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6 - AFSCME Local 101.~oWN o,~ MEETING DATE: 06/21/10 ITEM NO. ,,,,~~ ; ~ "°~•~•"~' s ~ COUNCIL AGENDA REPORT OS GA'~~ DATE: June 16, 2010 TO: MAYOR AND TOWN COUNCIL FROM; GREG CARSON, TOWN MANAGER ~~ SUBJECT: ADOPT RESOLUTION APPROVING AN AMENDMENT TO THE MEMORANDUM OF UNDERSTANDING BETWEEN-THE TOWN OF LOS GATOS AND THE AMERICAN FEDERATION OF STATE, COUNTY AND MUNICIPAL EMPLOYEES (AFSCME) LOCAL 101, EXTENDING THE EXISTING MEMORANDUM OF UNDERSTANDING THROUGH JANUARY 3, 2011 WITH NO CHANGE IN SALARIES, TERMS OR CONDITIONS RECOMMENDATION: Adopt resolution approving an Amendment to the Memorandum of Understanding between the Town of Los Gatos and the American Federal of State, County and Municipal Employees (AFSCME) Local 101, extending the existing memorandum of understanding through January 3, 2011 with no change in salaries, terms or conditions and authorizing the Town Manager to execute the amendment. BACKGROUND: The term of the existing AFSCME agreement is from July 1, 2007 through June 30, 2010. In accordance with the Town's Employer-Employee Relations Resolution No. 1974-41, representatives of the Town and AFSCME have met and conferred in good faith and within the scope of representation to extend the agreement and the employees represented by AFSCME have ratified the proposal. DISCUSSION: In acknowledgement of the Town's continuing fiscal concerns, the Town and AFSCME have met and conferred in good faith to extend the current MOU for six months without any salary increases. The resulting amendment to the Memorandum of Understanding would extend the contract through .January 3, 2011. During this contract extension, all provisions of the existing contract remain PREPARED BY: RUMI PORTILLO Human Resources Reviewed by: ,Assistant Town Manager Finance Community Developm Attorney Clerk Administer Revised; 06/17/2010 2;00 PM Reformatted: 5/30/02 C;\Users\rportillo\Desktop\AFSCME Council Report for June 21, 2010.doc PAGE 2 MAYOR AND TOWN COUNCIL SUBJECT: ADOPT RESOLUTION APPROVING AN AMENDMENT TO THE. MEMORANDUM OF UNDERSTANDING BETWEEN THE TOWN OF LOS GATOS AND THE AMERICAN FEDERATION OF STATE, COUNTY AND MUNICIPAL EMPLOYEES (AFSCME) LOCAL 101, EXTENDING THE EXISTING MEMORANDUM OF UNDERSTANDING THROUGH JANUARY 3, 2011 WITH NO CHANGE IN SALARIES, TERMS OR CONDITIONS June 16, 2010 unchanged. The Town Council must adopt a resolution in order to approve this amendment to the Memorandum of Understanding. CONCLUSION: The contract extension with AFSCME. will freeze salaries at current levels while allowing the Town and AFSCME negotiators additional time.to negotiate the next contract. It is anticipated that the parties will work in collaboration to contain future costs, thus additional time is needed to conduct research, explore options and reach consensus for a new contract. FISCAL IMPACT: There is no fiscal impact to this extension. as terms of the existing contract. will not change and there would be no across-the-board increases. Attachments: 1. Resolution approving the extension to the Memorandum of Understanding between the Town of Los Gatos and the American Federation of State, County and Municipal Employees (AFSCME) Union for the period July 1, 2007 through January 3, 2011 and authorizing the Town Manager to extend the Memorandum of Understanding. 2. Tentative Agreement for AFSCME Contract Amendment RESOLUTION RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS APPROVING AN AMENDMENT TO THE MEMORANDUM OF UNDERSTANDING BETWEEN THE TOWN OF LOS GATOS AND THE AMERICAN FEDERAL OF STATE, COUNTY AND MUNICIPAL EMPLOYEES (AFSCME) LOCAL 101, EXTENDING THE EXISTING MEMORANDUM OF UNDERSTANDING THROUGH JANUARY 3, 201.1 WITH NO CHANGE 1N SALARIES, TERMS OR CONDITIONS WHEREAS, the term of the existing agreement between the Town and AFSCME is from July 1, 2007 through June 30, 2010; and WHEREAS, in acknowledgement of the Town's continuing fiscal concerns, the parties are agreeable to extend the current MOU for six months without any salary increases; and WHEREAS, in accordance with the Town's Employer-Employee Relations Resolution No. 1974-41, representatives of the Town and AFSCME have met and conferred in good faith and within the scope of representation to extend the agreement and the employees represented by AFSCME have ratified the proposal. RESOLVED, by the Town Council of the Town of Los Gatos, County of Santa Clara, State of California, that the Town of Los Gatos approving an Amendment to the Memorandum of Understanding between the Town of Los Gatos and the American Federal of State, County and Municipal Employees (AFSCME) Loca1101, extending the existing memorandum of understanding through January 3, 2011 with no change in salaries, terms or conditions and authorizing the Town Manager to execute the amendment. PASSED AND ADOPTED at a meeting of the Town Council of the Town of Los Gatos, California, held on the 21st day of June , 2010 by the following vote: COUNCIL MEMBERS: AYES: NAYS: ABSENT: ABSTAIN: SIGNED: MAYOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA ATTEST: CLERK ADMINISTRATOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA N:\PSL\RUMI\CURRENT\NEGOTIATIONS\AFSCME & TEAEXTENSIONS\COUNCIL REPORT\RESO AFSCME MOU EXTENSION JUNE 21, 2010.DOC The Town of Los Gatos and AFSCME TENTATIVE AGREEMENT The parties agree to amend the existing AFSCME contract as follows: 2. Term The term of the agreement shall be for three and a half (3 1 2j years commencing on July 1, 2007 and terminating on J~ ~~^ 2n~ ~n~ n January 3, 2011. FOR AFSCME: f Felix Mario Huerta, Jr. Business Agent FOR THE TOWN OF LOS GATOS: p /` Ru ~,iPortillo Human Resources Director Date: Ca~ / f~/~ Date: ~ ~. L~ ~) ~