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Staff Report.Unrepresented Mgmt Conf Temp Agreement PREPARED BY: Salina Flores 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: 06/07/2022 ITEM NO: 22 DATE: June 2, 2022 TO: Mayor and Town Council FROM: Laurel Prevetti, Town Manager SUBJECT: Approve Cost of Living Increases for Unrepresented Management, Confidential, and Temporary/Hourly Employees; One-Time Non-PERSable Bonuses for Confidential and Management; and a 5% Market Adjustment for Confidential and Temporary/Hourly Employees RECOMMENDATION: Approve cost of living increases for unrepresented Management, Confidential, and Temporary/Hourly Employees; one-time non-PERSsable bonuses for Confidential and Management; and a 5% market adjustment for Confidential and Temporary/Hourly Employees. BACKGROUND: On June 7, 2022, Council will consider labor agreements with the Association of Federal, State, County and Municipal Employees (AFSCME), Town Employee’s Association (TEA), and the Police Officers’ Association (POA). Unrepresented employees are those that are salaried Management, hourly Confidential, and Council Appointees’. Temporary/Hourly employees that work fewer than 20 hours per week are also in the unrepresented group and serve in an unbenefited capacity. All serve as at-will employees. Compensation and benefit changes for unrepresented employees are approved by Council and typically align with changes resulting from negotiations of successor agreements with the Town’s represented bargaining groups to retain general parity with the exception of the Council Appointee positions of Town Manager and Town Attorney. Council Appointee compensation and benefit changes are determined directly by Council and are contained in individual Employment Agreements. Staff is not recommending a salary change for Council Appointee employees. PAGE 2 OF 2 SUBJECT: Unrepresented Management, Confidential, and Temporary/Hourly Employees DATE: June 2, 2022 DISCUSSION: The bargaining units settled with two-year agreements (see separate agenda items for each). Staff is recommending a 3% cost of living increase for FY 2022/23 and FY 2023/24 for unrepresented Management and Confidential employees and a one-time, non-PERSable bonus of $2,500 for unrepresented Management and Confidential employees. In addition, Confidential employees would also receive a 5% market adjustment. A market adjustment for Management may be considered at a later date, once potential compaction issues have been analyzed. Temporary/Hourly classification rates are generally benchmarked to the full-time counterpart positions and as such, staff is recommending a 3% cost of living increase for FY 2022/23 and FY 2023/24 and a 5% market adjustment. All parameters are effective with the first full pay period in July. These recommendations maintain parity with TEA. CONCLUSION: The recommendations contained in this report bring the unrepresented groups to general parity with the represented employees. FISCAL IMPACT: The anticipated fiscal impact for the 3.0% COLA increases in FY 2022/23 is $65,000 for Confidential, $216,000 for Management, and $22,000 for Temporary classifications. The anticipated fiscal impact for FY 2022/23 market adjustments for Confidential is $108,840 and $37,000 for Temporary classifications. $. In addition, the anticipated fiscal impact of onetime non-pensionable payments for Management and Confidential is $108,500 for FY 2022/23. The total cost impact will be absorbed in the Town’s existing operating budget. ENVIRONMENTAL ASSESSMENT: This is not a project defined under CEQA, and no further action is required. Attachments: 1. Salary Schedule for Management Effective July 10, 2022 2. Salary Schedule for Confidential Classifications Effective July 10, 2022 3. Salary Schedule for Temporary/Hourly Classifications Effective July 10, 2022