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HomeMy WebLinkAbout01-04-2023 City Council Agenda Packet, amended 01-04-2023Saratoga City Council Agenda January 4, 2023 – Page 1 of 4 SARATOGA CITY COUNCIL SPECIAL MEETING JANUARY 4, 2023 AMENDED AGENDA • 01/04/2023 ITEM 2.1 PRESENTATION SLIDES ADDED • 01/04/2023 ITEM 2.3 SUPPLEMENTAL MEMO AND PRESENTATION SLIDES ADDED Teleconference/Public Participation Information The Closed Session and Special Meeting will be held in-person and by teleconference pursuant to amendments to the teleconference rules required by the Ralph M. Brown Act allowing teleconferencing during a proclaimed state of emergency when a local official has recommended social distancing. Members of the City Council and the public may participate in person at the location listed below or via the Zoom platform using the information below. Members of the public can view and participate in the 6:00 p.m. Closed Session by: 1. Attending the meeting in person at the City Hall Linda Callon Conference Room, located at 13777 Fruitvale Avenue, Saratoga CA 95070; OR 2. Accessing the meeting through Zoom • https://us02web.zoom.us/j/89527052458 • Webinar ID 895 2705 2458 OR • Calling 1.408.638.0968 or 1.669.900.6833 The public may comment on Closed Session items at the beginning of the Closed Session; after public comment the meeting will be closed to the public. Members of the public can view and participate in the 7:00 p.m. Special Meeting by: 1. Attending the meeting in person at the Civic Theater, Council Chambers located at 13777 Fruitvale Avenue, Saratoga CA 95070; OR 2. Accessing the meeting through Zoom • Webinar URL: https://us02web.zoom.us/j/89201627048 • Webinar ID: 892 0162 7048 • Call In: 1.408.638.0968 or 1.669.900.6833; OR 3. Viewing the meeting on Saratoga Community Access Television Channel 15 (Comcast Channel 15, AT&T UVerse Channel 99 and calling in following the direction above; OR 4. Viewing online at http://saratoga.granicus.com/MediaPlayer.php?publish_id=2 and calling in following the direction above. Written Communication Comments can be submitted in writing at www.saratoga.ca.us/comment. Written communications will be provided to the members of the City Council and included in the Agenda Packet and/or in supplemental meeting materials. Saratoga City Council Agenda January 4, 2023 – Page 2 of 4 Public Comment Members of the public may comment on any item for up to three (3) minutes. The amount of time for public comment may be reduced by the Mayor or by action of the City Council. Public Comment will begin with speakers attending in-person first followed by those attending via Zoom. Meeting Recording Information In accordance with the Saratoga City Council’s Meeting Recording Policy, City Council Study Sessions, Joint Meetings, Joint Sessions, Commission Interviews, Retreats, meetings with the Planning Commission, and Regular Session Meetings are recorded and made available following the meeting on the City website. 6:00 PM CLOSED SESSION City Hall, Linda Callon Conference Room | 13777 Fruitvale Avenue, Saratoga, CA 95070 CONFERENCE WITH LEGAL COUNSEL—EXISTING LITIGATION (Pursuant to Government Code Section 54956.9(d)(1) ) Shevertalova v. Monte Sereno et al. (Santa Clara County Case No. 19CV348222) Ruentien Lu vs The City of Saratoga et al. (Santa Clara County Case No. 21CV385340) Timothy Hurley vs The City of Saratoga et al. (Santa Clara County Case No. 21CV384278) CONFERENCE WITH LEGAL COUNSEL—ANTICIPATED LITIGATION (Significant exposure to litigation pursuant to Government Code Section 54956.9(d)(2). (1 case) Staff Report Attachment A - Letter dated December 13, 2022 CONFERENCE WITH LABOR NEGOTIATORS (Gov’t Code 54957.6) Agency Designated Representatives: City Manager James Lindsay, City Attorney Richard Taylor, Employee Organizations: Saratoga Employee Association; Northern California Carpenters Regional Council, Carpenters Forty Six Northern California Counties Conference Board and their Affiliated Local Unions 7:00 PM SPECIAL MEETING Civic Theater, Council Chambers | 13777 Fruitvale Avenue, Saratoga, CA 95070 PLEDGE OF ALLEGIANCE ROLL CALL REPORT ON POSTING OF THE AGENDA The agenda for this meeting was properly posted on December 16, 2022. REPORT FROM CLOSED SESSION 1. CONSENT CALENDAR The Consent Calendar contains routine items of business. Items in this section will be acted on in one motion, unless removed by the Mayor or a Council Member. Any member of the public may speak on an item on the Consent Calendar at this time, or request that the Mayor remove an item from the Consent Calendar for discussion. Saratoga City Council Agenda January 4, 2023 – Page 3 of 4 1.1. Reconsider and confirm findings pursuant to Assembly Bill 361 Recommended Action: Reconsider and confirm findings pursuant to Assembly Bill 361 of the continued public health officials’ recommendation to social distance and to therefore continue providing members of City of Saratoga Brown Act bodies with the option to attend meetings by teleconference. Staff Report Attachment A - City Council Resolution 21-073 Authorizing Teleconferenced Mtgs Pursuant to AB 361 2. GENERAL BUSINESS 2.1. Pavement Management Program Update Recommended Action: Receive report and provide direction to staff regarding the City’s Roadway Conditions & Pavement Management Program Staff Report Attachment A - 2021 Pavement Conditions of Bay Area Jurisdictions Presentation Slides (added 01-04-2023) 2.2. Existing Labor Agreements and Framework for Negotiations Recommended Action: Receive and file report on existing labor agreements and framework for negotiations. Staff Report Attachment A - Staffing History Attachment B - 2022-07-01 Salary Schedule Attachment C - SEA MOU Attachment D - UNION MOU Attachment E - Unrepresented Compensation Plan 2.3. 2023-24 Budget Considerations and 3-year Forecast Presentation Recommended Action: Receive presentation on major 2023-24 budget considerations and a preliminary 3-year forecast. Staff Report Attachment A - CA Supreme Court Ruling Attachment B - 2014-2024 Sheriff's Contract Attachment C - FY2023 Law Enforcement Costs Overview Supplemental Memo - Item 2.3 Additional Information (added 01-04-2023) Presentation Slides (added 01-04-2023) ADJOURNMENT Saratoga City Council Agenda January 4, 2023 – Page 4 of 4 CERTIFICATE OF POSTING OF THE AGENDA, DISTRIBUTION OF THE AGENDA PACKET, COMPLIANCE WITH AMERICANS WITH DISABILITIES ACT I, Britt Avrit, City Clerk for the City of Saratoga, declare that the foregoing agenda for the meeting of the City Council was posted and available for review on December 16, 2022 at the City of Saratoga, 13777 Fruitvale Avenue, Saratoga, California and on the City's website at www.saratoga.ca.us. Signed this 16th day of December 2022 at Saratoga, California. Britt Avrit, MMC, City Clerk In accordance with the Ralph M. Brown Act, copies of the staff reports and other materials provided to the City Council by City staff in connection with this agenda, copies of materials distributed to the City Council concurrently with the posting of the agenda, and materials distributed to the City Council by staff after the posting of the agenda are available on the City website at www.saratoga.ca.us and are available for review in the office of the City Clerk at 13777 Fruitvale Avenue, Saratoga, California. In compliance with the Americans with Disabilities Act and the Governor’s Executive Order, if you need assistance to participate in this meeting, please contact the City Clerk at bavrit@saratoga.ca.us or calling 408.868.1216 as soon as possible before the meeting. The City will use its best efforts to provide reasonable accommodations to provide as much accessibility as possible while also maintaining public safety. [28 CFR 35.102-35.104 ADA title II] SARATOGA CITY COUNCIL MEETING DATE:January 4, 2023 DEPARTMENT:City Attorney’s Office PREPARED BY:Richard Taylor, City Attorney SUBJECT:Threat of Litigation RECOMMENDED ACTION: Review the attached threat of litigation and provide direction to staff. BACKGROUND: On December 13, 2022 the City received the attached letter threatening litigation in connection with the City’s enforcement of state laws governing development in very high wildfire hazard zones. ATTACHMENT: Attachment A –Letter dated December 13, 2022 1598316.1 4 Matteoni (§CH'Leacuhgt'man'December 13, 2022 LAWYERS %uriniin }:. M,illeoni T'egg) M. {)al.iiililin }3iacllev Vl. el:illianni William Parkin, Esq. City of Saratoga Assistant City Attorney 1 3777 Fruitvale Avenue Saratoga, CA 95070 I-?ailnri (;. Het'lit+nan (;t-rri- Hl)111111(111 Re: Long Hill Family Trust SB9 Urban Lot Split Application No. ULS22-0010, ARB22-0060, TEC22-0103 and TEC22-0104 20625 Brookwood Lane Dear Bill, This letter is intended to address the off-site improvement requirements recommended by CalFire through the Santa Clara County Fire Department in its Developmental Review Comments dated July 27, 2022 attached to Chris Riordan's letter of incomplete status dated August 10, 2022. Those requirements cannot be lawfully imposed on the above-referenced application. Long Hill's Urban Lot Split application is made pursuant to Government Code Section 66411.7, subpart (b)(3) of which states: Notwithstanding Section 66411.1, a local agency shall not impose regulations that require dedications of rights-of- way or the construction of offsite improvements for the parcels being created as a condition of issuing a parcel map for an urban lot split pursuant to this section. (emphasis added) Thus, the City is specifically prohibited by the State legislation that authorizes this urban lot split from requiring off-site improvements of any kind. Accordingly, the City cannot impose any of the off-site improvement requirements recommended by CalFire through the Santa Clara County Fire Department. Additionally, Long Hill objects to the imposition of these off-site requirements as violating its Constitutional rights in the absence of an individualized assessment which the City is legally obliged to prepare demonstrating that these requirements are roughly proportional to the impacts of the use proposed by Long Hill through its application. Based on the negligible impact of the residential development of the [848 The Ala+neda I San Jose, CA 95126 I ph. 408.293.4300 7[@] fax. 408.293.4004 www.inatkeom.com 5 VVilliam Parkin, Esq. City of Saratoga December 43, 2022 Page 2 Long Hill property in this area, which is already well developed with many homes, we believe that were the City to prepare the required individualized assessment, it would conclude that the requirements are not roughly proportionate to the impacts of the proposed project. Based on each of these analyses, the off-site requirements would not survive legal challenge Very truly yours, BARTON G. HECHTMAN BGH/jc cc: Long Hill Family Trust Z:lClientslLong Hill/correspondencelParkin letter re CalFire 12.13.22.doc 6 SARATOGA CITY COUNCIL MEETING DATE:January 4,2023 DEPARTMENT:City Manager’s Department PREPARED BY:Britt Avrit, MMC, City Clerk SUBJECT:Reconsider and confirm findings pursuant to Assembly Bill 361 RECOMMENDED ACTION: Reconsider and confirm findings pursuant to Assembly Bill 361 of the continued public health officials’ recommendation to social distance and to therefore continue providing members of City of Saratoga Brown Act bodies with the option to attend meetings by teleconference. BACKGROUND: On October 20, 2021 the City Council adopted a Resolution that enabled the City Council and all legislative bodies of the City to continue to meet remotely in accordance with AB 361. This state law waives standard teleconference requirements under the Brown Act and allows cities to meet remotely based on a state of emergency proclaimed by the Governor when the city determines that either: 1) state or local public health officials have required or recommend social distancing; or 2) the emergency continues to directly impact the ability to meet safely in person. On October 5, 2022, the City Council voted to allow members of the City Council, Commissions, and public to participate in meetings in person or remotely starting with the November 2, 2022 City Council Regular Session. Pursuant to AB 361, the City Council must reaffirm AB 361 findings every 30 days to provide City Council and Commission Members with the option to attend meetings virtually.City of Saratoga Brown Act bodies may continue to meet virtually under the streamlined rules of AB 361 if the emergency declaration expires so long as social distancing continues to be required or recommended by a state or local public health official, and if the City Council has taken action to reconfirm findings pursuant to AB 361. If the City Council does not continue to reconfirm the findings pursuant to AB 361, and if the Governor’s emergency declaration expires, the members of the City’s Brown Act bodies will not have the option to participate in meetings virtually under the streamlined rules of AB 361 unless a new emergency declaration is proclaimed by the Governor. ATTACHMENTS: Attachment A –Resolution 21-073 authorizing teleconferenced public meetings 7 8 9 SARATOGA CITY COUNCIL MEETING DATE:January 4, 2023 DEPARTMENT:Public Works PREPARED BY:Macedonio Nunez, City Engineer ______ SUBJECT: Pavement Management Program Update ______ RECOMMENDED ACTION: Receive report and provide direction to staff regarding the City’s Roadway Conditions & Pavement Management Program BACKGROUND: Pavement Management Program (PMP) Pavement structures represent one of the largest capital investments for any jurisdiction. Maintaining and operating pavements on a citywide system involves complex decisions about how and when to resurface or apply treatments to keep the pavement performance and operating costs at reasonable levels. MTC Pavement Management System Pavement conditions in the City are tracked by Public Works using both visual inspection and a computer program titled the Metropolitan Transportation Commission (MTC) Pavement Management System (PMS). This program is administered, and continually being improved by MTC. The PMS for the City of Saratoga provides a pavement network inventory, network conditions, maintenance recommendations, and forecasting. This program combined with resident requests, engineering judgment, and available budget determines the year-to-year priorities of streets to be addressed by the City’s annual Pavement Management Program. The City’s street network is inspected every two to three years. MTC’s 2021 Pavement Conditions of Bay Area Jurisdictions report is provided as Attachment A. The grading system used to determine a pavement’s condition is a numerical scale from zero to one hundred (0-100), with 0 being completely failed and 100 indicating a new street. This scale is known as the Pavement Condition Index (PCI). PCI’s for the City’s pavement network are based on a distress rating calculated by an algorithm the MTC modified from the Army Corps of Engineers. For the purposes of mapping and general summarization of condition, the classifications are simplified to four categories: 10 PCI 100-70 Pavements which have little or no distress. A pavement in this category may be described as “Excellent” or “Very Good”. 70-50 Pavements which have a significant level of distress. A pavement in this category may be described as “Good” or “Fair”. 50-25 Pavements which have major distress. A pavement in this category may be described as “Fair” or “Poor”. 25-0 Pavements which have extensive amounts of distress. A pavement in this category may be described as “Very Poor” or “Failed”. The MTC’s recommended deterioration curve takes into account the nonlinear behavior of asphalt roadway surface deterioration. A typical pavement section will deteriorate approximately 40% in the first 75% of its lifespan. The same pavement section, if untreated, will experience another 40% reduction in overall quality in only the next 12% of its lifespan. This amounts to an equal level of deterioration in only 1/6 the time. A typical street section has a useable life of approximately 20 years, if left untreated. Saratoga’s Pavement Network The pavement network within the City of Saratoga is approximately 141 centerline miles with a replacement value of approximately $167 million. The network is composed of approximately 92 miles of residential streets, 29 miles of collector streets, and 20 miles of arterial streets. Residential streets comprise 64% of the network. The overall PCI value of the City’s pavement network is classified as “Good” with a network average of 66. The average PCI by street classification is as follows: CLASSIFICATION 2022 PCI Arterial 70 Collector 64 Residential 66 NETWORK AVERAGE 66 The City Council’s current goal is to maintain a network average of 70 PCI. The PCI from 2016 to 2019 dropped 4 points due to insufficient funding. The current PCI of 66 is 1 point lower than what was reported in the 2019 network survey. The additional $1 million allocated to the 22/23 paving project has slowed the descent in the PCI predicted in 2020. This has already saved more than $1 million in future repairs. Pavement network funding and PCI level are directly connected but can be used in different ways to inform goals and policies. The Council can set an annual budget amount that will support a particular 11 level of PCI and/or re-set the current PCI goal to a level that can be achieved over a certain time period. The PCI goal(s) can continue to be set for the entire street network or set for individual street classifications. The City’s pavement network has a reported $40 million of deferred maintenance (unfunded backlog). The following funding five-year scenarios would be required to: Increase the PCI by 5 points (66 to 71) it would take $7.1 million/year Maintain Current PCI it would take $4.27 million/year Current Revenue Sources Maintenance of the City’s roads is funded through the Annual Roadway Improvements project in the CIP. The current annual revenue to that project is from five sources of funding totaling $3.62 million: Gas Tax Fund: $0.89 million Measure B Sales Tax: $0.68 million Road Refuse Impact Fee: $0.35 million SB1:$0.70 million General Fund Roads (one-time funds)$1.00 million Total: $3.62 million The Annual Pavement Management Program project is the primary capital project funded in support of Council’s goal to maintain Saratoga city streets at an average 70 PCI rating. Staff will be presenting a power point presentation on this item at the City Council Meeting. ATTACHMENT: Attachment A - 2021 Pavement Conditions of Bay Area Jurisdictions 12 Pavement Condition Of Bay Area Jurisdictions 2021 13 Pavement Condition Index (PCI) for Bay Area Jurisdictions, 2021 3-Year Moving Average Jurisdiction County Total Lane Miles 2019 2020 2021 Very Good (PCI=80–89) Cupertino Santa Clara 297.7 84 85 84 Orinda Contra Costa 187.4 75 81 83 Palo Alto Santa Clara 414.4 84 84 83 Dublin Alameda 327.0 85 84 82 Brentwood Contra Costa 425.9 82 81 81 Solano County Solano 930.1 81 80 80 Good (PCI=70–79) Danville Contra Costa 324.0 80 80 79 Foster City San Mateo 120.1 81 80 79 Los Altos Hills Santa Clara 124.7 80 79 79 Clayton Contra Costa 94.2 82 81 79 Woodside San Mateo 96.9 81 81 79 Livermore Alameda 725.4 79 79 79 Menlo Park San Mateo 196.6 77 79 79 Burlingame San Mateo 162.4 78 79 78 Daly City San Mateo 256.8 82 79 78 Hillsborough San Mateo 166.4 80 78 78 San Ramon Contra Costa 503.8 78 78 78 Pleasanton Alameda 516.0 79 78 78 Ross Marin 22.0 78 77 77 Portola Valley San Mateo 70.9 78 77 77 Colma San Mateo 26.9 79 78 77 Sunnyvale Santa Clara 639.2 76 76 77 Union City Alameda 329.2 78 77 76 Yountville Napa 16.6 74 74 76 Windsor Sonoma 171.1 77 76 76 Tiburon Marin 67.5 76 77 75 Emeryville Alameda 47.2 74 74 75 Atherton San Mateo 105.3 76 75 75 Lafayette Contra Costa 199.3 76 75 75 Dublin Alameda 327.0 85 85 85 Palo Alto Santa Clara 414.4 83 84 84 Cupertino Santa Clara 297.7 76 83 84 Clayton Contra Costa 94.2 84 83 82 Brentwood Contra Costa 425.9 83 82 82 Daly City San Mateo 256.8 81 83 81 Solano County Solano 927.9 81 81 81 Foster City San Mateo 120.1 82 81 80 Los Altos Hills Santa Clara 124.7 79 79 80 Woodside San Mateo 97.2 74 81 80 Danville Contra Costa 323.4 77 78 80 El Cerrito Contra Costa 137.6 84 83 80 Hillsborough San Mateo 166.4 76 79 79 Livermore Alameda 719.3 78 78 79 Colma San Mateo 26.9 83 80 79 Pleasanton Alameda 516.0 79 78 79 Union City Alameda 329.2 81 79 78 San Ramon Contra Costa 503.8 80 79 78 Portola Valley San Mateo 69.6 79 79 78 Ross Marin 22.0 74 75 78 Oakley Contra Costa 289.8 77 76 77 Brisbane San Mateo 66.7 77 78 77 Windsor Sonoma 171.1 78 77 77 Burlingame San Mateo 162.6 75 78 77 Menlo Park San Mateo 195.7 73 77 77 Sunnyvale Santa Clara 639.2 76 76 76 Lafayette Contra Costa 199.6 79 77 76 Tiburon Marin 67.5 76 76 76 Atherton San Mateo 105.4 77 76 76 14 Pavement Condition Index (PCI) for Bay Area Jurisdictions, 2021 (continued) Oakley Contra Costa 293.2 77 76 75 Brisbane San Mateo 66.7 77 76 75 San Francisco San Francisco 2144.6 74 74 74 Santa Clara Santa Clara 608.3 75 75 74 Moraga Contra Costa 113.3 72 74 74 Newark Alameda 256.0 75 74 73 Walnut Creek Contra Costa 435.0 73 73 73 San Mateo County San Mateo 628.7 73 74 73 Morgan Hill Santa Clara 301.7 72 73 73 South San Francisco San Mateo 294.9 75 73 73 Fremont Alameda 1081.4 73 73 72 Redwood City San Mateo 358.6 75 73 72 Alameda County Alameda 993.7 71 72 72 El Cerrito Contra Costa 137.6 80 76 72 Mill Valley Marin 116.0 68 73 72 San Mateo San Mateo 426.9 75 73 71 Milpitas Santa Clara 302.5 75 73 71 Vacaville Solano 697.2 69 70 71 Belvedere Marin 23.4 73 71 71 Contra Costa County Contra Costa 1337.7 72 71 70 San Pablo Contra Costa 104.2 72 71 70 Monte Sereno Santa Clara 31.3 65 68 70 Sonoma Sonoma 68.3 73 71 70 Fair (PCI=60–69) Campbell Santa Clara 218.7 69 70 69 Hayward Alameda 655.3 70 70 69 Los Gatos Santa Clara 230.0 68 69 69 Alameda Alameda 278.1 70 70 68 Fairfield Solano 772.3 72 69 68 Napa Napa 467.6 71 69 68 Pleasant Hill Contra Costa 225.3 67 67 68 Mountain View Santa Clara 332.8 73 73 68 3-Year Moving Average Jurisdiction County Total Lane Miles 2019 2020 2021 15 San Jose Santa Clara 4468.0 66 66 67 Rohnert Park Sonoma 227.9 67 68 67 Hercules Contra Costa 122.3 67 67 67 Martinez Contra Costa 233.0 63 64 67 San Anselmo Marin 81.5 66 68 67 Larkspur Marin 65.6 52 59 67 Novato Marin 318.7 69 68 67 Los Altos Santa Clara 227.0 69 68 66 Corte Madera Marin 72.2 67 66 66 Marin County Marin 851.0 66 65 66 Saratoga Santa Clara 284.4 68 67 66 Antioch Contra Costa 685.3 68 66 65 Half Moon Bay San Mateo 55.4 60 66 65 San Rafael Marin 331.5 65 65 65 Dixon Solano 143.6 65 64 65 Healdsburg Sonoma 94.1 61 63 65 Piedmont Alameda 78.4 64 64 64 Santa Clara County Santa Clara 1428.9 66 66 64 Richmond Contra Costa 576.9 64 63 62 Belmont San Mateo 139.2 57 60 62 San Bruno San Mateo 180.1 61 62 62 Santa Rosa Sonoma 1131.8 60 62 62 Cotati Sonoma 49.2 56 59 61 Calistoga Napa 30.6 59 61 61 Pittsburg Contra Costa 343.9 62 61 61 American Canyon Napa 112.8 63 62 61 East Palo Alto San Mateo 82.7 65 62 60 Rio Vista Solano 46.0 63 59 60 Sausalito Marin 56.4 63 62 60 San Carlos San Mateo 179.2 62 61 60 Gilroy Santa Clara 269.6 65 62 60 Pavement Condition Index (PCI) for Bay Area Jurisdictions, 2021 (continued) 3-Year Moving Average Jurisdiction County Total Lane Miles 2019 2020 2021 16 Pavement Condition Index (PCI) for Bay Area Jurisdictions, 2021 (continued) 3-Year Moving Average Jurisdiction County Total Lane Miles 2019 2020 2021 At Risk (PCI=50–59) Concord Contra Costa 716.9 60 59 58 Suisun City Solano 153.6 61 59 58 Albany Alameda 59.4 57 56 57 Pinole Contra Costa 119.3 62 59 57 Berkeley Alameda 450.5 57 58 57 Fairfax Marin 54.7 60 58 56 Cloverdale Sonoma 64.7 58 56 55 San Leandro Alameda 393.8 57 55 55 Millbrae San Mateo 120.6 53 56 55 Oakland Alameda 2022.5 53 52 53 Benicia Solano 198.0 53 51 53 St Helena Napa 51.5 57 54 52 Sonoma County Sonoma 2691.1 49 50 51 Poor (PCI=25–49) Vallejo Solano 710.9 52 49 48 Napa County Napa 828.7 48 45 46 Sebastopol Sonoma 47.5 51 48 46 Petaluma Sonoma 391.8 45 44 44 Pacifica San Mateo 188.1 47 42 42 Bay Area —43,953 67 67 67 17 Aggregate City and County PCI for Bay Area Counties, 2021 3-Year Moving Average Jurisdiction Total Lane Miles 2019 2020 2021 Good (PCI=70–79) San Francisco 2,145 74 74 74 San Mateo 3,925 72 71 70 Santa Clara 10,193 70 70 70 Fair (PCI=60–69) Contra Costa 7,190 70 70 69 Alameda 8,285 68 68 67 Marin 2,059 66 66 66 Solano 3,707 67 68 66 At Risk (PCI=50–59) Napa 1,513 57 56 55 Sonoma 4,937 54 55 55 18 Figure 1: Year-Over-Year Comparison of Local Roadway Conditions Pavement Conditions for Local Roadways, 2007–2021 (Lane Miles) Excellent or Very Good Good or Fair At Risk Poor or Failed No Data Year Weighted PCI 2012 2013 2014 20162015 66 66 66 67 67 2017 67 2019 67 2018 67 Regional Weighted PCI (Year-over-Year) 0%10%20%30%40%50%60%70%80%90%100% 2007 2008/09 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2021 67 67 2020 35% 32% 31% 31% 32% 31% 34% 34% 32% 34% 35% 35% 34% 35% 34% 34% 22% 33%34%21% 23% 23% 23% 23% 23% 22% 23% 37%32%22% 37%31%23% 36%33%21% 10% 11% 11% 11% 10% 10% 10% 10% 11% 9% 9% 10% 35%34%22%9% 37%33%21%9% 19 Roadway Conditions & Pavement Management Program (PMP) City of Saratoga Public Works Department 20 •City’s pavement system: •141 miles long or approximately 1 square mile •Replacement value of $167 million •Pavement conditions are tracked by: •Visual Inspection •Computer program titled MTC Pavement Management System (PMS) •PMS provides the following: •Pavement network inventory, current network conditions, and maintenance recommendations •PMS combined with engineering judgment and available budget determine the annual priorities of streets to be paved Pavement Management Program 21 Current Funding Sources Gas Tax Fund: $0.89M Measure B Sales Tax: $0.68M Road Refuse Impact Fee: $0.35M SB1:$0.70M General Fund Roads (one-time funds): $1.00M Total: $3.62M Annual Roadway Improvements 22 •Grading system used to determine pavement’s condition is a numerical scale from zero to 100 (0-100) •Zero (0) = completely failed •One hundred (100) = new street •Scale is known as the Pavement Condition Index (PCI) Pavement Grading System 23 •Pavements which have little or no distress •Pavements in this category may be described as “excellent” or “very good” Pavement Grading System 100-70 24 •Pavements which have a significant level of distress •Pavements in this category may be described as “good” or “fair” Pavement Grading System 70-50 25 •Pavements which have a major distress •Pavements in this category may be described as “fair” or “poor” Pavement Grading System 50-25 26 •Pavements which have extensive amounts of distress •Pavements in this category may be described as “very poor” or “failed” Pavement Grading System 25-0 27 Pavement Condition IndexDeterioration Curve 28 PCI Average by Street Classification 83 67 67 7174 65 65 6770 64 66 66 0 10 20 30 40 50 60 70 80 90 Arterial (21% of Network) Collector (15.5% of Network) Residential (63.5% of Network) Total/Average 2016 2019 2022 29 Pavement Condition –Centerline Miles 11.8 8.3 8.4 15.6 20.3 21.7 29.8 40.1 42.3 84.0 73.2 69.4 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2016 2019 2022 Very Good (70<PCI) Good(50<PCI<=70) Poor(25<PCI<=50) Very Poor (PCI<=25) 30 PMS Funding Scenarios -PCI 72 6667 63 55 60 65 70 75 80 2010 2013 2016 2019 2020 2021 2022 2023 2024Pavement Condition Index (PCI)FY Increase Current PCI by 5 Points ($7.1M/year) Maintain Current PCI ($4.27M/year) Current Funding Levels ($2.6M/year) 31 Conclusions •Current goal is to maintain Saratoga city streets at an average 70 PCI rating. •Current funding levels are insufficient to meet goal •The additional $1 million allocated to the 22/23 paving project has slowed the descent predicted in 2020 and has already saved more than $1 million in future repairs 32 33 34 SARATOGA CITY COUNCIL MEETING DATE:January 4, 2023 DEPARTMENT:Administrative Services PREPARED BY:Nick Pegueros Monica LaBossiere Babette McKay SUBJECT:Existing Labor Agreements and Framework for Negotiations RECOMMENDED ACTION: Receive and file report on existing labor agreements and framework for negotiations. BACKGROUND: The purpose of this report is to provide City Council, employee groups, and members of the public information relevant to the upcoming labor negotiations with organized employee groups. DISCUSSION: All city employee classifications, except City Manager, are compensated based on one of three Council-adopted documents. Two recognized employee groups negotiate collectively on behalf of classifications designated as part of their group: the Saratoga Employee Association (SEA) and the Northern CA Carpenters Regional Council (UNION), with the terms of those negotiations memorialized in Memoranda of Understanding (MOU or labor agreements.) Classifications not designated either SEA or UNION are unrepresented, and City Council retains sole discretion to set the compensation plan and employment terms for unrepresented classifications. Regardless of classification as a represented or unrepresented, individual employees may not directly negotiate terms different from those afforded in their MOU or the unrepresented resolution. The following table provides general information for each group. Designation Description Number of employees Salary & Benefit Document SEA Supervisory, professional, and clerical staff 31 MOU; expires 6/30/23 UNION Maintenance staff 13 MOU; expires 6/30/23 Unrepresented Assistant City Manager, Department heads, division managers, and confidential HR classification 13 No MOU. City Council adopts compensation plan and terms at its discretion. 35 The attachments provide additional reference materials for consideration in the negotiation process. Attachment A summarizes the City’s budgeted Full-time Equivalent (FTE) personnel over ten years, including temporary personnel converted to FTEs. 1.0 FTE is 80 hours per bi- weekly pay period (26), or 2,080 hours per year. Attachment B transmits the current salary schedule, by classification, effective July 1, 2022. Attachments C, D, and E transmits the current MOUs and unrepresented compensation plan. Compensation Elements Table 1 summarizes the compensation elements with direct financial impact on the City and includes baselinecost data plus theimpact of a 1 percent change. Following Table 1 is a description of each element. Table 1. Compensation Elements (All employees) Element Subject to Pension/Medicare 2023-24 Baseline*1% Adjustment Base pay (includes annualized step increases and 2022 salary survey adjustments to applicable classifications) Both $7,657,172 $76,572 Special pays (Call-out, standby, and split-shift differential)Both 31,985 162 Leave cash-out (Average of 5-year actuals)Only Medicare 163,472 1,635 Overtime pay (Paid overtime and compensatory time off; average of 5- yr actuals) Only Medicare for paid overtime 57,341 573 In-lieu allowances (Automobile, cell phone, uniform)Only Medicare 47,641 n/a Subtotal: Direct pay $7,957,611 $78,942 CalPERS normal cost Neither 869,451 8,694 Health and welfare (Medical, dental, long-term disability, life and accidental death/dismemberment insurances) Neither 1,397,330 n/a Medicare Tax (City does not participate in Social Security)Neither 115,385 1,144 457(b) deferred compensation plan match Neither 107,400 n/a Subtotal: Benefits $2,489,566 $9,838 Total $10,447.117 $88,780 *Baseline includes known increases in wages and benefits such as salary step increases, CalPERS normal cost, and health and welfare premiums. Base pay – Base pay includes anticipated baseline employee salaries with no assumption for COLA in the fiscal year 2023-24, incorporating step increases afforded under current agreements and documents. Saratoga maintains a 7-step salary schedule (Attachment B). Employees hired at or below the 4th step are provided one step increase at their anniversary until they reach the 5th 36 step. Employees move to the 6th step after four years at the 5th step. Employees move to the 7th step after four years at the 6th step. Each step represents a 5 percent increase and, if awarded, is in addition to any Cost-of-Living Adjustment (COLA) negotiated in their applicable labor agreement. Special pays – SEA and UNION have negotiated pay elements triggered by certain assignments or job requirements. Special pay is calculated in the employee’s pension benefit and is subject to CalPERS' normal cost. Call-out pay is paid to employees who are called out to perform work of an emergency nature after the employee’s regular scheduled workday and are compensated for a minimum of three (3) hours for each occurrence at one and one-half (1.5) times the employee’s regular rate of pay or two (2) times the employee’s regular rate of pay if the call-out is on designated City holidays. Standby payis paid to employees who are assigned in advance to standby duty, paid $50.00 per day for each weeknight and $100.00 per day for each weekend. Split-shift differential is unique to SEA and is an additional $25.00 for each day a work schedule is interrupted by non-paid and non-working periods of more than one hour scheduled by the City other than rest or meal periods. This provision of the MOU is not actively in-use. Leave cash-outs – Saratoga provides employees PTO for partial or full days off for vacation, illness, kin care, or other personal reasons. PTO accrues each pay period at a rate relative to the employee’s tenure with Saratoga. Employees may accumulate unused paid time off (PTO) up to a cap of 600 hours. The employee ceases earning PTO once they reach the cap and until they bring their accrued PTO below the cap. Any accrued PTO as of the employee's last day on the City's payroll is cashed-out at their then rate of pay. Leave cash-outs are not subject to CalPERS' normal cost and have no impact on pension benefits received by a retiree. Accrual rates for PTO: Years 0 through 5 = 22 days After 5 years = 27 days After 10 years = 32 days Overtime pay – Employees covered by the Fair Labor Standards Act (FLSA) must receive overtime for hours worked in excess of 40 in a workweek at a rate not less than time and one-half their regular rates of pay. Employees may elect to earn compensatory time off in lieu of paid overtime (Comp Time) at the same rate as paid overtime. Paid overtime is not subject to CalPERS’ normal cost and has no effect on the employee’s pension benefit. Comp Time, when used, substitutes for regular salary and therefore does not incur additional CalPERS costs or affect the employee’s pension benefit. SEA pays overtime according to FLSA. The current UNION labor agreement pays overtime for hours worked over 9 or 10 (depending on work schedule) in a workday OR hours worked more than 40 in one workweek. Unrepresented employees are all exempt from overtime and are paid on a salary basis. Allowances in-lieu of equipment - Saratoga offers three allowances in-lieu of equipment required to perform their duties. The allowances apply only to employees identified as needing special equipment and serve to reduce the administrative overhead and maintenance costs incurred by providing the equipment to the employee. 37 Allowance in-lieu of uniforms. UNION employees receive $500 annually for purchasing pants and/or shorts, safety boots, and cleaning of uniform shirts and other items provided by the City. The City provides three shirts per year to each UNION employee. Some SEA members in facilities maintenance, code enforcement, and building inspection receive an allowance of $200 annually for purchasing of safety boots, protective clothing, and cleaning of uniform shirts. The City provides three shirts per year to each SEA employee in eligible classifications. Allowance in-lieu ofCity fleet vehicle.The assistant city manager and department directors receive $3,300 per year for using and maintaining their personal vehicle to conduct City business. Allowance in-lieu of mobile phones. Employees requiring access to a mobile phone while performing their duties outside of the office receive a mobile phone allowance of either $40 or $65 per year, depending on whether the employee requires a data plan to conduct officialbusiness. Recipientsmust use their personal device and service plan when receiving the allowance. CalPERS Normal Cost – CalPERS sets the City’s normal cost through an actuarial analysis of the amount of money required in the year the pension is earned to fulfill the pension benefit promised to employees in retirement. The actuarial analysis includes many assumptions, including investment returns, payroll growth, inflation, mortality, and other demographic data. For 2023-24, the City’s normal cost rate on compensation elements indicated in Table 1 is 13.3 percent. Overtime earnings, in-lieu allowances, and leave cash-out are not considered wages used to calculate pension benefits. CalPERS Unfunded Accrued Liability (UAL) Minimum Payment – The minimum payment required by CalPERS for the City’s UAL is $626,201 and is not impacted by any changes in compensation. UAL is projected to increase as CalPERS completes its next actuarial analysis, which will include investment losses for the year ended June 30, 2022, and the impact of inflation on retiree benefits. Health and Welfare –The City’s health and welfare benefits to employees comprise of a cafeteria plan which provides employees the choice of medical plans offered by CalPERS Medical under the Public Employees’ Medical and Hospital Care Act (PEMCHA), dental, long-term disability, life and accidental death/dismemberment insurances. The 2023 cafeteria plan contributions range from $11,004 per year for employee-only coverage to $28,632 per year for employee plus two or more dependents. Employees also receive City-paid dental insurance for themselves and their eligible dependents, as well as life insurance, accidental death and dismemberment insurance, and long-term disability insurance. Medicare – Medicare is a fixed 1.45 percent of direct pay to employees for the first $200,000 and then a 0.09 percent Medicare surcharge for income above the threshold. Both the City and employees contribute to Medicare. The City does not participate in Social Security; therefore, the 6.2 percent FICA tax does not apply to employee wages. 457(b) deferred compensation plan match – An IRS 457 (b) plan is a tax-advantaged deferred compensation retirement plan primarily for governmental agencies. Deferred compensation plan participation is optional. The City contributes $600 per year to the employee’s deferred compensation plan account for UNION and SEA which does not require an employee match. If the employee 38 contributes additional funds to their account, the City matches those contributions 1:1, up to $1,200 per year. Unrepresented classifications, except for the assistant city manager and department directors, receive a City contribution of $600 per year to the employee’s deferred compensation plan account which does not require an employee match. If the employee contributes additional funds to their account, the City matches those contributions 1:1, up to $1,200 per year. The assistant city manager and department directors receive a City 1:1 match of up to $3,000 per year. Cost of Living Adjustment (COLA) and Biennial Salary Survey The City’s complete benefits package outlined in the previous section provides competitive compensation as evidenced by low turnover and successful recruitments. Current labor agreements and the unrepresented compensation plan use the annual change in Consumer Price Index Report (CPI-U or inflation) measured in Decemberto provide COLAs on July 1st of 2020,2021, and 2022. The December 2021 CPI-U was 3.21 percent resulting in the maximum COLA allowed under current MOUs and the unrepresented compensation plan of 3 percent on July 1, 2022. In addition to COLA, the current MOUs provided for automatic salary range increases to those employee classifications with salary ranges below market average in the City’s biennial salary survey (July 2020 and July 2022) of comparable agencies: Campbell, Cupertino, Los Altos, Los Gatos, Menlo Park, Morgan Hill, and San Carlos. A major benefit of the biennial salary survey is to smooth the impact of comparable agency COLAs that may differ from those negotiated in Saratoga. For example, if Agencies A, B, and C each provide a COLA of 3.21 percent in a year where Saratoga’s contracts provide a 3.0 percent increase, the biennial salary survey is a “catch up” feature to avoid compounding the difference over the term of the contract. The February and April CPI-U for the San Francisco region reported year-over-year inflation of 5.2 and 5.0 percent, respectively. The inflation rate worsened in subsequent months, with the annual inflation rate increasing to 6.8 percent in June, the highest rate recorded for the San Francisco region in four decades. In August and October, inflation tempered somewhat to 5.7 and 6.0 percent, respectively. Legal Framework Public sector labor agreement negotiations are governed by the Meyers-Milias-Brown Act (MMBA), Government Code section 3500. MMBA requires that local agencies meet and confer in good faith with representatives of recognized collective bargaining units regarding wages, hours, and other terms and conditions of employment. MMBA further requires that the City fully consider presentations made by collective bargaining unit representatives before determining policy or course of action. Wage, hours and other terms and conditions of employment that are captured in current MOUs or the unrepresented compensation plan include: holidays, paid time off, administrative leave, working conditions, compensation procedures, meal reimbursement, arbitration and grievance procedure, alcohol and drug abuse, discipline, and at-will employment. Unrepresented employees Unrepresented employees are those employees who are not members of a recognized employee organization. City Council retains full discretion over the wages, hours, and terms and conditions 39 of employment with unrepresented employees and does not “negotiate” any changes. Changes to the existing wages, hours, and terms and conditions of employment for the unrepresented employees are approved by a vote of City Council like labor agreements with organized employee groups. City Council may consider designating the individuals on City staff who may participate in the development of any proposed changes to the unrepresented employees’ wages, hours, and terms and conditions of employment. Confidentiality Conversations regarding the City’s bargaining position are confidential to fulfill the obligation to meet-and-confer in good faith, ensure process integrity, protect the City’s negotiating position, and maintain quality labor relations. For these reasons, city staff recommends the following procedures when negotiation talks are underway: The chief negotiator is generally the sole individual designated by City Council to communicate the status of negotiations with employee groups. They exercise their professional discretion to represent the City’s position on all matters that fall under MMBA labor negotiations. Department heads and members of the City Manager’s designated negotiations team are prohibited from discussing labor negotiations with individual City Councilmembers, City staff, members of the public, and the media, except the negotiations team will occasionally share information regarding proposals with department heads to assess their operational impacts, but the department head is not to discuss this information with others. Any City staff member who violates the confidential nature of the City’s negotiating position will be disciplined accordingly. Roles During Negotiations City Council The City Council takes action to conduct labor negotiations in both open and closed sessions. In their January 4 closed session, the City Council may decide to: Designate the chief negotiator. . Receive confidential analysis and recommendations from City staff. Define the chief negotiator's economic and non-economic negotiation parameters and authorize them to execute tentative agreements within the authority. City Council will meet as needed to evaluate proposals from collective bargaining units and amend the chief negotiator's direction or authority, if determined appropriate. In open session, the City Council may take action to: Approve professional service contracts for negotiation support, such as fees for a professional chief negotiator. Ratify successor labor agreements. 40 Chief negotiator It is recommended that the City Council designate a chief negotiator in their first closed session and retain the privilege to change chief negotiator at its pleasure. The City also retains legal counsel to advise City Council on all issues under MMBA. The chief negotiator prepares all proposals, counterproposals, and tentative agreements. They are also authorized to execute tentative agreements consistent with negotiating authority granted by City Council. The chief negotiator consults the city manager, designated city staff, or designee, on workplace impacts of proposals, counterproposals, and tentative agreements. City manager The city manager is responsible for administrating all city services and the City Council-approved budget. In negotiations, the city manager advises City Council on management matters subject to MMBA. The city manager also advises on recruitment and retention tools, employee engagement, and emerging trends in regional workforce management. The city manager designates city staff to support the chief negotiator as needed. Designated city staff Labor negotiations is a time-intensive process requiring significant preparation, coordination, analysis, and follow-up work. To ensure confidentiality during the negotiations process, the city manager will assign a limited number of city staff necessary to support the chief negotiator. The city manager or designated city staff may solicit recommendations from department heads on potential negotiations topics. The city manager or designated city staff may also ask Department heads for their input on the operational impacts of proposals. Employee group representatives Each employee group, except for unrepresented employees, identifies their own representatives in negotiations. Groups may use an outside negotiator and, if so, bear all costs for those services. Negotiations calendar and process City Council will hold its first two meetings on labor negotiations in closed session on January 4 th and 18th. City Council will provide confidential direction. The first bargaining meeting typically includes the following: Introductions Ground rules for negotiations Future meetings and proposed target dates to assist in reaching a successor agreement by May 24, 2023, which allows for City Council ratification by the end of the fiscal year Discussion of material contained in this report Discussion of any additional information Preliminary discussion of interest areas on both sides After the initial closed sessions, the City’s Chief Negotiator or designated city staff will work to scheduleclosed sessions with the City Council to provide negotiations authority to the City’s Chief Negotiator. 41 The following calendar proposes target dates to assist in successor agreements being reached before the expiration of current agreements on June 30, 2023. January 4 Closed Session – City Council meets in closed session to review its position and instruct the Chief Negotiator. January 4 Open Session – Receive report on existing labor agreements and framework for negotiations. January 18 – City Council meets in closed session to review its position and instruct the Chief Negotiator. February 1 – May 31 – City negotiates successor agreement individually with UNION and SEA to try to reach tentative successor agreement. As needed, City Council meets in closed session to review its position and instruct the Chief Negotiator. June 1 – Proposed target date for members in each of UNION and SEA to ratify tentative successor agreement. June 7 and/or 21– Consideration of resolutions ratifying successor agreement with UNION and/or SEA. ATTACHMENT: Attachment A – Regular and Temporary Full Time Equivalent (FTE) Personnel History Attachment B – Salary Schedule effective July 1, 2022 Attachment C – Resolution 19-027 Approving the Memorandum of Understanding with the Saratoga Employee Association (SEA) Attachment D – Resolution 19-036 Approving the Memorandum of Understanding with the Northern California Carpenters Regional Council (UNION) Attachment E – Resolution No. 19-039 Approving the Compensation Plan and Terms of Employment for Unrepresented Employees 42 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 Community Services 6.68 7.99 8.04 7.77 7.53 7.61 5.17 3.96 3.62 3.62 3.62 City Manager 4.00 4.22 4.28 4.43 4.53 5.41 5.20 5.24 5.23 5.23 5.23 Administrative Services 9.46 10.21 10.11 10.03 9.95 9.95 9.95 10.40 10.40 10.75 10.75 Community Development 15.50 16.04 16.20 15.55 16.67 15.91 15.34 15.75 15.50 15.50 15.50 Public Works 21.74 22.09 21.99 22.48 22.64 23.21 23.50 23.99 23.99 23.99 23.99 - 5.00 10.00 15.00 20.00 25.00 30.00 35.00 40.00 45.00 50.00 55.00 60.00 65.00 Full-time Equivalent (FTE) PersonnelFiscal Year Staffing History Regular & Temporary FTEs By Department 43 44 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SARATOGA AND SEA (2019-2023) 1 MEMORANDUM OF UNDERSTANDING BETWEEN CITY OF SARATOGA AND SARATOGA EMPLOYEE ASSOCIATION (SEA) JULY 1, 2019 TO JUNE 30, 2023 I. INTRODUCTION This Memorandum of Understanding (MOU), or “AGREEMENT”, dated July 1, 2019, is between the City of Saratoga through its designated representatives, hereinafter referred to as "CITY" and the Saratoga Employees Association (SEA), hereinafter referred to as "SEA." This MOU complies with the provisions of the Meyers-Milias-Brown Act, as contained in Section 3500, et seq., of the Government Code of the State of California in that the employer-employee representatives noted herein did meet in good faith and did reach an understanding on those matters within the scope of representation. II. GENERAL CONDITIONS A. Total Agreement This Agreement sets forth the full and entire understanding of the parties for the period beginning July 1, 2019, and continuing through June 30, 2023. This Agreement shall remain in effect until a new Agreement is signed by both parties. This Agreement supersedes any prior understandings, representations, agreements or promises of any kind, whether written, oral, express, or implied between the parties (including all prior Memoranda of Understanding) with respect to the subject matter of the Agreement. No verbal statement or other amendments, except an amendment mutually agreed upon between the parties and in writing attached to this Agreement designated as an amendment to this Agreement, shall supersede or vary the provisions in this Agreement. If any provision of this Agreement is adjudged to be void or unenforceable, the remainder of the Agreement shall nevertheless remain in effect. Except as specifically provided in this Agreement, it is agreed and understood that the SEA waives its right and agrees that the CITY shall not be required to negotiate with respect to any subject or matter covered in this Agreement or with respect to any other matters within the scope of negotiations during the term of this Agreement. The waiver of any breach, term, or condition of this Agreement by either party shall not constitute a precedent in the future enforcement of all its terms and provisions. B. City Council Approval City Council approved the terms of this MOU incorporated in Resolution No. 19-027 adopted on May 15, 2019. C. Validity of Memorandum Should any article, section, or portion of this Agreement be held unlawful and unenforceable by any court of competent jurisdiction, the court's decision shall only apply to the specific article, section, or portion of this Agreement directly specified in the decision, and the 45 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SARATOGA AND SEA (2019-2023) 2 remainder of this Agreement shall not be affected by the decision. D. CITY Rights The CITY reserves, retains, and is vested with any management rights not expressly granted to the SEA by this Agreement. These CITY rights include but are not limited to the right to: 1. Determine and modify the organization of City government and its constituent work units; 2. Determine the nature, standard, levels, and mode of delivery of City services; 3. Determine the methods, means, number, and kind of personnel by which City services are provided; 4. Determine the procedures and standards for selection for employment and promotions; 5. Establish employee performance standards including, but not limited to, quality standards, and to require compliance with those standards; 6. Discharge, suspend, demote, reprimand, withhold salary increases and benefits, or otherwise discipline employees in accordance with applicable laws, the Saratoga Municipal Code, Personnel Rules and Administrative Policies; and 7. Relieve employees from duty because of lack of work or lack of funds, or for inability to perform the job as required, subject to the Personnel Rules and Policies. E. Meyers-Milias-Brown Act (MMBA) Nothing in this Article shall relieve the CITY of its obligation to meet and confer on the impact of the exercise of those rights, which are mandatory subjects of bargaining under the Meyers-Milias-Brown Act. III. 7-STEP RANGE TABLE PAY PLAN AND COST OF LIVING ADMINISTRATION Me Too: For any wage or benefit change that UNION members receive in the 2019 UNION MOU that is greater than (the parties agree that “greater than” means a greater total compensation package, except for uniform and clothing allowance) that received in the 2015 UNION MOU, and if the 2019 SEA’s MOU contains a provision on the same subject (except for uniform and clothing allowance), the SEA unit members will receive the same wage or benefit change effective at the same time that UNION receives the change. This provision is expressly agreed to terminate and sunset in its entirety as of June 30, 2023, and will not continue in effect for future contracts, unless an express ratified agreement continues this in effect. Bi-annual salary survey: Consistent with the City’s Personnel Rules and Policies providing for pay range adjustments as a result of the bi-annual wage survey of comparable cities, the language will apply to SEA. Effective July 1, 2020, the City agrees to provide a one-time salary adjustment for any SEA positions that fall below the market average. Effective July 1, 2022 the City agrees to provide a one-time salary adjustment for any SEA positions that fall below market average. This provision on the one-time salary adjustment for positions below market average that is effective July 1, 2020 and is effective again on July 1, 2022, is expressly agreed to terminate and sunset 46 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SARATOGA AND SEA (2019-2023) 3 in its entirety as of July 31, 2022, and will not continue in effect for future contracts, unless an express ratified agreement continues this in effect. Consistent with the Personnel Rules, Article 12. Section 9. Pay Range Establishment, salary ranges are established by the collection of data from the following comparable cities: Los Altos, San Carlos, Los Gatos, Campbell, Menlo Park, Cupertino, and Morgan Hill. A. 7-Step Range Table Pay Plan and Annual Cost of Living Adjustment The package proposal is proposed to be effective on the later of (1) July 1, 2019 or (2) the pay period following the pay period in which the MOU is ratified by City Council. (Council will only consider ratifying the MOU after SEA has already ratified it). There will be no retroactive salary increases if ratification occurs after July 1, 2019. If ratified before July 1, 2019: Cost of Living Adjustment (COLA): For each July 1 of the four years of this MOU (starting July 1, 2019), each SEA member shall receive an annual cost-of-living adjustment of no less than one percent (1.0%) and no greater than the following annual maximum, as based upon the annual average for the 12 month period of January to December of the U.S. Department of Labor, Bureau of Labor Statistics, “All Urban Consumers (CPI-U)” for the “San Francisco-Oakland-Hayward” region. Maximum caps of 3.87% on July 1, 2019, 3.13% on July 1, 2020, 3.00% on July 1, 2021, and 3.00% on July 1, 2022. See Exhibit A for the fiscal year 2019-20 7-step range table pay plan. B. Compensation Pay: Employees occupying a position in a classification covered by this MOU shall be paid a base salary (exempt FLSA status) or hourly rate of pay (non-exempt FLSA status) within the range established for that position’s classification. Placement Within 7-Step Range Table: The CITY will determine placement consistent with the Personnel Rules and Policies. Progression Within 7-Step Range Table: Each employee will be eligible to receive a salary increase to the next higher step within the range of their assigned classification upon the employee’s anniversary date (anniversary date means an annual increment after an original start date of employment, reclassification, promotion, or demotion). Eligibility for Progression within 7-Step Range: All regular and eligible employees (with reference to the paragraph immediate above) will be evaluated on an anniversary basis and will advance in their pay range based on anniversary performance evaluation results during the one-year anniversary step increment portion of the pay range table (Steps 1-5). While employee is progressing within Steps 1-5, increases in pay shall be contingent upon a satisfactory anniversary evaluation of the employee’s performance, and shall require recommendation of the Department Director. In the case that an employee receives a cumulative rating of less than “meets expectations” on the anniversary performance evaluation, the employee will not receive a pay increase other than an approved and 47 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SARATOGA AND SEA (2019-2023) 4 budgeted cost-of-living increase in accordance with Article III. 7-Step Range Table Pay Plan and Cost of Living Administration, Section B. Cost of Living Adjustment. An employee who is denied an increase in pay may discuss such denial with his/her Department Director and the City Manager (or his/her designee). The decision of the City Manager (or his/her designee) shall be final. An employee who has received a cumulative rating of meets expectations or greater during the anniversary employee performance evaluation will be eligible to receive a pay increase of five percent (5%) (1 step) above their existing pay while progressing from Step 1 to Step 5. The employee shall advance to Step 6 after four (4) years of service in the same classification at Step 5. The employee shall advance to Step 7, the top of the range, after another four (4) years of service in the same classification at Step 6. Negotiated Increases -- All negotiated pay increases shall apply at all steps in the range, including applying to an employee who is receiving the multi-year 5% steps (Step 6 and Step 7). Promotion: Promotion is the movement of an employee from one classification to another classification having a higher salary range. At the time an employee is promoted, his or her salary shall be adjusted as follows: If the first step in the salary range for the employee’s new position is at least five percent (5%) greater than the employee’s current salary range, the employee shall be moved to the first step of the new salary range. If the first step in the salary range for the employee’s new position is less than five percent (5%) greater than the employee’s current salary range, the employee shall be moved to the step which would provide, at a minimum, a five percent (5%) increase in salary. If no step in the salary range for the new position would provide the employee with at least a five percent (5%) salary adjustment, the employee shall be moved to the top step of the new salary range. All promotional appointments shall be subject to a probationary period of one year. During the probationary period, a supervisor may evaluate an employee at any time. Upon successful completion of the twelve-month probationary period, a written evaluation will be prepared. At the completion of a successful probationary period, the employee shall be granted regular employment status and may advance in his/her salary range as part of the anniversary evaluation process. If it is determined through employee performance evaluation that an employee subject to a promotional appointment does not pass probation, the probationary employee shall be reinstated to the position from which he or she was promoted provided that position is vacant and funded and provided that the employee subject to not passing probation did not violate the Personnel Rules and Policies' list of causes for discipline (except that an employee who has unsatisfactory job performance based on lack of knowledge, skills, and abilities required of the higher classification will be allowed reinstatement to the lower 48 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SARATOGA AND SEA (2019-2023) 5 classification if the conditions are met.) If no vacancy exists, the employee may ask to be placed on a re-employment list. C. Anniversary Employee Evaluations The CITY administers an anniversary employee evaluation process. The process includes a voluntary self-evaluation prepared by the employee and a performance evaluation prepared by the employee’s supervisor/manager. Ratings on the Performance Evaluation are tied to the competency progression scale 50 to 100: 50 Unsatisfactory, 60,62,64,66,68 Approaching Expectations, 70,72,74,76,78 Meets Expectations, 80,82,84,86,88 Meets & Exceeds Expectations, 90,92,94,96,98,100 Meritorious/Outstanding. The employee is rated on his/her performance in up to eight (8) categories: • Customer Service • Teamwork • Job/Functional Skills • Accountability • Initiative • Communication • Flexibility/Adaptability and Change • Supervision, if applicable The employee receives a composite score based upon individual ratings received under each category. An employee who has received a cumulative rating of 70 points or greater during the anniversary employee performance evaluation will be eligible to receive a pay increase of five percent (5%) (1 step) above their existing pay until the employee reaches Step 5. IV. WORKING CONDITIONS The CITY will continue to operate on a 9/80 work schedule to be determined by the City Manager and Directors where a full-time work week constitutes forty (40) hours within seven consecutive 24-hour days, also defined as one hundred sixty-eight (168) hours. Employees on a 9/80 schedule are scheduled to work eight (8) nine-hour days, one (1) eight-hour day and have one day off every two weeks. An employee’s workweek begins in the middle of the employee’s eight-hour day and the employee’s day off is on the same day of the week in the following week. For example, the standard 9/80 work schedule for most SEA members is as follows: Sunday Monday Tuesday Wednesday Thursday Friday Saturday Off 9 9 9 9 4 (end) off 4 (start) Off 9 9 9 9 Off (end) off Off (start) Off 9 9 9 9 4 (end) off 4 (start) Off 9 9 9 9 Off (end) Off Off (start) 49 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SARATOGA AND SEA (2019-2023) 6 Written Authorization signed by the City Manager is required for a work schedule arrangement different from the standard 9/80 schedule. The written authorization must be filed with the Human Resource and Payroll Divisions. Fridays when the CITY is not open for business are referenced as “off-Fridays.” The work period (pay period) is the period encompassing two consecutive work weeks. A holiday furlough will exist whereby the CITY operations are closed from December 24 through January 1 of every year. Two furlough days shall be compensated as a regular day’s salary for each of the next four years (in December 2019, 2020, 2021, and 2022). To be paid for a furlough day, an employee must be on paid status the week of the furlough with the City. All part-time employees and employees on short-term disability shall receive furlough pay on a pro-rata basis. For any remaining furlough days, employees shall utilize their available balances (earned paid time off or earned compensatory time), if applicable. Employees that utilize unpaid leave due to an insufficient leave balance shall maintain regular benefit status. Employees may not utilize unpaid leave prior to exhausting their available balances, except with prior written authorization signed by the City Manager. V. OVERTIME WORK Those employees eligible through the Fair Labor Standards Act for overtime shall receive it according to the law: (1) Overtime for all eligible SEA members shall be defined as any time worked beyond the standard work week as described above. The 9/80 work schedule may not be used in any application that requires entitlement to FLSA overtime as the CITY and SEA agree to the 9/80 work schedule; (2) Overtime compensation shall be computed at one-and-a-half times the employee’s regular rate of pay for hours worked over 40 hours in one workweek; Overtime is paid only for hours worked beyond 40 hours in a week, not hours paid. All employee overtime must be preapproved in advance of the employee working overtime and in writing by the Department Head. The employee’s written authorization to work overtime is required to be turned in with the employee’s time sheet for each pay period. VI. STANDBY PAY Non-exempt employees may be assigned to standby duty as determined and as assigned in advance by the City Manager or Department Head. Employees assigned to standby duty must report for duty within one hour of notification and be able to perform the duties as assigned. Employees assigned to standby duty will be issued City cell phones and must answer telephone calls. Employees are compensated $50.00 for each weeknight, defined as from the end of the employee’s work day's shift to the beginning of the next day's shift, and $100.00 per day for each weekend, defined as the end of the employee’s workday on Thursday of an off-Friday week or Friday of an on-Friday week to the beginning of the next workday (off-Friday, Saturday, Sunday), or holiday assigned to standby status, unless an employee’s regularly scheduled work day includes an off-Friday, Saturday, or Sunday. If an employee’s regularly scheduled work day includes an off-Friday, Saturday, or Sunday, such an employee receives 50 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SARATOGA AND SEA (2019-2023) 7 only the $50.00 for standby after working the employee’s regularly scheduled shift. VII. CALL OUT PAY Non-exempt employees who are called out to perform work of an emergency nature after the employee’s regularly scheduled workday are compensated for a minimum of three (3) hours for each occurrence at one and one-half (1.5) times the employee's regular hourly rate of pay. Employees will be compensated from the time they leave their residence until their direct return home after being released from the assignment. A second call out while responding to the first does not restart the clock. For example, if an employee is responding to a call out that begins at 2 p.m. and receives a second call at 2:15 p.m., and both calls are addressed, and the employee is home by 3 p.m., both calls are within the three-hour minimum. VIII. DIFFERENTIAL FOR SPLIT SHIFT SEA members in the Facilities Maintenance classification shall receive an additional $25.00 for each day when required to work a split shift. A split shift means a work schedule that is interrupted by non-paid and non-working periods of more than one hour scheduled by the City other than rest or meal periods. For example, if the City scheduled a Facilities Maintenance employee to work from 8 to 11 a.m. and again the same day from 2 to 7 p.m., the break of more than one-hour mid- day is a split shift. IX. MEAL REIMBURSEMENT The CITY will provide a meal or reimburse the cost of a meal up to $10.00 for each employee who is required to work extended overtime or who is required to work an extended emergency call out. Meal reimbursement is available if the employee works more than ten (10) consecutive hours during a scheduled work day or if the employee works more than four (4) hours during an emergency call out. Two meals will be provided if work is required more than eight (8) hours during an emergency call out. X. BENEFITS A. Health and Dental – In-Lieu Payments An employee who completes and submits required documents (1) to prove that the employee has other health insurance coverage and (2) to waive City-provided health insurance coverage will receive a payment per month of $400.00 as additional taxable wages. The employee must complete and submit any required documents and provide proof of other health insurance coverage during open enrollment (in or around October) to be eligible for the cash-in-lieu payment beginning the following January 1. Only qualifying events as defined by law allow employees to make a change to their health, dental, and/or in-lieu enrollment elections during the year (outside of the annual open enrollment period). Any employee who declines to accept coverage in the Dental Plan, evidenced by signing a waiver form, shall receive a monthly in-lieu payment of $25.00. 51 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SARATOGA AND SEA (2019-2023) 8 B. Health and Dental Premium Contributions Effective January 1, 2016, the City will provide a monthly health insurance contribution for each employee’s selected level of coverage as follows in the chart below: Employee Employee Plus One Employee Plus Two (Family) $800.00 $1,600.00 $2,080.00 As of January 1, 2017, the City’s monthly health insurance contribution will be adjusted annually as follows. 1. Prior to the beginning of the CalPERS open enrollment period, the City will compare the average monthly cost of all plans offered in the next calendar year for each level of coverage (Employee, Employee + 1, and Employee +2) with the current year average monthly costs for each level of coverage. The average will be calculated by adding the cost for each plan at the same level of coverage and then dividing by the number of plans. 2. If the average cost for a level of coverage in the next calendar year will exceed the average cost for the same level in the current year, then the City’s monthly contribution for that level of coverage will be increased by 50% of the difference of the two yearly averages. 3. If the average cost for a level of coverage in the next calendar year is below the average cost for the same level in the current year, then the City monthly contribution for that level of coverage will not change. The adjusted City contribution for each level of coverage for the next calendar year will be provided to the employees prior to the beginning of the open enrollment period and become effective on January 1 of each year. Examples: (1) The 2016 (base year) City monthly contribution for the family level of coverage is $2,080 and the average cost of all plans at the family level offered in 2017 will be $2,366. The City’s monthly contribution will be increased to $2,168 ($2,366 - $2,190 = $176, 50% of the $176 difference = an increase of $88). The employee would pay the balance of $88 for the plan selected. (2) The 2017 average monthly contribution for the family level of coverage is $2,168 and the average cost of all plans at the family level offered in 2018 will be $2,554. The City’s monthly contribution for 2018 would be increased from $2,168 (the 2017 rate) to $2,262 ($2,554 - $2,366 = $188, 50% of the $188 difference = an increase of $94). The employee would pay the balance of $94 for the plan selected. Based on this formula, effective January 1, 2019, the City will provide a monthly health insurance contribution for each employee’s selected level of coverage as follows in the chart below: Employee Employee Plus One Employee Plus Two (Family) $816.00 $1,632.00 $2,122.00 The City contributes 100% of the dental premium for regular, full-time employees. 52 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SARATOGA AND SEA (2019-2023) 9 C. Deferred Compensation (457 Plan) The CITY provides employees the opportunity to contribute toward an IRS Section 457 deferred compensation plan. Employees may contribute an amount up to a federally mandated maximum per calendar year on a pre-tax basis. If ratified by both parties before July 1, 2019, effective July 1, 2019, the City will contribute $50.00 per month to the employee’s 457 Plan, which does not require the employee match that amount. In addition, the City will contribute up to $100.00 per month to the employee’s 457 Plan, matching the employee’s contribution of up to $100.00. This provision is expressly agreed to terminate and sunset in its entirety as of June 30, 2023, and will not continue in effect for future contracts, unless an expressly ratified agreement continues this in effect. D. Life and Accidental Death Insurance The CITY provides $50,000 of life and accidental death and dismemberment insurance for all non-management, and $100,000 of life and accidental death and dismemberment insurance for mid-management employees. SEA members designated mid-management include: Facilities Maintenance Manager, Senior Civil Engineer, Senior Planner, IT Supervisor, and Senior Arborist. Coverage shall begin on the first day of the month following date of hire and ends on the date of separation. Employees may purchase additional life insurance for themselves and/or their dependents; however, availability of additional insurance is subject to the group carrier's requirements. E. Administrative Leave Administrative Leave is compensated time off given to regular, full-time exempt employees of the CITY. This leave shall be taken in a manner consistent with Paid Time Off (PTO). Use of administrative leave is a privilege and is provided in recognition that CITY projects often require employees to devote whatever hours are necessary, irrespective of a regular scheduled workweek, to fulfill the obligations of the job. CITY shall grant SEA members in exempt classifications, on a fiscal year basis, twenty (20) hours of administrative leave. Such leave shall be taken in a manner consistent with the use of PTO. Administrative leave cannot be carried over from year to year and must be used by June 30 of the fiscal year in which it was accrued. Administrative Leave must be exhausted prior to using PTO. CITY shall grant SEA members in the exempt classification of Senior Planner, on a fiscal year basis, an additional (20) hours of administrative leave for a total of (40) hours of administrative leave. Such leave shall be taken in a manner consistent with the use of PTO. Administrative leave cannot be carried over from year to year and must be used by June 30 of the fiscal year in which it was accrued. Administrative Leave must be exhausted prior to using PTO. Administrative Leave Timecard Reporting: Administrative Leave must be taken by exempt employees in increments of (1) hour or more in a workday (29 CFR 541.710). For example, when the employee leaves work one hour early to take care of personal business. 53 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SARATOGA AND SEA (2019-2023) 10 F. Paid Time Off (PTO) FY PTO Cash-Out Option Effective Fiscal Year 2012-2013 through Fiscal Year 2019- 2023: A PTO Cash-Out Option will not be made other than at the time of termination, except for the optional PTO cash-out plan described as follows: If an employee has used the required minimum of 80 accrued hours of PTO in the prior fiscal year, the employee is eligible to cash out up to a maximum of 200 accrued hours of PTO per fiscal year on approximately September 1 and/or March 1. An employee must maintain a minimum balance of 200 hours of accrued PTO after the cash out. PTO Accruals: Effective September 1, 2011, the PTO accrual cap of 600 hours in the Personnel Rules will be enforced. Under no circumstances can an employee accrue more than the accrual PTO cap at any point in time. Once an employee reaches the accrual cap, no additional PTO will accrue until the employee uses his or her accrued PTO and reduces the balance to less than the accrual cap. Thereafter, PTO benefits will continue to accrue on a prospective basis only until the employee reaches the cap. No retroactive credit will be given for the time when accrued PTO was at the cap. PTO Timecard Reporting: PTO must be taken by exempt employees in increments of one hour or more in a workday. For example, when the employee leaves work one hour early to take care of personal business. XI. CONFIDENTIAL EMPLOYEES The CITY may designate certain employees as “Confidential.” Confidential employees are privy to management decisions and related confidential information regarding employer/employee relations. Confidential employees assigned to the positions listed below shall be restricted from representing SEA on matters within the scope of representation. Effective on the date of this agreement, employees occupying the following positions are designated as “Confidential”: Position List Department Executive Assistant CM Department Accounting Technician and Lead F&A Department Accountant I/II F&A Department Administrative Analyst I/II (new position effective 7/1/19) F&A Department IT Supervisor F&A Department XII. RETIREMENT (PERS) The CITY is a contracting agency of the California Public Employees Retirement System (PERS). Regular employees become members immediately upon employment and become vested after five years of full-time service. Tier 1: CalPERS Retirement Plan of 2%@55 for Employees Hired Before July 1, 2011: The CITY, through its contract with PERS, provides for retirement benefits for any employee hired before July 1, 2011 as defined by the 2%@55 retirement plan formula (contract effective date: September 1, 1999). The City’s 2%@55 contract with PERS includes Government Code 20042 – 54 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SARATOGA AND SEA (2019-2023) 11 the final compensation is the average full-time monthly pay rate for the highest 12 consecutive months. Effective September 1, 2011, each employee covered by the 2%@55 retirement plan formula will pay 7% of the employee’s compensation on a pre-tax basis. Tier 2: CalPERS Retirement Plan of 2%@60 for Employees Hired July 1, 2011 through December 31, 2012: Each employee covered by the 2%@60 plan will pay 7% of the employee’s compensation on a pre-tax basis. Tier 3: New Hire CalPERS Retirement Plan for Employees Hired January 1, 2013 and After: Any employee hired on or after January 1, 2013, who does not meet the exceptions as specified in state law to be a “classic” member of PERS, will receive the following 3rd tier retirement option: a) A retirement plan of 2% at 62 as required by state law (PEPRA). b) Each employee will pay on a pre-tax basis 100% of the employee’s contribution as determined by PERS toward the CalPERS 2%@62 retirement plan. An employee hired after January 1, 2013 who meets an exception under state law to be a “classic” member of PERS will receive the second-tier plan of 2% at 60 noted above. XIII. UNIFORM AND CLOTHING ALLOWANCES Each regular full-time employee in the following positions shall receive an allowance of $200 per fiscal year for the purchase of safety boots, protective clothing, and laundering of uniform shirts: • Facilities Maintenance Worker I/II/III, Lead • Facilities Maintenance Manager • Building Inspectors • Code Compliance Officer Three shirts per employee per year are purchased directly by the City in the colors designated by the City. This $200 allowance shall be paid on the second pay date in July. The allowance shall be prorated from the date of hire for a newly hired employee. The allowance is reported to PERS as salary earned for Classic employees (not reported as special pay for PEPRA employees). XIV. TUITION REIMBURSEMENT All regular employees of the CITY who have been employed continually for at least one year prior to the commencement of an approved or required course are eligible for the CITY’s tuition reimbursement program. A. Coursework for Degree or Certificate If the course(s) taken is/are job related or in fulfillment of the requirements for a degree or certificate, one-hundred percent (100%) reimbursement will be afforded for tuition, fees and books by the CITY up to a maximum of two thousand five hundred dollars ($2,500) per employee per fiscal year. The Department Head and City Manager will determine job- relatedness. 55 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SARATOGA AND SEA (2019-2023) 12 B. Coursework for Professional Development If the course(s) is/are not specifically related to the employee’s current position, and does not fulfill the requirements for a degree or certificate, but does provide for professional development related to the worker’s position of employment or a higher position in the CITY, reimbursement will be afforded for tuition, fees and books by the CITY at one-hundred percent (100%), up to a maximum five hundred dollars ($500) per employee per fiscal year. Reimbursement will be afforded after successful completion of the course(s) requirements. Successful completion is defined as a "C" grade or a "Pass" on a pass-fail system. XV. GRIEVANCE PROCEDURE A. Policy: The goal of this grievance procedure is to make every reasonable effort to resolve applicable complaints as near as possible to the point of origin. B. Eligibility to File a Grievance: A grievant is a regular employee who is personally affected by an act or omission that occurred no more than 15 calendar days prior to the reporting of the grievance, provided that the act or omission comes within the definition of “grievance” as described herein. C. Definition of “Grievance”: Subject to the exclusions, a grievance is defined as any dispute that: (1) is job-related, (2) is wholly or partially within the province of the CITY to rectify or remedy, (3) concerns terms and conditions of employment, (4) involves the interpretation, application, or alleged violation of a specific section or provision of the current MOU between the CITY and SEA, and (5) is not subject to any other CITY dispute resolution process or procedure that is provided by statute, ordinance, resolution or agreement. D. Exclusions from the Grievance Procedure: The following matters are excluded from the definition of “grievance”: 1. Requests for changes in wages, hours, or working conditions, including any impasse or dispute in the meeting and conferring process or matter within the scope of representation; 2. Requests for changes in the content of employee evaluations or performance reviews, oral or written warnings, reprimands or counseling; 3. Challenges to a reclassification, layoff, transfer, denial of reinstatement, or denial of a step or merit increase; 4. Challenges to any disciplinary action; 5. Challenges to examinations or appointment to positions; 6. Management of the CITY generally, or issues of CITY or Department policy; 7. Determination of the nature, necessity or organization of any service or activity conducted by the CITY, including the decisions to expand or reduce services or the workforce, and/or to impose layoffs; 8. Methods of financing; 56 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SARATOGA AND SEA (2019-2023) 13 9. Determination of and/or change in facilities, equipment, methods, technology, means or size of the work force; 10. Determination of or change in the location, number of locations, relocations and types of operations, processes or materials to be used in carrying out CITY functions; 11. Determination of work assignments and schedules; 12. Determination of productivity or performance programs and standards; 13. Determination of standards, policies, and procedures for selection, training, and promotion of employees; and 14. Establishment, implementation, and modification of Department organizations, supervisory assignments, chains of command, and reporting responsibilities. E. Arbitration and Grievance Procedure: If the SEA believes that the CITY has violated this Agreement, such matters arising during the term of this MOU (“grievances”) will be resolved through this Grievance Procedure, which is the sole and exclusive method of doing so. 1. STEP 1 - The SEA Representative will attempt to resolve the matter with the supervisor. If the matter is not resolved, the SEA will file a written grievance with the CITY’s Human Resources representative within fifteen calendar days after the employee or SEA is aware or reasonably should be aware of the act or omission that caused the grievance. The grievance shall specify the date(s) of the alleged violation(s) and the provisions of the Agreement applicable to the dispute. A grievance not filed in writing within the above time shall be invalid or waived, excepting any complaint relative to wages shall not be deemed invalid or waived until thirty (30) calendar days after origin of cause of the complaint and in no event shall an employee be deprived of actual wages due. 2. STEP 2 - The CITY shall answer the grievance in writing within fourteen (14) calendar days after the written grievance is filed. The City Human Resources representative and the SEA will discuss the grievance during this period. If the grievance is not settled, the SEA may advance it to Step 3 by giving written notice to the City Manager within seven (7) calendar days after the CITY Human Resources representative answers the grievance in writing. If the CITY does not timely file an answer, the grievance will automatically advance to Step 3, and the SEA may request to meet with the CITY manager. 3. STEP 3 - During the seven (7) calendar days after a grievance advances to Step 3, the City Manager and the SEA will attempt to settle it. If it is not settled during that seven (7) calendar day period, the SEA may advance it to Arbitration by delivering written notice to the City Manager within fourteen (14) calendar days after the end of the seven (7) calendar day period. In the absence of such written notice, the grievance will be settled based on the CITY’s answer. The time limits in this Grievance Procedure may be extended by mutual written agreement. Each party will provide the other with a current address of that party’s representatives identified above. 57 58 CITY OF SARATOGA Position Salary Range Table as of July 1, 2019 1.0387 POSITION TITLE (FLSA Classification) 1 2 3 4 5 6 7 SARATOGA EMPLOYEES ASSOCIATION Accountant II 3,816.80 4,008.00 4,208.80 4,419.20 4,640.00 4,872.00 5,116.00 (FLSA Exempt)99,236.80 104,208.00 109,428.80 114,899.20 120,640.00 126,672.00 133,016.00 47.71 50.10 52.61 55.24 58.00 60.90 63.95 Accounting Technician 2,874.40 3,018.40 3,169.60 3,328.00 3,494.40 3,668.80 3,852.00 (FLSA Non-Exempt)74,734.40 78,478.40 82,409.60 86,528.00 90,854.40 95,388.80 100,152.00 35.93 37.73 39.62 41.60 43.68 45.86 48.15 Accounting Technician - Lead 3,161.60 3,320.00 3,486.40 3,660.80 3,844.00 4,036.00 4,237.60 (FLSA Non-Exempt)82,201.60 86,320.00 90,646.40 95,180.80 99,944.00 104,936.00 110,177.60 39.52 41.50 43.58 45.76 48.05 50.45 52.97 Administrative - Analyst I 3,486.40 3,660.80 3,844.00 4,036.00 4,237.60 4,449.60 4,672.00 (FLSA Exempt)90,646.40 95,180.80 99,944.00 104,936.00 110,177.60 115,689.60 121,472.00 43.58 45.76 48.05 50.45 52.97 55.62 58.40 Administrative - Analyst II 3,816.80 4,008.00 4,208.80 4,419.20 4,640.00 4,872.00 5,116.00 (FLSA Exempt)99,236.80 104,208.00 109,428.80 114,899.20 120,640.00 126,672.00 133,016.00 47.71 50.10 52.61 55.24 58.00 60.90 63.95 Administrative Assistant 2,739.20 2,876.00 3,020.00 3,171.20 3,329.60 3,496.00 3,671.20 (FLSA Non-Exempt)71,219.20 74,776.00 78,520.00 82,451.20 86,569.60 90,896.00 95,451.20 34.24 35.95 37.75 39.64 41.62 43.70 45.89 Administrative Technician 2,874.40 3,018.40 3,169.60 3,328.00 3,494.40 3,668.80 3,852.00 (FLSA Non-Exempt)74,734.40 78,478.40 82,409.60 86,528.00 90,854.40 95,388.80 100,152.00 35.93 37.73 39.62 41.60 43.68 45.86 48.15 Assistant Engineer 3,776.80 3,965.60 4,164.00 4,372.00 4,590.40 4,820.00 5,060.80 (FLSA Non-Exempt)98,196.80 103,105.60 108,264.00 113,672.00 119,350.40 125,320.00 131,580.80 47.21 49.57 52.05 54.65 57.38 60.25 63.26 Associate Engineer 4,253.60 4,466.40 4,689.60 4,924.00 5,170.40 5,428.80 5,700.00 (FLSA Exempt)110,593.60 116,126.40 121,929.60 128,024.00 134,430.40 141,148.80 148,200.00 53.17 55.83 58.62 61.55 64.63 67.86 71.25 Building Inspector 3,681.60 3,865.60 4,059.20 4,262.40 4,475.20 4,699.20 4,934.40 (FLSA Non-Exempt)95,721.60 100,505.60 105,539.20 110,822.40 116,355.20 122,179.20 128,294.40 46.02 48.32 50.74 53.28 55.94 58.74 61.68 Code Compliance Officer 3,266.40 3,429.60 3,600.80 3,780.80 3,969.60 4,168.00 4,376.80 (FLSA Non-Exempt)84,926.40 89,169.60 93,620.80 98,300.80 103,209.60 108,368.00 113,796.80 40.83 42.87 45.01 47.26 49.62 52.10 54.71 Community Engagement Coordinator 2,738.40 2,875.20 3,019.20 3,170.40 3,328.80 3,495.20 3,669.60 (FLSA Non-Exempt)71,198.40 74,755.20 78,499.20 82,430.40 86,548.80 90,875.20 95,409.60 34.23 35.94 37.74 39.63 41.61 43.69 45.87 Environmental Program Administrator 4,008.00 4,208.80 4,419.20 4,640.00 4,872.00 5,116.00 5,372.00 (FLSA Exempt)104,208.00 109,428.80 114,899.20 120,640.00 126,672.00 133,016.00 139,672.00 50.10 52.61 55.24 58.00 60.90 63.95 67.15 Executive Assistant 3,122.40 3,278.40 3,442.40 3,614.40 3,795.20 3,984.80 4,184.00 (FLSA Non-Exempt)81,182.40 85,238.40 89,502.40 93,974.40 98,675.20 103,604.80 108,784.00 39.03 40.98 43.03 45.18 47.44 49.81 52.30 Facility Coordinator 2,738.40 2,875.20 3,019.20 3,170.40 3,328.80 3,495.20 3,669.60 (FLSA Non-Exempt)71,198.40 74,755.20 78,499.20 82,430.40 86,548.80 90,875.20 95,409.60 34.23 35.94 37.74 39.63 41.61 43.69 45.87 Facility Maintenance - Lead 3,087.20 3,241.60 3,404.00 3,574.40 3,752.80 3,940.80 4,137.60 (FLSA Non-Exempt)80,267.20 84,281.60 88,504.00 92,934.40 97,572.80 102,460.80 107,577.60 38.59 40.52 42.55 44.68 46.91 49.26 51.72 Facility Maintenance Manager 4,066.40 4,269.60 4,483.20 4,707.20 4,942.40 5,189.60 5,448.80 (FLSA Exempt)105,726.40 111,009.60 116,563.20 122,387.20 128,502.40 134,929.60 141,668.80 50.83 53.37 56.04 58.84 61.78 64.87 68.11 Facility Maintenance - Worker III 2,763.20 2,901.60 3,046.40 3,198.40 3,358.40 3,526.40 3,702.40 (FLSA Non-Exempt)71,843.20 75,441.60 79,206.40 83,158.40 87,318.40 91,686.40 96,262.40 34.54 36.27 38.08 39.98 41.98 44.08 46.28 IT Supervisor 4,306.40 4,521.60 4,748.00 4,985.60 5,235.20 5,496.80 5,772.00 (FLSA Exempt)111,966.40 117,561.60 123,448.00 129,625.60 136,115.20 142,916.80 150,072.00 53.83 56.52 59.35 62.32 65.44 68.71 72.15 IT Technician 3,192.00 3,352.00 3,520.00 3,696.00 3,880.80 4,075.20 4,279.20 (FLSA Non-Exempt)82,992.00 87,152.00 91,520.00 96,096.00 100,900.80 105,955.20 111,259.20 39.90 41.90 44.00 46.20 48.51 50.94 53.49 FY 2019/20 SARATOGA EMPLOYEE ASSOCIATION STEP RANGES Z:\Admin Services\Payroll Files\SALARY RANGES MASTER\FY 2019-20\FY 2019-20 Salary Schedule at 7.1.2019 7/9/2019 59 CITY OF SARATOGA Position Salary Range Table as of July 1, 2019 FY 2019/20 POSITION TITLE (FLSA Classification) 1 2 3 4 5 6 7 Office Specialist III 2,652.80 2,785.60 2,924.80 3,071.20 3,224.80 3,386.40 3,556.00 (FLSA Non-Exempt)68,972.80 72,425.60 76,044.80 79,851.20 83,844.80 88,046.40 92,456.00 33.16 34.82 36.56 38.39 40.31 42.33 44.45 Permit Technician 2,874.40 3,018.40 3,169.60 3,328.00 3,494.40 3,668.80 3,852.00 (FLSA Non-Exempt)74,734.40 78,478.40 82,409.60 86,528.00 90,854.40 95,388.80 100,152.00 35.93 37.73 39.62 41.60 43.68 45.86 48.15 Planner - I 3,408.00 3,578.40 3,757.60 3,945.60 4,143.20 4,350.40 4,568.00 (FLSA Exempt)88,608.00 93,038.40 97,697.60 102,585.60 107,723.20 113,110.40 118,768.00 42.60 44.73 46.97 49.32 51.79 54.38 57.10 Planner - II 3,950.40 4,148.00 4,355.20 4,572.80 4,801.60 5,041.60 5,293.60 (FLSA Exempt)102,710.40 107,848.00 113,235.20 118,892.80 124,841.60 131,081.60 137,633.60 49.38 51.85 54.44 57.16 60.02 63.02 66.17 Public Works Inspector 3,776.80 3,965.60 4,164.00 4,372.00 4,590.40 4,820.00 5,060.80 (FLSA Exempt)98,196.80 103,105.60 108,264.00 113,672.00 119,350.40 125,320.00 131,580.80 47.21 49.57 52.05 54.65 57.38 60.25 63.26 Sr. Arborist 4,306.40 4,521.60 4,748.00 4,985.60 5,235.20 5,496.80 5,772.00 (FLSA Exempt)111,966.40 117,561.60 123,448.00 129,625.60 136,115.20 142,916.80 150,072.00 53.83 56.52 59.35 62.32 65.44 68.71 72.15 Sr. Civil Engineer 4,956.00 5,204.00 5,464.00 5,737.60 6,024.80 6,326.40 6,642.40 (FLSA Exempt)128,856.00 135,304.00 142,064.00 149,177.60 156,644.80 164,486.40 172,702.40 61.95 65.05 68.30 71.72 75.31 79.08 83.03 Sr. Planner 4,306.40 4,521.60 4,748.00 4,985.60 5,235.20 5,496.80 5,772.00 (FLSA Exempt)111,966.40 117,561.60 123,448.00 129,625.60 136,115.20 142,916.80 150,072.00 53.83 56.52 59.35 62.32 65.44 68.71 72.15 STEP RANGES Z:\Admin Services\Payroll Files\SALARY RANGES MASTER\FY 2019-20\FY 2019-20 Salary Schedule at 7.1.2019 7/9/2019 60 RESOLUTION NO. 19-027 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SARATOGA ADOPTING MEMORANDUM OF UNDERSTANDING FOR THE "SEA" Saratoga Employee Association) July 1, 2019 to June 30, 2023 WHEREAS, representatives of the City and the SEA have reached agreement on matters relating to the employment conditions of said employees, as reflected by the written Tentative Agreement for the Memorandum of Understanding; and WHEREAS, the Tentative Agreement for the Memorandum of Understanding was ratified by the SEA membership on May 1, 2019 and presented to the City Council on May 15, 2019; and WHEREAS, this Council finds that the terms and conditions contained in said Tentative Agreement for the Memorandum of Understanding fair and proper and in the best interest of the City. NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Saratoga the terms and conditions contained in said Tentative Agreement for the Memorandum of Understanding for the "SEA" July 1, 2019 to June 30, 2023 are hereby ratified and adopted as the Memorandum of Understanding. The above and foregoing resolution was passed and adopted at a regular meeting of the Saratoga City Council held on the l5th day of May 2019 by the following vote: AYES: Mayor E. Manny Cappello, Vice Mayor Howard Miller, Council Members Rishi Kumar, Mary -Lynne Bernald, Yan Zhao NOES: ABSENT: ---' ABSTAIN: y Cappello, Mayor AT : DATE: 5723 % o I j Debbie Bretschneider, City Clerk 61 X:\Negotiations\2019 General\Holiday Sch 20206/26/201911:30 AM ACTUAL DAY ACTUAL DATE DAY OBSERVED DATE OBSERVED Wednesday January 1, 2020 Wednesday January 1, 2020 Monday January 20, 2020 Monday January 20, 2020 Monday February 17, 2020 Monday February 17, 2020 Monday May 25, 2020 Monday May 25, 2020 Saturday July 4, 2020 Friday July 3, 2020 Monday September 7, 2020 Monday September 7, 2020 Monday October 12, 2020 Monday October 12, 2020 Wednesday November 11, 2020 Wednesday November 11, 2020 Thursday November 26, 2020 Thursday November 26, 2020 Friday (OFF FRI)November 27, 2020 Monday December 28, 2020 Thursday December 24, 2020 Thursday December 24, 2020 Friday (OFF FRI)December 25, 2020 Wednesday December 23, 2020 Thursday December 31, 2020 Thursday December 31, 2020 Sunday Monday Tuesday Wednesday Thursday FRIDAY Saturday 20 21 22 23 24 25 26 Work Day Work Day Holiday - Moved from 12/25/20 (Off Friday) Holiday OFF FRIDAY Sunday Monday Tuesday Wednesday Thursday Friday 2 27 28 29 30 31 1 Saturday Holiday - Moved from 11/27/20 (Off Friday) Paid Furlough Paid Furlough Holiday Holiday President's Day Thanksgiving Day Day after Thanksgiving New Year's Eve Christmas Eve Independence Day Columbus Day Veteran's Day Memorial Day DECEMBER 2020 JANUARY 2021 HOLIDAY FURLOUGH DECEMBER 2020 Labor Day Christmas Day CITY OF SARATOGA 2020 PAID HOLIDAYS HOLIDAY New Year's Day MLK Birthday 62 X:\Negotiations\2019 General\Holiday Sch 20216/26/201911:30 AM ACTUAL DAY ACTUAL DATE DAY OBSERVED DATE OBSERVED Friday January 1, 2021 Friday January 1, 2021 Monday January 18, 2021 Monday January 18, 2021 Monday February 15, 2021 Monday February 15, 2021 Monday May 31, 2021 Monday May 31, 2021 Sunday July 4, 2021 Monday July 5, 2021 Monday September 6, 2021 Monday September 6, 2021 Monday October 11, 2021 Monday October 11, 2021 Thursday November 11, 2021 Thursday November 11, 2021 Thursday November 25, 2021 Thursday November 25, 2021 Friday (OFF FRI)November 26, 2021 Thursday December 23, 2021 Friday (OFF FRI)December 24, 2021 Monday December 27, 2021 Saturday December 25, 2021 Tuesday December 28, 2021 Friday December 31, 2021 Friday December 31, 2021 Sunday Monday Tuesday Wednesday Thursday FRIDAY Saturday 20 21 22 23 24 25 Work Day Work Day Work Day Holiday - Moved from 11/26/21 (Off Friday)Off Friday Sunday Monday Tuesday Wednesday Thursday Friday Saturday 26 27 28 29 30 31 1 Holiday - Moved from 12/24/21 (Off Friday) Holiday - Moved from 12/25/21 (Saturday) Paid Furlough Day Paid Furlough Day Holiday Sunday Monday 2 3 Holiday - Moved from 1/1/22 (Saturday) JANUARY 2022 DECEMBER 2021 Veteran's Day Columbus Day Labor Day DECEMBER 2021 President's Day Thanksgiving Day Day after Thanksgiving Christmas Eve Christmas Day HOLIDAY FURLOUGH JANUARY 2022 CITY OF SARATOGA 2021 PAID HOLIDAYS HOLIDAY New Year's Day MLK Birthday New Year's Eve Memorial Day Independence Day 63 X:\Negotiations\2019 General\Holiday Sch 2022 6/26/2019 11:30 AM ACTUAL DAY ACTUAL DATE DAY OBSERVED DATE OBSERVED Saturday January 1, 2022 Monday January 3, 2022 Monday January 17, 2022 Monday January 17, 2022 Monday February 21, 2022 Monday February 21, 2022 Monday May 30, 2022 Monday May 30, 2022 Monday July 4, 2022 Monday July 4, 2022 Monday September 5, 2022 Monday September 5, 2022 Monday October 10, 2022 Monday October 10, 2022 Friday (OFF FRI)November 11, 2022 Thursday November 10, 2022 Thursday November 24, 2022 Thursday November 24, 2022 Friday (OFF FRI)November 25, 2022 Thursday December 22, 2022 Saturday December 24, 2022 Monday December 26, 2022 Sunday December 25, 2022 Tuesday December 27, 2022 Saturday December 31, 2022 Friday December 30, 2022 Sunday Monday Tuesday Wednesday Thursday Friday Saturday 18 19 20 21 22 23 24 Work Day Work Day Work Day Holiday- Moved from 11/25/22 (Off Friday)Off Friday Holiday Sunday Monday Tuesday Wednesday Thursday Friday Saturday 25 26 27 28 29 30 31 Holiday - Moved from 12/24/22 (Saturday) Holiday - Moved from 12/25/22 (Sunday) Paid Furlough Day Paid Furlough Day Holiday - Moved from 12/31/22 (Saturday) Sunday Monday Tuesday Wednesday Thursday Friday Saturday 1 2 3 4 5 6 7 Holiday - Moved from 1/1/23 (Sunday) Return to work Work Day Work Day Off Friday Columbus Day DECEMBER 2022 CITY OF SARATOGA 2022 PAID HOLIDAYS HOLIDAY Christmas Eve Memorial Day Christmas Day Independence Day New Year's Day MLK Birthday Labor Day JANUARY 2023 President's Day Thanksgiving Day Day after Thanksgiving DECEMBER 2022 Veteran's Day HOLIDAY FURLOUGH New Year's Eve 64 X:\Negotiations\2019 General\Holiday Sch 20236/26/201911:30 AM ACTUAL DAY ACTUAL DATE DAY OBSERVED DATE OBSERVED Sunday January 1, 2023 Monday January 2, 2023 Monday January 16, 2023 Monday January 16, 2023 Monday February 20, 2023 Monday February 20, 2023 Monday May 29, 2023 Monday May 29, 2023 Tuesday July 4, 2023 Tuesday July 4, 2023 Monday September 4, 2023 Monday September 4, 2023 Monday October 9, 2023 Monday October 9, 2023 Saturday November 11, 2023 Thursday November 9, 2023 Thursday November 23, 2023 Thursday November 23, 2023 Friday (OFF FRI)November 24, 2023 Tuesday December 26, 2023 Sunday December 24, 2023 Wednesday December 27, 2023 Monday December 25, 2023 Monday December 25, 2023 Sunday December 31, 2023 Tuesday January 2, 2024 Sunday Monday Tuesday Wednesday Thursday Friday Saturday 17 18 19 20 21 22 23 Work Day Work Day Work Day Work Day Off Friday Sunday Monday Tuesday Wednesday Thursday Friday Saturday 24 25 26 27 28 29 30 Holiday Holiday - Moved from 11/24/2023 (Sunday) Holiday - Moved from 12/24/2023 (Sunday) Paid Furlough Day Paid Furlough Day December 2023 Sunday Monday Tuesday Wednesday Thursday Friday Saturday 31 1 2 3 4 5 6 Holiday Holiday - Moved from 12/31/23 (Sunday) Return to Work Work Day Off Friday CITY OF SARATOGA 2023 PAID HOLIDAYS HOLIDAY New Year's Day MLK Birthday President's Day DECEMBER 2023 JANUARY 2024 Thanksgiving Day Day after Thanksgiving Christmas Eve Christmas Day New Year's Eve HOLIDAY FURLOUGH Labor Day Columbus Day Veteran's Day DECEMBER 2023 Memorial Day Independence Day 65 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SARATOGA AND UNION (2019-2023) I. INTRODUCTION MEMORANDUM OF UNDERSTANDING BETWEEN CITY OF SARATOGA AND UNION JULY 1, 2019 TO JUNE 30, 2023 This Memorandum ofUnderstanding (MOU), or "AGREEMENT," dated July 1, 2019, is between the City of Saratoga through its designated representatives, hereinafter referred to as "CITY" and the Northern California Carpenters Regional Council, Carpenters Forty Six Counties Conference Board and Their Affiliated Local Unions, hereinafter referred to as "UNION." This MOU complies with the provisions of the Meyers-Milias-Brown Act, as contained in Section 3500, et seq., ofthe Government Code ofthe State of California in that the employer-employee representatives noted herein did meet in good faith and did reach an understanding on those matters within the scope of representation. II. GENERAL CONDITIONS A. Total Agreement: This Agreement sets forth the full and entire understanding of the parties for the period beginning July 1, 2019, and continuing through June 30,2023. This Agreement shall remain in effect until a new Agreement is signed by both parties. This Agreement supersedes any prior understandings, representations, agreements or promises of any kind, whether written, oral, express, or implied between the parties (including all prior Memoranda of Understanding) with respect to the subject matter of the Agreement. No verbal statement or other amendments, except an amendment mutually agreed upon between the parties and in writing attached to this Agreement designated as an amendment to this Agreement, shall supersede or vary the provisions in this Agreement. If any provision of this Agreement is adjudged to be void or unenforceable, the remainder of the Agreement shall nevertheless remain in effect. Except as specifically provided in this Agreement, it is agreed and understood that the UNION waives its right, and agrees that the CITY shall not be required, to negotiate with respect to any subject or matter covered in this Agreement or with respect to any other matters within the scope of negotiations, during the term of this Agreement. The waiver of any breach, term, or condition of this Agreement by either party shall not constitute a precedent in the future enforcement of all its terms and provisions. B. City Council Approval: City Council approval of the terms of this MOU is incorporated in Resolution No. 19-036 adopted on June 19, 2019. C. Validity of Memorandum: Should any article, section, or portion of this Agreement be held unlawful and unenforceable by any court of competent jurisdiction, the court's decision shall only apply to the specific article, section, or portion of this Agreement directly specified in the decision, and the remainder of this Agreement shall not be affected by the decision. D. CITY Rights: The City reserves, retains, and is vested with any management rights not expressly granted to the UNION by this Agreement. These City rights include but are not limited to the right to: 1. Determine and modify the organization of City government and its constituent work units; 1 66 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SARA TOGA AND UNION (20 19-2023) 2. Determine the nature, standard, levels, and mode of delivery of CITY services; 3. Determine the methods, means, number, and kind of personnel by which CITY services are provided; 4. Determine the procedures and standards for selection for employment and promotions; 5. Establish employee performance standards including, but not limited to, quality standards, and to require compliance with those standards; 6. Discharge, suspend, demote, reprimand, or otherwise discipline employees in accordance with applicable laws, the Saratoga Municipal Code, Personnel Rules and Administrative Policies; and 7. Relieve employees from duty because of lack of work or lack of funds, or for inability to perform the job as required, subject to the Personnel Rules and Policies. Nothing in this Article shall relieve the CITY of its obligation to meet and confer on the impact of the exercise of those rights, which are mandatory subjects ofbargaining under the Meyers-Milias-Brown Act. III. SALARY ADMINISTRATION Bi-annual salary survey: Effective July 1, 2020, the City agrees to provide a one-time salary adjustment for any UNION positions that fall below the market average. Effective July 1, 2022 the City agrees to provide a one-time salary adjustment for any UNION positions that fall below market average. This provision on the one-time salary adjustment for positions below market average that is effective July 1, 2020 and is effective again on July 1, 2022, is expressly agreed to terminate and sunset in its entirety as of July 31, 2022, and will not continue in effect for future contracts, unless an express ratified agreement continues this in effect. Consistent with the Personnel Rules, Article 12. Section 9. Pay Range Establishment, salary ranges are established by the collection of data from the following comparable cities: Los Altos, San Carlos, Los Gatos, Campbell, Menlo Park, Cupertino, and Morgan Hill. A. 7-Step Range Table Pay Plan and Annual Cost-Of-Living Adjustment The package proposal is proposed to be effective on the later of(1) July 1, 2019 or (2) the pay period following the pay period in which the MOU is ratified by City Council. (Council will only consider ratifying the MOU after UNION has already ratified it). There will be no retroactive salary increases if ratification occurs after July 1, 2019. If ratified before July 1, 2019: For each July 1 of the four years of this MOU (starting July 1, 2019), each UNION member shall receive an annual cost-of-living adjustment of no less than one percent (1.0%) and no greater than the following annual maximum, as based upon the annual average for the 12 month period of January to December of the U.S. Department of Labor, Bureau of Labor Statistics, "All Urban Consumers (CPI-U)" for the "San Francisco- Oakland-Hayward" region. Maximum caps of3.87% on July 1, 2019, 3.13% on July 1, 2020, 3.00% on July 1, 2021, and 3.00% on July 1, 2022. See Exhibit A for the fiscal year 2019-20 7-step range table pay plan. For each subsequent year of this MOU (starting July 1, 2023), each UNION member shall receive an annual cost-of-living adjustment of no less than one percent (1.0%) and no greater than two and one-half percent (2.5%) as based upon the annual average for the 12 month 2 67 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SARA TOGA AND UNION (20 19-2023) period of January to December of the U.S. Department of Labor, Bureau of Labor Statistics, "All Urban Consumers (CPI-U)" for the "San Francisco-Oakland-Hayward" region. If the annual average falls below one percent (1.0%), each UNION member shall nevertheless receive a minimum one percent (1.0%) cost-of-living adjustment; if the above Index increases above two and one-half percent (2.5%), each UNION member shall nevertheless receive a maximum two and one-half percent (2.5%) cost-of-living adjustment. B. Compensation Pay: Employees occupying a position in a classification covered by this MOU shall be paid a base salary (exempt FLSA status) or hourly rate of pay (non-exempt FLSA status) within the range established for that position's classification. Placement Within 7-Step Range Table: The CITY will determine placement consistent with the Personnel Rules and Policies. Progression Within 7-Step Range Table: Advancement within an established 7-Step Range Table is considered at the time of employee eligibility. Each employee will be eligible to receive a salary increase to the next higher step within the range of their assigned classification upon July 1 of each year, after each employee has worked at least six ( 6) months, if other eligibility criteria are met. If a new hire has not worked at least six (6) months as of July 1, then that employee's anniversary date will be the next July 1 and each July 1 thereafter. Eligibility for Progression within 7-Step Range: All regular and eligible employees (with reference to the paragraph immediate above) will be evaluated on a fiscal year basis and will advance in their pay range based on fiscal year performance evaluation results during the one-year anniversary step increment portion of the pay range table (Steps 1-5). While employee is progressing within Steps 1-5, increases in pay shall be contingent upon a satisfactory fiscal year evaluation ofthe employee's performance, and shall require recommendation of the Department Director. In the case that an employee receives a cumulative rating of less than "meets expectations" on the performance evaluation, the employee will not receive a pay increase other than an approved and budgeted cost ofliving increase in accordance with Article III., Section A. 7-Step Range Table Pay Plan and Annual Cost-of-Living Adjustment. An employee who is denied an increase in pay may discuss such denial with his/her Department Director and the City Manager (or his/her designee). The decision of the City Manager (or his/her designee) shall be final. An employee who has received a cumulative rating of"meets expectations" or greater during the fiscal year employee performance evaluation will be eligible to receive a pay increase of five percent (5%) (1 step) above their existing pay while progressing from Step 1 to Step 5. The employee shall advance to Step 6 after four ( 4) additional years of service in the same classification at step 5. The employee shall advance to Step 7, the top ofthe range, after another additional four (4) years of service,in the same classification at step 6. Negotiated Increases: All negotiated pay increases shall apply at all steps in the range, including applying to an employee who is receiving the multi-year 5% steps (step 6 and step 7). 3 68 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SARATOGA AND UNION (20 19-2023) Promotion: Promotion is the movement of an employee from one classification to another classification having a higher salary range. At the time an employee is promoted, his or her salary shall be adjusted as follows: If the first step in the salary range for the employee's new position is at least five percent (5%) greater than the employee's current salary range, the employee shall be moved to the first step of the new salary range. If the first step in the salary range for the employee's new position is less than five percent (5%) greater than the employee's current salary range, the employee shall be moved to the step that would provide, at a minimum, a five percent (5%) increase in salary. If no step in the salary range for the new position would provide the employee with at least a five percent (5%) salary adjustment, the employee shall be moved to step 5 of the new salary range. All promotional appointments shall be subject to a probationary period of one year. During the probationary period, a supervisor may evaluate an employee at any time. Upon successful completion of the twelve-month probationary period, a written evaluation will be prepared. At the completion of a successful probationary period, the employee shall be granted regular employment status and may advance in his/her salary range as part of the citywide fiscal year evaluation process. If it is determined through employee performance evaluation that an employee subject to a promotional appointment does not pass probation, the probationary employee shall be reinstated to the position from which he or she was promoted provided that position is vacant and funded and provided that the employee subject to not passing probation did not violate the Personnel Rules and Policies' list of causes for discipline (except that an employee who has unsatisfactory job performance based on lack of knowledge, skills, and abilities required of the higher classification will be allowed reinstatement to the lower classification.) If no vacancy e~ists, the employee may ask to be placed on a re-employment list. C. Working Out of Classification: Employees represented by UNION who are assigned by a Department Head or the City Manager for more than fifteen (15) consecutive working days in a calendar year to perform the essential functions of a position with a higher salary range than they are regularly assigned shall receive increased compensation of at least five percent ( 5%) higher than their regular compensation. Out of Classification assignments are temporary and shall continue as authorized by a Department Head or City Manager, but not exceed one year. Upon completion of an out of classification assignment, an employee will return to his/her regular job classification, salary range, and step. D. Fiscal Year Employee Evaluations: The CITY administers an employee evaluation process each fiscal year. The process includes a voluntary self-evaluation prepared by the employee and a performance evaluation prepared by the employee's supervisor/manager. Ratings on the Performance Evaluation are tied to the competency progression scale 50-100: 50 Unsatisfactory; 60,62,64,66,68 Approaching Expectations; 70,72,74,76,78 Meets Expectations; 80,82,84,86,88 Meets & Exceeds Expectations; 90,92,94,96,98, 100 Meritorious/Outstanding. The employee is rated on his/her performance in up to seven (7) categories: • Customer Service • Job/Functional Skills • Initiative • Teamwork • Accountability • Communication • Flexibility/ Adaptability and Change 4 69 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SARA TOGA AND UNION (20 19-2023) The employee receives a composite score based upon individual ratings received under each category. An employee who has received a cumulative rating of70 points or greater during the fiscal year employee performance evaluation will be eligible to receive a pay increase of five percent (5%) (1 step) above their existing pay until the employee reaches step 5. IV. PROBATIONARY EMPLOYEE AND REGULAR EMPLOYEE Probationary Employee: An employee who is serving a probationary period. The probationary period is part of the selection process. Unless otherwise authorized by the City Manager, probation is a twelve (12) month trial period during which a determination is made as to whether or not an employee is suitable for their position. A new employee serves "at will" and can be dismissed with or without cause by the CITY for any legal reason during the probationary period. Separation Without Cause: At any time during the probationary period, the employment relationship may be terminated without cause and without right of appeal, grievance or hearing. The City Manager or designee must approve the termination. The probationary employee shall be notified prior to the expiration of the probationary period that he or she has been rejected for regular appointment. Regular Appointment Requires Passing Probationary Performance Review: An employee will receive a regular appointment only when he/she receives a "meets expectations" or above rating on his/her written 12-month probationary performance review, resulting in the passing of the probationary period. If the employee does not meet the expectations for the probationary period, he/she will be rejected for regular appointment. Regular Employee: An employee who: (1) is regularly scheduled to work on a continuing basis, (2) has completed the probationary period for the position he or she holds, and (3) holds a budgeted position. V. LAYOFF A. Policy: It is the CITY's intent to avoid employee layoffs whenever possible. When, however, in the CITY's judgment it is necessary to abolish a position of employment, the employee holding the position may be laid off or demoted without disciplinary action and without the right of appeal. The CITY will meet with employees of the affected classification to determine whether a voluntary reduction in hours or other solution may be presented to avoid the pending layoff. B.· Notice: Whenever possible, an employee subject to layoff will be given at least 30-calendar days' notice prior to the effective date of the layoff. Layoff notification will be provided in the form of a "Notice of Layoff." At the time of notice, the employee will also be notified of any displacement rights or rights to reemployment, as described below. C. Order of Layoff: Employees shall be laid off in the following order: (1) temporary employees, (2) part-time employees, (3) probationary employees, (4) regular employees, with all employees being laid off in the inverse order of their seniority within their classification. Seniority is determined by length of service. "Length of service" means employment without interruption, including all days of attendance at work and authorized leaves of absence. Length of service does not include unauthorized absences or periods of suspension or layoff. In cases where two or more employees in the classification have the same seniority determination, the following procedure will be used: Employees shall be laid offbased on the last evaluation rating in the classification, provided that such information has been on file at 5 70 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SARA TOGA AND UNION (20 19-2023) least 30 days and no more than 12 months prior to lay off. In such a case, employees shall be laid off in the following order: (1) employees with an "unsatisfactory" or "below expectations" or similar performance numerical rating, (2) employees having a "meets expectations" or similar performance numerical rating, (3) employees with an "exceeds expectations" or "outstanding" or similar performance numerical rating. If all conditions listed above are equal, the layoff shall be determined by a flip of a coin in the presence of the affected workers. D. Demotion: Upon request of the employee and with approval of the appointing authority, an employee subject to layoff who has not held status in a lower classification may be allowed to demote to a vacant, authorized position in the same department if he/she meets all the requirements of the lower position as determined by the appointing authority. All employees who are demoted under this paragraph will be paid at the rate of pay for the lower position. E. Transfer: The appointing authority may transfer an employee subject to lay off to a vacant, authorized position if the employee is qualified and capable of performing the essential functions of the position as determined by the appointing authority. An employee who is transferred will be paid at the rate of the position to which he or she is transferred. Any employee who does not accept a transfer within 5 working days after a Notice of Transfer is given will have automatically forfeited the ability to transfer. If the transfer involves a change from one department to another, both department directors must consent unless the City Manager orders the transfer for purposes of economy or efficiency. F. Re-Employment: Regular employees who have received a satisfactory or better evaluation for the 12 months prior to lay off and have completed their probationary period at the time of the layoff, shall be automatically placed on a re-employment list for one year for the classification from which they were laid off. This list will be used when a vacancy arises in the same or a lower class of position. Re-employment shall be based on seniority should more than one person in the same classification be laid off from the same department. Employees who are offered and refuse re-employment will be removed from the re- employment list after two refusals of reemployment. Employees re-employed in a lower class, or on a temporary basis, will continue to remain on the list for the higher position for one year. G. Insurance Benefits Upon Layoff: The CITY will extend medical insurance benefits for two months (the remainder ofthe month of separation and one more month) to an employee who has been laid off if the employee was receiving benefits before the layoff. During this two-month period, the CITY will continue to pay the previously established contribution for the employee's medical insurance premium. H. Paid Time Off (PTO): Upon separation from the CITY service, the CITY agrees to pay 100% of the employee's accrued PTO at the employee's regular rate of pay at the time of separation. VI. WORKING CONDITIONS The CITY will continue to operate on a 9/80 work schedule to be determined by the City Manager and Directors where a full-time work week constitutes forty (40) hours within seven consecutive 24-hour days, also defined as one hundred sixty-eight (168) hours. Employees on a 9/80 schedule are scheduled to work 8 nine-hour days, 1 eight-hour day and have one day off every two weeks. An employee's workweek begins in the middle of the employee's eight-hour day and the employee's day off is on the same day ofthe week in the following week. For example, the standard 9/80 work schedule for most UNION members is as follows: 6 71 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SARATOGA AND UNION (2019-2023) Sunday Monday Tuesday Wednesday Thursday Friday Saturday 4 (end) off 9 9 9 9 4 off (start) off (end) off 9 9 9 9 off off (start) 4 (end) off 9 9 9 9 4 off (start) off (end) off 9 9 9 9 off off (start) Written Authorization signed by the City Manager is required for a work schedule arrangement different from the standard 9/80 schedule. The written authorization must be filed with the Human Resource and Payroll Divisions. Fridays when the CITY is not open for business are referenced as "off-Fridays." The work period (pay period) is the period encompassing two consecutive workweeks. A holiday furlough will exist whereby the CITY operations are closed from December 24 through January 1 of every year. Two furlough days shall be compensated as a regular day's salary. To be paid for a furlough day, an employee must be on paid status the week of the furlough with the City. All part-time employees and employees on short-term disability shall receive furlough pay on a pro-rata basis. For any remaining furlough days, employees shall utilize their available balances (earned paid time off or earned compensatory time), if applicable. Employees that utilize unpaid leave due to an insufficient leave balance shall maintain regular benefit status. Employees may not utilize unpaid leave prior to exhausting their available balances, except with prior written authorization signed by the City Manager. VII. FAIR LABOR STANDARDS ACT AND OVERTIME Those employees eligible through the Fair Labor Standards Act for overtime shall receive it in the following way: 1) Overtime for all eligible UNION members shall be defined as any time worked beyond the standard workday or beyond the standard work week as .described above. The 9/80 and/or 4110 work schedule may not be used in any application that requires entitlement to FLSA overtime as the CITY and UNION agree to the 9/80 and 4110 work schedule; 2) Overtime compensation shall be computed at one-and-a-halftimes the employee's regular rate of pay for hours worked more than the standard work hours in one day ~ for time worked over 40 hours in one workweek; 3) All employee overtime must be preapproved in advance of the employee working overtime and in writing by the Department Head. The employee's written authorization to work 7 72 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SARATOGA AND UNION (20 19-2023) overtime is required to be turned in with the employee's time sheet for each pay period. COMPENSATORY TIME OFF IN-LIEU OF OVERTIME Supervisor Approval Required Before Work: An employee may opt to accrue compensatory time- off ("CTO") in lieu of cash payment for overtime worked if his or her supervisor agrees prior to overtime work being performed. Employees must use CTO within 180 days of accrual unless otherwise approved by a Department head. Calculation Rate: CTO be calculated at the appropriate overtime rate. Employee Requests to Use CTO: The CITY will grant an employee's request to use accumulated CTO provided that: (1) the department can accommodate the use ofCTO on the day requested without undue disruption; and (2) the employee makes the request no later than five days prior to the date requested. If the employee does not provide five days' notice, or if the department cannot accommodate the time off, the CITY will provide the employee the opportunity to cash out the CTO requested at the end of the current pay period. CITY Cash Out: The CITY reserves the right to cash out accumulated CTO at any time. Employee Cash Out: During employment, CTO is cashed out at the employee's current FLSA regular rate of pay (including all FLSA-applicable salary differentials). Employees separating from CITY service shall be compensated for all accrued, unused compensatory hours at the current FLSA regular rate of pay. Fiscal Year Cash-Out: All Comp Time Off earned and not used as of June 15 of each fiscal year is automatically cashed out to the employee in the pay period before the fiscal year ends. No accrued and unused Comp Time Off can be carried over to the next fiscal year. VIII. STANDBYPAY Non-exempt employees may be assigned to standby duty as determined and as assigned in advance by the City Manager or Department Head. Employees assigned to standby duty must report for duty within one hour of notification and be able to perform the duties as assigned. Employees assigned to standby duty will be issued City cell phones and must answer telephone calls. Employees are compensated $50.00 for each weeknight, defined as from the end of the employee's work day's shift to the beginning ofthe next day's shift, and $100.00 per day for each weekend, defined as the end of the employee's workday on Thursday of an off-Friday week or Friday of an on-Friday week to the beginning of the next workday (off-Friday, Saturday, Sunday), or holiday assigned to standby status, unless an employee's regularly scheduled work day includes an off-Friday, Saturday, or Sunday. If an employee's regularly scheduled work day includes an off-Friday, Saturday, or Sunday, such an employee receives only the $50.00 for standby after working the employee's regularly scheduled shift. IX. CALL OUT PAY Non-exempt employees who are called out to perform work of an emergency nature after the employee's regularly scheduled workday are compensated for a minimum of three (3) hours for each occurrence at one and one-half (1.5) times the employee's regular hourly rate of pay or two (2) times the employee's regular hourly rate of pay if the call-out is on designated City holidays (refer to XII. Paid Time Off, C. Holidays). Employees will be compensated from the time they leave their residence until their direct return home after being released from the assignment. A second call out while responding to the first does not restart the clock. For example, if an employee is responding to a call out that begins at 2 p.m. and receives a second 8 73 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SARATOGA AND UNION (2019-2023) call at 2:15 p.m., and both calls are addressed, and the employee is home by 3 p.m., both calls are within the three-hour minimum. The City has the right to assign an employee to work on a City-recognized holiday. If the City assigns an employee to work on a City-recognized holiday, the holiday work assignment will occur by placing an employee on standby and using the call-out process for the hours of holiday work. X. MEAL REIMBURSEMENT The CITY will provide a meal or reimburse the cost of a meal up to $10.00 for each employee who is required to work extended overtime or who is required to work on extended emergency call out. Meal reimbursement is available ifthe employee works more than ten (10) consecutive hours during a scheduled workday or if the employee works more than four (4) hours during an emergency call out. Two meals will be provided if work is required more than eight (8) hours during an emerge~cy call out. XI. EMPLOYEE BENEFITS A. Health and Dental-In-Lieu Payments An employee who completes and submits required documents (1) to prove that the employee has other health insurance coverage and (2) to waive City-provided health insurance coverage will receive a payment per month of $400.00 as additional taxable wages. The employee must complete and submit any required documents and provide proof of other health insurance coverage during open enrollment (in or around October) to be eligible for the cash-in-lieu payment beginning the following January 1. Only qualifying events as defined by law allow employees to make a change to their health, dental, and/or in-lieu enrollment elections during the year (outside of the annual open enrollment period). Any employee who declines to accept coverage in the Dental Plan, evidenced by signing a waiver form, shall receive a monthly in-lieu payment of$25.00. · The monthly health and/or dental cash in-lieu payments for regular part-time employees and full- time employees working less than full time will be pro-rated in proportion to the number of hours worked or accrued leave hours paid. B. Health and Dental Premium Contributions Effective January 1, 2016 the City will provide a monthly health insurance contribution for each employee's selected level of coverage as follows in the chart below: Employee Employee Plus One Employee Plus Two (Family) $800.00 $1,600.00 $2,080.00 As of January 1, 2017, the City's monthly health insurance contribution will be adjusted annually as follows. 1. Prior to the beginning of the CalPERS open enrollment period, the City will compare the average monthly cost of all plans offered in the next calendar year for each level of coverage (Employee, Employee+ 1, and Employee +2) with the current year average monthly costs for each level of coverage. The average will be calculated by adding the cost for each plan at the same level of coverage and then dividing by the number of plans. 2. If the average cost for a level of coverage in the next calendar year will exceed the 9 74 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SARA TOGA AND UNION (20 19-2023) average cost for the same level in the current year, then the City's monthly contribution for that level of coverage will be increased by 50% of the difference of the two yearly averages. 3. If the average cost for a level of coverage in the next calendar year is below the average cost for the same level in the current year, then the City monthly contribution for that level of coverage will not change. The adjusted City contribution for each level of coverage for the next calendar year will be provided to the employees prior to the beginning of the open enrollment period and become effective on January 1 of each year. Examples: (1) The 2016 (base year) City monthly contribution for the family level of coverage is $2,080 and the average cost of all plans at the family level offered in 2017 will be $2,366. The City's monthly contribution will be increased to $2,168 ($2,366-$2,190 = $176, 50% of the $176 difference = an increase of $88). The employee would pay the balance of $88 for the plan selected. (2) The 2017 average monthly contribution for the family level of coverage is $2,168 and the average cost of all plans at the family level offered in 2018 will be $2,554. The City's monthly contribution for 2018 would be increased from $2,168 (the 2017 rate) to $2,262 ($2,554- $2,366 = $188, 50% ofthe $188 difference=:= an increase of$94). The employee would pay the balance of $94 for the plan selected. Based on this formula, effective January 1, 2019, the City will provide a monthly health insurance contribution for each employee's selected level of coverage as follows in the chart below: · Employee Employee Plus One Employee Plus Two (Family) $816.00 $1,632.00 $2,122.00 The City contributes 100% of the dental premium for regular, full-time employees. B. Deferred Compensation ( 457 Plan): The City provides employees the opportunity to contribute toward an IRS Section 457 deferred compensation plan. Employees may contribute an amount up to a federally mandated maximum per calendar year on a pre-tax basis. If ratified by both parties before July 1, 2019, effective July 1, 2019, the City will contribute $50.00 per month to the employee's 457 Plan, which does not require the employee match that amount. In addition, the City will contribute up to $100.00 per month to the employee's 457 Plan, matching the employee's contribution of up to $100.00. This provision is expressly agreed to terminate and sunset in its entirety as of June 30, 2023, and will not continue in effect for future contracts, unless an expressly ratified agreement continues this in effect. C. Short Term Disability Insurance: The CITY will pay 75% of a regular employee's full salary for six months and maintain existing insurance benefits, subject to eligibility requirements, for an employee on a disability leave, for three months from the date of the qualifying injury or illness. Short term disability p'ayments will commence only after 12 continuous working days during which the employee is totally disabled, or when all accrued paid time off is exhausted, whichever is later. Short term disability payments are reported to PERS as salary earned. An employee on disability leave is entitled to accrue paid time off within the six ( 6) month period after the date of injury or illness and the accrual of paid 10 75 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SARATOGA AND UNION (20 19-2023) time off shall be prorated based on the number of hours of paid time off that is being utilized by the employee. Upon exhaustion of all PTO, an employee on short term disability leave shall no longer accrue paid time off. In other words, while an employee is receiving the short-term disability payment of 75% of an employee's full salary, the employee will not accrue paid time off. The 75% of salary payment will be reduced for income received through social security and/or workers' compensation. D. Long Term Disability Insurance: The CITY provides a long term disability plan administered by a third party to provide an employee with income protection. Following the six (6) months of short-term disability, the group insurance policy will cover 66% ofthe employee's salary up to a maximum of$2,000 per month. Benefits will be reduced for income received through social security and/or workers' compensation. Payments made to the disabled employee through this group policy are not reported to PERS as salary earned. Employees whose salaries exceed $3,000 monthly are eligible to purchase additional long term disability insurance; however, availability of the plan is subject to the carrier's minimum requirement often (10) enrollees. E. Life Insurance and Accidental Death Insurance: The CITY provides for $50,000 of life and accidental death and dismemberment insurance for all unit members. Coverage shall begin on the first day of the month following date of hire and ends on the date of separation. Employees may purchase additional life insurance for themselves and/or their dependents; however, availability of additional insurance is subject to the group carrier's requirements. F. Employee Assistance Program: Counseling services are available to employees and their immediate family. Programs include personal financial management, stress management, marital and related domestic issues, drug or alcohol dependency, and other personal and work related issues. G. Flexible Medical Spending Plan: Under Section 125 of the Internal Revenue Code, the employee may divert, on a pre-tax basis, up to a federally prescribed maximum of saliJ-ry per year into a Medical Flexible Spending Account for eligible out-of-pocket medical and dental expenses. H. Dependent Care Spending Plan: Under Section 125 ofthe Internal Revenue Code, the employee may divert, on a pre-tax basis, up to a federally prescribed maximum of salary per year into a Dependent Care Flexible Spending Account for eligible out-of-pocket dependent care expenses. I. Long Term Care: Employees may purchase long term care insurance through a group benefits program administered by PERS. J. Legislated Benefits: The following benefits are mandated by law and apply to all CITY employees: 1. Workers' Compensation: This insurance, paid by the CITY, assists employees in the event they become injured on the job or become ill due to their job. 2. Unemployment Insurance Compensation: The State Unemployment Insurance program, which is paid by the CITY, provides an income to employees who become unemployed through no fault of their own. 3. Consolidated Omnibus Budget Reconciliation Act of 1986 (COBRA): A federal health insurance law that requires employers to offer employees and their family members continued participation in employer's group health insurance program, at special rates, following a "qualifying event, "including going on unpaid status while on a California Family Rights Act (CFRA) or Family Medical Leave Act (FMLA) leave and 11 76 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SARATOGA AND UNION (20 19-2023) termination from employment. 4. Health Insurance Portability and Accountability Act (HIPPA): A federal law that limits the circumstances under which medical coverage may be excluded for pre-existing medical conditions and protects the dissemination of certain health-related information. XII. PAID TIME OFF (PTO) The CITY provides Paid Time Off(PTO), also referred to as annual leave benefits to regular full- time employees for rest, relaxation, and planned interruptions from the workplace including vacation, illness, caring for children, school activities, medical/dental appointments, personal business, or emergencies. The CITY encourages employees to take time off in order to receive the personal replenishment value intended. All use ofPTO is to be scheduled in advance and approved by a supervisor except in the case of illness or an emergency. A. Eligibility: All regular full-time employees are eligible to take and/or accrue paid time off based on their continuous length of service, measured from the date of hire. Continuous length of service is defined as service that is uninterrupted by termination of employment and subsequent rehire by the CITY or a break in service that has been bridged. B. Paid Time Off(PTO) Accrual: The amount ofPTO earned each year is based on the employee's continuous length of service. PTO hours are calculated as earned on a bi-weekly accrual schedule. All PTO hours are based on compensated work hours. Therefore, PTO accruals for regular part-time employees scheduled to work less than 40 hours per week shall be prorated accordingly. Employees will not accrue PTO hours while on unpaid status. Paid Time Off (PTO) Accrual Schedule for Full-Time Employees Years of Service Years 0 thru 5 After 5 years After 1 0 years Days Accrued 22 27 32 Hours Accrued 176 216 256 Maximum Annual Accrual Hours 600 600 600 FY PTO Cash-Out Option Effective Fiscal Year 2012-2013 through Fiscal Year 2019-2023: A PTO Cash-Out Option will not be made other than at the time of termination, except for the optional PTO cash-out plan described as follows: If an employee has used the required minimum of 80 accrued hours of PTO in the prior fiscal year, the employee is eligible to cash out up to a maximum of200 accrued hours ofPTO per fiscal year on approximately September 1 and/or March 1. An employee must maintain a minimum balance of 200 hours of accrued PTO after the cash out. PTO Accruals: Effective December 1, 2011, the PTO accrual cap of600 hours in the Personnel Rules will be enforced. Under no circumstances can an employee accrue more than the accrual PTO cap at any point in time. Once an employee reaches the accrual cap, no additional PTO will accrue until the employee uses his or her accrued PTO and reduces the balance to less than the accrual cap. Thereafter, PTO benefits will continue to accrue on a prospective basis only until the employee reaches the cap. No retroactive credit will be given for the time when accrued PTO was at the cap. PTO Timecard Reporting: PTO must be taken by exempt employees in increments of one hour or more in a workday. For example, when the employee leaves work one hour early to take care of personal business. 12 77 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SARATOGA AND UNION (2019-2023) PTO Upon Termination: Upon retirement from CITY service, an employee may choose to use all of his/her accrued paid time off as sick leave for service credit if allowed to do so by PERS. If an employee uses less than 100% ofhis/her paid time off toward PERS service credit, the CITY will pay the balance of the employee's accrued paid time off at the employee's regular rate of pay. Upon separation from CITY service other than retirement, the CITY will pay 100% of the employee's accrued paid time off at the employee's regular rate of pay. When an employee voluntarily resigns from employment, no paid time off may be used between the time a notice of resignation is given and the employee's last day of work unless authorized by the supervisor and Department Director. C. Holidays: The CITY observes the following paid holidays: (1) New Year's Day (2) Martin Luther King's Birthday (3) President's Day ( 4) Memorial Day ( 5) Independence Day ( 6) Labor Day (7) Columbus Day (8) Veteran's Day (9) Thanksgiving Day (10) Day after Thanksgiving (11) Christmas Eve (12) Christmas Day (13) New Year's Eve January 1 3rd Monday in January 3rd Monday in February Last Monday in May July4 1st Monday in September 2nd Monday in October November 11 4th Thursday in November Friday after Thanksgiving December24 December25 December 31 Calendars for four calendar years are attached. Except as modified by holiday calendars, this paragraph determines the scheduling of holidays. If a holiday falls on a Saturday, the preceding Friday will be observed. If a holiday falls on a Sunday, the following Monday will be observed. In those years in which one of the Christmas and/or New Year's holidays falls on a weekend, the Friday preceding the weekend and the Monday following the weekend shall be observed as holidays. If a holiday falls on an off-Friday, the holiday will be observed on the preceding Thursday. In general, holidays shall be compensated as a regular day's salary. If a holiday occurs when an employee is using annual leave, the holiday will not be charged against the employee's annual leave balance. To receive holiday pay, an employee must be on the payroll on the last regularly scheduled workday preceding the holiday and the first regularly scheduled work day following the holiday except an employee on Disability Leave shall only be entitled to receive holiday pay within the six-month period after the date of injury/illness. If the employee is using accrued PTO on the day before the holiday and the day after the holiday, payment for the holiday shall be at full pay. If the employee is receiving Short Term Disability payments on the day before the holiday and/or the day after the holiday, payment for the holiday shall be at 75% of the employee's regular rate of pay. D. Jury Duty Leave: Employees who are called for jury duty continue to receive full pay and benefits for that period of absence. A juror who is a City employee and who receives regular compensation and benefits while performing jury service may not be paid the daily jury duty fee. (CCP section 215). The employee is required to waive the daily jury duty fee by completing a court form (or by telling the court staff that the employee is paid full compensation and benefits by the City). Any checks that an employee receives from the County or court for daily jury duty fees must be returned by the employee to the County or court which issued the check for jury duty fees. If the County or court issues a separate 13 78 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SARATOGA AND UNION (20 19-2023) check for mileage, the employee can retain and cash the check reimbursing the employee for mileage. The employee should request that the court issue a check for mileage reimbursement only. The time spent on jury duty is not work time for purposes of calculating overtime compensation. E. Military Leave: An employee in a reserve component of the armed forces of the United States is entitled to military leave according to applicable law. An employee who has been employed by a public entity, including prior military service, for at least one year immediately prior to the day on which the absence begins is entitled to receive full salary and benefits during the first 30 calendar days of such temporary military leave, in addition to whatever pay is received from the federal government for training. Pay for such purposes shall not exceed 30 days in any one fiscal year. F. Industrial Injury Leave: This is leave for an on-the-job injury or illness. Beginning on the date of injury/illness, the CITY shall pay an employee's full salary for up to the first three consecutive workdays of any absence due to any one injury or illness. If such leave exceeds three consecutive workdays, the employee shall be entitled to Workers Compensation benefits as prescribed by law. Monies paid through a third party administrator are not reported to PERS as salary earned. In addition, the employee may use annual leave to supplement Workers' Compensation benefits up to his/her full salary to the extent allowed by applicable law. An employee on Industrial Injury Leave will continue to receive full CITY paid insurance benefits (medical, dental, life, and long term disability) for up to 3 months from the date of injury/illness. If an employee suffers an injury or illness on the job, whether or not medical treatment is necessary, he or she must advise the supervisor at once and fill out an employee claim form. An employee must also indicate on their time card any time off taken due to an on-the-job injury or illness, or for related follow-up medical appointments. Upon return to work from an Industrial Injury Leave, an employee shall provide a written statement from a doctor to his/her immediate supervisor stating that a specified number of appointments are necessary for Workers' Compensation approved treatment. This shall occur before the scheduling of treatment begins. Employees shall be expected to the extent possible to schedule appointments for follow-up medical treatments to minimize the inconvenience to fellow employees and the impact on the employee's ability to perform his/her job. G. Leave Without Pay: It is not the policy of the CITY to grant leaves of absence under most circumstances. In cases of hardship or for other good and sufficient reasons, the City Manager may grant leaves of absence upon written request by an employee, for a period up to 90 days. The employee will not accrue any annual leave while on leave without pay and the leave period will be considered as discontinuous service. During the time an employee is on leave without pay, the CITY may discontinue paying for insurance benefits on behalf of the employee, although the employee shall have the option to continue benefits at his/her own cost. XIII. RETIREMENT (PERS) The CITY is a contracting agency of the California Public Employees Retirement System (PERS). Regular employees become members immediately upon employment and become vested after five years. The CITY pays the CITY's contribution as a contracting employer. Effective November 14,2011, each regular UNION employee will contribute 7% of the employee's compensation on a pre-tax basis towards the CalPERS 2%@55 retirement plan permanently. 14 79 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SARATOGA AND UNION (2019-2023) New Hire CalPERS Retirement Plan for Employees Hired July 1, 2011 through December 31, 2012: Any employee hired on or after July 1, 2011, (and effective as soon as the City can complete the legally-required process for this item) and before December 31, 2012, will receive the following 2nd tier retirement option: a. A retirement plan of 2% at 60 with a retirement benefit based on a calculation using a three year average compensation. b. Each employee will pay on a pre-tax basis 100% of the employee's contribution as determined by PERS toward the CalPERS 2%@60 retirement plan. New Hire CalPERS Retirement Plan for Employee Hired January 1, 2013 and After: Any employee hired on or after January 1, 2013, who does not meet the exceptions as specified in state law to be a "classic" member ofPERS, will receive the following 3rd tier retirement option: a. A retirement plan of2% at 62 as required by state law (PEPRA). b. Each employee will pay on a pre-tax basis 100% ofthe employee's contribution as determined by PERS toward the CalPERS 2%@62 retirement plan. An employee hired after January 1, 2013 who meets an exception under state law to be a "classic" member of PERS will receive the second tier plan of 2% at 60 noted above. The CITY through its contract with PERS provides for retirement benefits including: (1) for employees hired before July 1, 2011, 2% at 55 (effective September 1, 1999), one year final compensation, service credit at retirement for unused sick leave, survivor continuance, and 1959 survivor benefits (Level3) if death occurs prior to retirement, or (2) for employees hired on or after July 1, 2011, 2% at 60, three year average compensation, or (3) for employees hired on or after January 1, 2013, 2% at 62 as required by state law (PEPRA) (unless employee is a "classic" member). In addition, employees may be eligible to purchase additional years of service credit under specific circumstances listed under the CITY's PERS contract. XIV. UNIFORM AND CLOTHING ALLOWANCES Each regular full-time employee shall receive an allowance of $500 per fiscal year for the purchase of pants and/or shorts, safety boots, and laundering of uniform shirts and other items provided by the City. Three shirts per employee per year are purchased directly by the City in the colors designated by the City. The City also purchases hard hats, safety jackets, rain gear, rain boots, and gloves as needed. This $500 allowance shall be paid on the second pay date in July. The allowance shall be prorated from the date of hire for a newly hired employee. The allowance is reported toPERS as salary earned for Classic employees (not reported as special pay for PEPRA employees). XV. TUITIONREIMBURSEMENT All regular employees of the CITY who have been t(mployed continually for at least one year prior to the commencement of an approved course are eligible for the CITY's tuition reimbursement program, dependent on the City's availability of training funding at the time. A. Coursework for Degree or Certificate: If the course(s) taken is/are job related or in fulfillment of the requirements for a degree or certificate, one-hundred percent ( 1 00%) reimbursement will be afforded for tuition, fees and books by the CITY up to a maximum of two thousand five hundred dollars ($2,500) per employee per fiscal year. The Department Head and City Manager will determine job-relatedness. 15 80 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SARATOGA AND UNION (2019-2023) B. Coursework for Professional Development: If the course(s) is/are not specifically related to the employee's current position, and does not fulfill the requirements for a degree or certificate, but does provide for professional development related to the worker's position of employment or a higher position in the CITY, reimbursement will be afforded for tuition, fees and books by the CITY at one-hundred percent (100%), up to a maximum five hundred dollars ($500) per employee per fiscal year. Reimbursement will be afforded after successful completion of the course(s) requirements. Successful completion is defined as a "C" grade or a "Pass" on a pass-fail system. XVI. ARBITRATION AND GRIEVANCE PROCEDURE If the UNION believes that the CITY has violated this Agreement, such matters arising during the term of this MOU ("grievances") will be resolved through this Grievance Procedure, which is the sole and exclusive method of doing so. The parties agree by this provision that matters regarding discipline remain within the sole discretion of the City as set forth in its Discipline Policy and that only the issue of whether the City has followed its Discipline Policy is subject to arbitration and the grievance procedure. A. Step (1): The UNION Representative will attempt to resolve the matter with the supervisor. If the matter is not resolved the UNION will file a written grievance with the CITY's Human Resources representative within fifteen days after the employee or UNION is aware or reasonably should be aware of the act or omission that caused the grievance. The grievance shall specify the date(s) of the alleged violation(s) and the provisions of the Agreement applicable to the dispute. A grievance not filed in writing within the above time shall be invalid or waived, excepting any complaint relative to wages shall not be deemed invalid or waived until thirty (30) days after origin of cause of the complaint and in no event shall an employee be deprived of actual wages due. B. Step (2): The CITY shall answer the grievance in writing within ten (1 0) working days after the written grievance is filed. The CITY Human Resources representative and the UNION will discuss the grievance during this period. If the grievance is not settled, the UNION may advance it to Step 3 by giving written notice to the City Manager within five (5) working days after the CITY Human Resources representative answers the grievance in writing. If the CITY does not timely file an answer, UNION may advance the grievance to Step 3 within five (5) calendar days by giving written notice to the City Manager and the HR Manager, and the UNION may deliver written notice of arbitration immediately. The CITY shall notify the UNION of the name, address, telephone number and fax number of the City Manager no later than five (5) working days after this MOU has been ratified and no later than five (5) working days from the date the CITY assigns the City Manager representative duties to a different individual. C. Step (3): During the five (5) working days after a grievance advances to Step 3, the City Manager and the UNION will attempt to settle it. If it is not settled during that five (5) day period, the UNION may advance it to Arbitration by delivering written notice to the City Manager within ten (10) working days after the end of the five (5) working day period. In the absence of such written notice, the grievance will be settled based on the CITY's answer. The time limits in this Grievance Procedure may be extended by mutual written agreement. Each party will provide the other with a current address of that party's representatives identified above. 16 81 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SARATOGA AND UNION (2019-2023) D. Arbitration 1. Upon filing by the UNION of an appeal to arbitration as provided in Step 3 ofthe Grievance Procedure, the parties will promptly attempt to agree on an independent arbitrator to hear and resolve the grievance. 2. If the parties are unable to agree on an arbitrator within five (5) working days after the UNION delivers the notice of appeal to arbitration, either party may apply to the State Mediation and Conciliation Service (SMCS) for a panel of seven arbitrators. The party applying for the list will request that the list be sent by the SMCS to both parties. 3. Upon receipt of the list, the parties will promptly select an arbitrator to hear and decide the grievance by alternately striking names from the list (coin toss for first strike) until only one remains, and s/he will be the arbitrator for the case. 4. The arbitrator will decide the case by a written opinion following the hearing. The arbitrator's decision will be final and binding provided that the arbitrator's decision is based on the provisions of this Agreement as written and does not add to, subtract from or ignore any provision of this Agreement. Either party may have a transcript of the hearing made, but in that event, that party will pay for the transcript. 5. The fees and expenses of the arbitrator and the court reporter will be paid one-halfby each party. Each party's own expenses will be paid by that party. XVII. ALCOHOL AND DRUG ABUSE POLICY Purpose: It is the intention of this policy to eliminate substance abuse and its effects in the workplace. While the City of Saratoga has no intention of intruding into the private lives of its employees, involvement with drugs and alcohol can take its toll on job performance and employee safety. Employees must be in a condition to perform their duties safely and efficiently, in the interest of their fellow workers and the public, as well as themselves. The presence ~f drugs and alcohol on the job, and the influence of these substances on employees during working hours, are inconsistent with this objective. Employees who think they may have an alcohol or drug usage problem are urged to voluntarily seek confidential assistance from the Employee Assistance Program Counselor. While the CITY will be supportive of those who seek help voluntarily, the CITY will be equally firm in identifying and disciplining those whose continued substance abuse, even if enrolled in counseling or rehabilitation programs, results in performance problems, danger to the health and safety of others and themselves and/or violations of federal, state or CITY laws/policy. Supervisors will be trained to recognize abusers and become involved in this control process. Alcohol or drug abuse wmnot be tolerated and disciplinary action, up to and including termination, will be used as necessary to achieve this goal. This policy provides guidelines for the detection and deterrence of alcohol and drug abuse. It also outlines the responsibilities of City managers and employees. To that end, the CITY will act to eliminate any substance abuse (alcohol, illegal drugs, prescription drugs or any other substance which could impair an employee's ability to safely and effectively perform the functions of the job) which increases the potential for accidents, absenteeism, substandard performance, poor employee morale or damage to the Agency's reputation. All persons covered by this policy should be aware that violations of the policy may result in discipline, up to and including termination, or in not being hired. 17 82 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SARA TOGA AND UNION (20 19-2023) · In recognition of the public service responsibilities entrusted to the employees of the CITY and that drug and alcohol usage can hinder a person's ability to perform duties safely and effectively, the following policy against drug and alcohol abuse is hereby adopted by the CITY. Policy: It is CITY policy that employees shall not be impaired by or have in their biological system, or be in possession, of alcohol or drugs while on CITY property, at work locations, or while on duty or subject to being called to duty, and that employees shall not sell or provide drugs or alcohol to any other employee or person while on duty or subject to being called to duty. While use of validly prescribed medications and drugs does not violate this policy per se, failure by an employee to notify his/her supervisor, before beginning work, when taking medications or drugs which could foreseeably interfere with the safe and effective performance of duties, or the operation of CITY equipment, can result in discipline, up to and including termination. In the event there is a question regarding an employee's ability to safely and effectively perform assigned duties while using such medications or drugs, clearance from a qualified physician may be required. The CITY reserves the right to search, without employee consent, all areas and property in which the CITY maintains control or joint control with the employee. Otherwise, the CITY may notify appropriate law enforcement agencies that an employee may have illegal drugs in his or her possession or in an area not jointly or fully controlled by the CITY. Refusal to immediately submit to an alcohol and/or drug analysis when requested by CITY management or law enforcement personnel, or refusal to submit to a search of personal properties if requested by law enforcement personnel, may constitute insubordination and be grounds for discipline, up to and including termination. 1 An employee reasonably believed to be under the influence of alcohol or drugs shall be prevented from engaging in further work and shall be detained for a reasonable time until he or she can be safely transported from the work site. The CITY is committed to providing reasonable accommodation to those employees whose drug or alcohol problem classifies them as disabled under federal and/or state law. The CITY has established an Employee Assistance Program (EAP) to assist those employees who voluntarily seek help for alcohol or drug problems. The CITY will provide separate written notice of the availability of this program to all employees. Employees should contact their supervisors or the EAP Counselor for additional information. Application: This policy applies to all employees of and to all applicants for positions with the CITY. This policy applies to alcohol and drugs, including all substances, drugs or medications, whether legal or illegal, which couldimpair an employee's ability to effectively and safely perform the functions of the job. Employee Responsibilities -An employee must: • Not report to work or be subject to duty while his or her ability to perform job duties is impaired due to on or off duty alcohol or drug use; • Not possess or use alcohol or impairing drugs, including illegal drugs and prescription drugs without a prescription, during working hours or while subject to duty, on breaks, during meal periods or at any time while on CITY property; • Not directly or through a third party sell or provide drugs or alcohol to any person, including any employee, while either or both employees are on duty or subject to being called to duty; 18 83 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SARATOGA AND UNION (2019-2023) • Submit immediately to an alcohol or drug test when requested by a CITY representative; • Notify his or her supervisor, before beginning work, when taking any medications or drugs, prescription or non-prescription, which may interfere with the safe and effective performance of duties or operation of CITY equipment; and • Provide within 24 hours of request, bona fide verification of a current valid prescription for any potentially impairing drug or medication identified when a drug screen/test is positive. The prescription must be in the employee's name. Management Responsibilities - • Managers and supervisors are responsible for reasonable enforcement of this policy. • Managers and supervisors may request that an employee submit to a drug and/or alcohol test when a manager or supervisor has a reasonable suspicion that an employee is intoxicated or under the influence of drugs or alcohol while on the job or subject to being called. • "Reasonable suspicion" is a belief based on objective facts sufficient to lead a reasonably prudent supervisor to suspect that an employee is under the influence of drugs or alcohol so that the employee's ability to perform the functions of the job is impaired or so the employee's ability to perform his or her job safely is reduced. For example, any of the following, alone or in combination, may constitute reasonable suspicion depending upon the circumstances in which the behavior is observed and/or reported: • Slurred speech; • Alcohol odor on breath; • Unsteady walking and movement; • An accident involving CITY property, where it appears the employee's conduct is at fault; • Physical altercation; • Verbal altercation; • Unusual behavior; • Possession of alcohol or drugs; • Information obtained from a reliable person with personal knowledge. Any manager or supervisor requesting an employee to submit to a drug and/or alcohol test should document in writing the facts constituting reasonable suspicion that the employee in question is intoxicated or under the influence. Any manager or supervisor encountering an employee who refuses an order to submit to a drug and/or alcohol analysis upon request shall remind the employee of the requirements and disciplinary consequences of this Policy. Where there is reasonable suspicion that the employee is then under the influence of alcohol or drugs, the manager or supervisor should arrange for the employee to be safely transported home. Managers and supervisors shall not physically search the person of employees, nor shall they search the personal possessions of employees without the freely given written consent of, and in the presence of, the employee. Managers and supervisors shall notify their Department head or designee when they have reasonable suspicion to believe that an employee may have illegal drugs in his or her possession or in an area not jointly or fully controlled by the CITY. If the Department head or 19 84 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SARATOGA AND UNION (2019-2023) designee concurs that there is a reasonable suspicion of illegal drug possession, the Department head shall notify the appropriate law enforcement agency. Physical Examination and Procedure: The drug and/or alcohol test may test for any substance which could impair an employee's ability to perform effectively and safely the functions of his or her job, including, but not limited to, prescription medication, alcohol, heroin, cocaine, morphine and its derivatives, P.C.P., methadone, barbiturates, amphetamines, marijuana and other cannabinoids. Testing shall be performed at a local medical facility selected by the CITY. The procedure used shall require an unbroken chain of custody from sample ~ollection to return of the written report. A split sample (a test sample which is divided into portions for use in an independent testing of positive samples) shall be preserved to provide an independent test. If the initial test has positive results, the CITY shall conduct a confirmation test using a court admissible testing technique. If the confirmation .test has positive results, the employee may re-test the sample at a laboratory of the employee's choice and at the employee's own expense. Results of Drug and/or Alcohol Analysis Pre-Employment Physical A positive result from a drug and/or alcohol analysis may result in the applicant not being hired where the applicant's use of drugs and/or alcohol could affect requisite job standards, duties or responsibilities. If a drug screen is positive at the pre-employment physical, the applicant must provide, within 24 hours of the request, bona fide verification of a valid current prescription for the drug identified in the drug screen. If the prescription is not in the applicant's name or the applicant does not provide acceptable verification, or if the drug is one that is likely to impair the applicant's ability to perform the job duties, the applicant may not be hired. During Employment Physical or Alcohol/Drug Tests A positive result from a drug and/or alcohol analysis may result in disciplinary action, up to and including, termination. If the drug screen is positive, the employee must provide, within 24 hours of the request, bona fide verification of a valid current prescription for the drug identified in the drug screen. The prescription must be in the employee's name. If the employee does not provide acceptable verification of a valid prescription, or if the prescription is not in the employee's name, or if the employee has not previously notified his or her supervisor of the same, the employee will be subject to disciplinary action, up to and including termination. If an alcohol drug test is positive for alcohol or drugs, the CITY shall conduct an investigation to gather all facts. The decision to discipline, up to and including termination, will be carried out in conformance with the CITY's discipline procedures, modified as follows: 1. In the event a regular, for-cause employee requests an evidentiary appeal to the City Manager from a final notice of discipline (Section 6 of the Discipline Policy) for violating the City's Drug and Alcohol Abuse Policy, the evidentiary appeal will be conducted by a neutral, third party arbitrator who, after conducting the evidentiary hearing and hearing all of the evidence (pursuant to the provisions of Section 6 of the Discipline Policy), will make a nonbinding recommendation to the City Manager with respect to discipline. The nonbinding recommendation will include: (a) the arbitrator's nonbinding recommendation regarding discipline; and (b) the arbitrator's nonbinding- 20 85 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SARATOGA AND UNION (2019-2023) recommended-written findings of fact in support of his or her recommendation for discipline. The nonbinding-recommended-written findings of fact will include the factual basis for the recommendation for discipline, including the testimony of the witnesses relied upon, the basis of any credibility determinations of these and other witnesses, the documents and other evidence relied upon, and nonbinding assessments on how the testimony, documents, and other evidence support the nonbinding recommendation of the arbitrator. 2. The City and the Union will agree on the neutral, third party arbitrator who will conduct the evidentiary hearing and make the above nonbinding recommendations, prior to the onset of the evidentiary hearing. In the event an agreement on a third party arbitrator cannot be reached, then either party shall promptly obtain from the California State Conciliation Services a list of seven impartial arbitrators from which the City and the Union shall select the neutral, third party arbitrator by alternatively striking names from the list. The first party to strike from the list shall be determined by coin toss. 3. The neutral, third party arbitrator will submit his or her nonbinding recommendation for discipline and nonbinding-recommended-written findings of fact to the City Manager with a copy to the employee and the Union within 30 days after the evidentiary hearing has been completed and written briefs, if any, have been submitted. The City Manager will have 30 days thereafter in which to review the nonbinding recommendations and findings, to request clarification or additional testimony or evidence (at the City Manager's discretion) on any issue, and to render a final statement of written findings and decision. The City Manager's decision is final. 4. Proof of service of the City Manager's final statement of written findings and decision and the statute of limitations on that final decision is in accordance with Subdivisions 6 and 7 of Section 6 of the Discipline Policy. Confidentiality: Laboratory reports and test results shall not appear in an employee's general personnel file. Information of this nature will be contained in a separate confidential medical folder that will be securely kept under the control of the Human Resources Manager. The reports or test results may be disclosed to CITY management on a strictly need-to-know basis and to the tested employee upon request. Disclosures, without patient consent, may also occur when: (1) the information is compelled by law or by judicial or administrative process; (2) the information has been placed at issue in a formal dispute between the employer and employee; (3) the information is to be used in administering an employee benefit plan; or (4) the information is needed by medical personnel for the diagnosis or treatment of the patient who is unable to authorize disclosure. XVIII. DISCIPLINE POLICY Unless otherwise specified by a memorandum of understanding, the following constitutes the CITY's policy regarding disciplinary actions: A. Policy Coverage: The following categories of persons can be terminated at-will and have no rights to any of the pre-or post-disciplinary processes or procedures in this Policy: (1) temporary employees, (2) provisional or seasonal employees, (3) probationary employees, (4) any person who serves pursuant to a contract, and (5) any person who is designated "at- will" in any CITY policy, document, acknowledgement, resolution or ordinance. Notwithstanding any provision in this policy, any regular employee who is exempt from the overtime provisions of the Fair Labor Standards Act (FLSA) is not subject to any 21 86 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SARATOGA AND UNION (2019-2023) disciplinary penalty which is inconsistent with his or her FLSA overtime-exempt status. B. Causes for Discipline: Regular employees may be counseled, admonished, reprimanded, suspended, demoted, discharged or incur a reduction in pay for disciplinary causes including but not limited to: 1. Violation ofthe CITY's Employment Standards, Standards of Conduct or any department rule, CITY policy or CITY regulation, ordinance or resolution; 2. Absence without authorized leave; 3. Excessive absenteeism and/or tardiness as defined by the employee's department director, these Policies, or MOU; 4. Use of disability leave in a manner not authorized or provided for pursuant to the disability leave policy or other policies of the CITY; 5. Purposefully and knowingly making any false statement, omission or misrepresentation of a material fact; 6. Providing wrong or misleading information or other fraud in securing appointment, promotion or maintaining employment; 7. Unsatisfactory job performance; 8. Inefficiency; 9. Malfeasance or misconduct, which shall be deemed to include, but shall not be limited to the following acts or omissions: a. Conviction of a felony. "Conviction" shall be construed to be a determination of guilt of the accused by a court, including a plea of guilty or nolo contender (no contest), regardless of sentence, grant of probation, or otherwise. b. Damaging CITY property, equipment, or vehicles, or wasting CITY supplies through negligence or misconduct. 10. Insubordination; 11. Dishonesty; 12. Theft; 13. Disobedience; 14. Violation of the CITY's or a department's confidentiality policies, or disclosure of confidential CITY information to any unauthorized person or entity; 15. Misuse of any CITY property, including, but not limited to: physical property, tools, equipment, CITY communication systems, or Intellectual Property; 16. Mishandling of public funds; 17. Falsifying any CITY record; 18. Discourteous treatment of the public or other employees; 19. Failure to cooperate with employee's supervisors or fellow employees; 20. Violation of the CITY's Drug-Free Workplace Policy; 21. Violation ofthe CITY's Use of CITY Property and Equipment Policy; 22. Violation of the CITY's Policy Against Harassment, Discrimination and Retaliation; 23. Violation of the CITY's Workplace Security Policy; 24. Unapproved outside employment or activity that violates the CITY's Outside 22 87 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SARA TOGA AND UNION (20 19-2023) Employment policy, or other enterprise that constitutes a conflict of interest with service to the CITY; 25. Any conduct that impairs disrupts or causes discredit to the CITY, the employee's CITY employment, to the public service,.or other employee's employment; 26. Failure to comply with OSHA Safety Standards and CITY safety policies; 27. Failure to report to his or her supervisor any contact with criminal authorities (such as police) which may affect employment with the CITY; 28. Altering, falsifying, and tampering with time records, or recording time on another employee's time record; or 29. Working overtime without prior authorization. C. Administrative Disciplinary Leave: A department director may place an employee on an administrative disciplinary leave with pay pending a potential disciplinary action. Administrative disciplinary leave with pay is authorized: (1) when the department director believes that the employee's continued presence at the work site could have detrimental consequences for CITY operations; or (2) pending investigation into charges of misconduct. If the charges against the employee are substantiated by the investigation, appropriate disciplinary action may be taken in accordance with these procedures. D. Types ofDiscipline Counseling Memo: A counseling memo shall be retained in the employee's personnel file and may not be appealed under this policy. Oral Admonishment or Reprimand: An oral admonishment or reprimand shall be memorialized in writing, become part of the employee's personnel file, and may not be appealed under this policy. Written Admonishment or Reprimand: A department director may reprimand an employee by furnishing him/her with a written statement of the specific reasons for reprimand. A copy of the reprimand will be retained in the employee's personnel file and may not be appealed. The employee has the right to have a written rebuttal attached to the reprimand in the employee's personnel file. Suspension: A department director may suspend an employee from his or her position for cause. Documents related to a suspension shall become part of the employee's personnel file. An employee subject to suspension will receive prior written notice and appeal as provided herein. FLSA-exempt employees are not subject to suspension except in work day or work week increments or for violations of major safety rules. Demotion: A department director may demote an employee from his or her position for cause. Documents related to a demotion shall become part of the employee's personnel file. An employee subject to demotion shall be entitled to the prior written notice and appeal as provided herein. Reduction in Pay: A department director may reduce an employee's pay for cause. A reduction in pay for disciplinary purposes may take one of two forms: (1) a decrease in salary to a lower step within the salary range; or (2) a decrease in salary paid to an employee for a fixed period of time. Documents related to a reduction in pay shall become part of the employee's personnel file. An employee subject to a reduction in pay shall be entitled to prior written notice and appeal as provided herein. FLSA-exempt employees are not subject to reduction in pay. 23 88 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SARATOGA AND UNION (2019-2023) Discharge: A department director may discharge an employee from his or her position for cause. Documents related to discharge shall become a part of an employee's personnel file. A discharged employee is entitled to prior written notice and appeal based upon the terms described herein. E. Skelly Process-Pre-Disciplinary Procedure for Suspension, Demotion, Reduction in Pay, or Discharge: Only regular, for-cause employees have the right to the conference and appeal processes outlined in this Section. Notice oflntent to Discipline: The employee will be provided a written notice of intent to discipline, copied to the City Manager that contains the following: 1. The level of discipline intended to be imposed; 2. The specific charges upon which the intended discipline is based; 3. A summary of the misconduct upon which the charges are based; 4. A copy of all written materials, reports, or documents upon which the intended discipline is based; 5. Notice of the employee's right to respond to the department director regarding the charges within 5 calendar days from the date of the Notice, either by requesting an informal conference, or by providing a written response, or both; 6. Notice of the employee's right to have a representative at the informal conference, should he or she choose to respond orally; and 7. Notice that the failure to respond at the time specified shall constitute a waiver of the right to respond prior to the imposition of discipline. Employee's Response and the Skelly Conference 1. If the employee requests an informal conference to respond orally to the charge( s ), the conference must be scheduled at least 7 calendar days after the date of the Notice. The conference will be an informal meeting with the department director, at which the employee has an opportunity to rebut the charges against him or her and present any mitigating circumstances. The department director will consider the employee's presentation before recommending any final disciplinary action. 2. The employee's failure to make an oral response at the arranged conference time, or the employee's failure to cause his or her written response to be delivered bythe date and time specified in the notice, constitutes a waiver of the employee's right to respond prior to the imposition of the discipline. In that case, the proposed disciplinary action will be imposed on the date specified. Final Notice of Discipline: After considering the employee's response, or after the expiration of the employee's time to respond to the Notice ofintent, the department director shall: (1) dismiss the notice of intent and take no disciplinary action against the employee; or (2) modify the intended disciplinary action, or (3) impose the intended disciplinary action. In any event, the department director shall prepare and provide the employee with a notice, copied to the City Manager that contains the following: 1. The level of discipline, if any, to be imposed and the effective date of the discipline; 2. The specific charges upon which the discipline is based; 3. A summary of the misconduct upon which the charges are based; 4. A copy of all written materials, reports, or documents upon which the discipline is based; and 24 89 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SARATOGA AND UNION (20 19-2023) 5. A statement of the nature of the employee's right to appeal. F. Evidentiary Appeal to the City Manager Request for Appeal Hearing: A regular, for-cause employee may appeal from a final notice of discipline in the form of suspension, demotion, reduction in pay, or termination by delivering a written answer to the charges and a request for appeal to the City Manager or designee. The written answer and request for appeal must be received no later than 10 calendar days from the date of the department director's decision. Delegation: The City Manager or designee reserves the right to delegate his or her authority to decide the appeal to an outside hearing officer to be chosen by the City Manager or designee. Date and Time of the Appeal Hearing: The City Manager will set a date for an appeal hearing within a reasonable time after receipt of a timely written answer and request for appeal. An employee who, having filed a timely written answer and request for appeal, has been notified of the time and place of the appeal hearing, and who fails to appear personally at the hearing, may be deemed to have abandoned his or her appeal. In such a case, the City Manager may dismiss the appeal. Identification oflssues, Witnesses and Evidence: No later than 10 days prior to the appeal hearing, each party will provide each other and the City Manager a statement of the issues to be decided, a list of all witnesses to be called (except rebuttal witnesses), a brief summary of the subject matter of the testimony of each witness, and a copy of all evidence (except rebuttal evidence) to be submitted at the hearing. The CITY will use numbers to identify its evidence; the employee shall use alphabet letters. Neither party will be permitted to call any witness during the hearing that has not been identified pursuant to this section, nor use any exhibit not provided pursuant to this section, unless that party can show that they could not have reasonably anticipated the need for the witness or exhibit. The City Manager will state at the beginning of the hearing his or her decision as to the precise issue(s) to be decided. Conduct of the Appeal Hearing Subpoenas: The City Council has authority, and may delegate the authority to the City Clerk, to issue subpoenas in the name of the CITY prior to the commencement of the hearing. Each party is responsible for serving his/her/its own subpoenas. CITY employees who are subpoenaed to testify during working hours will be released with pay to appear at the hearing. CITY employees who are subpoenaed to testify during non-working hours will be compensated for the time they testify unless the CITY agrees to a different arrangement. Continuances: The City Manager may continue a scheduled hearing only upon good cause shown. Record ofthe Proceedings: All disciplinary hearings may, at the discretion of the parties, be either recorded by a court reporter or tape recorded. The City Manager's Authority: During the Hearing the City Manager has the authority to control the conduct of the hearing and to affirm, modify, or revoke the discipline. Conduct of the Hearing 1. The hearing need not be conducted in accordance with technical rules relating to evidence and witnesses, but hearings shall be conducted in a manner the City Manager decides is the most conducive to determining the truth. 2. Any relevant evidence may be admitted if it is the type of evidence upon which responsible persons are accustomed to relying upon in the conduct of serious affairs, regardless of the existence of any common law or statutory rules which might make 25 90 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SARATOGA AND UNION (20 19-2023) improper the admission of such evidence over objection in civil actions. 3. Hearsay evidence may be used for supplementing or explaining any direct evidence, but over timely objection shall not be sufficient to support a finding, unless such evidence would be admissible over objection in civil actions. An objection is timely if made before submission of the case. 4. All privileges recognized in civil proceedings apply. 5. Irrelevant and unduly repetitious evidence may be excluded. 6. The City Manager shall determine relevancy, weight and credibility of testimony and evidence. 7. During the examination of a witness, all other witnesses, except the parties, shall be excluded from the hearing upon the request of either party. 8. All witnesses shall be sworn in for the record prior to testifying at the hearing. The City Manager or the court reporter shall request each witness to raise his or her right hand and respond to the following: "Do you swear that the testimony that you are about to give at this hearing is the truth, the whole truth, and nothing but the truth?" Burden of Proof at the Hearing: The CITY has the burden of proof by a preponderance of the evidence. Right to Due Process: The employee shall have the following due process rights during the hearing: 1. The right to be represented by legal counsel or another chosen representative, at his or her own expense; 2. The right to call and examine witnesses on his or her behalf; 3. The right to introduce evidence; 4. The right to cross-examine opposing witnesses on any matter relevant to the issues; 5. The right to impeach any witness regardless of which party first called him or her to testify; and 6. The right to rebut evidence against him or her. Hearing to be Closed to the Public: The hearing will be closed to the public unless the employee requests that it be open. Presentation of the Case: The parties will address their remarks, evidence, and objections to the City Manager. All parties and their counsel or representatives shall not disparage the intelligence, morals, or ethics of their adversaries or of the City Manager. The City Manager may terminate argument at any time and issue a ruling regarding an objection or any other matter. The City Manager may alter the order of witnesses, limit redundant or irrelevant testimony, or directly question the witness. The hearing shall proceed in the following order unless the City Manager directs otherwise: 1. The CITY shall be permitted to make an opening statement. 2. The employee shall be permitted to make an opening statement. 3. The CITY shall produce its evidence. 4. The employee shall produce his or her evidence. 5. The CITY, followed by the employee, may offer rebuttal evidence. 6. Closing arguments of no more than 20 minutes shall be permitted at the discretion of 26 91 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SARA TOGA AND UNION (20 19-2023) the City Manager. The,CITY shall have the right to argue first, the employee may argue second, and the CITY may reserve a portion of its argument time for rebuttal. Written Briefs by the Parties: The City Manager or the parties may request the submission of written briefs. The City Manager will determine whether to allow written briefs, the deadline for submitting briefs, and the page limit for briefs. Written Findings and Decision: The City Manager shall render a statement of written findings and decision within 30 days after the hearing has been completed and the briefs, if any, have been submitted. The City Manager's decision is fmal. Proof of Service of the Written Findings and Decision: The City Manager shall send his or her final statement of written findings and decision, along with a proof of service of mailing, to each of the parties and to each of the parties' representatives. A copy shall also be distributed to the Human Resources Manager. Statute ofLimitations: The City Manager's written findings and decision is final. There is no process for reconsideration. Pursuant to Code of Civil Procedure Section 1094.6, the parties have 90 days from the date of the proof of service of mailing of the written fmdings and decision to appeal the decision to the Superior Court in and for the County of Santa Clara. XIX. SCOPE OF AGREEMENT This MOU represents the entire and complete understanding reached between the representatives of the CITY and the representatives of the UNION for the period designated and applies to all positions represented by the UNION. XX. RATIFICATION This MOU is subject to ratification by a majority vote of the members of the UNION. City Council adoption of Resolution No. 19-036 and ratification by the UNION will put the terms of this MOU into effect. (Union ratified May 14,2019, and City Council ratified June 19, 2019). Representative of the City of Saratoga: Representatives ofthe Northern California Carpenters Regional Council, Carpenters Forty Six Counties Conference ----:;;>'~~~-~~-1...L~=-------G:d~ Affiliated Local ~lions Date: 7 -/g., J 9 Mift.~ Date: ·;jrg /9 l 1 27 92 CITY OF SARATOGA Position Salary Range Table as of July 1, 2019 POSITION TITLE (FLSA Classification) 1 2 3 4 5 6 7 Park Maintenance Worker I 2,290.40 2,404.80 2,524.80 2,651.20 2,784.00 2,923.20 3,069.60 Street Maintenance Worker I 59,550.40 62,524.80 65,644.80 68,931.20 72,384.00 76,003.20 79,809.60 (FLSA Non-Exempt)28.63 30.06 31.56 33.14 34.80 36.54 38.37 Park Maintenance Worker II 2,480.80 2,604.80 2,735.20 2,872.00 3,016.00 3,167.20 3,325.60 Street Maintenance Worker II 64,500.80 67,724.80 71,115.20 74,672.00 78,416.00 82,347.20 86,465.60 (FLSA Non-Exempt)31.01 32.56 34.19 35.90 37.70 39.59 41.57 Park Maintenance Worker III 2,763.20 2,901.60 3,046.40 3,198.40 3,358.40 3,526.40 3,702.40 Street Maintenance Worker III 71,843.20 75,441.60 79,206.40 83,158.40 87,318.40 91,686.40 96,262.40 (FLSA Non-Exempt)34.54 36.27 38.08 39.98 41.98 44.08 46.28 Park Maintenance - Lead 3,087.20 3,241.60 3,404.00 3,574.40 3,752.80 3,940.80 4,137.60 Street Maintenance - Lead 80,267.20 84,281.60 88,504.00 92,934.40 97,572.80 102,460.80 107,577.60 (FLSA Non-Exempt)38.59 40.52 42.55 44.68 46.91 49.26 51.72 STEP RANGES CARPENTERS 46 NORTHERN CALIFORNIA COUNTIES CONFERENCE BOARD FY 2019/20 Z:\Admin Services\Payroll Files\SALARY RANGES MASTER\FY 2019-20\FY 2019-20 Salary Schedule at 7.1.2019 - copy Revision Date: 7/19/2019 93 X:\Negotiations\2019 General\Holiday Sch 20206/26/201911:30 AM ACTUAL DAY ACTUAL DATE DAY OBSERVED DATE OBSERVED Wednesday January 1, 2020 Wednesday January 1, 2020 Monday January 20, 2020 Monday January 20, 2020 Monday February 17, 2020 Monday February 17, 2020 Monday May 25, 2020 Monday May 25, 2020 Saturday July 4, 2020 Friday July 3, 2020 Monday September 7, 2020 Monday September 7, 2020 Monday October 12, 2020 Monday October 12, 2020 Wednesday November 11, 2020 Wednesday November 11, 2020 Thursday November 26, 2020 Thursday November 26, 2020 Friday (OFF FRI)November 27, 2020 Monday December 28, 2020 Thursday December 24, 2020 Thursday December 24, 2020 Friday (OFF FRI)December 25, 2020 Wednesday December 23, 2020 Thursday December 31, 2020 Thursday December 31, 2020 Sunday Monday Tuesday Wednesday Thursday FRIDAY Saturday 20 21 22 23 24 25 26 Work Day Work Day Holiday - Moved from 12/25/20 (Off Friday) Holiday OFF FRIDAY Sunday Monday Tuesday Wednesday Thursday Friday 2 27 28 29 30 31 1 Saturday Holiday - Moved from 11/27/20 (Off Friday) Paid Furlough Paid Furlough Holiday Holiday President's Day Thanksgiving Day Day after Thanksgiving New Year's Eve Christmas Eve Independence Day Columbus Day Veteran's Day Memorial Day DECEMBER 2020 JANUARY 2021 HOLIDAY FURLOUGH DECEMBER 2020 Labor Day Christmas Day CITY OF SARATOGA 2020 PAID HOLIDAYS HOLIDAY New Year's Day MLK Birthday 94 X:\Negotiations\2019 General\Holiday Sch 20216/26/201911:30 AM ACTUAL DAY ACTUAL DATE DAY OBSERVED DATE OBSERVED Friday January 1, 2021 Friday January 1, 2021 Monday January 18, 2021 Monday January 18, 2021 Monday February 15, 2021 Monday February 15, 2021 Monday May 31, 2021 Monday May 31, 2021 Sunday July 4, 2021 Monday July 5, 2021 Monday September 6, 2021 Monday September 6, 2021 Monday October 11, 2021 Monday October 11, 2021 Thursday November 11, 2021 Thursday November 11, 2021 Thursday November 25, 2021 Thursday November 25, 2021 Friday (OFF FRI)November 26, 2021 Thursday December 23, 2021 Friday (OFF FRI)December 24, 2021 Monday December 27, 2021 Saturday December 25, 2021 Tuesday December 28, 2021 Friday December 31, 2021 Friday December 31, 2021 Sunday Monday Tuesday Wednesday Thursday FRIDAY Saturday 20 21 22 23 24 25 Work Day Work Day Work Day Holiday - Moved from 11/26/21 (Off Friday)Off Friday Sunday Monday Tuesday Wednesday Thursday Friday Saturday 26 27 28 29 30 31 1 Holiday - Moved from 12/24/21 (Off Friday) Holiday - Moved from 12/25/21 (Saturday) Paid Furlough Day Paid Furlough Day Holiday Sunday Monday 2 3 Holiday - Moved from 1/1/22 (Saturday) JANUARY 2022 DECEMBER 2021 Veteran's Day Columbus Day Labor Day DECEMBER 2021 President's Day Thanksgiving Day Day after Thanksgiving Christmas Eve Christmas Day HOLIDAY FURLOUGH JANUARY 2022 CITY OF SARATOGA 2021 PAID HOLIDAYS HOLIDAY New Year's Day MLK Birthday New Year's Eve Memorial Day Independence Day 95 X:\Negotiations\2019 General\Holiday Sch 2022 6/26/2019 11:30 AM ACTUAL DAY ACTUAL DATE DAY OBSERVED DATE OBSERVED Saturday January 1, 2022 Monday January 3, 2022 Monday January 17, 2022 Monday January 17, 2022 Monday February 21, 2022 Monday February 21, 2022 Monday May 30, 2022 Monday May 30, 2022 Monday July 4, 2022 Monday July 4, 2022 Monday September 5, 2022 Monday September 5, 2022 Monday October 10, 2022 Monday October 10, 2022 Friday (OFF FRI)November 11, 2022 Thursday November 10, 2022 Thursday November 24, 2022 Thursday November 24, 2022 Friday (OFF FRI)November 25, 2022 Thursday December 22, 2022 Saturday December 24, 2022 Monday December 26, 2022 Sunday December 25, 2022 Tuesday December 27, 2022 Saturday December 31, 2022 Friday December 30, 2022 Sunday Monday Tuesday Wednesday Thursday Friday Saturday 18 19 20 21 22 23 24 Work Day Work Day Work Day Holiday- Moved from 11/25/22 (Off Friday)Off Friday Holiday Sunday Monday Tuesday Wednesday Thursday Friday Saturday 25 26 27 28 29 30 31 Holiday - Moved from 12/24/22 (Saturday) Holiday - Moved from 12/25/22 (Sunday) Paid Furlough Day Paid Furlough Day Holiday - Moved from 12/31/22 (Saturday) Sunday Monday Tuesday Wednesday Thursday Friday Saturday 1 2 3 4 5 6 7 Holiday - Moved from 1/1/23 (Sunday) Return to work Work Day Work Day Off Friday Columbus Day DECEMBER 2022 CITY OF SARATOGA 2022 PAID HOLIDAYS HOLIDAY Christmas Eve Memorial Day Christmas Day Independence Day New Year's Day MLK Birthday Labor Day JANUARY 2023 President's Day Thanksgiving Day Day after Thanksgiving DECEMBER 2022 Veteran's Day HOLIDAY FURLOUGH New Year's Eve 96 X:\Negotiations\2019 General\Holiday Sch 20236/26/201911:30 AM ACTUAL DAY ACTUAL DATE DAY OBSERVED DATE OBSERVED Sunday January 1, 2023 Monday January 2, 2023 Monday January 16, 2023 Monday January 16, 2023 Monday February 20, 2023 Monday February 20, 2023 Monday May 29, 2023 Monday May 29, 2023 Tuesday July 4, 2023 Tuesday July 4, 2023 Monday September 4, 2023 Monday September 4, 2023 Monday October 9, 2023 Monday October 9, 2023 Saturday November 11, 2023 Thursday November 9, 2023 Thursday November 23, 2023 Thursday November 23, 2023 Friday (OFF FRI)November 24, 2023 Tuesday December 26, 2023 Sunday December 24, 2023 Wednesday December 27, 2023 Monday December 25, 2023 Monday December 25, 2023 Sunday December 31, 2023 Tuesday January 2, 2024 Sunday Monday Tuesday Wednesday Thursday Friday Saturday 17 18 19 20 21 22 23 Work Day Work Day Work Day Work Day Off Friday Sunday Monday Tuesday Wednesday Thursday Friday Saturday 24 25 26 27 28 29 30 Holiday Holiday - Moved from 11/24/2023 (Sunday) Holiday - Moved from 12/24/2023 (Sunday) Paid Furlough Day Paid Furlough Day December 2023 Sunday Monday Tuesday Wednesday Thursday Friday Saturday 31 1 2 3 4 5 6 Holiday Holiday - Moved from 12/31/23 (Sunday) Return to Work Work Day Off Friday CITY OF SARATOGA 2023 PAID HOLIDAYS HOLIDAY New Year's Day MLK Birthday President's Day DECEMBER 2023 JANUARY 2024 Thanksgiving Day Day after Thanksgiving Christmas Eve Christmas Day New Year's Eve HOLIDAY FURLOUGH Labor Day Columbus Day Veteran's Day DECEMBER 2023 Memorial Day Independence Day 97 RESOLUTION NO. 19-036 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SARATOGA ADOPTING MEMORANDUM OF UNDERSTANDING FOR THE "UNION" (Northern California Carpenters Regional Council , Carpenters Forty Six Counties Conference Board and Their Affiliated Local Unions) July 1, 2019 to June 30, 2023 WHEREAS, representatives ofthe City and the UNION have reached agreement on matters relating to the employment conditions of said employees, as reflected by the written Tentative Agreement for the Memorandum of Understanding; and WHEREAS, the Tentative Agreement for the Memorandum of Understanding was ratified by the UNION membership on May 14,2019 and presented to the City Council on June 19,2019;and WHEREAS, this Council finds that the terms and conditions contained in said Tentative Agreement for the Memorandum of Understanding fair and proper and in the best interest of the City. NOW, THEREFORE BE IT RESOLVED, by the City Council ofthe City of Saratoga the terms and conditions contained in said Tentative Agreement for the Memorandum of Understanding for the "UNION" July 1, 2019 to June 30, 2023 are hereby ratified and adopted as the Memorandum of Understanding. The above and foregoing resolution was passed and adopted at a regular meeting of the Saratoga City Council held on the 19th day of June 2019 by the following vote: AYES: NOES: ABSENT: ABSTAIN: Mayor E. Manny Cappello, Vice Mayor Howard Miller, Council Members Rishi Kumar, Mary-Lynne Bernald , Yan Zhao DATE: 98 RESOLUTION NO. 19-039 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SARA TOGA APPROVING COMPENSATION AND TERMS OF EMPLOYMENT FOR UNREPRESENTED EMPLOYEES WHEREAS, certain City job classifications are unrepresented, which means incumbents do not engage in collective bargaining with the City on matters related to wages, benefits and other terms and conditions of employment; and WHEREAS, Unrepresented Employees are those employees in unrepresented job classifications who after successful completion ofthe City's mandatory 12-month probationary period (if applicable), become regular, benefited full-time employees; and WHEREAS, Unrepresented Employees are subject to the City's Personnel Rules and Policies adopted by the City Council and are subject to the terms in this Resolution (except as modified by subsequent personnel rules and policies and resolutions , if any, applicable to such an unrepresented, regular, full-time employee); and WHEREAS, this Council finds that the compensation and terms of employment attached (Exhibit A) to this Resolution are fair and proper and in the best interest of the City ; and NOW, THEREFORE BE IT RESOLVED, by the City Council ofthe City of Saratoga the compensation and terms of employment attached to said Resolution for Unrepresented Employees is hereby adopted , becomes effective on July I , 2019, and supersede the terms in Resolution No. 17-002. The above and foregoing resolution was passed and adopted by the Saratoga City Council at a regular meeting held on the 19'" day of June 2019 , by the following vote: AYES: NOES : ABSENT: ABSTAIN: Mayor E. Manny Cappello, Vice Mayor Howard Miller, Council Members Rishi Kumar, Mary-Lynne Bernald, Van Zhao E. Manny Cappello, Mayor DATE: 99 CITY OF SARA TOGA UNREPRESENTED CLASSIFICATIONS COMPENSATION AND TERMS OF EMPLOYMENT I. INTRODUCTION This Resolution establishes the compensation and other terms for benefited regular full-time unrepresented job classifications that are not included in a collective bargaining agreement, memorandum of understanding, or employment contract. Unrepresented classifications are subject to the City's Personnel Rules and Policies adopted by the City Council and are subject to the terms in this Resolution (except as modified by subsequent personnel rules and policies and resolutions, if any, applicable to such an unrepresented, regular, full-time employee). The terms in this document, once adopted by the City Council, supersede the terms in Resolution 17-002. II. UNREPRESENTED JOB CLASSIFICATIONS Assistant City Manager Chief Building Official City Clerk Community Development Director Finance and Administrative Services Director Finance Manager Human Resources Manager Human Resources Technician Parks Division Manager Public Information Officer Public Works Director Streets and Fleets Division Manager Any other job classification determined not appropriate to be included in a represented bargaining unit. III. COST OF LIVING ADJUSTMENT Each employee shall receive an annual cost-of-living adjustment of no less than one percent (1.0%) and no greater than the following annual maximum, as based upon the annual average for the 12- month period of January to December of the U.S. Department of Labor, Bureau of Labor Statistics, "All Urban Consumers (CPI-U)" for the "San Francisco-Oakland-Hayward" region. Maximum caps of3.87% on July 1, 2019,3.13% on July 1, 2020,3.00% on July 1, 2021, and 3.00% on July 1, 2022. For each subsequent year, each employee shall receive an annual cost-of-living adjustment of no less than one percent (1.0%) and no greater than two and one-half percent (2.5%) as based upon the annual average for the 12 month period of January to December of the U.S. Department of Labor, Bureau of Labor Statistics, "All Urban Consumers (CPI-U)" for the "San Francisco-Oakland-Hayward" region. Page 1 of 7 100 For each subsequent year (starting July 1, 2023), if the annual average falls below one percent (1.0%), each employee shall nevertheless receive a minimum one percent (1.0%) cost-of-living adjustment; ifthe above Index increases above two and one-half percent (2.5%), each classification shall nevertheless receive a maximum two and one-half percent (2.5%) cost-of-living adjustment. IV. EMPLOYEE BENEFITS A. Health and Dental Premium Contributions Effective January 1, 2016, the City will provide a monthly health insurance contribution for each employee's selected level of coverage as follows in the chart below: Em lo ee Em lo ee Plus One Em lo ee Plus Two (Famil $800.00 $1,600.00 $2,080.00 The City's monthly health insurance contribution will be adjusted annually as follows. 1. Prior to the beginning of the CalPERS open enrollment period, the City will compare the average monthly cost of all plans offered in the next calendar year for each level of coverage (Employee, Employee+ 1, and Employee +2) with the current year average monthly costs for each level of coverage. The average will be calculated by adding the cost for each plan at the same level of coverage and then dividing by the number of plans. 2. If the average cost for a level of coverage in the next calendar year will exceed the average cost for the same level in the current year, then the City's monthly contribution for that level of coverage will be increased by 50% of the difference of the two yearly averages. 3. If the average cost for a level of coverage in the next calendar year is below the average cost for the same level in the current year, then the City monthly contribution for that level of coverage will not change. The adjusted City contribution for each level of coverage for the next calendar year will be provided to the employees prior to the beginning of the open enrollment period and become effective on January 1 of each year. Examples: (1) The 2016 (base year) City monthly contribution for the family level of coverage is $2,080 and the average cost of all plans at the family level offered in 2017 will be $2,366. The City's monthly contribution will be increased to $2,168 ($2,366-$2,190 = $176,50% of the $176 difference= an increase of $88). The employee would pay the balance of $88 for the plan selected. (2) The 2017 average monthly contribution for the family level of coverage is $2,168 and the average cost of all plans at the family level offered in 2018 will be $2,554. The City's monthly contribution for 2018 would be increased from $2,168 (the 2017 rate) to $2,262 ($2,554-$2,366 = $188, 50% ofthe $188 difference= an increase of$94). The employee would pay the balance of $94 for the plan selected. If an employee selects a health insurance plan with a monthly premium above the City contribution, the employee will pay the amount above the City contribution as a pre-tax payroll deduction. Page 2 of 7 101 Based on this formula, effective January 1, 2019, the City will provide a monthly health insurance contribution for each employee's selected level of coverage as follows in the chart below: Employee Employee Employee Plus Plus One Two (Familv) $816.00 $1,632.00 $2,122.00 The City contributes 100% of the dental premium for regular, full-time employees. B. Health and Dental-In-Lieu Payments An employee who completes and submits required documents ( 1) to prove that the employee has other health insurance coverage and (2) to waive City-provided health insurance coverage will receive a payment per month of$400.00 as additional taxable wages. The employee must complete and submit any required documents and provide proof of other health insurance coverage during open enrollment (in or around October) to be eligible for the cash-in- lieu payment beginning the following January 1. Only qualifying events as defined by law allow employees to make a change to their health, dental, and/or in-lieu enrollment elections during the year (outside ofthe annual open enrollment period). Any employee who declines to accept coverage in the Dental Plan, evidenced by signing a waiver form, shall receive a monthly in-lieu payment of $25.00. C. Deferred Compensation (457 Plan) The City provides employees the opportunity to contribute toward an IRS Section 457 deferred compensation plan. Employees may contribute an amount up to a federally mandated maximum per calendar year on a pre-tax basis. For unrepresented employees that are not at-will, the City will contribute $50.00 per month to the employee's 457 Plan, which does not require the employee match that amount. In addition, for unrepresented employees that are not at-will, the City will contribute up to $100.00 per month to the employee's 457 Plan, matching the employee's contribution of up to $100.00. V. PTO CASH-OUT OPTION A PTO Cash-Out Option will not be made other than at the time of termination, except for the optional PTO cash-out plan described as follows: If an employee has used the required minimum of 80 accrued hours of PTO and/or administrative leave in the prior fiscal year, the employee is eligible to cash out up to a maximum of 200 accrued hours of PTO per fiscal year on approximately September 1 and/or March 1. An employee must maintain a minimum balance of 200 hours of accrued PTO after the cash out. Page 3 of 7 102 VI. ADMINISTRATIVE LEAVE Administrative Leave is compensated time off given to regular, full-time exempt employees of the City. This leave shall be taken in a manner consistent with Paid Time Off (PTO). Use of administrative leave is a privilege and is provided in recognition that City business often requires exempt employees to devote whatever hours are necessary, irrespective of a regular scheduled workweek, to fulfill the obligations of the job. The number of Administrative Leave hours granted to an exempt position are twenty (20), forty ( 40), or sixty-five (65) and is based on the level of responsibility of the position within the organization and the expectation of the incumbent in the position to observe their regular work schedule and perform further hours needed to satisfactorily execute the duties and responsibilities of their positions. The number of Administrative Leave hours granted to exempt positions are determined by the City Manager at the time the exempt classification and job description is established, because of a reclassification, or before a vacant classification is re-filled. Sixty-five (65) hours of Administrative Leave is granted to the following exempt classifications: Assistant City Manager Chief Building Official City Clerk Community Development Director Finance and Administrative Services Director Finance Manager Human Resources Manager Parks Division Manager Public Information Officer Public Works Director Streets and Fleets Division Manager Administrative leave cannot be carried over from year to year and must be used by June 30th of the fiscal year in which it was provided. Administrative Leave must be exhausted prior to using PTO. VII. RETIREMENT (PERS) The City is a contracting agency of the California Public Employees Retirement System (PERS). Regular employees become members immediately upon employment and become vested after five years of full- time service. Tier 1: CalPERS Retirement Plan of2%@55 for Employees Hired Before July 1, 2011: The City, through its contract with PERS, provides for retirement benefits for any employee hired before July 1, 2011 as defined by the 2%@55 retirement plan formula (contract effective date: September 1, 1999). The City's 2%@55 contract with PERS includes Government Code 20042 -the final compensation is the average full-time monthly pay rate for the highest 12 consecutive months. As of July 1, 2011, each employee covered by the 2%@55 retirement plan formula will pay 7% of the employee's compensation on a pre-tax basis for the employee's 7% fixed share of the CalPERS defined benefit retirement program. Page 4 of 7 103 Tier 2: CalPERS Retirement Plan of 2%@60 for Employees Hired July 1, 2011 Through December 31, 2012: Each employee covered by the 2%@60 plan will pay 7% of the employee's compensation on a pre-tax basis. New Hire CalPERS Retirement Plan For Employee Hired January 1, 2013 and After: Any employee hired on or after January 1, 2013, who does not meet the exceptions as specified in state law to be a "classic" member ofPERS, will receive the following 3rd tier retirement option: a) A retirement plan of2% at 62 as required by state law (PEPRA). b) Each employee will pay on a pre-tax basis 100% of the employee's contribution as determined by PERS toward the CalPERS 2%@62 retirement plan. An employee hired after January 1, 2013 who meets an exception under state law to be a "classic" member ofPERS will receive the second tier plan of2% at 60 noted above. VIII. 7-STEP SALARY RANGE TABLE An employee who has received a cumulative rating of "meets expectations" or greater during the fiscal year employee perfonnance evaluation will be eligible to receive a pay increase of five percent (5%) (1 step) above their existing pay while progressing from Step 1 to Step 5. The employee shall advance to Step 6 after four (4) additional years of service in the same classification at step 5. The employee shall advance to Step 7, the top of the range, after another additional four ( 4) years of service in the same classification at step 6. IX. WORKING CONDITIONS The City operates on a 9/80 work schedule determined by the City Manager where a full-time work week, constitutes forty ( 40) hours within seven consecutive 24 hour days, also defined as one hundred sixty-eight (168) hours. Employees on a 9/80 schedule are scheduled to work 8 nine hour days, 1 eight hour day, and have one day off every two weeks. An employee's workweek begins in the middle of the employee's 8 hour day and the employee's day off is on the same day of the week in the following week. For example, the standard 9/80 work schedule is as follows: Page 5 of 7 104 Sunday Monday Tuesday Wednesday Thursday Friday Saturday 4 (end) off 9 9 9 9 4 (start) off off(end) off 9 9 9 9 off(start) off 4 (end) off 9 9 9 9 4 (start) off off(end) off 9 9 9 9 off (start) off The City Manager has discretion to require Unrepresented employees to work a schedule different from the standard 9/80 schedule including a schedule that is not 9/80. Fridays when the City is not open for business are referenced as "off-Fridays." The work period (pay period) is the period encompassing two consecutive workweeks. A holiday furlough will exist whereby the City operations are closed from December 24 through January 1 of every year. Two furlough days shall be compensated as a regular day's salary. To be paid for a furlough day, an employee must be on paid status the week of the furlough with the City. All part-time employees and employees on short-tenn disability shall receive furlough pay on a pro-rata basis. For any remaining furlough days, employees shall utilize their available balances (earned paid time off or earned compensatory time), if applicable. Employees that utilize unpaid leave due to an insufficient leave balance shall maintain regular benefit status. Employees may not utilize unpaid leave prior to exhausting their available balances, except with prior written authorization signed by the City Manager. X. AT-WILL EMPLOYEE BENEFITS The following positions are at-will and serve at the pleasure of the City Manager: Assistant City Manager Community Development Director Finance and Administrative Services Director Public Works Director A. Severance Should the City Manager choose to terminate an at-will employee, the following severance provisions apply and will be made available to the employee if the separated employees signs and agrees to be bound by a written general release agreeing not to sue and waiving claims and recovery against the City and all City representatives and agents. Page 6 of 7 105 857183.1 Starting on the one-year anniversary of the date of hire, employee shall be eligible for a general release agreement with (A) a severance payment equal to three (3) month's salary; and (B) Health Insurance and Dental Insurance benefits specified in this agreement for a three (3) month period after termination. The severance payment and continuation of benefits listed above shall be increased by one (1) month for each year on the employee's anniversary date up to a maximum of six (6) months' severance pay and benefits. At the discretion of the employee whose employment has been terminated, the severance payment shall be paid either in a lump sum, or in bi-weekly payments, beginning within ten (1 0) days of the effective date of termination or within ten (1 0) days of the effective date of the signed general release, whichever is later. If an employee selects bi-weekly payments, the employee may later choose to receive a lump sum payment for the balance of the monthly severance payments. The change from bi-weekly payments to a lump sum payment for the balance will be processed as soon as reasonably feasible and by no later than two weeks after the employee chooses to change to a lump sum payment for the balance. The severance payment shall be based on the employee's then monthly salary. Severance benefits will be provided as follows: Health Insurance: The employee must enroll in COBRA, directly through their existing health plan provider, for extended health insurance. The employee must pay the health insurance premium directly to his/her provider and submit a copy of the premium invoice and proof of payment to the City for reimbursement. Dental Insurance: The City is able to directly enroll the employee in COBRA, through the City's carrier, for extended dental insurance. The employee must contact the Human Resources Division and complete any requested documents to activate acceptance of COBRA for dental insurance. The Human Resources Division will provide to the employee a letter detailing all of the above instructions, and providing the necessary paperwork in a timely fashion, sufficient to ensure that the employee does not become ineligible for continued coverage. B. Deferred Compensation (457 Plan) The City will match at-will employee contributions to a deferred compensation account up to a maximum of $250.00 per month. C. Car Allowance Each at-will employee shall receive a monthly $275.00 car allowance. Page 7 of 7 106 CITY OF SARATOGA Position Salary Range Table as of July 1, 2019 1.0387 POSITION TITLE (FLSA Classification) 1 2 3 4 5 6 7 Administrative Services Director 6,839.20 7,180.80 7,540.00 7,916.80 8,312.80 8,728.80 9,165.60 (FLSA Exempt)177,819.20 186,700.80 196,040.00 205,836.80 216,132.80 226,948.80 238,305.60 85.49 89.76 94.25 98.96 103.91 109.11 114.57 Assistant City Manager 7,143.20 7,500.00 7,875.20 8,268.80 8,682.40 9,116.80 9,572.80 (FLSA Exempt)185,723.20 195,000.00 204,755.20 214,988.80 225,742.40 237,036.80 248,892.80 89.29 93.75 98.44 103.36 108.53 113.96 119.66 Building Official 4,984.00 5,233.60 5,495.20 5,769.60 6,058.40 6,361.60 6,680.00 (FLSA Exempt)129,584.00 136,073.60 142,875.20 150,009.60 157,518.40 165,401.60 173,680.00 62.30 65.42 68.69 72.12 75.73 79.52 83.50 City Clerk 4,376.00 4,595.20 4,824.80 5,066.40 5,320.00 5,586.40 5,865.60 (FLSA Exempt)113,776.00 119,475.20 125,444.80 131,726.40 138,320.00 145,246.40 152,505.60 54.70 57.44 60.31 63.33 66.50 69.83 73.32 Community Development Director 6,750.40 7,088.00 7,442.40 7,814.40 8,204.80 8,615.20 9,045.60 (FLSA Exempt)175,510.40 184,288.00 193,502.40 203,174.40 213,324.80 223,995.20 235,185.60 84.38 88.60 93.03 97.68 102.56 107.69 113.07 Finance Manager 4,960.00 5,208.00 5,468.80 5,742.40 6,029.60 6,331.20 6,648.00 (FLSA Exempt)128,960.00 135,408.00 142,188.80 149,302.40 156,769.60 164,611.20 172,848.00 62.00 65.10 68.36 71.78 75.37 79.14 83.10 Human Resources Manager 5,546.40 5,824.00 6,115.20 6,420.80 6,741.60 7,078.40 7,432.00 (FLSA Exempt)144,206.40 151,424.00 158,995.20 166,940.80 175,281.60 184,038.40 193,232.00 69.33 72.80 76.44 80.26 84.27 88.48 92.90 Human Resources Technician 3,014.40 3,164.80 3,323.20 3,489.60 3,664.00 3,847.20 4,039.20 (FLSA Non-Exempt)78,374.40 82,284.80 86,403.20 90,729.60 95,264.00 100,027.20 105,019.20 37.68 39.56 41.54 43.62 45.80 48.09 50.49 Public Information Officer 3,816.80 4,008.00 4,208.80 4,419.20 4,640.00 4,872.00 5,116.00 (FLSA Exempt)99,236.80 104,208.00 109,428.80 114,899.20 120,640.00 126,672.00 133,016.00 47.71 50.10 52.61 55.24 58.00 60.90 63.95 Public Works Director 7,019.20 7,370.40 7,739.20 8,126.40 8,532.80 8,959.20 9,407.20 (FLSA Exempt)182,499.20 191,630.40 201,219.20 211,286.40 221,852.80 232,939.20 244,587.20 87.74 92.13 96.74 101.58 106.66 111.99 117.59 Public Works Manager - Parks 4,543.20 4,770.40 5,008.80 5,259.20 5,522.40 5,798.40 6,088.00 Public Works Manager - Streets 118,123.20 124,030.40 130,228.80 136,739.20 143,582.40 150,758.40 158,288.00 (FLSA Exempt)56.79 59.63 62.61 65.74 69.03 72.48 76.10 STEP RANGES UNREPRESENTED FY 2019/20 Z:\Admin Services\Payroll Files\SALARY RANGES MASTER\FY 2019-20\FY 2019-20 Salary Schedule at 7.1.2019 - copy Revision Date: 7/19/2019 107 SARATOGA CITY COUNCIL MEETING DATE:January 4, 2023 DEPARTMENT:Administrative Services PREPARED BY:Nick Pegueros SUBJECT:2023-24 Budget Considerations and 3-year Forecast Presentation RECOMMENDED ACTION: Receive presentation on major 2023-24 budget considerations and a preliminary 3-year forecast. BACKGROUND: As outlined in the 2022-23 budget, City staff anticipated several factors that will likely present challenges in adopting a structurally balanced budget as early as fiscal year 2023-24. The following information is provided in advance of the City Council’s February retreat to provide time for Councilmember and public requests for additional information and analysis to aid the retreat discussion. City Council will receive a presentation on major budget considerations for fiscal year 2023-24 at their January 4 meeting,including a preliminary 3-year budget forecast. This report identifies the three most significant operating budget considerations for 2023-24 and transmits background information. Solid Waste Franchise Fee Revenue -The most significant revenue consideration in 2023-24 is the potential loss of solid waste franchise fees because of the California State Supreme Court’s ruling in Zolly v. City of Oakland, Attachment A. A decision on the future of solid waste franchise fees with the Zolly decision is pending action by the West Valley Solid Waste Management Authority (WVSWMA), the solid waste joint powers authority responsible for solid waste management in Saratoga, Campbell, Los Gatos, and Monte Sereno. Saratoga receives approximately $1.3 million yearly from solid waste franchise fees collected by WVSWMA. Personnel Expenditures –The City’s largest expenditure, employee salaries and benefits, are entering negotiation for contracts to replace two labor contracts expiring on June 30, 2023. A separate January 4 agenda item is dedicated to labor costs and the upcoming talks with labor units. 108 Law Enforcement Expenditures –The City’s second largest expenditure is its contract with Santa Clara County Sheriff’s Office for law enforcement, Attachment B. The City may elect to modify services provided under the agreement, Section I. D. “Plan of Service,” with notification to the Sheriff’s Office by March 1. Service level changes, if any, can impact contract costs for the upcoming year, and Attachment C provides the most recent service level report. The current law enforcement agreement expires on June 30, 2024. ATTACHMENT: Attachment A – “California Supreme Court ruling in franchise fee case offers more questions than answers” by CalCities (League of California Cities) Attachment B – Contract with Santa Clara County Sheriff’s Office Attachment C – Law Enforcement Services Overview 109 California Supreme Court ruling infranchise fee case offers morequestions than answers Aug 24, 2022 City officials who have questions about the impact of this ruling should consult their city attorney The California Supreme Court recently issued an opinion in a case challenging the franchise fees that the city of Oakland charges to certain waste hauling companies. In Zolly v. City of Oakland, the court concluded that it did not have enough evidence to rule as a matter of law that the fees are exempt from the voter approval requirements that apply to taxes under Proposition 26, Article XIII C of the California Constitution. The case was then sent back down to the lower court for further proceedings. In the meantime, the legal landscape pertaining to franchise fees remains unsettled. In the case, the city argued that the fees were categorically exempt from voter approval requirements under subsection (e)(4) of Section 1 of Article XIII C, which exempts charges “imposed for entrance to or use of local government property, or the purchase, rental, or lease of local government property.” The League of California Cities supported this argument in a pair of amicus filings (available here (https://www.cacities.org/Resources-Documents/Member- Engagement/Professional-Departments/City-Attorneys/Library/2021/Zolly-v-City-of- Oakland_Supreme-Court-Amicus-Brief) and here (https://www.cacities.org/Resources- Documents/Member-Engagement/Professional-Departments/City- 110 Attorneys/Library/2022/Zolly-v-City-of-Oakland_Cal-Cities-Supplemental-L) ), noting that the court had recently ruled in another case that a franchise to use public streets or rights-of-way is a form of property. In this case, the court ruled that a franchise cannot be considered “local government property” within the meaning of article XIII C. They reasoned in part that the term “local government property” seems to refer to physical objects under the control of a local government — such as land, streets, or rights-of-way — rather than intangible property interests, such as a franchise. The court also noted that, even if the franchise were property, it was not property “of the city” before the city conferred it on the haulers. The court then concluded that the city failed to demonstrate that the waste haulers paid the challenged fees in exchange for a specific use of the streets or right-of-way that they would not have otherwise enjoyed had they not paid the fee. They also noted that the city “suggested during oral argument that the waste haulers may have attained the special ability to drive heavy vehicles and to place waste receptacles on Oakland’s streets, but these statements by counsel are not evidence and do not amount to an admission or stipulation of fact.” Thus, while this theory could not be resolved as a matter of law without evidence, Oakland will have an opportunity to present evidence supporting this theory when the case resumes before the lower court. The court also seemed to suggest that the franchise fees might fit within another exemption under article XIII C, citing an argument made by taxpayer advocates in a friend-of-the-court brief. Specifically, the court called out the exemption under subsection (e)(1) for “a charge imposed for a specific benefit conferred or privilege granted directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of conferring the benefit or granting the privilege.” 111 Although this exception limits fees to the “reasonable costs” of service, the court stated that it was leaving open the question “of how the ‘reasonable costs’ language … may apply to franchise fees, including whether the term, considered in light of the voters’ intent behind Proposition 26, should be understood to extend beyond the purely administrative costs involved in granting a franchise.” Two concurring justices criticized the majority for leaving this question open, perhaps because the question implicates the use of trash franchise fees for general fund purposes. The court’s opinion answers the question of whether the city’s franchise fees are categorically exempt from the voter approval requirements as a matter of law — and concludes they are not. But the opinion also leaves open the possibility that franchise fees are exempt on appropriate facts. Since it remains unclear exactly what those facts might be, more litigation is likely. The Oakland case will be remanded for further proceedings before the lower court and similar disputes are pending involving Los Angeles County’s landfill charges. City officials with questions about the impact of this ruling should consult their city attorney. 1400 K Street, Suite 400 Sacramento, CA 95814 P: (916) 658-8200 F: (916) 658-8240 112 113 114 115 116 117 118 119 120 121 122 123 124 Page | 0 County of Santa Clara SHERIFF’S OFFICE | 55 WEST YOUNGER AVENUE, SAN JOSE, CA 95110 Law Enforcement Contract – City of Saratoga FISCAL YEAR 2022-2023 PROPOSED COSTS 125 Page | 1 This page intentionally left blank 126 Page | 2 Table of Contents The Sheriff’s Office .......................................................................................................................................................... 3 Organizational Chart ...................................................................................................................................................... 7 Law Enforcement Contract – Background .............................................................................................................. 8 Benefits to Cities of Contracting for Services ........................................................................................................ 10 Local Public Safety Budget and Statistics .............................................................................................................. 12 Contract Costing Model ............................................................................................................................................... 14 Cost Calculation Methodology .................................................................................................................................. 15 Fiscal Year 2022-2023 Proposed Hours ................................................................................................................... 16 Fiscal Year 2022-2023 Summary of Proposed Costs ............................................................................................ 17 Fiscal Years 2021-2022 and 2022-2023 Costs Comparison ................................................................................. 18 Proposed Costs and Capped Budget Comparison .............................................................................................. 20 Summary of Proposed Hourly Rates ........................................................................................................................ 21 Contract Cities’ Statistical Data ................................................................................................................................. 22 Statistical Data – City of Saratoga ............................................................................................................................. 27 127 Page | 3 The Sheriff’s Office Currently, The Sheriff’s Office currently has 1,791.5 employees. Of those employees, 1,360 of them are sworn law enforcement officers and 431.5 of them are non-sworn, professional staff who provide support to the entire operation. In addition to the full-time badge staff, the Sheriff’s Office has numerous Reserve Deputy Sheriffs. The Sheriff's Office is divided into 4 major bureaus: Administrative Services, Enforcement, Custody, and Support Services. I. Administrative Services The Administrative Services bureau is comprised of the following divisions: Budget Management and Accounting (Fiscal) Division – performs a number of critical back-end services for the citizens of the County of Santa Clara in addition to providing support services directly to the Santa Clara County Sheriff’s Office. As part of the Administrative Services Bureau, Fiscal is responsible for Budget Management, Cost Accounting and overall Fiscal Services. Personnel, Backgrounds and Reserves Division – responsible for the overall management of department personnel practices including recruitment/selection activities and employment background investigations, on-boarding procedures for badge and civilian staffs, employee relation activities including managing employee performance evaluation, and administration of leaves, injury and return-to-work program. Information Systems Division – manages the operation of multiple systems in the Sheriff’s Office and other neighboring counties in the South Bay region. The division provides support for desktop, laptop, and other specialized equipment to about 2,000 internal users throughout the agency and support for regional Law Enforcement Telecommunications System (SLETS) and California Law Enforcement Telecommunication Systems (CLETS) to over 3,200 users from local, state, and federal law enforcement agencies. In addition, the division also provides support for networking, databases, infrastructure, applications, software development, and security systems that are unique to law enforcement and custody agencies. Legislative, Contracts and Analysis Division – responsible for the creation and management of contracts, grants and legislative files for Board and Committee meetings. Sheriff’s Identification Unit – responsible for providing accurate, timely and complete fingerprint comparison and identification services to law enforcement agencies across Santa Clara County. II. Enforcement - comprised of the following divisions Headquarters Patrol Headquarters Patrol provides 24-hour uniformed law enforcement patrol services for most county buildings and all Central, East, and South unincorporated areas of Santa Clara County. The unincorporated areas of the Mount Hamilton Range, including Mount Hamilton, San Antonio Valley, Isabel Valley, San Felipe Valley, and Hall’s Valley, are patrolled from this station. The unincorporated south county communities of San Martin, Rucker, and Uvas Canyon as well as the unincorporated areas surrounding Morgan Hill and Gilroy are patrolled by units from the South County Station. The Sheriff’s Office is also responsible for the Parks Patrol Unit that provides law enforcement services for the 27 parks and lakes managed by the Santa Clara County Parks Department. Also, the Rural Crimes Unit was formed in 1992 and specializes in crimes associated with rural farming businesses. 128 Page | 4 West Valley Patrol The West Valley (WV) Patrol Division of the Sheriff’s Office proudly serves the Cities of Saratoga, Cupertino, Town of Los Altos Hills, as well as the Western Unincorporated areas of the county from Summit Road to Moffett Field. The WV Patrol Division is committed to providing progressive law enforcement services and maintaining healthy community partnerships. Deputies are routinely involved in community events across all cities. There are 83 sworn positions and 7 professional support staff assigned to the West Valley Patrol Division. Deputies provide a full range of law enforcement responsibilities to include Patrol, Traffic Enforcement, Investigative Services, School Resource Officers, Neighborhood Resource Officers, K-9 Services, and Special Enforcement assignments. The Division employs modern strategies such as community-oriented policing, predictive policing, as well as innovative and progressive initiatives geared toward enhancing the quality of life measures. A full-time analyst works directly with patrol deputies and detectives to identify crime trends. Deputies perform daily enforcement duties with the goal of making neighborhoods safe by bringing criminals to justice. The Division is managed by Captain Rich Urena, who works closely with each city and the various communities. Transit Patrol The Sheriff Transit Patrol Division provides contracted supplemental general law enforcement services for the Valley Transportation Authority (VTA) with the primary goal of safety for VTA patrons, employees, and the security of VTA vehicles and properties. VTA’s mass transit system of bus and light rail operations includes a 346 square mile service area that extends through 15 municipalities and unincorporated Santa Clara County. Law Enforcement responsibilities in the Sheriff Transit Patrol Division include 24-hour uniformed patrol, explosives detection K-9s, motorcycle patrol, bicycle patrol, detectives, and a special team focused on transit-related crime suppression. The Sheriff’s Office Transit Patrol Division also provides supplemental law enforcement services for Valley Transportation Authority property and assets located at the Milpitas BART Station. Investigative Services The Investigative Services Division operates out of three primary locations: Headquarters, West Valley Station, and South County Station. To accomplish the mission of the Investigative Services Division, investigators are trained for general investigation and receive additional training for specific areas of expertise. In order to ensure that each crime is properly investigated by a detective with skill and experience, the units are each dedicated to a particular type of crime. Special Operations The Special Operations Division encompasses the Special Teams, Mutual Aid Coordinator, Air Support Unit, Intelligence Unit, Covert Investigations Unit (CIU), Fugitive Apprehension & Surveillance Team (FAST), Civil Enforcement Unit, and Civil Support Unit. III. Custody The Santa Clara County Sheriff’s Office Custody Division is the fifth largest jail system in California and among the 20 largest systems in the United States. Our jail is among the 100 systems nationwide, with an inmate population of more than 1,000. The average daily population for the Santa Clara County Correctional facilities was approximately 2,503 inmates a day at the end of October 2021. Approximately 48,000 arrestees are booked annually, with an average length of stay of about 275 days. 129 Page | 5 The Custody Bureau consists of several divisions: Main Jail Facility, Elmwood Correctional Facility, Custody Administrative Services, Jail Reforms, Support Services, and Compliance. IV. Support Services Support Services are comprised of the following services: Training & Professional Development Division The Training and Professional Development Division supports the professional growth and development of Sheriff’s Office personnel. The division provides innovative and relevant law enforcement training utilizing contemporary instructional concepts that support a learner-centered focus on learning for our personnel’s entry-level and continuing education. The division offers state- of-the-art training for the Law Enforcement and Custody Bureaus through a multifaceted but distinct group of training programs, including: • Santa Clara County Justice Training Center • In-Service Training • Entry Training Programs • Body-Worn Camera (BWC) Program • Regional Firearms Training Facility • Regional Driver Training Center • Advanced Officer Training The Training and Professional Development Division is responsible for all training related to sworn staff, including entry-level academy training for Enforcement and Custody deputies, field training and on-the-job training, continuing education and perishable skills training, firearms and de-escalation training, and advanced officer training programs. Sworn and professional staff comprise the Training and Professional Development Division to provide instruction; manage, facilitate, track, and schedule training; develop and certify contemporary training curriculum; facilitate and supervise training programs and academies; and collect and report training compliance, both internally and to governing bodies, including the California Commission on Peace Officer Standards and Training (POST) and the California Board of State and Community Corrections (STC). Additional staff, including extra-help instructors and personnel from other divisions through collateral assignments, provide quality instruction as subject matter experts for the academy and in- service training programs. Court Security Court Security division provides security to the eight State of California Superior Courts located within Santa Clara County on a contract basis. The number of sworn and professional staff assigned to the Court Security Contract ranges from 125 to 212. There are many specialized assignments within the Court Security Division to include Judicial/Dignitary Protection, Felony and Misdemeanor Court Trial Bailiffs, Risk Assessment Unit, CIT trained Dual Diagnosis Court Bailiffs, Juvenile Dependency Bailiffs, Juvenile Court Bailiffs Holding Cell Operations and Court Movement Deputies. More than 1,250,000 people pass through our security screening stations each year. Deputies and Sheriff’s Technicians operate security screening stations at the entrance of each court facility. Their primary job is to ensure no illegal or dangerous items enter a court facility. 130 Page | 6 Valley Medical Center Security Valley Medical Center Security division provides oversight of all security and law enforcement services for Santa Clara County Health System (SCC Health System), 24-hours a day, 7-days per week. SCC Health System comprises Valley Medical Center Hospital and Clinics, O'Connor Hospital, St. Louise Regional Hospital, DePaul Health Center, and numerous Valley Health Centers. SCC System employs approximately 10,000 employees, two-thirds of which are assigned to the Valley Medical Campus. Stanford University Stanford University division provides oversight and operational authority to Stanford Department of Public Safety through direct supervision of the assigned Captain. The Sheriff’s Captain acts at the direction of the Sheriff in policy matters. The Sheriff’s Captain will coordinate cases involving death and serious felonies to ensure coordination and control with the Sheriff’s Office. The assigned Captain further reviews policy and procedures to safeguard adherence to the standards set by the Sheriff. Records The Records Division is the repository and the Custodian of Record for all records of the Sheriff's Office. The division is responsible for reviewing all crime reports for mandated statistical Uniform Crime Reporting (UCR) to the State Department of Justice. 131 Page | 7 Organizational Chart 132 Page | 8 Law Enforcement Contract – Background I. SERVICES City of Cupertino, City of Saratoga, and Town of Los Altos Hills entered into an agreement with the County of Santa Clara, Sheriff’s Office for the following law enforcement services: A. Law Enforcement Services - include patrol of established beats, responses to emergency calls, investigative services and other law enforcement services. B. Supplemental Services – as requested by the City which may include traffic law enforcement beyond the basic services, crime prevention patrols, and other law enforcement services that are acceptable of being scheduled and within the capability of the Sheriff to provide. C. Supplemental Reserve Services – services provided by reserve sheriff deputies such as transportation of arrestees from the arrest location to the appropriate jail facility and additional services as requested by City and approved by the Sheriff’s Office. D. Booking and Processing Services – include booking and processing services to those arrested persons within the corporate limits of City and who are brought to County jail for booking or detention. E. Communication Services – emergency communication services in support of the Sheriff’s Office and City’s operations. Services include 24 hour per day 9-1-1 telephone answering and radio dispatching of Sheriff’s personnel. II. COMPENSATION Law Enforcement Services FY 2014-2015 base rate. Annual increase limited to the lesser of (a) percentage increase in total compensation and annual PERS cost increase or (b) annual CPI/W plus 2% and annual PERS cost increase. Supplemental/Reserve Services a. Primary Rate – average full cost of a single Deputy with patrol vehicle b. Supplemental Day Rate – cost of a single Deputy with patrol vehicle during periods when the night shift differential salary increment is not payable c. Supplemental Night Rate – cost of a single Deputy with patrol vehicle during periods when the night shift differential salary increment is payable d. Supplemental Reserve Rate – cost of two Reserve Deputy Sheriff with patrol vehicle e. Investigative Service Rate – average full cost per hour of an investigator’s time. Base Rent and Operating Costs of Westside Substation The cities’ share of the base rent and operating cost will be based upon the lease agreement between the County and Dollinger Properties, LLC. The monthly base rent will increase 2.5% each year. The cities shall be responsible for the base rent increase and any increase in operating expenses and real estate taxes allocated to the building to the extent that such expenses exceed costs incurred in the FY2014-2015 base year. Yearly controllable operating costs shall be capped at 5%. The cities’ share of the operating cost and base rent will be a prorated amount based upon the actual billable hours as indicated in the COPANA reports. III. TERM OF AGREEMENT – July 1, 2014 to July 1, 2024. The agreement may be terminated without cause upon giving 180 days written notice of such termination to the other party. At the expiration of this ten (10) year contract, this contract can be renewed for an additional five (5) year period upon written notice of renewal by City and the County to other parties upon 180 days advance notice. 133 Page | 9 IV. ANNUAL CONTRACT USAGE HISTORY Saratoga FY15-16 FY16-17 FY17-18 FY18-19 FY19-20 FY20-21 FY21-22 Services General Law Enforcement Hours 20,060.0 20,060.0 20,060.0 20,060.0 20,060.0 20,060.0 20,060.0 Traffic Enforcement – Days - Hours 4,195.4 4,195.4 4,195.4 4,195.4 4,195.4 4,195.4 4,195.4 Investigative Hours 2,400.0 2,400.0 2,400.0 2,400.0 2,400.0 2,400.0 2,400.0 Reserve Activity Hours 340.0 340.0 340.0 340.0 340.0 340.0 340.0 Special Services – Traffic Sergeant - - - - - - - School Resources Officer $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $251,445 Projected Costs $4,973,080 $5,176,173 $5,420,767 $5,680,745 $6,057,371 $6,417,203 $6,841,990 Actual Costs $4,981,030 $5,170,962 $5,200,757 $5,678,842 $5,958,047 $6,406,882 134 Page | 10 Benefits to Cities of Contracting for Services Contracting for police services may help a community enhance its level and quality of service delivered, providing an array of services that can be revised as needs change and at a cost less than that for supporting an independent law-enforcement organization. Cost Savings Communities may contract for police services for many reasons, most of which are related to resources. Contracting for police services most often resulted in significant cost savings. Savings may result from reducing administrative and command staff positions with consolidation, pooling of resources, and lower capital costs. Contracting may also provide economies of scale, as larger organizations may be more efficient and provide services at lower cost than smaller ones. Enhanced Quality and Level of Service Since the policing system is highly fragmented and leads to a significant duplication of local services that consolidation through contracting can mitigate, a city contracting for services may find it can provide equivalent services with fewer staff than in a stand-alone entity. A city may, for example, provide capacity for rare events that far exceeds its true needs. By contracting with a larger agency with specialized capabilities as needed, a city can better focus its resources on base law-enforcement services. Contracting for police services may provide an opportunity to enhance both the level and quality of service delivered. By contracting, a community can receive not only the benefits of the contract deputies assigned to it, but also has access to more specialized areas such as investigations, forensics, crime-analysis services of the Sheriff’s Office and much more. The breadth and experience in the Sheriff’s Office far exceed those in smaller cities’ police departments. Cost savings Staffing flexibility Efficient use of resources Appropriate staffing level Enhanced level of service Enhanced quality of service Breadth & depth of experience 135 Page | 11 Efficient Use of Staffing Resources Contracting can make more efficient use of staffing resources, especially in communities with local law- enforcement agencies governed by minimum staffing levels. Such levels may be defined by collective bargaining but more often are driven by policy and practice. Such levels assume departments are autonomous and cannot rely on nearby agencies for resources. This may lead to communities setting staffing levels at an unnecessarily high level. The Sheriff’s Office has resources in the other areas, which allows basic staffing level for the city to be at a lower level but backup and supervision from others can provide additional resources when needed. 136 Page | 12 Local Public Safety Budget and Statistics County of Santa Clara, Office of the Sheriff Average Cost Per Resident for Police Services and Percent of City Budget Allocated to Law Enforcement Services 2021-2022 Police Operating Budgets # City Land Area in Square Miles (1) Population/ Square Mile Population (1) Police Budget Budget per Capita Total City Budget Percent of City Budget 1 Saratoga (2) 12.4 2,504 31,051 $6,841,990 $220 $27,498,742 24.9% 2 Cupertino (2) 11.3 5,343 60,381 $15,485,487 $256 $88,967,034 17.4% 3 Los Altos Hills (2) 8.8 965 8,489 $2,395,556 $282 $14,162,815 16.9% 4 Monte Sereno (3) 1.7 2,046 3,479 $1,067,085 $307 $7,517,634 14.2% 5 Milpitas 13.6 5,902 80,273 $28,005,667 $349 $110,385,632 25.4% 6 Morgan Hill 12.9 3,526 45,483 $16,860,145 $371 $44,689,214 37.7% 7 Gilroy 16.2 3,674 59,520 $23,614,706 $397 $55,898,942 42.2% 8 Los Altos 6.5 4,865 31,625 $13,662,657 $432 $48,800,534 28.0% 9 Campbell 5.8 7,579 43,959 $19,434,298 $442 $92,710,156 21.0% 10 San Jose 176.5 5,741 1,013,240 $487,042,420 $481 $1,587,737,216 30.7% 11 Los Gatos 11.1 3,021 33,529 $17,239,483 $514 $44,031,983 39.2% 12 Sunnyvale (4) 22.0 7,082 155,805 $84,805,138 $544 $289,316,552 29.3% 13 Mountain View 12.0 6,865 82,376 $45,518,725 $553 $156,732,510 29.0% 14 Palo Alto 23.9 2,869 68,572 $43,115,000 $629 $209,210,000 20.6% 15 Santa Clara 18.4 6,937 127,647 $80,454,471 $630 $286,025,931 28.1% Incorporated Cities 353.1 5,226.8 1,845,581 Unincorporated Areas 937.0 87.8 82,271 County Total 1,290.1 1,494.3 1,927,852 1 US Census estimates on 3/24/21 at "http://www.census.gov/quickfacts" 2 Law enforcement services in Cupertino, Los Altos Hills, and Saratoga are provided under contract by the Santa Clara County Sheriff's Office. 3 Monte Sereno's contract for police services is for 105 hours per week only. The police budget noted above is the flat rate for 105 hours. 4 The City of Sunnyvale includes both police and fire protection costs in the department's public safety budget. 137 Page | 13 Annual Crime Rate Number of Annual Crimes1 Crime Rate1 (per 1,000 residents) Name FY 2021 Public Safety Budget* Budget per Capita Population Violent Property Total Violent Property Total Monte Sereno3 $1,067,085 $307 3,479 4 15 19 1.15 4.31 5.46 Saratoga2 $6,841,990 $220 31,051 18 216 234 0.58 6.96 7.54 Los Altos Hills2 $2,395,556 $282 8,489 6 59 65 0.71 6.95 7.66 Los Altos $13,662,657 $432 31,625 23 323 346 0.73 10.21 10.94 Los Gatos $17,239,483 $514 33,529 20 406 426 0.60 12.11 12.71 Cupertino2 $15,485,487 $256 60,381 69 830 899 1.14 13.75 14.89 Morgan Hill $16,860,145 $371 45,483 59 766 825 1.30 16.84 18.14 Sunnyvale4 $84,805,138 $544 155,805 229 3,178 3,407 1.47 20.40 21.87 Santa Clara $80,454,471 $630 127,647 206 3,301 3,507 1.61 25.86 27.47 Milpitas $28,005,667 $349 80,273 111 2,103 2,214 1.38 26.20 27.58 San Jose $487,042,420 $481 1,013,240 4,375 23,847 28,222 4.32 23.54 27.85 Mountain View $45,518,725 $553 82,376 144 2,177 2,321 1.75 26.43 28.18 Palo Alto City $43,115,000 $629 68,572 81 1,931 2,012 1.18 28.16 29.34 Gilroy $23,614,706 $397 59,520 260 1,507 1,767 4.37 25.32 29.69 Campbell $19,434,298 $442 43,959 110 1,365 1,475 2.50 31.05 33.55 California 174,331 921,114 1,095,445 4.41 23.31 27.72 United States 1,245,410 6,925,677 8,171,087 3.80 21.11 24.91 1 Source from OpenJustice, Crimes & Clearance for 2020, www.openjustice.doj.ca/gov/exploration/crime-statistics/crimes-clearance 2 Law enforcement services in Cupertino, Los Altos Hills, and Saratoga are provided under contract by the Santa Clara County Sheriff's Office. 3 Monte Sereno's contract for police services is for 105 hours per week only. The police budget noted above is the flat rate for 105 hours. 4 The City of Sunnyvale includes both police and fire protection costs in the department's public safety budget. 138 Page | 14 Contract Costing Model The Sheriff’s Office (SO), Fiscal Division annually develops a cost estimate for the contracting cities based upon the Contract Costing Model. The model has been developed in-house and takes into account a variety of cost factors, which are updated annually. It is important to note that not all cost factors in use within the costing model are developed by the SO. Some of the cost factors are dictated by other County departments to the SO, and the cost is just passed along to the contracting agencies. The following points outline the overall approach utilized to calculate the baseline estimates for the contracted cities. 1. Salaries and Benefits – based on Countywide salary table, applicable benefit rates developed by County Office of Budget and Analysis, and annual salary increases and allowances specified by labor agreements. The salaries and benefits section of the contract is where the costs are captured for not only the direct staff that are assigned to each city, but also the regional and shared staff among the contracted cities. 2. Services and Supplies – the direct services and supplies include the projected expenditures for any supplies, materials, or services associated with the direct or shared staff. 3. Indirect Costs For all services provided, there are direct costs associated (salaries, benefits, services, and supplies) and indirect costs such as training, countywide support, divisional overhead, and departmental overhead. To truly capture the full cost of any service, both direct and indirect cost components must be captured. SO captures all indirect costs associated with the provision of its law enforcement services. • Overhead is calculated on a per position and is developed by taking the costs associated with those services that primarily provide support to the entire SO. The overhead calculation consists of the Personnel and Training Division, Information Systems Division, Records and Fiscal Division. For each of these areas, the cost per employee is generated by estimating the total administrative costs related to these activities and divided it by the total number of employees that are supported by those activities. The costs are then allocated to the division providing contract services based on number of staff assigned to the contract services or annual percentage of time spent on the activities (Records) . The total costs for these divisions included the applicable division’s share of the Countywide overhead. 139 Page | 15 Cost Calculation Methodology 140 Page | 16 Fiscal Year 2022-2023 Proposed Hours Cupertino Los Altos Hills Saratoga Unincorporated Areas General Law Enforcement Services (Primary Rate) Proposed Hours 41,881 5,421 20,060 14,696 Supplemental Services - Traffic Enforcement - Day Proposed Hours - Enforcement Vehicle - Deputy Sheriff 1,803 - - - Proposed Hours - Motorcycle - Deputy Sheriff 7,212 1,860 4,195 - Total Proposed Hours 9,015 1,860 4,195 - Investigative Services Proposed Hours 7,200 600 2,400 - Supplemental Reserve Services Proposed Hours 330 22 68 - Total Proposed Hours 58,426 7,903 26,723 14,696 Traffic Sergeant Number of Traffic Sergeant 1 - - - School Resources Officer Number of SRO 2 - 1 - 141 Page | 17 Fiscal Year 2022-2023 Summary of Proposed Costs Cupertino Los Altos Hills Saratoga Unincorporated Areas General Law Enforcement Services Proposed Costs $11,000,463 $1,423,880 $5,268,960 $3,860,051 Supplemental Services - Traffic Enforcement - Day Proposed Costs $2,348,306 $483,507 $1,090,875 $0 Investigative Services Proposed Costs $1,790,352 $149,196 $596,784 $0 Supplemental Reserve Services Proposed Costs $21,780 $1,452 $4,488 $0 Traffic Sergeant Proposed Costs $501,966 $0 $0 $0 School Resources Officer Proposed Costs $619,086 $0 $270,850 $0 (Cupertino - 1 SRO @ 85% and 1 SRO @ 75%; Saratoga - 1 SRO @ 70%) Operating Costs Of West Valley Substation Proposed Costs $276,245 $35,449 $121,097 $65,924 Overtime $0 $145,000 $0 $0 Total Proposed Contract Costs $16,558,198 $2,238,484 $7,353,054 $3,925,975 Total Capped Costs * $16,615,466 $2,238,516 $7,356,636 Amount in Excess of of/ (Below Budget Cap) ($57,268) ($32) ($3,582) *Increase in costs capped at the lesser of CPI+2% or the average compensation increase and PERS increase 142 Page | 18 Fiscal Years 2021-2022 and 2022-2023 Costs Comparison Cupertino Los Altos Hills Saratoga Unincorporated Areas General Law Enforcement Services Budgeted Costs FY 2021-2022 $10,168,707 $1,319,200 $4,870,568 $3,568,189 Proposed Costs FY 2022-2023 $11,000,463 $1,423,880 $5,268,960 $3,860,051 Change ($) $831,756 $104,680 $398,392 $291,862 Change (%) 8.18% 7.94% 8.18% 8.18% Supplemental Services - Traffic Enforcement - Day Budgeted Costs FY 2021-2022 $2,150,275 $443,082 $999,668 $0 Proposed Costs FY 2022-2023 $2,348,306 $483,507 $1,090,875 $0 Change ($) $198,031 $40,425 $91,207 $0 Change (%) 9.21% 9.12% 9.12% Investigative Services Budgeted Costs FY 2021-2022 $1,742,544 $145,212 $580,848 $0 Proposed Costs FY 2022-2023 $1,790,352 $149,196 $596,784 $0 Change ($) $47,808 $3,984 $15,936 $0 Change (%) 2.74% 2.74% 2.74% Supplemental Reserve Services Budgeted Costs FY 2021-2022 $107,778 $1,437 $22,209 $0 Proposed Costs FY 2022-2023 $21,780 $1,452 $4,488 $0 Change ($) ($85,998) $15 ($17,721) $0 Change (%) -79.79% 1.04% -79.79% Traffic Sergeant Budgeted Costs FY 2021-2022 $486,536 $0 $0 $0 Proposed Costs FY 2022-2023 $501,966 $0 $0 $0 Change ($) $15,430 $0 $0 $0 Change (%) 3.17% 0.00% 0.00% School Resources Officer Budgeted Costs FY 2021-2022 $574,732 $0 $251,445 $0 Proposed Costs FY 2022-2023 $619,086 $0 $270,850 $0 Change ($) $44,354 $0 $19,405 $0 Change (%) 7.72% 0.00% 7.72% 143 Page | 19 Fiscal Years 2021-2022 and 2022-2023 Costs Comparison (continued) Cupertino Los Altos Hills Saratoga Unincorporated Areas Operating Costs Of West Valley Substation Budgeted Costs FY 2021-2022 $254,915 $35,850 $117,252 $71,043 Proposed Costs FY 2022-2023 $276,245 $35,449 $121,097 $65,924 Change ($) $21,330 ($401) $3,845 ($5,119) Change (%) 8.37% -1.12% 3.28% -7.21% Overtime Budgeted Costs FY 2021-2022 $0 $0 $0 $0 Proposed Costs FY 2022-2023 $0 $145,000 $0 $0 Change ($) $0 $145,000 $0 $0 Change (%) 100.00% Total Budgeted Costs FY 2021-2022 $15,485,487 $1,944,781 $6,841,990 $3,639,232 Total Proposed Costs FY 2022-2023 $16,558,198 $2,238,484 $7,353,054 $3,925,975 Change ($) $1,072,711 $293,703 $511,064 $286,743 Change (%) 6.93% 15.10% 7.47% 7.88% 144 Page | 20 Proposed Costs and Capped Budget Comparison For FY 2021-2022 and FY 2022-2023 Cupertino Los Altos Hills Saratoga Unincorporated Areas Total Budgeted Costs - Excluding Operating Costs of West Valley Substation FY 2021-2022 $15,230,572 $1,944,781 $6,841,990 $3,639,232 Adjusted Total Budgeted Costs - Excluding Operating Costs of West Valley Substation (based on FY2022-2023 Proposed Hours) FY 2021-2022 $15,189,174 $1,913,209 $6,726,261 $3,576,272 Annual Allowable Increase Including PERS 7.57% $1,150,047 $144,858 $509,278 $270,777 FY2022-2023 Capped Costs $16,339,221 $2,058,067 $7,235,539 $3,847,049 FY2022-2023 Operating Costs of West Valley Substation $276,245 $35,449 $121,097 $65,924 Overtime $0 $145,000 $0 $0 Total FY2022-2023 Budget Cap $16,615,466 $2,238,516 $7,356,636 $3,912,973 FY 2022-2023 Proposed Costs $16,558,198 $2,238,484 $7,353,054 $3,925,975 Amount in Excess of of/ (Below Budget Cap) ($57,268) ($32) ($3,582) $13,002 *Allowable Annual Increase is the lesser of percentage of change in Total Compensation or Consumer Price Index - Urban Wage Earners and Clerical Workers (CPI/W) plus 2% plus PERS. For years in which compensation is increased in a multi-year contract, the annual increase to law enforcement service costs shall be limited to the average compensation increase for each year of the contract, not to exceed CPI/W plus 2% for each individual year. 145 Page | 21 Summary of Proposed Hourly Rates General Law Enforcement Services - Deputy Sheriff Supplemental Services - Day - Motorcycle Unit FY 2022-2023 $262.66 FY 2022-2023 $260.02 FY 2021-2022 $243.35 FY 2021-2022 $238.28 Increase $19.31 7.94% Increase $21.74 9.12% Supplemental Services - Day - Patrol Car Supplemental Services - Night - Motorcycle Unit FY 2022-2023 $260.02 FY 2022-2023 $265.22 FY 2021-2022 $239.49 FY 2021-2022 $246.93 Increase $20.53 8.57% Increase $18.29 7.41% Supplemental Services - Swing - Patrol Car Law Enforcement Services - Detective FY 2022-2023 $265.22 FY 2022-2023 $248.66 FY 2021-2022 $243.74 FY 2021-2022 $242.02 Increase $21.48 8.81% Increase $6.64 2.74% Supplemental Services - Night - Patrol Car Supplemental Reserve Services FY 2022-2023 $265.22 FY 2022-2023 $66.00 FY 2021-2022 $246.93 FY 2021-2022 $65.32 Increase $18.29 7.41% Increase $0.68 1.04% Supplemental Services - Traffic Sergeant School Resources Officer FY 2022-2023 $278.87 FY 2022-2023 $215.02 FY 2021-2022 $265.07 FY 2021-2022 $195.70 Increase $13.80 5.21% Increase $19.32 9.87% 146 Page | 22 Contract Cities’ Statistical Data 147 Page | 23 148 Page | 24 149 Page | 25 150 Page | 26 151 Page | 27 Statistical Data – City of Saratoga 152 Page | 28 153 Page | 29 154 Page | 30 Saratoga Residential Burglaries 155 Page | 31 156 Page | 32 157 Page | 33 158 Page | 34 159 CITY OF SARATOGA Memorandum To: Mayor Fitzsimmons & Members of the Saratoga City Council From: Nick Pegueros Date: January 4, 2022 Subject: Item 2.3. 2023-24 Budget Considerations and 3-year Forecast Presentation – Request for Additional Information City staff received a City Councilmember request for additional information on Agenda Item 2.3: 2023- 24 Budget Considerations and 3-year Forecast Presentation. Administrative Services has prepared the following attachments responsive to two of the four requests: 1. 4-year budgeted employee headcount by program (Attachment A) 2. 4-year actual payroll expenditures by program (Attachment B) We will have information fulfilling the remaining two requests included in the attachments for the City Council’s February 10 meeting. 3. Number of City employee promotions and reclassifications for the past four years 4. 4-year actual contract and consulting services 160 City of Saratoga City Manager Department Staffing History Prepared 1/3/23 Summary by Program 2018-19 2019-20 2020-21 2021-22 2022-23 City Clerk 1.55 1.10 1.10 1.10 1.10 City Manager's Office 2.25 2.30 2.30 2.30 2.30 Emergency Prep 0.30 0.25 0.25 0.25 0.25 Public Information Office 1.10 1.59 1.58 1.58 1.58 CMO subtotal 5.20 5.24 5.23 5.23 5.23 Community Engagement - 1.15 1.15 1.15 1.15 Facility Rentals 1.35 2.76 2.42 2.42 2.42 Recreation 3.52 0.05 0.05 0.05 0.05 Teens 0.30 - - - - Community Services subtotal 5.17 3.96 3.62 3.62 3.62 Grand Total 10.37 9.20 8.85 8.85 8.85 161 City of Saratoga Administrative Services Department Staffing History Prepared 1/3/23 Summary by Program 2018-19 2019-20 2020-21 2021-22 2022-23 Dept. Administration 1.20 1.00 1.00 1.10 1.10 Finance 4.50 4.95 4.95 5.25 5.25 Human Resources 1.65 1.65 1.65 1.65 1.65 Information Technology 2.10 2.30 2.30 2.25 2.25 Risk Management 0.30 0.30 0.30 0.30 0.30 Workers' Comp 0.20 0.20 0.20 0.20 0.20 Grand Total 9.95 10.40 10.40 10.75 10.75 Summary by FTE Type 2018-19 2019-20 2020-21 2021-22 2022-23 Regular 9.95 10.40 10.40 10.75 10.75 Temporary - - - - - Grand Total 9.95 10.40 10.40 10.75 10.75 162 City of Saratoga Community Development Department Staffing History Prepared 1/3/23 Summary by Program 2018-19 2019-20 2020-21 2021-22 2022-23 Advanced Planning 0.80 0.80 0.80 0.80 0.80 Building Inspection 5.50 6.00 6.00 6.00 6.00 Code Compliance 1.55 1.55 1.55 1.55 1.55 Development Services 4.79 4.90 4.65 4.65 4.65 Facilities Maintenance 2.70 2.50 2.50 2.50 2.50 Grand Total 15.34 15.75 15.50 15.50 15.50 Summary by FTE Type 2018-19 2019-20 2020-21 2021-22 2022-23 Regular 14.70 15.50 15.50 15.50 15.50 Temporary 0.64 0.25 - - - Grand Total 15.34 15.75 15.50 15.50 15.50 163 City of Saratoga Public Works Department Staffing History Prepared 1/3/23 Summary by Program 2018-19 2019-20 2020-21 2021-22 2022-23 Development Engineering 1.45 1.25 0.95 0.40 0.40 Environmental Services 1.05 1.25 1.70 1.70 1.70 General Engineering 4.06 4.35 4.20 4.75 5.00 Parks 8.40 8.40 8.40 8.40 8.40 Streets 7.84 8.04 8.04 8.04 7.79 Vehicle & Equipment Maint 0.70 0.70 0.70 0.70 0.70 Grand Total 23.50 23.99 23.99 23.99 23.99 Summary by FTE Type 2018-19 2019-20 2020-21 2021-22 2022-23 Regular 21.65 23.50 23.50 23.50 23.50 Temporary 1.85 0.49 0.49 0.49 0.49 Grand Total 23.50 23.99 23.99 23.99 23.99 164 City of Saratoga General Fund Salaries by Program: 2018-19 to 2021-22 Actuals Prepared January 4, 2023 Program 2018-19 Actuals 2019-20 Actuals 2020-21 Actuals 2021-22 Actuals City Council 15,000 15,000 13,725 15,002 Commissions 12,600 12,450 11,400 11,700 City Manager's Office 480,409 450,790 484,724 474,051 City Clerk 142,287 140,453 165,304 211,179 Public Information Office 126,983 150,021 185,356 177,915 Finance 512,223 576,393 647,328 663,197 Human Resources 269,554 267,808 304,634 309,770 Administrative Services 207,249 180,588 200,112 275,185 Development Review 558,836 601,889 632,316 608,700 Advanced Planning 112,884 120,723 129,031 137,245 Code Compliance 172,952 178,369 188,762 189,540 Building & Inspection 613,921 728,838 772,286 784,038 General Engineering 439,383 592,261 718,948 714,788 Engineering Development 146,605 140,939 71,776 71,086 Environmental Services 143,307 175,116 251,729 270,535 Streets & Storm Drains 888,628 887,982 825,810 838,368 Parks & Landscape Services 782,354 852,730 872,575 907,217 Recreation 203,655 10,414 12,015 12,903 Teen Services 10,044 - - - Facility Rentals 181,781 186,480 165,450 182,978 Community Engagement 118,464 137,024 158,275 Emergency Preparedness 83,663 52,071 60,074 64,511 CARES Act - 28,608 - 7,636 General Fund Grand Total 6,104,318 6,468,389 6,850,381 7,085,819 2023-01-04 v.1 165 1/3/2023 1 3-year budget forecast 3-year forecast assumptions •Revenues •Property taxes +4.0 to 4.5% annual growth ~$0.55 million/ year •Loss of solid waste franchise ~$1.3 million/ year •Interest earnings fluctuate due to spend down of ARPA •Expenditures •Salaries +3.0 to 5.0%; $0.3 to $0.45 million/ year •Public safety contracts +8.0%; ~$0.7 million / year •Service contracts +6.0 to 10%; ~$0.3 to 0.4 million/ year •Liability and workers' comp premiums +12.5 to 25.0%, $0.2 to $0.3 million per year 1 2 166 1/3/2023 2 Estimated Structural Deficit 2023-24 2023-24 structural deficit (1,280,000) (2,140,000) (2,950,000) (1,710,000) 2023-24 2024-25 2025-26 Prior year surplus/(deficit) - (1,711,000) (3,574,000) Revenues increase/(decrease) Property taxes 576,000 536,000 557,000 Interest earnings 100,000 - (300,000) Other revenues 109,000 111,000 223,000 Franchise fees (650,000) (650,000) 11,000 Expenditures decrease/(increase) Salaries & pension (483,000) (406,000) (317,000) Service contracts (440,000) (388,000) (314,000) Public safety contracts (608,000) (657,000) (710,000) Liability & W.C. insurance (275,000) (207,000) (198,000) Other expenditures (40,000) (202,000) (213,000) Total surplus/(deficit) (1,711,000) (3,574,000) (4,835,000) Estimated structural deficit by end of 2025-26 = $4.8 million One-time solutions: •Reduced/elimination of $1 million additional UAL payment •Use of $1 million working capital reserves Structural Changes: •Service levels discussion 3 4 167 1/3/2023 3 Draft January Budget Discussions Open Session • Labor cost staff report • Preliminary 3-yr forecast (presentation) Closed Session • Negotiations –kickoff January 4th Finance Committee (Draft Agenda) • 2023-24 budget calendar January 10th (tentative)Closed Session • Negotiations - direction January 18th Open Session • Updated 3-year forecast • Financial policy updates • CIP direction • 2023-24 budget balancing measures • Service levels February 10th Retreat 5 168