AGENDA TITLE:
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Adopt a Resolution Authorizing the City Manager to Execute an Addendum #2 to the Employment Agreement with Luis Aguilar, Economic Development Director, Including a Five Percent (5%) Equity Adjustment to Bring the Economic Development Director’s Base Salary to $198,198 Annually, effective January 5, 2026, Future Cost of Living Increases, Elimination of CalPERS Cost-Sharing, and Modification to the City’s Contribution to Medical Premiums (CM)
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MEETING DATE:
February 18, 2026
PREPARED BY:
James Lindsay, Interim City Manager
recommendation
RECOMMENDED ACTION:
Adopt a Resolution Authorizing the City Manager to Execute an Addendum #2 to the Employment Agreement with Luis Aguilar, Economic Development Director, Including a Five Percent (5%) Equity Adjustment to Bring the Economic Development Director’s Base Salary to $198,198 Annually, effective January 5, 2026, Future Cost of Living Increases, Elimination of CalPERS Cost-Sharing, and Modification to the City’s Contribution to Medical Premiums.
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BACKGROUND INFORMATION:
The City of Lodi has negotiated successor Memorandums of Understanding (“MOUs”) with several of the represented bargaining units that include equity adjustments, cost-of-living adjustments, elimination of the CalPERS cost-sharing contributions, and increased City contribution towards medical premiums.
The City Manager has completed negotiations with the Economic Development Director and have negotiated amendments to the Economic Development Director’s employment agreement, similar to those provided to other represented employees, as follows:
• A five percent (5%) equity adjustment, retro-active to January 5, 2026;
• A two-point five percent (2.5%) equity adjustment, effective the first full pay-period in January 2027;
• Three percent (3%) cost-of-living increase effective the first full pay-period in January 2027;
• Three percent (3%) cost-of-living increase effective the first full pay-period in January 2028;
• City shall pay up to 90% of the medical premium, by enrollment category, for the lowest cost HMO plan available in the zip code 95240, effective January 1, 2026;
• Reduce total employee pension contribution by eliminating employee cost-sharing of six percent (6%), effective July 6, 2026:
o Classic Contribution seven percent (7%)
o PEPRA Contribution of 50% of normal cost
• City agrees to maintain a minimum ten percent (10%) salary differential between Employee and the Economic Development Department’s next highest paid executive or mid manager, including incentive pay.
• If assigned by the City Manager to a vacant or interim Director position, for more than two consecutive weeks, Employee shall receive the current salary of the position they are filling while in this status, or a 10% upgrade, whichever is greater.
The current salary for the Economic Development Director is $188,760 annually. The agreed upon equity adjustment of five percent (5%), retro-active to January 5, 2026 will bring the Economic Development Director’s annual salary to $198,198.
FISCAL IMPACT:
The recommended salary adjustment will result in an approximate increase of $9,438 annually. Sufficient funds will be allocated within the next fiscal year’s budget for this adjustment.
FUNDING AVAILABLE:
10010000.71001