CC - Item 5B - Approval of Third Amendment to City Manager Employment Agreement 5 E M F
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TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: RACHEL RICHMAN, CITY ATTORNEY,
DATE: FEBRUARY 9, 2021
SUBJECT: APPROVAL OF THIRD AMENDMENT TO CITY MANAGER
EMPLOYMENT AGREEMENT
SUMMARY
The City and the City Manager entered into an Employment Agreement ("Agreement") on
January 16, 2018. The Contract was extended and amended in February 2019 and February
2020. Section 3 of the Agreement permits the City Council to conduct performance evaluations
and grant increases in salary. Pursuant to Section 3 (a)(i)(1) of the Agreement, the City Council
conducted the City Manager's performance evaluation on January 26, 2021. The City Manager
received an "exceeds expectations" review with a 4.0 rating. An exceeds expectations review
entitles the City Manager to a 4% salary increase. A 4% increase would bring the City
Manager's total annual salary to $232,998.27.
The City Council is also being asked by the City Manager to change the current severance of
9-months pay and benefits to 12-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 an amendment to the City Manager's Employment Agreement
granting a 4% salary merit increase for an "exceeds expectations" performance
evaluation to $232,998.27.
2. Consider approving an amendment that would change the current severance of 9-months
pay and benefits to 12-months pay and benefits.
AGENDA ITEM 5.B
City Council Meeting
February 9,2021
Page 2 of 2
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process.
Prepared by:
Rachel Richman, City Attorney
Attachment A: Third Amendment to City Manager Employee Agreement
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Attachment A
Third Amendment to
City Manager Employee Agreement
THIRD AMENDMENT TO CITY MANAGER EMPLOYMENT AGREEMENT
BETWEEN THE CITY OF ROSEMEAD AND GLORIA MOLLEDA
AMENDMENT NO. 3
This Third Amendment (the "Third Amendment") is made and entered into effective February 9,
2021, by and between the City of Rosemead, California, a municipal corporation (the "City")
and Gloria Molleda, 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 January 16,
2018 and entered into a First Amendment to that Agreement on February 26, 2019 and a
Second Amendment on February 25, 2020.
B. Pursuant to Section 3 of the Agreement, the City Council conducted the City Manager's
performance evaluation. The City Manager received an "exceed expectations" review
which establishes a 4% increase..
C. The City Council also desires to extend the severance period for no fault termination of
the City Manager by the City Council from 9 months to 12 months.
D. The Parties now desire to amend the Agreement to reflect the increase in the City
Manager's annual salary and benefits.
OPERATIVE PROVISIONS
1. AMENDMENTS
a. Section 3(a)(i)(1) of the Agreement is hereby amended to read as follows:
The annual salary for the position of City Manager shall be $232,998.27.
b. Section 3(j)(i) of the Agreement is hereby amended to read as follows:
In the event the City Manager is terminated by the City Council without cause during
such time that the City Manager is willing and able to perform the City Manager's duties
under this Agreement, then in that event the City agrees to continue to compensate the
City Manager at her then current rate of pay, as severance pay, for a total of twelve (12)
months, including all benefits and accrued leaves.
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.
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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.
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
indicated above.
CITY OF ROSEMEAD Gloria Molleda
A Municipal Corporation An Individual
By:
Sandra Armenta Gloria Molleda
Mayor City Manager
ATTEST:
By:
Ericka Hernandez
City Clerk
APPROVED AS TO FORM:
By:
Rachel H. Richman
City Attorney
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