09 Staff Report.Amendment to Town Manager Agreement
PREPARED BY: Katy Nomura
Assistant Town Manager
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: 12/05/2023 ITEM NO: 9
DATE: November 28, 2023
TO: Mayor and Town Council
FROM: Katy Nomura, Assistant Town Manager/Acting Human Resources Director
SUBJECT: Approve an Amendment to the Employment Agreement Between the Town
of Los Gatos and the Town Manager and Authorize Salary and Benefits
Budget Adjustments in the Amount of $15,682 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 and authorize salary and benefits budget adjustments in the
amount of $15,682 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. 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 and Authorize Salary and Benefits Budget Adjustments in the Amount of $15,682 from Available General Fund Capital/Special Projects Reserve DATE: November 28, 2022
DISCUSSION (continued):
In accordance with the agreement terms for Town Manager Laurel Prevetti, the Town Council
completed the evaluation for her eighth year in the position, from October 2022 through
September 2023.
Based upon the completion of the performance review in Closed Session, Council
recommended that the Town Manager’s annual base salary increase five percent (5%) to
$289,572 annually, retroactive to the anniversary date of September 2, 2023.
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 five percent (5%) to
$289,572 annually, effective on September 2, 2023. If Council approves the contract
amendment and budget adjustment, the Council’s action will be reflected in an updated Salary
Schedule for Management (see Attachment 3).
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 $15,682. The requested budget
adjustment in the amount of $15,682 from available General Fund Capital/Special Project
Reserve will provide funding for the additional salary and benefit cost for Fiscal Year (FY)
2023/24. Funding to support the FY 2024/25 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 Town Manager Employment Agreement
2. Town Manager Employment Agreement
3. Town Council and Management Salary Schedule