CITY OF LAGUNA NIGUEL
CITY CouNcIL AGENDA ITEM
To: Honorable Mayor and Council Members
FROM: Justin J. Martin, Deputy City Manager
DATE: August 16, 2022
SUBJECT: Second Amendment to the City Manager Employment Agreement
RECOMMENDATION
Staff recommends that the City Council adopt Resolution No. 2022-1405, approving the Second Amendment to the City Manager Employment Agreement with Tamara S.
Letourneau.
BACKGROUND
On July 16, 2019, at the City Council regular meeting, the City Council adopted Resolution No. 2019-1295, appointing Tamara S. Letourneau to the position of City Manager effective August 12, 2019. Since that time, City Manager Letourneau has successfully directed and managed City operations. Upon completion of her first year of service, the City Council completed her evaluation. However, in consideration of the pandemic, the City Council and City Manager Letourneau did not consider adjustments to her contract at that time. On September 7, 2021, upon completion of her second year of service, the City Council approved the first amendment to the City Manager Employment Agreement.
The City Council concluded the current annual evaluation of City Manager Letourneau on (Attachment A) details the changes to the City Manager Employment Agreement and adoption would approve those changes.
ANALYSIS
Under City Manager Letourneau's leadership during the evaluation period, the City has accomplished many achievements. While not an exhaustive list, these achievements include:
• Public Safety:
• Expanded neighborhood watch programs city-wide;
Implemented an award-winning e-bike education and enforcement program; and,
Provided additional emergency education and outreach programs. • Fiscal:
• Secured over $7.2 million in grant funds in FY 21-22 for various projects, throughout the City;
Presented a balanced operating and capital improvement budget for FY 22- 23; and,
Received a clean fiscal year audit and ACFR award.
• Open Space & Environmental:
• Completed the Parks & Recreation Needs Assessment;
• Produced new trail maps;
• Hosted trail events and began a trail signage enhancement project. • Infrastructure & Technology:
• Implemented Smart Cities Solutions - electric vehicle charging stations, fleet management software, restructured GIS management into the information technology function for GIS enhancement city-wide; Implemented paperless signature software program saving hundreds of hours of staff time processing paper documents; and,
• Installed new phone system with enhanced technology to increase efficiency and service to the public.
• Economic & Community Development:
• Entitlements approved for the Laguna Niguel City Center project; • Next phase of the General Plan update process completed - all baseline studies; and,
• Implemented new economic development website.
• Communication & Community Outreach:
• Enhanced the City's social media presence on all social media platforms; • Held two HOA Outreach Educations meetings; developed a dedicated HOA webpage on the City's website;
Implemented a Laserfiche records management program;
Established the City's Homeless Engagement & Logistics (HELP) Team resulting in 12 individuals moving from the streets to permanent and/or temporary housing in 2021 and in the first quarter of 2022 - 2 individuals entered permanent housing and 8 individuals entered temporary housing or institutional care.
Given these accomplishments, the City Council has provided direction to amend the City Manager Employment Agreement. The Second Amendment to the Agreement includes provisions that reflect the Council's direction, and which are based on performance over the prior year. Those provisions are as follows:
• A 3.5% salary adjustment, from $257,400 per year to $266,400 per year, effective August 12, 2022.
• A one-time, non-PERSable bonus of $10,000.
• A change in the annual 457 retirement contribution, from $11,500 to $13,500. • A one-time gasoline stipend of $2, 100.
All items listed above would be effective to City Manager Letourneau's anniversary date with the City on August 12, 2022. It is important to note that City Manager Letourneau is a PEPRA employee under CaPERS, and as such, none of these items listed will affect the amount of her pensionable compensation under CaPERS.
ALTERNATIVES CONSIDERED
The City Council may consider not to approve Resolution No. 2022-1405. However, this alternative is not recommended, as this Second Amendment is the result of negotiated adjustments to the Agreement.
FISCAL REVIEW
The total cost for fiscal year 2022/2023 of this contract amendment is approximately $21,733. The adopted budget has sufficient appropriated funds to carry out the terms of this contract amendment.
LEGAL REVIEW
The City Attorney's Office has reviewed this staff report and resolution and has approved them as to form.
CONCLUSION
Staff recommends that the City Council adopt Resolution No. 2022-1405, approving the Second Amendment to the City Manager Employment Agreement with Tamara S Letourneau.
Quata Matt Rache State
Nicholas Ghirelli
Interim City Attorney
Deputy City Mänager
Eric Hendrickson
Finance Director
Attachments:
A. Resolution No. 2022-1405, Approving the Second Amendment to the City Manager Employment Agreement with Tamara S. Letourneau
ATTACHMENT A
Resolution No. 2022-1405, Approving the Second Amendment to the City Manager Employment Agreement with Tamara S. Letourneau RESOLUTION NO. 2022-1405
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF LAGUNA NIGUEL, CALIFORNIA,
APPROVING THE SECOND AMENDMENT TO THE CITY
MANAGER EMPLOYMENT AGREEMENT WITH
TAMARA S. LETOURNEAU
WHEREAS, at the City Council regular meeting on July 16, 2019, the Council adopted Resolution 2019-1295, appointing Tamara S. Letourneau to the position of City Manager effective August 12, 2019, approving an Employment Agreement in connection therewith, and fixing the compensation of the City Manager; and WHEREAS, at the City Council regular meeting on September 7, 2021, based upon the City Manager's annual performance evaluation, the Council adopted Resolution 2021-1368, approving the first amendment to the City Manager Employment Agreement; and
WHEREAS, on August 2, 2022, the City Council concluded the City Manager's annual performance evaluation; and
WHEREAS, Government Code Section 36506 provides that the City Council shall fix the compensation of all appointive offices and employees by ordinance or resolution; WHEREAS, the City Council desires to further amend the City Manager Employment Agreement to implement a salary adjustment, provide for a one-time bonus, increase the City's annual 457 retirement contribution, and provide a one-time gas stipend.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LAGUNA NIGUEL AS FOLLOWS:
SECTION 1. The City Council approves the Second Amendment to the Employment Agreement between the City of Laguna Niguel and Tamara S. Letourneau, attached hereto as Exhibit A, effective August 16, 2022.
SECTION 2. The salary rate for the position of City Manager shall be $22,200 per month, effective August 12, 2022. The City's Salary Schedule is amended accordingly and the Salary Schedule is duly approved and adopted by the City Council.
SECTION 3. The Mayor is authorized to execute the Second Amendment to the Employment Agreement between the City of Laguna Niguel and Tamara S. Letourneau.
PASSED, APPROVED AND ADOPTED this 16th day of August, 2022.
Elaine Gennawey, Mayor
ATTEST:
Marissa J. Asistin, City Clerk
Exhibit A: Second Amendment to Employment Agreement between City of Laguna Niguel and Tamara S. Letourneau
Exhibit A
Second Amendment to Employment Agreement
City Manager - City of Laguna Niguel
SECOND AMENDMENT TO EMPLOYMENT AGREEMENT
CITY MANAGER - CITY OF LAGUNA NIGUEL
This Second Amendment ("Second Amendment") is entered into this 16" day of August, 2022, and is an amendment to the original Employment Agreement that was made and entered into as of the 16th day of July 2019, by and between the City of Laguna Niguel, a municipal corporation (the "City"), and Tamara S. Letourneau ("Letourneau") (individual "Party, and collectively the "Parties") (the "Agreement"), as amended by the First Amendment approved on the 7th day of September 2021.
RECITALS
A. On July 16, 2019, the City and Letourneau entered into the Agreement for Letourneau to serve as the City Manager.
Un September 1, 2021, the First Amendment to the City Manager Employment Agreement was approved by the City Council.
C. On August 12, 2022, the City Council completed Letourneau's annual performance evaluation and the Parties now desire to make certain adjustments in the Agreement.
D. This Second Amendment is intended to provide for adjustments in Letourneau's salary and benefits, and to memorialize prior interpretations of the Agreement.
E. This Second Amendment was approved by the City Council at its regular meeting on August 16, 2022.
AGREEMENT
NOW, THEREFORE, in consideration of the mutual covenants contained herein, the Parties agree to amend the Agreement as follows:
1. Section 6.1 of the Agreement is amended to read as follows:
6.1 City agrees to pay Letourneau an annual base salary of $266,400 payable in equal installments at the same time and in the same manner that other City employees are paid.
This salary shall be effective as of August 12, 2022.
2. Section 7.2 of the Agreement permits the City to grant Letourneau with a one-time, lump sum performance bonus. The City has decided to grant Letourneau with a bonus of $10,000, reflective of performance over the prior year.
Section 7.4 of the Agreement is amended to read as follows:
City shall pay, on behalf of Letourneau, $13,500 per year to the MissionSquare Retirement, formerly known as ICMA RC, 457 Deferred Compensation Plan during the term of this Agreement. Payment shall be made in equal amounts each pay period. The City shall take all steps necessary to provide for Letourneau's participation in said Plan. -1-
13018-001212700770v2.doc
Section 7.15 of the Agreement is added to read as follows:
7.15 City agrees to provide Letourneau with a one-time gasoline stipend of $2,100.
5. Except as revised by this Second Amendment, all other provisions of the Agreement shall remain in full force and effect.
IN WITNESS WHEREOF, the Parties have executed this Second Amendment to the Agreement as of the date first herein written above.
CITY OF LAGUNA NIGUEL
By:
Elaine Gennawey
Mayor
ATTEST:
Marissa J. Asistin
City Clerk
APPROVED AS TO FORM BY THE
CITY ATTORNEY FOR THE
CITY OF LAGUNA NIGUEL
Nicholas Ghirelli
Interim City Attorney
By:
Tamara S. Letourneau
City Manager
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