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CC 12-03-2024 Item No. 13. Attachment G - Staff ReportCITY OF 19 CUPERTINO ADMINISTRATIVE SERVICES DEPARTMENT CITY HALL 10300 TORRE AVENUE • CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-3220 • FAX: (408) 777-3109 CUPERTINO.ORG CITY COUNCIL STAFF REPORT Meeting: December 3, 2024 Subject Approve the third amendment to the City Attorney's employment contract and revise the Appointed Employees' Compensation Program. Recommended Action A. Adopt Resolution No. 24-112 approving the third amendment to the City Attorney's employment contract; B. Adopt Resolution No. 24-113 to amend the Appointed Employees' Compensation Program effective December 3, 2024; and C. Adopt Resolution No. 24-114 approving Budget Modification No. 2425-370, increasing appropriations by $19,691, resulting in the use of unassigned fund balance of $19,691 Reasons for Recommendation The City and the City Attorney have reached an agreement on a third amendment to the City Attorney's employment contract. Staff is requesting that Council adopt Resolution No. 24-112 and approve this third amendment to the City Attorney's employment contract as well as the conforming changes to the Appointed Employees' Compensation Program. Key provisions of the third amendment to the employment contract are summarized below: An increase in the annual base salary to $310,500. Beginning on January 1, 2026, the City Attorney's salary shall be increased by the same percentage and at the same time as any discretionary across-the-board increase in base annual compensation granted to exempt management employees covered by the Unrepresented Employees' Compensation Program. An increase in severance payment from three (3) months to nine (9) months aggregate salary and medical benefit allowance. Title 2 of the California Code of Regulations, section 570.5, requires that the pay schedule of every CalPERS agency be approved and adopted by the agency's governing body pursuant to a public meeting. Next Steps Should Council approve the contract amendment, Administrative Services staff will work to update salary and benefits as necessary. Should Council not approve the contract amendment, compensation and benefits would remain unchanged. Sustainability Impact There is no sustainability impact resulting from the recommended action in this report. Fiscal Impact The Fiscal Year (FY) 2024-25 Final Adopted Budget includes funding for the full-time salaries and benefits of all approved positions in the City. The increased costs associated with the City Attorney contract amendment, prorated based on the start date, total $19,691. These costs were not anticipated at the time of budget adoption and therefore were not included in the budget. A budget amendment is required to account for the increased costs. It is recommended that salary and benefits appropriations in 100-15-141 be increased by $19,691, to be funded from the unassigned fund balance. The ending unassigned fund balance is estimated at $33.6 million for FY 2024-25. City Work Program (CWP) Item Not a CWP item. CWP Item Description Not Applicable. Council Goal Not Applicable. California Environmental Quality Act (CEQA) Not applicable. Prepared by: Vanessa Guerra, Human Resources Manager Reviewed by: Kristina Alfaro, Director of Administrative Services Michael Woo, Senior Assistant City Attorney Approved for Submission byL Pamela Wu, City Manager A tta c,h men ta- A - Draft Resolution approving the third Amendment to City Attorney Employment Agreement B - Draft Third Amendment to the City Attorney Employment Agreement C - Draft Resolution amending Appointed Employees' Compensation Program D - Amendments to the Appointed Employees' Compensation Program (Redline) E - Amendments to the Appointed Employees' Compensation Program (Clean) F - Draft Resolution approving budget modification