To:
CITY OF LAGUNA NIGUEL
CITY COUNCIL AGENDA ITEM
FROM:
Honorable Mayor and Council Members
Justin J. Martin, Assistant City Manager
August 18, 2026 DATE:
SUBJECT: Amendment to the City Manager Employment Agreement
RECOMMENDATION
Staff recommends that the City Council adopt Resolution No. 2026-1538, approving the Sixth 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. • On August 19, 2025, upon completion of her sixth year of service, the City Council approved the fifth amendment to the City Manager Employment Agreement.
The City Council conducted the current annual evaluation of City Manager Letourneau on August 4, 2026. The City Council gave direction to make proposed amendments to provisions of the City Manager Employment Agreement. Resolution No. 2026-1538 (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 B, Fiscal Year 2025-26 Accomplishments.
Given these accomplishments, the City Council has provided direction to amend the City Manager Employment Agreement. The Sixth Amendment to the Agreement includes provisions that reflect the Council's direction and are based on performance over the past year. Those provisions are as follows:
• A 3.3% salary adjustment, from $316,344 per year to $326,784 per year, effective August 12, 2026.
• A one-time lump sum performance bonus of $15,000.
• A change in annual deferred compensation contribution, from $24,000 to $32,500, including moving the annual deferred compensation contributions from the 457 retirement account to the 401 (a) retirement account.
All items listed above would be effective on City Manager Letourneau's anniversary date . with the City on August 12, 2026. 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 choose not to approve Resolution No. 2026-1538. However, this alternative is not recommended, as the Sixth Amendment is the result of negotiated adjustments to the Agreement.
FISCAL REVIEW
The total Fiscal Year 2026-27 cost of this contract amendment is approximately $31,710.
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. 2026-1538, approving the Sixth Amendment to the City Manager Employment Agreement with Tamara S.
Letourneau.
anager
1~4~
Trevor Agrelius
Finance Director
Attachments:
Scott C. Smith
City Attorney
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A. Resolution No. 2026-1538, Approving the Sixth Amendment to the City Manager Employment Agreement with Tamara S. Letourneau
B. Fiscal Year 2025-26 Accomplishments
ATTACHMENT A
Resolution No. 2026-1538 Approving the Sixth Amendment to the City Manager Employment Agreement with Tamara S. Letourneau
RESOLUTION NO. 2026-1538
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF LAGUNA NIGUEL, CALIFORNIA,
APPROVING THE SIXTH 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, at the City Council regular meeting on August 19, 2025, based upon the City Manager's annual performance evaluation, the Council adopted Resolution 2025- 1509, approving the Fifth Amendment to the City Manager Employment Agreement; and WHEREAS, on August 4, 2026, 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 and amend the City's annual deferred compensation 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 Sixth Amendment to the Employment Agreement between the City of Laguna Niguel and Tamara S. Letourneau, attached hereto as Exhibit A, effective August 18, 2026.
SECTION 2. The salary rate for the position of City Manager shall be $27,232 per month, effective August 12, 2026. 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 deferred compensation retirement contribution to $32,500 annually for-the City Manager.
SECTION 5. The Mayor is authorized to execute the Sixth Amendment to the Employment Agreement betwefin the City of Laguna Niguel and Tamara S. Letourneau.
PASSED, APPROVED AND ADOPTED this 18th day of August, 2026.
Gene Johns, Mayor
ATTEST:
Marissa J. Asistin, City Clerk
Exhibit A: Sixth Amendment to Employment Agreement between City of Laguna Niguel and Tamara S. Letourneau
Exhibit A
Sixth Amendment to Employment Agreement
City Manager - City of Laguna Niguel
SIXTH AMENDMENT TO EMPLOYMENT AGREEMENT
CITY MANAGER - CITY OF LAGUNA NIGUEL
This Sixth Amendment ("Sixth Amendment") is entered into this 18th day of August, 2026, 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 Fifth Amendment approved on the 19th day of August 2025.
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 19, 2025, the Fifth Amendment to the City Manager Employment Agreement was approved by the City Council. ,
G. On August 4, 2026, the City Council completed Letourneau's annual performance evaluation, and the Parties now desire to make certain adjustments in the Agreement.
H. This Sixth Amendment is intended to provide for an adjustment to Letourneau's salary, deferred compensation retirement contribution, and to memorialize the award of a performance bonus authorized under the Agreement.
I. This Sixth Amendment was approved by the City Council at its regular meeting on August 18, 2026.
AGREEMENT
NOW, THEREFORE, in consideration of the mutual covenants contain~d 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 $326,784 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, 2026.
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 $32,500 per year to the MissionSquare Retirement, formerly known as ICMA RC, 401(a) 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 Letourneau's participation in said Plan.
4. Except as revised by this Sixth Amendment, all other provisions of the Agreement shall remain in full force and effect.
IN WITNESS WHEREOF, the Parties have executed this Sixth 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:
Gene Johns
Mayor
Tamara S. Letourneau
City Manager
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ATTACHMENT B
Fiscal Year 2025-26 Accomplishments
ATTACHMENT A
FY 25-26 Accomplishments
Strategic Plan Goal 1: Public Safety
·strateav.
Continue focusing on continuity of
public safety services
Continue focusing on the
enhancement of the Neighborhood
Watch Programs
Continue enhancement of the
Business Watch Programs
Continue emergency preparedness
training, education and
communication with staff and the
public
Status
Ongoing
• Continual tracking and monitoring of crime data,
service indicators, response times.
• Continual training and emphasis on providing
outstanding customer service to the City with each and
every interaction.
Complete & Ongoing
• Formed 7 new Neighborhood Watch Groups increasing
participation to 67 groups, including 20 multi-family
properties.
• Hosted two large-scale Neighborhood Watch all block
captain meetings.
• Focus on cultivating relationships with property
managers for multi-family properties.
Complete & Ongoing
• Business Watch Program has been fully implemented
citywide and will continue as part of ongoing Police
Services operations.
• Hosted annual Business Watch meeting to further
education businesses about security and safety
measures, crime prevention through environmental
design, and Real Time Operation Center camera
integration.
Complete & Ongoing
• Implemented emergency preparedness staff training.
• Developed Nixie/Alert OC Use Crisis Communication
Policy.
• Conducted wildfire tabletop exercise and joint
operations briefing with OCFA.
• Hosted quarterly Emergency Communications
meetings.
• Completed evacuation route maps to assist in
emergency response and enhance public safety.
Strategic Plan Goal 2: Fiscal
Strateav
Complete the Banking Request
for Proposal (RFP) process and
implementation
Implementation of the biennial
budget for FY 25-27
Begin the utility franchise audits
Update the Records Retention
Policy & Practices
Implement citywide electronic
contract management
procurement software
Obtain the Government Finance
Officers Association (GFOA)
Triple Crown Award*
Status
Complete
• Completed the transition from US Bank to Wells Fargo Bank. • Reduced banking fees.
• Increased efficiencies and increased credit card rebates.
Complete
• FY 25-27 budget was adopted and has been fully
implemented citywide.
• The two year budget has resulted in increased
organizational efficiencies, including saving staff time citywide.
Ongoing/In Progress
• In process of working with vendors to review franchise reports and utility bills to verify utility company revenue to the City.
Complete
• New Records Retention Policy was approved in December 2025.
• The policy has been implemented citywide, which has
resulted in increased organizational\efficiency, reduction in staff time and costs to store outdat~ records.
On Schedule/In Progress
• Implementation of the citywide electronic contract
management software is in process.
• Licensing has been purchased and the program is in the process of being introduced to the organization one
department at a time.
Complete
• For the first time in the City's history, Laguna Niguel won the GFOA Triple Crown Award for excellence in financial reporting for: Annual Comprehensive Financial Report
(ACFR); budget book; and, the Popular Annual Financial
Report.
• Laguna Niguel is one of only 20 cities in California that have this distinction.
*Not included m the original list of goals; however, it was accomp lished m FY 25-26 Strategic Plan Goal 3: Open Space & Environmental Preservation ,· ..
·strat~av
. ·.·•· r·s. --··--""'
status 1· ...
Complete the open space inventory Complete
• Open space inventory was completed in Fall 2025 .
• Map is available on the City's website
Host education and outreach Complete & Ongoing
events on open space and
environmental preservation • Conducted 8 trail education events in 2025 which included staff walking the trails, passing out maps,
providing information to trail users, and answering
questions.
10-Year Trail & Open Space Complete
Maintenance Plan*
• Plan development was included in the FY 25-27
budget
• 10-year trail and open space plan has been completed
and is being implemented .
. . *Not included m the ongmal !1st of goals; however, 1t was accomplished m FY 25-26 Strategic Plan Goal 4: Infrastructure & Technology
r· --- • str:at~av . ·_statili·
.. ..
. .. --· .. ... · .. • . • ... --,·· ;-.
" ""··"- .
Complete the energy efficiency Complete
study for City facilities & parks
• The Energy Efficiency Evaluation has been
completed.
• The memorandum summarizing the results was
emailed to the City Council on April 27th.
Complete the infrastructure Study On Schedule/In Progress • The evaluation of all of the infrastructure needs in the City is in the process of being complete. Areas
completed to date include: parks and facilities. Streets will be complete later in 2026.
Complete the Active Transportation Complete
Study
• The Active Transportation Study was adopted
September 2025 and is being implemented.
Adopt the County Waste
Infrastructure System
Enhancement (WISE) Agreement*
Construct the bus shelters
Continue working on the
environmental documents and
design of the permanent La Paz
repair
GIS Technology Implementation**
Complete
• The updated WISE Agreement was approved by the
County of Orange and was subsequently adopted by
Laguna Niguel in April 2026.
Ongoing/In Progress
• Design of the new bus shelters was completed in June
2025.
• Bidding will occur in Spring 2026
Ongoing/In Progress
• Permanent improvements to La Paz Road are in the
process of being completed.
• The final design has been approved and the
environmental work is in the process of being
completed.
Complete
• Capital Improvement Program GIS Map was
implemented on the City's website in January 2026.
*The adoption of the WISE Agreement was in Goal 4 in the goals for FY 25-26; however, m the updated strategic plan it has been moved to Goal 3.
**Not included in the original list of goals; however, it was accomplished in FY 25-26 Strategic Plan Goal 5: Economic & Community Development Adopt the General Plan Update
Successful implementation of the
expanded Laguna Niguel Summer
Trolley
Complete
• The General Plan Update was approved by the City
Council in November 2025.
Complete
• The addition of a 5 stop was successfully launched in Summer 2025.
• Each year ridership has surpassed that of the previous year.
Prepare for the Summer 2026 City
Center Groundbreaking
Continued business
attraction/retention/education
Continue to work with the Federal
Government on the sale of the
Federal Building Property
Complete the Municipal Code
Update
Implement the online permit center*
In Progress
• Plans are underway to have the groundbreaking in
September 2026.
Ongoing/In Progress
• Revamped/relaunched the Economic Development
newsletter - Niguel Now!
• Revamped/relaunched the Featured Business
Program.
• Welcomed a number of new businesses to the
community in FY 25-26.
• Expanded economic development social media
promotion and increased community engagement.
• Hosted/promoted 25 SCORE workshops (hosted 3 at
City Hall, promoted 9 workshops in the region and
promoted 13 online programs.)
Ongoing/In Progress
• As soon as the sale is complete and there is a new
property owner staff will begin working with the new
owner on the development of the property.
Ongoing/In Progress
• Adoption of the updated Municipal Code is scheduled
for August 2026.
Completed
• The online permit center has been fully implemented,
which means that all permits are available in one
centralized location streamlining all building, grading and planning permit applications.
*Not included in the original list of goals; however, it was accomplished in FY 25-26 Strategic Plan Goal 6: Communication & Community Outreach Continue to erihance public
education and outreach on all
platfonns
Adopt • a citywide style guide for
consistent City branding
Leverage data analysis to curate
citywide messaging
·-·
Ongoing/In Progress
• As of January 1, 2026, the City has the third most
Facebook followers and fifth most lnstagram followers
out of twenty Orange County cities with a population
of under 70,000.
• Surpassed 1.3 million annually with Facebook reach.
• Surpassed 14,000 lnstagram followers.
Ongoingnn Progress
• The creation of a citywide style guide for consistent community messaging is in the process of being
completed.
Ongoing/In Progress
• All of the City's social media data has been integrated into Tableau for more effective and efficient data
collection and analysis.