HomeMy WebLinkAboutStaff Report 140-10TO: HONORABLE CITY COUNCIL 7
FROM: CITY MANAGER DEPARTMENT: HUMAN RESOURCES
DATE: April 12, 2010 CMR:140:10
REPORT TYPE: CONSENT
SUBJECT: Adoption of Two Resolutions to Incorporate a Side .Letter
Agreement with the Palo Alto Peace Officers' Association (PAPOA) to '
Provide a Supplemental Military Leave Benefit to Pay for the
Differential Between Regular Salary and Military Pay to PAPOA
Members Called to Involuntary Active Duty Amending: (1) Section 1601
of the Merit System Rules and Regulations Regarding the 2007-2010
Memorandum of-Agreement and (2) the Compensation Plan for Police
Non-Management Personnel (PAPOA) Adopted by Resolution No. 8779
RECOMMENDATIONS
Staff recommends that the City Council adopt the attached resolutions to incorporate a side
letter agreement with the Palo Alto Peace Officers' Association (PAPOA) to provide a
supplemental military leave benefit for full-time regular police officers who are enlisted in a
Military Reserve Program and are called to involuntary active duty as part of ongoing
military operations prior to June 30, 20 I 0_
BACKGROUND
The City of Palo Alto provides military leave benefits pursuantto the California Military and
Veterans Code, Section 389, et seq_ Pursuant to this Code, the City is required to pay
employees the difference between their military pay and their regular salary for the first 30
calendar days of active military service. Historically, the City has also maintained all
available benefits for reservists on military leave during the first 30 days, although this
additional provision is not required in all cases by state law _ In addition, during past
operations the Council has approved the voluntary continuation of salary and benefits for II
months beyond the 30 day requirement. This extension is expressly authorized by state law.
CMR:140:10 Page 1 of5
Approval of the side letter agreement would allow payment of the salary differential to one
reservist in P APOA who was unexpectedly called to involuntary active duty, but who would
not qualify under existing policies. This agreement is less costly to the City than prior
military leave provisions because it does not include extending benefits or vacation and sick
leave accruals during deployment.
The payment of the salary differential to employees called to active military duty for
extended periods is consistent with the benefits provided by other local agencies. The Police
Chief and Human Resources staff strongly support the continuation of the City's past
practice of providing this salary differential. Particularly during this economic climate, it is
in the interests of the City of Palo Alto and its workforce to ensure that employee reservists
called to duty are able to serve with the knowledge that their families will not lose financial
stability.
DISCUSSION
Currently, the City of Palo Alto has a Supplemental Military Leave Benefit which covers all
employees who enlisted in the Military Reserves prior to February 18,2003 and have been
called to active duty as a result of Operation Iraqi Freedom. This side letter agreement will
allow the City to extend partial benefits of this policy to an employee who is a full-time
police officer and a reservist in the U.S. Coast Guard, and who was unexpectedly deployed to
Iraq on November 9, 2009 for a ten-month tour of duty. This employee does not qualify
under the current policy because his enlistment date was after February 18, 2003. Currently,
this employee is the only active reservist in P APOA. However, it is possible that additional
P APOA members will be eligible for this benefit in the future.
Under the proposed agreement, the salary differential between military pay and the
employee's regular salary may be extended for up to eleven additional months after the first
30 days' pay. Additional pay after the first 30 days is authorized under Military and Veterans
Code Section 395.03. Further, there is a provision in the City's Merit Rules and Regulations
that provides for the City Council to offer supplemental benefits for up to one year "for
reasons the Council, in its sole discretion, considers adequate and in the best interest of the
City." (City of Palo Alto Merit Rules and Regulations, Chapter 8, Section 808.)
Under these provisions, the City is permitted, but not required to offer supplemental pay after
the first 30 days of military deployment. However, the extension of the pay differential for
the full term of deployment has been the long-standing past practice of the City. In 2001,
Council approved extension of salary and benefits to employees called to active duty "in
CMR:140:10 Page 2 of5
recognition of the sacrifices made by employees called to serve their country." (CMR
440:01).
Merit Rule No. 708 simply provides that the City will follow State and Federal law; however,
the past practice of the City has been to provide both extended salary and benefits. Specific
authorization for the extension of pay and benefits has been provided for individual military
operations on a case-by-case basis. In this case, due to the current budget situation, the
Police Chief and P APOA are not requesting an extension of benefits or accruals.
According to State and Federal law, the City must hold the position of any deployed
employee open for a least one year. The police department will backfill this position by
paying overtime when necessary according to past practice when covering other types of
absences such as disability leave, vacation, etc. Backfilling this position will likely result in
minimal overtime costs (approximately SI5,000).
If approved, this side letter agreement would provide the following:
1. The City would pay the differential between an employee's current regular pay (less
accruals) and military pay received by the employee while on active military for nine
months.
2. The City would provide this benefit retroactive to December 1,2009.
RESOURCE IMPACT
There is currently one employee who will benefit from this agreement. At this time, there are
no other PAPOA members enlisted in the Military Reserve programs. This employee is
expected to be on military leave for a total of ten months. As such, under the agreement, the
City will pay the employee nine months of regular salary less nine months of accruals (sick,
vacation and holidays) and less nine months of military pay. Benefits such as health care and
retirement will not be paid.
The City will realize a savings of S79, 062 compared to the budgeted total compensation for
this employee over nine months. Salary will be reduced by military pay ($21,014) and the
employee will not accrue benefits such as vacation, sick time or holidays ($10,723) for nine
months. Finally, the City will not pay for benefits such as medical care, retirement, et al
($47,325). Total savings are calculated as follows:
---....... -~ ---....... -~ ..... -----....... ~.---....... --
CY!R:140:10 Page 3 or5
Total Budgeted Compensation -nine
months
Including salary, accruals, and benefits
Less
Military pay for nine months
Accruals for nine months
Benefits for nine months
Total Reduction (savings)
Net Pay
$ 21,014
10,723
47,325
$ 79,062
$ 120,583
$ 41,521
Savings could potentially be offset by minimal overtime or backfilling the department may be
required to make as a result of the employee's absence (approximately $15,000). Inadditioll,
the savings should be viewed in the context of potentially lower service levels. However, the
Chief of Police states that there will be minimal impact or cost in this case, and those costs
can be recovered by the estimated savings shown above.
POLICY IMPLICATIONS
The Merit Rules require only that the City comply with both State and Federal law, but the
past practice of the City has been to go beyond those minimal requirements. This agreement
provides a continuation of that past practice, but at a reduced financial cost. Any future
expansion of the current policies would require City Council approval.
ENVIRONMENTAL ASSESSMENT
This is not a project under the California Enviromnental Quality Act (CEQA).
ATTACHMENTS
1. Resolution Amending Section 1601 of the Merit System Rules and Regulations
Regarding the 2007-20 I 0 Memorandum of Agreement between the City of Palo Alto
and the Palo Alto Peace Officers' Association, to Provide a Supplemental Military
Leave Benefit for Members Called to Involuntary Active Duty
------........... _ ..... _-----........... -..... --------------
CMR:140:10 Page 4 of5
2. Resolution Amending the 2007-20 I 0 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 2007-20 I 0 Memorandum of Agreement
with the Palo Alto Peace Officers' Association, to Provide a Supplemental Military
Leave Benefit for Members Called to Involuntary Active Duty
3. Side Letter to the 2007-2010 Memorandum of Agreement Between the Palo Alto
Peace Officers' Association and the City of Palo Alto
DEPARTMENT HEAD:
RUSSELL CARLSEN
Director, Human Resources
CITY MANAGER APPROVAL: ---,''-+-~''-'-~"-+---'''F-----
CMR:140:10
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Page 5 of5
**NOT YET APPROVED**
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 Provide a Supplemental Military
Leave Benefit for Members Called to Involuntary
Active Duty
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 I through 50
and Appendix A, for a telm commencing lu1y 1, 2007, and expiring June 30,
2010, as amended to provide a supplemental military leave benefit to pay the
differential between regular salary and military pay to P APOA members called
to involuntary active duty, is hereby incorporated into these Merit System Ru1es
and Regulations by reference as though fully set forth herein. Said
memorandum, as amended, shall apply to all employees in classifications of
police officer trainee, poliee officer, poliee 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 Ru1es and Regulations, this chapter will prevail over such other
p:ovisions as to employees represented by said Palo Alto Peace Officers'
Association."
SECTIO)! 2. The Memorandum of Agreement ("MOA") incorporated into the Merit
System Ru1es 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.
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I **NOT YET APPROVED**
SECTION 4. The Council finds that this is not a project under the California
Environmental Quality Act and, therefore, no environmental impact assessment is necessary.
INTRODUCED k'ID 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 ofHurnan Resources
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**NOT YET APPROVED**
EXHmIT "A"
Side Letter to the 2007-2010 Memorandum of Agreement
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SIDE LETTER TO THE 2007·2010
MEMORANDUM OF AGREEMENT BETWEEN
THE PALO ALTO PEACE OFFICERS' ASSOCIATION
AND
THE CITY OF PALO ALTO
WHEREAS, the Council of tire City of Palo Alto values the contributions made
by its employee reservists called to serve their country; and
WHEREAS, it is in the interests of the City of Palo Alto and its workforce to
ensure that employee reservists called to duty are able to serve with the knowledge that
their families will not lose salary; and
WHEREAS, the City of Palo Alto has authorized supplemental military leave pay
for eleven additional months at the time of prior U.S. engagements; and
NOW, THEREFORE, P APOA and the City agree as follows:
Section 1. The following provision is hereby added to the MOA as Appendix
"A" to read as follows:
Appendix" A"
Supplemental Military Leave Benefit
Effective December 1, 2009, any military reservist who is a member of
PAPOA and is called to involuntary active duty prior to June 30, 2010
shall be eligible to receive a supplemental military leave benefit, paid by
the City after the first 30 days of paid military leave, of the differential
between the employee's current regular pay and all military pay received
by the employee while on active military duty for up to eleven additional
months.
Palo Alto Peace Officers' Association City of Palo Alto,
Subject to City Council Approval
BY:~9Jy By: ________ _
Date: ________ _
Approved as to Form:
By: ________ _
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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
Provide a Supplemental Military Leave Benefit for Members
Called to Involuntary Active Duty
The Council of the City of Palo Alto does RESOLVE as follows:
SECTION 1. 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 provide a supplemental military leave
benefit to pay the differential betwcen regular salary and military pay to P APOA members ealled
to involuntary active duty as set forth in Exhibit "A", attached hereto and incorporated herein by
reference.
SECTIOK 2. The Director of Administrative Services is authorized to
implement the amended compensation plan 'as set forth in Section 1.
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** NOT YET APPROVED **
SECTION 3. The Council finds that this is not a project under the California
Environment~ 1 Quality Act and, therefore, no environmental impact assessment is necessary.
P.'ITRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
City Clerk . Mayor
APPROVED AS TO FORM: APPROVED:
Senior Deputy City Attorney City Manager
Director of Administrative Services
Director of Human Resources
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** NOT YET APPROVED **
EXHIBIT "A"
Side Letter to the 2007-2010 Memorandum of Agreement
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SIDE LETTER TO THE 2007-2010
MEMORANDUM OF AGREEMENT BETWEEN
THE PALO ALTO PEACE OFFICERS' ASSOCIATION
AND
THE CITY OF PALO ALTO
\VHEREAS, the Council of the City of Palo Alto values the contributions made
by its employee reservists called to serve their country; and .
WHEREAS, it is in the interests of the City of Palo Alto and its workforce to
ensure that employee reservists called to duty are able to serve with the knowledge that
their families ""ill not lose salary; and
\VHEREAS, the City of Palo Alto has authorized supplentental military leave pay
for eleven additional months at the time of prior U.S. engagements; and
NOW, THEREFORE, P APOA and the City agree as follows:
Section I. The following provision is hereby added to the MOA as Appendix
"A" to read as follows:
Appendix "A"
Supplemental Military Leave Benefit .
Effective December I, 2009, any military reservist who is a member of
PAPOA and is called to involuntary active duty prior to June 30, 2010
shall be eligible to receive a supplemental military leave benefit, paid by
the City after the first 30 days of paid military leave, of the differential
between the employee's current regular pay and all military pay reeeived
by the employee while on active military duty for up to eleven additional
months.
Palo Alto Peace Officers' Association City of Palo Alto,
Subject to City Council Approval
BY:~\Uy By: _________ _
Date: '-\. -!., 1-0 Date:, _________ _
Approved as to Form:
By: ___ ~. _____ _
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