HomeMy WebLinkAboutStaff Report 117-10FROM:
DATE:
HONORABLE
CITY MANAGER
JANUARY 11, 2010
REPORT TYPE: CONSENT
DEPARTMENT: RESOURCES
CMR:117-10
SUBJECT: Adoption of Two Resolutions to Incorporate a Side Letter with the Palo
Alto Peace Officers' Association (PAPOA) to Allow Deferral of the
FY 09-10 Negotiated Salary Increase and Extend the Term of the
Memorandum of Agreement for One Additional Year and correct the
2007-2010 Salary Schedules: (1) Amending Section 1601 of the Merit
System Rules and Regulations Regarding the 2007-2010 Memorandum of
Agreement (MOA), and (2) Amending the Compensation Plan for Police
Non-Management Personnel (PAPOA) Adopted by Resolution No. 8779
RECOMMENDATION
Staff recolllinends that Council approve two resolutions to implement the attached side letter
agreelnent between the City and the Palo Alto Police Officers' Association (PAPOA) to
allow melnbers to defer the 2009 salary increase for one year and extend the tenn of the
2007 -2010 Memorandum of Agreelnent ("MOA") for one additional year.
BACKGROUND
During final preparation of the FY 09-10 budget, it becalne clear that the City was facing a
General Fund deficit and this prolnpted the City to approach the labor groups, including
P APOA, to discuss cost saving alternatives. One suggestion was to defer the ilnplenlentation
of the 2009 salary increase of six percent negotiated in the current MOA. The P APOA Board
was willing to work with the City and agreed to approach their membership with the salary
deferral proposal if in return, the City agreed to roll over the Melnoranduln of Agreelnent for
one more year, providing a new expiration date of June 30, 2011.
DISCUSSION
The P APOA melnbers were supportive of the proposal to delay the ilnplementation of the
negotiated 2009 salary increase, but they raised some questions which staff has worked to
resolve over the past several nlonths. After thorough review, P APO A informed the City that
eighty of its Inembers have agreed to voluntarily defer their negotiated six percent salary
increase scheduled to take effect July 2009. Their six percent increase will begin to be paid
CMR: 117-10 Page 1 of2
in the pay period including July I, 20 I O. The attached side letter amends the current MOA to
allow for this voluntary salary deferral and extend the tenn of the contract for one additional
year, through June 30, 2011. In addition, the cOlnpensation plan resolution also amends the
2007 -20 I 0 salary schedules to COITect errors that were subsequently discovered in the
schedules attached when the plan was adopted in 2007.
RESOURCE IMPACT
Deferring iInplementation of the July 1, 2009 salaf'j increase that was negotiated in the 2007-
2010 PAPOA MOA results in the following annual salary savings in FY 2010:
General Fund Savings
Base
Regular Salary and Overtilne Expense
Benefits Expense
Total Salary and Benefits Savings
POLICY IMPLICATIONS
This request does not represent any change to existing City policy.
ENVIRONMENTAL REVIEW
Impact to FY 09-10
$644,195
$124,494
$768,689
This is not a project under the California Enviromnental Quality Act (CEQA).
ATTACHMENTS
fo .... Resolution Alnending section 1601 of the Merit Systeln Rules and Regulations
1. Exhibit A: Side Letter to the 2007-2010 Melnorandum of Agreelnent
B. Resolution Alnending PAPOA Compensation Plan
1. Exhibit A: Side Letter to the 2007-2010 Memoranduln of Agreement
2. Exhibit B: 2007-2010 Salary Schedules with Corrected Salaries
PREP ARED BY: Sandra T .R. Blanch, Assistant Director, Human Resources
Marcie Scott, Human Resources Adlninistrator
D PARTMENTHEAD: ~.C-C~ ------~, ----~--------------------------
RUSSELL CARLSEN
I-Iulnan Resources Director
CITY MANAGER APPROVAL: --~~~~--~~-----------------
J
CMR: 117-10 Page 2 of2
**N APP *
Resolution No.
Resolution of the Council of the City of Palo Alto
Amending Section 1601 of the Merit System Rules and
Regulations Regarding the 2007-2010 Memorandum of
Agreement between the City of Palo Alto and the Palo Alto
Peace Officers' Association, to Allow Members to Defer the
2009 Salary Increase for One Year and Extend the Tenn of
the 2007-2010 ~v1enl0randunl of Agreenlent ("~v10A") for
One Additional Year
The Council of the City of Palo Alto does RESOLVE as follows:
SECTION 1.
amended to read as follows:
Section 1601 of the Merit System Rules and Regulations is hereby
"1601. Memorandum of agreement incorporated by reference. That certain
memorandum of agreement by and between the City of Palo Alto and Palo Alto
Peace Officers' Association, consisting of a Preamble and Sections 1 through 50 and
Appendix A, for a term commencing July 1,2007, and expiring June 30, 2010, as
amended to allow deferral of the 2009 salary increase for one year and extend the
tenn through June 30, 2011, is hereby incorporated into these Merit System Rules
and Regulations by reference as though fully set forth herein. Said n1emorandun1, as
amended, shall apply to all employees in classifications of police officer trainee,
police officer, police agent, and police sergeant, except where specifically provided
otherwise herein.
In the case of conflict with this chapter and any other provisions of the Merit System
Rules and Regulations, this chapter will prevail over such other provisions as to
employees represented by said Palo Alto Peace Officers' Association."
SECTION 2. The Memorandum of Agreement ("MOA") incorporated into the Merit
System Rules and Regulations by Section 1 of this Resolution amends the MOA incorporated into
the Merit Rules by Resolution NO.8778 by incorporating the side letter set forth in Exhibit "A,"
attached hereto and incorporated herein by reference.
SECTION 3. The changes provided for in this resolution shall not affect any right
established or accrued, or any offense or act committed, or any penalty of forfeiture incurred, or any
prosecution, suit, or proceeding pending or any judgment rendered prior to the effective date of this
resolution.
/ /
/ /
/ /
100104 sh 8261231
**NOTYET VED**
SECTION 4. The Council finds that this is not a project under the California
Environmental Quality Act and, therefore, no environmental ilnpact assessment is necessary.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST: APPROVED:
City Clerk Mayor
APPROVED AS TO FORM:
City Manager
Senior Deputy City Attorney
Director of Administrative Services
Director of HUlnan Resources
100 I 04 sh 826123 I 2
* YET *
"A"
Side Letter to the 2007-2010 Memorandun1 of Agreelnent
100104 sh 826123 1
SIDE LETTER TO THE 2007-2010
MEMORANDUM OF AGREEMENT BETWEEN
ALTO PEACE OFFICERS' ASSOCIATION
AND
THE CITY OF PALO ALTO
WHEREAS, on Decenlber 17,2007, the City Council approved a Men10randlun
of Agreelnent ("MOA") between the City of Palo Alto ("City") and the Palo Alto Peace
Officers' Association ("PAPOA") (collectively referred to as the "Parties") for the period
of July 1,2007 through June 30, 2010; and
WHEREAS Sections 7(a)(3) and 7(b)(4) of the MOA provide that the City shall
increase the salary range for all classifications in P APOA by a total of six percent (6%)
effective with the pay period including July 1, 2009 (the "Increase"); and
WHEREAS, the City Inade available the pay raise as scheduled; however, facing
a budget deficit of Inore than $10 Inillion for fiscal year 2010, the City approached the
labor groups, including P APOA, on or around May 2009, to discuss alternatives to
implementing the Increase given the City'S budget challenges; and
WHEREAS, to help address the City's budget challenges, P APOA and the City
have agreed to enter into this side letter agreement.
NOW, THEREFORE, PAPOA and the City as follows:
Section 1. Subsection (t) IS hereby added to Section 7 of the MOA (Salary
Provisions) to read as follows:
(1) Voluntary Deferral of Fiscal Year 2009-10 Salary Increase. In recognition of
the City's budget challenges, melnbers of P APOA have voluntarily agreed to defer the
salary increases agreed to in this MOA for the 2009-2010 fiscal year, which are set forth
in Sections 7(a)(3) and 7(b )(4) (the "Increase") and shown on the salary schedule for the
2009-10 fiscal year (Attachment A). P APOA has provided a list to the City of the
individuals who have agreed to defer the Increase. The effective date of the Increase for
the employees who have elected to defer the Increase shall be deferred to the pay period
including July 1,2010.
Section 2. Section 49 of the MOA (Duration) is hereby amended to read as follows:
"Except as expressly and specifically provided otherwise herein for the
retroactive application of a specific provision(s), this Memorandun1 of
Agreement shall become effective upon ratification by both parties hereto
and remain in effect through June 30, 2011."
Palo Alto Peace Officers' Association City of Palo Alto,
'\ -7 '.
By: \.MJ.. .... !',. \"/-.. -;\-.-:...
'0
SUbje~t to c~. OU. ncil .~pproval
By:1) ~----=-=,= -
Date: '\ ._J l -"YV l ' Date: 1/71/(..) 1 /··------
Approved as to Form:
Byal!t£~~o;;-
** **
Resolution No.
Resolution of the Council of the City of Palo Alto
Amending the 2007-2010 Compensation Plan for Police
Non-Management Personnel (Palo Alto Peace Officers'
Association) Adopted by Resolution No. 8779 to
Incorporate a Side Letter Agreement to the 2007-2010
Memorandum of Agreement with the Palo Alto Peace
Officers' Association, to Allow Members to Defer the 2009
Salary Increase for One Year and Extend the Tem1 of the
2007-2010 Memorandum of Agreement ("MOA") for
One Additional Year and Correct the 2007-2010 Salary
Schedules
The Council of the City of Palo Alto does RESOLVE as follows:
Pursuant to the provisions of Section 12 of Article III of the
Charter of the City of Palo Alto, the Compensation Plan for Police Non-Management Personnel,
adopted by Resolution No. 8779, is hereby amended to (a) incorporate a side letter to clarify to
allow melnbers to defer the 2009 salary increase for one year and extend the term of the 2007-
2010 Memoranduln of Agreement ("MOA") for one additional year as set forth in Exhibit "A,"
attached hereto and incorporated herein by reference, and (b) correct the 2007-2010 salary
schedules as set forth in Exhibit "8," attached hereto and incorporated herein by reference.
The Director of Administrative Services is authorized to
implement the amended compensation plan as set forth in Section 1.
II
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100104 sh 8261232
** **
SECTION 3. The Council finds that this is not a project under the California
Environn1ental Quality Act and, therefore, no environn1ental in1pact asseSS111ent is necessary.
INTRODUCED AND PASSED:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
Mayor
APPROVED AS TO FORM: APPROVED:
City Manager
Director of Adlninistrative Services
Director of Human Resources
100104 sh 8261232 2
** **
EXHIBIT" A"
Side Letter to the 2007-2010 Memorandum of Agreelnent
100104 sh 8261232 3
SIDE LETTER TO 2007-2010
MEMORANDUM OF AGREEMENT BETWEEN
THE PALO ALTO PEACE OFFICERS' ASSOCIATION
AND
CITY OF PALO ALTO
WHEREAS, on Decenlber 17, 2007, the City Council approved a Melnorandunl
of Agreelnent ("MOA") between the City of Palo Alto ("City") and the Palo Alto Peace
Officers' Association ("P APOA") (collectively referred to as the "Parties") for the period
of July 1,2007 through June 30, 2010; and
WHEREAS Sections 7(a)(3) and 7(b)( 4) of the MOA provide that the City shall
increase the salary range for all classifications in P APOA by a total of six percent (6%)
effective with the pay period including July 1, 2009 (the "Increase"); and
WHEREAS, the City nlade available the pay raise as scheduled; however, facing
a budget deficit of more than $10 Inillion for fiscal year 2010, the City approached the
labor groups, including PAPOA, on or around May 2009, to discuss alte111atives to
inlplenlenting the Increase given the City's budget challenges; and
WHEREAS, to help address the City's budget challenges, PAPOA and the City
have agreed to enter into this side letter agreelnent.
NOW, THEREFORE, PAPOA and the City agree as follows:
Section 1. Subsection (f) IS hereby added to Section 7 of the MOA (Salary
Provisions) to read as follows:
(f) Voluntary Deferral of Fiscal Year 2009-10 Salary Increase. In recognition of
the City's budget challenges, melnbers of PAPOA have voluntarily agreed to defer the
salary increases agreed to in this MOA for the 2009-2010 fiscal year, which are set forth
in Sections 7(a)(3) and 7(b)(4) (the "Increase") and shown on the salary schedule for the
2009-10 fiscal year (Attachment A). PAPOA has provided a list to the City of the
individuals who have agreed to defer the Increase. The effective date of the Increase for
the el11ployees who have elected to defer the Increase shall be deferred to the pay period
including July 1,2010.
Section 49 of the MOA (Duration) is hereby amended to read as follows:
"Except as expressly and specifically provided otherwise herein for the
retroactive application of a specific provision(s), this Memorandum of
Agreement shall become effective upon ratification by both parties hereto
and remain in effect through June 30, 2011."
Palo Alto Peace Officers' Association
Date: --~rL~~----------__ _
Approved as to Form:
B,f11kt~~~
** **
"B"
Corrected Salary Schedules, 2007-2010
100104 sh 8261232 4
2007 -PAPOA COMPENSATION PLAN
Effective 6/23/2007
Class No Titile
611 Police Agent 48.49
612 Police Agentll nter 50.99
613 Police AgentlAdv 49.4 52.09
614 Police Agent-Bilingual 48.38 50.92
615 Police Agentll nter -Biling 50.87 53.55
616 Police AgentlAdv-Bilingua 51.97 54.70
Trainee-Bilingual 35.15 35.15
lice Officer-Bilingual 44.83 47.18
lice Officer-Inter-Bili 47.06 49.54
lice Trainee 33.49 33.49
lice Officer 42.69 44.94
622 Police Officer-Inter 44.83 47.18
623 Police Officer-Adv 41.36 43.53 45.82 48.22
624 Police Officer-Adv-Biling 43.41 45.70 48.11 50.64
625 Police Off Training-Bilin 40.46 42.59 44.83 47.18
626 Police Sergeant-Bilingual 48.98 51.55 54.27 57.13
627 Police Off Training 38.52 40.55 42.69 44.94
628 Police Sgtllnter-Bilingua 51.54 54.26 57.12 60.12
629 Police SgtlAdv-Bilingual 52.71 55.48 58.41 61.48
631 Police Sergeant 46.65 49.10 51.68 54.40
632 Police Sgtll nter 49.10 51.68 54.40 57.26
633 Police SgtlAdv 50.22 52.86 55.64 58.56
CITY OF PALO ALTO
2008 -PAPOA COMPENSATION PLAN
Effective 6/22/08 -3.5%/5% COLA increase w/market adjustment including 9% PERS reversal per MOA
Class No Title Step 1 Step 2 Step 3 Step 4 Step 5
611 Police Agent $39.32 $41.38 $43.56 $45.85 $48.27
612 Police Agentllnter $41.35 $43.52 $45.81 $48.22 $50.76
613 Police AgentlAdv $42.23 $44.46 $46.80 $49.26 $51.85
620 Police Trainee $36.34 $36.34 $36.34 $36.34 $36.34
621 Police Officer $36.42 $38.34 $40.36 $42.49 $44.73
622 Police Officer-Inter $38.26 $40.27 $42.39 $44.62 $46.96
623 Police Officer-Adv $39.11 $41.17 $43.33 $45.61 $48.00
627 Police Off Training $36.42 $38.34 $40.36 $42.49 $44.73
631 Police Sergeant $44.11 $46.44 $48.87 $51.44 $54.15
632 Police Sgtll nter $46.44 $48.87 $51.44 $54.15 $57.00
633 Police SgtlAdv $47.49 $49.99 $52.62 $55.38 $58.29
Class No Title Step 1 Step 2 Step 3 Step 4 Step 5
614 Police Agent-Bilingual $41.28 $43.46 $45.75 $48.16 $50.69
615 Police Agentllnter-Biling $43.41 $45.69 $48.10 $50.64 $53.30
616 Police AgentlAdv-Bilingua $44.35 $46.67 $49.13 $51.73 $54.45
617 Police Trainee-Bilingual $38.14 $38.14 $38.14 $38.14 $38.14
618 Police Officer-Bilingual $38.26 $40.27 $42.39 $44.62 $46.96
619 Police Officer/Inter $40.17 $42.28 $44.50 $46.84 $49.31
624 Police Officer-Adv-Biling $41.05 $43.21 $45.49 $47.89 $50.41
625 Police Off Training-BHin $38.26 $40.27 $42.39 $44.62 $46.96
626 Police Sergeant-Bilingual $46.32 $48.75 $51.31 $54.02 $56.87
628 Police Sgtllnter-Bilingua $48.74 $51.30 $54.01 $56.86 $59.84
629 Police SgtlAdv-Bilingual $49.84 $52.47 $55.22 $58.14 $61.20
CITY OF IALO
2009 -PAPOA COMPENSATION PLAN
Effective 6/20/2009** -3.5% COLA increase wi 2.5% Market Adjustment
Class No Titile Step 1 Step 2 Step 3 Step 4 Step 5
611 Police Agent 41.72 43.90 46.21 48.64 51.21
612 Police Agentll nter 43.87 46.17 48.60 51.16 53.85
613 Police AgentlAdv 44.80 47.17 49.65 52.25 55.00
614 Police Agent-Bilingual 43.79 46.10 48.53 51.10 53.77
615 Police Agentllnter-Biling 46.05 48.47 51.02 53.72 56.55
616 Police AgentlAdv-Bilingua 47.05 49.51 52.12 54.88 57.77
617 Police Trainee-Bilingual 40.46 40.46 40.46 40.46 40.46
618 Police Officer-Bilingual 40.59 42.72 44.97 47.33 49.82
619 Police Officer-Inter-Bili 43.18 44.85 47.21 49.69 52.32
620 Police Trainee 38.55 38.55 38.55 38.55 38.55
621 Police Officer 38.63 40.67 42.81 45.08 47.46
622 Police Officer-Inter 40.59 42.72 44.97 47.33 49.82
623 Police Officer-Adv 41.49 43.68 45.97 48.39 50.92
624 Police Officer-Adv-Biling 43.55 45.84 48.26 50.81 53.47
625 Police Off Training-Bilin 40.59 42.72 44.97 47.33 49.82
626 Police Sergeant-Bilingual 49.14 51.72 54.44 57.31 60.33
627 Police Off Training 38.63 40.67 42.81 45.08 47.46
628 Police Sgtllnter-Bilingua 51.71 54.43 57.30 60.32 63.48
629 Police SgtlAdv-Bilingual 52.87 55.67 58.58 61.67 64.92
631 Police Sergeant 46.79 49.27 51.84 54.57 57.45
632 Police Sgtll nter 49.27 51.84 54.57 57.45 60.48
633 Police SgU Adv 50.38 53.03 55.82 58.75 61.84
**The effective date of the Increase for the employees who have elected to defer the Increase
shall be deferred to the pay period including July 1, 2010.