Staff Report with attachments
PREPARED BY: Arn Andrews
Assistant Town Manager
Reviewed by: Town Manager and Interim 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: 06/21/2022 ITEM NO: 16
DATE: June 15, 2022
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Operating and Capital Budgets
a. Adopt a Resolution Approving the Town of Los Gatos Fiscal Year (FY)
2022/23 Operating Budget and FY 2022/23 – 2026/27 Capital
Improvement Program (CIP), New Appropriations, Additional Council
Actions on May 17, 2022 and Revisions Related to Salary and Benefit
Costs as Presented in the Labor Agreements Agenda Reports on June 7,
2022; American Rescue Plan Act Budget Adjustment, Minor Corrections,
and Carry-Forward Appropriations.
b. Adopt a Resolution Approving Commitment of Fund Balances under
GASB 54.
c. Approve FY 2021/22 Budget Adjustments:
1) Major Revenue Adjustments to Match Year-End Estimated Revenues
as Directed by the Town Council on May 17, 2022; and as Determined
from Updated Information
i. Property Tax Revenue Increase in the Amount of $582,609,
ii. Sales Tax Revenue Increase in the Amount of $428,828 ($361,806
in regular Sales Tax and $67,022 in Measure G Sales Tax)
iii. Business License Tax Revenue Increase in the Amount of
$175,000,
iv. Transient Occupancy Tax Increases in the Amount of $75,000, and
v. Recognize $36,308 General Fund Salary Reimbursement for
Capital Improvement Staff Work.
2) Expenditure Increases to Reflect Past Actions:
i. In the Amount of $300,000 to expense the $300,000 available
General Fund Pension/OPEB Reserve to the CEPPT Trust.
ii. In the Amount of $136,308 General Fund Salary Reimbursement
for Capital Improvement Staff Work.
3) Approve American Rescue Plan Act Budget Adjustments.
PAGE 2 OF 3 SUBJECT: Operating and Capital Budgets DATE: June 15, 2022
RECOMMENDATION:
Operating and Capital Budgets
a. Adopt a Resolution Approving the Town of Los Gatos Fiscal Year (FY) 2022/23 Operating
Budget and FY 2022/23 – 2026/27 Capital Improvement Program (CIP), New
Appropriations, additional Council Actions on May 17,2022 and Revisions Related to Salary
and Benefit Costs as Presented in the Labor Agreements Agenda Reports on June 7, 2022,
American Rescue Plan Act (ARPA) Budget Adjustments, Minor Corrections, and Carry-
Forward Appropriations
b. Adopt a Resolution Approving Commitment of Fund Balances under GASB 54.
c. Approve FY 2021/22 Budget Adjustments:
1) Major Revenue Adjustments to Match Year-End Estimated Revenues as Directed by the
Town Council on May 17, 2022; and as Determined from Updated Information
i. Property Tax revenue Increase in the Amount of $582,609,
ii. Sales Tax Revenue Increase in the Amount of $428,828 ($361,806 in regular Sales
Tax and $67,022 in Measure G Sales Tax)
iii. Business License Tax Revenue Increase in the Amount of $175,000,
iv. Transient Occupancy Tax Increases in the Amount of 75,000, and
v. Recognize $36,308 General Fund Salary Reimbursement for Capital Improvement
Staff Work.
2) Expenditure Increases to Reflect Past Actions:
i. In the Amount of $300,000 to expense the $300,000 available General Fund
Pension/OPEB Reserve to the CEPPT Trust.
ii. In the Amount of $136,308 General Fund Salary Reimbursement for Capital
Improvement Staff Work.
3) Approve American Rescue Plan Act (ARPA) Budget Adjustments.
BACKGROUND:
On June 7, 2022, staff presented a report to the Town Council which included Resolutions for
adoption of Operating and Capital budgets and approval of GASB 54 fund balances (Attachment
1). The budget adoption resolution included recommended changes from the May 17 budget
meeting, revenue adjustments, capital transfers, carry-forward appropriations, and minor
corrections. In addition, the budget resolution included expenditure adjustments associated
with recent labor agreements and corresponding revenue adjustments. At the June 7th Town
Council meeting, staff also recommended administrative American Rescue Plan Act (ARPA)
budget adjustments to comport with final Treasury guidance and audit documentation.
Given that the recommended budget adjustments associated with the successful completion of
labor agreements had not previously been reviewed by the Finance Commission, the Council
voted to refer the item back to the Finance Commission and continue the item to June 21,
2022.
PAGE 3 OF 3 SUBJECT: Operating and Capital Budgets DATE: June 15, 2022
DISCUSSION:
On June 13, 2022, staff presented the Finance Commission with a budget update which
included a summary of the terms and costing associated with the labor agreements. Staff also
presented the recommended corresponding revenue adjustments to offset the additional
salary and benefit expense. And lastly, staff provided a detailed discussion of the
recommended ARPA administrative procedures. Attachments 2 through 4 are supplemental
materials provided to the Finance Commission to facilitate the review of the budget.
The Finance Commission asked numerous questions of staff to understand the changes
pertaining to the labor agreements. The Commission also requested an updated Five-Year
Forecast to assist with the work ahead to evaluate potential cost savings and revenue
enhancements. At the conclusion of the Finance Commission discussion, members voted
unanimously to accept the staff’s budget balancing approach to pay for the labor agreements,
including use of Measure G funds and OPEB (utilizing the OPEB 115 Trust to fund budgeted
retiree Pay Go healthcare expenses) as presented in the June 7, 2022 staff report to Council.
CONCLUSION:
Staff recommends approval of FY 2021/22 budget adjustments, adoption of a Resolution
approving the Town of Los Gatos Fiscal Year (FY) 2022/23 Operating Budget and FY 2022/23 –
2026/27 Capital Improvement Program (CIP), approve American Rescue Plan Act Budget
Adjustments for FY 2021/22 and 2022/23, and adoption of a Resolution approving commitment
of Fund Balances under GASB 54.
COORDINATION:
The preparation of the budget documents involved the participation of all Town Departments
and the Finance Commission.
FISCAL IMPACT:
The fiscal impact is presented in summary form in the Financial Summaries chapter of the
Proposed Operating and Capital Budget for FY 2022/23.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
Attachments:
1. June 7 2022 Council Staff Report and Resolutions
2. Labor Agreements
3. Labor Agreement Summary
4. FY 2020/21 and 2021/22 Budget Balancing Options
5. ARPA Administration
This Page Intentionally Left Blank
PREPARED BY: Stephen Conway
Finance Director
Reviewed by: Town Manager, Assistant Town Manager, and Town Attorney,
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: 11
DATE: June 2, 2022
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Operating and Capital Budgets
a.Adopt a Resolution Approving the Town of Los Gatos Fiscal Year (FY)
2022/23 Operating Budget and FY 2022/23 – 2026/27 Capital
Improvement Program (CIP), New Appropriations, Additional Council
Actions on May 17, 2022 and Revisions Related to Salary and Benefit
Costs as Presented in the Labor Agreements Agenda Reports on June 7,
2022; American Rescue Plan Act Budget Adjustment, Minor Corrections,
and Carry-Forward Appropriations
b.Adopt a Resolution Approving Commitment of Fund Balances under
GASB 54.
c.Approve FY 2021/22 Budget Adjustments:
1)Major Revenue Adjustments to Match Year-End Estimated Revenues
as Directed by the Town Council on May 17, 2022; and as Determined
from Updated Information
i.Property Tax revenue Increase in the Amount of $582,609,
ii.Sales Tax Revenue Increase in the Amount of $428,828 ($361,806
in regular Sales Tax and $67,022 in Measure G Sales Tax)
iii.Business License Tax Revenue Increase in the Amount of
$175,000,
iv.Transient Occupancy Tax Increases in the Amount of $75,000, and
v.Recognize $36,308 General Fund Salary Reimbursement for
Capital Improvement Staff Work.
2)Expenditure Increases to Reflect Past Actions:
i.In the Amount of $300,000 to expense the $300,000 available
General Fund Pension/OPEB Reserve to the CEPPT Trust.
ii.In the Amount of $36,308 General Fund Salary Reimbursement
for Capital Improvement Staff Work.
3)Approve American Rescue Plan Act Budget Adjustments.
ATTACHMENT 1
PAGE 2 OF 4
SUBJECT: Operating and Capital Budgets
DATE: June 2, 2022
RECOMMENDATION:
Operating and Capital Budgets
a. Adopt a Resolution Approving the Town of Los Gatos Fiscal Year (FY) 2022/23 Operating
Budget and FY 2022/23 – 2026/27 Capital Improvement Program (CIP), New
Appropriations, additional Council Actions on May 17,2022 and Revisions Related to
Salary and Benefit Costs as Presented in the Labor Agreements Agenda Reports on June
7, 2022, American Rescue Plan Act (ARPA) Budget Adjustments, Minor Corrections, and
Carry-Forward Appropriations
b. Adopt a Resolution Approving Commitment of Fund Balances under GASB 54.
c. Approve FY 2021/22 Budget Adjustments:
1) Major Revenue Adjustments to Match Year-End Estimated Revenues as Directed by the
Town Council on May 17, 2022; and as Determined from Updated Information
i. Property Tax revenue Increase in the Amount of $582,609,
ii. Sales Tax Revenue Increase in the Amount of $428,828 ($361,806 in regular Sales
Tax and $67,022 in Measure G Sales Tax)
iii. Business License Tax Revenue Increase in the Amount of $175,000,
iv. Transient Occupancy Tax Increases in the Amount of 75,000, and
v. Recognize $36,308 General Fund Salary Reimbursement for Capital Improvement
Staff Work.
2) Expenditure Increases to Reflect Past Actions:
i. In the Amount of $300,000 to expense the $300,000 available General Fund
Pension/OPEB Reserve to the CEPPT Trust.
ii. In the Amount of $36,308 General Fund Salary Reimbursement for Capital
Improvement Staff Work.
3) Approve American Rescue Plan Act (ARPA) Budget Adjustments
BACKGROUND:
On April 18, 2022, the Proposed FY 2022/23 Operating and Capital Budgets were posted to the
Town’s website. Per Measure A, the Finance Commission received the Proposed Budgets 21
business days before May 17, 2022, which is the first meeting at which the Proposed Budgets
will be considered by the Town Council. The Finance Commission held three public meetings at
which Commissioners discussed the Proposed Budgets and provided recommendations to the
Town Council per Measures A and G. On May 17, 2022, the Town Council conducted public
hearings to discuss the proposed FY 2022/23 Operating and Capital Summary Budget and
Proposed FY 2022/23 – 2026/27 Capital Improvement Program. The Town Council considered
public testimony, discussed both documents, considered the Finance Commission
recommendations, and directed staff to bring back the documents for final approval
incorporating the Council recommendations.
PAGE 3 OF 4
SUBJECT: Operating and Capital Budgets
DATE: June 2, 2022
DISCUSSION:
The draft resolution (Attachment 1) incorporates the budget direction provided by the Council
at the May 17, 2022 budget hearing and the expenditure adjustments associated with labor
agreements and corresponding revenue adjustments. Since the adoption of the Proposed
Operating Budget on May 17, 2022, the Town successfully completed negotiations with all
bargaining units. In order to facilitate the terms of those agreements the Resolution provides
additional funding in the amount of $902,579 from the OPEB 115 Trust to fund retiree pay go
medical payments directly and allocating the remaining residual Measure G balance of
$679,433 previously allocated to the General Fund.
In addition, Attachment 3 illustrates budget adjustments related to the necessary American
Rescue Plan Act (ARPA) and General Fund revenue and expense adjustments and recaps the
total ARPA grant award of $7,229,744 and the Council directed uses approved or proposed
through June 7, 2022. Upon Treasury’s release of the simplified reporting process for entities
awarded less than $10 million in ARPA funding and additional guidance received through staff
review of federal compliance issues, staff recommends that the Town recognize the $3.4M of
FY 2021/22 and the anticipated $3.6M FY 2022/23 cash collections of ARPA revenues as
qualified revenue loss under the Treasury provisions for use in providing essential government
services. To further aid in compliance with federal uniform guidance and Single Audit
requirements, staff is intending to claim the lost revenue for use in providing essential
government services and eligible public safety payroll costs for both FY 2021/22 and FY
2022/23.
This recommended action will allocate all ARPA “replacement” revenues to the General Fund
which in turn will unencumber other General Fund operating revenues which were previously
dedicated for public safety costs. The newly unencumbered General Fund revenues can then
be allocated to the ARPA pandemic responses as identified, approved and allocated by Town
Council in Attachment 3.
Attachment 2 contains the resolution to formally move General Fund balances based on the
Town Council General Fund Reserve Policy and additional Council direction consistent with
General Accounting Standards Board (GASB) 54.
CONCLUSION:
Staff recommends approval of FY 2021/22 budget adjustments, adoption of a Resolution
approving the Town of Los Gatos Fiscal Year (FY) 2022/23 Operating Budget and FY 2022/23 –
2026/27 Capital Improvement Program (CIP), approve American Rescue Plan Act Budget
Adjustments for FY 201/22 and 2022/23, and adoption of a Resolution approving commitment
of Fund Balances under GASB 54.
PAGE 4 OF 4
SUBJECT: Operating and Capital Budgets
DATE: June 2, 2022
COORDINATION:
The preparation of the budget documents involved the participation of all Town Departments.
FISCAL IMPACT:
The fiscal impact is presented in summary form in the Financial Summaries chapter of the
Proposed Operating and Capital Budget for FY 2022/23.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
Attachments:
1. Resolution of the Town Council Approving FY 2022/23 Operating Budget and FY 2022/23 –
2026/27 Capital Improvement Program (with Exhibit A)
2. Resolution of the Town Council of the Town of Los Gatos Approving Commitments of Fund
Balance under GASB 54
3. ARPA Worksheet
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Resolution 2022- June 7, 2022
DRAFT RESOLUTION 2022-
RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS
APPROVING THE FISCAL YEAR (FY) 2022/23 OPERATING BUDGET AND FY 2022/23 –
2026/27 CAPITAL BUDGET; NEW APPROPRIATIONS; OTHER ADJUSTMENTS;
AMERICAN RESCUE PLAN ACT RECOGNITION; EMPLOYEE COMPENSATION ITEMS
CONSIDERED ON JUNE 7, 2022; MINOR CORRECTIONS; AND CARRY-FORWARD
APPROPRIATIONS
WHEREAS, Section 2.30.295(b) of the Los Gatos Town Code requires the Town
Manager to annually prepare and submit a budget to the Town Council and be responsible for
its administration; and
WHEREAS, the Town Manager submitted to the Town Council and Finance
Commission a Proposed Operating Budget for FY 2022/23 on April 18, 2022; and
WHEREAS, the Town Manager submitted to the Town Council and Finance
Commission a Proposed Five-Year Capital Improvement Program for FY 2022/23 – 2026/27 on
April 18, 2022; and
WHEREAS, the Town Council conducted a noticed public hearing on the Proposed
Operating Budget and Capital Improvement Program on May 17, 2022; and
WHEREAS, per Measure A, the Town Council has considered and reviewed the
Finance Commission written recommendations to the Town Council on the said proposed
Budget and Capital Improvement Program during the public hearing on May 17, 2022; and
WHEREAS, per Measures G and A, the Town Council has considered and reviewed
the Finance Commission written recommendations to the Town Council regarding the potential
allocation of Measure G proceeds during its public hearing on May 17, 2022; and
WHEREAS, the Town Council previously allocated residual unallocated Measure G
revenues for budget balancing and $679,443 will be used to balance the FY 2022/23 budget;
and
ATTACHMENT 1
2 of 4
Resolution 2022- June 7, 2022
WHEREAS, the Town Council has determined the use of Measure G proceeds in the
remainder of the forecast (FY 2022/23 - FY 2026/27) to be 50% for operating expenditures and
50% for capital purposes; and
WHEREAS, the estimated FY 2022/23 business license tax revenue increased by
$100,000 based on current trends; and
WHEREAS, the Town Council has determined that to further balance the budget,
the Town should reimburse $902,579 from available Other Post-Employment Benefits (OPEB)
115 Trust assets for retiree pay-as-you go expenses in FY 2022/23.
WHEREAS, the Town Council has determined the use of American Rescue Plan Act
(ARPA) for FY 2021/22 and FY 2022/23 as illustrated in Exhibit B entitled “ARPA Worksheet”
including the allocation of $2.9 Million in ARPA proceeds for capital purposes; and
WHEREAS, the Town Council has determined that a portion of the proceeds of the
ARPA up to the amount of $1,645,281 will be used for Revenue Replacement and balancing the
FY 2022/23 budget; and
WHEREAS, on June 7, 2022, Town Council considered and reviewed the proposed
Budget and Capital Improvement Program making final determinations.
NOW, THEREFORE, BE IT RESOLVED: that the Town Council hereby adopts as the
Operating Budget for the Town of Los Gatos for the 2022/23 fiscal year as depicted in Exhibit A
entitled “Total Town Revenues and Expenditures by Fund” including the first year (FY 2022/23)
of the Town’s Capital Improvement Program budget as contained in the Town’s FY 2022/23 –
2026/27 Capital Improvement Program.
BE IT FURTHER RESOLVED, that the final adopted Budget documents include minor
corrections and approved appropriations for unspent prior year allocations, and that they be
carried forward from prior years in a Reserve for Encumbrances whereby within each fund
there is an amount sufficient to cover approved outstanding encumbrances as of June 30, 2022.
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of
Los Gatos, California, held on the 7th day of June, 2021 by the following vote:
COUNCIL MEMBERS:
3 of 4
Resolution 2022- June 7, 2022
AYES:
NAYS:
ABSENT:
ABSTAIN:
SIGNED:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
DATE: __________________
ATTEST:
TOWN CLERK OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
DATE: __________________
4 of 4
Resolution 2022- June 7, 2022
TOTAL TOWN REVENUES AND EXPENDITURES BY FUND
EXHIBIT A
2022/23 Estimated 2022/23
Proposed Budget Recommended
Budget Revision Budget
REVENUES
General Fund 48,378,548$ 1,626,919$ (1)50,005,467$
Special Revenue Funds 1,775,576 - 1,775,576
Internal Service Funds 4,125,957 - 4,125,957
Capital Project Funds (does not include carryforwards)12,753,575 2,900,000 (2)15,653,575
Successor Agency Funds 3,799,926 - 3,799,926
TOTAL REVENUES 70,833,582$ 4,526,919$ 75,360,501$
OTHER FUNDING SOURCES
Designated One-Time Use of General Fund Reserves 2,350,000 679,443$ 3,029,443 (3)
TOTAL TOWN REVENUES & OTHER FUNDING SOURCES 73,183,582$ 5,206,362$ 78,389,944$
TOTAL TOWN EXPENDITURES, TRANSFERS OUT & CARRYFORWARD APPROPRIATION
General Fund 50,338,548$ 2,306,362$ (4)52,644,910$
Special Revenue Funds 1,705,178 12,246 (4)1,717,424
Internal Service Funds 6,427,499 - 6,427,499
Capital Project Funds (does not include carryforwards)13,081,287 2,900,000 (2)15,981,287
Successor Agency Funds 3,799,752 125 (4)3,799,877
TOTAL TOWN EXPENDITURE & OTHER FUNDING USES 75,352,264$ 5,218,733$ 80,570,997$
GENERAL FUND SOURCE(USE) OF FUND BALANCES 390,000$ 390,000$
OTHER FUNDS SOURCE(USE) OF FUND BALANCES (2,558,682) (2,571,053) (5)
TOTAL SOURCE(USE) OF FUND BALANCES (2,168,682)$ (12,371)$ (2,181,053)$
(1) Additional General Fund Revenues
$902,579 OPEB Trust Reimbursement for Retiree Medical
$624,340 Additional ARPA Proceeds for Revenue Replacement
$100,000 Additional Business License Tax
(2) Additional Transfer to Capital Projects (GFAR)
$2,900,000 General Fund Reimbursement Revenues (ARPA)
(3) Designated One-Time Use of the General Fund Reserves during FY 2022/23
$2,350,000 - Transfer to Capital Projects (GFAR)
$679,443 - Measure G Residual for Operation
(4) General fund Expenditures
$2,318,733 - Increases to Negotioated Salary Increases
(5) Other Funds Source (Use) represents planned one-time uses of Internal Service Funds, Special Revenue
Funds, Trust Funds, and Capital Project Funds primary for infrastructure and equipment investment.
Numbers may differ between exhibits due to rounding.
FY 2020/21 FY 2021/22 FY 2022/23 GRAND
BUDGET ADJ.
ACTUALS ACTUAL/ESTIMATED ESTIMATED TOTAL
ARPA FUNDS REVENUE RECOGNIZED 200,911$ 3,413,961$ 3,614,872$ 7,229,744$
GOV SERVICES (WAIVERS,CUP&ADA,DIRECT GRANTS)200,911 200,911
REVENUE LOSS -GOV SERVICES (PUBLIC SAFETY)3,413,961 3,614,872 7,028,833
200,911$ 3,413,961$ 3,614,872$ 7,229,744$
GENERAL FUND ARPA REPLACEMENT REVENUES AVAILABLE 200,911 3,413,961 3,614,872 7,229,744
LESS APPROVED USES TO BE BUDGETED:
PARKLETS (DOWNTOWN IMPVTS PROJECT)680,000 250,000 930,000
RENT WAIVERS 121,255 341,452 283,756 746,463
CUP/ADA FEE WAIVERS 19,656 27,672 27,672 75,000
DESTINATION MARKETING 55,000 55,000
K-RAILS (DOWNTOWN IMPVTS PROJECT)68,000 68,000
PROMENADES 80,000 120,000 200,000
DIRECT GRANTS 60,000 50,000 110,000
ENHANCED SENIOR SERVICES 500,000 500,000
CAPITAL IMPROVEMENT PROGRAM SUPPORT TRANSFERS 2,900,000 2,900,000
REQUIRED FOR GF BALANCING OF OPERATING REV_EXP - 1,645,281 1,645,281
TOTAL ALLOCATIONS OF GENERAL FUND ARPA REPLACEMENT REVENUES 200,911$ 1,802,124$ 5,226,709$ 7,229,744$
GENERAL FUND ARPA REPLACEMENT REVENUE UNCOMMITTED -$ 1,611,837$ (1,611,837)$ -$
AMERICAN RESCUE PLAN ACT (ARPA) SUMMARY WORKSHEET
EXHIBIT B
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Resolution 2022- June 2, 2022
RESOLUTION 2022-
RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS
APPROVING COMMITMENTS OF FUND BALANCE UNDER GASB 54
WHEREAS, the Governmental Accounting Standards Board (GASB) has issued its
Statement No. 54, Fund Balance and Governmental Fund Type Definitions with the intent of
improving financial reporting by providing fund balance categories that will be more easily
understood and to improve the comparability of governmental fund financial statements; and
WHEREAS, GASB 54 provides that the Town Council of the Town of Los Gatos classify
governmental fund balances as restricted, assigned, or committed fund balances; and
WHEREAS GASB 54 provides that restricted reserves are funds that are restricted for
externally imposed constraints such as legal contracts or state law, assigned amounts are
constrained by the Town’s intent to use them for specific purposes, and committed amounts are
dedicated for specific purposes under constraints and formal action taken by the Town Council
and these committed amounts cannot be used for any other purposes unless the Town Council
of the Town of Los Gatos removes or changes the specific use through the same formal action to
establish the commitment; and
WHEREAS, there exists a Restricted General Fund Pension Reserve in the form of an
IRS 115 Pension Trust; and
WHEREAS, there exists a balance of $690,000 as of June 30, 2022 in the restricted
Pension Reserve; and
WHEREAS, the Town Council of the Town of Los Gatos has established a General
Fund Reserve Policy providing for minimum fund balance dollar target amounts for Budget
Stabilization and Catastrophic Reserve fund balances and outlines policies and procedures for
use and restoration of these balances; and
WHEREAS, there exists an assigned General Fund Compensated Absences Reserve
allocated to fund 50% of all vested hours of sick leave, compensation, and vacation time with the
actual reserve amount to be determined at the close of FY 2021/22; and
ATTACHMENT 2
2 of 4
Resolution 2022- June 2, 2022
WHEREAS, there exists an assigned Capital/Special Projects Reserve to fund key
infrastructure and capital/special projects as identified in the Town’s five-year Capital
Improvement Plan, and/or other Council priorities; and
WHEREAS, there exists an assigned authorized Carry Forward Reserve for materials
and services on approved purchase order and contracts which were issued but not finalized or
fulfilled as of the end of the fiscal year but for which funds will be carried forward to the following
fiscal year. Actual reserve balance will be established at the close of FY 2021/22; and
WHEREAS, in June 2016, the Town Council established the committed Pension/OPEB
Reserve to provide funding toward pension and Other Post-Employment Benefits (OPEB)
unfunded obligations by placing discretionary amounts to the reserve with formal Council action
and transferring available year-end surpluses based on the General Fund Reserve Policy; and
WHEREAS, on November 6, 2018, the Town Council provided direction to establish
an unassigned Surplus Property Revenue General Fund Reserve that any monies received from
the sale of the property located on Winchester Boulevard and any monies received from the sale
of future surplus property be placed in this reserve, and the provisions for the reserve specifically
indicate that Council may, at its discretion, distribute those funds as it deems appropriate; and
WHEREAS, The Town Council established the assigned Sustainability Reserve in FY
2008/09 by closing the Solid Waste Management fund and placing the initial residual balance
dedicated for conservation, recycling, and sustainability; and
WHEREAS, there exists an excess balance of $140,553 as of June 30, 2022 in the
assigned Sustainability Reserve; and
WHEREAS, there exists an assigned Market Fluctuation Reserve that represent
fund balance amounts for unrealized investment gains that have been recorded as investment
income in the financial statements in accordance with the requirements of GASB 31 in the
amount of $438,333, actual reserve balance will be established at the close of FY 2021/22; and
WHEREAS, there exists an assigned Measure G 2018 District Sales Tax Reserve to
track receipt and use of the 1/8 cent district tax funds collected by the Town; and
WHEREAS, the Town Council has determined the use of Measure G accumulated
and future proceeds to be 50% for operating expenditures and 50% for capital purposes; and
3 of 4
Resolution 2022- June 2, 2022
WHEREAS, the residual balance of $679,443 that was set aside for operating
purposes in FY 2020/21 and/or FY 2021/22 should be used for operating expenses in FY 2022/23;
and
WHEREAS, the $2,350,000 transfer from the Capital/Special Project Reserve to the
General Fund Appropriated Reserve provides funding to the five-year capital plan; and
WHEREAS, $2,900,000 of ARPA General Fund Reimbursement Revenue will
transfer from the Capital/Special Project Reserve provides funding for capital project; and
WHEREAS, the Town Council established the assigned Open Space reserve in the
FY 1998/99 to be used for the preservation of open space, connection of open space trails, the
definition of the southern boundary of the Town with passive open space, and protection of
unique natural features; and
WHEREAS, there exists an excess balance of $410,000 as of June 30, 2022 in the
assigned Open Space Reserve; and
WHEREAS, there exists a need for an assigned General Fund Reimbursement
Revenue (ARPA) Reserve to collect the anticipated General Fund ARPA reimbursement proceeds
less Council authorized use of these proceeds for pandemic response including economic
recovery and business support, enhanced senior services, capital program augmentations, and
other one-time uses, the estimated balance of which at June 30, 2022 balance is $1,611,837, with
the actual reserve balance being determined at the close of the FY 2021/22 fiscal year; and
WHEREAS, the General Fund Reimbursement Revenue (ARPA) Reserve is now
established.
NOW, THEREFORE, THE TOWN COUNCIL OF THE TOWN OF LOS GATOS DOES
HEREBY RESOLVE that the following estimated Pension, Budget Stabilization, Catastrophic,
Pension/OPEB, Capital/Special Projects, Compensated Absences; Measure G District Sales Tax,
Surplus Property Revenue, Market Fluctuations, Sustainability, Open Space, and ARPA Reserves
as of June 30, 2022 and as of June 30, 2023 as restricted, assigned, unassigned or formally
committed as follows:
4 of 4
Resolution 2022- June 2, 2022
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of
Los Gatos held on the 7th day of June 2022 by the following vote:
COUNCIL MEMBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN:
SIGNED:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
DATE: __________________
ATTEST:
TOWN CLERK OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
DATE: __________________
Actual
General Fund
Reserves
June 30, 2021
FY 2021/22
Budget, GF
Reserve Policy,
and this
Resolution
Approved
Increase
FY 2021/22
Budget, GF
Reserve
Policy, and
this
Resolution
Approved
(Decrease)
Estimated
General Fund
Reserves
June 30, 2022
FY 2022/23
Budget
Resolution
Approved
Increase
FY 2022/23
Budget
Resolution
Approved
(Decrease)
Estimated
General Fund
Reserves
June 30, 2023
Restricted Fund Balances
Pension -$ 690,000$ -$ 690,000$ 390,000$ -$ 1,080,000$
Committed Fund Balances -
Budget Stabilization 5,460,485 531,081$ - 5,991,566 - - 5,991,566
Catastrophic 5,460,485 531,081 - 5,991,566 - - 5,991,566
Pension/OPEB 300,000 - (300,000) - - -
Assigned Fund Balances - -
Capital/Special Projects 6,965,356 329,258 (1,612,162) 5,682,452 - (2,350,000) 3,332,452
Compensated Absences 1,649,917 - - 1,649,917 - 1,649,917
Open Space 410,000 - - 410,000 - - 410,000
Sustainability 140,553 - - 140,553 - - 140,553
Market Fluctuations 438,333 - - 438,333 - - 438,333
Measure G District Sale Tax 1,730,490 - (1,051,047) 679,443 - (679,443) -
Carryover Encumbrances - - - - - - -
Surplus Property Revenue Reserve 1,200,000 - (1,200,000) - - - -
GF Reimbursement Revenue (ARPA)- 1,611,837 - 1,611,837 - - 1,611,837
Rehab Loan Reserve (Nonspendable) 159,000 - - 159,000 - - 159,000
FY 2020/21 FY 2021/22 FY 2022/23 GRAND
BUDGET ADJ.
ACTUALS ACTUAL/ESTIMATED ESTIMATED TOTAL
ARPA FUNDS REVENUE RECOGNIZED 200,911$ 3,413,961$ 3,614,872$ 7,229,744$
GOV SERVICES (WAIVERS,CUP&ADA,DIRECT GRANTS)200,911 200,911
REVENUE LOSS -GOV SERVICES (PUBLIC SAFETY)3,413,961 3,614,872 7,028,833
200,911$ 3,413,961$ 3,614,872$ 7,229,744$
GENERAL FUND ARPA REPLACEMENT REVENUES AVAILABLE 200,911 3,413,961 3,614,872 7,229,744
LESS APPROVED USES TO BE BUDGETED:
PARKLETS (DOWNTOWN IMPVTS PROJECT)680,000 250,000 930,000
RENT WAIVERS 121,255 341,452 283,756 746,463
CUP/ADA FEE WAIVERS 19,656 27,672 27,672 75,000
DESTINATION MARKETING 55,000 55,000
K-RAILS (DOWNTOWN IMPVTS PROJECT)68,000 68,000
PROMENADES 80,000 120,000 200,000
DIRECT GRANTS 60,000 50,000 110,000
ENHANCED SENIOR SERVICES 500,000 500,000
CAPITAL IMPROVEMENT PROGRAM SUPPORT TRANSFERS 2,900,000 2,900,000
REQUIRED FOR GF BALANCING OF OPERATING REV_EXP - 1,645,281 1,645,281
TOTAL ALLOCATIONS OF GENERAL FUND ARPA REPLACEMENT REVENUES 200,911$ 1,802,124$ 5,226,709$ 7,229,744$
GENERAL FUND ARPA REPLACEMENT REVENUE UNCOMMITTED -$ 1,611,837$ (1,611,837)$ -$
AMERICAN RESCUE PLAN ACT (ARPA) SUMMARY WORKSHEET
ATTACHMENT 3
This Page Intentionally Left Blank
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: 19
DATE: June 2, 2022
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Approve a Labor Agreement Between the Town of Los Gatos and the Police
Officers’ Association and Authorize the Town Manager to Execute the
Memorandum of Understanding
RECOMMENDATION:
Staff recommends that the Town Council approve a Labor Agreement Between the Town of Los
Gatos and the Police Officers’ Association (POA) and authorize the Town Manager to execute
the Memorandum of Understanding (Attachment 1).
BACKGROUND:
In accordance with the Town’s Employer-Employee Relations Resolution No. 1974-41,
representatives of the Town and POA have met and conferred in good faith and within the
scope of representation in an effort to reach agreement for a successor Memorandum of
Understanding (MOU). The revised agreement will be distributed and posted on June 3, 2022
as an Addendum. The MOU is a labor agreement that identifies specific terms and conditions of
employment applicable to the employees represented by that agreement.
DISCUSSION:
The Town’s current agreement with POA expired on September 30, 2021. On June 11, 2021,
the Town and POA began negotiating for a successor agreement. A tentative agreement for a
three-year term was reached in May which POA membership ratified on May 11, 2022.
Major provisions of the agreement are:
1.Term: October 1, 2021 to June 30, 2024
Page 294 ATTACHMENT 2
PAGE 2 OF 3
SUBJECT: Approve a Labor Agreement Between the Town of Los Gatos and the Police
Officers’ Association and Authorize the Town Manager to Execute the
Memorandum of Understanding
DATE: June2, 2022
DISCUSSION (continued):
2. Salary:
a. Effective the first full pay period of July 2022 or the first full pay period after
Council approval of the MOU, whichever is later, all employees shall receive a
one-time non-pensionable lump sum payment of $5,000.
b. Effective the first full pay period after Council approval of this MOU, or as soon
as practical thereafter, the salary rate for all classifications shall be increased by
2% (effective June 12, 2022) (Attachment 1).
c. Effective the first full pay period in July 2022 (effective July 10, 2022), the salary
rate for all classifications shall be increased by 5.25% (Attachment 2).
d. The parties agree that the combined 2022 increases represent a 3% cost of living
adjustment, a market increase of 3.15% and an additional 1.1% to address the
passage of time since October 2021.
e. Effective in the first full pay period of July 2023, the Town will provide a 3% cost
of living increase.
3. Pandemic Related Bonus: Effective the first full pay period of July 2022, or the first full
pay period after Council approval, whichever is later, all employees who worked for the
Town in 2021, who are employed at the Town as of the last day of the pay period will
receive a one-time, lump sum payment of $2,500.
4. Juneteenth Holiday: Effective the first pay period of July 2022 or the first pay period
after Council approval of the MOU, whichever is later, in recognition of Juneteenth,
holiday in lieu pay will be increased by 0.4%. to total 4.4%. Effective the first pay period
of July 2022 or the first pay period after Council approval of the MOU, whichever is
later, employees will receive a one-time non-pensionable lump sum payment of
$1,000.00 for foregoing the Juneteenth holiday prior to 2023.
The Town and POA have also agreed to various MOU language updates. The red-lined MOU will
be distributed and posted on Friday, June 3, 2022 as an Addendum. These updates clarify
existing language, delete obsolete language, and ensure compliance related to the Town’s
contract for retirement and medical benefits provided under the California Public Employees’
Retirement System (CalPERS) and the Public Employees’ Medical and Hospital Care Act
(PEMHCA).
CONCLUSION:
The POA agreement has been prepared within the parameters provided to Town’s negotiators
by the Town Council and has been ratified by the POA membership. It is recommended that
the proposal be approved, and the Town Manager be authorized to execute the MOU.
Page 295
PAGE 3 OF 3
SUBJECT: Approve a Labor Agreement Between the Town of Los Gatos and the Police
Officers’ Association and Authorize the Town Manager to Execute the
Memorandum of Understanding
DATE: June2, 2022
FISCAL IMPACT:
The anticipated FY 2022/23 impact for the 3.00% COLA ($252,000), 3.15% market rate
adjustment ($265,000), and the 1.1% COLA ($85,000) for a total 7.25% salary increase is
$602,000. The anticipated fiscal impact of a $1,000 non-pensionable one-time payment, the
one-time, lump sum pandemic related bonus payment of $2,500, and the $5,000 non-
pensionable FY 2021/22 make whole payment in FY 2022/23 is $289,000.
The total cost impact for FY 2022/23 will be absorbed in the Town’s existing operating budget.
Funding to support the FY 2023/24 ongoing cost each year 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. Salary Schedule for POA effective June 12, 2022
2. Salary Schedule for POA effective July 10, 2022
Page 296
Class Code Classification Title Range Step Hourly Rate
2520 Police Sergeant (Prior) 04-0721 1 $66.43
Appointment before 03/01/2015 2 $69.75
3 $73.24
4 $76.90
5 $80.75
Class Code Classification Title Range Step Hourly Rate
2521 Police Sergeant (New) 05-0721 1 $66.43
Appointment after 03/01/2015 2 $69.75
3 $73.24
4 $76.90
Class Code Classification Title Range Step Hourly Rate
7500 Police Corporal 03-0715 1 $55.12
2 $57.88
3 $60.77
4 $63.81
5 $67.00
Class Code Classification Title Range Step Hourly Rate
7510 Police Officer 02-0711 1 $52.50
2 $55.13
3 $57.89
4 $60.78
5 $63.82
Class Code Classification Title Range Step Hourly Rate
9519 Police Trainee *01-0710 1 $49.88
*95% of Step 1 of Police Officer Classification (Provisional Employee with Misc PERS)
Reflects General Increase of 2%.
Town of Los Gatos POA Classifications
Salary Schedule for Fiscal Year 2021/22
Effective June 12, 2022
Adopted by Town Council June 7, 2022
POA 2%1 Approved 6/7/2022
ATTACHMENT 1
Page 297
Class Code Classification Title Range Step Hourly Rate
2520 Police Sergeant (Prior) 04-0721 1 $69.92
Appointment before 03/01/2015 2 $73.42
3 $77.09
4 $80.94
5 $84.99
Class Code Classification Title Range Step Hourly Rate
2521 Police Sergeant (New) 05-0721 1 $69.92
Appointment after 03/01/2015 2 $73.42
3 $77.09
4 $80.94
Class Code Classification Title Range Step Hourly Rate
7500 Police Corporal 03-0715 1 $58.01
2 $60.91
3 $63.96
4 $67.16
5 $70.52
Class Code Classification Title Range Step Hourly Rate
7510 Police Officer 02-0711 1 $55.26
2 $58.02
3 $60.92
4 $63.97
5 $67.17
Class Code Classification Title Range Step Hourly Rate
9519 Police Trainee *01-0710 1 $52.50
*95% of Step 1 of Police Officer Classification (Provisional Employee with Misc PERS)
Reflects General Increase of 5.25%.
Town of Los Gatos POA Classifications
Salary Schedule for Fiscal Year 2022/23
Effective July 10, 2022
Adopted by Town Council June 7, 2022
POA 5.25%1 Approved 6/7/2022
ATTACHMENT 2
Page 298
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: 19
ADDENDUM
DATE: June 3, 2022
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Approve a Labor Agreement Between the Town of Los Gatos and the Police
Officers’ Association and Authorize the Town Manager to Execute the
Memorandum of Understanding
REMARKS:
This Addendum transmits the draft Memorandum of Understanding (see Attachment 3).
Attachments Distributed with Staff Report:
1. Salary Schedule for POA effective June 12, 2022
2. Salary Schedule for POA effective July 10, 2022
Attachment Distributed with this Addendum:
3. Draft Memorandum of Understanding
Page 299
10096528.1 LO007-005 -6/2/22
TOWN OF LOS GATOS
AND
LOS GATOS POLICE OFFICERS’ ASSOCIATION
MEMORANDUM OF UNDERSTANDING
October 1, 202118 – September June 30, 20241
ATTACHMENT 3Page 300
10096528.1 LO007-005 -6/2/22
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Page 301
10096528.1 LO007-005 -6/2/22
MEMORANDUM OF UNDERSTANDING
BETWEEN
THE TOWN OF LOS GATOS
AND
THE LOS GATOS POLICE OFFICERS ASSOCIATION
THIS AGREEMENT IS ENTERED INTO AS OF October 1, 202118, BETWEEN THE TOWN OF LOS GATOS,
HEREINAFTER REFERRED TO AS THE "TOWN", AND THE LOS GATOS POLICE OFFICERS ASSOCIATION,
HEREINAFTER REFERRED TO AS "POA".
Pursuant to Town Resolution 1974-41 of the Town of Los Gatos and Section 3500 et. seq. of the Government
Code, the duly authorized representatives of the Town and POA, having met and conferred in good faith
concerning the issues of wages, hours, and terms and conditions of employment, as herein set forth, declare
their agreement to the provisions of this Memorandum of Understanding.
FOR THE TOWN: FOR POA:
Laurel Prevetti, Town Manager
______________________________________
Bill HoytBryan Paul, PresidentPolice Corporal
Arn Andrews, Assistant Town Manager
______________________________________
Lisa VelascoSalina Flores, Human Resources
Director
______________________________________
Donna WilliamsonLisa S. Charbonneau,
Liebert Cassidy Whitmore
Kevin Elliott, Police Sergeant
______________________________________
Kevin Baughn, Police Officer
______________________________________
John Alldredge, Police Officer
APPROVED AS TO FORM:
______________________________________
Robert SchultzGabrielle Whelan
Town Attorney
______________________________________
Peter Hoffmann, Rains Lucia Stern St. Phalle
Silver, PCAttorney for POA
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Page 304
Town of Los Gatos Los Gatos Police Officers’ Association October 1, 202118 – September June 30, 20241
10096528.1 LO007-005 -6/2/22
Preamble ..................................................................................................... 1
Term ..................................................................................................... 1
1. Employer-Employee Relations ............................................................... 1
2. Savings Clause ........................................................................................ 1
3. Payroll Deduction .................................................................................. 1
4. Non-Discrimination ................................................................................ 2
4.1 General Provisions Regarding Americans with Disabilities Act ... 2
5. Salary ..................................................................................................... 2
5.1 Intent............................................................................................ 2
5.2 Effective 2018 Upon Approval ..................................................... 2
5.3 Effective 20192022 .................................................................... 32
5.4 Effective 20202023 .................................................................. 322
5.5 Market EquitySalary Range ........................................................ 22
5.65 Salary RangeOne-Time Lump Sum ........................................... 322
5.76 Pandemic Related Bonus ............................................................. 3
6. PERS Benefits ......................................................................................... 3
6.1 Town Contribution ....................................................................... 3
6.12 PERS 3% At 50 Retirement Option Classic Members ................. 43
6.23 PERS 2.7% at 57 Retirement Option New Members ................. 43
7. Education Incentive Pay ...................................................................... 43
7.1 Four-year Degree Incentive ....................................................... 43
7.2 Grandfather ClauseTwo-year Degree Incentive Pay .................... 4
7.3 Commencement of Educational Incentive Pay ......................... 54
7.4 Re-Opener .................................................................................. 54
8. POST Certification Pay ……………………………………………………………………… 54
9. Special Pays .......................................................................................... 54
9.1 Special Assignment Pay.............................................................. 54
9.2 Bilingual Pay ............................................................................... 65
9.3 Canine Pay .................................................................................. 65
9.4 FTO Training Premium ............................................................... 76
9.5 Trailing Canine Pay .................................................................... 76
9.6 Posting for Special Assignments………………………………………………..7
10. Acting Sergeant Pay ............................................................................. 86
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11. Reimbursement of Expenses ............................................................... 86
12. Tuition Reimbursement ....................................................................... 86
13. Health and Welfare Benefits and Rate of Town Contribution............. 86
13.1 Cafeteria Plan ............................................................................. 86
13.2 Dental ......................................................................................... 87
13.3 Medical ...................................................................................... 97
13.4 Vision.......................................................................................... 97
13.5 Cash-In-Lieu Plan ........................................................................ 97
13.6 Supplemental Health and Welfare Benefits .............................. 98
14. Retiree Health .................................................................................... 108
14.1 Health Reimbursement AccountRetiree Health Benefit for Eligible Retirees Hired On or
Before October 1, 2018…………………………………………………………….108
14.2 Retiree Health Benefit for Eligible Retirees Hired After October 1,
2018…………………………………………………………………………………………..11
15. Uniforms ............................................................................................ 129
16. Mileage Reimbursement ................................................................... 129
17. Payroll Periods ................................................................................... 129
18. Paychecks........................................................................................... 129
19. Deferred Compensation .................................................................... 120
20. Overtime .......................................................................................... 1210
21. Duty Extension ................................................................................. 1310
22. Call Back ........................................................................................... 1310
23. Vacation Schedule ........................................................................... 1311
23.1 Vacation and Overtime Cash-Out ....................................................... 11
24. Vacation and Overtime Compensatory Time Off Cash-Out………………..14
23.25. Shift and Vacation Selection Procedures ............................... 1411
24.26. Holidays and Holiday Pay ....................................................... 1411
25.27. Personal Leave ....................................................................... 1512
26.28. Sick Leave ............................................................................... 1512
27.29. Sick Leave Cash-Out Program ................................................ 1512
298.1 Annual Sick Leave Cash-Out for Employees Hired Prior to October 1, 2018 152
298.2 Sick Leave Cash-Out Upon Termination for Employees Hired Prior to October 1, 2018 152
298.3 Unused Sick Leave Upon Retirement..................................... 1613
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Town of Los Gatos Los Gatos Police Officers’ Association October 1, 202118 – September June 30, 20241
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28.30. Military Leave......................................................................... 1613
29.31. Bereavement/Compassion Leave .......................................... 1613
30.32. Leave Without Pay ................................................................. 1613
31.33. Accrual of Benefits ................................................................... 174
32.34. Workers’ Compensation .......................................................... 174
33.35. Jury Duty .................................................................................. 174
34.36. Outside Employment ............................................................... 174
35.37. Residency Requirement ........................................................... 174
36.38. Layoff Policy ............................................................................. 174
37.39. Vehicles .................................................................................... 174
38.40. Promotions............................................................................... 184
39.41. Probationary Period ................................................................. 185
40.42. Performance Evaluations ......................................................... 185
41.43. Reinstatement ......................................................................... 195
42.44. Re-employment ....................................................................... 195
43.45. Grievance Procedures .............................................................. 196
44.46. Attendance............................................................................. 2017
45.47. Completeness of MOU ........................................................... 2017
46.48. Association Notification or Communications ........................ 2017
49. Labor-Management Committee………………………………………………………..20
47.50. Catastrophic Time Bank ......................................................... 2017
48. Reopener ............................................................................................. 17
49.51. Me Too Clause ....................................................................... 2117
Update of Personnel Rules .................................................................. 17
Salary Schedule Exhibit A
Page 307
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Page 1
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Town of Los Gatos and Los Gatos Police Officers Association
Comprehensive Memorandum of Understanding
On Salaries, Fringe Benefits and Working Conditions
Preamble
The authorized representatives of the Town of Los Gatos, hereinafter referred to as the "Town" and the authorized
representatives of the Town of Los Gatos Police Officers Association hereinafter referred to as "Association" do jointly
accept and agree to all the terms and conditions of employment set forth in this comprehensive memorandum of
understanding pursuant to Town Resolution 1974-41 of the Town of Los Gatos.
This understanding shall apply to represented employees assigned to those classifications listed on Exhibit A when
classifications are created which fall under the representation of POA, this understanding shall also apply.
The terms and conditions of employment set forth in this understanding have been discussed in good faith by the
authorized representatives of the Town and the authorized representatives of the Police Officers Association. They
agree to recommend acceptance by the employees of all terms and conditions set forth herein. Following said
acceptance by the Association, authorized representatives of the Town agree to recommend to the Town Council that
all terms and conditions set forth herein be approved by resolution. Upon adoption of said resolution, all terms and
conditions so incorporated shall become effective without further action by either party.
Term
The term of this Memorandum of Understanding shall be three years, commencing on October 1, 202118, and
terminating on September June 30, 20241.
Section 1. Employer-Employee Relations
The Association recognizes the existence of Town Resolution 1974-41, and its successor if any, during the term of this
MOU. Recognition of any amendments to this resolution does not imply POA has agreed to the changes.
Section 2. Savings Clause
If any provision or the application of any provision of this agreement as implemented should be rendered or declared
invalid by any court action or decree or by reasons of any preemptive legislation, the remaining sections of this
agreement shall remain in full force and effect for the duration of this agreement
Section 3. Payroll Deduction
Any employee may sign and deliver to the Association an authorization for payroll deduction of membership dues. The
Town agrees to remit to the Association all monies deducted accompanied by a list of workers for whom such
deductions have been made and indicating any changes in personnel from the list previously furnished.
The Association shall certify in writing to the Town any changes in the amount of membership dues. The Town shall
not be obligated to put into effect any new, changed, or discontinued deduction until the pay period commencing
thirty (30) days or longer after such submission.
The Association shall indemnify and hold harmless the Town against any and all suits, claims, demands, and liabilities
that may arise out of, or by reason of, any action or omission of the Town in complying with this Section.
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Section 4. Non-Discrimination
The Town and Association agree that all provisions of this agreement shall be applied equally to all employees covered
herein without favor or discrimination because of race, religious creed, color, sex (including pregnancy, childbirth, and
related medical conditions), age (over 40), gender, gender identity, gender expression, sexual orientation, national
origin, ancestry, political or religious affiliation, Association membership or activity on behalf of the Association, marital
status, military or veteran status, or physical disability, mental disability, medical condition, or genetic information or
any other basis prohibited by applicable federal, State or Town law. Association and Town support equal employment
opportunity in hiring, and will support all State and Federal regulations regarding equal employment opportunity.
4.1 General Provision regarding Americans with Disabilities Act
A. Because the ADA requires accommodations for individuals protected under the Act, the Association recognizes
the Town's obligation to comply with all provisions of the ADA on a case-by-case basis.
B. The Association recognizes that the Town has the legal obligation to meet with the individual employee to be
accommodated before any adjustment is made in working conditions. The Association will be notified of
these proposed accommodations.
C. Any accommodation provided to an individual protected by the ADA shall not establish a past practice.
Section 5. Salary
5.1 Intent
It is the intent of the Town to maintain salaries and benefits at a level that attracts and retains quality employees. The
parties agree that surveys of the wages and benefits of police officers performing comparable work for comparable
agencies provide information useful in ensuring that the Town continues to meet this goal.
5.2 Effective 2018
Effective in the first full pay period of October 2018 the Town will provide a two and a half percent (2.5%) salary
adjustment for all bargaining unit members.
5.3 Effective 2019
Effective in the first full pay period of October 2019 the Town will provide a two and one-half percent (2.5%) salary
increase for all bargaining unit members. Effective in the first full pay period of October 2019 bargaining unit members
shall receive an additional increase of 1.5%.
5.4 Effective 2020
The parties agree to re-open on the subject of wages only.
5.5 Market Equity
Effective in the first full pay period in October 2018 market equity adjustments as follows:
Police Officer - 5.0%
Corporal – 5.0%
Sergeant – 5.5%
5.2 Effective Upon Approval
Effective the first full pay period after Council approval of this MOU, or as soon as practical thereafter, the salary rate
for all classifications shall be increased by two percent (2%).
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5.3 Effective 2022
Effective the first full pay period in July 2022, the salary rate for all classifications shall be increased by five and one-
quarter percent (5.25%).
The parties agree that the combined 2022 increases represent a three percent (3%) cost of living adjustment, a market
increase of three and fifteen hundredths percent (3.15%), and an additional one and one tenths percent (1.1%) to
address the passage of time since October 2021.
5.4 Effective 2023
Effective the first full pay period in July 2023, the salary rate for all classifications shall be increased by three percent
(3%).
5.56 Salary Range
Effective October 1, 2014, the Sergeant rank became a 4-step range. Any new Sergeant appointed after that date is
appointed to the 4-step range. Acting Sergeant pay will be paid at the top of the new range.
5.65 One-Time Lump Sum
Effective the first full pay period of July 2022 or the first full pay period after Council approval of the MOU, whichever is
later, all employees shall receive a one-time non-pensionable lump sum payment of five thousand dollars ($5,000).
5.76 Pandemic Related Bonus
Effective the first full pay period of July 2022 or the first full pay period after Council approval of the MOU, whichever is
later, all employees who worked for the Town in 2021 who are employed at the Town through as of the last day of the
pay period the bonus is paid, will receive a one-time, non-pensionable lump sum payment of $2,500.
Section 6. PERS Benefits
6.1 Town Contribution
Effective December 13, 1998, the Town ceased its participation in the Public Employee Retirement System "Employer
Paid Member Contributions" (EPMC) provision. Concurrently, the Town began paying in salary to the employees
covered by this memorandum of understanding the equivalent dollar amount of the former EPMC (9% of salary).
These employees were then responsible for making their own member contributions. The POA acknowledged that
implementation of this change had a cost impact to the Town which was equivalent to approximately 1.6% of total
compensation.
Substantially concurrent with the adoption of the 1998-2000 memorandum of understanding, the Town Council
adopted a Resolution materially the same as that recommended by the Public Employee Retirement System to
implement the provisions of 414 (h) (2) of the Internal Revenue Code (IRC). The POA accepted the terms of this
Resolution and acknowledged that the Resolution will apply to all current and future members of the POA during the
term of this agreement.
The Town contracts with the California Public Employees’ Retirement System (CalPERS or PERS) to provide Town
employees with retirement benefits.
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6.21 PERS 3% at 50 Retirement Option Classic Members
For employees that are not “New Members” as defined under Government Code section 7522.04(f), commonly
referred to as “Classic Members,” hired with reciprocity or CalPERS membership prior to 1/1/13 without a break in
CalPERS service of six months or more or hired and enrolled in CalPERS membership prior to 9/15/12, the Town
provides the Effective June 24, 2001, the Town amended its contract with the California Public Employees’ Retirement
System to include the 3% at 50 option for members of the bargaining unit. This retirement formula is applicable to
employees hired prior to January 1, 2013 or Classic Members (as defined in the California Public Employees’ Pension
Reform Act or 2013 (PEPRA) and CalPERS guidance) hired on or after January 1, 2013 with reciprocity in the PERS
retirement system.
The Town’s contract with CalPERS for the 3% at 50 option also includes the following optional benefits:
▪ Single Highest Year
▪ 1959 Survivor Benefit Level 4
▪ Conversion of Unused Sick Leave to Service Credit
Effective October 1, 2019 or as soon as administratively feasible following that date, Classic Members will contribute
123% more towards PERS (3% more than required by statute) in accordance with the requirements of Government
Code section 20516(a).
6.3 PERS 2.7% at 57 Retirement Option for New Member Employees Hired on or
After January 1, 2013
For employees hired on or after January 1, 2013, who meet the definition of New Member under Government’t Code
7522.04(f), the Town will provides the 2.7% at 57 retirement benefit.
The Town’s contract with CalPERS for the 2.7% at 57 option also includes the following optional benefits:
• For employees hired on or after January 1, 2013 will use the 36-month final average
compensation (Gov’t Code 20037).
• 1959 Survivor Benefit Level 4
• Conversion of Unused Sick Leave to Service Credit
New Members contribute toward CalPERS hired on or after January 1, 2013 shall pay an amount that is equal to one
half (1/2) the normal cost of his/herhis/her/their CalPERS pension as determined annually by CalPERS, or the current
contribution rate of similarly situated employees, whichever is greater (Government’t Code 7522.30(c)).
Employees eligible for this retirement formulae retain the option of conversion of unused sick leave to service credit.
Section 7. Education Incentive Pay
7.1 Four-Year Degree Incentive Pay
Two and one-half percent (2.5%) of base salary shall be paid for any member who possesses a four-year degree.
The Town shall pay two and one-half percent (2.5%) of base salary to any member who possesses a four-year degree
that enhances their ability to do their job. Employees must submit proof of the four-year degree to Human Resources
in order to be eligible for the payment.
7.2 Grandfather ClauseTwo-Year Degree Incentive Pay
For employees hired prior to June 30, 2008, the Town shall pay two and one-half percent (2.5%) of base salary to any
member who possesses a two-year degree or meets the minimum requirements to obtain an Associates of Arts Degree
that enhances their ability to do their job. Employees must submit proof of the two-year degree or completion of the
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minimum requirements to obtain an Associates of Arts Degree in a related field to Human Resources in order to be
eligible for the payment. The incentive pay for a two-year degree does not stack with incentive pay for a four-year
degree; the maximum education incentive pay any member may receive under this section 7 is two and one-half
percent (2.5%) of base salary
7.2.1
For employees hired prior to January 1, 2008, who qualify to participate in the Town’s Education Incentive program
prior to July 1, 2008; served a minimum of fifteen years with the Town of Los Gatos; and possess an Associates of Arts
Degree or meet the minimum requirements to obtain an Associates of Arts Degree in a related field, shall be eligible for
an additional 2.5% increase in base salary effective the first full pay period following their fifteenth anniversary date
from his/her hire date (members with a four year degree are not eligible for this benefit).
7.2.2
For employees who are in the process of being hired prior to January 1,2008; who qualify to participate in the Town’s
Education Incentive program within six months of hire; served a minimum of fifteen years with the Town of Los Gatos;
and possess an Associates of Arts Degree or meet the minimum requirements to obtain an Associates of Arts Degree in
a related field, shall be eligible for an additional 2.5% increase in base salary effective the first full pay period following
their fifteenth anniversary date from his/her hire date (members with a four-year degree are not eligible for this
benefit).
7.2.3
Eliminate Retention Incentive pay for ten and fifteen years for members hired after January 1, 2008.
7.3 Commencement of Educational Incentive Pay
Educational Incentive Pay is effective the first full pay period after the employee provides Human Resources with
sufficient proof that the employee has obtained the requisite degree or education for Educational Incentive Pay.
7.4 Re-Opener
If the law changes on the education requirements for California police officers, the Town has the right to reopen this
section 7.
Section 8. POST Certificate Pay
Qualified employees shall receive one of the following payment amounts in accordance with Exhibit A:
A. Employees in their represented classifications who have been awarded an Intermediate POST Certificate: An
additional 5% of base salary.
B. Employees in their represented classifications who have been awarded an Advanced POST Certificate: An
additional 2.5% of base salary for a total of 7.5%.
Section 9. Special Pays
Officers are limited to one special assignment pay or canine pay. Officers who qualify for bilingual pay may receive
bilingual pay in addition to a special assignment pay or canine.
9.1 Special Assignment Pay
Town shall provide a 5% special assignment pay to Association represented personnel who are routinely and
consistently assigned as follows:
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9.1.1
Motorcycle Patrol Premium- for unit members who operate and/or patrol on motorcycle.
9.1.2
School Resource Officer Duty Pay – For unit members who are assigned to School Resource Officer duty.
9.1.3
Detective Division Premium- for unit members who are routinely assigned to a detective or investigative division.
9.1.4
Police Administrative Officer-for unit members who are assigned to police administration to provide support for the
Police Chief and Command Staff in the operation of the Police Department.
Assignment for special pay purposes shall be done using Town Personnel Action Forms.
Association represented personnel removed from specialty positions on a temporary basis for departmental purposes
and through no fault or request of their own shall continue to receive specialty pay for a maximum of 30 calendar days.
The parties agree that special assignment premiums are pensionable as determined by CalPERS.
9.2 Bilingual Pay
The Town will pay an additional 2.5% above base pay for employees who are routinely and consistently assigned to
communicate in languages other than English. Bilingual pay will be for Spanish, Russian, Arabic, Chinese, Vietnamese
and any other language designated by the Chief of Police. The Town will determine the qualifying criteria including the
test and the application to the specific job assignment.
9.3 Canine Pay
Officers who are routinely and consistently assigned to handle, train and board a canine in accordance with this section
are eligible for Canine Officer/Animal Premium. Officers assigned to the canine unit are required to care for, train,
groom, feed, and bathe their assigned dog. The parties agree that two hours per week is a reasonable amount of time
to care for the canine. The Town compensates Canine officers a total of five (5) hours per week for additional time
spent caring for the canine. Two (2) hours of this additional time is outside of the regular shift. The remaining three (3)
hours is provided as release time.
Call-back as defined in the MOU shall not apply for the purposes of caring for the dog. Compensation provided during
the additional paid time and release time is mutually acknowledged to compensate for additional time required to care
for, train, groom, feed, and bathe the assigned canine.
9.3.1 Canine Pay Premium
Compensation for the 2 hours outside of the regular shift is paid as a 5% premium on all hours worked.
9.3.2 Canine Release Time
Canine Officers on a 4-10 schedule shall be released in a paid capacity for 0.75 hours prior to the “normal” conclusion
of each regularly scheduled shift (4 shifts per week equaling 3 hours per week) for the normal care of the canine,
including but not limited to training, grooming, feeding, bathing, and routine veterinarian care.
Canine Officers on a 12-hour schedule shall be released in a paid capacity for 1.0 hours prior to the “normal” conclusion
of each regularly scheduled shift (3 shifts per week equaling 3 hours per week) for the normal care of the canine,
including but not limited to training, grooming, feeding, bathing, and routine veterinarian care.
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In the event that a Canine Officer is not released in sufficient time prior to the conclusion of his or her shift, the officer
will be paid for additional time after the end of shift to compensate them for 0.75 or 1.0 hours of Canine care time as
appropriate. The Town recognizes that this may result in overtime.
9.3.3 Commute Time with Canine
Commute time with the canine shall not be considered working time. If there is an event requiring emergency
veterinarian care, travel to the veterinarian will be compensable work time.
9.4 Field Training Officer Training Premium
In addition to the above special pays, officers assigned by the Chief of Police as Field Training Officers shall also receive
the 5% incentive whenever providing training to a Department member for which a training observation report is
required or when completing special assignments directly related to the Field Training Officer Program with prior
approval of the Chief of Police. Attendance at FTO meetings, training provided at briefings, or other training provided
in conjunction with the Department’s annual Advanced Officer Training or other on-going general training to
Department members does not qualify for the 5% incentive.
9.5 Trailing Canine Pay
Officers that personally own a certified and properly equipped Trailing Canine and have been identified as a
Department Trailing Canine Handler will provide the Los Gatos-Monte Sereno Police Department with the use of the
Trailing Canine when tracking, trailing and related canine services are required. Deployment of the Trailing Canine
Team may be requested for location of missing persons, fugitive apprehension and evidence recovery. With the
approval of the Chief of Police, the Trailing Canine Team may also be deployed to other jurisdictions. Trailing Canine
Handlers are responsible for the maintenance and care of the canine, in addition to recurring in-service training, at no
cost to the Town.
9.5.1 Trailing Canine Premium
Officers will receive a five percent (5%) specialty pay premium only during approved deployment and use of services
and will submit an approved time sheet noting the specialty pay during the pay period in which the services were
rendered. Special assignment premiums are pensionable as determined by CaIPERS.
The Town will reimburse Officers up to, but not to exceed, $150.00 per month premium for private pet insurance.
Officers will submit receipts for payment on a quarterly basis to Finance — Accounts Payable for reimbursement. The
Town will also reimburse Officers for insurance deductible payments up to $250.00 per injury/illness incurred to canine
while deployed for use on Town assignments.
9.5.2 Trailing Canine Training
Trailing Canine Handlers will maintain required recurring in-service training and associated records, within the scope of
policies and procedures of the Los Gatos-Monte Sereno Police Department. Officers will be reimbursed for annual
canine recertification course registration fees not to exceed $800.00 per year. Officers are responsible for cost of
travel, lodging, and per-diem related to the annual re¬certification course.
Up to 40-hours of paid release time annually will be allowed to attend re-certification course. The approved re-
certification course constitutes scheduled Department training for which the release time will be honored.
9.6 Posting for Special Assignments
Any opening for a special assignment shall be posted for a minimum of two weeks, unless extraordinary circumstances
warrant otherwise.
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Section 10. Acting Sergeant Pay
Police Officers working as acting supervisors shall be compensated at Step "4" of the Sergeant’s rate of pay. Town shall
periodically review the actual time use of acting supervisor designations in order to determine the necessity of
additional permanent supervisory personnel.
Section 11. Reimbursement of Expenses
The Town shall pay claims for reimbursement within 30 days following the complete and accurate submission of claims
as approved by the Finance Director.
Section 12. Tuition Reimbursement
Town will reimburse 100% of the cost of books, university/school fees (except parking) and tuition. Tuition and school
fees shall be reimbursed up to the full-time rates of San Jose State University at applicable Undergraduate or Graduate
rates per school term. The maximum reimbursement per employee per fiscal year is equivalent to two (2) semesters.
The reimbursement shall be only for courses that are directly related to the employee’s position as determined by the
Town Manager, including general education courses that are generally related to attainment of a job-related degree or
certification. General education courses not generally related to the employee’s position will not be eligible for
reimbursement. Reimbursement shall be taxed pursuant to the State and Federal Regulations.
Application for Tuition Reimbursement shall be made to the Town before the course begins. Prior to reimbursement of
costs, all course work must be completed with a passing grade of “C” or equivalent when numerical score or pass/fail is
given. Individuals requesting reimbursement must currently be employed by the Town to be eligible for
reimbursement.
Any employee who terminates employment with the Town within one year from the completion of a class or classes,
for which tuition reimbursement was paid, shall refund all tuition paid under this provision, unless required to attend
by the appointing authority.
Section 13. Health and Welfare Benefits and Rate of Town Contribution
The Town contracts with CalPERS for the purpose of providing employees and their eligible dependents with medical
insurance benefits. During calendar year 2018, the Town will pay a maximum contribution of $133 per month to
CalPERS for each eligible active employee towards the purchase of medical insurance for those employees who enroll
in and receive such insurance through the Town. Beginning January 1, 2019, tThe Town’s maximum monthly
contribution for each eligible active employee shall be equal to the minimum employer contribution required under
Public Employees’ Medical and Hospital Care Act (PEMHCA), currently $149 per month, as may be adjusted by CalPERS
from year to year.
13.1 Cafeteria Plan
During the term of the MOU, the Town agrees to maintain a Cafeteria Plan, pursuant to Section 125 of the Internal
Revenue Code, for the purpose of providing eligible active employees with access to various health and welfare
benefits. Benefits available through the Cafeteria Plan include medical insurance, dental insurance, vision insurance
and life insurance benefits.
13.2 Dental
Employees choosing this option instead of Cash-in-Lieu will be provided 100% of the Delta Dental DPO Plan premium
less a $15.00 employee contribution. If the premium cost of the dental plan exceeds the Town contribution, the
employee shall pay through payroll deductions the difference between the monthly premium and the amount
contributed by the Town. The Town will pay 100% of the premium for employees choosing to participate in the
DeltaCare USA Plan.
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13.3 Medical
The Town will provide active employees with a medical allowance equal to 100% of the cost of the Kaiser Bay Area
Medical Insurance Program premium offered by the Public Employees’ Retirement System Health Benefit Medical
Program at for the Employee Only level of participation. for all active employees. For dependents, the Town will pay
90% of the difference between Kaiser Employee Only and Kaiser level of participation (Employee Plus One or Employee
Family, depending on family status). If the employee chooses medical coverage under a program more expensive than
Kaiser Bay Area, the employee will pay the difference between the Town-provided medical allowance and the cost of
the more expensive program through payroll deduction.
The Town’s contribution towards medical insurance set forth in Section 13 (the PEMHCA minimum) will be deducted
from the amount of contribution provided by this Section.
13.4 Vision
The Town shall pay for employee-only coverage under the Town’s Vision Service Plan (VSP). Employees may enroll
eligible dependents at their own cost.
13.5 Cash-In-Lieu Plan
Employees have the option of choosing all available coverages or, upon providing proof of other medical coverage, may
choose to opt out of the Town’s coverage and be provided with cash-in-lieu.
Employees who choose to receive the cash-in-lieu must first show proof of alternative minimum essential medical
coverage for the employee and employee’s tax family (individuals for whom the employee expects to claim a personal
exemption deduction). Individual coverage, and individual coverage from Covered California does not qualify as
alternative minimum essential coverage under this section. Employees must provide reasonable evidence of
alternative minimum essential coverage each plan year, during open enrollment. The Town will not make the cash
payment if it knows or has reason to know that the employee or tax family does not have alternative minimum
essential coverage. Any amount received in cash is taxable. Employees choosing to receive taxable cash will have the
option of receiving it in two equal amounts in December and June, or the first two paychecks of each month (24 times a
year).
• For employees hired before January 1, 2006, the Town contribution to the Cash-In-Lieu program will be equal
to Nine Hundred and Twenty-two Dollars ($922) per month.
• For employees hired after January 1, 2006, the Town contribution to the Cash-In-Lieu program will be Four
Hundred Dollars ($400) per month.
The parties agree to meet and confer at the Town’s request on any changes that are within the mandatory scope of
bargaining related to its Town sponsored Medical Insurance and Cash In-Lieu Plan that may be related to the
compliance and implementation of the Affordable Care Act or the Fair Labor Standards Act as it relates to the regular
rate of pay for overtime.
13.6 Supplemental Health and Welfare Benefits
A. Life: Coverage of $50,000 plus $50,000 accidental death: Town to pay for premium. Additional life insurance
may be purchased by the employee equal to once or twice the employee's base salary, not to exceed $200,000.
B. Disability: Short Term Disability Policy effective 8th calendar day; coverage of 60% of weekly earnings up to
maximum of $1,300/week for 13 weeks. Long Term Disability benefits begin on the 91st day of disability;
coverage of 60% of monthly earnings up to a maximum of $6,000/month.
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C. Employee Assistance Program: Premiums shall be paid by the Town.
D. Unemployment Insurance: Premiums shall be paid by the Town to provide State coverage.
Section 14. Retiree Health
The Town provides retiree health benefits in accordance with the PEMHCA for employees who qualify as eligible PERS
retirees who receive a PERS retirement allowance and are PEMHCA annuitants entitled to such benefits under the
PEMHCA.
Beginning October 1, 2018, the Town will pay a maximum contribution of $133 per month to CalPERS for each eligible
annuitant towards the purchase of medical insurance. Beginning January 1, 2019, tThe Town’s maximum monthly
contribution for each eligible annuitant shall be equal to the minimum employer contribution required under the
PEMHCA, currently $149 per month, as may be adjusted by CalPERS from year to year. The provisions of PEMHCA will
govern medical insurance coverage for annuitants.
14.1 Retiree Health Health Reimbursement Account (HRA) Benefit for Eligible
Retirees Hired On or before Before October 1, 2018
An employee hired on or prior to October 1, 2018, or provided with a final offer confirmation of employment prior to
October 1, 2018ratification and approval of the 2018-2021 Memorandum of Understandingis agreement, is eligible for
Health Reimbursement Account (HRA) retiree health benefits in accordance with this Section.
14.1.12
The employee retired from the Town taking a service or disability retirement from CalPERS as a retiree receiving a PERS
retirement allowance and is a PEMHCA annuitant; and,
14.1.23
The employee must actually draw a CalPERS pension within ninety (90) days of separation from the Town, provided the
employee remains with the Town’s health plan through COBRA.
14.41.3
The amount of the supplemental retiree health benefit allowance will be equal to 100% of the cost of the premium for
Kaiser Bay Area Retiree Only and 90% of the difference between the Kaiser Employee Only and Kaiser level of
participation (Employee Plus One or Employee Family, depending on family status)Bay Area Retiree Plus One level of
participation. For dependents, tThe Town will pay $1,443.45 per month towards a Retiree Plus One plan and
$1,9547.16 per month towards a Retiree Plus One or More plan, as of the 2022 plan yearOctober 1, 2018. This amount
will increase by $100.00 each year until it is equal to the active employee contribution.
14.51.4
The Town’s contribution towards retiree health insurance set forth in Section 14 (the PEMHCA minimum) will be
deducted from the amount of contribution provided by this Section (14.14).
14.61.5
Employees retiring on or after February 1, 2016 and upon becoming eligible for Medicare will cease to receive any
retiree health benefit allowance under this Section (14.41) and will become eligible for Supplemental Medicare equal
to the cost of Kaiser Senior Advantage Bay Area Medicare rates up to a maximum of 100% Retiree Only, 90% for
Retiree Plus One or 90% for Retiree Plus One or More less the amount of the employee contribution provided under
Section 14 (the PEMHCA minimum). This benefit is available to the eligible retired employee only after he or she has
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reached the age of 65 and is Medicare eligible or as otherwise specified by law.
14.71.6
The benefits described by this Section (14.14.4) will be provided to annuitants through CalPERS by means of a Health
Reimbursement Account (HRA).
14.82 Retiree Health Benefit for Eligible Retirees Hired After October 1, 2018
The parties agree to add the PORAC Trust option requiring bargaining unit employees to contribute at least $100 per
month subject to reaching mutual agreement on the language. The parties agree that administrative fees required by
the PORAC trust shall be split 50/50 by the Town and the POA.
The Association will establish participation in a retiree medical plan administered by the PORAC Retiree Medical Trust
(PORAC RMT). This agreement to participate will apply to every employee, represented by the Association, hired by
the Town after October 1, 2018. The cost of establishing and maintaining the Trust shall be at no cost to the Town,
including administrative fees. The Town is not a party to the Trust, aside from transferring funds, and has no
obligations to the management, regulatory compliance or performance of the trust. In the event the Trust becomes
insolvent or unable to pay, the Town has no financial obligation to the Trust or the contributing members of the
Association.
The Town will transfer a monthly employee contribution of one hundred dollars ($100.00) for each Association
member deducted in fifty dollars ($50.00) increments from the first two paychecks of each month (24 times per year).
These contributions shall be on a pre-tax basis if permitted by law. As each member will contribute the same
predetermined dollar amount, no member election forms designating the amount will be needed, allowed or
requested; and there shall be no member election available to take the member contribution amount in cash, or to
determine the member contribution amount. These contributions shall be included as salary for purpose of calculating
retirement benefits as determined by the California Public Employees Retirement System (CaIPERS).
The Town will comply with reasonable procedures set by the Trust Office with regard to reporting and depositing the
required contributions set forth above, typically involving providing the Trust Office with the name, social security
number and amount paid for each Association member. In the event that the reporting requirement of the Trust
requires reporting beyond that which the Town typically provides, the Town may require the Association to pay for any
costs related to programing or producing such reports. Prior to engaging in any activity that could result in such an
expense, the Town will secure the Association's authorization
The Association agrees to defend, indemnify, and hold the Town harmless from any liabilities of any nature which may
arise as a result of the operating of the PORAC RMT, except for the obligation of the Town to make and report the non-
elective transfer of Association member contributions as described above.
The monies contributed to the Trust fund shall only be used for retiree health insurance premiums
or health care expenses, as allowed by law. There shall be no Association member election/option available to take
such amount in unrestricted cash.
The purpose of this Trust shall be to provide for retiree health care expense reimbursement benefits. The Trust shall be
and remain separate and apart from any Town health insurance funding program, unless changed by mutual written
agreement of the parties. The contributions set forth above, unless otherwise dictated by law or rules set forth by
CalPERS, shall be included as salary for purpose of calculating pension benefits.
The Town hereby acknowledges receipt of the Trust Agreement governing the Trust. The Town will cooperate with the
Trust in allowing a payroll audit only for the purpose of ascertaining if the proper amount of contributions have been
made.
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Section 15. Uniforms
The Town will provide a full set of uniforms and equipment (per Department Uniform Policy) to each new employee.
The Town will replace authorized uniform items damaged in the performance of duty as approved by the Chief of
Police.
Effective upon ratification and approval by the Council of this Agreement, tThe Town will pay bargaining unit
employees a uniform allowance of One Hundred Fifteen Dollars ($115) per month (paid the first two pay periods of
each month) for the repair, maintenance, and replacement of uniforms.
Section 16. Mileage Reimbursement
Employees using personal vehicles on official Town business shall be reimbursed at the mileage rate established by the
I.R.S. Private vehicles used for Town business shall comply with the California Vehicle Code.
Mileage reimbursement requests must be submitted within 30 days of the date accrued.
Section 17. Payroll Periods
The Town and Association agree to the continuation of a biweekly payroll period. The following conditions are in
effect:
A. Employee pay shall not be withheld more than seven (7) calendar days from the end of the payroll period,
however, a maximum of two days overtime may appear on the next payroll period if it is worked following the
submittal of time sheets, or during a pay period with a Town holiday which requires early submittal of time sheets
and early distribution (before Friday) of pay checks. This may also occur at the end of the fiscal or calendar year.
B. The Town shall provide an optional electronic check deposit system for use by employees.
Section 18. Paychecks
Payroll deductions and accruals shall appear on all paychecks.
Section 19. Deferred Compensation
The Town shall continue to offer a program of deferred compensation to its members in the represented
classifications. The Town makes no representation on the merit of the plan nor any of the investment products or
instruments which may be offered by the plan. The responsibility for evaluating the options within the plan is the
responsibility of the individual participant. The Town shall not be obligated to offer more than one Deferred
Compensation carrier.
Section 20. Overtime
Overtime is time worked beyond any scheduled work shift.
All overtime worked shall be compensated at time and one-half. The employee may choose whether overtime worked
shall be paid in cash or accumulated as Compensatory Time Off (CTO), subject to a maximum accumulated CTO of one
hundred and forty (140) hours.
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On or before the pay period which includes December 15 of each calendar year, an employee may make an irrevocable
election to cash out up to 40 hours of CTO twice per year (paid at the regular rate of pay in whole hour increments)
which will be earned in the following calendar year. In the first full pay period of June and December in the following
year, the employee will receive cash for the amount of CTO the employee elected to cash out in the prior year.
However, if the employee’s CTO balance is less than the amount the employee elected to cash out (in the prior
calendar year) the employee will receive cash for the amount of the CTO the employee has accrued at the time of the
cash out.
Annual review of the impact of those changes will occur to determine if there is any adverse impact on scheduling.
For private duty contracts, officers may only receive pay.
Overtime is to be approved by a supervisor as soon as practical. Overtime payroll sheets are the responsibility of the
employee to have approved and forwarded to the division commander by the appropriate payroll deadline.
Section 21. Duty Extension
Compensation is made for actual time worked and shall be computed in minimum quarter-hour blocks.
Personnel whose work hours would normally terminate within one hour or less from the time of the scheduled court,
meeting, or training commencement will be compensated from the termination of their normal work hour through the
termination of the scheduled event.
Duty extension is paid at time and one half.
Section 22. Call Back
Requests that personnel return to duty, attend mandatory meetings, court appearances and training classes are call
backs and compensated at a 3 hour minimum or actual time, whichever is greater. Mandatory meetings where a
minimum of two weeks’ notice has been given are not a call back and will be compensated at a one (1) hour minimum
or actual time worked whichever is greater.
Call backs for officers assigned to Watch I (midnight shift) who have worked the night before shall receive a minimum
of 4 hours.
Personnel are considered on duty for the duration of a call back.
Court appearances-hearings-depositions: Required off duty attendance at judicial or administrative hearings is
compensated at a 3-hour minimum (4 hours for midnight if shift worked the night before appearance), or actual time,
whichever is greater. Should there be more than one appearance, including separate court locations, within the 3 or 4
hour time period, only one minimum will be granted.
Call back is paid at time and one half.
Section 23. Vacation Schedule
The following vacation schedule shall apply to all employees:
Months of Employment
Accrual
Days Per Year
Accrual
Hours Per Pay Period
0 to 36 10 3.08
37 to 60 15 4.62
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61 to 120 20 6.46
121 to 180 23 7.08
181 months 25 7.70
Maximum accrual of vacation hours shall be 344 hours.
On or before the pay period which includes December 15 of each calendar year, an employee may make an irrevocable
election to cash out up to 80 hours of vacation twice per year (in whole hour increments) which will be earned in the
following calendar year. In the first full pay period of June and December in the following year, the employee will
receive cash for the amount of vacation the employee irrevocably elected to cash out in the prior year. However, if the
employee’s vacation balance is less than the amount the employee elected to cash out (in the prior calendar year) the
employee will receive cash for the amount of vacation the employee has accrued at the time of the cash out.
Section 24. Vacation and Overtime Compensatory Time Off Cash-out
Employees who terminate from Town service shall have all accrued vacation and compensatory time off overtime
cashed-out. This will terminate their status as an employee of the Town.
Section 245. Shift and Vacation Selection Procedures
Patrol shift selection and vacation bidding shall commence approximately ten weeks prior to shift change, unless
circumstances require otherwise.
The Town agrees to continue efforts to transition to an online mechanism for shift and vacation selection.
Due to the Association’s concerns regarding changes to the vacation selection procedure that arose due to sworn
staffing shortages and its effect on officer access to vacation, the parties agree to meet to discuss shift and vacation
selection procedures during the month of July 2022. Upon request by the Union, the parties will promptly meet and
confer on the limited issue of the Department’s vacation selection procedure. Any changes to the existing vacation
selection procedure will be by mutual agreement.
Section 26. Holidays and Holiday Pay
The following holidays will be observed by non-uniform personnel:
• January 1.
• the third Monday in January.
• the third Monday in February.
• the last Monday in May.
• Juneteenth.
• July 4.
• the first Monday in September.
• Thanksgiving Day.
• the Friday following Thanksgiving Day.
• December 25.
• Four hours on December 24 and December 31
• Every day declared a Holiday by the Mayor as a result of a national holiday declared by the President or State
Governor.
Holidays which fall on Saturday shall be observed on the Friday prior and holidays which fall on Sunday shall be
observed on the following Monday.
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Uniform personnel assigned to shift work (Patrol and Traffic) shall receive compensation in-lieu of holiday time off
equal to eighty (80) hours of base pay annually. Employees shall have the option of taking Holiday leave off equal to
eighty hours (80) or receive in-lieu compensation. If the employee selects to receive in-lieu compensation, forty (40)
hours of holiday pay will be received in the last payroll of November and the second forty (40) hours will be received in
the last payroll of May, and will be included on the regular check. In-lieu holiday pay shall cease whenever an
employee is reassigned to other than shift work. The employee shall observe holidays as described above. In the event
that an additional holiday is observed by the Town during the term of this agreement, the in-lieu compensation shall be
increased by the additional hours holiday time made available to non-uniform personnel (the language of this
paragraph becomes null and void effective January 1, 2019).
Effective beginning January 1, 2019, the parties agree to pay holidays for bargaining unit employees through Holiday In-
Lieu pay of 4.0%.
Effective the first full pay period of July 2022 or the first full pay period after Council approval of the MOU, whichever is
later, in recognition of Juneteenth, holiday in-lieu pay will be increased by 0.4%, to total 4.4%.
Effective the first full pay period of July 2022 or the first full pay period after Council approval of the MOU, whichever is
later, employees will receive a one-time, non-pensionable lump sum payment of one thousand dollars ($1,000) for
foregoing the Juneteenth holiday prior to 2023.
Section 276. Personal Leave
Employees shall have the option of either taking personal leave off equal to twenty-four (24) hours of base pay
annually, or receiving in-lieu compensation equal to same if the personal leave is not used by the end of November.
Employees may use personal leave hours during the month of December; however, employees desiring to receive
compensation for those hours shall do so in conjunction with the annual cash out in November.
Section 278. Sick Leave
Accumulation rate shall be 8 hours per month (3.70 hours per pay period) with a maximum accrual of 1180 hours. The
Town may require association represented employees to provide a doctor statement of proof of illness for any use of
sick leave beyond one working day.
Section 298. Sick Leave Cash-Out Program
298.1 Annual Sick Leave Cash-Out for Employees Hired Prior to October 1, 2018
On or before the pay period which includes December 15 of each calendar year, employees eligible to cash out under
this section may make an irrevocable election to cash out up to 40 hours of their accumulated sick leave at 50% of
current salary two times per year (in whole hour increments) which will be earned in the following calendar year. In
the first full pay period of June and December in the following year, the employee will receive cash for the amount of
sick leave the employee irrevocably elected to cash out in the prior year. However, if the employee’s sick leave balance
is less than the amount the employee elected to cash out (in the prior calendar year) the employee will receive cash for
the amount of sick leave the employee has accrued at the time of the cash out.
298.2 Sick Leave Cash-Out Upon Termination for Employees Hired Prior to October
1, 2018
Employees who terminate employment with the Town for any reason other than retirement or disciplinary
termination, may cash-out their accumulated sick leave as follows:
Months of Employment
1-59 months 25%
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60-119 months 37.5%
120 months or more 50%
In order to be eligible for the sick leave cash-out program, an employee must have a sick leave accrual balance of at
least 200 hours at the time of termination.
298.3 Unused Sick Leave Upon Retirement
Upon retirement, eligible employees may choose from the following options:
1. Eligible employees may convert unused sick time to service credit in accordance with provisions established by
CalPERS.
2. Sick Leave Cash Out for Employees Hired Prior to October 1, 2018
All eligible employees who retire with a sick leave accrual balance of at least 200 hours may elect to be paid in cash in
accordance with the same provisions as Section 28.2 Sick Leave Cash-Out Upon Termination.
3. Sick Leave Conversion for Employees Hired Prior to January 1, 2009
All employees who retire with a sick leave accrual balance of at least 200 hours may convert 100% of this accumulated
sick leave to a dollar equivalent at their hourly rate of pay at the time of retirement. This amount shall be held in an
account. The employee’s portion of the medical insurance premium payment will be withheld from their monthly
retirement payment by PERS.
The Town agrees to pay the retiree quarterly in advance on the first pay period of January, April, July, and October of
each year after retirement. The first payment will be pro-rated to the nearest quarter.
Retiree’s (including dependents of the retiree) portion of medical payments will be paid from this account by the Town
until all monies are depleted from the account.
This account will not accrue interest and will not be paid in cash to the retiree or any beneficiaries. The retirees shall
be responsible for 100% of their share of future medical insurance premiums once the account is exhausted.
Section 3029. Military Leave
Military leave and benefits shall be granted in accordance with State and Federal Law, including the continuation of
employee salary and benefits if applicable.
Generally, employees with more than one year service will receive up to thirty (30) calendar days of paid military leave
annually while engaged in military duty ordered for purposes of active military training.
Section 310. Bereavement/Compassion Leave
Up to 40 hours available per occurrence – use limited to spouse, parent, grandparent, child, or sibling by blood or
marriage. It is recognized that bereavement/compassion leave is separate from employee’s accumulated sick leave,
vacation or CTO.
Section 321. Leave Without Pay
Leave without pay shall be subject to approval of the Chief of Police and the Town Manager.
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An employee who is on leave without pay shall not earn any employment benefits (including, but not limited to, such
benefits as vacation leave, medical benefits, sick leave, retirement, credit for time employed or seniority entitlement of
any kind) for the duration of such leave.
Vacation or sick leave or time worked shall not be used intermittently during an extended leave to interrupt a
determination that an employee is on leave without pay.
The Town may, at its discretion, approve leave beyond the specific amount provided above.
Section 332. Accrual of Benefits
Benefits shall not accrue to employees on unauthorized leave, suspension without pay, or leave without pay.
Section 343. Workers’ Compensation
Employees shall be provided benefits in compliance with State law.
Section 354. Jury Duty
Employee salary and benefits shall be continued during jury duty; employee turns over to the Town any compensation
from the courts or other source of jury duty on regular work days.
Section 365. Outside Employment
Outside employment shall be subject to approval of the Chief of Police and the Town Manager, subject to the following
limitations: no security work within Town limits; no use of Los Gatos uniform, badge, ID, or Los Gatos issued items;
vacation or CTO to be used for court appearances resulting from private employment. Approval must be obtained
prior to engaging in the outside employment and shall be renewed prior to July 1 of each year.
Section 376. Residency Requirement
There is no residency requirement for represented employees.
Section 387. Layoff Policy
Association recognizes the right of the Town to determine the resources to be made available to the police
department. Although a reduction in force (layoff) is not anticipated, it is recognized that it is the sole right of the
Town to determine when such reductions in force are necessary.
Reductions in force shall be by classification with the determination of affected employees by the Town based on
seniority counted as total time employed by the Town. Affected employees shall be provided a minimum thirty (30)
calendar days’ notice of layoff.
Employees in the classification of Police Sergeant and designated for layoff shall have the right to return to positions
previously held with the Town and represented by the Association.
Section 398. Vehicles
Town shall advise POA no later than sixty days prior to Town development of vehicle specifications for patrol vehicles.
POA shall submit recommended specifications for vehicle purchase no later than thirty (30) days after receiving the
notice from the Town.
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Section 3940. Promotions
The Town and Association agree that it is in the best interest of both the Town and its employees to foster promotion
of incumbent employees.
The Town and Association recognize the Town's sole right to determine the examination process for the selection of
Town employees. Qualified employees who are invited to participate in the examination process shall be allowed up to
two (2) hours of time-off from regularly scheduled work in order to participate in the examination process if the
examination process is scheduled during the employee's normal work period.
To the best of its ability, the Town shall maintain a current promotional list for the positions of Police Corporal and
Police Sergeant.
Any opening for Police Corporal or Police Sergeant positions shall be posted for a minimum of three weeks, unless
extraordinary circumstances warrant otherwise.
Section 410. Probationary Period
The Town and the Association agree that all original appointments to the rank of Police Officer will include a
probationary period of 18 months from date of hire to allow the department to fully evaluate the officer following the
academy and FTO training.
Individuals hired as a lateral transfer must have a valid P.O.S.T. Basic Certificate at the time of hire and will be subject
to a 12-month probationary period.
Any individual on an 18-month probationary period will be eligible to receive a step increase after 12 months.
All promotional appointments to the positions of Corporal and Sergeant shall be subject to satisfactory completion by
the employee of a 12-month probationary period.
The Chief of Police may extend the probationary period of an employee for a period not to exceed an additional six (6)
months.
Section 421. Performance Evaluations
Performance evaluations shall take place at least every three (3) months for all probationary employees and shall take
place at least annually thereafter on the anniversary of an employee’s employment with the Town. Employees eligible
for step increases shall receive their performance evaluation no later than fifteen (15) days prior to their employment
anniversary date.
All performance evaluations shall be discussed with the employee prior to the evaluation being completed. Employees
may sign their individual performance evaluations as evidence of discussion having taken place; employee signature
does not necessarily imply agreement with the evaluation. If an employee chooses not to sign an evaluation, the
supervisor will note that the employee has read the evaluation and chooses not to sign. An employee may attach
separate written comments to his/herhis/her/their evaluation.
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Section 423. Reinstatement
Subject to the approval of the Town Manager, a permanent employee who has resigned from employment with the
Town may be reinstated within two (2) years of his/herhis/her/their resignation to his/herhis/her/their former
position, if vacant. Upon reinstatement, the employee shall be considered as though he/she/they had received an
original appointment, unless other conditions are made a part of the reinstatement by the Town Manager.
Section 434. Re-Employment
The names of employees affected by layoff shall be placed on appropriate re-employment lists in the order of total
continuous cumulative time served in paid status. Such names shall remain thereon for a period of eighteen (18)
months unless such persons are sooner re-employed. When a re-employment list is to be used to fill vacancies, the
Personnel Officer shall certify from the top of such list the number of names equal to the number of vacancies to be
filled, and the appointing power shall appoint such persons to fill the vacancies.
Section 445. Grievance Procedures
Grievances shall be defined as alleged violations of this agreement or disputes regarding interpretations, application, or
enforcement of this agreement to Town ordinances, resolutions, and written policies related to personnel policies and
working conditions. Grievances shall not include disagreements, disputes, or activities regarding or pertaining to
examinations for employment or promotion, disciplinary action, performance evaluations, and probationary
terminations.
No act or activity which may be grievable may be considered for resolution unless a grievance is filed in accordance
with the procedure contained herein within sixty (60) calendar days of the date the grievable activity occurred or the
date the employee could reasonably have known such activity occurred. The provision for the sixty (60) days “statute
of limitations” shall not apply to probationary employees.
The parties agree that all grievances will be processed in accordance with the following procedure:
Any employee who has a grievance shall first try to get it settled through discussion with his/herhis/her/their
immediate supervisor without undue delay. Every effort shall be made to find an acceptable solution at the lowest
possible level of supervision. If after such discussion the employee does not believe the grievance has been
satisfactorily resolved, he/she/they may file a formal appeal in writing to the command officer responsible for
supervision of the employee’s immediate supervisor within ten (10) calendar days after receiving the informal decision
of his/herhis/her/their immediate supervisor. The command officer shall respond within ten (10) calendar days of the
filing of the appeal.
If the employee does not believe the grievance has been satisfactorily resolved by the command officer, the employee
may then file a formal appeal in writing to the Chief of Police within ten (10) calendar days after receiving the informal
decision of the command officer. The Chief of Police shall render his written decision within ten (10) calendar days after
receiving the appeal.
If after receipt of the written decision of the Chief of Police, the employee is still dissatisfied, he/she/they may appeal
the decision of the Chief to the Town Manager. Such appeal shall be made by filing a written appeal to the Town
Manager within five (5) days after the receipt of the written decision of the Chief. The Town shall render a written
decision within twenty (20) working days after the appeal is made.
If after receipt of the written decision of the Town Manager the employee is still dissatisfied, he/she/they may appeal
the decision of the Town Manager to the Personnel Board. Such appeal shall be made by filing a written appeal to the
Chair of the Personnel Board within five (5) days after receipt of the written decision of the Town Manager.
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The Personnel Board shall establish a hearing date within 30 days of receipt of the written appeal. The Personnel
Board shall conduct a closed hearing giving opportunity for presentation by the employee or his/herhis/her/their
representative and the Town Manager. The Personnel Board shall render a written decision within 30 days after the
appeal is made. If after receipt of the written decision of the Personnel Board, the employee is still dissatisfied,
he/she/they may appeal the decision of the Personnel Board to the Town Council. Such appeal shall be made by filing
a written appeal with the Mayor. The Mayor shall schedule a closed hearing with the Town Council within 30 days
after receipt of the appeal. At this hearing, the employee and the Town Manager may make presentations. The Town
Council decision shall be final. The Town Council shall render a decision within 30 days after the hearing. An open
hearing may be conducted by the Personnel Board or Town Council with mutual consent of the Town and person(s)
filing the grievance.
The time limitations for filing and responding to grievances may be waived or extended by mutual agreement of the
parties. If either party to the grievance so requests, an informal hearing shall be conducted at the Chief of Police or
Town Manager appeal levels. Employees may be represented by counsel or other person at any stage in the grievance
process.
Section 456. Attendance
Employees shall be in attendance at their work in accordance with the rules regarding hours of work, holidays and
leave.
An employee whose absence is not authorized will not receive pay or benefits for the absent period and shall be
subject to discipline. Failure on the part of an employee absent without leave to return to duty shall be grounds for
discharge. It shall be the responsibility of an employee absent without leave to notify the department head of the
reason the employee is absent and of the employee’s availability for duty.
Section 476. Completeness of MOU
The Town and the Association acknowledge and agree to abide by the provisions of the Meyers-Milias-Brown Act.
Section 478. Association Notification or Communications
The Town and the dDepartment will make every reasonable effort to keep the Association President informed on
issues related to the working conditions of the Association members.
Section 49. Labor-Management Committee
As part of a continuing effort to promote healthy labor relations, the Department and the Association shall establish a
Police Labor-Management Committee to meet on at least a quarterly basis to promote open communication and the
sharing of information. It is the intent of the parties that the Chief or designee and the Association President or
designee will attend these meetings.
Section 4850. Catastrophic Time Bank
If an employee is catastrophically ill or injured, or if the spouse or child of such employee becomes catastrophically ill
or injured, the employee may request of the Town Manager that a catastrophic time bank be established. This request
should be in writing. The catastrophic time bank will enable other employees to donate accrued CTO, holiday credits,
or vacation credits to the requesting employee in accordance with departmental policies.
Specific procedures for the administration of the catastrophic time bank will be developed by the department.
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Section 49. Reopener
If, for any reason, the Chief of Police decides it is in the best interest of the Department to discontinue the 4-10 Plan
within the term of this agreement, the Town of Los Gatos agrees to reopen negotiations within 30 days on all
provisions of the MOU.
Section 510. Me Too Clause
The Town shall not enter into an agreement with another bargaining unit, local union or management unit so that unit,
local or bargaining unit can receive any compensation related to any salary or total compensation increase obtained by
the POA.
Section 51. Update of Personnel Rules
The Town will be updating the Personnel Rules during the term of this agreement. The Town will provide notice and an
opportunity to meet and negotiate any negotiable changes to the Personnel Rules. The parties agree to this process
for this update.
Page 328
Class Code Classification Title Range Step Hourly Rate
2520 Police Sergeant (Prior) 04-0721 1 $66.43
Appointment before 03/01/2015 2 $69.75
3 $73.24
4 $76.90
5 $80.75
Class Code Classification Title Range Step Hourly Rate
2521 Police Sergeant (New) 05-0721 1 $66.43
Appointment after 03/01/2015 2 $69.75
3 $73.24
4 $76.90
Class Code Classification Title Range Step Hourly Rate
7500 Police Corporal 03-0715 1 $55.12
2 $57.88
3 $60.77
4 $63.81
5 $67.00
Class Code Classification Title Range Step Hourly Rate
7510 Police Officer 02-0711 1 $52.50
2 $55.13
3 $57.89
4 $60.78
5 $63.82
Class Code Classification Title Range Step Hourly Rate
9519 Police Trainee *01-0710 1 $49.88
*95% of Step 1 of Police Officer Classification (Provisional Employee with Misc PERS)
Reflects General Increase of 2%.
Town of Los Gatos POA Classifications
Salary Schedule for Fiscal Year 2021/22
Effective June 12, 2022
Adopted by Town Council June 7, 2022
POA 2%1 Approved 6/7/2022
ATTACHMENT 1
Page 329
Class Code Classification Title Range Step Hourly Rate
2520 Police Sergeant (Prior) 04-0721 1 $69.92
Appointment before 03/01/2015 2 $73.42
3 $77.09
4 $80.94
5 $84.99
Class Code Classification Title Range Step Hourly Rate
2521 Police Sergeant (New) 05-0721 1 $69.92
Appointment after 03/01/2015 2 $73.42
3 $77.09
4 $80.94
Class Code Classification Title Range Step Hourly Rate
7500 Police Corporal 03-0715 1 $58.01
2 $60.91
3 $63.96
4 $67.16
5 $70.52
Class Code Classification Title Range Step Hourly Rate
7510 Police Officer 02-0711 1 $55.26
2 $58.02
3 $60.92
4 $63.97
5 $67.17
Class Code Classification Title Range Step Hourly Rate
9519 Police Trainee *01-0710 1 $52.50
*95% of Step 1 of Police Officer Classification (Provisional Employee with Misc PERS)
Reflects General Increase of 5.25%.
Town of Los Gatos POA Classifications
Salary Schedule for Fiscal Year 2022/23
Effective July 10, 2022
Adopted by Town Council June 7, 2022
POA 5.25%1 Approved 6/7/2022
ATTACHMENT 2
Page 330
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: 20
DATE: June 2, 2022
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Approve a Labor Agreement Between the Town of Los Gatos and the Town
Employees’ Association and Authorize the Town Manager to Execute the
Memorandum of Understanding
RECOMMENDATION:
Staff recommends that the Town Council approve a Labor Agreement Between the Town of Los
Gatos and the Town Employees’ Association (TEA) and Authorize the Town Manager to Execute
the Memorandum of Understanding .
BACKGROUND:
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 in an effort to reach agreement for a successor Memorandum of
Understanding (MOU). The revised agreement will be posted as an Addendum on June 3, 2022.
The MOU is a labor agreement that identifies specific terms and conditions of employment
applicable to the employees represented by that agreement.
DISCUSSION:
The Town’s current MOU with TEA expires on June 30, 2022. In April 2022, the Town and TEA
began negotiating for a successor agreement. A tentative agreement for a two-year term was
reached in April and TEA membership ratified on June 2, 2022.
Major provisions of the agreement include and are not limited to:
1. Term: July 1, 2022 to June 30, 2024
Page 333
PAGE 2 OF 3
SUBJECT: Approve a Labor Agreement Between the Town of Los Gatos and the
American Federation of State, County, and Municipal Employees and
Authorize the Town Manager to Execute the Memorandum of Understanding
DATE: June 2, 2022
DISCUSSION (continued):
2. Salary:
a. Effective the first full pay period of July 2022 (Effective July 10, 2022), or the first
full pay period after Council approval, whichever is later, the Town will provide a
3% cost of living adjustment (COLA) and a 5% market increase for a total of 8%.
The market increase is intended to bring TEA classifications to or near market
median based on data in a compensation survey of the relevant labor market
completed by outside consultant Bryce & Associates in April 2022 .
b. Effective in the first full pay period of July 2023, the Town will provide a 3% cost
of living salary increase.
3. Pandemic Related Bonus: Effective the first full pay period of July 2022, or the first full
pay period after Council approval, whichever is later, all employees who worked for the
Town in 2021, who are employed at the Town as of the last day of the pay period will
receive a one-time, lump sum payment of $2,500.00.
4. Juneteenth Holiday: Effective after Council approval of this MOU, June 19th
(Juneteenth) shall be added to Section 29 of the MOU as an observed paid eight (8) hour
holiday for employees represented by TEA.
5. Market Adjustments: On one occasion during the term of the MOU, upon request by
the Union, the Parties agree to meet to discuss elements of future compensation
surveys for TEA and ways to collaborate to obtain the best market data for TEA
classifications. The parties agree this is not a reopener and any changes to the MOU on
this issue would be by mutual agreement of the parties.
6. Compensatory Time Off (CTO) for Non-Dispatchers: Increase CTO accrual limit by
twenty (20) hours to maximum of eight (80) hours.
7. Bereavement Leave: Add Stepchildren, foster children, stepparents/parents in law, and
grandchildren.
The Town and TEA have also agreed to various MOU language updates. The red-lined MOU will
be posted on Friday, June 3, 2022 as an Addendum. These updates clarify existing language,
delete obsolete language, and ensure compliance related to the Town’s contract for retirement
and medical benefits provided under the California Public Employees’ Retirement System
(CalPERS) and the Public Employees’ Medical
and Hospital Care Act (PEMHCA).
CONCLUSION:
The TEA agreement has been prepared within the parameters provided to Town’s negotiators
by the Town Council and has been ratified by the TEA membership. It is recommended that the
proposal be approved, and the Town Manager be authorized to execute the MOU.
Page 334
PAGE 3 OF 3
SUBJECT: Approve a Labor Agreement Between the Town of Los Gatos and the
American Federation of State, County, and Municipal Employees and
Authorize the Town Manager to Execute the Memorandum of Understanding
DATE: June 2, 2022
FISCAL IMPACT:
The anticipated fiscal impact for the 3% salary increase ($215,000) and 5% market increase
($290,000) in FY 2022/23 is $505,000. The anticipated fiscal impact of the $1,000 non-
pensionable one-time payment and the one-time, lump sum pandemic related bonus payment
of $2,500.00 in FY 2022/23 is $210,000.
The total cost impact for FY 2022/23 will be absorbed in the Town’s existing operating budget.
Funding to support the FY 2023/24 ongoing cost each year 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.
Attachment:
1. Salary Schedule for TEA effective July 10, 2022
Page 335
Town of Los Gatos TEA Classifications
Salary Schedule for Fiscal Year 2022/23
Effective July 10, 2022
Adopted by Town Council June 7, 2022
Class Code Classification Title Rate Type Range TE1 Step 1 Step 2 Step 3 Step 4 Step 5 Step 6
4310 Account Technician Hourly 08 $36.88 $38.72 $40.66 $42.69 $44.82 $47.64
3580 Administrative Assistant Hourly 04 $30.87 $32.41 $34.03 $35.73 $37.52 $39.98
4620 Assistant Engineer Hourly 25 $49.12 $51.58 $54.16 $56.87 $59.71 $63.28
4420 Assistant Planner Hourly 12 $42.71 $44.85 $47.09 $49.44 $51.91 $55.09
4600 Associate Civil Engineer Hourly 27 $55.88 $58.67 $61.60 $64.68 $67.91 $71.89
4661 Associate Engineering Technician Hourly 14 $43.02 $45.17 $47.43 $49.80 $52.29 $55.48
4400 Associate Planner Hourly 20 $49.70 $52.19 $54.80 $57.54 $60.42 $64.02
4410 Building Inspector Hourly 24 $47.82 $50.21 $52.72 $55.36 $58.13 $61.62
4430 Code Compliance Officer Hourly 10 $42.76 $44.90 $47.15 $49.51 $51.99 $55.17
4530 Communication Dispatcher Hourly 17 $45.31 $47.58 $49.96 $52.46 $55.08 $58.41
4535 Communication Dispatcher Lead Hourly 19 $57.24 $60.10 $63.11 $66.27 $69.58 $73.64
4540 Community Services Officer Hourly 11 $36.36 $38.18 $40.09 $42.09 $44.19 $46.98
4615 Construction Project Manager Hourly 26 $53.61 $56.29 $59.10 $62.06 $65.16 $69.00
4660 Engineering Technician Hourly 13 $39.05 $41.00 $43.05 $45.20 $47.46 $50.41
4705 Environmental Programs Specialist Hourly 08 $36.88 $38.72 $40.66 $42.69 $44.82 $47.64
4200 Events and Marketing Specialist Hourly 06 $32.53 $34.16 $35.87 $37.66 $39.54 $42.10
3501 Executive Assistant Hourly 08 $36.88 $38.72 $40.66 $42.69 $44.82 $47.64
4900 IT Systems Administrator Hourly 23 $53.24 $55.90 $58.70 $61.64 $64.72 $68.54
4915 IT Technician Hourly 07 $39.91 $41.91 $44.01 $46.21 $48.52 $51.53
4810 Librarian Hourly 16 $40.81 $42.85 $44.99 $47.24 $49.60 $52.66
4830 Library Assistant Hourly 03 $30.13 $31.64 $33.22 $34.88 $36.62 $39.03
4807 Library Customer Service Specialist Hourly 01 $28.23 $29.64 $31.12 $32.68 $34.31 $36.61
4805 Library Customer Service Supervisor Hourly 08 $36.88 $38.72 $40.66 $42.69 $44.82 $47.64
4825 Library Specialist Hourly 06 $32.53 $34.16 $35.87 $37.66 $39.54 $42.10
4819 Library Tech Specialist Hourly 15 $39.55 $41.53 $43.61 $45.79 $48.08 $51.06
3181 Office Assistant Hourly 01 $28.23 $29.64 $31.12 $32.68 $34.31 $36.61
4640 Park Services Officer Hourly 11 $36.36 $38.18 $40.09 $42.09 $44.19 $46.98
4560 Parking Control Officer Hourly 01 $28.23 $29.64 $31.12 $32.68 $34.31 $36.61
4440 Permit Technician Hourly 09 $35.53 $37.31 $39.18 $41.14 $43.20 $45.94
TEA 8%Page 1 of 2 Approved 6/07/2022
ATTACHMENT 1
Page 336
Town of Los Gatos TEA Classifications
Salary Schedule for Fiscal Year 2022/23
Effective July 10, 2022
Adopted by Town Council June 7, 2022
Class Code Classification Title Rate Type Range TE1 Step 1 Step 2 Step 3 Step 4 Step 5 Step 6
4425 Planning Technician Hourly 11 $36.36 $38.18 $40.09 $42.09 $44.19 $46.98
4550 Police Records Specialist Hourly 05 $31.60 $33.18 $34.84 $36.58 $38.41 $40.91
4630 Public Works Inspector Hourly 18 $44.47 $46.69 $49.02 $51.47 $54.04 $57.32
4450 Senior Building Inspector Hourly 27 $55.88 $58.67 $61.60 $64.68 $67.91 $71.89
4525 Senior Communication Dispatcher Hourly 29 $50.76 $53.30 $55.97 $58.77 $61.71 $65.38
4831 Senior Library Page Hourly 02 $19.85 $20.84 $21.88 $22.97 $24.12 $25.91
4565 Senior Parking Control Officer Hourly 11 $36.36 $38.18 $40.09 $42.09 $44.19 $46.98
4405 Senior Planner Hourly 28 $57.24 $60.10 $63.11 $66.27 $69.58 $73.64
4610 Senior Public Works Inspector Hourly 26 $53.61 $56.29 $59.10 $62.06 $65.16 $69.00
4662 Sr. Engineering Technician Hourly 24 $47.82 $50.21 $52.72 $55.36 $58.13 $61.62
Reflects General Increase of 8%
TEA 8%Page 2 of 2 Approved 6/07/2022Page 337
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: 20
ADDENDUM
DATE: June 3, 2022
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Approve a Labor Agreement Between the Town of Los Gatos and the Town
Employees’ Association and Authorize the Town Manager to Execute the
Memorandum of Understanding
REMARKS:
Attachment 2 contains the Memorandum of Understanding (redline).
Attachment Distributed with Staff Report:
1. Salary Schedule for TEA effective July 10, 2022
Attachment Distributed this Addendum:
2. Memorandum of Understanding (redline)
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TOWN OF LOS GATOS
AND
LOS GATOS TOWN EMPLOYEES’ ASSOCIATION
MEMORANDUM OF UNDERSTANDING
JULY 1, 2022 – JUNE 30, 20241
ATTACHMENT 2
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MEMORANDUM OF UNDERSTANDING
BETWEEN
THE TOWN OF LOS GATOS
AND
THE TOWN EMPLOYEES’ ASSOCIATION (T.E.A.)
THIS AGREEMENT IS ENTERED INTO AS OF JULY 1, 202218, BETWEEN THE TOWN OF LOS GATOS, HEREINAFTER
REFERRED TO AS THE "TOWN", AND THE LOS GATOS “TOWN EMPLOYEES’ ASSOCIATION”, HEREINAFTER REFERRED
TO AS "T.E.A."
Pursuant to Town Resolution 1974-41 of the Town of Los Gatos and Section 3500 et. seq. of the Government Code,
the duly authorized representatives of the Town and T.E.A., having met and conferred in good faith concerning the
issues of wages, hours, and terms and conditions of employment, as herein set forth, declare their agreement to
the provisions of this Memorandum of Understanding.
FOR TOWN EMPLOYEES’ ASSOCIATION:
___________________________
Christine Crosson
Communications Dispatcher Lead
___________________________
Judy Coughlin
Library SpecialistSean Mullin
Senior Planner
___________________________
Daniel KeoughJennifer Armer
Librarian
Senior Planner
___________________________
Beca Muniz
Network AdministratorIT Systems Administrator
___________________________
Mike Weisz
Associate Civil Engineer
TOWN OF LOS GATOS:
___________________________
Laurel Prevetti
Town Manager
___________________________
Arn Andrews
Assistant Town Manager
___________________________
Lisa VelascoSalina Flores
Human Resources Director
___________________________
Donna WilliamsonLisa S. Charbonneau
Liebert Cassidy Whitmore
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_________________________
Catherine Gildea
Librarian
___________________________
Cheryl Schiele
Employee Representation Services, Inc.
APPROVED AS TO FORM:
__________________________
Robert SchultzGabrielle Whelan
Town Attorney
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Table of Contents
Term .............................................................................................................................................................. 1
Goal ............................................................................................................................................................... 1
Section 1. Scope of Representation ............................................................................................................ 1
Section 2. Town Employer-Employee Relations ......................................................................................... 1
Section 3. Comprehensiveness of Agreement ............................................................................................ 3
Section 4. Savings Clause ............................................................................................................................ 3
Section 5. Association Membership ............................................................................................................ 4
Section 6. Non-Discrimination .................................................................................................................... 5
Section 7. Employment ............................................................................................................................... 5
Section 8. Layoff Policy ................................................................................................................................ 9
Section 9. Outside Employment ................................................................................................................ 13
Section 10. Reclassification ....................................................................................................................... 13
Section 11. Salary and Other Compensation ............................................................................................ 13
Section 12. Payroll/Pay Checks ................................................................................................................. 18
Section 13. Holidays .................................................................................................................................. 18
Section 14. Insurance Programs ................................................................................................................ 19
Section 15. Family Medical Insurance and Cash Allocation Plan .............................................................. 19
Section 16. Public Employees’ Retirement System (PERS) ....................................................................... 21
Section 17. Benefits Accrual/Payment ...................................................................................................... 22
Section 18. Vacation and Leaves ............................................................................................................... 23
Section 19. Grievance Procedure .............................................................................................................. 25
Section 20. Miscellaneous Issues .............................................................................................................. 27
Section 21. Terms Specific to Communications Dispatcher ...................................................................... 27
Section 22. Town Vehicles ......................................................................................................................... 27
Section 23. Closure Days with Paid Leave Allowed ................................................................................... 27
Section 24. Complete Agreement ............................................................................................................. 28
Section 25. Successor MOU ...................................................................................................................... 28
Appendix A – T.E.A. Salary Schedule
Appendix B – Placeholder for New Resolution
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TOWN OF LOS GATOS
AND THE TOWN OF LOS GATOS EMPLOYEES’ ASSOCIATION
MEMORANDUM OF UNDERSTANDING
ON SALARIES, FRINGE BENEFITS AND WORKING CONDITIONS
Preamble
The authorized representatives of the Town of Los Gatos hereafter referred to as the "Town" and the authorized
representatives of the Town of Los Gatos Employees’ Association hereafter referred to as "T.E.A." do jointly accept and agree to
all the terms and conditions of employment set forth in this Memorandum of Understanding pursuant to Town Resolution 1974-
41 of the Town of Los Gatos and the Meyers-Milias-Brown Act, Section 3500 et. seq. of the Government Code.
This understanding shall apply to represented employees assigned to those classifications listed on Appendix A. When
classifications are created which fall under the representation of T.E.A., this understanding shall also apply. This agreement
supersedes all previous agreements between the Town and T.E.A.
The terms and conditions of employment set forth in this understanding have been discussed in good faith by the authorized
representatives of the Town and the authorized representatives of the employees.T.E.A T.E.A. agrees to recommend
acceptance by the employees of all terms and conditions set forth herein. Following said acceptance by T.E.A., authorized
representatives of the Town agree to recommend to the Town Council that all terms and conditions set forth herein be
approved by resolution. Upon adoption of said resolution, all terms and conditions so incorporated shall become effective
without further action by either party.
Term
This Memorandum of Understanding shall commence on July 1, 2022 and terminate on June 30, 20241.
Goal
This Memorandum of Understanding (MOU) has been prepared in a spirit of cooperation between T.E.A. and the Town. The
purpose of this MOU is to define all presently known issues concerning employment, foster a sense of team workteamwork
between T.E.A. and the Town, and create conditions under which the highest quality of public service is delivered.
Section 1. Scope of Representation
Employees represented by T.E.A. are those in permanent positions in the classifications listed in Appendix A.
If it should become necessary to reduce the hours of any employee whose classification is listed in Appendix A, such employee's
representation by T.E.A. will not be affected. The Town agrees to notify T.E.A. before filling a vacated represented position with
an hourly employee.
Section 2. Town Employer-Employee Relations
2.1 T.E.A. Rights
The Town recognizes the employees' right to join and participate in T.E.A. T.E.A. shall provide the Town with a list of T.E.A.
officers and department representatives. T.E.A. shall distribute to all new unit employees materials furnished for such purposes
by T.E.A.
Upon request of any employee represented by this Agreement, a T.E.A. representative shall be present during meetings
involving the individual employee in disciplinary matters. Oral reprimands and performance evaluations are not included in the
above. To the extent possible, disciplinary and grievance matters shall be considered during normal working hours and with
pay.
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T.E.A. representatives shall have access to its members, bulletin boards, and Town mail system on Town time.
During the term of the agreement, as long asif there is no disruption in work, up to five (5) T.E.A. members shall be allowed up
to two (2) hours of release time off each month with pay for meeting and conferring, meeting and consulting, or the processing
of grievances in accordance with the grievance procedure, Section 19 of this MOU. The T.E.A. President shall be allowed up to
eight (8) hours for these same purposes. T.E.A. general membership meetings will continue to be held during lunch or after
work. Town initiated meetings are not subject to release time limits. Such T.E.A. members shall first obtain permission from
Department Directors before leaving their work or work locations.
2.2 Town Employer-Employee Relations Resolution
T.E.A. and the Town recognize the existing language in Town Resolution 1974-41, or its successor as it governs all aspects of
labor relations in the Town. Any changes in Resolution 1974-41 which apply to T.E.A. will be made after meeting and consulting
with T.E.A.
2.3 Employee Rights
The Town adopts, in principle, the following rights, duties and responsibilities of its employees:
2.3.1
Organize and select leaders and representatives.
2.3.2
Employee and Town actions shall be governed by the MOU, Personnel Rules and Town policies.
2.3.3
At T.E.A.'s request the Town Manager shall meet twice during the term of this Agreement with T.E.A. to discuss matters of
employee interest.
2.3.4
Utilization of the Disciplinary Procedure (see Resolution 1974-41 or its successor, if any during the term of this MOU, and
Ordinance No. 1593).
2.3.5
Right to request a review of his/her/their classification and receive a response to the request.
2.4 Management Rights
The rights of the Town include, but are not limited to the exclusive right to:
2.4.1
Determine the mission of its constituent departments, commissions and boards;
2.4.2
Set the standards of service;
2.4.3
Determine the procedures and standards of selection for employment and promotion;
2.4.4
Direct its employees;
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2.4.5
Take disciplinary action in accordance with adopted disciplinary procedures, recognizing the employee's right to due process;
2.4.6
Relieve its employees from duty because of lack of work or for other legitimate reasons;
2.4.7
Maintain the efficiency of governmental operations;
2.4.8
Determine the methods, means and personnel by which government operations are to be conducted;
2.4.9
Determine the content of job classifications;
2.4.10
Take all necessary action to determine when an emergency exists and to carry out its mission in emergencies including the
requirement that employees work overtime. Any question regarding the existence of an emergency is determined by the Town
Manager, whose decision shall be final;
2.4.11
Exercise control over its organization and the technology of performing its work;
2.4.12
Refer any question regarding implementation or interpretation of the MOU to the Town Manager or the Human Resources
Director for a determination.
Section 3. Comprehensiveness of Agreement
3.1
The Town and T.E.A. agree that this Agreement represents all wages, hours, and working conditions subject to the meet and
confer process and available to employees.
3.2
In the event that a local, State or Federal law significantly impacts the terms of this MOU, the Town will meet and consult with
T.E.A. regarding its implementation. In some cases, this may occur after the law or rule has been adopted.
Section 4. Savings Clause
If any provision or the application of any provision of this Agreement as implemented should be rendered or declared invalid by
any final court action or decree or by reasons of any preemptive legislation, the remaining sections of this Agreement shall
remain in full force and effect for the duration of this Agreement.
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Section 5. Association Membership
5.1
The Town recognizes the exclusive right of T.E.A. to represent members of the bargaining unit on all matters relating to
employment conditions and employer-employee relations subject to an individual employee’s right to self-representation as
provided by Government Code Sections 3502 and 3503.
5.1.1 Check-Off
T.E.A. shall have the sole and exclusive right to have membership dues deducted from the pay of employees covered by this
MOU.
The Town will deduct from the bi-weekly pay checkpaycheck and remit to T.E.A., the normal and regular T.E.A. membership
dues. Every effort will be made to remit dues to T.E.A. within two (2) weeks of deduction from members’ wages. T.E.A. agrees
to indemnify, defenddefend, and hold the Town harmless against any claims made of any nature and against any suit instituted
against the Town arising from the check-off for the dues, insuranceinsurance, or benefit programs of T.E.A.
5.1.2 Maintenance of Membership
T.E.A. membership is not a mandatory condition of employment for any employee covered by this Agreement. However, any
employee covered by this Agreement who is a T.E.A. member on or after the date this Agreement is ratified by the T.E.A.
membership, shall continue to pay to T.E.A. those dues regularly charged members of T.E.A. in good standing while covered by
this Agreement. Employees wishing to withdraw from T.E.A. membership may do so by giving written notice to T.E.A. during the
thirty (30) days immediately prior to the expiration of this agreement.
Upon return from leaves of absence, the Town shall reinstate the payroll deduction of T.E.A. dues.
Enforcement of this Section shall be the responsibility of T.E.A., utilizing appropriate civil procedures. T.E.A. shall indemnify and
hold the Town harmless from any and all claims, demands or suits, or any other action arising from this Section.
5.1.3 Disclosure and Reporting
T.E.A. shall provide financial documents to the Town as required by law.
5.1.4 Hold Harmless
T.E.A. shall promptly refund to the Town any amounts paid to T.E.A. in error under this Section. T.E.A. expressly agrees to
indemnify and hold the Town, it’sits officers, agents, and employees harmless from any and all claims, demands, costs (including
any costs incurred by the Town in defense of a lawsuit) attorneys’ fees, expenses, damages, or other monetary losses arising out
of or in any way connected with the administration of Section 5. This hold harmless and Indemnity Agreement shall include but
not be limited to legal actions of any sort or nature against the Town based upon or related to this Section, including but not
limited to actions by employees or former employees.
5.1.5 Duty of Fair Representation
T.E.A. shall accord fair representation in all matters to all employees in the unit without regard to whether the particular
employeeemployee is a member of T.E.A. The duty of fair representation shall include but not be limited to all matters related
to collective bargaining, contract administration and contractual grievance processing.
5.1.6 Change of Law
In the event there is a change of law whereby any provision contained herein becomes invalid, or for any reason any provision
of this Section is rendered unlawful by any published Appellate Court Decision, this Section shall be amended to comply with
the change or decision in question.
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5.1.7 Non-Discrimination Against T.E.A. Activities
Town and T.E.A. agree not to discriminate against any employee for activity on behalf of, or for membership or lack thereof in
T.E.A., provided however, such activity is conducted in accordance with this MOU. This shall not affect the right of the Town to
discipline employees for cause in accordance with the Town Code and this MOU. It is understood that Town employees are
accountable first and foremost for their duties of employment and T.E.A. activities are not to interfere with the carrying out of
those obligations.
Section 6. Non-Discrimination
The Town and T.E.A. agree that all provisions of this Agreement shall be applied equally to all employees covered herein without
favor or discrimination because of any protected class including but not limited to race, creed, color, ancestry, sex (sex, gender
based pregnancy/childbirth), gender identity and expression, age (over 40), national origin, political or religious affiliation,
military and veteran status, marital status, sexual orientation, medical condition or physical or mental disability or any other
basis prohibited by applicable federal, State or Town law.
6.1
General Provision Regarding Americans with Disabilities Act (ADA).
6.1.1
Because the ADA requires accommodations for individuals protected under the Act, T.E.A. recognizes the Town's obligation to
comply with all provisions of the ADA on a case–by-case basis.
6.1.2
T.E.A. recognizes that the Town has the legal obligation to meet with the individual employee to be accommodated through the
interactive process before any adjustment is made in working conditions. T.E.A. will be notified of these proposed
accommodations prior to implementation by the Town.
6.1.3
Any accommodation provided to an individual protected by the ADA shall not establish a past practice.
Section 7. Employment
7.1 Step Placement for New Hires
T.E.A. recognizes the sole right of the Town to determine the salary and wage rate for new hires.
7.2 Probationary Period
7.2.1
Probation for New Hires: The probationary period shall be twelve (12) months for all newly hired employees.
7.2.2
Probation for promoted employees: Promoted employees can be considered for satisfactory completion of the probationary
period after twelve (12) or six (6) months at the discretion of the Department Director. Promoted probationary employees shall
have all rights under this Agreement, full and complete access to the grievance procedure, including instances of suspension,
demotiondemotion, and termination. Any permanent employee not satisfactorily completing the probationary period following
a promotion will be reinstated to their previous classification in accordance with the Town Personnel Rules.
7.2.3
All probationary employees will be evaluated quarterly.
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7.3 Performance Evaluations
The Town-authorized employee performance evaluation document and program shall be used for all employee evaluations.
7.3.1
It is intended that performance evaluations take place at least annually as follows:
(a) For employees below top step: no later than 15 days prior to the anniversary date of the employee's date of hire or
the date the employee entered their classification.
(b) For employees at top step: between June 1st and October 1st of each year.
7.3.2
Employee evaluation forms shall include a section to be checked indicating whether an employee agrees or disagrees with
his/her/their evaluation.
7.3.3
All performance evaluations shall be discussed with the employee prior to the evaluation being completed. Employees shall
sign their individual performance evaluations as evidence of discussion having taken place; employee signature does not imply
agreement with the evaluation. An employee may attach separate written comments to his/her/their evaluation.
7.3.4
If an employee does not receive an evaluation on the date it is due and the supervisor subsequently finds that the employee
would have been entitled to a merit increase as of the anniversary date, the merit increase will become effective as of the first
day of the pay period in which the anniversary date occurs.
7.3.5
The Town will make every attempt to see that performance evaluations are completed in a timely manner.
7.4 Pay and Classification System
7.4.1
Consideration for advancement from step-to-step within a range shall occur at intervals of one (1) year in length effective on
each anniversary date. Each employee shall receive an annual performance evaluation. This evaluation will be the basis for
step advancement. Such advancement to the next step shall be authorized if the supervisor and Department Director finds that
the employee is satisfactorily performing the duties of their position as reflected on the annual evaluation form.
7.4.2
If the employee’s performance is not satisfactory as determined by the supervisor’s annual evaluation, the Department Director
shall deny advancement to the next step. The Department Director has the option, at their discretion, based on a
recommendation by the supervisor, to recognize improving performance by granting or denying a half-step increase in lieu of
denying the advancement to the next step for unsatisfactory performance.
7.4.3
If the employee’s performance is exceptional as determined by the annual evaluation of the supervisor on the performance
evaluation form, the Department Director, with the approval of the Town Manager, has the discretion to grant a two-step or
one-and-one-half step increase. It is intended that this be used sparingly so that it can be reserved to recognize the truly
exceptional employee who is achieving journey-level status in their classification (i.e., fully capable of performing all duties of
the position) and can perform at the same level as an employee with the years of experience required to achieve advancement
to the new step if they had advanced one step each year.
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7.5 Promotions
7.5.1
The Town and T.E.A. agree that it is in the best interest of both the Town and its employees to foster promotion of incumbent
employees. The Town will consider the qualifications of incumbent personnel prior to determining whether an open or
promotional examination shall be used to fill a vacancy in T.E.A. represented classifications.
7.5.2
The Town and T.E.A. recognize the Town's sole right to determine the method for the selection of Town employees through
either an open or promotional examination process. If a determination is made by the Town that a promotional examination
will be used to fill a vacant position, any all qualified employees who participate in the examination process shall be allowed
time off from regularly scheduled work in order toto participate in the examination process if the examination process is
scheduled during the employee's normal work period. There shall be no overtime paid for participation in the examination
process.
7.6 Work Day/Week
7.6.1
The normal work dayworkday is defined as no more than eight (8), nine (9), ten (10), eleven (11), or twelve (12) consecutive
hours of work time, with a single lunch break. A normal work dayworkday shall be followed by a minimum of ten (10) hours off.
7.6.2
The work week is defined as forty (40) hours of work during any consecutive seven (7) day period. A minimum of one (1) forty-
eight (48) hour period without scheduled work shall be provided to each employee during any consecutive seven (7) day period
with the exception that employees employed in the Town Library shall not be scheduled less than two (2) consecutive days off
within a seven (7) day period more than thirteen (13) times in a calendar year.
7.6.3
Flex-time work schedules consistent with the definitions of normal work dayworkday and normal work week may be assigned
by the Town at its sole discretion. Flex scheduling is defined as an occasional adjustment to an employee’s work schedule which
does not alter the total number of hours scheduled to be worked per week, but simply alters the time of day those hours are
worked. The Town shall provide no less than fourteen (14) calendar days’ notice to affected employees regarding a change in
regular work schedules. Flex-days shall be identified and approved by the Department Director and Town Manager as part of
the approval of a flex-time work schedule as well as the designation of the forty-eight (48) hour period without scheduled work.
(For holiday refer to 7.7.5.)
7.6.4
Employees may also make requests for temporary changes to their normal work schedule. In those cases, the employee's
schedule may change with the approval of the employee's Department Director (e.g. an earlier start and end of shift or a change
in the number of hours per day), so long as that change does not result in overtime liability to the Town.
7.6.5
The Town has the discretionary right to alter work schedules without notice during emergency situations.
7.7 Alternative Work Schedule
As an alternative to the normal schedule described in the above section, employees may be granted the option to participate in
an Alternative Work Schedule under the following terms and conditions:
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7.7.1
An Alternative Work Schedule (AWS) is defined as:
(a) 9/80 Alternate Work Schedule: An employee schedule of nine separate work days for a total of 80 hours during a
Town-designated fourteen-day pay period, for which the schedule includes working four 9-hour days and one 8-hour
day in one week and working four 9-hour days in the other week. For payroll purposes, the work week will begin and
end between 11:00 a.m. and at 1:00 p.m. on each alternating day off in the fourteen-day pay period.
(b) 4/10 Alternate Work Schedule: An employee schedule of eight separate work days for a total of 80 hours during a
Town-designated fourteen-day pay period, for which the schedule includes working four 10-hour days in one week and
working four 10-hour days in the other week. For payroll purposes, the work week will begin and end at midnight
Saturday.
(c) 3/12 Alternative Work Schedule: An employee schedule of seven separate work days for a total of 80 hours during a
Town-designated fourteen-day pay period, for which the schedule includes 3 twelve-hour days and 1 four-hour day in
one week and 3 twelve-hour days and 1 four-hour day in the other week. For payroll purposes, each employee has a
designated start and end time to begin and end their work week.
7.7.2
The Department Director, with the approval of the Town Manager, has the exclusive authority to designate positions eligible to
participate in the AWS. The decision of the Department Director regarding designation of eligible positions is final and is not
subject to any grievance procedure.
7.7.3
The Department Director and the Town Manager have the exclusive right to terminate the AWS for T.E.A represented
employees, individually and/or collectively. The Town is in no way required to meet and confer with the T.E.A. prior to
terminating the AWS and termination of the AWS is not subject to any grievance procedure. Participating employees will be
provided written notification at least one (1) full pay period prior to termination of the AWS.
7.7.4
Employees who elect to participate in the AWS must receive authorization from their supervisor prior to working any regularly
scheduled day off.
7.7.5
An employee assigned to an AWS may use accrued vacation time, accrued compensatory time off, floating holiday or personal
leave to make up the difference between the provided eight (8) hours of holiday pay and the actual number of regularly
scheduled working hours on a designated holiday. For example, if a holiday falls on a day the employee is scheduled to work
nine (9) or ten (10) hours, s/hethe employee shall receive eight (8) hours of holiday pay and be required to use other accrued
leaves to make up the extra one (1) or two (2) hours for that day to fulfill the regularly assigned schedule.
(a) If a holiday occurs on a day that an employee is not scheduled to work, s/hethe employee shall receive eight (8) hours
of floating holiday, which is not subject to cash-out.
(b) An employee who elects to take a regularly scheduled AWS day off shall use accrued leave time (vacation time, accrued
compensatory time off, floating holiday, or personal leave) for the number of hours they are regularly scheduled to
work (nine (9) hours for 9/80 schedules and ten (10) hours for 4/10 schedules.)
(c) There will be no change in the accrual schedule of maximum accrual level of any paid leaves.
(d) Employees on an AWS will be provided 40 hours of Bereavement Leave, pursuant to the T.E.A. MOU.
(e) A scheduled work dayworkday will include an unpaid meal break of at least one-half hour.
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(f) T.E.A.-represented employees are integral to the success of the AWS and understand the ongoing need to meet the
operational needs of the Town.
7.7.6
A participating employee may request that their AWS be discontinued by providing written notification to their supervisor at
least one (1) full pay period in advance of the termination of the AWS. Changes to an employee’s AWS will coincide with the
beginning of a pay period.
7.8 Exempt Employees
7.8.1
“Exempt Employee” shall be defined as any executive, administrative, or professional employee as defined by Fair Labor
Standards Act (FLSA) that are exempt from the provisions described in Section 11.3 (Overtime). Federal standards concerning
exemptions from federal wage and hour laws shall be used as a guide in determining such exemptions.
7.8.2
Exempt Employees shall be designated by the Town.
7.8.3
Employees with the following job titles shall be designated Exempt Employees:
Senior Planner
7.8.4
Exempt Employees shall not be subject to the terms and conditions described in Sections 7.6 (Work Day/Week) and 7.7
(Alternative Work Schedule) or to any provisions of this MOU that are preempted by the Fair Labor Standards Act.
7.8.5
Notwithstanding this provision, exempt employees are eligible to work a flexible schedule including a 9/80 or 4/10 schedule
subject to the approval of their supervisor.
7.8.6
The Fair Labor Standards Act (FLSA) allows exempt employees to track time on an hourly basis without disqualifying their
exempt status. Therefore, exempt employees who work less than a minimum of 50% of their regularly scheduled hours in a
given day shall utilize leave time for those hours not worked.
7.8.7
Exempt employees are expected to work whatever hours necessary in order to meet the performance expectations of their
Supervisor or Department Head. With the express approval of the Department Head, employees may be permitted to flex their
schedule within the same pay period when a work dayworkday significantly exceeds normal working hours. Flex time is not to
be considered compensatory time off. The Town shall not deduct from an exempt employee’s accrued leave balances for
infrequent partial day absences of less than 4 hours (other than this taken for FSLA intermittent leave purposes).
Section 8. Layoff Policy
8.1 Definitions
For the purposes of this section:
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8.1.1
Layoff: Separation of employees from the active work force due to change in the duties, change in the organization or shortage
of work or funds.
8.1.2
Temporary/Seasonal/Consultant Employee: An at-will non-benefitted employee who is hired on a temporary basis, usually not
to exceed 180 days.
8.1.3
Hourly Employee: An at-will non-benefitted employee who works less than 20 hours per week and not more than 1,000 hours
in a fiscal year.
8.1.4
Probationary Employee: Any employee tentatively appointed to a position who is continuing the testing process to determine
his/her/their fitness for duty. Probationary employees are new employees of the Town or employees under probationary status
because of promotion.
8.1.5
Regular Employee: Benefited employees who successfully complete their probationary period and who regularly work a
minimum of 20 to 40 hours per week.
8.1.6
Displaced Employee: A regular employee who is displaced by a more senior regular employee.
8.1.7
Service seniority: Consecutive time served (based upon number of hours worked) as a regular employee of the Town without
the employee being reinstated as defined in the Town of Los Gatos Personnel Rules and Regulations, Section 10.6
"Reinstatement". Service seniority will not be earned for standby duty, overtime work, during periods of suspension without pay
as a result of disciplinary action, or for non-medical leave without pay. Service Seniority for unpaid military leave will be
considered in the manner prescribed by State and Federal law.
8.1.8
Classification Seniority: The length of time (based upon the number of hours worked) the employee has served as a regular
employee in a classification including any time spent in a higher classification. Classification seniority will not be earned for
standby duty, overtime work, during periods of suspension without pay as a result of disciplinary action, or for non-medical
leave without pay. Classification Seniority for unpaid military leave will be considered in the manner prescribed by State and
Federal law.
8.1.9
Higher classification: A job classification in the same classification series in which the maximum rate of pay is greater than the
maximum rate of pay of the employee's current job classification.
8.2 Town - T.E.A. Cooperative Efforts
8.2.1
When the Town determines that layoffs are imminent, it shall provide written notification to T.E.A. Further, in the spirit of
cooperation, the Town or the T.E.A. may request a meeting to jointly discuss alternatives to layoff, including, but not limited to,
attrition or a reduction in work hours. Every effort shall be made to fill any vacant position(s) in the Town with qualified laid-off
employee(s).
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8.2.2
Notwithstanding the effort to work cooperatively, the Town has the exclusive right to determine the methods, means, numbers
and kinds of personnel by which services are to be provided. The Town's decision to make a reduction in force and/or layoff an
employee(s) is not subject to the duty to meet and confer.
8.3 Order of Layoff & Procedure
8.3.1
Whenever it is determined that a layoff must occur within a job classification, the order of layoff shall be:
(1) temporary/seasonal at-will
(2) hourly at-will
(3) probationary
(4) regular employee
8.3.2
In each type of employment, the employee(s) with the least classification seniority in the affected job classification(s) shall be
laid-off first.
8.3.3
In the event that two or more employees in a job classification have the same level of classification seniority, then the employee
with the least service seniority with the Town shall be laid-off. If there is no distinction between the service seniority of two or
more employees, then the employee with the lowest score on the eligibility list for the current classification shall be laid-off
first.
8.4 Displacement Rights
8.4.1
An employee may displace any other employee in a lower classification which they previously occupied if they have more
service seniority. For a job classification lower than that in which the employee holds regular status, seniority shall be calculated
by adding: (1) classification seniority in higher classifications; (2) classification seniority in the job classification in which the
employee previously worked, and (3) present time spent in the job classification in which the employee is currently working.
8.4.2
Employees who are designated for layoff or displacement may elect, in lieu of layoff or displacement, to be reassigned to a
position in a lower classification. In order to displace an employee with less classification seniority, the employee noticed for
layoff must have held regular status in the classification into which he/she/they is being reassigned. An employee who chooses
to exercise their displacement rights must accept the salary, hours and working conditions of their new position. An employee
will be allowed only one displacement.
8.4.3
An employee who exercises their displacement rights shall be paid in the new job classification the salary range step closest to
the salary range step received immediately prior to displacement, providing there is no increase in salary. If the salary range
step in the lower job classification is Step 5 or lower, future salary step adjustment opportunities shall be made in accordance
with the Town's Personnel Rules. Time served in the job classification from which the displacement occurred shall count toward
the interval required for consideration of salary step advancement.
8.4.4
If an employee with regular status is unable to displace an employee in a lower job classification in which he/she/they held a
regular status, he/she/they shall be laid-off.
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8.4.5
An employee may request layoff in lieu of the opportunity to displace by notifying the Human Resources Department in writing
or email within ten (10) business days after receiving the Town’s certified mailing of notice of layoff. If an employee requests
layoff in lieu of displacement, he/she/they shall forfeit all recall rights except to a vacancy in the same classification from which
the employee was laid-off. In this case, the employee shall be entitled to recall rights for a period of one (1) year from the
effective date of the layoff.
8.4.6
A probationary employee who held regular status in his/her/their previous position, and is affected by a layoff or is displaced by
an employee exercising his/her/their displacement rights, shall return to his/her/their former job classification where
he/she/they held regular status. If a probationary employee does not have regular status in another job classification or has
regular status in another job classification which no longer exists, he/she/they will be laid-off without any right of recall.
8.5 Seniority List
At least ten (10) business days prior to mailing a written notice of layoff, the Town shall provide a seniority list notice to affected
employee(s) and the current President of the T.E.A. bargaining unit. The seniority list notice shall show the names, classification,
classification seniority, service seniority, and the process for reporting discrepancies. The seniority list shall be deemed correct
unless an employee or the T.E.A. notifies the Human Resources Director to the contrary in writing within ten (10) business days
of the delivery and/or mailing of the seniority list.
8.6 Notification of Layoff
The Town shall send by certified mail, return receipt requested, written notice of layoff to all affected employee(s). Such notice
shall be postmarked at least thirty (30) calendar days in advance of the effective date of layoff. The layoff notice shall be mailed
to the employee's address currently on file in the Human Resources Department and shall be deemed appropriate notice. Any
employee who is on a paid or unpaid leave shall be affected by the layoff in accordance with the provisions of this section and in
the same manner as all other employees. With such notice, the employee shall be informed of the rights to which she/he is
entitled and the procedure to be followed. A copy of the notice shall also be provided to the current President of T.E.A.
8.7 Re-Employment Following Layoff/Displacement
8.7.1
When a vacancy occurs in a job classification, the laid-off or displaced employee(s) eligible to return to that job classification
shall be recalled in the inverse order of layoff. Employees with regular status who were laid-off or displaced are eligible to
return to the job classification in which regular status is held, but shall have no recall rights to any job classification in which
probationary status was held at the time of layoff or displacement.
8.7.2
Employee(s) shall be entitled to re-employment rights for a period of one (1) year from the effective date of layoff or
displacement. To expedite re-employment, more than one (1) laid-off/displaced employee may be notified when an opening
occurs. The laid-off/displaced employee(s) will be re-hired in inverse order of layoff. A laid-off/displaced employee shall be
required to meet the qualifications of the classification to which he/she/they is recalled.
8.7.3
An employee who exercises their re-employment rights shall be paid the salary range step they received immediately prior to
layoff/displacement. Future salary step adjustment opportunities shall be made in accordance with the Town's Personnel Rules.
Time served in the job classification since the most recent step increase prior to when the layoff/displacement occurred, shall
count toward the interval required for consideration of salary step advancement.
8.7.4
A laid-off/displaced employee shall lose their re-employment rights for: 1) resignation; 2) retirement; 3) failure to return to
work when recalled by the Town; 4) when the Town has not recalled an employee to work for a period of one (1) year; or 5)
termination for cause.
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8.7.5 Laid-off Employees
The effective date of layoff shall be the employee's last day working at the Town. When a vacancy exists and employees are to
be re-employed, notice of the opening(s) shall be sent by certified mail, return receipt requested, to the last known address on
file in the Human Resources Department. It shall be incumbent upon the laid-off employee to advise the Human Resources
Department in writing, via certified mail, return receipt requested, of any change in address. The laid-off employee shall have
ten (10) business days, following the certified mailing to notify the Town in writing, via certified mail, return receipt requested,
of their intent to return to work.
8.7.6
The laid-off employee shall have a reasonable period of time to return to work, not to exceed thirty (30) calendar days. If the
laid-off employee fails to respond to the notice of re-employment within ten (10) business days, or fails to report to work within
the reasonable time period as set forth above, he/she/they will forfeit all re-employment rights.
8.7.7 Displaced Employees
The effective date of displacement shall be the employee's last day of work in the classification from which he/she/they is
displaced. When a vacancy exists and displaced employees are to be re-employed, notice of the opening(s) shall be sent by
certified mail, return receipt requested, to the last known address on file in the Human Resources Department or by hand
delivery. It shall be incumbent upon the displaced employee to advise the Human Resources Department in writing of any
change in address. The displaced employee shall have five (5) business days, following receipt of certified mailing or hand
delivery of notice, to advise the Town in writing of their intent to return to their former position. If the displaced employee fails
to respond to the notice of re-employment to former position within five (5) business days of receipt of notice, he/she/they will
forfeit all re-employment rights to his/her/their former position.
8.8 Fringe Benefits
Laid-off/displaced employees shall be paid accrued leaves and related benefits in accordance with this Memorandum of
Understanding and applicable Town policies and rules. Employees being re-employed who received a sick leave pay off at the
time of layoff/displacement, shall have the uncompensated portion of their sick leave balance restored; provided, however, that
only those sick leave hours accrued after re-employment shall be applied to sick leave payoff or retiree medical related to a
subsequent termination.
Section 9. Outside Employment
The Town and T.E.A. agree that outside employment of full time T.E.A.-represented employees shall be governed by California
Government Code Sections 1125 -1128 and that the Town shall develop and apply regulations to assure compliance. Outside
employment shall be reviewed and approved by the Department Director and Town Manager on an annual basis.
Section 10. Reclassification
T.E.A. recognizes the sole right of the Town to reclassify positions.
Section 11. Salary and Other Compensation
11.1 Equity Adjustments
In previous contracts, the Town has provided equity adjustments for classifications that were still below market median after
providing across-the-board cost of living increases. Eligible classifications received market adjustment effective in the first full
pay period of the new contract term.
Effective the first full pay period in July 2022, or the first full pay period after Council approval of this MOU, whichever is later,
all classifications will receive an across-the-board market increase of five percent (5.0%), in addition to the cost of living increase
described below in Section 11.3.
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11.2 Town Compensation Policies
Town and T.E.A. agree that this Agreement has been negotiated to provide equity increases to bring positions that were below
market median to the market median. Pprior contracts were negotiated consistent with Town compensation policies. Thethe
following specific Town compensation policies are:
11.2.1
Total compensation to be utilized in the analysis of all Town compensation.
11.2.2
Marketplace consideration in establishing compensation.
11.2.3
Average or above-average total compensation for all Town classifications.
11.2.4
No reduction in individual employee total compensation levels.
11.2.5
On one occasion during the term of this MOU, upon request by the UnionT.E.A., the Parties agree to meet to discuss elements
of future compensation surveys for TEAT.E.A. and ways to collaborate to obtain the best market data for TEAT.E.A.
classifications. The parties agree this is not a reopener and any changes to the MOU on this issue would be by mutual
agreement of the parties.
11.3 Compensation
T.E.A. salaries are reflected in the salary schedules listed in Appendix A.
Effective the first full pay period in July 2022, or the first full pay period after Council approval of this MOU, whichever is later,
the salary rate for all classifications shall be increased by a three percent (3%) cost of living adjustment (COLA).
Effective the first full pay period in July 2023, the salary rate for all classifications shall be increased by three percent (3%).
11.3.1 Contract Ratification Bonus
Effective the first full pay period in July 2022, or the first full pay period after Council approval of this MOU, whichever is later,
all employees shall receive a one-time, non-pensionable lump sum payment of one thousand dollars ($1,000).
11.3.2 Pandemic Related Bonus
Effective the first full pay period of July 2022 or the first full pay period after Council approval of the MOU, whichever is later, all
employees who worked for the Town in 2021 who are employed at the Town as of last day the pay period will receive a one-
time, lump sum payment of $2,500.
11.4 Overtime
11.4.1
When necessary to perform essential work, a Department Director may require an employee to work at any time other than
during regular working hours until such work is completed. Overtime is scheduled solely at the discretion of the Town.
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11.4.2
An employee directed by his/her/their Department Director or the Town Manager to work in excess of forty (40) hours in a
designated work week, shall be compensated at the rate of one and one-half times the employee's regular hourly rate. Hours
charged to available paid leave, shall be counted as time worked for computation of overtime payments. Compensatory time
cannot be used in the pay period in which it is earned. Compensatory time off shall not be regarded as hours worked for the
purposes of overtime calculation.
11.4.3
The Department Director may permit an employee to take compensatory time in lieu of paid overtime. With Department
Director approval, employees shall be permitted to accumulate compensatory time only to a maximum of eighty (80) hours.
The maximum accumulated compensatory time for Communication Dispatchers only shall be one hundred (100) hours. When
the maximum level of compensatory time is reached, overtime shall be paid.
11.4.4
The Town will attempt to avoid scheduling overtime that conflict with an employee's personal plans unless it cannot be avoided.
11.4.5
On or before the pay period which includes December 15 of each calendar year, an employee may make an irrevocable election
to cash out up to 40 hours of CTO (in whole hour increments) which will be earned in the following calendar year at one and one
half times (1.5) the employee’s base rate of pay. On the pay day for the pay period which includes Thanksgiving in the following
year, the employee will receive cash for the amount of CTO the employee irrevocably elected to cash out in the prior year.
However, if the employee’s CTO balance is less than the amount the employee elected to cash out (in the prior calendar year)
the employee will receive cash for the amount of CTO the employee has accrued at the time of the cash out.
11.5 Call Back
11.5.1
A minimum of three (3) hours pay or its equivalent in compensatory time off, at the rate of time and one-half, shall be
guaranteed for every employee, who, after leaving his/her/their place of duty, is required to return to duty without advance
notice of at least fourteen (14) calendar days.
11.5.2
There will be a three (3) hour minimum at the call back overtime rate for Town commission/council meetings which begin (2)
two hours or more than either the start of or end of the employee's regularly scheduled shift. At the employee's option but
with Department Director's approval, employees may flex their schedule at the straight-time rate in-lieu of the call back
provision of this paragraph.
11.6 Deferred Compensation
A Town program of deferred compensation shall be available to T.E.A. represented employees. The Town makes no
representation on the merit of the plan or any of the investment products or instruments which may be offered by the plan.
The responsibility for evaluating the investment options within the plan is the responsibility of the individual participant. The
Town shall not be obligated to offer more than one Deferred Compensation carrier.
11.7 Out-of-Classification Pay
11.7.1
The Town and T.E.A. agree that it is the intent of Town management, whenever possible, to avoid working an employee out of
classification for a prolonged period of time. Compensation for out-of-classification work shall be an additional 5% of the
regular pay of the employee's permanent classification or the first step of the higher classification, whichever is greater. Out-of-
Classification Pay applies only to actual time worked and does not apply to paid leaves.
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11.7.2
Employees appointed to work out-of-class will receive out-of-classification pay beginning the first day of the out-of-classification
assignment. Performance of duties as a vacation relief does not automatically qualify as out-of-classification.
11.7.3
For purposes of this section, an out-of-classification assignment is defined as the full time performance of the essential
functions of an authorized, funded, permanent position in another classification by a qualified employee. "Essential functions"
shall be as defined in the Essential Functions section of the appropriate job specification.
11.7.4
Any employee who believes they are working out-of-class may request a review of their classification.
11.7.5
Training programs mutually agreed to by the Town and T.E.A. which are designed to enhance and/or provide career
development opportunities shall not be subject to this provision.
11.8 Tuition Reimbursement Program
11.8.1
The Town will reimburse T.E.A. employees up to $3,000 per fiscal year toward the cost of books, university/school fees (except
parking) and tuition.
11.8.2
The reimbursement shall be only for courses that are directly related to the employee’s position as determined by the Town
Manager, including general education courses that are generally related to attainment of a job-related degree or certification.
General education courses not generally related to the employee’s position will not be eligible for reimbursement.
Reimbursement shall be taxed pursuant to State and Federal regulations.
11.8.3
Application for tuition reimbursement shall be made to the Town before the course begins. Prior to reimbursement of costs, all
course work must be completed with a passing grade of “C” or equivalent when numerical score or pass/fail is given.
11.8.4
Any employee who terminates employment with the Town within one (1) year from the completion of a class or classes, for
which tuition reimbursement was paid shall refund all tuition paid under this provision, unless required to attend by the
appointing authority. This section shall not apply in cases involving disability, layoff, or death of the employee, or other
unforeseen circumstances as approved by the Appointing Authority on a case-by-case basis.
11.9 Bilingual Incentive Pay
11.9.1
Employees filling classifications specifically requiring bilingual ability and passing the Town's certified examination shall be
compensated at 2.5% above the normal compensation range for the regular classification.
11.9.2
The provision of bilingual pay will be evaluated annually in a manner prescribed by the Town, and continued or discontinued
based on operational need. The decision as to whether bilingual pay will continue or be discontinued shall be made by the
Town Manager, is final and is not subject to grievance or appeal. If bilingual pay is discontinued, the effective date shall be the
beginning of the first full pay period in January.
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11.10 Uniform Allowance
11.10.1
An initial uniform consisting of all items on the Town-approved list shall be supplied by the Town to new Park Services Officer
and Town-designated Community Services Officer and Parking Control Officer employees; thereafter the Town shall provide
incumbent Park Services Officer employees with a uniform allowance of $500 per year and designated Community Service
Officer and Parking Control Officer employees with a uniform allowance of $400 per year to be paid in the payroll check during
January of each year.
The Town shall provide the Building Inspectors and Code Compliance Officers with five (5) polo style shirts bearing an approved
Town logo in a brand and color approved by the Town. The Building Inspectors and Code Compliance Officers shall wear the
supplied shirts each day at work with pants such as khakis or appropriate jeans.
11.10.2
The uniform allowance will be prorated for new employees, except that new employees shall receive a minimum of one-half
(1/2) of the year's uniform allowance if hired after July 1.
In the event that the Police Department requires Communication Dispatchers to wear a uniform, the parties agree to meet and
confer over the impacts and effects of this decision.
11.10.3
T.E.A. recognizes the Town's right to specify uniform and demand that employees be in proper uniform at all times.
11.10.4
In the event that an employee who does not receive a uniform allowance damages his/her/their clothing in the performance of
his/her/their duties, the employee may submit a claim for reimbursement to his/her/their Department Director for the
repair/replacement of damaged articles to the Town.
11.11 POST Certificate
Effective beginning in the first full pay period following ratification and approval, Dispatchers who attain the Dispatcher
Advanced POST certification shall be eligible for five percent (5%) POST certificate pay. This certificate pay shall be PERSable or
not PERSable as determined by PERS.
Section 12. Payroll/Pay Checks
12.1 Payroll Periods
The Town and T.E.A. agree that a biweekly payroll period shall be utilized subject to the following conditions:
12.1.1
Employee pay shall not be withheld more than seven (7) calendar days following the end of the payroll period; however,
overtime may appear on the next payroll period if it is worked following the submittal of time sheets, or during a pay period
with a Town holiday which requires early submittal of time sheets and early distribution (before Friday) of pay checks.
12.1.2
All Town employees shall be compensated on a biweekly basis.
12.2 Pay Checks
(a) The Town shall provide an optional direct deposit system for use by employees.
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(b) Every effort will be made to make pay checks available to employees as soon as checks are signed and ready for
distribution.
Section 13. Holidays
13.1
The following shall be observed as eight (8) hour holidays for members of the unit:
January 1st (New Year's Day)
The 3rd Monday in January (Martin Luther King's Birthday)
The 3rd Monday in February (President's Day)
The last Monday in May (Memorial Day)
July 19 (Juneteenth)*
July 4th (Independence Day)
The first Monday in September (Labor Day)
Thanksgiving Day
The Friday following Thanksgiving Day
December 25th (Christmas Day)
Four (4) hours each on December 24 and 31
Every day declared a holiday by the President or Governor, subject to the Mayor also proclaiming the day as a holiday.
*The Juneteenth holiday will go into effect in calendar year 2023. In recognition of Juneteenth 2022, employees in all
classifications except Communications Dispatchers and Park Services Officers will receive a one-time, non-pensionable $500
lump sum payment in the first full pay period in July 2022, or the first full pay period after Council approval of this MOU,
whichever is later.
13.2
Holidays which fall on Saturday shall be observed on the Friday prior, and holidays which fall on Sunday shall be observed on the
following Monday.
13.3 Holiday Compensation
13.3.1
Employees will receive eight (8) hours of regular pay on a Town-recognized holiday. If the employee's scheduled day off occurs
on a Town- recognized holiday, the employee will receive eight (8) hours of straight-time holiday pay. In lieu of receiving eight
(8) hours of straight-time holiday pay, an employee may elect to receive eight (8) hours of floating holiday hours. This provision
will apply to the Juneteenth holiday beginning in calendar year 2023.
13.3.2 Employees Assigned to Work on a Holiday
Employees who are required to work on a Town-recognized holiday will receive their regular salary, plus compensation of one
and one-half (1.5) times their regular rate of pay. Employees shall have the option of accepting salary or compensatory time off.
This provision will apply to the Juneteenth holiday beginning in calendar year 2023.
13.3.3 Communications Dispatchers and Park Services Officers
Effective the first full pay period of July 2022 or the first full pay period after Council approval of this MOU, whichever is later,
Communications Dispatchers and Park Services Officers shall receive compensation in-lieu of holiday time off equal to four and
six tenths percent (4.6%) of base salary.
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Section 14. Insurance Programs
14.1 Life Insurance
Town to pay premiums on minimum coverage of $50,000 Life and $50,000 Accidental Death benefit. Additional life insurance
may be purchased by the employee.
14.2 Disability Insurance
The Town will provide a Short Term Disability policy effective the 8th calendar day unless hospitalized; coverage of 60% of
weekly earning up to maximum of $1,300/week for 12 weeks. Long Term Disability benefits begin on the 91st day of disability;
coverage of 60% of monthly earnings up to a maximum of $6,000/month.
14.3 Workers' Compensation
Workers’ Compensation benefits shall be provided in accordance with State and Federal law. Effective the 31st day of disability,
the employee may elect to supplement the State mandated benefits with the Town's Short Term/Long Term Disability Insurance
(STD/LTD). STD/LTD benefits will be reduced by the amount of periodic payments the employee is entitled to through Worker's
Compensation.
14.4 Liability Insurance
The Town shall continue to maintain a public officials’ liability insurance policy covering all Town employees in the execution of
their official duties.
14.5 Employee Assistance Program
Premium shall be paid by the Town.
14.6 Unemployment Insurance
The Town will provide State mandated benefits as required by law.
Section 15. Family Medical Insurance and Cash In Lieu Plan
Employees may participate in either the Family Medical Insurance Plan or the Cash In Lieu Plan. Employees shall select either
the Family Medical Insurance Plan or the Cash In Lieu Plan annually during the Town’s open enrollment period, or at any other
time permitted by the Public Employees’ Medical and Hospital Care Act (PEMHCA), such as a qualifying event (e.g., birth of a
child, marriage, spouse losing medical insurance, etc.).
15.1 Health and Welfare Benefits and Rate of Town Contribution
The Town contracts with CalPERS for the purpose of providing employees and their eligible dependents with medical insurance
benefits. The Town’s maximum monthly contribution for each eligible active employee shall be equal to the minimum employer
contribution required under PEMHCA, currently $149 per month, as may be adjusted by CalPERS from year to year.
15.2 Cafeteria Plan
During the term of the MOU, the Town agrees to maintain a Cafeteria Plan, pursuant to Section 125 of the Internal Revenue
Code, for the purpose of providing eligible active employees with access to various health and welfare benefits. Benefits
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available through the Cafeteria Plan include medical insurance, dental insurance, and vision insurance.
15.3 Town Contribution to Medical Insurance
The Town will provide active employees with a medical allowance equal to 100% of the cost of the “Employee Only” Kaiser Bay
AreaRegion 1 Medical Insurance Program premium offered by PEMHCA. For dependents, Town will pay 90% of the difference
between Kaiser Employee Only and Kaiser level of participation (Employee Plus & One Dependent or Employee & Two+
DependentsFamily, depending on family status). If the employee chooses medical coverage under a program more expensive
than Kaiser Region 1Bay Area, the employee will pay the difference between the Town-provided medical allowance and the cost
of the more expensive program through payroll deduction.
The Town’s contribution towards medical insurance set forth in Section 15.1 (the PEMHCA minimum) will be deducted from the
amount of contribution provided by this Section (15.3).
15.4 Dental Insurance
For employees choosing this option in lieu of the cash in lieu plan, the Town will pay 100% of the Delta Dental DPO PPO Plan
premium less a $15.00 employee contribution. If the premium cost of the dental plan exceeds the Town contribution, the
employee shall pay through payroll deduction the difference between the monthly premium and the amount contributed by the
Town. The Town will pay 100% of the premium for employees choosing to participate in the DeltaCare USA Plan.
15.5 Vision Insurance
Vision insurance is available through Vision Service Plan (VSP). Employees shall be enrolled in the Town’s vision care health plan.
The Town shall pay for employee-only coverage. At their own cost, employees may enroll eligible dependents upon hire, during
open enrollment and/or when a qualifying event occurs.
15.6 Cash In Lieu Plan
Employees have the option of choosing all available coverages or, upon providing proof of other medical coverage, may choose
to opt out of the Town’s coverage and be provided with cash in lieu.
Employees who choose to receive the cash in lieu must first show proof of alternative minimum essential medical coverage for
the employee and employee’s tax family (individuals for whom the employee expects to claim a personal exemption deduction).
Individual coverage, and individual coverage from Covered California does not qualify as alternative minimum essential
coverage under this section. Employees must provide reasonable evidence of alternative minimum essential coverage each
plan year, during open enrollment. The Town will not make the cash payment if it knows or has reason to know that the
employee or tax family does not have alternative minimum essential coverage. Any amount received in cash is taxable.
Employees choosing to receive taxable cash will have the option of receiving it in two equal amounts in December and June, or
the first two paychecks of each month (24 times a year).
15.6.1 Amounts
(a) Employees hired prior to November 15, 2004 shall be provided cash in lieu of medical benefits in the amount of $800
per month ($9,600 annually).
(b) Employees hired on November 15, 2004 or later shall be provided cash in lieu of medical benefits in the amount of
$400 per month ($4,800 annually).
15.7 Retiree Health
The Town provides retiree health benefits in accordance with the PEMHCA for employees who qualify as eligible PERS retirees
who receive a PERS retirement allowance and are PEMHCA annuitants entitled to such benefits under the PEMHCA.
The Town’s maximum monthly contribution for each eligible annuitant shall be equal to the minimum employer contribution
required under the PEMHCA, currently $149 per month, as may be adjusted by CalPERS from year to year. The provisions of
PEMHCA will govern medical insurance coverage for annuitants.
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15.8 Health Reimbursement Account (HRA)Retiree Health Benefit for Eligible Retirees
Hired before August 22, 2018
An employee hired prior to August 22, 2018 (this includes employees , or provided with a final offer and confirmation of
employment prior to August 22, 2018)ratification and approval of this agreement, is eligible for HRA retiree health benefits in
accordance with this Section.
15.8.1
The employee completed at least five years of continuous service with the Town; and
15.8.2
The employee retired from the Town taking a service or disability retirement from CalPERS as a retiree receiving a PERS
retirement allowance and is a PEMHCA annuitant; and,
15.8.3
The employee must actually draw a CalPERS pension within ninety (90) days of separation from the Town, provided the
employee remains with the Town’s health plan through COBRA.
15.8.4
The amount of the supplemental retiree health benefit allowance will be equal to 100% of the cost of the premium for Kaiser
Bay AreaRegion 1 Retiree Only and 90% of the difference between the Kaiser Bay AreaRegion 1 Retiree Only and Kaiser Bay
AreaRegion 1 Retiree & Plus One Dependent level of participation.. For the Retiree & Two Plus DependentsOne or More Plan,
the Town will pay $1,947.16 per month, as of the 2022 plany year. This amount will increase by $100.00 each year until it is
equal to the active employee contribution. dependents, the Town will pay $1,443.45 per month towards a Retiree Plus One plan
and $1,547.16 per month towards a Retiree Plus One or More plan, as of August 22, 2018. This amount will increase by $100.00
each year until it is equal to the active employee contribution.
15.8.5
The Town’s contribution towards retiree health insurance set forth in Section 15.7 (the PEMHCA minimum) will be deducted
from the amount of contribution provided by this Section (15.8.4).
15.8.6
Employees retiring on or after February 1, 2016 and upon becoming eligible for Medicare will cease to receive any retiree health
benefit allowance under this Section (15.8.4) and will become eligible for Supplemental Medicare equal to the cost of Kaiser
Senior Advantage Bay AreaRegion 1 Medicare rates up to a maximum of 100% Retiree Only, 90% for Retiree & Plus One
Dependent or 90% for Retiree & Two Plus One or MoreDependents less the amount of the employee contribution provided
under Section 15.7 (the PEMHCA minimum). This benefit is available to the eligible retired employee only after he or she has
reached the age of 65 and is Medicare eligible or as otherwise specified by law.
15.8.7
The benefits described by this Section (15.8) will be provided to annuitants through CalPERS by means of a Health
reimbursement Account (HRA).
Section 16. Public Employees’ Retirement System (PERS)
16.1 Retirement Formulas
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16.1.1
Effective December 16, 1992, the Town's contract with the Public Employees’ Retirement System (PERS) provided the 2% at 55
retirement formula for eligible Miscellaneous Town employees (regular employees).
16.1.2 Tier 1
Effective July 1, 2008, the Town amended its contract with PERS to include a 2.5% at 55 PERS retirement benefit (Gov’t Code
21354.4).
Employees in Tier 1 shall:
Contribute 8% towards the employee share of the PERS retirement benefit.
Use PERS single highest year compensation.
- Be eligible for PERS Fourth Level 1959 Survivor Benefits.
16.1.3 Tier 2
For employees hired on or after September 15, 2012, including employees hired after January 1, 2013 who do not meet the
definition of “new member” under Gov’t Code 7522.04(f) the Town will provide Tier 2 retirement benefits to include the 2% at
60 retirement benefit (Gov’t Code 21353).
Employees in Tier 2 shall:
Contribute 7% towards the employee share of the PERS retirement benefit.
- Use PERS 36-month final average compensation.
- Be eligible for PERS Fourth Level of 1959 Survivor benefits.
16.1.4 Tier 3
For employees hired on or after January 1, 2013, who meet the definition of new member under Gov’t Code 7522.04(f), the
Town will provide Tier 3 benefits to include the 2% at 62 retirement benefit.
Employees in Tier 3 shall:
Contribute an amount that is equal to one half (1/2) the normal cost of his/herhis/her/their CalPERS pension, or the current
contribution rate of similarly situated employees, whichever is greater (Gov’t Code 7522.30(c)).
- Use the 36-month final average compensation (Gov’t Code 20037).
- Be eligible for PERS Fourth Level of 1959 Survivor benefits.
16.2
The Town has adopted a Resolution materially the same as that recommended by the Public Employees’ Retirement System to
implement the provisions of 414 (h)(2) of the Internal Revenue Code (IRC). T.E.A. accepts the terms of this Resolution and
acknowledges that this Resolution will apply to all current and future members of T.E.A.
Section 17. Benefits Accrual/Payment
There shall be no accrual or payment of benefits during unauthorized leave, suspension without pay, or leave without pay
except as mandated by the state or federal law.
Section 18. Vacation and Leaves
18.1 Vacation Scheduling
All vacation scheduling is subject to the approval of the Town. Employees are required to request time off in advance. The
earlier requests are submitted, the greater likelihood the request will be honored.
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Every attempt will be made by the Town to honor pre-approved vacations. If a pre-approved vacation is canceled due to the
scheduling needs of the Town, the Town will reimburse the employee for verified deposits for non-reimbursable reservations.
All verifications must be submitted prior to the vacation formally being canceled.
18.2 Vacation Accrual
All employees hired by the Town and represented by T.E.A. during the term of this agreement shall accrue vacation hours as
follows:
0 to 36 months 10 days per year (3.08 hours per pay period)
37 to 60 months 16 days per year (4.92 hours per pay period)
61 to 120 months 21 days per year (6.46 hours per pay period)
121 to 180 months 23 days per year (7.08 hours per pay period)
181 months & over 25 days per year (7.70 hours per pay period)
18.2.1
Maximum accrual shall be 310 hours. If an employee has reached the maximum accrual level, no more vacation will be accrued
until the accrual level is reduced below the maximum amount.
18.2.2 Vacation Cash-Out
On or before the pay period which includes December 15 of each calendar year, an employee may make an irrevocable election
to cash out up to one hundred and sixty (160) hours of accrued vacation (in whole hour increments) which will be earned in the
following calendar year at the employee’s base rate of pay. On the pay day for the pay period which includes Thanksgiving in
the following year, the employee will receive cash for the amount of the vacation the employee irrevocably elected to cash out
in the prior year. However, if the employee’s vacation leave balance is less than the amount the employee elected to cash out
in the prior calendar year the employee will receive cash for the amount of vacation leave the employee has accrued at the time
of the cash out.
18.3 Sick Leave
Sick leave shall accumulate at the rate of eight (8) hours per month (3.70 hours per pay period); to a maximum of one-thousand
(1,000) hours. The Town may require T.E.A. represented employees to provide a doctor's statement as proof of illness for any
use of sick leave beyond one (1) working day.
18.4 Sick Leave Cash-Out Program
This program applies only to employees hired before August 22, 2018 or provided with a final offer confirmation of employment
prior to ratification and approval of this agreement.
18.4.1
Employees who terminate employment with the Town, or once a year in the first payroll check of December, following
compliance with this contract and the cash-out process for active employees may cash-out their accumulated sick leave as
follows:
1 - 59 months of service at 25%
60 - 119 months of service at 37.5%
120 months or more of service at 50%
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Cash out process for active employees: On or before the pay period which includes December 15 of each calendar year, an
employee may make an irrevocable election to cash out sick leave in accordance with the above amounts and the requirements
of section 18.4.2 below. Eligible cash out hours will be cashed out in whole hour increments which will be earned in the
following calendar year at the employee’s base rate of pay. In the first payroll check of December in the following year, the
employee will receive cash for the amount of the eligible sick leave the employee irrevocably elected to cash out in the prior
year. However, if the employee’s sick leave balance is less than the amount the employee elected to cash out in the prior
calendar year the employee will receive cash for the amount of sick leave the employee has accrued at the time of the cash out
contingent upon compliance with 18.4.2.
18.4.2
In order to be eligible for the sick leave cash-out program, an employee must have a sick leave accrual balance of at least 150
hours after the annual cash-out. Employees working less than full-time shall have the 150 hour balance pro-rated, based on
hours worked. Employees who terminate with a sick leave balance of at least 150 hours may cash-out their entire balance
pursuant to the schedule above.
18.4.3
All employees hired prior to November 15, 2004 who retire may convert up to 100% of this accumulated sick leave to a dollar
equivalent at their hourly rate of pay at the time of retirement. This amount shall be held in an account. The employee's
portion of medical payment will be withheld from their monthly retirement payment by PERS. The Town agrees to pay the
retiree quarterly on the first pay period of January, April, July, and October of each year after retirement. The first payment will
be prorated to the nearest quarter. The retiree's portion of medical payments will be paid from this account by the Town until
all monies are depleted from the account or the retiree dies, whichever occurs first.
18.4.4
This account will not accrue interest and will not be paid in cash to the retiree or any beneficiaries. The retiree shall be
responsible for 100% of their share of future medical insurance payments once the account is exhausted.
18.5 Personal Leave
Twenty-four (24) hours will be available per calendar year. Personal leave may not be accumulated from year-to-year nor is it
subject to cash-out at any time.
Exempt employees are eligible for an additional twenty-four (24) hours of personal leave for (a maximum of forty-eight (48)
hours) each calendar year.
18.6 Medical/Maternity/FMLA/CFRA
The Town recognizes that State Government Code 12945 requires the recognition of maternity as a bona fide non-job-related
disability with applicable leave benefits. The Town also recognizes State Government Code 12945.2 and Federal Government
Code 29 regarding the Family and Medical Leave Act. The Town may, at its discretion, approve leave beyond the specific
amount provided by the law.
18.7 Bereavement Leave
A maximum of forty (40) hours is available for death of each member of the immediate family. Immediate family is defined as
parent, step-parent, parent in law, spouse/domestic partner, child, step-child, foster child, dependent, sibling, grandparent,
step-grandparent, and grandchild.
18.8 Disaster Leave
Leave will be available for employees for disasters declared by Federal, State, County, or Town officials if those disasters affect
all or a portion of the area within twenty (20) miles of Town Hall. Leave is subject to scheduling by the Town. Employees shall
be allowed to charge time off to any accrued leaves.
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18.9 Military Leave
Military leave and benefits shall be granted in accordance with State and Federal law, including the continuation of employee
salary and benefits.
18.10 Jury Duty
Employee salary and benefits are to be continued during periods of Court-assigned jury duty. If an employee receives
compensation from the Courts, the employee shall return to the Town all compensation received for jury duty, except mileage
or travel related compensation.
18.11 Leave Without Pay
18.11.1
Leave without pay shall be subject to approval of the Department Director.
18.11.2
An employee who is on leave without pay for more than two (2) pay periods shall not earn any employment benefits (including,
but not limited to such benefits as vacation leaves, medical benefits, sick leaves, retirement credits for time employed or
seniority entitlement of any kind) for the duration of such leave. An employee who is on leave without pay for more than (2)
pay periods will have the ability to continue medical, dental and vision coverage at their own expense in accordance with the
Town's Administrative Policy on benefit retention.
18.11.3
Vacation, sick leave or time worked shall not be used intermittently during an extended leave to interrupt a determination that
an employee is on leave with no pay. In accordance with State Government Code 12945 and 12945.2 and Federal Government
Code 29, Section 26.01, 26.54, no employee on maternity or family leave will be disadvantaged with respect to seniority
entitlement.
18.12 Leave Balances
18.12.1
Vacation, and compensatory time off will be paid off upon resignation, retirement, or dismissal at 100% value effective the last
full work-day with the Town. This will terminate the employee's status as an employee of the Town. Sick leave shall be cashed
out per Section 18.4.1.
18.12.2
In the event of an employee's death, accrued vacation and compensatory time leave balances shall be paid to the employee's
estate. Sick leave shall be paid to the estate per Section 18.4.1.
18.13 Catastrophic Time Bank
If an employee, or an employee's spouse/domestic partner, or child becomes catastrophically ill or injured, the employee may
request that a catastrophic time bank be established. If the employee is not capable, a Department Director, after consulting
with and receiving approval from an employee’s family member, may request that a catastrophic time bank be established. The
request shall be in writing and shall be directed to the Human Resources Director. The bank will enable other employees to
donate accrued CTO or vacation to the requesting employee. All donations must be made in writing on a form prescribed by the
Town and shall be limited to no more than four (4) hours per donation, in one (1) hour increments. Time donated will be
calculated at the donor’s hourly rate of pay. Donations to an established catastrophic time bank are final and shall not be
returned to the donor.
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Section 19. Grievance Procedure
Grievances shall be defined as alleged violations of this Agreement or disputes regarding interpretations, application, or
enforcement of this Agreement.
No act or activity which may be grievable may be considered for resolution unless a grievance is filed in accordance with the
procedure contained herein within thirty (30) calendar days of the date the grievable activity occurred or the date the employee
could reasonably have known such activity occurred.
19.1
The parties agree that all grievances will be processed in accordance with the following procedure:
Step 1
Any employee who has a grievance shall first try to get it settled informally through discussion with his/her/their immediate
supervisor without undue delay. Every effort shall be made to find an acceptable solution at the lowest possible level of
supervision. If the employee is not satisfied with the informal resolution, then a formal grievance must be filed within thirty
(30) calendar days of the date the grievable activity occurred or the date the employee could reasonably have known such
activity occurred.
Step 2
If, after such discussion the employee does not believe the grievance has been satisfactorily resolved, he/she/they may file a
formal appeal in writing to his/her/their Department Director within ten (10) calendar days after receiving the informal decision
of his/her/their immediate supervisor.
The Department Director receiving the formal appeal shall enter his/her/their written decision within ten (10) calendar days
after receiving the appeal.
Step 3
If, after receipt of the written decision of the Department Director the employee is still dissatisfied, he/she/they may appeal the
decision of the Department Director to the Town Manager. Such appeal shall be made by filing a written appeal to the Town
Manager within fourteen (14) calendar days after receipt of the written decision of the Department Director. The Town
Manager shall review the decision of the Department Director, and render his/her/their decision within thirty (30) calendar days
after the appeal is made.
Step 4
If, after receipt of the written decision of the Town Manager the employee is still dissatisfied, he/she/they may appeal the
decision of the Town Manager to the Personnel Board. Such appeal shall be made by filing a written appeal to the Chair of the
Personnel Board within fourteen (14) calendar days after receipt of the written decision of the Town Manager.
The Personnel Board shall establish a hearing date within thirty (30) calendar days of receipt of the written appeal. The
Personnel Board shall conduct a closed hearing giving opportunity for presentation by the employee or his/her/their
representative and the Town Manager. The Personnel Board shall render a written decision within thirty (30) calendar days
after the appeal is made. If, after receipt of the written decision of the Personnel Board, the employee is still dissatisfied,
he/she/they may appeal the decision of the Personnel Board to the Town Council. Such appeal shall be made by filing a written
appeal with the Mayor. The Mayor shall schedule a closed hearing with the Town Council within thirty (30) calendar days after
receipt of the appeal. At this hearing, the employee and the Town Manager may make presentations. The Town Council
decision shall be final. The Town Council shall render a decision within thirty (30) calendar days after the hearing. An open
hearing may be conducted by the Personnel Board or Town Council with mutual consent of the Town and person(s) filing the
grievance.
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19.2
The time limitations for filing and responding to grievances may be waived or extended by written mutual agreement of the
parties. If either party to the grievance so requests, an informal hearing shall be conducted at the Department Director or Town
Manager appeal levels. Employees may be represented by counsel or other person at any stage in the grievance process.
19.3
If the employee does not receive a response from the supervisor or Department Director within the time limits specified in steps
1 and 2 above, the grievance will proceed for review to the next level in the grievance procedure.
Section 20. Miscellaneous Issues
20.1 Benefit Application
Employee benefits shall be prorated to a level equal to the regularly scheduled hours. For example, an employee working a
regular schedule of 32 hours per week will earn 80% of the benefits provided to an employee working a regular schedule of 40
hours per week.
20.2 Personnel Rules
It is the Town’s intent to make the Personnel Rules readily available. In this regard the Rules will be available on line and in the
Town Clerk’s Office.
20.3 Disciplinary Rules
In regard to Disciplinary Rules, refer to Sections 12 and 13 of the Town’s Personnel Rules.
20.4 Mileage Reimbursement
Employees using personal vehicles on official Town business shall be reimbursed at the mileage rate established by the I.R.S.
Private vehicles used for Town business shall comply with all applicable California Vehicle Code Sections commencing with
Section 16430 through 16484 pertaining to "Insurance or Proof of Ability to Respond to Damages."
Section 21. Terms Specific to Communications Dispatcher
Training pay: Communication Dispatchers assigned to train and evaluate newly hired Communication Dispatchers will receive a
premium pay of 5% for the actual hours worked while providing authorized training.
In addition, sections in the agreement specific to Communications Dispatchers include (1) Overtime section 11.4.3 and (2)
Holiday Compensation section 13.3.3.
Section 22. Town Vehicles
Town vehicles are not to be taken home.
Section 23. Closure Days with Paid Leave Allowed
T.E.A. understands that the Town Manager, for budgetary constraints or for operational efficiency, may close all nonessential
services and permit employees to use paid leaves. For example, the Town Manager may institute the closure of nonessential
services between the Christmas and New Years’ holidays. The Town Manager shall provide at least six-months advance notice
prior to making the decision to institute closure of non-essential services between the Christmas and New Years’ holidays.
However, nothing in this section shall restrict the Town Manager’s right to make the decision to institute the closure of non-
essential services between Christmas and New Year’s with less notice where unforeseen circumstances occur.
In regards to these closure days:
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23.1
Employees performing essential services and scheduled to work on the Closure Days will receive straight-time pay for hours
worked, unless the hours worked represent overtime (more than forty [40] hours per week).
23.2
At their election, employees who are not scheduled to work may utilize accrued paid vacation, compensatory time off, or
personal leave to cover the closure hours. Leave must be requested in the manner provided in the MOU. Employees who use
paid leave will accrue sick leave, vacation and CalPERS credit while on leave.
23.3
While employees have the option to utilize paid vacation, compensatory time off, or personal leave, they are also permitted to
take leave without pay (LWOP). Employees who take LWOP will maintain their health, life and disability insurance, as well as
any medical cash allocations. Employees who utilize LWOP will not accrue sick leave, vacation or CalPERS credit while on LWOP.
23.4
If an employee requests to work during the closure days due to hardship (e.g., the employee is out of leave and is financially
unable to take time without pay), the Department Director will first try to assign the employee in their own department. If a
suitable assignment is not available in the employee’s own department, the Town Manager maintains the management right to
place the employee in an alternative assignment for the closure period.
If an employee requests to work during the closure days the Department Director will approve the request to work in their
regular assignment unless there is a concern about the safety of the employee that cannot be adequately addressed. However,
the Town Manager maintains the management right to place the employee in an alternative assignment for the closure period.
23.5
The Town Manager maintains the management right to determine essential and nonessential services.
Section 24. Complete Agreement
The parties acknowledge that during the negotiations that resulted in this MOU, each had the unlimited right and opportunity
to make proposals with regard to the terms and conditions of employment, and that the understandings and agreements
contained in this MOU were arrived at after that full opportunity. This MOU may only be amended during its term by the
parties' mutual agreement in writing unless compelled by State or Federal law. This MOU is intended to encompass all matters
subject to meeting and conferring between the Town and T.E.A., and it supersedes and replaces any and all past practices,
whether directly referred to or otherwise addressed in any way in this MOU.
Section 25. Successor MOU
The Town and T.E.A. agree that an initial meet and confer regarding the negotiations for a successor MOU shall take place no
later than 120 days prior to the termination date of the current Memorandum of Understanding.
The Town will pay for training in interest-based bargaining for the negotiating teams and to provide a neutral third-party
facilitator, mutually agreed to by the parties.
Page 373
Town of Los Gatos TEA Classifications
Salary Schedule for Fiscal Year 2022/23
Effective July 10, 2022
Adopted by Town Council June 7, 2022
Class Code Classification Title Rate Type Range TE1 Step 1 Step 2 Step 3 Step 4 Step 5 Step 6
4310 Account Technician Hourly 08 $36.88 $38.72 $40.66 $42.69 $44.82 $47.64
3580 Administrative Assistant Hourly 04 $30.87 $32.41 $34.03 $35.73 $37.52 $39.98
4620 Assistant Engineer Hourly 25 $49.12 $51.58 $54.16 $56.87 $59.71 $63.28
4420 Assistant Planner Hourly 12 $42.71 $44.85 $47.09 $49.44 $51.91 $55.09
4600 Associate Civil Engineer Hourly 27 $55.88 $58.67 $61.60 $64.68 $67.91 $71.89
4661 Associate Engineering Technician Hourly 14 $43.02 $45.17 $47.43 $49.80 $52.29 $55.48
4400 Associate Planner Hourly 20 $49.70 $52.19 $54.80 $57.54 $60.42 $64.02
4410 Building Inspector Hourly 24 $47.82 $50.21 $52.72 $55.36 $58.13 $61.62
4430 Code Compliance Officer Hourly 10 $42.76 $44.90 $47.15 $49.51 $51.99 $55.17
4530 Communication Dispatcher Hourly 17 $45.31 $47.58 $49.96 $52.46 $55.08 $58.41
4535 Communication Dispatcher Lead Hourly 19 $57.24 $60.10 $63.11 $66.27 $69.58 $73.64
4540 Community Services Officer Hourly 11 $36.36 $38.18 $40.09 $42.09 $44.19 $46.98
4615 Construction Project Manager Hourly 26 $53.61 $56.29 $59.10 $62.06 $65.16 $69.00
4660 Engineering Technician Hourly 13 $39.05 $41.00 $43.05 $45.20 $47.46 $50.41
4705 Environmental Programs Specialist Hourly 08 $36.88 $38.72 $40.66 $42.69 $44.82 $47.64
4200 Events and Marketing Specialist Hourly 06 $32.53 $34.16 $35.87 $37.66 $39.54 $42.10
3501 Executive Assistant Hourly 08 $36.88 $38.72 $40.66 $42.69 $44.82 $47.64
4900 IT Systems Administrator Hourly 23 $53.24 $55.90 $58.70 $61.64 $64.72 $68.54
4915 IT Technician Hourly 07 $39.91 $41.91 $44.01 $46.21 $48.52 $51.53
4810 Librarian Hourly 16 $40.81 $42.85 $44.99 $47.24 $49.60 $52.66
4830 Library Assistant Hourly 03 $30.13 $31.64 $33.22 $34.88 $36.62 $39.03
4807 Library Customer Service Specialist Hourly 01 $28.23 $29.64 $31.12 $32.68 $34.31 $36.61
4805 Library Customer Service Supervisor Hourly 08 $36.88 $38.72 $40.66 $42.69 $44.82 $47.64
4825 Library Specialist Hourly 06 $32.53 $34.16 $35.87 $37.66 $39.54 $42.10
4819 Library Tech Specialist Hourly 15 $39.55 $41.53 $43.61 $45.79 $48.08 $51.06
3181 Office Assistant Hourly 01 $28.23 $29.64 $31.12 $32.68 $34.31 $36.61
4640 Park Services Officer Hourly 11 $36.36 $38.18 $40.09 $42.09 $44.19 $46.98
4560 Parking Control Officer Hourly 01 $28.23 $29.64 $31.12 $32.68 $34.31 $36.61
4440 Permit Technician Hourly 09 $35.53 $37.31 $39.18 $41.14 $43.20 $45.94
TEA 8%Page 1 of 2 Approved 6/07/2022
ATTACHMENT 1
Page 374
Town of Los Gatos TEA Classifications
Salary Schedule for Fiscal Year 2022/23
Effective July 10, 2022
Adopted by Town Council June 7, 2022
Class Code Classification Title Rate Type Range TE1 Step 1 Step 2 Step 3 Step 4 Step 5 Step 6
4425 Planning Technician Hourly 11 $36.36 $38.18 $40.09 $42.09 $44.19 $46.98
4550 Police Records Specialist Hourly 05 $31.60 $33.18 $34.84 $36.58 $38.41 $40.91
4630 Public Works Inspector Hourly 18 $44.47 $46.69 $49.02 $51.47 $54.04 $57.32
4450 Senior Building Inspector Hourly 27 $55.88 $58.67 $61.60 $64.68 $67.91 $71.89
4525 Senior Communication Dispatcher Hourly 29 $50.76 $53.30 $55.97 $58.77 $61.71 $65.38
4831 Senior Library Page Hourly 02 $19.85 $20.84 $21.88 $22.97 $24.12 $25.91
4565 Senior Parking Control Officer Hourly 11 $36.36 $38.18 $40.09 $42.09 $44.19 $46.98
4405 Senior Planner Hourly 28 $57.24 $60.10 $63.11 $66.27 $69.58 $73.64
4610 Senior Public Works Inspector Hourly 26 $53.61 $56.29 $59.10 $62.06 $65.16 $69.00
4662 Sr. Engineering Technician Hourly 24 $47.82 $50.21 $52.72 $55.36 $58.13 $61.62
Reflects General Increase of 8%
TEA 8%Page 2 of 2 Approved 6/07/2022Page 375
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: 21
DATE: June 2, 2022
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Approve a Labor Agreement Between the Town of Los Gatos and the
American Federation of State, County, and Municipal Employees and
Authorize the Town Manager to Execute the Memorandum of Understanding
RECOMMENDATION:
Staff recommends that the Town Council approve a Labor Agreement between the Town of Los
Gatos and the American Federation of State, County, and Municipal Employees (AFSCME) and
authorize the Town Manager to execute the Memorandum of Understanding.
BACKGROUND:
In accordance with the Town’s Employer-Employee Relations Resolution No. 1974-41,
representatives of the Town and AFSCME have met and conferred in good faith and within the
scope of representation in an effort to reach agreement for a successor Memorandum of
Understanding (MOU). The revised agreement will be distributed and posted on June 3, 2022
as an Addendum to this report. The MOU is a labor agreement that identifies specific terms
and conditions of employment applicable to the employees represented by that agreement.
DISCUSSION:
The Town’s current MOU with AFSCME expires on June 30, 2022. In March 2022, the Town
and AFSCME began negotiating for a successor agreement. A tentative agreement for a two-
year term was reached in April and AFSCME membership ratified on April 29, 2022.
Page 378
PAGE 2 OF 3
SUBJECT: Approve a Labor Agreement Between the Town of Los Gatos and the
American Federation of State, County, and Municipal Employees and
Authorize the Town Manager to Execute the Memorandum of Understanding
DATE: June 2, 2022
DISCUSSION (continued):
Major provisions of the agreement include and are not limited to:
1. Term: July 1, 2022 to June 30, 2024
2. Salary:
a. Effective the first full pay period of July 2022 (effective July 10, 2022), or the first
full pay period after Council approval, whichever is later, the Town will provide a
3% cost of living adjustment (COLA) and a 4.5% market increase for a total of
7.5%. The market increase is intended to bring AFSCME classifications to or near
market median.
b. Effective in the first full pay period of July 2023, the Town will provide a 3%
salary increase.
3. Pandemic Related Bonus: Effective the first full pay period of July 2022, or the first full
pay period after Council approval, whichever is later, all employees who worked for the
Town in 2021, who are employed at the Town as of the last day of the pay period will
receive a one-time, lump sum payment of $2,500.
4. Juneteenth Holiday: Effective after Council approval of this MOU, June 19th
(Juneteenth) shall be added to Section 29 of the MOU as an observed paid eight (8) hour
holiday for employees represented by AFSCME.
5. Tuition Reimbursement: The Town will reimburse AFSCME employees up to $3,000 per
fiscal year toward the cost of books, university/school fees (except parking) and tuition
for courses directly related to the employee’s position as determined by the Town
Manager. Prior to reimbursement, all course work must be completed with a passing
grade of “C” or equivalent
The Town and AFSCME have also agreed to various MOU language updates. The MOU will be
distributed and posted on June 3, 2022 as an Addendum to this report. These updates clarify
existing language, delete obsolete language, and ensure compliance related to the Town’s
contract for retirement and medical benefits provided under the California Public Employees’
Retirement System (CalPERS) and the Public Employees’ Medical and Hospital Care Act
(PEMHCA).
CONCLUSION:
The AFSCME agreement has been prepared within the parameters provided to Town’s
negotiators by the Town Council and has been ratified by the AFSCME membership. It is
recommended that the proposal be approved, and the Town Manager be authorized to execute
the MOU.
Page 379
PAGE 3 OF 3
SUBJECT: Approve a Labor Agreement Between the Town of Los Gatos and the
American Federation of State, County, and Municipal Employees and
Authorize the Town Manager to Execute the Memorandum of Understanding
DATE: June 2, 2022
FISCAL IMPACT:
The anticipated fiscal impact for the 3% cost of living increase ($46,000) and, 4.5% market
increase ($133,000) in FY 2022/23 is $179,000. The anticipated fiscal impact of $1,000 non-
pensionable one-time payment and the one-time, lump sum pandemic related bonus payment
of $2,500 in FY 2022/23 is $38,500.
FISCAL IMPACT (continued):
The total cost impact for FY 2022/23 will be absorbed in the Town’s existing operating budget.
Funding to support the FY 2023/24 ongoing cost each year 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.
Attachment:
1. Salary Schedule for AFSCME effective July 10, 2022
Page 380
Town of Los Gatos AFSCME Classifications
Salary Schedule for Fiscal Year 2022/23
Effective July 10, 2022
Adopted by Town Council June 7, 2022
Class
Code Classification Title Rate
Type
Range
AF1 Step 1 Step 2 Step 3 Step 4 Step 5 Step 6
6619 Assistant Equipment Mechanic Hourly 09 $33.37 $35.04 $36.79 $38.63 $40.56 $42.59
6620 Equipment Mechanic Hourly 03 $38.38 $40.30 $42.32 $44.44 $46.66 $48.99
6618 Supervising Equipment Mechanic Hourly 08 $44.14 $46.35 $48.67 $51.10 $53.66 $56.34
6670 Facility Technician Hourly 02 $35.71 $37.50 $39.38 $41.35 $43.42 $45.59
6600 Lead Parks & Maintenance Worker Hourly 07 $40.75 $42.79 $44.93 $47.18 $49.54 $52.02
6650 Parks & Maintenance Worker Hourly 05 $32.79 $34.43 $36.15 $37.96 $39.86 $41.85
6660 Parks & Maintenance Worker Trainee Hourly 04 $26.78 $28.12 $29.53 $31.01 $32.56 $34.19
6605 Senior Parks & Maintenance Worker Hourly 06 $35.68 $37.46 $39.33 $41.30 $43.37 $45.54
6610 Town Arborist Hourly 03 $38.92 $40.87 $42.91 $45.06 $47.31 $49.68
Reflects General Increase of 7.5%.
AFSCME 8%Page 1 of 1 Approved 6/7/2022
ATTACHMENT 1
Page 381
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: 21
ADDENDUM
DATE: June 3, 2022
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Approve a Labor Agreement Between the Town of Los Gatos and the
American Federation of State, County, and Municipal Employees and
Authorize the Town Manager to Execute the Memorandum of Understanding
REMARKS:
Attachment 3 contains the draft Memorandum of Understanding.
Attachment Distributed with the Staff Report:
1. Salary Schedule for AFSCME effective July 10, 2022
Attachment Distributed with this Addendum:
2. Memorandum of Understanding (redline)
Page 382
10096186.1 LO007-005
TOWN OF LOS GATOS
AND
AMERICAN FEDERATION OF STATE, COUNTY AND MUNICIPAL EMPLOYEES
(AFSCME)
MEMORANDUM OF UNDERSTANDING
JULY 1, 2022 - JUNE 30, 2024
ATTACHMENT 2
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10096186.1 LO007-005
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Town of Los Gatos American Federation of State, County and Municipal Employees July 1, 2022 – June 30, 2024
10096186.1 LO007-005
MEMORANDUM OF UNDERSTANDING
BETWEEN
THE TOWN OF LOS GATOS
AND
AMERICAN FEDERATION OF STATE, COUNTY AND MUNICIPAL EMPLOYEES (AFSCME)
THIS AGREEMENT IS ENTERED INTO AS OF JULY 1, 2022, BETWEEN THE TOWN OF LOS GATOS, HEREINAFTER
REFERRED TO AS THE "TOWN", AND THE LOS GATOS “AMERICAN FEDERATION OF STATE, COUNTY AND
MUNICIPAL EMPLOYEES”, HEREINAFTER REFERRED TO AS "AFSCME".
Pursuant to Town Resolution 1974-41 of the Town of Los Gatos and Section 3500 et. seq. of the Government Code,
the duly authorized representatives of the Town and AFSCME, having met and conferred in good faith concerning
the issues of wages, hours, and terms and conditions of employment, as herein set forth, declare their agreement
to the provisions of this Memorandum of Understanding.
FOR AFSCME:
Carol McEwan
Business Agent
Sherrie Olsen
Parks & Maintenance Worker
AFSCME President
____________________________________
Thomas Lettiere
AFSCME Secretary Treasurer
TOWN OF LOS GATOS:
Laurel Prevetti
Town Manager
___________________________________
Arn Andrews
Assistant Town Manager
__
Salina Flores
Human Resources Director
Lisa S. Charbonneau
Liebert Cassidy Whitmore
APPROVED AS TO FORM:
___________________________________
Gabrielle Whelan
Town Attorney
Page 385
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10096186.1 LO007-005
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10096186.1 LO007-005
Table of Contents
(to be updated with correct sections and page numbers after Town Council consideration)
TOWN OF LOS GATOS .................................................................................................. 1
AND 1
AMERICAN FEDERATION OF STATE, COUNTY AND MUNICIPAL EMPLOYEES
(AFSCME) ....................................................................................................................... 1
MEMORANDUM OF UNDERSTANDING ....................................................................... 1
JULY 1, 2022 - JUNE 30, 2024 ....................................................................................... 1
Section 1. Purpose ........................................................................................................... 1
Section 2. Term ................................................................................................................ 1
Section 3. Union Rights .................................................................................................... 1
Section 4. Savings Clause ............................................................................................... 2
Section 5. Union Dues ..................................................................................................... 2
Section 6. Management Rights ........................................................................................ 3
Section 7. Town Employer-Employee Relations Resolution ............................................ 3
Section 8. Equal Employment Opportunity ....................................................................... 3
Section 9. Non-Discrimination .......................................................................................... 3
Section 10. Salary ....................................................................................................... 3
Section 11. Other Compensation ................................................................................ 4
11.1 Out-of-Classification Pay ....................................................................................... 4
Section 12. Payroll Practices ....................................................................................... 5
Section 13. Retirement Benefits .................................................................................. 5
13.3 2% at 62 (Public Employees’ Pension Reform Act of 2013 [PEPRA]) ................... 6
Section 14. Health and Welfare Benefits and Rate of Town Contribution ................... 7
Section 15. Workers’ Compensation ........................................................................... 9
Section 16. Deferred Compensation ........................................................................... 9
Section 17. Uniforms ................................................................................................... 9
Section 18. Safety Equipment ................................................................................... 10
Section 19. Mileage ................................................................................................... 10
Section 20. Work Schedule ....................................................................................... 10
Section 21. Overtime ................................................................................................. 11
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Section 22. Call Back ................................................................................................ 12
Section 23. Standby .................................................................................................. 12
Section 24. Emergency Work .................................................................................... 13
Section 25. Work Furlough Program ......................................................................... 13
Section 26. Vacation Schedule ................................................................................. 14
Section 27. Vacation Cash-Out ................................................................................. 14
Section 28. Sick Leave .............................................................................................. 14
Section 29. Holidays ................................................................................................. 16
Section 30. Personal Leave ...................................................................................... 16
Section 31. Maternity Leave/Family Leave/Medical Leave ....................................... 16
Section 32. Catastrophic Time Bank ............................................................................. 16
Section 33. Bereavement Leave .................................................................................. 16
Section 34. Military Leave ......................................................................................... 16
Section 35. Personal Emergency Leave ................................................................... 17
Section 36. Jury Duty ................................................................................................ 17
Section 37. Leave Without Pay ................................................................................. 17
Section 38. Accrual of Benefits ................................................................................. 17
Section 39. Notice of Vacancies ................................................................................ 17
Section 40. Promotions ............................................................................................. 17
Section 41. Probationary Period ................................................................................ 18
Section 42. Outside Employment .............................................................................. 18
Section 43. Attendance ............................................................................................. 18
Section 44. Personnel Files ....................................................................................... 18
Section 45. Performance Evaluations ....................................................................... 18
Section 46. Seniority ................................................................................................. 19
Section 47. Layoff Policy ........................................................................................... 19
Section 48. Layoff Reinstatement ............................................................................. 20
Section 49. Contracting Out ...................................................................................... 21
Section 50. Safety Committee ................................................................................... 21
Section 51. Safety ..................................................................................................... 21
Section 52. Physical Examinations and Tests ........................................................... 21
Section 53. Grievance Procedure ............................................................................. 22
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Step 3 22
Section 54. Disciplinary Procedure ........................................................................... 22
Section 55. Unpaid Furloughs ................................................................................... 26
Section 56. Closure Days with Paid Leave Allowed .................................................. 26
Section 58. Comprehensiveness of Agreement .......................................................... 27
Appendix A – AFSCME Salary Schedule
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Page 1 10096186.1 LO007-005
TOWN OF LOS GATOS
AMERICAN FEDERATION OF STATE, COUNTY AND MUNICIPAL EMPLOYEES
MEMORANDUM OF UNDERSTANDING
ON SALARIES, FRINGE BENEFITS AND WORKING CONDITIONS
Section 1. Purpose
The Town and the Union agree that the purpose of this Memorandum of Understanding is to promote and provide harmonious
relations, cooperation, and understanding between the Town and the employees represented by the Union; to provide an
orderly and equitable means of resolving disputes that may arise concerning this Agreement; and to set forth the full
agreements of the parties reached as a result of meeting and conferring in good faith regarding matters within the scope of
representation pursuant to the State Government Code and the Town Employer-Employee Relations Resolution.
Section 2. Term
This Memorandum of Understanding shall commence on July 1, 2022 and terminate on June 30, 2024.
Section 3. Union Rights
3.1 Advance Notice
Except in cases of emergency as provided in this subsection the Union, if affected, shall be given reasonable advance written
notice, normally thirty (30) calendar days of any ordinance, policy resolution, rule or regulation directly relating to matters
within the scope of representation proposed to be adopted or amended by the Town and shall be given the opportunity to meet
and confer as required by the Meyers Milias Brown Act with the appropriate management representatives prior to adoption.
In cases of emergency when the foregoing procedure is not practical or in the best public interest, the Town may adopt or put
into practice immediately such measures as are required. At the earliest practicable date thereafter the Union shall be provided
with the notice described in the preceding paragraph and be given an opportunity to meet with the appropriate management
representatives. The Union shall timely raise any issues arising under this subsection 3.2 No Discrimination
The Town and Union agree that neither will discriminate in any way against employees covered by this Agreement because of
their membership and/or activities on behalf of the Union.
3.3 Stewards
The Town agrees to recognize two (2) duly appointed Union Stewards and two (2) duly appointed alternate Stewards for
purposes of Union representation. The Union shall provide the Town with a list of those duly appointed individuals. The
Steward or Union Officer shall distribute to all new unit employees material(s) furnished for such purpose by the Union.
3.4 Representation
Upon request of an employee covered by this Agreement, the Steward and/or Union representative shall be present during
meetings which the employee reasonably anticipates will involve that individual employee in disciplinary matters. To the extent
possible, disciplinary and grievance matters affecting employees shall be considered during normal working hours and with pay.
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3.5 Access to Premises
The designated Union business representative, for performance of official duties, shall not be denied access to Town premises
subject to that representative first advising Town management that he/she/they/they is on the premises and subject to not
interfering with the work duties of Town employees. The Union will be allowed reasonable use of Town facilities with advance
notice and approval from the Town for meetings in accordance with Town policies and procedures.
3.6 Bulletin Boards and Union Literature
The Union shall have the right to use the Corporation Yard Bulletin Board and employee mailboxes for posting and distribution
of Union materials.
3.7 Release Time
As long as there is no disruption of work, the Town shall provide two (2) AFSCME-authorized union representatives with up to
20 hours of release time each year for the purpose of attending Union conventions, conferences and union-sponsored training programs. The use of release time will have no impact on accrual of paid leave, seniority, completion of probation and eligibility
for health and welfare benefits, or pension benefits.
3.8 New Hire Information
The Town will notify the Union of the name, classification, unit and work location of all new hires into the positions in the
classifications represented by AFSCME within the first full pay period of the new hire’s starting date.
3.9 Orientation
An AFSCME Union representative will be allowed 15 minutes of release time for the purpose of providing new member
information to individuals newly-hired into classifications represented by AFSCME.
Section 4. Savings Clause
If any provision or the application of any provision of this agreement as implemented should be rendered or declared invalid by
any final court action or decree or by reasons of any preemptive legislation, the remaining sections of this agreement shall
remain in full force and effect for the duration of this agreement.
Section 5. Union Dues
5.1 Certification
The Town shall withhold Union dues from employees’ salary transmit such dues to the Union, provided the Union certifies in
writing to the City that the Union has and will maintain each employee’s voluntary authorization for such deductions.
5.2 Payroll Deduction
The Town shall not be obligated to put into effect any new, changed, or discontinued deduction until the pay period
commencing thirty (30) days or longer after the Union certifies such new, changed or discontinued deduction.
5.3 Indemnification and Hold Harmless
The Union shall indemnify and hold harmless the Town against any and all suits, claims, demands, and liabilities that may arise
out of, or by reason of, any action or omission of the Town in complying with this Section.
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Page 3 10096186.1 LO007-005
Section 6. Management Rights
The Union recognizes that the rights of the Town include, but are not limited to, the exclusive right to determine the mission of
its constituent departments, commissions and boards; set the standards of service; determine the procedures and standards of
selection for employment and promotion; direct its employees; take disciplinary action; relieve its employees from duty
because of lack of work or other legitimate reasons; maintain the efficiency of governmental operations; determine the
methods, means, and personnel by which government operations are to be conducted; determine the content of job
classifications; take all necessary action to determine when an emergency exists and to carry out its mission in emergencies
including the requirement that employees work overtime; and exercise complete control and discretion over its organization
and the technology of performing its work.
Section 7. Town Employer-Employee Relations Resolution
The Union and the Town recognize the existing language in Town Resolution 1974-41 as it governs all aspects of labor relations
in the Town. Any changes in Resolution 1974-41 which apply to AFSCME Local 101 will be made after meeting and conferring
when required by the Meyers Milias Brown Act with the Union.
Section 8. Equal Employment Opportunity
The Union and Town support equal employment opportunity programs.
Section 9. Non-Discrimination
The Town and Union agree that all provisions of this Agreement shall be applied equally to all employees covered herein
without favor or discrimination because of any protected class including but not limited to race, color, national origin, ancestry,
religion, religious creed, physical disability, mental disability, medical condition, genetic information, marital status, sex, sexual
orientation, gender, gender based pregnancy/childbirth, gender identity, gender expression, age (over 40), or political affiliation
or any other basis prohibited by applicable Federal, State or Town law. The parties further agree that Section 9 and 9.1 shall not
be subject to the Grievance Procedure provided in this Agreement.
9.1 General Provisions Regarding Americans with Disabilities Act
Because the ADA requires accommodations for individuals protected under the Act, the Union recognizes the Town's obligation
to comply with all provisions of the ADA on a case by case basis.
9.1.1
The Union recognizes that the Town has the legal obligation to meet with the individual employee to be accommodated through
the interactive process before any adjustment is made in working conditions. The Union will be notified of these proposed
accommodations prior to implementation by the Town.
9.1.2
Any accommodation provided to an individual protected by the ADA shall not establish a past practice. 9.2 Non-Discrimination for Union Activity
The Town and Union agree that they, and each of them, shall not discriminate against any employee because of membership or
lack of membership in the Union, or because of any authorized activity on behalf of the Union. The parties further agree that
this Section 9.2 may be subject to the Grievance Procedure provided in this Agreement.
Section 10. Salary
10.1
Employees will receive pay adjustments as follows:
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Page 4 10096186.1 LO007-005
10.1.1
Effective the first full pay period in July 2022, or the first full pay period after Council approval of this MOU, whichever is later,
the Town will provide a three percent (3%) cost of living adjustment (COLA) and a four and one half (4.5%) market increase,
totaling a seven and one half percent (7.5%) salary adjustment for all bargaining unit members. The market increase is intended
to bring AFSCME classifications to or near the market median based on data in a compensation survey of the relevant labor
market completed by outside consultant Bryce & Associates in April 2022.
In addition, effective in the first full pay period of July 2022, or the first full pay period after Council approval of this MOU,
whichever is later, bargaining unit employees shall receive a one-time (non-PERSable) payment of one thousand dollars ($1000).
10.1.2
Effective the first full pay period of July 2023, the Town will provide a three percent (3%) salary increase for all bargaining unit
members.
10.2 Pandemic Related Bonus
Effective the first full pay period of July 2022, or the first full pay period after Council approval of this MOU, whichever is later,
the Town will provide a one-time, non-pensionable, lump sum payment of $2,500 to all employees who worked for the Town in
2021 who are employed at the Town as of the last day of the pay period the payment is issued.
Section 11. Other Compensation
11.1 Out-of-Classification Pay
Out-of-Classification pay is defined as employees who by written assignment perform the essential functions of a position with a
higher salary classification than in which they are regularly employed shall receive higher compensation as set forth below. The
Town and the Union agree that it is the intent of Town management, whenever possible, to avoid working an employee out of-
classification for a prolonged period of time.
An employee assigned to work out-of-classification shall be compensated from the first day of the out-of-classification
assignment. Out-of-classification pay shall be a minimum of five percent (5%), above the employee's regular salary; or the
lowest rate of the higher classification, whichever is greater.
Training programs mutually agreed to by the Town and the Union which are designed to enhance and/or provide career
development opportunities shall not be subject to this provision.
Any employee who believes they are working out of classification may request a review of their classification.
11.2 Street-Sweeper Specialty Pay
Employees assigned to operate the street sweeper shall be paid a $5 per hour differential above their base hourly rate. This
special assignment pay shall be paid for actual time worked and does not apply to non-worked hours such as vacation, holidays,
personal or sick leave.
In accordance with CalPERS regulations, this special assignment pay is reported as PERSable income for those employees who
are assigned to operate the street sweeper on a routine and consistent basis. Thus, employees who operate the street sweeper
on back-up basis shall be paid the premium in accordance with this agreement but the premium will not be reported as
PERSable income.
The Department Director retains the right to determine street sweeper assignments in accordance with the needs of the
department. Employees assigned to operate the street sweeper must meet the qualifications of the job and demonstrate
proficiency to operate the equipment.
11.3 Class A Driver’s License Pay and Tanker Endorsement Pay
Employees who maintain a valid California Commercial Class A Driver’s License shall be paid $30 per month.
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Employees who maintain both a valid California Commercial Class A Driver’s License and a Tanker Endorsement shall be paid
$75 per month.
11.4 Certificate Pay
Employees in the classifications of Parks and Maintenance Worker and Lead Parks and Maintenance Worker who possess a
current Certified Pest Control Applicator Certificate shall receive $50 per month in certificate pay. Employees in the
classifications of Parks and Maintenance Worker and Lead Parks and Maintenance Worker who possess a current Backflow
Tester Certification Certificate shall receive $50 per month in certificate pay.
11.5 Cellphones
The Town’s cellphone stipend program applies to AFSCME bargaining unit employees.
Section 12. Payroll Practices
12.1 Payroll Periods and Availability of Checks
Employees shall be compensated on a biweekly basis.
Employee pay shall not be withheld more than seven (7) days following end of payroll period; however, overtime may appear on
the next payroll period if it is worked following the submittal of time sheets, or during a pay period with a Town holiday which
requires early submittal of time sheets and early distribution (before Friday) of paychecks. This may also occur at the end of the
fiscal and calendar year.
Every effort will be made to make paychecks available to employees as soon as checks are signed and ready for distribution.
12.2 Automatic Deposit
The Town shall provide an optional direct deposit system for use by employees.
12.3 Deduction and Accrual Information
Payroll deductions and leave balances shall appear on paychecks and be current to the latest payroll period.
Section 13. Retirement Benefits
The Town contracts with the California Public Employees’ Retirement System (CalPERS or PERS) to provide Town employees
with retirement benefits.
13.1 2.5% at 55 (Classic Tier One Retirement)
For employees hired with reciprocity or CalPERS membership prior to 1/1/13 without a break in CalPERS service of six months or
more or hired and enrolled in CalPERS membership prior to 9/15/12, the Town provides the 2.5% at 55 PERS retirement benefit
(Gov’t Code 21354.4).
Employees in this tier shall contribute 8% towards the retirement benefit.
Employees in this tier are subject to the CalPERS Single Highest Year compensation formula (Gov’t Code 20042).
13.2 2% at 60 (Classic Tier Two Retirement)
For employees hired and enrolled on or after 9/15/12 with reciprocity or membership prior to 1/1/13 without a break in
CalPERS service of six months or more, the Town provides the 2% at 60 retirement benefit (Gov’t Code 21353).
Employees in this tier shall contribute 7% towards the retirement benefit.
Employees in this tier are subject to the CalPERS 36-month final average compensation (Gov’t Code 20037).
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13.3 2% at 62 (Public Employees’ Pension Reform Act of 2013 [PEPRA])
For employees hired on or after January 1, 2013, who meet the definition of new member under Gov’t Code 7522.04(f), the
Town provides the 2% at 62 retirement benefit.
For new members hired on or after January 1, 2013, the Town will use the 36-month final average compensation (Gov’t Code
7522.32(a)).
New members hired on or after January 1, 2013 shall pay an amount that is equal to one half (1/2) the normal cost of
his/her/their CalPERS pension, or the current contribution rate of similarly situated employees, whichever is greater. (Gov’t
Code 7522.30(c)).
13.4 EPMC, 414(h)(2) IRC
Effective June 24, 2001, the Town ceased its participation in the Public Employees’ Retirement System “Employer Paid Member
Contribution” (EPMC) provision. Concurrently, the Town began paying in salary to the employees covered by this MOU the
equivalent dollar amount of the former EPMC (7% of salary).
The Town has adopted a Resolution materially the same as that recommended by the Public Employees’ Retirement System to
implement the provisions of 414 (h) (2) of the Internal Revenue Code (IRC). AFSCME accepts the terms of this Resolution and
acknowledges that this Resolution will apply to all current and future members of AFSCME.
13.5 Military Service Purchase
The Town shall permit employees to purchase PERS credit for military service time.
13.6 Retiree Health Benefit for Eligible Retirees Hired on or after July 1, 2018
The Town provides retiree health benefits in accordance with the Public Employees’ Medical and Hospital Care Act (PEMHCA)
for employees who qualify as eligible PERS retirees who receive a PERS retirement allowance and are PEMHCA annuitants
entitled to such benefits under the PEMCHA.
The Town’s maximum monthly contribution for each eligible annuitant shall be equal to the minimum employer contribution
required under the PEMHCA, currently $149 per month, as may be adjusted by CalPERS from year to year. The provisions of the
PEMHCA will govern medical insurance coverage for annuitants.
13.7 Retiree Health Benefit For Eligible Retirees Hired before July 1, 2018.
An employee hired prior to July 1, 2018 is eligible for Health Reimbursement Account (HRA) retiree health benefits in accordance with this Section.
13.7.1
The employee completed at least five years of continuous service with the Town; and
13.7.2
The employee retired from the Town taking a service or disability retirement from CalPERS as a retiree receiving a PERS
retirement allowance and is a PEMHCA annuitant; and
13.7.3
The employee must actually draw a CalPERS pension within ninety (90) days of separation from the Town, provided the
employee remains with the Town’s health plan through COBRA.
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13.7.4
The amount of the supplemental retiree health benefit allowance will be equal to 100% of the cost of the premium for Kaiser
Bay Area Retiree Only and 90% of the difference between the Kaiser Bay Area Retiree Only Plus One levels of participation. The
Town will pay up to $1,947.16 per month as of the 2022 plan year. This amount will increase by $100.00 each year until it is
equal to the active employee contribution.
13.7.5
The Town’s contribution towards retiree health insurance set forth in Section 13.6 (the PEMHCA minimum) will be deducted
from the amount of contribution provided by this Section (13.7.)
13.7.6
Employees retiring on or after February 1, 2016 and upon becoming eligible for Medicare will cease to receive any retiree health
benefit allowance under this Section (13.7) and will become eligible for Supplemental Medicare equal to the cost of Kaiser
Senior Advantage Bay Area Medicare rates up to a maximum of 100% Retiree Only, 90% for Retiree Plus One or 90% for Retiree
Plus One or More, less the amount of the employer contribution provided under section 13.6 above (the PEMHCA minimum).
This benefit is available to the eligible retired employee only after he or she has reached the age of 65 and is Medicare eligible
or as otherwise specified by law.
13.7.7
The benefits described by this Section (13.7) will be provided to annuitants through CalPERS by means of a Health
Reimbursement Account (HRA).
13.7.8
Employees hired on and after July 1, 2018, who retire from the Town are not eligible to receive an HRA retiree health benefit
allowance from the Town.
Section 14. Health and Welfare Benefits and Rate of Town Contribution
The Town contracts with CalPERS for the purpose of providing employees and their eligible dependents with medical insurance
benefits. The Town’s maximum monthly contribution for each eligible active employee shall be equal to the minimum employer
contribution required under PEMHCA, currently $149 per month, as may be adjusted by CalPERS from year to year.
14.1 Cafeteria Plan
During the term of the MOU, the Town agrees to maintain a Cafeteria Plan, pursuant to Section 125 of the Internal Revenue
Code, for the purpose of providing eligible active employees with access to various health and welfare benefits. Benefits
available through the Cafeteria Plan include medical insurance, dental insurance, vision insurance and life insurance benefits.
14.1.1 Dental
Employees choosing this option instead of Cash In Lieu will be provided 100% of the Delta Dental PPO Plan premium less a
$15.00 employee contribution. If the premium cost of the dental plan exceeds the Town contribution, the employee shall pay
through payroll deduction the difference between the monthly premium and the amount contributed by the Town. The Town
will pay 100% of the premium for employees choosing to participate in the DeltaCare USA Plan.
14.1.2 Medical
The Town will provide active employees with a medical allowance equal to 100% of the cost of Kaiser Bay Area Medical
Insurance Program premium at the Employee Only level of participation, offered by the Public Employees' Retirement System
Health Benefit Medical Program. For dependents, Town will pay 90% of the cost for dependents at the level of Kaiser Bay Area
and employee will pay 10% of the dependent cost.
As such, Town will pay 90% of the difference between Kaiser Bay Area Employee Only and Kaiser level of participation
(Employee Plus One or Employee Plus One/More, depending on family status.)
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Example: Employee Only Premium is $800; and Employee Plus One Premium is $1,400
Employee Plus One Premium ($1400) minus Employee Only Premium ($800) = $600
Town pays 90% of $600 = $540
Employee pays 10% of $600 = $60
If the employee chooses medical coverage under a program more expensive than Kaiser Bay Area, the employee will pay the
difference between the Town-provided medical allowance and the cost of the more expensive program through payroll
deduction.
The Town’s contribution towards medical insurance set forth in Section 13.6 (the PEMHCA minimum) will be deducted from the
amount of contribution provided by this Section (14).
14.1.3 Vision
The Town shall pay for employee-only coverage under the Town’s Vision Service Plan (VSP). Employees may enroll eligible
dependents at their own cost. 14.1.4 Cash In Lieu
Employees have the option of choosing all available coverages or, upon providing proof of other medical coverage, may choose
to opt out of the Town’s coverage and be provided with a cash allocation equal to Four Hundred Twenty Dollars ($420) per
month.
Employees who choose to receive the cash must first show proof of alternative minimum essential medical coverage for the
employee and employee’s tax family (individuals for whom the employee expects to claim a personal exemption deduction).
Individual coverage, and individual coverage from Covered California does not qualify as alternative minimum essential
coverage under this section. Employees must provide reasonable evidence of alternative minimum essential coverage each
plan year, during open enrollment. The Town will not make the cash payment if it knows or has reason to know that the
employee or tax family does not have alternative minimum essential coverage. Any amount received in cash is taxable.
Employees choosing to receive taxable cash will have the option of receiving it in two equal amounts in December and June, or
the first two paychecks of each month (24 times a year).
14.2 ACA Reopener
The union agrees at the Town’s request, to meet and confer on any changes that are within the mandatory scope of bargaining
related to the Town’s sponsored Family Medical Insurance and Cash In Lieu benefits that may be related to the compliance and
implementation of the Affordable Care Act (ACA).
14.3 Supplemental Health and Welfare Benefits
14.3.1 Life Insurance
Coverage of $50,000 plus $50,000 accidental death: Town to pay for premium. Additional life insurance may be purchased by
the employee equal to one to five times the employee's base salary, not to exceed $300,000. Dependent life insurance is
available at the employee’s cost.
14.3.2 Disability Insurance
Short Term Disability Policy effective 8th calendar day; coverage of 60% of weekly earnings up to maximum of $1,300 per week
for 12 weeks. Long Term Disability benefits begin on the 91st day of disability; coverage of 60% of monthly earnings up to a
maximum of $6,000/month.
14.3.3 Employee Assistance Program
Premiums shall be paid by the Town.
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14.3.4 Unemployment Insurance
The Town will provide State-mandated benefits as required by law.
Section 15. Workers’ Compensation
The Town and Union agree that employees who sustain illness or injury arising out of and in the course of their Town
employment shall receive benefits equal to those mandated by the State of California, and the California Labor Code. Any
difference between State mandated benefits and the individual's regular Town salary, if any, shall be charged to the employee's
accrued sick leave balance. If sick leave is not available, other accrued leave balances shall be charged. If an employee does not
have accrued leave balances, the employee shall receive only the State-mandated benefits.
The policies and procedures affecting the use of workers compensation will be developed and administered by the Town
Personnel Officer in accordance with State law. There is a three day (calendar) waiting period to receive benefits, unless the
employee is hospitalized or out for more than two weeks. In the event of a non-hospitalized on-the-job injury verified as such
and eligible for worker's compensation disability payments, the Town will compensate employees for the first three day waiting
period.
Section 16. Deferred Compensation
The Town shall continue to make a Deferred Compensation program available to employees. The Town makes no
representation on the merit of the plan or any of the investment products or instruments which may be offered by the plan.
The responsibility for evaluating the investment options within the plan is the responsibility of the individual participant. The
Town shall not be obligated to offer more than one Deferred Compensation carrier.
Section 17. Uniforms
Uniform shirts shall be provided to employees at the expense of the Town and shall be required to be worn during working
hours. The Town shall determine appropriate shirt colors. Employees shall wear denim jeans as part of their uniform.
Employees shall purchase jeans at their own expense. Employees are to report to work in uniforms that are neat, clean, and in
good repair. In the event an employee’s uniform is damaged or in need of replacement as determined by the supervisor, the
item may be replaced in advance of the annual schedule.
17.1 Uniform Items for All Employees
On an annual basis, the Town will supply each employee with seven (7) shirts, one standard rain jacket, rain pants, rain boots and cold-weather jackets. Cold weather jackets will be replaced if needed as determined by the employee’s supervisor. Uniform
items will be provided annually by November 1. Employees shall be responsible to launder uniform items.
17.1.1 Optional Shorts
Upon employee request and supervisor approval, the Town will furnish each employee up to (2) pairs of shorts per year.
Employees are permitted to wear shorts only when shorts do not pose a safety hazard. The supervisor has the authority to
determine when shorts are acceptable.
17.1.2 Optional Weather-Protective Headwear
Upon request by the employee, the Town will supply up to two (2) approved caps or hats per year. No other type of headwear
is permitted to be worn during work hours.
17.2 Uniform Items for Mechanics
In addition to the items listed above, the Town will provide coveralls to each mechanic. The coveralls will be laundered by the
Town.
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Section 18. Safety Equipment
The Town shall retain the right to establish minimum safety and quality standards for safety equipment, clothing and steel-toed
safety shoes to be used while performing assigned tasks. If an employee is at work without the required clothing or safety
equipment, that employee will not be paid until s/he is at the worksite with the required clothing and safety equipment.
18.1 Steel-Toed Safety Shoes
On an annual basis, the Town will provide one pair of steel-toed safety shoes per employee. The steel-toed safety shoes must
be worn at all times except for classroom training or administrative assignments. In the event an employee’s safety shoes are
damaged, worn, or unsafe as determined by the supervisor, the shoes may be replaced in advance of the annual schedule. The
not-to-exceed amount will be $350 for AFSCME employees. If the safety shoe selected by the employee is less than the
amount provided by the Town, the employee may apply the difference toward shoelaces, socks, ergonomic insoles, or other
safety-shoe related accessories at the time of purchase.
Section 19. Mileage
Employees using personal vehicles on official Town business shall be reimbursed at the mileage rate established by the I.R.S.
Private vehicles used for Town business shall comply with the California Vehicle Code.
Section 20. Work Schedule
20.1 Standard Work Day
The standard workday shall be 8.5 consecutive hours including a 15-minute morning and a 15-minute afternoon work break,
and a forty (40) minute lunch break, which shall include any wash-up time. The standard workday shall begin at 7:00 AM and end at 3:30 PM, the last ten (10) minutes of which shall be available for wash-up time. Minimum seventy-two (72) hours’ notice
will be provided by the Town for non-emergency changes in schedule.
20.2 Use of Town Vehicle
An employee whose lunch or break period begins at a work location other than the Corporation Yard may use the job site Town
vehicle to go to lunch or obtain food. Travel time in connection with this privilege shall not extend the lunch period beyond the
forty (40) minutes including wash-up time, nor extend a break period beyond fifteen (15) minutes.
20.3 Early Start Pay
Non-overtime work begun prior to 7:00 AM shall receive additional compensation of 5% above the employee’s base hourly rate
for the entire shift.
The Early Start premium will not apply if the employee’s start time is adjusted at the request of the employee under a flexible
work arrangement authorized by the department.
20.4 Work Week
The Town has no intention of changing existing work weeks at the present time.
The Town’s decision to change existing work weeks will involve but not be limited to the following considerations:
(a) Failure to meet the performance objectives of the work unit.
(b) Change in service level.
Prior to a change in work week (except in the event of an emergency) the Town will give a minimum two weeks’ notice to
affected employees. Further, the Town agrees to meet in good faith to attempt to resolve any hardships caused by a change in
work week.
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20.5 4-10 Schedule for Vehicle Maintenance Shop
The Town agrees to maintain a 4/10 (4 day per week/10 hours per day) plan for the vehicle maintenance shop as long as
Monday and Friday in each workweek can be covered by a mechanic. In addition, this program shall be evaluated quarterly to
determine if productivity and coverage meet the Town's repair needs. This will determine if the program will continue.
20.6 Work Schedule and Holidays
Represented employees are entitled to eight (8) hours of paid time off in observation of each holiday listed in Section 29.
20.6.1 Hours Worked on an Observed Holiday
Employees assigned to work on an observed holiday shall be paid time-and-a-half for hours worked.
20.6.2 Hours Worked on the Actual Holiday
Employees assigned to work on an actual holiday that is different than the observed holiday shall be paid double time for the
hours worked. 20.7 Flex Schedule
As an alternative to the normal schedule described in the above section, employees may be granted the option to participate in
a Flex Schedule under the following terms and conditions:
The Department Director, with the approval of the Town Manager, has the exclusive authority to approve an employee’s
request for a flex schedule. The decision to implement or terminate a flex schedule is final and is not subject to meet and confer
or any grievance procedure. Participating employees will be provided notification at least one (1) full pay period prior to
termination of a flex schedule.
Employees on a flex schedule will receive no more than eight (8) hours of pay on a City observed holiday and will be required to
use other accrued leaves or to re-arrange their schedule to maintain 80-hours of pay per pay period.
Section 21. Overtime
21.1 Scheduling
All overtime will be scheduled pursuant to the needs of the Town. Overtime shall be scheduled provided the individual is
capable of performing the assignment. In the absence of volunteers, the Town shall assign overtime in rotation based on
reverse seniority. Seniority for the purpose of this section is defined by total continuous service to the Town.
21.1.1
Overtime for work in progress shall be assigned to the employee(s) responsible for the assignment.
21.1.2
Overtime for special events shall be offered on a rotational basis in accordance with seniority.
21.2 Compensation
Overtime shall be compensated at the rate of time and one-half based upon either hours in excess of eight (8) per day or hours
in excess of forty (40) per week. Overtime compensation shall accumulated as Compensatory Time Off or be paid in cash at the
employee's option, subject to the scheduling needs of the Town. If an employee elects to receive compensatory time off in lieu
of overtime pay, for each hour of overtime work they will receive one and one-half hour of compensatory time credit.
21.3 Use of Compensatory Time Off
Use of compensatory time off will be at the Town's discretion based on scheduling needs. The Town shall, to the best of its
ability and subject to scheduling needs of the Town, make every effort to accommodate employee requests for compensatory
time off.
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21.4 Compensatory Time Off Cap
The maximum accrued compensatory time accumulation shall be eighty (80) hours. When an employee has reached the eighty
(80) hour maximum accrual of compensatory time off, all overtime must be paid in cash until the employee’s compensatory
time off bank is reduced below the maximum cap.
Section 22. Call Back
Call back overtime is defined as Town-required return to work after an employee has completed his/her/their normal work shift
and before his/her/their next scheduled normal workday. An employee notified of call back overtime that is not contiguous to
his/her/their shift less than 72 hours in advance will be paid at the call back rate. An employee called back to work shall be
reimbursed for mileage.
22.1
A subsequent call-back shall be considered to be within the initial call-back if the employee is notified within the original three-
hour period. If two hours and forty-five minutes of the original three-hour period expires before the employee is notified, then
a new three-hour minimum shall go into effect. This section also applies to employees on stand-by duty as provided in Sec. 23.
22.2
When additional assistance is needed on a call-back event, supervisor approval is required to call back in more than one
additional employee.
Section 23. Standby
23.1 Assignment and Scheduling
The Union recognizes the Town right to schedule standby assignments for employees at Town discretion. Standby assignments
shall be made in order to provide services outside the regular work schedule. Standby shall be assigned for the months of
November through March, with additional standby periods to be determined on an as-needed basis at the discretion of the
Department Director.
Standby assignments shall be scheduled on a volunteer basis, using a list of all employees and offered by rotation based on
seniority. Each rotation will last for seven (7) days. Seniority for the purpose of this section is defined as total continuous
service to the Town. In the absence of volunteers, the Town shall schedule standby. To the best of its ability, the Town shall
schedule standby assignments as far in advance as possible. The Union recognizes the need for standby provision of services
and further recognizes that employee failure to respond when assigned standby duty may be cause for disciplinary action
including termination.
23.2 Compensation
Standby assignments shall be compensated at the rate of four (4) hours straight time pay for every twenty-four (24) hours of
assignment. Assignments of standby duty for more or less than twenty-four (24) hours shall be compensated on a pro-rated
basis (4 hours for each 24 hours). Specific call out of employees on standby assignments shall be compensated at the regular
overtime rate. Town shall provide a cell phone to employees or those employees electing to receive a stipend may use their
own cellphone while on standby assignment.
23.3
For an employee on standby: Minimum call-back pay shall be three (3) hours at the overtime rate with such three-hour period
defined beginning with the time of the initial call and concluding thirty (30) minutes after the employee calls in to the Police
Department dispatcher that the assignment has been completed.
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23.4
For an employee not on standby: Minimum call-back pay shall be four (4) hours at the overtime rate with such three-hour
period defined beginning with the time of the initial call and concluding thirty (30) minutes after the employee calls in to the
Police Department dispatcher that the assignment has been completed.
23.5 Eligibility
Employees who can respond within a reasonable time period (i.e., 40 minutes on average) shall be eligible for standby duty
regardless of where they reside. The Department Director shall qualify employees for standby duty by ascertaining that travel
to standby assignments can be accomplished safely.
An employee who meets the above requirement, and whose work would not normally involve assignment to standby duty, may
volunteer for such duty and will be assigned to the list of volunteer employees from which standby duty is assigned, at such
time as he/she/they has received the necessary training in standby duties and skills. It is the intent of the parties that
employees be notified by the Department as soon as possible after the execution of this Agreement that new volunteers will be
accepted for training together with information for potential volunteers. If there are volunteers, the Labor-Management
Committee shall be convened to discuss implementation of the appropriate training at the earliest practicable date.
23.6 Stand-By Training
The Town will provide additional training in stand-by duties for newly hired employees. Duration of training shall be evaluated
by the employee’s supervisor during the first year.
Section 24. Emergency Work
If an emergency work situation (as defined by the Supervisor) does not permit an employee to take their meal period and/or
breaks, the missed meal period and/or breaks will be credited as compensatory time at time-and-a-half.
Section 25. Work Furlough Program
25.1 Town Participation
AFSCME recognizes the right of the Town to participate in the Work Furlough Program coordinated by the County of Santa
Clara. The purpose of the program is to provide public service for local government through a sentencing alternative program
for individuals to perform clean-up and maintenance-type duties.
25.2 Responsibilities
25.2.1
A regular Town employee at the level of Maintenance Worker or higher will be responsible to oversee work related to the Work
Furlough Program.
25.2.2
An hourly employee at the level of Maintenance Assistant or higher will be assigned to assist the regular Town employee as
necessary, at the discretion of the Department Director or designee.
25.3 Assignment and Scheduling
25.3.1
AFSCME employees will be provided ten (10) calendar days’ notice prior to a Work Furlough Program assignment except when a
fill-in is necessary due to an emergency or unusual circumstance.
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25.3.2
Work Furlough Program assignments shall be first made on a voluntary basis. In the absence of volunteers, the Town will assign
employees with the least seniority from employees hired on or after July 1, 2007.
25.4 Compensation
Maintenance Workers will receive a 5% out-of-class premium for supervision duties when assigned to the Work Furlough
Program. This premium will be applied to the entire shift and is in addition to any overtime compensation.
25.5 Evaluation
Work performed by Town employees related to the Work Furlough Program is subject to inclusion in the employees’ annual
review.
25.6 Liability
Town employees assigned to the Work Furlough Program are covered for liability purposes by the Town of Los Gatos while performing duties within the scope of his/her/their job.
Section 26. Vacation Schedule
The following vacation schedule shall apply to all employees:
0 to 36 months 10 days per year - 3.08 hours per pay period
37 to 60 months 16 days per year - 4.92 hours per pay period
61 to 120 months 21 days per year - 6.46 hours per pay period
121 to 180 months 23 days per year - 7.08 hours per pay period 181 months and over 25 days per year - 7.70 hours per pay period
Maximum accrual of vacation hours shall be 320 hours.
Section 27. Vacation Cash-Out
27.1
Employees who terminate from Town service shall have all accrued vacation leave and compensatory time cashed out effective
the last full work-day with the Town. This will terminate the employee's status as an employee of the Town.
27.2
On or before the pay period which includes December 15 of each calendar year, an employee may make an irrevocable election
to cash out up to eighty (80) hours of accrued vacation (in whole hour increments) earned in the following calendar year at the
employee’s base rate of pay. On the pay day for the pay period which includes Thanksgiving in the following year, the employee
will receive cash for the amount of vacation the employee irrevocably elected to cash out in the prior year. However, if the
employee’s vacation leave balance is less than the amount the employee elected to cash out (in the prior calendar year) the
employee will receive cash for the amount of leave the employee has accrued that year that is remaining at the time of the cash
out.
27.3
All employees may apply vacation time cash-out to deferred compensation, so long as applicable law permits.
Section 28. Sick Leave
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28.1 Accrual Rate
Accumulation rate shall be eight (8) hours per month (3.70 hours per pay period). Maximum accrual of sick leave hours shall be
1200 hours.
28.2 Sick Leave and Other Accrued Leaves
When an employee is absent for any of the purposes for which sick leave may be used, he/she/they may use other accrued
leaves when sick leave has been exhausted, unless he/she/they has received a second consecutive written notice of counseling
within an eighteen (18) month period regarding excessive or abusive use of sick leave with the exception of protected leave
situations.
28.3 Sick Leave Cash-Out Program For Employees Hired Before July 1, 2018
Employees hired before July 1, 2018 who terminate employment with the Town for any reason other than retirement may cash
out their accumulated sick leave as follows:
Months of Employment
1- 59 months at 25%
60 - 119 months at 37.5%
120 months or more at 50%
If an employee is terminated due to a layoff, the employee shall be eligible to cash out 100% of accrued sick leave at time of
layoff. In order to be eligible for the terminating sick leave cash-out program, an employee must have a sick leave accrual
balance of at least 150 hours at the time of termination. Employees who terminate employment with the Town after a
prolonged period of illness or injury, may apply to the Town Manager for a waiver of the 150 hours requirement.
Employees hired on or after July 1, 2018 may not participate in the sick leave cash out program and are not eligible to cash out
sick leave.
28.4 Sick Leave Conversion at Retirement to Town Trust
All employees hired prior to July 1, 2007 who retire may convert 100% of their accumulated sick leave to a dollar equivalent at
their hourly rate of pay at the time of retirement. Employees hired after July 1, 2007 are not eligible for this Sick Leave
Conversion option under this provision.
This amount shall be held in an account. The employee's portion of medical insurance premium payment will be withheld from
their monthly retirement payment by PERS. The Town agrees to pay the retiree quarterly in advance on the first pay period of
January, April, July, and October of each year after retirement. The first payment will be prorated to the nearest quarter. The
retiree's portion of medical payments will be paid from this account by the Town until all monies are depleted from the account
or the retiree dies, whichever occurs first.
This account will not accrue interest and will not be paid in cash to the retiree or any beneficiaries, except that upon the death
of a retiree whose sick leave account has not been exhausted, the retiree's spousal survivor shall be paid the full cash value of
the remaining sick leave in the retiree's account.
The retiree shall be responsible for 100% of their share of future medical insurance payments once the account is exhausted, exclusive of the PEMCHA minimum.
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Section 29. Holidays
The following shall be observed as paid eight (8) hour holidays:
• January 1st (New Year's Day)
• 3rd Monday in January (Martin Luther King's Birthday)
• the 3rd Monday in February (President's Birthday)
• the last Monday in May (Memorial Day)
• Juneteenth*
• July 4th (Independence Day)
• the first Monday in September (Labor Day)
• Thanksgiving Day
• the Friday following Thanksgiving Day.
• December 25th (Christmas Day)
• four (4) hours each on December 24 and December 31.
• every day declared a holiday by the President or Governor, subject to the Mayor also proclaiming the day as a holiday.
Holidays which fall on Saturday shall be observed on the Friday prior, and holidays which fall on Sunday shall be observed on the
following Monday.
*The Juneteenth holiday will go into effect in calendar year 2023. In recognition of Juneteenth 2022, all employees will receive
a one-time, non-pensionable $500 lump sum payment in the first full pay period in July 2022, or the first full pay period after
Council approval of this MOU, whichever is later.
Section 30. Personal Leave
The employee shall be entitled to twenty-four (24) hours of personal leave per calendar year; such leave shall be non-
cumulative with no cash value. Of the twenty-four (24) hours annually, the employee may take twelve (12) hours without prior
notice and twelve (12) hours with prior notice. If an employee's use of Personal Leave without prior notice results in the Town
having to change another employee's schedule without 72 hours' notice, the situation will be considered an emergency under
Section 20 (Work Schedule) and will not result in penalty to the Town.
Section 31. Maternity Leave/Family Leave/Medical Leave
The Town recognizes State and Federal law regarding Maternity Leave and Family and Medical Leave. The Town will take action
to inform employees of the current provisions of laws affecting these leaves. The Town may, at its discretion, approve leave
beyond the specific amount provided above.
Section 32. Catastrophic Time Bank
If an employee, spouse or significant other, or child becomes catastrophically ill or injured, the employee may request in writing
of the Town Manager that a catastrophic time bank be established. The bank will enable employees to donate accrued CTO or
vacation to the requesting employee in accordance with Departmental policies to be developed.
Section 33. Bereavement Leave
A maximum of 40 hours of bereavement leave shall be provided to each employee for a death in his/her/their immediate family
or the immediate family of their spouse/registered domestic partner. Immediate family for the purpose of this section includes
spouse/registered domestic partner, parent, grandparent, child, or sibling.
Section 34. Military Leave
Military leave and benefits shall be granted in accordance with State and Federal Law, including the continuation of employee
salary and benefits and employees will receive up to thirty (30) calendar days of pay.
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Section 35. Personal Emergency Leave
Leave will be available for employees for disasters declared by Federal, State, County, or Town officials if those disasters affect
all or a portion of the Town "urban service area". Leave is subject to scheduling by the Town. Employees shall be allowed to
charge time off to accumulated Personal Leave, CTO, vacation hours, and sick leave hours (in that order). In the event of a Town
emergency (e.g., flood, earthquake) employees are required to remain at work until released by their Supervisor.
Section 36. Jury Duty
An employee required to serve as a trial juror or an expert witness (expertise related to Town employment) shall have
his/her/their salary and benefits continue; the employee shall turn over to the Town any compensation (other than travel
related) from the courts or other source for jury duty.
Section 37. Leave Without Pay
Leave without pay shall be subject to approval of the Town Manager or designee.
An employee who is on leave without pay shall not earn any employment benefits (including, but not limited to such benefits as
vacation sick leave, medical benefits, dental and other insurance benefits, retirement credits for time employed or seniority
entitlements of any kind) for the duration of such leave. An employee who is on leave without pay will have the ability to
continue all eligible COBRA benefits at their own expense in accordance with the Town's administrative policy on benefit
retention.
Vacation, sick leave, or time worked shall not be used intermittently during an extended leave to interrupt a determination that
an employee is on leave with no pay.
37.1 Voluntary Unpaid Time Off
Employee participation in this plan is contingent on the Town’s agreement and understanding that employee participation
cannot be interpreted as anything other than a temporary and limited good faith effort being made by the employee to do
his/her/their part to help ease the Town’s budget shortfall. This is not to be construed as a representation of employee
commitment to a permanent program or an admission of any kind that the employee would not become harmed by such a plan
becoming mandatory.
Employees may request voluntary unpaid time off under the following circumstances:
A. No impact on accrual of paid leave, seniority, and completion of probation.
B. No impact on benefit eligibility and Town contributions.
C. Employees may cancel participation in the program at any time.
Section 38. Accrual of Benefits
There shall be no accrual of benefits during unauthorized leave, suspension, or leave without pay.
Section 39. Notice of Vacancies
Town job vacancies shall be posted on the Corporation Yard Bulletin Board for the duration of the recruitment period.
Section 40. Promotions
Subject to the needs of the Town, promotional examinations shall be used whenever possible to fill vacancies in the Town
service.
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Employees promoted to higher paying classifications shall receive a minimum five (5%) percent increase in salary or an amount
which shall not exceed the highest step in the range of the higher classification.
Section 41. Probationary Period
The probationary period shall be twelve (12) months for all newly hired employees and six (6) months for employees receiving
promotions. If at the end of a six month probationary period a promoted employee who has been routinely evaluated, trained
and counseled is not meeting required performance standards, then the Town may extend the probationary period in three
month increments, for a total maximum probationary period of 12 months.
An employee who is rejected during a promotional probation period shall have the right to return to his/her/their former
classification, and the same right shall apply to an employee who is displaced as a result of such return, provided, however, that
no such right shall apply - and no additional right shall be conferred hereby - to an employee who is serving his/her/their initial
probationary period with the Town unit.
Section 42. Outside Employment
No full-time paid employee in the classified service shall hold any job other than employment by the Town without the written
recommendation of his/her/their department manager and the written approval of the Town Manager. A copy of such approval
shall be filed with the Personnel Officer. No employee, whether in the classified service or not, shall engage in other
employment or activity which in any way involves a conflict with the interests of the Town or his/her/their responsibilities or
duties as an employee.
Outside employment shall be reviewed and re-approved by the Department Director and Town Manager on a yearly basis.
Section 43. Attendance
Employees shall be in attendance at their work in accordance with the rules regarding hours of work, holidays and leaves.
An employee whose absence is not authorized will not receive pay or benefits for the absent period and shall be subject to
discipline. Failure on the part of an employee absent without leave to return to duty shall be grounds for discharge. It shall be
the responsibility of an employee absent without leave to notify the Department Director of the reason the employee is absent
and of the employee's availability for duty.
Section 44. Personnel Files
Employees shall have the right to review materials in their individual personnel files in accordance with State law.
Section 45. Performance Evaluations
45.1 Evaluations
Performance evaluations shall take place at least every three (3) months for all probationary employees and shall take place at
least annually thereafter on the anniversary of an employee's employment with the Town. Employees eligible for step increases shall receive their performance evaluation no later than fifteen (15) days prior to their employment anniversary date. Employee
evaluation forms shall include a section with a box to be checked indicating whether an employee agrees or disagrees with
his/her/their evaluation. Employees granted step increases shall receive those increases effective the closest pay period in
which they are eligible.
All performance evaluations shall be discussed with the employee prior to the evaluation being completed. Employees shall
sign their individual performance evaluations as evidence of discussion having taken place; employee signature does not
necessarily imply agreement with the evaluation. An employee may attach separate written comments to his/her/their
evaluation.
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Performance evaluations shall be conducted annually from the employee's (1) date of hire, (2) date of last merit increase, or (3)
date the employee entered his/her/their classification. The classification date shall supersede the hire date, and the date of the
last merit increase shall supersede both the hire date and the classification date.
Performance evaluations shall be completed by an employee's immediate supervisor (i.e., PW Maintenance Supervisor or Parks
Maintenance Supervisor). Written comments made by any other supervisor, superintendent or management personnel shall not change the numerical rating of the immediate supervisor.
The Town agrees to provide employees with a copy of both the initial and final versions of their quarterly and annual
performance evaluations.
Sick leave usage shall not be directly evaluated on the performance evaluation. Performance categories that are affected by
excessive or abusive use of sick leave shall be evaluated.
45.2 Counseling
In the event that a worker's performance or conduct appears to be unsatisfactory or needing improvement, informal verbal or
written counseling shall be provided by the workers immediate supervisor. Counseling should be separate from ongoing work
site dialogue and should address performance or conduct which, if not improved, may eventually result in a negative evaluation
or disciplinary action. Documentation of such counseling shall be given to the worker at the time of the counseling and will not
be placed in a worker’s personnel file. When the situation allows counseling, counseling shall be used prior to any unfavorable
reports being issued. Counseling should normally take place between the worker and the immediate supervisor.
45.3 Unfavorable Reports On Performance Or Conduct
If upon such counseling a worker's performance or conduct does not improve and a negative evaluation or disciplinary action
could result, the supervisor shall prepare a written report that includes specific suggestions for corrective action, if appropriate.
A copy shall be given to the worker and a copy filed in his/her/their personnel file. Workers shall have the right to attach a
written rebuttal to the report for inclusion in their personnel file.
Section 46. Seniority
Unpaid leaves of absence and breaks in continuous service shall not be credited to employee seniority.
Seniority will be a factor in determining vacation use.
Section 47. Layoff Policy
47.1 Definitions
As used in this Section, the following words and phrases shall be defined as follows:
47.1.1
Service Seniority shall be defined as the length of time an employee has served as a regular employee of the Town. Service
seniority shall not be earned for standby duty, overtime work, during periods of suspension without pay as a result of
disciplinary action, or for non-medical leave without pay. Service Seniority for unpaid military leave will be considered in the
manner prescribed by State and Federal law.
47.1.2
Classification Seniority shall be defined as the length of time the employee has served as a regular employee in a classification
including anytime spent in a higher classification. A higher classification shall mean a job classification with a higher salary
range.
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47.1.3
A lower class shall mean a job classification with a lower salary range.
47.2 Order of Layoff
When one or more employees in the same class are to be laid off for lack of work, purposes of economy, curtailment of
positions or other reason, the order of layoff shall be as follows:
(1) Temporary employees in the order to be determined by the appointing authority.
(2) Probationary employees in the order to be determined by the appointing authority.
(3) Permanent employees in inverse order of classification seniority.
47.3 Notice of Layoff
Employees subject to the provisions of this Section shall be given a minimum 30 calendar day notice in writing prior to the
effective date of layoff. The Union shall receive concurrent notice, and upon written request within seven calendar days after
the notice is given shall be afforded an opportunity to meet with the appropriate Town representatives to discuss the
circumstances necessitating the layoff and any proposed alternatives to such layoff. Notwithstanding the effort to work
cooperatively, the Town has the exclusive right to determine the methods, means, numbers and kinds of personnel by which by
services are to be provided. The Town’s decision to make a reduction in force or layoff an employee(s) is not subject to the duty
to meet and confer.
47.4 Reassignment in Lieu of Layoff
In the event of layoff, any employee so affected may elect to:
(1) Accept a position in a lower class in which the employee has attained permanent status, provided the employee is
otherwise qualified and has more service seniority than other employee(s) in such lower class.
(2) Accept a vacant position in a lower class for which the employee has the necessary education, experience, and training as
determined by the Director of Human Resources or designee.
(3) Any employee entitled to the options noted above, which involve assignment to a lower classification, may elect to be
placed on layoff in lieu of accepting such assignment to the lower class. In the event the employee elects to be placed on
layoff, such employee will only be recalled to the classification from which the employee elected to be placed on layoff.
Section 48. Layoff Reinstatement
48.1
The names of such persons who are laid off or who elect reassignment in lieu of layoff in accordance with the provisions of
Section 47 of this Memorandum of Understanding shall be placed upon a Reinstatement Eligible List in inverse order of Service
Seniority, i.e., the person with the greatest Service Seniority on the Reinstatement Eligible List for the classes affected shall be
offered reinstatement when a vacancy exists in the affected class. Prior to reinstatement, an employee shall be required to
meet the qualifications of the positions to which he/she/they is reinstated.
48.2
In the event an employee accepts reinstatement to a lower class to which the employee is entitled, such person’s name shall
remain on the Reinstatement Eligible List for reinstatement to higher class, provided such a person, except for lack of seniority,
would have been otherwise entitled to such higher class at the time of the most recent layoff.
48.3
Any person who is reinstated to a class which is the highest class to which they would have been entitled at the time of the
layoff shall have the employee’s name removed from the Reinstatement Eligible List.
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48.4
In the event a laid off employee cannot be contacted by the Town through usual and customary channels within 10 working
days, such person’s name shall be removed from the Reinstatement List, providing, however, that such person within the
twenty-four month period specified herein may request that his/her/their name be returned to the Reinstatement Eligible List
and such person’s name may the at sole discretion of the Personnel Officer, or designee, be returned to the Reinstatement
Eligible List. In this case, the decision of the Personnel Officer or designee shall be final and not subject to any grievance
procedure contained herein.
48.5
In no event shall the names of any person laid off pursuant to the provisions of this Section remain on Reinstatement Eligible
List for a period longer than twenty-four months from the effective date of such person’s most recent layoff.
48.6
Upon reinstatement to any classification to which the employee is entitled pursuant to the provision of this Section, all benefits
acquired by the employee prior to layoff shall also be reinstated. An employee shall not receive credit for time spent on layoff
in computing time for any benefit entitlement.
48.7
A laid-off employee shall lose their reinstatement rights for:(1) failure to return to work within 30 days of notice of
reinstatement; (2) retirement; and (3) termination for cause.
48.8
Laid-off/displaced employees shall be paid accrued leaves and related benefits in accordance with this Memorandum of
Understanding and applicable Town policies and rules. Employees being re-employed who received a sick leave pay off at the
time of layoff/displacement, shall have the uncompensated portion of their sick leave balance restored; provided, however, that
only those sick leave hours accrued after re-employment shall be applied to sick leave payoff or retiree medical related to a
subsequent termination.
Section 49. Contracting Out
No bargaining unit employees shall be laid off as a result of the Town entering into a contract with any outside party.
Section 50. Safety Committee
Union shall encourage its member’s participation in the Town-wide Safety Committee.
Section 51. Safety
The Town shall continue to comply with all applicable State rules and regulations relative to safety. The Town and Union agree
to maintain a joint committee to investigate and make recommendations on safety issues identified by the Union and the Town.
Section 52. Physical Examinations and Tests
The Town agrees to provide full cost reimbursement for physical examinations and job-related tests that may be required of
employees as a condition of continued employment with the Town.
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Section 53. Grievance Procedure
Grievances shall be defined as alleged violations of this agreement or disputes regarding interpretations, application, or
enforcement of this agreement or Town ordinances, resolutions, and written policies related to personnel policies and working
conditions. Grievances shall not include disagreements, disputes, or activities regarding or pertaining to examinations for
employment or promotion, disciplinary action, performance evaluations, probationary terminations and items subject to meet
and confer. Nothing in these definitions shall be construed to limit "permanent" employees from appealing decisions affecting
their employment to the Town Personnel Board.
No act or activity which may be grievable may be considered for resolution unless a grievance is submitted in accordance with
the procedure contained herein within thirty (30) calendar days of the date the grievable activity occurred or the date the
grievant could reasonably have known such activity occurred. This statute of limitations shall not apply to probationary
employees.
The parties agree that all grievances will be processed in accordance with the following procedure:
Step 1
Any employee who has a grievance shall first try to get it settled through discussion with his/her/their immediate supervisor
without undue delay. Every effort shall be made to find an acceptable solution at the lowest possible level of supervision. If
after such discussion the employee does not believe the grievance has been satisfactorily resolved, he/she/they may file a
formal appeal in writing to his/her/their Department Director within ten (10) calendar days after receiving the informal decision
of his/her/their immediate supervisor.
Step 2
The Department Director receiving the formal appeal shall render his/her/their written decision within ten (10) calendar days
after receiving the appeal. If after receipt of the written decision of the Department Director the employee is still dissatisfied,
he/she/they may appeal the decision of the Department Director to the Town Manager. Such appeal shall be made by filing a
written appeal to the Town Manager within five (5) days after receipt of the written decision of the Department Director. The
Town Manager shall review the decision of the Department Director and render a decision within twenty (20) working days
after the appeal is made. The Town Manager’s decision shall be final unless appealed to the Personnel Board by either the
employee or the Department Director.
Step 3
The appealing party may file a written appeal of the decision, findings and conclusions of the Town Manager to the Personnel
Board within ten (10) working days of the Town Manager’s decision. Within sixty (60) calendar days of the filing of the appeal,
the Personnel Board shall review the decision of the Town Manager and the appeal filed. The Personnel Board may ratify,
modify or reverse the Town Manager’s decision. The decision of the Personnel Board shall be final.
The time limitations for filing and responding to grievances may be waived or extended by mutual agreement of the parties. If
either party to the grievance so requests, an informal hearing shall be conducted at the Department Director or Town Manager
appeal levels. Employees may be represented by counsel, Union representative, Union steward or other person at any stage in
the grievance process
Section 54. Disciplinary Procedure
54.1 Suspension
Suspension shall be a temporary separation (without pay) from Town service without pay for disciplinary purposes. The
Department Director, with notice to the Personnel Officer, may suspend an employee without pay for disciplinary purposes.
54.2 Reduction in Pay
Reduction in pay is a decrease in compensation paid to an employee for a fixed period of time for disciplinary purposes.
The Department Director, with notice to the Personnel Officer, may impose a reduction in pay to an employee for disciplinary
purposes.
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54.3 Demotion
The Department Director, with notice to the Personnel Officer, may demote an employee whose performance of his/her/their
required duties is below standard, or for other disciplinary purposes. Demotion may be made to vacant position, if approved by
the Personnel Officer, in lieu of layoff. No employee shall be demoted to a position for which he/she/they does not possess the
minimum qualifications. Written notice of the demotion shall be given by the Department Director to the employee no less than
three (3) days prior to the effective date of the demotion, and a copy filled with the Personnel Officer within the same period.
54.4 Termination
The Department Director, with notice to the Personnel Officer, may terminate an employee whose performance of
his/her/theirrequired duties is below standard, or for other disciplinary purposes. Written notice of the termination shall be
given by the Department Director to the employee no less than ten (10) days prior the effective date of the termination, and a
copy filed with the Personnel Officer within the same period.
54.5 Grounds for Discipline
Employees may be disciplined for, including but not limited to, any of the following grounds for discipline:
1. Fraud in securing employment or making a false statement on an application for employment.
2. Incompetency, i.e. inability to comply with the minimum standard of an employee’s position for a significant period of time.
3. Inefficiency or inexcusable neglect of duty, i.e., failure to perform duties required of an employee within his/her/their
position.
4. Willful disobedience and insubordination, a willful failure to submit to duly appointed and acting supervision or to conform
to duly established orders or directions of persons in a supervisory position.
5. Dishonesty, involving employment.
6. Being under the influence of alcohol or dangerous drugs or narcotics while on duty.
7. Excessive absenteeism.
8. In excusable absence without leave.
9. Abuse of sick leave, i.e., taking sick leave without a doctor’s certificate when one is required, or misuse of sick leave.
10. The conviction of either a misdemeanor or a felony involving moral turpitude shall constitute grounds for dismissal of any
employee. The record of conviction shall be conclusive evidence only of the fact that the conviction occurred. The
Personnel Officer may inquire into the circumstances surrounding the commission of the crime in order to fix the degree of
discipline, or the determination if such conviction is an offense involving moral turpitude. A pleas or verdict of guilty, of a
conviction showing a plea of nolo contendere made to charge a felony or any offense involving moral turpitude, is deemed to be a conviction within the meaning of this Section. The Personnel Officer may suspend or dismiss said employee when
the time for appeal has elapsed or the judgment of the conviction has been affirmed on appeal, or when an order granting
probation is made suspending the imposition of sentence, irrespective of a subsequent order under the provisions of
Section 1203.4 of the Penal Code of the State of California allowing such person to withdraw his plea of guilty and enter a
plea of not guilty, or setting side a verdict of guilty, or dismissing the accusation or indictment.
11. Discourteous treatment of the public or other employees.
12. Improper or unauthorized use of agency property.
13. Refusal to subscribe to any oath or affirmation which is required by law in connection with agency employment.
14. Any willful act of conduct undertaken in bad faith, either during or outside of duty hours which is of such a nature that it
causes discredit to the agency, the employee’s department of division.
15. Inattention to duty, tardiness, indolence, carelessness or negligence in the care and handling of agency property.
16. Violation of the rules and regulations published by the employee’s department.
17. Outside employment not specifically authorized by the appointing authority in accordance with Town procedures.
18. Acceptance from any source of a reward, gift, or other form of remuneration in addition to regular compensation to an
employee for the performance of official duties in accordance with policy on Gifts, “Gratuities Or Rewards”.
19. The refusal of any officer or employee of the agency to testify under oath before any Grand Jury having jurisdiction over
any then pending cause of inquiry in which the investigation of government bribery or misconduct in agency office is
involved shall constitute of itself sufficient ground for the immediate discharge of such officer or employee.
20. Willful violation of any of the provisions of the ordinances, resolutions or any rules, regulations or policies which may be
prescribed by the agency.
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21. Improper political activity. Example: Those campaigning for or espousing the election or non-election of any candidate in
national, state, county or municipal elections while on duty and/or during working hours or in an agency uniform on or off
duty; or the dissemination of political material of any kind while on duty and/or working hours or in uniform.
54.6 Procedures for Taking Disciplinary Action
Disciplinary action shall be taken in compliance with the following procedures:
54.6.1 Notice of Intent
Whenever the Department Director intends to suspend an employee, demote the employee, reduce employee pay, o=r dismiss
the employee, the Department Director shall give the employee a written notice of discipline which sets forth the following:
a. The disciplinary action intended;
b. The specific charges upon which the action is based;
c. A factual summary of the grounds upon which the charges are based;
d. A copy of all written materials, reports, or documents upon which the discipline is based;
e. Notice of the employee’s right to respond to the charges either orally or in writing to the appropriate authority;
f. The date, time and person before whom the employee may respond in no less than (3) working days;
g. Notice that failure to respond at the time specified shall constitute a waiver of right to respond prior to final discipline being
imposed.
54.6.2 Response by Employee
The employee shall have the right to respond to the Department Director orally or in writing. The employee shall have a right to
be represented at any meeting set by the appropriate authority to hear the employee’s response. Such meeting will only be
permitted once and continued for no more than two days. In cases of suspensions for three (3) days or more, demotions,
reductions in pay or dismissal, the employee’s response will be considered before final action is taken.
54.6.3 Final Notice
After the response or the expiration of the employee’s time to respond to the notice of intent, the appropriate authority shall:
(1) dismiss the notice of intent and take no disciplinary action against the employee, (2) modify the intended disciplinary action,
or (3) implement the intended disciplinary action. If discipline is to be issued, the appropriate authority shall prepare and serve
upon the employee a final notice of disciplinary action. The final notice of disciplinary action shall include the following:
a. The disciplinary action taken;
b. The effect of the disciplinary action taken;
c. Specific charges upon which the action is based;
d. A factual summary of the grounds upon which the charges are based;
e. The written materials, reports and documents upon which the disciplinary action is based;
f. The employee’s right to appeal if any.
54.6.4 Termination
The Department Director, with permission from the Personnel Officer, may terminate an employee immediately if it is found
that the employee is guilty of gross misconduct.
54.7 Disciplinary Appeals Hearing Procedure
The appeal procedure described herein shall apply only to cases of disciplinary suspensions, reductions-in pay, demotions and
dismissals affecting regular part-time and fill-time classified service employees.
1. An employee has five (5) working days after receipt of the Final Notice of Discipline, to appeal the decision by filing a
written request for an appeal hearing with the Personnel Officer.
2. If, within the five-day (5) appeal period, the employee involved does not file said appeal, unless good cause for the failure is
shown, the action of the Department Head shall take effect as prescribed.
3. If, within the five-day (5) appeal period, the employee involved requests an appeal hearing by filing a written request with
the Personnel Officer, the Personnel Officer shall submit the appeal to the Town Manager.
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4. A time for an appeal hearing shall be established which shall not be less than twenty (20) working days, from the date of
the filing of the appeal. All interest parties shall be notified in writing of the date, time, and place of the hearing at least ten
(10) working days prior to the hearing.
5. All hearings shall be private; provided, however, that the appellant may request a hearing open to the public. Any request
for an open hearing shall be submitted (5) days prior to the hearing date or the hearing will be closed.
6. Five (5) working days prior to the date set for the hearing each party shall serve upon the other party and submit to the
Town Manager list of all witnesses and all exhibits to the Personnel Officer. 7. The employer’s exhibits shall be designated by number. The employee‘s exhibits shall be designated by alphabetical letter.
Neither party will be permitted to call during the hearing a witness not identified pursuant to this section nor use any
exhibit not provided pursuant to this section unless that party can show that they could no reasonably have anticipated the
prior need for such witness or exhibit.
8. The hearing will not be conducted in accordance with technical rules related to evidence and witnesses but hearings hall be
conducted in a manner most conducive to determination of the truth. Any relevant evidence may be admitted if it is the
type of evidence on which responsible persons are accustomed to rely in the conduct of serious affairs, regardless of the
existence of any common law or statutory rules which might make improper the admission of such evidence over objection
in civil actions. Hearsay evidence may be used for the purpose of supplementing or explain any direct evidence but shall not
be sufficient in itself to support a finding unless it would be admissible over the objection in civil actions. The rules dealing
with privileges shall be effective to the same extent that they are now or hereafter may be recognized in civil actions, and
irrelevant and unduly repetitious evidence may be excluded. Decisions made by the Town Manager shall not be invalidated
by any informality in the proceedings.
9. The Town Manager shall rule on the admission or exclusion of evidence.
10. Each party shall have these rights: To be represented by legal counsel or other person of his or her choice; to call and
examine witnesses; to introduce evidence; to cross-examine opposing witnesses on any matter relevant to the issues; to
impeach any witness regardless of which party first called him or her to testify; and to rebut the evidence against him/her.
If the employee does not testify in his or her own behalf, he/she/they may be called and examined as if under cross-
examination. 11. Oral evidence shall be taken only on oath or affirmation.
12. The hearing shall proceed in the following order, unless the Town Manager for special reason, otherwise directs:
13. The Town shall be permitted to make an opening statement.
14. The employee shall be permitted to make an opening statement.
15. The Town shall present its case in chief and offer evidence in support thereof.
16. The employee may then present his or her defense and offer his or her evidence in support thereof.
17. The parties may then, in order, respectively offer rebutting evidence only, unless the Town Manager for good reason,
permits them to offer evidence upon their original case.
18. Closing arguments shall be permitted at the discretion of the Town Manager. If the Town Manager permits closing
arguments, the party with the burden of proof shall have the right to close the hearing by making the last closing argument.
19. The Town Manager shall determine relevancy, weight, and credibility of testimony and evidence, and shall base its findings
on the preponderance of evidence.
20. During the examination of a witness, all other witnesses, except the parties, shall be excluded from the hearing upon
motion of either party.
21. No still photographs, moving pictures, or television pictures hall be taken in the hearing chamber during a hearing.
22. The Town Manager, prior to or during a hearing, may grant a continuance for any reason he/she/they believes to be
important to his/her/their reaching a fair and proper decision.
23. The Town Manager shall render his/her/their findings and decision as soon after the conclusion of the hearing as possible,
and in no event, later than ten (10) working days after conducting the hearing unless otherwise stipulated by the parties.
The Town Manager’s decision shall set forth the recommendations as to each of the charges and the reasons therefore.
24. The Town Manager may recommend the sustaining or rejecting of any or all of the charges filed against the employee. The
Town Manager may recommend sustaining, rejecting, or modifying the disciplinary action invoked against the employee.
25. The Town Manager’s proposed decision shall be filled with the charged employee and the Personnel Officer, and if the
proposed decision is to reinstate, the decision shall set forth the recommended effective date the employee is to be
reinstated, which may be any time on or after the date the disciplinary action went into effect. The decision of the Town
Manager is final unless appealed to the Personnel Board.
26. Either party may appeal the Town Manager’s decision by filing a written appeal with the Personnel Officer within ten (10)
working days of the Town Manager’s decision.
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27. The party desiring to contest the decision of the Town Manager may request a transcript for review by the Personnel Board
within ten (10) working days of the Town Manager’s decision. If the appealing party requests a transcript, that party shall
pay the cost of the transcript.
28. Within ten (10) working days of the filing of the appeal, the Personnel Board shall review the decision of the Town
Manager, the appeal filed and the record. The Personnel Board shall review the decision of the Town Manager, the appeal
filed and the record. The Personnel Board may ratify, modify or reverse the Town Manager’s decision; the Personnel Board
shall first obtain a transcript of the hearing. The decision of the Personnel Board shall be final.
Section 55. Unpaid Furloughs
AFSCME understands that the Town Manager has the unilateral authority to implement unpaid furloughs. Time will be tracked
on timesheets and monitored to ensure that all employees meet the unpaid furlough requirement.
55.1
Town-wide Closures: The Town Manager will close Town services on designated days for which employees will take unpaid
time. The closure schedule will be published for employees and the public in advance. In the event that the Town requires an
employee to work on a designated furlough day, the employee shall not be furloughed on that day but shall take a different
unpaid furlough day on a date mutually agreeable to the employee and his or her supervisor. Rescheduled furlough days must
be pre-approved by a supervisor in advance and in accordance with standard operating and staffing requirements.
55.1.1
Rolling Furloughs: As an alternative to taking unpaid furlough on a Town-wide Closure day, employees may request to schedule
unpaid furlough on a regularly scheduled workday. The request is subject to supervisory approval and subject to meeting
operational needs. Furlough hours may be scheduled as a minimum of four (4) hours.
55.2
Supervisory Authority: The parties recognize the supervisor’s authority to approve or deny paid or unpaid time off based upon
the operational needs of the department. Time off will be granted in a manner that minimizes operational hardship.
55.3
Incomplete Furloughs: If an employee does not complete their unpaid furloughs by the last pay period of the fiscal year, the
employee’s accrued vacation hours will be forfeited for the balance of the unpaid furlough. The parties understand that
furlough hours have no cash value. 55.4
Effect on Paychecks: To minimize fluctuations in paychecks, the furlough pay reduction will be taken in equal increments over
the fiscal year, regardless of when the actual furlough day is taken.
55.5
No Limitation: The parties understand that paragraphs in this section are intended to provide a structure for unpaid furloughs
and are not a limitation on the Town Manager’s authority to implement unpaid furloughs.
Section 56. Closure Days with Paid Leave Allowed
AFSCME understands that the Town Manager, for budgetary constraints or for operational efficiency, may close all nonessential
services and permit employees to use paid leaves. For example, the Town Manager may institute the closure of nonessential
services between the Christmas and New Years’ holidays. Where not in conflict with the provisions of Section 54 (Unpaid
Furloughs), in regard to these closure days:
56. 1
Employees performing essential services and scheduled to work on the Closure Days will receive straight-time pay for hours worked up to forty per week, and overtime pay for hours worked in excess of forty per week.
Page 415
Town of Los Gatos American Federation of State, County and Municipal Employees July 1, 2022– June 30, 2024
Page 27 10096186.1 LO007-005
56.2
At their election, employees who are not scheduled to work may utilize accrued paid vacation, compensatory time off, or
personal leave to cover the Closure Days. Leave must be requested in the manner provided in the MOU. Employees who use
paid leave will accrue sick leave, vacation and CalPERS credit while on leave.
56.3
While employees have the option to utilize paid vacation, compensatory time off, or personal leave, they are also permitted to
take leave without pay (LWOP) to cover Closure Days. Employees who take LWOP will maintain their health, life and disability
insurance, as well as any medical cash in lieu. Employees who utilize LWOP will not accrue sick leave, vacation or CalPERS credit
while on LWOP.
56.4
If an employee requests to work during the closure days due to hardship (e.g., the employee is out of leave and is financially
unable to take time without pay), the Department Director will first try to assign the employee in their own department. If a
suitable assignment is not available in the employee’s own department, the Town Manager maintains the management right to
place the employee in an alternative assignment for the furlough period.
56.5
The Town Manager maintains the management right to determine essential and nonessential services.
57 Tuition Reimbursement Program
57.1
The Town will reimburse employees up to $3,000 per fiscal year toward the cost of books, university/school fees (except
parking) and tuition.
57.2
The reimbursement shall be only for courses that are directly related to the employee’s position as determined by the Town
Manager, including general education courses that are generally related to attainment of a job-related degree or certification.
General education courses not generally related to the employee’s position will not be eligible for reimbursement.
Reimbursement shall be taxed pursuant to State and Federal regulations.
57.3
Application for tuition reimbursement shall be made to the Town before the course begins. Prior to reimbursement of costs, all
course work must be completed with a passing grade of “C” or equivalent when numerical score or pass/fail is given.
57.4
Any employee who terminates employment with the Town within one (1) year from the completion of a class or classes, for
which tuition reimbursement was paid shall refund all tuition paid under this provision, unless required to attend by the
appointing authority. This section shall not apply in cases involving disability, layoff, or death of the employee, or other
unforeseen circumstances as approved by the Appointing Authority on a case-by-case basis.
Section 58. Comprehensiveness of Agreement
Town and Union agree that this agreement represents all salary, wages, and fringe benefits subject to negotiation and available
to employees.
Page 416
Town of Los Gatos American Federation of State, County and Municipal Employees July 1, 2022– June 30, 2024
Page 28 10096186.1 LO007-005
This page left intentionally blank
Page 417
Town of Los Gatos American Federation of State, County and Municipal Employees July 1, 2022– June 30, 2024
10096186.1 LO007-005
AFSCME MOU Exhibit A
For Fiscal year 2022/2023 – 7.5% Increase Effective First Full Pay Period in July
Page 418
Town of Los Gatos AFSCME Classifications
Salary Schedule for Fiscal Year 2022/23
Effective July 10, 2022
Adopted by Town Council June 7, 2022
Class
Code Classification Title Rate
Type
Range
AF1 Step 1 Step 2 Step 3 Step 4 Step 5 Step 6
6619 Assistant Equipment Mechanic Hourly 09 $33.37 $35.04 $36.79 $38.63 $40.56 $42.59
6620 Equipment Mechanic Hourly 03 $38.38 $40.30 $42.32 $44.44 $46.66 $48.99
6618 Supervising Equipment Mechanic Hourly 08 $44.14 $46.35 $48.67 $51.10 $53.66 $56.34
6670 Facility Technician Hourly 02 $35.71 $37.50 $39.38 $41.35 $43.42 $45.59
6600 Lead Parks & Maintenance Worker Hourly 07 $40.75 $42.79 $44.93 $47.18 $49.54 $52.02
6650 Parks & Maintenance Worker Hourly 05 $32.79 $34.43 $36.15 $37.96 $39.86 $41.85
6660 Parks & Maintenance Worker Trainee Hourly 04 $26.78 $28.12 $29.53 $31.01 $32.56 $34.19
6605 Senior Parks & Maintenance Worker Hourly 06 $35.68 $37.46 $39.33 $41.30 $43.37 $45.54
6610 Town Arborist Hourly 03 $38.92 $40.87 $42.91 $45.06 $47.31 $49.68
Reflects General Increase of 7.5%.
AFSCME 8%Page 1 of 1 Approved 6/7/2022
ATTACHMENT 1
Page 419
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 422
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 $108,500 for FY 2022/23. The
total cost impact will be absorbed in the Town’s existing operating budget.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
Attachments:
1. Salary Schedule for Management Effective July 10, 2022
2. Salary Schedule for Confidential Classifications Effective July 10, 2022
3. Salary Schedule for Temporary/Hourly Classifications Effective July 10, 2022
Page 423
Town of Los Gatos Town Council and Management Classifications
Salary Schedule for Fiscal Year 2022/23
Effective July 10, 2022
Adopted by Town Council June 7, 2022
Class
Code Classification Title Annual Salary
Minimum
Annual
Salary
Maximum
2615 Assistant Parks & Public Works Director/Town Engineer 146,041$ 197,155$
2110 Assistant Town Manager 173,596$ 234,355$
2420 Chief Building Official 132,307$ 178,614$
2400 Community Development Director 169,358$ 228,633$
2180 Community Outreach Coordinator 91,353$ 123,326$
2130 Economic Vitality Manager 125,930$ 170,005$
2310 Finance and Budget Manager 132,307$ 178,614$
2300 Finance Director 165,232$ 223,063$
2200 Human Resources Director 153,434$ 207,136$
2900 Information Technology Manager 132,307$ 178,614$
2800 Library Director 153,434$ 207,136$
2820 Library Division Manager 100,836$ 136,129$
2600 Parks & Public Works Director 169,358$ 228,633$
2645 Parks & Public Works Operations Manager 114,087$ 154,017$
2630 Parks & Public Works Superintendent 132,307$ 178,614$
2412 Planning Manager 132,307$ 178,614$
2510 Police Captain 157,270$ 212,314$
2500 Police Chief 177,936$ 240,213$
2545 Police Records & Communication Manager 122,858$ 165,859$
2140 Senior Administrative Analyst 98,376$ 132,808$
2650 Senior Civil Engineer 125,930$ 170,005$
2000
Town Attorney - Council Appointed (Effective 9/19/21, Adopted
by Town Council 11/16/21)249,900$
2190 Town Clerk 132,307$ 178,614$
2100
Town Manager - Council Appointed (Effective 8/22/21, Adopted
by Town Council 11/16/21)267,750$
2655 Transportation & Mobility Manager 122,858$ 165,859$
2905 Urban Forest Manager 114,087$ 154,017$
1000
Town Council (Effective 1/1/19 Pursuant to Ordinance Adopted
by Town Council on 2/6/18)
Management salaries reflect a spread of 35% to the top of the range.
Reflects a General Increase of 3%
$570 Stipend per month,
for a total compensation of
$6,840 per year
Management 3%Page 1 of 1 Approved 6/7/2022
ATTACHMENT 1
Page 424
Town of Los Gatos Confidential Classifications
Salary Schedule for Fiscal Year 2022/23
Effective July 10, 2022
Adopted by Town Council June 7, 2022
Class
Code Classification Title Rate Type Range CF1 STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6
3300 Accountant/Finance Analyst Hourly 07 $47.14 $49.50 $51.98 $54.58 $57.31 $60.76
3000 Administrative Analyst Hourly 07 $47.14 $49.50 $51.98 $54.58 $57.31 $60.76
3518 Administrative Assistant Hourly 09 $32.41 $34.03 $35.73 $37.52 $39.40 $41.95
3115 Administrative Technician Hourly 04 $40.65 $42.68 $44.81 $47.05 $49.40 $52.45
3190 Deputy Clerk Hourly 08 $38.69 $40.62 $42.65 $44.78 $47.02 $49.95
3500 Executive Assistant to Chief of Police Hourly 03 $38.69 $40.62 $42.65 $44.78 $47.02 $49.95
3100 Executive Assistant to Town Manager Hourly 05 $40.65 $42.68 $44.81 $47.05 $49.40 $52.45
3015 Human Resources Technician Hourly 02 $36.83 $38.67 $40.60 $42.63 $44.76 $47.58
3200 Legal Administrative Assistant Hourly 02 $36.83 $38.67 $40.60 $42.63 $44.76 $47.58
3180 Office Assistant Hourly 01 $29.65 $31.13 $32.69 $34.32 $36.04 $38.42
3301 Payroll Technician Hourly 06 $40.65 $42.68 $44.81 $47.05 $49.40 $52.45
Reflects General Increase of 8% and includes 5% Confidential Premium
Confidential 8%Page 1 of 1 Approved 6/7/2022
ATTACHMENT 2
Page 425
Town of Los Gatos Temporary Classifications
Salary Schedule for Fiscal Year 2022/23
Effective July 10, 2022
Adopted by Town Council June 7, 2022
Class
Code Classification Title Rate Type Range STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6
9305 Account Clerk Temp/Hourly Hourly TE2-04 $26.75 $28.09 $29.49 $30.96 $32.51 $34.14
9310 Account Technician Temp/Hourly Hourly TE2-10 $32.14 $33.75 $35.44 $37.21 $39.07 $41.02
9300 Accountant Temp/Hourly Hourly TE2-17 $38.82 $40.76 $42.80 $44.94 $47.19 $49.55
9010 Admin Analyst Temp/Hourly Hourly TE2-17 $38.82 $40.76 $42.80 $44.94 $47.19 $49.55
9100 Admin Specialist Temp/Hourly Hourly TE2-10 $32.14 $33.75 $35.44 $37.21 $39.07 $41.02
9580 Administrative Assistant Temp/Hourly Hourly TE2-05 $29.22 $30.68 $32.21 $33.82 $35.51 $37.29
9105 Administrative Secretary Temp/Hourly Hourly TE2-09 $30.70 $32.24 $33.85 $35.54 $37.32 $39.19
9656 Assistant Engineer Temp/Hourly Hourly TE2-23 $43.99 $46.19 $48.50 $50.93 $53.48 $56.15
9655 Associate Civil Engineer Temp/Hourly Hourly TE2-24 $50.65 $53.18 $55.84 $58.63 $61.56 $64.64
9400 Associate Planner Temp/Hourly Hourly TE2-22 $43.82 $46.01 $48.31 $50.73 $53.27 $55.93
9410 Building Inspector Temp/Hrly Hourly TE2-23 $43.99 $46.19 $48.50 $50.93 $53.48 $56.15
9112 Clerical Aide Temp/Hourly Hourly TE2-01 $16.20 $17.01 $17.86 $18.75 $19.69 $20.67
9430 Code Compliance Officer Temp/Hourly Hourly TE2-16 $37.82 $39.71 $41.70 $43.79 $45.98 $48.28
9530 Communication Dispatcher Temp/Hourly Hourly TE2-19
9545 Crime Analyst Temp/Hourly Hourly TE2-18 $39.29 $41.25 $43.31 $45.48 $47.75 $50.14
9540 CSO Intern Temp/Hourly Hourly TE2-03 $24.02 $25.22 $26.48 $27.80 $29.19 $30.65
9532 CSO Temp/Hrly Hourly TE2-12 $34.43 $36.15 $37.96 $39.86 $41.85 $43.94
9190 Deputy Clerk Temp/Hourly Hourly TE2-04 $26.75 $28.09 $29.49 $30.96 $32.51 $34.14
9660 Engineering Technician Temp/Hourly Hourly TE2-13 $35.31 $37.08 $38.93 $40.88 $42.92 $45.07
9621 Equipment Mechanic Temp Hourly AF2-01 $35.68 $37.46 $39.33 $41.30 $43.37 $45.54
9720 Facility Attendant Temp/Hourly Hourly TE2-01 $16.20 $17.01 $17.86 $18.75 $19.69 $20.67
9109 Human Resources Specialist Temp/Hourly Hourly TE2-09 $30.70 $32.24 $33.85 $35.54 $37.32 $39.19
9041 Intern I Temp/Hourly Hourly TE2-02 $18.80 $19.74 $20.73 $21.77 $22.86 $24.00
9040 Intern II Temp/Hourly Hourly TE2-03 $24.02 $25.22 $26.48 $27.80 $29.19 $30.65
9200 IT Technician Temp/Hrly Hourly TE2-14 $35.37 $37.14 $39.00 $40.95 $43.00 $45.15
9605 Lead Parks & Maint Worker Hourly AF2-06 $37.37 $39.24 $41.20 $43.26 $45.42 $47.69
9015 Legal Assistant Temp/Hrly Hourly TE2-17 $38.82 $40.76 $42.80 $44.94 $47.19 $49.55
9810 Librarian Temp/Hourly Hourly TE2-15 $37.44 $39.31 $41.28 $43.34 $45.51 $47.79
9820 Library Assistant Temp/Hourly Hourly TE2-06 $28.54 $29.97 $31.47 $33.04 $34.69 $36.42
Temp 8%Page 1 of 2 Approved 6/7/2022
ATTACHMENT 3
Page 426
Town of Los Gatos Temporary Classifications
Salary Schedule for Fiscal Year 2022/23
Effective July 10, 2022
Adopted by Town Council June 7, 2022
Class
Code Classification Title Rate Type Range STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6
9840 Library Clerk Temp/Hourly Hourly TE2-04 $26.75 $28.09 $29.49 $30.96 $32.51 $34.14
9850 Library Page Temp/Hourly Hourly TE2-01 $16.20 $17.01 $17.86 $18.75 $19.69 $20.67
9830 Library Teen Services Specialist Hourly TE2-03 $24.02 $25.22 $26.48 $27.80 $29.19 $30.65
9600 Maintenance Assistant Hourly AF2-02 $17.96 $18.86 $19.80 $20.79 $21.83 $22.92
9900 Network Administrator Hourly TE2-21 $41.89 $43.98 $46.18 $48.49 $50.91 $53.46
9180 Office Assistant Temp/Hourly Hourly TE2-04 $26.75 $28.09 $29.49 $30.96 $32.51 $34.14
9645 Park Service Officer Aide Temp/Hourly Hourly TE2-03 $24.02 $25.22 $26.48 $27.80 $29.19 $30.65
9640 Park Service Officer Temp/Hourly Hourly TE2-12 $34.43 $36.15 $37.96 $39.86 $41.85 $43.94
9560 Parking Control Officer Temp/Hourly Hourly TE2-04 $26.75 $28.09 $29.49 $30.96 $32.51 $34.14
9620 Parks & Main Worker Temp Hourly AF2-04 $30.06 $31.56 $33.14 $34.80 $36.54 $38.37
9630 Parks & Main Worker Trainee Temp Hourly AF2-03 $24.57 $25.80 $27.09 $28.44 $29.86 $31.35
9440 Permit Technician Hourly TE2-11 $33.12 $34.78 $36.52 $38.35 $40.27 $42.28
9590 Police Officer Reserve (Top Step of Officer)Hourly TE2-25
9520 Police Officer Temp/Hourly Hourly TE2-25
9550 Police Records Specialist Temp/Hourly Hourly TE2-08 $29.94 $31.44 $33.01 $34.66 $36.39 $38.21
9000 Project Manager Hourly Mgmt $115.56
9650 Public Works Inspector Temp/Hourly Hourly TE2-20 $41.57 $43.65 $45.83 $48.12 $50.53 $53.06
9670 Senior Electrician Temp/Hourly Hourly TE2-23 $43.99 $46.19 $48.50 $50.93 $53.48 $56.15
9831 Senior Library Page Hourly TE2-02 $18.80 $19.74 $20.73 $21.77 $22.86 $24.00
9725 Special Event Attendant Hourly TE2-07 $17.96 $18.86 $19.80 $20.79 $21.83 $22.92
9610 Ticket Booth Attendant Hourly AF2-05 $16.20 $17.01 $17.86 $18.75 $19.69 $20.67
Reflects General Increase of 8%
Temp 8%Page 2 of 2 Approved 6/7/2022Page 427
ATTACHMENT 3
PREPARED BY: Arn Andrews
Assistant Town Manager
Reviewed by: Town Manager and Finance Director
110 E. Main Street Los Gatos, CA 95030 ● (408)354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
FINANCE COMMISSION REPORT
MEETING DATE: 06/13/2022
ITEM NO:
DATE: June 8, 2022
TO: Finance Commission
FROM: Laurel Prevetti, Town Manager
SUBJECT: Receive Update on Negotiated Labor Agreements
DISCUSSION:
On June 7, 2022, the Town Council approved Labor Agreements between the Town of Los Gatos
and the Police Officers Association (POA), Town Employees’ Association (TEA), and the
American Federation of State, County, and Municipal Employees (AFSCME). In addition, the
Town Council approved economic parameters for the Town’s unrepresented employees in
Management, Confidential, and Temporary classifications.
The following tables summarize the agreed upon terms and cumulative costing associated with
the agreements:
Represented Groups
Economics
AFSCME
TEA
POA
Term 2 Years 2 Years 3 Years
1st Year 3.0% COLA & $1,000 3% COLA 3% COLA
2nd Year 3.0% COLA 3% COLA 3% COLA
Market Adjustments 4.5% 5.0% 3.15%
Pandemic Pay $2,500 $2,500 $2,500
Juneteenth Yes Yes: 0.35% Yes; 0.4% & $1,000
Education Reimbursement Additional $1,500 n/a n/a
PAGE 2 OF 2
SUBJECT: Labor Agreements
DATE: June 8, 2022
2021/22 Cleanup n/a n/a 1.1% and $5,000
Contract Ratification n/a $1,000 n/a
Unrepresented Groups
Economics
Confidential
Management
Temporary
1st Year 3.0% COLA 3% COLA 3% COLA
2nd Year 3.0% COLA 3% COLA 3% COLA
Market Adjustments 5.0% 5.0%
Pandemic Pay $2,500 $2,500
Juneteenth Yes Yes Yes
Agreement Costing
Economics
COLA
Market
Adjustments
One-time
POA $337,000 $265,000 $289,000
AFSCME $46,000 $133,000 $38,500
TEA $215,000 $290,000 $210,000
Confidential $65,000 $108,840 $38,500
Management $216,000 $70,000
Temporary $22,000 $37,000
Totals $901,000 $886,005 $646,000
Budget Balancing Strategies Pros Cons
Use of either the Budget Stabilization or
Catastrophic Reserves
• Sufficient funding available in
each reserve
• Funds are required to be
replenished
Cancelation of the annual OPEB actuarial
contribution funding
• Legally viable
• $600k in FY 20/21 and $500k in FY
21/22
• Counter to past funding
objectives
• Potential rating agency
implications
Utilization of the OPEB IRS 115 Trust for annual
Pay Go healthcare expenses
• Legally viable
• $1.3M in FY 20/21 and $1.3M in
FY 21/22
• Counter to past funding
objectives
Cancel programmed GF GFAR contribution for FY
21/22
• $600k • Counter to the Commissions CIP
funding objective
ARPA • $1.4M FY 20/21 and $650k FY
21/22
• Depletes resources available for
other ARPA eligible purposes
ATTACHMENT 4
This Page Intentionally Left Blank
ATTACHMENT 5
PREPARED BY: Stephen Conway
Finance Director
Reviewed by: Town Manager and Assistant Town Manager
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
FINANCE COMMISSION
REPORT REPORT
MEETING DATE: 06/13/2022
DATE: June 8, 2022
TO: Finance Commission
FROM: Laurel Prevetti, Town Manager
SUBJECT: Receive Update on American Rescue Plan Act Administration
RECOMMENDATION:
Receive update on American Rescue Plan Act (ARPA) administration.
BACKGROUND:
In accordance with ARPA, the Town was awarded an ARPA grant in the amount of $7,229,744
paid to the Town in two separate payments, the first payment of $3,618,872 was received in
early July 2021 and the second payment of $3,614,872 is expected to be received in early July
2022.
Based on initial guidance of eligible uses of ARPA funds the Town allocated these funds to
various purposes to respond and support the impacts of the pandemic on Town residents, non-
profits, the business community including the construction of downtown parklets, non-profit
fee and rent waivers, enhanced senior services, promenades, and increased funding for Town
infrastructure capital improvements, among other initiatives.
Since receipt of ARPA funds staff has been following the evolution of the federal guidelines for
the use of ARPA funding as well as regularly participating in ARPA focused webinars presented
by the US Department of the Treasury (Treasury) staff and the ARPA sub-group sponsored by
the Government Finance Officers Association. During the initial ARPA implementation period
Treasury received a tremendous number of inquiries from ARPA grant recipients on how best to
comply with the complex and evolving federal regulations and guidance for calculating
pandemic related revenue loss and complying with federal uniform guidance on eligible uses of
ARPA funds. Treasury responded to this demand by revising its initial requirements in their
PAGE 2 OF 3
SIBJECT: Receive Update on American Rescue Plan Act (ARPA) Administration
DATE: June 8, 2022
BACKGROUND (continued):
Final Interim Rule to allow certain non-entitlement units (NEUs) like the Town of Los Gatos a
simplified procedure for claiming and reporting revenue loss. To be eligible for the simplified
claiming procedures, the NEU must receive a total ARPA award of less than $10 million.
DISCUSSION:
Upon Treasury’s release of the simplified reporting process for entities awarded less than $10
million in ARPA funding and additional guidance received through staff review of federal
compliance issues, staff recommends that the Town recognize the $3.4 M of FY 2021/22 and
the anticipated $3.6M FY 2022/23 cash collections of ARPA revenues as qualified revenue loss
under the Treasury provisions for use in providing government services. To further aid in
compliance with federal uniform guidance and Single Audit requirements, staff is intending to
claim the lost revenue for use in providing essential government services and intends to
account for the use of ARPA revenue loss revenues for eligible public safety payroll costs for
both FY 2021/22 and FY 2022/23.
The recommended action as illustrated in the below worksheet will allocate all ARPA
“replacement” revenues to the General Fund which in turn will unencumber other General
Fund operating revenues which were previously dedicated for public safety costs. The newly
unencumbered General Fund revenues can then be allocated to the ARPA pandemic responses
as identified, approved and allocated by Town Council since receipt of the $7.2 million ARPA
award.
PAGE 3 OF 3
SIBJECT: Receive Update on American Rescue Plan Act (ARPA) Administration
DATE: June 8, 2022
CONCLUSION:
The worksheet illustrates budget adjustments related to the necessary ARPA and General Fund
revenue and expense adjustments and recaps the total ARPA grant award of $7,229,744 and
the Council directed uses approved or proposed through June 7, 2022. In addition, the
worksheet provides the detail staff will use to adjust the ARPA and General Fund budgets to
recognize the ARPA grant award for revenue loss to be used to reimburse public safety
response. It will also be used to recognize and budget FY 2021/22 matching General Fund ARPA
replacement revenues and expenditure budgets for use in supporting the ARPA objectives as
approved/proposed and directed by Town Council since original receipt of the ARPA grant
award.