Staff Report
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: 04/18/2017
ITEM NO: 4
DATE: APRIL 11, 2017
TO: MAYOR AND TOWN COUNCIL
FROM: LAUREL PREVETTI, TOWN MANAGER
SUBJECT: APPROVE A LETTER OF AGREEMENT TO THE LABOR AGREEMENT
BETWEEN THE TOWN OF LOS GATOS AND THE ASSOCIATION OF FEDERAL,
STATE, COUNTY AND MUNICIPAL EMPLOYEES, AND AUTHORIZE THE
TOWN MANAGER TO EXECUTE THE LETTER OF AGREEMENT TO THE
MEMORANDUM OF UNDERSTANDING
RECOMMENDATION:
Approve a Letter of Agreement to the labor agreement between the Town of Los Gatos and the
Association of Federal, State, County and Municipal Employees (AFSCME), and authorize the
Town Manager to execute the Letter of Agreement (Attachment 1) to the Memorandum of
Understanding (MOU).
BACKGROUND:
On November 15, 2016, Council approved a successor MOU between the Town and AFSCME for
the period of July 1, 2016 through June 30, 2018 that included a 2.5% salary increase
retroactive to July 1, 2016. Because negotiations had not concluded between the Town and its
other two bargaining units, the Town Employees’ Association and the Police Officers’
Association, the MOU contained a provision for a wage reopener to discuss an increase to be
effective on July 1, 2017.
Since November, successor MOU’s were approved between the Town and its two other
bargaining units. In accordance with the Town’s Employer-Employee Relations Resolutions No.
1974-41, representatives of the Town and AFSCME have met and conferred in goo d faith and
within the scope of representation in an effort to reach a Letter of Agreement to the existing
MOU.
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SUBJECT: APPROVE A LETTER OF AGREEMENT TO THE LABOR AGREEMENT BETWEEN
THE TOWN OF LOS GATOS AND ASSOCIATION OF FEDERAL, STATE, COUNTY
AND MUNICPAL EMPLOYEES AND AUTHORIZE THE TOWN MANAGER TO
EXECUTE THE LETTER OF AGREEMENT TO THE MEMORANDUM OF
UNDERSTANDING
APRIL 11, 2017
S:\COUNCIL REPORTS\2017\04-18-17\AFSCME\Staff Report FINAL.docx 4/13/2017 10:30 AM LV
DISCUSSION:
The Town and AFSCME met in April specific to the wage reopener contained in the current
MOU and a tentative agreement to the MOU was reached. The agreement was subsequently
ratified by AFSCME members. The compensation provision of the agreement is a 2.5% salary
increase effective at the beginning of the pay period that includes July 1, 2017 as reflected in
the Salary Schedule (Attachment 2).
CONCLUSION:
The Letter of Agreement to 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 Letter of Agreement be approved and that the Town
Manager be authorized to execute the Letter of Agreement to the AFSCME MOU.
FISCAL IMPACT:
The anticipated fiscal impact for FY 2017/2018 is $34,791 and the total two year on -going cost
is $109,256. Funding to support the cost impact will be incorporated into the Town’s operating
budget.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
Attachments:
1. Letter of Agreement to the AFSCME MOU
2. Salary Schedule for AFSCME Classifications Effective July 1, 2017