TO: CITY COUNCIL
FROM: ALISHA PATTERSON, CITY ATTORNEY
DATE: JULY 28, 2026
SUBJECT:
Title
FOURTH AMENDMENT TO CITY MANAGER EMPLOYMENT AGREEMENT WITH ORAL REPORT REQUIRED BY GOVERNMENT CODE § 54953(d)(3)(A) (FUNDING SOURCE: GENERAL FUND)
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SUMMARY
Adam Pirrie has served as the City Manager since February 23, 2021. His initial salary was $224,000 in 2021, and he has received the same cost of living adjustments as Department Head employees who are part of the Claremont Management Association (“CMA”). Represented City Department Head employees are eligible for annual merit increases up to six percent (6%) or eight percent (8%) depending on bargaining unit. Merit increases for the City Manager must be approved by the City Council.
Mr. Pirrie’s salary for 2026 is $277,548. This is significantly lower than the salaries of top executives in other local agencies that serve Claremont’s residents and generally lower than the salaries of City Managers of most other cities in the area.
The City Council has consistently recognized it is in the best interests of the City Council, City staff, the community, and other stakeholders to have stability in the City Manager position. It is also in the best interest of the City to begin to plan for Mr. Pirrie’s anticipated future retirement. To retain and attract highly-qualified candidates for the position of City Manager, the salary for the City Manager in Claremont must remain competitive with the salaries of top executives in other local agencies that serve Claremont’s residents and the salaries of City Managers of other cities in the area. To that end, the proposed Fourth Amendment to the City Manager’s Employment Agreement (“Fourth Amendment”) would:
(1) Increase the City Manager’s salary by eight percent (8%). This would be an increase from $277,548 to $299,752 per year (with associated benefits, an increase of $31,944 in 2026) instead of a one-time merit award (which Mr. Pirrie has received the past three years);
(2) Decouple Mr. Pirrie’s annual cost of living adjustments (“COLAs”) from the COLAs Department Head employees who are part of the CMA receive and, instead, provide annual COLAs based on the consumer price index (“CPI”);
(3) Extend the Term of the City Manager Employment Agreement from February 23, 2028 to June 30, 2029; and
(4) Allow Mr. Pirrie to continue his employment for a thirty-day (30) day period after the Term ends or after Mr. Pirrie retires or resigns to allow Mr. Pirrie to assist in transitioning his responsibilities to a new or interim City Manager.
A draft of the proposed Fourth Amendment is attached for the City Council’s consideration (Attachment).
RECOMMENDATION
Recommended Action
Staff recommends the City Council approve and authorize the Mayor to execute the attached Fourth Amendment to the City Manager Employment Agreement.
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ALTERNATIVES TO RECOMMENDATION
In addition to the recommendation, there are the following alternatives:
A. Do not approve the attached Fourth Amendment to City Manager Employment Agreement.
B. Direct the City Attorney to make changes to the attached Fourth Amendment.
FINANCIAL REVIEW
For 2026, the increased cost of an eight percent (8%) salary increase will not exceed $31,944 including associated benefits. The proposed increase in salary is reportable as compensation for the purpose of calculating retirement benefits under the City’s plan with the California Public Employees’ Retirement System (CalPERS).
The costs to research this issue, prepare documentation and complete this report are estimated to be $1,500. These costs are in City Attorney and staff time and are included in the operating budget of the Administrative Services Department.
ANALYSIS
Background
In October of 2020, the City Council appointed longtime Finance Director, Adam Pirrie to the position of Acting City Manager. On February 23, 2021, the City Council appointed Mr. Pirrie to the position of permanent City Manager. Since that time, the terms of Mr. Pirrie’s employment have been set forth in the City Manager Employment Agreement (“Employment Agreement”) approved by the City Council on February 23, 2021. The Employment Agreement outlines the City Manager’s salary and benefits. The Employment Agreement has been amended three times previously. Prior amendments are summarized in the recitals to the proposed Fourth Amendment (Attachment).
Continuity and Succession Planning
The City Council has consistently recognized it is in the best interests of the City Council, City staff, the community, and other stakeholders to have stability in the City Manager position. The City Council also recognizes the importance of succession planning for the City Manager position. Part of that process includes periodically reviewing the City Manager’s salary to ensure it remains competitive with neighboring cities in the area and local agencies that serve Claremont’s residents.
Proposed Salary Increase (8%)
The City Manager’s initial salary in 2021 was $224,000. Per Section 2.2 of the Employment Agreement, the City Manager has received the same cost of living adjustments as Department Head employees who are part of the Claremont Management Association (“CMA”). In Claremont, all represented Department Heads are eligible for annual merit increases up to six percent (6%) or eight percent (8%) depending on their bargaining unit.
With annual cost of living adjustments, the City Manager’s salary in fiscal year 2026-2027 is $277,548. This is significantly lower than the salaries of top executives in other local agencies that serve Claremont’s residents and generally lower than the salaries of most City Managers of other cities in the region. Examples are set forth in the table below:
Based on Mr. Pirrie’s performance, the City Council approved one-time merit awards each year for the past three years as follows: $15,000 in 2023; $15,000 in 2024; and 8% ($20,929) in 2025.
Instead of another one-time merit award, the City Manager has respectfully requested the City Council consider a salary increase of eight percent (8%) in 2026. This would raise the City Manager’s annual salary from $277,548 to $299,752 (a salary increase of $22,204 in 2026). The proposed increase would bring the City Manager’s salary in line with surrounding cities of comparable sizes (population-wise), such as the Cities of Montclair ($304,512) and San Dimas ($299,388).
In exchange for the proposed salary increase, Mr. Pirrie has offered to decouple his annual cost of living adjustments (“COLAs”) from those received by Department Head Employees in the CMA to annual COLAs based on the consumer price index (“CPI”) (effective July 1, 2027).
Extended Term and Optional Transition Period
Per the Second Amendment, the term of the City Manger’s Employment Agreement expires February 23, 2028. Mr. Pirrie has respectfully requested the City Council extend the term of his Employment Agreement to June 30, 2029.
To assist in the future transition to a new or interim City Manager following Mr. Pirrie’s anticipated future retirement, the proposed Fourth Amendment would include an optional transition period that would extend the term of the Agreement for up to thirty (30) days to allow Mr. Pirrie to continue his employment while he transfers his responsibilities to his successor. Both parties would need to agree to exercise this option. If the City terminates Mr. Pirrie’s employment during the transition period, Mr. Pirrie would not be entitled to any severance benefits.
Other than the proposed amendments discussed above, the proposed Fourth Amendment would not include any other changes to the City Manager Employment Agreement.
LEGAL REVIEW
This report and the attached contract amendment and resolution were prepared by the City Attorney.
RELATIONSHIP TO CITY PLANNING DOCUMENTS
Staff has evaluated the agenda item in relationship to the City’s strategic and visioning documents and finds the following: Council Priorities, General Plan, and the 2026-28 Budget.
CEQA REVIEW
This item is not subject to environmental review under the California Environmental Quality Act (CEQA).
PUBLIC NOTICE PROCESS
The agenda and staff report for this item have been posted on the City website and distributed to interested parties. If you desire a copy, please contact the City Clerk’s Office.
Submitted by:
Alisha Patterson
City Attorney
Attachment:
Proposed Fourth Amendment to City Manager Employment Agreement