Rancho Palos Verdes City Council



DATE: MAY 18, 2004



Approve the Fifth Amendment to the City Manager’s Employment Agreement.


At the last City Council meeting, the City Council conducted the annual performance evaluation of the City Manager. Based on the review that the City Manger received, the City Council unanimously directed the City Attorney to prepare a Fifth Amendment to the City Manager’s Employment Agreement. That amendment has been prepared and is attached to this report.


The Fifth Amendment to the City Manager’s employment agreement makes the following changes to the City Manager’s current agreement with the City:

    1. The term of the agreement, which is set forth in Section 2 of the Agreement, is extended by one year, from July 1, 2004, to June 30, 2005.
    2. Other provisions of the Agreement have been revised to reflect the new term of the Agreement.
    3. The City Manager’s salary has been increased by $7,350 per year, which is comparable to the salary that is being paid to managers of other cities of comparable size in the South Bay.
    4. The City Manager’s Auto Allowance has been reduced by $2,000 per year.


Except as expressly set forth in the amendment to the agreement, all of the other provisions of the City Manager’s Employment Agreement have not been altered and remain in effect.


The attached amendment to the City Manager’s Employment Agreement includes all of the directions that were given by the City Council. Accordingly, it is recommended that the City Council approve the Fifth Amendment to the City Manager’s Employment Agreement.


Respectfully submitted,


Carol W. Lynch

City Attorney



City Manager’s Employment Agreement



This agreement is the fifth amendment to the Employment Agreement (hereinafter referred to as "the Agreement") between the City of Rancho Palos Verdes (hereinafter referred to as "City") and Lester G. Evans, Jr., (hereinafter referred to as "Employee"). This Fifth Amendment to Employment Agreement is made and entered into as of May 18, 2004.

WHEREAS, pursuant to Section 7 of the Agreement, the City Council of City conducted an annual review Employee’s performance at a closed session held at a regular City Council meeting on May 4, 2004; and

WHEREAS, the City Council finds, that based on the review of Employee’s performance, the City Council desires to continue to employ Employee as the City Manager and to increase Employee’s annual salary;

NOW, THEREFORE, the parties hereto agree that:

Section 1. Section 2 of the Agreement is hereby amended to read as follows:


"A. The term of this Agreement shall be from July 1, 2004, until June 30, 2005, and shall automatically renew from year to year thereafter, unless either party gives written notice to the other party not later than the first day of January immediately prior to the end of each contract year of a desire to amend, modify or terminate this Agreement. If either party does not give such notice, then the term of this Agreement shall be extended on the same terms and conditions as are herein provided for an additional period of one (1) year from the first day of July following said January 1st. This paragraph shall not be construed as preventing the parties from amending or modifying the Agreement by a written instrument executed by both of the parties. The question of extension or non-extension of the term hereof shall be considered by the COUNCIL at the time of the annual evaluation of EMPLOYEE as provided in Section 7 hereof.

"B. Nothing in this Agreement shall prevent, limit or otherwise interfere with the right of the COUNCIL to terminate the services of EMPLOYEE at any time upon ninety (90) days advance written notice, subject only to the provisions set forth in Section 4, paragraphs A and B of this Agreement.

"C. In accordance with Section 2.08.020 of the Rancho Palos Verdes Municipal Code, EMPLOYER hereby approves EMPLOYEE’S residence outside of the City during the term of this Agreement.

"D. EMPLOYEE agrees to remain in the exclusive employment of EMPLOYER until June 30, 2005, and neither to accept other employment nor to become employed by any other employer while employed by EMPLOYER. The prohibition against other employment shall not be construed to prevent occasional teaching, writing, or consulting performed on Employee’s time off in accordance with Section 8 of this Agreement.

SECTION 2. Paragraph C of Section 4 of the Agreement is hereby amended by changing the dates referred to therein from June 30, 2004 to June 30, 2005.

SECTION 3. Section 6 of the Agreement is hereby amended to read as follows:


"A. EMPLOYER agrees to pay EMPLOYEE for his services rendered pursuant hereto, an annual salary of $144,500.00. EMPLOYEE’S salary shall be paid in installments at the same time as other employees of EMPLOYER are paid.

"B. In recognition of accomplishments and excellent performance, merit increases may be granted to EMPLOYEE by COUNCIL. EMPLOYER agrees that EMPLOYEE’S salary shall be reviewed annually at the same time that EMPLOYEE’S performance is reviewed pursuant to Section 7."

SECTION 4. Section 9 of the Agreement is hereby amended to read as follows:


"EMPLOYEE shall provide and have at his disposal for use for City business a clean, presentable and well maintained automobile. EMPLOYEE shall be responsible for all costs of maintenance and operation of said vehicle. During the term of this Agreement, EMPLOYEE shall secure and maintain, at EMPLOYEE’S expense, automobile insurance in accordance with the requirements of Rancho Palos Verdes Administrative Instruction No. 8-02, and the minimum insurance requirements established by State law, whichever is greater, and shall provide satisfactory evidence of such automobile insurance to EMPLOYER. EMPLOYER shall pay to EMPLOYEE the amount of $333.00 per month to compensate EMPLOYEE for the use of EMPLOYEE’S automobile for City business."

SECTION 5. Except as expressly amended by this Fifth Amendment to Employment Agreement, all of the provisions of the Agreement, as previously amended, shall remain in full force and effect.

IN WITNESS WHEREOF, the City Council of the City of Rancho Palos Verdes, California, has caused this Fifth Amendment to Employment Agreement to be signed and executed on its behalf by its Mayor, and duly attested by its City Clerk, and EMPLOYEE has signed and executed this Fifth Amendment to Employment Agreement, as of the date and year first above written.

Dated: _____________________ EMPLOYER






[Signatures continue]

Dated: _____________________ EMPLOYEE