Staff Report
PREPARED BY: LISA VELASCO
Human Resources Director
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, and Finance Director
110 E. Main Street Los Gatos, CA 95030 ● 408-354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 01/16/2018
ITEM NO: 19
DATE: JANUARY 10, 2018
TO: MAYOR AND TOWN COUNCIL
FROM: LISA VELASCO, HUMAN RESOURCES DIRECTOR
SUBJECT: APPROVE AMENDMENTS TO THE EMPLOYMENT AGREEMENTS BETWEEN
THE TOWN OF LOS GATOS AND THE TOWN MANAGER AND THE TOWN OF
LOS GATOS AND THE TOWN ATTORNEY
RECOMMENDATION:
Approve amendments to the Employment Agreements (Attachments 1 and 2) between the
Town of Los Gatos and the Town Manager and the Town of Los Gatos and the Town Attorney.
BACKGROUND:
As appointees of the Town Council, the Town Manager and Town Attorney are employed under
Employment Agreements specifying the terms and conditions of employment. The terms and
conditions of employment include items such as base pay, basic and optional ben efits, covered
expenses, parameters for annual performance review, and conditions for
termination/severability. Senate Bill 1436 requires an oral summary at a Council meeting of a
recommendation related to modifying the salary, salary schedule, or fringe benefits of any
person employed under an Employment Agreement with a local agency.
DISCUSSION:
As outlined in the respective Employment Agreements, the Town Manager’s and Town
Attorney’s performance and compensation is reviewed on an annual basis in conjunction with a
performance evaluation. The review of the Employment Agreement is conducted to ensure
PAGE 2 OF 2
SUBJECT: APPROVE AN AMENDMENT TO THE EMPLOYMENT AGREEMENTS BETWEEN
THE TOWN OF LOS GATOS AND THE TOWN MANAGER AND THE TOWN OF LOS
GATOS AND THE TOWN ATTORNEY
JANUARY 16, 2018
S:\COUNCIL REPORTS\2018\01-16-18\19 - TM & TA Agreement Amendments\Staff Report FINAL.docx 1/12/2018 9:40 AM LV
DISCUSSION (cont’d):
legal compliance and to provide for any adjustments in the terms and conditions of
employment.
In accordance with the agreement terms for Town Manager Laurel Prevetti, the Town Council
completed the evaluation for her second year in the position, from September 2016 through
September 2017. Under similar terms, the Town Council completed the evaluation for Town
Attorney Robert Schultz for his fourth year in the position, from December 2016 through
December 2017.
CONCLUSION:
Based upon the satisfactory completion of the performance reviews in closed session, it is
recommended that the Town Manager’s annual base salary increase to $220,000 and the Town
Attorney’s annual base salary increase to $215,000 both effective January 16, 2018. In
addition, it is recommended that the Town Attorney receive a one-time lump sum performance
bonus of $3,000.
FISCAL IMPACT:
Funding to support the Town Manager and Town Attorney Employment Agreements is
authorized in the annual budget each fiscal year along with all other Town employee
compensation and benefits.
The additional fiscal impact for the remainder of 2017/2018 is $12,099. The total salary and
benefits cost for a full year is approximately $650,965.
The increased base salary will be included in the base budget for future fiscal years. The total
cost impact will be absorbed in the Town’s existing operating budget.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
Attachments:
1. Amendment to the Employment Agreement – Town Manager
2. Amendment to the Employment Agreement – Town Attorney
3. Salary Schedule Town Council and Management