Staff Reportpow x of
1.VI t
t `°Y4i s COUNCIL AGENDA REPORT
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DATE: JANUARY 10, 2016
MEETING DATE: 01/19/16
ITEM NO: q
TO: MAYOR AND TOWN COUNCIL
FROM: LAUREL PREVETTI, TOWN MANAGER
SUBJECT: APPROVE AN AMENDMENT TO THE EMPLOYMENT AGREEMENT
BETWEEN THE TOWN OF LOS GATOS AND THE TOWN ATTORNEY FOR A
5% INCREASE TO THE ANNUAL BASE SALARY EFFECTIVE WITH THE
TOWN ATTORNEY'S ANNIVERSARY DATE OF DECEMBER 12, 2015 AND A
LUMP SUM PERFORMANCE BONUS OF $5,000.
RECOMMENDATION:
Approve an amendment to the employment agreement between the Town of Los Gatos and the Town
Attorney for a 5% wage increase to the annual base salary effective with the Town Attorney's
anniversary date of December 12, 2015 and a lump sum performance bonus of $5,000.
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 second year in
the position, from December 2014 to December 2015.
PREPARED BY: VILCIA RODRIGU ,
ADMINISTRATIV N YST
Reviewed by: Assistant Town Manager own Attorney!_Finance
PAGE 2
MAYOR AND TOWN COUNCIL
SUBJECT: APPROVE AN AMENDMENT TO THE EMPLOYMENT AGREEMENT
BETWEEN THE TOWN OF LOS GATOS AND THE TOWN ATTORNEY
JANUARY 10, 2016
CONCLUSION:
Based upon the satisfactory completion of the Town Attorney's performance review in closed session,
it is recommended that the Town Attorney be awarded a 5% wage increase to the annual base salary
on his two-year anniversary date. The wage increase is consistent with adjustments provided to other
Town management salaries in October 2015. In addition, the Town Attorney's current salary is well
below other Bay Area City Attorneys and it is recommended that the Town Attorney receive a one-
time lump sum performance bonus of $5,000. The dollar amount equivalents for the wage increase
based on the current annual salary of $188,700 is $9,435.
There are two other contract provisions in the Town Attorney's Employment Agreement that are
proposed to be modified to promote transparency and open government.
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. For 2015/16, the total fiscal impact for the lump sum bonus and base
increase including pension contributions is a total of $13,174.85, as shown below:
• $5,000 lump sum performance bonus with pension: $5,000 + $1,271.50 = $6,271.50
• 5% increase to base with pension, pro -rated for 7 months: $6,903.35(for the period December
2015 through June 2016)
On an ongoing basis, the cost for a full year of the 5% increase to base including the pension rate
adjusted for 2016/17 is approximately $248,521.
The cost will be absorbed in the current fiscal year (FY 2015/16) 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 7% 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
SECOND AMENDMENT TO THE AGREEMENT FOR EMPLOYMENT
TOWN ATTORNEY
This Amendment to Town Agreement AGR13-180 is entered into this 19th day of
January, 2016, by and between the Town of Los Gatos, a municipal corporation ("Town") and
Robert Schultz ("Employee").
WHEREAS, Town and Robert Schultz executed an Agreement effective December 12,
2013 to provide Town Attorney services to the Town; and
WHEREAS, a First Amendment to the Agreement was executed on December 17, 2015
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; and
WHEREAS, in December 2015, 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 5% wage increase to the annual base salary, effective with
the Town Attorney's anniversary date of December 12, 2015 and a lump sum performance bonus
of $5,000; and
WHEREAS, in addition, the Town Council and Town Attorney desire to make changes
to the Agreement in regard to Exclusive Employment and Professional Development to be
consistent with the Town Manager Agreement and to promote transparency and open
government.
IT IS THEREFORE AGREED by the parties as follows:
Section 1(a) of the Agreement is added to read as follows:
1 (a). Exclusive Employment. During the term of this Agreement,
Attorney 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 Attorney 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
Attorney'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.
ATTACHMENT 1
Section 4 of the Agreement is amended to add the following:
4. Compensation
(a) Base Salary.
(1) The Town Attorney is awarded a 5% wage increase for an annual base
salary of $198,135.00, effective with the Town Attorney's anniversary
date of December 12, 2015.
(b) Performance Review.
(1) On the basis of an annual performance evaluation covering the second
year of employment from December 2014 to December 2015, the
Town Attorney is awarded a one-time lump sum payment of $5,000.
0) Professional Development. TOWN agrees that attendance at League of
California Cities, ABAG, CJPA, and other professional development activities is
both beneficial and expected. TOWN hereby agrees to pay the travel, lodging, and
subsistence expenses of Attorney for professional and official travel, lodging,
meetings, and occasions, and for short courses, institutes and seminars necessary
to continue the professional development of Attorney, 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 registering 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 Attorney 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.
Page 2 of 3
IN WITNESS WHEREOF, the parties have executed this Amendment to the Town
Attorney Agreement on the date written above.
ATTEST:
Shelley Neis, Clerk Administrator for
Town of Los Gatos
Page 3 of 3
TOWN OF LOS GATOS
Barbara Spector, Mayor
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Robert Schultz, Town n
rney