2015 City Manager Employment Agreement and Amendment No. 1

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AMENDMENT NO. 1 TO EMPLOYMENT AGREEMENT THIS AMENDMENT NO. 1 ("First Amendment") to the July 21, 2015 Employment Agreement ("Agreement") executed by the City of Brea, a California municipal corporation ("City"), and William Gallardo ("Employee"), is dated March 20, 2018 for reference purposes. f aa[el"115 A. The parties executed the Agreement to: provide for City's retention of the services of Employee in the position of City Manager for a three-year term; encourage the highest standards of fidelity and public service on the part of Employee; provide a just means for terminating Employee's employment and the Agreement when City may desire to do so; and establish Employee's conditions of employment. B. The parties desire to amend the Agreement to: extend the term by five years; establish a procedure by which Employee may waive an automatic salary adjustment that otherwise would maintain a 10% separation between Employee's salary and the highest base salary of any other City employee; and authorize Employee to select a replacement City -provided automobile having similar equipment and specifications as the current City -provided automobile. NOW, THEREFORE, the parties agree as follows: 1. Amendment of Section 3. Section 3 ("Term") of the Agreement is amended to read as follows: "3. Term. This Agreement shall be effective July 4, 2015, and will remain in force and effect until close of business on June 30, 2023 unless the term hereof is extended by mutual agreement of City and Employee." 2. Amendment of Section 4. Section 4 ("Salary") of the Agreement is amended to read as follows: "4. Salary. (A) Subject to adjustment as provided in this paragraph 4, City shall pay Employee for the performance of Employee's duties under this Agreement a starting monthly base salary of $19,402.93, less customary and legally required payroll deductions. (B) Effective July 2, 2018, Employee's monthly base salary shall automatically be adjusted if necessary to be set, and then shall automatically be permanently maintained, at a level at least ten (10) percent greater than the maximum base salary specified in the executive compensation plan established by City Council resolution unless Employee waives a particular adjustment. Any such waiver shall: (i) be delivered in a notice to the City Council within ten (10) days of the effective date of a City Council resolution increasing the maximum base salary in the executive compensation plan; and (ii) apply only to the particular automatic - 1 of 2- 2159240.6