09 Staff Report - Agreement Between Town of Los Gatos and Town ManagertpW N OF
COUNCIL AGENDA REPORT
DATE: January 11, 2007
MEETING DATE: 1/1.6/07
ITEM NO.
TO: MAYOR AND TOWN COUNCIL
FROM: RUMI PORTILLO, HUMAN RESOURCES DIRECTOR
SUBJECT: ADOPT RESOLUTION AMENDING THE AGREEMENT BETWEEN
THE TOWN OF LOS GATOS AND THE TOWN MANAGER 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 Manager and authorizing the Mayor to sign amendment on
behalf of Town of Los Gatos.
DISCUSSION:
The Town Council approved an agreement with the Town Manager, effective November 13,
2000, which provides for an annual performance evaluation and possible salary adjustments. A
review of the Town Manager's performance has been completed and the following salary
adjustment is deemed appropriate:
The annual base salary-shall be increased by 5%, from $181,514 to $190,590, retroactive to
November 5, 2006.
A recent audit conducted by the Public Employees Retirement System ("PERS") recommended
that the Town Manager'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 Manager be treated for
PREPARED BY
RUMI PORTILLO
Human Resources Director
RP:pg
N:AMGR\AdminWorkPi1es\2007 Council Reports\TM Employment Contract Council Report Jan 16 2007.doc
Reviewed by: Assistant Town Manager L.-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 MANAGER AND AUTHORIZING
THE MAYOR TO SIGN AMENDMENT ON BEHALF OF TOWN OF LOS
GATOS
JANUARY 11, 2007
DISCUSSION: (continued)
retirement purposes consistent 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 Manager'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 Manager 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 MANAGER 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 Manager, Debra
Figone, was approved by the Town Council on October 16, 2000; and
WHEREAS, the Agreement provides that the Town Council shall evaluate the Manager'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 Manager's performance; and
WHEREAS, after completing a review of the Town Manager's performance between November 6,
2005 and November 6, 2006, the Town Council has determined the Town Manager's salary will be increased by
5% from $181,514 to $190,590, retroactive to November 5, 2006; and
WHEREAS, a recent audit conducted by the Public Employees Retirement System ("PERS")
recommended that the Town Manager'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.
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 Manager (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.
PASSED AND ADOPTED at a meeting of the Town Council of the Town of Los Gatos,
California, held on the day of , 2006 by the following vote:
COUNCIL MEMBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN:
SIGNED:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
ATTEST
CLERK ADMINISTRATOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
N:AMGR\AdminWorkFiles,2007 Council Reports' l'own Man ,er A~_neemcnt Resolutioi.doc
AMENDMENT TO THE TOWN MANAGER AGREEMENT
This Amendment to Town Agreement AGR is entered into this day of
January 2007, and is effective as of November 5, 2006, by and between the Town of Los Gatos, a
municipal corporation ("Town") and Debra Figone.
RECITALS:
WHEREAS, Town and Debra Figone executed an Agreement approved on October 16,
2000; and
WHEREAS, the Town Council evaluated Debra Figone's performance for the period
between November 6, 2005 and November 5, 2006, and determined the Town Manager
compensation shall be adjusted.
WHEREAS, a recent audit conducted by the Public Employees Retirement System
("PERS") recommended that the Town Manager'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 Manager
be treated for retirement purposes consistent with bonuses awarded to all other management
staff.
IT IS THEREFORE AGREED by the parties as follows:
Item 4 subsection (a) of the Agreement is amended to read as follows:
4. Compensation.
(a) Effective November 5, 2006, Town shall pay Figone the annual base salary
of one hundred ninety thousand five hundred and ninety dollars
($190,590.00) ("Base Salary"), in installments at the same time as other
employees of Town are paid.
2. Item 9 of the Agreement is amended to read as follows:
9. Performance Review.
(c) 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.
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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
Manager Agreement on the date written above.
TOWN OF LOS GATOS
BY:
Joe Pirzynski, Mayor
BY:
Debra Figone, Town Manager
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