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HomeMy WebLinkAboutStaff Report 339-10.. ~ TO: HONORABLE CITY COUNCIL FROM: CITY MANAGER DEPARTMENT: HUMAN RESOURCES DATE: AUGUST 2, 2010 CMR: 339:10 REPORT TYPE: ACTION ITEM SUBJECT: Adoption of Two Resolutions: (1) Amending Section 1401 of the Merit System Rules and Regulations to Adopt a New Memorandum of Agreement with SEIU Local 521 for Classified Employees and (2) Adopting a Compensation Plan for SEIU Classified Personnel and Rescinding Resolution Nos. 8657, 8658, 8727, 8800, 8833, 8848, 8908, 8909, 8916, 8951, 8994 and 9047 RECOMMENDATION Staff recommends the following to Council: 1. Adopt the attached resolution amending Section 1401 of the Merit System Rules and Regulations to adopt a new Memorandum of Agreement between the City of Palo Alto and SEIU Local 521 effective July 1, 2010 through June 30, 2011 (12 months). 2. Adopt the attached resolution adopting a new Compensation Plan for SEIU Classified Personnel, effective v.ith the pay period including July 1,2010 through June 30, 2011. BACKGROUND The City's Memorandum of Agreement (MOA) v.ith SEIU Loca1521 expired on June 30, 2009. The parties began negotiations for a successor agreement in May 2009. After five months of bargaining, involving approximately 26 formal meetings, the parties were not able to bridge the significant gap between perspectives, and reached impasse. On October 26, 2009 the City Council implemented terms from the City's Last, Best and Final Offer pursuant to Govermnent Code Section 3505.4 which provides the City with the ability to unilaterally implement tenus following good faith negotiations and impasse. In effect, the Imposed Terms reduced overall compensation for employees in this unit by approximately 3.9%, established a medical cost sharing plan, and created a second tier 2%@60 retirement formula for new hires. CMR: 339:10 Page lof5 Following implementation of the Imposed Terms, the City was required to meet and confer with the Union prior to adoption of the FY 2011 budget. The City Manager met with new SEIU Chapter leadership informally beginning in January 2010 in the spirit of good labor relations and to discuss ways to reach an agreement on a successor MOA. The parties initiated formal negotiations in May 2010. After a focused and productive two months, the parties reached tentative agreement on a successor MOA. The SETU membership ratified the tentative agreement on June 24, 2010 and this agreement is now before Council for adoption. DISCUSSION The City's main focus in the 2009 negotiations, and continuing into 2010 with informal . and formal discussions, was the need for both short and long term structural budget change, particularly in the areas of compensation, pension and medical care costs to the City. The new tentative agreement for a successor MOA consists of the existing terms and conditions of the expired MOA and the terms and conditions implemented by the Council in October 2009. The key elements of the agreement include: I. Term: 1 year, from July 1,2010 through June 30, 2011 2. California Public Employees' Retirement System (CalPERS) Pension Formula Change Pursuant to the Imposed Terms, the second tier retirement formula of 2% @ 60 for all new hires has been adopted by City Council and took effect July 17,2010. Current employees will maintain the 2.7% @ 55 plan. 3. Employee Pension Contribution Change The Imposed Terms required employees to contribute an additional 3.75%, or a total of 5.75% annualized. SEIU agreed to continue the employee contribution to pension costs at 5.75% for the term of this MOA. 4. Healthcwe Cost Containment Effective on January I, 20 II, active employees and employees retiring on or after that date will begin contributing toward their medical premiums. The contribution model' defmed through the negotiation process is an even split of the annual increase in medical premium costs, with a cap for the employee share of 5% premium increase per year. Once the employee contribution reaches 10% of total premium cost, the employee contribution will continue for future years at 10% of total premium cost with the City picking up the remaining 90% of total premium cost. The City will contribute to its retiree insurance trust (the PERS retiree medical trust or its successor) CMR: 339:10 Page 2 of5 an amount not less than the amount of premiums paid by active employees in the bargaining unit in the respective calendar year as a result of the sharing of the first 10% of each premium increase as described above. The imposed terms applied this formula to employees retiring after June 30, 2009. The MOA delays the effective date for retiring employees to January 1, 2011. 5. Tuition Reimbursement The Imposed Terms eliminated this benefit and it remains eliminated in the term of this MOA. 6. Floating Holidays The Imposed Terms eliminated two (2) Floating Holidays permanently. 7. Dismissal of all Unfair Practice Charges and Grievances Related to 2009 Negotiations The parties agree to dismiss all five (5) Unfair Practice Charges pending against each other before the Public Employment Relations Board (PERB) and the Union agrees to withdraw two (2) related grievances. 8. Updated Market Study for several classifications in the Utilities Department The Human Resources Department will conduct an updated market comparability study for the classifications in the Lineperson job family which include: • Lineperson/Cablesplicer Apprentice • Lineperson/Cablesplicer • Lineperson/Cablesplicer Lead • Compliance Tech • Compliance Tech Lead The positions in the Lineperson job family are difficult to hire and retain due to the specialized skills and knowledge required to perform this hazardous Utilities work. While the City has created an apprentice program to develop the skills in-house, the City and the Union both desire to ensure this job family is compensated appropriately. Other changes include minor revisions to Article IV -Stewards and the section on Realignments and Survey Data Base in Article VII Pay Rates and Practices. RESOURCE IMPACT As stated, the new MOA will carry forward terms imposed in the City's last, best and fmal CMR: 339:10 Page 3 of5 offer of October 26, 2009 into FY 2011. In CMR:414:09, staff reported anticipated savings for FY 2010, reflected below, and a new column reflects savings expected in this fiscal year. Annualized 5.75% Employee Contribution to pension: Elimination of Tuition and Training Benefit: Elimination of Two (2) Floating Holidays: Total Savings Medical Cost-Share eff 1/1/2011 2%@60PensionFormulaeff7117/20l0 FY 2010 $1,599,500 $ 607,500 $ 340.000 $ 2,547,000 FY 2011 $1,400,000 $ 582,000 $ 326.000 $2,308,000 $ 173,000 $ 231,000 Pension Cost Containment It should be noted that savings in FY 2010 from employee contributions to pension costs of $1.6 million cited above was based on 617 SEIU FTE. Staff estimates annual, ongoing savings of $1.4 million in FY 2011 based on 582 SEIU FTE paying 5.75% of employee pension contribution. Although implementation of the new two-tier retirement plan is effective July 17, 20 I 0, PERS indicates that the City will not realize savings for FY 2011 until FY 2013. This is a consequence of a two year lag in the PERS allocation of costs. Based on a number of assumptions, staff estimates an eventual credit to Palo Alto of $23 1,000 for FY 2011. Medical Cost Containment The City will also realize savings from the implementation of SEIU contributions to medical premium costs effective January 1, 2011. Staff estimates a 6-month savings of $173,000 in FY 2011. POLICY IMPLICATIONS This recommendation is consistent with existing City policies and City Council direction to implement structural savings to address short-term and long-term budget challenges. ENVIRONMENTAL REVIEW This is not a project under the California Environmental Quality Act. CMR: 339:10 Page 4 of5 ATTACHMENTS . A. Resolution Amending Chapter 14 of the Merit System Rules and Regulations Regarding a Memorandum of Agreement for Represented Classified Employees (SEIU General Unit). B. Resolution Adopting a Compensation Plan for Represented Classified Employees (SEIU General Unit) C. Redlined Memorandum Of Agreement for SEIU General Unit D. Resolution No. 8994 and CMR 414:09 Adoption of Resolution Imposing the City's Last, Best and Final Offer to SEIU Local 521 Pursuant to Government Code Section . 3505.4 PREPARED BY: Sandra T.R. Blanch, Assistant Director, Human Resources JosephSaccio, Deputy Director, Administrative Services Department Marcie G. Scott, Labor Relations Administrator DEPARTMENT HEAD: Russell Carlsen DYrf0rofHurnanR~ . CITYMANAGERAPPROV~~~ W, ~amesKeene City Manager CMR:339:1O Page 5 of5 ATTACHMENT "A" ***NOT YET APPROVED*** RESOLUTION NO. RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING SECTION 1401 OF THE MERIT SYS1EM RULES AND REGULATIONS REGARDING THE MEMORANDUM OF AGREEMENT BETWEhN 11lE CITY OF PALO ALTO At"lD LOCAL 521, SEIU The Council of the City of Palo Alto does RESOLVE as follows: SECTION 1. Section 1401 of the Merit System Rules and Regulations is hereby amended to read as follows: "1401. Memorandum of agreement incorporated by reference. That certain memorandum of agreement by and between the City of Palo Alto and Local 521 , SEIU, consisting of a Preamble and Articles I through XXVII and Appendices A through I, attached thereto and incorporated therein, for a term commencing July I, 20 I 0, and expiring June 30, 20 II, is hereby incorporated into these Merit System Rules and Regulations by reference as though fully set forth herein. Said memorandum, as amended, shall apply to all employees in classifications represented by said Local 521, SEIU, except where specifically provided otherwise herein." In the case of conflict with this chapter and any other provisions ofthe Merit System Rules and Regulations, this chapter will prevail over such other provisions as to employees represented by said Loca1521." SECTION 2. 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. 1/ II /1 /1 II 1/ 100723 'h 82613&7 1 ***NOT YET APPROVED*** SECTION 3. 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: AYES: NOES: ABSENT: ABSTENTIONS: . ATTEST: APPROVED: City Clerk fvIayor APPROVED AS TO FORM: City Manager Senior Asst. City Attorney Director of Administrative Services Director of Human Resources 100726 sI> 8261387 2 . , PREAMBLE- 2010-2011 MEMORANDUM OF AGREEMENT City of Palo Alto and Local 521, SEIU, CTW This Memorandum of Agreement (hereinafter "MOA"is entered into by the City of Palo Alto (hereinafter referred to as the "City") and Local 521 Service Employees International Union, CTW (hereinafter rererred to as the "Union"). For the purposes of this MOA "employee" shall mean an employee assigned to a classification within the SEW General Employee bargaining unit. This MOA is pursuant and subject to Sections 3500-3510 of the Government Code of the State of California and Chapter 12 of the City of Palo Alto Merit Rules and Regulations. ARTICLE I -RECOGNITION Section 1-ReCOgnitiOIL Pursuant to Sections 3500 -3510 of the Government Code of the State of California and Chapter 12 of the City of Palo Alto Merit System Rules and Regulations, the City recognizes the Union as the exclusive represantative of a representation unit consisting of all regular full and part-time employees in the classifications listed in Appendix A attached hereto. This unit shall for purposes of identification be titled the SEW General Employees bargaining unit (hereinafter "General Unit). Section 2 -Protection of Unit. No supervisor will perform the work of an employee in the General Unit provided that there is an employee available who regularly performs such work. This does not preclude a supervisor from performing work of a minor nature or during bona fide emergencies or on a standby status when willing and qualified unit . employees do not live within a reasonable response time of their work 10catioIL Supervisory personnel shall be called out to perform unscheduled work only when SElU General unit employees are unavatlable to perform such work or in cases of bona fide emergencies as defmed in Article vrn, Section 2. In cases of bona fide emergencies, SEIU General unit employees shall be called out to complete the necessary work after the immediate emergency situation has been reasonably contained. ARTICLE n -NO DISCRIMINATION , Section 1 -Discrimination. The City and Union agree that no person employed by or applying for employment hereto shall be discriminated against because of race, religion, creed, political affiliation, color, national origin, ancestry, union activity, age, disability, sexual orientation, or gender. Section 2-Right to Join the Union. The City and the Union agree to protect the rights of all employees to exercise their free choice to join the Union and to abide by the express provisions of applicable State and local laws. ARTICLE Ill-U~lON SEC'GRITY Page lof64 i -i I Section 1-Notice. When a person is hired in any of the covered job classifications, the City shall notify that person that the Union is the recognized bargaining representative for the employee and give the employee a Cll1TIlI1t copy of the Memorandum of Agreement. When a group employee orientation is held for new employees,of the bargaining unit, a union representative may make a presentation to such bargaining unit employees for the purpose of explaining matters of representation. The presentation shall not exceed 15 miniltes. Section 2 -Agency Shop. (a) Every employee in the bargaining unit covered by this'Memorandum of Agreement shall: (1) remain a member in good standing of the Union; or (2) pay to the Union a monthly service fee, to be set by the union in accordance with applicable law, in an amount not to exceed the standard initiation fee, periodic dues, and generai assessments of the organization; or, (3) in the case of an employee who certifies that he/she is a member of a recognized religion, body or sect which has historically held conscientious objection to joining or financially supporting public employee organizations, pay it charity fee, equal to the service fee, to a non-religious, non-labor charitable fimd exempt from taxation under Section 501 (c)(3) of the Internal Revenue Code, chosen from one of the following three charitable organizations agreed to by the City and the Union (or any successor organization(s) agreed to by the City and the Union): United W!ty of California Community Health Charities Envuonmental Federation of California Union members may declare their intention to terminate Union membership by registered letter, return receipt requested, to the Duector of Human Resources and the Union only during the 30-day period between 60 and 90 days before expiration of the MOA. (b) Employees who are newly hired into or who join the bargaining unit shail elect one of the above payment deduction options by completing and submitting the . Employee Election form within thirty (30) calendar days of being hired into a classification covered by this MOA. (c) To qualify for deduction of the Cbarity Fee, the employee must cartify to the Union and City that he/she is a member of a bona fide religious body or sect that has historically held conscientious objection to joining or financially supporting public employee organizations. The employee is required to submit to the City and the Union a notarized letter signed by an official of the bona fide religion, body, or sect certifying that person's membership. Upon request, the City shall provide to the Page 2 0164 ;. Union a report of payments made by employees that qualifY for the Charity Fee option in this subsection. (d) The deductions in this Section shall not apply during any period vvhere an employee is in an unpaid status. (e) Involuntary Service Fee Deduction Process: The City shall deduct a service fee from the salary of each bargaining unit member vvho has not authorized a dues deduction, service fee deduction or charity fee in writing Vlithin the time stated in this Section, above. The Union certifies that it has consulted with knowledgeable legal counsel aDd has thereby determined thet this involuntary service fee geduction process satisfies all constitutional and statutory requirements. (f) Agency shop may be rescinded only in accordance with the provision of state law. (g) Indemnification, Defense and Hold Harmless; Union agrees to indemnifY and hold harmless the City and all officials, employees, and agents acting on its behalf, from any and all claims, actions, damages, costs, or expenses including all sttorney's fees and costs of defense in actions against the City, its officials, employees or agents as a result of actions taken or not taken by the City pursuant to the Agency Shop . Arrangement. (h) Sign-up forms for deduction of union dues, service fees and charity fees shall be provided by the Union and approved by the City. Section 3 -Documentation. The City shall supply the Union with: (a) a monthly electronic file of the names, member/fee payer designation, addresses, classifications, monthly base pay, pay period number, Committee on Political Education (COPE) listed separately and last four digits of the Social Security number of all bargaining unit employees except those who file written notice with the Human Resources Department objecting to release of addresses, in which case information will be transmitted without address; and (b) a list of bargaining unit new hires, terminations and retirements which occurred during the previous rnonth. The Union shall supply the City, and as applicable, the employees, with: (a) documentation required by Government Code Section 3502.5 (f). Section 4 -Payroll Deduction. The City shall deduct Union membership dues, service fees, charity fees, and any other mutually agreed upon payroll deduction, which may Page 3 of64 I include voluntary COPE check-off, from the bi-weekly pay of bargaining unit employees. The clues/fees deduction must be authorized in writing by the employee on an authorization form acceptable to the City and the Union, except as provided in Section2(e), above. The dues deduction form shall include a check box for those employees who wish the Union to receive notification in the event of unsatisfactory work, conduct, or disciplinary action taken pursuant to Article XX. City shall remit the deducted dues or fees to the Union as soon as possible after deduction. Section 5 -Bulletin Boards and Departmental Mail The Union shall have access to. inter" office mail, existing bulletin boards in unit employee work areas, and existing Union-paid telephone answering device for the purpose of posting, transmitting, or distributing notice or announcements including notices of social events, recreational events, Union membership meetings, results of elections and reports of minutes of Union meetings. Any other material must have prior approval of the Human Resources Office. Action on approval will be taken within 24 hours of submission. The Union may send email messages only for the purposes set forth above. The IT Department will maintain the SEW list and keep it current. The Union access to email is bssed on the following conditions: 1) emaHs to the SEIU list VIIill be copied to the Human Res(lUTCe Director at distribution; 2) emalls to the SEW list will only be sent by the SEIU Chapter Chair, Vice Chair, Chief Steward (s) or Secretary, 3) a maximum of 52.emails may be sent per year and a maximum of 12 emalls may be sent by the.SEIU Chapter Secretary. Section 6 -Access to Union Representatives. Representatives of the Unioilare authorized access to City work locations for the purpose of conducting business within the scope of representation, provided that no disruption of work is involved and the business transacted is other than recruiting of members or collecting of dues, and the representative must notilY the Human Resources Department Office prior to entering the work location. Section 7 -Meeting Places. The Union shall have the right to reserve City meeting and conference rooms for use during lunch periods or other non-working hours. Such meeting places will be made available in conformity with City's regulations and subject to the limitations of prior commitment. Section 8 -Notification to the Union. (a) General. The Union shall be informed in advance in writing by Management before any proposed changes not covered by this Memorandum of Agreement are made in benefits, working conditions, or other terms and conditions of employment which require meet and confer or meet and consult process. (b) Change in City's Financial Situation. ShOuld the City's financial situation deteriorate and the possibility of layoffs resnlt, the City Manager will give prior notice to and consult with the Union prior to recommending any layoffs to the City CounciL Page 4of64 : • (c) Vacancies and Temporary PersonneL The City agrees to notify SElD Loca1521 in writing when any irregular, temporary, hourly, provisional, special or extra help employee who consistently performs work typical of the SEIU Local 521 bargaining unit exceeds 1,000 hours of work within a I8-month period. The City agrees to notify SEIU Loca1521 in writing when any position covered by this agreement is left vacant for more than 60 days. Through a separate meet and confer process, the City and Union will develop a way to convert long term, ongoing temporary-hourly positions to regular status. The City and Union will meet and confer regarding wages, benefits and terms and conditions of work. S'!Ction 9 -Union Logo. All materials and documents prodl!ced on Itek and metal plates, by the City print and reproduction shop, shall carry the Union label on the inside of covers or title pages in accordance with customary printing trades practices. Section 10 -Public Notice. The City shall make available to the Union in a timely manner copies of all City Council meeting agendas, minutes and schedule of meetings. These materials may be picked up at the ,City Clerk's Office during business hours . Section 11-Use of Agency Re.ports. Upon request, the City shall provide to the Union reports by department on the use of agency temporaries filling representation unit vacant positions, or doing work similar to that of representation unit clas~ifications. Section 12 -Job Postings. The City shall incorporate the requirements of this Article when publicizing job announcements for classifications covered by this Memorandum of Agreement. Section 13 -Contracting Out. The City through the labor management process will kept the Union advised of the status of the budget process, including any formal budget proposal involving the contracting out of SEIU bargaining unit work traditionally performed by bargaining unit members at least thirty (30) days prior to the release of the City Manager's proposed budget. The City will notify the Union in writing at least ninety (90) days prior to contracting work which has been traditionally performed by bargaining unit members, where such contracting will result in layoff or permanent reduction in hours. Within the ninety (90) day period of contracting out, both parties may offer alternatives to contracting out and meet and confer on the impact of such contracting Qut of a bargaining unit employee work. The City will notify the Union in writing when contracting out work which has been traditionally performed by bargaining unit workers, where such contracting out is expected to replace a laid off bargaIning unit position that has been eliminated within ninety (90) days prior to the date of the planned contract work. When feasible, the City will provide such notice prior to the beginning date of the planned contract work. The City will meet with the Union upon request to discuss altematives. This provision does not apply tc the filling of temporary vacancies of twelve (12) months or less duration. The City will provide the Union with a biannual list by department of all contract workers or vendors who are contracted by the City who perform work for the City. The City will make a reasonable effort to identify the names of the vendors on the list and the nature of the work provided by each vendor. Page 5 of 64 J I I I ~ I .• j ARTICLE IV -STEWARDS Section 1 -Union Officers. The Union agrees to notify the Director of Human Resources of those individuals designated as Union officers and stewards who receive and investigate grievances and represent employees. before Management. Alternates tnay be designated to perform steward functions during the absences or tmavailability of the steward. Section 2 -Number of Stewards. The number of stewards designated by the Union at a given time shall not exceed thirty-five (35). Section 3 -Release Time. It is agreed that, as long as there is prior notice as specified below to the Supervisor with no disruption of work, stewards shall be allowed reasonable release time away from their. work duties, without loss of pay, to represent a unit employee or employees on grievances or tnatters within the scope of representation, including: . (a) A meeting of the steward and an employee, or employees ofiliat unit related to a grievance. (b) A meeting with Management. (c) Investigation and preparation of grievances. Grievances may be transmitted on City time. All steward release time shall be reported on time cards. Section 4 -Advance Notification Before Leaving W Qlk Location. The Union agrees that the steward shall give no less than one (1) full business day advance notification to msther supervisor before leaving the work location, except in those cases involving an unforeseeable circumstance that requires immediate union representation where advance notice cannot be given or when the relevant supervisor otherwise allows less notice. A supervisor may deny such a request for release from duty if the steward is needed to ensure real time delivery of services that the steward provides for the public or intemal City customers and another employeewho nonnally provides suchservices is not available on a straight time basis to relieve the steward, or in a bona fide emergency. If such denial occurs, the union may request the release of another of its designated stewards to perform the representation duties involved. Such request shall be processed in accordance with the terms set forth in this section except that the requirement for a full business day advance notice to the replacement representative's supervisor shall not apply. Nothing herein shall preclude the City from rescheduling a meeting it has scheduled, to facilitate the attendance of a steward who has requested release if, in the City's judgment, such change can be undertaken without undermining the objectives of the meeting. Section 5 -Release Time. Three Union officers, who are City employees, shall be allowed a reasonable amount of release time off for purposes of meeting and conferring Page 60f64 I i I -, ) or llleeting and consulting on matters within the scope of representation. All such time. will be reported on timecards. Section 6 " Designated Union SPace. Union stewards may utilize space in assigned desks for storage of Union materials. In the event stewards are not assigned desks the City will provide locker or other mutually agreeable space for storage of Union materials. Section 7-Union Officers and Release Time. Six union officers, who are City employees shall be allowed' a reasonable amount of release time off for monthly L8.bor/Management Meetings. ARTICLE V -REDUCTION IN FORCE Section 1-Attritj.Q:1l,. In the event of reductions in force, they sh!\ll be accomplished wherever possible through attrition. Section 2 -AdvanceNotice. When the City detennines that layof'fi; are imminent resulting from reduction in force within the representation unit, the City will give the Union such advance notice as is reasonable under the circumstances. The notice will indicate the departments and divisions which will be affected and the circumstances requiring the layoffs. The City will furnish the Union with a current representation unit seniority list with notice oflayoff. Section 3 -Order of Layoff. If the work force is reduced within a department, division, or office for reasons of change in duties or organization, abolition of position, shortage of work or fur\ds, or completion of work,employees with the shortest length of service will be laid off first so long as employees retained are fully qualified, trained, and capable of perfonning remaining work. Length of service for the purpose of this article will be . based on current service hire date of record in a regular classification with no adjustment for leaves of absence. Length of service ties will be determined by lot in a method agreeable to bOth parties. Employees laid off due to the above reasons will be given written notice at least thirty days prior to the reduction in force. A copy of such notice will be given to the Union. Such employees shall be offered priority employment rights to regular positions which are requisitioned and for which the employees are qualified for a period beginning with notification and ending sixty (60) days following the reduction in force. Employees transferred or reclassified under this section will be assigned to the ' step in the new classification salary range closest to the employee's salary range at the time of reclassification. Employees laid off pursuant to this section shall receive the balance of all regular City compensation owed and severance pay equal to one month's salary at the employee's final rate of pay at termination. This does not include any amounts payable under Article V, Section 6, or PERS contribution refunds, if any. Section 4 • SenioritvlBumping Rights. Employees identified for layoff who have seniority (bumping) rights to their current or previously held classifications within the representation unit must declare their intention to exercise these rights in writing and submit to the Human Resources Department within seven (7) working days after written Page 1of64 , I I , l notification oflayoff, otherwise bumping rights will automatically tenninate. Bumping may occur within the representation unit, only to the least senior incumbent of the current or a previously held classification. To bump, the employee must be fully qualified, trained, and perfonn all work in the. For purposes of this section of the Agreement, the tenn "working days" shall mean Mondays through Fridays, exclusive of holidays. Section 5 -Re-Employment List. The names of employees laid off or who through . bumping changed classification in acCordance with the provisions of this Article shall be entered upon a re-employment list in seniority order. The employee with the greatest seniority on the re-employment list, including those who exercised their bumping rights, shall be offered reinstatement first Such notice of reinstatement shall be in writing with a copy to the employee, Union and Chapter Chair. If a laid off employee waives reinstatement or fails to respond within ten (10) working days of receipt of the notice, the employee shall be removed from the reemployment list. The person with the highest seniority including those who exercised their bumping rights on a re-employment list for a particular classification when a vacancy exists in that classification shall be offered the appointment. Names shall be .carried on a re-employment list for a period of two (2) years from the date of separation from City services or change of classification through bumping. Upon re-employment within the two-year period, the employee's hire date of record at the time of layoff will be reinstated. Section 6 -Sick Leave Balances. Employees laid off pursuant to Section 2 who are reinstated to a regular position within sixty (60) days shall retain the sick leave balance they had at the time of layoff, unless they have received a sick leave payoff in accordance with Article XII. Section 7 -Hourly Emuloyees Performing Duties. No representation unit employee will be laid offorremain on a re-employment list when hourly employees are performing substantially all the duties of the classification of the employee receiving a layoff notice or on are-employment list. This provision shall not be applied to hourly positions which have been traditionally used for seasonal and part-time work. ARTICLE VI -PERSONNEL ACTIONS Section 1 -Probation. Each new regular or part-time employee shall serve a probationsry period of six (6) months, (twelve (12) months for the classifications of Public Safety Dispatcher, Chief Public Safety Dispatcher, Animal Control Officer, Communications Tech, Chief Communications Tech, Community Services Officer, Court Liaison Officer, Crime Analyst, Police Records Specialist, Property Evidence Technician, and Veterinarian Tech), commencing with the first day ofhislher employment. The probationary period shall be regarded as a part of the testing process and shall he utilized for closely observing the employee's work, for securing the effective adjustment of a new employee to hislher position, and for rejecting any probationary employee whose performance does not meet the acceptable standards of work. At least one written perfurmance appreis,u will be given each probationa,ry employee on or hefore expiration of the probationary period. Normally, this appraisal will be given at the end of the third Page 8 of 64 i , .j month. In the event of tennination prior to successful completion of the probationary period, such terminated employee shall be given written notice of his/her termination with the reasons for the termination stated therein. The Human Resources Department shall, upon request, afford an interview in a timely fashion to the terminated employee for discussion of the reasons for termination. The employee may, upon request, be accompanied by a Union representative. The interview shall not be deemed a hearing nor shall it obligate the City to reconsider or alter the termination action. The parties agree that probationary employees shall have all rights under this Memorandum of Agreement, including full and complete access to the grievance procedure, save and except for instances of suspension, demotion or termination. Section 2 -Personnel Evalnations. Personnel evaluations will be given to employees as scheduled by Management. Personnel evaluations are not appealable through the grievance procedure but, in the event of disagreement over content, the employee may request a review of the evaluation with the next higher level of Management, in consultation with the Human Resources Department For purposes of this review, the employee may be represented by the Union. Decisions regarding evaluation appeal shall be made in writing within ten (10) working days following the review meeting. Section 3 -Personnel Files. Records of all disciplinary actions shall be kept in the central personnel file. Employees shall be entitled to sign and date all action forms in their personnel files. Employees are entitled to review their personnel files upon written request or to authorize, in writing, review by their Union representatives. An employee or the Union shall be allowed, upon reasonable request, copies of materials in an employee's personnel flle relating to a grievance. Records of disciplinary actions, including references in a performance evaluation, shall be removed from a personnel file upon written request by the employee or in the normal process of file review after a period of three years, or sooner as mutually agreed by Management and the employee. Section 4 -Release ofInformation. The City will only release information to creditors or other persons upon prior identification of the inquirer and acceptable reasons for the inquiry. Information then given from personnel files is limited to verification of employment, length of employment and verification and disclosure of salary range information. Release of more specific information may be authorized by the employee. Section 5 -Promotional Opportunities. (a) Posting. Promotional opportunities for eiessifications within the representation unit will be posted for at least ten (I 0) working days (Monday through Friday) prior to selection. Outside recruitment may be used for promotional openings and may begin at the time of posting, or any time thereafter. If, however, there are three or more qualified internal candidates within the department where the vacancy occurs, and those candidates successfully complete the selection process, outside candidates will not be considered. . Page 9 of 64 l · (b) Internal Candidate Eligibility. All no.n-probatio.nary representatio.n unit emplo.yees are eligible to apply fo.r Po.sted promo.tional o.Pportunities, except that Management may waive this requirement for all pro.batio.nary emplo.yees within the department where the promo.tio.nal o.pportunity occurs. (c) Selection. The selectio.n procedure fo.r each promotio.nal opening will be determined and administered by the Hwnan Resources Department in consultation with the requisitioning department. Selection procedure andjo.b description information wiil be available at the Human Resources Office at the time of posting. Efforts will be made to standardize tests and procedures where standardization is feasible and appropriate. Any tests used shall be reasOItlfbly predictive of success in the classification, and tests not be biased with respect to race, sex, sexual orientation, religion, creed, political affiliation, color, national origin, ancestry, or age. Selection procedures may include any o.r all of the following phases: (1) APJ.?lication. Both inside and o.utside candidates must 90mplete a City o.f Palo. Alto application fo.rm specified by the Hnrilan Resources Department. Applications must be submitted to the Human Resources Office. (2) Screening. Applicatio.ns will be screenea by the Human Resources Department to ascertain whether candidates meet minimum requirements as o.utlined in the job description. Internal candidates deemed no.t to meetminimwn requirements may submit additional qualification info.rmatio.n writing within three working days of no.tification gf requirement deficiency. (3) Performance Testing. Performance tests, such as typing, machinery or vehicle operation, skills demonstration, physical agility, etc., will be qualifYing. Pass-fail points will bc announced in advance for qualifying tests. Ifrequested in writing prior to the test, performance test may be witnessed by Union steward. (4) Written Tests. Written achievement or aptitude tests will be qualifying. Pass-fail points will be announced in advance for qualifying tests. (5) Interviews, Appraisals. Interviews may be conducted individually or by interview boards and will be qualifying. Interview boards shall be composed of qualified and unbiased people. Where interview boards are used, Management will include at least one bargaining unit employee on each board. If individual interview or an interview board is used, a majority of the individuals or board members must recorrunend a candidate in order fo.r the candidate to qualify for appointment. . Performance appraisals written by candidates' supervisors may be used as indicated in the selection procedure. (d) Recorrunended Candidates. Candidates who successfully complete all phases of the selectio.n procedure wili be recorrunended to the IfPpointing authority. Page 10 of64 ; I I i J ! i " .. j I . (e) Seniority. Seniority, for purposes of this Article, will be based on current service hire date of record in a regular classification with no adjustment for leaves of absence. Seniority ties will be determined in favor· of the employee with the lowest employee number last four digits. Exceptions to this subsection may be established by mutual agreement on a departmental or divisional basis. Such exceptions are listed in Appendix G. (f) Appointment. The appointing authority will make appointment~ from among those recommended candidates who are most qualified as determined by objective review of selection procedure results and background rnsterials. Where appointments are made from only internal candidateS who, are equally qualified as detennined by objective review of selection procedure resnlts and past performance, seniority will be the detennining factor in promotional appointments. (g) Violations. Any violation of this Article may be appealed to the Human Resources Director in Step III of the grievance procedure . Section 6 -Rights. Unit employees applying for a vacant equal or lower paying position shall have the same right~ as unit employees applying for a promotion. . Section 7 -AI1I1rentice Positions. (a) The City shall establish apprentice positions wherever feasible. Length of apprenticeship, type of training, and pay levels shall be by mutual agreement. Where possible, apprentice positions will underfill regular positions so that incumbents may autornstically progress to thec1assification for which they are training upon successful completion of apprenticeship. The City will meet and confer with the Union before adding any new apprenticeship programs during the term of this agreement. All apprenticeship programs are listed in Appendix B. Section 8 -Rotation. In assigning employees to regular or special shifts. teansfer, standby, overtime, or vacation selection, ability to perform the work, length of service andlor equitable rotation shall determine the assiguments. In accordallce with this provision, more deflnitive rules rnsy be arranged by mutual agreement of the Union and individ~ City departments. ARTICLE vn -PAY RATES AND PRACTICES Section 1. Salaty. The base salary rates and ranges for job classifications covered by this bargaining unit are as set forth in Appendix A attached herete. Section 2 -Step Increases. Merit advancements from the first salary step to the second salary step shall be granted at six-month intervals and between second and subsequent steps at one-year intervals, if the affected employee has demonstrated continued improvement and efficient and effective service. For the purpose of determining step time requirements, time will commence on the first day of the month coinciding with or following entrance onto a salary step. Step Pagen 0(64 I .~ , increases shall be effective on the first day of the payroll period in which the time requirements have been met. Section 3 -Working Out of Classification. The term "working out of classification" is defined as a Management authorized full-time assigmnent to a budgeted position on a temporary basis wherein all significant duties are performed by an individual holding a classification within a lower Compensation range. Pay for working out of classification shall be as follows: (a) Employees appointed to an "out of classification" will receive acting pay within the range of the higher classification beginning the first day of the assignment and shall be paid for all hours worked in the higher classification provided employee works a . minimum offour (4) hours. Where out-of-class appointments last fur more than 90 days, and whenever feasible, out-of-class appointment will be rotated among qualified interested employees in the work group. Employees will receive 5% premium pay for all assigned out of claSs pay for work within SElU Classifications with the exception of lead assignments where. the out of class pay will result in a 7% premium pay. Out-of-classification provisions do not apply to work assignments performed in cormection with specific predetermined apprenticeship or training programs, or declared conditions of public periJ andlor disaster. Section 4 -Classification Changes. (a) During the course of this agreement, the Union and affected employees shaH be notified in advance of any contemplated changes in classification description, wage . range or steps. Such changes shall be subject to the meet and confer process. Such meet and confer process shall be concluded within no more than thirty (30) days following delivery of the City's notice to the Union. If the Union and the City cannot reach agreement on the appropriate pay level from a job so reclassified, the Union may, within ten (10) City business days following the conclusion of the meet and confer process described 'above by delivery of written notice to the Human Resources Director, refer the dispute over the proposed wage range or steps to arbitration at Step N of the Grievance Procedure set forth at Article XIX of this Memorandum of Agreement. Section 5-ReclassifLCation Requests. (a) An employee or hislher representative may request in writing a re-evaluation of . hislher job based on significant permanent changes in job content or significant discrepancies between job content and classification description. The request must be in writing, contain justification and may be made only on an annual basis during the period of September 10 through October 10. A statement by management that a job reevaluation request will be submitted with the departmental budget does not relieve an employee from the responsibility of submitting his/her own request during this period. The Human Resources Director or his or her designee will initially respond to such requests within ninety (90) calendar days by notice to the employee and the Page 1Z of64 union; however, this timeline may be extended if necessary. Such response shall include any reclassification to a different classification or changes in description that the City believes are warranted and any related changes in applicable pay range or steps. If meetings are held, the employee may request representation. If a reclassification is approved and results in an increase in salary, it shall be retroactive to the date the Employee or Union fIled the request for the reclassification. (b) Iffue employee or Union disagrees with the accuracy of the description of duties resulting from the study conducted pursuant to subsection (a) of this Section or with the wage range or steps assigned by the City as a result of the study, the employee or Union may, within ten (10) City business days of delivery of notice of such determination, appeal such decision under step IV of Article XIX, Grievance Procedure. (c) In a dispute under Section 4(a) or section 5(b) above, the arbitrator shall render his or . . her decision on the appropriate wage range or steps within twenty-one (21) days after the initial hearing datt)o The same time line will be observed for disputes over the accuracy of the revised classification description. The parties will notifY the arbitrator of this deadline at the time ofthc arbitrator's selection. In reaching a decision on wage range and steps under Section 4(a) or 5(b) above, the arbitrator shall base his or her award on the factors traditionally taken into accoont in the establishment of compensation. When deciding a dispute over the accuracy of the revised classification description under section 5(b) above, the arbitrator shall identify the modifications of the pre-existing classification necessary to accurately reflect the permanent changes, if any, that have been implemented. Upon receipt of the arbitrator's award, the City shall implement the revised classification and wage range or steps as provided in the award except as provided under subsection 5( c) ofthis section below. Not withstanding an arbitrator's award pursuant to any appeal process, the City retains the right to forego implementing the changes and the proposed changes shall revert to the status quo as it existed before those changes in duties occurred or were proposed. (d) An employee may submit a request for reclassification for the same classification no more than once every twenty-four (24) months. Section 6 -Advance of Vacation Pay. Vacation pay shall be made available in advance of regular payday, provided that employee requests such advance in writing to the Finance Department at least two weeks prior to hislher vacation date. The employee's supervisor must verify vacation date on the request. Section 7 -Assignment to a Lead Position. All vacancies in lead positions shall be filled in accordance with Article VI, Section 5. The pay range for the lead position shall be seven percent above the pay step of the highest paid employee on the crew. Departmental exceptions for filling lead positions on a rotational basis for training and development purposes may be, arranged by mutual agreement of the Union and individual City departments. Current exceptions are listed in Appendix C. Page 13 of 64 , -.., , , I Section 8 -Realignments and Survey Data Base. (a) Management and the Union have agreed to a compensation survey data base structure which identifies specific benchmark classifications for job families, classifications within the job families of each benchmark classification, survey agencies and survey classification matches. Survey Cities include: San Mateo Santa Clara Alameda Berkeley Daly City Fremont Hayward Mountain View . Redwood City San Jose S, San Francisco , SUIlllyvale , If, in the opinion of the Human Resources Director (or designee), the employer list will not permit the production of a survey report that includes data from at least four (4) employers that employ employees in a classification comparable to the classification surveyed by the City, the Human Resources Director ( or designee) will attempt to ' identifY the other employers in the relevant recruitment area that employ workers in a comparable classification so that data from at least five (5) surveyed employers will be included in the study, if feasible. Such employer may include any public or private employer. The database is intended to provide one source of information concerning how the compensation paid to employees in bargaining unit job classifications compares to that paid by other employers, The City will update the survey datshase and send the Union a copy six weeks before expiration of this agreement. This survey will be considered in connection with special adjustment proposals in successor agreement negotiations. By agreeing to a survey database, neither Union nor Management is under obligation to propose or agree to special adjustments. Within ninety (90) days after the ratification and signing of this Memorandum of Agreement by the Parties hereto, the City will conduct a compensation Survey for the following classifications and report the results to the Union: LinepersonlCablesplicer-Apprentice LinepersonlCablesplicer LinepersonlCablesplicer-Lead Compliance Tech Compliance Tech-Lead ARTICLE VIII -HotJRS OF WORK, OVERTIME, PREMIUM PAY Section 1-Work Week and Work Day. The standard workday for regular employees shall be eight hours to be worked within a maximum of nine hours (five-day work week) or ten hours to be worked within a maximum of eleven (four-day work week) or nine hours to be worked within a maximum of ten for four days with a fifth day of four hours (four and one-half day work week); or, within a fourteen-day period, nine hours to be worked within a maximum of ten hours for one day and eight hours to be worked within a maximum of ten hours for one day, with the work week scheduled to begin so that forty Page 14 of 64 -! hours are worked within each seven days of the fourteen-day period (9/80 plan:, with fo.rty-hour work weeks), or any other schedule that results in a 4O-hour work week, or fits within the parameters of an FLSA 2080 Plan. 'The "9i80 plan" may not be used in any application that requires entitlement to FLSA overtime for working the regular work week. With the exception of the "9/80 plan" as described above and the 4/11 Dispatcher Plan, the standard work week shall be forty hours to be worked within five consecutive days. Additional exceptions to the above are listed in Appendix D. The Union shall be notified of any further exceptions to this section in accordance with Article III, Section 8. The City and the Union agree that the availability of a1ternate!flexiblework schedules is a valuable benefit in that they promote job satisfaction while also reducing traffic congestion and air pollution. During the term of this agreement, employees, subject to the conditions of their job assignment, may propose an alternate work schedule as listed under this Section. Such proposals must be made to the department head through the immediate'supervisor. Serious considerstion will be given to the feasibility and productivity of such proposals, however Management retains the right to determine scheduling needs. Section 2 -Overtime Work. (a) Overtime work for alI unit employees shaII be defIned as any time worked beyond the standard workday or beyond the standard work week. Emergency overtime is defined as unplimned overtime work arising out of situations involving real loss of service or property or personal danger. Emergency overtime does not include: (i) overtime work resulting from personnel replacement for purposes of maintaining scheduled staffing; (ii) overtime work which is planned in advance; (iii) overtime work resulting from being held over for up to four hours to finish work performed during the regular shift. (b) Compansation to employees working overtime will be in the form of additional pay at the rate of one and one-half times. Two times regular rate will be paid for billable customer convenience overtime and emergency overtime as defined in subsection (a) above) the employee's applicable hourly salary with the exception that an employee may request and, upon approval, be granted compensatory time off at the rate of one and one-half hours for each hour of overtime worked, subject to the limitations of applicable state and federal laws. In the event compensatory time off is used as the method of compensating for Overtime, the time off will be taken prior to the end of the quarter following the quarter in which the overtime has been worked. In the event the employee is denied this provision, he/she will be compensated in pay for such time at the appropriate rate specified by these sections. Or at the employee's option, the earned compensatory time will be added to the employee's vacation balance. Page 15 of64 J I. . , ; j (c) All time fot which pay is received shall count as houts actually worked for the computation of regular overtime pay; howevet, non-productive time will not be included in computation of any additional FLSA premiums . (d) When an employee is required to work 6 or more hours of overtime (either emergency or pre-arranged) during the 16 hour petiod immediately preceding the beginning of the employee's regular shift on a workday, the etnployee shall be entitled to an eight­ hour rest period before returning to work. If the rest period overlaps into the second half of the work day, the etnployee may be given (with supervisor approval) the remaining time off (up to a maximum on hours) at the straight time rate of pay. Any portion of the reSt period faUing within the employee's work shift will be consideted as hours worked and compensated at the straight time rate. (e) If non-emergency overtime is canceled without at least 40 clock hours notice, the City shall pay the affected employees two (2) hours' pay at time and one-half. . (i).Employees working overtime who are too fatigued to continue or return. to work, for safety reasons will be released from duty without compensation. Se(j.ion 3 -Work Shifts. All employees shall be assigned to work shifts with scheduled starting and quitting .times. Should conditions necessitate a change in starting and quitting times, the Union will be notified ten (10) working days in advance and p=itted to discuss such changes with the City. This, howevet, shall not preclude the City's right to effect schedule changes dictated by opetational necessity. lbis section does not apply to overtime scheduling. Section 4· City-Paid Meals. (a) Emergency overtime meals. For purposes of this section, emetgency ovettime is defined as unplanned overtime arising out of situations involving real loss of service or property or personal danger. The City agrees to reimburse for meals in the amount of $10 fur breakfast, $15 fur lunch, and $20 for dinner and will provide meals in the following etnergency overtime situations: (1) When an employee is called back and is on duty for a period of three consecutive hours, and thereafter at intervals of five hours, but not more than six hours, until the continuous overtime assignment ends. OR (2) When an etnployee is held over on duty. so that hislhet overtime assignment extends two hours after shift end, and thereafter at .intervals of five hours, but not more than six hours, until the continuous overtime assigument ends. OR, (3) When an employee is called out two hours or more before a regularly scheduled day shift and works the regularly scheduled shift, helshe will be entitled to Page 16 of64 " .1 i breakfast and lunch. Lunches will be consumed on employee's own time. No in­ lieu pay will be nmde for meals not taken. This sub-section does not apply if already covered in Section 4( a)(l) above. (4) When recalled two hours or less after the end of a regular shift, uiUess assigned to standby. (b) Non-emergency overtime meals. The City will provide meals for personnel assigned to non-emergency overtime work where the assignment extends more than two hours after the regular or overtime shift end and at intervals of five hours thereafter. (c) With regard to (a) and (b) above, the City agrees to reimburse fur meals in the amount of$1O for breakfast, $15 for lunch, and $20 for dinner. Where possible, the City will arrange purchase orders at mutually agreeable restaurants. The time necessarily taken to consume a meal provided under this section shall be considered as time worked to a maximum of one hour, ex:cept as noted in (a)9). (d) With regard to (a) and (b) above, in the event an employee is to be provided a meal or meals pursuant to this section and such meal(s) are not provided due to working conditions, the employee shall have the option of receiv'.ng for each meal not provided an additional one hour of overtime compensation in lieu of such meal. This hour will not be considered as time worked or part ofthe rest period, but will be applied to qualifY for the rest period. (e) Emergency overtime meals for Public Safety Dispatchers. The Police Department will provide meals to employees in an emergency overtime situation involving real or potential loss of service or personal danger. (1) When an employee is called back and is on duty for a period of three consecutive oours, and thereafter at intervals of five hours, but not more than six: hours, until the continuous overtime assignment ends. (2) When an employee is held over on duty so that his/her overtime assignment extends two hours after shift end, and thereafter at intervals of five hours, but not more than six hours, until the continuous overtime assignment ends. (3) When an employee is called out two hours or more before a regularly scheduled shift. The employee will be entitled to two meals, the .second meal will be consumed on the employee's own time. No in-lieu pay will be made for meals not taken. (4) When recalled two hours or less after the end of a regular shift, unless assigned to standby. Page 11 of 64 ! i I . ! j I (f) Non-emergency overtime meals for Public Safety Dispatchers. The Police Department will provide meals to employees in non-emergency situations where the assignment extends more than two hours after the regular or overtime shift end and at . intervals of five hours thereafter. If the City is unable to provide a meal, the City agrees to reimburse for meals in the amount oUI 0 for breakfast, $15 for lunch, and $20 for dinner. This policy only applies when an employee is held over, either vohrlitary or mandated, on duty beyond a scheduled regular or overtime shift. Section 5 -Break Periods. All employees shall be granted a break period or coffee break limited to 15 minutes during each four hours of work. Departments may make reasonable rules concerning break period scheduling. Break periods not taken shallbe waived. Section 6-Clean-Up Time. All employees whose work causes their person or clothing to become soiled shall be provided with reasonable time before lunch and at shift end for wash-up purposes. Section 7 -Standby Pay, Call-Out Pay. (a) Standby Compensation. Employees performing standby duty shall be compensated at the daily rates established below: Monday through Friday $50 Saturday, Sunday, Holidays $73 (b) Minimum Call-Out Pay_ Employees not otherwise excluded from receiving overtime pay who are called out to perform work shall be compensated for at least two hours' pay from the time of the call-out for each occurrence at the appropriate overtime rate. The two-hour minimum does not apply to employees called out to work while earning pay for being in a standby status unless called out to perform billable customer convenience work in which case the two-hour minimum will apply. Section 8 -Night Shift Premium. Night shift premium of $1.44 per hour shall be paid to employees for work performed betWeen 6:00 p.m. an4 8:00 am. This premium shall not apply to an employee whose schedule does not qualifY for shift differential who requests an earlier scheduled start time that would otherwise qUalifY the employee for the premium. A minimum of two hours must be worked between 6 p.m. and 8:00 a.m. to qUalifY for the premium. Employees who regularly work night shifts shall receive appropriate night shift premiums, relating to night shift hours worked, in addition to base pay for holidays, sick leave and vacation. Night shift premium does not apply for overtime situations unless overtime is approved to replace an employee who would have . otherwise received a night shift premium. Section 9 -Bilingual Premium. $35 per pay period shall be paid to a bilingual employee whose abilities have been determined by the Human Resource Director as qualifYing to fill positions requiring bilingual speaking andlor writing ability when the employee Page 18 of 64 regularly performs such duties. The Human Resource Director will determine the number, timing, location and duration of the assignments receiving the additional pay provided herein and which languages are needed. Sign language shall be recognized as a bilingual skill under this Article. Disagreements over the desiguation of positions will be referred first to the Labor Management Committee. If a disagreement still exists it will be referred to the Grievance Procedure. Section 10 -Communications Training Officer (CTO) Compensation. Public Safety Dispatchers and Chief PUblic Safety Dispatchers identified by Management to work as a Police Officers Standards and Training (pOST) certified CTO will be oompensated at a premium pay rate of five (5) percent. The premium pay is provided only for tho~e hours spent as a CTO training a probationary dispatcher while on-duty in the Dispatch Center. ARTICLE IX -UNIFORMS AND TOOL ALLOWANCES Section 1 -Uniforms. (a) The City will provide uniforms, coveralls or shop coats on a weekly basis, or as otherwise furnished, for the following jobs andlor classifications and any positions necessary or required as determined by management. Animal Control Officer Assistant Storekeeper Auto Service Mechanic Building Service Person -Lead Building Service Person Cathodic Technician Cement Finisher -Lead Cement Finisher Chemist Commimity Service Officer 0 Electrical Assistant Electrician Apprentice Electrician Lead Engineering Technician Ill-Refuse Equipment Operator Equipment Operator -Lead Facilities Carpenter Facilities Electrician Facilities Maintenance -Lead Facilities Mechanic Facilities Painter Field Serviceperson Gas System ShoplField Repairer Gas System Technician I Gas System Technician II Page 19 of64 i 1 i , Golf Course Equipment Mechanic Golf Course Maintenance Person Heavy Equipment Operator" Lead Heavy Equipment Operator Industrial Waste Inspector Industrial Waste Investigator Instrumentation Electrician Laboratory Technician, Water Quality Control Line Person/Cable Splicer Line Person/Cable Splicer" Lead Mail Services Specialist Maintenance M~~ha:riicMaintenance Mechanic, Water Quality Control Mechanical Unit Repairer, Meter Reader Meter Reader -Lead Mobile Service Technician Motor Equipment Mechanic -Lead Motor Equipment Mechanic Offset Equipment Operator" Lead. Offset Equipment Operator Park Maintenance Assistant· Parking Enforcement Officer Park Maintenance Person Park Crew -Lead Park Maintenance" Lead Park Ranger Parks & Open Space Assistant Police Records Specialist Refuse Disposal Attendant Senior Chemist Senior Industrial Waste Inspector Senior Instrumentation Technician Senior Operator; Water Quality Control Senior Mechanic, Water Quality Control Senior Park Ranger . Sprinkler System Repairer Street Maintenance Assistant Storekeeper Storekeeper-Lead Street Sweeper Operator T raffie Control Maintainer -Lead Traffic Control Maintainer II Traffic Control Maintainer I Tree Trimmer-Line Clearer Tree Maintenance Assistant Tree Trimmer-Line Clearer Assistant . Page 26 of 64 Tree Trimmer-Line Clearer -Lead Tree Maintenance Person Truck Driver Utilities Compliance Technician Utility Field Service Representative Utility InstallerlRepairer Utility InstallerlRepairer Assistant Utility InstailerlRepairer -Lead Utility Locator Water Meter Cross Connection Technician Water System ,Operator -Lead Water System Operator Water System Operator I Water System Operator II Water Quality Control Plant Operator (b) Coveralls will be made available for occasional use as needed to protect clothing for the following classifications and any positions necessary or required as determined by management. Building Inspector Building Inspector Specialist Building Service Person -Lead Cable Splicer Assistant Chief Electric Underground Inspector Electrical Assistant Electrician Facilities MechaniclPainter Heavy Equipment Operator Lineperson/Cable Splicer Park Ranger Seuior Park Ranger Utility Field Service Representative Sprinkler System Repairer Utility Installer Assistant Utility InstallerlRepairer Utility Insta11erlRepairer -Lead (c) Employees required to wear uniforms shall be provided suitable change rooms and lockers where presently provided. (d) Employee clothing seriously damaged or destroyed in conjunction with an industrial injury will be reasonably replaced by the City. Any other claims alleging City liability may be filed with the City Attorney. . Page 21 0(64 L i • -i 1 t (e) Except in the Utilities Division, the City will make available, as an alternative to the shirts currently provided under Section lea), six (6) cotton polo shirts. Employees in the Utilities Division will be provided with six (6) long-sleeve shirts and two polo shirts. Employees will be responsible for laundering the shirtS. Damaged or otherwise unwearable shirts will be returned to the employee's supervisor and replaced by the City. (1) Employees are responsible for laundering Park Ranger and Senior Park Ranger uniforms. ' (g) The City wm meet and confer with the Union regarding any mandated changes to uniforms. Section 2 -1'001 Allowance . (a) Mechanics in Equipment Maintenance, Park Maintenance Lead, Golf Course EqUipment Mechanic, Motorized Equipment Mechanic and Mobile Service Technician shall be paid a tool allowance of $61 0 annually effective July 1, 2005. (b) All tool allowances shall be paid bi-weekly. (c) Parties will meet and confer to determine if additional classifications require tool allowance. Section 3 -Shoe Allowance. (a) Safety Shoes. The City shall reimburse employees 75 % of the cost of job-related safety shoes upon ve;ification of such purchase by the employee. (b) Walking Shoes. The City will reimburse employees 75% of the cost of job-related ' walking shoes for any positions necessary or required as determined by management including Meter Readcr and Meter Reader-Lead. in an amount not to exceed $300.00 per year. A walking shoe is a durable work shoe/boot (non steel-toed), is ankle supporting; oil, gas and slip resistant; waterproof or water resistant; lightweight and durable; and also provides hard surface cushioning. Section 4 -Certifications. The City has proposed to add certain certifications to the list currently covered by this Memorandum of Agreement. '!be City and Union agree that their discussion of this proposal will.likely require additional time and 'analysis beyond what will be otherwise nceded for the parties to reach agreement. Accordingly, the parties agree that the City and Union will continue to meet and confer on this City proposal following ratification and adoption of the MOA.The parties agree to retain the current list of required certifications below and to attempt to address and resolve the issues raised by the City's proposal and endeavor to reach an agreemcnt to the extent possible, within 60 days of the adoption of this contract. Employees who are required to maintain commercial driver's licenses shall have costs for medical examinations paid by: Page 22 of64 -i i I I , I (a) Completing an examination t!i:rough their PEMHCA provider. After benefits have been paid by the PEMHCA provider, upon presentation of proper documentation, the City will reimburse any remaining costs, or . (b) Completing an examination at the Workfurce Medical clinic or other City designated clinic. Employees may use paid leave for attendance.at scheduled medical examinations. Employees shail be permitted to use upio two hours of regular City­ paid time for attendance at biannual medical examinations. The scheduling of such time shall be preauthorized by the employee's supenrisor. , (c) The City will pay special registration and/or certification fees which are required by Management. During the term of this agreement, the City and the Union may, by mutual agreement, review, add or delete classifICations and/or required certifications listed below: Classification Bldg Inspec Spec Cathodic Technician Engineer Professional Equip Maint Serv Pers. Golf Course Maint Pers. Indust. Waate Inspector Inspector Field Services, Utilities InstaIlerlRepairer Series Mech. Unit Repairer Motor Equip Mechanic and Lead . Public Safety Dispatcher Public Safety Dispatcher, Lead ~uirement ICBO Certificate Corrosion Technician by the National Assoc. of Corr/sion Engineers Professional Engineer Cert. (for step E) Forklift Operator Cert. (OSHA-approved) Qualified Applicators' License Backf10w Prevention Device Testor D1 (DOH) D1 (DOH) Welding Certificate EMS,ASE POST Basic Dispatcher POST Fire Academy EMD POST Basic Dispatcher POST Fire Academy POST Supervision EMD Page 13 of 64 l .... i j j i Sr Operator, WQC Surveyor, PW Tree Trimmer/Line Clearer Tree Trimmer/Line Clearer-Lead • Util InstallJRep series Veterinarian Tech Water System Operator I Water System Operator II Senior, Water System Operator WQC Plant Oper I WQC Plant Oper II WQC Plant Oper Trafuee Water Meter Cross­ Connection Tech Grade III Wastewater Treatment Plant Oper·Cert Licensed Land Surveyor Certified Tree Worker and/or Qualified Line Clearancelfree Trimmer Cert (OSHA-approved) Certified Arborist Polyethylene Fusing Cert. Gas Operator Cert. (DOT) Animal Health Tech. Cart. Grade DI -Water Distribution Operator Grade DIl -Water Distribution Operator & Grade TlI -Water Treatment Operator Grade DIlI -Water Distribution Operator & Grade TIll Water Treatment Operator Grade I Water Treatment Operator Cert. Grade II Water Treatment Operator Cert. Grade I Water Treatment Operator Cert. Backflow Prevention Tester Cert Through these negotiations the City and the Union have agreed to add the following required certificates; 1. Inspector Field Services, Utilities Dl (DOH) 2. Insta1lerlRepairer Series, D1 (DOH) 3. Public Safety Dispatcher, EMD 4. Lead Public Safety Dispatcher, EMD (d) The City will pay for the Department of Motor Vehicles (DMV) licensing fees for all employees required to maintain a Commercial Driver's License in accordance with the California Vehicle Code and applicable laws prescribed by the Department of Transportation. Page 24 nf64 (e) PipeliTUl Welding Assignment. The City will provide a 4% increase in base compensation to Utility Installer-Repairer, Installer-Repairer Lead positions that meet DOT certification requirements and are assigned these duties. Utility Installer­ Repalrer and Utility Insta1ler-Repairer Lead positions that fail to maintain current certifications will not receive the 4% increase. Positions assigned these duties and designated by Management to receive this premium will not exceed five (5) Utility Installer/Repairer and InstallerlRepairer Lead. If the certification is required in the job description, certification must be maintained. In accordance with their job . description Maintenance Mechanics that are assigned to Water Gas Wastewater must maintain all required certifications and shall receive 4% increase to their base pay for pipeline welding. (f) Building InspMtor. Upon successful completion of probationary requirements, the City will pay Building Inspectors a one (1) percent ofbase salary one-time payment for a certification above what is required. Employees may request one payment per year to a maximum of two payments in career. Payments will not exceed a maximum of one percent per year or two payments in a career. The Building Inspector Job Description specifies current requirements and the Union and City will agree on a list of appropriate certifications eligible for the premiUllL Premiums will not be paid if certification is not maintained. (g) Water and Wastewater System Operator Certification. Employees classified in the following positions: Water Quality Control Plant Operators I and II, Senior Operator Water Quality Control, Water System Operators I and II, Senior Water Systems Operator, Inspector, Field Services assigned to Utilities and Installer Repaiier Job Series may be eligible to receive a 10/. base pay premium for certifications required by the Department of Health and/or the State Water Resources Control Board. Employees within these job classifications that have successfully completed probationary requirements may request an annual payment of one (1) percent for one (I) certification that is above those listed in theirjob description. An employee who qualifies for this payment shall be paid 1% of the employee's annual base salary once per year. The employee shall be responsible for providing the City with written documentation that the employee has obtained and is maintaining the qualifYing certification on an annual basis. Premiums will not be paid if certification is not maintained. Eligible employees should verify certification will qualifY for the premium before attempting certification. The Union and the City will update the job descriptions to reflect newly required certifications with no further adjustments to base salary. Payments will not exceed a maximum of one percent per year, and will take eff~ in the pay period following the verification of certification. All costs for obtaining certifications above what the job description requires will be the responsibility of the employee and may be paid for by using the City's tuition reimbursement program. (h) In accordance with Cal-OSHA regulations any employee who operates a forklift must have Forklift Operator Certification. Training to be provided by the City. Page 25 of 64 Section 5 -Weather Protection. The City will provide rainy weather foot protection and one sununer hat for the classification of Parking Enforcement Officer. . ARTICLE X -HOLIDAYS Section 1 -Fixed Holidays. Except as otherwise provided, employees within the representation unit shall have the following fixed holidays with pay: January 1 Third Monday in January (Martin Lulher King Day) Third Monday in February Last Monday in May . July 4 First Monday in September Second Monday .in October Veterans' Day, November 11 Thanksgiving Day Day after Thanksgiving December 25 Either December 24 or December 31 (see below) Employees shall be excused with pay for the full work shift on eilher December 24 or December 31, provided, however, that City facilities remain open with reduced staffing levels, that Management retains the right to determine work schedules, and that neither day be considered a holiday for pUlposes of prerruUln pay. If employees are not excused pursuant to lhis provision, one shift of vacation credit will be added to their vacation accrua1. In the event that any of the aforementioned days, except for December 24 or December 31, falls on a Sunday, lhe following Monday shall be considered a holiday. In the event that any of the aforementioned days fails on a Saturday, the preceding Friday shall be considered a holiday. If December 24 and 31 falls on Sunday, then the preceding Friday will be designated for purposes of the holiday. Exceptions to this provision are listed in Appendix E; Section 2 -Pay for Fixed Holidays. (a) All employees shall be paid a full day's pay at their regular straight time base hourly rate for all fixed holidays as defined herein. (b) An employee must be in a pay status on lhe workday preceding the holiday to be eligible to be compensated for a holiday. This subsection does not apply to an employee who is on an unpaid medical leave of absence of less than five (5) days. Section 3 -Work on Fixed Holidays. Any employee required to work on a fixed holiday . shall be paid time and one-halffor such work in addition to his or her regular holiday pay. Work on a fixed holiday beyond the nUlnber of hours in a regular shift shall be compensated at double time and one-half. Employees who work a schedule where a Page 26 0(64 .. , ! regular day off faIls on a holiday will accrue the holiday hours they would have normally worked on that day. Section 4· Variations in Work Week. (a) An employee whose work schedule requires that his or her regular days off be other than Saturday and/or Sunday shall have an additional day off scheduled by the department in the event a fixed holiday falls during his or her regularly scheduled day off. Every attempt will be made to schedule the day on a mutually agreeable basis. If the day carmot be so scheduled, the employee shall be paid for the day at the strlright . time base rate. (b) Fixed holidays which fall during a vacation period or when an employee is absent because of illness shall not be charged aglrinst the employee's vacation or sick leave balance. ' Section 5 . Floating Days Off. Floating days ~ff with pay will be scheduled by Management as follows so as to produce three·day weekends: August2010 April 2011 June 2011 One floating day off One floating day off One floating day off The following conditions will hold: (a) Menagement will designate the scheduling of the plrid day off under this section at least thirty days in advance. (b) If in conformance with this section, Management is unsble to schedule a day off in the month indicated, for reasons of shift operations, work scheduling or any othar reason, the floating holiday will then be added to the employee's vacation accrual on the first pay period of the following month. (c) If an employee fails to take a day off as scheduled by Management under this section, the day off so scheduled will be forfeited. ARTICLE XI-VACATIONS Section 1-Vacation Accruals. Each employee shall be entitled to an armuaI paid vacation, .accrued as follows: (a) First day of continuous service through the last day of the fourth (4th) year: 80 hours vacation per year. Page 27 of 64 ! -, i 1 i (b) First day of the fifth year of continuous service tbroughthe last day of the ninth (9th) year: 120 hours vacation per year. (c) First day of the tenth (IO'h) year of continuous service through the last day of the fourteenth (14th) year: 160 hours vaeation per year. (d) First day of the fifteenth (15tt.:J year of continuous service through the last day of the nineteenth (19th) year: 180 hours vaestion leave per year. (e) Twenty (20) or more years: 200 hours vacation leave per year. Employees may accrue up to three times their annual vacation leave without loss of vacation days. In the event the City is unable to schedule vacation and,' as a result thereof, the employee is subject to loss of accrued vacation, the City shall extend the vacation accrual limit up to one year, in which time the excess vacation must be scheduled and taken. As long as there is no interference with departmental operations, there shall be no unreasonable restriction of increments of use. Employees shall complete six (6) months' continuous service before using accrued vacation leave. Section 2 -Holiday Falling During Vacation. In the event a fixed holiday as defuied in Article X falls within an employee's vaeation period, which would have excused the employee from work (and for which no other compensation is made), an additional workday for such holiday shall be added to the vacation leave. Section 3 -lllness During Vaeation. When an employee becomes ill while on vacation and such illness can be supported by a statement from an accredited physician or the employee is hospitalized for any period, the employee shall have the period of illness charged against sick leave and not against vacation leave. Section 4-Accrued Vaeation Pay for Deceased Employees. An employee who is eligible for vaeation leave and who dies while in the municipal service shall have the amount of any accrued vacation paid to hisJher estate within thifty days. This proration will be computed at hislher last basic rate of pay. Section 5 -Effect of Extended Military Leave. An employea who interrupts service . because of extended military leave shall be compensated for accroeclvacation at the time the leave becomes eff@ctive. Section 6 -Vaeation at Termination. Employees leaving the municipal service with aecrued vacation leave shall be paid the amounts of accrued vaeation to the date of termination. Section 7 -Vacation Cash Out. Orice each calendar year an employee may cash out eight or more hours of vaeation accrual in excess of 80 hours, to a maximwn ofl20 hours, provided that the employee has taken 80 hours of vacation in the previous 12 months. Page Z8 of 64 -J , ARTICLE XII -LEAVE PROVISIONS Section 1 -Sick Leave. (a) The City shall provide each employee with paid sick leave, earned on a daily basis and computed at the rate of96 hours per year, with no limits on amounts that maybe accumulated, except that for employees hired after July 1, 1983, sick leave accrual accumulation shall be limited to 1,000 hours and subsections (a)(J) and (a)(2), shall not apply. Payment for accumulated sick leave at termination shall be made only in the following circumstances: (1) Eligible employees who leave the municipal service or who die while employed and who have fifteen or more years of continuous service shall receive compensation for unused sick leave hours in a sum equal to two and one-half percent of their unused sick leave hours multiplied by their years of continuous service and their base hourly rate of pay at termination. (2) Full sick leave accrual will be paid in the event of termination due to disability. (b) Use of Sick Leave. Sick leave shall be allowed and used in cases of actual personal sickness or disability, medical or dental treatment, or as authorized for personal business. Up to nine days sick leave per year may be used for illness in the immediate family, including registered domestic partner. A new employee may, if necessary, use up to forty-eight (48) hours of sick leave at any time during the flrst six months of employment. Any negative balances generated by such utilization will be charged against future accrual or deducted from flnal paycheck in the event of termination. (c) An employee who has been disabled for 60 consecutive days and who is otherwise eligible both for payment under the long-term disability group insurance coverage and accrued sick leave benefits may, at hislher option, choose either to receive the ' long term disability benefits or to utilize the remainder ofhislher aCcrued sick leave prior to applying for long-term disability benefits. (d) Sick leave will not be granted for illness occUriing during any leave of absence unless the employee can demonstrate that it was necessary to come Under the care of a doctor while on such other leave of absence. (e) Return to Work With Limited Duty. Upon approval of department management and the City Risk Manager, an employee may return to work for doctor-approved limited duty. Approval for return to work shall be based upon department ability to provide work' consistent with mediea1 limitations, the location of the work assignment, and the length oftime of the limitations. The City doctor may be cotlsulted in determining work limitations. Page190fM "~OJ Section 2 -Bereavement Leave. Leave of absence with pay of three days shall be granted an employee by the head of his or her department in the event of death in the employee's immediate family, which is defined for the purposes of this section as wife, husband, Bon, step-son, son-in-law, daughter, step-daughter, daughter-in-law, mother, step-mother, mother-in-law, father, step-father, father-in-law, brother, brother-in-law, step-brother, sister, step-sister, sister in-law, grandmother, grandmother-in-Iaw, grandfather, grandfather-in-law, grandchildren, aunt, uncle, niece, nephew, registered domestic partner, or a close relative residing in the household of the employee. Such leave shall be at full pay and shall not be charged against the employee's accrued vacation or sick leave. Request for leave with pay in excess of three (3) days shall be subject to the written approval of the City Manager. Approval of additiOl'Jjl.leave will be based on the circumstances of each request with consideration given to the employee's need for additional time. Section 3 -Military Leave. The provisions of the Military and Veterans' Code of the State of California shall govern the granting of military leaves of absence and the rights of employees returning from such leaves. Consistent with the Military and Ve.terans Code, the City of Palo Alto shall pay employees in SEIU bargaining unit their regular salary, salary differential, and all available benefits for the first thirty days. ' Section 4 -Leave Without Pay. (a) Disability. Leaves of absence without pay may be granted in cases of disability not covered by sickleave. Pregnancy will be considered as any other disability. Leaves of absence for disability are subject to physicians' verification including diagnosis and medical work restriction. , (b) Family Leave. Family leave will be granted in accordance with applicable state andfederallaw. (c) Other Leaves. Leaves of absence without pay may be granted in cases of personal emergency, Union business or when such absences would not be contrary to'the best interest of the City. Non-disability prenatal leave is avallable under this provision, but such leave shall not begin more than six months prenatal nor extend more than six months postpartum. During unpaid leaves of absence for disability or other reasons, the employee may elect to use accrued vacation credits. Requests for leaves without pay shall no(be unreasonably denied. In order to avoid misunderstandings, all leaves without pay must be in writing to be effective. Section 5 -Jury Duty aIld Subpoenas. Employees required to report for jury duty or to answer subpoenas as a witness in behalf of the State of Califomia or any of its agencies shall be granted a leave of absence with pay from their assigned duties until Page 30 of 64 released by'the court, provided the employee remits to the City all fees received from such duties other than mileage 'or subsistence allowances within thirty (30) days from the termination of jury service. When an employee returns to complete a regular shift following time served on jury duty or as a witness, such time falling within the work shift shall be considered as time worked for purposes of shift completion and overtime computation. In determining whether or not an employee shall return to his or her regular shift following performance of the duties, reasonable consideration shall be given to such factors as travel time and a period of rest. When a combination of City work time and jury duty equals 14 or more hours in the 24-hour period inunediately before the' employee's shift starting time, the employee will be allowed a rest period of nine hours. Any portion of the rest period falling within the employee's work shift will be considered as hours worked and compensated at the straight time rate. This provision does not apply to conditions of bona fide emergency. Bona fide emergency conditions are conditions involving real or potential loss of service or property or personal danger. Section 6 -Time Off to Vote. Time off with pay to vote in any general or direct primary election shall be granted as provided in the State of California Elections Code, and notice that an employee desires such time off shall be given in accordance with the provisions of said Code. Section 7 -Disannroval of Leave of Absence. In case of disapproval of extension, revocation or cancellation of an existing leave of absence, notice shall be sent by certified mail, return receipt requested, to the employee stating the date of such action, the reason and a specific date to return to work, which is not less than five working days from date indicated on return receipt. Section 8 • Personal Business Leave Chargeable to Sick Leave. All employees shall be granted up to twenty (20) hours personal business leave per calendar year, chargeable to sick leave. The employee need not disclose the reason for the personal business. The scheduling of such leave is subject to the approval of the appropriate level of Management, and such approval shall not unreasonably be denied. Section 9 -Return to Assignment. The department shall make every effort to ensure that employees resuming work following a leave pursuant to Sections 1-8 shall be returned to the assignment, shift, and/or work location held immediately prior to the leave. If the employee cannot be so assigned, he or she shall, upon request, be granted a meeting with department management to discuss the reasons for the change. Upon request, the employee shall be afforded Union representation at such a meeting. ARTICLE xm -WORKERS' COMPENSATION INSURANCE Section 1 c Industrial TemporaryDisability. (a) While temporarily disabled, employees shall be entitled to use accrued sick leave for the first three (3) days following the date of injury and thereafter shall be paid full base salary for a period of not to exceed fifty-seven (57) calendar days, unless Page 31 of64 hospitalized, in which case employees shall be paid full base salary'for a period not to exceed sixty (60) days from date of injury. (b) For any temporary disability continuing beyond the time limits set forth in (a) above, employees shall be paid two-thirds (66 2/3%) of their full base salary at the time of injury for the duration of such temporary disability in confonnance with the State law. , (c) During the period of temporary disability, an employee's eligibility for health, dental, life, LTD, or other insured program will continue with City contributions at the same rate as for active employees. In case of Subsection (a) above, the employee will continue to accrue vacation and sick leave benefits. In the case of Subsection (b), sick leave and vacation benefits shall not be accrued. Section 2 -Vocational Rehabilitation Benefits for Permanently Disabled Employees. Vocational Rehabilitation will be made available to employees who have suffered permanent disability as a result of an injury or illness sustained in the course and scope of employment before 111104. For injuries on or after 1/1/04 qualified employees are entitled to supplemental job displacement vouchers in accordance with the California Labor Code, Division 1, Department of Industrial Relations and Division 4, Workers' Compensation and Insurance, the Americans with Disabilities Act (ADA), and the City of Palo Alto's Workers' Compensation Program. ARTICLE XIV -BENEFIT PROGRAMS Section 1 -Health Plan (a) Active Employees 1. The City will pay up to the monthly medical premium for the 2nd most expensive plan among the existing array of plans, except that for increases that go into effect after January 31, 2010 the City and participating employees will share equally the first ten percent (10%) of each premium increase that occurs for the plan in which the employee is enrolled at their respective level of enrollment (i.e. one party, two ' party, family). If a given increase exceeds ten percent (10%), the balance of that increase will be paid by the City. If sufficient increases occur that the employee portion of the premium for the plan in which he or she is enrolled equals ten percent (10"10) of the total premium at the employee's level of enrollment, the employee's share of further premium increases shall be ten percent (l0%) and the City'sshare shall be ninety percent (90%). City medical premium contributions will be prorated for part-time employees hired 0T newly assigned to a part-time work schedule on or after January 1,2010 based on the number of hours per week the part·time einployee is assigned to work. IfPERS changes the plans it offers, the City and the Union will meet and confer over the City continuing to provide an equivalent benefit at an equivalent cost. Page 32 of 64 J Effective February 1,2010, with premium increases that go into efrect after January 31, 2010 the City shall contribute to its retiree insurance trust (the PERS retiree medical trust or its successor) an amount not less than the amount of premiums paid by active employees in the bargaining unit in the respective calendar year as a result of the sharing of the first 10% of each premium increase as provided above in this paragraph I. The City shall make one contribution in the fiscal year to cover the entire amount payable to the trust under this paragraph as of the preceding December 31. 2. Through December 31, 2009, the City will reimburse employees on PERS Care, Who switch to PERS Choice during the 2006 open enrollment period and remain in PERS Choice for maximum calendar year co-payments for unreimbursed costs incurred due to the difference between the PERS Care maximum calendar year copayment responsibility and the PERS Choice maximum calendar year copayment responsibility. The total payments per employee will not exceed $1000.00 annually unless employee has a one dependent/family coverage in which case annual payment will not exceed $2000.00. The City has agreed to provide an annual amount Of $50,000.00 to address these costs. Iftotalclaims for reimbursement exceed available funds, the City will use any unused tuition reimbursement funds budgeted for SEIU for these purposes. Any money left from each year will carry over to subsequent years of this contract. 3. The City agrees to offer a program to active SEIU employees enrolled in PERSCare as of9/1/06 who elect the PERS Choice health plan in which the City will reimburse the employee and/or dependents for any covered medical expense which exceeds the $2 million Lifutime Maximum Benefit. (b) Health Plan Coverage/or Future Retirees Hired Be/ore January 1, Z005. 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. Effective 111107 the City's monthly employer contribution for each retiree shall be the amount necessary to pay for the cost of his or her enrollment, in a health benefits plan up to the monthly premium for the 2nd most expensive plan offered to the SEIU employee (among the existing array of plans). However, the City contribution for an employee hired before January 1, 2005 who retires on or after January I, 2010 shall be the same contribution amount it makes from time to time for active City employees, except that employees retiring after January 31, 2010 but on or before December 31, 2010 shall not be required to pay any premium increase that first takes effect after January 31, 2010. For 2010, the contribution for dependents is 85% (90% in 2011) of difference between the applicable "Employee and One Dependent" or "Family" maximum employer contribution for Active SEIU employees and the maximum monthly employer contribution for "Employee Only" coverage. This Contribution for dependants will increase annually by 5% of the difference between the single party Page 33 of 64 , i 1 premium and the two or family member premium, until such time as the amounts are equal. (c) PERS -Health Benefit Vesting For Future Retirees Effective January 1,2005. The CalPERS vesting schedule set forth in Government Code section 22893 will apply to all SEIV employees hired on or after January 1, 2005. Under this law, an employee is eligible for 50% of the specified employer health premium contribution after ten years of service credit, provided at least five of those years were performed at the City of Palo Alto. After ten years of service credit, each additional year of service credit will increase the employer contribution percentage by 5% until, at 20 years' service credit, the employee wJl be eligible upon retirement for 100% of the specified employer contribution. However, the maximum contribution for family members will be 90% of the specified employer contribution. The City of Palo Alto's health premium contribution will be the minimum contribution set by CalPERS under section 22893 based on a weighted average of available health plan premiums. (d) Coverage Jor Domestic Partners. Domestic Partnership Registered with the California Secretary oJState. -Employees may add their domestic partner as a dependent to their elected health plan coverage if the domestic partnership is registered with the Secretary of State. Domestic Partnership Not Registered with the California Secretary oJState. Domestic partners who meet the requirements of the City of Palo Alto Declaration of Domestic Partnership, and are registered with the Human Resources Department, will be eligible for reimbursement of the actual monthly premium cost of an individual health plan, not to exceed the maximum monthly City employer contribution for one­ . party coverage under the CalPERS Health Benefits Program for SEIU members. Evidence. of premium payment will be required with request for reimbursement. (e) At City option during the life of this agreement and if otherwise available, the City may offer an incentive payment in lieu of City-paid dependent or family medical coverage for those employees who voluntarily decline dependent coverage. (f) Alternative Medical Benefit Program. If a regular employee and/or the employee's dependent(s) are eligible for medical insurance through any other employer-sponsored or aSsociation-sponsored group medical plan, the employee may elect that alternative medical insurance coverage through the other employer-sponsored or association plan and waives hislher right to the City of Palo Alto's medical plan insurance coverage for same individuals. Employees electing alternative coverage and waiving City coverage will receive cash payments equal to approximately half of the "average monthly premiums" for their medical insurance coverage. "Averaged monthly premiums" are the average of the Kaiser HMO, Blue Shield HMO and PERS Choice PPO premiums of the employee's City medical coverage available through the CalPERS Health Benefits Program. Page 34 of64 l J 1 --j 1 The rates for 2011 are as follows: One Party: $301 Two Party: $603 Family: $783 (g) If the State of California or federal government requires the City to participate and contribute toward coverage under any medical pIan outside ofPEMHCA, the City's totalliabiHty for enrolled employees and retirees and their eligible fiunily members shall not exceed what the City would have paid toward PEMHCA coverage in the absence of such state or federal plan. The City will meet and confer with the Union over the impact of such change on matters within the scope of representation before implementing any change. Section 2-Derrtal Plan. (a) The City shall continue to provide a self-funded dental program for the benefit of City employees and their eligible dependents. The City shall pay 100% ofllie required premiums fur the program, except that benefits for regular part-time employees will be prorated as follows: Employees hired after January 1,2005, who will work less than full time, wilL receive prorated premium costs for dental benefits in accordance with hislher percentage of a full-time work schedule. Part-time employees currently receiving full benefits will not be impacted. (b) The City's Dental Plan provides the following: • Maximum Benefits per Calendar Year $2,000 per person. (c) Effective July 1,2001, dental implants in conjunction with one or more missing natoral teeth, and removal of implants will be covered as a Major Dental Service at 50% usual, customary and reasonable (UCR). (d) Effective 111/07 the City will add composite (tooth colored) fillings in dental plan posterior teeth. (e) Effective 1/1107 the City will pay up to $2000.00 for Orthodontia coverage. Section 3-Vision Care. The City shall continue to provide a self-funded vision care program for the benefit of City employees and their dependents. The City shall pay 100% of the required premiums for the program. The benefits of the vision care program shall continue to be equivalent to $20 Deductible Plan A under the Vision Service Plan. Section 4 -Life Insurance. The City agrees to continue the Basic and Supplemental life insurance plan as currently in effect for the term of this Memorandum of Agreement. Page 35 of 64 I l J J -; Section 5-Long Term Disability Insurance. The City shall continue the long term disability insurance plan currently in effect for the term of this Memorandum of Agreement. For Plan A, the benefit is 66 and 2/3% of pre-disability earnings to the maximum benefit level of $4000.00 per month. Employee coverage is su~ect to' a voluntary payroll deduction of the insurance premium applicable to the first $6,000 of monthly salary, less a credit of$11.17 per month to be paid by the City. For Plan B, the benefit is 60% of pre-disability earnings up to the maximum benefit level of $1800 per month. Employee coverage is su~ect to a voluntary payroll deduction of the insurance premium applicable to the first $2000 of monthly salary for Plan B. The City will pay premimns in excess thereof. The City will pay up to $17.50 per month toward long term disability insurance premiums for those employees without eligible dependents covered under the health insurance provisions. Section 6 -Effective Date of Coverage for New Employees. For newly-hired regular employees, elected coverage will begin on the first day of the month following date of hire. Section 7 -Dual Coverage. When a City employee is married to another City employee each shall be considered as an employee for purposes of health and dental coverage, provided however that neither shall be covered as a dependent of the other, and dependent children, if any, shall be covered by only one spouse. Section 8 -Deferred Compensation. The City shall continue to make available a Section 457 Deferred Compensation Plan to SEID employees and will insure reasonable access to Deferred Compensation representatives for all interested employees. Section 9-Dependent Care Assistance Program. The City shall contin1:!c to provide a Dependent Care Assistance Program (DCAP) for employees that complies with Section 125 and 129 of the Intemal Revenue Code. Section 10 -Training Programs. (a). Employees assigned by the City to attend meetings, workshops, or conventions of their professional or technical associations shall have their dues and reasonable expenses paid by departmental funds and shall be allowed to attend such workshops, meetings, andconventipns on paid City time . . (b) Health club/gym membership reimbursement of these expenses is taxable to the employee. (c) City will reimburse for travel, meals and lodging while away from home attending an educational conference that the supervisor authorizes as being job related or which will improve an employee's skills. Per City Policy and Procedure 1-02, the Pre­ Travel Authorization Form should indicate expenses that will be paid. Page 36 of 64 ·.J ARTICLE XV -RETIREMENT Section 1 -PERS Continua:tion. The City will continue the present benefits under the Public Employees' Retirement System 2.7% at 55 for employees hired before January I, 2010 or the later effective date of the 2%@60formulafornewhires as described herein. The City shall amend its contract with CalPERS to provide such employees hired on or after the effective date of the CalPERS amendment with the CalPERS retirement formula two percent (2.0%) of final salary at age sixty (60). The City will implement this change on July 17,2010 .. Section 2 -Employee Share. Employees currently pay two percent (2%) and the City pays six percent (6%) of the eight percent (8%) employee contribution toward the 2.7 @ 55 pension fonnula. Effective 'With the pay period including December 1, 2009, employees under the 2.7 at 55 formula will pay an additional six (6%) percent toward 2.7% @ 55 for a total of eight percent (8%) of the PERS employee-share contribution. The City contribution of the PERS employee share will simultaneously change to zero percent (0%). Effective June 30, 2.010, the PERS employee share contribution rate of employees under the 2.7 @ 55 pension formula shall change to five and three qnsrters percent (5.75%) and the City's contribution shall simultaneously change to two and one qnsrter percent (2.25%) of pay. For employees hired on or after January 1, 2010 or such later date as the 2.0% @60 formula is implemented by the City, as provided in section 1 above, employees covered by that formula shall pay five percent (5%) of pay toward the seven percent (7%) employee contribution and the City shall pay two percent (2%). However, ifPERS laws or rules require that the contribution rate of employees toward the respective employee contributions under the 2,0 @ 60 and 2.7 at 55 formulas must be the same, the uniform employee contribution rate shall be six percent (6%) with the City paying the remaining percentage for the applicable formula. Section 3-Conversion for Final Twelye Months Prior to Retirement. Notwithstanding Section 2 above and pursuant to Govermnent Code Section 20615.5, upon filing a notice of retirement, the amount of the City-paid PERS employee contribution will be converted to a salary adjustment of equal amount on a one-time irrevocable basis for the final twelve months immediately prior to retirement. For this final twelve-month period the employee shall pay PERS employee contributions. Upon receiving an employee's notice of retirement tbe City-paid PERS employee· contribution that will be converted to a salary . adjustment of equal amount on a one-time irrevocable basis for the final twelve months immediately before retirement will be the amount of the applicable employee-paid contribution set forth in section 2 of this Article. For this final twelve-month period the retiring employee on the 2.7 at 55 formula shalI pay the full percentage of the applicable PBRS employee contributions (8% for employees on the 2.7 @ 55 formula and 7% for employees on the 2.0% at 60 formula). Section 4 -Utility Rates Discount: Employees who retire and were employed by the City on or before April 1, 1977, .and spouses of deceased employees who were employed by Page 37 of64 the City on or before April 1, 1977, shall continue reductions in utility rates. All retired employees and sponses of deceased employees shall also have residential privileges at City libraries, Tefuse disposal area, golf course and swimming pools. ARTICLE XVI" COMMUTE INCENTIVES AND PARKING Section 1 "Commute Incentive. Eligible employees may voluntarily elect one of the following commute incentives: Civic Center Parking. Employees assigned to Civic Center and adjacent work locations. The City will provide a Civic Center Garage parking permit. New employees hired after April 30, 1994 may initially receive a parking permit for another downtown lot, subject to the availability of space at the Civic Center Garage. Public Transit. The City will provide monthly Commnter Checks worth the value of: $40 for employees traveling two or more zones on Caltrain; $40 for employees using the Durnbarton Express, BART, the ACE train, or a commuter highway vehicle; $35 for employees traveling within one zone on Caltrain; $35 for employees using VTA, and other buses. These cheeks are pretaxed and may be used toward the purchase of transit pass. Carpool .. The City will provide $30 per month (taxable income) to each eligible employee in a carpool with two or more people. Vanpool Program. The City will provide Commuter Checks worth the value up to $60 to each employee voluntarily participating in theVanpool Program. These checks are pre-taxed and maybe used toward payment of the monthly cost of Vanpool Program participation. Employees must fulfill the basic requirements of the Employee Commute Alternatives Program to qualify. Bicycle. The City will provide $20 per month (taxable income) to eligible employees who ride a bicycle to work. Walk. The City will provide $20 per month (taxable income) to eligible employees who walk to work. Section 2 -Parking Lot Security -Municipal Service Center. The City will provide fenced and locked parking facilities for Municipal Service Center employees. Procedures will be established for entering and leaving the parking facilities. . Section 3 -Bicycle Lockers and Motorcycle Parking. The City will provide bicycle lockers and motorcycle parking areas for City employees at mutually agreeable work locations. Page 38 of 64 ARTICLE XV» -PHYSICAL EXAMINATIONS . If any non-probationary employee who is required to have a City-provided physical examination not related to workers' compensation programs disagrees with the fmdings of the City-sponsored physician, helshe may consult with hislher own physician and, if hisJher private physician's report conflicts with that of the CitY physician in terms of ability to work at hislher regular job, then he/she may request an evaluation ofhlslher problem through a third physician mutually agreed upon by the employee and the City. o • Cost for such examination will be equally shared and the decision of this physician concerning the continuing ability of the employee to perform hislher work in hislher regular job without exposing himselflherselfto further injury as a result ofhisJher condition shall be the basis for returning the employee to hislher regular work. ARTICLE XVIII..,. SAF·ETY Section I -Health and Safety Provisions. The City shall furnish and use safety devices and safeguards and shall adopt Use practices, means, methods, operations and processes which are reasonably adequate to render such employment and place of employment safe, jn conformance with applicable safety regulations under the State Labor and Administrative Code sections. The City shall not require or permit any employee to go to or be in any employment or place of employment which is not safe. Section 2 -Union Cooperation. Union will cooperate with the City by encouraging all employees to perform their work in a safe manner. Section 3 -Safety Committees and Disputes. Safety committees composed of Management and Union stewards in the below listed . organizations will meet no less than six (6) times annually to discuss sa.fi:ty practices, methods of reducing hazards, and to conduct safety training. This shall in no way remove the basic responsibility of safety from Management nor shall it in any way alter the responsibility of the employee to report unsafe conditions directly and immediately to his {)r her supervisor. Community Services Public Works Water-Gas-Wastewater Field Operations Electric Field Operations Water Quality Control (a) A committee composed of one facilities Management representative, one building inspection representative, two Union representatives, and the City Risk Manager will meet as needed concerning safety matters of the Civic Center. (b) A ten-member Citywide UnionlManagement safety committee with equal Union and Management membership will meet upon call to review safety and occupational . Page 39 of 64 I ! ! j I _. ; i health standards and practices, discuss overall City safety and health problems, and to act as an advisory group to the departmental safety committees. The committee shall review all departmental safety programs and recommend change where necessary. (c) In cases of dispute over safe working conditions the employee will first report such WlSafe conditions to his or her supervisor and every attempt will be made to rectify the problem at this leveL The employee may contact his or her steward to assist in the resolution of the dispute. If the problem cannot be resolved the Risk Manager will be contacted and the problem will be addressed through the interpretation of the basic safety rules and regulations. Should the problem not be resolved at this step, . the grievance procedure will be utilized. Safety grievances shaJ.l be submitted at Step III. (d) In response to recommendations from the Ergonomics Safety Committee, management will develop training workshops which include information on safe ergonomiC work practices. Such workshops will be given at least two times per year. Upon release of CaJlOSHA regulations covering safe workplace ergonomic standards, management will immediately adopt such standards as perty of its Injury Prevention Program. ARTICLE XIX -GRlEV ANCE and APPEAL PROCEDURE Section 1· General Provisions. The City and the Union recognize that early settlement of grievance or appeal of disciplinary actions is essential to sound employee-employer relations. The parties seek to establish a mutually satisfactory method for the settlement of employee grievances, or appeal of disciplinary action, or Union grievances as provided for below. In presenting a grievance or appeal of disciplinary action, the aggrieved and/or his or her representative is assured freedom from restraint, interference, coercion, discrimination or reprisal. Release time for investigation and processirig a grievance or appeal of disciplinary action is designated in Article IV of this Memorandum of Agreement (MOA). Section 2 -DefInitions (8) Grievance means an unresolved complaint or dispute regarding the application or interpretation of rules, regulations, policies, procedures, Memorandum of Agreement or City ordinances of resolution, relating to terms or conditions of employment, wages or fringe benefits, excluding however those provisions of this MOA which specifically provide that the decision of any City official shall be final, the interpretation or application of those provisions not being subject to the grievance or appeal of disciplinary action procedure. (b) Appeal of a disciplinary action means an appeal of any kind of disciplinary action against an employee covered by this Memorandum of Agreement. Discipline is defined as suspensions without pay, reductions in pay, demotion or discharge. Page 40 of 64 . i , j . -> ~ -c Reprimands, transfers, reassignments, layoffs, and negative eomments in performance evaluations are not considered discipline . Seetion 3-Conduct of Grievance Procedure or Appeal of Disciplinary Action Procedure (a) An aggrieved employee may be represented by the Union or may represent himselflherself in preparing and presenting a grievance or appeal of disciplinary aetion at any level of review. Grievances or appeal of disciplinary action may also be presented by a group of employees. No grievance or appeal of disciplinary action settlement may be made in violation of an existing merit rule or memorandum of agreement. The Union will be notified prior to the implementation of any settlement made which affects the rights or conditions of other employees represented by the Union. The Union and the Steward will be copied on all written representation unit grievance or appeal of disciplinary action decisions . (b) AnempJoyee and the representative steward, if any, may use a reasonable amount of work time so long as there is no disruption of work, in conferring about and presenting a grievance or appeal of disciplinary action. Requests for release time to prepare grievance or appeal of disciplinary action shall be made in accordance with the provisions of Article IV, Section 3. (c) Beginning with the third step of the grievance or appeal of disciplinary action procedure, the Chief Steward or Alternate Chief Steward may assist in presenting a grievance or appeal of disciplinary action and may be present at all Step TIl, and IV grievance or appeal of disciplinary action hearings. (d) The time limits specified in this Article may be extended by mutual agreement in writing of the aggrieved employee or the Union and the reviewer concerned. (e) Should a decision not be rendered within a stipulated time limit, the grievant may immediately appeal to the next step. (£) The grievance or appeal of disciplinary aetion may be considered settled if the . decision of any step is not appealed within the specified time limit. (g) If appropriate, the aggrieved employee( s) or the Union and the department head may mutually agree, in writing, to waive Step I andior Step n of the grievance or appeal of disciplinary aetion procedure. (h) Grievances or appeal of disciplinary aetion shall be made in writing and submitted on forms provided by the City or. on forms which are mutually agreeable to the City and the Union. The written grievance or appeal of disciRlinary action shall contain clear, factual and concise language, including: (1) the name of the grievant; (2) a statement of the facts upon which the grievance or appeal of disciplinary aetion is based, including relevant dates, times and places; (3) specific provisions of this Agreement or specific City rules, policies, Of procedures which the grievance or Page 41 of64 appeal of disciplinary action alleges has been violated:; (4) a summary of any steps taken toward resolution; and (5) the action the grievant believes will resolve the grievance or Ilppeal of disciplinary action. (i) Any retroactivity on monetary grievances or appeal of disciplinary action shall be limited to the date of occurrence, except in no case will retroactivity be granted prior to three months before the grievance or appeal of disciplinary action was filed in writing, (j) If the grievance is filed by more than one employee in the bargaining nnit, the Union may, at its option, convert it to a Union grievance after Step II of the griew,mce procedure. The Union may also file a grievance in those instances when, under this Memorandum of Agreement, a Union right not directly related to an individual employee becomes the subject of dispute. Union grievances shall comply with all of the foregoing provisions and procedures. For purposes of time limits, "working days" are considered to be Monday through Friday, exclusive of City holidays. If a mutually agreed solution is reached during any step of this grievance or appeal of disciplinary action procedure, the agreement shall be placed in writing and signed by the City and the grievant or nnion. (m) Upon request of either party, meetings to discuss the grievance or appeal of . disciplinary action shall be held at any step in the grievance or appeal of disciplinary action procedure. Section 4-Grievance and Appeal Procedure. Step I. Informal Discussion. Within fifteen (15) working days after the incident or discovery of the incident on which the grievance or appeal of disciplinary action is based the Ilggrieved employee shall present the grievance action to his or her immediate supervisor and attempt to resolve the grievance through informal discussions. Every attempt will be made to settle the issue at this l~eL Step n. If the grievance is not resolved through the informal discussion in Step 1 or the employee wishes to appeal disciplinary action taken against him!her in the case of a grievance, the employee will reduce the grievance or appeal of disciplinary action to writing and submit copies to the Department head or his or her designee within :fifteen (15) working days of the discussion with the immediate supervisor or within fifteen (15) working days from the receipt of a final disciplinary action. The Department Head or designee shall have fifteen (15) working days from the receipt of a written grievance or appeal of disciplinary action to review the matter and prepare a:written ststement. Step m. If the grievance or appeal of disciplinary action is not resolved and/or the Ilggrieved employee is not satisfied with the Step II decision, the grievant or disciplined Page 42of64 , employee may appeal to the Human Resource Director or his or her designee in writing within fIfteen (15) working days of the receipt of the Department Head's response. The written appeal to the Human Resources level shall include a copy of the original grievance or appeal of disciplinary action, the Department Head's decision at Step II, and a clear statement of the reasons for appeal. Within fIfteen (15) working days, after receiving the written appeal, the Human Resource Director shall review the matter and prepare a written statement. If a mutually agreed solution is reached during this process the agreement shall be placed in writing and signed. Step IV. If the grievance or appeal of disciplinary action is n~t resolved at Step III, the aggrieved emploY>le may choose between final and binding resolution ofthe~evance or appeal of disciplinary action through appeal to the City Manager or through appeal to final and binding arbitration. For the tenn of this Memorandum of Agreement, appeals to final and binding arbitration may be processed only with Union approval. All Step IV appeals must be filed in writing at the Human Resources Department Office within fifteen (15) working days of receipt of the Human Resource Director's decision at Step 3. If the grievant or appellant elects final and binding resolU\ion by the City Manager, the City Manager will choose the methods he or she considerS appropriate to review and settle the grievance or appeal of disciplinary action. The City Manager shall render a written decision to all parties directly involved within fifteen (15) working days after receiving the grievant/appellant's appeal. If the grievant/appellant elects final and binding arbitration in accordance with this provision, the parties shall mutually select an arbitrator within 90 days from the date of receipt of the written request for appeal. In the eve,nt the parties cannot agree on an arbitrator, they shall mutually request a panel of five arbitrators from the California State Conciliation Service or from the American Arbitration Association if either party objects to the State Conciliation Service, and select an arbitrator by the alternate strike method. The arbitrator shall have jurisdiction and . authority only to interpret, apply, Or detennine compliance with the provisions of tliis . Memorandum of Agreement and such Merit System Rules, regulations, policies, procedures, City ordinances, resolutions relating to terms or conditions of employment, wages or fringe benefits, as may hereafter be in effect in the City insofar as may be necessary to the determination of grievances or appeal of disciplinary action appealed to the arbitrator. The arbitrator shall be without power to make any decision contrary to, or inconsistent with or modifying in any way, the terms of this Memorandum Of Agreement. The arbitrator shall be without authority to require the City to delegate or relinquish any powers which by State law or City Charter the City cannot delegate or relinquish. Where either party seeks arbitration and the other party claims the matter is not subject to the arbitration provisions of this Memorandum of Agreement, the issue of arbitrability shall first be decided by the arbitrator using the standards and criteria set forth in Article XX and without regard to the merits of the grievance or appeal of disciplinary action. If the issue is held to be arbitrable, the arbitration proceedings will be recessed for up to five working days during which the parties shall attempt to resolve the grievance .. Ifno resolution is reached, the arbitrator will resume the hearing and hear and resolve the issue on the merits. Copies of the arbitrator's decision shall be submitted to the City, the aggrieved employee and the Union. AIl direct costs emanating from the Page 43 of 64 -, ! arbitration procedure shall be shared equally by the City and the aggrieved employee or the Union. ARTICLE XX -uNSATISFACTORY WORK OR CONDUCT AND DISCIPLINARY ACTION The City has the right to discipline, demote, or discharge employees for cause. Non­ probationary employees whosc work or conduct is unsatisfactory but not sufficiently deficient to warrant discipline, demotion, or discharge will be given a written notification of unsatisfactory work or conduct and an opportunity to improve. Failure to correct· deficiencies and improve to meet standards may result in discipline, demction, or discharge. Discipline is defined as suspensions without pay, reduction in pay, demotion, or discharge. Reprimands, transfers, reassignments, layoffs, and negative comments in performance evaluations are not discipline and shall not be subject to the requirements of this Article. Section 1 -Preliminary Notice of Discipline. Prior to imposing disciplinary action, a supervisor shaH provide an employee with preliminary written notice of the proposed disciplinary action. The notice of proposed disciplinary action must be in writing and served on the employee in person or by registered mall or Fed-Ex. The notice of disciplinary action shall include: (a) Statement of the violations upon which the disciplinary action is based; (b) Intended effective date of the action; (c) Statement of the cause thereof; (d) Statement in ordinary and concise language of the act or the omissions upon which the causes are based; (e) Copies of any documents or other written materials upon which the discip1inary action was fully or in part based. (f) Statement advising the employee ofhislher right to appeal from such action, and the right to union representation. (g) The date and location of the Skelly meeting and the name oithe Skelly Officer Section 2 -Skelly Meeting. The employee shall have the right to respond infonnally to the charges either verbally or in Writing before the discipline is imposed. The employee . shall have fifteen (15) working days from receipt of the notice to request this pre­ disciplinary administrative review. The employee may request a reasonable extension of the time to respond for jnstifiable reasons. The Skelly meeting to listen to the veJ:bal responses shall be scheduled with a City representative who is not the manager Page 44 of64 recommending the discipline (the "Skelly Officer"). The Skelly Officer shall render a final written decision (the "post-Skelly decision'') within fifteen (15) working days of receiving the employee's response, if any, and shall deliver the post-Skelly decision to the employee by personal delivery or registered maiL The Skelly Officer may sustain, modii)', or overturn the recommended disciplinary aetion. If the Skelly Officer sustains or modifies the disciplinary action, the action may be imposed after the post-Skelly decision is delivered to the employee. Section 3 -Appeals. Appeals of disciplinary action should be processed through the proced1U"es outlined in Steps 2-4 of the gtievance appeal of disciplinary action procedure (Article XIX, Section 4.) ARTICLE XXI -NO ABROGATION OF RIGmS The parties acknowledge that Management rights as indicated in Section 1207D of the Merit System Rules ilnd Regulations and all applicable State laws are neither abrogated nor made subject to negotiation by adoption of this MOA. ARTICLE XXII -OUTSIDE EMPLOYMENT The provisions of Article 4.7 of the Government Code of the State of California will govern the determination of incompatible outside employment. ARTICLE XXIII -WORK STOPPAGE AND LOCKOUTS The City agteeS that it will not lock out employees, and the Union agtees that it will not engage in any concerted work stoppage or slowdown during the term of this MOA. An employee shall not have the right to recognize the picket line of a labor organization when performing duties of an emergency nature. ARTICLE XXIV PROVISIONS OF THE LAW Section 1. Conformity and Separability of Provisions. This Memorandum of Agreement is subject to all current and future applicable Federal and State laws and Federal and State regulations and the Charter of the City of Palo Alto and the Constitution of the State of California. Should any of the provisions herein contained be rendered or declared invalid by reason of any existing State or Federal legislation, such invalidation of such part or portion of this Memorandum of Agteement shall not invalidate the remaining portions hereof, and they shall remain in full force and effect, insofar as such remaining portions are severable. Section 2. Merit Rules and Regulations. This Memorandum of Agreement shall become a part of the City of Palo Alto Merit Rules and Regulations applying to employees assigned to classifications in the SEIU unit. As applied to employees assigned to the Page 45 of 64 j i 1 ! SHIU unit, this Memorandum of Agreement shall prevail over any conflicting Merit Rules and Regulations. Section 3 -Resolution. The City and the Union agree by signing this Memorandum of Agreement that the wages, hours, rights and working conditions contained herein shall be continued in full force during the term of this Memorandum of Agreement exeept as otherwise provided for in the Memorandum of Agreement and shall be binding on both the City and the Union . upon ratification by the Council of the City of Palo Alto and uponratification by Union membership. ARTICLE XXV -COST REDUCTION PROGRAMS During the term of this agreement, the Union will aggressively assist Managemerit in developing cost reduction programs. Such programs may include voluntary reduced hours/pay after this concept is studied by Management, and with such application as may be approved by Management. ARTICLE XXVI -TERi\f The Term of this Memorandum of Agreement shall commence on July 1,2010, and shall expire on June 30, 2011. Either party may serve written notice upon the other party during the period between ninety (90) and sixty (60) days prior to JlUle 30, 2011, of Its desire to amend this Memorandum of Agreement. If, at the time this MemotllI1dum of Agreement would otherwise terminate, the parties are negotiating a new Memorandum of Agreement, upon mutual agreement the terms and conditions of this Memorandwn shall continue in effect. Page 4() of 64 i . j ; -i EXECUTED this d1JY, JQIy ,2010: FOR LOCAL 521, SEIU, CTW: FOR CITY OF PALO ALTO: JL s tJ~Z~.t Nick Raisch Worksite Organizer r)tv&nvJ~ Brian Ward . Chapter Chair d/~· , Victor Farisato Chief Steward Margaret Adkinl; Vice Chair JoelDino Secretary ~Jrum--~-~=-~----------------- City Manager Russ Carlsen Human Resources Director Sandra Blaooh Assistant Human Resources Director Marcie Scott Labor Relations Administrator JoeSaccio ,. Deputy Director Administrative Services Department Gregg Betts Community Services Director Robert De Geus Community Services Division Manager Darrell Murray, CbiefNegotiator (lEDA) Page 470f64 REVIEWED: Melissa Tronquet Senior Deputy City Attorney _ ... ; Page 48 of 64 --J- ATTACHMENT A . CITY OF PALO ALTO 2009 SEIU . A ~. Class Job Steo 1 Steo 2 StEP 3 step 4 SI :,:ppr?~ ~~~~o; IAcel Soec IAcet 19.39 2[41 2 . 2 !.62 4 ~07 4 e80 22.6s' 23.84 21 . 2 1.42 4 ~40 5 ,844.80 ~ ill 15 I I --::~! 1 :~:~~H"';::;;';'~.--'-"': ~*~ I ~~~ ~h~U~~~~.Irt---; ~H~+-'i"~ ~1~l3~~~II:~:~:,c~ontr~ro~"(~;~~e~~~~~~~EE3I~~-~ ~ '0 IA~::~t. ~ loee II I-11 !4 ~ l­ I-,071 5~ i~ ::D56. IAssoc Buyer 11 11 ~~3313~I~ASSOCm~~~====~=J~i9a:~ 17.16 '3 13.20 BE 353 IAssoc I 0 ~hl~5.118<+-· ""*~--;;'<:';1.5*3-i;'6 11.87 247 IAssoc Power En~r i9 40.10 12.!1 44.43 ',701.20 269 IAssoc Res 10 40.85 13. '0 45.26 '.845.07 330 IAsstl 3lf.7i 35.10 37.79 I ~ 256 lAss! Power Enar 32.6' 38.lQ. 40.11 52. ~ 268 IAsst F:es +--;~+h~ r.,~~~~~ :-1,J : c,~ *-.;&:7.H--:~ ~ 16. 1.406. '.R73. ;.4 . ~ t· S . I t­ I- ~h;i;l' .54' ~502.4C .0 I-Fi IBuver : Tee Tech . l­ I- 208 DBG 20 3 . . 7 :oor, Utllitv Prol I-i"3: ~ 7. 34 10~~~~UtlIlWP~.S n,.,y 7 ,UUII c:--_---'-_+-~~.68 I-1-.79 ~ :ourt liaison ( .~.57 I-1.91 ~ :rim'l Analvst Cust ~rv I Cust ~vc I- 217 26.47 27.86 29.33 3 88 32. Page 49 or 64 J.R ~ :.705.61 FLSA 10n·1 Ion· j CITY OF PALO ALTO 2009 SEIU t2;).31 21.38 ~ ~.....; 4 4 ~ '--;,03 -..; 1.03 -- ~ • Lead ;a - 75 . , . ,694 •. ;,2' ~p~~Teoo ~h ~ii~t t i:~~ ~~ ~~~~~ ~30. = ~ 16: ~,Pers WGW 25.:- I 383 I Flee Sves Caor< -' -!.2l±: Gas .v.tem fee . • -f-' ~ == DGas II -' '. 456 Golf' I Mach . ~ IGOlf';orMt~erson .....; ~ ;saw Eouie Ooer 391 1eaW Eou P Oosr-L 508 no waste """"C ;2 Library AIls! Mater Shop Lead O§i Vlobile service Tech -- :-8 -- ....: ....: ....:' ~ .,192:-~~t~~~~~~~~~ ~ '.020 .• --' -.....; Page 50 of 64 380 Motor Eauio Mach 381 tor CiUfD ?Rfl 'Or 287 tor i ~ ~"'nlllni i . I Park Main!· .ead ! ~ 1 I PArk RAnnA' ~ --~ i:l i:If -CITY OF PALO ALTO 2009 SEIU Schedule 2 19 2: 19 Page 51 of 64 . - 1.907 r.02 4~ 18.90 5-;000:: ~~ ;.616 I-- 71 sa 11.60 175.: i.580.; 54870., 5a '18.' .392. ~lan·1 . 405 lSI I Ei laff 2, 21 :, ;;5 ~ Jo I Assl ,Public Wks CITY OF PALO ALTO 20~9 SEIU ~ _.. Schedule ),6 24M 2 11 2 ;8 27.68 29.62 16, if ;0 19. ~4 13,14 ;.404, ;.018. 1,240.00 I 309 :::!, 11 ~ 229 I-S ~3Of. 406 'rafCon! Main! 61 713.1 ~ :~;;~~g~~~::~~::~~~ __________ ~~ ~+~~~~~~r-~~~~~_~*~~~~~+~~~~~~~ 435ree Main! Aos! f-~, ~~..ree ~~ ____ ~...;2&41"*'l7_ 27,4',..., -::-'"' ~ , .• ~~~~!~!.u~~1,294.40 ~4~30~·re~e'Th~II~m/LLn~~ ________ ~ __ ~241,.4~~~H-~2~77,~O~~H-~~~~ ,316,80 431 'ree Trlm/Ln Clr-L 20,1 27.48 28.93 ~ 're" Trm/Ln ( Ie Ass! 22.9 24.20 25.48 ,.~" 5f H~+!m'n ,[ river ~ccl Reo ~cctg Tech '2 Como Tech' 1-...;;..;'3;...+.' I ~eeh-l 219 CFGdiVCol Soee 31C I EriCr 486, I Fld Svcs Rep 480 I 481 I I ,Ast 479 I I- , i 36: iKev AON R~n 27' ~~~:;~~~~~~ ~~~~ ~ ~-~i I . Mkt Rale ·5 I I I OD~r . r Lead t~~,oti I r Kev , I Reo - 290 I Install I Cert 289 Jtl Install I Cert ,404. 259 Dif SvstTech 27 35. e 278 T sch 19 26. 4 274 Coord . ;,7, 102.' Page 52 of 64 lon, .. ~ I i i 1 APPENDIX B. APPRENTICESHIPS WATER QUALITY CONTROL OPERATOR TRAINEE may lead to positions within Water Quality Control. ELECnuCIAN/LINEPERSON -LINEPERSON/CABLE SPLICER APPRENTICE: May lead to Electrician or LinepersonlCable Splicer positions. The Utilities Department is proposing to formalize the Apprenticeship prOgralns in the Electric Section to develop joumey level electricians and linepersonlcabJe splicers. The following are basic concepts/principles to be incorporated: 1. Positions/classifications to be identified through the normal budget process - three initially. 2. The joumey level position will not be a promotional opportunity for anyone other than the apprentice underfilling the position, so long as that apprentice is successfully progressing through the program. 3. Employees in Electric Operations who qualify will be given first consideration for the apprentice position prior to other City classifications or recruiting from outside the City. 4. A le~ of agreement will be entered into by the apprentice and the City identifYing the terms and conditions of the program. 5. The program will normally require 36 months to complete. 6. Normal progress through the program will be in periodic increments with formal evaluations. 7. Salary steps will be established to bridge the Electrical Assistant classification into the journey level classification. 8. A process for initial selection and placement in the program will be established. The City and the Union agree to review or develop job descriptions to better reflect the qualification necessary to attract and retain successful candidates for this program: It is further agreed that the job descriptions will not warrant additional Compensation. 9. A procedure for removing an unsuccessful apprentice from the program will be developed. 10. A task force including joumey level persons will be assigned to determine the content and approach to specific elements of training. Page 53 of 64 I , J ~ , , 1 I. Training will consist of on-the-job (OJT) and after hours elements (study and formal classes). Off-the-job training costs will be funded by tuition reimbursement and departmental funds. Personal time spent in off-the-job training will not be compensated. . 12. The apprentice will be under the continuing guidance of an appropriately qualified journey level person during OJT, Such journey level persons will be assigned by Management from among volunteers and will receive no . additional compensation. 13. Qualifications/progress will be verified by appropriately kept records. 14. Unless specifically stated otherwise, regular City personnel policies and MOA provisions will apply to the apprenticeship program. 15. This program may become a conceptual model for apprenticeships in other' divisions or departments. Pag.54 of 64 i ! J i I ! APPENDIX C. ALTERNATIVE 4/11 WORK SCHEDULE The City and Union have agreed to the following alternative work schedule for Public Safety Dispatchers: 1. The City agrees to maintain a minimum of 18 permanent dispatchers on paid status for this alternative 4111 work schedule. If the Communications Unit falls below the minimum staffing levels for Communications for more than 120-days (4.months), the City and the Union will meet and confer over whether to continue the 4/11 schedule or revert to another schedule (such as 411 0) until such time as there are 18 pennanent dispatchers on paid status. 2. The City agrees that in accordance with FLSA requirements the dispatchers Will receive overtime for all hoUrs worked outside of the regularly scheduled work hours of the 4111 schedule. Page 55 of 64 APPENDIX D -DEPTfDIVISION CLASSIFICATION WORKDAY OR WORK WEEK VARIATION Section 1. Exceptions to Standard Workday or Work Week for SEIU Representation Unit: COMMUNITY SERVICES Arts & Culture Division Volunteer -Coordinator Each week (30 hi/uxs): 15 hours of unscheduled time; 15 hours of scheduled time Library Department Coordinator, Library Programs Librarian Senior Librarian Library Specialist Library Assistant Library Asscciate In a given workweek, staff may work three eight-hour days, one seven-hour day, and one nine-hour dily. On a voluntary basis, staff may work. five non-consecutive days within seven. Section 2. Rules Governing Flexible Work Hours. These rules and procedures are established pursuant to Article VI, Section 8, and are an application of Article VIII, Sections 1, Z, and 3 of the Memorandum of Agreement to the classifications of Coordinator, Recreation Programs; Producer, Arts & Sciences Programs; Program Assistant; Theater Specialist, in the Recreation and Arts & Culture Divisions of the Community Services Department, and the classifications of Associate Planner, Building Planning Technician, CDBG Coordinator, Engineer, Executive Secretary, Office Specialist, Planner, Senior Planner and Staff Secretary in the Planning and Community Environment Department. (a) Flexible Work Schedule I. Employees in the covered c1aasification shall be permitted to arrange flexible work schedules with division approval, providing that such schedules shall include forty (40) hours per week. 2. Standard daily office hours shall be Monday through Friday, between the hours of 8:00 a.m. and 6;00 p.m. Flexible hours may oceur for supervision of, and/or attendance at, evening programs, meetings, weekend events, or other programs. Page 5Ii ot64 J C1 -1 , I ') , I "1 ··"1 (b) Overtime I. Emergency call-out work shall be defmed as overtime work and compensated per standard City practices. 2. If the need arises for overtime work due to an unusual circumstance calling for extra hours or due to a special event, compensation shall be allowed with prior approval of the Director of Recreation, Director of Arts and Culture, or the Director of Planning and Community Environment, and shall be compensated for, as spelled out in the Memorandum of Agreement. Section 3. 2080 Plan (a) Either the Union or the City may withdraw from the Plan by giving the other party 30 calendar days written notice. In the event of tennination of the plan, the covered classifications will return to an 8-hour or other authorized workday as provided under Article VIII, Section I, of this Memorandum of Agreement. (b) Provisions of the 2080 Plan are as follows. To the extent that these provisions are in conflict with other provisions of the Memorandum of Agreement, these provisions will prevail. (c) The 2080 Plan or "12 hours per Shift Schedule" is an authorized work schedule for the Electric. System Operators and Water Quality Control Plant Operators. 2080 Plan Under this 2080 Plan, each employee's hours of work per year may not exceed 2,240. For scheduling purposes, and subject to the Merit System Rules.and Regulations, the employee will be guaranteed not less than 2080 hours per year, or no less than 52 weeks at the nonnal number of hours worked per week. Any employee covered by the Plan who works up to 2,080 hours per year is compensated for all hours worked at the agreed upon rate. The City must pay overtime for all hours worked in excess of 12 in any workday, 56 hours in any work week, or 2080 hours in 52 weeks as the case may be. The rate of overtime will be at time and one-halfthe employee's regular rate of pay (or current contract overtime rate, if different). Shift Schedule The shift schedules combined must provide full 24-hour, seven (7) days per week. coverage for the Utility Control Center and Water Quality Control Plan. The shift schedule shall be a rotating schedule. The Electric System Operators' shift schedule will reach the equivalent of 40 hours per week in five weeks. The 12-hour shifts begin at 7:00 a.m. and 7:00 p.m. The Relief shift shall begin at 7:00 a.m. and end at 3:00 p.m. with lunch taken while working. The shift schedule shall be rotating schedule. The Water Quality Control Plant Operators' shift schedule will reach the equivalent of 40 hours per week in two weeks, There will be four 12-hour shifts that begin at 6:00 a.m. and 6:00 p.m. The fifth shift will be a 4/10 shift that begins at 6 a.m. on three days, and at noon on the fourth day. Page 57 0164 · , -·i j Pay Period Pay periods and workweek for the System Operations will begin Sunday at 7:01 a.m. Pay periods and workweek for the Water Quality Control Plan Operators will begin Saturday at 6:01a.m. Wages Wages will be based on the City of Palo Alto Compensation Plan. which may vary from time to time as mutually agreed upon. Overtime Under the 2080 Plan. the City will pay overtime for all hours worked in excess of 12 in any workday, 56 in any work week, or 2080 in 52 weeks, as the case may be. Overtime will also be paid for hours worked when an employee is called in to work other than their regulerly-scheduled Shift. The overtime rate of pay will be one and one-half times (or current contract overtime rate, if different) of the employee's regular rate of pay. All overtime worked will be paid to the employee. No compensatory time off for overtime will be allowed with the exception of Water Quality Control Operations. ReHef Employees This provision only applies to the Electric System Operators. The five Operators share the relief week evenly as they rotate through the five week cycle. Relief employee(s) will be used within the l2·hours shift schedule only when relieving for the System Operators on shift. When not relieving, they will work four eight-hour Shifts. When a vacation relief week results in a 36rhour or 48-hour week, the operator working said week shall be paid at one and one-half (I :6) time their normal rate of pay for hours that exceed thirty two (32) hours, Relief Duties This provision only applies to the Electric System OperatOIS. An employee who is scheduled to perform relief duties shall be available for duty in revolving shifts on any day of the week and may be assigned for relief in any shift without advance notice. Relief employees will be paid standby pay during their relief week. Standby This provision only applies to the Electric System Operators. An employee who is on relief duties is covering standby, and will be compensated according to Article VIII, Section 7 Ca) of the Memorandum of Agreement. If the relief employee is onvacation or Page58of64 otherwise unavailable for relief duties, the employee(s) on their three or four-day off period will be first on standby . . Management reserves the rig~t to utilize Management personnel as Operators on a short­ term, as needed basis, if no Operator is available. Filling Vacant Positions If the City elects to fIll a vacancy other than by reassignment of the shift or the utilization of prior or succeediog shift personnel, the folIowiog procedure shall be used: Employees will be called accorditig to their position 'on the Pre-arranged Overtime List (POL). "lVith the person "lVith the lowest balance being the first one called, The purpose of the POL is to fairly distribute the available opportunities. If an employee turns down the overtime, that amount"lVill be added to the employee's POL bahmce. If ao employee cannot be contacted for such assigoment, the employee will not have any overtime added to their POL account balance. Shift Changes Shift changes ceused by scheduled time off or sick leave will not be considered an official change in shift. Maximum Hours Worked No employee shall work more !han 18 consecutive hours. Rest Period In a 12-hour workday. employees are 'aotitled to a rest period of 8 consecutive hours after working 6 hours overtime during the 12 hours immediately before the regularly scheduled hours of work on a workday or non-workday. Holidays Employees who begin their day or night shift on an observed holiday will receive overtime premium in accordance with Article X, Section 3 of the Memorandum of Agreement. Employees who work a schedule where a regular day off falls on a holiday will be paid for the hours they would have normally worked on that day. Employees workiog for Water Quality Control Operations may accrue holiday time convertible to vacation. Sick Leave Sick leave will be earned. as indicated in Article XII, Section I (a) of this MOA, and shall be charged in increments of one hour. Floating Days Off Floating days off will be converted to hours at eight hours per day and credited to the employees' vacation bank for use as scheduled vacation. Page 59 of 64 Vacation An employee's total entitlement will be converted to hours (eight hours = one day). A workday will consist of 12 hours, and employees taking vacation will be charged 12 hours of use. Two week notification is required for any scheduled time off. Only one person at a time may be scheduled off. It is the intention of the City that vacation be taken in units of one work week; however, with approval ofhislher supervisor, an employee may use hislher accrued vacation in units of less than one work week. Meals Shift employees shall be permitted to eat their meals during work hours and shall not be allowed additional time, therefore at City expense. Shift Premium Shift premium will be handled in accordance with the current Memorandum of Agreement between the City and the Union, Article VIII, Section 8 . . Jury Duty Time off for jury duty which oconrs on a regularly scheduled workday will result in the employee being credited with up to 12 hours worked, for pay purposes. Employees called for jury duty who are working the evening portion of the 12-hour schedule will be placed, for payroll and scheduling purposes, on the day shift for each scheduled day such employee is required to report for jury duty, and will not be required to work the evening 12-hour shift before or after being required to report for jury duty. However, such employee shall return to work on the day shift upon being released from such duty if fuere are at least four hours remaining prior to the end of the day shift. All other provisions of Article xn, Section 5, of the current Memorandum of Agreement shall apply. Page 60 of64 -I ---I APPENDIX E. IN-LIEU PREMIUMS 1. For employees in the following operations assigned to work schedules other than Monday through Friday, the calendar day will be. considered the holiday for premium pay of in-lieu scheduling purposes: Communications Waler QUality Control Animal Confrol Golf Course Utilities Services LimMill Open Space Electric System Operator 2. If Deceruber 24 and 31 faIl on Sunday, then the preceding Friday will be designated for purposes of excused time off, except in the case of Community Services staff who may be scheduled to work on Saturday, in which case Saturday will be designated for purposes of excused time off. For Open Space and Library personnel, designation of excused time off will be based on Park and Library schedules and employee preference. Page 61 of 64 APPENDIX F. COMMUNICATIONS DMSION PROMOTIONS L Prorootional opportunities within the Communications Division will be carried out in compliance with procedures set forth in Article VI, Section 5, of the Memorandum of Agreement between the City and SElU Local 521, execpt that; a. In sub-paragraph (e) of Article VI, Section 5, the term "seniority" shall be defined as division seniority. b. Division seniority will be calculated from an employee's first day of employment in the divisio~, minus any unpaid leave. Page 62 nf64 APPENDIX G: SIDE LETTER OF AGREEMENT SIDE LETTER OF AGREEMENT ON CPA-SEIU CLERICAL ~TUDY 1. The parties will meet and confer over newly proposed clerical job descriptions. 2. Upon completion of the above meet and confer process, the City will issue any new or revised re-allocation letters to affected clerical employees within 15 working days. 3. The Union and/or affected employees will have 15 working days to appeal any reallocation to the Human Resources Direetor. " 4. Allocation appeals will be heard by the Human Resources Direetor or designees 'within a reasonable timeframe agreed to by the parties. 5. Decisions from such appeals will be issued by the City within 15 working days of each appeal. 6. The Union and/or affeeted employees will have 15 working days from receipt of the allocation appeal deeision to further appeal the matter to Binding Arbitration, pursuant to the provisions of Article XIX, Section 4, Step IV (Grievance Procedure) of the MOA. 7, The City and the Union agreed to conduct a clerical study in May 2004, The study was completed in May 2006. It is expected that classification and compensation changes will be made as a result of this study. The City and the Union are to meet and confer over the results of the study. Any changes to classification or compensation as a result of this process will become effective 511106. Page 63 of64 " .j I ! APPENDIXH Withdrawal of Unfair Practice Charges and Grievances Removal of Letters of Reprimand Upon ratification by the Union and approval by the City Council, Union and City agree to dismiss the following Unfair Labor Practice charges and grievances. The parties agree to take all necessary actions to complete such dismissals: • City v. SEIU.(SF·CO·21O·M) • SEIU v. City (SF-CE·690-M) • City v. SEIU (SF-CO-214-M) • SEIU v. City (SF-CE-704-M) • SEIU v. City (SP-CE-729-M) • Grievance #62534-521 • Grievance #59669-521 Upon written continuation that the charges and grievances above have been withdrawn, the City will remove Letters of Reprimand associated with the "involuntary furlough" (characterized by City as unlawftU strike). Page 64 of 64 -" I ATTACHMENT "B" ***NOT YET APPROVED*** RESOLUTION NO. __ RESOLUTION OF TIlE COUNCIL OF THE CITY OF PALO ALTO ADOPTING A COMPENSATION PLAN FOR CLASSIFIED PERSONNEL (SEIU) AND RESCINDING RESOLUTION NOS. 8657, 8658, 8727, 8800, . 8833,8848,8908,8909,8916,8951,8994 and 9047 The Council of the City of Palo Alto does RESOLVE as follows: SECTION 1. Pursuant to the provisions of Section 12 of Article ill of the Charter of the City of Palo Alto, the Compensation Plan, as set forth in Exhibit "A" attached hereto and incorporated herein by reference, is hercby adopted for Classified Personnel (SElU) effective July 1, 2010 through June 30, 2011. SECTION 2. The Compensation Plan adopted herein shall be administered by the City Manager in accordance "ith the Merit System Rules and Regulations. SECTION 3. revoked by the Council. SECTION 4. The Compensation Plan shall continue in effect until amended or The Director of Administrative Services is hereby authorized to implement the Compensation Plan adopted herein in his preparation offorthcoming payrolls. The Director of Administrative Services is further authorized to make changes in the titles of employee classifications identified in the Table of Authorized Personnel contained in the 201 0-11 budget if such titles have been changed in the Compensation Plan. SECTION 5. Resolution Nos. 8657, 8658, 8727, 8800, 8833, 8848, 8908, .8909, 8916, 8951, 8994 and 9047 are hereby rescinded. 1/ // /1 /1 1/ /1 100726 ,h &261386 1 ***NOT YET APPROVED*** SECTION 6. 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: AYES: NOES: ABSENT: ABSTENTIONS: AlTEST: APPROVED: City Clerk Mayor APPROVED AS TO FORM: City Manager Senior Asst. City Attorney Director of Administrative Services Director of Hnman Resources lO0726 sh 8261386 2 I CITY OF PALO ALTO COMPENSATION PLAN SEIU CLASSIFIED EMPLOYEES EFFECTIVE: Pay period including July 1, 20 I OM!l'}' 1, ;WOa Through June 30, 201!G9 1 COMPENSATION PLAN FOR THE CITY OF PALO ALTO Classified Personnel SECTION I. SALARY The llase sals!)' fer tae salary tallies sf tHe fellewiflg elassHieaiieIls will reaei ... e e€!lIit), adjllSlmeIlls as fellews efJ:@sti'lS 9130/06. Bli)'er 10.8% Assosiate BIfj'el' 1(:),8% Plffilie Safety Dispateaer 3.0% Lead Plffilie S~· Dispateaer 2.7B~ Desktell Teehaieian 2.7% Gra)'Jhie Desigaer 2. 7% B€j:llijJlIleat OfJeratar Lead 2.3% TFuek Driver 2.3% !llfe"t Sweeper Ollerater 2. 3 % Slfeet Sweeper Operator Lead 2.3 % Seaior PlarnieF 1.3% BlIilEiiag/Planniag Toehaieian 1.3% Tree Trimmer/Liae Gle8fer 1.1 % Tree TrimHlen'Liae Clearer Lead 1.1 % Tree Trimmer,'LiBe G1eaeer As&isl. 1.1 % Tree MaiBteI!anee A,,;sistaat 1.1 % Tree Maffit9IIaa-ee PerseR J .1 % Park Ranger U)% Sterekeeller ------------lQ"' . ..,6Q%o !lterekesper Leaa iU\% Assistaat Sterekeeper 0.6% Fleet Servisss GoerdiBater 0.6% EquijJrR9!lt Parts Teehaieian 0.6% LiaspersenlCallJe Splieer 0.5% LiaepersoolCallls Splieer Lead 9.5% Liaep~'FSeIl/Callle SfJlia9F T 0.5% LiBep_eRlesllls SfJlieer TI. 0.3% Researe6 Plamler 9.3% Assistal'lt Researee Planner -9.3% ASSgeiale Researee Plamler 9.3% Utility Rate Allal)'st 0.3% EHgiaeefiBg Teeh I 02% EHgiaeeriag Teeh II 1:)2% 2 F~gme6l'ing Teeh ill \).2% Landfill Tee1mieiaB Q.2% CeBldllJil'lity Ssrviees Offioer \).2% GeHrt LiaiS8ft Offiesr il.2% Crime "'dlaly"! \).2% PrOflerty Eviaeaee Teelmieisa il.2% A. Establishment of Salm The City Manager is authorized to make appointments to or advancements with the prescribed ranges upon evaluation of employee qualification and perf=ance. Merit advancements from the first salary stop to the second salary step shall be granted at six-month intervals and between the second and subsequent steps at one-year intervals if the affected employee has demonstrated continued improvement and efficient and effective service. For the purpose of determining step time requirements, time will commence on the fIfst day of the month coinciding with or following entrance onto a salary step. Stop increases shall be effective on the first date of the payroll period in which the time and performance requirements have been met. In the event that a downward adjustment of a salary range indicates a reduction in the established salary of an individual employee, the City Manager may if circumstances warrant, continue the salary for such employee in an amount in excess of the revised range maximum for a reasonable period of time. Such interim salary ranges shall be defmed as "Y rates." .... Salary moraases will Be as fellows: 1.1 % Base salary merease te !be salary tallies fer all elassffieatieas effeOtPf8 lJe/Q7. 2.35% 13ase salary mSTsase Is the salary tsales fer all elassifieatisfts effeetpiil7!tI Q7. 3.3.0% eass salary iBerease Ie tke salary tallies fer a±l elassifieatiefts effeetive 7/1/08. SECTION II. SPECIAL COMPENSATION Personnel covered by this compensation plan may receive special compensation as follows. Eligibility shall be in conformance with the Merit Rules and Regulations and Administrative Directives issued by the City Manager for the purposes of clarification and interpretation. A. Overtime, Working Out of Classification. and In-Lieu Holiday Pay Compensation for overtime work, working out of classification and scheduled work on paid holidays shall be paid as provided in the Memorandum of Agreement and in conformance with the Merit Rules and Regulations and Administrative Directives. B. Standby Pay, Call-Out Pay (1.) Standby Compensation 3 j I Employees performing standby duty shall be compensated at the daily rates established below: Periods Monday through Friday 4:30 p,m, -8:00 a.m, Saturday, Sunday, Holidays (2,) Minimum Call-Out Pay Compensation S50,00 per day $73,00 per day Employees not otherwise excluded from receiving overtime pay that are called out to perfonn work shall be compensated for at least two hours' pay from the time of the call -out for eacb occurrence at the appropriate overtime rate, The two-hour minimum does not apply to employees called out to work while earning pay for being in a standby status unless called out to perform billable customer convenience work in which case the two-hour minimum will apply, (3,) Night Shift Preminm Night shift preminm in the amount of $1.44 per hour shall be paid to employees for work performed between 6:00 p,m, and 8:00 a,m, A minimum of two hours must be worked between 6:00 p,m. and 8:00a,m, to qualify for the premium, Employees who regularly work night shifts shall receive appropriate night shift premiums, relating to night shift hours worked, in addition to base pay for holidays, sick leave and vacation. Night shift premium does not apply for overtime situations unless overtime is approved to replace an employee who would have other wise received a night shift premium, C. Tool AHowance (1.) Mechanics in Equipment Maintenance, Park Maintenance Lead, Golf Course Equipment Mechanic, Motorized Equipment Mechanic and Mobile Service Technician shall be paid an annual tool allowance of$610 annuaUyeffective July 1, 2005 (2,) All tool allowances shall be paid bi-weekly, D. Shoe AHowance/Foot Protection (I.) Safety Shoes The City shall reimburse employees 75% of the cost of job related safety shoes upon verification of such purchase by the employee, 4 (2,) Walking Shoes The City will reimburse employees 75% of the cost of job-related walking shoes for any positions necessary or required as det=ined by management including Meter Reader and Meter Reader-Lead, in an amount not to exceed $300,00 per year. A walking shoe is a durable work shoelboot (non-steel toed), is ankle supporting; oil, gas and slip resistant: waterproof or water resistant; lightweight and durable; and also provides hard snrface cushioning, (3,) Rainy Weather Foot Protection The City will provide rainy weather foot protection and one summer hat for the classification of Parking Enforcement Officer, E. Certifications (1,) The City will pay special registration andior certification fees as follows: Classification Reouirement I Bldg Inspect Spec CBO Certificate Cathodic Technician Corrosion Technician by the National Assoc. of Corrosion Engineers or equivalent Engineer Professional Engineer Cert, for 5th Step) jEquip Maint Serv Pers IF orklift Operator Cert, OSHA-approved) b Golf Course Maint Pers K;lualified Applicators' License ~ustW aste Inspector lBackflow Prevention Device TClitt:r !mspector Field Services, Utilities 101 (DOH) iInstalleriRepairer Series, Dl (DOH) fM'ech Unit Repairer IW elding Certificate Motor Equip Mechanic IEMS,ASE ~ndLead !POST Basic Dispatcher Public Safety Dispatcher !POST Fire Academy EMD il'OST Basic Dispatcher Public Safety Dispatcher, Lead POST Fire Academy POST Supervisioo EMD Sr Operator, WQC Grade ill Wastewater Treatment Plant Oper Cert. Surveyor, PW Licensed Land Su!,\,eyor Certified Tree Worker andior Tree Trimmer/Line Clearer Qualified Line ClearancelTree Trimmer Cert OSHA-approved) Tree TrimmerlLine Clearer-Lead Certified Arborist 5 Uti! Install/Rep series lPolyethylene Fusing Coo. Gas Operator Coo. (DOT) Veterinarian Tech ral Health Tech. Cert. iWater System 0l2erator I Grade DI -Wateri)ist.rilmtion Operator Iw ater System Operator II "Grade DII -Water Distribution Operator & Grade TIl I I-Water Treatment Operator iSenior, Water System Operator Grade DIll -Water Distribution Operator & Grade TIll Water Treatment Operator WQC Plant Oper I Grade I Water Treatment Operator COO. WQC Plant Oper II Grade II Water Treatment Operator Cert. WQC Plant Oper Trainee Grade I Water Treatment Operator Cert. Water Meter Cross-jBackflow Prevention Tester Cert. iConnection Tech (2.) The City will pay for the Department of Motor Vehicles (DMV) licensing fees for all employees required to maintain a Commercial Driver's License in accordance with the California Vehicle Code and applicable laws prescribed by the Department of Transportation. (3.) The City will pay for Utility Installer Repairer personnel who obtain Welding Certification. Welding Certification is a requirement based upon assignment and may not apply to all Utility Installer Repairer personnel. The City agrees that all Installer/Repairers will have the opportunity upon request for a Welding Certificate course within a reasonable amount of time. (4.) Pipeline Welding Assignment The City will provide a 4% increase in base compensation to Utility Installer-Repairer, Installer­ Repairer Lead positions that meet DOT certification requirements and are assigned these duties. Utility Inataller-Repairer and Utility Installer-Repairer Lead positions that fail to maintain current certifications will not receive the 4% increase. Positions assigned these duties and designated by IYfanagement to receive this premium will not exceed five (5) Utility Installer/Repairer and InstallerlRepairer Lead. (5.) If the certification is required in the job description, certification must be maintained. In accordance with their job description Maintenance Mechanics that are assigned to Water Gas Wastewater must maintain all required certifications and shall receive 4% increase to their base pay for pipeline welding. (6.) Building Inspector Upon successful completion of probationary requirements, the City will pay Building Inspectors a one (I) percent of base salary one-time payment for a certification above what is required. Employees may request one payment per year to a maximum of two payments in career. Payments will not exceed a maximum of one percent per year Or two payments in a career. The Building Inspector Job Description specifies current requirements and the Union and City will 6 agree on a list of appropriate certifications eligible for the premium. Premiums will not be paid if certification is not maintaioed. (7.) Water and Wastewater System Operator Certification Employees classified io the followiog positions: Water Quality Control Plant Operators 1 and II, Senior Operator Water Quality Control, Water System Operators I and II, Senior Water Systems Operator, Inspector, Field Services assigned to Utilities and Installer Repairer Job Series may be eligible to receive a I % base pay premium for certifications required by the Department ofHea1th andlor the State Water Resources Control Board. Employees within these job classifications that have successfully completed probationary requirements may request an annual payment of one (1) percent for one (I) certification that is above those listed in their job description. An employee who qualifies for this payment shall be paid 1% of the employee's annual base salary once per year. The employee shall be responsible for providiog the City with written documentation that the employee has obtaioed and is maintainiog the qualifYiog certification on an annual basis. Premiums will not be paid if certification is not maiotaioed. Eligible employees should verifY certification will qualifY for the premium before attemptiog certification. The Union and the City will update the job descriptions to reflect ncwlyrequired certifications with no further adjustments to base salary. Payments will not exceed a maximum of one percent per year, and will take effect in the pay period followiog the verification of certification. All costs for obtaioiog certifications above what the job deseription requires will be the responsibility of the employee and may be paid for by using the City'S tuition reimbursement program. (8.) In accordance with Cal-OSHA regulations any employee who operates a forklift must have Forklift Operator Certification, Training to be provided by the City. SECTION m. Group Insurance A. Health Plan (I.) Active Employees The City shall pay premium payments up to the monthly medical premium for the Z"" most expensive plan (among the existing array of plans) except that for increases that go into effect after January 31, 2010 the City and participating employees will share equally the first ten percent (10%) of each premium increase that occurs for the plan io which the employee is enrolled at their respective level of enrollment (i.e. one party, two party, family). If a given iocrease exceeds ten percent (!O%), the balance of that inerease will be paid by the City. If sufficient increases occur that the employee portion of the premium for the plan in which he or she is enrolled equals ten percent (10%) of the total premium at the employee's level of enrollment, the employee's share of further premium increases shall be ten percent (10%) and the City's share shall be ninety percent (90%). City medical premium eontrilmtions will be prorated or part-time employees hired or newly assigned to a part-time work schedule on or after January 1, 2010 based on the number of hours per week the part-time employee is assigned to work. If PERS changes the plans it offers, the City and the Union will meet and confer over the City continuing to provide an equivalent benefit at an equivalent cost. 7 Effective February 1,2010, with premium increases that go into effect after January 31, 2010 the City shall contribute to its retiree insurance trust (the PERS retiree medical trust or its successor) an amount not less than the amount of premiums paid by active employees in the bargaining unit in the respective calendar year as a result of the sharing of the first 10% of each premium increase as provided above in this paragraph 1. The City shall make one contribution in the fiscal year to cover the entire amount payable to the trust under this paragraph as of the preceding December 31. Through December 31, 2009, the City will reimburse employees on PERS Care, who switch to PERS. Choice during the 2006 open enroliment period and remain in PERS Choice for maximum calendar year co-payments for unreimbursed costs incurred due to the difference between the PERS Care maximum ca1ertdar year copayment responsibility an the PERS Choice maximum calendar year copayment responsibility. The total payments per employee will not exceed $1,000.00 annually unless employee has a one dependent/family coverage in which case annual payment will not exeeed $2,000.000. The City has agreed to provide an annual amount of $50,000.00 to address these costs. If total claims for reimbursement exceed available funds, the City will use any unused tuition reimbursement funds budgeted for SEIU for these purposes. Any money left from each year will carry over to subsequent years of this contract. The City agrees to offer a program to active SEIU employees enrolled in PERSCare as of 9/1/06 who elect the PF-RS Choice health plan in which the City will reimburse the employee andlor dependents for any covered medical expense which exceeds the $2 million Lifetime Maximum Benefit. (2.) Health Plan Coverage for Future Retirees Hired Before Januarv 1, 2005 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. Effective 111/07 the City's monthly employer contribution for each retiree shall be the amount necessary to pay for the cost of his or her enrollment, in a health benefits plan up to the monthly premium for the 2nd most expensive plan offered to the SEIU employee (among the existing array of plans). However, the City contribution for an employee hired before January 1,2005 who retirees on or after January I, 2010·shall be the same contribution amountitmakes from time to time for active City employees, except that employees retiring after January 31,2010 but on or before December 3U1H1e 3G, 2010 shall not be required to pay any premium increase that first takes effect after January 31, 20 I O. For 2010, the contribution for dependents is 85% (90% in 2011) of the difference between the applicable "Employee and One Dependent" or "Family" maximum employer contribution for Active SEIU employees and the maximum monthly employer contribution for "Employee Only" coverage. This contribution for dependants will increase annually by 5% of the difference between the single party premium and the two or family member premium, until such time as the amounts are equal. (3.) PERS-Health Benefit Vesting For Future Retirees Effective Januarv 1, 2005 The CaIPERS vesting schedule set forth in Government Code Section 22893 will apply to all 8 SEIU employees hired on or after January 1,2005. Under this Jaw, an employee is eligible for 50% of the specified employer health premium contribution after ten years of service credit, provided at least five of those years were performed at the City of Palo Alto. After ten years of service credit, each additional year of service credit will increase the employer contribution percentage by 5% until, at 20 years' service credit, the employee will be eligible upon retirement for 100% of the specified employer contribution. However, the maximum contribution for family members will be 90% of the specified employer contribution. The City of Palo Alto's health premium contribution will be the minimum contribution set by CalPERS under Seetion 22893 based on a weighted average of available health plan premiums. (4.) Coverage for Domestic Partners Domestic Partnership Registered with the California Secretary of State. Employees may add their domestic partner as a dependent to their elected health plan coverage if the domestic partnership is registered with the Secretary of State. Domestic Partnership Not Registered with the California Secretary of State. Domestic partners who meet the requirements of the City of Palo Alto Declaration of Domestic Partnership, and are registered with the Human Resources Department, will be eligible for reimbursement of the actual monthly premium cost of an individual health plan, not to exceed the maximum monthly City employer contribution for one-party coverage under the CalPERS Health Benefits Program for SEIU members. Evidence of premium payment will be required withrequcst for reimbursement. (5) Alternate Medical Benefit Program At City option during the term of this Plan and if otherwise available, the City may offer an ineentive payment in lieu of City-paid dependent or family medical coverage for those employees who voluntarily decline dependent coverage. If a regular employee and/or the employee's dcpendent(s) are eligible for medical insurance through any other employer-sponsored or association sponsored group medical plan, the employee may elect coverage under this alternative medical insurance coverage through the other employer­ sponsored or association plan and waives bislher right to the City of Palo Alto's medical plan insurance coverage for same individuals. Employees electing alternative coverage and waiving City coverage will receive cash payments equal to approximately half of the "average monthly premiums"for their medical insurance coverage. "Averaged monthly premiums" are the average of the Kaiser HMO, Blue Shield HMO and PERS Choice PPO premiums of the employee's City medical covt,'l'age available through the CalPERS Health Benefits Program. The rates for 20GelQ are as follows: One Party: Two Party: Family: $269.77~ $528.814l4.OO $701.41~ 9 -; I The rate~ for 20W 11 are as follows: One Party: Two Party: Family: $301.00~ $603.004@,OO $783.00~ If the State of California or federal government requires the City to participate and contribute toward coverage under any medical plan outside ofPEMHCA, the City's total liability for enrolled employees and retirees and their eligible family members Shall not exceed what the City would have paid toward PEMHCA coverage in the absence of such state or federal plan. The City will meet and confer with the Union over the impact of such change on matters within the scope of representation before implementing the change. B. Dental Plan The City shall continue to provide a self-funded dental plan for the benefit of City employees and their eligible dependents. The City will pay 100% of the required premiums for the program except that benefits for regular part-time employees will be prorated as follows: (1.) Employees hired after January 1, 2005, who will work less than full time, will receive prorated premium costs for dental benefits in accordance with hislher percentage of a full­ time work schedule. Part-time employees currently receiving full benefits will not be impacted. (2.) The maximum benefits per calendar year shall be $2,000 effective January 1, 1990. Effective July 1, 2001, dental implants in conjunction with one or more missing natural teeth, and removal of implants will be covered as a Major Dental Service at 50% usual, customary and reasonable (VCR.) (3.) Effective 111107 the City will add composite (tooth colored) fillings in dental plan posterior teeth (4.) Effective 111107 the City will pay up to $2000.00 for Orthodontia coverage. C. Basic Life Insurance The City shall continue the basic and supplemental life insurance plan as currently in effect for the term of this compensation plan. D. Long Term Disability Insurance The City shall continue the long te!]ll disability insurance plan currently in effect for the term of this compensation plan, 10 For Plan A the benefit is 66 and 2/3% of pre-disability earnings to the maximum benefit level of$4000.00 per month. Employee coverage is subject to a voluntary payroll deduction of the insurance premium applicable to the first S6000 of monthly salary, less a credit of $11.17 per month to be paid by the City. For Plan B, the benefit is 60o/00f pre-disability earnings up to the lllllXimum benefit level of $1800 of month. Employee coverage is subjeet to a voluntary payroll deduction of the insurance premium applicable to the first S2000 of monthly salary for Plan B; the City will pay premiums in excess thereof. The City will pay up to $17.50 per month toward long term disability insurance premiums for those employees without eligible dependents covered under the health insurance provisions. E. Vision Care The City shall continue to provide a self-funded vision care program for the benefit of City employees and their dependents. The City shall pay 100% of the required premiums for the program. The benefits of the vision care program shall continue to be equivalent to $20 Deductible Plan A under the Vision Service Plan. };'. Dependent Care Assistance The City shall continue to provide a Dependent Care Assistance program for employees that complies with Code Sections 125 ofthe Internal Revenue Code. G. Retirement (1.) The City will continue the present benefits under the Public Employees' Retirement System 2.7% at age 55 formula for employees hired before January 1, 2010 or the later effective date of the 2%@60 formula for new hires as described herein. The City shall amend its contract with CalPERS to provide such employees hired on or after the effective date of the CalPERS amendment with the CalPERS retirement formula two percent (2.0%) offmal salary at age sixty (60). The City will implement this change on July 17,2010. Employees who retire and were employed by the City on or before April I, 1977, and spouses of deceased employees who were employed by the City on or before April I , 1977, shall continue reductions in utility rates. All retired employees and spouses of deceased employees shall also have residential privileges at City libraries; refuse disposal area, golf course and swimming pools. (2.) Effective June 30, 2010, the PERS employe~~share contribution rate of employees under the 2. 7%@5 5 pension formula shall change to five and three quarters percent (5.75%) and the City's contribution shall simultaneously change to two and one quarter percent (2.25%) of pay For employees hired on or after January 1, 2010 or such later date as the 2.0% @60 formula is implemented by the City, as provided in Section I above, employees covered by that formula shall pay five percent (5%) of pay toward the seven percent (7%) employee contribution and the City shall pay two percent (2%). However, if PERS laws or rules require that contribution rate of employees toward the respective employee contributions under the 2%@60 and 2.7%@55 formulas must be the same, the uniform employee contribution rate shall be six percent (6%) with the City paying the remaining percentage for the applicable formula. 11 (3.) Conversion for Final Tw!:'iye Months Prior to Retirement Notwithstanding Section 2 above and pursuant to Government Code Section 20615.5, upon filing a notice of retirement, the amount of the City-paid PERS employee contribution will be converted to a salary adjustment of equal amount on a one-time irrevocable basis forthe final twelve months innnediatelyprior to retirement. For this fmal twelve-month period the employee shall pay PERS employee contributions. Upon receiving an employee's notice of retirement the City-paid PERS employee contribution that will be converted to a salary adjustment of equal amount on a one-time irrevocable basis for the fmal twelve months innnediately before retirement will be the amount of the applicable employee-paid contribution set forth in Section 2 above. For this final twelve­ month period the retiring employee on the 2.7 at 55 formula shall pay the full percentage of the applicable PERS employee contributions (8% for employees on the 2.7 @55 formula and 7% for employees on the 2.0% at 60 formula). SECTION IV. Other Benefits A. Training Programs (1.) Employees assigned by the City to attend meetings, workshops or conventions of their professional or technical associations shall have their dues and reasonable expenses paid by departmental funds and shall be allowed to attend such workshops, meetings and conventions on paid City time. (2) Health Club/gym membership reimbursement of these expenses is taxable to the employee. (3) City will reimburse for travel, meals and lodging while away from home attending an educational conference that the supervisor authorizes as being job related or which will improve an employee's skills. Per City Policy and Procedure 1..02, the Pre-Travel Authorization Form should indicate expenses that will be paid. B. Vacation Cash Out Once each calendar year an employee may cash out eight or more hours of vacation accrual in excess of 80 hours, to a maximum of 120 hours, provided that the employee has taken 80 hours of vacation in the previous 12 months. C. Bilingual Premium $35 per pay period shall be paid to a bilingual employee whose abilities have been determined by the Human Resource Director as qualifying to flll positions requiring bilingual spesking andlor writing ability when the employee regularly performs such duties. The Human Resource Director will determine the number, timing, location and duration of the assignments receiving the additional pay provided herein and which languages are needed. Sign language shall be recognized as a bilingual skill under this Article. Disagreements over the designation of positions 12 will be referred first to the Labor Management Committee. If a disagreement still exists it will be referred to the Grievance Procedure. D. Commute Incentives and Parking Effective August I, 1994, represented employees who qualify may voluntarily elect one of the following commute incentives: Civic Center Parking. Employees assigned to Civic Center and adjacent work locations. The City will provide a Civic Centcr Garage parking permit. New employees hired after April 30, 1994 may initially receive a parking permit for another downtown lot, subject to the availability of space at the Civic Center Garage. Public Transit. The City will provide monthly Commuter Checks worth the value of: $40 for employees traveling two or more zones on Caltrain; $40 for employees using the Dumbarton Express, BART, the ACE train or a commuter highway vehicle; $35 for employees traveling within one zones on Caltrain; $35 for employees using VTA, and other buses. These checks are pre-taxed and may be used toward the purchase of a transit pass. Carpool. The City will provide $30 per month (taxable income) to each eligible employee in a carpool with two or more licensed drivers. Vanpool Program. The City will provide Commuter Checks worth the value up to $60 to each employee voluntarily participating in the Vanpool Program. These vouchers are pre-taxed and may be used toward payment of the monthly cost. Employees must fulfill the basic requirement of the Employee Commute Alternatives Program to qualify. Bicycle. The City will provide $20 per month (taxable income) to eligible employees who ride a bicycle to work Walk. The City will provide walker $20 per month (taxable income) to eligible employees who walk to work 13 j i -j • ATTACHMENT "C" 2010-2011 MEMORANDUM OF AGREEMENT' City afPalo Alto and Local~521. SEIU, AFL CIO, CLCCTW PREAMBLE- This Memorandum of Agreement {hereinafter "MOA"is entered into by the City of Palo Alto (hereinafter referred to as the "City") and Loca1521 Service Employees International Union, CTW (hereinafter referred to as the "Union''). For the purposes of this MOA "employee" shall mean an employee assigned to a classification within the SEIU General Employee bargaining Unit. ,This MOA is pursuant and subject to Sections 3500-3510 of the Government Code of the State of California and Chapter 12 of the City of Palo Alto Merit Rnies and Regulations. ARTICLE I -RECOGNITION Section I· Recognition. Pursuant to Sections 3500·3510 of the Government Code of the.State of California and Chapter 12 of the City of Palo Alto Merit System Rules and Regulations, the City recognizes the Union as the exclusive representative of a representation 'unit consisting of all regular full and part-time employees in the classifications listed in Appendix A attached hereto. This unit shall for purposes of identification be titled the SEIU General Employees bargaining unit (hereinafter "General ' Unit). Section 2 • Protection of Unit. No supervisor will perform the work of an employee in the General Unit provided that there is an employee available who regularly performs such worle. This does not preclude a supervisor from performing work ofa minor nature or during bona fide emergencies or on a standby status when willing and, qualified unit employees do not live within a reasonable response time of their work location. Supervisory personnel shall he called out to perform unscheduled work only when SEID General unit employees are unavailable to perform such work or in cases of bona fide emergencies as defined in Article VIIT, Section 2. fu cases of bona fide emergencies, SEIU General unit employees shall be called out to complete the necessary work after the immediate emergency situation has been reasonably contained. ARTICLE n -N'O DISCRIMINATION Section 1 • Discrimipation. The City and Union agree that no person employed by or applying for employment hereto shall be discriminated against because of race, religion, creed, political affiliation, color, national origin, ancestry, union activity, age, disability, sexual orientation, or gender. Section 2-Right to Join the Union. The City and the Union agree to protect the rights of all employees to exercise their free choice to join the Union and to abide by the express provisions of applicable State and local laws, Pag~l ot64 --i ARTICLE TII-UNION SEct'RITY Section 1-Notice. When a person is hired in any of the covered job classifications, the City shall notifY that person that the Union is the recognized bargaining representative for the employee and give the employee a current copy of the Memorandum of Agreement. When a group employee orientation is held for new employees of the bargaining unit, a union representative may make a presentation to such bargaining unit employees for the purpose of explaining matters of representation. The presentation shall not exceed 15 minutes. Section 2 -Agency Shop. (a) Every employee in the bargaining unit covered by this Memorandum of Agreement shall; (1) remain a member in good standing of the Union; or (2) pay to the Union a.monthly service fee, to be set by the union in accordance with applicable law, in an_amount not to exceed the standard initiation fee, periodic dues, and generatassessments of the organization; or, (3) in the case of an employee who certifies that he/she is a member of a recognized religion, body or sect which has historically held conscientious objection to joining or financially supporting public employee organizations, pay a charity fee, equal to the service fee, to a non-religious, non-labor charitable ftm.d exempt from taxation under Section 501 (c)(3) of the Internal Revenue Code, chosen from one of the following three charitable organizations_agreed to by the City and the Union (or any successor organization(s) agreed to byJhe City and the Union): United Way of California Community Health Charities Environmental Federation of California Union members may declare their intention to terminate Union membership by registered letter, return receipt requested, to the Director ofHurnan Resources and_the Union oniy during the 30-day period between 60 and 90 days before expiration of the MOA. (b) Employees who are newly hired into or who join the bargaining unit shall elcct one of the above payment deduction options by completing and submitting the Employee Election form within thirty (30) calendar days of being hired into a classification_covered by this MOA. (c) To qualifY for deduction of the Charity Fee, the employee must certif'yto the Union and City that helshe is a member of a bona fide religious body or sect that has historically held conscientious objection to joining or financially supporting public employee organizations. The employee is required to submit to the City and the Page 2 of 64 . j , , -4 , --i Union a notarized letter signed by an official of the bona fide religion, body, or sect certifying that person's membership. Upon request, the City shall provide to the Union a report of payments made by employees that qualify for the Charity Fee option in this subsection. I (d) The deductions in this Section shall not apply during any period where an employee is in an unpaid statns. I (e) Involuntary Service Fee Deduction Process: The City shall deduct a service fee from the salary of each bargaining unit member who has not authorized a dues deduction, service fee deduction or charity fee in 'lVTiting within the time stated in this Section, above. The Union certifies that it has consulted with knowledgeable legal counsel and has thereby determined that this involuntary service fee deduction process satisfies aU 'constitutional and statutory requirements. (f) Agency shop may be rescinded only in accordance with the provision of state law. (g) Indemnification, Defense and Hold Harmless: Union agrees to indemnifY and hold harmless the City and all officials, employees, and agents acting on its behalf, from any and all claims, actions, damages, costs, or expenses including all attorney's fees and costs of defense in actions against the City, its officials, employees or agents as a result of actions taken or not taken by the City pursuant to the Agency Shop Ap:angement. r (h) Sign-up forms for deduction of union dues, service fees and charity fees shall be provided by the Union and approved by the City. Section 3 -Documentation. The City shall supply the Union with: (a) arnonthly electronic file of the names, member/fee payer designation" addresses, classifications, monthly base pay, pay period number, Committee on Political Education (COPE) listed separately and last four digits of the Social Security number of all bargaining unit employees except those who file written notice with the Human Resources Department objecting to release of addresses, in which case information will be transmitted without address; and (b) a list of bargaining unit new hires, terminations and retirements which occurred during the previous month. The Union shall supply the City, and as applicable: the employees, with: (a) documentation required by Govemment Code Section 3502.5 (1)., Page 3 0164 Section 4 -Payroll Dt@tQtion. The City shall deduct Union membership dues, service fees, charity fees, and any other mutually agreed upon payroll deduction, which may include voluntary COPE check-off, from the bi-weekly pay of bargaining unit employees. The dues/fees deduction must be authorized in writing by the employee on an authorization fonn acceptable to the City and the Union, except as provided in Section2(e), above. The dues deduction form shall include a check box for those employees who wish the Union to receive notification in the event of unsatisfactory work:, conduct, or disciplinary action taken pursuant to Article xx. City shall remit the deducted dues or fees to the Union as soon as possible after deduction. I §ection 5 -Bulletin Boards and Departmental Mail. The UniQn shall have access to inter­ office mail, existing bulletin l:Joards in unit employee work areas, and existing Union-paid telephone answering device for the purpose of posting, transmitting, or distributing notice or announcements including notices of social events, recreational events, Union membership meetings, results of elections and reports of minutes of Union meetings. Any other material must have prior approval of the Human Resources Office. Action on approval will be taken within 24 hours of submission: The Union may send email messages only for the purposes set forth above. The IT Department will malntain the SBIU list and keep it current. The Union access to email is based on the following conditions: 1) emaiIs to the SBIU list will be copied to the Human Resource Director at distribution; 2) emails to the SEIU list will only be sent by the SEIU Chapter Chair, Vice Chair, Chief Steward (s) or Secretary, 3) a: maximum of 52 emails may be sent per year and a maximum of 12 emaiIs may be sent by the SEIU Chapter Secretary. Section 6 -Acoess to Union Representatives. Representatives of the Union are authorized access to City work locations for the purpose of conducting business.within the scope of representation, provided that no disruption of work is involved and the business transacted is other than recrniting of members or collecting of dues, and the representative must notilj the Human Resources Department Office prior to entering the work location. Section 7 • Meeting Places. The Union shall have the right to reserve City meeting and conference rooms for use during lunch periods or other non-working hours. Such meeting places will be made available in conformity with City's regulations and subject to the limitations of prior commitment. Section 8 -NQtification to the Uniol!. (a) General. The Union shall be infonned in advance in writing by Management before any proposed changes not covered by this Memorandum of Agreement are made in benefits, working conditions, or other terms and conditions of employment which require meet and confer or meet and consult process. (b) Change in City's Financial Situation. Should the City's financial situation deteriorate and the possibility oflayoffs result, the City Manager will give prior notice to and consult with the Union prior to recommending any layoffs to the City Council. Page 4 of64 1. (c) Vacancies and Temporary Personnel. The City agrees to notify SEIU Local 521 in writing when any irregular, temporary, hourly, provisional, special or extra help employee who consistently performs work typical of the SEIU Local 521 bargaining unit exceeds),OOO,hours of work withina IS-month period. The City agrees to notifY SEIU Local 521 in writing when any position covered by this agreement is left vacant for more than 60 days. Through a separate meet and confer process, the City and Union will develop a way to convert long term, ongoing temporary-hourly positions to regular status. The City and Union will meet and confer l'llgarding 'wages, benefits and terms and conditions of work. Section 9 -Union Logo. All materials and documents produced on Itek and metal plates, by the City print and reproduction shop, shall carry the Union label on the inside of covers or title pages in accordance with customary printing trades practices. Section 10 -Public Notice. The City shan make available to the Utrion in a timely manner copies of all City Council meeting agendas, minutes and schedule of meetings. These materials may be picked up ,at the City Clerk's Office during business hours. Section 11-Use of Agency Reports. Upon request, the City sha:ll provide to the Union reports by depertment on the use of agency temporaries filling representation unit vacant positions, or doing work similar to that of representation unit classifications. Section 12 -Job Postings. The City shall incorporate the requirements of this Article when publicizing job announcements for classifications covered by this Memorandum of Agreement. Section 13 -Contracting Oirt. The City through the labor management process will kept the Union advised of the status of the budget process, including any formal budget proposal involving the contracting out of SElU bargaining unit work traditionally performed by bargaining unit members at least thirty (30) days prior to the release of the City Manager's proposed budget. The City will nntifythe Union in writing at least ninety (90) days prior to contracting work which has been traditionally performed by bargaining unit members, where such contracting will result in layoff or permanent reduction in llours. Within the ninety (90) day period of contracting out, both parties may offer alternatives to contracting out and meet and confer on the impact of such contracting out of a bargaining unit employee work. The City will notifY the Union in writing when contracting out work which has been traditionally performed by bargaining unit workers, where such contracting out is expected to replace a laid off bargaining unit position that has been eliminated within_ninety (90) days prior to the date of the planned contract work. When feasible, the City will provide such notice prior to the beginning date of the planned contract work. The City will meet with the Union upon request to discuss alternatives. This provision does not apply to the filling of temporary vacancies of twelve (12) months or less duration. The City will provide the Union with a biannual list by depertment of all contract workers or vendors who are contracted by the City who Page Sof64 -I , perfonn work for the City. The City will make a reasonable effort to identify the names of the vendors on the list and the nature of the work provided by each vendor. ARTICLE IV -STEWARDS Section I -Union Officers. The Union agrees to notify the Director of Human Resources of those individnals designated as Union officers and stewards who receive and investigate grievances and represent employees before Management. Alternates may be designated to perform steward functions during the absences or unavailability ofthe steward. . Section 2 -Number of Stewards. The number of stewards designated by the Union: at a given time shall not exceed thirty-five (35). Section 3 -Release Time. It is agr~ed that, as long as there is prior notice as specified below to the Supervisor with no disruption of work, stewards shall be allowed reasonable release time away from their work duties, without loss of pay, to represent a unit employee or employees on grievances or matters within the scope of representation, including: (a) A meeting of the steward and an employee, or employees of that unit related to a grievance. (b) A meeting with Management. (c) Investigation and preparation of grievances. Grievances may be transmitted on City time. All steward release time shall be reported on time cards. Section 4 -Advance Notification Before Leaying Work Location. The Union agrees that the steward shall give no less than one (1) full business day advance notification to his/her supervisor before leaving the work location, except in those cases involving an unforeseeable circumstance that requires immediate union representation where advance notice cannot be. given or when the relevant supervisor otherwise allows less notice. A supervisor may deny such a request for release from duty if the effIJlleyee steward is needed to ensure timely real time availaaility delivery of the-services that the efll:llleyeesteward is provid~ for the public or internal City customers and l!!l.other employees-arewho Het QVaHaele ea a straight time llaBis that nonnally provides such il~mgeservices is not available on a straight time basis to relieve the steward, or in a bona fide emergency. If such denial occurs, the union may request the release of another of its designated stewards to perfonn the representation duties involved. Such request shall be processed in accordance with the tenns set forth in this section exc~t that the requirement for a full business day advance notice to the replacement representative's supervisor shall not apply. Nothing herein shall preclude the City from rescheduling a meeting it bas scheduled, to facilitate the attendance of a steward who has n;'quested Page6of64 release if, .in the City's judgment, such change can be undertaken wilhout undermining the objectives of the m~eting. Section 5 -Release Time, Three Union officers, who are City employees, shall be allowed a reasonable amount of release time off for purposes of meeting and conferring or meeting and consulting on matters within the scope of representation. All such time will be reported on timecards. Section 6 -Designated Union Space. Union stewards may utilize space in assigned desks for storage of Union materials. In the event stewards are not assigned desks the City will provide locker or other mutually agreeable space for storage of Union materials. Section 7-Union Officers and Release Time. Six union officers, who are City employees shall be allowed a reasonable amount of release time off for monthly LaborlManagement Meetings. ARTICLE V -REDUCTION IN FORCE I Section 1-Attrition. In the event of reductions in force, they shall be accomplished wherever possible through attrition . . , Section 2 -Advance Notice. When the City determines thatlayoffs are innninent resulting from reduction in force within the representation unit,the City will give the Union such advance notice as is reasonable under the circumstances. The notice will indicate the departments and divisions which will be affected and the circumstances requiring the layoffs. The City will furnish the Union with a current representation unit . I seniority list with notice of layoff. I Section 3 -Order of Layoff. If the work force is reduced within a department, division, or office for reasons of change in duties or organization, abolition of position, shortage of work or funds, or completion of work, employees \vith the shortest length of service will be laid off first so long as employees retained are fully qualified, trained, and capable of performing remaining work Length of service for the purpose of this article will be based on current service hire date of record in a regular classification with no adjustment for leaves of absence. Length of service ties will be determined by lot in a method agreeable to both parties. Employees laid off due to the above reasons will be given written notice at least thlrty days prior to the reduction in force. A copy of such notice will be given to the Union. Such employees shaH be offered priority employment rights to regular positions which are requisitioned and for which the employees are qualified for . a period beginning with notification and ending sixty (60) days following the reduction in force. Employees transferred or reclassified under this section will be assigned to the step in the new classification salary range closest to the employee's salary range at the time of reclassification. Employees laid off pursuant to this section shall receive the balance of all regular City compensation owed and severance pay equal to one month's sa1ary at the employee's final rate of pay at tennination. This does not include any amounts payable under Article V, Section 6, or PERS contribution refunds, if any. Page 10f64 .I Section 4 -SenioritylBumping Rights. Employees identified for layoff who have seniority (bumping) rights to their current or previously held classifications within the representation unit must declare their intention to exercise these rights in writing and submit to the Human Resources Department within seven (7) working days after written notification of layoff, otherwise bumping rights will automatically terminate. Bumping may occur within the representation unit, only to the lea,,'i senior incumbent of the current or a previously held classification. To bump, the employee must be fully qualified, trained, and perfonn all work in the. For purposes of this section of the Agreement. the term "working days" shall mean Mondays through Fridays, exclusive of holidays. Section 5 -Re-Employment Ust. The nemes of employees laid off or who through bumping changed classification in accordance with the provisions of this Article shall be entered upon a re-employment list in seniority order. The employee with the greatest seniority on the re-employment list, including those who exercised their bumping rights, shall be offered reinstatement first. Such notice of reinstatement sh.a1l be in writing with a copy to the employee, Union and Chapter Chair. If a laid off employee waives reinstatement or fails to respond within ten (10) working days of receipt of the notice, the employee sh.a1l be removed from the reemployment list. The person with the highest seniority including those who exerciSed their bumping rights on a re,employment list for a particular classification when a vacancy exists in that classification shall be offered the appointment. Nemes shall be carried on a re-employment list for a period of two (2) years from the date of separation from City services ot change of classification through bumping. Upon re-employment within the two-year period, tile employee's hire date of record at the time of layoff will be reinstated. Section 6 -Sick Leave Balances. Employees laid off pursuant to Section 2 who are reinstated to a regular position within sixty (60) days shall retain the sick leave balance they had at the time of layoff, unless they have received a sick leave payoff in accordance with Article XII. . Section 7 -Hourly Employees Perfonning Duties. No representation unit employee will be laid off or remain on a re-employment list when hourly employees are performing substantially all the duties of the classification of the employee receiving a layoff notice or on a re-employment list. This provision shall not be applied to hourly positions which have been traditionally used for seasonal and part-time work: ARTICLE VI -PERSONNEL ACTIONS I Section 1 -Probation. Each new regular or part-time employee shall serve a probationary period of six (6) months, (twelve (12) months for the classifications of Public Safety Dispatcher, Chief Public Safety Dispatcher, Animal Control Officer, Communications Tech, Chief Communications Tech, Communlty Services Officer, Court Liaison Officer, Crime Analyst, Police Records Speciallst, Property Evidence Technician, and Veterinarian Tech), commencing with the fust day ofhis/her employment. The probationary period shall be regarded as a part of the testing process and shall be utilized Page 8 of 64 , -i -~ for closely observing the employee's work, for securing the effective adjustment of a new employee to hislher position, and for rejecting any probationary employee whose performance does not meet the acceptable standards of work. At least one written performance appraisal will be given each probationary employee on or before expiration of the probationary period. Normally, this appraisal will be given at the end of the third month. In the event of termination prior to successful completion ofthe probationary period, such terminated employee shall be given written notice ofllislher termination with the reasons for the termination stated therein. The Human Resources Department shall, upon request, afford an interview in a timely fashion to the terminated employee for discussion of the reasons for termination. The employee may, upon request, be accompanied by a Union representative. The interview shall not be deemed a hearing nor shall it obligate me City to reconsider or alter the termination action. The parties agree that probationary employees shall have all rights under this Memorandum of Agreement, including full and complete access to the grievance procedure, save and except for instances of suspension, demotion or termination. Section 2 -Personnel Evaluations. Personnel evaluations will be given to employees as scheduled by Management. Personnel evaluations are not appealable through the grievance procedure but, in the event of disagreement over content, the employee may request a review of the evaluation with the next higher level of Management, in consultation with the Human Resources Department. For purposes of this review, the employee may be represented by the Union. Decisions regarding evaluation appeal shall be made in writing within ten (10) working days following the review meeting. Section 3 -Personnel Files. Records of all disciplinary actions shall be kept in the central personnel file. Employees shall be entitled to sign and date all action forms in their personnel files. Employees are entitled to review their personnel files upon written request or to authorize, in writing, review by their Union representatives. An employee or the Union shall be allowed, upon reasonable request, copies of materials in an employee's personnel file relating to a grievance. Records of disciplinary actions, including references in a performance evaluation, shall be removed from a personnel file upon written request by the employee or in the normal process of file review after a period of three years, or sooner as mutually agreed by Management and the employee. Section 4 -Release of Information. The City will only release information to creditors or other persons upon prior identification of the inquirer and acceptable reasons for the inquiry. Information then given from personnel files is limited to verification of . employment, length of employment and verification and disclosure of salary range information. Release of more specific information may be authorized by the employee. Section 5 -Promotional Opportunities. (a) Posting. Promotional opportunities for classifications within the representation unit will lie posted for at least ten (10) working days (Monday through Friday) prior to selection. Outside recruitment may be used for promotional openings and may begin at the time of posting, or any time thereafter. If, however, there are three or more P~ge 9 of64 qualified internal candidates within the department where the vacancy occurs,. and those candidates successfully complete the selection process, outside candidates will not be considered. (b) Internal Candidate Eligibility. All non-probationary representation unit employees are eligible to apply for posted promotional opportunities, except that Management may waive this requirement for all probationary employees within the department where the promotional opportunity occurs. (c) Selection. The selection procedure for each promotional opening will be determined and administered by the Human Resources Department in consultation with the requisitioning department. Selection procedure and job description mformation will be available at the Human Resources Office at the time of posting. Efforts will be made to standardize tests and procedures where standardization is feasible and appropriate. Any tests used shall be reasonably predictive of success in the classification, and tests not be biased with respect to race, sex, sexual orientation, religion, creed, political affiliation, color, national origin, ancestry, or age. Selection procedures may include any or all of the following phases: (1) Application. Both inside and outside candidates must complete a City of Palo Alto application form specified by the Human Resources Department. Applications must be submitted to the Human Resources Office. (2) Screening. Applications will be screened by the Human Resources Department to ascertain whether candidates meet minimum requirements as outlined in the job description. Internal candidates deemed not to meet minimum requirements may submit additional qualification information writing within three working days of notification of requirement deficiency. . (3) Performance Testing. Performance tests, such as typing, machinery or vehicle operation, skills demonstration, physical agility, etc., will be qualifying.· Pass-fail points will be announced in advance for qualifying tests. If requested in writing prior to the test, performance test may be witnessed by Union steward. (4) Written Tests. Written achievement or aptitude tests will be qualifying. Pass-fail points will be announced in advance for qualifying tests. (5) Interviews, Appraisals. Interviews may be conducted individually or by interview boards and will be qualifying. Interview boards shall be composed of qualified and unbiased people. Where interview boards are used, Menagement will include at least one bargaining unit employee on each board. If individual interview or an interview board is used, a majority of the individuals or board members must recommend a candidate in order fur the candidate to qualify for appoin1ment. Performance appraisals written by candidates' supervisors may be used as indicated in the selection procedure. Page 10 of 64 (d) Recommended Candidates. Candidates who successfully complete all phases of the selection procedure will be recommended to the appointing authority. (e) Seniority. Seniority, for purposes of this Article, will be based on current service hire date of record in a regular classification with no adjustment for leaves of absence. Seniority ties will be determined in favor of the employee with the lowest employee number last four digits. Exceptions to this subsection may be established by mutual agreement on a departmental or divisional basis. Such exceptions are listed in Appendix G. (±) Appointment. The appointing authority will make appointments from among those . recommended candidates who are most qualified as determined by objective review of selection procedure results and background materials. Where appointments are made from only internal candidates who are equally qualified as determined by objective review of selection procedure results and past performance, seniority will be the determining factor in promotional appointments. (g) Violations. Any violation of this Article may be appealed to the Human Resourees Director in Step m of the grievance procedure. Section 6 -Rights, Unit employees applying for a vacant equal or lower paying position sha1Ihave the same rights as unit employees applying for a promotion. Section 7 -Apprentice Positions. (a) The City shall establish apprentice positions wherever feasible. Length of apprenticeship, tYPe of training, and pay levels shall be by mutual agreement. Where possible, apprentice positions will underfill regular positions so that incumbents may automatically progress to the classification for which they are training upon successful completion of apprenticeship. The City will meet and confer with the Union before adding any new apprenticeship programs during the term of this agreement. All apprenticeship programs are listed in Appendix B. Section 8 -Rotation. fn assigning employees to regular or special shifts, transfer, standby, overtime, or vacation selection, ability to perform the work, length of service andlor equitable rotation shall determine the assigmnents, fn accordance with this provision, more definitive rules may be arranged by mutual agreement oithe Union and individual City departments. ARTICLE vn -PAY RATES AND PRACTICES Section 1. Salarv. The base salary rates and ranges for job classifications covered by this bargaining unit are as set forth in Appendix A attached hereto. Section 2 -Step Increases. Merit advancements from the first salary step to,the second salary step shall be granted at six-month intervals and between second and subsequent steps at one-year intervals, if the affected employee has demonstrated continued improvement and efficient and effective Page 11 0164 service. For the purpose of detennining step time rcqlrirements, time will commeJ;lce on the frrst day of the month coinciding with or following entrance onto a salary step. Step increases shall be effective on the first day of the payroll period in which the time requirements have been met. SectiQ!l 3·-Working Out of Classification. The term "working out of classification" is defmed as a Management authorized full-time assignment to a budgeted position on a temporary basis wherein all significant duties are performed by an individual holding a classification within a lower compensation range. Pay for working out of classification shall be as follows: (a) Employees appointed to an "out of classification" will receive acting pay within the range of the higher classification beginning the frrst day of the assignment and shall be paid for all hours worked in the higher classification provided employee works a minimum off our (4) hours. Where out-of-class appointments last for more than 90 days, and whenever feasible, out-of-cfass appointment will be rotated among qualified interested employees in the work group. Employees will receive 5% premium pay for all assigned out of class pay for work within SEn; Classifications with the exception oflead assignments where the out of class pay will result in a 7% premium pay. Out-of-c1assification provisions do not apply to work assignments performed in connection with specific predetermined apprenticeship or training programs, or declared conditions of public peril andlor disaster. Section 4 -Classification Changes. (a) During the course of this agreement, the Union and affected employees shall be notified in advance of any contemplated changes in classification description, wage range or steps. Such changes shall be subject to the meet and confer process. Such meet and confer process shall be concluded within no more than thirty (30) days following delivery of the City's notice to the Union. If the Union and the City cannot reach agreement on the appropriate pay level from ajob so reclassified, the Union may, within ten (10) City business days followiog the conclusion ofthe meet and confer process described above by delivery of written notice to the Human Resources Director, refer the dispute over the proposed wage range or steps to arbitration at Step N of the Grievance Procedure set forth at Article XIX of this Memorandum of Agreement. Section 5-Reclassification Reguests. (a) An employee or hislher representative may request in writing a re-evaluation of hislher job based on significant pennanent changes in job content or significant discrepancies between job content and classification description. The request must be in writing, contain justification and may be made only on an annual basis during the period of September 10 through October 10, A statement by management that a job reevaluation request will be submitted with the departmental budget does not relieve an employee froni the responsibility of submitting hislher own request during this Page 1Z of64 I. period. The HUIl1all Resources Director or his or her designee will initially respond to such requests within ninety (90) calendar days by notice to the employee and the union; however, this timeline may be extended if necessary. Such response shall include any reclassification to a different classification or changes in description that the City believes are warranted and any related changes in applicable pay range or steps. Ifmeetings are held, the employee may request representation. If a reclassification is approved and results in an increase in salary, it shall be retroactive to the date the Employee or Union fIled the request for the reclassification. (b) If the employee or Union disagrees with the accuracy of the description of duties resulting from the study conducted pursuant to subsection (a) of this Section or with the wage range or steps assigned by the City as a result of the study; the employee or Union may, within ten (10) City business days of delivery of notice of such determination, appeal such decision under step IV of Article XIX, Grievance Procedure. (c) In a dispute under Section 4(a) or section 5(b) above, the arbitrator shall render bis or her decision on the appropriate wage range or steps within twenty-one (21) days after the initial hearing dare. The same time line will be observed for disputes over the accuracy of the revised classification description. The parties will notify the arbitrator of this deadline at the time of the arbitrator's selection. In reaching a decision on wage range and steps under Section 4(a) or 5(b) above, the arbitrator shall base his or her award on the factors traditionally taken into account in the establishment of compensation; When deciding a dispute over the accuracy of the revised classification description under section 5(b) above, the arbitrator shall identify the modifications of the pre-existing classification necessary to accurately reflect the permanent changes, if any, that have been implemented. Upon receipt of the arbittator's award, the City shall implement the revised classification and wage range. or steps as provided in the award except as provided under subsection 5( c) of this section below. Not withstanding an arbitrator's award pursuant to any appeal process, the City retains the right to forego implementing the changes and the proposed changes shaH revert to the status quo as it existed before those changes in duties occurred or were proposed. (d) An employee may submit a request for reclassification for the same classification no more than once every twenty~four (24) months. . Sectio.q6 -Advance ofVacatiQJl Pay. Vacation pay shall be made available in advance of regular payday, provided that employee requests such advance in writing to the Finance Department at least two weeks prior to bislher vacation date. The employee's supervisor mllst verifY vacation date on the request. Section 7..::Assignment to a Lead Polrition. All vacancies in lead positions shall be filled in accordance with Article VI, Section 5. The pay range for the lead position shall be seven percent above the pay step of the highest paid employee on the crew. Departmental exceptions for filling lead positions on a rotational basis for ttaining and Page 13 of64 , "1 I development purposes may be arranged by mutual agreement of the Union and individual City departments. Current exceptions are listed in Appendix C. Section 8 -Realignments and Survey Data Base. (a) Management and the Union have agreed to a compensation survey data base structure which identifies specific benchmark classifications for job families, classifications within the job families of each benchmark classification, survey agencies and survey classification matches. Survey Cities include: Alameda Berkeley Daly City Fremont Hayward Mountain View Redwood City San Jose San Mateo Santa Clara S. San Francisco . Sunnyvale If. in the opinion of the Human Resources Director (or designee), the employer list will not permit the production of a survey report that includes data from at least four (4) employers that employ employees in a classification comparable to the classification surveyed by the City, the Human Resources Director (or designee) will attelllpt to identify the other employers inIhe relevant recmitment area that employ workers in a comparable classification so that data from at least five (5) surveyed employers wilt be included in the study. iffeasible. Such employer may include any public or private employer. . The database is intended to provide one source of information concerning how the compensation paid to employees in bargaining unit job claasifications compares to that paid by other employers. The City will update the survey database and send the Union a copy six weeks before expiration of this agreement. This survey will be considered in connection with special adjustment proposals in successor agreement negotiations. By agreeing to a survey database, neither Union nor Management is 1ll1der obligation to propose or agree to special adjustments. Within ninety (90) days after the ratification and signing of this Memorandum of Agreement by the Parties hereto, the City will conduct a compensation survey for the following classifications and r~e results to the Union: Linepel'son/Cablesplicer-Apprentice Lineperson/Owle§plicer LinepersoniCablesplicer-Lead Compliance Tech Compliance Tech-Lead ARTICLE vrn -BOERS OF WORK, OVERTIME, PREMIUM PAY SectiQn 1-Work Week and Work Day. The standard workday for regular employees shall be eight hours to be worked within a maximum of nine hours (five-day work week) or ten hours to be worked within a maximum of eleven (four-day work week) or nine PBge140f64 , ; --; i -, hours to be worked within a maximum of ten for four days with a fifth day of four hours (four and one·haIf day work week); or, within a fourteen-day period, nine hours to be worked within a maximum of ten hours for one day and eight hours to be worked within a maximum often hours for one day, with the work week scheduled to begin so that forty hours are worked within each seven days_of the fourteen-day period (9/80 plan, with forty-hour work weeks), or any other schedule that results in a 40-hour work week, or fits within the parameters of an FLSA 2080 Plan. The "9/80 plan" may not be used in any application that requires entitlement to FLSA overtime for working the regular work week. With the exception ofthe "9/80 plan" as described above and the 4/11 Dispatcher Plan, the standard work week shall be forty hours to be, worked within five consecutive days. Additional exceptions to the above are listed in Appendix D. The Union shall be rlotified of any further exceptions to this section in accordahce with Article III, Section 8. The City and the Union agree that the availability of altematelflexible work schedules is a valuable benefit in that they promote job satisfaction while also reducing traffic congestion and air pollution. During the term of this agreement, employees, subject to the conditions of their job assignment, may propose an alternate work schedule as listed un4er this Section. Such proposals must be made to the department head through the inunediate supervisor. Serious consideration will be given to the feasibility and productivity of such proposals, however Management retains the right to determine scheduling needs. Section 2 -Overtime Work. (a) Overtime work for all unit employees shall be defmed as any time worked beyond the standard workday or beyond the standard work week. Emergency overtime is defined as unplanned overtime work arising out of situations involving real'loss of service or property or personal danger. Emergency overtime does not include: ' (i) overtime work resulting from persounel replacement for purposes of maintaining scheduled staffing; (ii) overtime work which is planned in advance; (iii) overtime work resulting from being held over for up to four hours to fmish work performed during the regular shift. (b) Compensation to employees working overtime will be in the form of additional pay at the rate of one and one-half times. Two times regular rate will be paid for billable customer convenience overtime and emergency overtime as defined in subsection (a) above) the employee's applicable hourly salary with the exception that an employee may request and, upon approval, be granted compensatory time off at the rate of one and one-half hours for each hour of overtime worked, subject to the limitations of applicable sta1e and federal laws. In the event compensatory time off is used as the method of compensating for Overtime, the time off will be taken prior to the end of , the quarter following the quarter in which the overtime has been worked. In the event Pagel50f64 I 1 the employee is denied this provision, helshe will be compensated in pay for such . time at the appropriate rate specified by these sections, Or at the employee's option, the earned compensatory time will be added to the employee's vacation balance, ( c) All time for which pay is received shall count as hours actually worked for the computation of regular overtime pay; however, non-productive time will not be included in computation of any additional FLSA premiums, (d) When an employee is required to work 6 or more hours of overtime (either emergency or pre-arranged) during the 16 hour period immediately preceding the beginuing of the employee's regular shift ona workday, the employee shall be entitled to an eight­ hour rest period before returning to work If the rest period overlaps into the second half of the work day, the employee may be given (with supervisor approval) the remaining time off (up to a maximum of3 hours) at the stralghttime rate of pay, Any portion of the rest period falling within the employee's work shift will be considered as hours worked and compensated at the straight time rate, (e) If non-emergeocy overtime is canceled without at least 40 clock hours notice, the City shall pay the affected employees two (2) hours' pay at time and one-half. (1) Employees working overtime who are too fatigued to continue or retorn to work, for safety reasons will be released from duty without compensation, Section 3 -Work Shifts. All employees shall be assigned to work shifts with schedwed starting and quitting times; Should conditions necessitate a change in starting and quitting times, the Union will be notified ten (10) working days in advance and permitted to discuss such changes with the City. This, however, shall not preclude the City's right to effect schedwe changes dictated by operational necessity. This section does not apply to overtime scheduling, Section 4 -City-Paid Meals. (a) Emergency overtime meals. Forpurposes of this section, emergency overtime is defined as unplanned overtime arising out of situations involving real loss of service or property or personal danger. The City agrees to reimburse for meals in the amount of $1 0 for breakfast, $15 for lunch, and $20 for dinner and will provide meals in the following emergency overtime situations: (1) When an employee is called back and is on duty for a period of three consecutive hours, and theJ;eafter at intervals of five hours, but not more than six hours, until the continuous overtime assignment ends. OR, (2) When an employee is held over on duty so that hislher overtime assigument extends two hours after shift end, and thereafter at intervals of five hours, but not more than six hours, until the continuous overtime assignment ends, Page 16of64 , [ I OR, (3) When an employee is called out two hours or more before a: regularly scheduled day shift and works the regularly scheduled shift, helshe will be entitled to breakfast and lunch. Lunches will be consumed on employee's own time. No in­ lieu pay will be made for meals not taken. This sub-section does not apply if already covered in Section 4(a)(I) above. (4) When recalled two hours or less after the end of a regular shift, uuless !iSSigned to standby. (b) Non-emergency overtime meals. The City will provide meals for personnel assigned to non-emergency overtime work where the assignment extends more than two hours after the regular or overtime shift end and at intervals of five hours thereafter. (c) With, regard to (a) and (b) above, the City agrees to reimburse for meals in the amount of$lO for breakfast, $15 for lunch, and $20 for dinner. Where possible, the City will arrange purchase orders at mutually agreeable restaurants. The time neeessaril y taken to consume a meal provided under this section shall be considered as time worked to a maximum of one hour, except as noted in (a) (3). (d) With regard to (a) and (b) above, in the event an employee is to be provided a meal or meals pursuant to this section!ll1d such meal(s) are not provided due to working conditions, the employee shall have the option of receiving for each meal not provided an additional one hour of overtime compensation in lieu of such meal. This hour will not be considered as time worked or part of the rest period, but will be applied to qualifY for the rest period .. (e) Emergency overtime meals for Public Safety Dispatcbers. The Police Department will provide meals to employees in an emergency overtime situation involving real or potential loss of service or personal danger. (1) When an employee is called back and is on duty for a period of three consecutive hours, and 1hereafter at intervals of five hours, but not more than six hours, until the continuous overtime assignment ends. (2) When an employee isheid over on duty so that hislher overtime assignment extends two hours after shift end, and thereafter at intervals of five hours, but not more than six hours, until the continuous overtime assignment ends. (3) When an employee is called out two hours or more before a regularly scheduled shift. The employee will be entitled to two meals, the second meal will be consumed on the employee's own tUne. No in-lieu pay will be made for meals not taken. Page 17 of64 -i ; , , . -j I (4) When recalled two hours or less after the end of a regular shift, unless assigned to standby. (1) Non-emergency overtime meals for Public Safety Dispatchers. The Police Department will provide meals to employees in non-emergency situations where the . assignment extends more than two hours after the regular or overtime shift end and at intervals of five hours thereafter. If the City is unable to provide a meal, the City agrees to reimburse for meals in the amount of$10 for breakia.>'t, $15 for lunch, and $20 for dinner. This policy only applies when an employee is held over, either voluntary or mandated, on duty beyond a scheduled regular or overtime shift. Section 5 -Break Periods. All employees shall be granted a break period or coffee break: limited to 15 minutes during each four hours of work. Departments may make reasonable rules concerning break period scheduling. Break periods not taken shall be waived. I Section 6-Clean-Up Time. All employees whose work causes their person or clothing to become soiled shall be provided )'Vith reasonable time before lunch and at shift end for wash-up purposes. . Section 7 -Standbv Pay, Cllll-Out Pay. (a) Standby Compensation. Employees performing standby duty shall be compensated at the daily rates established below: Monday through Friday $50 Saturday, Sunday, Holidays $73 (b) Minimum Call-Out Pay. Employees not otherwise excluded from receiving overtime pay who are called out to perform work shall be compensated for at least two hours' pay from the time of the call-out for each occurrence at the appropriate overtime rate. The two-hour minimum does not apply to employees called out to work while earning pay for being in a standby status unless called out to perform billable customer convenience work in which case the two-hour minimum will apply. Section 8 -Night Shift Premiwn. Night shift premium of$L44 per hour shall be paid to employees for work performed between 6:00 p.m. and 8:00 a.m. This premium shall not apply to an employee whose schedule does not quaiifY for shift differential who requests an earlier scheduled start time that would otherwise qualify the employee for the premium. A minimum of two hours must be worked between 6 p.m. and 8:00 a.m. to qualify for the premium. Employees who regularly work night shifts shall receive appropriate night shift premiums, relating to night shift hours worked, in addition to base pay for holidays, sick leave and vacation. Night shift premium does not apply for overtime situations unless overtime is approved to replace all employee who would have otherwise received a night shift premium. Page 18 of 64 I Section 9 -Bilingual Premium. $35 per pay period shall be paid to a. bilingual employee whose abilities have been detennined by the Human Resource Director as qualifying to fill positions requiring bilingual speaking and/or writing ability when the employee regularly performs such duties. The Human Resource Director will determine the number, timing, location and duration of the assignments receiving the additional pay provided herein and which languages are needed. Sign language shall be recognized as a bilingual skill under this Article. Disagreements over the designation of positions will be referred first to the Labor Management Committee. If a disagreement still exists it will be referred to the Grievance Procedure. Section 10 -Communications Training Officer (CTO) Compensation. Public Safety Dispatchers and Chief Public Safety DispatcherS identified by Management to work as a Police Officers Standards and Training (POS1) certified CTO will be compensated at a premium pay rate offive (5) percent. The premium pay is provided only for those hours spent as a CTO training a probationary dispatcher while on-duty in the Dispatch Center. ARTICLE IX -UNIFORMS AND TOOL ALLOWANCES. Section 1 -Uniforms. (a) The City will provide uniforms, coveralls or shop coats on a weeIdy basis, or as otherwise furnished, for the following jobs andlor classifications and any positions necessary or required as determined by management. Animal Control Officer Assistant Storekeeper Auto Service Mechanic Building Service Perscn -Lead Building Service Person Cathodic Technician Cement Finisher· Lead Cement Finisher Chemist Community ServiceOfficer 0 Electrical Assistant Electrician Apprentice Electrician Lead Engineering Technician III -Refuse Equipment Operator . Equipment Operator -Lead Facilities Carpenter Facilities Electrician Facilities Maintenance -Lcad Facilities Mechanic Facilities Painter Field Serviceperson Page 19 of 64 --, i Gas System Shop/Field Repairer Gas System Technician I Gas System Technician II Golf Course Equipment Mechanic Golf Course Maintenance Person Heavy Equipment Operator -Lead Heavy Equipment Operator Industrial Waste Inspector Industrial Waste Investigator Instrumentation Electrician Laboratory Technician, Water Quality Control Line Person/Cable Splicer . Line Person/Cable Splicer -Lead Mail Services Specialist Maintenance Mechanic Maintenance Mechanic, Water Quaiity Control Mechanical Unit Repairer Meter Reader Meter Reader -Lead Mobile Service Technician Motor Equipment Mechanic -Lead Motor Equipment Mechanic Offset Equipment Operator -Lead Offset Equipment Operator Pmk Maintenance Assistant Parking Enforcement Officer Park Maintenance Person Park Crew -Lead Park Maintenance -Lead Park Ranger Parks & Open Space Assistant Police Records Specialist Refuse Disposal Attendant Senior Chemist Senior Industrial Waste Inspector Senior Instrumentation Technician Senior Opemtor, Water Quality Control Senior Mechanic, Water Quality Control Senior Park Ranger Sprinkler System Repairer Street Maintenance Assistant Storekeeper Storekeeper-Lead Street Sweeper Operator Traffic Control Maintainer -Lead Page 20 of64 I T~affic Control Maintainer II Traffic Control Maintainer I Tree Trimmer-Line Clearer Tree Maintenance Assistant Tree Trimmer-Line Clearer Assistant Tree Trimmer-Line Clearer -Lead Tree Maintenance Person Truck Driver Utilities Compliance Technician Utility Field Service Representative Utility InstalJerlRepairer Utility InstallerlRepairer Assistant Utility InstallerlRepairer -Lead Utility Locator Water Meter Cross Connection Technician Water System Operator -Lead Water System Operator Water System Operator I Water System Operator II Water Quality Control Plant Operator (b) Coveralls will be made available for occasional use as needed to protect clothing for the following classifications and any positions necessary or required as determined by management. Building Inspector Building Inspector Specialist Building Service Person -Lead Cable Splicer Assistant. Chief Electric Underground Inspector Electrical Assistent Electrician Facilities MechaniclPainter Heavy Equipment Operator LinepersoniCable Splicer Park Ranger Senior Park Ranger Utility Field Service Representative SpriDkler System Repairer Utility Installer Assistant Utility InstallerlRepairer Utility Insta11er/Repairer -Lead ( c) Employees required to wear uniforms shall be provided suitable change rooms and lockers where presently provided. PagellOf64 I (d) Employee clothing seriously damaged or destroyed in conjunction with an industrial injury will be reasonably replaced by the City. Any other claims alleging City liability may be flied with the City Attorney. (e) Except in the Utilities Division, the City will make avallable, as an alternative to the shirts currently provided under Section I (a), six (6) cotton polo shirts. Employees in . the Utilities Division will be provided with six (6) long-sleeve shirts and two polo shirts. ,Employees will be responsible for laundering the shirts. Damaged or otherwise unwearable shirts will be returned to the employee's supervisor and replaced by the City. (f) Employees are responsible for laundering Park Ranger and Senior Park Ranger uniforms. (g) The City will meet and confer with the Union regarding any mandated changes to uniforms. Section 2 -Tool Allowance. (a) Mechanics in Equipment lMaintenance, Park Malntenance Lead, Golf Course Equipment Mechanic, Motorized Equipment Mechanic and Mobile Service Technician shall be paid a tool allowance of$610 annually effective Juiy 1,2005. (b) All tool allowances shall be pald bi-weekly. I (c) Parties will meet and confer to determine if additional classifications require tool allowance. Section 3 -Shoe AIlow.@Ce. (a) Safety Shoes. The City shall reimburse employees 75 % of the cost of job-related safety shoes upon verification of such purchase by the employee. (b) Walking Shoes. The City will reimburse employees 75% of the cost of job-related VI'al.king shoes for any positions necessary or required as detennined by management including Meter Reader and Meter Reader-Lead, in an amount not to exceed $300.00 per year. A walking shoe is a durable work shoelboot (non steel-toed), is ankle supporting; oil, gas and slip resistant; waterproof or water resistant; lightweight and durable; and also provides hard surface cushioning. Section 4 • Certifications. The City has proposed to add certain certificationS to the list currently covered by this Memorandum of Agreement. The City and Union agree that their discussion of this proposal will likely require additional time and analysis beyond what will be otherwise needed for the parties to reachagreemenl Accordingly, the parties agree that the City and Union will continue to meet and confer on this City proposal following ratification and adoption of the MOA The parties agree to retain the Page 22 of 64 ·j . j current list of required certifications below and to attempt to address and resolve the issues raised by the City's proposal and endeavor to reach an agreement to the extent possible, within 60 days of the adoption of this contract. Employees who are required to maintain conunerciaI driver's licenses shall have costs for medical examinations pald by: (a) Completing an examination through their PEMHCA provider. After benefits have been paid by the PEMHCA provider, upon presentation of proper documentation, the City will reimburse any remaiuing costs, or (b) Completing an examination at the Workforce Medical clinic or other City.designated clinic. Employees may use pald leave for attend!lJ1ce at scheduled medical examinations. Employees shall btl permitted to use up to two hours of regular City­ paid time for attel1d!lJ1ce at biannual medical examinations. The scheduling of such time shall be pre!lJ1thorized by the employee's supervisor. (c) The City will pay special registration and/or certification thes which are required by Management. During the term of this agreement, the City and the Union may, by mutual agreement, review, add or delete classifications andlor required certifications listed below: Classification Bldg Inspec Spec Cathodic Technici!lJ1 Engineer Professional Equip Maint Serv Pers. Golf Course Malnt Pers. Indust. Waste Inspector Inspector Field Services, Utilities IDStallerlRepalrer Series Meeh. Unit Repairer Motor Equip Mechanic and Lead . Public Safety Dispatcher Requirement rCBO Certificate Corrosion Technician by the National Assoc. of Corrision Engineers Professional Engineer Cert. (fur step E) Forklift Operator Cert. (OSHA-approved) Qualified Applicators' License Backflow Prevention Device Tester D1 (DOH) D1 (DOH) Welding Certificate . EMS,ASE POST Basic Dispatcher POST Fire Academy EMD Page 23 of64 .. , -; Public Safety Dispatcher, Lead Sr Operator, WQC Surveyor, PW Tree Trimmer/Line Clearer Tree Trimmer/Line Clearer-Lead Uti! InstalllRep series Veterinarian Tech Water System Operator I Water System Operator II Senior, Water System Operator WQC Plant Oper I WQC Plant Oper II WQC Plant Oper Trainee Water Meter Cross­ Connection Tech POST Basic Dispatcher POST Fire Academy POST Supervision EMD Grade III Wastewater Treatment Plant OperCert. Licensed Land Surveyor Certified Tree Worker,andlor Qualified Line Clearance/Tree Trimmer Cert. (OSHA·approved) Certified Arborist Polyethylene Fusing Cert. Gas Operator Cert. (DOT) Animal Health Tech. Cert. Grade Dr -Water Distribution Operator Grade DII -Water Distribution Operator & Grade TIl Water Treatment Operator . Grade DIll -Water Distribution Operator & Grade TIll Water Treatment Operator Grade I Water Treatment Operator Cert. Grade II Water Treatment Operator Cert. Grade I Water Treatment Operator Cert. Backflow Prevention Tester Cert. Through these negotiations the City and the Union have agreed to add the following required certificates; . / 1. Inspector Field Services. Utilities D I (DOH) 2. InstallerlRepairer Series, Dl (DOH) 3. Public Safety Dispatcher, EMD 4. Lead Public Safety Dispatcher, EMD Page 24 of 64 (d) The City' will,pay for the Department of Motor Vehicles (DMV) licensing fees for all employees required to maintain a Commercial Driver:s License in accordance with the Califoruia Vehicle Code and applicable laws prescribed by the Department of Transportation. (e) Pipeline Welding Assignment. The City will provide a 4% increase in base compensation to Utility Installer-Repairer, Installer-Repairer Lead positions that meet DOT certification requirements and are assigned these duties. Utility Installer­ Repairer and Utility Installer-Repairer Lead positions that fail to maintain current certifications will liot receive the 4% increase. Positions assigned these duties and designated by Management to receive thill premium will not exceed five (5) Utility InstallerlRepairer and InstallerlRepairer Lead, If the certification is required in the job description, certification must be maintained. In accordance with their job description Maintenance Mechanics that are assigned to Water Gas Wastewater must maintain all required certifications and shaIl receive 4% increase to their base pay for pipeline welding. (I) Building Inspector. Upon successful completion of probationary requirements, the City will pay Building Inspectors a one (1) percent of base salary one-time payment for a certification above what is required. Employees may request one payment per year to a maximum of two payments in career. Payments will not exceed a maximum of one percent per year or two payments in a career. The Building Inspect()r Job Description specifies current requirements and the Union and City will agree on a list of appropriate certifications eligible for the premium. Premiums will not be paid if certification is not maintained. (g) Water and Wastewater System Operator Certification. Employees classified in the following positions: Water Quality Control Plant Operators I and II, Senior Operator Water Quality Control, Water System Operators I and II, Senior Water Systems Operator, Inspector, Field Services assigned to Utilities and Installer Repairer Job Series may be eligible to receive a I % base pay premium for certifications required by the Department of Health and/or the State Water Resources Control Board. Employees within these job classifications that have successfully completed probationary requirements may request an annual payment of one (I) percent for one (1) certification that is above those listed in their job description. An employee who qualifies for this payment shall be paid 1 % of the employee;s annual base salary once per year. The employee shall be responsible for providing the City with written documentation that the employee has obtained and is maintaining the qualifying certification on an annual basis. Premiums will not be paid if certification is not maintained. Eligible employees should verify certification will qualify for the premium before attempting certification. The Union and the City will update the job descriptions to reflect newly required certifications with no further adjustments to base salaty. Payments will not exceed a maximum of one percent per year, and will take effect in the pay period following the verification of certification. All costs fbr obtaining certifications above what the job description requires will be the Page250f64 responsibility of the employee and may be paid for by using the City's tuition reimbursement program. . (11) In accordance with Cal-OSHA regulations any employee who operates a forklift must have Forklift Operator Certification. Training to be provided by the City. I Section 5 -Weather Protecti9n. The City will provide rainy weather foot protection and one summer hat for the classification of Parking Enfurcement Officer. I . . ARTICLE X -HOLIDAYS Section I -Fixed Holidays. E:i!:cept as otherwise provided, employees within the representation unit shall have the following f]Xed holidays with pay: January 1 Third Monday in January (Martin Luther King Day) Third Monday in February Last Monday in May July 4 First Monday in September Second Monday in October Vetarans' Day, November 11 Thanksgiving Day Day after Thanksgiving December 25 Either December 24 or December 31 (see below) Employees shall be excused with pay for the full work shift on either December 24 or December 31,provided, however, that City facilities remain open with reduced staffing r levels, that Management retal.os the right to determine work schedules, and that neither day be considered a holiday for purposes of premium pay. If employees are not excused pursuant to this provision, one shift of vacation credit will be added to their vacation accrual. In the event that any of the aforementioned days, except for December 24 or December 31, falls on a Sunday, the following Monday shall be considered a holiday. In· the event that any of the aforementioned days fails on a Saturday, the preceding Friday shall be considered a holiday. If December 24 and 31 falls on Sunday, then the preceding Friday will be designated for purposes of the holiday. Exceptions to this provision are listed in Appendix E. Section 2 -Pay for Fixed Holidays. (a) All employees shall be paid a full day's pay at their regular straight time base hourly rate for all fixed holidays as defined herein. Page 26 of64 (b) An employee must be in a pay status on the workday preceding the holiday to be eligible to be compensated for a holiday. This subsection does not apply to an employee who is on an unpaid medical leave of absence ofless than five (5) days. Section 3 -Work on Fixed Holidays. Any employee required to work on a fixed holiday shall be paid time and one-half for such work in addition to his or her regular holiday pay. Work on a fixed holiday beyond the number of hours in a regular shift shall be compensated at double time and one-half. Employees who work Ii schedule where a regular day off faIls on a holiday will accrue the holiday hours they would have nonna1ly worked on that day. Section 4 -Variations in Work Week. (a) An employee whose work schedule requires that his or her regular days off be other than Saturday andlor Sunday shall have an additional day off scheduled by the r department in the event a fixed holiday falls during his or her regularly scheduled day off. Every attempt will be made to schedule the day on a mutually agreeable basis .. If the day cannot be so scheduled, the employee shall be pald for the day at the stritight time base rate. . (b) Fixed holidays which faIl during a vacation period or when an employee is absent because of illness shall not be charged against the employee's vacation or sick leave balance. Section 5 -Floating Days Off: Floating days offwith pay 'will be scheduled by Management as follows so as to produce three-day weekends: August 2010 Apri12011 June 2011 One floating day off One floating day off One floating day off . The following conditions will hold: (a) Management will desiinate the scheduling of the pald day off under this section at least thirty days in advance. (b) If in conformance with this section, Management is unable to schedule a day off in the month indicated, for reasons of shift operations, work scheduling or any other . reason, the floating holiday will then be added to the employee's vacation accrual on the first pay period of the following month. (c) If an employee fails to take a day off as scheduled by Management under this section, the day off so scheduled will be forfeited. Page 21 ot64 ARTICLE XI -VACATIONS Section 1 -Yacation Accruals. Each employee shall be entitled to an annual paid vacation, accrued as follows: (a) First day of continuous service through the last day of the fourth (4th) year: 80 hours vacation per year. (b) First day of the fifth year of continuous service through the last day of the ninth (9th) year: 120 hours vacation per year. (c) First day of the tenth (lOth) year of continuous service through the last day of the fourteenth (14th) year: 160 hours vacation per year. (d) First day of the fifteenth (15th) year of continuo~ service through the last day of the nineteenth (19th) year: 180 hours vacation leave per year. . (e) Twenty (20) or more years: 200 hours vacation leave per year. Employees may accrue up to three times their annual vacation leave without loss of vacation days. In the event the City is unable to schedule vacation and, as a result thereof;the employee is subject to loss of accrued vacation, the City sball extend the vacation accruai limit up to one year, in which time the excess vacation must be scheduled and taken. As long as there is no interference with departmental operations, there shall be no unreasonable restriction of increments of use. Employees shall complete six (6) months' continuous service before using accrued vacation leave. Section 2 -Holiday Falling During Vacation. In the event a fixed holiday as defined in Article X falls within an employee's vacation period, which would have excused the employee from work (and for which no other compensation is made), an additional workday for such holiday shall be added to the vacation leave. I Secti()n 3 -Illnesspuring Vacation. 'When an employee becomes ill while on vacation and such illness can be supported by a statement from an accredited physician or the employee is hospitalizro for any period, the employee shall have the period of illness chsrged against sick leavll and not against vacation leave. Section 4 -Accrued Vacation Pay for Deceased Employees. An employee who is eligible for vacation leave and who dies while in the municipal service shall have the amount of any accrued vacation paid to his/her estate within thirty days. This proration will be computed at hislher last basic rate of pay .. Section 5 -Effect of Extended Military Leave. An employee who interrupts service because of extended military leave shall be compensated for accrued vacation at the time the leave becomes effective. . Page 280f64 I . I Section 6 -Vacation at Termination. Employees leaving the municipal service with accrued vacation leave shall be paid the amounts of accrued vacation to the date of termination. . I Section 7 -Vacation Cash Out. Ouce each calendar year an employee may cash out eight or more hours of vacation accrual in excess of 80 hours, to a maximum of 120 hours; ·1 provided that the employee has taken 80 hours of vacation in the previous 12 months. ARTICLE XII -LEAVE PROVISIONS Section 1 -Sick Leave. (a) The City shall provide each employee with paid sick leave. earned on a daily basis and computed at the rate of 96 hours per year, with no limits on amounts that may be accumulated, except that fur employees hired after July 1, 1983, sick leave accrual accumulation shall be limited to 1,000 hours and subsections (a)(l) and (a)(2), shall not apply. Payment for accumulated sick leave at termination shall be made only in the following circmnBtances: (1) Eligible employees who leave the municipal service or who die while employed and who have fifteen or more years of continuous service shall receive compensation for illlUsed sick leave hours in a sum equal to two and one~half percent of their unused sick leave hours multiplied by their years of continuous service and thcir base hourly rate of pay at termination. (2) Full sick leave accrual will be paid in the event of termination due to disability. (b) Use o/Sick Leave. Sick leave shall be allowed and used in cases of actual personal sickness or disability, medical or dental treatment, or asiluthorized for personal business. Up to nine days sick leave per year may be used for illness in the immediate family, including registered domestic partner. A new employee may, if necessruy, use up to forty-eight (48) hours of sick leave at any time during the first six months of el)lployment. Any negative balances generated by such utilization will be charged against future accrual or deducted from fmal paycheck in the event of termination. (c) An employee who has been disabled fer 60 consecutive days and who is otherwise eligible both for payment under the long-term disability group insurance coverage and accrued sick leave benefits may, at hislher option, choose either to receive the long term disability benefits or to utilize the remainder of hislher accrued sick leave prior to _applying for long-term disability benefits. (d) Sick leave will not be granted for illness occurring during any leave of absence uniess the employee can demonstrate that it was.necessruy to come under the care of a doctor while on such other leave of absence. Page290f64 , ---' (e) Return to Work With Limited j)yty. Upon approval of department management and the City Risk Manager, an employee may return to work for doctor-approved limited duty. Approval for return to work s.ball be based upon department ability to provide work consistent with medical limitations, the location of the work assignment, and the length of time of the limitations. The City doctor may be consulted in detennining work limitations. Section 2 -Bereavement Leave. Leave of absence with pay of three days shall be granted an employee by the head of his or her department in the event of death in the employee's immediate fumily, which is defined for the pUIposes of this section as wife, husband, son, step-son, son-in-law, daughter, step-daughter, daughter-in-law, mother, step-mother, mother-in-law, father, step-father, father-in-law, brother, brother-in-law, step-brother, sister, step-sister, sister in-law, grandmother, grandmother-in-Iaw, grandfather, grandfather-in-law, grandchildren, aunt, uncle, niece, nephew, registered domestie partner, or a close relative residing in the household of the employee. Such leave shall be at full pay and shall not be charged against the employee's accrued vacation or sick leave. Request for leave with pay in excess of three (3) days shall be subject to the written approval of the City Manager. Approval of additional leave will be based on the circurnstances of each request with consideration given to the employee's need for additional time. Section 3 -Mili~ Leave. The provisions of the Military and Veterans' Code of fue State of California shall govern the granting of military leaves of absence and fue rights of employees returning from such leaves. Consistent with the Military and Veterans Code, the City of Palo Alto sbal1 pay employees in SEIU bargaining unit their regular salary, salary differential, and all available benefits for fue first thirty days. (a) Disability. Leaves of absence without pay may be granted in cases of disability not covered by sick leave. Pregnancy will be considered as any other disability. Leaves of absence for disability are subject to physicians' verification including diagnosis and medical work restriction. (b) Family Leave. Family leave will be granted in accordance with applicable state and federal law. . . (c) Other.,Leaves. Leaves Qf absence without pay may be granted in cases of personal emergency, Union bnsiness or when such absences would not be contrary to the best interest of the City .. Non-disability prenatal leave is available under this provision, but such leave shall not begin more than six months prenatal nor extend more than six months postpartum. During·unpaid leaves of absence for disability or other reasons, fue employee may elect to use accrued vacation credits .. Requests for leaves without pay s.ball not be Page 30 of 64 unreasonably denied. In order to avoid misunderstandings, all leaves without pay must be in writing to be effective. Section 5 -Jury Duty and Subpoenas. Employees required to report for jury duty. or to answer subpoenas as a witness in behalf of the State of California or any of its agencies shall be granted a leave of absence with pay from their assigned duties until released by the court, provided the employee remits to the City all fees received from such duties other than mileage or subsistence allowances within thirty (30) days from the termination of jury service. When an employee returns to complete a regular shift following time served on jury duty or as a witness, such time fulling within the work shift shall be considered as time worked for purposes of shift completion and overtime computation. In determining whether or not an employee shall return to his or her regular shift following performance of the duties, reasonable consideration shall be given to such factors as travel time and a period of rest. When a combination of City work time and jury duty equals 14 or more hours in the 24-hour period immediately before the employee's shift starting time, the employee will be allowed a rest period of nine hours. Any portion of the rest period falling within the employee's work shift will be considered as hours worked and compensated at the straight time rate. This provision does not apply to conditions of bona fide emergency. Bona fide emergency conditions are conditions involving real or potential loss of service or property or personal danger. Section 6 -Time Off to Vote. Time off with pay to vote in any general or direct primary election shall be granted as provided in the State of California Elections Code, and notice that an employee desires such time off shall be given in accordance with the provisions of said Code. Section 7 -Disapproval of Leave of Absence. In case of disapproval of extension, revocation or cancellation of an existing leave of absence, notice shall be sent by certified mail, return receipt requested, to the employee stating the date of such action, the reason and a specific date to return to work, which is not less than five working days from date indicated on return receipt. Section 8 -Personal Business Leave Chargeable to Sick Leave. All employees shall be granted up to twenty (20) hours personal business leave per calendar year, chargeable to sick leave. The employee need not disclose the reason for the personal business. The scheduling of such leave is subject to the approval of the appropriate level of Management, and such approval shall not unreasonably be denied. Section 9 -Return to Assignment. The department shall make every effort to ensure that employees resuming work following a leave pursuant to Sections 1-8 shall be returned to the assignment, shift, andlor work location held immediately prior to the leave. If the employee cannot be so assigned, he or she shall, upon request, be granted a meeting with department management to discuss the reasons for the change. Upon request, the employee shall be afforded Union representation at such a meeting. Page 31 of64 I ARTICLE xm· WORKERS' COMPENSATION INSURANCE Section 1 -Industrial Temporary Disability. (a) While temporarily disabled, employees shall be entitled to use accrued sick leave for the first three (3) days following the date of injury and thereafter shall he paid full base salary for a period of not to exceed fifty-seven (57) calendar days, unless . hospitalized, in which case employees shall be paid full base salary for a period not to exceed sixty (60) days from date of injury. (b) For any temporary disability continuing beyond the time limits set forth in (a) above, employee~ shall be paid two-thirds (66 2/3%) of their full base salary at the time of injury for the duration of such temporary disability in conformance with the State law. (e) During the period of temporary disability, an employee's eligibility for health, dental, life, LTD, or other insured program will continue with City contributions at the same rate as for active employees. In case of Subsection (a) above, the employee will continue to accrue vacation and sick leave benefits. In the case of Subsection (b), sick leave and vacation benefits shall not be accrued. Section 2 -Vocational Rehabilitation Benefits for Permanently Disabled Employees. Vocational Rehabilitation will be made available to employees who have suffered permanent disability as a result of an injury or illness sustained in the course and scope of employment before 111/04. For injuries on or after 111/04 qualified employees are entitled to supplemental job displacement vouchers in accordance with the California Labor Code, Division 1, Department of Industrial Relations and Division 4, Workers' Compensation and Insurance, the Americans with Disabilities Act (ADA), and the City of Palo Alto's Workers' Compensation Program. . ARTICLE XIV -BENEFIT PROGRAMS Section 1 • Health Plan (a) Active Employees 1. The City will pay up to the monthly medical premium for the 2nd most expensive plan among the existing array of plans, except that fur increases that go into effect after January 31, 2010 the City and participating employees will share equally the first ten percent (10%) of each premium increase that occurs for the plan in which the employee is enrolled at their respective level of enrollment (i.e. one party, two party, family). If a given increase exceeds ten percent (10%), the balance of that increase will be paid by the City. If sufficient increases occur that the employee portion of the premiUm for the plan in which he or she is enrolled equals ten percent (10%) of the total premium at the employee's level of enrollment, the employee's share of further premium increases shall be ten percent (10"10) and the Page 32 of64 i " .j City's share shall be ninety percent (90%). City medical premium contributions will be prorated for part-time employees hired or newly assigned to a part-time work schedule on or after January 1,2010 based on the number of hours per week the part-time employee is assigned to work. lfPERS changes the plans it offers, the City and the Union will meet and confer over the City continuing to provide an equivalent benefit at an equivalent cost. Effective February J, 2010, with premium increases that go into effect after January 31, 2010 the City shall contribute to its retiree insurance trust (the PERS retiree medical trust or its successor) an amount not less than the amount of premiums paid by active employees in the bargaining unit in the respective calehdar year as a result of the sharing of the first 10% of eacli premium increase, as provided above in this pamgraph 1. The City shall make one contribution in the fiscal year to cover the entire amount payable to the trust under this pamgraph as of the preceding December 31. 2. Through December 31,2009, the City will reimburse employees on PERS Cam, who switch to PERS Choice during the 2006 open enrollment period and remain in PERS Choice for maximum calendar year co-payments for unreimbursed costs incurred due to the difference between the PERS Care maximum calendar year copayment responsibility and the PERS Choice maximum calendar year copayment responsibility. The total payments per employee will not exceed $1000.00 annually unless employee has a one dependentlfumily coverage in which case annual payment will not ,exceed $2000.00. The City has agreed to provide an annual amount of$SO,OOO.OO to address these costs. lftotal claims for reimbursement exceed available funds, the City will use any unused tuition reimbursement funds budgeted for SEIU for these purposes. Any money left from each year will carry over to subsequent years of this contract. 3. The City agrees to offer a program to active SEIU employees enrolled in PERSCare as of911106 who elect the PERS Choice health plan in which the City will reimburse the employee and/or dependents for any covered medical expense which exceeds the $2 million Lifetime Maximum Benefit (b) Health Plan Coverage for Future Retirees Hired Before JilIIuary 1,2005. 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. Effective 111107 the City's monthly employer contribution for each retiree sha11 be the amount necessary to pay for the . cost of his or her enroilment, in a health benefits plan up to the monthly premium for the 2nd most eXpensive plan offered to the SElli employee (among the existing array of plans). However, the City contribution for an employee hired before January 1, 2005 who retires on or after January 1,2010 shall be the same contribution amount it makes from time to time for active City employees, except that employees retiring after January 31, 2010 but on or before December 31Jall6 30, 2010 shall not be required to pay any premium increase that fust takes effect after January 31, 2010." Page 33 of64 . i , . For 20061Q, the contribution for dependents is 80~% (8a~O% in 20Wl) of difference between the applicable "Employee and One Dependent" or "Family" maximum employer contribution for Active SEIU employees and the maximum monthly employer contribution for "Employee Only" coverage. 1bis contribution for dependants will increase annually by 5% of the difference between the single party premium and the two or family member premium, until such time as the amounts are equal . (e) PERS -Health Benefit Vesting For Future Retirees Effective January 1,2005. The CalPERS vesting Schedule set forth in Government Code section 22893 will apply to all SEIU employees hired on or after January 1,2005. 'Under this law, an employee is eligible for 50% of the specified employer health premium contribution after ten years of service credit, provided at least five of those years were performed at the City of Palo Alto. After ten years of service credit, each additioual year of service credit will increase the employer contribution percentage by 5% until, at 20 years' service credit, the employee will be eligible upon retirement for 100% of the specified employer contribution. However, the maximum contribution for family members will be 90% of the specified employer contribution. The City of Palo Alto's health premitmi contribution will be the minimum contribution set by CalPERS under section 22893 based on a weighted average of available health plan premiums. (d) Coverage for Domestic Partners. Domestic Partnership Registered with the California Secretary of State. -Employees may add their domestic partner as a dependent to their elected health plan coverage if the domestic partnership is registered with the Secretary of State. Domestic Partnership Not Registered with the California Secretary o/State. Domestic partners who meet the requirements of the City of Palo Alto Declaration of Domestic Partnership, and are registered with the Human Resources Department, will be eligible for reimbursement of the actual monthly premium cost of an individual health plan, not to exceed the maximum monthly City employer_contribution for one-. party coverage under the CalPERS Health Benefits Program for SEIU members. Evidence of premium payment will be required with request for reimbursement. (c) At City option during the life of this agreement and if otherwise available, the City may offer an incentive payment in lieu of City-paid dependent or family medical coverage for those employees who volunterily decline dependent coverage . . 1 (1) Alternative Medical Benefit Program. If a regular employee and/or the employee's dependent(s) are eligible for medical insurance through any other employer-sponsored or association-sponsored group medical plan, the employee may elect that alternative medical insurance coverage through the other employer-sponsored or association plan and waives wsther right to the City of Palo Alto's medical plan insurance coverage for same individuals. Page 34 of64 Employees electing alternative coverage and waiving City coverage will receive cash payments equal to approximately half of the "average monthly premh:uns" for their medical insurance coverage. "Averaged monthly premiums" are the average of the Kaiser HMO, Blue Shield HMO and PERS Choice PPO premiums of the employee's City medical coverage available through the CalPERS Health Benefits Program. The rates for 200911 are as follows: One Party: $26QJ)1} $301 Two Party: $.§21}.OO $603 Family: $675.Q9 $""7"'83"--___ _ (g) If the State of California or federal government requires the City to participate and contribute toward coverage under any medical plan outside ofPEMHCA, the City's total liability for enrolled employees and retirees and their eligible family members shall not exceed what the City would have paid toward PEMHCA coverage in the . absence of such state or federal plan. The City will meet and confer with the Union over the impact of such change on matters within the scope of representation before implementing any change. (Il) :p.lotwithstallsiIl:g atty Sjleeifiea effeeth,.; elate sst forti! ill fllis SOOHOO 1, the City will !let ii'llJ:'lleme.at reooeli:eas in its health ill.SUfa!leS eeat5ll\tiells feI aetive empl(l'j'lles er fattlftll'emees ,vitliot!t issu-iag a gefleFal .aetiee ants illteat te de se at least thirty (:lg) aays !;efere tae aetual &feelise date anile efiaage (whether the same Sf Elifferea.ttha:a the speeifuld dats(s) abave.). This j9Gmgfaph shall be deeunsEi null MEl 'loid as sf fua.e aI}, 21}\g. Section 2-Dental Plan. (a) The City shall continue to provide a self-funded dental program for th.e benefit o(City employees and their eligible dependents. The City shall pay 100% of the required premiums for the program, except that benefits for regular part-time employees will be prorated as follows:_Employees hired after January 1,2005, who will work less than full time, wiltreceive prorated premium costs for dental benefits in accordance with hislher percentage of a full-time work schedule. Part-time employees =t1y receiving full benefits will not be impacted. (b) The City's Dental Plan provides the following; • Maximum Benefits per Calendar Year $2,000 per person. (c) Effective July 1,2001, dental implants in conjunction with one or more missing natural teeth, and removal of implants will be covered as a Major Dental Service at 50% usual, customary and reasonable (UCR). ./ (d) Effective 1/1/07 the City will add composite (tooth colored) fillings in dental plan . I Page 35 of64 j I ... , • ; posterior teeth. (e) Effective 111/07 the City will pay up to $2000.00 for Orthodontia coverage. Section;lc Vision Care. The City shall continue to provide a self-funded vision care program for the benefit of City employees and their dependents. The City shall pay 100% of the required premiums for the program. The benefits of the vision care program shall continue to be equivalent to $20 Deductible Plan A under the Vision Service Plan .. ' Section 4 -Life Insurance. The City agrees to continue the Basic and Supplementallifu insurance plan as currently in effect for the term of this Memorandum of Agreement. I Sec~ion 5-Long Term Disability Insurance. The City shall co:runue the long term disability insurance plan currently in effect for the term of this Memorandum of Agreement. For Plan A, the benefit is 66 and 213% of pre-disability earnings to the maximum benefit level of $4000.00 per month. Employee coverage is subject to a voluntary payroll deduction of the insurance premium applicable to the first $6,000 of monthly salary, less a credit of$II.17 per month to be pald by the City. For Plan B, the benefit is 60% of pre-disability earnings up to the maximum benefit level of $1800 per month. Employee coverage is subject to a voluntary payroll deduction of the insurance premium applicable to the fust $2000 of monthly salary for Plan B. The City will pay premiums in excess thereof. The City will pay up to $17.50 per month toward long term . disability insurance premiums for those employees without eligible dependents covered under the health insurance provisions. Section 6 -Effective Date of Coverage for New Employees. For newly-hired regular employees, elected coverage will begin on the first day of the month following date of hire, Section 7 -Dual Coverage. When a City employee is married to another City employee each shall be considered as an employee for purposes of health and dental coverage, provided however that neither sha1l be covered as a dependent of the other, and dependent children, if any, shall be covered by only one spouse. Section 8 -Deferred Compensation, The City sha1I continue to make available a Section 457 Deferred Compensation Plan to SEIU employees and will insure reasonable access to Deferred Compensation representatives for all interested employees. Section 9-Dependent Care Assistance Program. The City shall continue to provide a Dependent Care Assistance Program (DCAP) for_employees that complies with Section . 125 and 129 of the Internal Revenue Code. Section 10 -Training Programs. (a) Employees assigned by the City to attend meetings, workshops, or conventions of their professional or technical associations sha1l have their dues and reasonable Page 36 of 64 < i -: I I expenses paid by departmental funds and shall be allowed to attend such.workshops, meetings, and conventions on paid City time. (b) Health club/gym membership reimbursement of these expenses is taxable to the employee. (c) City will reimburse for travel, meals. and lodging while away from home attending an educational conference that the supervisor authorizes as being job related or which will improve an employee's skills. Per City Policy and Procedure 1-02, the Pre­ Travel Authorization Form should indicate expenses that will be paid. ARTICLE XV -RETIREMENT Section 1 -PERS ContinuatiQ,!'h The City will continue the present benefits under the Public Employees' Retirement System 2.7% at 55 Jor employees hired before January I, 2010 or the later effective date of the 2%@60 formula for new hires as described herein. The City shall amend its contract with CaiPERS to provide such employees hired on or after the effective date of the CaIPERS amendment with the CalPERS retirement formula two percent (2.0%) offinal salary at age sixty (60). The City will implement this change . on July 17,2010. IlH'ltlal)' 1,2910 SF as SeElR !l!:e!'ee'!ler as pessHlls. section 2 -Employee Share. Employees currently pay two percent (2%) and the City pays six percent (6%) of the eight percent (8%) employee contribution toward the 2.7 @ 55 pension formula Effective with the pay period including December I, 2009, employees under the 2.7 at 55 formula will pay an additional six (6%) percent toward 2.7% @ 55 for a total of eight percent (8%) of the PERS employee-share contribution. I The City contribution of the PERS employee share will simultaneously change to zero percent (0%). Effective June 30, 2010, the PERS employee share contribution rate of employees under the 2.7 @ 55 pension furmula shall change to five and three quarters percent (5.75%) and. the City's contribution shall simultaneously change to two and one . quarter percent (2.25%) of pay. . For employees. hired on or after January 1, 20 I 0 or such later date as the 2.0% @ 60 formula is implemented by the City, as provided in section I above, employees covered by that formula shall pay five percent (5%) of pay toward the seven percent (7%) employee contribution and the City shall pay two percent (2%). However, ifPERS laws or rules require that the contribution rate of employees toward the respective employee contributions under the 2.0 @ 60 and 2.7 at 55 formulas must be the same, the uniform employee contribution rate shall be six percent (6%) with the City paying the remaining percentage for the applicable formula. Section 3· Conversion for Final Twelve MonthsPrior to Retirement. Notwithstanding Section 2 above and pursuant to Govermnent Code Section 206lS.5, upon filing a notice I of retirement, the amount of the City-paid PERS employee contribution will be converted to a salary adjustment of equal !!mount on a one-time irrevocable basis" for the final. twelve months immediately prior to retirement. For this final twelve-month period the Page 37 of 64 """J ! employee shall pay PERS employee contributions. Upon receiving an employee's notice of retirement the City-paid PERS employee contribution that will be converted to a salary adjustment of equal amount on a one-time irrevocable basis for the fmal twelve months immediately before retirement will be the amount of the applicable employee-paid contribution set forth in section 2 of this Article. For this final twelve-month period the retiring employee on the 2.7 at 55 formula_shall pay the full percentage of the applicable PERS employee contributions. (8% for employees on the 2.7 @ 55 formula and 7% for employees on the 2.0% at 60 formula) .• Section 4 -Utility Rates Discount. Employees who retire and were employed by the City on or before April 1, 1977, and spouses of deceased employees who were employed by , the City on or before April 1, 1977, shall continue reductions in utility rates. All retired employees and spouses of deceased employees shall also have residential privileges at City libraries, refuse disposal area, golf course and swimming pools. ARTICLE XVI -COMMUTE INCENTIVES AND PARKING Section 1 -Commute Incentive. Eligible employees may voluntarily elect one of the following commute incentives: Civic Center Parking. Employees assigned to Civic Center and adjacent work locations. The City will provide a Civic Center Garage parking permit.. New employees hired after April 30, 1994 may initially receive a parking permit for another downtown lot, subject to_the availability of space at the Civic Center Garage. Public Transit. The City will provide monthly Commuter Checks worth the value of: $40 for employees traveling two or more zones on Caltrain; $40 for employees using the Dumbarton Express, BART, the ACE train, or a commuter highway vehicle; $35 for employees traveling within one zone on Caltrain; $35 for employees using VTA, and other buses, These checks are pretaxed and may be used toward the purchase of transit pass. Carpool. The City will provide $30 per month (taxable income) to each eligible employee_in a carpool with two or more people. Vanpool Program. The City will provide Commuter Checks worth the value up to $60 to each employee voluntarily participating in the Vanpool Program. These checks are pre-taxed and may be used toward payment of the monthly cost of Vanpool Program participation. Employees must fulfill the basic requirements of the Employee Commute Alternatives Program to qualify. Bicycle. The City will provide $20 per month (taxable income) to eligible employees who ride a bicycle to work. Walk. The City will provide $20 per month (taxable income) to eligible employees who walk to work. Page 38 of64 Section 2 -Parking Lot Security -Mun,iyipal Service Cj3nter. The City will provide fenced and locked parking facilities for Municipal Service Center employees. Procedures will be established for entering and leaving the parking facilities. I Section 3 -Bicycle Lockers and Motorcycle ParkillB. The City will provide bicycle lockers and motorcycle parking areas for City employees at mutually agreeable work locations. ARTICLE XVII-PHYSICAL EXAMINATIONS If any non-probationary employee who is required to !:lave a City-provided physical examination not related to workers' compensation programs disagrees with the fmdings of the City-sponsored physician, he/she may consult with hislher own physiciail and, if hislher private physician's report conflicts with that of the City physician in terms of ability to work at hislher regular job, then he/she may request an evaluation of hislher problem through a third physician mutually agreed upon by the employee and the City. Cost for such examination will be equally shared and the decision of this physician conceming the continuing ability of the employee to perform hisIher work in hislher regular job without exposing himselflherself to further injury as a result of hislher condition shall be the basis for returning the employee to hislher regular work. ARTICLE XVIII -SAFETY Section I -Health and Safety Provisions. The City shall furnish and use safety devices and safeguards and shal! adopt use practices, means, methods, operations and processes which are reasonably adequate to render such employment and place of employment safe,· in conformance with applicable safety regulations under the State Labor and Administrative Code sections. The City shall not require or permit any employee to go to or be in any employment or place of employment which is not safe. Section 2 -Union Cooperation. Union will cooperate with the City by encouraging all . employees to perform their work in a safe manner. Section 3 -Safety Committees and Disputes. Safety committees composed of Management and Union stewards in the below Iiated organizations will meet no less than six (6) times annually to discuss safety practices, methods of reducing hazards, and to conduct safety training. _This shall in no way remove the basic responsibility of safety from Management nor shall it in any way alter the responsibility of the employee to report unsafe conditions directly and immediately to his or her supervisor. Community Services PUblic Works Water-Gas-Wastewater Field Operations Page 39 of 64 Electric Field Operations Water Quality Control (a) A committee composed of one facilities Management representative. one building inspection representative. two Union representatives, and the City Risk Manager will meet as needed concerning safety matters of the Civic Center. (b) A ten-member Citywide Union/Management safety committee with equal Union and Management membership will meet upon call to review safety and occupational health standards and practices, discuss overall City sa.futy and health problems, andJo act as an advisory group to the departmental safety committees .. The C01)lmittee shall . review all departmental safuty programs and retommendchange where necessary. (c) In cases of dispute over safe working conditions the employee will fIrSt report such unsafu conditions to his or her supervisor and every attempt will be made to rectifY the problem at this level. The employee may contact' his or her steward to assist in the resolution of the dispute. If the problem carmot be resolved the Risk Manager will be contacted and the problem will be addressed through the interpretation of the basic safety rules and regulations. Should the problem not.be resolved at this step, the grievance procedure will be utilized. Safety grievances shall be submitted at Step III. (d) In response to recommendations from the Ergonomics Safety Committee, management will develop training workshops which include infonnation on safe . ergonomic work practices. Such workshops will be given at least two times per year. Upon release ofeal/OSHA regulations covering safe workplace ergonomic standards, management will immediately adopt such standards as party of its Injury Prevention Program. ARTICLE XIX -GRIEVANCE and APPEAL PROCEDURE Section 1-General Provisions. The City and the Union recognize that early settlement of grievance or appeal of disciplinary actions is essential to sound employee-employer relations. The parties seek to establish a mutually setisfilctory method for the settlement of employee grievances, or appeal of disciplinary action, or Union grievances as provided for below. In presenting a grievance or appeal of disciplinary action, the aggrieved andlor his or her representative is assured freedom from restraint, interference, coercion, discrimination or reprisal. Release time for investigation and processing a grievance .or appeal of disciplinary action is designated in Article IV of this Memorandum of Agreement (MOA). Section 2 -Definitions (a) Grievance means an unresolved complaint or dispute regarding the application or interpretation of rules, regulations, policies, procedures, Memorandum of Agreement or City ordinances of resolution, relating to tenns or conditions of employment, Page 40 ofM wages or fringe benefits, excluding however those provisions of this MOA which specifically provide that the decision of any City official shall be final, the interpretation or application of those provisions not being subject to the grievance or appeal of disciplinary action procedure. (b) Appeal of a disciplinary action means an appeal of any kind of disciplinary action against an employee covered by 1his Memorandum of Agreement. Discipline is defined as suspensions without pay, reductions in pay, demotion or discharge. Reprimands, transfers, reassigmnents, layoffs, and nega:t.ive comments in performance evaluations ere not considered discipline. " Section 3-Conduct of Grievance Procedure or Appeal of Disciplinary Action Procedure (a) An aggrieved employee may be represented by the Union or may represent himselflherself in preparing and presenting a grievance or appeal of disciplinary action at any level of review. Grievances or appeal of disciplinary action may also be.:presented by a group of employees. No grievance or appeal of discipIinary action settlement may be made in violation of an existing merit rule or memorandum of agreement. The Union will be notified prior to the implementation of any settlement made which affects the rights or conditions of other employees represented by 1he Union. The Union and the Steward will be copied on all written representation unit I (b) grievance or appeal of disciplinary action decisions. An employee and the representative steward, if any, may use a reasonable amount of work time so long as there is no disruption of work, in conferring about and presenting a grievance or appeal of disciplinary action. Requests for release time to ' prepare grievance or appeal of disciplinary action shall be made in accordance with ,1he provisions of Article N, Section 3. Beginning with the third step of the grievance or appeal of disciplinary action procedure, 1he Chief Steward or Alternate Chief Steward may assist in presenting a grievance or appeal of disciplinary action and may be present at all Step III, and N ' grievance or appeal of disciplinary acnon hearings. (eg) The time limits specified in this Article may be extended by mutual agreement in writing of the aggrieved employee or the Union and 1he reviewer concerned. (e~) Should a decision not be rendered within a stipulated time limit, the grievant may immediately appeal to 1he next step. (f) The grievance or appeal of disciplinary action may be considered settled if the decision of any step is not appealed within the specified time limit. I (g) If appropriate, 1he aggrieved employee(s) or the Union and 1he department head may mutually agree, in writing, to waive Step I and/or Step II of the grievance or appeal of disciplinary action procedure. Page 41 of 64 I (h) GrievarKles or appeal of disciplinary action shall be made in writing and. submitted on forms provided by the City or on forms which are mutually agreeable tu the City and the Union. The written grievance or appeal of disciplinary action shall contain clear, factual and concise language, including; (I) the name of the grievant; (2) a statement of the facts upon which the grievance or appeal of disciplinary action is based, including relevant dates, times and places; (3) specific provisions of this Agreement or specific'City rules, policies, or procedures which the grievance or appeal of disciplinary action alleges has been violated; (4) a summary of any steps taken toward resolution; and (5) the action the grievant believes will resolve the grievance or appeal of disciplinary action, Any retroactivity on monetary grievances or appeal of disciplinary action shall be limited to the date of occurrence, except in no case will retroactivity be granted prior to three months before the grievance or appeal of disciplinary action was filed in writing. (j) If the grievarKle is filed by more than one employee in the bargaining unit, the Union may, at its option, convert it to a Union grievance after Step II of the grievance procedure. The Union may also file a grieVarKle in those instances when, under this Memorandum of Agreement, a Union right not directly related to an individual employee becomes the subject of dispute, Union grievances shall comply with all of the foregoing provisions and procedures. (k) For purposes of time limits, "working days" are considered tu be Monday through Friday, exclusive of City holidays. (l) If a mutually agreed solution is reached during any step of this grievance or appeal of disciplinary action procedure, the agreement shall be placed in writing and signed by the City and the grievant or union. (m) Upon request of either perty, meetings to discuss the grievance or appeal of disciplinary action shall be held at any step in the grievance or appeal of disciplinary action procedure. Section 4-Grievance and Appeal Procedure. Step llnformal Discussion. Within fifteen (15) working days after the incident or discovery of the incident on which the grievance or appeal of disciplinery action is based the aggrieved employee shall present the grievance action to his or her irurnediate supervisor and attempt to resolve the grievance through informal discussions. Every attempt will be made to settle the issue at this level. Step II: If the grievance is not resolved through the informal discussion in Step 1 or the employee wishes to appeal disciplinary action taken against himlher in the case of a grievance, the employee will reduce the grievance or appeal of disciplinary action to Page 42 of 64 '''1 writing and submit copies to the Department head or bis or her designee within fifteen (15) working days of the discussion with the immediate supervisor or within fifteen (15) working days from the receipt of a final disciplinary action. The Department Head or designee shall have fifteen (15) working days from the receipt of a written grievance or appeal of disciplinary action to review the matter and prepare a written statement. Step m. If the grievance or appeal of disciplinary action is not resolved and/or the . aggrieved employee is not satisfied \V1th the Step II decision, the grievant or disciplined employee may appeal to the Human Resource Director or his or her designee in writing within fifteen (15) working days of the receipt of the Department Head's response. The written appeal to the Human Resources level shall include a copy of the original grievance or appeal of disciplinary action,me Department Head's deciSion at Step II, and a clear statement of the reasons for appeal. Within fifteen (15) working days, after receiving the written appeal, the Human Resource Director shall review the matter and prepare a written statement If a mutually agreed solution is reached during this process the agreement shall be placed in writing and signed. Step IV. Ifthe grievance or appeal of disciplinary action is not resolved at Step III, the aggrieved employee may choose between final and binding resolution of the grievance or appeal of disciplinary action t:hrough appeal to the City Manager or through appeal to . final and binding arbitration. For the terni oftbis Memorandum of Agreement, appeals to final and binding arbitration may be processed only with Union approval. All Step IV appeals must be filed in writing at the Human Resources Department Office within fifteen (15) working days of receipt of the Human Resource Director's decision at Step 3. lfthe grievant or appellant elects final and binding resolution by the City Manager, the City Manager will choose the methods he or she considers appropriate to review and settle the grievance or appeal of disciplinary action. The City Manager shall render a written decision to all parties directly involved within fIfteen (15) working days after receiving the grievaniJappellant's appeal. If the grievant/appellant elects fInal and binding arbitration in aceordance with this provision, the parties shall mutually select an arbitrator within 90 days from the date of receipt of the written request for appeal. In the event the parties cannot agree on an arbitrator, they shall mutually request a panel of fIve arbitrators from the California State Conciliation Service or from the American Arbitration Association if either party objects to the State Conciliation Service, and select an arbitrator by the alternate strike method. The arbitrator shall have jurisdiction and authority only to interpret, apply, or determine compliance with the provisions of this Memorandum of Agreement and such Merit System Rules, regulations, policies, procedures, City ordinances, resolutions relating to terms or conditions of employment, wages or fringe benefits, as may hereafter be in effect in the City insofar as may be necessary to the determination of grievances or appeal of disciplinary action appealed to . the arbitrator. The arbitrator shall be without power to make any decision contrary to, or inconsistent with or modifYing in any way, the terms of this Memorandum Of Agreement. The arbitrator shall be without authority to require the City to delegate or relinquish any powers which by State law or City Charter the City cannot delegate or relinquish. Where either party seeks arbitration and the other party claims the matter is not subject to the arbitration provisions of this Memorandum of Agreement, the issue of Page 43 of 04 I , ... ] I arbitrability shall first be decided by the arbitrator using the standards and criteria set forth in Article:XX and without regard to the merits of the grievance or appeal of disciplinary action. If the issue is held to be arbitrable, the arbitration proceedings will be recessed for up to five working days during which the parties shall attempt to resolve the grievance. If no resolution is reached, the arbitrator will resume the hearing and hear and resolve the issue on the merits. Copies of the arbitratOl;'s decision shall be submitted to the City, the aggrieved employee and the Union. All direct costs emanating from the arbitration procedure shall be shared equally by the City and the aggrieved employee or the Union. . ARTICLE XX· UNSATISFACTORY WORK OR COl'!l>UCT AND DISCIPLINARY ACTION The City has the right to discipline, demote, or discharge employees for cause •. Non­ probationary employees whose work or conduct is illlsatisfactcry but not sufficiently deficient to warrant discipline, demotion, or discharge will be given a written notification ofunsatisfactcry work or conduct and an opportunity to improve. Failure to correct deficiencies and improve to meet standards may result in discipline, demotion, or discharge. Discipline is defined as suspensions without pay, reduction in pay, demotion, or discharge, Reprimands, transfers, reassignments, layoffs, and negative comments in performance evaluations are not discipline and shall not be subject to the requirements of this Article, Section I . PreliminarY Notice of Discipline, Prior to imposing disciplinary action, a supervisor shall provide an employee with preliminary written notice of the proposed disciplinary action, The notice of proposed disciplinary action must be in writing and served on the employee in person or by registered mail or Fed-Ex. The notice of disciplinary action shall include: (a) Statement of the violations upon which the disciplinary action is based; (b) Intended effective date of the action; (c) Statement of the cause thereof; (d) Statement in ordinary and concise language of the act or the omissions upon which the causes are based; (e) Copies of any documents or other written materials upon which the disciplinary action was fully or in part based, (f) Statement advising the employee ofhislherright to appeal from!rnCh action, and the right to Union representation. (g) The date and location of the Skelly meeting and the name of the Skelly Officer Page 44 of 64. I Section 2 -Skelly Meeting. The employee shall have the right to respond informally to the charges either verbally m in writing before the discipline is imposed. The employee shall have fifteen (15) working days from receipt of the notice to request this pre­ disciplinary administrative review. The employee may request a reasonable extension of the time to respond for justifiable reasons. The Skelly meeting to listen to the verbal I responses shall be scheduled ,,1th a_City representative who is not the manager recommending the discipline (the "Skelly Officer"). The Skelly Officer shall render a final written decision (the "post-Skelly decision") within fifteen (15) working days of receiving the employee's response, if any, and shall deliver the post-Skelly decision to the employee by personal delivery or registered mail. The Skelly Officer may sustain, modifY, or overturn the recommende<}>disciplinary action. lfthe Skelly Officer sustains or modifies the disciplinary action, the action may be imposed after the post-Skelly decision is delivered to the employee. Sec~on 3 -Appeals. Appeals of disciplinary action should be processed through the procedures outlined in Steps 2-4 of the grievance appeal of disciplinary action procedure (Article XIX, Section 4.) ARTICLE XXI -NO ABROGATION OF RIGHTS The parties acknowledge that Management rights as indicated in Section 1207D of the Merit System Rules and Regulations and all applicable State laws are neither abrogated nor made subject to negotiation by adoption of this MOA. ARTICLE XXII -OUTSIDE EMPWYMENT The provisions of Article 4.7 of the Government Code of the State of Califomia will govern the detennination of incompatible outside employment. ARTICLE XXIII -WORK STOPPAGE AND LOCKOUTS The City agrees that it will not lock out employees, and the Union agrees that it will not engage in any concerted work stoppage or slowdown during the term ofthis_MOA. An employee shall not have the right to recognize the"picket line of a labor organization when peiforming duties of an emergency nature. ARTICLE XXIV PROVISIONS OF THE LAW Section 1. Conformity and Separability of Proyisions. This Memorandum of Agreement is subject to all current and future applicable Federal and State laws and Federal and State regulations and the Charter of the City of Palo Alto_and the Constitution of the State of . California. Should any of the provisions herein contained be rendered or declared invalid by reason of any eJdsting State or Fedcrallegislation, such invalidation of such part or Page 45 of64 portion of this Memorandum of Agreement shaU not invalidate the remaining portions hereof, and they shall remain in full force and effect, insofar as such remaining portions are severable. I Section 2. Merit Rules and RegulationJ!. This Memorandum of Agreement shall become a part of the City of Palo Alto Merit Rules and Regulations applying to employees assigned to classifications in the SETIJ unit. As applied to employees assigned to the SETIJ mrit, this Memorandum of Agreement shall prevail over any conflicting Merit Rules and Regulations. . Section 3 -Resolution. The City and the Union agree by signing this Memorandum of Agreement that the wages, hours, rights and working conditions contained herein shall be continued in ful! force during the term of this Memorandum of Agreement except as otherwise provided for in . the Memorandum of Agreement and shall be binding on both the City and the Union upon ratification by the Council of the City of Palo Alto and upon ratification by Union membership. ARTICLE XXV -COST REDUCTION PROGRAMS During the term of this agreement, the Union will aggressively assist Management in developing cost reduction programs. Such programs may include voluntary reduced hours/pay after this concept is studied by Management, and with such application as may be approved by Management. ARTICLE XXVI -TERM The Term of this Memorandum of Agreement shall commence on July 1,2010, and shall expire on June 30, 20g;;l11. _Either party may serve Written notice upon the other party during the period between ninety (90) and sixty (60) days prior to June 30, 200911, of its desire to amend this Memorandum of Agreement. If, at the time this Memorandum of Agreement would otherwise terminate, the parties are negotiating a new Memorandum of Agreement, upon mutual agreement the terms and conditions ofthis Memorandum shal1 continue in effect. Page 46 of64 . , , -j , I EXECUTED thb dIY, July ,2010: FOR LOCAL 521, SEW, CTW: FOR CITY OF PALO ALTO: JL Sermer im rril~L NiokRaisch Worksite Organizer 13f\~10GU& Brian Ward . Chapter Chair U?~- . Victor Fadsato Chief Steward Margaret AdIdus Vjce Chair IoelDino Secretary ~J~---s~K~eruw----------------- City Manager Russ Carlsen HIIlIUIll Resources Director Sandra Blanoh Assistant HllIIlliIl Resources Director Marcie Scott Labor Rclations AdministrfltOr Joe Saccio Deputy Director Administrative Services Department Gregg Betts Community Services Director Robert De Geus Community Services Division Manager Darrell Murray, Chief Negotiator (1EDA) Page 47 of 64 REVIEWED: Melissa Tronquet Senior Deputy City Attorney ~ ..... ----- ------'---------- Page 48 of64 ATTACHMENT A . CITY OF PA[OJU.TO . 2009SEIU ,,. ... Job S"m2 SIAn S Sleo 5 ~PPr:'~ ~pprox FLSA 14 -4 I 31 4.127, '.S! 11 77 5, Ill{), I,B( j.4f i~ ~ i3i4 _ ,,5, f- ,1.4 f- ,.4 - '4 -- "I 244 lAesae Buyer , I- N ,1 ,761 :::~ Page 49 of64 -Lead ,Parts Tech , Elect , Malnt.l ; Mach i ; Painter . IWGW ,t S1N".8 Coord 489 IG"" , ~ TB[ 11<A$ SIIIIlem reCh II 456 ~ :or EaulD Meoh 489 ~:;OrMt 283 , 380 HAaw ~ mer """"~ Ind Wa.!e-Insoec iii( I Irwin!, I Wasta H~j7J~ldSVC 306~ 293 1 & ZOO ~ ~T I' ibra~ Asst l Sol 542 ~DI-T ~Spl-TL SvcsSoec I MaintMAcll -s • Lead .. 1.7 ,.7i - t-t- )~.7H~~t- 1.94 i1r-~­ !-±-I-I--I-- Page 50 of 64 .30? 567, 16 ~ ~-'~&'~E"n(-----------+--~~~ ?, Pnllt!.. ,SOM I-IPiiilCi> I Pnllr. .. TPiillr"'- I Powe, ,00' IPrnd I Pmn ~ram 302 I 303 III 3613 :W~ Preiect !"noineer t. Leae ill ,55 1.39 4 3 ',7 -3490 preiect • s 2il9 , Evlc"fiicl ~:+-~,:H-~ I- PageS10f64 ~,749, 4 r.323. :;:+-~ 4 ~ CI1Y OF PALO ALTO ~-.-____ " ___ '""'!2009 SEIU Scheaule in! A·,~n ~~: :;: i*~~~ ~ Public Wk. I install Reoal, r Cert _ !9._ !e. !7.50 !9.44 =I~~~ "I---=f~~~~f-' i"289 0iiIiiSliilf Ceil 1l!:35 13. 1259 lUll ~v,;t TAr.h 30.27"--, 278 ""TeCh Page 52 oC64 1I0n.1 771. i , I 1 APPENDIX B. APPRENTICESHIPS WATER QUALITY CONTROL OPERATOR TRAINEE may lead to positiollB within Water. Quality Control. ELECTRICIANILINEPERSON • LINEPERSON/CABLE SPLICER APPRENTICE: MayJead to Electrician or LinepersonlCable Splicer positiollB._The Utilities Department is proposing to formalize the Apprenticeship programs in the.Electric Section to develop journey level electriciallB and linepersonlcable splicers. TheJollowing are basic concepts/principles to be incorporated: I' 1. Positions/classifications to be ideotified through the normal budget process· three initially. 2. The journey level position will not be a promotional opportunity for anyone other than the appreoticeunderfilling the position, so long as that apprentice is successfully progressing through the program. 3. Employees in Electric Operations who qualify will be giveo flXst consideration for the apprentice position prior to other City classifications or recruiting from outside the City. 4. A letter of agreement will be entered into by the apprentice and the City ideotifying the terms and conditiollB of the program. 5. The program will normally require 36 months to complete. 6. Normal progress through the program will be in periodic increments with formal evaluations. . 7. Salary steps will be established to bridge the Electrical Assistant classification into the journey level classification. 8. A process for initial selection and placement in the progrern will be established. The City and the Union agree to review or develop job descriptiollB to better reflect the qualification necessary to attract and retain successful candidates for this program. It is further agreed that the job descriptiollB will not warrant additional compCllBation. :9. A procedure for removing an UllBuccessful appreotice from the program will be developed. 10. A task force including journey level persons ,vill be assigned to detennme the content and approach to specific elenieots of training. Pllge 53 of64 11. Training will consist of on-the-job (OIT) and after hours elements (study and formal. classes). Off-the-job training costs will be funded by tuition reimbursement and departmental funds. Personal time spent in off-the-job training "ill not be compensated. 12. The apprentice will be under the continuing guidance of anappropriatcly qualified journey level person during OIT. Such journey level persons will be assigned by Mansgement from among volunteers and will receive no additional compensation. 13. Qualifications/progress wilJ be verified by appropriately kept records. 14. Unless specifically stated otherwis.e, reguiar City personnel policies and MOA provisions will apply to the apprenticeship program. 15. This program may become a conceptual model for apprenticeships in other divisions or departments. Page 54 of 64 . -I ! APPENDIX C. ALTERNATIVE 4111 WORK SCHEDULE The City and Union have agreed to the following alternative work schedule for_Public Safety Dispatchers: . I 1. The City agrees to maintain a minimum of 18 permanent dispatchers onjlaid status for this alternative 4/11 work schedule. If the Corumunications Unit falls below the minimum staffing levels for Corumunications for more than l20-days (4 mouths), the City and the Union will meet and confer over whether to continue the 4/11 schedule or . revert to another schedule (such as 4/10) until such time as there are 18 permanent dispatchers on paid status . . , 2. The City agrees that in accordance with FLSA requirements the dispatchers will receive overtime for all hours worked outside of the regularly scheduled work hours of the 4/11 schedule. Page 55 of64 . I I I I APPENDIX D -DEPTIDMSIO~ CLASSIFICATION WORKDAY OR WORK. WEEK VARIATION Section L Exceptions to Standard Workday or Work Week for SEIU Representation . Unit: COMMUNITY SERVICES Arts & Culture Division Volunteer -Coordinator Each week (30 hours); 15 hours of unscheduled time; 15 hours· of schedUled time Library Department Coordinator, Library ProgtaIDS Librarian Senior Librarian Library Specialist Library Assistant Library Associate In a given workweek, staff may work three eight-hour days, one seven-hour day, and one nine-hour day. On a voluntary basis, staff may work five non-consecutive days within seven. Section 2. Rnles Governing Flexible Work Hours. These rules and procedures are established pursuant to Article VI, Section 8, and are an application of Article VIII, Sections. I, 2, and 3 of the Memorandum of Agreement to the classifications of Coordinator, Recreation Progtarns; Produoer, Arts & Sciences Progtams; Program Assistant; Theater Specialist, in the Recreation and Arts & Culture Divisions of the Cormnunity Services Department, and the classifications of Associate Planner, Building Planning Technician, CDBO Coordinator, Engineer, Executive Secretary, Office Specialist, Planner, Senior Planner and Staff Secretary in the Planning and Community Environment Department. (a) Flexible Work Schedule I. Employees in the covered classification shall be permitted to arrange flexible work schedules with division approval, providing that such schedules shall include forty (40) hours per week. 2. Standard daily office hours shall be Monday through Friday. between the hours of 8:00 a.m. and 6:00 p.m. Flexible hours may.occur for supervision of; and/or attendance at, . evening programs, meetings, weekend events, or other progtarns. Page S6 of 64 (b) Overtime I. Emergency call-out work shall be defined as overtime work and compensated per standard City practices. 2. If the need arises for overtime work due to an unusual circumstance calling for extra bours or due to a special event, compeJlll8:tion shall be allowed with prior approval of the Director of Recreation, Director of Arts and Culture, or the Director of Planning and Community Environment, and shall be compensated for, as spelled out in the Memorandum of Agreement. Section 3. 2080 Plan (a) Either the Union or the City may withdraw from the Plan bygiving the other party 30 calendar days written notice. In the event of termination of the plan, the covered classifications will return to an 8-hour or other authorized workday as provided under Article VIII, Section 1, of this Memorandum of Agreement. (b) Provisions of the 2080 Pian are as follows. To the extent that these provisions are in conflict with other provisions of the Memorandum of Agreement, these provisions will prevail. (c) The 2080 Plan or "12 hours per Shift Schedule'~ is an authorized work schedule for the Electric System Operators and Water Quality Control Plant Operators. 2080 Plan Under this 2080 Plan, each employee's hours of work per year may not exceed 2,240. For scheduling purposes, and subject to the Merit System Rules and Regulations, the employee will be guaranteed not less than 2080 hours per year, or no less than 52 weeks at the normal number of hours worked per week. Any employee covered by the Plan who works up to 2,080 hours per year is compensated for all hours worked at the agreed upon rate. The City mlla! pay overtime for all hours worked in excess of 12 in any workday, 56 hours in any work week, or 2080 hours in 52 weeks as the case may be. The rate of overtime wilI be at time!llld one-half the employee's regular rate of pay (or current contract overtime rate, if diiThrent). Shift Schedule , The shift schedules combined must provide full 24-hour, seven (7) days per week coverage for the Utility Control Center and Water Quality Control Plan. The shift schedule shall be a rotating schedule. The Electric System Operators' shift schedule will reach the equivalent of 40 hours per week in five weeks. The 12-oour shifts begin at 7:00 a.m. and 7:00 p.m. The Relief shift shall begin at 7:00 a.m. and!llld at 3:00 p.m. with lunch taken while working. The shift schedule shall be rotating schedule. The Water Quality Control Plant Operators' shift schedule will reach the equivalent of 40 hours per week in two weeks. There will be four 12-hour shifts that begin at 6:00 a.m. and 6:00 p.m. The fifth shift will be a 4/10 shift that begins at 6 a.m. on three days, and at noon on the fourth day. Page 57 of 64 ._) i . I Pay Period Pay periods and workweek for the System Operations will begin Sunday at 7:01 a.m. Pay periods and workweek for the Water Quality Control Plan Operators will begin Saturday at 6:01 a.m. Wages Wages will be based on the City of Palo Alto Compensation Plan, which may vary from time to time as mutually agreed upon . . Overtime Under the 2080 I:'lan, the City will pay overtime for all hours worked in excess of 12 in any workday r 56 in any work week, or 2080 in 52 weeks, as the case may be. Overtime will also be paid fur hours worked when an employee is called in to work other than their regularly-scheduled shift The overtime rate of pay ,,111 be one and_ one-half times (or current contract overtime rate, if different) of the employee's.regular rate of pay. All overtime worked will be paid to the employee. No oompensatory time off for overtime will be allowed with the exception of Water Quality CoritrolOperations. Relief Employees This provision only applies to the Electric System Operators. The five Operators share the relief week evenly as they rotate through the five week cycle. Relief employee(s) will be used utili2ed within the 12-hours shift schedule only when relieving for the System Operators on shift When not relieving, they will work four eight-hour shifts. When a vacation relief week results in a 36-hour or 48-hour week, the operator working said week shall be paid at one and one-half (11',) time their normal rate of pay for hours that exceed thirty two (32) hours. Relief Duties [ This provision only applies to the Electric System Operators, An employee who is scheduled to perform relief duties shall be available for duty in revolving shifts on any day of the week and niay be assigned for relief in any shift without advance notice. Relief employees will be paid standby pay during their relief week Standby This provision only applies to the Electric System Operators. An employee who is on relief duties is covering standby, and will be oompensated acoording to Article VIII, Section 7 (a) of the Memorandum of Agreement, If the relief employee is on vacation or Page 58 ()f 64 otherwise unavailable for relief duties, the employee(s) on their three or four-day off period will be first on standby. Management reserves the right to utilize Management personnel as Operators on a short­ term, as needed basis, if no Operator is available. filling Vacant Positions If the City elects to fill a vacancy other than by reassignment of the shift or the utilization ·of prior or succeeding shift personnel, the following procedure shall be used: Employees will be called according to their position on the Pre-arranged Overtime List (POL), with the person with the lowflst balance being the fU'st one called. The purpose of the POL is to fairly distribute the available opportunities. If an employee turns down the overtime, that arnonnt will be added to the employee's POL balance. If an employee cannot be'contacted for such assignment, the employee will not have any overtime added to their POL account balance. Shift Changes Shift changes caused by scheduled time off or sick leave will not be considered an official change in shift. Maximum Hours Worked No employee shall work more than 18 consecutive hours. Rest Period In a 12-hour workday, employees are entitled to a rest period of 8 consecutive hours after working 6 hours overtime during the 12 hours immediately before the regularly scheduled hours of work on a workday or non-workday. Holidays . Employees who begin their day or night shift on an observed holiday will receive overtime premiurn in accordance with Article X, Section 3 of the Memorandum of Agreement. Employees who work a schedule where a regular day off falls on a.holiday will be paid for the hours they would have normally worked on that day. Employees working for Water Quality Control Operations may accrue holiday time convertible to vacation. Sick Leave Sick leave will be earned as indicated in Article XII, Section lea) of this MOA, and shall be charged in increments of one hour. Floating Days Off Floating days off will be converted to hours at eight hours per day and credited to the employees' vacation bank for use as. scheduled vacation. Page 59 of64 I Vacation An employee's total entitlement will be converted to hours (eight hours = one day). A workday will consist of 12 hours, and employees taking vacation will be charged 12 hours of use. Two week notification is requited for any scheduled time off. Only one person at a time may be scheduled off. . It is the intention of the City that vacation be taken in units of one work week; however, with approval ofhlslher supervisor, an employee may use hls/her accrued vacation in units of less than one work week. , Meals Shift employees shall be pennitted to eat their meals during work hours and shaH not be allowed additional time, therefore at City expense. . Shift Premium Shift premium will be handled in accordance with the current Memorandum of Agreement bt)tween the City and the Union, Article VIII, Section 8. JuryDuiy Time off for jury duty which occurs on a regularly scheduled workday will result in the employee being credited with up to 12 hours worked, for pay purposes. Employees called for jury duty who are working the evening portion of the 12-hour schedule will be placed, for payroll and schednling purposes, on the day shift for each scheduled day :mch employee is required to report for jury duty, and will not tie required to work the evening 12-hour shift before or after being required to report for jury duty. However, :mch employee shall return to work on the day shift upon being released :from such duty if there are at least four hours remaining prior to the end of the day shift. All other provisions of Article XII, Section 5, of the current Memorandum of Agreement shall apply. Page 60 of64 , -, ; APPENDIX E. IN-LIEU PREMIUMS L For employees in the following operations. assigned to work schedules other than Monday through Friday, the calendar day will be considered the holiday for premium pay of in-lieu scheduling purposes: Communications Water Quality Control Animal Control GolfCollrSc Utilities Services Landfill Open Space Electric System Operator 2. If December 24 and 31 fall on Sunday, then the preceding Friday will be designated for purposes of excused time off, except in the case of Community Services staff who may be scheduled to work on Saturday, in which case Saturday will be designated for purposes of excused time off. For Open Space and Library personnel, designation of excused time offwill be based on Park and Library schedules and employee preference. Page 61 of64 APPENDIX F. COMMUNICATIONS DIVISION PROMOTIONS 1. Promotional opportunitieS 'Within the Communications Division will be carried out in compliance 'With procedures set forth in Article VI, Section 5, of the Memorandum of Agreement between the City and SEW Local 521, except that: a. In sub-paragraph (e) of Article VI, Section 5, the term "seniority" shall be defined as division seniority . . b. Division seniority will be calculated from an employee's first day of employment in the division, minus any unpaid leave. Page 62 afM J l i -.i ! i ! APPENDIX G: SIDE LETTER OF AGREEMENT SIDE LEITER OF AGREEMENT ON CPA-SEIU CLERICAL STUDY 1. The parties will meet and confer over newly proposed clerical job descriptions. 2. Upon completion of the above meet and confer process, the City will issue any new . or revised re-allocation letters to affected clerical employees within IS working days. 3. The Union and/or affected employees will have 15 working days to appeal any reallocation to the Human Resources Director. 4. Allocation appeals will be heard by the Humli¥l Resources Director or designees within a reasonable timeframe agreed to by the parties. 5. Decisions from such appeals will be issued by the City within 15 working days of eaeh appeal. 6. The Union and/or affected employees will have 15 working days from.receipt of the allocation appeal decision to further appeal the matter to Binding Arbitration, pursuant to the provisions of Article XIX, Section 4, Step IV (Grievance Procedure) of the MOA. 7. The City and the Union agreed to conduct a clerical study in May 2004. The stody was completed in May 2006. It is expected that classification and compensation changes will be made as a result of this study. The City and the Union are to meet and confer over the results oftbe study. Any changes to classification or compensation as a result of this process will become. effective 5/1/06. Page 63 ot64 -i ! , ! APPENDIXH Withdrawal of Unfair Practice Charges and Grievances Removal of Letters of Reprimand Upon ratification by the Union and approval by the City Council, Union and City agree to dismiss the following Unfair Labor Practice charges and grievances, The parties agree to take all necessary actions to complete such dismissals: • City v, S,EIU (SF-CO-210:M) • SEll] v. City (SF -CE-690-M) • City v, SEIU (SP-CO-214-Ml • SEIU v, City CSF-CE-704-M) • SEIU v, City (SF-CE-729-M) • Grievance #62534-521 • Grievance #59669-521 Upon written confinnation that the charges and grievllnces above have been withdra\\1l, the City will remove Letters ofRepritnl!!1d associated with the "involulltary fui:lough" (characterized by City as unlawful strike), . Page 64 ai64 ATTACHMENT "D" Resolution No. 8994 Resolution of the Council of the City of Palo Alto Imposing the City's Last, Best. and Final Offer to SEIU, Local 521 Pursuant to Government Code Section 3505.4 WHEREAS, the City of Palo Alto (hereinafter "City") and the Service Employees International Union, Local 521, CTW (hereinafter "Union',) (collectively referred to as the "Parties,,) were signatories to a Memorandum of Agreement ("MOA ") !hat expired JW1e 30, 2009 setting certain terms and conditions of employment for employees in the SEIU General Employee bargaining unit; and WHEREAS, beginning May 4, 2009 the City and Union negotiation teams have met and engaged in extensive negotiations over the terms of II successor to said Memorandum of Agreement, meeting approximately twenty six times in an effort to agree on the terms of II successor Memorandum of Agreement; and WHEREAS, since presenting its initial proposal to the Union in May of 2009. the City made concessions in its negotiations with the Union, reducing its two year . contract proposal by nearly $2 million each year over the course of the meetings between the Parties; and WHEREAS, although the Parties reached tentative agreement on at least seventeen items. the City and Union remain far apart on major economic terms; and WHEREAS, on October 16, 2009, the City submitted the City's last, best and final offer to the Union and II Jetter explalning the terms of that offer; and WHEREAS, on October 20, 2009 the City met with the Union negotiating team to further discuss and respond to questions about the last, best and final offer; and, WHEREAS, at the meeting on October 20, 2009, the Union verbally rejected the City's lest, best and final offer; as a result of the Union's rejection, the City's last, best and final. offer did not lead '10 an agreement on the terms of a successor Memorandum of Understanding; and WHEREAS, after the Union rejected the City's last, best and fmal offer at the meeting on October 20, the City declared that the Parties were at an impasse and informed the union verbally and in writing; and . WHEREAS, P1ll'SlUlllt to the City's Employer-Employee Rela,tions Rules contaIned in Chapter 12 of the City's Merit System Rules and Regulations, the Parties discussed potential methods of resolving the dispute on October 20 and 22, 2009; and 119102l ,hia61t81 1 WHBREAS, the Parties could not reach agreement on potential methods of resolving the dispute and concluded discussions on that issue on October 22, 2009; and WHEREAS, there are no mandatory impasse procedures and the Parties are not required to proceed to interest arbitration; and rernlllllilt an lIllpllSSe; , WHEREAS, in such circumstances Government Code section 3505.4 authorizes the City to unilaterally implement its last, best, and final offer; and, WHEREAS, on October 22, 2009, the City gave the Union written notification that the City Council would consider a resolution to unilaterally implement the tenns of the City's last, best and fmal offer at tha City Council meeting on October 26,2009. NOW, TIlEREFORE, the Council of the City of Palo Alto does RESOLVE as follows: SECTION 1. ModificatioDs of Tel'lllS. The following changes in the terms and conditions of employment of members of the SEW General Employee bargaining unit shall be implemented as set forth below, effective immediately upon adoption of this resolution except as otherwise specifically provided below for specific teroos and conditions, with additional terms underscored and deleted terms identified by over-striking: Modifieatitm 1. The terms ander which re1esse from duty to conduct union business is authorized, currently set forth in Article IV of the MOA, are hereby moditled and imposed as follows: "Section 3 • Release Time. It is agreed that, as long as there is prior notice as specified below to the Supervisor with no disruption of work, stewards shall he a1lowed'reasonable release time away from their work duties, without loss of pay, to eel iii representiftg a unit employee or employees on grievances or matters within the scope of representation, including; (a) A meeting of the steward and an employee, or employees of that unit related to a grievance. (b) A meeting with 'Management. (c) Investigation and preparation of grievances. Grievances may be transmitted on City time. All steward release time shall be reported on time cards. . 091m 8l> 82.mal I Section 4 -Advance Notification Prial teBefOl'll Leaving Work Location. The Union agrees that the steward shall give no less than one (1) full business day advance notification to hiather supervisor before leaving the work location. in those cases involving' this section eJ(cQ,pt that the requirement for !l full business day advance notice to the reolacement n;presentative's supervisor shall not apply." Modlfieatl!!n 2. The terms under which classification changes and reclassification requests are managed, currently set forth in Article VII of the MOA, are hereby modified and imposed as follows;' ''Section 4 .. ClasFifipation CbampaL (Ii) During the course of this agreement, the Union and affected employees shall be notified in advance of any contemplated changes in classification description, wage range or steps. ~uch changes shaI1 be .subject to the meet and confer process auriag the term ef t1HsMemElfllB!i1ll'll Elf ~emeBt. Such meet and . confer process shaI1 be concluded within no more than thirtY (30) days fullowing deliviu of the City's notice to the Union. Jfthe Union and the City cannot reeoh agreement on the appropriate pay level from a job so reclassified. the elllSsi:!ielitiell ahSH fIl'.'elt Ie itsfalllll$' stMlle Union may. within ten nO) City busilless davs following the conclusion of the meet and confer ProceSS described above by deljyery of v.Titten notice to the Hurn!m Resources Director, reftr the diSPUte oyer the proposed wage reoge or ste,ps to arbitration at Step IV of the Grievance Procedure set forth at Article XIX of thjs Memormdum of Agreement. Section 5-Reqlawfication Regyests. (a) An employee or hisIher representative may request in writing a re-evaluation of hislher job Pased on significant permanent changes in job content or significant discrepancies between job content and classification desoription. The request must be in writing, contain justification and may be made only on an annual basis during the period of September 10 through October 10. A statement by manilgemeIit that a job reeValuation request will be suinnitted with the departmental budget does not relieve an employee from the responsibility of submitting hisIher own request during this period. The Afladri9I!Btef ef Cempelll!aH9a Human Resources Director or his or her designee will initially 2 respond to such requests within ninety (90) calendar days by notice to the employee and the union; however, this timeline may be extended if necessary. Suob. response shall include any reclassification to a different classification or changes in description that the City believes are warranted and any related . changes in applicable pay range or steps. If meetings are held, the employee may request representation. If a reclassification is approved and results in an increase illsa:lary, it -shaH~e-retrcactive-to-the date-the Bmp!oyeeod:Jnion frl~ request fOr the reclllSSification. (b) If the employee or Union disagrees with the accuragy of the description of duties . resulting from the S!:!:!4y conducted pursuant to subsection (a) of this Section or with the wage range or steps assigned by the City as a result of the study. the ~ploYeefl or Union rusy, within ten (10) Ott business davs of delivery of notice of such determination. appeal ~h decision st*.ieet Ie tiltis fII'Eleess iii l1eeepe-with under step IV of Article XIX. Grievance Procedure. (c) In a dispute under Section 4{a) Of section 5(l:!) above. the arbitrator shall render his or her decision on the appr!J.llriate wage range or steps within twenty-one (2 n days after the initial hearing date. The same time line will be observed for @mules over the accuracy of the revised classification description. The parties will notify the arbitrator of thl. deadline at the time of the arbitrntor's selection. In ~aching a decision on Wl!!le /'!luge and steps under Section 400 or Sib) above. the arbitrator shall base his or her award on the factors traditiqnallv taken in1g accgunt in the establishment of compensation. When decidlng a dispute over the !IllC1II'lICy of the revised classification description nnder section S(b) above. the arbitrator shall identify the modificatioiJs of the ore-existing cla'!!jflcatjon ngsaty to accurately reflect the pennanent changes. if any. that lw.ye been inW!emente4. Upon receipt oethe arbitrator's award. the City shall implement the revised alas.iDeation and wal!!! range or stt:ps as provided in the award except as provided under subsection S(c} of this section below. Not withstanding an arbitator's award pursuant to any appeal process,the City retains the right to forego implementing the changes and the proposed changes shall revert to the status quo as it existed before tbose changes in duties occurred or were proposed. (d) An employee may submit a request for reclassification for the seme classification no more than once every twenty-four (24) months." Modification 3. The tennsgoverning the realignment of p!>sitious and management of the sllrvey data base, currently set forth in Article vn of the MOA, are hereby modified and imposed as follows: "Section B • Rea!i!!!1!ll!llltS and Survey Data Base. (a) Management and the Union have agreed to II compensation survey data base structure which identifies specific benclunatk classifications for job families. . clmifW!Jtious within the job families of each benchmark classification. He 0910111118261181 3 elassifiemi_. IiUIV!lY agencies til be 91!P.<eyeEi and SU~ classification matches. Survey Cities include: Alameda Berkeley Daly City Fremont Hayward Mountain View Rlldwood City San.Jose- San Mateo Santa Clara S. San Francisco --8wmyvale- The dattlbase is intended to elimi!l~e .4upu~e efia!ts i!l8~Bg ana m!enElaat d~ dlsp1HeS provide one source of information concerning how the compensation paid to employees in barglning unit lob classifications compares to that paid In' other employers. The Cjty will update the survey databese ~ tIjlliateEI b;)' :Msesgemellt and send the Union a copy sent te the USeB six weeks pftef te the befure ~iration of this agreement. This survey will bee_ the ellllis fer consjdered in oonneclion with special adjustment proposais in anccessor agreement negotiations. By agreeing to a survey databese, neither Union nor Management is under obligation to propose or agree to sPecial adjustments. Ell) A1 'IIle feE!Uellt ef ei'llleJ; ]l~'; tbrBglmellt aee the U.Ili9l! lBllf periedieally ~v the data billie 9INettlfe. AJ!]luatiee fer re&!!1WM1tli review !!lllllt be !!l!Ide II.EI later thai!... QataDef 19 sf 'lila ~!lP befere eealmet e!!I'imlisa. Slieli fe>liew lI'I:IIy iBe:llltle en t 'aaasa ef tie elassHleflti8M a.eEi Ml selefy SV+"'&)' at e1ilteE OOjeeti'\'e liMa." Modlficatiori 4 •. The teIIl1S under which the City will provide shirts to certain employees of the Utilities Division, currently set forth in Article IX of the MOA are hereby modified and i,mposed as follows: "Section 1-Uniforms (e) Except in the UtUm Divjsion. ~ City will make available. as 'an alternative to the efllllge shirts CWTently provided under Section 1(a), six (6) ~n polo shirts. Emplovees in the Utilities Division wm be provided with six (ti) long­ sleeve shirts !llld two polo shirts. Employees will be responsible for laundering the shirts. Damaged or otherwise unwearable shirts will be returned to the emolovee's su.pervisor !llld ~Iaced by the City." Modtfl!ll!ti!m 5. The tenns under which floating days off with pay will be scheduled, currently set forth in Artiole X of the MOA are hereby modified and imposed as follows: "Section 5 -Floating Dan Off. Floating days off with pay will be scheduled by Management as follows so as to produce three-day weekends. Nothing herein shall be cO!!!!trued to reguire duplication of it holi¢1y alreasly granted befure tbls Resolution ~: 0il1022 s118251181 4 August 2009 One floating day gff . September 2009 One floating day off March 2010 One floating dllY off The following conditions will hold: at least thirty days in lIIlCe. (b) If in confonnam::e with this section, Management is uriable to schedule a day off in the month indicated, for reasons of shift operations, work scheduling or any . other reason, the floating heliday will then be added to the employee's vacation accrual on the first pay period of the foUowing month. (c) If an employee fails to take a day off as scheduled by Management under this section, the day off so scheduled will be forfeited." Modifleatlol! 6. The terms under which employees accrue vacation, consistent with the existing side letter between the City and Union on the 8IlIlle subject, ere hereby memorialized and imposed as follows: "Section 1 -Vacation Accruals. Each employee shall be entitled to an annual paid . vacation, accrued as fullows: . (a) Less l8tm few f1) ~ First day of continuous service through the last day of the fuurIh (4111.) year: 80 heurs vacation per year. . (b) First day of the fifth year of continuous service through the last dav of the ninth ~eigI!t (8) yeaM!,; eelltinfteus sl!!¥.ieel 120 hours vacation per year. (c) First dey of the llillditenth (lOth) ~ear of continuous service through the last day of .!l:!\l..'lllil!leel\ (13) fourteenth fl4t ) years' sea_slils sElif'jljee: 160 hours vacation per year. (d) First day of the felilrtellB~fifteenth (15th) :rear of continuous service through the last day ofthe eighteel\ (t8)!!inereenth (19:") years' eaatillB61!9 sl!!¥.iee: 180 hours vaCation leave per year .. (e) J?liilMBIIBTwenty (20) or more years: 200 hours vacation leave per year. Employees may a<)crue up to three tirnas their annual vacation leave witheut loss of vacation days. In the event the City is unable to schedule vacation and, as II result theracf, the employee is subject to 1088 of accrued vacation, the City shall extend the vaclltlon accrual limit up to one year. in which tima the excess vacation .In1lllt be scheduled and taken. As long as there is no interference with departmental operations, there shall be PC unreasonable restriction of increments of use. Employees shall complete six (6) months' continuous service before using accrued vacation leave." Modlfi!littlon 7. The folIowing terms under which employees will take unpaid furlough days are hereby imposed:· employees to take unpaid furlough hours off to offset any reimbursements requested and . paid durlWl FY O!HO pursuant to Article XIV. section 10 (Tuition B!jmbursement and Twining Pro!l11Wls) of the expired City-SEIU 2006-09 MOA before the elimination of the Tuition Reimbursement program. The dates and time:; to be observed as ummId furlough time wi!! be established by the affected employee's department head or his or her designee after providing the employee an opportunity to express his or her preferences." ModlOe.ation 8. The terms under which the City, employees and future retirees will contribute toward and provide health insurance benefits for members of the General Employee unit and future retirees, currently set forth in Article XIV of the MOA, are hereby modified and imposed as follows: "Section 1 • Health PlBn (a) Active Employees L JMreetP/$ lIUQ!7 tIhe City will pay up to the monthly medical premiUm for the 2~d ;nost expensive plan among the existing array of plans. exeeot that for increases that go into effect after January 31. ZQIQ the City and p!!rticipating . employees will share equally the first ten percent nQ%'! of each premium increase that Occurs for the plan in which the employee js enrolled at their respective level of enrollment (j.e. one party. two party. famjiYl. If a given increase exceeds ten peroent (lO%)' the balance of that increase will be paid l:!v the City. If sufficient increases occur that the emplQyee portion of the premium fur the plan in which he Of she is enrolled ~guals ten oercent (10%) of the total premium at the emplovee's level of enrollment, the emplovee's share of further premium illOOj •• flI! shall be ten Percent (J 0%) and the City's share shall be njnely percent f9Q%). City medical premium contributions will be ptOIated for part·time erooloyees hired Or IlllWly assigned to a part-time work schedule on or after Januant 1. 2010 based on the number of hours Iler week the part-time employee is assigned to work. If PERS changes the plaits it offers. the City and the Union will meet and confer over the City cantinuing to provide an equivalent benefit at an equivalent cost. Effectiye February 1. 2010, with premiumincreasfll! tlmt go jntp effect after January 31. 2010 the Citv sball con1ribute to its retiree iUSWance trust (the PERS retiree medloa! trni¢ or its successor) an amount not less 1han the amount of premiums paid by active employees in the bargaining unit in the 6 i -1 !l1!lI!OOtive calendar year as a result of the sharing of the first 10% of each mmjum increase as provided above in this parlllm\Ph I. The City shall make one contribution in the fiscal vear '" coyer the entln'i amount payable to the trust under this paragraph !lll of the nrecedjng December 31. . 2. Filf the term sf thls AgreIllllMt Through December 31. 2009. the City will ::::::::::::::::::::~I~~~I~~~e~Q~llm~D~~~<m~~~E~R~S~~£·~~~,~w~mr~~~'w~h~~~~~~C~~~~·~~m~~~=··~·::::~~~ 2006 open enrollmeut period and remain in PERS Choice for maximum calendar year eo.payments for unrelmbursed costs inCUll'ed due to the difference between the PERS Care maxim.um calendar year eopayment· responsibility and the PERS Choice maximum calendar year copayment responsibility. The tota! payments per employee will not exceed $1000.00 annually unleas employee has a one dependentlfamily coverage in which case annual payment will not exceed $2000.00. The City has agreed to provide an annual amount of $50,000.00 to add!:ess these costs. If total claims for reimbursemant exceed available funds, the City will use any unused tuitinn reimbursement. funds budgeted for SEIU for these prupDSeS. Any money left from each year will carry over to subsequent years of this contract. 3. The City agrees to offer II prl;lgram to active. SEIU employees enrolled in PERSCare as of 9/1/06 who elect the PERS Choice health plan in which the City will reimburse the employee and/or dependents for any covered medical expense which exceeds the $2 million Lifetime Maximum Benefit. (b) Health Plan Co"erage for Future Rellrees Hired Before January 1, 2005. Monthiy CItY-paid premium contributions for II retiree-seleuted health plan through the CalPERS Health Benefits Program will be made as provided under the Public Employeea' Medical and Hospital Care Act Effective 111107 the City's monthly employer contribution fur eacJi retiree sbaJ.l be the amount necessary to pay fur the cost of his or her enrollment, in a health benefits plan up to the monthly premium for the 2nd most expensive plan offered w the SBIU . employee (among the existing array of plans). However. the City OOlltribution for an emplovee hired before Jan!ll!!y 1.2005 who retires on or after January 1. 2010 shall be the S!!me contribution amount it makes from lime to time fur active City emp!pyees, except that emplpyees retiring after Jan!ll!!y 31. 2010 but on or before June 30, 2010 shall not be required to pay any premium increase that first takes effect after January 31.2010. For 2006, the contribution for dependents is ~ (~~% in 2097.li!) of diffi:rence between the applicable "Employee and One Dependent" or "Family", maximum employer ~ontribution for Active SRIU employees and the maximum monthiy employer conttibution for "Employee Only" coverage. This contribution for dependants will increase annually by 5% of the difference between the single party premium and the two or family member premium, unill such time as the . amounts are equal. Q91022Bh 8261181 7 (c) PERS -Health Benefit Ve9ttng For Future Retirees £f!ectJve January ], 2005. The CalPERS vesting schedule set forth in Government Code section 22893 will apply to all SEIU employees hired on or after January I, 2005. Under this law, an employee is eligible for' 50% of the specified employer hea.Ith premium contribution after ten years of service credit, provided at least five of those years were performed at the City of Palo Alto. After ten years of service credit, each ~;;;;;:;;;;;:;;;;;:···;;;;;;;;:;~;;;;;: ... ;;;;;:···:~-~=;;;;-.:.-':~~~di~·Ii~;~7~:e~·~tly~ear¥5.~;~~~nIi~~~~~a~~c~fo~· ~~=~·~~~~;;;s~em~·H~'c~:~:S~di~~~th~~~e~ein;1· e!~pi~!~y:~r~Wll~···~·~~begntr~k~~~:r~~~I:;;;;;;;·-···:-';:·-·=·;;;·=;;;;-=·-·=-:·~·- upon retirement for 100% of the specified employer contribution. FWwever, the . maximum contribution for family members will be 90% of the specified employer contributioo. The City of Palo Alto's health premium contribution will be the .. minimum contribution set by CalPERS under section 22893 based on a weighted average of available health plan premiums. Cd) Coverage for DOlmlStic Partners. Do'fMsllc Partnership Registered with the California Secretary of State. - Employees may add their domestic partner as a dependent to their elected health plan coverage if the domestic partnership is registered with the Secretary of State. Domestic Partnership Not Rilglsteret/ With the California Secretary of State. Domestic partners who meet the requirements of the City of Palo Alto Declaration. of Domestic . Partnership, and are registered with the Human Resources Department, will be eligible for reimbursement of the actual monthly premium cost of an individual health plan, net to exceed the maximum monthly City employer_contribution for one-perty coverage under the CalPERS Health Benefits Program for SEIU members. Evidence of premium payment will be required with request for reimbursement. (e) At City option during the life of this agreement tmd if otherwise available, the City may offer an incentive payment in lieu of City-paid dependent or family . medical coverage fur those employees who voluntarily decline dependent coverage. (f) Alternative Medical Benefit Program. If a regular employee andlor the employee's dependent(s) are eligible fur medical illSUIance through any other employer-sponsored or. association-sponsored group medical plan, the employee may elect that alternative medical insurance coverage through the other employer­ sponsored or aSsociation plan and waives hlsIher right to the City of Palo Alto's medical plan insurance coverage for same individuals. Employees alecting altemative coverage and waiving City coverage_will receive cash payments equal toepproxirnately half of the "average monthly-premiums" for their medical insurance coverage. "Averaged monthly premiums" are the average of the Kaiser HMO. Blue Shield HMO and PERS Cboice PPO premiums of the employee's City medical Coverage available through the CalPERS Health Benefits Program. 1'M i'tft8S fe, U!Q()6 lIfE ell fellews: 091022 ill 826l18l 8 ODs Part)'! $29S.00 TM PiIA;'1 !>41GJlg Family: $S3G.99 The rates for 20o;t2 are lIS follows: One Paity: $2311.1111 $26Q.QO Two Party: $4(;9.1)1) $520.00 Family: Sa9S.91l $675.00 fgllf the State of California or federal government requires the City to participate in and contribute toward coverage under any medical plan outside ofPBMflCA. the City's total liability for enrolled emPl!>yees and retirees and their eJigible family members shall not exceed what the City would have paid toward PEMHCA coverage in the absence of such state or federal plan. The City will meet and confer with the Union over the imoact of such change on maltel!! within the scope of !'!l!1f!!llA!lt9P before implementing any change. . !h.LN otwithBtandinl !!.!IV mecified effective date set forth· in this section I. the City will not imJllement reductions in ita health in!lll1'8tlge CQQlributionl! for active employees or future retirees without jssuing Ii general notice of its intent to do so at J",,§t thirtY (0) days before the actuall,lffective date of the change (whether the same or different than the s.pecified dateW above). This paragraph shall be deemed null and void as oflune 30. 2010," Modifigriinll ? The terms under which the City will reimburse tuition and related expenses incun:ed by members of the General Employee unit, currently set forth in Article XIV of the MOA, are hereby modified and imposed lIS follows: "Section 1Q' ... IMmel R;eimlrm,eftl8f1t amt Training Programs. w-City "i\'iI:l !eimh'tl!ol!e eJEjleBlles fer He, haeks aad ew'I'ieul1W iles iRewa>ea hy HeR ~aieMly empieyees 'I1I'ithI!I tke l'ejlfeS6Bmften !Il!it, 'Ie II fI!2l6R11W sf $1,Q9Q lie! ftseaI yaat', fer elasses gi¥eR &y lie_Site!! institIlae!lS ef 1efH'Biag e! llI!iJfeVI!!! epeei&lilll!a tmiaiftg gl9'aps The City ",'ill aise !'aim1:mfSe prefessiesal: aaseeiMiea RIeIl1!!erlII!iJ!s _ eel'!ferel!ee ~ fees-, prefeasle_ lie. _ IlI!fi,eSiaale. Fer plIIl!9SeB sf 1Ais ea9seetien, Wiman dellS l\et i_lie eeslsilf eEjUiplB\lali f:lf teale (alee. fer eelllJ'lltei' llftl'liwiU'<I IIIl.d l1El~vare), if tke empley.e may lEeep Sftaft items at die e!'Id eftke Bemose. ~ Pla'ehase Elf jell !'elatea e~lol!e! se~"'C!'e, llarGwe!e, lHgh Silled ia~et'II.et aeeese,teieealMulnieatieB .iPmeM IIIl.d hell!le effiee e~ may I!e!e~ea 1i!1der tke SeatieB Ell) $1,001) _eft reiRilMBemeat lleB.f!IU. c-eles (i.e. .jll.'iater iM; p!Ijlef,·~, ate.) de !let ~Ify fer I'IlimMsemefit. The Be!! J're&atie-r !'eEjUi!'el'fleftl ",,'ill lie waizle<l fer 091022 ah 821l1l81 9 p!'el!eSeMi'y eJBil1eyees ,,;hen llltilmiltiftg l'eiat_eftieJl:t fef jel! re!jUil!er:! eeftii!iaaQ_. A-Il pi'ElpiIiIIl eligiBle 1111_ tlU!! seeliell _et eitlier ee~llte tEl IlIe eJBilleyee's jEll! pel!ie.tatll!lee ,,1' l'fEIl'Iare IlIe emp!eyee fer e!hlill! City fle~, . EEl I'IIlIIlt be !IJlfIfe'l8a Hi 1lEI.¥!mee. City slfiflleyees wishing tEl eagege Hi eElueaiieli&lpi'El8l'!IiIIIs iIi'leli':illg VI&I'Jeftg ftme BliIY 'be gTimtea pasehetHIea time if Elopllrtlftli\l!l!al epeM!ieas permit. ~~-~-'-~-:;;:;;;;;;'--~~~~~~~~~~~~~~~~;E;:;;;:;;:;:;;;:;;:~ . (eW Employees assigned by the City to IIItend meetings, workllhops, Dr conventions. , . o(their professional or technical associations shall have their dues and reasonable expenses paid by depattmental funds and shall be allowed to attend such workshops, II1Iletings, and conventions on paid City time. (tit Ra~ fer tI!ffitJft Teim!lI,fS_t will ae EletermiRee tEl ea 'IIIuaele meelft_less saiHeieat Eie$1lft'lentatie!l is jlfB'fiEleEi tEl lIlIflI!ei't hew '!Be ea_a Sf slll!lifltlris relatea te iRlpi'El'ling J!wfefm_ iii the emp!eyee's _at pBsitiell.ReimImMement fe~ may be !!UbImtea at aay time, we will ae eatehjlfeeeseeEl ell a ~e!ly aams. . (e) Health club/gym membership reimbursement of these expenses is tsxable to the employee, (fh) City will reimburse fur travel, meals and lodging while away from home attending an· edlUlational conference that the supervisor authorizes as being job related or which will improve an employee's skills. Per City Policy and Procedure 1-02, the Pre-Travel Authorization Form should indicate expenses thet . will be paid.» . Modification 10. The terms under which the City and employees will contribute toward and provide pension beuefits for members of the General Employee unit, currently set forth in Article XV of the MOA are hereby modified and imposed as follows: "Section I . PERS Continuation. The City will continue the present benefits under the Public Employees' Retirement System 2.7% at 55 tbr qoyees hired before January 1, 2010 or the later effectiye date of the 2@60 formula for new hires as described herein. The City shall amend its contract with CalPERS to provide miscelianeous employees hired on or after the effectiye date of the CalPERS c()lIlmct amendmg with the CalPERS retirement Connula two PerCent (2.0%) of final salary at age sixty (6Q). The City will implement this change on Januarv I, 20 1 0 or as soon thereafter as polisib!e, Section 2 • Employee Share. Ilft'eattle~' 1, 1981, tile City agreed te :\!ay!he '7% _pies'ee!s ~ se~9!!' tEl the PllaJie Bmpleyees' Relifemeat System (PERil). SiHelive the flay flllfiea ill.ek!;W,'ij Elf !/~ the _playas share efllle PBRS esatftlmtie!t wUl iReease tEl 8% hat 7%, aIIiil the City vJil! flay 7% aIIiil all emplGyees will J!!IlY 1% Mille 8~' _pleyee share. lilffeeli¥6 the J!!IlY pened ieehlBive sf 1Illld7 !ill eEmployees currently pay two percent 12%1 and the City pays six 0!>1tl22 sh 8261181 10 percent (6%) of the eight PerVDt (8%) employee contribution toward the 2.7 @ 55 pension formula. Effective with the pay period including December 1,2009, employees under the 2.7 at 55 fotmula will pay an additional ooe-m.fB'percent ~ toward 2.7% @ S5 for a total of ~Ilight p!lNent (S%) of the PERS employee-share contribution. The City contribution of Ihe PERS employee share will simultaneously change to (; zero percent (0%). Effective June 30, 2010. the PEBS employee share "ontnDutilmm~IID!Jl!!U!~ llensioiffmip\ila sIla!1:C1i:ange fjffjve ... and three quarters oercept (5.150/0) and the City's contribution shall simul1aneously change to two and one->luarter Pement (2.25%) ofpay. For employecs hired on or • J!IIlllIItY 1. 20 10 or such later date as the 2.0 @ 60 formula is implemented by the City. as provided in section 1 above, employees covered by that fommla shall PAY five percent (5%) of pay toward the seven pereent (7%) employee conIributi!lll and the CitY shaIl pay two percent (2%). Howeye!'. if PERS laws or rules require that the contribution rate of employees· toward the respective !I!mllo.yee contributions under the 2.0 @ 6Q and 2.7 at 55 formulas must be the same, the uniform employee contribution rate Shall be six percent (6%) with the City paYing the l:lllIlaining percent'iII for the AAlllicab1e formula. Section 3 -Conversion for Final Twelve Months Prior to Retirement. Notwithstanding Section 2 above and pursuant to Government Code Section 20615.5, upon ruing !I notice of retil:lllllent, the +%amount of the City-paid PERS employee contribution will be converted to a salary adjustment of equal amount on a one-time irrevocable basis for the fina\ twelve montbll immediately prior to retirement. For this :final twelve-month period the employee shall pay PERS employee contributioll8, Bf:fee!i-\~ .the pay periad iMlamve af 1~e.1Q7. J.MSlHIIit te Gevemme!'lt Geda SaMieft 2961a.S, l:ipall Neelviag III!; elftpleyee's Retiee af Ntifl.lllleflt '!fte ~ peid PEaS empleyee eelltfie!ili:1II!; fiIW 'lIHiBe eaft,<el'teEi 1e a salmy IIE1jI:llltmeBt sf 81!:1Ial. !lIIlelI!:It eft a • time iH_eahle !!asia fop the Me! w...wie meBths lIHieHely . helert ~ 'lI'itll!a 7%. Pel' *'He Me! RveR'S _til pe!'ied '!fte -mayae !!hall !1&f the iWl8l!~ PBRS ii!'B.lIleyee eeB!fib!ili:e!I!i. 'Bffeetive the llllYpefied iMllIsi'.~ ef7IGIIG7, ~ til Gie'Jel'III!la!It Gade gsetieR 2961S.S, upon receiving an employee's notice of retirement the City-paid.PERS mnployee contribution that will be converted to a salm:y adjustment of equal amount on a one-time irrevocable basis for the flllal twelve months immediately before retil:lllllent will be ~ the !I!!lOUIlt of the IPPlicable employee-paid contribution set forth in section 2 of this Article. For this fina\ twelve­ rnonthperiod the retiring ~loyee on the 2.7 at 55 formula shall pay the full &%Percentage of the applicable PERS employee contributions (8% for emplQyees on the 2.7% at 55 furmula and 7% for emnloyees on the 2.0% at 60 forrnJlla)." ModiflllRtloB 11. The terms under whiehElectrical System Operalnrs are cornpensated when performing certain relief duties during their relief cycle, currently set forth in Appendix D of the MOA, are hereby modified and imposed as foUows: 091622 sfl826!13! 11 _-.-i "ReHefEmployees This provision only applies to the Electric System Operators. The five Operators . share the relief week evenly as they ro~ through the five week cycle. Relief employee(s) will be 'l!ti!il!eused within the 12-hours shift. schedule only when --relievlbg foube S~erlitijlnnshlft.-'Whennotrel.teyln!!, they-willworkfbut eight-hour shlfts. When a vacation relief week results In a 36-hour or 48·hour week, the ll:elit foll&';1iRg relief v,'ei'k week will be selie_a fof kee -eight hetir _ eM foI:lp Beaf _ Sf S'19 eigkt helU' shifts. deiI~ ell: wlietiler 18 Sf Hi heI:1re were Beeeedis Mag the heI:1re hek Ie the 40 helll' lIi',tefage. }2j helll'S .. verked Hi _eSS eftlltl heare fBE!;l:lHee tEl retum Ie lIIe 40 haUl' aYeMge .... 411 he paid at the IIpprep!'iate e'.mmu fate ~ qperator worldng said week shall be paid at on~ and one·half (1 ~) time their nprmal rate ofooy for hours that exceed tblr!;y two (2) hours." SECTION 2. Seope of Modifications. The only modifications of wages, hours or other conditions of employment withln the scope of representation that are modified by thls Resolution are those expressly set forth In Part A of this Resolution. All other terms and conditions within the scope or representation shall remain unchanged unless hereafter modified In accordance with applicable law. Nothing In thls Resolution shall he construed as depriving the Union of its right each year to meet and confer on matters withln the scope af representation, whether or not such matters are included In this Resolution, prior to adoption of the City budgl!! or as otherwise required by law, . _ SECTION 3, If any provision or any part of a provision ofthls Resolution shall be finally determined to be irivalid, illegal, or otherwise .unenii:n:ceable, such . determination shall not impair or otherwise affect the validity, legality. or enforoeability of the remaining provision or parts of the provision thls Resolution, which sbalJ remain in full force and effect as if the W1enforceable provision or part were deleted. III III III III If I fff 091021 >It &'16m! 12 SECTION 4. The Council findB that this is not a project under the California Environmental Quality Act and. ilierefore, no environmental. impact assessment is necessary, AYES: BARTON, BURT. DREKMEIER, KlSHIMOTO, KLEIN, MORTON, SCHMID . NOES; YEH ABSENT: ESPINOSA ABSTENTIONS: ATIEST: APPROVED: Mayor APPROVED AS TO FORM: . otUinlin Resouroes - 0911Xl.2 sit 8261181 13 ,', . Citrof Palo Alto City Manager's JlepQrt TO: HONORABLE CITY COUNCIL FROM: CITY MAI~AGER ~==~~= DATE: OCTOBER 26, lO0:9 DEPAltt:MENT: HUMAN RESOURCES CMR: 414:09 SUBJECT: Adoption ofResolutionlmpusbJ,g the City's Last, Best and Fimd·Offer to Stl'viee Employees' International UDiou (BElU) Local .521 Pnrsuant to Govi!mJllentCo.de Section 35Q5.4 .RECOMMENDA'l10N . Staffreco!lllllenils Council.approval ofthe·attaclWdresDl:ution imposing the City's la!l1;. best apd final offer to Service Employees' Int\:lmational.Union (SElU) Loea1621 pu:rsuant to GQveI'lll11ent Code Section 3:$05 .. 4. The Council is only permUted to approve ot disapprove this resolution and cann~make 1Illy e~ to tenns that were in the City's last, best and final offer. BA<;KGROPND Govemmlm1: CQdQ section.3505,4 authorlms the City:to implement tenus of its last, best and final offtlr. Section 3505.4 provides: . If after meetii)g andconf~g in good faith, au impasse has been.reac:b.ed between. tbepilblic agency and the recognized employee organization, and impasse pl'oce~s, where applieable, have been .ex!:tauste(l. a public agency that 1$ not required, to proceed to interest arbitration :n:tay il:lJplru;nent ~'t$' last,. b.est, and finalofi'er, butshall not implemenuq,nemorandum of understanding. The unilatllral impiementatio.o.of ap1,lbIicagenoy's .l:ast, best, and final affer shall rot depnve .. JiIeCognized employee{)rg!l!lb!ation oftlre rlght.eaeh yearto moot andconferon,matters within the scope of representation, wlletheror not thoS6}natters are included in the unilateral implementation, prior to the adoption by thepubl.ic ,agency of its lI11)lual budget, or .as~~serequire\l bY law. . I • The City's agreeJ.nentwith,SEIDtooal5Z1 ~ired onJune ~O, 2009. TheCity COIllllJI.lIJced negotiations with SElU on May 4, 2009 regarclfug the terms 3lW conditions of emp10yment for this represeniedunit, and the parties have spent five. months and twenty six meetings negotiating fut.ll succeSfjOt agreement in spite of the itlcreasing financial st:taJ.n 011 the City. CMR: 414:0.9 . Pagelof5 Under State law, the City of Palo Alto is required to bargain in good faith and cannot unilaterally make changes to working tenns and conditions for represented employee groups. Thus, although the agreement with SEIU expired, the parties must maintain the status quo and. continue to observe the terms and conditions of the expired agreement until a new ~mmt is neg~glLthe-.City-.may not implement a memorandum of m ---<tgleenrent,lreetion j565~4 grves-tlltvCity !lie abilit,Y16-iJifihiteraJ:ly lhipiementtefllmllmf change the status quo following good faith negotiations and impasse. The prerequisites to unilateral implementation set forth in section 3505.4 have been met Over the course of negotiations, the City has reduced its proposals by nearly half, yet the parties still remain at odds over significant economic issues, as discussed below. As a result of extensive discussions on those issues and fue parties' inability to reach agreement or even make significant progress, the City gave its last, best and final offer to SEW on October 16, 2009. The City and SEIU ineton October 20, 2009, when SEIU formally rejected the City's last, best and final offer. Following the Union's rejection, the City declared that the parties were at impasse. On October 20 and 9ctober22, 2009, pursuant to section 1208 of the City's Merit System Rules and Regulations, the parties discussed potential ways to resolve the dispute in order to Satisfy the impasse procedures, but did not agree. Beyond such discussions, there are no required impasse resolution procedures. Staffis recommending that the council adopt the attached resolution to implement the terms of the City's last, best and final offer descnbed below. This adoption will not and cannot establish a new agreement, but rafuer, will change <lome of the terms and conditions of etnployment under which the parties are currently operating until a new agreement can be reached. Because thiS resolution itnpleinents the terIUS of the City's last, best, and final offer, the Council cannot make any changes to fuose terms ifit adopts the resolution. The Citywill be required to meet and cqnfer wifu the Union prior to adoption of fue FY 2011 budget. PISCUSSION Since the beginning of these negotiations, the City communicated its need for long-term structural budget change in compensation costs, particularly pension and medical costs. Actuarial evidence of the expected increases in PERS retirement contribUtions and in fue· City's retiree medical liability was presented to SEIU during negotiations. in addition, the City's budget deficits ($10 million fur FY 2010) have been communicated to SEIU and furough numerous public meetings, reports, and budget documents. / , The City's and Union's positions are fundamentaUydifferent. They differ over whether the City faces long-term fmancial problems and over their magnitude. The City believes there are long-term systemic cost issues that a change in the economic cycle and an uptick in CMR:414:09 Page2of6 revenues will not address. It faces major liabilities such as the need to eliminate a significant infrastructure backlog and to meet its retirement and retiree medical obligations. It also faces considerable operational expenses as voter approved (General Obligation Bonds) new facilities are brought on-line. 111 addition, the current recession (started in December 2007) has proven long and severe and the general economist consensus is that jobs and consumer spending, the principal economic drlvers of City revenue, will take many lllore years to ~;;;;;;;;';;;;;;;;'=;;:;;;;.F@~. l!l~~i~Q,M_¥I!!~:~is~a~dGii.oo=-t>h~s~~~~¥····-· --~~.~ never return to pre-recession levels. The Union contends that temporary or interim Ineasures such as furlaugbs and savings measures associated with ll,ew employees can close, what it views, as near-term budget deficits. The Union's perspective is that the City's revenue shortfalls will be of short duration and that the economy will resuscitate soon eliminating the need for deeper cost savings. Each side has been consistent in their perspectives. Notwithstanding those differences in perspective, both the City and SEIU have moved on their original proposals. Starting with a proposal for approximately $4.5 million in ongoing savings, the City's last qest and fn18l offer now results in $2.55 million in savings for FY 2010. In its first proposal, the Union requested an increase in compensation and benefits, but has subsequently proposed a series of savings plans that are of a short-term and longer-term nature, such as implementing furlough days, reducing the tuition and training benefit, creating a new and less expensive step in tile compensation plan, and having new employees contribute more toward ili:e employee portion of the PERS retirement plan for a specified number of years. However, the City believes the Union's longer-term proposals do not result in the magnitude of savings required to solve structural issues. In addition, the data used.to support the Union's savings estimates does not instill confidence in the consistency of those savings. The Union has been clear and persistent in rejecting two key features incorporated in the City's proposals as well .as the final offer: (I) contributions by enlployees to medical premium costs (currently employees contribute zero dollars) and (2) establishing a second tier or less remunerative retirement plan (2% at age 60) for new employees. In addition, the Union opposes increasing current employee retirement contributions (currently limited to two percent with the City paying the remainder). This unwavering position led to the City giving . its last, best and final offer, and, after the Union rejected that offer, declaration of impasse. SummaryrofLast, Best and Final Offer • Bath the City and the Union modified their proposals by amount and configuration over the course of the bargaining sessions. The main provisions of the City's last, bestand final offer were a result of continuous changes and tbe give and take in an effort to reach an agreement. CMR: 414:09 P.go 3 of,6 Overall, the City has lowered the amount of concessions it originally proposed and has sought a balance between reductions to employee paychecks (e.g., higher contributions to PERS) and to other non-paycheck benefits (e.g., fewer floating holidays). Staffbelieves that the last, best and fmal offer achieved a fair balance, and the maj or terms it is reconullending .JgriJJl,plemeptationllre!!S follows: _ ---~~ ----puunC-nIDOI" '1ees-~tirenIell t 5ystettF(P'BRS);Bm;mmre<LCtttItJ Ibation---------------.. _. The PERS retirement employee contribution by employees is raised flum the current 2 percent to 8. percent, an increase of 6 percent to employees (the City is currently paying 6 percent of the required 8 percent contribution). This increase will be effective with the pay period including December I, 2W409. The 6 percent increase is a result of the lleed to close the FY 20 I ° budget deficit over the seven remaining months of the f18cal year. TIns is a direct consequence of the dtlration of negotiations. Effective with the pay period including June 30, 20G910, employees would be responsible for paying 5.75 percent of the 8.0 percent of the employee PERS contribution. The 5.75 percent (which is an addition of3.75% to the current 2% employee contribution) is sufficient to meet the City's savings goal and to maintain the same level of savings over twelve months as ill generated by the Jrigher6 percent contribution over an approximate seven-month period in FY 20 I 0. Tuition and Training Reimbursement The final offer reduced the current benefit of $1 ,000 in tuition and training rcimbursenlent to zero. The Union indicated during negotiations that it was amenable to reducing this benefit although the parties were onable to reach fmal agreement on the amount. Furloughs The last, best and final offer contained no pre-set, unpaid furlough days. This furlough provision may be triggered if an employee applied for and received the tuition and training reimburaemeut prior to the implementation of the tuition and training reimbursement reduction. The furlough would be made sufficient to cover the amoont that has been paid to _ the employee. To date, staff has no knowledge of an SElU employee using the tuition benefit, so it is likely that the furlough provision will not affect any employees. Floating Holidays This provision eliminates two of five floating holidays SHIU employees currently recelve per year. It is believed that this will result in an increase in productivity and savings to the City by a decrease in overtime. A value of $170,000 was ascribed to each floating holiday. Health Insurance The City significantly modified its proposals on employee contributions to medical premiUl1lS over the course of negotiations. Whereas in a prior proposal, the employee share would rise overthne to a larger share of premium costs, the City's last, best and final offer was for ClIijR: 414:09 Page 4 of6 employees to share in the future health care cost increases equally until such time as the employee pays a maximum of 10 percent of the total premium for the applicable plmi The City would paytheremaining 90 percentlevel. This 90/10 split of premiums would continue into the future. The City believes this is a reasonable way to offer some assurance to employees on cost increases while also providing financial relief to the City. j :;;:_==:;;;:,:;, .. ':: .. ~::---~2..~B~em~, e~.Iil.~t;i!jat~-S~~ii4t.~{:~R.~.etiialmjj!'iCll~t-~ll[jla!!lIl~--=-=--=======~=~~ =========== To control future retirement costs, the City's last, best and fmal offer gave a different retirement formula, 2% of final salary at age sixty, for future new employees. Current MiscellaneoUll employees will maintain the 2.7 percent at 55 retirement benefit. The formula change for new employees would have modest financial impact in the early years of implementation but would result in'much lower costs over time. The City believes the terms of its last, best and final offer to SEIU are reasonable given current economic conditions and the long-term and real financial challenges the City faces. , Staff regrets that a negotiated deal could not be reached at this time, but the press of events and the need fer fiscal responsibilityne~essitates implementation of these last, best and final offer terms. RESOURCE IMPACT . Based on the City's last, best and final offer descnbed above, the City's estimated savings during FY 2010 are as follows: Incremental Six (6) Percent Contribution ,to PERS for Remainder of Fiscal Year: Eliminstion of Tuition arid'Training Benefit Elimination of Two (2) floating Holidays Total Savings for FY 2010 , $1,599,500 607,500 340,000 $2,547,000 The "hard" savings in the above is closer to $2.2 million, a marked decrease from the City's' October 6, 2009 proposal, and less thanhalf of what the City sought when negotiations began in May. While the hard savings can be realized this year, the changes to Ii two-tier retirement fonnula al!d contributions to healthcare insurance premiums will have future benefits that will assist 'in addressing the structural deficit the City is facing. POLICY IMPLICATIONS CMR:414:09 Page 5 of6 POllCY IMPLICATIONS This recommendation is consistent with existing City policies . . _""-----,.-< .~. . ... -_. _ ••••• ~ •• ENVIRONMENTAL REVIEW Adoption of this resolution is not considered a project under the California Environmental Quality and does not require an environmental revieW. ATTACHMENTS A. RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO lMPOSlNG THE CITY'S LAST, BEST, AND FINAL OFFER TO SEru LOCAL 521 PURSUANT TO GOVERNMENT CODE· SECTION 3505.4 . PREPARED BY: Sandra.T.R.Blanch, Assistant Director, Human Resources and, Joe Saccio, Deputy Director of Adminjstrative Services DEPARTMENT HEAD: _----='0~<,::l<;:n:::::.i· ;:.:::O=:~ ;=:.:-__ • _/ -=._=-__ _ RUSSC~EN . Director of Human Resources CITYMANAGIlRAPPROvAL d~ A. 4"AMES . V . City Manager . CMR:414:09 Page ~ of6