For City Council Meeting August 26, 2025
TO: Honorable Mayor and City Council
FROM: Eric S. Vail, City Attorney
Title
Request City Council to Consider Approval of Amendment No. 1 to the Employment Agreement between the City of Rialto and City Manager.
Body
RECOMMENDATION:
It is recommended that the City Council approve Amendment No. 1 to the employment agreement between the City of Rialto and the City Manager.
BACKGROUND
On February 11, 2025, the City entered into an Employment Agreement with Tanya Williams to serve as City Manager. The Agreement specifies that most benefits provided to the City Manager will align with those offered to members of the City’s Executive Management Team, as outlined in Article IV of the Executive Management Benefits Profile.
Section 4.3 of the City Manager’s Agreement currently states:
“Williams will have access to the 401A, Money Purchase Pension Plan and Trust, subject to City Council modification of the plan as authorized by federal and state laws. Once Williams has completed three full and continuous years of employment with the City as its City Manager, the City shall contribute seven hundred fifty dollars ($750) per month towards Williams’s deferred compensation plan.”
It is now proposed that the City Council consider amending section 4.3 to remove the three-year eligibility requirement, to allow Williams access to the 401A plan, and for the City to make contributions on her behalf to the 401A plan, and that those contributions will be $960 per month. If approved, Section 4.3 of the Agreement would be amended to read as follows:
“Effective the 26th of August 2025, WILLIAMS will have access to the 401A, Money Purchase Pension Plan and Trust, subject to City Council modification of the plan as authorized by federal and state laws. City shall contribute nine hundred sixty dollars ($960) per month towards Williams’s deferred compensation plan.”
ANALYSIS/DISCUSSION
The proposed amendment will align the City Manager’s deferred compensation benefits with those outlined in the Executive Management Benefits Profile and ensure consistency with the Executive Management Benefits Profile. This change affords the City Manager the same access to deferred compensation benefits as other members of the Executive Management Team. Toward that end, the amendment increases the City’s monthly contribution from seven hundred fifty dollars ($750) to nine hundred sixty dollars ($960), which is the newly established benefit in the Executive Management Benefits Profile.
The proposed First Amendment to the City Manager’s Employment Agreement is attached for City Council consideration.
Adopting the proposed amendment advances several objectives. First, it ensures contractual consistency between the City Manager’s Employment Agreement and the City’s Executive Management Benefits Profile, thereby reducing the risk of ambiguity or misinterpretation. Second, it reinforces equity among executive-level employees by extending the same deferred compensation benefits to the City Manager that are provided to her peers. Finally, aligning the agreement with established benefits strengthens transparency in compensation practices and supports the City’s ability to attract and retain highly qualified executive leadership.
For these reasons, staff recommends approval of the First Amendment to the City Manager’s Employment Agreement as presented.
ENVIRONMENTAL IMPACT
This request is not a Project as defined by Section 15378 of the California Environmental Quality Act (CEQA) Guidelines. A “Project” means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. Pursuant to Section 15378 (b) (5), a project does not include organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.
GENERAL PLAN CONSISTENCY
This action is consistent with Guiding Principle 3A in the General Plan:
“Our City government will lead by example, and will operate in an open, transparent, and responsible manner that meets the needs of the citizens and is a good place to do business.”
LEGAL REVIEW:
The City Attorney has reviewed and recommends approval of the staff report and Resolution.
FINANCIAL IMPACT:
Operating Budget Impact
The proposed First Amendment allows immediate access to the 401A plan and requires the City to make contributions of $960 per month, where it was not making any contributions previously. This represents an increase of $11,520 per year.
Funds to cover the increased contribution are available within the fiscal year budget and no additional appropriation is required at this time.
Capital Budget Impact:
This action has no impact on the Capital Budget.