HomeMy WebLinkAboutRESO 6180. .. ...
RESOLUTION MO. 6180
RBSOLOTION OF TH! COOHCIL OP THE CITY 0!' PALO ALTO
ADOPTING A COflPBNSATION PLAN POR MANAGEMENT PERSONNEL
AND COUNCIL-APPOINTED OFFICERS AND RESCINDING RESOLO-
TIOH NO. 6060 AS AMBNDED BY RESOLUTION NO. 6113,
RBSOLOTIOH NO. 6148 AND RESOLOTION HOw 6157
The Council of the City of Palo Alto does RESOLVE as follows:
SBCTIOH 1. Pursuant to the provisions of Section 12 of Article
III of the Charter of the City of Palo Alto, the Compensation Plan as
set forth in Bzhibit •A• attached hereto and made a part hereof by
reference, is hereby adopted for 11anageilent personnel and council-
appointed officers effective the pay period including July 1. 1983.
SECTION 2. The Compensation Plan adopted herein shall be adainie-
tered by t6e City Manage~ in accocdance with the Merit Syste• Rules and
Regulations ..
SBC'f'IOR l. The City Controller is hereby authorized to iaple11ent
the C011pensation Plan adopted herein in his preparation of forthco•ing
payrolls. Be is further authorized to make changes in the titles of
employee classification• identified in the Table of Authorized Per-
sonnel contained in the 1983-84 budget if such titles have been changed
by the Compensation Plan.
SBCTIOR 4. Resolution No. 6060 Resolution No. 6113, Resolution
No. 6ti8, and Resolution Ho. 6157 are hereby rescinded.
SBCTIOll s. The Council finds tb~t this is not a rroject under the
California Environmental Quality Act and, therefore, no environaental
impact asaesSJ1ent is necessary.
IllTRODOCBD DD PASSED:
AYBS: Bechtel, Cobb, Eyerly, Fazzino, Fletcher, Klein, Levy~ Renzel.
Witherspoon
HOBS: None
A8ST.Blft'IOllS: None
i ABSDrf s None
APPROVED:
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CITY OF PALO ALTO
CC»IPENSATION PLAN
Management and Council Appc>intees
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Effective: June 25, 1983
Mended: Septaber 12, 1983
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COMPENSATION PLAN FOR THE CITY OF PALO ALTO
Management Personnel
SECTION I. MANAGEMENT SALARY PLAN
A. Man~ement Sa 11 r,y Po 11 cy
The City's policy for management salaries is to establish and maintain a general
salary structure based on ma~ketplace nonns and internal job alignment with broad
salary grades and ranges. Structures and ranges w111 be reviewed annually and
~pdated as nec~ssary based on marketplace survey data9 inte~nal relationships,
and City ffnancfal conditions. Special needs of management categories including
supervisors, adm1n1str!tors, professional$ and Mftnagers will be addressed.
Individual salary edjustlRents will be considered by the Council-appointed officer
based on (1) perfonnance factors 1nc1ud1ng achievaaent of predetenn1ned object;ves;
(2) pay structure adjustments• and (3) City financial conditions.
B. Basic Plan Elements
Structure. The salary plan will include a salary stnttture consisting of approxi-
mately fifty 9r1des. Each gradP. will have a eontrol pof,\t which is used for
budgetary purposes. All management positions will be assigned an appropriate
pay grade based on salary survey data and internal relationships. All positions
assigned to a pay grade will receive salaries which are no less than 25S below
the control point and no more than 151 1bove the control pc..int. Actual salary
within the range-is deter111ned by perfonrence. The nonaal working r1nge within
llhich mst actual salaries w111 fall wtll be within!. SS of the control point.
As Meded c_.t1t1ve •rketplaee studies will be 111de of 10-15 cities similar to Palo Alto tn nUllber of aployees, popul•t1on and services providP.d. These
studies will focus on general s1lar1 trends for groups of 111na9~nt positions
such as first line supervf scrs, adlllin1strattve, professional and top 111nagement.
Periodically, studies wtll mre speciftcally include position-by-position ccapari-
sons usfng •rketplace and intemal rellt1onsh1p data. Depending on the results
~these studies, the •tfNt pay gr1de structuNt Ill.I' be adjusted or fndlvfdual
itions 111.Y be reassigned to different pa; ·grades. Such 1djustments will only
• ect the salary acin1n1strtt1oa fr.-.ortt. No fnd1vfdual salaries will be
c nged becaus~ of structuP"a1 adjust.nu. •
Salar;y Increases. All 1nd1vfdul1 salary increases will be earned as a result of
performance, 1chieve11ent of object1Yes, or growth within the position (for recent
appointments). Two types of increases •Y be earned. Satisfactory and above
perfo,..rs Ny receive base pay increases (percentage of fixed dollar amounts
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COMPENSATION PLAN .. MANAGEMENT
P1ge Two
added to base pey). Gufdei1nes w111 be established for base pay increa3es.
T~e second possible type of increase 15 in the font of special perfonnance
preniums of from 1-151 -btsec:I on achievement of predetermined objectives
established under a performance planning and 1ppr11s1l progr1m. With rtispect to uch Mantgellftnt 91Ployee who 1s aw1rded Specfal Perlnnnance Premi&IJIS, each
calendar year the Cfty shall "p1ck up" such enployee 1s •ndatory contribution to
PERS to the exten~ vf the 111ployee's Special Perform1nce Prem1was. Such pick-up
contribution shall. to the extent provided here1n, be paid by the Cfty 1n lieu
of the e.ployee contr1but1ons notwithstanding the fact that such pfck-up contri-
butions may be designated as mployee contributions for purposes of PERS.
Special Performance Prem1wns are open to all satisfactory and above perfonners.
Requalificatfon is nece1s1ry for each appraisal period. Department head and/or Counci1-appo1nted officer approval ts re.quired for all .base pay increases and
perfonnance premhns.. All salaries. both base pay and performance prem1tans,
1m.1st fall w1th1n ~ grade 11•1t5-
au91et1ng. Eich year the City Manager will propose for Council appi"'Ovai a sa~ry budget incorporating the requests of.each Council-appointed officer
"'11ch will include 1110unts suff1c1e~t to inapleaent base pay increases and per-
fonn1nce prai111S. The salary increase budget w111 be based on the following
factors: C.pet1t1¥e arket, cMnges 1n internal pos1t1on relationships, and
the City's abii1ty to pay~ .
Perfor111nce Aeeraisal. Deter1t1matton of oerforw.nce w111 be 111.de annually by the Counc11-appo1ntid offtcer and c1e~rs.ent heeds. The following quest1~ns
w111 be addressed: Is the departllent, d1v1s1on, unft or 1ct1v1ty meeting its
objectives? Is the mployee Perf'Oftl1ng as a aanager 1n accordance w1th pre-
scribed duties and respons1b1Ht1es of a •nager? Ellployees who are appr11sed
as Sltisfactory or above wfll be e11g1ble for base pay and perfot"'lDlnce pr11111wns
tccord1ng to established gu1delfnes. The •nagement perfo,..nc;e plan will be
develepect by the 111Ployee and his/her supen1sor prior to .July of each year
and wtll cover the fiscal ,_r. the plan w111 nqu1re concurrence of the clepartaent bead •nd/or the Councf1-tppo1nted officer. Progress toward •eting
ol>lect1ves W111 be revtewed at 1-.st s•1-annually.. By .Ju1y of the following
year. supervisors w111 •ke 1 final cletenlinat1on on perfol"tlnce and •111 su.ke salary rec~t1ons to tbeir deplrtaent beads based on salary pa,y11ent guide-
lines.
c. t;!l.neJ!!!nt Salary Author1zat1on
1. Council-appointed officers are 1uthorfzed to Pl1 salaries in accordance with
this plan to non-tounctl-appohti.d •na~t mployees 1n an 111Dunt not to exceed the aggregate of apprond .anagaent pos1t10ftS budgeted at the control
r points 1ncltcated in Table I for the f1sca1 year 1983-84. In addition.
Counc11 ... ppo1nted officers 'In 119regate •~ authorized up to $100,000 to
apply ta.rd performnce premims for 1ndiv1dual Mnagtlllnt aployees who
qualify under the provtsions of this MlnagfMftt Salary Plan.•
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COMPENSATION PLAN -MANAGEMENT
Page Three
3. Individual managanent salarfes authorized by the Council-appointed
offfcer under the Management Salary Plan may not be less than 25S
below nor a>re than 151 above the control point for the individual
positions salary grade author1zed 1n Table I of this plan. A portion
of the authorized salary may be Jiven 1n the form of Special Perform-
ance Prem1UMs based on achfevement of objectives.
4. The Counc11-appofnted officers are authorized to establish such adminis-
trative rules as are necessary to 1mplement the Management Salary Plan
subject to the 11•1tat1ons of the approved salary increase budget and
the approved grade and control point structure.
5. In the event a downward adjus•nt of a position grade assigrwent in-
d1cates 1 reduction 1n the established salary of an 1ndi~fdual employee.
the Counc11-1ppotnted off1cer ~y. 1f cfrcunistances warrant. continue
the salary for such a.ployee in ~n uount 1n excess of the revised grade
11•tt for I reasonable eer1od of ti..e. Such tnter1M salary rates shall
be deftned 1s •r-r1tes.
SECTION II. SPECIAL COMPENSATION
Personnel covered by th1s cotnpensat1~n plan, 1n addit1on to the salary set forth
in the attached tables, may receive special c0111>ensation as follows. Eligibility
shall be fn conformance with the Mer1t Rules and Regulat1ons and Adllin1strat1ve
Directives fssu~d by the City flllnager for the purposes of clariffcatfon and
f nterpreta t 1 on. ·
A. Annual Adjustller.t
Annually, each aployee who holds a regular full-time appointment in the
11Unicipal service on or before July first and continues f n such status
through tf\e first day of Pay Period 25 (fn December) shall receive, 1n
addition to the salary prescribed herein. a salary adjustment equal to one
percent of the "employee's current annual Hlary; or at the •ployee's gt1on and subject to •nagment approval, 24 hours paid leave to be used
1or to the January 31 f011ow1ng. Annual adjust.nts shall be prorated
reflect appointment frm1 .January 1 through July of the current year,
o · fnterrupted service durtng the yeer, •
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C()IPENSATIOH PLAN -MANAGEMENT
Page Four
8. Overtime, Working Out of Classificat1on1 and In-Lieu Holiday Pay
Compensation for overtime work, and scheduled work on paid holidays, sha11 be
in conformance with the Merit Rules and Regulations and Administrative
Directives. Where management employees, on a temporary basis. are assigned
to perform all significant duties of a higher classification the City Manager
Wiil' authorize payment within the range of the higher classification.
C. Court Appearances
SWorn Police Personnal appearing in court for the People shall be compensated
as follows:
Period
1. Appearance on scheduled
day off.
2. Any or all court time
during scheduled shift,
or court time f s ime-
df ately beginning or
following shift.
3. Appearance on scheduled
work day but not during,
illllediately before er
1111Dediately after
scheduled shift.
D. Night Shift Premil.8
Rate
Time and one-half
s,raight title during
sijf ft, tfma and one-
~lf for periods
~fore or after
sqheduled shift.
Time and one·ha 1 f
Minimum
4 hours
None
2 hours
(2 hour minimum
may not run into
shift time)
Night shift differential shall be pat~ at the rate of 51 to regular full-time
employees who are regularly scheduled to work between 6:00 p.m. and 8:00 a.m.
Night shift prm1• will not be pa1cl for overtt11e hours worked or to Fire
personnel assigned to shift duty.
E. Uniform Purchase Plan -Pol fee Personnel
~1forms w11l be provided w1th replacmer.t provisions on &n as-needed basis in
nforMnce with department policy •
f. 6roup Insurance ..
1. Health Plan
The City shall pay all prem1utt payments on behalf of employees wh6 are
eligible for coverage under the health plans as described tn Sub-section
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COMPENSATION PLAN -MANAGEMENT
Page Five
(a) and (b). Any premium rate increases during the term of this compen-
sation plan shall be paid by th! City. The following options will exist:
a. Employee and dependent coverage under the existing Kaiser Health
Plan S Contract, including the rh·ug Plan III option.
b. Employee and dependent coverage under the existing City of Palo Alto
Employees' Self-Insured Health Plan with 1111.jor medical maximum of
$250,000 and pelvic examination benefit.
The City shall, upon submittal of evidence of payment, reimburse up
to $135 per quarter of medical plan premiums on behalf of 111anagement
employees who retire from the City under service or disability
retirements. The retiree may select any medical plan. The plan may
cover eligible dependents as defined under the City Employees' Health
Plan. No reinmursement will be made for plans providing benefits -
other than medical and health benefits.
2. Dental Plan
The City shall pay all covered plan charges on behalf of employees and
dependents of employees who are eligible for coverage and enrolled under
the existing City Dental Plan.
3. Bas~c Life Insurance
The City sha.11 continue the basic life insurance plan as currently in
effect for the teT'lll of this coq>ensation plan.
4. Long Tenn D1sab11 ity Insurance
The City shall continue the long term disability insurance plan currently
in effect for the term of this compensation plan. Employee coverage is
subject to a voluntary payroll deduction of the insurance preniUIR appli-
cable to the first $2.000 of lll'>nthly salary for Plan B or the first $1,800
of monthly salary for Plan A• the City will pay premi1111S in excess thereof.
For those employees without eligible de~~dents covered under the health
plan provisions.the C1ty·wi11 pey up to $8 per mnth toward long tenn
disability insurance premiUllS. For those employees without eligible
dependents covered under the dental plan prov1s1ons. the City will pay
t up to $12 per n>nth toward long tel"ll dfsabil ity insurance premh111s.
G. Poiice Department ... Personnel Development Prosrmn ..
Pursuant to adlltnistrat1ve rules goventing elfgfbflity and qualification. the following may be granted to sworn police personnel:
P.O.S.T. Intermediate Certificate:
P.O.S.T. Advanced Certificate:
51 above base salary
71tS above base salary
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COMPENSATION PLAN .. MANAGEMENT
P~ge Six
H. Management Benefit Program
All City staff management employees are eligible for Sections 1, 2, 3 and 4
of the Management Benefit Program. City Council Members are eligible for
section 3a only. Specified amounts under this program wf 11 be applied on a
pro rata basis for employees who are in a management pay status for less than
the full tiscal year.
1. Professional Development -Reimbursement
Reimbursenent for authorized self-improvement activities will be granted
up to a maximum of $500 per fiscal year for each management employee and
shall include the following benefit items as defined 1n Policy and Pro-
cedures No. ~-7:
a. Civic and professional association memberships
b. Conference participation and travel expenses
c. Educational prograft?S
d. Professional and trade journal subscriptions
e. Doctor-prescribed physical fitness program as indicated under 3b
of this section
2. Professional Development -Sabbatical Leave
Authorized pafd leaves of absence for up to one year will be granted in accordance with the following requireaents:
a. Slbbatfcal leave program shall be beneficial to the enployee•s Job assig,.nt.
b. An 81'ployee's job assfgrnent activity shall be adequately covered
during his absence with emphasis on the development of subordinates.
c. The 1.eave of absence period will be adequately coordinated with departmental prtorit1es and \«>rkload.
d. Leave of absence sabbaticals should be based on internship exchanges, tl and/or loaned executive arrangaents; sc:holastfc and/or a.uthorshfp progr111S; or educattCN'Nll travel-study plans.
• Leave of absence schedules wf11 be apportioned among all levels of aanage-
11ent and will be based on an evaluation of each emplo,YH's perfonnance
record. Each paid sabbat1e&1 leave will be 11•fted to a •xf .. of one.
year and not more than two aployees being on leave si11Ultaneously.
5abbat1ca1 laves lllUSt be cleared 1n advH:e and approved by Council-appointed officers and Council.
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CC14PENSATIOH PLAN ~ MANAGEMENT
Page Seven
3. Personal Health Program -Physical fitness
1. All management ~loyees will receive physical examinations in accord-
ance with Policy and Procedures No. 2-7.
b. In accordance with the reco11111endations of the medical doctor an employee
may undertake 1 prescribed physical fitness program. Employees partici-
pating in this activity.will be reimbursed under the Personal Development
Program.
4. Excess Benefit Rei'd>ursement
a. Life and LTD insurance premiums for City-sponsored plans.
b. Excess medical/dental expenses for employee and dependents wMch are
not covered by e.xisting City-sponsored plans.
c. Excess Hlf-1mprovemnt items which are otherwise approved but exceed
the reillbursament lfait under H. l. above.
If the full excess ben!ilfit reimbursement is not used during the fiscal year
the difference between the amunt used and the .axiaun (or pro rate •xiaan)
•Y be applied at tbe 111Ployee 1s option to deferred CQ111J>ens1tion under the
City Plan.
I. Auto.>bile Expense Allowance
for those empl~s whose duties require exclusive use of a City autolllobile, the
City Manager (£ in the case of Council-appointee! offtcen. the Citx Council)
•Y •uthor1 ze .,.,,..,t of $235 per mnt~ 1 n 1i eu thereof.
J. Parkins 1n Civic Center Gar••
The City shall provide employees parking privileges in the Civic Center Garage
at no cost to such mployees.
k. T A11ownce
llllJor
Y1ce MQor
City Manager
City Attorney
per Pay Period
$69.~3
$46.15
$69.23
$46.15
fe_r Month {Approx.)
$150.00 •
$100.00
$150.00
$100.00
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CCM'ENSATION PLAN -MANAGEMENT
Page Eight
L. Re1ni>ursement for Relocation Expense
Policy Statement
The City of Palo Alto will provide a Basic Relocation Benefits Package for all
new 11anagement employees. In addition, upon the approval of the City Manager or designated subordinate, Relocation Benefits will be available to non-
mnagenmt positions. Provisions of •Optional Benefits" or portions thereof. ire intended only for rare instances ar.d require the approval of the City Manager.
Procedure
Qua 11 fi cat1 ons
In order to qualify for relocation benefits, the fol lowing conditions must be
met:
1. The et11Ployee must qualify for Moving Expense Deductions as contained fn
the Federal Tax Regulations for tl'IP. year f n which the move occurred.
2. Actual relocation. or contracts designed to establish a fixed domicile.
shall occur within six mnths of the initial date of emplo.)'llent.
3. Existing 1111Ploy~ proa>ted to a covered position are not eligible.
4. Recordkeepfng requirelleiits will parallel those req..i1red for expense
re1111bursement for travel. conferences and meetin95.
5. Provisions of opticnal benefits 1s contingent upon acceptance of a one-year
eq>loymnt contract with the City. Failure to complete the full one-year
term will require repa,Ymftt of those benefits on a pro-rata basis cmnputed
on the actual time of City service.
hsf c Pact.age
1. ~t Trip -Actual amt reasonable expenses will be provided or re ed by the City for travel costs, meals and lodging for candidates
out of the local area. The local area is defined as all cities or towns
located within 1 100 lllile radfus of the City of Palo Alto. Travel costs
re111bursemnt 1s restricted to the lesser of coaK>n carrier rates or the
' l
established City rate for automobile use. Costs for 111e1.ls are restricted
to the established City per d1e11 rates.
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CCM>ENSATION PLAN ... MHAGEfll:NT
Page Nine
2. En Route ~ses -Direct cOllllOn carrier transportation will be provided
in full foral family members. AutORX>bile expenses are limited to two
vehicles at the established City rate with a minimum of 350 miles per day
to be traveled. Per diem 1s allowed at established City rates for employee
and spouse/mate and at SOI of the employee rate for dependents. Travel days
allowed are limited to the actual mileage divided by 350 miles per day.
Lodging fs reflllbursed in full on an actual and reasonable basis for all
fllllily lllB>ers.
3. Household Goods Shipment -Full costs will be paid for the shipment of
all personal ftems normally considered •Household Goods." Items excluded fnclude recreational vehicles, firewood, building inaterfals1 sand, boats,
airplanes, and perishable items such as food or plants. Shipment of up to
WC> automobiles is permitted. Storage cf household goods will be provided
for 30 days.
4. Professional Relocation Counse111nf -An agency designated by the City
wtll provide hilp to the anployee n their relocation efforts. In_fonnatfon
to be provided includes items such as finaiu:ing. home and rental locations,
transportation. weather patterns,. schools~ recreat1on. etc.
Optional Benefits
1. D1s~sa1 and Purchase Costs ... The City will cover costs that a.rise in the isposal arid/or purcfiise of residences:
a) Costs to break an existing 1 e1se wi 11 be covered up to a tota 1 payment
of three t1111S the current monthly rental rate.
b) Real estate cOlllll'f ssions up· to 6S of the sales price.
c) Non-recurring closing costs on both purchase and sale ("Points" on
purchase of res1deflce are specifically excluded).
2. BriGB; Loan -The City will an-ange for a 90 day interest free loan up tO Of an employee's equity in their current residence as detenained by
three independent appraisals. The assumd Fair Market Value will be the
average of the two highest appraisals, providing those appraisals are
w1 thin 51 of each other.
3. Third Party Purchase -The City trill arrange wtth a third party to provide
'· an iliilidiate offer of purchaH for an employee's current residence. (This i 1tea .ould include 111n.v of the baefits cited in options above.)
• 4. MDrt911J Interest D1fferent1a1 P~ts -The City will provide Interest Riti~ferentla1 Payments uridir~guide11nes of the Federal Un1fonn
RMl Prope~ Acquis1tim and_ Relocation Po11cfes Act up to a axt111111 of
$300/month for 3' mnths.
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• ' m.PEHSATION PLAN -MANAGEMENT
Page Ten
5. Miscellaneous Expense -The City will pay Miscellaneous expenses asso-
ciated With the relocation. The amount shall not exceed $1,000.
6. Tnf!rary Lfvinf Exc:se -Up to thirty (30) days tellporary 11v1ng expenses Wt bi 1v111a6 e un er the following guidelines:
Lodging -lOOS of actual and reasonable costs for all family members.
Per Diem • lOOS of the established Cfty rates for employee and spouse/mate
and 501 of the established City rate for dependents for the ·
first 15 days• SOI of the establfshed City rate for enployee
and spouse/mate and 25% of the established City rate for
· dependents over the 1 ast 15 days.
Car Rental -Up to 30 days for -single· vehicle 1s available until such
· t11Ee as the e11>loyee's personal vehicle becomes available.
7. Househunting ~se -·The Cfty wtll provide expanses or reilllbursement for one hOUiellng trip for both e11ployee and spouse/111te. The trip
shall be Tillited to 1 maxi .. of seven days. Travel expenses -are limited
to the lesser· of com1n carr.ier rates or the established City rate for
automob11e use.· Lodg1n,.fs provided on an actual and reasonable basfs.
Per Diem exri..ses are ·1 lowd accordfng to the estab11shed City rates. ·
Expenses for children are no~ covered.
Rewl1ttons ud Gufdeltnes
1 •. The Ctty Manager. or designated subord1Mte. will 1nst1tute and revise
tntemal p~edures to assure the effic1"ent delivery of services to the
new employee and •intlrize costs to the Cfty. This will include the deter-
lrlniation of whether direct Cfty payments, advance of funds or employee
re1~aen~ is mst appropriate for·• given progr111 element or employee.
l.. The City Manager, or.designated s.ubordinate, w1n detera1ne the approp-
riateneS$ of inclusion of specific 1Ulls in this progra that &rise as a result .of •grey a~s.M
3. Expenses incurred by t,,_ eilployee·during ~location which are not covered
are:
a} Pa)'llents to friends for •ssistanee. t
lb} ~ne 9'9pairs.
• c) Costs tncurred·during ihe relocation but not dfrectly related to
· ·personal transportati'Al or forwarding of household belongings, 1.e ..
uninsured losses during transit, entertahilent expenses, etc.
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C<JltPENSATIOH PL.AM -JWCAGEMENT
Page Eleven
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4. Budgeting of all Relocat;on Expenses will occur in the Personnel and
Utilities Departments.
5. Upon approval of the City Manager. provision of benefits under the
sectior1 Househunting Expenses and Professional Relocation Counselling
may be prov1did before an emp1oyee formally accepts an offer of employ-
snent with the City.
M. F.et 1 remen t
Effective with the pay period including July 1. 1983, the City shall "pick-up"
(pay) seven percent (7S) of the eaployee's 11andatory Public Employees' Retire~
ment System (PERS) contribution. Such pi~k-up contributions shall be paid
by the City 1n lieu cf employee contributions notwithstanding the fact that
such pick-up of contributions May be designated 1$ employee contributions
for purposes of PERS. This provision shall appl.Y to the City Manager,
Attorne.x.._ C1 erk end non-Counci 1-appoi nted regy 1 ar management eme 1 oyee_!.
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c1n OF PALO ALTO C<ll'ENSATIC* PLAN
Council-Appointed and Elected Officers
APPROX. CLASS CODE TITLE AKNUAl.
001 City Counc 11 pe..-son 4,800
002 C1ty Manager 72,500
003 City Attorney 57,.500
004 City Contro 11 er 46,596
005 City Clerk 38,652
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APPROX.
MOffTHLY
SALARY Bl-WEEKLY
400 184.62
6,042 2D788.46
4,792 2.211.54
3883 1792.00
3221 1486.40
TABLE I ' . .
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t: r r i
r
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EFFECTIVE DATE
PAY PERIOD HOURLY INCLUDING t·
' ~ ~ January 1, 1982
• :· ~ 34.86 June 25, 1983
'· 27.65 June ZS, 1983 l
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22.40 July 1, 1982
I
E 18.58 July 1, 1982
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CITY OF PALO ALTO
CCf1PENSATION PLAN
Man,agement and Council Appointees
''
Effective: June 25, 1983
Amended: September 12, 1983
\
COMP£MSAT10H PLAN FOR THE CITY OF PALO AL10
Management Personnel
S£tTiON 1. MA.\AGEMENi SALARY PLAN
This management salary p 1 an app 1 i ~s t-o a 11 ~Jn.~~~~~~~~~~~~:-:-:~..-and · n in ffi
lliill authorize S~ial Perfonnance PretliUllS for Counci1-aru?Qinted officers. Each t'OUnc;1Aappointi<roff1cer shill be thi responsible dec:TsiOn-ma~er under this Plan
for those esployees in depa-rtments under his/her control.
A. Management Sa1arx Policy
The City•s policy for management salaries is to establish and maintain a general
s1lary structure based on m&~ketplate nonns and tnternal job alignment with broad
s1l1ry grades and ran9@s. Structures and ranges will be reviewed annually and
updated as necessary b.ssed on 111a.rketplace survey dat•. 1nternal relationships,
and City financial conditfons. Special needs of management categories including
supiervisors, edlninistrators& profes~ionals and managers will be addressed.
Individ~el selary adjustments will be considered by the Council-appointed officer
based on (1) perfon11r.ce factors including achieveaent of predetermined objectives;
(Z) pay StnKture 1djusti11ents; and (3) City financial conditions.
B. Basic Flen El111ents
Structure. The s11ary pl•n will 1nc1ude a salary structure consisting of approxi-
iMtely 11fty grtdes. Each grm will have a control point which is used for
budg.tary pyrpcses. All t111nage.nt positions will be assigned an appropriate
pay gnde ba1ed on salary survey dat4 and 1ntema1 relat1cnsMps. All positions
assigned to a ~Y grlde w111 receive salaries watch are no less than 251 below
t~ control point •ftd no ~re thin 15S abf>ve the control point. Actui.il salary
within the range h detenn1ned by perfo,.nce. The nonul _,rldng range within
which 111>st •ctuel s1t1r1es will fall wfll be within.! SI of the control point.
As flAteded c~titive 1111rket~lact studies will 0e 111de of 10-lS cities similar
to P1lo Alto tn n~r of .-plO.YffS, population and ser"ices pr'\wided. These
studies will focus on general s11ary trends for groups of 111na~t positions
such as first line iupervisors, adllin1str1tive, professional and tDp 111nageaent.
PeriocUc1lly, studies will •re spec1f1ca11y include posit1on ... by .. position cQllPlri·
sons using marltetp1oce and tni.mai rellt1onship dlta. Depending on tbe results
of these studies. the entir• pay grade structure MY be adjusted or 1nd1vidua1
positions NY be reassigned to different pay grades. Such adjustmnts will only
1ffect the salary adlatnistr1t1on framework. No individual ulades will be
changed because of structu1'11 1djust11ents.
Sala"l Increases. All 1nd1vtdual sal1ry 1ncre1ses will be earned as a result of
perTonea9'ce, acfi1eve.nt of objectives. or growth within the position (for recent
appointlleftts). Two types of increases •Y be urned. Satisfactory and above
perforMrS 1111 receiYe base pay increases (percentage of fi.xed dollar amounts
e
COMPENSATION PLAN -MANAGEJ1ENT
Page Two
added to base pay). Guidelfnes w11l be established for base pay 1ncreases.
The second possible type of increase is in the fonn of special perfonnance
premiums of from 1-15% based on achfevement of predetennined objectives
established under a perfonnance planning and appraisal program. With respect
to each Management employee who 1s awarded Special Perfonnance Premiums, each
calendar year the City shall •pick up" such employee's mandatory contribution to
PERS to the extent of the employee's Specfal Perfonnance Premi1.111s. Such pick-up
contrfbutfon shall, to the extent prov1ded herein, be paid by the C1ty 1n lieu
of the employee contributions notwithstanding the fact that such pick-up contri-
butions may be designated as employee contributions for purposes of PERS.
Special Perfonnance Prem1"11S are open to all satisfactory and above perfotmers.
Requa1if1catfon is necessary for each apprafsal period. Department head and/or
Council-appointed officer approval 1s required for all .base pay increases and
perfonnance premiums. All salaries, both base pay and performance premiums,
must fall w1th1n pay grade 11m1ts.
Budgeting. Ea•·~ year the City Manager will propose for Council approval a
salary budget incorporating the requests of.each Council-appointed officer
which wf ll include amounts suff1c1ent to imp1Ellle1lt base pay increases and per-
formance premiums. The sa1ary increase budget w111 be based on the following
factors: Compet1tive market, changes 1n internal pos1t1on relationships, and
the City's ability to pay. .
Performance Appraisal. Determfnat1on of perfo}"lllnce w111 be ~.ade annually by the Counci1-appo1nted officer and ~rURent heads. The fo11ow1ng quest1ons
w111 be addressed: ls tfie department, d1visfon. unft or activity meeting its
objectives? ls the arployee perto,.rfng as t manager f n accordance with pi"e-
scrf bed duties and responsfbtl1t1es of a .anager? Ellp1oyees who are appraised
as satisfactory or above w111 be e11g1b1e for base pay and perfortnance premiums
according to e~tab11shed qu1delfnes. The 111nage11ent perfoyance plan w111 be
developed by the 911ployee and his/her superv1sor prior to ~uly of each year
1nd wtll cover the fiscal YQr. The plan wfll requ1re concurrence of the
department bead and/er the Counc11-tppo1nted offtcer. Progress toward meeting
objecthes will be rev1twed at l~st sem1-1nnually. By July of the following
year, supen1sors w111 aake 1 final detQnninatfon on perfol"l\ilnce and will uke
salary reccmaendations to their departlnent heads based on salary pl)'ment guf de-
11nes.
C. Management Salary Authorization
,
l. Councf 1-appo1nted officers are authorized to pay salaries in accordance with
this plan to non-Counctl-appotntfd managS1ent aployees f n an .aunt not to
exceed the aggregate of approved management pos1t1ons budgeted at the control
points fndicated in Table J for the fiscal year 1983-84. In 1ddition1
Counc11-appo1nted officers 1n aggregate ire authorized up to $lOOIJOOO to
apply toward perfor.ance prwrims for individual Mnagment 911>loyees who
qualify under the provisions of this Managlllel'lt Salary Plan.
2.
·.
COMPENSATION PLAN -MANAGE~ENT
Page Three
3. Individual management salaries authorized by the Council-appointed
officer under the Management Salary Plan may not be less than 25%
below nor more than 15% above the control point for the individual
positions salary grade authorized in Table I of this plan. A portion
of the authorized salary may be given in the fonn of Special Perfonn-
ance Premiums based on ach1evement of object;ves.
4. The Council-appointed officers are authorized to establish such adminis-
trative rules as are necessary to 1mplement the Manageme~t Salary Plan
subject to the ltm1tations of the approved salary increase budget and
the approved gr~de and control point structure.
5. In the event a downward adjustment of a posft1on grade dSSignment in-
d1cates a reduct1on tn the established salary of an indfvidual employee,
the Counc11-appotnted offtcer may, if circumstances warrant, continue
the salary for such employee in an amount 1n excess of the revised grade
limit for a reasona~le eertod Of tfme. Such 1nterim salary rates shall
be defined as "Y ... rates.
SECTION II. SPECIAL COMPENSATION
Personnel covered by thts compe~sat1on plan, in addition to the salary set forth
in the attached tables, may receive special compensation as follows. Eligibility
shall be fn conformance with the Mer1t Rules and Regulations and Admfnistrative
Directives fssued by the Cfty Manager for the purposes of clarification and
i nterpreta t f on.
A. Annual Adjustment
Annually, each employee who holds a regular full-time appointment in the
munfcipal service on or before July first and continues in such status
through the first day of Pay Period 25 (in December) shall receive, in
addition to the salary prescribed herein, a salary adjustment equal to one
percent of the employee's current annual salary; or at the employee's
option and subject to management approval, 24 hours paid leave to be used
prior to the January 31 following. Annual adjustments shall be prorated
to reflect appointment from January 1 through July of the current year,
or interrupted serv1ce durtng the year.
COMPENSATION PLAN -MANAGEMENT
Page Four
8. Overtime, Working Out of Cla~sification, and In-Lieu Holiday Pay
Compensation for overtime work, and scheduled work on paid holidays, shall be
in conformance with th~ Merit Rules and Regulations and Administrative
Directives. Where management employees, on a temporary basis, are assigned
to perform all significant duties of a higher classification the City Manager
may authorize payment within the range of the higher classification.
C. Court Appearances
Sworn Police Personnel appearing in court for the People shall be compensated
as follows:
Period
1. Appearance on scheduled
day off.
2. Any or all court time
during scheduled shift,
or court tfme is 11111e-
diately beginning or
following shift.
3. Appearance on scheduled
work day but not during,
inmediately before or
innediately after
scheduled shift.
D. Night Shift Premium
Rate
Time and one-half
s,raight time during
s~1ft, time and one-
hqlf for periods
btlfore or after
saheduled shift. !
Tilile and one-half
Minimum
4 hours
None
2 hours
(2 hour minimum
may not run into
shift time)
Night shift differential shall be pai~ at the rate of SS to regular full-time
employees who are regularly scheduled to work between 6:00 p.m. and 8:00 a.m.
Night shift premium will not be paid for overtime hours worked or to Fire
personnel assigned to shift duty.
E. Uniform Purchase Plan -Police Personnel
Uniforms will be provided with replacement provision~ on an as-needed basis in
conformance with department policy.
F. Group Insurance
1. Health Plan
The City shall pa,y all premiUll payments on behalf of employees who are
eligible for coverage under the health plans as described in Sub-section
COMPENSATION PLAN -MANAGEMENT
Page Five
(a) and (b). Any premium rate increases during the tenn of this compen-
sation plan shall be paid by the City. The following opt'ions will exist:
a. Employee and dependent ~overage under the existing Kaiser Health
Plan S Contract, including the Drug Plan III option.
b. Employee and dependent coverage under the existing City of Palo Alto
Employees' Self-Insured Health Plan with major medical maximum of
$250,000 and pelvic examination benefit.
The Cfty shall, upon submittal of evidence of paymentt reimburse up
to $135 per quarter of medical plan premiums on behalf of management
employees who retire from the City under service or disability
retirements. The retiree may select any medical plan. lhe plan may
cover eligible dependents as defined under the City Employees• Health
Plan. No reiri>ursement will be made for plans providing benefits
other than medical and health benefits.
2. Dental Plan
The C1ty shall pay all covered plan charges on behalf of employees and
dependents of employees who are eligible for coverage and enrolled under
the existing City Dental Plan.
3. Basic Life Insurance
The City shall continue the basic life insurance plan as currently in
effect for the term of this c0111Jensation plan.
4. Long Teno Disability Insurance
The City shall continue the long term disability insurance plan currently
in effect for the term of this c~nsation plan. Employee coverage is
subject to a voluntary payroll deduction of the insurance premium appli-
cable to the first $2,000 of monthly salary for Plan 8 or the first $1,800
of monthly salary for Plen A; the City will pay premiUIRS in excess thereof.
For those employees without eligible dependents covered under the health
plan provisions, the City·lifill pay up to $8 per month toward long term
disability insurance premiums. For those employees without eligible
dependents covered under the dental plan provisions, the City will pay
up to $12 per !ROflth toward long term disability insurance pret1iums.
G. PoHce Department -Personnel Development Progru
Pursuant to administrative rules governing eligibility and qualification, the
following may be granted to sworn police personnel:
P.O.S.T. Intermediate Certificate:
P.O.S.T. Advanced Certificate:
51 above base salary
~% abovP. base salary
COMPENSATION PLAH -MANAGEMENT
Page Six
H. Management Benefit Program
All City staff m&nagement employees are elig1~le for Sections 1, 2, 3 and 4
of the Management Benefit P~ogram. City Council Members are eligible for
Section 3a only. Specified amounts under thfs program will be applied on a
pro rata basf$ for employees who are in a management pay status for less than
the full fiscal year.
1. ~rofessional Development -Re1mbursement
Re1mburseMent for authorized self-improvement activities will be granted
up to a max111UD of $500 per fiscal year for each management employee and
shall include the following benefit items as defined in Policy and Pro-
tedures No. 2-7:
a. Civic and professional association memberships
b. Conference participation and travel expenses
c. Educational progrmrs
d. Professional and trade journal subscriptions
e. Doctor-prescribed physical fitness program as inaic&ted under 3b
of this section
2. Professional DeveloP!!!ft -Sabbatical leave
Authorized paid leaves of absence for up to one year will be granted in acco-rdance with the following requirements:
A. Stbbatical leave program shall be beneficial to the employee's job
assigment.
b. An enployee's job assignment actfvity shall be adequately covered
during his absence with emptaasis on the development of subordinates.
c. Tne leave of absence period will be adequately coordinated with
departmental priorities and workload.
d. Leave of absence sabbaticals should be based on internship exchanges,
and/or loaned e'xecutive arrangements; scholastic and/or authorship
programs; or educational travel-study plans.
Leave of absence schedules will be apportioned among all levels cf manage-
ment and will be based on an evaluation of each employee's performance
record. Each paid sabbatical leave w111 be limited to a maxi_. of one
year and not •re than two employees being on leave si11Ultaneously.
Sabbatical leaves must be cleared in advance and approved by Counc11-appo1nted officers and Council.
e
C<J4PENSATION PLAN -MANAGEMENT
Page Seven
3. Personal Health Program -Physical Fitness
a. All management employees will receive physical examinations in accord-
ance with Policy and Procedures No. 2-7.
b. In accordance with the reconmendations of the medical doctor an employee
may under· take a prescribed phys ica 1 fitness program. Emp 1 oyees par tic i -
patin9 in this acti~ity.will be reimbursed under the Personal Development
Program.
4. Excess Benefit Reimbursement
Reimbursement for approved excess benefit expenses wi 11 be granted up to a
maxilllJm of I 500 r fiscal ear each for the Cit Mana er Cit Attorne
·and Citf Cler ; an 1_000 per f sea year each for other management !tt.!P oyees
and shi 1 include the following benefit items:
a. Life and LTD insurance premiums for City-sponsored plans.
b. Excess medical/dental expenses for employee and dependents which are
not covered by ex1st1ng City-sponsored plans.
c. Excess self-improvement items which are otherwise approved but exceed
the reinbursement limit under H.1. above.
If the full excess benefit reimburseme1~t is not used during the fiscal year
the difference between the amount used and the ma.xihlm (or pro rate 111aximl.JJn}
may be applied at the employee's option to deferred compensation under the
City Plan.
I. ~tcmK>b11e Expense Allowance
For those emplQyees whose duties require exclusive use of a City automobil~, the
City Manager {or 1n the case of J;;guncil-appointed officers. the CitX Council)
may authorize payment of $235 per mont~ in lieu thereof.
J. Parking in Civic Center Garage
IC.
The City shall provide employees parkfog privileges in the C1Yic Center Garage
at no cost to such employees. ·
Ex2!nse Allowance
_Per Pai Period Per Month {Approx.)
Mayor $69.~3 $150.00
Y1ce Mayor $46.15 $100.CQ
City Manager $69.23 $150.00
City Attorney .$46.15 $100.00
COMPENSATION PLAN -MANAGEMENT
Page Eight
L. Reimbursement for Relocation Expense
Policy Statement
The City of Palo Alto will provide a Basic Relocation Benefits Package for all
new management employees, In addition, upon the approval of the City Manager
or designated subordinate, Relocation Benefits will be available to non-
management positions. Provisions of 11()ptional Beneffts 11 or portfons thereof,
are intended only for rare instances and require the approval of the City Manager.
Procedure
Qua 11 f1 cations
In order to qualify for relocation benefits, the followin9 conditions must be
met:
l. The eq>loyee DJSt qualify for Moving Expense Deductions as contained in
the Federal Tax Regulations for the year f n which the move occurred.
2. Actual relocation, or contracts designed to establish a fixed domicile,
shall occur within six months of the initial date of ~loyment.
3. Existing employees pl*OB)ted to a covered position are not eligible.
4. Recordkeepfng requireamts will parallel those required for expense
reimbursemettt for travel, conferences and Meetin~s.
5. Provisions of optional benefits is contingent upon acceptance of a one-year
employment contract with the City. Failure to complete the full one-year
term will require repayment of those benefits on a pro-rata basis computed
on the actual time of Cf ty service.
Basic Package
1. ~lo.vment Trip -Actual and reasonable expenses will be provided or
rellibul"ied by the City for travel costs, meals and lodging for candidates
out of the local area. The local area 1s defined as all cities or tmms
located within a 100 mile radius of the City of Palo Alto. Travel costs
reimbursement is restricted to the lesser of consnon carrier rates or the
established City rate for automobile use. Costs for meals are restricted
to the established City per diem rates.
COMPENSATION PLAN -MANAGEMENT
Page Nine
2. En Route Expenses -Direct conman carrier transportation will be provided
in full for all family ~.embers. Automobile expenses are limited to two
vehicles at the established City rate with a minimum of 350 miles per day
to be traveled. Per diem is allowed at established City rates for employee
and spouse/mate and at 50% of the employee rate for dependents. Travel days
allowed are limited to the actual mileage divided by 350 miles per day.
Lodging is reimbursed in full on an actual and reasonable basis for all
family members.
3. Household Goads Shipment -Full costs will be paid for t~e shipment of
all personal items nonnal ly considered 11Househol d Goods. 11 Items ex.eluded
include recreational vehicles, firewood, building materials, sand, boats,
airplanes, and perishable items such as food or plants. Shipment of up to
two automobiles is pennitted. Storage of household goods will be provided
for 30 days.
4. Profes~ional Relocation Counsellin~ -An agency designated by the City wiTi provide help to the employee ln their relocation efforts. Information
to be provided includes items such as financing, home and rental locations,
transportation, weather patterns, schools. recreation, etc.
Optional Benefits
1. Dis"dsal and Purchase Costs -The City will cover costs that arise in
tF.e isposal and/or purchase of residences:
a) Costs to break an existing lease will be covered up to a total payment
of three times the current monthly rental rate.
b) Real estate conmissions up to 6% of the sales price.
c} Non-recurring closing costs on both purchase and sale {11Points 11 on
purchase of residence are specifically excluded).
2. Bri~e Loan -The City will arrange for a 90 day interest free loan up to % of an employee's equity in their current residence as detennined by
three independent appraisals. The assumed Fair Market Value will be the
average of the two highest appraisals, providing those appraisals are
within 5% of each other.
3. Third Party Purchase -The City will arrange with a third party to provide
an inmediate offer of purchase for an employee's current residence. (This
item would include many of the benefits cited in options above.)
4. Mortgaye Interest Differential Patwents -The City will provide Interest
Rate D fferential Payments under ~e guidelines of the Federal Unifonn
Real Property Acquisition and Relocation Policies Act up to a maximum of
$300/month for 36 months.
COMPENS.~TION PLAN -MANAGEMENT
Page Ten
5. Miscellaneous Expense -The City will pay Miscellanaous expenses asso-
ciated with t. J relocation. The amount shall not exceed $1,000.
6. T~rary L1vin¥ Expense -Up to thirty (30) days temporary living expenses
w1 be avaflab e under the following guidelines:
Lodging -1001 of !ctual and reasonable costs for all family members~
Per Diem -1001 of the established City rates for empioyee and spous&/mate
and 50% of the established City rate for dependents for the
first 15 days; SOS of the established City rate for employee
and spouse/mate and 25% of the established City rate for
dependents over the last 15 days.
Car· Rental -Up to 30 days for a sfngle vehicle 1s available until such
time as the e111>loyee 1 s personal vehicle becomes avail~ble.
7. Househunting Expense -The City will provide expenses or reimbursement
for one hiiusehunttng trip for both employee and spouse/mate. The trip
shall be Hndted to a maxilllJlll of seven days. Travel expenses are limited
to the lesser.of comnon carrier rates or the ~stablished City rate for
automobile use.· Lodging. is provided on an actual and reasonable basis.
Per ·Diem exJ)enses are ·allowed according to the established City rates.
Expenses for children are not covered.
Regulat1cns and Guidelines
1. , The City Manager, o.r designated subordinate.-will institute and revise
internal procedures to assure the eff1ci'ent delivery of services to the
new employ~ and minimize·costs to the City. This will include the deter-
mfniation of whether direct City payments. advance of funds or employee
reimbursement is most appropriate for.a given program element or employee.
. .
2. The City Manager, or· designated subordinate. will detemine the approp.:.
riaten&ss of inclusion of spec1fic items in this program that arise as a
result of "grey areas.n
3 • .' Expenses incurred by t.he employee·during relocation which are not covered
a~: . .
a) Payments to friends for assistance.
b) Au.tomobil e repa 1 rs.
c) Costs incurred during the relocation but not directly related to
-personal transportation ~r forwarding of household belongings, i.e.
uninsured losses during transit, entertairilllent expensest etc.
COMPENSATION PLAN -MANAGEMENT
Page E'11=!ven
4. Budgeting of all Relocation Expenses will occur in the Personnel and
Utilities Departments.
5. Upon approval of the City Manager, provision of benefits under the
section Househunting Expenses and Professional Relocation Counsellin
may be provided before an employee onna y accepts an o er o emp oy-
ment with the City.
M. Retirement
Effective with the pay period including July 1, 1983, the City shall "pick-up"
{pay) seven percent (71) of the e""1oyee•s mandatory Public Employees• Retire-
ment System (PERS) contribution. Such pick-up contributions shall be paid
by the City in lfeu of employee contributions notwithstanding the fact that
such pick-up of contributions may be designated as employee contributions
for purposes of PERS. This provision shall apply to the City Manager_,,
Attorney, Clerk and non-Ccuncil-appointed r·egular management employees.
TABLE I
Page Twelve
CITY OF PALO ALTO CCM>ENSATION PLAN
Council-Appointed and Elected Officers
APPROX. EFFECTIVE DATE
APPROX. MONTHLY PAV PERIOD
CLASS CODE TITLE AMUAL SALARY BI-WE£JCLY HOURLY INQ.UDING
001 Cfty Councilperson 4,800 . 400 184.62 January 1 • 1982
002 City Manager 72,500 6,042 2,788.46 34.86 June 25, 1983
003 City·Attorn~ 57,500 4,792 2.211.54 27.65 June 25, 1983
004 City Contro 11 er 46,596 3883 1792.00 22.40 July 1, 1982
005 City ClerJc 38,652 3221 1486.40 18.58 July 1, 1982
.. ·•
TABLE II
CJTV OF PaLO ALTO Co"PE~SATJOh Pl Alil
"AfllAG[~(NT P£WSONNEl
[f'f£CTIVf Jurie 2S, 1983
cus:s G••I£ C0"4TROL A;>PROJr APPROX APPROX
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llUI ASST CITY Hf't Ji? 1 .. a.55 -.~ .. M>1 \.w1.ao z1.art
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EfFECfllo'E June 2S, lSf.13
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