EXHIBIT A
EMPLOYMENT AGREEMENT FOR
CITY MANAGER
Resolution No. 24-3016
EMPLOYMENT AGREEMENT BETWEEN
THE CITY OF ARTESIA AND ABELARDO "ABEL" AVALOS
THIS EMPLOYMENT AGREEMENT (the "Agreement") is made and entered into effective September 9, 2024 between the CITY OF ARTESIA, a municipal corporation ("City") and Abelardo "Abel" Avalos ("Avalos") as follows:
WHEREAS, City desires to employ the services of Avalos as City Manager of City, as provided by the City Municipal Code, and
WHEREAS, it is the desire of the City Council of the City ("Council"), to provide certain benefits, establish certain conditions of employment and to set working conditions of Avalos, and WHEREAS, it is the desire of the Council to (1) secure and retain the services of Avalos and to provide inducement for him to remain in such employment, (2) to make possible full work productivity by assuring Avalos's morale and peace of mind with respect to future security, and (3) to provide a means of terminating Avalos's services if City may desire to terminate his employment; and
WHEREAS, Avalos desires to accept employment, on an at-will basis, as City Manager of City.
NOW, THEREFORE, in consideration of the mutual covenants herein contained, the parties agree as follows:
Section 1- Employment
City hereby agrees to employ Avalos as City Manager to perform the functions and duties specified in the City Municipal Code and the Government Code of the State of California, and Avalos agrees to accept such employment. Avalos shall perfoi'm the duties and responsibilities imposed by law, industry standards, and responsibilities and duties as specified in Exhibit "A," attached hereto and incorporated herein by reference and such legally permissible further duties and functions as shall, from time to time, be assigned by the Council.
Avalos shall devote the time necessary to adequately perform his duties as City Manager. The parties anticipate that Avalos will work a full-time schedule allocated between regular business hours and hours outside of regular business hours including, without limitation, attendance at regular and special City Council meetings. Toward that end, Avalos shall be at City Hall every day that it is open but with the allowed reasonable flexibility in setting his own office hours, provided the schedule of such hours provides a significant presence at City Hall. Avalos shall be reasonably available to the City Council, CITY staff, and members of the community for the performance of his duties and of CITY business. Avalos may perform work off site as appropriate Section 2 - Temi
The Agreement shall be effective as of September 9, 2024, however, Avalos's start date shall be October 8, 2024, as authorized by City Council (the "Start Date") and shall continue unless terminated by the parties as set forth in the Agreement.
Section 3 - Termination and Severance Pay
A. By Avalos
Page l City Manager
Resolution No 24-3016 Exhibit A
Avalos may terminate this Agreement upon giving at least 30 days' written notice of resignation to City, or sooner by mutual agreement. In the event that Avalos exercises his right to terminate this Agreement by giving at least 30 days' notice, or sooner by mutual agreement, Avalos will not be entitled to the severance benefits as set forth below in this Agreement or to any other similar termination benefits under law or City rules or regulations, provided however, that Avalos will be entitled to payment for work performed through his resignation date and accrued comprehensive leave, as set forth below, as well as any benefits required by applicable law. This Agreement shall automatically terminate upon Avalos's death, retirement, or permanent incapacity (a disability or medical condition which cannot be reasonably accornrnodated by City and upon completion of any other legally required process), which will effectively operate as a resignation.
B. By City
The Parties understand and agree that Avalos, in his capacity as City Manager is "at-will" and serves at the pleasure of the Council, subject to termination pursuant to the terms of the Agreement without cause, and with no right to any hearing or appeal, including any "Skelly conference," other than the rights expressly provided in the Agreement. The City may terminate this Agreement, and Avalos's employment either at-will or for cause, as set forth below, by a majority vote of the whole Council.
1. At-Will: City may terminate this Agreement, without cause and with or without notice. In the event that this Agreement is terminated without cause, Avalos shall be entitled to severance benefits under this Agreement, consistent with the requirements as set forth below in Section 3(C). Avalos may not be terminated under this provision for at-will termination by the City within ninety (90) days preceding or following a City General Municipal Election where one or more Council seats are contested on the ballot of such election (the "election cool-off period"). However, should Council determine by a majority vote of the whole Council to terminate Avalos at-will (without cause) during the election cool-off period, Avalos shall be entitled to the severance provided in Section 3(C) below, plus an additional three (3) months' severance, subject to the conditions for receiving severance set forth below.
2. For Cause Termination: City may terminate this Agreement "for cause," as defined below. Avalos will be provided a written notice explaining the "cause" of termination. Avalos will not be entitled to severance if his employment is terminated by City at any time for cause.
Cause for termination shall be defined for purposes of this Agreement as: (i) malfeasance, (ii) gross negligence, (iii) fraud, (iv) serious misconduct (substantiated through an independent investigation) which would constitute a violation of City policy, or state or federal law, (v) moral turpitude, or (vi) conviction of a felony on the part of Avalos. Conviction for purposes of this Agreement includes a judgment entered after a trial, plea of guilty or plea of nolo contendere.
C. Severance: In the event that Avalos's employment is terminated by Council without cause ("at-will"), during the term of this Agreement and while Avalos is willing and able to perform the duties of City Manager, Avalos shall be entitled to a lump sum cash settlement, equal to twelve (12) months of Avalos's base pay, which will be paid by the City.
Additionally, Avalos shall be eligible to participate in the Chief Executive Separation Payment (CESP) provided by the California Joint Powers Insurance Authority (CJPIA). As set forth above, in Section 3(B)(1), if Avalos is terminated during the election cool-off period, the amount of severance will be increased by three (3) months, for a total of fifteen (15) months' severance. The severance amount is calculated on base pay. Health benefits,
auto allowance and deferred compensation contribution will be continued, at the same level of City contribution provided Non-Represented Management level employees (and at the same coverage election as at the time of termination), for the same period as the severance or until Avalos begins other employment, whichever occurs first. To receive severance, Avalos must execute a Settlement Agreement and General Release satisfactory to the City.
In the event Avalos elects not to sign the Settlement Agreement and General Release, Avalos will not be entitled to severance pay. Pursuant to Governrnent Code section 53260, under no circumstances shall the maximum cash settlement provided to Avalos be greater than his monthly salary multiplied by the number of months left on the unexpired term of the Agreement, or an amount equal to his monthly salary multiplied by eighteen (18).
Avalos will not be entitled to severance if his employment is terminated by the Council at any time for cause, or if Avalos resigns, retires or cannot perform the essential functions of the position even with reasonable accommodations due to death, a medical condition or disability.
D. General Waiver and Release: The promise and tender of payment to Avalos, of any severance compensation payable herein, is in lieu of any damages which Avalos might claim arising out of the employment relationship (including the termination thereof) between the parties, including lost wages, breach of contract, express or implied, breach of covenant of good faith and fair dealing, emotional distress and anxiety, or any similar contractual and personal injury claims.
E. Abuse of Office: Pursuant to Oovernment Code section 53243, et seq., if Avalos is convicted of a crime involving an abuse of his office or position, as defined below, all of the following shall apply upon final conviction: (1) if City Manager is provided with administrative leave pay pending an investigation, Avalos shall be required to fully reimburse such amounts paid; (2) if City, in its discretion, pays for the criminal legal defense of City Manager, Avalos shall be required to fully reimburse such amounts paid; and (3) if this Agreement is terminated, any cash settlement related to the termination that Avalos may receive from City shall be fully reimbursed to City. For purposes of this Section, "abuse of office or position" means either: (1) an abuse of public authority, including waste, fraud, and violation of the law under color of authority as those crimes are specifically defined under specific provision of California statute, or (2) a crime against public justice, including a crime described in Title 7 commencing with section 92 of the Penal Code or as specifically defined under separate provision of California statute.
F. Avalos hereby expresses his intent to remain as City Manager for a period of not less than three (3) years from the date of execution of this Agreement. Avalos and Council agree that should Avalos be offered other employment, he shall provide written notice to the Council of his intent to accept the offer and provide Council the opportunity to meet with him to discuss the offer and other matters as might be desirable by either party. In the event Avalos voluntarily resigns his position with the City, Avalos shall give City a minimum of thirty (30) days' written notice in advance, as set forth above.
Section 4 - Salary
As of the Start Date, the City agrees to pay Avalos for his services rendered pursuant hereto an annual base salary of Two Hundred Fifty-Five Thousand Seven Hundred Thirty-One Dollars and Ninety Cents ($255,73 1.90), payable in installments at the same time as other employees of City
are paid. Following the first year of full employment, City will consider additional potential increases to Avalos's salary, up to five percent (5%), (including COLAs) based on performance, comparative salaries and the finances of the City. Avalos's compensation may not be reduced during the term of this Agreement, except that if the Council finds it necessary to reduce salaries of all Non-Represented Management level employees, Avalos's salary may be reduced by no more than the average salary reduction of Non-Represented Management level employees. A reduction of Avalos's salary by an amount in excess of this will be considered a termination of Avalos's employment without cause, unless Avalos specifically agrees to the modification in writing.
Section 5 - Benefits
Avalos shall receive the same fringe benefits provided to other Non-Represented Management level employees, as may be established and amended from time to time, unless specifically amended by this Agreement.
Section 6-Automobile/Telephone
The City agrees to provide a City cell phone with phone service to Avalos or a monthly city cell phone allowance at Avalos' option. At the termination of this Agreement, Avalos shall return the City cell phone with contacts and messages intact for continuity of City business.
The City also agrees that upon proof of insurance coverage in an amount acceptable to the City, the City shall provide Avalos with a Four Hundred Dollar ($400) monthly automobile allowance.
Avalos agrees to adhere to all laws, regulations, and City policies applicable to vehicles, driving, or traffic when operating his vehicle on City-related business.
Section 7 - Holidays Benefits
Avalos shall be entitled to the same holidays as other Non-Represented Management City employees.
Section 8 - Health, Disability and Life Insurance
A. City agrees to provide medical, dental and vision coverage for Avalos commensuratewith the standard Non-Represented Management level employee health benefits.
If Avalos has coverage from another family member, he may opt out of the City's medical, dental, and vision plans and receive a One Thousand Dollar ($1,000.00) per month stipend.
Avalos must show proof of coverage to receive the stipend.
B. City agrees to provide a Health Reimbursement Account contribution on behalf of Avalos commensurate with the standard Non-Represented Management level employee health benefits.
C. City agrees to provide Avalos short-ternn and long-term disability insurance coverage commensurate with the standard City employeeprogram.
D. City agrees to provide a term life insurance policy equal to a maximum of Three Hundred Thousand Dollars ($300,000.00).
Section 9 - Retirement
City agrees to execute all necessary agreements to enroll Avalos in the California Public Employees Retirement System ("CalPERS").
Avalos shall be responsible to pay from his salary One Hundred Percent (100%) of the EmployeePaid Member Contributions (EPMC) to CalPERS.
City shallberesponsibleto pay One Hundred Percent (100%) of the Employers' Contribution based on the "Classic" membership on behalf of Avalos.
The City contracts with CalPERS for retirement benefits. Avalos will be entitled to those benefits under the terms of the contract between the City and CalPERS. The applicable retirement formula will be determined by CalPERS after the City has enrolled Avalos into CalPERS. If Avalos is deemed a classic member, Avalos shall pay the normal member contribution in accordance with the City's policies. If Avalos is deemed a new member, Avalos shall pay any and all contributions required ofnew members under the provisions of the California Public Employees' Pension Reform Act of 2013. Avalos shall complete the "Member Reciprocal Self-Certification Form" and submit the form to the City within 10 business days after employment has commenced.
Avalos will be entitled to retiree health benefits that are provided to Non-Represented Management City employees, as memorialized in Resolution No. 22-2902, as may be amended from time to time.
Section 10 - Deferred Compensation
Avalos is entitled to participate in the City's deferred compensation program at the same rate as NonRepresented Management level employees. The City will contribute an additional Twelve Thousand Dollars ($12,000), to Avalos's deferred compensation account on an annual basis, spread over 24 equal payments; subject to any applicable limitations on contributions under Section 457(b) and 401(a) of the Internal Revenue Code.
Section 11- Vacation and Leave
Avalos shall have eighty (80) hours of vacation time upon his Start Date. He shall also begin accumulating vacation beginning on the Start Date at a rate of 6.67 hours per pay period, for a total of One-Hundred and Sixty (160) hours per year. Additionally, sick leave shall begin accumulating beginning on the Start Date. Sick leave shall accrue at the same rate as Non-Represented Management employees in the City. Annually, as of the first pay period in December, Avalos shall cash out, at the then-current rate of pay, any and all unused vacation hours that are accrued over the amount of three hundred and twenty (320) hours. The value of each hour shall be commensurate with the Non-Represented Management employee program. As an example, if Avalos's vacation bank has accrued to 360 hours as of the first pay period in December, he shall be required to cash out 40 hours of vacation time.
Annually, as of the first pay period in December, Avalos shall also cash out, at the then-current rate of pay, any and all unused sick leave hours that are accrued over the amount of three hundred and twenty (320) hours. The value of each hour shall be commensurate with the Non-Represented Management employee program. As an example, if Avalos's sick leave bank has accrued to 360 hours as of the first pay period in December, he shall be required to cash out 40 hours of sick leave time. Avalos will be provided eighty (80) hours of administrative leave each fiscal year.
Administrative leave may not be cashed out.
In the event that Avalos voluntarily leaves the employ of the City, or the City Council terminates Avalos's employment without cause, he shall receive in his final pay all accumulated but unused vacation and unused sick leave at the then-current rate of pay. Unused administrative leave is not compensable.
Section 12 - Dues and Subscriptions
City agrees to pay for the professional dues and subscriptions of Avalos necessary for his continuation and full participation in national, regional, state and local associations and organizations necessary and desirable for his continued professional participation, growth and advancement, and for the good of the City. Dues shall include but not be limited to the International City and County Management Association (ICMA), the California City Management Foundation (CCMF), and the California Association for Local Economic Development (CALED).
Section 13 - Professional Development
A. City hereby agrees to pay the travel, conference fees, and subsistence expenses of Avalos for professional and official travel, meetings and occasions adequate to continue the professional development of Avalos and to adequately pursue necessary official and other functions for City, including but not limited to, International City and County Management Association, California City Management Foundation and League of California Cites and other professional associations.
B. City also agrees to pay for the travel and subsistence expenses of Avalos for short courses, institutes and seminars that are necessary for his professional development and for the good of the City.
C. City recognizes that certain expenses of a non-personal and generally job-affiliated nature are incurred by Avalos, and hereby agrees to pay said general expenses subject to submission of written receipts and documentation of such expenses.
Section 14 - Performance Evaluation
A. The Council shall review and evaluate the performance of Avalos at the one-year anniversary of the Aru'iiversary Date and at least once annually thereafter. A full, formal review and evaluation shall be conducted each year on or before the anniversary date of the Anniversary Date. The Mayor of City shall provide Avalos with a summary written statement of the findings of the Council and provide an adequate opportunity for Avalos to discuss his evaluation with the Council. Said criteria may be modified as the Council may from time to time determine in consultation with Avalos.
B. Annually, the Council and Avalos shall define such goals and performance objectives which they determine necessary for the proper operation of the City, and in the attainment of the Council's policy objectives, said goals and objectives to be reduced to writing. They shall generally be attainable within the time limitations as specified and the annual operating and capital budgets and appropriations provided.
Section 15 - Indemnification
In accordance with and consistent with applicable law, City shall provide Avalos with indemnification from and against any and all claims, actions, or causes of action of any kind for
which Avalos may be held liable and which arise out of or relate to Avalos's performance of his job duties at City.
In addition, and in accordance with and consistent with applicable law, City shall defend, at City's expense and with counsel of City's choosing any action, claim, or proceeding in which Avalos is named and which alleges actions on the part of Avalos, or failures to act, within the scope of the above-referenced indemnity obligation.
Any funds provided for the legal criminal defense of Avalos, if such were authorized, shall be fully reimbursed to City if Avalos were convicted of a crime involving an abuse of his office orposition, in accordance with Government Code section 53243.1.
Section 16 - Bonding
City shall bear the full cost of any fidelity or other bonds required of Avalos, acting as City Manager of the City, under any law or ordinance.
Section 17 - Other Terms and Conditions of Employment
A. The Council, in consultation with Avalos, shall fix any such other terms and conditions of employment, as it may determine from time to time, relating to the performance of Avalos, provided such terms and conditions are not inconsistent with orin conflict with the provisions of the Agreement or State or Federal law.
B. All provisions of the City Municipal Code and regulations and rules of City relating to vacation and sick leave, retirement and pension system contributions, life insurance, holidays and other fringe benefits and working conditions as they now exist, or thereafter may be amended, which apply to Non-Represented Management employees, except as otherwise set forth herein, shall also apply to Avalos.
Section 18 -Notices
Notices pursuant to this Agreement shall be given by deposit in the custody of the United States Postal Service, postage prepaid and addressed as follows:
1. City City of Artesia
18747 Clarkdale Avenue
Artesia, CA 90701
Attn: Human Resources
2. Abelardo "Abel" Avalos Address on file
Alternatively, notices required pursuant to the Agreement may be personally served in the same manner as is applicable to civil judicial practice. Notice shall be deemed given as of the date of personal service or as of the date of deposit of such written notice in the course of transmission in the United States Postal Service.
Section 19 - General Provisions
A. The text herein shall constitute the entire Agreement between the parties.
B. The Agreement shall become effective as provided herein.
C. No provision of the Agreement may be modified, waived or discharged unless such waiver, modification or discharge is agreed to in writing by the City and Avalos.
D. The Agreement shall be binding upon, or shall inure to the benefit of, the respective heirs, executors, administrators, successors and assigns of the parties provided however, that Avalos may not assign Avalos's obligations hereunder.
E. This Agreement shall be governed by and construed in accordance with the laws of the State of California. Any legal proceeding which may be initiated by either party relating to this Agreement shall be brought in the courts of Los Angeles County, California or in the Central District of California.
F. If any provision, or any portion thereof, contained in this Agreement is held unconstitutional, invalid or unenforceable, the remainder of this Agreement, or portion thereof, shall be deemed severable, shall not be affected and shall remain in full force and effect.
G. Avalos acknowledges that he has had the opportunity to consult legal counsel in regard to this Agreement, that he has read and understands this Agreement, that he is fully aware of its legal effect, and that he has entered into it freely and voluntarily and based on his own judgment and not on any representations or promises other than those contained in the Agreement.
IN WITNESS WHEREOF, the City and Avalos have signed and executed the Agreement as of the day and year first above written.
CITY
Abelardo "Abel" Avalos
CITY OF ARTESIA
Tony Lima, Mayor
ATTEST: APPROVED AS TO FORM:
Jeru'iifer erete, City Clerk Best Best & Krieger LLP
City Attorney
EXHn3IT A
CITY OF ARTESIA
Job Title: City Manager Department: City Manager
Reports to: City Council
DEFINITION:
Under general policy direction of the City Council, plans, organizes, and provides administrative direction and oversight for all City functions and activities; provides policy guidance and program evaluation to the City Council and management staf'f; encourages and facilitates provision of services to City residents and businesses; fosters cooperative working relationships with State and local intergovernrnental and regulatory agencies and various public and private groups; pursues appropriate avenues of economic and community development; and performs related work as required.
The City Manager serves as the principal representative of the City of Artesia in initiating and facilitating open communications among all participants in the process of governrnent; works closely with the Mayor and Council members, while actively and openly assisting the City Council in the development of strategies and solutions to critical issues and assisting in the achievement of consensus toward maintaining a decisive and timely policy decision-making process.
DISTINGUISHING CHARACTERISTICS:
The City Manager serves as the Chief Executive Officer of the City, accountable to the City Council and responsible for enforcement of all City codes, ordinances, and regulations, the conduct of all financial activities, and the efficient and economical performance of the City's operations. The scope of responsibility, decision-making authority, supervision, and budgetary authority are significantly greater than for any other city classification.
SUPERVISION RECEIVED AND EXERCISED:
General policy direction is provided by the City Council. Responsibilities include management of department heads and other management staff.
ESSENTIAL FUNCTIONS
1. Commits to honoring the City of Artesia's Mission, Vision, Core Values and Commitments. E
2. Directs, guides, and approves the development and implementation of city-wide and departmental goals, objectives, programs, and services. E
3. Enforce and administer the provisions of state law and local ordinances; prepare recommendations and advise Council on matters requiring legislative action; and institute programs and policy changes as directed by the Council. E
4. Plans, oversees, and approves the preparation and administration of the city's long-term and annual budgets with the assistance of departmental directors and management staff. E
5. Selects, trains, motivates, evaluates, and terminates staf'f; prepares and presents employee performance evaluations; provides or coordinates staff training; works with employees to correct deficiencies; recornrnends and implements disciplinary procedures. E
6. Reviews and approves the implementation of changes in Personnel Rules and policies affecting city operations. E
7. Reviews and approves long-term plans for capital improvements and debt financing. E
8. Confers with department heads concerning administrative and operational issues and practices; conceives of strategic solutions to major administrative, political, and economic issues in concert with City Council and other parties. E
9. Keep the Council informed on all important matters relating to city affairs; prepares and presents reports of city finances and administrative accomplishments to the City Council. E
10. Serves as the Executive Director of the City's Successor Agency. E
11. Manages the City Council agenda process. E
12. Represents the City in a variety of meetings and public functions. E
13. Perform related duties as assigned.
Note: At the end of some of the duty statements there is an italicized E which identifies essential duties required of the classification. This is strictly for use in compliance with the Americans with Disabilities Act.
KNOWLEDGE, SKILLS & ABILITIES
Knowledge of:
* Public management theory and practices.
* state laws, rules, and regulations concerning the operation of municipal government. * Theories, principles and practices of modern organization and personnel management. * Public finance and budgeting practices. Effective public relations techniques. * Principles and practices applicable to the economic
development and revitalization of the economy of a local community. * California redevelopment law and its application.
* Use a variety of modern office equipment and current personal computer and software application.
Ability to:
* Prepare and organize data for professional reports and/or presentations using various research sources and modern software applications.
* Conduct data collection and analysis.
* Compute, interpret and compile statistics and other information. * Retain and apply City/Department policies and procedures conectly and consistently. * Communicate effectively orally and in writing.
* Adapt to shifting priorities and changing organizational work plans. * Maintain confidentiality and exercise sound judgment. * Conduct work in a safe manner in accordance with established practice. * Effectively respond to stressful situations.
* Establish and maintain effective working relations with others. * Exercise tact and diplomacy.
* Embrace and operationalize the organizational values. * Perform related duties as required.
Supervisory Skills:
* Ability to assign, review, plan, and coordinate the work of other employees. * Ability to provide instruction and guidance to staff. * Ability to approve the transfer, promotion, salary increase, discipline or discharge of staff, * Ability to assess the work of employees and write performance appraisals,
* Ability to promote staff development and motivation.
* Ability to oversee a program for orientation and training for all employees. * Ability to analyze problems that arise in the areas under supervision, recommend and implement solutions.
Judgment and Situational Reasoning Ability:
@ Ability to exercise independent judgment, decisiveness and creativity required in situations involving the direction, control and planning of multiple programs; and the ability to exercise judgment, decisiveness and creativity required in critical or unexpected situations involving moderate risk to the organization.
* Ability to predict and plan for future events impacting the organization, as well as the ability to make strategic and tactical decisions at the highest organizational levels; ability to analyze data and information, in order to determine consequences and to identify and select alternatives; ability to decide time, place and sequence of operations within an organizational framework, as well as the ability to oversee their execution; ability to develop new policies and modify existing policies, strategies and/or methods to meet unusual conditions within the context of existing management principles.
Language Ability and Interpersonal Communication:
* Ability to advise and interpret to others how to apply policies, procedures and standards to specific situations.
* Ability to utilize consulting data and advisory data and information, such as legal briefs, economic analysis and organizational analysis.
* Ability to communicate effectively with coworkers,
consultants, attorneys, elected and appointed officials, and the general public, both verbally and in writing.
* Ability to effectively make public presentations.
* Ability to manage and direct a group of workers.
* Ability to persuade, convince, sell and train others; ability to counsel and mediate. * Ability to keep abreast of any changes in policy, methods, operations, state and federal laws as they pertain to City operations and activities. * Ability to negotiate and engage in formal bargaining within the context of legal guidelines.
AMENDMENT NO. 1 TO EMPLOYMENT AGREEMENT
BETWEEN CITY OF ARTESIA AND ABELARDO “ABEL” AVALOS
The Employment Agreement between the City of Artesia (“City”), a California municipal corporation, and Abelardo “Abel” Avalos, an individual (“Avalos”), dated September 9, 2024 (“Agreement”), is hereby amended as provided in this Amendment No. 1 (“First Amendment”).
This First Amendment is made and entered into this 15 day of December, 2025 (“Effective Date”).
The above parties may be individually referred to as “Party” and collectively referred to as the “Parties.”
RECITALS
A. The Parties entered into an Employment Agreement (“Agreement”) dated September 9, 2024, in order to memorialize the terms of Avalos’s employment as City Manager; B. In November 2025, the City Council completed a performance evaluation of Avalos. This evaluation concluded with a positive assessment of Avalos’s performance and contributions to the organizational objectives of the City; C. Section 4 of the Agreement authorizes the City to consider potential increases to Avalos’s salary based on performance, comparative salaries, and the City’s finances; D. The Parties now desire to amend the Agreement in order to implement terms to increase Avalos’s salary by a five percent (5%) based upon his positive performance evaluation; and
E. This First Amendment is authorized pursuant to Section 19 of the Agreement.
NOW, THEREFORE, in consideration of the respective and mutual covenants hereinafter contained and made, and subject to all the terms and conditions hereof, the Parties agree as follows:
TERMS
1. Recitals and Incorporation of Prior Agreements: The Recitals set forth above are true and correct and are made a part of this First Amendment. The Agreement is incorporated herein by reference and attached hereto as Attachment “1.”
2. Employment: Section 4 is hereby amended to read as follows (additions made in underline and deletions made in strikethrough):
“Section 4 – Salary
As of the Start Date, tThe City agrees to pay Avalos for his services rendered pursuant hereto an annual base salary of Two Hundred Fifty-Five Thousand Seven Hundred Thirty-One Dollars and Ninety Cents ($255,731.90) Two Hundred SixtyEight Thousand Six Hundred Seventy-Eight Dollars and Thirty-Three Cents ($268,678.33), payable in installments at the same time as other employees of City are paid. Following the anniversary of his hire each year, the first year of full employment, City maywill consider additional potential increases to Avalos's salary, up to five percent (5%), (including COLAs) based on performance, comparative salaries and the finances of the City. Avalos's compensation may not be reduced during the term of this Agreement, except that if the Council finds it necessary to reduce salaries of all Non-Represented Management level employees, Avalos's salary may be reduced by no more than the average salary reduction of Non-Represented Management level employees. A reduction of Avalos's salary by an amount in excess of this will be considered a termination of Avalos's employment without cause, unless Avalos specifically agrees to the modification in writing.”
3. Remaining Provisions: Except as otherwise expressly provided herein, the remaining provisions of the Agreement shall continue in full force and effect.
IN WITNESS WHEREOF, the Parties have executed this Amendment No. 1 as of the Effective Date first written above.
CITY OF ARTESIA CITY MANAGER
_____________________ _____________________
Rene Trevino Abelardo “Abel” Avalos
Mayor City Manager
ATTEST:
_______________________
Jennifer Alderete
City Clerk
APPROVED AS TO FORM:
_______________________
Best Best & Krieger LLP
City Attorney
ATTACHMENT “1”
EMPLOYMENT AGREEMENT DATED SEPTEMBER 9, 2024
RESOLUTION NO. 25-3071
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ARTESIA, CALIFORNIA, APPROVING AND ADOPTING A CITYWIDE SALARY SCHEDULE AS REQUIRED BY THE CALIFORNIA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM
(CALPERS) FOR, RESPECTIVELY, UNREPRESENTED
MANAGEMENT EMPLOYEES, EMPLOYEES OF THE
MANAGERS AND SUPERVISORS UNIT, AND EMPLOYEES OF
THE GENERAL UNIT
THE CITY COUNCIL OF THE CITY OF ARTESIA, CALIFORNIA DOES HEREBY RESOLVE:
WHEREAS, the California Public Employees’ Retirement System requires by regulation, that the City Council approve and adopt a salary schedule for every employee position; and WHEREAS, such salary schedule shall be available for public review; WHEREAS, posting of the salary schedule may be satisfied by listing on the employer’s website; and
WHEREAS, a two-cent rounding error was discovered in the City Manager salary schedule which is being corrected by this revision and no other positions were affected.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARTESIA DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:
SECTION 1. The Salary Schedule for the Unrepresented Management, Managers and Supervisors Unit, and General Unit effective July 1, 2025 (Exhibit A) shall be posted on the City website.
SECTION 2. The Salary Schedule shall be retained and available for public inspection for not less than five years.
PASSED, APPROVED, AND ADOPTED this 9th day of June, 2025. ________________________
RENE TREVINO, MAYOR
ATTEST:
_________________________________
JENNIFER ALDERETE, CITY CLERK
APPROVED TO FORM:
_________________________________
BEST BEST & KRIEGER, CITY ATTORNEY
Resolution No. 25-3051
City of Artesia Full-Time Allocated Classifications A B C D E F Annual $ 237,472.44 $ 243,409.32 $ 249,494.52 $ 255,731.88 $ 262,125.24 $ 268,678.32 Monthly $ 19,789.37 $ 20,284.11 $ 20,791.21 $ 21,310.99 $ 21,843.77 $ 22,389.86 Bi-Weekly $ 9,133.56 $ 9,361.90 $ 9,595.94 $ 9,835.84 $ 10,081.74 $ 10,333.78 Hourly $ 114.17 $ 117.02 $ 119.95 $ 122.95 $ 126.02 $ 129.17 Annual $ 173,426.76 $ 182,098.08 $ 191,202.96 $ 200,763.12 $ 210,801.24 $ 221,341.32 Monthly $ 14,452.23 $ 15,174.84 $ 15,933.58 $ 16,730.26 $ 17,566.77 $ 18,445.11 Bi-Weekly $ 6,670.26 $ 7,003.77 $ 7,353.96 $ 7,721.66 $ 8,107.74 $ 8,513.13 Hourly $ 83.38 $ 87.55 $ 91.92 $ 96.52 $ 101.35 $ 106.41 Annual $ 157,660.68 $ 165,543.72 $ 173,820.84 $ 182,511.96 $ 191,637.48 $ 201,219.36 Monthly $ 13,138.39 $ 13,795.31 $ 14,485.07 $ 15,209.33 $ 15,969.79 $ 16,768.28 Bi-Weekly $ 6,063.87 $ 6,367.07 $ 6,685.42 $ 7,019.69 $ 7,370.67 $ 7,739.21 Hourly $ 75.80 $ 79.59 $ 83.57 $ 87.75 $ 92.13 $ 96.74
Finance Manager Annual $ 143,327.88 $ 150,494.28 $ 158,019.00 $ 165,919.92 $ 174,215.88 $ 182,926.68 Human Resources Manager Monthly $ 11,943.99 $ 12,541.19 $ 13,168.25 $ 13,826.66 $ 14,517.99 $ 15,243.89 Bi-Weekly $ 5,512.61 $ 5,788.24 $ 6,077.65 $ 6,381.54 $ 6,700.61 $ 7,035.64 Hourly $ 68.91 $ 72.35 $ 75.97 $ 79.77 $ 83.76 $ 87.95
Economic Development Manager Annual $ 130,298.04 $ 136,812.96 $ 143,653.56 $ 150,836.28 $ 158,378.16 $ 166,296.96 Parks and Recreation Manager Monthly $ 10,858.17 $ 11,401.08 $ 11,971.13 $ 12,569.69 $ 13,198.18 $ 13,858.08 Public Works Manager Bi-Weekly $ 5,011.46 $ 5,262.04 $ 5,525.14 $ 5,801.40 $ 6,091.47 $ 6,396.04 Hourly $ 62.64 $ 65.78 $ 69.06 $ 72.52 $ 76.14 $ 79.95
City Clerk Annual $ 118,452.84 $ 124,375.44 $ 130,594.20 $ 137,123.88 $ 143,980.08 $ 151,179.12 Accounting Manager Monthly $ 9,871.07 $ 10,364.62 $ 10,882.85 $ 11,426.99 $ 11,998.34 $ 12,598.26 Planning Manager Bi-Weekly $ 4,555.88 $ 4,783.67 $ 5,022.85 $ 5,274.00 $ 5,537.70 $ 5,814.58 Hourly $ 56.95 $ 59.80 $ 62.79 $ 65.92 $ 69.22 $ 72.68
Annual $107,684.40 $113,068.56 $118,722.00 $124,658.04 $130,890.96 $137,435.52 Monthly $8,973.70 $9,422.38 $9,893.50 $10,388.17 $10,907.58 $11,452.96 Bi-Weekly $4,141.71 $4,348.79 $4,566.23 $4,794.54 $5,034.27 $5,285.98 Hourly $51.77 $54.36 $57.08 $59.93 $62.93 $66.07
Senior Accountant Annual $100,282.56 $102,789.60 $107,929.08 $113,325.48 $118,991.76 $124,941.36 Assistant Parks and Recreation Manager Monthly $8,356.88 $8,565.80 $8,994.09 $9,443.79 $9,915.98 $10,411.78 Bi-Weekly $3,857.02 $3,953.45 $4,151.12 $4,358.67 $4,576.61 $4,805.44 Hourly $48.21 $49.42 $51.89 $54.48 $57.21 $60.07
Executive Assistant Annual $88,995.36 $93,445.08 $98,117.40 $103,023.24 $108,174.36 $113,583.12 Management Analyst Monthly $7,416.28 $7,787.09 $8,176.45 $8,585.27 $9,014.53 $9,465.26 Human Resources Analyst** Bi-Weekly $3,422.90 $3,594.04 $3,773.75 $3,962.43 $4,160.55 $4,368.58 Hourly $42.79 $44.93 $47.17 $49.53 $52.01 $54.61
Parks and Recreation Supervisor Annual $82,878.12 $84,950.04 $89,197.56 $93,657.48 $98,340.36 $103,257.36 Code Compliance Supervisor Monthly $6,906.51 $7,079.17 $7,433.13 $7,804.79 $8,195.03 $8,604.78 Maintenance Supervisor** Bi-Weekly $3,187.62 $3,267.31 $3,430.68 $3,602.21 $3,782.32 $3,971.44 Business License Specialist/Revenue Officer Hourly $39.85 $40.84 $42.88 $45.03 $47.28 $49.64 Assistant Planner Annual $73,549.80 $77,227.32 $81,088.68 $85,143.12 $89,400.36 $93,870.36 Administrative Analyst Monthly $6,129.15 $6,435.61 $6,757.39 $7,095.26 $7,450.03 $7,822.53 Lead Maintenance Specialist Bi-Weekly $2,828.84 $2,970.28 $3,118.80 $3,274.74 $3,438.48 $3,610.40 Hourly $35.36 $37.13 $38.98 $40.93 $42.98 $45.13
Code Compliance Officer Annual $66,863.52 $70,206.72 $73,716.96 $77,402.88 $81,273.00 $85,336.68 Recreation Program Coordinator Monthly $5,571.96 $5,850.56 $6,143.08 $6,450.24 $6,772.75 $7,111.39 Accounting Technician II Bi-Weekly $2,571.67 $2,700.26 $2,835.27 $2,977.03 $3,125.88 $3,282.18 Maintenance Specialist I Hourly $32.15 $33.75 $35.44 $37.21 $39.07 $41.03 Annual $60,785.04 $63,824.28 $67,015.44 $70,366.20 $73,884.60 $77,578.80 Monthly $5,065.42 $5,318.69 $5,584.62 $5,863.85 $6,157.05 $6,464.90 Bi-Weekly $2,337.89 $2,454.78 $2,577.52 $2,706.39 $2,841.72 $2,983.80 Hourly $29.22 $30.68 $32.22 $33.83 $35.52 $37.30
Annual $55,259.04 $58,022.04 $60,923.16 $63,969.36 $67,167.72 $70,526.16 Monthly $4,604.92 $4,835.17 $5,076.93 $5,330.78 $5,597.31 $5,877.18 Bi-Weekly $2,125.35 $2,231.62 $2,343.20 $2,460.36 $2,583.37 $2,712.54 Hourly $26.57 $27.90 $29.29 $30.75 $32.29 $33.91
Annual $50,235.60 $52,747.32 $55,384.68 $58,153.92 $61,061.64 $64,114.68 Monthly $4,186.30 $4,395.61 $4,615.39 $4,846.16 $5,088.47 $5,342.89 Bi-Weekly $1,932.14 $2,028.74 $2,130.18 $2,236.69 $2,348.52 $2,465.95 Hourly $24.15 $25.36 $26.63 $27.96 $29.36 $30.82
Administrative Assistant Annual $45,668.64 $47,952.12 $50,349.72 $52,867.20 $55,510.56 $58,286.04 Recreation Specialist Monthly $3,805.72 $3,996.01 $4,195.81 $4,405.60 $4,625.88 $4,857.17 Bi-Weekly $175649 $184431 $193653 $203335 $213502 $224177 Special Projects Manager
R7
CITY OF ARTESIA PROPOSED SALARY TABLE
SIX STEP RANGE
Fiscal Year 2025-26
Contracted City Manager
R1 Deputy City Manager
R2 Community Development Director
R3
R4
R5
R6
Maintenance Worker II
R13 No Current Classification Assigned
R14 Planning Clerk**
R15
R12
R11
R10
R8
R9
EXHIBIT “A”
SALARY SCHEDULE EFFECTIVE JULY 1, 2025
CITY COUNCIL AGENDA REPORT
MEETING DATE: December 15, 2025 ITEM NO: 11B.
TO: Mayor and Members of the City Council
SUBJECT: Business License Tax CPI Adjustment for Calendar Year 2026 FROM: Jamie Murguia, Finance Manager
REVIEWED AND APPROVED BY:
Melissa Burke, Deputy City Manager
HongDao Nguyen, City Attorney
Abel Avalos, City Manager
RECOMMENDATION:
It is recommended that the City Council discuss and provide direction to Staff regarding the CPI adjustment for the Business License Tax rates outlined in Title 3 (Finance), Chapter 1 (Business Licenses and Business License Taxes), Article 6 (Business License Tax Amounts) of the Artesia Municipal Code (AMC) for Calendar Year 2026.
BACKGROUND:
As prescribed by § 3-1.615 (Annual Adjustment) of the AMC, each year, all business license taxes shall be increased annually by the percentage change from the October 1st through September 30th of the Consumer Price Index (CPI) for all urban consumers in the Los Angeles, Riverside and Orange County areas, or successor index, as published by the United States Government Bureau of Labor Statistics (BLS). Annually, Staff prepares these adjustments and provides the new rates to HdL in preparation for the renewal of business licenses, which is to occur in January of each year.
ANALYSIS:
Due to the federal government shutdown from October 1, 2025 through November 12, 2025, the BLS experienced a lapse in appropriations, resulting in the non-collection of the October 2025 reference period survey data. Because data was not collected, the CPI report (along with all other data for October) was not released by the BLS. Staff has been monitoring news releases from the BLS to determine if data will be released at a later time. The most recent update from the BLS, released on December 9, 2025, shared that the BLS was still evaluating which series will meet publication criteria for October, but the BLS expects the number of publishable indexes to be small. Any data for October that is publishable will be released by the BLS on December 18, 2025, in conjunction with the November data.
Because Staff has not had the data required by the AMC to perform the CPI adjustments, renewal notices have been put on hold to ensure that businesses do not renew at an incorrect rate, avoiding future issues such as refunds needing to be issued or additional invoices for payment needing to be sent out. Businesses will have an additional 30 days to renew their business license from the original due date of January 1, 2026, making the new due date February 1, 2026. Penalties for late payments will not be enforced until 30 days following the new due date.
Staff is seeking Council direction on the CPI adjustment for Business License Tax amounts in the case the necessary data is not released by BLS on December 18, 2025. Options for the Council's consideration include:
1. Send out the renewal notices with no change, using the same tax rates established for Calendar Year 2025.
2. Send out the renewal notices using the same rate of CPI change as Calendar Year 2025, increasing tax rates
2.99% over the 2025 rates.
For context, the CPI adjustment has fluctuated over the last several years. In the years following the COVID pandemic, CPI was considerably higher due to the impact the pandemic had on the economy. That post-pandemic surge in inflation has lessened, as evidenced by the CPI adjustments below. 2025 - 2.99%
2024 - 2.38%
2023 - 7.48%
2022 - 5.36%
If the BLS publishes the necessary data on December 18, 2025, then Staff will default to the process outlined in the AMC, and will adjust the Business License Tax rates accordingly.
FISCAL IMPACT:
Business License Tax revenue for Fiscal Year 2024-2025 was budgeted at $800,000. Actual revenue totaled $1,024,268. The City did ramp up compliance efforts in Calendar Year 2025, implementing Code Compliance sweeps and continued outreach by Staff, which likely had an impact on the increased revenue due to collecting prior year's business license taxes. With a 99.5% compliance rate on renewals for Calendar Year 2025, Staff does not anticipate proposing a mid-year budget adjustment for Fiscal Year 2025-26, as nearly all businesses are in compliance with their license and additional past due business license tax revenue is not expected. Business License Tax revenue for the current Fiscal Year is budgeted at $810,000. With either Option outlined in the Analysis above, Staff does not anticipate the City would receive less than the amount currently budgeted for Fiscal Year 2025-26.
RECOMMENDED COUNCIL ACTION:
It is recommended that the City Council discuss and provide direction to Staff regarding the CPI adjustment for the Business License Tax rates outlined in Title 3 (Finance), Chapter 1 (Business Licenses and Business License Taxes), Article 6 (Business License Tax Amounts) of the Artesia Municipal Code (AMC) for Calendar Year 2026.