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ORIGINAL <br />FIFTH AMENDMENT TO CITY MANAGER EMPLOYMENT AGREEMENT <br />This FIFTH AMENDMENT to the EMPLOYMENT AGREEMENT dated August 24, <br />2015 between the City of Redwood City, a Charter City and Municipal Corporation of the <br />State of California ("City"), and Melissa Stevenson Diaz ("Employee") is entered into as of the lst <br />day of July, 2021. <br />WHEREAS, in conformance with its performance review and compensation program for <br />its appointees, the City Council has evaluated salary survey data of comparable positions in <br />benchmark cities, and wishes to adjust Employee's salary and benefits accordingly as well as <br />acknowledge Employee's performance. <br />WHEREAS, it is now the mutual desire and intent of the parties to amend the Agreement <br />to increase Employee's annual salary to $334,250. <br />NOW THEREFORE, in consideration of the mutual covenants contained in the original <br />Agreement and as provided herein, the Agreement is AMENDED to read as follows: <br />1. Section 3 of the Agreement, entitled "Compensation & Benefits," is hereby deleted <br />and replaced with Section 3 below. <br />3. COMPENSATION & BENEFITS <br />A. Employee shall be paid three hundred thirty-four thousand two hundred <br />fifty dollars ($334,250) per year effective the first full pay period on or <br />after July 1, 2021, payable in installments at the same time other City <br />executive management employees are paid. Hereafter, Employee shall <br />receive the compensation adjustments (cost of living [COLA], lump <br />sum payments, one-time leave hours) approved by the City Council in <br />the same amount and at the same time as they are approved for <br />unrepresented department heads, except for any COLA approved in <br />2021 for unrepresented department heads. <br />B. Within the next two years, Employee's base salary shall be adjusted to <br />an amount that provides for a minimum ten percent (10%) differential <br />above the top of the range of the highest paid department head directly <br />supervised by Employee; and thereafter, a minimum ten percent (10%) <br />base salary differential shall be maintained for Employee above the top <br />of the range of the highest paid department head directly supervised by <br />Employee. <br />C. The City Council shall conduct an annual evaluation each year and may <br />also conduct quarterly evaluations. The evaluation process shall address <br />goals and objectives set for the past twelve-month period and establish <br />goals and objectives for the upcoming 12 -month period. The City <br />Council shall provide Employee with its written comments, if any, <br />ATTY/AGR/EMPLOYMENT AGREEMENTS/FIFTH AMENDMENT CITY MANAGER — DIAZ <br />REV: 11-28-2021 RL <br />Page 1 of 3 <br />