Staff Report with attachments
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
ATTACHMENT 1
SEVENTH AMENDMENT TO THE TOWN MANAGER EMPLOYMENT AGREEMENT
This Amendment to Town Agreement AGR 15-172 is entered into this 6th day of December, 2022, by and between the Town of Los Gatos, a municipal corporation (“TOWN”), and Laurel Prevetti (“EMPLOYEE”).
RECITALS
WHEREAS, Town and Laurel Prevetti executed an Agreement effective September 2, 2015 to provide Town Manager services to the Town;
WHEREAS, a First Amendment to the Agreement was executed on April 4, 2017 to
amend the employment agreement to award a 4.43% wage increase to the annual base salary, effective on April 4, 2017 and a lump sum performance bonus of $3,000; and WHEREAS, a Second Amendment to the Agreement was executed on January 16, 2018
to amend the employment agreement to award a $8,000 wage increase to the annual base salary,
effective on January 16, 2018; and WHEREAS, a Third Amendment to the Agreement was executed on December 18, 2018, to amend the employment agreement to award a $16,250 wage increase to the annual base salary,
effective on September 2, 2018 and a lump sum performance bonus of $3,300; and WHEREAS, a Fourth Amendment to the Agreement was executed on December 3, 2019 to amend the employment agreement to award a $13,750 wage increase to the annual base salary, effective on September 2, 2019 and a lump sum performance bonus of $5,000; and
WHEREAS, a Fifth Amendment to the Agreement was executed on November 3, 2020 to amend the employment agreement to award a $12,500 wage increase to the annual base salary, effective on September 2, 2020 and a lump sum performance bonus of $5,000; and WHEREAS, a Sixth Amendment to the Agreement was executed on November 16, 2021 to amend the employment agreement to award a $5,250 wage increase to the annual base salary, effective on September 2, 2021; and
WHEREAS, on the basis of the annual evaluation, the Town Council desires to amend the
employment agreement to award a $8,033 wage increase (3%) to the annual base salary, retroactive to the anniversary date of September 2, 2022 and a lump sum pandemic-related bonus of $2,500; and
IT IS THEREFORE AGREED by the parties as follows:
Section 2 of the Agreement is amended to read as follows: A. Salary.
The Town Manager is awarded a $8,033 wage increase for a total annual
base salary of $275,783, effective September 2, 2022 and a one-time panedmic-related bonus lum sum payment in the amount of $2,500.00.
ATTACHMENT 1
Section 3 of the Agreement is amended to read as follows: Benefits. The Town Manager will also have the new Juneteenth holiday.
IN WITNESS WHEREOF, the parties have executed this Amendment to the Town Manager Agreement on the date written above.
TOWN OF LOS GATOS
________________________________ Rob Rennie, Mayor
____________________________ Laurel Prevetti , Town Manager ATTEST:
_______________________________ Wendy Wood, Town Clerk
APPROVED AS TO FORM: ______________________________
Gabrielle Whelan, Town Attorney
2 of 2 Seventh Amendment to the Town Manager Employment Agreement
ATTACHMENT 2
This Page Intentionally Left Blank
Town of Los Gatos Town Council and Management Classifications
Salary Schedule for Fiscal Year 2022/23
Class
Code Classification Title Annual Salary
Minimum
Annual
Salary
Maximum
2615 Assistant Parks & Public Works Director/Town Engineer 146,041$ 197,155$
2110 Assistant Town Manager 173,596$ 234,355$
2420 Chief Building Official 132,307$ 178,614$
2400 Community Development Director 169,358$ 228,633$
2180 Community Outreach Coordinator 91,353$ 123,326$
2130 Economic Vitality Manager 125,930$ 170,005$
2315 Finance and Accounting Manager 132,307$ 178,614$
2310 Finance and Budget Manager 132,307$ 178,614$
2300 Finance Director 165,232$ 223,063$
2200 Human Resources Director 153,434$ 207,136$
2900 Information Technology Manager 132,307$ 178,614$
2800 Library Director 153,434$ 207,136$
2820 Library Division Manager 100,836$ 136,129$
2600 Parks & Public Works Director 169,358$ 228,633$
2645 Parks & Public Works Operations Manager 114,087$ 154,017$
2630 Parks & Public Works Superintendent 132,307$ 178,614$
2412 Planning Manager 132,307$ 178,614$
2510 Police Captain 157,270$ 212,314$
2500 Police Chief 177,936$ 240,213$
2545 Police Records & Communication Manager 122,858$ 165,859$
2140 Senior Administrative Analyst 98,376$ 132,808$
2650 Senior Civil Engineer 125,930$ 170,005$
2000 Town Attorney - Council Appointed (Effective 11/15/22) 253,649$
2190 Town Clerk 132,307$ 178,614$
2100 Town Manager - Council Appointed (Effective 09/02/22) 275,783$
2655 Transportation & Mobility Manager 122,858$ 165,859$
2905 Urban Forest Manager 114,087$ 154,017$
1000
Town Council (Effective 1/1/19 Pursuant to Ordinance Adopted
by Town Council on 2/6/18)
Management salaries reflect a spread of 35% to the top of the range.
Reflects a General Increase of 3%
$570 Stipend per month,
for a total compensation of
$6,840 per year
ATTACHMENT 3