HomeMy WebLinkAboutStaff Report 3902
City of Palo Alto (ID # 3902)
City Council Staff Report
Report Type: Action Items Meeting Date: 6/17/2013
City of Palo Alto Page 1
Summary Title: PAPMA Letter Agreement
Title: Adoption of a Resolution Approving Terms for Palo Alto Police
Managers' Association
From: City Manager
Lead Department: Human Resources
Recommendation
Staff recommends City Council adoption of the attached resolution approving employee
concessions and changes to benefit levels and pay for the Palo Alto Police Managers'
Association (PAPMA).
Motion
(a) Approve and direct staff to sign the Letter of Agreement confirming that Palo Alto Police
Managers' Association members pay the full CalPERS 9% member pension contribution and
receive 3% salary offset as soon as administratively possible;
(b) Approve tentative agreement eliminating the annual Professional Development
contribution of $1,500 per member effective July 1, 2013;
(c) Approve tentative agreement to modify the PAPMA salary ranges pursuant to the City's
Compensation Market Study, decreasing Police Lieutenant pay range by 2.11% and
increasing Police Captain pay range by 10.5%.
Background
City of Palo Alto Page 2
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 City began bargaining with PAPMA in early 2010 to create an initial Memorandum of
Agreement 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. Since there
is not a Memorandum of Agreement formalizing all pay, benefits and working conditions, these
terms serve as the status quo until the parties bargain something different.
The Meyers Millias Brown Act requires parties to return to bargaining prior to the next budget
adoption once terms and conditions of employment have been implemented. Therefore the
parties initiated bargaining in early May 2013 to develop a Memorandum of Agreement.
Discussion
The City and PAPMA held 3 bargaining sessions in May this year. The parties reached a
tentative agreement on additional employee concessions and changes to pay consistent with
recent changes made in the Management/Professional unit. The employees will pay the full
CalPERS pension member contribution of 9%. In exchange, the employees will receive a 3%
salary increase to offset the pension contribution. These changes will take place as soon as
administratively possible.
The employees in this unit currently receive $1,500 annually for Professional Development.
PAPMA will give up this benefit as a concession in the package.
The parties have also agreed to modify the Captain and Lieutenant pay ranges pursuant to the
City's Compensation Market Study findings. This change will ameliorate long-standing salary
compression issues within this unit, and is consistent with changes being proposed for the
Management/Professional Unit. The study recommends to decrease the pay range for Police
Lieutenant by 2.11% and increase the pay range for Police Captain by 10.5%. The movement of
pay ranges will not affect (decrease or increase) the current pay of any PAPMA member. Pay
increases may be recommended in the future by the Police Chief and approved by the City
Manager. Increases would be based on written performance appraisals, measuring overall
performance using criteria including level of expertise, scope of work performed and
managerial accountability.
Staff recommends that the City Council approve these changes now, pursuant to the City’s
agreement with PAPMA, even though the parties have not reached a comprehensive
City of Palo Alto Page 3
agreement on a complete Memorandum of Agreement. Negotiations continue with the intent
to develop the PAPMA's MOA. However the parties believe the formalization of these pay and
benefit changes at this time are an important step in moving towards consistency across
bargaining units as well as following the City Council's prior direction on labor relations.
Resource Impact
The adoption of Resolution #__ will have expense savings and cost avoidances.
Annual Savings
Across the board increase of 3% ($35,286)
Employees pay 9% PERS pension $105,858
Eliminate Professional Development $10,500
Total Annual Net Savings to City of Palo Alto $81,072
Policy Implications
This recommendation is consistent with City Council direction to achieve structural changes in
employee compensation for short-term and long-term savings.
Environmental Review
Implementation of terms is not a project subject to review under the California Environmental
Quality Act (CEQA).
Attachments:
ATTACHMENT A - Resolution Approving Letter of Agreement (PDF)
Exhibit A Letter of Agreement (PDF)
Exhibit B Professional Development (PDF)
Exhibit C Salary Schedule (PDF)
130611 dm 0160030
Resolution No. ________
Resolution of the Council of the City of Palo Alto to Approving a Letter
of Agreement Between the City of Palo Alto and the Palo Alto Police
Managers’ Association
R E C I T A L S
A. The Palo Alto Police Managers’ Association (PMA) is the exclusive bargaining
representative for City of Palo Alto (City) employees in the classifications of Police Lieutenant
and Police Captain; and
B. The City and PMA have met and conferred in good faith in accordance with
California Government Code section 3500, et seq.; and
C. The City and PMA have reached agreement on certain economic proposals and
wish to avoid unnecessary delay in implementing those agreements;
The Council of the City of Palo Alto RESOLVES as follows:
SECTION 1. The Letter of Agreement attached hereto as Exhibit “A” shall be
approved, confirming that PMA members pay the full CalPERS 9% member pension
contribution and shall receive 3% salary offset as soon as administratively possible.
SECTION 2. The tentative agreement attached hereto as Exhibit “B” shall be
approved, eliminating the annual Professional Development contribution of $1,500 per
member effective July 1, 2013.
SECTION 3. The tentative agreement attached hereto as Exhibit “C” shall be
approved, decreasing Police Lieutenant pay range by 2.11% and increasing Police Captain pay
range by 10.5%, pursuant to the City's Compensation Market Study.
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130611 dm 0160030
SECTION 4. The Council finds that this is not a project under the California
Environmental Quality Act and, therefore, no environmental impact assessment is necessary.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
__________________________ _____________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
__________________________ _____________________________
Deputy City Attorney City Manager
_____________________________
Director of Human Resources
_____________________________
Director of Administrative Services