That the City Council:
A. Approve and authorize the execution of an amended and restated employment agreement for the office of City Manager with Mr. Jim Sadro, which will remain in effect unless amended or terminated by mutual agreement of both parties; and

B. APPROVE AND ADOPT RESOLUTION NO. CC 2025-__ ENTITLED: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA HABRA, CALIFORNIA, AMENDING RESOLUTION NO. 2024-13 PERTAINING TO A COMPENSATION PLAN FOR EXECUTIVE MANAGEMENT EMPLOYEES.

Mr. Sadro has been employed by the City since 2004, having held the positions of Finance Director, Director of Finance and Administrative Services, Assistant City Manager, and his current position of City Manager since 2014. The City Council met in Closed Session to review Mr. Sadro’s performance and directed staff to prepare changes to Mr. Sadro's current employment agreement, which was entered on August 16, 2021. As directed, the City Attorney presented the City Council’s terms and conditions for an amended and restated agreement to Mr. Sadro, and he accepted. 

The proposed amended and restated at-will employment agreement, if approved by City Council, will take effect on July 1, 2025, and will increase the City Manager's current $292,110 annual salary to $303,872, effective July 12, 2025. The agreement also provides for an increase in sick leave hours, a contribution to the employee's Retiree Health Savings account should the employee retire from the City and, in lieu of any annual CPI or COLA adjustments to base pay that may be approved by City Council and provided to Executive Management staff, the employee will instead receive an equal one-time only payment.

If approved by City Council, the proposed amended and restated employment agreement will increase the City’s annual cost by $14,096 in base salary and associated fringe benefits. There is sufficient available funding in the Fiscal Year 2025-2026 proposed budget to accommodate this increase.