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CC - Item 6A - Consideration of City Manager Agreement with Kanika KithROSEMEAD CITY COUNCIL STAFF REPORT TO: HONORABLE MAYOR AND CITY COUNCIL FROM: RACHEL RICHMAN, CITY ATTORNEY DATE: OCTOBER 13, 2026 SUBJECT: CONSIDERATION OF CITY MANAGER AGREEMENT WITH KANIKA KITH SUMMARY The City Council has the responsibility to hire a city manager and to set his or her compensation and benefits. After the announcement that City Manager Ben Kim was retiring, the City Council, with assistance of a recruiter, undertook an extensive and thorough search for a new city manager. The City Council in closed session directed that an agreement with Kanika Kith be presented to the Council for approval. Ms. Kith comes to the City from the City of San Fernando where she was the City Manager and before that its Economic Development Director. Prior to that, Ms. Kith was the Director of Planning for California City and worked in the planning department for the at the City of South Pasadena. The attached City Manager Employment Agreement includes, among other items, the following provisions: • Start date: December 7, 2026 • Base Salary: $320,000 • Vehicle Allowance: $600 per month • Vacation Accruals, Deferred Compensation, Health, Dental and Life Insurance Benefits: Same as other City Executive Managers • Term of Agreement: Three Years • Severance Provision if not for cause: Value of 12 months base salary and benefits • Memberships and Conferences: City will pay for cost of listed professional memberships and conferences 4902-7323-9510 vl AGENDA ITEM 6.A City Council Meeting October 13, 2026 Page 2 of 2 STAFF RECOMMENDATION City Council move to approve the attached City Manager Agreement between the City of Rosemead and Kanita Kith FISCAL IMPACT There is no fiscal impact associated with the recommendation of this report. PUBLIC NOTICE PROCESS This item has been noticed through the regular agenda notification process. Prepared by: Rachel Richman, City Attorney Attachment: City Manager Agreement with Kanika Kith 4902-7323-9510 v 1 Attachment A City Manager Agreement with Kanika Kith CITY MANAGER AT -WILL EMPLOYMENT AGREEMENT BETWEEN THE CITY OF ROSEMEAD AND KANIKA KITH This agreement is between the CITY OF ROSEMEAD ("City"), a municipal corporation organized in the State of California, and KANIKA KITH, an individual ("City Manager") ("Agreement"). City and City Manager shall be collectively referred to as "Parties" or individually referred to as "Party", "City Manager" or "City". RECITALS A. WHEREAS, the City requires the services of a City Manager. B. WHEREAS, the City Manager has the necessary education, experience, skills and expertise to serve in the capacity as the City's City Manager. C. WHEREAS, in accordance with the terms of the Agreement, City and City Manager have agreed to memorialize their intent and the terms of employment by this Agreement. NOW THEREFORE, it is hereby agreed by City and City Manager as follows: AGREEMENT 1. Effective Date. The effective date of this Agreement is December 7, 2026. 2. Appointment as City Manager. The City agrees to employ Kanika Kith as City Manager for the City, subject to the terms, conditions and provisions of this Agreement. City Manager accepts such employment. City Manager shall be "at will" and serve at the pleasure of the City Council. City Manager shall start performance of her duties as City Manager on December 7, 2026. 3. Term of Agreement. The term of this Agreement ("Term") shall be for a period of three (3) years, commencing on December 7, 2026 to December 7, 2029, unless terminated earlier by either Party pursuant to Section 5 below. City Manager is an at -will employee who may be terminated at any time during the Term, with or without cause, and shall serve at the pleasure of the City Council. City Manager may resign at any time for any reason by providing notice in accordance with Section 5 to City Council. 4. Duties and Responsibilities. a. City Manager will perform the functions and duties specified in the laws of the United States and the State of California, the City's Municipal Code, the Personnel Rules, ordinances and resolutions of City, and to perform other legally permissible and proper duties and functions of the City Council may, from time to time, assign. b. City Manager shall perform her duties to the best of her ability in accordance with the highest professional and ethical standards of the profession, comply with all general rules and regulations established by the City, and obey all State and Federal laws. 4900-4588-5142 v 1 c. City Manager agrees to devote her productive time, ability and attention to the City's business during the Term of this Agreement. City Manager shall not hold secondary employment, and shall be employed exclusively by the City. The City and City Manager recognize that City Manager is expected to devote necessary time outside normal office hours to perform business of the City. Since City Manager's position is "exempt" under the Fair Labor Standards Act, City Manager shall not receive overtime or extra compensation for work performed outside normal business hours. d. City Manager shall not engage in any activity, which is or may become a conflict of interest, prohibited by contract, or which may create an incompatibility of office as defined under California law. Prior to performing any services under this Agreement and annually thereafter, the City Manager must complete disclosure forms as required by law. e. If not a member at the time of execution of this agreement, the City Manager shall become a member within 60 days of execution. Once a member of the International City Management Association ("ICMA"), the Parties mutually desire that the City Manager be subject to and comply with the ICMA Code of Ethics (Exhibit B). The City Manager commits to comply with the ICMA Code of Ethics. 5. Resignation/Termination. a. Resignation/Retirement. The City Manager may resign at any time and agrees to give the City at least 45 days advance written notice of the effective date of the City Manager's resignation, unless the Parties otherwise agree in writing. b. Termination by City. The City Manager is an "at -will" employee and serves at the pleasure of the City Council. Nothing in this agreement shall prevent the City Council from terminating this Agreement and the services of the City Manager at its sole discretion as provided herein. Termination Without Cause. City may terminate City Manager without cause by providing him with a written notice of termination. If the City, at the request of a majority of the City Council, requests City Manager's resignation without cause, then City Manager shall be deemed terminated without cause. If the City Manager is terminated without cause, then the City Manager is entitled to receive severance as detailed in Section 8 below. Termination For Cause. City may terminate City Manager for cause by providing her with a written notice of termination. Such termination may be effective immediately. The following are sufficient basis for termination for cause: A. City Manager engages in illegal activities; B. Gross malfeasance; C. Dereliction of duties; D. Absence from employment without a good cause; E. Failure to perform duties and responsibilities under this Agreement, as defined in the City's Municipal Code, or as specified in the City Manager's job description. F. Resume fraud or other acts of material dishonesty; G. Violation of the City's Rules, including but not limited to, the City's rule against harassment, discrimination, and retaliation; 4900 4588-5142 vl H. Use or possession of illegal drugs; I. Engaging conduct tending to bring embarrassment or disrepute to the City; J. Conviction of any felony or any criminal offense involving moral turpitude; or K. An abuse of her office or position" as that term is defined in Government Code Section 53243.4. c. In accordance with state law and applicable City policies, City Manager shall be entitled to receive all compensation earned, but unpaid, for actual work performed and accrued unused vacation and administrative leave time as of the date of termination. d. In accordance with section 2.08.050 of the City of Rosemead Municipal Code, as may be modified from time to time, the City Manager shall not be removed from office during or within a period of ninety (90) days next succeeding any general municipal election held in the City at which election a member of the City Council is elected; the purpose of this provision is to allow any newly elected member of the City Council or a reorganized City Council to observe the actions and ability of the City Manager in the performance of the powers and duties of his or her office. e. Affirmation of "At -Will" status. The parties recognize and affirm that: 1) City Manager is an "at -will" City Manager whose employment may be terminated by the City Council at any time; and 2) there is no express or implied promise made to City Manager for any form of continued employment as City Manager or any other position of employment with City. This Agreement is the sole and exclusive basis for an employment relationship between City Manager and the City. Nothing in this Agreement shall be construed to create a property interest for City Manager in the position of City Manager. f. Given the at -will nature of the position of City Manager, an important element of the employment agreement pertains to termination. It is in both the City's interest, and that of the City Manager, that any separation of the City Manager is done in a businesslike manner. 6. Salary a. Effective December 7, 2026, City agrees to pay City Manager for her services rendered pursuant to this Agreement an annual base salary of $320,000.00 per year ($26,666.67 per month) during the Term of this Agreement. 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. b. Whenever a cost of living adjustment or other non -merit based pay increase is provided to other City employees, the City Council may meet to determine whether it is reasonable and appropriate to provide a similar adjustment or increase to City Manager's Base Salary. In the event such a cost of living adjustment or other non -merit based pay increase is provided to other City employees, it shall be the City Manager's responsibility to coordinate with the Mayor to place the consideration of a similar adjustment or increase on the agenda of a regular City Council meeting. 4900-4588-5142 v 1 c. The City Council will review and evaluate the performance of the City Manager on an annual basis or more frequently if the Council so desires. Failure of the City Council to provide a performance evaluation shall not limit the City's ability to terminate this Agreement pursuant to the terms set forth herein. Review and evaluation shall be in accordance with such criteria as the parties may jointly agree upon, but which the parties contemplate will include mutually agreed upon performance goals for the City Manager and City Council goals, priorities, activities and programs for the City. 7. Benefits. a. Benefits. To the extent benefits are not specifically addressed in the Agreement, the City Manager shall receive the benefits set forth and attached hereto as Exhibit A: Resolution No. 2025-53 Establishing Annual Salary Ranges and Benefits for Executive Management Employees of the City of Rosemead from July 1, 2025 through June 30, 2027, or as later amended at the discretion of the City Council. In the event there are amendments made by the City Council, it shall be the City Manager's responsibility to coordinate with the Mayor to place the consideration of a similar adjustment or increase on the agenda of a regular City Council meeting. b. Vehicle Allowance. City Manager is entitled to a $600 monthly vehicle allowance in exchange for making a vehicle available for City Manager's own use and f or City -related business and/or functions during, before, and after normal work hours, or City Manager may use a City vehicle. c. Public Employees' Retirement System. City is a contract member of the California Public Employees' Retirement System (CalPERS). All employees will be enrolled in the City's retirement program through CalPERS. The CalPERS benefit shall be based upon the 2% @ 55 formula for Classic Members — employee pays 7%. All "new members" under the Public Employees' Pension Reform Act of 2013 (PEPRA) will be subject to the 2.0% @ 62 benefit formula — employee will pays 50% cost sharing for participation in PERS, which is currently 6.75%.. d. Medical/Wellness. City will provide a health benefit allotment of $1,700 per month which may be used towards a variety of health, dental, and vision plans, plus $500 per month towards out-of-pocket medical expenses. City will also provide City Manager with benefits in accordance with the City's Wellness Program for Executive Management employees. e. Deferred Compensation. City shall provide City Manager with deferred compensation benefits in accordance with the City's 457 Deferred Compensation Plan for Executive Management employees, as set forth in Resolution No. 2025-53 Establishing Annual Salary Ranges and Benefits for Executive Management Employees of the City of Rosemead from July 1, 2025 through June 30, 2027, or as later amended. City Manager may voluntarily participate in the available 457 Deferred Compensation Plan. Any voluntary contributions made to such plan must be made via automatic payroll deductions. The amounts voluntarily contributed to the plan are subject to the statutory limits pursuant to IRS rules and regulations. f. Flex Schedule. City employees enjoy a compressed 4/10 workweek. g. Vacation Accruals. City Manager shall accrue vacation in accordance with the City's Vacation Accrual and Accrual Cap, as set forth in Resolution No. 2025-53 Establishing 49004588-5142 v 1 Annual Salary Ranges and Benefits for Executive Management Employees of the City of Rosemead from July 1, 2025 through June 30, 2027, or as later amended. h. Sick Leave. City Manager shall receive 120 hours of sick leave per year. City Manager may transfer up to 200 hours of uncompensated sick leave from her prior employer. i. Administrative Leave. City Manager will receive up to 80 hours of administrative leave per year, with a 2-year accrual cap (160 hours). j. Group Plans. City Manager will be provided group life insurance coverage in the amount of $100,0000, and coverage in both Short -Term and Long -Term Disability plans. k. Telecommunications Allowance. City Manager shall be provided a monthly telecommunications allowance of $100 for use of personal cell phone in lieu of a City - issued device, and up to $1,000 for cellular equipment initially and once every three years. I. Professional Activities and Conferences. The City Council desires the City Manager to be reasonably active in professional organizations that will contribute to the City Manager's professional development and standing and that will contribute to the advancement of the City's interests and standing. To that end, the City Council will pay for the membership in and attendance of conferences for the following organizations: San Gabriel Valley City Managers Association (SGVCMA), California City Management Foundation (CCMF), Los Angeles County Economic Development Corporation (LAEDC), ICMA, ICSC, CALED, and California League of Cities. City Manager may request additional memberships and attendance subject to approval by the City Council. m. Reimbursement. The City shall reimburse the City Manager for reasonable and necessary travel costs, subsistence and other business expenses incurred by the City Manager in the performance of her duties including attendance at conferences. 8. Severance. a. City Manager shall serve at the will and pleasure of the City Council, and her employment may be terminated by the City Council at any time, with or without cause. Termination of City Manager's employment shall not require any showing of cause or justification, nor shall City Manager be entitled to any internal administrative appeal of the decision of the City Council, beyond any process required by law. b. In the event of City Manager's involuntary termination for reasons other than her resignation, death, disability, or termination with cause, as provided in Section 5(b)(ii) above, City Manager shall be paid severance pay as provided in Section 8(d) below. City Manager shall not receive severance if, at the end of the three-year Term, the Council determines not to renew this Agreement. c. If City Manager's employment is terminated without cause, as set forth in Section 5(b)(i) above, she will be eligible for payment of severance, conditioned upon City Manager's irrevocable execution of a written waiver and release of any claims, grievances or causes of action against City, City employees, agents, officers, and City Council or City Councilmembers arising out of or concerning this Agreement, City Manager's employment with City, or the termination of her employment with the City. If City Manager does not agree to waive such claims, grievances or causes of action, the City shall not 4900-4588-5142 v 1 pay City Manager severance pay. d. Upon the effective date of the executed written waiver and release under Section 8(c), City agrees to provide City Manager with a one-time cash payment equal to twelve (12) months of base salary, plus the value of twelve (12) months of City paid health benefits as severance pay, minus any required withholding. Such payment shall release City from any further obligations under this Agreement. e. City is currently a member of the California Joint Powers Insurance Authority (hereinafter the "CJPIA") which currently makes available to City Manager an additional six (6) months of compensation and COBRA benefits subject to the terms and conditions of the CJPIA'S Special Liability Protection Program. The terms and conditions of the CJPIA's Special Liability Protection Program ("CJPIA Program") may vary from time to time. The terms and conditions of the CJPIA Program, if any, in effect at the time of termination of City Manager's employment will govern. If, at the time of City's termination of City Manager's employment, City is no longer a member of CJPIA, this paragraph shall not apply, and the benefit, if any, available to City Manager under this sub -section (b) shall be determined at the time of City's termination of City Manager. 9. Indemnification. The City shall defend, hold harmless and indemnify City Manager against any tort, civil rights, personnel, discrimination, professional liability claim or demand or other legal action, whether groundless or otherwise, arising out of an alleged act or omission occurring in the performance of City Manager's duties in accordance with the provisions of California Government Code section 825. The City shall provide a defense in accordance with California Government Code section 995. The City may decline to defend and/or indemnify City Manager only as permitted by the California Government Code. The City may compromise and settle any such claim or suit and pay the amount of any settlement or judgment therefrom. 10. Bonding. City shall bear the full cost of any fidelity or other bonds the City Council requires of City Manager under any law or ordinance or otherwise. 11. Notices. Any notices required by this Agreement shall be in writing and either given in person or by first class mail with the postage prepaid and addressed as follows: TO CITY: Rosemead City Hall 8838 East Valley Boulevard Rosemead, CA 91770 ATTN: Mayor & City Council TO CITY MANAGER: Kanika Kith [address on file with human resources] 12. Abuse of Office. 49004588-5142 v 1 California Government Code Sections 53243, 52431.1, 53243.2 and 52431.3 are incorporated by reference as if fully set forth herein. If this contract is terminated, any cash settlement related to the termination that City Manager may receive from City shall be fully reimbursed to the City if City Manager is convicted of a crime involving an abuse of her office or her position. 13. Entire Agreement. This Agreement and its exhibits are the final expression of the complete agreement of the parties with respect to the matters specified herein and supersedes all prior oral and written understandings and agreements, and, except as prescribed herein, this Agreement cannot be modified except by written mutual agreement signed by the parties. The Parties agree that the recitals identified in this Agreement are true and correct and are incorporated into the terms of this Agreement. 14. Severability, Applicable, Law, and Interpretation. In the event that any provision of this Agreement is held to be illegal or void by a court having jurisdiction over the parties, the remainder of this Agreement shall remain in full force and effect unless the parts found to be void are wholly inseparable from the remaining portion of this Agreement. Any dispute concerning this Agreement shall be governed by the laws of the State of California. The parties consent to the jurisdiction of the California courts with venue in Los Angeles County. IN WITNESS WHEREOF, the City has caused this Agreement to be signed and executed on its behalf by its Mayor and duly attested by the City Clerk. It has also been executed by the City Manager. CITY MANAGER CITY OF ROSEMEAD Kanika Kith, City Manager Sandra Armenta, Mayor ATTEST: Ericka Hernandez, City Clerk APPROVED AS TO FORM: Rachel H. Richman, City Attorney 4900-4588-5142 v 1