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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 ● 406-354-6832 www.losgatosca.gov TOWN OF LOS GATOS COUNCIL AGENDA REPORT MEETING DATE: 10/16/2018 ITEM NO: 4 DATE: OCTOBER 11, 2018 TO: MAYOR AND TOWN COUNCIL FROM: LAUREL PREVETTI, TOWN MANAGER SUBJECT: APPROVE MARKET EQUITY ADJUSTMENTS FOR THE AMERICAN FEDERATION OF STATE, COUNTY AND MUNICIPAL EMPLOYEES (AFSCME) AND AUTHORIZE SALARY AND BENEFITS BUDGET ADJUSTMENTS IN THE AMOUNT OF $50,816 FROM ESTIMATED AVAILABLE FY 2018/19 OPERATING REVENUES RECOMMENDATION: Staff recommends that the Town Council approve market equity adjustments for the American Federation of State, County and Municipal Employees (AFSCME) and authorize salary and benefits budget adjustments in the amount of $50,816 from estimated available FY 2018/19 operating revenues. BACKGROUND: In accordance with the Town’s Employer-Employee Relations Resolution No. 1974-41, representatives of the Town and AFSCME met and conferred in good faith and within the scope of representation in an effort to reach agreement for a successor Memorandum of Understanding (MOU) that was approved during the August 7, 2018 Council meeting . The MOU for the Town Employees’ Association (TEA) was subsequently approved during the August 21, 2018 Council meeting and the Police Officers’ Association MOU will be presented for approval during the October 16, 2018 Council meeting. DISCUSSION: AFSCME was the first bargaining group to reach a settlement for a successor MOU with the Town and did not receive the benefit of market equity adjustments that were negotiated in PAGE 2 OF 2 SUBJECT: APPROVE MARKET EQUITY ADJUSTMENTS FOR THE AMERICAN FEDERATION OF STATE, COUNTY AND MUNICIPAL EMPLOYEES (AFSCME) AND AUTHORIZE SALARY AND BENEFITS BUDGET ADJUSTMENTS IN THE AMOUNT OF $50,816 FROM ESTIMATED AVAILABLE FY 2018/19 OPERATING REVENUES OCTOBER 11, 2018 S:\COUNCIL REPORTS\2018\10-16-18 Closed Session\04 AFSCME Agreement\Staff Report .docx 10/11/2018 3:02 PM DISCUSSION (Continued): later agreements with TEA and POA. To maintain parity and continuation of good faith bargaining, staff surveyed the Town’s comparable agencies and recommend the following market equity adjustments outlined below and reflected in Attachment 1: Equipment Mechanic – 2.4% Lead Parks & Maintenance Worker – 3.9% Parks & Maintenance Worker – 3.9% Parks & Maintenance Worker Assistant – 3.9% Town Arborist – 3.9% CONCLUSION: The AFSCME recommended market equity adjustments are within the parameters provided to Town’s negotiators by the Town Council. It is recommended that the Salary Schedule (Attachment 1) reflecting the adjustments are approved. FISCAL IMPACT: The anticipated fiscal impact for all salary adjustments in FY 2018/2019 is $50,816. Funding to support the FY 2019/2020 ongoing cost each year will be incorporated into the proposed future year budgets for Council approval. ENVIRONMENTAL ASSESSMENT: This is not a project defined under CEQA, and no further action is required. Attachment: 1. AFSCME Salary Schedule