AMENDMENT NO. 2 TO THE
CITY MANAGER EMPLOYMENT AGREEMENT
BETWEEN THE CITY OF RIALTO & MARCUS FULLER
This AMENDMENT NO. 2 TO THE EMPLOYMENT AGREEMENT BETWEEN THE CITY OF RIALTO AND MARCUS FULLER (the “Second Amendment”) is made and entered into May 26, 2022, by and between the CITY OF RIALTO, a general law city and municipal corporation (the “CITY”) and Marcus L. Fuller, an individual (“FULLER”).
RECITALS
WHEREAS, on May 25, 2021, the CITY entered into the Employment Agreement Between the CITY and FULLER (the “Agreement”); and
WHEREAS, on October 26, 2021, the CITY entered into Amendment No. 1 to the Employment Agreement Between the CITY and FULLER to revise certain terms and conditions to reflect the benefits received by FULLER will be those certain benefits generally applicable to Executive Team Management employees in accordance with the Executive Benefits Profile adopted by the City Council on September 22, 2020 by Resolution No. 7671, except as otherwise stated in the Agreement; and
WHEREAS, pursuant to Section 2.1 [Base Salary], CIT Y agrees that FULLER’s base salary shall maintain a separation of at least ten percent (10%) from the base salary of the next most highly compensated exempt employee of City; and
WHEREAS, pursuant to Section 2.2 [Adjustments to Compensation] of the Agreement, any adjustment in compensation related to a cost-of-living adjustment (aka “COLA”) shall be solely at the discretion of the City Council, and subject to affirmative vote of at least three members of the City Council voting on the item at a duly noticed and agendized public meeting; and
WHEREAS, on May 10, 2022, the City Council approved a five percent (5%) COLA for the CITY’s unrepresented employees retroactive to July 1, 2021, and five percent (5%) prospectively effective July 1, 2022, and adopted by Resolution No. 7880 implementing revisions to the Executive Benefits Profile; and
WHEREAS, on May 26, 2022, the City Council adjusted the previously approved COLAs for the City’s unrepresented employees to six percent (6%) retroactive to July 1, 2021, and six percent (6%) prospectively effective July 1, 2022; and
WHEREAS, this Second Amendment will clarify that the benefits received by FULLER will be those certain benefits generally applicable to Executive Team Management employees in accordance with the Executive Benefits Profile adopted by the City Council on May 10, 2022, by Resolution No. 7880, except as otherwise stated in the Agreement; and
WHEREAS, this Second Amendment will implement the COLAs to FULLER’s base salary consistent with the COLAs granted to the CITY’s unrepresented employees; and
WHEREAS, CITY and FULLER now desire to amend the Agreement through this Second Amendment.
NOW, THEREFORE, in consideration of the mutual covenants contained herein, CITY and FULLER hereby agree as follows:
AGREEMENT
SECTION 1. The above recitals are incorporated by reference as if set forth in full herein.
SECTION 2. Section 2.1 [ Base Salary] of the Agreement is hereby amended to include the following two paragraphs:
Effective July 1, 2021, FULLER shall receive a Cost -of-Living Adjustment (“COLA”) equivalent to six percent (6%). Accordingly, effective July 1, 2021, FULLER shall receive an annual base salary of Two Hundred Ninety -One Thousand Five Hundred Dollars and No Cents ($291,500.00). FULLER shall receive any applicable retroactive amount of adjusted base salary in accordance with CITY’s payroll processes for such retroactive pay and shall receive prospective pay on a pro- rated basis according to the bi -weekly payroll schedule in place for CITY employees.
Effective July 1, 2022, FULLER shall receive a Cost -of-Living Adjustment (“COLA”) equivalent to six percent (6%). Accordingly, effective July 1, 2022, FULLER shall receive an annual base salary of Three Hundred Eight Thousand Nine Hundred Ninety Dollars and No Cents ($ 308,990.00) paid on a pro-rated basis according to the bi-weekly payroll schedule in place for CITY employees.
SECTION 3. The introductory paragraph of Section 2.3 [Benefits] of the Agreement is hereby amended to read in its entirety as follows:
CITY intends to provide FULLER benefits generally consistent with those provided to members of the CITY’s Executive Team Management employees in accordance with the Executive Benefits Profile adopted by the City Council on May 10, 2022, by Resolution No. 7880, except as expressly stated herein to the contrary. The benefits to be provided to FULLER are as follows:
SECTION 4. Section 2.3.7 [Retirement] of Section 2.3 [Benefits] of the Agreement is hereby amended to read in its entirety as follows:
(a) Benefit Formula and Employee Contribution. CITY intends to maintain its current retirement plan with the State of California's Public Employees Retirement System (“CalPERS”) and to include FULLER thereunder as a “classic” member under CalPERS 2.7% at 55 years of age formula for miscellaneous employees with Level 4 Survivor Benefits. As a “classic” employee not considered a “new member” (as defined in Government Code Section 7522.04(f), or its successor), FULLER shall pay eight percent (8%) of his salary towards the employer’s share of CalPERS contributions.
Following any required contract amendments with CalPERS, contributions made by FULLER described above that are towards the employer's share shall be in accordance with IRS Code Section 414(h)(2) (or its successor) whereby employee contributions to the employer's share of PERS are tax deferred (not subject to taxation until time of constructive receipt) so long as allowed by applicable law.
(b) Employer-Paid Member Contributions (EPMC) . CITY will report as compensation for retirement purposes the E mployer Paid Member Contribution of eight percent (8%) for “classic” miscellaneous members.
(c) CalPERS COLA. The CITY contracts with CalPERS to provide (up to) a two percent (2%) COLA for miscellaneous member retirees.
SECTION 5. Except as expressly amended by this First Amendment, the underlying terms and conditions of the Agreement shall remain in full force and effect.
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IN WITNESS WHEREOF, CITY has caused this Second Amendment to be signed and executed on its behalf by its Mayor, and duly attested by its officers thereunto duly authorized, and FULLER has signed and executed this Second Amendment.
CITY OF RIALTO
Deborah Robertson, Mayor
ATTEST:
Barbara McGee, City Clerk
APPROVED AS TO FORM:
Eric Vail, City Attorney
FULLER
Marcus L. Fuller