2024-09-09_item_4.7_approve_contract_amendments_for_the_city_manager_city_attorney_police_chief

Docusign Envelope ID: 1CA2AABE- A20- 4B32- 9051- 0A7E4994F63A ITEM 4. 7

CITY MANAGER' SREPORT
SEPTEMBER 9, 2024 CITY COUNCIL REGULAR MEETING
ITEM: APPROVE CONTRACT AMENDMENTS FOR THE

CITY MANAGER, CITY ATTORNEY & POLICE CHIEF
RECOMMENDATION: Adopt Resolution Approving Amendment Number Six to the City Manager Employment Agreement,
Amendment Number Four to the City Attorney
Employment Agreement and Amendment Number
One to the Police Chief Employment Agreement
BACKGROUND:

The City Council reviews the performance of the two Council appointed officials, City Manager and City Attorney, annually. This year the review incorporated Police Chief Stephen Sealy as a result of the Council' saction in November 2023 to appoint Stephen Sealy to the Police Chief position.

At the August 12, 2024, City Council meeting, the Council completed the performance evaluations with each of the three Council appointed officials. The attached Resolution authorizes a three percent ( 3%) salary increase for each of the officials effective July 6, 2024, and resets the review period of the Police Chief.

Tonight' s action formalizes the approval of the City Council action on August 12, 2024.

FISCAL IMPACT:

The budget amendment required covers the salary increase and CaIPERS benefits / overhead costs for each employee. Budget increase in FY 24-5 is as follows:

City Manager - Increase Expenditures
1010- 1120- 410- XX00 $ 9, 707
City Attorney - Increase Expenditures
1010- 1310- 410- XX00 $ 9, 107
Police Chief - Increase Expenditures
1010- 4050- 410- XX00 $ 8, 777
ATTACHMENTS:

A. Resolution
B. Amendment 6 for City Manager Stephen Salvatore
C. Employment agreement packet for City Manager Stephen Salvatore D. Amendment 4 for City Attorney Salvador Navarrete
E. Employment agreement packet for City Attorney Salvador Navarrete F. Amendment 1 for Police Chief Stephen Sealy
G. Employment agreement packet for Police Chief Stephen Sealy Docusign Envelope ID: 1CA2AABE- A20- 4B32- 9051- 0A7E4994F63A CITY MANAGER' S REPORT PAGE 2
SEPTEMBER 9, 2024 CITY COUNCIL MEETING

CONTRACT AMENDMENTS FOR CITY MANAGER, CITY ATTORNEY & POLICE CHIEF
APPROVALS:

Signed by:

M41. na, Scoff
30OCR1rF1 SRFAXI
9/4/ 2024
Marcie Scott Date
Human Resources Consultant
Approved electronically/
Signature in Resolution
Michael G. Colantuono Date
Special Counsel
Docusign Envelope ID: 0C2CBAB4- 7D79- 4570- 6210-46525B34445 RESOLUTION NO. 24-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP

APPROVING AMENDMENT NUMBER SIX TO THE CITY MANAGER

EMPLOYMENT AGREEMENT, AMENDMENT NUMBER FOUR TO THE CITY

ATTORNEY EMPLOYMENT AGREEMENT AND AMENDMENT NUMBER ONE TO

THE POLICE CHIEF EMPLOYMENT AGREEMENT
WHEREAS, the City Council reviews the performance of the two Council appointed officials, City Manager and City Attorney each year in July pursuant to their written procedures; and
WHEREAS, the Police Chief was appointed as Interim Chief and later Police Chief through Council action November 13, 2023, and through tonight' s action will align with the annual July performance review process; and WHEREAS, at the August 12, 2024, regular City Council meeting, the parties met in closed session for their performance discussions as required; and WHEREAS, the City Council completed the annual performance evaluations for the City Manager, City Attorney and Police Chief on August 12, 2024, and gave direction for the preparation of amendments to each official' s employment contract; and
WHEREAS, tonight' s action implements the City Council direction given on August 12, 2024; and
WHEREAS, Amendments to the Employment Contracts for City Manager, City Attorney and Police Chief have been prepared in accordance with the direction by a majority of the City Council.

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Lathrop hereby approves Amendment Number Six ( 6) to the City Manager Employment Agreement, Amendment Number Four ( 4) to the City Attorney Employment Agreement and Amendment Number One ( 1) to the Police Chief Employment Agreement.

BE IT FURTHER RESOLVED, that the City Council of the City of Lathrop also hereby approves the following FY 24-5 budget amendment required to covers the salary increase and CaIPERS benefits / overhead costs for each employee, as follows:

City Manager - Increase Expenditures
1010- 1120- 410- XX00
City Attorney - Increase Expenditures
1010- 1310- 410- XX00
Police Chief - Increase Expenditures
1010- 4050- 410- XX00
9, 707
9, 107
8, 777
373006. 1 1 Resolution No. 24-
Docusign Envelope ID: 0C2CBAB4- 7D79- 4570- B210- 646525B34445 The foregoing resolution was passed and adopted this 9th day of September, 2024, by the following vote of the City Council, to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

Sonny Dhaliwal, Mayor
ATTEST: APPROVED AS TO FORM:

Signed by;
M. id u l, G. Golaun# uoltio, siva (,Durst(,
Teresa Vargas, City Clerk Mlcnaet rolantuono, Special Counsel 373006. 1 2 Resolution No. 24-
Docusign Envelope ID: EC109194- 0O3E- 4652- 8EDA- 4A1C43429B98 Attachment B
Amendment Number Six to Employment Agreement Between the City of Lathrop and Stephen J. Salvatore, City Manager
September 9, 2024
The original Employment Agreement between the City of Lathrop and Stephen J. Salvatore, attached hereto and incorporated herein as Exhibit " A", was entered into between the parties for services of City Manager on or about September 17, 2012.

On or about August 17, 2015, the City Council unanimously agreed to renew and extend the Employment Agreement ( Amendment Number One) attached and hereto incorporated herein as Exhibit " B".

On or about November 19, 2018 the City Council approved Amendment Number Two, attached and incorporated herein as Exhibit " C".

On or about August 8, 2022 the City Council approved Amendment Number Three, attached and incorporated herein as Exhibit " 0".

On or about August 14, 2023 the City Council approved Amendment Number Four, attached and incorporated herein as Exhibit " E".

On or about December 11, 2023 the City Council approved Amendment Number Five, attached and incorporated herein as Exhibit " F".

The Council hereby approves a merit increase of 3% to base salary effective July 6, 2024.

Unless specifically stated above, no other changes to the original agreement ( or Amendments) are intended by this Amendment.

EMPLOYEE CITY OF LATHROP
By: By:

Stephen J. Salvatore Sonny Dhaliwal, Mayor
Date: Date:

APPROVED AS TO FORM:

CDocuSigned
by:
hum a colvyroliket
L U F UUt3 lb 11 Ut34AA...

Michael G. Colantuono, Special Counsel
ATTEST:

Teresa Vargas, City Clerk/ Government Services Director 1 Docusign Envelope ID: EC109194- 0O3E- 4652- 8EDA- 4A1C43429B98 Attachments:

EMPLOYMENT AGREEMENT
THIS EMPLOYMENT AGREEMENT (" Contract") is made and entered into this 17 day of September, 2012, by and between the City of Lathrop, California, a general law city organized under the laws of the State of Califomia, hereinafter called " Employer," and Stephen J.

Salvatore, an individual, hereinafter called " Employee," and is effective as of September 17, 2012 (" Effective Date").

The parties agree as follows:

SECTION 1. DUTIES.

Employer hereby employs Employee as City Manager to perform the functions and duties specified in the laws of the State of California, the Municipal Code of the City of Lathrop, and the Ordinances and Resolutions of the City of Lathrop, and to perform such other legally permissible and proper duties and functions as the City Council shall from time to time assign.

SECTION 2. TERM.

A. The term of this Contract shall initially be for three ( 3) years, commencing as of the Effective Date, and shall be automatically renewed and extended for additional three ( 3) year periods at the end of each three year period, unless either party shall provide written notice of non -renewal at least ninety ( 90) days prior to the end of the period in which notice is given.

B. Nothing in this Contract shall prevent, limit, or otherwise interfere with the right of Employee to resign as City Manager or as an employee of the City at any time for any reason.

C. Employee shall remain in the exclusive employ of Employer, and shall neither accept other employment nor become employed by any other employer except upon written approval of Employer.

D. The term " employed" shall not be construed to include occasional teaching, writing, speaking, or consulting performed during Employee' stime off.

E. Employee' sinitial date of hire was January 1, 2008, but this Agreement is effective as the Effective Date specified above.

SECTION 3. SALARY.

Employer agrees to pay Employee, commencing with the Effective Date for his duties, the base annual salary of one hundred and seventy one thousand one hundred thirty one dollars

Page 1 of 6 ends

171,31) payable in installments at the same time and in the same manner as other Employees of the Employer are paid.

On the one ( 1) year anniversary of the Effective Date, the City Council shall conduct an annual performance evaluation. This evaluation shall be completed as a joint effort between Employee and Employer. If desired, an outside facilitator, to be mutually agreed upon by Employer and Employee, and at Employer' s
sole cost, may be utilized. On the subsequent anniversaries, Employer may grant merit increases to the base annual salary and provide other benefits to Employee under this Contract at their discretion.

SECTION 4. HOURS OF WORK.

It is recognized that Employee must devote a great deal of time outside normal office hours to business of Employer. To that end, Employee will be granted management leave at a rate of four 4) weeks of management leave per calendar year. Management leave is fully credited on January 1st of each year.

SECTION 5. AUTOMOBILE ALLOWANCE.

Employer shall receive an a automobile allowance of $450. 00 per month for the general business use of his personal vehicle; however, Employer shall also reimburse Employee at the IRS standard mileage rate for any business use of his personal vehicle for any single business trip totaling more than 100 miles.

SECTION 6. TERMINATION.

This Contract shall terminate upon the occurrence of any ofthe following events:

A. The death ofEmployee.

B. The dissolution or bankruptcy of Employer.

C. The disability of Employee, as defined herein.

D. The majority of the City Council of Employer votes to terminate the Employee at a duly authorized meeting. Except for non -renewal of contract pursuant to 2A, the Employer however shall not terminate Employee within a " cooling off' period of ninety ( 90) days either before or after an election for which a City Council Member is elected.

E. If the Employer, citizens or legislature act or acts to amend any provision of applicable law that substantially changes the role, powers, duties, authority, or responsibilities of the Employee, the Employee shall have the right to declare that such amendments constitute termination.

Page 2 of 6 ends

F. If the Employer reduces the base salary, compensation or any other financial benefit of the Employee, unless any such reduction is pursuant to a City wide furlough program, such action shall constitute a breach ofthis Contract and will be regarded as termination.

G. If the Employee resigns following an offer to accept resignation, by majority of the City Council of Employer, then the Employee may declare a termination as of the date of the requested resignation.

H. Breach of contract declared by either party with a thirty (30) day cure period for either Employee or Employer to be provided. Written notice of a breach of contract shall be provided.

I. Conviction of Employee of any public offense that is a felony, and/ orinvolves moral
turpitude, and / or the punishment for which includes a prohibition of holding public employment.

SECTION 7. CONFIDENTIALITY.

Unless the Employee expressly requests otherwise in writing, the evaluation of the Employee during his service as City Manager shall at all times be conducted in closed session of the City Council and shall be considered confidential to the full extent permitted by law. Nothing herein shall prohibit the Employer or the Employee from sharing the content of Employee' sevaluation with their respective legal counsel.

SECTION 8. SEVERANCE P AY.

If this Contract is terminated pursuant to Section 6, Paragraph B, D, E, F, G or City breach of Contract, Employer shall pay severance to Employee in the amount of six ( 6) months' salary.

Instead of six of severance pay in accordance with this Section, Employee may elect to treat the non -renewal of the Contract ( as described in herein and in Section 2) as a termination that entitles him to three ( 3) months' severance pay in addition to regular pay during the 90 day notice period of non -renewal referenced in Section 2A.

If this contract is terminated for any reason specified herein, Employee shall be paid for all accrued and unused sick leave, vacation time, paid holidays; and the value of all benefits including employer' scontribution to PERS, Health Insurance allowance, and car allowance.

Severance will be paid in one payment within 30 days of termination.

SECTION 9. NOTICE TO RESIGN
Employee may terminate this Contract by providing written notice to the City at least thirty ( 30) days prior to the effective date of resignation. The Employer shall have no further obligation to provide payments and benefits to Employee for his service as City Manager after the effective date of the resignation except for all accrued and unused management leave, sick leave and vacation time. The City requests that Employee provide six ( 6) to twelve ( 12) months advance notice in the event that he determines to retire from service.

Page 3 of 6 ends

SECTION 10. INDEMNIFICATION.

Employer shall defend, save harmless and indemnify Employee in accordance with Division 3. 6 of the California Government Code, commencing with section 810.

SECTION 11. BONDING.

Employer shall bear the full cost of any fidelity or other bonds required of the Employee under any law or ordinance.

SECTION 12. DISABILITY, ADJUSTMENTS, HEALTH AND LIFE
INSURANCE. COST -OF -LIVING, VACATION AND SICK LEAVE.

Unless otherwise specifically provided herein, all provisions of the Municipal Code and regulations and rules of Employer relating to vacation and sick leave, retirement system contributions, holidays and other fringe benefits and working conditions as they now exist or hereafter may be amended also shall apply to Employee as they would to other unrepresented employees of the Employer. An annual cost of living increase adjustment shall be applied to the base annual salary going forward to Employee as established for all other non -represented employees. Additionally, Employee will accrue vacation and sick leave at a rate as outlined in the City' s
Administrative Policies Manual based on his initial hire date.

SECTION 13. RETIREMENT.

Employer shall pay Employee' scontribution to the Public Employees Retirement System in accordance with adopted policies ofEmployer.

SECTION 14. NOTICES.

Notices pursuant to this Contract shall be in writing given by deposit in the custody of the United States Postal Service, postage prepaid, addressed as follows:
1) Employer
2) Employee
Mayor, City ofLathrop, 390 Towne Centre Drive, Lathrop, CA At his address as reflected in his personnel records of the City.

Alternatively, notices required pursuant to this Contract may be personally served in the same manner as is applicable to civil judicial process. Notice shall be deemed given as of the date of personal service or as of the date of deposit of such written notice in the course of transmission in the United States Postal Service.

SECTION 15. GENERAL PROVISIONS.

A. The text herein shall constitute the entire Contract between the parties.

Page 4 of 6 ends

B. If any provision, or any portion thereof, contained in this Contract is held unconstitutional, invalid or unenforceable, the remainder of this Contract, or portion thereof, shall be deemed severable, shall not be affected and shall remain in full force and effect.

IN WITNESS WHEREOF, the City of Lathrop has caused this Contract to be signed and executed in its behalf by its Mayor and duly attested by its City Clerk, and the Employee has signed and executed this Contract, both in duplicate, the day and year first above written.

EMPLOYEE
Bv:

Date:
en J. Salvatore
q / 1
ilZ
APPROVED AS TO FO :

Salvador Navarrete, City Attorney
ATTEST:

Mitzi rtiz, Clerk

CITY OF LATHOP
J Chak
Date: q Al i \e).

Page 5 of 6 ends

Amendment Number One to Employment Agreement between
The City of Lathrop and Stephen J. Salvatore
August 17, 2015
4 The original Employment Agreement between the City of Lathrop and Stephen J. Salvatore, attached hereto and incorporated herein as Exhibit " A", was entered into between the parties for the services of City Manager on or about September 17, 2012.

The City Council has met and unanimously agreed to renew and extend this Employment Agreement pursuant to the conditions as described in Section 2 of the Employment Agreement.

IN WITNESS WHEREOF the City of Lathrop has caused this Amendment No. 1 to be signed and executed in its behalf by its Mayor and duly attested by its City Clerk, and the employee has signed and executed this Amendment both in duplicate.

EMPLOYEE CITY OF LATHROP
B
ephen J. Salvatore Sonny Dhaliwai, Mayor
Date: A• 11., 5
APPROVED AS TO FORM:

Salvador Navarrete, City Attorney
ATTEST:

Ill4eresa- 61dVargas, City
Date:

Attachment: Exhibit A - Employment Agreement for Stephen J. Salvatore effective September 17, 2012 1 Amendment Number Two to Employment Agreement Between the City of Lathrop and Stephen J. Salvatore
November 19, 2018
The original Employment Agreement between the City of Lathrop and Stephen J. Salvatore, attached hereto and incorporated herein as Exhibit "A", was entered into between he parties for services of City Manager on or about September 17, 2012.

On or about August 17, 2015, the City council unanimously agreed to renew and extend the Employment Agreement pursuant to the conditions as described in Section 2 ofthe Employment Agreement, attached hereto and incorporated herein as Exhibit "B". In addition, the Employment Agreement automatically renewed for an additional 3 years in September 2018.

The City Crnn' ilhas met and with a vote of4-0. with Councilmember Dresser absent, approves the following amendment to the Employment Agreement, effective November 19, 2018:

1. Increase current base annual salary by 5%;

2. Up to forty (40) hours of sick leave can be cashed out annually; and

3. Employer will contribute $ 2, 179 per month towards the Employee' shealth, dental and vision insurance benefits, and any such increases to benefits provided to other management employees.

Unless specifically stated above. no other changes to the original agreement ( or Amendment One) are intended by this Agreement.

EMPLOYEE -
J. Salvatore
Date: N• JNS
APPROVED AS TO FORM:

Salvador Navan eta, City Attorney
ATTEST:
1 / tywri6--

CITY OF LATHROP
By:
y Dhaliwal, Mayor
Date: / 1/9/ Pr
Attachments:

Exhibit "A" — Employment Agreement for Stephen J. Salvatore, effective September 17, 2012 Exhibit "B" — Amendment Number One to Employment Agreement dated August 17, 2015 Amendment Number Three to Employment Agreement Between the City of Lathrop and Stephen J. Salvatore
August 8, 2022
The original Employment Agreement between the City of Lathrop and Stephen J. Salvatore, attached hereto and incorporated herein as Exhibit "A", was entered into between the parties for services of City Manager on or about September 17, 2012.

On or about August 17, 2015, the City Council unanimously agreed to renew and extend the Employment Agreement ( Amendment Number One) attached and hereto incorporated herein as Exhibit " B".

On or about November 19, 2018 the City Council approved Amendment Number Two, attached and incorporated herein as Exhibit " C".

The City Council hereby approves a performance -based increase in the City Manager' scurrent base salary of6%, effective July 11, 2022.

Unless specifically stated above, no other changes to the original agreement ( orAmendments) are intended by this Amendment.

EMPLOYEE
By:

Stephen J. Salvatore
Date: S/ 0/ ZZ
APPROVED AS TO FORM:

Michael G. Colantuono
Special Counsel
ATTEST:
eresa Vargas, City Cler / Government Services Director
Sonny DDhaliwal, Mayor
Date:

Attachments:

On or about August 17, 2015, the City Council approved Amendment Number One to the Employment Agreement, which is attached and incorporated herein as Exhibit " B." On or about November 19, 2018, the City Council approved Amendment Number Two, which is attached and incorporated herein as Exhibit " C."
On or about August 8, 2022, the City Council approved Amendment Number Three, which is attached and incorporated herein as Exhibit " D."
The City Council hereby approves an amendment to the first paragraph of Section 8 of the Employment Agreement to read as follows:

If this Contract is terminated pursuant to Section 6, Paragraph B, D, E, F, G, or City breach of Contract, Employer shall pay severance to Employee in the amount of twelve (12) months of salary. Instead of twelve months of severance pay in accordance with this Section, Employee may elect to treat the non - renewal of the Contract ( as described in Section 2) as a termination that entitles him to nine ( 9) months of severance pay in addition to regular pay during the 90 day notice period of non- renewal referenced in Section 2A. This provision shall be limited by the requirements of Government Code sections 53260 and 53621.

Unless specifically stated above, no other changes to the original agreement ( or Amendments) are intended by this Amendment.

EMPLOYEE
Date: $• 1c4 z3
APPRQV1D AS TO FORM:

Counsel
CITY
By:

Date: g
Vice
A EST:
resa Vargas, City Clerk/ Go fnent Services Manager
Attachments:

Exhibit " A" — Employment Agreement for Stephen J. Salvatore effective September 17, 2012 Exhibit " 8" — Amendment Number One to Employment Agreement dated August 17, 2015 Exhibit " C" — Amendment Number Two to Employment Agreement dated November 19, 2018 Exhibit " D" — Amendment Number Three to Employment Agreement dated August 8, 2022 Amendment Number Five to Employment Agreement between
The City of Lathrop and Stephen J. Salvatore
December 11, 2023
The original Employment Agreement between the City of Lathrop and Stephen J. Salvatore, attached hereto and incorporated herein as Exhibit " A", was entered into between the parties for the services of City Manager on or about September 17, 2012.

On or about August 17, 2015, the City Council approved Amendment Number One to the Employment Agreement, which is attached and incorporated herein as Exhibit " B." On or about November 19, 2018, the City Council approved Amendment Number Two, which is attached and incorporated herein as Exhibit " C."
On or about August 8, 2022, the City Council approved Amendment Number Three, which is attached and incorporated herein as Exhibit" D."
On or about August 14, 2023, the City Council approved Amendment Number Four, which is attached and incorporated herein as Exhibit" E."
The City Council hereby approves an amendment to the second paragraph of Section 8 of the Employment Agreement to read as underlined below:

Severance will be paid in one payment within 30 days of termination. Employee shall cash out 14 hours per pay period of accrued unused sick leave, so long as the accrued sick leave balance remains at a minimum of 160 hours. Increments of less than 14 hours above 160 hours of accrued sick leave will not be cashed out.

Unless specifically stated above, no other changes to the original agreement ( or Amendments) are intended by this Amendment.

EMPLOYEE CITY OF THROP
Date:
ephen J. Salvatore
1411013
Sonny Dhaliwal, Mayor
Date: / 41 /a3
APPROVED AS TO FO M:

Salvador Navarrete, City Attorney
ATTEST:

J
eresa Vargas, City CI
Attachments:

Exhibit " A"— Employment Agreement for Stephen J. Salvatore effective September 17, 2012 Exhibit " B"— Amendment Number One to Employment Agreement dated August 17, 2015 Exhibit " C"— Amendment Number Two to Employment Agreement dated November 19, 2018 Exhibit " D"— Amendment Number Three to Employment Agreement dated August 8, 2022 Exhibit " E"— Amendment Number Four to Employment Agreement dated August 14, 2023 Docusign Envelope ID: EC109194- 0O3E- 4652- 8EDA- 4A1C43429B98 Attachment D Amendment Number Four to Employment Agreement Between the City of Lathrop and Salvador V. Navarrete, City Attorney September 9, 2024
The original Employment Agreement between the City of Lathrop and Salvador V. Navarrete, attached hereto and incorporated herein as Exhibit " A", was entered into between the parties for services of City Attorney on or about January 14, 2008.

On or about November 19, 2018 the City Council unanimously approved Amendment Number One, attached herein as Exhibit " B".

On or about August 8, 2022 the City Council approved Amendment Number Two, attached herein as Exhibit " C".

On or about August 14, 2023 the City Council approved Amendment Number Three, attached herein as Exhibit " D".

The City Council hereby approves a merit increase of 3% to base salary effective July 6, 2024.

Unless specifically stated above, no other changes to the original agreement ( or Amendments) are intended by this Amendment.

EMPLOYEE CITY OF LATHROP
By: By:

Salvador V. Navarrete Sonny Dhaliwal, Mayor
Date: Date:

APPROVED AS TO FORM:

DocuSi9ned by:
2DFDUf3/ b11084AA...

Michael G. Colantuono, Special Counsel
ATTEST:

Teresa Vargas, City Clerk/ Government Services Director Docusign Envelope ID: EC109194- 0O3E- 4652- 8EDA- 4A1C43429B98 Attachments:

Exhibit " A" — Employment Agreement for Salvador V. Navarrete effective January 14, 2008 Exhibit " B" — Amendment Number One to Employment Agreement dated November 19, 2018 Exhibit " C" — Amendment Number Two to Employment Agreement dated August 8, 2022 Exhibit " D" — Amendment Number Three to Employment Agreement dated August 14, 2023 G
Attachment E

EMPLOYMENT CONTRACT
THIS EMPLOYMENT CONTRACT (" Contract") is made and entered into this 1 lth day of December, 2007, by and between the City of Lathrop, California, a general law city organized under the laws of the State of California, hereinafter called "Employer," and Salvador V. Navarrete, an individual, hereinafter called Employee," and is effective as of January 14, 2008 (" Effective Date").

The parties agree as follows:

SECTION 1. DUTIES.

A. General.

Employer hereby employs Employee as City Attorney to perform the functions and duties specified in the laws ofthe State ofCalifornia, the Municipal Code of the City ofLathrop, and the Ordinances and Resolutions of the City ofLathrop, and to perform such other legally permissible and proper duties and functions as the City Council shall from time to time assign.

B. Description ofDuties.

In amplification of Section 1A. of the Contract, Employee shall serve as general counsel and chief legal advisor to employer, and perform all legal duties for Employer, except i) When, in the opinion of Employer, it would be more appropriate to hire outside specialist counsel. In such event, Employee shall assist Employer in selecting such outside specialist counsel. Such outside specialist counsel may serve in lieu ofEmployee on any particular matter, or may assist Employee; or
ii) When counsel for Employer is otherwise provided, as in the case of counsel provided by insurers in connection with various insurance policies held by Employer, or provided by the Risk Management Authority of which Employer is a member; or iii) When a conflict exists such that Employee is prohibited by law or rules of professional conduct from representing or advising Employer.

C. In further amplification of Section 1.A. ofthis contract, Employee shall, unless excused by Employer, attend all meetings of the City Council and the Planning Commission of the City ofLathrop, and meetings of such other Boards or Commissions of the City as the City Council may, from time to time, direct.

D. In further amplification of Section 1. A of this Contract, it is recognized and agreed that Employee reports to the City Council of Employer, and not to the City Manager of Employer, but Employee will co- ordinate with the City Manager ofEmployer to ensure the legal needs of Employer are met. Employee shall operationally be considered a department head with all the rights, duties and obligations thereof.

SECTION 2. TERM
A. The term of this Contract shall initially be for five (5) years, commencing as of the Effective Date, and shall be automatically renewed and extended for an additional five (5) year period at the end of each renewal and extension period, unless either party shall provide written notice of non -renewal at least ninety (90) days prior to the end ofthe period in which notice is given. In the event Employer declares its intention not to renew and extend this Contract, then Employee, while continuing to perform all of his duties hereunder, may undertake the pursuit of new employment opportunities.

B. Nothing in this Contract shall prevent, limit, or otherwise interfere with the right of Employee to resign at any time for any reason.

C. Notwithstanding any other provision in this Section 2, this Contract may be earlier terminated in accordance with Section 7 ofthis Contract D. Employee shall remain in the exclusive employ of Employer, and shall neither accept other employment nor become employed by any other employer except upon written approval ofEmployer.

E. The term " employed" shall not be construed to include occasional teaching, writing, speaking, or consulting performed during Employee' stime off.

SECTION 3. DISABILITY.

IfEmployee shall, for whatever reason, become incapable of performing any of the essential functions of City Attorney, even with reasonable accommodation by Employer, either

1. Permanently, or

2. For a period exceeding the period of leave available to the Employee under the Family Medical Leave Act or the California Family Rights Act, or accrued sick leave, whichever is longer, then Employee shall be deemed to have suffered a disability. Employer and Employee agree that the time period specified in this paragraph 2 is a reasonable accommodation by Employer, and that granting longer time would be an undue hardship on Employee.

SECTION 4. SALARY.

Employer agrees to pay Employee, effective January 14, 2008, for his duties, a base annual salary of one hundred fifty thousand dollars ($ 150, 00) payable in installments at the same time and in the same manner as other Employees ofthe Employer are paid.

The City Council shall conduct an annual performance evaluation within fifteen ( 15) days ofJanuary 14th each year commencing in 2009. This evaluation shall be completed as a joint effort between Employee and Employer. If desired, an outside facilitator, to be mutually agreed upon by Employer and Employee, and at Employer' ssole cost, may be utilized. Upon satisfactory completion of this annual performance review, Employer may grant merit increases to the base salary and other benefits to provide to Employee under this Contract. Any such modifications shall be in writing and signed by Employee and Employer.

SECTION 5. HOURS OF WORK.

It is recognized that Employee must devote a great deal of time outside normal office hours to business of Employer. To that end, Employee will be granted fifteen ( 15) days of management leave per calendar year.

Management leave is fully credited on January 1s' of each year and cannot be cashed out or rolled over.

SECTION 6. AUTOMOBILE ALLOWANCE.

Employer shall receive an automobile allowance of $450. 00 per month for the general business use of his personal vehicle; however, Employer shall also reimburse Employee at the IRS standard mileage rate for any business use of his personal vehicle for any single business trip totaling more than 100 miles.

SECTION 7. TERMINATION
This Contract shall terminate upon the occurrence of any of the following events:

A. The death ofEmployee.

B. The dissolution or bankruptcy of Employer.

C. The disability ofEmployee, as defined in Section 3 of this Contract.

D. The majority of the City Council of Employer votes to terminate the Employee at a duly authorized meeting.

F. Ifthe Employer reduces the base salary, compensation or any other financial benefit of the Employee, unless it is applied in no greater percentage than the average reduction of all department heads, such action shall constitute a breach of this Contract and will be regarded as termination.

G. If the Employee resigns following an offer to accept resignation, or a suggestion that Employee resign, whether formal or informal, by any member of the City Council ofEmployer acting as representative of the majority of the City Council, then the Employee may declare a termination as of the date of the suggestion.

H. Breach of contract declared by either party with a thirty (30) day cure period for either Employee or Employer to be provided. Written notice of a breach of contract shall be provided.

I. Conviction ofEmployee of any public offense that is a felony, and/ orinvolves moral
turpitude, and/ or the punishment for which includes a prohibition of holding public employment.

SECTION 8. CONFIDENTIALITY
A. Unless the Employee expressly requests otherwise in writing, the evaluation of the Employee shall at all times be conducted in closed session of the City Council and shall be considered confidential to the maximum and full extent permitted by law. Nothing herein shall prohibit the Employer or the Employee from sharing the content of the City Attorney' sevaluation with their respective legal counsel.

B. In the event oftermination or resignation, the Employer and Employee agree not to make comments or statements about each other and shall respond to inquiries by only confirming that such termination or resignation occurred. In addition, the Employer and Employee agree not to discuss the circumstances surrounding employment and termination with any person other than their respective legal counsel, including but not limited to members of the media, public, and City staff.

SECTION 9. SEVERANCE PAY
Ifthis Contract is terminated because of the reasons specified in Section 7. C, 7. D, 7. E, 7. F, 7. G, or an uncured breach by Employer pursuant to 7.H, Employer shall pay severance pay to Employee up to a maximum of nine ( 9) months' salary. Employee may elect to treat the non -renewal ofthe Contract ( as described in Section

2.A) as a termination that entitles him to severance pay in accordance with this Section. A severance bank of six 6) months pay is granted on the 61'` day after the Effective Date of this Contract. Employee thereafter shall earn one ( 1) additional month of severance per year of service, not to exceed a combined total of nine ( 9) months severance.

If Employee is terminated by the Employer within the three (3) months preceding or following a General Election where one or more City Council seats are contested on the ballot of such election (the election cool -off period"), then Employee will be granted an additional three (3) months severance salary only — no payout on additional benefits or leave accruals) to the severance bank currently earned.

Ifthis contracted is terminated for any reason specified in Section 7 within the first 60 days of employment, Employee will receive three ( 3) months of severance pay.

Ifthis contract is terminated for any reason specified in Section 7, Employee shall be paid for all accrued and
contribution
unused sick
to
leave,
PERS,
vacation
Health
time,
Insurance
paid holidays;
allowance,
and
and
the cash
car allowance.
value of all
Severance
benefits including
will be paid
employer' s
in monthly
installments equal in number to the number of months' severance due employee pursuant to this Section.

SECTION 10. NOTICE TO RESIGN
Employee may terminate this Contract by providing written notice to the City at least thirty (30) days prior to the effective date ofresignation. The City shall have no further obligation to provide payments and benefits after the effective date ofthe resignation. The City requests that Employee provide six (6) to twelve ( 12) months advance notice in the event that he determines to retire from service.

SECTION 11. VACATION AND SICK LEAVE.

Employee will accrue vacation at a rate of fifteen ( 15) days per year. Up to forty (40) hours of unused vacation hours earned may be cashed out. Employee will accrue ninety- six (96) hours of sick leave per year. Up to forty ( 40) hours of sick leave can be cashed out annually after Employee accrues ninety- six (96) hours. There is no cap on accrual.

SECTION 12. DISABILITY. COST -OF -LIVING ADJUSTMENTS. HEALTH AND LIFE INSURANCE.

Employee shall be provided the same disability, COLA adjustments ( beginning with 2008 adjustment), health, dental, vision and life insurance benefits that are presently provided to other management employees of Employer and any such increases to benefits will not require City Council action to be effective. Employer will contribute $ 1, 620 per month towards Employee' scafeteria plan.

SECTION 13. RETIREMENT.

Employer shall pay Employee' scontribution to the Public Employees Retirement System in accordance with adopted policies ofEmployer.

SECTION 14. DUES AND SUBSCRIPTIONS.

Employer shall budget and pay for the professional dues and subscriptions ofEmployee necessary for his continuation and full participation in national, regional, state and local associations and organizations necessary and desirable for his continued professional participation, growth and advancement and for the good of Employer.

SECTION 15. PROFESSIONAL DEVELOPMENT.

A. Employer shall budget for and pay the travel and subsistence expenses ofEmployee for professional official travel, meetings and occasions ( maximum of three annually) adequate to continue the professional development of Employee and to adequately pursue necessary official and other functions for Employer, including but not limited to the League of California Cities and such other national, regional, state and local governmental groups and committees thereof of which Employee may serve as a member. Employer shall budget and pay for the travel and subsistence expense of Employee for short courses, institutes and seminars necessary for her professional development and for the good of the Employer.

SECTION 16. REIMBURSEMENT OF EXPENSES.

To the extent Employee necessarily incurs expenses in the performance of her duties, Employee will receive prompt reimbursement therefore. Employee shall submit a claim form to Employer in the form and manner required of any employee. The requirement for a claim form shall apply to mileage reimbursement under Section 6 ofthis Contract.

SECTION 17. INDEMNIFICATION.

Employer shall defend, save harmless and indemnify Employee in accordance with Division 3. 6of the California Government Code, commencing with section 810.

SECTION 18. BONDING.

Employer shall bear the full cost of any fidelity or other bonds required of the Employee under any law or ordinance.

SECTION 19. OTHER TERMS AND CONDITIONS OF EMPLOYMENT.

Unless otherwise specifically provided herein, all provisions of the Municipal Code and regulations and rules ofEmployer including but not limited to those relating to vacation and sick leave, retirement system contributions, holidays and other fringe benefits and working conditions, as they now exist or hereafter may be amended also shall apply to Employee as they would to other unrepresented employees of the Employer.

SECTION 20. NOTICES.

Notices pursuant to this Contract shall be in writing given by deposit in the custody of the United State Postal Service, postage prepaid, addressed as follows:
1) Employer:
2) Employee:

Mayor, City of Lathrop, 390 Towne Centre Drive, Lathrop, CA 95330 Salvador V. Navarrete, 3378 Lighthouse Court, Atwater, CA 95301 Alternatively, notices required pursuant to this Contract may be personally served in the same manner as is applicable to civil judicial process. Notice shall be deemed given as of the date of personal service or as ofthe date of deposit of such written notice in the course of transmission in the United States Postal Service.

SECTION 21. GENERAL PROVISIONS.

A. The text herein shall constitute the entire Contract between the parties.

B. Ifthe Employee dies prior to the expiration of the term of employment, any monies that may be due to him from Employer under this Agreement as of the date of his death shall be paid to his beneficiaries or personal representatives.

C. This Contract shall become effective on the date first written above.

D. If any provision, or any portion thereof, contained in this Contract is held unconstitutional, invalid or unenforceable, the remainder of this Contract, or portion thereof, shall be deemed severable, shall not be affected and shall remain in full force and effect.

Rick Caldeira, City Clerk
APPROVED AS TO FORM:

JOI
j1V. STOVALL, Interim City Attorney
EMPLOYER"
CITY OF %iathrop
By:

Kris
Salvador V. Navarrete
Amendment Number One to Employment Agreement Between the City of Lathrop and Salvador V. Navarrete
November 19, 2018
The original Employment Agreement between the City of Lathrop and Salvador V. Navarrete,' attached hereto and incorporated herein as Exhibit " A", was entered into between the parties for services of City Attorney on or about January 14, 2008.

The Employment Agreement has automatically renewed in January of 2013 and January of 2018 pursuant to the conditions as described in Section 2 of the Employment Agreement, attached hereto and incorporated herein as Exhibit "B".

The City Council has met and with a vote of 4-0, with Councilmember Dresser absent, approves the following amendment to the Employment Agreement, effective November 19, 2018:

1. Increase current base salary by 5%; and

2. If Employee resigns his position, he will be paid for all accrued and unused management leave, sick leave and vacation time.

Unless specifically stated above, no other changes to the original agreement (or Amendment One) are intended by this Agreement.

EMPLOYEE
By:

Date: 1 —/ 9
Salvador V. Navarrete
APPROVED AS TO FORM:

Ade--
ATTEST:
eresa Vargas, City C1

CITY OF LATHROP
B
Sonny Dhaliwal, Mayor
Date: /(// q;/'/ 0
Attachments:

Exhibit " A" — Employment Agreement for Salvador V. Navarrete effective January 14, 2008.

EMPLOYMENT CONTRACT
THIS EMPLOYMENT CONTRACT (" Contract") is made and entered into this 1 1th day ofDecember, 2007, by and between the City ofLathrop, California, a general law city organized under the laws of the State of California, hereinafter called "Employer," and Salvador V. Navarrete, an individual, hereinafter called Employee," and is effective as of January 14, 2008 (" Effective Date").

The parties agree as follows:

SECTION 1. DUTIES.

A. General.

Employer hereby employs Employee as City Attorney to perform the functions and duties specified in the laws ofthe State ofCalifornia, the Municipal Code ofthe City ofLathrop, and the Ordinances and Resolutions of the City ofLathrop, and to perform such other legally permissible and proper duties and functions as the City Council shall from time to time assign.

B. Description ofDuties.

In amplification of Section 1A. ofthe Contract, Employee shall serve as general counsel and chief legal advisor to employer, and perform all legal duties for Employer, except i) When, in the opinion ofEmployer, it would be more appropriate to hire outside specialist counsel. In such event, Employee shall assist Employer in selecting such outside specialist counsel. Such outside specialist counsel may serve in lieu of Employee on any particular matter, or may assist Employee; or
ii) When counsel for Employer is otherwise provided, as in the case of counsel provided by insurers in connection with various insurance policies held by Employer, or provided by the Risk Management Authority of which Employer is a member; or iii) When a conflict exists such that Employee is prohibited by law or rules of professional conduct from representing or advising Employer.

C. In further amplification of Section 1.A. ofthis contract, Employee shall, unless excused by Employer, attend all meetings of the City Council and the Planning Commission of the City of Lathrop, and meetings of such other Boards or Commissions of the City as the City Council may, • from time to time, direct.

D. In further amplification of Section 1. Aof this Contract, it is recognized and agreed that Employee reports to the City Council ofEmployer, and not to the City Manager of Employer, but Employee will co- ordinate with the City Manager of Employer to ensure the legal needs ofEmployer are met. Employee shall operationally be considered a department head with all the rights, duties and obligations thereof.

SECTION 2. TERM,
A. The term of this Contract shall initially be for five (5) years, commencing as of the Effective Date, andshall be automatically renewed and extended for an additional five (5) year period at the end of each renewal and extension period, unless either party shall provide written notice of non -renewal at least ninety ( 90) days prior to the end ofthe period in which notice is given. In the event Employer declares its intention not to renew and extend this Contract, then Employee, while continuing to perform all ofhis duties hereunder, may undertake the pursuit of new employment opportunities.

B. Nothing in this Contract shall prevent, limit, or otherwise interfere with the right of Employee to resign at any time for any reason.

C. Notwithstanding any other provision in this Section 2, this Contract may be earlier terminated in accordance with Section 7 ofthis Contract D. Employee shall remain in the exclusive employ ofEmployer, and shall neither accept other employment nor become employed by any other employer except upon written approval ofEmployer.

E. The term " employed" shall not be construed to include occasional teaching, writing, speaking, or consulting performed during Employee' stime off.

SECTION 3. DISABILITY.

IfEmployee shall, for whatever reason, become incapable of performing any ofthe essential functions of City Attorney, even with reasonable accommodation by Employer, either

1. Permanently, or

2. For a period exceeding the period of leave available to the Employee under the Family Medical Leave Act orthe California Family Rights Act, or accrued sick leave, whichever is longer, then Employee shall be deemed to have suffered a disability. Employer and Employee agree the the time period specified in this paragraph 2 is a reasonable accommodation by Employer, and that granting longer time would be an undue hardship on Employee.

SECTION 4. SALARY.

The City Council shall conduct an annual performance evaluation within fifteen ( 15) days ofJanuary 14th each year commencing in 2009. This evaluation shall be completed as a joint effort between Employee and
Employer. Ifdesired, an outside facilitator, to be mutually agreed upon by Employer and Employee, and at Employer' ssole cost, may be utilized. Upon satisfactory completion of this annual performance review, Employer may grant merit increases to the base salary and other benefits to provide to Employee under this Contract. Any such modifications shall be in writing and signed by Employee and Employer.

SECTION 5. ,HOURS OF WORK.

Management leave is fully credited on January 1n of each year and cannot be cashed out or rolled over.

SECTION 6. AUTOMOBILE ALLOWANCE.

SECTION 7. TERMINATION
This Contract shall terminate upon the occurrence of any ofthe following events:

A. The death ofEmployee.

13. The dissolution or bankruptcy ofEmployer.

C. The disability ofEmployee, as defined in Section 3 ofthis Contract.

D. The majority ofthe City Council ofEmployer votes to terminate the Employee at a duly authorized meeting.

E. Ifthe Employer, citizens or legislature act or acts to amend any provision of applicable law that substantially changes the role, powers, duties, authority, or responsibilities ofthe Employee, the Employee shall have the right to declare that such amendments constitute termination.

F. Ifthe Employer reduces the base salary, compensation or any other financial benefit ofthe Employee, unless it is applied in no greater percentage than the average reduction of all department heads, such action shall constitute a breach ofthis Contract and will be regarded as termination.

G. If the Employee resigns following an offer to accept resignation, or a suggestion that Employee resign, whether formal or informal, by any member of the City Council ofEmployer acting as representative ofthe majority ofthe City Council, then the Employee may declare a termination as of the date of the suggestion.

H. Breach of contract declared by either party with a
thirty (30) day cure period for either
Employee orEmployer to be provided. Written notice of a breach of contract shall be provided.

T. Conviction ofEmployee ofany public offense that is a felony, and/ or involves moral
turpitude, and/ orthe punishment for which includes a prohibition of holding public employment.

SECTION 8. CONFIDENTIALITY
A. Unless the Employee expressly requests otherwise in writing the evaluation of the Employee shall at all times be conducted in closed session of the City Council and shall be considered confidential to the maximum and full extent permitted by law. Nothing herein shall prohibit the Employer or the Employee from sharing the content of the City Attorney' s evaluation with their respective legal counsel.

SECTION 9. SEVERANCE PAY
Ifthis Contract is terminated because of the reasons specified in Section 7. C, 7. D, 7.E, 7.F, 7. G, or an uncured breach by Employer pursuant to 7. H, Employer shall pay severance pay to Employee up to a maximum of nine (9) months' salary. Employee may elect to treat the non -renewal ofthe Contract ( as described in Section

2.A) as a termination that entitles him to severance pay in accordance with this Section. A severance bank of six 6) months pay is granted on the 61" day after the Effective Date of this Contract. Employee thereafter shall earn one ( 1) additional month ofseverance per year of service, not to exceed a combined total of nine (9) months severance.

If Employee is terminated by the Employer within the three (3) months preceding or following a General Election where one or more. City Council seats are contested on the ballot of such election (the election cool- offperiod"), then Employee will be granted an additional three ( 3) months severance salary only — no payout on additional benefits or leave accruals) to the severance bank currently earned.

Ifthis contracted is terminated for any reason specified in Section 7 within the first 60 days of employment, Employee will receive three (3) months of severance pay.

Ifthis contract is terminated for any reason specified in Section 7, Employee shall be paid for all accrued and unused sick leave, vacation time, paid holidays;
contribution to PERS, Health Insurance allowance,
and
and
the cash
car allowance.
value ofall
Severance
benefits including
will be paid
employer' s
in monthly
installments equal in number to the number of months' severance due employee pursuant to this Section.

SECTION 11. VACATION AND SICK LEAVE.

Employee will accrue vacation at a rate of fifteen ( 15) days per year. Up to forty (40) hours of unused vacation hours earned may be cashed out. Employee will accrue ninety- six (96) hours of sick leave per year. Up to forty (40) hours of sick leave can be cashed out annually after Employee accrues ninety- six (96) hours. There is no cap on accrual.

SECTION 12. DISABJLrTY. COST- OF- L1VaNG ADJUSTMENTS. HEALTH AND LIFE INSURANCE.

SECTION 13. RETIREMENT,
Employer shall pay Employee' scontribution to the Public Employees Retirement System in accordance with adopted policies ofEmployer.

SECTION 14. DUES AND SUBSCRIPTIONS.

SECTION 15. PROFESSIONAL DEVELOPMENT.

A. Employer shall budget for and pay the travel and subsistence expenses ofEmployee for professional official travel, meetings and occasions ( maximum of three annually) adequate to continue the professional development of Employee and to adequately pursue necessary official and other functions for Employer, including but not limited to the League of Califomia Cities and such other national, regional, stale and local governmental groups and committees thereof of which Employee may serve as a member. Employer shall budget and pay for the travel and subsistence expense ofEmployee for short courses, institutes and seminars necessary for her professional development and for the good of the Employer.

SECTION 16. REIMBURSEMENT OF EXPENSES.

SECTION 17. INDEMNIFICATION.

Employer shall defend, save harmless and indemnify Employee in accordance with Division 3. 6of the California Government Code, commencing with section 810.

SECTION 18. BONDING.

Employer shall bear the full cost ofany fidelity or other bonds required of the Employee under any law or ordinance.

SECTION 19. OTHER TERMS AND CONDITIONS OF EMPLOYMENT.

SECTION 20. NOTICES.

Notices pursuant to this Contract shall be in writing given by deposit in the custody of the United State Postal Service, postage prepaid, addressed as follows:
1) Employer: Mayor, City ofLathrop, 390 Towne Centre Drive, Lathrop, CA 95330 2) Employee: Salvador V. Navarrete, 3378 Lighthouse Court, Atwater, CA 95301 Alternatively, notices required pursuant to this Contract may be personally served in the same manner as is applicable to civil judicial process. Notice shall be deemed given as ofthe date ofpersonal service or as of the date of deposit ofsuch written notice in the course oftransmission in the United States Postal Service.

SECTION 21. GENERAL PROVISIONS.

A. The text herein shall constitute the entire Contract between the parties.

B. Ifthe Employee dies prior to the expiration ofthe term of employment, any monies that may be due to him from Employer wider this Agreement as of the date of his death shall be paid to his beneficiaries or personal representatives.

C. This Contract shall became effective on the date first written above.

Rick Caldeira, City Clerk
APPROVED AS TO FORM:

JO . STOVALL, Interim City Attorney
Salvador V. Navarrete
Amendment Number Two to Employment Agreement Between the Cty of Lathrop and Salvador V. Navarrete
August 8, 2022
The original Employment Agreement between the City of Lathrop and Salvador V. Navarrete, attached hereto and incorporated herein as Exhibit " A", was entered Into between the parties for services of City Attorney on or about January 14, 2008.

On or about November 19, 2018 the City Council unanimously approved Amendment Number One, attached herein as Exhibit " B".

The City Council hereby approves a performance - based increase to current base salary of 5% effective July 11, 2022.

Unless specifically stated above, no other changes to the original agreement ( or Amendments) are intended by this Amendment.

EMPLOYEE CITY OF LATHROP
By:

Salvador V. Navarrete
Date: i'// tin
APPROVED AS TO FORM:

Michael G. Colantuono
Special Counsel
ATTEST:
eresa Vargas, City CI Government Services Director
Sorfny Dhali al, Mayor
Date: Ve/ vi
Attachments:

Exhibit "A" — Employment Agreement for Salvador V. Navarrete effective January , 2008 Exhibit "B" —Amendment Number One to Employment Agreement dated November 19, 2018 EMPi/ ViMEN1 CONTRACT
THIS EMPLOYMENT CONTRACT (" Contract") is made and entered into this 11th day ofDecember, 2007, by and between the City of Lathrop, California, a general law city organized under the laws of the State of California, hereinafter called "Employer," and Salvador V. Navarrete, an individual, hereinafter called Employee," and is effective as ofJanuary 14, 2008 (" Effective Date").

The parties agree as follows:

SECTION 1. DUTIES.

A. General.

Employer hereby employs Employee as City Attorney to perform the functions and duties specified in the laws ofthe State ofCalifornia, the Municipal Code ofthe City of Lathrop, and the Ordinances and Resolutions ofthe City ofLathrop, and to perform such other legally permissible and proper duties and functions as the City Council shall from time to time assign.

B. Description ofDuties.

In amplification of Section 1A. ofthe Contract, Employee shall serve as general counsel and chief legal advisor to employer, and perform all legal duties for Employer, except i) When, in the opinion ofEmployer, it would be more appropriate to hire outside specialist counsel. In such event, Employee shall assist Employer in selecting such outside specialist counsel. Such outside specialist counsel may serve in lieu ofEmployee on any particular matter, or may assist Employee; or
Cu) When counsel for Employer is otherwise provided, as in the case of counsel provided by insurers in connection with various insurance policies held by Employer, or provided by the Risk Management Authority ofwhich Employer is a member; or ili) When a conflict exists such that Employee is prohibited by law or rules of professional conduct from representing oradvising Employer.

C. In further amplification of Section 1. A. ofthis contract, Employee shall, unless excused by Employer, attend all meetings of the City Council and the Plarming Commission of the City ofLathrop, and meetings of such other Boards or Commissions of the City as the City Council may, • from time to time, direct.

D. In Anther amplification of Section 1.Aofthis Contract, it is recognized and agreed that Employee reports to the City Council ofEmployer, and not to the City Manager ofEmployer, but Employee will co- ordinate with the City Manager of Employer to ensure the legal needs ofEmployer are met. Employee shall operationally be considered a department head with all the rights, duties and obligations thereat
SECTION 2. TERM,
A. The term of this Contract shall initially be for five (5) years, commencing as of the Effective Date, and' shall be automatically renewed and extended for an additional five (S) year period at the end of each renewal and extension period, unless either party shall provide written notice ofnon -renewal at least ninety ( 90) days prior to the end ofthe period in which notice is given. In the event Employer declares its intention not to renew and extend this Contract, then Employee, while continuing to perform all of his duties hereunder, may undertake the pursuit of new employment oppornmities.

B. Nothing in this Contract shall prevent, limit, or otherwise interfere with the right of Employee to resign at any time for any reason.

C. Notwithstanding any other provision in this Section 2, this Contract may be earlier terminated in accordance with Section 7 ofthis Contract D. Employee shall remain in the exclusive employ ofEmployer, and shall neither accept other employment nor become employed by any other employer except upon written approval ofEmployer.

B. The term "employed" shall not be construed to include occasional teaching, writing, speaking, or consulting performed during Employee' stime off.

SECTION 3. DISABILITY,
IfEmployee shall, for whatever reason, become incapable of performing any ofthe essential functions of City Attorney, even with reasonable accommodation by Employer, either

1. Permanently, or

2. For a period exceeding the period ofleave available to the Employee under the Family Medical Leave Act or the California Family Rights Act, or accrued sick leave, whichever is lon81er, then Employee shall be deemed to have suffered a disability. Employer and Employee agree that the time period specified in this paragraph 2 is a reasonable accommodation by Employer, and that granting longer time would be an undue hardship on Employee.

SECTION 4. SALARY,
Employer agrees to pay Employee, effective January 14, 2008, for his duties, abase annual salary of one hundred fifty thousand dollars ($ 150, 00) payable in installments at the same time and in the same manner as other Employees of the Employer are paid.

The City Council shall conduct an annual performance evaluation within fifteen ( 15) days of January 14"' each year commencing in 2009. This evaluation shall be completed as a joint effort between Employee and
Employer. Ifdesired, an outside facilitator, to be mutually agreed upon by Employer and Employee, and at Employer' ssole cost, may be utilized. Upon satisfactory completion of this annual performance review, Employer may grant merit increases to the base salary and other benefits to provide to Employee under this Contract. Any such modifications shall be in writing and signed by Employee and Employer.

SECTION 5. HOTJRS OF WORK.

Management leave is hilly credited on January 1' of each year and cannot be cashed out or rolled over.

SECTION 6. AUTOMOBILE ALLOWANCE.

Employer shall receive an automobile allowance of $450. 00 pet month for the general business use of his personal vehicle; however, Employer shall also reimburse Employee at the IRS standard mileage rate for any business use of his personal vehicle for any single business trip totaling more than 100 miles.

SECTION 7. TERMINATIQN
This Contract shall terminate upon the occurrence of any ofthe following events:

A. The death ofEmployee.

B. The dissolution or bankruptcy ofEmployer.

C. The disability ofEmployee, as defined in Section 3 of this Contract D. The majority ofthe City Council ofEmployer votes to terminate the Employee at a duly authorized meeting.

E. If the Employer, citizens or legislature act or acts to amend any provision ofapplicable law that substantially changes the role, powers, duties, authority, or responsibilities ofthe Employee, the Employee shall have the right to declare that such amendments constitute termination.

F. If the Employer reduces the base salary, compensation or any other financial benefit ofthe Employee, unless it is applied in no greater percentage than the average reduction of all department heads, such action shall constitute a breach ofthis Contact and will be regarded as termination.

G. Ifthe Employee resigns followingan offer to accept resignation, or a suggestion that Employee resign, whether formal or informal, by any member ofthe City Council of Employer acting as representative ofthe majority ofthe City Council, then the Employee may declare a termination as of the date of the suggestion.

H. Breach of contract declared by either party with a thirty (30) day cure period for either Employee or Employer to be provided. Written notice of a breach ofcontract shall be provided.

L Conviction of Employee ofany publics offense that is a felony, and/ or involves moral turpitude, and/ or the punishment for which includes a prohibition of holding public employment.

SECTION 8. CONFIDENTIALITY
A. Unless the Employee expressly requests otherwise in writing; the evaluation of the Employee shall at all times be conducted in closed session of the City Council and shall be considered confidential to the maximum and full extent permitted by law. Nothingherein shall prohibit die Employer or the Employee from sharing the content of the City Attorney' s evaluation with their respective legal counsel.

B. In the event of termination or resignation, the Employer and Employee agree not to make comments or statements about each other and shall respond to inquiries by only confirming that such termination or resignation occurred. In addition, the Employer and Employee agree not to discuss the circumstances surrounding employment and termination with any person other than their respective legal counsel, including but not limited to members ofthe media, public, and City staff.

SECTION 9. SEVERANCE PAY
Ifthis Contract is terminated because of the reasons specified in Section 7. C, 7. D, 7.E, 7.F, 7. G, or an uncured breach by Employer pursuant to 7. H, Employer shall pay severance pay to Employee up to a maximum of nine (9) months' salary. Employee may elect to treat the non -renewal of the Contract ( es described in Section

2.A) as a termination that entitles him to severance pay in accordance with this Section. A severance bank of six 6) months pay is granted on the 61' day after the Effective Date ofthis Contract. Employee thereafter shall earn one (1) additional month of severance per year of service, not to exceed a combined total ofnine ( 9) months severance.

IfEmployee is terminated by the Employcz within the three (3) months preceding or following a General Election where one or more City Council seats are contested on the ballot of such election ( the election cool- offperiod"), then Employee will be granted an additional three (3) months severance salary only — no payout on additional benefits or leave accruals) to the severance bank currently earned.

Ifthis contracted is terminated for any reason specified in Section 7 within the first 60 days of employment, Employee will receive three ( 3) months of severance pay.

Ifthis contract is terminated for any reason specified in Section 7, Employee shall be paid for all accrued and unused sick leave, vacation time, paid holidays; and the cash value of all benefits contribution to PERS, Health Insurance allowance, and car allowance. Severance including
will be paid
employer' s
in monthly
installments equal in number to the number of months' severance due employee pursuant to this Section.

SECTION 10. NOTICE TO RESIGN
Employee may terminate this Contract by providing written notice to the City at least thirty (30) days prior to the effective date ofresignation. The City shall have no further obligation to provide payments and benefits after the effective date of the resignation. The City requests that Employee provide auk (6) to twelve (12) months advance notice in the event that he determines to retire from service.

SECTION 11. VACATION AND SICK LEAVE,
Employee will accrue vacation at a rate offifteen (15) days per year. Up to forty (40) hours ofunused vacation hours earned may be cashed out. Employee will accrue ninety- six (96) hours ofsick leave per year. Up to forty (40) hours of sick leave can be cashed out annually after Employee accrues ninety- six (96) hours. There is no cap on accrual.

SECTION 12. D 4 IL1TY, CAST- OF- L1VIl idAD r,T 1gNTS HRSY rH A T •rte

INSURANCE, -
Employee shall bo provided the same disability, COLA ac} justmonts ( beginning with 2008 adjustment), health, dental, vision and life insurance benefits that are presently provided to other management employees of Employer and any such increases to benefits will not require City Council action to be effective. Employer will contribute $ 1, 620 per month towards Employee' scafeteria plan.

SECTION 13. RETIREMENT,
Employer shall pay Employee' scontribution to the Public Employees Retirement System in accordance with adopted policies ofEmployer.

SECTION 14. DUES AND SUBSCRIP' IIQNS.

SECTION 15. PROFESSIONAL DEVELOPMENT.

A. Employer shall budget for and pay the travel and subsistence expenses ofEmployee for professional official travel, meetings and occasions ( maximum ofthree annually) adequate to continue the professional development ofEmployee and to adequately pursue necessary official and other functions for Employer, including but not limited to the League ofCalifornia Cities and such other national, regional, state and local governmental groups and committees thereof of which Employee may serve as a member. Employer shall budget and pay for the travel and subsistence expense ofEmployee for short courses, institutes and seminars necessary for her professional development and for the good of the Employer.

SECTION 16. REIMBURSEMENT OF EXPENSES.

To the extent Employee necessarily incurs expenses in the performance of her duties, Employee will receive prompt reimbursement therefore. Employee shall submit a claim form to Employer in the form and manner required ofany employee. The requirement for a claim form shall apply to mileage reimbursement under Section 6 ofthis Contract.

SECTION 17. MEMNIFICATION.,
Employer shall defend, save harmless and indemnify Employee in accordance with Division 3. 6 of the California Government Code, commencing with section 810.

SECTION 18. BONDING.

Employer shall bear the full cost ofany fidelity or other bonds required ofthe Employee under any law or ordinance.

SECTION 19. OTHER TERMS AND CONDITIONS OF EMPLOYMENT.

Unless otherwise specifically provided herein, all provisions of the Municipal Code and regulations and rules ofEmployer including but not limited to those relatingto vacation and sick leave, retirement system contributions, holidays and other fringe benefits and working conditions, as they now exist or hereafter may be amended also shall apply to Employee as they would to other unrepresented employees of the Employer.

SECTION 20. NOTICES.

Notices pursuant to this Contract shall be in writing given by deposit in the custody ofthe United State Postal Service, postage prepaid, addressed as follows:
1) Employer: Mayor, City ofLathrop, 390 Towne Centre Drive, Lathrop, CA 95330 2) Employee: Salvador V. Navarrete, 3378 Lighthouse Court, Atwater, CA 95301 Alternatively, notices required pursuant to this Contract may be personally served in the same manner as is applicable to civil judicial process. Notice shall be deemed given as ofthe date of personal service or as ofthe date ofdeposit ofsuch written notice in the course oftransmission in the United States Postal Service.

SECTION 21. GENERAL PROVISIONS.

A. The text herein shall constitute the entire Contract between the parties.

B. Ifthe Employee dies prior to the expiration ofthe term ofemployment, any monies that may be due to him from Employer under this Agreement as ofthe date of his death shall be paid to his beneficiaries or personal representatives.

C. This Contract shall become effective on the date first written above.

D. If any provision, orany portion thereof, contained in this Contract is held umconsli onal, invalid or unenforceable, the remainder ofthis Contract, or portion thereof shall be deemed severable, shall not be affected and shall remain in full force and effect.

IN WITNESS WHEREOF, the City ofLathrop has caused this Contract to be signed and executed in its behalf by its Mayor and duly attested by its City Clerk, and the Employee has signed and executed this Contract, both in duplicate, the day and year first above written.

Rick Caldeira, City Clerk
APPROVED AS TO FORM:

Salvador V. Navanrete
Amendment Number One to Employment Agreement Between the City of Lathrop and Salvador V. Navarrete
November 19, 2018
The original Employment Agreement between the City of Lathrop and Salvador V. Navarrete, attached hereto and incorporated herein as Exhibit "A", was entered into between the parties for services of City Attorney on or about January 14, 2008.

The Employment Agreement has automatically renewedin January of 2013 and January of 2018 pursuant to the conditions as described in Section 2 of the Employment Agreement, attached hereto and incorporated herein as Exhibit "B".

The City Council has met and with a vote of 4-0, with Councilmember Dresser absent, approves the following amendment to the Employment Agreement, effective November 19, 2018:

1. Increase current base salary by 5%; and

2. IfEmployee resigns his position, he will be paid for all accrued and unused management leave, sick leave and vacation time.

Unless specifically stated above, no other changes to the original agreement ( or Amendment One) are intended by this Agreement.

EMPLOYEE CITY OP LATHROP
By: •-•-•
Salvador V. Navarrete Sonny Dhaliwal, Mayor
Date: I /- 141—/ ) 8° Date: / ( 7/ ffie
APPROVED AS TO FORM:
dee- pai, 4;;;,..,
ATTEST:

Vargas, CityCl
Attachments:

Exhibit " A" — Employment Agreement for Salvador V. Navarrete effective January 14, 2008.

IV
Amendment Number One to Employment Agreement Between the City of Lathrop and Salvador V. Navarrete
November 19, 2018
The original Employment Agreement between the City ofLathrop and Salvador V. Navarrete, attached hereto and incorporated herein as Exhibit " A", was entered into between the parties for services of City Attorney on or about January 14, 2008.

The Employment Agreement has automatically renewed in January of 2013 and January of 2018 pursuant to the conditions as described in Section 2 ofthe Employment Agreement, attached hereto and incorporated herein as Exhibit " B".

The City Council' has met and with a vote of4-0, with Councilmember Dresser absent, approves the following amendment to the Employment Agreement, effective November 19, 2018:

1. Increase current base salary by 5%; and

2. IfEmployee resigns his position, he will be paid for all accrued and unused management leave, sick leave and vacation time.

Unless specifically stated above, no other changes to the original agreement ( or Amendment One) are intended by this Agreement.

EMPLOYEE CITY OF LATHROP
By: By:

Salvador V. Navarrete Sonny Dhaliwal, Mayor
Date: Date:

APPROVED AS TO FORM:
14,( G• ColnNfw" AI,
ATTEST:
3` o CC + I
Teresa Vargas, City Clerk
Attachments:

Exhibit " A" — Employment Agreement for Salvador V. Navarrete effective January 14, 2008.

Amendment Number Three to Employment Agreement Between the City of Lathrop and Salvador V. Navarrete
August 14, 2023
The original Employment Agreement between the City of Lathrop and Salvador V. Navarrete, attached and incorporated herein as Exhibit " A," was entered into between the parties for services of City Attorney on or about January 14, 2008.

On or about November 19, 2018, the City Council approved Amendment Number One, which is attached and incorporated herein as Exhibit " B."
On or about August 8, 2022, the City Council approved Amendment Number Two, which is attached and incorporated herein as Exhibit " C."
The City Council hereby approves an amendment to the first paragraph of Section 9 to read as follows:

If this Contract is terminated because of the reasons specified in Section 7. C, 7. D, 7. E,

7. F, 7. G, or an uncured breach by Employer pursuant to 7. H, Employer shall pay severance pay to Employee of twelve ( 12) months of salary. Employee may elect to treat the non - renewal of the Contract ( as described in Section 2.A) as a termination that entitles him to severance pay in accordance with this Section. This provision shall be limited by the requirements of Government Code sections 53260 and 53621.

The City Council hereby further approves the deletion of the third paragraph of Section 9.

Unless specifically stated above, no other changes to the original agreement ( or Amendments) are intended by this Amendment.

EMPLOYEE i CITY OF LATH
By:

Salvador V. Navarrete
Date: 6 - / r-ZOZ- 3
APPROVED AS TO FORM:
pecial Couns
Bv:

Paul Ak ice Mayo
Date: $// ill 23
ATTEST:
eresa Vargas, City Clerk/ ernment Services Manager
Attachments:

Exhibit " A" — Employment Agreement for Salvador V. Navarrete effective January, 2008 Exhibit " B" — Amendment Number One to Employment Agreement dated November 19, 2018 Exhibit " C" —Amendment Number Two to Employment Agreement dated August 8, 2022 Docusign Envelope ID: EC109194- 0O3E- 4652- 8EDA- 4A1C43429B98 Attachment F
Amendment Number One to Employment Agreement Between
The City of Lathrop and Stephen Sealy
September 9, 2024
The original Employment Agreement between the City of Lathrop and Stephen Sealy, attached hereto and incorporated herein as Exhibit " A", was entered into between the parties for services of Interim Police Chief and Police Chief on or about November 13, 2023.

The City Council hereby approves an amendment to Section 3 to provide a 3% merit increase to base salary effective July 6, 2024 and replace the second paragraph to read as follows:

The City Council shall conduct an annual performance evaluation in accordance with the City' s
Annual Performance Review Process for Council -Appointed Positions. This evaluation shall be completed as a joint effort between Employee and Employer. If desired, an outside facilitator, to be mutually agreed upon by Employer and Employee, and at Employer' ssole cost, may be utilized. On an annual basis, Employer may grant merit increases to the base annual salary and provide other benefits to Employee under this Contract at its discretion.

Unless specifically stated above, no other changes to the original agreement are intended by this Amendment.

EMPLOYEE CITY OF LATHROP
By: By:

Stephen Sealy Sonny Dhaliwal, Mayor
Date: Date:

APPROVED AS TO FORM:

DocuSigned by:
n&iOla W l/A r0
Yor0007611oo4M_.

Michael G. Colantuono, Special Counsel
ATTEST:

Teresa Vargas, City Clerk/ Government Services Director Attachments:

Exhibit " A" — Employment Agreement for Stephen Sealy effective November 13, 2023 373007. 1
Attachment G

EMPLOYMENT AGREEMENT
THIS EMPLOYMENT AGREEMENT (" Contract") is made and entered into this 13 day of November, 2023, by and between the City of Lathrop, California, a general law city organized under the laws of the State of California, hereinafter called " Employer," and Stephen Sealy, an individual, hereinafter called " Employee," and is effective as of November 13, 2023 (" Effective Date").

The parties agree as follows:

SECTION 1.. DUTIES.

Employer hereby employs Employee as the Interim Chief of Police (" Chief of Police") to perform the functions and duties specified in the laws of the State of California, the Municipal Code of the City of Lathrop, and the Ordinances and Resolutions of the City of Lathrop, and to perform such other legally permissible and proper duties and functions as the City Council shall from time to time assign. Due to the POST institutional timelines that are unrelated to his qualifications or performance, the Interim" designation shall be removed, this shall occur no later than March 1, 2024.

For purposes of this agreement, the Interim designation does not affect the terms or conditions of this agreement.

SECTION 2. TERM.

A. The term of this Contract shall initially be for four ( 4) years, commencing as of the Effective Date, and shall be automatically renewed and extended for additional four ( 4) year periods at the end of each four year period, unless either party shall provide written notice of non - renewal at least ninety ( 90) days prior to the end of the period in which notice is given.

B. Nothing in this Contract shall prevent, limit, or otherwise interfere with the right of Employee to resign as the Chief of Police or as an employee of the City at any time for any reason.

C. Employee shall remain in the exclusive employ of Employer, and shall neither accept other employment nor become employed by any other employer except upon written approval of Employer.

D. The term " employed" shall not be construed to include occasional teaching, writing, speaking, or consulting performed during Employee' stime off.

E. Employee' sinitial date of hire was February 22, 2022, but this Agreement is effective as the Effective Date specified above.

Page 1 ends

12227854. 1LA140- 001
SECTION 3. SALARY.

Employer agrees to pay Employee, commencing with the Effective Date for his Interim Chief of Police duties, the base annual salary of two hundred thirty- six thousand three hundred seventy- nie ($236, 379), and commencing on March 1, 2024, for his Chief of Police duties, the base annual salary of two hundred forty- eight thousand one hundred ninety ($ 248, 190), payable in installments at the same time and in the same manner as other Employees of the Employer are paid.

On the one ( 1) year anniversary of the Effective Date, the City Council shall conduct an annual performance evaluation. This evaluation shall be completed as a joint effort between Employee and Employer. If desired, an outside facilitator, to be mutually agreed upon by Employer and Employee, and at Employer' ssole cost, may be utilized. On the subsequent anniversaries, Employer may grant merit increases to the base annual salary and provide other benefits to Employee under this Contract at their discretion.

SECTION 4. HOURS OF WORK.

It is recognized that Employee must devote a great deal of time outside normal office hours to business of Employer. To that end, Employee will be granted management leave of one hundred and twenty ( 120) hours of management leave per calendar year. Management leave is fully credited on January 1st of each year.

SECTION 5. VEHICLE AND CELL P IONS,
Employee shall receive a City unmarked police vehicle for use during the regular course and scope of his duties, and also for anticipated off duty usage, and Employee, at his option, will receive a City -issued cellular phone or a cellular phone allowance.

Normal off duty usage of the city vehicle and cell phone by the Chief is anticipated due to the significant amount of time expected from the Chief outside of his normal work hours.

SECTION 6. UNIFORM ALLOWANCE.

Employer will provide Employee with an annual uniform allowance on the same terms as provided to other peace officers for the department.

SECTION 7. TERMINATION.

This Contract shall terminate upon the occurrence of any of the following events:

A. The death of Employee.

B. The dissolution or bankruptcy of Employer.

C. The disability of Employee, as defined herein.

Page 1 ends

12227854. 1 LA140- 001
D. The majority of the City Council of Employer votes to terminate the Employee at a duly authorized meeting. Except for non - renewal of contract pursuant to 2A, the Employer however shall not terminate Employee within a " cooling off period of ninety ( 90) days either before or after an election for which a City Council Member is elected. Pursuant to Government Code section 3304, subsection ( c), the City Council must provide written notice of termination that specifies the reason( s) for termination. It shall be sufficient if the City Council provides as a reason for termination that there has been a change in administration; that there is an incompatibility of management styles; and/ or that the termination is for purpose of implementing the goals or policies of the City.

H. Breach of contract declared by either party with a thirty ( 30) day cure period for either Employee or Employer to be provided. Written notice of a breach of contract shall be provided.

I. Conviction of Employee of any public offense that is a felony, and/ or involves moral turpitude, and / or the punishment for which includes a prohibition of holding public employment.

SECTION 8. CONFIDENTIALITY,
Unless the Employee expressly requests otherwise in writing, the evaluation of the Employee during his service as Chief of Police shall at all times be conducted in closed session of the City Council and shall be considered confidential to the full extent permitted by law. Nothing herein shall prohibit the Employer or the Employee from sharing the content of Employee' sevaluation with their respective legal counsel.

SECTION 9. SEVERANCE PAY.

Subject to the requirements of Government Code sections 53260 and 53261, if this Contract is terminated pursuant to Section 7, Paragraph B, D, E, F, G or City breach of Contract, Employer shall pay severance to Employee in the amount up to Nine ( 9) months' salary.

Page 1 ends

12227854. 1LA140- 001
Instead of nine months of severance pay in accordance with this Section, Employee may elect to treat the non - renewal of the Contract ( as described in herein and in Section 2) as a termination that entitles him to three ( 3) months' severance pay in addition to regular pay during the 90 day notice period of non - renewal referenced in Section 2A.

If this contract is terminated for any reason specified herein, Employee shall be paid for all accrued and unused sick leave, vacation time, paid holidays; and the value of all benefits including employer' s contribution to PERS, and Health Insurance allowance. Severance will be paid in one payment within 30 days of termination.

Employee agrees to provide the City with a full and complete release and waiver of any claims in exchange for severance pay.

SECTION 10. NOTICE TO RESIGN,
Employee may terminate this Contract by providing written notice to the City at least thirty ( 30) days prior to the effective date of resignation. The Employer shall have no further obligation to provide payments and benefits to Employee for his service as Chief of Police after the effective date of the resignation except for all accrued and unused management leave, sick leave and vacation time. The City requests that Employee provide six ( 6) to twelve ( 12) months advance notice in the event that he determines to retire from service.

SECTION 11. INDEMNIFICATION.

Employer shall defend, save harmless and indemnify Employee in accordance with Division 3. 6 of the California Government Code, commencing with section 810.

SECTION 12. BONDING.

Employer shall bear the full cost of any fidelity or other bonds required of the Employee under any law or ordinance.

SECTION 13. DISABILITY, ADJUSTMENTS, HEALTIj AND LIFE
INSURANCE. COST -OF -LIVING. VACATION AND SICK
LEAVE.

Unless otherwise specifically provided herein, all provisions of the Municipal Code and regulations and rules of Employer relating to vacation and sick leave, retirement system contributions, holidays and other fringe benefits and working conditions as they now exist or hereafter may be amended also shall apply to Employee as they would to other unrepresented employees of the Employer. An annual cost of living increase adjustment shall be applied to the base annual salary going forward to Employee as established for all other non - represented employees. Employee will accrue vacation and sick leave at a rate as outlined in the City' s Administrative Policies Manual based on his initial hire date. Additionally, Employee may cash out up to forty ( 40) hours of sick leave annually, in addition to cashing out forty ( 40)

Page 1 ends

12227854. 1 LA140- 001
hours of accrued vacation hours per year, pursuant to Personnel Rule & Regulation Rule 7.2(D).

Employer will contribute $ 2, 429 per month, in the 2023 calendar year, commencing with the Effective Date and $ 2, 525 in calendar year 2024, towards Employee' shealth, dental, and vision insurance benefits, and any such increase to benefits provided to other management employees. Additionally, Employer will continue to provide 5, 000 annually towards deferred compensation.

SECTION 14. RETIREMENT,
Employer shall pay Employee' scontribution to the Public Employees Retirement System in accordance with adopted policies of Employer.

SECTION 15. NOTICES.

Notices pursuant to this Contract shall be in writing given by deposit in the custody of the United States Postal Service, postage prepaid, addressed as follows:
1) Employer: Mayor, City of Lathrop, 390 Towne Centre Drive, Lathrop, CA 2) Employee: At his address as reflected in his personnel records of the City.

SECTION 16. GENERAL PROVISIONS.

A. The text herein shall constitute the entire Contract between the parties.

Page 5 ends

12227854. 1LA140- 001
IN WITNESS WHEREOF, the City of Lathrop has caused this Contract to be signed and executed in its behalf by its Mayor and duly attested by its City Clerk, and the Employee has signed and executed this Contract, both in duplicate, the day and year first above written.

SECTION 17. SIGNATURES.

EMPLOYEE
Date: November 13, 2023

CITY OF LATHROP
Sonny` Dhiwal, Mayor
Date: November 13, 2023
APPROVED AS TO FORM: ATTEST:

Salvador Navarrete, City Attorney resa Vargas, Ci lerk

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12227854. 1LA140- 001

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Lathrop City CouncilSeptember 9, 2024

Lathrop City Council
September 9, 2024