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Home My WebLink About16 SIXTH AMENDMENT TO CITY MANAGER EMPLOYMENT AGREEMENTAgenda Item 16 Reviewed: - AGENDA REPORT City Manager Finance Director NSA MEETING DATE: NOVEMBER 6, 2018 TO: FROM: SUBJECT: SUMMARY HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL DAVID E. KENDIG, CITY ATTORNEY DERICK YASUDA, DIRECTOR OF HUMAN RESOURCES SIXTH AMENDMENT TO CITY MANAGER EMPLOYMENT AGREEMENT 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 18-81 approving Amendment No. 6 to the Employment Agreement with the City Manager and authorize the Mayor to execute the Amendment. FISCAL IMPACT Approximately $56,600 from November 6, 2018 through the end of the extended agreement on July 3, 2020. 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, Amendment No. 4 to the Agreement on August 2, 2016 and Amendment No. 5 to the Agreement on July 18, 2017. 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 sixth time. The proposed Amendment to the City Manager's Employment Agreement would extend the term of the Agreement from July 5, 2019 to July 3, 2020. In addition, the proposed Amendment would provide the City Manager with a vehicle allowance in lieu of a City vehicle and additional City -paid contributions to the City Manager's deferred compensation plan. All other terms and conditions of employment would remain as described in the previously amended Agreement. City Council Agenda Report November 6, 2018 Sixth Amendment to Employment Agreement with City Manager Page 2 Dq�0 az�4 David E. Kendig City Attorney Attachments: Derick Yasuda Director of Human Resources 1. City Council Resolution No. 18-81 2. Amendment No. 6 to City Manager Employment Agreement RESOLUTION NO. 18-81 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN APPROVING AMENDMENT NO. 6 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, 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, Amendment No. 5 to Employment Agreement was approved by the City Council on July 18, 2017 (the "Fifth Amendment") which provided additional accrual of General Leave and extended the term of the Agreement to July 5, 2019; and WHEREAS, the Council desires to amend the Agreement to provide a vehicle allowance in lieu of a City vehicle, provide additional contributions to deferred compensation, and extend the term of the Agreement to July 3, 2020. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Tustin hereby approves Amendment No. 6 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, Amendment No. 5 and Amendment No. 6. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Tustin held on the 6th day of November 2018. Resolution 18-81 Page 1 of 2 ELWYN A. MURRAY Mayor ATTEST: ERICA N. YASUDA City Clerk STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF TUSTIN ) I, Erica N. Yasuda, 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. 18-81 was duly passed and adopted at a regular meeting of the Tustin City Council, held on the 6th day of November 2018, by the following vote: COUNCILMEMBER AYES: COUNCILMEMBER NOES: COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT: ERICA N. YASUDA City Clerk Resolution 18-81 Page 2 of 2 CITY OF TUSTIN AMENDMENT NO.6 TO EMPLOYMENT AGREEMENT This Amendment No. 6 to the EMPLOYMENT AGREEMENT ("Agreement") is made effective as of November 6, 2018, 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 entered into the Agreement effective December 29, 2011; WHEREAS, the parties entered into Amendment No. 1 to the Agreement effective July 1, 2013, Amendment No. 2 to the Agreement effective October 7, 2014, Amendment No. 3 to the Agreement effective November 3, 2015, Amendment No. 4 to the Agreement effective August 2, 2016, and Amendment No. 5 to the Agreement effective July 18, 2017; and WHEREAS, the parties desire to further amend the Agreement in order to extend its term, provide a vehicle allowance in lieu of a City vehicle, and increase the City's contribution to Employee's deferred compensation. 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 3, 2020." Section 2: Vehicle Allowance A sentence shall be added to Section 5.E of the Agreement (City Vehicle), to read as follows: "Effective the pay period that includes January 1, 2019, the City shall provide Employee with a vehicle allowance of six hundred and fifty dollars ($650.00) per month." Section 3: Deferred Compensation Section 5.G of the Agreement (Deferred Compensation), shall be modified such that it reads, in its entirety, as follows: "The City shall contribute one thousand two hundred and seventy-one dollars ($1,271.00) per biweekly pay period into a City -sponsored deferred compensation plan on behalf of Employee." Section 4: 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 Amendment No. 6 to the Agreement to be executed on the dates reflected below each signature. CITY CITY OF TUSTIN A Municipal Corporation 10 ELYWN A. MURRAY Mayor DATE: ATTEST: ERICA N. YASUDA City Clerk 2 EMPLOYEE Lo DATE: JEFFREY C. PARKER Employee APPROVED AS TO FORM: DAVID E. KENDIG City Attorney DATE: