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SR - AGR-6198.A.1 - EXTENSION OF EMPLOYMENT AGREEMENT WITH CITY MANAGER THROUGH SEPTEMBER 30 20191. SUBJECT Extension of Employment Agreement with City Manager Richard Otto. 2. SUMMARY The proposed agreement with City Manager Richard Otto provides for a one year extension to his current three year term which commenced on October 4, 2015, this contract now expires on September 30, 2019. Orange Municipal Code Section 2.16.080 provides that the City Manager shall receive such compensation as determined by the City Council. 3. RECOMMENDED ACTION /MOTION Approve Extension of Employment Agreement with City Manager Richard Otto. 14. FISCAL IMPACT No additional impact as the agreement provides for the City Manager's compensation to remain at $18,092.00 per month. 5. STRATEGIC PLAN 1. Be a fiscally healthy community Strategies: b) Expend fiscal resources responsibly. 1 6. GENERAL PLAN IMPLEMENTATION Not Applicable. 7. DISCUSSION and BACKGROUND Richard Otto was appointed City Manager on October 4, 2015 with the City Council and Mr. Otto agreeing to a three year contract that was set to expire on September 30, 2018. The City Council has conducted yearly reviews of the City Manager's performance and has decided that it desires to extend the length of this current agreement by one year so that it will now expire on September 30, 2019. All other terms including salary will remain the same. 8. ATTACHMENTS Employment Agreement. ITEM # 2 11/14/17