Special City Council

MINUTES

# CITY OF EASTVALE

# Special Meeting of the City Council

Monday, March 28, 2022 Special Meeting: 3:30 P.M.

Eastvale City Council Chambers 12363 Limonite Avenue, Suite 900 Eastvale, CA 91752

## 1\. CALL TO ORDER

The special meeting of the Eastvale City Council was called to order at 3:31 p.m. by Mayor Lorimore.

## 2\. ROLL CALL

Present: Councilmembers Dinco (via GoToWebinar), Councilmember Plott (via GoToWebinar), Yow (via GoToWebinar), Mayor Pro Tem Rigby, and Mayor Lorimore (via GoToWebinar).

Absent:

City Staff

Present: Acting City Manager Garcia, City Attorney Vega, and City Clerk/Communications Director Donohue were present at roll call. Other staff members were present and responded to questions.

## PLEDGE OF ALLEGIANCE

Councilmember Dinco led the Pledge of Allegiance.

3. CLOSED SESSION PUBLIC COMMENT – None

4. CLOSED SESSION ITEM(S) – None

## 5\. WORKSHOP

## 5.1 Appointment of Interim City Manager and Approval of Employment Agreement

City Attorney Vega summarized the staff report and answered related questions.

Mayor Lorimore opened the public comment period. With no one desiring to speak on this item, Mayor Lorimore closed the public comment period.

* * *

The City Council discussed the item.

On motion of Councilmember Plott and second by Councilmember Dinco, the City Council voted unanimously to adopt Resolution 22-19, appointing Henry Garcia to serve as Interim City Manager commencing March 29, 2022, due to the resignation of the City Manager and approving an Interim City Manager Agreement. As well as, discussing a timeline for hiring a permanent City Manager by the end of April.

ADJOURNMENT – The special meeting was adjourned at 3:46 p.m. The next regular meeting of the Eastvale City Council is scheduled for Wednesday, April 13, 2022 at 6:30 p.m.

Marc A. Donohue, MMC City Clerk/Communications Director

Eastvale City Council Special Meeting Minutes March 28, 2022 Page - 2

SPECIAL COUNCIL MEETING AGENDA Eastvale City Hall Council Chambers 12363 Limonite Avenue, Suite 900, Eastvale, CA 91752 Monday, March 28, 2022 Special Council Meeting: 3:30 PM City Councilmembers Clint Lorimore, Mayor Todd Rigby, Mayor Pro Tem Christian Dinco, Councilmember Brandon Plott, Councilmember Jocelyn Yow, Councilmember Bryan Jones, City Manager Erica Vega, City Attorney (Contract Legal Services) Marc Donohue, City Clerk/Communications Director This Agenda contains a brief general descrip*on of each item to be considered. Except as otherwise provided by law, no ac*on or direc*on shall be taken on any item not appearing on the following Agenda. Unless legally privileged, all suppor*ng documents, including staff reports, and any wri*ngs or documents provided to a majority of the City Council a0er the pos*ng of this agenda are available for review at Eastvale City Hall, 12363 Limonite Avenue, Eastvale, CA 91752 or you may contact the City Clerk’s Office, at (951) 361-0900 Monday through Thursday from 7:30 a.m. to 5:30 p.m. and available online at www.eastvaleca.gov. In accordance with AB 361 (Government Code sec*on 54953(e)), members of the City Council, the public, and others may aBend and par*cipate in this mee*ng remotely via GoToWebinar. If you wish to view the mee*ng and/or make public comment through GoToWebinar you may do so by logging on to GoToWebinar at the above stated date and *me via the following link: https://bit.ly/3IjMS2l. Members of the public may provide public comment by sending comments to the City Clerk’s Office by email at cityclerk@eastvaleca.gov or u*lize the “raise your hand” func*on in GoToWebinar to provide oral public comment during the designated public comment periods. Staff will monitor emails to the extent possible during the mee*ng. Email comments will be read into the record, with a maximum allowance of 3 minutes per individual comment, subject to the Council’s discre*on to reduce the amount of *me for public comments. Email comments received a0er the agenda item is heard will not be read into the record. In the event of a disrup*on to the GoToWebinar broadcast of the mee*ng, or the ability to receive public comment through GoToWebinar, the meeting will be recessed until remote public access is restored. In compliance with the Americans with Disabili*es Act, if you need special assistance to par*cipate in this mee*ng, you should contact the City Clerk’s Office at (951) 361-0900. Regular mee*ngs are recorded and made available on the City’s website at www.eastvaleca.gov. Mee*ng recordings are uploaded to the City’s website within 24 hours (unless otherwise noted) after the completion of the meeting. 1

1. CALL TO ORDER 2. ROLL CALL 3. CLOSED SESSION PUBLIC COMMENT Any member of the public may address the Council on items within the Council’s subject maer jurisdicon, but which are not listed on this agenda during PUBLIC COMMENTS. However, no acon may be taken on maers that are not part of the posted agenda. We request comments made on the agenda be made at the me the item is considered and that comments be limited to three minutes per person with a maximum of six minutes (me may be donated by one person). Please address your comments to the Council and do not engaged in dialogue with individual Council Members, City staff, or members of the audience. Blue speaker forms are available at the front table to the entrance of Council Chambers. 4. CLOSED SESSION ITEM(S) 5. CITY COUNCIL BUSINESS 5.1. Appointment of Interim City Manager and Approval of Employment Agreement Submitted by: Erica Vega, City Attorney RECOMMENDED ACTION(S): It is recommended that the City Council adopt a resolution appointing Henry Garcia to serve as Interim City Manager commencing March 29, 2022, due to the resignation of the City Manager and approving an Interim City Manager Employment Agreement. 6. ADJOURNMENT The next regular mee*ng of the Eastvale City Council is scheduled for Wednesday, April 13, 2022, at 6:30 p.m. at Eastvale City Hall Council Chambers, 12363 Limonite Avenue, Suite 900, Eastvale, CA 91752. We champion experiences that engage, excite, and elevate our commUNITY! With our… Kindness – selfless concern for all Grit – passion and resilience in everything we do Solutions-Driven – courageous, creative, and collaborative results AFFIDAVIT OF POSTING I hereby certify under penalty of perjury under the laws of the State of California, that the foregoing Agenda was posted at the following locations: City Hall, 12363 Limonite Avenue, Suite 910 and website of the City of Eastvale (www.eastvaleca.gov,) not less than 24 hours prior to the meeting. 2

______________________________________________________ Marc A. Donohue, MMC City Clerk 3

SPECIAL COUNCIL MEETING AGENDA Eastvale City Hall Council Chambers 12363 Limonite Avenue, Suite 900, Eastvale, CA 91752 Monday, March 28, 2022 Special Council Meeting: 3:30 PM City Councilmembers Clint Lorimore, Mayor Todd Rigby, Mayor Pro Tem Christian Dinco, Councilmember Brandon Plott, Councilmember Jocelyn Yow, Councilmember Bryan Jones, City Manager Erica Vega, City Attorney (Contract Legal Services) Marc Donohue, City Clerk/Communications Director This Agenda contains a brief general descrip*on of each item to be considered. Except as otherwise provided by law, no ac*on or direc*on shall be taken on any item not appearing on the following Agenda. Unless legally privileged, all suppor*ng documents, including staff reports, and any wri*ngs or documents provided to a majority of the City Council a0er the pos*ng of this agenda are available for review at Eastvale City Hall, 12363 Limonite Avenue, Eastvale, CA 91752 or you may contact the City Clerk’s Office, at (951) 361-0900 Monday through Thursday from 7:30 a.m. to 5:30 p.m. and available online at www.eastvaleca.gov. In accordance with AB 361 (Government Code sec*on 54953(e)), members of the City Council, the public, and others may aBend and par*cipate in this mee*ng remotely via GoToWebinar. If you wish to view the mee*ng and/or make public comment through GoToWebinar you may do so by logging on to GoToWebinar at the above stated date and *me via the following link: https://bit.ly/3IjMS2l. Members of the public may provide public comment by sending comments to the City Clerk’s Office by email at cityclerk@eastvaleca.gov or u*lize the “raise your hand” func*on in GoToWebinar to provide oral public comment during the designated public comment periods. Staff will monitor emails to the extent possible during the mee*ng. Email comments will be read into the record, with a maximum allowance of 3 minutes per individual comment, subject to the Council’s discre*on to reduce the amount of *me for public comments. Email comments received a0er the agenda item is heard will not be read into the record. In the event of a disrup*on to the GoToWebinar broadcast of the mee*ng, or the ability to receive public comment through GoToWebinar, the meeting will be recessed until remote public access is restored. In compliance with the Americans with Disabili*es Act, if you need special assistance to par*cipate in this mee*ng, you should contact the City Clerk’s Office at (951) 361-0900. Regular mee*ngs are recorded and made available on the City’s website at www.eastvaleca.gov. Mee*ng recordings are uploaded to the City’s website within 24 hours (unless otherwise noted) after the completion of the meeting. 1

1. CALL TO ORDER 2. ROLL CALL 3. CLOSED SESSION PUBLIC COMMENT Any member of the public may address the Council on items within the Council’s subject maer jurisdicon, but which are not listed on this agenda during PUBLIC COMMENTS. However, no acon may be taken on maers that are not part of the posted agenda. We request comments made on the agenda be made at the me the item is considered and that comments be limited to three minutes per person with a maximum of six minutes (me may be donated by one person). Please address your comments to the Council and do not engaged in dialogue with individual Council Members, City staff, or members of the audience. Blue speaker forms are available at the front table to the entrance of Council Chambers. 4. CLOSED SESSION ITEM(S) 5. CITY COUNCIL BUSINESS 5.1. Appointment of Interim City Manager and Approval of Employment Agreement Submitted by: Erica Vega, City Attorney RECOMMENDED ACTION(S): It is recommended that the City Council adopt a resolution appointing Henry Garcia to serve as Interim City Manager commencing March 29, 2022, due to the resignation of the City Manager and approving an Interim City Manager Employment Agreement. 6. ADJOURNMENT The next regular mee*ng of the Eastvale City Council is scheduled for Wednesday, April 13, 2022, at 6:30 p.m. at Eastvale City Hall Council Chambers, 12363 Limonite Avenue, Suite 900, Eastvale, CA 91752. We champion experiences that engage, excite, and elevate our commUNITY! With our… Kindness – selfless concern for all Grit – passion and resilience in everything we do Solutions-Driven – courageous, creative, and collaborative results AFFIDAVIT OF POSTING I hereby certify under penalty of perjury under the laws of the State of California, that the foregoing Agenda was posted at the following locations: City Hall, 12363 Limonite Avenue, Suite 910 and website of the City of Eastvale (www.eastvaleca.gov,) not less than 24 hours prior to the meeting. 2

______________________________________________________ Marc A. Donohue, MMC City Clerk 3

AGENDA STAFF REPORT City Council Meeting CITY COUNCIL BUSINESS Agenda Item No. 5.1 March 28, 2022 Appointment of Interim City Manager and Approval of Employment Agreement Prepared By: Erica Vega, City Attorney Recommended Action(s) It is recommended that the City Council adopt a resoluon appoinng Henry Garcia to serve as Interim City Manager commencing March 29, 2022, due to the resignaon of the City Manager and approving an Interim City Manager Employment Agreement. Summary With the resignaon of City Manager Jones, there are acons that are required to be taken by the City with respect to Acng City Manager Henry Garcia's employment in order to stay in compliance with CalPERS regulaons applicable when a member of CalPERS, such as the City, hires a CalPERS reree, such as Garcia, to fill a posion temporarily. Garcia has been employed pursuant to the CalPERS regulaons that allow the City to appoint a reree to fill a posion temporarily during an employee's leave of absence. For Garcia to connue to fill the city manager role temporarily, the City must comply going forward with the CalPERS regulaons that allow the City to appoint a reree to fill a position during a vacancy in the position. The proposed resoluon meets CalPERS requirements for appoinng a reree to a vacant posion, and also includes a new Employment Agreement between the City and Garcia that will supersede the exisng Employment Agreement. The changes to the Employment Agreement consist of small edits to reflect the change circumstances surrounding Garcia's employment (e.g., the city manager posion being vacant vs. leave of absence). Furthermore, a change in tle is proposed for Mr. Garcia from "acng" to "interim" city manager. "Acng" generally refers to an individual who is temporarily serving in a posion that is occupied by another. "Interim" generally refers to an individual who is 12363 Limonite Avenue | Suite 910 | Eastvale, CA 91752 951.361.0900 | eastvaleca.gov 4

temporarily serving in a vacant position. Background The City Council appointed Henry Garcia to serve as Acng City Manager at its meeng on January 12, 2022, while the City Manager was on a leave of absence. The City Manager tendered his resignation to the City Council, and that position will be vacant starting March 29, 2022. Environmental Not applicable. Strategic Plan Action - Priority Level: N/A | Target #: N/A | Goal #: N/A Not applicable. Fiscal Impact There is no fiscal impact associated with approving this resoluon and the new Employment Agreement. No changes are proposed to the compensaon provisions in the Employment Agreement. Garcia will connue to be paid an hourly rate of $111.76 per hour with no benefits. The hourly rate is established by a formula set forth in the laws applicable to CalPERS rerees working for CalPERS member agencies a>er rerement, and the City has no discreon to modify the hourly rate to be paid to Garcia. General Fund budget for the City Manager authorized posion will be ulized for the 2021-22 fiscal year; budget appropriaons for the following fiscal year will be made during the 2022-23 fiscal year budget adoption. Prior City Council/Commission Action January 12, 2022 - City Council approved an employment agreement with Henry Garcia for acng city manager services while City Manager Jones was on a leave of absence. March 23, 2022 - City Council accepted the resignaon of City Manager Jones effecve end of day March 28, 2022. Attachment(s) Attachment 1 - Resolution Appointing Interim City Manager Attachment 2 - Exhibit A to Resolution - Employment Agreement for Interim City Manager 12363 Limonite Avenue | Suite 910 | Eastvale, CA 91752 951.361.0900 | eastvaleca.gov 5

RESOLUTION NO. 22-XX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EASTVALE, CALIFORNIA, APPOINTING HENRY GARCIA AS INTERIM CITY MANAGER WHEREAS, on January 12, 2022, the City Council adopted Resolution No. 22-07 approving the hiring of CalPERS retiree Henry Garcia to serve as Acting City Manager pursuant to the provision of the Public Employees’ Retirement Law that permit the City to employ a CalPERS retired annuitant if the person has skills needed to perform work of a limited duration due to a leave of absence; and WHEREAS, Government Code section 21221(h) of the Public Employees’ Retirement Law permits the governing body to appoint a CalPERS retiree to a vacant position requiring specialized skills during recruitment for a permanent appointment, and provides that such appointment will not subject the retired person to reinstatement from retirement or loss of benefits so long as it is a single appointment that does not exceed 960 hours in a fiscal year; and WHEREAS, the City Council of the City of Eastvale (“City”) desires to appoint Henry Garcia as Interim City Manager for the City under Gov. Code section 21221(h), effective March 29, 2022; and WHEREAS, the employment agreement between Garcia and the City approved on January 12, 2022 has been amended to reflect the change from acting to interim city manager and revised employment agreement is attached hereto as Exhibit “A,” and WHEREAS, as required by the Public Employees’ Retirement Law, the City Council certifies the following:  The appointment of Henry Garcia as interim city manager shall only be made once;  Henry Garcia has not and will not receive a Golden Handshake or any other retirement-related incentive;  The compensation to be paid to Henry Garcia complies with the requirement that the compensation paid to retirees cannot be less than the minimum nor exceed the maximum monthly base salary paid to other employees performing comparable duties, divided by 173.333 to equal the hourly rate; and  Henry Garcia has not and will not receive any other benefit, incentive, compensation in lieu of benefit, or other form of compensation in addition to this hourly pay rate. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF EASTVALE DOES HEREBY FIND, DETERMINE, AND RESOLVE AS FOLLOWS: SECTION 1. The City Council hereby certifies the nature of the employment of Henry Garcia as Interim City Manager as described in the recitals above and incorporated herein by reference. The City Council finds that it is necessary to fill the critically needed position of Interim City Manager for the City of Eastvale because the current City Manager has tendered his 6

resignation effective March 29, 2022, thus leaving a critical position vacant; and the orderly functioning of the City to achieve compliance with the Municipal Code, relevant state laws and the direction of the Eastvale City Council requires a capable and competent person be in place as the Interim City Manager. SECTION 2. The City Council hereby appoints Henry Garcia as Interim City Manager and approves the revised Employment Agreement between the City and Henry Garcia attached hereto as Exhibit “A” and authorizes the Mayor to execute the revised Employment Agreement. PASSED, APPROVED AND ADOPTED this 28th day of March, 2022. __________________________________________ Clint Lorimore Mayor APPROVED AS TO FORM: ATTEST: __________________________________________ __________________________________________ Erica Vega Marc A. Donohue, MMC City Attorney City Clerk/Communications Director 7

STATE OF CALIFORNIA) COUNTY OF RIVERSIDE ) § CITY OF EASTVALE ) I, Marc A. Donohue, City Clerk/Communications Director of the City of Eastvale, California, do hereby certify that the foregoing City Council Resolution No. 22-XX, was duly adopted by the City Council of the City of Eastvale, California, at a meeting held on the 28th day of March, 2022, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ____________________________________ Marc A. Donohue, MMC City Clerk/Communications Director 8

RIV #4877-2593-9720 v2 1 EMPLOYMENT AGREEMENT For INTERIM CITY MANAGER SERVICES This Employment Agreement (“Agreement”) is made and entered into this 29th day of March, 2022 (“Effective Date”), by and between the CITY OF EASTVALE, a municipal corporation authorized and existing under the laws of the State of California (hereinafter referred to as “CITY”) and HENRY GARCIA (“GARCIA”), an individual, on the following terms and conditions. CITY and GARCIA may be collectively referred to herein as the “Parties.” This Agreement is made in consideration of the following facts, among others. RECITALS A. CITY desires to employ the services of GARCIA as its Interim CITY Manager, temporarily, to carry out the duties and responsibilities of City Manager as provided for by the Eastvale Municipal Code, in consideration of and subject to the terms, conditions, and compensation set forth in this Agreement. B. CITY has an immediate need for an Interim City Manager position involving specialized skills and training and which is critically necessary to the on-going duties and functions of the CITY due the City Manager resigning his employment with the City effective March 29, 2022. C. GARCIA represents that he is a retired annuitant and person receiving a benefit from and enrolled in the California Public Employees’ Retirement System (“CalPERS”) within the meaning of Government Code §§ 7522.56 and 21221(h). GARCIA acknowledges that he is restricted to working no more than a combined 960 hours for CITY, a state agency, or other CalPERS contracting agencies (collectively “CalPERS Agencies”) during CITY’s 2021-2022 fiscal year, or any subsequent fiscal year, and that his compensation is statutorily limited as provided in Government Code § 7522.56(d). GARCIA represents, and by execution of this Agreement, certifies that he has not received any unemployment compensation based on prior retired annuitant employment with any CalPERS Agencies during the 12-month period preceding the effective date of this Agreement. GARCIA further represents his CalPERS retirement date became effective prior to the 180-day period preceding the effective date of this Agreement; that he has not received a retirement incentive upon retirement within the meaning of Government Code § 7522.56(g), and that he has attained normal retirement age within the meaning of Government Code § 21220.5. GARCIA further represents that he has not been previously appointed as an interim employee by the CITY to a vacant position during the recruitment for a permanent replacement. D. GARCIA desires to accept employment as Interim City Manager in consideration of and subject to the terms, conditions, and compensation set forth in this Agreement. E. CITY has determined that it is necessary to hire GARCIA by virtue of his significant experience as a City Manager. 9

RIV #4877-2593-9720 v2 2 F. CITY and GARCIA entered into an Employment Agreement on January 12, 2022, to serve as Acting City Manager while the City Manager was on a leave of absence. It is the intent of the parties that this Agreement for Interim City Manager Services supersede the prior agreement for Acting City Manager Services as of the Effective Date. OPERATIVE PROVISIONS In consideration of the promises and covenants contained herein, the parties agree as follows: 1. Position and Duties. 1.1 Position. GARCIA accepts employment with CITY as its Interim City Manager and shall perform all functions, duties and services set forth in Section 1.4 [Duties] of this Agreement. GARCIA shall provide service at the direction and under the supervision of the City Council. It is the intent of the parties that GARCIA, as the Interim City Manager, shall keep the City Council fully apprised of all significant ongoing operations of City. Toward that end, GARCIA shall report directly to the City Council and will periodically, or as may be otherwise specifically requested by the City Council, provide status reports to the City Council on his activities and those of CITY. 1.2 Term. GARCIA shall commence the performance of his duties as the Interim City Manager on March 29, 2022 (“Commencement Date”). This Agreement shall expire as of the first of the following to occur: (i) upon the hiring of a permanent City Manager; (ii) upon GARCIA working his 960 th hour (for CITY or any other CalPERS Agencies) during CITY’s 2021-2022 fiscal year, or any subsequent fiscal year, as a retired annuitant; or (iii) upon termination of the Agreement by either GARCIA or CITY as provided in Section 4 [Termination] of this Agreement. 1.3 At-Will. GARCIA acknowledges that he is an at-will, temporary employee of CITY who shall serve at the pleasure of the City Council at all times during the period of his service hereunder. The terms of CITY’s personnel rules, policies, regulations, procedures, ordinances, and resolutions (collectively “Personnel Policies”), as they may be amended or supplemented from time to time, shall not apply to GARCIA, and nothing in this Agreement is intended to, or does, confer upon GARCIA any right to any property interest in continued employment, or any due process right to a hearing before or after a decision by the City Council to terminate his employment, except as is expressly provided in Section 1.2 [Term] or Section 4 [Termination] of this Agreement. Nothing contained in this Agreement shall in any way prevent, limit or otherwise interfere with the right of CITY to terminate the services of GARCIA, as provided in Section 1.2 [Term] or Section 4 [Termination]. Nothing in this Agreement shall prevent, limit or otherwise interfere with the right of GARCIA to resign at any time from this position with CITY, subject only to the provisions set forth in Section 1.2 [Term] or Section 4 [Termination] of this Agreement. This at-will Employment Agreement shall be expressly subject to the rights and obligations of CITY and GARCIA, as set forth in Section 1.2 [Term] or Section 4 [Termination] below. 10

RIV #4877-2593-9720 v2 3 1.4 Duties. GARCIA shall serve as the Interim City Manager and shall be for the term of this Agreement vested with the powers, duties and responsibilities of the City Manager as set forth in ordinances and resolutions of the CITY, including without limitation, those set forth in the Eastvale Municipal Code and to perform other legally permissible and proper duties and functions as the City Council may from time to time assign. It is the intent of the City Council for the Interim City Manager to function as the chief executive officer of CITY’s organization. GARCIA shall provide such other services as are customary and appropriate to the position of Interim City Manager. GARCIA shall devote his best efforts and attention to the performance of these duties. 1.5 Hours of Work. GARCIA shall devote the time necessary to adequately perform his duties as Interim City Manager. The parties anticipate that GARCIA will work approximately thirty (30) to thirty-five (35) hours per week allocated between regular business hours and hours outside of regular business hours including, without limitation, attendance at regular and special City Council meetings, attendance at such community events and CITY functions as the Council may direct. Toward that end, GARCIA shall be allowed reasonable flexibility in setting his own office hours, provided the schedule of such hours provides reasonable availability to the City Council, City staff, and members of the community during regular CITY business hours and for the performance of his duties and of CITY business. 1.6 Other Activity. In accordance with Government Code Section 1126, during the period of his employment, GARCIA shall not accept, without the express prior written consent of the City Council, any other employment or engage, directly or indirectly, in any other business, commercial, or professional activity, whether or not to pecuniary advantage, that is or may be competitive with CITY, that might cause a conflict-of-interest with CITY, or that otherwise might interfere with the business or operation of CITY or the satisfactory performance of GARCIA’s duties as Interim City Manager. Notwithstanding the foregoing, the City Council acknowledges that at the time of the execution of this Agreement GARCIA has existing business commitments that GARCIA intends to fulfill and City Council agrees that fulfilling these commitments does not violate this Section 1.6. GARCIA will ensure that his existing business commitments do not interfere with his ability to perform his duties as Interim City Manager. 2. Compensation. 2.1 Rate of Pay. For all services performed by GARCIA as the Interim City Manager under this Agreement, CITY shall pay GARCIA compensation at the rate One Hundred Eleven Dollars and Seventy-Six Cents ($111.76) per hour according to the payroll schedule in place for CITY employees subject to the limitations provided below. 2.2 Compliance with CalPERS Requirements. It is the intent of the parties to compensate GARCIA only to the extent permitted under Government Code §§ 21221(h) and 7522.56(d) and corresponding CalPERS regulations and policy statements. The parties acknowledge and agree that the rate of pay set forth above does not exceed the salary limitations established by CalPERS based on the salary as set forth in the CITY’s publicly available salary schedule. The Rate of Pay set forth above is based on 11

RIV #4877-2593-9720 v2 4 the salary limitations established by CalPERS. The annual base salary for the position of City Manager as listed on a publicly available pay schedule is Two Hundred Thirty-Two Thousand Four Hundred Seventy Dollars ($232,470.00). The Rate of Pay is calculated by taking the monthly base salary of Nineteen Thousand Three Hundred Seventy-Two Dollars and Fifty Cents ($19,372.50) and dividing it by 173.333 to equal an hourly rate of One Hundred Eleven Dollars and Seventy-Six Cents ($111.76). 2.2.1 Recording and Reporting of Hours Worked. GARCIA will comply with all applicable CalPERS regulations governing employment after retirement including recording and reporting to CITY all hours worked for CITY. CITY shall be responsible for all reporting obligations to CalPERS of GARCIA’S hours worked. Additionally, GARCIA shall keep CITY continually apprised of any hours worked by GARCIA for other CalPERS Agencies during the term of this Agreement. 2.3 Benefits. 2.3.1 No Benefits. GARCIA shall not receive from CITY any benefits CITY commonly provides to its employees including, without limitation, health, dental, or vision insurance coverage, life insurance, employee assistance programs, and similar benefits. The CITY will make no contribution on behalf of GARCIA to any tax-deferred retirement plans. 3. Vacation and Leave. 3.1 No Leave. GARCIA and CITY agree that GARCIA shall not be provided or accrue any personal time off, vacation, sick leave, administrative leave, paid holidays or similar leave benefits. 4. Termination. 4.1 By CITY. This Agreement may be terminated by CITY for any reason. CITY’s only obligation in the event of such termination will be payment to GARCIA of all compensation then due and owing as set forth in Section 2.1 [Rate of Pay] up to and including the effective date of termination. However, this Agreement may be terminated immediately if necessitated by changes to CalPERS statutory or regulatory requirements. 4.2 By GARCIA. This Agreement may be terminated by GARCIA for any reason thirty (30) days after notice in writing to CITY of