08 Staff Report - Amendment Between Town of Los Gatos and Town Attorney~pW N 0
COUNCIL AGENDA REPORT
!ps GATES
DATE: January 11, 2007
MEETING DATE: 1/16/2007
ITEM NO.
TO: MAYOR AND TOWN COUNCIL f' k,~
FROM: RUMI PORTILLO, HUMAN RESOURCES DIRECTO
SUBJECT: ADOPT RESOLUTION AMENDING THE AGREEMENT BETWEEN THE
TOWN OF LOS GATOS AND THE TOWN ATTORNEY AND AUTHORIZING
THE MAYOR TO SIGN AMENDMENT ON BEHALF OF TOWN OF LOS
GATOS
RECOMMENDATION:
Adopt resolution of the Town Council of the Town of Los Gatos amending agreement between the
Town of Los Gatos and the Town Attorney and authorizing the Mayor to sign amendment on behalf of
Town of Los Gatos.
DISCUSSION:
The Town Council approved an agreement with the Town Attorney on April 7, 1997, which provides for
an annual performance evaluation and possible salary adjustments. A review of the Town Attorney's
performance has been completed and the following salary adjustments are deemed appropriate:
• The annual base salary shall be increased by 5%, from $158,235 to $166,147, retroactive to June 18,
2006; and
• A performance bonus of $3,500 is awarded, payable as a lump sum in cash or as a deposit to the
employee deferred compensation account.
A recent audit conducted by the Public Employees Retirement System ("PERS") recommended that the
Town Attorney's contract specify that any bonus or incentive award be paid for superior performance in
accordance with a structured evaluation plan with identified performance goals and objectives. That
would ensure that a bonus awarded to the Town Attorney be treated for retirement purposes consistent
PREPARED BY: RUMI PORTILLO
Human Resources Director
RP:pg
N:AN1GR\AdminWorkFi1es\2007 Council Reports\TA Employment Contract Council Report.doe
Reviewed by: Assistant Town Manager Town Attorney
Clerk Administrator _ ` Finance Community Development
PAGE 2
MAYOR AND TOWN COUNCIL
SUBJECT: ADOPT RESOLUTION AMENDING THE AGREEMENT BETWEEN THE
TOWN OF LOS GATOS AND THE TOWN ATTORNEY AND
AUTHORIZING THE MAYOR TO SIGN AMENDMENT ON BEHALF OF
TOWN OF LOS GATOS
JANUARY 11, 2007
DISCUSSION: (continued)
with bonuses awarded to all other management staff, who may qualify to receive bonuses based
on similar language in the Management Compensation Plan. The attached amendment includes
the recommended language.
FISCAL IMPACT:
Funding for an increase in the Town Attorney's compensation is available in the FY 2006-2007
adopted budget.
Attachment: Resolution of the Town Council of the Town of Los Gatos amending agreement
between the Town of Los Gatos and the Town Attorney and authorizing the
Mayor to sign amendment on behalf of Town of Los Gatos
RESOLUTION
RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS
AMENDING AGREEMENT BETWEEN THE TOWN OF LOS GATOS
AND TOWN ATTORNEY AND AUTHORIZING THE MAYOR
TO SIGN AMENDMENT ON BEHALF OF THE TOWN OF LOS GATOS
WHEREAS, an Agreement between the Town of Los Gatos and the Town Attorney, Orry P.
Korb, was approved by the Town Council on April 7, 1997; and
WHEREAS, the Agreement provides that the Town Council shall evaluate the Attorney's
performance annually and may adjust the base salary or provide a one-time, lump sum payment or
some combination of both, based upon an assessment of the Attorney's performance; and;
WHEREAS, after completing a review of the Town Attorney's performance for 2005-06, the
Town Council has determined the Town Attorney agreement shall be amended as follows:
• the annual base salary shall be increased by 5%, from $158,235 to $166,147, retroactive to
June 18, 2006; and
• a performance bonus of $3,500 is awarded, payable as a lump sum in cash or as a deposit to
the employee deferred compensation account.
WHEREAS, a recent audit conducted by the Public Employees Retirement System ("PERS")
recommended that the Town Attorney's contract specify that any bonus or incentive award be paid
for superior performance in accordance with a structured evaluation plan with identified perfonmance
goals and objectives.
RESOLVED, by the Town Council of the Town of Los Gatos, County of Santa Clara, State of
California, that the Town of Los Gatos enter into an amendment to the Agreement with the Town
Attorney (a copy of which is attached and incorporated herein).
BE IT FURTHER RESOLVED, that the Mayor is authorized and hereby directed to execute
said Amendment to the Agreement in the name and behalf of the Town of Los Gatos.
NAPvIGR\AdminWorkFi1es\2007 Council Reports\TA Employment Resolution.doc
Page 1 of 2
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos,
California, held on the th day of , 2007 by the following vote:
COUNCIL MEMBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN:
SIGNED:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
ATTEST:
CLERK ADMINISTRATOR
LOS GATOS, CALIFORNIA
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Page 2 of 2
AMENDMENT TO THE TOWN ATTORNEY AGREEMENT
This Amendment to Agreement is entered into this day of 2006, and is effective as of by and
between the Town of Los Gatos, a municipal corporation ("Town") and Orry P. Korb.
RECITALS:
WHEREAS, Town and Orry P. Korb executed an Agreement approved on April 7, 1997; and
WHEREAS, the Town Council evaluated Orry P. Korb`s performance for 2005-06, and determined the Town
Attorney compensation shall be increased.
WHEREAS, a recent audit conducted by the Public Employees Retirement System ("PERS") recommended that
the Town Attorney's contract specify that any bonus or incentive award be paid for superior performance in accordance
with a structure evaluation plan with identified performance goals and objectives to ensure that a bonus awarded to the
Town Attorney be treated for retirement purposes consistent with bonuses awarded to all other management staff.
IT IS THEREFORE AGREED by the parties as follows:
I . The Agreement is amended to read as follows:
the annual base salary shall be increased by 5%, from $158,235, to $166,147 retroactive to June 18,
2006; and
a performance bonus of $3,500 is awarded, payable as a lump sum in cash or as a deposit to the
employee deferred compensation account.
Item 4 (b) of the agreement is amended to read as follows:
Performance Review.
The Town Council shall evaluate Attorney's performance annually and may adjust the base salary or provide
one-time, hump sum payment or some combination of both at the sole discretion of Council, based upon its
assessment of Attorney's performance. Any bonus or incentive award paid for superior performance shall be
awarded in accordance with a structured evaluation plan with identified performance goals and objectives.
The terms and conditions of the Agreement, except as herein amended, shall remain in full force and effect.
IN WITNESS WHEREOF, the parties have executed this Amendment to the Town Attorney Agreement on the
date written above.
TOWN OF LOS GATOS
BY:
Joe Pirzynski, Mayor
BY:
Orry P. Korb, Town Attorney
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