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12 Staff Report.AFSCME Street Sweeping Side Letter with attachments PREPARED BY: Katy Nomura Assistant Town Manager 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: 05/07/2024 DATE: April 26, 2024 TO: Mayor and Town Council FROM: Laurel Prevetti, Town Manager SUBJECT: Approve and Authorize the Town Manager to Execute a Side Letter of Agreement Between the Town of Los Gatos and the American Federation of State, County, and Municipal Employees (AFSCME) to Contract Out Street Sweeping Services Effective July 1, 2024 RECOMMENDATION: Approve and authorize the Town Manager to execute a Side Letter of Agreement between the Town of Los Gatos and the American Federation of State, County, and Municipal Employees (AFSCME) to contract out street sweeping services effective July 1, 2024 BACKGROUND: The Town of Los Gatos Department of Parks and Public Works conducts street sweeping using staff resources and Town-owned equipment. Sweeping is completed on all roads once each month and weekly in the downtown area. The West Valley Solid Waste Management Authority (WVSWMA) Joint Powers Agency (JPA) has negotiated a new contract with its waste hauling contractor, West Valley Collection and Recycling (WVC&R). The Town is a member of this JPA. The new contract begins July 1, 2024. The Town has the opportunity to have street sweeping performed by a third-party contactor that is managed by and paid for through WVC&R. The three other member agencies of the WVSWMA currently contract their street sweeping operations and would continue to do so under the new WVC&R contract. Contracting street sweeping services is not expected to change the rate that residents pay for trash collection services.  PAGE 2 OF 2 SUBJECT: Approve a Side Letter of Agreement Between the Town of Los Gatos and the American Federation of State, County, and Municipal Employees (AFSCME) DATE: April 26, 2024 DISCUSSION: Staff believes contracting out street sweeping services would be beneficial operationally, enhance pollution prevention efforts, reduce operating and maintenance costs of the Town’s street sweeper, and bring the Town into alignment with other WVSWMA member agencies. The Town met and conferred with AFSCME to develop the proposed Side Letter (Attachment 1). The Side Letter allows for street sweeping to be contracted out effective July 1, 2024, with no reduction in workforce. This would allow staff time to be reallocated to other pressing needs. Employees may still be directed to perform street sweeping as needed. In addition, the Side Letter suspends the Work Furlough Program, with the Town being able to restart the program to meet operational needs at its discretion. If the Work Furlough Program is restarted at a future date, the Side Letter also increases the premium pay for Maintenance Workers assigned to oversee the Work Furlough Program from 5% to 8%. CONCLUSION: Staff has met its obligation to meet and confer with AFSCME on the proposed Side Letter. AFSCME has indicated support for the proposal. Therefore, it is recommended that the Side Letter of Agreement be approved, and the Town Manager be authorized to execute the Side Letter. COORDINATION: The preparation of this report was coordinated with the Human Resources Department, Parks and Public Works Department, Finance Department, Town Attorney’s Office, and Town Manager’s Office. FISCAL IMPACT: The operational costs of in-house street sweeping were fully offset by revenue received from WVSWMA and the costs of contracting out would continue to be covered by WVSWMA. There is no budget adjustment required to implement the Side Letter as the Work Furlough Program is currently suspended. If the Work Furlough Program is restarted, any costs associated with the increased premium pay would either be absorbed in the operating budget or a budget adjustment would be requested as needed. ENVIRONMENTAL ASSESSMENT: This is not a project defined under CEQA, and no further action is required. Attachment: 1. Side Letter of Agreement Between Town of Los Gatos and AFSCME ATTACHMENT 1 SIDE LETTER OF AGREEMENT BETWEEN THE TOWN OF LOS GATOS AND THE AMERICAN FEDERATION OF STATE, COUNTY, AND MUNICIPAL EMPLOYEES (AFSCME) The Town of Los Gatos (Town) and the American Federation of State, County, and Municipal Employees (AFSCME) have met and conferred in good faith and hereby agree to the following: 1. Effective July 1, 2024, the Town will contract out street sweeping services to help improve garbage collection coordination and operations by aligning the Town with other West Valley Solid Waste Management Authority (WVSWMA) agencies and enhance pollution prevention efforts. This action will not result in a reduction in the workforce. At the Town’s discretion, employees may be directed to perform street sweeping duties as needed. 2. Effective the first full pay period after Council approval of this side letter, the premium pay for Maintenance Workers for supervision duties when assigned to the Work Furlough Program will increase from 5% to 8%, regardless of the number of Work Furlough Program staff supervised. All other provisions of Section 25: Work Furlough Program will remain in effect without changes. 3. Suspend the Work Furlough Program. The Town, at its own discretion, can restart the Work Furlough Program to meet operational needs. The terms of this Side Letter Agreement shall become effective when signed by all parties below and upon Town Council approval. This Side Letter Agreement shall be incorporated into the current or successor Memorandum of Agreement of the bargaining unit. FOR AFSCME: FOR THE TOWN OF LOS GATOS: ______________________________ ________________________________ Carol McEwan Date Laurel Prevetti Date Union Representative Town Manager AFSCME Council 57 ______________________________ Danny Murdock Date Maintenance Assistant APPROVED AS TO FORM: ________________________________ Gabrielle Whelan Date Town Attorney