To:
CITY OF LAGUNA NIGUEL
CITY COUNCIL AGENDA ITEM
FROM:
Honorable Mayor and Council Members
Justin J. Martin, Assistant City Manager
August 19, 2025 DATE:
SUBJECT: Amendment to the City Manager Employment Agreement
RECOMMENDATION
Staff recommends that the City Council adopt Resolution No. 2025-1509, approving the Fifth Amendment to the City Manager Employment Agreement with Tamara S.
Letourneau.
BACKGROUND
On July 16, 2019, 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 COVID-19 global 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.
• On August 16, 2022, upon completion of her third year of service, the City Council approved the second amendment to the City Manager Employment Agreement. • On August 15, 2023, upon completion of her fourth year of service, the City Council approved the third amendment to the City Manager Employment Agreement. • On August 6, 2024, upon completion of her fifth year of service, the City Council approved the fourth amendment to the City Manager Employment Agreement.
The City Council conducted the current annual evaluation of City Manager Letourneau on August 5, 2025. The City Council gave direction to make proposed amendments to provisions of the City Manager Employment Agreement. Resolution No. 2025-1509 (Attachment A) details the changes to the City Manager Employment Agreement, and adoption would approve those changes.
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ANALYSIS
Under City Manager Letourneau's leadership during the evaluation period, the City has accomplished many achievements. These achievements are included in Attachment 8, Fiscal Year 2024-25 Accomplishments.
Given these accomplishments, the City Council has provided direction to amend the City Manager Employment Agreement. The Fifth 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 3.0% salary adjustment increase, from $307,128 per year to $316,344 per year, effective August 12, 2025.
• A one-time lump sum performance bonus of $15,000.
• A change in the annual 457 retirement contribution, from $16,500 to $24,000.
All items listed above would be effective on City Manager Letourneau's anniversary date with the City on August 12, 2025. It is important to note that City Manager Letourneau is a PEPRA employee under CalPERS, and as such, none of these items listed will affect the amount of her pensionable compensation under CalPERS.
ALTERNATIVES CONSIDERED
The City Council may consider not to approve Resolution No. 2025-1509. However, this alternative is not recommended, as the Fifth Amendment is the result of negotiated adjustments to the Agreement.
FISCAL REVIEW
The total cost for Fiscal Year 2025-26 of this contract amendment is approximately $29,745. 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. 2025-1509, approving the Fifth Amendment to the City Manager Employment Agreement with Tamara S.
Letourneau.
Attachments :
Scott C. Smith
City Attorney
A. Resolution No. 2025-1509, Approving the Fifth Amendment to the City Manager Employment Agreement with Tamara S. Letourneau
B. Fiscal Year 2024-25 Accomplishments
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ATTACHMENT A
Resolution No. 2025-1509 Approving the Fifth Amendment to the City Manager Employment Agreement with Tamara S. Letourneau
RESOLUTION NO. 2025-1509
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF LAGUNA NIGUEL, CALIFORNIA,
APPROVING THE FIFTH 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, at the City Council regular meeting on August 15, 2023, based upon the City Manager's annual performance evaluation, the Council adopted Resolution 2023- 1448, approving the Third Amendment to the City Manager Employment Agreement; and WHEREAS, at the City Council regular meeting on August 6, 2024, based upon the City Manager's annual performance evaluation, the Council adopted Resolution 2024- 1488, approving the Fourth Amendment to the City Manager Employment Agreement; and
WHEREAS, on August 5, 2025, 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, provide for a one-time lump sum bonus, and increase the City's annual 457 retirement contribution as authorized under the City Manager Employment Agreement.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LAGUNA NIGUEL AS FOLLOWS:
SECTION 1. The City Council approves the Fifth Amendment to the Employment Agreement between the City of Laguna Niguel and Tamara S. Letourneau, attached hereto as Exhibit A, effective August 19, 2025.
SECTION 2. The salary rate for the position of City Manager shall be $26,362 per month, effective August 12, 2025. The City's Salary Schedule is amended accordingly, and the Salary Schedule is duly approved and adopted by the City Council.
SECTION 3. The City Council hereby grants a one-time, lump sum performance bonus in the amount of $15,000 to the City Manager reflective of her performance over the last year.
SECTION 4. The City Council hereby amends the annual 457 retirement contribution to $24,000 annually for the City Manager.
SECTION 5. The Mayor is authorized to execute the Fifth Amendment to the Employment Agreement between the City of Laguna Niguel and Tamara S. Letourneau.
PASSED, APPROVED AND ADOPTED this 19th day of August, 2025.
Ray Gennawey, Mayor
ATTEST:
Marissa J. Asistin, City Clerk
Exhibit A: Fifth Amendment to Employment Agreement between City of Laguna Niguel and Tamara S. Letourneau
Exhibit A
Fifth Amendment to Employment Agreement
City Manager - City of Laguna Niguel
FIFTH AMENDMENT TO EMPLOYMENT AGREEMENT
CITY MANAGER- CITY OF LAGUNA NIGUEL
This Fifth Amendment ("Fifth Amendment") is entered into this 19th day of August, 2025, 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 most recently by the Fourth Amendment approved on the 6th day of August 2024.
RECITALS
A. 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.
D. On August 15, 2023, the Third Amendment to the City Manager Employment Agreement was approved by the City Council.
E. On August 6, 2024, the Fourth Amendment to the City Manager Employment Agreement was approved by the City Council.
F. On August 5, 2025, the City Council completed Letourneau's annual performance evaluation, and the Parties now desire to make certain adjustments in the Agreement.
G. This Fifth Amendment is intended to provide for an adjustment to Letourneau's salary and to memorialize the award of a performance bonus authorized under the Agreement.
H. This Fifth Amendment was approved by th~ City Council at its regular meeting on August 19, 2025.
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 $316,344, 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, 2025.
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 $15,000 for her performance over the last year.
3. Section 7.4 of the Agreement is amended to read as follows :
7.4 City shall pay, on behalf of Letourneau $24,000 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.
4. Except as revised by this Fifth Amendment, all other provisions of the Agreement shall remain in full force and effect.
IN WITNESS WHEREOF, the Parties have executed this Fifth Amendment to the Agreement as of the date first herein written above.
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
-2-
CITY OF LAGUNA NIGUEL
By: ----------
Ray Gennawey
Mayor
By ~~~
Tamara S. Letourneau
City Manager
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ATTACHMENT B
Fiscal Year 2024-25 Accomplishments
ATTACHMENT A
FY 23-24 Accomplishments
Strategic Plan Goal 1: Public Safety
Continue enhancing public safety education throughout the community
Continue enhancing neighborhood watch
Public Safety Technology Enhancements
Continue implementation of the Business Enhancement
Team
Complete & Ongoing
• Enhanced Laguna Niguel Police Services on social
media platforms to increase awareness in the
community.
• Continued educating the public regarding police services (e.g. ebikes, You Are Not Alone Program, safety
information through the monthly Chiefs Brief etc .. )
Complete & Ongoing
• Continued the implementation of Neighborhood Watch
meetings in both multi-family and single-family
neighborhoods through small group meetings, block
captain meetings and community-wide safety meetings.
• Seven new neighborhood watch groups were formed.
• Continued outreach efforts to the HOA's.
Complete & Ongoing
• Continued implementation of the Flock cameras and the trail camera program. Increased the use of Flock
cameras in coordination with HOA's to enhance
effectiveness.
Complete & Ongoing
• The Business Enhancement Team educates business
owners on security, safety implementation plans and
educations regarding crime prevention and reporting.
• The Team has completed the outreach to all of the
businesses in the community and now the ongoing
relationship building will continue to provide businesses with ongoing safety information
Strategic Plan Goal 2: Fiscal
Produce a clean audit for FY 23-24
Present a balanced budget & the city's first biennial budget for FY 25-27
Continue implementation of organizational efficiencies that save both money and staff resources
Awards
Complete
• Provided a "clean" financial audit for FY 23-24 with no audit findings.
• Ended the fiscal year with $2.2 million surplus.
• Received a clean audit for the Senior Wheels program. (Laguna Niguel was the only City to receive a clean
audit).
Complete
• Prepared the City's first 2 year budget.
• Presented a balanced budget to the City Council on May 13th and it is scheduled for adoption on June 3, 2025.
Complete & Ongoing
• Increased the number of credit card payments to
vendors to reduce the cost of printing actual checks,
which increases our efficiency and helps to decrease the risk of fraud.
• Renegotiation of the Recreation Management Software
contract for recreation program sign ups resulted in a
$25,000 annual savings to the City.
Complete
• Obtained the award for our Annual Comprehensive
Financial Award from the Government Finance Officers
Association.
• For the first time in the history of the City, Laguna Niguel won the Government Finance Officers
Association Budget Award for the FY 23-24 Operating
& Capital Improvement Budget.
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Strategic Plan Goal 3: Open Space & Environmental Preservation ••" ..
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Tree City USA Complete
• Completed all of the requirements and obtained the
Tree City USA designation.
Continue open space and environmental preservation Ongoing public education.
• Hosted multiple education and outreach events
regarding the City's open space.
• Conducted a social media campaign for Wildfire
Awareness Month in September.
• Conducted a "What's in your Pack" trail safety
campaign at various City trailheads.
Strategic Plan Goal 4: Infrastructure & Technology
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Complete the Energy Efficiency Evaluation In Progress
• Energy Efficiency Study is expected to be completed by the end of June 2024.
Develop and implement a short and long-term plan to Complete & Ongoing address the landslide under La Paz Road and make the
permanent repairs • Opened mo-way traffic on La Paz Road a month ahead of schedule and on budget.
• Began the design phase of the long-term plan.
Continue the Active Transportation Study In Progress
• Awarded the consulting contract for the Active
Transportation Plan (ATP) project.
• Successfully implemented the ATP Temporary Pilot
Bike Lane along Aliso Creek Road and held numerous
stakeholder and community outreach activities.
• Received the 8. E. S. T Project Award from the American Public Works Association (APWA) for the ATP
Temporary Bike Lane along Aliso Creek Road.
Complete the design of the Traffic Management Center In Progress • The Traffic Management Center will open in Fall 2025.
Design the Bus Shelter Improvements Complete
• The design is complete and the RFP for construction
will occur next fiscal year.
Design and install the Spring Street Banner Complete
• Design is completed and the banners were installed
following the holiday season.
Strategic Plan Goal 5: Economic & Community Development .- - · S.tr.aJ~aV
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General Plan Update In Progress
• Draft General Plan Update will be complete in June.
• General Plan Update is scheduled for Planning
Commission and City Council meetings in Fall 2025.
Municipal Code Update Ongoing
• Draft Municipal Code Update is in the final stage of
review between the Municipal Code Consulting firm
and legal counsel.
• Final code adoption is expected to be completed in
early 2026.
Economic Development Ongoing
• Successful coordination with all shopping center
owners and businesses through our ongoing
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Economic Development Program.
• Continued the Featured Business Program videos on
the Economic Development website.
• Continued the Economic Development weekly
newsletters.
Housing Element Policy Implementation Complete
• All Phase I & Phase II State mandated code
amendments have been adopted.
• All new ADU requirements have been adopted
Strategic Plan Goal 6: Communication & Community Outreach ::·· .. Stl'clteav
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' Continued enhancement of City communication and Ongoing community outreach
• Increased the social media followers by over 10,000 in the last two years.
• Continued to enhance the quarterly community
newsletter the Beacon that has a "click open rate"
double industry standards.
• Enhanced community communications at all levels
with quality and informative content for the community.
Develop and Implement a Crisis Communication Policy Complete • The Crisis Communication Policy has been written &
staff training has been completed.
Additional Items/Projects Completed
Additional Projects Completed
• Developed and implemented the annual commissioner/committee training. • Successfully negotiated the settlement with the Bear Brand Homeowners Association to keep the trail open for public use.
• Developed and taught a local government training program for the OC Sheriff's Department. • Conducted executive leadership and management team building and trainings throughout the year.
• Developed and implemented aquatics service enhancements, which provided more programs to the community and reduced costs to the City. • Restructured the Recreation Software Management Program with the third party vendor that saved the City $24,000 per year.