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ITEM NO. 6
Canyon Lake CA logo CITY COUNCIL STAFF REPORT                   
 		  
 
TO:
 		   Honorable Mayor and Members of the City Council
 
FROM:
 		   Arron Brown, City Manager
 
BY:
 		   Steven Graham, City Attorney
 
DATE:
 		   01/14/2026
 
SUBJECT:  
Approval of a First Amendment to the Amended and Restated City Manager Employment Agreement with Arron Brown
     

Recommendation:

(1) Approve the First Amendment to the Amended and Restated City Manager Employment Agreement with Arron Brown; and (2) authorize the Mayor to execute the Amendment on behalf of the City.

Background/Analysis:

The City of Canyon Lake and Arron Brown ("City Manager") entered into an Amended and Restated Employment Agreement effective November 13, 2024. Section 8 of the existing Agreement provides for deferred compensation through a City matching contribution into a 401(a) account, with a total annual City contribution cap of $25,000. The proposed First Amendment modifies Section 8 to restructure this benefit into a guaranteed annual lump-sum contribution. Under the new terms, the City will contribute $25,000 into the City Manager's 401(a) account during the first pay period of each calendar year.
 

Key Provisions of the Amendment:

  • Simplified Administration: The City’s contribution is no longer contingent upon a personal contribution by the City Manager that must be tracked by the City each pay period. The benefit is now resolved in a single pay period per calendar year.
  • Market Growth Opportunity: Payments will be made in a single lump sum during the first pay period of the calendar year rather than being distributed incrementally throughout the year. This allows the funds more time for potential market growth.

All other terms and conditions of the November 13, 2024, Agreement remain in full force and effect.

Fiscal Impact Yes/No:
No

Additional Fiscal Information:

The First Amendment does not increase the City’s maximum annual liability for deferred compensation, which remains $25,000 per year. The timing of the expenditure will shift from periodic payments throughout the year to a single lump-sum payment at the start of each calendar year. There are sufficient funds available in the adopted Fiscal Year 2025-26 Budget to accommodate the 2026 contribution.

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