Staff Report.TEA, AFSCME, MGMT, Confidential
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: 11/16/2021 ITEM NO: 15
DATE: November 11, 2021
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 and Confidential Units; and Authorize Salary
and Benefits Budget Adjustments in the Amount of $85,596 from Available
General Fund Capital/Special Projects Reserve
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 classification plans for the unrepresented Management
(Attachment 5) and Confidential (Attachment 6) units; and authorize salary and benefits budget
adjustments in the amount of $85,596 from available General Fund Capital/Special Projects
Reserve.
BACKGROUND:
Memoranda of Understanding (MOU) between the Town Employees’ Association (TEA) and the
American Federation of State, County and Municipal Employees (AFSCME) expired on June 30,
2021. During the August 17, 2021 Council Meeting, Town Council approved the extension of
term of the existing AFSCME agreement from July 1, 2021 through June 30, 2022 along with a
one-time eight (8) hour floating holiday to be used by June 30, 2022.
In accordance with the Town’s Employer-Employee Relations Resolution No. 1974-41,
representatives of the Town and TEA have met and conferred in good faith and within the
scope of representation to reach an agreement for a successor MOU.
PAGE 2 OF 4 SUBJECT: Approve Addenda to MOU’s and Revisions to Unrepresented Classification Plans DATE: November 11, 2021
BACKGROUND (continued):
The Police Officers’ Association (POA) MOU expired on September 30, 2021. The Town and
POA have had multiple negotiation meetings beginning in August 2021 to attempt to reach a
successor agreement. To date, an agreement has not been reached. A request to approve a
successor agreement will be brought to a future Town Council meeting following the successful
execution of a tentative agreement.
The Management and Confidential units are at-will, unrepresented units of the Town. Unlike
the Town’s three bargaining groups who negotiate for successor MOU’s, recommendations for
changes to the Management and Confidential 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.
DISCUSSION:
After several meet and confer sessions with TEA without reaching a successful tentative
agreement, a State Represented Mediator was assigned to facilitate meetings with the goal of
reaching an agreement. Subsequently, a tentative agreement was reached to extend the term
of the current agreement from July 1, 2021 through June 30, 2022, implement a two-percent
(2%) salary increase, provide a one-time eight (8) hour floating holiday (not available for cash-
out) to be used by June 30, 2022, exchange the existing annual holiday bank of hours for
Communications Dispatchers and Park Service Officer to an equivalent Holiday-in-Lieu premium
pay of 4.25%, and provide an increase in employee tuition reimbursement from $1,500 per
fiscal year to $3,000 per fiscal year. All other terms and conditions outlined in the TEA MOU
will remain status quo and negotiations will commence again in early 2022.
In accordance with a separate negotiated side letter agreement (Attachment 7) with TEA, staff
is also requesting that the classifications of Communications Dispatcher and Communications
Dispatcher Lead receive salary adjustments of 5.42% and 2.11% respectively, thereby correcting
the salary ranges by bringing them to market median to address recruitment and retention
issues.
AFSCME was the first bargaining unit to reach an agreement with the Town for a successor
agreement and did not receive the benefit of the two-percent (2%) salary increase that was
negotiated through mediation for TEA. Staff recommends that Council approve an addendum
to the AFSCME MOU for the same two-percent (2%) salary increase for AFSCME members.
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
a two-percent (2%) salary increase, provide a one-time eight (8) hour floating holiday (not
available for cash-out) to be used by June 30, 2022, and provide an increase in
PAGE 3 OF 4 SUBJECT: Approve Addenda to MOU’s and Revisions to Unrepresented Classification Plans DATE: November 11, 2021
DISCUSSION (continued):
employee tuition reimbursement from $1,500 per fiscal year to $3,000 per fiscal year. 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).
CONCLUSION:
The TEA tentative agreement has been prepared within the parameters provided to the Town’s
negotiators by the Town Council and has been ratified by TEA membership. A side letter of
agreement is in process to adjust the salary ranges to market median for the Communications
Dispatcher and Communications Dispatcher Lead classifications. The Town has also met and
conferred with AFSCME regarding a two-percent (2%) salary increase for its membership. It is
recommended that the parameters of the tentative agreements be approved, and the Town
Manager be authorized to execute the addenda to the MOU’s for TEA and AFSCME. It is also
recommended that the same authority is extended for the Management and Confidential
groups regarding the specific compensation and benefit items outlined in the earlier discussion.
FISCAL IMPACT:
The anticipated fiscal impact for all recommended salary increases in FY 2021/22 is $431,199.
The FY 2021/22 Operating Budget forecast included an anticipation of two-percent (2%)
increases in Town salaries and benefits, therefore, a budget adjustment is not necessary for the
total salary increase cost of $345,603.
The additional fiscal impact related to the salary adjustments for Communications Dispatcher
and Communications Dispatcher Lead classifications is not included in the current Operating
Budget. The requested budget adjustment in the amount of $85,596 from available General
Fund Capital/Special Projects Reserve will provide funding for the additional salary and benefit
cost for FY 2021/22. Funding to support the ongoing cost in subsequent years 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. TEA Addendum to MOU
2. AFSCME Addendum to MOU
3. TEA Salary Schedule
4. AFSCME Salary Schedule
5. Town Council and Management Salary Schedule
PAGE 4 OF 4 SUBJECT: Approve Addenda to MOU’s and Revisions to Unrepresented Classification Plans DATE: November 11, 2021
Attachments (continued):
6. Confidential Salary Schedule
7. TEA Side Letter