HomeMy WebLinkAboutItem 3a - Second Amendment to City Manager Employment Agreement
DATE: May 1, 2018
TO: Honorable Mayor and City Council
FROM: Stephen P. Deitsch, City Attorney
SUBJECT: SECOND AMENDMENT TO CITY MANAGER EMPLOYMENT
AGREEMENT
Recommendation: Approve
SUMMARY
The City Attorney brings forward for City Council consideration and approval a Second
Amendment to City Manager Employment Agreement. The Second Amendment
provides that effective April 1, 2018, the City Manager’s compensation will increase
equivalent to that increase approved by the City Council for all other full-time City
employees on March 20, 2018. This follows the City Manager’s evaluation conducted
by the City Council in Closed Session on April 17, 2018.
It is recommended the City Council approve the Second Amendment to Mr. Lazzaretto’s
Employment Agreement to include cost of living adjustments of 2% effective on April 1,
2018, and again on April 1, 2019. In addition, the Second Amendment includes an
increase in medical benefits equal to what was provided to executive managers.
DISCUSSION
Pursuant to the City Manager Employment Agreement, the City Manager’s performance
is reviewed annually by the City Council. Based on the recently conducted evaluation,
the City Council directed that the City Attorney prepare the proposed Second
Amendment to the City Manager Employment Agreement in order to increase the City
Manager’s compensation. The increase matches that recently approved by the City
Council for Executive Management employees and represented labor groups on March
20, 2018, as described below.
Year One: 2.0% cost of living adjustment to salary and $100 increase to medical
benefit allowance to keep pace with increasing costs of health care premiums.
The first year’s increase will begin on April 1, 2018, and continue through March
31, 2019.
Second Amendment to City Manager Employment Agreement
May 1, 2018
Page 2 of 2
2
Year Two: 2.0% cost of living adjustment to salary. The second year’s increase
will begin on April 1, 2019, and continue through the end of the Agreement.
Pursuant to the Brown Act, any amendment to the City Manager Employment
Agreement containing an increase in compensation is required to be considered and
approved in open session under “new business” at a City Council meeting.
FISCAL IMPACT
The salary and benefit adjustment provided under this Second Amendment to
Employment Agreement is estimated to increase the total City budget by $18,272 over
the next two fiscal years, or an average of $9,136 annually, including all retirement
costs associated with the salary increase. Sufficient revenue is expected to be
available to fund these costs.
RECOMMENDATION
It is recommended that the City Council approve, and authorize and direct the Mayor to
execute, a Second Amendment to Employment Agreement with City Manager Dominic
Lazzaretto.
Attachment: Proposed Second Amendment to City Manager
Employment Agreement
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SECOND AMENDMENT TO EMPLOYMENT AGREEMENT
This Second Amendment to Employment Agreement (the "Second Amendment") is made
this 1st day of May, 2018, and by and between the City of Arcadia (“City”) and Dominic
Lazzaretto (“Manager”), parties to the Employment Agreement dated March 26, 2012, as
amended by the First Amendment to Employment Agreement dated April 1, 2014 (the
"Agreement").
RECITALS
A. City and Manager have met to perform the annual performance evaluation
referenced in Section 6 of the Agreement and wish to amend certain terms and conditions
of the Agreement.
B. Section 6(c) of the Agreement provides for adjustments in Base Salary and/or
benefits of Manager upon completion of the annual performance evaluation.
C. City and Manager wish to extend the term of the Agreement and provide for Base
Salary adjustments similar to those provided to all City employees during the recent labor
negotiations process and have determined that such extension and adjustments are to
the mutual benefit of City and Manager.
AMENDMENTS
In consideration of the mutual promises, covenants, guaranties, and conditions contained
herein and for other good and valuable consideration, the City and Manager agree to the
terms and conditions set forth in this Second Amendment.
1. The following shall be appended to Section 3 (Base Salary) of the Agreement:
“Commencing on April 1, 2018, City agrees to increase Manager’s Base Salary in
the amount of Two Percent (2.00%) to the sum of Two Hundred Twenty Six
Thousand Six Hundred Seventy One Dollars and Fifty Four Cents ($226,671.54)
per year, or Eighteen Thousand Eight Hundred Eighty Nine Dollars and Thirty
Cents ($18,889.30) per month, exclusive of benefits. Commencing on April 1,
2019, City agrees to increase Manager’s Base Salary in the amount of Two
Percent (2.00%) to the sum of Two Hundred Thirty One Thousand Two Hundred
Four Dollars and Ninety Seven Cents ($231,204.97) per year, or Nineteen
Thousand Two Hundred Sixty Seven Dollars and Eight Cents ($19,267.08) per
month.”
2. Section 11 (Effective Date and Term) is amended to read in full as follows:
“The Effective Date of this Agreement shall be March 26, 2012. Subject to City’s
right to terminate Manager’s employment at any time, the Term of this Agreement
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is eight (8) years from the Effective Date, and shall automatically renew itself for
successive twelve (12) month periods unless City notifies Manager of its intent to
terminate this Agreement at least twelve (12) months prior to the end of its eight
(8) year Term or any successive twelve (12) month Term.”
3. Upon the effective date of this Second Amendment, Manager shall receive a one-
time cash payment of Three Hundred Forty Eight Dollars and Seventy-Three Cents
($348.73) in lieu of providing Manager with a retroactive Base Salary adjustment
equal to that amount previously received by all other City employees on April 1,
2018. Such one-time payment shall be subject to taxation and reported similar to
any other Salary payments received by Manager.
4. Except as set forth in this Second Amendment, the Agreement is unaffected and
shall continue in full force and effect in accordance with its terms. If there is any
conflict between this Second Amendment and the Agreement, the terms of this
Second Amendment will prevail.
IN WITNESS WHEREOF, the Parties hereto have executed this Second
Amendment to Employment Agreement, which shall be effective as of May 1, 2018.
CITY:
_______________________________
Mayor of the City of Arcadia
Date:___________________________
CITY MANAGER:
_______________________________
Dominic Lazzaretto
Date:___________________________
ATTEST:
_______________________________
City Clerk
City of Arcadia
APPROVED AS TO FORM:
_______________________________
Stephen P. Deitsch
City Attorney