2011062011 - MOU TEA - AFSCME - POA - Salary ScheduleDATE:
TO:
FROM:
COUNCIL AGENDA REPORT
June 14, 2011
MAYOR AND TOWN COUNCIL
GREG LARSON, TOWN MANAGER
MEETING DATE: 06/20/2011
ITEM NO:
SUBJECT: APPROVE THE MEMORANDUM OF UNDERSTANDING BETWEEN THE TOWN OF
LOS GATOS AND THE TOWN EMPLOYEES' ASSOCIATION RETROACTIVE TO
NOVEMBER 1, 2010 AND EXTENDING THROUGH JUNE 30, 2012 AND AUTHORIZE
THE TOWN MANAGER TO EXECUTE THE MEMORANDUM
RECOMMENDATION:
Approve the Memorandum of Understanding between the Town of Los Gatos and the Town Employees'
Association (TEA) retroactive to November 1, 2010 and extending through June 30, 2012 and authorize the
Town Manager to execute the memorandum.
DISCUSSION:
In accordance with the Town's Employer -Employee Relations Resolution No. 1974-41, representatives of the
Town and TEA have met and conferred in good faith and within the scope of representation. Negotiating teams
for the Town and TEA met for 14 negotiating sessions beginning in August 2010. The parties reached a
tentative agreement in April 2011 and the employees represented by TEA have ratified the proposed agreement
in accordance with TEA bylaws. A summary of the changes reached by agreement is attached. Adoption of the
proposed Memorandum of Understanding is recommended.
The proposed Memorandum will be retroactive to November 1, 2010. and extend through June 30, 2012. There
are no wage increases scheduled for the term of the agreement and the agreement includes the adoption of a 2-
tier pension system for new employees hired after January 2012.
FISCAL IMPACT:
This agreement does not increase costs to the Town and will provide future savings as a result of the 2-tier
pension formula and additional medical cost sharing for dependent coverage. Projected savings will not be
known until the Ca1PERS actuarial reports are adjusted to incorporate the 2-tier pension formula.
ATTACHMENTS:
Tentative Agreement between the Town and the Town Employees' Association
PREPARED BY: RUMI PORTILLO
Human Resources D
C:\Users\rportillo\Desktop\TEA Council Memo 06-20-1 I.doc
Reviewed by: Assistant Town Manager
Clerk Administrator Finance
Town Attorney
mmunity Development
T.E.A. and Town of Los Gatos
TENTATIVE AGREEMENT
Final Package Proposal for Ratification
As of April 12, 2011
SUMMARY OF CHANGES
(Specific MOU Language Attached)
TERM: November 1, 2010 through June 30, 2012
SALARY: Salary schedule will be reflected on Appendix A of the MOU; no salary increases are scheduled
for the term of the agreement.
TUITION REIMBURSEMENT PROGRAM: Housekeeping/clean-up language to waive repayment under
certain circumstances (i.e., layoff, disability.)
PERS (TWO TIER RETIREMENT): Employees hired on or after January 1, 2012 will be provided 2%@60,
36-month Final Salary, optional pre -retirement death benefit is eliminated.
PERSONAL LEAVE: One-time bonus of 4 hours of Personal Leave to be used by December 31, 2011.
MEDICAL BENEFITS: Sections 16 and 17 re -written for clarity and to reflect the following changes that
will take effect January 1, 2012:
1) New Hires -- Employees hired on or after January 1, 2012, Town will pay Kaiser North based on
level of participation (Employee, Employee Plus One, Employee Plus Two or More). Town will
pay the full cost of Kaiser Employee Only. For dependents, Town will pay 90% of the difference
between Kaiser Employee Only and Kaiser Dual or Kaiser Family North.
2) Current Employees "Grandfather/Maintenance" Clause -- Employees hired prior to January 1,
2012, Town will pay Kaiser North Employee Only and 90% of the difference between Kaiser
Employee Only and Kaiser Family, regardless of family status. An employee may switch between
cash allocation and family medical insurance up to Kaiser Family North.
3) In accordance with a prior Sideletter Agreement, Town will establish a Cafeteria Plan structure
in compliance with Internal Revenue Code Section 125, for the purpose of tax benefits and plan
flexibility. The Cafeteria Plan will have no additional cost for T.E.A. employees. Informational
meetings and materials will be provided prior to any changes.
FLSA EXEMPT EMPLOYEES: Associate Planner and Senior Planner are recognized as FLSA "exempt"
classes. The classes will not accrue overtime, are eligible for flexible schedules and will track absences of
more than half of a shift.
PRIOR SIDELETTER AGREEMENTS INCORPORATED:
1) Agency Shop
2) Furlough Sideletter Agreement
3) Holiday Closure Sideletter Agreement
4) PERS 2.5% at 55 effective July 1, 2008
This agreement is considered tentative and shall not be considered final or binding until ratified by the
membership and approved by the Town Council. This document sets forth the full agreements of the
parties reached during these negotiations. Anything not included in this document is not part of the
Tentative Agreement.
COUNCIL AGENDA REPORT
DATE: June 16, 2011
TO: MAYOR AND TOWN COUNCIL
FROM: GREG LARSON, TOWN MANAGER
SUBJECT:
MEETING DATE: 06/20/11
ITEM NO. )
APPROVE 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 THROUGH AUGUST
31, 2011 WITH NO CHANGE IN SALARIES, TERMS OR CONDITIONS AND AUTHORIZE
THE TOWN MANAGER TO EXECUTE THE AMENDMENT
RECOMMENDATION:
Approve an extension 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 through August 31, 2011 with no change in
salaries, terms or conditions and authorize the Town Manager to execute the amendment.
BACKGROUND:
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. The parties have reached
agreement to extend the existing Memorandum with no change in salaries, terms or conditions through August 31, 2011.
DISCUSSION:
AFSCME is undergoing a re -organization and a business agent is not available to engage in negotiations with the Town
until later this summer. For this reason, AFSCME has requested that the Memorandum be extended through August 31,
2011, to allow additional time for the parties to meet and confer. AFSCME has been notified that the Town intends to
discuss two-tier retirement and medical cost -sharing in the scope of bargaining.
CONCLUSION:
The contract extension with AFSCME will maintain salaries and benefits at current levels while allowing the Town and
AFSCME negotiators additional time to negotiate the next contract.
FISCAL IMPACT:
There is no fiscal impact to this extension as terms of the existing contract will not change.
PREPARED BY: RUMI PORTILLO
Human Resources Direc
Reviewed by: _ Assistant Town Manager ( Town Attorney Clerk Administer
Finance Community Development Revised: 06/16/2011 3:12 PM
Reformatted: 5/30/02
C:\Users\rportillo\Desktop\AFSCME Council Report June 20 2011.doc
COUNCIL AGENDA REPORT
DATE: June 16, 2011
TO: MAYOR AND TOWN COUNCIL
FROM: GREG LARSON, TOWN MANAGER
SUBJECT:
MEETING DATE: 06/20/11
ITEM NO. l f e
APPROVE AN AMENDMENT TO THE MEMORANDUM OF UNDERSTANDING
BETWEEN THE TOWN OF LOS GATOS AND THE LOS GATOS POLICE OFFICERS'
ASSOCIATION EXTENDING THROUGH JUNE 30, 2013 AND AUTHORIZE THE
TOWN MANAGER TO EXECUTE THE AMENDMENT
RECOMMENDATION:
Approve an amendment to the Memorandum of Understanding between the Town of Los Gatos and the Los
Gatos Police Officers' Association extending through June 30, 2013 and authorize the Town Manager to
execute the amendment. '
BACKGROUND:
In accordance with the Town's Employer -Employee Relations Resolution No. 1974-41, representatives of the
Town and the Los Gatos Police Officers' Association (LGPOA) have met and conferred in good faith and
within the scope of representation. The parties have reached agreement to amend the existing Memorandum of
Understanding and the employees represented by POA have ratified the proposed amendment.
DISCUSSION:
In 2007 a Memorandum of Understanding was adopted for the LGPOA to set forth the terms and conditions of
employment. The Town is contractually obligated to provide the salary and benefits as agreed in the
Memorandum. The scheduled increases in the adopted agreement were as follows: 4% January and July 2008;
4% July 2009 and 4% July 2010. Due to negative economic conditions, the Town and POA adopted an
amendment in 2009 to spread the increase for 2009 and 2010 over an additional year. Without this amendment,
it would have been necessary to impose additional furloughs or service reductions.
POA is again agreeing to amend the agreement with the Town to assist with salary savings. The proposed
amendment will defer the 4% increase due July 1, 2010 to 2% in January 2012 and 2% in January 2013.
PREPARED BY: RUMI PORTILLO
Human Resources Di ec t1,ti'�(
C:\Users\rportillo\Desktop\POA Council Report for June 16 2011.doe V
Reviewed by: VSiAssistant Town Manager Town Attorney Clerk Administer
Finance Community Development Revised: 06/16/2011 10:00 AM
Reformatted: 5/30/02
C:\Users\rportillo\Desktop\POA Council Report for June 16 2011.doc
PAGE 2
MAYOR AND TOWN COUNCIL
SUBJECT: APPROVE AN AMENDMENT TO THE MEMORANDUM OF UNDERSTANDING BETWEEN
THE TOWN OF LOS GATOS AND THE LOS GATOS POLICE OFFICERS' ASSOCIATION
EXTENDING THROUGH NNE 30, 2013 AND AUTHORIZE THE TOWN MANAGER TO
EXECUTE TI-IE AMENDMENT
June 16, 2011
By restructuring the contract in this manner, the Town will reduce payroll costs sufficient to avoid imposed
furloughs for FY 2011/12 and FY 2012/13. Under this amendment, all other existing terms and conditions will
remain status quo through June 30, 2013. A summary of the amendments is as follows:
Amendments to POA Memorandum of Understanding
Current (Amendment 1)
Proposed (Amendment 2)
2% July 1, 2009
Increase provided
2% July 1,2010
Increase provided
4% July 1, 2011
2% January 1, 2012
Expiration June 30, 2012
2% January 1, 2013
Expiration June 30, 2013
CONCLUSION:
The POA and Town negotiators worked diligently to develop this proposed amendment to reduce payroll costs
and preserve services to the Town. The POA membership has also showed its support by ratifying the
amendment in a membership vote. Thus, the attached resolution approving the amendment to the Memorandum
of Understanding for POA-represented positions is recommended for adoption.
FISCAL IMPACT:
The amendment will reduce Police total payroll (including CalPERS and benefits) from $7.14M to $7.06M for
FY 2011/12, for a savings of $80K. The savings for FY 2011/12 are assumed in the adopted budget. For the
following year, funding to support POA salaries will be included in the proposed annual budget for FY 2012/13.
COUNCIL AGENDA REPORT
DATE: June 16, 2011
TO: MAYOR AND TOWN COUNCIL
FROM: GREG LARSON, TOWN MANAGER
SUBJECT:
MEETING DATE: 06/20/2011
ITEM NO: I --�
APPROVE THE SALARY SCHEDULE FOR MANAGEMENT EFFECTIVE JULY 1, 2011,
REFLECTING UPDATED TITLES, POSITION ELIMINATIONS AND A CONTINUED FREEZE ON
COST OF LIVING INCREASES FOR FY 2011/12
RECOMMENDATION:
Approve the Salary Schedule for Management effective July 1, 2011, reflecting updated titles, position eliminations and a
continued freeze on cost of living increases for FY 2011/12.
DISCUSSION:
Management employees did not receive cost of living increases for FY 2008/09, 2009/10 and 2010/11, and the adopted
budget for FY 2011/12 does not include a wage increase for management employees. The adopted budget includes
unpaid furloughs of 40-hours which will be applied to management employees, equivalent to a 2% reduction in pay.
Management employees have also been informed that effective January 2012, the Town intends to implement medical
cost -sharing for all management employees with dependents and a 2-tier pension plan for new hires. Additional
information regarding the medical premium and pension changes will be addressed later this year for Council action.
In accordance with the Town's policy that requires periodic updates of the compensation plan, the attached Management
Salary Schedule is provided for Council adoption. The attachment incorporates changes to the management pay schedule
including eliminated, restructured and/or retitled positions resulting from re -organizations and budget reductions. As a
result of the unpaid furloughs for FY 2011/12, management employees will receive 2% less in base than reflected on the
attached pay schedule.
All job titles and salary schedules are posted on the Town's website. The Town also reports salaries annually for each
employee by name and actual earnings to the State Controller for publication on the State Controller's website for the
purpose of public disclosure.
FISCAL IMPACT:
All management salaries are included in the FY 2011/12 Adopted Budget and will be included iu future proposed budgets.
ATTACHMENTS:
Town of Los Gatos Salary Schedule for Management
PREPARED BY: RUMI PORTILLO
Human Resources Dire
N:\PSL\Current\StafflRumi\Current\Mgmt & Unrep Salaries\Effeetive 2011\COUNCIL REPORT\Mgmt Comp Council Memo 06-20-11.doc
n
Reviewed by: Assistant Town Manager
Clerk Administrator Finance
Town Attorney
mmunity Development
Town of Los Gatos
SALARY SCHEDULE FOR MANAGEMENT
updated as of July 2011
MANAGEMENT
Top Base Salary (Annual)
Chief of Police
$173,004
Police Captain (2 Positions)*
$161,300
Assistant Town Manager
$160,373
Director of Community Development
$160,373
Director of Finance & Admin Services
$160,373
Director of Parks & Public Works
$160,373
Asst PPW Director/Town Engineer
$151,070
Deputy Town Manager
$143,876
Human Resources Director
$143,876
Library Director -
$143,876
Building Official
$133,503
MIS Manager
$133,503
Planning Manager
$133,503
Superintendent (2 Positions)
$133,503
Assistant Director of Finance
$126,800
Capital Projects Mgr (Limited Term)
$113,055
Deputy Town Attorney**
$113,055
Economic Vitality Manager
$113,055
Police Admin Services Manager
$113,055
Clerk Administrator**
$98,500
Library Manager (2 Positions)
'
$98,500
Community Outreach Coordinator
$85,824
For FY 2011/12 Management Employees are subject to 40 hours of unpaid furlough. The
unpaid furlough will reduce base salaries by approximately 2%.
*Captains positions include 7.5% POST pay in Annual Salary
**Half-time positions are pro -rated to 50% of Annual Salary
ELIMINATED POSITIONS:
Assistant Library Director eliminated FY 2010/11
Assistant Community Development Director eliminated FY 2010/11
Community Services Director eliminated FY 2011/12