HomeMy WebLinkAboutResolution No. 2022-C76RESOLUTION NO.2022-C76
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF AZUSA, CALIFORNIA, APPROVING A THIRD
AMENDMENT TO THE CITY MANAGER EMPLOYMENT
AGREEMENT (SERGIO GONZALEZ)
WHEREAS, on April 1, 2018, the City entered into a City Manager Employment
Agreement with Sergio Gonzalez to serve as City Manager for the City of Azusa; and
WHEREAS, on September 16, 2019, the City Council approved the First Amendment to
the City Manager's Employment Agreement, providing the City Manager with a one-time, 3%
bonus and increasing the amount provided in the City Manager's Flexible Benefit Plan; and
WHEREAS, on July 19, 2021, the City Council approved a Second Amendment to the
City Manager's Employment Agreement providing a salary increase, increased Health & Medical
Benefits and increasing the term of severance; and
WHEREAS, in July and August of 2022, the City Council conducted a performance
evaluation of the City Manager, including a review of the City Manager's current compensation
and benefits and determined that further amendments are warranted; and
WHEREAS, this Third Amendment is authorized pursuant to Section 12.1 of the
Employment Agreement; and
WHEREAS, in accordance with Azusa Municipal Code Chapter 2, Article III, Division 2,
the City Council desires to approve the Third 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 Third Amendment to the City Manager Employment
Agreement. The City Council hereby approves the Third Amendment to the City Manager
Employment Agreement between the City of Azusa and Mr. Sergio Gonzalez, which is attached
hereto as Exhibit "A" and incorporated herein by reference.
SECTION 2. Effective Date. This Resolution shall take effect immediately upon
adoption, however the compensation amendments provided shall be retroactive to July 1, 2022.
PASSED, APPROVED AND ADOPTED this 3`d day of October, 2022.
Robert Cr6nzales
Mayor
ATTEST:
(: I�Izmuw��6)
w ace Cornej// X.
Clerk
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF AZUSA )
I HEREBY CERTIFY that the foregoing Resolution No. 2022-C76 was duly adopted by
the City Council, at a regular meeting of said Agency held on the 3`d day of October 2022, by the
following vote of the Council:
AYES: COUNCILMEMBERS: GONZALES, ALVAREZ, AVILA, MENDEZ, BECKWITH
NOES: COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: NONE
2 Z1. 0 n 0
Jef y wr Comejo, J .
Jerk
APPROVED AS TO FORM:
Best, B st & Krieger, LP
City Attrney
2
EXHIBIT "A"
THIRD AMENDMENT TO THE CITY MANAGER EMPLOYMENT AGREEMENT
(2022)
AGENCY
SALARY MIN
SALARY MAX
ANNUAL MAX
Azusa
$
20,000
$
20,000
$
240 000
Baldwin Park
$
18,061
$
20,907
$
263,432
Covina
$
19,219
$
19,219
$
230,625
El Monte
$
20,833
$
20,833
$
250,000
Glendora
$
21,458
$
21,458
$
257,500
La Verne
$
16,537
$
20.101
$
254,500
Rancho Cucamonga
$
20,224
$
29,252
$
351,024
Arcadia
$
19,267
$
19,267
$
231,205
Monrovia
$
18,375
$
18,375
$
227,500
Duarte
$
17,850
$
17,850
$
216,400
Irwindale
$
16,383
$
19,914
$
238,968
West Covina
$
17,667
$
17,667
$
212,004
Whittier
$
22,083
$
22,083
$
273,000
Glendale
$
24 325
$
2432 5
$
291,904
Burbank
$27,363
$
328,361
Without Azusa
I With Azusa
$ 259,173
$ 257,895
CITY OF AZUSA
THIRD AMENDMENT TO
CITY MANAGER EMPLOYMENT AGREEMENT
(SERGIO GONZALEZ)
1. PARTIES AND DATE.
This Third Amendment to the City Manager Employment Agreement ("Third
Amendment") is made and entered into as of October 3rd, 2022 by and between Sergio Gonzalez
(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.
A. On April 1, 2018, the City entered into the City Manager Employment Agreement
with Sergio Gonzalez to serve as City Manager for the City of Azusa; and
B. On September 16, 2019, the City Council approved the First Amendment to the
City Manager's Employment Agreement, providing the City Manager with a one-time, 3% bonus
and increased the amount provided in the City Manager's Flexible Benefit Plan; and
C. On July 19, 2021, the City Council approved a Second Amendment to the City
Manager's Employment Agreement providing a salary increase, increased Health & Medical
Benefits and increasing the term of severance; and
D. In July and August of 2022, the City Council conducted a performance evaluation
of the City Manager, including a review of the City Manager's current compensation and benefits
and determined that further amendments are warranted; and
E. This Third Amendment is authorized pursuant to Section 12.1 of the Employment
Agreement; and
F. In accordance with Azusa Municipal Code Chapter 2, Article III, Division 2, the
City Council desires to approve the Third Amendment to the City Manager Employment
Agreement.
3. Terms.
3.1 Amendments to Employment Agreement. The City Council of the City of Azusa hereby
approves the following Amendments to the City Manager Employment Agreement:
A. Section 3.1 (Salary) of the Employment Agreement is hereby amended and restated
to read as follows:
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"3.1 Salary
City agrees to pay City Manager, and City Manager agrees to accept from City, as
compensation for services rendered by City Manager pursuant to this Agreement, an annual base
salary, commencing on the Effective Date, in the amount of Two Hundred Sixty Five Thousand
dollars ($265, 000. 00) (hereinafter "Annual Base Salary'% payable in installment payments in the
same manner and at the same times as salaries of other executive managers of the City are paid.
Commencing in April, 2019 and each year thereafter, said Annual Base Salary shall be
eligible for upward adjustments subject to the same procedures by which the salaries of other
executive managers of City are adjusted for meritorious performance, except that any such
adjustments shall be at the sole discretion of the City Council.
The term "Annual Base Salary" as used in this Agreement shall also include any such
adjustments approved by the City Council other than payments not eligible to be added to the City
Manager's Annual Base Salary pursuant to the terms of any applicable salary resolution of City.
The term "Monthly Base Salary" as used in this Agreement shall mean a sum of money equal to
one -twelfth (1112) of City Manager's Annual Base Salary as defined herein."
B. Section 6 (Vehicle Allowance) of the Employment Agreement is hereby deleted in
its entirety and restated to read as follows:
"6. Vehicle Allowance.
City agrees to pay to the City Manager, during the term of this Agreement and in addition
to other salary and benefits herein provided, the sum of six hundred dollars ($600) per
month, as a vehicle allowance to be used to purchase, lease, or own, operate and maintain
a vehicle. City Manager shall be responsible for paying for liability, property damage, and
comprehensive insurance coverage upon such vehicle and shall further be responsible for
all expenses attendant to the purchase, operation, maintenance, repair, and regular
replacement of said vehicle. The City shall reimburse the City Manager at the IRS standard
mileage rate for any business use of the vehicle beyond the greater City of Azusa area. For
purposes of this Section, use of the car within the greater City of Azusa area is defined as
travel to locations within a fifty (50) mile) radius of the City of Azusa City Hall.
C. Section 11.9 (Severance). Section 11.9 of the Employment Agreement is hereby
amended in its entirety to read as follows:
"11.9 Severance.
In the event this Agreement is terminated without cause or pursuant to section 1.1.3 of this
Agreement, the City Manager shall receive a severance payment, in a lump sum, equal to thirteen
(13) months of City Manager's then monthly Base Salary ("Severance Pay') in accordance with
the provisions of this section. Such severance payment shall be his sole remedy for termination
without cause or section 11, 3 of this Agreement.
The Severance Pay shall be paid only after the City Manager executes a waiver and release
agreement prepared by the City Attorney in a form substantially similar to that one set forth as
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Exhibit "A" to this Agreement. Notwithstanding the foregoing, if the City Manager is terminated
for cause, as set forth in this Agreement, then City Manager shall not be eligible for severance
payment."
3.2 Effective Date of Amendments & Remaining Provisions of Agreement. The
amendments shown in Section 3.1 (A through Q shall be effective retroactively on July 1, 2022.
Except as otherwise specifically set forth in this Third Amendment, the remaining provisions of
the Agreement shall remain in full force and effect.
IN WITNESS WHEREOF, the parties have executed this Third Amendment on this 3rd
day of October, 2022.
[SIGNATURES ON FOLLOWING PAGE]
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CITY OF AZUSA
By: e-
Robd6 Gonzales
Mayor
ATTEST:
APPROVED AS TO FORM:
By: -7e-- n. !'f'4---,
Marco . Martinez
City Attorney
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[INSERT NAME]
By:
Sergio Gonzalez