Approve POA MOU�wNOo
DATE:
TO:
FROM:
SUBJECT:
COUNCIL AGENDA REPORT
OCTOBER 1, 2014
MAYOR AND TOWN COUNCIL
GREG LARSON, TOWN MANAGER
MEETING DATE: 10/7/14
ITEM NO: aZ
FF
ge
APPROVE THE MEMORANDUM OF UNDERSTANDING BETWEEN THE
TOWN OF LOS GATOS AND LOS GATOS POLICE OFFICERS' ASSOCIATION
FOR THE PERIOD OCTOBER 1, 2014 THROUGH SEPTEMBER 30, 2016 AND
AUTHORIZING THE TOWN MANAGER TO EXECUTE THE MEMORANDUM
OF UNDERSTANDING
RECOMMENDATION:
Approve the Memorandum of Understanding between the Town of Los Gatos and the Los Gatos
Police Officers' Association (POA) for the period October 1, 2014 through September 30, 2016 and
authorizing the Town Manager to execute the Memorandum of Understanding (MOU).
BACKGROUND:
In accordance with the Town's Employer - Employee Relations Resolution No. 1974 -41,
representatives of the Town and Town of Los Gatos Police Officers' Association have met and
conferred in good faith and within the scope of representation for matters relating to employment,
including wages, benefits and other terms and conditions of employment. The parties have reached
agreement on a package proposal and the employees represented by the POA have ratified the
proposed agreement.
DISCUSSION:
The negotiated package proposal as ratified by the POA membership covers a two year period, from
October 1, 2014 through September 30, 2016. A summary of the ratified agreement is provided as
Attachment 1 of this staff report.
PREPARED BY:
RUMI PORTILIDire
Human Resourcr
Rev iewed by:
Town
Attorney
N:\PSL \Cu t \Staff\Rumi \Cu t\Negotiations\POA Contmet 2014- 2016 \Council Memo POA Agreemem Oct 7
PAGE 2
MAYOR AND TOWN COUNCIL
SUBJECT: APPROVE THE MEMORANDUM OF UNDERSTANDING BETWEEN THE TOWN
OF LOS GATOS AND LOS GATOS POLICE OFFICERS' ASSOCIATION FOR THE
PERIOD OCTOBER 1, 2014 THROUGH SEPTEMBER 30, 2016 AND
AUTHORIZING THE TOWN MANAGER TO EXECUTE THE MEMORANDUM OF
UNDERSTANDING
OCTOBER 1, 2014
The package includes a 1.5% cash bonus in lieu of a base increase in the first year of the agreement for
all ranks of the POA unit, which includes Police Officer, Police Corporal and Police Sergeant. In the
second year of the agreement, Police Officers and Police Corporals will receive a 2% increase to their
base salary and Police Sergeants will receive a 2% increase as a cash bonus in lieu of a base increase.
The base hourly rates during the term of the package proposal are included as Attachment 2 to this
staff report..
The agreement adds four hours of Personal Leave annually for all members of POA, which changes
the benefit from 20 hours of Personal Leave per year to 24 hours per year. The package also includes
an additional opportunity for POA members to cash out their earned vacation leave hours (from lx per
year to 2x per year), at no net cost to the Town.
Savings to the Town in the proposed agreement include a reduction of future retiree health care costs
by re- aligning Town premiums upon Medicare eligibility and savings through the cost- sharing of
medical premiums for dependent coverage. The package proposal also addresses salary compaction
and reduces salary costs by appointing new Sergeants to a 4 -step salary range rather than the current
5 -step range and eliminating specialty pay for Detective and Administrative supervisors.
CONCLUSION:
The negotiated package proposal as ratified by the POA membership covers a two -year term through
September 30, 2016 and includes salary incentives and personal leave hours, while also providing
ongoing savings to the Town and corrective actions to address salary compaction.
ENVIRONMENTAL ASSESSMENT:
The agreement is not a project defined under CEQA, and no farther action is required.
FISCAL IMPACT:
The cost to the Town of the cash/salary and personal leave incentives included in the package for the
two year term are as follows:
• Cash/Salary Incentives: $217,000 total for two years, including Ca1PERS contributions at 29.56%
• Personal Leave 4 hours: $13,000 annually
PAGE 3
MAYOR AND TOWN COUNCIL
SUBJECT: APPROVE THE MEMORANDUM OF UNDERSTANDING BETWEEN THE TOWN
OF LOS GATOS AND LOS GATOS POLICE OFFICERS' ASSOCIATION FOR THE
PERIOD OCTOBER 1, 2014 THROUGH SEPTEMBER 30, 2016 AND
AUTHORIZING THE TOWN MANAGER TO EXECUTE THE MEMORANDUM OF
UNDERSTANDING
OCTOBER 1, 2014
Savings to the Town that are incorporated in the package proposal include:
• Actuarial Savings from Medicare Re- alignment: $65,000 per year
• Eliminate Sergeant Top Step Pay for New Sergeants (4 -step range): $11,000 per Sergeant per year
• Eliminate Specialty Pay for Detective and Administrative Supervisors: $11,000 per position per year
The actual savings from the 4 -step range and the elimination of specialty pay will depend upon
staffing decisions related to promotions and the timing of appointments.
A portion of the funds to support the net costs for this agreement in FY 2014/15 has been identified in
the existing budget. Any remaining funding required for the current fiscal year will be included in the
mid -year budget review process.
Ongoing costs resulting from this agreement will be included in the Town's base operating budget for
future fiscal years.
Attachments:
1. POA Package Proposal / Summary of Changes
2. POA Salary Schedule
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PACKAGE PROPOSAL/ SUMMARY OF CHANGES
FOR THE MEMORANDUM OF UNDERSTANDING
BETWEEN THE TOWN OF LOS GATOS
AND THE LOS GATOS POLICE OFFICERS' ASSOCIATION
September 3, 2014
This document is intended to serve as a summary of the Town's package proposal. Specific language changes will be
incorporated in the MOU as agreed in negotiations. Unless stated, changes are effective upon ratification of the MOU by
the POA and Town.
• Term
2 years — October 1, 2014 through September 30, 2016
• Compensation
October 1, 2014 October 1, 2015
Officer
1.5% Cash
2.0% to Base Salary
Corporal
1.5% Cash
2.0% to Base Salary
Sergeant
1.5% Cash
2.0% Cash
• Personal Leave
Increase Personal Leave from 20 to 24 hours.
• Vacation
Increase cash -out to 2x per year, in July and December.
• Sergeant Salary Range
The Sergeant rank will become a 4 -step range and the current 5th step will be eliminated. Any new Sergeant
appointed after adoption of this MOU will be appointed to the 4 -step range. Acting Sergeant pay will be paid at
the top of the new range.
• Specialty Pay Sergeants and Corporals Assigned to Detective and Administrative Positions
Should the Town implement a Lieutenant rank, any specialty pays for Detective and Administrative positions will
be eliminated for the ranks of Corporal and Sergeant.
• Health and Welfare Benefits — Effective January 1, 2015
For Dependent coverage: The cost of dependents is shared 90% paid by Town and 10% paid by employee at the
Kaiser North rate.
(All other provisions remain the same.)
• Retiree Health Benefits— Effective January 1, 2015
For Medicare Employees: Town will align retiree contributions to the CaIPERS Medicare - Supplemented rates for
Kaiser North.
Changes in language for clarifying purposes, with no change to existing practice:
• CalPERS updates as required by law.
• Non - discrimination updates as required by law.
### ATTACHMENT 1
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Town of Los Gatos / POA Salary Schedule
MOU October 1, 2014 - September 30, 2016
Police Officer
Police Corporal
Police Sergeant
(Prior Sgts Only)
Current Oct 1, 2014 Oct 1, 2015
1.5% Cash 2% COLA
Step 1
$42.54
$1,327
$43.39
Step 2
$44.67
$1,394
$45.56
Step 3
$46.90
$1,463
$47.84
Step 4
$49.25
$1,537
$50.24
Step 5
$51.71
$1,613
$52.74
1.5% Cash 2% COLA
Step 1
$44.65
$1,393
$45.54
Step 2
$46.89
$1,463
$47.83
Step 3
$49.23
$1,536
$50.21
Step 4
$51.69
$1,613
$52.72
Step 5
$54.28
$1,694
$55.37
1.5% Cash 2% Cash
Step 1
$54.65
$1,705
$2,273.44
Step 2
$57.38
$1,790
$2,387.01
Step 3
$60.25
$1,880
$2,506.40
Step 4
$63.27
$1,974
$2,632.03
Step 5
$66.43
$2,073
$2,763.49
ATTACHMENT
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