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HomeMy WebLinkAbout17 AMENDMENT NO. 1 TO EMPLOYMENT AGREEMENT WITH CITY MANAGERDocusign Envelope ID: 40401183-034E-4EA7-85A0-B59714CF19A8 MEETING DATE TO: FROM: SUBJECT: SUMMARY: Agenda Item 17 Reviewed: AGENDA REPORTCity Maa City Manager Fl,ifial `Ls Finance Director SEPTEMBER 16, 2025 HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL DAVID E. KENDIG, CITY ATTORNEY DERICK YASUDA, DIRECTOR OF HUMAN RESOURCES AMENDMENT NO. 1 TO EMPLOYMENT AGREEMENT WITH CITY MANAGER Approval of the attached Amendment will modify the compensation of the City Manager in accordance with City Council direction. RECOMMENDATION: Approve Amendment No. 1 to Employment Agreement with Aldo E. Schindler. FISCAL IMPACT: The proposed Amendment would result in an additional cost to the City of approximately $33,511 per year. CORRELATION TO THE STRATEGIC PLAN: This item correlates to Goal E (Organizational Excellence and Customer Service) by retaining talented staff to ensure the City is a high performance organization, with effective customer service provided by a professional workforce. BACKGROUND AND DISCUSSION: The City Council appointed Aldo E. Schindler as City Manager on May 7, 2024, with an effective date of June 10, 2024. The Employment Agreement has not been modified since that time. Unlike other employees, there is no salary range for the City Manager, only one established pay rate, and the employee's compensation only changes when his Employment Agreement is amended with the mutual agreement of the employee and the City Council. Therefore, the compensation of the City Manager has not changed since he was appointed over one year ago. Docusign Envelope ID: 40401183-034E-4EA7-85A0-B59714CF19A8 City Council Agenda Report Amendment No. 1 to Employment Agreement with City Manager September 16, 2025 Page 2 Pursuant to the City Manager's Employment Agreement, the City Council must review and evaluate the performance of the City Manager at least once each year and, upon completion of such review and evaluation process, shall consider increases to the City Manager's compensation which may be made retroactive to the anniversary date of the Agreement. Accordingly, in July and August 2025, the City Council reviewed and evaluated the City Manager and negotiated to provide him with a total base salary increase of 10% (reflecting an increase of 4% for cost of living and a 6% increase based on job performance), effective retroactively on the anniversary date of his Employment Agreement. Therefore, the base salary for City Manager shall be increased to $328,036 annually (hourly rate of $157.71) effective June 9, 2025 (the start of the pay period that includes his anniversary date of June 10). There are no other changes to the City Manager's Employment Agreement. Dericl Yasuda Director of Human Resources Attachment: 1. Amendment No. 1 to Employment Agreement with Aldo E. Schindler Docusign Envelope ID: 40401183-034E-4EA7-85A0-B59714CF19A8 CITY OF TUSTIN AMENDMENT NO. 1 TO EMPLOYMENT AGREEMENT This Amendment No. 1 to the EMPLOYMENT AGREEMENT ("Agreement") is made effective as of June 9, 2025, and is entered into by and between the CITY OF TUSTIN, a California municipal corporation (the "City") and Aldo E. Schindler, an individual ('Employee"). WHEREAS, the City and Employee entered into the Agreement effective June 10, 2024; and WHEREAS, the parties desire to amend the Agreement in order to provide for an increase in Employee's salary. 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 June 9, 2025, Employee's annual base salary shall be increased to $328,036.80 (hourly rate of $157.71)." Section 2: Other Terms and Conditions Except as expressly amended herein, all other terms and conditions of the Agreement shall remain in full force and effect. 1 Docusign Envelope ID: 40401183-034E-4EA7-85A0-B59714CF19A8 IN WITNESS WHEREOF, the parties have caused this Amendment No. I to the Agreement to be executed on the dates reflected below each signature. CITY CITY OF TUSTIN A Municipal Corporation AUSTIN LUMBARD Mayor DATE: ATTEST: ERICA N. YASUDA City Clerk APPROVED AS TO FORM: [— DocuSigned by: DA PKKFIV L/1G City Attorney DATE: 09/10/25 2 EMPLOYEE I0 DATE: ALDO E. SCHINDLER Employee