Staff Report A
PREPARED BY: LISA VELASCO
Human Resources Director
Reviewed by: Town Manager, Town Attorney, and Finance Director
110 E. Main Street Los Gatos, CA 95030 ● 408-354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 12/20/2016
ITEM NO: 5A
DATE: DECEMBER 15, 2016
TO: MAYOR AND TOWN COUNCIL
FROM: LAUREL PREVETTI, TOWN MANAGER
SUBJECT: APPROVE SALARY INCREASES FOR UNREPRESENTED MANAGEMENT,
CONFIDENTIAL, AND TEMPORARY/HOURLY EMPLOYEES
RECOMMENDATION:
Approve salary increases for unrepresented Management, Confidential, and Temporary/Hourly
employees.
BACKGROUND:
On November 15, 2016 Council approved a labor agreement with the Association of Federal,
State, County and Municipal Employees (AFSCME). Tonight , staff is also requesting approval of
a labor agreement with the Town Employees’ Association (TEA) as part of a separate agenda
item.
Unrepresented employees are those that are salaried Management, hourly Confidential or
Council Appointees and do not collectively bargain. 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 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 contained
in individual Employment Agreements. Staff is not recommending a salary change for Council
Appointee employees.
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SUBJECT: REQUEST TO APPROVE AN ACROSS-THE-BOARD INCREASE FOR
UNREPRESENTED EMPLOYEES
DATE: DECEMBER 20, 2016
S:\COUNCIL REPORTS\2016\12-20-16\05A Staff Report Unrepresented 12.20.16.docx 12/15/2016 4:56 PM SLL
DISCUSSION:
The AFSCME agreement contains a 2.5% across-the-board increase retroactive to July 1, 2016
and a wage reopener to discuss an increase to be effective July 1, 2017. The TEA agreement
contains a 2.5% across-the-board increase retroactive to July 1, 2016 and a 2.5% across-the-
board increase effective July 1, 2017. In addition, the TEA agreement provides market
adjustments for nine (9) classifications that are still below market median after providing the
first July 1, 2016 across-the-board increase.
Staff is recommending a 2.5% across-the-board increase retroactive to July 1, 2016 and a 2.5%
across-the-board increase effective July 1, 2017 for unrepresented Management and
Confidential employees.
Temporary/Hourly classification rates are generally benchmarked to the full-time counterpart
positions and as such, staff is recommending a 2.5% across-the-board increase effective January
1, 2017 and a 2.5% across-the board increase effective July 1, 2017. In addition, market
adjustments effective January 1, 2017 for Temporary/Hourly classifications that overlap with
TEA classifications are recommended to provide continued parity with the full-time counterpart
positions.
CONCLUSION:
For consistency between represented and unrepresented employees, staff recommends that
the across-the-board increase terms for AFSCME (Year 1) and TEA (Year 1 and Year 2) also apply
to Management and Confidential employees. In addition, it is recommended that the first
across-the-board increase and market adjustments for Temporary/Hourly classifications are
effective January 1, 2017 and then align with the across-the-board increase for TEA,
Management and Confidential effective July 1, 2017.
FISCAL IMPACT:
The anticipated fiscal impact for the across-the-board increases in FY 2016/2017 is $149,759
and the impact for FY 2017/2018 is $172,136. The total two year on-going cost is $471,654.
The total cost impact will be absorbed in the Town’s existing operating budget.
PAGE 3 OF 3
SUBJECT: REQUEST TO APPROVE AN ACROSS-THE-BOARD INCREASE FOR
UNREPRESENTED EMPLOYEES
DATE: DECEMBER 20, 2016
S:\COUNCIL REPORTS\2016\12-20-16\05A Staff Report Unrepresented 12.20.16.docx 12/15/2016 4:56 PM SLL
Attachments:
1. Salary Schedule for Town Council and Management Effective July 1, 2016
2. Salary Schedule for Confidential Classifications Effective July 1, 2016
3. Salary Schedule for Temporary/Hourly Classifications Effective January 1, 2017
4. Salary Schedule for Town Council and Management Effective July 1, 201 7
5. Salary Schedule for Confidential Classifications Effective July 1, 2017
6. Salary Schedule for Temporary/Hourly Classifications Effective July 1, 2017