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2007-086 - Resolution Approving The Memorandum Of Understanding Between The Town Of Los Gatos And Afscme For The Period July 1, 2007 Through June 30, 2010 And Authorize The Town Manager To Execute The Memorandum Of UnderstandingRESOLUTION 2007 -086 RESOLUTION APPROVING THE MEMORANDUM OF UNDERSTANDING BETWEEN THE TOWN OF LOS GATOS AND AFSCME FOR THE PERIOD JULY 1, 2007 THROUGH JUNE 30, 2010 AND AUTHORIZE THE TOWN MANAGER TO EXECUTE THE MEMORANDUM OF UNDERSTANDING WHEREAS, representatives of the Town and the American Federation of State, County and Municipal Employees ( AFSCME), in accordance with the Town's Employer - Employee Relations Resolution No. 1974 -41, have met and conferred in good faith within the scope of representation; and WHEREAS, the representatives of AFSCME bargaining team have agreed to present the proposed agreement for the Memorandum of Understanding for ratification by union members, attached hereto as Exhibit A; RESOLVED, by the Town Council of the Town of Los Gatos, County of Santa Clara, State of California, that the Town of Los Gatos approves the Memorandum of Understanding between the Town and AFSCME for the period July 1, 2007 through June 30, 2010 and the Town Manager is hereby authorized to sign the agreement on behalf of the Town. PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos, California, held on the 18 day of June, 2007 by the following vote: COUNCIL MEMBERS: AYES: Steve Glickman, Diane McNutt, Barbara Spector, Mike Wasserman, and Mayor Joe Pirzynski NAYS: None ABSENT: ABSTAIN: SIGNED: 4 MAYOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA ATTE CLER HE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA EXHIBIT A Town of Los Gatos and AFSCME Negotiativ Summary of Agreement June 12, 2007 MOU Term: 3 -Year Term from July 1, 2007. through June 30, 2010 Wage Increases: July 1 2007 3% July 1, 2008 3 %* July 1, 2009 3% Amend the existina AFSCME MOU in accordance with Tentative Agreements as signed by both parties as follows: MOU Section Title Provision 5 PEOPLE Choice Optional Payroll' Allows AFSCME employees to make voluntary contributions to the union's Deduction political contribution fund through payroll deductions 12 Automatic Deposit Update language to reference the optional direct deposit of funds. 14,15,16 Insurance Programs, Family 1) Revise the medical package to match the number of eligible dependents. Medical, and Cash Allocation 2) Establish Delta Premier as the level of Town contribution for Dental (currently Delta DPO.) 3) Changes to the Dental and Medical plans apply prospectively and do not affect current employees. 18 Uniforms Update language to specify types, quantities of uniforms, and include a replacement policy for worn/damaged items. 20c Early Start Pay Update the early start premium to 5% of the base hourly rate for start times earlier than 7:00 a.m. (currently $7.50 or $8.50 flat per day.) 20d Parks Summer Schedule Delete: no longer needed 20h Work Schedule and Holidays Change holiday compensation to double time for hours worked on an actual holiday. Current method of flat number of hours plus overtime per the existing MOU is difficult to understand and apply. 21b Overtime Compensation Discontinue the mandatory splitting of overtime hours (currently 50% comp time and 50% cash.) Allows option to choose comp time or cash. 23b Standby Compensation Discontinue assignment of vehicles for standby. Update language to reference cell phones instead of beepers. 23c Standby Training Eliminate reference to sewers, as this function has been transferred to another agency. 24 Emergency Work Rewrite for clarification and provide comp time at the overtime rate for missed meal periods and breaks during emergency work assignments. 26 Vacation Checks Delete: no longer needed. 28d Sick Leave Conversion at Eliminate caps on sick leave hours for conversion to the Town's retiree Retirement medical trust fund, consistent with TEA and Management 28e Retirement Health Savings Plan Update timeline to establish the Retirement Health Savings Plan (VEBA) within the first year of the agreement. 32 Catastrophic Time Bank Eliminate erroneous reference to holiday hours. 33 Bereavement Leave Update language to include registered domestic partner. 37 Leave Without Pay Update language to match actual practice Town Manager or designee.) 46 Seniority Eliminate outdated reference to CETA time applied to seniority for promotions. 51 Safety Delete reference to number of employees on a median (include in departmental procedures rather than in MOU. 53 Workers' Compensation Move section to follow Health Benefits 55 Re- opener re WV Sanitation Delete: no longer needed as the sewer transfer is complete. New Safety Shoes Formalize current practice of providing safety shoes for all AFSCME employees and include a replacement policy. New Weekend Work Crews Establish volunteer overtime assignments for AFSCME employees to supervise County Weekend Work Crews. Sideletter Personal Time Off (PTO) In year 2 of the agreement, combine vacation, sick, comp and personal leave Agreement into a personal leave bank, with no change in the accrual rates. Allow employees to transfer accrued hours to a Health Savings Account. Sideletter Retirement Benefits On January 1, 2009 or sooner: Agreement . Change the vesting schedule for employees to be eligible for.retiree medical from 5 years to fifteen years. In accordance with CalPERS law, this change is applied to new employees and does not affect vesting for current employees. . Change the CalPERS retirement formula from 2% at age 55 to 2.5% at 55. To maintain this change as a cost - neutral benefit, employees will pay an additional 1% of salary each year in employee contributions to CalPERS and will forgo the 3% increase scheduled for July 1, 2008. . The formula change must also be adopted by all non -sworn employee groups in a cost - neutral manner. ■ Prior to adoption, CalPERS will update the Town's actuarial report and adjustments will be made to the cost offsets per the sideletter agreement. * The 3% Increase scheduled for July 1, 2008 will be delayed pending the implementation of a change in the retirement formula and vesting schedule for all non -sworn employee groups. If the retirement changes are not adopted by January 1, 2009 for all non -sworn groups, the 3% salary increase will be implemented for AFSCME employees retroactive to July 1, 2008.