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HomeMy WebLinkAboutContract 1579-3 FOURTH AMENDMENT TO EMPLOYMENT AGREEMENT FOR THE POSITION OF CITY MANAGER by and between the CITY OF CATHEDRAL CITY and CHARLES McCLENDON Dated March 14 , 2018 KIV#4819-3555-7983 vl FOURTH AMENDMENT TO EMPLOYMENT AGREEMENT FOR THE POSITION OF CITY MANAGER This Fourth Amendment to Employment Agreement for the Position of City Manager ("Fourth Amendment") is made and entered into and is effective this 14th day of March 2018, by and between the CITY OF CATHEDRAL CITY, a California municipal corporation, ("CITY") and CHARLES McCLENDON, an individual, ("EMPLOYEE") (hereinafter CITY and McCLENDON may be jointly referred to as the "Parties") on the following terms and conditions: RECITALS A. The Parties entered into that Employment Agreement for the Position of City Manager ("Employment Agreement") on January 22, 2014. The Employment Agreement was last amended on February 24, 2016, by the 3rd Addendum to Employment Agreement ("Third Amendment"). B. The purpose of this Fourth Amendment is to amend Sections 4.a "Salary"to provide EMPLOYEE with a 3% cost of living increase to his base salary, and 4.c"Deferred Compensation"to increase CITY's contribution to EMPLOYEE'S Deferred Compensation plan by $10,000 per year. OPERATIVE PROVISIONS NOW, THEREFORE, in consideration of the promises made and recited herein,the Parties do hereby enter into this Fourth Amendment which modifies and amends the Agreement and Amendments, as follows: 1. Section 4 Employee Compensation. Section 4.a. "Salary" of the Employment Agreement is amended to read as follows: "4.a. Salary. Employee shall be paid an annual base salary of$218,160. Payments shall be made in accordance with the City's normal payroll practices and procedures. Employee's salary may be adjusted at the sole discretion of the City Council. Any increase or decrease is not effective until the Parties draft and sign an amendment to this Agreement that states the new annual base salary and the effective date of that new salary which is adopted by the City Council at a duly noticed public meeting. If the Employee possesses a Master's Degree he is entitled to an educational stipend equal to five-percent (5%) of base salary pursuant to the Executive Policy, which is subject to change at the discretion of the City Council. "4.c. Deferred Compensation. Employee shall be eligible to participate in a joint contribution deferred compensation (457) plan selected by Employee from providers offered by the City. The City will make a prorated payment per pay period equally to the RIV#4819-3555-7983 vl 2 annual contribution to the plan in the same year equal to $16,200.00, provided such contribution payment, when combined with EMPLOYEE's contribution, does not exceed the maximum before tax contribution allowed by law. Employee will make a matching contribution of a minimum of$1,200 annually. GENERAL PROVISIONS 2. Remainder Unchanged. Except as specifically modified and amended in this Fourth Amendment, the Agreement and prior Amendments remain in full force and effect and binding upon the Parties. 3. Integration. This Fourth Amendment consists of pages 1 through 3 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 Fourth Amendment. 4. Effective Date. This Fourth 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 by McCLENDON. 5. Applicable Law. The laws of the State of California shall govern the interpretation and enforcement of this Fourth Amendment. 6. References. All references to the Agreement include all their respective terms and provisions. All defined terms utilized in this Fourth Amendment have the same meaning as provided in the Agreement and prior Amendments, unless expressly stated to the contrary in this Fourth Amendment. IN WITNESS WHEREOF,the Parties hereto have executed this Fourth Amendment on the date first indicated above. CITY OF CATHEDRAL Stan Henry Mayor gith4- #0 itu- Charles McClendon, City Manager ATTEST: APPROVED A TO - •RM: cA3--\ '11° Gary F. Howell, City Clerk Eric S. ail, City Attorney RIV#4819-3555-7983 vl 3