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Home My WebLink About19 AMENDMENT NO. 2 CITY MANAGER EMPLOYMENT AGREEMENTAgenda Item _______ Reviewed: City Manager _______ Finance Director _______ MEETING DATE: NOVEMBER 15, 2022 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: DAVID E. KENDIG, CITY ATTORNEY DERICK YASUDA, DIRECTOR OF HUMAN RESOURCES SUBJECT: AMENDMENT NO. 2 TO CITY MANAGER EMPLOYMENT AGREEMENT, AND APPOINTMENT OF THE CITY MANAGER TO SERVE AS ACTING CITY TREASURER AT ANY TIME WHEN THE DIRECTOR OF FINANCE POSITION IS VACANT SUMMARY Following the conclusion of negotiations with City Manager Matthew S. West, the City Council will consider approval of Amendment No. 2 to his Employment Agreement. RECOMMENDATION 1.Approve Amendment No. 2 to the Employment Agreement with City Manager Matthew S. West in the form attached as Exhibit 3; and 2.Appoint the City Manager to serve as Acting City Treasurer at any time when the Director of Finance position is vacant. FISCAL IMPACT The proposed Amendment would increase annual City expenditures by approximately $13,029 effective January 1, 2023. CORRELATION TO THE STRATEGIC PLAN Approval of Amendment No. 2 to the Employment Agreement and appointment of the City Manager to serve as Acting City Treasurer during a vacancy in the City’s Director Finance position would advance the goal in the City’s Strategic Plan to be “a high performance organization with effective customer service provided by a professional workforce”, and correlates with the Council-approved strategy to encourage “succession planning for all parts of the organization to cultivate and grow leadership”. AGENDA REPORT 19 N/A DocuSign Envelope ID: 25F0A63E-08D2-447B-96CB-28073DC6C759 City Council Agenda Report November 15, 2022 Amendment No. 2 to City Manager Employment Agreement Page 2 BACKGROUND AND DISCUSSION On May 7, 2019, the City Council unanimously appointed Mr. West as Tustin’s City Manager. Concurrently the City Council approved an Employment Agreement with the City Manager, a copy of which is attached hereto as Exhibit 1. On January 18, 2022, that Agreement was amended by Amendment No. 1 to the Employment Agreement, a copy of which is attached hereto as Exhibit 2. Pursuant to Section 3 of the 2019 Employment Agreement, the City Council engages in annual performance reviews. The Employment Agreement further provides that “Upon completion of each such review and evaluation process, the City Council shall determine the amount, if any, of a merit salary adjustment and/or cost of living adjustment (COLA) to be provided, which may be made effective retroactively to the anniversary date of this Agreement.” (The most recent anniversary date of the Employment Agreement was May 7, 2022.) The City Council concluded its closed session performance review on November 10, 2022 and met with its negotiators in closed session to discuss contract negotiations on that same date. The Proposed Amendment The proposed Amendment No. 2, if approved, would: • Recognize the City Manager’s appointment to serve as Acting City Treasurer during any vacancy in the position of Director of Finance; and • Adjust the City Manager’s annual base salary from $269,256.00 to $275,995.20 effective January 1, 2023; and • Adjust the City’s annual contribution to the the City Manager’s deferred compensation account to 50% of the applicable annual limit for contributions to 457(b) plans. No other changes to the City Manager’s compensation or benefits are proposed in the Amendment. Attachments: 1: May 7, 2019 Employment Agreement 2: Amendment No. 1 to Employment Agreement 3: Proposed Amendment No. 2 to Employment Agreement DocuSign Envelope ID: 25F0A63E-08D2-447B-96CB-28073DC6C759 ATTACHMENT 1 DocuSign Envelope ID: 25F0A63E-08D2-447B-96CB-28073DC6C759 DocuSign Envelope ID: 25F0A63E-08D2-447B-96CB-28073DC6C759 DocuSign Envelope ID: 25F0A63E-08D2-447B-96CB-28073DC6C759 DocuSign Envelope ID: 25F0A63E-08D2-447B-96CB-28073DC6C759 DocuSign Envelope ID: 25F0A63E-08D2-447B-96CB-28073DC6C759 DocuSign Envelope ID: 25F0A63E-08D2-447B-96CB-28073DC6C759 DocuSign Envelope ID: 25F0A63E-08D2-447B-96CB-28073DC6C759 DocuSign Envelope ID: 25F0A63E-08D2-447B-96CB-28073DC6C759 DocuSign Envelope ID: 25F0A63E-08D2-447B-96CB-28073DC6C759 DocuSign Envelope ID: 25F0A63E-08D2-447B-96CB-28073DC6C759 DocuSign Envelope ID: 25F0A63E-08D2-447B-96CB-28073DC6C759 DocuSign Envelope ID: 25F0A63E-08D2-447B-96CB-28073DC6C759 1 CITY OF TUSTIN AMENDMENT NO. 1 TO EMPLOYMENT AGREEMENT This Amendment No. 1 to the EMPLOYMENT AGREEMENT ("Agreement") is made effective as of January 3, 2022, and is entered into by and between the CITY OF TUSTIN, a California municipal corporation (the "City") and Matthew S. West, an individual ("Employee"). WHEREAS, the City and Employee entered into the Agreement effective May 13, 2019; and WHEREAS, the parties desire to amend the Agreement in order to provide for increases in Employee’s salary and to remove a paragraph in Section 2 as indicated below. NOW, THEREFORE, it is mutually agreed by and between the City and Employee as follows: Section 1: Salary Two sentences shall be added to Section 4 of the Agreement (Salary), to read as follows: “Effective January 3, 2022, Employee’s annual base salary shall be increased to two hundred and sixty-two thousand six hundred and eighty-three dollars and twenty cents ($262,683.20). “Effective July 4, 2022, unless the City Council directs otherwise prior to July 4, 2022, Employee’s annual base salary shall be increased to two hundred and sixty-nine thousand two hundred and fifty-six dollars ($269,256.00).” Section 2: Deletion of Temporary Appointment The following paragraph of Section 2 [Duties and Authority] of the Agreement is hereby deleted: “Employee shall also temporarily serve as Acting City Treasurer, with no additional compensation for performing such duties, until such time that the City Council appoints another individual as City Treasurer.” 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. ATTACHMENT 2 DocuSign Envelope ID: 25F0A63E-08D2-447B-96CB-28073DC6C759 2 IN WITNESS WHEREOF, the parties have caused this Amendment No. 1 to the Agreement to be executed on the dates reflected below each signature. CITY CITY OF TUSTIN A Municipal Corporation By:_____________________________________ AUSTIN LUMBARD Mayor DATE:__________________________________ EMPLOYEE By:_____________________________________ MATTHEW S. WEST Employee DATE:__________________________________ ATTEST: ________________________________________ ERICA N. YASUDA City Clerk APPROVED AS TO FORM: ________________________________________ DAVID E. KENDIG City Attorney DATE:_________________________________ DocuSign Envelope ID: 25F0A63E-08D2-447B-96CB-28073DC6C759 1 CITY OF TUSTIN AMENDMENT NO. 2 TO EMPLOYMENT AGREEMENT This Amendment No. 2 to the EMPLOYMENT AGREEMENT ("Amendment No. 2") is made effective as of November 15, 2022, and is entered into by and between the CITY OF TUSTIN, a California municipal corporation (the "City") and MATTHEW S. WEST, an individual ("Employee"). WHEREAS, the City and Employee entered into an Employment Agreement effective May 13, 2019; and WHEREAS, on January 18, 2022, City and Employee entered into an Amendment No. 1 to Employment Agreement. (The May 13, 2019 Employment Agreement and the January 18, 2022 Amendment No. 1 to Employment Agreement are referred to collectively herein as the “Amended Employment Agreement”); and WHEREAS, the parties desire to further amend the Amended Employment Agreement in order to add a paragraph in Section 2 as indicated below, to provide for an increase in Employee’s salary, and to adjust the City’s contribution to the the City Manager’s deferred compensation account. NOW, THEREFORE, it is mutually agreed by and between the City and Employee as follows: Section 1: Temporary Appointment The following paragraph shall be added to the end of Section 2 [Duties and Authority] of the Amended Employment Agreement: “Employee shall also temporarily serve as Acting City Treasurer, with no additional compensation for performing such duties, at any time during which the Director of Finance position is vacant and continuing until such time that the Director of Finance position is filled.” Section 2: Salary The following sentence shall be added to Section 4 of the Amended Employment Agreement [Salary], to read as follows: “Effective January 1, 2023, Employee’s annual base salary shall be increased to two hundred and seventy five thousand nine hundred and ninety five dollars and twenty cents ($275,995.20). ATTACHMENT 3 DocuSign Envelope ID: 25F0A63E-08D2-447B-96CB-28073DC6C759 2 Section 3: Deferred Compensation Effective January 1, 2023, Section 5.C. of the Amended Employment Agreement [Deferred Compensation] shall be amended to read in its entirety as follows: “C. Deferred Compensation “The City shall contribute to Employee’s 457(b) account fifty percent (50%) of the applicable annual limit for contributions to 457(b) plans (paid bi-weekly). In the event that Employee’s employment terminates for any reason during a calendar year, the City’s total collective contributions for that calendar year shall be the pro rata share of the applicable annual limit upon contributions to 457(b) plans based on the number of days Employee was employed by the City during that calendar year. Section 4: Other Terms and Conditions Except as expressly amended herein, all other terms and conditions of the Amended Employment Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the parties have caused this Amendment No. 2 to the Amended Employment Agreement to be executed on the dates reflected below each signature. “CITY” CITY OF TUSTIN A Municipal Corporation By:______________________________ Date:_______________________ AUSTIN LUMBARD Mayor “EMPLOYEE” By:______________________________ Date:_______________________ MATTHEW S. WEST DocuSign Envelope ID: 25F0A63E-08D2-447B-96CB-28073DC6C759