Public comment received 1101 am to 5 pm May 5Public comment received 11:01 a.m. to 5:00 p.m. for Item #8:
From: Steve/Bess Zientek
Sent: Tuesday, May 05, 2020 12:05 PM
To: Council <Council@losgatosca.gov>
Subject: $435,000 Consent item on Council Agenda of 5/5//2020
Dear Council Members:
Steve and I are concerned about the "consent" item on tonight's agenda that would fund salary
increases for Town employees/Management effective 2021.
Not only is this a significant expenditure, but to approve it without public input and discussion
by the Council seems premature at best. Given these uncertain economic times, especially the
expected decrease in Town revenue as a result of the current SIP order, debate on the item is
warranted . At the very least, having the Town Budget 2020-2021 in hand for discussions seems
to be a minimal requirement prior to approval of salary increases.
Thank you for your consideration of this request.
Bess and Steve Zientek
From: Jbestill
Sent: Tuesday, May 05, 2020 11:03 AM
To: Council <Council@losgatosca.gov>; jvannada@gmail.com
Subject: Prposed consent item for pay increases
I respectfully request that the consent item for the proposed pay increases be removed from
the consent calendar and receive an open discussion of the Town Council. these increases
should not be reviewed until there is a proposed budget for next year and they should be
consolidated with a review of future increases for the police department.
John Estill
From: rwrinehart@comcast.net <rwrinehart@comcast.net>
Sent: Tuesday, May 05, 2020 11:01 AM
To: Council <Council@losgatosca.gov>
Subject: Salary increases
Dear council members,
Please explain why these proposals are being deliberated in secret and a year early. This
doesn’t sound like good Los Gatos government.
Robert Rinehart
From: Mark Kennedy
Date: May 5, 2020 at 11:43:42 AM PDT
To: Marcia Jensen <MJensen@losgatosca.gov>, BSpector <BSpector@losgatosca.gov>, Rob
Rennie <RRennie@losgatosca.gov>
Subject: Spending increase
Hello Town Council members,
I want to express my support for the letter in the following link:
https://lg-ca.com/given-los-gatos-and-worldwide-economic-circumstances-is-this-the-time-to-
increase-town-expenses-by-1000000/
“We encourage a robust discussion by the Council on the merits of the Staff’s
recommendation.”
While we follow state and county covid guidelines, with barely a whimper, and certainly no
“science and data” (at least here locally) to justify the extreme actions, there is a growing
distrust of government at all levels. I would encourage you to accept the recommendations in
this letter and have an open and vigorous debate on these pay increases.
Regards,
Mark Kennedy
From: Melanie Allen [mailto:mallen@garlic.com]
Sent: Tuesday, May 5, 2020 12:56 PM
To: Council <Council@losgatosca.gov>
Subject: Salary Increase
When so many people are hurting, I can’t believe Los Gatos would increase salaries at this time.
Does the Council feel that Los Gatos is exempt from this suffering? Are you blind to what many
in our own Community are going through? So many have not even received the unemployment
checks they are do or the Covid 19 relief funds. Wake up, people are suffering. It would be Cold
Hearted & Callous of our Council to act on this before the economy is back up & running.
Melanie Allen
From: Stanley Sells
Date: May 5, 2020 at 2:36:21 PM PDT
To: Marcia Jensen <MJensen@losgatosca.gov>, Marico Sayoc <MSayoc@losgatosca.gov>, Rob
Rennie <RRennie@losgatosca.gov>, BSpector <BSpector@losgatosca.gov>
Subject: RE: Council Meeting Item 8 - May 5, 2020
Dear Council Members,
COVID-19 has brought physical, emotional, and financial carnage to our Town, State, Country,
and World. With unemployment that will top 25%, and families attempting to figure out where
they will find the money to provide for next meals, rent, mortgage, etc., it is ludicrous to think
that you intend to vote tonight to hand out discretionary bonuses and salary increases to town
employees. To consider such an action as a consent item, at this time is like a gut punch. With
executives and others with means taking pay cuts, such an action makes no sense at this
time. Please do the right thing tonight.
Regards,
Stan Sells
Sells Financial Services, Inc.
From: Phil Koen
Sent: Tuesday, May 5, 2020 3:23 PM
To: Marcia Jensen <MJensen@losgatosca.gov>; BSpector <BSpector@losgatosca.gov>; Marico
Sayoc <maricosayoc@gmail.com>; Rob Rennie <RRennie@losgatosca.gov>
Cc: Laurel Prevetti <LPrevetti@losgatosca.gov>; jak vannada ; Lee Fagot; Rick Tinsley; Rick Van
Hoesen
Subject: Agenda Item #8
Dear Honorable Mayor and Council Members,
Perhaps the Council can learn from Menlo Park regarding public outreach before entering into
negotiations with the Town’s bargaining units. Please see the attached.
The Town published agendas for 4 special closed door sessions held on February 4, March 24,
April 7 and April 28. That was the only notification given to residents regarding salary
negotiations. No information was shared coming out of these meetings. And only at this up
coming Council meeting will there be an opportunity to get public input - sadly AFTER
discussions have concluded.
This process is deeply flawed. We must do better than this.
Thank you,
Administrative Services
City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 www.menlopark.org
STAFF REPORT
City Council
Meeting Date: 2/7/2017
Staff Report Number: 17-025-CC
Regular Business: Receive a report and hear public comment on
upcoming negotiations with the American
Federation of State, County, and Municipal
Employees Local 829 (AFSCME); Menlo Park Police
Officers’ Association (POA); Menlo Park Police
Sergeants Association (PSA); and Local 521 Service
Employees International Union, CTW, CLC (SEIU)
on successor agreements to current agreements
expiring June 30, 2017
Recommendation
Receive a report from staff and hear public comment on upcoming negotiations with the American
Federation of State, County, and Municipal Employees Local 829 (AFSCME); Menlo Park Police Officers’
Association (POA); Menlo Park Police Sergeants Association (PSA); and Local 521 Service Employees
International Union, CTW, CLC (SEIU) on successor agreements to current agreements expiring June 30,
2017.
Policy Issues
This report is prepared in accordance with City Council Policy and Procedure CC-11-0001, Public Input and
Outreach regarding Labor Negotiations.
Background
The current Memoranda of Understanding (MOUs) with all four City recognized employee bargaining units
expire June 30, 2016. Pursuant to best labor-management practices, it is time to open negotiations on
successor agreements with each unit. With the exception of the City Manager, City Attorney,
unrepresented management employees, and unrepresented confidential employees, all regular full-time and
regular part-time City employees are represented by one of these four units. Benefits for four unrepresented
confidential employees have, by past practice, mirrored those benefits provided under the AFSCME
agreement.
Analysis
This report is submitted to the City Council, members of the affected bargaining units, and members of the
public in order to provide relevant information on the bargaining units’ salaries and benefits in preparation
for the upcoming negotiations of successor labor agreements or MOUs between the bargaining units and
the City. This information is provided to all interested parties 15 days in advance of the City Council’s
meeting on February 7, 2017 at which time the public will have an opportunity to provide comment on this
matter in accordance with City Council Policy and Procedure #CC-11-0001 (Attachment A).
Staff Report #: 17-025-CC
City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 www.menlopark.org
As in prior years, the tenets that are used to determine the City’s bargaining principles will assist with
aligning the bargaining efforts with the service and financial priorities established by both the City Council
and the community. The following principles will be considered in preparation for and throughout labor
negotiations with each bargaining unit on successor agreements:
x Service to the Community – Negotiations shall strive to achieve agreements that maintain and
enhance services to the community provided by the bargaining unit members in their various roles
and in concert with City Council adopted policies and goals;
x Fiscal Sustainability – Negotiations shall strive to achieve successor agreements that achieve
continued fiscal sustainability in accordance with the City’s 10-year financial forecast for the General
Fund; and
x Recruitment & Retention – Negotiations shall strive to develop terms that are beneficial to the
recruitment and retention of high quality employees.
Annualized total compensation for each bargaining unit using January 1, 2017 data is shown below, along
with a breakdown of salary, pension, and other benefit costs.
Salaries – As the largest component of compensation, salaries have the most significant impact on the
City’s long-term fiscal sustainability as well as the City’s ability to recruit and retain high quality employees
to deliver exemplary service to the community. The following provides a brief recap of changes in salaries
as provided in the current MOU with each unit.
City of Menlo Park
Annual Personnel Costs by Bargaining Unit as of January 1, 2017
Compensation Component SEIU AFSCME POA PSA Total
Base salaries 10,782,941$ 3,525,100$ 4,261,298$ 1,083,171$ 19,652,510$
Other PERS eligible salary 81,970 8,263 183,737 49,007 322,977
Retirement (CalPERS)2,064,359 688,801 1,289,051 412,090 4,454,301
Medical 2,058,359 490,537 519,659 131,697 3,200,252
Dental & Vision 372,754 67,996 97,077 27,481 565,308
Other fringe benefits 87,531 27,723 32,608 8,959 156,821
Total Compensation 15,447,915$ 4,808,420$ 6,383,430$ 1,712,405$ 28,352,170$
Authorized FTE's 151 35 37 8 231
Staff Report #: 17-025-CC
City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 www.menlopark.org
1. POA and PSA – Classifications represented by the POA and PSA last received a 3% salary
adjustment on July 12, 2016 and September 4, 2016 respectively. As previously negotiated, the City
conducted a comprehensive total compensation survey which found that Menlo Park continues to
pay above the market median among comparable agencies. Nonetheless, the City and labor
reached agreement that the effect of inflation is deteriorating the City’s position in the comparative
analysis following five years without a salary adjustment. Inflation was calculated using the change
in Consumer Price Index for the San Francisco – Oakland – San Jose region, as measured by the
U.S. Bureau of Labor Statistics from February 2015 to February 2016.
2. AFSCME and SEIU – Classifications represented by AFSCME and SEIU last received salary
adjustments on July 12, 2016 based on two negotiated items. First, similar to the POA and PSA, all
classifications were provided with an across the board salary adjustment equal to 2% to offset the
impact of inflation. Second, the City agreed to increase market based adjustments to total
compensation for all classifications found to be below market in a total compensation survey
completed by a third party consultant.
Benefits - Similar to salaries, benefits are also negotiated with labor groups and ultimately set by the City
Council through approval of labor contracts. Unlike salaries, however, the future cost of benefits tend to be
governed by a third party and are correlated to actual experience either for the City or for a pool of cities.
The most recent substantive change in the benefits package for all represented employees was the addition
of vision insurance in January 2016 for AFSCME, SEIU, and PSA and January 2017 for POA. Minor
adjustments were also made to the City’s contribution for medical insurance through a Section 125
Cafeteria Plan. When reviewing benefit costs, it is important to consider:
1. Retirement (CalPERS) – In response to recent challenges to meet its targeted assumed rate
investment earnings, called the “discount rate”, CalPERS decided on December 21, 2016, to
decrease the discount rate from 7.5% to 7.0%, net of expenses. This assumption change will result
in higher unfunded liabilities and, consequently, higher employer contributions phased in over three
years beginning on July 1, 2018. CalPERS estimates that the reduction to 7.0% will result in an
increase in costs as high as 3% of payroll for miscellaneous employees and 5% of payroll for safety
employees. While this increase is phased in over three years, by fiscal year 2020-21, the City’s
annual PERS expense is expected to increase by an estimated $1 million per year above previous
anticipated cost increases. In addition to the reduction in the discount rate from 7.5% to 7.0%, other
factors that affect CalPERS costs are actual investment earnings, changes in demographics such as
average life expectancies, and changes in actuarial assumptions that smooth the effects of
significant deviations from assumptions over several years. The anticipated increases will be shared
equally with SEIU and AFSCME employees in accordance with their MOU. POA and PSA
employees contribute a fixed 3% above the minimum required for safety employees.
2. Medical – The City contracts with CalPERS under the Public Employee Members’ Medical and
Hospital Care Act (PEMHCA) to provide medical insurance to all eligible employees. PEMHCA
premiums are impacted by the experience of covered members in the PEMHCA pool,
demographics, and laws such as the Affordable Care Act (ACA). To the extent that the pool
experiences changes in any of those factors or if the number of dependents covered by the City
changes, rates may increase higher than the assumed 4% annual inflation contained in the City’s
forecast models. As of the date of this report, the impact changes to the ACA at the Federal level are
not known and cannot be reasonably estimated.
Staff Report #: 17-025-CC
City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 www.menlopark.org
Impact on City Resources
There are no impacts on City resources as a result of receiving input on negotiations. It is anticipated that
the City Council will meet in closed session to provide direction to the City’s negotiating team, Legal
Counsel from Renee Sloan Holtzman Sakai, LLP and City staff. The negotiators will meet and confer with
each bargaining units’ negotiation team, and once tentative agreement is reached on each successor
agreement, the fiscal impact of that tentative agreement will be released 15 days prior to the City Council’s
vote to ratify the successor agreement(s) at a public meeting(s). The estimated cost for negotiation of all
four agreements, inclusive of release time for labor representatives paid by the City, is between $85,000
and $125,000 depending on the complexity of negotiations.
Environmental Review
No environmental review is required for these items.
Public Notice
Public Notification was achieved by posting the report 15 days prior to the City Council meeting of February
7, 2017.
Attachments
A. Public Input and Outreach regarding Labor Negotiations Policy
Report prepared by:
Lenka Diaz, Human Resources Manager
City of Menlo Park City Council Policy
Department
City Council Page 1 of 1
Effective Date
03/02/2011
Subject
Public Input and Outreach regarding Labor Negotations
Approved by
City Council
03/01/2011
Procedure #
CC-11-0001
PURPOSE
To incorporate public input into the labor negotiations process.
BACKGROUND
The City Council has expressed a desire to improve public communication and outreach on labor
relations to the extent reasonably possible.
POLICY
A regular business item shall be placed on a Council agenda in advance of formal labor negotiations
that includes an opportunity for the public to comment. At least seven days prior to this meeting,
staff shall post a report that contains relevant information on employee salaries and benefits, as well
as the methodology used to determine a competitive and appropriate compensation package. As
part of this process, a concerted effort shall be made to request public comment on the negotiations
parameters.
As a general rule, staff shall engage the services of a labor attorney to participate in formal labor
negotiations with bargaining units representing permanent employees.
During labor negotiations, public comment will be provided prior to the entry into closed session to
discuss labor negotiations, in accordance with State law. At the conclusion of the closed session,
the Council shall report out any action taken, including in the record the individual votes taken and
the characterization of the deliberations. In addition, at some point in the negotiations process, staff
shall submit a public report to Council that provides a general status of labor negotiations and that
allows for public input prior to concluding negotiations.
Staff shall prepare and make public a staff report, at least fifteen calendar days prior to Council
consideration of a tentative agreement or implementation resolution for any bargaining unit, that
provides full details and costing associated with the recommended action, shall schedule the matter
as a regular business item and shall provide an opportunity for the public to comment.
Attachment A
THIS PAGE INTENTIONALLY LEFT BLANK
From: Cindy Weintraub
Sent: Tuesday, May 05, 2020 4:55 PM
To: Council <Council@losgatosca.gov>; Marcia Jensen <MJensen@losgatosca.gov>; BSpector
<BSpector@losgatosca.gov>; Rob Rennie <RRennie@losgatosca.gov>; Marico Sayoc
<MSayoc@losgatosca.gov>; Prevetti@losgatosca.gov
Subject: Opposed to Salary Increase for LG Town Employees and Management
(WAS READY TO BE EMAILED AT 4:25PM BUT XFINITY CABLE SERVICE DOWN)
Mayor Jensen and Council,
I understand you are voting tonight to increase salaries of town employees by $435,000
effective July 1, 2020 instead of next year (contract expires June 30, 2021)
In this depressed economy, you and the Council should not be approving this increase and it is
not appropriate to be passing this increase without town citizens gaining more insight into the
background and reasoning at a public forum.
I value all of our hard working town employees and as this is tax payer money being used, I'd
like to understand who's getting what out of that money and why you are approving it a year
earlier than the term of the contract.
I look forward to your response.
Cindy Weintraub
From: Cindy Weintraub
Sent: Tuesday, May 05, 2020 4:55 PM
To: Council <Council@losgatosca.gov>
Subject: Do Not Approve Town Salary Increases tonight
I wrote an email on this subject but will send as soon as Xfinity Internet is back up.
Postpone vote on this town employee and mgt $435k increase until we have a public debate
Thank you,
Cindy Weintraub