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HomeMy WebLinkAboutStaff Report 9583 City of Palo Alto (ID # 9583) City Council Staff Report Report Type: Consent Calendar Meeting Date: 10/1/2018 City of Palo Alto Page 1 Summary Title: Adoption of MOA for PMA, IAFF, and FCA Title: Adoption of a new Memorandum of Agreement With the Palo Alto Police Management Association (PAPMA), International Association of Fire Fighters (IAFF), Local 1319, and Palo Alto Fire Chiefs' Association (PAFCA); and Approval of a Budget Amendment in the General Fund From: City Manager Lead Department: Human Resources Recommendation Staff recommends that the City Council 1) Adopt new Memoranda of Agreement (MOA) for the Palo Alto Police Management Association (PAPMA), International Association of Fire Fighters Local 1319 (IAFF), and Palo Alto Fire Chiefs Association (PAFCA); and 2) Amend the Fiscal Year 2019 Budget Appropriation Ordinance for the General Fund by: a. Increasing the expense appropriation in the Fire Department by $685,000 and; b. Decreasing the Budget Stabilization Reserve by $685,000. Overview As a local public agency, the City of Palo Alto is required under California State law to meet and confer in good faith with its recognized labor organizations to reach agreements regarding wages, hours and other terms and conditions of employment1. The teams of negotiators, including City representatives comprised of Human Resources staff and management representatives, met with labor representatives in good faith and successfully reached tentative agreements. 1 The Meyers-Milias Brown Act (MMBA), adopted in 1968 as Government Code 3500, establishes the legal framework under which the public agency and labor organizations are required to meet and confer in good faith. As defined in the MMBA, the Memoranda of Agreement is a legally binding contract between the parties. City of Palo Alto Page 2 A summary of the full terms are attached to this memo, as well as the proposed Memoranda of Agreement. The three labor organizations that reached tentative agreements with the City are:  International Association of Fire Fighters Local 1319, which is comprised of 88 Full Time Exempt employees (FTE’s) from Firefighter Paramedics to Fire Captains  Fire Chiefs Association is comprised of 4 FTE’s exclusively representing Battalion Chiefs  Police Management Association is comprised of 7 FTE’s and represents Lieutenants and Captains Background Each of the three labor agreements had contract expirations effective June 30, 2018 and all three new agreements have expiration dates of June 30, 2021. The parties did not reach mutual agreement prior to the expiration, however continued to negotiate through the summer months with urgency and resolve until agreements were reached. At direction of Council and City leadership, the Human Resources department offered alternative bargaining methods2 to these units, which should be credited with much of the success and timely closure of these negotiations. The new terms of these tentative agreements are intended to (1) allow the City to be successful in retaining current Public Safety personnel, (2) remain competitive in this challenging market, and (3) recognize the value of retiree health in the total compensation package offered to each employee group. The terms in each agreement being brought to Council include:  Pension Contributions: In addition to employees paying their full member contribution toward pension costs3, the City continued down the path of increased Employee cost sharing. Employees in these units will be paying an additional 1% of their salary towards the Employer’s pension costs for a total of 4% contributions toward the Employer’s pension costs. In total with the employee’s 9% member contribution, this means that Classic CalPERS members will be paying 13% of the annual salary towards CalPERS pension costs.  Capped Medical Costs: The City is further limiting its risk to taking on uncontrolled medical cost increases by limiting the increases to our flat rate medical contributions. The City will increase the medical contribution by 4% effective January 1, 2019 but will hold it at this level through the life of the contract.  Operational issues: In addition to economic proposals, a number of operational issues, such as shift schedules, training practices, alternate service delivery models and in range 2 Through Council approval City staff offered all bargaining units the option of negotiating without outside legal counsel being present at the table, IAFF, FCA, and PMA all opted to utilize this method. 3 This varies based on CalPERS status between Pepra and classic Safety members City of Palo Alto Page 3 salary movement were discussed and resolved4 as a part of these negotiations. Many of these issues are a part of long term strategic City and Council priorities which will span multiple contract cycles. With this in mind, the parties agreed to leave certain contract sections5 open for additional discussion and refinement. Summary of Salary Adjustments included in agreements (1) Palo Alto Police Management Association (PAPMA) Term: Expires June 30, 2021 General Salary Adjustment for Lieutenants: 4% Effective first full pay period following adoption, 4% Effective first full pay period following July 1, 2019, 4% Effective first full pay period following July 1, 2020 General Salary Adjustment for Captains: 1% Effective first full pay period following adoption, 4% Effective first full pay period following July 1, 2019, 4% Effective first full pay period following July 1, 2020 (2) International Association of Fire Fighter Local 1319 (IAFF) Term: Expires June 30, 2021 General Salary Adjustment: 3% Effective first full pay period following adoption, 3% Effective first full pay period following July 1, 2019, 3% Effective first full pay period following July 1, 2020 Market Adjustment: 2.5% Effective first full pay period following adoption Other Economics: Bilingual Differential, Paramedic Training Stipend, City Contribution to Deferred Compensation6 (3) Palo Alto Fire Chiefs Association (PAFCA) Term: Expires June 30, 2021 General Salary Adjustment: 3% Effective first full pay period following adoption, 3% Effective first full pay period following July 1, 2019, 3% Effective first full pay period following July 1, 2020 Market Adjustment: 2.5% Effective first full pay period following adoption Summary of Medical Benefit Changes Medical Premium PEMHCA Total Maximum Total Maximum City 4 Examples include items such as updating of 2 Fire Department policies related to weekend assignments and training 5 Examples of sections left open include but not limited to: Strike team relief, Alternate staffing models 6 Each of these economic factors is covered in detail in the summary of terms attachment City of Palo Alto Page 4 Category Contribution* City Contribution (inclusive of PEMHCA contribution) effective from time of ratification through December 31, 2018 Contribution (inclusive of PEMHCA contribution) effective January 1, 2019 Employee Only $133.00 $804 $840 Employee plus one $133.00 $1606 $1680 Employee Family $133.00 $2088 $2180 Resource Impact The total costs over the three-year term of the contracts would be $6.6 million in the General Fund. The FY 2019 Budget and the FY 2019 – FY 2028 General Fund Long Range Financial Report modeled a 2.0% annual general wage increase as well as a 4.0% increase in annual medical costs and projected increases in pension costs. Once adjusted for these costs already presumed in the financial modeling, it is anticipated these contracts would result in additional costs of approximately $892,000 in the General Fund in FY 2019, $1.2 million in FY 2020, and $1.4 million in FY 2021, totaling $3.5 million in costs above previous budget forecasts. However, since the FY 2019 impact begins in October instead of July, the FY 2019 costs are lessened somewhat, resulting in the necessary FY 2019 budget amendment of $685,000 in the Fire Department and total costs over the term of the contracts of $3.3 million. The tables below detail the costs by unit for the three contracts. These costs will be factored into both the development of the FY 2020 – FY 2029 Long Range Financial Forecast and the FY 2020 Operating Budget. Table 1. Marginal Costs of IAFF MOA ($000s) FY 2019 FY 2020 FY 2021 Total Budget/LRFF $25,833 $26,998 $28,042 $80,873 Marginal Costs of Contract* $650 1,105 $1,261 $3,016 * Estimates for Marginal Costs assume that new terms begin in October 2018. Table 2. Marginal Costs of FCA MOA ($000s) FY 2019 FY 2020 FY 2021 Total Budget/LRFF $1,394 $1,459 $1,519 $4,372 Marginal Costs of Contract* $35 $62 $68 $165 * Estimates for Marginal Costs assume that new terms begin in October 2018. Table 3. Marginal Costs of PAPMA MOA ($000s) City of Palo Alto Page 5 FY 2019 FY 2020 FY 2021 Total Budget/LRFF $2,657 $2,788 $2,908 $8,353 Marginal Costs of Contract* $(17) $29 $68 $81 * Estimates for Marginal Costs assume that new terms begin in October 2018. Although nominal savings are projected in FY 2019 with the agreement with Palo Alto Police Management Association unit, no budgetary adjustment is recommended in FY 2019. The graph below shows the full impacts for the safety bargaining units new contracts including Palo Alto Peace Officers Association (PAPOA). PAPOA’s MOA was approved on June 25, 2018 as part of CMR# 9320. Table 4. Marginal Cost of All Safety MOAs over Budgetary Assumptions (including PAPOA) Policy Implications This contract is consistent with the City’s Guiding Labor Principles adopted by Council on April 9, 2012. Environmental Review Adoption of a MOA affecting the wages, hours and working conditions of City employees is not a project under the California Environmental Quality Act (CEQA). Attachments:  Summary of Terms  Redline PAPMA MOA 2018-2021 (PDF) City of Palo Alto Page 6  Clean PAPMA MOA 2018-2021 (PDF)  Redline IAFF MOA 2018-2021 (PDF)  Clean IAFF MOA 2018-2021 (PDF)  Redline FCA MOA 2018-2021 (PDF)  Clean FCA MOA 2018-2021 (PDF) Attachments:  Summary of Terms  IAFF 18-21 MOA clean Final unsigned  IAFF 18-21 MOA redline final unsigned  FCA 18-21 MOA clean FINAL unsigned  FCA 18-21 MOA redline FINAL unsigned  PMA MOA 18-21 clean final unsigned  PMA MOA 18-21 Redline final unsigned Summary of Terms for Council October 1, 2018 (IAFF, FCA, PMA) International Association of Fire Fighters Local 1319 Article/Section Change Article III Agency Shop Updated to reflect needed legal changes based on Supreme Court Ruling. Article VI- Probationary Period Revised to be 14 months of service from a Firefighter’s graduation from the Academy, excluding any extended leaves, ie. Medical or military. Article VII- Salary Provisions Base Salary increase 3% per year. Market increase of 2.5% effective first full pay period following adoption Article VII- Pay Differentials (1) Revised section in order to address operational issue regarding acting captains receiving both acting pay and paramedic pay while assigned as a captain. (2) New bilingual pay premium, for Fire employees who certify their ability to fluently interact with members of our community in several key languages. A differential of 5% will be paid to these employees as long as they maintain their certification. Article XX- Health Benefits Aligning all public safety units to one flat rate medical. City will contribute the following amounts for the term of the MOA: Employee- $840 Employee plus one- $1680 Employee Family- $2180 Article XI- Apparatus staffing More flexibility in classification that can be assigned to truck companies. Article XXIII- Retirement Benefits (1) Effective first full pay period following July 1, 2020 employees will contribute an additional 1% to the employer PERS contributions for a total of 4% (2) Effective the first full pay period following July 1, 2020 the employer will contribute Summary of Terms for Council October 1, 2018 (IAFF, FCA, PMA) 1% of pensionable income to employees 457 plans. Article XV- Paramedic Assignment Field training stipend- Employees who are assigned to provide in the field training for new paramedics shall receive a one-time $300 stipend upon successful training of the new paramedic. Article XVI- Fire Fighter Apprentice Program Removed from MOA. Article XXXVII- House Fund Eliminate delivery of newspapers to each station and increase house fund to $100 per year, per employee. Article XXXIX- Grievances Grievances may be filed over department procedures, policies, and rules. Article XLII- 48/96 work schedule This shall be the regular schedule for the department. Article XLIV- Future Service Delivery Models During the term of this agreement at the City’s request, the parties will meet and confer in good faith over alternate service delivery models related to transport and/or inspection services. Article XLV- Duration Adoption by council through June 30, 2021. Fire Department Policy 205.6 Updated to reflect 48/96 schedule and allows for weekend trainings. Fire Department Policy 1009.8.1 Reporting for duty updated based on 48/96 schedule. Appendix B- Letter of intent The parties during the term of this agreement will continue to discuss the implementation of a strike team relief program for Fire fighter returning from emergency deployments. Summary of Terms for Council October 1, 2018 (IAFF, FCA, PMA) International Association of Fire Fighters Local 1319 Palo Alto Fire Chiefs Association Article/Section Change Article III Agency Shop Updated to reflect needed legal changes based on Supreme Court Ruling. Article V- Salary Provisions Base Salary increase 3% per year. Market increase of 2.5% effective first full pay period following adoption Article VIII- Vacation Cash Out Entire allocation must be taken at one time, once per calendar year. Article XVI- Health Benefits Aligning all public safety units to one flat rate medical. City will contribute the following amounts for the term of the MOA: Employee- $840 Employee plus one- $1680 Employee Family- $2180 Article XXIII- Retirement Benefits (3) Effective first full pay period following July 1, 2020 employees will contribute an additional 1% to the employer PERS contributions for a total of 4% (4) Effective the first full pay period following July 1, 2020 the employer will contribute 1% of pensionable income to employees 457 plans. Article XXIV- House Fund Eliminate delivery of newspapers to each station and increase house fund to $100 per year, per employee. Article XVII- Duration Adoption by council through June 30, 2021. Article XXVIII- 48/96 work schedule This shall be the regular schedule for the department. Summary of Terms for Council October 1, 2018 (IAFF, FCA, PMA) Palo Alto Police Manager’s Association Article/Section Change Section 3. Salary Lieutenants: 4% salary increase per year Captains: 1% first full pay period following adoption, 4% each subsequent year Section 4. Working Out of Class Bring in to accordance with government code 20480. Section 6. Health Plans Aligning all public safety units to one flat rate medical. City will contribute the following amounts for the term of the MOA: Employee- $840 Employee plus one- $1680 Employee Family- $2180 Section 19. Retirement Benefits Effective the first full pay period following June 30, 2021, all unit members shall contribute an additional 1% to the Employer Pension rate for a total of 4% contribution to Employer pension rate. (Total Employee contribution will be 13% for Classic; 50% of Normal Rate plus 4% for PEPRA.) Section 21. ICMA – Retirement Health Savings Plan Eliminate 2. Each member within 5 years of minimum retirement age 50 shall contribute an additional 1% toward base salary bi- weekly Eliminate 3. Upon retirement from the city, each member shall contribute the then cash value of 100 hours of vacation into the plan Section 50. Duration 3 years, expiring June 30, 2021 1 MEMORANDUM OF AGREEMENT Between CITY OF PAL0 ALTO and I.A.F.F. LOCAL 1319 October 1, 2018 – June 30, 2021 2 PREAMBLE __________________________________________________________ 7 ARTICLE I - RECOGNITION _____________________________________________ 7 Section 1. Recognition. ______________________________________________________ 7 ARTICLE II - NO DISCRIMINATION _______________________________________ 7 Section 1. No Discrimination. __________________________________________________ 7 Section 2. Free Choice. ______________________________________________________ 7 Section 3. Human Relations Committee. _________________________________________ 7 ARTICLE III - PAYROLL DEDUCTIONS ____________________________________ 7 Section 1. Payroll Deductions and Written Authorization. ____________________________ 8 Section 2. Certification of Union Membership _____________________________________ 8 Section 3. Indemnification ____________________________________________________ 8 ARTICLE IV - UNION ACTIVITIES ________________________________________ 8 Section 1. On-Duty Time. _____________________________________________________ 8 Section 2. Interoffice Mail, Bulletin Boards, and E-Mail. ______________________________ 8 Section 3. Use of Meeting Places. ______________________________________________ 9 ARTICLE V - NO STRIKES ______________________________________________ 9 Section 1. No Strikes. ________________________________________________________ 9 ARTICLE VI - PROBATIONARY PERIOD __________________________________ 9 Section 2. Part of Testing Process. _____________________________________________ 9 Section 3. Suspension or Termination. __________________________________________ 9 ARTICLE VII - SALARY PROVISIONS ____________________________________ 10 Section 1. Base Wage Rates. ________________________________________________ 10 Section 2. Out-of-Class Compensation. _________________________________________ 10 Section 3. Pay for Court Appearance. __________________________________________ 11 Section 4. Classifications ____________________________________________________ 11 ARTICLE VIII - PAY DIFFERENTIALS ____________________________________ 12 Section 1. Paramedic Differential. _____________________________________________ 12 Section 2. Haz Mat Differential. _______________________________________________ 12 Section 3. Fire Inspector Differential. __________________________________________ 12 Section 4. EMT Differential. __________________________________________________ 12 Section 5. Bilingual Pay _____________________________________________________ 12 ARTICLE IX - HOLIDAYS ______________________________________________ 13 Section 1. Named Holidays. __________________________________________________ 13 Section 2. Conditions. ______________________________________________________ 14 ARTICLE X - OVERTIME COMPENSATION _______________________________ 14 Section 1. Compensation. ___________________________________________________ 14 3 ARTICLE XI - APPARATUS STAFFING ___________________________________ 14 ARTICLE XII - FIRE DEPARTMENT PROGRAMS ___________________________ 15 Section 1. Programs. _______________________________________________________ 15 ARTICLE XIII - WORK ASSIGNMENTS AND TRANSFERS ___________________ 15 Section 1. Shipouts. _______________________________________________________ 15 Section 2. Vacation Relief Positions. ___________________________________________ 16 Section 3. Transfer Requests. ________________________________________________ 16 Section 4. Special Assignments. ______________________________________________ 16 Section 5. Continuous Hourly Service. __________________________________________ 16 ARTICLE XIV - TRAINING COORDINATION _______________________________ 17 Section 1.Coordination ______________________________________________________ 17 ARTICLE XV - PARAMEDIC ASSIGNMENT _______________________________ 17 Section 1. Limit of Eligibility. __________________________________________________ 17 Section 2. Additional Candidate Training. _______________________________________ 17 Section 3. Incentives. _______________________________________________________ 17 Section 4. Proctoring. _______________________________________________________ 17 Section 5. Field Training Stipend. _____________________________________________ 17 ARTICLE XVI - PROMOTION ___________________________________________ 18 Section 1. Promotion Step Level. ______________________________________________ 18 Section 2. Promotion Process Information. ______________________________________ 18 ARTICLE XVII - REDUCTION IN FORCE __________________________________ 18 Section 1. Order of Reduction. ________________________________________________ 18 ARTICLE XVIII - SELECTIVE CALL BACK WITH REGARD TO RESIDENCY _____ 18 Section 1. In Case of Emergency ______________________________________________ 18 ARTICLE XIX - HEALTH BENEFITS ______________________________________ 18 Section 1. Maintenance of Levels _____________________________________________ 18 Section 2. Vision Care. ______________________________________________________ 18 Section 3. PEMHCA Health Plan. _____________________________________________ 19 ARTICLE XX - DENTAL BENEFITS ______________________________________ 21 Section 1. Level of Benefits. __________________________________________________ 21 Section 2. Premiums. _______________________________________________________ 21 ARTICLE XXI - LIFE INSURANCE _______________________________________ 21 Section 1. Premiums. _______________________________________________________ 21 ARTICLE XXII - RETIREMENT BENEFITS _________________________________ 21 Section 1. PERS Retirement Formula. __________________________________________ 21 Section 2. PERS Member Contribution. ________________________________________ 22 4 Section 3. Additional Employee PERS contributions _______________________________ 22 Section 4. Option 2 Death Benefit. _____________________________________________ 23 Section 5. Military Service Credit. _____________________________________________ 23 Section 6. 1959 Survivor Benefit. _____________________________________________ 23 Section 7. Employer Contributions to 457 Plan ___________________________________ 23 ARTICLE XXIII - RETIREMENT MEDICAL PLAN ___________________________ 23 Section 1. Retiree medical coverage for Unit employees hired before January 1, 2004: ____ 23 Section 2. 20-Year Vesting for Retiree Medical Coverage for Unit Employees Hired On Or After January 1, 2004: ____________________________________________________ 24 ARTICLE XXIV - DEPENDENT CARE ASSISTANCE PROGRAM (DCAP) ________ 24 Section 1. DCAP. __________________________________________________________ 24 ARTICLE XXV - VACATION ACCRUAL ___________________________________ 24 Section 1. Accrual Rate. _____________________________________________________ 24 Section 2. Unused At Termination. _____________________________________________ 24 Section 3. Limits. __________________________________________________________ 25 ARTICLE XXVI - USE OF VACATION ____________________________________ 25 Section 1. Maximum Number of Slots __________________________________________ 25 Section 2. Approvals. _______________________________________________________ 25 Section 3. Vacation Pay. ____________________________________________________ 25 Section 4. Illness on Vacation. ________________________________________________ 25 Section 5. When to be Taken. ________________________________________________ 25 Section 6. Limitation on Use. _________________________________________________ 25 Section 7. Waiting Period. ___________________________________________________ 25 Section 8. Double Compensation Prohibited. _____________________________________ 25 Section 9. Cash out Option. __________________________________________________ 26 ARTICLE XXVII - SICK LEAVE __________________________________________ 26 Section 1. Statement of Policy. _______________________________________________ 26 Section 2. Eligibility ________________________________________________________ 26 Section 3. Accrual. _________________________________________________________ 26 Section 4. Accumulation. ____________________________________________________ 26 Section 5. Use. ____________________________________________________________ 26 Section 6. Depletion of Sick Leave Benefits. _____________________________________ 27 Section 7. Forfeiture Upon Termination. ________________________________________ 27 Section 8. Payment for Accumulated Sick Leave. _________________________________ 27 Section 9. Personal Business Leave Chargeable to Sick Leave. ______________________ 27 Section 10. Return to Work or Continue Work With Limited Duty. _____________________ 27 5 ARTICLE XXVIII - SUBPOENAS _________________________________________ 28 ARTICLE XXIX - WORKERS' COMPENSATION ____________________________ 28 Section 1. Status Reporting While on Disability. __________________________________ 28 ARTICLE XXX - PHYSICAL FITNESS MEDICAL EXAMINATIONS ______________ 28 ARTICLE XXXI- LEAVES OF ABSENCE WITHOUT PAY _____________________ 28 Section 1. Disability. ________________________________________________________ 28 Section 2. Other Leaves. ____________________________________________________ 28 Section 3. Accrued Vacation Credits. ___________________________________________ 28 Section 4. Approval of Department Head ________________________________________ 29 Section 5. Approval by City Manager. __________________________________________ 29 Section 6. Absence Without Leave. ____________________________________________ 29 Section 7. Leave of Absence; Death Outside the Immediate Family. __________________ 29 Section 8. Military Leave of Absence ___________________________________________ 29 Section 9. Use of paid accruals while on leave. ___________________________________ 29 ARTICLE XXXII - LEAVES OF ABSENCE WITH PAY ________________________ 29 Section 1. City Manager Granted Leaves. _______________________________________ 29 Section 2. Council Granted Leave. _____________________________________________ 29 Section 3. Employee's Time Off to Vote. ________________________________________ 29 Section 4. Leaves of Absence; Death in Immediate Family. _________________________ 29 Section 5. Jury Duty; Leave of Absence. ________________________________________ 30 ARTICLE XXXIII – VOLUNTEER LEAVE PROGRAM ________________________ 30 ARTICLE XXXIV- TUITION REIMBURSEMENT _____________________________ 31 Section 1. Options. _________________________________________________________ 31 ARTICLE XXXV - PER DIEM TRAVEL EXPENSES __________________________ 32 Section 1. City Business. ____________________________________________________ 32 ARTICLE XXXVI - HOUSE FUND ITEMS __________________________________ 32 Section 1. Station House Fund. _______________________________________________ 32 Section 2. Non-Food House Items _____________________________________________ 32 ARTICLE XXXVII - PARKING ___________________________________________ 32 Section 1. Entitlements. _____________________________________________________ 32 ARTICLE XXXVIII- GRIEVANCES _______________________________________ 32 Step II ___________________________________________________________________ 33 Step III __________________________________________________________________ 33 Step IV __________________________________________________________________ 33 ARTICLE XXXIX- SAFETY COMMITTEE __________________________________ 35 Section 1. Committee _______________________________________________________ 35 6 ARTICLE XL – MISCELLANEOUS _______________________________________ 35 Section 1. T-Shirts. _________________________________________________________ 35 Section 2. Removal of Disciplinary Actions. ______________________________________ 35 ARTICLE XLI - FULL UNDERSTANDING _________________________________ 35 Section 1. Full and Entire Understanding ________________________________________ 35 Section 2. Fair Labor Standards Act. ___________________________________________ 35 Section 3. Severability. ______________________________________________________ 35 Section 4. Good Faith. ______________________________________________________ 35 Section 5. Merit System Rules and Regulations. __________________________________ 35 Section 6. Station Consolidation or Relocation ___________________________________ 36 Section 7. Meet and Confer. __________________________________________________ 36 ARTICLE XLII – 48/96 Work Schedule ___________________________________ 36 ARTICLE XLIII – FUTURE SERVICE DELIVERY MODELS ____________________ 36 ARTICLE XLIV - DURATION ____________________________________________ 36 APPENDIX A ________________________________________________________ 39 APPENDIX B ________________________________________________________ 48 7 MEMORANDUM OF AGREEMENT CITY OF PAL0 ALTO and I.A.F.F. LOCAL 1319 October 1, 2018 - June 30, 2021 PREAMBLE This Memorandum of Agreement between the City of Palo Alto, hereinafter referred to as the "City", and Local 1319, International Association of Fire Fighters, hereinafter referred as the "Union", has been prepared and entered into in accordance with Title I, Division 4, Chapter 10, Sections 3500-3510 of the California Government Code and Chapter 12 of the City of Palo Alto Merit System Rules and Regulations. ARTICLE I - RECOGNITION Section 1. Recognition. The City recognizes the Union as the exclusive representative of an employee group consisting solely of the classifications of Fire Apparatus Operator, Fire Fighter, Fire Captain, Fire Captain (forty-hour assignment), Fire Inspector, Hazardous Materials Specialist, and Hazmat Inspector, who are regularly employed by the City and others as amended into the representation unit from time to time under existing law and the Merit System Rules and Regulations. ARTICLE II - NO DISCRIMINATION Section 1. No Discrimination. The Union and the City hereby agree that there shall be no discrimination because of race, color, age, disability, sex, national origin, sexual orientation, political or religious affiliation under this Agreement. There shall be no discrimination in employment conditions or treatment of employees on the basis of membership or non-membership in the Union, or participation in the lawful activities of the Union. Section 2. Free Choice. The Union and the City hereby 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. Section 3. Human Relations Committee. A Human Relations Committee will include up to five members appointed by the Union executive board and at least two members of management with representation from the Fire and Human Resources Departments. The committee may make recommendations to management regarding recruitment outreach, equal employment opportunity and career development programs. ARTICLE III - PAYROLL DEDUCTIONS 8 Section 1. Payroll Deductions and Written Authorization. The City shall deduct Union membership dues assessments and insurances authorized by the Union. This will be accomplished by payroll deduction from the bi-weekly pay of member employees. The dues deduction must be authorized in writing by the employee on a Union authorization card. The Union will be the custodian of records for individual employee membership and dues deduction forms. The Union will maintain authorizations for dues deduction, signed by the individual from whose salary or wages the deduction or reduction is to be made. The City will direct employee requests to cancel or change deductions to the Union. The City shall remit the deducted dues to the Union as soon as possible after deduction. Section 2. Certification of Union Membership. The Union agrees to provide the City an initial certified list of members and statement that the Union has and will maintain written authorizations signed by the individuals from whose wages the Union dues deductions are to be made. From that point forward the Union will update the list whenever there are changes. Section 3. Indemnification. The Union shall indemnify and hold the City harmless against any liability arising from any claims, demands, or other action relating to this article. The Union shall comply with all statutory and legal requirements with respect to this article. ARTICLE IV - UNION ACTIVITIES Section 1. On-Duty Time. Local 1319 officers may use a reasonable amount of on- duty time to attend to Union business specifically related to representation of employees so long as: a. Staffing is available b. Operations are not interrupted c. Advance approval is obtained from the Battalion Chief or Operations Chief Section 2. Interoffice Mail, Bulletin Boards, and E-Mail. The Union shall have access to interoffice mail and existing bulletin boards in unit employee work areas for the purpose of posting, transmitting, or distributing notice or announcements including notices of social events, recreational events, Union membership meetings, result of elections and reports of minutes of Union meetings. Any other material must have prior approval of the Operations Chief or Fire Chief. Action on approval will be taken within 24 hours of submission. The Union may send e-mail messages only for the purposes set forth above. The I.T. Division will maintain the IAFF list. The Union access to e-mail is based on the following conditions: 9 a. E-Mails to the IAFF list will be copied to the Fire Chief or Operations Chief at distribution. b. E-Mails to the IAFF list will only be sent by the Executive Board Members. Section 3. Use of Meeting Places. The Union shall have the right to reserve City meeting and conference rooms for use during non-working hours or as subject to Battalion Chief approval. Such meeting places will be made available in conformity with City regulations and subject to the limitations of prior commitment. ARTICLE V - NO STRIKES Section 1. No Strikes. The Union, its representatives, or members, shall not engage in or cause, instigate, encourage, sanction, or condone a strike, withholding of services, leave of absence abuse, work stoppage or work slowdown of any kind against the City of Palo Alto or its citizens by employees covered under this Agreement. No employee shall refuse to cross any picket line in the conduct of Fire Department business, nor shall the Union, its representatives or members discriminate in any way toward anyone who refuses to participate in a strike, or any of the job actions cited above. ARTICLE VI - PROBATIONARY PERIOD Section 1. Tentative and Subject to Probationary Period. All original appointments to regular or part-time municipal service positions shall be tentative and subject to a probationary period. This probationary period shall include the fire training academy and an additional fourteen (14) months after completion of the academy, excluding time off for extended leaves of absence. Section 2. Part of Testing Process. The probationary period shall be regarded as part of the testing process and shall be utilized for closely observing all aspects of the employee's qualifications, for ensuring the effective adjustment of a new employee to the position and for rejecting any probationary employee who, in the opinion of management, is not suitable to attain permanent status. Section 3. Suspension or Termination. During the probationary period a new employee may be suspended or terminated at any time by the appointing authority without cause and without right of appeal or to submit a grievance. Said employee shall not have the right to proceed to arbitration on the issue of arbitrability or on the issue of its constitutional or discovery rights, nor those of any employee by reason of the foregoing. The Union shall not be a party to any lawsuit relating to the termination of a probationary employee. 10 ARTICLE VII - SALARY PROVISIONS Section 1. Base Wage Rates. a. The base wage rates of bargaining unit classifications will be as set forth in Appendix A of this MOA. b. Base Salary: Effective the first full pay period following Council adoption, a three percent (3%) salary increase will be applied to the salary ranges for all represented classes. c. Market Increase: Effective the first full pay period following Council adoption, a two and a half percent (2.5%) salary increase will be applied to the salary ranges for all represented classes. d. Base Salary: Effective the first full pay period following July 1, 2019, a three percent (3%) salary increase will be applied to the salary ranges for all represented classes. e. Base Salary: Effective the first full pay period following July 1, 2020, a three percent (3%) salary increase will be applied to the salary ranges for all represented classes. Total Compensation and Survey Database Management and the Union have agreed to a compensation survey database structure. Survey Cities include: Alameda, Berkeley, Fremont, Hayward, Menlo Park Fire District, Milpitas, Mountain View, Redwood City, Pleasanton, San Jose, San Mateo, San Ramon Fire District, Santa Clara, Santa Clara County and South San Francisco. Compensation Criteria includes: top step salary, maximum longevity, maximum education, uniform allowance, EMT differential, Hazmat differential, deferred compensation, employee pick up of employer pension costs (Negative EPMC), and maximum City paid benefits (medical, dental, vision, life insurance, LTD, and EAP). 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. Section 2. Out-of-Class Compensation. All represented employees who are assigned work in a higher classification for longer than four (4) continuous hours will be compensated at a higher pay rate for all hours worked during the out-of-class assignment. This provision applies as follows: Fire Fighter, Apparatus Operator, Captain or Inspector working in a higher classification: Step to step. Representation unit classification working as a Battalion Chief, 10% above 5th-Step Captain, but not to exceed 93% of Battalion Chief control point. Representation unit classification working in any other management position, within the range of the management position. 11 In accordance with Government Code 20480, an employee assigned to work in an “out-of-class appointment” may not exceed 960 hours worked in the appointment within a fiscal year if the employee is appointed to an upgraded position or higher classification that is vacant during recruitment for a permanent appointment. This limitation does not apply to a position that is temporarily available due to a leave of absence. Section 3. Pay for Court Appearance. Sworn Fire personnel appearing in court for the People shall be compensated as follows: Period Rate Minimum a. Appearance on scheduled day off Time and one-half at 40-hour rate 4 hours b. Any or all court time during scheduled shift Straight time during shift at 56-hour rate None c. Appearance on scheduled Time and one-half at 2 hours work day but not during scheduled shift 40-hour rate (2 hour minimum, may not run into shift time) The employee shall remit all fees received for such appearances to the City within thirty days from the termination of his/her services. Compensation for mileage or subsistence allowance shall not be considered as a fee and shall be retained by the employee. Section 4. Classifications. The Haz Mat Inspector position will be paid at the same level as the Fire Inspector (603). One Fire Captain position will be assigned to a Fire Captain (Forty-hour Assignment) with the pay set at 5% above the Fire Captain. 12 ARTICLE VIII - PAY DIFFERENTIALS Unit employees are eligible for the following pay differentials. Notwithstanding any provision of this agreement, total differential pay shall not exceed seventeen and a half percent (17.5%). Section 1. Paramedic Differential. Paramedics who have completed the required training and have been accredited in accordance with the program and possess their paramedic license, will receive a 12.5% differential in addition to their base salary effective beginning with the date of assignment to rotational Paramedic duty. The Paramedic salary differential will terminate with the cessation of assignment to rotational Paramedic duty. Employees assigned to work as an Acting Captain, as described in Article VII, Section 2 above, shall not be eligible to receive the paramedic differential unless the Acting Captain is the only paramedic staffing the apparatus during their Acting Captain assignment. Section 2. Haz Mat Differential. A maximum of fifteen positions who are Haz Mat trained and certified will receive a 5% differential in addition to their base salary. This differential does not apply to minimum staffing replacements. Section 3. Fire Inspector Differential. Fire inspector personnel including Haz Mat inspectors and Haz Mat specialists who have been trained as fire investigators and who are regularly assigned to fire investigation duties by the Chief shall be compensated with premium pay in the amount of $500 per month. The Chief reserves the right to determine who is regularly assigned to such duties. Section 4. EMT Differential. The former 3% EMT differential pay was rolled into base pay constituting the City’s incentive payment for EMT skills. In the event an employee’s EMT certification expires, the employee will be taken off the line and placed in an unpaid status until the employee can submit proof of EMT recertification. Section 5. Bilingual Pay Employees who have successfully demonstrated proficiency in any of the approved languages shall receive a 5% premium in addition to their base salary. a. Approved Languages: Spanish, Chinese (Mandarin and Cantonese), Japanese, Tagalog, Korean, Vietnamese, Russian, American Sign Language, and such other languages as determined by management. 13 b. Proficiency Requirements The City shall develop and provide a method of testing for proficiency in the above listed languages. The City will pay for the first test in any approved language however subsequent testing will be at the employee’s own expense. An employee must pass the proficiency test to maintain the bilingual pay. The Fire Chief shall have the authority to require employees receiving bilingual pay to re-certify with the Human Resources Department as necessary and reasonable. c. Arbitratability The City’s substantive evaluation of an employee’s knowledge of and skills in a designated second language shall not be subject to the grievance procedure or review by an arbitrator. ARTICLE IX - HOLIDAYS Section 1. Named Holidays. The following holidays are recognized as municipal holidays for pay purposes, and regular, employees shall have these days off with pay, except as otherwise provided in these rules: January 1 Veterans’ Day, November 11 Third Monday in January Thanksgiving Day Third Monday in February Day after Thanksgiving Day Last Monday in May December 25 July 4th Either December 24, or December 31 as provided below First Monday in September Second Monday in October 149.5 hours is the total amount of holiday hours paid annually to an employee divided by 26 payroll periods which equals 5.75. Shift personnel shall receive pay in lieu of taking paid leave for accrued holidays. Such paid hours are in addition to the normal biweekly base pay. Shift personnel will accumulate a biweekly amount of 5.75 hours. Hours are prorated and accrued based on hours actually worked. If employees elect to be paid for these hours at any time before the scheduled payoff, they must make sure they have sufficient hours in their Holiday account and record the hours on their timecard in the total columns of the timecard only. Accrued Holiday balances will be automatically paid off in the months of June and December. 14 Section 2. Conditions. a. Personnel assigned to a 40-hour work schedule will receive paid holidays in accordance with Sections 517 and 518 of the Merit System Rules and Regulations. b. Personnel assigned to a 40-hour work schedule will receive floating days off with pay in each of the following months: August, September, March, April, and June. The following conditions will hold: (1) Management will designate the schedule of the paid day off under this section at least thirty days in advance. (2) 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 day will be added to the employee's vacation accrual. (3) 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 X - OVERTIME COMPENSATION Section 1. Compensation. Shift personnel assigned to overtime relief duty in addition to their regular 56-hour shift schedule shall receive overtime compensation at a rate of one and one-half times the employee's basic 56-hour rate, or out-of-class rate if such applies, for all hours of the relief duty shift. Required off-duty training will be compensated at the rate of one and one-half times the basic 40-hour rate or as otherwise agreed. Emergency callback will be compensated at a rate of one and one- half times the basic 40-hour rate to a maximum of 8 hours, and at a rate of one and one-half times the basic 56-hour rate for those hours in excess of 8 hours. Overtime duty assignments will first be made from the voluntary overtime list. If such assignments cannot be filled from the voluntary overtime list, the vacant position will be filled by moving up on-shift personnel through out-of class assignment. Any remaining vacancy will then be filled by overtime duty assignment made in reverse order of hire date seniority according to specialty and qualifications required to be assigned. The overtime duty assignment seniority list will be adjusted annually on October 31. ARTICLE XI - APPARATUS STAFFING Engine, truck and combination rescue companies shall be deployed for emergency services purposes at the level of one Fire Captain, one Fire Apparatus Operator and one Fire Fighter. Truck companies have the option of deploying at the level of two Fire 15 Apparatus Operators instead of one Fire Apparatus Operator and one Firefighter. This option shall be determined by seniority. Paramedic ambulance staffing shall be two personnel; the City will dispatch personnel on Emergency Medical Service calls such that a minimum of 1 licensed paramedic responds. The Foothill Fire Station #8, when activated by the Fire Chief, shall be staffed with a minimum of one Fire Apparatus Operator and one Fire Fighter. City may dispatch a two-person quick response vehicle with a minimum of 1 paramedic. ARTICLE XII - FIRE DEPARTMENT PROGRAMS Section 1. Programs. The Union agrees to continue its cooperation and participation in existing weather station and community blood pressure screening and measurement programs. ARTICLE XIII - WORK ASSIGNMENTS AND TRANSFERS It is the intent of the Palo Alto Fire Administration and Local 1319 that work assignments and transfers will reflect the best interests of the Fire Department and the City. The Fire Department will maintain a constant state of readiness to defend against fire and other disasters. It is therefore imperative that all Fire Department divisions assign personnel in the best manner to respond to the needs of the City and the Department. It is also acknowledged that the Fire Chief is responsible to make and/or approve the work assignments or transfers of Fire Department personnel. The Fire Chief or designee will maintain a four-year station and shift assignment, seniority-based bid system covering the following classifications within Fire Operations on a rotational basis: Fire Captain, Apparatus Operator and Fire Fighter. The Fire Chief, or his designee, shall initiate personnel assignments and transfers to balance platoon or division strength, fill permanent or temporary vacancies and provide required training to individual personnel. Such assignments will be based on seniority, except where career development, training, special assignments, skills and documented performance issues are specifically identified in writing, management may make assignments based on such issues. For purposes of this article, seniority shall be computed from the date of entry into the current classification. Section 1. Shipouts. When possible, least senior Fire Fighters will be given short term or shipout relief duty. In order to maintain training continuity, shipouts of probationary personnel will not be permitted during the first three-month training cycle. Probationary fire fighters will be assigned to Stations 1, 2, 3, 4, 5, or 6 during their probationary period, filling vacancies first, when possible. Upon completion of the first three-month training cycle, the probationary fire fighter will be eligible for short term or shipout relief duty. If after completion of the first three-month training cycle, a probationary employee fails any monthly testing process, or is the subject of 16 identified training needs, the probationary employee will be removed from short term or shipout relief duty for a 60-day period. Section 2. Vacation Relief Positions. In order that platoon strengths can be balanced more quickly and to reduce the need for excess overtime, two positions will be designated for vacation relief. These positions will be the lowest two on the Department seniority list who have completed their probationary period. a. The vacation relief persons will be assigned to one station when not on relief assignment. b. Relief assignment can be made to any Station or shift where a shortage of personnel will cause unnecessary overtime. c. Shortages may be caused by vacation, sick leave, disability or any leave of absence that causes a shift to be short of personnel while another has a surplus. d. Shift transfers will be made so as not to cause the relief person to work more than the prescribed number of hours in the prescribed period. e. Relief assignments will be made and hours will be coordinated by the Battalion Chief's office. Section 3. Transfer Requests. Non-probationary fire personnel may submit transfer requests to their immediate supervisor to be forwarded to the appropriate chief officer. Providing that Departmental needs are satisfied, such transfers will be administered using first a mutually agreeable exchange, secondly seniority. The transfer requests shall remain on file during the year and may be granted when a vacancy occurs, providing the requesting employee possesses the experience and performance ability required to fill the vacancy. Section 4. Special Assignments. Management reserves the right to assign personnel to career development opportunities, special projects, seminars, programs and selected educational and/or training courses, based on Fire Department needs and the performance of the employee. Section 5. Continuous Hourly Service. Continuous hours of service in excess of 72 hours are subject to approval by the Fire Chief or designee. Approval may be granted when an employee has not been engaged in a greater than usual level of activity or is not fatigued. 17 ARTICLE XIV - TRAINING COORDINATION Section 1.Coordination. Three shift employees per platoon may be assigned to assist the Training Officer in the coordination, preparation and scheduling of the training program. It is agreed that volunteers will first be sought for such assignment, and further agreed that the details of this section shall be established by mutual agreement between the Fire Chief and the Union. ARTICLE XV - PARAMEDIC ASSIGNMENT Section 1. Limit of Eligibility. The City reserves the right to limit eligibility for the Paramedic Program to the Fire Fighter classification. The City may, at its discretion, add other classifications within the represented bargaining unit to meet the need of program changes. Differentials for other classifications will be as provided in Article VIII, Section 1. Section 2. Additional Candidate Training. As the Program progresses, Management will assess the need for training additional Paramedic candidates. It is Management's intention to provide for such additional training as necessary for Program continuity. Section 3. Incentives. Paramedics will receive a one-time cash payment of $500 for each biennial recertification. This provision applies only to active incumbents of authorized paramedic positions who remain in the paramedic assignment for at least one additional year after recertification. The one year requirement after recertification does not apply to those paramedics who may leave the program because of work- related injury or illness, or promotion, nor does it apply when a paramedic is asked by management to recertify in order to voluntarily extend their paramedic service to meet special departmental needs for a period of less than one year. Section 4. Proctoring. Paramedic proctoring assignments will be made by the Chief from among qualified volunteers. Payment of $600 will be made to the primary proctoring paramedic at the conclusion of each proctoring assignment. The Chief or his or her designee will maintain a list of qualified proctors from among volunteers. Personnel will be selected by the Fire Chief or his or her designee from the list to serve as paramedic proctors. If a conflict arises between the City and the Union regarding the Proctor Program, either side may suspend the program at the annual renewal period and shall remain suspended until a resolution or agreement is reached. Section 5. Field Training Stipend. Employees assigned to provide field training for new paramedic accreditation will receive a $300 stipend to train a new paramedic to successful completion of paramedic accreditation. This assignment is at the discretion of the Chief or their designee. 18 ARTICLE XVI - PROMOTION Section 1. Promotion Step Level. All regular promotions from classifications within the representation unit to the classification of Fire Captain will be made at the fifth step on the salary range. Section 2. Promotion Process Information. For promotions to positions within the representation unit, promotion process information will be available in the Human Resources Department office at the time of posting. Information will include applications, minimum qualifications, study material reference information, if appropriate, and information on passing scores. Any changes in an established testing process must be submitted in writing to the Union for review and input no fewer than 60 days prior to the beginning of the process. ARTICLE XVII - REDUCTION IN FORCE Section 1. Order of Reduction. If the work force is reduced (reduction in force) within a represented classification, unit employees having the shortest length of service with the Fire Department will be laid off first so long as employees retained are fully qualified, trained and capable of performing remaining work. ARTICLE XVIII - SELECTIVE CALL BACK WITH REGARD TO RESIDENCY Section 1. In Case of Emergency Management may use selective call back with regard to residency in cases of emergency. ARTICLE XIX - HEALTH BENEFITS Section 1. Maintenance of Levels Except as otherwise set forth herein, the City will maintain the present level of benefits on all City-sponsored medical programs. Section 2. Vision Care. The City offers vision care coverage for employees and dependents. Coverage is equivalent to $20 Deductible Plan A under the Vision Service Plan, with monthly premiums paid by the employer. Dependents include domestic partners, as defined under Article XX Section 3(b). 19 Section 3. PEMHCA Health Plan. a. ACTIVE EMPLOYEES: During the term of this contract, the maximum City contribution towards medical premiums for eligible full time employees per employee category shall be up to a maximum of the following for any plan: Medical Premium Category PEMHCA Contribution* Total Maximum City Contribution (inclusive of PEMHCA contribution) effective from time of ratification through December 31, 2018 Total Maximum City Contribution (inclusive of PEMHCA contribution) effective January 1, 2019 Employee Only $133.00 $804 $840 Employee plus one $133.00 $1606 $1680 Employee Family $133.00 $2088 $2180 The City’s total maximum contribution towards medical premiums for eligible part time employees shall be prorated based on the number of hours per week the part-time employee is assigned to work. * Any increases to the PEMHCA minimum during the term of this contract will result in a corresponding decrease to the amount of the additional City contribution, so that the total maximum City contribution never exceeds the Total Maximum City Contribution described above. If the State of California or federal government requires the City to participate and contribute toward coverage under any medical plan outside of PEMHCA including but not limited to the Affordable Care Act, 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 parties will meet and confer over the impact of such change on matters within the scope of representation before implementing any change. b. Active employee domestic partners whose domestic partnership is registered with the State of California may add their domestic partner as a dependent to their elected health plan coverage if the domestic partner is registered with the Secretary of State. Active employee domestic partners whose domestic partnership is not registered with the State but 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 90% of the average monthly premium cost of individual coverage under the PEMHCA health plans in 20 2016. Effective with the first pay period including January 1, 2017, a stipend of two hundred eighty four ($284) per month toward the cost of an individual health plan will be provided. Evidence of premium payment will be required with request for reimbursement. c. Alternate Medical Benefit Program. If a regular employee and/or the employee’s dependent(s) are eligible for and elect to receive medical insurance through any non-City of Palo Alto sponsored or association medical plan, the employee may choose to waive his/her right to the City of Palo Alto’s medical insurance coverage and receive cash payments in the amount of two hundred and eighty four dollars ($284) for each month City coverage is waived. Examples of waivers eligible for this payment are: • Employee waives all applicable City medical coverage; or • Employee is eligible to enroll his or her spouse or domestic partner and waives medical coverage for the spouse or domestic partner; or • Employee has additional eligible dependents and waives family-level medical coverage. Participation must result in a health insurance cost savings to the City and payments per employee shall not exceed a total of two hundred eighty four dollars ($284) per month. To participate in the program the employee and dependents must be eligible for coverage under PEMHCA medical plans, complete a waiver of medical coverage form, and provide proof of eligible alternative medical coverage. Payments will be made in the employee’s paycheck beginning the first month following the employee’s completion of the waiver form. Payments are subject to state and federal taxes and are not considered earnings under PERS law. Employees are responsible for notifying the City of any change in status affecting eligibility for this program (for example, life changes affecting dependent’s eligibility for medical coverage through the employee) and will be responsible for repayment of amounts paid by the City contrary to the terms of this program due to the employee’s failure to notify the City of a change in status. d. Dual Coverage. When a City employee is married to another City employee each shall be covered only once (as an individual or as a spouse of the other City employee, but not both) and dependent children, if any, shall be covered only by one spouse. 21 ARTICLE XX - DENTAL BENEFITS Section 1. Level of Benefits. The City will maintain the present level of benefits on the City-sponsored dental program. Maximum benefits per calendar year shall be $2,000. Section 2. Premiums. The City shall pay all premium payments or equivalent self- insured program charges on behalf of employees and dependents who are eligible and enrolled for coverage under the existing dental plan. Dependents will include domestic partners, as defined under Article XX, Section 3(b). Section 3. Orthodontia Benefit Maximum. The City will provide a 50% of reasonable charges, $2,000 lifetime maximum orthodontic benefit for representation unit employees and their dependents. ARTICLE XXI - LIFE INSURANCE Section 1. Premiums. The City currently pays the following amounts of premium on behalf of Fire personnel: Per Pay Period Per Month (Approx.) Basic Life Insurance and Basic ADD $.085 $ .185 (per $1,000 of coverage) The basic life insurance provided by the City shall equal the employee’s base monthly salary multiplied by twelve. ARTICLE XXII - RETIREMENT BENEFITS Section 1. PERS Retirement Formula. Safety Pension Group A: 3%@50 Safety Retirement The City will continue the present benefits under the Public Employees' Retirement System (PERS) "3 percent at 50 (3%@50)" formula for employees hired before the effective date of the “3 percent at 55” (3%@55) formula for new hires as described herein. The final year compensation for employees hired under the 3% at 50 formula will continue to be “Single highest year” or the highest average annual compensation earnable by the member during one (1) year of employment immediately preceding retirement or the one-year period otherwise designated by the member (Government Code section 20042). Safety Pension Group B: 3%@55 Safety Retirement Effective December 7, 2012, the City amended its contract with CalPERS to provide employees hired on or after that date who are not “new members” of CalPERS, as 22 defined in the Public Employees’ Pension Reform Act (often referred to as “classic” CalPERS members) with the CalPERS retirement formula three percent of final salary at age 55 (“3%@55”), with the final salary determination for such employees of “3 highest consecutive years” based on the highest average annual compensation earnable by the member during three (3) consecutive years of employment immediately preceding retirement or the three-year period otherwise designated by the member (Government Code section 20037). Safety Pension Group C: 2.7% at Age 57 Safety Retirement Employees hired on or after January 1, 2013 meeting the definition of “new member” under the Public Employees’ Pension Reform Act (Gov’t. Code s. 7522 et seq.) shall be subject to all of the provisions of that law, including but not limited to the two point seven percent at age 57 (2.7%@57) retirement formula with a three year final compensation period. Section 2. PERS Member Contribution. a. Employees in all represented classes in Pension Groups A and B described above will make the 9% PERS member contributions by payroll deduction. b. Employees in all represented classes in Pension Group C described above shall pay the employee contribution required by the Public Employees’ Pension Reform Act, currently calculated at fifty percent (50%) of the normal cost. c. When employees pay their PERS Member Contribution pursuant to section 3a and 3b above, the City will provide for member contributions to be made as allowed under provisions of IRS Code Section 414(h)(2). Section 3. Additional Employee PERS contributions In addition to the PERS member contribution as required under section 2. a, b and c above, all employees in pension groups a, b and c shall contribute the additional following contributions: a. In addition to the Member Contribution required per CalPERS 20516 contract amendment all employees regardless of pension formula in this unit shall pay 3% towards the Employer share of Pension. b. Effective the first full pay period following July 1, 2020, all employees regardless of pension formula in this unit shall, in addition to the Member Contribution required, pay an additional 1% towards the employer share of Pension for a total of 4%. 23 Section 4. Option 2 Death Benefit. The City provides the Pre-Retirement Option Settlement 2 Death Benefit. The Pre-Retirement Optional Settlement 2 Death Benefit provides the spouse of a deceased member, who was eligible to retire for service at the time of death, with an alternate option to the lump sum Basic Death Benefit whereby the surviving spouse can elect a monthly allowance equal to the amount the member would receive if he/she had retired from service on the date of death and elected Optional Settlement 2 (the highest monthly allowance a member can leave a spouse). Section 5. Military Service Credit. The City will provide the Public Employees’ Retirement System benefit known as “Section 20930.3, Military Service Credit as Public Service.” Section 6. 1959 Survivor Benefit. The City will continue to provide the basic level of 1959 PERS Survivor Benefit to eligible employees in accordance with Government Code section 21571. Section 7. Employer Contributions to 457 Plan Effective the first full pay period following July 1, 2020, the City will contribute the equivalent of 1% of the employee’s pensionable salary into the 457 plan. Eligibility: a. Employees must be enrolled in an eligible City sponsored 457 plan b. Employees who reach the maximum as defined by the IRS will not receive additional contributions c. Employee must be making PERS contributions ARTICLE XXIII - RETIREMENT MEDICAL PLAN Section 1. Retiree medical coverage for Unit employees hired before January 1, 2004: Monthly City-paid premium contributions for a retiree-selected PEMHCA optional plan will be made in accordance with the Public Employees' Medical and Hospital Care Act Resolution for employees that retire on or before December 31, 2006. Effective January 1, 2007 for an employee retiring on or after that date the City will pay up to the monthly medical premium for the 2nd most expensive plan offered to IAFF employees among the existing array of plans. However, the City contribution for an employee hired before January 1, 2004 who retires on or after December 1, 2011 shall be the same contribution amount it makes for active City employees. Effective upon ratification and adoption of this Agreement, the City shall provide active unit employees who were hired before January 1, 2004 with a one-time opportunity to opt-in to retiree health benefits provided under California Government Code section 22893. Eligible employees who wish to exercise this option shall inform the People, Strategy, and Operations department of their election in writing no later than 90 days 24 following the ratification and adoption of this Agreement. Section 2. 20-Year Vesting for Retiree Medical Coverage for Unit Employees Hired On Or After January 1, 2004: a) The retiree health benefit provided in California Government Code section 22893 shall apply to all employees hired on or after January 1, 2004. Under this law, an employee is eligible to receive Fifty (50) percent of benefit after ten (10) years; each additional service credit year after Ten (10) years will increase employer credit by Five (5%) percent until Twenty (20) years is reached at which time employee is eligible for One Hundred (100%) percent of annuitant- only coverage and Ninety (90%) percent of the additional premium for dependents. ARTICLE XXIV - DEPENDENT CARE ASSISTANCE PROGRAM (DCAP) Section 1. DCAP. The City will provide a dependent care assistance program for employees subject to the provisions of applicable law. The program will remain in effect subject to a reasonable minimum participation level and availability of third party administrative services at a reasonable cost. ARTICLE XXV - VACATION ACCRUAL Section 1. Accrual Rate. All eligible fire suppression persons shall accrue vacation at the following rate for continuous service performed in a pay status. Non-shift representation unit employees shall accrue the 40-hour equivalent--one shift equals sixteen hours. a. For employees completing less than four years continuous service, the accrual rate shall be five duty shifts per year. b. For employees completing four but not more than nine years continuous service, the accrual rate shall be eight duty shifts per year. c. For employees completing nine but not more than 14 years continuous service, the accrual rate shall be 10 duty shifts per year. d. For employees completing 14 but less than 19 years continuous service, the accrual rate shall be 11 duty shifts per year. e. For employees completing 19 or more years continuous service, the accrual rate shall be 12 duty shifts per year. Section 2. Unused At Termination. Represented employees who fail to use all vacation as accrued may continue the accrual balance and be entitled to all accrued but unused vacation upon termination, except as limited below. 25 Section 3. Limits. Vacation accrual balances shall be limited to three times the annual accrual rate. Accrual credit beyond this limit shall not be recognized or compensated, except that for employees of record as of January 1, 1984 who have vacation excess on a one-time basis shall be set aside (banked) to be subsequently used as vacation or paid at termination. No additions may be made to the bank. The bank is established only to facilitate changeover from unlimited to three times annual accrual rate limitation on vacation accrual as herein provided. ARTICLE XXVI - USE OF VACATION Section 1. Maximum Number of Slots. The maximum number of vacation scheduling slots for representation unit suppression employees is four (4) per platoon on a year- round basis. Section 2. Approvals. Vacation scheduling must be approved by the Battalion Chief or Fire Chief. The minimum is twelve (12) hours or more for suppression employees. Advance vacation schedules for suppression shall begin either at 8:00 a.m. or 8:00 p.m. Section 3. Vacation Pay. Vacation pay shall be made available in advance of regular pay day provided that employee requests such advance in writing to the Finance Department at least two weeks prior to his/her vacation date. The employee's supervisor must verify vacation date on the request. Section 4. Illness on 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 hospitalized for any period, the employee shall have the period of illness charged against sick leave and not against vacation leave. Section 5. When to be Taken. The time at which an employee may use accrued vacation leave and the amount to be taken at any one time shall be determined by the Chief with particular regard for the needs of the City, but insofar as possible, considering the wishes of the employee. Section 6. Limitation on Use. Employees may not use more than three times their annual rate of accrual in any calendar year period provided, however, that the Chief may grant exceptions to this limitation. Section 7. Waiting Period. Employees shall complete six months continuous service before using accrued vacation leave. Section 8. Double Compensation Prohibited. Employees shall not work for the City during their vacation. 26 Section 9. Cash out Option. Once each calendar year an employee may cash out eight (8) or more hours of vacation accrual in excess of eighty (80) hours to a maximum of one hundred twenty (120) hours; PROVIDED, that the employee has taken eighty (80) hours of vacation off with pay in the previous twelve (12) months. ARTICLE XXVII - SICK LEAVE Section 1. Statement of Policy. Sick leave shall be allowed and used only in case of actual personal sickness or disability, medical or dental treatment, or as authorized in Section 9. Up to six (6) days (72 shift hours for suppression personnel) sick leave per year may be used for illness in the immediate family (wife, husband, child, parent, parent-in-law, brother, sister, registered domestic partner, or close relative residing in the household of the employee.) Section 2. Eligibility. Regular employees shall be eligible to accrue and use sick leave. Section 3. Accrual. Sick leave shall be accrued bi-weekly, provided the employee has been in a pay status for 50 percent or more of a bi-weekly pay period. Sick leave shall be accrued at the rate of six shifts per year. Section 4. Accumulation. Accumulated sick leave may be accrued without limit, except as provided in Section 8 below. Section 5. Use. Sick leave may be used as needed and approved, to the point of depletion, at which time the employee will no longer receive pay for sick leave. A new employee may, if necessary, use up to forty-eight (48) hours or shift equivalent of sick leave at any time during the first six months of employment. Any negative balances generated by such utilization will be charged against future accrual or deducted from final paycheck in the event of termination. 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 his/her option, choose either to receive the long- term disability benefits or to utilize the remainder of his/her accrued sick leave prior to applying for long-term disability benefits. Sick leave will not be granted for illness occurring during any leave of absence other than sick leave, unless the employee can demonstrate that it was necessary to come under the care of a doctor while on such other leave of absence. When an employee finds it necessary to be absent for any reason, he/she should cause the facts to be reported to the department within 60 minutes prior to his/her regular starting time on the first working day of absence, and shall regularly report on, or account in advance for each work day thereafter unless hospitalized or otherwise indisposed. Such reports may be subject to written documentation. Sick 27 leave shall not be granted unless such report or advance accounting has been made, provided, however, that the department head may grant exception to this policy where the circumstances warrant. Section 6. Depletion of Sick Leave Benefits. Upon depletion of sick leave or the beginning of the period to be covered by payments under long-term disability group insurance coverage, whichever comes first, an employee may be granted a medical leave of absence without pay for a period not exceeding sixty days. If the employee is unable to return to work at the end of this period, he/she must request further medical leave which will be subject to the approval of the City Manager. If further leave is granted, the employee must notify the City of intent to return to work every thirty days. If further leave is not granted, the employee's service with the City shall be considered terminated. Section 7. Forfeiture Upon Termination. Employees leaving the municipal service shall forfeit all accumulated sick leave, except as otherwise provided by law and Section 8. In the event that notice of resignation is given, sick leave may be used only through the day which was designated as the final day of work by such notice. Section 8. Payment for Accumulated Sick Leave. Eligible employees (those hired before December 31, 1983) who leave the municipal service in good standing, or who die while employed in good standing by the City, 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 basic hourly rate of pay at termination. Full sick leave accrual will be paid in the event of termination due to disability. For new employees hired after December 31, 1983, sick leave accrual accumulation will be limited to 1,000 hours with no payoff provisions for unused balance at termination for any reason. Section 9. Personal Business Leave Chargeable to Sick Leave. It is agreed between the parties that all shift personnel represented by the Union shall have the right to charge up to forty-eight (48) hours personal business leave per year to sick leave, and that all non-shift personnel shall have the right to charge up to twenty (20) hours personal business leave per year to sick leave. Such personal business leave shall be allowed only on a staffing available basis and where the provisions of the minimum staffing agreement are not affected. "Staffing available" means at or above minimum staffing levels as defined in Article XII. Section 10. Return to Work or Continue Work With Limited Duty. In cases of non- work-related injury, illness or pregnancy an employee, upon approval of the Fire Chief and the City Safety Officer, may return to work or continue work with doctor-approved limited duty. Approval for such limited duty shall be based upon department ability to 28 provide work consistent with medical limitations and the length of time of the limitations. Shift employees must be willing to accept any non-shift limited duty schedule work location and may be subject to the reasonable availability of limited duty assignments. The City doctor may be consulted in determining work limitations. ARTICLE XXVIII - SUBPOENAS Employees required to answer subpoenas as a witness for the City of Palo Alto or for a plaintiff where the City of Palo Alto is a defendant shall not lose pay or benefits for work time lost to answer depositions or to appear in court. ARTICLE XXIX - WORKERS' COMPENSATION Section 1. Status Reporting While on Disability. Persons on disability will be required to appear or otherwise report at regular two-week intervals to the Fire Chief or designate to discuss his/her status of medical treatment therapy and physical condition. This section is not meant to unreasonably restrict employee's activities so long as such activities are cleared by the treating physician, treating program or alternative treatment program is maintained and employee is available for full or restricted duty as soon as medical clearance can be received. ARTICLE XXX - PHYSICAL FITNESS MEDICAL EXAMINATIONS Physical fitness medical examinations for all represented employees may include chest x-rays every three years unless otherwise directed by a physician, eye examination and hearing examination. ARTICLE XXXI- LEAVES OF ABSENCE WITHOUT PAY Section 1. 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 physician's verification including diagnosis and medical work restriction. Section 2. Other Leaves. Leaves of absence without pay may be granted in cases of personal emergency or when such absences would not be contrary to the best interest of the City. Non-disability prenatal and/or postpartum leave is available under this provision, but such leave shall not begin more than six months prenatal nor extend more than six months postpartum. Section 3. Accrued Vacation Credits. During unpaid leaves of absence for disability or other reasons, the employee may elect to use accrued vacation credits. Requests 29 for leaves without pay shall not be unreasonably denied. In order to avoid misunderstandings, all leaves without pay must be in writing to be effective. Section 4. Approval of Department Head. Leave of absence without pay for one week or less may be granted by the department head, depending on the merit of the individual case. Section 5. Approval by City Manager. Leave of absence without pay in excess of one week's duration may be granted by the City Manager on the merit of the case, but such leave shall not exceed twelve months' duration. Section 6. Absence Without Leave. Unauthorized leave of absence shall be considered to be without pay, and reductions in the employee's pay shall be made accordingly. Unauthorized leave of absence may result in termination of employment. Section 7. Leave of Absence; Death Outside the Immediate Family. Leave without pay may be granted a regular employee by his/her department head in the event of death to family members other than one of the immediate family, such leave to be granted in accordance with Section 2 and Section 4. Section 8. Military Leave of Absence. State law shall govern the granting of military leaves of absence and the rights of employees returning from such absence. Section 9. Use of paid accruals while on leave. During unpaid leaves of absence for disability or other reasons, the employee may elect and the City may require the employee to use accrued vacation paid leave credits in a manner consistent with state and federal law. Requests for leaves without pay shall not be unreasonably denied. In order to avoid misunderstandings, all leaves without pay must be in writing to be effective. ARTICLE XXXII - LEAVES OF ABSENCE WITH PAY Section 1. City Manager Granted Leaves. The City Manager may grant a regular employee under his control a leave of absence with pay for a period not exceeding thirty calendar days for reasons he deems adequate and in the best interest of the City. Section 2. Council Granted Leave. The City Council may grant a regular employee a leave of absence with pay for a period not to exceed one year for reasons the Council considers adequate and in the best interest of the City. Section 3. Employee's Time Off to Vote. Time off with pay to vote at 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 4. Leaves of Absence; Death in Immediate Family. Leave of absence with pay of one shift with provision for approval of one additional shift for travel outside the 30 area may be granted an employee by the Chief in the event of death in the employee's immediate family, which is defined for purposes of this section as wife, husband, son, son-in-law, daughter, daughter-in-law, father, mother, brother, brother-in-law, sister, sister-in-law, mother-in-law, father-in-law, grandfather, grandfather-in-law, grandmother, grandmother-in-law, uncle, aunt, 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. Requests for leave in excess of two shifts shall be subject to the approval of the City Manager. Section 5. Jury Duty; Leave of Absence. Employees required to report for jury duty 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 for such duties other than mileage or subsistence allowances within thirty days from the termination of his or her jury service. ARTICLE XXXIII – VOLUNTEER LEAVE PROGRAM The City of Palo Alto has established a Firefighter Voluntary Leave Program to provide members of Local 1319 International Association of Fire Fighters (IAFF) employees the opportunity to donate their accrued vacation time to assist fellow members of IAFF either due to: (a) an employee’s own verifiable non-industrial catastrophic illness or injury (as defined herein) or (b) in order to care for a member of the employee’s immediate family (spouse, child, parent or registered domestic partner suffering from a verifiable catastrophic illness or injury) and have exhausted or will presently exhaust all of their paid leave. In order to be eligible to receive donated leave, an employee must have a catastrophic illness or injury or an employee’s immediate family member must have a catastrophic illness or injury that requires the employee to provide full-time care for this family member. Care will be taken to emphasize the voluntary nature of the plan and to insure confidentiality of employee participants and medical conditions (where applicable). A Firefighter Voluntary Leave Sharing Program has been established to accept donations of vacation in accordance with the Program’s guidelines. All donations shall be: 1. Voluntary 2. Irrevocable 3. Confidential, unless disclosure is required by law 4. In whole hour increments of at least four (4) hours, with the hours donated being converted to donee hours based on the donee’s salary rate (so that there will be no cost to the City due to salary differential). 5. The employee shall be required to exhaust all other types of leave to request donated leave 6. It is understood that employees seeking or receiving leave under this program 31 will apply for long-term disability benefits for which they may be eligible 7. Where any of the period during which an employee receives donated leave is designated as family leave under the California Family Rights Act (CFRA/Family Medical Leave Act (FMLA), the employee will be eligible for continuation of medical and other available benefits during that the family leave period (for up to 12 weeks), in accordance with the requirements of those laws. If the employee receiving donated leave is not eligible for CFRA/FMLA benefit continuation, or after the employee has exhausted the available CFRA/FMLA leave period, the employee will need to pay the premiums for continued medical and other available benefits if the employee chooses to continue such coverages through the City 8. If the donation request is based on the need for an employee to care for an immediate family member, as defined above, the family member must require full-time care by the employee. Certification of this requirement by a health care professional is required 9. The maximum donated time a donee may receive is 12 months (if available). 10. Applications to donate leave or receive leave under this Program are made to the Human Resources Department 11. This is a pilot program and is subject to cancellation by either party IAFF members interested in donating leave or in applying to receive donated leave shall complete forms provided by the Human Resources Department. If an applicant for leave is found to meet the criteria set forth herein, Human Resources will determine the availability of and (as applicable) allocation of donated paid leave. Payroll will be notified in writing of the number of hours to be deducted from each donating employee’s vacation balance and transferred to the donee employee(s). The City reserves the right to modify or terminate this program at any time. Catastrophic Illness or Injury (also referred to as “medical emergency” in Revenue Ruling 90-29 and Sections 801(c) and 812 of the Merit Rules and Regulations): A non- occupational medical condition of an employee that will require the prolonged absence of the employee from duty and which will result in a substantial loss of income to the employee because the employee will have exhausted all paid leave available apart from the Voluntary Employee Leave sharing Program. Non-disability postpartum leave as referenced in Merit Rule 801(b) shall not be considered a catastrophic illness or injury under this Policy. ARTICLE XXXIV- TUITION REIMBURSEMENT Section 1. Options. Effective July 1, 2004 the tuition reimbursement program was amended to provide each employee the option of receiving the $1,000 as taxable cash or as a contribution to 32 deferred compensation. The tuition reimbursement program will be eliminated effective July 1, 2012 with no further payouts starting in FY 12-13 and on-going. ARTICLE XXXV - PER DIEM TRAVEL EXPENSES Section 1. City Business. Unless other mutually agreeable arrangements are made, representation unit employees who are required to travel away from the City on City business will receive travel expenses, according to City policies which are currently in effect. ARTICLE XXXVI - HOUSE FUND ITEMS Section 1. Station House Fund. The station house fund per year, per shift employee shall be $100.00. Section 2. Non-Food House Items. The City agrees to furnish and maintain each fire station with non-food house fund items: TV purchase and repair. Kitchen cooking utensils, small kitchen appliances and other specific items to be determined by mutual agreement of the parties will be purchased from the station house fund. The Fire Fighters agree to maintain the voter registration program. ARTICLE XXXVII - PARKING Section 1. Entitlements. Employees in represented classes assigned to Civic Center or adjacent work locations shall be entitled to free parking in the Civic Center Garage, or a commute incentive which will be subject to meet and confer. Employees hired after July 1, 1994, may initially receive a parking permit for another downtown lot, subject to availability of space at the Civic Center Garage. Light duty employees assigned to the Civic Center will receive Civic Center parking temporary permits for the duration of the light duty assignment. ARTICLE XXXVIII- GRIEVANCES The City and the Union agree to establish a grievance procedure as follows: 1. Definition: A grievance is any complaint or dispute regarding the application of interpretation of this Memorandum of Understanding, Department rules, regulations, policies or procedures relating to wages, hours or other terms and conditions of employment. 2. Any non-probationary employee represented by the Union may file and process a grievance. Such aggrieved employees may be represented by the Union or may represent themselves in preparing and presenting their grievance at any level of review. The Union may file a grievance when a Union right not directly 33 related to an individual employee becomes subject to dispute. 3. Any retroactivity on monetary grievances shall be limited to the date of occurrence, except in no case will retroactivity be granted prior to three months before the grievance was filed in writing. 4. Written grievances shall be submitted on forms provided by the City or on forms which are mutually agreeable to the City and the Union. The Union shall deliver a copy of a written grievance to the Human Resources Department Director on the same date that it is first filed with another City representative under the provisions of the below grievance procedure. 5. The time limits specified in this section may be extended by mutual agreement in writing of the aggrieved employee or Union and the reviewer concerned. Should a decision not be rendered within a stipulated time limit, the aggrieved employee may immediately appeal to the next step. The grievance will be considered settled if the decision of any step is not appealed within the specified time limit. 6. If a grievance is related to a promotional process to positions within the representation unit, Step I shall be directed to the Deputy Fire Chief (or Fire Marshal for FPB positions). 7. Step I. The aggrieved employee will first attempt to resolve the grievance through informal discussions with the immediate supervisor by the end of the tenth business day following the discovery of the incident upon which the grievance is based. Every attempt will be made to settle the issue at this level. Step II. If the grievance is not resolved through informal discussion, it may be submitted in writing to the Battalion Chief (Deputy Fire Chief for Captain grievances) within ten business days of the informal discussion. The Battalion Chief/Assistant Fire Chief will have ten business days from receipt of the grievance to review the matter and prepare a written response. If the grievance is denied, the response shall contain the reasons therefore. Step III. If the grievance is not resolved in Step II, it may be submitted in writing to the Fire Chief within ten business days of receipt of the Battalion Chief's/ Deputy Fire Chief's written response. The Fire Chief will have ten business days from receipt of the grievance to review the matter and prepare a written response. If the grievance is denied, the response shall contain the reasons therefore. Step IV. If the grievance is not resolved in Step III, the aggrieved employee may submit the grievance to the City Manager for final determination or to bindinggrievance arbitration. All Step IV appeals must be filed in writing at the Human Resources Department Office within ten business days of receipt of the 34 Fire Chief's response under Step III. All hearings before the City Manager shall be pursuant to the rules and regulations set forth in the City of Palo Alto Merit Rules and Regulations. Hearings before an arbitrator will be as set forth below. In the event the aggrieved employee decides to proceed to arbitration, he/she shall select jointly with the Director of Human Resources an arbitrator. If the parties are unable to agree on an arbitrator, they shall jointly request a panel of five qualified and experienced arbitrators from the State Conciliation Service. Upon receipt of the list of arbitrators, the names shall be alternately struck until one name remains who shall serve as arbitrator. The arbitrator shall be jointly contacted by the parties. The arbitrator shall have jurisdiction and authority only to interpret, apply, or determine compliance with the provisions of the Memorandum of Agreement and such Merit System rules, regulations, policies, procedures, City ordinances or regulations 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 appealed to the arbitrator. The arbitrator shall be without power to make any decision: a. Regarding matters of interest. b. Contrary to, or inconsistent with or modifying in any way, the terms of this Memorandum of Agreement. c. Granting any wage increases or decreases. d. Granting pay or benefits for any period of time prior to the execution date of this Memorandum of Agreement. Where either party seeks arbitration and the other party claims the matter is not subject to the arbitration provisions of the Memorandum of Agreement, the issue of arbitrability shall first be decided by the arbitrator using the standards and criteria set forth in 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. Copies of the arbitrator's decision shall be submitted to the City and the aggrieved employee. All direct costs emanating from the arbitration procedure shall be shared equally by the City and the aggrieved employee or the Union. It is further agreed that the provisions of this section shall be incorporated as part of Chapter 11 of the City of Palo Alto Merit System Rules and Regulations. Existing procedures set forth in Chapter 11, to the extent they are inconsistent with the provisions contained herein, are superseded. 35 ARTICLE XXXIX- SAFETY COMMITTEE Section 1. Committee A Safety Committee comprised of four representation unit members appointed by the Union, and at least two members of Management, will continue to meet. The Committee may make safety recommendations to the Fire Chief regarding equipment, vehicles and apparatus and may review all accidents involving represented personnel. Management shall inform the Safety Committee of all accidents involving injuries to represented personnel. ARTICLE XL – MISCELLANEOUS Section 1. T-Shirts. The City will issue four T-shirts to each uniformed employee each July These T-shirts are for use on duty only and will be maintained by the employee. Section 2. Removal of Disciplinary Actions. Records of disciplinary actions shall be removed from the personnel file of a representation unit employee upon written request by the employee after a period of three years, or sooner if mutually agreed by the Fire Chief and the employee. ARTICLE XLI - FULL UNDERSTANDING Section 1. Full and Entire Understanding. The Memorandum of Agreement contains the full and entire understanding of the parties regarding the matters set forth herein. Section 2. Fair Labor Standards Act. Compensatory time off with Management approval may be used as an alternative to overtime compensation only within the 27- day work period within which the overtime is worked. Section 3. Severability. Should any of the provisions herein contained be rendered or declared invalid by reason of any existing State or Federal legislation or by reason of State or U.S. Supreme Court ruling, such invalidation of such part or portion of this Memorandum of Agreement shall not invalidate the remaining portions hereof, and they shall remain in full force and effect, insofar as such remaining portions are severable. Section 4. Good Faith. It is the intent of the parties that ordinances, resolutions, rules and regulations enacted pursuant to this Memorandum of Understanding be administered and observed in good faith. Section 5. Merit System Rules and Regulations. During the term of this Memorandum of Agreement, Management may propose certain changes in the City Merit System Rules and Regulations. With regard to such changes which pertain to the representation unit, the parties agree to review, and upon request, meet and confer regarding the changes. 36 Section 6. Station Consolidation or Relocation . During the term of this agreement, at management request, the parties agree to meet and confer with regard to issues pertaining to fire station consolidation or relocation. Section 7. Meet and Confer. Nothing in this agreement shall preclude the parties from mutually agreeing to meet and confer on any subject within the scope of representation during the term of this agreement. ARTICLE XLII – 48/96 Work Schedule The regular schedule for 56 hour personnel will be under a “48/96” model. With the adoption of this “48/96” schedule the parties agreed to revise Fire Department policy 205.6 typical workday and 1009.8.1 Reporting for Duty- Holidays. ARTICLE XLIII – FUTURE SERVICE DELIVERY MODELS Effective upon request of the City, the parties will meet and confer in good faith regarding the service delivery model of current inspection services and transport during the term of this Agreement. ARTICLE XLIV - DURATION This Memorandum of Agreement shall become effective upon adoption by the City Council through June 30, 2021. 38 88 EXECUTED: FOR: FOR: INTERNATIONAL ASSOCIATION CITY OF PALO ALTO FIRE FIGHTERS James Keene, City Manager Rumi Portillo, Human Resources Director Sandra Blanch, Assistant Director of Human Resources Nicholas Raisch, Manager of Employee Relations and Training Geoffrey Blackshire, Deputy Fire Chief Maria Patino, Human Resources Representative Ryan Stoddard, President Local 1319 Nate Heydorff, Vice President Local 1319 Sunny Johnson-Gutter, Secretary Local 1319 39 88 APPENDIX A 23 4 678 911121314 Job Code FLSA SH/NS Job Title Step Rate Monthly Annual Step Rate Monthly Annual Step Rate Monthly Annual 601 Non‐exempt SH FIRE APPARATUS OP 1 33.80$        1 34.81$              1 35.86$               601 2 35.58$        2 36.64$              2 37.75$               601 3 37.45$        3 38.57$              3 39.74$               601 4 39.42$        4 40.60$              4 41.83$               601 5 41.49$        10,068$          120,819$           5 42.74$              10,372$                 124,459$               5 44.03$              10,685$                         128,215$            602 Non‐exempt SH FIRE CAPTAIN 1 40.09$        1 41.30$              1 42.54$               602 2 42.20$        2 43.47$              2 44.78$               602 3 44.42$        3 45.76$              3 47.14$               602 4 46.76$        4 48.17$              4 49.62$               602 5 49.22$        11,944$          143,329$           5 50.70$              12,303$                 147,638$               5 52.23$              12,674$                         152,094$            603 Non‐exempt SH FIRE INSPECTOR 1 42.10$        1 43.37$              1 44.68$               603 2 44.32$        2 45.65$              2 47.03$               603 3 46.65$        3 48.05$              3 49.50$               603 4 49.10$        4 50.58$              4 52.10$               603 5 51.68$        12,541$          150,492$           5 53.24$              12,920$                 155,035$               5 54.84$              13,308$                         159,694$            604 Non‐exempt SH FIRE FIGHTER 1 31.62$        1 32.57$              1 33.54$               604 2 33.28$        2 34.28$              2 35.30$               604 3 35.03$        3 36.08$              3 37.16$               604 4 36.87$        4 37.98$              4 39.12$               604 5 38.81$        9,418$             113,015$           5 39.98$              9,702$                   116,422$               5 41.18$              9,993$                            119,916$            606 Non‐exempt SH OPER PARAMEDIC‐12.5 1 38.01$        1 39.17$              1 40.35$               606 2 40.01$        2 41.23$              2 42.47$               606 3 42.12$        3 43.40$              3 44.70$               606 4 44.34$        4 45.68$              4 47.05$               606 5 46.67$        11,325$          135,903$           5 48.08$              11,667$                 140,009$               5 49.53$              12,019$                         144,231$            608 Non‐exempt SH CAPTAIN PARAMEDIC‐12.5 1 45.10$        1 46.46$              1 47.86$               608 2 47.47$        2 48.91$              2 50.38$               608 3 49.97$        3 51.48$              3 53.03$               608 4 52.60$        4 54.19$              4 55.82$               608 5 55.37$        13,436$          161,237$           5 57.04$              13,842$                 166,100$               5 58.76$              14,259$                         171,109$            610 Non‐exempt SH INSPCTR PARAMDC‐12.5 1 45.51$        1 46.87$              1 48.29$               610 2 47.91$        2 49.34$              2 50.83$               610 3 50.43$        3 51.94$              3 53.50$               610 4 53.08$        4 54.67$              4 56.32$               610 5 55.87$        13,558$          162,693$           5 57.55$              13,965$                 167,586$               5 59.28$              14,385$                         172,623$            676 Non‐exempt SH F FIGHTR PARAMEDC‐12.5 1 35.57$        1 36.62$              1 37.72$               676 2 37.44$        2 38.55$              2 39.71$               676 3 39.41$        3 40.58$              3 41.80$               676 4 41.48$        4 42.72$              4 44.00$               676 5 43.66$        10,595$          127,138$           5 44.97$              10,913$                 130,953$               5 46.32$              11,240$                         134,884$            IAFF Salary Schedule Effective  the pay period following adoption  (5.5% Increase) Effective first full pay period following July 1, 2019 (3% Increase) Effective first full pay period following July 1, 2020 (3% Increase) 23 4 678 911121314 Job Code FLSA SH/NS Job Title IAFF Salary Schedule Effective  the pay period following adoption  (5.5% Increase) Effective first full pay period following July 1, 2019 (3% Increase) Effective first full pay period following July 1, 2020 (3% Increase) 677 Non‐exempt SH HAZ MAT SPEC 1 43.32$        1 44.63$              1 45.97$               677 2 45.60$        2 46.98$              2 48.39$               677 3 48.00$        3 49.45$              3 50.94$               677 4 50.53$        4 52.05$              4 53.62$               677 5 53.19$        12,907$          154,889$           5 54.79$              13,296$                 159,548$               5 56.44$              13,696$                         164,353$            678 Non‐exempt SH HAZ MAT INSPECTOR 1 42.10$        1 43.37$              1 44.68$               678 2 44.32$        2 45.65$              2 47.03$               678 3 46.65$        3 48.05$              3 49.50$               678 4 49.10$        4 50.58$              4 52.10$               678 5 51.68$        12,541$          150,492$           5 53.24$              12,920$                 155,035$               5 54.84$              13,308$                         159,694$            680 Non‐exempt SH FIRE FIGHTER HAZ MAT 1 33.18$        1 34.20$              1 35.23$               680 2 34.93$        2 36.00$              2 37.08$               680 3 36.77$        3 37.89$              3 39.03$               680 4 38.71$        4 39.88$              4 41.08$               680 5 40.75$        9,889$             118,664$           5 41.98$              10,187$                 122,246$               5 43.24$              10,493$                         125,915$            681 Non‐exempt SH FIRE APPR OP HAZ MAT 1 35.47$        1 36.56$              1 37.64$               681 2 37.34$        2 38.48$              2 39.62$               681 3 39.31$        3 40.50$              3 41.71$               681 4 41.38$        4 42.63$              4 43.91$               681 5 43.56$        10,571$          126,847$           5 44.87$              10,888$                 130,661$               5 46.22$              11,216$                         134,593$            682 Non‐exempt SH FIRE CAPTAIN HAZ MAT 1 42.10$        1 43.38$              1 44.68$               682 2 44.32$        2 45.66$              2 47.03$               682 3 46.65$        3 48.06$              3 49.50$               682 4 49.11$        4 50.59$              4 52.11$               682 5 51.69$        12,543$          150,521$           5 53.25$              12,922$                 155,064$               5 54.85$              13,310$                         159,723$            683 Non‐exempt SH FIRE FIGHTER EMT 1 32.57$        1 33.54$              1 34.56$               683 2 34.28$        2 35.30$              2 36.38$               683 3 36.08$        3 37.16$              3 38.29$               683 4 37.98$        4 39.12$              4 40.30$               683 5 39.98$        9,702$             116,422$           5 41.18$              9,993$                   119,916$               5 42.42$              10,294$                         123,527$            684 Non‐exempt SH FIRE FGHTR HZ MT EMT 1 34.14$        1 35.17$              1 36.23$               684 2 35.94$        2 37.02$              2 38.14$               684 3 37.83$        3 38.97$              3 40.15$               684 4 39.82$        4 41.02$              4 42.26$               684 5 41.92$        10,173$          122,071$           5 43.18$              10,478$                 125,740$               5 44.48$              10,794$                         129,526$            685 Non‐exempt SH FIRE APPARATUS OP EMT 1 34.81$        1 35.86$              1 36.95$               685 2 36.64$        2 37.75$              2 38.89$               685 3 38.57$        3 39.74$              3 40.94$               685 4 40.60$        4 41.83$              4 43.09$               685 5 42.74$        10,372$          124,459$           5 44.03$              10,685$                 128,215$               5 45.36$              11,007$                         132,088$            23 4 678 911121314 Job Code FLSA SH/NS Job Title IAFF Salary Schedule Effective  the pay period following adoption  (5.5% Increase) Effective first full pay period following July 1, 2019 (3% Increase) Effective first full pay period following July 1, 2020 (3% Increase) 686 Non‐exempt SH FIRE AP OP HZ MT EMT 1 36.50$        1 37.60$              1 38.72$               686 2 38.42$        2 39.58$              2 40.76$               686 3 40.44$        3 41.66$              3 42.91$               686 4 42.57$        4 43.85$              4 45.17$               686 5 44.81$        10,874$          130,487$           5 46.16$              11,201$                 134,418$               5 47.55$              11,539$                         138,466$            687 Non‐exempt SH FIRE CAPTAIN EMT 1 41.30$        1 42.55$              1 43.82$               687 2 43.47$        2 44.79$              2 46.13$               687 3 45.76$        3 47.15$              3 48.56$               687 4 48.17$        4 49.63$              4 51.12$               687 5 50.71$        12,306$          147,668$           5 52.24$              12,677$                 152,123$               5 53.81$              13,058$                         156,695$            688 Non‐exempt SH FIRE CAP HAZ MAT EMT 1 43.30$        1 44.61$              1 45.95$               688 2 45.58$        2 46.96$              2 48.37$               688 3 47.98$        3 49.43$              3 50.92$               688 4 50.51$        4 52.03$              4 53.60$               688 5 53.17$        12,903$          154,831$           5 54.77$              13,291$                 159,490$               5 56.42$              13,691$                         164,295$            689 Non‐exempt SH FIRE INSPECTOR EMT 1 43.39$        1 44.68$              1 46.03$               689 2 45.67$        2 47.03$              2 48.45$               689 3 48.07$        3 49.51$              3 51.00$               689 4 50.60$        4 52.12$              4 53.68$               689 5 53.26$        12,924$          155,093$           5 54.86$              13,313$                 159,752$               5 56.51$              13,713$                         164,557$            691 Non‐exempt SH F FGH PRDMD‐12.5 EMT 1 36.52$        1 37.62$              1 38.74$               691 2 38.44$        2 39.60$              2 40.78$               691 3 40.46$        3 41.68$              3 42.93$               691 4 42.59$        4 43.87$              4 45.19$               691 5 44.83$        10,879$          130,545$           5 46.18$              11,206$                 134,476$               5 47.57$              11,544$                         138,524$            693 Non‐exempt SH OPR PRMDC‐12.5 EMT 1 39.03$        1 40.20$              1 41.42$               693 2 41.08$        2 42.32$              2 43.60$               693 3 43.24$        3 44.55$              3 45.89$               693 4 45.52$        4 46.89$              4 48.31$               693 5 47.92$        11,629$          139,543$           5 49.36$              11,978$                 143,736$               5 50.85$              12,340$                         148,075$            695 Non‐exempt SH CAPT PRMDC‐12.5 EMT 1 46.31$        1 47.71$              1 49.13$               695 2 48.75$        2 50.22$              2 51.72$               695 3 51.32$        3 52.86$              3 54.44$               695 4 54.02$        4 55.64$              4 57.31$               695 5 56.86$        13,798$          165,576$           5 58.57$              14,213$                 170,556$               5 60.33$              14,640$                         175,681$            696 Non‐exempt SH HAZ MAT SPEC EMT 1 44.63$        1 45.97$              1 47.36$               696 2 46.98$        2 48.39$              2 49.85$               696 3 49.45$        3 50.94$              3 52.47$               696 4 52.05$        4 53.62$              4 55.23$               696 5 54.79$        13,296$          159,548$           5 56.44$              13,696$                 164,353$               5 58.14$              14,109$                         169,304$            23 4 678 911121314 Job Code FLSA SH/NS Job Title IAFF Salary Schedule Effective  the pay period following adoption  (5.5% Increase) Effective first full pay period following July 1, 2019 (3% Increase) Effective first full pay period following July 1, 2020 (3% Increase) 671 Non‐exempt SH FIRE FGHTR EMT HAZ MT PARA 1 38.09$        1 39.24$              1 40.41$               671 2 40.09$        2 41.30$              2 42.54$               671 3 42.20$        3 43.47$              3 44.78$               671 4 44.42$        4 45.76$              4 47.14$               671 5 46.76$        11,347$          136,165$           5 48.17$              11,689$                 140,271$               5 49.62$              12,041$                         144,493$            672 Non‐exempt SH FIRE AP OP EMT HAZ MT PARA 1 40.72$        1 41.94$              1 43.21$               672 2 42.86$        2 44.15$              2 45.48$               672 3 45.12$        3 46.47$              3 47.87$               672 4 47.49$        4 48.92$              4 50.39$               672 5 49.99$        12,131$          145,571$           5 51.49$              12,495$                 149,939$               5 53.04$              12,871$                         154,452$            661 Non‐exempt SH FIRE CPT  EMT HAZ MT PARA 1 48.32$        1 49.77$              1 51.27$               661 2 50.86$        2 52.39$              2 53.97$               661 3 53.54$        3 55.15$              3 56.81$               661 4 56.36$        4 58.05$              4 59.80$               661 5 59.33$        14,397$          172,769$           5 61.11$              14,829$                 177,952$               5 62.95$              15,276$                         183,310$            634 Non‐exempt NS FIRE APPARATUS OP 1 47.30$        1 48.73$              1 50.19$               634 2 49.79$        2 51.29$              2 52.83$               634 3 52.41$        3 53.99$              3 55.61$               634 4 55.17$        4 56.83$              4 58.54$               634 5 58.07$        10,065$          120,786$           5 59.82$              10,369$                 124,426$               5 61.62$              10,681$                         128,170$            635 Non‐exempt NS FIRE CAPTAIN 1 56.14$        1 57.83$              1 59.56$               635 2 59.09$        2 60.87$              2 62.69$               635 3 62.20$        3 64.07$              3 65.99$               635 4 65.47$        4 67.44$              4 69.46$               635 5 68.92$        11,946$          143,354$           5 70.99$              12,305$                 147,659$               5 73.12$              12,674$                         152,090$            636 Non‐exempt NS FIRE INSPECTOR 1 58.94$        1 60.71$              1 62.54$               636 2 62.04$        2 63.91$              2 65.83$               636 3 65.30$        3 67.27$              3 69.29$               636 4 68.74$        4 70.81$              4 72.94$               636 5 72.36$        12,542$          150,509$           5 74.54$              12,920$                 155,043$               5 76.78$              13,309$                         159,702$            637 Non‐exempt NS FIRE FIGHTER 1 44.25$        1 45.58$              1 46.95$               637 2 46.58$        2 47.98$              2 49.42$               637 3 49.03$        3 50.50$              3 52.02$               637 4 51.61$        4 53.16$              4 54.76$               637 5 54.33$        9,417$             113,006$           5 55.96$              9,700$                   116,397$               5 57.64$              9,991$                            119,891$            638 Non‐exempt NS OPER PARAMEDIC‐12.5 1 53.20$        1 54.80$              1 56.45$               638 2 56.00$        2 57.68$              2 59.42$               638 3 58.95$        3 60.72$              3 62.55$               638 4 62.05$        4 63.92$              4 65.84$               638 5 65.32$        11,322$          135,866$           5 67.28$              11,662$                 139,942$               5 69.30$              12,012$                         144,144$            23 4 678 911121314 Job Code FLSA SH/NS Job Title IAFF Salary Schedule Effective  the pay period following adoption  (5.5% Increase) Effective first full pay period following July 1, 2019 (3% Increase) Effective first full pay period following July 1, 2020 (3% Increase) 639 Non‐exempt NS CAPTAIN PARAMEDIC‐12.5 1 63.15$        1 65.06$              1 67.00$               639 2 66.47$        2 68.48$              2 70.53$               639 3 69.97$        3 72.08$              3 74.24$               639 4 73.65$        4 75.87$              4 78.15$               639 5 77.53$        13,439$          161,262$           5 79.86$              13,842$                 166,109$               5 82.26$              14,258$                         171,101$            641 Non‐exempt NS INSPCTR PARAMDC‐12.5 1 63.69$        1 65.60$              1 67.57$               641 2 67.04$        2 69.05$              2 71.13$               641 3 70.57$        3 72.68$              3 74.87$               641 4 74.28$        4 76.51$              4 78.81$               641 5 78.19$        13,553$          162,635$           5 80.54$              13,960$                 167,523$               5 82.96$              14,380$                         172,557$            642 Non‐exempt NS 40‐HR TRAINING CAPTAIN 1 58.94$        1 60.71$              1 62.54$               642 2 62.04$        2 63.91$              2 65.83$               642 3 65.30$        3 67.27$              3 69.29$               642 4 68.74$        4 70.81$              4 72.94$               642 5 72.36$        12,542$          150,509$           5 74.54$              12,920$                 155,043$               5 76.78$              13,309$                         159,702$            643 Non‐exempt NS 40‐HR TRAINING CAPTAIN EMT 1 60.71$        1 62.53$              1 64.41$               643 2 63.90$        2 65.82$              2 67.80$               643 3 67.26$        3 69.28$              3 71.37$               643 4 70.80$        4 72.93$              4 75.13$               643 5 74.53$        12,919$          155,022$           5 76.77$              13,307$                 159,682$               5 79.08$              13,707$                         164,486$            644 Non‐exempt NS F FIGHTR PARAMEDC‐12.5 1 49.77$        1 51.26$              1 52.80$               644 2 52.39$        2 53.96$              2 55.58$               644 3 55.15$        3 56.80$              3 58.51$               644 4 58.05$        4 59.79$              4 61.59$               644 5 61.10$        10,591$          127,088$           5 62.94$              10,910$                 130,915$               5 64.83$              11,237$                         134,846$            645 Non‐exempt NS HAZ MAT SPEC 1 60.67$        1 62.49$              1 64.37$               645 2 63.86$        2 65.78$              2 67.76$               645 3 67.22$        3 69.24$              3 71.33$               645 4 70.76$        4 72.88$              4 75.08$               645 5 74.48$        12,910$          154,918$           5 76.72$              13,298$                 159,578$               5 79.03$              13,699$                         164,382$            646 Non‐exempt NS HAZ MAT INSPECTOR 1 58.94$        1 60.71$              1 62.54$               646 2 62.04$        2 63.91$              2 65.83$               646 3 65.30$        3 67.27$              3 69.29$               646 4 68.74$        4 70.81$              4 72.94$               646 5 72.36$        12,542$          150,509$           5 74.54$              12,920$                 155,043$               5 76.78$              13,309$                         159,702$            647 Non‐exempt NS FIRE FIGHTER HAZ MAT 1 46.46$        1 47.85$              1 49.30$               647 2 48.90$        2 50.37$              2 51.89$               647 3 51.47$        3 53.02$              3 54.62$               647 4 54.18$        4 55.81$              4 57.49$               647 5 57.03$        9,885$             118,622$           5 58.75$              10,183$                 122,200$               5 60.52$              10,490$                         125,882$            23 4 678 911121314 Job Code FLSA SH/NS Job Title IAFF Salary Schedule Effective  the pay period following adoption  (5.5% Increase) Effective first full pay period following July 1, 2019 (3% Increase) Effective first full pay period following July 1, 2020 (3% Increase) 650 Non‐exempt NS FIRE APPR OP HAZ MAT 1 49.66$        1 51.16$              1 52.70$               650 2 52.27$        2 53.85$              2 55.47$               650 3 55.02$        3 56.68$              3 58.39$               650 4 57.92$        4 59.66$              4 61.46$               650 5 60.97$        10,568$          126,818$           5 62.80$              10,885$                 130,624$               5 64.69$              11,213$                         134,555$            648 Non‐exempt NS FIRE CAPTAIN HAZ MAT 1 58.94$        1 60.71$              1 62.54$               648 2 62.04$        2 63.91$              2 65.83$               648 3 65.30$        3 67.27$              3 69.29$               648 4 68.74$        4 70.81$              4 72.94$               648 5 72.36$        12,542$          150,509$           5 74.54$              12,920$                 155,043$               5 76.78$              13,309$                         159,702$            649 Non‐exempt NS FIRE FIGHTER EMT 1 45.58$        1 46.95$              1 48.36$               649 2 47.98$        2 49.42$              2 50.90$               649 3 50.50$        3 52.02$              3 53.58$               649 4 53.16$        4 54.76$              4 56.40$               649 5 55.96$        9,700$             116,397$           5 57.64$              9,991$                   119,891$               5 59.37$              10,291$                         123,490$            651 Non‐exempt NS FIRE FGHTR HZ MT EMT 1 47.79$        1 49.23$              1 50.71$               651 2 50.30$        2 51.82$              2 53.38$               651 3 52.95$        3 54.55$              3 56.19$               651 4 55.74$        4 57.42$              4 59.15$               651 5 58.67$        10,169$          122,034$           5 60.44$              10,476$                 125,715$               5 62.26$              10,792$                         129,501$            652 Non‐exempt NS FIRE APPARATUS OP EMT 1 48.73$        1 50.19$              1 51.71$               652 2 51.29$        2 52.83$              2 54.43$               652 3 53.99$        3 55.61$              3 57.29$               652 4 56.83$        4 58.54$              4 60.30$               652 5 59.82$        10,369$          124,426$           5 61.62$              10,681$                 128,170$               5 63.47$              11,001$                         132,018$            653 Non‐exempt NS FIRE AP OP HZ MT EMT 1 51.08$        1 52.62$              1 54.21$               653 2 53.77$        2 55.39$              2 57.06$               653 3 56.60$        3 58.31$              3 60.06$               653 4 59.58$        4 61.38$              4 63.22$               653 5 62.72$        10,871$          130,458$           5 64.61$              11,199$                 134,389$               5 66.55$              11,535$                         138,424$            655 Non‐exempt NS FIRE CAPTAIN EMT 1 57.84$        1 59.57$              1 61.35$               655 2 60.88$        2 62.70$              2 64.58$               655 3 64.08$        3 66.00$              3 67.98$               655 4 67.45$        4 69.47$              4 71.56$               655 5 71.00$        12,307$          147,680$           5 73.13$              12,676$                 152,110$               5 75.33$              13,057$                         156,686$            654 Non‐exempt NS FIRE CAP HAZ MAT EMT 1 60.60$        1 62.42$              1 64.30$               654 2 63.79$        2 65.71$              2 67.68$               654 3 67.15$        3 69.17$              3 71.24$               654 4 70.68$        4 72.81$              4 74.99$               654 5 74.40$        12,896$          154,752$           5 76.64$              13,284$                 159,411$               5 78.94$              13,683$                         164,195$            23 4 678 911121314 Job Code FLSA SH/NS Job Title IAFF Salary Schedule Effective  the pay period following adoption  (5.5% Increase) Effective first full pay period following July 1, 2019 (3% Increase) Effective first full pay period following July 1, 2020 (3% Increase) 656 Non‐exempt NS FIRE INSPECTOR EMT 1 60.71$        1 62.53$              1 64.41$               656 2 63.90$        2 65.82$              2 67.80$               656 3 67.26$        3 69.28$              3 71.37$               656 4 70.80$        4 72.93$              4 75.13$               656 5 74.53$        12,919$          155,022$           5 76.77$              13,307$                 159,682$               5 79.08$              13,707$                         164,486$            657 Non‐exempt NS F FGH PRDMD‐12.5 EMT 1 51.11$        1 52.65$              1 54.24$               657 2 53.80$        2 55.42$              2 57.09$               657 3 56.63$        3 58.34$              3 60.09$               657 4 59.61$        4 61.41$              4 63.25$               657 5 62.75$        10,877$          130,520$           5 64.64$              11,204$                 134,451$               5 66.58$              11,541$                         138,486$            658 Non‐exempt NS OPR PRMDC‐12.5 EMT 1 54.63$        1 56.28$              1 57.97$               658 2 57.50$        2 59.24$              2 61.02$               658 3 60.53$        3 62.36$              3 64.23$               658 4 63.72$        4 65.64$              4 67.61$               658 5 67.07$        11,625$          139,506$           5 69.09$              11,976$                 143,707$               5 71.17$              12,336$                         148,034$            697 Non‐exempt NS CAPT PRMDC‐12.5 EMT 1 64.83$        1 66.78$              1 68.78$               697 2 68.24$        2 70.29$              2 72.40$               697 3 71.83$        3 73.99$              3 76.21$               697 4 75.61$        4 77.88$              4 80.22$               697 5 79.59$        13,796$          165,547$           5 81.98$              14,210$                 170,518$               5 84.44$              14,636$                         175,635$            660 Non‐exempt NS HAZ MAT INSPECTOR  EMT 1 60.71$        1 62.53$              1 64.41$               660 2 63.90$        2 65.82$              2 67.80$               660 3 67.26$        3 69.28$              3 71.37$               660 4 70.80$        4 72.93$              4 75.13$               660 5 74.53$        12,919$          155,022$           5 76.77$              13,307$                 159,682$               5 79.08$              13,707$                         164,486$            659 Non‐exempt NS HAZ MAT SPEC EMT 1 62.48$        1 64.35$              1 66.29$               659 2 65.77$        2 67.74$              2 69.78$               659 3 69.23$        3 71.31$              3 73.45$               659 4 72.87$        4 75.06$              4 77.32$               659 5 76.70$        13,295$          159,536$           5 79.01$              13,695$                 164,341$               5 81.39$              14,108$                         169,291$            673 Non‐exempt NS FIRE FGHTR EMT HAZ MT PARA 1 53.30$        1 54.90$              1 56.55$               673 2 56.10$        2 57.79$              2 59.53$               673 3 59.05$        3 60.83$              3 62.66$               673 4 62.16$        4 64.03$              4 65.96$               673 5 65.43$        11,341$          136,094$           5 67.40$              11,683$                 140,192$               5 69.43$              12,035$                         144,414$            674 Non‐exempt NS FIRE AP OP EMT HAZ MT PARA 1 56.99$        1 58.71$              1 60.47$               674 2 59.99$        2 61.80$              2 63.65$               674 3 63.15$        3 65.05$              3 67.00$               674 4 66.47$        4 68.47$              4 70.53$               674 5 69.97$        12,128$          145,538$           5 72.07$              12,492$                 149,906$               5 74.24$              12,868$                         154,419$            23 4 678 911121314 Job Code FLSA SH/NS Job Title IAFF Salary Schedule Effective  the pay period following adoption  (5.5% Increase) Effective first full pay period following July 1, 2019 (3% Increase) Effective first full pay period following July 1, 2020 (3% Increase) 662 Non‐exempt NS FIRE CPT EMT HAZ MT PARA 1 67.63$        1 69.66$              1 71.76$               662 2 71.19$        2 73.33$              2 75.54$               662 3 74.94$        3 77.19$              3 79.52$               662 4 78.88$        4 81.25$              4 83.70$               662 5 83.03$        14,392$          172,702$           5 85.53$              14,825$                 177,902$               5 88.10$              15,271$                         183,248$            48 88 APPENDIX B Letter of Intent The City and IAFF during the term of this agreement will convene a committee to discuss a strike team relief process. The parties mutually agree there is value in giving employees returning from lengthy strike team deployments access to additional leave banks which they currently are unable to utilize. This committee will develop consistent practices for the department to address what steps should be taken and what leave banks employees use based on their return time and date. A new practice shall only be implemented if mutual agreement is reached. 1 MEMORANDUM OF AGREEMENT Between CITY OF PAL0 ALTO and I.A.F.F. LOCAL 1319 July October 1, 20184 – June 30, 20218 2 PREAMBLE __________________________________________________________ 7 ARTICLE I - RECOGNITION _____________________________________________ 7 Section 1. Recognition. ______________________________________________________ 7 ARTICLE II - NO DISCRIMINATION _______________________________________ 7 Section 1. No Discrimination. __________________________________________________ 7 Section 2. Free Choice. ______________________________________________________ 7 Section 3. Human Relations Committee. _________________________________________ 7 ARTICLE III - PAYROLL DEDUCTIONS ____________________________________ 7 Section 1. Payroll Deductions and Written Authorization. ____________________________ 8 Section 2. Certification of Union Membership _____________________________________ 8 Section 3. Indemnification ____________________________________________________ 8 ARTICLE IV - UNION ACTIVITIES ________________________________________ 9 Section 1. On-Duty Time. _____________________________________________________ 9 Section 2. Interoffice Mail, Bulletin Boards, and E-Mail. ______________________________ 9 Section 3. Use of Meeting Places. _____________________________________________ 10 ARTICLE V - NO STRIKES _____________________________________________ 10 Section 1. No Strikes. _______________________________________________________ 10 ARTICLE VI - PROBATIONARY PERIOD _________________________________ 10 Section 2. Part of Testing Process. ____________________________________________ 10 Section 3. Suspension or Termination. _________________________________________ 10 ARTICLE VII - SALARY PROVISIONS ____________________________________ 11 Section 1. Base Wage Rates. ________________________________________________ 11 Section 2. Out-of-Class Compensation. _________________________________________ 12 Section 3. Pay for Court Appearance. __________________________________________ 12 Section 4. Classifications ____________________________________________________ 13 ARTICLE VIII - PAY DIFFERENTIALS ____________________________________ 13 Section 1. Paramedic Differential. _____________________________________________ 13 Section 2. Haz Mat Differential. _______________________________________________ 13 Section 3. Fire Inspector Differential. __________________________________________ 13 Section 4. EMT Differential. __________________________________________________ 14 Section 5. Bilingual Pay _____________________________________________________ 14 ARTICLE IX - HOLIDAYS ______________________________________________ 14 Section 1. Named Holidays. __________________________________________________ 14 Section 2. Conditions. ______________________________________________________ 15 ARTICLE X - OVERTIME COMPENSATION _______________________________ 15 Section 1. Compensation. ___________________________________________________ 15 3 ARTICLE XI - APPARATUS STAFFING ___________________________________ 16 ARTICLE XII - FIRE DEPARTMENT PROGRAMS ___________________________ 16 Section 1. Programs. _______________________________________________________ 16 ARTICLE XIII - WORK ASSIGNMENTS AND TRANSFERS ___________________ 16 Section 1. Shipouts. _______________________________________________________ 17 Section 2. Vacation Relief Positions. ___________________________________________ 17 Section 3. Transfer Requests. ________________________________________________ 17 Section 4. Special Assignments. ______________________________________________ 18 Section 5. Continuous Hourly Service. __________________________________________ 18 ARTICLE XIV - TRAINING COORDINATION _______________________________ 18 Section 1.Coordination ______________________________________________________ 18 ARTICLE XV - PARAMEDIC ASSIGNMENT _______________________________ 18 Section 1. Limit of Eligibility. __________________________________________________ 18 Section 2. Additional Candidate Training. _______________________________________ 18 Section 3. Incentives. _______________________________________________________ 18 Section 4. Proctoring. _______________________________________________________ 18 Section 5. Field Training Stipend. _____________________________________________ 19 ARTICLE XVI - PROMOTION ___________________________________________ 19 Section 1. Promotion Step Level. ______________________________________________ 19 Section 2. Promotion Process Information. ______________________________________ 19 ARTICLE XVII - REDUCTION IN FORCE __________________________________ 20 Section 1. Order of Reduction. ________________________________________________ 20 ARTICLE XVIII - SELECTIVE CALL BACK WITH REGARD TO RESIDENCY _____ 20 Section 1. In Case of Emergency ______________________________________________ 20 ARTICLE XIX - HEALTH BENEFITS ______________________________________ 20 Section 1. Maintenance of Levels _____________________________________________ 20 Section 2. Vision Care. ______________________________________________________ 20 Section 3. PEMHCA Health Plan. _____________________________________________ 20 c. Alternate Medical Benefit Program. __________________________________ 22 ARTICLE XX - DENTAL BENEFITS ______________________________________ 24 Section 1. Level of Benefits. __________________________________________________ 24 Section 2. Premiums. _______________________________________________________ 24 ARTICLE XXI - LIFE INSURANCE _______________________________________ 24 Section 1. Premiums. _______________________________________________________ 24 ARTICLE XXII - RETIREMENT BENEFITS _________________________________ 24 Section 1. PERS Retirement Formula. __________________________________________ 24 4 Section 2. PERS Member Contribution. ________________________________________ 25 Section 3. Additional Employee PERS contributions _______________________________ 25 Section 4. Option 2 Death Benefit. _____________________________________________ 26 Section 5. Military Service Credit. _____________________________________________ 26 Section 6. 1959 Survivor Benefit. _____________________________________________ 26 Section 7. Employer Contributions to 457 Plan ___________________________________ 26 ARTICLE XXIII - RETIREMENT MEDICAL PLAN ___________________________ 27 Section 1. Retiree medical coverage for Unit employees hired before January 1, 2004: ____ 27 Section 2. 20-Year Vesting for Retiree Medical Coverage for Unit Employees Hired On Or After January 1, 2004: ____________________________________________________ 27 ARTICLE XXIV - DEPENDENT CARE ASSISTANCE PROGRAM (DCAP) ________ 27 Section 1. DCAP. __________________________________________________________ 27 ARTICLE XXV - VACATION ACCRUAL ___________________________________ 27 Section 1. Accrual Rate. _____________________________________________________ 27 Section 2. Unused At Termination. _____________________________________________ 28 Section 3. Limits. __________________________________________________________ 28 ARTICLE XXVI - USE OF VACATION ____________________________________ 28 Section 1. Maximum Number of Slots __________________________________________ 28 Section 2. Approvals. _______________________________________________________ 28 Section 3. Vacation Pay. ____________________________________________________ 28 Section 4. Illness on Vacation. ________________________________________________ 29 Section 5. When to be Taken. ________________________________________________ 29 Section 6. Limitation on Use. _________________________________________________ 29 Section 7. Waiting Period. ___________________________________________________ 29 Section 8. Double Compensation Prohibited. _____________________________________ 29 Section 9. Cash out Option. __________________________________________________ 29 ARTICLE XXVII - SICK LEAVE __________________________________________ 29 Section 1. Statement of Policy. _______________________________________________ 29 Section 2. Eligibility ________________________________________________________ 29 Section 3. Accrual. _________________________________________________________ 29 Section 4. Accumulation. ____________________________________________________ 29 Section 5. Use. ____________________________________________________________ 29 Section 6. Depletion of Sick Leave Benefits. _____________________________________ 30 Section 7. Forfeiture Upon Termination. ________________________________________ 30 Section 8. Payment for Accumulated Sick Leave. _________________________________ 30 Section 9. Personal Business Leave Chargeable to Sick Leave. ______________________ 31 5 Section 10. Return to Work or Continue Work With Limited Duty. _____________________ 31 ARTICLE XXVIII - SUBPOENAS _________________________________________ 31 ARTICLE XXIX - WORKERS' COMPENSATION ____________________________ 31 Section 1. Status Reporting While on Disability. __________________________________ 31 ARTICLE XXX - PHYSICAL FITNESS MEDICAL EXAMINATIONS ______________ 31 ARTICLE XXXI- LEAVES OF ABSENCE WITHOUT PAY _____________________ 32 Section 1. Disability. ________________________________________________________ 32 Section 2. Other Leaves. ____________________________________________________ 32 Section 3. Accrued Vacation Credits. ___________________________________________ 32 Section 4. Approval of Department Head ________________________________________ 32 Section 5. Approval by City Manager. __________________________________________ 32 Section 6. Absence Without Leave. ____________________________________________ 32 Section 7. Leave of Absence; Death Outside the Immediate Family. __________________ 32 Section 8. Military Leave of Absence ___________________________________________ 32 Section 9. Use of paid accruals while on leave. ___________________________________ 32 ARTICLE XXXII - LEAVES OF ABSENCE WITH PAY ________________________ 33 Section 1. City Manager Granted Leaves. _______________________________________ 33 Section 2. Council Granted Leave. _____________________________________________ 33 Section 3. Employee's Time Off to Vote. ________________________________________ 33 Section 4. Leaves of Absence; Death in Immediate Family. _________________________ 33 Section 5. Jury Duty; Leave of Absence. ________________________________________ 33 ARTICLE XXXIII – VOLUNTEER LEAVE PROGRAM ________________________ 33 ARTICLE XXXIV- TUITION REIMBURSEMENT _____________________________ 35 Section 1. Options. _________________________________________________________ 35 ARTICLE XXXV - PER DIEM TRAVEL EXPENSES __________________________ 35 Section 1. City Business. ____________________________________________________ 35 ARTICLE XXXVI - HOUSE FUND ITEMS __________________________________ 35 Section 1. Station House Fund. _______________________________________________ 35 Section 2. Non-Food House Items _____________________________________________ 35 ARTICLE XXXVII - PARKING ___________________________________________ 35 Section 1. Entitlements. _____________________________________________________ 35 ARTICLE XXXVIII- GRIEVANCES _______________________________________ 36 Step II ___________________________________________________________________ 37 Step III __________________________________________________________________ 37 Step IV __________________________________________________________________ 37 ARTICLE XXXIX- SAFETY COMMITTEE __________________________________ 38 6 Section 1. Committee _______________________________________________________ 38 ARTICLE XL – MISCELLANEOUS _______________________________________ 38 Section 1. T-Shirts. _________________________________________________________ 38 Section 2. Removal of Disciplinary Actions. ______________________________________ 38 ARTICLE XLI - FULL UNDERSTANDING _________________________________ 38 Section 1. Full and Entire Understanding ________________________________________ 38 Section 2. Fair Labor Standards Act. ___________________________________________ 38 Section 3. Severability. ______________________________________________________ 38 Section 4. Good Faith. ______________________________________________________ 39 Section 5. Merit System Rules and Regulations. __________________________________ 39 Section 6. Station Consolidation or Relocation ___________________________________ 39 Section 7. Meet and Confer. __________________________________________________ 39 ARTICLE XLII – 48/96 Work Schedule ___________________________________ 39 ARTICLE XLIII – FUTURE SERVICE DELIVERY MODELS ____________________ 40 ARTICLE XLIV - DURATION ____________________________________________ 40 APPENDIX A ________________________________________________________ 42 APPENDIX B ________________________________________________________ 51 7 MEMORANDUM OF AGREEMENT CITY OF PAL0 ALTO and I.A.F.F. LOCAL 1319 July October 1, 201814 - June 30, 202118 PREAMBLE This Memorandum of Agreement between the City of Palo Alto, hereinafter referred to as the "City", and Local 1319, International Association of Fire Fighters, hereinafter referred as the "Union", has been prepared and entered into in accordance with Title I, Division 4, Chapter 10, Sections 3500-3510 of the California Government Code and Chapter 12 of the City of Palo Alto Merit System Rules and Regulations. ARTICLE I - RECOGNITION Section 1. Recognition. The City recognizes the Union as the exclusive representative of an employee group consisting solely of the classifications of Fire Apparatus Operator, Fire Fighter, Fire Captain, Fire Captain (forty-hour assignment), Fire Inspector, Hazardous Materials Specialist, and Hazmat Inspector, who are regularly employed by the City and others as amended into the representation unit from time to time under existing law and the Merit System Rules and Regulations. ARTICLE II - NO DISCRIMINATION Section 1. No Discrimination. The Union and the City hereby agree that there shall be no discrimination because of race, color, age, disability, sex, national origin, sexual orientation, political or religious affiliation under this Agreement. There shall be no discrimination in employment conditions or treatment of employees on the basis of membership or non-membership in the Union, or participation in the lawful activities of the Union. Section 2. Free Choice. The Union and the City hereby 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. Section 3. Human Relations Committee. A Human Relations Committee will include up to five members appointed by the Union executive board and at least two members of management with representation from the Fire and Human Resources Departments. The committee may make recommendations to management regarding recruitment outreach, equal employment opportunity and career development programs. ARTICLE III - PAYROLL DEDUCTIONS – AGENCY SHOP 8 Section 1. Payroll Deductions and Written Authorization. The City shall deduct Union membership dues assessments and insurances authorized by the Union. and pay other mutually agreed uponThis will be accomplished by payroll deduction from the bi-weekly pay of member employees. The dues deduction must be authorized in writing by the employee on an Union authorization card acceptable to the City and the Union. The Union will be the custodian of records for individual employee membership and dues deduction forms. The Union will maintain authorizations for dues deduction, signed by the individual from whose salary or wages the deduction or reduction is to be made. The City will direct employee requests to cancel or change deductions to the Union. The City shall remit the deducted dues to the Union as soon as possible after deduction. All Union members on payroll deduction for payment of Union dues as of 5:00 p.m. on the tenth day following signing of this Memorandum of Agreement must remain on payroll deduction for the life of the Memorandum of Agreement, or so long as they remain members of the representation unit. Union members who establish dues payroll deduction during the term of the Memorandum of Agreement must remain on payroll deduction for the life of the Memorandum of Understanding, or so long as they remain members of the representation unit. Union members on dues payroll deduction may declare their intention to terminate such payroll deduction following expiration of this Memorandum of Agreement during the thirty-day period between sixty and ninety days prior to expiration of the Memorandum of Agreement. Section 2. Agency ShopCertification of Union Membership. The Union agrees to provide the City an initial certified list of members and statement that the Union has and will maintain written authorizations signed by the individuals from whose wages the Union dues deductions are to be made. From that point forward the Union will update the list whenever there are changes. Pursuant to legislation enacted by SB 739 and amendment to the Meyers-Milias-Brown Act, the City and the Union agree to abide by the following provisions as they relate to an agency shop and an agency shop election. Section 3. Indemnification. Agency Shop as defined under Meyers-Milias Brown means “an arrangement that requires an employee, as a condition of continued employment, either to join the recognized employee organization, or to pay the organization a service fee in an amount not to exceed the standard initiation fee, periodic dues, and general assessments of the organization.” The City and the Union agree that an agency shop arrangement between the City and the Union shall be placed in effect upon ratification of this agreement. Any employee who is a member of a bona fide religion, body, or sect that has historically held conscientious objections to joining or financially supporting public employee organizations shall not be required to join or financially support any public employee organization as a condition of employment. The employee may be required, 9 in lieu of periodic dues, initiation fees, or agency fees, to pay sums equal to the dues, initiation fees, or agency fees to a nonreligious, nonlabor charitable fund exempt from taxation under Section 501(c)(3) of the Internal Revenue Code, chosen by the employee from a list of at least three organizations, or if the memorandum of understanding between the City and the Union fails to designate the funds, then to any such fund chosen by the employee. Proof of the payments shall be made on a monthly basis to the City as a condition of continued exemption from the requirement of financial support to the Union. Covered employees shall execute written authorization for either Union dues deductions, the agency fee, or, if eligible, the charitable contribution. In the absence of a written authorization the City shall deduct the agency fee from the employees’ paycheck. If implemented, an agency shop provision may be rescinded by a majority vote of all the employees in the unit covered by the Memorandum of Understanding pursuant to the Meyers-Milias-Brown Act. The Union shall keep an adequate itemized record of its financial transactions and shall make available annually, to the City and to the employees who are members of the organization, within 60 days after the end of its fiscal year, a detailed written financial report thereof in the form of a balance sheet and an opening statement, certified as to accuracy by its president and treasurer or corresponding principal officer, or a certified public accountant. The Union shall indemnify and hold the City harmless against any liability arising from any claims, demands, or other action relating to this article.e City’s compliance with the agency shop obligation. The Union shall comply with all statutory and legal requirements with respect to Agency Shopthis article. ARTICLE IV - UNION ACTIVITIES Section 1. On-Duty Time. Local 1319 officers may use a reasonable amount of on- duty time to attend to Union business specifically related to representation of employees so long as: a. Staffing is available b. Operations are not interrupted c. Advance approval is obtained from the Battalion Chief or Operations Chief Section 2. Interoffice Mail, Bulletin Boards, and E-Mail. The Union shall have access to interoffice mail and existing bulletin boards in unit employee work areas for the purpose of posting, transmitting, or distributing notice or announcements including notices of social events, recreational events, Union membership meetings, result of elections and reports of minutes of Union meetings. Any other material must have prior approval of the Operations Chief or Fire Chief. Action on approval will be taken within 10 24 hours of submission. The Union may send e-mail messages only for the purposes set forth above. The I.T. Division will maintain the IAFF list. The Union access to e-mail is based on the following conditions: a. E-Mails to the IAFF list will be copied to the Fire Chief or Operations Chief at distribution. b. E-Mails to the IAFF list will only be sent by the Executive Board Members. Section 3. Use of Meeting Places. The Union shall have the right to reserve City meeting and conference rooms for use during non-working hours or as subject to Battalion Chief approval. Such meeting places will be made available in conformity with City regulations and subject to the limitations of prior commitment. ARTICLE V - NO STRIKES Section 1. No Strikes. The Union, its representatives, or members, shall not engage in or cause, instigate, encourage, sanction, or condone a strike, withholding of services, leave of absence abuse, work stoppage or work slowdown of any kind against the City of Palo Alto or its citizens by employees covered under this Agreement. No employee shall refuse to cross any picket line in the conduct of Fire Department business, nor shall the Union, its representatives or members discriminate in any way toward anyone who refuses to participate in a strike, or any of the job actions cited above. ARTICLE VI - PROBATIONARY PERIOD Section 1. Tentative and Subject to Probationary Period. All original appointments to regular or part-time municipal service positions shall be tentative and subject to a probationary period, . This probationary period shall include the fire training academy and an additional fourteen (14) months after completion of the academy, excluding time off for extended leaves of absence. fixed by the appointing authority at the time of appointment, or sixteen (16) months. Section 2. Part of Testing Process. The probationary period shall be regarded as part of the testing process and shall be utilized for closely observing all aspects of the employee's qualifications, for ensuring the effective adjustment of a new employee to the position and for rejecting any probationary employee who, in the opinion of management, is not suitable to attain permanent status. Section 3. Suspension or Termination. During the probationary period a new employee may be suspended or terminated at any time by the appointing authority without cause and without right of appeal or to submit a grievance. Said employee shall not have the right to proceed to arbitration on the issue of arbitrability or on the 11 issue of its constitutional or discovery rights, nor those of any employee by reason of the foregoing. The Union shall not be a party to any lawsuit relating to the termination of a probationary employee. ARTICLE VII - SALARY PROVISIONS Section 1. Base Wage Rates. a. The base wage rates of bargaining unit classifications will be as set forth in Appendix A of this MOA. b. Base Salary: Effective the first full pay period following Council adoption, a three percent (3%) salary increase will be applied to the salary ranges for all represented classes. c. Market Increase: Effective the first full pay period following Council adoption, a two and a half percent (2.5%) salary increase will be applied to the salary ranges for all represented classes. d. Base Salary: Effective the first full pay period following July 1, 2019, a three percent (3%) salary increase will be applied to the salary ranges for all represented classes. e. Base Salary: Effective the first full pay period following July 1, 2020, a three percent (3%) salary increase will be applied to the salary ranges for all represented classes. a. Effective the full pay period following City Council approval, a 2.5% general salary increase and a 5% market adjustment will be applied to the salary ranges of all represented classes. Effective with the pay period including June 30, 2016 a 2.5% general salary increase and a 8% market adjustment will be applied to the salary ranges of all represented classes. Effective with the pay period including June 30, 2017 a 2.5% percent general salary increase will be applied to the salary ranges of all represented classes. Total Compensation Market Study. The City will conduct a total compensation survey by November 2017 using the criteria listed below (Total Compensation and Survey Database). Data shall include the contributions in effect up until the November 2017 period. If the City’s survey shows that the Fire Fighter benchmark based on the median is under the market median, the City shall confer a market adjustment to place the benchmark to the median of market, up to a cap of two and a half percent (2.5%), effective the last pay period in December 2017. Total Compensation and Survey Database 12 Management and the Union have agreed to a compensation survey database structure. Survey Cities include: Alameda, Berkeley, Fremont, Hayward, Menlo Park Fire District, Milpitas, Mountain View, Redwood City, Pleasanton, San Jose, San Mateo, San Ramon Fire District, Santa Clara, Santa Clara County and South San Francisco. Compensation Criteria includes: top step salary, maximum longevity, maximum education, uniform allowance, EMT differential, Hazmat differential, deferred compensation, employee pick up of employer pension costs (Negative EPMC), and maximum City paid benefits (medical, dental, vision, life insurance, LTD, and EAP). 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. Section 2. Out-of-Class Compensation. All represented employees who are assigned work in a higher classification for longer than four (4) continuous hours will be compensated at a higher pay rate for all hours worked during the out-of-class assignment. This provision applies as follows: Fire Fighter, Apparatus Operator, Captain or Inspector working in a higher classification: Step to step. Representation unit classification working as a Battalion Chief, 10% above 5th-Step Captain, but not to exceed 93% of Battalion Chief control point. Representation unit classification working in any other management position, within the range of the management position. In accordance with Government Code 20480, an employee assigned to work in an “out-of-class appointment” may not exceed 960 hours worked in the appointment within a fiscal year if the employee is appointed to an upgraded position or higher classification that is vacant during recruitment for a permanent appointment. This limitation does not apply to a position that is temporarily available due to a leave of absence. Section 3. Pay for Court Appearance. Sworn Fire personnel appearing in court for the People shall be compensated as follows: Period Rate Minimum a. Appearance on scheduled day off Time and one-half at 40-hour rate 4 hours b. Any or all court time during scheduled shift Straight time during shift at 56-hour rate None c. Appearance on scheduled Time and one-half at 2 hours 13 work day but not during scheduled shift 40-hour rate (2 hour minimum, may not run into shift time) The employee shall remit all fees received for such appearances to the City within thirty days from the termination of his/her services. Compensation for mileage or subsistence allowance shall not be considered as a fee and shall be retained by the employee. Section 4. Classifications. The Haz Mat Inspector position will be paid at the same level as the Fire Inspector (603). One Fire Captain position will be assigned to a Fire Captain (Forty-hour Assignment) with the pay set at 5% above the Fire Captain. ARTICLE VIII - PAY DIFFERENTIALS Unit employees are eligible for the following pay differentials. Notwithstanding any provision of this agreement, total differential pay shall not exceed seventeen and a half percent (17.5%). Section 1. Paramedic Differential. Paramedics who have completed the required training and have been accredited in accordance with the program and possess their paramedic license, will receive a 12.5% differential in addition to their base salary effective beginning with the date of assignment to rotational Paramedic duty. The Paramedic salary differential will terminate with the cessation of assignment to rotational Paramedic duty. Employees assigned to work as an Acting Captain, as described in Article VII, Section 2 above, shall not be eligible to receive the paramedic differential unless the Acting Captain is the only paramedic staffing the apparatus during their Acting Captain assignment. On or before 09/28/2015, employees Y-rated and those who have submitted their letters to Y-rate will be Y-rated. Section 2. Haz Mat Differential. A maximum of fifteen positions who are Haz Mat trained and certified will receive a 5% differential in addition to their base salary. This differential does not apply to minimum staffing replacements. Section 3. Fire Inspector Differential. Fire inspector personnel including Haz Mat inspectors and Haz Mat specialists who have been trained as fire investigators and who are regularly assigned to fire investigation duties by the Chief shall be compensated with premium pay in the amount of $500 per month. The Chief reserves the right to determine who is regularly assigned to such duties. 14 Section 4. EMT Differential. Effective the first full pay period after adoption of the successor MOU, the City shall roll tThe former 3% EMT differential pay into was rolled into the base pay . After this one time conversion is added to base pay, this shall constitutinge the City’s incentive payment for EMT skills. This conversion shall be cost neutral during the term of this MOU. In the event an employee’s EMT certification expires, the employee will be taken off the line and placed in an unpaid status until the employee can submit proof of EMT recertification. Section 5. Bilingual Pay Employees who have successfully demonstrated proficiency in any of the approved languages shall receive a 5% premium in addition to their base salary. a. Approved Languages: Spanish, Chinese (Mandarin and Cantonese), Japanese, Tagalog, Korean, Vietnamese, Russian, American Sign Language, and such other languages as determined by management. b. Proficiency Requirements The City shall develop and provide a method of testing for proficiency in the above listed languages. The City will pay for the first test in any approved language however subsequent testing will be at the employee’s own expense. An employee must pass the proficiency test to maintain the bilingual pay. The Fire Chief shall have the authority to require employees receiving bilingual pay to re-certify with the Human Resources Department as necessary and reasonable. c. Arbitratability The City’s substantive evaluation of an employee’s knowledge of and skills in a designated second language shall not be subject to the grievance procedure or review by an arbitrator. ARTICLE IX - HOLIDAYS Section 1. Named Holidays. The following holidays are recognized as municipal holidays for pay purposes, and regular, employees shall have these days off with pay, except as otherwise provided in these rules: January 1 Veterans’ Day, November 11 Third Monday in January Thanksgiving Day 15 Third Monday in February Day after Thanksgiving Day Last Monday in May December 25 July 4th Either December 24, or December 31 as provided below First Monday in September Second Monday in October 149.5 hours is the total amount of holiday hours paid annually to an employee divided by 26 payroll periods which equals 5.75. Shift personnel shall receive pay in lieu of taking paid leave for accrued holidays. Such paid hours are in addition to the normal biweekly base pay. Shift personnel will accumulate a biweekly amount of 5.75 hours. Hours are prorated and accrued based on hours actually worked. If employees elect to be paid for these hours at any time before the scheduled payoff, they must make sure they have sufficient hours in their Holiday account and record the hours on their timecard in the total columns of the timecard only. Accrued Holiday balances will be automatically paid off in the months of June and December. Section 2. Conditions. a. Personnel assigned to a 40-hour work schedule will receive paid holidays in accordance with Sections 517 and 518 of the Merit System Rules and Regulations. b. Personnel assigned to a 40-hour work schedule will receive floating days off with pay in each of the following months: August, September, March, April, and June. The following conditions will hold: (1) Management will designate the schedule of the paid day off under this section at least thirty days in advance. (2) 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 day will be added to the employee's vacation accrual. (3) 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 X - OVERTIME COMPENSATION Section 1. Compensation. Shift personnel assigned to overtime relief duty in addition to their regular 56-hour shift schedule shall receive overtime compensation at a rate of 16 one and one-half times the employee's basic 56-hour rate, or out-of-class rate if such applies, for all hours of the relief duty shift. Required off-duty training will be compensated at the rate of one and one-half times the basic 40-hour rate or as otherwise agreed. Emergency callback will be compensated at a rate of one and one- half times the basic 40-hour rate to a maximum of 8 hours, and at a rate of one and one-half times the basic 56-hour rate for those hours in excess of 8 hours. Overtime duty assignments will first be made from the voluntary overtime list. If such assignments cannot be filled from the voluntary overtime list, the vacant position will be filled by moving up on-shift personnel through out-of class assignment. Any remaining vacancy will then be filled by overtime duty assignment made in reverse order of hire date seniority according to specialty and qualifications required to be assigned. The overtime duty assignment seniority list will be adjusted annually on October 31. ARTICLE XI - APPARATUS STAFFING Engine, truck and combination rescue companies shall be deployed for emergency services purposes at the level of one Fire Captain, one Fire Apparatus Operator and one Fire Fighter. Truck companies have the option of deploying at the level of two Fire Apparatus Operators instead of one Fire Apparatus Operator and one Firefighter. This option shall be determined by seniority. Paramedic ambulance staffing shall be two personnel; the City will dispatch personnel on Emergency Medical Service calls such that a minimum of 1 licensed paramedic responds. The Foothill Fire Station #8, when activated by the Fire Chief, shall be staffed with a minimum of one Fire Apparatus Operator and one Fire Fighter. City may dispatch a two-person quick response vehicle with a minimum of 1 paramedic. ARTICLE XII - FIRE DEPARTMENT PROGRAMS Section 1. Programs. The Union agrees to continue its cooperation and participation in existing weather station and community blood pressure screening and measurement programs. ARTICLE XIII - WORK ASSIGNMENTS AND TRANSFERS It is the intent of the Palo Alto Fire Administration and Local 1319 that work assignments and transfers will reflect the best interests of the Fire Department and the City. The Fire Department will maintain a constant state of readiness to defend against fire and other disasters. It is therefore imperative that all Fire Department divisions assign personnel in the best manner to respond to the needs of the City and the Department. It is also acknowledged that the Fire Chief is responsible to make and/or approve the work assignments or transfers of Fire Department personnel. The Fire Chief or designee will maintain a four-year station and shift assignment, 17 seniority-based bid system covering the following classifications within Fire Operations on a rotational basis: Fire Captain, Apparatus Operator and Fire Fighter. The Fire Chief, or his designee, shall initiate personnel assignments and transfers to balance platoon or division strength, fill permanent or temporary vacancies and provide required training to individual personnel. Such assignments will be based on seniority, except where career development, training, special assignments, skills and documented performance issues are specifically identified in writing, management may make assignments based on such issues. For purposes of this article, seniority shall be computed from the date of entry into the current classification. Section 1. Shipouts. When possible, least senior Fire Fighters will be given short term or shipout relief duty. In order to maintain training continuity, shipouts of probationary personnel will not be permitted during the first three-month training cycle. Probationary fire fighters will be assigned to Stations 1, 2, 3, 4, 5, or 6 during their probationary period, filling vacancies first, when possible. Upon completion of the first three-month training cycle, the probationary fire fighter will be eligible for short term or shipout relief duty. If after completion of the first three-month training cycle, a probationary employee fails any monthly testing process, or is the subject of identified training needs, the probationary employee will be removed from short term or shipout relief duty for a 60-day period. Section 2. Vacation Relief Positions. In order that platoon strengths can be balanced more quickly and to reduce the need for excess overtime, two positions will be designated for vacation relief. These positions will be the lowest two on the Department seniority list who have completed their probationary period. a. The vacation relief persons will be assigned to one station when not on relief assignment. b. Relief assignment can be made to any Station or shift where a shortage of personnel will cause unnecessary overtime. c. Shortages may be caused by vacation, sick leave, disability or any leave of absence that causes a shift to be short of personnel while another has a surplus. d. Shift transfers will be made so as not to cause the relief person to work more than the prescribed number of hours in the prescribed period. e. Relief assignments will be made and hours will be coordinated by the Battalion Chief's office. Section 3. Transfer Requests. Non-probationary fire personnel may submit transfer requests to their immediate supervisor to be forwarded to the appropriate chief officer. Providing that Departmental needs are satisfied, such transfers will be administered using first a mutually agreeable exchange, secondly seniority. 18 The transfer requests shall remain on file during the year and may be granted when a vacancy occurs, providing the requesting employee possesses the experience and performance ability required to fill the vacancy. Section 4. Special Assignments. Management reserves the right to assign personnel to career development opportunities, special projects, seminars, programs and selected educational and/or training courses, based on Fire Department needs and the performance of the employee. Section 5. Continuous Hourly Service. Continuous hours of service in excess of 72 hours are subject to approval by the Fire Chief or designee. Approval may be granted when an employee has not been engaged in a greater than usual level of activity or is not fatigued. ARTICLE XIV - TRAINING COORDINATION Section 1.Coordination. Three shift employees per platoon may be assigned to assist the Training Officer in the coordination, preparation and scheduling of the training program. It is agreed that volunteers will first be sought for such assignment, and further agreed that the details of this section shall be established by mutual agreement between the Fire Chief and the Union. ARTICLE XV - PARAMEDIC ASSIGNMENT Section 1. Limit of Eligibility. The City reserves the right to limit eligibility for the Paramedic Program to the Fire Fighter classification. The City may, at its discretion, add other classifications within the represented bargaining unit to meet the need of program changes. Differentials for other classifications will be as provided in Article VIII, Section 1. Section 2. Additional Candidate Training. As the Program progresses, Management will assess the need for training additional Paramedic candidates. It is Management's intention to provide for such additional training as necessary for Program continuity. Section 3. Incentives. Paramedics will receive a one-time cash payment of $500 for each biennial recertification. This provision applies only to active incumbents of authorized paramedic positions who remain in the paramedic assignment for at least one additional year after recertification. The one year requirement after recertification does not apply to those paramedics who may leave the program because of work- related injury or illness, or promotion, nor does it apply when a paramedic is asked by management to recertify in order to voluntarily extend their paramedic service to meet special departmental needs for a period of less than one year. Section 4. Proctoring. Paramedic proctoring assignments will be made by the Chief from among qualified volunteers. Payment of $600 will be made to the primary proctoring paramedic at the conclusion of each proctoring assignment. 19 The Chief or his or her designee will maintain a list of qualified proctors from among volunteers. Personnel will be selected by the Fire Chief or his or her designee from the list to serve as paramedic proctors. If a conflict arises between the City and the Union regarding the Proctor Program, either side may suspend the program at the annual renewal period and shall remain suspended until a resolution or agreement is reached. Section 5. Field Training Stipend. Employees assigned to provide field training for new paramedic accreditation will receive a $300 stipend to train a new paramedic to successful completion of paramedic accreditation. This assignment is at the discretion of the Chief or their designee. ARTICLE XVI - FIRE FIGHTER APPRENTICE PROGRAM Section 1. Implementation. The Union agrees to assist the City in the implementation of an apprentice, training and equal employment opportunity program. Trainees under such programs shall be provided with all benefits, including retirement benefits, of other fire fighters except salary. Section 2. Beginning Fire Fighting Suppression Work. Employees hired under the apprentice training program may begin fire fighting suppression work after they have reached the Trainee II level. . Section 3. Testing Process. Local 1319 shall be represented and entitled to participate in all stages of the testing process, and representatives from Local 1319 shall make recommendations to the department concerning the qualifications of any apprentice. ARTICLE XVII - PROMOTION Section 1. Promotion Step Level. All regular promotions from classifications within the representation unit to the classification of Fire Captain will be made at the fifth step on the salary range. Section 2. Promotion Process Information. For promotions to positions within the representation unit, promotion process information will be available in the Human Resources Department office at the time of posting. Information will include applications, minimum qualifications, study material reference information, if appropriate, and information on passing scores. Any changes in an established testing process must be submitted in writing to the Union for review and input no fewer than 60 days prior to the beginning of the process. 20 ARTICLE XVIII - REDUCTION IN FORCE Section 1. Order of Reduction. If the work force is reduced (reduction in force) within a represented classification, unit employees having the shortest length of service with the Fire Department will be laid off first so long as employees retained are fully qualified, trained and capable of performing remaining work. ARTICLE XVIIIX - SELECTIVE CALL BACK WITH REGARD TO RESIDENCY Section 1. In Case of Emergency Management may use selective call back with regard to residency in cases of emergency. ARTICLE XIX - HEALTH BENEFITS Section 1. Maintenance of Levels Except as otherwise set forth herein, the City will maintain the present level of benefits on all City-sponsored medical programs. Section 2. Vision Care. The City offers vision care coverage for employees and dependents. Coverage is equivalent to $20 Deductible Plan A under the Vision Service Plan, with monthly premiums paid by the employer. Dependents include domestic partners, as defined under Article XX Section 3(b). Section 3. PEMHCA Health Plan. a. ACTIVE EMPLOYEES: During the term of this contract, the maximum City contribution towards medical premiums for eligible full time employees per employee category shall be up to a maximum of the following for any plan: Medical Premium Category PEMHCA Contribution* Total Maximum City Contribution (inclusive of PEMHCA contribution) effective from time of ratification through December 31, 2018 Total Maximum City Contribution (inclusive of PEMHCA contribution) effective January 1, 2019 Employee Only $133.00 $804 $840 Employee plus one $133.00 $1606 $1680 Employee Family $133.00 $2088 $2180 Medical PEMHCA Up to a Total Up to a Total Up to a Total Premium contribution* Maximum Maximum Maximum 21 Category City Contribution City Contribution City Effective January Effective January Contribution 1, 2016 1, 2017 Effective January 1, 2018 Employee $125.00 90% of monthly $773.00 $804.00 only premium for plan selected by employee Not to exceed 90% of the second most expensive plan premium Employee $125.00 90% of monthly $1,544.00 $1,606.00 plus one premium for plan selected by employee Not to exceed 90% of the second most expensive plan premium Employee $125.00 90% of monthly $2,008.00 $2,088.00 Family premium for plan selected by employee Not to exceed 90% of the second most expensive plan premium Effective with the first pay period including January 1, 2016, tThe City’s total maximum 22 contribution towards medical premiums for eligible part time employees shall be prorated based on the number of hours per week the part-time employee is assigned to work. *PEMHCA minimum changes per statutory determination as of 2016. Any increases to the PEMHCA minimum during the term of this contract will result in a corresponding decrease to the amount of the additional City contribution, so that the total maximum City contribution never exceeds the amount listed in the “Total Maximum City Contribution” columns described above. If the State of California or federal government requires the City to participate and contribute toward coverage under any medical plan outside of PEMHCA including but not limited to the Affordable Care Act, 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 parties will meet and confer over the impact of such change on matters within the scope of representation before implementing any change. b. Active employee domestic partners whose domestic partnership is registered with the State of California may add their domestic partner as a dependent to their elected health plan coverage if the domestic partner is registered with the Secretary of State. Active employee domestic partners whose domestic partnership is not registered with the State but 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 90% of the average monthly premium cost of individual coverage under the PEMHCA health plans in 2016. Effective with the first pay period including January 1, 2017, a stipend of two hundred eighty four ($284) per month toward the cost of an individual health plan will be provided. Evidence of premium payment will be required with request for reimbursement. c. Alternate Medical Benefit Program. For calendar year 2016, if a regular employee and/or the employee’s dependent(s) are enrolled in medical insurance through another employer- sponsored or association medical plan, the employee may opt for alternative medical insurance coverage through the other employer-sponsored or association plan and waives his/her right to the City of Palo Alto’s medical 23 insurance coverage for same individuals. Employees electing alternative coverage and no City coverage will receive cash payments of approximately half of the “averaged monthly City contribution toward premiums” for their medical insurance coverage. “Averaged monthly premiums” are the average of the Kaiser HMO, Blue Shield HMO and PERS Choice PPO premiums for the employee’s City medical coverage available through the Public Employee Retirement System (PERS). The monthly rates for 2016 are as follows: One party: $340.5 Two party: $681.0 Family: $885.3 Effective with the first pay period including January 1, 2017, iIf a regular employee and/or the employee’s dependent(s) are eligible for and elect to receive medical insurance through any non-City of Palo Alto sponsored or association medical plan, the employee may choose to waive his/her right to the City of Palo Alto’s medical insurance coverage and receive cash payments in the amount of two hundred and eighty four dollars ($284) for each month City coverage is waived. Examples of waivers eligible for this payment are: • Employee waives all applicable City medical coverage; or • Employee is eligible to enroll his or her spouse or domestic partner and waives medical coverage for the spouse or domestic partner; or • Employee has additional eligible dependents and waives family-level medical coverage. Participation must result in a health insurance cost savings to the City and payments per employee shall not exceed a total of two hundred eighty four dollars ($284) per month. To participate in the program the employee and dependents must be eligible for coverage under PEMHCA medical plans, complete a waiver of medical coverage form, and provide proof of eligible alternative medical coverage. Payments will be made in the employee’s paycheck beginning the first month following the employee’s completion of the waiver form. Payments are subject to state and federal taxes and are not considered earnings under PERS law. Employees are responsible for notifying the City of any change in status affecting eligibility for this program (for example, life changes affecting dependent’s eligibility for medical coverage through the employee) and will be responsible for repayment of amounts paid by the City contrary to the terms of this program due to the employee’s failure to notify the City of a change in 24 status. d. Dual Coverage. When a City employee is married to another City employee each shall be covered only once (as an individual or as a spouse of the other City employee, but not both) and dependent children, if any, shall be covered only by one spouse. ARTICLE XXI - DENTAL BENEFITS Section 1. Level of Benefits. The City will maintain the present level of benefits on the City-sponsored dental program. Maximum benefits per calendar year shall be $2,000. Section 2. Premiums. The City shall pay all premium payments or equivalent self- insured program charges on behalf of employees and dependents who are eligible and enrolled for coverage under the existing dental plan. Dependents will include domestic partners, as defined under Article XX, Section 3(b). Section 3. Orthodontia Benefit Maximum. The City will provide a 50% of reasonable charges, $2,000 lifetime maximum orthodontic benefit for representation unit employees and their dependents. ARTICLE XXII - LIFE INSURANCE Section 1. Premiums. The City currently pays the following amounts of premium on behalf of Fire personnel: Per Pay Period Per Month (Approx.) Basic Life Insurance and Basic ADD $.085 $ .185 (per $1,000 of coverage) The basic life insurance provided by the City shall equal the employee’s base monthly salary multiplied by twelve. ARTICLE XXIII - RETIREMENT BENEFITS Section 1. PERS Retirement Formula. Safety Pension Group A: 3%@50 Safety Retirement 25 The City will continue the present benefits under the Public Employees' Retirement System (PERS) "3 percent at 50 (3%@50)" formula for employees hired before the effective date of the “3 percent at 55” (3%@55) formula for new hires as described herein. The final year compensation for employees hired under the 3% at 50 formula will continue to be “Single highest year” or the highest average annual compensation earnable by the member during one (1) year of employment immediately preceding retirement or the one-year period otherwise designated by the member (Government Code section 20042). Safety Pension Group B: 3%@55 Safety Retirement Effective December 7, 2012, the City amended its contract with CalPERS to provide employees hired on or after that date who are not “new members” of CalPERS, as defined in the Public Employees’ Pension Reform Act (often referred to as “classic” CalPERS members) with the CalPERS retirement formula three percent of final salary at age 55 (“3%@55”), with the final salary determination for such employees of “3 highest consecutive years” based on the highest average annual compensation earnable by the member during three (3) consecutive years of employment immediately preceding retirement or the three-year period otherwise designated by the member (Government Code section 20037). Safety Pension Group C: 2.7% at Age 57 Safety Retirement Employees hired on or after January 1, 2013 meeting the definition of “new member” under the Public Employees’ Pension Reform Act (Gov’t. Code s. 7522 et seq.) shall be subject to all of the provisions of that law, including but not limited to the two point seven percent at age 57 (2.7%@57) retirement formula with a three year final compensation period. Section 2. PERS Member Contribution. a. Employees in all represented classes in Pension Groups A and B described above will make the 9% PERS member contributions by payroll deduction b. Employees in all represented classes in Pension Group C described above shall pay the employee contribution required by the Public Employees’ Pension Reform Act, currently calculated at fifty percent (50%) of the normal cost. c. When employees pay their PERS Member Contribution pursuant to section 3a and 3b above, the City will provide for member contributions to be made as allowed under provisions of IRS Code Section 414(h)(2). Section 3. Additional Employee PERS contributions In addition to the PERS member contribution as required under section 2. a, b and 26 c above, all employees in pension groups a, b and c shall contribute the additional following contributions: a. Effective as soon as administratively possible all employees regardless of pension formula in this unit shall, iIn addition to the Member Contribution required per CalPERS 20516 contract amendment all employees regardless of pension formula in this unit shall pay an additional 13% towards the Employer share of Pension. b. Effective the first full pay period following July 1, 2020, all employees regardless of pension formula in this unit shall, in addition to the Member Contribution required, pay an additional 1% towards the employer share of Pension for a total of 4%. Effective as soon as administratively possible but no sooner than the pay period that includes June 30, 2017, all employees regardless of pension formula in this unit shall, in addition to the Member Contribution required, pay an additional 1% towards the Employer share of Pension for a total of 3%. Such contributions under CalPERS 20516 will be provided on a pre-tax basis to the extent allowable by law. Section 4. Option 2 Death Benefit. The City provides the Pre-Retirement Option Settlement 2 Death Benefit. The Pre-Retirement Optional Settlement 2 Death Benefit provides the spouse of a deceased member, who was eligible to retire for service at the time of death, with an alternate option to the lump sum Basic Death Benefit whereby the surviving spouse can elect a monthly allowance equal to the amount the member would receive if he/she had retired from service on the date of death and elected Optional Settlement 2 (the highest monthly allowance a member can leave a spouse). Section 5. Military Service Credit. The City will provide the Public Employees’ Retirement System benefit known as “Section 20930.3, Military Service Credit as Public Service.” Section 6. 1959 Survivor Benefit. The City will continue to provide the basic level of 1959 PERS Survivor Benefit to eligible employees in accordance with Government Code section 21571. Section 7. Employer Contributions to 457 Plan Effective the first full pay period following July 1, 2020, the City will contribute the equivalent of 1% of the employee’s pensionable salary into the 457 plan. Eligibility: a. Employees must be enrolled in an eligible City sponsored 457 plan b. Employees who reach the maximum as defined by the IRS will not receive additional contributions c. Employee must be making PERS contributions 27 ARTICLE XXIVII - RETIREMENT MEDICAL PLAN Section 1. Retiree medical coverage for Unit employees hired before January 1, 2004: Monthly City-paid premium contributions for a retiree-selected PEMHCA optional plan will be made in accordance with the Public Employees' Medical and Hospital Care Act Resolution for employees that retire on or before December 31, 2006. Effective January 1, 2007 for an employee retiring on or after that date the City will pay up to the monthly medical premium for the 2nd most expensive plan offered to IAFF employees among the existing array of plans. However, the City contribution for an employee hired before January 1, 2004 who retires on or after December 1, 2011 shall be the same contribution amount it makes for active City employees. Effective upon ratification and adoption of this Agreement, the City shall provide active unit employees who were hired before January 1, 2004 with a one-time opportunity to opt-in to retiree health benefits provided under California Government Code section 22893. Eligible employees who wish to exercise this option shall inform the People, Strategy, and Operations department of their election in writing no later than 90 days following the ratification and adoption of this Agreement. Section 2. 20-Year Vesting for Retiree Medical Coverage for Unit Employees Hired On Or After January 1, 2004: a) The retiree health benefit provided in California Government Code section 22893 shall apply to all employees hired on or after January 1, 2004. Under this law, an employee is eligible to receive Fifty (50) percent of benefit after ten (10) years; each additional service credit year after Ten (10) years will increase employer credit by Five (5%) percent until Twenty (20) years is reached at which time employee is eligible for One Hundred (100%) percent of annuitant- only coverage and Ninety (90%) percent of the additional premium for dependents. ARTICLE XXIV - DEPENDENT CARE ASSISTANCE PROGRAM (DCAP) Section 1. DCAP. The City will provide a dependent care assistance program for employees subject to the provisions of applicable law. The program will remain in effect subject to a reasonable minimum participation level and availability of third party administrative services at a reasonable cost. ARTICLE XXVI - VACATION ACCRUAL Section 1. Accrual Rate. All eligible fire suppression persons shall accrue vacation at the following rate for continuous service performed in a pay status. Non-shift representation unit employees shall accrue the 40-hour equivalent--one shift equals 28 sixteen hours. a. For employees completing less than four years continuous service, the accrual rate shall be five duty shifts per year. b. For employees completing four but not more than nine years continuous service, the accrual rate shall be eight duty shifts per year. c. For employees completing nine but not more than 14 years continuous service, the accrual rate shall be 10 duty shifts per year. d. For employees completing 14 but less than 19 years continuous service, the accrual rate shall be 11 duty shifts per year. e. For employees completing 19 or more years continuous service, the accrual rate shall be 12 duty shifts per year. Section 2. Unused At Termination. Represented employees who fail to use all vacation as accrued may continue the accrual balance and be entitled to all accrued but unused vacation upon termination, except as limited below. Section 3. Limits. Vacation accrual balances shall be limited to three times the annual accrual rate. Accrual credit beyond this limit shall not be recognized or compensated, except that for employees of record as of January 1, 1984 who have vacation excess on a one-time basis shall be set aside (banked) to be subsequently used as vacation or paid at termination. No additions may be made to the bank. The bank is established only to facilitate changeover from unlimited to three times annual accrual rate limitation on vacation accrual as herein provided. ARTICLE XXVII - USE OF VACATION Section 1. Maximum Number of Slots. The maximum number of vacation scheduling slots for representation unit suppression employees is four (4) per platoon on a year- round basis. Section 2. Approvals. Vacation scheduling must be approved by the Battalion Chief or Fire Chief. The minimum is twelve (12) hours or more for suppression employees. Advance vacation schedules for suppression shall begin either at 8:00 a.m. or 8:00 p.m. Section 3. Vacation Pay. Vacation pay shall be made available in advance of regular pay day provided that employee requests such advance in writing to the Finance Department at least two weeks prior to his/her vacation date. The employee's supervisor must verify vacation date on the request. 29 Section 4. Illness on 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 hospitalized for any period, the employee shall have the period of illness charged against sick leave and not against vacation leave. Section 5. When to be Taken. The time at which an employee may use accrued vacation leave and the amount to be taken at any one time shall be determined by the Chief with particular regard for the needs of the City, but insofar as possible, considering the wishes of the employee. Section 6. Limitation on Use. Employees may not use more than three times their annual rate of accrual in any calendar year period provided, however, that the Chief may grant exceptions to this limitation. Section 7. Waiting Period. Employees shall complete six months continuous service before using accrued vacation leave. Section 8. Double Compensation Prohibited. Employees shall not work for the City during their vacation. Section 9. Cash out Option. Once each calendar year an employee may cash out eight (8) or more hours of vacation accrual in excess of eighty (80) hours to a maximum of one hundred twenty (120) hours; PROVIDED, that the employee has taken eighty (80) hours of vacation off with pay in the previous twelve (12) months. ARTICLE XXVIII - SICK LEAVE Section 1. Statement of Policy. Sick leave shall be allowed and used only in case of actual personal sickness or disability, medical or dental treatment, or as authorized in Section 9. Up to six (6) days (72 shift hours for suppression personnel) sick leave per year may be used for illness in the immediate family (wife, husband, child, parent, parent-in-law, brother, sister, registered domestic partner, or close relative residing in the household of the employee.) Section 2. Eligibility. Regular employees shall be eligible to accrue and use sick leave. Section 3. Accrual. Sick leave shall be accrued bi-weekly, provided the employee has been in a pay status for 50 percent or more of a bi-weekly pay period. Sick leave shall be accrued at the rate of six shifts per year. Section 4. Accumulation. Accumulated sick leave may be accrued without limit, except as provided in Section 8 below. Section 5. Use. Sick leave may be used as needed and approved, to the point of depletion, at which time the employee will no longer receive pay for sick leave. A new 30 employee may, if necessary, use up to forty-eight (48) hours or shift equivalent of sick leave at any time during the first six months of employment. Any negative balances generated by such utilization will be charged against future accrual or deducted from final paycheck in the event of termination. 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 his/her option, choose either to receive the long- term disability benefits or to utilize the remainder of his/her accrued sick leave prior to applying for long-term disability benefits. Sick leave will not be granted for illness occurring during any leave of absence other than sick leave, unless the employee can demonstrate that it was necessary to come under the care of a doctor while on such other leave of absence. When an employee finds it necessary to be absent for any reason, he/she should cause the facts to be reported to the department within 60 minutes prior to his/her regular starting time on the first working day of absence, and shall regularly report on, or account in advance for each work day thereafter unless hospitalized or otherwise indisposed. Such reports may be subject to written documentation. Sick leave shall not be granted unless such report or advance accounting has been made, provided, however, that the department head may grant exception to this policy where the circumstances warrant. Section 6. Depletion of Sick Leave Benefits. Upon depletion of sick leave or the beginning of the period to be covered by payments under long-term disability group insurance coverage, whichever comes first, an employee may be granted a medical leave of absence without pay for a period not exceeding sixty days. If the employee is unable to return to work at the end of this period, he/she must request further medical leave which will be subject to the approval of the City Manager. If further leave is granted, the employee must notify the City of intent to return to work every thirty days. If further leave is not granted, the employee's service with the City shall be considered terminated. Section 7. Forfeiture Upon Termination. Employees leaving the municipal service shall forfeit all accumulated sick leave, except as otherwise provided by law and Section 8. In the event that notice of resignation is given, sick leave may be used only through the day which was designated as the final day of work by such notice. Section 8. Payment for Accumulated Sick Leave. Eligible employees (those hired before December 31, 1983) who leave the municipal service in good standing, or who die while employed in good standing by the City, 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 basic hourly rate of pay at termination. Full sick 31 leave accrual will be paid in the event of termination due to disability. For new employees hired after December 31, 1983, sick leave accrual accumulation will be limited to 1,000 hours with no payoff provisions for unused balance at termination for any reason. Section 9. Personal Business Leave Chargeable to Sick Leave. It is agreed between the parties that all shift personnel represented by the Union shall have the right to charge up to forty-eight (48) hours personal business leave per year to sick leave, and that all non-shift personnel shall have the right to charge up to twenty (20) hours personal business leave per year to sick leave. Such personal business leave shall be allowed only on a staffing available basis and where the provisions of the minimum staffing agreement are not affected. "Staffing available" means at or above minimum staffing levels as defined in Article XII. Section 10. Return to Work or Continue Work With Limited Duty. In cases of non- work-related injury, illness or pregnancy an employee, upon approval of the Fire Chief and the City Safety Officer, may return to work or continue work with doctor-approved limited duty. Approval for such limited duty shall be based upon department ability to provide work consistent with medical limitations and the length of time of the limitations. Shift employees must be willing to accept any non-shift limited duty schedule work location and may be subject to the reasonable availability of limited duty assignments. The City doctor may be consulted in determining work limitations. ARTICLE XXVIIIX - SUBPOENAS Employees required to answer subpoenas as a witness for the City of Palo Alto or for a plaintiff where the City of Palo Alto is a defendant shall not lose pay or benefits for work time lost to answer depositions or to appear in court. ARTICLE XXIX - WORKERS' COMPENSATION Section 1. Status Reporting While on Disability. Persons on disability will be required to appear or otherwise report at regular two-week intervals to the Fire Chief or designate to discuss his/her status of medical treatment therapy and physical condition. This section is not meant to unreasonably restrict employee's activities so long as such activities are cleared by the treating physician, treating program or alternative treatment program is maintained and employee is available for full or restricted duty as soon as medical clearance can be received. ARTICLE XXXI - PHYSICAL FITNESS MEDICAL EXAMINATIONS Physical fitness medical examinations for all represented employees may include 32 chest x-rays every three years unless otherwise directed by a physician, eye examination and hearing examination. ARTICLE XXXII- LEAVES OF ABSENCE WITHOUT PAY Section 1. 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 physician's verification including diagnosis and medical work restriction. Section 2. Other Leaves. Leaves of absence without pay may be granted in cases of personal emergency or when such absences would not be contrary to the best interest of the City. Non-disability prenatal and/or postpartum leave is available under this provision, but such leave shall not begin more than six months prenatal nor extend more than six months postpartum. Section 3. Accrued Vacation Credits. 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 not be unreasonably denied. In order to avoid misunderstandings, all leaves without pay must be in writing to be effective. Section 4. Approval of Department Head. Leave of absence without pay for one week or less may be granted by the department head, depending on the merit of the individual case. Section 5. Approval by City Manager. Leave of absence without pay in excess of one week's duration may be granted by the City Manager on the merit of the case, but such leave shall not exceed twelve months' duration. Section 6. Absence Without Leave. Unauthorized leave of absence shall be considered to be without pay, and reductions in the employee's pay shall be made accordingly. Unauthorized leave of absence may result in termination of employment. Section 7. Leave of Absence; Death Outside the Immediate Family. Leave without pay may be granted a regular employee by his/her department head in the event of death to family members other than one of the immediate family, such leave to be granted in accordance with Section 2 and Section 4. Section 8. Military Leave of Absence. State law shall govern the granting of military leaves of absence and the rights of employees returning from such absence. Section 9. Use of paid accruals while on leave. During unpaid leaves of absence for disability or other reasons, the employee may elect and the City may require the employee to use accrued vacation paid leave credits in a manner consistent with state and federal law. Requests for leaves without pay shall not be unreasonably denied. In order to avoid misunderstandings, all leaves without pay must be in writing to be 33 effective. ARTICLE XXXIII - LEAVES OF ABSENCE WITH PAY Section 1. City Manager Granted Leaves. The City Manager may grant a regular employee under his control a leave of absence with pay for a period not exceeding thirty calendar days for reasons he deems adequate and in the best interest of the City. Section 2. Council Granted Leave. The City Council may grant a regular employee a leave of absence with pay for a period not to exceed one year for reasons the Council considers adequate and in the best interest of the City. Section 3. Employee's Time Off to Vote. Time off with pay to vote at 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 4. Leaves of Absence; Death in Immediate Family. Leave of absence with pay of one shift with provision for approval of one additional shift for travel outside the area may be granted an employee by the Chief in the event of death in the employee's immediate family, which is defined for purposes of this section as wife, husband, son, son-in-law, daughter, daughter-in-law, father, mother, brother, brother-in-law, sister, sister-in-law, mother-in-law, father-in-law, grandfather, grandfather-in-law, grandmother, grandmother-in-law, uncle, aunt, 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. Requests for leave in excess of two shifts shall be subject to the approval of the City Manager. Section 5. Jury Duty; Leave of Absence. Employees required to report for jury duty 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 for such duties other than mileage or subsistence allowances within thirty days from the termination of his or her jury service. ARTICLE XXXIIIV – VOLUNTEER LEAVE PROGRAM The City of Palo Alto has established a Firefighter Voluntary Leave Program to provide members of Local 1319 International Association of Fire Fighters (IAFF) employees the opportunity to donate their accrued vacation time to assist fellow members of IAFF either due to: (a) an employee’s own verifiable non-industrial catastrophic illness or injury (as defined herein) or (b) in order to care for a member of the employee’s immediate family (spouse, child, parent or registered domestic partner suffering from a verifiable catastrophic illness or injury) and have exhausted or will presently exhaust all of their paid leave. In order to be eligible to receive donated leave, an employee must have a catastrophic illness or injury or an employee’s immediate family member must have a catastrophic 34 illness or injury that requires the employee to provide full-time care for this family member. Care will be taken to emphasize the voluntary nature of the plan and to insure confidentiality of employee participants and medical conditions (where applicable). A Firefighter Voluntary Leave Sharing Program has been established to accept donations of vacation in accordance with the Program’s guidelines. All donations shall be: 1. Voluntary 2. Irrevocable 3. Confidential, unless disclosure is required by law 4. In whole hour increments of at least four (4) hours, with the hours donated being converted to donee hours based on the donee’s salary rate (so that there will be no cost to the City due to salary differential). 5. The employee shall be required to exhaust all other types of leave to request donated leave 6. It is understood that employees seeking or receiving leave under this program will apply for long-term disability benefits for which they may be eligible 7. Where any of the period during which an employee receives donated leave is designated as family leave under the California Family Rights Act (CFRA/Family Medical Leave Act (FMLA), the employee will be eligible for continuation of medical and other available benefits during that the family leave period (for up to 12 weeks), in accordance with the requirements of those laws. If the employee receiving donated leave is not eligible for CFRA/FMLA benefit continuation, or after the employee has exhausted the available CFRA/FMLA leave period, the employee will need to pay the premiums for continued medical and other available benefits if the employee chooses to continue such coverages through the City 8. If the donation request is based on the need for an employee to care for an immediate family member, as defined above, the family member must require full-time care by the employee. Certification of this requirement by a health care professional is required 9. The maximum donated time a donee may receive is 12 months (if available). 10. Applications to donate leave or receive leave under this Program are made to the Human Resources Department 11. This is a pilot program and is subject to cancellation by either party IAFF members interested in donating leave or in applying to receive donated leave shall complete forms provided by the Human Resources Department. If an applicant for leave is found to meet the criteria set forth herein, Human Resources will determine the availability of and (as applicable) allocation of donated paid leave. Payroll will be notified in writing of the number of hours to be deducted from each donating employee’s vacation balance and transferred to the donee employee(s). The City reserves the right to modify or terminate this program at any time. 35 Catastrophic Illness or Injury (also referred to as “medical emergency” in Revenue Ruling 90-29 and Sections 801(c) and 812 of the Merit Rules and Regulations): A non- occupational medical condition of an employee that will require the prolonged absence of the employee from duty and which will result in a substantial loss of income to the employee because the employee will have exhausted all paid leave available apart from the Voluntary Employee Leave sharing Program. Non-disability postpartum leave as referenced in Merit Rule 801(b) shall not be considered a catastrophic illness or injury under this Policy. ARTICLE XXXIV- TUITION REIMBURSEMENT Section 1. Options. Effective July 1, 2004 the tuition reimbursement program was amended to provide each employee the option of receiving the $1,000 as taxable cash or as a contribution to deferred compensation. The tuition reimbursement program will be eliminated effective July 1, 2012 with no further payouts starting in FY 12-13 and on-going. ARTICLE XXXVI - PER DIEM TRAVEL EXPENSES Section 1. City Business. Unless other mutually agreeable arrangements are made, representation unit employees who are required to travel away from the City on City business will receive travel expenses, according to City policies which are currently in effect. ARTICLE XXXVII - HOUSE FUND ITEMS Section 1. Station House Fund. The station house fund per year, per shift employee shall be $10048.00. Section 2. Non-Food House Items. The City agrees to furnish and maintain each fire station with non-food house fund items: TV purchase and repair, the San Jose Mercury News, and the San Francisco Chronicle to be selected on an annual basis. Kitchen cooking utensils, small kitchen appliances and other specific items to be determined by mutual agreement of the parties will be purchased from the station house fund. The Fire Fighters agree to maintain the voter registration program. ARTICLE XXXVIII - PARKING Section 1. Entitlements. Employees in represented classes assigned to Civic Center or adjacent work locations shall be entitled to free parking in the Civic Center Garage, or a commute incentive which will be subject to meet and confer. Employees hired 36 after July 1, 1994, may initially receive a parking permit for another downtown lot, subject to availability of space at the Civic Center Garage. Light duty employees assigned to the Civic Center will receive Civic Center parking temporary permits for the duration of the light duty assignment. ARTICLE XXXVIIIX- GRIEVANCES The City and the Union agree to establish a grievance procedure as follows: 1. Definition: A grievance is any complaint or dispute regarding the application of interpretation of this Memorandum of Understanding, Department rules, regulations, policies or procedures relating to wages, hours or other terms and conditions of employment. 2. Any non-probationary employee represented by the Union may file and process a grievance. Such aggrieved employees may be represented by the Union or may represent themselves in preparing and presenting their grievance at any level of review. The Union may file a grievance when a Union right not directly related to an individual employee becomes subject to dispute. 3. Any retroactivity on monetary grievances shall be limited to the date of occurrence, except in no case will retroactivity be granted prior to three months before the grievance was filed in writing. 4. Written grievances shall be submitted on forms provided by the City or on forms which are mutually agreeable to the City and the Union. The Union shall deliver a copy of a written grievance to the Human Resources Department Director on the same date that it is first filed with another City representative under the provisions of the below grievance procedure. 5. The time limits specified in this section may be extended by mutual agreement in writing of the aggrieved employee or Union and the reviewer concerned. Should a decision not be rendered within a stipulated time limit, the aggrieved employee may immediately appeal to the next step. The grievance will be considered settled if the decision of any step is not appealed within the specified time limit. 6. If a grievance is related to a promotional process to positions within the representation unit, Step I shall be directed to the Deputy Fire Chief (or Fire Marshal for FPB positions). 7. Step I. The aggrieved employee will first attempt to resolve the grievance through informal discussions with the immediate supervisor by the end of the tenth business day following the discovery of the incident upon which the grievance is based. Every attempt will be made to settle the issue at this level. 37 Step II. If the grievance is not resolved through informal discussion, it may be submitted in writing to the Battalion Chief (Deputy Fire Chief for Captain grievances) within ten business days of the informal discussion. The Battalion Chief/Assistant Fire Chief will have ten business days from receipt of the grievance to review the matter and prepare a written response. If the grievance is denied, the response shall contain the reasons therefore. Step III. If the grievance is not resolved in Step II, it may be submitted in writing to the Fire Chief within ten business days of receipt of the Battalion Chief's/ Deputy Fire Chief's written response. The Fire Chief will have ten business days from receipt of the grievance to review the matter and prepare a written response. If the grievance is denied, the response shall contain the reasons therefore. Step IV. If the grievance is not resolved in Step III, the aggrieved employee may submit the grievance to the City Manager for final determination or to binding grievance arbitration. All Step IV appeals must be filed in writing at the Human Resources Department Office within ten business days of receipt of the Fire Chief's response under Step III. All hearings before the City Manager shall be pursuant to the rules and regulations set forth in the City of Palo Alto Merit Rules and Regulations. Hearings before an arbitrator will be as set forth below. In the event the aggrieved employee decides to proceed to arbitration, he/she shall select jointly with the Director of Human Resources an arbitrator. If the parties are unable to agree on an arbitrator, they shall jointly request a panel of five qualified and experienced arbitrators from the State Conciliation Service. Upon receipt of the list of arbitrators, the names shall be alternately struck until one name remains who shall serve as arbitrator. The arbitrator shall be jointly contacted by the parties. The arbitrator shall have jurisdiction and authority only to interpret, apply, or determine compliance with the provisions of the Memorandum of Agreement and such Merit System rules, regulations, policies, procedures, City ordinances or regulations 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 appealed to the arbitrator. The arbitrator shall be without power to make any decision: a. Regarding matters of interest. b. Contrary to, or inconsistent with or modifying in any way, the terms of this Memorandum of Agreement. c. Granting any wage increases or decreases. d. Granting pay or benefits for any period of time prior to the execution date of this Memorandum of Agreement. Where either party seeks arbitration and the other party claims the matter is not 38 subject to the arbitration provisions of the Memorandum of Agreement, the issue of arbitrability shall first be decided by the arbitrator using the standards and criteria set forth in 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. Copies of the arbitrator's decision shall be submitted to the City and the aggrieved employee. All direct costs emanating from the arbitration procedure shall be shared equally by the City and the aggrieved employee or the Union. It is further agreed that the provisions of this section shall be incorporated as part of Chapter 11 of the City of Palo Alto Merit System Rules and Regulations. Existing procedures set forth in Chapter 11, to the extent they are inconsistent with the provisions contained herein, are superseded. ARTICLE XXXIXL- SAFETY COMMITTEE Section 1. Committee A Safety Committee comprised of four representation unit members appointed by the Union, and at least two members of Management, will continue to meet. The Committee may make safety recommendations to the Fire Chief regarding equipment, vehicles and apparatus and may review all accidents involving represented personnel. Management shall inform the Safety Committee of all accidents involving injuries to represented personnel. ARTICLE XLI – MISCELLANEOUS Section 1. T-Shirts. The City will issue four T-shirts to each uniformed employee each July These T-shirts are for use on duty only and will be maintained by the employee. Section 2. Removal of Disciplinary Actions. Records of disciplinary actions shall be removed from the personnel file of a representation unit employee upon written request by the employee after a period of three years, or sooner if mutually agreed by the Fire Chief and the employee. ARTICLE XLII - FULL UNDERSTANDING Section 1. Full and Entire Understanding. The Memorandum of Agreement contains the full and entire understanding of the parties regarding the matters set forth herein. Section 2. Fair Labor Standards Act. Compensatory time off with Management approval may be used as an alternative to overtime compensation only within the 27- day work period within which the overtime is worked. Section 3. Severability. Should any of the provisions herein contained be rendered or 39 declared invalid by reason of any existing State or Federal legislation or by reason of State or U.S. Supreme Court ruling, such invalidation of such part or portion of this Memorandum of Agreement shall not invalidate the remaining portions hereof, and they shall remain in full force and effect, insofar as such remaining portions are severable. Section 4. Good Faith. It is the intent of the parties that ordinances, resolutions, rules and regulations enacted pursuant to this Memorandum of Understanding be administered and observed in good faith. Section 5. Merit System Rules and Regulations. During the term of this Memorandum of Agreement, Management may propose certain changes in the City Merit System Rules and Regulations. With regard to such changes which pertain to the representation unit, the parties agree to review, and upon request, meet and confer regarding the changes. Section 6. Station Consolidation or Relocation . During the term of this agreement, at management request, the parties agree to meet and confer with regard to issues pertaining to fire station consolidation or relocation. Section 7. Meet and Confer. Nothing in this agreement shall preclude the parties from mutually agreeing to meet and confer on any subject within the scope of representation during the term of this agreement. ARTICLE XLIII – 48/96 Work Schedule Pilot Program The regular schedule for 56 hour personnel will be under a “48/96” model. With the adoption of this “48/96” schedule the parties agreed to revise Fire Department policy 205.6 typical workday and 1009.8.1 Reporting for Duty- Holidays. The City of Palo Alto (City) and the International Association of Fire Fighters, Local 1319 (Union) agree to have the City evaluate changing the Palo Alto Fire Department’s work schedule for 56-hour personnel from its current schedule to a “48/96” work schedule with the goal of implementing a pilot schedule change in January 2017, if the parties are in agreement and required administrative and technology changes can be implemented by this date. Upon ratification of a new Memorandum of Agreement, a Labor Management Committee (LMC), including representatives from the Union, Fire Management, the City Manager’s Office, Human Resources, and the Administrative Services Department, will meet to design and evaluate the possible implementation of a “48/96” work schedule that is FLSA compliant, cost neutral, meets the needs of the City and does not compromise the effectiveness of fire services. 40 The goal will be for the Committee to complete preparation for the evaluation by October 1, 2016. If a schedule can be designed that is FLSA compliant, cost neutral and does not compromise service to the community, the parties agree to move forward with a pilot work schedule change. The City will begin making required administrative and technology changes in order to implement the pilot “48/96” work schedule by January 1, 2017. The actual date of implementation will be dependent upon the City’s ability to modify payroll, staff scheduling and any other related systems to support the new schedule. The initial “Pilot Program” is planned to run for the term of the MOA, but may be terminated at any time if is determined to have a negative impact on costs or workforce effectiveness. The Pilot will conclude at the end of the MOA unless the parties mutually agree to extend the Pilot or adopt the Pilot as the standard 56-hour work schedule. ARTICLE XLIII – FUTURE SERVICE DELIVERY MODELS Effective upon request of the City, the parties will meet and confer in good faith regarding the service delivery model of current inspection services and transport during the term of this Agreement. ARTICLE XLIIV - DURATION This Memorandum of Agreement shall become effective upon adoption by the City Council for the period of July 1, 2014 through June 30, 202118. 41 EXECUTED: FOR: FOR: INTERNATIONAL ASSOCIATION CIT Y OF PALO ALTO FIRE FIGHTERS Ryan Stoddard, President Local 1319 James Keene, City Manager Nate Heydorff, Vice President Local 1319 Rumi Portillo, Human Resources Director Doug Slezak, Treasurer Local 1319 Geoffrey Blackshire, Deputy Fire Chief Dennis Wallach, Mastagni, Holstedt APC Fra nk Lee, Senior HR Administrator Dania Torres Wong, Chief Negotiator Renne Sloan Holtzman & Sakai Ryan Stoddard, President Local 1319 Nate Heydorff, Vice President Local 1319 Sunny Johnson-Gutter, Secretary Local 1319 James Keene, City Manager Rumi Portillo, Human Resources Director Sandra Blanch, Assistant Director of Human Resources Nicholas Raisch, Manager of Employee Relations and Training Geoffrey Blackshire, Deputy Fire Chief Maria Patino, Human Resources Representative Sunny Johnson-Gutter, Secretary Local 1319 Eric Nickel, Fire Chief Sarah Wallace, General Board member Local 1319 Catherine Capriles, Deputy Fire Chief Stephen Lindsey, General Board membe Local 1319 Stephen Lindsey, General Board membe Local 1319 Amber Cameron, Senior Management Analyst Kyle Salisbury, General Board member Local 1319 Kyle Salisbury, General Board member Local 1319 23 4 678 911121314 Job Code FLSA SH/NS Job Title Step Rate Monthly Annual Step Rate Monthly Annual Step Rate Monthly Annual 601 Non‐exempt SH FIRE APPARATUS OP 1 33.80$        1 34.81$              1 35.86$               601 2 35.58$        2 36.64$              2 37.75$               601 3 37.45$        3 38.57$              3 39.74$               601 4 39.42$        4 40.60$              4 41.83$               601 5 41.49$        10,068$          120,819$           5 42.74$              10,372$                 124,459$               5 44.03$              10,685$ 128,215$            602 Non‐exempt SH FIRE CAPTAIN 1 40.09$        1 41.30$              1 42.54$               602 2 42.20$        2 43.47$              2 44.78$               602 3 44.42$        3 45.76$              3 47.14$               602 4 46.76$        4 48.17$              4 49.62$               602 5 49.22$        11,944$          143,329$           5 50.70$              12,303$                 147,638$               5 52.23$              12,674$ 152,094$            603 Non‐exempt SH FIRE INSPECTOR 1 42.10$        1 43.37$              1 44.68$               603 2 44.32$        2 45.65$              2 47.03$               603 3 46.65$        3 48.05$              3 49.50$               603 4 49.10$        4 50.58$              4 52.10$               603 5 51.68$        12,541$          150,492$           5 53.24$              12,920$                 155,035$               5 54.84$              13,308$ 159,694$            604 Non‐exempt SH FIRE FIGHTER 1 31.62$        1 32.57$              1 33.54$               604 2 33.28$        2 34.28$              2 35.30$               604 3 35.03$        3 36.08$              3 37.16$               604 4 36.87$        4 37.98$              4 39.12$               604 5 38.81$        9,418$             113,015$           5 39.98$              9,702$ 116,422$               5 41.18$              9,993$ 119,916$            606 Non‐exempt SH OPER PARAMEDIC‐12.5 1 38.01$        1 39.17$              1 40.35$               606 2 40.01$        2 41.23$              2 42.47$               606 3 42.12$        3 43.40$              3 44.70$               606 4 44.34$        4 45.68$              4 47.05$               606 5 46.67$        11,325$          135,903$           5 48.08$              11,667$                 140,009$               5 49.53$              12,019$ 144,231$            608 Non‐exempt SH CAPTAIN PARAMEDIC‐12.5 1 45.10$        1 46.46$              1 47.86$               608 2 47.47$        2 48.91$              2 50.38$               608 3 49.97$        3 51.48$              3 53.03$               608 4 52.60$        4 54.19$              4 55.82$               608 5 55.37$        13,436$          161,237$           5 57.04$              13,842$                 166,100$               5 58.76$              14,259$ 171,109$            610 Non‐exempt SH INSPCTR PARAMDC‐12.5 1 45.51$        1 46.87$              1 48.29$               610 2 47.91$        2 49.34$              2 50.83$               610 3 50.43$        3 51.94$              3 53.50$               610 4 53.08$        4 54.67$              4 56.32$               610 5 55.87$        13,558$          162,693$           5 57.55$              13,965$                 167,586$               5 59.28$              14,385$ 172,623$            676 Non‐exempt SH F FIGHTR PARAMEDC‐12.5 1 35.57$        1 36.62$              1 37.72$               676 2 37.44$        2 38.55$              2 39.71$               676 3 39.41$        3 40.58$              3 41.80$               676 4 41.48$        4 42.72$              4 44.00$               676 5 43.66$        10,595$          127,138$           5 44.97$              10,913$                 130,953$               5 46.32$              11,240$ 134,884$            IAFF Salary Schedule Effective  the pay period following adoption  (5.5% Increase) Effective first full pay period following July 1, 2019 (3% Increase) Effective first full pay period following July 1, 2020 (3% Increase) Appendix A 23 4 678 911121314 Job Code FLSA SH/NS Job Title IAFF Salary Schedule Effective  the pay period following adoption  (5.5% Increase) Effective first full pay period following July 1, 2019 (3% Increase) Effective first full pay period following July 1, 2020 (3% Increase) 677 Non‐exempt SH HAZ MAT SPEC 1 43.32$        1 44.63$              1 45.97$               677 2 45.60$        2 46.98$              2 48.39$               677 3 48.00$        3 49.45$              3 50.94$               677 4 50.53$        4 52.05$              4 53.62$               677 5 53.19$        12,907$          154,889$           5 54.79$              13,296$                 159,548$               5 56.44$              13,696$ 164,353$            678 Non‐exempt SH HAZ MAT INSPECTOR 1 42.10$        1 43.37$              1 44.68$               678 2 44.32$        2 45.65$              2 47.03$               678 3 46.65$        3 48.05$              3 49.50$               678 4 49.10$        4 50.58$              4 52.10$               678 5 51.68$        12,541$          150,492$           5 53.24$              12,920$                 155,035$               5 54.84$              13,308$ 159,694$            680 Non‐exempt SH FIRE FIGHTER HAZ MAT 1 33.18$        1 34.20$              1 35.23$               680 2 34.93$        2 36.00$              2 37.08$               680 3 36.77$        3 37.89$              3 39.03$               680 4 38.71$        4 39.88$              4 41.08$               680 5 40.75$        9,889$             118,664$           5 41.98$              10,187$                 122,246$               5 43.24$              10,493$ 125,915$            681 Non‐exempt SH FIRE APPR OP HAZ MAT 1 35.47$        1 36.56$              1 37.64$               681 2 37.34$        2 38.48$              2 39.62$               681 3 39.31$        3 40.50$              3 41.71$               681 4 41.38$        4 42.63$              4 43.91$               681 5 43.56$        10,571$          126,847$           5 44.87$              10,888$                 130,661$               5 46.22$              11,216$ 134,593$            682 Non‐exempt SH FIRE CAPTAIN HAZ MAT 1 42.10$        1 43.38$              1 44.68$               682 2 44.32$        2 45.66$              2 47.03$               682 3 46.65$        3 48.06$              3 49.50$               682 4 49.11$        4 50.59$              4 52.11$               682 5 51.69$        12,543$          150,521$           5 53.25$              12,922$                 155,064$               5 54.85$              13,310$ 159,723$            683 Non‐exempt SH FIRE FIGHTER EMT 1 32.57$        1 33.54$              1 34.56$               683 2 34.28$        2 35.30$              2 36.38$               683 3 36.08$        3 37.16$              3 38.29$               683 4 37.98$        4 39.12$              4 40.30$               683 5 39.98$        9,702$             116,422$           5 41.18$              9,993$ 119,916$               5 42.42$              10,294$ 123,527$            684 Non‐exempt SH FIRE FGHTR HZ MT EMT 1 34.14$        1 35.17$              1 36.23$               684 2 35.94$        2 37.02$              2 38.14$               684 3 37.83$        3 38.97$              3 40.15$               684 4 39.82$        4 41.02$              4 42.26$               684 5 41.92$        10,173$          122,071$           5 43.18$              10,478$                 125,740$               5 44.48$              10,794$ 129,526$            685 Non‐exempt SH FIRE APPARATUS OP EMT 1 34.81$        1 35.86$              1 36.95$               685 2 36.64$        2 37.75$              2 38.89$               685 3 38.57$        3 39.74$              3 40.94$               685 4 40.60$        4 41.83$              4 43.09$               685 5 42.74$        10,372$          124,459$           5 44.03$              10,685$                 128,215$               5 45.36$              11,007$ 132,088$            23 4 678 911121314 Job Code FLSA SH/NS Job Title IAFF Salary Schedule Effective  the pay period following adoption  (5.5% Increase) Effective first full pay period following July 1, 2019 (3% Increase) Effective first full pay period following July 1, 2020 (3% Increase) 686 Non‐exempt SH FIRE AP OP HZ MT EMT 1 36.50$        1 37.60$              1 38.72$               686 2 38.42$        2 39.58$              2 40.76$               686 3 40.44$        3 41.66$              3 42.91$               686 4 42.57$        4 43.85$              4 45.17$               686 5 44.81$        10,874$          130,487$           5 46.16$              11,201$                 134,418$               5 47.55$              11,539$ 138,466$            687 Non‐exempt SH FIRE CAPTAIN EMT 1 41.30$        1 42.55$              1 43.82$               687 2 43.47$        2 44.79$              2 46.13$               687 3 45.76$        3 47.15$              3 48.56$               687 4 48.17$        4 49.63$              4 51.12$               687 5 50.71$        12,306$          147,668$           5 52.24$              12,677$                 152,123$               5 53.81$              13,058$ 156,695$            688 Non‐exempt SH FIRE CAP HAZ MAT EMT 1 43.30$        1 44.61$              1 45.95$               688 2 45.58$        2 46.96$              2 48.37$               688 3 47.98$        3 49.43$              3 50.92$               688 4 50.51$        4 52.03$              4 53.60$               688 5 53.17$        12,903$          154,831$           5 54.77$              13,291$                 159,490$               5 56.42$              13,691$ 164,295$            689 Non‐exempt SH FIRE INSPECTOR EMT 1 43.39$        1 44.68$              1 46.03$               689 2 45.67$        2 47.03$              2 48.45$               689 3 48.07$        3 49.51$              3 51.00$               689 4 50.60$        4 52.12$              4 53.68$               689 5 53.26$        12,924$          155,093$           5 54.86$              13,313$                 159,752$               5 56.51$              13,713$ 164,557$            691 Non‐exempt SH F FGH PRDMD‐12.5 EMT 1 36.52$        1 37.62$              1 38.74$               691 2 38.44$        2 39.60$              2 40.78$               691 3 40.46$        3 41.68$              3 42.93$               691 4 42.59$        4 43.87$              4 45.19$               691 5 44.83$        10,879$          130,545$           5 46.18$              11,206$                 134,476$               5 47.57$              11,544$ 138,524$            693 Non‐exempt SH OPR PRMDC‐12.5 EMT 1 39.03$        1 40.20$              1 41.42$               693 2 41.08$        2 42.32$              2 43.60$               693 3 43.24$        3 44.55$              3 45.89$               693 4 45.52$        4 46.89$              4 48.31$               693 5 47.92$        11,629$          139,543$           5 49.36$              11,978$                 143,736$               5 50.85$              12,340$ 148,075$            695 Non‐exempt SH CAPT PRMDC‐12.5 EMT 1 46.31$        1 47.71$              1 49.13$               695 2 48.75$        2 50.22$              2 51.72$               695 3 51.32$        3 52.86$              3 54.44$               695 4 54.02$        4 55.64$              4 57.31$               695 5 56.86$        13,798$          165,576$           5 58.57$              14,213$                 170,556$               5 60.33$              14,640$ 175,681$            696 Non‐exempt SH HAZ MAT SPEC EMT 1 44.63$        1 45.97$              1 47.36$               696 2 46.98$        2 48.39$              2 49.85$               696 3 49.45$        3 50.94$              3 52.47$               696 4 52.05$        4 53.62$              4 55.23$               696 5 54.79$        13,296$          159,548$           5 56.44$              13,696$                 164,353$               5 58.14$              14,109$ 169,304$            23 4 678 911121314 Job Code FLSA SH/NS Job Title IAFF Salary Schedule Effective  the pay period following adoption  (5.5% Increase) Effective first full pay period following July 1, 2019 (3% Increase) Effective first full pay period following July 1, 2020 (3% Increase) 671 Non‐exempt SH FIRE FGHTR EMT HAZ MT PARA 1 38.09$        1 39.24$              1 40.41$               671 2 40.09$        2 41.30$              2 42.54$               671 3 42.20$        3 43.47$              3 44.78$               671 4 44.42$        4 45.76$              4 47.14$               671 5 46.76$        11,347$          136,165$           5 48.17$              11,689$                 140,271$               5 49.62$              12,041$                         144,493$            672 Non‐exempt SH FIRE AP OP EMT HAZ MT PARA 1 40.72$        1 41.94$              1 43.21$               672 2 42.86$        2 44.15$              2 45.48$               672 3 45.12$        3 46.47$              3 47.87$               672 4 47.49$        4 48.92$              4 50.39$               672 5 49.99$        12,131$          145,571$           5 51.49$              12,495$                 149,939$               5 53.04$              12,871$                         154,452$            661 Non‐exempt SH FIRE CPT  EMT HAZ MT PARA 1 48.32$        1 49.77$              1 51.27$               661 2 50.86$        2 52.39$              2 53.97$               661 3 53.54$        3 55.15$              3 56.81$               661 4 56.36$        4 58.05$              4 59.80$               661 5 59.33$        14,397$          172,769$           5 61.11$              14,829$                 177,952$               5 62.95$              15,276$                         183,310$            634 Non‐exempt NS FIRE APPARATUS OP 1 47.30$        1 48.73$              1 50.19$               634 2 49.79$        2 51.29$              2 52.83$               634 3 52.41$        3 53.99$              3 55.61$               634 4 55.17$        4 56.83$              4 58.54$               634 5 58.07$        10,065$          120,786$           5 59.82$              10,369$                 124,426$               5 61.62$              10,681$                         128,170$            635 Non‐exempt NS FIRE CAPTAIN 1 56.14$        1 57.83$              1 59.56$               635 2 59.09$        2 60.87$              2 62.69$               635 3 62.20$        3 64.07$              3 65.99$               635 4 65.47$        4 67.44$              4 69.46$               635 5 68.92$        11,946$          143,354$           5 70.99$              12,305$                 147,659$               5 73.12$              12,674$                         152,090$            636 Non‐exempt NS FIRE INSPECTOR 1 58.94$        1 60.71$              1 62.54$               636 2 62.04$        2 63.91$              2 65.83$               636 3 65.30$        3 67.27$              3 69.29$               636 4 68.74$        4 70.81$              4 72.94$               636 5 72.36$        12,542$          150,509$           5 74.54$              12,920$                 155,043$               5 76.78$              13,309$                         159,702$            637 Non‐exempt NS FIRE FIGHTER 1 44.25$        1 45.58$              1 46.95$               637 2 46.58$        2 47.98$              2 49.42$               637 3 49.03$        3 50.50$              3 52.02$               637 4 51.61$        4 53.16$              4 54.76$               637 5 54.33$        9,417$             113,006$           5 55.96$              9,700$                   116,397$               5 57.64$              9,991$                            119,891$            638 Non‐exempt NS OPER PARAMEDIC‐12.5 1 53.20$        1 54.80$              1 56.45$               638 2 56.00$        2 57.68$              2 59.42$               638 3 58.95$        3 60.72$              3 62.55$               638 4 62.05$        4 63.92$              4 65.84$               638 5 65.32$        11,322$          135,866$           5 67.28$              11,662$                 139,942$               5 69.30$              12,012$                         144,144$            23 4 678 911121314 Job Code FLSA SH/NS Job Title IAFF Salary Schedule Effective  the pay period following adoption  (5.5% Increase) Effective first full pay period following July 1, 2019 (3% Increase) Effective first full pay period following July 1, 2020 (3% Increase) 639 Non‐exempt NS CAPTAIN PARAMEDIC‐12.5 1 63.15$        1 65.06$              1 67.00$               639 2 66.47$        2 68.48$              2 70.53$               639 3 69.97$        3 72.08$              3 74.24$               639 4 73.65$        4 75.87$              4 78.15$               639 5 77.53$        13,439$          161,262$           5 79.86$              13,842$                 166,109$               5 82.26$              14,258$                         171,101$            641 Non‐exempt NS INSPCTR PARAMDC‐12.5 1 63.69$        1 65.60$              1 67.57$               641 2 67.04$        2 69.05$              2 71.13$               641 3 70.57$        3 72.68$              3 74.87$               641 4 74.28$        4 76.51$              4 78.81$               641 5 78.19$        13,553$          162,635$           5 80.54$              13,960$                 167,523$               5 82.96$              14,380$                         172,557$            642 Non‐exempt NS 40‐HR TRAINING CAPTAIN 1 58.94$        1 60.71$              1 62.54$               642 2 62.04$        2 63.91$              2 65.83$               642 3 65.30$        3 67.27$              3 69.29$               642 4 68.74$        4 70.81$              4 72.94$               642 5 72.36$        12,542$          150,509$           5 74.54$              12,920$                 155,043$               5 76.78$              13,309$                         159,702$            643 Non‐exempt NS 40‐HR TRAINING CAPTAIN EMT 1 60.71$        1 62.53$              1 64.41$               643 2 63.90$        2 65.82$              2 67.80$               643 3 67.26$        3 69.28$              3 71.37$               643 4 70.80$        4 72.93$              4 75.13$               643 5 74.53$        12,919$          155,022$           5 76.77$              13,307$                 159,682$               5 79.08$              13,707$                         164,486$            644 Non‐exempt NS F FIGHTR PARAMEDC‐12.5 1 49.77$        1 51.26$              1 52.80$               644 2 52.39$        2 53.96$              2 55.58$               644 3 55.15$        3 56.80$              3 58.51$               644 4 58.05$        4 59.79$              4 61.59$               644 5 61.10$        10,591$          127,088$           5 62.94$              10,910$                 130,915$               5 64.83$              11,237$                         134,846$            645 Non‐exempt NS HAZ MAT SPEC 1 60.67$        1 62.49$              1 64.37$               645 2 63.86$        2 65.78$              2 67.76$               645 3 67.22$        3 69.24$              3 71.33$               645 4 70.76$        4 72.88$              4 75.08$               645 5 74.48$        12,910$          154,918$           5 76.72$              13,298$                 159,578$               5 79.03$              13,699$                         164,382$            646 Non‐exempt NS HAZ MAT INSPECTOR 1 58.94$        1 60.71$              1 62.54$               646 2 62.04$        2 63.91$              2 65.83$               646 3 65.30$        3 67.27$              3 69.29$               646 4 68.74$        4 70.81$              4 72.94$               646 5 72.36$        12,542$          150,509$           5 74.54$              12,920$                 155,043$               5 76.78$              13,309$                         159,702$            647 Non‐exempt NS FIRE FIGHTER HAZ MAT 1 46.46$        1 47.85$              1 49.30$               647 2 48.90$        2 50.37$              2 51.89$               647 3 51.47$        3 53.02$              3 54.62$               647 4 54.18$        4 55.81$              4 57.49$               647 5 57.03$        9,885$             118,622$           5 58.75$              10,183$                 122,200$               5 60.52$              10,490$                         125,882$            23 4 678 911121314 Job Code FLSA SH/NS Job Title IAFF Salary Schedule Effective  the pay period following adoption  (5.5% Increase) Effective first full pay period following July 1, 2019 (3% Increase) Effective first full pay period following July 1, 2020 (3% Increase) 650 Non‐exempt NS FIRE APPR OP HAZ MAT 1 49.66$        1 51.16$              1 52.70$               650 2 52.27$        2 53.85$              2 55.47$               650 3 55.02$        3 56.68$              3 58.39$               650 4 57.92$        4 59.66$              4 61.46$               650 5 60.97$        10,568$          126,818$           5 62.80$              10,885$                 130,624$               5 64.69$              11,213$                         134,555$            648 Non‐exempt NS FIRE CAPTAIN HAZ MAT 1 58.94$        1 60.71$              1 62.54$               648 2 62.04$        2 63.91$              2 65.83$               648 3 65.30$        3 67.27$              3 69.29$               648 4 68.74$        4 70.81$              4 72.94$               648 5 72.36$        12,542$          150,509$           5 74.54$              12,920$                 155,043$               5 76.78$              13,309$                         159,702$            649 Non‐exempt NS FIRE FIGHTER EMT 1 45.58$        1 46.95$              1 48.36$               649 2 47.98$        2 49.42$              2 50.90$               649 3 50.50$        3 52.02$              3 53.58$               649 4 53.16$        4 54.76$              4 56.40$               649 5 55.96$        9,700$             116,397$           5 57.64$              9,991$                   119,891$               5 59.37$              10,291$                         123,490$            651 Non‐exempt NS FIRE FGHTR HZ MT EMT 1 47.79$        1 49.23$              1 50.71$               651 2 50.30$        2 51.82$              2 53.38$               651 3 52.95$        3 54.55$              3 56.19$               651 4 55.74$        4 57.42$              4 59.15$               651 5 58.67$        10,169$          122,034$           5 60.44$              10,476$                 125,715$               5 62.26$              10,792$                         129,501$            652 Non‐exempt NS FIRE APPARATUS OP EMT 1 48.73$        1 50.19$              1 51.71$               652 2 51.29$        2 52.83$              2 54.43$               652 3 53.99$        3 55.61$              3 57.29$               652 4 56.83$        4 58.54$              4 60.30$               652 5 59.82$        10,369$          124,426$           5 61.62$              10,681$                 128,170$               5 63.47$              11,001$                         132,018$            653 Non‐exempt NS FIRE AP OP HZ MT EMT 1 51.08$        1 52.62$              1 54.21$               653 2 53.77$        2 55.39$              2 57.06$               653 3 56.60$        3 58.31$              3 60.06$               653 4 59.58$        4 61.38$              4 63.22$               653 5 62.72$        10,871$          130,458$           5 64.61$              11,199$                 134,389$               5 66.55$              11,535$                         138,424$            655 Non‐exempt NS FIRE CAPTAIN EMT 1 57.84$        1 59.57$              1 61.35$               655 2 60.88$        2 62.70$              2 64.58$               655 3 64.08$        3 66.00$              3 67.98$               655 4 67.45$        4 69.47$              4 71.56$               655 5 71.00$        12,307$          147,680$           5 73.13$              12,676$                 152,110$               5 75.33$              13,057$                         156,686$            654 Non‐exempt NS FIRE CAP HAZ MAT EMT 1 60.60$        1 62.42$              1 64.30$               654 2 63.79$        2 65.71$              2 67.68$               654 3 67.15$        3 69.17$              3 71.24$               654 4 70.68$        4 72.81$              4 74.99$               654 5 74.40$        12,896$          154,752$           5 76.64$              13,284$                 159,411$               5 78.94$              13,683$                         164,195$            23 4 678 911121314 Job Code FLSA SH/NS Job Title IAFF Salary Schedule Effective  the pay period following adoption  (5.5% Increase) Effective first full pay period following July 1, 2019 (3% Increase) Effective first full pay period following July 1, 2020 (3% Increase) 656 Non‐exempt NS FIRE INSPECTOR EMT 1 60.71$        1 62.53$              1 64.41$               656 2 63.90$        2 65.82$              2 67.80$               656 3 67.26$        3 69.28$              3 71.37$               656 4 70.80$        4 72.93$              4 75.13$               656 5 74.53$        12,919$          155,022$           5 76.77$              13,307$                 159,682$               5 79.08$              13,707$                         164,486$            657 Non‐exempt NS F FGH PRDMD‐12.5 EMT 1 51.11$        1 52.65$              1 54.24$               657 2 53.80$        2 55.42$              2 57.09$               657 3 56.63$        3 58.34$              3 60.09$               657 4 59.61$        4 61.41$              4 63.25$               657 5 62.75$        10,877$          130,520$           5 64.64$              11,204$                 134,451$               5 66.58$              11,541$                         138,486$            658 Non‐exempt NS OPR PRMDC‐12.5 EMT 1 54.63$        1 56.28$              1 57.97$               658 2 57.50$        2 59.24$              2 61.02$               658 3 60.53$        3 62.36$              3 64.23$               658 4 63.72$        4 65.64$              4 67.61$               658 5 67.07$        11,625$          139,506$           5 69.09$              11,976$                 143,707$               5 71.17$              12,336$                         148,034$            697 Non‐exempt NS CAPT PRMDC‐12.5 EMT 1 64.83$        1 66.78$              1 68.78$               697 2 68.24$        2 70.29$              2 72.40$               697 3 71.83$        3 73.99$              3 76.21$               697 4 75.61$        4 77.88$              4 80.22$               697 5 79.59$        13,796$          165,547$           5 81.98$              14,210$                 170,518$               5 84.44$              14,636$                         175,635$            660 Non‐exempt NS HAZ MAT INSPECTOR  EMT 1 60.71$        1 62.53$              1 64.41$               660 2 63.90$        2 65.82$              2 67.80$               660 3 67.26$        3 69.28$              3 71.37$               660 4 70.80$        4 72.93$              4 75.13$               660 5 74.53$        12,919$          155,022$           5 76.77$              13,307$                 159,682$               5 79.08$              13,707$                         164,486$            659 Non‐exempt NS HAZ MAT SPEC EMT 1 62.48$        1 64.35$              1 66.29$               659 2 65.77$        2 67.74$              2 69.78$               659 3 69.23$        3 71.31$              3 73.45$               659 4 72.87$        4 75.06$              4 77.32$               659 5 76.70$        13,295$          159,536$           5 79.01$              13,695$                 164,341$               5 81.39$              14,108$                         169,291$            673 Non‐exempt NS FIRE FGHTR EMT HAZ MT PARA 1 53.30$        1 54.90$              1 56.55$               673 2 56.10$        2 57.79$              2 59.53$               673 3 59.05$        3 60.83$              3 62.66$               673 4 62.16$        4 64.03$              4 65.96$               673 5 65.43$        11,341$          136,094$           5 67.40$              11,683$                 140,192$               5 69.43$              12,035$                         144,414$            674 Non‐exempt NS FIRE AP OP EMT HAZ MT PARA 1 56.99$        1 58.71$              1 60.47$               674 2 59.99$        2 61.80$              2 63.65$               674 3 63.15$        3 65.05$              3 67.00$               674 4 66.47$        4 68.47$              4 70.53$               674 5 69.97$        12,128$          145,538$           5 72.07$              12,492$                 149,906$               5 74.24$              12,868$                         154,419$            23 4 678 911121314 Job Code FLSA SH/NS Job Title IAFF Salary Schedule Effective  the pay period following adoption  (5.5% Increase) Effective first full pay period following July 1, 2019 (3% Increase) Effective first full pay period following July 1, 2020 (3% Increase) 662 Non‐exempt NS FIRE CPT EMT HAZ MT PARA 1 67.63$        1 69.66$              1 71.76$               662 2 71.19$        2 73.33$              2 75.54$               662 3 74.94$        3 77.19$              3 79.52$               662 4 78.88$        4 81.25$              4 83.70$               662 5 83.03$        14,392$          172,702$           5 85.53$              14,825$                 177,902$               5 88.10$              15,271$                         183,248$            51 APPENDIX B Letter of Intent The City and IAFF during the term of this agreement will convene a committee to discuss a strike team relief process. The parties mutually agree there is value in giving employees returning from lengthy strike team deployments access to additional leave banks which they currently are unable to utilize. This committee will develop consistent practices for the department to address what steps should be taken and what leave banks employees use based on their return time and date. A new practice shall only be implemented if mutual agreement is reached. Memorandum of Agreement City of Palo Alto and Palo Alto Fire Chiefs’ Association October 1, 2018– June 30, 2021 1 MEMORANDUM OF AGREEMENT Table of Contents PREAMBLE ____________________________________________________________________________________ 4 ARTICLE I - RECOGNITION _______________________________________________________________________ 4 SECTION 1. ___________________________________________________________________________________ 4 ARTICLE II - NO DISCRIMINATION _________________________________________________________________ 4 SECTION 1. ___________________________________________________________________________________ 4 SECTION 2 ___________________________________________________________________________________ 4 ARTICLE III - PAYROLL DEDUCTIONS _______________________________________________________________ 4 SECTION 1 ___________________________________________________________________________________ 4 SECTION 2. CERTIFICATION OF UNION MEMBERSHIP _______________________________________________________ 5 SECTION 3. INDEMNIFICATION ______________________________________________________________________ 5 ARTICLE IV - NO STRIKES ________________________________________________________________________ 5 SECTION 1 ___________________________________________________________________________________ 5 ARTICLE V - SALARY PROVISIONS _________________________________________________________________ 5 SECTION 1. SALARY RANGE ADJUSTMENTS. _____________________________________________________________ 5 SECTION 2. EMT DIFFERENTIAL _____________________________________________________________________ 6 SECTION 3. 40-HOUR WORK WEEK ASSIGNMENT DIFFERENTIAL _______________________________________________ 6 SECTION 4. OUT OF COUNTY STRIKE TEAM PAY. _________________________________________________________ 6 ARTICLE VI – HOLIDAYS _________________________________________________________________________ 7 SECTION 1. NAMED HOLIDAYS. _____________________________________________________________________ 7 SECTION 2. 56-HOUR WORK WEEK ASSIGNMENTS ________________________________________________________ 7 SECTION 3. 40-HOUR WORK WEEK ASSIGNMENTS. _______________________________________________________ 7 ARTICLE VII - VACATION ACCRUAL _________________________________________________________________ 7 SECTION 1. ___________________________________________________________________________________ 7 SECTION 2. 56-HOUR WORKWEEK ASSIGNMENTS ________________________________________________________ 7 SECTION 3. 40-HOUR WORKWEEK ASSIGNMENTS. ________________________________________________________ 8 ARTICLE VIII - VACATION CASH OUT _______________________________________________________________ 8 SECTION 1. LIMITATION ON USE. ____________________________________________________________________ 8 SECTION 2. CASH OUT OPTION. _____________________________________________________________________ 9 ARTICLE IX - MANAGEMENT ANNUAL LEAVE ________________________________________________________ 9 SECTION 1 ___________________________________________________________________________________ 9 ARTICLE X - OTHER PAID LEAVES _________________________________________________________________ 10 SECTION 1. CITY MANAGER GRANTED LEAVES __________________________________________________________ 10 SECTION 2. COUNCIL GRANTED LEAVE _______________________________________________________________ 10 SECTION 3. EMPLOYEE'S TIME OFF TO VOTE ___________________________________________________________ 10 SECTION 4. LEAVES OF ABSENCE; DEATH IN IMMEDIATE FAMILY ______________________________________________ 10 SECTION 5. JURY DUTY; LEAVE OF ABSENCE ____________________________________________________________ 10 2 SECTION 6. SUBPOENAS _________________________________________________________________________ 10 ARTICLE XI - OTHER LEAVE PROVISIONS ___________________________________________________________ 11 SECTION 1. DISABILITY. __________________________________________________________________________ 11 SECTION 2. OTHER UNPAID LEAVES. _________________________________________________________________ 11 SECTION 3. ACCRUED VACATION CREDITS. _____________________________________________________________ 11 SECTION 4. APPROVAL OF DEPARTMENT HEAD. _________________________________________________________ 11 SECTION 5. APPROVAL BY CITY MANAGER _____________________________________________________________ 11 SECTION 6. ABSENCE WITHOUT LEAVE. _______________________________________________________________ 11 SECTION 7. LEAVE OF ABSENCE; DEATH OUTSIDE THE IMMEDIATE FAMILY. _______________________________________ 11 SECTION 8. MILITARY LEAVE OF ABSENCE. _____________________________________________________________ 11 ARTICLE XII - VOLUNTARY CATASTROPHIC LEAVE PROGRAM _________________________________________ 11 SECTION 1. __________________________________________________________________________________ 11 SECTION 2. __________________________________________________________________________________ 12 SECTION 3. __________________________________________________________________________________ 12 SECTION 4. __________________________________________________________________________________ 12 SECTION 5. __________________________________________________________________________________ 13 SECTION 6. __________________________________________________________________________________ 13 ARTICLE XIII - ADDITIONAL COMPENSATION FOR BC CLASSIFICATIONS _________________________________ 13 ARTICLE XIV - EXCESS BENEFIT REIMBURSEMENT ___________________________________________________ 14 SECTION 1. __________________________________________________________________________________ 14 ARTICLE XV - PHYSICAL EXAMS __________________________________________________________________ 15 ARTICLE XVI - BENEFIT PROGRAMS _______________________________________________________________ 15 SECTION 1. HEALTH PLAN - ACTIVE EMPLOYEES ______________________________________________________ 15 SECTION 2. DUAL COVERAGE. _____________________________________________________________________ 16 SECTION 3 DENTAL BENEFITS ______________________________________________________________________ 16 SECTION 4. VISION CARE. ________________________________________________________________________ 16 SECTION 5. EMPLOYEE ASSISTANCE PLAN _____________________________________________________________ 16 ARTICLE XVII – RETIREMENT MEDICAL PLAN _______________________________________________________ 17 SECTION 1. RETIREE MEDICAL COVERAGE FOR UNIT EMPLOYEES HIRED BEFORE JANUARY 1, 2004: ______________________ 17 SECTION 2. 20-YEAR VESTING FOR RETIREE MEDICAL COVERAGE FOR UNIT EMPLOYEES HIRED ON OR AFTER JANUARY 1, 2004: _ 17 ARTICLE XIII – BASIC LIFE INSURANCE _____________________________________________________________ 17 ARTICLE XIX– SUPPLEMENTAL LIFE INSURANCE _____________________________________________________ 17 ARTICLE XX– LONG TERM DISABILITY INSURANCE ___________________________________________________ 18 ARTICLE XXI - EFFECTIVE DATE OF BENEFIT COVERAGE FOR NEW EMPLOYEES ____________________________ 18 ARTICLE XXII-WORKERS’ COMPENSATION _________________________________________________________ 18 ARTICLE XXIII- RETIREMENT PENSION PLANS _______________________________________________________ 18 SECTION 1. SAFETY PERS RETIREMENT FORMULA. _______________________________________________________ 18 SECTION 2. STATUS DETERMINATION ________________________________________________________________ 19 SECTION 3. EMPLOYER CONTRIBUTIONS TO 457 PLAN _____________________________________________________ 19 ARTICLE XXIV - MISCELLANEOUS EMPLOYMENT-RELATED EXPENSES ___________________________________ 20 SECTION 1. STATION HOUSE FUND. _________________________________________________________________ 20 SECTION 2. NON-FOOD HOUSE ITEMS _______________________________________________________________ 20 3 SECTION 3. PER DIEM TRAVEL EXPENSES FOR CITY BUSINESS ________________________________________________ 20 SECTION 4. PARKING ___________________________________________________________________________ 20 ARTICLE XXV – WORK ASSIGNMENTS _____________________________________________________________ 20 ARTICLE XXVI - FULL UNDERSTANDING ____________________________________________________________ 20 SECTION 1 __________________________________________________________________________________ 20 SECTION 2. SEVERABILITY. ________________________________________________________________________ 20 SECTION 3. __________________________________________________________________________________ 21 SECTION 4. __________________________________________________________________________________ 21 SECTION 5. __________________________________________________________________________________ 21 ARTICLE XXVII - DURATION _____________________________________________________________________ 21 ARTICLE XXVIII- 48/96 WORK SCHEDULE __________________________________________________________ 21 APPENDIX A__________________________________________________________________________________ 23 4 CITY OF PALO ALTO AND PALO ALTO FIRE CHIEFS’ ASSOCIATION PREAMBLE This Memorandum of Agreement between the City of Palo Alto, hereinafter referred to as the "City", and the Palo Alto Fire Chiefs’ Association, hereinafter referred as the "Association", has been prepared and entered into in accordance with Title I, Division 4, Chapter 10, Sections 3500- 3510 of the California Government Code and Chapter 12 of the City of Palo Alto Merit System Rules and Regulations. ARTICLE I - RECOGNITION Section 1. The City recognizes the Association as the exclusive representative of an employee group consisting solely of the classifications of Battalion Chief 56-hour workweek, and Battalion Chief 40-hour workweek who are regularly employed by the City. ARTICLE II - NO DISCRIMINATION Section 1. The Association and the City hereby agree that there shall be no discrimination because of race, color, age, disability, sex, national origin, sexual orientation, political or religious affiliation or any other basis recognized by federal, state or local law under this Agreement. There shall be no discrimination in employment conditions or treatment of employees on the basis of membership or nonmembership in the Association, or participation in the lawful activities of the Association. Section 2. The Association and the City hereby agree to protect the rights of all employees to exercise their free choice to join the Association and to abide by the express provisions of applicable State and local laws. ARTICLE III - PAYROLL DEDUCTIONS Section 1. The City shall deduct Union membership dues assessments and insurances authorized by the Union. This will be accomplished by payroll deductions from the bi-weekly pay of member employees. The dues deduction must be authorized in writing by the employee on a Union authorization card. The Union will be the custodian of records for individual employee membership and dues deduction forms. The Union will maintain all authorizations for dues deduction, signed by the individual from whose salary or wages the deduction or reduction is to be made. The City will 5 direct employee requests to cancel or change deductions to the Association. The City shall remit the deducted dues to the Association as soon as possible after deduction. Section 2. Certification of Union Membership. The Union agrees to provide the City an initial certified list of members and statement that the Association has and will maintain written authorizations signed by the individuals from whose wages the Union dues deductions are to be made. From that point forward the Union will update the list whenever there are changes. Section 3. Indemnification. The Union shall indemnify and hold the City harmless against any liability arising from any claims, demands, or other action relating to this article. The Union shall comply with all statutory and legal requirements with respect to this article. ARTICLE IV - NO STRIKES Section 1. The Association, its representatives, or members, shall not engage in or cause, instigate, encourage, sanction, or condone a strike, withholding of services, leave of absence abuse, work stoppage or work slowdown of any kind against the City of Palo Alto or its citizens by employees covered under this Agreement. No employee shall refuse to cross any picket line in the conduct of Fire Department business, nor shall the Association, its representatives or members discriminate in any way toward anyone who refuses to participate in a strike, or any of the job actions cited above. ARTICLE V - SALARY PROVISIONS Section 1. Salary Range Adjustments. a) The base wage rates of the bargaining unit classifications will be set forth in Appendix A of this MOA. b) Base Salary: Effective the first full pay period following Council adoption, a three percent (3%) salary increase will be applied to the salary ranges for all represented classes. c) Market Increase: Effective the first full pay period following Council adoption, a two and a half percent (2.5%) salary increase will be applied to the salary ranges for all represented classes. d) Base Salary: Effective the first full pay period following July 1, 2019, a three percent (3%) salary increase will be applied to the salary ranges for all represented classes. e) Base Salary: Effective the first full pay period following July 1, 2020, a three percent (3%) salary increase will be applied to the salary ranges for all represented classes. 6 f) Total Compensation and Survey Database: Management and the Union have agreed to a compensation survey database structure. Survey Cities include: Alameda, Berkeley, Fremont, Hayward, Menlo Park Fire District, Milpitas, Mountain View, Redwood City, Pleasanton, San Jose, San Mateo, San Ramon Fire District, Santa Clara, Santa Clara County and South San Francisco. Compensation Criteria includes: top step salary, maximum longevity, maximum education, uniform allowance, EMT differential, Hazmat differential, deferred compensation, employee pick up of employer pension costs (Negative EPMC), and maximum City paid benefits (medical, dental, vision, life insurance, LTD, and EAP). 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. Section 2. EMT Differential. The former EMT differential of 3.0% was rolled into base pay. This one time conversion to base pay, shall constitute the City’s incentive payment for EMT skills. This conversion was cost neutral to the City. Section 3. 40-hour Work Week Assignment Differential. Employees assigned to a 40-hour workweek schedule will be paid a differential of five percent (5%) of base salary in-lieu of holiday pay differential which 56-hour shift Battalion Chiefs receive. Section 4. Out of County Strike Team Pay. A Battalion Chief sent on out of County strike team duty will receive the following compensation only if the City is reimbursed from the state or federal government for the labor costs incurred by the City. Compensation to the employee will not exceed the rate for which the City is reimbursed by the State of California or other external entity, excluding reimbursements for other labor costs (e.g. workers compensation, administrative expense, etc.). A Battalion Chief on their regular duty shift deployed on an out of County strike team will be eligible for compensation at their normal hourly rate (1.0 hourly rate), assuming a regular 56 hour schedule. A Battalion Chief on non-regular duty shift days deployed on an out of County strike team will be eligible for compensation at a rate of 1.5 of their normal hourly rate. For 40 hour Battalion Chiefs deployed on an out of County strike team, any out of County strike team compensation will be calculated at a 56 hour Battalion Chief Schedule hourly rate. Payment for out of county strike team duty will be calculated based on the number of twenty- four hour shifts worked and prorated for any partial shifts. A Personnel Action Form will be completed in a timely manner to process this payment. The amount of the payment will be calculated in a manner described above. If the City is not 7 reimbursed, no payment is due to the employee. If the City is reimbursed in part, a prorated payment will be calculated based on the reimbursement rate. As outlined above, compensation to the employee will not exceed the rate for which the City is reimbursed by the State of California or other external entity. ARTICLE VI – HOLIDAYS Section 1. Named Holidays. The following holidays are recognized as municipal holidays for pay purposes and non-shift employees shall have these days off with pay, except as otherwise provided in these rules: January 1 Veteran’s Day, November 11 Third Monday in January Thanksgiving Day Third Monday in February Day after Thanksgiving Day Last Monday in May December 25 July 4th Either December 24 or December 31 as provided below First Monday in September Second Monday in October Section 2. 56-Hour Work Week Assignments. One hundred forty nine and one half (149.5) hours is the total amount of holiday hours paid annually to an employee divided by 26 payroll periods which equals 5.75. Shift personnel shall receive pay in lieu of taking paid leave for accrued holidays. Such paid hours are in biweekly amount of 5.75 holiday hours. Holiday hours are prorated and accrued based on hours actually worked. If employees elect to be paid for these holiday hours at any time before the scheduled payoff they must have sufficient hours in their holiday account and must complete the Cash-out Request Form. Accrued holiday balances of shift employees will be automatically paid off in the months of June and December. Section 3. 40-Hour Work Week Assignments. Employees assigned to a 40-hour workweek schedule will receive paid holidays in accordance with Sections 517 and 518 of the Merit System Rules and Regulations. ARTICLE VII - VACATION ACCRUAL Section 1. Vacation will be accrued when an employee is in a pay status and will be credited on a bi-weekly basis. Such accrual balance and credit may not exceed three times the annual rate of accrual. Accrual rates are by work week assignments as indicated in Section 1 and Section 2 below. Section 2. 56-Hour Workweek Assignments. Employees assigned to a 56-hour workweek schedule (24- hour shift) will accrue vacation at the following rate for continuous service 8 performed in a pay status. a) For employees completing less than four (4) years continuous service, the accrual rate shall be five (5) duty shifts per year. b) For employees completing four (4), but less than nine (9) years continuous service, the accrual rate shall be eight (8) duty shifts per year. c) For employees completing nine (9), but less than fourteen (14) years continuous service, the accrual rate shall be ten (10) duty shifts per year. d) For employees completing fourteen (14), but less than nineteen (19) years continuous service, the accrual rate shall be eleven (11) duty shifts per year. e) For employees completing nineteen (19) or more years continuous service, the accrual rate shall be twelve (12) duty shifts per year. Section 3. 40-Hour Workweek Assignments. Personnel assigned to a 40-hour workweek schedule will accrue vacation at the following rate for continuous service performed in a pay status. a) For employees completing less than four (4) years continuous service, the accrual rate shall be eighty (80) hours per year. b) For employees completing four (4), but less than nine (9) years continuous service, the accrual rate shall be one-hundred twenty (120) hours per year. c) For employees completing nine (9), but less than fourteen (14) years continuous service, the accrual rate shall be one-hundred sixty (160) hours per year. d) For employees completing fourteen (14), but less than nineteen (19) years continuous service, the accrual rate shall be one-hundred eighty (180) hours vacation leave per year. e) For employees completing nineteen (19) or more years continuous service, the accrual rate shall be two- hundred (200) hours vacation leave per year. ARTICLE VIII - VACATION CASH OUT Section 1. Limitation on Use. Employees may not use more than three times their annual rate of accrual in any calendar year period provided, however, that the Chief may grant exceptions to this limitation. 9 Section 2. Cash out Option. a) Once each calendar year, employees are eligible to cash out vacation accrual balances in excess of 80 hours. An employee may cash out a minimum of eight (8) hours to a maximum of 120 hours of accrued vacation provided employee has taken 80 vacation hours in the previous 12 months and has followed the election procedures set forth in this section. b) Employee must elect the number of vacation hours they will cash-out during the next calendar year, up to the maximum of 120 hours. For the 2012 calendar vacation year, employees will make their election for vacation hours to cash out no later than November 1, 2012. The election will apply only to vacation hours that are accrued in the next calendar year and that are eligible for cash-out. c) The election to cash-out vacation hours in each designated year will be irrevocable. This means that employees who elect to cash-out vacation hours must cash-out the number of accrued hours pre-designates on the election form. d) Employees who do not elect a cash-out amount by November of the prior calendar year will be deemed to have waived the right to cash out any leave in the following tax year and will not be eligible to cash-out vacation hours in the next tax year. e) Employees who elect cash-out amount may request a cash-out at any time in the designated tax year by submitting a cash-out form to payroll. Payroll will complete the cash-out form upon request, provided the requested cash-out amount has accrued and is consistent with the amount the employee pre-designated. If the full amount of hours designated for cash-out is not available at the time of cash-out, the maximum available will be paid. For employees who have not requested cash-out of the elected amount by November 1 of year, Payroll will automatically cash- out the elected amount in a paycheck issued on or after the payroll date including November 1. ARTICLE IX - MANAGEMENT ANNUAL LEAVE Section 1. Forty (40) hour and fifty-six (56) hour workweek employees not eligible for overtime shall be credited at the beginning of each calendar year with eighty (80) hours of annual leave which may be taken as paid time off, added to vacation accrual (subject to vacation accrual limitations), taken as cash or taken as deferred compensation. Entitlement under this provision will be reduced on a prorated basis for part-time status, or according to the number of months in paid status during the calendar year. Unused balances as of the end of the calendar year will be paid in cash, unless a different option as indicated above is elected by the employee. The Management Annual Leave accrual will be changed to an annual accrual rather than fiscal year. Effective July 1, 2012, employees will be credited with forty (40) hours of management 10 annual leave to be used by December 31, 2012 or automatically will be cashed out. Effective January 1, 2012, and every January 1 thereafter, employees will be credited with eighty (80) hours of management annual leave to be used by December 31st or automatically will be cashed out. ARTICLE X - OTHER PAID LEAVES Section 1. City Manager Granted Leaves. The City Manager may grant a regular employee under his control a leave of absence with pay for a period not exceeding thirty calendar days for reasons he deems adequate and in the best interest of the City. Section 2. Council Granted Leave. The City Council may grant a regular employee a leave of absence with pay for a period not to exceed one year for reasons the Council considers adequate and in the best interest of the City. Section 3. Employee's Time Off to Vote. Time off with pay to vote at 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 4. Leaves of Absence; Death in Immediate Family. Leave of absence with pay of one shift for 56-hour shift employees with provision for approval of one additional shift for travel outside the area may be granted an employee by the Chief in the event of death in the employee's immediate family, which is defined for purposes of this section as wife, husband, son, son-in-law, daughter, daughter-in-law, father, mother, brother, brother-in-law, sister, sister-in-law, mother- in-law, father-in-law, step-father, step-mother, step- sister, step-brother, grandfather, grandfather-in-law, grandmother, grandmother-in-law, uncle, aunt, 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. Requests for leave in excess of two shifts shall be subject to the approval of the City Manager. Employees assigned to a 40-hour work week are eligible for leave of absence granted by the Chief with pay for three days in the event of death in the employee’s immediate family which is defined above. Section 5. Jury Duty; Leave of Absence. Employees required to report for jury duty 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 for such duties other than mileage or subsistence allowances within thirty days from the termination of his or her jury service. Section 6. Subpoenas. Employees required to answer subpoenas as a witness for the City of Palo Alto or for a plaintiff where the City of Palo Alto is a defendant shall not lose pay or benefits for work time lost to answer depositions or to appear in court. 11 ARTICLE XI - OTHER LEAVE PROVISIONS Section 1. 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 physician's verification including diagnosis and medical work restriction. Section 2. Other Unpaid Leaves. Leaves of absence without pay may be granted in cases of personal emergency or when such absences would not be contrary to the best interest of the City. Non-disability prenatal and/or postpartum leave is available under this provision, but such leave shall not begin more than six months prenatal nor extend more than six months postpartum. Section 3. Accrued Vacation Credits. 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 not be unreasonably denied. In order to avoid misunderstandings, all leaves without pay must be in writing to be effective. Section 4. Approval of Department Head. Leave of absence without pay for one week or less may be granted by the department head, depending on the merit of the individual case. Section 5. Approval by City Manager. Leave of absence without pay in excess of one week's duration may be granted by the City Manager on the merit of the case, but such leave shall not exceed twelve months' duration. Section 6. Absence Without Leave. Unauthorized leave of absence shall be considered to be without pay, and reductions in the employee's pay shall be made accordingly. Unauthorized leave of absence may result in termination of employment. Section 7. Leave of Absence; Death Outside the Immediate Family. Leave without pay may be granted a regular employee by his/her department head in the event of death to family members other than one of the immediate family, such leave to be granted in accordance with Section 2 and Section 4. Section 8. Military Leave of Absence. State law shall govern the granting of military leaves of absence and the rights of employees returning from such absence. ARTICLE XII - VOLUNTARY CATASTROPHIC LEAVE PROGRAM Section 1. The City of Palo Alto has established a Firefighter Voluntary Leave Program to provide FCA employees the opportunity to donate their accrued vacation time to assist fellow members of FCA either due to: (a) an employee’s own verifiable non-industrial catastrophic illness or injury (as defined herein) or (b) in order to care for a member of the employee’s immediate family (spouse, child, parent or registered domestic partner suffering from a verifiable catastrophic illness or injury) and have exhausted or will presently exhaust all of their paid leave. 12 Section 2. In order to be eligible to receive donated leave, an employee must have a catastrophic illness or injury or an employee’s immediate family member must have a catastrophic illness or injury that requires the employee to provide full-time care for this family member. Care will be taken to emphasize the voluntary nature of the plan and to insure confidentiality of employee participants and medical conditions (where applicable). Section 3. A Firefighter Voluntary Leave Sharing Program has been established to accept donations of vacation in accordance with the Program’s guidelines. All donations shall be: a) Voluntary b) Irrevocable c) Confidential, unless disclosure is required by law d) In whole hour increments of at least four (4) hours, with the hours donated being converted to donee hours based on the donee’s salary rate (so that there will be no cost to the City due to salary differential). e) The employee shall be required to exhaust all other types of leave to request donated leave f) It is understood that employees seeking or receiving leave under this program will apply for long- term disability benefits for which they may be eligible g) Where any of the period during which an employee receives donated leave is designated as family leave under the California Family Rights Act (CFRA/Family Medical Leave Act (FMLA), the employee will be eligible for continuation of medical and other available benefits during that the family leave period (for up to 12 weeks), in accordance with the requirements of those laws. If the employee receiving donated leave is not eligible for CFRA/FMLA benefit continuation, or after the employee has exhausted the available CFRA/FMLA leave period, the employee will need to pay the premiums for continued medical and other available benefits if the employee chooses to continue such coverage through the City h) If the donation request is based on the need for an employee to care for an immediate family member, as defined above, the family member must require full-time care by the employee. Certification of this requirement by a health care professional is required i) The maximum donated time a donee may receive is 12 months (if available). j) Applications to donate leave or receive leave under this Program are made to the Human Resources Department k) The tax treatment of donation or receipt of vacation under this section is governed by the IRS and not the City. Section 4. FCA members interested in donating leave or in applying to receive donated leave shall complete forms provided by the Human Resources Department. If an applicant for leave is found to meet the criteria set forth herein, Human Resources will determine the availability of and (as applicable) allocation of donated paid leave. Payroll will be notified in writing of the number of hours to be deducted from each donating employee’s vacation balance and transferred to the donee employee(s). 13 Section 5. The City reserves the right to modify or terminate this program at any time. Section 6. Catastrophic Illness or Injury (also referred to as “medical emergency” in Revenue Ruling 90-29 and Sections 801(c) and 812 of the Merit Rules and Regulations): A non- occupational medical condition of an employee that will require the prolonged absence of the employee from duty and which will result in a substantial loss of income to the employee because the employee will have exhausted all paid leave available apart from the Voluntary Employee Leave sharing Program. Non-disability postpartum leave as referenced in Merit Rule 801(b) shall not be considered a catastrophic illness or injury under this Policy. ARTICLE XIII - ADDITIONAL COMPENSATION FOR BC CLASSIFICATIONS POTENTIAL BATTALION CHIEF EXTRA SHIFT COVERAGE Battalion Chiefs who back fill for an operations shift (or shifts) for a 56-hour work week Battalion Chief will be provided additional compensation for the extra shift coverage, provided that the extra shift requires working hours beyond regularly scheduled hours. Extra Shift Coverage Eligibility  Extra shift coverage pay applies to the level of Battalion Chief only and is not intended as compensation for Battalion Chiefs to backfill a lower classification.  A minimum of eight (8) continuous hours of the extra shift coverage must be worked to be eligible for compensation. After the minimum of eight (8) continuous hours is met, the Battalion Chief will be paid for the entire shift worked. Extra Shift Coverage Pay Rate  Compensation for the extra shift coverage by a 56-hour or 40-hour Battalion Chief will be paid at the 56-hour straight-time rate of the Battalion Chief performing the back fill. First Rights of Refusal  Battalion Chiefs shall be provided first rights of refusal for the extra shift coverage. If no Battalion Chiefs are available to back fill the extra coverage shift, the shift will be assigned to fire personnel at a lower classification in accordance with the standard protocols of the department. Extra Shift Coverage Pay Not PERSable  All pay under this extra shift coverage provision will be reported to CALPERS by the City of Palo Alto in a manner that excludes such pay from PERSable income. As such, the extra shift coverage pay is not subject to CALPERS contributions by the employer or employee and is not included as a factor in the employee’s final compensation for pension purposes. Fire Chief Discretion  In accordance with management rights provisions, the Fire Chief maintains discretion to approve, modify or disapprove extra shift coverage assignments. 14 FLSA Exempt Status  Nothing in the extra shift coverage provision is intended to impact the FLSA-exempt status of Battalion Chiefs. Battalion Chiefs remain FLSA-exempt and are therefore not eligible for overtime pay or compensatory time. ARTICLE XIV - EXCESS BENEFIT REIMBURSEMENT Section 1. The benefit provided by this Article is designed to meet the requirements of Section 125 of the Internal Revenue Code. Every calendar year, each employee will be provided with $2,500 that they can designate among the following options: a) Medical Flexible Spending Account (Medical FSA). Provides reimbursement for excess medical/dental/vision, or expenses that are incurred by employees and their dependents which are not covered or reimbursed by any other source, including existing City-sponsored plans. This includes prescribed medications and co-payments as specified in applicable federal law. b) Dependent Care Flexible Spending Account (Dependent Care FSA). Provides reimbursement for qualified dependent care expenses under the City's Dependent Care Assistance Program (DCAP), subject to the limits specified in applicable federal law. 1) Dependent care expenses not reimbursed under this section may be eligible for reimbursement under the City Voluntary Dependent Care FSA program. However, the maximum amount reimbursed under the Voluntary Dependent Care FSA program will be reduced by any amount reimbursed under the Excess Benefit Plan. c) Professional Development Employees may use these funds for professional development purposes on a taxable basis to the extent such expenses (e.g., job-related training and education, seminars, training manuals, etc.) are not paid or reimbursed under any other plan of the City. d) Deferred Compensation. Provides a one-time contribution to the employee’s City- sponsored I.R.C. § 457 Deferred Compensation plan with either ICMA-RE or Mass Mutual, subject to the contribution limitations of applicable law. Amounts designated by employees to either the Medical FSA, Dependent Care FSA, or Professional Development options are done so on a “use –it-or-lose-it” basis. This means that any amounts designated and not used by the end of the calendar year (or end of the extended grace period for the medical FSA) will be forfeited by the employee and returned to the plan. Specified amounts under this benefit will be applied on a pro-rata basis for employees 15 who are part-time or who are in FCA pay status for less than the full fiscal year. Such benefits will be pro-rated in the first year of employment (based on hire date) but will not be pro-rated upon separation of employment. ARTICLE XV - PHYSICAL EXAMS Physical fitness medical examinations for all represented employees will be provided in accordance with the Fire Department Physical Fitness Program General Order. ARTICLE XVI - BENEFIT PROGRAMS Section 1. Health Plan - ACTIVE EMPLOYEES: During the term of this contract, the maximum City contribution towards medical premiums for eligible full time employees per employee category shall be up to a maximum of the following for any plan: Medical Premium Category PEMHCA Contribution* Total Maximum City Contribution (inclusive of PEMHCA contribution) effective from time of ratification through December 31, 2018 Total Maximum City Contribution (inclusive of PEMHCA contribution) effective January 1, 2019 Employee Only $133.00 $804 $840 Employee plus one $133.00 $1606 $1680 Employee Family $133.00 $2088 $2180 The City’s total maximum contribution towards medical premiums for eligible part time employees shall be prorated based on the number of hours per week the part-time employee is assigned to work. *Any increases to the PEMHCA minimum during the term of this contract will result in a corresponding decrease to the amount of the additional City contribution, so that the total maximum City contribution never exceeds the Total Maximum City Contribution described above. If the State of California or federal government requires the City to participate and contribute toward coverage under any medical plan outside of PEMHCA including but not limited to the Affordable Care Act, 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 parties will meet and confer over the impact of such change on matters within the scope of representation before implementing any change. 16 a. Active employee domestic partners whose domestic partnership is registered with the State of California may add their domestic partner as a dependent to their elected health plan coverage if the domestic partner is registered with the Secretary of State. Active employee domestic partners whose domestic partnership is not registered with the State but 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 90% of the average monthly premium cost of individual coverage under the PEMHCA health plans in 2016. Effective with the first pay period including January 1, 2017, a stipend of two hundred eighty four ($284) per month toward the cost of an individual health plan will be provided. Evidence of premium payment will be required with request for reimbursement. Section 2. Dual Coverage. When a City employee is married to another City employee each shall be covered only once (as an individual or as a spouse of the other City employee, but not both) and dependent children, if any, shall be covered only by one spouse. Section 3 Dental Benefits a. Level of Benefits. The City will maintain the present level of benefits on the City- sponsored dental program. Maximum benefits per calendar year shall be $2,000. b. Premiums. The City shall pay all premium payments or equivalent self-insured program charges on behalf of employees and dependents who are eligible and enrolled for coverage under the existing dental plan. Dependents will include domestic partners, as defined under Article XVII Section 3. c. Orthodontia Benefit Maximum. The City will provide a 50% of reasonable charges, $2,000 lifetime maximum orthodontic benefit for representation unit employees and their dependents. Section 4. Vision Care. The City offers vision care coverage for employees and dependents. Coverage is equivalent to $20 Deductible Plan A under the Vision Service Plan, with monthly premiums paid by the employer. Dependents include domestic partners, as defined under Article XVII Section 1. Section 5. Employee Assistance Plan. The Employee Assistance Plan (EAP) provides employees with confidential personal counseling, work and family related issues, eldercare, substance abuse, etc. In addition, EAP programs provide a valuable tool for supervisors to refer troubled employees to professional outside help. This service staffed by experienced clinicians is available to employees and their dependents by calling a toll-free phone line 24 hours a day, seven days a week. Guidance is also available online. 17 ARTICLE XVII – RETIREMENT MEDICAL PLAN Section 1. Retiree medical coverage for Unit employees hired before January 1, 2004: Monthly City-paid premium contributions for a retiree-selected PEMHCA optional plan will be made in accordance with the Public Employees' Medical and Hospital Care Act Resolution for employees that retire on or before December 31, 2006. Effective January 1, 2007 for an employee retiring on or after that date the City will pay up to the monthly medical premium for the 2nd most expensive plan offered to FCA employees among the existing array of plans. However, the City contribution for an employee hired before January 1, 2004 who retires on or after December 1, 2011 shall be the same contribution amount it makes for active City employees. Effective upon ratification and adoption of this Agreement, the City shall provide active unit employees who were hired before January 1, 2004 with a one-time opportunity to opt-in to retiree health benefits provided under California Government Code section 22893. Eligible employees who wish to exercise this option shall inform the Human Resources Department of their election in writing no later than 90 days following the ratification and adoption of this Agreement. Section 2. 20-Year Vesting for Retiree Medical Coverage for Unit Employees Hired On Or After January 1, 2004: The retiree health benefit provided in California Government Code section 22893 shall apply to all employees hired on or after January 1, 2004. Under this law, an employee is eligible to receive Fifty (50) percent of benefit after ten (10) years; each additional service credit year after Ten (10) years will increase employer credit by Five (5%) percent until Twenty (20) years is reached at which time employee is eligible for One Hundred (100%) percent of annuitant-only coverage and Ninety (90%) percent of the additional premium for dependents. ARTICLE XIII – BASIC LIFE INSURANCE The City shall provide a basic life and AD & D insurance plan in an amount equal to the employee's annual base compensation (rounded to the next highest $1,000). ARTICLE XIX– SUPPLEMENTAL LIFE INSURANCE An employee may, at his/her cost, purchase additional life insurance and additional AD&D coverage. The total amount of life insurance available to the employee is $325,000 and the total amount of AD&D coverage available is $325,000. 18 ARTICLE XX– LONG TERM DISABILITY INSURANCE In lieu of providing long-term disability insurance program to eligible employees, the City shall add $40.00 per month to the base salary of eligible employees. This $40.00 per month shall not be calculated into the labor market salary comparison. ARTICLE XXI - EFFECTIVE DATE OF BENEFIT COVERAGE FOR NEW EMPLOYEES For newly-hired regular employees coverage begins on the first day of the month following date of hire for the health plan, dental plan, vision care plan, life insurance and long term disability plans if these benefits are elected. ARTICLE XXII-WORKERS’ COMPENSATION Persons on disability will be required to appear or otherwise report at regular two-week intervals to the Fire Chief or designate to discuss his/her status and ability to return to full or restricted work status. This section is not meant to unreasonably restrict employee's activities so long as such activities are cleared by the treating physician, treating program or alternative treatment program is maintained and employee is available for full or restricted duty as soon as medical clearance can be received. ARTICLE XXIII- RETIREMENT PENSION PLANS Section 1. Safety PERS Retirement Formula. a. Safety Pension Group A: 3%@50 Safety Retirement: The City will continue the present benefits under the Public Employees' Retirement System (PERS) "3 percent at 50 (3%@50)" formula for employees hired before the effective date of the “3 percent at Section 2. 55” (3%@55) formula for new hires as described herein. The final year compensation for employees hired under the 3% at 50 formula will continue to be “Single highest year” or the highest average annual compensation earnable by the member during one (1) year of employment immediately preceding retirement or the one- year period otherwise designated by the member (Government Code section 20042). b. Safety Pension Group B: 3%@55 Safety Retirement: Effective December 7, 2012, the City amended its contract with CalPERS to provide employees hired on or after that date who are not “new members” of CalPERS, as defined in the Public Employees’ Pension Reform Act (after referred to as “classic” CalPERS members) with the CalPERS retirement formula three percent of final salary at age 55 (“3%@55”), with the final salary determination for such employees of “3 highest consecutive years” based on the highest average annual compensation earnable by the member during three (3) consecutive years of employment immediately preceding retirement or the three-year period otherwise designated by the member (Government Code section 20037). 19 c. Safety Pension Group C: 2.7% at Age 57 Safety Retirement: Employees hired on or after January 1, 2013 meeting the definition of “new member” under the Public Employees’ Pension Reform Act (Gov’t. Code s. 7522 et seq.) shall be subject to all of the provisions of that law, including but not limited to the two point seven percent at age 57 (2.7%@57) retirement formula with a three year final compensation period. d. Safety PERS Member Contribution. 1. Employees in all classifications in Pension Groups A and B described above shall pay a total of 9% towards the PERS member contributions by payroll deduction. 2. Employees in all represented classes in Pension Group C described above shall pay the employee contribution required by the Public Employees’ Pension Reform Act, currently calculated at fifty percent (50%) of the normal cost. 3. When employees pay their PERS Member Contribution pursuant to section 2a and 2b above, the City will provide for member contributions to be made as allowed under provisions of IRS Code Section 414(h)(2). e. Additional Employee PERS contributions: In addition to the PERS member contribution as required under section 2d 1, 2 and 3 above, all employees in pension groups a, b and c shall contribute the additional following contributions: 1. All employees regardless of pension formula in this unit shall, in addition to the Member Contribution required, shall pay an additional 3% towards the Employer share of Pension regardless of pension formula through a CalPERS 20516 contract amendment. 2. Effective the first full pay period following July 1, 2020, all employees regardless of pension formula in this unit shall, in addition to the Member Contribution required, pay an additional 1% towards the Employer share of Pension for a total of 4%. Section 2. Status Determination. An employee’s membership in and designation as Safety for CalPERS pension plan purposes shall be determined based on applicable California law. Section 3. Employer Contributions to 457 Plan Effective the first full pay period following July 1, 2020, the City will contribute the equivalent of 1% of the employee’s pensionable salary into the 457 plan. Eligibility: 1. Employees must be enrolled in an eligible City sponsored 457 plan 2. Employees who reach the maximum as defined by the IRS will not receive additional contributions 3. Employee must be making PERS contributions 20 ARTICLE XXIV - MISCELLANEOUS EMPLOYMENT-RELATED EXPENSES Section 1. Station House Fund. The Station House Fund per year per shift employee shall be $100.00. Section 2. Non-Food House Items. The City agrees to furnish and maintain each fire station with the following non-food house fund items: TV purchase and repair. Kitchen cooking utensils, small kitchen appliances and other specific items to be determined by mutual agreement of the parties will be purchased from the Station House Fund. Section 3. Per Diem Travel Expenses For City Business. Unless other mutually agreeable arrangements are made, representation unit employees who are required to travel away from the City on City business will receive travel expenses, according to City policies which are currently in effect. Section 4. Parking. Employees in represented classes assigned to Civic Center or adjacent work locations shall be entitled to free parking in the Civic Center Garage, or a commute incentive which will be subject to meet and confer. Employees hired after July 1, 1994 may initially receive a parking permit for another downtown lot subject to availability of space at the Civic Center garage. Light duty employees assigned to the Civic Center will receive Civic Center parking temporary permits for the duration of the light duty assignment. ARTICLE XXV – WORK ASSIGNMENTS Selection of and assignment to Training Battalion Chief (40-hour workweek) shall be based upon seniority, except where operational needs are determined by the Fire Chief or designee, the Fire Chief or designee reserves the right to assign personnel based on Fire Department needs. For purposes of this article, seniority shall be calculated from date of entry into the Battalion Chief classification. ARTICLE XXVI - FULL UNDERSTANDING Section 1. The Memorandum of Agreement contains the full and entire understanding of the parties regarding the matters set forth herein. Section 2. Severability. If any of the provision herein contained be rendered or declared invalid by reason of any State or Federal legislation, or by ruling of any court of competent jurisdiction, such invalidation of such part or portion of this Memorandum of Agreement shall not invalidate the remaining portions hereof, and they shall remain in full force and effect, insofar as such remaining portions are severable. 21 Section 3. It is the intent of the parties that ordinances, resolutions, rules and regulations enacted pursuant to this Memorandum of Agreement be administered and observed in good faith. Section 4. Nothing in this Memorandum of Agreement shall preclude the parties from mutually agreeing to meet and confer on any subject with the scope of representation during the term of this agreement. Section 5. Merit System Rules and Regulations During the term of this Memorandum of Agreement, Management may propose certain changes in the City Merit System Rules and Regulations. With regard to such changes which pertain to the representation unit, the parties agree to review, and upon request, meet and confer regarding the changes. ARTICLE XXVII - DURATION This Memorandum of Agreement shall become effective upon signing by the parties hereto, except that those provisions herein that have specific effective dates shall take effect on those dates regardless of signing date, once this Memorandum of Agreement is signed by the parties hereto. This Memorandum of Agreement shall expire June 30, 2018. ARTICLE XXVIII- 48/96 WORK SCHEDULE The regular schedule for 56 hour personnel will be under a “48/96” model. With the adoption of this “48/96” schedule the parties agreed to revise Fire department policy 205.6 typical workday and 1009.8.1 reporting for Duty-Holidays. 22 EXECUTED: FOR: FOR: FIRE CHIEFS ASSOCIATION CITY OF PALO ALTO James Keene, City Manager Rumi Portillo, Human Resources Director Tori Anthony, Sr. Human Resources Administrator Nicholas Raisch, Manager of Employee Relations and Training Geoffrey Blackshire, Deputy Fire Chief Maria Lagman, Sr. Accountant Maria Patino, Human Resources Representative Ryan Stoddard, President Local 1319 Nate Heydorff, Vice President Local 1319 Sunny Johnson-Gutter, Secretary Local 1319 APPENDIX A Non-Shift Job Code Classifications Grade Codes Hourly Rate Approx Monthly Salary Approx. Annual Salary 018 Battalion Chief 40-hour workweek 28 $92.26 $15,992 $191,901 015 Battalion Chief EMT 40-hour workweek 28E $94.78 $16,429 $197,142 2019 Battalion Chief EMT, Training 40-hour workweek 28E $94.78 $16,429 $197,142 Shift Job Code Classifications Grade Codes Approx Monthly Salary Approx. Annual Salary 116 Battalion Chief 56-hour workweek 030 $62.78 $15,235 $182,815 016 Battalion Chief EMT 56-hour workweek 030E $64.50 $15,652 $187,824 Non-Shift Job Code Classifications Grade Codes Hourly Rate Approx Monthly Salary Approx. Annual Salary 018 Battalion Chief 40-hour workweek 28 $95.03 $16,472 $197,662 015 Battalion Chief EMT 40-hour workweek 28E $97.63 $16,923 $203,070 2019 Battalion Chief EMT, Training 40-hour workweek 28E $97.63 $16,923 $203,070 Shift Job Code Classifications Grade Codes Approx Monthly Salary Approx. Annual Salary 116 Battalion Chief 56-hour workweek 030 $64.67 $15,693 $188,319 016 Battalion Chief EMT 56-hour workweek 030E $66.44 $16,123 $193,473 Non-Shift Job Code Classifications Grade Codes Hourly Rate Approx Monthly Salary Approx. Annual Salary 018 Battalion Chief 40-hour workweek 28 $97.89 $16,968 $203,611 015 Battalion Chief EMT 40-hour workweek 28E $100.56 $17,430 $209,165 2019 Battalion Chief EMT, Training 40-hour workweek 28E $100.56 $17,430 $209,165 Shift Job Code Classifications Grade Codes Approx Monthly Salary Approx. Annual Salary 116 Battalion Chief 56-hour workweek 030 $66.62 $16,166 $193,997 016 Battalion Chief EMT 56-hour workweek 030E $68.44 $16,608 $199,297 First full pay period following July 1, 2020 (3% Increase) Effective the first full pay period upon adoption (5.5% Increase) First full pay period following July 1, 2019 (3% Increase) Memorandum of Agreement City of Palo Alto and Palo Alto Fire Chiefs’ Association July 1, 2014 October 1, 2018– June 30, 202118 1 MEMORANDUM OF AGREEMENT Table of Contents PREAMBLE ____________________________________________________________________________________ 4 ARTICLE I - RECOGNITION _______________________________________________________________________ 4 SECTION 1. ___________________________________________________________________________________ 4 ARTICLE II - NO DISCRIMINATION _________________________________________________________________ 4 SECTION 1. ___________________________________________________________________________________ 4 SECTION 2 ___________________________________________________________________________________ 4 ARTICLE III - PAYROLL DEDUCTIONS _______________________________________________________________ 4 SECTION 1 ___________________________________________________________________________________ 4 SECTION 2. CERTIFICATION OF UNION MEMBERSHIP _______________________________________________________ 5 SECTION 3. INDEMNIFICATION ______________________________________________________________________ 6 ARTICLE IV - NO STRIKES ________________________________________________________________________ 6 SECTION 1 ___________________________________________________________________________________ 6 ARTICLE V - SALARY PROVISIONS _________________________________________________________________ 6 SECTION 1. SALARY RANGE ADJUSTMENTS. _____________________________________________________________ 6 SECTION 2. EMT DIFFERENTIAL _____________________________________________________________________ 7 SECTION 3. 40-HOUR WORK WEEK ASSIGNMENT DIFFERENTIAL _______________________________________________ 7 SECTION 4. OUT OF COUNTY STRIKE TEAM PAY. _________________________________________________________ 8 ARTICLE VI – HOLIDAYS _________________________________________________________________________ 8 SECTION 1. NAMED HOLIDAYS. _____________________________________________________________________ 8 SECTION 2. 56-HOUR WORK WEEK ASSIGNMENTS ________________________________________________________ 9 SECTION 3. 40-HOUR WORK WEEK ASSIGNMENTS. _______________________________________________________ 9 ARTICLE VII - VACATION ACCRUAL _________________________________________________________________ 9 SECTION 1. ___________________________________________________________________________________ 9 SECTION 2. 56-HOUR WORKWEEK ASSIGNMENTS ________________________________________________________ 9 SECTION 3. 40-HOUR WORKWEEK ASSIGNMENTS. ________________________________________________________ 9 ARTICLE VIII - VACATION CASH OUT ______________________________________________________________ 10 SECTION 1. LIMITATION ON USE. ___________________________________________________________________ 10 SECTION 2. CASH OUT OPTION. ____________________________________________________________________ 10 ARTICLE IX - MANAGEMENT ANNUAL LEAVE _______________________________________________________ 11 SECTION 1 __________________________________________________________________________________ 11 ARTICLE X - OTHER PAID LEAVES _________________________________________________________________ 11 2 SECTION 1. CITY MANAGER GRANTED LEAVES __________________________________________________________ 11 SECTION 2. COUNCIL GRANTED LEAVE _______________________________________________________________ 11 SECTION 3. EMPLOYEE'S TIME OFF TO VOTE ___________________________________________________________ 11 SECTION 4. LEAVES OF ABSENCE; DEATH IN IMMEDIATE FAMILY ______________________________________________ 12 SECTION 5. JURY DUTY; LEAVE OF ABSENCE ____________________________________________________________ 12 SECTION 6. SUBPOENAS _________________________________________________________________________ 12 ARTICLE XI - OTHER LEAVE PROVISIONS ___________________________________________________________ 12 SECTION 1. DISABILITY. __________________________________________________________________________ 12 SECTION 2. OTHER UNPAID LEAVES. _________________________________________________________________ 12 SECTION 3. ACCRUED VACATION CREDITS. _____________________________________________________________ 12 SECTION 4. APPROVAL OF DEPARTMENT HEAD. _________________________________________________________ 12 SECTION 5. APPROVAL BY CITY MANAGER _____________________________________________________________ 13 SECTION 6. ABSENCE WITHOUT LEAVE. _______________________________________________________________ 13 SECTION 7. LEAVE OF ABSENCE; DEATH OUTSIDE THE IMMEDIATE FAMILY. _______________________________________ 13 SECTION 8. MILITARY LEAVE OF ABSENCE. _____________________________________________________________ 13 ARTICLE XII - VOLUNTARY CATASTROPHIC LEAVE PROGRAM _________________________________________ 13 SECTION 1. __________________________________________________________________________________ 13 SECTION 2. __________________________________________________________________________________ 13 SECTION 3. __________________________________________________________________________________ 13 SECTION 4. __________________________________________________________________________________ 14 SECTION 5. __________________________________________________________________________________ 14 SECTION 6. __________________________________________________________________________________ 14 ARTICLE XIII - ADDITIONAL COMPENSATION FOR BC CLASSIFICATIONS _________________________________ 14 ARTICLE XIV - EXCESS BENEFIT REIMBURSEMENT ___________________________________________________ 15 SECTION 1. __________________________________________________________________________________ 15 ARTICLE XV - PHYSICAL EXAMS __________________________________________________________________ 16 ARTICLE XVI - BENEFIT PROGRAMS _______________________________________________________________ 16 SECTION 1. HEALTH PLAN - ACTIVE EMPLOYEES ______________________________________________________ 16 SECTION 2. DUAL COVERAGE. _____________________________________________________________________ 18 SECTION 3 DENTAL BENEFITS ______________________________________________________________________ 18 SECTION 4. VISION CARE. ________________________________________________________________________ 18 SECTION 5. EMPLOYEE ASSISTANCE PLAN _____________________________________________________________ 18 ARTICLE XVII – RETIREMENT MEDICAL PLAN _______________________________________________________ 18 SECTION 1. RETIREE MEDICAL COVERAGE FOR UNIT EMPLOYEES HIRED BEFORE JANUARY 1, 2004: ______________________ 19 SECTION 2. 20-YEAR VESTING FOR RETIREE MEDICAL COVERAGE FOR UNIT EMPLOYEES HIRED ON OR AFTER JANUARY 1, 2004: _ 19 ARTICLE XIII – BASIC LIFE INSURANCE _____________________________________________________________ 19 ARTICLE XIX– SUPPLEMENTAL LIFE INSURANCE _____________________________________________________ 19 ARTICLE XX– LONG TERM DISABILITY INSURANCE ___________________________________________________ 20 ARTICLE XXI - EFFECTIVE DATE OF BENEFIT COVERAGE FOR NEW EMPLOYEES ____________________________ 20 ARTICLE XXII-WORKERS’ COMPENSATION _________________________________________________________ 20 ARTICLE XXIII- RETIREMENT PENSION PLANS _______________________________________________________ 20 SECTION 1. SAFETY PERS RETIREMENT FORMULA. _______________________________________________________ 20 SECTION 2. STATUS DETERMINATION ________________________________________________________________ 21 3 SECTION 3. EMPLOYER CONTRIBUTIONS TO 457 PLAN _____________________________________________________ 21 ARTICLE XXIV - MISCELLANEOUS EMPLOYMENT-RELATED EXPENSES ___________________________________ 22 SECTION 1. STATION HOUSE FUND. _________________________________________________________________ 22 SECTION 2. NON-FOOD HOUSE ITEMS _______________________________________________________________ 22 SECTION 3. PER DIEM TRAVEL EXPENSES FOR CITY BUSINESS ________________________________________________ 22 SECTION 4. PARKING ___________________________________________________________________________ 22 ARTICLE XXV – WORK ASSIGNMENTS _____________________________________________________________ 22 ARTICLE XXVI - FULL UNDERSTANDING ____________________________________________________________ 22 SECTION 1 __________________________________________________________________________________ 22 SECTION 2. SEVERABILITY. ________________________________________________________________________ 23 SECTION 3. __________________________________________________________________________________ 23 SECTION 4. __________________________________________________________________________________ 23 SECTION 5. __________________________________________________________________________________ 23 ARTICLE XXVII - DURATION _____________________________________________________________________ 23 ARTICLE XXVIII- 48/96 WORK SCHEDULE __________________________________________________________ 23 APPENDIX A__________________________________________________________________________________ 26 4 CITY OF PALO ALTO AND PALO ALTO FIRE CHIEFS’ ASSOCIATION PREAMBLE This Memorandum of Agreement between the City of Palo Alto, hereinafter referred to as the "City", and the Palo Alto Fire Chiefs’ Association, hereinafter referred as the "Association", has been prepared and entered into in accordance with Title I, Division 4, Chapter 10, Sections 3500- 3510 of the California Government Code and Chapter 12 of the City of Palo Alto Merit System Rules and Regulations. ARTICLE I - RECOGNITION Section 1. The City recognizes the Association as the exclusive representative of an employee group consisting solely of the classifications of Battalion Chief 56-hour workweek, and Battalion Chief 40-hour workweek who are regularly employed by the City. ARTICLE II - NO DISCRIMINATION Section 1. The Association and the City hereby agree that there shall be no discrimination because of race, color, age, disability, sex, national origin, sexual orientation, political or religious affiliation or any other basis recognized by federal, state or local law under this Agreement. There shall be no discrimination in employment conditions or treatment of employees on the basis of membership or nonmembership in the Association, or participation in the lawful activities of the Association. Section 2. The Association and the City hereby agree to protect the rights of all employees to exercise their free choice to join the Association and to abide by the express provisions of applicable State and local laws. ARTICLE III - PAYROLL DEDUCTIONS Section 1. The City shall deduct Association Union membership dues assessments and insurances authorized by the Union. and other mutually agreed uponThis will be accomplished by payroll deductions from the bi-weekly pay of member employees. The dues deduction must be authorized in writing by the employee on an Union authorization card acceptable to the Association and the City. 5 The Union will be the custodian of records for individual employee membership and dues deduction forms. The Union will maintain all authorizations for dues deduction, signed by the individual from whose salary or wages the deduction or reduction is to be made. The City will direct employee requests to cancel or change deductions to the Association. The City shall remit the deducted dues to the Association as soon as possible after deduction. All Union members on payroll deduction for payment of Union dues as of 5:00 p.m. on the tenth day following signing of this Memorandum of Agreement must remain on payroll deduction for the life of the Memorandum of Agreement, or so long as they remain members of the representation unit. Union members who establish dues payroll deduction during the term of the Memorandum of Agreement must remain on payroll deduction for the life of the Memorandum of Agreement, or so long as they remain members of the representation unit. Union members on dues payroll deduction may declare their intention to terminate such payroll deduction following expiration of this Memorandum of Agreement during the thirty-day period between sixty and ninety days prior to expiration of the Memorandum of Agreement. Section 2. Certification of Union Membership. The Union agrees to provide the City an initial certified list of members and statement that the Association has and will maintain written authorizations signed by the individuals from whose wages the Union dues deductions are to be made. From that point forward the Union will update the list whenever there are changes. Agency Shop. Pursuant to legislation enacted by SB 739 and amendment to the Meyers-Milias- Brown Act, the City and the Union agree to abide by the following provisions as they relate to an agency shop and an agency shop election. Agency Shop as defined under Meyers-Milias Brown means “an arrangement that requires an employee, as a condition of continued employment, either to join the recognized employee organization, or to pay the organization a service fee in an amount not to exceed the standard initiation fee, periodic dues, and general assessments of the organization.” The City and the Union agree that an agency shop arrangement between the City and the Union shall be placed in effect upon ratification of this agreement. Any employee who is a member of a bona fide religion, body, or sect that has historically held conscientious objections to joining or financially supporting public employee organizations shall not be required to join or financially support any public employee organization as a condition of employment. The employee may be required, in lieu of periodic dues, initiation fees, or agency fees, to pay sums equal to the dues, initiation fees, or agency fees to a nonreligious, no labor charitable fund exempt from taxation under Section 501(c)(3) of the Internal Revenue Code, chosen by the employee from a list of at least three organizations, or if the memorandum of understanding between the City and the Union fails to designate the funds, then to any such fund chosen by the employee. Proof of the payments shall be made on a monthly basis to the City as a condition of continued exemption from the requirement of financial support to the Union. Covered employees shall execute written authorization for either Union dues deductions, the 6 agency fee, or, if eligible, the charitable contribution. In the absence of a written authorization the City shall deduct the agency fee from the employee’s paycheck. If implemented, an agency shop provision may be rescinded by a majority vote of all the employees in the unit covered by the Memorandum of Understanding pursuant to the Meyers- Milias-Brown Act. The Union shall keep an adequate itemized record of its financial transactions and shall make available annually, to the City and to the employees who are members of the organization, within 60 days after the end of its fiscal year, a detailed written financial report thereof in the form of a balance sheet and an opening statement, certified as to accuracy by its president and treasurer or corresponding principal officer, or a certified public accountant. Section 3. Indemnification. The Union shall indemnify and hold the City harmless against any liability arising from any claims, demands, or other action relating to this articlethe City’s compliance with the agency shop obligation. The Union shall comply with all statutory and legal requirements with respect to this articleAgency Shop. ARTICLE IV - NO STRIKES Section 1. The Association, its representatives, or members, shall not engage in or cause, instigate, encourage, sanction, or condone a strike, withholding of services, leave of absence abuse, work stoppage or work slowdown of any kind against the City of Palo Alto or its citizens by employees covered under this Agreement. No employee shall refuse to cross any picket line in the conduct of Fire Department business, nor shall the Association, its representatives or members discriminate in any way toward anyone who refuses to participate in a strike, or any of the job actions cited above. ARTICLE V - SALARY PROVISIONS Section 1. Salary Range Adjustments. a) The base wage rates of the bargaining unit classifications will be set forth in Appendix XX A of this MOA. b) Base Salary: Effective the first full pay period following Council adoption, a three percent (3%) salary increase will be applied to the salary ranges for all represented classes. c) Market Increase: Effective the first full pay period following Council adoption, a two and a half percent (2.5%) salary increase will be applied to the salary ranges for all represented classes. 7 d) Base Salary: Effective the first full pay period following July 1, 2019, a three percent (3%) salary increase will be applied to the salary ranges for all represented classes. e) Base Salary: Effective the first full pay period following July 1, 2020, a three percent (3%) salary increase will be applied to the salary ranges for all represented classes. Per parties agreement a 6.22% general salary increase was applied to the salary ranges of all Safety classifications effective June 25, 2016. Effective the first full pay period following City Council approval of this successor MOA, the EMS director classification shall be moved to the Management Group and initial salary placement shall be at $148,990.00. The EMS director shall no longer be a classification in this unit nor entitled to any increases provided in this MOA. All other compensation and benefits including contributions towards pension shall be consistent with the management compensation plan related to miscellaneous classifications. Effective the first full pay period following City Council approval of this successor MOA, a 6.28% general salary increase for safety classifications will be applied to the salary ranges for all classifications in this unit. Effective the pay period including July 1, 2017 a market adjustment of 3% salary increase will be applied to the salary ranges for all classifications in this unit. Total Compensation Market Study. The City will conduct a total compensation survey by November 2017 using the criteria listed below (Total Compensation and Survey Database). Data shall include the contributions in effect up until the November 2017 period. If the City’s survey shows that the Battalion Chief benchmark based on the median is under the market median, the City shall confer a market adjustment to place the benchmark to the median of market, up to a cap of two and a half percent (2.5%), effective the last pay period in December 2017. b)f) Total Compensation and Survey Database: Management and the Union have agreed to a compensation survey database structure. Survey Cities include: Alameda, Berkeley, Fremont, Hayward, Menlo Park Fire District, Milpitas, Mountain View, Redwood City, Pleasanton, San Jose, San Mateo, San Ramon Fire District, Santa Clara, Santa Clara County and South San Francisco. Compensation Criteria includes: top step salary, maximum longevity, maximum education, uniform allowance, EMT differential, Hazmat differential, deferred compensation, employee pick up of employer pension costs (Negative EPMC), and maximum City paid benefits (medical, dental, vision, life insurance, LTD, and EAP). 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. Section 2. EMT Differential. The former EMT differential of 3.0% was rolled into base pay. This one time conversion to base pay, shall constitute the City’s incentive payment for EMT skills. This conversion was cost neutral to the City. Section 3. 40-hour Work Week Assignment Differential. Employees assigned to a 40-hour 8 workweek schedule will be paid a differential of five percent (5%) of base salary in-lieu of holiday pay differential which 56-hour shift Battalion Chiefs receive. Section 4. Out of County Strike Team Pay. A Battalion Chief sent on out of County strike team duty will receive the following compensation only if the City is reimbursed from the state or federal government for the labor costs incurred by the City. Compensation to the employee will not exceed the rate for which the City is reimbursed by the State of California or other external entity, excluding reimbursements for other labor costs (e.g. workers compensation, administrative expense, etc.). A Battalion Chief on their regular duty shift deployed on an out of County strike team will be eligible for compensation at their normal hourly rate (1.0 hourly rate), assuming a regular 56 hour schedule. A Battalion Chief on non-regular duty shift days deployed on an out of County strike team will be eligible for compensation at a rate of 1.5 of their normal hourly rate. For 40 hour Battalion Chiefs deployed on an out of County strike team, any out of County strike team compensation will be calculated at a 56 hour Battalion Chief Schedule hourly rate. Payment for out of county strike team duty will be calculated based on the number of twenty- four hour shifts worked and prorated for any partial shifts. A Personnel Action Form will be completed in a timely manner to process this payment. The amount of the payment will be calculated in a manner described above. If the City is not reimbursed, no payment is due to the employee. If the City is reimbursed in part, a prorated payment will be calculated based on the reimbursement rate. As outlined above, compensation to the employee will not exceed the rate for which the City is reimbursed by the State of California or other external entity. ARTICLE VI – HOLIDAYS Section 1. Named Holidays. The following holidays are recognized as municipal holidays for pay purposes and non-shift employees shall have these days off with pay, except as otherwise provided in these rules: January 1 Veteran’s Day, November 11 Third Monday in January Thanksgiving Day Third Monday in February Day after Thanksgiving Day Last Monday in May December 25 July 4th Either December 24 or December 31 as provided below First Monday in September 9 Second Monday in October Section 2. 56-Hour Work Week Assignments. One hundred forty nine and one half (149.5) hours is the total amount of holiday hours paid annually to an employee divided by 26 payroll periods which equals 5.75. Shift personnel shall receive pay in lieu of taking paid leave for accrued holidays. Such paid hours are in biweekly amount of 5.75 holiday hours. Holiday hours are prorated and accrued based on hours actually worked. If employees elect to be paid for these holiday hours at any time before the scheduled payoff they must have sufficient hours in their holiday account and must complete the Cash-out Request Form. Accrued holiday balances of shift employees will be automatically paid off in the months of June and December. Section 3. 40-Hour Work Week Assignments. Employees assigned to a 40-hour workweek schedule will receive paid holidays in accordance with Sections 517 and 518 of the Merit System Rules and Regulations. ARTICLE VII - VACATION ACCRUAL Section 1. Vacation will be accrued when an employee is in a pay status and will be credited on a bi-weekly basis. Such accrual balance and credit may not exceed three times the annual rate of accrual. Accrual rates are by work week assignments as indicated in Section 1 and Section 2 below. Section 2. 56-Hour Workweek Assignments. Employees assigned to a 56-hour workweek schedule (24- hour shift) will accrue vacation at the following rate for continuous service performed in a pay status. a) For employees completing less than four (4) years continuous service, the accrual rate shall be five (5) duty shifts per year. b) For employees completing four (4), but less than nine (9) years continuous service, the accrual rate shall be eight (8) duty shifts per year. c) For employees completing nine (9), but less than fourteen (14) years continuous service, the accrual rate shall be ten (10) duty shifts per year. d) For employees completing fourteen (14), but less than nineteen (19) years continuous service, the accrual rate shall be eleven (11) duty shifts per year. e) For employees completing nineteen (19) or more years continuous service, the accrual rate shall be twelve (12) duty shifts per year. Section 3. 40-Hour Workweek Assignments. Personnel assigned to a 40-hour workweek schedule will accrue vacation at the following rate for continuous service performed in a pay 10 status. a) For employees completing less than four (4) years continuous service, the accrual rate shall be eighty (80) hours per year. b) For employees completing four (4), but less than nine (9) years continuous service, the accrual rate shall be one-hundred twenty (120) hours per year. c) For employees completing nine (9), but less than fourteen (14) years continuous service, the accrual rate shall be one-hundred sixty (160) hours per year. d) For employees completing fourteen (14), but less than nineteen (19) years continuous service, the accrual rate shall be one-hundred eighty (180) hours vacation leave per year. e) For employees completing nineteen (19) or more years continuous service, the accrual rate shall be two- hundred (200) hours vacation leave per year. ARTICLE VIII - VACATION CASH OUT Section 1. Limitation on Use. Employees may not use more than three times their annual rate of accrual in any calendar year period provided, however, that the Chief may grant exceptions to this limitation. Section 2. Cash out Option. a) Once each calendar year, Eemployees are eligible to cash out vacation accrual balances in excess of 80 hours. An employee may cash out a minimum of eight (8) hours to a maximum of 120 hours of accrued vacation provided employee has taken 80 vacation hours in the previous 12 months and has followed the election procedures set forth in this section. b) Employee must elect the number of vacation hours they will cash-out during the next calendar year, up to the maximum of 120 hours. For the 2012 calendar vacation year, employees will make their election for vacation hours to cash out no later than November 1, 2012. The election will apply only to vacation hours that are accrued in the next calendar year and that are eligible for cash-out. c) The election to cash-out vacation hours in each designated year will be irrevocable. This means that employees who elect to cash-out vacation hours must cash-out the number of accrued hours pre-designates on the election form. 11 d) Employees who do not elect a cash-out amount by November of the prior calendar year will be deemed to have waived the right to cash out any leave in the following tax year and will not be eligible to cash-out vacation hours in the next tax year. e) Employees who elect cash-out amount may request a cash-out at any time in the designated tax year by submitting a cash-out form to payroll. Payroll will complete the cash-out form upon request, provided the requested cash-out amount has accrued and is consistent with the amount the employee pre-designated. If the full amount of hours designated for cash-out is not available at the time of cash-out, the maximum available will be paid. For employees who have not requested cash-out of the elected amount by November 1 of year, Payroll will automatically cash- out the elected amount in a paycheck issued on or after the payroll date including November 1. ARTICLE IX - MANAGEMENT ANNUAL LEAVE Section 1. Forty (40) hour and fifty-six (56) hour workweek employees not eligible for overtime shall be credited at the beginning of each calendar year with eighty (80) hours of annual leave which may be taken as paid time off, added to vacation accrual (subject to vacation accrual limitations), taken as cash or taken as deferred compensation. Entitlement under this provision will be reduced on a prorated basis for part-time status, or according to the number of months in paid status during the calendar year. Unused balances as of the end of the calendar year will be paid in cash, unless a different option as indicated above is elected by the employee. The Management Annual Leave accrual will be changed to an annual accrual rather than fiscal year. Effective July 1, 2012, employees will be credited with forty (40) hours of management annual leave to be used by December 31, 2012 or automatically will be cashed out. Effective January 1, 2012, and every January 1 thereafter, employees will be credited with eighty (80) hours of management annual leave to be used by December 31st or automatically will be cashed out. ARTICLE X - OTHER PAID LEAVES Section 1. City Manager Granted Leaves. The City Manager may grant a regular employee under his control a leave of absence with pay for a period not exceeding thirty calendar days for reasons he deems adequate and in the best interest of the City. Section 2. Council Granted Leave. The City Council may grant a regular employee a leave of absence with pay for a period not to exceed one year for reasons the Council considers adequate and in the best interest of the City. Section 3. Employee's Time Off to Vote. Time off with pay to vote at any general or direct 12 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 4. Leaves of Absence; Death in Immediate Family. Leave of absence with pay of one shift for 56-hour shift employees with provision for approval of one additional shift for travel outside the area may be granted an employee by the Chief in the event of death in the employee's immediate family, which is defined for purposes of this section as wife, husband, son, son-in-law, daughter, daughter-in-law, father, mother, brother, brother-in-law, sister, sister-in-law, mother- in-law, father-in-law, step-father, step-mother, step- sister, step-brother, grandfather, grandfather-in-law, grandmother, grandmother-in-law, uncle, aunt, 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. Requests for leave in excess of two shifts shall be subject to the approval of the City Manager. Employees assigned to a 40-hour work week are eligible for leave of absence granted by the Chief with pay for three days in the event of death in the employee’s immediate family which is defined above. Section 5. Jury Duty; Leave of Absence. Employees required to report for jury duty 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 for such duties other than mileage or subsistence allowances within thirty days from the termination of his or her jury service. Section 6. Subpoenas. Employees required to answer subpoenas as a witness for the City of Palo Alto or for a plaintiff where the City of Palo Alto is a defendant shall not lose pay or benefits for work time lost to answer depositions or to appear in court. ARTICLE XI - OTHER LEAVE PROVISIONS Section 1. 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 physician's verification including diagnosis and medical work restriction. Section 2. Other Unpaid Leaves. Leaves of absence without pay may be granted in cases of personal emergency or when such absences would not be contrary to the best interest of the City. Non-disability prenatal and/or postpartum leave is available under this provision, but such leave shall not begin more than six months prenatal nor extend more than six months postpartum. Section 3. Accrued Vacation Credits. 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 not be unreasonably denied. In order to avoid misunderstandings, all leaves without pay must be in writing to be effective. Section 4. Approval of Department Head. Leave of absence without pay for one week or less may be granted by the department head, depending on the merit of the individual case. 13 Section 5. Approval by City Manager. Leave of absence without pay in excess of one week's duration may be granted by the City Manager on the merit of the case, but such leave shall not exceed twelve months' duration. Section 6. Absence Without Leave. Unauthorized leave of absence shall be considered to be without pay, and reductions in the employee's pay shall be made accordingly. Unauthorized leave of absence may result in termination of employment. Section 7. Leave of Absence; Death Outside the Immediate Family. Leave without pay may be granted a regular employee by his/her department head in the event of death to family members other than one of the immediate family, such leave to be granted in accordance with Section 2 and Section 4. Section 8. Military Leave of Absence. State law shall govern the granting of military leaves of absence and the rights of employees returning from such absence. ARTICLE XII - VOLUNTARY CATASTROPHIC LEAVE PROGRAM Section 1. The City of Palo Alto has established a Firefighter Voluntary Leave Program to provide FCA employees the opportunity to donate their accrued vacation time to assist fellow members of FCA either due to: (a) an employee’s own verifiable non-industrial catastrophic illness or injury (as defined herein) or (b) in order to care for a member of the employee’s immediate family (spouse, child, parent or registered domestic partner suffering from a verifiable catastrophic illness or injury) and have exhausted or will presently exhaust all of their paid leave. Section 2. In order to be eligible to receive donated leave, an employee must have a catastrophic illness or injury or an employee’s immediate family member must have a catastrophic illness or injury that requires the employee to provide full-time care for this family member. Care will be taken to emphasize the voluntary nature of the plan and to insure confidentiality of employee participants and medical conditions (where applicable). Section 3. A Firefighter Voluntary Leave Sharing Program has been established to accept donations of vacation in accordance with the Program’s guidelines. All donations shall be: a) Voluntary b) Irrevocable c) Confidential, unless disclosure is required by law d) In whole hour increments of at least four (4) hours, with the hours donated being converted to donee hours based on the donee’s salary rate (so that there will be no cost to the City due to salary differential). e) The employee shall be required to exhaust all other types of leave to request donated leave 14 f) It is understood that employees seeking or receiving leave under this program will apply for long- term disability benefits for which they may be eligible g) Where any of the period during which an employee receives donated leave is designated as family leave under the California Family Rights Act (CFRA/Family Medical Leave Act (FMLA), the employee will be eligible for continuation of medical and other available benefits during that the family leave period (for up to 12 weeks), in accordance with the requirements of those laws. If the employee receiving donated leave is not eligible for CFRA/FMLA benefit continuation, or after the employee has exhausted the available CFRA/FMLA leave period, the employee will need to pay the premiums for continued medical and other available benefits if the employee chooses to continue such coverage through the City h) If the donation request is based on the need for an employee to care for an immediate family member, as defined above, the family member must require full-time care by the employee. Certification of this requirement by a health care professional is required i) The maximum donated time a donee may receive is 12 months (if available). j) Applications to donate leave or receive leave under this Program are made to the Human Resources Department k) The tax treatment of donation or receipt of vacation under this section is governed by the IRS and not the City. Section 4. FCA members interested in donating leave or in applying to receive donated leave shall complete forms provided by the Human Resources Department. If an applicant for leave is found to meet the criteria set forth herein, Human Resources will determine the availability of and (as applicable) allocation of donated paid leave. Payroll will be notified in writing of the number of hours to be deducted from each donating employee’s vacation balance and transferred to the donee employee(s). Section 5. The City reserves the right to modify or terminate this program at any time. Section 6. Catastrophic Illness or Injury (also referred to as “medical emergency” in Revenue Ruling 90-29 and Sections 801(c) and 812 of the Merit Rules and Regulations): A non- occupational medical condition of an employee that will require the prolonged absence of the employee from duty and which will result in a substantial loss of income to the employee because the employee will have exhausted all paid leave available apart from the Voluntary Employee Leave sharing Program. Non-disability postpartum leave as referenced in Merit Rule 801(b) shall not be considered a catastrophic illness or injury under this Policy. ARTICLE XIII - ADDITIONAL COMPENSATION FOR BC CLASSIFICATIONS POTENTIAL BATTALION CHIEF EXTRA SHIFT COVERAGE Battalion Chiefs who back fill for an operations shift (or shifts) for a 56-hour work week Battalion Chief will be provided additional compensation for the extra shift coverage, provided that the extra shift requires working hours beyond regularly scheduled hours. 15 Extra Shift Coverage Eligibility  Extra shift coverage pay applies to the level of Battalion Chief only and is not intended as compensation for Battalion Chiefs to backfill a lower classification.  A minimum of eight (8) continuous hours of the extra shift coverage must be worked to be eligible for compensation. After the minimum of eight (8) continuous hours is met, the Battalion Chief will be paid for the entire shift worked. Extra Shift Coverage Pay Rate  Compensation for the extra shift coverage by a 56-hour or 40-hour Battalion Chief will be paid at the 56-hour straight-time rate of the Battalion Chief performing the back fill. First Rights of Refusal  Battalion Chiefs shall be provided first rights of refusal for the extra shift coverage. If no Battalion Chiefs are available to back fill the extra coverage shift, the shift will be assigned to fire personnel at a lower classification in accordance with the standard protocols of the department. Extra Shift Coverage Pay Not PERSable  All pay under this extra shift coverage provision will be reported to CALPERS by the City of Palo Alto in a manner that excludes such pay from PERSable income. As such, the extra shift coverage pay is not subject to CALPERS contributions by the employer or employee and is not included as a factor in the employee’s final compensation for pension purposes. Fire Chief Discretion  In accordance with management rights provisions, the Fire Chief maintains discretion to approve, modify or disapprove extra shift coverage assignments. FLSA Exempt Status  Nothing in the extra shift coverage provision is intended to impact the FLSA-exempt status of Battalion Chiefs. Battalion Chiefs remain FLSA-exempt and are therefore not eligible for overtime pay or compensatory time. ARTICLE XIV - EXCESS BENEFIT REIMBURSEMENT Section 1. The benefit provided by this Article is designed to meet the requirements of Section 125 of the Internal Revenue Code. Every calendar year, each employee will be provided with $2,500 that they can designate among the following options: a) Medical Flexible Spending Account (Medical FSA). Provides reimbursement for excess medical/dental/vision, or expenses that are incurred by employees and their dependents which are not covered or reimbursed by any other source, including existing City-sponsored plans. This includes prescribed medications and co-payments as 16 specified in applicable federal law. b) Dependent Care Flexible Spending Account (Dependent Care FSA). Provides reimbursement for qualified dependent care expenses under the City's Dependent Care Assistance Program (DCAP), subject to the limits specified in applicable federal law. 1) Dependent care expenses not reimbursed under this section may be eligible for reimbursement under the City Voluntary Dependent Care FSA program. However, the maximum amount reimbursed under the Voluntary Dependent Care FSA program will be reduced by any amount reimbursed under the Excess Benefit Plan. c) Professional Development Employees may use these funds for professional development purposes on a taxable basis to the extent such expenses (e.g., job-related training and education, seminars, training manuals, etc.) are not paid or reimbursed under any other plan of the City. d) Deferred Compensation. Provides a one-time contribution to the employee’s City- sponsored I.R.C. § 457 Deferred Compensation plan with either ICMA-RE or Mass Mutual, subject to the contribution limitations of applicable law. Amounts designated by employees to either the Medical FSA, Dependent Care FSA, or Professional Development options are done so on a “use –it-or-lose-it” basis. This means that any amounts designated and not used by the end of the calendar year (or end of the extended grace period for the medical FSA) will be forfeited by the employee and returned to the plan. Specified amounts under this benefit will be applied on a pro-rata basis for employees who are part-time or who are in FCA pay status for less than the full fiscal year. Such benefits will be pro-rated in the first year of employment (based on hire date) but will not be pro-rated upon separation of employment. ARTICLE XV - PHYSICAL EXAMS Physical fitness medical examinations for all represented employees will be provided in accordance with the Fire Department Physical Fitness Program General Order. ARTICLE XVI - BENEFIT PROGRAMS Section 1. Health Plan - ACTIVE EMPLOYEES: During the term of this contract, the maximum City contribution towards medical premiums for eligible full time employees per employee category shall be up to a maximum of the following for any plan: 17 Medical Premium Category PEMHCA Contribution* Total Maximum City Contribution (inclusive of PEMHCA contribution) effective from time of ratification through December 31, 2018 Total Maximum City Contribution (inclusive of PEMHCA contribution) effective January 1, 2019 Employee Only $133.00 $804 $840 Employee plus one $133.00 $1606 $1680 Employee Family $133.00 $2088 $2180 Medical Premium Category PEMHCA contribution* Up to a Total Maximum City Contribution Effective January 1, 2017 as soon as administratively possible Up to a Total Maximum City Contribution Effective January 1, 2018 Employee only $128.00 $773.00 $804.00 Employee plus one $128.00 $1,544.00 $1,606.00 Employee Family $128.00 $2,008.00 $2,088.00 The City’s total maximum contribution towards medical premiums for eligible part time employees shall be prorated based on the number of hours per week the part-time employee is assigned to work. *PEMHCA minimum changes per statutory determination as of 2017. Any increases to the PEMHCA minimum during the term of this contract will result in a corresponding decrease to the amount of the additional City contribution, so that the total maximum City contribution never exceeds the amount listed in the “Total Maximum City Contribution described” columns above. If the State of California or federal government requires the City to participate and contribute toward coverage under any medical plan outside of PEMHCA including but not limited to the Affordable Care Act, 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 parties will meet and confer over the impact of such change on matters within the scope of representation before implementing any change. a. Active employee domestic partners whose domestic partnership is registered with the 18 State of California may add their domestic partner as a dependent to their elected health plan coverage if the domestic partner is registered with the Secretary of State. Active employee domestic partners whose domestic partnership is not registered with the State but 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 90% of the average monthly premium cost of individual coverage under the PEMHCA health plans in 2016. Effective with the first pay period including January 1, 2017, a stipend of two hundred eighty four ($284) per month toward the cost of an individual health plan will be provided. Evidence of premium payment will be required with request for reimbursement. Section 2. Dual Coverage. When a City employee is married to another City employee each shall be covered only once (as an individual or as a spouse of the other City employee, but not both) and dependent children, if any, shall be covered only by one spouse. Section 3 Dental Benefits a. Level of Benefits. The City will maintain the present level of benefits on the City- sponsored dental program. Maximum benefits per calendar year shall be $2,000. b. Premiums. The City shall pay all premium payments or equivalent self-insured program charges on behalf of employees and dependents who are eligible and enrolled for coverage under the existing dental plan. Dependents will include domestic partners, as defined under Article XVII Section 3. c. Orthodontia Benefit Maximum. The City will provide a 50% of reasonable charges, $2,000 lifetime maximum orthodontic benefit for representation unit employees and their dependents. Section 4. Vision Care. The City offers vision care coverage for employees and dependents. Coverage is equivalent to $20 Deductible Plan A under the Vision Service Plan, with monthly premiums paid by the employer. Dependents include domestic partners, as defined under Article XVII Section 1. Section 5. Employee Assistance Plan. The Employee Assistance Plan (EAP) provides employees with confidential personal counseling, work and family related issues, eldercare, substance abuse, etc. In addition, EAP programs provide a valuable tool for supervisors to refer troubled employees to professional outside help. This service staffed by experienced clinicians is available to employees and their dependents by calling a toll-free phone line 24 hours a day, seven days a week. Guidance is also available online. ARTICLE XVII – RETIREMENT MEDICAL PLAN 19 Section 1. Retiree medical coverage for Unit employees hired before January 1, 2004: Monthly City-paid premium contributions for a retiree-selected PEMHCA optional plan will be made in accordance with the Public Employees' Medical and Hospital Care Act Resolution for employees that retire on or before December 31, 2006. Effective January 1, 2007 for an employee retiring on or after that date the City will pay up to the monthly medical premium for the 2nd most expensive plan offered to FCA employees among the existing array of plans. However, the City contribution for an employee hired before January 1, 2004 who retires on or after December 1, 2011 shall be the same contribution amount it makes for active City employees. Effective upon ratification and adoption of this Agreement, the City shall provide active unit employees who were hired before January 1, 2004 with a one-time opportunity to opt-in to retiree health benefits provided under California Government Code section 22893. Eligible employees who wish to exercise this option shall inform the Human Resources Department of their election in writing no later than 90 days following the ratification and adoption of this Agreement. Section 2. 20-Year Vesting for Retiree Medical Coverage for Unit Employees Hired On Or After January 1, 2004: The retiree health benefit provided in California Government Code section 22893 shall apply to all employees hired on or after January 1, 2004. Under this law, an employee is eligible to receive Fifty (50) percent of benefit after ten (10) years; each additional service credit year after Ten (10) years will increase employer credit by Five (5%) percent until Twenty (20) years is reached at which time employee is eligible for One Hundred (100%) percent of annuitant-only coverage and Ninety (90%) percent of the additional premium for dependents. ARTICLE XIII – BASIC LIFE INSURANCE The City shall provide a basic life and AD & D insurance plan in an amount equal to the employee's annual base compensation (rounded to the next highest $1,000). ARTICLE XIX– SUPPLEMENTAL LIFE INSURANCE An employee may, at his/her cost, purchase additional life insurance and additional AD&D coverage. The total amount of life insurance available to the employee is $325,000 and the total amount of AD&D coverage available is $325,000. 20 ARTICLE XX– LONG TERM DISABILITY INSURANCE In lieu of providing long-term disability insurance program to eligible employees, the City shall add $40.00 per month to the base salary of eligible employees. This $40.00 per month shall not be calculated into the labor market salary comparison. ARTICLE XXI - EFFECTIVE DATE OF BENEFIT COVERAGE FOR NEW EMPLOYEES For newly-hired regular employees coverage begins on the first day of the month following date of hire for the health plan, dental plan, vision care plan, life insurance and long term disability plans if these benefits are elected. ARTICLE XXII-WORKERS’ COMPENSATION Persons on disability will be required to appear or otherwise report at regular two-week intervals to the Fire Chief or designate to discuss his/her status and ability to return to full or restricted work status. This section is not meant to unreasonably restrict employee's activities so long as such activities are cleared by the treating physician, treating program or alternative treatment program is maintained and employee is available for full or restricted duty as soon as medical clearance can be received. ARTICLE XXIII- RETIREMENT PENSION PLANS Section 1. Safety PERS Retirement Formula. a. Safety Pension Group A: 3%@50 Safety Retirement: The City will continue the present benefits under the Public Employees' Retirement System (PERS) "3 percent at 50 (3%@50)" formula for employees hired before the effective date of the “3 percent at Section 2. 55” (3%@55) formula for new hires as described herein. The final year compensation for employees hired under the 3% at 50 formula will continue to be “Single highest year” or the highest average annual compensation earnable by the member during one (1) year of employment immediately preceding retirement or the one- year period otherwise designated by the member (Government Code section 20042). b. Safety Pension Group B: 3%@55 Safety Retirement: Effective December 7, 2012, the City amended its contract with CalPERS to provide employees hired on or after that date who are not “new members” of CalPERS, as defined in the Public Employees’ Pension Reform Act (after referred to as “classic” CalPERS members) with the CalPERS retirement formula three percent of final salary at age 55 (“3%@55”), with the final salary determination for such employees of “3 highest consecutive years” based on the highest average annual compensation earnable by the member during three (3) consecutive years of employment immediately preceding retirement or the three-year period otherwise designated by the member (Government Code section 20037). 21 c. Safety Pension Group C: 2.7% at Age 57 Safety Retirement: Employees hired on or after January 1, 2013 meeting the definition of “new member” under the Public Employees’ Pension Reform Act (Gov’t. Code s. 7522 et seq.) shall be subject to all of the provisions of that law, including but not limited to the two point seven percent at age 57 (2.7%@57) retirement formula with a three year final compensation period. d. Safety PERS Member Contribution. 1. Effective the first full pay period after Union ratification and City Council adoption of this successor MOA, Eemployees in all classifications in Pension Groups A and B described above shall pay an additional 3.9% for a total of 9% towards the PERS member contributions by payroll deduction. 2. Employees in all represented classes in Pension Group C described above shall pay the employee contribution required by the Public Employees’ Pension Reform Act, currently calculated at fifty percent (50%) of the normal cost. 3. When employees pay their PERS Member Contribution pursuant to section 2a and 2b above, the City will provide for member contributions to be made as allowed under provisions of IRS Code Section 414(h)(2). e. Additional Employee PERS contributions: In addition to the PERS member contribution as required under section 2d 1, 2 and 3 above, all employees in pension groups a, b and c shall contribute the additional following contributions: 1. Effective as soon as administrative possible but no sooner than July 1, 2017, aAll employees regardless of pension formula in this unit shall, in addition to the Member Contribution required, shall pay an additional 3% towards the Employer share of Pension regardless of pension formula through a CalPERS 20516 contract amendment. 2. Effective the first full pay period following July 1, 2020, all employees regardless of pension formula in this unit shall, in addition to the Member Contribution required, pay an additional 1% towards the Employer share of Pension for a total of 4%. Section 2. Status Determination. An employee’s membership in and designation as Safety for CalPERS pension plan purposes shall be determined based on applicable California law. Section 3. Employer Contributions to 457 Plan Effective the first full pay period following July 1, 2020, the City will contribute the equivalent of 1% of the employee’s pensionable salary into the 457 plan. Eligibility: 1. Employees must be enrolled in an eligible City sponsored 457 plan 2. Employees who reach the maximum as defined by the IRS will not receive 22 additional contributions 3. Employee must be making PERS contributions ARTICLE XXIV - MISCELLANEOUS EMPLOYMENT-RELATED EXPENSES Section 1. Station House Fund. The Station House Fund per year per shift employee shall be $10048.00. Section 2. Non-Food House Items. The City agrees to furnish and maintain each fire station with the following non-food house fund items: TV purchase and repair, the San Jose Mercury News, and the San Francisco Chronicle to be selected on an annual basis. Kitchen cooking utensils, small kitchen appliances and other specific items to be determined by mutual agreement of the parties will be purchased from the Station House Fund. Section 3. Per Diem Travel Expenses For City Business. Unless other mutually agreeable arrangements are made, representation unit employees who are required to travel away from the City on City business will receive travel expenses, according to City policies which are currently in effect. Section 4. Parking. Employees in represented classes assigned to Civic Center or adjacent work locations shall be entitled to free parking in the Civic Center Garage, or a commute incentive which will be subject to meet and confer. Employees hired after July 1, 1994 may initially receive a parking permit for another downtown lot subject to availability of space at the Civic Center garage. Light duty employees assigned to the Civic Center will receive Civic Center parking temporary permits for the duration of the light duty assignment. ARTICLE XXV– RESIDENCY For purposes of emergency response availability, represented employees shall live within 90 miles travel distance of the city limits of Palo Alto. ARTICLE XXV – WORK ASSIGNMENTS Selection of and assignment to Training Battalion Chief (40-hour workweek) shall be based upon seniority, except where operational needs are determined by the Fire Chief or designee, the Fire Chief or designee reserves the right to assign personnel based on Fire Department needs. For purposes of this article, seniority shall be calculated from date of entry into the Battalion Chief classification. ARTICLE XXVI - FULL UNDERSTANDING Section 1. The Memorandum of Agreement contains the full and entire understanding of the parties regarding the matters set forth herein. 23 Section 2. Severability. If any of the provision herein contained be rendered or declared invalid by reason of any State or Federal legislation, or by ruling of any court of competent jurisdiction, such invalidation of such part or portion of this Memorandum of Agreement shall not invalidate the remaining portions hereof, and they shall remain in full force and effect, insofar as such remaining portions are severable. Section 3. It is the intent of the parties that ordinances, resolutions, rules and regulations enacted pursuant to this Memorandum of Agreement be administered and observed in good faith. Section 4. Nothing in this Memorandum of Agreement shall preclude the parties from mutually agreeing to meet and confer on any subject with the scope of representation during the term of this agreement. Section 5. Merit System Rules and Regulations During the term of this Memorandum of Agreement, Management may propose certain changes in the City Merit System Rules and Regulations. With regard to such changes which pertain to the representation unit, the parties agree to review, and upon request, meet and confer regarding the changes. ARTICLE XXVII - DURATION This Memorandum of Agreement shall become effective upon signing by the parties hereto, except that those provisions herein that have specific effective dates shall take effect on those dates regardless of signing date, once this Memorandum of Agreement is signed by the parties hereto. This Memorandum of Agreement shall expire June 30, 2018. ARTICLE XXVIII- 48/96 PILOT PROGRAMWORK SCHEDULE The regular schedule for 56 hour personnel will be under a “48/96” model. With the adoption of this “48/96” schedule the parties agreed to revise Fire department policy 205.6 typical workday and 1009.8.1 reporting for Duty-Holidays. 24 The City of Palo Alto (City) and the Fire Chiefs’ Association agree to have the City evaluate changing the Palo Alto Fire Department’s work schedule for 56- hour personnel from its current schedule to a “48/96” work schedule with the goal of implementing a pilot schedule change as soon as administratively possible, if the parties are in agreement and required administrative and technology changes can be implemented by this date. Upon ratification of a new Memorandum of Agreement, a Labor Management Committee (LMC), including representatives from the Union, Fire Management, the City Manager’s Office, Human Resources, and the Administrative Services Department, will meet to design and evaluate the possible implementation of a “48/96” work schedule that is FLSA compliant, cost neutral, meets the needs of the City and does not compromise the effectiveness of fire services. The goal will be for the Committee to complete preparation for the evaluation as soon as administratively possible. If a schedule can be designed that is FLSA compliant, cost neutral and does not compromise service to the community, the parties agree to move forward with a pilot work schedule change. The City will begin making required administrative and technology changes in order to implement the pilot “48/96” work schedule as soon as administratively possible. The actual date of implementation will be dependent upon the City’s ability to modify payroll, staff scheduling and any other related systems to support the new schedule. The initial “Pilot Program” is planned to run for the term of the MOA, but may be terminated at any time if is determined to have a negative impact on costs or workforce effectiveness. The Pilot will conclude at the end of the MOA unless the parties mutually agree to extend the Pilot as the standard 56-hour work schedule. EXECUTED: FOR: FOR: FIRE CHIEFS ASSOCIATION CITY OF PALO ALTO James Keene, City Manager Rumi Portillo, Human Resources Director 25 Tori Anthony, Sr. Human Resources Administrator Nicholas Raisch, Manager of Employee Relations and Training Geoffrey Blackshire, Deputy Fire Chief Maria Lagman, Sr. Accountant Maria Patino, Human Resources Representative Ryan Stoddard, President Local 1319 Nate Heydorff, Vice President Local 1319 Sunny Johnson-Gutter, Secretary Local 1319 APPENDIX A Non-Shift Job Code Classifications Grade Codes Hourly Rate Approx Monthly Salary Approx. Annual Salary 018 Battalion Chief 40-hour workweek 28 $92.26 $15,992 $191,901 015 Battalion Chief EMT 40-hour workweek 28E $94.78 $16,429 $197,142 2019 Battalion Chief EMT, Training 40-hour workweek 28E $94.78 $16,429 $197,142 Shift Job Code Classifications Grade Codes Approx Monthly Salary Approx. Annual Salary 116 Battalion Chief 56-hour workweek 030 $62.78 $15,235 $182,815 016 Battalion Chief EMT 56-hour workweek 030E $64.50 $15,652 $187,824 Non-Shift Job Code Classifications Grade Codes Hourly Rate Approx Monthly Salary Approx. Annual Salary 018 Battalion Chief 40-hour workweek 28 $95.03 $16,472 $197,662 015 Battalion Chief EMT 40-hour workweek 28E $97.63 $16,923 $203,070 2019 Battalion Chief EMT, Training 40-hour workweek 28E $97.63 $16,923 $203,070 Shift Job Code Classifications Grade Codes Approx Monthly Salary Approx. Annual Salary 116 Battalion Chief 56-hour workweek 030 $64.67 $15,693 $188,319 016 Battalion Chief EMT 56-hour workweek 030E $66.44 $16,123 $193,473 Non-Shift Job Code Classifications Grade Codes Hourly Rate Approx Monthly Salary Approx. Annual Salary 018 Battalion Chief 40-hour workweek 28 $97.89 $16,968 $203,611 015 Battalion Chief EMT 40-hour workweek 28E $100.56 $17,430 $209,165 2019 Battalion Chief EMT, Training 40-hour workweek 28E $100.56 $17,430 $209,165 Shift Job Code Classifications Grade Codes Approx Monthly Salary Approx. Annual Salary 116 Battalion Chief 56-hour workweek 030 $66.62 $16,166 $193,997 016 Battalion Chief EMT 56-hour workweek 030E $68.44 $16,608 $199,297 First full pay period following July 1, 2020 (3% Increase) Effective the first full pay period upon adoption (5.5% Increase) First full pay period following July 1, 2019 (3% Increase) Memorandum of Agreement City of Palo Alto and Palo Alto Police Management Association (PAPMA) October 1, 2018 – June 30, 2021 City of Palo Alto and PAPMA October 1, 2018 – June 30, 2021 Page 2 of 24 TABLE OF CONTENTS ARTICLE I – PREAMBLE ................................................................................................................... 4 Section 1 – Recognition. .................................................................................................................... 4 Section 2 – Non-Discrimination. ........................................................................................................ 4 ARTICLE II – COMPENSATION ........................................................................................................ 4 Section 3 – Salary. .............................................................................................................................. 4 Section 4 – Working Out of Class Pay. .............................................................................................. 4 Section 5 – Night Shift Differential. .................................................................................................. 5 ARTICLE III – HEALTH CARE BENEFITS ....................................................................................... 5 Section 6 – Active Employee Health Plans. ....................................................................................... 5 Section 7 – Dental Benefits. ............................................................................................................... 5 Section 8 – Vision Care. .................................................................................................................... 6 Section 9 – Basic Life Insurance. ...................................................................................................... 6 Section 10 – Supplemental Life And AD&D Insurance. ................................................................... 6 Section 11 – Effective date of Coverage for New Employees. .......................................................... 6 ARTICLE IV – OTHER BENEFITS ..................................................................................................... 6 Section 12 – Holiday Compensation. ................................................................................................ 6 Section 13 – Vacation. ....................................................................................................................... 6 Section 14 – Long Term Disability. ................................................................................................... 8 Section 15 – Dependent Care Assistance Program. .......................................................................... 8 Section 16 – Medical Flexible Spending Program. ............................................................................ 8 Section 17 – Employee Assistance Plan. ............................................................................................ 8 Section 18 – Commute Incentives and Parking. ................................................................................. 8 Reopener. ............................................................................................................................................ 9 ARTICLE V –RETIREMENT ............................................................................................................... 9 Section 19 – Retirement Benefits. ...................................................................................................... 9 Section 20 – Retirement Medical Plan. ........................................................................................... 10 Section 21 – ICMA - Retirement Health Savings Plan. .................................................................. 10 Section 22 – Deferred Compensation Program. .............................................................................. 11 ARTICLE VI – MANAGEMENT BENEFIT PROGRAM ................................................................. 11 Section 23 – Professional Development Reimbursement. ............................................................... 11 Section 24 – Physical Examinations. .............................................................................................. 11 Section 25 – Excess Benefit. ............................................................................................................ 12 Section 26 – Management Annual Leave. ....................................................................................... 13 City of Palo Alto and PAPMA October 1, 2018 – June 30, 2021 Page 3 of 24 ARTICLE VII – OPERATIONAL ISSUES ....................................................................................... 13 Section 27 – Management Assignments. ......................................................................................... 13 Section 28 – Basic Work Schedules. ............................................................................................... 14 Section 29 – On Duty Workouts. ..................................................................................................... 14 Section 30 – Take Home Emergency Response Vehicles. ............................................................... 14 Section 31 – Modified Duty Assignments. ...................................................................................... 14 Section 32 – Meal Allowance. ........................................................................................................ 14 Section 33 – Uniforms. ..................................................................................................................... 14 ARTICLE VIII – ASSOCIATION AGREEMENTS ........................................................................... 15 Section 34 – Association Security. .................................................................................................. 15 Section 35 – Association Representative Access to Work Locations. ............................................. 15 Section 36 – Release Time. .............................................................................................................. 15 Section 37 – Use of City Facilities for Association Business. ......................................................... 16 Section 38 – Payroll Deduction. ....................................................................................................... 16 ARTICLE IX – LEAVE PROGRAMS ................................................................................................ 16 Section 39 – Sick Leave. .................................................................................................................. 16 Section 40 – Voluntary Catastrophic Leave Program. ..................................................................... 17 Section 41 – Leave of Absence With Pay. ...................................................................................... 17 Section 42 – Leave of Absence Without Pay. .................................................................................. 18 ARTICLE X – EMPLOYEE/EMPLOYER RELATIONS .................................................................. 19 Section 43 – Probationary Period. .................................................................................................... 19 Section 44 – Disciplinary Action and Unsatisfactory Work or Conduct. ........................................ 20 Section 45 – Grievance Procedure. .................................................................................................. 20 Section 46 – No Strikes. ................................................................................................................... 22 Section 47 – Reduction in Workforce. ............................................................................................ 22 ARTICLE XI – LOOKING FORWARD ............................................................................................. 22 Section 48 – Full Understanding. ..................................................................................................... 22 Section 49 – Legal Compliance/Severability. .................................................................................. 22 Section 50 – Duration. ...................................................................................................................... 22 APPENDIX A-1 ................................................................................................................................... 23 City of Palo Alto and PAPMA October 1, 2018 – June 30, 2021 Page 4 of 24 2018 - 2021 MEMORANDUM OF AGREEMENT City of Palo Alto and Palo Alto Police Managers' Association ARTICLE I – PREAMBLE This Memorandum of Agreement is pursuant to and subject to Sections 3500-3510 of the Government Code of the State of California, the Charter of the City of Palo Alto, and the City of Palo Alto Merit System Rules and Regulations. This Memorandum of Agreement made and entered into at Palo Alto, California, by and between the City of Palo Alto, a municipal corporation (hereinafter referred to as "City") and the Palo Alto Police Managers' Association (hereinafter referred to as "Association"), is intended to define agreements reached during the meet and confer process concerning wages, hours, working conditions, and other terms and conditions of employment for the represented group of employees. Section 1 – Recognition. On October 29, 2009, the City of Palo Alto certified the Palo Alto Police Managers' Association (Association) as a bargaining unit within the City. The City recognizes the Association as the exclusive representative of an employee group consisting solely of Police Lieutenants and Police Captains who are regularly employed by the City and others who might be amended into the representation unit from time to time under existing law and the Merit System Rules and Regulations. Section 2 – Non-Discrimination. The City and the Union agree that there shall be no discrimination of any kind because of age (over 40), race, creed, color, religion national origin, ancestry), veterans status, physical or mental disability, marital status, sexual orientation, sex (sexual, gender based or gender identity, pregnancy/childbirth), medical condition (cancer related and genetic characteristics), or on any other basis prohibited by applicable federal and State law against any employee or applicant for employment. The Association shall cooperate with the City, to the extent required by federal and State laws and regulations, in furthering the objective of Equal Employment Opportunities, as defined by Federal and State regulations. ARTICLE II – COMPENSATION Section 3 – Salary. Effective the first full pay period after ratification by the Association and adoption by the City Council, the base salary rates and ranges for classifications covered by this bargaining unit shall be increased as set forth in Appendix A-1. Additionally, the base salary rates and ranges for classifications covered by this bargaining unit shall be increased on the first full pay period following July 1, 2019 and July 1, 2020 as set forth in Appendix A-1. Actual salary within the range is determined by experience and performance, as determined by the Chief of Police. Section 4 – Working Out of Class Pay. Lieutenants or Captains fulfilling the role of an acting captain, assistant chief, or chief for individual shifts and/or a number of hours within a shift, shall not receive City of Palo Alto and PAPMA October 1, 2018 – June 30, 2021 Page 5 of 24 additional compensation. Periodically working in this capacity shall be deemed a basic duty within an employee's job description. Lieutenants and Captains working out of class for a period of four or more consecutive shifts shall be compensated at the start of the pay period with premium pay determined by the Chief of Police or his or her designee up to 10% of base pay. In accordance with Government Code 20480, an employee assigned to work in an out-of-class appointment may not exceed 960 hours worked in the appointment within a fiscal year if the employee is appointed to an upgraded position or higher classification that is vacant during recruitment for a permanent appointment. This limitation does not apply to a position that is temporarily available due to a leave of absence. Section 5 – Night Shift Differential. Night shift differential shall be paid at the rate of 5% to all personnel for all hours worked between 6:00 p.m. and 8:00 a.m. ARTICLE III – HEALTH CARE BENEFITS Section 6 – Active Employee Health Plans. The maximum City contribution towards medical premiums for eligible full time employees per employee category shall be up to a maximum of the following for any plan: Medical Premium Category PEMHCA Contribution* Total Maximum City Contribution (inclusive of PEMHCA contribution) effective from time of ratification through December 31, 2018 Total Maximum City Contribution (inclusive of PEMHCA contribution) effective January 1, 2019 Employee Only $133.00 $804 $840 Employee plus one $133.00 $1606 $1680 Employee Family $133.00 $2088 $2180 *Total City contribution includes both PEMHCA minimum contributions pursuant to Government Code section 22892 and an additional City contribution necessary to pay the cost of medical premiums up to the amount listed in the "Total maximum City contribution" columns above. Section 7 – Dental Benefits. a) The City will maintain the present level of benefits on the City-sponsored dental program for current employees and their dependents, except that the maximum benefits per calendar year shall be $2,000 effective in 1988. Dental Coverage shall include composite (tooth colored) fillings for all teeth. City of Palo Alto and PAPMA October 1, 2018 – June 30, 2021 Page 6 of 24 Effective July I, 2007, the City will provide 50% of reasonable charges, $2,000 lifetime maximum orthodontic benefit for representation unit employees and their dependents. b) Dependents will include domestic partners, as defined in the Active Employee Domestic Partners Section below. c) During the term of the agreement, the City and the Union will work together to review benefit provisions of the City's self-funded dental program. The purpose of this review is to contain benefit cost increases. Joint recommendations will be prepared for discussion during successor agreement negotiations. d) Dental implants in conjunction with one or more missing natural teeth, and removal of dental implants will be covered as a Major Dental Service at 50% usual, customary and reasonable (UCR). Section 8 – Vision Care. The City will offer vision care coverage for employees and dependents. Coverage is equivalent to $20 deductible Plan A under the Vision Service Plan, with monthly premiums paid by the employer. Dependents will include domestic partners, as defined in the Active Employee Domestic Partners Section below. Section 9 – Basic Life Insurance. The City shall provide a basic group term life insurance with Accidental Death and Dismemberment (AD&D) coverage, in an amount equal to the employee's annual basic pay (rounded to the next highest $1,000) at no-cost to the employee. AD&D pays an additional amount equal to the employee's annual basic pay (rounded to the next highest $1,000). Section 10 – Supplemental Life And AD&D Insurance. An employee may, at his/her cost, purchase additional life insurance and additional AD&D coverage equal to one-or two-times his or her annual salary. The maximum amount of life insurance available to the employee is up to $325,000 and the maximum amount of AD&D coverage available is up to $325,000. Section 11 – Effective date of Coverage for New Employees. For newly hired regular employees coverage begins on the first day of the month following date of hire for the health plan, dental plan, vision care plan, and life insurance plans if these benefits are elected. ARTICLE IV – OTHER BENEFITS Section 12 – Holiday Compensation. Police Managers will receive the twelve (12) paid City holidays outlined in the City of Palo Alto Merit Rules. Section 13 – Vacation. a) Vacation Accrual. Vacation will be accrued when an employee is in pay status and will be credited on a bi-weekly basis. Total vacation accrual at any one time may not exceed three times the annual rate of accrual. Each eligible employee shall accrue vacation at the following rate for continuous service performed in pay status: City of Palo Alto and PAPMA October 1, 2018 – June 30, 2021 Page 7 of 24 1. Less than nine (9) years - For employees completing less than nine (9) years continuous service; one hundred twenty (120) hours vacation leave per year. The City Manager may adjust the annual vacation accrual of employees hired on or after July 1, 2001 to provide up to forty (40) additional hours (i.e. to a maximum annual accrual of one hundred sixty (160) hours) for service with a prior employer. 2. Nine (9), but less than fourteen (14) years - For employees completing nine (9), but not more than fourteen (14) years continuous service; one hundred sixty (160) hours vacation leave per year. 3. Fourteen (14), but less than nineteen (19) years - For employees completing fourteen (14), but not more than nineteen (19) years continuous service; one hundred eighty (180) hours vacation leave per year. 4. Nineteen (19) or more years - For employees completing nineteen (19) or more years continuous service; two hundred (200) hours vacation leave per year. b) Vacation Use. Vacation use by police managers will be subject to approval by the Chief of Police or his/her designee. All reasonable efforts will be made to approve vacation requests while maintaining appropriate oversight of public safety operations. Employees shall complete six months continuous service before using accrued vacation leave. c) Vacation Cashout. Once each calendar year an employee may cash out eight (8) or more hours of vacation accrual in excess of eighty (80) hours from a minimum of eight (8) hours to a maximum of one hundred ( 120) hours, provided that the employee has taken at least eighty (80) hours of vacation in the previous twelve (12) months. Effective for the 2012 tax year and each subsequent year, employees must pre-elect an irrevocable number of vacation hours they will cash out during the upcoming year, up to a maximum of one hundred twenty (120) hours, prior to the start of the calendar year. Employees who do not pre- designate or elect to cash out hours will be deemed to have waived the right to cash out any vacation leave in the following year. Employees who pre-designate cash out amounts may request a cash out at any time in the designated tax year by submitting a cash out form to payroll. For employees who have not requested payment of pre-designated cash out amounts by November 1 of each year, Payroll will automatically cash out the pre-designated amount in a paycheck issued on or after November 1. d) Vacation Pay at Termination. City of Palo Alto and PAPMA October 1, 2018 – June 30, 2021 Page 8 of 24 Employees leaving the municipal service with accrued vacation leave shall be paid the amounts of accrued vacation to the date of termination. Payments for accrued vacation shall be at the employee's current rate of pay. e) Vacation Benefits 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 the employee's estate within thirty days. This proration will be computed at the last basic rate of pay. Section 14 – Long Term Disability. The City shall provide long term disability (LTD) insurance with a benefit of 2/3 monthly salary, up to a maximum benefit of $10,000 per month. The City shall pay the premium for the first $6,000 of base monthly salary. For employees whose base monthly salary exceeds $6,000, the employee shall pay the cost of the required premium based upon their monthly salary between $6,000 and $15,000. Section 15 – Dependent Care Assistance Program. The City will provide a Dependent Care Assistance Program for employees according to the provisions of the Federal Economic Recovery Act of 1981, Code Sections 125 and 129. The program will be available to representation unit employees beginning with pay period number 1 of 1992, and remain in effect subject to a reasonable minimum participation level and availability of third-party administrative services at a reasonable cost. Section 16 – Medical Flexible Spending Program. The City will provide a Medical Flexible Spending Program for Association members allowing them to use pre-tax deferrals for reimbursement of excess or uncovered medical, dental and vision expenses. The plan will follow existing plan guidelines and conform to all applicable laws and regulations. Section 17 – Employee Assistance Plan. The Employee Assistance Plan (EAP) provides employees with confidential personal counseling, work and family related issues, eldercare, substance abuse, etc. Section 18 – Commute Incentives and Parking. 1. Civic Center Parking. Employees assigned to Civic Center and adjacent work locations. The City will provide a Civic Center Garage parking permit. Employees hired after June 30, 1994 may initially receive a parking permit for another downtown lot, subject to the availability of space at the Civic Center Garage. 2. Alternative Commute Incentives: Employees who qualify may voluntarily elect one commute incentives, including but not limited to the following options, for those using an eligible commute alternative on 60% or more of their scheduled work days per month: a. Public Transit and Vanpool. The City provides tax-free commute incentives up to the current IRS limit, as may be amended from time to time, (currently $125/month) are available through the Commuter Check Direct (CCD) website for employees using Bay Area public transportation or riding in a registered vanpool at least 60% of their scheduled work days. Administration of the Commuter Check benefit shall be subject to the rules and regulations of the third- party administrator. City of Palo Alto and PAPMA October 1, 2018 – June 30, 2021 Page 9 of 24 b. Go Pass. The Go Pass program will offer civic center and other downtown-based employees a Caltrans Go Pass that allows unlimited rides on Caltrain in all zones seven days per week, to any City of Palo Alto employee. c. Bicycle. The City will provide employees with a tax-free incentive of $20 per month to eligible employees who ride a bicycle to work. d. Carpool. The City will provide with a taxable incentive of $30 per month to each eligible employee in a carpool with two or more licensed drivers. e. Walk. The City will provide employees with a taxable incentive of $20 per month to eligible employees who walk to work. Reopener. It is the City's interest to reduce single occupancy vehicle trips to the extent possible in order to address current challenges. During the term of this agreement, upon written request by the City, the parties shall meet and confer through the impasse process if necessary on changes to the City's commute incentive and parking program adopted by the City Council. ARTICLE V –RETIREMENT Section 19 – Retirement Benefits. A. "3%@50" Safety Retirement (Employees hired on or before December 7, 2012) For employees hired by the City of Palo Alto on or before December 7, 2012, the California Public Employees' Retirement System (CalPERS) retirement formula benefit known as the "3 percent at 50 (3%@50)," per California Government Code section 21362.2, shall continue in effect with the final salary determination for such employees of the "single highest one (1) year period" per California Government Code section 20042. All unit members in the 3% @ 50 safety retirement plan shall pay the full 9% CalPERS member contribution. This contribution is pre-tax to the extent allowable by law. B. Second Tier "3% at 55" Safety Retirement ("Classic" Employees) For those employees hired on or after December 8, 2012 through December 31, 2012 or are classic members as defined by CalPERS, the CalPERS retirement formula benefit known as the "3 percent at 55 (3%@55)," per Government Code section 21363.1, with the final salary determination for such employees of the "three (3) highest consecutive years" based on the highest average annual compensation earnable by the member during three (3) consecutive years of employment immediately preceding retirement or the three-year period otherwise designated by the member per Government Code section 20037. All unit members in the second tier shall pay the full 9% CalPERS member contribution. This contribution is pre-tax to the extent allowable by law. C. Third Tier "2.7% at 57” Safety Retirement (“New” PEPRA Employees) For those employees hired on or after January 1, 2013, the CalPERS retirement formula benefit known as "2.7 percent at 57 (2.7% at 57)," with the final salary determination for such employees of the "three (3) highest consecutive years." The initial contribution rate will be at least 50% of the normal cost rate at retirement as determined by CalPERS. This contribution is pre-tax to the extent allowable by law. D. Additional Employee PERS Contributions City of Palo Alto and PAPMA October 1, 2018 – June 30, 2021 Page 10 of 24 Effective the pay period that includes June 30, 2017, all employees regardless of pension formula in this unit shall, in addition to the Member Contribution required, pay a3% towards the Employer share of Pension. Effective the pay period that includes June 30, 2021, all employees regardless of pension formula in this unit shall, in addition to the Member Contribution required, pay an additional 1% towards the Employer share of Pension for a total of 4%. Such contributions under CalPERS 20516 will be provided on a pre-tax basis to the extent allowable by law. Section 20 – Retirement Medical Plan. A. Retiree Medical Coverage for Unit Employees Hired Before January 1, 2004: Monthly City-paid premium contributions for a retiree-selected PEMHCA optional plan will be made in accordance with the Public Employees' Medical and Hospital Care Act Resolution for employees hired before January 1, 2004 as outlined below. For employees who retire before June 1, 2012, the City will pay up to the monthly medical premium for the 2nd most expensive plan offered to PMA employees among the existing array of plans. For employees who retire on or after June 1, 2012, The City contribution towards retiree medical shall be the same contribution amount it makes for active City employees. Effective upon ratification and adoption of this Agreement (Scheduled for January 11, 2016), the City shall provide active unit employees who were hired before January 1, 2004 with a one-time opportunity to opt-in to retiree health benefits provided under California Government Code section 22893. Eligible employees who wish to exercise this option shall inform the People, Strategy, and Operations department of their election in writing no later than 90 days following the ratification and adoption of this Agreement. B. 20-Year Vesting Schedule for Retiree Medical Coverage for Unit Employees Hired on or After January 1, 2004 and employees who chose to opt-in to retiree health benefits provided under California Government Code section 22893 as outlined above: The retiree health benefit provided in California Government Code section 22893 shall apply to all employees hired on or after January I, 2004 and employees who opt-in as outlined above. Under this law, an employee is eligible to receive Fifty (50) percent of benefit after ten (10) years; each additional service credit year after Ten (10) years will increase employer credit by Five (5%) percent until Twenty (20) years is reached at which time employee is eligible for One Hundred (100%) percent of annuitant-only coverage and Ninety (90%) percent of the additional premium for dependents. Section 21 – ICMA - Retirement Health Savings Plan. The City provides an ICMA retirement health savings plan for Association members. The ICMA retirement health savings plan is subject to applicable IRS rules and plan guidelines as well as any other applicable laws. Each Association member shall make a pre-tax contribution to the plan as follows: 1. Each member shall contribute 1% of their base salary bi-weekly into the plan. City of Palo Alto and PAPMA October 1, 2018 – June 30, 2021 Page 11 of 24 2. Failure by each member to contribute will deem the health savings plan out of compliance with IRS and plan guidelines. 3. The administrative fee shall be paid by the Association member. The manner and amount of contributions may be periodically modified by agreement of both parties. Section 22 – Deferred Compensation Program. The City will provide a Deferred Compensation Program for employees according to the provisions of the plans and applicable IRS guidelines. ARTICLE VI – MANAGEMENT BENEFIT PROGRAM Section 23 – Professional Development Reimbursement. The purpose of this program is to provide employees with resources to improve and supplement their job and professional skills. Reimbursement for authorized self-improvement activities may be granted to each Association employee up to a maximum of five hundred dollars ($500) per fiscal year. A departmental training fund of one thousand dollars per employee ($1,000) will be established for subject matter, leadership or other training that the Department Director identifies as a need for employees within that Department. The following items are eligible for reimbursement: a) Civic and professional association memberships b) Conference participation and travel expenses, which must occur within the compensation plan period. c) Educational programs, books and videos, and tuition reimbursement designed to maintain or improve the employee's skills in performing his or her job or future job opportunities, should support the City's mission or be necessary to meet the educational requirements for qualification for employment. Permissible educational expenses are refresher courses, courses dealing with current developments, academic or vocational courses, as well as the travel expenses associated with the courses as defined by the City's travel expense report from the Policy & Procedures Manual Section 1-02 ASD. d) Professional and trade journal subscriptions not to exceed 12 months. Approval will be at discretion of department head and signature is required on reimbursement form. Amounts under this professional development program will be pro-rated in the first year of employment or promotion. Section 24 – Physical Examinations. All management and professional employees are eligible to receive an annual physical examination as follows: a) Use the periodic health exam benefit as provided under the PERS Health Plan option you have selected. Each of the PERS Health Plans provides for a periodic physical examination. The examination must be performed by your primary care physician – unless he/she refers you to another physician. City of Palo Alto and PAPMA October 1, 2018 – June 30, 2021 Page 12 of 24 b) The types of tests and the frequency of the tests cannot exceed AMA guidelines. The guidelines are a suggested minimum based on research studies concerning preventative care. The judgment of your physician is the final determinant for your care. c) Any additional necessary asymptomatic tests that are required by your physician that are not covered by your health plan will be reimbursed by the City. Any symptomatic tests will be covered under your PERS Health Plan. The Reimbursement for Periodic Physical Exam Form is available on the Human Resources Intranet site. This benefit will not be pro-rated. Section 25 – Excess Benefit. This benefit is designed to meet the requirements of Section 125 of the Internal Revenue Code. Every calendar year, each employee will be provided with $2,500 annually that they can designate among the following options: a) Medical Flexible Spending Account (Medical FSA). Provides reimbursement for excess medical/dental/vision, or expenses that are incurred by employees and their dependents which are not covered or reimbursed by any other source, including existing City-sponsored plans. This includes prescribed medications and co-payments as well as over-the-counter drugs, including: antacids, allergy medicines, pain relievers and cold medicines. However, nonprescription dietary supplements (e.g. vitamins, etc.) toiletries (e.g. toothpaste), cosmetics (e.g. face cream), and items used for cosmetic purposes (e.g. Rogaine) are not acceptable. b) Dependent Care Flexible Spending Account (Dependent Care FSA). Provides reimbursement for qualified dependent care expenses under the City's Dependent Care Assistance Program (DCAP), subject to the following limits: Dependent care expenses will be reimbursed only to the extent that the amount of such expenses reimbursed under this Management Benefit Program, when added to the amount (if any) of annual dependent care expenses that the participant has elected under the City's Flexible Benefits Plan, do not exceed the maximum permitted under the DCAP. 1) The annual amount submitted for reimbursement cannot exceed the income of the lower-paid spouse. 2) The expenses must be employment-related expenses for the care of one or more dependents who are under 13 years of age and entitled to a dependent deduction under Internal Revenue Code section 151 (e) or a dependent who is physically or mentally incapable of caring for himself or herself. 3) The payments cannot be made to a child under 19 years of age or to a person claimed as a dependent. 4) If the services are provided by a dependent care center, the center must comply with all state and local laws and must provide care for more than six individuals (other than a resident of the facility). 5) Dependent care expenses not submitted under this section are eligible under the City Dependent Care Assistance Plan (DCAP). However, the maximum amount reimbursed under DCAP will be reduced by any amount reimbursed under the Excess Benefit Plan. City of Palo Alto and PAPMA October 1, 2018 – June 30, 2021 Page 13 of 24 c) Non-taxable Professional Development Spending Account. Provides reimbursement for Non-Taxable professional development expenses (e.g., job-related training and education, seminars, training manuals, etc.) to the extent they are not paid or reimbursed under any other plan of the City. d) Gym or Health Club Memberships. Provides reimbursement for annual or monthly memberships, including personal trainers. Reimbursement of this expense is taxable to the employee. e) Deferred Compensation. The $2,500 excess benefit provided in this section made on a one-time contribution basis on election by the employee towards the employee's City-sponsored 457 Deferred Compensation plan with either ICMA-RC or the Hartford. Amounts designated by employees to either the Medical FSA, Dependent Care FSA, or Professional Development options are done so on a "use -it-or-lose-it" basis. This means that any amounts designated and not used by the end of the calendar year ( or end of the extended grace period for the medical FSA) will be forfeited by the employee and returned to the plan. Specified amounts under this benefit will be applied on a pro-rata basis for employees who are part- time or who are in a management or professional pay status for less than the full fiscal year. Such benefits will be pro-rated in the first year of employment (based on hire date) but will not be pro- rated upon separation of employment. Section 26 – Management Annual Leave. At the beginning of each calendar year regular management employees will be credited with 80 hours of management annual leave. This leave is granted in recognition of the extra hours management employees work over their regular schedule. This leave may be taken as paid time off, added to vacation accrual (subject to vacation accrual limitations), taken as cash or taken as deferred compensation. When time off is taken under this provision, I 0-hour shift workers will receive one shift off for each 8 hours charged; 24-hour shift workers will receive one-half shift off for each 8 hours charged. Entitlement under this provision will be reduced on a prorated basis for part-time status, or according to the number of months in paid status during the fiscal year; employees who have used more than the pro-rated share at the time they leave City service shall be required to repay the balance or have it deducted from their final check. Unused balances as of the end of the calendar year will be paid in cash unless a different option as indicated above is elected by the employee. ARTICLE VII – OPERATIONAL ISSUES Section 27 – Management Assignments. The Chief of Police or his/her designee shall have the authority to make management assignments at his or her discretion. Where possible, these assignments should take into account the needs of the organization, development of the employee and individual employee desires. City of Palo Alto and PAPMA October 1, 2018 – June 30, 2021 Page 14 of 24 Section 28 – Basic Work Schedules. Generally, police managers will be expected to work flexible schedules and reasonably adjust their hours to oversee their employee groups, manage 24/7 law enforcement operations, perform routine work, complete daily assignments, and occasionally attend meetings or other events outside their normal work shifts. Basic work schedules will be the 4/10 schedule. Section 29 – On Duty Workouts. Police managers who complete the yearly Wellness Program requirements may participate in an on-duty workout for a reasonable period as determined by the Chief, as long as it does not interfere with the performance of the employee's job duties, for which the employee will remain accountable. Applicable guidelines and conditions are outlined in the Department's Wellness Program Policy which the City may change from time to time. Section 30 – Take Home Emergency Response Vehicles. Subject to approval by the City Manager and the Police Chief, Police Captains will continue the current take home emergency response vehicle program which allows for the immediate and emergent response to public safety incidents involving the City. The specific use and restrictions for driving these vehicles shall adhere to the guidelines outlined in the then current version of City Policy and Procedure 4-01. Section 31 – Modified Duty Assignments. In cases of non-work-related injury, illness or pregnancy, an employee, upon approval of the department head, City Risk Manager and the employee's doctor, may return to work or continue work with doctor-approved limited or alternative duty pursuant to Policy & Procedure 2-04. Approval for reasonable accommodation such as limited/alternative duty shall be based upon department ability to provide work consistent with medical limitations and the length of time of the limitations. The City doctor may be consulted in determining work limitations. Any assignment to a limited/alternative duty will be on a temporary basis. Section 32 – Meal Allowance. Police managers attending night meetings will be eligible for meal re- imbursement under the guidelines set forth in the then current version of City Policy and Procedure No. 1-02. Section 33 – Uniforms. a) The City will supply complete uniforms to all sworn personnel. All uniform items are the property of the City. One complete uniform consists of: (I) three pair of trousers, (2) three short-sleeved shirts with patches and zippers if desired, (3) three long-sleeved shirts with patches and zippers if desired, (4) three cotton or two synthetic fiber turtleneck shirts, (5) hat, (6) duty jacket with patches, (7) dress jacket with patches, (8) necktie, and (9) rain gear. b) At the time of initial employment, every sworn employee will be issued one complete uniform. Uniform items will be replaced on an as-needed basis subject to verification by management. c) The City shall provide uniform cleaning for sworn representation unit personnel. d) Personnel are accountable for all uniform items issued to them. If a particular item is lost or damaged due to employee negligence, the employee will be required to reimburse the City for value of the item(s) lost or damaged. e) The City shall reimburse employees for the full cost of job-related boots upon City of Palo Alto and PAPMA October 1, 2018 – June 30, 2021 Page 15 of 24 verification of such purchase by the employees. The City will make the reimbursement only upon proof that the previous boots have become unserviceable due to wear or damage. (Job-related boots shall mean well-constructed, high topped boots that provide full ankle and foot support, which are selected from list agreed to by Management and the Association.) Employees are responsible for the full cost of any low-top, black shoes that are worn with the uniform. ARTICLE VIII – ASSOCIATION AGREEMENTS Section 34 – Association Security. a) When a person is hired in any of the covered job classifications, the City shall notify that person that the Association is the recognized bargaining representative for the employee in said Unit and give the employee a current copy of the Memorandum of Agreement. b) If there is no disruption of work, members of the Association Board of Directors may use a reasonable amount of on-duty time without loss of pay to meet with Management specifically related to representation of employees. Such release time must be cleared in advance by the Chief (or his/her Designee) who is a member of management. For purposes of this section, representation shall include: (i) Meetings with represented employees or management related to a grievance or disciplinary action, including investigation and preparation time. (ii) A meeting with management related to benefits, working conditions or other terms and conditions of employment. Section 35 – Association Representative Access to Work Locations. Employee and non-employee representatives of the Association will be granted access to City work locations to conduct business related to the administration or negotiation of the parties' Memorandum of Understanding, as long as advance arrangements for such visits have been made with the affected department manager and no disruption of work occurs. Advance arrangement shall normally include not less than one hour's notice in the case of an employee Association representative, two hours in the case of non- employee Association representatives. Non-employee representatives must also notify the Human Resources Department Manager (or designee) of the time, date and location of the representative's intended visit. Section 36 – Release Time. The Association President or his or her-designee in the representation unit may use a reasonable amount of time without loss of pay for matters related to the bargaining process, labor relations, and administration of the MOA, violations of the MOA, grievances, disciplinary issues, and training for association members. Release time shall normally be approved in advance by the department head and must not detract from the performance of the representative's City job duties, for which he or she will remain accountable. City of Palo Alto and PAPMA October 1, 2018 – June 30, 2021 Page 16 of 24 Section 37 – Use of City Facilities for Association Business. Any use of City facilities shall be governed by the then current version of City Policy and Procedure No. 4-07. Section 38 – Payroll Deduction. The City shall deduct Association membership dues and any other mutually agreed upon payroll deduction from the bi-weekly pay of member employees. The dues deduction must be authorized in writing by the employee on an authorization card acceptable to the City and the Association. The City shall remit the deducted dues to the Association as soon as possible after deduction. ARTICLE IX – LEAVE PROGRAMS Section 39 – Sick Leave. a) Statement of Policy. Sick leave shall be allowed and used only in case of actual personal sickness or disability, medical or dental treatment, or as authorized in Subsection (i), personal business chargeable to sick leave. Up to 8 days sick leave per year may be used for illness in the immediate family (spouse, child, parent, parent-in-law, brother, sister, registered domestic partner, or close relative residing in the household of the employee). b) Eligibility. Regular and part-time employees shall be eligible to accrue and use sick leave. c) Accrual. Sick leave shall be accrued bi-weekly provided the employee has been in a pay status for 50 percent or more of a bi-weekly pay period. Sick leave shall be accrued at the rate of 3.7 hours per bi-weekly pay period. d) Accumulation. Sick leave accrual accumulation shall be limited to 1,000 hours with no payoff provision for unused balance at termination. e) Use. Sick leave may be used as needed and approved, to the point of depletion, at which time the employee will no longer receive pay for sick leave. A new employee may, if necessary, use up to forty-eight hours or shift equivalent of sick leave at any time during the first six months of employment. Any negative balances generated by such utilization will be charged against future accrual or deducted from final paycheck in the event of termination. 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 his/her option, choose either to receive the long-term disability benefits or to utilize the remainder of his/her accrued sick leave prior to applying for long-term disability benefits. Sick leave will not be granted for illness occurring during any leave of absence other than sick leave, unless the employee can demonstrate that it was necessary to come under the care of a doctor while on such other leave of absence. City of Palo Alto and PAPMA October 1, 2018 – June 30, 2021 Page 17 of 24 When an employee finds it necessary to be absent for any reason, he/she should contact the Department as soon as possible, but no later than the start of the scheduled shift on the first working day of absence, and shall regularly report by the start of each subsequent shift unless hospitalized. Such reports may be subject to written documentation if there is reasonable evidence that sick leave abuse has occurred. Sick leave shall not be granted unless such report or advance accounting has been made, provided, however, that the department head may grant exception to this policy where the circumstances warrant. Documentation may also be required if there is a reasonable basis to believe that the employee may not be medically fit to return to work. f) Depletion of Sick Leave Benefits. Upon depletion of sick leave or the beginning of the period to be covered by payments under the long-term disability group insurance coverage, whichever comes first, an employee may be granted a medical leave of absence without pay for a period not exceeding sixty days. If the employee is unable to return to work at the end of this period, he/she must request further medical leave which will be subject to the approval of the City Manager. If further leave is granted, the employee must notify the City of intent to return to work every thirty days. If further leave is not granted, the employee's service with the City shall be considered terminated. g) Forfeiture Upon Termination. Employees leaving the municipal service shall forfeit all accumulated sick leave, except as otherwise provided by law. In the event that notice of resignation is given, sick leave may be used only through the day which was designated as the final day of work by such notice. h) Personal Business Leave Chargeable to Sick Leave. Employees may use up to twenty (20) hours of sick leave per calendar year for personal business. The scheduling of such leave is subject to the approval of the appropriate level of management. Section 40 – Voluntary Catastrophic Leave Program. If permitted by agreement between the City and the Palo Alto Police Officers' Association (P.O.A.) members of the Palo Alto Police Managers' Association representation unit may participate in the "Voluntary Leave Program" applicable to the P.O.A. representation unit to assist in maintaining the pay of an employee who is eligible by virtue of a qualifying catastrophic medical condition. Such participation, when authorized by City- P.O.A. agreement, shall be allowed only as long as the donors remain anonymous (unless disclosure is required by law). Otherwise, said program shall be governed by the conditions and restrictions set forth in the City-P.O.A. Memorandum of Agreement. Section 41 – Leave of Absence With Pay. The City Manager may grant a regular employee under his/her control a leave of absence with pay for a period not exceeding thirty calendar days for reasons he/she deems adequate and in the best interest of the City. The City Council may grant a regular employee a leave of absence with pay for a period not to exceed one year for reasons the Council considers adequate and in the best interest of the City. a) Subpoenas: leave of absence. City of Palo Alto and PAPMA October 1, 2018 – June 30, 2021 Page 18 of 24 Regular employees who are subpoenaed in their capacity as a City employee to appear as witnesses on behalf of the State of California or any of its agencies may be granted leaves of absence with pay from their assigned duties until released. The employee shall remit all fees received for such appearances to the City within thirty days from the termination of his or her services as a witness. Compensation for mileage or subsistence allowance shall not be considered as a fee and shall be retained by the employee. b) Employee's time off to vote. Pursuant to Elections Code section 14000, when the employee is unable to vote outside of the employee's work hours, up to two (2) hours' time off with pay to vote at any general or direct primary election shall be granted at the beginning or end of the employee's scheduled shift, whichever allows the most free time for voting and the least time off from the regular working shift. Such time off with pay to vote shall only be granted if the employee provides at least two working days' notice that time off for voting is desired, unless the nature of the employee's schedule prevents the employee from anticipating the need for time off to vote. c) Leave of absence; death in family. Leave of absence with pay of three (3) days shall be granted an employee by the head of his or her department in the event of death in the employee's family, but shall not exceed a total of six (6) paid work days per calendar year. For purposes of this section, family is defined as wife, husband, son, step-son, son-in-law, daughter, step-daughter, daughter-in-law, father, step-father, father-in- law, mother, step-mother, mother-in-law, brother, step-brother, brother-in-law, sister, step-sister, sister-in-law, grandmother, grandmother-in-law, 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. Requests for leave in excess of three (3) days shall be subject to the approval of the City Manager. Approval of additional leave will be based on the circumstances of each request with consideration given to the employee's need for additional time off. d) Jury duty: leave of absence. Employees required to report for jury duty 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 for such duties other than mileage or subsistence allowances within thirty days from the termination of his/her jury service. Section 42 – Leave of Absence Without Pay. 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) Other leaves. City of Palo Alto and PAPMA October 1, 2018 – June 30, 2021 Page 19 of 24 Leaves of absence without pay is at the discretion and approval of management. Unauthorized leave of absence/job abandonment may result in disciplinary action up to and including termination of employment. During unpaid leaves of absence for disability or other reasons, the employee may elect and the City may require the employee to use accrued paid vacation and sick leave in a manner consistent with state and federal law. All leaves without pay must be approved in advance and in writing by the department to be effective. c) Approval of department head. Leave of absence without pay for one week or less may be granted by the department head, depending on the merit of the individual case. d) Approval by City Manager. Leave of absence without pay in excess of one week's duration may be granted by the City Manager on the merit of the case, but such leave shall not exceed twelve months' duration. e) Absence without leave. Unauthorized leave of absence shall be considered to be without pay, and reductions in the employee's pay shall be made accordingly. Unauthorized leave of absence may result in termination of employment. f) Leave of absence; death outside the immediate family. Leave without pay may be granted a regular employee by his/her department head in the event of death to family members other than one of the immediate family, such leave to be granted in accordance with Subsections (b), (c), (d) and (e). g) Military leave of absence. State and federal law shall govern the granting of military leaves of absence and the rights of employees returning from such absence. ARTICLE X – EMPLOYEE/EMPLOYER RELATIONS Section 43 – Probationary Period. a) All original appointments to full-time or part-time regular municipal service positions shall be tentative and subject to a probationary period of twelve months for management employees b) The probationary period shall be regarded as part of the testing process and shall be utilized for closely observing the employees work, for securing the effective adjustment of a new employee to his/her position, and for rejecting any probationary employee whose performance does not meet the acceptable standards of work. c) A report of performance of each probationary employee shall be made by the department head and shown to the probationary employee on or before expiration of the probationary period. d) During the probationary period a new employee may be suspended, demoted or terminated at any time by the appointing authority without cause and without right of appeal or to submit a grievance. City of Palo Alto and PAPMA October 1, 2018 – June 30, 2021 Page 20 of 24 Section 44 – Disciplinary Action and Unsatisfactory Work or Conduct. Disciplinary action shall be governed by the City’s Merit Rules and Regulation, Palo Alto Police Department Policy 340 on Conduct, the Palo Alto Police Department Internal Affairs and Complaint Investigations Guidelines, and the Police Officer Procedural Bill of Rights Act. Section 45 – Grievance Procedure. a) The City and the Association recognize that early settlement of grievances is essential to sound employee-employer relations. The parties seek to establish a mutually satisfactory method for the settlement of employee grievances, or Association grievances, as provided for below. In presenting a grievance, the aggrieved and/or his or her representative is assured freedom from restraint, interference, coercion, discrimination or reprisal. b) Definition. A Grievance is: 1. An unresolved complaint or dispute regarding the application or interpretation of this Memorandum of Agreement 2. An appeal from a disciplinary action of any kind against an employee covered by this Memorandum of Agreement. c) Access to the Grievance Procedure. Except as otherwise provided in the Memorandum of Agreement for probationary employees, all employees represented by the Association may file and process a grievance. Such aggrieved employees may be represented by the Association or may represent themselves in preparing and presenting their grievance at any level of review. The Association may file a grievance when an Association right under this Memorandum of Agreement not directly related to an individual employee becomes subject to dispute. d) Conduct of Grievance Procedure. 1. The time limits specified in this Article may be extended by written mutual agreement of the aggrieved employee or the Association and the reviewer concerned. 2. If a decision is not rendered within a stipulated time limit, the aggrieved employee may immediately appeal to the next step. 3. The grievance will be considered settled if the decision at any step is not appealed within the specified time limit. 4. The aggrieved employee or the Association and Human Resources Director may mutually agree in writing to waive any step of the grievance procedure. 5. Written grievances shall be submitted on forms provided by the City or on forms that are mutually agreeable to the City and the Association. 6. Any retroactive monetary arbitrator award or settlement by mutual agreement shall not extend more than ninety (90) days before the date that the grievance was filed in writing at Step 2 below. The following steps shall apply: City of Palo Alto and PAPMA October 1, 2018 – June 30, 2021 Page 21 of 24 Step I. The aggrieved employee will first attempt to resolve the grievance through informal discussions with his or her immediate supervisor by the end of the tenth working day following the discovery of or the incident upon which the grievance is based. Every attempt will be made to settle the issue at this level. (Note: For purposes of time limits, the working days are considered to be Monday through Friday, exclusive of City holidays.) Appeals of disciplinary action should be processed through the procedures outlined in Step 2-3 of the Grievance Procedure. Step II. If the grievance is not resolved through the informal discussion, the employee will reduce the grievance to writing and submit copies to the department head or his/her designee within ten (10) working days of the discussion with the immediate supervisor. The department head or his/her designee shall have ten (10) working days from the receipt of a written grievance to review the matter and prepare a written statement. Step III. If the grievance is not resolved at Step II, the aggrieved employee may choose between final and binding resolution of the grievance through appeal to the City Manager or through appeal to final and binding grievance arbitration. For the term of this Memorandum of Agreement, appeals to final and binding arbitration may be processed only with Association approval. All Step III appeals must be filed in writing at the Human Resources Department Office within ten (10) working days of receipt of the Step II appeal. If the aggrieved employee 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. The City Manager shall render a written decision to all parties directly involved within ten working days after receiving the employee's appeal. If the aggrieved employee elects final and binding arbitration in accordance with this provision, the parties shall mutually select an arbitrator. 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 appealed to the arbitrator. The arbitrator shall be without power to make any decision: 1) Regarding matters of interest. 2) Contrary to, or inconsistent with or modifying in any way, the terms of this Memorandum of Agreement. 3) Granting any wage increases or decreases. City of Palo Alto and PAPMA October 1, 2018 – June 30, 2021 Page 22 of 24 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. If 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 this section and without regard to the merits of the grievance. 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 arbitrator's decision shall be submitted to the City, the aggrieved employee and the Association. All direct costs emanating from the arbitration procedure shall be shared equally by the City and the aggrieved employee or the Association. Section 46 – No Strikes. The Association, its representatives, or members, shall not engage in or cause, instigate, encourage, sanction, or condone a strike, withholding of services, concerted abuse of leave of absence provisions, work stoppage or work slowdown of any kind. No employee shall refuse to cross any picket line in the conduct of Police Department business, nor shall the Association, its representatives, or members discriminate in any way toward anyone who refuses to participate in a strike, or any of the job actions cited above. Section 47 – Reduction in Workforce. In the event of reductions in force, they shall be accomplished wherever possible through attrition. If the work force is reduced in the Association, the City will give an employee impacted by a potential lay off 30 days' notice prior to any reduction in force. ARTICLE XI – LOOKING FORWARD Section 48 – Full Understanding. This Memorandum of Agreement contains the full and entire understanding of the parties regarding the matters set forth herein. The parties agree that they shall each carry out their responsibilities under the MOA in good faith. Section 49 – Legal Compliance/Severability. If any provision herein contained is rendered or declared invalid by reason of existing State or Federal legislation or by reason of State Supreme Court or U. S. Supreme Court ruling, such invalidation of such part or portion of this Memorandum of Agreement shall not invalidate the remaining portions hereof, and they shall remain in full force and effect, insofar as such remaining portions are severable. Section 50 – Duration. The term of this Agreement shall commence on October 1, 2018 and shall expire on June 30, 2021. City of Palo Alto and PAPMA October 1, 2018 – June 30, 2021 Page 23 of 24 FOR: FOR: Palo Alto Police Management Association City of Palo Alto APPENDIX A-1 James Reifschneider, Lieutenant James Keene, City Manager April Wagner, Lieutenant Rumi Portillo, Human Resources Director Andrew Binder, Captain Robert Jonsen, Police Chief Nicholas Raisch, Manager of Employee and Labor Relation Tori Anthony, Senior HR Administrator City of Palo Alto and PAPMA October 1, 2018 – June 30, 2021 Page 24 of 24 Effective the first full pay period following adoption (4% Increase - LT and 1% Increase - CPT) Job Code FLSA Classification Title Grade Code Min Hourly Rate Mid Hourly Rate Max Hourly Rate Approx Mid-Point Monthly Salary Approx Mid-Point Annual Salary 147 Exempt Police Captain-Adv 023 74.15$ 92.68$ 111.22$ 16,065.00$ 192,774.00$ 149 Exempt Police Liet-Adv 086 66.24$ 82.80$ 99.36$ 14,352.00$ 172,224.00$ Effecitve the first full pay period following July 1, 2019 - 4% Increase Job Code FLSA Classification Title Grade Code Min Hourly Rate Mid Hourly Rate Max Hourly Rate Approx Mid-Point Monthly Salary Approx Mid-Point Annual Salary 147 Exempt Police Captain-Adv 023 77.12$ 96.39$ 115.67$ 16,708.00$ 200,491.00$ 149 Exempt Police Liet-Adv 086 68.90$ 86.12$ 103.35$ 14,928.00$ 179,130.00$ Effective the first full pay period following July 1, 2020 - 4% Increase Job Code FLSA Classification Title Grade Code Min Hourly Rate Mid Hourly Rate Max Hourly Rate Approx Mid-Point Monthly Salary Approx Mid-Point Annual Salary 147 Exempt Police Captain-Adv 023 80.20$ 100.25$ 120.30$ 17,377.00$ 208,520.00$ 149 Exempt Police Liet-Adv 086 71.66$ 89.57$ 107.49$ 15,526.00$ 186,306.00$ City of Palo Alto Police Management Association Salary Schedule Memorandum of Agreement City of Palo Alto and Palo Alto Police Management Association (PAPMA) January October 1, 2016 2018 – June 30, 202117 City of Palo Alto and PAPMA January 11, 2016October 1, 2018 – June 30, 202117 Page 2 of 24 TABLE OF CONTENTS ARTICLE I – PREAMBLE .................................................................................................................... 4 Section 1 – Recognition. .............................................................................................................. 4 Section 2 – Non-Discrimination. .................................................................................................. 4 ARTICLE II – COMPENSATION .......................................................................................................... 4 Section 3 – Salary. ....................................................................................................................... 4 Section 4 – Working Out of Class Pay. ......................................................................................... 5 Section 5 – Night Shift Differential. ............................................................................................. 5 ARTICLE III – HEALTH CARE BENEFITS.............................................................................................. 5 Section 6 – Active Employee Health Plans. ................................................................................. 5 Section 7 – Dental Benefits. ...................................................................................................... 65 Section 8 – Vision Care. .............................................................................................................. 6 Section 9 – Basic Life Insurance. ................................................................................................. 6 Section 10 – Supplemental Life And AD&D Insurance. ............................................................. 76 Section 11 – Effective date of Coverage for New Employees. .................................................. 76 ARTICLE IV – OTHER BENEFITS ...................................................................................................... 76 Section 12 – Holiday Compensation. ........................................................................................ 76 Section 13 – Vacation. .............................................................................................................. 76 Section 14 – Long Term Disability. .............................................................................................. 8 Section 15 – Dependent Care Assistance Program. ................................................................... 8 Section 16 – Medical Flexible Spending Program. ...................................................................... 8 Section 17 – Employee Assistance Plan. ................................................................................... 98 Section 18 – Commute Incentives and Parking. ........................................................................ 98 Reopener. .................................................................................................................................... 9 ARTICLE V –RETIREMENT ................................................................................................................. 9 Section 19 – Retirement Benefits. ............................................................................................... 9 Section 20 – Retirement Medical Plan. .................................................................................... 10 Section 21 – ICMA - Retirement Health Savings Plan. ............................................................. 11 Section 22 – Deferred Compensation Program. ...................................................................... 11 ARTICLE VI – MANAGEMENT BENEFIT PROGRAM ........................................................................ 11 Section 23 – Professional Development Reimbursement. ....................................................... 11 Section 24 – Physical Examinations. ......................................................................................... 12 Section 25 – Excess Benefit. ...................................................................................................... 12 City of Palo Alto and PAPMA January 11, 2016October 1, 2018 – June 30, 202117 Page 3 of 24 Section 26 – Management Annual Leave. ............................................................................ 1413 ARTICLE VII – OPERATIONAL ISSUES ............................................................................................. 14 Section 27 – Management Assignments. .................................................................................. 14 Section 28 – Basic Work Schedules. ......................................................................................... 14 Section 29 – On Duty Workouts. ............................................................................................... 14 Section 30 – Take Home Emergency Response Vehicles. ......................................................... 14 Section 31 – Modified Duty Assignments. ............................................................................ 1514 Section 32 – Meal Allowance. .............................................................................................. 1514 Section 33 – Uniforms. ...................................................................................................... 151415 ARTICLE VIII – ASSOCIATION AGREEMENTS .................................................................................. 15 Section 34 – Association Security. ............................................................................................ 15 Section 35 – Association Representative Access to Work Locations. ............................... 161516 Section 36 – Release Time. ........................................................................................................ 16 Section 37 – Use of City Facilities for Association Business. ..................................................... 16 Section 38 – Payroll Deduction. ................................................................................................ 16 ARTICLE IX – LEAVE PROGRAMS .................................................................................................... 16 Section 39 – Sick Leave. ............................................................................................................. 16 Section 40 – Voluntary Catastrophic Leave Program. ............................................................... 18 Section 41 – Leave of Absence With Pay.................................................................................. 18 Section 42 – Leave of Absence Without Pay. ............................................................................ 19 ARTICLE X – EMPLOYEE/EMPLOYER RELATIONS ........................................................................... 20 Section 43 – Probationary Period. ............................................................................................. 20 Section 44 – Disciplinary Action and Unsatisfactory Work or Conduct. ................................... 20 Section 45 – Grievance Procedure. ........................................................................................... 20 Section 46 – No Strikes. ......................................................................................................... 2322 Section 47 – Reduction in Workforce. ...................................................................................... 23 ARTICLE XI – LOOKING FORWARD ................................................................................................. 23 Section 48 – Full Understanding. .............................................................................................. 23 Section 49 – Legal Compliance/Severability. ............................................................................ 23 Section 50 – Duration. ............................................................................................................... 23 APPENDIX A-1 ................................................................................................................................ 24 City of Palo Alto and PAPMA January 11, 2016October 1, 2018 – June 30, 202117 Page 4 of 24 2016 -– 20172018 - 2021 MEMORANDUM OF AGREEMENT City of Palo Alto and Palo Alto Police Managers' Association ARTICLE I – PREAMBLE This Memorandum of Agreement is pursuant to and subject to Sections 3500-3510 of the Government Code of the State of California, the Charter of the City of Palo Alto, and the City of Palo Alto Merit System Rules and Regulations. This Memorandum of Agreement made and entered into at Palo Alto, California, by and between the City of Palo Alto, a municipal corporation (hereinafter referred to as "City") and the Palo Alto Police Managers' Association (hereinafter referred to as "Association"), is intended to define agreements reached during the meet and confer process concerning wages, hours, working conditions, and other terms and conditions of employment for the represented group of employees. Section 1 – Recognition. On October 29, 2009, the City of Palo Alto certified the Palo Alto Police Managers' Association (Association) as a bargaining unit within the City. The City recognizes the Association as the exclusive representative of an employee group consisting solely of Police Lieutenants and Police Captains who are regularly employed by the City and others who might be amended into the representation unit from time to time under existing law and the Merit System Rules and Regulations. Section 2 – Non-Discrimination. The City and the Union agree that there shall be no discrimination of any kind because of age (over 40), race, creed, color, religion national origin, ancestry), veterans status, physical or mental disability, marital status, sexual orientation, sex (sexual, gender based or gender identity, pregnancy/childbirth), medical condition (cancer related and genetic characteristics), or on any other basis prohibited by applicable federal and State law against any employee or applicant for employment. The Association shall cooperate with the City, to the extent required by federal and State laws and regulations, in furthering the objective of Equal Employment Opportunities, as defined by Federal and State regulations. ARTICLE II – COMPENSATION Section 3 – Salary. Effective the first full pay period after ratification by the Association and adoption by the City Council approval of the Side Letter, the base salary rates and ranges for classifications covered by this bargaining unit shall be increased as set forth in Appendix A-1 to reflect salary increases and market adjustments. If the parties reach agreement on an MOA that is approved by the City Council and ratified by the Union by June 30, 2016, theAdditionally, the base salary rates and ranges for classifications covered by this bargaining unit shall be increased on the first full pay period following June 30July 1, 20196 City of Palo Alto and PAPMA January 11, 2016October 1, 2018 – June 30, 202117 Page 5 of 24 and June 30July 1, 202017 as set forth in Appendix A-1. Actual salary within the range is determined by experience and performance, as determined by the Chief of Police.If an MOA is not approved and ratified by June 30, 2016, salary increases and market adjustments shall be 0% for both June 30, 2016 and June 30, 2017. Section 4 – Working Out of Class Pay. Lieutenants or Captains fulfilling the role of an acting captain, assistant chief, or chief for individual shifts and/or a number of hours within a shift, shall not receive additional compensation. Periodically working in this capacity shall be deemed a basic duty within an employee's job description. Lieutenants and Captains working out of class for a period of one four or more consecutive pay periodsshifts shall be compensated at the start of the second consecutive pay period with premium pay determined by the Chief of Police or his or her designee up to 10% of base pay. In accordance with Government Code 20480, an employee assigned to work in an out-of-class appointment may not exceed 960 hours worked in the appointment within a fiscal year if the employee is appointed to an upgraded position or higher classification that is vacant during recruitment for a permanent appointment. This limitation does not apply to a position that is temporarily available due to a leave of absence. Section 5 – Night Shift Differential. Night shift differential shall be paid at the rate of 5% to all personnel for all hours worked between 6:00 p.m. and 8:00 a.m. ARTICLE III – HEALTH CARE BENEFITS Section 6 – Active Employee Health Plans. The maximum City contribution towards medical premiums for eligible full time employees per employee category shall be up to a maximum of the following for any plan: Medical Premium Category PEMHCA Contribution* Total Maximum City Contribution (inclusive of PEMHCA contribution) effective from time of ratification through December 31, 2018 Total Maximum City Contribution (inclusive of PEMHCA contribution) effective January 1, 2019 Employee Only $133.00 $804 $840 Employee plus one $133.00 $1606 $1680 Employee Family $133.00 $2088 $2180 City of Palo Alto and PAPMA January 11, 2016October 1, 2018 – June 30, 202117 Page 6 of 24 Medical Premium Category PEMHCA contribution* Additional City Contribution 2016 Total maximum City contribution* (effective pay period including January 11, 2016) Total maximum City contribution* (effective pay period including January 1, 2017) Employee only $125.00 $618.00 $743.00 $773.00 Employee + 1 $125.00 $1,360.00 $1,485.00 $1,544.00 Employee + 2 or more $125.00 $1,806.00 $1,931.00 $2,008.00 *Total City contribution includes both PEMHCA minimum contributions pursuant to Government Code section 22892 and an additional City contribution necessary to pay the cost of medical premiums up to the amount listed in the "Total maximum City contribution" columns above. This contribution amount is based on half of the eight percent historical trend. Section 7 – Dental Benefits. a) The City will maintain the present level of benefits on the City-sponsored dental program for current employees and their dependents, except that the maximum benefits per calendar year shall be $2,000 effective in 1988. Dental Coverage shall include composite (tooth colored) fillings for all teeth. Effective July I, 2007, the City will provide 50% of reasonable charges, $2,000 lifetime maximum orthodontic benefit for representation unit employees and their dependents. b) Dependents will include domestic partners, as defined in the Active Employee Domestic Partners Section below. c) During the term of the agreement, the City and the Union will work together to review benefit provisions of the City's self-funded dental program. The purpose of this review is to contain benefit cost increases. Joint recommendations will be prepared for discussion during successor agreement negotiations. d) Dental implants in conjunction with one or more missing natural teeth, and removal of dental implants will be covered as a Major Dental Service at 50% usual, customary and reasonable (UCR). Section 8 – Vision Care. The City will offer vision care coverage for employees and dependents. Coverage is equivalent to $20 deductible Plan A under the Vision Service Plan, with monthly premiums paid by the employer. Dependents will include domestic partners, as defined in the Active Employee Domestic Partners Section below. Section 9 – Basic Life Insurance. The City shall provide a basic group term life insurance with Accidental Death and Dismemberment (AD&D) coverage, in an amount equal to the employee's annual basic pay (rounded to the next highest $1,000) at no-cost to the employee. AD&D pays an additional amount equal to the employee's annual basic pay (rounded to the next highest $1,000). City of Palo Alto and PAPMA January 11, 2016October 1, 2018 – June 30, 202117 Page 7 of 24 Section 10 – Supplemental Life And AD&D Insurance. An employee may, at his/her cost, purchase additional life insurance and additional AD&D coverage equal to one-or two-times his or her annual salary. The maximum amount of life insurance available to the employee is up to $325,000 and the maximum amount of AD&D coverage available is up to $325,000. Section 11 – Effective date of Coverage for New Employees. For newly hired regular employees coverage begins on the first day of the month following date of hire for the health plan, dental plan, vision care plan, and life insurance plans if these benefits are elected. ARTICLE IV – OTHER BENEFITS Section 12 – Holiday Compensation. Police Managers will receive the twelve (12) paid City holidays outlined in the City of Palo Alto Merit Rules. Section 13 – Vacation. a) Vacation Accrual. Vacation will be accrued when an employee is in pay status and will be credited on a bi-weekly basis. Total vacation accrual at any one time may not exceed three times the annual rate of accrual. Each eligible employee shall accrue vacation at the following rate for continuous service performed in pay status: 1. Less than nine (9) years - For employees completing less than nine (9) years continuous service; one hundred twenty (120) hours vacation leave per year. The City Manager may adjust the annual vacation accrual of employees hired on or after July 1, 2001 to provide up to forty (40) additional hours (i.e. to a maximum annual accrual of one hundred sixty (160) hours) for service with a prior employer. 2. Nine (9), but less than fourteen (14) years - For employees completing nine (9), but not more than fourteen (14) years continuous service; one hundred sixty (160) hours vacation leave per year. 3. Fourteen (14), but less than nineteen (19) years - For employees completing fourteen (14), but not more than nineteen (19) years continuous service; one hundred eighty (180) hours vacation leave per year. 4. Nineteen (19) or more years - For employees completing nineteen (19) or more years continuous service; two hundred (200) hours vacation leave per year. b) Vacation Use. Vacation use by police managers will be subject to approval by the Chief of Police or his/her designee. All reasonable efforts will be made to approve vacation requests while maintaining appropriate oversight of public safety operations. City of Palo Alto and PAPMA January 11, 2016October 1, 2018 – June 30, 202117 Page 8 of 24 Employees shall complete six months continuous service before using accrued vacation leave. c) Vacation Cashout. Once each calendar year an employee may cash out eight (8) or more hours of vacation accrual in excess of eighty (80) hours from a minimum of eight (8) hours to a maximum of one hundred ( 120) hours, provided that the employee has taken at least eighty (80) hours of vacation in the previous twelve (12) months. Effective for the 2012 tax year and each subsequent year, employees must pre-elect an irrevocable number of vacation hours they will cash out during the upcoming year, up to a maximum of one hundred twenty (120) hours, prior to the start of the calendar year. Employees who do not pre- designate or elect to cash out hours will be deemed to have waived the right to cash out any vacation leave in the following year. Employees who pre-designate cash out amounts may request a cash out at any time in the designated tax year by submitting a cash out form to payroll. For employees who have not requested payment of pre-designated cash out amounts by November 1 of each year, Payroll will automatically cash out the pre-designated amount in a paycheck issued on or after November 1. d) Vacation Pay at Termination. Employees leaving the municipal service with accrued vacation leave shall be paid the amounts of accrued vacation to the date of termination. Payments for accrued vacation shall be at the employee's current rate of pay. e) Vacation Benefits 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 the employee's estate within thirty days. This proration will be computed at the last basic rate of pay. Section 14 – Long Term Disability. The City shall provide long term disability (LTD) insurance with a benefit of 2/3 monthly salary, up to a maximum benefit of $10,000 per month. The City shall pay the premium for the first $6,000 of base monthly salary. For employees whose base monthly salary exceeds $6,000, the employee shall pay the cost of the required premium based upon their monthly salary between $6,000 and $15,000. Section 15 – Dependent Care Assistance Program. The City will provide a Dependent Care Assistance Program for employees according to the provisions of the Federal Economic Recovery Act of 1981, Code Sections 125 and 129. The program will be available to representation unit employees beginning with pay period number 1 of 1992, and remain in effect subject to a reasonable minimum participation level and availability of third-party administrative services at a reasonable cost. Section 16 – Medical Flexible Spending Program. The City will provide a Medical Flexible Spending Program for Association members allowing them to use pre-tax deferrals for reimbursement of excess or uncovered medical, dental and vision expenses. The plan will follow existing plan guidelines and conform to all applicable laws and regulations. City of Palo Alto and PAPMA January 11, 2016October 1, 2018 – June 30, 202117 Page 9 of 24 Section 17 – Employee Assistance Plan. The Employee Assistance Plan (EAP) provides employees with confidential personal counseling, work and family related issues, eldercare, substance abuse, etc. Section 18 – Commute Incentives and Parking. 1. Civic Center Parking. Employees assigned to Civic Center and adjacent work locations. The City will provide a Civic Center Garage parking permit. Employees hired after June 30, 1994 may initially receive a parking permit for another downtown lot, subject to the availability of space at the Civic Center Garage. 2. Alternative Commute Incentives: Employees who qualify may voluntarily elect one commute incentives, including but not limited to the following options, for those using an eligible commute alternative on 60% or more of their scheduled work days per month: a. Public Transit and Vanpool. The City provides tax-free commute incentives up to the current IRS limit, as may be amended from time to time, (currently $125/month) are available through the Commuter Check Direct (CCD) website for employees using Bay Area public transportation or riding in a registered vanpool at least 60% of their scheduled work days. Administration of the Commuter Check benefit shall be subject to the rules and regulations of the third- party administrator. b. Go Pass. The Go Pass program will offer civic center and other downtown-based employees a Caltrans Go Pass that allows unlimited rides on Caltrain in all zones seven days per week, to any City of Palo Alto employee. c. Bicycle. The City will provide employees with a tax-free incentive of $20 per month to eligible employees who ride a bicycle to work. d. Carpool. The City will provide with a taxable incentive of $30 per month to each eligible employee in a carpool with two or more licensed drivers. e. Walk. The City will provide employees with a taxable incentive of $20 per month to eligible employees who walk to work. Reopener. It is the City's interest to reduce single occupancy vehicle trips to the extent possible in order to address current challenges. During the term of this agreement, upon written request by the City, the parties shall meet and confer through the impasse process if necessary on changes to the City's commute incentive and parking program adopted by the City Council. ARTICLE V –RETIREMENT Section 19 – Retirement Benefits. A. "3%@50" Safety Retirement (Employees hired on or before December 7, 2012) For employees hired by the City of Palo Alto on or before December 7, 2012, the California Public Employees' Retirement System (CalPERS) retirement formula benefit known as the "3 percent at 50 (3%@50)," per California Government Code section 21362.2, shall continue in effect with the final salary determination for such employees of the "single highest one (1) year period" per California Government Code section 20042. All unit members in the 3% @ 50 safety retirement plan shall pay the full 9% CalPERS member contribution. This contribution is pre-tax to the extent allowable by law. City of Palo Alto and PAPMA January 11, 2016October 1, 2018 – June 30, 202117 Page 10 of 24 B. Second Tier "3% at 55" Safety Retirement ("Classic" Employees) For those employees hired on or after December 8, 2012 through December 31, 2012 or are classic members as defined by CalPERS, the CalPERS retirement formula benefit known as the "3 percent at 55 (3%@55)," per Government Code section 21363.1, with the final salary determination for such employees of the "three (3) highest consecutive years" based on the highest average annual compensation earnable by the member during three (3) consecutive years of employment immediately preceding retirement or the three-year period otherwise designated by the member per Government Code section 20037. All unit members in the second tier shall pay the full 9% CalPERS member contribution. This contribution is pre-tax to the extent allowable by law. C. Third Tier "2.7% at 57” Safety Retirement (“New” PEPRA Employees) For those employees hired on or after January 1, 2013, the CalPERS retirement formula benefit known as "2.7 percent at 57 (2.7% at 57)," with the final salary determination for such employees of the "three (3) highest consecutive years." The initial contribution rate will be at least 50% of the normal cost rate at retirement as determined by CalPERS. This contribution is pre-tax to the extent allowable by law. D. Additional Employee PERS Contributions Effective as soon as administratively possible all employees regardless of pension formula in this unit shall, in addition to the Member Contribution required per CalPERS 20516 contract amendment, pay an additional 1 % towards the Employer share of Pension. Effective the pay period that includes June 30, 2016, all employees regardless of pension formula in this unit shall, in addition to the Member Contribution required, pay an additional I% towards the Employer share of Pension for a total of 2%. Effective the pay period that includes June 30, 2017, all employees regardless of pension formula in this unit shall, in addition to the Member Contribution required, pay an additional 3I% towards the Employer share of Pension for a total of 3%. Effective the pay period that includes June 30, 2021, all employees regardless of pension formula in this unit shall, in addition to the Member Contribution required, pay an additional 1% towards the Employer share of Pension for a total of 4%. Such contributions under CalPERS 20516 will be provided on a pre-tax basis to the extent allowable by law. Section 20 – Retirement Medical Plan. A. Retiree Medical Coverage for Unit Employees Hired Before January 1, 2004: Monthly City-paid premium contributions for a retiree-selected PEMHCA optional plan will be made in accordance with the Public Employees' Medical and Hospital Care Act Resolution for employees hired before January 1, 2004 as outlined below. For employees who retire before June 1, 2012, the City will pay up to the monthly medical premium for the 2nd most expensive plan offered to PMA employees among the existing array of plans. For employees who retire on or after June 1, 2012, The City contribution towards retiree medical shall be the same contribution amount it makes for active City employees. City of Palo Alto and PAPMA January 11, 2016October 1, 2018 – June 30, 202117 Page 11 of 24 Effective upon ratification and adoption of this Agreement (Scheduled for January 11, 2016), the City shall provide active unit employees who were hired before January 1, 2004 with a one-time opportunity to opt-in to retiree health benefits provided under California Government Code section 22893. Eligible employees who wish to exercise this option shall inform the People, Strategy, and Operations department of their election in writing no later than 90 days following the ratification and adoption of this Agreement. B. 20-Year Vesting Schedule for Retiree Medical Coverage for Unit Employees Hired on or After January 1, 2004 and employees who chose to opt-in to retiree health benefits provided under California Government Code section 22893 as outlined above: The retiree health benefit provided in California Government Code section 22893 shall apply to all employees hired on or after January I, 2004 and employees who opt-in as outlined above. Under this law, an employee is eligible to receive Fifty (50) percent of benefit after ten (10) years; each additional service credit year after Ten (10) years will increase employer credit by Five (5%) percent until Twenty (20) years is reached at which time employee is eligible for One Hundred (100%) percent of annuitant-only coverage and Ninety (90%) percent of the additional premium for dependents. Section 21 – ICMA - Retirement Health Savings Plan. The City provides an ICMA retirement health savings plan for Association members. The ICMA retirement health savings plan is subject to applicable IRS rules and plan guidelines as well as any other applicable laws. Each Association member shall make a pre-tax contribution to the plan as follows: 1. Each member shall contribute 1% of their base salary bi-weekly into the plan. 2. Each member within 5 years of the minimum retirement age 50 shall contribute an additional I% of their base salary bi-weekly into the plan. 3. Upon retirement from the city, each member shall contribute the then cash value of 100 hours of vacation into the plan. 4.2. Failure by each member to contribute will deem the health savings plan out of compliance with IRS and plan guidelines. 5.3. The administrative fee shall be paid by the Association member. The manner and amount of contributions may be periodically modified by agreement of both parties. Section 22 – Deferred Compensation Program. The City will provide a Deferred Compensation Program for employees according to the provisions of the plans and applicable IRS guidelines. ARTICLE VI – MANAGEMENT BENEFIT PROGRAM Section 23 – Professional Development Reimbursement. The purpose of this program is to provide employees with resources to improve and supplement their job and professional skills. Reimbursement for authorized self-improvement activities may be granted to each Association employee up to a maximum of five hundred dollars ($500) per fiscal year. A departmental training fund of one thousand dollars per employee ($1,000) will be established for subject matter, City of Palo Alto and PAPMA January 11, 2016October 1, 2018 – June 30, 202117 Page 12 of 24 leadership or other training that the Department Director identifies as a need for employees within that Department. The following items are eligible for reimbursement: a) Civic and professional association memberships b) Conference participation and travel expenses, which must occur within the compensation plan period. c) Educational programs, books and videos, and tuition reimbursement designed to maintain or improve the employee's skills in performing his or her job or future job opportunities, should support the City's mission or be necessary to meet the educational requirements for qualification for employment. Permissible educational expenses are refresher courses, courses dealing with current developments, academic or vocational courses, as well as the travel expenses associated with the courses as defined by the City's travel expense report from the Policy & Procedures Manual Section 1-02 ASD. d) Professional and trade journal subscriptions not to exceed 12 months. Approval will be at discretion of department head and signature is required on reimbursement form. Amounts under this professional development program will be pro-rated in the first year of employment or promotion. Section 24 – Physical Examinations. All management and professional employees are eligible to receive an annual physical examination as follows: a) Use the periodic health exam benefit as provided under the PERS Health Plan option you have selected. Each of the PERS Health Plans provides for a periodic physical examination. The examination must be performed by your primary care physician – unless he/she refers you to another physician. b) The types of tests and the frequency of the tests cannot exceed AMA guidelines. The guidelines are a suggested minimum based on research studies concerning preventative care. The judgment of your physician is the final determinant for your care. c) Any additional necessary asymptomatic tests that are required by your physician that are not covered by your health plan will be reimbursed by the City. Any symptomatic tests will be covered under your PERS Health Plan. The Reimbursement for Periodic Physical Exam Form is available on the Human Resources Intranet site. This benefit will not be pro-rated. Section 25 – Excess Benefit. This benefit is designed to meet the requirements of Section 125 of the Internal Revenue Code. Every calendar year, each employee will be provided with $2,500 annually that they can designate among the following options: a) Medical Flexible Spending Account (Medical FSA). Provides reimbursement for excess medical/dental/vision, or expenses that are incurred by employees and their dependents which are not covered or reimbursed by any other source, City of Palo Alto and PAPMA January 11, 2016October 1, 2018 – June 30, 202117 Page 13 of 24 including existing City-sponsored plans. This includes prescribed medications and co-payments as well as over-the-counter drugs, including: antacids, allergy medicines, pain relievers and cold medicines. However, nonprescription dietary supplements (e.g. vitamins, etc.) toiletries (e.g. toothpaste), cosmetics (e.g. face cream), and items used for cosmetic purposes (e.g. Rogaine) are not acceptable. b) Dependent Care Flexible Spending Account (Dependent Care FSA). Provides reimbursement for qualified dependent care expenses under the City's Dependent Care Assistance Program (DCAP), subject to the following limits: Dependent care expenses will be reimbursed only to the extent that the amount of such expenses reimbursed under this Management Benefit Program, when added to the amount (if any) of annual dependent care expenses that the participant has elected under the City's Flexible Benefits Plan, do not exceed the maximum permitted under the DCAP. 1) The annual amount submitted for reimbursement cannot exceed the income of the lower-paid spouse. 2) The expenses must be employment-related expenses for the care of one or more dependents who are under 13 years of age and entitled to a dependent deduction under Internal Revenue Code section 151 (e) or a dependent who is physically or mentally incapable of caring for himself or herself. 3) The payments cannot be made to a child under 19 years of age or to a person claimed as a dependent. 4) If the services are provided by a dependent care center, the center must comply with all state and local laws and must provide care for more than six individuals (other than a resident of the facility). 5) Dependent care expenses not submitted under this section are eligible under the City Dependent Care Assistance Plan (DCAP). However, the maximum amount reimbursed under DCAP will be reduced by any amount reimbursed under the Excess Benefit Plan. c) Non-taxable Professional Development Spending Account. Provides reimbursement for Non-Taxable professional development expenses (e.g., job-related training and education, seminars, training manuals, etc.) to the extent they are not paid or reimbursed under any other plan of the City. d) Gym or Health Club Memberships. Provides reimbursement for annual or monthly memberships, including personal trainers. Reimbursement of this expense is taxable to the employee. e) Deferred Compensation. The $2,500 excess benefit provided in this section made on a one-time contribution basis on election by the employee towards the employee's City-sponsored 457 Deferred Compensation plan with either ICMA-RC or the Hartford. Amounts designated by employees to either the Medical FSA, Dependent Care FSA, or Professional Development options are done so on a "use -it-or-lose-it" basis. This means that any amounts City of Palo Alto and PAPMA January 11, 2016October 1, 2018 – June 30, 202117 Page 14 of 24 designated and not used by the end of the calendar year ( or end of the extended grace period for the medical FSA) will be forfeited by the employee and returned to the plan. Specified amounts under this benefit will be applied on a pro-rata basis for employees who are part- time or who are in a management or professional pay status for less than the full fiscal year. Such benefits will be pro-rated in the first year of employment (based on hire date) but will not be pro- rated upon separation of employment. Section 26 – Management Annual Leave. At the beginning of each calendar year regular management employees will be credited with 80 hours of management annual leave. This leave is granted in recognition of the extra hours management employees work over their regular schedule. This leave may be taken as paid time off, added to vacation accrual (subject to vacation accrual limitations), taken as cash or taken as deferred compensation. When time off is taken under this provision, I 0-hour shift workers will receive one shift off for each 8 hours charged; 24-hour shift workers will receive one-half shift off for each 8 hours charged. Entitlement under this provision will be reduced on a prorated basis for part-time status, or according to the number of months in paid status during the fiscal year; employees who have used more than the pro-rated share at the time they leave City service shall be required to repay the balance or have it deducted from their final check. Unused balances as of the end of the calendar year will be paid in cash unless a different option as indicated above is elected by the employee. ARTICLE VII – OPERATIONAL ISSUES Section 27 – Management Assignments. The Chief of Police or his/her designee shall have the authority to make management assignments at his or her discretion. Where possible, these assignments should take into account the needs of the organization, development of the employee and individual employee desires. Section 28 – Basic Work Schedules. Generally, police managers will be expected to work flexible schedules and reasonably adjust their hours to oversee their employee groups, manage 24/7 law enforcement operations, perform routine work, complete daily assignments, and occasionally attend meetings or other events outside their normal work shifts. Basic work schedules will be the 4/10 schedule. Section 29 – On Duty Workouts. Police managers who complete the yearly Wellness Program requirements may participate in an on-duty workout for a reasonable period as determined by the Chief, as long as it does not interfere with the performance of the employee's job duties, for which the employee will remain accountable. Applicable guidelines and conditions are outlined in the Department's Wellness Program Policy which the City may change from time to time. Section 30 – Take Home Emergency Response Vehicles. Subject to approval by the City Manager and the Police Chief, Police Captains will continue the current take home emergency response vehicle program which allows for the immediate and emergent response to public safety incidents involving the City. City of Palo Alto and PAPMA January 11, 2016October 1, 2018 – June 30, 202117 Page 15 of 24 The specific use and restrictions for driving these vehicles shall adhere to the guidelines outlined in the then current version of City Policy and Procedure 4-01. Section 31 – Modified Duty Assignments. In cases of non-work-related injury, illness or pregnancy, an employee, upon approval of the department head, City Risk Manager and the employee's doctor, may return to work or continue work with doctor-approved limited or alternative duty pursuant to Policy & Procedure 2-04. Approval for reasonable accommodation such as limited/alternative duty shall be based upon department ability to provide work consistent with medical limitations and the length of time of the limitations. The City doctor may be consulted in determining work limitations. Any assignment to a limited/alternative duty will be on a temporary basis. Section 32 – Meal Allowance. Police managers attending night meetings will be eligible for meal re- imbursement under the guidelines set forth in the then current version of City Policy and Procedure No. 1-02. Section 33 – Uniforms. a) The City will supply complete uniforms to all sworn personnel. All uniform items are the property of the City. One complete uniform consists of: (I) three pair of trousers, (2) three short-sleeved shirts with patches and zippers if desired, (3) three long-sleeved shirts with patches and zippers if desired, (4) three cotton or two synthetic fiber turtleneck shirts, (5) hat, (6) duty jacket with patches, (7) dress jacket with patches, (8) necktie, and (9) rain gear. b) At the time of initial employment, every sworn employee will be issued one complete uniform. Uniform items will be replaced on an as-needed basis subject to verification by management. c) The City shall provide uniform cleaning for sworn representation unit personnel. d) Personnel are accountable for all uniform items issued to them. If a particular item is lost or damaged due to employee negligence, the employee will be required to reimburse the City for value of the item(s) lost or damaged. e) The City shall reimburse employees for the full cost of job-related boots upon verification of such purchase by the employees. The City will make the reimbursement only upon proof that the previous boots have become unserviceable due to wear or damage. (Job-related boots shall mean well-constructed, high topped boots that provide full ankle and foot support, which are selected from list agreed to by Management and the Association.) Employees are responsible for the full cost of any low-top, black shoes that are worn with the uniform. ARTICLE VIII – ASSOCIATION AGREEMENTS Section 34 – Association Security. a) When a person is hired in any of the covered job classifications, the City shall notify that person that the Association is the recognized bargaining representative for the employee in said Unit and give the employee a current copy of the Memorandum of Agreement. City of Palo Alto and PAPMA January 11, 2016October 1, 2018 – June 30, 202117 Page 16 of 24 b) If there is no disruption of work, members of the Association Board of Directors may use a reasonable amount of on-duty time without loss of pay to meet with Management specifically related to representation of employees. Such release time must be cleared in advance by the Chief (or his/her Designee) who is a member of management. For purposes of this section, representation shall include: (i) Meetings with represented employees or management related to a grievance or disciplinary action, including investigation and preparation time. (ii) A meeting with management related to benefits, working conditions or other terms and conditions of employment. Section 35 – Association Representative Access to Work Locations. Employee and non-employee representatives of the Association will be granted access to City work locations to conduct business related to the administration or negotiation of the parties' Memorandum of Understanding, as long as advance arrangements for such visits have been made with the affected department manager and no disruption of work occurs. Advance arrangement shall normally include not less than one hour's notice in the case of an employee Association representative, two hours in the case of non- employee Association representatives. Non-employee representatives must also notify the Human Resources Department Manager (or designee) of the time, date and location of the representative's intended visit. Section 36 – Release Time. The Association President or his or her-designee in the representation unit may use a reasonable amount of time without loss of pay for matters related to the bargaining process, labor relations, and administration of the MOA, violations of the MOA, grievances, disciplinary issues, and training for association members. Release time shall normally be approved in advance by the department head and must not detract from the performance of the representative's City job duties, for which he or she will remain accountable. Section 37 – Use of City Facilities for Association Business. Any use of City facilities shall be governed by the then current version of City Policy and Procedure No. 4-07. Section 38 – Payroll Deduction. The City shall deduct Association membership dues and any other mutually agreed upon payroll deduction from the bi-weekly pay of member employees. The dues deduction must be authorized in writing by the employee on an authorization card acceptable to the City and the Association. The City shall remit the deducted dues to the Association as soon as possible after deduction. ARTICLE IX – LEAVE PROGRAMS Section 39 – Sick Leave. a) Statement of Policy. Sick leave shall be allowed and used only in case of actual personal sickness or disability, medical or dental treatment, or as authorized in Subsection (i), personal business chargeable to sick leave. Up City of Palo Alto and PAPMA January 11, 2016October 1, 2018 – June 30, 202117 Page 17 of 24 to 8 days sick leave per year may be used for illness in the immediate family (spouse, child, parent, parent-in-law, brother, sister, registered domestic partner, or close relative residing in the household of the employee). b) Eligibility. Regular and part-time employees shall be eligible to accrue and use sick leave. c) Accrual. Sick leave shall be accrued bi-weekly provided the employee has been in a pay status for 50 percent or more of a bi-weekly pay period. Sick leave shall be accrued at the rate of 3.7 hours per bi-weekly pay period. d) Accumulation. Sick leave accrual accumulation shall be limited to 1,000 hours with no payoff provision for unused balance at termination. e) Use. Sick leave may be used as needed and approved, to the point of depletion, at which time the employee will no longer receive pay for sick leave. A new employee may, if necessary, use up to forty-eight hours or shift equivalent of sick leave at any time during the first six months of employment. Any negative balances generated by such utilization will be charged against future accrual or deducted from final paycheck in the event of termination. 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 his/her option, choose either to receive the long-term disability benefits or to utilize the remainder of his/her accrued sick leave prior to applying for long-term disability benefits. Sick leave will not be granted for illness occurring during any leave of absence other than sick leave, unless the employee can demonstrate that it was necessary to come under the care of a doctor while on such other leave of absence. When an employee finds it necessary to be absent for any reason, he/she should contact the Department as soon as possible, but no later than the start of the scheduled shift on the first working day of absence, and shall regularly report by the start of each subsequent shift unless hospitalized. Such reports may be subject to written documentation if there is reasonable evidence that sick leave abuse has occurred. Sick leave shall not be granted unless such report or advance accounting has been made, provided, however, that the department head may grant exception to this policy where the circumstances warrant. Documentation may also be required if there is a reasonable basis to believe that the employee may not be medically fit to return to work. f) Depletion of Sick Leave Benefits. Upon depletion of sick leave or the beginning of the period to be covered by payments under the long-term disability group insurance coverage, whichever comes first, an employee may be granted City of Palo Alto and PAPMA January 11, 2016October 1, 2018 – June 30, 202117 Page 18 of 24 a medical leave of absence without pay for a period not exceeding sixty days. If the employee is unable to return to work at the end of this period, he/she must request further medical leave which will be subject to the approval of the City Manager. If further leave is granted, the employee must notify the City of intent to return to work every thirty days. If further leave is not granted, the employee's service with the City shall be considered terminated. g) Forfeiture Upon Termination. Employees leaving the municipal service shall forfeit all accumulated sick leave, except as otherwise provided by law. In the event that notice of resignation is given, sick leave may be used only through the day which was designated as the final day of work by such notice. h) Personal Business Leave Chargeable to Sick Leave. Employees may use up to twenty (20) hours of sick leave per calendar year for personal business. The scheduling of such leave is subject to the approval of the appropriate level of management. Section 40 – Voluntary Catastrophic Leave Program. If permitted by agreement between the City and the Palo Alto Police Officers' Association (P.O.A.) members of the Palo Alto Police Managers' Association representation unit may participate in the "Voluntary Leave Program" applicable to the P.O.A. representation unit to assist in maintaining the pay of an employee who is eligible by virtue of a qualifying catastrophic medical condition. Such participation, when authorized by City- P.O.A. agreement, shall be allowed only as long as the donors remain anonymous (unless disclosure is required by law). Otherwise, said program shall be governed by the conditions and restrictions set forth in the City-P.O.A. Memorandum of Agreement. Section 41 – Leave of Absence With Pay. The City Manager may grant a regular employee under his/her control a leave of absence with pay for a period not exceeding thirty calendar days for reasons he/she deems adequate and in the best interest of the City. The City Council may grant a regular employee a leave of absence with pay for a period not to exceed one year for reasons the Council considers adequate and in the best interest of the City. a) Subpoenas: leave of absence. Regular employees who are subpoenaed in their capacity as a City employee to appear as witnesses on behalf of the State of California or any of its agencies may be granted leaves of absence with pay from their assigned duties until released. The employee shall remit all fees received for such appearances to the City within thirty days from the termination of his or her services as a witness. Compensation for mileage or subsistence allowance shall not be considered as a fee and shall be retained by the employee. b) Employee's time off to vote. Pursuant to Elections Code section 14000, when the employee is unable to vote outside of the employee's work hours, up to two (2) hours' time off with pay to vote at any general or direct primary election shall be granted at the beginning or end of the employee's scheduled shift, whichever allows the most free time for voting and the least time off from the regular working shift. Such time off with pay to vote shall only be granted if the employee provides at least two working City of Palo Alto and PAPMA January 11, 2016October 1, 2018 – June 30, 202117 Page 19 of 24 days' notice that time off for voting is desired, unless the nature of the employee's schedule prevents the employee from anticipating the need for time off to vote. c) Leave of absence; death in family. Leave of absence with pay of three (3) days shall be granted an employee by the head of his or her department in the event of death in the employee's family, but shall not exceed a total of six (6) paid work days per calendar year. For purposes of this section, family is defined as wife, husband, son, step-son, son-in-law, daughter, step-daughter, daughter-in-law, father, step-father, father-in- law, mother, step-mother, mother-in-law, brother, step-brother, brother-in-law, sister, step-sister, sister-in-law, grandmother, grandmother-in-law, 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. Requests for leave in excess of three (3) days shall be subject to the approval of the City Manager. Approval of additional leave will be based on the circumstances of each request with consideration given to the employee's need for additional time off. d) Jury duty: leave of absence. Employees required to report for jury duty 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 for such duties other than mileage or subsistence allowances within thirty days from the termination of his/her jury service. Section 42 – Leave of Absence Without Pay. 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) Other leaves. Leaves of absence without pay is at the discretion and approval of management. Unauthorized leave of absence/job abandonment may result in disciplinary action up to and including termination of employment. During unpaid leaves of absence for disability or other reasons, the employee may elect and the City may require the employee to use accrued paid vacation and sick leave in a manner consistent with state and federal law. All leaves without pay must be approved in advance and in writing by the department to be effective. c) Approval of department head. Leave of absence without pay for one week or less may be granted by the department head, depending on the merit of the individual case. d) Approval by City Manager. City of Palo Alto and PAPMA January 11, 2016October 1, 2018 – June 30, 202117 Page 20 of 24 Leave of absence without pay in excess of one week's duration may be granted by the City Manager on the merit of the case, but such leave shall not exceed twelve months' duration. e) Absence without leave. Unauthorized leave of absence shall be considered to be without pay, and reductions in the employee's pay shall be made accordingly. Unauthorized leave of absence may result in termination of employment. f) Leave of absence; death outside the immediate family. Leave without pay may be granted a regular employee by his/her department head in the event of death to family members other than one of the immediate family, such leave to be granted in accordance with Subsections (b), (c), (d) and (e). g) Military leave of absence. State and federal law shall govern the granting of military leaves of absence and the rights of employees returning from such absence. ARTICLE X – EMPLOYEE/EMPLOYER RELATIONS Section 43 – Probationary Period. a) All original appointments to full-time or part-time regular municipal service positions shall be tentative and subject to a probationary period of twelve months for management employees b) The probationary period shall be regarded as part of the testing process and shall be utilized for closely observing the employees work, for securing the effective adjustment of a new employee to his/her position, and for rejecting any probationary employee whose performance does not meet the acceptable standards of work. c) A report of performance of each probationary employee shall be made by the department head and shown to the probationary employee on or before expiration of the probationary period. d) During the probationary period a new employee may be suspended, demoted or terminated at any time by the appointing authority without cause and without right of appeal or to submit a grievance. Section 44 – Disciplinary Action and Unsatisfactory Work or Conduct. Disciplinary action shall be governed by the City’s Merit Rules and Regulation, Palo Alto Police Department Policy 340 on Conduct, the Palo Alto Police Department Internal Affairs and Complaint Investigations Guidelines, and the Police Officer Procedural Bill of Rights Act. Section 45 – Grievance Procedure. a) The City and the Association recognize that early settlement of grievances is essential to sound employee-employer relations. The parties seek to establish a mutually satisfactory method for the settlement of employee grievances, or Association grievances, as provided for below. In presenting a grievance, the aggrieved and/or his or her representative is assured freedom from restraint, interference, coercion, discrimination or reprisal. b) Definition. A Grievance is: City of Palo Alto and PAPMA January 11, 2016October 1, 2018 – June 30, 202117 Page 21 of 24 1. An unresolved complaint or dispute regarding the application or interpretation of this Memorandum of Agreement 2. An appeal from a disciplinary action of any kind against an employee covered by this Memorandum of Agreement. c) Access to the Grievance Procedure. Except as otherwise provided in the Memorandum of Agreement for probationary employees, all employees represented by the Association may file and process a grievance. Such aggrieved employees may be represented by the Association or may represent themselves in preparing and presenting their grievance at any level of review. The Association may file a grievance when an Association right under this Memorandum of Agreement not directly related to an individual employee becomes subject to dispute. d) Conduct of Grievance Procedure. 1. The time limits specified in this Article may be extended by written mutual agreement of the aggrieved employee or the Association and the reviewer concerned. 2. If a decision is not rendered within a stipulated time limit, the aggrieved employee may immediately appeal to the next step. 3. The grievance will be considered settled if the decision at any step is not appealed within the specified time limit. 4. The aggrieved employee or the Association and Human Resources Director may mutually agree in writing to waive any step of the grievance procedure. 5. Written grievances shall be submitted on forms provided by the City or on forms that are mutually agreeable to the City and the Association. 6. Any retroactive monetary arbitrator award or settlement by mutual agreement shall not extend more than ninety (90) days before the date that the grievance was filed in writing at Step 2 below. The following steps shall apply: Step I. The aggrieved employee will first attempt to resolve the grievance through informal discussions with his or her immediate supervisor by the end of the tenth working day following the discovery of or the incident upon which the grievance is based. Every attempt will be made to settle the issue at this level. (Note: For purposes of time limits, the working days are considered to be Monday through Friday, exclusive of City holidays.) Appeals of disciplinary action should be processed through the procedures outlined in Step 2-3 of the Grievance Procedure. Step II. If the grievance is not resolved through the informal discussion, the employee will reduce the grievance to writing and submit copies to the department head or his/her designee within ten (10) working days of the discussion with the immediate supervisor. The department head or his/her designee shall have ten (10) working days from the receipt of a written grievance to review the matter and prepare a written statement. City of Palo Alto and PAPMA January 11, 2016October 1, 2018 – June 30, 202117 Page 22 of 24 Step III. If the grievance is not resolved at Step II, the aggrieved employee may choose between final and binding resolution of the grievance through appeal to the City Manager or through appeal to final and binding grievance arbitration. For the term of this Memorandum of Agreement, appeals to final and binding arbitration may be processed only with Association approval. All Step III appeals must be filed in writing at the Human Resources Department Office within ten (10) working days of receipt of the Step II appeal. If the aggrieved employee 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. The City Manager shall render a written decision to all parties directly involved within ten working days after receiving the employee's appeal. If the aggrieved employee elects final and binding arbitration in accordance with this provision, the parties shall mutually select an arbitrator. 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 appealed to the arbitrator. The arbitrator shall be without power to make any decision: 1) Regarding matters of interest. 2) Contrary to, or inconsistent with or modifying in any way, the terms of this Memorandum of Agreement. 3) Granting any wage increases or decreases. 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. If 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 this section and without regard to the merits of the grievance. 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 arbitrator's decision shall be submitted to the City, the aggrieved employee and the Association. All direct costs emanating from the arbitration procedure shall be shared equally by the City and the aggrieved employee or the Association. City of Palo Alto and PAPMA January 11, 2016October 1, 2018 – June 30, 202117 Page 23 of 24 Section 46 – No Strikes. The Association, its representatives, or members, shall not engage in or cause, instigate, encourage, sanction, or condone a strike, withholding of services, concerted abuse of leave of absence provisions, work stoppage or work slowdown of any kind. No employee shall refuse to cross any picket line in the conduct of Police Department business, nor shall the Association, its representatives, or members discriminate in any way toward anyone who refuses to participate in a strike, or any of the job actions cited above. Section 47 – Reduction in Workforce. In the event of reductions in force, they shall be accomplished wherever possible through attrition. If the work force is reduced in the Association, the City will give an employee impacted by a potential lay off 30 days' notice prior to any reduction in force. ARTICLE XI – LOOKING FORWARD Section 48 – Full Understanding. This Memorandum of Agreement contains the full and entire understanding of the parties regarding the matters set forth herein. The parties agree that they shall each carry out their responsibilities under the MOA in good faith. Section 49 – Legal Compliance/Severability. If any provision herein contained is rendered or declared invalid by reason of existing State or Federal legislation or by reason of State Supreme Court or U. S. Supreme Court ruling, such invalidation of such part or portion of this Memorandum of Agreement shall not invalidate the remaining portions hereof, and they shall remain in full force and effect, insofar as such remaining portions are severable. Section 50 – Duration. The term of this Agreement shall commence on January 11October 1, 20186 and shall expire on June 30, 202117. FOR: FOR: Palo Alto Police Management Association City of Palo Alto Ron WatsonJames Reifschneider, Lieutenant James Keene, City Manager April Wagner, Lieutenant Rumi Portillo, Human Resources Director Andrew Binder, Captain Robert Jonsen, Police Chief Dennis Burns, Police Chief Nicholas Raisch, Manager of Employee and Labor Relation Natalie Korthamar, Manager of Employee and Labor Relation City of Palo Alto and PAPMA January 11, 2016October 1, 2018 – June 30, 202117 Page 24 of 24 APPENDIX A-1 Effective the first full pay period following adoption (4% Increase - LT and 1% Increase - CPT) Job Code FLSA Classification Title Grade Code Min Hourly Rate Mid Hourly Rate Max Hourly Rate Approx Mid-Point Monthly Salary Approx Mid-Point Annual Salary 147 Exempt Police Captain-Adv 023 74.15$ 92.68$ 111.22$ 16,065.00$ 192,774.00$ 149 Exempt Police Liet-Adv 086 66.24$ 82.80$ 99.36$ 14,352.00$ 172,224.00$ Effecitve the first full pay period following July 1, 2019 - 4% Increase Job Code FLSA Classification Title Grade Code Min Hourly Rate Mid Hourly Rate Max Hourly Rate Approx Mid-Point Monthly Salary Approx Mid-Point Annual Salary 147 Exempt Police Captain-Adv 023 77.12$ 96.39$ 115.67$ 16,708.00$ 200,491.00$ 149 Exempt Police Liet-Adv 086 68.90$ 86.12$ 103.35$ 14,928.00$ 179,130.00$ Effective the first full pay period following July 1, 2020 - 4% Increase Job Code FLSA Classification Title Grade Code Min Hourly Rate Mid Hourly Rate Max Hourly Rate Approx Mid-Point Monthly Salary Approx Mid-Point Annual Salary 147 Exempt Police Captain-Adv 023 80.20$ 100.25$ 120.30$ 17,377.00$ 208,520.00$ 149 Exempt Police Liet-Adv 086 71.66$ 89.57$ 107.49$ 15,526.00$ 186,306.00$ City of Palo Alto Police Management Association Salary Schedule Tori Anthony, Senior HR Administrator Frank Lee, Senior HR Administrator