Placement: New Business
Action Requested: Motion / Vote
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City Manager’s Annual Review
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Submitted By: Natalie Cabrera, Director, Human Resources
Strategic Plan Link: The City's Goal of a high-performing city government organization.
Executive Summary (General Business): Mr. Merejo commenced his tenure as City Manager for the City of Port St. Lucie on February 18, 2023 and, per his employment agreement, he may receive an annual evaluation by the City Council at the Winter Workshop (which usually convenes in the second quarter of the fiscal year), or at another Council Workshop as determined by the City Council. As part of the review, the City Council has the authority to provide Mr. Merejo a merit salary increase.
Presentation Information: Staff is available to answer any questions the Council may have.
Staff Recommendation: Move that the Council review and discuss the City Manager’s performance and consider an increase in pay, provide an effective date for any increase, and provide direction on any additional perquisites.
Alternate Recommendations:
1. Move that the Council amend the recommendation and modify the compensation package for the City Manager and provide an effective date.
2. Move that the Council provide staff with direction.
Background: As part of Mr. Merejo’s annual review, the City Council has the authority to provide Mr. Merejo with a merit salary increase, as a benefit, which is available to all other City employees as set forth in Section 12.12(A) of the Personnel Rules and Regulations. Included herewith, please find the recent market analysis conducted with respect to the salaries of city managers in comparable jurisdictions. Please note, the City Manager position is not included on the City’s pay plan as it is an appointed position. As such, there is no minimum or maximum rate established for the position.
Issues/Analysis: N/A
Financial Information: The City Manager’s current annual salary is $321,321.26. In addition, Mr. Merejo receives a car allowance of $600.00 per month. However, in lieu of the monthly stipend for the car allowance, the City Manager respectfully requests a take-home vehicle. Should the Council approve this request, a proposed Amendment to the City Manager’s Employment Agreement has been included to memorialize this revision. Should the Council deny the request for a take-home vehicle, the monthly stipend of $600 will remain in effect. Additionally, and in accordance with the terms and conditions outlined in Mr. Merejo’s employment agreement, he is scheduled to receive the same cost-of-living salary increase which is provided to all other general employees of the City. However, future increases for general employees have not yet been negotiated for 2026 and beyond. Mr. Merejo received the following salary adjustments in 2025: (1) Increase of 4% effective March 8, 2025, provided to all City employees; and (2) Increase of 7% effective October 4, 2025, provided to all City employees. The Council last conducted the City Manager’s performance review on February 24, 2025.
Special Consideration: Mr. Merejo has over 36 years’ experience with the City of Port St. Lucie, with 3 years of service in the capacity of City Manager.
Location of Project: N/A
Business Impact Statement: N/A
Attachments:
1. Employment Agreement;
2. First Amendment to Employment Agreement;
3. City Manager’s Self-Assessment;
4. City Manager’s Annual Report;
5. FY 25-26 City Manager Market Analysis;
6. Proposed Second Amendment to Employment Agreement.
NOTE: All of the listed items in the “Attachment” section above are in the custody of the City Clerk. Any item(s) not provided in City Council packets are available upon request from the City Clerk.
Internal Reference Number: N/A
Legal Sufficiency Review:
N/A