SECOND AMENDMENT TO THE CITY OF FORTUNA FINANCE DIRECTOR
EMPLOYMENT AGREEMENT FOR PROFESSIONAL SERVICES
THIS SECOND AMENDMENT (this “Amendment”) is made effective as of July 1, 2024 (“Amendment Effective Date”), by and between the CITY OF FORTUNA, California (hereinafter "City"), and AARON FELMLEE (hereinafter "Employee") each of whom understand and agree as follows:
WITNESSETH
WHEREAS, pursuant to that written City of Fortuna Finance Director Employment Agreement for Professional Services Employer effective February 20, 2022 (the “Agreement”), City retained the services of Employee to perform the duties of the Finance Director; and WEREAS, by way of this Amendment, it is the desire of the parties to amend certain provisions of the Agreement as set forth below.
NOW, THEREFORE, in consideration of the mutual covenants herein contained, the parties hereto agree as follows:
1. Amendment of the Agreement. Section 2 (Term) of the Agreement is hereby replaced in its entirety with the following text:
A. Employee agrees to remain in the exclusive employ of Employer until June 30, 2027 (“Termination Date”), and neither to accept other employment nor to become employed by any other employer until said termination date, unless said termination date is affected as hereinafter provided. Employee may engage in outside consultation with the prior and continuing approval of the City Manager and to the extent that such outside consultation does not interfere with the duties and responsibilities set forth in this Employment Agreement. It is specifically understood and agreed that any outside consultation is to be secondary to this employment by the City of Fortuna and shall not conflict or interfere in any way with the full-time nature of this City employment.
B. The term of this agreement may be extended by mutual agreement of the parties in a signed writing.
C. Nothing in this agreement shall prevent, limit or otherwise interfere with the right of the Council to terminate the services of Employee at any time, subject only to the provisions set forth in Section 3, paragraphs A, B and C, of this Agreement.
D. Nothing in this agreement shall prevent, limit, or otherwise interfere with the right of the Employee to resign at any time from his position with Employer, subject only to the provision set forth in Section 3 of this Agreement.
2. Amendment of the Agreement. Section 4 (Compensation) of the Agreement is hereby replaced in its entirety with the following text:
A. CITY agrees to pay EMPLOYEE for his services rendered pursuant hereto an annual, base salary of $126,700, payable in installments at the same time as other employees of CITY are paid. Pursuant to CITY personnel policies and procedures, EMPLOYEE will be reviewed and evaluated annually following the EMPLOYEE’S anniversary date of hire, and annually thereafter.
B. In addition, CITY agrees to increase said salary in increments of 3 percent per year each July 1 provided that the EMPLOYEE has performed in a satisfactory manner during the previous annual review period, as determined by the City Manager, and will also be eligible for longevity pay.
Except as hereinafter provided, EMPLOYEE shall receive such other and further benefits as are accorded other management employees of CITY, including, but not limited to, vacation, holidays, sick and bereavement leaves, and executive leave days.
3. Amendment of the Agreement. The following paragraph will be added as sub-section “E" to Section 9 (Other Terms and Conditions of Employment) of the Agreement:
E. Vacation Pay. Notwithstanding anything in the Agreement to the contrary, Employee shall accrue 160 hours (four weeks) of vacation leave per fiscal year. Employee shall accrue and utilize vacation leave in the same manner as other unrepresented employees of Employer.
2. No Further Modification; Conflict. Except as set forth in this Amendment, all of the terms and provisions of the Agreement shall remain unmodified and in full force and effect. In the event of any conflict between the terms, covenants and conditions of the Agreement, and the terms, covenants and conditions of this Amendment, the terms, covenants and conditions of this Amendment shall govern and control.
SIGNATURE PAGE FOLLOWS THIS PAGE
IN WITNESS WHEREOF, the parties have executed this Amendment as of the date first written above.
THE CITY OF FORTUNA
By:
Name: Merritt Perry Date
Title: City Manager
EMPLOYEE
By:
Name: Aaron Felmlee Date
Title: Finance Director