05 Staff Report - Memorandum for Police Officers AssociationgIH0R
cos cao~ COUNCIL AGENDA REPORT
DATE: June 11, 2009
MEETING DATE. 06/15/09
ITEM NO. ~57
TO: MAYOR AND TOWN COUNCIL
FROM: GREG LARSON, TOWN MANAGER
SUBJECT: ADOPT RESOLUTION APPROVING AN AMENDMENT TO THE
MEMORANDUM OF UNDERSTANDING BETWEEN THE TOWN OF LOS
GATOS AND THE LOS GATOS POLICE OFFICERS' ASSOCIATION FOR THE
PERIOD JULY 1, 2009 THROUGH JUNE 30, 2012 AND AUTHORIZING THE
TOWN MANAGER TO EXECUTE THE AMENDMENT
RECOMMENDATION:
Adopt resolution approving an amendment to the Memorandum of Understanding between the Town of Los
Gatos and the Los Gatos Police Officers' Association for the period July 1, 2009 through June 30, 2012 and
authorizing the Town Manager to execute the amendment.
BACKGROUND:
In accordance with the Town's Employer-Employee Relations Resolution No. 1974-41, representatives of
the Town and the Los Gatos Police Officers' Association have met and conferred in good faith and within
the scope of representation. The parties have reached agreement to amend the existing Memorandum of
Understanding and the employees represented by POA have ratified the proposed amendment.
DISCUSSION:
As the Town faces worsening economic conditions and declining revenues, the Town's five-year forecast
continues to be negatively impacted. To address the economic downturn, the Town is taking fiscally
prudent budget actions including reducing expenses across all departments, eliminating certain vacant
positions, reducing overtime, reducing temporary staffing and invoking a management pay freeze. To
further address the budget gap, the Town requested that POA assist the Town's efforts by reducing payroll
costs. In response to this request, the POA agreed to restructure their existing union agreement with the
Town by spreading their previously negotiated increase of 8% over two years to 8% over three years. The
restructuring of their agreement provides immediate savings for the new fiscal year and reduces base payroll
for the future.
PREPARED BY:
Reviewed by: -P~,~Assistant Town Manager -lam- Town Attorney Clerk Administer
Finance Community Development Revised: 06/11/2009 10:33 AM
Reformatted: 5/30102
CAUsers\RPorti11o1Desktop\P0A Council Report for June 15, 2009. doe
PAGE 2
MAYOR AND TOWN COUNCIL
SUBJECT: ADOPT RESOLUTION APPROVING AN AMENDMENT TO THE
MEMORANDUM OF UNDERSTANDING BETWEEN THE TOWN OF LOS
GATOS AND THE LOS GATOS POLICE OFFICERS' ASSOCIATION FOR THE
PERIOD JULY 1, 2009 THROUGH JUNE 30, 2012 AND AUTHORIZING THE
TOWN MANAGER TO EXECUTE THE AMENDMENT
June 11, 2009
This agreement to restructure the agreement will extend the current Memorandum of Understanding by one
year and will spread the existing 8% increase as follows:
Current MOU
(8% over next two ears)
New 1 Amended Agreement
8% over next three ears)
4% Jul 1, 2009
2% Jul 1, 2009
4% July 1, 2010
2% July 1, 2010
Expires June 30, 2011
4% Jul 1, 2011
Expires June 30, 2012
By restructuring the contract in this manner, the Town will save approximately $415K over three years for
an average of $138,500 in savings each year. In recognition of the savings gained by the Town, the Town
agrees that POA will not be subject to unpaid furloughs in FY 2009110.
CONCLUSION:
The POA and Town negotiators worked diligently to develop this proposed amendment to save payroll costs
to the Town. The POA membership has also showed its support by ratifying the amendment in a
membership vote. Thus, the attached resolution approving the amendment to the Memorandum of
Understanding for POA-represented positions is recommended for adoption.
FISCAL IMPACT:
This agreement will result in a savings of $116K in FY 2009/10, $239K in FY 2010/11. For FY 2011112,
the agreement results in a $60K reduction in forecasted salaries.
The savings for FY 2009110 have been assumed in the adopted budget. Funding to support POA salaries in
the additional years of the agreement will be included in the proposed annual budgets for FY 2010111 and
FY 2011-12.
Attachments:
1. Resolution approving the amendment to the Memorandum of Understanding between the Town
of Los Gatos and the Los Gatos Police Officers' Association for the period July 1, 2009 through
June 30, 2012 and authorizing the Town Manager to execute the Memorandum of
Understanding
2. Proposed Sideletter Agreement
RESOLUTION NO. 2009-
ADOPT RESOLUTION APPROVING AN AMENDMENT TO THE MEMORANDUM OF
UNDERSTANDING BETWEEN THE TOWN OF LOS GATOS AND THE LOS GATOS POLICE
OFFICERS' ASSOCIATION FOR THE PERIOD JULY 1, 2009 THROUGH JUNE 30, 2012 AND
AUTHORIZING THE TOWN MANAGER TO EXECUTE THE AMENDMENT
WHEREAS, representatives of the Town and the Los Gatos Police Officers'
Association, in accordance with the Town's Employer-Employee Relations Resolution No.
1974-41, have met and conferred in good faith within the scope of representation, and
WHEREAS, the representatives of the Los Gatos Police Officers' Association
bargaining team have indicated that the union membership ratified the proposed Amendment to
the Memorandum of Understanding, as represented by the Budget Sideletter Agreement dated
May 21, 2009, attached hereto as Exhibit A and incorporated herein.
RESOLVED, by the Town Council of the Town of Los Gatos, County of Santa
Clara, State of California, that the Town Council approves the amendment to the Memorandum
of Understanding between the Town of Los Gatos and the Los Gatos Police Officers'
Association for the period July 1, 2009 through June 30, 2012 and that the Town Manager is
hereby authorized to sign the attached agreement on behalf of the Town.
PASSED AND ADOPTED at a regular meeting of the Town Council of the
Town of Los Gatos, California, held on the 1 Srd day of June, 2009 by the following vote:
COUNCIL MEMBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN:
SIGNED: /s/ Mike Wasserman
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
ATTEST:
Is/ Jackie Rose
CLERK ADMINISTRATOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
Town of Los Gatos
and
Los Gatos Police Officers Association
Budget Sideletter Agreement
May 2 1, 2009
This Side Letter of Agreement is executed by and between the Town of Los Gatos ("Town") and
the Los Gatos Police Officers' Association ("LGPOA"). This Sideletter is intended to amend the
provisions of the 2008-2011 Memorandum of Understanding ("MOU") between the parties.
1. Term (Section 2)
The term of this Memorandum of Understanding shall be wee (3 ) four and one-
half 4( 112) years, commencing on January 1, 2008 and terminating on June 30,
20442012.
2. Salary (Section 7)
Replace current language with the following
FY 2010: Effective July 1. 2009. all salarv steps will be increased by two
percent 2% for fiscal year 2010.
FY 2011: Effective Jul 1 2010, all salary steps will be increased b two
percent (2%) for fiscal year 2011.
FY 2012: Effective July 1, 2011, all salary steps will be increased by four
percent (4%) for fiscal year 2012.
3. Furloughs
In consideration of the promises made herein, the Town agrees that it will
not exercise its right to im ose unpaid furlough days for bar ainin unit
employees in fiscal year 2009-2010. The Town reserves the right to impose
unpaid furloughs in future fiscal years, subject to a thirty (30) day notice
period. The parties agree to negotiate over the impact of furloughs on 24/7
operations. -
This agreement will not affect the Town's right to implement paid furlough
or closure days i.e. furlough days where employees may use vacation or
compensatory time off for furlough days such as during the period between
Christmas and New Year) per the existing "Regarding Furlough Days" side
letter.
Town of Los Gatos and LGPOA
Budget Sideletter
May 21, 2009