HomeMy WebLinkAboutStaff Report 14149
City of Palo Alto (ID # 14149)
City Council Staff Report
Meeting Date: 3/14/2022 Report Type: Consent Calendar
City of Palo Alto Page 1
Title: Item 5 Supplemental Report: Adoption of Side letters of Agreement
with Utilities Management and Professional Association of Palo Alto
(UMPAPA), International Association of Fire Fighters (IAFF), Fire Chiefs
Association (FCA), Palo Alto Peace Officers’ Association (POA), Palo Alto
Police Management Association (PMA), and Services Employees International
Union Local 521 (SEIU); and Updated Salary Schedules for Management and
Professional Employees, SEIU Hourly Unit, and Limited Hourly Employees.
From: City Manager
This memorandum is a supplemental report for agenda item 5 scheduled on the March
14, 2022 Council agenda. Subsequent to the release of the staff report, additional
agreements were reached with employee bargaining units. This supplemental item
recommends a re-titling of the item to notice all employee bargaining units, as well as
updated recommendation language for full inclusion of all adjustments. A second
supplemental item is expected to be released on Monday March 14th detailing all revised
salary schedules in accordance with these new agreements.
New Title and Additional Recommendation
Item 5: Adoption of Side letters of Agreement with Utilities Management and
Professional Association of Palo Alto "UMPAPA", International Association of
Fire Fighters IAFF "IAFF", Fire Chiefs Association "FCA", Palo Alto Peace
Officers’ Association (POA), Palo Alto Police Management Association (PMA),
and Services Employees International Union Local 521 (SEIU); and Updated
Salary Schedules for Management and Professional Employees, SEIU Hourly
Unit, and Limited Hourly Employees.
Staff recommends that the City Council also:
4) Adopt a Letter of Agreement extending the existing contract with Palo Alto Peace
Officers’ Association (POA); Palo Alto Police Management Association (PMA), and
Services Employees International Union Local 521 (SEIU).
Background
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On March 14, 2022, Staff is bringing Letter of Agreements for Council adoption
extending existing contracts with the following groups: Utilities Management and
Professional Association of Palo Alto (UMPAPA), International Association of Fire
Fighters Local 1319 (IAFF), and the Palo Alto Fire Chiefs Association (FCA) in Council
Report #14069.
Since publication of Council Report #14069 on March 3, 2022, Staff successfully
negotiated Letters of Agreement with POA, PMA and SEIU to extend their current
contracts.
The Palo Alto Peace Officers’ Association (POA) and Palo Alto Police Management
Association (PMA) represents both front line and supervisory police personnel. The POA
and PMA represent approximately 78 police personnel providing public safety services
to the community. POA and PMA are currently covered by Agreements that are set to
expire June 30, 2022.
The Service Employees International Union (SEIU) represents the City’s largest
bargaining unit with approximately 544 full-time positions. The positions support nearly
all areas of City services including Utilities, Public Works, Public Safety, Community
Services and Libraries. The current Memorandum of Agreement expired December 31,
2021.
Discussion
As outlined in Staff Report #14069 the City is addressing cost of living indicators and
regional economic factors through the actions brought to Council by recommending a
4% COLA.
POA and PMA agreed to defer their contractually negotiated general wage increase to
assist the City in navigating the sudden and unexpected impact of COVID-19 on the
City’s FY21 budget. Similar actions were not taken by surrounding Police agencies. POA
and PMA represented employees last received a salary increase, the deferred increase
noted above, July 1, 2021.
SEIU represented employees continued to provide critical services to the community
throughout the pandemic with much of their membership unable to work remotely due
to the nature of their work. SEIU’s contract expired on December 31, 2021. SEIU
represented employees last received a salary increase December 1, 2020.
Below is a high-level overview of the Letters of Agreement for each bargaining group:
(4) POA
a. 4% Cost of Living Adjustment effective April 1, 2022 paycheck
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b. New expiration date of December 31, 2022
(5) PMA
a. 4% Cost of Living Adjustment effective April 1, 2022 paycheck
b. New expiration date of December 31, 2022
(6) SEIU
a. 4% Cost of Living Adjustment effective April 1, 2022 paycheck
b. New expiration date of December 31, 2022
Revised salary schedules will be distributed at places on Monday, March 14, 2022 to
show the new ranges. In the event a Labor Group does not ratify the Letter of
Agreement by March 21, 2022, the increases will not take effect for the April 1, 2022
paycheck and an update to Council will be provided.
Resource Impact
Approval of the staff recommendations outlined in this Supplemental Report will result
in compensation adjustments beginning in the April 1, 2022 pay period for PAPOA, PMA,
and SEIU labor groups. The City will incur an additional 16 weeks of costs in the current
fiscal year that is expected to be absorbed through salary savings from vacant
positions.
In FY 2023, the 4% increase for PAPOA, PMA, and SEIU will result in approximately
$3.2 million in annual costs ($1.5 million in the General Fund).
In total, the FY 2023 additional costs for compensation adjustments for all groups
(MGMT, UMPAPA, IAFF, FCA, POA, PMA, SEIU) in Council Report #14069 and this
report will result in approximately $5.7 million in annual costs ($3.6 million in the
General Fund). This calculation is based on salary and variable benefit costs only; it
does not include any impacts to the unfunded accrued liability for pension costs.
The City's pension trust manager, CalPERS, issues an annual valuation in July/August
that determines employer contributions for the coming fiscal year. By practice, CalPERS
uses member data two years in arrears; therefore, the impact on pension costs are
expected to materialize in FY 2025/26.
Attachments:
• POA Letter of Agreement Extension 3.14.22
• SEIU Letter of Agreement Extension 3.14.22
• PMA Letter Of Agreement Extension 3.14.22
Proposed Letter of Agreement
City of Palo Alto and Palo Alto Peace Officers’ Association
March 14, 2022 – December 31, 2022
City of Palo Alto and Palo Alto Peace Officers’ Association
Proposed Letter of Agreement: March 14, 2022 – December 31, 2022
I. Introduction and MOA Term Extension
Both the City and the Palo Alto Peace Officers’ Association (Association) have a mutual interest in
extending the current Memorandum of Agreement (MOA) as set forth below. All other terms of the
existing MOA, as modified by the July 1, 2020 Letter of Agreement between the parties, shall continue in
effect through December 31, 2022.
II. Duration
The Parties agree to amend Section 48 (“Duration”) of the current MOA to extend the duration of the
contract, for an expiration of December 31, 2022.
III. Salary
The Parties agree to amend Section 7 (“Salary Provisions”) of the current MOA to include the following:
Effective the first full pay period including adoption of this side Letter of Agreement by City Council,
salary ranges of all represented classifications will be increased by four percent (4%).
For the Association: For the City:
Sgt. Ken Kratt Date City Manager Ed Shikada Date
Agent Chris Correia Date City Attorney Molly Stump Date
Sgt. Joel Hornung Date HR Director Rumi Portillo Date
Agt. Josh Salkeld Date Chief Robert Jonsen Date
Sgt. Alex Afanasiev Date ER Manager Nick Raisch Date
_________________________________
Peter A Hoffmann, Rains Lucia Stern Date Sr. HR Administrator Tori Anthony Date
152745\1251806
Proposed Letter of Agreement
City of Palo Alto and Service Employees International Union (SEIU) Local 521
January 1, 2022 – December 31, 2022
City of Palo Alto and Service Employees International Union (SEIU) Local 521
Proposed Letter of Agreement: January 1, 2022 – December 31, 2022
152745\1251806
I. Introduction and MOA Term Extension
Both the City and the Service Employees International Union (SEIU) Local 521 have a mutual interest in
extending the current Memorandum of Agreement (MOA) as set forth below. All other terms of the
existing MOA shall continue in effect through December 31, 2022.
II. Salary
The Parties agree to amend Appendix A of the current MOA to include the following:
Effective the pay period including the adoption of this Letter of Agreement by the City Council
(anticipated Council meeting March 14, 2022, PP07) and ratification by the Union, a four percent (4%)
cost of living increase will be applied to the salary ranges for all represented classes.
III. Term
The Parties agree to amend Article XXVII (“Term”) of the current MOA to extend the duration of the
contract, for an expiration of December 31, 2022.
For the Association: For the City:
Xochitl Lopez, Chief Negotiator Date Ed Shikada, City Manager Date
Chris Brickner, Chapter Chair Date Rumi Portillo, HR Director Date
Eidref Laxa, Worksite Organizer Date Molly Stump, City Attorney Date
_________________________________ _________________________________
Lynn Krug Date Nicholas Raisch, ER Manager Date
_________________________________
Ratu Serumalani Date Tori Anthony, Chief Negotiator Date
_________________________________
Martha Walters Date
Proposed Letter of Agreement
City of Palo Alto and Palo Alto Police Management Association
March 14, 2022 – December 31, 2022
City of Palo Alto and Palo Alto Police Management Association
Proposed Letter of Agreement: March 14, 2022 – December 31, 2022
Section I. Introduction and MOA Term Extension
Both the City and the Palo Alto Police Management Association (Association) have a mutual interest in
extending the current Memorandum of Agreement (MOA) as set forth below. All other terms of the
existing MOA, as modified by the July 1, 2020 Letter of Agreement between the parties, shall continue in
effect through December 31, 2022.
Section II. Duration
The Parties agree to amend Article XI Section 50 (“Duration”) of the current MOA to extend the duration
of the contract, for an expiration of December 31, 2022.
Section III. Salary
The Parties agree to amend Article II Section 3 (“Salary”) and Appendix A-1 of the current MOA to
include the following:
Effective the first full pay period including adoption of this Letter of Agreement by City Council, salary
ranges of all represented classifications will be increased by four percent (4%).
For the Association: For the City:
James Reifschneider, A. Captain Date Ed Shikada, City Manager Date
April Wagner, Captain Date Rumi Portillo, HR Director Date
Molly Stump, City Attorney Date
Robert Jonsen, Police Chief Date
Nicholas Raisch, ER Manager Date
Tori Anthony, SR HR Administrator Date