of actual receipt or three (3) days
following deposit in the United States mail, postage prepaid. Notices shall be directed to the
addresses shown below, provided that a party may change such party's address for notice by
giving written notice to the other party in accordance with this subsection.
CITY:
City of Arroyo Grande
Attn: Mayor
300 E. Branch Street
Arroyo Grande, CA 93420
Phone: 805-473-5400
EMPLOYEE:
Name
Address last on file
(b) Compliance with Government Code §§53243, 53243.1, & 53243.2.
If Employee is convicted of a crime involving an abuse of her office or position, all of the
following shall apply:
(i) if Employee is provided with administrative leave pay
pending an investigation, Employee shall be required to fully reimburse the City for such
amounts paid;
(ii) if the City pays for the criminal legal defense of Employee
(which would be in its sole discretion, as it is not generally required to pay for a criminal
defense), Employee shall be required to fully reimburse the City such amounts paid; and
(iii) if this Agreement is terminated, any cash settlement related
to the termination that Employee may receive from the City shall be fully reimbursed to the City
or void if not yet paid to Employee.
For this subsection, “abuse of office or position” means either (1) an abuse of
public authority, including waste, fraud, and violation of the law under color of authority, or (2) a
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crime against public justice, including but not limited to a crime described in Title 7
(commencing with Section 92) of Part 1 of the Penal Code.
(c) Entire Agreement/Amendment. This Agreement constitutes the
entire understanding and agreement between the parties as to those matters contained in it, and
supersedes any and all prior or contemporaneous agreements, representations and understandings
of the parties. This Agreement may be amended at any time by mutual agreement of the parties,
but any such amendment must be in writing, dated, and signed by the parties and attached hereto.
(d) Attorney's Fees. If any legal action or proceeding is brought to
enforce or interpret this Agreement, each party shall bear their own attorney’s fees, including any
such fees and costs as may be incurred in enforcing any judgment or order entered in an y such
action.
Nothing in this subsection shall be read to prevent the parties from
agreeing to some alternative method of dispute resolution. If such a method is agreed to, the
parties shall bear their own attorney’s fees in pursuing such relief and resolution.
(e) Severability. In the event any portion of this Agreement is declared
void, such portion shall be severed from this Agreement and the remaining provisions shall
remain in effect, unless the result of such severance would be to substantially alter this
Agreement or the obligations of the parties, in which case this Agreement shall be immediately
terminated.
(f) Waiver. Any failure of a party to insist upon strict compliance with
any term, undertaking, or condition of this Agreement shall not be deemed to be a waiver of such
term, undertaking, or condition. To be effective, a waiver must be in writing, signed and dated
by the parties.
(g) Representation by Counsel. The parties acknowledge and agree that
they were, or had the opportunity to be, represented individually by legal counsel with respect to
the matters that are the subject of this Agreement and that they are fully advised with respect to
their respective rights and obligations resulting from signing this Agreement.
(h) Governing Law and Venue. This Agreement shall be governed by
and construed in accordance with the laws of the State of California. Employee and the City
agree that venue for any dispute shall be in San Luis Obispo County, California.
(i) Section Headings. The headings on each of the sections and
subsections of this Agreement are for the convenience of the parties only and do not limit or
expand the contents of any such section or subsection.
(j) No Assignment. Employee may not assign this Agreement in whole
or in part.
[SIGNATURES ON THE FOLLOWING PAGE]
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SIGNATURE PAGE TO CITY MANAGER EMPLOYMENT AGREEMENT
Dated: City of Arroyo Grande
Caren Ray Russom, Mayor
Dated: EMPLOYEE
Name
Approved as to Form:
Isaac Rosen, City Attorney
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Exhibit “A”
Job Description
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ATTACHMENT 2
CITY OF ARROYO GRANDE
CITY MANAGER
Class specifications are intended to present a descriptive list of the range of duties performed by employees in the class.
Specifications are not intended to reflect all duties performed within the job.
DEFINITION
To plan, direct, manage and oversee the activities and operations of the City including administration,
finance, community development, police, public works and parks and recreation programs; and to provide
highly responsible and complex administrative support to the City Council.
SUPERVISION RECEIVED AND EXERCISED
Receives policy direction from the City Council.
Exercises direct supervision over management, supervisory, professional, technical and clerical staff.
ESSENTIAL AND MARGINAL FUNCTION STATEMENTS – Essential responsibilities and duties may
include, but are not limited to, the following:
Essential Functions:
1. Assume full management responsibility for all City operations including administration, finance,
community development, police, public works and parks and recreation programs; recommend and
administer policies and procedures.
2. Direct the development and implementation of the City’s goals, objectives, policies and priorities.
3. Establish, within City policy, appropriate service and staffing levels; monitor and evaluate the
efficiency and effectiveness of service delivery methods and procedures; allocate resources
accordingly.
4. Plan, direct and coordinate, through management staff, the work plan for the City; assign projects
and programmatic areas of responsibility; review and evaluate work methods and procedures; meet
with management staff to identify and resolve problems.
5. Assess and monitor work load, administrative support systems and internal reporting relationsh ips;
identify opportunities for improvement.
6. Select, motivate and evaluate personnel; resolve personnel concerns and issues; maintain the
City’s labor relations program.
7. Oversee the development and administration of the City budget; approve the forecast of funds
needed for staffing, equipment, materials and supplies; approve expenditures and implement
budgetary adjustments as appropriate and necessary.
8. Explain, justify and defend City programs, policies and activities; negotiate and resolve sensitive
and controversial issues.
9. Represent the City to all departments and outside agencies; coordinate City activities with those of
other cities, counties and outside agencies and organizations.
10. Provide staff assistance to the City Council; prepare and present staff reports and other necessary
correspondence.
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CITY OF ARROYO GRANDE
City Manager (Continued)
Page 2
Essential Functions: (continued)
11. Provide staff support to assigned boards and commissions.
12. Attend and participate in professional group meetings; stay abreast of new trends and innovations
in the field of public administration and management.
13. Respond to media inquiries, City Council concerns, issues and community needs.
14. Respond to and resolve difficult and sensitive citizen inquiries and complaints.
15. Perform related duties and responsibilities as required.
QUALIFICATIONS
Knowledge of:
Operations, services and activities of a municipality.
Advanced principles and practices of public administration.
Principles and practices of program development and administration.
Principles and practices of municipal budget preparation and administration.
Principles and practices of personnel administration.
Principles of supervision, training and performance evaluation.
Principles of business letter writing and report preparation.
Rules and regulations governing public meetings.
Pertinent Federal, State and local laws, codes and regulations.
Ability to:
Plan, organize and direct the work of staff.
Select, supervise, train and evaluate staff.
Delegate authority and responsibility.
Direct the operations, services and activities of a municipality.
Identify and respond to community and City Council issues, concerns and needs.
Develop and administer, departmental goals, objectives and procedures.
Prepare clear and concise administrative and financial reports.
Prepare and administer budgets.
Analyze problems, identify alternative solutions, project consequences of proposed actions and
implement recommendations in support of goals.
Research, analyze and evaluate new service delivery methods and techniques.
Interpret and apply Federal, State and local policies, laws and regulations.
Communicate clearly and concisely, both orally and in writing.
Establish and maintain effective working relationships with those contacted in the course of work.
Maintain effective audio-visual discrimination and perception needed for making observations,
communicating with others, reading, writing and operating assigned equipment.
Maintain physical condition appropriate to the performance of assigned duties and responsibilities.
Experience and Training Guidelines
Any combination of experience and training that would likely provide the required knowledge and abilities
is qualifying. A typical way to obtain the knowledge and abilities would be:
Experience:
Seven years of increasingly responsible experience in municipal governments, including five years of
administrative and supervisory responsibility.
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CITY OF ARROYO GRANDE
City Manager (Continued)
Page 3
Training:
Equivalent to a Bachelors degree from an accredited college or university with major course work in public
administration, business administration or a related field. An advanced degree in public administration or
a closely related field is desirable.
License or Certificate:
Possession of, or ability to obtain, an appropriate, valid driver’s license.
WORKING CONDITIONS
Environmental Conditions:
Position requires prolonged sitting, standing, walking, office and field environment; travel from site to site;
extensive public contact.
Physical Conditions:
Essential functions may require maintaining physical condition necessary for walking, standing or sitting for
prolonged periods of time; repetitive movement and fine coordination using a computer keyboard, light lifting
and carrying up to twenty pounds; speaking and hearing to exchange information, near visual acuity to
prepare and review correspondence and a variety of other documents.
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