Item Coversheet
CITY OF CARMEL-BY-THE-SEA
CITY COUNCIL
Staff Report 

June  2, 2020
ORDERS OF BUSINESS

TO:

Honorable Mayor and City Council Members 
SUBMITTED BY:

Maxine Gullo, Ass't. City Administrator
APPROVED BY: 

Chip Rerig, City Administrator
SUBJECT:

Resolution 2020-034 authorizing the Mayor to execute a third amendment to the City Administrator At-Will Employment Agreement effective June 1, 2020

 
RECOMMENDATION:

Adopt Resolution 2020-034 authorizing the Mayor to execute a third amendment to the City Administrator At-Will Employment Agreement effective June 1, 2020. 

BACKGROUND/SUMMARY:

On February 2, 2016, the City entered into an Employment Agreement with Chip Rerig, to serve as the City Administrator.  The current base salary of Mr. Rerig is $196,650 pursuant to the Second Amendment to the Employment Agreement.

 

In March, 2020, the City of Carmel-by-the-Sea, began grappling with the impacts of COVID-19, a deadly flu-like virus.  The economic impacts of COVID-19 have caused a significant financial negative  impact upon the City’s budget.

 

In an effort to contribute to the City’s necessary attempts to cut costs, City Administrator Rerig has requested that an amount equal to 10% (ten percent)  of his annual base salary for 12 (twelve) months commencing June 1, 2020 through May 31, 2021 be reduced from the City’s contribution to his Section 457 deferred compensation program.  The annual base salary of the City Administrator is $196,650 and 10% (ten percent) thereof is $19,665.00.  The proposed Third Amendment to the Employment Agreement with the City Administrator reflects this reduction in the Section 457 deferred compensation program contribution and the resulting savings to the City of $19,665.00 

 

FISCAL IMPACT:

There will be a savings to the City of $19,665.00.  IMPACT

PRIOR CITY COUNCIL ACTION:

Resolution No. 2016-012:  Resolution authorizing the Mayor to execute an Employment Agreement between the City and Chip Rerig.

 

Resolution No. 2017-088:  Resolution approving a First Amendment to the City Administrator Employment Agreement. 

 

Resolution No. 2018-110:  Resolution authorizing the Mayor to execute a Second Amendment to the City Administrator Employment Agreement. 

ATTACHMENTS:
ATTACHMENTS:
Description
Attachment #1 - Resolution 2020-034 Third Amendment to City Administrator Employment Agreement
Attachment #2 - Third Amendment to City Administrator Employment Agreement