TO: MAYOR AND CITY COUNCIL MEMBERS, CITY OF CHINO
FROM: FRED GALANTE, CITY ATTORNEY
SUBJECT
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First Amendment to City Manager’s Employment Agreement.
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RECOMMENDATION
Approve the First Amendment to the City Manager’s Employment Agreement and Adopt Resolution No. 2024-043 Approving an Amendment to the City’s Classification and Compensation Schedule.
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FISCAL IMPACT
For FY 2024-25, there is an ongoing increased cost of $51,965 to be paid with General Fund salary savings.
CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES
The recommendation detailed above further the City’s values and strategic issues that serve as key pillars on which identified priorities, goals, and action plans are built, by fostering:
• Positive City Image
• Superior Customer Service
• Financial Stability
• Responsible Long-Range Planning
• Exemplary Leadership
• Public Service Excellence through Internal and External Partnerships
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Expenditure: General Fund 100 |
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BACKGROUND
On August 8, 2022, Dr. Linda Reich commenced services as the City Manager of the City, pursuant to the terms and conditions of the City of Chino’s At-Will City Manager Employment Agreement (“Agreement”). The term of the Agreement is for five years, from August 8, 2022 through August 7, 2027.
The City Council and City Manager recently negotiated and agreed to the terms amending the Agreement, and the City Council directed the City Attorney to prepare a First Amendment to the Agreement (“First Amendment”). The terms of the First Amendment are summarized below and the First Amendment is attached to this staff report.
On July 16, 2024, the City Council held a closed session to consider the City Manager’s performance review and labor negotiations related to her contract in accordance with the closed session agenda. Following the City Council’s deliberations in closed session, the City Attorney reported out the City Council’s approval of revisions to the Agreement, as described below.
ISSUES/ANALYSIS
Consistent with City Council’s July 16, 2024 decision, the First Amendment incorporates the following:
i) Revises Section 1.2 of the Agreement to accurately reflect Dr. Reich’s work schedule;
ii) Increases Dr. Reich’s salary by fifteen percent (15%) to $348,160 effective August 8, 2024;
iii) Revise the severance due in the event of termination without cause prior to August 8, 2025 from 6 months to 7.5 months, and to 9 months in the event of termination without cause on or after August 8, 2025; and
iv) Provide for a “Holiday Leave Bank” of 155 hours each fiscal year in lieu of Dr. Reich being provided designated holidays and floating holidays.
With this action, the City Council will approve the first amendment to the City Managers employment agreement that includes the terms approved by the City Council on July 16, 2024. Also included for approval is Resolution 2024-043 to amend the City Classification and Salary Schedule to reflect the updated City Manager salary in the salary schedule.
Attachments - First Amendment to the City Managers Employment Agreement
Resolution 2024-043