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AGENDA BILL Agenda Item No. 7(A) Date: November 12, 2013 To: El Cerrito City Council From: City Council Subcommittee for City Manager Performance Evaluation Subject: First Amendment of City Manager Employment Agreement ACTION REQUESTED Adopt resolution amending the employment contract between the City of El Cerrito and Scott Hanin, the City Manager. BACKGROUND The employment contract between the City and Mr. Hanin was originally approved in 2001, amended twice, and replaced with a new agreement May 2006. Since that time, his salary has been increased three times for inflation, in line with inflation adjustments provided to other management employees. In September, the Mayor and Council initiated a process for evaluating Mr. Hanin’s performance as City Manager. The Council appointed a Subcommittee of the Mayor and Mayor Pro Tem to negotiate with Mr. Hanin regarding this compensation. On the basis of the Council’s evaluation and the negotiation process, the Subcommittee recommends amendments to employment contract between the City and Mr. Hanin. ANALYSIS The Subcommittee’s recommendation is a 10% increase in base pay, starting with the first full pay period of October 2013. The proposed amendment is consistent with the Council’s opinion of Mr. Hanin’s work and based on the Subcommittee’s review of other city manager compensation. FINANCIAL CONSIDERATIONS No changes to the current fiscal year budget are required for the proposed amendment to the employment contract with Mr. Hanin; the revised compensation will be included in future years. ---PAGE BREAK--- Agenda Item No. 7(A) LEGAL CONSIDERATIONS The City Attorney prepared the proposed contract amendment and has reviewed this report. Reviewed by: Grego B. man, Ma r Attachments: 1. Resolution approving First Amendment to City Manager Employment Agreement 2. Amended City Manager Employment Agreement Page 2 ---PAGE BREAK--- Agenda Item No. 7(A) Attachment 1 1 RESOLUTION 2013–XX RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL CERRITO AMENDING CITY MANAGER EMPLOYMENT AGREEMENT WHEREAS, the employment agreement between the City of El Cerrito and Scott Hanin, the City Manager, was approved in 2001, amended twice, and replaced with a new agreement in 2006; and WHEREAS, in September 2013, the Mayor and City Council initiated a performance evaluation of the City Manager and appointed a Subcommittee of the Mayor and Mayor Pro Tem to negotiate a contract amendment with Scott Hanin; and WHEREAS, as a result of the evaluation process and contract negotiations, the Subcommittee recommended an amendment to the City Manager Employment Agreement. NOW THEREFORE, BE IT RESOLVED by the City Council of the City of El Cerrito that it approves the First Amendment to City Manager Employment Agreement, attached as Exhibit A. BE IT FURTHER RESOLVED, the City Council hereby authorizes the Mayor to execute the amended agreement. BE IT FURTHER RESOLVED, that this Resolution shall become effective immediately upon passage and adoption. I CERTIFY that at a regular meeting on November 19, 2013, the City Council of the City of El Cerrito passed this Resolution by the following vote: AYES: NOES: ABSENT: ABSTAIN: IN WITNESS of this action, I sign this document and affix the corporate seal of the City of El Cerrito on 2013. Cheryl Morse, City Clerk APPROVED: Gregory B. Lyman, Mayor ---PAGE BREAK--- Agenda Item No. 7(A) Attachment 2 FIRST AMENDMENT TO CITY MANAGER EMPLOYMENT AGREEMENT BETWEEN THE CITY OF EL CERRITO AND SCOTT HANIN This First Amendment to the City Manager Employment Agreement dated March 20, 2006 (“Agreement”) between the City of El Cerrito (“City”), a municipal corporation, and Scott Hanin (“City Manager”), an individual, is entered into as of October 1, 2013. 1. SECTION 4.A.1 AMENDED The first sentence of Section 4.A.1 of the Agreement is hereby amended to read, “As of the first full payroll period in October 2013, the salary for the position of City Manager shall be sixteen thousand and seventy-five dollars ($16,075).” 2. REMAINDER OF AGREEMENT UNCHANGED The remainder of the Agreement shall not be affected by this First Amendment and shall continue in full force and effect. IN WITNESS WHEREOF the Parties have executed this First Amendment as of the day and year first written above. CITY Greg Lyman, Mayor ATTEST: Cheryl Morse, City Clerk APPROVED AS TO FORM: Sky Woodruff, City Attorney CITY MANAGER Scott Hanin