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HomeMy WebLinkAbout15 AMENDMENT NO. 2 TO EMPLOYMENT AGREEMENT WITH CITY MANAGER (Final 06 11 26)Docusign Envelope ID: 358C2907-8737-8327-823E-C74D6AE09DF2 MEETING DATE TO: FROM: SUBJECT: SUMMARY: Agenda Item 15 AGENDA REPORT Reviewed: City Manager Finance Director J U N E 16, 2026 HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL DAVID E. KENDIG, CITY ATTORNEY DERICK YASUDA, DIRECTOR OF HUMAN RESOURCES AMENDMENT NO. 2 TO EMPLOYMENT AGREEMENT WITH CITY MANAGER Approval of the attached Amendment will modify the Employment Agreement and compensation of the City Manager in accordance with City Council direction. RECOMMENDATION: Approve Amendment No. 2 to Employment Agreement with Aldo E. Schindler in the form attached hereto as Attachment 1. FISCAL IMPACT: The proposed Amendment would result in an additional cost to the City of approximately $29,189.56 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: 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. 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. Docusign Envelope ID: 358C2907-8737-8327-823E-C74D6AE09DF2 City Council Agenda Report Amendment No. 2 to Employment Agreement with City Manager June 16, 2026 Page 2 Accordingly, earlier this month, the City Council reviewed and evaluated the City Manager and negotiated to provide him with a total base salary increase. Therefore, the base salary for the City Manager will be increased to $354,286.40 annually (hourly rate of $170.33) effective June 8, 2026 (the start of the week that includes his anniversary date of June 10). Derick Yasuda Director of Human Resources Attachment: 1. Amendment No. 2 to Employment Agreement with Aldo E. Schindler Docusign Envelope ID: 358C2907-8737-8327-823E-C74D6AE09DF2 CITY OF TUSTIN AMENDMENT NO.2 TO EMPLOYMENT AGREEMENT This Amendment No. 2 to the EMPLOYMENT AGREEMENT ("Agreement") is made effective as of June 16, 2026, 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 entered into Amendment No. 1 to the Agreement effective June 9, 2025; and WHEREAS, following the City Council's evaluation of Employee's performance, the parties wish to further amend the Agreement; NOW, THEREFORE, it is mutually agreed by and between the City and Employee as follows: Section 1: Performance Evaluation Section 3 (Performance Evaluation) of the Agreement will be replaced with the following: The review and evaluation of Employee by City Council shall be completed in accordance with specific criteria developed jointly by the City Council and Employee. Such review shall include a written statement of the findings provided to Employee, and the adequate opportunity for Employee to discuss this evaluation with the City Council. Failure of the City Council to review and evaluate the performance of Employee pursuant to this section shall not affect the right of the City to terminate Employee's employment. Upon completion of each such review and evaluation process, the City Council shall consider additional increases to Employee's salary or performance incentives, which may be made effective retroactively to the anniversary date of this Agreement. Section 2: Salary A sentence shall be added to Section 4 of the Agreement (Salary), to read as follows: "Effective June 8, 2026, Employee's annual base salary shall be increased to $354,286.40 (hourly rate of 170.33)." 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. 4915-9593-9506, v. 1 Docusign Envelope ID: 358C2907-8737-8327-823E-C74D6AE09DF2 IN WITNESS WHEREOF, the parties have caused this Amendment No. 2 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: DAVID E. KENDIG City Attorney DATE: EMPLOYEE I0 DATE: ALDO E. SCHINDLER Employee 4915-9593-9506, v. 1