08 Staff Report.Salary Increases
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 ● (408) 354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 05/05/2020
ITEM NO: 8
DATE: April 29, 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
RECOMMENDATION:
Approve addenda to the Town Employees’ Association (Attachment 1) and the American
Federation of State, County and Municipal Employees Memoranda of Understanding
(Attachment 2) and revisions to the classifications plans for the unrepresented Management
(Attachment 5), Confidential (Attachment 6), and Temporary (Attachment 7) units.
BACKGROUND:
Memoranda of Understanding (MOU) between the Town Employees’ Association (TEA) and the
American Federation of State, County and Municipal Employees (AFSCME) expire on June 30,
2021. Although the MOUs do not expire until 2021, each MOU contains language that provides
a reopener to negotiate salary [i.e., cost of living adjustment (COLA)] during the third year of
the agreement. In accordance with the Town’s Employer-Employee Relations Resolution No.
1974-41, representatives of the Town, TEA, and AFSCME have met and conferred in good faith
and within the scope of representation to reach an agreement related to the reopener
provisions.
The Management, Confidential, and Temporary units are at-will, unrepresented units of the
Town. Unlike the Town’s three bargaining groups who negotiate for reopeners in existing
contracts as well as new contracts, recommendations for changes to the Management,
Confidential, and Temporary unit classification plans are at the discretion of the Town Manager,
with the consent of the Council, based on budget considerations and other factors at that time.
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SUBJECT: Approve Addendums to MOU’s and Revisions to Unrepresented Classification
Plans
DATE: April 29, 2020
DISCUSSION:
After several meetings with TEA and two meetings with AFSCME, tentative agreements were
reached to implement a 1% COLA and a 2% non-PERSable one-time bonus effective July 1,
2020. Because the Management and Confidential units are at-will and unrepresented, a formal
meet and confer process is not required: however, it is recommended that the Town Council
approve the same COLA parameters of the tentative agreements to the Management and
Confidential classifications. This action would maintain parity with the represented units and
the distance between supervisory and non-supervisory classification salary ranges to prevent
any overlapping of supervisory and non-supervisory salary ranges within similar career ladders
(also known as compaction).
In addition, the last COLA provided to the Town’s Temporary workforce was in July 2017. Salary
adjustments to specific Temporary classifications have been authorized by the Town Council
since July 2017 to reflect State minimum wage increases and to align the Temporary Police
Officer classifications with the represented Police Officer classifications for attraction and
retention purposes. It is recommended that the 1% COLA be applied to all Temporary
classification except for Police Officer Reserve and Police Officer Temp/Hourly because the
hourly rates were already adjusted in December 2019 to coincide with the Police Officers’
Association (POA) top step rate.
CONCLUSION:
The TEA and AFSCME tentative agreements have been prepared within the parameters
provided to the Town’s negotiators by the Town Council and have been ratified by TEA and
AFSCME memberships. It is recommended that the parameters of the tentative agreements be
approved, and the Town Manager be authorized to execute the addenda to the MOUs. It is
also recommended that the same authority is extended for the Management and Confidential
groups and a 1% COLA authorized for Temporary classifications excluding the Police Officer
Reserve and Police Officer Temp/Hourly classifications.
FISCAL IMPACT:
The anticipated fiscal impact for all recommended salary adjustments in FY 2020/21 is $433,338
and reduced to $183,476 for subsequent fiscal years. If the recommendations are approved,
the total cost of the increases to salary and one-time bonuses will be included in the FY
2020/21 Operating budget presented for review and consideration during the May 19, 2020
Town Council Meeting.
PAGE 3 OF 3
SUBJECT: Approve Addendums to MOU’s and Revisions to Unrepresented Classification
Plans
DATE: April 29, 2020
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
Attachments:
1. TEA Addendum to MOU
2. AFSCME Addendum to MOU
3. TEA Salary Schedule
4. AFSCME Salary Schedule
5. Town Council and Management Salary Schedule
6. Confidential Salary Schedule
7. Temporary Salary Schedule