Addendum
PREPARED BY: ARN ANDREWS
Assistant Town Manager
Reviewed by: Town Manager, Town Attorney, Finance Director, and Human Resources Director
110 E. Main Street Los Gatos, CA 95030 ● 408-354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
TOWN COUNCIL REPORT
MEETING DATE: 10/16/2018
ITEM NO: 5
ADDENDUM
DATE: OCTOBER 15, 2018
TO: MAYOR AND TOWN COUNCIL
FROM: LAUREL PREVETTI, TOWN MANAGER
SUBJECT: A. APPROVE A LABOR AGREEMENT BETWEEN THE TOWN OF LOS GATOS
AND THE POLICE OFFICERS ASSOCIATION AND AUTHORIZE THE TOWN
MANAGER TO EXECUTE THE MEMORANDUM OF UNDERSTANDING
B. AUTHORIZE SALARY AND BENEFITS BUDGET ADJUSTMENTS IN THE
AMOUNT OF $513,728 FROM ESTIMATED AVAILABLE FY 2018/19
OPERATING REVENUES
REMARKS:
Public comments received between 11:01 a.m. Thursday, October 11, 2018 to 11:00 a.m.
Monday, October 15, 2018 are included as Attachment 2.
In addition, a Council Member requested staff responses to the public comments, specifically:
“Can you confirm whether the total salary adjustments for Fiscal Year (FY) 2018/19 are
$1,537,904? What is the total FY 2018/19 total salary and benefit expenditure?”
The staff response is provided below:
The Adopted FY 2018/19 Operating Budget is a guide for the Town to establish projected
funding for its annual operations. Over the course of the year , staff monitors the progress of
those expected revenues and expenditures in relation to the Adopted Budget. Generally during
the February timeframe, staff returns to Council with a Mid-Year Budget Report which covers
the first six months of the fiscal year. The report provides analysis and recommendations
related to the current year’s Adopted Budget revenues and expenditures and the projected
financial condition of all Town funds. As illustrated in the table on the following page, the total
estimated budget increases for negotiated Memoranda of Understanding (MOUs) and
PAGE 2 OF 3
SUBJECT: A. APPROVE A LABOR AGREEMENT BETWEEN THE TOWN OF LOS GATOS
AND THE POLICE OFFICERS ASSOCIATION AND AUTHORIZE THE TOWN
MANAGER TO EXECUTE THE MEMORANDUM OF UNDERSTANDING
B. AUTHORIZE SALARY AND BENEFITS BUDGET ADJUSTMENTS IN THE
AMOUNT OF $513,728 FROM ESTIMATED AVAILABLE FY 2018/19
OPERATING REVENUES
OCTOBER 15, 2018
S:\COUNCIL REPORTS\2018\10-16-18 Closed Session\05 POA Agreement\Addendum.docx 10/15/2018 4:14 PM
REMARKS (continued):
recommendations for Management and Confidential are $1,537,904. The $1,537,904 is
inclusive of estimated benefit related increases, including pension obligations.
Town Negotiated MOUs and Management/Confidential
AFSCME TEA ASFCME
Management &
Confidential
POA Total
$53,417 $440,106 $50,816 $479,837 $513,728 $1,537,904
The budget increases would result in adjusted estimated salary and benefits of $28,884,998
versus the Adopted Budget of $27,347,094. The original 2018/19 Adopted Budget salary and
benefits equated to a 1.2% increase over the 2017/18 Adopted Budget. The adjusted budget
for FY 18/19 salary and benefits would equate to a 6.95% increase over the 2017/18 Adopted
Budget as illustrated in the table below.
FY 2018/19 Operating Budget
Expenditures 2017/18
Adopted (A)
2018/19
Adopted (B)
2018/19
Adjusted (C)
Percent
Change
(A to B)
Percent
Change
(A to C)
Salary and
Benefits
$27,005,920 $27,347,094 $28,884,998 1.26% 6.95%
During the Mid-Year Budget process, staff will determine if any additional mid-year
recommended adjustments are necessary based on the status of revenues and expenditures at
that time.
It is important to note that the aforementioned salary and benefit adjustments were
recommended in conjunction with the elimination of the Town ’s retiree healthcare benefit and
the sick leave cash out benefit prospectively. The estimated salary and benefit adjustments do
not currently take into account the significant savings expected to accrue from those employee
concessions.
PAGE 3 OF 3
SUBJECT: A. APPROVE A LABOR AGREEMENT BETWEEN THE TOWN OF LOS GATOS
AND THE POLICE OFFICERS ASSOCIATION AND AUTHORIZE THE TOWN
MANAGER TO EXECUTE THE MEMORANDUM OF UNDERSTANDING
B. AUTHORIZE SALARY AND BENEFITS BUDGET ADJUSTMENTS IN THE
AMOUNT OF $513,728 FROM ESTIMATED AVAILABLE FY 2018/19
OPERATING REVENUES
OCTOBER 15, 2018
S:\COUNCIL REPORTS\2018\10-16-18 Closed Session\05 POA Agreement\Addendum.docx 10/15/2018 4:14 PM
Attachment previously distributed with October 11, 2018 Staff Report:
1. October 1, 2018 through September 30, 2021 POA Memorandum of Understanding showing
track changes
Attachment received with this Addendum:
2. Public comment received between 11:01 a.m. Thursday, October 11, 2018 and 11:00 a.m.
Monday, October 15, 2018.