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Home My WebLink About12 FIFTH AMENDMENT TO CITY MANAGER EMPLOYMENT AGREEMENTAgenda Item 12 Reviewed: AGENDA REPORT City Manager Finance Director /A MEETING DATE: JULY 18, 2017 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: DAVID E. KENDIG, CITY ATTORNEY DERICK YASUDA, DIRECTOR OF HUMAN RESOURCES SUBJECT: FIFTH AMENDMENT TO CITY MANAGER EMPLOYMENT AGREEMENT SUMMARY Adoption of the attached Resolution will amend the terms and conditions of employment for the City Manager. RECOMMENDATION It is recommended that the City Council adopt Resolution 17-41 approving Amendment No. 5 to the Employment Agreement with the City Manager and authorize the Mayor to execute the Amendment. FISCAL IMPACT There are no direct costs to the City as a result of this Amendment. BACKGROUND AND DISCUSSION The City Council entered into an employment agreement with Jeffrey C. Parker to serve as Tustin's City Manager beginning December 29, 2011, and approved Amendment No. 1 to the Agreement on July 2, 2013, Amendment No. 2 to the Agreement on October 7, 2014, Amendment No. 3 to the Agreement on November 3, 2015, and Amendment No. 4 to the Agreement on August 2, 2016. The City Council's authorized labor negotiators and the City Manager have now reached a tentative verbal agreement to amend the City Manager's employment agreement for a fifth time. The proposed Amendment to the City Manager's Employment Agreement would extend the term of the Agreement from June 30, 2018 to July 5, 2019. In addition, the proposed Amendment would provide the City Manager with an additional accrual of two hundred and forty-eight (248) hours of General Leave in August of each year, with a requirement that the City Manager use at least one hundred and sixty (160) hours of General Leave every calendar year for purposes of time off from work. All other terms and conditions of employment would remain as described in the previously amended Agreement. City Council Agenda July 18, 2017 Fifth Amendment to Page 2 Report Employment Agreement with City Manager Attachments: hn -\�, vj-- Derick YasZan Director of Resources 1. City Council Resolution No. 17-41 2. Amendment No. 5 to City Manager Employment Agreement RESOLUTION NO. 17-41 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN APPROVING AMENDMENT NO. 5 TO THE EMPLOYMENT AGREEMENT WITH THE CITY MANAGER WHEREAS, the City Council of the City of Tustin, California (the "Citi') approved an Employment Agreement ("Agreement") with Jeffrey C. Parker to serve as City Manager effective December 29, 2011; and WHEREAS, Amendment No. 1 to Employment Agreement was approved by the City Council on July 2, 2013 (the "First Amendment") which adjusted the compensation for the City Manager but which did not limit the term of the Agreement; and WHEREAS, Amendment No. 2 to Employment Agreement was approved by the City Council on October 7, 2014 (the "Second Amendment") which established a fixed term expiring on December 29, 2017, to make revisions to the severance provisions to limit the potential duration of severance and benefit payments in the event of termination, and to authorize additional accrued General Leave to be cashed out; and WHEREAS, Amendment No. 3 to Employment Agreement was approved by the City Council on November 3, 2015 (the "Third Amendment") which adjusted the compensation for the City Manager and extended the term of the Agreement to, June 30, 2018; and WHEREAS, Amendment No. 4 to Employment Agreement was approved by the City Council on August 2, 2016 (the "Fourth Amendment") which adjusted the compensation for the City Manager and provided additional accrual of Administrative Leave for a finite period of time; and WHEREAS, the Council desires to amend the Agreement to extend the term of the Agreement and provide additional accrual of General Leave. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Tustin hereby approves Amendment No. 5 attached hereto and incorporated by reference, and ratifies the Agreement as amended by Amendment No. 1, Amendment No. 2, Amendment No. 3, Amendment No. 4, and Amendment No. 5. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Tustin held on the 18th day of July 2017. DR. ALLAN BERNSTEIN Mayor Resolution 17-41 Page 1 of 2 ATTEST: ERICA N. RABE City Clerk STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF TUSTIN ) I, Erica N. Rabe, City Clerk 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. 17-41 was duly passed and adopted at a regular meeting of the Tustin City Council, held on the 18th day of July 2017, by the following vote: COUNCILMEMBER AYES: COUNCILMEMBER NOES: COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT: ERICA N. RABE City Clerk Resolution 17-41 Page 2of2 CITY OF TUSTIN AMENDMENT NO.5 TO EMPLOYMENT AGREEMENT This Amendment No. 5 to the EMPLOYMENT AGREEMENT ("Agreement") is made effective as of July 18, 2017, 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; WHEREAS, the parties entered into Amendment No. 1 to Employment Agreement effective July 1, 2013, Amendment No. 2 to Employment Agreement effective October 7, 2014, Amendment No. 3 to Employment Agreement effective November 3, 2015, and Amendment No. 4 to Employment Agreement effective August 2, 2016; and WHEREAS, the parties desire to further amend the Employment Agreement in order to extend the term of the Agreement and provide additional accrual of General Leave. NOW, THEREFORE, it is mutually agreed by and between the City and Employee as follows: Section 1: Term Section 1 of the Agreement (Term) shall be modified such that it reads, in its entirety, as follows: "The City hereby appoints Employee and Employee hereby accepts employment with the City beginning December 29, 2011. This Agreement shall be reviewed at least once every year by the City Council or at the request of Employee. The Term of this Agreement shall expire on July 5, 2019. This Agreement may be extended by written amendment to this Agreement." Section 2: General Leave Two sentences shall be added to Section 5 of the Agreement (Benefits and Leaves of Absence), to read as follows: "Effective August 1, 2017, Employee shall receive an additional accrual of two hundred and forty-eight (248) hours of General Leave on the first paycheck in August of each calendar year. This additional, annual accrual of General Leave is in addition to any accrual of General Leave provided under the terms of the Executive and Management Salary Resolution (Resolution No. 17-06 or a subsequent succeeding Resolution) and shall also increase Employee's maximum accrual of General Leave by two hundred and forty-eight (248) hours beyond the amount specified in said Resolution. Each calendar year, Employee shall be required to use a minimum of one hundred and sixty (160) hours of General Leave for purposes of time off from work. Such use of General Leave need not be taken on consecutive work days." 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. CITY CITY OF TUSTIN A Municipal Corporation DR. ALLAN BERNSTEIN Mayor DATE: ATTEST: ERICA N. RABE City Clerk APPROVED AS TO FORM: DAVID E. KENDIG City Attorney DATE: 2 EMPLOYEE LE "1 JEFFREY C. PARKER Employee