HomeMy WebLinkAboutStaff Report 3939
City of Palo Alto (ID # 3939)
City Council Staff Report
Report Type: Action Items Meeting Date: 6/24/2013
City of Palo Alto Page 1
Summary Title: UMPAPA adoption of resolution
Title: Adoption of a Resolution Implementing Terms for Utilities Managers
and Professionals Association of Palo Alto Pursuant to California Government
Code Section 3505
From: City Manager
Lead Department: Human Resources
Recommendation
Staff recommends that Council hold a public hearing and adopt the attached resolution
implementing the changes described in the City’s Last, Best, and Final Offer to employees in the
Utilities Managers and Professionals Association of Palo Alto (UMPAPA).
Motion
Council adopt the attached resolution implementing the changes described in the City’s Last,
Best, and Final Offer to employees in the Utilities Managers and Professionals Association of
Palo Alto (UMPAPA)
Background
UMPAPA petitioned to form a bargaining unit in November 2009, and following proceedings
before the State Mediation and Conciliation Service, the City certified UMPAPA as a bargaining
unit in 2011. This unit consists of 43 managers and administrative staff earning an average
salary of $128,352 with an average total compensation of $194,450. The City and UMPAPA
started meeting and conferring in good faith in July 2011. On April 30, 2013, UMPAPA declared
impasse and requested that the City hold a public hearing to implement its Last, Best and Final
offer.
City of Palo Alto Page 2
The Meyers Milias Brown Act (“MMBA”) requires the City to bargain in good faith, and prohibits
it from changing terms and conditions of employment for represented employees without
completing good faith negotiations and legally mandated impasse procedures. Following the
completion of any applicable impasse procedures, the City may implement changes consistent
with its Last, Best, and Final offer to the Association. Implementation does not establish a
Memorandum of Agreement (MOA). Following implementation, the parties are still required to
negotiate matters within the scope of representation. In other words, even after
implementation, either party may request that negotiations resume at any time if there is some
indication that the impasse may be broken. At a minimum, the parties must meet and confer
prior to adoption of the budget the next fiscal year, FY 2015 in this instance. Thus, the parties
will likely resume negotiations in early calendar year 2014.
In addition, because the parties’ duty to bargain continues even after implementation, the City
may not implement any terms that amount to a waiver of UMPAPA’s right to request
bargaining. For example, language contained in the “Management Rights” and work stoppage
provisions of the City’s Last, Best, and Final Offer will not operate as a waiver of UMPAPA’s
rights, and will not grant the City any greater rights than it possesses under state law.
New state law effective January 1, 2012 allows a union to request fact-finding as an impasse
procedure within 30 days of the declaration of impasse. If fact-finding is requested, the City
must complete that process prior to implementing terms. Here, UMPAPA declined fact-finding
and the time period has run. Therefore, section 3505.7 allows the City to implement terms
after holding a public hearing.
Discussion
The parties have been bargaining for an initial MOA for two years and have held 29 formal
meetings. During these negotiations the City has focused on negotiating three key concessions
consistent with those established with other Management employee groups including the
Management and Professional unit, and the Fire Chiefs’ Association: (1) an employee cost share
for medical premiums of 10% for active employees, (2) paying the full CalPERS employee
retirement contribution and (3) decreasing the professional development benefit from $1500
to $500. SEIU and IAFF have also agreed to contracts with two of these three concessions not
including this specific professional development change.
In Dec. 17, 2012, the parties appeared to reach a tentative agreement on all issues, including
the concessions outlined above. However, the agreement dissolved after the City proposed
several minor clarifications throughout the contract and UMPAPA raised new concerns over the
“Management Rights” provision. In particular, UMPAPA objected to language asserting the
City’s unilateral rights to: promulgate work rules; determine work schedules; determine job
classifications and the allocation of positions; and determine the methods, means and
personnel by which services are provided, including the right to contract out. Although the City
City of Palo Alto Page 3
attempted to address UMPAPA’s concerns, it became clear that the parties would not be able
to reach a final agreement. On April 30, 2013, UMPAPA declared impasse.
Prior to UMPAPA’s declaration of impasse, the parties were able to draft and sign tentative
agreements on most subjects, and the City’s Last, Best and Final Offer achieves many of the
City’s goals in negotiations, with the exception of the City’s right to manage. Therefore staff
recommends implementing the City’s Last, Best, and Final Offer, which is included with the
attached resolution. The following provides a summary of the key terms for this unit, all of
which were tentatively agreed to by both parties prior to UMPAPA’s declaration of impasse:
Pension
UMPAPA employees to pay full employee CalPERS retirement contribution, eight
percent (8%) or seven (7%) depending on retirement formula employee is enrolled in
(employees currently paying two percent of the employee contribution and the City is
paying the difference); and
Salary
Three percent (3%) salary increase for all classifications, similar to Management and
Professional unit to offset the increased employee contribution to pension, effective
within three pay periods following adoption of attached resolution;
Additional salary increases to bring below-market classifications to market based on the
Koff and Associates 2012 Management and Professional Total Compensation Study, in
two phases: the first phase is effective within three pay periods following adoption of
attached resolution; and the second phase effective in the pay period including
December 1, 2013.
Medical Cost sharing increase and other health-related benefit changes
Employee health plan contribution increase to ten percent (10 %) medical contribution
similar to other employee units, City to pay up to 90% of second highest CalPERS plan;
All part-time UMPAPA employees will begin to pay pro-rated contributions for benefits
Reduce alternative medical waiver cash out to $284 per month flat rate; and
Future retirees will pay the same contribution as actives, as it changes from time to time
At-will status
New Division Managers and Assistant Department Directors will be hired under “At-will”
status with ability to separate or be asked to resign at any time with or without cause.
City of Palo Alto Page 4
Upon involuntary separation, UMPAPA employees will be eligible for severance up to 90
days.
Other employees in this bargaining group not considered “At-will” shall be subject to
twelve (12) month probation (at-will employees do not have a probation period).
Professional Development
Similar to Management and Professional unit, reduce amount per employee per year
from $1500 to $500 per fiscal year, with remaining $1,000 per person to be allocated to
Utilities department for training and development as determined appropriate by
department head.
New staffing changes
Effective July 1, 2013, changes in staffing to two positions were proposed by the Utilities
Department in FY14 budget process. One reclassification was requested changing a Senior
Resource Planner to Manager, Utilities Credit and Collection. The other reclassification
requested was to change an Inspector, Field Services to Supervisor, Inspection Services. These
requests were approved by Council in budget adopted June 13, 2013, and the newly created
positions are now listed in attached salary schedule.
Resource Impact:
The cost for adoption of this resolution is outlined as follows:
3% increase $164,887
Targeted salary increases $452,290
Annualized Subtotal $617,177
Variable Benefits – pension, Medicare, life
insurance - (28.5%)
$175,895
Total Adjustments Cost $793,073
Savings – PERS, medical ($344,641)
Annualized Net cost $448,432
*This grand total does not include the savings from NOT
retroactively implementing the agreement
City of Palo Alto Page 5
Attachments:
ATTACHMENT A - Reso UMPAPA Imposing Last Best Final Offer (PDF)
ATTACHMENT B - UMPAPA and Salary Schedule 2013 (PDF)
NOT YET APPROVED
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Resolution No. ____
Resolution of the Council of the City of Palo Alto Imposing the
City’s Last, Best, and Final Offer to Utility Management
Professional Association Pursuant to Government Code
Section 3505.7
R E C I T A L S
A. The Utility Management Professional Association (hereinafter “Union”)
filed to form a bargaining unit pursuant to the City’s Merit Rules, which was ruled by an
arbitrator to be a unit with the broadest feasible grouping based upon the internal
Utilities community of interest; and
B. Union was certified by the City of Palo Alto (hereinafter “City”) on April
13, 2011; and
C. Since July 2011, the City and Union have met and engaged in extensive
negotiations over the terms of their first Memorandum of Agreement, meeting
approximately twenty-nine (29) times in an effort to agree on the terms of an initial
Memorandum of Agreement; and
D. On April 30, 2013, the Union declared Impasse; and
E. The Union did not request Factfinding pursuant to PERB regulations; and,
F. Notwithstanding all of the efforts described above the Parties remain at
an impasse after the 30-day time period has been exhausted; and
G. In such circumstances Government Code section 3505.7 authorizes the
City to unilaterally implement its last, best, and final offer; and
H. On June 13, 2013 the City gave the Union written notification that the
City Council would consider a resolution to unilaterally implement the terms of the
City’s last, best and final offer at the City Council meeting on June 17, 2013.
The Council of the City of Palo Alto RESOLVES as follows:
SECTION 1. Implementation of Last, Best, and Final Offer. The
implementation of the City’s Last, Best, and Final Offer, attached hereto and
incorporated herein, is approved. The City Manager is authorized to implement the
terms of the Last, Best and Final Offer effective immediately upon adoption of this
resolution.
NOT YET APPROVED
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SECTION 2. Summary of Terms. This section provides a summary of the
terms and conditions of employment of members of the Utility Management
Professional Association bargaining unit. A more complete description of the terms and
conditions of employment for members of the Utility Management Professional
Association bargaining unit is contained in the attached Last, Best, and Final Offer.
Compensation.
The City Manager will determine each employee’s actual salary relative to the
control point for a classification. The City Manager has sole discretion to adjust
salaries within control point range. Increases within the control point range shall
only be awarded to employees who achieved an overall rating of “meets” or
“exceeds” expectations on their respective most recent annual performance
evaluation who have not been subject to a performance improvement plan or
disciplinary action during that evaluation period.
Effective the pay period including on the first day of the first pay period following
adoption of this resolution, or as soon as administratively possible, control
points for all classifications in the Association bargaining unit shall increase three
percent. Such increases are in addition to the selective control point
adjustments that will take effect on the same date, as reflected on Exhibit A to
the City’s Last, Best, and Final Offer. Except for employees hired or promoted
into the bargaining unit less than one hundred twenty (120) days before this
resolution is implemented, each employee’s base salary will increase to the
control point, provided that if an employee is being compensated above control
point at the time a control point increase takes effect, the City Manager has the
sole discretion to determine whether the employee’s pre-existing above-control
point salary level shall be increased.
Effective December 1, 2013 the salary control points set forth in Exhibit B to the
City’s Last, Best, and Final Offer attached hereto and incorporated herein, for the
classifications covered by this agreement will take effect. Also effective
December 1, 2013 employees in the bargaining unit before August 3, 2013 will
receive a percentage adjustment in base salary equal to the percentage increase,
if any, in the control point on that date as set forth in Exhibit B to the City’s Last,
Best, and Final Offer; provided that if an employee is being compensated above
control point at the time a control point increase takes effect, the City Manager
has the sole discretion to determine whether the employee’s pre-existing above-
control point salary level shall be increased.
Performance Appraisal.
Performance appraisals will be conducted in accordance with the terms
contained in the City’s Last, Best, and Final Offer.
NOT YET APPROVED
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Overtime and in-lieu holiday pay.
Compensation for overtime work, and scheduled work on paid holidays for
certain designated non-exempt employees shall be in conformance with the
Merit Rules and Regulations and Policies and Procedures.
Working out of classification pay.
If employees are assigned on a temporary basis to perform all significant duties
of a higher classification the City Manager may authorize payment within the
range of the higher classification for the specified time frame.
Call Out Pay.
Exempt utility management and professional classifications will be compensated
for Call Out as outlined in the City’s Last, Best, and Final Offer, with Management
approval (and will not be eligible for overtime pay).
Night Shift Premium.
Night shift differential shall be paid at the rate of 5% to regular full-time
employees who are regularly assigned to shift work between 6:00 p.m. and 8:00
a.m., or to employees who are temporarily assigned to work a full shift between
6:00 p.m. and 8:00 a.m.
Professional Development.
Reimbursement for authorized self-improvement activities may be granted each
unit employee up to a maximum of five hundred dollars ($500) per fiscal year.
In addition, 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.
Active Employee Health Plan.
a) Effective on the first of the calendar month falling sixty (60) days after adoption
of this resolution, City health premium contributions (medical, dental and vision)
will be prorated for part-time employees based on the number of hours per
week the part-time employee is assigned to work. Until that time, part-time
NOT YET APPROVED
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employees will remain subject to the practice in effect at adoption of this
resolution.
Active employees participating in City sponsored health plans will contribute ten
percent (10%) of the premium cost for the employee-selected plan, and the City
shall contribute ninety percent (90%) with maximum City contribution of ninety
percent (90%) of the second highest plan.
If a regular employee and/or the employee’s dependent(s) are eligible for
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 insurance coverage for same individuals.
Employees waiving City coverage may receive a stipend of $284 per month.
Retiree Health Plan
1. Employees Hired Prior to January 1, 2004
Monthly City-paid premium contributions for a retiree-selected health plan
through the CalPERS Health Benefits Program will be made as provided under
the Public Employees’ Medical and Hospital Care Act. The City’s contribution for
an employee hired before January 1, 2004 and whose retirement date is on or
after May 1, 2011 shall be the same contribution amount it makes from time to
time for active City employees.
2. Post – 1/1/04 Hires
Government Code section 22893 applies to those Unit members hired after
January 1, 2004, and provides that, upon retirement from the City an employee
is eligible for 50% of the specified employer health premium contribution after
ten (10) years of service credit, provided at least five of those years were
performed at the City of Palo Alto. After ten years of service credit, each
additional service credit year increases the employer contribution percentage by
5% until, at twenty (20) years’ service credit; the employee will be eligible upon
retirement for 100% of the specified employer contribution and 90% of the
contribution for their dependent coverage. The City of Palo Alto’s health
premium contribution for eligible post – 1/1/04 hires shall be the minimum
contribution set by PERS under section Government Code section 22893.
Dental Plan and Vision Care.
The City shall pay covered dental plan charges on behalf of all eligible employees
and dependents. The City shall provide vision care coverage for employee and
dependents. Coverage is administered by Vision Service Plan (VSP).
NOT YET APPROVED
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Additional Insurance Coverage.
The City shall provide a basic group term life insurance with Accidental Death
and Dismemberment (AD&D) coverage, supplemental life and AD&D insurance,
and long term disability insurance, as provided in the City’s Last, Best, and Final
Offer.
Employee Assistance Plan
The City shall provide employees access to an Employee Assistance Plan (EAP).
Excess Benefit.
The City shall provide an “Excess Benefit” in an amount not to exceed $2,500 per
employee per calendar year, through a plan designed to meet the requirements
of Section 125 of the Internal Revenue Code.
Pension Benefits
Effective the pay period including on the first day of the first pay period following
adoption of this resolution, or as soon as administratively possible, employees
under the 2.7%@55 retirement formula will pay the full eight percent (8%)
employee contribution.
Effective the pay period including on the first day of the first pay period following
adoption of this resolution, or as soon as administratively possible, employees
under the 2%@60 retirement formula will pay the full seven percent (7%)
employee contribution.
Employees hired on or after January 1, 2013 who are “new members” as defined
by the California Public Employees’ Pension Reform Act (PEPRA), will be subject
to the terms of that statute including but not limited to the following provisions:
1. Retirement formula. Effective for employees hired on or after January 1,
2013, the PEPRA requires the City to provide new employees, as defined in
that law, the CalPERS retirement formula two percent of final salary at age
62 (2%@62).
2. Employee contributions. Employees under the 2%@62 formula shall pay at
least 50 percent of the total normal cost or the same contribution rate as
“similarly situated” employees, whichever is higher.
3. Final compensation. Final compensation for employees under the 2%@62
benefit shall be as set forth in PEPRA, including calculation based on the
average of three highest consecutive years and a cap on pensionable
NOT YET APPROVED
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compensation (currently $136,440) based on IRS limits for employers that do
not participate in social security.
Sick Leave.
Sick leave shall be accrued at the rate of 3.7 hours per bi weekly pay period for
those employees working a forty hour duty schedule, provided the employee has
been in a pay status for 50 percent or more of a bi weekly pay period.
Management Annual Leave.
At the beginning of each calendar year designated exempt employees will be
credited with 80 hours of management annual leave.
Vacation.
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. Employees are eligible to cash out
vacation accrual balances in excess of 80 hours pursuant to the provisions
contained in the City’s Last, Best, and Final Offer.
Bereavement.
Leave of absence with pay of three days may be granted an employee by the
head of his/her department in the event of death in the employee’s immediate
family.
Probation.
Employees who are not At-Will shall serve an initial probationary period of
twelve (12) months. During the probationary period the employee serves at the
will of the City and may be terminated for no reason or for any lawful reason,
and such termination is not subject to appeal.
At Will Status.
Certain unit positions are designated as having “at-will” employment status.
Employees who hold at-will positions shall have no constitutionally protected
property or other interest in their employment with the City. Notwithstanding
any provision in the Merit System Rules and Regulations or any other City rule,
policy or procedure, at-will employees have no right or expectation to continued
employment or pre-or post-disciplinary due process and work at the will and
NOT YET APPROVED
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pleasure of the hiring authority. Work for an at-will employee may be eliminated
and/or the employee may be terminated, or asked to resign, at any time, with or
without cause, upon notice to that employee, and the employee may resign at
any time upon written notice to the hiring authority.
Effective on the date of adoption of this MOA, new employees hired or
promoted to the following classifications shall be at-will employees: Assistant
director, engineering manager, communications manager, manager electric
operations, manager customer service & meter reading, manager utilities
marketing services, manager utilities operations WGW, utilities compliance
manager.
At-will employees will be eligible for, and shall receive, all regular benefits (i.e.,
health insurance, CalPERS contribution to the extent paid by City, etc.) and
vacation, sick leave, and management leave as are generally provided to unit
employees.
Reimbursement.
The City may provide a basic relocation benefits package for new employees,
upon approval of the City Manager or designated subordinate, and in accordance
with the City’s Relocation Expense Policy.
Meal Allowance
Employees assigned to attend night meetings or who travel for business
purposes are eligible to receive reimbursement as described by City Policy.
Reduction in Workforce
The City will make every effort to provide written notice of its intent to lay off
employees in this unit and will meet with Association upon request to discuss
alternatives to layoff.
SECTION 3. Nothing in this Resolution shall be construed as depriving the
Union of its right to meet and confer on matters within the scope of representation,
whether or not such matters are included in this Resolution, prior to adoption of the
City budget or as otherwise required by law.
SECTION 4. If any provision or any part of a provision of this Resolution shall be
finally determined to be invalid, illegal, or otherwise unenforceable, such determination
shall not impair or otherwise affect the validity, legality, or enforceability of the
remaining provision or parts of the provision this Resolution, which shall remain in full
force and effect as if the unenforceable provision or part were deleted.
NOT YET APPROVED
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SECTION 5. The Council finds that this is not a project under the California
Environmental Quality Act and, therefore, no environmental impact assessment is
necessary.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST: APPROVED:
City Clerk Mayor
APPROVED AS TO FORM:
Deputy City Attorney City Manager
______________________________
Chief People Officer
TENTATIVE
City of Palo Alto
and
Utility Management Professional Association of Palo Alto
(UMPAPA)
Memorandum of Agreement
[Date of Council Adoption], 20l3-December 31, 2014
PREAMBLE
This memorandum of Agreement between the City of Palo Alto, hereinafter referred to as the
"City", and the Utilities Management and Professional Association of Palo Alto, hereinafter
referred to 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
The City recognizes the Association as the exclusive representative of employees occupying
positions in the bargaining unit certified by the City in accordance with the decision of Arbitrator
Kagel dated April 13,2011.
ARTICLE II -NO DISCRIMINATION
The Association and the City hereby agree that there shall be no discrimination because of race,
color, age, handicap,· sex, national origin, sexual or gender 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 Association, or
participation in the lawful activities of the Association.
ARTICLE III -PAYROLL DUES DEDUCTION
The City shall deduct Association member dues, and any other mutually agreed upon payroll
deduction from the bi-weekly pay of bargaining unit employees. The dues deduction must be
authorized in writing by the employee on an authorization fonn acceptable to the City and to the
Association. City shall remit the deducted dues to the Association as soon as possible after
deduction.
ARTICLE IV -WORK STOPPAGE AND LOCKOUTS
The Association, its representatives or members shall not engage in or cause, instigate,
encourage, sanction or condone a work stoppage or sympathy work stoppage, withholding of
services, leave of absence abuse or work slowdown of any kind against the City of Palo Alto or
its citizens by its members during the tenn of this MOA. No Association member shall refuse to
cross any picket line in the conduct of the Utility business, nor shall the Association, its
representatives or members discriminate in any way towards anyone who refuses to participate in
a work stoppage or any of the job actions cited above. The City agrees that it ""ill not lock out
Association members.
ARTICLE V -CITY RIGHT TO MANAGE
The City retains and reserves, without limitation, all powers, rights, authority, duties, and
responsibilities to manage the City including, but not limited to;
2
1. Management and administrative control of the City, its operations, and its properties and
facilities;
2. Evaluate, hire, promote, transfer, demote, discipline, and discharge employees;
~,-_Promulgate, enforce aiidperiOdicaiJ.y revise or rescind reasonable work rules, operationaJi
and,,<iministr,,~i\'epoHcies, qualitative an~qullntitative standa:rds,and procedure,;
4. Assign and distribute work;
. 5. betermine the methods~meaiis, and personnel by which services are caITiedout including
\he right to sooeoll:l:Faet Of eefttfaet em, eofttfttet ill, transfer duties between Cit~
employees whether or not they are in the bargaiI$lg unit. and to subcontract or contract
out. subject to the Provisions of Article XIILsection 4 ofthisMOA;
6. Establish and revise reasonable standards of attendance, conduct, and performance and
to enforce such standards;
7. Determine and implement technology and equipment used in the performance of work,
and to determine work locations;
8. DetennineJob classi.ficatlons and the allocation of positions to thOse dassifications~
2._ Determil1e work schedul,)s including, but notIiInited to, the hours (jf work and rest~
10. Determine payroll practices,
II. All rights conferred upon and vested in it by the law and the Constitutions of the State of
California and the United States, and
fI2.Any-ofuei-iight traditionally and historicaliyexercised by the City with_ reSJle£tto;
~Il1Ploye~sJindoperations within thes£ope of the bargaining unit~
Nothing in this Agreement is to be interpreted as constituting a waiver of the City's rights and
responsibilities to manage the City and create and maintain programs and services that reflect its
public's wishes. The intent of this MOA is to establish wages, working hours, and conditions of
employment with the Association.
ARTICLE VI -COMPENSATION
Section 1 -Compensation.
a) Classifications allocated to salary control points. The classifications in the Utilities
Department that are covered by this MOA and the salary control points for those
classifications are listed on Exhibit A, which is attached hereto and incorporated herein. The
City Manager will determine each employee's actual salary relative to the control point for a
classification based on a variety of factors including but not limited to adaptive performance,
achievement of pre-determined objectives, experience, City financial conditions, etc.
b) City Manager Sole Discretion. The City Manager has sole discretion to adjust salaries within
control point range. The City :tvtanager may increase or decrease an employee's salary if, in
the City Manager's sole judgment, such adjustments are warranted based on factors such as
those described in subsection A above, provided that the salary rate resulting from such
adjustment may not exceed one hundred twenty percent (120%) or fall below eighty percent
(80%) of the salary control point for the classification. Increases within the control point
3
range shall only be awarded to employees who achieved an overall rating of "meets" or
"exceeds" expectations on their respective most recent annual performance evaluation who
have not been subject to a performance improvement plan or disciplinary action during that
evaluation period.
c) Initial Control Point Increases. Effective liBe!'lay !'leflea iBeltldiHg eD the first day of the first
pay period following adoption of this MOA, or as soon as administratively possible, control
points for all classifications in the Association bargaining unit shall increase three percent, as
shown on Exhibit A. In no event will such increase take effect later than the beginning of the
third full pay period following adoption of this MOU by the City CoUJ'J.cil. Such increases
are in addition to the selective control point adjustments that will take effect on the same
date, as reflected on Exhibit A. Except for employees hired or promoted into the b8.rgainfn~
~~ _less than one hundred twenty (120) days before this subsection c)ls implemented,
each employee's base salary will increase to the control point, provided that if an employee is
being compensated above eontrol point at the time a control point increase takes effect, the
City Manager has the sole discretion to determine whether the employee's pre-existing
above-control point salary level shall be increased, based on the factors such as those set
forth in subsections A and B above.
d) Additional Targeted Control Point Adjustments. Effective December 1, 2013 the salary
control points set forth in Exhibit B, attached hereto and incorporated herein, for the
classifications covered by this agreement will take effect. Also effective December I, 2013
employees in the bargaining unit before August 3, 2013 will receive a percentage adjustment
in base salary equal to the percentage increase, if any, in the control point on that date as set
forth in Exhibit B; provided that if an employee is being compensated above control point at
the time a control point increase takes effect, the City Manager has the sole discretion to
determine whether the employee's pre-existing above-control point salary level shall be
increased, based on the factors such as those set forth in subsections A and B above.
Section 2 -Performance Appraisal, Performance appraisals will be conducted each fiseal year
between July 1 and September 30, inclusive. This process includes both review of previous
performance plan and preparation of the performance plan for the next planning period (usually
the fiscal year). Performance plans are jointly prepared by the employee and supervisor with the
concurrence of the department head or Council-appointed officer. The performance plans shall
contain measurable objectives which place special emphasis on position description duties or
specific assignments. Progress toward meeting objectives shall be monitored periodically. The
performance appraisals should be implemented in manner that will achieve the following
objectives.
1. Define the employee's job duties and expected level of performance for the next review
period to ensure that both the employee and supervisor have a clear understanding of the
employee's role and responsibilities;
2. Evaluate and document past performance to serve as a basis for establishing and
obtaining future performance standards/objectives;
4
3. Facilitate two-way communication and understanding between the employee and his or
her supervisor, counsel and encourage employees to work toward a learning development
plan and realize their full potential; and
4. Establish future work plan objectives.
Work plans should include job related projects or special goals related to regular job duties when
applicable, At the conclusion of the fiscal year (or review period), supervisors shall make a final
determination of the overall performance rating. Recommendations shall be forwarded to
department heads and to the Chief People Officer who will then determine individual fixed
adjustments according to the provisions of the compensation plan.
Section 3 -Overtime and in-lieu holiday pay. Compensation for overtime work, and scheduled
work on paid holidays for certain designated non-exempt employees shall be in conformance
with the Merit Rules and Regulations and Policies and Procedures. Overtime eligible employees
shall be paid at the rate of time and one-half times the employees' basic hourly salary unless
called out for an emergency arising out of situations involving real or potential loss of service,
property or personal danger, in which case additional pay will be at the rate of two times the
employees' basic hourly salary. Employees who work a schedule where a regular day off falls on
a holiday will be paid for the hours they would have normally worked on that day. If the holiday
falls on a non-workday for an exempt employee, the employee may, with supervisory approval,
take another day off within the pay period or the following pay period.
Section 4. -Working out of classification pay, If employees are assigned on a temporary basis
to perform all significant duties of a higher classification the City Manager may authorize
payment within the range of the higher classification for the specified time frame. Working out
of class pay is normally not to exceed ten percent (10%) more than the employee's current salary
and shall be documented on a Personnel Action Form, with a description of the additional duties
to be performed and an end date.
Section 5 -CallOut Pay. Exempt utility management and professional classifications will be
compensated for Call Out as outlined below with Management approval (and will not be eligible
for overtime pay). Callout applies when:
L An employee previously left City premises,
2. Is called back to the work location outside of regularly scheduled working hours, and
3. The Call Back is for an emergency arising out of situations involving real or potential
loss of service, property or personal danger. Employees called back will be expected to
respond to the location of the problem.
Compensation is per CallOut as reported on timecard and will paid as follows;
Monday through Friday
Saturday, Sunday, Holidays
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$140 per day
$200 per day
Section 6 -Night Shift Premium. Night shift differential shall be paid at the rate of 5% to
regular full-time employees who are regularly assigned to shift work between 6:00 p.m. and 8:00
a.m., or to employees who are temporarily assigned to work a full shift between 6:00 p.m. and
8:00 a.m.
Section 7 -Professional Development. This program provides employees with resources to
improve and supplement their job and professional skills. Reimbursement for authorized self
improvement activities may be granted each unit employee up to a maximum of five hundred
dollars ($500) per fiscal year. In addition, 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:
1. Civic and professional association memberships
2. Conference participation and travel expenses, which must occur within the fiscal year in
which the funds are encumbered
3. 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
4. Professional and trade journal subscriptions not to exceed 12 months.
Approval will be at the discretion of the department head and signature is required on the
reimbursement form. Amounts under this professional development program will be pro-rated in
the first year of employment or promotion into a position covered by this MOA.
ARTICLE VII -HEALTH BENEFITS
Section 1 -Group Insurance.
a) Effective Date of Coverage. 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,
long term disability and life insurance plans if these benefits are elected. Effective on the
first of the calendar month falling sixty (60) days after adoption of this MOA, City health
premium contributions (medical, dental and vision) will be prorated for part-time employees
based on the number of hours per week the part-time employee is assigned to work. Until
that time, part-time employees will remain subject to the practice in effect at adoption of this
MOA.
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b) Active Employee Health Plan.
1. Based on an employee's family status and choice of City sponsored health plan, the
City shall contribute toward the monthly medical premium on. behalf of eligible
employees and eligible dependents, as provided in subsection b )2. below. Eligible
dependents include spouses, children under age 26 and never married (natural, adopted,
or stepchildren), and domestic partners registered with the Secretary of State.
2. Beginning on the same date that wage adjustments pursuant to Article VI,
Compensation, section 1 subsection c of this MOA take effect participating employees
will contribute ten percent (10%) of the premium cost for the employee-selected plan,
and the City shall contribute ninety percent (90%) with maximum City contribution of
ninety percent (90%) of the second highest plan.
c) Coverage for Domestic Partners.
1. Domestic Partnership Registered with the California Secretary of State: Employees
may add their domestic partner as a dependent to their elected health plan coverage if
the domestic partnership is registered with the Secretary of State.
2. Domestic Partner Not Registered with the California Secretary of State:; Domestic
partners who meet the requirements of the City of Palo Alto Declaration of Domestic
Partnership, and are registered with the Human Resources Department, will be eligible
for reimbursement of the actual monthly premium cost of an individual health plan, not
to exceed the maximum monthly city employer contribution for one-party coverage
under the CalPERS Health Benefits Program for an employee covered under this
agreement. Evidence of premium payment will be required with request for
reimbursement.
d) Alternative Medical Benefit Program
If a regular employee andlor the employee's dependent(s) are eligible for 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 assoeiation plan and waives his/her right to thc City of Palo
Alto's medical insurance coverage for same individuals. Employees waiving City
coverage may receive a stipcnd of $284 per month.
e) Retiree Health Plan
I. Employees Hired Prior to January 1, 2004
Monthly City-paid premium contributions for a retiree-selected health plan through the
CalPERS Health Benefits Program will be made as provided under the Public
Employees' Medical and Hospital Care Act. The City's contribution for an employee
hired before January 1, 2004 and whose retirement date is on or after May 1, 2011
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shall be the same contribution amount it makes from time to time for active City
employees.
2. Post -1/1/04 Hires
Government Code section 22893 applies to those Unit members hired after January I,
2004, and provides that, upon retirement from the City an employee is eligible for
50% of the specified employer health premium contribution after ten (10) years of
service credit, provided at least five of those years were performed at the City of Palo
Alto. After ten years of service credit, each additional service credit year increases the
employer contribution percentage by 5% until, at twenty (20) years' service credit;
the employee will be eligible upon retirement for 100% of the specified employer
contribution and 90% of the contribution for their dependent coverage. The City of
Palo Alto's health premium contribution for eligible post -1/1/04 hires shall be the
minimum contribution set by PERS under section Government Code section 22893.
f) Dental Plan
1. The City shall pay covered plan charges on behalf of all eligible employees and
dependents. Dependents include eligible domestic partners as defined in Section I
subsection c of this Article VII, Health Benefits.
2. The City's Dental Plan provides the following:
a. Maximum Benefits per Calendar Year-$2,000 per person
b. Lifetime Maximum for Orthodontics-The City will pay up to $2,000.00 for
orthodontia coverage (not included in annual dental maximum)
c. Major Dental Services 50% UCR·
d. Orthodontics 50% UCR·
e. Basic Benefits (All other covered services)
i) First Calendar Year of Eligibility 70% UCR·
"ii) Subsequent Calendar Years 70%-100%
iii) ·Usual, Customary, and Reasonable
iv) For each dental plan member, the percentage of coverage for basic
benefits will begin at 70% for the first calendar year of coverage and
increase by 10% (up to a maximum of 100%) effective the first day of the
next calendar year as long as the member utilizes the plan at least once
during the current year. Per the Delta Dental contract effective October"l,
2005, if the member does not use the plan during the current year, the
percentage of coverage for the next calendar year shall remain unchanged
from the current year.
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g) Vision Care
v) If a dental plan member loses coverage under tbe plan, tbe applicable
percentage of coverage for basic benefits provided during any future
period of coverage will commence at 70% as if tbe dental plan member
was a new enrollee. Examples of when a member might lose coverage
under the plan include:
• Employee goes on an unpaid leave of absence and elects not to pay
tbe required dental premiums for hisfher family's coverage during
tbe leave.
• Employee elects to drop one or more covered dependents from tbe
plan during an open enrollment period so tbat tbey might be
covered on a spouse's non-City of Palo Alto dental plan.
1. The City shall provide vision care coverage for employee and dependents. Coverage
is administered by Vision Service Plan (VSP). The plan "vill provide an exam every
12 months; lenses every 24 montbs; frames every 24 months, all subject to a twenty
dollar ($20) co-payment as defined in tbe Vision Services Benefits Plan A schedule.
2. Dependents include eligible domestic partners as defined in Section 1, Subsection c
of this Article VII, Health Benefits.
h) Basic Life Insurance
The City shall provide a basic group term life insurance witb Accidental Deatb and
Dismemberment (AD&D) coverage, in an amount equal to the employee's annual basic
pay (rounded to tbe next highest $1,000) at no-cost to tbe employee. AD&D pays an
additional amount equal to tbe employee's annual basic pay (rounded to the next highest
$1,000).
i) Supplemental Life And AD&D Insurance
An employee may, at hisfher 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 tbe employee is up to $325,000 and tbe maximum
amount of AD&D coverage available is up to $325,000.
j) Long Term Disability Insurance
The City shall provide long term disability (LTD) insurance witb a benefit of 2/3 montbly
salary, up to a maximum benefit of ten tbousand dollars ($10,000) per month. The LTD
plan will have a waiting period of sixty days, as provided by tbe applicable carrier
agreement. The City shall pay tbe premium for the first six thousand dollars ($6,000) of
base montbly salary. For employees whose base monthly salary exceeds six thousand
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dollars ($6,000), the employee shall pay the cost of the required premium based upon their
monthly salary between six thousand dollars ($6,000) and fifteen thousand dollars
($15,000).
For employees whose base monthly salary exceeds six thousand dollars ($6,000) and who
have no eligible dependents covered under the City's medical, dental or vision plans, the
City will pay up to seventeen dollars fifty cents ($17.50) per month toward the employee's
cost for LTD coverage.
k) Physical Examinations
All employees are eligible to receive an annual physical examination as follows:
1. Use the periodic health exam benefit as provided under the CalPERS Health Plan
option you have selected. Each of the CalPERS 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.
2. The types oftests 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.
3. 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 CalPERS Health Plan.
The Reimbursement for Periodic Physical Exam Form is available on the Human Resources
Intranet site. This benefit will not be pro-rated.
I) 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 twenty-four (24) hours a day, seven days a
week. Guidance is also available online.
Section 2 -Parties to Meet and Confer Regarding Health Benefits During Term of MOA.
Association understands and agrees that City may, upon written notice to Association, reopen
negotiations at any time during its term for the purpose of negotiating over the terms of a
possible cafeteria plan for active employees and retirees pursuant to IRS Code Section 125 in
lieu of the existing contribution funding system. In addition, during those negotiations, the
parties may by mutual written agreement, agree to negotiate other related benefits including
impacts on total compensation. Upon receipt of notice from City, Association and City agree to
negotiate in good faith.
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ARTICLE VIII -EXCESS BENEFIT
Section 1 -IRS compliant plan. 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 that they can designate among the following options:
Section 2 -Medical Flexible Spending Account (Medical FSA). The 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 copayments 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.
Section 3 -Deoendent 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 armual dependent care
expenses that the participant has elected under the City's Flexible Benefits Plan, do not exceed
the maximum permitted under the DCAP.
I. The armuai 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 VI":ill be reduced by any amount reimbursed under the Excess
Benefit Plan.
Section 4 -Non-taxable Professional Development Spending Account. Provides reimbursement
for non-taxable professional development expenses (e.g. job-related training and education,
II
seminars, training manuals, etc.) to the extentthcy are not paid or reimbursed under any other
plan of the City.
Section 5 -Deferred Compensation. Provides a one-time contribution to the employee's City
sponsored 457 Deferred Compensation plan with either ICMA-RE or an altemative.
Amounts designated by employees to either the Medical FSA, Dependent Care FSA, or
Professional Development options are done so on a "use -it-or-Iose-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.
Section 6 -Gym Membership. Provides reimbursement for annual or monthly memberships,
including personal trainers. Reimbursement for this expense is taxable to the employee.
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.
ARTICLE IX -LEAVES
Section I -Sick Leave.
a) Sick leave shall be accrued bi-weekly provided the employee has been in a pay status for 50
percent or more of abi-weekly pay period. Sick leave shall be accrued at the rate of 3.7
hours per bi-weekly pay period for those employees working a forty-hour duty schedule.
Those assigned work schedules, which are greater or lesser than forty hours will accrue sick
leave at the ratio of their work schedule to forty hours.
b) Employees may use up to twenty 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. .
c) Employees leaving the municipal service shall forfeit all accumulated sick leave, except as
otherwise provided by law and by Section 609 of the Merit Rules and Regulations. 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.
d) Employees that were hired before December I, 1983 and 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. See Merit System
Rules and Regulations, Chapter 6, Section 609.
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e) Up to nine days of sick leave per calendar year may be used for illness in the immediate
family, including a registered domestic partner.
f) Employees eligible, as specified above if hired before December I, 1983, to be compensated
for sick leave may annually convert sick leave hours in excess of 600 to cash or deferred
compensation, according to the formula set forth above, up to a maximum of $2,000 per
fiscal year.
Section 2 -Management Annual Leave. At the beginning of each calendar year designated
exempt employees will be credited with 80 hours of management annual leave. This leave is
granted in recognition of the extra hours exempt 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, 10-hour shift workers will receive one 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.
Section 3 -Vacation. Vacation will be accrued when an employee is in pay status and will be
credited on a bi-weekly basis. Total vacation accrual at anyone 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:
a) Less than nine years. For employees completing less than nine years continuous service: 120
hours vacation leave per year; provided that:
The City manager is authorized to adjust the annual vacation accrual of employees hired
on or after July I, 200 I, to provide up to 40 additional hours (i.e., to a maximum annual
accrual of 160 hours) for service with a prior employer.
b) Nine, but less than fourteen years. For employees completing nine, but not more than
fourteen years continuous service; 160 hours vacation per year.
c) Fourteen, but less than nineteen years. For employees completing fourteen, but not more than
nineteen years continuous service; 180 hours vacation leave per year.
d) Nineteen or more years. For employees completing nineteen or more years continuous
service; 200 hours vacation leave per year.
e) 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 the employee has taken 80 vacation hours' in the previous 12 months and
has followed the election procedures set forth in this section.
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Employees must elect the number of vacation hours they will cash-out during the next
calendar year, up to the maximum of 120 hours. The election will apply only to vacation
hours that are accrued in the next calendar year and that are eligible for cash-out.
The election to cashoout 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-designated on the election form.
Employees who do not elect a cash-out amount by December 31 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. Employees who elect
cash-out amounts 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 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 request, the maximum available will be paid. For employees who have not
requested cash-out of the elected amount by November 1 of each year, Payroll will
automatically cash-out the elected amount, or the maximum available amount, in a paycheck
issued on or after the payroll date including November 1.
Section 4 -Bereavement. Leave of absence with pay of three days may be granted an employee
by the head of his/her department 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, step-son,
daughter, daughter-in-law, step-daughter, mother, mother-in-law, father, father-in-law, brother,
brother-in-law, sister, sister-in-law, grandmother, grandmother-in-Iaw, grandfather, grandfather
in-law, grandchild, aunt, uncle, niece, nephew, registered domestic partner, or a close relative
residing in the household of 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 days
shall be subject to the approval of a Council-Appointed Officer for employees under his/her
controL
Section 5 -All Other Leaves. For all other leaves of absence refer to Chapters 5 and 8 of the
City's Merit Rules and Regulations.
ARTICLE X -WORKERS' COMPENSATION
Section 1 -Emplovees unable to work due to occupational injU!)'. illness or disease. Employees
unable to work due to occupational injury, illness or disease will be required to report to
management to discuss his or her status and ability to return to work on restricted or unrestricted
duty, subject to the limitations imposed by applicable law. This requirement is not meant to
unreasonably restrict employee's activities while off work due to sueh incapacity as long as sueh
activities are cleared by the treating physician, treating program or alternative treatment program
and the employec is available for restricted or unrestricted duty as soon as medical clearance can
be received.
Section 2 -Temporary Disability. While temporarily disabled, employees shall be entitled to
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use accrued sick leave for the first three (3) days following the date of injury and thereafter shall
be paid full base salary for a period not to exceed fifty-seven (57) calendar days (including
Saturdays, Sundays and Holidays), unless hospitalized, in which case employees shall be paid
full base salary for a period not to exceed sixty (60) days from date of injury.
For any temporary disability continuing beyond the time limits set forth above, employees shall
be paid two-thirds (66.66%) of their full base salary at the time of injury for the duration of such
temporary disability in conformance with State law.
During the period of temporary disability, an employee's eligibility for health, dental, life, LTD,
or other insured program will continue with City contributions at the same rate as for active
employees and vacation and sick leave benefits shall continue to accrue. In case of temporary
disability beyond the time limits set forth above, sick leave and vacation benefits shall not be
accrued.
ARTICLE XI -RETIREMENT PENSION
a) Employees hired before July 17, 2010
1. Retirement formula. Effective pay period inclusive of 1/6/07, the City's Public
Employees' Retirement System (PERS) benefits changed to the 2.7%@ 55 formula
for non-safety members (from 2% @55).
2. Employee contributions. The City currently pays 6% of the employee's 8% CalPERS
share. Beginning on the date that the control point adjustment specified in Article VI,
Compensation, Section 1, subsection c) takes effect, employees under the 2.7%@55
retirement formula will pay the full eight percent (8%) employee contribution.
3. Final compensation. Final compensation for purposes of retirement shall be as set
forth in the City's contract with CalPERS, including, when applicable, the
Government Code Section 20692 Optional Benefit.
b) Employees hired on or after July 17,2010.
1. Retirement formula. For miscellaneous employees hired on or after July 17,2010, or
on or after January 1,2013 who are not subject to the pension formula in the Public
Employees' Pension Reform Act (PEPRA), the City offers the CalPERS retirement
formula two percent (2.0%) of final salary at age sixty (60).
2. Employee contributions. The City currently pays 5% of the 7% for employees under
the 2%@60 retirement formula. Beginning on the date that the control point
adjustment specified in Article VI, Section 1, subsection c) takes effect, employees
under the 2%@60 retirement formula will pay the full seven percent (7%) employee
contribution.
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3. Final compensation. Final compensation for purposes of retirement shall be as set
forth in the City's contract with CaiPERS, including, when applicable, the
Government Code Section 20692 Optional Benefit or as required by law.
c) New Employees hired on or after January 1, 2013
Employees hired on or after January 1, 2013 who are "new members" as defined by the
California Public Employees' Pension Reform Act (PEPRA), will be subject to the terms of
that statute including but not limited to the following provisions:
1. Retirement formula. Effective for employees hired on or after January 1, 2013, the
PEPRA requires the City to provide new employees, as defined in that law, the
CalPERS retirement formula two percent of final salary at age 62 (2%@62).
2. Employee contributions. Employees under the 2%@62 formula shall pay at least 50
pereent of the total normal cost or the same contribution rate as "similarly situated"
employees, whichever is higher.
3. Final compensation. Final compensation for employees under the 2%@62 benefit
shall be as set forth in PEPRA, including calculation based on the average of three
highest consecutive years and a cap on pensionable compensation (currently
$136,440) based on IRS limits for employers that do not participate in social security.
d) The City shall further amend its contract with CaiPERS to provide miscellaneous members
hired on or after August 1, 2013 with the CalPERS retirement formula of 2%@60 with a
final compensation calculation, for pension determination purposes, based on the employee's
three consecutive highest years of compensation earnable, as provided by Government Code
Section 20037. The City may delay the adoption or implementation of the foregoing
amendment to the extent it deems such delay necessary to accornmodate legal and
administrative requirements. In such event, employees hired between and including August
1, 2013 and the day before the amendment's implementation date will be placed in the
2%@60 formula with the single highest year earnable compensation as described above.
e) Employee CalPERS contributions tax deferred. Employee CaiPERS contributions shall be
made on a tax deferred basis, in accordance with Section 414(h)(2) of the Intemal Revenue
Code. All provisions of this subsection are subject to and conditioned upon compliance with
IRS regulations.
ARTICLE XII -PROBATION AND AT WILL STATUS
Section I Probation. Employees who are not At-Will shall serve an initial probationary period
of twelve (12) months. During the probationary period the employee serves at the will of the City
and may be terminated for no reason or for any lawful reason, and such termination is not subject
to appeal.
Section 2 At Will Status. Certain unit positions are designated as having "at-vvill" employment
status. Employees who hold at-will positions shall have no constitutionally protected property
16
or other interest in their employment with the City. Notwithstanding any provision in the Merit
System Rules and Regulations or any other City rule, policy or procedure, at-will employees
have no right or expectation to continued employment or pre-or post-disciplinary due process
and work at the will and pleasure of the hiring authority. Work for an at-v.ill employee may be
eliminated and/or the employee may be terminated, or asked to resign, at any time, with or
without cause, upon notice to that employee, and the employee may resign at any time upon
written notice to the hiring authority.
Section 3 -At-will UMPAPA positions. Effective on the date of adoption of this MOA, new
employees hired or promoted to the following classifications shall be at-'.ViIl employees:
Assistant director, engineering manager, communications manager, manager electric operations,
manager customer service & meter reading, manager utilities marketing services, manager
utilities operations WGW, utilities compliance manager.
At-'.Vill employees will be eligible for, and shall receive, all regular benefits (Le., health
insurance, CalPERS contribution to the extent paid by City, etc.) and vacation, sick leave, and
management leave as are generally provided to unit employees and described in this MOA, as
amended from time to time.
(Not Yet Agreed Upon) Section 4 -Severance. At-will employees who are terminated or asked
to resign shall, upon execution of a release of all claims against the City, be eligible for a .
severance payment equivalent to four (4) weeks of salary and benefits, increasing after
completion of the first full year of service by one (I) week for every completed year of service,
up to a maximum of 12 weeks. For example, an at-'.Vill employee who has completed six (6)
years of service would be eligible to receive tcn (10) weeks of severance (4 weeks plus I week
for each year of service after the first year).
No severance shall be paid if the employee voluntarily quits or is terminated for serious
misconduct involving abuse of his or her office or position, including but not limited to waste,
fraud, violation of the law under color of authority, misappropriation of public resources,
violence, harassment or discrimination. If the employee is later convicted of a crime involving
such abuse of his or her position the employee shall fully reimburse the City as provided by state
law.
ARTICLE xm -MISCELLANEOUS
Section 1 -Reimbursement for Relocation Expense. The City of Palo Alto, in rare instances,
may, provide a Basic Relocation Benefits Package for new employees, upon the approval of the
City Manager or designated subordinate. In addition, the provision of "Optional Benefits", or
portions thereof, may be extended for exceptional circumstances and only by approval of the
City Manager or designee. The details of the Relocation Expense program are specified in the
City's Relocation Expense policy.
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SectionZ -Meal allowance. Employees assigned to attend night meetings or who travel for
business purposes are eligible to receive reimbursement as described by City policy. This
provision covers only receipted meals actually taken and submitted for reimbursement.
Section 3 -Reduction in Workforce. The City will make every effort to provide "'TItten notice
of its intent to layoff employees in this unit and will meet with Association upon request to
discuss alternatives to layoff.
Section 4 -Contracting Out.
A. As provided in subsection Eo the City shall provide notice of any plarmed action(s) that
would result in the layoff of one or more Association bargaining unit members and where
ueither of the following apply:
1. The plarmed City action(s) is to eontract out work historically and exclusively
perfonned by Association bargaining unit members;
2. The plarmed City action is to substantially increase the scope or amount of work
historically but not exclusivelv perfonned by Association bargaining unit
members (e.g. work shared with other City employees outside the Association
bargaining unit or contractors).
B. The City shall deliver written notice to the Association at least thirty (30) days before it
implements any action(s) described iIu;ubsection A. Within seven (7) davs after it
receives such notice, the Association may deliveLto the Citv's Chief People Officer a
written request to meet and discuss the effects of the City action(s). After the City's
receipt of sueh request. the parties will promptly meet ang undertake discussions. The
discussions will conclude no later than the thirtieth (30th) day following the Union's
receipt of the City's notice of the plarmed action(s), aulescribed above. Thereafter, the
City may implement the action(s) without further discussion as originally planned or as
modified as a result of such discussions. lfthe Association does not deliver timely notice
of its desire to meet and discuss the effects of the action(s) identified in the City's notice,
the City may proceed with the planned actiones).
C. The City retains its right to detennipe. the methods, means, and personnel by wbich
serviceS are carried out at its sole discretion in circumstances no covered by subsection A
above.
ARTICLE XIV -FULL UNDERSTANDING
Sectionl -Full Understanding. The Memorandum of Agreement contains the full and entire
understanding of the parties regarding the matters set forth herein.
Section 2 -Severability. If, at the conclusion of any applicable appeals, any provision of this
Memorandum of Agreement is ultimately held invalid and unenforceable by a decision of the
18
relevant Court or Administrative Agency of competent jurisdiction such holding shall apply only
to the provision(s) of this Memorandum of Agreement specified in the decision. Such decision
shall not invalidate any other portion of this Memorandum of Understanding, and the unaffected
provisions shall remain in full force and effect. The Parties agree tJ1at within ten (10) days after
the date of such decision, they shall meet and confer in an effort to negotiate a substitute for the
invalidated provision(s).
Section 3 -Good Faith. Ordinances, resolutions, rules and regulations enacted pursuant to this
Memorandum of Agreement that regulate matters within the scope of representation shall, to the
extent they are within the scope of representation, be administered in good faith.
Section 4 -Mid-Contract Negotiations. Subjects within the scope ofrepresentation that are not
covered by this Memorandum of Agreement remain subject to the duty to meet and confer in
good faith on timely notice and request. Neither party is obligated to meet and confer over
matters within the scope of representation covered by this Memorandum of Agreement, except
for purposes of negotiating over the terms of a successor to this Memorandum of Agreement.
Section 5 -Merit System. Merit System Rules and Regulations, during the term of this
Memorandum of Agreement, Management may propose certain changes in the City Merit
System Ru1es and Regulations. With regard to such changes which pertain to the representation
unit, the parties agree to review, and upon request, meet and conrer regarding the changes. (TA)
ARTICLE XVI DURATION
This Memorandum of Agreement shall become effective once the Memorandum of Agreement is
signed by the parties hereto and adopted by the City Council. This Memorandum of Agreement
shall remain in effect through December 31, 2014.
19
Exhibit A
Annualized Adjusted Control Points of Covered Utilities Classifications
(Effective On Date of Implementation Pursuant To Article XI, Section 1, subsection c)
Job
Code Classifications Grade
Codes
Mid - Point
(hourly rate)
Annual
Salary
1003 Assistant Director Utilities - Engineering 190 $84.05 $174,824.00
65 Assistant Director Utilities - Resource
Management 190 $84.05 $174,824.00
6 Assistant Director Utilities - Operations 190 $84.05 $174,824.00
1002 Assistant Director Utilities - Customer Support 230 $75.82 $157,705.60
129 Engineering Manager, Electric 231 $73.98 $153,878.40
120 Engineering Manager, Water, Gas & Wastewater 231 $73.98 $153,878.40
48 Manager, Utilities Telecommunications (Vacant) 250 $66.83 $139,006.40
185 Manager, Electric Operations 270 $69.73 $145,038.40
25 Senior Resource Planner 271 $64.84 $134,867.20
156 Manager, Utilities Operations WGW 290 $68.04 $141,523.20
188 Senior Electric Engineer 291 $65.66 $136,572.80
1011 Utilities Compliance Manager 290 $68.04 $141,523.20
179 Manager, Customer Service and Meter Reading 300 $60.70 $126,256.00
150 Manager, Utilities Marketing Services 300 $60.70 $126,256.00
13 Senior Business Analyst 340 $54.82 $114,025.60
27 Supervising Electrical Project Engineer 341 $59.54 $123,843.20
14 Senior Management Analyst 350 $53.42 $111,113.60
28 Supervising Project Engineer 360 $55.88 $116,230.40
84 Division Manager/Manager of Communications 380 $53.32 $110,905.60
114 Utilities Supervisor 680 $62.98 $130,998.40
76 Administrative Assistant 700 $37.59 $78,187.20
187 Senior Engineer 710 $64.06 $133,265.60
TBD Manager, Utilities Credit & Collection 300 $60.70 $126,256.00
TBD Supervisor, Inspection Services TBD $45.89 $95,465.30
[*Includes three percent increase]
City of Palo Alto to UMPAPA
Exhibit B
Annualized Adjusted Control Points of Covered Utilities Classifications
Effective December 1, 2013
Classifications Grade
Codes
Mid – Point*
(hourly rate)
Annual
Salary
1003 Assistant Director Utilities - Engineering 190 $88.07 $183,185.60
65 Assistant Director Utilities - Resource
Management 190 $88.07 $183,185.60
6 Assistant Director Utilities - Operations 210 $88.07 $183,185.60
1002 Assistant Director Utilities - Customer Support 230 $79.27 $164,881.60
129 Engineering Manager, Electric 231 $75.59 $157,227.20
120 Engineering Manager, Water, Gas &
Wastewater 231 $75.59 $157,227.20
48 Manager, Utilities Telecommunications
(Vacant) 250 $66.83 $139,006.40
185 Manager, Electric Operations 270 $74.02 $153,961.60
25 Senior Resource Planner 271 $67.52 $140,441.60
156 Manager, Utilities Operations WGW 290 $73.92 $153,753.60
188 Senior Electrical Engineer 291 $69.16 $143,852.80
1011 Utilities Compliance Manager 290 $73.92 $153,753.60
179 Manager, Customer Service and Meter Reading 300 $60.70 $126,256.00
150 Manager, Utilities Marketing Services 300 $60.70 $126,256.00
13 Senior Business Analyst 340 $54.82 $114,025.60
27 Supervising Electrical Project Engineer 341 $64.27 $133,681.60
14 Senior Management Analyst 350 $53.42 $111,113.60
28 Supervising Project Engineer 360 $59.68 $124,134.40
84 Division Manager/Manager of Communications 380 $57.14 $118,851.20
114 Utilities Supervisor 680 $64.14 $133,411.20
76 Administrative Assistant 700 $37.59 $78,187.20
187 Senior Engineer 710 $64.06 $133,244.80
TBD Manager, Utilities Credit & Collection 300 $60.70 $126,256.00
TBD Supervisor, Inspection Services TBD $45.89 $95,465.30
[*Includes three percent increase]