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CC - Item 5A - Approval of Fourth Amendment to City Manager Employment AgreementROSEMEAD CITY COUNCIL STAFF REPORT TO: THE HONORABLE MAYOR AND CITY COUNCIL FROM: RACHEL RICHMAN, CITY ATTORNEY DATE: FEBRUARY 22, 2022 SUBJECT: APPROVAL OF FOURTH AMENDMENT TO CITY MANAGER EMPLOYMENT AGREEMENT SUMMARY The City and the City Manager entered into an Employment Agreement ("Agreement") on January 16, 2018. Section 3 of the Agreement permits the City Council to conduct performance evaluations and grant increases in salary. Pursuant to Section 3 (a)(ii) of the Agreement, the City Council conducted the City Manager's performance evaluation. The City Manager received a "meets expectations" review with a 3.0 rating. A meets expectations review entitles the City Manager to a 3% salary increase. A 3% increase would bring the City Manager's total annual salary to $242,388. In accordance with California Code of Regulations Section 570.5 and amendments to 571(b) require a consolidated Salary Schedule which reflects all City classifications and salary ranges for purposes of determining eligible salary compensation for retirement be publicly available. The final salary schedule will be considered for approval by the City Council in a separate staff report. STAFF RECOMMENDATION That the City Council consider approving the Fourth Amendment to the City Manager Employment Agreement granting a 3% salary merit to $242,388, effective January 16, 2022. STRATEGIC PLAN IMPACT - None PUBLIC NOTICE PROCESS This item has been noticed through the regular agenda notification process. AGENDA ITEM 5.A City Council Meeting February 22, 2022 Page 2 of 2 Prepared by: Rachel Richman, City Attorney Attachments: A. Amendment to City Manager Employee Agreement B. FY 2021-2022 Salary Ranges and Job Classifications Attachment A Amendment to City Manager Employee Agreement FOURTH AMENDMENT TO CITY MANAGER EMPLOYMENT AGREEMENT BETWEEN THE CITY OF ROSEMEAD AND GLORIA MOLLEDA AMENDMENT NO.4 This Fourth Amendment (the "Fourth Amendment") is made, and entered into effective January 16, 2022, 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 the Agreement on February 26, 2019, Second Amendment on February 25, 2020, and Third Amendment on February 19, 2021. B. Pursuant to Section 3 of the Agreement, the City Council conducted the City Manager's performance evaluation. The City Manager received a "meet expectations" review which establishes a 3% increase. C. The Parties now desire to amend the Agreement to reflect the increase in the City Manager's annual salary and benefits effective January 16, 2022. OPERATIVE PROVISIONS 1. AMENDMENT 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 $242,388 2. REMAINDER UNCHANGED Except as specifically modified and amended in this Fourth Amendment, the Agreement remains in full force and effect and binding upon the parties. 3. INTEGRATION This Forth 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 Fourth Amendment. 4. EFFECTIVE DATE This Forth 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 Fourth Amendment. 6. REFERENCES All references to the Agreement include all their respective terms and provisions. All defined terms utilized in this Forth Amendment have the same meaning as provided in the Agreement, unless expressly stated to the contrary in this First Amendment. IN WITNESS WHEREOF, the Parties have executed this Agreement, as of the date first indicated above. City City Manager CITY OF ROSEMEAD Gloria Molleda A Municipal Corporation An Individual By: Polly Low Mayor ATTEST: By: Ericka Hernandez City Clerk APPROVED AS TO FORM: By: Rachel H. 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