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Home My Public Portal About11 8.I. First Amendment to Amended and Restated Employment Agreement for the position of City ManagerAGENDA ITEM 8.1. ADMINISTRATIVE SERVICES DEPARTMENT DATE: December 3, 2013 TO: The Honorable City Council MEMORANDUM FROM: Jose E. Pulido, City Manager By: Tracey L. Hause, Administrative Services Direct SUBJECT: FIRST AMENDMENT TO AMENDED AND RESTATED EMPLOYMENT AGREEMENT FOR THE POSITION OF CITY MANAGER RECOMMENDATION: The City Council is requested to approve the First Amendment to the Amended and Restated Employment Agreement dated November 6, 2012, (Attachment "A"), for the position of City Manager and authorize the Mayor to sign the First Amendment. BACKGROUND: 1. On October 6, 2009, the City and Jose E. Pulido entered into an Employment Agreement for the position of City Manager. The Employment Agreement provided the terms and conditions of Mr. Pulido's employment with the City, including compensation, insurance coverage and hours of work, among other things. 2. On July 20, 2010, the City and Mr. Pulido approved and executed the First Amendment to the Employment Agreement. The First Amendment temporarily reduced Mr. Pulido's compensation for Fiscal Year (FY) 2010-11 consistent with the reductions required of other City staff. 3. On August 2, 2011, the City and Mr. Pulido approved and executed the Second Amendment to the Employment Agreement. The Second Amendment changed certain negotiated terms and conditions of Mr. Pulido's employment based upon his performance review. 4. On June 19, 2012, the City Council approved the FY 2012-13 City Budget and granted a 2% cost of living adjustment to all full time and part-time City employees. 5. On November 6, 2012, the City Council approved an amended and restated Employment Agreement for the City Manager, which included amendments that brought his benefits in line with other City staff. City Council December 3, 2013 Page 2 of 3 6. On June 18, 2013, the City Council approved the FY 2013-14 City Budget and granted a 2% cost of living adjustment to all full time and part-time City employees. 7. On November 19, 2013, the City Council concluded Mr. Pulido's performance evaluation. After the conclusion of the City Manager's performance evaluation, the City Council and City Manager engaged in negotiations regarding the terms and conditions of his Employment Agreement and compensation package. These negotiations resulted in a proposed amendment to the "Vehicle Operation" Section of the Employment Agreement. This change, if approved, will provide the City Manager with a City hybrid powered vehicle for his use in the performance of his duties. When the hybrid powered vehicle is delivered sometime early in calendar year 2014, the current monthly vehicle allowance in the amount of $300.00 will cease at this time. CONCLUSION: It is recommended that the City Council approve the First Amendment to the Amended and Restated Employment Agreement for the position of City Manager. This agreement updates the terms and conditions of Mr. Pulido's employment consistent with the City's policies and with direction provided during the 2013 compensation negotiations. FISCAL IMPACT: Approval of this First Amendment to the Amended and Restate Employment Agreement will require a budget amendment for the purchase of the hybrid powered vehicle. Staff will return to the City Council with a request for an appropriation and approval of the purchase of the hybrid powered vehicle in January 2014. ATTACHMENT: A. First Amendment to Amended and Restated Employment Agreement for the Position of City Manager ATTACHMENT A FIRST AMENDMENT TO AMENDED AND RESTATED EMPLOYMENT AGREEMENT FOR THE POSITION OF CITY MANAGER by and between the CITY OF TEMPLE CITY IN JOSE E. PULIDO Dated December 4, 2013 LA 44818-4623-3623 vl ATTACHMENT A FIRST AMENDMENT TO AMENDED AND RESTATED EMPLOYMENT AGREEMENT FOR THE POSITION OF CITY MANAGER This First Amendment to Employment Agreement for the Position of City Manager ("First Amendment"), which is dated for reference as indicated on the cover page, is hereby entered into by and between the CITY OF TEMPLE CITY, a California charter city, ("CITY"), and Jose E. Pulido, an individual ("Pulido"), as follows: RECITALS A. City and Pulido entered into an Employment Agreement for the Position of City Manager on October 6, 2009 ('Original Agreement"). The Original Agreement was subsequently amended on July 20, 2010 ("First Amendment") and on August 2, 2011 ("Second Amendment"). On November 6, 2012, the Original Agreement, First Amendment and Second Amendment were superseded by an Amended and Restated Employment Agreement ("Current Agreement"), Under Section 2,6 of the Current Agreement, Pulido receives a vehicle allowance of Three Hundred Dollars ($300) per month to offset the cost of using his personal vehicle for City business. The parties now desire to amend Section 2.6 such that the vehicle allowance payments to Pulido will cease at such time as City takes delivery of a new hybrid vehicle and assigns such vehicle to Pulido for his exclusive use. OPERATIVE PROVISIONS NOW, THEREFORE, in consideration of the promises made and recited herein, the parties do hereby enter into this First Amendment which modifies and amends the Agreement as follows: AMENDMENT, The Current Agreement is hereby modified and amended as follows: 1.1 Section 2.6 "Vehicle Operation" is amended. Section 2.6 of the Current Agreement is hereby amended to read as follows: "2.6. City -Owned Vehicle. City will provide Pulido with a monthly vehicle allowance in the amount of three hundred dollars ($300) until City has taken delivery of a hybrid powered vehicle ("City -Owned Vehicle") and assigned it to City Manager for his exclusive use. The parties estimate that the City -Owned Vehicle will be delivered to City by January 2014. Until delivery and assignment of the City -Owned Vehicle, Pulido shall keep in good standing a liability insurance policy in an amount of not less than one hundred thousand dollars ($100,000.00) naming City as an additional insured on his personal vehicle and keep his personal vehicle in reasonable repair, shall obey all traffic laws relating to operation of the vehicle and shall use due care and caution in its operation. Upon delivery of the City -Owned Vehicle, City shall assign it to Pulido for his exclusive use in the performance of his duties as City Manager. Such use shall include personal use reasonably related to the performance of his duties such as travel to and from work. City shall directly pay for, or reimburse Pulido for, if necessarv, the cost of automobile registration, insurance, fuel and maintenance for the City -Owned vehicle. Upon the City's assignment of the City -Owned Vehicle to Pulido, City shall prorate the vehicle allowance for the month of delivery, and thereafter Pulido shall not be entitled to receive any other further vehicle allowance. Pulido shall keep the vehicle in reasonable repair, shall obey all traffic laws relating to operation of the City -Owned Vehicle and shall use due care and caution in its operation." GENERAL PROVISIONS. 1.2 Remainder Unchanged. Except as specifically modified and amended in this First Amendment, the Agreement remains in full force and effect and binding upon the parties. LA #4818-4623-3623 N -% ATTACHMENT A 1.3 Integration. This First Amendment consists of pages I through _ inclusive, which constitute 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 First Amendment. 1.4 Effective Date. This First Amendment shall not become effective until the date it has been formally approved by the CITY Council and executed by the appropriate authorities of the CITY and Pulido. 1.5 Applicable Law. The laws of the State of California shall govern the interpretation and enforcement of this First Amendment, 1.6 References. All references to the Agreement include all their respective terms and provisions. All defined terms utilized in this First 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 hereto have executed this First Amendment to the Agreement on the date and year first written above. CITY MANAGER THE CITY OF TEMPLE CITY Jose E. Pulido, City Manager Mayor ATTEST: APPROVED AS TO FORM Peggy Kuo, Acting City Clerk Eric S. Vail, City Attorney LA #4818-4623-3623 v 1 -3-