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  Item # 10.       
City Council Regular
Meeting Date: 05/13/2019  
FROM: Anthony Taylor

SUBJECT
Approve the Fourth Amendment to the City Manager Employment Agreement
RECOMMENDATION
Approve the Fourth Amendment to the City Manager Employment Agreement.
DISCUSSION
The City Manager Employment Agreement calls for an annual performance evaluation and salary review. This annual review process began in January of this year. As part of this review process, on March 11, 2019 and April 8, 2019, the City Council met in Closed Session regarding Public Employee Performance Evaluation, pursuant to Government Code Section 54957(b)(1), Title: City Manager. Consistent with the evaluation and City Council direction, and as provided by the City Manager’s employment agreement, the City Attorney drafted modifications to the City Manager Employment Agreement.

The Fourth Amendment provides a 3.1% cost-of-living adjustment from the start of the annual evaluation process, January 11, 2019 and a 2% cost-of-living adjustment effective July 12, 2019, next fiscal year. These adjustments, which account for inflation and reflect cost-of-living adjustments afforded other city employees, set the City Manager's salary to $235,928. Net of the City Manager’s pension contribution, the salary is $224,131. All other provisions of the City Manager Employment Agreement remain the same.
 
 
A comparison of cost-of-living adjustments, net of additional pension contributions, provided city employees during the City Manager’s tenure appears below:
 
Cost-of-Living
Adjustments
Police Officers Association Directors &
Managers
City Manager
FY 2015-16 2% 2% 0%
FY 2016-17 2.5% 2% 3%
FY 2017-18 2.5% 0.5% 0.5%
FY 2018-19 2.25% 2% 0%
Total 9.25% 6.5% 3.5%
 
The Amendment also provides the City Manager a one-time lump sum bonus payment of $7,100 in consideration for retaining his services.

Government Code section 54953, requires a local agency’s legislative body to orally report in an open meeting a summary of recommendations for final action on the salaries, salary schedules, or compensation paid in the form of fringe benefits to a local agency executive (i.e. City Manager). In order to comply with Government Code section 54953, the City Attorney will provide an oral summary of the Amendment.

The Amendment and original City Manager Employment Agreement (with prior amendments) between the City and City Manager are attached.
BUDGET IMPACT
There are sufficient funds in the FY 2018-19 budget to provide for the City Manager Employment Agreement Amendment.
LEGAL REVIEW
The City Attorney drafted the Fourth Amendment.
  
APPROVED BY:    Peter Grant, City Manager
Attachments
Fourth Amendment to City Manager Agreement
CM Contract and Amendments

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