HomeMy WebLinkAboutStaff Report 6487
City of Palo Alto (ID # 6487)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 1/11/2016
City of Palo Alto Page 1
Summary Title: Resolution Approving Terms for PAPMA
Title: Adoption of Resolutions Approving Terms of Agreement With the Palo
Alto Police Managers' Association and Amending the Merit System Rules and
Regulations to add Chapter 19 (PMA Agreement)
From: City Manager
Lead Department: Human Resources
Recommendation
Staff recommends that the City Council:
(1) Approve and authorize the City Manager to sign the attached Letter Agreement setting
certain wages, benefits, and terms and conditions of employment for employees
represented by the Palo Alto Police Managers’ Association (PAPMA); and,
(2) Adopt the attached resolution adding Chapter 19 to the Merit System Rules and
Regulations incorporating collectively bargained agreements for PAPMA into the City’s
Merit Rules and Regulations
At the time of this writing, the Letter Agreement is pending ratification by PAPMA membership;
staff will remove this item from the Council’s agenda in the event the Letter Agreement is not
ratified prior to the Council meeting.
Background
The Palo Alto Police Lieutenants and Captains separated from the unrepresented Management/
Professional Unit and formed their own bargaining unit (PAPMA) in late 2009. The unit consists
of 7 Full Time Equivalent employees. The City began bargaining with PAPMA in early 2010 to
create an initial Memorandum of Agreement (MOA) and to negotiate concessions to pay and
benefits consistent with other managers at the City. The parties did not reach agreement and
the City declared impasse in May 2012. The City implemented six terms modifying benefits for
PAPMA employees in July 2012. (CMR #3034).
In early May 2013, the parties re-commenced bargaining on an initial MOA. The parties
reached agreement on several additional employee concessions and changes to pay consistent
with changes made in the Management/Professional unit, but were unable to reach agreement
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on all terms. In June 2013, the parties agreed to implement a limited number of tentative
agreements immediately via letter agreement, while continuing negotiations towards an overall
MOA. (CMR #3902).
In the absence of a Memorandum of Agreement formalizing all pay, benefits and working
conditions, the City is generally obligated to maintain the status quo represented by the
Management and Professional Compensation Plan effective in 2009, except as modified by the
parties’ agreement and/or those terms imposed by the City Council following a declaration of
impasse.
Discussion
Following the City Council’s approval of the June 2013 letter agreement, the parties have
continued to meet occasionally to work towards a full MOA. Recently, the parties reached
agreement on several key proposals, including salary, health benefits, retirement benefits, and
retiree health benefits, to be implemented through June 30, 2017. The parties have reduced
these agreements to writing in the attached Letter Agreement (Attachment A), which is now
before the Council for approval.
A. Salary
The parties have also agreed to modify the Captain and Lieutenant pay ranges consistent with
the changes being proposed for the Palo Alto Police Offices’ Association. The movement of pay
ranges will result in an increase to the current pay of PAPMA members. Upon ratification, the
Captain and Lieutenant classifications will receive 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 will receive an additional 2.5% general salary increase as well as a 0.5%
market/equity adjustment. In the event the parties are unable to reach agreement and
approve/ratify an MOA by June 30, 2016, the terms of the Letter Agreement will remain in
effect, but salary and market adjustments for the pay periods including June 30, 2016 and June
30, 2017 will be converted to 0% (zero percent).
B. Retirement
Currently, all unit members pay the full 9% California Public Employees Retirement System
(CalPERS) Member Pension Contribution. The parties have agreed to modify the Member
Pension Contribution by increasing their contribution towards the Employer share of Pension in
accordance with California Government Code Section 20516 (Employees Sharing Additional
Cost). Upon ratification and as soon as administratively possible, 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. 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 1% towards the Employer share of Pension
for a total of 2%. Lastly, 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
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required, pay an additional 1% towards the Employer share of Pension for a total of 3% and
shall extend beyond the expiration of this Letter Agreement.
C. 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 Service Employees International Union
(SEIU) and Management and Professional units. Under this Letter Agreement, the City’s
contributions for PAPMA will similarly be converted to fixed dollar contributions.
D. Retiree health benefits
The City currently administers a multi-tiered system of retiree medical benefits with different
benefits and/or requirements based on hire date and retirement date. Most pertinent to this
discussion, management employees hired before January 1, 2004 currently receive benefits
under section 22892 of the Public Employees’ Medical and Hospital Care Act (PEMHCA) upon
retirement, while management employees hired on or after January 1, 2004 currently receive
benefits under section 22893 of the PEMHCA upon retirement. Section 22892 simply requires
employers to provide benefits in an equal amount for both employees and retirees. Section
22893, by contrast, provides benefits to retirees on a graduated scale based on years of service
and a statewide average of healthcare costs calculated by CalPERS. Although the City originally
shifted new hires to benefits under section 22893 as a cost-saving measure, in recent years,
some employees have expressed a preference for the benefit structure under section 22893
(i.e. the post-2004 benefit) rather than the benefit structure of section 22892 (i.e. the pre-2004
benefit).
In June 2015, the City Council approved a settlement agreement providing active Palo Alto
Police Officers’ Association (PAPOA) members subject to the section 22892 benefit with a one-
time, irrevocable option to elect benefits under section 22893. (CMR #5834). As part of this
Letter Agreement, eligible PAPMA members would receive a similar one-time opt in.
E. Remaining negotiations
The parties have set a deadline of June 30, 2016 to reach agreement on a full MOA. Over the
past several years, the parties have reached a number of tentative agreements on almost all
aspects of an MOA and the current Letter Agreement addresses several key issues. While a few
issues remain outstanding that may require additional negotiations, the parties are confident
that they will be able to finalize an initial MOA in short order. As noted above, in the event the
parties are unable to reach agreement on and approve/ratify an MOA by June 30, 2016, the
terms of the Letter Agreement will remain in effect, but salary and market adjustments for the
pay periods including June 30, 2016 and June 30, 2017 will be converted to 0% (zero percent).
Policy Implications
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Approval of the proposed settlement and adoption of the associated resolutions is consistent
with the Council’s policy direction to seek structural changes in employee compensation,
including changes in active and retiree medical benefits.
Resource Impact
The incremental cost of this package (over current costs for PAPMA) over the one and a half
year term is approximately $154,734 in the General Fund. This represents approximately 7.6%
of budgeted total compensation (salary and benefits) for PAPMA. The total cumulative cost
over the two year term of the agreement is approximately $317,736 in the General Fund. Any
salary and benefit cost changes due to this agreement will be incorporated in the FY 2017
Proposed Budget scheduled for release to the City Council late April 2016.
Environmental Review
Approval of the Letter Agreement and adoption of the associated resolution are not projects for
purposes of the California Environmental Quality Act and therefore no environmental review is
required.
Attachments:
2015-12-22 (2015 PMA Letter) Reso Adding Chapter 19 to MSRR (PDF)
PMA Salary Schedule (PDF)
PMA Side Letter Draft (PDF)
NOT YET ADOPTED
20151222 jjs 016‐HR 1
Resolution No. _____
Resolution of the Council of the City of Palo Alto Adding Section 1901
to the City of Palo Alto Merit System Rules and Regulations,
Incorporating by Reference Collectively Bargained Agreements with
the Palo Alto Police Managers’ Association
The Council of the City of Palo Alto RESOLVES as follows:
SECTION 1. Section 1901 of the Merit System Rules and Regulations is hereby added to
read as follows:
“1901. Memorandum of Agreement incorporated by reference. Upon adoption
by the Palo Alto City Council and for the duration of its effective term, any
Memorandum of Agreement or other collectively bargained agreement by and
between the City of Palo Alto and the Palo Alto Police Managers’ Association
(PAPMA) is hereby incorporated into these Merit System Rules and Regulations
by reference as though fully set forth herein. Said agreement shall apply to all
employees in classifications represented by PAPMA, except where specifically
provided otherwise herein.
In the case of conflict with this chapter and any other provisions of the Merit
System Rules and Regulations, this chapter will prevail over such other provisions
as to employees represented by said PAPMA.”
SECTION 2. It is not the intent of the City Council in adopting this Resolution to create
any right or obligation extending beyond the effective term of any collectively bargained
agreement.
SECTION 3. The Council finds that this is not a project under the California
Environmental Quality Act and, therefore, no environmental impact assessment is necessary.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
___________________________ ______________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
___________________________ ______________________________
Deputy City Attorney City Manager
NOT YET ADOPTED
20151222 jjs 016‐HR 2
_____________________________
Director of Administrative Services
____________________________
Director of Human Resources
Job Code FLSA Status 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 $ 67.50 $ 84.37 $ 101.25 $ 14,624.00 $ 175,490.00
149 Exempt Police Liet-Adv 086 $ 58.56 $ 73.19 $ 87.83 $ 12,686.00 $ 152,235.00
Effective
06/30/2016
Job Code FLSA Status 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 $ 69.53 $ 86.91 $ 104.30 $ 15,064.00 $ 180,773.00
149 Exempt Police Liet-Adv 086 $ 60.32 $ 75.39 $ 90.47 $ 13,068.00 $ 156,811.00
Effective
06/30/2017
Job Code FLSA Status 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 $ 71.62 $ 89.52 $ 107.43 $ 15,517.00 $ 186,202.00
149 Exempt Police Liet-Adv 086 $ 62.13 $ 77.66 $ 93.20 $ 13,461.00 $ 161,533.00
*If the parties reach agreement on an MOA that is approved by the City Council and ratified by the Union by June 30, 2016, the base salary rates and ranges for classifications covered by this
bargaining unit shall be increased on June 30, 2016 and June 30, 2017. 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.
City of Palo Alto
Police Management Association Salary Schedule
Effective upon ratification
Effective 06/30/2017*
Effective 06/30/2016*