HomeMy WebLinkAboutC36180 - PDEO - 7-1-2017 - 06-30-2022 CONTRACT NO. C36180
CITY OF PALM DESERT
ADMINISTRATIVE SERVICES DEPARTMENT
STAFF REPORT
REQUEST: Approve the successor Memorandum of Understanding (MOU) between
the City of Palm Desert and the Palm Desert Employees Organization
(PDEO) for July 1, 2017 — June 30, 2022.
SUBMITTED BY: Lori Carney, Human Resources Manager
DATE: June 8, 2017
CONTENTS: PDEO MOU — July 1, 2017 to June 30, 2022 (Redline and Final
Versions)
Recommendation:
By Minute Motion: Approve the Memorandum of Understanding between the City of
Palm Desert and the Palm Desert Employees Organization for the period July 1, 2017
through June 30, 2022 and authorize City Manager and designees to execute.
Appropriate $100,000 from unobligated general fund reserve.
Strategic Plan Objective:
This action supports all areas of the Strategic Plan because it is necessary for
successful employee relations and a productive workforce.
Background:
The City recognizes the Palm Desert Employees Organization as the bargaining unit for
general non-exempt and exempt non-supervisory employees. As such, it has entered
into successive Memoranda of Understanding over the years. The existing MOU
between the City and the PDEO was adopted in 2014 and expires June 30, 2017. In
accordance with the Myers-Millias-Brown Act, the City Manager and her team have
negotiated the terms and conditions of a successor MOU, included herein, which
represents the culmination of those negotiations and has been ratified by the general
membership. The vote was overwhelmingly in favor with 48 voting yes and six nos.
Staff Report
Approve PDEO MOU July 1, 2017 to June 30, 2022
June 08, 2017
Page 2 of 2
The negotiations were collaborative and staff would like to thank the employees group
for their positive contributions towards finding agreement. Clauses which have been
revised, or are of particular interest, are highlighted below:
• Five year term — July 1, 2017 through June 30, 2022;
• Existing health, dental and vision benefits continue with the addition of a cash
incentive for employees who choose the lowest cost plan;
• New 500 hour maximum for Sick Leave accrual effective immediately for employees
hired after July 1, 2017, and for all employees effective July 1, 2022;
• New Vacation Leave accrual schedule, which reduces the maximum accrual rate by
ten days annually, effective immediately for employees hired after July 1, 2017;
• City support of an alternative work-week "9/80" schedule, with no reduction in City
Hall hours and subject to Council approval of final policy and procedures;
• No guaranteed Cost of Living Adjustment (COLA), however the PDEO and City
have agreed to meet-and-confer on potential salary adjustments in years where the
one-year change in the CPI is greater than 2% or greater than 4.5% cumulatively
from July 1, 2017 through the term of the agreement;
• One-time payment of a Concession Recognition Stipend equal to 1% of the prior
year's earned wages, payable prior to June 30, 2017.
Fiscal Impact:
The fiscal impact in FY 2016/2017 is approximately $100,000 and staff anticipates that,
in future years, lowered sick and vacation leave balances will result in a reduction in
cash payouts. Incentive for employees to choose lowest cost health plan should result
in modest annual savings.
Submitt Approved:
on Ca ey, Lauri Aylaian, -'7
Direct of Administrative Services City Manager
1/ r^
Janet Moor ,
Director of in nce
CONTRACT NO. C36180
MEMORANDUM OF UNDERSTANDING
Pursuant to the Myers-Milias Brown Act (MMBA), Chapter 10 (Section 3504 et.
seq.) of the Government Code, the California Law governing collective
bargaining, and the Employer-Employee Relations Ordinance (EERO) of the City
of Palm Desert, the matters within the scope of representation that are set forth
in this Memorandum of Understanding (MOU) have been discussed by the
representatives of the Palm Desert Employees Organization (PDEO) and
representatives of the City of Palm Desert (City).
The matters within the scope of representation that are set forth in this MOU
have been discussed in good faith and agreed to by the City and the PDEO as
constituting an equitable adjustment to present wages, hours and other terms
and conditions of employment as evidenced by the signatures of the duly
authorized representatives of the City and the PDEO.
This MOU shall not be binding upon the parties, in whole or in part, unless and
until said City Council formally approves this MOU.
The City's Personnel Ordinance and Standard Operating Procedures shall
govern during the term of this Memorandum of Understanding, unless otherwise
indicated herein.
PDEO Board City
Date John Urkov Date Lauri Aylaian
PDEO Board Member City Manager
Date Cora Gaugush Date Lori Carney
PDEO Board Member Director Admin. Services
Date Jodi Orton Date Janet Moore
PDEO Board Member Director of Finance
Date Rae Munoz Date Robert Hargreaves
PDEO Board Member City Attorney
ATTEST:
Date Rachelle Klassen
City Clerk
City of Palm Desert
CONTRACT NO. C36180
ARTICLE 1 —TERMS OF AGREEMENT
This Memorandum of Understanding (MOU) shall be binding on the City and the
PDEO when approved by the PDEO general membership and the City Council.
Except as otherwise provided herein, this MOU shall be in full force and effect for
a term of five (5) years, from July 1, 2017, through June 30, 2022.
Any employment policies, practices and/or benefits that were in effect as of the
date of signing of this MOU shall be deemed incorporated into this MOU, unless
otherwise stated herein.
The parties agree that the disciplinary and grievance procedures set forth in the
City's Personnel Ordinance shall govern during the term of this Memorandum of
Understanding.
In the event of a conflict between the MOU and an existing policy and/or practice,
this MOU provision shall govern.
The City and the PDEO agree that this MOU contains all of the covenants,
stipulations, and agreements of the parties.
The City shall meet and confer in good faith with the PDEO on all matters related
to the salaries, benefits and other terms and conditions of employment, in
accordance with the Myers-Milias-Brown Act.
ARTICLE 2 — AMENDMENTS AND MODIFICATIONS
2.1 Modification
The City and the PDEO agree, understand and reserve the right, to meet and
confer in good faith, at any time, with respect to any subject or matter covered in
this MOU in order to amend or make modifications to this MOU. Any changes to
this MOU must be approved by the PDEO general membership and City Council.
2.2 Severance Clause
In the event that a court finds any provision(s) of this MOU to be invalid,
unenforceable, or contrary to law, such provision shall be severed from this MOU
and will not be applicable, performed, or enforced, except to the extent permitted
by law. The parties agree that all the other provisions of this MOU shall remain in
effect.
The parties further agree to meet and confer in good faith for purposes of
negotiating an alternative to any severed provision.
City/PDEO Memorandum of Understanding Page 2 of 11
Adopted June 8, 2017
CONTRACT NO. C36180
ARTICLE 3 - REPRESENTATION
In accordance with the MMBA and the EERO, the City of Palm Desert recognizes
the PDEO as the exclusive representative of all general and non-management
employees as listed in Appendix A of this agreement.
The PDEO recognizes the City Manager as the exclusive representative for the
City for purposes of entering into this MOU.
ARTICLE 4 - COMPENSATION
4.1 Wages
The Grade, Step and Wage Rates Schedule for employees covered by this
Agreement is set forth in the Allocated Positions and Salary Resolution adopted
by the City Council annually during the budget process and incorporated in this
MOU by reference.
4.2 Cost of Living Adjustment (COLA)
A Cost of Living Adjustment (COLA) is an adjustment to all salaries on the salary
schedule adopted by the City Council, to reflect changes in the regional cost of
living as determined by the Bureau of Labor Statistics.
The parties agree to meet and confer regarding potential COLA's in each year
during the term of this agreement for which there is a greater than 2% change in
the Consumer Price Index (CPI), (as published by the U.S. Department of Labor,
Bureau of Labor Statistics, for the Los Angeles-Anaheim-Riverside area, for all
urban consumers) from the March index of the prior year to the March index of
the current year, or in any year that the cumulative change from July 2017 to
March of the current year is greater than 4.5%. These negotiations shall begin in
April of affected years.
4.3 Concession Recognition Stipend — One Time Lump Sum Payment
Each employee (excluding Executive Management: Group A & Group X) shall
receive a one-time payment, "off salary schedule," Concession Recognition
Payment equal to 1% of base salary, earned the preceding year, to be awarded
to all members hired prior to July 1, 2017, ("Lump Sum Recipients"). Each Lump
Sum Recipient shall receive the Concession Recognition Stipend payment of 1%
of base salary paid for pay periods July 1, 2016 to June 30, 2017, inclusive, in
recognition of their efforts and concessions during the term of the previous
MOU. The Concession Recognition Payment is a one-time payment and will be
paid out prior to June 30, 2017.
City/PDEO Memorandum of Understanding Page 3 of 11
Adopted June 8, 2017
CONTRACT NO. C36180
The Concession Recognition Payment is compensation earned that is in addition
to and separate from base pay, for purposes of pensionability "off salary
schedule," and will not be considered earned wages for purposes of PERS
contributions. This payment will be made as a separate disbursement and
subject to tax withholding in accordance with IRS regulations.
4.4 Night Differential Pay
Employees who are assigned to perform their duties between the hours of 6:00
p.m. and 6:00 a.m. for a special project (and for whom the majority of hours fall
after 6:00 p.m.) are eligible for night differential pay at the rate of $2.50 per hour.
This does not apply to employees assigned to standby duty and receiving
standby pay.
Night differential pay will be subject to the following regulations:
• Night Differential schedules must be pre-approved by the Department
Head;
• Night Differential amount paid will be $2.50 per hour;
• Employees on "stand-by" and receiving stand-by pay who are called
back to work are not eligible for Night Differential, because they have
already been compensated through the `stand-by' and 'call-back'
provisions;
• In order to qualify, the majority (greater than 50%) of the work must be
performed between the hours of 6:00 p.m. and 6:00 a.m.
4.5 Working on Holidays
Non-exempt employees may be paid at the overtime rate when required to work
on a scheduled holiday. In order to receive the overtime rate for holiday work, the
following conditions must be met:
• The employee must work at least 40 hours in the same workweek the
holiday falls in, (Holiday hours count towards hours worked when
computing the total for the workweek);
• The employee cannot have been scheduled an alternate day off in the
same workweek;
• If the employee takes sick or vacation time during the same
workweek, such time shall not be counted as hours worked for the
computation of overtime.
City/PDEO Memorandum of Understanding Page 4 of 11
Adopted June 8, 2017
CONTRACT NO. C36180
ARTICLE 5 — BENEFITS
The City's Personnel Ordinance shall govern eligibility for benefits. Benefits in
place on July 1, 2017, shall continue during the term of this agreement unless the
PDEO and City meet and confer, and reach agreement, on proposed changes.
5.1 Employee Flexible Benefits — "Cafeteria Plan"
The City shall provide its employees with health, vision and dental plan benefits
through an IRS Section 125 Flexible Benefits Plan. This plan is referred to as the
"Cafeteria Plan" because it offers a "menu" of benefits choices. The plan
provides premium coverage for health, dental and vision insurance plans. In
addition, the City will provide a flat $50.00monthly flex plan credit to the cafeteria
plan which can be used toward the purchase of benefits, placed in a Flexible
Spending Account or received as taxable cash via payroll. Employees who
choose the lowest cost health plan available are eligible for additional flex plan
credits, with the amount based on family size as follows:
Single: $50 monthly
Two-Party: $75 monthly
Family: $100 monthly
Those employees who 'opt out' of the City provided health plans shall receive a
flat $150.00 monthly additional credit to the flex plan in lieu of coverage.
(a) Health Insurance Benefits
The Flexible Benefits Plan will provide premium coverage (with no
employee contribution) for employees and their dependents who choose a
plan other than the most expensive PPO (PersCare at the time of adoption
of this MOU)Employees who choose the PersCare PPO will be
responsible for paying the difference in premium between PersCare &
PersChoice through a pre-tax payroll deduction.
Example (2017 family rate):
Plan Name Premium City Paid Employee Pays
Blue Shield HMO $2,023.97 $2,023.97 $0.00
PersChoice PPO $ 1,857.52 $1,857.52 $0.00
PersCare PPO $2,085,82 $ 1,857.52 $228.30
Eligible dependents for Health Care Coverage are defined by CaIPERS
and include spouse, domestic partner, and children (including foster, step
and economically dependent) up to age 26.
City/PDEO Memorandum of Understanding Page 5 of 11
Adopted June 8, 2017
CONTRACT NO. C36180
(b) Dental Benefits
The City shall provide its employees and eligible dependents with Dental
Benefits. Eligible dependents for Dental coverage are spouse, domestic
partner and children (including foster, step and economically dependent)
up to age 26.
The basic Dental benefit shall provide a maximum dollar limit of $2,000
per year along with additional orthodontia and implant coverage ($1,000
lifetime benefit at a 50% co-pay).
(c) Vision Benefits
The City shall provide its employees and eligible dependents with Vision
benefits. The plan will provide basic exams and single vision lenses
annually. It will also provide frames, up to $120.00, every 24 months. The
benefit will include an option for contact lenses. Eligible dependents for
Vision coverage are spouse, domestic partner and children (including
foster, step and economically dependent) up to age 26.
5.2 Retiree Health Stipend Program
The City offers a Retiree Health Stipend Program to assist long-term employees,
hired on or before December 31, 2014, in offsetting the cost of health insurance
in retirement. The program's provisions are dependent on hire date and are set
forth in a Resolution adopted by City Council and included here as Appendix B.
(a) Funding for the Retiree Health Stipend Program
The City maintains an independent trust fund for the purpose of providing
retiree health stipend payments. An actuarial report is used to determine
the funded status of the plan, which is reported in accordance with
Governmental Accounting Standards Board (GASB) Statement 45. Future
contributions to the fund will be subject to actuarial reporting and Council
approval during the yearly budget process.
5.3 Retiree Health Savings Plan (RHSP) and 401a Plan for Post-
Retirement Health Benefits
Employees hired on or after January 1, 2015 are automatically enrolled in the
City's Retiree Health Savings Plan and subject to a mandatory contribution of 1%
of base salary. The City will contribute a matching 1% of base salary to the plan.
City contributions are subject to a five-year vesting schedule. The plan is subject
to IRS regulations and contributions are non-elective. Employees may direct the
investments of their individual accounts. The intended purpose of the plan is to
City/PDEO Memorandum of Understanding Page 6 of 11
Adopted June 8, 2017
CONTRACT NO. C36180
provide employees with a tax advantaged savings vehicle for post-retirement
health benefit premiums.
Employees hired after January 1, 2015 are also eligible to participate in a 401A
plan for tax deferred savings. Employees may contribute up to 10% of salary
and the City will make a matching contribution of up to 2% of salary. This plan is
subject to IRS regulations. Elections must be made within 30 days of hire and are
non-revocable.
Detailed plan documents are available on the City's Intranet and through the
Human Resources Department.
5.4 Short Term Disability Insurance
The City agrees to offer a voluntary program of Short Term Disability Insurance
which interested employees may purchase through payroll deduction. This plan
is not intended to take the place of accrued sick leave. It is provided as a "safety
net" for those employees who choose to purchase it.
5.5 California Public Employees Retirement System (CaIPERS) Contract
Employees hired BEFORE September 1, 2011:
Regular employees hired prior to September 1, 2011 will be enrolled in CaIPERS
under the retirement formula of 2.7% at age 55.
Employees shall pay 8% of salary, employee portion, to CaIPERS.
Along with the 2.7% @ 55 formula the following benefits are included in the
CaIPERS contract for employees hired prior to September 1, 2011:
(a) Post-Retirement Survivor Allowance (PRSA) 50%. Upon the death
of a retiree, the PRSA, 50% of the unmodified allowance, will
continue to an eligible survivor. — Section 21624/21626
(b) Increased Level of 1959 Survivor Benefits (level 2) (Benefit payable
to eligible survivors if the member's death occurs during
employment.) — Section 21572
(c) Credit of Unused Sick Leave. Any unused sick leave days will be
converted to service credit at the rate of 0.004 years of service for
each day of sick leave, provided there is less than 120 days
between the member's separation date and retirement date. —
Section 20965
(d) Industrial Disability Retirement. A miscellaneous member may
qualify for an Industrial Disability Retirement (IDR) if they are
City/PDEO Memorandum of Understanding Page 7 of 11
Adopted June 8, 2017
CONTRACT NO. C36180
unable to perform the duties of their job because of a job-related
injury or illness. — Section 21151
(e) Improved Non-Industrial Disability Allowance. If a member retires
on a non-industrial disability, the allowance would be equal to 30%
of final compensation for five (5) years of service credit and 1% for
each additional year of service credit to a maximum of 50% of final
compensation. — Section 21427
(f) One-year Final Compensation (Final compensation calculated
using the last (or highest) twelve (12) consecutive monthly pay
rates.) — Section 20042
(g) COLA 2% - Beginning the second calendar year after the year of
retirement, retirement and survivor allowances will be annually
adjusted on a compound basis of 2% maximum. However, the
adjustment may not be greater than the change in the Consumer
Price Index. — Section 21329
(h) Retired Death Benefit $500 — Upon the death of a retiree, a one-
time lump sum payment of $500 will be made to the retiree's
designated survivor(s), or to the retiree's estate. — Section 21620
Employees hired between September 1, 2011 and December 31, 2012 and
Classic Members:
Regular, full-time employees hired between September 1, 2011 and December
31, 2012 and regular part-time employees who worked more than 1,000 hours ,
as well as Classic Members as referenced below, will be enrolled in CaIPERS
under the retirement formula of 2% at age 55.
Employees in this tier pay 7% of salary to CaIPERS.
Along with the 2% @ 55 formula, the following benefits are included in the
CaIPERS contract for these employees:
(a) Post-Retirement Survivor Allowance (PRSA) 50%. Upon the death
of a retiree, the PRSA, 50% of the unmodified allowance, will
continue to an eligible survivor. — Section 21624/21626
(b) Increased Level of 1959 Survivor Benefits (level 2) (Benefit payable
to eligible survivors if the member's death occurs during
employment.) — Section 21572
(c) Credit of Unused Sick Leave. Any unused sick leave days will be
converted to service credit at the rate of 0.004 years of service for
each day of sick leave provided there is less than 120 days
City/PDEO Memorandum of Understanding Page 8 of 11
Adopted June 8, 2017
CONTRACT NO. C36180
between the member's separation date and retirement date. —
Section 20965
(d) Industrial Disability Retirement. A miscellaneous member may
qualify for an Industrial Disability Retirement (IDR) if they are
unable to perform the duties of their job because of a job-related
injury or illness. — Section 21151
(e) Improved Non-Industrial Disability Allowance. If a member retires
on a non-industrial disability, the allowance would be equal to 30%
of final compensation for five (5) years of service credit and 1% for
each additional year of service credit to a maximum of 50% of final
compensation. — Section 21427
(f) COLA 2% - Beginning the second calendar year after the year of
retirement, retirement and survivor allowances will be annually
adjusted on a compound basis of 2% maximum. However, the
adjustment may not be greater than the change in the Consumer
Price Index. — Section 21329
(g) Retired Death Benefit $500 — Upon the death of a retiree, a one-
time lump sum payment of $500 will be made to the retiree's
designated survivor(s), or to the retiree's estate. — Section 21620
Employees hired AFTER January 1, 2013:
Employees hired on or after January 1, 2013, are subject to the Public
Employees Pension Reform Act (PEPRA) and receive benefits as classic or new
members based on the terms of PEPRA as defined by CaIPERS. .
Those designated as "New" members (no prior CaIPERS service or greater than
a six-month break in service) are enrolled in the retirement formula 2% @ 62 and
subject to the terms outlined in PEPRA.
Members defined by CalPERS as "Classic" (those with qualifying CaIPERS
service within the prior six months) are enrolled in the retirement formula 2% @
55 as noted above.
5.6 Sick Leave Accrual and Maximums
All employees hired on or after July 1, 2017, shall be subject to a maximum sick
leave accrual of 500 hours. Such employees who reach the maximum shall
cease to accrue sick leave until such time as their balance falls below 500 hours,
at which time they will begin accruing at the normal accrual rate until they reach
the maximum.
City/PDEO Memorandum of Understanding Page 9 of 11
Adopted June 8, 2017
CONTRACT NO. C36180
Employees hired on or BEFORE June 30, 2017:
Beginning July 1, 2022, employees hired on or before June 30, 2017, shall be
subject to a maximum sick leave accrual of 500 hours with the following
provisions:
a. Hours in excess of 500 will not be forfeited. They will remain in the
employee's account and may be used for paid sick leave or
converted to pension service credit at retirement (subject to the
rules of both programs.)
b. Hours in excess of 500 will NOT be eligible for "cash-out" on or
after July 1, 2022. The balance up to 500 hours may be cashed out
according the schedule contained in Palm Desert Municipal Code
(PDMC) Section 2.52.710.
c. Employees having more than 500 hours will cease to accrue sick
leave until such time as their balance falls below 500 hours, at
which time they will accrue the regular accrual rate per pay period
until they reach the maximum.
Both parties agree to meet and confer regarding the terms and implementation,
of a policy allowing all employees having reached the 500 hour maximum to
"cash-out" up to 40 hours, once per calendar year, in accordance with the
schedule in PDMC Section 2.52.710, which will begin on or after July 1, 2022.
5.7 Vacation Leave Accrual and Maximums
All employees hired on or after July 1, 2017, shall be subject to the following
vacation accrual schedule:
• All employees - two-weeks + 1 day per year of service, up to a maximum
of 10 additional days per year (total of 20 days per year);
• Group B (mid-mgmt) — additional one week for up to a maximum of 25
days per year;
• Group A (mgmt) — additional two weeks for up to a maximum of 30 days
per year.
• Group X— per contract.
All employees hired on or after July 1, 2017 shall be subject to a maximum
accrual balance equal to two times their annual accrual rate. At no time may
their balance exceed that amount. If the maximum is reached the employee will
cease to accrue vacation leave until such time as their balance drops below the
maximum (this can occur at any time during the year.)
City/PDEO Memorandum of Understanding Page 10 of 11
Adopted June 8, 2017
CONTRACT NO. C36180
6. Cellular Phone Stipend
Designated employees may receive a stipend for business use of their personal
cellular phone. Employees are designated by their Department Director and
must be approved by the City Manager prior to the granting of the Cell Phone
Stipend. The terms and conditions of the stipend program are adopted by City
Council Resolution and employees must sign an acknowledgement prior to
receiving the stipend. The stipend is paid through payroll, is considered taxable
income and is subject to withholding.
7. Alternative Work Schedules
The City is in support of adopting an Alternative Work Schedule (specifically a
9/80) and agrees to develop a policy for implementation. The policy will be
developed with input from the 9/80 Schedule Task Force which consists of
members of management, professional staff and PDEO members and contains
representatives from each department. The final policy must comply with the
Fair Labor Standards Act (FLSA) and be approved by the City Council.
City/PDEO Memorandum of Understanding Page 11 of 11
Adopted June 8, 2017
MEMORANDUM OF UNDERSTANDING
Pursuant to the Myers-Milias Brown Act (MMBA), Chapter 10 (Section 3504 et.
seq.) of the Government Code, the California Law governing collective
bargaining, and the Employer-Employee Relations Ordinance (EERO) of the City
of Palm Desert, the matters within the scope of representation that are set forth
in this Memorandum of Understanding (MOU) have been discussed by the
representatives of the Palm Desert Employees Organization (PDEO) and
representatives of the City of Palm Desert(City).
The matters within the scope of representation that are set forth in this MOU
have been discussed in good faith and agreed to by the City and the PDEO as
constituting an equitable adjustment to present wages, hours and other terms
and conditions of employment as evidenced by the signatures of the duly
authorized representatives of the City and the PDEO.
This MOU shall not be binding upon the parties, in whole or in part, unless and
until said City Council formally approves this MOU.
The City's Personnel Ordinance and Standard Operating Procedures shall
govern during the term of this Memorandum of Understanding, unless otherwise
indicated herein.
PDEO Board City
Date John Urkov Date Lauri Aylaian
PDEO Board Member City Manager
Date Cora Gaugush Date Lori Carney
PDEO Board Member Director of Admin. Services
Date Jodi Orton Date Janet Moore
PDEO Board Member Director of Finance
Date Rae Munoz Date Robert Hargreaves
PDEO Board Member City Attorney
ATTEST:
Date Rachelle klassen
City Clerk
City of Palm Desert
ARTICLE 1 —TERMS OF AGREEMENT
This Memorandum of Understanding (MOU) shall be binding on the City and the
PDEO when approved by the PDEO general membership and the City Council.
Except as otherwise provided herein, this MOU shall be in full force and effect for
Ia term of three five (35) years, from July 1, 2044 2017, through June 30, 2017
2022.
Any employment policies, practices and/or benefits that were in effect as of the
date of signing of this MOU shall be deemed incorporated into this MOU, unless
otherwise stated herein.
The parties agree that the disciplinary and grievance procedures set forth in the
City's Personnel Ordinance shall govern during the term of this Memorandum of
Understanding.
In the event of a conflict between the MOU and an existing policy and/or practice,
this MOU provision shall govern.
The City and the PDEO agree that this MOU contains all of the covenants,
stipulations, and agreements of the parties.
The City shall meet and confer in good faith with the PDEO on all matters related
to the salaries, benefits and other terms and conditions of employment, in
accordance with the Myers-Minas-Brown Act.
ARTICLE 2—AMENDMENTS AND MODIFICATIONS
2.1 Modification
The City and the PDEO agree, understand and reserve the right, to meet and
confer in good faith, at any time, with respect to any subject or matter covered in
this MOU in order to amend or make modifications to this MOU. Any changes to
this MOU must be approved by the PDEO general membership and City Council.
2.2 Severance Clause
In the event that a court finds any provision(s) of this MOU to be invalid,
unenforceable, or contrary to law, such provision shall be severed from this MOU
and will not be applicable, performed, or enforced, except to the extent permitted
by law. The parties agree that all the other provisions of this MOU shall remain in
effect.
The parties further agree to meet and confer in good faith for purposes of
negotiating an alternative to any severed provision.
City/POEO Memorandum of Understanding Page 2 of 12
f Adopted June 12,201-4 882017
ARTICLE 3- REPRESENTATION
In accordance with the MMBA and the EERO, the City of Palm Desert recognizes
the PDEO as the exclusive representative of all employees in the full time
general and non-management employees ei,-il as listed in Appendix A of this
agreement.
The PDEO recognizes the City Manager as the exclusive representative for the
City for purposes of entering into this MOU.
ARTICLE 4- COMPENSATION
4.1 Wages
The Grade, Step and Wage Rates Schedule for employees covered by this
Agreement is set forth in the Allocated Positions and Salary Resolution adopted
by the City Council annually during the budget process and incorporated in this
r MOU by reference. Beginning July 1, 2014, thoro will be eight (8) stops on tho __-- romment pci1:1 don t think this is necessary
grade table for all salary grades (oxsept City Manager and City Council); any longer because this has been in place for throe
years.
h...ar yer the total r of 35% fcom_minimum to maximum salary step remains -- — '
ttSh}}e..,,-��f..,,rame—The.Q�'c�ct .5vrv-insr-eaase f Steepp 7 iicsoingsplit hat.B onn Steepp 7 &
�P
Due to the cumulative nature of the step increases Stop 7 will provide a 3.5%
increase and Step 8 will provide a 3.88% incroaso. Tho total cumulative
difference}between Stop 6 and Step 8 is 7.8%.
The maximum salary remains the same in each grade. Employees currently at
already reached tho maximu
4.2 Cost of Living Adjustment(COLA)
A Cost of Living Adjustment (COLA) is an adjustment to all salaries on the salary
schedule adopted by the City Council, to reflect changes in the regional cost of
living as determined by the Bureau of Labor Statistics.
There shall be one such adjustment during the term of this agreement. The
parties agree to meet and confer regarding potential COLA's in each veal during
the term of this agreement for which there
July 1,2015:
City/PDEO Memorandum of understanding Page 3 of 12
I Adopted June 1-2-,2044 8.2017
On A -2-01i,-a-GOtA shall be granted equal to the is a greater than 2%
persehtage-change in the Consumer Price Index (CPI), (as published by the U.S.
Department of Labor, Bureau of Labor Statistics, for the Los Angeles-Anaheim-
Riverside area,for all urban consumers)from the March index of the prior year to
the March index of the current year, or in any year that the cumulative change
from July 2017 to March of the current year is greater than 4.5%. These
negotiations shall begin in April of affected years. Said change in CPI shall be
. ,�ted as the . stage differ e—between the March Index of 2014 and
the March Index 2015. This adjustment shal-I-not be less than two (2) percent nor
gr atcr thar}4sur(4)percent.
4.3 Concession Recognition Stipend—One Time Lump Sum Payment
Each employee (excluding Executive Management: Group A & Group X) shall
receive a one-time payment, "off salary schedule," Concession Recognition
Payment equal to 1% of base salary, earned the preceding year, to be awarded
to all members hired prior to July 1, 2017, ("Lump Sum Recipients"). Each Lump
Sum Recipient shall receive the Concession Recognition Stipend payment of 1%
of base salary paid for pay periods July 1, 2016 to June 30, 2017, inclusive, in
recognition of their efforts and concessions during the term of the previous
MOU. The Concession Recognition Payment is a one-time payment and will be
paid out prior to June 30, 2017.
The Concession Recognition Payment is compensation earned that is in addition
to and separate from base pay, for purposes of pension ability "off salary
schedule," and will not be considered earned wages for purposes of PERS
contributions. This payment will be made as a separate disbursement and
subject to tax withholding in accordance with IRS regulations.
4:24.4 Night Differential Pay
Employees who are assigned to perform their duties between the hours of 6:00
p.m. and 6:00 a-m- for a special project (and for whom the majority of hours fall
after 6:00 p.m.) are eligible for night differential pay at the rate of$2.50 per hour.
This does not apply to employees assigned to standby duty and receiving
standby pay.
Night differential pay will be subject to the following regulations:
• Night Differential schedules must be pre-approved by the Department
Head;
■ Night Differential amount paid will be$2.50 per hour;
• Employees on "stand-by" and receiving stand-by pay who are called
back to work are not eligible for Night Differential, because they have
City1PDEO Memorandum of Understanding Page 4 of 12
I Adopted June-12,2011 8.2017
already been compensated through the 'stand-by' and 'call-back'
provisions;
• In order to qualify, the majority (greater than 50% fifty percent) of the
work must be performed between the hours of 6:00 p.m. and 6:00
a.m.
434.5 Working on Holidays
Non-exempt employees may be paid at the overtime rate when required to work
on a scheduled holiday. In order to receive the overtime rate for holiday work, the
following conditions must be met:
• The employee must work at least forty 40 hours in the same
workweek the holiday falls in, (Holiday hours count as-towards hours
worked when computing the total for the workweek);
• The employee cannot have been scheduled an alternate day off in the
same workweek;
• If the employee takes sick or vacation time of during the same
workweek, such time shall not be counted as hours worked for the
computation of overtime.
ARTICLE 5—BENEFITS
The City's Personnel Ordinance shall govern the extent to whisfa eligibility for
benefits.-are riven anrf maintained Benefits in place on July 1, 2017, shall
continue during the term of this agreement unless the PDEO and City meet and
confer, and reach agreement, on proposed changes. The City agrees to meet
and-confer with the PDEO p or t„any final decision by the City to change any
c6urrent benefits rdur ng-the term of this+ MO I over the effects of much ohar,no
5.1 Employee Flexible Benefits—"Cafeteria Plan"
The City shall provide its employees with health, vision and dental plan benefits
through an IRS Section 125 Flexible Benefits Plan. This plan is referred to as the
"Cafeteria Plan" because it offers a "menu" of benefits choices. The plan
provides premium coverage for health, dental and vision insurance plans. In
addition,-Tthe City will provide a flat $50.00—> monthly as a -flex plan credit
componont to the cafeteria plan which can be used toward the purchase of
benefits, placed in a Flexible Spending Account or received as taxable cash via
payroll. Employees who choose the lowest cost health plan available are eligible
for additional flex plan credits, with the amount based on family size as follows:
City/PDEO Memorandum of Understanding Page 5 of 12
Adopted June 12,201-4.8,2017
Single: $50 monthly
Two-Party: $75 monthly
Family: $100 monthly
Those employees who `opt out' of the City provided health plans shall receive a
flat$150.00/-monthly additional credit to the flex plan credit in lieu of coverage.
{ 5:(a)2Health Insurance Benefits
The Flexible Benefits pPlan will provide premium coverage (with no employee
contribution) for employees and their dependents that-who choose a plan other
than PersCare (the most expensive PPO (PersCare at the time of adoption of
this MOU)—Employees who choose the PersCare PPO will be responsible for
paying the difference in premium between PersCare & PersChoice through a
pre-tax payroll deduction. If-CaIPERS changce—the names of the plans, this
provision will still apply to the highest cost plan.
Example(20142017 family rate):
Plan Name Premium City Paid Employee Pays
Kaisef $1,567.25 $1,567.25 �$0,00 _
Blue Shield HMO $ 5 2,023.97 $-4,412.352 0223.97 $0.00
PersChoice PPO $ .8F5 1,857.52 $ 9 1,857.52 $0.00
PersCare PPO $1,659.37 2,085,82 $ 9-1 $67.52 228.30
1,857.52
Eligible depeh4aRtsdependents for Health Care Coverage are defined by
CalPERS and include; spouse, domestic partner, and children (including foster,
step and economically dependent) up to age 26-
5.(b)3Dental Benefits
The City shall provide its employees and eligible dependents with Dental
Benefits. Eligible dependantsdependents for Dental coverage are Sspouse,
Ddomestic Ppartner and children (including foster, step and economically
dependent) up to age 26.
The basic Dental benefit shall provide a maximum dollar limit of $2,000 per year
along with additional orthodontia and implant coverage ($1,000 lifetime benefit at
a 50%co-pay).
+c:1 y Vision Benefits
The City shall provide its employees and eligible dependents with Vision benefits.
The plan will provide basic exams and single vision lenses annually. It will also
provide frames, up to $120.00, every 24 months. The benefit will include an
I option for contact lenses. Eligible dependant-sdependents for Vision coverage are
City/PDEO Memorandum of Understanding Page 6 of 12
I Adopted June 12,2014 8 2017
I Sspouse, gdomestic Ppartner and children (including foster, step and
economically dependent) up to age 26.
5.25 Retiree Health Stipend Program
The City offers a Retiree Health Stipend Program to assist long-term employees,
hired on or before December 31, 2014, in offsetting the cost of health insurance
in retirement. The program's provisions are dependent on hire date and are set
forth in a Resolution adopted by City Council and included here as Appendix B.
56-a. Funding for For The the Retiree Health Stipend Program
The City maintains an independent trust fund for the purpose of
providing retiree health stipend payments. An actuarial report is
used to determine the funded status of the plan, which is reported
in accordance with Governmental Accounting Standards Board
(GASB) Statement 45. Future contributions to the fund will be
subject to actuarial reporting and Council approval during the yearly
budget process.
15.3 7 Retiree Health Savings Plan (RHSP) and 401a Plan for Post-
Retirement Health Benefits
The City and the PDEO agree to meet and confer over the terms and conditions
applisab-le-te-th-e-ereation-ef-a-40-4-a-plan-fer-post-retiremefit-he-alth-laanefits--fef
new employees hired after its implementation date. This program would be
voluntary for existing employees. January 1, 2015 is the planned start date.
Employees hired on or after January 1, 2015 are automatically enrolled in the
City's Retiree Health Savings Plan and subject to a mandatory contribution of 1%
of base salary. The City will contribute a matching 1%of base salary to the plan.
City contributions are subject to a five-year vesting schedule. The plan is subject
to IRS regulations and contributions are non-elective. Employees may direct the
investments of their individual accounts. The intended purpose of the plan is to
provide employees with a tax advantaged savings vehicle for post-retirement
health benefit premiums.
Employees hired after January 1, 2015 are also eligible to participate in a 401A
plan for tax deferred savings. Employees may contribute up to 10°/0 of salary
and the City will make a matching contribution of up to 2% of salary. This plan is
subject to IRS regulations. Elections must be made within 30 days of hire and are
non-revocable.
Detailed plan documents are available on the City's Intranet and through the
Human Resources Department.
City/POEO Memorandum of Understanding Page 7 of 12
Adopted June 12,2014 8,2017
I 5.48 Short Term Disability Insurance
The City agrees to offer a voluntary program of Short Term Disability Insurance
which interested employees may purchase through payroll deduction. This plan
is not intended to take the place of accrued sick leave. It is provided as a"safety
net"for those employees who choose to purchase it.
15.59 California Public Employees Retirement System(CaIPERS)Contract
Employees hired BEFORE September 1,2011:
Regular employees hired prior to September 1, 2011_will be enrolled in CalFERS
under the retirement formula of 2.7%at age 55.
Effective July 1, 2012, °Employees shall pay the full 8% of salary, employee
portion, to CaIPERS. The City will cease paying any part-of the "employees"
reforc wi#1 tae�er oc repert;EPMCI. rComment oak I don't think we need to include
this—it's been 5 years and Employer Paid Member
Contributions(EPMC)can't be added back under
Along with the 2.7% @ 55 formula the following benefits are included in the Pension Reform.
CaIPERS contract for employees hired prior to September 1,2011:
(a) Post-Retirement Survivor Allowance (PRSA) 50%. Upon the death
of a retiree, the PRSA, 50% of the unmodified allowance, will
continue to an eligible survivor.—Section 21624/21626
(b) Increased Level of 1959 Survivor Benefits (level 2) (Benefit payable
to eligible survivors if the member's death occurs during
employment.)—Section 21572
(c) Credit of Unused Sick Leave. Any unused sick leave days will be
converted to service credit at the rate of 0.004 years of service for
each day of sick leave, provided there is less than 120 days
between the member's separation date and retirement date. —
Section 20965
(d) Industrial Disability Retirement. A miscellaneous member may
qualify for an Industrial Disability Retirement (IDR) if they are
unable to perform the duties of their job because of a job-related
injury or illness. —Section 21151
(e) Improved Non-Industrial Disability Allowance. It a member retires
on a non-industrial disability, the allowance would be equal to 30%
of final compensation for five (5) years of service credit and 1% for
each additional year of service credit to a maximum of 50% of final
compensation.—Section 21427
City1PDEO Memorandum of Understanding Page 8 of 12
I Adopted June 12,2011 8,2017
(f) One-year Final Compensation (Final compensation calculated
using the last (or highest) twelve (12) consecutive monthly pay
rates.)—Section 20042
(g) COLA 2% - Beginning the second 2r'd calendar year after the year
of retirement, retirement and survivor allowances will be annually
adjusted on a compound basis of 2% maximum. However, the
adjustment may not be greater than the change in the Consumer
Price Index.—Section 21329
(h) Retired Death Benefit $500 — Upon the death of a retiree, a one-
time lump sum payment of $500 will be made to the retiree's
designated survivor(s), or to the retiree's estate.—Section 21620
Employees hired AFTER between September 1, 2011 and December 31,
2012 and Classic Members:
Regular, full-time employees hired between September 1, 2011 and December
31, 2012 and regular part-time employees who exceed worked more than 1,000
hours per fiscal year, hired after September 1, 2044, as well as Classic Members
as referenced below,will be enrolled in CaIPERS under the retirement formula of
2°I0 at age 55.
Effective July 1, 2012, or earlier if changes are made to the California Pki-`}:ic
Employment Law, °Employees in this tier shall pay the full 7% of salary to
CaIPERS.
Along with the 2% C 55 formula, the following benefits are included in the
CaIPERS contract for these employees hired after September 1. 701 1:
(a) Post-Retirement Survivor Allowance (PRSA) 50°/0. Upon the death
of a retiree, the PRSA, 50°I0 of the unmodified allowance, will
continue to an eligible survivor. —Section 21 624/2 1 626
(b) Increased Level of 1959 Survivor Benefits (level 2) (Benefit payable
to eligible survivors if the member's death occurs during
employment.)—Section 21572
(c) Credit of Unused Sick Leave. Any unused sick leave days will be
converted to service credit at the rate of 0.004 years of service for
each day of sick leave provided there is less than 120 days
between the member's separation date and retirement date. —
Section 20965
(d) Industrial Disability Retirement. A miscellaneous member may
qualify for an Industrial Disability Retirement (IDR) if they are
City/PDEO Memorandum of Understanding Page 9 of 12
I Adopted June 42,-201'1 8,2017
unable to perform the duties of their job because of a job-related
injury or illness. —Section 21151
(e) Improved Non-Industrial Disability Allowance. If a member retires
on a non-industrial disability, the allowance would be equal to 30%
of final compensation for five (5) years of service credit and 1% for
each additional year of service credit to a maximum of 50% of final
compensation. —Section 21427
(f) COLA 2% - Beginning the second 2"J-calendar year after the year
of retirement, retirement and survivor allowances will be annually
adjusted on a compound basis of 2% maximum. However, the
adjustment may not be greater than the change in the Consumer
Price Index.—Section 21329
(g) Retired Death Benefit $500 — Upon the death of a retiree, a one-
time lump sum payment of $500 will be made to the retiree's
designated survivor(s), or to the retiree's estate.—Section 21620
Employees hired AFTER January 1, 2013:
Employees hired on or after January 1, 2013, are subject to the Public
Employees Pension Reform Act (PEPRA) and receive benefits as classic or new
members based on the terms of PEPRA as defined by CalPERS. the act.
Those designated as "New" membersjno prior CaIPERS service or greater than
a six-month break in service) are enrolled in the retirement formula 2% @ 62 and
subject to the terms outlined in PEPRA.
Members defined by CaIPERS as "Classic" (those with qualifying CaIPERS
service within the prior six months) are enrolled in the retirement formula 2% @
55 as noted above.
5.5 Sick Leave Accrual and Maximums
All employees hired on or after July 1, 2017, shall be subject to a maximum sick
leave accrual of 500 hours. Such employees who reach the maximum shall
cease to accrue sick leave until such time as their balance falls below 500 hours,
at which time they will begin accruing at the normal accrual rate until they reach
the maximum.
Employees hired on or BEFORE June 30, 2017:
Beginning July 1. 2022, employees hired on or before June 30, 2017, shall be
subiect to a maximum sick leave accrual of 500 hours with the following
provisions:
City/PDEO Memorandum of Understanding Page 10 of 12
I Adopted June 12,2014 8,2017
a. Hours in excess of 500 will not be forfeited. They will remain in the
employee's account and may be used for paid sick leave or
converted to pension service credit at retirement (subject to the
rules of both programs.)
b. Hours in excess of 500 will NOT be eligible for "cash-out" on or
after July 1, 2022. The balance up to 500 hours may be cashed out
according the schedule contained in Palm Desert Municipal Code
[PDMC) Section 2.52.710.
c. Employees having more than 500 hours will cease to accrue sick
leave until such time as their balance falls below 500 hours, at
which time they will accrue the regular accrual rate per pay period
until they reach the maximum.
Both parties agree to meet and confer regarding the terms and implementation,
of a policy allowing all employees having reached the 500 hour maximum to
"cash-out" up to 40 hours, once per calendar year, in accordance with the
schedule in PDMC Section 2.52.710, which will begin on or after July 1, 2022.
5.6 Vacation Leave Accrual and Maximums
All employees hired on or after July 1, 2017, shall be subject to the following_
vacation accrual schedule:
• All employees - two-weeks + 1 day per year of service, up to a maximum
of 10 additional days per year{total of 20 days per year):
• Group B (mid-mgmt) — additional one week for up to a maximum of 25
days per year;
• Group A (mgmt) — additional two weeks for up to a maximum of 30 days
per year.
• Group X—per contract.
All employees hired on or after July 1, 2017 shall be subject to a maximum
accrual balance equal to two times their annual accrual rate. At no time may
their balance exceed that amount. If the maximum is reached the employee will
cease to accrue vacation leave until such time as their balance drops below the
maximum {this can occur at any time during the year.)
City/PDEO Memorandum of Understanding Page 11 of 12
Adopted June 1.27-2044 8,2017
6. Cellular Phone Stipend
I Designated employees %A i I may ay receive a stipend for business use of their comment fk 7 issues that nuke this-may"
not personal cellular phone. Employees are designated by their Department Director one milleingIsegenetCityal o owned
phoneoyees and
need
one aye tieing issuod a City owned phone and
and must be approved by the City Manager prior to the granting of the Cell ••incidental:.use doesn't qualify for a stipend.
Phone Stipend. The terms and conditions of the stipend program are adopted by
City Council Resolution and employees must sign an acknowledgement prior to
receiving the stipend. The stipend is paid through payroll, is considered taxable
income and is subject to withholding.
7. Alternative Work Schedules
The City is in support of adopting an Alternative Work Schedule (specifically a
9/80) and agrees to develop a policy for implementation. The policy will be
developed with input from the 9/80 Schedule Task Force which consists of
members of management. professional staff and PDEO members and contains
representatives from each department. The final policy must comply with the
Fair Labor Standards Act(FLSA)and be approved by the City Council.
City/PDEO Memorandum of Understanding Page 12 of 12
Adopted June 12,2114 8.2017