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HomeMy WebLinkAboutRESO7627RESOLUTION NO. 7627 RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO ADOPTING A COMPENSATION PLAN FOR MANAGEMENT AND CONFIDENTIAL PERSONNEL AND COUNCIL APPOINTED OFFICERS AND RESCINDING RESOLUTION NOS. 7531, 7567, 7578, 7600, and 7616 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 made a part hereof by reference, is hereby adopted for management and confidential personnel and Council appointed officers effective retroactive to the pay period including July 1, 1996." SECTION 2. The Compensation Plan as 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 hereby is authorized to implement the Compensation Plan adopted herein in her preparation of forthcoming payrolls. She is further authorized to make changes in the titles of employee classifications identified in the Table of Authorized Personnel contained in the 1996-97 budget, if such titles have been changed in the Compensation Plan. SECTION 5. Resolution Nos. 7531, 7567, 7578, 7600, and 7616 are hereby rescinded. // // // // // // // // // // // // // // 1 961009 I.c 0031436 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 21, 1996 AYES: ANDERSEN, HUBER, KNISS, MCCOWN, ROSENBAUM, SCHNEIDER, SIMITIAN, WHEELER NOES: ABSENT: FAZZINO ABSTENTIONS : ATTEST: APPROVED: 6441 Ci y Clerk O �yar APPROVED AS TO FORM: - (0 . Sbnior Asst. City Attorney Dep Ci y Manager, Administrative Services 2 961009 (.c 0031436 CITY OF PALO ALTO COMPENSATION PLAN Management and Confidential Personnel and Council Appointees • EFFECTIVE: Pay period including July 1, 1996 through June 30, 1997 • • COMPENSATION PLAN FOR THE CITY OF PALO ALTO Management and Confidential Personnel SECTIQN I, COMPENSATION This section applies to all regular management and confidential positions except Council Members and Council -appointed officers. Notwithstanding this exception, the Council may authorize Variable Management Compensation for Council -appointed officers. Each Council -appointed officer shall be the responsible decision -maker under this Plan for those employees in departments under his/her control. A. Management and Confidential Compensation Policy The City's policy for management and confidential compensation is to establish and maintain a general structure based on marketplace norms and internal job alignment with broad compensation grades and ranges. Structures and ranges will be reviewed annually and updated as necessary based on marketplace survey data, internal relationships, and City financial conditions. Individual compensation adjustments will be considered by the Council -appointed officer based on (1) performance factors including achievement of predetermined objectives; (2) pay structure adjustments; and (3) City financial conditions. B. Basic Plan Elements Structure. The compensation plan includes separate multi -grade structures for both management and confidential employees. Each grade will have a control point which is used for budgetary purposes. All management and confidential 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 compensation which is no less than 25% below the control point and no more than 15% above the control point. Actual salary within the range is determined by performance. The normal working range within which most actual salaries will fall will be within + 5% of the control point. As needed competitive marketplace studies will be made of 10-15 agencies similar to Palo Alto in number of employees, population and services provided. These studies will focus on general salary trends for groups of management positions such as first line supervisors, administrative, confidential, professional and top management. Periodically, studies will more specifically include position -by -position comparisons using marketplace and internal relationship data. Depending on the results of these studies, the entire pay grade structure may be adjusted or individual positions may be reassigned to different pay grades. Such adjustments will only affect the salary administration framework. No individual salaries will be automatically changed because of structural adjustments. Fixed and Variable Compensation. Management compensation includes fixed bi-weekly salary and Variable Management Compensation (VMC). Fixed bi-weekly salary is paid on a continuing basis. Variable Management Compensation is a one-time cash award in an amount not to COMPENSATION PLAN MANAGEMENT AND CONFIDENTIAL PERSONNEL AND COUNCIL -APPOINTEES Page 2 exceed 15% of the position control point. On a fiscal year basis, the sum of both compensation components must fall within pay grade limits of no less than 25% below the control point and no more than 15% above the control point. Fixed salary increases may be earned in accordance with administrative guidelines based on growth within the position and performance which meets or exceeds position standards. In addition, employees may earn Variable Management Compensation by meeting or exceeding objectives established under the annual performance planning and appraisal system. Variable Management Compensation requalification is necessary for each appraisal period. Compensation Adjustment Authorization. Each year the City Manager will propose for Council approval a compensation adjustment authorization incorporating the requests of each Council - appointed officer which will include amounts sufficient to implement base pay increases and Variable Management Compensation. The compensation adjustment authorization will be based on the following factors: competitive market, changes in internal position relationships, and the City's ability to pay. Performance Planning and Appraisal. Performance planning and appraisal will be conducted at least annually by the Council -appointed officers and department heads prior to reviewing individual employee fixed and variable compensation. This process includes both review of previous performance plan and preparation of the performance plan for the next planning period (usually the fiscal year). Performance plans are jointly prepared by the employee and supervisor with the concurrence of the department head or Council -appointed officer. The performance plans shall contain measurable objectives which place special emphasis on position description duties or specific assignments. Progress toward meeting objectives shall be monitored periodically. At the conclusion of the fiscal year (or review period), supervisors shalt make a final determination of general performance and performance plan achievement. Such determinations and recommendations shall be forwarded to department heads or council -appointed officers who will then determine individual fixed and variable compensation adjustments according to the provisions of the compensation plan. C. Management and Confidential Compensation Adjustment Authorization 1. Council -appointed officers are authorized to pay salaries in accordance with this plan to non -Council -appointed management and confidential employees in an amount not to exceed the aggregate of approved management and confidential positions budgeted at the control points indicated in the attached Tables for fiscal year 1005-06 1996-97. In addition, for fiscal year 1995-06 1996-97, Council -appointed officers in aggregate are authorized up to 3% of the management and confidential salary and benefit budget for the fiscal year, plus unused Variable Management Compensation funds from the previous fiscal year to apply toward Variable Management Compensation for individual management and confidential employees who qualify under the provisions of this Management and Confidential Compensation Plan. - COMPENSATION PLAN MANAGEMENT AND CONFIDENTIAL PERSONNEL AND COUNCIL -APPOINTEES Page 3 2. Individual management and confidential fixed and variable compensation authorized by a Council -appointed officer under the Management and Confidential Compensation Plan may not be less than 25% below nor more than 15% above the control point for the individual position grades authorized in Table I of this plan. 3. The Council -appointed officers are authorized to establish such administrative rules as are necessary to implement the Management and Confidential Salary Plan subject to the limitations of the approved compensation adjustment authorization and the approved grade and control point structure. 4. In the event a downward adjustment of a position grade assignment indicates a reduction in the established salary of an individual employee, the Council -appointed officer may, if circumstances warrant, continue the salary for such employee in an amount in excess of the revised grade limit for a reasonable period of time. Such interim salary rates shall be defined as "Y -rates." SECTION II. SPECIAL COMPENSATION This section applies to all eligible regular management and confidential positions except as otherwise indicated. Eligibility shall be in conformance with the Merit Rules and Regulations and Administrative Directives issued by the City Manager for the purposes of clarification and interpretation. A. Annual Adjustment 1. Annually, each employee who holds a regular full-time appointment in the municipal service on or before July first and continues in such status throughout 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 service during the year. 2. Effective with 1997 pay period no. 01, beginning December 21, 1996, the provisions of Section II. A. 1. will be discontinued, and base pay will be increased by 1% for management, confidential and Council appointed personnel. No annual adjustment will be paid after pay period no. 25 in December 1996. B. Overtime. Working Out of Classification. and In -Lieu Holiday Pay Compensation for overtime work, and scheduled work on paid holidays, shall 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 i COMPENSATION PLAN MANAGEMENT AND CONFIDENTIAL PERSONNEL AND COUNCIL -APPOINTEES Page 4 classification, the City Manager may authorize payment within the range of the higher classification. C. Night Shift Premium Night shift differential shall be paid at the rate of 5% to regular full-time employees who are regularly assigned to shift 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. D. Uniform Purchase Plan - Sworn Police and Fire Personnel Uniforms including cleaning will be provided with replacement provisions on an as -needed basis in conformance with department policy. E. Group Insurance 1. Health Plan The City shall pay all premium payments on behalf of employees and dependents who are eligible for the employee -selected Public Employees' Medical and Hospital Care Act (PEMHCA) optional plan. a) Retiree Medical Provisions 1) Monthly City -paid premium contributions for a retiree -selected PEMHCA optional plan will be made as provided under the Public Employees' Medical and Hospital Care Act. b) Active Employee Domestic Partners 1. Effective July 1, 1996, active employee domestic partners who meet the requirements of the City of Palo Alto Declaration of Domestic Partnership, and are registered with the Human Resources Department, will be eligible : for reimbursement of the actual monthly premium cost of an individual health plan, not to exceed the average monthly premium cost of individual coverage under the PEMHCA health plans. Evidence of premium payment will be required with request for reimbursement_ 2. Dental Plant a) The City shall pay covered plan charges on behalf of all eligible employees and dependents. The maximum benefits per calendar year shall be $2,000. In addition, • COMPENSATION PLAN MANAGEMENT AND CONFIDENTIAL_ PERSONNEL AND COUNCIL -APPOINTEES Page 5 the City will provide 50% of "usual, customary and reasonable" charges up to $1500 lifetime maximum for orthodontic benefits. b) Effective July 1, 1996, dependents will include domestic partners, as defined under Section E. 1. b). 3. Basic Life Insurance The City shall provide a basic life and AD & D insurance plan in an amount equal to the employee's annual basic compensation (rounded to the next highest $1,000). 4. Long Term Disability Insurance The City shall provide long term disability insurance with a benefit of 2/3 monthly salary to a maximum of $6,000. Premiums for salaries between $6,000 and $9,000 per month are paid by the employee. 5. Vision Care a) The City shall provide vision care coverage for employee and dependents. Coverage is equivalent to the $20 deductible Vision Services Plan A. b) Effective July 1, 1996, dependents will include domestic partners, as defined .under Section E. 1. b). F. Police Department - Personnel Development Program Pursuant to administrative rules governing eligibility and qualification, the following may be granted to swom police personnel: P.O.S.T. Intermediate Certificate: 5% above base salary P.O.S.T. Advanced Certificate: 7 1/2% above base salary G. Management Benefit Program All City staff management and confidential employees are eligible for Sections 1, 2, 3, 4 and 5 of the Management Benefit Program. City Council Members are eligible for Section 3a only. Specified amounts under this program will be applied on a pro rata basis for employees who are part time or in a management or confidential pay status for less than the full fiscal year. • COMPENSATION PLAN MANAGEMENT AND CONFIDENTIAL PERSONNEL AND COUNCIL -APPOINTEES Page 5 1. Professional Development - Reimbursement Reimbursement for authorized self-improvement activities may be granted each management employee up to a maximum of $500 per fiscal year, except that unused reimbursement allowance may be carried forward from the previous fiscal year to a maximum allowance (current and carryover) of $1,000 per fiscal year. The following items as defined in Policy and Procedures No. 2-7 are eligible for reimbursement: a Civic and professional association memberships b. Conference participation and travel expenses c. Educational programs/tuition reimbursement. The education must maintain or improve the employee's skills in performing his or her job, or be necessary to meet the express requirements of the City or the requirements of applicable law. The education to which the reimbursement relatesmust not be part of a program qualifying the employees for another trade or business; or be necessary to meet the minimum educational requirements for qualification for employment. Permissible educational expenses are refresher courses, courses dealing with current developments, academic or vocational courses, computer software and hardware to a maximum of $500 per fiscal year related to such courses, as well as the travel expenses associated with the courses. d. Professional and trade journal subscriptions. e. Physician -prescribed personal health program as indicated under 3b of this section. 2. Professional Development Leave Authorized paid leaves of absence for up to one year will be granted in accordance with the following requirements: a. Eligibility is subject to a minimum City service requirement of five years. b. Compensation during the Professional Development Leave shall not exceed 50% salary and full benefits. c. When granted a Professional Development Leave shall require an employee commitment of at least two -years' service following return from the Leave. To the extent the full two-year commitment is not fulfilled, the employee shall re -pay the City a pro rata amount of the salary paid during the Leave based on the percentage of the two-year commitment not fulfilled. i • COMPENSATION PLAN MANAGEMENT AND CONFIDENTIAL PERSONNEL AND COUNCIL -APPOINTEES Page 7 d. The Professional Development Leave program shall relate to the employee's job assignment. e. An employee's job assignment activity shall be adequately covered during his/her absence with emphasis on the development of subordinates. f. The leave of absence period shall be adequately coordinated with departmental priorities and workload. Professional Development Leaves shall be based on internship exchanges, and/or loaned executive arrangements; scholastic and/or authorship programs; or educational travel -study plans. Leave of absence schedules will be apportioned among all levels of management and confidential employees and will be based on an evaluation of each employee's performance record. Each paid sabbatical leave will be limited to a maximum of one year and not more than two employees being on leave simultaneously. Sabbatical leaves must be cleared in advance and approved by a Council -appointed officer for his/her subordinates. Professional Development Leaves granted in excess of 30 days shall be noticed to the Council. 3. Personal Health Program - Physical Fitness a. All management and confidential employees will -receive are eligible to receive periodic physical examinations in accordance with administrative procedures. b. Subject to Internal Revenue Service regulations and with the written prescription of a medical doctor, an employee may be reimbursed for a personal health program as treatment for a diagnosed injury or illness. This activity will be reimbursed under G.1(e) above. 4. Excess Benefit Reimbursement Reimbursement for approved excess benefit expenses will be granted up to a maximum of $2,000 per fiscal year each for management and confidential employees and shall include the following benefit items: a. Life insurance premiums for City -sponsored plans, subject to federal and state tax limitations. b. Excess medical/dental expenses for employee and dependents which are not covered by existing City -sponsored plans. • COMPENSATION PLAN MANAGEMENT AND CONFIDENTIAL PERSONNEL AND COUNCIL -APPOINTEES Page 8 c. Excess professional development items wfiich are otherwise approved, to the extent they are not paid or reimbursed under any other plan of the City. d. :Dependent care expenses under the City's Dependent Care Assistance Program ("DCAP*), subject to the following limits: Dependent care expenses will be reimbursed only to the extent that the amount of such expenses reimbursed under this Management Benefit Program, when added to the amount (if any) of annual dependent care expenses that the participant has elected under the City's Flexible Benefits Plan, do not exceed the maximum permitted under the DCAP. 1) The annual amount submitted for reimbursement cannot exceed the income of the lower -paid spouse. 2) The expenses must be employment -related expenses for the care of one or more dependents who are under 13 years of age and entitled' to a dependent deduction under Internal Revenue Code section 151(e) or a dependent who is physically or mentally incapable of caring for himself or herself. 3) The payments cannot be made to a child under 19 years of age or to a person claimed as a dependent. 4) If the services are provided by a dependent care center, the center must comply with all state and local laws and must provide care for more than six individuals (other than a resident of the facility). 5) Dependent care expenses not submitted under this section are eligible under the City Dependent Care Assistance Plan (DCAP). However, the maximum amount reimbursed under DCAP will be reduced by any amount reimbursed under the Excess Benefit Plan. If the full excess benefit reimbursement is not used during the fiscal year, the difference between the amount used and the maximum (or pro rate maximum) may be applied at the employee's option to deferred compensation under the City Plan(s). Notwithstanding the foregoing, no expense shall be reimbursed under this Excess Benefit Reimbursement program unless the payment of such reimbursement will be nontaxable to the recipient under the applicable income tax laws, as they may be in effect from time to time. COMPENSATION PLAN MANAGEMENT AND CONFIDENTIAL PERSONNEL AND COUNCIL -APPOINTEES Page 9 5. Management Annual Leave At the beginning of each fiscal year regular management and confidential employees will be credited with 40 48 hours of annual leave which may be taken as paid time off, added to vacation accrual (subject to vacation accrual limitations), taken as cash or taken as deferred compensation. When time off is taken under this provision, 10 -hour shift workers will receive one shift off for each 8 hours charged; 24 -hour shift workers will receive one- hatf shift off for each 8 hours charged. Entitlement under this provision will be reduced on a prorated basis for part-time status, or according to the number of months in paid status during the fiscal year. Unused balances as of the end of the fiscal year will be paid in cash unless a different option as indicated above is elected by the employee. H. Automobile Expense Allowance For those employees whose duties require exclusive use of a City automobile, the City Manager (or in the case of Council -appointed officers, the City Council) may authorize payment of $300 per month in lieu thereof. 1. Commute Incentives and Parking Employees who qualify may voluntarily elect one of the following commute incentives: Civic Center Parking. Employees assigned to Civic Center and adjacent work locations. The City will provide a Civic Center Garage parking permit. New employees hired after July 1, 1994 may initially receive a parking permit for another downtown lot, subject to the availability of space at the Civic Center Garage. Public Transit. The City will provide monthly Commuter Checks worth the value to $20. These vouchers may be used toward the purchase of a monthly transit pass. Carpool. The City will provide carpool vouchers worth the value of $20 per month to each eligible employee in a carpool with two or more people. These vouchers may be used a designated service stations toward the purchase of fuel and other vehicle -related expenses. Bicycle. The City will provide bicycle vouchers worth the value of $20 per month to eligible employees who ride a bicycle to work. These vouchers may be used at designated bicycle shops for related bicycle equipment and expenses. Walk. The City will provide walker vouchers worth the value of $20 per month to eligible employees who walk to work. These vouchers may be used at designated stores for expenses related to walking such as footwear and related accessories. COMPENSATION PLAN MANAGEMENT AND CONFIDENTIAL PERSONNEL AND COUNCIL -APPOINTEES Page 10 J. Expen§e Allowance Mayor Vice Mayor Per Pay Period Per Month (Approx.1 $69.23 $150.00 $46.15 $100.00 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 "Optional Benefits" or portions thereof, are intended only for rare instances and require the approval of the City Manager or designee, or for Council -appointed officers, the City Council. Procedure Qualifications In order to qualify for relocation benefits, the following conditions must be met: 1. Actual relocation, or contracts designed to establish a fixed domicile, shall occur within one year of the initial date of employment. 2. Existing employees promoted to a covered position are not eligible. 3. Recold-keeping requirements will parallel those required for expense reimbursement for travel, conferences and meetings. 4. Provision of Optional Benefits is contingent upon completion of a minimum of two years' City employment unless a longer term is specified. Provision of Additional Relocation Benefits for Council -Appointed Officers. Assistant City Manager and Department Heads is contingent upon completion of a minimum of five years' City employment. Failure to complete the minimum term will require repayment of those benefits on a pro -rata basis computed on the actual time of City service. Acceptance of relocation benefits by an employee does not constitute a commitment by the City to any minimum term of employment. • • COMPENSATION PLAN MANAGEMENT AND CONFIDENTIAL PERSONNEL AND COUNCIL -APPOINTEES Page 11 Basic Package 1. Professional Relocation Counseling - An agency designated by the City will provide relocation information and counselling to the employee. Information to be provided includes items such as a personalized cost -of -living analysis, home and rental locations, transportation, weather patterns, schools, recreation, etc. 2. En Route Expenses - Direct common carrier transportation will be provided in full for all family members. 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 percent 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 Goods Shipment - Full costs will be paid for the shipment of all personal items normally considered "Household Goods." Items excluded include recreational vehicles, firewood, building materials, sand, boats, airplanes, and perishable items such as food or plants. Shipment of up to two automobiles is permitted. Storage of household goods will be provided for 30 days. Optional Benefits 1. Sale and Purchase Costs - The City will reimburse costs that arise in the sale and/or purchase of residences including: a. Real estate commissions on the sale of the former residence up to six (6) percent of the sales price. b. The employee's portion of non -recurring closing costs on both sale and purchase of residences limited to the following: Title Insurance Policy and Escrow Fees Loan and Assumption Fees Private Mortgage Insurance City and County Transfer Taxes Tax Service, Notary and Recording Fees Credit and Appraisal Reports Property Survey Fees Inspection Fees c. "Points" on purchase of residence are specifically excluded. COMPENSATION PLAN MANAGEMENT AND CONFIDENTIAL PERSONNEL AND COUNCIL -APPOINTEES Page 12 2. Miscellaneous Expense - The City will reimburse miscellaneous expenses associated with the relocation. The amount shall not exceed $2,000. 3. Temporary Living Expense - Up to thirty (30) days' temporary living expenses will be available under the following guidelines: a. Lodging - 100 percent of actual and reasonable costs for all family members. b. Per Diem - 100 percent of the established City rates for employee and spouse/mate, and 50 percent of the established City rate for dependents for the first 15 days; 50 percent of the established City rate for employee and spouse/mate, and 25 percent of the established City rate for dependents over the last 15 days. c. Car Rental - Up to 30 days for a single vehicle is available until such time as the employee's personal vehicle becomes available. 4. House Hunting Expense - The City will reimburse expenses for one house hunting trip for both employee and spouse/mate. The trip shall be limited to a maximum of seven days. Travel expenses are limited to the lesser of common carrier rates or the established City rate for automobile use. Lodging is provided on an actual and reasonable basis. Per diem expenses are allowed according to the established City rates. Expenses for children are not covered. 5. Expenses for Renters - The City may reimburse the following expenses for employees moving from or into rental housing: a. Costs arising from the need to break an existing lease up to a total payment of three times the current monthly rental rate. The first and last month's rent to a maximum of $3,500 on a Palo Alto area rental accommodation. Additional Relocation Benefits for Councii-Appointed Officers. Assistant City Manager and Department Heads As part of an employment offer, additional relocation benefits may be authorized by the City Council for Council -appointed officers or the City Manager, Assistant City Manager or department heads. If consideration for additional benefits is requested by a final candidate, the City will provide the candidate through an agency designated by the City, a pre -hire relocation assistance analysis. This analysis will include: An assessment of the value of the home in the existing location and an estimate of the proceeds that the candidate will realize from the sale, an analysis and recommendations of the new home purchase or rental, loan assistance options and their cost to the City, and area counseling as provided for in Item 4. of the Basic Package. Once this analysis is complete, the appointing authority will design a relocation assistance package based upon the individual's needs and COMPENSATION PLAN MANAGEMENT AND CONFIDENTIAL PERSONNEL AND COUNCIL -APPOINTEES Page 13 circumstances, and the recommendations from the Pre -Hire Analysis. The program may consist of any of the elements from the Basic Package and/or the Optional Benefits as well as those described below. All direct City loans are subject to City Council authorization. 1. Marketing Management Program - If mutually agreed upon by both parties, the new CAO/Assistant City Manager/department head may work with an agency designated by the City to market his/her home in the old location through a "Marketing Management Program". The purpose of this program is to provide the City and the new official with a realistic projection of the funds that will be available for housing in the new location and to expedite the sale of the house in the old location. 2. Direct City Loans - The City may extend mortgage loans to new CAO/Assistant City Manager/department heads as part of a relocation assistance package. The two loan options are: a. Adjustable Rate Mortgage - This loan may be secured by a first or second deed of trust and may be fully amortized or for interest only. The interest rate will be set at 1/4 percent above the City's earning rate on its investment portfolio and will be adjusted annually. The term of the loan will be set by the City Council for a period not to exceed 15 years, but will be due and payable within six months of termination of employment for whatever reason. b. Shared Appreciation Loan - This loan may be secured by a first or second deed of trust and may be fully amortized or for interest only. The interest rate is set at five (5) percent. Additionally, the CAO/Assistant City Manager/department head is required to pay deferred interest equal to a portion of the future appreciation. That portion is determined by the proportion of the original City loan to the original house price. For example, if the City provided a loan amounting to 40 percent of the value of the home purchased, the employee would be required to pay 40 percent of net appreciation, if any, as deferred interest on the loan (net appreciation means appreciation after selling costs are deducted from sales price). The term of the loan will be set by the City Council for a period not to exceed 15 years, but will be due and payable within six months of termination of employment for whatever reason. Location of Property - To qualify for a Direct City Loan, the home being purchased must be located within a twenty -mile radius of the Civic Center, excluding property west of Skyline Boulevard (Highway 35). Loan Limits - Direct City Loans cannot exceed four times the annual salary of the lendee/employee. 3. Short Term Interest Buy -Down - The City may pay a portion of the interest for the first three years on a loan obtained by the CAO/Assistant City Manager/department head from a commercial lender. The City's portion of this "buy -down" is greatest in the first year and declines by 50 percent the second and third year with the Iendee paying the full interest rate on the loan • • COMPENSATION PLAN MANAGEMENT AND CONFIDENTIAL PERSONNEL AND COUNCIL -APPOINTEES Page 14 beginning with the fourth year. The "buy -down" for the first year will be 2 percent, unless otherwise determined by City Council. 4. Additional Purchase Costs - For CAO/Assistant City Manager/ department heads only, "points" on the purchase of a new residence are eligible for inclusion in this program. 5. Rental Subsidy - If it is determined that by choice, or tor whatever reason, the new CAO/Assistant City Manager/ department head will be a long-term renter, the City may provide rental subsidies up to a maximum of $500/month for 48 months. Reauiations and Guidelines 1. The City Manager, or designated subordinate, will institute and revise internal procedures to assure the efficient delivery of services to the new employee and minimize costs to the City. This will include the determination 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 determine the appropriateness of inclusion of specific items for reimbursement under this program. 3. Expenses incurred by the employee during relocation which are not covered are: a. Payments to friends for assistance. b. Automobile repairs. c. Costs incurred during the relocation but not directly related to personal transportation or forwarding of household belongings, i.e. uninsured losses during transit, entertainment expenses, etc. 4. Budgeting of ail relocation expenses will occur in the Human Resources and Utilities Departments. 5. Upon approval of the City Manager, provision of benefits under the section House Hunting Expenses and Professional Relocation Counselling may be provided before an employee formally accepts an offer of employment with the City. L. Retirement 1. The City shall pay the mandatory seven percent (7%) employee Public Employees' Retirement System (PERS) contribution. Such employer paid contributions shall be paid by the City in lieu of employee contributions notwithstanding the fact that such employer payment of contributions may be designated as employee contributions for purposes of PERS. This provision shall apply to Council -appointed officers and all regular • COMPENSATION PLAN MANAGEMENT AND CONFIDENTIAL PERSONNEL AND COUNCIL -APPOINTEES Page 15 management and confidential employees, except that for sworn police and fire management employees the City shall pay the mandatory nine percent (9%) of the employee's PERS contribution. 2. Notwithstanding subsection 1. above, upon filing a notice of retirement, the 7% City -paid PERS contribution (9% for sworn police and fire management personnel) will be converted to a salary adjustment of equal amount on a one-time irrevocable basis for the final twelve months immediately prior to retirement. Employee PERS contributions shall be made on a tax deferred basis, in accordance with Section 414(h)(2) of the Internal Revenue Code. All provisions of this subsection are subject to and conditioned upon compliance with IRS regulations. M. Sick Leave Conversion Management employees hired on or before December 1, 1983 who have 15 or more years of continuous service, 600 or more hours of accumulated unused sick leave and otherwise qualify under Sections 604 and 609 of the Merit System Rules and Regulations, may convert sick leave hours in excess of 600 to cash or deferred compensation, according to the formula set forth in Section 609. The maximum amount of such conversion is $2,000 per fiscal year. N. Meal Allowance Management employees assigned to attend night meetings are eligible to receive reimbursement for actual expenses up to the dinner rate limit established in Policy and Procedures 1-2 for out-of-town meetings. This provision covers only receipted meals actually taken. O. Vacation Vacation will be accrued when an employee is in pay status and will be credited on a bi-weekly basis. Such accrual and credit may not exceed three times the annual rate of accrual. Each eligible employee shall accrue vacation at the following rate for continuous service performed in pay status: (a) Less than four years. For employees completing less than four years continuous service: two calendar weeks vacation leave per year. (b) Four, but less than nine years. For employees completing four, but not more than nine years continuous service: three calendar weeks vacation per year. (c) Nine. but less than fourteen years. For employees completing nine, but not more than fourteen years continuous service; 160 hours vacation per year. • COMPENSATION PLAN MANAGEMENT AND CONFIDENTIAL PERSONNEL AND COUNCIL -APPOINTEES Page 16 (d) Fourteen. but less than nineteen years. For employees completing fourteen, but not more than nineteen years continuous service; 180 hours vacation leave per year. (e) Nineteen or more years. For employees completing nineteen or more years continuous service; 200 hours vacation leave per year, CITY OF PALO ALTO COMPENSATION PLAN, EFFECTIVE MANAGEMENT PERSONNEL CLASS NUM TITLE 159 ADM COMMUNITY SVCS 157 ADM HUMAN RES 123 ADM HUMAN SVCS 059 ADM POLICE 171 ADM PUBLIC WORKS 054 ADM UTILITIES 104 ADM ZONING 070 ADMIN SECRETARY/CM 115 ASST BUILD OFFICIAL 094 ASST CHIEF POLICE 132 ASST CHIEF POLICE -AD 051 ASST CHIEF POLICE -IN 108 ASST CITY ATTY 109 ASST CITY CLERK 107 ASST CITY MANAGER 143 ASST DIR PUBLIC WRKS 170 ASST DIR UT/ADM SVCS 119 ASST DIR UT/ENG/OPN 065 ASST DIR UT/RES MGMT 073 ASST DIRECTOR ADM SV 111 ASST FIRE CHIEF 168 ASST FLEET MGR 102 ASST MGR WQCP • JULY 1, 1996 GRADE CONTROL APPROX APPROX APPROX CODE POINT ANNUAL BI -WKLY • HRLY 40 5,070 60,840 2,340.00 29.25 43 4,700 56,409 2,169,60 27.12 37 5,470 65,644 2.524.80 31.56 40 5,070 60,840 2,340,00 29.25 40 5,070 60,840 2,340.00 29.25 40 5,070 60,840 2,340.00 29.25 33 6,052 72,633 2,793.60 34.92 46 4,350 52,208 2,008.00 25.10 33 6,052 72,633 2,793.60 34,92 24 7,598 91,187 3,507.20 43.84 21 8,200 98,404 3,784.80 47.31 22 8,001 96,012 3,692.80 46.16 29 6,697 80,371 3,091.20 38.64 45 4,465 53,580 2,060.80 25.76 14 9,762 117,145 4,505.60 56.32 23 7,796 93,558 3,598.40 44.98 24 7,598 91,187 3,507 20 43.84 19 8,623 103,480 3,980.00 49.75 20 8,401 100,817 3,877.60 48.47 25 7,413 88,961 3,421.60 42.77 25 7,413 88,961 3,421.60 42.77 43 4,700 56,409 2,169.60 27.12 34 5,905 70,865 2,725.60 34.07 CITY OF PALO ALTO COMPENSATION PLAN, EFFECTIVE JULY 1, 1996 MANAGEMENT PERSONNEL CLASS 4 .GRADE CONTROL APPROX APPROX APPROX NUM TITLE CODE POINT ANNUAL BI -WKLY HRLY 088 ASST PLANNING OFF 33 6,052 72,633 2,793.60 34.92 106 ASST TO CITY MGR 35 5,752 69,035 2,655.20 33 .19 100 AUDITOR 47 4,248 50,980 1,960 .80 24.51 116 BATTALION CHIEF 30 6,538 78,457 3,017 60 37 .72 118 CHIEF BLD OFFICIAL 27 7,049 84,593 3,253.60 40.67 066 CHIEF OFF-EMERG OPNS 36 5,612 67,350 2,590.40 32.38 112 CHIEF PLG OFFICIAL 28 6,879 82,555 3,175.20 39.69 082 CHIEF TRANSP OFF 27 7,049 84,593 3,253 .60 40.67 040 CITY TRAFFIC ENGR 31 6,368 76,419 2,939 .20 36 .74 125 CLAIMS INV/PARALEGAL 46 4,350 52,208 2,008.00 25.10 089 CONTRACTS ADM 39 5,200 62,4C0 2,400.00 30.00 153 COORD CHILD CARE 45 4,465 53,580 2,060.80 25.76 195 COORD COMM 34 5,905 70,865 2,725.60 34 .07 041 COORD ENVIRON PROTEC 34 5,905 70,865 2,725.60 34 .07 186 COORD LIB CIRC 48 4,139 49,670 1,910.40 23.88 136 COORD PUB WKS PROJ 47 4,248 50,980 1,960.80 24.51 084 COORD UTIL MKT SVCS 38 5,331 63,980 2,460.80 30.76 061 COORD UTILITY PROJ 43 4,700 56,409 2,169.60 27 .12 071 DEPUTY CITY CLERK 51 3,835 46,030 1,770.40 22.13 055 DEPUTY CITY MGR 16 9,292 111,508 4,288.80 53.61 075 DEPUTY DIR PW OPRNS 27 7,049 84,593 3,253.60 40.67 060 DEPUTY FIRE CHIEF 26 7,228 86,715 3,335.20 41 .69 081 DIR ADM SVCS 16 9,292 111,508 4,288.80 53.61 CITY OF PALO ALTO COMPENSATION PLAN- ! EFFECTIVE JULY 1, 1996 MANAGEMENT PERSONNEL CLASS , GRADE CONTROL APPROX APPROX APPROX NUM TITLE CODE POINT ANNUAL BI -WKLY HRLY 126 DIR ARTS & CULTURE 29 6,697 80,371 3,091.20 38.64 072 DIR COMM SVCS 20 8,401 100,817 3,877 .60 48.47 133 DIR HUMAN RESOURCES 20 8,401 100,817 3,877,60 48.47 131 DIR LIBRARIES 24 7,598 91,187 3,507 .20 43.84 194 DIR PARKS & GOLF CRS 27 7,049 84,593 3,253 .60 40 .67 134 DIR PLAN/COMM ENVIR 18 8,838 106,059 4,079,20 50.99 135 DIR PW/CITY ENGR 16 9,292 11],508 4,288.80 53.61 137 DIR REC & OPEN SPC 27 7,049 84,593 3,253.60 40 .67 121 DIR UTILITIES 09 11,046 132.558 5,098.40 63 .73 067 EMS COORD 40 5,070 60,840 2,340 .00 29.25 129 ENGR MGR - ELECTRIC 23 7,796 93,558 3,598.40 44 .98 120 ENGR MGR - WGW 23 7,796 93,558 3,598.40 44.98 138 EXECUTIVE ASSISTANT 43 4,700 56.409 2,169.60 27.12 098 FIN SYST ANALYST 39 5.200 62,400 2.400 .00 30.00 046 FINANCIAL ANALYST 46 4,350 52,208 2,008.00 25.10 139 FIRE CHIEF 19 8.623 103,480 3,980 .00 49.75 191 FIRE MARSHAL 29 6,697 80',371 3,091 .20 38.64 127 FLEET MANAGER 36 5,612 67,350 2,590.40 32.38 101 HUMAN RESOURCES REP 40 5,070 60,840 2,340.00 29.25 069 LEGAL ASSISTANT 49 4,035 48,422 1,862.40 23 .28 080 MANAGEMENT ASSISTANT 51 3,835 46,030 1,770.40 22.13 086 MANAGING ARBORIST 42 4,825 57,907 2,227.20 27.84 079 MGR ACCOUNTING 32 6,207 74,484 2,864.80 35.81 CITY OF PALO ALTO COMPENSATION PLAN. EFFECTIVE JULY 1, 1996 MANAGEMENT PERSONNEL CLASS * GRADE' CONTROL APPROX APPROX APPROX NUM TITLE CODE POINT ANNUAL BI -WKLY HRLY 049 MGR BUDGET 31 6,368 76,419 2,939.20 36.74 164 MGR COMM OPER 39 5,200 62,400 2,400.00 30.00 145 MGR COMP OPER & APPL 31 6,368 76,419 2,939 .20 36 .74 142 MGR COMPETITIVE ASSE 29 6,697 80,371 3,091 .20 38,64 141 MGR CULTURAL CENTER 45 4,465 53,580 2,060.80 25.76 140 MGR DATA COMM & TELE 41 4,945 59,342 2,282.40 28.53 063 MGR ECONOMIC RES 28 6,879 82,555 3,175.20 39 .69 185 MGR ELECTRIC OPRNS 27 7,049 84,593 3,253.60 40 .67 044 MGR EMP BENEFITS 35 5,752 69,035 2,655,20 33.19 045 MGR EMP REL & CMP 35 5,752 69,035 2,655.20 33.19 167 MGR EMPLOYMENT 35 5,752 69,035 2,655.20 33 .19 093 MGR ENV CONTROL PROG 39 5,200 62,400 2,400.00 30.00 039 MGR ENVRN COMPLIANCE 24 7,598 91,187 3,507.20 43 .84 105 MGR FAC MAINT & PROJ 32 6,207 74,484 2,864.80 35 .81 151 MGR HUMAN RES & DEV 35 5,752 69,035 2,655.20 33.19 128 MGR INFO TECH 27 7,049 84,593 3,253 ,60 40 .67 057 MGR INV DEBT & PROJ 31 6,368 76,419 2,939.20 36 .74 158 MGR LAB SERVICES 34 5,905 70,865 2,725.60 34 .07 175 MGR MAIN LIB SVCS 39 5,200 62,400 2,400.00 30.00 091 MGR POLICE COMP SYS 42 4,825 57,907 2,227,20 27.84 095 MGR PUR & CNTR ADMIN 32 6,207 74,484 2,864.80 35.81 103 MGR REAL PROPERTY 31 6,368 76,419 2,939.20 36.74 160 MGR SOLID WASTE 39 5,200 62,400 2,400.00 30.00 CITY OF PALO ALTO COMPENSATION PLAN. EFFECTIVE JULY 1, 1996 MANAGEMENT PERSONNEL CLASS • GRADE CONTROL APPROX APPROX APPROX NUM TITLE CODE POINT ANNUAL BI -WKLY HRLY 122 MGR SUPPLY RES 23 7,796 93,558 3,598.40 44.98 110 MGR TECH SUPPORT 35 5,752 69,035 2,555.20 33.19 150 MGR UTIL MKT SVCS 34 5,905 70,865 2,725.60 34.07 156 MGR UTIL OPRNS WGW 29 6,697 80,371 3,091.20 38.64 068 MGR UTILITY RATES 32 6,207 74,484 2,864.80 35.81 178 MGR WQC PLANT 24 7,598 91,187 3,507.20 43.84 163 PARKING EXAMINER 46 4,350 52,208 2,008.00 25.10 092 POLICE CAPTAIN 28 6,879 82,555 3,175.20 39.69 147 POLICE CAPTAIN-ADV 25 7,413 88,961 3,421.60 42.77 052 POLICE CAPTAIN-INT 26 7,226 86,715 3,335.20 41.69 096 POLICE CHIEF 20 8,401 100,817 3,877.60 48.47 148 POLICE CHIEF-ADV 17 9,061 108,742 4,182.40 52.28 050 POLICE CHIEF-INT 18 8,838 106,059 4,079,20 50.99 090 POLICE LIEUT 34 5,905 70,865 2,725.60 34.07 149 POLICE LIEUT-ADV 31 6,368 76,419 2,939.20 36.74 053 POLICE LIEUT-INT 32 6,207 74,484 2,864.80 35,81 038 PUBLIC COMMUN OFF 45 4,485 53,580 2,060.80 25.76 198 RISK MANAGER 35 5,752 69,035 2,655.20 33.19 074 SAFETY OFFICER 43 4,700 56,409 2,169.60 27.12 117 SR ACCOUNTANT 39 5,200 62,400 2,400.00 30.00 152 SR ASST CITY ATTY 23 7,796 93,558 3,598.40 44.98 130 SR AUDITOR 39 5,200 82,400 2,400,00 30.00 193 SR BUYER 46 4,350 52,208 2,008.00 25.10 CITY OF PALO ALTO COMPENSAT/ON PLAN. EFFECTIVE JULY 1. 1996 MANAGEMENT PERSONNEL CLASS ` GRADE CONTROL APPROX APPROX APPROX NUM TITLE CODE POINT ANNUAL BI -WKLY HRLY 187 SR ENGINEER 31 6,368 76,419 2,939,20 38.74 199 SR FINANCIAL ANLYST 39 5,200 62,400 2,400.00 30.00 188 SR POWER ENGINEER 29 6,697 80,371 3,091,20 38.64 064 SR RESOURCE PLANNER 29 6,697 80,371 3,091.20 38.64 190 STAFF ACCOUNTANT 47 4,248 50,980 1,960.80 24.51 155 SUPT ANIMAL SERVICES 40 5,070 60,840 2,340,00 29.25 183 SUPT GOLF COURSE 38 5,331 63,980 2,460.80 30.76 172 SUPT OPEN SPCE & SCI 35 5,752 69,035 2,655.20 33.19 173 SUPT PARKS 38 5,331 63,980 2,460.80 30.76 165 SUPT PW OPNS 38 5,331 63,980 2,460.80 30.76 144 SUPT RECREATION 35 5,752 69,035 2,655.20 33.19 043 SUPV ANIMAL SVCS 50 3,934 47,216 1,816.00 22.70 08!i SUPV BLDG INSPECTION 39 5,200 62,400 2,400.00 30.00 162 SUPV BLDG SERVICES 49 4,035 48,422 1,862,40 23.28 091 SUPV DATA PROC 36 5,612 67,350 2,590.40 32.38 047 SUPV ELECT OPNS PROG 39 5,200 62,400 2,400.00 30.00 114 SUPV ELECT SYSTEMS 33 6,052 72,633 2,793.60 34.92 161 SUPV FACIL MGT 42 4,825 57,907 2,227.20 27,84 077 SUPV FACILITY PROJ 44 4,581 54,974 2,114.40 26.43 113 SUPV INSP/SURV PW 42 4,825 57,907 2,227,20 27.84 169 SUPV JR MUSEUM 45 4,465 53,580 2,060.80 25.76 078 SUPV LIBRARIAN 43 4,700 56,409 2,169.60 27,12 154 SUPV PARKS 42 4,825 57,907 2,227.20 27.84 • • CITY OF PALO ALTO COMPENSATION PLAN' EFFECTIVE JULY 1, 1996 MANAGEMENT PERSONNEL • CLASS GRADE CONTROL APPROX APPROX APPROX NUM TITLE CODE POINT ANNUAL BI -WKLY HRLY 166 SUPV POLICE SERVICE 43 4,700 56,409 2,169.60 27.12 174 SUPV PUBLIC WORKS 42 4,825 57,907 2,227.20 27.84 058 SUPV REC PROG 45 4,465 53,580 2,060.80 25.76 062 SUPV RECYCLING PROG 51 3,835 46,030 1,770.40 22.13 124 SUPV REPRO & MAIL 51 3,835 46;030 . 1,770.40 22.13 176 SUPV REVENUE COLL 47 4,248 50,980 1,960.80 24.51 197 SUPV SHOP &FIELD WGW 37 5,470 65,644 2,524.80 31.56 177 SUPV THEATRE PROGMS 43 4,700 56,409 2,169.60 27.12 087 SUPV UTIL COMP SVCS 36 5,612 67,350 2,590.40 32.38 179 SUPV UTIL CUS SVC CN 47 4,248 50,980 1,960.80 24.51 042 SUPV UTIL MTR RD&FLD 43 4,700 56,409 2,169.60 27.12 182 SUPV WATER TRANS 37 5,470 65,644 2,524.80 31.56 180 SUPV WGW 37 5,470 65,644 2,524.80 31.56 181 SUPV WCC OPER 40 5,070 60,840 2,340.00 29.25 189 SUPV WTR MTR/CRS CON 43 4,700 56,409 2,169.60 27.12 056 SYSTEMS ANALYST 39 5,200 62,400 2,400.00 30.00 184 VETERINARIAN 33 6,052 72,633 2,793.60 34.92 146 WAREHOUSE SUPV 50 3,934 47,216 1,816.00 22.70 CITY OF PALO ALTO COMPENSATION PLAN EFFECTIVE 'JULY 1, 1996 CONFIDENTIAL PERSONNEL CLASS GRADE CONTROL APPROX APPROX APPROX NUM TITLE CODE POINT ANNUAL BI -WKLY HRLY 904 EXEC SECRETARY-CONF 83 3,510 42,120 1,620.00 20.25 905 HUMAN RSRCE ASST CNF 84 3,095 37,148 1,428.80 17.86 903 LEGAL SEC-CONF 82 3,681 44,179 1,699.20 21.24 • • •