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07-21-2020 - AGENDA ITEM 15 CONSIDERATION OF AMENDMENT NUMBER ONE TO CITY OF WEST COVINA CITY MANAGER EMPLOYMENT AGREEMENT WITH DAVID CARMANY11/30/2020 Print Staff Report AGENDA ITEM NO. 15 DATE: July 21, 2020 TO: Mayor and City Council FROM: David Carmany City Manager AGENDA STAFF REPORT City of West Covina I Office of the City Manager SUBJECT: CONSIDERATION OF AMENDMENT NUMBER ONE TO CITY OF WEST COVINA CITY MANAGER EMPLOYMENT AGREEMENT WITH DAVID CARMANY RECOMMENDATION: It is recommended that the City Council adopt the following Amendment: AMENDMENT NUMBER ONE TO CITY OF WEST COVINA CITY MANAGER EMPLOYMENT AGREEMENT WITH DAVID CARMANY. BACKGROUND: On May 19, 2020, the City Council declared a fiscal emergency through the adoption of Resolution No. 2020- 46. In declaring the fiscal emergency, the City Council directed the City Manager to take any and all actions necessary to address the fiscal emergency, including, but not limited to, measures relating to personnel and benefit costs, operations, and reductions in service levels, and reviewing and negotiating changes to labor agreements, service agreements, and franchise agreements, to the extent permitted by law. Due to the fiscal emergency, the City Manager has volunteered to temporarily reduce the value of his benefits. DISCUSSION: Effective June 18, 2020, through December 31, 2020, the City Manager agrees to reduce the value of his employer -provided benefits, including, but not limited to, contributions to a Retirement Health Savings Plan, health insurance contributions, and Employee's automobile allowance, by eleven and a half percent (11.5%). The changes to the City Manager's benefits set forth in the Amendment will be retroactive to June 18, 2020. Prepared by: Helen Tran, Director Human Resources/Risk Management Fiscal Impact FISCAL IMPACT: The value of the City Manager's employer -provided benefits, including, but not limited to, contributions to a Retirement Health Savings Plan, health insurance contributions, and Employee's automobile allowance, by eleven and a half percent (11.5%). https://destinyhosted.com/print_ag_memo.cfm?seq=883&rev_num=0&mode=Extemal&reloaded=true&id=93782 1/2 11/30/2020 Print Staff Report Attachments Attachment No. 1 - Amendment to CM Contract CITY Achieve Fiscal Sustainability and Financial Stability COUNCIL GOALS & OBJECTIVES: https://destinyhosted.com/print_ag_memo.cfm?seq=883&rev_num=0&mode=Extemal&reloaded=true&id=93782 2/2 AMENDMENT NUMBER ONE TO CITY OF WEST COVINA CITY MANAGER EMPLOYMENT AGREEMENT WITH DAVID CARMANY This Amendment Number One to City of West Covina City Manager Employment Agreement with David Carmany ("Amendment") is made and entered into this 21 st day of July, 2020, by and between the CITY OF WEST COVINA, a municipal corporation ("City'), and DAVID CARMANY, an individual ("Employee"). City and Employee are collectively referred to herein as the "Parties" and individually as a "Party." WHEREAS, City and Employee entered into a City Manager Employment Agreement on August 20, 2019 (the "Agreement"); and WHEREAS, on May 19, 2020, the City Council declared a fiscal emergency through the adoption of Resolution No. 2020-46; and WHEREAS, in declaring the fiscal emergency, the City Council directed the City Manager to take any and all actions necessary to address the fiscal emergency, including, but not limited to, measures relating to personnel and benefit costs, operations, and reductions in service levels, and reviewing and negotiating changes to labor agreements, service agreements, and franchise agreements, to the extent permitted by law; and WHEREAS, due to the fiscal emergency, Employee has volunteered to temporarily reduce the value of Employee's benefits; and WHEREAS, City and Employee desire to amend the Agreement accordingly. NOW, THEREFORE, for valuable consideration, the receipt and sufficiency of which is hereby acknowledged, City and Employee agree as follows: Effective June 18, 2020 through December 31, 2020, Employee agrees to reduce the value of Employee's employer -provided benefits, including, but not limited to, contributions to a Retirement Health Savings Plan, health insurance contributions, and Employee's automobile allowance, by eleven and a half percent (11.5%). The manner of such reduction shall be as agreed upon by Employee and the Human Resources Director. 2. The changes to Employee's benefits set forth in this Amendment shall be retroactive to June 18, 2020 as set forth herein. 3. All other terms, conditions, and provisions of the Agreement not in conflict with this Amendment shall remain in full force and effect. 1of2 City Manager Employment Agreement with David Carmany Amendment One IN WITNESS WHEREOF, the Parties hereto have caused this Amendment to be executed as of the date and year first above written. CITY OF WEST COVINA EMPLOYEE Tony Wu, Mayor By: David Carmany ATTEST: Lisa Sherrick, Assistant City Clerk APPROVED AS TO FORM: Thomas P. Duarte, City Attorney 2 of 2 City Manager Ern ploym ent Ag reem ent with David Carm any AmendmentOne