Staff Report.Amend Temporary Classification Plan
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: 12/07/2021 ITEM NO: 3
DATE: December 1, 2021
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Approve an Amendment to the Classification Plan for the Temporary Unit to
Provide a Salary Increase, Add the Classification of Project Manager, Align the
Temporary Police Officer Classification Salary Step with the Top Step of the
Police Officer Classification Represented by the Police Officers Association, and
Comply with the California Minimum Wage Increase Effective January 1, 2022
RECOMMENDATION:
Approve an amendment to the classification plan for the Temporary unit to provide a salary
increase, add the classification of Project Manager, align the Temporary Police Officer
Classification salary step with the top step of the Police Officer classification represented by the
Police Officers Association (Attachment 1), and comply with the California minimum wage
increase effective January 1, 2022 (Attachment 2).
BACKGROUND:
The Town of Los Gatos Personnel Rules and Regulations (Section 4.4) require that amendments
and revisions to the classification plan are effective upon approval by the Town Council. The
Town’s classification plan is represented in each of the six separate employee group salary
schedules. The California Public Employees’ Retirement System (CalPERS), that administers the
Town’s employee pension plan and health plan benefits, also require that salary schedule
changes be formally adopted by an agency’s governing body. In most cases, changes are typically
presented to Council for approval as part of the formal budget adoption or through the labor
negotiations process.
The Temporary unit is an at-will, unrepresented unit of the Town. Unlike the Town’s three
bargaining groups who negotiate for reopeners in existing contracts as well as new contracts,
PAGE 2 OF 4 SUBJECT: Approve Amendments to the Temporary Classification Plan DATE: December 1, 2021
BACKGROUND (continued):
recommendations for changes to the Temporary unit classification plan is at the discretion of the
Town Manager, with the consent of Council, based on budget considerations and other factors at
that time.
The Project Manager classification was authorized by Resolution 2001-16 (Attachment 3) during
the February 20, 2001 Council meeting. The classification was described as a temporary at-will
position to serve in a variety of capacities throughout the organization. The classification has
continued to be used throughout the Town and the typical assignments include gathering and
analyzing data, defining problems and solutions, creating proposals for improvements, and
implementing work plans or special programs. The classification has also been used for the
appointment of interim key management staff.
In 2016, the California Governor amended the State’s minimum wage orders to increase the
minimum wage rate one dollar each year beginning on January 1, 2017 and continuing through
January 1, 2022 until reaching the minimum wage rate goal of $15.00 per hour. Should Council
approve an amendment to the classification plan to provide a two percent (2%) salary increase
for the Temporary unit effective in the pay period that includes July 1, 2021, the Town will still
have several temporary/hourly classifications listed on the Temporary Classifications Salary
Schedule that have minimum rates of pay still below $15.00 per hour and those rates must be
adjusted to the new California minimum wage.
DISCUSSION:
Temporary Classification Salary Increase Recommendation
During the November 16, 2021 Council meeting, the Town Manager received authorization to
approve addenda to the Town Employees’ Association (TEA) and the American Federation of
State, County and Municipal Employees (AFSCME) Memoranda of Understanding and to revise
the classification plans for the unrepresented Management and Confidential units. This
authorization included a two percent (2%) salary increase for all classifications effective in the
pay period that includes July 1, 2021.
To continue to provide the ability to attract and retain temporary employees to supplement the
Town’s full-time equivalent workforce, it is recommended that the two percent (2%) salary
increase be applied to all Temporary classifications except for those classifications that align
hourly rates with TEA and Police Officer Association classifications as identified on the Temporary
Classifications Salary Schedule (Attachment 1).
PAGE 3 OF 4 SUBJECT: Approve Amendments to the Temporary Classification Plan DATE: December 1, 2021
DISCUSSION (continued):
Project Manager Classification Recommendation
In recent years CalPERS has amended its requirements to have salary schedules (the Town’s
classification plan) formally adopted by an agency’s governing body and publicly available as well
as implemented new rules related to the rehire of retired annuitants. Due to the required
knowledge and complexity related to Project Manager assignments, the classification has
typically been filled by retired public sector employees, such as CalPERS retired annuitants, to
work on specific projects or to fill critical temporary management vacancies.
To ensure continued compliance with CalPERS rules and regulations as well as to promote
transparency, staff recommends that the classification of Project Manager be identified on the
Temporary Salary Schedule. The prior 2001 Council resolution provided a salary schedule range
of $25 - $175 per hour. To continue to provide salary flexibility when hiring temporary
management positions, staff is recommending a revised salary range of $43 - $113 per hour. The
range spans the minimum and maximum hourly rates of pay (rounded up to the nearest dollar)
equivalent to the current Town Council and Management Classification Salary Schedule
(Attachment 4); specifically, the classifications that are within the Town Manager’s authority to
appoint. Current employees in the Project Manager classification have hourly rates that are
within the proposed range and will also receive a two percent (2%) salary adjustment should
Council provide the recommended Temporary Classifications Salary Schedule increase authority
to the Town Manager. Future hires will be offered an hourly rate anywhere within the range
commensurate with experience, education, and the body of work.
Temporary Police Officer Classification Recommendation
According to the Town’s Municipal Code (Section 2.30.1015), Police Reserve Officers shall have
the full powers and duties of a Peace Officer as provided by California Penal Code section 830.1.
The Temporary Police Officer classification is used to backfill vacancies of full-time equivalent
positions. The rates of pay for both classifications are aligned to the top step Police Officers’
Association (POA) represented Police Officer classification. To ensure that the temporary
classifications align with future proposed salary increases authorized for POA, staff is
recommending that instead of identifying a specific pay range on the Temporary Classifications
Salary schedule, that the range is identified by the verbiage “equal to the top step hourly rate for
POA Police Officer”.
State Minimum Wage Salary Schedule Recommendation
The proposed Temporary Classifications Salary Schedule, effective June 27, 2021, contains four
classifications that have a minimum rate of pay that is less than $15.00 per hour: Clerical Aide
Temp/Hourly, Facility Attendant Temp/Hourly, Library Page Temp/Hourly, and Ticket Booth
PAGE 4 OF 4 SUBJECT: Approve Amendments to the Temporary Classification Plan DATE: December 1, 2021
DISCUSSION (continued):
Attendant. To remain in compliance with the State’s minimum wage order, staff recommends
increasing the Step 1 rate for the four classifications to $15.00 per hour and maintaining the five
percent (5%) differential between steps one through six. The increase would coincide with the
pay period that includes January 1, 2022 and is reflected in Attachment 2.
CONCLUSION:
Staff is recommending approval of an amendment to the classification plan for the Temporary
unit encompassing several revisions.
• The recommended revision to provide a two percent (2%) salary increase will assist with
recruitment and retention efforts of the temporary workforce.
• Adding the classification of Project Manager to the Temporary Salary Schedule will ensure
compliance with CalPERS rules by allowing the classification and salary range to be
located easily on the Town’s website. The proposed salary range is also aligned with the
current management group’s hourly pay rates for consistency.
• The recommendation to identify the temporary Police Officer Classification salary steps
with the permanent Police Officer top step by including the verbiage “equal to the top
step hourly rate for POA Police Officer” will confirm that the temporary rate of pay is
consistently in line with the Police Officer classification represented by POA and will not
require a separate Council action each time the POA salary schedule is revised.
• The Town is required to comply with the California minimum wage increase effective
January 1, 2022. Should the two percent (2%) increase for the Temporary classifications
not be authorized by Council, the Town will still be required to adjust the minimum hourly
rate of previously identified Temporary unit classifications up to $15.00 per hour.
FISCAL IMPACT:
The anticipated fiscal impact for the recommended temporary classifications salary increase in FY
2021/22 is $12,428. The FY 2021/22 Operating Budget forecast included an anticipated two
percent (2%) increase in all Town salaries and benefits, therefore, a budget adjustment is not
necessary.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
Attachments:
1. Temporary Classifications Salary Schedule Effective June 27, 2021
2. Temporary Classifications Salary Schedule Effective December 26, 2021
3. Project Manager Council Resolution
4. Town Council and Management Classifications Salary Schedule