Loading...
HomeMy WebLinkAboutItem 25 - Evaluations for Appointees, Related Salary Adjustments, Contract Extension, Bonus Payments for Designated City Attorney Office Confidential Employees, and Compliance with the CalPERS and Title 2 of the CA Code of Regulations Section 570.5 Human Resources Department www.santa-ana.org/humanresources Item # 25 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report May 5, 2026 TOPIC: City Council Performance Evaluations for City Clerk, City Manager, and City Attorney; Amendments to Employment Agreements; Resolutions to Reflect Salary Adjustments and Bonus Payments AGENDA TITLE Consideration of the Positive Performance Evaluations for City Clerk, City Manager, and City Attorney, and Related Salary Adjustments, Contract Extension, Bonus Payments for Designated City Attorney Office Confidential Employees, and Compliance with the California Public Employees' Retirement System (CaIPERS) and Title 2 of the California Code of Regulations Section 570.5 RECOMMENDED ACTIONS 1. Adopt a resolution reflecting the positive City Clerk, City Manager, and City Attorney performance evaluations conducted on April 21, 2026 and approving an adjusted annual salary for the City Clerk and a three-year extension to the term for the City Manager, and RESOLUTION NO. 2026-XXX entitled A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AFFIRMING POSITIVE PERFORMANCE EVALUATIONS FOR THE CITY ATTORNEY, CITY CLERK, AND CITY MANAGER; APPROVING A SALARY ADJUSTMENT FOR THE CITY CLERK; AND APPROVING AN AMENDED AND RESTATED EMPLOYMENT AGREEMENT FOR THE CITY MANAGER THROUGH 2O30 2. Approve amendment to City Clerk employment agreement to reflect adjusted annual salary in the amount of$215,004 (Agreement No. A-2026-XXX), and 3. Approve an amended and restated employment agreement with the City Manager (Agreement No. A-2026-XXX), and 4. Adopt a resolution to amend Resolution No. 2021-026 creating a new classification to the unrepresented confidential middle management and approve special assignment pay for confidential employees in the City Attorney's Office; and Report of Settlements May 5, 2026 Page 2 RESOLUTION NO. 2026-XXX entitled A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA TO EFFECT CERTAIN CHANGES TO THE CITY'S CLASSIFICATION AND COMPENSATION PLAN TO AMEND RESOLUTION NO. 2021-026 TO CREATE A NEW CLASSIFICATION AND TO PROVIDE SPECIAL ASSIGNMENT PAY FOR SPECIFIED CONFIDENTIAL EMPLOYEES IN THE CITY ATTORNEY'S OFFICE 5. Adopt a resolution updating the City's Classification and Compensation Plan with the amended annual salary for City Clerk, 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 including documentation of the annual salary for the previous Acting City Clerk. RESOLUTION NO. 2026-XXX entitled A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA TO EFFECT CERTAIN CHANGES TO THE CITY'S CLASSIFICATION AND COMPENSATION PLAN AND RECOGNITION OF SALARY FOR THE PREVIOUS ACTING CITY CLERK GOVERNMENT CODE §84308 APPLIES: No DISCUSSION The City Council conducted annual evaluations on April 21, 2026 of its appointees, the City Clerk, the City Manager, and the City Attorney, in accordance with the City Charter. The City Clerk received a positive performance evaluation and negotiated a salary adjustment. It is recommended that the City Clerk's annual salary be adjusted to $215,004 effective April 21, 2026. The City Manager received a positive performance evaluation and negotiated a three- year contract extension through August 5, 2030. The City Attorney received a positive performance evaluation and requests authority to provide special assignment pay to confidential employees in the City Attorney's Office for duties above and beyond the normal scope of their work. The first proposed resolution affirms the positive performance evaluations and approves an adjusted City Clerk annual salary, an amended and restated employment agreement for the City Manager, and authorizes special assignment pay for specified, confidential employees in the City Attorney's Office (Exhibit 1). Also included is an amendment to the City Clerk's employment agreement to reflect the annual salary adjustment (Exhibit 2) and an amended and restated employment agreement with the City Manager to reflect a three-year contract extension (Exhibit 3). The second resolution is to amend the Classification and Compensation Plan to create a new classification to the unrepresented confidential middle management and provide special assignment pay to specified, Report of Settlements May 5, 2026 Page 3 confidential employees in the City Attorney's Office (Exhibit 4). The third resolution is to amend the City's Classification and Compensation Plan and approve the Council Appointee Salary Schedule to reflect the aforementioned City Clerk salary adjustment (Exhibit 5). Additionally, staff has determined a need to document prior salary information for the Acting City Clerk, effective September 1, 2022 through February 26, 2023, which is included in this resolution regarding the City Clerk to meet CalPERS requirements. ENVIRONMENTAL IMPACT There are no environmental impacts associated with these actions. FISCAL IMPACT Approval of these actions will result in an annual total contribution of approximately $4,350 in Fiscal Year 2025-26. There are sufficient funds in the City Clerk's Office budget (account 01107031-61XXX) to cover the increased costs in the current fiscal year. The estimated total General Fund fiscal impact for FY2026-27 is $22,621, with funding to be included in the proposed budget for City Council consideration. EXHIBIT(S) 1. Resolution affirming positive performance evaluations for Council appointees and approving an annual salary adjustment for the City Clerk, contract extension for the City Manager, and special assignment pay to confidential employees in the City Attorney's Office 2. Amendment to City Clerk Employment Agreement 3. Amended and Restated Employment Agreement with the City Manager 4. Resolution Changing Classification and Compensation Plan to Amend Resolution No. 2021-026 Confidential Classifications 5. Resolution Changing Classification and Compensation Plan (City Clerk) Submitted By: Lori Schnaider, Executive Director of Human Resources Approved By: Alvaro Nunez, City Manager RESOLUTION NO. 2026-XXX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AFFIRMING POSITIVE PERFORMANCE EVALUATIONS FOR THE CITY ATTORNEY, CITY CLERK, AND CITY MANAGER; APPROVING A SALARY ADJUSTMENT FOR THE CITY CLERK; AND APPROVING AN AMENDED AND RESTATED EMPLOYMENT AGREEMENT FOR THE CITY MANAGER THROUGH 2O30. WHEREAS, the City Council of the City of Santa Ana ("City") and Jennifer Hall ("City Clerk") entered into a City Clerk Employment Agreement ("City Clerk Agreement") dated February 7, 2023, whereby she agreed to serve as the City Clerk of the City. WHEREAS, the City Clerk Agreement provides that, as a result of a performance evaluation and, at the City Council's sole discretion, City Council may provide a salary increase and/or performance bonus. WHEREAS, the City Council conducted the City Clerk's annual performance evaluation on April 21 , 2026 resulting in a positive performance evaluation. WHEREAS, in the last performance review cycle the City Clerk did not receive an increase in Salary and, at this time, the City Clerk's compensation is below comparable cities so the City Council desires to provide a compensation adjustment and approves an updated annual salary for the City Clerk in the amount of $215,004, retroactively effective April 21 , 2026, and payable in installment payments in the same manner and at the same times as other City executive manager salaries are paid. Said salary adjustment shall be memorialized in an amendment to the Agreement presented concurrently with this Resolution. WHEREAS, the City and Alvaro N&iez entered into a City Manager Employment Agreement dated August 5, 2024, whereby he agreed to serve as the City Manager. WHEREAS, the City Council conducted the City Manager's annual performance evaluation on April 21 , 2026 resulting in a positive performance evaluation. WHEREAS, City Manager Nufiez declined to request an increase in compensation, preferring to focus on fiscal sustainability in the upcoming budget cycle and discuss potential future increases based on future positive performance. WHEREAS, at this time, the City Council desires to extend the term of the City Manager's Employment Agreement by three (3) years in recognition of the positive performance evaluation. Said term extension shall be memorialized in an Amended and Restated Agreement presented concurrently with this Resolution. Resolution 2026-XXX Page 1 of 3 WHEREAS, since April 16, 2012, Sonia R. Carvalho of Best, Best and Krieger LLP ("BBK") has served as City Attorney in accordance with a legal services agreement. WHEREAS, the current Legal Services Agreement with BBK was entered into on November 2, 2021 and provides for annual performance reviews. WHEREAS, the City Council conducted the City Attorney's annual performance evaluation on April 21 , 2026 resulting in a positive performance evaluation. WHEREAS, City Attorney Carvalho declined to request additional payment adjustments, but has requested special assignment pay for specified confidential employees in the City Attorney's Office in order to have flexibility in assigning work that might otherwise be done by outside counsel at additional cost to the City. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1 . The City Council hereby acknowledges that on April 21 , 2026 it conducted performance evaluations of the City Attorney, City Clerk, and City Manager resulting in positive performance evaluations for each. Section 2. Pursuant to the positive performance evaluations, the City Council approves a salary increase to $215,004, effective April 21, 2026, for the City Clerk; and approves an amended and restated employment agreement with the City Manager through August 5, 2030. Section 3. This Resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall attest to and certify the vote adopting this Resolution. ADOPTED this 51" day of May 2026. Valerie Amezcua Mayor APPROVED AS TO FORM: Sonia R. Carvalho City A torney By:, T mara Bogosian Senior Assistant City Attorney Resolution 2026-XXX Page 2of3 AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, Jennifer L. Hall, City Clerk, do hereby attest to and certify the attached Resolution No. 2026- to be the original resolution adopted by the City Council of the City of Santa Ana on May 5, 2026. Date: City Clerk City of Santa Ana Resolution 2026-XXX Page 3 of 3 FOURTH AMENDMENT TO CITY CLERK EMPLOYMENT AGREEMENT THIS FOURTH AMENDMENT to the City Clerk Employment Agreement is entered into on May 5, 2026 by and between Jennifer L. Hall, an individual ("Employee") and the City of Santa Ana, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California ("City"). City and Employee are also referred to collectively as "The Parties." RECITALS A. City and Employee entered into Agreement No. A-2023-014 dated February 7, 2023, by which Employee agreed to appointment as City Clerk for City("Agreement"); and B. On May 7,2024, after a positive performance evaluation,the City Council approved a First Amendment to the Agreement to adjust Employee's salary; and C. On November 19,2024,after a positive performance evaluation,the City Council approved a Second Amendment to the Agreement to adjust Employee' salary and to increase the amount of deferred compensation provided by the City; and D. On May 6, 2025, after a positive performance evaluation, the City Council approved a Third Amendment to the Agreement to increase the amount of deferred compensation provided by the City; and E. City Charter Section 705 and the Agreement provide for an annual performance evaluation for Employee; F. On April 21, 2026, Employee received a positive performance evaluation; and G. The City Council now desires to adjust Employee's salary to reflect said positive performance evaluation. The Parties therefore agree: 1. Section 3.1, Salary, is amended to increase the annual compensation from $195,083 to $215,004, effective April 21, 2026. 2. Except as modified by this Fourth Amendment, all terms and conditions of the Agreement, as amended, shall remain in full force and effect. [signature page to follow] Page 1 of 2 SIGNATURE PAGE - FOURTH AMENDMENT TO CITY CLERK EMPLOYMENT AGREEMENT IN WITNESS WHEREOF, the parties hereto have executed this Fourth Amendment to the Agreement on the date and year first written above. ATTEST CITY OF SANTA ANA Abigail Alcala Valerie Amezcua Assistant City Clerk Mayor APPROVED AS TO FORM EMPLOYEE SonjaRarvalho Citney By: ra Bogosian Jennifer L. Hall Senior Assistant City Attorney Page 2 of 2 AMENDED AND RESTATED EMPLOYMENT AGREEMENT BETWEEN THE CITY OF SANTA ANA AND ALVARO NUNEZ THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT ("Agreement") is made and entered into effective as of the 5th day of May, 2026, by and between the CITY OF SANTA ANA, a charter law city and municipal corporation ("City"), and ALVARO NUNEZ, an individual ("Nunez") and collectively with the City, (the "Parties"), both of whom understand as follows: RECITALS A. City and Alvaro Nunez entered into a City Manager Employment Agreement dated August 6, 2024, whereby he agreed to serve as the City Manager, as provided by the provisions of Section 500 of the City Charter of the City of Santa Ana; B. City Council conducted the City Manager's annual performance evaluation on April 21 , 2026 resulting in a positive performance evaluation. It is the desire of the City Council to (1) continue and secure the services of Nunez and to provide inducement for him to remain in such employment, (2) to make possible full work productivity by assuring Nunez's morale and peace of mind with respect to future security, and (3) to provide a means of terminating Nunez's services if City so desires to terminate his employment; C. Nunez desires to continue employment, on an at-will basis, as the City Manager of the City; and D. The Parties further desire to establish certain benefits and certain conditions of Nunez's employment. NOW, THEREFORE, in consideration of the mutual covenants herein contained, the Parties agree as follows: 1. Employment. a. Duties. The City hereby agrees to employ Nunez as City Manager of the City to perform the functions and duties specified in City's Charter and Municipal Code, and Nunez agrees to accept such employment. Nunez shall perform all duties and responsibilities imposed by law and industry standards, and such legally permissible further and proper duties and functions as the City Council may from time to time assign. Nunez shall hold office at the pleasure of the City Council and shall be the chief administrative officer and head of the administrative branch of the government of the City under the direction and control of the City Council except as otherwise provided in the Municipal Code. b. Work Efforts and Schedule. Nunez shall devote such time, interest, and effort to the performance of his duties as may be reasonably necessary to fulfill the requirements set forth in Section 1 .a. Nunez agrees to perform such services to the best of his ability, in an efficient and competent manner consistent with the standards of the profession. Due to the nature of the City Manager position, it is understood that flexibility is required for Nunez's work schedule, including without limitation the need for remote work and to modify his schedule within reason to adjust for attendance at meetings at night and during other times outside of ordinary business hours, at Nunez's reasonable discretion. Without limiting the generality of the foregoing, Nunez understands and agrees that the position is an exempt, salaried, full-time position that may involve expenditures of time in excess of forty (40) hours per week, and will also include time outside normal office hours, such as attendance at City Council and other community and public agency meetings. Nunez shall be exempt from paid overtime compensation and from Fair Labor Standard Act work hours restrictions. For purposes of this Section, "normal office hours" shall refer to work at City Hall when it is open for business, as determined by the City Council. C. Outside Professional Activities. Due to the nature of the City Manager position, it is understood Nunez shall not consult or engage in other non-City connected business or employment (aside from community volunteer activities) without the prior knowledge and express approval of the City Council. Nunez may, however, undertake limited outside activities, including (a) volunteer professional development activities, including activities on behalf of organizations like the League of California Cities and City Manager associations; (b) volunteer activities; (c) teaching, subject to City Council approval; and/or(d) other related activities, provided that such activities do not in any way interfere, conflict with, or adversely affect his employment as City Manager or the performance of his duties as provided herein. 2. Term. a. Commencement and Term. This Amended and Restated Agreement shall be effective as of May 5, 2026. The commencement date, August 6, 2024, of Nunez's service as City Manager, or August 6, shall continue to be referred to as the "Anniversary Date", and continued without interruption through August 5, 2030 ("Term"), unless terminated as provided in Section 3 herein. b. Renewal. On each of the Anniversary Dates in 2030, 2031 and 2032, respectively, this Agreement shall automatically renew for one (1) additional year(each automatic one (1)-year renewal shall be considered an extension of the Term), unless prior thereto, either (i) the Parties agree to enter into a formal, written amendment to mutually extend the Term of this Agreement for greater than a one (1)-year period, or (ii) the City Council notifies Nunez of its intent not to extend the Agreement for one additional year; provided, however, that in the event the City Council desires not to allow the automatic renewal of the Term of the Agreement, the City shall inform Nunez, in writing, no less than six (6) months prior to the end of the Term, as may have been from time to time extended in accordance with this Section. For the avoidance of doubt, this Section 2.b allows for two separate one-year renewals. 3. Termination, Resignation, and Severance Pay. a. At-Will. Nunez's employment with the City is on an at-will basis. Nothing in this Agreement shall prevent, limit or otherwise interfere with the right of the City Council to terminate, by at least two-thirds (1/3) membership vote of the City Council, the services of Nunez without cause, at any time and without notice other than a duly-noticed City Council meeting agenda, and complying with Section 3.d of this Agreement and the Santa Ana City Charter Section 500, as may from time to time be amended, unless waived in writing by N&iez. Notwithstanding the foregoing, Nunez may not be terminated under this provision for at-will termination by the City before or within a period of six (6) months following a municipal election (general, special, recall) or appointment at which one or more Council seats are contested on the ballot of such election (the "Election Cool-off Period"). For the avoidance of doubt, the City Council's decision during the Election Cool-off Period or otherwise to either(i) not renew, or provide notice of non-renewal of, the Agreement, as set forth in Section 2.b, above, or (ii) terminate "for cause," as set forth in Section 3.c, below, does not constitute a termination for purposes of this Section 3.a. b. Resignation. Nothing in this Agreement shall prevent, limit, or otherwise interfere with the right of Nunez to resign from his position, subject only to Nunez providing sixty (60) days' prior written notice to the City. Nunez's resignation shall be deemed accepted upon delivery of a written resignation to the City Council. Notwithstanding the foregoing, Nunez hereby expresses his intent to remain as City Manager for a period of not less than three (3) years from the date of execution of this Agreement. C. For Cause Termination. Notwithstanding the provisions of Section 3.a, City may terminate this Agreement "for cause" as defined below. In the event Nunez is terminated by the City for "cause" (i.e., a "For Cause Termination") then City may terminate this Agreement immediately and Nunez shall not be entitled to severance and will only be entitled to the compensation accrued up to the date of such For Cause Termination. For Cause Termination shall be defined for purposes of this Agreement to only mean any of the following: (1) conviction of any felony; (2) conviction of a misdemeanor arising directly out of the City Manager's duties pursuant to this Agreement involving a willful and intentional violation of law; (3) conviction of a crime of moral turpitude; (4) removal from office by the Grand Jury; (5) willful abandonment of duties; (6) malfeasance; (7) gross negligence; (8) fraud; or (9) serious misconduct, substantiated through an independent investigation (e.g., sexual harassment, discrimination), which would constitute a violation of City policy, or state or federal law. (Conviction for purposes of this Agreement includes a judgment entered after a trial, plea of guilty, or plea of nolo contendere.) d. Severance. In the event Nunez is terminated by the City Council at any time that Nunez is still willing and able to perform the duties of City Manager, and the termination is not a For Cause Termination (i.e., it is instead an "At Will Termination"), as defined in Section 3.a, above, then, subject to the limitations set forth in Government Code Section 53260, the City shall pay Nunez a lump sum cash payment settlement equal to twelve (12) months' base pay (as defined in Section 5, below) ("Severance"), exclusive of incentive or bonus pay, benefits and other non-cash remuneration, except health benefits which will be continued, at the same level of City contribution provided Department head level employees (and at the same coverage election as at the time of termination), for the same period as the severance or until Nunez begins other employment, whichever occurs first. To receive Severance, Nunez must execute and deliver to the City a Settlement Agreement and General Release, in a form satisfactory to the City, within twenty-one (21) days of the date of notice of the At Will Termination and given by at least two-thirds (2/3) membership of the City Council. In the event Nunez elects not to sign the Settlement Agreement and General Release, Nunez will not be entitled to Severance. The term At Will Termination shall include Nunez's resignation, but only if it is preceded by a formal request by at least two-thirds (2/3) of the of the membership of the City Council that he resign and is outside of the termination period specified in Section 2.b. The term At Will Termination does not include any of the following circumstances, for which Nunez will not be entitled to Severance: (1) his employment is terminated by the Council at any time for cause (i.e., a For Cause Termination); (2) Nunez resigns or retires, except for a resignation as referenced in the immediately preceding sentence; (3) in the event of death, or due to a medical condition or disability, even with reasonable accommodations, Nunez cannot perform the essential functions of the employment position; or (4) his Agreement is not renewed and Nunez has received notice of non-renewal at least six (6) months' prior to the expiration of the Term, per Section 2.b. e. Effect of Payment of Severance/Release. i. It is understood and agreed by the Parties that Nunez is employed at will, and that upon commencement of the City's payment of Severance to Nunez, any right of Nunez to continued employment with City is terminated. The promise and tender of payment to Nunez, of any Severance payable herein, is in lieu of any damages which Nunez might claim arising out of the At Will Termination of the employment relationship between the Parties, including lost wages, breach of contract, express or implied, breach of covenant of good faith and fair dealing, emotional distress and anxiety, or any similar contractual and personal injury claims. ii. This Section does not otherwise affect, waive, nor release any other rights Nunez may have under this Agreement or applicable law. f. Abuse of Office. Pursuant to Government Code sections 53243 et seq., if Nunez is convicted of a crime involving an abuse of his office or position, as defined below, all of the following shall apply upon final conviction: (1) if Nunez is provided with administrative leave pay pending an investigation, he shall be required to fully reimburse such amounts paid; (2) if the City, in its discretion, pays for the criminal legal defense of Nunez, in his official capacity, Nunez shall be required to fully reimburse such amounts paid; and (3) if this Agreement is terminated, any cash settlement related to the termination that Nunez may receive from the City shall be fully reimbursed to City. For purposes of this Section, "abuse of office or position" means either: (1) an abuse of public authority, including waste, fraud, and violation of the law under color of authority as those crimes are specifically defined under specific provision of California statute; or (2) a crime against public justice, including a crime described in Title 7 commencing with section 92 of the Penal Code or as specifically defined under separate provision of California statute. g. Public Communications. The City and Nunez agree that neither the City nor Nunez, shall make any written, oral or electronic statement to any member of the public, the press, or any City employee concerning Nunez's separation from the City, except in the form of a joint press release, the content of which is mutually agreeable to the City and Nunez. Consent of either Party to such joint press release shall not unreasonably be withheld. Either party may verbally repeat the substance of the joint press release or statement in response to any inquiry. This Section 3.g shall not apply in the event of a For Cause Termination. h. Survival. This Section will survive termination of the Agreement. 4. Revolving Door. Nunez must comply with Government Code Section 87406.3 for a period of one year after separating from service with City. This Section will survive termination of this Agreement. 5. Compensation. a. Base Salary. The City agrees to pay Nunez for the services required by this Agreement a base annual salary of three-hundred forty thousand two hundred Dollars ($340,200.00), payable in equal installments at the same time as other employees of the City are paid and subject to customary withholding for taxes and other required deductions. b. Other Salary Adjustments. On his Anniversary Date, the City may consider potential increases to Nunez's salary and/or any other benefits Nunez receives, and to make modifications in such amounts and to such extent (whether in the nature of a merit-based base salary increase, other compensation enhancement, or otherwise) based on performance, comparative salaries, and the finances of the City, as the City Council in its discretion may determine that it is desirable to do so, to take effect upon City Council approval. The City Council may, in its discretion, also determine to give Nunez exceptional performance recognition in the form of a one-time check for exceptional performance during the prior year, to take effect upon City Council approval. Any modifications to Nunez's compensation or benefits as contemplated in this Section 5.c require written amendment of this Agreement, approved by the City Council at a regular meeting. C. Bilingual Pay. If Nunez elects to qualify for bilingual skill pay, the City will pay him the highest amount available to management employees on a schedule consistent with other employees. 6. Automobile. The City agrees that upon proof of insurance coverage in an amount acceptable to the City, the City shall provide Nunez a City-owned vehicle for Nunez's exclusive use. The City will be responsible for paying for liability, property damage, and comprehensive liability insurance for the purchase, operation, maintenance, repair, and regular replacement of said vehicle. At Nunez's discretion, in lieu of electing to utilize a City-owned vehicle, he may elect to receive a monthly vehicle allowance of Five Hundred Dollars ($500.00) per month, which shall be paid on a schedule consistent with the unrepresented Executive Management Group. The vehicle allowance is intended to reimburse Nunez for mileage costs and the use of his private vehicle for City business. If Nunez elects the allowance he must provide his own automobile for his use in performing his duties and is responsible for all maintenance, repair, fuel and insurance expenses for said vehicle. Nunez agrees to adhere to all laws, regulations, and City policies applicable to vehicles, driving, or traffic when operating any vehicle on City- related business. 7. Cell Phone/Technology/Equipment. The City agrees to provide Nunez a cell phone, laptop computer in addition to a desktop computer, and a mobile device such as an IPad for purposes of conducting official City business. Nunez agrees the use of such equipment shall be for conducting City business only and shall not be used for personal purposes. 8. Leaves, Vacation, and Holidays. a. Sick Leave. Sick leave shall accrue and be capped at the same amount of hours per year as provided to the unrepresented Executive Management Group. Sick leave accrues and is accounted for on a prorated basis in each pay period. As an existing employee of City, Nunez has a bank of sick leave hours which he shall be entitled to retain. Sick leave may be used for personal illness, illness of a spouse or dependent, and doctor and dentist appointments or as otherwise provided under California law. Sick leave earned can be cashed in (into the City's Retirement Health Savings ("RHS") Plan) and/or CalPERS Service Credit at the rate of one hundred percent (100%) of its value upon death, retirement for disability or from service, or resignation. Accrued sick leave may also be converted to service credit under the "Credit for Unused Sick Leave" option of the Public Employees' Retirement System per Government Code section 20965. Any annual accrual over the maximum sick leave hours will be converted into Nunez's RHS Plan account during the first full pay period in January of each year. Nunez upon termination of employment with the City, shall be entitled to the amount of unused sick leave benefits credited to his RHS and/or CalPERS Service Credit account upon the effective date of separation. b. Vacation Leave. Nunez shall earn of the same amount of vacation hours per year as provided to the unrepresented Executive Management Group. Vacation leave accrues and is accounted for on a prorated basis in each pay period. As an employee of City, Nunez has a bank of vacation leave hours that he shall be entitled to maintain. Nunez shall accrue vacation leave at his existing normal rate. Nunez may use vacation as it accrues. Vacation accrued by Nunez and not taken shall be cashed out or paid to Nunez when separating from City service, calculated at Nunez's then-current base hourly rate in accordance with the same rules that apply to the unrepresented Executive Management Group; it shall not be necessary to carry Nunez on the payroll for the vacation period available at time of separation. In the event separation from the City is caused by Nunez's death, payment shall be made to Nunez's designated beneficiary or in accordance with the law. Vacation is transferable from one year to the next. C. Management Vacation (Administrative Leave). Management vacation leave shall accrue and be capped at the same amount of hours per year as provided to the unrepresented Executive Management Group for Nunez to be taken at his discretion, which shall be deemed earned on January 1 of each year. As a current employee of the City, Nunez has a bank of management vacation leave hours that he shall be entitled to maintain. The highest leave accrual, maximum accrual, and cash-out provisions provided to any represented employee's unit, will also be offered to Nunez. Such cash option may be eliminated or modified to the extent it is construed as overtime under Department of Labor Guidelines implementing provisions of the Fair Labor Standards Act. d. Holidays. Nunez shall be entitled to the same number of paid holidays per year as provided to other City unrepresented Executive Management Group employees. 9. Retirement, Insurance, and Other Benefits. Unless expressly addressed in this contract, Nunez will receive the same benefits as the unrepresented Executive Management Group. a. CaIPERS Retirement. The City agrees to execute all necessary agreements to enroll Nunez in the California Public Employees Retirement System ("CaIPERS") commensurate with the standard City employee retirement benefits program, as that program may be changed from time to time. During the term of this Agreement, City shall contribute to the employer's portion and as a Classic member under CaIPERS, Nunez will continue to be enrolled in the 2.7% at 55 Service Retirement Benefit formula. Nunez shall pay eight percent(8%) of CaIPERS reportable compensation toward the employer cost of the 2.7% at 55 enhanced retirement formula. This payment shall be implemented as cost-sharing pursuant to Government Code section 20516(f). b. Pre-Taxable Benefit. To the extent permitted by CalPERS and Internal Revenue Service regulations, this eight percent(8%) employee contribution shall be implemented through payroll deductions on a pre-tax basis. In addition, Nunez shall further contribute to the costs of his retirement benefits in such amounts, if any, hereafter approved by the City and applied to City general management employees prior to the expiration date of this Agreement. The City does not participate in Social Security for employees enrolled in CalPERS. Notwithstanding the foregoing, in the event CalPERS determines Nunez to be a classic member, Nunez and the City shall each pay the normal contribution in accordance with City policy. Nunez shall complete CaIPERS's "Reciprocal Self-Certification Form" and submit the form to the City within 10 business days after employment has commenced. C. Medical and Other Insurance. i. Medical. (a) City Contribution. The City shall provide health (medical, dental and vision) insurance benefits to Nunez. The City shall pay one hundred percent (100%) of the premium coverage for Nunez, and ninety percent (90%) of the premium coverage for all dependent care. Nunez shall be responsible for the remaining dependent care premium coverage, as well as all co-pays, charges, out-of-pocket expenses, and other costs required by the insurance provider or for any such co-pays, charges, out-of-pocket expenses, and other costs not covered by insurance. (b) In-Lieu Benefit. In lieu of selecting to use the City-provided above-referenced health benefit coverage, Nunez may elect a cash as commensurate with the standard unrepresented Executive Management Group employee health benefits. ii. Life Insurance and Long Term Disability. City shall provide Nunez with a term life insurance policy in the amount of five hundred thousand dollars ($500,000) and Nunez shall name the beneficiary of the policy. City shall further pay the premium for long-term disability insurance, as provided to unrepresented Executive Management Group. iii. Deferred Compensation (457 Plan). City agrees to provide Nunez an annual deferred compensation pursuant to section 457 of the Internal Revenue Code in an amount equal to the maximum contribution allowed by law, including the normal contribution and the catch-up contribution for individuals aged 50 or over. Payments shall be equally divided over twelve months and deposited by City into his 457 plan account each month. d. Other Insurance. City shall provide and pay for all other insurance mandated by State law. 10. Wellness Stipend. Nunez shall be entitled to reimbursement for expenses related to wellness (e.g., uninsured medical expenses, chiropractic visits, elective dental work, fitness memberships, etc.), upon submission of receipts to the City, up to a gross amount of one thousand Dollars ($1,000) per calendar year. 11. Professional Development. The City hereby agrees to budget for and pay travel and subsistence expenses of Nunez for professional travel, official travel, meetings necessary to pursue official and other functions for the City and to continue professional development of Nunez, to the extent deemed reasonable by the City Council. The City also agrees to pay for the travel and subsistence expenses of Nunez for short courses, institutes and seminars that are necessary for his professional development and for the good of the City. 12. Memberships. The City agrees to pay Nunez's membership dues and subscriptions in the Orange County City Manager's Association, the International City/County Management Association ("ICMA"), League of California Cities, California City Managers Foundation, and other similar organizations to which the City is a member, at City expense with prior City approval. Nunez shall have a reasonable right to attend meetings of such organizations. 13. General Expenses. The City recognizes that certain extraordinary expenses of a non-personal and job-affiliated nature may be incurred by Nunez, such as a business-related lunch or certain expenses incurred at a conference of a professional organization of which Nunez is a member. The City agrees to reimburse Nunez for reasonable expenses which are submitted to the City Council within thirty (30) days of occurrence for approval and which are supported by expense receipts, statements or personal affidavits, and an audit thereof in like manner as other demands against the City. For the avoidance of doubt, this paragraph is intended to apply to business expenses that Nunez himself directly incurs in performance of his job duties. 14. Performance Evaluation. The City Council shall conduct a "mini" review and evaluate the performance of Nunez at the first regular meeting that is at least 120 days following the commencement of his job as City Manager. At least annually thereafter, the City Council shall conduct a review and evaluate the performance of Nunez in his role as City Manager in accordance with the City Charter. At the election of either Nunez or the City Council, the format of such evaluation shall be a facilitated evaluation conducted by a third-party facilitator that is mutually agreeable to both the City Council and Nunez, at the City Council's expense. If neither the City Council nor Nunez elect for a facilitated evaluation, the format of the evaluation shall be as determined by the City Council. The City Council shall provide Nunez with an evaluation of his performance based on criteria established by the City Council with the assistance of Nunez and/or the facilitator, if so elected. Nunez shall be provided an adequate opportunity to discuss his evaluation with the City Council. The annual evaluations are expected to take place within one month before or after the Anniversary Date, or at any other time as requested by Nunez. Notwithstanding the foregoing, the City Council may evaluate Nunez at any time. 15. Indemnification. In accordance with and consistent with applicable law, the City shall provide Nunez with a defense and indemnification, and shall hold Nunez harmless from and against any and all claims, actions, or causes of action of any kind for which Nunez may be held liable and which arise out of or relate to Nunez's performance of his job duties at City, in accordance with the requirements of the California Government Code. In addition and in accordance with and consistent with applicable law, the City shall defend, at the City's expense and with counsel of the City's choosing, any action, claim, or proceeding in which Nunez is named and which alleges actions on the part of Nunez, or failures to act, within the scope of the above-referenced indemnity obligation. Notwithstanding the foregoing, any funds provided for the legal criminal defense of Nunez, if such were authorized, shall be fully reimbursed to the City if Nunez is convicted of a crime involving an abuse of his office or position, in accordance with Government Code section 53243.1 . This Section will survive the termination of the Agreement. 16. Bonding. The City shall bear the full cost of any fidelity or other bonds required of Nunez, acting as City Manager of the City, under any law or ordinance. 17. Other Terms and Conditions of Employment. The City Council may by resolution or contract amendment from time to time fix other terms and conditions of Nunez's employment as the City may determine relating to the performance of his duties as City Manager, provided that such terms and conditions are not inconsistent or in conflict with the provisions of this Agreement, the City's Municipal Code, and all applicable laws. 18. Notices. Notices given under this Agreement shall be in writing and shall be served personally or sent by Federal Express or some equivalent private overnight delivery service. Notices shall be deemed received at the earlier of actual receipt or two (2) days following transmission to an overnight carrier. City Attn: City Council City of Santa Ana 20 Civic Center Plaza Santa Ana, CA 92701 With a copy to: Santa Ana City Attorney City of Santa Ana 20 Civic Center Plaza Santa Ana, CA 92701 Nunez To the address on file with the City's Human Resource Department 19. Arbitration. Any controversy or claim arising out of the interpretation or performance of this Agreement, or otherwise pertaining to this Agreement or Nunez's appointment and service as the City Manager, shall be resolved by binding arbitration in Orange County, California, in accordance with the rules of the Judicial Arbitration and Mediation Services, Inc., or such other arbitration service that the City and Nunez may mutually select; and the arbitration award may be enforced as provided by California law. The City shall be solely responsible for the costs of administration and the costs of the arbitrator. 20. Assignment. This Agreement is not assignable by either the City or Nunez. The City and Nunez acknowledge that this Agreement is a personal services agreement for the personal services of the City Manager. 21. General Provisions a. The text herein shall constitute the entire agreement between the Parties. No representations have been made or relied upon except as set forth herein. The Agreement is deemed to have been prepared by all of the Parties hereto, and any uncertainty or ambiguity herein shall not be interpreted against the drafter, but rather, if such ambiguity or uncertainty exists, shall be interpreted according to the applicable rules of interpretation of contracts under the law of the State of California. The use of section headings in this Agreement is provided for convenience only and will not have any impact on the interpretation of particular provisions. b. If Nunez dies or becomes incapacitated during the Term of this Agreement, any accrued and unpaid wages provided by the terms of this Agreement shall be paid by City to Nunez's spouse or if no spouse, to Nunez's dependents. The Agreement shall be binding upon, or shall inure to the benefit of, the respective heirs, executors, administrators, successors and assigns of the Parties; provided, however, that Nunez may not assign Nunez's obligations hereunder. C. If any provision or portion hereof contained in this Agreement is held to be unconstitutional, invalid, or unenforceable, the remainder of this Agreement or portion thereof shall be deemed severable and shall not be affected and shall remain in full force and effect. d. This Agreement represents the entire understanding of the City and Nunez as to those matters contained herein, and no prior oral or written understanding shall be of any force or effect with respect to those matters covered by this Agreement. Except as specifically authorized by this Agreement, this Agreement may not be modified, altered or amended, except in writing approved by the City Council at a regular public meeting and Nunez, and signed by the Mayor and Nunez. e. Nunez is expected to conform to the ICMA Code of Ethics. Nunez shall not engage in any business or transaction, or have a financial or other personal interest or association, direct or indirect, that is in conflict with the proper discharge of his official duties or that would tend to impair the independence of his judgment or action in the performance of his official duties. Nunez shall also be subject to the conflict of interest provisions of the Government Code of the State of California, the City's Municipal Code, and any other conflict of interest regulations applicable to Nunez's employment with the City. f. This Agreement shall be construed in accordance with the laws of the State of California and the parties agree that venue shall be in the state court in the County of Orange, California. g. Nunez acknowledges that he has had the opportunity to consult legal counsel in regard to this Agreement, that he has read and understands this Agreement, that he is fully aware of its legal effect, and that he has entered into it freely and voluntarily and based on his own judgment and not on any representations or promises other than those contained in the Agreement. IN WITNESS WHEREOF, the City and Nunez have executed this Agreement as of the day and year first above written. NUNEZ ALVARO NUNEZ CITY OF SANTA ANA By: VALERIE AMEZCUA, MAYOR ATTEST: JENNIFER L. HALL, CITY CLERK APPROVED AS TO FORM: SOIT CARVALHO, CITY ATTORNEY By 191 -BodclsIAN SENIOR ASSISTANT CITY ATTORNEY RESOLUTION NO. 2026-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 TO AMEND RESOLUTION NO. 2021-026 TO CREATE A NEW CLASSIFICATION AND TO PROVIDE SPECIAL ASSIGNMENT PAY FOR SPECIFIED CONFIDENTIAL EMPLOYEES IN THE CITY ATTORNEY'S OFFICE 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 hereby finds, determines, and declares as follows: A. Section 1004 of the City Charter 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 classifications 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 employees and officers of the City. D. On June 1, 2021, the City Council adopted Resolution 2021-026 establishing and delineating the compensation and benefit plans for classifications designated as Unrepresented Confidential Administrative Management (CAM) and Unrepresented Confidential Middle Management (CMM) affording these classifications the same provisions and/or changes in salaries, compensation, and other benefits, unless specified otherwise, as provided to classifications represented by the Santa Ana Management Association (SAMA). E. On October 7, 2025, the City reached an agreement with SAMA on its memorandum of understanding and the City Council also adopted Resolution No. 2025-044 to approve updated Salary Schedules for compensation for CAM and CMM classifications. F. On April 21, 2026, City Council conducted its annual evaluation of the City Attorney which resulted in a positive performance evaluation. G. The City Attorney requested City Council approval to provide special assignment pay which may be provided for the duties above and beyond the Resolution 2026-XXX Page 1 of 3 normal scope of their work as identified by the City Attorney. They would receive 2.5% of base pay for the duration of their special assignment. H. Due to the increased responsibilities and roles, which go above and beyond the normal scope of their work, as identified by the City Attorney, the classification of Assistant City Attorney — Employee Relations (Excepted) will be added as part of the unrepresented, confidential employees. I. It is now desired to amend the City's classification and compensation plan as listed herein. Section 2. The Santa Ana City Council hereby amends the City's classification and compensation plan by creating the following classification: UNIT TITLE STEPS MIN MAX CMM Assistant City Attorney - Employee 17 $11,319 $16,799 Relations (Excepted) (CMM) Section 3. The Santa Ana City Council hereby approves the updated Salary Schedules for the unrepresented CAM and CMM units, attached to this resolution as Exhibit A, reflecting classification and compensation amendments per this and previously approved City Council resolutions, and grouped by employee unit, as recommended by CalPERS, and in compliance with CalPERS California Code of Regulations section 570.5. Section 4. The Santa Ana City Council amends Resolution No. 2021-026, Exhibit "J" as follows and attached hereto as Exhibit B: A. Adding the following to Exhibit "J" as follows: C. Special Assignment Pay For the positions of Chief Assistant City Attorney — Employee Relations (Excepted), Senior Assistant City Attorney — Employee Relations (Excepted), Assistant City Attorney — Employee Relations (Excepted), special assignment pay may be provided for the duties above and beyond the normal scope of their work as identified by the City Attorney. They would receive 2.5% of base pay for the duration of their special assignment. Section 5. The new classification and compensation amendments per this and previously approved City Council resolutions, and grouped by employee unit, as recommended by CalPERS, and in compliance with CalPERS California Code of Regulations section 570.5. [continued on next page] Resolution 2026-XXX Page 2of3 Section 6. That except as amended by this resolution, all other provisions of the City's classification and compensation plan shall remain in full force and effect. Section 7. This resolution is operative from and after the date upon which it is adopted. ADOPTED this 5th day of May, 2026. Valerie Amezcua Mayor APPROVED AS TO FORM: Sonia R. Carvalho City A torney By: Tama a Bogosian Senior Assistant City Attorney AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, Jennifer L. Hall, City Clerk, do hereby attest to and certify the attached Resolution No. 2026- to be the original resolution adopted by the City Council of the City of Santa Ana on May 5, 2026. Date: City Clerk City of Santa Ana Resolution 2026-XXX Page 3 of 3 EXHIBIT A UNREPRESENTED CONFIDENTIAL ADMINISTRATIVE MANAGEMENT (CAM) MONTHLY WAGE RATE SCHEDULE REVISED MAY 5, 2026 EFFECTIVE JULY 13, 2025 TO JULY 11, 2026 JOB TITLE JOB STEP STEP STEP STEP STEP CODE A B C D E Principal Employee Relations Analyst (CAM) 01782 10,503 11,026 11,579 12,158 12,768 Senior Employee Relations Analyst(CAM) 01783 9,763 10,251 10,763 11,302 11,869 EFFECTIVE JULY 12, 2026 TO JULY 10, 2027 JOB TITLE JOB STEP STEP STEP STEP STEP CODE A B C D E Principal Employee Relations Analyst(CAM) 01782 10,923 11,467 12,042 12,644 13,279 Senior Employee Relations Analyst(CAM) 01783 10,154 10,661 11,194 11,754 12,344 EFFECTIVE JULY 11, 2027 JOB TITLE JOB STEP STEP STEP STEP STEP CODE A B C D E Principal Employee Relations Analyst(CAM) 01782 11,251 11,811 12,403 13,023 13,677 Senior Employee Relations Analyst(CAM) 01783 10,459 10,981 11,530 12,107 12,714 Resolution 2026-XXX EXHIBIT A UNREPRESENTED CONFIDENTIAL MIDDLE MANAGEMENT(CMM) MONTHLY WAGE RATE SCHEDULE REVISED MAY 5, 2026 EFFECTIVE JULY 13,2025 TO JULY 11,2026 JOB TITLE JOB CODE 01 02 03 1 04 05 06 07 08 09 10 11 12 13 14 15 16 17 Assistant City Attorney-Employee Relations 01625 11,319 11,598 11,886 12,187 12,494 12,805 13,124 13,455 13,790 14,134 14,488 14,850 15,220 15,599 15,990 16,391 16,799 (Excepted) CMM (Effective Alay 17 2026 Assistant Director of Human Resources(CMM) 01836 12,494 12,805 13,124 13,455 13,790 14,134 14,488 14,850 15,220 15,599 15,990 16,391 16,799 17,222 17,652 18,093 18,541 Chief Assistant City Attorney-Employee 01651 13,790 14,134 14,488 14,850 15,220 15,599 15,990 16,391 16,799 17,222 17,652 18,093 18,541 19,007 19,482 19,969 20,469 Relations(Excepted) CMM Employee Relations Manager(CMM) 01781 11,319 11,598 11,886 12,187 12,494 12,805 13,124 13,455 13,790 14,134 14,488 14,850 15,220 15,599 15,990 16,391 16,799 Human Resources Operations Manager(CMM) 01551 11,319 11,598 11,886 12,187 12,494 12,805 13,124 13,455 13,790 14,134 14,488 14,850 15,220 15,599 15,990 16,391 16,799 Senior Assistant City Attorney-Employee 01631 13,124 13,455 13,790 14,134 14,488 14,850 15,220 15,599 15,990 16,391 16,799 17,222 17,652 18,093 18,541 19,007 19,482 Relations(Excepted) CMM EFFECTIVE JULY 12,2026 TO JULY 10,2027 JOB TITLE JOB CODE 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 Assistant City Attorney-Employee Relations 01625 11,772 12,062 12,361 12,674 12,994 13,317 13,649 13,993 14,342 14,699 15,068 15,444 15,829 16,223 16,630 17,047 17,471 (Excepted) CMM Assistant Director of Human Resources(CMM) 01836 12,994 13,317 13,649 13,993 14,342 14,699 15,068 15,444 15,829 16,223 16,630 17,047 17,471 17,911 18,358 18,817 19,283 Chief Assistant City Attorney-Employee 01651 14,342 14,699 15,068 15,444 15,829 16,223 16,630 17,047 17,471 17,911 18,358 18,817 19,283 19,767 20,261 20,768 21,288 Relations(Excepted) CMM Employee Relations Manager(CMM) 01781 11,772 12,062 12,361 12,674 12,994 13,317 13,649 13,993 14,342 14,699 15,068 15,444 15,829 16,223 16,630 17,047 17,471 Human Resources Operations Manager(CMM) 01551 11,772 12,062 12,361 12,674 12,994 13,317 13,649 13,993 14,342 14,699 1 5,068 15,444 15,829 16,223 16,630 17,047 17,471 Sniore Assistant City Attorney ey-Employee 01631 13,649 13,993 14,342 14,699 15,0 15,444 15,829 16,223 16,630 17,047 17,471 17,911 18,358 18,817 19,283 19,767 20,261 Relations(Excepted) CMM EFFECTIVE JULY 11,2027 JOB TITLE JOB CODE 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 Assistant City Attorney-Employee Relations 01625 12,125 12,424 12,732 13,054 13,384 13,717 14,058 14,413 14,772 15,140 15,520 15,907 16,304 16,710 17,129 17,558 17,995 (Excepted) CMM Assistant Director of Human Resources(CMM) 01836 13,384 13,717 14,058 14,413 14,772 15,140 15,520 15,907 16,304 16,710 17,129 17,558 17,995 18,448 18,909 19,382 19,861 Chief Assistant City Attorney-Employee 01651 14,772 15,140 15,520 15,907 16,304 16,710 17,129 17,558 17,995 18,448 18,909 19,382 19,861 20,360 20,869 21,391 21,927 Relations(Excepted) CMM Employee Relations Manager(CMM) 01781 12,125 12,424 12,732 13,054 13,384 13,717 14,058 14,413 14,772 15,140 15,520 15,907 16,304 16,710 17,129 17,558 17,995 Human Resources Operations Manager(CMM) 01551 12,125 12,424 12,732 13,054 13,384 13,717 14,058 14,413 14,772 15,140 15,520 15,907 16,304 16,710 17,129 17,558 17,995 Senior Assistant City Attomey-Employee 01631 14,058 14,413 14,772 15,140 15,520 15,907 16,304 16,710 17,129 17,558 17,995 18,448 18,909 19,382 19,861 20,360 20,869 Relations(Excepted) CMM Resolution 2026-XXX Exhibit B to Resolution No. 2026-XXX EXHIBIT J THE BASIC COMPENSATION AND BENEFIT PLAN FOR CLASSES OF EMPLOYMENT DESIGNATED AS UNREPRESENTED CONFIDENTIAL MIDDLE- MANAGEMENT (CMM) AND UNREPRESENTED CONFIDENTIAL ADMINISTRATIVE-MANAGEMENT (CAM). Unrepresented Confidential Middle-Management (CMM) and Unrepresented Confidential Administrative-Management (CAM) Basic Compensation and Benefit Plan Effective, July 1, 2021 and after. Section 1. Employer-Employee Relations in the Public Service of The City of Santa Ana Resolution 81-75, as authorized by California Government Code (Section 3500, et seq.) defines "Employee, Confidential" as, an employee who is assigned to perform work directly involved in the development, preparation or presentation of management positions with respect to employer-employee relations. Employee, Management means an employee having responsibility for formulating, administering, or managing the implementation of City policies or programs, including but not limited to, department and assistant department heads, division heads, and professional administrative staff employees employed to render advice and assistance pertaining to the conduct of legal, fiscal, budgetary, personnel management, and employer-employee relations affairs of the City. Section 2. Unrepresented Confidential Middle-Management (CMM) Classification and Compensation Plan. A. Unrepresented Confidential Middle-Management (CMM) Employee Classifications Assistant City Attorney — Employee Relations (Excepted) Assistant Director of Human Resources Chief Assistant City Attorney-Employee Relations (Excepted) Employee Relations Manager Human Resources Operations Manager Human Resources Business Systems Administrator Senior Assistant City Attorney-Employee Relations (Excepted) B. Schedule of Salaries: A schedule showing salary rate ranges for classifications of employment designated as unrepresented confidential middle-management (CMM) at the seventeen-step salary rate range referenced as Exhibit "B" of the City's Master Salary Schedule same as those middle-management (MM) represented Santa Ana Management Association (SAMA) classes of employment is listed as follows: I InrPnresented CMM Classifications Salary Range Assistant Director of Human Resources MM-26 Assistant City Attorney — Employee Relations (Excepted) MM-22 Chief Assistant City Attorney-Employee Relations (Excepted) MM-30 Employee Relations Manager MM-22 Human Resources Operations Manager MM-22 Human Resources Business Systems Administrator MM-18 Senior Assistant City Attorney-Employee Relations MM-28 (Excepted) Section 3. Unrepresented Confidential Administrative-Management (CAM) Classification and Compensation Plan. A. Unrepresented Confidential Administrative-Manaaement (CAM) Employee Classification Principal Employee Relations Analyst Senior Employee Relations Analyst B. Schedule of Salaries: A schedule showing salary rate ranges for classifications of employment designated as unrepresented confidential administrative- management (CAM) at the five-step salary rate range same as those administrative management (AM) represented by Santa Ana Management Association (SAMA) classes of employment as listed as follows: tJnrPprP-,PntPd CAM Classifications Salary Principal Employee Relations Analyst AM-737 Senior Employee Relations Analyst AM-722 The Unrepresented Confidential Management salary schedules contain several salary ranges; each salary range is shown in monthly amounts. The ranges are identified by a two-digit number preceded by the capital letters"MM"for Middle Management and"AM" for Administrative Management. The salaries within each salary range are identified by the minimum salary of the range up to the maximum salary of the range. Terminal Classifications. Should a classification be identified as a terminal classification, the capitalized letter 'T' shown within parenthesis [i.e., (T)] next to a classification title signifies a position classification that has been designated as "terminal" by formal City Council action and, as such, will be deleted from The Basic Classification and Compensation Plan for Unrepresented Confidential Management CMM or CAM classifications of employment when vacated by its last remaining incumbent. No new appointment may be made to a classification that has been designated as terminal. Section 4. Administration and Applicability of the Basic Classification and Compensation and Benefit Plan for Classifications of Employment Designated as Unrepresented Confidential Middle-Management (CMM) and Unrepresented Confidential Administrative-Management (CAM). A. Unless specified otherwise herein, Unrepresented Confidential Management listed in Section 2 and Section 3 of this Exhibit will be afforded, and/or subject to the same provisions and/or changes in salaries, compensation, and benefits including but not limited to; cost of living adjustments; bi-lingual pay; pay additives; fringe benefit plans and allowances; City's Section 125 Plan; group health, dental, term life, and long- term disability allowances and plans; cafeteria plan; wellness plan benefits; technology stipend; access to participation in the City's voluntary benefit plans (e.g., vision, flexible spending accounts, supplement life insurance, and 457(b) deferred compensation plan); CalPERS Retirement System; Retirement Health Savings Plan (RHS) participation, including any employer contribution to the employee's individual RHS plan or the same employer contribution to an association's retiree health savings or similar plan on behalf of the member; as provided and available to those represented in the Santa Ana Management Association (SAMA) unit. B. Compensation Plan Implementation. Upon implementation of the Basic Classification and Compensation Plan set forth in Sub-section 2.B and 3.B. of this Resolution Exhibit, a current incumbent of an Unrepresented Confidential Management CMM or CAM classification listed herein above unless specified otherwise herein, will be afforded, and/or subject to the same provisions in salaries, compensation, attendance, work day, and work week as provided and available to those represented in the SAMA unit. C. Temporary Uparade to a CMM or CAM Classification. Regular employees of the City who are incumbents of classes of employment not included in this resolution exhibit and who are temporarily upgraded into a higher classification for a limited duration to an CMM or CAM classification due to a current incumbent's leave of absence or out-of- class temporary appointment as defined in Section 4.D. below, shall receive a minimum five percent (5%) temporary upgrade pay as defined by CCR 571(a)(3) as "compensation to employees who are required by their employer or governing body to work in an upgraded position/classification of limited duration", and is intended to meet the definition of"Compensation Earnable"for Classic members of CalPERS as provided by the Public Employees' Retirement Law (PERL), and Government Code (G.C.) section 20636. D. Out-of-Class Appointment to a CMM or CAM Classification. Regular employees of the City who are incumbents of classes of employment not included in this resolution exhibit and who are appointed to an"out-of-class appointment" as defined in Gov. Code section 20480 of the Public Employees' Retirement Law (PERL) as, "an appointment to an upgraded position or higher classification by an employer or governing body in a vacant position for a limited duration not to exceed nine-hundred sixty (960) hours in a fiscal year". A "vacant position" refers to"a position that is vacant during recruitment for a permanent appointment". A vacant position does not refer to a position that is temporarily available due to another employee's leave of absence. Employees temporarily upgraded to a unrepresented management classifications designated as CMM or CAM shall receive a minimum five percent (5%) temporary upgrade premium as defined by CCR 571(a)(3) as "compensation to employees who are required by their employer or governing body to work in an upgraded position/classification of limited duration", and is intended to meet the definition of"Compensation Earnable" for Classic members of CalPERS as provided by the Public Employees' Retirement Law (PERL), and Government Code (G.C.) section 20636. E. Reallocation of Salary Rate Ranaes. When an employee is in a CMM or CAM classification, which is reallocated from the current salary rate range to a different salary rate range, the employee will retain the same salary he or she held prior to the reallocation. Section 5. Health and Welfare Benefits. The following insurance benefits available to Unrepresented Confidential Management employees are provided through the City's Section 125 Cafeteria Plan adopted in accordance with the provisions of Internal Revenue Code § 125. Under City Council Resolution No. 98-52, the City elected to be subject to the Public Employees' Medical & Hospital Care Act (PEMHCA) to provide medical insurance through CalPERS for management members. The City's contribution for each employee meets the statutory minimum using the "Unequal Method" California Government Code § 22892(c) (AB-2544). The City will contribute an allowance, which includes the PEMHCA statutory minimum towards the employee's cafeteria plan in the same amount as available to the SAMA unit covered under the PEMHCA plan. Section 6. Leave Accruals and Cash-Out Provisions. Unless otherwise provided, the same leave accrual, maximum accrual, and cash-out provisions provided to the members of the SAMA unit, will also be offered to the classifications listed in this resolution exhibit including but not limited to; sick, paid holidays, floating holidays , holiday closures , vacation , " must- use" vacation, management vacation, bereavement leave, military leave, jury duty, witness leave, catastrophic, and industrial/workers compensation leave. Section 7. Retirement Plan Contributions. A. The terms of the existing contract between the City and California Public Employees' Retirement System (CaIPERS) governing the City retirement benefits of Unrepresented Confidential Management employees covered by this Resolution are incorporated by reference herein. The City will make contributions to CaIPERS in accordance with its contract with CaIPERS for employees covered by said contract as amended. B. The California Public Employees' Pension Reform Act (PEPRA) went into effect on January 1, 2013. Based on consideration of various eligibility factors, PEPRA defines each employee as either a "classic" or "new" member of CaIPERS. C. 2.7% at 55 Service Retirement Benefit for Classic Miscellaneous Members. The City agrees to provide CMM and CAM employees covered by this Resolution, and who are defined as Classic Miscellaneous Members under the California Public Employees' Pension Reform Act (PEPRA) of 2013 (AB340), with the 2.7% at 55 Service Retirement benefit. D. Payment of 2.7% at 55 Service Retirement Benefit. Classic Miscellaneous CMM and CAM employees covered by this Resolution will contribute eight percent (8%) of CaIPERS reportable compensation toward the employer cost of the 2.7% at 55 enhanced retirement formula. This payment will be implemented as cost-sharing pursuant to Government Code Section 20516(f). 1. Pre-Taxable Benefit. To the extent permitted by CaIPERS and Internal Revenue Service regulations, this eight percent (8%) employee contribution will be implemented through payroll deductions on a pre-tax basis. E. 2.0% at 62 Service Retirement Benefit for New Miscellaneous Members. The City agrees to provide CMM and CAM employees covered by this Resolution who were appointed to their classification on or after January 1, 2013, and who are defined as new members under the California Public Employees' Pension Reform Act (PEPRA) of 2013 (AB340), with the 2.0% at 62 Service Retirement benefit. F. Payment of 2.0% at 62 Service Retirement Benefit. CMM and CAM employees defined in 7.E. (above) will contribute at least 50% of normal cost of the 2.0% at 62 retirement benefit. 1. Pre-Taxable Benefit. To the extent permitted by CalPERS and Internal Revenue Service regulations, the City will make the above employee deductions pre-tax contributions. G. Final Compensation for Pension Calculation. Final compensation for Classic Miscellaneous Members will be based on the highest annual average compensation earnable during the 12 consecutive months immediately preceding the effective date of their retirement, or some other 12 consecutive month period designated by the member. Final compensation Miscellaneous Members who are defined as New Members under PEPRA will be based on the highest annual average compensation earnable during the 36 consecutive months immediately preceding the effective date of their retirement, or some other 36 consecutive month period designated by the member. H. Deferred Retirement for Classic Miscellaneous Members as defined in Section D (above). The City will continue to make payments to CalPERS on behalf of each eligible affected employee in an amount necessary to pay one hundred percent (100%) of each employee's member contribution and report it to CalPERS as special compensation [Government Code §20636(C)(4)]. This contribution is known as Employer Paid Member Contribution (EPMC), which is equal to eight percent (8%) of reportable compensation for Classic Miscellaneous Members. Such payments will be credited to the individual employee's CalPERS account. Such payments are not an increase in base salary and no salary rate range applicable to any of the employees covered by this Resolution will be changed or deemed to have been changed by reason thereof. As a result, the City will not treat these payments as ordinary income and thus will not withhold federal or state income tax from said payments. The City previously received a ruling from the Internal Revenue Service confirming that such payments are deferred compensation and not ordinary income. In the event that the City receives a new ruling from the Internal Revenue Service that such payments are ordinary income of the employees instead of deferred compensation, the City's obligation to make such payments will discontinue and in place thereof the reportable compensation of each Classic Miscellaneous Member eligible for the 2.7% at 55 Benefits Formula will be increased by eight percent (8%). For the purpose of reporting an employee's compensation to CalPERS, the City will include these payments as if they were a part of the employee's reportable compensation. Section 8. Tuition Reimbursement Unrepresented Confidential Management employees are eligible to participate in the Training and Education Assistance Program provided for all regular, full-time employees of the City. Reimbursement will be based on the cost of tuition, required enrollment/registration fees, miscellaneous fees (health, parking, student union fees, etc.) and all required texts, eBooks and related material for each course. Maximum tuition reimbursement will be paid the same amount as available to represented SAMA members. Section 9. Retirement Health Savings (RHS) Plan A. Employees participate in the "Vantage Care" Retirement Health Savings Plan (RHS), which designated ICMA-RC as the administrator of the plan. The City shall make contributions into the individual accounts of Unrepresented Confidential Management employees as provided to the members of the represented SAMA unit. 1. Unrepresented Confidential Management employees will contribute one and one-quarter percent (1.25%) of base pay into their individual RHS account each pay period. 2. Unrepresented Confidential Management employees shall have the option to amend the current management plan design by mutual agreement of the majority including the SAMA membership within in the City's agreement with ICMA-RC. 3. The City will contribute one percent (1%) of employee's base pay deposited into their individual RHS account each pay period. Section 10. Deferred Compensation The City has established and maintains a deferred compensation plan pursuant to the provisions of Section 457(b) of the Internal Revenue Code. CMM and CAM employees covered under this resolution, at their sole discretion, may defer to have deposited into the City's 457(b) plan a portion of their compensation up to the maximum amount permitted by law. As permissible by law if the City is desirous of establishing a 401(a) deferred compensation plan at a future date, Unrepresented Confidential Management employees covered under this resolution, at their sole discretion, may elect to participate into said 401(a) plan upon its establishment, and defer a portion of their compensation up to the maximum amount permitted by law to the same extent as the SAMA unit. All contributions into the 457(b) and 401(a) plan are voluntary employee contributions and will meet the requirements of the Internal Revenue Code. Section 11. Miscellaneous Provisions A Catastrophic Leave Donation. Unrepresented Confidential Management employees will be eligible to donate and receive catastrophic leave donations as provided to all other represented SAMA members. B. At-Will Employment Relationship. Classifications; Chief Assistant City Attorney- Employee Relations and Senior Assistant City Attorney-Employee Relations are defined as not excepted by the Civil Service System as defined in Section 1002 of the City of Santa Ana Code of Ordinance, Charter Article X - Civil Service and are considered to be employed "at-will" as defined by the California Labor Code section 2922. The classifications identified in this section will be appointed by and report to the City Attorney and nothing in this Resolution Exhibit shall prevent, limit, or otherwise interfere with the right of the City Attorney or the City Manager to terminate employment at any time, with or without cause of an employee whose classification is listed in this section. C. Special Assignment Pay. For the positions of Chief Assistant City Attorney — Employee Relations (Excepted), Senior Assistant City Attorney — Employee Relations (Excepted), Assistant City Attorney — Employee Relations (Excepted), special assignment pay may be provided for the duties above and beyond the normal scope of their work as identified by the City Attorney. They would receive 2.5% of base pay for the duration of their special assignment. RESOLUTION NO. 2026-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 AND RECOGNITION OF SALARY FOR THE PREVIOUS ACTING CITY CLERK 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. On April 21 , 2026, the City Council approved a salary adjustment for the City Clerk to $215,004 annually effective April 21 , 2026. E. Pursuant to approval by the City Council on December 20, 2022, Senior Deputy City Clerk, Norma Orozco, temporarily served the City in the role of Acting City Clerk, retroactive to September 1, 2022 through February 26, 2023. F. During this temporary service to the City, Ms. Orozco received a monthly salary of $13,250.00. G. California Code of Regulations (CCR) Section 570.5 requires an acting city clerk for the City Council to take formal action to ensure that the compensation for an employee acting a temporary or interim position is recognized by CalPERS for retirement purposes. CCR Section 570.5 requires that all publicly available pay schedules, including those for temporary or interim appointments, be approved by the governing body, listed with a specific pay rate, and posted publicly. Resolution 2026-XXX Page 1 of 4 H. It is now desired to amend the City's classification and compensation plan to reflect the previously approved changes to the City Clerk's salary and provide the publicly available pay schedule for the prior Acting City Clerk. 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, and does hereby amend the Salary Schedule to include "Acting City Clerk" ,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 shall take effect immediately upon its adoption by the City Council, and the City Clerk shall attest and certify the vote adopting this Resolution. ADOPTED this 5th day of May 2026. Valerie Amezcua Mayor APPROVED AS TO FORM: Sonia R. Carvalho City Attorney By T mara Bogosian Senior Assistant City Attorney AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers Resolution 2026-XXX Page 2 of 4 CERTIFICATE OF ATTESTATION AND ORIGINALITY I, Jennifer L. Hall City Clerk, do hereby attest to and certify the attached Resolution No. 2026- to be the original resolution adopted by the City Council of the City of Santa Ana on May 5, 2026. Date: City Clerk City of Santa Ana Resolution 2026-XXX Page 3 of 4 EXHIBIT A COUNCIL APPOINTEE SALARY SCHEDULE REVISED MAY 5, 2026 EFFECTIVE APRIL 21, 2026 • : TITLE JOB CODE City Manager EM 01790 340,200 City Clerk (EM) 01990 $215,004 EFFECTIVE SEPTEMBER 1, 2022 THROUGH FEBRUARY 26, 2023 • : TITLE JOB CODE Acting City Clerk 01990 $159,000 EM Resolution 2026-XXX Page 4 of 4