Staff ReportDATE:
TO:
FROM:
MEETING DATE: 09/01/2015
ITEM NO: "1
COUNCIL AGENDA REPORT
AUGUST 27, 2015
MAYOR AND TOWN COUNCIL
ROBERT W. SCHULTZ, TOWN ATTORNEY
RUMI PORTILLO, HUMAN RESOURCES DIRECTOR
SUBJECT: EMPLOYMENT AGREEMENT FOR NEW TOWN MANAGER
RECOMMENDATION:
Approve the employment agreement with Laurel Prevetti for appointment to Town Manager and
authorize the Mayor to execute the agreement.
BACKGROUND:
In accordance with the Town's Municipal Code, the Town Manager is appointed by the Town
Council. The terms and conditions of employment historically have been set forth in an
employment agreement between the appointee and the Town. The employment agreement is
established at the time of appointment and updated periodically on an as- needed basis.
The Town contracted with an executive search firm, Teri Black and Associates, for the
recruitment of a new Town Manager. The recruitment process is now complete and the Town
Council selected Laurel Prevetti from a pool of highly qualified candidates for the position.
DISCUSSION:
The attached employment agreement sets forth the terms and conditions of Laurel Prevetti's
appointment to the position. Under the proposed agreement, Ms. Prevetti commences her
position as the Town Manager on September 2, 2015. The proposed annual base salary is
$203,000.
PREPARED BY: ROBERT W. SCHULTZ RUMI PORT LLO
TOWN ATTORNEY HUMAN RESOURCES DIRECTOR
Town Manager
N: \PSLCuwmt\StaITUtumilCurt t\Mgmt & Untep Salaries \Town ManagertPmveailTC mport Town Managua Appi Pmvetti.doc
TOWN MANAGER EMPLOYMENT AGREEMENT
This Agreement made and entered into the 2nd day of September, 2015, by and between the
Town of Los Gatos, a municipal corporation in the State of California ( "TOWN "), and Laurel
Prevetti ( "MANAGER ").
RECITALS
A. The Town Council of the Town of Los Gatos desires to appoint Laurel Prevetti to the
position of Town Manager of the Town of Los Gatos on September 2, 2015.
B. It is the desire of the Town Council to establish the ternls and conditions of employment
of Laurel Prevetti as Town Manager of the Town of Los Gatos, including the duties, salary and
benefits of employment.
C. Laurel Prevetti desires to accept employment as Town Manager of the Town of Los
Gatos under the teens 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:
SECTION 1. DUTIES AND RESPONSIBILITIES:
A. Appointment as Town Manager. TOWN hereby agrees to employ MANAGER in
the capacity of Town Manager for TOWN during the term of this Agreement. MANAGER will
perform the functions and duties specified in Section 2.30.295 of the Los Gatos Municipal Code
for this position and perform such other legally permissible and proper duties and functions as
the Town Council may from time to time assign or delegate.
B. Exclusive Emplovment. During the term of this Agreement, MANAGER shall be
in the exclusive employ of TOWN; provided, however, that the term "exclusive employ" shall
not prohibit future part-time employment which the Employee may desire to accept with
appropriate prior knowledge and approval of the Town Council. "Appropriate prior knowledge
and approval of the Town Council" shall mean that MANAGER shall give four (4) weeks
written notice to the Town Council prior to accepting part-time employment and approval of the
Town Council shall be deemed given unless any Town Council member states in writing that
they desire a closed session to discuss the part-time employment. Such part-time employment
shall not in any way conflict in time or interest with MANAGER's responsibilities to TOWN.
Town Council shall have uncontrolled discretion in granting part-time outside employment and
its determination to grant or deny part-time outside employment shall be final.
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ATTACHMENT
SECTION 2. SALARY:
A. Initial Salary. TOWN agrees to pay MANAGER for her services rendered in the
amount of $203,000 annually, payable in installments at the same time as other employees of
TOWN are paid.
B. Intial Performance Evaluation. The Town Council shall evaluate the MANAGER's
perfonnance on or before March 15, 2016. This shall be a performance only evalution with no
adjustment to compensation.
C. Salary Increases. The Town Council shall evaluate Manager performance annually
thereafter beginning Setember 2016. Should the Town Council, upon completion of its annual
review of MANAGER's performance pursuant to this Agreement, determine that MANAGER
has met its performance expectations; the Town Council shall increase MANAGER's
compensation at least consistent with compensation increases granted by Town Council to other
Town Management (At -Will /Unrepresented) Employees. MANAGER understands and agrees
that she has no entitlement to an increase in compensation. Any decision to increase
MANAGER's compensation shall be retroactive to the beginning of the pay period immediately
preceding the anniversary of the Effective Date when the review is conducted pursuant to this
Agreement.
SECTION 3. BENEFITS:
All provisions of the Town Code and regulations and rules of Town relating to vacation
and sick leave, medical, dental, vision, retirement (2% at 60 formula, 36 -month highest average
salary) and pension system contributions, holidays, cash out provisions, and other fringe benefits
and working conditions pertaining to Town Management (At -Will /Unrepresented) Employees as
they now exist or hereafter may be amended, except as otherwise set forth herein, also shall
apply to MANAGER. Nothing in this Agreement shall affect any vacation, personal leave,
administrative leave, sick time, pension system contributions or accurals, or other benefits which
MANAGER has accrued and is owed or attributable to MANAGER as of the date of this
Agreement, all of which shall remain accrued, owing, and attributable to MANAGER until used
or redeemed by MANAGER.
SECTION 4. HOURS OF WORK AND LEAVE BENEFITS:
A. Regular Hours. MANAGER's duties may involve expenditures of time in excess
of eight (8) hours per day and/or forty (40) hours per week, and may also include time outside
normal office hours such as attendance at Town Council and other meetings. MANAGER shall
not be entitled to additional compensation for any work performed in excess of the TOWN's
regular workweek.
B. Administrative Leave. It is recognized that MANAGER must devote a great deal
of her time outside normal office hours without benefit of paid overtime in the conduct of
TOWN business, and, to that end, MANAGER shall be entitled to administrative leave in an
equivalent amount to that granted Town Management (At- Will/Unrepresented) Employees,
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which the parties agree is five (5) days per year. MANAGER shall be entitled to accrue, use or
redeem administrative 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. Personal Leave. MANAGER shall be entitled to personal leave in the amount of
six (6) days per year. MANAGER shall be entitled to accrue, use or redeem personal 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.
D. Vacation Leave. MANAGER shall be entitled to vacation leave in the amount of
25 days per year. MANAGER shall be entitled to accrue, use or redeem personal 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.
E. Sick Leave. MANAGER shall be entitled to sick leave in the amount of 12 days
per year. MANAGER shall be entitled to accrue, use or redeem personal 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.
F. Mileage Reimbursement, Cell Phone Stipend Holidays
Bereavement/Compassion Leave Flexible Health Spending Account Employee Assistance
Program, and Other Fringe Benefits. MANAGER shall be entitled to mileage reimbursement,
cell phone stipend, holidays, bereavement /compassion leave, Flexible Health Spending Account,
Employee Assistance Program, and other fringe benefits as they now exist or hereafter may be
amended for Town Department Directors.
SECTION 5. TECHNOLOGY:
A. Technology. TOWN agrees to budget, within the budget amount approved by the
TOWN, a technology budget to assist MANAGER in keeping technologically current and
personal productivity high. The technology improvements will be used to pay the cost of
acquisition of equipment and purchase of services related to information systems, data handling,
communications and productivity and shall be budgeted for the good of the Town in accordance
with approved budgeting limitations. Purchases for technology improvements shall remain the
property of the TOWN.
SECTION 6. ADDITIONAL EXPENSES:
A. Dues and Subscriptions. TOWN agrees to pay the professional dues and
subscriptions of MANAGER necessary for her continuation and full participation in such
national, regional, state and local associations and organizations as are necessary and desirable
for her continued professional participation, growth, and advancement and for the good of
TOWN in accordance with approved budgetary limitations.
B. Professional Development. TOWN agrees that attendance at ICMA, League of
California Cities, American Leadership Forum, and other professional development activities is
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both beneficial and expected. TOWN hereby agrees to pay the travel, lodging, and subsistence
expenses of MANAGER for professional and official travel, lodging, meetings, and occasions,
and for short courses, institutes and seminars necessary to continue the professional development
of MANAGER, and to adequately pursue necessary official and other functions for TOWN, in
accordance with approved budgetary limitations. Notwithstanding the above, appropriate prior
knowledge and approval of the Town Council must be obtained prior to the regiitering and
expenditure of funds for conferences, seminars, forums or other professional development that
exceeds the length one (1) day. "Appropriate prior knowledge and approval of the Town
Council" shall mean that the MANAGER shall give at least four (4) weeks written notice to the
Town Council prior to registering for any professional development event that exceeds the length
of one (1) day and approval of the Town Council shall be deemed given unless any Town
Council member states in writing that they desire a closed session to discuss the matter.
C. Executive Expenses. TOWN recognizes that certain expenses of a non - personal
and job - affiliated nature are incurred by MANAGER and hereby agrees to reimburse such
expenses upon presentation of a receipt and submission of the appropriate confining purchase
requisition to the Mayor and Town Finance Department, in accordance with approved budgetary
limitations and subject any policies and guidelines the Town Council may impose.
SECTION 7. TERM; TERMINATION:
A. Term of Agreement. This Agreement shall commence upon execution by the
parties and become effective September 2, 2015 and extend indefinitely until terminated as
provided hereinafter.
B. At -Will Employment. MANAGER's employment with the Town is "at- will" and
MANAGER serves at the pleasure of the Town Council, pursuant to Section 2.30.260 of the
Municipal Code. As such, a majority of the Town Council may terminate MANAGER's
employment at any time, with or without cause, with or without advance notice, subject only to
the hearing requirements set forth in Municipal Code sections 2.30.285, as amended by the Town
Council on August 18, 2015.
C. Termination Without Cause. In the event that TOWN terminates MANAGER's
employment for reasons other than those set forth in subsection D below, including without
limitation, for no reason stated, within the tern of this Agreement, or any extensions, TOWN
agrees to pay MANAGER a cash payment equal to six (6) months of the MANAGER's then
current salary and any benefits that are lawfully required to be continued pursuant to COBRA
and other statutes. Following such six (6) month period, MANAGER retains the right to
participate in Town health and related benefit programs, should such programs be instituted
during the term of this Agreement, at MANAGER's own and sole expense pursuant to the terms
of COBRA. MANAGER shall be compensated for any unused vacation leave, holidays, and
other benefits then accrued consistent with Town policies. The schedule of the payment pursuant
to this section shall be at the sole discretion of the MANAGER.
D. Termination With Cause. The TOWN may terminate MANAGER's employment
hereunder at any time for cause subject to the provisons of Los Gatos Municipal Code Section
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2.30.285. No lump sum cash payment or other severance pay shall be due MANAGER upon any
termination for cause. For purposes of this Agreement, "cause" shall mean any of the following:
(i) a gross or habitual failure to perform the functions and duties of the Town MANAGER or any
other obligations as required by the terms of this Agreement; (ii) Any other intentional or grossly
negligent action or inaction by MANAGER that materially and substantially: (A) impedes or
disrupts the operations of the TOWN or its organizational units; (B) is detrimental to employee
or public safety; or (C) violates properly established rules or procedures of the Town causing a
material and substantial adverse effect on the TOWN's interests as clearly defined and delineated
by properly established Town Council action taken by the Town Council as a body, policy,
regulations or ordinances of the TOWN; (iii) That MANAGER has been willfully and
intentionally absent without leave, or has willfully and intentionally failed to report after leave of
absence has expired; (iv) That Manager has willfully failed or refused to appear in obedience to
lawful process or order of the Town Council or to answer questions under oath, before the
TOWN Council or before a duly authorized committee of Congress of the United States or of the
Legislature of the State of California, or a committee or subcommittee of said Congress or
Legislature, or before any authorized court, office or tribunal, or before a Grand Jury, on any
subject relating to (1) matters connected with the conduct of official business of the TOWN or of
any division, department, board or commission thereof, or (2) any of the matters set forth in
sections 1028 and 1028.1 of the Government Code of the State of California; or (v) That
Manager has been convicted of a misdemeanor involving a crime of moral turpitude or a felony,
or entry of a plea of nolo contenders with regard to a misdemeanor involving a crime of moral
turpitude or a felony.
E. Voluntary Resignation. MANAGER may voluntarily resign her position with
TOWN before expiration of the tern of this Agreement by giving TOWN sixty (60) days prior
written notice. No lump sum cash payment or other severance pay shall be due MANAGER
upon any voluntary resignation.
F. Termination Based on Disability or Death. In the event MANAGER is
permanently disabled, as determined by MANAGER's duly licensed physician, or is otherwise
unable to perform her duties because of sickness, accident, injury, mental incapacity or health
reasons for a period of three (3) consecutive months beyond any accrued sick leave, Town may
terminate this Agreement.
G. Limitation on Removal. Pursuant to Los Gatos Municipal Code Section 2.30.290,
notwithstanding anything to the contrary herein, TOWN may not remove MANAGER from
office during or within any period of 30 days following any general municipal election held in
the Town at which election a member of the Town Council is elected.
H. Limitation on Obligation. Notwithstanding anything to the contrary herein, TOWN
shall not be obligated to pay, and shall not pay, any amounts or continue any benefits under this
agreement if MANAGER is tenninated in the event MANAGER is convicted of a crime
involving an abuse of her office or position. Any paid leave salary offered by TOWN to
MANAGER pending an investigation shall be fully reimbursed by MANAGER if MANAGER is
convicted of a crime involving an abuse of her office or position. For the purposes of this
section, "abuse of office or position" means and is limited to the definition under Government
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Code section 53243.4 either of the following: (a) an abuse of public authority including but not
limited to waste, fraud, and violation of the law raider color of authority; or (b) a crime against
public justice, including but not limited to, a crime described in Title 7 (commencing with
Section 92) of Part I of the California Penal Code.
SECTION 8. GENERAL PROVISIONS:
A. Entire Agreement. This Agreement shall constitute the full, complete and
exclusive agreement between the parties hereto and shall supersede all prior and
contemporaneous agreements, understandings and representations regarding the subject matter
hereof, whether oral or written.
B. Indemnification. TOWN agrees to defend, hold harmless and indemnify
MANAGER against any tort, professional liability claim or demand, or other legal action,
whether groundless or otherwise, arising out an alleged act or omission occurring in the
performance of MANAGER's duties. TOWN, at its direction, is not required to indemnify
MANAGER for any illegal or criminal acts for which a court of competent jurisdiction has
determined, without possibility of appeal, was committed by MANAGER.
C. Bonding Requirements. TOWN shall bear full cost of the Fidelity Bond required
of MANAGER under any law or ordinance.
D. Assignment. This Agreement shall be binding upon, inure to the benefit of and be
enforceable by TOWN and MANAGER and their respective successors, assigns, heirs and
executors, except that MANAGER may not assign this Agreement or delegate any of her
obligations hereunder and may only assign her rights hereunder with the prior written consent of
TOWN.
E. Severability. If any provision, or any portion thereof, contained in this Agreement
is held to be unconstitutional, invalid, or unenforceable, the remainder of this Agreement or
portion thereof shall be deemed severable, shall not be affected and shall remain in full force and
effect.
F. Notices. Any notice required under this Agreement shall be in writing, shall be sent
by personal delivery, courier or first class mail, return receipt requested, and shall be deemed
effective upon receipt.
G. Governing Law. This Agreement shall be governed by and interpreted in
accordance with the laws of the State of California, without regard to its conflicts of laws
principles.
H. Attorney's Fees. In the event of any dispute between the parties hereto relating to
or arising out of this Agreement, the prevailing party shall be entitled to receive its reasonable
attorneys' fees and costs, in addition to any other relief it may receive.
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IN WITNESS WHEREOF, the Town of Los Gatos has caused this Agreement to be
signed and executed in its behalf by its Mayor, and duly attested to by its Town Clerk, and the
MANAGER has signed and executed this Agreement the day and year first above written.
TOWN OF LOS GATOS
Mayor Marcia Jensen
MANAGER
Laurel Prevetti
ATTEST:
Shelley Neis, Town Clerk Administor
APPROVED AS TO FORM:
Robert W. Schultz, Town Attorney
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