HomeMy WebLinkAboutStaff Report 8337
City of Palo Alto (ID # 8337)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 8/14/2017
City of Palo Alto Page 1
Summary Title: PAPMA Contract Extension
Title: Approval of a Side Letter of Agreement Between the City of Palo Alto
and the Palo Alto Police Managers' Association (PMA)
From: City Manager
Lead Department: Human Resources
Recommendation
Staff recommends that the City Council approve and authorize the City Manager to sign the
attached Side Letter Agreement setting certain wages, benefits, and terms and conditions of
employment for employees represented by the Palo Alto Police Managers’ Association.
Unit Background
The Palo Alto Police Managers Association (“PAPMA”) was recognized by the City as a
bargaining unit in October of 2009. It was recognized to represent all fulltime regularly
employed Police Lieutenants and Police Captains. PAPMA currently covers 7 City Employees; 5
Lieutenants and 2 captains.
Current contract
The term of the current Memorandum of Agreement (“MOA”) between the City and PAPMA is
from January 11, 2016 to June 30, 2017 and included some of the following:
Compensation: Upon ratification of the former MOA, the Captain and Lieutenant classifications
received a 2.5% general salary increase as well as a 3% market/equity adjustment. On June 30,
2016 and June 30 2017, the Captain and Lieutenant classifications received an additional 2.5%
general salary increase as well as a 0.5% market/equity adjustment.
Active Health Benefits: In 2014, the City moved to health premium contributions based on fixed
dollar amounts rather than percentage contributions for employees in the SEIU and
Management/ Professional units. Under the former MOA, the City’s contributions for PAPMA
were converted to fixed dollar contributions and will continue under the recommended Side
Letter Agreement.
City of Palo Alto Page 2
Retirement Contributions: Currently, all unit members pay the full 9% PERS Member
contribution. The parties have agreed to modify the Member Contribution by increasing the
contribution to the Employer share of Pension by 3% over the term of the agreement which is
currently in the process of being implemented.
Discussion
In July of 2016 Council directed staff to begin investigating the possibility of extending the
current PAPMA contract. The Council authorized the City team to pursue an extension
agreement with terms similar to those within the 3rd year of the Palo Alto Peace Officers
(PAPOA) which PAPMA was receptive to exploring. This authority included up to 2.5% in salary
increases based on a survey of the regional market, and any other housekeeping or
maintenance items required for an additional year.
The terms of the recommended Side Letter Agreement include the following provisions, would
extend the contract to June 30, 2018 and align the contract term with the PAPOA contract:
1) Increase base wages up to 2.5% based on a market survey; and
2) Align medical reimbursement with Citywide flat rates for 2018.
Policy Implications
Approval of the recommended Side Letter Agreement and adoption of the associated
resolutions is consistent with the Council’s policy direction.
Resource Impact
The 12-month costs associated with this extension is estimated at $58,000 comprised of salary
and variable benefit costs of approximately $51,000 and flat rate medical, vision, and dental
healthcare costs of approximately $7,000. These figures assume the implementation of the
employee contribution to the CalPERS Employer Contribution at a 3 percent rate. It is
anticipated that the Police Department will absorb these additional costs in FY 2018 and
ongoing implications will be factored into the development of the annual budget in subsequent
years.
Environmental Review
Approval of the Side Letter Agreement and adoption of the associated resolutions are not
projects for purposes of the California Environmental Quality Act and therefore no
environmental review is required.
Attachments:
Attachment A: Executed Side letter extension agreement