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HomeMy WebLinkAbout07 AMENDMENT TO EMPLOYMENT AGREEMENT W/ CITY MANAGERAgenda Item # Reviewed: 41 Ply A HORT GENDA fvl_� City Manager Finance Director ,�/A MEETING DATE: JULY 2,2013 FROM: DAVID E. KENDIG, CITY ATTORNEY SUBJECT: AMENDMENT TO CITY MANAGER EMPLOYMENT AGREEMENT Rig] LTI I ►LTJ The City Council entered into an employment agreement with Jeffrey C. Parker to serve as Tustin's City Manager beginning December 29, 2011. Approval by the City Council of the attached Resolution would amend the existing employment agreement. Pleasure of the City Council. FISCAL IMPACT For Fiscal Year 2013-14, the contract amendment will result in an additional one-time cost of $24,000, plus an additional cost of approximately $4,588 for an increase in salary partially offset by an increased employee contribution to the CalPERS retirement plan. BACKGROUND AND DISCUSSION The City Council executed an original employment agreement with Mr. Parker effective December 29, 2011. This agreement states that the agreement will be reviewed at least once every year by the City Council or at the request of the City Manager. Now that the City has reached agreement during labor negotiations with the majority of the City's represented employee groups, the City Council's authorized negotiator and the City Manager have reached a tentative verbal agreement on adjustment's to the City Manager's compensation. The City Manager's employment agreement provides that the City Manager shall receive the same benefits that are provided to other civilian Executive Management employees such as participation in the CalPERS retirement plan and a Flexible Benefits contribution for medical, dental, and vision insurance, as outlined in the Executive Management Salary Resolution. With the adoption of a new Executive Management Salary Resolution, the City Manager, like all other civilian Executive Management City Council Agenda Report July 2, 2013 Amendment to Employment Agreement with City Manager Page 2 WIM-51 1. City Council Resolution No. 13-68 2. Amendment No. I to Employment Agreement with Jeffrey C. Parker RESOLUTION NO. 13 -68 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, APPROVING AMENDMENT NO. 1 TO THE EMPLOYMENT AGREEMENT WITH THE CITY MANAGER WHEREAS, the City Council of the City of Tustin, California (the "City ") approved an Employment Agreement ( "Agreement ") with Jeffrey C. Parker to serve as City Manager effective December 29, 2011; and WHEREAS, the Agreement calls for the periodic review of the City Manager's performance and compensation; and WHEREAS, after a favorable evaluation of the City Manager's performance, the City Council desires to increase the City Manager's compensation; NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Tustin hereby approves the Agreement as amended by Amendment No 1 attached hereto and incorporated by reference. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Tustin held on the 2nd day of July 2013. ELWYN A. MURRAY Mayor FA ERICA RABE City Clerk Services Supervisor Resolution 13 -68 Page 1 of 2 STATE OF CALIFORNIA COUNTY OF ORANGE SS CITY OF TUSTIN 1, Erica Rabe, City Clerk Services Supervisor and ex-officio Clerk of the City Council of the City of Tustin, California, do hereby certify that the whole number of the members of the City Council of the City of Tustin is five; that the above and foregoing Resolution No. 13-68 was duly passed and adopted at a regular meeting of the Tustin City Council, held on the 2nd day of July 2013, by the following vote: Z ERICA RABE City Clerk Services Supervisor Resolution 13-68 Page 2 of 2 CITY OF TUSTIN AMENDMENT NO. I TO EMPLOYMENT AGREEMENT This Amendment No. I to the EMPLOYMENT AGREEMENT ("Agreement") is made effective as of July 1, 2013, and is entered into by and between the CITY OF TUSTIN, a California municipal corporation (the "City") and Jeffrey C. Parker, an individual ("Employee"). WHEREAS, the City and Employee have entered into the Agreement effective December 29, 2011; and WHEREAS, the parties desire to amend the Agreement to provide Employee with compensation adjustments; and NOW, THEREFORE, it is mutually agreed by and between the City and Employee as follows: Section 1: Salary A sentence shall be added to Section 4 of the Agreement (Salary), to read as follows: "Effective the pay period that includes July 1, 2013, Employee's annual base salary shall be increased to $260,400." Section 2: 'One-Time Lump-Sum Cash Payment A sentence shall be added to Section 5 of the Agreement (Benefits and Leaves of Absence), to read as follows: "Effective the pay period that includes July 1, 2013, Employee shall receive a one-time lump-sum cash payment of $24,000." Section 3: Other Terms and Conditions Except as expressly amended herein, all other terms and conditions of the Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on the dates reflected below each signature. Page 1 of 2 CITY CITY OF TUSTIN A Municipal Corporation Lo ELWYN A. MURRAY Mayor ATTEST: ERICA RABE City Clerk Services Supervisor APPROVED AS TO FORM: DAVID E. KENDIG City Attorney 1010 12 0119-OUN 0 Page 2 of 2 JEFFREY C. PARKER Employee