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CC - Item 6A - Approval of Second Amendment to City Clerk Employment AgreementROSEMEAD CITY COUNCIL STAFF REPORT TO: THE HONORABLE MAYOR AND CITY COUNCIL FROM: GLORIA MOLLEDA, CITY MANAGER J, N` . DATE: MAY 12, 2020 SUBJECT: APPROVAL OF SECOND AMENDMENT TO CITY CLERK EMPLOYMENT AGREEMENT SUMMARY The City and the City Clerk entered into an Employment Agreement ("Agreement") on April 10, 2018. Section 3 of the Agreement permits the City Council to conduct performance evaluations and grant increases in salary. Pursuant to Section 3 (A)(2) of the Agreement, the City Council conducted the City Clerk's performance evaluation. The City Clerk received a "substantially exceeds expectations" review with a 5 rating. A substantially exceeds expectations review entitles the City Clerk to a 5% salary increase. A 5% increase would bring the City Clerk's total annual salary to $108,522.92. In addition, the amendment would change the current severance of 6 -month pay and benefits to 9 -months pay and benefits in the event of a not for cause termination by the City Council. STAFF RECOMMENDATION That the City Council take the following actions: 1. Consider approving the Second Amendment to the City Clerk Employment Agreement granting a 5% salary merit increase for a "substantially exceeds expectations" performance evaluation; and 2. Consider approving an amendment that would change the current severance of 6 -months pay and benefits to 9 -months pay and benefits. STRATEGIC PLAN IMPACT - None PUBLIC NOTICE PROCESS This item has been noticed through the regular agenda notification process. Attachment: a. Amendment to City Clerk Employee Agreement AGENDA ITEM 6.A Attachment A Second Amendment to the City Clerk Employment Agreement SECOND AMENDMENT TO CITY CLERK EMPLOYMENT AGREEMENT BETWEEN THE CITY OF ROSEMEAD AND ERICKA HERNANDEZ AMENDMENT NO. 1 This Second Amendment (the "Second Amendment") is made and entered into effective May 12, 2020, by and between the City of Rosemead, California, a municipal corporation (the "City") and Ericka Hernandez, an individual (the "City Clerk"). The City and the City Clerk are sometimes individually referred to as a "Parry" and collectively as "Parties." RECITALS A. The Parties entered into an Employment Agreement (the "Agreement") on April 10, 2018. B. On April 28, 2020, the City Council approved an adjustment to employee benefits for the City Clerk, which resulted in a 5% increase to the City Clerk's salary. C. Section 3 of the Agreement permits the City Council to conduct performance evaluations and grant increases in salary. D. Pursuant to Section 3 (A)(2) of the Agreement, the City Council conducted the City Clerk's performance evaluation. The City Clerk received a "substantially exceeds expectation" review with a 5 rating. E. The City Council also desires change the current severance of 6 -month pay and benefits to 9 -months pay and benefits. F. The Parties now desire to amend the Agreement to reflect the increase in the City Clerk's annual salary and change in severance. OPERATIVE PROVISIONS 1. AMENDMENTS Section 3 (a)(1)(a) of the Agreement is hereby amended to read as follows: The annual salary for the position of City Clerk shall be a total of $108,522.92. Section D (1) of the Agreement is hereby amended to read as follows: In the event the City Clerk is terminated, by the City Council during such time that the City Clerk is willing and able to perform the City Clerk's duties under this Agreement, then in that event the City agrees to pay the City Clerk severance payment equivalent to nine (9) months of compensation in effect as provided herein. 2. REMAINDER UNCHANGED Except as specifically modified and amended in this Second Amendment, the Agreement remains in full force and effect and binding upon the parties. 3. INTEGRATION This Second Amendment constitutes the entire understanding and agreement of the parties and supersedes all negotiations or previous agreements between the parties with respect to all or any part of the transaction discussed in this Second Amendment. 4. EFFECTIVE DATE This Second Amendment shall not become effective until the date it has been formally approved by the City Council and executed by the Parties. 5. APPLICABLE LAW The laws of the State of California shall govern the interpretation and enforcement of this Second Amendment. 6. REFERENCES All references to the Agreement include all their respective terms and provisions. All defined terms utilized in this Second Amendment have the same meaning as provided in the Agreement, unless expressly stated to the contrary in this Second Amendment. IN WITNESS WHEREOF, the Parties have executed this Agreement, as of the date first indicated above. City City Clerk CITY OF ROSEMEAD Ericka Hernandez A Municipal Corporation An Individual By: Sandra Armenta Mayor ATTEST: By: Gloria Molleda City Manager Ericka Hernandez City Clerk APPROVED AS TO FORM: Rachel H. Richman City Attorney