2019/08/21 City of MenifeeSECOND AMENDMENT TO EMPLOYMENT AGREEMENT
This Second Amendment to Employment Agreement between the City of Menifee ("City")
and Armando G. Villa ("Manager") ("Second Amendment") is made this 21 st day of August,
2019.
RECITALS
A. On or about December 1 8, 2017 , City and Manager entered into that certain "Employment
Agreement" pursuant to which City hired Manager to serve as the City Manager of the
City of Menifee.
B. On or about June 20,2018, City and Manager entered into that certain "First Amendment
to Employnent Agreement" ("First Amendment") pursuant to which City and Manager
modified Manager's base salary.
C. On August7 ,2019, the City Council conducted a perforrnance evaluation of Manager and,
based upon that perforrnance evaluation, consideration in open session of revisions to the
agreement duration, compensation terms, severance and termination provisions, and
provisions relating to moving expenses and cash-out of accrued leave are all appropriate.
D. On August 27,2018, the City Council considered this Second Amendment which
authorizes (i) an extension of the term of the Employment Agreement, such that it will now
expire on December 31,2023; (ii) two increases in Manager's base salary spread over the
next approximately ten (10) months, (iii) a provision allowing for future cost of living
adjustments equal to those provided to the City's employees; (iv) an annual contribution to
Manager's defined contribution retirement program under Section 457 of the Internal
Revenue Code; (r) a commitment that the City Council will not terminate Manager without
cause for a period of six months followin g any general municipal election at which a new
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City Councilmember is elected; (vr) an eight month extension to the time window within
which City Manager may exercise his rights to recoup moving expenses, and (vii)
clarification that Manager may cash out accrued vacation and administrative leave twice
per year.
AGREEMENT
NOW, THEREFORE, the parties agree to the following modifications to the Employment
Agreement.
1. AMENDMENT TO SECTION 2 OF EMPLOYMENT AGREEMENT
Section 2 of the Employment Agreement is replaced, superseded, and amended in full as
follows:
On or before July l, 2023, and in the event Agreement is not earlier terminated, Manager
shall notify Council of the provisions of Section 2 of this Agreement, and within 90 days
thereafter Manager and Council shall meet to discuss whether Agreement shall be renewed
or not renewed, and if renewed, upon such terms as the parties may mutually agree to.
2. AMENDMENT TO SECTION 3(a) OF EMPLOYMENT AGREEMENT
Section 3(a) of the Employment Agreement is replaced, superseded, and amended in fuII
as follows:
(a)Serrara{rou by Citv Without Cause.Manager shall serve at the will and pleasure of
the Council, and the Council shall be entitled to discontinue the receipt of day-to-day
services from the Manager without cause. If the Council makes such election, or a
"negotiated settlement" for voluntary separation is approved by the Council, City agrees to
place Manager on administrative leave with full pay and benefits (less legally required or
authorized deductions) ("severance Pay") for the shortest of (i) until Manager finds new
full time employment, (ii) six months, and (iii) as many months as then remain on
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Manager's contract term (the "Administrative Leave Period"). At the conclusion of the
Administrative Leave Period, Manager shall be entitled to no further compensation or
benefits from City. In exchange for and as a condition to receipt of the Severance Pay,
Manager shall execute a release and waiver, in a form acceptable to the City Attorney,
releasing the City from any and all claims associated with Manager's termination.
3. AMENDMENT TO SECTION 3(e) OF EMPLOYMENT AGREEMENT
Section 3(e) of the Employnent Agreement is replaced, superseded, and amended in full
as follows:
(e) Effect of Citlr Elections on Terminations. Notwithstanding the other termination
provisions of this Agreement, City agrees not to terminate Manager's employment within
a period of 6 months after any general municipal election at which any new member of the
City Council is elected.
4. AMENDMENT TO SECTION 4(a) OF EMPLOYMENT AGREEMENT
Section 4(a) of the Employment Agreement is replaced, superseded, and amended in full
as follows:
Commencing on August 21 , 2079 City agrees to pay Manager an annual base salary,
exclusive of benefits, in the sum of $241,381 per year. Commencing on the date of the
opening of the Menifee Police Department (currently contemplated for July l, 2020), City
agrees to increase Manager's annual base salary, exclusive of benefits, to $257,262. In
addition to the foregoing, Manager's base salary shall be increased to reflect cost of living
increases in the same amounts as are made generally available to members of the City's
employees. Council shall conduct performance evaluations of Manager pursuant to
Section 7 of the Employment Agreement, at a minimum, at a meeting between May and
July of each year during the term of this Employment Agreement. If, during any
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performance evaluation, a majority of the Council deems Manager to have successfully
performed up to the date of such review, the Council may in its sole discretion grant
Manager an increase in base salary based upon, among other factors, merit, performance,
goals established by the Council, and consistency with the City's compensation policy in
effect at the time of said increase.
Council ffioy, in its discretion, reduce the salary of Manager due to budgetary constraints,
on condition that any such reduction shall not exceed the average reduction applicable to
all management employees of the City at the time of reduction in Manager's salary.
Furthermore, Manager, in his sole discretion may elect not to receive any salary increase
that may be granted hereunder; provided, however, if Manager elects not to receive a salary
increase provided hereunder, said salary increase shall be subsequently implemented, on a
prospective basis only, upon written request of Manager.
5. AMENDMENT TO SECTION 4(c) OF EMPLOYMENT AGREEMENT
Section 4(c) of the Employment Agreement is replaced, superseded, and amended in full
as follows:
(c) Retirement. Manager shall be classified as a Classic Member and shall be accrue
retirement benefits at the rate of the City's executive management employees (i.e., arate
of 2.7o/o at age 55, with an employee retirement contribution of 8%). In addition, City shall
annually contribute 7oh of Manager's base salary into a defined contribution plan under
Internal Revenue Code section 457.
6. AMENDMENT TO SECTION 5(b)OF EMPLOYMENT AGREEMENT
Section 5(b) of the Employrnent Agreement is replaced, superseded, and amended in full
as follows:
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(c)Personal Leave.Manager shall accrue personal leave at a rate of one I 60 hours per
AMENDMENT TO SECTION 5(d)OF EMPLOYMENT AGREEMENT
year (6.15 hours per pay period), with a maximum amount of accrued personal leave of
160 hours. Manager may, twice per year, "cash out" personal leave at an hourly rate based
on his base salary. Personal may not be "cashed out" upon cessation of employment with
City.
7.
Section 5(d) of the Employment Agreement is replaced, superseded, and amended in full
as follows:
(d)Administrative Leave Manager shall accrue administrative leave up to 80
hours per year (3.08 hours per pay period), with a maximum amount of administrative leave
of 80 hours. Manager may, twice per year, "cash out" administrative leave at an hourly
rate based on his base salary. Administrative leave may not be "cashed out" upon cessation
of employment.
8. AMENDMENT TO SECTION 5(O OF EMPLOYMENT AGREEMENT
Section 5(f) of the EmploSrment Agreement is replaced, superseded, and amended in full
as follows:
(0 Moving Expenses. Should the Managff opt to relocate within a 20 mile radius of
City Hall within 20 months from Effective Date, an expense reimbursement of up to $5,000
will be made to either a moving company or based on incurred expenses with original
receipts.
9. AMENDMENT TO SECTION 13 OF EMPLOYMENT AGREEMENT
Section 13 of the Employment Agreement is replaced, superseded, and amended in full as
follows:
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The Effective Date of this Second Amendment shall be August 21, 2019
Employment Agreement shall expire on December 31,2023.
IO. NO OTHER AMENDMENTS TO EMPLOYMENT AGREEMENT
This
Except as expressly provided in Section l, above, the remainder of the Employment
Agreement shall remain in full force and effect.
I1. EFFECTIVE DATE AND TERM
The Effective Date of this Second Amendment shall be August2l,2019.
IN WITNESS WHEREOF, the parties hereto have executed this Second Amendment as of
the date first set forth hereinabove.
CITY:MANAGER:
t-l),A'h/
Bill Zim^"WunV
Mayor
Armando illa
Date Agreement ratified by City Council in open session at a regular City Council Meeting
Arqu,\Y 7\,2ct9J-
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R
ATTEST:
. Manwaring
Ci lerk
APPROVED AS TO FORM:
at,
ey
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