B0785-0301\2794542v1.doc 4/13/2023
AGENDA REPORT
Meeting Date: April 18, 2023
Item Number:
To: Honorable Mayor & City Council
From: Laurence S. Wiener, City Attorney
Subject: AMENDMENT NO. 2 TO THE EMPLOYMENT AGREEMENT
BETWEEN THE CITY OF BEVERLY HILLS AND HUMA AHMED
Attachment: 1. Amendment No. 2
INTRODUCTION
This Amendment will amend the Employment Agreement between City Clerk Huma Ahmed and the City of Beverly Hills made on June 4, 2019 and previously amended on April 20, 2021.
DISCUSSION
Because the City Clerk is not part of a “group or class of employment” under Government Code section 20636(e), CalPERS has greater latitude in determining what constitutes “compensation earnable” during the final compensation period. So, while the City’s retirement formula for CalPERS classic members is based on the highest year’s salary, CalPERS has the authority to examine the final three years of employment and restrict the increases of the City Clerk’s “compensation earnable” to that received by the most comparable group (i.e., the executive group).
The attached Amendment to Ms. Ahmed’s Employment Agreement increases her annual base salary from $185,400 to $220,000. This salary increase tempers the impact that Government Code section 20636(e) may have on her retirement benefits. Additionally, the modified salary places Ms. Ahmed’s salary on par with the salaries of other Department Head Executives, and reflects Ms. Ahmed’s skills, years of service to the City, and completion of the requirements for the Certified Municipal Clerk designation.
To mitigate the financial impact of the salary increase, the Amendment waives Ms.
Ahmed’s cost of living increase for 2023 and reduces Ms. Ahmed’s management incentive pay from $450 per month to $350 per month.
The Amendment also extends the term of the contract to March 31, 2028 so that the City can benefit from Ms. Ahmed’s institutional knowledge as she continues to lead the City E-9
Meeting Date: April 18, 2023
B0785-0301\2794542v1.doc
Clerk Department through significant reorganization. The Agreement still allows the City Council to terminate the Agreement at any time. In the event of termination without cause, the Amendment provides Ms. Ahmed with a six-month severance benefit, subject to her signing a release of claims against the City.
FISCAL IMPACT
This Amendment to the City Clerk’s Employment Agreement will increase her compensation by approximately $29,000 in the next fiscal year. The impact in this fiscal year can be absorbed within existing appropriations. In future years this impact will be addressed in the budget.
Laurence S. Wiener,
City Attorney
Approved By
B0785-0301\2794542v1.doc 4/13/2023
Attachment 1
B0785-0301\2794541v1.doc -1-
AMENDMENT NO. 2 TO THE EMPLOYMENT AGREEMENT
BETWEEN THE CITY OF BEVERLY HILLS AND HUMA AHMED
The Employment Agreement, made as of June 4, 2019, identified as Agreement No. 279-19, as amended by Amendment No. 1 (referred to in its entirety as the “Agreement”), between the City of Beverly Hills (“City”) and Huma Ahmed (“Employee”) is hereby amended by this Amendment No. 2 (“Amendment”), effective as of April 1, 2023.
A. On June 4, 2019, the City and Employee entered into the Agreement providing for employment of Employee as City Clerk from July 1, 2019 through June 30, 2022.
B. Amendment No. 1 extended the term of the Agreement to April 1, 2024.
C. Section 4.A(1) of the Agreement provides an annual base salary to Employee of one hundred fifty-five thousand dollars ($155,000).
D. Amendment No. 1 increased Employee’s annual base salary to one hundred eighty thousand dollars ($180,000), with an annual cost of living adjustment equal to 3% of Employee’s base salary.
E. Section 4.A(3) of the Agreement provides Management Incentive Pay to Employee in the amount of four hundred and fifty dollars ($450) per month.
F. Section 8.B(4) of the Agreement, which was added by Amendment No. 1, provides Employee with a severance benefit equivalent to four months of her then-current base salary, subject to the limitations set forth in Government Code section 53260, in the event the City terminates the Agreement without cause prior to the expiration of its term.
G. The City and Employee desire to amend the Agreement to reflect Employee’s skills, qualifications, and years of service to the City, and to place the City Clerk’s salary range on par with other Department Head Executives.
NOW, THEREFORE, the parties amend the Agreement as follows:
1. Section 8.A is amended to read:
“Term. Subject to earlier termination, as provided in this Agreement, this Agreement shall remain in full force and effect from July 1, 2019 to March 31, 2028.”
2. Section 4.A(1) is amended to read:
“Base Salary. Employer shall pay Employee a base salary of $220,000 (two hundred twenty thousand dollars) annually, subject to legally permissible or required withholding, prorated and paid on Employer’s normal paydays. Employee’s salary is compensation for all hours worked. Employee shall be exempt from the overtime pay provisions of California law (if any) and federal law.” DocuSign Envelope ID: 4932FCC7-C886-4AE0-9833-4410607AEDDA B0785-0301\2794541v1.doc -2-
3. Section 4.A(2) is amended to read:
“Salary Adjustment and Review. Beginning on July 1, 2024, Employee shall receive an annual cost of living adjustment equal to 3% of her then current base salary. Employer, by its City Council, will also conduct an annual salary review. The City Council may, but is not required to, consider or approve bonuses, incentives, merit increases, performance pay or other compensation enhancements in conjunction with the annual salary review. Employee will request and schedule such reviews, as appropriate, pursuant to City Council agenda procedures or as otherwise directed by the City Council. Performance pay, if any, shall be in an amount as determined by the City Council, up to and including 10% of the annual base salary, based on the level of completion of goals identified by the City Council.”
4. Section 4.A(3) is amended to read:
“Management Incentive Pay. Employee shall receive Management Incentive Pay (MIP) at the rate of $350 per month, prorated and paid on Employer’s normal paydays.”
5. Section 8.B(4) is amended to read:
“Termination Without Cause. In the event Employer terminates the Agreement without cause prior to March 31, 2028, and contingent on the parties’ execution of a separation and release agreement, Employee shall be entitled to a severance payment equivalent to six months of her then-current base salary, paid through payroll and subject to legally permissible or required withholding. The amount of severance will be reduced as necessary to comply with Government Code section 53260.”
6. Except as expressly amended by this Amendment, all of the provisions of the Agreement shall remain in full force and effect.
IN WITNESS WHEREOF, the parties have caused this Amendment to be signed and executed personally or on its behalf by its duly authorized representative.
EMPLOYEE
__________________________
HUMA AHMED
DocuSign Envelope ID: 4932FCC7-C886-4AE0-9833-4410607AEDDA B0785-0301\2794541v1.doc -3-
CITY
CITY OF BEVERLY HILLS,
A California Municipal Corporation
By: _______________________
JULIAN A. GOLD, M.D.
Mayor
ATTEST:
__________________________(Seal)
Michelle Ramos-Vergara
(for) City Clerk
APPROVED AS TO FORM:
__________________________
LAURENCE S. WIENER
City Attorney
DocuSign Envelope ID: 4932FCC7-C886-4AE0-9833-4410607AEDDA Certificate Of Completion
Envelope Id: 4932FCC7C8864AE098334410607AEDDA Status: Sent Subject: Please DocuSign: Amendment No. 2 to Employment Agreement of Huma Ahmed Source Envelope:
Document Pages: 3 Signatures: 2 Envelope Originator:
Certificate Pages: 2 Initials: 0 Shani Parker
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Time Zone: (UTC-08:00) Pacific Time (US & Canada)
455 N. Rexford Drive
Beverly Hills, CA 90210
[email protected]
IP Address: 208.87.233.201
Record Tracking
Status: Original
4/13/2023 12:15:54 PM
Holder: Shani Parker
[email protected]
Location: DocuSign
Signer Events Signature Timestamp
Laurence Wiener
[email protected]
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Huma Ahmed
[email protected]
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Cindy Owens
[email protected]
Policy & Management Analyst
City of Beverly Hills
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Julian A. Gold, M.D.
[email protected]
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Michelle Ramos-Vergara
[email protected]
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Shani Parker
[email protected]
City of Beverly Hills
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Sent: 4/13/2023 1:23:25 PM
Viewed: 4/13/2023 1:38:42 PM
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Jill Doohen
[email protected]
City of Beverly Hills
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Sent: 4/13/2023 1:23:27 PM
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Michelle Ramos-Vergara
[email protected]
City of Beverly Hills
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Sent: 4/13/2023 1:52:15 PM
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Michael Dunn
[email protected]
Records and Archives Manager
City of Beverly Hills
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Sent: 4/13/2023 1:52:16 PM
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