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Staff Report PREPARED BY: LISA VELASCO Human Resources Director Reviewed by: Town Manager 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: 02/07/2017 ITEM NO: 9 DATE: JANUARY 25, 2017 TO: MAYOR AND TOWN COUNCIL FROM: LAUREL PREVETTI, TOWN MANAGER SUBJECT: APPROVE AN AMENDMENT TO THE EMPLOYMENT AGREEMENT BETWEEN THE TOWN OF LOS GATOS AND THE TOWN ATTORNEY RECOMMENDATION: Approve an amendment to the Employment Agreement (Attachment 1) between the Town of Los Gatos and the Town Attorney. BACKGROUND: As an appointee of the Town Council, the Town Attorney is employed under an Employment Agreement 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 annual performance review, and conditions for term ination/severability. Senate Bill 1436, effective January 1, 2017, requires an oral summary of a recommendation related to modifying the salary, salary schedule, or fringe benefits of any person employed under an Employment Agreement with a local agency. DISCUSSION: The Town Attorney’s Employment Agreement is reviewed on an annual basis in conjunction with an annual performance evaluation. The review of the Employment Agreement is conducted to ensure legal compliance and to provide for any adjustments i n 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 ATTORNEY DATE: FEBRUARY 7, 2017 S:\COUNCIL REPORTS\2017\02-07-17\Employment Agreement TA\Town Attorney Agreement Staff Report FINAL.docx 2/2/2017 9:16 AM LV DISCUSSION (cont’d): The original Employment Agreement for the appointment of Town Attorney Robert Schultz was approved by the Town Council effective December 12, 2013. In accordance with the contract terms, the Town Council has completed the evaluation process for the Town Attorney for his third year in the position, from December 2015 to December 2016. CONCLUSION: Based upon the satisfactory completion of the Town Attorney’s performance review in closed session, it is recommended that the Town Attorney be awarded a 2.5% wage increase to the annual base salary on his three-year anniversary date. The wage increase is consistent with adjustments provided to other Town management salaries in July 2016. In addition, the Town Attorney’s current salary is well below other Bay Area City Attorneys and it is recommended that the Town Attorney receive a one-time lump sum performance bonus of $2,500. Council also agreed to transfer the car allowance amount of $350 per month into the Town Attorney’s base salary. FISCAL IMPACT: Funding to support the Town Attorney’s Employment Agreement is authorized in the annual budget each fiscal year along with all other Town employee compensation and benefits. The additional fiscal impact for the remainder of 2016/2017 is $5,407. The total salary and benefits cost for a full year is approximately $282,439. The increased base salary will be included in the base bu dget for future fiscal years. The total cost impact will be absorbed in the Town’s existing operating budget. Attachments: 1. Amendment to the Agreement for Employment – Town Attorney