Hayward city manager, who received low-interest loan to move to city, wants relocation expenses

Amid a growing housing crisis in Hayward, City Manager Kelly McAdoo received a low-interest loan last year to purchase a home in the city. Hayward councilmembers approved the loan as part of McAdoo’s current one-year, $254,072 contract in order to support, but not instruct her, to lay roots in the city.

**UPDATE below**

As concerns and outright fear is being voiced at Hayward council meetings for months, news of McAdoo’s favorable housing benefit is not widely known. Now, as part of negotiations, currently underway, between the council and McAdoo for five-year contract, comes a proposal to offer her up to $12,000 in relocation expenses following her move to Hayward.

McAdoo’s contract is set to expire on June 30. On Tuesday, the council will discuss extended the contract to Nov. 30, while negotiations over a long-term extension continue. Included in the agenda item is the proposed stipend for relocation expenses.

McAdoo vertical headshot
Hayward City Manager Kelly McAdoo’s one-year, $254,072 contract expires on June 30. The council Tuesday night wants to extend it five months in order to continue negotiations for a new five-year deal.

McAdoo currently pays five percent of her salary toward CalPERS and 20 percent of health benefits, according to the city. A survey done by the city last March found McAdoo’s salary and benefits rank 15 percent below “mid-market” contracts in similar jurisdictions.

Last year, the Hayward City Council urged McAdoo to move to Hayward. The idea was only a suggestion Demanding a public employee to move to the city in which they work is illegal. McAdoo, though, followed through, and purchased a home in town late last year, according to a city staff report.

Under the current terms of McAdoo’s contract, the city would offer her a low-interest loan up to $650,000 over 30 years to aid her relocation to Hayward. Interest during the first five years of the loan would be capped at 2.38 percent, according to the contract.

McAdoo’s relocation, however, was hampered by the terms of her previous lease. To break the lease, McAdoo absorbed $15,000 in additional expenses in order to hasten the move to Hayward in a timely fashion, according to the staff report. Not doing so, the report continued, would delay her move to Hayward for one year.

“Ms. McAdoo was extremely fiscally responsible and offset the expenses by attempting to sublet and renting her apartment for brief periods over the last year. The Council agrees that not delaying the move for up to one year was in the best interest of the City and has seen the positive benefit of having the City Manager live in Hayward,” said the report compiled by the city’s Human Resources Department and signed by Mayor Barbara Halliday.

McAdoo has worked for the city since 2010, under former City Manager Fran David. When David retired in the summer of 2016, McAdoo was elevated to city manager. The $254,072 contract signed in June 2017 was the last of two one-year deals that also provides McAdoo with a $450-a-month personal equipment and car stipend and $100-a-month stipend for gym memberships, Zumba classes, and weigh-loss programs.