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
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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.
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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;
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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.
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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
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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
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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.
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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
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