08 Desk Item.Salary Increases
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 05/05/2020
ITEM NO: 8
DESK ITEM
DATE: May 5, 2020
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Approve Addenda to the Town Employees’ Association and the American
Federation of State, County and Municipal Employees Memoranda of
Understanding and Revisions to the Classification Plans for the
Unrepresented Management, Confidential, and Temporary Units
REMARKS:
Attachment 8 contains public comment received since the issuance of the staff report and
11:00 a.m. May 5, 2020.
Several of the public comments shared similar misunderstandings and misconceptions which
staff has corrected below.
The Council hasn’t had an opportunity to evaluate and discuss the recommendation.
The Town Council begins the labor negotiations process by designating a team to represent the
Town’s interests during negotiations with the bargaining units. For the Town, the negotiating
team consists of Town’s management knowledgeable about finance, human resources and site
organization, and an attorney with expertise in labor negotiations and the Bay Area labor
market.
In order to instruct their negotiating team, the Town Council is permitted by the Brown Act to
meet with their negotiating team in closed session. (Gov. Code § 3549.1, subd. (d).) For this
year’s negotiations, Council met with their negotiating team in Closed Session on February 4,
March 24, April 7, and April 28 to discuss the item. During these closed session meetings, the
Town Council authorized the parameters for negotiations, including the amount of money
available for negotiations and instructed the negotiations team on the Town’s goals in light of
received economic and budget information related to COVID-19 impacts to the Town
organization.
PAGE 2 OF 3
SUBJECT: Approve Addendums to MOU’s and Revisions to Unrepresented Classification
Plans
DATE: May 5, 2020
In addition, during the MOU process the Town negotiating team met with the Town Employee
Association (TEA) on March 4, March 18, and April 15, and the American Federation of State,
County and Municipal Employees (AFSCME) on March 10 and April 21.
The staff recommended salary increase is greater than the proposed COLA.
For the most recent Memoranda of Understanding with TEA and AFSCME the bargaining units
received a 2.5% COLA for FY 2018/19 and a 3.0% COLA for FY 2019/20. This agenda item
proposes a recommended 1.0% COLA for FY 2020/21. This represents a total three-year COLA
of 6.5%. Any percentage differences beyond the stated COLA’s are attributed to mandated
benefit increases and previously agreed to classification adjustments.
It should be noted that during the last MOU negotiations the bargaining groups voluntarily
agreed to the elimination of sick leave cash out and retiree medical contributions and the same
eliminations were applied to the Management and Confidential groups. The Temporary
employee group does not receive benefits.
The Town salary schedules reflect higher increases than reported.
Market adjustments refer to specific job classifications that when surveyed against the Town’s
comparable survey agencies, are below market survey data. In the referenced January 1, 2017
TEA salary schedule, these classifications received an across-the-board salary increase (cost-of-
living increase) plus an additional percentage increase to align the salaries closer to market
survey data. Market adjustments are not proposed in the current staff recommendation. The
same 1% cost-of-living increase is proposed for all classifications. To accurately verify the 1%
increase, please compare the proposed TEA salary schedule included as Attachment 3 with the
most recent TEA salary schedule posted on the Town’s website and approved by Council on
December 3, 2019 (Attachment 9).
Collective bargaining has established the wages and benefits through June 2021.
The term of each Memorandum of Understanding for TEA and AFSCME is through June 2021,
and each agreement contains a provision to reopen the relevant section related to salary during
the third year of the agreement. This provision requires a meet and confer process between
the Town and the two labor associations.
Attachments received with Staff Report:
1. TEA Addendum to MOU
2. AFSCME Addendum to MOU
3. TEA Salary Schedule
4. AFSCME Salary Schedule
PAGE 3 OF 3
SUBJECT: Approve Addendums to MOU’s and Revisions to Unrepresented Classification
Plans
DATE: May 5, 2020
5. Town Council and Management Salary Schedule
6. Confidential Salary Schedule
7. Temporary Salary Schedule
Attachments received with Desk Item:
8. Public Comments
9. TEA salary schedule December 2019