The Hayward City Council’s lengthy courtship of City Manager Kelly McAdoo ends Tuesday night with a new five-year contract extension.

McAdoo, who became Hayward city manager in August 2016, will receive an 18 percent boost in base salary over the life of the agreement. The council is set to formally approve the extension at Tuesday night’s meeting.


Under terms of the deal, McAdoo new contract will run from Dec. 1, 2018 through June 30, 2023. McAdoo currently earns $271,227 in base salary under a short-term contract negotiated last June. Starting in June 2019, she will earn $295,637 in base salary ($409,431 in total salary and benefits).

McAdoo’s compensation then increases to $301,550 starting in June 2020 through the final three years of the contract. Total salary and benefits also rise to $442,911 in Fiscal Year 2021, and slightly increase to $449,978 and $455,793 by Fiscal Year 2023.

McAdoo severance package also doubles from three-to-six months under the new deal. A total compensation survey will be conducted by the city in 2021 to inform the council whether or not to negotiate further salary adjustments.

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According to the city, McAdoo’s compensation languished near the bottom of comparably sized cities in the region. Based on a series of council actions over the past year, it appears elected officials–content with McAdoo’s performance during her first two years on the job–feared losing her services to another city.

The council had previously expressed a desire for McAdoo to live in the city and she agreed, but not before the council offered a 30-year, $650,000 home loan. The interest on the loan is capped at 2.38 percent during the first five years of the loan.

To facilitate the move to Hayward, McAdoo had to absorb penalties for breaking her former lease. Last June, when the council approved a short-term contract, which ends this month, they gave McAdoo $12,000 for relocation expenses.

McAdoo first came to the city in 2010, serving as assistant city manager. She took over for former Hayward City Manager Fran David, who retired in 2016.

During McAdoo’s short tenure as city manager, according to the city, she was instrumental in repairing the administration’s contentious relations with its city employees, imparting efficiency in city government, and developing a five-year fiscal sustainability strategy. among other accomplishments.