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CC - Item 6A - Approval of Seventh Amendment to City Clerk Employment Agreement and Approval of Salary Schedule Resolution No. 2024-20ROSEMEAD CITY COUNCIL STAFF REPORT TO: THE HONORABLE MAYOR AND CITY COUNCIL FROM: BEN KIM, CITY MANAGER DATE: MAY 14, 2024 SUBJECT: APPROVAL OF SEVENTH AMENDMENT TO CITY CLERK EMPLOYMENT AGREEMENT AND APPROVAL OF SALARY SCHEDULE RESOLUTION NO. 2024-20 s'� 0lu-fffll 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 on April 23, 2024. The City Clerk received a "substantially exceeds expectations" review with a 5 rating. As the City Clerk is subject to the same benefits as the Executive Management Group, a substantially exceeds expectations review entitles the City Clerk to a 7%-9% salary increase in this case the increase being proposed is 9%, bringing the City Clerk's total annual base salary from $133,286 to $145,282. In addition, a 3% Cost of Living Adjustment (COLA) adjustment is scheduled for all City employees effective July 1, 2024, which would bring the salary to $149,641. In order for the increase in the performance evaluation and COLA to apply to the City Clerk, the City Council must approve an amendment to her contract. FISCAL IMPACT The annualized fiscal impact of awarding the 9% salary increase and the 3% COLA on July 1, 2024, changing the City Clerk salary from $133,286 to $149,641 in addition to related benefits of approximately $27,000 will be included in the FY 2024-25 proposed budget. STAFF RECOMMENDATION That the City Council take the following actions: 1. Approve the granting of a 9% salary merit increase for a "substantially exceeds expectations" performance evaluation effective April 23, 2024, and a 3% COLA increase effective July 1, 2024, and authorize the Mayor to execute the Seventh Amendment on behalf of the City Council to reflect the increase. AGENDA ITEM 6.A City Council Meeting May 14, 2024 Page 2 of 2 2. Adopt Resolution No. 2024-20, amending the Comprehensive Salary Schedule for FY 2023-24. STRATEGIC PLAN IMPACT - None PUBLIC NOTICE PROCESS This item has been noticed through the regular agenda notification process. Attachments: A. Amendment to City Clerk Employee Agreement B. Resolution No. 2024-20 - amending the Comprehensive Salary Schedule for FY 2023-24 Attachment A Amendment to City Clerk Employment Agreement SEVENTH AMENDMENT TO CITY CLERK EMPLOYMENT AGREEMENT BETWEEN THE CITY OF ROSEMEAD AND ERICKA HERNANDEZ AMENDMENT NO. 7 This Seventh Amendment (the "Seventh Amendment") is made and entered into effective April 23, 2024, 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 "Party" and collectively as "Parties." RECITALS A. The Parties entered into an Employment Agreement (the "Agreement") on April 10, 2018. B. Section 3 of the Agreement permits the City Council to conduct performance evaluations and grant increases in salary. C. On April 23, 2024, 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 which pursuant to the Executive Manager Resolution no. 2023-52 provides for a 7%-9% increase in base salary. With this Seventh Amendment, the City Clerk will receive a 9% increase for performance. D. City employees are receiving a 3% COLA effective July 1, 2024. The City desires fairness to provide the same COLA to the City Clerk. E. The Parties now desire to amend the Agreement to reflect the increase in the City Clerk's annual salary as described above. 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 effective April 23, 2024, shall be a total of $145,282.00. On July 1, 2024, the City Clerk annual salary shall be $149,641.00 2. REMAINDER UNCHANGED Except as specifically modified and amended in this Seventh Amendment, the Agreement remains in full force and effect and binding upon the parties. 3. INTEGRATION This Seventh 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 transactions discussed in this Seventh Amendment. 1 4. 5. 6. EFFECTIVE DATE This Seventh Amendment shall not become effective until the date it has been formally approved by the City Council and executed by the Parties. APPLICABLE LAW The laws of the State of California shall govern the interpretation and enforcement of this Seventh Amendment. REFERENCES All references to the Agreement include all their respective terms and provisions. All defined terms utilized in this Seventh Amendment have the same meaning as provided in the Agreement, unless expressly stated to the contrary in this Seventh 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: Steven Ly Mayor ATTEST: By: Ericka Hernandez City Clerk APPROVED AS TO FORM: By: Rachel H. Richman City Attorney F) Ericka Hernandez City Clerk Attachment B Resolution No. 2024-20 RESOLUTION NO. 2024-20 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD, CALIFORNIA, AMENDING THE COMPREHENSIVE SALARY SCHEDULE TO MEET THE CALIFORNIA CODE OF REGULATIONS TITLE 2, SECTION 570.5 AND 571 TO REFLECT APPROVED RATES FROM MAY 14, 2024 THROUGH JUNE 30, 2025 WHEREAS, the City Council has the authority to create, classify, and design salary scales/ranges for all City of Rosemead employee positions; and WHEREAS, California Code of Regulation (CCR) Title 2, Section 570.5 and amendment to CCR Section 571 requires a consolidated Salary Schedule that is publicly available showing all City classifications and salary ranges; and WHEREAS, the City Council wishes to meet the requirements of these regulations by adopting a Salary Schedule, which sets forth the salary scales/ranges for all City of Rosemead employee classifications; and WHEREAS, Exhibit A includes the Citywide Salary Schedule that reflects the new salary rates for all classifications. NOW THEREFORE, BE IT RESOLVED that hereby adopts the Salary Schedule for all City of Rosemead employee classifications as set forth in the attached Exhibit A to reflect the new salary rates for Fiscal Year 2023-24 effective May 14, 2024, and Fiscal Year 2024-25 effective July 1, 2024. PASSED, APPROVED, AND ADOPTED this 14' day of May, 2024. Steven Ly, Mayor APPROVED AS TO FORM: ATTEST: Rachel Richman, City Attorney Ericka Hernandez, City Clerk STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES) § CITY OF ROSEMEAD ) I, Ericka Hernandez, City Clerk of the City Council of the City of Rosemead, California, do hereby certify that the foregoing City Council Resolution No. 2024-20, was duly adopted by the City Council of the City of Rosemead, California, at a regular meeting thereof held on the 14' day of May 2024, by the following vote, to wit: AYES: ARMENTA, CLARK, LOW, LY NOES: NONE ABSENT: DANG ABSTAIN: NONE Ericka Hernandez, City Clerk c V l V a�uuuuu �� ��� E��uuuuuuuuu uuuu ,z„uzi uzi uzi z z z z z z z z z w w w w i d i n dl et W d n i a "e ai E « s d a � w o v a m o o a l E G m c G � i E : a E m `o m i¢ i v. a v'� w A 9 a Em$ r v $ s o 10 0 0 O c 'o`- f z m i 3 �' K C 'C3 c y .t m ,g? 1! o `o_ 'c o T N N m T N N M m Q T N F M O N O M N N 1 O e! 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