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Home My WebLink AboutD-3 First Amendment to City Manager Employment AgreementSCHEDULED ITEM D-3 TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS FROM: MARCO A. MARTINEZ, CITY ATTORNEY DATE: NOVEMBER 21, 2016 SUBJECT: ADOPT RESOLUTION NO. 2016-C78 APPROVING THE FIRST AMENDMENT TO THE CITY MANAGER EMPLOYMENT AGREEMENT TO PROVIDE ADDITIONAL DEFERRED COMPENSATION BENEFITS SUMMARY: On February 17, 2015, the City entered into an employment agreement for City Manager services with Troy Butzlaff. The City Council recently completed a performance evaluation of the City Manager’s performance since his hire date. That evaluation included discussion of the City Manager’s current salary and benefit package. The proposed actions adopt Resolution No. 2016-C78 approving the First Amendment to the City Manager Employment Agreement and Approve the First Amendment to the City Manager Employment Agreement to increase the amount of deferred compensation. RECOMMENDATION: Staff recommends that the City Council take the following actions: 1) Adopt Resolution No. 2016-C78 approving the First Amendment to the City Manager Employment Agreement; and 2) Approve the First Amendment to the City Manager Employment Agreement to increase the amount of deferred compensation. DISCUSSION: On February 17, 2015, the City entered into an employment agreement for City Manager services with Troy Butzlaff. The City Council recently completed a performance evaluation of the City Manager’s performance since his hire date. That evaluation included discussion of the City Manager’s current salary and benefit package. As part of the City Manager’s compensation established in the employment agreement, the City pays $580 per month for a Section 457 deferred compensation program. APPROVED COUNCIL MEETING 11/21/2016 Adopt and Approve First Amendment to City Manager Employment Agreement November 21, 2016 Page 2 In addition to the City’s contribution of $580 per month for deferred compensation, the City Manager currently contributes an additional $1,330 per month for this benefit. The annual limit for contributions to a deferred compensation plan for employees under 50 years of age is $18,000. Employees who are 50 years and older can add $6,000 per year in “catch-up” contributions. Mr. Butzlaff turned 50 in January this year and since that time has increased his personal monthly contribution to his deferred compensation to include the “catch-up” amount. The proposed amendment to the City Manager Employment Agreement would take over “catch-up” contribution by paying an additional $500 per month to the City Manager’s deferred compensation, which would meet the annual “catch-up” contribution limit of $6,000. FISCAL IMPACT: The fiscal impact will be an annual cost of $6,000. Prepared by: Fiscal Impact Reviewed by: Marco Martinez Talika M. Johnson City Attorney Director of Finance Reviewed and Approved: Reviewed and Approved: Louie F. Lacasella Amelia Ayala Management Analyst Director of Human Resources and Risk Management Attachments: 1) Resolution No. 2016-C78 Approving the First Amendment to the City Manager Employment Agreement 2) First Amendment to the City Manager Employment Agreement 45635.01000\29377035.1 RESOLUTION NO. 2016-C78 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA, APPROVING THE FIRST AMENDMENT TO THE CITY MANAGER EMPLOYMENT AGREEMENT WHEREAS, on Februaryh 17, 2015, the City entered into the City Manager Employment Agreement with Troy Butzlaff to serve as City Manager for the City of Azusa; and WHEREAS, the City Attorney has prepared the attached First Amendment to the City Manager Employment Agreement which amends the deferred compensation benefit for Mr. Butzlaff’s employment as City Manager; and WHEREAS, in accordance with Azusa Municipal Code Chapter 2, Article III, Division 2, the City Council desires to approve the First Amendment to the City Manager Employment Agreement attached to this Resolution as Exhibit “A.” THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. Approval of First Amendment to the City Manager Employment Agreement. The City Council approves the First Amendment to the City Manager Employment Agreement between the City of Azusa and Mr. Troy Butzlaff, which is attached hereto as Exhibit “A” and incorporated herein by reference. SECTION 3. Effective Date. This Resolution shall take effect immediately upon adoption. 2 45635.01000\29377035.1 PASSED, APPROVED AND ADOPTED this 21st day of November, 2016. ____________________________________ Joseph R. Rocha Mayor ATTEST: ____________________________________ Jeffrey Lawrence Cornejo, Jr. City Clerk APPROVED AS TO FORM: __________________________________________ Best Best & Krieger LLP City Attorney 3 45635.01000\29377035.1 EXHIBIT “A” FIRST AMENDMENT TO THE CITY MANAGER EMPLOYMENT AGREEMENT [SEE ATTACHED] 45635.01000\29376722.1 CITY OF AZUSA FIRST AMENDMENT TO THE CITY MANAGER EMPLOYMENT AGREEMENT 1. PARTIES AND DATE This First Amendment to the City Manager Employment Agreement (“First Amendment”) is made and entered into as of November ___, 2016 by and between Troy Butzlaff (hereinafter referred to as “City Manager” or the "Employee") and the City of Azusa, a municipal corporation of the State of California (hereinafter referred to as "City"). City and Employee may sometimes referred to individually as "Party" and collectively as "Parties" throughout this First Amendment. 2. RECITALS 2.1 Employment Agreement. On or about February 17, 2015, City and Employee entered into the City Manager Employment Agreement, setting forth the terms and conditions for City Manager services to be provided by the Employee to the City (“Employment Agreement”). 2.3 First Amendment. City and Employee now desire to amend the Employment Agreement for the first time in order to increase the amount of the deferred compensation benefit. 2.4 Authority. This First Amendment is authorized pursuant to Section 12.1 of the Employment Agreement. 3. TERMS 3.1 Deferred Compensation. Section 3.2 (Deferred Compensation) of the Employment Agreement is hereby deleted in its entirety and restated to read as follows: "3.2 Deferred Compensation. City agrees to contribute five hundred eighty dollars ($580) per month on Employee's behalf to a qualified deferred compensation plan such as offered by the International City/County Management Association Retirement Corporation. City further agrees to make, in equal proportionate amounts each pay period, an annual contribution of six thousand dollars ($6,000) to an Internal Revenue Code Section deferred compensation account or Roth IRA Plan as determined by Employee. This contribution will be made in accordance with the plan agreement and documents. City and Employee agree that any amount contributed to Employee’s deferred compensation or Roth IRA plan are not reportable to the California State Public 2 45635.01000\29376722.1 Employees Retirement System (CalPERS) and shall not be included in the calculation of Employee’s retirement allowance.” 3.2 Remaining Provisions. Except as amended by this First Amendment, all provisions of the Employment Agreement shall remain in full force and effect and shall govern the actions of City and Employee under this First Amendment. [SIGNATURES ON FOLLOWING PAGE] 3 45635.01000\29376722.1 IN WITNESS WHEREOF, the Parties have executed this First Amendment to the City Manager Employment Agreement as of the ______ day of November, 2016. EMPLOYEE By: _____________________________ Troy Butzlaff CITY OF AZUSA By: _____________________________ Joseph R. Rocha Mayor Attest: By: ____________________________________ Jeffrey Lawrence Cornejo, Jr. City Clerk