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Attachment 1LETTER OF AGREEMENT BY AND BETWEEN TOWN OF LOS GATOS AND AMERICAN FEDERATION OF STATE, COUNTY AND MUNICIPAL EMPLOYEES (AFSCME) This Letter of Agreement (“Agreement”) is effective April 18, 2017 and has been jointly prepare by designated representatives for the Town of Los Gatos (“Town”), a public agency within the meaning of Section 3501(c) of the Government Code of the State of California, and the American Federation of State, County and Municipal Employees (“AFSCME”), a recognized employee organization within the meaning of Section 3501(b) of the Government Code of the State of California, with reference to the following: WHEREAS, the parties negotiated a successor Memorandum of Understanding with a term of July 1, 2016 through June 30, 2018 that included a 2.5% salary increase effective at the beginning of the pay period that includes July 1, 2016. In addition, the parties agreed to a wage reopener to negotiate a salary increase for the 2017/2018 fiscal year. WHEREAS, the Town and AFSCME have engaged in good faith negotiations resulting in this letter of understanding with the term set forth below. NOW, THEREFORE, the Town and AFSCME, after meeting and conferring in good faith under section 3505 of the Government Code of California, understand and agree that the Town will provide AFSCME represented employees with a 2.5% salary increase effective at the beginning of the pay period that includes July 1, 2017. IN WITNESS WHEREOF, the parties hereto have executed this Letter of Agreement. FOR AFSCME: FOR THE TOWN OF LOS GATOS ___________________________ ___________________________ John Tucker Laurel Prevetti Business Agent Town Manager ___________________________ ___________________________ Sherrie Olsen Lisa Velasco Parks & Maintenance Worker Human Resources Director AFSCME President ___________________________ Allyson Hauck Renne Sloan Holtzman Sakai LLP Approved as to form: ___________________________ Robert Shultz Town Attorney ATTACHMENT 1