Town Attorney Employment Agreement AmendmentOWN OF
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DATE:
TO:
FROM:
SUBJECT:
MEETING DATE: 12/16/14
ITEM NO: /
COUNCIL AGENDA REPORT
DECEMBER 5, 2014
MAYOR AND TOWN COUNCIL
RUMI PORTILLO, HUMAN RESOURCES DIRE
APPROVE AN AMENDMENT TO THE EMPLOYMENT AGREEMENT
BETWEEN THE TOWN OF LOS GATOS AND THE TOWN ATTORNEY FOR A
2% INCREASE TO THE ANNUAL BASE SALARY EFFECTIVE WITH THE
TOWN ATTORNEY'S ANNIVERSARY DATE OF DECEMBER 12, 2014 AND A
LUMP SUM PERFORMANCE BONUS OF $2,000
RECOMMENDATION:
Approve an amendment to the employment agreement between the Town of Los Gatos and the Town
Attorney for a 2% wage increase to the annual base salary, effective with the Town Attorney's
anniversary date of December 12, 2014 and a lump sum performance bonus of $2,000.
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 an annual performance review, and conditions for termination/severability.
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 in the terms and conditions of employment.
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 first year in the
position, from December 2013 to December 2014.
Reviewed by: Assistant Town Manager QA Town Attorney Finance
NAMGWAdminWorkFiles\2014 Council Repons\Dm 16 \12 -16 -14 TA.Ameodment.to.Contmct.doc
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MAYOR AND TOWN COUNCIL
SUBJECT: APPROVE AN AMENDMENT TO THE EMPLOYMENT AGREEMENT
BETWEEN THE TOWN OF LOS GATOS AND THE TOWN ATTORNEY FOR A
2% INCREASE TO THE ANNUAL BASE SALARY EFFECTIVE WITH THE
TOWN ATTORNEY'S ANNIVERSARY DATE OF DECEMBER 12, 2014 AND A
LUMP SUM PERFORMANCE BONUS OF $2,000
DECEMBER 5, 2014
CONCLUSION:
Based upon the satisfactory completion of the Town Attorney's performance review, it is
recommended that the Town Attorney be awarded a 2% wage increase to the annual base salary on his
one -year anniversary date. The wage increase is consistent with 2% adjustments provided to other
Town management salaries for FY 2014/15. In addition, it is recommended that the Town Attorney
receive a one -time lump sum performance bonus of $2,000.
The dollar amount equivalent for the wage increase based on the current annual salary of $185,000 is
as follows:
2% increase to base salary: $185,000 + $3,700 = new base of $188,700
All other contract provisions in the Town Attorney's Employment Agreement will remain the same.
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. In addition to the
lump sum performance bonus and increase in base salary, the Town is required to make pension
contributions.
Thus, for 2014/15, the total fiscal impact for the lump sum bonus and base increase including pension
contributions is a total of $5,089:
• $2,000 lump sum performance bonus with pension: $2,000 + $448 = $2,448
• 2% increase to base with pension, pro -rated for 7 months: $3,700 + $828 = $2,641 (for the
period December 2014 through June 2015)
On an ongoing basis, the cost for a full year of the 2% increase to base, including the pension rate to
be adjusted for 2015/16, is approximately $4,581.
The cost will be absorbed in the current fiscal year (FY 2014/15) from other salary savings in the
Town's budget. The increased base salary will be included in the base budget for future fiscal years.
The Town Attorney is responsible to make pension contributions of 8% on the lump sum bonus and
the base salary, as required by Ca1PERS. The Town Attorney's pension contributions are paid through
payroll deductions.
Attachments:
1. Amendment to the Agreement for Employment — Town Attorney
FIRST AMENDMENT TO THE AGREEMENT FOR EMPLOYMENT
TOWN ATTORNEY
This Amendment to Town Agreement AGR13 -180 is entered into this _ day of
December, 2014, by and between the Town of Los Gatos, a municipal corporation ( "Town ") and
Robert Schultz ( "Employee ").
RECITALS:
WHEREAS, Town and Robert Schultz executed an Agreement effective December 12,
2013 to provide Town Attorney services to the Town;
WHEREAS, in November 2014, the Town Council concluded an evaluation of Robert
Schultz's performance and determined that all performance goals and objectives were met or
exceeded; and
WHEREAS, on the basis of the annual evaluation, the Town Council desires to amend
the employment agreement to award a 2% wage increase to the annual base salary, effective with
the Town Attorney's anniversary date of December 12, 2014 and a lump sum performance bonus
of $ 2,000.
IT IS THEREFORE AGREED by the parties as follows:
Item 4 of the Agreement is amended to read as follows:
4. Compensation
(a) Base Salary.
(1) The Town Attorney is awarded a 2% wage increase for an annual base
salary of $188,700, effective with the Town Attorney's anniversary date of
December 12, 2014.
(b) Performance Review.
(1) On the basis of an annual performance evaluation covering the first year of
employment from December 2013 to December 2014, the Town Attorney
is awarded a one -time lump sum payment of $2,000.
ATTACHMENT 1
IN WITNESS WHEREOF, the parties have executed this Amendment to the Town
Attorney Agreement on the date written above.
Y C I +d I►> <i 121I6 RE s K y Ci M
Marcia Jensen, Mayor
Robert Schultz, Town Attorney
ATTEST:
Shelley Neis, Clerk Administrator for
Town of Los Gatos