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SAN BENITO — After nearly six months on the job, City Manager Fred Sandoval’s signing an agreement to head San Benito’s economic development arm, bumping up his $135,000 salary to $210,000.
As part of the agreement, the EDC’s agreeing to pay to Sandoval an annual salary of $75,000 while also compensating him for serving the agency from October, the month he took the city’s top administrative position, to Jan. 18, the day the new contract became effective.
“The San Benito EDC agrees to pay Sandoval a fixed fee upon the execution of this agreement for his valuable consultation, services, guidance and representation of the San Benito EDC from October 2023 to Jan. 18, 2024,” the agreement states. “Sandoval has been providing valuable consultation, services, guidance and representation to the San Benito EDC since October 2023 and the San Benito EDC wishes to formalize this agreement and ratify all of Sandoval’s services to date with compensation.”
Under that clause, the EDC will pay Sandoval based on his salary as the agency’s director, Mayor Rick Guerra said.
At City Hall, Sandoval said his new job duties include serving as “lead analyst and negotiator for economic growth and development in San Benito.”
As Pharr’s longtime former city manager, Sandoval also served as economic development director.
“The city-EDC departmental model is efficient and effective and I am very comfortable in that role,” he said.
Since Ramiro Aleman, the EDC’s former executive director drawing a $103,000 salary, resigned in November to take on a job as head of Cameron County’s first economic development department, the EDC’s board had been searching for the agency’s next director.
With his experience, Sandoval will help streamline the city’s economic development efforts, Guerra said.
“He’s got the hats of city manager and EDC director, so it’s very convenient,” he said. “People and companies are reaching out to him. This gentleman has been moving San Benito forward from Day 1 as city manager — and EDC director even before he was appointed.”
In October, city commissioners hired Sandoval at a salary of $135,000, signing him to a one-year contract opening with a six-month probationary period closing next month.
Under Sandoval’s city manager’s contract, commissioners are set to evaluate his job performance, during which they could offer him a pay increase, Guerra said.
“It’s going to be up to the commission,” he said.
As part of Sandoval’s EDC agreement, the board’s evaluations could also lead to pay increases.
“The San Benito EDC may evaluate Sandoval from time to time and determine salary increases,” the agreement states.
Under the agreement, the EDC agrees to pay Sandoval unspecified vacation leave, sick leave and health insurance.
“The San Benito EDC will pre-pay or reimburse expenses for travel, meals, housing, and other incidental costs for Sandoval,” the agreement states.
The agreement would offer Sandoval severance pay if he’s terminated without cause.
“This agreement may be terminated at any time by the board of directors and/or Sandoval without cause, providing the other party no less than 30 days written notice,” the agreement states. “Upon termination, Sandoval shall be paid all consideration and benefits through the 13th day beginning on the date of the notice of termination.”
“The San Benito EDC may terminate Sandoval for cause for any of the following reasons — theft, serious breach of fiduciary duty to the San Benito EDC, violation of any material provision of this agreement or arrest for felony or crime of moral turpitude,” the agreement states.
The agreement calls for mediation to resolve any disagreements.
“In the event of a controversy between the parties arising out of or relating to this agreement, the parties will attempt to resolve any controversy in good faith,” the agreement states. “If a controversy continues without a resolution following 60 days from initial discussions, the parties agree to submit the issue to a non-binding mediation with an agreed third party in Cameron County, Texas. Each party will bear the costs of mediation and attorneys’ fees.”
At City Hall, Sandoval’s appointment marks at least the third time the city manager has taken over as head of the EDC.
In 2016, past City Manager Manuel De La Rosa took over as the EDC’s director before replacing the position with a coordinator’s job before officials hired Rebeca Castillo as the agency’s economic development director.
During Castillo’s tenure, a split city commission cut into her job title in June 2021, giving De La Rosa the EDC’s chief executive officer’s job along with a $45,000 pay increase.
By October 2021, Castillo had returned to the CEO’s post.
Sandoval’s appointment comes five months after commissioners hired him to replace De La Rosa, who was making a $175,000 salary, after they bought out his contract for about $200,000.
Sandoval, who served as Pharr’s city manager from 2004 to 2015 before taking over as owner of Sylvan Learning from 2016 to 2021, had been serving as chief executive officer with Renryder Solutions since 2021 while working as a field consultant with Strategic Partnerships in Austin since 2022, his LinkedIn profile states.
During his 11-year stint as Pharr’s city manager, he also served as executive director of the city’s economic development department, helping to draw businesses such as Costco Wholesale and Papadeaux Seafood Kitchen.
Sandoval’s LinkedIn profile states he studied biology at the University of Texas-Rio Grande Valley from 1990 to 1991.
