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HomeMy WebLinkAboutRESO 9359Resolution No. 9359 Resolution of the Council of the City of Palo Alto Imposing the City's Last, Best, and Final Offer to Utility Management Professional Association Pursuant to Government Code Section 3505.7 RECITALS A. The Utility Management Professional Association (hereinafter "Union") filed to form a bargaining unit pursuant to the City's Merit Rules, which was ruled by an arbitrator to be a unit with the broadest feasible grouping based upon the internal Utilities community of interest; and B. Union was certified by the City of Palo Alto (hereinafter "City") on April 13,2011;and C. Since July 2011, the City and Union have met and engaged in extensive negotiations over the terms of their first Memorandum of Agreement, meeting approximately twenty-nine (29) times in an effort to agree on the terms of an initial Memorandum of Agreement; and D. On April 30, 2013, the Union declared Impasse; and E. The Union did not request Factfinding pursuant to PERB regulations; and, F. Notwithstanding all of the efforts described above the Parties remain at an impasse after the 30-day time period has been exhausted; and G. In such circumstances Government Code section 3505.7 authorizes the City to unilaterally implement its last, best, and final offer; and H. On June 13, 2013 the City gave the Union written notification that the City Council would consider a resolution to unilaterally implement the terms of the City's last, best and final offer at the City Council meeting on June 17, 2013. The Council of the City of Palq Alto RESOLVES as follows: SECTION 1. Implementation of Last, Best, and Final Offer. The implementation of the City's Last, Best, and Final Offer, attached hereto and incorporated herein, is approved. The City Manager is authorized to implement the terms of the Last, Best and Final Offer effective immediately upon adoption of this resolution. 130613 sh 0160031 SECTION 2. Summary of Terms. This section provides a summary of the terms and conditions of employment of members of the Utility Management Professional Association bargaining unit. A more complete description of the terms and conditions of employment for members of the Utility Management Professional Association bargaining unit is contained in the attached Last, Best, and Final Offer. • Compensation. The City Manager will determine each employee's actual salary relative to the control point for a classification. The City Manager has sole discretion to adjust salaries within control point range. Increases within the control point range shall only be awarded to employees who achieved an overall rating of "meets" or "exceeds" expectations on their respective most recent annual performance evaluation who have not been subject to a performance improvement plan or disciplinary action during that evaluation period. Effective the pay period including on the first day of the first pay period following adoption of this resolution, or as soon as administratively possible, control points for all classifications in the Association bargaining unit shall increase three percent. Such increases are in addition to the selective control point adjustments that will take effect on the same date, as reflected on Exhibit A to the City's Last, Best, and Final Offer. Except for employees hired or promoted into the bargaining unit less than one hundred twenty (120) days before this resolution is implemented, each employee's base salary will increase to the control point, provided that if an employee is being compensated above control point at the time a control point increase takes effect, the City Manager has the sole discretion to determine whether the employee's pre-existing above-control point salary level shall be increased. Effective Decem~er 1, 2013 the salary control points set forth in Exhibit B to the City's Last, Best, and Final Offer attached hereto and incorporated herein, for the classifications covered by this agreement will take effect. Also effective December 1, 2013 employees in the bargaining unit before August 3, 2013 will receive a percentage adjustment in base salary equal to the percentage increase, if any, in the control point on that date as set forth in Exhibit B to the City's Last, Best, and Final Offer; provided that if an employee is being compensated above control point at the time a control point increase takes effect, the City Manager has the sole discretion to determine whether the employee's pre-existing above- control point salary level shall be increased. • Performance Appraisal. Performance appraisals will be conducted in accordance with the terms contained in the City's Last, Best,and Final Offer. 130613 sh 0160031 • Overtime and .in-lieu holiday pay. Compensation for overtime work, and scheduled work on paid holidays for certain designated non-exempt employees shall be in conformance with the Merit Rules and Regulations and Policies and Procedures. • Working out of classification pay. If employees are assigned on a temporary basis to perform all significant duties of a higher classification the City Manager may authorize payment within the range of the higher classification for the specified time frame. • Call Out Pay. Exempt utility management and professional classifications will be compensated for Call Out as outlined in the City's Last, Best, and Final Offer, with Management approval (and will not be eligible for overtime pay). • Night Shift Premium. Night shift differential shall be paid at the rate of 5% to regular full-time employees who are regularly assigned to shift work between 6:00 p.m. and 8:00 a.m., or to employees who are temporarily assigned to work a full shift between 6:00 p.m. and 8:00 a.m. • Professional Development. Reimbursement for authorized self-improvement activities may be granted each unit employee up to a maximum of five hundred dollars ($500) per fiscal year. In addition, a departmental training fund of one thousand dollars per employee ($1,000) will be established for subject matter, leadership or other training that the Department Director identifies as a need for employees within that Department. • Active Employee Health Plan. a) Effective on the first of the calendar month falling sixty (60) days after adoption ofthis resolution, City health premium contributions (medical, dental and vision) will be prorated for part-time employees based on the number of hours per week the part-time employee is assigned to work. Until that time, part-time 130613 sh 0160031 employees will remain subject to the practice in effect at adoption of this resolution. Active employees participating in City sponsored health plans will contribute ten percent (10%) of the premium cost for the employee-selected plan, and the City shall contribute ninety percent (90%) with maximum City contribution of ninety percent (90%) of the second highest plan. If a regular employee and/or the employee's dependent(s) are eligible for medical insurance through another employer-sponsored or association medical plan, the employee may opt for alternative medical insurance coverage through the other employer-sponsored or association plan and waives his/her right to the City of Palo Alto's medical insurance coverage for same individuals. Employees waiving City coverage may receive a stipend of $284 per month. • Retiree Health Plan 1. Employees Hired Prior to January 1, 2004 Monthly City-paid premium contributions for a retiree-selected health plan through the CalPERS Health Benefits Program will be made as provided under the Public Employees' Medical and Hospital Care Act. The City's contribution for an employee hired before January 1, 2004 and whose retirement date is on or after May 1, 2011 shall be the same contribution amount it makes from time to time for active City employees. 2. Post -1/1/04 Hires Government Code section 22893 applies to those Unit members hired after January 1, 2004, and provides that, upon retirementfrom the City an employee is eligible for 50% of the specified employer health premium contribution after ten (10) years of service credit, provided at least five ofthose years were performed at the City of Palo Alto. After ten years of service credit, each additional service credit year increases the employer contribution percentage by 5% until, at twenty (20) years' service credit; the employee will be eligible upon retirement for 100% of the specified employer contribution and 90% of the contribution for their dependent coverage. The City of Palo Alto's health . premium contribution for eligible post -1/1/04 hires shall be the minimum contribution set by PERS under section Government Code section 22893. • Dental Plan and Vision Care. The City shall pay covered dental plan charges on behalf of all eligible employees and dependents. The City shall provide vision care coverage for employee and dependents. Coverage is administered by Vision Service Plan (VSP). 130613 sh 0160031 • Additional Insurance Coverage. The City shall provide a basic group term life insurance with Accidental Death, and Dismemberment (AD&D) coverage, supplemental life and AD&D insurance, and long term disability insurance, as provided in the City's Last, Best, and Final Offer. . • Employee Assistance Plan The City shall provide employees access to an Employee Assistance Plan (EAP). • Excess Benefit. The City shall provide an "Excess Benefit" in an amount not to exceed $2,500 per employee per calendar year, through a plan designed to meet the requirements of Section 125 of the Internal Revenue Code. • Pension Benefits Effective the pay period including on the first day of the first pay period following adoption ofthis resolution, or as soon as administratively possible, employees under the 2.7%@55 retirement formula will pay the full eight percent (8%) employee contribution. Effective the pay period including on the first day of the first pay period following adoption of this resolution, or as soon as administratively possible, employees under the 2%@60 retirement formula will pay the full seven percent (7%) employee contribution. Employees hired on or after January 1, 2013 who are "new members" as defined by the California Public Employees' Pension Reform Act (PEPRA), will be subject to the terms of that statute including but not limited to the following provisions: 1. Retirement formula. Effective for employees hired on or after January 1, 2013, the PEPRA requires the City to provide new employees, as defined in that law, the CalPERS retirement formula two percent of final salary at age 62 (2%@62). 2. Employee contributions. Employees under the 2%@62 formula shall pay at least 50 percent of the total normal cost or the same contribution rate as "similarly situated" employees, whichever is higher. 3. Final compensation. Final compensation for employees under the 2%@62 benefit shall be as set forth in PEPRA, including calculation based on the average of three highest consecutive years and a cap on pensionable 130613 sh 0160031 compensation (currently $136,440) based on IRS limits for employers that do not participate in social security. • Sick Leave. Sick leave shall be accrued at the rate of 3.7 hours per bi weekly pay period for those employees working a forty hour duty schedule, provided the employee has been in a pay status for 50 percent or more of a bi weekly pay period. • Management Annual Leave. At the beginning of each calendar year designated exempt employees will be credited with 80 hours of management annual leave. • Vacation. Vacation will be accrued when an employee is in pay status and will be credited on a bi-weekly basis. Total vacation accrual at anyone time may not exceed three times the annual rate of accrual. Employees are eligible to cash out vacation accrual balances in excess of 80 hours pursuant to the provisions contained in the City's Last, Best, and Final Offer. • Bereavement. Leave of absence with pay of three days may be granted an employee by the head of his/her department in the event of death in the employee's immediate family. • Probation. Employees who are not At-Will shall serve an initial probationary period of twelve (12) months. During the probationary period the employee serves at the will of the City and may be terminated for no reason or for any lawful reason, and such termination is not subject to appeal. • At Will Status. Certain unit positions are designated as having {(at-will" employment status. Employees who hold at-will positions shall have no constitutionally protected property or other interest in their employment with the City. Notwithstanding any provision in the Merit System Rules and Regulations or any other City rule, policy or procedure, at-will employees have no right or expectation to continued employment or pre-or post-disciplinary due process and work at the will and 130613 sh 0160031 pleasure of the hiring authority. Work for an at-will employee may be eliminated , and/or the employee may be terminated, or asked to resign, at any time, with or without cause, upon notice to that employee, and the employee may resign at any time upon written notice to the hiring authority. Effective on the date of adoption of this MOA, new employees hired or promoted to the following classifications shall be at-will employees: Assistant director, engineering manager, communications manager, manager electric operations, manager customer service & meter reading, manager utilities marketing services, manager utilities operations WGW, utilities compliance manager. At-will employees will be eligible for, and shall receive, all regular benefits (Le., health insurance, CalPERS contribution to the extent paid by City, etc.) and vacation, sick leave, and management leave as are generally provided to unit employees .. • Reimbursement. The City may provide a basic relocation benefits package for new employees, upon approval of the City Manager or designated subordinate, and in accordance with the City's Relocation Expense Policy. • Meal Allowance Employees assigned to attend night meetings or who travel for business purposes are eligible to receive reimbursement as described by City Policy. • Reduction in Workforce The City will make every effort to provide written notice of its intent to layoff employees in this unit and will meet with Association upon request to discuss alternatives to layoff. SECTION 3. Nothing in this Resolution shall be construed as depriving the Union of its right to meet and confer on matters within the scope of representation, whether or not such matters are included in this Resolution, prior to adoption of the City budget or as otherwise required by law. SECTION 4. If any provision or any part of a provision of this Resolution shall be finally determined to be invalid, illegal, or otherwise unenforceable, such determination shall not impair or otherwise affect the validity, legality, or enforceability of the remaining provision or parts of the provision this Resolution, which shall remain in full force and effect asifthe unenforceable provision or part were deleted. 130613 sh 0160031 SECTION 5. The Council finds that this is not a project under the California Environmental Quality Act and, therefore, no environmental impact assessment is necessary. INTRODUCED AND PASSED: June 24, 2013 AYES: BERMAN, BURT, KLEIN, KNISS, PRICE, SCHMID, SHEPHERD NOES: ABSENT: HOLMAN, SCHARFF ABSTENTIONS: ATTEST: APPROVED: Mayor APPROVED AS TO FORM: il~ Deputy~ 130613 sh 0160031 Exhibit A Annualized Adjusted Control Points of Covered Utilities Classifications (Effective On Date ofImplementation Pursuant To Article XI, Section 1, subsection c) Job Classifications Grade Mid-Point Annual Code Codes (hourly rate) Salary 1003 Assistant Director Utilities ... Engineering 190 $84.05 $174,824.00 65 Assistant Director Utilities -Resource Management 190 $84.05 $174,824.00 6 Assistant Director Utilities -Operations 190 $84.05 $174,824.00 1002 Assistant Director Utilities -Customer Support 230 $75.82 $157,705.60 129 Engineering Manager, Electric 231 $73.98 $153,878.40 120 Engineering Manager, Water, Gas & Wastewater 231 $73.98 $153,878.40 48 Manager, Utilities Telecommunications (Vacant) 250 $66.83 $139,006.40 185 Manager, Electric Operations 270 $69.73 $145,038.40 25 Senior Resource Planner 271 $64.84 $134,867.20 156 Manager, Utilities Operations WGW 290 $68.04 $141,523.20 188 Senior Electric Engineer 291 $65.66 $136,572.80 1011 Utilities Compliance Manager 290 $68.04 $141,523.20 179 Manager, Customer Service and Meter Reading 300 $60.70 $126,256.00 150 Manager, Utilities Marketing Services 300 $60.70 $126,256.00 13 Senior Business Analyst 340 $54.82 $114,025.60 27 Supervising Electrical Project Engineer 341 $59.54 $123,843.20 14 Senior Management Analyst 350 $53.42 $111,113.60 28 Supervising Project Engineer 360 $55.88 $116,230.40 84 Division ManagerlManager of Communications 380 $53.32 $110,905.60 114 Utilities Supervisor 680 $62.98 $130,998.40 76 Administrative Assistant 700 $37.59 $78,187.20 187 Senior Engineer 710 $64.06 $133,265.60 TBD Manager, Utilities Credit & Collection 300 $60.70 $126,256.00 TBD Supervisor, Inspection Services TBD $45.89 $95,465.30 [*Includes three percent increase] City of Palo Alto to UMPAPA Exhibit B AnnualizedAdjusted Control Points of Covered Utilities Classifications Effective December 1, 2013 Classifications Grade Mid-Point* Annual Codes (hourly rate) Salary 1003 Assistant Director Utilities -Engineering 190 $88.07 $183,185.60 65 Assistant Director Utilities -Resource Management 190 $88.07 $183,185.60 6 Assistant Director Utilities -Operations 210 $88.07 $183,185.60 1002 Assistant Director Utilities -Customer Support 230 $79.27 $164,881.60 129 Engineering Manager, Electric 231 $75.59 $157,227.20 120 Engineering Manager, Water, Gas & Wastewater 231 $75.59 $157,227.20 48 Manager, Utilities Telecommunications (Vacant) 250 $66.83 $139,006.40 185 Manager, Electric Operations 270 $74.02 $153,961.60 25 Senior Resource Planner 271 $67.52 $140,441.60 156 Manager, Utilities Operations WGW 290 $73.92 $153,753.60 188 Senior Electrical Engineer 291 $69.16 $143,852.80 1011 Utilities Compliance Manager 290 $73.92 $153,753.60 179 Manager, Customer Service and Meter Reading 300 $60.70 $126,256.00 150 Manager, Utilities Marketing Services 300 $60.70 $126,256.00 13 Senior Business Analyst 340 $54.82 $114,025.60 27 Supervising Electrical Project Engineer 341 $64.27 $133,681.60 14 Senior Management Analyst 350 $53.42 $111,113.60 28 Supervising Project Engineer 360 $59.68 $124,134.40 84 Division Manager/Manager of Communications 380 $57.14 $118,851.20 114 Utilities Supervisor 680 $64.14 $133,411.20 76 Administrative Assistant 700 $37.59 $78,187.20 187 Senior Engineer 710 $64.06 $133,244.80 TBD Manager, Utilities Credit & Collection 300 $60.70 $126,256.00 TBD Supervisor, Inspection Services TBD $45.89 $95,465.30 [*Inc1udes three percent increase]