Appointment of Interim Town Managerpow x of
COUNCIL AGENDA REPORT
os CptO
DATE: FEBRUARY 25, 2015
TO: MAYOR AND TOWN COUNCIL
FROM: RUMI PORTILLO, HUMAN RESOURCES
ROBERT SCHULTZ, TOWN ATTORNEY]
MEETING DATE: 03/03/15
ITEM NO: I
SUBJECT: APPOINTMENT OF INTERIM TOWN MANAGER
STAFF RECOMMENDS THAT THE TOWN COUNCIL CONSIDER:
A. APPROVING AN EMPLOYMENT AGREEMENT TO APPONT LESLIE R.
WHITE AS INTERIM TOWN MANAGER
B. APPROVING FY 14/15 BUDGET ADJUSTMENT IN THE AMOUNT OF $70,000
(MARCH 2015 THROUGH JUNE 30, 2015), FUNDING AVAILABLE FROM
ANTICIPATED FY 14/15 YEAR -END REVENUES ABOVE EXPENDITURES
RECOMMENDATION:
Staff recommends that the Town Council consider:
1. Approving an Employment Agreement to appoint Leslie R. White as Interim Town Manager
2. Approving FY 14115 budget adjustment in the amount of $70,000 (March 2015 through
June 30, 2015), funding available from anticipated FY 14/15 year -end revenues above expenditures.
BACKGROUND:
Leslie R. White, an executive consultant with many years of city management experience, has
previously assisted the Town of Los Gatos as an Interim Town Manager, Interim Parks and Public
Works Director, Special Advisor for the financing of the new Library and Special Hearing Officer under
the Civil Service Rules. Mr. White is available and agreeable to serving as an Interim Town Manager
until a new Town Manager is appointed. Current Town Manager Greg Larson recently announced his
plans to retire and efforts will be underway immediately to begin the search a permanent replacement.
DISCUSSION:
The attached Employment Agreement sets forth the terms and conditions under which the Interim Towr.
Manager will be compensated. The compensation for the Interim appointment is established at the same
Prepared bv: Rumi Portillo
Reviewed by:
Human Resources
Town Manager
Robert Schultz
Director Town Attorney
N: MMAdminWorkFiles\2015 Couoeil Reports\Mar.3 \Counci1 Memo Les White Agreement March 3 2015
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MAYOR AND TOWN COUNCIL
SUBJECT: APPROVE AN EMPLOYMENT AGREEMENT TO APPOINT LESLIE R. WHITE AS
INTERIM TOWN MANAGER
FEBRUARY 25, 2015
DISCUSSION (cont'd):
rate of pay as the Town Manager. The contract does not include pension, medical, dental, vision, life and
disability insurances that are provided with a permanent appointment.
The term of the appointment is March 13, 2015 and is intended to continue until a new Town Manager is
appointed.
CONCLUSION:
The objective of the Employment Agreement for an Interim Town Manager is to assist in a smooth,
efficient and effective transition to a new Town Manager.
ENVIRONMENTAL ASSESSMENT:
This item is not a project defined under CEQA, and no further action is required.
FISCAL IMPACT:
In accordance with the Employment Agreement, Mr. White will be compensated a base pay rate
equivalent to the Town Manager's annual salary of $200,940 plus $9,000 in lieu of a 457 contribution,
which totals approximately $17,495 per month ($100.93 per hour). In addition to the base rate, Mr.
White will be provided an auto allowance of $500 per month.
Pension, medical, dental, vision and life insurances for this position are estimated at approximately
$73,640 annually (equivalent to $6,137 per month or $35.40 per hour). However, those benefits have
been waived and are not included as costs for the purpose of this Employment Agreement.
Funding to support the Employment Agreement for the Interim Town Manager is available from the
current year's excess revenues and no additional appropriations are required in FY 2014/15. Funding to
support this agreement in FY 2015/16 will be included in next year's proposed fiscal year budget.
Attachments:
1. Agreement for Employment Interim Town Manager — Leslie R. White
AGREEMENT FOR EMPLOYMENT
INTERIM TOWN MANAGER
This Agreement is made and entered into this 16th day of March, 2015, by and between the Town
of Los Gatos, hereinafter referred to as "Town" and Leslie R. White, hereinafter referred to as
"White." Town and White are together the "Parties"
RECITALS
WHEREAS, the Town's Town Manager position is a regular position that will be vacated as of
March 13, 2015 and for which the Town will be conducting a recruitment for a permanent
appointment; and
WHEREAS, during the recruitment period, the Town will have the immediate need for an
employee to temporarily perform the position of Town Manager, a position involving specialized
skills including senior management and leadership skills; and
WHEREAS, White is competent and qualified to perform the services required by the
Agreement, and the Town wishes to have White perform certain critically necessary on -going
duties and functions of the Town Manager position on an interim basis; and
WHEREAS, White's employment is authorized by Government Code section 21221(h), which
pen-nits the Town to appoint a Ca1PERS retired annuitant to a vacant position requiring
specialized skills during recruitment for a permanent replacement.
WHEREAS, the Town desires to appoint White to the position of Interim Town Manager of the
Town of Los Gatos on March 16, 2015.
WHEREAS, the Town desires to establish the terns and conditions of employment of White to
the position of Interim Town Manager of the Town of Los Gatos, including the duties, salary and
benefits of employment.
WHEREAS, White desires to accept employment as Interim Town Manager of the Town of Los
Gatos under the terms set forth herein.
NOW, THEREFORE, in consideration of the respective and mutual covenants hereinafter
contained and made, and for other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, and agreed, and subject to all the terms and conditions
hereof, the Parties agree as follows:
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Agreement
1. Employment of Interim Town Manager. This Agreement establishes the terms and
conditions of employment of White as the Interim Town Manager of the Town of Los Gatos.
2. Powers and Duties. As an Interim Town Manager, White shall assume the powers and
duties of the Town Manager pursuant to § 2.30.295 of the Code of the Town of Los Gatos,
California. White will perform the functions and duties of the Town Manager as specified under
the laws of the State of California, the Los Gatos Municipal Code, and the ordinances and
resolutions of the Town of Los Gatos, and perform such other duties and functions as the Town
Council may assign from time to time. Such employment is "at will" and subject to the terms of
this Agreement.
3. Term. This Agreement will become effective upon the date of adoption by the Town
Council.. White's first day of employment shall be March 16, 2015. This agreement will expire at
the time the Town hires a permanent Town manager, provided however, there may be a brief
period of overlap after the Town hires a permanent Town Manager so that White can assist in the
transition of the permanent appointment. White's employment is also subject to earlier
termination as set forth in Section 5 below.
4. Compensation and Work Schedule.
(a) Base Salarv. Town shall pay White the monthly base salary of seventeen
thousand four - hundred and ninety -five dollars ($17,495.00), in installments at the same time as
other employees of Town are paid and shall be subject to all applicable payroll taxes and
withholdings. The Town confirmed that this rate is not less than the minimum, nor in excess of
the maximum, paid by the Town to other employees performing comparable duties as listed on
the Town's publicly available pay schedule and publicly available employment agreements.
(b) Leave Days. As of the Effective Date, White shall be credited with 10 days of
paid leave. White shall be entitled to use or redeem vacation leave in whatever manner is
permitted pursuant to Town policy, as same may be amended from time to time by action of the
Town Council.
(c) Holidays. As of the Effective Date, White shall be afforded Town Holidays in the
same manner as other benefitted Management employees.
(d) Support Service Equipment. White shall be provided office space and necessary
equipment sufficient to fulfill the obligations under this Agreement, as determined by the Town
Council, at no cost to White.
(e) Auto Allowance. White shall receive annual monthly auto allowance of five
hundred dollars ($500.00).
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(t) Benefits. Other than the compensation described above, White will receive no
other benefits, incentives, compensation in lieu of benefits or any other form of compensation.
(g) Work Schedule and 960 hours Limitation. White is expected to devote necessary
time within and outside normal business hours to the business of the Town. White may use his
own judgment (consistent with his experience and with standards of practice in the industry) to
determine his specific hours and his work task performed or work events attended subject to the
direction and oversight of the Town Council. In addition, pursuant to Government Code Section
21221(h) and Section 7522.56(d), White is allowed to work a maximum of 960 hours per fiscal
year for all public employers that contract with Ca1PERS for retirement benefits. White and the
Town shall be required to monitor the number of hours White works and ensure that White does
not work more than 960 hours per fiscal year.
(h) Exempt Position. The position is exempt from FSLA overtime pay requirements.
This temporary full -time employment typically will average 40 hours per week. White's typical
working hours will be during the Town's regular business hours, plus evening hours to attend
Council meetings and other business. Due to the nature of the position, however, it is understood
that working hours may exceed 40 hours per week and may occasionally be slightly less than 40
hours per week. All hours worked must be tracked and submitted to the Town for counting
against the 960 -hour rule per fiscal year limitation.
5. Termination. Town may terminate White at any time with or without cause during the
term of this Agreement upon thirty (30) days' notice of its decision to terminate this Agreement.
White specifically agrees that the requirements of Town Code sections 2.30.285 and 2.30.290 are
not applicable to this Agreement. Due to the important nature of White's duties to the Town, if
White desires to terminate this Agreement, White must provide the Town Council with thirty
(30) days written notice prior to the date be ceases to perform his duties and responsibilities
under this Agreement and the provisions of the Town's Municipal Code.
6. Professional Development. Town agrees to pay for the professional dues, subscriptions,
and other costs White deems necessary for his participation in national, state, regional, and local
associations and organizations and in meetings and conferences (e.g., the International
City /County Management Association, League of California Cities, and County City Managers'
Association), subject to budgetary approval and Town Council oversight.
7. Business Expenses. Town shall reimburse White for all necessary and appropriate
business expenses, including, but not limited to, the costs of business meetings, business meals,
staff functions and special events attended in an official capacity, subject to any guidelines the
Town Council may impose. Expenses associated with White's use of his personal automobile
shall be reimbursed by payment of the auto allowance pursuant to this Agreement, and shall not
be reimbursed as a business expense.
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8. Indemnification. Town agrees to defend, hold harmless and indemnify White against any
tort, professional liability claim or demand, or other legal action, whether groundless or
otherwise, arising out of an alleged act or omission occurring in the performance of White's
duties. Town is not required to indemnify White for any illegal or criminal acts committed by
White.
9. Bonding Requirements. Town shall bear full cost of the Fidelity Bond required of White
under any law or ordinance.
10. Other Terms and Conditions. The Council, in consultation with White, shall fix any such
other terms and conditions of employment, as it may determine from time to time, relating to the
performance of White, provided such terms and conditions are not inconsistent with or in
conflict with the provision of this Agreement or State law.
11. Severabilitv. If any provision, or portions thereof, contained in this Agreement is held
unconstitutional, invalid or unenforceable, the remainder of this Agreement, or portion thereof,
shall be deemed severable and shall remain in full force and effect.
12. General Provisions.
(a) The text herein shall constitute the entire Agreement between the Parties.
(b) No provisions of this Agreement may be modified, waived or discharged unless
such waiver, modification or discharge is agreed to in writing by the Town and White. No
waiver of either party at any time of the breach of, or lack of compliance with, any conditions or
provisions of this Agreement shall be deemed a waiver of other provisions or conditions hereof.
(c) This Agreement contains the entire agreement and understanding between the
Parties and contains all of the terms and conditions of the parties' agreement and supersedes any
other oral or written negotiations, discussions, representations, or agreements. White
acknowledges that he has not relied on any promises, statement, representations, or warranties
except as set forth expressly in this Agreement.
(d) This Agreement shall be binding upon and shall inure to the benefit of the
respective heirs, executors, administrators, successors and assigns of the parties, provided
however, that White may not assign his obligations hereunder.
(e) This Agreement shall be governed by and construed in accordance with the laws
of the State of California, and venue for any action concerning this Agreement shall be limited to
the Superior Court for the County of Santa Clara.
(f) Unless provided for otherwise by this Agreement, all provisions of the Town
Code which are applicable to the Town Manager shall remain in full force and effect.
L,
(g) Each party to this Agreement warrants to the other party that the party has either
had the assistance of counsel in negotiating for and preparation of this Agreement or could have
had such assistance and voluntarily declined to obtain such assistance.
Leslie R. White
TOWN OF LOS GATOS
By: Marcia Jensen, Mayor
ATTEST:
Shelley Neis, Clerk Administrator
Approved As To Form:
Robert Schultz, Town Attorney
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