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October 18, 1990
T"ME HONOfV.BI£ (;!TV COUNCIL
Palo Mo, Californ'a
Amendment 10 Meri! System Rules & Regu!a!ionS . Neootism Poficy
Members 01 the Council:
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This report recommends changes 10 Sections 302 and 403 01 the Merit System Rules
and Regulations regarding nepotism rules !or department heads and Human
Resources department employees. The proposed change removes departrnMI heads
and Human Resource Department employees from the definition '" 'designateci
employee' and adds a new prOVisfon which prohfbi1s any employee or des'gnated
employee from participating in an employment decision OWoIving a member of his or
her imme<ftale family.
I!Kkg!J!<!nd
In November 1985, the City's nepotism porlC)' was incorporated as part of the Mer~
System Rules and Regulations. Acoording 10 this porlC)', relatiVes of City employees
are IF"" 10 apply and be considered !or employment wit!1in othe< City departments or
d'rvisions except lhal immediate family relatives of designated employees including
council members, counal·appoinled offloers, department heads and Human Resources
Department employees may not be employ ad ;n any City department This exception
also appnes \0 famlly relationships whicl1 are establis.~ed through marriage Of adoplion
between a designated employee aoo anothe< City employee. In \he latter instance,
one of !he related employees must leave City service.
Under the curren! portey, the City would be required 10 enforce a termination were a
department head 10 marry an employee in another department For an other City
employees, current poltey fimits the employmen! of relatives, but only within \he same
d'lVision or department For example, if two employees within Ih6 sarne division or
department marry, an attemp! is made 10 transfer ana of the spouses 10 another
department Famng a transfer, an analysis is made to deterrnir.e t, for business
reasons of supervision. safety. security Of moraie, !he work of the married employees
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involves polentlal conflicts 0{ interest or other ~azards greater lor married couples than
lot other persons. Only wf1arl a "busiMSS raasons" finding is Made Is tra"sfer c<
t9rmination enforced.
In !he interest 0{ more equitable treatment lor employees as well as establishmEnt 0/
recruitmeni/relenlion sensitive pcncles, staff recoo-.rnen.:ls removing department heads
and Human Resource Department amployees from !he definitioo 01 "designaled
employee' and including !hem with other City amployees lor purposes 0{ t'1e Mpclism
pofocy. ~ order 10 rnake City porocy rnore expridl, staff 21so reoommends adding a
rnlW subsection which expressly prohibits any employee or de$''9'1ated employee from
partic1pating in an employment deciSion involving a member 01 his or her immediate
family. We believe lhIs cha .... ge eflChances !he policy's p<olections against imp<oper
influence on employment decisions trJ City employees.
All changes being p<oposed are hlg/lI'lghted ... !he attached resolution. The changes
aI!ect Il'lIy management and confidential employees and are therefore not subject 10
meet and cooler. The employee unions are, as a malter 01 informafuo, given copies
0/ 1hese d<Y.:uments.
Recomme~
Staff recom'llGnds approval 0{ the attached resolution. amending Sections 302 and
403 0{ the Merit System Rules and Regulations p<0'IkMg lor ~ndments 10 the City
r.epotlsm pofocy regarding department heads and Human Resource Oepartrr.ent
employees.
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RESOLUTION NO.
RESOWTION OF THE COUNCIL OF THE CITY OF PALO ALTO
AMENDING SECTIONS )02 AND 40) OF THE MERIT SYSTEK
RULES AND REGULATIONS (NEPOTISM POLICY)
~rlEREAS# the City of Palo Alto wishes to remain free fro~
nepotls.~ including allegations or appearances of nepotism: and
WHEREAS. the City previously adopted a nepoti~m policy and
Resolution No. 6451 d3tei December 2, 1985 in order to implement
this desire: and
WHEREAS, the City Council wishes to amend the city's
present nepotism policy set forth in the Merit Syste~ Rules and
Regulations in order to treat City department heads in the same
aanner as other reqular elIIoployee.s and in order to prohibi t employee
participation in employment decisions affecting talaily 1I!Ie1IIbers; and
WH:!REAS# the City Council believes that these modifications
will benefit the City bji' enabling recruitment and ret~ntlon of
highly qualified employees.
NOW, THEREFORE, the Council of the city of Palo Alto does
RESOLVE as follows:
SEc=r;ON l~ S~ction 302 of the Merit Srstem Rules and
Regulations is hereby a.ended to read as follows:
302, Nepotism. (a) Notwit:hstanding Section 301, no
.ember of the iaaeaiate family of an active Council Member or a
designated employee may become an employee durinq the term of that
Council Kember or the period of el!lployment of the designat.ed:
employee. This section does not apply to two members of an
immediate faRily who are authorized to share a single position.
Cb) Notwithstanding Section 301, the spouse of a city
employee ~ay not become an employee within the same division (or
the sa~e department I if the department does not contain divisions)
as that city employee if the directnr of ~erge~Ael ~uman resources
deter.lnes that~ for business reasons of supervi5ion, safety ~
security or morale~ the work of such e~ployees involves potential
conflict3 of inter~st or other hazards greater tor married couples
than for other persons,
tel Notwithste.ndinq Section 301, a parent. sibling or
child (!'.Ie~ iptelaclipt, 1ft 1& B SP ·step· :f'elat.i. esj of a city
emplo~ .. ee lIlay not become an employee yithin the same division (or
the saae department, it the department does not contain divisions)
~s the city employee. This SUbsection does not apply to two 5uch
relatives who are authorized to share a single position .
.... td} . 110 !lllPloy.. or desLgnate<1 .... ploy.e "hall "'"Ploy, ~~.tr~<:aII!lIen4 t"r •.• ppointlilent or in any other ... nner partic1-
p.j.ta or.att.empt to participate in the hirinq, prollOtion, d",""Uon,
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(e) For purposes of this section ... the following defini
tions are in effect:
t 1) -I_ediate faaily· means the spouse, parent,
sibling or child of the employee 8ftd .eea "e~ iftel~de ift la~e er
·s~e,· rela~i~ee~
(2j -Employee-means an individual hired for hourly,
re-,g'ular, fllll-ti~e,,,, _, r~uli!r part-time or contract employment, •
""""'~9'''',ai;4JtD«i;tiIiD,\l or an individual serving os a member of ~;£~:d' or 'coaIsa'lon.
(3) ~De.ignated employee-means an employee who 1s a
Council-Appointed OffIcer or as.i9tan~ city manaqer. ~be 4ipee~BP
~--a--4epapt.!lePlt_1 I!I'!" aft :_,10$188 ef *-he F&I'Ss"Rel i!le~al!'gelW. It
is hereby determined that,. for business reasons .of supervision,.
safety, security and aorale, a ~ember of the immediate famil, of
such a designated employee .ay not be employed within the city.
(4) "Division" means a division specified in cnapter
2.08 of the Palo Alto Municipal Code.
{5) -Department-means a departrent specified in
Chapter 2.08 of the PalQ Alto Municipal CQde.
SZC"I'IQN 2. Section 403 of the Merit system Rules and
Regulations is hereby amended to read as follows:
to,}, TarmtnAtion; non=disciplinary .action. fa) An
eaployee aay be ter.lnated by the appointing authority at any time,
for inability to pet'':on. the duties of the position. Regular
ellPloyees shall be given a written statement of the reasons for
such ter.lnation and aay appeal such action in the manner provided
in Section 1004.
(b) If any e~ployee and a Council Member or a deSignated
eaployee become members of the same immediate family (through
marriage or adoption), or if ~ member of an employeets immediate
fa1lily is elected to the City Council, or becomes a deSignated
employee one ot the persons must leave ci~y employment or elective
office. x£ the two persons have not made 4 choice within 30 days
of the est;etblishm-ent of the family relationship, or the election to
office, or the assumption of the new position, the city manager
shall have the sole discretion to choose which family member shall
be terminated and shall te~inate that person. If the relationship
is. between a Council MCJiI.ber and a city employee, tbe employee shall
be tenllinated ~
{c) If two employees other than designated employees,
within the same division (or the same department, if the departwlent
does not contain divisions) becoae meabera of the same i •• ediata
family (through marriage or adoptio~) ~" thi! ~,!~lee6 shall notify
the director of ,e~8e"",el se!F'lleea buaan r .. ~~ The pers.nfte}
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b~;·<'~rc .. departJtent ahall aake 4 reasonable effort to tian"l~r one fam.ily Bember to a ditrere-nt division {or department).
It such a tra.nsfer ia not po".ible within six months ot the
•• tab11s_tla ent of the lalli1y relationship, 'the ,e!!'esft:llel bUllan
tiII"~ depart.ent shall nC"tlfy the employees in writinq. Within
30 "days of such not i f ieat lon, the two persons i nvol ved sha 11 choose
which person shall leave city employment. If a choice is not made
vi thin that time, the city .anaqer ahall have sale discretion to
chooBe which ta.ily .ember shall be terminate4 and shall terminate
~~t:".,,~~re,~,l,1 ~ , If the tvo employees lbecOJlle spouses., the pePBetmel
~::~:rt~:r,~ departllent .hall not att-e:mpt to transfer or tenina'te' one of the ellployees unlesSl it determines that" for
business reasons of .upsrvision, safety" security or mor~le¥ the
york such employees involves pot.ntial conflicts of interest or
other hazards qreater for .arried couples than for other persons~
Notwithstanding thi. seotion, no employees in the same iaaediate
1'aaJ...ly .ab.iI~l .be required to tr.n.a.ter divi.ions (or deparblent.) or
l.avo city eMployment tor the 'reason of their relationship if they
were hired before the date thia resolution yes passed.
(d) Regular and pa-rt-t!ae employees shall be given a
'Written statement of the reasons for such ter..inat.ion and may
appeal such ~ction in the manner provide~ in Chapter ll~
(e) For purposes of subsections (b) and (e) of his
secti.on" the definitions contained in section lO2.(d) of these Merit
Syste. Rules and Regulations are in effect~
SECTION J~ The Council finds that this is not a project
under the California Environaental Quality Act, and. therefore, no
environaental impact assessment Is necessary.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSTENTIONS,
IIBSENT:
A'l"l'EST: APPROVED:
City Clerk Mayor
APPROVED liS TO FORM: APPROVED:
City Attorney
Director of Human Resources
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