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Home My WebLink AboutRESO 8658RESOLUTION NO. 8658 RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO ADOPTING A COMPENSATION PLAN FOR CLASSIFIED PERSONNEL (SEIU) AND RESCINDING RESOLUTION NOS. 8452, 8540, 8595, 8608, 8623 The Council of the City of Palo Alto does RESOLVE as follows: SECTION 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 Exhibit "A" attached hereto and incorporated herein by reference, is hereby adopted for Classified Personnel (SEIU) effective May 1, 2006 through June 30, 2009. SECTION 2. The Compensation Plan adopted herein shall be administered by the City Manager in accordance with the Merit System Rules and Regulations. SECTION 3. The Compensation plan shall continue in effect until amended or revoked by the ,Council. SECTION 4. The Director of Administrative Services is hereby authorized to implement the Compensation Plan adopted herein in his preparation of forthcoming payrolls. The Director of Administrative Services is further authorized to make changes in the titles of employee classifications identified in the Table of Authorized Personnel contained in the 2006-09 budget if such tables have been changed in the Compensation Plan. SECTION 5. Resolution Nos. 8452, 8540, 8595, 8608, 8623 are hereby rescinded. II II II II II II 061003 cjs 8260332 1 SECTION 6. The Council finds that this is not a project under the California Environmental Quality Act, and therefore, no environmental impact assessment is necessary. INTRODUCED AND PASSED: October 10, 2006 AYES: BARTON, CORDELL, DREKMEIER, KLEIN, MORTON NOES: KISHIMOTO, MOSSAR ABSENT: BEECHAM, KLEINBERG ABSTENTIONS: APPROVED AS TO FORM: 061003 cjs 8260332 2 APPROVED: ~$~ City Manager Director of Administrative Services Director of Human Resources 'J CITY OF pALO ALTO COMPENSATION PLAN . . .SEru . . . CLASSIFIED EMPLOYEES· EFFECTNE: Pay period includingMay 1, 20044 Through Atlfil 30, 209~ June 30, 2009 1 " •••• h ..... ; •• : ••••••• n.:; ....... : ........ :.:: ..... ,~ ••. : .•..• -........•.....•.. ~ ............ m .. _ ..... ····-1 ::~tted: FDnt:.llmes New . COMPENSATION PLAN FOR TIlE CITY OF PALO ALTO Classified Personnel SECTIONL SALARY ~A,-Salary Range Table Fomtatted: Bullets and Numbering ............. formatted: Indent: left:' 0.25"' The base salary for the sabirv tables of the following classifications' will teceiye equity adjustments as follows effective 913W06, .' . ,.. • ". I Buyer 10.3% Associate Buvei 10.3% Public Safety Djspatcb'er 5,0% ~Lead Puhlw Sar~ J;2i§palcbm: 2, 7~ ................................................................................. nn ............ /·:··( FOrinlltted: Strikethrough' Desktop ThchnjciatJ· .' 2.7%. . GmPbic Designer 2.7% EquipIDent Operator 2.3% Equipment Operator Lead 2.3% HeavYEQQimneirt Operato~ 2.3% ijeavy Equipment Operator Lead 2.3% Truck Driver' . 2.3% Street Sweeper OperatOr 2.3% .Street Sweeper OperatO{ Lead . . 2.a% Senior PlanPer 1.5% BuiJdingiPl8imipg TechniCian 1.5% . . tree Trimmerrune Clearer 1 :1 % Tr~~ TrimmerlLine Clearer Lead 1.]% Tl:eftTrimmeraJne tIen Assist. 1.1 % Iree MQintenance Assistant . . 1.1 % Tree Maintenance Person 1.1 % Park Ramlet 1.0%' Sr. Ranger . I~ Storekeeper . 0.6% 2 I' Storekeeper Lead 0.6% Assistant Storekeeper . 0.6% Fleet Selyices ·Coordinator. 0.6% Equipment ,Parts Techniciat1' . '0.6% LinepersOtl/Cable Splicer' 0.5% Lineperson/CabJe SpliCer Lead 0.5% · Linepel1ionlCable Splicer,... T . ·0.5% LinepeTsOlilClible Splicer .:... 'Ii 05% LineUersoti/Cable Splicer AnD . 0.5% Resmirce Phmner' . 0.3% Assistant ReSoUrcePhimier 0.3% Associate Resource Planner . 0.3% Utility Rate AnaMt 0.3% Engineering Tech I 0.2% Engineering Tech U 0.2% Engineering TechlII 0.2% Wdfill Technician. '0.2% . Community services Officer . 0.2% · . Court Ljaison Officer .. 0.2% Crime Analyst· 0.2% PropertY Eyidence Technician' 0.2% : . . . . ... -__ • __ • __ ••.••••••• _ •••.•• __ ..•••• __ . __ ._ •. __ ._ ...... __ •••.• _. __ . __ .••• __ • __ .• _,_ •••••• _ .• _ ..•••••••.•. _ •..•.•.... _ .....••..•••• _ ••.••••••.•.•••• '.0' , •.. __ •••. : Fonnattecl: Foot: TImes New Rom,!n . . , · '1, The sement futisher and seiBeRt finisJ:iet' leatJ elassifieati6l1s ,;iill reeeiYe a 7.4% . A:. ••• ___ ....... __ • ____ • __ ••• _._ •••••••••••••• __ ...... __ ,. __ •• _n_ .. __ · __ . __ . __ . __ . __ ~_. _____ ._. __ ._ .. _._ ...... h_ .... __ u_ ... ___ .... .-________ ......... _._ ... _ ........ ___ ._._.' .. '_ .. effeetiYe 3 1 94. .' ". ..' . .'. .' . . .... .. . Fonna.ttIId:lndent: Left: O.25~· Fonnattlld: Font: (Default) TImes' New·Roman, StrlkethrO!lgh .... m .. • .. • .. j:·:~1£;~}~~m~j~~~:~J.~~I~~~i~~~:;l.i~ir·r:e.~~~:j~··~:~~ii~:~·~·f.~-ij~:~~i~;;.~·· .. :t'I·Q4::-:·~~::.·.·· .. . . FOnnattlld: Font: (Default) ilmes .. New·Roman A ••••• --••• :.;. __ .... nt~ ..... _ ••••••.•• ; .••• _ ••••.•.••.••.••. _ •.• _. __ . __ ..• _____ .......... ~ __ ..... : .• -.••.•..•• ---........... -................................................... : ....... u .................. ... 3. ~.~.p..~~~~.~~.~ .. !~.~~.~.~~!_~:?!..:?!.!R!~~.~b~ .. ~:P..Q~J.~!ll!!~!~~~ .. ~,,~i!!_~~.~~.~~!.~~~!~.~ ...... "m ...•• ; •••. dlat &Febelo\\' the labor market median effeetive January 1, 2993. " ..... ". Fo....,.ttIId~ Font: (Default) TImes '. New Roman, Sb:iketHroilgh . . FOnnattecl: FDnt: .(Default) Times New Roman· ~e GoBtrel MainteRaBee I ~ !ffeffie Genttel Mainteftooee II .~ '. FOnnalted:Font: (Default) TImes New Roman, Strikethrough .!ffeffie Gentfel Meintenooee bead ~ . ,. .. .. " ..... m . Street Maimenanee Assistant ~ . Gomm\'lnieatiofls :J:eelmieian '-W% 8eRier Plar.Jiet' ~ 4% " ... • Y . . .l . 4% YT.:'· • A <TJO !M% 3 ................................................ ----...... , ....................................... _ ................... -............................................................... -........................... .. Fonnatted: Font: (Default) Times New' Roman 4. :The _"l.~~H!~.i~E!~.~~ .. ~E!~~J:i:l~i~~ .1E!!l.~. ~Jas~m~~oll.s.;,vmf:tleei¥.~·I!I:l-~E1E1.iti~nal.. ....... __ adjHstmeat ofli.9% effeetive JanHary 1, 2QQS~ ............... m ................................. m ............................ _". • FOrmatted: Font: (Default) Times _ New Roman, Strikethrough "" ..... --..................... : .... -:-.. --.......... :. .......................... ; ............ -............................. _ ...................... ~ ....... : .... : ... -: .......... :. ....... --... , ....... -...... ~ ................ . B. Establishment of Salary "';-' . . . . . . . . . The City Manager is authorized to. make appointments to. or advancements with the prescribed ranges upon evaluation of employee qualification and -performance. .. . . -_ Merit advancements from the first salary step to the second sal~lIY step shall be granted at six- month intervals_and between the second and subsequent steps:at on~year intervals iftbe affected employee has demonstrated continued improvement and efficient and effective .. service. For the purpose of determining step time 'requirements, tlmewill coimnence on the -- first day ~of the month coinciding with or following entrance onto a salary stoep. Step increases shall be effective on the -first daieof the payroll period in which the time and peifonnance,requirements have been met. In the event that a downward adjustment of a salary range indicates a reduction in the -established salary of an -individual employee, the City Mat')ager may if circumstances · Formatted: Font: (Default) Times New Roman Fcirm'att8d: Font: Times New ROl!fan - Fonnatt8d: Font: (Default) Times New:Roman _ warrant, contiime the salaryfor such employee in an amollilt in excess of the revised r!lnge i ~~::.~um for'a reasonable period of time. Such interim salary ranges shall be defined as_ "Y // i Fonnatted: Font: Times New Roman .' .' ':-: •• ,: •. :-•.• ~ .. -.• -........ -............ ; .. ~.-: •••• ~ ••• ~ ..... -.• ~ .... :.:-................ -•• :.~ ...... --.: ........ --..... -... ::.-.~-.,.-.: ..... ~ ...... ~--••.•• ~ ••• ~ .... ;~ ••• -•. -.... : •• -.-.... --•. "./ ,f:' /' . -,§.~~Q~. n· ..... m ............ m~ ... _ ... mmm .. :.: ....... :.:.m ........ ~ .. ~: ....... , .. ~.: .... m .... _ ...... _____ ... ~ ____ .. __ . ____ : ____ . .-.... m' __ ... _., ... ___ ...... :_.-')./ .. A·:--sa'i~·'in·c~eases·:wiif·bi;·as·fO·iio;s:··--.. · .. ·--.. ··--·, .............. --............................. : ................ --.... --.... , ................ :., . .: j(.;~" 1.· P...l.~% base ~~!.I:I!Y.~~.~~J1!:~.y.~~~~.Hh:~ .. ~.~~~~.~ increase to thesalarv tables for aIL):""·'- classifications effective 1/6/07. . . . ....... . .-FOnnatted: Font: (Default) Times New Roman · Foi'imitted: Font: (Default) Times · . New Roman, Strikethrough · _ Fonn!ltted: Font: (Default) Tlmes_ New Roman- · Fonnatted: Font: (Defauit) Times --New-Roman Fonnlltted: Font: (Default) TimeS New Roman; Strikethrough· FoI'IIIIitted: Font: (Default) Times 2. ~@.~h~ .. Y.!.~.~~.p.~y..I'.~!~~J~~!~~J~g_~.~'n@.~~.~L~.~.~~.J.~~:~~.~.~~-.f!~~J~~~ ....... __ .. : ... --. 'It'iIl he applied to all elassifieatiensin the fePfesentatiElB Wlit:.~ .... : ........ : .................... .. 3.~% base salary increase to the Sruarv·tableSfor alh:lassifications effective Yll07; ......... ---------.. New Roman Formatted: Font: (Default) Times New-Roman, Strikethrough . Fonnatted: Font: (Default) Tlme~ New Ronian 3. p.~~l~~~)?t!~:~~P..~y1!~.~~J~~!~~!~g.l~~Jl .. ~~~.~L~J~.~..i.~~~.~~::fu!~.~!!@.~.~ ....... / . will he applied to all elassifieatiens in the rePFeseated 1H1it~ ___ .... ~mm .. n .... ' ........ ~~~ ............... :: ..... _., ... , .. . 3~O% base salarvincrease to the salarv tables.for all classifications effective Yl108. Fonnatted: Font: (Default) Times New Roman, Strikethrough -Formatted: Font: (Default)-Tlmes New Roman . 4 . . .. , .. , ........ . ..~ .. : ...... __ .... __ ....... __ . __ . __ . _____ . _____ .. _. __ .... __ .... ___ ........ ____ ... __ . __ . __ . __ . ___ ._ ... ___ . __ . __ . __ .. _ ..•. ________ . __ ............ _._._._ .. ___ . __ . __ . __ ._.u.n ..... __ . __ ... n._ ... __ ., ... . SPECIAL COMPENSATION·. . . . ...... . _w .. ________ 0 •• _ •• _ _'_,_n_ .. _._ .. _. _ .hU •• __ ._. __ ••• : •••••• ____ n_ ..... u.:n ............ nu._ ..•. __ n •. _____ • __ .. n._._ ........ u __ ._un __ •. u .•• n_ ........ h ............. '..... -', Personnel cOvered by this compensation plan, in addition to the salary set forth in Section I above; mayreceive special compensation as follow's. EligibilitY shall be incOnfo~ance with the Merit. Rules and Regulations and Administrative Directives issued by the City'Manager for the purposes of . clarifiCation.and interpretation. . . . . . .... .' '. " A. Overtime. Working Out of Classification. and In-Ue~HolidayPay Compensation for overtime work, working out of classification and scheduled work on paid Formatteci: Font: (Default) Times New Roman, Not Strl~through . . ·Fcirmlltted: Indent: Lert: OS Fcirmatteil: Font: (Default) Times . New Rom~n . Formatted: Font: Times New . Roman' h~lidays shal~be' paid as provjded .in the Mem~~um ?fAgfeem,ent~£2~f.Q~~~~: ............ [ formatted: Font: Times New WIth the Merit Rules. and Regula~lons and Admmlstnttlve Prrect~:ves~. . . . . . . . . Roman . .. B. . Standby Pay. Call-Out Pay 1. Standhy Compensation ···Employees perfmming sumdby duty shall be compensated at the. daily rates established below: Monday through Frid3Y ·4:30 p.m. -8:00 a.m. Compensation $50.00 per day ~.~.h~ . .P.~~!m.. ............... <:::.:~· Pl1!~3.: ..... . ... .. -........ ".:~:~~-... - .•... Formatted: Font: Times New Roman, Strikethrough .: Formatted: Font: Times New Roman . Formatted:· Font: Times New . Roman,. Strikethrough ·Saturday, Sunday, Holidays· . Fcirm.atted: Font: Times New $73.00 per'day .............. : .. ~!.y~~~ .... ; ............ -.;; ....... . -". . ... ~ .. Roman Formatted: Font: Times New Ramah; Strikethrough . Formatted; Font: Times New 2. Minimum ·Call::Out Pay R!lman Employees not otherwise excluded from receiving overtime p~y wheth!!t.~~-~~ .. ~ ....... ·····f Formatted: Font: Times New outto perform work. shall be compensated for at least t\Vohours' pay from the tline of· Roman . the call~out for each occurrence at the· appropriate overtime rate~. The two-hour . minimum does not apply to employees called outto work whileeaming pay for being in a standby status unless called out to perform billable customer convenience work . in which case the two-hour minimum will apply. 5 c. . Nii,mt Shift ~remiUni . . . . ··I~ .. ~~!H~~.~!.1!.!~.1~~.~~~.~~~t~.~.:?r.!!~.p.~y..p..~~.~.J~~~~,~I~g.M.ll}'J~ .. 2.~,Q~" .......................... , .... ··· .. · • ~~~.~~.p.r~~I!!~. in' the .8J!lgu'nt of $] .44 .per hour. ~~~~Uu~~ .. P'~!9.JQ.~~~p.l~Y-~~.~ .. fQr..~ ..... , ... ~. work perfonnedbetween 6:00 p.m. and 8:00 a.m. A mfnimum'oftwo hours must be worked ..... . betVveeJ) 6:00 p.rn: and 8:00 a.m. to qualifY for the premium. Employees who regularly work "\ night shifts shall receive appropriate night shift premiUms, relating tonight shift· hours worked, in addition to base pay for hplidays, sick leave and vacation. Night shift premium does not annlv for overtime situations unless overtime is approved to replace an employee who would have other wise received a night sbiftwem1um.· D. Tool Alj'owance I. Mechanics in Equipment Maintenilnce; Park Maintenance Lead .. Golf COUrse Equipment' Mechanic. Motorized' Equipment Mechanic and Mobile SerVice ........ .. Technician shall be paid lIIl.linnual tool allowance of $610~.~~~~).~.Y':!~.:~~.Jl~._.. . ; ileried ine!uding May I, 2QQ3. . ...... .. :.. .. __ . __ . __ .......................... .:: ...... __ .:. ..... __ .......... __ . __ . __ ........ _-_ ............... : .. --.... __ .... --.--.--.-..... -... -.-... -.. -.. -.. -.--.. -.-~ .... -.. --.--.--.-..... -... -.. .; .. -.. -.. ~ ... ; ... ~-.-.... -.. E. 2. Alltoalallowances shall be paid bi-weekly. .... : ...•.•.. Shoe AilowanceLFoot Protection ... 1. Safety Shoes '. the Citv shall reiinburse emplovees 75% Of the cost of jobreJated safetv shoes upon·<·· .. verification of such purchase by the empJovee.· . \\ ' '. .... ... Formilltted: Feint:. Times New Romiln, Strikethrough . Formatted: Font: Times New Roman : Fo'rmatted: Font: Times NeW . Roman Forl1l8tted: Font: Times New Roman Formatted: Font: Times New R:oman, Strikethrough . Formiltted: Font: Times New Roman Formatted: Indent: Flrst·'ine: a" Formatted: Font:' Times New Roman Formatted: Numbered + level: 1 + Numbering Style: i, 2, 3, .... + Start at:'l .j. Alignment: i.eft. + Aligned a~: 0.5" + Tab'after: 1" + Indent at: 1" . . Formatted: Indent: Left: 0.5", First liner O' · . 2 .. Walking Shoes +"" The City will reimburse employees 75% offue cost ofjob-related walking shoes fa!'"'· .......... . any positions necessary or required as detennined by management includirig Meter····· .. Reader and Meter Reader~Lead. in an amount not to exceed $300.00 per year. A " walking shoe is a durable work shoeJboot (non-steel toed), is anklesuOPorting: oil. \ .. '. gas imd slip resistant: waterproof or water resistant: lightweight and durable: and also provides hard surface cushioning. · Formatted: Indent: i.eft: 1", first line: O· Formatted: Numbered + level: 1 + Num!lerlng Style: 1, 2, 3, ... + start at: 1 + Alignment: left + Aligned at: 0.5" + Tab after: 1" + Indent at: 1" Formatted: Indent: left: i", first line:' 0" ... .......... ( Formatted: Indent: first line: a" 3. . Rainy Weather Foot PrOtectiOn . Jh't City .wm provIde rainY weather foot protection and· one summer hat forthe'>: .... ·· Classification ofParkiiig Enforcement officer,' .... ....... . A._ •• _ •••••••••• ~~_ ••••• _ ........... __ ._ ... _. __ •.• ___ •• ::_~ ••• _ ••. _ •• _ •••• _~ .... __ ._~. __ :_ ..... _ •••• ;._. __ • __ ! ••• ~~._~:._.~ ... ~ ••••• ~.~ ........ _ •• _. __ .. _.:~. __ ._MO ....... _._ .. :_ .. _ .............. ______ ....... ~~:-..(._ ..... . F. Certifications . . . . '\ . Formatted: font: (DefaultlTlmes New Roman Formatted: Indent: left: 1" Formatted: font: Times New Roman . -'. · Formatted: Indent: First line:' 0' 6 ", The City will pay special registration and/or certificatiOn fees .as follows: .. .. -., ...... f -............ . FOrmatted: Font: (Default) TImes . New Roman . Formatteck Font: (Default) TImes New Roman' Formatted: Font: (Default) TImes New Roman' ..... , Formatted: Superscrlp~ f--;;....;........:....---...:....~---.:...~~'--'--'-~~~~~~.:-:....----:-...:...---.....-'--.:-:....-4 ..... ; .... -.::~ ....... ~,;.;;;;,;;;;;,;;.;.;;;;;:;,;:~~=~ Formatte.d: Font: (Default) TImes Ni!wRomari . 7 ~'. '.' ,'. .y. ,,'. (a) • Tbe City' will pay {gr the Departm~nt of M2tRr~i~i(§' (OMy> lica1§ing {!ies {or aIL:..-······r"Fo-rm-a-tted-f-F6-nt-,: (-De-fa-u-lt)-T1-m-es-----" emDIOveeSIequired to milintidn a Commercial Drivers Licerise inaCC9rdance with the California New Roman · Vehicle Code and aqp1icable iaws preScribed by the DenarttDent ofttjjnsportatiort, .. (I?) !be S;itx wil! LUll' f~r Utili!>: Inst!!HerEW!!irer p$lf§onlli(lwbR 9btaiil¥iel~ing gertification,~:, .. ; .. , .. :, Formattu: Font: (Default) Times .. . Welding Certific@lionis a requirement based upon assigrimentandmay nohmily to·aIJ Utility . New ~oman . . .. .. InstaIJer Repairer personnel, TbeCity agrees thatlill InStallerlRenairers will· bavetbe . . ... . opportUnity upon request fora Welding cCrtificatecoursewithiri a reasOnable amount Qftime,· . Pipeline Welding ASsignment .... u. ••• • •• _. ,.' Formatted: Font: (Default) times TheCjty will nrovidea 4% increase in ·iiase'compensatiou· tojiiiiiw ii1stajier~&n;airer," New ROl!1an . . Iristaller-Repairer Lead positions that ineet DoTcertificatiori reqUirements and are aSsigned· · theSe duties, Utility Installer-Repairer andUtiJjtylnst3ner~Repaiier Lead positions that fail to maintain current certifications wiJJ not reCeive the 4% ·increase; Positio'ns assigned these duties . and designated by. Managenlent to receive this premium will not exceed five (5) Utility InstalleilRepairer and lnsialleilRenairer Lead, . ..•. . ..... '. .... ... If the certification is feguired in ·the job desci'iption; certification must be maintained> In·-.. ··: ..... FOrmatted: Indent: Left: 0.45", aCcordance Withfueir job description Maintenance Mechanics that are assigned to water Gas First 11m!: 0" . . Was_ater mUst maintain all requIred certifications and shall receiVe 4% increase to their basepay.for pipeline welding, • ' . , •.. : .... : .... Formatted: Indent: Left: on, First (C> Building Inspector ... . . .... .. .. . . .. . . . . .. . ~1~ln_e:..-. _0"_. _. _______ --' Upon successful, completion of probationary regujrerri~ilts; . the City will pay Buildjng Inspectors a one (1) percent of base 'saiary One-time payment for a certification above wbat is · required; Employees mpy request One pilVment per year to amaxirimm ·Qf two payments in . career, Payments will not exceed a maximum ofonenercent per "ear or tWo payments in a career. The BitildinglnsPecior Jgb Description speCifies cUrrent iequrrellents and the Union and gitywi!l·agree on a list QfaQnrODriaie certifi¢atiQbs eligible for the pfemium, Premiums wm not be paid ifcertificatjon is not maintained, ' . e VI r 'fi tio Employees classified hi the following positions; Water QuaJity Control Plant Operators] and II, Senior Operator Water OUality COImor Water System Operators land II Senior Water Systems Operator. Inspector. Field Services assignooto Utilities andlnstaller RepairerJobSeries .. may be eligiple torece)ye a I % base pay premium for certificatiorisrequired by the Department · of·Health and/Or the State Water Resources Control.Board, Einployees within these· job· . classifications that have successfuUv completed probationary requirements may request an . .. ·8·· . .. '. . annual payment of one (ll petcentforoneO) certification that is above those listed in their job . . description. Anemruoyeewho -Cnialifles for this payment shall be miid-l % ofille employee's .. annual base salary Onc-eperYear. The employee shall be responslblefor providing the City Wjth written-documentationthal the-employee-has obiained and ismaint8iriing the qualifying - certific!!tioDon an anriual-basis.PremiumS will not be paid if cartificationis nOt -maintained ... -Eligible emplOyees sh6uldyerify certification will qualify for the preniiumbefore attepmting certification. -The UnigP -and the City wil1update the job descriptiOns to reflect newlyreqUjied- -Certificatidnswith no further adhistIDents lobase-salarY.Paynlents will not exceed a maximum 'ofoneperceitt pervear.and will take effect intbepay period folloWing the verifiCation of certifiCatiOn. All costs for obiainingcertifiCiitions ab()\le what the job descnption re<iuiresWifl be- the responsibjJ itv of the eniployee and may be paid foT by using the Cit(s tuition reimbursement program (eUn acCOnlancewith-Cal~OSHA regulatio~s any employee who operatesa-forklitlmu~t have FOrkHft OPerator CertificatiOn. Training tobpproyided by the COy. ; .llkL._"~I~SU~_~__~____ __ .________~_:________"_______.,._ ..... -..• -.=-~=:-Now -1. -Health -Plan _ . _ The City shall pay .~_~~!!l:1~p!l~~~!~ up to the mQOlhly medical mwiuin fgr ~_.; __ ... -----Formatted: Font: TImes New --2nd moSt expensive plan (among the existing arr8y-ofplimS) on behalf of employees Roman, Strlkethrougl) -anddependentswBeiliat are eligible for the erilployee-selectedPublic EmployeeS' - Medical and Hospital Care Act (pE:tviHCA) optional plan. _ - _ a. Active EmployeeJjolDestic Partners . Effective July 1, 1996, active employee:. domestic partners who meetthe - requirements of the City QfPalo Alto Declaration o£DomesticPartnership, and are-registered with the Hunian ResQurces Department, will be eligible for reimbursement of the actual inonthly premium cost of im individual health plan, not to exceed the maximum monthly premiwn cost of lridividual coverage under the PEMHCA health plans: Evidence of premiurri payment- will be required with request for reimbursement. -- b. Retiree Medical Provisions Monthly City-paid premium contributions for a-retiree~selected PEMHCA optional plan will be made as provided under l~~_~~'!~.~.~J~~~~~_M~~!~~L;-----~-"· Fc!ni1atted: Font: TImes New . ~d Hespitel C&Fe >".tet. Health plan through the CalPERS Health Berieflts Roman, Strikethrough - 9 . PrograinwiU be made as prOyided under tbe public Employees' Medical and Hospital Care Act Effective 111 /07. the City mOnthly employer contribUtjon for eachretjree shall be the amount rieceSsArv to pay for the cost 'ofhis Or her eniOliment;iri it health benefitS plan up to the monthly premium for the 21ld moSt expensive' plan (anjong. ·iheexisting array' of plarjs). . . .~~.g!~'5! .. ~@~~~t~~~!!i.~ti~.~r .. ell.~·.8F.~~i!~.~~Il.I.! .. ~.~)~9.~~.~f;$.~ ............. formatted: Font: limes New . si.ngle PartY premiuHi, anEl the G9RtflbUtj9n fer family Hiembers'NilIinerease . Roman, Strikl!through .• &11)' by S%.efiheeiffereaee hetween the.single.party premiuBl.aBa the· *';"9;9£ famil)' member ~iUm.untii sueR time astRs.ameUl$ are e~al. ... in If~ regular employee and/or the employee'S' dependent(s)are eligible for medkal insurancethroogh ~.~~~.MY other ~~P..~2Y.~!:~P.2.~~2.~~.~ .. Q! ........... : ....... ~·-··'· ~:::o=:~~. ~~~~~~~~t.) Times. association' sponsored group medjcalplan, theentployee may~ .., .'. ~============~ coverage under: this.~.~ .. I!!~~m~~!Y~.!!!~~!.~~..!~~!!!~£~ .. ~Qy'~!~g~.~Q!!gh ___ ..... .-.-~::o=: ~~~~~~O:u.a~~t) Times the other employer-sponsored or association plan and waives his/her right to the City of Palo Alto's medical JUlm.insurance coverage for same individ\!als. Employees electing altemativecoverage and waiving B9 City cove~age will receive cash payments equal to ~~p'p'~Q~.~~~~~Y..!l.~!fgU!l.~nh'"''''·''''' J'Onnatted:Font: (Default) Times "average monthly premiums" for their medical insurance coverage. New Roman, Strlkethr'ough "Averaged monihly premiums" are the average of the Kaiser HMO, Blue Shield HM()and PERS Choice PPO premiums of the employee's City medicaicoverage availablethiou~ the l.~~]~.~.~!~~.~.~.~.~.~L: .... m ...... '-"·"·· System (}>ERS). CllIP~Ba H~ltb l}¥lJefits·J!rograw. ._m ...... ~ ...•.... m.~ .. ___ .. _ ...... 'n .•• ;:.:::.:.: The rates for 2004-Qare as follows: ..... _ •••••• __ .......... __ • __ •• _ •• __ •••• __ • __ ••••••• __ ••• __ ·._ •• __ .···._·.·· __ • __ • __ • .. ••• •• _ ••• _. __ • __ • __ •• u __ ••••• _ •••• _ ••••••• __ • __ •••• __ •• -'-. "'" One Party: .$.l21.~:.QQ. __ .................................................... · ....... .-.. ___ ......... c ........................................... "'_"_" TwoParty:=--$410m.OO '. . . ... . Family: ~$ ~;~9.~:::::::::::::::::::::=::::::::~:::::::::::::~::::::::::~::::::::::~::::::::::;:::::::::::::::::=::::::::::::.:: ....... . . The rated for 2007 are as follows: One pam: $ 230.00 Two Party: $460.00. Faml1y;·· $595.00 2. Dental Plan FOl1I1atted: Font: (~ault}linies. New Roman, S~ikethrough Foimatted: NotStrlkethrough Fonnatted: Font: (Default) Times New Rom,ln, Strikethrough formatted: Font: (Default) Times New ROiT]an,Doubte strlkethroug~ . ." '. ===' Fonnatted: Font: (Defautt) Times New Roman, Strikethrough . . Forma.: Font: (Qefault) Times New Ronian, Strikethrough • Fonnatteli: Font: (Default) Times New Ronian, Strikethrough The City sh~J cOntinue to nroyide a ~!iy..~!J.:P~.~~~.p.~~.~.~~ .. ~~~f..Qf..~f'.!~.~~t..... ....... :onnatteds tk: F~nt: Tlhmes New and aepenaents efempJeyees. Efi'eetl'le July 1, 199(;, eepenaent.swlll lnsluEle aemestls oman, tr et roug pMtfters as aefinea under Seeti9n 1.8., v-me &Fe eligible fur 69';erage lInEler the CRy's self . 1.0 .; ~ self-funded dental plan for the' benefit of City emplovees and their eligible dependentS. .' . . (a) The Citv will pay 100% of the requiredpreiniums for the prom except that benefits for regUlar part-time employees will be prorated as follows: (b)Employ¥es hired after January 1. 2005, wbo will wOrk Jess than full tim» will receive . prorated premIum OOsts fof dental benefits in' accordance with his/her percentage ofa full- '. tiine work scbedule;ParMime. employees currenily receiving fun benefits will not be impacted. ." .. ' . ." . . ££l~ The maximum benefits per calendar y~ shallbe $2,000 effective )anuary I, 1990 . . . Effectiveluly 1,2001, dental implalits in conjunction with one Or more inissing natUral : . teeth, arid removal o(implantS will be covered as a Major Dental Service at 50% usual, Custom.ary and· reasonable (UCR.) . ·~~.9.ityc~b.!f:I.I:~suRle. ~ ~~.~jll~ ra.t~.H.l~It!I~. ~R,~!~iRg,_~.I~~ .. ~.~.~.~~~~ ........ .. . 6entalli\e'.'eFage_: f.4) Meetjye l/IlQ7·the· QitY will add ggmposlte <tooth cQ!ored)f'j!!ings in dent!ll plan ........ > posteriqt t1:~ .......... :; ... ::.,_~ .............. , ...... __ ..... ~ ..... ~ ... :_ ............... _ .. _ .. _,~ .. : ... _ ....... :., ..... _ ..... _ .... : ... , ....... ~:.: ............ , ..... ~ .......... ' eel Effective I1l107 the City will pay up 10$2000.00 for Orthodontia coverage .......................... . Fonnalted: Font: Times 'New Roman, 'Strikethrough' . Fonnatted: Not Strlkethro\lgh Formatted: Not Strikethrough Fonnataid: Font: TlrriesNew .Roman, Strikethrough 3. Basic Life Insurance 4. The' c::ity shall contmue th;e basic and supplemental life insurance plan as currently in effect for the term of this compensation plan. '. Long Term Disability Insurance 10e City shall continue the long term disability insurance plan currently in effect for the term of this compensatIon ·plai1,,?{!~.~J!!~~~~.~J~J~.~.~~~.~.!~.~J.~~~.t~~~J~!~ ............ : ::~~~e~~~~:hmes New Ate $4,OgO, et'feeti'ie July 1, 1991. . .. For Plari fAA, the benefit is 66 and 2/3% ofpre=diSllbility earnings to the m'aximum benefit leyel of $4000.00 per month. ~J:)J~y~.~Emt?I2yee;~~Y.~r.~.8~J~.~!!~J~~t~~:.~.y'Ql~.~~.~ .. ~ ..... ···· :onna~~~nt: Tlhmes New payroll deduction of the insurance premium applicable to the flTst $6000 of monthly····.... oman,. roug salary, less a creditof$1 1.17 per month to be paid by the City. . ":::~tted: Font: Times New For Plan B,. the Pl~.~i.~~~.!?~~~~.U~:~Li~..i§ 6Q%gf pr~gi§ilbilill ~ing§ HP 19 1bCi .• ,: ........ · :O~~~ F~nt: TlhmesNew maxin'mm benefit level of$1800. ofmpnth. Employee coverage is subject to a voluntary ......... oman, to e roug payroll deduction 6fth~ ins?rance pre~ium,~pplicable to the first $2000 of monthly ·.:~~:~~~~:hmesNew salary for Plan B; the City wlll'pay premIUms m excess thereof. The City will pay up to $17.50 per month toward long term dIsability insur~~ premiums' 11 5. . . . . . .' . ". for those· employees without· eligible dependents covered under the health insurance· provisions. Vision Care. 1?ff~.~~y'~.,~~g1~.!~.!.,~~y.J, . .1.9..~~.!~.~.9!~.'!!!H.Q~ ... !_i~~2.~ .. ~~~.~.~:!.~~~.~~.~!.~~.:: ... ······ end..~~~~~~ The Cittshallcontirjue to provide a self-fund@d Vision Care program for,";:> ... the benefit o{Cityemployees and theitdependents .. The titS' shaJlpay-IQ()% of the.~. \\ . required preri'iiums fOr the program. The benefits of the ViSion care. Drop· shall ~\"' .corttinue to·be eqUivalent· to $20 Deductible Plail A under the Vjsion Service Plan. \\ P~.:~~~J~ .. ~~!:!.!iI~~.!~:~g~J?'~.~~.~~'.~.P'!~/>. .. ~!!~~.YJ~!~~.~.~!~.~.~!~.Y!.~.!n.~~JY.:, \\\ '. pr-emi\lms paid by the empleyeF. Effeet .... ·e July I, 1996, depeodeBts will melude demestie \.. \ \ parmers as dtffiaed .1:IBEler8eetieB l.a:. ..... : .. ~.: ....... ~~ .... :._ •. ,_ .... _ ..... _:.m~~: __ .. _.:.~ .... _ ... ~..: .. :.~ . ..:..: ....... : .. _~ ....... -\\\ \. , \ F. Commute Incentives and Parking \ \. ... \ . Effective August I, 1994, represented employees who qualifY may voluntarily elect one of the following commute incentives: . ... . . .. Civic Center Parking •. Employees assigned to Civic Center and adjace~t work locations. · The City will provide a Civic Center Garage parking permit. New employees hired after' April 30, 1994 may initially receive a parking pemiitfor another downtown lot, subject to tJie availabilitY of space at the Civic Center Garage. . . Public TranSit. The City will provide monthly Comniuter Checks worth the value of: $40 for employees traveling two or more zones on Caltrain; . $40 for employeeS using the Dumbarton Express, BART, the ACE train or a commuter · highway vehicle; . $35 for einployees traveling within one zones on Caltrain; $,35 for einployees usirig VTA, and other bus¢s . .. These checks are pre-taxed and may be used toward thepurch~e of a transit pass. CarpooL . The . City will provide $30· per month (taxable income) to each elig'ible employee in a carpool with two or mor~ licensed drivers.· . VanpoQI Program. The CIty will provide Commuter Checks worth the value up to $60 · to each employee voluntarily participatfug 'in the Varipool Program. These vouchers are pr~taxed and may be used towardpaymerit of the monthly cost. Employees must fulfill the basic requirement of the EmployeeCommiJte Alternatives Program to qualifY. . .. Bicycle. The City will provide $20 per month (taxable inCome) to eligible employees who ride a biCycle.to work. . 12 \ ... '. " Formatted: Font: Times New Roman, Sbikethrough formatted: Font: Times New Roman f"ormatt8d: Font:" Times New Roman, Strikethrough . Formatted: Font: Times New Roman .. 'Fonnatted: Font: Times New Roman, Strikethrough . FOrmatted: Font: Times New Roman Fonnatted: Font:Tlmes·New Roma'ni Strikethrough. Foimalted: Font: Times New ·Roman Wal~ The CitY will prpvide walker $20. per month (tax'able income) to eligible· .. employ~s who walk to work. . . . G. DependentCare Assistance 1. Dependent Care Assistance Program. TheCitj ... ~!:m"§hWl coritinu¥!g P.r.~Y.t<!~.~'p"~'p'~~q~~~ ....... :···· C~e.Assistance progrmnforemployees ihat COtnPlies with·E!E!~~~~g.~.~"~.~~Y!Ii!~~.~f..~~." .. · .. ... Feaeral Beanemie Reee'Jery1'aK Aet ef 1981~ Code Sections 125 JlRd129.ofthe Internal .. ".~ Re~eriUe Code. . " .... "'-"< Formatted: Font: Times New Roman, Strikethrough . Fomiatted: Font: 'nmesNew Roman, Strikethrough . Formatted: Font:.Tlmes New. Roman, Strikethrough .. H. Retirement· I . 1. The City will continue the present' binefit~ under the Public Employees' Retirement . Syste11l2..:z%at~. Employees who tetireand were employed by theCityon.or before April 1 ~ '1977, and spOuses of deceased employees who were employed by the City on or before April 1 , 1977, shall continue reductions in utility rates. All retired employees and spouses of deceaSedemplbyees shall also have residential privileges at City Iibraries~ ..... ·······1 Formatted: Font: Times New .J' refuse disposal area, golf course arid swimming pools. . . . . .. :., .,-,. R.:.:o.:.:.:m=an.:.... _______ --.J. . . . .' ~Effective with pay period including May 1, 1984, the City w'iIlpaY the 7% employee's+········ Formatted: Bulleis and Numbering retirement contribution to the Public Employees'Retirement System (PERS) ... ~.~$P.!~ ... _ ....... " Formatted: Font: Times New . up' eelHfibuaens sft~l be paid bY the City in :lieu ef emp1eYee eefltrihutiens' Roman, Strikethrough HEm"litftStaBding the met that· suoo piek up. ef eefltrihutiens may he designated as empl&yee .eentrihlitioos· fetpurp8ses efPER8. Fer pHrp9ses efoegOtiatioo hereafter, the payment by the' Cityefthe efRpleyee's eeBtfib\lties sh~lhe deemed a 7% adjHshntmt in salary fer the year May 1, 1984 t:brei:lgh April 39, 1985~ Effective the pay period inClusive of 116107 the employee share ofthe PERS contribution will increase to 8% from 7% and the City will pay 7% and all employees will pay 1 % of the 8% employee " ~ ......... ".~: .............................. : ........... ,.: ..... , .... ~ .................................. ~ ................ :; ..................................... ~ ......... ~.~.... FormatteJl: Still<ethrough ........ ..... Formatted: Indent: "Left: 0,5" -._. -Effective the Day period exclusive of7/1107 all employees will pay an additional one. (1) 3. PerCent toward 2.7®55 for a total of2% of the PERS emPloyee-shate contribution .. The ···Citycontributionofthe rus emPJoyee-~hare will charigeto 6%.· . Notwithstanding Section 2 above, and pursuant to Government Code Section 20615.5, upon flUnga notice of retirement the 7% City-paid PERS employee contribution will be . converted to a salary adjustment of equal amount on a one-time irrevocable basis for the fimil twelve In.ooths bnmediately prior toa retirement. For this final twelve-rnonth period the employee shaH pay PERS employee coptributiori. ... .. ............ -... 13 Formatted: Indent: Left: 0.39", . Hanging: 0.3" . . " ~TJ:t.~.:9.i.~ .. Y!!n .. ~~~~: .. ~~ .. ~~~~.~ .. yd~.~ .. !~~ .. F.~~.~!~ ... ~~:P.~~~~~~ .. ~~t~!.~~.~~ .. ~Y.I!~~:;::;······ .. ~~:t@!@m 12 p.~:!.~.~~ ... ~f ... ~~~!!~~ .. @'H~.~1 ... ~~~ ... @. .. ~~t.J~U, ... ~~p'p..!~~.~! ... ~~ .. M.~~.!!1~.~.,· ... ~> ... . Farmula fer baeal JiAiseelJanealls Members, ta ~e etl'eeti'/e JlUl1Iary 1, 1999.. . . '\ .... , Fonnatted: Indent: Left: 0.39", Hanglrig: 0.3" Fonnatted: Bullets and NLimbering Fonnatted: Font: TImes New Rom'an, StrlketlJrough -. -Effective the pay period inclusive of 1/6/07. pursUant to Government Code Section "\.\ 20615;$, upori receiving an employee's notice ofretirement the City-paid PERs employee \> contribution that will be converted to a salary adjustment of equal amount on aone~time " '. FOnnatted: Strikethrough 4. irrevocable basjS for the final tWelve months iinmediateIV prior to retiretnent will be 7%. For this final tWelve-month period the employee shall pay ·the fu \J 8% PERS employee contributions. '. . . . Effective the pay period incluSive of 711107; pursuant to Goyeniment Code Section 20615.5 upon receiving an emploYee'S notice of retirement the City paid PERS emplQyee· conttibutionthatwill be converted to a saJaryadiustmentQfeqrial amount ona one-time irreVocab Ie basis for the final twelve months' immediately prior to retirement will be 6%. For this final tWelve monthpefjod the employee shaUpaythe full 8%PERS emplone contribUtion., '. '., . . . . . . . . Asto SPIU employeeshiredaft:er January i;2005. the PERS law vesting schedule set forth in Govemnient Code secti9n 22825.5 wi1l,apply~ Under that !l;lW; aoemployc;:eis' eligible for50% of the specified employer health premium contribution after ten years of service credit, provided atieaSt five of those years were performed at the City of Palo Alto. Aftert~nye~ of service credit,e!lch additional service credit yeai' iilcreases the employer contribution percentage by 5% until, at 20 years' service credit, the employee will be eligible upon retirement for 100% of the speCified employer contribution and 90% of their dependent coverage. The City of Palo Alto's health premium contribution for eligible post-:-JanuWy 1,2005 hires shall be the minimumcontribiltion set by PERS under section 22825.5 baSed on.a weight~ average ofavailable health plan premiums. 1, Tuition Reimbursement 1. City will reimburse expenses for tuition,books and curriculum fees, incurred by non- probationary employees within the representation ~nit, to 'a maximumof$I,OOOper fiscal year, for classes given by accredited inst,itutions ofleaming or approved specialized training groups. The City will also reimburse professional assoCiation memberships and C9nferenCe registration fees, professional books and periodicals; . . . . For purpose~()fthissubsection, tuition does not Include costs for equipment or tools (except for ooritputerhardwareand software), if the employee may keep such items at the end ofthe COluse. The City will reimburSe for travel. meals and lodging While away from 'home attending an educational conference that the supervisor authorizes as being job 14 '. Formatted: Font:.Tlmes New Roman, Strikethrough related or which wj]] improve an employee's skills. Pei City Policy and Procedure 1 ~Q2 . . the Pre-TraVel Authorization forin shOUld in~icate expenses that wiJ] be paid through emplOyee benefits. Employees receiving reimbursements forth¢se noHaxable expenses must substantiate these costs by SUbmitting appropriate receipts. . 2. . Purchase of job-related computer software, hardware, high-speed Internet access, tel~communicationequipment and home office equipmfmtlfumiture may be reimbursed uriderthe Section (a) $1,000 tuition reimbursement benefit. Consumables (j.e; printer ink. paper. batteries. etc.).do not gualifyfotreimburseineni. . 3. Health Clublgym membership reimbursement of these expenses is taxable to" the eIDployee. J. Vacation Cash Out Once each calendar year an employee may cash Ollt eight or more hours of vacation accrual in excess of80 hours, to a maximum of120 hours, provided that the employee has taken 80 hours of vacation in the previous 12 months. . . K. Bilingual Premium "$35 per pay period shall be paid to a bilingual employee whose abilities have been detennined by the HUman Resource Director as qualifYing to fill positions requiring bilingual speaking and/or writin~ ability when the employee regularly perfonns such duties. The Human Resource Dir!'lCtorwill determine the number, timing, location and duration of the assigrimeiits receiving the additional pay provided herein and which languages are needed .. Sign language shall be recognized as a bilingual skill under this Article. Disagreements over the designation of positions Will be referred first to the Labor Management Committee. If a disagreement still exists it will be referred to the Grievance Procedure. 15 private sector could expect to get today. The City needed to switch from a negotiating environment where more was expected whenever contracts were negotiated. The City could not afford to grow in labor costs and needed to clamp down, minimize, and be ,more efficient. Council Member Klein said the contract was not a great contract but it was a good contract. The benefit increase would cost the City 11 percent over three years or 3.5 percent per year which was slightly less than the inflation rate in the Bay Area. The increase in retirement benefits was in line with the Bay Area's industry retirement rates. The contract had a trade off in retirement benefits against reduced healthcare benefits and, in 20 years, the City would gain a savings of $10 million in reduced healthcare costs compared to increased retirement benefits. Council Member Cordell felt it was a fair contract and was in favor of the motion. Vice l"1ayor Kishimoto registered a "no" vote on the item. She said in fiscal year 2001-02, total payroll expenditures went from 61 percent of the General Fund to 68 percent in 2004-05. A $7 million increase in general fund payroll and a 5 percent reduction in general fund staffing resulted in less funds for infrastructure and a crunch on services. Staff needed to be more creative in delivering more services with less people. MOTION: Council Member Cordell moved, seconded by Morton, to approve the Resolution adopting a compensation plan for classified personnel (SEIU) and rescinding Resolution nos. 8452, 8540, 8595, 8608, 8623 and Resolution to support amending Section 1401 of the Merit System Rules and Regulations regarding the l"1emorandum of Agreement between the City of Palo Alto and Local 715, SEIU. Council Member Morton said the negotiation process was lengthy and he wanted the public to know the Council had negotiated with the SEIU union, the same Union that had been on strike with San Francisco hotel workers for a couple of years and with Stanford University for several months. The Union chose to take a small increase in salary and put more in the retirement benefits. The Council also negotiated placing a cap on future health care expenses. He urged the Council to support the motion. MOTION PASSED 5-2 Kishimoto, Mossar no, Beecham, Kleinberg absent. 10/10/06 9 City during the Procurement Process for a Solid Waste and Recyclable Material Collection Agreement MOTION PASSED 6-0 for Item No.4, Barton, not participating, Beecham, Kleinberg absent. MOTION PASSED 6-1 for Item 1\10. 5 (resolutions supporting Propositions lC, lE, 84 and opposing Proposition 90) Mossar no, Beecham, Kleinberg absent. MOTION PASSED 5-1 for Item No. 5 (resolutions supporting Propositions 86 and 89) Mossar no, Barton abstaining, Beecham, Kleinberg absent. MOTION PASSED 7-0 for Items 7 & 8, Beecham, Kleinberg absent. City Manager Benest confirmed the appointment of Valerie Fong as Utilities Director and said her start date would be· October 16, 2006. She would be formally introduced to the Council at the next City Council IVleeting on October 16, 2006. .. Council Member Mossar said she registered a "no" vote on Item 1\10. 5 because the Council's policy for bringing legislative matters forward had not been followed. 8A. (Old No.6.) Resolution 8657 entitled "Resolution of the Council of the City of Palo Alto to Support Amending Section 1401 of the Merit System Rules and Regulations Regarding the Memorandum of Agreement between the City Of Palo Alto and Local 715, SEIU" Resolution 8658 entitled "Resolution of the Council of the City of Palo Alto Adopting a Compensation Plan for Classified Personnel (SEIU) and Rescinding Resolution nos. 8452, 8540, 8595, 8608, and 8623." Council Member Klein noted he had asked to remove Item No.6 from the consent calendar because the issue should be discussed with the public and not be passed as an item on the consent calendar. Dick Rosenbaum, 757 Garland Drive, stated he was not in favor of the Council approving the SEIU agreement. He said the contract increased pension liabilities, did not effectively limit increases in health care costs for active employees, and exacerbated the problem of the unfunded liability for retiree health care costs. Council IVlember Mossar said she registered a "no" vote on the item because the agreement granted benefits to City employees which few people in the 10/10/06 8 Agenda posted according to PAMC Section 2.04.070. A binder containing supporting materials is available in the Council Chambers on the Friday preceding the meeting. ROLL CALL STUDY SESSION Special Meeting Council Conference Room October 10, 2006, 6:00 p.m. 1. Joint IVleeting with the Architectural Review Board regarding ARB issues ORAL COMMUNICATIONS Members of the public may speak to any item not on the agenda; three minutes per speaker. Council reserves the right to limit the duration of Oral Communications ADJOURI\IMENT * * * * * ROLL CALL SPECIAL ORDERS OF THE DAY 1. Item removed from the Agenda Regular Meeting Council Chambers October 10, 2006, 7:00 p.m. 2. Appointment of Applicants to the Architectural Review Board ORAL COIVIMUI\JICATIONS Members of the public may speak to any item not on the agenda; three minutes per speaker. Council reserves the right to limit the duration of Oral Communications APPROVAL OF MINUTES September 11, 2006 CONSENT CALENDAR Items will be voted on in one motion unless removed from the calendar by two Council Members. 10/10/06 1 3. 2nd Reading -Ordinance Adding Section 22.08.400 to Chapter 22.08 (Park Dedications) of the Palo Alto Municipal Code to Dedicate For Park Purposes a 6.2 Acre Parcel of Land at the Corner of EI Camino Real and Page Mill Road to be Known as the Stanford/Palo Alto Community Playing Fields for the Term of the City's Lease of Such Property W' Reading 9/18/06, Passed 6-0 Klein, Mossar not participating, Cordell absent) 4. 2nd Reading -Ordinance Amending Section 18.08.040 of the Palo Alto Municipal Code (the Zoning Map) to Change the Classification of Property Known as 901 San Antonio Road: BUILD/BRIDGE Project from GM to PC Planned Community, a Comprehensive Plan Amendment to Change the Land Use Map from Light Industrial to Mixed Use, and a Below Market Rate Housing Plan (lS' Reading 9/25/06, Passed 8-0, Barton not participating) 2nd Reading -Ordinance Amending Section 18.08.040 of the Palo Alto Municipal Code (The Zoning Map) to Change the Classification of Property Known as 901 San Antonio Road: Taube-Koret Campus for lewish Life Project from GM to PC Planned Community, a Comprehensive Plan Amendment to Change the Land Use Map from Light Industrial to Mixed Use, a Variance from a Height Requirement, and a Below Market Rate Housing Plan (lS' Reading 9/25/06, Passed 8-0, Barton not participating) 5. Resolution to Support Proposition 1C -The Housing and Emergency Shelter Trust Fund Act of 2006 Resolution to Support Proposition 1E -The Disaster Preparedness and flood Prevention Act of 2006 Resolution to Support Proposition 84 -The Safe Drinking Water, Water Quality and Supply, Flood Control, River and Coastal Protection Bond Act of 2006 Resolution to Support Proposition 86 -The Tobacco Tax Act of 2006 Resolution to Support Proposition 89 -The California Clean Money and Fair Election Act of 2006 Resolution to Oppose Proposition 90 -The Government Acquisition and Regulation of Private Property Initiative ATTACHMENTS 6. Resolution Amending Section 1401 of the Merit System Rules and Regulations Regarding the Memorandum of Agreement between the City Of Palo Alto and Local 715A, SEIU Resolution Adopting a Compensation Plan for Classified Personnel (SEIU) and Rescinding Resolution Nos. 8452, 8540, 8595, 8608, 8623 7. Confirmation of Appointment of Valerie Fong as Utilities Director and Approval of Employment Agreement 10/10/06 2 8. (CMR:349:06) Approval of Scope of Work to Obtain Consultant Services to Advise the City during the Procurement Process for a Solid Waste and Recyclable Material Collection Agreement ATTACHMENTS AGEI\IDA CHANGES, ADDITIONS, AND DELETIONS HEARINGS REQUIRED BY LAW: Applicants and/or appellants may have up to ten minutes at the outset of the public discussion to make their remarks .and up to three minutes for concluding remarks after other members of the public have spoken. OTHER AGENDA ITEMS: Public comments or testimony on agenda items other than Oral Communications shall be limited to a maximum of five minutes per speaker unless acfditional time is granted by the presiding officer. The presiding officer may reduce the allowed time to less than five minutes if necessary to accommodate a larger number of speakers. UNFINISHED BUSINESS PUBLIC HEARINGS *9. (CMR:383:06) Public Hearing -To consider the Adoption of an Ordinance Amending a Planned Community (PC) Zone at 850 Webster Street (Channing House) [05PLN-00290], to Allow Construction of a Health Care Building and Underground Garage, and Approve a Variance for Daylight Plane Encroachments. Environmental Assessment: an Initial Study and Negative Declaration have been prepared for the Project ATTACHMENTS *(This item is quasi-judicial and subject to Council's Disclosure Policy) Resolution Approving Architectural Review (05PLN-00) for 850 Webster Street -Channing House Health Care Building; Channing House, Applicant) for Planned Community Zone Change PC-__ _ Ordinance Approving a Negative Declaration and Amending Section 18.08.040 of the Palo Alto Municipal Code (the Zoning Map) to Change the Classification of Property Known as 850 Webster Street (Channing House) from PC Planned Community 4900 To PC Planned Community , to Allow Construction of a Health Care Building and Underground Garage, and Approve a Variance for Encroachments into a Special Daylight Plane Along Two Property Li nes 10. (CMR:389:06) Public Hearing -To consider the Adoption of an Ordinance Amending Section 18.10.070 "Second Dwelling Units" of the Palo Alto Municipal Code to Prohibit Individual Sale of Second Units in the RrvlD and R-2 zoning districts, and declaring the urgency thereof, to take effect immediately ATTACHMENTS Ordinance Amending Section 18.10.070 of the PAMC Prohibiting Second Dwelling Units under Different Ownership from the Initial Dwelling Unit on an Interim Basis Pursuant to Government Code Section 65858 to take effect immediately REPORTS OF COI"1MITrEES AND COMMISSIONS 10/10/06 3 ORDINANCES AND RESOLUTIONS REPORTS OF OFFICIALS COUNCIL IViATTERS COUNCIL COMMENTS, ANNOUNCEMENTS, AND REPORTS FROM CONFERENCES Members of the public may not speak to the item(s). CLOSED SESSION This item may occur during the recess or after the Regular Meeting. Public Comments: Members of the public may speak to the Closed Session item(s); three minutes per speaker. 11. CONFERENCE WITH CITY ATTORNEY --EXISTING LITIGATION Subject: The Embarcadero Publishing Companv, dba The Palo Alto Weekly v. The City of Palo Alto, SCC #1-05-CV-049362 Authority: Government Code section 54956.9(a) ADJOURNMENT Persons with disabilities who require auxiliary aids or services in using City facilities, services, or programs or who would like information on the City's compliance with the Americans with Disabilities Act (ADA) of 1990, may contact 650-329-2550 (Voice) 24 hours in advance. 10/10/06 4 TO: HONORABLE CITY COUNCIL FROM: CITY MANAGER DEPARTMENT: ADMINISTRATIVE SERVICES DATE: October 10, 2006 CMR: 388:06 SUBJECT: APPROVAL OF RESOLUTIONS AMENDING THE MERIT SYSTEM RULES AND REGULATIONS TO ADOPT A MEMORANDUM OF AGREEMENT WITH SERVICE EMPLOYEES' INTERNATIONAL UNION (SEIU), LOCAL 715 AND ADOPTING A NEW COMPENSATION PLAN FOR SEIU CLASSIFIED PERSONNEL RECOMMENDATION Staff recommends the following to Council: 1. Approve the attached resolution amending Section 1401 of the Merit System Rules and Regulations to adopt a new Memorandum of Agreement between the City of Palo Alto and SEIU, Local 715 for an effective period of May 1, 2006 to June 30, 2009 (38 months). 2. Approve the attached resolution adopting a new Compensation Plan for SEIU Classified Personnel, effective with the pay period including May 1,2006 through June 30, 2009. BACKGROUND The City's agreement with SEIU Local 715 expired on April 30, 2006. The City commenced negotiations with SEIU on March 22, 2006 regarding the terms and conditions of employment for this represented unit. Following five months of negotiations consisting of29 bargaining sessions, City staff and members of SEIU have reached an agreement within Council authorization, the details of which are contained in the attached Memorandum of Agreement. Under State law, the City of Palo Alto is required to bargain in good faith and cannot unilaterally make contract decisions for represented employee groups. The City must also comply with collaborative bargaining laws and rules, and actions taken may be subject to review by the California Public Employee Relations Board (PERB). The City of Palo Alto is part of a regional labor market and competes for talent with other public government and quasi-government agencies. For the purpose of negotiating labor agreements, the Bay Area Consumer Price Index (CPI) is generally used as a way to measure the impact of inflation on wages. CMR: 388:06 Page 1 of6 Based on recent negotiations involving SEIU and other organizations such as Stanford Hospital, County of Santa Clara and Santa Clara Valley Transportation Authority, City staff anticipated difficult negotiations with SEIU. The main issues of contract negotiations with these other organizations were salary increases and enhanced retirement benefits, with SEIU negotiating multi- year contracts with salary increases that have ranged between 9-12 percent as well as an enhanced retirement formula with the County of Santa Clara. Nine of the eleven labor market cities that were previously used as benchmarks for Palo Alto have improved or are in the process of improving their retirement formula beyond 2 percent @ 55 within the last several years. Attachment A provides a summary of Palo Alto's 12 benchmark survey cities and identifies the cities which have enhanced retirement formulas. One of City management's key goals during this negotiation process was to contain escalating healthcare costs for existing employees and future retirees while retaining a competitive market position. According to a recent 2006 summary of [mdings by The Kaiser Family Foundation (KFF), employer health insurance premiums for family coverage have increased by 87.0 percent since the year 2000. For the City of Palo Alto, the increase has been substantially higher. Over the last five years, the average health premium costs paid by the City increased by 15.5 percent annually, for an overall total increase of approximately 93 percent. An article on the KFF website (kff.org) entitled, "Comparing Projected Growth in Health Care Expenditures and the Economy," states that the Centers for Medicare and Medicaid Services projected national health care expenditure to increase from the current $2.16 trillion to $4.0 trillion by 2015, an increase of85 percent. It also mentions that since 1970, health care spending has grown at an average annual rate of9.9 percent or about 2.5 percentage points faster than the nation's Gross Domestic Product (GDP). It adds that health care spending was at 7.2 percent ofGDP in 1965 compared to over 16 percent today with a projection of 20 percent in 10 years. During the past several years, the City has continued to work towards reductions in the high cost of health insurance benefits. One of the steps taken through prior negotiations was to cap the City contribution for healthcare premiums for the International Association of Firefighters bargaining unit and Management and Professional group. In addition, the majority of Palo Alto Police Officers Association employees agreed on a voluntary basis to be covered by less expensive health plans. In the prior SEIU agreement, the number of current employees allowed to enroll in PERS Care (the most expensive health plan) was limited to 62 of the 589 employees. The City also reached agreements with all the City's bargaining groups to raise the vesting requirement for eligibility for retiree medical benefits from 5 years to 20 years for new hires. Finally, since fiscal year 2002-03, the City's general fund (non-enterprise) workforce has been reduced by 10.0 percent (over 70 employees) through attrition and layoffs. These actions taken together have significantly reduced current healthcare costs. DISCUSSION Key items in the proposed agreement with SEIU include: CMR: 388:06 Page 2 of6 Healthcare Cost Containment • The City will reduce maximum payment for medical premiums from the highest health plan (PERS Care) to the second highest (currently Blue Shield HMO) for all current employees and future retirees. This change represents approximately $450,000 annual savings in medical premium payments made by the City for current employees alone. To illustrate the impact in cost: monthly premium payments made by the City for an employee plus family in the PERS Care plan versus the PERS Choice plan are $2,001 compared to $1,183 for PERS Choice, a savings of $818 per month or $9,816 per year. The elimination ofthe PERS Care option will significantly cut healthcare premium costs of future retirees. • The City will provide an annual stipend of$50,000 to cover the out-of-pocket costs for employees that move from PERS Care to PERS Choice. The maximum stipend will be $1,000 per employee or $2,000 for employees with family coverage for the term of the contract. The purpose of this stipend is to provide coverage for non- reimbursable costs incurred by employees with serious medical needs. It is not anticipated that all 57 employees will need reimbursement since some will retire, others will select plans other than PERS Choice, and many will not incur expenses requiring reimbursements. CalPERS Retirement Salary • The agreement increases the pension formula from 2.0 percent per year of service to 2.7 percent @ 55 years of age effective January 6, 2007. Total cost for this change is 7.0 percent. Effective January 6, 2007, all employees will pay 1.0 percent share of the PERS pension expense, reducing the cost to the City to 6 percent. The net present value O'WV) ofthis enhanced benefit is approximately $25.0 million to be paid over the next 23 years, for an average annual cost of $1.08 million. • Effective the pay period inclusive of July 1, 2007, all employees will pay an additional 1.0 percent share toward 2.7 percent @ 55 for a total of 2.0 percent, reducing the cost to the City to 5.0 percent. • A 7.5 percent base salary increase over the 3-year contract. After taking into account the employee contribution of2.0 percent towards the PERS expense, this provision results in a net salary increase of 5.5 percent over the term of the 3-year contract. The latest Bay Area CPI, reported in September, was 3.8 percent. This is the factor that is generally considered the benchmark for salary increases. The annual salary increases are as follows: a) A zero percent base wage increase from May 1, 2006 to January 1, 2007; CMR: 388:06 Page 3 of6 b) A 1.0 percent base wage increase to all classifications effective January 1, 2007 (impacts only half of the fiscal year); c) A 3.5 percent base wage increase to all classifications effective July 1, 2007; d) A 3.0 percent base wage increase to all classifications effective July, 1, 2008. Strengthened Management Rights • The City re-affirmed existing language in the contract which gives the City the ability to outsource workforce following timely notification. • The City eliminated "in-lieu pay" for meals for Public Safety Dispatcher classifications. In-lieu meals were paid at time and one half base pay and will now be paid at the base salary rate only, eliminating 1/3 ofthe City's previous costs in this area. • The City has increased options for selecting qualified employees for promotional opportunities. Currently, if three qualified employees apply for a position in a department no other candidates may be considered. The City may now consider external candidates ifthree or more internal apply but do not successfully complete the selection process. • Night shift premium will only be paid if an employee works a complete night shift. Equity Adjustments and Other Modifications • The City has added several provisions to address recruitment and retention issues for classifications where there are labor market shortages of qualified candidates. Lineperson/Cable Splicer job classifications have been modified to provide greater entry level recruitment opportunities. Water Treatment Plant Operators, Water Transmission Operators, and Utility Installer Repairers will receive 1 percent base pay premium for additional certifications. • Work-out-of-classification pay has been capped at 5 percent for SEIU employees who receive authorized assignments other'than lead or supervisory assignments. Lead and supervisor assignments will receive 7 percent. The reduction of qualifying days and the implementation of a pay code to address this issue will also significantly reduce administrative requirements. • The agreement modifies various sections of the contract relating to reduction in work force, grievance and discipline procedures, union security, vacation accruals, worker's compensation benefits, tool allowances, pay practices, certifications, bereavement leave, and use of sick leave. CMR: 388:06 Page 4 0[6 • The impact of the above changes equals 0.75 percent of the base compensation and is effective September 30, 2006. A comprehensive summary ofthe changes made to the 2006-2009 SEIU Memorandum of Agreement can be found in Attachment B. RESOURCE IMPACT The proposed recommendations do not require a budget adjustment for fiscal year 2006-07 since the increases start at midyear or partially in the fiscal year and there are sufficient funds included in the adopted budget. The impacts for future years will be included in the proposed budgets submitted for fiscal years 2007-09. The total impact to the base compensation for SEIU totals $5.8 million or 11.65 percent for the 38 month agreement. Over a three-year period the agreement totals 11.0 percent: since staff wanted the SEIU agreement to coincide with the City's fiscal year to facilitate budget preparations, two extra months were added to the agreement resulting in the additional 0.65 percent. The City is balancing its risk between medical and pension costs by capping its medical premiums while enhancing the pension plan. Since CalPERS manages the pension fund (one of the largest funds in the world) and has a 9.2 percent rate of return over the last ten years, it is a more predictable expense versus extremely volatile health care expenses, which the City has little control over. The 7 percent annual costs of 2.7 percent @ 55 consist of 2 percent for the normal ongoing cost and 5 percent for the previous years of expense for current employees. The 5 percent figure will be paid over a 23 year period while the cost avoidance from capping medical expenses goes on into perpetuity . As mentioned previously, the City currently has 57 SEIU employees enrolled in the highest cost medical plan, PERS Care, so the negotiated changes result in an additional $450,000 in healthcare expenses. Furthermore, of the 589 current SEIU members, over 40 percent are age 50 or over, and can currently select PERS Care as their medical plan upon retirement. Given the current expense for PERS Care it is likely that this amount would increase into the millions of dollars should future SEIU retirees select this option. To illustrate the relative importance of capping retiree medical costs, if a current employee retires at age 55 with a life expectancy of 78 years of age, the City would pay the higher premium for approximately twenty-three years, a difference of approximately $333,600. Under this example, if all current 57 employees remained inthe higher cost plan the cost difference over the projected 23 years would be approximately $20.7 million in current dollars, and cost avoidance would be approximately $8.8 million (NPV). Again, using this example, if the current 589 employees in the unit convert to the higher cost plan at the City's current retirement plan selection rate, the difference in cost over the next twenty-three years would be approximately $78.7 million in current dollars and the projected cost avoidance would be $33.4 million (NPV). Using this analysis, the cost of enhanced retirement is offset by the significant reduction in future retiree medical cost. This change will significantly help control the over $148.7 million retiree medical liability recently documented in CMR 272:06 Results of Actuarial Study for Retiree Medical Benefits -Governmental Accounting Standards Board Statements Numbers 43 & 45 reported to Council June 20, 2006. CMR: 388:06 Page 5 of6 POLICY IMPLICATIONS This recommendation is consistent with existing City policies. ENVIRONMENTAL REVIEW This action does not require an environmental review. ATTACHMENTS A. Summary of the City's twelve benchmark survey cities, including Palo Alto. B. Summary of the changes made to the 2006-2009 SEIU Memorandum of Agreement. C. Total Cost ofSEIU MOA D. Resolution Amending Section 1401 of the Merit System Rules and Regulations. E. Resolution Adopting a Compensation Plan for Classified Personnel (SEIU). PREPARED BY: Helen Del Grosso, Manager of Employee Relations and Compensation Sandra T.R. Blanch, Risk and Benefits Manager Lalo Perez, Assistant Director, Administrative Services DEPARTMENTHEAD: ________________ _ RUSS CARLSEN Director of Human Resources DEPARTMENT HEAD: ________________ _ CITY MANAGER APPROVAL: CMR: 388:06 CARL YEATS Director of Administrative Services ---------------------------------EMILY HARRISON Assistant City Manager Page 6 of6