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FROM:
Agenda Report
October 21,2024
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City Council
Mayor Victor M. Gordo
SUBJECT: APPROVE A SECOND AMENDMENT TO EMPLOYMENT AGREEMENT
FOR CITY MANAGER
RECOMMENDATION:
It is recommended that the City Council:
1. Find that the proposed action in the agenda report is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA guidelines Section 15061(b)(3) "Common Sense" exemption; and
2. Approve a second amendment to the employment agreement for City Manager Miguel Marquez to provide an increase to salary and the classification's salary control rate. It is further recommended that the Mayor be authorized to sign the second amendment to the employment agreement to reflect City Council- approved changes.
BACKGROUND:
On July 11, 2022, the City entered into an employment agreement (Contract No. 23,680) with Miguel Marquez as City Manager. The agreement commenced on August 29, 2022 and was modified one time on November 13, 2023 (Contract No. 23,680-1).
As a result of the City Manager's recently completed performance evaluation covering 2023-2024, the Council recommends approving the attached second contract amendment (Contract No. 23,680-2) for Miguel Marquez with the following modifications:
1. Compensation/Salary - Effective July 15, 2024, the City Manager will be paid a base annual salary of $378,241 representing a 4% general wage increase, and the salary control rate for the City Manager classification shall also be $378,241.
This aligns with the effective date and salary increase other non-represented employees received as part of the non-represented Salary Resolutions. }
MEETING OF10/21/2024AGENDA ITEM NO.12
Second Amendment to City Manager Employment Agreement
October 21,2024
Effective August 26, 2024, the City Manager will be paid a base annual salary of $423,630 representing a 12% merit/salary adjustment, and the salary control rate for the City Manager classification shall also be $423,630. The increase takes into consideration the regional labor market, internal salary differentials between the position and direct reports, and his performance, which continues to exceed expectations.
2. Bonus Pay - The City Manager will receive a one-time, lump sum payment of $50,836 (12% of salary) in recognition of his superior performance and accomplishments during this evaluation period.
COUNCIL POLICY CONSIDERATJON:
The approval of the amendment to the employment agreement supports the City Council's strategic goal of maintaining fiscal responsibility and stability.
Second Amendment to City Manager Employment Agreement
October 21,2024
FISCAL IMPACT:
The approval of the amendment to the employment agreement for the City Manager is estimated to have an overall FY 2025 fiscal impact of $108,000 which includes a one- time cost of $50,836. This position is budgeted to the General Fund (101), and the City Manager Department's FY 2025 Operating Budget includes appropriations for anticipated wage increases. However, staff will monitor personnel expenses and request additional appropriations during the fiscal year if necessary.
Respeptfully Submitted,
-^M.
'R M.JGORDOVICTOR
Mayor
Prepared by:
tiffany Jac^obs-Quinn
hkuTia£L^6sources Director
Attachments:
Attachment A - Second Amendment to City Manager Employment Agreement