CITY OF LAGUNA NIGUEL
CITY COUNCIL AGENDA ITEM
To: Honorable Mayor and Council Members
FROM: Trevor Agrelius, Finance Director
DATE: August 15, 2023
SUBJECT: Third Amendment to the City Manager Employment Agreement
RECOMMENDATION
Staff recommends that the City Council adopt Resolution No. 2023-1448, approving the Third 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 COVID19 global pandemic, the City Council and City Manager Letourneau did not consider adjustments to her contract at that time. Upon completion of her second year of service, the City Council approved the first amendment to the City Manager Employment Agreement on September 7, 2021. After completion of her third year of service, the City Council approved the second amendment to the City Manager Employment Agreement on August 16, 2022.
The City Council conducted the current annual evaluation of City Manager Letourneau on August 1, 2023. The City Council gave direction to make proposed amendments to provisions of the City Manager Employment Agreement. Resolution No. 2023-1448 (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; 13 new neighborhood watch programs were created last year;
Increased public safety social media followers and implemented the use of Nixle as a community communication tool during emergencies; and, Implemented pilot program to put cameras on trails.
• Fiscal:
• Secured over $1.4 million in grants for various Citywide projects; • Presented a balanced operating and capital improvement budget for FY 23- 24, including a budget surplus of $0.5 million;
• Received a clean fiscal year audit and ACR award, resulting in a year-end surplus of $2.1 million; and,
• Updated Field Use and Aquatic fees, Development Services Fees, and Credit Card processing convenience fees.
• Open Space & Environmental:
• Completed inventory of trails;
• Completed RFP process for the 10-year trail and open space maintenance plan;
• Won the Outstanding Project Award from the American Society of Civil Engineers for the Salt Creek Wetland Mitigation Project. • Infrastructure & Technology:
• Completed the City Council Chamber Technology Upgrades project; • Upgraded the fiber connection from Crown Valley Community Center to City Hall to increase speed and connectivity;
• Implemented a public outdoor wireless system at the Crown Valley Amphitheater and park; and,
Enhanced roadway infrastructure at Niguel Hills Middle School to increase student safety. The City received the Outstanding Project Award from the American Society of Civil Engineers in relation to this project. • Economic & Community Development:
• Completed Phase I of the General Plan Update and started Phase !; • The City became a member of California Association for Local Economic Development; and,
• Assisted all residents impacted by the Coastal Fire with rebuilding efforts. • Communication & Community Outreach:
• Enhanced the City's social media presence on all social media platforms.
As of December 31, 2022, the City's Facebook page ranks #3 out of 20 cities with a population under 70,000.
• Continued to hold HOA Outreach Educations meetings, welcoming over 300 attendees in Fiscal Year 2022-23;
• Implemented monthly Chief's Brief and featured business videos; and, Nixel used to alert the public during emergency situations. Nixel subscribers increased to 1,139.
Given these accomplishments, the City Council has provided direction to amend the City Manager Employment Agreement. The Third Amendment to the Agreement includes provisions that reflect the Council's direction, and which are based on performance over the past year. Those provisions are as follows:
• A 3.5% salary adjustment increase (as was provided to all employees on July 1, 2023) and a 3.0% merit increase, from $266,400 per year to $283,992 per year, effective August 12, 2023.
• A change in the annual 457 retirement contribution, from $13,500 to $16,500.
Further, the language to Paragraph 2 of Section 7.7 of the City Manager's Employment Agreement will be amended. The current provision permits City Manager Letourneau to be paid in-lieu of using accrued vacation of no more than 60 hours per year. The 60-hour limit was in accordance with previous IRS limits, however the maximum hours permitted by the IRS is now 65 hours. The proposed updated language would match the IRS rules, and will allow that provision to stay up to date into the future.
All items listed above would be effective to City Manager Letourneau's anniversary date with the City on August 12, 2023. 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. 2023-1448. However, this alternative is not recommended, as this Third Amendment is the result of negotiated adjustments to the Agreement.
FISCAL REVIEW
The total cost for fiscal year 2023/2024 of this contract amendment is approximately $28,562. 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. 2023-1448, approving the Third Amendment to the City Manager Employment Agreement with Tamara S.
Letourneau.
Tw An Late Ki
Trevor Agrelius Scott C. Smith
Finance Director City Attorney
Attachments:
A. Resolution No. 2023-1448, Approving the Third Amendment to the City Manager Employment Agreement with Tamara S. Letourneau
ATTACHMENT A
Resolution No. 2023-1448, Approving the Third Amendment to the City Manager Employment Agreement with Tamara S. Letourneau
RESOLUTION NO. 2023-1448
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF LAGUNA NIGUEL, CALIFORNIA,
APPROVING THE THIRD 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, at the City Council regular meeting on August 16, 2022, based upon the City Manager's annual performance evaluation, the Council adopted Resolution 2022- 1405, approving the second amendment to the City Manager Employment Agreement; and
WHEREAS, on August 1, 2023, 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; and
WHEREAS, the City Council desires to further amend the City Manager Employment Agreement to implement a salary adjustment, a merit increase, increase the City's annual 457 retirement contribution, and adjust the maximum amount that can be paid in-lieu of using accrued vacation.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LAGUNA NIGUEL AS FOLLOWS:
SECTION 1. The City Council approves the Third Amendment to the Employment Agreement between the City of Laguna Niguel and Tamara S. Letourneau, attached hereto as Exhibit A, effective August 15, 2023.
SECTION 2. The salary rate for the position of City Manager shall be $23,666 per month, effective August 12, 2023. 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 Third Amendment to the Employment Agreement between the City of Laguna Niguel and Tamara S. Letourneau.
Resolution No. 2023-1448 Page 2
PASSED, APPROVED AND ADOPTED this 15th day of August, 2023.
Kelly Jennings, Mayor
ATTEST:
Marissa J. Asistin, City Clerk
Exhibit A: Third Amendment to Employment Agreement between City of Laguna Niguel and Tamara S. Letourneau
Exhibit A
Third Amendment to Employment Agreement
City Manager - City of Laguna Niguel
THIRD AMENDMENT TO EMPLOYMENT AGREEMENT
CITY MANAGER - CITY OF LAGUNA NIGUEL
This Third Amendment ("Third Amendment") is entered into this 15' day of August, 2023, "Parties")(the "Agreement"), as amended by the Second Amendment approved on the 16th day of August 2022.
RECITALS
On July 16, 2019, the City and Letourneau entered into the Agreement for Letourneau to serve as the City Manager.
B. On September 7, 2021, the First Amendment to the City Manager Employment Agreement was approved by the City Council.
C. On August 16, 2022, the Second Amendment to the City Manager Employment Agreement was approved by the City Council.
On August 1, 2023, the City Council completed Letourneau's annual performance evaluation and the Parties now desire to make certain adjustments in the Agreement.
This Third Amendment is intended to provide for adjustments in Letourneau's salary and benefits, and to memorialize prior interpretations of the Agreement.
F. This Third Amendment was approved by the City Council at its regular meeting on August 15, 2023.
AGREEMENT
NOW, THEREFORE, in consideration of the mutual covenants contained herein, the Parties agree to amend the Agreement as follows:
Section 6.1 of the Agreement is amended to read as follows:
6.1 City agrees to pay Letourneau an annual base salary of $283,992 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, 2023.
Section 7.4 of the Agreement is amended to read as follows:
City shall pay, on behalf of Letourneau, $16,500 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 7.7 of the Agreement is amended to read as follows:
7.7 Letourneau may cash out accrued vacation time annually in accordance with the IRS regulations; provided, however, that Letourneau shall have taken at least an equal number of hours paid vacation leave within the year.
Except as revised by this Third Amendment, all other provisions of the Agreement shall remain in full force and effect.
IN WITNESS WHEREOF, the Parties have executed this Third Amendment to the Agreement as of the date first herein written above.
CITY OF LAGUNA NIGUEL
By:
Kelly Jennings
Mayor
ATTEST:
Marissa J. Asistin
City Clerk
APPROVED AS TO FORM BY THE
CITY ATTORNEY FOR THE
CITY OF LAGUNA NIGUEL
Scott C. Smith
City Attorney
By:
Tamara S. Letourneau
City Manager
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