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: 6
DATE: OCTOBER 11, 2018
TO: MAYOR AND TOWN COUNCIL
FROM: LAUREL PREVETTI, TOWN MANAGER
SUBJECT: APPROVE THE REVISED CLASSIFICATION PLANS FOR MANAGEMENT AND
CONFIDENTIAL EMPLOYEES AND AUTHORIZE SALARY AND BENEFITS
BUDGET ADJUSTMENTS IN THE AMOUNT OF $479,837 FROM ESTIMATED
AVAILABLE FY 2018/19 OPERATING REVENUES FOR THE MANAGEMENT
AND CONFIDENTIAL UNITS
RECOMMENDATION:
Staff recommends that the Town Council approve the revised classification plans for
Management (Attachment 1) and Confidential (Attachment 2) employees and authorize salary
and benefits budget adjustments in the amount of $479,837 from estimated available FY
2018/19 operating revenues for the Management and Confidential units.
BACKGROUND:
In accordance with the Town’s Employer-Employee Relations Resolution No. 1974-41,
representatives of the Town and its three bargaining units [American Federation of State
County and Municipal Employees (AFSCME), Town Employees Association (TEA), and Police
Officers Association (POA)] met and conferred separately in good faith and within the scope of
representation in an effort to reach agreement s for successor Memoranda of Understanding
(MOU). The MOU are labor agreements that identify specific terms and conditions of
employment applicable to the employees represented by those agreements. The MOU for
AFSCME was approved during the August 7, 2018 Council meeting. The MOU for TEA was
approved during the August 21, 2018 Council meeting and the Police Officers’ Association MOU
is being presented for approval at the October 16, 2018 Council meeting.
PAGE 2 OF 3
SUBJECT: APPROVE THE REVISED CLASSIFICATION PLANS FOR MANAGEMENT AND
CONFIDENTIAL EMPLOYEES AND AUTHORIZE SALARY AND BENEFITS
BUDGET ADJUSTMENTS IN THE AMOUNT OF $479,837 FROM ESTIMATED
AVAILABLE FY 2018/19 OPERATING REVENUES FOR THE MANAGEMENT AND
CONFIDENTIAL UNITS
DATE: OCTOBER 11, 2018
S:\COUNCIL REPORTS\2018\10-16-18 Closed Session\06 Management - Confidential Agreement\Staff Report.docx 10/11/2018 3:23 PM
DISCUSSION:
The Management and Confidential units are at -will, unrepresented units of the Town. Now
that negotiations have concluded with the Town’s three bargaining groups, it is timely to
consider benefit changes and compensation for the Town’s unrepresented employees.
Consistent with the benefit changes for POA, TEA, and AFSCME, the benefit changes for
Management and Confidential groups include the elimination of retiree health for all new
employees and the elimination of sick leave cash out for all new employees hired after the
Council’s approval of this item.
For FY 2018/19 only, the proposed package also contains similar elements to the represented
bargaining groups, including a 2.5% across-the-board increase, a 1.5% non-PERSable one-time
payment, and market equity adjustments. For most Management and Confidential
classifications, the equity adjustment is 2.5%. Classifications with current salaries below new
salary ranges or those impacted by compaction will receive additional equity adjustments to
alleviate those issues. Attachments 1 and 2 contain the proposed classification plan and salary
schedule updates for both Management and Confidential groups. Unlike the Town’s three
bargaining groups who negotiate for multi-year contracts, the Management and Confidential
groups are at the discretion of the Town Manager, with the consent of the Council, based on
budget considerations and other factors at that time.
In terms of next steps, the Town staff is working on updates to the Management and
Confidential Compensation Plans, which describe the employment conditions, Town benefits,
and other issues. The updates would clarify existing language, delete obsolete language, and
ensure compliance related to the Town’s contract for retirement and medical benefits provided
under the California Public Employees’ Retirement System (CalPERS) and PEMHCA. The revised
Compensation Plans will be scheduled for Council consideration at a future date.
CONCLUSION:
The Management and Confidential group recommendations have been prepared within the
parameters consistent with Town Council direction and provided to Town’s three bargaining
groups.
PAGE 3 OF 3
SUBJECT: APPROVE THE REVISED CLASSIFICATION PLANS FOR MANAGEMENT AND
CONFIDENTIAL EMPLOYEES AND AUTHORIZE SALARY AND BENEFITS
BUDGET ADJUSTMENTS IN THE AMOUNT OF $479,837 FROM ESTIMATED
AVAILABLE FY 2018/19 OPERATING REVENUES FOR THE MANAGEMENT AND
CONFIDENTIAL UNITS
DATE: OCTOBER 11, 2018
S:\COUNCIL REPORTS\2018\10-16-18 Closed Session\06 Management - Confidential Agreement\Staff Report.docx 10/11/2018 3:23 PM
FISCAL IMPACT:
The anticipated fiscal impact for all salary adjustments in FY 2018/2019 is $479,837. The
requested budget adjustments in the amount of $479,837 from estimated available FY 2018/19
operating revenues will provide funding for the additional salary and benefit cost for FY
2018/19. 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.
Attachments:
1. Management Salary Schedule
2. Confidential Employees Salary Schedule