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Agenda Item 18.

City Council Meeting

Meeting Date:	03/20/2018
FROM:	Jim Markman

Subject:

City Manager Employment Agreement Amendment No. 1 – Adoption of Resolution No. 2018-012

RECOMMENDATION

Adopt Resolution No. 2018-012 approving Amendment No. 1 to the City Manager’s Employment Agreement.

BACKGROUND/DISCUSSION

On July 21, 2015, the City Council promoted William Gallardo to the position of City Manager and approved a three-year employment agreement. The City Council most recently conducted a review of the terms of the current agreement on March 6, 2018. Following the meeting, the City Attorney prepared an amendment to the City Manager’s employment agreement as follows:

Five-Year Term Extension. The contract currently is set to expire on June 30, 2018. The proposed amendment will change the expiration date to June 30, 2023.

New Procedure for Salary Adjustment Waiver. The contract currently requires that the City Manager’s monthly base salary automatically be adjusted so that it is at least 10% greater than the base salary of any other City employee. The proposed amendment will establish a procedure by which the City Manager may waive such an automatic salary adjustment.

Establishment of Guidelines for City-Provided Automobile. The contract currently requires that the City Manager be supplied with a City Council-approved automobile for his exclusive and unrestricted use. The proposed amendment will establish guidelines for the replacement of the City-provided automobile. Specifically, the guidelines will require that automobile replacement shall be in accordance with the annual Council approved budget for equipment and vehicle replacement, and that any replacement automobile shall satisfy both of the following criteria; (i) has similar equipment and operating specifications as the current City-provided automobile; and (ii) does not have equipment that is only commonly found in public safety vehicles.

FISCAL IMPACT/SUMMARY

The proposed amendment will not change the City Manager’s current salary, which was last increased July 2, 2016 pursuant to the automatic adjustment provision of the employment agreement.

In consideration of the current financial challenges facing the City of Brea, on December 11, 2017 the City Manager waived a 3.2% salary increase that was due to him pursuant to the same automatic provision.

RESPECTFULLY SUBMITTED:

Prepared by: Terence Boga, Deputy City Attorney
Concurrence: James Markman, City Attorney

Attachments
Resolution and Amendment #1