Staff Report.Amendment to Town Manager Agreement
PREPARED BY: Salina Flores
Human Resources Director
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, and Finance Director
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 12/06/2022 ITEM NO: 9
DATE: November 3, 2022
TO: Mayor and Town Council
FROM: Salina Flores, Human Resources Director
SUBJECT: Approve an Amendment to the Employment Agreement Between the Town
of Los Gatos and the Town Manager Effective on the Anniversary Date and
Authorize Salary and Benefits Budget Adjustments in the Amount of $11,626
from Available General Fund Capital/Special Projects Reserve.
RECOMMENDATION:
Approve an amendment to the employment agreement (Attachment 1) between the Town of
Los Gatos and the Town Manager effective on the anniversary date and authorize salary and
benefits budget adjustments in the amount of $11,626 from available General Fund
Capital/Special Projects Reserve.
BACKGROUND:
As an appointee of the Town Council, the Town Manager is employed under an Employment
Agreement (Attachment 2) specifying the terms and conditions of employment. The terms and
conditions of employment include items such as base pay, basic and optional benefits, covered
expenses, parameters for an annual performance review, and conditions for
termination/severability. Senate Bill 1436 requires an oral summary at a Council meeting when
a recommendation is made related to modifying the salary, salary schedule, or fringe benefits
of any person employed under an Employment Agreement with a local agency.
DISCUSSION:
As outlined in the Employment Agreement, the Town Manager’s performance and
compensation is reviewed annually in conjunction with a performance evaluation. The review
of the Employment Agreement is conducted to ensure legal compliance and to provide for any
adjustments in the terms and conditions of employment.
PAGE 2 OF 2 SUBJECT: Approve an Amendment to the Employment Agreement Between the Town of Los Gatos and the Town Manager Effective on the Anniversary Date, and Authorize Salary and Benefits Budget Adjustments in the Amount of $11,626 from Available General Fund Capital/Special Projects Reserve DATE: November 3, 2022
DISCUSSION (continued):
In accordance with the agreement terms for Town Manager Laurel Prevetti, the Town Council
completed the evaluation for her seventh year in the position, from October 2021 through
September 2022.
Based upon the satisfactory completion of the performance review in Closed Session, Council
recommended that the Town Manager’s annual base salary increase three percent (3%) to
$275,783 annually, retroactive to the anniversary date of September 2, 2022.
The Employment Agreement also provides authorization for the Town Manager to receive the
same benefits as Town Unrepresented Management employees. Unrepresented Management
employees who worked for the Town in 2021, received a one-time pandemic related bonus
lump sum payment in the amount of $2,500. The amendment includes this same one-time
pandemic related bonus lump sum payment in the amount $2,500. The Town Manager would
also have the new Council adopted Juneteenth holiday.
CONCLUSION:
Based upon the satisfactory completion of the performance review in Closed Session, it is
recommended that the Town Manager’s annual base salary increase three percent (3%) to
$275,783 annually, effective in the pay period that includes September 2, 2022.
FISCAL IMPACT:
Funding to support the Town Manager’s salary and benefits is authorized in the annual budget
each fiscal year along with all other Town employee compensation and benefits. The
anticipated fiscal impact for the remainder of the fiscal year is $11,626. The requested budget
adjustment in the amount of $11,626 from available General Fund Capital/Special Project
Reserve will provide funding for the additional salary and benefit cost for Fiscal Year (FY)
2022/23. Funding to support the FY 2023/24 ongoing cost each year will be incorporated into
the proposed future year budgets for Council approval.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
Attachments:
1. Amendment to the Employment Agreement – Town Manager
2. Employment Agreement – Town Manager
3. Salary Schedule for Town Council and Management