Los Gatos City Council
June 7, 2022

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ViCW YOUR PROPERTY, OUR PRIORITY
We Manage:

Downtown Centers
Retail and Commercial / Industrial
Portfolio Maintenance Packages
Big Box Retailers
Major Power Centers
Commercial & Industrial Properties
C /O: Property Managers, Assets Managers & Private Investors, REIT' s.

Residential Sweeping Prgms
State highway Sweeping
Our Range of Services Include:

Parking Lot Sweeping
Day Porter /Janitorial Services
Pressure Washing & Steam Cleaning
Window Washing & Awning Cleaning
Landscaping maintenance; including all irrigation capabilities & construction Graffiti Prevention and Abatement
City Street Sweeping Services
Landscaping
Tenant Improvements ( TI), including Vanilla Shell
Painting
Other Property Maintenance: Sign Removal, Bumper & Ballard Replacement Building Washing/ Window Washing
Special Pick- ups/Special Service - Illegal Dump Pick Up Bin Hauling
What Differentiates Us:

Our attention to detail matters
In House Crews
Arsenal of Equipment
Our belief that the job is not done until the customer is satisfied We keep learning to do better and innovating ways to better accomplish the tasks at hand Rapid reaction to customer demands with Pro- Active Management Tailored services to target client' s critical issues and concerns Depth of experience in the maintenance and sweeping industry Proven methods to ensure clients receive consistent services Superior rapport with client from the initiation and completion of the job Statewide experience for a balanced state and local perspective USS has " Feet on the Street"
Corrective action plans
Pictures provided before & after
Quality assurance measures are in place to make sure the work was completed properly We offer work schedules on a yearly, monthly, weekly, daily basis We operate the latest in sweeping equipment and diesel exhaust technology We have full time mechanics operating out of each of our facilities and routinely maintain our equipment
Experience staff55 Years history afford confidence in dedication & reliability Compliant with all City, State and Federal laws for clean water conservation & pollution prevention
Corporate Offices: 760 E. Capitol Avenue - Milpitas, CA. 95035 - Ph: 800.6479337 - Fax: 408.258.0122 Milpitas• Stockton • Sacramento • Santa Roso • Los Angeles • Reno • Phoenix

1I .

SOWLVI
since 1938

YOUR PROPERTY, OUR PRIORITY
Technical Proposal
We are a true leading in -house exterior maintenance company. Few companies have our experience, breadth ofhard earned knowledge and realfield experience a- equipment.

Our philosophy of hard work, determination, customer satisfaction and open communication has been a winning combination for our company. Our philosophy to use the most modern and effective equipment has enabled us to stand out within the market place. Our fiscal responsibility and attention to the bottom line has ensured our success through both good and bad economic times enabling us to grow during strong economic conditions and expand and capitalize during economic downturns.

We have successfully implemented countless municipal, state, and private project roll outs. Our company has been structured to handle projects specifically like the Stoneridge Mall Parking Lot Sweeping Maintenance Program. We have an advanced phone system with 24 hour a day 7 day a week 365 days a year live coverage through our direct and 1 - 800 phone lines. Each of our companies and all divisions are tied into our emergency dispatch capabilities for fast turn around and deployment of the necessary equipment to handle any number of field emergencies and issues with LOCAL staff to ensure your project can always be manned with a full team.

Proposed Methodoloev
Our extensive experience with street level crews is second to none. USS understands the unquestionable need to working at the speed of business in the management and dispatch of our wide - ranging work crews throughout our different
business segments and businesses. We' ve quite simply been in the business of dispatching work crews for over 55 years.

Following the initial contract set up and transition USS will appoint a primary sweeper operator that will be scheduled to maintain the parking lots. One of the benefits of working with USS and our sister organizations is we have access to additional sweepers with various sweeping results. Your assigned sweeper operator my request to his supervisor internally that we rotate a regenerative air machine for a broom machine. Perhaps due to gravel build up or local construction hampering the desired performance of our air machine. These services are all proactive seamless services at no additional costs.

The assigned manager works daily on quality assurance and follows up on inquiries. The designated managers record and organize all month end reports. These back end operations are all proactive and there is only positive future impact to for your site.

Inclement Weather issues are a constant concern in our line of work. We track weather patterns during the winter months to ensure proper scheduling and re- scheduling of work takes place to make certain any weather related scheduling issues are addressed immediately. Often times extra sweeps need to be scheduled to ensure a quick response to missed sweeps or additional equipment is routed to help offset missed service days on account of inclement weather. Fortunately the size and depth of our crews enables us to quickly and efficiently re -route the required crews and equipment to ensure all schedules are quickly amended and put back on track without ever being noticed by our clients.

Corporate Offices: 760 E. Capitol Avenue'" Milpitas, C4. 95035 ` Ph: 800. 647. 9337 - Fax. 408. 158. 0111 Milpitas• Stockton • Sacramento • Santa Rosa • Los Angeles • Reno • Phoenix www, UniversaiSiteSe" tces. com • Contractor License # 907009

I
Work Plan
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YOUR PROPERTY, OUR PRIORITY
IfUniversal Site Services, Inc. is awarded our plan of action will involve firstly making introductions of all key players within our organization involved with the contract.

During this introduction, we will provide demonstrations of our equipment. In addition at this time we will be open for questions about our field procedures. Upon commencement of the contract throughout the entire rotation of each location there will be additional " hands -on" management in the field while they are working to ensure that all questions are answered and the field teams stay on track. Thereafter, management will be involved daily and follow up on reports, customer services, and field operations.

Work Force / Crews
A team of one lead sweeper operator along with 1 field manager will be assigned to the Parking Lot Sweeping contract. Our teams are professionally trained with uniformed operators and laborers, seasoned in the field of exterior maintenance and trained to handle any duties to meet the needs of Simon to guarantee a successful implementation and superior levels of service. Our managers report to our Director ofOperations who reports directly to ownership.

Employee Absenteeism and the Unforeseen
We have a number of contingency plans in place to handle any number ofincidences that can happen during a contract period. When you work with Universal Site Services you can be confident that we have the required back up in place to compensate for uncertain issues that do happen. Unforeseen sickness, holidays, and employee absences are not something our clients need to worry about when contracted with Universal. We have field leads operating our larger sweepers on constant rotation detailing out our properties under contract that step in to handle unforeseen employee absenteeism. We have a work force of cross - trained people from which to pull from to ensure coverage is seamless during the unexpected and holidays for our employees.

In the case of illness, vacations, holiday special events or changing weather or traffic conditions, USS employs approximately sixty qualified operators who could be available to provide sweeping services in the case of additional needs to complete routes or provide additional services. All of our operators have considerable experience with various types of sweeping and are flexible to fulfill thew assignments.

Emergency Services
All managers are on duty 24// 7. Our estimated time of arrival for emergency call out will be a minimum of 1 hour during working hours described at 7: 00 AM to 5: 00 PM Monday — Friday. Arrival for after hour call outs should not exceed 2 hours. A twenty- four ( 24) hour emergency number is available. All personnel are equipped with communication.

Ouality Control Measures
The benefits of working with USS is our multiple tiers of management working to ensure that our contracts and our customer relations are all in -line with quality expectations set forth by our team as well as yours.

When in partnership with USS you also have access to the benefits and service expertise of both Statewide Construction Sweeping and Contract Sweeping Services.

Corporate Offices: 760 E. Capitol Avenue' Milpitas, [ 4.95035 - Ph: 800. 647. 9337 Fax: 408.258. 0122 Milpitas• Stockton • Sacramento • Santo Rosa • Los Angeles • Rena • Phoenix

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sill, 1953

YOUR PROPERTY, OUR PRIORITY
Communication between Manager and Field Operations is through basic telephone communications, email, texts, and photos. Calling our company M -F 6am to 6pm will offer live communications and all parties involved have 24/7 cell phone and email access for after hours. Time to correct efficiencies during business hours will be handled within the same day occurrences. Information passed overnight will be handled next business day as a priority. Management will often work with the Field Operations in the field to ensure a need is addressed " full circle ".

Client References
Josh Kalkhorst
Director ofOperations
Stanford Shopping Center
660 Stanford Shopping Center
Palo Alto, CA 94303
Ph: ( 650) 617- 8202
Email: JKalkhorst @simon. com
Nancy Williams
Director of Operations
Hillsdale Shopping Center
60 Hillsdale Mall
San Mateo, CA 94403
Ph: ( 650) 345- 8222
Email: [email protected]
Municipal References
Jennifer Callenbach
Senior Property Manager
LEA Realty
160 W. Santa Clara St Suite 950
San Jose, CA 95113
Ph: ( 08) 654- 8765
Email: [email protected]
Jeffrey Helmold
Facilities Manager
Westfield Valley Fair
2855 Stevens Creek Blvd, Suite 2178
Santa Clam, CA 95050
Ph: ( 408) 248- 4450
Email: jhelmold @us. westfield. com
City of Pleasanton - Residential Street Sweeping
3333 Bush Street, Pleasanton, CA 94566 ...................Craig Higgins Dena Rosa
Senior Property Manager
De Aza Properties
960 N. San Antonio Road, Suite 114
Los Altos, CA 94022
Ph: ( 650) 209- 3232
Email: dena@deanzaproperties. com
925/ 931 - 5582
City of Saratoga - Residential Street Sweeping & Pressure Washing 19700 Allendale Ave. Saratoga, CA 95070 ............ Rick Torres 408/ 868 - 1244 Town of Los Gatos - On Grounds Maintenance and Downtown Sidewalk Washing P. O. Box 655 Los Gatos, CA 95031 ...................... Steve Regan 408/761 -4547 City of Mountain View - Various Sweeping & Pressure Washing 231 N. Whisman Road MTV, CA 94039 ................ Bruce Huribert 6501903 - 6257 City of Campbell - Various Sweeping
70 N First Street Campbell, CA 95008 ...................... Diana Johnson 408/ 866 -2145 Corporate Offices: 760 E. Capitol Avenue ` Milpitas, C4. 95035 —Ph: 800. 647. 9337 - Fax. 408. 258. 0122 Milpitas• Stockton • Sacramento • Santa Rosa • Los Angeles • Reno • Phoenix www. universolsiteservices. com • Contractor License # 907009

since 1958

YOUR PROPERTY, OUR PRIORITY
Brief Resumes of Those Directly Involved with this Protect Gina Vella - President / Owner
Gina joined the Universal Site Services Team in 1990 after years of corporate politics and experience in owning her own clothing line. By clearly understanding the individual needs of each customer Gina has built a strong and attentive team to cater to individuality and partnership philosophy. Gina attributes her success in simple terms, " each customer has individual needs and requirements. Understand what they are and carry through."
Jerry Nunez - Director of Operations ( Direct Overseeing Operations for the Project) Jerry' s experience in the outdoor maintenance industry extends over 20 years, 13 with Universal Site Services, Inc.

Jerry' s involvement with the project will be background operations. Jerry has the unique ability to facilitate Regional Managers and assist field personnel to offer seamless operations and the highest level of quality and expertise.

Chris Dickie - Director of Sales & Marketing
Dynamic self - starter with 17 years of accomplished professional experiences both in the corporate environment and as an entrepreneur. Both experiences have led to a successful business path of self - discovery, broadening experiences and professional skill sets to take on the never - ending challenges we are constantly faced with in order to develop win -win strategies for all involved.

Anthony Urbino - Regional Operations Manager (Direct Supervisor for the Project) Anthony brings 12 years of customer service, employee management, and account management experience to the team. If awarded to USS, Anthony will provide oversight of services and apply his experience with the site maintenance towards a comprehensive service plan aimed at adapting to any changes needed to improve conditions and guarantee success.

David Sanchez, Regional Sales Manager - David delivers to our organization over twenty years' experience and knowledge of inside janitorial and outside sales and maintenance. His past experience working closely as an account representative for large organizations affords our customers the most efficient responsiveness to their every request and maintenance needs. David' s capacity to speak Spanish is also a great asset as his ability to communicate and coordinate services with laborers in the field has proven to be of enormous value.

Corporate Offices: 760 E. Capitol Avenue - Milpitas, C4. 95035 - Ph: 800. 647. 9337 - Fox.* 408. 258. 0122 Milpitas• Stockton • Sacramento • Santa Rosa • Los Angeles • Reno • Phoenix

Key Staff
sm. / 933

YOUR PROPERTY, OUR PRIORITY
First
Name
Last
Name
Phone
Numbers
Ext Cell Phone # Title Email
Anthony Urbino 408 - 228 -4572 4572 408 -642 -4339 Territory Manager Aurbin universalsiteservices. com Chris Dickie 408 - 228 -4581 4581 408 930 -9906 Director of Sales & Marketing Cdickie@universalsiteservices. com David Sanchez 408 - 907 -5848 5848 408 -210 -0836 Regional Sales Manager Dsanchez@universalsitcscrvices. com Gina Vella 408- 907 -5850 5850 408. 639 -5711 President - Princible Gvella@universaWteservices. com Jerry Nunez 408. 228 -4570 4570 408 - 639 -0736 Director of Operations JNunez@universalsiteservices. com Joe Vella 408 - 228 -4568 4568 408 -639 -6005 Vise President - Princible JVell universalsiteservices. com Additional Information
Technology and Equipment have always been part of Universal Site Services road map of success. We invented the Parking Lot Sweeper, we modernized the industrial street sweeper by creating the high velocity air vacuum systems, and we have helped in the development and production of high volume pressure washing and reclamation systems.

We owned the manufacturing and distribution ofparking lot, construction and municipal sweepers. We still have an equipment financing company, Sweep Lease, Inc., that offers financing on equipment. We put many people that would otherwise not qualify into positions of company ownership.

We feel it necessary to employ the most modern equipment available on the market for the SCCC parking lot maintenance program. This is an opportunity to use equipment that will leave a lasting impression with visitors and residence alike. We do things with more ingenuity, better and distinctive.

Corporate Offices. 760E. Capitol Avenue'" Mllpitas, CA. 95035 - Ph: 800. 647. 9337 - Fax: 408158. 0122 Milpitas• Stockton • Sacramento • Santa Rasa • Los Angeles • Reno • Phoenix www. universolsiteservices. cam • Contractor License # 907009

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Shx 1958

YOUR PROPERTY, OUR PRIORITY
Graffiti Abatement
Unfortunately, graffiti is a situation that leaves your property looking degraded and unsafe. It is vital to get graffiti removed as quickly as possible. By having an effective and timely graffiti removal and abatement program in place, your property can be maintained in the original condition minus the unsightly graffiti.

Got Tagged, Call us ( 800) 647 -9337
Abating Graffiti for Over 30 Years
We' ve been abating Graffiti for over 30 years. The good news is that our graffiti removal services are very effective in both restoring your property and deterring graffiti vandals by removing their handy -work quickly in short order. .

Graffiti needs to be removed within 24 hours. As soon as you notice graffiti call us and we' ll remove it.

Graffiti Prevention & Abatement
USS' s Graffiti Prevention & Abatement Teams are trained to use best of class techniques and removal products. We provide surface analysis, consultation, demonstrations, testing and full warranted applications of Anti - Graffiti coatings. We offer full product performance warranties and ongoing service and maintenance programs to fit all budgets. We use cutting -edge technology to protect your property.

Municipal Street Sweeping
With Universal Site Services you will have one of the largest fleet of industrial street sweepers at your disposal 24 / 7. We Sweep Highways, Streets, Construction Sites and Parking Lots.

Universal Site Services is always ready to sweep for you and we guarantee our work. We offer construction sweeping, highway and street sweeping, parking lot sweeping, attenuator services and more.

We can keep your downtown streets debris -free, the dust and dirt under control on your parking lots and construction sites, and the inspectors and the community happy with our attention to detail and our environmental protection.

We have truck- mounted attenuator services that help ensure your crews are safe and visible while on the job. Our professional operators are dependable and on time If there is a need for supplemental street sweeping services, or event clean np services we are ready to serve.

Corporate Offices: 760 E. Capitol Avenue - Milpitas, [ 4. 95035 - Ph: 800. 647. 9337 - Fax: 408. 258. 0122 Milpitas• Stockton • Sacramento • Santa Rasa • Los Angeles + Reno • Phoenix www. Uniwrsa] SiteSemices. com • Contractor License # 907009 Page 268 Sinn 1958

YOUR PROPERTY, OUR PRIORITY
Construction & Maintenance Service
USS can offer Complete Property Maintenance with our Construction Maintenance division. Maintaining your city property is a crucial aspect in keeping and increasing its value. USS understands your success is related to the proper maintenance of your property.

Vacancy Clean Out and Move In Prep
Minor Asphalt Repair & Maintenance
Parking Lot Striping Services
Anti Graffiti Coatings
Graffiti Prevention & Removal
Trash Receptacle Replacement
Paint & Coating Services — Interior & Exterior Painting — Epoxy' s & Stains Storm Drain Clean Out
Bumper Install & Replacement
Ballard Install & Replacement
Roof & Gutter Cleanout
Concrete Repairs & Install
Signs Installation & Repair
On Site Welding
Need Something Fixed, Call us and consider it done: ( 800) 647 — 9337 Our services are available 24 hours a day, seven days a week, and your satisfaction is guaranteed. We offer free estimates and personal service.

Our equipment is professionally maintained to ensure consistent reliable service. Your complete satisfaction is our goal, we will treat your property as ifit were our own.

Hauling Services
No time to clean up the junk and debris that has accumulated on your property? Are you feeling overwhelmed ofhandling such a big task? i
1 Universal Site Services is committed to providing prompt and professional quality hauling services at a competitive price. Upon approval of removal, our hauling crews are dispatched during the week Monday — Friday lam to 4pm. Our hauling crews are equipped with dump truck and large trailers for large hauling items ofalmost any type.

Items of Removal Include: Refrigerator, Tires, Microwaves, Cardboards, Plastic Containers, Televisions, Computers, Furniture, Mattresses, & whatever else they dump in your city Corporate Offices: 760 E. Capitol Avenue ^ Milpitas, CA. 95035 ` Ph: 800.647.9337 "' Fax: 408.258. 0122 Milpitas• Stockton • Sacramento • Santa Rosa • Los Angeles • Reno • Phoenix www. univenotsitese" jces. com * Contractor License # 907009

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Conclusion
store 1938

YOUR PROPERTY, OUR PRIORITY
Universal Site Services is honored to participate in this proposal process. We appreciate the opportunity to demonstrate to management and the partners why we believe we are best suited to handle the task at hand and to put our best foot forward in ensuring a successful partnership between all parties involved within a project ofthis magnitude.

We take each and every responsibility bestowed upon us very seriously and work diligently to ensure a job well done every time. Most importantly, when our clients expectations are not met we guarantee we will make it right immediately.

Thank you for the opportunity to present you with this proposal.

Presented By:

David Sanchez
Regional Sales Manager
Universal Site Services
Mobile: 408. 210. 0836
Desk: 408.907. 5848
Email: dsanchezAuniversalsiteservices com
Corporate Offices: 760 F. Capitol Avenue - Milpitas, CA. 95035 - Ph: 800.647.9337'" Fax: 408.158. 0112 Milpitas• Stockton • Sacramento • Santa Rosa • Los Angeles • Reno • Phoenix www. Universalsiteservices. com • Contractor License # 907009 Page 270

TOWN OF LOS GATOS

COUNCIL AGENDA REPORT
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DATE: JULY 27, 2018
TO: MAYOR AND TOWN COUNCIL
FROM: LAUREL PREVETTI, TOWN MANAGER
MEETING DATE: 08/ 07/ 2018
ITEM NO: 7
SUBJECT: AUTHORIZE THE TOWN MANAGER TO EXECUTE A FOUR - YEAR

AGREEMENT FOR SERVICES WITH UNIVERSAL SITE SERVICES FOR

ENHANCED DOWNTOWN GARBAGE AND RECYCLING RECEPTACLE

COLLECTION AND CLEANING SERVICES IN AN AMOUNT NOT TO EXCEED 38, 247 FOR FISCAL YEAR 2018/ 19, PLUS ADJUSTMENTS ANNUALLY

THEREAFTER FORA TOTAL AGREEMENT AMOUNT NOT TO EXCEED
187, 737
RECOMMENDATION:

Authorize the Town Manager to execute a four -year Agreement for Services ( Attachment 1) with Universal Site Services for downtown garbage and recycling receptacle collection and cleaning services in an amount not to exceed $ 38, 247 for Fiscal Year 2018/ 19, plus adjustments annually thereafter for a total agreement amount not to exceed $ 187, 737.

BACKGROUND:

The Town of Los Gatos has utilized contractual services to provide enhanced downtown garbage collection and recycling on the weekends since August 2015 and the current agreement for services with Universal Site Services will expire on August 31, 2018.

This agreement supports the effort to augment trash collection in the downtown area on the weekends and to provide recycling services to the downtown. The Town' s franchise hauler for trash and recycling is unable to meet all of the service needs of seven - day trash service and downtown recycling service.

PREPARED BY: JIM HARBIN
Facilities & Environmental Services Manager
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, Finance Director, and Director of Parks and Public Works
110 E. Main Street Los Gatos, CA 95030 • 408 - 354 -6832 www. fosgatosca. gov

PAGE 2 OF 3
SUBJECT: AUTHORIZE THE TOWN MANAGER TO EXECUTE A FOUR -YEAR AGREEMENT

FOR SERVICES WITH UNIVERSAL SITE SERVICES FOR ENHANCED DOWNTOWN

GARBAGE AND RECYCLING RECEPTACLE COLLECTION AND CLEANING SERVICES IN AN AMOUNT NOT TO EXCEED $ 38, 247 FOR FISCAL YEAR 2018/ 19

PLUS ADJUSTMENTS ANNUALLY THEREAFTER FOR A TOTAL AGREEMENT AMOUNT NOT TO EXCEED $ 187, 737
JULY 27, 2018
BACKGROUND ( cont' d):

Implementation of the current service model of contracted recycle and enhanced trash hauling on weekends in the downtown, combined with an increase in recycling receptacles, has significantly decreased the incidents of overflowing trash receptacles with a corresponding decrease to the amount of waste going to the landfill. Staff continues to increase the number of recycling receptacles to meet the needs of the downtown with the ultimate goal of completing one -to -one receptacle pairings. Currently, the service includes 61 trash receptacles paired with 50 recycling receptacles.

In addition to collection, Universal Site Services provides cleaning services of the receptacles.

The receptacle design leads to soiled surfaces, which have historically been a nuisance downtown.

DISCUSSION:

Recently, staff prepared a Request for Proposals ( RFP) for the following service categories:

Downtown weekend garbage collection
Downtown recycling collection on weekends and midweek
Special cleanings and service as needed
Firms were asked to provide their capability and past experience with collection and recycling service and to provide pricing for each category. One proposal was received on June 18, 2018 from Universal Site Services. While only one proposal was received staff was comfortable moving forward in the process based on peer review, industry knowledge, and past experience.

Staff determined that Universal Site Services is the best qualified and the most cost competitive firm to provide the requested services. Universal provides similar services to multiple corporations, municipalities, and public agencies around the Bay Area and have been in business since 1958. The Town' s experience with Universal providing enhanced garbage and recycling services as well as other related cleaning services for the Town has been very successful, with high quality service, great communication, and positive responses to issues.

The Agreement includes line item costs for special as- needed services and the addition of receptacles to the inventory. Staff anticipates potential extra service requests around events 5: \ COUNCIL REPORTS \ 2018 \08 -07 -18 Commission Interviews and Closed Session \ Garbage services \07 staff Report FINAL. docx 8/ 2/ 2018 3: 50 PM 1H

PAGE 3 OF 3
SUBJECT: AUTHORIZE THE TOWN MANAGER TO EXECUTE A FOUR -YEAR AGREEMENT

FOR SERVICES WITH UNIVERSAL SITE SERVICES FOR ENHANCED DOWNTOWN

GARBAGE AND RECYCLING RECEPTACLE COLLECTION AND CLEANING SERVICES IN AN AMOUNT NOT TO EXCEED $ 38,247 FOR FISCAL YEAR 2018/ 19

PLUS ADJUSTMENTS ANNUALLY THEREAFTER FOR A TOTAL AGREEMENT AMOUNT NOT TO EXCEED $ 187,737
JULY 27, 2018
DISCUSSION ( cont' d):
and holidays, and an increase in recycling receptacles added to the inventory downtown to bring the garbage to recycling receptacle ratio equal.

The four -year agreement term allows for continuity of service and maximizes savings by engaging the firm for multiple years. The contract language provides for cancellation should the need arise during the contract term.

CONCLUSION:

Authorize the Town Manager to execute a four -year Agreement for Services with Universal Site Services for downtown garbage and recycling receptacle collection and cleaning services in an amount not to exceed $ 38, 247 for Fiscal Year 2018/ 19, plus adjustments annually thereafter for a total agreement amount not to exceed $ 187, 737.

FISCAL IMPACT:

Funds for the services for FY 2018/ 19 have been appropriated in the FY 2018/ 19 Parks and Public Works Operating Budget.

ENVIRONMENTAL ASSESSMENT:

This is not a project defined under CEQA, and no further action is required.

Attachment:

1. Agreement for Services
5: \ COUNCIL REPORTS \ 2018 \ 08 - 07 -18 Commission Interviews and Closed Session \ Garbage services \ 07 Staff Report FINAL. docx 8/ 2/ 2018 3: 50 PIA JH

PREPARED BY: Jim Harbin
Superintendent
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, Finance Director, and Interim Director of Parks and Public Works
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov

TOWN OF LOS GATOS

COUNCIL AGENDA REPORT
MEETING DATE: 06/07/2022
ITEM NO: 18
DATE: May 26, 2022
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Authorize the Town Manager to Execute a Fourth Amendment to the Agreement for Services with Brightview Tree Care Services, Inc. to Increase Compensation for Fiscal Year 2021/22 in an Amount of $30,000 for a Total Annual Amount Not to Exceed $155,000, for a Total Agreement Amount Not to Exceed $996,000
RECOMMENDATION:

Authorize the Town Manager to execute a fourth amendment (Attachment 1) to the Agreement for Services with Brightview Tree Care Services, Inc. to increase compensation for Fiscal Year (FY) 2021/22 in an amount of $30,000 for a total annual amount not to exceed $155,000, for a total agreement amount not to exceed $996,000.

BACKGROUND:

The Town of Los Gatos utilizes contractual tree trimming and removal services to maintain the Town’s urban forest. On June 5, 2018, the Town Council authorized the Town Manager to execute a five-year Agreement for Services (Attachment 2) with Brightview Tree Care Services, Inc. for tree trimming and maintenance services. The original agreement included $247,000 for year one of the agreement and $100,000 plus annual consumer price index adjustments annually thereafter.

On August 7, 2019, Council authorized the Town Manager to execute a first amendment to the Agreement for Services to provide for an additional $100,000 for FY 2019/20.

On June 2, 2020, Council authorized the Town Manager to execute a second amendment (Attachment 2) to the Agreement for Services to increase compensation for FY 2019/20 and FY

PAGE 2 OF 2
SUBJECT: Authorize the Town Manager to Execute a Fourth Amendment to the Agreement for Services with Brightview Tree Services, Inc.

DATE: May 26, 2022
BACKGROUND (continued):
2020/21 in amounts of $47,000 and $147,000 respectively for total annual contract amounts not to exceed $247,000.

On May 3, 2022, Council authorized the Town Manager to execute a third amendment (Attachment 2) to the Agreement for Services to increase compensation for FY 2021/22 in an amount of $25,000 for a total annual contract amount not to exceed $125,000. Compensation for years four and five of the agreement were to remain at $100,000 annually.

DISCUSSION:

With the ongoing drought, high winds, and wildfire dangers continuing to affect the Town’s urban forest, work requests for fallen branches, dead tree removals, and defensible space needs continue to be high. These maintenance needs can at times occur simultaneously and not seasonally as expected, as is the case this year. This amendment increases the Brightview Tree Service contract by $30,000 to provide priority and emergency work to continue through the remainder of the fiscal year.

CONCLUSION:

Authorize the Town Manager to execute a fourth amendment to the Agreement for Services with Brightview Tree Care Services, Inc. to increase compensation for FY 2021/22 in an amount of $30,000 for a total annual amount not to exceed $125,000, for a total agreement amount not to exceed $966,000.

FISCAL IMPACT:

The Adopted FY 2021/22 Operating Budget has sufficient funds for tree maintenance. This action will have no additional fiscal impact.

ENVIRONMENTAL ASSESSMENT:

This is not a project defined under CEQA, and no further action is required.

Attachments:

1. Fourth Amendment to the Agreement for Services

2. Original Agreement Including the First, Second, and Third Amendment to Agreement for Services

Brightview Tree Care Services, Inc. – Fourth Amendment to Agreement for Services

FOURTH AMENDMENT TO AGREEMENT
This FOURTH AMENDMENT TO AGREEMENT is dated for identification this 26th day of May 2022 and amends that certain Third Amendment to Agreement for Services dated June 2, 2022, made by and between the Town of Los Gatos, ("Town,") and Brightview Tree Services, Inc. (“Service Provider”).

RECITALS
A. Town and Service Provider entered into a Agreement for Services on June 5, 2018, (“Agreement”), a First Amendment to Agreement for Services on August 20, 2019, a Second Amendment to Agreement for Services on June 2, 2022, a Third Amendment to Agreement for Services on April 18, 2022, copies of which are attached hereto and incorporated by reference as Attachment 1 to this Amendment.

B. Town desires to amend the Agreement for Services to provide additional funds for FY 2021/22.

AMENDMENT

1. 2.6 Compensation – amendment shall read:

Compensation for year 1 (Fiscal Year 2018/19 of this agreement was $247,000.

Compensation for year 2 (Fiscal Year 2019/20) of this agreement was $247,000 and shall be adjusted upward annually for the remaining term of this agreement by the change, if any, in the San Francisco – Oakland – San Jose Metropolitan Area Consumer Price Index for All Urban Consumers, all items (CPI). The adjustment shall be based upon the CPI published on December 31 of the preceding year.

Compensation for year 3 (Fiscal Year 2020/21) of this agreement was $247,000 and shall be adjusted upward annually for the remaining term of this agreement by the change, if any, in the San Francisco – Oakland – San Jose Metropolitan Area Consumer Price Index for All Urban Consumers, all items (CPI). The adjustment shall be based upon the CPI published on December 31 of the preceding year.

Compensation for year 4 (Fiscal Year 2021/22) of this agreement shall increase $30,000, for a total amount not to exceed $155,000 and shall be adjusted upward annually for the remaining term of this agreement by the change, if any, in the San Francisco – Oakland – San Jose Metropolitan Area Consumer Price Index for All Urban Consumers, all items (CPI).

The adjustment shall be based upon the CPI published on December 31 of the preceding year.

ATTACHMENT 1

Brightview Tree Care Services, Inc. – Fourth Amendment to Agreement for Services Compensation for year 5 (Fiscal Year 2022/23) of this agreement shall remain the same:
a total amount not to exceed $100,000 and shall be adjusted upward annually for the remaining term of this agreement by the change, if any, in the San Francisco – Oakland – San Jose Metropolitan Area Consumer Price Index for All Urban Consumers, all items (CPI).

The adjustment shall be based upon the CPI published on December 31 of the preceding year.

The total agreement amount shall not to exceed $996,000.

2. All other terms and conditions of the Agreement remain in full force and effect IN WITNESS WHEREOF, the Town and Consultant have executed this Amendment.

Town of Los Gatos: Approved as to Consent:
_______________________________ ______________________________ Laurel Prevetti, Town Manager Print Name, Title
Department Approval:
_______________________________________
Timm Borden
Interim Director of Parks and Public Works
Approved as to Form: Attest:
______________________________ ______________________________ Gabrielle Whelan, Town Attorney Shelley Neis, MMC, CPMC, Town Clerk

BrightView Tree Care Services Inc. – Third Amendment to Agreement for Services

THIRD AMENDMENT TO AGREEMENT FOR SERVICES
This THIRD AMENDMENT TO AGREEMENT is dated for identification this 18th day of April 2022 and amends that certain Second Amendment to Agreement for Services dated June 2, 2020, made by and between the Town of Los Gatos, ("Town,") and BrightView Tree Care Services Inc. (“Service Provider”).

RECITALS
A. Town and Service Provider entered into an Agreement for Services on June 5, 2018, (“Agreement”), and a First Amendment to Agreement for Services on August 20, 2019, and a Second Amendment to Agreement for Services on June 2, 2020, copies of which are attached hereto and incorporated by reference as Attachment 1 to this Amendment.

B. Town desires to amend the Agreement for Services to provide additional funds for FY 2021/22.

AMENDMENT

1. 2.6 Compensation – amendment shall read:

Compensation for year 1 (Fiscal Year 2018/19) of this agreement was $247,000.

Compensation for year 2 (Fiscal Year 2019/20) of this agreement was $247,000. and shall be adjusted upward annually for the remaining term of this agreement by the change, if any, in the San Francisco – Oakland – San Jose Metropolitan Area Consumer Price Index for All Urban Consumers, all items (CPI). The adjustment shall be based upon the CPI published on December 31 of the preceding year.

Compensation for year 3 (Fiscal Year 2020/21) of this agreement was $247,000, and shall be adjusted upward annually for the remaining term of this agreement by the change, if any, in the San Francisco – Oakland – San Jose Metropolitan Area Consumer Price Index for All Urban Consumers, all items (CPI). The adjustment shall be based upon the CPI published on December 31 of the preceding year.

Compensation for year 4 (Fiscal Year 2021/22) of this agreement shall increase $25,000, for a total amount not to exceed $125,000 and shall be adjusted upward annually for the remaining term of this agreement by the change, if any, in the San Francisco – Oakland – San Jose Metropolitan Area Consumer Price Index for All Urban Consumers, all items (CPI).

The adjustment shall be based upon the CPI published on December 31 of the preceding year. If the CPI indicates a downward adjustment, compensation would remain at the base amount of $100,000.

DocuSign Envelope ID: D538F6DD-9257-4FF2-BB46-5E2A7982A8DC

BrightView Tree Care Services Inc. – Third Amendment to Agreement for Services

Compensation for year 5 (Fiscal Year 2022/23) of this agreement shall remain the same:
a total amount not to exceed $100,000 and shall be adjusted upward annually for the remaining term of this agreement by the change, if any, in the San Francisco – Oakland – San Jose Metropolitan Area Consumer Price Index for All Urban Consumers, all items (CPI).

The adjustment shall be based upon the CPI published on December 31 of the preceding year. If the CPI indicates a downward adjustment, compensation would remain at the base amount of $100,000.

The total agreement amount shall not to exceed $966,000.

2. All other terms and conditions of the Agreement remain in full force and effect.

IN WITNESS WHEREOF, the Town and Service Provider have executed this Amendment.

Town of Los Gatos BrightView Tree Care Services Inc. by:

By: _______________________________ ______________________________ Laurel Prevetti, Town Manager
______________________________
Name/Title
Attest:
______________________________
Department Approval:
_______________________________________
Timm Borden
Interim Director of Parks and Public Works
Approved as to Form:
______________________________
Robert Schultz, Interim Town Attorney Shelley Neis, CMC, Town Clerk DocuSign Envelope ID: D538F6DD-9257-4FF2-BB46-5E2A7982A8DC Michael Black / General Manager
5/16/2022
5/16/2022
5/17/2022
5/17/2022
5/17/2022

BrightView Tree Care Services Inc. – Second Amendment to Agreement for Services

SECOND AMENDMENT TO AGREEMENT FOR SERVICES
This SECOND AMENDMENT TO AGREEMENT is dated for identification this 2ND day of June 2020 and amends that certain First Amendment to Agreement for Services dated August 20, 2019, made by and between the Town of Los Gatos, ("Town,") and BrightView Tree Care Services Inc. (“Service Provider”).

RECITALS
A. Town and Service Provider entered into an Agreement for Services on June 5, 2018, (“Agreement”), and a First Amendment to Agreement for Services on August 20, 2019, copies of which are attached hereto and incorporated by reference as Attachment 1 to this Amendment.

B. Town desires to amend the Agreement for Services to provide additional funds for FY 2019/20 and 2020/21.

AMENDMENT

1. 2.6 Compensation – amendment shall read:

Compensation for year 1 (Fiscal Year 2018/19) of this agreement was $247,000.

Compensation for year 2 (Fiscal Year 2019/20) of this agreement shall increase $47,000, for a total annual amount not exceed $247,000 and shall be adjusted upward annually for the remaining term of this agreement by the change, if any, in the San Francisco – Oakland – San Jose Metropolitan Area Consumer Price Index for All Urban Consumers, all items (CPI). The adjustment shall be based upon the CPI published on December 31 of the preceding year.

Compensation for year 3 (Fiscal Year 2020/21) of this agreement shall increase $147,000, for a total annual amount not exceed $247,000 and shall be adjusted upward annually for the remaining term of this agreement by the change, if any, in the San Francisco – Oakland – San Jose Metropolitan Area Consumer Price Index for All Urban Consumers, all items (CPI). The adjustment shall be based upon the CPI published on December 31 of the preceding year.

Compensation for years 4 and 5 (Fiscal Years 2021/22 and 2022/23) of this agreement shall not exceed $100,000 and shall be adjusted upward annually for the remaining term of this agreement by the change, if any, in the San Francisco – Oakland – San Jose Metropolitan Area Consumer Price Index for All Urban Consumers, all items (CPI). The adjustment shall be based upon the CPI published on December 31 of the preceding year.

DocuSign Envelope ID: C01F6C1B-521B-4630-B3FA-8EFFD2AE3C42 DocuSign Envelope ID: D538F6DD-9257-4FF2-BB46-5E2A7982A8DC

BrightView Tree Care Services Inc. – Second Amendment to Agreement for Services

If the CPI indicates a downward adjustment, compensation would remain at the base amount of $100,000.

The total agreement amount shall not to exceed $941,000.

2. All other terms and conditions of the Agreement remain in full force and effect.

IN WITNESS WHEREOF, the Town and Service Provider have executed this Amendment.

Town of Los Gatos BrightView Tree Care Services Inc. by:

By: _______________________________ ______________________________ Laurel Prevetti, Town Manager
______________________________
Department Approval: Name/Title
_______________________________________
Matt Morley
Director of Parks and Public Works
Approved as to Form: Attest:
______________________________ ______________________________ Robert Schultz, Town Attorney Shelley Neis, CMC, Town Clerk DocuSign Envelope ID: C01F6C1B-521B-4630-B3FA-8EFFD2AE3C42 General Manager
6/18/2020
6/22/2020
6/22/2020
6/22/2020
DocuSign Envelope ID: D538F6DD-9257-4FF2-BB46-5E2A7982A8DC

AGR lq• 150
IHH

FIRST AMENDMENT TO AGREEMENT FOR SERVICES
This FIRST AMENDMENT TO AGREEMENT is dated for identification this 20' t' day of August 2019 and amends that certain Agreement for Services dated June 5, 2018, made by and between the Town of Los Gatos, (" Town,") and BrightView Tree Care Services Inc. (" Service Provider").

RECITALS
A. Town and Service Provider entered into an Agreement for Services on June 5, 2018, Agreement"), a copy of which is attached hereto and incorporated by reference as Attachment 1 to this Amendment.

B. Town desires to amend the Agreement for Services to provide additional funds for FY 2019/ 20.

AMENDMENT

1. 2. 6 Compensation shall read: Compensation for the first year shall not exceed $ 247, 000, inclusive of all costs. Payment shall be based upon Town approval of each task.

Compensation for year two of this agreement shall not exceed $ 200, 000 and shall be adjusted upward annually for the remaining term of this agreement by the change, if any, in the San Francisco — Oakland — San Jose Metropolitan Area Consumer Price Index for All Urban Consumers, all items (CPI). The adjustment shall be based upon the CPI published on December 31 of the preceding year.

Compensation for years three through five of this agreement shall not exceed $ 100, 000 annually and shall be adjusted upward annually for the remaining term of this agreement by the change, if any, in the San Francisco — Oakland — San Jose Metropolitan Area Consumer Price Index for All Urban Consumers, all items ( CPI). The adjustment shall be based upon the CPI published on December 31 of the preceding year. If the CPI indicates a downward adjustment, compensation would remain at the base amount of $100, 000.

2. All other terms and conditions of the Agreement remain in full force and effect.

DocuSign Envelope ID: D538F6DD-9257-4FF2-BB46-5E2A7982A8DC

IN WITNESS WHEREOF, the Town and Service Provider have executed this Amendment.

Town of Los Gatos
BY._/
laurel Prevetti, Town Manager
Department Approval:
0 Mat Morley
Director of Parks and Pu lic W rks
Approved as to Form:

Robert Sc u z, Town Attorney
2of2
BrightView Tree Care Services Inc. —First Amendment to Agreement for Services BrightViewTree Care Services Inc. by:

Name/ Title
Attest:

Shelley Neis, CIVIC, To Jerk,
DocuSign Envelope ID: D538F6DD-9257-4FF2-BB46-5E2A7982A8DC

AGR_lS IY,:j_
AGREEMENT FOR SERVICES IHH ____ _
THIS AGREEMENT is dated for identification this 5th of June 2018 and is made by and between TOWN OF LOS GATOS, a California municipal corporation, ("Town") and BrightView Tree Care Services, ("Service Provider"), whose address is 530 Aldo Avenue, San Jose, CA 95054. This Agreement is made with reference to the following facts.

I. RECITALS

1.1 The Town desires to engage Service Provider to provide tree trimming maintenance services.

1.2 The Service Provider represents and affirms that it is willing to perform the desired work pursuant to this Agreement.

1.3 Service Provider warrants it possesses the distinct professional skills, qualifications, experience, and resources necessary to timely perform the services described in this Agreement. Service Provider acknowledges Town has relied upon these warranties to retain Service Provider.

2.1 2.2

2.3 2.4

2.5 It. AGREEMENT
Scope of Services. Service Provider shall provide services as described in that certain Proposal sent to the Town on April 25, 2018, which is hereby incorporated by reference and attached as Exhibit A.

Term and Time of Performance. The effective date of this Agreement shall begin on July 1, 2018 and will continue through June 30, 2023, subject to appropriation of funds, notwithstanding any other provision in this agreement.

Compliance with Laws. The Service Provider shall comply with all applicable laws, codes, ordinances, and regulations of governing federal, state and local laws. Service Provider represents and warrants to Town that it has all licenses, permits, qualifications and approvals of whatsoever nature which are legally required for Service Provider to practice its profession. Service Provider shall maintain a Town of Los Gatos business license pursuant to Chapter 14 of the Code of the Town oflos Gatos.

Sole Responsibility. Service Provider shall be responsible for employing or engaging all persons necessary to perform the services under this Agreement.

Information/Report Handling. All documents furnished to Service Provider by the Town and all reports and supportive data prepared by the Service Provider under this Agreement are the Town's property and shall be delivered to the Town upon the completion of services or Agreement for Services - BrightView Tree Care Services

DocuSign Envelope ID: D538F6DD-9257-4FF2-BB46-5E2A7982A8DC

at the Town' s written request. All reports, information, data, and exhibits prepared or assembled by Service Provider in connection with the performance of its services pursuant to this Agreement are confidential until released by the Town to the public, and the Service Provider shall not make any of these documents or information available to any individual or organization not employed by the Service Provider or the Town without the written consent of the Town before such release. The Town acknowledges that the reports to be prepared by the Service Provider pursuant to this Agreement are for the purpose of evaluating a defined project, and Town' s use of the information contained in the reports prepared by the Service Provider in connection with other projects shall be solely at Town' s risk, unless Service Provider expressly consents to such use in writing. Town further agrees that it will not appropriate any methodology or technique of Service Provider which is and has been confirmed in writing by Service Provider to be a trade secret of Service Provider.

2. 6 Compensation. Compensation for services shall not exceed $ 247, 000 for the first year, inclusive of all costs. Payment shall be based upon Town approval of each t k.

Compensation for years two through five of this agreement shall not exceed $100,000 and shall be adjusted upward annually for the remaining term of this agreement by the change, if any, in the San Francisco — Oakland — San Jose Metropolitan Area Consumer Price Index for All Urban Consumers, all items ( CPI). The adjustment shall be based upon the CPI published on December 31 of the preceding year. If the CPI indicates a downward adjustment, compensation would remain at the base amount of $ 100, 000.

2. 7 Failure to Perform. It is mutually agreed by SERVICE PROVIDER and TOWN that in the event that performance of the work by SERVICE PROVIDER under this Agreement is not completed as scheduled, TOWN will suffer damages and will incur other costs and expenses of a nature and amount which is difficult or impractical to determine. The Parties agree that by way of ascertaining and fixing the amount of damages, costs and expenses, and not by way of penalty, SERVICE PROVIDER shall pay to TOWN the sum of one hundred dollars ($ 100. 00) per location per scheduled service in liquidated damages for every missed service beyond three missed services in a month in addition to reducing the monthly payment by the cost of that service. In the event that the liquidated damages are not paid, SERVICE PROVIDER agrees that TOWN may deduct the amount of unpaid damages from any money due or that may become due to SERVICE PROVIDER under this Agreement.

2. 8 Schedule. Service Provider shall provide a schedule to the Town prior to beginning work.

The schedule shall identify dates of service for each location. Schedule changes shall be approved by the Town with 24- hour notice. Each missed location shall be considered a failure to perform, unless the contractor provides advance notice of schedule change.

2. 9 Billin¢. Billing shall be monthly by invoice within thirty ( 30) days of the rendering of the service and shall be accompanied by a detailed explanation of the work performed by whom at what rate and on what date. Also, plans, specifications, documents or other pertinent materials shall be submitted for Town review, even if only in partial or draft form.

Agreement for Services — BrightView Tree Care Services
DocuSign Envelope ID: D538F6DD-9257-4FF2-BB46-5E2A7982A8DC

Payment shall be net thirty ( 30) days. All invoices and statements to the Town shall be addressed as follows:

Invoices:

Town of Los Gatos
Attn: Accounts Payable
P. O. Box 655
Los Gatos, CA 95031- 0655

2. 10 Availability of Records. Service Provider shall maintain the records supporting this billing for not less than three years following completion of the work under this Agreement. Service Provider shall make these records available to authorized personnel of the Town at the Service Provider offices during business hours upon written request of the Town.

2. 11 Assignability and Subcontracting. The services to be performed under this Agreement are unique and personal to the Service Provider. No portion of these services shall be assigned or subcontracted without the written consent of the Town.

2. 12 Independent Service Provider. it is understood that the Service Provider, in the performance of the work and services agreed to be performed, shall act as and be an independent Service Provider and not an agent or employee of the Town. As an independent Service Provider, he/ she shall not obtain any rights to retirement benefits or other benefits which accrue to Town employee( s). With prior written consent, the Service Provider may perform some obligations under this Agreement by subcontracting but may not delegate ultimate responsibility for performance or assign or transfer interests under this Agreement. Service Provider agrees to testify in any litigation brought regarding the subject of the work to be performed under this Agreement. Service Provider shall be compensated for its costs and expenses in preparing for, traveling to, and testifying in such matters at its then current hourly rates of compensation, unless such litigation is brought by Service Provider or is based on allegations of Service Provider' s negligent performance or wrongdoing.

2. 13 Conflict of Interest. Service Provider understands that its professional responsibilities are solely to the Town. The Service Provider has and shall not obtain any holding or interest within the Town of Los Gatos. Service Provider has no business holdings or agreements with any individual member of the Staff or management of the Town or its representatives nor shall it enter into any such holdings or agreements. In addition, Service Provider warrants that it does not presently and shall not acquire any direct or indirect interest adverse to those of the Town in the subject of this Agreement, and it shall immediately disassociate itself from such an interest, should it discover it has done so and shall, at the Town' s sole discretion, divest itself of such interest. Service Provider shall not knowingly and shall take reasonable steps to ensure that it does not employ a person having such an interest in this performance of this Agreement. If after employment of a person Service Provider discovers it has employed a person with a direct or indirect interest that would conflict with its performance of this Agreement Service Provider shall promptly notify Town of this Agreement for Service$ - Brightyiew Tree Care Services

DocuSign Envelope ID: D538F6DD-9257-4FF2-BB46-5E2A7982A8DC

employment relationship, and shall, at the Town' s sole discretion, sever any such employment relationship.

2. 14 Equal Employment Opportunity. Service Provider warrants that it is an equal opportunity employer and shall comply with applicable regulations governing equal employment opportunity. Neither Service Provider nor its subService Providers do and neither shall discriminate against persons employed or seeking employment with them on the basis of age, sex, color, race, marital status, sexual orientation, ancestry, physical or mental disability, national origin, religion, or medical condition, unless based upon a bona fide occupational qualification pursuant to the California Fair Employment & Housing Act.

Ill. INSURANCE AND INDEMNIFICATION

3. 1 Minimum Scope of Insurance:

Service Provider agrees to have and maintain, for the duration of the contract, General Liability insurance policies insuring him/ her and his/ her firm to an amount not less than: one million dollars ($ 1, 000, 000) combined single limit per occurrence for bodily injury, personal injury and property damage.
ii. Service Provider agrees to have and maintain for the duration of the contract, an Automobile Liability insurance policy ensuring him/ her and his/ her staff to an amount not less than one million dollars ($ 1, 000, 000) combined single limit per accident for bodily injury and property damage. iii. Service Provider shall provide to the Town all certificates of insurance, with original endorsements effecting coverage. Service Provider agrees that all certificates and endorsements are to be received and approved by the Town before work commences.

General Liability:

The Town, its officers, officials, employees and volunteers are to be covered as insured as respects: liability arising out of activities performed by or on behalf ofthe Service Provider; products and completed operations of Service Provider, premises owned or used by the Service Provider. ii. The Service Provider' s insurance coverage shall be primary insurance as respects the Town, its officers, officials, employees and volunteers. Any insurance or self -insurances maintained by the Town, its officers, officials, employees or volunteers shall be excess of the Service Provider' s insurance and shall not contribute with it.

Agreement for Services — 8rightView Tree Care Services
DocuSign Envelope ID: D538F6DD-9257-4FF2-BB46-5E2A7982A8DC

iii. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to the Town, its officers, officials, employees or volunteers.
iv. The Service Provider' s insurance shall apply separately to each insured against whom a claim is made, or suit is brought, except with respect to the limits of the insurer' s liability.

3. 2 All Coverages. Each insurance policy required in this item shall be endorsed to state that coverage shall not be suspended, voided, cancelled, reduced in coverage or in limits except after thirty ( 30) days' prior written notice by certified mail, return receipt requested, has been given to the Town. Current certification of such insurance shall be kept on file at all times during the term ofthis agreement with the Town Clerk.

3. 3 Workers' Compensation. In addition to these policies, Service Provider shall have and maintain Workers' Compensation insurance as required by California law and shall provide evidence of such policy to the Town before beginning services under this Agreement.

Further, Service Provider shall ensure that all subService Providers employed by Service Provider provide the required Workers' Compensation insurance for their respective employees.

3. 4
Indemnification. The Service Provider shall save, keep, hold harmless and indemnify and defend the Town its officers, agent, employees and volunteers from all damages, liabilities, penalties, costs, or expenses in law or equity that may at any time arise or be set up because of damages to property or personal injury received by reason of, or in the course of performing work which may be occasioned by a willful or negligent act or omissions of the Service Provider, or any of the Service Provider' s officers, employees, or agents or any subService Provider.

IV. GENERALTERMS

4. 1 Waiver. No failure on the part of either party to exercise any right or remedy hereunder shall operate as a waiver of any other right or remedy that party may have hereunder, nor does waiver of a breach or default under this Agreement constitute a continuing waiver of a subsequent breach of the same or any other provision of this Agreement.

4. 2 Governing Law. This Agreement, regardless of where executed, shall be governed by and construed to the laws of the State of California. Venue for any action regarding this Agreement shall be in the Superior Court of the County of Santa Clara.

4. 3 Termination of Agreement. The Town and the Service Provider shall have the right to terminate this agreement with or without cause by giving not less than fifteen days ( 15) written notice of termination. In the event of termination, the Service Provider shall deliver to the Town all plans, files, documents, reports, performed to date by the Service Provider.

In the event of such termination, Town shall pay Service Provider an amount that bears the

Agreement for Services- 6rigfrtView Tree Carp Services
DocuSign Envelope ID: D538F6DD-9257-4FF2-BB46-5E2A7982A8DC

same ratio to the maximum contract price as the work delivered to the Town bears to completed services contemplated under this Agreement, unless such termination is made for cause, in which event, compensation, if any, shall be adjusted in light of the particular facts and circumstances involved in such termination.

4.4 Amendment. No modification, waiver, mutual termination, or amendment of this Agreement is effective unless made in writing and signed by the Town and the Service Provider.

4. 5 Disputes. In any dispute over any aspect of this Agreement, the prevailing party shall be entitled to reasonable attorney' s fees, including costs of appeal.

4. 6 Prevailing Wages. In accordance with the provisions of Sections 1770 et sea., of the Labor Code, the Director of the Industrial Relations of the State of California has determined the general prevailing rate of wages applicable to the work to be done. Service Provider will be required to pay to all persons employed on the project by the Service Provider sums not less than the sums set forth in the documents entitled " General Prevailing Wage Determination made by the Director of Industrial Relations pursuant to California Labor Code, part 7, Chapter 1, Article 2, Sections 1770, 1773, 1773. 1." These documents may be obtained from the State of California.

Pursuant to Labor Code section 1725. 5, no Service Provider or sub5ervice Provider may be awarded a contract for public works on a public works project unless registered with the Department of Industrial Relations.

This project is subject to compliance monitoring and enforcement by the Department of Industrial Relations and/ or the Town of Los Gatos.

The Service Provider is required to post notices on Public Works requirements.

4. 7 Notices. Any notice required to be given shall be deemed to be duly and properly given if mailed postage prepaid, and addressed to:

Town of Los Gatos BrightView Tree Care Services
Attn: Town Clerk 530 Aldo Avenue
110 E. Main Street San Jose, CA 95054
Los Gatos, CA 95030
or personally delivered to Service Provider to such address or such other address as Service Provider designates in writing to Town.

4. 8 Order of Precedence. In the event of any conflict, contradiction, or ambiguity between the terms and conditions of this Agreement in respect of the Products or Services and any

Agreement for 5ewrces— BrightView Tree Care Services
DocuSign Envelope ID: D538F6DD-9257-4FF2-BB46-5E2A7982A8DC

attachments to this Agreement, then the terms and conditions of this Agreement shall prevail over attachments or other writings.

4. 9 Entire Agreement. This Agreement, including all Exhibits, constitutes the complete and exclusive statement of the Agreement between the Town and Service Provider. No terms, conditions, understandings or agreements purporting to modify or vary this Agreement, unless hereafter made in writing and signed by the party to be bound, shall be binding on either party.

Agreement For Services — Bright View Tree Care Services DocuSign Envelope ID: D538F6DD-9257-4FF2-BB46-5E2A7982A8DC

IN WITNESS WHEREOF, the Town and Service Provider have executed this Agreement.

Town of Los Gatos by:

Laurel Prevetti, Town Manager
Recommended by:
tt Morley, Director of Parks and Public
Works
Approved as to Form:

W 5-QQ
Robert Schultz, Town tto ey
Agreemem for Services — BrightView Tree Care Services
Bri View Tree Care Services, Inc. by:

Mike Carter
Vice President J General Manager
Title
Page g of e
DocuSign Envelope ID: D538F6DD-9257-4FF2-BB46-5E2A7982A8DC

ATTACHMENT D

BID PRICE SHEET
For all services described below, unless excluded by the Town in description of services below, the Town shall consider unit prices below to include all labor, equipment, fees of any kind, overhead, insurance, fuel, materials, surcharges, disposal fees, and any other casts associated with and necessary for the Bidder to perform such service - No qualifications, exemptions, or alterations of services described below will be allowed. Failure to comply will result in disqualification of bid.

A. GENERAL SERVICES

DESCRIPTION, WPFH UNIT UNIT ESTIMATED EXTENDED PRICE
PRICE IN WORDS. (PRICE PRICE UNITS

IS INCLUSIVE OF ALL

APPLICABLE TAXES AND
FEES
Annual routine it -.inn b.based
on n: trimming in pre -designed
I districts. Inds or parks on a so Per -tree 7" H 595 eam S 66, 500. 00 cycle, and includes all trees
mall, medium, and lar e- sized .

Service request tree trimming
consist of trimming trees outside
the grid trimming cycle,

2. o- 6`
Per tree 3 @rnsem S 216
7-.. 12- Per tree 10 @Safi exn 950
13" - Is" Per tree 10 0It" own 1. 450
19 -.. 24' Per tree 20 @fl90 exi, S 4, 700
2i and o, er Per tree 10 0 210 each 2,850
Tree removal ( excludes stump
removal)
3 0' - 6" Per tree 5 a $95 earn S 475
7-- 12 - Per tree 15 ® $ 237 each S 3. 555
13- 18 Per tree 20 RS522 earn S10.440
17 - 24 Per tree 10 0 $760 earn S 7. 800
25" and over
5 ® 51, 920 each 9.6m
Stump removal

0.,- 6. Per stump 5 a$57 earn 285
4 7-- 12" Per stump 15 @ $ 114 each S 1. 710
1 t" - 18' Per stump 20 R $171 each 3.420
10-_ 24" Per stump 10 0$228 each S 2, 280
25' and over Per stump 5 osmzeach S 1. 710
A

SUB- TOTAL- G ENERAL
11774a 00 SERVICES Px 1eor, u EXHIBIT
A
DocuSign Envelope ID: D538F6DD-9257-4FF2-BB46-5E2A7982A8DC

R _ CREW RENTAL AND EMERGENCY SERVICES
Fully equipped crew as defined. Includes
all labor, equipment, tool, traflk control,
dis osal cosh and aero material marku 1
UNIT
PRICE

ESTIMATED EXTENDED

UNITS PRICE

STRAIGHTTIME
I. 4 Man crew with Equipment Per hour 20 Qi300 S6, 000
2, 3 Man crew with Equipm ni Per hour 40 nR $ 225 9.000

3. 2 Man crew with Equipment Per hour 20 Q 8150 3.000

OV ERTIME/ WEEKENDSIEMERG ENCY

AFTER HOURS CALL OUT

4. 4 Man clew with Equipment Per hour 10 @ $ 350 51800

5. 3 Man crew with Equipment Per hour 10 @ $ 285 2. 850

6. 2 Man crew with Equipment Per hour 20 ® 5190 3, 800
B.

SUB -TOTAL - CREW RENTAL&
EMERGENCY SERVICES 528, 450. Q0
C. OTHER COSTS

DESCRIPTION, WITH UNIT UNIT ESTIMATED EXTENDED PRICE
PRICE IN WORDS. ( PRICE IS PRICE UNITS

INCLUSIVE OF ALL

APPLICABLE TAXES AND
FEES) _
Cost for crown, trees requiring
trimming more than 25ea of
foliage at one nme, or crown
shaping or crown reduction.
l'
041- Per free 3 OS' l2. am S 216
7- 12' Per tree looms S 950
13- 18' Per tree to 06145. arrn S 1, 450
19- 24-' Per tree 10 81m.. tl, S 2, 350
25" and over Per tree 21) 111 S 5, 700
Specialty equipment - 50- ton Per hour 5 05205 each S 1, 325 2- crane per hour Per hour 15 44 S250 win S 3. 750
95- font anal tower per hour
Tice planting and msiillation
services'.

Price includes labor, equipment,
root irrigation device, and
staking; assume trees to be
3, provides by the Town)
Per tree 40 mu3o.« h S 5.200 IS"' gallon Per tree 20 R snow, S 5. 2M 24.. bu Per tree 10 as3sci S 3,aca

16.. box
Per tree 5 gitriorxn S 3, 150
48 box
4 Arbnrist service, & report
Per hour 10 @ 9120 raen S 1200. writmgper hour
Tree watering per day---_

5. Assume I worker watering 8 Per day 40 @ $ 600 oath S 24. 000 hour!----_.-
GPS tree inventory data
6 Per3ree 14000613e. r1,, S42. 000 collection site
SUB - TOTAL - OTHER COST- S 100 491, 00 Fl GRANDTOTAL A* B* C S24666200 P., 11 dll

EXHIBIT A
DocuSign Envelope ID: D538F6DD-9257-4FF2-BB46-5E2A7982A8DC

PREPARED BY: Salina Flores
Human Resources Director
Reviewed by: Town Manager, Assistant 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: 06/07/2022
ITEM NO: 19
DATE: June 2, 2022
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Approve a Labor Agreement Between the Town of Los Gatos and the Police Officers’ Association and Authorize the Town Manager to Execute the Memorandum of Understanding
RECOMMENDATION:

Staff recommends that the Town Council approve a Labor Agreement Between the Town of Los Gatos and the Police Officers’ Association (POA) and authorize the Town Manager to execute the Memorandum of Understanding (Attachment 1).

BACKGROUND:

In accordance with the Town’s Employer-Employee Relations Resolution No. 1974-41, representatives of the Town and POA have met and conferred in good faith and within the scope of representation in an effort to reach agreement for a successor Memorandum of Understanding (MOU). The revised agreement will be distributed and posted on June 3, 2022 as an Addendum. The MOU is a labor agreement that identifies specific terms and conditions of employment applicable to the employees represented by that agreement.

DISCUSSION:

The Town’s current agreement with POA expired on September 30, 2021. On June 11, 2021, the Town and POA began negotiating for a successor agreement. A tentative agreement for a three-year term was reached in May which POA membership ratified on May 11, 2022.

Major provisions of the agreement are:

1. Term: October 1, 2021 to June 30, 2024

PAGE 2 OF 3
SUBJECT: Approve a Labor Agreement Between the Town of Los Gatos and the Police Officers’ Association and Authorize the Town Manager to Execute the Memorandum of Understanding
DATE: June2, 2022
DISCUSSION (continued):

2. Salary:
a. Effective the first full pay period of July 2022 or the first full pay period after Council approval of the MOU, whichever is later, all employees shall receive a one-time non-pensionable lump sum payment of $5,000.
b. Effective the first full pay period after Council approval of this MOU, or as soon as practical thereafter, the salary rate for all classifications shall be increased by 2% (effective June 12, 2022) (Attachment 1).
c. Effective the first full pay period in July 2022 (effective July 10, 2022), the salary rate for all classifications shall be increased by 5.25% (Attachment 2). d. The parties agree that the combined 2022 increases represent a 3% cost of living adjustment, a market increase of 3.15% and an additional 1.1% to address the passage of time since October 2021.
e. Effective in the first full pay period of July 2023, the Town will provide a 3% cost of living increase.

3. Pandemic Related Bonus: Effective the first full pay period of July 2022, or the first full pay period after Council approval, whichever is later, all employees who worked for the Town in 2021, who are employed at the Town as of the last day of the pay period will receive a one-time, lump sum payment of $2,500.

4. Juneteenth Holiday: Effective the first pay period of July 2022 or the first pay period after Council approval of the MOU, whichever is later, in recognition of Juneteenth, holiday in lieu pay will be increased by 0.4%. to total 4.4%. Effective the first pay period of July 2022 or the first pay period after Council approval of the MOU, whichever is later, employees will receive a one-time non-pensionable lump sum payment of $1,000.00 for foregoing the Juneteenth holiday prior to 2023.

The Town and POA have also agreed to various MOU language updates. The red-lined MOU will be distributed and posted on Friday, June 3, 2022 as an Addendum. These updates clarify existing language, delete obsolete language, and ensure compliance related to the Town’s contract for retirement and medical benefits provided under the California Public Employees’ Retirement System (CalPERS) and the Public Employees’ Medical and Hospital Care Act (PEMHCA).

CONCLUSION:

The POA agreement has been prepared within the parameters provided to Town’s negotiators by the Town Council and has been ratified by the POA membership. It is recommended that the proposal be approved, and the Town Manager be authorized to execute the MOU.

PAGE 3 OF 3
SUBJECT: Approve a Labor Agreement Between the Town of Los Gatos and the Police Officers’ Association and Authorize the Town Manager to Execute the Memorandum of Understanding
DATE: June2, 2022
FISCAL IMPACT:

The anticipated FY 2022/23 impact for the 3.00% COLA ($252,000), 3.15% market rate adjustment ($265,000), and the 1.1% COLA ($85,000) for a total 7.25% salary increase is $602,000. The anticipated fiscal impact of a $1,000 non-pensionable one-time payment, the one-time, lump sum pandemic related bonus payment of $2,500, and the $5,000 nonpensionable FY 2021/22 make whole payment in FY 2022/23 is $289,000.

The total cost impact for FY 2022/23 will be absorbed in the Town’s existing operating budget.

Funding to support the FY 2023/24 ongoing cost each year will be incorporated into the proposed future year budgets for Council approval
ENVIRONMENTAL ASSESSMENT:

This is not a project defined under CEQA, and no further action is required.

Attachments:

1. Salary Schedule for POA effective June 12, 2022

2. Salary Schedule for POA effective July 10, 2022

Class Code Classification Title Range Step Hourly Rate
2520 Police Sergeant (Prior) 04-0721 1 $66.43
Appointment before 03/01/2015 2 $69.75
3 $73.24
4 $76.90
5 $80.75
Class Code Classification Title Range Step Hourly Rate
2521 Police Sergeant (New) 05-0721 1 $66.43
Appointment after 03/01/2015 2 $69.75
3 $73.24
4 $76.90
Class Code Classification Title Range Step Hourly Rate
7500 Police Corporal 03-0715 1 $55.12
2 $57.88
3 $60.77
4 $63.81
5 $67.00
Class Code Classification Title Range Step Hourly Rate
7510 Police Officer 02-0711 1 $52.50
2 $55.13
3 $57.89
4 $60.78
5 $63.82
Class Code Classification Title Range Step Hourly Rate
9519 Police Trainee * 01-0710 1 $49.88
* 95% of Step 1 of Police Officer Classification (Provisional Employee with Misc PERS) Reflects General Increase of 2%.

Town of Los Gatos POA Classifications
Salary Schedule for Fiscal Year 2021/22
Effective June 12, 2022
Adopted by Town Council June 7, 2022
POA 2% 1 Approved 6/7/2022
ATTACHMENT 1

Class Code Classification Title Range Step Hourly Rate
2520 Police Sergeant (Prior) 04-0721 1 $69.92
Appointment before 03/01/2015 2 $73.42
3 $77.09
4 $80.94
5 $84.99
Class Code Classification Title Range Step Hourly Rate
2521 Police Sergeant (New) 05-0721 1 $69.92
Appointment after 03/01/2015 2 $73.42
3 $77.09
4 $80.94
Class Code Classification Title Range Step Hourly Rate
7500 Police Corporal 03-0715 1 $58.01
2 $60.91
3 $63.96
4 $67.16
5 $70.52
Class Code Classification Title Range Step Hourly Rate
7510 Police Officer 02-0711 1 $55.26
2 $58.02
3 $60.92
4 $63.97
5 $67.17
Class Code Classification Title Range Step Hourly Rate
9519 Police Trainee * 01-0710 1 $52.50
* 95% of Step 1 of Police Officer Classification (Provisional Employee with Misc PERS) Reflects General Increase of 5.25%.

Town of Los Gatos POA Classifications
Salary Schedule for Fiscal Year 2022/23
Effective July 10, 2022
Adopted by Town Council June 7, 2022
POA 5.25% 1 Approved 6/7/2022
ATTACHMENT 2

Reviewed by: Town Manager, Assistant 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: 06/07/2022
ITEM NO: 19

ADDENDUM
DATE: June 3, 2022
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Approve a Labor Agreement Between the Town of Los Gatos and the Police Officers’ Association and Authorize the Town Manager to Execute the Memorandum of Understanding
REMARKS:

This Addendum transmits the draft Memorandum of Understanding (see Attachment 3).

Attachments Distributed with Staff Report:

1. Salary Schedule for POA effective June 12, 2022

2. Salary Schedule for POA effective July 10, 2022
Attachment Distributed with this Addendum:

3. Draft Memorandum of Understanding

10096528.1 LO007-005 -6/2/22

TOWN OF LOS GATOS
AND
LOS GATOS POLICE OFFICERS’ ASSOCIATION

MEMORANDUM OF UNDERSTANDING
October 1, 202118 – September June 30, 20241

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MEMORANDUM OF UNDERSTANDING

BETWEEN

THE TOWN OF LOS GATOS
AND

THE LOS GATOS POLICE OFFICERS ASSOCIATION
THIS AGREEMENT IS ENTERED INTO AS OF October 1, 202118, BETWEEN THE TOWN OF LOS GATOS, HEREINAFTER REFERRED TO AS THE "TOWN", AND THE LOS GATOS POLICE OFFICERS ASSOCIATION, HEREINAFTER REFERRED TO AS "POA".

Pursuant to Town Resolution 1974-41 of the Town of Los Gatos and Section 3500 et. seq. of the Government Code, the duly authorized representatives of the Town and POA, having met and conferred in good faith concerning the issues of wages, hours, and terms and conditions of employment, as herein set forth, declare their agreement to the provisions of this Memorandum of Understanding.

FOR THE TOWN: FOR POA:

Laurel Prevetti, Town Manager
______________________________________
Bill HoytBryan Paul, PresidentPolice Corporal
Arn Andrews, Assistant Town Manager
______________________________________
Lisa VelascoSalina Flores, Human Resources
Director
______________________________________
Donna WilliamsonLisa S. Charbonneau,
Liebert Cassidy Whitmore
Kevin Elliott, Police Sergeant
______________________________________
Kevin Baughn, Police Officer
______________________________________
John Alldredge, Police Officer
APPROVED AS TO FORM:
______________________________________
Robert SchultzGabrielle Whelan
Town Attorney
______________________________________
Peter Hoffmann, Rains Lucia Stern St. Phalle
Silver, PCAttorney for POA

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Preamble ..................................................................................................... 1 Term ..................................................................................................... 1

1. Employer-Employee Relations............................................................... 1

2. Savings Clause........................................................................................ 1

3. Payroll Deduction .................................................................................. 1

4. Non-Discrimination................................................................................ 2

4.1 General Provisions Regarding Americans with Disabilities Act ... 2

5. Salary ..................................................................................................... 2

5.1 Intent............................................................................................ 2

5.2 Effective 2018 Upon Approval..................................................... 2

5.3 Effective 20192022 ....................................................................32

5.4 Effective 20202023 ..................................................................322

5.5 Market EquitySalary Range........................................................22

5.65 Salary RangeOne-Time Lump Sum...........................................322

5.76 Pandemic Related Bonus............................................................. 3

6. PERS Benefits......................................................................................... 3

6.1 Town Contribution....................................................................... 3

6.12 PERS 3% At 50 Retirement Option Classic Members.................43

6.23 PERS 2.7% at 57 Retirement Option New Members .................43

7. Education Incentive Pay ......................................................................43

7.1 Four-year Degree Incentive .......................................................43

7.2 Grandfather ClauseTwo-year Degree Incentive Pay.................... 4

7.3 Commencement of Educational Incentive Pay .........................54

7.4 Re-Opener..................................................................................54

8. POST Certification Pay ……………………………………………………………………… 54

9. Special Pays..........................................................................................54

9.1 Special Assignment Pay..............................................................54

9.2 Bilingual Pay...............................................................................65

9.3 Canine Pay..................................................................................65

9.4 FTO Training Premium ...............................................................76

9.5 Trailing Canine Pay ....................................................................76

9.6 Posting for Special Assignments………………………………………………..7

10. Acting Sergeant Pay.............................................................................86

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11. Reimbursement of Expenses...............................................................86

12. Tuition Reimbursement.......................................................................86

13. Health and Welfare Benefits and Rate of Town Contribution.............86

13.1 Cafeteria Plan.............................................................................86

13.2 Dental.........................................................................................87

13.3 Medical ......................................................................................97

13.4 Vision..........................................................................................97

13.5 Cash-In-Lieu Plan........................................................................97

13.6 Supplemental Health and Welfare Benefits..............................98

14. Retiree Health....................................................................................108

14.1 Health Reimbursement AccountRetiree Health Benefit for Eligible Retirees Hired On or Before October 1, 2018…………………………………………………………….108

14.2 Retiree Health Benefit for Eligible Retirees Hired After October 1, 2018…………………………………………………………………………………………..11

15. Uniforms............................................................................................129

16. Mileage Reimbursement ...................................................................129

17. Payroll Periods...................................................................................129

18. Paychecks...........................................................................................129

19. Deferred Compensation ....................................................................120

20. Overtime..........................................................................................1210

21. Duty Extension.................................................................................1310

22. Call Back...........................................................................................1310

23. Vacation Schedule ...........................................................................1311

23.1 Vacation and Overtime Cash-Out .......................................................11

24. Vacation and Overtime Compensatory Time Off Cash-Out………………..14

23.25. Shift and Vacation Selection Procedures...............................1411

24.26. Holidays and Holiday Pay.......................................................1411

25.27. Personal Leave .......................................................................1512

26.28. Sick Leave...............................................................................1512

27.29. Sick Leave Cash-Out Program................................................1512 298.1 Annual Sick Leave Cash-Out for Employees Hired Prior to October 1, 2018 152 298.2 Sick Leave Cash-Out Upon Termination for Employees Hired Prior to October 1, 2018 152 298.3 Unused Sick Leave Upon Retirement.....................................1613

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28.30. Military Leave.........................................................................1613

29.31. Bereavement/Compassion Leave ..........................................1613

30.32. Leave Without Pay .................................................................1613

31.33. Accrual of Benefits...................................................................174

32.34. Workers’ Compensation ..........................................................174

33.35. Jury Duty ..................................................................................174

34.36. Outside Employment...............................................................174

35.37. Residency Requirement...........................................................174

36.38. Layoff Policy .............................................................................174

37.39. Vehicles....................................................................................174

38.40. Promotions...............................................................................184

39.41. Probationary Period.................................................................185

40.42. Performance Evaluations.........................................................185

41.43. Reinstatement .........................................................................195

42.44. Re-employment .......................................................................195

43.45. Grievance Procedures..............................................................196

44.46. Attendance.............................................................................2017

45.47. Completeness of MOU...........................................................2017

46.48. Association Notification or Communications........................2017

49. Labor-Management Committee………………………………………………………..20

47.50. Catastrophic Time Bank .........................................................2017

48. Reopener .............................................................................................17

49.51. Me Too Clause .......................................................................2117 Update of Personnel Rules..................................................................17 Salary Schedule Exhibit A

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Town of Los Gatos and Los Gatos Police Officers Association Comprehensive Memorandum of Understanding
On Salaries, Fringe Benefits and Working Conditions
Preamble
The authorized representatives of the Town of Los Gatos, hereinafter referred to as the "Town" and the authorized representatives of the Town of Los Gatos Police Officers Association hereinafter referred to as "Association" do jointly accept and agree to all the terms and conditions of employment set forth in this comprehensive memorandum of understanding pursuant to Town Resolution 1974-41 of the Town of Los Gatos.

This understanding shall apply to represented employees assigned to those classifications listed on Exhibit A when classifications are created which fall under the representation of POA, this understanding shall also apply.

The terms and conditions of employment set forth in this understanding have been discussed in good faith by the authorized representatives of the Town and the authorized representatives of the Police Officers Association. They agree to recommend acceptance by the employees of all terms and conditions set forth herein. Following said acceptance by the Association, authorized representatives of the Town agree to recommend to the Town Council that all terms and conditions set forth herein be approved by resolution. Upon adoption of said resolution, all terms and conditions so incorporated shall become effective without further action by either party.

Term
The term of this Memorandum of Understanding shall be three years, commencing on October 1, 202118, and terminating on September June 30, 20241.

Section 1. Employer-Employee Relations
The Association recognizes the existence of Town Resolution 1974-41, and its successor if any, during the term of this MOU. Recognition of any amendments to this resolution does not imply POA has agreed to the changes.

Section 2. Savings Clause
If any provision or the application of any provision of this agreement as implemented should be rendered or declared invalid by any court action or decree or by reasons of any preemptive legislation, the remaining sections of this agreement shall remain in full force and effect for the duration of this agreement Section 3. Payroll Deduction
Any employee may sign and deliver to the Association an authorization for payroll deduction of membership dues. The Town agrees to remit to the Association all monies deducted accompanied by a list of workers for whom such deductions have been made and indicating any changes in personnel from the list previously furnished.

The Association shall certify in writing to the Town any changes in the amount of membership dues. The Town shall not be obligated to put into effect any new, changed, or discontinued deduction until the pay period commencing thirty (30) days or longer after such submission.

The Association shall indemnify and hold harmless the Town against any and all suits, claims, demands, and liabilities that may arise out of, or by reason of, any action or omission of the Town in complying with this Section.

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Section 4. Non-Discrimination
The Town and Association agree that all provisions of this agreement shall be applied equally to all employees covered herein without favor or discrimination because of race, religious creed, color, sex (including pregnancy, childbirth, and related medical conditions), age (over 40), gender, gender identity, gender expression, sexual orientation, national origin, ancestry, political or religious affiliation, Association membership or activity on behalf of the Association, marital status, military or veteran status, or physical disability, mental disability, medical condition, or genetic information or any other basis prohibited by applicable federal, State or Town law. Association and Town support equal employment opportunity in hiring, and will support all State and Federal regulations regarding equal employment opportunity.

4.1 General Provision regarding Americans with Disabilities Act A. Because the ADA requires accommodations for individuals protected under the Act, the Association recognizes the Town's obligation to comply with all provisions of the ADA on a case-by-case basis.

B. The Association recognizes that the Town has the legal obligation to meet with the individual employee to be accommodated before any adjustment is made in working conditions. The Association will be notified of these proposed accommodations.

C. Any accommodation provided to an individual protected by the ADA shall not establish a past practice.

Section 5. Salary

5.1 Intent
It is the intent of the Town to maintain salaries and benefits at a level that attracts and retains quality employees. The parties agree that surveys of the wages and benefits of police officers performing comparable work for comparable agencies provide information useful in ensuring that the Town continues to meet this goal.

5.2 Effective 2018
Effective in the first full pay period of October 2018 the Town will provide a two and a half percent (2.5%) salary adjustment for all bargaining unit members.

5.3 Effective 2019
Effective in the first full pay period of October 2019 the Town will provide a two and one-half percent (2.5%) salary increase for all bargaining unit members. Effective in the first full pay period of October 2019 bargaining unit members shall receive an additional increase of 1.5%.

5.4 Effective 2020
The parties agree to re-open on the subject of wages only.

5.5 Market Equity
Effective in the first full pay period in October 2018 market equity adjustments as follows:

Police Officer - 5.0%
Corporal – 5.0%
Sergeant – 5.5%

5.2 Effective Upon Approval
Effective the first full pay period after Council approval of this MOU, or as soon as practical thereafter, the salary rate for all classifications shall be increased by two percent (2%).

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5.3 Effective 2022
Effective the first full pay period in July 2022, the salary rate for all classifications shall be increased by five and onequarter percent (5.25%).

The parties agree that the combined 2022 increases represent a three percent (3%) cost of living adjustment, a market increase of three and fifteen hundredths percent (3.15%), and an additional one and one tenths percent (1.1%) to address the passage of time since October 2021.

5.4 Effective 2023
Effective the first full pay period in July 2023, the salary rate for all classifications shall be increased by three percent (3%).

5.56 Salary Range
Effective October 1, 2014, the Sergeant rank became a 4-step range. Any new Sergeant appointed after that date is appointed to the 4-step range. Acting Sergeant pay will be paid at the top of the new range.

5.65 One-Time Lump Sum
Effective the first full pay period of July 2022 or the first full pay period after Council approval of the MOU, whichever is later, all employees shall receive a one-time non-pensionable lump sum payment of five thousand dollars ($5,000).

5.76 Pandemic Related Bonus
Effective the first full pay period of July 2022 or the first full pay period after Council approval of the MOU, whichever is later, all employees who worked for the Town in 2021 who are employed at the Town through as of the last day of the pay period the bonus is paid, will receive a one-time, non-pensionable lump sum payment of $2,500.

Section 6. PERS Benefits

6.1 Town Contribution
Effective December 13, 1998, the Town ceased its participation in the Public Employee Retirement System "Employer Paid Member Contributions" (EPMC) provision. Concurrently, the Town began paying in salary to the employees covered by this memorandum of understanding the equivalent dollar amount of the former EPMC (9% of salary).

These employees were then responsible for making their own member contributions. The POA acknowledged that implementation of this change had a cost impact to the Town which was equivalent to approximately 1.6% of total compensation.

Substantially concurrent with the adoption of the 1998-2000 memorandum of understanding, the Town Council adopted a Resolution materially the same as that recommended by the Public Employee Retirement System to implement the provisions of 414 (h) (2) of the Internal Revenue Code (IRC). The POA accepted the terms of this Resolution and acknowledged that the Resolution will apply to all current and future members of the POA during the term of this agreement.

The Town contracts with the California Public Employees’ Retirement System (CalPERS or PERS) to provide Town employees with retirement benefits.

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6.21 PERS 3% at 50 Retirement Option Classic Members
For employees that are not “New Members” as defined under Government Code section 7522.04(f), commonly referred to as “Classic Members,” hired with reciprocity or CalPERS membership prior to 1/1/13 without a break in CalPERS service of six months or more or hired and enrolled in CalPERS membership prior to 9/15/12, the Town provides the Effective June 24, 2001, the Town amended its contract with the California Public Employees’ Retirement System to include the 3% at 50 option for members of the bargaining unit. This retirement formula is applicable to employees hired prior to January 1, 2013 or Classic Members (as defined in the California Public Employees’ Pension Reform Act or 2013 (PEPRA) and CalPERS guidance) hired on or after January 1, 2013 with reciprocity in the PERS retirement system.

The Town’s contract with CalPERS for the 3% at 50 option also includes the following optional benefits:
▪ Single Highest Year
▪ 1959 Survivor Benefit Level 4
▪ Conversion of Unused Sick Leave to Service Credit
Effective October 1, 2019 or as soon as administratively feasible following that date, Classic Members will contribute 123% more towards PERS (3% more than required by statute) in accordance with the requirements of Government Code section 20516(a).

6.3 PERS 2.7% at 57 Retirement Option for New Member Employees Hired on or After January 1, 2013
For employees hired on or after January 1, 2013, who meet the definition of New Member under Government’t Code 7522.04(f), the Town will provides the 2.7% at 57 retirement benefit.

The Town’s contract with CalPERS for the 2.7% at 57 option also includes the following optional benefits:
• For employees hired on or after January 1, 2013 will use the 36-month final average compensation (Gov’t Code 20037).
• 1959 Survivor Benefit Level 4
• Conversion of Unused Sick Leave to Service Credit
New Members contribute toward CalPERS hired on or after January 1, 2013 shall pay an amount that is equal to one half (1/2) the normal cost of his/herhis/her/their CalPERS pension as determined annually by CalPERS, or the current contribution rate of similarly situated employees, whichever is greater (Government’t Code 7522.30(c)).

Employees eligible for this retirement formulae retain the option of conversion of unused sick leave to service credit.

Section 7. Education Incentive Pay

7.1 Four-Year Degree Incentive Pay
Two and one-half percent (2.5%) of base salary shall be paid for any member who possesses a four-year degree.

The Town shall pay two and one-half percent (2.5%) of base salary to any member who possesses a four-year degree that enhances their ability to do their job. Employees must submit proof of the four-year degree to Human Resources in order to be eligible for the payment.

7.2 Grandfather ClauseTwo-Year Degree Incentive Pay
For employees hired prior to June 30, 2008, the Town shall pay two and one-half percent (2.5%) of base salary to any member who possesses a two-year degree or meets the minimum requirements to obtain an Associates of Arts Degree that enhances their ability to do their job. Employees must submit proof of the two-year degree or completion of the

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minimum requirements to obtain an Associates of Arts Degree in a related field to Human Resources in order to be eligible for the payment. The incentive pay for a two-year degree does not stack with incentive pay for a four-year degree; the maximum education incentive pay any member may receive under this section 7 is two and one-half percent (2.5%) of base salary

7.2.1 For employees hired prior to January 1, 2008, who qualify to participate in the Town’s Education Incentive program prior to July 1, 2008; served a minimum of fifteen years with the Town of Los Gatos; and possess an Associates of Arts Degree or meet the minimum requirements to obtain an Associates of Arts Degree in a related field, shall be eligible for an additional 2.5% increase in base salary effective the first full pay period following their fifteenth anniversary date from his/her hire date (members with a four year degree are not eligible for this benefit).

7.2.2 For employees who are in the process of being hired prior to January 1,2008; who qualify to participate in the Town’s Education Incentive program within six months of hire; served a minimum of fifteen years with the Town of Los Gatos; and possess an Associates of Arts Degree or meet the minimum requirements to obtain an Associates of Arts Degree in a related field, shall be eligible for an additional 2.5% increase in base salary effective the first full pay period following their fifteenth anniversary date from his/her hire date (members with a four-year degree are not eligible for this benefit).

7.2.3 Eliminate Retention Incentive pay for ten and fifteen years for members hired after January 1, 2008.

7.3 Commencement of Educational Incentive Pay
Educational Incentive Pay is effective the first full pay period after the employee provides Human Resources with sufficient proof that the employee has obtained the requisite degree or education for Educational Incentive Pay.

7.4 Re-Opener
If the law changes on the education requirements for California police officers, the Town has the right to reopen this section 7.

Section 8. POST Certificate Pay
Qualified employees shall receive one of the following payment amounts in accordance with Exhibit A:

A. Employees in their represented classifications who have been awarded an Intermediate POST Certificate: An additional 5% of base salary.

B. Employees in their represented classifications who have been awarded an Advanced POST Certificate: An additional 2.5% of base salary for a total of 7.5%.

Section 9. Special Pays
Officers are limited to one special assignment pay or canine pay. Officers who qualify for bilingual pay may receive bilingual pay in addition to a special assignment pay or canine.

9.1 Special Assignment Pay
Town shall provide a 5% special assignment pay to Association represented personnel who are routinely and consistently assigned as follows:

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9.1.1 Motorcycle Patrol Premium- for unit members who operate and/or patrol on motorcycle.

9.1.2 School Resource Officer Duty Pay – For unit members who are assigned to School Resource Officer duty.

9.1.3 Detective Division Premium- for unit members who are routinely assigned to a detective or investigative division.

9.1.4 Police Administrative Officer-for unit members who are assigned to police administration to provide support for the Police Chief and Command Staff in the operation of the Police Department.

Assignment for special pay purposes shall be done using Town Personnel Action Forms.

Association represented personnel removed from specialty positions on a temporary basis for departmental purposes and through no fault or request of their own shall continue to receive specialty pay for a maximum of 30 calendar days.

The parties agree that special assignment premiums are pensionable as determined by CalPERS.

9.2 Bilingual Pay
The Town will pay an additional 2.5% above base pay for employees who are routinely and consistently assigned to communicate in languages other than English. Bilingual pay will be for Spanish, Russian, Arabic, Chinese, Vietnamese and any other language designated by the Chief of Police. The Town will determine the qualifying criteria including the test and the application to the specific job assignment.

9.3 Canine Pay
Officers who are routinely and consistently assigned to handle, train and board a canine in accordance with this section are eligible for Canine Officer/Animal Premium. Officers assigned to the canine unit are required to care for, train, groom, feed, and bathe their assigned dog. The parties agree that two hours per week is a reasonable amount of time to care for the canine. The Town compensates Canine officers a total of five (5) hours per week for additional time spent caring for the canine. Two (2) hours of this additional time is outside of the regular shift. The remaining three (3) hours is provided as release time.

Call-back as defined in the MOU shall not apply for the purposes of caring for the dog. Compensation provided during the additional paid time and release time is mutually acknowledged to compensate for additional time required to care for, train, groom, feed, and bathe the assigned canine.

9.3.1 Canine Pay Premium
Compensation for the 2 hours outside of the regular shift is paid as a 5% premium on all hours worked.

9.3.2 Canine Release Time
Canine Officers on a 4-10 schedule shall be released in a paid capacity for 0.75 hours prior to the “normal” conclusion of each regularly scheduled shift (4 shifts per week equaling 3 hours per week) for the normal care of the canine, including but not limited to training, grooming, feeding, bathing, and routine veterinarian care.

Canine Officers on a 12-hour schedule shall be released in a paid capacity for 1.0 hours prior to the “normal” conclusion of each regularly scheduled shift (3 shifts per week equaling 3 hours per week) for the normal care of the canine, including but not limited to training, grooming, feeding, bathing, and routine veterinarian care.

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In the event that a Canine Officer is not released in sufficient time prior to the conclusion of his or her shift, the officer will be paid for additional time after the end of shift to compensate them for 0.75 or 1.0 hours of Canine care time as appropriate. The Town recognizes that this may result in overtime.

9.3.3 Commute Time with Canine
Commute time with the canine shall not be considered working time. If there is an event requiring emergency veterinarian care, travel to the veterinarian will be compensable work time.

9.4 Field Training Officer Training Premium
In addition to the above special pays, officers assigned by the Chief of Police as Field Training Officers shall also receive the 5% incentive whenever providing training to a Department member for which a training observation report is required or when completing special assignments directly related to the Field Training Officer Program with prior approval of the Chief of Police. Attendance at FTO meetings, training provided at briefings, or other training provided in conjunction with the Department’s annual Advanced Officer Training or other on-going general training to Department members does not qualify for the 5% incentive.

9.5 Trailing Canine Pay
Officers that personally own a certified and properly equipped Trailing Canine and have been identified as a Department Trailing Canine Handler will provide the Los Gatos-Monte Sereno Police Department with the use of the Trailing Canine when tracking, trailing and related canine services are required. Deployment of the Trailing Canine Team may be requested for location of missing persons, fugitive apprehension and evidence recovery. With the approval of the Chief of Police, the Trailing Canine Team may also be deployed to other jurisdictions. Trailing Canine Handlers are responsible for the maintenance and care of the canine, in addition to recurring in-service training, at no cost to the Town.

9.5.1 Trailing Canine Premium
Officers will receive a five percent (5%) specialty pay premium only during approved deployment and use of services and will submit an approved time sheet noting the specialty pay during the pay period in which the services were rendered. Special assignment premiums are pensionable as determined by CaIPERS.

The Town will reimburse Officers up to, but not to exceed, $150.00 per month premium for private pet insurance.

Officers will submit receipts for payment on a quarterly basis to Finance — Accounts Payable for reimbursement. The Town will also reimburse Officers for insurance deductible payments up to $250.00 per injury/illness incurred to canine while deployed for use on Town assignments.

9.5.2 Trailing Canine Training
Trailing Canine Handlers will maintain required recurring in-service training and associated records, within the scope of policies and procedures of the Los Gatos-Monte Sereno Police Department. Officers will be reimbursed for annual canine recertification course registration fees not to exceed $800.00 per year. Officers are responsible for cost of travel, lodging, and per-diem related to the annual re¬certification course.

Up to 40-hours of paid release time annually will be allowed to attend re-certification course. The approved recertification course constitutes scheduled Department training for which the release time will be honored.

9.6 Posting for Special Assignments
Any opening for a special assignment shall be posted for a minimum of two weeks, unless extraordinary circumstances warrant otherwise.

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Section 10. Acting Sergeant Pay
Police Officers working as acting supervisors shall be compensated at Step "4" of the Sergeant’s rate of pay. Town shall periodically review the actual time use of acting supervisor designations in order to determine the necessity of additional permanent supervisory personnel.

Section 11. Reimbursement of Expenses
The Town shall pay claims for reimbursement within 30 days following the complete and accurate submission of claims as approved by the Finance Director.

Section 12. Tuition Reimbursement
Town will reimburse 100% of the cost of books, university/school fees (except parking) and tuition. Tuition and school fees shall be reimbursed up to the full-time rates of San Jose State University at applicable Undergraduate or Graduate rates per school term. The maximum reimbursement per employee per fiscal year is equivalent to two (2) semesters.

The reimbursement shall be only for courses that are directly related to the employee’s position as determined by the Town Manager, including general education courses that are generally related to attainment of a job-related degree or certification. General education courses not generally related to the employee’s position will not be eligible for reimbursement. Reimbursement shall be taxed pursuant to the State and Federal Regulations.

Application for Tuition Reimbursement shall be made to the Town before the course begins. Prior to reimbursement of costs, all course work must be completed with a passing grade of “C” or equivalent when numerical score or pass/fail is given. Individuals requesting reimbursement must currently be employed by the Town to be eligible for reimbursement.

Any employee who terminates employment with the Town within one year from the completion of a class or classes, for which tuition reimbursement was paid, shall refund all tuition paid under this provision, unless required to attend by the appointing authority.

Section 13. Health and Welfare Benefits and Rate of Town Contribution The Town contracts with CalPERS for the purpose of providing employees and their eligible dependents with medical insurance benefits. During calendar year 2018, the Town will pay a maximum contribution of $133 per month to CalPERS for each eligible active employee towards the purchase of medical insurance for those employees who enroll in and receive such insurance through the Town. Beginning January 1, 2019, tThe Town’s maximum monthly contribution for each eligible active employee shall be equal to the minimum employer contribution required under Public Employees’ Medical and Hospital Care Act (PEMHCA), currently $149 per month, as may be adjusted by CalPERS from year to year.

13.1 Cafeteria Plan
During the term of the MOU, the Town agrees to maintain a Cafeteria Plan, pursuant to Section 125 of the Internal Revenue Code, for the purpose of providing eligible active employees with access to various health and welfare benefits. Benefits available through the Cafeteria Plan include medical insurance, dental insurance, vision insurance and life insurance benefits.

13.2 Dental
Employees choosing this option instead of Cash-in-Lieu will be provided 100% of the Delta Dental DPO Plan premium less a $15.00 employee contribution. If the premium cost of the dental plan exceeds the Town contribution, the employee shall pay through payroll deductions the difference between the monthly premium and the amount contributed by the Town. The Town will pay 100% of the premium for employees choosing to participate in the DeltaCare USA Plan.

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13.3 Medical
The Town will provide active employees with a medical allowance equal to 100% of the cost of the Kaiser Bay Area Medical Insurance Program premium offered by the Public Employees’ Retirement System Health Benefit Medical Program at for the Employee Only level of participation. for all active employees. For dependents, the Town will pay 90% of the difference between Kaiser Employee Only and Kaiser level of participation (Employee Plus One or Employee Family, depending on family status). If the employee chooses medical coverage under a program more expensive than Kaiser Bay Area, the employee will pay the difference between the Town-provided medical allowance and the cost of the more expensive program through payroll deduction.

The Town’s contribution towards medical insurance set forth in Section 13 (the PEMHCA minimum) will be deducted from the amount of contribution provided by this Section.

13.4 Vision
The Town shall pay for employee-only coverage under the Town’s Vision Service Plan (VSP). Employees may enroll eligible dependents at their own cost.

13.5 Cash-In-Lieu Plan
Employees have the option of choosing all available coverages or, upon providing proof of other medical coverage, may choose to opt out of the Town’s coverage and be provided with cash-in-lieu.

Employees who choose to receive the cash-in-lieu must first show proof of alternative minimum essential medical coverage for the employee and employee’s tax family (individuals for whom the employee expects to claim a personal exemption deduction). Individual coverage, and individual coverage from Covered California does not qualify as alternative minimum essential coverage under this section. Employees must provide reasonable evidence of alternative minimum essential coverage each plan year, during open enrollment. The Town will not make the cash payment if it knows or has reason to know that the employee or tax family does not have alternative minimum essential coverage. Any amount received in cash is taxable. Employees choosing to receive taxable cash will have the option of receiving it in two equal amounts in December and June, or the first two paychecks of each month (24 times a year).
• For employees hired before January 1, 2006, the Town contribution to the Cash-In-Lieu program will be equal to Nine Hundred and Twenty-two Dollars ($922) per month. • For employees hired after January 1, 2006, the Town contribution to the Cash-In-Lieu program will be Four Hundred Dollars ($400) per month.

The parties agree to meet and confer at the Town’s request on any changes that are within the mandatory scope of bargaining related to its Town sponsored Medical Insurance and Cash In-Lieu Plan that may be related to the compliance and implementation of the Affordable Care Act or the Fair Labor Standards Act as it relates to the regular rate of pay for overtime.

13.6 Supplemental Health and Welfare Benefits
A. Life: Coverage of $50,000 plus $50,000 accidental death: Town to pay for premium. Additional life insurance may be purchased by the employee equal to once or twice the employee's base salary, not to exceed $200,000.

B. Disability: Short Term Disability Policy effective 8th calendar day; coverage of 60% of weekly earnings up to maximum of $1,300/week for 13 weeks. Long Term Disability benefits begin on the 91st day of disability; coverage of 60% of monthly earnings up to a maximum of $6,000/month.

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C. Employee Assistance Program: Premiums shall be paid by the Town.

D. Unemployment Insurance: Premiums shall be paid by the Town to provide State coverage.

Section 14. Retiree Health
The Town provides retiree health benefits in accordance with the PEMHCA for employees who qualify as eligible PERS retirees who receive a PERS retirement allowance and are PEMHCA annuitants entitled to such benefits under the PEMHCA.

Beginning October 1, 2018, the Town will pay a maximum contribution of $133 per month to CalPERS for each eligible annuitant towards the purchase of medical insurance. Beginning January 1, 2019, tThe Town’s maximum monthly contribution for each eligible annuitant shall be equal to the minimum employer contribution required under the PEMHCA, currently $149 per month, as may be adjusted by CalPERS from year to year. The provisions of PEMHCA will govern medical insurance coverage for annuitants.

14.1 Retiree Health Health Reimbursement Account (HRA) Benefit for Eligible Retirees Hired On or before Before October 1, 2018
An employee hired on or prior to October 1, 2018, or provided with a final offer confirmation of employment prior to October 1, 2018ratification and approval of the 2018-2021 Memorandum of Understandingis agreement, is eligible for Health Reimbursement Account (HRA) retiree health benefits in accordance with this Section.

14.1.12 The employee retired from the Town taking a service or disability retirement from CalPERS as a retiree receiving a PERS retirement allowance and is a PEMHCA annuitant; and,

14.1.23 The employee must actually draw a CalPERS pension within ninety (90) days of separation from the Town, provided the employee remains with the Town’s health plan through COBRA.

14.41.3 The amount of the supplemental retiree health benefit allowance will be equal to 100% of the cost of the premium for Kaiser Bay Area Retiree Only and 90% of the difference between the Kaiser Employee Only and Kaiser level of participation (Employee Plus One or Employee Family, depending on family status)Bay Area Retiree Plus One level of participation. For dependents, tThe Town will pay $1,443.45 per month towards a Retiree Plus One plan and $1,9547.16 per month towards a Retiree Plus One or More plan, as of the 2022 plan yearOctober 1, 2018. This amount will increase by $100.00 each year until it is equal to the active employee contribution.

14.51.4 The Town’s contribution towards retiree health insurance set forth in Section 14 (the PEMHCA minimum) will be deducted from the amount of contribution provided by this Section (14.14).

14.61.5 Employees retiring on or after February 1, 2016 and upon becoming eligible for Medicare will cease to receive any retiree health benefit allowance under this Section (14.41) and will become eligible for Supplemental Medicare equal to the cost of Kaiser Senior Advantage Bay Area Medicare rates up to a maximum of 100% Retiree Only, 90% for Retiree Plus One or 90% for Retiree Plus One or More less the amount of the employee contribution provided under Section 14 (the PEMHCA minimum). This benefit is available to the eligible retired employee only after he or she has

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reached the age of 65 and is Medicare eligible or as otherwise specified by law.

14.71.6 The benefits described by this Section (14.14.4) will be provided to annuitants through CalPERS by means of a Health Reimbursement Account (HRA).

14.82 Retiree Health Benefit for Eligible Retirees Hired After October 1, 2018 The parties agree to add the PORAC Trust option requiring bargaining unit employees to contribute at least $100 per month subject to reaching mutual agreement on the language. The parties agree that administrative fees required by the PORAC trust shall be split 50/50 by the Town and the POA.

The Association will establish participation in a retiree medical plan administered by the PORAC Retiree Medical Trust (PORAC RMT). This agreement to participate will apply to every employee, represented by the Association, hired by the Town after October 1, 2018. The cost of establishing and maintaining the Trust shall be at no cost to the Town, including administrative fees. The Town is not a party to the Trust, aside from transferring funds, and has no obligations to the management, regulatory compliance or performance of the trust. In the event the Trust becomes insolvent or unable to pay, the Town has no financial obligation to the Trust or the contributing members of the Association.

The Town will transfer a monthly employee contribution of one hundred dollars ($100.00) for each Association member deducted in fifty dollars ($50.00) increments from the first two paychecks of each month (24 times per year).

These contributions shall be on a pre-tax basis if permitted by law. As each member will contribute the same predetermined dollar amount, no member election forms designating the amount will be needed, allowed or requested; and there shall be no member election available to take the member contribution amount in cash, or to determine the member contribution amount. These contributions shall be included as salary for purpose of calculating retirement benefits as determined by the California Public Employees Retirement System (CaIPERS).

The Town will comply with reasonable procedures set by the Trust Office with regard to reporting and depositing the required contributions set forth above, typically involving providing the Trust Office with the name, social security number and amount paid for each Association member. In the event that the reporting requirement of the Trust requires reporting beyond that which the Town typically provides, the Town may require the Association to pay for any costs related to programing or producing such reports. Prior to engaging in any activity that could result in such an expense, the Town will secure the Association's authorization The Association agrees to defend, indemnify, and hold the Town harmless from any liabilities of any nature which may arise as a result of the operating of the PORAC RMT, except for the obligation of the Town to make and report the nonelective transfer of Association member contributions as described above.

The monies contributed to the Trust fund shall only be used for retiree health insurance premiums or health care expenses, as allowed by law. There shall be no Association member election/option available to take such amount in unrestricted cash.

The purpose of this Trust shall be to provide for retiree health care expense reimbursement benefits. The Trust shall be and remain separate and apart from any Town health insurance funding program, unless changed by mutual written agreement of the parties. The contributions set forth above, unless otherwise dictated by law or rules set forth by CalPERS, shall be included as salary for purpose of calculating pension benefits.

The Town hereby acknowledges receipt of the Trust Agreement governing the Trust. The Town will cooperate with the Trust in allowing a payroll audit only for the purpose of ascertaining if the proper amount of contributions have been made.

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Section 15. Uniforms
The Town will provide a full set of uniforms and equipment (per Department Uniform Policy) to each new employee.

The Town will replace authorized uniform items damaged in the performance of duty as approved by the Chief of Police.

Effective upon ratification and approval by the Council of this Agreement, tThe Town will pay bargaining unit employees a uniform allowance of One Hundred Fifteen Dollars ($115) per month (paid the first two pay periods of each month) for the repair, maintenance, and replacement of uniforms.

Section 16. Mileage Reimbursement
Employees using personal vehicles on official Town business shall be reimbursed at the mileage rate established by the I.R.S. Private vehicles used for Town business shall comply with the California Vehicle Code.

Mileage reimbursement requests must be submitted within 30 days of the date accrued.

Section 17. Payroll Periods
The Town and Association agree to the continuation of a biweekly payroll period. The following conditions are in effect:

A. Employee pay shall not be withheld more than seven (7) calendar days from the end of the payroll period, however, a maximum of two days overtime may appear on the next payroll period if it is worked following the submittal of time sheets, or during a pay period with a Town holiday which requires early submittal of time sheets and early distribution (before Friday) of pay checks. This may also occur at the end of the fiscal or calendar year.

B. The Town shall provide an optional electronic check deposit system for use by employees.

Section 18. Paychecks
Payroll deductions and accruals shall appear on all paychecks.

Section 19. Deferred Compensation
The Town shall continue to offer a program of deferred compensation to its members in the represented classifications. The Town makes no representation on the merit of the plan nor any of the investment products or instruments which may be offered by the plan. The responsibility for evaluating the options within the plan is the responsibility of the individual participant. The Town shall not be obligated to offer more than one Deferred Compensation carrier.

Section 20. Overtime
Overtime is time worked beyond any scheduled work shift.

All overtime worked shall be compensated at time and one-half. The employee may choose whether overtime worked shall be paid in cash or accumulated as Compensatory Time Off (CTO), subject to a maximum accumulated CTO of one hundred and forty (140) hours.

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On or before the pay period which includes December 15 of each calendar year, an employee may make an irrevocable election to cash out up to 40 hours of CTO twice per year (paid at the regular rate of pay in whole hour increments) which will be earned in the following calendar year. In the first full pay period of June and December in the following year, the employee will receive cash for the amount of CTO the employee elected to cash out in the prior year.

However, if the employee’s CTO balance is less than the amount the employee elected to cash out (in the prior calendar year) the employee will receive cash for the amount of the CTO the employee has accrued at the time of the cash out.

Annual review of the impact of those changes will occur to determine if there is any adverse impact on scheduling.

For private duty contracts, officers may only receive pay.

Overtime is to be approved by a supervisor as soon as practical. Overtime payroll sheets are the responsibility of the employee to have approved and forwarded to the division commander by the appropriate payroll deadline.

Section 21. Duty Extension
Compensation is made for actual time worked and shall be computed in minimum quarter-hour blocks.

Personnel whose work hours would normally terminate within one hour or less from the time of the scheduled court, meeting, or training commencement will be compensated from the termination of their normal work hour through the termination of the scheduled event.

Duty extension is paid at time and one half.

Section 22. Call Back
Requests that personnel return to duty, attend mandatory meetings, court appearances and training classes are call backs and compensated at a 3 hour minimum or actual time, whichever is greater. Mandatory meetings where a minimum of two weeks’ notice has been given are not a call back and will be compensated at a one (1) hour minimum or actual time worked whichever is greater.

Call backs for officers assigned to Watch I (midnight shift) who have worked the night before shall receive a minimum of 4 hours.

Personnel are considered on duty for the duration of a call back.

Court appearances-hearings-depositions: Required off duty attendance at judicial or administrative hearings is compensated at a 3-hour minimum (4 hours for midnight if shift worked the night before appearance), or actual time, whichever is greater. Should there be more than one appearance, including separate court locations, within the 3 or 4 hour time period, only one minimum will be granted.

Call back is paid at time and one half.

Section 23. Vacation Schedule
The following vacation schedule shall apply to all employees:

Months of Employment
Accrual
Days Per Year
Accrual
Hours Per Pay Period
0 to 36 10 3.08
37 to 60 15 4.62

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61 to 120 20 6.46
121 to 180 23 7.08
181 months 25 7.70
Maximum accrual of vacation hours shall be 344 hours.

On or before the pay period which includes December 15 of each calendar year, an employee may make an irrevocable election to cash out up to 80 hours of vacation twice per year (in whole hour increments) which will be earned in the following calendar year. In the first full pay period of June and December in the following year, the employee will receive cash for the amount of vacation the employee irrevocably elected to cash out in the prior year. However, if the employee’s vacation balance is less than the amount the employee elected to cash out (in the prior calendar year) the employee will receive cash for the amount of vacation the employee has accrued at the time of the cash out.

Section 24. Vacation and Overtime Compensatory Time Off Cash-out Employees who terminate from Town service shall have all accrued vacation and compensatory time off overtime cashed-out. This will terminate their status as an employee of the Town.

Section 245.Shift and Vacation Selection Procedures
Patrol shift selection and vacation bidding shall commence approximately ten weeks prior to shift change, unless circumstances require otherwise.

The Town agrees to continue efforts to transition to an online mechanism for shift and vacation selection.

Due to the Association’s concerns regarding changes to the vacation selection procedure that arose due to sworn staffing shortages and its effect on officer access to vacation, the parties agree to meet to discuss shift and vacation selection procedures during the month of July 2022. Upon request by the Union, the parties will promptly meet and confer on the limited issue of the Department’s vacation selection procedure. Any changes to the existing vacation selection procedure will be by mutual agreement.

Section 26. Holidays and Holiday Pay
The following holidays will be observed by non-uniform personnel:
• January 1.
• the third Monday in January.
• the third Monday in February.
• the last Monday in May.
• Juneteenth.
• July 4.
• the first Monday in September.
• Thanksgiving Day.
• the Friday following Thanksgiving Day.
• December 25.
• Four hours on December 24 and December 31
• Every day declared a Holiday by the Mayor as a result of a national holiday declared by the President or State Governor.

Holidays which fall on Saturday shall be observed on the Friday prior and holidays which fall on Sunday shall be observed on the following Monday.

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Uniform personnel assigned to shift work (Patrol and Traffic) shall receive compensation in-lieu of holiday time off equal to eighty (80) hours of base pay annually. Employees shall have the option of taking Holiday leave off equal to eighty hours (80) or receive in-lieu compensation. If the employee selects to receive in-lieu compensation, forty (40) hours of holiday pay will be received in the last payroll of November and the second forty (40) hours will be received in the last payroll of May, and will be included on the regular check. In-lieu holiday pay shall cease whenever an employee is reassigned to other than shift work. The employee shall observe holidays as described above. In the event that an additional holiday is observed by the Town during the term of this agreement, the in-lieu compensation shall be increased by the additional hours holiday time made available to non-uniform personnel (the language of this paragraph becomes null and void effective January 1, 2019).

Effective beginning January 1, 2019, the parties agree to pay holidays for bargaining unit employees through Holiday InLieu pay of 4.0%.

Effective the first full pay period of July 2022 or the first full pay period after Council approval of the MOU, whichever is later, in recognition of Juneteenth, holiday in-lieu pay will be increased by 0.4%, to total 4.4%.

Effective the first full pay period of July 2022 or the first full pay period after Council approval of the MOU, whichever is later, employees will receive a one-time, non-pensionable lump sum payment of one thousand dollars ($1,000) for foregoing the Juneteenth holiday prior to 2023.

Section 276.Personal Leave
Employees shall have the option of either taking personal leave off equal to twenty-four (24) hours of base pay annually, or receiving in-lieu compensation equal to same if the personal leave is not used by the end of November.

Employees may use personal leave hours during the month of December; however, employees desiring to receive compensation for those hours shall do so in conjunction with the annual cash out in November.

Section 278.Sick Leave
Accumulation rate shall be 8 hours per month (3.70 hours per pay period) with a maximum accrual of 1180 hours. The Town may require association represented employees to provide a doctor statement of proof of illness for any use of sick leave beyond one working day.

Section 298.Sick Leave Cash-Out Program
298.1 Annual Sick Leave Cash-Out for Employees Hired Prior to October 1, 2018 On or before the pay period which includes December 15 of each calendar year, employees eligible to cash out under this section may make an irrevocable election to cash out up to 40 hours of their accumulated sick leave at 50% of current salary two times per year (in whole hour increments) which will be earned in the following calendar year. In the first full pay period of June and December in the following year, the employee will receive cash for the amount of sick leave the employee irrevocably elected to cash out in the prior year. However, if the employee’s sick leave balance is less than the amount the employee elected to cash out (in the prior calendar year) the employee will receive cash for the amount of sick leave the employee has accrued at the time of the cash out. 298.2 Sick Leave Cash-Out Upon Termination for Employees Hired Prior to October 1, 2018
Employees who terminate employment with the Town for any reason other than retirement or disciplinary termination, may cash-out their accumulated sick leave as follows:

Months of Employment
1-59 months 25%

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60-119 months 37.5%
120 months or more 50%
In order to be eligible for the sick leave cash-out program, an employee must have a sick leave accrual balance of at least 200 hours at the time of termination.
298.3 Unused Sick Leave Upon Retirement
Upon retirement, eligible employees may choose from the following options:

1. Eligible employees may convert unused sick time to service credit in accordance with provisions established by CalPERS.

2. Sick Leave Cash Out for Employees Hired Prior to October 1, 2018 All eligible employees who retire with a sick leave accrual balance of at least 200 hours may elect to be paid in cash in accordance with the same provisions as Section 28.2 Sick Leave Cash-Out Upon Termination.

3. Sick Leave Conversion for Employees Hired Prior to January 1, 2009 All employees who retire with a sick leave accrual balance of at least 200 hours may convert 100% of this accumulated sick leave to a dollar equivalent at their hourly rate of pay at the time of retirement. This amount shall be held in an account. The employee’s portion of the medical insurance premium payment will be withheld from their monthly retirement payment by PERS.

The Town agrees to pay the retiree quarterly in advance on the first pay period of January, April, July, and October of each year after retirement. The first payment will be pro-rated to the nearest quarter.

Retiree’s (including dependents of the retiree) portion of medical payments will be paid from this account by the Town until all monies are depleted from the account.

This account will not accrue interest and will not be paid in cash to the retiree or any beneficiaries. The retirees shall be responsible for 100% of their share of future medical insurance premiums once the account is exhausted.

Section 3029. Military Leave
Military leave and benefits shall be granted in accordance with State and Federal Law, including the continuation of employee salary and benefits if applicable.

Generally, employees with more than one year service will receive up to thirty (30) calendar days of paid military leave annually while engaged in military duty ordered for purposes of active military training.

Section 310.Bereavement/Compassion Leave
Up to 40 hours available per occurrence – use limited to spouse, parent, grandparent, child, or sibling by blood or marriage. It is recognized that bereavement/compassion leave is separate from employee’s accumulated sick leave, vacation or CTO.

Section 321.Leave Without Pay
Leave without pay shall be subject to approval of the Chief of Police and the Town Manager.

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An employee who is on leave without pay shall not earn any employment benefits (including, but not limited to, such benefits as vacation leave, medical benefits, sick leave, retirement, credit for time employed or seniority entitlement of any kind) for the duration of such leave.

Vacation or sick leave or time worked shall not be used intermittently during an extended leave to interrupt a determination that an employee is on leave without pay.

The Town may, at its discretion, approve leave beyond the specific amount provided above.

Section 332.Accrual of Benefits
Benefits shall not accrue to employees on unauthorized leave, suspension without pay, or leave without pay.

Section 343.Workers’ Compensation
Employees shall be provided benefits in compliance with State law.

Section 354.Jury Duty
Employee salary and benefits shall be continued during jury duty; employee turns over to the Town any compensation from the courts or other source of jury duty on regular work days.

Section 365.Outside Employment
Outside employment shall be subject to approval of the Chief of Police and the Town Manager, subject to the following limitations: no security work within Town limits; no use of Los Gatos uniform, badge, ID, or Los Gatos issued items; vacation or CTO to be used for court appearances resulting from private employment. Approval must be obtained prior to engaging in the outside employment and shall be renewed prior to July 1 of each year.

Section 376.Residency Requirement
There is no residency requirement for represented employees.

Section 387.Layoff Policy
Association recognizes the right of the Town to determine the resources to be made available to the police department. Although a reduction in force (layoff) is not anticipated, it is recognized that it is the sole right of the Town to determine when such reductions in force are necessary.

Reductions in force shall be by classification with the determination of affected employees by the Town based on seniority counted as total time employed by the Town. Affected employees shall be provided a minimum thirty (30) calendar days’ notice of layoff.

Employees in the classification of Police Sergeant and designated for layoff shall have the right to return to positions previously held with the Town and represented by the Association.

Section 398.Vehicles
Town shall advise POA no later than sixty days prior to Town development of vehicle specifications for patrol vehicles.

POA shall submit recommended specifications for vehicle purchase no later than thirty (30) days after receiving the notice from the Town.

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Section 3940. Promotions
The Town and Association agree that it is in the best interest of both the Town and its employees to foster promotion of incumbent employees.

The Town and Association recognize the Town's sole right to determine the examination process for the selection of Town employees. Qualified employees who are invited to participate in the examination process shall be allowed up to two (2) hours of time-off from regularly scheduled work in order to participate in the examination process if the examination process is scheduled during the employee's normal work period.

To the best of its ability, the Town shall maintain a current promotional list for the positions of Police Corporal and Police Sergeant.

Any opening for Police Corporal or Police Sergeant positions shall be posted for a minimum of three weeks, unless extraordinary circumstances warrant otherwise.

Section 410.Probationary Period
The Town and the Association agree that all original appointments to the rank of Police Officer will include a probationary period of 18 months from date of hire to allow the department to fully evaluate the officer following the academy and FTO training.

Individuals hired as a lateral transfer must have a valid P.O.S.T. Basic Certificate at the time of hire and will be subject to a 12-month probationary period.

Any individual on an 18-month probationary period will be eligible to receive a step increase after 12 months.

All promotional appointments to the positions of Corporal and Sergeant shall be subject to satisfactory completion by the employee of a 12-month probationary period.

The Chief of Police may extend the probationary period of an employee for a period not to exceed an additional six (6) months.

Section 421.Performance Evaluations
Performance evaluations shall take place at least every three (3) months for all probationary employees and shall take place at least annually thereafter on the anniversary of an employee’s employment with the Town. Employees eligible for step increases shall receive their performance evaluation no later than fifteen (15) days prior to their employment anniversary date.

All performance evaluations shall be discussed with the employee prior to the evaluation being completed. Employees may sign their individual performance evaluations as evidence of discussion having taken place; employee signature does not necessarily imply agreement with the evaluation. If an employee chooses not to sign an evaluation, the supervisor will note that the employee has read the evaluation and chooses not to sign. An employee may attach separate written comments to his/herhis/her/their evaluation.

Town of Los Gatos Los Gatos Police Officers’ Association October 1, 202118 – September June 30, 20241

10096528.1 LO007-005 -6/2/22
Section 423.Reinstatement
Subject to the approval of the Town Manager, a permanent employee who has resigned from employment with the Town may be reinstated within two (2) years of his/herhis/her/their resignation to his/herhis/her/their former position, if vacant. Upon reinstatement, the employee shall be considered as though he/she/they had received an original appointment, unless other conditions are made a part of the reinstatement by the Town Manager.

Section 434.Re-Employment
The names of employees affected by layoff shall be placed on appropriate re-employment lists in the order of total continuous cumulative time served in paid status. Such names shall remain thereon for a period of eighteen (18) months unless such persons are sooner re-employed. When a re-employment list is to be used to fill vacancies, the Personnel Officer shall certify from the top of such list the number of names equal to the number of vacancies to be filled, and the appointing power shall appoint such persons to fill the vacancies.

Section 445.Grievance Procedures
Grievances shall be defined as alleged violations of this agreement or disputes regarding interpretations, application, or enforcement of this agreement to Town ordinances, resolutions, and written policies related to personnel policies and working conditions. Grievances shall not include disagreements, disputes, or activities regarding or pertaining to examinations for employment or promotion, disciplinary action, performance evaluations, and probationary terminations.

No act or activity which may be grievable may be considered for resolution unless a grievance is filed in accordance with the procedure contained herein within sixty (60) calendar days of the date the grievable activity occurred or the date the employee could reasonably have known such activity occurred. The provision for the sixty (60) days “statute of limitations” shall not apply to probationary employees.

The parties agree that all grievances will be processed in accordance with the following procedure:

Any employee who has a grievance shall first try to get it settled through discussion with his/herhis/her/their immediate supervisor without undue delay. Every effort shall be made to find an acceptable solution at the lowest possible level of supervision. If after such discussion the employee does not believe the grievance has been satisfactorily resolved, he/she/they may file a formal appeal in writing to the command officer responsible for supervision of the employee’s immediate supervisor within ten (10) calendar days after receiving the informal decision of his/herhis/her/their immediate supervisor. The command officer shall respond within ten (10) calendar days of the filing of the appeal.

If the employee does not believe the grievance has been satisfactorily resolved by the command officer, the employee may then file a formal appeal in writing to the Chief of Police within ten (10) calendar days after receiving the informal decision of the command officer. The Chief of Police shall render his written decision within ten (10) calendar days after receiving the appeal.

If after receipt of the written decision of the Chief of Police, the employee is still dissatisfied, he/she/they may appeal the decision of the Chief to the Town Manager. Such appeal shall be made by filing a written appeal to the Town Manager within five (5) days after the receipt of the written decision of the Chief. The Town shall render a written decision within twenty (20) working days after the appeal is made.

If after receipt of the written decision of the Town Manager the employee is still dissatisfied, he/she/they may appeal the decision of the Town Manager to the Personnel Board. Such appeal shall be made by filing a written appeal to the Chair of the Personnel Board within five (5) days after receipt of the written decision of the Town Manager.

Town of Los Gatos Los Gatos Police Officers’ Association October 1, 202118 – September June 30, 20241

10096528.1 LO007-005 -6/2/22
The Personnel Board shall establish a hearing date within 30 days of receipt of the written appeal. The Personnel Board shall conduct a closed hearing giving opportunity for presentation by the employee or his/herhis/her/their representative and the Town Manager. The Personnel Board shall render a written decision within 30 days after the appeal is made. If after receipt of the written decision of the Personnel Board, the employee is still dissatisfied, he/she/they may appeal the decision of the Personnel Board to the Town Council. Such appeal shall be made by filing a written appeal with the Mayor. The Mayor shall schedule a closed hearing with the Town Council within 30 days after receipt of the appeal. At this hearing, the employee and the Town Manager may make presentations. The Town Council decision shall be final. The Town Council shall render a decision within 30 days after the hearing. An open hearing may be conducted by the Personnel Board or Town Council with mutual consent of the Town and person(s) filing the grievance.

The time limitations for filing and responding to grievances may be waived or extended by mutual agreement of the parties. If either party to the grievance so requests, an informal hearing shall be conducted at the Chief of Police or Town Manager appeal levels. Employees may be represented by counsel or other person at any stage in the grievance process.

Section 456.Attendance
Employees shall be in attendance at their work in accordance with the rules regarding hours of work, holidays and leave.

An employee whose absence is not authorized will not receive pay or benefits for the absent period and shall be subject to discipline. Failure on the part of an employee absent without leave to return to duty shall be grounds for discharge. It shall be the responsibility of an employee absent without leave to notify the department head of the reason the employee is absent and of the employee’s availability for duty.

Section 476.Completeness of MOU
The Town and the Association acknowledge and agree to abide by the provisions of the Meyers-Milias-Brown Act.

Section 478.Association Notification or Communications
The Town and the dDepartment will make every reasonable effort to keep the Association President informed on issues related to the working conditions of the Association members.

Section 49. Labor-Management Committee
As part of a continuing effort to promote healthy labor relations, the Department and the Association shall establish a Police Labor-Management Committee to meet on at least a quarterly basis to promote open communication and the sharing of information. It is the intent of the parties that the Chief or designee and the Association President or designee will attend these meetings.

Section 4850. Catastrophic Time Bank
If an employee is catastrophically ill or injured, or if the spouse or child of such employee becomes catastrophically ill or injured, the employee may request of the Town Manager that a catastrophic time bank be established. This request should be in writing. The catastrophic time bank will enable other employees to donate accrued CTO, holiday credits, or vacation credits to the requesting employee in accordance with departmental policies.

Specific procedures for the administration of the catastrophic time bank will be developed by the department.

Town of Los Gatos Los Gatos Police Officers’ Association October 1, 202118 – September June 30, 20241

10096528.1 LO007-005 -6/2/22
Section 49. Reopener
If, for any reason, the Chief of Police decides it is in the best interest of the Department to discontinue the 4-10 Plan within the term of this agreement, the Town of Los Gatos agrees to reopen negotiations within 30 days on all provisions of the MOU.

Section 510.Me Too Clause
The Town shall not enter into an agreement with another bargaining unit, local union or management unit so that unit, local or bargaining unit can receive any compensation related to any salary or total compensation increase obtained by the POA.

Section 51. Update of Personnel Rules
The Town will be updating the Personnel Rules during the term of this agreement. The Town will provide notice and an opportunity to meet and negotiate any negotiable changes to the Personnel Rules. The parties agree to this process for this update.

Class Code Classification Title Range Step Hourly Rate
2520 Police Sergeant (Prior) 04-0721 1 $66.43
Appointment before 03/01/2015 2 $69.75
3 $73.24
4 $76.90
5 $80.75
Class Code Classification Title Range Step Hourly Rate
2521 Police Sergeant (New) 05-0721 1 $66.43
Appointment after 03/01/2015 2 $69.75
3 $73.24
4 $76.90
Class Code Classification Title Range Step Hourly Rate
7500 Police Corporal 03-0715 1 $55.12
2 $57.88
3 $60.77
4 $63.81
5 $67.00
Class Code Classification Title Range Step Hourly Rate
7510 Police Officer 02-0711 1 $52.50
2 $55.13
3 $57.89
4 $60.78
5 $63.82
Class Code Classification Title Range Step Hourly Rate
9519 Police Trainee * 01-0710 1 $49.88
* 95% of Step 1 of Police Officer Classification (Provisional Employee with Misc PERS) Reflects General Increase of 2%.

Town of Los Gatos POA Classifications
Salary Schedule for Fiscal Year 2021/22
Effective June 12, 2022
Adopted by Town Council June 7, 2022
POA 2% 1 Approved 6/7/2022
ATTACHMENT 1

Class Code Classification Title Range Step Hourly Rate
2520 Police Sergeant (Prior) 04-0721 1 $69.92
Appointment before 03/01/2015 2 $73.42
3 $77.09
4 $80.94
5 $84.99
Class Code Classification Title Range Step Hourly Rate
2521 Police Sergeant (New) 05-0721 1 $69.92
Appointment after 03/01/2015 2 $73.42
3 $77.09
4 $80.94
Class Code Classification Title Range Step Hourly Rate
7500 Police Corporal 03-0715 1 $58.01
2 $60.91
3 $63.96
4 $67.16
5 $70.52
Class Code Classification Title Range Step Hourly Rate
7510 Police Officer 02-0711 1 $55.26
2 $58.02
3 $60.92
4 $63.97
5 $67.17
Class Code Classification Title Range Step Hourly Rate
9519 Police Trainee * 01-0710 1 $52.50
* 95% of Step 1 of Police Officer Classification (Provisional Employee with Misc PERS) Reflects General Increase of 5.25%.

Town of Los Gatos POA Classifications
Salary Schedule for Fiscal Year 2022/23
Effective July 10, 2022
Adopted by Town Council June 7, 2022
POA 5.25% 1 Approved 6/7/2022
ATTACHMENT 2

PREPARED BY: Salina Flores
Human Resources Director
Reviewed by: Town Manager, Assistant 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: 06/07/2022
ITEM NO: 19

DESK ITEM
DATE: June 2, 2022
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Approve a Labor Agreement Between the Town of Los Gatos and the Police Officers’ Association and Authorize the Town Manager to Execute the Memorandum of Understanding
REMARKS:

Attachment 4 contains public comments received between 11:00 a.m., Monday, June 6, 2022, and 11:01 a.m. Tuesday, June 7, 2022.

Attachments Previously Received with the Staff Report:

1. Salary Schedule for POA effective June 12, 2022

2. Salary Schedule for POA effective July 10, 2022
Attachments Previously Received with the Addendum:

3. Redlined LG POA MOU
Attachments Received with this Desk Item:

4. Public comments received between 11:00 a.m., Monday, June 6, 2022, and 11:01 a.m.

Tuesday, June 7, 2022.

ATTACHMENT 4
From: Phil Koen
Sent: Tuesday, June 07, 2022 10:59 AM
To: Rob Rennie <[email protected]>; Matthew Hudes <[email protected]>; Mary Badame <[email protected]>; Maria Ristow <[email protected]>; Marico Sayoc <[email protected]>
Cc: Laurel Prevetti <[email protected]>; Shelley Neis <[email protected]>; Arn Andrews <[email protected]>; jvannada; Rick Van Hoesen; Lee Fagot; Catherine Somers Subject: Agenda items #19 - #22
Dear Honorable Mayor and Members of the Town Council,
The Los Gatos Community Alliance respectfully requests that Agenda items #19 through #22 be pulled from tonight’s consent calendar to allow for public discussion and increased transparency. We acknowledge that the terms of the various labor agreements are the result of a long negotiation process and want to thank all parties for their efforts in finding a solution. We want to also thank the Town Council for their hard work on this matter.

Issue
The reason for pulling these items revolves around the lack of transparency in the Staff report. While we understand labor negotiations are confidential and therefore little was disclosed during the process, it is then extremely important that the Staff report be comprehensive and fully transparent in detailing how the Town arrived at these results. This is particularly important when the only benchmark the public had regarding possible increases in salary and benefit expenditures for FY 23 was what was included in the preliminary budget. Clearly, what is being approved tonight is materially greater than what was in the preliminary budget.

Request for more information
The LGCA requests that Staff disclose the following additional information prior to any vote on agenda items #19 through #22:

1. What will be the total salary and benefit expenditures for FY 23 as previously reported on Schedules C-8, C-9, C-10, C-11, C-12, and C-13 after taking into effect all salary adjustments recommended in Agenda items #19-#22?

2. How is the $2,318,733 (increases to negotiated salary increases) being funded? Since the proposed FY 23 budget did not have an operating surplus, where are the additional sources of funds coming from to cover this increase? Please be specific.

3. A portion of the $2,318,733 expenditures are one-time in nature. How much are the “one- time payments” and how much will be recurring expenditures beyond FY 23?

4. Please disclose the initial offer letter from the Town to each of the bargaining units so the public has full transparency to the negotiating process. For sake of clarity, the City of San Jose releases to the public all correspondence between bargaining units once agreements have been reached and voted on by the bargaining units. It appears we are at that point.

5. If the Town does not use $902,579 of the OPEB 115 Trust Assets to “further balance the budget” what other funds could the Town tap to provide the required source of funding? Was this discussed and approved by the Town Council Trust Fund Committee? Thank you.

Phil Koen
LGCA

PREPARED BY: Salina Flores
Human Resources Director
Reviewed by: Town Manager, Assistant 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: 06/07/2022
ITEM NO: 20
DATE: June 2, 2022
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Approve a Labor Agreement Between the Town of Los Gatos and the Town Employees’ Association and Authorize the Town Manager to Execute the Memorandum of Understanding
RECOMMENDATION:

Staff recommends that the Town Council approve a Labor Agreement Between the Town of Los Gatos and the Town Employees’ Association (TEA) and Authorize the Town Manager to Execute the Memorandum of Understanding .

BACKGROUND:

In accordance with the Town’s Employer-Employee Relations Resolution No. 1974-41, representatives of the Town and TEA have met and conferred in good faith and within the scope of representation in an effort to reach agreement for a successor Memorandum of Understanding (MOU). The revised agreement will be posted as an Addendum on June 3, 2022.

The MOU is a labor agreement that identifies specific terms and conditions of employment applicable to the employees represented by that agreement.

DISCUSSION:

The Town’s current MOU with TEA expires on June 30, 2022. In April 2022, the Town and TEA began negotiating for a successor agreement. A tentative agreement for a two-year term was reached in April and TEA membership ratified on June 2, 2022.

Major provisions of the agreement include and are not limited to:

1. Term: July 1, 2022 to June 30, 2024

PAGE 2 OF 3
SUBJECT: Approve a Labor Agreement Between the Town of Los Gatos and the American Federation of State, County, and Municipal Employees and Authorize the Town Manager to Execute the Memorandum of Understanding DATE: June 2, 2022
DISCUSSION (continued):

2. Salary:
a. Effective the first full pay period of July 2022 (Effective July 10, 2022), or the first full pay period after Council approval, whichever is later, the Town will provide a 3% cost of living adjustment (COLA) and a 5% market increase for a total of 8%.

The market increase is intended to bring TEA classifications to or near market median based on data in a compensation survey of the relevant labor market completed by outside consultant Bryce & Associates in April 2022 . b. Effective in the first full pay period of July 2023, the Town will provide a 3% cost of living salary increase.

3. Pandemic Related Bonus: Effective the first full pay period of July 2022, or the first full pay period after Council approval, whichever is later, all employees who worked for the Town in 2021, who are employed at the Town as of the last day of the pay period will receive a one-time, lump sum payment of $2,500.00.

4. Juneteenth Holiday: Effective after Council approval of this MOU, June 19th (Juneteenth) shall be added to Section 29 of the MOU as an observed paid eight (8) hour holiday for employees represented by TEA.

5. Market Adjustments: On one occasion during the term of the MOU, upon request by the Union, the Parties agree to meet to discuss elements of future compensation surveys for TEA and ways to collaborate to obtain the best market data for TEA classifications. The parties agree this is not a reopener and any changes to the MOU on this issue would be by mutual agreement of the parties.

6. Compensatory Time Off (CTO) for Non-Dispatchers: Increase CTO accrual limit by twenty (20) hours to maximum of eight (80) hours.

7. Bereavement Leave: Add Stepchildren, foster children, stepparents/parents in law, and grandchildren.

The Town and TEA have also agreed to various MOU language updates. The red-lined MOU will be posted on Friday, June 3, 2022 as an Addendum. These updates clarify existing language, delete obsolete language, and ensure compliance related to the Town’s contract for retirement and medical benefits provided under the California Public Employees’ Retirement System (CalPERS) and the Public Employees’ Medical
and Hospital Care Act (PEMHCA).

CONCLUSION:

The TEA agreement has been prepared within the parameters provided to Town’s negotiators by the Town Council and has been ratified by the TEA membership. It is recommended that the proposal be approved, and the Town Manager be authorized to execute the MOU.

PAGE 3 OF 3
SUBJECT: Approve a Labor Agreement Between the Town of Los Gatos and the American Federation of State, County, and Municipal Employees and Authorize the Town Manager to Execute the Memorandum of Understanding DATE: June 2, 2022
FISCAL IMPACT:

The anticipated fiscal impact for the 3% salary increase ($215,000) and 5% market increase ($290,000) in FY 2022/23 is $505,000. The anticipated fiscal impact of the $1,000 nonpensionable one-time payment and the one-time, lump sum pandemic related bonus payment of $2,500.00 in FY 2022/23 is $210,000.

The total cost impact for FY 2022/23 will be absorbed in the Town’s existing operating budget.

Funding to support the FY 2023/24 ongoing cost each year will be incorporated into the proposed future year budgets for Council approval.

ENVIRONMENTAL ASSESSMENT:

This is not a project defined under CEQA, and no further action is required.

Attachment:

1. Salary Schedule for TEA effective July 10, 2022

Town of Los Gatos TEA Classifications
Salary Schedule for Fiscal Year 2022/23
Effective July 10, 2022
Adopted by Town Council June 7, 2022
Class Code Classification Title Rate Type Range TE1 Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 4310 Account Technician Hourly 08 $36.88 $38.72 $40.66 $42.69 $44.82 $47.64 3580 Administrative Assistant Hourly 04 $30.87 $32.41 $34.03 $35.73 $37.52 $39.98 4620 Assistant Engineer Hourly 25 $49.12 $51.58 $54.16 $56.87 $59.71 $63.28 4420 Assistant Planner Hourly 12 $42.71 $44.85 $47.09 $49.44 $51.91 $55.09 4600 Associate Civil Engineer Hourly 27 $55.88 $58.67 $61.60 $64.68 $67.91 $71.89 4661 Associate Engineering Technician Hourly 14 $43.02 $45.17 $47.43 $49.80 $52.29 $55.48 4400 Associate Planner Hourly 20 $49.70 $52.19 $54.80 $57.54 $60.42 $64.02 4410 Building Inspector Hourly 24 $47.82 $50.21 $52.72 $55.36 $58.13 $61.62 4430 Code Compliance Officer Hourly 10 $42.76 $44.90 $47.15 $49.51 $51.99 $55.17 4530 Communication Dispatcher Hourly 17 $45.31 $47.58 $49.96 $52.46 $55.08 $58.41 4535 Communication Dispatcher Lead Hourly 19 $57.24 $60.10 $63.11 $66.27 $69.58 $73.64 4540 Community Services Officer Hourly 11 $36.36 $38.18 $40.09 $42.09 $44.19 $46.98 4615 Construction Project Manager Hourly 26 $53.61 $56.29 $59.10 $62.06 $65.16 $69.00 4660 Engineering Technician Hourly 13 $39.05 $41.00 $43.05 $45.20 $47.46 $50.41 4705 Environmental Programs Specialist Hourly 08 $36.88 $38.72 $40.66 $42.69 $44.82 $47.64 4200 Events and Marketing Specialist Hourly 06 $32.53 $34.16 $35.87 $37.66 $39.54 $42.10 3501 Executive Assistant Hourly 08 $36.88 $38.72 $40.66 $42.69 $44.82 $47.64 4900 IT Systems Administrator Hourly 23 $53.24 $55.90 $58.70 $61.64 $64.72 $68.54 4915 IT Technician Hourly 07 $39.91 $41.91 $44.01 $46.21 $48.52 $51.53 4810 Librarian Hourly 16 $40.81 $42.85 $44.99 $47.24 $49.60 $52.66 4830 Library Assistant Hourly 03 $30.13 $31.64 $33.22 $34.88 $36.62 $39.03 4807 Library Customer Service Specialist Hourly 01 $28.23 $29.64 $31.12 $32.68 $34.31 $36.61 4805 Library Customer Service Supervisor Hourly 08 $36.88 $38.72 $40.66 $42.69 $44.82 $47.64 4825 Library Specialist Hourly 06 $32.53 $34.16 $35.87 $37.66 $39.54 $42.10 4819 Library Tech Specialist Hourly 15 $39.55 $41.53 $43.61 $45.79 $48.08 $51.06 3181 Office Assistant Hourly 01 $28.23 $29.64 $31.12 $32.68 $34.31 $36.61 4640 Park Services Officer Hourly 11 $36.36 $38.18 $40.09 $42.09 $44.19 $46.98 4560 Parking Control Officer Hourly 01 $28.23 $29.64 $31.12 $32.68 $34.31 $36.61 4440 Permit Technician Hourly 09 $35.53 $37.31 $39.18 $41.14 $43.20 $45.94 TEA 8% Page 1 of 2 Approved 6/07/2022
ATTACHMENT 1

Town of Los Gatos TEA Classifications
Salary Schedule for Fiscal Year 2022/23
Effective July 10, 2022
Adopted by Town Council June 7, 2022
Class Code Classification Title Rate Type Range TE1 Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 4425 Planning Technician Hourly 11 $36.36 $38.18 $40.09 $42.09 $44.19 $46.98 4550 Police Records Specialist Hourly 05 $31.60 $33.18 $34.84 $36.58 $38.41 $40.91 4630 Public Works Inspector Hourly 18 $44.47 $46.69 $49.02 $51.47 $54.04 $57.32 4450 Senior Building Inspector Hourly 27 $55.88 $58.67 $61.60 $64.68 $67.91 $71.89 4525 Senior Communication Dispatcher Hourly 29 $50.76 $53.30 $55.97 $58.77 $61.71 $65.38 4831 Senior Library Page Hourly 02 $19.85 $20.84 $21.88 $22.97 $24.12 $25.91 4565 Senior Parking Control Officer Hourly 11 $36.36 $38.18 $40.09 $42.09 $44.19 $46.98 4405 Senior Planner Hourly 28 $57.24 $60.10 $63.11 $66.27 $69.58 $73.64 4610 Senior Public Works Inspector Hourly 26 $53.61 $56.29 $59.10 $62.06 $65.16 $69.00 4662 Sr. Engineering Technician Hourly 24 $47.82 $50.21 $52.72 $55.36 $58.13 $61.62 Reflects General Increase of 8%
TEA 8% Page 2 of 2 Approved 6/07/2022 Page 337
Reviewed by: Town Manager, Assistant 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: 06/07/2022
ITEM NO: 20

ADDENDUM
DATE: June 3, 2022
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Approve a Labor Agreement Between the Town of Los Gatos and the Town Employees’ Association and Authorize the Town Manager to Execute the Memorandum of Understanding
REMARKS:

Attachment 2 contains the Memorandum of Understanding (redline).

Attachment Distributed with Staff Report:

1. Salary Schedule for TEA effective July 10, 2022
Attachment Distributed this Addendum:

2. Memorandum of Understanding (redline)

10097284.1 LO007-005 -6/3/22

TOWN OF LOS GATOS
AND
LOS GATOS TOWN EMPLOYEES’ ASSOCIATION

MEMORANDUM OF UNDERSTANDING
JULY 1, 2022 – JUNE 30, 20241
ATTACHMENT 2

Town of Los Gatos Town Employees’ Association July 1, 202218 – June 30, 20241 10097284.1 LO007-005 -6/3/22
This page left intentionally blank

Town of Los Gatos Town Employees’ Association July 1, 202218 – June 30, 20241 10097284.1 LO007-005 -6/3/22

MEMORANDUM OF UNDERSTANDING

BETWEEN

THE TOWN OF LOS GATOS
AND
THE TOWN EMPLOYEES’ ASSOCIATION (T.E.A.)
THIS AGREEMENT IS ENTERED INTO AS OF JULY 1, 202218, BETWEEN THE TOWN OF LOS GATOS, HEREINAFTER REFERRED TO AS THE "TOWN", AND THE LOS GATOS “TOWN EMPLOYEES’ ASSOCIATION”, HEREINAFTER REFERRED TO AS "T.E.A."
Pursuant to Town Resolution 1974-41 of the Town of Los Gatos and Section 3500 et. seq. of the Government Code, the duly authorized representatives of the Town and T.E.A., having met and conferred in good faith concerning the issues of wages, hours, and terms and conditions of employment, as herein set forth, declare their agreement to the provisions of this Memorandum of Understanding.

FOR TOWN EMPLOYEES’ ASSOCIATION:
___________________________
Christine Crosson
Communications Dispatcher Lead
___________________________
Judy Coughlin
Library SpecialistSean Mullin
Senior Planner
___________________________
Daniel KeoughJennifer Armer
Librarian
Senior Planner
___________________________
Beca Muniz
Network AdministratorIT Systems Administrator
___________________________
Mike Weisz
Associate Civil Engineer
TOWN OF LOS GATOS:
___________________________
Laurel Prevetti
Town Manager
___________________________
Arn Andrews
Assistant Town Manager
___________________________
Lisa VelascoSalina Flores
Human Resources Director
___________________________
Donna WilliamsonLisa S. Charbonneau
Liebert Cassidy Whitmore

Town of Los Gatos Town Employees’ Association July 1, 202218 – June 30, 20241 10097284.1 LO007-005 -6/3/22
_________________________
Catherine Gildea
Librarian
___________________________
Cheryl Schiele
Employee Representation Services, Inc.

APPROVED AS TO FORM:
__________________________
Robert SchultzGabrielle Whelan
Town Attorney

Town of Los Gatos Town Employees’ Association July 1, 202218 – June 30, 20241 10097284.1 LO007-005 -6/3/22
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Town of Los Gatos Town Employees’ Association July 1, 202218 – June 30, 20241 10097284.1 LO007-005 -6/3/22
Table of Contents
Term..............................................................................................................................................................1 Goal...............................................................................................................................................................1 Section 1. Scope of Representation ............................................................................................................1 Section 2. Town Employer-Employee Relations .........................................................................................1 Section 3. Comprehensiveness of Agreement............................................................................................3 Section 4. Savings Clause ............................................................................................................................3 Section 5. Association Membership............................................................................................................4 Section 6. Non-Discrimination ....................................................................................................................5 Section 7. Employment...............................................................................................................................5 Section 8. Layoff Policy................................................................................................................................9 Section 9. Outside Employment................................................................................................................13 Section 10. Reclassification.......................................................................................................................13 Section 11. Salary and Other Compensation ............................................................................................13 Section 12. Payroll/Pay Checks.................................................................................................................18 Section 13. Holidays..................................................................................................................................18 Section 14. Insurance Programs................................................................................................................19 Section 15. Family Medical Insurance and Cash Allocation Plan ..............................................................19 Section 16. Public Employees’ Retirement System (PERS) .......................................................................21 Section 17. Benefits Accrual/Payment......................................................................................................22 Section 18. Vacation and Leaves...............................................................................................................23 Section 19. Grievance Procedure..............................................................................................................25 Section 20. Miscellaneous Issues..............................................................................................................27 Section 21. Terms Specific to Communications Dispatcher......................................................................27 Section 22. Town Vehicles.........................................................................................................................27 Section 23. Closure Days with Paid Leave Allowed...................................................................................27 Section 24. Complete Agreement.............................................................................................................28 Section 25. Successor MOU ......................................................................................................................28 Appendix A – T.E.A. Salary Schedule
Appendix B – Placeholder for New Resolution

Town of Los Gatos Town Employees’ Association July 1, 202218 – June 30, 20241 10097284.1 LO007-005 -6/3/22
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Town of Los Gatos Town Employees’ Association July 1, 202218 – June 30, 20241 1 10097284.1 LO007-005 -6/3/22

TOWN OF LOS GATOS
AND THE TOWN OF LOS GATOS EMPLOYEES’ ASSOCIATION

MEMORANDUM OF UNDERSTANDING

ON SALARIES, FRINGE BENEFITS AND WORKING CONDITIONS
Preamble
The authorized representatives of the Town of Los Gatos hereafter referred to as the "Town" and the authorized representatives of the Town of Los Gatos Employees’ Association hereafter referred to as "T.E.A." do jointly accept and agree to all the terms and conditions of employment set forth in this Memorandum of Understanding pursuant to Town Resolution 1974- 41 of the Town of Los Gatos and the Meyers-Milias-Brown Act, Section 3500 et. seq. of the Government Code.

This understanding shall apply to represented employees assigned to those classifications listed on Appendix A. When classifications are created which fall under the representation of T.E.A., this understanding shall also apply. This agreement supersedes all previous agreements between the Town and T.E.A.

The terms and conditions of employment set forth in this understanding have been discussed in good faith by the authorized representatives of the Town and the authorized representatives of the employees.T.E.A T.E.A. agrees to recommend acceptance by the employees of all terms and conditions set forth herein. Following said acceptance by T.E.A., authorized representatives of the Town agree to recommend to the Town Council that all terms and conditions set forth herein be approved by resolution. Upon adoption of said resolution, all terms and conditions so incorporated shall become effective without further action by either party.

Term
This Memorandum of Understanding shall commence on July 1, 2022 and terminate on June 30, 20241.

Goal
This Memorandum of Understanding (MOU) has been prepared in a spirit of cooperation between T.E.A. and the Town. The purpose of this MOU is to define all presently known issues concerning employment, foster a sense of team workteamwork between T.E.A. and the Town, and create conditions under which the highest quality of public service is delivered.

Section 1. Scope of Representation
Employees represented by T.E.A. are those in permanent positions in the classifications listed in Appendix A.

If it should become necessary to reduce the hours of any employee whose classification is listed in Appendix A, such employee's representation by T.E.A. will not be affected. The Town agrees to notify T.E.A. before filling a vacated represented position with an hourly employee.

Section 2. Town Employer-Employee Relations

2.1 T.E.A. Rights
The Town recognizes the employees' right to join and participate in T.E.A. T.E.A. shall provide the Town with a list of T.E.A. officers and department representatives. T.E.A. shall distribute to all new unit employees materials furnished for such purposes by T.E.A.

Upon request of any employee represented by this Agreement, a T.E.A. representative shall be present during meetings involving the individual employee in disciplinary matters. Oral reprimands and performance evaluations are not included in the above. To the extent possible, disciplinary and grievance matters shall be considered during normal working hours and with pay.

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T.E.A. representatives shall have access to its members, bulletin boards, and Town mail system on Town time.

During the term of the agreement, as long asif there is no disruption in work, up to five (5) T.E.A. members shall be allowed up to two (2) hours of release time off each month with pay for meeting and conferring, meeting and consulting, or the processing of grievances in accordance with the grievance procedure, Section 19 of this MOU. The T.E.A. President shall be allowed up to eight (8) hours for these same purposes. T.E.A. general membership meetings will continue to be held during lunch or after work. Town initiated meetings are not subject to release time limits. Such T.E.A. members shall first obtain permission from Department Directors before leaving their work or work locations.

2.2 Town Employer-Employee Relations Resolution
T.E.A. and the Town recognize the existing language in Town Resolution 1974-41, or its successor as it governs all aspects of labor relations in the Town. Any changes in Resolution 1974-41 which apply to T.E.A. will be made after meeting and consulting with T.E.A.

2.3 Employee Rights
The Town adopts, in principle, the following rights, duties and responsibilities of its employees:

2.3.1 Organize and select leaders and representatives.

2.3.2 Employee and Town actions shall be governed by the MOU, Personnel Rules and Town policies.

2.3.3 At T.E.A.'s request the Town Manager shall meet twice during the term of this Agreement with T.E.A. to discuss matters of employee interest.

2.3.4 Utilization of the Disciplinary Procedure (see Resolution 1974-41 or its successor, if any during the term of this MOU, and Ordinance No. 1593).

2.3.5 Right to request a review of his/her/their classification and receive a response to the request.

2.4 Management Rights
The rights of the Town include, but are not limited to the exclusive right to:

2.4.1 Determine the mission of its constituent departments, commissions and boards;

2.4.2 Set the standards of service;

2.4.3 Determine the procedures and standards of selection for employment and promotion;

2.4.4 Direct its employees;

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2.4.5 Take disciplinary action in accordance with adopted disciplinary procedures, recognizing the employee's right to due process;

2.4.6 Relieve its employees from duty because of lack of work or for other legitimate reasons;

2.4.7 Maintain the efficiency of governmental operations;

2.4.8 Determine the methods, means and personnel by which government operations are to be conducted;

2.4.9 Determine the content of job classifications;

2.4.10 Take all necessary action to determine when an emergency exists and to carry out its mission in emergencies including the requirement that employees work overtime. Any question regarding the existence of an emergency is determined by the Town Manager, whose decision shall be final;

2.4.11 Exercise control over its organization and the technology of performing its work;

2.4.12 Refer any question regarding implementation or interpretation of the MOU to the Town Manager or the Human Resources Director for a determination.

Section 3. Comprehensiveness of Agreement

3.1 The Town and T.E.A. agree that this Agreement represents all wages, hours, and working conditions subject to the meet and confer process and available to employees.

3.2 In the event that a local, State or Federal law significantly impacts the terms of this MOU, the Town will meet and consult with T.E.A. regarding its implementation. In some cases, this may occur after the law or rule has been adopted.

Section 4. Savings Clause
If any provision or the application of any provision of this Agreement as implemented should be rendered or declared invalid by any final court action or decree or by reasons of any preemptive legislation, the remaining sections of this Agreement shall remain in full force and effect for the duration of this Agreement.

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Section 5. Association Membership

5.1 The Town recognizes the exclusive right of T.E.A. to represent members of the bargaining unit on all matters relating to employment conditions and employer-employee relations subject to an individual employee’s right to self-representation as provided by Government Code Sections 3502 and 3503.

5.1.1 Check-Off
T.E.A. shall have the sole and exclusive right to have membership dues deducted from the pay of employees covered by this MOU.

The Town will deduct from the bi-weekly pay checkpaycheck and remit to T.E.A., the normal and regular T.E.A. membership dues. Every effort will be made to remit dues to T.E.A. within two (2) weeks of deduction from members’ wages. T.E.A. agrees to indemnify, defenddefend, and hold the Town harmless against any claims made of any nature and against any suit instituted against the Town arising from the check-off for the dues, insuranceinsurance, or benefit programs of T.E.A.

5.1.2 Maintenance of Membership
T.E.A. membership is not a mandatory condition of employment for any employee covered by this Agreement. However, any employee covered by this Agreement who is a T.E.A. member on or after the date this Agreement is ratified by the T.E.A. membership, shall continue to pay to T.E.A. those dues regularly charged members of T.E.A. in good standing while covered by this Agreement. Employees wishing to withdraw from T.E.A. membership may do so by giving written notice to T.E.A. during the thirty (30) days immediately prior to the expiration of this agreement.

Upon return from leaves of absence, the Town shall reinstate the payroll deduction of T.E.A. dues.

Enforcement of this Section shall be the responsibility of T.E.A., utilizing appropriate civil procedures. T.E.A. shall indemnify and hold the Town harmless from any and all claims, demands or suits, or any other action arising from this Section.

5.1.3 Disclosure and Reporting
T.E.A. shall provide financial documents to the Town as required by law.

5.1.4 Hold Harmless
T.E.A. shall promptly refund to the Town any amounts paid to T.E.A. in error under this Section. T.E.A. expressly agrees to indemnify and hold the Town, it’sits officers, agents, and employees harmless from any and all claims, demands, costs (including any costs incurred by the Town in defense of a lawsuit) attorneys’ fees, expenses, damages, or other monetary losses arising out of or in any way connected with the administration of Section 5. This hold harmless and Indemnity Agreement shall include but not be limited to legal actions of any sort or nature against the Town based upon or related to this Section, including but not limited to actions by employees or former employees.

5.1.5 Duty of Fair Representation
T.E.A. shall accord fair representation in all matters to all employees in the unit without regard to whether the particular employeeemployee is a member of T.E.A. The duty of fair representation shall include but not be limited to all matters related to collective bargaining, contract administration and contractual grievance processing.

5.1.6 Change of Law
In the event there is a change of law whereby any provision contained herein becomes invalid, or for any reason any provision of this Section is rendered unlawful by any published Appellate Court Decision, this Section shall be amended to comply with the change or decision in question.

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5.1.7 Non-Discrimination Against T.E.A. Activities
Town and T.E.A. agree not to discriminate against any employee for activity on behalf of, or for membership or lack thereof in T.E.A., provided however, such activity is conducted in accordance with this MOU. This shall not affect the right of the Town to discipline employees for cause in accordance with the Town Code and this MOU. It is understood that Town employees are accountable first and foremost for their duties of employment and T.E.A. activities are not to interfere with the carrying out of those obligations.

Section 6. Non-Discrimination
The Town and T.E.A. agree that all provisions of this Agreement shall be applied equally to all employees covered herein without favor or discrimination because of any protected class including but not limited to race, creed, color, ancestry, sex (sex, gender based pregnancy/childbirth), gender identity and expression, age (over 40), national origin, political or religious affiliation, military and veteran status, marital status, sexual orientation, medical condition or physical or mental disability or any other basis prohibited by applicable federal, State or Town law.

6.1 General Provision Regarding Americans with Disabilities Act (ADA).

6.1.1 Because the ADA requires accommodations for individuals protected under the Act, T.E.A. recognizes the Town's obligation to comply with all provisions of the ADA on a case–by-case basis.

6.1.2 T.E.A. recognizes that the Town has the legal obligation to meet with the individual employee to be accommodated through the interactive process before any adjustment is made in working conditions. T.E.A. will be notified of these proposed accommodations prior to implementation by the Town.

6.1.3 Any accommodation provided to an individual protected by the ADA shall not establish a past practice.

Section 7. Employment

7.1 Step Placement for New Hires
T.E.A. recognizes the sole right of the Town to determine the salary and wage rate for new hires.

7.2 Probationary Period

7.2.1 Probation for New Hires: The probationary period shall be twelve (12) months for all newly hired employees.

7.2.2 Probation for promoted employees: Promoted employees can be considered for satisfactory completion of the probationary period after twelve (12) or six (6) months at the discretion of the Department Director. Promoted probationary employees shall have all rights under this Agreement, full and complete access to the grievance procedure, including instances of suspension, demotiondemotion, and termination. Any permanent employee not satisfactorily completing the probationary period following a promotion will be reinstated to their previous classification in accordance with the Town Personnel Rules.

7.2.3 All probationary employees will be evaluated quarterly.

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7.3 Performance Evaluations
The Town-authorized employee performance evaluation document and program shall be used for all employee evaluations.

7.3.1 It is intended that performance evaluations take place at least annually as follows:
(a) For employees below top step: no later than 15 days prior to the anniversary date of the employee's date of hire or the date the employee entered their classification.
(b) For employees at top step: between June 1st and October 1st of each year.

7.3.2 Employee evaluation forms shall include a section to be checked indicating whether an employee agrees or disagrees with his/her/their evaluation.

7.3.3 All performance evaluations shall be discussed with the employee prior to the evaluation being completed. Employees shall sign their individual performance evaluations as evidence of discussion having taken place; employee signature does not imply agreement with the evaluation. An employee may attach separate written comments to his/her/their evaluation.

7.3.4 If an employee does not receive an evaluation on the date it is due and the supervisor subsequently finds that the employee would have been entitled to a merit increase as of the anniversary date, the merit increase will become effective as of the first day of the pay period in which the anniversary date occurs.

7.3.5 The Town will make every attempt to see that performance evaluations are completed in a timely manner.

7.4 Pay and Classification System

7.4.1 Consideration for advancement from step-to-step within a range shall occur at intervals of one (1) year in length effective on each anniversary date. Each employee shall receive an annual performance evaluation. This evaluation will be the basis for step advancement. Such advancement to the next step shall be authorized if the supervisor and Department Director finds that the employee is satisfactorily performing the duties of their position as reflected on the annual evaluation form.

7.4.2 If the employee’s performance is not satisfactory as determined by the supervisor’s annual evaluation, the Department Director shall deny advancement to the next step. The Department Director has the option, at their discretion, based on a recommendation by the supervisor, to recognize improving performance by granting or denying a half-step increase in lieu of denying the advancement to the next step for unsatisfactory performance.

7.4.3 If the employee’s performance is exceptional as determined by the annual evaluation of the supervisor on the performance evaluation form, the Department Director, with the approval of the Town Manager, has the discretion to grant a two-step or one-and-one-half step increase. It is intended that this be used sparingly so that it can be reserved to recognize the truly exceptional employee who is achieving journey-level status in their classification (i.e., fully capable of performing all duties of the position) and can perform at the same level as an employee with the years of experience required to achieve advancement to the new step if they had advanced one step each year.

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7.5 Promotions

7.5.1 The Town and T.E.A. agree that it is in the best interest of both the Town and its employees to foster promotion of incumbent employees. The Town will consider the qualifications of incumbent personnel prior to determining whether an open or promotional examination shall be used to fill a vacancy in T.E.A. represented classifications.

7.5.2 The Town and T.E.A. recognize the Town's sole right to determine the method for the selection of Town employees through either an open or promotional examination process. If a determination is made by the Town that a promotional examination will be used to fill a vacant position, any all qualified employees who participate in the examination process shall be allowed time off from regularly scheduled work in order toto participate in the examination process if the examination process is scheduled during the employee's normal work period. There shall be no overtime paid for participation in the examination process.

7.6 Work Day/Week

7.6.1 The normal work dayworkday is defined as no more than eight (8), nine (9), ten (10), eleven (11), or twelve (12) consecutive hours of work time, with a single lunch break. A normal work dayworkday shall be followed by a minimum of ten (10) hours off.

7.6.2 The work week is defined as forty (40) hours of work during any consecutive seven (7) day period. A minimum of one (1) fortyeight (48) hour period without scheduled work shall be provided to each employee during any consecutive seven (7) day period with the exception that employees employed in the Town Library shall not be scheduled less than two (2) consecutive days off within a seven (7) day period more than thirteen (13) times in a calendar year.

7.6.3 Flex-time work schedules consistent with the definitions of normal work dayworkday and normal work week may be assigned by the Town at its sole discretion. Flex scheduling is defined as an occasional adjustment to an employee’s work schedule which does not alter the total number of hours scheduled to be worked per week, but simply alters the time of day those hours are worked. The Town shall provide no less than fourteen (14) calendar days’ notice to affected employees regarding a change in regular work schedules. Flex-days shall be identified and approved by the Department Director and Town Manager as part of the approval of a flex-time work schedule as well as the designation of the forty-eight (48) hour period without scheduled work. (For holiday refer to 7.7.5.)

7.6.4 Employees may also make requests for temporary changes to their normal work schedule. In those cases, the employee's schedule may change with the approval of the employee's Department Director (e.g. an earlier start and end of shift or a change in the number of hours per day), so long as that change does not result in overtime liability to the Town.

7.6.5 The Town has the discretionary right to alter work schedules without notice during emergency situations.

7.7 Alternative Work Schedule
As an alternative to the normal schedule described in the above section, employees may be granted the option to participate in an Alternative Work Schedule under the following terms and conditions:

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7.7.1 An Alternative Work Schedule (AWS) is defined as:
(a) 9/80 Alternate Work Schedule: An employee schedule of nine separate work days for a total of 80 hours during a Town-designated fourteen-day pay period, for which the schedule includes working four 9-hour days and one 8-hour day in one week and working four 9-hour days in the other week. For payroll purposes, the work week will begin and end between 11:00 a.m. and at 1:00 p.m. on each alternating day off in the fourteen-day pay period. (b) 4/10 Alternate Work Schedule: An employee schedule of eight separate work days for a total of 80 hours during a Town-designated fourteen-day pay period, for which the schedule includes working four 10-hour days in one week and working four 10-hour days in the other week. For payroll purposes, the work week will begin and end at midnight Saturday.
(c) 3/12 Alternative Work Schedule: An employee schedule of seven separate work days for a total of 80 hours during a Town-designated fourteen-day pay period, for which the schedule includes 3 twelve-hour days and 1 four-hour day in one week and 3 twelve-hour days and 1 four-hour day in the other week. For payroll purposes, each employee has a designated start and end time to begin and end their work week.

7.7.2 The Department Director, with the approval of the Town Manager, has the exclusive authority to designate positions eligible to participate in the AWS. The decision of the Department Director regarding designation of eligible positions is final and is not subject to any grievance procedure.

7.7.3 The Department Director and the Town Manager have the exclusive right to terminate the AWS for T.E.A represented employees, individually and/or collectively. The Town is in no way required to meet and confer with the T.E.A. prior to terminating the AWS and termination of the AWS is not subject to any grievance procedure. Participating employees will be provided written notification at least one (1) full pay period prior to termination of the AWS.

7.7.4 Employees who elect to participate in the AWS must receive authorization from their supervisor prior to working any regularly scheduled day off.

7.7.5 An employee assigned to an AWS may use accrued vacation time, accrued compensatory time off, floating holiday or personal leave to make up the difference between the provided eight (8) hours of holiday pay and the actual number of regularly scheduled working hours on a designated holiday. For example, if a holiday falls on a day the employee is scheduled to work nine (9) or ten (10) hours, s/hethe employee shall receive eight (8) hours of holiday pay and be required to use other accrued leaves to make up the extra one (1) or two (2) hours for that day to fulfill the regularly assigned schedule. (a) If a holiday occurs on a day that an employee is not scheduled to work, s/hethe employee shall receive eight (8) hours of floating holiday, which is not subject to cash-out.
(b) An employee who elects to take a regularly scheduled AWS day off shall use accrued leave time (vacation time, accrued compensatory time off, floating holiday, or personal leave) for the number of hours they are regularly scheduled to work (nine (9) hours for 9/80 schedules and ten (10) hours for 4/10 schedules.) (c) There will be no change in the accrual schedule of maximum accrual level of any paid leaves. (d) Employees on an AWS will be provided 40 hours of Bereavement Leave, pursuant to the T.E.A. MOU. (e) A scheduled work dayworkday will include an unpaid meal break of at least one-half hour.

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(f) T.E.A.-represented employees are integral to the success of the AWS and understand the ongoing need to meet the operational needs of the Town.

7.7.6 A participating employee may request that their AWS be discontinued by providing written notification to their supervisor at least one (1) full pay period in advance of the termination of the AWS. Changes to an employee’s AWS will coincide with the beginning of a pay period.

7.8 Exempt Employees

7.8.1 “Exempt Employee” shall be defined as any executive, administrative, or professional employee as defined by Fair Labor Standards Act (FLSA) that are exempt from the provisions described in Section 11.3 (Overtime). Federal standards concerning exemptions from federal wage and hour laws shall be used as a guide in determining such exemptions.

7.8.2 Exempt Employees shall be designated by the Town.

7.8.3 Employees with the following job titles shall be designated Exempt Employees:

Senior Planner

7.8.4 Exempt Employees shall not be subject to the terms and conditions described in Sections 7.6 (Work Day/Week) and 7.7 (Alternative Work Schedule) or to any provisions of this MOU that are preempted by the Fair Labor Standards Act.

7.8.5 Notwithstanding this provision, exempt employees are eligible to work a flexible schedule including a 9/80 or 4/10 schedule subject to the approval of their supervisor.

7.8.6 The Fair Labor Standards Act (FLSA) allows exempt employees to track time on an hourly basis without disqualifying their exempt status. Therefore, exempt employees who work less than a minimum of 50% of their regularly scheduled hours in a given day shall utilize leave time for those hours not worked.

7.8.7 Exempt employees are expected to work whatever hours necessary in order to meet the performance expectations of their Supervisor or Department Head. With the express approval of the Department Head, employees may be permitted to flex their schedule within the same pay period when a work dayworkday significantly exceeds normal working hours. Flex time is not to be considered compensatory time off. The Town shall not deduct from an exempt employee’s accrued leave balances for infrequent partial day absences of less than 4 hours (other than this taken for FSLA intermittent leave purposes).

Section 8. Layoff Policy

8.1 Definitions
For the purposes of this section:

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8.1.1 Layoff: Separation of employees from the active work force due to change in the duties, change in the organization or shortage of work or funds.

8.1.2 Temporary/Seasonal/Consultant Employee: An at-will non-benefitted employee who is hired on a temporary basis, usually not to exceed 180 days.

8.1.3 Hourly Employee: An at-will non-benefitted employee who works less than 20 hours per week and not more than 1,000 hours in a fiscal year.

8.1.4 Probationary Employee: Any employee tentatively appointed to a position who is continuing the testing process to determine his/her/their fitness for duty. Probationary employees are new employees of the Town or employees under probationary status because of promotion.

8.1.5 Regular Employee: Benefited employees who successfully complete their probationary period and who regularly work a minimum of 20 to 40 hours per week.

8.1.6 Displaced Employee: A regular employee who is displaced by a more senior regular employee.

8.1.7 Service seniority: Consecutive time served (based upon number of hours worked) as a regular employee of the Town without the employee being reinstated as defined in the Town of Los Gatos Personnel Rules and Regulations, Section 10.6 "Reinstatement". Service seniority will not be earned for standby duty, overtime work, during periods of suspension without pay as a result of disciplinary action, or for non-medical leave without pay. Service Seniority for unpaid military leave will be considered in the manner prescribed by State and Federal law.

8.1.8 Classification Seniority: The length of time (based upon the number of hours worked) the employee has served as a regular employee in a classification including any time spent in a higher classification. Classification seniority will not be earned for standby duty, overtime work, during periods of suspension without pay as a result of disciplinary action, or for non-medical leave without pay. Classification Seniority for unpaid military leave will be considered in the manner prescribed by State and Federal law.

8.1.9 Higher classification: A job classification in the same classification series in which the maximum rate of pay is greater than the maximum rate of pay of the employee's current job classification.

8.2 Town - T.E.A. Cooperative Efforts

8.2.1 When the Town determines that layoffs are imminent, it shall provide written notification to T.E.A. Further, in the spirit of cooperation, the Town or the T.E.A. may request a meeting to jointly discuss alternatives to layoff, including, but not limited to, attrition or a reduction in work hours. Every effort shall be made to fill any vacant position(s) in the Town with qualified laid-off employee(s).

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8.2.2 Notwithstanding the effort to work cooperatively, the Town has the exclusive right to determine the methods, means, numbers and kinds of personnel by which services are to be provided. The Town's decision to make a reduction in force and/or layoff an employee(s) is not subject to the duty to meet and confer.

8.3 Order of Layoff & Procedure

8.3.1 Whenever it is determined that a layoff must occur within a job classification, the order of layoff shall be:
(1) temporary/seasonal at-will
(2) hourly at-will
(3) probationary
(4) regular employee

8.3.2 In each type of employment, the employee(s) with the least classification seniority in the affected job classification(s) shall be laid-off first.

8.3.3 In the event that two or more employees in a job classification have the same level of classification seniority, then the employee with the least service seniority with the Town shall be laid-off. If there is no distinction between the service seniority of two or more employees, then the employee with the lowest score on the eligibility list for the current classification shall be laid-off first.

8.4 Displacement Rights

8.4.1 An employee may displace any other employee in a lower classification which they previously occupied if they have more service seniority. For a job classification lower than that in which the employee holds regular status, seniority shall be calculated by adding: (1) classification seniority in higher classifications; (2) classification seniority in the job classification in which the employee previously worked, and (3) present time spent in the job classification in which the employee is currently working.

8.4.2 Employees who are designated for layoff or displacement may elect, in lieu of layoff or displacement, to be reassigned to a position in a lower classification. In order to displace an employee with less classification seniority, the employee noticed for layoff must have held regular status in the classification into which he/she/they is being reassigned. An employee who chooses to exercise their displacement rights must accept the salary, hours and working conditions of their new position. An employee will be allowed only one displacement.

8.4.3 An employee who exercises their displacement rights shall be paid in the new job classification the salary range step closest to the salary range step received immediately prior to displacement, providing there is no increase in salary. If the salary range step in the lower job classification is Step 5 or lower, future salary step adjustment opportunities shall be made in accordance with the Town's Personnel Rules. Time served in the job classification from which the displacement occurred shall count toward the interval required for consideration of salary step advancement.

8.4.4 If an employee with regular status is unable to displace an employee in a lower job classification in which he/she/they held a regular status, he/she/they shall be laid-off.

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8.4.5 An employee may request layoff in lieu of the opportunity to displace by notifying the Human Resources Department in writing or email within ten (10) business days after receiving the Town’s certified mailing of notice of layoff. If an employee requests layoff in lieu of displacement, he/she/they shall forfeit all recall rights except to a vacancy in the same classification from which the employee was laid-off. In this case, the employee shall be entitled to recall rights for a period of one (1) year from the effective date of the layoff.

8.4.6 A probationary employee who held regular status in his/her/their previous position, and is affected by a layoff or is displaced by an employee exercising his/her/their displacement rights, shall return to his/her/their former job classification where he/she/they held regular status. If a probationary employee does not have regular status in another job classification or has regular status in another job classification which no longer exists, he/she/they will be laid-off without any right of recall.

8.5 Seniority List
At least ten (10) business days prior to mailing a written notice of layoff, the Town shall provide a seniority list notice to affected employee(s) and the current President of the T.E.A. bargaining unit. The seniority list notice shall show the names, classification, classification seniority, service seniority, and the process for reporting discrepancies. The seniority list shall be deemed correct unless an employee or the T.E.A. notifies the Human Resources Director to the contrary in writing within ten (10) business days of the delivery and/or mailing of the seniority list.

8.6 Notification of Layoff
The Town shall send by certified mail, return receipt requested, written notice of layoff to all affected employee(s). Such notice shall be postmarked at least thirty (30) calendar days in advance of the effective date of layoff. The layoff notice shall be mailed to the employee's address currently on file in the Human Resources Department and shall be deemed appropriate notice. Any employee who is on a paid or unpaid leave shall be affected by the layoff in accordance with the provisions of this section and in the same manner as all other employees. With such notice, the employee shall be informed of the rights to which she/he is entitled and the procedure to be followed. A copy of the notice shall also be provided to the current President of T.E.A.

8.7 Re-Employment Following Layoff/Displacement

8.7.1 When a vacancy occurs in a job classification, the laid-off or displaced employee(s) eligible to return to that job classification shall be recalled in the inverse order of layoff. Employees with regular status who were laid-off or displaced are eligible to return to the job classification in which regular status is held, but shall have no recall rights to any job classification in which probationary status was held at the time of layoff or displacement.

8.7.2 Employee(s) shall be entitled to re-employment rights for a period of one (1) year from the effective date of layoff or displacement. To expedite re-employment, more than one (1) laid-off/displaced employee may be notified when an opening occurs. The laid-off/displaced employee(s) will be re-hired in inverse order of layoff. A laid-off/displaced employee shall be required to meet the qualifications of the classification to which he/she/they is recalled.

8.7.3 An employee who exercises their re-employment rights shall be paid the salary range step they received immediately prior to layoff/displacement. Future salary step adjustment opportunities shall be made in accordance with the Town's Personnel Rules.

Time served in the job classification since the most recent step increase prior to when the layoff/displacement occurred, shall count toward the interval required for consideration of salary step advancement.

8.7.4 A laid-off/displaced employee shall lose their re-employment rights for: 1) resignation; 2) retirement; 3) failure to return to work when recalled by the Town; 4) when the Town has not recalled an employee to work for a period of one (1) year; or 5) termination for cause.

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8.7.5 Laid-off Employees
The effective date of layoff shall be the employee's last day working at the Town. When a vacancy exists and employees are to be re-employed, notice of the opening(s) shall be sent by certified mail, return receipt requested, to the last known address on file in the Human Resources Department. It shall be incumbent upon the laid-off employee to advise the Human Resources Department in writing, via certified mail, return receipt requested, of any change in address. The laid-off employee shall have ten (10) business days, following the certified mailing to notify the Town in writing, via certified mail, return receipt requested, of their intent to return to work.

8.7.6 The laid-off employee shall have a reasonable period of time to return to work, not to exceed thirty (30) calendar days. If the laid-off employee fails to respond to the notice of re-employment within ten (10) business days, or fails to report to work within the reasonable time period as set forth above, he/she/they will forfeit all re-employment rights.

8.7.7 Displaced Employees
The effective date of displacement shall be the employee's last day of work in the classification from which he/she/they is displaced. When a vacancy exists and displaced employees are to be re-employed, notice of the opening(s) shall be sent by certified mail, return receipt requested, to the last known address on file in the Human Resources Department or by hand delivery. It shall be incumbent upon the displaced employee to advise the Human Resources Department in writing of any change in address. The displaced employee shall have five (5) business days, following receipt of certified mailing or hand delivery of notice, to advise the Town in writing of their intent to return to their former position. If the displaced employee fails to respond to the notice of re-employment to former position within five (5) business days of receipt of notice, he/she/they will forfeit all re-employment rights to his/her/their former position.

8.8 Fringe Benefits
Laid-off/displaced employees shall be paid accrued leaves and related benefits in accordance with this Memorandum of Understanding and applicable Town policies and rules. Employees being re-employed who received a sick leave pay off at the time of layoff/displacement, shall have the uncompensated portion of their sick leave balance restored; provided, however, that only those sick leave hours accrued after re-employment shall be applied to sick leave payoff or retiree medical related to a subsequent termination.

Section 9. Outside Employment
The Town and T.E.A. agree that outside employment of full time T.E.A.-represented employees shall be governed by California Government Code Sections 1125 -1128 and that the Town shall develop and apply regulations to assure compliance. Outside employment shall be reviewed and approved by the Department Director and Town Manager on an annual basis.

Section 10. Reclassification
T.E.A. recognizes the sole right of the Town to reclassify positions.

Section 11. Salary and Other Compensation

11.1 Equity Adjustments
In previous contracts, the Town has provided equity adjustments for classifications that were still below market median after providing across-the-board cost of living increases. Eligible classifications received market adjustment effective in the first full pay period of the new contract term.

Effective the first full pay period in July 2022, or the first full pay period after Council approval of this MOU, whichever is later, all classifications will receive an across-the-board market increase of five percent (5.0%), in addition to the cost of living increase described below in Section 11.3.

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11.2 Town Compensation Policies
Town and T.E.A. agree that this Agreement has been negotiated to provide equity increases to bring positions that were below market median to the market median. Pprior contracts were negotiated consistent with Town compensation policies. Thethe following specific Town compensation policies are:

11.2.1 Total compensation to be utilized in the analysis of all Town compensation.

11.2.2 Marketplace consideration in establishing compensation.

11.2.3 Average or above-average total compensation for all Town classifications.

11.2.4 No reduction in individual employee total compensation levels.

11.2.5 On one occasion during the term of this MOU, upon request by the UnionT.E.A., the Parties agree to meet to discuss elements of future compensation surveys for TEAT.E.A. and ways to collaborate to obtain the best market data for TEAT.E.A. classifications. The parties agree this is not a reopener and any changes to the MOU on this issue would be by mutual agreement of the parties.

11.3 Compensation
T.E.A. salaries are reflected in the salary schedules listed in Appendix A.

Effective the first full pay period in July 2022, or the first full pay period after Council approval of this MOU, whichever is later, the salary rate for all classifications shall be increased by a three percent (3%) cost of living adjustment (COLA).

Effective the first full pay period in July 2023, the salary rate for all classifications shall be increased by three percent (3%).

11.3.1 Contract Ratification Bonus
Effective the first full pay period in July 2022, or the first full pay period after Council approval of this MOU, whichever is later, all employees shall receive a one-time, non-pensionable lump sum payment of one thousand dollars ($1,000).

11.3.2 Pandemic Related Bonus
Effective the first full pay period of July 2022 or the first full pay period after Council approval of the MOU, whichever is later, all employees who worked for the Town in 2021 who are employed at the Town as of last day the pay period will receive a onetime, lump sum payment of $2,500.

11.4 Overtime

11.4.1 When necessary to perform essential work, a Department Director may require an employee to work at any time other than during regular working hours until such work is completed. Overtime is scheduled solely at the discretion of the Town.

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11.4.2 An employee directed by his/her/their Department Director or the Town Manager to work in excess of forty (40) hours in a designated work week, shall be compensated at the rate of one and one-half times the employee's regular hourly rate. Hours charged to available paid leave, shall be counted as time worked for computation of overtime payments. Compensatory time cannot be used in the pay period in which it is earned. Compensatory time off shall not be regarded as hours worked for the purposes of overtime calculation.

11.4.3 The Department Director may permit an employee to take compensatory time in lieu of paid overtime. With Department Director approval, employees shall be permitted to accumulate compensatory time only to a maximum of eighty (80) hours.

The maximum accumulated compensatory time for Communication Dispatchers only shall be one hundred (100) hours. When the maximum level of compensatory time is reached, overtime shall be paid.

11.4.4 The Town will attempt to avoid scheduling overtime that conflict with an employee's personal plans unless it cannot be avoided.

11.4.5 On or before the pay period which includes December 15 of each calendar year, an employee may make an irrevocable election to cash out up to 40 hours of CTO (in whole hour increments) which will be earned in the following calendar year at one and one half times (1.5) the employee’s base rate of pay. On the pay day for the pay period which includes Thanksgiving in the following year, the employee will receive cash for the amount of CTO the employee irrevocably elected to cash out in the prior year.

However, if the employee’s CTO balance is less than the amount the employee elected to cash out (in the prior calendar year) the employee will receive cash for the amount of CTO the employee has accrued at the time of the cash out.

11.5 Call Back

11.5.1 A minimum of three (3) hours pay or its equivalent in compensatory time off, at the rate of time and one-half, shall be guaranteed for every employee, who, after leaving his/her/their place of duty, is required to return to duty without advance notice of at least fourteen (14) calendar days.

11.5.2 There will be a three (3) hour minimum at the call back overtime rate for Town commission/council meetings which begin (2) two hours or more than either the start of or end of the employee's regularly scheduled shift. At the employee's option but with Department Director's approval, employees may flex their schedule at the straight-time rate in-lieu of the call back provision of this paragraph.

11.6 Deferred Compensation
A Town program of deferred compensation shall be available to T.E.A. represented employees. The Town makes no representation on the merit of the plan or any of the investment products or instruments which may be offered by the plan.

The responsibility for evaluating the investment options within the plan is the responsibility of the individual participant. The Town shall not be obligated to offer more than one Deferred Compensation carrier.

11.7 Out-of-Classification Pay

11.7.1 The Town and T.E.A. agree that it is the intent of Town management, whenever possible, to avoid working an employee out of classification for a prolonged period of time. Compensation for out-of-classification work shall be an additional 5% of the regular pay of the employee's permanent classification or the first step of the higher classification, whichever is greater. Out-ofClassification Pay applies only to actual time worked and does not apply to paid leaves.

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11.7.2 Employees appointed to work out-of-class will receive out-of-classification pay beginning the first day of the out-of-classification assignment. Performance of duties as a vacation relief does not automatically qualify as out-of-classification.

11.7.3 For purposes of this section, an out-of-classification assignment is defined as the full time performance of the essential functions of an authorized, funded, permanent position in another classification by a qualified employee. "Essential functions" shall be as defined in the Essential Functions section of the appropriate job specification.

11.7.4 Any employee who believes they are working out-of-class may request a review of their classification.

11.7.5 Training programs mutually agreed to by the Town and T.E.A. which are designed to enhance and/or provide career development opportunities shall not be subject to this provision.

11.8 Tuition Reimbursement Program

11.8.1 The Town will reimburse T.E.A. employees up to $3,000 per fiscal year toward the cost of books, university/school fees (except parking) and tuition.

11.8.2 The reimbursement shall be only for courses that are directly related to the employee’s position as determined by the Town Manager, including general education courses that are generally related to attainment of a job-related degree or certification.

General education courses not generally related to the employee’s position will not be eligible for reimbursement.

Reimbursement shall be taxed pursuant to State and Federal regulations.

11.8.3 Application for tuition reimbursement shall be made to the Town before the course begins. Prior to reimbursement of costs, all course work must be completed with a passing grade of “C” or equivalent when numerical score or pass/fail is given.

11.8.4 Any employee who terminates employment with the Town within one (1) year from the completion of a class or classes, for which tuition reimbursement was paid shall refund all tuition paid under this provision, unless required to attend by the appointing authority. This section shall not apply in cases involving disability, layoff, or death of the employee, or other unforeseen circumstances as approved by the Appointing Authority on a case-by-case basis.

11.9 Bilingual Incentive Pay

11.9.1 Employees filling classifications specifically requiring bilingual ability and passing the Town's certified examination shall be compensated at 2.5% above the normal compensation range for the regular classification.

11.9.2 The provision of bilingual pay will be evaluated annually in a manner prescribed by the Town, and continued or discontinued based on operational need. The decision as to whether bilingual pay will continue or be discontinued shall be made by the Town Manager, is final and is not subject to grievance or appeal. If bilingual pay is discontinued, the effective date shall be the beginning of the first full pay period in January.

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11.10 Uniform Allowance

11.10.1 An initial uniform consisting of all items on the Town-approved list shall be supplied by the Town to new Park Services Officer and Town-designated Community Services Officer and Parking Control Officer employees; thereafter the Town shall provide incumbent Park Services Officer employees with a uniform allowance of $500 per year and designated Community Service Officer and Parking Control Officer employees with a uniform allowance of $400 per year to be paid in the payroll check during January of each year.

The Town shall provide the Building Inspectors and Code Compliance Officers with five (5) polo style shirts bearing an approved Town logo in a brand and color approved by the Town. The Building Inspectors and Code Compliance Officers shall wear the supplied shirts each day at work with pants such as khakis or appropriate jeans.

11.10.2 The uniform allowance will be prorated for new employees, except that new employees shall receive a minimum of one-half (1/2) of the year's uniform allowance if hired after July 1.

In the event that the Police Department requires Communication Dispatchers to wear a uniform, the parties agree to meet and confer over the impacts and effects of this decision.

11.10.3 T.E.A. recognizes the Town's right to specify uniform and demand that employees be in proper uniform at all times.

11.10.4 In the event that an employee who does not receive a uniform allowance damages his/her/their clothing in the performance of his/her/their duties, the employee may submit a claim for reimbursement to his/her/their Department Director for the repair/replacement of damaged articles to the Town.

11.11 POST Certificate
Effective beginning in the first full pay period following ratification and approval, Dispatchers who attain the Dispatcher Advanced POST certification shall be eligible for five percent (5%) POST certificate pay. This certificate pay shall be PERSable or not PERSable as determined by PERS.

Section 12. Payroll/Pay Checks

12.1 Payroll Periods
The Town and T.E.A. agree that a biweekly payroll period shall be utilized subject to the following conditions:

12.1.1 Employee pay shall not be withheld more than seven (7) calendar days following the end of the payroll period; however, overtime may appear on the next payroll period if it is worked following the submittal of time sheets, or during a pay period with a Town holiday which requires early submittal of time sheets and early distribution (before Friday) of pay checks.

12.1.2 All Town employees shall be compensated on a biweekly basis.

12.2 Pay Checks
(a) The Town shall provide an optional direct deposit system for use by employees.

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(b) Every effort will be made to make pay checks available to employees as soon as checks are signed and ready for distribution.

Section 13. Holidays

13.1 The following shall be observed as eight (8) hour holidays for members of the unit:

January 1st (New Year's Day)
The 3rd Monday in January (Martin Luther King's Birthday) The 3rd Monday in February (President's Day)
The last Monday in May (Memorial Day)
July 19 (Juneteenth)*
July 4th (Independence Day)
The first Monday in September (Labor Day)
Thanksgiving Day
The Friday following Thanksgiving Day
December 25th (Christmas Day)
Four (4) hours each on December 24 and 31
Every day declared a holiday by the President or Governor, subject to the Mayor also proclaiming the day as a holiday. *The Juneteenth holiday will go into effect in calendar year 2023. In recognition of Juneteenth 2022, employees in all classifications except Communications Dispatchers and Park Services Officers will receive a one-time, non-pensionable $500 lump sum payment in the first full pay period in July 2022, or the first full pay period after Council approval of this MOU, whichever is later.

13.2 Holidays which fall on Saturday shall be observed on the Friday prior, and holidays which fall on Sunday shall be observed on the following Monday.

13.3 Holiday Compensation

13.3.1 Employees will receive eight (8) hours of regular pay on a Town-recognized holiday. If the employee's scheduled day off occurs on a Town- recognized holiday, the employee will receive eight (8) hours of straight-time holiday pay. In lieu of receiving eight (8) hours of straight-time holiday pay, an employee may elect to receive eight (8) hours of floating holiday hours. This provision will apply to the Juneteenth holiday beginning in calendar year 2023.

13.3.2 Employees Assigned to Work on a Holiday
Employees who are required to work on a Town-recognized holiday will receive their regular salary, plus compensation of one and one-half (1.5) times their regular rate of pay. Employees shall have the option of accepting salary or compensatory time off.

This provision will apply to the Juneteenth holiday beginning in calendar year 2023.

13.3.3 Communications Dispatchers and Park Services Officers Effective the first full pay period of July 2022 or the first full pay period after Council approval of this MOU, whichever is later, Communications Dispatchers and Park Services Officers shall receive compensation in-lieu of holiday time off equal to four and six tenths percent (4.6%) of base salary.

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Section 14. Insurance Programs

14.1 Life Insurance
Town to pay premiums on minimum coverage of $50,000 Life and $50,000 Accidental Death benefit. Additional life insurance may be purchased by the employee.

14.2 Disability Insurance
The Town will provide a Short Term Disability policy effective the 8th calendar day unless hospitalized; coverage of 60% of weekly earning up to maximum of $1,300/week for 12 weeks. Long Term Disability benefits begin on the 91st day of disability; coverage of 60% of monthly earnings up to a maximum of $6,000/month.

14.3 Workers' Compensation
Workers’ Compensation benefits shall be provided in accordance with State and Federal law. Effective the 31st day of disability, the employee may elect to supplement the State mandated benefits with the Town's Short Term/Long Term Disability Insurance (STD/LTD). STD/LTD benefits will be reduced by the amount of periodic payments the employee is entitled to through Worker's Compensation.

14.4 Liability Insurance
The Town shall continue to maintain a public officials’ liability insurance policy covering all Town employees in the execution of their official duties.

14.5 Employee Assistance Program
Premium shall be paid by the Town.

14.6 Unemployment Insurance
The Town will provide State mandated benefits as required by law.

Section 15. Family Medical Insurance and Cash In Lieu Plan Employees may participate in either the Family Medical Insurance Plan or the Cash In Lieu Plan. Employees shall select either the Family Medical Insurance Plan or the Cash In Lieu Plan annually during the Town’s open enrollment period, or at any other time permitted by the Public Employees’ Medical and Hospital Care Act (PEMHCA), such as a qualifying event (e.g., birth of a child, marriage, spouse losing medical insurance, etc.).

15.1 Health and Welfare Benefits and Rate of Town Contribution The Town contracts with CalPERS for the purpose of providing employees and their eligible dependents with medical insurance benefits. The Town’s maximum monthly contribution for each eligible active employee shall be equal to the minimum employer contribution required under PEMHCA, currently $149 per month, as may be adjusted by CalPERS from year to year.

15.2 Cafeteria Plan
During the term of the MOU, the Town agrees to maintain a Cafeteria Plan, pursuant to Section 125 of the Internal Revenue Code, for the purpose of providing eligible active employees with access to various health and welfare benefits. Benefits

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available through the Cafeteria Plan include medical insurance, dental insurance, and vision insurance.

15.3 Town Contribution to Medical Insurance
The Town will provide active employees with a medical allowance equal to 100% of the cost of the “Employee Only” Kaiser Bay AreaRegion 1 Medical Insurance Program premium offered by PEMHCA. For dependents, Town will pay 90% of the difference between Kaiser Employee Only and Kaiser level of participation (Employee Plus & One Dependent or Employee & Two+ DependentsFamily, depending on family status). If the employee chooses medical coverage under a program more expensive than Kaiser Region 1Bay Area, the employee will pay the difference between the Town-provided medical allowance and the cost of the more expensive program through payroll deduction.

The Town’s contribution towards medical insurance set forth in Section 15.1 (the PEMHCA minimum) will be deducted from the amount of contribution provided by this Section (15.3).

15.4 Dental Insurance
For employees choosing this option in lieu of the cash in lieu plan, the Town will pay 100% of the Delta Dental DPO PPO Plan premium less a $15.00 employee contribution. If the premium cost of the dental plan exceeds the Town contribution, the employee shall pay through payroll deduction the difference between the monthly premium and the amount contributed by the Town. The Town will pay 100% of the premium for employees choosing to participate in the DeltaCare USA Plan.

15.5 Vision Insurance
Vision insurance is available through Vision Service Plan (VSP). Employees shall be enrolled in the Town’s vision care health plan.

The Town shall pay for employee-only coverage. At their own cost, employees may enroll eligible dependents upon hire, during open enrollment and/or when a qualifying event occurs.

15.6 Cash In Lieu Plan
Employees have the option of choosing all available coverages or, upon providing proof of other medical coverage, may choose to opt out of the Town’s coverage and be provided with cash in lieu.

Employees who choose to receive the cash in lieu must first show proof of alternative minimum essential medical coverage for the employee and employee’s tax family (individuals for whom the employee expects to claim a personal exemption deduction).

Individual coverage, and individual coverage from Covered California does not qualify as alternative minimum essential coverage under this section. Employees must provide reasonable evidence of alternative minimum essential coverage each plan year, during open enrollment. The Town will not make the cash payment if it knows or has reason to know that the employee or tax family does not have alternative minimum essential coverage. Any amount received in cash is taxable.

Employees choosing to receive taxable cash will have the option of receiving it in two equal amounts in December and June, or the first two paychecks of each month (24 times a year).

15.6.1 Amounts
(a) Employees hired prior to November 15, 2004 shall be provided cash in lieu of medical benefits in the amount of $800 per month ($9,600 annually).
(b) Employees hired on November 15, 2004 or later shall be provided cash in lieu of medical benefits in the amount of $400 per month ($4,800 annually).

15.7 Retiree Health
The Town provides retiree health benefits in accordance with the PEMHCA for employees who qualify as eligible PERS retirees who receive a PERS retirement allowance and are PEMHCA annuitants entitled to such benefits under the PEMHCA.

The Town’s maximum monthly contribution for each eligible annuitant shall be equal to the minimum employer contribution required under the PEMHCA, currently $149 per month, as may be adjusted by CalPERS from year to year. The provisions of PEMHCA will govern medical insurance coverage for annuitants.

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15.8 Health Reimbursement Account (HRA)Retiree Health Benefit for Eligible Retirees Hired before August 22, 2018
An employee hired prior to August 22, 2018 (this includes employees , or provided with a final offer and confirmation of employment prior to August 22, 2018)ratification and approval of this agreement, is eligible for HRA retiree health benefits in accordance with this Section.

15.8.1 The employee completed at least five years of continuous service with the Town; and

15.8.2 The employee retired from the Town taking a service or disability retirement from CalPERS as a retiree receiving a PERS retirement allowance and is a PEMHCA annuitant; and,

15.8.3 The employee must actually draw a CalPERS pension within ninety (90) days of separation from the Town, provided the employee remains with the Town’s health plan through COBRA.

15.8.4 The amount of the supplemental retiree health benefit allowance will be equal to 100% of the cost of the premium for Kaiser Bay AreaRegion 1 Retiree Only and 90% of the difference between the Kaiser Bay AreaRegion 1 Retiree Only and Kaiser Bay AreaRegion 1 Retiree & Plus One Dependent level of participation.. For the Retiree & Two Plus DependentsOne or More Plan, the Town will pay $1,947.16 per month, as of the 2022 plany year. This amount will increase by $100.00 each year until it is equal to the active employee contribution. dependents, the Town will pay $1,443.45 per month towards a Retiree Plus One plan and $1,547.16 per month towards a Retiree Plus One or More plan, as of August 22, 2018. This amount will increase by $100.00 each year until it is equal to the active employee contribution.

15.8.5 The Town’s contribution towards retiree health insurance set forth in Section 15.7 (the PEMHCA minimum) will be deducted from the amount of contribution provided by this Section (15.8.4).

15.8.6 Employees retiring on or after February 1, 2016 and upon becoming eligible for Medicare will cease to receive any retiree health benefit allowance under this Section (15.8.4) and will become eligible for Supplemental Medicare equal to the cost of Kaiser Senior Advantage Bay AreaRegion 1 Medicare rates up to a maximum of 100% Retiree Only, 90% for Retiree & Plus One Dependent or 90% for Retiree & Two Plus One or MoreDependents less the amount of the employee contribution provided under Section 15.7 (the PEMHCA minimum). This benefit is available to the eligible retired employee only after he or she has reached the age of 65 and is Medicare eligible or as otherwise specified by law.

15.8.7 The benefits described by this Section (15.8) will be provided to annuitants through CalPERS by means of a Health reimbursement Account (HRA).

Section 16. Public Employees’ Retirement System (PERS)

16.1 Retirement Formulas

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16.1.1 Effective December 16, 1992, the Town's contract with the Public Employees’ Retirement System (PERS) provided the 2% at 55 retirement formula for eligible Miscellaneous Town employees (regular employees).

16.1.2 Tier 1
Effective July 1, 2008, the Town amended its contract with PERS to include a 2.5% at 55 PERS retirement benefit (Gov’t Code 21354.4).

Employees in Tier 1 shall:

Contribute 8% towards the employee share of the PERS retirement benefit.

Use PERS single highest year compensation.
- Be eligible for PERS Fourth Level 1959 Survivor Benefits.

16.1.3 Tier 2
For employees hired on or after September 15, 2012, including employees hired after January 1, 2013 who do not meet the definition of “new member” under Gov’t Code 7522.04(f) the Town will provide Tier 2 retirement benefits to include the 2% at 60 retirement benefit (Gov’t Code 21353).

Employees in Tier 2 shall:

Contribute 7% towards the employee share of the PERS retirement benefit. - Use PERS 36-month final average compensation.
- Be eligible for PERS Fourth Level of 1959 Survivor benefits.

16.1.4 Tier 3
For employees hired on or after January 1, 2013, who meet the definition of new member under Gov’t Code 7522.04(f), the Town will provide Tier 3 benefits to include the 2% at 62 retirement benefit.

Employees in Tier 3 shall:

Contribute an amount that is equal to one half (1/2) the normal cost of his/herhis/her/their CalPERS pension, or the current contribution rate of similarly situated employees, whichever is greater (Gov’t Code 7522.30(c)). - Use the 36-month final average compensation (Gov’t Code 20037). - Be eligible for PERS Fourth Level of 1959 Survivor benefits.

16.2 The Town has adopted a Resolution materially the same as that recommended by the Public Employees’ Retirement System to implement the provisions of 414 (h)(2) of the Internal Revenue Code (IRC). T.E.A. accepts the terms of this Resolution and acknowledges that this Resolution will apply to all current and future members of T.E.A.

Section 17. Benefits Accrual/Payment
There shall be no accrual or payment of benefits during unauthorized leave, suspension without pay, or leave without pay except as mandated by the state or federal law.

Section 18. Vacation and Leaves

18.1 Vacation Scheduling
All vacation scheduling is subject to the approval of the Town. Employees are required to request time off in advance. The earlier requests are submitted, the greater likelihood the request will be honored.

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Every attempt will be made by the Town to honor pre-approved vacations. If a pre-approved vacation is canceled due to the scheduling needs of the Town, the Town will reimburse the employee for verified deposits for non-reimbursable reservations.

All verifications must be submitted prior to the vacation formally being canceled.

18.2 Vacation Accrual
All employees hired by the Town and represented by T.E.A. during the term of this agreement shall accrue vacation hours as follows:
0 to 36 months 10 days per year (3.08 hours per pay period) 37 to 60 months 16 days per year (4.92 hours per pay period) 61 to 120 months 21 days per year (6.46 hours per pay period) 121 to 180 months 23 days per year (7.08 hours per pay period) 181 months & over 25 days per year (7.70 hours per pay period)

18.2.1 Maximum accrual shall be 310 hours. If an employee has reached the maximum accrual level, no more vacation will be accrued until the accrual level is reduced below the maximum amount.

18.2.2 Vacation Cash-Out
On or before the pay period which includes December 15 of each calendar year, an employee may make an irrevocable election to cash out up to one hundred and sixty (160) hours of accrued vacation (in whole hour increments) which will be earned in the following calendar year at the employee’s base rate of pay. On the pay day for the pay period which includes Thanksgiving in the following year, the employee will receive cash for the amount of the vacation the employee irrevocably elected to cash out in the prior year. However, if the employee’s vacation leave balance is less than the amount the employee elected to cash out in the prior calendar year the employee will receive cash for the amount of vacation leave the employee has accrued at the time of the cash out.

18.3 Sick Leave
Sick leave shall accumulate at the rate of eight (8) hours per month (3.70 hours per pay period); to a maximum of one-thousand (1,000) hours. The Town may require T.E.A. represented employees to provide a doctor's statement as proof of illness for any use of sick leave beyond one (1) working day.

18.4 Sick Leave Cash-Out Program
This program applies only to employees hired before August 22, 2018 or provided with a final offer confirmation of employment prior to ratification and approval of this agreement.

18.4.1 Employees who terminate employment with the Town, or once a year in the first payroll check of December, following compliance with this contract and the cash-out process for active employees may cash-out their accumulated sick leave as follows:
1 - 59 months of service at 25%
60 - 119 months of service at 37.5%
120 months or more of service at 50%

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Cash out process for active employees: On or before the pay period which includes December 15 of each calendar year, an employee may make an irrevocable election to cash out sick leave in accordance with the above amounts and the requirements of section 18.4.2 below. Eligible cash out hours will be cashed out in whole hour increments which will be earned in the following calendar year at the employee’s base rate of pay. In the first payroll check of December in the following year, the employee will receive cash for the amount of the eligible sick leave the employee irrevocably elected to cash out in the prior year. However, if the employee’s sick leave balance is less than the amount the employee elected to cash out in the prior calendar year the employee will receive cash for the amount of sick leave the employee has accrued at the time of the cash out contingent upon compliance with 18.4.2.

18.4.2 In order to be eligible for the sick leave cash-out program, an employee must have a sick leave accrual balance of at least 150 hours after the annual cash-out. Employees working less than full-time shall have the 150 hour balance pro-rated, based on hours worked. Employees who terminate with a sick leave balance of at least 150 hours may cash-out their entire balance pursuant to the schedule above.

18.4.3 All employees hired prior to November 15, 2004 who retire may convert up to 100% of this accumulated sick leave to a dollar equivalent at their hourly rate of pay at the time of retirement. This amount shall be held in an account. The employee's portion of medical payment will be withheld from their monthly retirement payment by PERS. The Town agrees to pay the retiree quarterly on the first pay period of January, April, July, and October of each year after retirement. The first payment will be prorated to the nearest quarter. The retiree's portion of medical payments will be paid from this account by the Town until all monies are depleted from the account or the retiree dies, whichever occurs first.

18.4.4 This account will not accrue interest and will not be paid in cash to the retiree or any beneficiaries. The retiree shall be responsible for 100% of their share of future medical insurance payments once the account is exhausted.

18.5 Personal Leave
Twenty-four (24) hours will be available per calendar year. Personal leave may not be accumulated from year-to-year nor is it subject to cash-out at any time.

Exempt employees are eligible for an additional twenty-four (24) hours of personal leave for (a maximum of forty-eight (48) hours) each calendar year.

18.6 Medical/Maternity/FMLA/CFRA
The Town recognizes that State Government Code 12945 requires the recognition of maternity as a bona fide non-job-related disability with applicable leave benefits. The Town also recognizes State Government Code 12945.2 and Federal Government Code 29 regarding the Family and Medical Leave Act. The Town may, at its discretion, approve leave beyond the specific amount provided by the law.

18.7 Bereavement Leave
A maximum of forty (40) hours is available for death of each member of the immediate family. Immediate family is defined as parent, step-parent, parent in law, spouse/domestic partner, child, step-child, foster child, dependent, sibling, grandparent, step-grandparent, and grandchild.

18.8 Disaster Leave
Leave will be available for employees for disasters declared by Federal, State, County, or Town officials if those disasters affect all or a portion of the area within twenty (20) miles of Town Hall. Leave is subject to scheduling by the Town. Employees shall be allowed to charge time off to any accrued leaves.

Town of Los Gatos Town Employees’ Association July 1, 202218 – June 30, 20241 25 10097284.1 LO007-005 -6/3/22

18.9 Military Leave
Military leave and benefits shall be granted in accordance with State and Federal law, including the continuation of employee salary and benefits.

18.10 Jury Duty
Employee salary and benefits are to be continued during periods of Court-assigned jury duty. If an employee receives compensation from the Courts, the employee shall return to the Town all compensation received for jury duty, except mileage or travel related compensation.

18.11 Leave Without Pay

18.11.1 Leave without pay shall be subject to approval of the Department Director.

18.11.2 An employee who is on leave without pay for more than two (2) pay periods shall not earn any employment benefits (including, but not limited to such benefits as vacation leaves, medical benefits, sick leaves, retirement credits for time employed or seniority entitlement of any kind) for the duration of such leave. An employee who is on leave without pay for more than (2) pay periods will have the ability to continue medical, dental and vision coverage at their own expense in accordance with the Town's Administrative Policy on benefit retention.

18.11.3 Vacation, sick leave or time worked shall not be used intermittently during an extended leave to interrupt a determination that an employee is on leave with no pay. In accordance with State Government Code 12945 and 12945.2 and Federal Government Code 29, Section 26.01, 26.54, no employee on maternity or family leave will be disadvantaged with respect to seniority entitlement.

18.12 Leave Balances

18.12.1 Vacation, and compensatory time off will be paid off upon resignation, retirement, or dismissal at 100% value effective the last full work-day with the Town. This will terminate the employee's status as an employee of the Town. Sick leave shall be cashed out per Section 18.4.1.

18.12.2 In the event of an employee's death, accrued vacation and compensatory time leave balances shall be paid to the employee's estate. Sick leave shall be paid to the estate per Section 18.4.1.

18.13 Catastrophic Time Bank
If an employee, or an employee's spouse/domestic partner, or child becomes catastrophically ill or injured, the employee may request that a catastrophic time bank be established. If the employee is not capable, a Department Director, after consulting with and receiving approval from an employee’s family member, may request that a catastrophic time bank be established. The request shall be in writing and shall be directed to the Human Resources Director. The bank will enable other employees to donate accrued CTO or vacation to the requesting employee. All donations must be made in writing on a form prescribed by the Town and shall be limited to no more than four (4) hours per donation, in one (1) hour increments. Time donated will be calculated at the donor’s hourly rate of pay. Donations to an established catastrophic time bank are final and shall not be returned to the donor.

Town of Los Gatos Town Employees’ Association July 1, 202218 – June 30, 20241 26 10097284.1 LO007-005 -6/3/22
Section 19. Grievance Procedure
Grievances shall be defined as alleged violations of this Agreement or disputes regarding interpretations, application, or enforcement of this Agreement.

No act or activity which may be grievable may be considered for resolution unless a grievance is filed in accordance with the procedure contained herein within thirty (30) calendar days of the date the grievable activity occurred or the date the employee could reasonably have known such activity occurred.

19.1 The parties agree that all grievances will be processed in accordance with the following procedure:

Step 1
Any employee who has a grievance shall first try to get it settled informally through discussion with his/her/their immediate supervisor without undue delay. Every effort shall be made to find an acceptable solution at the lowest possible level of supervision. If the employee is not satisfied with the informal resolution, then a formal grievance must be filed within thirty (30) calendar days of the date the grievable activity occurred or the date the employee could reasonably have known such activity occurred.

Step 2
If, after such discussion the employee does not believe the grievance has been satisfactorily resolved, he/she/they may file a formal appeal in writing to his/her/their Department Director within ten (10) calendar days after receiving the informal decision of his/her/their immediate supervisor.

The Department Director receiving the formal appeal shall enter his/her/their written decision within ten (10) calendar days after receiving the appeal.

Step 3
If, after receipt of the written decision of the Department Director the employee is still dissatisfied, he/she/they may appeal the decision of the Department Director to the Town Manager. Such appeal shall be made by filing a written appeal to the Town Manager within fourteen (14) calendar days after receipt of the written decision of the Department Director. The Town Manager shall review the decision of the Department Director, and render his/her/their decision within thirty (30) calendar days after the appeal is made.

Step 4
If, after receipt of the written decision of the Town Manager the employee is still dissatisfied, he/she/they may appeal the decision of the Town Manager to the Personnel Board. Such appeal shall be made by filing a written appeal to the Chair of the Personnel Board within fourteen (14) calendar days after receipt of the written decision of the Town Manager.

The Personnel Board shall establish a hearing date within thirty (30) calendar days of receipt of the written appeal. The Personnel Board shall conduct a closed hearing giving opportunity for presentation by the employee or his/her/their representative and the Town Manager. The Personnel Board shall render a written decision within thirty (30) calendar days after the appeal is made. If, after receipt of the written decision of the Personnel Board, the employee is still dissatisfied, he/she/they may appeal the decision of the Personnel Board to the Town Council. Such appeal shall be made by filing a written appeal with the Mayor. The Mayor shall schedule a closed hearing with the Town Council within thirty (30) calendar days after receipt of the appeal. At this hearing, the employee and the Town Manager may make presentations. The Town Council decision shall be final. The Town Council shall render a decision within thirty (30) calendar days after the hearing. An open hearing may be conducted by the Personnel Board or Town Council with mutual consent of the Town and person(s) filing the grievance.

Town of Los Gatos Town Employees’ Association July 1, 202218 – June 30, 20241 27 10097284.1 LO007-005 -6/3/22

19.2 The time limitations for filing and responding to grievances may be waived or extended by written mutual agreement of the parties. If either party to the grievance so requests, an informal hearing shall be conducted at the Department Director or Town Manager appeal levels. Employees may be represented by counsel or other person at any stage in the grievance process.

19.3 If the employee does not receive a response from the supervisor or Department Director within the time limits specified in steps 1 and 2 above, the grievance will proceed for review to the next level in the grievance procedure.

Section 20. Miscellaneous Issues

20.1 Benefit Application
Employee benefits shall be prorated to a level equal to the regularly scheduled hours. For example, an employee working a regular schedule of 32 hours per week will earn 80% of the benefits provided to an employee working a regular schedule of 40 hours per week.

20.2 Personnel Rules
It is the Town’s intent to make the Personnel Rules readily available. In this regard the Rules will be available on line and in the Town Clerk’s Office.

20.3 Disciplinary Rules
In regard to Disciplinary Rules, refer to Sections 12 and 13 of the Town’s Personnel Rules.

20.4 Mileage Reimbursement
Employees using personal vehicles on official Town business shall be reimbursed at the mileage rate established by the I.R.S.

Private vehicles used for Town business shall comply with all applicable California Vehicle Code Sections commencing with Section 16430 through 16484 pertaining to "Insurance or Proof of Ability to Respond to Damages." Section 21. Terms Specific to Communications Dispatcher Training pay: Communication Dispatchers assigned to train and evaluate newly hired Communication Dispatchers will receive a premium pay of 5% for the actual hours worked while providing authorized training.

In addition, sections in the agreement specific to Communications Dispatchers include (1) Overtime section 11.4.3 and (2) Holiday Compensation section 13.3.3.

Section 22. Town Vehicles
Town vehicles are not to be taken home.

Section 23. Closure Days with Paid Leave Allowed
T.E.A. understands that the Town Manager, for budgetary constraints or for operational efficiency, may close all nonessential services and permit employees to use paid leaves. For example, the Town Manager may institute the closure of nonessential services between the Christmas and New Years’ holidays. The Town Manager shall provide at least six-months advance notice prior to making the decision to institute closure of non-essential services between the Christmas and New Years’ holidays.

However, nothing in this section shall restrict the Town Manager’s right to make the decision to institute the closure of nonessential services between Christmas and New Year’s with less notice where unforeseen circumstances occur.

In regards to these closure days:

Town of Los Gatos Town Employees’ Association July 1, 202218 – June 30, 20241 28 10097284.1 LO007-005 -6/3/22

23.1 Employees performing essential services and scheduled to work on the Closure Days will receive straight-time pay for hours worked, unless the hours worked represent overtime (more than forty [40] hours per week).

23.2 At their election, employees who are not scheduled to work may utilize accrued paid vacation, compensatory time off, or personal leave to cover the closure hours. Leave must be requested in the manner provided in the MOU. Employees who use paid leave will accrue sick leave, vacation and CalPERS credit while on leave.

23.3 While employees have the option to utilize paid vacation, compensatory time off, or personal leave, they are also permitted to take leave without pay (LWOP). Employees who take LWOP will maintain their health, life and disability insurance, as well as any medical cash allocations. Employees who utilize LWOP will not accrue sick leave, vacation or CalPERS credit while on LWOP.

23.4 If an employee requests to work during the closure days due to hardship (e.g., the employee is out of leave and is financially unable to take time without pay), the Department Director will first try to assign the employee in their own department. If a suitable assignment is not available in the employee’s own department, the Town Manager maintains the management right to place the employee in an alternative assignment for the closure period.

If an employee requests to work during the closure days the Department Director will approve the request to work in their regular assignment unless there is a concern about the safety of the employee that cannot be adequately addressed. However, the Town Manager maintains the management right to place the employee in an alternative assignment for the closure period.

23.5 The Town Manager maintains the management right to determine essential and nonessential services.

Section 24. Complete Agreement
The parties acknowledge that during the negotiations that resulted in this MOU, each had the unlimited right and opportunity to make proposals with regard to the terms and conditions of employment, and that the understandings and agreements contained in this MOU were arrived at after that full opportunity. This MOU may only be amended during its term by the parties' mutual agreement in writing unless compelled by State or Federal law. This MOU is intended to encompass all matters subject to meeting and conferring between the Town and T.E.A., and it supersedes and replaces any and all past practices, whether directly referred to or otherwise addressed in any way in this MOU.

Section 25. Successor MOU
The Town and T.E.A. agree that an initial meet and confer regarding the negotiations for a successor MOU shall take place no later than 120 days prior to the termination date of the current Memorandum of Understanding.

The Town will pay for training in interest-based bargaining for the negotiating teams and to provide a neutral third-party facilitator, mutually agreed to by the parties.

Town of Los Gatos TEA Classifications
Salary Schedule for Fiscal Year 2022/23
Effective July 10, 2022
Adopted by Town Council June 7, 2022
Class Code Classification Title Rate Type Range TE1 Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 4310 Account Technician Hourly 08 $36.88 $38.72 $40.66 $42.69 $44.82 $47.64 3580 Administrative Assistant Hourly 04 $30.87 $32.41 $34.03 $35.73 $37.52 $39.98 4620 Assistant Engineer Hourly 25 $49.12 $51.58 $54.16 $56.87 $59.71 $63.28 4420 Assistant Planner Hourly 12 $42.71 $44.85 $47.09 $49.44 $51.91 $55.09 4600 Associate Civil Engineer Hourly 27 $55.88 $58.67 $61.60 $64.68 $67.91 $71.89 4661 Associate Engineering Technician Hourly 14 $43.02 $45.17 $47.43 $49.80 $52.29 $55.48 4400 Associate Planner Hourly 20 $49.70 $52.19 $54.80 $57.54 $60.42 $64.02 4410 Building Inspector Hourly 24 $47.82 $50.21 $52.72 $55.36 $58.13 $61.62 4430 Code Compliance Officer Hourly 10 $42.76 $44.90 $47.15 $49.51 $51.99 $55.17 4530 Communication Dispatcher Hourly 17 $45.31 $47.58 $49.96 $52.46 $55.08 $58.41 4535 Communication Dispatcher Lead Hourly 19 $57.24 $60.10 $63.11 $66.27 $69.58 $73.64 4540 Community Services Officer Hourly 11 $36.36 $38.18 $40.09 $42.09 $44.19 $46.98 4615 Construction Project Manager Hourly 26 $53.61 $56.29 $59.10 $62.06 $65.16 $69.00 4660 Engineering Technician Hourly 13 $39.05 $41.00 $43.05 $45.20 $47.46 $50.41 4705 Environmental Programs Specialist Hourly 08 $36.88 $38.72 $40.66 $42.69 $44.82 $47.64 4200 Events and Marketing Specialist Hourly 06 $32.53 $34.16 $35.87 $37.66 $39.54 $42.10 3501 Executive Assistant Hourly 08 $36.88 $38.72 $40.66 $42.69 $44.82 $47.64 4900 IT Systems Administrator Hourly 23 $53.24 $55.90 $58.70 $61.64 $64.72 $68.54 4915 IT Technician Hourly 07 $39.91 $41.91 $44.01 $46.21 $48.52 $51.53 4810 Librarian Hourly 16 $40.81 $42.85 $44.99 $47.24 $49.60 $52.66 4830 Library Assistant Hourly 03 $30.13 $31.64 $33.22 $34.88 $36.62 $39.03 4807 Library Customer Service Specialist Hourly 01 $28.23 $29.64 $31.12 $32.68 $34.31 $36.61 4805 Library Customer Service Supervisor Hourly 08 $36.88 $38.72 $40.66 $42.69 $44.82 $47.64 4825 Library Specialist Hourly 06 $32.53 $34.16 $35.87 $37.66 $39.54 $42.10 4819 Library Tech Specialist Hourly 15 $39.55 $41.53 $43.61 $45.79 $48.08 $51.06 3181 Office Assistant Hourly 01 $28.23 $29.64 $31.12 $32.68 $34.31 $36.61 4640 Park Services Officer Hourly 11 $36.36 $38.18 $40.09 $42.09 $44.19 $46.98 4560 Parking Control Officer Hourly 01 $28.23 $29.64 $31.12 $32.68 $34.31 $36.61 4440 Permit Technician Hourly 09 $35.53 $37.31 $39.18 $41.14 $43.20 $45.94 TEA 8% Page 1 of 2 Approved 6/07/2022
ATTACHMENT 1

Town of Los Gatos TEA Classifications
Salary Schedule for Fiscal Year 2022/23
Effective July 10, 2022
Adopted by Town Council June 7, 2022
Class Code Classification Title Rate Type Range TE1 Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 4425 Planning Technician Hourly 11 $36.36 $38.18 $40.09 $42.09 $44.19 $46.98 4550 Police Records Specialist Hourly 05 $31.60 $33.18 $34.84 $36.58 $38.41 $40.91 4630 Public Works Inspector Hourly 18 $44.47 $46.69 $49.02 $51.47 $54.04 $57.32 4450 Senior Building Inspector Hourly 27 $55.88 $58.67 $61.60 $64.68 $67.91 $71.89 4525 Senior Communication Dispatcher Hourly 29 $50.76 $53.30 $55.97 $58.77 $61.71 $65.38 4831 Senior Library Page Hourly 02 $19.85 $20.84 $21.88 $22.97 $24.12 $25.91 4565 Senior Parking Control Officer Hourly 11 $36.36 $38.18 $40.09 $42.09 $44.19 $46.98 4405 Senior Planner Hourly 28 $57.24 $60.10 $63.11 $66.27 $69.58 $73.64 4610 Senior Public Works Inspector Hourly 26 $53.61 $56.29 $59.10 $62.06 $65.16 $69.00 4662 Sr. Engineering Technician Hourly 24 $47.82 $50.21 $52.72 $55.36 $58.13 $61.62 Reflects General Increase of 8%
TEA 8% Page 2 of 2 Approved 6/07/2022 Page 375
PREPARED BY: Salina Flores
Human Resources Director
Reviewed by: Town Manager, Assistant 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: 06/07/2022
ITEM NO: 20

DESK ITEM
DATE: June 2, 2022
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Approve a Labor Agreement Between the Town of Los Gatos and the Town Employees’ Association and Authorize the Town Manager to Execute the Memorandum of Understanding
REMARKS:

Attachment 3 contains public comments received between 11:00 a.m., Monday, June 6, 2022, and 11:01 a.m. Tuesday, June 7, 2022.

Attachment Previously Received with the Staff Report:

1. Salary Schedule for TEA effective July 10, 2022
Attachment Previously Received with the Addendum:

2. Redlined AFSCME MOU
Attachment Received with this Desk Item:

3. Public comments received between 11:00 a.m., Monday, June 6, 2022, and 11:01 a.m. Tuesday, June 7, 2022.

ATTACHMENT 3
From: Phil Koen
Sent: Tuesday, June 07, 2022 10:59 AM
To: Rob Rennie <[email protected]>; Matthew Hudes <[email protected]>; Mary Badame <[email protected]>; Maria Ristow <[email protected]>; Marico Sayoc <[email protected]>
Cc: Laurel Prevetti <[email protected]>; Shelley Neis <[email protected]>; Arn Andrews <[email protected]>; jvannada; Rick Van Hoesen; Lee Fagot; Catherine Somers Subject: Agenda items #19 - #22
Dear Honorable Mayor and Members of the Town Council,
The Los Gatos Community Alliance respectfully requests that Agenda items #19 through #22 be pulled from tonight’s consent calendar to allow for public discussion and increased transparency. We acknowledge that the terms of the various labor agreements are the result of a long negotiation process and want to thank all parties for their efforts in finding a solution. We want to also thank the Town Council for their hard work on this matter.

Issue
The reason for pulling these items revolves around the lack of transparency in the Staff report. While we understand labor negotiations are confidential and therefore little was disclosed during the process, it is then extremely important that the Staff report be comprehensive and fully transparent in detailing how the Town arrived at these results. This is particularly important when the only benchmark the public had regarding possible increases in salary and benefit expenditures for FY 23 was what was included in the preliminary budget. Clearly, what is being approved tonight is materially greater than what was in the preliminary budget.

Request for more information
The LGCA requests that Staff disclose the following additional information prior to any vote on agenda items #19 through #22:

1. What will be the total salary and benefit expenditures for FY 23 as previously reported on Schedules C-8, C-9, C-10, C-11, C-12, and C-13 after taking into effect all salary adjustments recommended in Agenda items #19-#22?

2. How is the $2,318,733 (increases to negotiated salary increases) being funded? Since the proposed FY 23 budget did not have an operating surplus, where are the additional sources of funds coming from to cover this increase? Please be specific.

3. A portion of the $2,318,733 expenditures are one-time in nature. How much are the “one- time payments” and how much will be recurring expenditures beyond FY 23?

4. Please disclose the initial offer letter from the Town to each of the bargaining units so the public has full transparency to the negotiating process. For sake of clarity, the City of San Jose releases to the public all correspondence between bargaining units once agreements have been reached and voted on by the bargaining units. It appears we are at that point.

5. If the Town does not use $902,579 of the OPEB 115 Trust Assets to “further balance the budget” what other funds could the Town tap to provide the required source of funding? Was this discussed and approved by the Town Council Trust Fund Committee? Thank you.

Phil Koen
LGCA

PREPARED BY: Salina Flores
Human Resources Director
Reviewed by: Town Manager, Assistant 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: 06/07/2022
ITEM NO: 21
DATE: June 2, 2022
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Approve a Labor Agreement Between the Town of Los Gatos and the American Federation of State, County, and Municipal Employees and Authorize the Town Manager to Execute the Memorandum of Understanding RECOMMENDATION:

Staff recommends that the Town Council approve a Labor Agreement between the Town of Los Gatos and the American Federation of State, County, and Municipal Employees (AFSCME) and authorize the Town Manager to execute the Memorandum of Understanding.

BACKGROUND:

In accordance with the Town’s Employer-Employee Relations Resolution No. 1974-41, representatives of the Town and AFSCME have met and conferred in good faith and within the scope of representation in an effort to reach agreement for a successor Memorandum of Understanding (MOU). The revised agreement will be distributed and posted on June 3, 2022 as an Addendum to this report. The MOU is a labor agreement that identifies specific terms and conditions of employment applicable to the employees represented by that agreement.

DISCUSSION:

The Town’s current MOU with AFSCME expires on June 30, 2022. In March 2022, the Town and AFSCME began negotiating for a successor agreement. A tentative agreement for a twoyear term was reached in April and AFSCME membership ratified on April 29, 2022.

PAGE 2 OF 3
SUBJECT: Approve a Labor Agreement Between the Town of Los Gatos and the American Federation of State, County, and Municipal Employees and Authorize the Town Manager to Execute the Memorandum of Understanding DATE: June 2, 2022
DISCUSSION (continued):

Major provisions of the agreement include and are not limited to:

1. Term: July 1, 2022 to June 30, 2024

2. Salary:
a. Effective the first full pay period of July 2022 (effective July 10, 2022), or the first full pay period after Council approval, whichever is later, the Town will provide a 3% cost of living adjustment (COLA) and a 4.5% market increase for a total of

7.5%. The market increase is intended to bring AFSCME classifications to or near market median.
b. Effective in the first full pay period of July 2023, the Town will provide a 3% salary increase.

3. Pandemic Related Bonus: Effective the first full pay period of July 2022, or the first full pay period after Council approval, whichever is later, all employees who worked for the Town in 2021, who are employed at the Town as of the last day of the pay period will receive a one-time, lump sum payment of $2,500.

4. Juneteenth Holiday: Effective after Council approval of this MOU, June 19th (Juneteenth) shall be added to Section 29 of the MOU as an observed paid eight (8) hour holiday for employees represented by AFSCME.

5. Tuition Reimbursement: The Town will reimburse AFSCME employees up to $3,000 per fiscal year toward the cost of books, university/school fees (except parking) and tuition for courses directly related to the employee’s position as determined by the Town Manager. Prior to reimbursement, all course work must be completed with a passing grade of “C” or equivalent
The Town and AFSCME have also agreed to various MOU language updates. The MOU will be distributed and posted on June 3, 2022 as an Addendum to this report. These updates clarify existing language, delete obsolete language, and ensure compliance related to the Town’s contract for retirement and medical benefits provided under the California Public Employees’ Retirement System (CalPERS) and the Public Employees’ Medical and Hospital Care Act (PEMHCA).

CONCLUSION:

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 proposal be approved, and the Town Manager be authorized to execute the MOU.

PAGE 3 OF 3
SUBJECT: Approve a Labor Agreement Between the Town of Los Gatos and the American Federation of State, County, and Municipal Employees and Authorize the Town Manager to Execute the Memorandum of Understanding DATE: June 2, 2022
FISCAL IMPACT:

The anticipated fiscal impact for the 3% cost of living increase ($46,000) and, 4.5% market increase ($133,000) in FY 2022/23 is $179,000. The anticipated fiscal impact of $1,000 nonpensionable one-time payment and the one-time, lump sum pandemic related bonus payment of $2,500 in FY 2022/23 is $38,500.

FISCAL IMPACT (continued):

The total cost impact for FY 2022/23 will be absorbed in the Town’s existing operating budget.

Funding to support the FY 2023/24 ongoing cost each year will be incorporated into the proposed future year budgets for Council approval.

ENVIRONMENTAL ASSESSMENT:

This is not a project defined under CEQA, and no further action is required.

Attachment:

1. Salary Schedule for AFSCME effective July 10, 2022

Town of Los Gatos AFSCME Classifications
Salary Schedule for Fiscal Year 2022/23
Effective July 10, 2022
Adopted by Town Council June 7, 2022
Class
Code Classification Title Rate Type
Range
AF1 Step 1 Step 2 Step 3 Step 4 Step 5 Step 6
6619 Assistant Equipment Mechanic Hourly 09 $33.37 $35.04 $36.79 $38.63 $40.56 $42.59 6620 Equipment Mechanic Hourly 03 $38.38 $40.30 $42.32 $44.44 $46.66 $48.99 6618 Supervising Equipment Mechanic Hourly 08 $44.14 $46.35 $48.67 $51.10 $53.66 $56.34 6670 Facility Technician Hourly 02 $35.71 $37.50 $39.38 $41.35 $43.42 $45.59 6600 Lead Parks & Maintenance Worker Hourly 07 $40.75 $42.79 $44.93 $47.18 $49.54 $52.02 6650 Parks & Maintenance Worker Hourly 05 $32.79 $34.43 $36.15 $37.96 $39.86 $41.85 6660 Parks & Maintenance Worker Trainee Hourly 04 $26.78 $28.12 $29.53 $31.01 $32.56 $34.19 6605 Senior Parks & Maintenance Worker Hourly 06 $35.68 $37.46 $39.33 $41.30 $43.37 $45.54 6610 Town Arborist Hourly 03 $38.92 $40.87 $42.91 $45.06 $47.31 $49.68 Reflects General Increase of 7.5%.

AFSCME 8% Page 1 of 1 Approved 6/7/2022
ATTACHMENT 1

PREPARED BY: Salina Flores
Human Resources Director
Reviewed by: Town Manager, Assistant 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: 06/07/2022
ITEM NO: 21

ADDENDUM
DATE: June 3, 2022
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Approve a Labor Agreement Between the Town of Los Gatos and the American Federation of State, County, and Municipal Employees and Authorize the Town Manager to Execute the Memorandum of Understanding REMARKS:

Attachment 3 contains the draft Memorandum of Understanding.

Attachment Distributed with the Staff Report:

1. Salary Schedule for AFSCME effective July 10, 2022
Attachment Distributed with this Addendum:

2. Memorandum of Understanding (redline)

10096186.1 LO007-005

TOWN OF LOS GATOS
AND

AMERICAN FEDERATION OF STATE, COUNTY AND MUNICIPAL EMPLOYEES (AFSCME)

MEMORANDUM OF UNDERSTANDING
JULY 1, 2022 - JUNE 30, 2024
ATTACHMENT 2

Town of Los Gatos American Federation of State, County and Municipal Employees July 1, 2022 – June 30, 2024 10096186.1 LO007-005
This page left intentionally blank

Town of Los Gatos American Federation of State, County and Municipal Employees July 1, 2022 – June 30, 2024 10096186.1 LO007-005

MEMORANDUM OF UNDERSTANDING

BETWEEN

THE TOWN OF LOS GATOS
AND

AMERICAN FEDERATION OF STATE, COUNTY AND MUNICIPAL EMPLOYEES (AFSCME) THIS AGREEMENT IS ENTERED INTO AS OF JULY 1, 2022, BETWEEN THE TOWN OF LOS GATOS, HEREINAFTER REFERRED TO AS THE "TOWN", AND THE LOS GATOS “AMERICAN FEDERATION OF STATE, COUNTY AND MUNICIPAL EMPLOYEES”, HEREINAFTER REFERRED TO AS "AFSCME".

Pursuant to Town Resolution 1974-41 of the Town of Los Gatos and Section 3500 et. seq. of the Government Code, the duly authorized representatives of the Town and AFSCME, having met and conferred in good faith concerning the issues of wages, hours, and terms and conditions of employment, as herein set forth, declare their agreement to the provisions of this Memorandum of Understanding.

FOR AFSCME:

Carol McEwan
Business Agent

Sherrie Olsen
Parks & Maintenance Worker
AFSCME President
____________________________________
Thomas Lettiere
AFSCME Secretary Treasurer
TOWN OF LOS GATOS:

Laurel Prevetti
Town Manager
___________________________________
Arn Andrews
Assistant Town Manager
__
Salina Flores
Human Resources Director

Lisa S. Charbonneau
Liebert Cassidy Whitmore
APPROVED AS TO FORM:
___________________________________
Gabrielle Whelan
Town Attorney

Town of Los Gatos American Federation of State, County and Municipal Employees July 1, 2022 – June 30, 2024 10096186.1 LO007-005
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Town of Los Gatos American Federation of State, County and Municipal Employees July 1, 2022 – June 30, 2024 10096186.1 LO007-005
Table of Contents
(to be updated with correct sections and page numbers after Town Council consideration) TOWN OF LOS GATOS.................................................................................................. 1 AND 1

AMERICAN FEDERATION OF STATE, COUNTY AND MUNICIPAL EMPLOYEES (AFSCME)....................................................................................................................... 1 MEMORANDUM OF UNDERSTANDING ....................................................................... 1 JULY 1, 2022 - JUNE 30, 2024 ....................................................................................... 1 Section 1.Purpose........................................................................................................... 1 Section 2.Term................................................................................................................ 1 Section 3.Union Rights.................................................................................................... 1 Section 4.Savings Clause ............................................................................................... 2 Section 5.Union Dues ..................................................................................................... 2 Section 6.Management Rights ........................................................................................ 3 Section 7.Town Employer-Employee Relations Resolution ............................................ 3 Section 8.Equal Employment Opportunity....................................................................... 3 Section 9.Non-Discrimination.......................................................................................... 3 Section 10. Salary ....................................................................................................... 3 Section 11. Other Compensation ................................................................................ 4

11.1 Out-of-Classification Pay....................................................................................... 4 Section 12. Payroll Practices....................................................................................... 5 Section 13. Retirement Benefits.................................................................................. 5

13.3 2% at 62 (Public Employees’ Pension Reform Act of 2013 [PEPRA])................... 6 Section 14. Health and Welfare Benefits and Rate of Town Contribution ................... 7 Section 15. Workers’ Compensation ........................................................................... 9 Section 16. Deferred Compensation ........................................................................... 9 Section 17. Uniforms................................................................................................... 9 Section 18. Safety Equipment................................................................................... 10 Section 19. Mileage................................................................................................... 10 Section 20. Work Schedule....................................................................................... 10 Section 21. Overtime................................................................................................. 11

Town of Los Gatos American Federation of State, County and Municipal Employees July 1, 2022 – June 30, 2024 10096186.1 LO007-005
Section 22. Call Back ................................................................................................ 12 Section 23. Standby .................................................................................................. 12 Section 24. Emergency Work.................................................................................... 13 Section 25. Work Furlough Program ......................................................................... 13 Section 26. Vacation Schedule ................................................................................. 14 Section 27. Vacation Cash-Out................................................................................. 14 Section 28. Sick Leave.............................................................................................. 14 Section 29. Holidays ................................................................................................. 16 Section 30. Personal Leave ...................................................................................... 16 Section 31. Maternity Leave/Family Leave/Medical Leave ....................................... 16 Section 32. Catastrophic Time Bank............................................................................. 16 Section 33. Bereavement Leave .................................................................................. 16 Section 34. Military Leave ......................................................................................... 16 Section 35. Personal Emergency Leave ................................................................... 17 Section 36. Jury Duty ................................................................................................ 17 Section 37. Leave Without Pay ................................................................................. 17 Section 38. Accrual of Benefits ................................................................................. 17 Section 39. Notice of Vacancies................................................................................ 17 Section 40. Promotions ............................................................................................. 17 Section 41. Probationary Period................................................................................ 18 Section 42. Outside Employment.............................................................................. 18 Section 43. Attendance ............................................................................................. 18 Section 44. Personnel Files....................................................................................... 18 Section 45. Performance Evaluations ....................................................................... 18 Section 46. Seniority ................................................................................................. 19 Section 47. Layoff Policy........................................................................................... 19 Section 48. Layoff Reinstatement ............................................................................. 20 Section 49. Contracting Out ...................................................................................... 21 Section 50. Safety Committee................................................................................... 21 Section 51. Safety ..................................................................................................... 21 Section 52. Physical Examinations and Tests........................................................... 21 Section 53. Grievance Procedure ............................................................................. 22