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CC - Item 6B – Approval of Third Amendment to City Manager Employment Agreement and Approval of Salary Schedule Resolution No. 2025-26ROSEMEAD CITY COUNCIL STAFF REPORT TO: THE HONORABLE MAYOR AND CITY COUNCIL FROM: RACHEL RICHMAN, CITY ATTORNEY DATE: JUNE 10, 2025 SUBJECT: APPROVAL OF THIRD AMENDMENT TO CITY MANAGER EMPLOYMENT AGREEMENT AND APPROVAL OF SALARY SCHEDULE RESOLUTION NO.2025-26 DISCUSSION The City and the City Manager entered into an Employment Agreement ("Agreement") on April 26, 2022. Section 6 of the Agreement permits the City Council to conduct performance evaluations and grant increases in salary. Pursuant to Section 6(c) of the Agreement, the City Council conducted the City Manager's performance evaluation on April 23, 2025, and the City Manager received a "substantially exceeds expectations" rating. On May 13, 2025, the City Council conducted a closed session on compensation and directed that an amendment to the Agreement be provided to the Council for consideration of approval for a 12% salary increase effective May 13, 2025, from $256,992 to the amount of $287,832. As required by Government Code 54953(c)(3) prior to final action on the City Manager's salary or compensation and benefits there must be an oral report of the change. The City Attorney will orally report the changes as required. FISCAL IMPACT The annualized fiscal impact of awarding the 12% City Manager salary increase to $287,832 in addition to related benefits amount to approximately $34,900. Current fiscal year cost will be absorbed by the City Manager's Office existing budget. STAFF RECOMMENDATION That the City Council take the following actions: 1. Authorize the Mayor to execute the Third Amendment to City Manager Agreement with Ben Kim on behalf of the City Council. 2. Approve Resolution No. 2025-26, amending the Comprehensive Salary Schedule for Fiscal Year 2024-25 effective May 13, 2025. AGENDA ITEM 6.B 4905-7683-5141 vl City Council Meeting June 10, 2025 Page 2 of 2 STRATEGIC PLAN IMPACT - None PUBLIC NOTICE PROCESS This item has been noticed through the regular agenda notification process. Attachment A: Third Amendment to the City Manager Employee Agreement Attachment B: Resolution No. 2025-26 - amending the Comprehensive Salary Schedule for Fiscal Year 2024-25 effective May 13, 2025 4905-7683-5141 vl Attachment A Employment Agreement THIRD AMENDMENT TO CITY MANAGER EMPLOYMENT AGREEMENT BETWEEN THE CITY OF ROSEMEAD AND BEN KIM AMENDMENT NO.3 This Third Amendment to the City Manager Employment Agreement between the City of Rosemead and Ben Kim, an Individual (the "Third Amendment") is made and entered into effective May 27, 2025, by and between the City of Rosemead, California, a municipal corporation (the "City") and Ben Kim, an individual (the "City Manager"). The City and the City Manager are sometimes individually referred to as a "Party" and collectively as "Parties." RECITALS A. The Parties entered into an Employment Agreement (the "Agreement") on April 26, 2022. B. On May 27, 2024, the City Council approved the Second Amendment to the Agreement. C. On April 23, 2025, the City Council conducted the City Manager's performance evaluation. The City Manager received a "substantially exceeds expectations" review. On May 13, 2025, the City Council conducted a closed session to negotiate compensation and directed a contract amendment to come back for approval to provide a 12% increase based on that performance evaluation, for a new annual salary of $287,832. D. The Parties now desire to amend the Agreement to reflect the increase in the City Manager's annual salary, effective May 13, 2025. OPERATIVE PROVISIONS 1. AMENDMENTS The following amendments are made to the Agreement as follows: (a) Section 6(a) of the Agreement is hereby amended to read as follows: Effective May 13, 2025, City agrees to pay City Manager $287,832 as an annual base salary per year ($23,986 per month) during the term of this Agreement for his services. All salary payments to City Manager shall be payable in installments at the same time as other City employees of the City are paid and subject to the customary withholding. 2. REMAINDER UNCHANGED Except as specifically modified and amended in this Third Amendment, the Agreement remains in full force and effect and binding upon the parties. 3. INTEGRATION This Third Amendment constitutes the entire understanding and agreement of the parties 4924-3969-5941 v 1 4. 5. 6. and supersedes all negotiations or previous agreements between the parties with respect to all or any part of the transaction discussed in this Third Amendment. EFFECTIVE DATE This Third Amendment shall not become effective until the date it has been formally approved by the City Council and executed by the Parties. APPLICABLE LAW The laws of the State of California shall govern the interpretation and enforcement of this Third Amendment. REFERENCES All references to the Agreement include all their respective terms and provisions. All defined terms utilized in this Third Amendment have the same meaning as provided in the Agreement, unless expressly stated to the contrary in this Third Amendment. IN WITNESS WHEREOF, the Parties have executed this Agreement, as of the date first indicated above. City City Manager CITY OF ROSEMEAD Ben Kim A Municipal Corporation An Individual By: Margaret Clark Mayor ATTEST: By: Ericka Hernandez City Clerk 4924-3969-5941 v 1 2 Ben Kim APPROVED AS TO FORM: Rachel H. Richman City Attorney Attachment B Resolution No. 2025-26 RESOLUTION NO.2025-26 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD, CALIFORNIA, AMENDING THE COMPREHENSIVE SALARY SCHEDULE TO MEET THE REQUIREMENTS OF CALIFORNIA CODE OF REGULATIONS TITLE 2, SECTIONS 570.5 AND 571 TO REFLECT APPROVED RATES FROM MAY 13, 2025 THROUGH JUNE 30, 2025 WHEREAS, the City Council has the authority to create, classify, and design salary scales/ranges for all City of Rosemead employee positions; and WHEREAS, California Code of Regulation Title 2, Section 570.5 and amendment to CCR Section 571 requires a consolidated Salary Schedule that is publicly available showing all City classifications and salary ranges; and WHEREAS, the City Council wishes to meet the requirements of these regulations by adopting a Salary Schedule, which sets forth the salary scales/ranges for all City of Rosemead employee classifications; and WHEREAS, Exhibit A includes the Citywide Salary Schedule that reflects the new salary rate for the City Manager classification. NOW THEREFORE, BE IT RESOLVED that hereby adopts the Salary Schedule for all City of Rosemead employee classifications as set forth in the attached Exhibit A to reflect the new salary rates for Fiscal Year 2024-25 effective May 13, 2025. PASSED, APPROVED, AND ADOPTED this loth day of June, 2025. Margaret Clark, Mayor APPROVED AS TO FORM: ATTEST: Rachel Richman, City Attorney Ericka Hernandez, City Clerk 4931-8077-7029 v1 STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES) § CITY OF ROSEMEAD ) I, Ericka Hernandez, City Clerk of the City Council of the City of Rosemead, California, do hereby certify that the foregoing City Council Resolution No. 2025-26, was duly adopted by the City Council of the City of Rosemead, California, at a regular meeting thereof held on the 101h day of June 2025, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: Ericka Hernandez, City Clerk 4931-8077-7029 v1 o: >n L N c � O N en In M N v O y Q W N E W w „r J W A O � ds d W U m r M V N r N W 01 N ei O O m m m g IA m n m m m w '+ 0a m o m m ry n N to N c m .+ c v r, e.1 tD p m O m O .y n v a tD N N m O r N 0 1l1 r O N O m O1 O M .••i M c eD a6 n L m O M l(1 N N N .-1 O rl m t6 t0 O m n n m 06 O1 n m 01 N ei N e1 ••1 rl ••I eel e-1 rl N ei rl e1 r1 e1 ei '•I rl N N- M r r O a r N r Ol N N N IA M m M M M m Vf r .ti wt0 v m 9 0 t0 r m m N 0 0M m N r M a n 1 00 IA r M .••� O m m Ot O r M C r N u1 m O n O r r O m � eN1 M .a -I ti eN•I N � Oi � ri tD lD Oi W ri l6 W ri Oi ri ri Of Oi a .•t y r aa m .+ n a m Io In M m o m V' N .+ o r r a r lD a M m F, N N r r C tlf Of m m M e-1 m m IA r .•+ a m T ry m N a+ r o+ to 10 10 N 01 .••1 N N m m N m o m m N w pp m M M m r m r t0 m ei Q N r 0 t0 m rl M O m 01 •o O m u1 m r1 01 N M .-1 01 Ol m M� M lO° N M m tYf N �D N 0N V 1l1 M 1!1 N HI 1!1 M Of e~-1 emi N 1~•I •~•1 e~•1 O Oi O r t6 V) Oi r r t6 n n a0 n r W O1 M m r n m Vf O m m 'i m r v 00 m o V1 r r V1 V O1 l0 r M 'i m t0 r g 0 N N N 00 M -, lot t0 b Z- O N Ol e-1 Ill -t O to OI Io m01 O M M l O �••� N Ot N ..-I- rl .•+ 01 °1 O n t6 N a0 n t6 o n m m r-z n m Oi M Q m V M N n O N n <* N w aa r N n 14 O lO 0 1 n m M M T N l0 tD N M m Ill 0r N MN l0 O1 .i N N r O a m M N O r r r O1 w m- 01 m 1Y1 t0 M t0 �••� rl Of O m Ot O r ° M, .N, o o C of 06 0 16 0 0 w w w 16 06 06 N tO r Ot to N T 001 O N pNppp S V 0- a tm+f a O 01 n O 00 N a a o tD M 0 01 r t0 N 0 .••1 % Of w r r tD r m N °' � � � � .0+ .oi ai o6 of Ic vi vi o6 � 16 vi 16 16 1: t6 t6 1: a6 m N O N ti (/1 N lD 1l1 tf1 'm•1 m M n r IA IL' 't I(1 N N 00 O N N O O O Oi a6 01 t6 Ln N a6 t6 t0 1/f t6 t6 r t6 t6 n 06 1-1 e1 ei '•I rl '•1 N t0 c- .-1 - M Q m �-I N r 10 N O1 N� m r Q 1!1 N �••� to m O1 M N 00 I/1 �••� 8 1l1 O M N IA O N �f N O1 ei N O O1 N l0 M N M O1 1D m 00 m �••� M M M Ot 01 r ti u1 1!1 M M N M M O m a m o" 06 ao of t6 Lf e I.: t6 t6 0 t6 to P. 16 c P-� 06 w r w m m m N o In m n m e r N o N o o Io Ot m n m M .ti N m M O M M V1 M r t0 m O N lln t0 Ill Ol V M .-1 1-1 .�-I - c-i m N a�•1 eNi N N N eN•i N m Oo 1~y N Oi Ol Oi w n m 16 V1 -t l` t6 Lr tl1 t6 w n t6 l6 f` n 6~. a W W W W W W U U V U U U U U U U U U U U a a x x x x x x ot! ob o7J 0t1 otf o7f o7S oD ai} 071 o7J o}! a7f o7! a a a a a a a a a a a a a C C u° E 'o a o. ` c w m N ILm c c w ii o`0 u u o c m L c w ? 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