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HomeMy WebLinkAboutItem 16 - City Manager Performance Evaluation and Compensation AdjustmentHuman Resources Department www.santa-ana.org/human-resources Item # 16 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report April 1, 2025 TOPIC: City Manager Performance Evaluation and Compensation Adjustment AGENDA TITLE Approve a First Amendment to Employment Agreement Between the City of Santa Ana and Alvaro Nunez and Adopt a Resolution Approving the Council Appointee Salary Schedule RECOMMENDED ACTION 1. Approve a first amendment to the Employment Agreement Between the City of Santa Ana and Alvaro Nunez reflecting the positive City Manager performance evaluation conducted on March 18, 2025 and approving an adjusted annual salary for the City Manager of $340,200 (Agreement No. A-2025-XXX). 2. Adopt a resolution updating the City's Classification and Compensation Plan with the amended annual salary for City Manager and approving the Council Appointee Salary Schedule in compliance with the California Public Employees' Retirement System (CaIPERS) and Title 2 of the California Code of Regulations section 570.5. RESOLUTION NO. 2025-XXX entitled A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA TO EFFECT CERTAIN CHANGES TO THE Is] IW&YyWTV&AIalay-Al Ito] ►I_1►19XIEel ►51W21►6y_VA9to] ►1,W_1►1 GOVERNMENT CODE §84308 APPLIES: No DISCUSSION The City's employment agreement with Alvaro Nunez was first approved on August 6, 2024. The City Charter provides that the City Council shall conduct performance evaluations of its appointees on an annual basis. In addition, the City Manager's employment agreement provides for a review to evaluate the performance of the City Manager at least 120 days following the commencement of his job as the City Manager and annually thereafter. The City Council conducted a performance evaluation of the City Manager on March 18, 2025. The City Manager received a positive performance evaluation and proposed a salary increase to $340,200, effective March 18, 2025. The City Council can approve the proposed First Amendment to the City Manager Employment Agreement to grant a salary increase (Exhibit 1). The proposed resolution City Manager Performance Evaluation and Salary Adjustment April 1, 2025 Page 2 amends the City's Classification and Compensation Plan and approves the Council Appointee Salary Schedule to reflect the aforementioned City Manager salary adjustment (Exhibit 2). ENVIRONMENTAL IMPACT There are no environmental impacts associated with this action. FISCAL IMPACT Approval of these actions will result in an annual total increase of approximately $7,834 in Fiscal Year 2024-25. There are sufficient funds in the City Manager's Office budget (account 011-03-010-61000) to cover the increased costs in the current fiscal year. Estimated total General Fund fiscal impact for FY2025-26 is $27,591. EXHIBIT(S) 1. First Amendment to the Employment Agreement Between the City of Santa Ana and Alvaro Nunez affirming a positive performance evaluation and approving an annual salary adjustment for the City Manager; and 2. Resolution amending the City's Classification and Compensation Plan and approving the amended Council Appointee Salary Schedule Submitted By: Lori Schnaider, Executive Director of Human Resources Approved By: Kathryn Downs, Assistant City Manager FIRST AMENDMENT TO EMPLOYMENT AGREEMENT BETWEEN THE CITY OF SANTA ANA AND ALVARO NU&EZ THIS FIRST AMENDMENT TO EMPLOYMENT AGREEMENT BETWEEN THE CITY OF SANTA ANA AND ALVARO NUNEZ is entered into this 1 st day of April 2025, by and between Alvaro Nunez ("City Manager"), and the City of Santa Ana, a charter city and municipal corporation duly organized and existing under the Constitution and laws of the State of California ("City"). RECITALS A. The Parties entered into Agreement #A-2024-135 dated August b, 2024 ("Agreement") by which Alvaro Nunez agreed to serve as City Manager for City. The Agreement is current and in effect; B. On March 18, 2025, the City Manager received a positive performance evaluation and proposed a salary increase to $340,200; and C. The City Council desires to provide a salary increase to the City Manager. Now, therefore, in consideration of the mutual and respective promises, and subject to the terms and conditions of said Agreement, except as herein modified, the Parties agree as follows: THE PARTIES THEREFORE AGREE: I. SECTION 5, Compensation subsection a, Base Salarx, shall be amended to provide for an annual salary of three hundred forty thousand two hundred dollars and no cents ($340,200.00) retroactive to March 18, 2025. 2. Except as hereinabove modified by this First Amendment, the terms and conditions of said Agreement remain unchanged and in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to the Agreement the date and year first above written. ATTEST: CITY OF SANTA ANA Jennifer L. Hall City Clerk Valerie Amezcua Mayor [Signatures continue on the next page] 1 APPROVED AS TO FORM: Sonia R. Carvalho City Attorney By: �awtp- A.V c, ru. Laura A. Rossini Chief Assistant City Attorney Alvaro Nunez Employee Signature Page- FIRST AMENDMENT TO EMPLOYMENT AGREEMENT BETWEEN THE CITY OF SANTA ANA AND ALVARO NUNEZ 2 RESOLUTION NO. 2025-XXX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA TO EFFECT CERTAIN CHANGES TO THE CITY'S CLASSIFICATION AND COMPENSATION PLAN BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The City Council of the City of Santa Ana ("City") hereby finds, determines, and declares as follows: A. Section 1004 of the City Charter of the City requires the City Manager to prepare, install, and maintain a position classification and pay plan subject to civil service rules and regulations and the approval of the City Council. B. It is the City's practice to assign job titles that reflect the duties and responsibilities of the classification and are consistent with other classifications within the City's organizational structure, as well as comparable job titles in the labor market, while maintaining internal pay equity relationships and attracting and retaining qualified candidates. C. The City Council regularly amends the City's classification and compensation plan for all full-time and part-time classifications of officers and employees of the City of Santa Ana. D. The City Council approved a salary adjustment for the City Manager from $315,000 to $340,200 effective March 18, 2025. E. It is now desired to amend the City's classification and compensation plan to reflect the approved change to the City Manager's salary. Section 2. The Santa Ana City Council hereby approves an updated Salary Schedule for the Council Appointee unit, attached to this resolution as Exhibit A, reflecting classification and compensation amendments per previously approved City Council agreements and amendments to agreements, grouped by employee unit as recommended by the California Public Employees' Retirement System ("CaIPERS"), and in compliance with CaIPERS and Title 2 of the California Code of Regulations section 570.5. Section 3. This resolution supersedes Resolution No. 2024-060. Section 4. This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall attest and certify the vote adopting this resolution. Resolution 2025-XXX Page 1 of 3 ADOPTED this 1st day of April 2025. Valerie Amezcua Mayor APPROVED AS TO FORM: Sonia R. Carvalho City Attorney By:0 Laura A. Rossini Chief Assistant City Attorney AYES: Councilmembers NOES: Councilmembers IG1:3•�rG\I► 1i��11PI - Ii1STM NOT PRESENT: Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, Jennifer L. Hall City Clerk, do hereby attest to and certify the attached Resolution No. 2025- to be the original resolution adopted by the City Council of the City of Santa Ana on April 1, 2025. Date: Jennifer L. Hall City Clerk City of Santa Ana Resolution 2025-XXX Page 2 of 3 EXHIBIT A COUNCIL APPOINTEE SALARY SCHEDULE REVISED APRIL 1, 2025 EFFECTIVE MARCH 18, 2025 JOB TITLE JOB•D City Manager EM 01790 340,200 City Clerk EM 01990 195,083 Resolution 2025-XXX Page 3 of 3