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HomeMy WebLinkAboutStaff Report 2502-4174CITY OF PALO ALTO CITY COUNCIL Regular Meeting Monday, March 17, 2025 Council Chambers & Hybrid 5:30 PM     Agenda Item     6.Adoption of Memorandum of Agreement with SEIU, Local 521 for a Term of Three Years Expiring December 31, 2027; CEQA Status - Not a Project 6 5 5 0 City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Human Resources Meeting Date: March 17, 2025 Report #:2502-4174 TITLE Adoption of Memorandum of Agreement with SEIU, Local 521 for a Term of Three Years Expiring December 31, 2027; CEQA Status - Not a Project RECOMMENDATION Staff recommends that the Council adopt a new Memorandum of Agreement (MOA) between the City of Palo Alto and the Service Employees International Union (SEIU), Local 521, effective from the first full pay period following Council adoption through December 31, 2027. BACKGROUND As a local public agency, the City of Palo Alto is required under California State law to meet and confer in good faith with recognized labor organizations to reach agreements regarding wages, hours, and other terms and conditions of employment. Negotiations between City representatives and SEIU representatives have concluded with a tentative agreement, pending Council approval. The SEIU unit is the City’s largest bargaining group, representing 605 full-time positions across departments including Utilities, Libraries, Public Works, Public Safety, Community Services, Planning, Information Technology and Administrative Services. The previous agreement expired on December 31, 2024. Formal negotiations began in September 2024, and after 19 sessions, a tentative agreement was reached on February 12, 2025. The SEIU membership voted to ratify the agreement on February 27, 2025. ANALYSIS The successful negotiation of this agreement advances the City’s long-term labor strategy, originally established by the Council in 2019. This agreement aligns with key strategic priorities and reinforces the three core pillars of our labor strategy: Recruitment, Retention, and Operational Efficiencies—ensuring a sustainable and competitive workforce model for the future. 6 5 5 0 Following what industry analysts coined the “Great Resignation,” a nationwide workforce shift triggered by the COVID-19 pandemic, the City experienced a decade-high vacancy rate of 17%. The previous labor agreement (January 2023 – December 2024) focused on competitive market positioning and increased flexibility in benefits—providing greater employee choice to enhance retention. As a result, vacancies have steadily declined toward 10% over the past contract term. positive workforce trajectory, reinforce a strong organizational culture, and uphold the City’s reputation as an employer of choice, this agreement continues competitive market placement while introducing additional operational efficiencies—such as streamlining recruitment processes to expedite hiring top talent. Additionally, the agreement supports the retention of institutional knowledge and advancement of skilled employees, strengthening the City’s long-term workforce sustainability. Key Terms of the Tentative Agreement: 1. Term: Three years (effective from the first full pay period following Council adoption through December 31, 2027). 2. General Wage Increases (COLAs): Year 1: 3% Year 2: 2.5% Year 3: 3% 3. Market-Based Adjustments: Applied selectively to classifications identified through market surveys to ensure competitive placement within the local job market. Market-based increases will be distributed over the first two years (50% in Year 1 and 50% in Year 2). 4. Flexible Compensation (Flex Comp): Year 1: Additional $150 per month in flexible compensation (in lieu of increased medical premium contributions). Year 2: Additional $50 per month in flexible compensation. 5. Medical Premium Contributions: Year 3: City contributions toward employee medical premiums will increase by approximately 4%. 6. One-Time Payment: A $300 discretionary one-time payment to all SEIU-covered classifications, payable in the first full pay period following Council adoption. 7. Streamlined Recruitment process Posting period reduced to 5-day minimum Expedited internal/external initial candidate review process 8. Additional Improvements Clean up of contract verbiage to ensure clarity and inclusive neutral language 6 5 5 0 Improved Long Term Disability coverage at a reduced cost to City and Employee Streamlined grievance procedure FISCAL/RESOURCE IMPACT Approval of the staff recommendations outlined in this report will result in cumulative costs of approximately $7.7 million in the General fund ($20.2 million in all funds) over the term of the SEIU agreement, which extends three years (from the first full pay period following Council adoption through December 31, 2027). Ongoing annual costs for these agreements once the contract term ends are estimated at $4.7 million in the General Fund ($12.5 million in all funds). The FY2025 Adopted Budget and FY 2026 – 2035 Long Range Financial Forecast (LRFF) include a level of modeling and reserves to plan for additional costs resulting from new labor agreements. The City’s forecast is in alignment with the terms of this recommended agreement. Staff acknowledges that this forecast reflects projected deficits; however, as noted earlier, has planned the use of reserves to ensure the City can support the near-term financial impacts of this contract during uncertain economic times. Ongoing, staff will continue to monitor economic uncertainty and work with the City Council to fund priority needs while funding costs associated with this agreement. For funds other than the General Fund, no specific reserve for these increases were allocated, however sufficient funding remains in these funds through either appropriated funds or reserves, including fund balance. These compensation adjustments will be included in the annual budget development process. STAKEHOLDER ENGAGEMENT City staff will post the Memorandum of Agreements and salary schedules on the City’s website after Council adoption for public access. In addition, Human Resources will communicate the changes to the terms of these agreements to support employee retention and highlight in job postings to attract new talent and fill vacancies. ENVIRONMENTAL REVIEW Council action on this item is not a project as defined by the California Environmental Quality Act (CEQA) because approval of this MOA is a continuing administrative activity. CEQA Guidelines section 15378(b)(2). ATTACHMENTS Attachment A: MOA between SEIU 521 and the City of Palo Alto – Redline copy Attachment B: MOA between SEIU 521 and the City of Palo Alto – Clean copy Attachment C: Salary Schedules APPROVED BY: Sandra Blanch, Human Resources Director CITY OF PALO ALTO Memorandum of Agreement City of Palo Alto and Service Employees International Union (SEIU) Local 521 January 1, 2025 – December 31, 2027 City of Palo Alto and SEIU Local 521 Page 1 of 88 TABLE OF CONTENTS PREAMBLE........................................................................................................................6 ARTICLE 1 – RECOGNITION..........................................................................................6 Section 1 - Recognition...................................................................................................6 Section 2 - Protection of Unit..........................................................................................6 ARTICLE 2 - NO DISCRIMINATION..............................................................................7 Section 1 – Discrimination..............................................................................................7 Section 2 - Right to Join the Union.................................................................................7 ARTICLE 3 – UNION MEMBERSHIP..............................................................................7 Section 1 - Notice............................................................................................................7 Section 2 – Payroll Deductions........................................................................................8 Section 3. Certification of Union Membership................................................................8 Section 4. Indemnification, Defense and Hold Harmless................................................9 Section 5 - Documentation..............................................................................................9 Section 5 - Bulletin Boards and Departmental Mail........................................................9 Section 6 - Access to Union Representatives................................................................10 Section 7 - Meeting Places............................................................................................10 Section 8 - Notification to the Union.............................................................................10 Section 9 - Union Logo..................................................................................................10 Section 10 - Public Notice.............................................................................................11 Section 11 - Use of Agency Reports..............................................................................11 Section 12 - Job Postings...............................................................................................11 Section 13 - Contracting Out.........................................................................................11 ARTICLE 4 – STEWARDS AND OFFICERS.................................................................11 Section 1 - Union Officers.............................................................................................11 Section 2 - Number of Stewards....................................................................................11 Section 3 - Release Time...............................................................................................12 Section 4 - Advance Notification Before Leaving Work Location...............................12 Section 5 – Release Time..............................................................................................12 Section 6 - Designated Union Space.............................................................................13 Section 7 - Union Officers and Release Time...............................................................13 ARTICLE 5 - REDUCTION IN FORCE..........................................................................13 Section 1 - Attrition.......................................................................................................13 City of Palo Alto and SEIU Local 521 Page 2 of 88 Section 2 - Advance Notice...........................................................................................13 Section 3 - Order of Layoff...........................................................................................13 Section 4 - Seniority/Bumping Rights...........................................................................14 Section 5 - Re-Employment List...................................................................................14 Section 6 - Sick Leave Balances....................................................................................14 Section 7 - Hourly Employees Performing Duties........................................................14 ARTICLE 6 - PERSONNEL ACTIONS...........................................................................15 Section 1 - Probation.....................................................................................................15 Section 2 - Personnel Evaluations.................................................................................15 Section 3 - Personnel Files............................................................................................15 Section 4 - Release of Information................................................................................16 Section 5 - Promotional Opportunities..........................................................................16 Section 6 - Rights...........................................................................................................18 Section 7 - Apprentice Positions....................................................................................18 Section 8 - Rotation.......................................................................................................19 ARTICLE 7 - PAY RATES AND PRACTICES..............................................................19 Section 1 - Salary...........................................................................................................19 Section 2 - Step Increases..............................................................................................19 Section 3 - Working Out of Classification....................................................................19 Section 4 - Classification Changes................................................................................20 Section 5 - Reclassification Requests............................................................................20 Section 6 - Assignment to a Lead Position....................................................................21 Section 7 - Total Compensation and Survey Database..................................................21 Section 8 - Direct Deposit..............................................................................................22 ARTICLE 8 - HOURS OF WORK, OVERTIME, PREMIUM PAY...............................22 Section 1 - Work Week and Work Day.........................................................................22 Section 2 - Overtime Work............................................................................................23 Section 3 - Work Shifts..................................................................................................25 Section 4 - City-Paid Meals...........................................................................................25 Section 5 - Break Periods..............................................................................................27 Section 6 - Clean-Up Time............................................................................................27 Section 7 - Standby Pay, Call-Out Pay..........................................................................27 Section 8 - Night Shift Premium...................................................................................27 City of Palo Alto and SEIU Local 521 Page 3 of 88 Section 9 - Bilingual Premium......................................................................................28 Section 10 - Communications Training Officer (CTO) Compensation.........................28 ARTICLE 9 - UNIFORMS AND TOOL ALLOWANCES..............................................28 Section 1 - Uniforms......................................................................................................28 Section 2 - Tool Allowance...........................................................................................32 Section 3 - Shoe Allowance...........................................................................................32 Section 4 – Certifications...............................................................................................32 Section 5 - Weather Protection......................................................................................37 ARTICLE 10 - HOLIDAYS..............................................................................................37 Section 1 - Fixed Holidays............................................................................................37 Section 2 - Pay for Fixed Holidays................................................................................38 Section 3 - Work on Fixed Holidays.............................................................................38 Section 4 - Variations in Work Week............................................................................38 Section 5 - Floating Days Off........................................................................................39 ARTICLE 11 - VACATIONS...........................................................................................39 Section 1 - Vacation Accruals.......................................................................................39 Section 2 - Holiday Falling During Vacation................................................................40 Section 3 - Illness During Vacation...............................................................................40 Section 4 - Accrued Vacation Pay for Deceased Employees........................................40 Section 5 - Effect of Extended Military Leave..............................................................40 Section 6 - Vacation at Termination..............................................................................41 Section 7 - Vacation Cash Out.......................................................................................41 ARTICLE 12 - LEAVE PROVISIONS............................................................................41 Section 1 - Sick Leave...................................................................................................41 Section 2 - Bereavement Leave.....................................................................................43 Section 3 - Military Leave.............................................................................................43 Section 4 - Leave Without Pay......................................................................................43 Section 5 - Jury Duty and Subpoenas............................................................................44 Section 6 - Time Off to Vote.........................................................................................44 Section 7 - Disapproval of Leave of Absence...............................................................44 Section 8 - Personal Business Leave Chargeable to Sick Leave...................................44 Section 9 - Return to Assignment..................................................................................44 ARTICLE 13 - WORKERS' COMPENSATION INSURANCE......................................45 City of Palo Alto and SEIU Local 521 Page 4 of 88 Section 1 - Industrial Temporary Disability..................................................................45 Section 2 - Vocational Rehabilitation Benefits for Permanently Disabled Employees.45 ARTICLE 14 - BENEFIT PROGRAMS...........................................................................45 Section 1 - Health Plan..................................................................................................45 Section 2 - Dental Plan..................................................................................................48 Section 3 - Vision Care..................................................................................................49 Section 4 - Life Insurance..............................................................................................49 Section 5 – Long Term Disability Insurance.................................................................49 Section 6 - Effective Date of Coverage for New Employees........................................49 Section 7 - Dual Coverage.............................................................................................49 Section 8 - Deferred Compensation...............................................................................50 Section 9 – Dependent Care Assistance Program and Medical Flexible Spending Accounts........................................................................................................................50 Section 10 - Training Programs......................................................................................50 ARTICLE 15 – RETIREMENT........................................................................................50 Section 1 - PERS Continuation......................................................................................50 Section 2 - Employee Share...........................................................................................51 Section 3. Employer Share............................................................................................52 ARTICLE 16 - COMMUTE INCENTIVES AND PARKING.........................................52 Section 1 - Commute Incentive.....................................................................................52 Section 2 – Parking Lot Security – Municipal Service Center......................................53 Section 3 – Bicycle Lockers and Motorcycle Parking...................................................53 ARTICLE 17 - PHYSICAL EXAMINATIONS...............................................................53 ARTICLE 18 – SAFETY..................................................................................................54 Section 1 - Health and Safety Provisions......................................................................54 Section 2 - Union Cooperation......................................................................................54 Section 3 - Safety Committees and Disputes.................................................................54 ARTICLE 19 - GRIEVANCE and APPEAL PROCEDURE...........................................55 Section 1 - General Provisions......................................................................................55 Section 2 – Definitions..................................................................................................55 Section 3 - Conduct of Grievance Procedure or Appeal of Disciplinary Action Procedure.......................................................................................................................55 Section 4 - Grievance and Appeal Procedure................................................................57 City of Palo Alto and SEIU Local 521 Page 5 of 88 ARTICLE 20 - UNSATISFACTORY WORK OR CONDUCT AND DISCIPLINARY ACTION............................................................................................................................59 City of Palo Alto and SEIU Local 521 Page 6 of 88 2023 - 2024 MEMORANDUM OF AGREEMENT City of Palo Alto and SEIU Local 521 PREAMBLE This Memorandum of Agreement (hereinafter “MOA” is entered into by the City of Palo Alto (hereinafter referred to as the “City”) and Local 521 Service Employees’ International Union, CTW (hereinafter referred to as the “Union”). For the purposes of this MOA “employee” shall mean an employee assigned to a classification within the SEIU General Employee bargaining unit. This MOA is pursuant and subject to Sections 3500-3510 of the Government Code of the State of California and Chapter 12 of the City of Palo Alto Merit Rules and Regulations. ARTICLE 1 – RECOGNITION Section 1 - Recognition. Pursuant to Sections 3500 - 3510 of the Government Code of the State of California and Chapter 12 of the City of Palo Alto Merit System Rules and Regulations, the City recognizes the Union as the exclusive representative of a representation unit consisting of all regular full and part-time employees in the classifications listed in Appendix A attached hereto. This unit, shall for purposes of identification, be titled the SEIU General Employees bargaining unit (hereinafter “General Unit”). Section 2 - Protection of Unit. No supervisor will perform the work of an employee in the General Unit provided that there is an employee available who regularly performs such work. This does not preclude a supervisor from performing work of a minor nature or during bona fide emergencies or on a standby status when willing and qualified unit employees do not live within a reasonable response time of their work location. Supervisory personnel shall be called out to perform unscheduled work only when SEIU General unit employees are unavailable to perform such work or in cases of bona fide emergencies as defined in Article VIII, Section 2. In cases of bona fide emergencies, SEIU General Unit employees shall be called out to complete the necessary work after the immediate emergency situation has been reasonably contained. City of Palo Alto and SEIU Local 521 Page 7 of 88 ARTICLE 2 - NO DISCRIMINATION Section 1 – Discrimination. The City of Palo Alto is committed to providing a work environment free from all forms of harassment and discrimination and agrees not to harass or discriminate against employees or applicants based on such characteristics such as race, ethnicity, color, religion, political affiliation, veteran status, military status, national origin, ancestry, disability, medical condition, marital status, age, pregnancy, sex, sexual orientation, gender identity and gender expression, or the perception that any person has such characteristic, and any other characteristic protected by federal or state law or City Ordinance. The City of Palo Alto will not harass or discriminate against employees from exercising their rights to organize in accordance with the Meyers-Milias Brown Act. Complaints of harassment or discrimination may be reported to any of the following individuals: •Immediate supervisor •Any supervisor or manager within or outside of the department •Department Head •Human Resources Director Complaints will be investigated in accordance with the City’s Policy and Procedures. Section 2 - Right to Join the Union. The City and the Union agree to protect the rights of all employees to exercise their free choice to join the Union and to abide by the express provisions of applicable State and local laws. ARTICLE 3 – UNION MEMBERSHIP Section 1 - Notice. a) When a person is hired in any of the covered job classifications, the City shall notify that person that the Union is the recognized bargaining representative for the employee and give the employee a packet of information provided by the Union, and will maintain a current copy of the Memorandum of Agreement on the City’s website. b) When a group new employee orientation is held for new employees of the bargaining unit, a union representative shall be permitted to make a presentation to such bargaining unit employees during the employee orientation for the purpose of explaining matters of City of Palo Alto and SEIU Local 521 Page 8 of 88 representation. The presentation shall not exceed 30 minutes. Management will not be present during the Union presentation. The City will provide release time to a steward or Union Officer for purposes of making the presentation. In addition, a non-City employee Union representative will also be given access to attend for the purposes of making the presentation. City of Palo Alto and SEIU Local 521 Page 9 of 88 Section 3. Certification of Union Membership. City of Palo Alto and SEIU Local 521 Page 10 of 88 membership meetings, results of elections and reports of minutes of Union meetings. Any other material must have prior approval of the Human Resources Office. Action on approval will be taken within 24 hours of submission. The Union may send email messages only for the purposes set forth above. The IT Department will maintain the SEIU list and keep it current. The Union access to email is based on the following conditions: 1) emails to the SEIU list will be copied to the Human Resource Director, or designee at distribution; 2) emails to the SEIU list will only be sent by the SEIU Chapter Chair, Vice Chair, Chief Steward (s) or Secretary, 3) a maximum of 52 emails may be sent per year and a maximum of 12 emails may be sent by the SEIU Chapter Secretary. City of Palo Alto and SEIU Local 521 Page 11 of 88 be consistent with Article 5 – Reduction in Force. c) Vacancies and Temporary Personnel. The City agrees to notify SEIU Local 521 in writing when any irregular, temporary, hourly, provisional, special or extra help employee who consistently performs work typical of the SEIU Local 521 bargaining unit exceeds 1,000 hours of work within a 18-month period. The City agrees to notify SEIU Local 521 in writing when any position covered by this agreement is left vacant for more than 60 days. The City will notify SEIU and, upon request, In coordination with the SEIU 521 Hourly representation Unit, the City and SEIU 521 may meet regarding the conversion of any long term and on-going hourly positions which the City proposes to convert may be converted to full time positions through the budget process. Section 9 - Union Logo. All materials and documents produced on Itek and metal plates, by the City print and reproduction shop, shall carry the Union label on the inside of covers or title pages in accordance with customary printing trades practices. Section 10 - Public Notice. The City shall make available to the Union, in a timely manner, copies of all City Council meeting agendas, minutes and schedule of meetings. These materials will be available online via the City’s website. Section 11 - Use of Agency Reports. Upon request, the City shall provide to the Union reports by department on the use of agency temporaries filling representation unit vacant positions, or doing work similar to that of representation unit classifications. Section 12 - Job Postings. The City shall incorporate the requirements of this Article when publicizing job announcements for classifications covered by this Memorandum of Agreement. Section 13 - Contracting Out. The City, through the labor management process, will keep the Union advised of the status of the budget process, including any formal budget proposal involving the contracting out of SEIU bargaining unit work traditionally performed by bargaining unit members at least thirty (30) days prior to the release of the City Manager’s proposed budget. City of Palo Alto and SEIU Local 521 Page 12 of 88 Prior to contracting out work, the City will attempt to fill vacant positions within the classification which normally performs the work to be contracted out; and attempt to use voluntary overtime to reduce or eliminate the need to contract out. The City will notify the Union in writing at least ninety (90) days prior to contracting work which has been traditionally performed by bargaining unit members. Within the ninety (90) day period of contracting out, both parties may offer alternatives to contracting out and meet and confer on the impact of such contracting out of a bargaining unit employee work. The City will notify the Union in writing when contracting out work which has been traditionally performed by bargaining unit workers, where such contracting out is expected to replace a laid off bargaining unit position that has been eliminated within ninety (90) days prior to the date of the planned contract work. When feasible, the City will provide such notice prior to the beginning date of the planned contract work. The City will meet with the Union upon request to discuss alternatives. This provision does not apply to the filling of temporary vacancies of twelve (12) months or less duration. The City will provide the Union with a biannual list by department of all contract workers or vendors who are contracted by the City who perform work for the City. The City will make a reasonable effort to identify the names of the vendors on the list and the nature of the work provided by each vendor. ARTICLE 4 – STEWARDS AND OFFICERS Section 1 - Union Officers. The Union agrees to notify the Director of Human Resources of those individuals designated as Union officers and stewards who receive and investigate grievances and represent employees before Management. Alternates may be designated to perform steward functions during the absences or unavailability of the steward. Section 2 - Number of Stewards. The number of stewards designated by the Union at a given time shall not exceed thirty- five (35). Section 3 - Release Time. It is agreed that, as long as there is prior notice as specified below to the Supervisor and the release of stewards will not unreasonably disrupt City operations, stewards shall be allowed reasonable release time away from their work duties, without loss of pay, to City of Palo Alto and SEIU Local 521 Page 13 of 88 represent a unit employee or employees on grievances or matters within the scope of representation, including: City of Palo Alto and SEIU Local 521 Page 14 of 88 Union stewards may utilize space in assigned desks for storage of Union materials. In the event stewards are not assigned desks the City will provide locker or other mutually agreeable space for storage of Union materials. ARTICLE 5 - REDUCTION IN FORCE City of Palo Alto and SEIU Local 521 Page 15 of 88 requisitioned and for which the employees are qualified for a period beginning with notification and ending sixty (60) days following the reduction in force. Employees transferred or reclassified under this section will be assigned to the step in the new classification salary range closest to the employee's salary range at the time of reclassification. Employees laid off pursuant to this section shall receive the balance of all regular City compensation owed and severance pay equal to one month’s salary at the employee’s final rate of pay at termination. This does not include any amounts payable under Article V, Section 6, or PERS contribution refunds, if any. City of Palo Alto and SEIU Local 521 Page 16 of 88 Section 6 - Sick Leave Balances. ARTICLE 6 - PERSONNEL ACTIONS City of Palo Alto and SEIU Local 521 Page 17 of 88 Section 2 - Personnel Evaluations. City of Palo Alto and SEIU Local 521 Page 18 of 88 example, if the City recruits for a Planner but ends up underfilling the position with an Associate Planner, the incumbent may be reclassified to a Planner once they qualify for that classification. Posting. Promotional opportunities for classifications within the representation unit will be posted for at least one (1) week fourteen (14) calendar days prior to selection. Outside recruitment may be used for promotional openings and may begin at the time of posting, or any time thereafter. If, however, there are three or more qualified internal candidates within the department where the vacancy occurs, and those candidates successfully complete the selection process, outside candidates will not be considered. Internal Candidate Eligibility. All non-probationary representation unit employees are eligible to apply for posted promotional opportunities, except that Management may waive this requirement for all probationary employees within the department where the promotional opportunity occurs. Selection. The selection procedure for each promotional opening will be determined and administered by the Human Resources Department in consultation with the requisitioning department. Selection procedure and job description information will be available at the Human Resources Office and on the City’s career website at the time of posting. Efforts will be made to standardize tests and procedures where standardization is feasible and appropriate. Any tests used shall be reasonably predictive of success in the classification, and tests not be biased with respect to race, sex, sexual orientation, religion, creed, political affiliation, color, national origin, ancestry, or age. Internal candidates who successfully complete the screening and testing process shall be granted an interview. The granting of an interview does not guarantee that the internal candidate will be selected for the position. Selection procedures may include any or all of the following phases: Application. Both inside and outside candidates must complete a City of Palo Alto application form specified by the Human Resources Department. Applications must be submitted to the Human Resources Office. City of Palo Alto and SEIU Local 521 Page 19 of 88 2)Screening. Applications will be screened by the Human Resources Department and, in some circumstances, a manager from the Department seeking to fill a position to ascertain whether candidates meet minimum requirements as outlined in the job description. Internal candidates deemed not to meet minimum requirements may submit additional qualification information writing within three working days of notification of requirement deficiency. 3)Performance Testing. Performance tests, such as typing, machinery or vehicle operation, skills demonstration, physical agility, etc., will be qualifying. Pass-fail points will be announced in advance for qualifying tests. If requested in writing prior to the test, performance test may be witnessed by Union steward. 4)Written Tests. Written achievement or aptitude tests will be qualifying. Pass-fail points will be announced in advance for qualifying tests. 5)Interviews, Appraisals. Interviews may be conducted individually or by interview boards and will be qualifying. Interview boards shall be composed of qualified and unbiased people. Where interview boards are used, Management will include at least one bargaining unit employee on each board. If individual interview or an interview board is used, a majority of the individuals or board members must recommend a candidate in order for the candidate to qualify for appointment. Performance appraisals written by candidates' supervisors may be used as indicated in the selection procedure. d)Recommended Candidates. Candidates who successfully complete all phases of the selection procedure will be recommended to the appointing authority. e)Seniority. Seniority, for purposes of this Article, will be based on current service hire date of record in a regular classification with no adjustment for leaves of absence. Seniority ties will be determined in favor of the employee with the lowest employee number last four digits. Exceptions to this subsection may be established by mutual agreement on a departmental or divisional basis. Such exceptions are listed in Appendix E. f)Appointment. The appointing authority will make appointments from among those recommended candidates who are most qualified as determined by objective review of selection procedure results and background materials. Where appointments are made from only internal candidates who are equally qualified as determined by objective review of selection procedure results and past performance, seniority will be the determining factor in promotional appointments. City of Palo Alto and SEIU Local 521 Page 20 of 88 g)Violations. Any violation of this Article may be appealed to the Human Resources Director in Step III of the grievance procedure. Eligibility List (Pilot program). Human Resources may maintain an eligibility list of those applicants who interviewed and were ranked within the top three (3). Candidates on an eligibility list will be considered for any vacant position in the classification for which the list exists, without the need to submit a new application under section (c)(1) of this provision. This pilot program will sunset with the expiration of the MOA, but not later than December 31, 2024, unless extended by written agreement of the parties. ARTICLE 7 - PAY RATES AND PRACTICES City of Palo Alto and SEIU Local 521 Page 21 of 88 CAFR), with total rates and ranges as set forth in Appendix A (Salary Schedule) attached hereto. City of Palo Alto and SEIU Local 521 Page 22 of 88 Section 4 - Classification Changes. City of Palo Alto and SEIU Local 521 Page 23 of 88 days after the initial hearing date. The same time line will be observed for disputes over the accuracy of the revised classification description. The parties will notify the arbitrator of this deadline at the time of the arbitrator’s selection. In reaching a decision on wage range and steps under Section 4(a) or 5(b) above, the arbitrator shall base his or her their award on the factors traditionally taken into account in the establishment of compensation. When deciding a dispute over the accuracy of the revised classification description under section 5(b) above, the arbitrator shall identify the modifications of the pre-existing classification necessary to accurately reflect the permanent changes, if any, that have been implemented. Upon receipt of the arbitrator’s award, the City shall implement the revised classification and wage range or steps as provided in the award except as provided under subsection 5(c) of this section below. Notwithstanding an arbitrator’s award pursuant to any appeal process, the City retains the right to forego implementing the changes and the proposed changes shall revert to the status quo as it existed before those changes in duties occurred or were proposed. d) An employee may submit a request for reclassification for the same classification no more than once every twenty-four (24) months. Section 6 - Assignment to a Lead or Senior Position. All vacancies in lead positions shall be filled in accordance with Article VI, Section 5. The pay range for the lead position shall be a minimum of seven (7%) percent above the pay step of the highest paid employee on the crew. All vacancies in senior positions shall be filled in accordance with Article 6, Section 5. The top step of the pay range for the senior position shall be a minimum of seven (7%) above the top step of the pay range for the position below it in the series. Departmental exceptions for filling lead positions on a rotational basis for training and development purposes may be arranged by mutual agreement of the Union and individual City departments. Section 7 - Total Compensation and Survey Database. Management and the Union have agreed to a compensation survey database structure which identifies specific benchmark classifications for job families, classifications within the job families of each benchmark classification, survey agencies and survey classification matches. Survey Cities include: Alameda Hayward San Mateo Berkeley Mountain View Santa Clara Daly City Redwood City S. San Francisco Fremont San Jose Sunnyvale City of Palo Alto and SEIU Local 521 Page 24 of 88 If the employer list will not permit the production of a survey report that includes data from at least four (4) employers that employ employees in a classification comparable to the classification surveyed by the City, neither party is precluded from bringing forward information on other employers in the relevant recruitment area that employ workers in a comparable classification so that data from at least five (5) surveyed employers will be included in the study, if feasible. Such employer may include any public or private employer. The database is intended to provide one source of information concerning how the compensation paid to employees in bargaining unit job classifications compares to that paid by other employers. The City will update the survey database and send the Union a copy no later than August 31, 2024. This survey will be considered in connection with special adjustment proposals in successor agreement negotiations. By agreeing to a survey database, neither the Union nor Management the City is under obligation to propose or agree to special adjustments. City will agree to review the market studies (classification matches and comparable jurisdictions) for the classifications of Park Ranger and Public Safety Dispatcher II and will meet with SEIU beginning in February 2023. Changes will be by mutual agreement only and will be implemented for the Fiscal Year following City Council adoption (e.g., adoption in May 2023 would be implemented for FY 2023-24). Section 8 - Direct Deposit The City shall directly deposit all paychecks for Unit employees in a financial institution of the employee’s choice that accepts direct deposits and does not charge the City a fee(s) for direct deposit service. In the event that the employee fails to designate a financial institution for direct deposit of his or her payroll check, the employee shall pick up the check personally in the City’s Administrative Services Department office on the next business day following payday at a pickup time designated by Administrative Services. ARTICLE 8 - HOURS OF WORK, OVERTIME, PREMIUM PAY Section 1 - Work Week and Work Day. The standard workday for regular full time employees shall be one of the following: •Eight hours to be worked within a maximum of nine hours (five-day work week); or •Ten hours to be worked within a maximum of eleven hours (four-day work week); or City of Palo Alto and SEIU Local 521 Page 25 of 88 •Nine hours to be worked within a maximum of ten hours for four days with a fifth day of four hours (four and one-half day work week); or •Within a fourteen-day period, nine hours to be worked within a maximum of ten hours for eight days and eight hours to be worked within a maximum of nine hours for one day, with the work week scheduled to begin so that forty hours are worked within each seven days of the fourteen-day period (9/80 plan, with forty-hour work weeks), or any other schedule that results in a 40-hour work week, or fits within the parameters of an FLSA 2080 Plan. The "9/80 plan" may not be used in any application that requires entitlement to FLSA overtime for working the regular work week. With the exception of the 9/80 plan as described above and flexible scheduling for Police Dispatchers, tThe standard work week for regular full time employees shall be forty (40) hours to be worked within five seven consecutive days, including the standard 5/8 work schedule, the 4/10 work schedule, the 9/80 work schedule, and flexible staffing for Dispatchers. Additional exceptions to the above are listed in Appendix C. The Union shall be notified of any further exceptions to this section in accordance with Article 3 III, Section 8. For purposes of the Fair Labor Standards Act (FLSA), the standard workweek shall begin at midnight on Sunday and end at 11:59pm on the following Saturday. However, the workweek of employees on the 9/80 schedule shall begin and end at the mid-point of the employee’s 8-hour workday, and the workweek for Dispatchers shall begin and end on the day designated by departmental policy. The City and the Union agree that the availability of alternate/flexible work schedules is a valuable benefit in that they promote job satisfaction while also reducing traffic congestion and air pollution. Employees may utilize flexible arrangements to attend trainings, seminars, meetings, or for other mutually agreed upon situations. Any such change to work hours shall be approved by the supervisor in advance and should not result in overtime. During the term of this agreement, employees, subject to the conditions of their job assignment, may propose an alternate work schedule as listed under this Section. Such proposals must be made to the department head through the immediate supervisor. Serious consideration will be given to the feasibility and productivity of such proposals, however Management retains the right to determine scheduling needs. Section 2 - Overtime Work. a) Overtime work for all unit employees shall be defined as any time worked beyond the standard workday or beyond the standard work week. City of Palo Alto and SEIU Local 521 Page 26 of 88 All time for which pay is received shall count as hours actually worked for the computation of regular overtime pay; however, non-productive time will not be included in computation of any additional FLSA premiums. b) Emergency overtime is defined as unplanned overtime work arising out of situations involving real loss of service or property or personal danger. Emergency overtime does not include: i. overtime work resulting from personnel replacement for purposes of maintaining scheduled staffing; ii. overtime work which is planned in advance; iii. overtime work resulting from being held over for up to four hours to finish work performed during the regular shift. c) Compensation to employees working overtime will be in the form of additional pay at the rate of one and one-half times the employee's applicable hourly salary with the exception that an employee may request and, upon approval, be granted compensatory time off at the rate of one and one-half hours for each hour of overtime worked, subject to the limitations of applicable state and federal laws. Two times the employees’ applicable hourly salary will be paid for billable customer convenience overtime and emergency overtime as defined in subsection (b) above. Employees may elect at any time to cash out compensatory time off hours or roll into vacation time, up to applicable maximums. These elections must be made via the Compensatory Time Cashout Form submitted to payroll and will take place the following pay period, if received by the form’s due date. Any compensatory time off hours not taken, allocated, or cashed out will be automatically cashed out once a year during the last pay period in December first pay period in April. d) When an employee is required to work 6 or more hours of overtime (either emergency or pre-arranged) during the 16 hour period immediately preceding the beginning of the employee’s regular shift on a workday, the employee shall be entitled to an nine (9) hour rest period before returning to work. When an employee is called back to work and works a minimum of three (3) hours of emergency overtime during the period at least eight (8) hours but not less than two (2) hours before the start of their regular work shift (e.g., for an employee with an 7:00am start time between the hours of 11:00pm and 5:00am), the employee shall be entitled to a six (6) hour rest period commencing at the time of release from duty. If the rest period overlaps the employee’s regular work shift in City of Palo Alto and SEIU Local 521 Page 27 of 88 whole or in part, they will be paid at the straight-time rate for the time that falls within their regular work shift. The City may require an employee to work during their designated rest period. However, in that event, the employee will be paid for the rest period plus straight time for the hours actually worked during the rest period (i.e., double time for hours worked during the rest period). If the rest period overlaps into the second half of the work day, the employee may be given (with supervisor approval) the remaining time off (up to a maximum of 3 hours) at the straight time rate of pay. Any portion of the rest period falling within the employee’s work shift will be considered as hours worked and compensated at the straight time rate. e) If non-emergency overtime is canceled without at least 40 clock hours’ notice, the City shall pay the affected employees two (2) hours' pay at time and one-half. f) Employees working overtime who are too fatigued to continue or return to work, for safety reasons will be released from duty without compensation. g) Part-time Employees. Authorized hours worked by an employee in a budgeted, part-time position in excess of the scheduled hours of work of the position shall be compensated at the employee’s applicable hourly rate up to the maximum of non-overtime hours in the work period applicable to the employee. If a part-time employee works more than 80 hours in a pay period then overtime will be paid in accordance with the FLSA. Section 3 - Work Shifts. All employees shall be assigned to work shifts with scheduled starting and quitting times. Should conditions necessitate a change in starting and quitting times, the Union will be notified ten (10) working days in advance and permitted to discuss such changes with the City. This, however, shall not preclude the City's right to effect schedule changes dictated by operational necessity. This section does not apply to overtime scheduling. Section 4 - City-Paid Meals. In accordance with City policy, the City of Palo Alto bases its meal reimbursement limits on the U.S. General Services Administration (GSA) per diem rates. Those rates are adjusted every October. For overnight travel per diem rates, the City reimburses based on the rates applicable to the destination of travel, as provided by the GSA at http://www.gsa.gov/portal/category/100120. For non-travel meals, the City will City of Palo Alto and SEIU Local 521 Page 28 of 88 reimburse up the maximum GSA rates for the Palo Alto area. Receipts are required to back-up these expenses. For purposes of this section, emergency overtime is defined as unplanned overtime arising out of situations involving real loss of service or property or personal danger. The City agrees to reimburse for meals based on GSA maximum rates for the Palo Alto Area and will provide meals in the following emergency overtime situations: City of Palo Alto and SEIU Local 521 Page 29 of 88 not provided an additional one hour of overtime compensation in lieu of such meal. This hour will not be considered as time worked or part of the rest period, but will be applied to qualify for the rest period. e) Emergency overtime meals for Public Safety Dispatchers. The Police Department will provide meals to employees in an emergency overtime situation involving real or potential loss of service or personal danger. 1) When an employee is called back and is on duty for a period of three consecutive hours, and thereafter at intervals of five hours, but not more than six hours, until the continuous overtime assignment ends. 2) When an employee is held over on duty so that his/her their overtime assignment extends two hours after shift end, and thereafter at intervals of five hours, but not more than six hours, until the continuous overtime assignment ends. 3) When an employee is called out two hours or more before a regularly scheduled shift. The employee will be entitled to two meals, the second meal will be consumed on the employee's own time. No in-lieu pay will be made for meals not taken. 4) When recalled two hours or less after the end of a regular shift, unless assigned to standby. f) Non-emergency overtime meals for Public Safety Dispatchers. The Police Department will provide meals to employees in non-emergency situations where the assignment extends more than two hours after the regular or overtime shift end and at intervals of five hours thereafter. If the City is unable to provide a meal, the City agrees to reimburse for meals based on GSA maximum rates for the Palo Alto Area. This policy only applies when an employee is held over, either voluntary or mandated, on duty beyond a scheduled regular or overtime shift. Section 5 - Break Periods. All employees shall be granted a break period or coffee break limited to 15 minutes during each four hours of work. Departments may make reasonable rules concerning break period scheduling. Break periods not taken shall be waived. City of Palo Alto and SEIU Local 521 Page 30 of 88 Section 6 - Clean-Up Time. Standby Compensation Minimum Call-Out Pay Tthe two-hour minimum does not shall apply to employees called out to work while earning pay for being in a standby status unless called out to perform billable customer convenience work in which case the two-hour minimum will apply. City of Palo Alto and SEIU Local 521 Page 31 of 88 Section 8 - Night Shift Premium. Upon approval by the Human Resources Director, the City is required to arrange for language testing within four (4) months of the approval. Employees receiving bilingual pay must provide interpreter services upon request. City of Palo Alto and SEIU Local 521 Page 32 of 88 Section 10 - Communications Training Officer (CTO) Compensation. ARTICLE 9 - UNIFORMS AND TOOL ALLOWANCES City of Palo Alto and SEIU Local 521 Page 33 of 88 Golf Course Equipment Mechanic Golf Course Maintenance Person Heavy Equipment Operator - Lead Heavy Equipment Operator Industrial Waste Inspector Industrial Waste Investigator Instrumentation Electrician Laboratory Technician, Water Quality Control Line Person/Cable Splicer Line Person/Cable Splicer - Lead Mail Services Specialist Maintenance Mechanic/Maintenance Mechanic, Water Quality Control Mechanical Unit Repairer Meter Reader Meter Reader – Lead Mobile Service Technician Motor Equipment Mechanic - Lead Motor Equipment Mechanic Offset Equipment Operator - Lead Offset Equipment Operator Park Maintenance Assistant Community Services Officer Park Maintenance Person Park Crew - Lead Park Maintenance - Lead Park Ranger Parks & Open Space Assistant Police Records Specialist Refuse Disposal Attendant Senior Chemist Senior Industrial Waste Inspector Senior Industrial Waste Investigator Senior Instrumentation Technician Senior Operator, Water Quality Control Senior Mechanic, Water Quality Control Senior Park Ranger Sprinkler System Repairer Street Maintenance Assistant Storekeeper Storekeeper-Lead Street Sweeper Operator Traffic Control Maintainer - Lead Traffic Control Maintainer II City of Palo Alto and SEIU Local 521 Page 34 of 88 Traffic Control Maintainer I Tree Trimmer-Line Clearer Tree Maintenance Assistant Tree Trimmer-Line Clearer Assistant Tree Trimmer-Line Clearer - Lead Tree Maintenance Person Truck Driver Utilities Compliance Technician Utility Field Service Representative Utility Installer/Repairer Utility Installer/Repairer Assistant Utility Installer/Repairer – Lead Utility Locator Water Meter Cross Connection Technician Water System Operator - Lead Water System Operator Water System Operator I Water System Operator II Water Quality Control Plant Operator b) Coveralls will be made available for occasional use as needed to protect clothing for the following classifications and any positions necessary or required as determined by management. Building Inspector Building Inspector Specialist Building Service Person - Lead Cable Splicer Assistant Chief Electric Underground Inspector Electrical Assistant Electrician Facilities Mechanic/Painter Heavy Equipment Operator Lineperson/Cable Splicer Park Ranger Senior Park Ranger Utility Field Service Representative Sprinkler System Repairer Utility Installer Assistant Utility Installer/Repairer Utility Installer/Repairer - Lead City of Palo Alto and SEIU Local 521 Page 35 of 88 c) Employees required to wear uniforms shall be provided suitable change rooms and lockers where presently provided. d) Employee clothing seriously damaged or destroyed in conjunction with an industrial injury will be reasonably replaced by the City. Any other claims alleging City liability may be filed with the City Attorney. e) Except in the Utilities Division, the City will make available, as an alternative to the shirts currently provided under Section 1(a), six (6) cotton polo shirts. Employees in the Utilities Division will be provided with six (6) long-sleeve shirts and two polo shirts. Employees will be responsible for laundering the shirts. Damaged or otherwise unwearable shirts will be returned to the employee’s supervisor and replaced by the City. f) Employees are responsible for laundering Park Ranger and Senior Park Ranger uniforms. g) The City will meet and confer with the Union regarding any mandated changes to uniforms. h) In accordance with California Code of Regulations (C.C.R.) section 571(a) the estimated value of City provided uniforms is $21.28 per pay period. Section 2 - Tool Allowance. a) Mechanics in Equipment Maintenance, Park Maintenance Lead, Motorized Equipment Mechanic and Mobile Service Technician shall be paid a tool allowance of $1000 annually upon verification of purchase by the employee. b) Parties will meet and confer to determine if additional classifications require tool allowance. Section 3 - Shoe Allowance. a) Safety Shoes. The City will pay the vendor or reimburse full-time employees up to $400 per fiscal year for the cost of job-related safety shoes upon verification of such purchase by the employee. b) Walking Shoes. The City will reimburse employees 75% of the cost of job-related walking shoes for any positions necessary or required as determined by management including Meter Reader and Meter Reader-Lead, in an amount not to exceed $300.00 per year. A walking shoe is a durable work shoe/boot (non City of Palo Alto and SEIU Local 521 Page 36 of 88 steel-toed), is ankle supporting; oil, gas and slip resistant; waterproof or water resistant; lightweight and durable; and also provides hard surface cushioning. c) Additional Boot Reimbursements. Employees in the Park Ranger Classification will receive an additional $200 per year to account for the additional cost of wildland fire boots for a total Safety Shoe reimbursement of $600. Employees in the Lineperson series will receive an additional $200 per year to account for the additional cost of climbing boots for a total Safety Shoe reimbursement of $600. Section 4 – Certifications. The parties agree to retain the current list of required certifications below. Employees who are required to maintain commercial driver's licenses shall have costs for medical examinations paid by: a) Completing an examination through their PEMHCA provider. After benefits have been paid by the PEMHCA provider, upon presentation of proper documentation, the City will reimburse any remaining costs, or b) Completing an examination at the Workforce Medical clinic or other City designated clinic. Employees may use paid leave for attendance at scheduled medical examinations. Employees shall be permitted to use up to two hours of regular City-paid time for attendance at biannual medical examinations. The scheduling of such time shall be preauthorized by the employee’s supervisor. c) The City will pay special registration and/or certification fees which are required by Management. During the term of this agreement, the City and the Union may, by mutual agreement, review, add or delete classifications and/or required certifications listed below: Classification Requirement Facilities Technician Aquatics Facility Operator Certificate Building Inspector/ Buildg Inspection Specialist Certificate as stated in job description Cathodic Technician Corrosion Technician by the National Assoc. of Corrosion Engineers Engineer Professional Professional Engineer Cert. (for step E) Equip Maint Serv Pers. Forklift Operator Cert. (OSHA-approved) City of Palo Alto and SEIU Local 521 Page 37 of 88 Golf Course Maint Pers. Qualified Applicators' License Heavy Equipment Operator Crane Operation Certificate (Utilities and Electric) Indust. Waste Inspector Backflow Prevention Device Tester Inspector Field Services, Utilities D1 (DOH) Hired before July 1, 2012 Installer/Repairer Series D1 (DOH) Maintenance Mechanic Crane Operator Certification (Water Quality) Mech. Unit Repairer Welding Certificate Motor Equip Mechanic and Lead EMS, ASE Planner, Associate Planner AICP Senior Planner Public Safety Dispatcher POST Basic Dispatcher EMD Public Safety Dispatcher, Lead POST Basic Dispatcher POST Supervision EMD Senior Operator, WQC Grade III Wastewater Treatment Plant Operator Certification Surveyor, PW Licensed Land Surveyor Tree Trimmer/Line Clearer Certified Tree Worker and/or Qualified Line Clearance/Tree Trimmer Cert. (OSHA-approved) Tree Trimmer/Line Clearer-Lead Certified Arborist City of Palo Alto and SEIU Local 521 Page 38 of 88 Utilities Install/Rep series Polyethylene Fusing Cert. Gas Operator Certification (DOT) Veterinarian Technician Animal Health Tech. Certification Water System Operator I Grade DI – Water Distribution Operator Water System Operator II Grade DII – Water Distribution Operator & Grade TII – Water Treatment Operator Senior, Water System Operator Grade DIII – Water Distribution Operator & Grade TIII Water Treatment Operator WQC Plant Operator I Grade I Wastewater Treatment Operator Certification. WQC Plant Operator II Grade II Wastewater Treatment Operator Certification WQC Plant Operator Trainee Grade I Wastewater Treatment Operator Certification Water Meter Cross- Connection Technician Backflow Prevention Tester Certification d) The City will pay for the Department of Motor Vehicles (DMV) licensing fees for all employees required to maintain a Commercial Driver's License in accordance with the California Vehicle Code and applicable laws prescribed by the Department of Transportation. e) Effective the first full pay period following the later of January 1 or the adoption of the MOA, and upon verification that the certification is held: City of Palo Alto and SEIU Local 521 Page 39 of 88 Classification Certification(s) Amount Utility Project Coordinator* WGW Utilities Field Inspector* Backflow Tester and Specialist $4,000, and upon recertification Heavy Equipment Operator Electric Heavy Equip Operator Maintenance Mechanic Lineperson/Cable Splicer Lineperson/Cable Splicer Lead Crane Operator (j)$3,000 Annually Associate Engineer Assistant Engineer Associate Power Engineer Assistant Power Engineer Engineer Tech I Engineer Tech II Engineer Tech III Professional Engineer $4,000 Building Inspector Specialist Building Inspector Senior Building Inspector Each certification above minimum to a max of four (4) (g) $50 Monthly Water System Operator II Senior Water System Operator D5 $5000 Annually Park Ranger Senior Park Ranger Emergency Medical Tech (EMT) $3,000, and upon recertification Utility Installer/Repairer Utility Installer/Repairer Lead Maintenance Mechanic - Welding Pipeline Welding Assignment (f) 4% Pay Premium *When assigned to WGW Operations City of Palo Alto and SEIU Local 521 Page 40 of 88 Classification Certification(s) Amount Water Quality Control Operator I Water Quality Control Operator II Sr Water Quality Control Op Plant Mechanic (WQC) Electrician (WQC) Chemist Senior Chemist Water System Operator I Water System Operator II Senior Water System Operator Laboratory Technician WQC Inspector Field Services** One (1) certification above what is required in the Job Description (h) 1% of Annual Salary as a lump sum **When assigned to Utilities Installer/Repairer Series f)Pipeline Welding Assignment. The City provided a 4% premium in base compensation to the Utility Installer-Repairer and the Installer-Repairer Lead positions in 2006 that met DOT certification requirements and are, or were, assigned these duties. The Utility Installer-Repairer and Utility Installer- Repairer Lead positions that fail to maintain current certifications will not receive a 4% premium on their base pay. Positions assigned these duties and designated by Management to receive this premium will not exceed five (5) Utility Installer/Repairer(s) and Installer/Repairer Lead(s). If the certification is required in the job description, certification must be maintained. In accordance with their job description, Maintenance Mechanics that are assigned to Water Gas Wastewater must maintain all required certifications and shall receive 4% premium to their base pay for pipeline welding. g)Building Inspector and Building Inspector Specialists. Upon successful completion of probationary requirements, the City will pay Building Inspectors and Building Inspector Specialists a one (1) percent of base salary one-time payment for a certification above what is required. Employees may request one payment per year to a maximum of two payments in career. Payments will not exceed a maximum of one percent per year or two payments in a career. The Building Inspector and Building Inspector Specialist Job Descriptions specify current requirements and the Union and City will agree on a list of appropriate City of Palo Alto and SEIU Local 521 Page 41 of 88 certifications eligible for the premium. Premiums will not be paid if certification is not maintained. Building Inspector Certifications: Employees in the classifications of Building Inspector, Building Inspector Specialist and Sr. Building Inspector may receive $50 per month per certification above the minimum requirement of the classification up to a maximum of 4 additional certifications (maximum $200/month or $2400 annually). Premiums will not be paid if certification is not maintained or if employee is not employed in a covered classification. •International Code Counsel (ICC) o Residential Building Inspector o Residential Mechanical o Residential Plumbing o Residential Electrical o Commercial Building Inspector o Commercial Mechanical o Commercial Electrical o Commercial Plumbing o CALGreen Building Inspector/Plans Examiner o Accessibility Inspector/Plans Examiner •Department of State Architect (DSA): Certified Access Specialist CASp •US Green Building Council LEED BD+C •or equivalent as defined by the Chief Building Official h)Water and Wastewater System Operator Certification. Employees classified in the following positions: Water Quality Control Plant Operators I and II, Senior Operator Water Quality Control, Plant Mechanics and Electricians assigned to Water Quality Control, Laboratory Technician Water Quality Control, Chemist, Senior Chemist, Water System Operators I and II, Senior Water Systems Operator, Inspector, Field Services assigned to Utilities and Installer Repairer Job Series may be eligible to receive a 1% base pay premium for certifications required by the Department of Health, California Water Environment Association and/or the State Water Resources Control Board. Employees within these job classifications that have successfully completed probationary requirements may request an annual payment of one (1) percent for one (1) certification that is above those listed in their job description. An employee who qualifies for this payment shall be paid 1% of the employee’s annual base salary once per year. The employee shall be responsible for providing the City with written documentation that the employee has obtained and is maintaining the qualifying certification on an annual basis. Premiums will not be paid if City of Palo Alto and SEIU Local 521 Page 42 of 88 certification is not maintained. Eligible employees should verify certification will qualify for the premium before attempting certification. The Union and the City will update the job descriptions to reflect newly required certifications with no further adjustments to base salary. Payments will not exceed a maximum of one (1%) percent per year, and will take effect in the pay period following the verification of certification. All costs for obtaining certifications above what the job description requires will be the responsibility of the employee and may be paid for by using the City’s tuition reimbursement program. i) In accordance with Cal-OSHA regulations any employee who operates a forklift must have Forklift Operator Certification. Training to be provided by the City. j)Crane Certification. A Heavy Equipment Operator, Electric Heavy Equipment Operator, Line Person, Line Person Lead, or Maintenance Mechanic who possesses the legally required certification for operation of any crane will receive $3,000 the first full pay period following the later of January 1 in each year, or the adoption of the MOA, and upon verification that the certification is held. an increase of one percent (1%) of their base rate effective upon the ratification and adoption of this MOU by the City Council, or upon attainment of the certification, whichever is later. Heavy Equipment Operator (Electric) must possess a Crane certification regardless of hire date. Any employee hired on or after July 1, 2012 may be required to obtain and possess crane certification. For any other employee hired prior to July 1, 2012 crane certification shall be desirable (not required) except under the following circumstances: a) There are insufficient employees in the classification (Heavy Equipment Operator [exclusive of Electric], Lineperson, Lineperson Lead or Maintenance Mechanic) who possess the certification to perform the work; b) The Manager has sought volunteers and no employee in the classification has volunteered to train for the certification; c) All things being equal, the manager has selected the least senior employee in the classification who is judged by the City most likely to successfully complete the training and obtain crane certification. d) The Manager will allow up to three attempts to pass the crane certification for any employee hired before July 1, 2012 who has been involuntarily assigned to acquire the crane certification. Related training and test costs shall be borne by the City. City of Palo Alto and SEIU Local 521 Page 43 of 88 No employee hired before July 1, 2012 shall be disciplined or discharged for failure to acquire a Crane certification. Section 5 - Weather Protection. The City will provide rainy weather foot protection and one summer hat for the classification of Community Services Officer. ARTICLE 10 - HOLIDAYS Section 1 - Fixed Holidays. Except as otherwise provided, employees within the representation unit shall have the following fixed holidays with pay: January 1 Third Monday in January (Martin Luther King Day) Third Monday in February Last Monday in May July 4 First Monday in September Second Monday in October Veterans' Day, November 11 Thanksgiving Day Day after Thanksgiving December 25 Winter Floater (see below) In the event that any of the aforementioned days falls on a Sunday, the following Monday shall be considered a holiday. In the event that any of the aforementioned days falls on a Saturday, the preceding Friday shall be considered a holiday. Exceptions to this provision are listed in Appendix E. Winter Floater. Employees shall be excused with pay for a full work shift on a day mutually agreed to by the employee and their supervisor during the month of December. If employees are not excused pursuant to this provision, one shift of vacation credit will be added to their vacation accrual. Day of Reflection. In addition to the paid holidays listed above, employees shall be excused with pay for one full work shift as a day of reflection (floating holiday) per calendar year. Employees may use the floating holiday on any day mutually agreed by the employee and their supervisor for a Day of Reflection, including: Juneteenth Freedom Day (June 19) or Cesar Chavez/Dolores Huerta Day (March 31). Day of Reflection not used by the end of the calendar year will be deemed forfeited and have no cash value. City of Palo Alto and SEIU Local 521 Page 44 of 88 Section 2 - Pay for Fixed Holidays. City of Palo Alto and SEIU Local 521 Page 45 of 88 Section 5 - Floating Days Off ARTICLE 11 - VACATIONS th) year: eighty (80) hours vacation per year. th) year: one-hundred and twenty (120) hours vacation per year. th) year of continuous service through the last day of the fourteenth (14th) year: one-hundred and sixty (160) hours vacation per year. th) year of continuous service through the last day of the nineteenth (19th) year: one-hundred and eighty (180) hours vacation leave per year. City of Palo Alto and SEIU Local 521 Page 46 of 88 increments of use. Employees shall complete six (6) months' continuous service before using accrued vacation leave. City of Palo Alto and SEIU Local 521 Page 47 of 88 Section 6 - Vacation at Termination. City of Palo Alto and SEIU Local 521 Page 48 of 88 ARTICLE 12 - LEAVE PROVISIONS Section 1 - Sick Leave. a) The City shall provide each employee with paid sick leave, earned on a biweekly basis, at the rate of ninety-six (96) hours per year for full time employees. Employees will accrue sick leave at a rate of three point seven (3.7) hours per pay period. Sick leave accrual will be prorated based on hours in paid status. Sick leave accrual accumulation shall be limited to 1,000 hours b)Use of Sick Leave. Sick leave shall be allowed and used in cases of actual personal sickness or disability, medical or dental treatment, or as authorized for personal business. Up to nine (9) days sSick leave per year may be used for illness in the immediate family, including registered domestic partner, or other individuals required by law. A new employee may, if necessary, use up to forty-eight (48) hours of sick leave at any time during the first six (6) months of employment. Any negative balances generated by such utilization will be charged against future accrual or deducted from final paycheck in the event of termination. c) An employee who has been disabled for 60 consecutive days and who is otherwise eligible both for payment under the long-term disability group insurance coverage and accrued sick leave benefits may, at his/her their option, choose either to receive the long term disability benefits or to utilize the remainder of his/her their accrued sick leave prior to applying for long-term disability benefits. d) Sick leave will not be granted for illness occurring during any leave of absence unless the employee can demonstrate that it was necessary to come under the care of a doctor while on such other leave of absence. e)Return to Work With Limited Duty. Upon approval of department management and the City Risk Manager, an employee may return to work for doctor-approved limited duty. Approval for return to work shall be based upon department ability to provide work consistent with medical limitations, the location of the work assignment, and the length of time of the limitations. The City doctor may be consulted in determining work limitations. f) If an employee’s illness results in an absence from work for more than three (3) consecutive work days or twenty-four (24) continuous hours, whichever is greater, a doctor’s certificate or other proof of illness may be required. The department head or designee may require a doctor’s certificate or other proof of illness when there is reasonable cause of misuse. City of Palo Alto and SEIU Local 521 Page 49 of 88 g) Leave Committee Disability. Leaves of absence without pay may be granted in cases of disability not City of Palo Alto and SEIU Local 521 Page 50 of 88 b)Family Leave. Family leave will be granted in accordance with applicable state and federal law. Other Leaves. Leaves of absence without pay may be granted in cases of personal emergency, Union business or when such absences would not be contrary to the best interest of the City. Non-disability prenatal leave is available under this provision, but such leave shall not begin more than six months prenatal nor extend more than six months postpartum. City of Palo Alto and SEIU Local 521 Page 51 of 88 Section 7 - Disapproval of Leave of Absence. ARTICLE 13 - WORKERS' COMPENSATION INSURANCE City of Palo Alto and SEIU Local 521 Page 52 of 88 Section 2 - Vocational Rehabilitation Benefits for Permanently Disabled Employees. ARTICLE 14 - BENEFIT PROGRAMS Active Employees •Employee only: $943 906 •Employee plus one: $1885 1,812 •Employee Family: $2,444 2,350 •Employee only: increase City contribution by two percent (2.0%) to $962 per month. City of Palo Alto and SEIU Local 521 Page 53 of 88 •Employee plus one: increase City contribution by three percent (3.0%) to $1,942 per month. •Employee family: increase City contribution by five percent (5.0%) to $2,566 per month. Effective January 1, 2024, the City will increase its maximum contribution by 50% of the increases to Kaiser. Provided however, that the total increase of the maximum City contribution shall not exceed 4%. The City’s total maximum contribution towards medical premiums for eligible part time employees shall be prorated based on the number of hours per week the part-time employee is assigned to work. PEMHCA minimum changes per statutory determination and has historically been increased by $3 dollars each year. Any increases to the PEMHCA minimum during the term of this contract will result in a corresponding decrease to the amount of the additional City contribution, so that the total maximum City contribution never exceeds the amount listed in the Maximum City Contribution described above. b) Health Plan Coverage for Future Retirees Hired Before January 1, 2005. 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. Effective 1/1/07 the City’s monthly employer contribution for each retiree and their eligible family members, as defined by the CalPERS Health Benefits Program, shall be the amount necessary to pay for the cost of his or her enrollment, in a health benefits plan up to the monthly premium for the 2nd most expensive plan offered to the SEIU employee (among the existing array of plans). However, the City contribution for an employee hired before January 1, 2005 who retires on or after April 1, 2011 the City contribution for the retiree and their eligible family members, as defined by the CalPERS Health Benefits Program, shall be the same contribution amount it makes from time to time for active City employees. The City provided active unit employees who were hired before January 1, 2005 with a one-time opportunity to opt-in to retiree health benefits provided under California Government Code section 22893. Eligible employees who wish to exercise this option shall inform the People, Strategy, and Operations department of their election in writing no later than 90 days following the ratification and adoption of this Agreement. c) PERS – Health Benefit Vesting For Future Retirees Effective January 1, 2005 or any existing employee who opts into this vesting schedule. City of Palo Alto and SEIU Local 521 Page 54 of 88 The CalPERS vesting schedule set forth in Government Code section 22893 will apply to all SEIU employees hired on or after January 1, 2005 or any existing employees who opt into this vesting schedule. Under this law, an employee is eligible for 50% of the specified employer health premium contribution after ten 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 year of service credit will increase the employer contribution percentage by 5% until, at 20 years’ service credit, the employee will be eligible upon retirement for 100% of the specified employer contribution. However, the maximum contribution for eligible family members, as defined by the CalPERS Health Benefits Program, will be 90% of the specified employer contribution. The City of Palo Alto's health premium contribution will be the minimum contribution set by CalPERS under section 22893 based on a weighted average of available health plan premiums. Retiree Health Committee Coverage for Domestic Partners. 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. Domestic Partnership 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 a stipend of two hundred and eighty four dollars ($284.00) per month toward the cost of an individual health plan. Evidence of premium payment will be required with request for reimbursement. Alternative Medical Benefit Program. City of Palo Alto and SEIU Local 521 Page 55 of 88 Examples of waivers eligible for this payment are: City of Palo Alto and SEIU Local 521 Page 56 of 88 b) The City’s Dental Plan provides the following: •Maximum Benefits per Calendar Year $2,000 per person. . City of Palo Alto and SEIU Local 521 Page 57 of 88 The City shall continue the long term disability insurance plan currently in effect for the term of this Memorandum of Agreement. For Plan A, the benefit is 66 and 2/3% of pre- disability earnings to the maximum benefit level of $4000.00 per month. Employee coverage is subject to a voluntary payroll deduction of the insurance premium applicable to the first $6,000 of monthly salary, less a credit of $11.17 per month to be paid by the City. For Plan B, the benefit is 60% of pre-disability earnings up to the maximum benefit level of $1800 per month. Employee coverage is subject to a voluntary payroll deduction of the insurance premium applicable to the first $2000 of monthly salary for Plan B. The City will pay premiums in excess thereof. City of Palo Alto and SEIU Local 521 Page 58 of 88 deduct the annual administrative fee through a payroll deduction (currently $4 as of 2015) or if the employee has unused FSA dollars from the prior calendar year, the City will apply those dollars to cover the administrative fee. Section 10 - Training Programs. a) Employees assigned by the City to attend meetings, workshops, or conventions of their professional or technical associations shall have their dues and reasonable expenses paid by departmental funds and shall be allowed to attend such workshops, meetings, and conventions on paid City time. b)City will reimburse for travel, meals and lodging while away from home attending an educational conference that the supervisor authorizes as being job related or which will improve an employee’s skills. Per City Policy and Procedure 1-02, the Pre-Travel Authorization Form should indicate expenses that will be paid. ARTICLE 15 – RETIREMENT Section 1 - PERS Continuation. a)Pension Group A: 2.7% @ 55. The City will continue the present benefits under the Public Employees' Retirement System 2.7% at 55 for employees hired before July 17, 2010. The Parties acknowledge that employees under this formula hired before July 17, 2010 are subject to a final compensation calculation, for pension determination purposes, based on their single highest year of compensation earnable as provided by Government Code Section 20042. b)Pension Group B: 2.0% @ 60 – (Single Highest Year). For employees hired on or after July 17, 2010 and before January 1, 2013, and employees hired on or after January 1, 2013 who are not “new members” of CalPERS as defined in the Public Employees’ Pension Reform Act (often referred to as “Classic” CalPERS members), but before the adoption of the modified 2% at 60 formula described below, whichever is later, the City will continue to provide the 2% at 60 retirement formula (“2% at 60”). The Parties acknowledge that employees under the existing 2% at 60 pension formula are subject to a final compensation calculation, for pension determination purposes, based on their single highest year of compensation earnable as provided by Government Code section 20042. c)Pension Group C: 2.0% @ 60 – (3 Highest Years). The City shall further amend its contract with CalPERS to provide miscellaneous “Classic” CalPERS members hired on or after August 1, 2013 with the CalPERS retirement formula two percent (2.0%) of final compensation at age sixty (60) with a final compensation calculation, for pension City of Palo Alto and SEIU Local 521 Page 59 of 88 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 accommodate 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% of final compensation at age 60 formula with single highest year earnable compensation as described above. d)Pension Group D: 2% @ 62. Employees hired on or after January 1, 2013 meeting the definition of “new member” under the Public Employees’ Pension Reform Act (Gov’t. Code s. 7522 et seq.) shall be subject to all of the provisions of that law, including but not limited to the two percent at age 62 (2%@62) retirement formula with a three year final compensation period. Section 2 - Employee Share. Effective with the first pay period including July 1, 2012 employees in Pension Groups A, B and C described in Section 1 above shall pay 8% if enrolled in the 2.7%@55 benefit or 7% if enrolled in the 2%@60 benefit. Employees in Pension Group D shall pay the employee contribution required by the Public Employees’ Pension Reform Act, calculated at fifty percent (50%) of the normal cost. Section 3. Employer Share. Effective the first full pay period following December 1st, 2017, employees (Groups A-D) shall pay one percent (1.0%) of their salary toward the employer cost of retirement (in addition to the employee share) in accordance with Section 20516 of the California Government Code. Effective the first full pay period including December 1, 2020, employees in this unit (Groups A-D) shall pay an additional 1% of their salary toward the employer cost of retirement for a total of 2% (in addition to the employee share) contribution toward the employer share. This will result in SEIU employees in Groups A-D paying a total of two (2) percent of the employer share (in addition to the employee share) effective the first full pay period including December 1st, 2020. City of Palo Alto and SEIU Local 521 Page 60 of 88 ARTICLE 16 - COMMUTE INCENTIVES AND PARKING Section 1 - Commute Incentive. It is the City’s interest to reduce single occupancy vehicle trips to the extent possible in order to address current traffic and environmental challenges. During the term of this agreement, the parties shall meet and confer on changes to the City’s commute incentive and parking program adopted by the City Council. Eligible employees may voluntarily elect one of the following commute incentives: a.Civic Center Parking. Employees assigned to Civic Center and adjacent work locations. The City will provide a Civic Center Garage parking permit. New employees hired after April 30, 1994 may initially receive a parking permit for another downtown lot, subject to the availability of space at the Civic Center Garage. b.Carpool. The City will provide $30 per month (taxable income) to each eligible employee in a carpool for 60% or more of their scheduled work days per month with two or more people. c.Bicycle. The City will provide $20 per month to eligible employees who ride a bicycle to work. This payment is available through the CCD web site in the form of a special Commuter Check (tax free) for bike equipment, gear or repairs. This benefit cannot be combined with other commute benefits. d.Walk. The City will provide $20 per month (taxable income) to eligible employees who walk to work 60% or more of their scheduled work days. e.Transit or vanpool users: Tax-free incentives up to the IRS limit (currently $255/month) are available through the Commuter Check Direct (CCD) web site for employees using Bay Area public transportation or riding in a registered vanpool at least 60% of their scheduled work days. f.Go Pass. The Go Pass program will offer civic center and other downtown- based employees a Caltrans Go Pass that allows unlimited rides on Caltrain in all zones seven days per week. g. The City and Union agree to meet in Labor Management Committee to assess and improve the application of the telecommuting policy and option for employees. City of Palo Alto and SEIU Local 521 Page 61 of 88 The deadline for registering with CCD and placing an online order is 8:59 p.m. on the 7th of each month, for the next month’s benefit. For example, employees wishing to order a transit pass by June must place their online orders with CCD by May 7th. . ARTICLE 17 - PHYSICAL EXAMINATIONS ARTICLE 18 – SAFETY City of Palo Alto and SEIU Local 521 Page 62 of 88 Union will cooperate with the City by encouraging all employees to perform their work in a safe manner. Section 3 - Safety Committees and Disputes. Safety committees composed of Management and Union stewards in the below listed organizations will meet no less than six (6) times annually to discuss safety practices, methods of reducing hazards, and to conduct safety training. This shall in no way remove the basic responsibility of safety from Management nor shall it in any way alter the responsibility of the employee to report unsafe conditions directly and immediately to his or her supervisor. Community Services Public Works Water-Gas-Wastewater Field Operations Electric Field Operations Water Quality Control a) A ten-member Citywide Union/Management safety committee with equal Union and Management membership will meet upon call to review safety and occupational health standards and practices, discuss overall City safety and health problems, and to act as an advisory group to the departmental safety committees. The committee shall review all departmental safety programs and recommend change where necessary. b) In cases of dispute over safe working conditions the employee will first report such unsafe conditions to his/her their supervisor and every attempt will be made to rectify the problem at this level. The employee may contact his/her their steward to assist in the resolution of the dispute. If the problem cannot be resolved the Risk Manager will be contacted and the problem will be addressed through the interpretation of the basic safety rules and regulations. Should the problem not be resolved at this step, the grievance procedure will be utilized. Safety grievances shall be submitted at Step 3 III. c) The City will continue employee workplace evaluations in compliance with CalOsha, Title 8, section 5110. City of Palo Alto and SEIU Local 521 Page 63 of 88 ARTICLE 19 - GRIEVANCE and APPEAL PROCEDURE Section 1 - General Provisions. The City and the Union recognize that early settlement of grievance or appeal of disciplinary actions is essential to sound employee-employer relations. The parties seek to establish a mutually satisfactory method for the settlement of employee grievances, or appeal of disciplinary action, or Union grievances as provided for below. In presenting a grievance or appeal of disciplinary action, the aggrieved and/or his or her their representative is assured freedom from restraint, interference, coercion, discrimination, or reprisal. Release time for investigation and processing a grievance or appeal of disciplinary action is designated in Article IV of this Memorandum of Agreement (MOA). Section 2 – Definitions. a) Grievance means an unresolved complaint or dispute regarding the application or interpretation of rules, regulations, policies, procedures, this MOA, Memorandum of Agreement or City ordinances of resolution, relating to terms or conditions of employment, wages or fringe benefits, excluding however those provisions of this MOA which specifically provide that the decision of any City official shall be final, the interpretation or application of those provisions not being subject to the grievance or appeal of disciplinary action procedure. b) Appeal of a disciplinary action means an appeal of any kind of disciplinary action against an employee covered by this Memorandum of Agreement. Discipline is defined as suspensions without pay, reductions in pay, demotion, or discharge. Reprimands, transfers, reassignments, layoffs, and negative comments in performance evaluations are not considered discipline. Section 3 - Conduct of Grievance Procedure or Appeal of Disciplinary Action Procedure. a) An aggrieved employee may be represented by the Union or may represent himself/herself themselves in preparing and presenting a grievance or appeal of disciplinary action at any level of review, except arbitration. Grievances or appeal of disciplinary action may also be presented by a group of employees. No grievance or appeal of disciplinary action settlement may be made in violation of an existing merit rule or memorandum of agreement. The Union will be notified prior to the implementation of any settlement made which affects the rights or conditions of other employees represented by the Union. The Union and the Steward will be copied on all written representation unit grievance or appeal of disciplinary action decisions. City of Palo Alto and SEIU Local 521 Page 64 of 88 b) An employee and the representative steward, if any, may use a reasonable amount of work time so long as there is no disruption of work, in conferring about and presenting a grievance or appeal of disciplinary action. Requests for release time to prepare grievance or appeal of disciplinary action shall be made in accordance with the provisions of Article 4 IV, Section 3. City of Palo Alto and SEIU Local 521 Page 65 of 88 procedure. The Union may also file a grievance in those instances when, under this Memorandum of Agreement, a Union right not directly related to an individual employee becomes the subject of dispute. Union grievances shall comply with all of the foregoing provisions and procedures. k) For purposes of time limits, “working days” are considered to be Monday through Friday, exclusive of City holidays. l) If a mutually agreed solution is reached during any step of this grievance or appeal of disciplinary action procedure, the agreement shall be placed in writing and signed by the City and the grievant or union. m) Upon request of either party, meetings to discuss the grievance or appeal of disciplinary action shall be held at any step in the grievance or appeal of disciplinary action procedure. n) The Parties may mutually agree in writing to an alternate method(s) of delivery for any communication for any notices required pursuant to Article 19 XIX, Grievance Procedure, of a grievance or appeal of disciplinary action. Such agreement shall list the designated representative(s) for each party and the appropriate contact information for each Party, and describe the agreed-upon method(s) of communication. All designated representatives shall be copied on any communications. On all transmissions that are intended to conform to a time limit, the sender shall retain proof that the transmission was sent within that limit (for example, confirmation of electronic mail transmission or record of successful fax transmission) in the sender’s file for production if a dispute arises over existence or timing of the transmission. Either Party may designate new representatives or terminate an alternate delivery agreement under this section by providing written notice, which shall be effective immediately, to the other. Section 4 - Grievance and Appeal Procedure. Step 1 I. Informal Discussion. Within fifteen (15) working days after the incident or discovery of the incident on which the grievance or appeal of disciplinary action is based the aggrieved employee shall present the grievance action to his or her their immediate supervisor and attempt to resolve the grievance through informal discussions. Every attempt will be made to settle the issue at this level. Step 2 II. If the grievance is not resolved through the informal discussion in Step 1 or the employee wishes to appeal disciplinary action taken against him/her them in the case of a grievance, the employee will reduce the grievance or appeal of disciplinary action to writing and submit copies to the Department head or his or her their designee within City of Palo Alto and SEIU Local 521 Page 66 of 88 fifteen (15) working days of the discussion with the immediate supervisor or within fifteen (15) working days from the receipt of a final disciplinary action. The Department Head or designee shall have fifteen (15) working days from the receipt of a written grievance or appeal of disciplinary action to review the matter and prepare a written statement. Step 3 III. If the grievance or appeal of disciplinary action is not resolved and/or the aggrieved employee is not satisfied with the Step 2 II decision, the grievant or disciplined employee may appeal to the Human Resource Director or his or her their designee in writing within fifteen (15) working days of the receipt of the Department Head's response. The written appeal to the Human Resources level shall include a copy of the original grievance or appeal of disciplinary action, the Department Head’s decision at Step 2 II, and a clear statement of the reasons for appeal. Within fifteen (15) working days, after receiving the written appeal, the Human Resource Director shall review the matter and prepare a written statement. If a mutually agreed solution is reached during this process the agreement shall be placed in writing and signed. Step 4 IV. If the grievance or appeal of disciplinary action is not resolved at Step 3 III, the union may appeal aggrieved employee may choose between final and binding resolution of the grievance or appeal of disciplinary action., by filing the appeal through appeal to the City Manager or through appeal to final and binding arbitration. For the term of this Memorandum of Agreement, aAppeals to final and binding arbitration may be processed only with Union approval. All Step 4 IV appeals must be filed in writing at the Human Resources Department within fifteen (15) working days of receipt of the Human Resource Director’s decision at Step 3. City of Palo Alto and SEIU Local 521 Page 67 of 88 terms or conditions of employment, wages or fringe benefits, as may hereafter be in effect in the City insofar as may be necessary to the determination of grievances or appeal of disciplinary action appealed to the arbitrator. The arbitrator shall be without power to make any decision contrary to, or inconsistent with or modifying in any way, the terms of this Memorandum of Agreement. The arbitrator shall be without authority to require the City to delegate or relinquish any powers which by State law or City Charter the City cannot delegate or relinquish. Where either party seeks arbitration of a grievance and the other party claims the matter is not subject to the arbitration provisions of this Memorandum of Agreement, the issue of arbitrability shall first be decided by the arbitrator using the standards and criteria set forth herein in Article XX and without regard to the merits of the grievance or appeal of disciplinary action. If the issue is held to be arbitrable, the arbitration proceedings will be recessed for up to five (5) working days during which the parties shall attempt to resolve the grievance. If no resolution is reached, the arbitrator will resume the hearing and hear and resolve the issue on the merits. Copies of the arbitrator's decision shall be submitted to the City, the aggrieved employee and the Union. All direct costs emanating from the arbitration procedure shall be shared equally by the City and the aggrieved employee or the Union. ARTICLE 20 - UNSATISFACTORY WORK OR CONDUCT AND DISCIPLINARY ACTION City of Palo Alto and SEIU Local 521 Page 68 of 88 d) Statement in ordinary and concise language of the act or the omissions upon which the causes are based; ARTICLE 21 - NO ABROGATION OF RIGHTS City of Palo Alto and SEIU Local 521 Page 69 of 88 ARTICLE 22 - OUTSIDE EMPLOYMENT The provisions of City of Palo Alto Policy and Procedure 2-05: Outside Employment and Article 4.7 of the Government Code of the State of California (Gov’t, Code § 1125 – 1129) will govern the determination of incompatible outside employment. The City agrees that it will not lock out employees, and the Union agrees that it will not engage in any concerted work stoppage or slowdown during the term of this MOA. An employee shall not have the right to recognize the picket line of a labor organization when performing duties of an emergency nature. Section 1 - Conformity and Separability of Provisions. This Memorandum of Agreement is subject to all current and future applicable Federal and State laws and Federal and State regulations and the Charter of the City of Palo Alto and the Constitution of the State of California. Should any of the provisions herein contained be rendered or declared invalid by reason of any existing State or Federal legislation, such invalidation of such part or portion of this Memorandum of Agreement shall not invalidate the remaining portions hereof, and they shall remain in full force and effect, insofar as such remaining portions are severable. Section 2 - Merit Rules and Regulations. This Memorandum of Agreement shall become a part of the City of Palo Alto Merit Rules and Regulations applying to employees assigned to classifications in the SEIU unit. As applied to employees assigned to the SEIU unit, this Memorandum of Agreement shall prevail over any conflicting Merit Rules and Regulations. Section 3 - Resolution. The City and the Union agree by signing this Memorandum of Agreement that the wages, hours, rights and working conditions contained herein shall be continued in full force during the term of this Memorandum of Agreement except as otherwise provided for in the Memorandum of Agreement and shall be binding on both the City and the Union upon ratification by the Council of the City of Palo Alto and upon ratification by Union membership. City of Palo Alto and SEIU Local 521 Page 70 of 88 ARTICLE 25 – PROFESSIONAL DEVELOPMENT TUITION REIMBURSEMENT The City shall fund a Tuition and Student Loan Reimbursement Program for use by employees in the unit. This program will provide reimbursement to eligible SEIU members for successful completion of undergraduate, graduate level courses, collegiate level certification courses or any other pre-approved training related to employment opportunities with the City. The City will fund up to $100,000 for each fiscal year of the term of this MOA. The maximum reimbursement will be one two thousand five hundred dollars ($2,500 1,500) total per employee for each fiscal year of this MOA. Monies expended on this program will be subject to appropriate IRS regulations. Requests for reimbursement are on a first come first serve basis and must be submitted within thirty (30) calendar days of the end of the fiscal year to be allocated to the fiscal year. Section 1 – Tuition Reimbursement The Tuition Reimbursement will be provided if the following conditions are met: a. Courses, classes or trainings must be pre-approved as job related by the division head or designee prior to the start date. Employees may appeal a denial to the Human Resources Director or designee within 5 working days of receipt of denial, whose decision shall be final. b. Eligible expenses include required textbooks, tuition, fees, lab fees and equipment, but will not include parking fees or health fees related to enrollment. c. Employees must attain a final grade of “C” or better for both undergraduate and graduate work. Courses providing a “pass/fail” must achieve a “pass” to qualify for reimbursement. Ungraded courses, classes or trainings will be reimbursed based on proof of successful completion. d. Requests for reimbursement shall be submitted in accordance with the procedures developed by the City. A request for reimbursement will not be considered submitted until it includes the relevant receipts and proof that the necessary grade or successful completion was earned. e. Courses must be taken on the employee’s off duty hours, unless prior approval is received from the employee’s supervisor. Section 2 – Student Loan Reimbursement Student Loan Reimbursement conditions: a. Employees must have an active student loan in good standing. City of Palo Alto and SEIU Local 521 Page 71 of 88 b. Employees must successfully complete the secondary education with which the student loan was incurred, and must provide proof of successful graduation or completion. c. Requests for reimbursement shall be submitted in accordance with the procedures developed by the City. A request for reimbursement will not be considered submitted until it includes proof of payment towards the employee’s student loan within the eligible fiscal year. Section 3 – Training Programs a) Employees assigned by the City to attend meetings, workshops, or conventions of their professional or technical associations shall have their dues and reasonable expenses paid by departmental funds and shall be allowed to attend such workshops, meetings, and conventions on paid City time. b) The City will reimburse for travel, meals and lodging while away from home attending an educational conference that the supervisor authorizes as being job related or which will improve an employee’s skills. Per City Policy and Procedure 1-02, the Pre-Travel Authorization Form should indicate expenses that will be paid. ARTICLE 26 - COST REDUCTION PROGRAMS During the term of this agreement, the Union will aggressively assist Management in developing cost reduction programs. Such programs may include voluntary reduced hours/pay after this concept is studied by Management, and with such application as may be approved by Management. ARTICLE 27 – TERM This Memorandum of Agreement shall become effective upon ratification by both parties hereto and remain in effect through December 31, 2027. The Term of this Memorandum of Agreement shall commence on January 30, 2023 and shall expire on December 31, 2024. The Parties agree that they will commence negotiations over a successor to this Memorandum of Agreement no later than one hundred eighty (180) days (July 4, 2024) before its expiration. If, at the time this Memorandum of Agreement would otherwise expire, the parties are continuing to negotiate a successor Memorandum of Agreement, upon mutual agreement the terms and conditions of this Memorandum will continue in effect. City of Palo Alto and SEIU Local 521 Page 72 of 88 ARTICLE 28 – REOPENER ON APPRENTICESHIP PROGRAMS Upon written request of the City, this MOA will reopen on the subject of Apprenticeship Programs and the Parties will meet and confer over revisions to Appendix B and any related sections. City of Palo Alto and SEIU Local 521 Page 73 of 88 EXECUTED: _______________________________ _______________________________ Teneya Johnson, Chief Negotiator Ed Shikada, City Manager __ Peter Quiroz, Chapter Chair Molly Stump, City Attorney __ Sara’ Temple Charles Sakai, Chief Negotiator _____ __ Nathan McClure Sandra Blanch __ David Sigua Ben Farnsworth ___ Scott Johnson Sandhya Uthup Sara Temple Lewis Paris Ratu Serumalani City of Palo Alto and SEIU Local 521 Page 74 of 88 Nathan McClure Jose Vigil Wesley Patnesky Kevin Carley City of Palo Alto and SEIU Local 521 Page 75 of 88 APPENDIX A The salary rates of bargaining unit classifications will be as set forth in Appendix A of this MOA a) General Salary Increase: Effective the first full pay period including following the later of January 1, 2025 or the adoption of the MOA, the salary ranges of all represented classifications will be increased by four three percent (4.0% 3%). b) Market Adjustment: Effective the first full pay period following the adoption of the MOA, the salary ranges of all represented classifications will be increased in an amount sufficient to bring them to the top quartile (75th percentile) of the labor market before application of the General Salary Increase as determined by the City’s market study (PEPRA). However, no represented classification shall receive a market adjustment of more than three percent (3%). Effective the first full pay period including the adoption of the MOA, the salary ranges of all represented classifications will be increased in an amount sufficient to bring them to 75th percentile of market median before application of the General Salary Increase as determined by the City’s market study. Effective the first full pay period following January 1, 2026, each represented classification which was more than three percent (3%) below the top quartile (75th percentile) of the City’s market study (PEPRA) will receive the remainder of the market adjustment required to bring them to the 75th percentile. For example, if classification A was 3.6% below the top quartile (75th percentile) of the labor market before application of the 2025 General Salary Increase as determined by the City’s market study (PEPRA), that classification would receive a 3.0% market adjustment in 2025 and a 0.6% market adjustment in 2026. c) One-time Lump Sum Bonus: The City will pay each represented employee a Oone- time discretionary cash payment of $1,200 $300 for each for regular employee who is a member of the bargaining unit and in paid status in the first full pay period including following City Council adoption of this MOA (prorated for part time employees). Parties understand this to be non-pensionable compensation and excludable from regular rate of pay. d) General Salary Increase: Effective the first full pay period following the later of January 1, 2024 2026 or the adoption of the MOA whichever is later, salary ranges of all represented classifications will be increased by four two and one half percent (4.0%2.5%). City of Palo Alto and SEIU Local 521 Page 76 of 88 e) General Salary Increase: Effective the first full pay period following the later of January 1, 2027 or the adoption of the MOA, salary ranges of all represented classifications will be increased by three percent (3%). Recruitment and Retention To address current market conditions and specific benefits provided by competing employers to employees in the electrical lineperson category, the parties agree to the following: 1) Standby Compensation. Employees in the Lineperson and Water/Gas/Wastewater Job Families who are assigned to standby duty shall be compensated at the daily rates established below: •Monday through Friday two (2) hours at their straight time regular rate of pay •Saturday, Sunday, Holidays three (3) hours at their straight time regular rate of pay 2) Overtime Compensation. Employees in the Electrical Lineperson/Cable Splicer job family will be paid two (2) times the employee’s applicable salary for all overtime work. City of Palo Alto and SEIU Local 521 Page 77 of 88 APPENDIX B. APPRENTICESHIPS Note: Employees hired into a Lineperson Apprenticeship position on or before April 11, 2016 will continue to progress through the Apprenticeship steps and into the Lineperson journey rate at the same intervals as existed before April 11, 2016 in the Apprenticeship Program. Substation Electrician, Street Light /Traffic Signal / Fiber Technician, Lineperson/Cable Splicer APPRENTICE: Upon completion, may lead to Journey level position. The Utilities Department has formalized the Apprenticeship programs in the Electric Section to develop journey level electricians/technicians and lineperson/cable splicers. The following are basic concepts/principles to be incorporated: 1. The administration and operation of the Apprenticeship programs will be managed by the Apprenticeship Committee, which will be selected by the Manager of Electric Operations and comprised of two (2) bargaining unit members designated by Local 521 and two (2) Utility Supervisors and the Manager of Electric Operations. The Manager of Electric Operations will maintain oversight of the program. The Apprenticeship Program will be subject to review and approval by the State of California Department of Industrial Relations Division of Apprenticeship Standards. 2. The journey level position will not be a promotional opportunity for anyone other than the apprentice under filling the position, as long as that apprentice is successfully progressing through the program. 3. Employees within Electric Operations, who qualify, will be given first consideration for the apprentice position prior to other City classifications or recruiting from outside the City. 4. A letter of agreement will be entered into by the apprentice and the City identifying the terms and conditions of the program. 5. The program will normally require eight thousand (8000) work hours (48 months) to complete for Lineperson Cable Splicer and six thousand (6000) work hours (36 months) for Substation Electrician, Street Light /Traffic Signal / Fiber Technician positions. 6. Normal progress through the program will be in periodic increments with formal evaluations. City of Palo Alto and SEIU Local 521 Page 78 of 88 7. The salary steps for the Substation Electrician, Street Light /Traffic Signal / Fiber Technician and Lineperson Cable Splicer apprenticeships are outlined in the State of California Department of Industrial Relations Division of Apprenticeship Standards. Month Step Step Intervals Month Step City of Palo Alto and SEIU Local 521 Page 79 of 88 Upon successful completion of the Apprenticeship, the employee will be reclassified / progressed to Substation Electrician or Street Light /Traffic Signal / Fiber Technician Journey Level and paid at the fifth step (step 5) of the journeyman rate. City of Palo Alto and SEIU Local 521 Page 80 of 88 APPENDIX C. DEPT/DIVISION CLASSIFICATION WORKDAY OR WORKWEEK VARIATION Section 1. Exceptions to Standard Workday or Work Week for SEIU Representation Unit: Library Department Coordinator, Library Programs Librarian Senior Librarian Library Specialist Library Associate In a given workweek, staff may work three eight-hour days, one seven-hour day, and one nine-hour day. On a voluntary basis, staff may work five non-consecutive days within seven. Section 2. Rules Governing Flexible Work Hours. These rules and procedures are established pursuant to Article VI, Section 8, and are an application of Article VIII, Sections 1, 2, and 3 of the Memorandum of Agreement to the classifications of Coordinator, Recreation Programs; Producer, Arts & Sciences Programs; Program Assistant; Theater Specialist, in the Recreation and Arts & Sciences Divisions of the Community Services Department, and the classifications of Associate Planner, Building Planning Technician, CDBG Coordinator, Engineer, , Planner, and Senior Planner in the Planning and Community Environment Department. a) Flexible Work Schedule 1. Employees in the covered classification shall be permitted to arrange flexible work schedules with division approval, providing that such schedules shall include forty (40) hours per week. 2. Standard daily office hours are typically Monday through Friday, between the hours of 8:00 a.m. and 6:00 p.m. as determined by the Department. Flexible hours may occur for supervision of, and/or attendance at, evening programs, meetings, weekend events, or other programs. b) Overtime 1. Emergency call-out work shall be defined as overtime work and compensated per standard City practices. City of Palo Alto and SEIU Local 521 Page 81 of 88 2. If the need arises for overtime work due to an unusual circumstance calling for extra hours or due to a special event, compensation shall be allowed with prior approval of the Director of Recreation, Director of Arts and Sciences, or the Director of Planning and Community Environment, and shall be compensated for, as spelled out in the Memorandum of Agreement. Section 3. 2080 Plan a) Either the Union or the City may withdraw from the Plan by giving the other party 30 calendar days written notice. In the event of termination of the plan, the covered classifications will return to an 8-hour or other authorized workday as provided under Article VIII, Section 1, of this Memorandum of Agreement. b) Provisions of the 2080 Plan are as follows. To the extent that these provisions are in conflict with other provisions of the Memorandum of Agreement, these provisions will prevail. c) The 2080 Plan or “12 hours per Shift Schedule” is an authorized work schedule for the Utility Systems Operators and Water Quality Control Plant Operators. 2080 Plan Under this 2080 Plan, each employee's hours of work per year may not exceed 2,240. For scheduling purposes, and subject to the Merit System Rules and Regulations, the employee will be guaranteed not less than 2080 hours per year, or no less than 52 weeks at the normal number of hours worked per week. Any employee covered by the Plan who works up to 2,080 hours per year is compensated for all hours worked at the agreed upon rate. The City must pay overtime for all hours worked in excess of 12 in any workday, 56 hours in any work week, or 2080 hours in 52 weeks as the case may be. The rate of overtime will be at time and one-half the employee's regular rate of pay (or current contract overtime rate, if different). Shift Schedule The shift schedules combined must provide full 24-hour, seven (7) days per week coverage for the Utility Control Center and Water Quality Control Plan. The shift schedule shall be a rotating schedule. The Utility Systems Operators’ shift schedule will reach the equivalent of 40 hours per week in five weeks. The 12-hour shifts begin at 7:00 a.m. and 7:00 p.m. The Relief shift shall begin at 7:00 a.m. and end at 3:00 p.m. with lunch taken while working. The shift schedule shall be rotating schedule. The Water Quality Control Plant Operators’ shift schedule will reach the equivalent of 40 hours per week in two weeks. There will be four 12-hour shifts that begin at 6:00 a.m. and 6:00 p.m. The fifth shift will be a 4/10 shift that begins at 6 a.m. on three days, and at noon on the fourth day. City of Palo Alto and SEIU Local 521 Page 82 of 88 Pay Period Pay periods and workweek for the System Operations will begin Sunday at 7:01 a.m. Pay periods and workweek for the Water Quality Control Plan Operators will begin Saturday at 6:01 a.m. Wages Wages will be based on the City of Palo Alto Compensation Plan, which may vary from time to time as mutually agreed upon. Overtime Under the 2080 Plan, the City will pay overtime for all hours worked in excess of 12 in any workday, 56 in any work week, or 2080 in 52 weeks, as the case may be. Overtime will also be paid for hours worked when an employee is called in to work other than their regularly-scheduled shift. The overtime rate of pay will be one and one-half times (or current contract overtime rate, if different) of the employee's regular rate of pay. All overtime worked will be paid to the employee. No compensatory time off for overtime will be allowed with the exception of Water Quality Control Operations. Relief Employees This provision only applies to the Utility Systems Operators. The five Operators share the relief week evenly as they rotate through the five week cycle. Relief employee(s) will be used within the 12-hours shift schedule only when relieving for the System Operators on shift. When not relieving, they will work four eight-hour shifts. When a vacation relief week results in a 36-hour or 48-hour week, the operator working said week shall be paid at one and one-half (1½) time their normal rate of pay for hours that exceed thirty two (32) hours. Relief Duties This provision only applies to the Utility Systems Operators. An employee who is scheduled to perform relief duties shall be available for duty in revolving shifts on any day of the week and may be assigned for relief in any shift without advance notice. Relief employees will be paid standby pay during their relief week. Standby This provision only applies to the Utility Systems Operators. An employee who is on relief duties is covering standby, and will be compensated according to Article VIII, Section 7 (a) of the Memorandum of Agreement. If the relief employee is on vacation or otherwise unavailable for relief duties, the employee(s) on their three or four-day off period will be first on standby. City of Palo Alto and SEIU Local 521 Page 83 of 88 Management reserves the right to utilize Management personnel as Operators on a short- term, as needed basis, if no Operator is available. Filling Vacant Positions Shift Changes Maximum Hours Worked Rest Period Holidays Sick Leave Floating Days Off City of Palo Alto and SEIU Local 521 Page 84 of 88 Vacation An employee's total entitlement will be converted to hours (eight hours = one day). A workday will consist of 12 hours, and employees taking vacation will be charged 12 hours of use. Two week notification is required for any scheduled time off. Only one person at a time may be scheduled off. It is the intention of the City that vacation be taken in units of one work week; however, with approval of his/her supervisor, an employee may use his/her accrued vacation in units of less than one work week. Shift employees shall be permitted to eat their meals during work hours and shall not be allowed additional time, therefore at City expense. Shift premium will be handled in accordance with the current Memorandum of Agreement between the City and the Union, Article VIII, Section 8. Time off for jury duty which occurs on a regularly scheduled workday will result in the employee being credited with up to 12 hours worked, for pay purposes. Employees called for jury duty who are working the evening portion of the 12-hour schedule will be placed, for payroll and scheduling purposes, on the day shift for each scheduled day such employee is required to report for jury duty, and will not be required to work the evening 12-hour shift before or after being required to report for jury duty. However, such employee shall return to work on the day shift upon being released from such duty if there are at least four hours remaining prior to the end of the day shift. All other provisions of Article XII, Section 5, of the current Memorandum of Agreement shall apply. 1. For employees in the following operations assigned to work schedules other than Monday through Friday, the calendar day will be considered the holiday for premium pay of in-lieu scheduling purposes: Communications Water Quality Control Animal Control Golf Course Utilities Services Landfill Open Space City of Palo Alto and SEIU Local 521 Page 85 of 88 Electric System Operator If December 24 and 31 fall on Sunday, then the preceding Friday will be designated for purposes of excused time off, except in the case of Community Services staff who may be scheduled to work on Saturday, in which case Saturday will be designated for purposes of excused time off. For Open Space and Library personnel, designation of excused time off will be based on Park and Library schedules and employee preference. APPENDIX E. COMMUNICATIONS DIVISION PROMOTIONS 1. Promotional opportunities within the Communications Division will be carried out in compliance with procedures set forth in Article VI, Section 5, of the Memorandum of Agreement between the City and SEIU Local 521, except that: a. In sub-paragraph (e) of Article VI, Section 5, the term "seniority" shall be defined as Division Seniority. •Division Seniority, for the purposes of shift scheduling, vacation scheduling and promotional opportunities will be calculated from an employee’s first day of employment in the division. Any unpaid leave that is not protected under FMLA or CFRA will not count as service days towards seniority, unpaid furlough, and unpaid closure time. Other areas of seniority not mentioned in this article will follow Article 6, Section 5, e “Seniority” of the Memorandum of Agreement between SEIU 521 and the City of Palo Alto. City of Palo Alto and SEIU Local 521 Page 86 of 88 APPENDIX F. RECOVERY OF CITY TRAINING COSTS In recognition of the extended training provided to affected employees, the Parties agree that the City may recover up to thirty percent (30%) of its cost for training employees, hired on or after July 1, 2012, in all Utilities Apprentice classifications and in the Park Ranger Apprentice classifications if the employee voluntarily terminates from the City or abandons his or her City employment before completing three years of City service in the Journeyman classification or Park Ranger classification. The amount recovered shall reasonably reflect the City’s cost for the training, but will exclude all wage or benefit costs, and will be prorated to reflect the portion of the thirty-six (36) month post-training service period remaining at the time of the employee’s termination. As of July 1, 2015 thirty percent (30%) of the City’s average cost for training employees in: •Lineperson/Cable Splicer Apprenticeship Program is $5600.00 •For the Field Service Representative, the City’s two year training cost is $ 6,000 •For Substation Electrician Apprenticeship Program is $4800.00 •For Street Lighting / Traffic Signals / fiber Apprentice program is: $1800.00 •For Park Ranger, the City’s two-year training cost is:$6,300 The employee will be required to sign an agreement providing for reimbursement to the City as provided above on the form attached hereto as Appendix H. This Agreement is entered into between ___________ (“Employee”) and the City of Palo Alto (the “City”), as authorized by the Memorandum of Agreement between the City and SEIU Local 521. RECITALS A. The purpose of this Agreement is to limit the City’s risk that it will invest substantial sums in the Employee’s training but potentially lose the value of that training if the employee terminates without rendering substantial journey level service to the City after training. B. The City may require reimbursement from Employee of thirty percent (30%) of the total training cost for _______position, subject to abatement when specified service requirements are met. C. On or about (date) City extended to Employee a conditional offer of employment in the position of _________(position), subject to Employee’s City of Palo Alto and SEIU Local 521 Page 87 of 88 agreement to complete the training necessary to perform the duties of _______ (position), under the terms of the training program. The ______(position) requires [description of training], which as of July 1, 2015 cost the City approximately $ over the course of the training. D. This agreement sets forth the Employee’s agreement to reimburse the City for the City’s investment in the Employee’s training if the employee voluntarily terminates from the City prior to the completion of thirty-six months of service following successful completion of the training. THEREFORE, the Parties agree to the terms set forth below: By signing this agreement, the Employee understands that s/he is bound by agrees to the following terms: 1. ____________________________________ (hereafter “Employee”) agrees that in training Employee for the position of _________________________________________, the City of Palo Alto (hereafter “City”) incurs a total cost of $___________. 2. Employee agrees that amounts recoverable under this agreement do not include Employee wage or benefit costs. 3. Employee agrees that in the event he/she voluntarily terminates or abandons his or her employment from the City prior to the completion of thirty-six (36) months of service following the successful completion of his or her apprenticeship, he/she will repay the City for the cost of training noted above, prorated to reflect the months of service the Employee has completed following successful completion of their training. Employee agrees that for the purpose of this agreement, “time of service” shall begin on the date following the successful completion of the Employee’s training. 4. Employee agrees that the aggregate amount of repayment due will be determined based upon the attached proration table. 5.Employee agrees that repayment shall be due and made in equal monthly installments over the twelve (12) months immediately following termination, on the first of each such month. 6. If Employee does not fully reimburse the City for the amounts due when due, the entire aggregate amount owed will become immediately due, the employee will be deemed in default on this agreement and the City may initiate legal City of Palo Alto and SEIU Local 521 Page 88 of 88 proceedings to collect said amounts. Employee will be responsible for all reasonable collection costs and attorney fees incurred by the City in undertaking such proceedings. The City may elect to forbear taking such action to allow Employee the opportunity to become current on the debt. Such forbearance will not alter the Employee’s default status or adversely affecting the City’s right to later initiate proceedings for recovery pursuant to this Agreement. 7. This agreement shall be effective on the date listed below. DATED: ___________________ ______________________________________ Employee ______________________________________ Title, City of Palo Alto CITY OF PALO ALTO Memorandum of Agreement City of Palo Alto and Service Employees International Union (SEIU) Local 521 January 1, 2025 – December 31, 2027 City of Palo Alto and SEIU Local 521 Page 1 of 85 TABLE OF CONTENTS PREAMBLE........................................................................................................................6 ARTICLE 1 – RECOGNITION..........................................................................................6 Section 1 - Recognition...................................................................................................6 Section 2 - Protection of Unit..........................................................................................6 ARTICLE 2 - NO DISCRIMINATION..............................................................................7 Section 1 – Discrimination..............................................................................................7 Section 2 - Right to Join the Union.................................................................................7 ARTICLE 3 – UNION MEMBERSHIP..............................................................................7 Section 1 - Notice............................................................................................................7 Section 2 – Payroll Deductions........................................................................................8 Section 3. Certification of Union Membership................................................................8 Section 4. Indemnification, Defense and Hold Harmless................................................9 Section 5 - Documentation..............................................................................................9 Section 5 - Bulletin Boards and Departmental Mail........................................................9 Section 6 - Access to Union Representatives................................................................10 Section 7 - Meeting Places............................................................................................10 Section 8 - Notification to the Union.............................................................................10 Section 9 - Union Logo..................................................................................................10 Section 10 - Public Notice.............................................................................................11 Section 11 - Use of Agency Reports..............................................................................11 Section 12 - Job Postings...............................................................................................11 Section 13 - Contracting Out.........................................................................................11 ARTICLE 4 – STEWARDS AND OFFICERS.................................................................11 Section 1 - Union Officers.............................................................................................11 Section 2 - Number of Stewards....................................................................................11 Section 3 - Release Time...............................................................................................12 Section 4 - Advance Notification Before Leaving Work Location...............................12 Section 5 – Release Time..............................................................................................12 Section 6 - Designated Union Space.............................................................................13 Section 7 - Union Officers and Release Time...............................................................13 ARTICLE 5 - REDUCTION IN FORCE..........................................................................13 Section 1 - Attrition.......................................................................................................13 City of Palo Alto and SEIU Local 521 Page 2 of 85 Section 2 - Advance Notice...........................................................................................13 Section 3 - Order of Layoff...........................................................................................13 Section 4 - Seniority/Bumping Rights...........................................................................14 Section 5 - Re-Employment List...................................................................................14 Section 6 - Sick Leave Balances....................................................................................14 Section 7 - Hourly Employees Performing Duties........................................................14 ARTICLE 6 - PERSONNEL ACTIONS...........................................................................15 Section 1 - Probation.....................................................................................................15 Section 2 - Personnel Evaluations.................................................................................15 Section 3 - Personnel Files............................................................................................15 Section 4 - Release of Information................................................................................16 Section 5 - Promotional Opportunities..........................................................................16 Section 6 - Rights...........................................................................................................18 Section 7 - Apprentice Positions....................................................................................18 Section 8 - Rotation.......................................................................................................19 ARTICLE 7 - PAY RATES AND PRACTICES..............................................................19 Section 1 - Salary...........................................................................................................19 Section 2 - Step Increases..............................................................................................19 Section 3 - Working Out of Classification....................................................................19 Section 4 - Classification Changes................................................................................20 Section 5 - Reclassification Requests............................................................................20 Section 6 - Assignment to a Lead Position....................................................................21 Section 7 - Total Compensation and Survey Database..................................................21 Section 8 - Direct Deposit..............................................................................................22 ARTICLE 8 - HOURS OF WORK, OVERTIME, PREMIUM PAY...............................22 Section 1 - Work Week and Work Day.........................................................................22 Section 2 - Overtime Work............................................................................................23 Section 3 - Work Shifts..................................................................................................25 Section 4 - City-Paid Meals...........................................................................................25 Section 5 - Break Periods..............................................................................................27 Section 6 - Clean-Up Time............................................................................................27 Section 7 - Standby Pay, Call-Out Pay..........................................................................27 Section 8 - Night Shift Premium...................................................................................27 City of Palo Alto and SEIU Local 521 Page 3 of 85 Section 9 - Bilingual Premium......................................................................................28 Section 10 - Communications Training Officer (CTO) Compensation.........................28 ARTICLE 9 - UNIFORMS AND TOOL ALLOWANCES..............................................28 Section 1 - Uniforms......................................................................................................28 Section 2 - Tool Allowance...........................................................................................32 Section 3 - Shoe Allowance...........................................................................................32 Section 4 – Certifications...............................................................................................32 Section 5 - Weather Protection......................................................................................37 ARTICLE 10 - HOLIDAYS..............................................................................................37 Section 1 - Fixed Holidays............................................................................................37 Section 2 - Pay for Fixed Holidays................................................................................38 Section 3 - Work on Fixed Holidays.............................................................................38 Section 4 - Variations in Work Week............................................................................38 Section 5 - Floating Days Off........................................................................................39 ARTICLE 11 - VACATIONS...........................................................................................39 Section 1 - Vacation Accruals.......................................................................................39 Section 2 - Holiday Falling During Vacation................................................................40 Section 3 - Illness During Vacation...............................................................................40 Section 4 - Accrued Vacation Pay for Deceased Employees........................................40 Section 5 - Effect of Extended Military Leave..............................................................40 Section 6 - Vacation at Termination..............................................................................41 Section 7 - Vacation Cash Out.......................................................................................41 ARTICLE 12 - LEAVE PROVISIONS............................................................................41 Section 1 - Sick Leave...................................................................................................41 Section 2 - Bereavement Leave.....................................................................................43 Section 3 - Military Leave.............................................................................................43 Section 4 - Leave Without Pay......................................................................................43 Section 5 - Jury Duty and Subpoenas............................................................................44 Section 6 - Time Off to Vote.........................................................................................44 Section 7 - Disapproval of Leave of Absence...............................................................44 Section 8 - Personal Business Leave Chargeable to Sick Leave...................................44 Section 9 - Return to Assignment..................................................................................44 ARTICLE 13 - WORKERS' COMPENSATION INSURANCE......................................45 City of Palo Alto and SEIU Local 521 Page 4 of 85 Section 1 - Industrial Temporary Disability..................................................................45 Section 2 - Vocational Rehabilitation Benefits for Permanently Disabled Employees.45 ARTICLE 14 - BENEFIT PROGRAMS...........................................................................45 Section 1 - Health Plan..................................................................................................45 Section 2 - Dental Plan..................................................................................................48 Section 3 - Vision Care..................................................................................................49 Section 4 - Life Insurance..............................................................................................49 Section 5 – Long Term Disability Insurance.................................................................49 Section 6 - Effective Date of Coverage for New Employees........................................49 Section 7 - Dual Coverage.............................................................................................49 Section 8 - Deferred Compensation...............................................................................50 Section 9 – Dependent Care Assistance Program and Medical Flexible Spending Accounts........................................................................................................................50 ARTICLE 15 – RETIREMENT........................................................................................50 Section 1 - PERS Continuation......................................................................................50 Section 2 - Employee Share...........................................................................................51 Section 3. Employer Share............................................................................................52 ARTICLE 16 - COMMUTE INCENTIVES AND PARKING.........................................52 Section 1 - Commute Incentive.....................................................................................52 Section 2 – Parking Lot Security – Municipal Service Center......................................53 Section 3 – Bicycle Lockers and Motorcycle Parking...................................................53 ARTICLE 17 - PHYSICAL EXAMINATIONS...............................................................53 ARTICLE 18 – SAFETY..................................................................................................54 Section 1 - Health and Safety Provisions......................................................................54 Section 2 - Union Cooperation......................................................................................54 Section 3 - Safety Committees and Disputes.................................................................54 ARTICLE 19 - GRIEVANCE and APPEAL PROCEDURE...........................................55 Section 1 - General Provisions......................................................................................55 Section 2 – Definitions..................................................................................................55 Section 3 - Conduct of Grievance Procedure or Appeal of Disciplinary Action Procedure.......................................................................................................................55 Section 4 - Grievance and Appeal Procedure................................................................57 ARTICLE 20 - UNSATISFACTORY WORK OR CONDUCT AND DISCIPLINARY ACTION............................................................................................................................59 City of Palo Alto and SEIU Local 521 Page 5 of 85 Section 1 - Preliminary Notice of Discipline.................................................................59 Section 2 - Skelly Meeting............................................................................................60 Section 3 – Appeals.......................................................................................................60 ARTICLE 21 - NO ABROGATION OF RIGHTS...........................................................60 ARTICLE 22 - OUTSIDE EMPLOYMENT....................................................................61 ARTICLE 23 – WORK STOPPAGE AND LOCKOUTS................................................61 ARTICLE 24 - PROVISIONS OF THE LAW..................................................................61 Section 1 - Conformity and Separability of Provisions.................................................61 Section 2 - Merit Rules and Regulations.......................................................................61 Section 3 - Resolution....................................................................................................61 ARTICLE 25 - PROFESSIONAL DEVELOPMENT......................................................61 ARTICLE 26 - COST REDUCTION PROGRAMS.........................................................63 ARTICLE 27 – TERM......................................................................................................63 ARTICLE 28 - APPRENTICESHIP REOPENER APPENDIX A....................................................................................................................66 APPENDIX B. APPRENTICESHIPS...............................................................................67 APPENDIX C. DEPT/DIVISION CLASSIFICATION WORKDAY OR WORKWEEK VARIATION.....................................................................................................................70 APPENDIX D. IN-LIEU PREMIUMS.............................................................................75 APPENDIX E. COMMUNICATIONS DIVISION PROMOTIONS...............................76 APPENDIX F. RECOVERY OF CITY TRAINING COSTS...........................................77 APPENDIX G. RECOVERY OF TRAINING INVESTMENT AGREEMENT.............78 City of Palo Alto and SEIU Local 521 Page 6 of 85 2023 - 2024 MEMORANDUM OF AGREEMENT This Memorandum of Agreement (hereinafter “MOA” is entered into by the City of Palo Alto (hereinafter referred to as the “City”) and Local 521 Service Employees’ International Union, CTW (hereinafter referred to as the “Union”). For the purposes of this MOA “employee” shall mean an employee assigned to a classification within the SEIU General Employee bargaining unit. This MOA is pursuant and subject to Sections 3500-3510 of the Government Code of the State of California and Chapter 12 of the City of Palo Alto Merit Rules and Regulations. Section 1 - Recognition Pursuant to Sections 3500 - 3510 of the Government Code of the State of California and Chapter 12 of the City of Palo Alto Merit System Rules and Regulations, the City recognizes the Union as the exclusive representative of a representation unit consisting of all regular full and part-time employees in the classifications listed in Appendix A attached hereto. This unit, shall for purposes of identification, be titled the SEIU General Employees bargaining unit (hereinafter “General Unit”). Section 2 - Protection of Unit No supervisor will perform the work of an employee in the General Unit provided that there is an employee available who regularly performs such work. This does not preclude a supervisor from performing work of a minor nature or during bona fide emergencies or on a standby status when willing and qualified unit employees do not live within a reasonable response time of their work location. Supervisory personnel shall be called out to perform unscheduled work only when SEIU General unit employees are unavailable to perform such work or in cases of bona fide emergencies as defined in Article VIII, Section 2. In cases of bona fide emergencies, SEIU General Unit employees shall be called out to complete the necessary work after the immediate emergency situation has been reasonably contained. City of Palo Alto and SEIU Local 521 Page 7 of 85 ARTICLE 2 - NO DISCRIMINATION Section 1 – Discrimination The City of Palo Alto is committed to providing a work environment free from all forms of harassment and discrimination and agrees not to harass or discriminate against employees or applicants based on such characteristics such as race, ethnicity, color, religion, political affiliation, veteran status, military status, national origin, ancestry, disability, medical condition, marital status, age, pregnancy, sex, sexual orientation, gender identity and gender expression, or the perception that any person has such characteristic, and any other characteristic protected by federal or state law or City Ordinance. The City of Palo Alto will not harass or discriminate against employees from exercising their rights to organize in accordance with the Meyers-Milias Brown Act. Complaints of harassment or discrimination may be reported to any of the following individuals: •Immediate supervisor •Any supervisor or manager within or outside of the department •Department Head •Human Resources Director Complaints will be investigated in accordance with the City’s Policy and Procedures. Section 2 - Right to Join the Union The City and the Union agree to protect the rights of all employees to exercise their free choice to join the Union and to abide by the express provisions of applicable State and local laws. Section 1 - Notice a) When a person is hired in any of the covered job classifications, the City shall notify that person that the Union is the recognized bargaining representative for the employee and give the employee a packet of information provided by the Union, and will maintain a current copy of the Memorandum of Agreement on the City’s website. b) When a group new employee orientation is held for employees of the bargaining unit, a union representative shall be permitted to make a presentation to such bargaining unit City of Palo Alto and SEIU Local 521 Page 8 of 85 employees during the employee orientation for the purpose of explaining matters of representation. The presentation shall not exceed 30 minutes. Management will not be present during the Union presentation. The City will provide release time to a steward or Union Officer for purposes of making the presentation. In addition, a non-City employee Union representative will also be given access to attend for the purposes of making the presentation. City of Palo Alto and SEIU Local 521 Page 9 of 85 Section 3 - Certification of Union Membership City of Palo Alto and SEIU Local 521 Page 10 of 85 membership meetings, results of elections and reports of minutes of Union meetings. Any other material must have prior approval of the Human Resources Office. Action on approval will be taken within 24 hours of submission. The Union may send email messages only for the purposes set forth above. The IT Department will maintain the SEIU list and keep it current. The Union access to email is based on the following conditions: 1) emails to the SEIU list will be copied to the Human Resource Director, or designee at distribution; 2) emails to the SEIU list will only be sent by the SEIU Chapter Chair, Vice Chair, Chief Steward (s) or Secretary, 3) a maximum of 52 emails may be sent per year and a maximum of 12 emails may be sent by the SEIU Chapter Secretary. City of Palo Alto and SEIU Local 521 Page 11 of 85 be consistent with Article 5 – Reduction in Force. c) Vacancies and Temporary Personnel The City agrees to notify SEIU Local 521 in writing when any irregular, temporary, hourly, provisional, special or extra help employee who consistently performs work typical of the SEIU Local 521 bargaining unit exceeds 1,000 hours of work within a 18-month period. The City agrees to notify SEIU Local 521 in writing when any position covered by this agreement is left vacant for more than 60 days. The City will notify SEIU and, upon request, meet regarding the conversion of any long term and on-going hourly positions which the City proposes to convert to full time positions through the budget process. Section 10 - Public Notice The City shall make available to the Union, in a timely manner, copies of all City Council meeting agendas, minutes and schedule of meetings. These materials will be available online via the City’s website. Section 11 - Use of Agency Reports Upon request, the City shall provide to the Union reports by department on the use of agency temporaries filling representation unit vacant positions, or doing work similar to that of representation unit classifications. Section 12 - Job Postings The City shall incorporate the requirements of this Article when publicizing job announcements for classifications covered by this Memorandum of Agreement. Section 13 - Contracting Out The City, through the labor management process, will keep the Union advised of the status of the budget process, including any formal budget proposal involving the contracting out of SEIU bargaining unit work traditionally performed by bargaining unit members at least thirty (30) days prior to the release of the City Manager’s proposed budget. Prior to contracting out work, the City will attempt to fill vacant positions within the classification which normally performs the work to be contracted out; and attempt to use voluntary overtime to reduce or eliminate the need to contract out. City of Palo Alto and SEIU Local 521 Page 12 of 85 The City will notify the Union in writing at least ninety (90) days prior to contracting work which has been traditionally performed by bargaining unit members. Within the ninety (90) day period of contracting out, both parties may offer alternatives to contracting out and meet and confer on the impact of such contracting out of a bargaining unit employee work. ARTICLE 4 – STEWARDS AND OFFICERS City of Palo Alto and SEIU Local 521 Page 13 of 85 b) A meeting with Management. City of Palo Alto and SEIU Local 521 Page 14 of 85 additional subject matter expert or experts would be helpful to the discussion, the Union shall notify the Human Resources Director, or designee and request release time for those individuals. Additional release time will be by mutual agreement. ARTICLE 5 - REDUCTION IN FORCE City of Palo Alto and SEIU Local 521 Page 15 of 85 Section 4 - Seniority/Bumping Rights City of Palo Alto and SEIU Local 521 Page 16 of 85 Section 7 - Hourly Employees Performing Duties ARTICLE 6 - PERSONNEL ACTIONS City of Palo Alto and SEIU Local 521 Page 17 of 85 by the Union. Decisions regarding evaluation appeal shall be made in writing within ten (10) working days following the review meeting. City of Palo Alto and SEIU Local 521 Page 18 of 85 designation, the recruitment will proceed and the Parties will discuss flexible staffing at Labor Management; (3) if the Union does not request to meet over the designation or if the Parties reach agreement to designate the position as Flexibly Staffed, the City will designate the position as Flexibly Staffed. Posting. Promotional opportunities for classifications within the representation unit will be posted for at least one (1) week prior to selection. Outside recruitment may be used for promotional openings and may begin at the time of posting, or any time thereafter. Internal Candidate Eligibility. All non-probationary representation unit employees are eligible to apply for posted promotional opportunities, except that Management may waive this requirement for all probationary employees within the department where the promotional opportunity occurs. Selection. The selection procedure for each promotional opening will be determined and administered by the Human Resources Department in consultation with the requisitioning department. Selection procedure and job description information will be available at the Human Resources Office and on the City’s career website at the time of posting. Efforts will be made to standardize tests and procedures where standardization is feasible and appropriate. Any tests used shall be reasonably predictive of success in the classification, and tests not be biased with respect to race, sex, sexual orientation, religion, creed, political affiliation, color, national origin, ancestry, or age. Internal candidates who successfully complete the screening and testing process shall be granted an interview. The granting of an interview does not guarantee that the internal candidate will be selected for the position. Selection procedures may include any or all of the following phases: Application. Both inside and outside candidates must complete a City of Palo Alto application form specified by the Human Resources Department. Applications must be submitted to the Human Resources Office. Screening. Applications will be screened by the Human Resources Department and, in some circumstances, a manager from the Department seeking to fill a position to ascertain whether candidates meet minimum requirements as outlined in the job description. Internal candidates deemed not to meet minimum requirements may submit additional qualification information writing within three working days of notification of requirement deficiency. Performance Testing. Performance tests, such as typing, machinery or vehicle operation, skills demonstration, physical agility, etc., will be qualifying. Pass-fail City of Palo Alto and SEIU Local 521 Page 19 of 85 points will be announced in advance for qualifying tests. If requested in writing prior to the test, performance test may be witnessed by Union steward. 4)Written Tests. Written achievement or aptitude tests will be qualifying. Pass-fail points will be announced in advance for qualifying tests. 5)Interviews, Appraisals. Interviews may be conducted individually or by interview boards and will be qualifying. Interview boards shall be composed of qualified and unbiased people. Where interview boards are used, Management will include at least one bargaining unit employee on each board. If individual interview or an interview board is used, a majority of the individuals or board members must recommend a candidate in order for the candidate to qualify for appointment. Performance appraisals written by candidates' supervisors may be used as indicated in the selection procedure. d)Recommended Candidates. Candidates who successfully complete all phases of the selection procedure will be recommended to the appointing authority. e)Seniority. Seniority, for purposes of this Article, will be based on current service hire date of record in a regular classification with no adjustment for leaves of absence. Seniority ties will be determined in favor of the employee with the lowest employee number last four digits. Exceptions to this subsection may be established by mutual agreement on a departmental or divisional basis. Such exceptions are listed in Appendix E. f)Appointment. The appointing authority will make appointments from among those recommended candidates who are most qualified as determined by objective review of selection procedure results and background materials. Where appointments are made from only internal candidates who are equally qualified as determined by objective review of selection procedure results and past performance, seniority will be the determining factor in promotional appointments. g)Violations. Any violation of this Article may be appealed to the Human Resources Director in Step III of the grievance procedure. h) Eligibility List. Human Resources may maintain an eligibility list of those applicants who interviewed and were ranked within the top three (3). Candidates on an eligibility list will be considered for any vacant position in the classification for which the list exists, without the need to submit a new application under section (c)(1) of this provision. City of Palo Alto and SEIU Local 521 Page 20 of 85 Section 6 - Rights ARTICLE 7 - PAY RATES AND PRACTICES City of Palo Alto and SEIU Local 521 Page 21 of 85 following entrance onto a salary step. Step increases shall be effective on the first day of the payroll period in which the time requirements have been met. City of Palo Alto and SEIU Local 521 Page 22 of 85 Section 5 - Reclassification Requests City of Palo Alto and SEIU Local 521 Page 23 of 85 the proposed changes shall revert to the status quo as it existed before those changes in duties occurred or were proposed. d) An employee may submit a request for reclassification for the same classification no more than once every twenty-four (24) months. Section 6 - Assignment to a Lead or Senior Position All vacancies in lead positions shall be filled in accordance with Article VI, Section 5. The pay range for the lead position shall be a minimum of seven (7%) percent above the pay step of the highest paid employee on the crew. All vacancies in senior positions shall be filled in accordance with Article 6, Section 5. The top step of the pay range for the senior position shall be a minimum of seven (7%) above the top step of the pay range for the position below it in the series. Departmental exceptions for filling lead positions on a rotational basis for training and development purposes may be arranged by mutual agreement of the Union and individual City departments. Section 7 - Total Compensation and Survey Database Management and the Union agree to a compensation survey database structure which identifies specific benchmark classifications for job families, classifications within the job families of each benchmark classification, survey agencies and survey classification matches. Survey Cities include: Alameda Hayward San Mateo Berkeley Mountain View Santa Clara Daly City Redwood City S. San Francisco Fremont San Jose Sunnyvale If the employer list will not permit the production of a survey report that includes data from at least four (4) employers that employ employees in a classification comparable to the classification surveyed by the City, neither party is precluded from bringing forward information on other employers in the relevant recruitment area that employ workers in a comparable classification so that data from at least five (5) surveyed employers will be included in the study, if feasible. Such employer may include any public or private employer. The database is intended to provide one source of information concerning how the compensation paid to employees in bargaining unit job classifications compares to that paid by other employers. The City will update the survey database and send the Union a City of Palo Alto and SEIU Local 521 Page 24 of 85 copy no later than August 31, 2024. This survey will be considered in connection with special adjustment proposals in successor agreement negotiations. By agreeing to a survey database, neither the Union nor the City is under obligation to propose or agree to special adjustments. ARTICLE 8 - HOURS OF WORK, OVERTIME, PREMIUM PAY City of Palo Alto and SEIU Local 521 Page 25 of 85 Section 2 - Overtime Work City of Palo Alto and SEIU Local 521 Page 26 of 85 two (2) hours before the start of their regular work shift (e.g., for an employee with an 7:00am start time between the hours of 11:00pm and 5:00am), the employee shall be entitled to a six (6) hour rest period commencing at the time of release from duty. If the rest period overlaps the employee’s regular work shift in whole or in part, they will be paid at the straight-time rate for the time that falls within their regular work shift. The City may require an employee to work during their designated rest period. However, in that event, the employee will be paid for the rest period plus straight time for the hours actually worked during the rest period (i.e., double time for hours worked during the rest period). If the rest period overlaps into the second half of the work day, the employee may be given (with supervisor approval) the remaining time off (up to a maximum of 3 hours) at the straight time rate of pay. Any portion of the rest period falling within the employee’s work shift will be considered as hours worked and compensated at the straight time rate. e) If non-emergency overtime is canceled without at least 40 clock hours’ notice, the City shall pay affected employees two (2) hours' pay at time and one-half. f) Employees working overtime who are too fatigued to continue or return to work, for safety reasons will be released from duty without compensation. g) Part-time Employees. Authorized hours worked by an employee in a budgeted, part-time position in excess of the scheduled hours of work of the position shall be compensated at the employee’s applicable hourly rate up to the maximum of non-overtime hours in the work period applicable to the employee. If a part-time employee works more than 80 hours in a pay period then overtime will be paid in accordance with the FLSA. Section 3 - Work Shifts All employees shall be assigned to work shifts with scheduled starting and quitting times. Should conditions necessitate a change in starting and quitting times, the Union will be notified ten (10) working days in advance and permitted to discuss such changes with the City. This, however, shall not preclude the City's right to effect schedule changes dictated by operational necessity. This section does not apply to overtime scheduling. Section 4 - City-Paid Meals In accordance with City policy, the City of Palo Alto bases its meal reimbursement limits on the U.S. General Services Administration (GSA) per diem rates. Those rates are City of Palo Alto and SEIU Local 521 Page 27 of 85 adjusted every October. For overnight travel per diem rates, the City reimburses based on the rates applicable to the destination of travel, as provided by the GSA at http://www.gsa.gov/portal/category/100120. For non-travel meals, the City will reimburse up the maximum GSA rates for the Palo Alto area. Receipts are required to back-up these expenses. For purposes of this section, emergency overtime is defined as unplanned overtime arising out of situations involving real loss of service or property or personal danger. The City agrees to reimburse for meals based on GSA maximum rates for the Palo Alto Area and will provide meals in the following emergency overtime situations: City of Palo Alto and SEIU Local 521 Page 28 of 85 d) With regard to (a) and (b) above, in the event an employee is to be provided a meal or meals pursuant to this section and such meal(s) are not provided due to working conditions, the employee shall have the option of receiving for each meal not provided an additional one hour of overtime compensation in lieu of such meal. This hour will not be considered as time worked or part of the rest period, but will be applied to qualify for the rest period. e) Emergency overtime meals for Public Safety Dispatchers. The Police Department will provide meals to employees in an emergency overtime situation involving real or potential loss of service or personal danger. 1) When an employee is called back and is on duty for a period of three consecutive hours, and thereafter at intervals of five hours, but not more than six hours, until the continuous overtime assignment ends. 2) When an employee is held over on duty so that their overtime assignment extends two hours after shift end, and thereafter at intervals of five hours, but not more than six hours, until the continuous overtime assignment ends. 3) When an employee is called out two hours or more before a regularly scheduled shift. The employee will be entitled to two meals, the second meal will be consumed on the employee's own time. No in-lieu pay will be made for meals not taken. 4) When recalled two hours or less after the end of a regular shift, unless assigned to standby. f) Non-emergency overtime meals for Public Safety Dispatchers. The Police Department will provide meals to employees in non-emergency situations where the assignment extends more than two hours after the regular or overtime shift end and at intervals of five hours thereafter. If the City is unable to provide a meal, the City agrees to reimburse for meals based on GSA maximum rates for the Palo Alto Area. This policy only applies when an employee is held over, either voluntary or mandated, on duty beyond a scheduled regular or overtime shift. Section 5 - Break Periods All employees shall be granted a break period or coffee break limited to 15 minutes during each four hours of work. Departments may make reasonable rules concerning break period scheduling. Break periods not taken shall be waived. City of Palo Alto and SEIU Local 521 Page 29 of 85 Section 6 - Clean-Up Time All employees whose work causes their person or clothing to become soiled shall be provided with reasonable time before lunch and at shift end for wash-up purposes. Section 7 - Standby Pay, Call-Out Pay a)Standby Compensation Employees performing standby duty shall be compensated at the daily rates established below: On a Regular Workday (14 to 16-hours of Standby)$70 On a Regular Day Off (e.g., Weekends and Holidays) (24-hours of Standby) $100 In the event of a declared City emergency, this section applies to standby assigned in accordance with applicable department policy. b)Minimum Call-Out Pay Employees who are called out to work after leaving the worksite for the day shall be compensated for at least two hours' pay from the time of the call-out at the appropriate overtime rate. Employees who work more than two (2) hours after being called out shall be compensated for all hours worked outside of their normal shift at the overtime rate. Employees will receive two (2) hours of pay for each callout. However, they will not receive callout pay when they are already in paid status (e.g., when a second call comes in within two (2) hours after the initial callout), except as provided in (c) below. Effective the first full pay period following the later of January 1, 2025 or City Council approval of the MOA, the two-hour minimum shall apply to employees called out to work while earning pay for being in a standby status. Section 8 - Night Shift Premium Night Shift premium is paid at a rate of 6% of an employee’s base hourly rate. Night Shift premium is paid only for hours actually worked between 6:00 p.m. and 8:00 a.m. Employees who regularly work night shifts shall receive appropriate night shift premiums, City of Palo Alto and SEIU Local 521 Page 30 of 85 relating to night shift hours worked, in addition to base pay for holidays, sick leave and vacation. Upon approval by the Human Resources Director, the City is required to arrange for language testing within four (4) months of the approval. Employees receiving bilingual pay must provide interpreter services upon request. City of Palo Alto and SEIU Local 521 Page 31 of 85 only for those hours spent as a CTO training a probationary dispatcher while on-duty in the Dispatch Center. ARTICLE 9 - UNIFORMS AND TOOL ALLOWANCES City of Palo Alto and SEIU Local 521 Page 32 of 85 Industrial Waste Investigator Instrumentation Electrician Laboratory Technician, Water Quality Control Line Person/Cable Splicer Line Person/Cable Splicer - Lead Mail Services Specialist Maintenance Mechanic/Maintenance Mechanic, Water Quality Control Mechanical Unit Repairer Meter Reader Meter Reader – Lead Mobile Service Technician Motor Equipment Mechanic - Lead Motor Equipment Mechanic Offset Equipment Operator - Lead Offset Equipment Operator Park Maintenance Assistant Community Services Officer Park Maintenance Person Park Crew - Lead Park Maintenance - Lead Park Ranger Parks & Open Space Assistant Police Records Specialist Refuse Disposal Attendant Senior Chemist Senior Industrial Waste Inspector Senior Industrial Waste Investigator Senior Instrumentation Technician Senior Operator, Water Quality Control Senior Mechanic, Water Quality Control Senior Park Ranger Sprinkler System Repairer Street Maintenance Assistant Storekeeper Storekeeper-Lead Street Sweeper Operator Traffic Control Maintainer - Lead Traffic Control Maintainer II Traffic Control Maintainer I Tree Trimmer-Line Clearer Tree Maintenance Assistant Tree Trimmer-Line Clearer Assistant Tree Trimmer-Line Clearer - Lead City of Palo Alto and SEIU Local 521 Page 33 of 85 Tree Maintenance Person Truck Driver Utilities Compliance Technician Utility Field Service Representative Utility Installer/Repairer Utility Installer/Repairer Assistant Utility Installer/Repairer – Lead Utility Locator Water Meter Cross Connection Technician Water System Operator - Lead Water System Operator Water System Operator I Water System Operator II Water Quality Control Plant Operator b) Coveralls will be made available for occasional use as needed to protect clothing for the following classifications and any positions necessary or required as determined by management. Building Inspector Building Inspector Specialist Building Service Person - Lead Cable Splicer Assistant Chief Electric Underground Inspector Electrical Assistant Electrician Facilities Mechanic/Painter Heavy Equipment Operator Lineperson/Cable Splicer Park Ranger Senior Park Ranger Utility Field Service Representative Sprinkler System Repairer Utility Installer Assistant Utility Installer/Repairer Utility Installer/Repairer - Lead c) Employees required to wear uniforms shall be provided suitable change rooms and lockers where presently provided. City of Palo Alto and SEIU Local 521 Page 34 of 85 d) Employee clothing seriously damaged or destroyed in conjunction with an industrial injury will be reasonably replaced by the City. Any other claims alleging City liability may be filed with the City Attorney. e) Except in the Utilities Division, the City will make available, as an alternative to the shirts currently provided under Section 1(a), six (6) cotton polo shirts. Employees in the Utilities Division will be provided with six (6) long-sleeve shirts and two polo shirts. Employees will be responsible for laundering the shirts. Damaged or otherwise unwearable shirts will be returned to the employee’s supervisor and replaced by the City. f) Employees are responsible for laundering Park Ranger and Senior Park Ranger uniforms. g) The City will meet and confer with the Union regarding any mandated changes to uniforms. h) In accordance with California Code of Regulations (C.C.R.) section 571(a) the estimated value of City provided uniforms is $21.28 per pay period. Section 2 - Tool Allowance a) Mechanics in Equipment Maintenance, Park Maintenance Lead, Motorized Equipment Mechanic and Mobile Service Technician shall be paid a tool allowance of $1000 annually upon verification of purchase by the employee. b) Parties will meet and confer to determine if additional classifications require tool allowance. Section 3 - Shoe Allowance a) Safety Shoes. The City will pay the vendor or reimburse full-time employees up to $400 per fiscal year for the cost of job-related safety shoes upon verification of such purchase by the employee. b) Walking Shoes. The City will reimburse employees 75% of the cost of job-related walking shoes for any positions necessary or required as determined by management including Meter Reader and Meter Reader-Lead, in an amount not to exceed $300.00 per year. A walking shoe is a durable work shoe/boot (non steel-toed), is ankle supporting; oil, gas and slip resistant; waterproof or water resistant; lightweight and durable; and also provides hard surface cushioning. City of Palo Alto and SEIU Local 521 Page 35 of 85 c) Additional Boot Reimbursements. Employees in the Park Ranger Classification will receive an additional $200 per year to account for the additional cost of wildland fire boots for a total Safety Shoe reimbursement of $600. Employees in the Lineperson series will receive an additional $200 per year to account for the additional cost of climbing boots for a total Safety Shoe reimbursement of $600. Section 4 – Certifications The parties agree to retain the current list of required certifications below. Employees who are required to maintain commercial driver's licenses shall have costs for medical examinations paid by: a) Completing an examination through their PEMHCA provider. After benefits have been paid by the PEMHCA provider, upon presentation of proper documentation, the City will reimburse any remaining costs, or b) Completing an examination at the Workforce Medical clinic or other City designated clinic. Employees may use paid leave for attendance at scheduled medical examinations. Employees shall be permitted to use up to two hours of regular City-paid time for attendance at biannual medical examinations. The scheduling of such time shall be preauthorized by the employee’s supervisor. c) The City will pay special registration and/or certification fees which are required by Management. During the term of this agreement, the City and the Union may, by mutual agreement, review, add or delete classifications and/or required certifications listed below: Classification Requirement Facilities Technician Aquatics Facility Operator Certificate Building Inspector/ Buildg Inspection Specialist Certificate as stated in job description Cathodic Technician Corrosion Technician by the National Assoc. of Corrosion Engineers Engineer Professional Professional Engineer Cert. (for step E) Equip Maint Serv Pers. Forklift Operator Cert. (OSHA-approved) Golf Course Maint Pers. Qualified Applicators' License Heavy Equipment Operator Crane Operation Certificate City of Palo Alto and SEIU Local 521 Page 36 of 85 (Utilities and Electric) Indust. Waste Inspector Backflow Prevention Device Tester Inspector Field Services, Utilities D1 (DOH) Hired before July 1, 2012 Installer/Repairer Series D1 (DOH) Maintenance Mechanic Crane Operator Certification (Water Quality) Mech. Unit Repairer Welding Certificate Motor Equip Mechanic and Lead EMS, ASE Planner, Associate Planner AICP Senior Planner Public Safety Dispatcher POST Basic Dispatcher EMD Public Safety Dispatcher, Lead POST Basic Dispatcher POST Supervision EMD Senior Operator, WQC Grade III Wastewater Treatment Plant Operator Certification Surveyor, PW Licensed Land Surveyor Tree Trimmer/Line Clearer Certified Tree Worker and/or Qualified Line Clearance/Tree Trimmer Cert. (OSHA-approved) Tree Trimmer/Line Clearer-Lead Certified Arborist Utilities Install/Rep series Polyethylene Fusing Cert. Gas Operator Certification (DOT) City of Palo Alto and SEIU Local 521 Page 37 of 85 Veterinarian Technician Animal Health Tech. Certification Water System Operator I Grade DI – Water Distribution Operator Water System Operator II Grade DII – Water Distribution Operator & Grade TII – Water Treatment Operator Senior, Water System Operator Grade DIII – Water Distribution Operator & Grade TIII Water Treatment Operator WQC Plant Operator I Grade I Wastewater Treatment Operator Certification. WQC Plant Operator II Grade II Wastewater Treatment Operator Certification WQC Plant Operator Trainee Grade I Wastewater Treatment Operator Certification Water Meter Cross- Connection Technician Backflow Prevention Tester Certification d) The City will pay for the Department of Motor Vehicles (DMV) licensing fees for all employees required to maintain a Commercial Driver's License in accordance with the California Vehicle Code and applicable laws prescribed by the Department of Transportation. e) Effective the first full pay period following the later of January 1 or the adoption of the MOA, and upon verification that the certification is held: City of Palo Alto and SEIU Local 521 Page 38 of 85 Classification Certification(s) Amount Utility Project Coordinator* WGW Utilities Field Inspector* Backflow Tester and Specialist $4,000, and upon recertification Heavy Equipment Operator Electric Heavy Equip Operator Maintenance Mechanic Lineperson/Cable Splicer Lineperson/Cable Splicer Lead Crane Operator (j)$3,000 Annually Associate Engineer Assistant Engineer Associate Power Engineer Assistant Power Engineer Engineer Tech I Engineer Tech II Engineer Tech III Professional Engineer $4,000 Building Inspector Specialist Building Inspector Senior Building Inspector Each certification above minimum to a max of four (4) (g) $50 Monthly Water System Operator II Senior Water System Operator D5 $5000 Annually Park Ranger Senior Park Ranger Emergency Medical Tech (EMT) $3,000, and upon recertification Utility Installer/Repairer Utility Installer/Repairer Lead Maintenance Mechanic - Welding Pipeline Welding Assignment (f) 4% Pay Premium *When assigned to WGW Operations City of Palo Alto and SEIU Local 521 Page 39 of 85 Classification Certification(s) Amount Water Quality Control Operator I Water Quality Control Operator II Sr Water Quality Control Op Plant Mechanic (WQC) Electrician (WQC) Chemist Senior Chemist Water System Operator I Water System Operator II Senior Water System Operator Laboratory Technician WQC Inspector Field Services** One (1) certification above what is required in the Job Description (h) 1% of Annual Salary as a lump sum **When assigned to Utilities Installer/Repairer Series f)Pipeline Welding Assignment. The Utility Installer-Repairer and Utility Installer-Repairer Lead positions that fail to maintain current certifications will not receive a 4% premium on their base pay. Positions assigned these duties and designated by Management to receive this premium will not exceed five (5) Utility Installer/Repairer(s) and Installer/Repairer Lead(s). If the certification is required in the job description, certification must be maintained. In accordance with their job description, Maintenance Mechanics assigned to Water Gas Wastewater must maintain all required certifications and shall receive 4% premium to their base pay for pipeline welding. g) Building Inspector Certifications: Employees in the classifications of Building Inspector, Building Inspector Specialist and Sr. Building Inspector may receive $50 per month per certification above the minimum requirement of the classification up to a maximum of 4 additional certifications (maximum $200/month or $2400 annually). Premiums will not be paid if certification is not maintained or if employee is not employed in a covered classification. •International Code Counsel (ICC) o Residential Building Inspector o Residential Mechanical City of Palo Alto and SEIU Local 521 Page 40 of 85 o Residential Plumbing o Residential Electrical o Commercial Building Inspector o Commercial Mechanical o Commercial Electrical o Commercial Plumbing o CALGreen Building Inspector/Plans Examiner o Accessibility Inspector/Plans Examiner •Department of State Architect (DSA): Certified Access Specialist CASp •US Green Building Council LEED BD+C •or equivalent as defined by the Chief Building Official h)Water and Wastewater System Operator Certification. Employees classified in the following positions: Water Quality Control Plant Operators I and II, Senior Operator Water Quality Control, Plant Mechanics and Electricians assigned to Water Quality Control, Laboratory Technician Water Quality Control, Chemist, Senior Chemist, Water System Operators I and II, Senior Water Systems Operator, Inspector, Field Services assigned to Utilities and Installer Repairer Job Series may be eligible to receive a 1% base pay premium for certifications required by the Department of Health, California Water Environment Association and/or the State Water Resources Control Board. Employees within these job classifications that have successfully completed probationary requirements may request an annual payment of one (1) percent for one (1) certification that is above those listed in their job description. An employee who qualifies for this payment shall be paid 1% of the employee’s annual base salary once per year. The employee shall be responsible for providing the City with written documentation that the employee has obtained and is maintaining the qualifying certification on an annual basis. Premiums will not be paid if certification is not maintained. Eligible employees should verify certification will qualify for the premium before attempting certification. The Union and the City will update the job descriptions to reflect newly required certifications with no further adjustments to base salary. Payments will not exceed a maximum of one (1%) percent per year, and will take effect in the pay period following the verification of certification. All costs for obtaining certifications above what the job description requires will be the responsibility of the employee and may be paid for by using the City’s tuition reimbursement program. i) In accordance with Cal-OSHA regulations any employee who operates a forklift must have Forklift Operator Certification. Training to be provided by the City. j)Crane Certification. A Heavy Equipment Operator, Electric Heavy Equipment Operator, Line Person, Line Person Lead, or Maintenance Mechanic who City of Palo Alto and SEIU Local 521 Page 41 of 85 possesses the legally required certification for operation of any crane will receive $3,000 the first full pay period following the later of January 1 in each year, or the adoption of the MOA, and upon verification that the certification is held. Heavy Equipment Operator (Electric) must possess a Crane certification regardless of hire date. Any employee hired on or after July 1, 2012 may be required to obtain and possess crane certification. For any other employee hired prior to July 1, 2012 crane certification shall be desirable (not required) except under the following circumstances: a) There are insufficient employees in the classification (Heavy Equipment Operator [exclusive of Electric], Lineperson, Lineperson Lead or Maintenance Mechanic) who possess the certification to perform the work; b) The Manager has sought volunteers and no employee in the classification has volunteered to train for the certification; c) All things being equal, the manager has selected the least senior employee in the classification who is judged by the City most likely to successfully complete the training and obtain crane certification. d) The Manager will allow up to three attempts to pass the crane certification for any employee hired before July 1, 2012 who has been involuntarily assigned to acquire the crane certification. Related training and test costs shall be borne by the City. No employee hired before July 1, 2012 shall be disciplined or discharged for failure to acquire a Crane certification. Section 5 - Weather Protection. The City will provide rainy weather foot protection and one summer hat for the classification of Community Services Officer. ARTICLE 10 - HOLIDAYS Section 1 - Fixed Holidays Except as otherwise provided, employees within the representation unit shall have the following fixed holidays with pay: January 1 Third Monday in January (Martin Luther King Day) Third Monday in February City of Palo Alto and SEIU Local 521 Page 42 of 85 Last Monday in May City of Palo Alto and SEIU Local 521 Page 43 of 85 Employees who work a schedule where a regular day off falls on a holiday will accrue the holiday hours they would have normally worked on that day. If an employee has more than four (4) days of holiday time accrued the City will automatically cashout these additional hours. This does not impact the employee’s ability to cashout or transfer to deferred comp holiday hours below the four (4) day threshold. ARTICLE 11 - VACATIONS th) year: eighty (80) hours vacation per year. City of Palo Alto and SEIU Local 521 Page 44 of 85 b) First day of the fifth year of continuous service through the last day of the ninth (9th) year: one-hundred and twenty (120) hours vacation per year. c) First day of the tenth (10th) year of continuous service through the last day of the fourteenth (14th) year: one-hundred and sixty (160) hours vacation per year. d) First day of the fifteenth (15th) year of continuous service through the last day of the nineteenth (19th) year: one-hundred and eighty (180) hours vacation leave per year. e) Twenty (20) or more years: two-hundred (200) hours vacation leave per year. Vacation accrual will be prorated based on hours in paid status. Employees may accrue up to three (3) times their annual vacation accrual (e.g., an employee who accrues 80 hours per year has an accrual cap of 240 hours). As long as there is no interference with departmental operations, there shall be no unreasonable restriction of use. At the time of initial appointment, or to address an identified retention issue the City may credit an employee for prior experience or special expertise, including prior years of public service in a city, county, special district, state, or federal government agency, up to a maximum of five (5) years’ service towards their rate of vacation accrual. The City Manager or designee shall identify the number of years for which the employee will receive credit (up to the five (5) year maximum). Section 2 - Holiday Falling During Vacation In the event a fixed holiday as defined in Article X falls within an employee's vacation period, which would have excused the employee from work (and for which no other compensation is made), additional hours for such holiday shall be added to their vacation accrual. Section 3 - Illness During Vacation When an employee becomes ill while on vacation and such illness can be supported by a statement from an accredited physician or the employee is hospitalized for any period, the employee shall have the period of illness charged against sick leave and not against vacation leave. City of Palo Alto and SEIU Local 521 Page 45 of 85 Section 4 - Accrued Vacation Pay for Deceased Employees City of Palo Alto and SEIU Local 521 Page 46 of 85 4. Employees who pre-designate 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. ARTICLE 12 - LEAVE PROVISIONS Use of Sick Leave. Sick leave shall be allowed and used in cases of actual personal sickness or disability, medical or dental treatment, or as authorized for personal business. Sick leave may be used for illness in the immediate family, including registered domestic partner, or other individuals required by law. A new employee may, if necessary, use up to forty-eight (48) hours of sick leave at any time during the first six (6) months of employment. Return to Work With Limited Duty. Upon approval of department management and the City Risk Manager, an employee may return to work for doctor-approved limited duty. Approval for return to work shall be based upon department ability to provide work consistent with medical limitations, the location of the work assignment, and City of Palo Alto and SEIU Local 521 Page 47 of 85 the length of time of the limitations. The City doctor may be consulted in determining work limitations. f) If an employee’s illness results in an absence from work for more than three (3) consecutive work days or twenty-four (24) continuous hours, whichever is greater, a doctor’s certificate or other proof of illness may be required. The department head or designee may require a doctor’s certificate or other proof of illness when there is reasonable cause of misuse. g) Leave Committee During the term of this Agreement, upon request by either party, the parties will meet with the goal of developing alternate leave models, such as “Paid Time Off” or other similar benefits. Any changes implemented during the term of this agreement must be by mutual agreement only. Section 2 - Bereavement Leave a) Leave of absence with pay of three (3) days shall be granted an employee by the head of his or her department in the event of death in the employee's immediate family, which is defined for the purposes of this section as wife, husband, son, step-son, son-in-law, daughter, step-daughter, daughter-in-law, mother, step- mother, mother-in-law, father, step-father, father-in-law, brother, brother-in-law, step-brother, sister, step-sister, sister in- law, grandmother, grandmother-in-law, grandfather, grandfather-in-law, grandchildren, aunt, uncle, niece, nephew, registered domestic partner, or a close relative residing in the household of the employee. Such leave shall be at full pay and shall not be charged against the employee's accrued vacation or sick leave. Request for leave with pay in excess of three (3) days shall be subject to the written approval of the City Manager. Approval of additional leave will be based on the circumstances of each request with consideration given to the employee's need for additional time. b) Employees may supplement the paid bereavement leave in paragraph (a) with accrued leave (including vacation or sick leave) or unpaid leave to reach a total of five (5) workdays of time off per incident of bereavement. Section 3 - Military Leave The provisions of the Military and Veterans' Code of the State of California shall govern the granting of military leaves of absence and the rights of employees returning from such leaves. Consistent with the Military and Veterans Code, the City of Palo Alto shall pay employees in SEIU bargaining unit their regular salary, salary differential, and all available benefits for up to thirty days per calendar year. City of Palo Alto and SEIU Local 521 Page 48 of 85 Section 4 - Leave Without Pay a)Disability. Leaves of absence without pay may be granted in cases of disability not covered by sick leave. Pregnancy will be considered as any other disability. Leaves of absence for disability are subject to physicians' verification including diagnosis and medical work restriction. b)Family Leave. Family leave will be granted in accordance with applicable state and federal law. c)Other Leaves. Leaves of absence without pay may be granted in cases of personal emergency, Union business or when such absences would not be contrary to the best interest of the City. Non-disability prenatal leave is available under this provision, but such leave shall not begin more than six months prenatal nor extend more than six months postpartum. During unpaid leaves of absence for disability or other reasons, the employee may elect and the City may require that employee to use paid leave credits in a manner consistent with state and federal law. Requests for leaves without pay shall not be unreasonably denied. In order to avoid misunderstandings, all leaves without pay must be in writing to be effective. Section 5 - Jury Duty and Subpoenas. Employees required to report for jury duty or to answer subpoenas as a witness on behalf of the State of California or any of its agencies shall be granted a leave of absence with pay from their assigned duties until released by the court, provided the employee remits to the City all fees received from such duties other than mileage or subsistence allowances within thirty (30) days from the termination of jury service. When an employee returns to complete a regular shift following time served on jury duty or as a witness, such time falling within the work shift shall be considered as time worked for purposes of shift completion and overtime computation. In determining whether or not an employee shall return to their regular shift following performance of the duties, reasonable consideration shall be given to such factors as travel time and a period of rest. When a combination of City work time and jury duty equals 14 or more hours in the 24-hour period immediately before the employee's shift starting time, the employee will be allowed a rest period of nine (9) hours. Any portion of the rest period falling within the employee's work shift will be considered as hours worked and compensated at the straight time rate. This provision does not apply to conditions of bona fide emergency. Bona fide emergency conditions are conditions involving real or potential loss of service or property or personal danger. City of Palo Alto and SEIU Local 521 Page 49 of 85 Section 6 - Time Off to Vote ARTICLE 13 - WORKERS' COMPENSATION INSURANCE City of Palo Alto and SEIU Local 521 Page 50 of 85 c) 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. In case of Subsection (a) above, the employee will continue to accrue vacation and sick leave benefits. In the case of Subsection (b), sick leave and vacation benefits shall not be accrued. Section 2 - Vocational Rehabilitation Benefits for Permanently Disabled Employees Vocational Rehabilitation will be made available to employees who have suffered permanent disability as a result of an injury or illness sustained in the course and scope of employment before 1/1/04. For injuries on or after 1/1/04 qualified employees are entitled to supplemental job displacement vouchers in accordance with the California Labor Code, Division 1, Department of Industrial Relations and Division 4, Workers’ Compensation and Insurance, the Americans with Disabilities Act (ADA), and the City of Palo Alto's Workers’ Compensation Program. ARTICLE 14 - BENEFIT PROGRAMS Section 1 - Health Plan a) Active Employees During the term of this contract, the maximum City contribution towards medical premiums for eligible full time employees per employee category shall be up to a maximum of the following for any plan: Effective January 1, 2025: •Employee only: $943 •Employee plus one: $1885 •Employee Family: $2,444 Effective the first full pay period following City Council adoption, and in lieu of an increase to the City contribution towards medical premiums, each represented classification will have their base pay increased by one-thousand, eight hundred dollars ($1800) per year ($150 per month). Effective the first full pay period including January 1, 2026, and in lieu of an increase to the City contribution towards medical premiums, each represented classification will have their base pay increased by an additional six hundred dollars ($600) per year (for a total of $2400 per year or $200 per month). City of Palo Alto and SEIU Local 521 Page 51 of 85 Effective January 1, 2027, in addition to the $2400 of annual flexible compensation, the City will increase its maximum contribution to medical premiums by the following percentages: •Employee only: increase City contribution by two percent (2.0%) to $962 per month. •Employee plus one: increase City contribution by three percent (3.0%) to $1,942 per month. •Employee family: increase City contribution by five percent (5.0%) to $2,566 per month. The City’s total maximum contribution towards medical premiums for eligible part time employees shall be prorated based on the number of hours per week the part-time employee is assigned to work. PEMHCA minimum changes per statutory determination and has historically been increased by $3 dollars each year. Any increases to the PEMHCA minimum during the term of this contract will result in a corresponding decrease to the amount of the additional City contribution, so that the total maximum City contribution never exceeds the amount listed in the Maximum City Contribution described above. b) Health Plan Coverage for Future Retirees Hired Before January 1, 2005. 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. Effective 1/1/07 the City’s monthly employer contribution for each retiree and their eligible family members, as defined by the CalPERS Health Benefits Program, shall be the amount necessary to pay for the cost of his or her enrollment, in a health benefits plan up to the monthly premium for the 2nd most expensive plan offered to the SEIU employee (among the existing array of plans). However, the City contribution for an employee hired before January 1, 2005 who retires on or after April 1, 2011 the City contribution for the retiree and their eligible family members, as defined by the CalPERS Health Benefits Program, shall be the same contribution amount it makes from time to time for active City employees. The City provided active unit employees who were hired before January 1, 2005 with a one-time opportunity to opt-in to retiree health benefits provided under California Government Code section 22893. Eligible employees who wish to exercise this option shall inform the People, Strategy, and Operations department of their election in writing no later than 90 days following the ratification and adoption of this Agreement. City of Palo Alto and SEIU Local 521 Page 52 of 85 c) PERS – Health Benefit Vesting For Future Retirees Effective January 1, 2005 or any existing employee who opts into this vesting schedule. The CalPERS vesting schedule set forth in Government Code section 22893 will apply to all SEIU employees hired on or after January 1, 2005 or any existing employees who opt into this vesting schedule. Under this law, an employee is eligible for 50% of the specified employer health premium contribution after ten 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 year of service credit will increase the employer contribution percentage by 5% until, at 20 years’ service credit, the employee will be eligible upon retirement for 100% of the specified employer contribution. However, the maximum contribution for eligible family members, as defined by the CalPERS Health Benefits Program, will be 90% of the specified employer contribution. The City of Palo Alto's health premium contribution will be the minimum contribution set by CalPERS under section 22893 based on a weighted average of available health plan premiums. d) Retiree Health Committee During the term of this agreement the parties will maintain a Retiree Health Committee. The Union shall appoint two (2) Union members (and one Union staff person) to serve on this committee who shall receive reasonable release time to attend Retiree Health Committee meetings. Changes to this section during the term of this Agreement will be by mutual agreement only. The parties agree that Retiree Health Committee meetings may be attended by representatives of other City labor groups. e) Coverage for Domestic Partners. . 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. . 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 a stipend of two hundred and eighty four dollars ($284.00) per month toward the cost of an individual health plan. Evidence of premium payment will be required with request for reimbursement. f) Alternative Medical Benefit Program. If a regular employee and/or the employee’s dependent(s) are eligible for and elect to receive medical insurance through any other non-City of Palo Alto employer- sponsored or association-sponsored group medical plan, the employee may choose City of Palo Alto and SEIU Local 521 Page 53 of 85 to waive his/her right to the City of Palo Alto’s medical plan insurance and receive cash payments in the amount of two hundred eighty-four dollars ($284) for each month City coverage is waived. Examples of waivers eligible for this payment are: • Employee waives all applicable City medical coverage; or • Employee is eligible to enroll his or her spouse or domestic partner and waives medical coverage for the spouse or domestic partner; or • Employee has additional eligible dependents and waives family-level medical coverage. Participation must result in a health insurance cost savings to the City and payments per employee shall not exceed a total of two hundred eighty four dollars ($284.00) per month. To participate in the program the employee and dependents must be eligible for coverage under PEMHCA medical plans, complete a waiver of medical coverage form, and provide proof of eligible alternative medical coverage. Payments will be made in the employee’s paycheck beginning the first month following the employee’s completion of the waiver form. Payments are subject to state and federal taxes and are not considered earnings under PERS law. Employees are responsible for notifying the City of any change in status affecting eligibility for this program (for example, life changes affecting dependent’s eligibility for medical coverage through the employee) and will be responsible for repayment of amounts paid by the City contrary to the terms of this program due to the employee’s failure to notify the City of a change in status. If the State of California or federal government requires the City to participate and contribute toward coverage under any medical plan outside of PEMHCA including but not limited to the Affordable Care Act, the City’s total liability for enrolled employees and retirees and their eligible family members shall not exceed what the City would have paid toward PEMHCA coverage in the absence of such state or federal plan. The parties will meet and confer over the impact of such change on matters within the scope of representation before implementing any change. Section 2 - Dental Plan a) The City shall continue to provide a self-funded dental program for the benefit of City employees and their eligible dependents. The City shall pay 100% of the required premiums for the program, except that benefits for regular part-time employees will be prorated as follows: Employees hired after January 1, 2005, who will work less than full time, will receive prorated premium costs for dental benefits in accordance with City of Palo Alto and SEIU Local 521 Page 54 of 85 his/her percentage of a full-time work schedule. Part-time employees currently receiving full benefits will not be impacted. b) The City’s Dental Plan provides the following: •Maximum Benefits per Calendar Year $2,000 per person. c) Effective July 1, 2001, dental implants in conjunction with one or more missing natural teeth, and removal of implants will be covered as a Major Dental Service at 50% usual, customary and reasonable (UCR). d) Effective 1/1/07 the City will add composite (tooth colored) fillings in dental plan posterior teeth. e) Effective 1/1/07 the City will pay up to $2000.00 for Orthodontia coverage. Section 3 - Vision Care The City shall continue to provide a self-funded vision care program for the benefit of City employees and their dependents. The City shall pay 100% of the required premiums for the program. The benefits of the vision care program shall continue to be equivalent to $20 Deductible Plan A under the Vision Service Plan. Vision benefits for regular part-time employees hired or assigned to a part-time schedule will be prorated in accordance with his/her percentage of a full- time work schedule. Section 4 - Life Insurance The City agrees to continue the Basic and Supplemental life insurance plan as currently in effect for the term of this Memorandum of Agreement. Section 5 – Long Term Disability Insurance Employees shall be enrolled in Option 1 (Default) for long term disability insurance and may elect to enroll in Option 2 (Buy-up). • Option 1 (Default): This benefit provides 60% of pre-disability earnings up to a maximum benefit level of $4000 per month. Coverage is subject to payroll deduction of the required insurance premium. Employees pay 50% of the required insurance premium and the City will pay the remaining 50% of the required insurance premium. City of Palo Alto and SEIU Local 521 Page 55 of 85 • Option 2 (Buy-up): This benefit provides 66 and 2/3% of pre-disability earnings up to a maximum benefit level of $7000 per month. Coverage is subject to a payroll deduction of the insurance premium. The City will contribute an amount equal to 50% of the premium for Option 1, employees will pay the remainder of the required premiums. Section 6 - Effective Date of Coverage for New Employees For newly-hired regular employees, elected coverage will begin on the first day of the month following date of hire. Section 7 - Dual Coverage When a City employee is married to another City employee each shall be covered only once (as an individual or as a spouse of the other City employee, but not both) and dependent children, if any, shall be covered by only one spouse. Section 8 - Deferred Compensation The City shall continue to make available a Section 457 Deferred Compensation Plan to SEIU employees and will insure reasonable access to Deferred Compensation representatives for all interested employees. Section 9 - Dependent Care Assistance Program and Medical Flexible Spending Accounts The City shall continue to provide a Dependent Care Assistance Program (DCAP) and Medical Flexible Spending Accounts (FSA) for employees that comply with Section 125 of the Internal Revenue Code. Calendar year limits are set by the IRS. All matters related to the FSA shall be excluded from the grievance requirements of this MOA (per side letter agreed to in 2011). a) Dependent Care Assistance Program: Can be used to pay for qualified day care (or dependent care) expenses with pre-tax dollars. b) 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. The City will deduct the annual administrative fee through a payroll deduction (currently $4 as of 2015) or if the employee has unused FSA dollars from the prior calendar year, the City will apply those dollars to cover the administrative fee. City of Palo Alto and SEIU Local 521 Page 56 of 85 ARTICLE 15 – RETIREMENT Section 1 - PERS Continuation a)Pension Group A: 2.7% @ 55. The City will continue the present benefits under the Public Employees' Retirement System 2.7% at 55 for employees hired before July 17, 2010. The Parties acknowledge that employees under this formula hired before July 17, 2010 are subject to a final compensation calculation, for pension determination purposes, based on their single highest year of compensation earnable as provided by Government Code Section 20042. b)Pension Group B: 2.0% @ 60 – (Single Highest Year). For employees hired on or after July 17, 2010 and before January 1, 2013, and employees hired on or after January 1, 2013 who are not “new members” of CalPERS as defined in the Public Employees’ Pension Reform Act (often referred to as “Classic” CalPERS members), but before the adoption of the modified 2% at 60 formula described below, whichever is later, the City will continue to provide the 2% at 60 retirement formula (“2% at 60”). The Parties acknowledge that employees under the existing 2% at 60 pension formula are subject to a final compensation calculation, for pension determination purposes, based on their single highest year of compensation earnable as provided by Government Code section 20042. c)Pension Group C: 2.0% @ 60 – (3 Highest Years). The City shall further amend its contract with CalPERS to provide miscellaneous “Classic” CalPERS members hired on or after August 1, 2013 with the CalPERS retirement formula two percent (2.0%) of final compensation at age sixty (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 accommodate 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% of final compensation at age 60 formula with single highest year earnable compensation as described above. d)Pension Group D: 2% @ 62. Employees hired on or after January 1, 2013 meeting the definition of “new member” under the Public Employees’ Pension Reform Act (Gov’t. Code s. 7522 et seq.) shall be subject to all of the provisions of that law, including but not limited to the two percent at age 62 (2%@62) retirement formula with a three year final compensation period. City of Palo Alto and SEIU Local 521 Page 57 of 85 Section 2 - Employee Share ARTICLE 16 - COMMUTE INCENTIVES AND PARKING Civic Center Parking. Employees assigned to Civic Center and adjacent work locations. The City will provide a Civic Center Garage parking permit. New employees hired after April 30, 1994 may initially receive a parking permit for another downtown lot, subject to the availability of space at the Civic Center Garage. City of Palo Alto and SEIU Local 521 Page 58 of 85 b.Carpool. The City will provide $30 per month (taxable income) to each eligible employee in a carpool for 60% or more of their scheduled work days per month with two or more people. c.Bicycle. The City will provide $20 per month to eligible employees who ride a bicycle to work. This payment is available through the CCD web site in the form of a special Commuter Check (tax free) for bike equipment, gear or repairs. This benefit cannot be combined with other commute benefits. d.Walk. The City will provide $20 per month (taxable income) to eligible employees who walk to work 60% or more of their scheduled work days. e.Transit or vanpool users: Tax-free incentives up to the IRS limit (currently $255/month) are available through the Commuter Check Direct (CCD) web site for employees using Bay Area public transportation or riding in a registered vanpool at least 60% of their scheduled work days. f.Go Pass. The Go Pass program will offer civic center and other downtown- based employees a Caltrans Go Pass that allows unlimited rides on Caltrain in all zones seven days per week. g. The City and Union agree to meet in Labor Management Committee to assess and improve the application of the telecommuting policy and option for employees. The deadline for registering with CCD and placing an online order is 8:59 p.m. on the seventh (7th) day of each month, for the next month’s benefit. For example, employees wishing to order a transit pass by June must place their online orders with CCD by May 7. Section 2 – Parking Lot Security – Municipal Service Center The City will provide fenced and locked parking facilities for Municipal Service Center employees. Procedures will be established for entering and leaving the parking facilities. Section 3 – Bicycle Lockers and Motorcycle Parking The City will provide bicycle lockers and motorcycle parking areas for City employees at mutually agreeable work locations. City of Palo Alto and SEIU Local 521 Page 59 of 85 ARTICLE 17 - PHYSICAL EXAMINATIONS If any non-probationary employee who is required to have a City-provided physical examination not related to workers' compensation programs disagrees with the findings of the City-sponsored physician, they may consult with their own physician and, if their private physician's report conflicts with that of the City physician in terms of ability to work at their regular job, then they may request an evaluation of their problem through a third physician mutually agreed upon by the employee and the City. Cost for such examination will be equally shared and the decision of this physician concerning the continuing ability of the employee to perform their work in their regular job without exposing themselves to further injury as a result of their condition shall be the basis for returning the employee to their regular work. Section 1 - Health and Safety Provisions The City shall furnish and use safety devices and safeguards and shall adopt use practices, means, methods, operations and processes which are reasonably adequate to render such employment and place of employment safe, in conformance with applicable safety regulations under the State Labor and Administrative Code sections. The City shall not require or permit any employee to go to or be in any employment or place of employment which is not safe. Section 2 - Union Cooperation Union will cooperate with the City by encouraging all employees to perform their work in a safe manner. Section 3 - Safety Committees and Disputes Safety committees composed of Management and Union stewards in the below listed organizations will meet no less than six (6) times annually to discuss safety practices, methods of reducing hazards, and to conduct safety training. This shall in no way remove the basic responsibility of safety from Management nor shall it in any way alter the responsibility of the employee to report unsafe conditions directly and immediately to his or her supervisor. Community Services Public Works Water-Gas-Wastewater Field Operations Electric Field Operations City of Palo Alto and SEIU Local 521 Page 60 of 85 Water Quality Control ARTICLE 19 - GRIEVANCE and APPEAL PROCEDURE City of Palo Alto and SEIU Local 521 Page 61 of 85 provisions not being subject to the grievance or appeal of disciplinary action procedure. b) Appeal of a disciplinary action means an appeal of any kind of disciplinary action against an employee covered by this Memorandum of Agreement. Discipline is defined as suspensions without pay, reductions in pay, demotion, or discharge. Reprimands, transfers, reassignments, layoffs, and negative comments in performance evaluations are not discipline. Section 3 - Conduct of Grievance Procedure or Appeal of Disciplinary Action Procedure a) An aggrieved employee may be represented by the Union or may represent themselves in preparing and presenting a grievance or appeal of disciplinary action at any level of review, except arbitration. Grievances may also be presented by a group of employees. No grievance or appeal of disciplinary action settlement may be made in violation of an existing merit rule or memorandum of agreement. The Union will be notified prior to the implementation of any settlement made which affects the rights or conditions of other employees represented by the Union. The Union and the Steward will be copied on all written representation unit grievance or appeal of disciplinary action decisions. b) An employee and the representative steward, if any, may use a reasonable amount of work time so long as there is no disruption of work, in conferring about and presenting a grievance or appeal of disciplinary action. Requests for release time to prepare grievance or appeal of disciplinary action shall be made in accordance with the provisions of Article 4, Section 3. c) Beginning with the third step of the grievance or appeal of disciplinary action procedure, the Chief Steward or Alternate Chief Steward may assist in presenting a grievance or appeal of disciplinary action and may be present at all Step 3 and 4 grievance or appeal of disciplinary action hearings. d) The time limits specified in this Article may be extended by mutual agreement in writing of the aggrieved employee or the Union and the reviewer concerned. e) Should a decision not be rendered within a stipulated time limit, the grievant may immediately appeal to the next step. f) The grievance or appeal of disciplinary action may be considered settled if the decision of any step is not appealed within the specified time limit. City of Palo Alto and SEIU Local 521 Page 62 of 85 g) If appropriate, the aggrieved employee(s) or the Union and the department head may mutually agree, in writing, to waive Step 1 and/or Step 2 of the grievance or appeal of disciplinary action procedure. City of Palo Alto and SEIU Local 521 Page 63 of 85 information for each Party, and describe the agreed-upon method(s) of communication. All designated representatives shall be copied on any communications. On all transmissions that are intended to conform to a time limit, the sender shall retain proof that the transmission was sent within that limit (for example, confirmation of electronic mail transmission or record of successful fax transmission) in the sender’s file for production if a dispute arises over existence or timing of the transmission. Either Party may designate new representatives or terminate an alternate delivery agreement under this section by providing written notice, which shall be effective immediately, to the other. Section 4 - Grievance and Appeal Procedure Step 1. Informal Discussion. Within fifteen (15) working days after the incident or discovery of the incident on which the grievance or appeal of disciplinary action is based the aggrieved employee shall present the grievance action to their immediate supervisor and attempt to resolve the grievance through informal discussions. Every attempt will be made to settle the issue at this level. Step 2. If the grievance is not resolved through the informal discussion in Step 1 or the employee wishes to appeal disciplinary action taken against them in the case of a grievance, the employee will reduce the grievance or appeal of disciplinary action to writing and submit copies to the Department head or their designee within fifteen (15) working days of the discussion with the immediate supervisor or within fifteen (15) working days from the receipt of a final disciplinary action. The Department Head or designee shall have fifteen (15) working days from the receipt of a written grievance or appeal of disciplinary action to review the matter and prepare a written statement. Step 3. If the grievance or appeal of disciplinary action is not resolved and/or the aggrieved employee is not satisfied with the Step 2 decision, the grievant or disciplined employee may appeal to the Human Resource Director or their designee in writing within fifteen (15) working days of the receipt of the Department Head's response. The written appeal to the Human Resources level shall include a copy of the original grievance or appeal of disciplinary action, the Department Head’s decision at Step 2, and a clear statement of the reasons for appeal. Within fifteen (15) working days, after receiving the written appeal, the Human Resource Director shall review the matter and prepare a written statement. If a mutually agreed solution is reached during this process the agreement shall be placed in writing and signed. Step 4. If the grievance or appeal of disciplinary action is not resolved at Step 3, the Union may appeal the grievance or disciplinary action. Appeals to final and binding arbitration may be processed only with Union approval. All Step 4 appeals must be filed in writing at City of Palo Alto and SEIU Local 521 Page 64 of 85 the Human Resources Department within fifteen (15) working days of receipt of the Human Resource Director’s decision at Step 3. ARTICLE 20 - UNSATISFACTORY WORK OR CONDUCT AND DISCIPLINARY ACTION City of Palo Alto and SEIU Local 521 Page 65 of 85 Section 1 - Preliminary Notice of Discipline Prior to imposing disciplinary action, a supervisor shall provide an employee with preliminary written notice of the proposed disciplinary action. The notice of proposed disciplinary action must be in writing and served on the employee in person or by registered mail or Fed-Ex. The notice of disciplinary action shall include: a) Statement of the violations upon which the disciplinary action is based; b) Intended effective date of the action; c) Statement of the cause thereof; d) Statement in ordinary and concise language of the act or the omissions upon which the causes are based; e) Copies of any documents or other written materials upon which the disciplinary action was fully or in part based. f) Statement advising the employee of his/her right to appeal from such action, and the right to union representation and a statement that in order to exercise your rights to union representation the employee may contact their SEIU representative or their steward. g) The date and location of the Skelly meeting and the name of the Skelly Officer Section 2 - Skelly Meeting The employee shall have the right to respond informally to the charges either verbally or in writing before the discipline is imposed. The employee shall have fifteen (15) working days from receipt of the notice to request this pre-disciplinary administrative review. The employee may request a reasonable extension of the time to respond for justifiable reasons. The Skelly meeting to listen to the verbal responses shall be scheduled with a City representative who is not the manager recommending the discipline (the “Skelly Officer”). The Skelly Officer shall render a final written decision (the “post-Skelly decision”) within fifteen (15) working days of receiving the employee’s response, if any, and shall deliver the post-Skelly decision to the employee by personal delivery or registered mail. The Skelly Officer may sustain, modify, or overturn the recommended disciplinary action. If the Skelly Officer sustains or modifies the disciplinary action, the action may be imposed after the post-Skelly decision is delivered to the employee. City of Palo Alto and SEIU Local 521 Page 66 of 85 Section 3 – Appeal ARTICLE 21 - NO ABROGATION OF RIGHTS ARTICLE 22 - OUTSIDE EMPLOYMENT ARTICLE 23 – WORK STOPPAGE AND LOCKOUTS ARTICLE 24 - PROVISIONS OF THE LAW City of Palo Alto and SEIU Local 521 Page 67 of 85 applied to employees assigned to the SEIU unit, this Memorandum of Agreement shall prevail over any conflicting Merit Rules and Regulations. ARTICLE 25 – PROFESSIONAL DEVELOPMENT City of Palo Alto and SEIU Local 521 Page 68 of 85 d. Requests for reimbursement shall be submitted in accordance with the procedures developed by the City. A request for reimbursement will not be considered submitted until it includes the relevant receipts and proof that the necessary grade or successful completion was earned. e. Courses must be taken on the employee’s off duty hours, unless prior approval is received from the employee’s supervisor. Section 2 - Student Loan Reimbursement Student Loan Reimbursement conditions: a. Employees must have an active student loan in good standing. b. Employees must successfully complete the secondary education with which the student loan was incurred, and must provide proof of successful graduation or completion. c. Requests for reimbursement shall be submitted in accordance with the procedures developed by the City. A request for reimbursement will not be considered submitted until it includes proof of payment towards the employee’s student loan within the eligible fiscal year. Section 3 - Training Programs a) Employees assigned by the City to attend meetings, workshops, or conventions of their professional or technical associations shall have their dues and reasonable expenses paid by departmental funds and shall be allowed to attend such workshops, meetings, and conventions on paid City time. b) The City will reimburse for travel, meals and lodging while away from home attending an educational conference that the supervisor authorizes as being job related or which will improve an employee’s skills. Per City Policy and Procedure 1-02, the Pre-Travel Authorization Form should indicate expenses that will be paid. ARTICLE 26 - COST REDUCTION PROGRAMS During the term of this agreement, the Union will aggressively assist Management in developing cost reduction programs. Such programs may include voluntary reduced hours/pay after this concept is studied by Management, and with such application as may be approved by Management. City of Palo Alto and SEIU Local 521 Page 69 of 85 ARTICLE 27 – TERM This Memorandum of Agreement shall become effective upon ratification by both parties hereto and remain in effect through December 31, 2027. The Parties agree that they will commence negotiations over a successor to this Memorandum of Agreement no later than one hundred eighty (180) days before its expiration. If, at the time this Memorandum of Agreement would otherwise expire, the parties are continuing to negotiate a successor Memorandum of Agreement, upon mutual agreement the terms and conditions of this Memorandum will continue in effect. Upon written request of the City, this MOA will reopen on the subject of Apprenticeship Programs and the Parties will meet and confer over revisions to Appendix B and any related sections. City of Palo Alto and SEIU Local 521 Page 70 of 85 EXECUTED: _______________________________ _______________________________ Teneya Johnson, Chief Negotiator Ed Shikada, City Manager __ Peter Quiroz, Chapter Chair Molly Stump, City Attorney __ Sara’ Temple Charles Sakai, Chief Negotiator _____ __ Nathan McClure Sandra Blanch __ David Sigua Ben Farnsworth ___ Scott Johnson Sandhya Uthup Sara Temple Lewis Paris Ratu Serumalani City of Palo Alto and SEIU Local 521 Page 71 of 85 Nathan McClure Jose Vigil Wesley Patnesky Kevin Carley City of Palo Alto and SEIU Local 521 Page 72 of 85 APPENDIX A The salary rates of bargaining unit classifications will be as set forth in Appendix A of this MOA a) General Salary Increase: Effective the first full pay period following the later of January 1, 2025 or the adoption of the MOA, the salary ranges of all represented classifications will be increased by three percent (3%). b) Market Adjustment: Effective the first full pay period following the adoption of the MOA, the salary ranges of all represented classifications will be increased in an amount sufficient to bring them to the top quartile (75th percentile) of the labor market before application of the General Salary Increase as determined by the City’s market study (PEPRA). However, no represented classification shall receive a market adjustment of more than three percent (3%). c) Effective the first full pay period following January 1, 2026, each represented classification which was more than three percent (3%) below the top quartile (75th percentile) of the City’s market study (PEPRA) will receive the remainder of the market adjustment required to bring them to the 75th percentile. For example, if classification A was 3.6% below the top quartile (75th percentile) of the labor market before application of the 2025 General Salary Increase as determined by the City’s market study (PEPRA), that classification would receive a 3.0% market adjustment in 2025 and a 0.6% market adjustment in 2026. d) One-time Lump Sum: The City will pay each represented employee a one-time discretionary cash payment of $300 in the first pay period following City Council adoption of this MOA (prorated for part time employees). Parties understand this to be non-pensionable compensation and excludable from regular rate of pay. e) General Salary Increase: Effective the first full pay period following the later of January 1, 2026 or the adoption of the MOA, salary ranges of all represented classifications will be increased by two and one half percent (2.5%). f) General Salary Increase: Effective the first full pay period following the later of January 1, 2027 or the adoption of the MOA, salary ranges of all represented classifications will be increased by three percent (3%). City of Palo Alto and SEIU Local 521 Page 73 of 85 Recruitment and Retention •Monday through Friday two (2) hours at their straight time regular rate of pay •Saturday, Sunday, Holidays three (3) hours at their straight time regular rate of pay City of Palo Alto and SEIU Local 521 Page 74 of 85 APPENDIX B. APPRENTICESHIPS Note: Employees hired into a Lineperson Apprenticeship position on or before April 11, 2016 will continue to progress through the Apprenticeship steps and into the Lineperson journey rate at the same intervals as existed before April 11, 2016 in the Apprenticeship Program. Substation Electrician, Street Light /Traffic Signal / Fiber Technician, Lineperson/Cable Splicer APPRENTICE: Upon completion, may lead to Journey level position. The Utilities Department has formalized the Apprenticeship programs in the Electric Section to develop journey level electricians/technicians and lineperson/cable splicers. The following are basic concepts/principles to be incorporated: 1. The administration and operation of the Apprenticeship programs will be managed by the Apprenticeship Committee, which will be selected by the Manager of Electric Operations and comprised of two (2) bargaining unit members designated by Local 521 and two (2) Utility Supervisors and the Manager of Electric Operations. The Manager of Electric Operations will maintain oversight of the program. The Apprenticeship Program will be subject to review and approval by the State of California Department of Industrial Relations Division of Apprenticeship Standards. 2. The journey level position will not be a promotional opportunity for anyone other than the apprentice under filling the position, as long as that apprentice is successfully progressing through the program. 3. Employees within Electric Operations, who qualify, will be given first consideration for the apprentice position prior to other City classifications or recruiting from outside the City. 4. A letter of agreement will be entered into by the apprentice and the City identifying the terms and conditions of the program. 5. The program will normally require eight thousand (8000) work hours (48 months) to complete for Lineperson Cable Splicer and six thousand (6000) work hours (36 months) for Substation Electrician, Street Light /Traffic Signal / Fiber Technician positions. 6. Normal progress through the program will be in periodic increments with formal evaluations. City of Palo Alto and SEIU Local 521 Page 75 of 85 7. The salary steps for the Substation Electrician, Street Light /Traffic Signal / Fiber Technician and Lineperson Cable Splicer apprenticeships are outlined in the State of California Department of Industrial Relations Division of Apprenticeship Standards. Month Step Step Intervals Month Step City of Palo Alto and SEIU Local 521 Page 76 of 85 Upon successful completion of the Apprenticeship, the employee will be reclassified / progressed to Substation Electrician or Street Light /Traffic Signal / Fiber Technician Journey Level and paid at the fifth step (step 5) of the journeyman rate. City of Palo Alto and SEIU Local 521 Page 77 of 85 APPENDIX C. DEPT/DIVISION CLASSIFICATION WORKDAY OR WORKWEEK VARIATION Section 1. Exceptions to Standard Workday or Work Week for SEIU Representation Unit: Library Department Coordinator, Library Programs Librarian Senior Librarian Library Specialist Library Associate In a given workweek, staff may work three eight-hour days, one seven-hour day, and one nine-hour day. On a voluntary basis, staff may work five non-consecutive days within seven. Section 2. Rules Governing Flexible Work Hours These rules and procedures are established pursuant to Article VI, Section 8, and are an application of Article VIII, Sections 1, 2, and 3 of the Memorandum of Agreement to the classifications of Coordinator, Recreation Programs; Producer, Arts & Sciences Programs; Program Assistant; Theater Specialist, in the Recreation and Arts & Sciences Divisions of the Community Services Department, and the classifications of Associate Planner, Building Planning Technician, CDBG Coordinator, Engineer, , Planner, and Senior Planner in the Planning and Community Environment Department. a) Flexible Work Schedule 1. Employees in the covered classification shall be permitted to arrange flexible work schedules with division approval, providing that such schedules shall include forty (40) hours per week. 2. Standard daily office hours are typically Monday through Friday, between the hours of 8:00 a.m. and 6:00 p.m. as determined by the Department. Flexible hours may occur for supervision of, and/or attendance at, evening programs, meetings, weekend events, or other programs. b) Overtime 1. Emergency call-out work shall be defined as overtime work and compensated per standard City practices. City of Palo Alto and SEIU Local 521 Page 78 of 85 2. If the need arises for overtime work due to an unusual circumstance calling for extra hours or due to a special event, compensation shall be allowed with prior approval of the Director of Recreation, Director of Arts and Sciences, or the Director of Planning and Community Environment, and shall be compensated for, as spelled out in the Memorandum of Agreement. Section 3. 2080 Plan a) Either the Union or the City may withdraw from the Plan by giving the other party 30 calendar days written notice. In the event of termination of the plan, the covered classifications will return to an 8-hour or other authorized workday as provided under Article VIII, Section 1, of this Memorandum of Agreement. b) Provisions of the 2080 Plan are as follows. To the extent that these provisions are in conflict with other provisions of the Memorandum of Agreement, these provisions will prevail. c) The 2080 Plan or “12 hours per Shift Schedule” is an authorized work schedule for the Utility Systems Operators and Water Quality Control Plant Operators. 2080 Plan Under this 2080 Plan, each employee's hours of work per year may not exceed 2,240. For scheduling purposes, and subject to the Merit System Rules and Regulations, the employee will be guaranteed not less than 2080 hours per year, or no less than 52 weeks at the normal number of hours worked per week. Any employee covered by the Plan who works up to 2,080 hours per year is compensated for all hours worked at the agreed upon rate. The City must pay overtime for all hours worked in excess of 12 in any workday, 56 hours in any work week, or 2080 hours in 52 weeks as the case may be. The rate of overtime will be at time and one-half the employee's regular rate of pay (or current contract overtime rate, if different). Shift Schedule The shift schedules combined must provide full 24-hour, seven (7) days per week coverage for the Utility Control Center and Water Quality Control Plan. The shift schedule shall be a rotating schedule. The Utility Systems Operators’ shift schedule will reach the equivalent of 40 hours per week in five weeks. The 12-hour shifts begin at 7:00 a.m. and 7:00 p.m. The Relief shift shall begin at 7:00 a.m. and end at 3:00 p.m. with lunch taken while working. The shift schedule shall be rotating schedule. The Water Quality Control Plant Operators’ shift schedule will reach the equivalent of 40 hours per week in two weeks. There will be four 12-hour shifts that begin at 6:00 a.m. and 6:00 p.m. The fifth shift will be a 4/10 shift that begins at 6 a.m. on three days, and at noon on the fourth day. City of Palo Alto and SEIU Local 521 Page 79 of 85 Pay Period Pay periods and workweek for the System Operations will begin Sunday at 7:01 a.m. Pay periods and workweek for the Water Quality Control Plan Operators will begin Saturday at 6:01 a.m. Wages Wages will be based on the City of Palo Alto Compensation Plan, which may vary from time to time as mutually agreed upon. Overtime Under the 2080 Plan, the City will pay overtime for all hours worked in excess of 12 in any workday, 56 in any work week, or 2080 in 52 weeks, as the case may be. Overtime will also be paid for hours worked when an employee is called in to work other than their regularly-scheduled shift. The overtime rate of pay will be one and one-half times (or current contract overtime rate, if different) of the employee's regular rate of pay. All overtime worked will be paid to the employee. No compensatory time off for overtime will be allowed with the exception of Water Quality Control Operations. Relief Employees This provision only applies to the Utility Systems Operators. The five Operators share the relief week evenly as they rotate through the five week cycle. Relief employee(s) will be used within the 12-hours shift schedule only when relieving for the System Operators on shift. When not relieving, they will work four eight-hour shifts. When a vacation relief week results in a 36-hour or 48-hour week, the operator working said week shall be paid at one and one-half (1½) time their normal rate of pay for hours that exceed thirty two (32) hours. Relief Duties This provision only applies to the Utility Systems Operators. An employee who is scheduled to perform relief duties shall be available for duty in revolving shifts on any day of the week and may be assigned for relief in any shift without advance notice. Relief employees will be paid standby pay during their relief week. Standby This provision only applies to the Utility Systems Operators. An employee who is on relief duties is covering standby, and will be compensated according to Article VIII, Section 7 (a) of the Memorandum of Agreement. If the relief employee is on vacation or otherwise unavailable for relief duties, the employee(s) on their three or four-day off period will be first on standby. City of Palo Alto and SEIU Local 521 Page 80 of 85 Management reserves the right to utilize Management personnel as Operators on a short- term, as needed basis, if no Operator is available. Filling Vacant Positions Shift Changes Maximum Hours Worked Rest Period Holidays Sick Leave Floating Days Off City of Palo Alto and SEIU Local 521 Page 81 of 85 Vacation An employee's total entitlement will be converted to hours (eight hours = one day). A workday will consist of 12 hours, and employees taking vacation will be charged 12 hours of use. Two week notification is required for any scheduled time off. Only one person at a time may be scheduled off. It is the intention of the City that vacation be taken in units of one work week; however, with approval of his/her supervisor, an employee may use his/her accrued vacation in units of less than one work week. Shift employees shall be permitted to eat their meals during work hours and shall not be allowed additional time, therefore at City expense. Shift premium will be handled in accordance with the current Memorandum of Agreement between the City and the Union, Article VIII, Section 8. Time off for jury duty which occurs on a regularly scheduled workday will result in the employee being credited with up to 12 hours worked, for pay purposes. Employees called for jury duty who are working the evening portion of the 12-hour schedule will be placed, for payroll and scheduling purposes, on the day shift for each scheduled day such employee is required to report for jury duty, and will not be required to work the evening 12-hour shift before or after being required to report for jury duty. However, such employee shall return to work on the day shift upon being released from such duty if there are at least four hours remaining prior to the end of the day shift. All other provisions of Article XII, Section 5, of the current Memorandum of Agreement shall apply. 1. For employees in the following operations assigned to work schedules other than Monday through Friday, the calendar day will be considered the holiday for premium pay of in-lieu scheduling purposes: Communications Water Quality Control Animal Control Golf Course Utilities Services Landfill Open Space City of Palo Alto and SEIU Local 521 Page 82 of 85 Electric System Operator If December 24 and 31 fall on Sunday, then the preceding Friday will be designated for purposes of excused time off, except in the case of Community Services staff who may be scheduled to work on Saturday, in which case Saturday will be designated for purposes of excused time off. For Open Space and Library personnel, designation of excused time off will be based on Park and Library schedules and employee preference. APPENDIX E. COMMUNICATIONS DIVISION PROMOTIONS 1. Promotional opportunities within the Communications Division will be carried out in compliance with procedures set forth in Article VI, Section 5, of the Memorandum of Agreement between the City and SEIU Local 521, except that: a. In sub-paragraph (e) of Article VI, Section 5, the term "seniority" shall be defined as Division Seniority. •Division Seniority, for the purposes of shift scheduling, vacation scheduling and promotional opportunities will be calculated from an employee’s first day of employment in the division. Any unpaid leave that is not protected under FMLA or CFRA will not count as service days towards seniority, unpaid furlough, and unpaid closure time. Other areas of seniority not mentioned in this article will follow Article 6, Section 5, e “Seniority” of the Memorandum of Agreement between SEIU 521 and the City of Palo Alto. City of Palo Alto and SEIU Local 521 Page 83 of 85 APPENDIX F. RECOVERY OF CITY TRAINING COSTS In recognition of the extended training provided to affected employees, the Parties agree that the City may recover up to thirty percent (30%) of its cost for training employees, hired on or after July 1, 2012, in all Utilities Apprentice classifications and in the Park Ranger Apprentice classifications if the employee voluntarily terminates from the City or abandons his or her City employment before completing three years of City service in the Journeyman classification or Park Ranger classification. The amount recovered shall reasonably reflect the City’s cost for the training, but will exclude all wage or benefit costs, and will be prorated to reflect the portion of the thirty-six (36) month post-training service period remaining at the time of the employee’s termination. As of July 1, 2015 thirty percent (30%) of the City’s average cost for training employees in: •Lineperson/Cable Splicer Apprenticeship Program is $5600.00 •For the Field Service Representative, the City’s two year training cost is $ 6,000 •For Substation Electrician Apprenticeship Program is $4800.00 •For Street Lighting / Traffic Signals / fiber Apprentice program is: $1800.00 •For Park Ranger, the City’s two-year training cost is:$6,300 The employee will be required to sign an agreement providing for reimbursement to the City as provided above on the form attached hereto as Appendix H. This Agreement is entered into between ___________ (“Employee”) and the City of Palo Alto (the “City”), as authorized by the Memorandum of Agreement between the City and SEIU Local 521. RECITALS A. The purpose of this Agreement is to limit the City’s risk that it will invest substantial sums in the Employee’s training but potentially lose the value of that training if the employee terminates without rendering substantial journey level service to the City after training. B. The City may require reimbursement from Employee of thirty percent (30%) of the total training cost for _______position, subject to abatement when specified service requirements are met. C. On or about (date) City extended to Employee a conditional offer of employment in the position of _________(position), subject to Employee’s City of Palo Alto and SEIU Local 521 Page 84 of 85 agreement to complete the training necessary to perform the duties of _______ (position), under the terms of the training program. The ______(position) requires [description of training], which as of July 1, 2015 cost the City approximately $ over the course of the training. D. This agreement sets forth the Employee’s agreement to reimburse the City for the City’s investment in the Employee’s training if the employee voluntarily terminates from the City prior to the completion of thirty-six months of service following successful completion of the training. THEREFORE, the Parties agree to the terms set forth below: By signing this agreement, the Employee understands that s/he is bound by agrees to the following terms: 1. ____________________________________ (hereafter “Employee”) agrees that in training Employee for the position of _________________________________________, the City of Palo Alto (hereafter “City”) incurs a total cost of $___________. 2. Employee agrees that amounts recoverable under this agreement do not include Employee wage or benefit costs. 3. Employee agrees that in the event he/she voluntarily terminates or abandons his or her employment from the City prior to the completion of thirty-six (36) months of service following the successful completion of his or her apprenticeship, he/she will repay the City for the cost of training noted above, prorated to reflect the months of service the Employee has completed following successful completion of their training. Employee agrees that for the purpose of this agreement, “time of service” shall begin on the date following the successful completion of the Employee’s training. 4. Employee agrees that the aggregate amount of repayment due will be determined based upon the attached proration table. 5.Employee agrees that repayment shall be due and made in equal monthly installments over the twelve (12) months immediately following termination, on the first of each such month. 6. If Employee does not fully reimburse the City for the amounts due when due, the entire aggregate amount owed will become immediately due, the employee will be deemed in default on this agreement and the City may initiate legal City of Palo Alto and SEIU Local 521 Page 85 of 85 proceedings to collect said amounts. Employee will be responsible for all reasonable collection costs and attorney fees incurred by the City in undertaking such proceedings. The City may elect to forbear taking such action to allow Employee the opportunity to become current on the debt. Such forbearance will not alter the Employee’s default status or adversely affecting the City’s right to later initiate proceedings for recovery pursuant to this Agreement. 7. This agreement shall be effective on the date listed below. DATED: ___________________ ______________________________________ Employee ______________________________________ Title, City of Palo Alto