HomeMy WebLinkAboutStaff Report 3841
City of Palo Alto (ID # 3841)
Finance Committee Staff Report
Report Type: Meeting Date: 5/23/2013
City of Palo Alto Page 1
Summary Title: Resolution Amending the 2013 Management and
Professional Compensation Plan
Title: Request Finance Committee Recommendation to Council to Adopt a
Resolution Amending the 2013 Management and Professional Compensation
Plan and Resolution Amendi ng the Merit Rules
From: City Manager
Lead Department: Human Resources
Recommendation
Staff recommends that the Finance Committee review the attached management
compensation study follow-up report and recommend that Council; (1) adopt a resolution
amending the FY 2013 Management and Professional Compensation Plan to implement the
study, and (2) adopt a resolution making conforming amendments to the Merit Rules.
Background
On May 6, 2013 the City Council discussed the proposed amendment to the FY 2013
Management Compensation Plan (Attachment A). The City Council referred the amendment to
the Finance Committee for further discussion.
The Management and Professional group includes 204 Full Time Equivalent (FTE) employees, or
about 20% of the City’s total workforce. There are 117 classifications in this group, of which
74% manage people (directors, managers, supervisors, and supervising classifications like
Principal Analyst and Senior Engineers). As noted in the FY 2014 Proposed Operating Budget,
the average salary for employees in this group is $114,884; the average total compensation is
$174,226. By comparison, the average salary for employees in the Utility Manager group is
$128,352; the average total compensation is $194,450. The average salary fo r employees in the
Fire Chief Association is $146,207; the average total compensation is $236,252. The average
salary for employees in the Firefighters group is $99,585; the average total compensation is
$192,083. The average salary for employees in the Police Management Association is
$168,028; the average total compensation is $282,042. The average salary for employees in the
City of Palo Alto Page 2
Police Officers Association is $108,953; the average total compensation is $204,606. The
average salary for employees in the SEIU group is $72,814; the average total compensation is
$123,137. When total compensation is compared, the average Management and Professional
compensation is lower than all groups except SEIU. (See Budget Table Attachment B)
In 2007, the City commissioned Fox Lawson and Associates to begin a study of the Management
and Professional classifications. Lawson completed the first portion of the study which included
the job classification benchmarking i.e., how positions are classified and described at the C ity.
Lawson led staff focus group sessions and determined which classifications would be used to
benchmark against the market. They also collected position description questionnaires and
used that data to recommend revised job descriptions. The City imp lemented this first part of
the study in January, 2009.
In 2009, the City hired a new consultant, Koff & Associates, to conduct a market salary survey,
including defining Palo Alto’s comparable cities and recommending placement of positions in
relation to the market. Employees were given the opportunity to review the data Koff collected
for the benchmark positions and appeal for review of the City’s determination of matching
positions. Koff gathered salary data between 2010-2011.
At the City’s request, Koff revised initial market recommendations that were based on salary
only to include “total compensation,” including benefits such as pension, active employee and
retiree healthcare for each of the benchmarked positions. The total compensation definit ion of
salary and benefit information collected for each of the 82 benchmarked classifications is
identified in Attachment C. At the time of the Koff study however, Palo Alto employees were
paying a small portion of their PERS contribution. Currently, th e Management and Professional
group pays its entire employee PERS contribution, 7%, 8% or 9% depending on year of hire.
The final total compensation study compared 82 classifications within the Management and
Professional group to the salary and benefits of comparable positions in the 14 benchmark
cities. The benchmark cities are Alameda, Anaheim, Berkeley, Burbank, Fremont, Hayward,
Long Beach, Mountain View, Redwood City, Roseville, San Jose, San Mateo, Santa Clara and
Sunnyvale. The recommended salary placements are based on that data, supplemented with
internal equity alignment between positions within the City. The staff recommendation
currently before the Council seeks to implement this market placement phase of the study by
amending the Management and Professional Compensation Plan with the proposed salary
schedule. Attachment D lists each classification in the group in order of the proposed
percentage change in salary.
Council should be aware that there is a third component of the City’s total c ompensation study:
individual placement within the salary ranges adopted by Council. This phase of the
compensation study will be administered by the City Manager (or other CAO for employees
within their units), in consultation with the Chief People Officer and department heads, using
an updated performance evaluation program.
City of Palo Alto Page 3
This supplemental staff report will address questions raised by Council at the May 6 session.
1. How were the 14 cities chosen as comparators?
The agencies were chosen to represent Palo Alto’s geographic labor market, communities
with comparable size and scope of services, and included cities containing one or more
utilities. Although Utilities managers have separated from the Management group and
now bargain separately, there are two reasons why cities with utilities remain important
comparators. First, many city employees in the Management group support Palo Alto
Utilities, including the City Managers’ Office, Office of Management and Budget,
Purchasing, Human Resources, Information Technology, the City Attorney’s Office, the
Clerk’s Office, and the Auditor’s Office. Second, because many Management employees in
departments other than Utilities perform comparable functions (such as engineers, project
managers and management analysts), internal organizational alignment and equity are
important factors that must be considered.
2. Why does the study include Southern California large cities like Anaheim, Burbank and Long
Beach?
These cities operate more than one utility in a “one director” organization model like Palo
Alto. In contrast, some cities that operate more than one utility have separate directors for
each utility and individual departments. Keep in mind that the Palo Alto positions have
been placed at the median of the 14 benchmark cities.
3. Why are utility cities needed as comparable data for any position other than Utility
Director?
See Answer #1, above.
4. Are City salaries higher than private sector?
According to the Bureau of Labor Statistics, the average wage for private sector
management occupations in the Bay Area is $142,570, 24% higher than the average wage
for the City of Palo Alto Management and Professional group. This data is from the Bureau
of Labor Statistics report “Private Industries Annual Mean Wage, May 2012.”
5. How many employees are hired from the private sector and how many leave Palo Alto to
work in the private sector?
In FY 2013 to date, 10% of filled jobs in the management and professional group have been
recruited from private employers (3 out of 29). It is more difficult to draw conclusions
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about employees exiting the City, because circumstances vary (some leave the workforce
for family reasons, some move away from California, and others choose not to reveal their
next employer). In FY 2013 to date Human Resources has been conducting exit interviews,
which reveal there were five voluntary exits and seven retirements; all voluntary exits
continue to work in California in public sector positions. This suggests that Palo Alto needs
to be mindful of remaining competitive with other area cities.
6. Why is the salary range changing?
The overall structure is not changing; although the width of the range decreased in 2012
from 25% below Control Point to 20% below Control Point. The current salary structure
provides for ability to hire a new employee 20% below control point (will now be defined as
midpoint) and up to 20% above mid-point based on City Manager approval. Some
classification ranges are moving up or down based on market findings and internal factors
justifying alignments.
7. What relation does the $310,000 have to the City total compensation?
$310,000 has been allocated in the General Fund and carried over since FY 2007 to
implement market salary adjustments as a result of this compensation study. The study
completion has been delayed due to consultant changes, employee review and appeals,
methodology change to total compensation comparison, and Human Resources staffing
turnover. $310,000 equates to 1.26% of the City’s General Fund total compensation cost
for Management and Professional positions. In addition, approximately $122, 000 or
1.08% of non-utility enterprise compensation will be allocated for salary adjustments
within non-Utilities Department Enterprise Funds.
8. How many classifications will move up or down when this study is implemented?
The ranges for 43 classifications will move up (38 due to being under market, five due to
internal equity factors justifying alignments). Most of the range movement is small in
magnitude, 5% or under. The ranges for 53 classifications are over market and will move
down, again most of them at a magnitude of 5% or less. See Attachment C. The remainder
of classifications had no change. Further analysis is shown below:
City of Palo Alto Page 5
Magnitude of salary range movement
higher
Number of classifications
20% + 1
15-20% 2
10-15% 5
5-10% 10
0-5% 25
Magnitude of salary range movement
lower
Number of classifications
20% + 1
15-20% 2
10-15% 12
5-10% 15
0-5% 24
Salary Range Adjustment
9. How many employees will be Y-rated?
If an individual employee earns a salary that is above the top of the new approved range,
that employee is said to be “Y-rated.” A Y-rated employee is not eligible for a salary
increase until such time the top of the range increases. Only one employee will be Y -rated
if the proposed salary ranges are approved.
10. Was total compensation used in the study or just salary?
Comparisons were based on the total compensation of the City classification with median
total compensation of the comparison cities, and the delta was then applied to the City
salary. As an example, take a fictional Manager position that had a previous Control Point
of $100,000 and a total compensation of $145,000. Suppose that the study found this
position to be under market by 5% total compensation compared to the median of
benchmark cities. That 5% would then be applied to the position ’s Control Point (now Mid-
Point) to get a new midpoint of $105,000.
Ms. Katie Kaneko from Koff and Associates and staff will be presenting the information to the
Finance Committee in discussion format at the Finance Committee meeting on May 23.
Attachments:
ATTACHMENT A May 6, 2013 CMR (PDF)
ATTACHMENT B Budget Salary Table (PDF)
ATTACHMENT C List of Benchmarked Total Compensation Data Collected (PDF)
City of Palo Alto Page 6
ATTACHMENT D Salary Schedule With In Order Showing Increases & Decreases From
Current (PDF)
City of Palo Alto (ID # 3600)
City Council Staff Report
Report Type: Action Items Meeting Date: 5/6/2013
City of Palo Alto Page 1
Summary Title: 2013 Management and Professional Compensation Plan
Title: Request Council Adopt Resolution Amending the 2013 Management
and Professional Compensation Plan
From: City Manager
Lead Department: Human Resources
Recommendation
Staff recommends that the Council adopt the attached resolutions amending the 2011 -2013
Compensation Plan for Management and Professional Personnel and Council Appointees to
implement the 2013 Salary Study, extend the term and make other changes required by law,
effective the pay period beginning May 18, 2013, and amending the Merit Rules to incorporate
these changes.
Motion
I move that Council:
(a) adopt a resolution amending the 2011-2013 Compensation Plan for Management and
Professional Personnel and Council Appointees to implement the 2013 Salary Study,
extend the term and make other changes required by law, effective the pay period
beginning May 18, 2013, and
(b) Adopt a resolution amending the Merit Rules to incorporate these changes.
Executive Summary
The City of Palo Alto seeks to attract and engage employees with the expertise and experience
we need, who are passionate about their work for the City and feel valued for it. To attract and
retain skilled staff, the City should adopt a total compensation plan that brings current salary
City of Palo Alto Page 2
ranges and benefits to the market median of our benchmark cities. Staff has formulated a new
salary structure for management and professional staff based on market research (the 2013
Salary Study). The proposed salary structure establishes a mid-point for each job classification.
The minimum salary for any position in that classification is 20% below the mid -point and the
maximum salary is 20% above the mid-point. The City Manager (or other CAO within their
office) determines an individual employee’s actual salary within the range based on experience,
performance, and merit.
Beginning FY 2014, budgeting for Management and Professional positions will change.
Currently, Management and Professional positions are budgeted at the mid -point of the range
(formerly called the control point). Beginning this year, the budget will reflect the actual
salaries of all employees.
The proposed salary structure does not include police, fire or utility managers, as they are
represented classifications, except that the following unrepresented classifications in the
Management and Professional group are included in the new structure: Public Safety Director,
Chief of Police, Assistant Chief of Police, Fire Chief, Assistant Fire Chief, Deputy Fire Chief, and
Director of Utilities.)
Background
Staff proposes that Palo Alto implement the 2013 Salary Study in order to offer competitive pay
and benefits at the median of the current market, as determined by 14 benchmark cities.
Subject to financial considerations, staff proposes that it be the City’s goal to compensate
Management and Professional employees according to the level of expertise, scope of work
performed, and managerial accountability of each job, as reflected by the market. Additional
goals include promoting internal equity across departments and providing that employees
move up the salary range based on merit and performance.
To implement these goals, the staff periodically reviews market compensation for
management, and professional staff. Human Resource staff subscribes to the Bay Area
Employer Research Service (ERS), which contains market data for a comprehensive list of jobs in
the Bay Area. A more individualized study (the 2013 Salary Study), conducted by Koff &
Associates (“Koff”), is the basis for staff’s request to update the Management and Professional
Compensation Plan. The study is described as follows.
Benchmarking positions. Koff collected data for 82 classifications out of 114 total classifications
that make up the Management and Professional group. For each of the 82 “benchmarked”
City of Palo Alto Page 3
classifications, Koff analyzed job descriptions to identify matches with similar classifications in
comparator public agencies. Koff’s methodology required a 70% degree of similarity between
Palo Alto and comparator city job descriptions for a job to be a benchmark “match.” The
factors analyzed include education, experience and skills required; work scope and complexity;
decision-making authority; responsibility for the work of others, programs a nd budget; problem
solving and ingenuity; relationships inside and outside of the City; consequences of action and
decisions; and working conditions.
Benchmark Cities. Koff reviewed the cities that Palo Alto used in the past to determine the
appropriate agencies for comparison, adding to the list those cities suggested by the Executive
Leadership Team (ELT) and the Management Compensation Committee, which is a group of
representatives from each City department. Koff considered the following factors in m aking
the choices:
Cities of a similar size, budget, and population as Palo Alto
Cities surrounding Palo Alto that compete for labor within the geographic vicinity
Scope of services provided, including police, fire, parks, arts and utilities. In order to
find comparisons for the positions in Utilities, Koff added the following cities outside of
the immediate geographic labor market area that have one or more utilities: Anaheim,
Burbank, Long Beach, and Roseville.
Thus, fourteen (14) cities are benchmarks, as presented below.
Alameda Anaheim Berkeley
Burbank Fremont Hayward
Long Beach Mountain View Redwood City
Roseville San Jose San Mateo
Santa Clara Sunnyvale
Benefits. Koff collected information about health and pension benefits for each compara tor
city utilizing a formula to determine an average value that comparable agencies pay for the
health and pension benefits.
Methodology. In collecting salary and benefit data, Koff conducted reviews of comparator city
documentation, including classification descriptions, memoranda of understanding, pay
practices, organization charts, and other documents, then conducted interviews with human
resources, accounting, and/or finance personnel at each comparator agency to understand
their organizational structure and classification matches. Koff collected data between 2009 and
2012.
City of Palo Alto Page 4
Discussion
Survey Results. Koff analyzed market salary and health (including retiree medical) and pension
benefits for each classification surveyed to find the percentile diffe rence between Palo Alto’s
salary and benefits against the median total compensation (salary and benefits) of the
comparator cities. (See Attachment C) Considering the Management and Professional group as
a whole, Koff found that Palo Alto’s total compensation is generally at or above market median.
Palo Alto’s benefit package value is greater (about 10%) than that of the comparator group
taken as a whole. Since total compensation is the relevant comparison, the City of Palo Alto’s
generally higher benefits offset somewhat lower salaries in some comparisons.
More specifically, the 2013 Salary Study showed that many classifications have a total
compensation mid-point that is at or near the market median. Some classifications job
classifications have a mid-point that is over market compared to the benchmark cities. Other
classifications have a mid-point that is under market. The largest cluster of under-market
classifications are in Utilities. There are under-market positions though scattered throughout
the Management and Professional group. Note that the utility managers (below the
Department Director) are not included in the Management and Professional Salary Schedule, as
they are currently represented by Utility Management Professional Association of Palo Alto
(UMPAPA).
Internal Salary Relationships. Internal relationships are another factor to consider when making
salary decisions. Compensation of classifications within a job family should be reasonably
related. Related jobs in different departments should be compensated in a manner that makes
sense. The proposed new structure was established by slotting job classifications that were not
benchmarked into the salary scale to maintain internal relationships with benchmarked jobs
above and below. The City follows common professional guidelines for percentages applied to
the difference between job levels:
10% to 15% difference from a trainee to experienced classification and from a lead or
advanced journey-level position to the lower experienced level
15% to 25% from supervisor to the highest level supervised, depending upon the
breadth and scope of supervision.
Market adjustments granted to one class in a series normally include other classes in the
series being adjusted to maintain internal equit y.
In addition, Department Directors were invited to review and consider the organizational value
of each classification’s body of work. As a result, some key placements for salary
City of Palo Alto Page 5
recommendations were updated to reflect departmental recommendations base d on both
market results and organizational value.
New Ranges. Staff proposes to implement the new salary structure by adjusting the mid -point
of all classifications in the Management and Professional group to bring the mid -point of the
range to the market median, adjusted as described above.
Individual Employee Salaries When Classification is Under Market. Staff proposes to adjust the
mid-point of classifications found to be under market higher in the new Salary Schedule, to
bring the mid-point of the range to market median. With Council approval, the City will adjust
individual employees’ salaries by moving employees who are at or below the mid -point of the
current range to the same relative place at or below mid -point of the new range, provided the
employees are meeting or exceeding performance expectations.
Individual Employee Salaries When Classification is Over Market. Staff proposes to adjust the
mid-point of classifications found to be over market – but not individual employee salaries –
lower in the new Salary Schedule to bring the mid-point of the range to the market median.
Pay will not be reduced for employees in the downward-adjusted classifications; however these
employees may find their salary is over the mid-point of the new range. In some cases, the
current salary will exceed the maximum of the new range. Staff proposes to “Y -rate” the
salaries of employees whose salary is above the maximum. “Y-rate” means the employee does
not immediately lose income, but will not be eligible for merit increases and general increases
until the incumbent’s salary is within its market salary range.
Proposed Monthly Salary Schedule
The compensation for management and professional employees will fall within a range of 20%
below and 20% above the mid-point. The Department Director and the Chief People Officer will
approve limited movement over mid-point. The City Manager (or other CAO) retains discretion
to approve salaries over 10% above mid-point.
The City will adjust management and professional salaries to align with the new salary ranges
upon adoption of the new salary schedule. There are funds designated in the fiscal year 2013
General Fund budget to provide salary adjustments to market. The Public Works Enterprise
Funds and Other Funds will have sufficient funds to cover the adjustments as a result of
vacancy savings.
In FY 2014 and future budgets, staff proposes to allocate funds that allow for base salary
increases. The proposed FY 2014 budget includes a recommended 2% increase to all
classifications in the Management and Professional Compensation Plan . Attached is Attachment
City of Palo Alto Page 6
D, the proposed 2013 Management & Professional Compensation Plan with the attached Salary
Schedule.
Resource Impact
The fiscal year 2013 budget includes $310,000 in the General Fund or this purpose to fund the
recommended adjustments. The Public Works Enterprise Funds and Other Funds will have
sufficient funds to cover the adjustments as a result of vacancy savings.
Attachments:
Attachment A RESO Amending Merit System Rules-Regulations Mgmt (PDF)
Attachment B RESO Amending Comp Plan for Mgmt Professional (PDF)
Attachment C Information Collected for Compensation Study (PDF)
Attachment D Management Professional & Confidential Comp Plan (PDF)
Attachment A
* NOT YET APPROVED *
130501 sh 0140089 1
Resolution No. ____
Resolution of the Council of the City of Palo Alto Amending Section 1701
of the Merit System Rules and Regulations to Incorporate the 2011‐
2013 Compensation Plan for Management and Professional Personnel
and Council Appointees
The Council of the City of Palo Alto RESOLVES as follows:
SECTION 1. Section 1701 of the Merit System Rules and Regulations is hereby
amended to read as follows:
“1701. Compensation Plan for Management and Professional
Personnel and Council Appointees incorporated by reference. The
currently applicable Compensation Plan entitled “City of Palo Alto
Compensation Plan‐‐Management and Professional Personnel and
Council Appointees,” is hereby incorporated into these Merit System
Rules and Regulations by reference as though fully set forth herein. Said
Compensation Plan shall apply to all Management and Professional
employees and Council Appointees, except where specifically provided
otherwise herein.
In the case of conflict with this chapter and any other provisions of the
Merit System Rules and Regulations, this chapter will prevail over such
other provisions as to employees in classifications covered by said
Compensation Plan.”
SECTION 2. The changes to the Merit System Rules and Regulations provided
for in this resolution shall not affect any right established or accrued, or any offense or act
committed, or any penalty of forfeiture incurred, or any prosecution, suit, or proceeding
pending or any judgment rendered prior to the effective date of this resolution.
//
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//
//
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Attachment A
* NOT YET APPROVED *
110322 sh 8261553 2
SECTION 3. 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:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
__________________________ _____________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
__________________________ _____________________________
City Attorney City Manager
_____________________________
Chief People Officer
_____________________________
Director of Administrative Services
Attachment B
*NOT YET APPROVED*
130501 sh 0140088 1
Resolution No. ____
Resolution of the Council of the City of Palo Alto Amending the 2011‐
2013 Compensation Plan for Management and Professional Personnel
Adopted by Resolution No. 9282 to Implement the 2013 Salary Study,
Extend the Term and Make Other Changes Required by Law
The Council of the City of Palo Alto RESOLVES as follows:
SECTION 1. Pursuant to the provisions of Section 12 of Article III of the
Charter of the City of Palo Alto, the 2011‐2013 Compensation Plan for Management and
Professional Personnel, adopted by Resolution No. 9282 is hereby amended to implement the
2013 Salary Study, extend the term and make other changes required by law, as set forth in
Exhibit “A”, attached hereto and incorporated herein by reference, effective with the pay
period including May 18, 2013.
SECTION 2. The Director of Administrative Services is authorized to
implement the amended Compensation Plan as set forth in Section 1.
SECTION 3. 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:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
___________________________ ______________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
___________________________ ______________________________
City Attorney City Manager
_____________________________
Director of Administrative Services
____________________________
Chief People Officer
Attachment B
*NOT YET APPROVED*
130501 sh 0140088 2
CITY OF PALO ALTO
COMPENSATION PLAN
Management and Professional Personnel
And Council Appointees
Effective: Pay period includingCompensation plan effective July 1, 2012 through
June 30, 2013 2014,
except where specifically noted.
2
1
COMPENSATION PLAN FOR THE CITY OF PALO ALTO
Management and Professional Personnel
As used in this Plan, the term “Management and Professional” refers to all employees, including
Confidential employees, previously classified as “Management and Confidential” by the City. This
group will hereafter be identified as “Management and Professional” personnel.
SECTION I. COMPENSATION
This section applies to all management and professional employees and does not include Council
Members or 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 PROFESSIONAL COMPENSATION POLICY
The City's policy for management and professional 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 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
1. 1. Structure. The compensation plan includes separate multi-grade structures for both
management and professional employees. Each grade will have a salary range with a mid-
point which is 20% above the minimum, and 20% below the maximum of the range.control
pointmid-point which is used for budgetary purposes. All management and professional
positions will be assigned an appropriate pay grade based on salary survey data and internal
relationships. Actual salary within the range is determined by experience and performance.
The normal working range where most actual salaries will fall will be within + 10% of the
control pointmid-point.
Competitive marketplace studies will be conducted as needed by surveying a maximum of
14 organizations similar to Palo Alto in number of employees, funding mechanisms,
population and services provided. These studies will focus on total compensation for
management positions such as first line supervisors, administrative, confidential,
professional and top management. Periodically, studies will include position-by-position
comparisons using market research and internal equity data. The results of these studies may
indicate that the entire pay grade structure be adjusted, that individual positions be
reassigned to different pay grades, or that no change takes place. Such adjustments will only
affect the salary administration framework. No individual salaries will be automatically
changed because of structural adjustments.
Formatted: Indent: Left: 0.5"
2
A department director may request that HR reevaluate a job or jobs in his or her department
based on significant and permanent changes in job content. In doing so the director will
supply needed information and will provide a position description questionnaire as
requested. The Chief People Officer will respond to such requests within his or her
discretion.
2. 2. Compensation Adjustment Authorization. In consultation with feedback received from
the Management and Professional Compensation Committee, the City Manager may propose as
part of the budget process for Council approval of a compensation adjustment based on (1)
competitive market data, (2) changes in internal position relationships, (3) the City's ability to
pay, and (4) a recommendation received from the Chief People Officer. For fiscal year 2013 the
compensation adjustment to control pointmid-point shall be three percent (3%) effective the pay
period including October 6, 2012. In addition, certain below-market positions will be subject to
equity adjustments at a future date based on Management Compensation Study results and
subject to Council approval.
In years when there is an adjustment to control mid-point, this adjustment will be available
for those management/professional employees who have received an overall rating of
"meets" or "exceeds" expectations on their annual review and who have not been on a
performance improvement plan during the preceding fiscal year. Nothing herein shall
preclude an employee's manager from awarding a control pointmid-point adjustment
increase to an employee on a performance plan at a later date should employee's
performance improve.
3.1.Base Compensation. Compensation for management and professional employees includes
bi-weekly base salary and is paid on a continuing basis. On a fiscal year basis, the bi-weekly
base salary must fall within pay grade limits of no less than 20% below the control
pointmid-point and no more than 20% above the control pointmid-point.
Base salary increases are earned in accordance with administrative guidelines based upon
growth within the position and performance, which must meet or exceed position standards,
the salary structure and the City’s ability to pay.
4.2.Performance Planning and Appraisal. Performance appraisals will be conducted at the end of
each fiscal year during the months of July through September 30 each year prior to
determining individual employee fixed 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. The performance appraisals should be implemented in a manner
that will achieve the following objectives:
Define the employee’s job duties and expected level of performance for the next
review period to ensure that both the employee and supervisor have a clear
understanding of the employee’s role and responsibilities;
Formatted: Indent: Left: 0.25", No bullets or
numbering
3
Evaluate and document past performance to serve as a basis for establishing and
obtaining future performance standards/objectives;
Facilitate two-way communication and understanding between the employee and his
or her supervisor;
Counsel and encourage employees to work toward a learning development plan and
realize their full potential;
Establish future work plan objectives.
Work plans should include job related projects or special goals related to regular job duties
when applicable. At the conclusion of the fiscal year (or review period), supervisors shall
make a final determination of the overall performance rating.
Recommendations shall be forwarded to department heads and to the Chief People Officer
or appropriate Council appointed officer who will then determine individual fixed
adjustments according to the provisions of the compensation plan. This process should be
completed by September 30.
C. MANAGEMENT AND PROFESSIONAL COMPENSATION ADJUSTMENT
AUTHORIZATION
1. Council-appointed officers are authorized to pay salaries in accordance with this plan to
non-Council-appointed management and professional employees in an amount not to exceed
the aggregate of approved management and professional positions budgeted at the control
points in the Table of Organization for the applicable fiscal year.
2. Individual management and professional compensation authorized by a Council-appointed
officer under the Management and Professional Compensation Plan may not be less than
20% below nor more than 20% above the control pointmid-point for the individual position
grades authorized in Table I of this plan.Salary Schedule attached.
3. The Council-appointed officers are authorized to establish such administrative rules as are
necessary to implement the Management and Professional Salary Plan subject to the
limitations of the approved compensation adjustment authorization and the approved grade
and control pointmid-point structure.
4. Notwithstanding any other provision of this Compensation Plan, In 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 professional positions including Council
Appointed Officers as applicable and including Council Members where 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.
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A. OVERTIME
Compensation for overtime work shall be in conformance with the Merit Rules and Regulations
and Policies and Procedures.
B. IN LIEU HOLIDAY PAY
Employees who work a schedule where a regular day off falls on a holiday will be paid for the
hours they would have normally worked on that day. If the holiday falls on a non-workday for
an exempt employee, the employee may, with supervisory approval, take another day off within
the pay period or the following pay period.
C. WORKING OUT OF CLASSIFICATION PAY
Where management and professional employees, on a temporary basis, are assigned to perform
all significant duties of a higher classification, the City Manager may authorize payment within
the range of the higher classification for the specified time frame. Working out of class pay is
normally not to exceed 10% more than the employee’s current salary and shall be documented
on a Personnel Action Form, with a description of the additional duties to be performed and an
end date.
D. STAND-BY PAY
Employees eligible for overtime may be entitled to stand-by pay, approved by the City Manager
on a case by case basis, in extreme circumstances involving unavailability of non-management
staff. Compensation is as follows:
Monday through Friday $40 per day
Saturday, Sunday, Holidays $58 per day
E. CALL OUT PAY
Effective pay period beginning February 26, 2011, Exempt management and professional
classifications will be compensated for Call Out as outlined below with Management approval
(and will not be eligible for overtime pay). Call Out applies when: (1) an employee previously
left City premises, (2) is called back to the work location outside of regularly scheduled working
hours, and (3) the Call Back is for an emergency arising out of situations involving real or
potential loss of service, property or personal danger. Employees called back will be expected to
respond directly to the location of the problem.
Compensation is per Call Out as reported on timecard and will be paid as follows:
Monday through Friday: $140 per day
Saturday and Sunday: $200 per day
F. NIGHT SHIFT PREMIUM
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Night shift differential shall be paid at the rate of five percent (5%) to regular full-time
employees who are regularly assigned to shift work between 6:00 p.m. and 8:00 a.m., or to
employees who are temporarily assigned to work a full shift between 6:00 p.m. and 8:00 a.m.
G. UNIFORM PURCHASE PLAN - SWORN POLICE, FIRE PERSONNEL, and OPEN
SPACE PERSONNEL
Uniforms, including cleaning, will be provided with replacement provisions on an as-needed
basis in conformance with department policy.
H. GROUP INSURANCE
1. Effective Date of Coverage for New Employees
For newly-hired regular employees coverage begins on the first day of the month following
date of hire for the health plan, dental plan, vision care plan, long term disability and life
insurance plans if these benefits are elected.
2. Active Employee Health Plan
a) Based on an employee’s family status, the City shall pay up to the monthly medical
premium for the second most expensive plan among the existing array of plans available
during the term of this compensation plan on behalf of eligible employees (including
Council Appointed Officers and Council Members) and dependents, except as provided
in section b, below. Eligible dependents, under current law, include spouses, children
under the age of 26 and never married (natural, adopted, or stepchildren), economically
dependent children, and domestic partners registered with the Secretary of State. If
PERS changes the plans it offers, the City will continue to provide an equivalent benefit
at an equivalent cost.
b) Effective in the pay period including October 6, 2012, participating employees will
contribute 10% of the premium cost for the employee-selected plan, and the City shall
contribute 90%, with a maximum City contribution of 90% of the second highest plan. .
c) City medical premium contributions will be prorated for part-time employees based on
the number of hours per week the part-time employee is assigned to work.
d) Coverage for Domestic Partners:
1) Domestic Partnership Registered with the California Secretary of State: Employees
may add their domestic partner as a dependent to their elected health plan coverage if
the domestic partnership is registered with the Secretary of State.
2) Domestic Partnership Not Registered with the California Secretary of State:
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
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individual health plan, not to exceed the maximum monthly City employer
contribution for one-party coverage under the CalPERS Health Benefits Program (or
PORAC if a safety department employee) for an employee covered under this
agreement. Evidence of premium payment will be required with request for
reimbursement.
e) PERS Choice Reimbursement Plan
Will be eliminated effective January 1, 2013. Management and Professional
personnel enrolled in the PERS Choice medical plan may submit a request for
payment, as specified below, for non-covered medical expenses, incurred during the
period of January 1, through December 31, of the plan year, that exceed $2,500. The
maximum annual reimbursement amount provided under this program is:
$700 for employees enrolled in the Employee-Only category;
$900 for employees enrolled in the Employee and One Dependent
category, and
$1,100 for employees enrolled in the Family category.
Any amounts reimbursed to an individual under this program would be
included in the employee’s gross income and is not PERSable.
This program shall only reimburse employees for medical expenses that are not
reimbursed through any other means and meet the definition in Section 213(d) of the
Internal Revenue Code. (Examples of eligible expenses include medical plan
deductibles and co-payments, prescription drugs, dental care, hearing care, and
vision care.) However, in order to have any expenses reimbursed under this
program, the employee must have allocated 100% ($2,500.00) of their 2010 calendar
Excess Benefit funds into the Medical FSA option during the election that occurred
in December 2009. In addition, all such reimbursements from the Excess Benefit
Program must have been solely for medical expenses, as defined by Section 213(d)
of the Internal Revenue Code. If the employee has designated his/her Excess
Medical funds for any other qualifying expenses (i.e. dependent care, Professional
Development, Deferred Compensation contributions), the employee would not be
eligible for reimbursement under this program.
Employees may submit a final claim for the 2012 plan year’s expenses during January.
Any amounts remaining from the PERS Choice reimbursement plan after the claims for
the plan year had been processed shall be forfeited.
3. Alternative Medical Benefit Program
If a regular employee and/or the employee’s dependent(s) are eligible for medical insurance
through another employer-sponsored or association medical plan, the employee may opt for
alternative medical insurance coverage through the other employer-sponsored or association
plan and waives his/her right to the City of Palo Alto’s medical insurance coverage for same
individuals. Employees electing alternative coverage and no City coverage will receive cash
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payments in the amount of 90% of the average monthly premium for one party, which is
$284.00.
4. Retiree Health Plan
a) Employees Hired Prior to January 1, 2004
Monthly City-paid premium contributions for a retiree-selected health plan through the
CalPERS Health Benefits Program will be made as provided under the Public
Employees” Medical and Hospital Care Act. The City’s monthly employer contribution
for each employee retiring on or after January 1, 2007 and prior to March 31, 2011 shall
be the amount necessary to pay for the cost of his or her enrollment in a health benefits
plan up to the monthly premium for the second most expensive plan offered to
management and professional personnel during the contract term (among the existing
array of plans.) The City’s contribution for an employee hired before January 1, 2004
who retires on or after March 30, 2011 shall be the same contribution amount it makes
from time to time for active City employees.
b) Post – 1/1/04 Hires
For those Management and professional employees hired after January 1, 2004, the
PERS law vesting schedule set forth in Government Code section 22893 will apply.
Under that law, an employee is eligible for 50% of the specified employer health
premium contribution after ten (10) years of service credit, provided at least five (5) of
those years were performed at the City of Palo Alto. After ten (10) years of service
credit, each additional service credit year increases 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 – 1/1/04 hires shall be
the minimum contribution set by PERS under section 22893 based on a weighted
average of available health plan premiums.
5. Dental Plan
a) The City shall pay covered plan charges on behalf of all eligible employees and
dependents. (Domestic partners who are either registered with the Secretary of State or
who meet the requirements of the City of Palo Alto Declaration of Domestic Partnership,
and are registered with the Human Resources Department are considered dependents
under the plan.) Benefits for regular part-time employees hired or assigned to a part-time
schedule will be prorated in accordance with his/her percentage of a full- time work
schedule.
b) The City’s Dental Plan provides the following:
Maximum Benefits per Calendar Year- $2,000 per person
Lifetime Maximum for Orthodontics- The City will pay up to $2,000.00 for
orthodontia coverage (not included in annual dental maximum)
Major Dental Services 50% UCR*
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Orthodontics 50% UCR*
Basic Benefits (All other covered services)
First Calendar Year of Eligibility 70% UCR*
Subsequent Calendar Years 70%-100%
*Usual, Customary, and Reasonable
Composite (tooth covered) fillings for posterior teeth
For each dental plan member, the percentage of coverage for basic benefits will begin at
70% for the first calendar year of coverage and increase by 10% (up to a maximum of
100%) effective the first day of the next calendar year as long as the member utilizes the
plan at least once during the current year. Per the Delta Dental contract effective October
1, 2005, if the member does not utilize the plan during the current year, the percentage of
coverage for the next calendar year shall remain unchanged from the current year.
If a dental plan member ever loses coverage under the plan, the applicable percentage of
coverage for basic benefits provided during any future period of coverage will
commence at 70% as if the dental plan member was a new enrollee. Examples of when a
member might lose coverage under the plan would include:
Employee goes on an unpaid leave of absence and elects not to pay the required
dental premiums for his/her family’s coverage during the leave.
Employee elects to drop one or more covered dependents from the plan during an
open enrollment period so that they might be covered on a spouse’s non-City of
Palo Alto dental plan.
6. Basic Life Insurance
The City shall provide a basic group term life insurance with Accidental Death and
Dismemberment (AD&D) coverage, in an amount equal to the employee's annual basic pay
(rounded to the next highest $1,000) at no-cost to the employee. AD&D pays an additional
amount equal to the employee’s annual basic pay (rounded to the next highest $1,000).
7. Supplemental Life And AD&D Insurance
An employee may, at his/her cost, purchase additional life insurance and additional AD&D
coverage equal to one- or two-times his or her annual salary. The maximum amount of life
insurance available to the employee is up to $325,000 and the maximum amount of AD&D
coverage available is up to $325,000.
8. Long Term Disability Insurance
a) The City shall provide long term disability (LTD) insurance with a benefit of 2/3
monthly salary, up to a maximum benefit of $10,000 per month. The City shall pay the
premium for the first $6,000 of base monthly salary. For employees whose base monthly
salary exceeds $6,000, the employee shall pay the cost of the required premium based
upon their monthly salary between $6,000 and $15,000.
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b) For employees whose base monthly salary exceeds $6,000 and who have no eligible
dependents covered under the City’s medical, dental or vision plans, the City will pay up
to $17.50 per month towards the employee’s cost for LTD coverage.
9. Vision Care
a) The City shall provide vision care coverage for employee and dependents. Coverage is
administered by Vision Service Plan (VSP). The plan provides an exam every 12
months; lenses every 24 months; frames every 24 months, all subject to a $20 co-
payment as defined in the Vision Services Benefits Plan A schedule. Benefits for regular
part-time employees will be prorated as follows:
Employees hired after January 1, 2004, who will work less than full time, will receive
prorated premium costs for vision benefits in accordance with his/her percentage of a
full-time work schedule. Vision benefits for regular part-time employees hired or
assigned to a part-time schedule will be prorated in accordance with his/her percentage
of a full- time work schedule.
b) Effective July 1, 1996, dependents include eligible domestic partners who are either
registered with the Secretary of State or who meet the requirements of the City of Palo
Alto Declaration of Domestic Partnership, and are registered with the Human Resources
Department.
I. EMPLOYEE ASSISTANCE PLAN
The Employee Assistance Plan (EAP) provides employees with confidential personal
counseling, work and family related issues, eldercare, substance abuse, etc. In addition, EAP
programs provide a valuable tool for supervisors to refer troubled employees to professional
outside help. This service staffed by experienced clinicians is available to employees and their
dependents by calling a toll-free phone line 24 hours a day, seven days a week. Guidance is also
available online.
J. SAFETY DIFFERENTIALS
1. Police Department - Personnel Development Program
Pursuant to administrative rules governing eligibility and qualification, the following may be
granted to sworn police personnel:
P.O.S.T. Intermediate Certificate: five percent (5%) above base salary
P.O.S.T. Advanced Certificate: seven and a half (7 ½%) above base salary
2. Fire Department - EMT Differential
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Pursuant to administrative rules governing eligibility and qualification, the following may be
granted to sworn Fire personnel:
EMT Differential: three percent (3%) above base salary
K. MANAGEMENT and PROFESSIONAL BENEFIT PROGRAM
Management and professional employees are eligible for Sections 1, 2, 3, and 4 of the
Management Benefit Program. City Council Members are eligible for Section 3 only.
1. Professional Development - Reimbursement
The purpose of this program is to provide employees with resources to improve and
supplement their job and professional skills. Reimbursement for authorized self-
improvement activities may be granted each management and professional employee up to a
maximum of five hundred dollars ($500) per fiscal year. A departmental training fund of
one thousand dollars per employee ($1,000) will be established for subject matter,
leadership or other training that the Department Director identifies as a need for employees
within that Department.
The following items are eligible for reimbursement:
a) Civic and professional association memberships
b) Conference participation and travel expenses, which must occur within the
compensation plan period.
c) Educational programs, books and videos, and tuition reimbursement designed to
maintain or improve the employee's skills in performing his or her job or future job
opportunities, should support the City’s mission or be necessary to meet the
educational requirements for qualification for employment. Permissible educational
expenses are refresher courses, courses dealing with current developments, academic
or vocational courses, as well as the travel expenses associated with the courses as
defined by the City’s travel expense report from the Policy & Procedures Manual
Section 1-02 ASD.
d) Professional and trade journal subscriptions not to exceed 12 months.
e) Approval will be at discretion of department head and signature is required on
reimbursement form.
Amounts under this professional development program will be pro-rated in the first
year of employment or promotion into a position covered by this Compensation Plan
2. Physical Examinations
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All management and professional employees are eligible to receive an annual physical
examination as follows:
a) Use the periodic health exam benefit as provided under the PERS Health Plan option
you have selected. Each of the PERS Health Plans provides for a periodic physical
examination. The examination must be performed by your primary care physician—
unless he/she refers you to another physician.
b) The types of tests and the frequency of the tests cannot exceed AMA guidelines. The
guidelines are a suggested minimum based on research studies concerning
preventative care. The judgment of your physician is the final determinant for your
care.
c) Any additional necessary asymptomatic tests that are required by your physician that
are not covered by your health plan, will be reimbursed by the City. Any
symptomatic tests will be covered under your PERS Health Plan.
The Reimbursement for Periodic Physical Exam Form is available on the Human Resources
Intranet site. This benefit will not be pro-rated.
3. Excess Benefit
This benefit is designed to meet the requirements of Section 125 of the Internal Revenue
Code, with exception of Gym or Health Club Membership. Every calendar year, each
employee will be provided with $2,500 that they can designate among the following options:
a) Medical Flexible Spending Account (Medical FSA). Provides reimbursement for
excess medical/dental/vision, or expenses that are incurred by employees and their
dependents which are not covered or reimbursed by any other source, including
existing City-sponsored plans. This includes prescribed medications and copayments
as well as over-the-counter drugs, including: antacids, allergy medicines, pain
relievers and cold medicines. However, nonprescription dietary supplements (e.g.
vitamins, etc.) toiletries (e.g. toothpaste), cosmetics (e.g. face cream), and items used
for cosmetic purposes (e.g. Rogaine) are not acceptable.
b) Dependent Care Flexible Spending Account (Dependent Care FSA). Provides
reimbursement for qualified 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.
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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
(6) 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.
c) Non-taxable Professional Development Spending Account. Provides reimbursement
for Non-Taxable professional development expenses (e.g.,job-related training and
education, seminars, training manuals, etc.) to the extent they are not paid or
reimbursed under any other plan of the City.
d) Gym or Health Club memberships. Provides reimbursement for annual or monthly
memberships, including personal trainers. Reimbursement of this expense is taxable
to the employee.
e) Deferred Compensation. Provides a one-time contribution to the employee’s City-
sponsored 457 Deferred Compensation plan with either ICMA-RC or the Hartford.
Amounts designated by employees to either the Medical FSA, Dependent Care FSA, or
Professional Development options are done so on a “use –it-or-lose-it” basis. This means
that any amounts designated and not used by the end of the calendar year (or end of the
extended grace period for the medical FSA) will be forfeited by the employee and returned
to the plan.
Specified amounts under this benefit will be applied on a pro-rata basis for employees who
are part-time or who are in a management or professional pay status for less than the full
fiscal year. Such benefits will be pro-rated in the first year of employment (based on hire
date) but will not be pro-rated upon separation of employment.
L. LEAVES
1. Sick Leave
a) Sick leave shall be accrued bi-weekly provided the employee has been in a pay status
for 50% or more of a bi-weekly pay period. Sick leave shall be accrued at the rate of
3.7 hours per bi-weekly pay period for those employees working a 40-hour duty
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schedule. Those assigned work schedules which are greater or lesser than 40 hours
will accrue sick leave at the ratio of their work schedule to 40 hours.
b) Employees may use up to 20 hours of sick leave per calendar year for personal
business. The scheduling of such leave is subject to the approval of the appropriate
level of Management.
c) Employees leaving the municipal service shall forfeit all accumulated sick leave,
except as otherwise provided by law and by Section 609 of the Merit Rules and
Regulations. In the event that notice of resignation is given, sick leave may be used
only through the day which was designated as the final day of work by such notice.
d) Employees that were hired before December 1, 1983 and who leave the municipal
service in good standing, or who die while employed in good standing by the city,
and who have 15 or more years of continuous service shall receive compensation for
unused sick leave hours in a sum equal to two and one-half percent (2½%) of their
unused sick leave hours multiplied by their years of continuous service and their
basic hourly rate of pay at termination. Full sick leave accrual will be paid in the
event of termination due to disability. See Merit System Rules and Regulations,
Chapter 6, Section 609.
e) Up to nine (9) days of sick leave per calendar year may be used for illness in the
immediate family, including a registered domestic partner.
f) Management and Professional employees eligible, as specified above if hired before
December 1, 1983, to be compensated for sick leave may annually convert sick leave
hours in excess of 600 to cash or deferred compensation, according to the formula set
forth above, up to a maximum of $2,000 per fiscal year.
g) In accordance with the City Merit Rules and Regulations, a new employee may, if
necessary, use up to 48 hours or shift equivalent of sick leave at any time during the
first six (6) months of employment.
2. Management Annual Leave
a) Exempt Employees
Regular management and professional employees will be credited with 80 hours of
annual leave. This leave is granted in recognition of the extra hours Management and
Professional employees work over their regular schedule. This leave 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-half (½) shift off for each 8 hours charged.
In 2012, the City will be transitioning this benefit from a fiscal to calendar year basis
for administrative purposes. Therefore, on July 1, 2012, employees will be credited
with 40 hours of annual leave for the period of July 1 to December 31, 2012.
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Beginning in 2013 and each calendar year thereafter, employees will be credited with
80 hours of management annual leave.
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 year;
employees who have used more than the pro-rated share at the time they leave City
service shall be required to repay the balance or have it deducted from their final
check. Unused balances as of the end of the year will be paid in cash unless a
different option as indicated above is elected by the employee.
b) Non-Exempt Employees
Based on an audit recommendation to eliminate payment of overtime as well as
management leave for non-exempt employees in the management group, the City is
transitioning away from providing management leave to non-exempt employees. As
part of the transition, and in order to minimize impacts to current employees, the
City will phase-out elimination of the 80 hours of management leave for all current
non-exempt Management and Professional employees (those eligible to earn
overtime). Continuing through Fiscal year 2013-2014, there will be no change to
management leave benefits for current employees; these employees will maintain
their 80 hours of management leave and also receive pay for any overtime hours
worked. Beginning on July 1, 2014 all employees in non-exempt positions will
receive overtime pay for hours actually worked, but will no longer receive
management leave.
Employees hired into non-exempt management positions on or after February 26,
2011 will receive overtime only and will not be eligible for management leave.
3. Vacation
Vacation will be accrued when an employee is in pay status and will be credited on a bi-
weekly basis. Total vacation accrual at any one time may not exceed three (3) 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 nine (9) years. For employees completing less than nine (9) years
continuous service: 120 hours vacation leave per year; provided that:
i. The City Manager is authorized to adjust department head annual vacation
accrual to provide for a maximum of 160 hours for those hired between July
1, 1996 and June 30, 2001; and
ii. The City manager is authorized to adjust the annual vacation accrual of
employees hired on or after July 1, 2001, to provide up to 40 additional hours
(i.e., to a maximum annual accrual of 160 hours) for service with a prior
employer.
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b) Nine (9), but less than fourteen (14) years. For employees completing nine (9), but
not more than fourteen (14) years continuous service; 160 hours vacation per year.
c) Fourteen (14), but less than nineteen (19) years. For employees completing fourteen
(14), but not more than nineteen (19) years continuous service; 180 hours vacation
leave per year.
d) Nineteen (19) or more years. For employees completing nineteen (19) or more years
continuous service; 200 hours vacation leave per year.
e) Employees are eligible to cash out vacation accrual balances in excess of 80 hours.
An employee may cash out a minimum of eight (8) hours to a maximum of 120
hours of accrued vacation provided the employee has taken 80 vacation hours in the
previous 12 months and has followed the election procedures set forth in this section.
Employees must elect the number of vacation hours they will cash-out during the
next calendar year, up to the maximum of 120 hours. For the 2012 calendar vacation
year, employees will make their election for vacation hours to cash out no later than
November 1, 2012. The election will apply only to vacation hours that are accrued
in the next calendar year and that are eligible for cash-out.
The election to cash-out vacation hours in each designated year will be irrevocable.
This means that employees who elect to cash-out vacation hours must cash-out the
number of accrued hours pre-designates on the election form.
Employees who do not elect a cash-out amount by November 1 of the prior calendar
year will be deemed to have waived the right to cash out any leave in the following
tax year and will not be eligible to cash-out vacation hours in the next tax year
Employees who elect cash-out amounts may request a cash-out at any time in the
designated tax year by submitting a cash-out form to payroll. Payroll will complete
the cash-out upon request, provided the requested cash-out amount has accrued and
is consistent with the amount the employee pre-designated. If the full amount of
hours designated for cash-out is not available at the time of cash-out request, the
maximum available will be paid. For employees who have not requested cash-out of
the elected amount by November 1 of each year, Payroll will automatically cash-out
the elected amount in a paycheck issued on or after the payroll date including
November 1.
4. Bereavement
Leave of absence with pay of three (3) days may be granted an employee by the head of
his/her department in the event of death in the employee’s immediate family, which is
defined for purposes of this section as wife, husband, son, son-in-law, step-son, daughter,
daughter-in-law, step-daughter, mother, mother-in-law, father, father-in-law, brother,
brother-in-law, sister, sister-in-law, grandmother, grandmother-in-law, grandfather,
grandfather-in-law, grandchild, aunt, uncle, niece, nephew, registered domestic partner, or a
close relative residing in the household of employee. Such leave shall be at full pay and shall
Formatted: No underline
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not be charged against the employee’s accrued vacation or sick leave. Requests for leave in
excess of three days shall be subject to the approval of a Council-Appointed Officer for
employees under his/her control.
M. RETIREMENT PENSION
1. Effective pay period inclusive of 1/6/07, the City’s Public Employees’ Retirement System
(PERS) benefits changed to the 2.7%@ 55 formula for non-safety members (from 2% @55).
For miscellaneous employees hired on or after July 17, 2010, the City offers the CalPERS
retirement formula two percent (2.0%) of final salary at age sixty (60).
For Safety members, the City currently offers the CalPERS "3% at 50" full formula (Section
21362.2) benefit. Local Fire Safety members newly hired after 6/08/12 will be placed in the
3%@55 formula. As soon as administratively possible, the City intends to modify the Local
Police Safety formula for new hires to 3%@55 formula.
New employees hired on or after January 1, 2013 who are “new members” as defined by the
California Public Employees’ Pension Reform Act (PEPRA), will be subject to the terms of
that statute.
2. Employee PERS Share.
The City currently payspreviously paid 6% of the employee’s CalPERS share for employees
under the 2.7%@55, 5% for employees under the 2%@60 formula, and the full employee
share for those with public safety formulas.
a) Beginning with the pay period including October 6, 2012, employees under the
2.7%@55 retirement formula will pay the full eight percent (8%) employee
contribution.
b) Beginning with the pay period including October 6, 2012, employees subject to
the 2%@60 retirement formula shall pay the full seven percent (7%) employee
contribution.
c) Beginning with the pay period including October 6, 2012, Public Safety
employees will pay the full nine percent (9%) PERS employee contribution.
c)d) Employees under the 2%@62 benefit shall pay at least 50 percent of the total
normal cost or the same contribution rate as “similarly situated” employees,
whichever is higher.
3. Final Compensation.
Final compensation for purposes of retirement shall be as set forth in the City’s contract with
CalPERS, including, when applicable, the Government Code Section 20692: Optional
Benefit, except as may otherwise be required by PEPRA.
Formatted: List Paragraph, Left, No bullets or
numbering
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4. 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.
4.5.Final compensation for employees under the 2%@62 benefit shall be as set forth in PEPRA,
including calculation based on the average of three highest consecutive years and a cap on
pensionable compensation (currently $136,440) based on IRS limits for employers that do
not participate in social security.
N. COMMUTE INCENTIVES and PARKING
1. Civic Center Parking. Employees assigned to Civic Center and adjacent work locations. The
City will provide a Civic Center Garage parking permit. Employees hired after June 30,
1994 may initially receive a parking permit for another downtown lot, subject to the
availability of space at the Civic Center Garage.
2. Alternative Commute Incentives: Employees who qualify may voluntarily elect one of the
following commute incentives for those using an eligible commute alternative on 60% or
more of their scheduled work days per month:
a) Public Transit and Vanpool. The City provides tax-free commute incentives up to the
current IRS limit, as may be amended from time to time, (currently $125/month) are
available through the Commuter Check Direct (CCD) website for employees using
Bay Area public transportation or riding in a registered vanpool at least 60% of their
scheduled work days. Administration of the Commuter Check benefit shall be
subject to the rules and regulations of the third- party administrator.
b) Bicycle. The City will provide employees with a tax-free incentive of $20 per month
to eligible employees who ride a bicycle to work.
c) Carpool. The City will provide with a taxable incentive of $30 per month to each
eligible employee in a carpool with two or more licensed drivers.
d) Walk. The City will provide employees with a taxable incentive of $20 per month to
eligible employees who walk to work.
O. AT-WILL STATUS
Certain Management and Professional Positions are designated as having “at-will” employment
status. “At-will” positions are intended to be of a limited duration and employees hired to fill
these positions shall have no constitutionally protected property or other interest in their
employment with the City. Notwithstanding any provision in the Merit System Rules and
Regulations or any other City rule, policy or procedure, at-will employees have no right to
continued employment or pre-or post-disciplinary due process and work at the will and pleasure
of the hiring authority (City Council, City Manager or Council-Appointed Officer). Work for
an at-will employee may be eliminated and/or the employee may be terminated, or asked to
resign, at any time, with or without cause, upon notice to that employee, and the employee may
resign at any time upon written notice to the hiring authority.
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1. At-will Management & Professional positions.
Department heads hired after July 1, 2004 and prior to the date of adoption of this plan were
hired as at-will employees whose terms of employment are specified by an employment
contract that includes a severance package.
Effective on the date of adoption of this plan, new employees hired or promoted to
department head, assistant department director, and all other positions listed on Attachment
B shall be at-will employees.
At-will employees will be eligible for, and shall receive, all regular benefits (i.e., health
insurance, PERS contribution to the extent paid by City, etc.) and vacation, sick leave, and
management leave as are generally provided to management employees and described in
this compensation plan, as amended from time to time. At-will employees who are
terminated or asked to resign shall, upon execution of a release of all claims against the City,
be eligible for a severance payment equivalent to four (4) weeks of salary and benefits,
increasing after completion of the first full year of service by one (1) week for every
completed year of service, up to a maximum of 12 weeks. For example, an at-will employee
who has completed six (6) years of service would be eligible to receive ten (10) weeks of
severance (4 weeks plus 1 week for each year of service). No severance shall be paid if the
employee is terminated for serious misconduct involving abuse of his or her office or
position, including but not limited to waste, fraud, violation of the law under color of
authority, misappropriation of public resources, violence, harassment or discrimination. If
the employee is later convicted of a crime involving such abuse of his or her position the
employee shall fully reimburse the City as set forth in Government Code section 53243.3.
2. Provisional employees.
The City has created a program for Provisional employment when funding is available. The
program’s purpose is to create limited duration senior management level work for the City
Manager’s Office or as designated by the City Manager. A Provisional Employee will be an
“at will” employee whose term of employment shall be no more than two (2) years. A
Provisional Employee shall be exempt and not eligible to earn overtime. A Provisional
Employee will receive limited benefits as specified in an Employment Agreement. Sections
I and II of this Compensation Plan shall not apply to Provisional Employees, except as
specified by the City Manager.
3. Management fellows.
The City has created a program for Management Fellows when funding is available. The
program’s purpose is to create limited duration entry level positions for graduate students. A
management fellow will be an “at will” employee whose term of employment shall be no
more than one (1) year. A Management Fellow shall be PERS exempt, but may receive
limited vacation, limited sick leave, limited health care benefits and other limited benefits,
as determined by the City Manager. Sections I and II of this Plan shall not apply to
Management Fellows, except as specified by the City Manager.
P. ADDITIONAL COMPENSATION FOR MAYOR AND VICE MAYOR
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The Mayor shall receive $150 monthly, and the Vice Mayor $100 monthly to defray additional
expenses of these offices.
Q. REIMBURSEMENT FOR RELOCATION EXPENSE
Policy Statement
The City of Palo Alto, in rare instances, may provide a Basic Relocation Benefits Package for
new management and professional employees, upon the approval of the City Manager or
designated subordinate. In addition, the provision of “Optional Benefits” or portions thereof,
may be extended for exceptional circumstances and only the approval of the City Manager or
designee, or for Council-appointed officers, the City Council.
The details of the Relocation Expense program are specified in the City’s Relocation Expense
policy.
R. MEAL ALLOWANCE
Management and professional employees assigned to attend night meetings are eligible to
receive reimbursement for up to $20.00 per dinner. This provision covers only receipted meals
actually taken and submitted for reimbursement.
S. GRIEVANCES REGARDING COUNCIL APPOINTED OFFICERS
Notwithstanding the grievance procedures provided in Chapter 11 of the City of Palo Alto’s
Merit System Rules and Regulations, any Management and Professional employee who is
supervised by a Council Appointed Officer and has a grievance against that Council Appointed
Officer or regarding the conduct of that Council Appointed Officer shall, following an attempt
to resolve the grievance pursuant to Step One (informal discussion), summarize the grievance
regarding the Council Appointed Officer in writing and submit it to the Director of Human
Resources for review and resolution using the methods he/she considers appropriate.
T. MERIT RULES
The City will include members of the Management/Professional Compensation Committee in
discussions regarding revision of the Merit Rules and Regulations.
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Attachment B
At-Will Positions
Management and Professional Unit
The intent of this provision under the Management/Professional Compensation Plan is to
designate classifications at the department head, assistant director, deputy director, and division
manager levels as at-will. The applicable Council Appointed Officer may designate newly
created positions at those levels not included on this list as at-will. Existing classifications that
shall be at-will include but are not limited to:
Department Heads- All departments
Assistant Directors- All departments
Deputy Directors- All departments
Division Managers
Administrative Services
Director, Administrative Services/Chief Financial Officer
Director, Office of Management & Budget
Assistant Director, Administrative Services
Chief Budget Officer
Manager, Accounting
Manager, Purchasing & Contract Administration
Manager, Real Property
City Attorney
Senior Assistant City Attorney
Assistant City Attorney
Sr. Deputy City Attorney
Deputy City Attorney
City Auditor
Deputy City Auditor
Sr. Performance Auditor
City Clerk
Assistant City Clerk
Deputy City Clerk
City Manager
Assistant City Manager/Chief Operating Officer
Deputy City Manager
Assistant to City Manager
Chief Communications Officer
Communications Manager
Manager, Economic Development
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Community Services
Director, Community Services
Assistant Director, Community Services
Manager, Recreation & Golf
Manager, Open Space & Parks
Human Resources
Director of Human Resources/Chief People Officer
Assistant Director, Human Resources
Human Resources Manager
IT
Director, IT/Chief Information Officer
Information Technology Governance Manager
Information Technology Manager
Library
Director, Libraries
Assistant Director, Library Services
Division Head, Collection & Technical Services
Manager, Library Services
Planning & Community Environment
Director, Planning & Community Environment
Assistant Director, Planning & Community Environment
Division Manager, Advance Planning
Division Manager, Chief Building Official
Division Manager, Chief Planning Official
Division Manager, Chief Transportation Official
Division Manager, Development Services Director
Public Safety
Chief of Police/Director of Public Safety
Fire Chief /Assistant Public Safety Director
Assistant Police Chief
Emergency Services Director
Deputy Director – Technical Services Division (police department)
Deputy Fire Chief
Public Works
Director, Public Works/City Engineer
Assistant Director, Public Works – Environmental Services
Assistant Director, Public Works – Public Services
Assistant Director, Public Works – Engineering
Airport Manager
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Water Quality Control Plant Manager
Utilities
Director, Utilities
Assistant Director Utilities Engineering*
Assistant Director Utilities Operations*
Assistant Director Utilities Customer Support Services*
Assistant Director Utilities/Resources Management*
Communications Manager*
Engineering Manager – Electric*
Engineering Manager –WGW*
Manager Customer Service & Meter Reading*
Manager Electric Operations*
Manager Utilities Mkt Services*
Manager Utilities Operations WGW*
Utilities Compliance Manager*
*Management positions up to and including Assistant Director in Utilities are represented
by UMPAPA and currently under negotiations
Attachment C
Information Collected for Compensation Study
Koff collected the total compensation information including active and retiree health and
pension benefits for each of the benchmarked classifications. The City uses Total
Compensation as the comparison factor for measuring competitiveness and setting the salary
structure.
1. Monthly Base Salary. The top of the salary range and the mid‐point.
2. Retirement. The amount of the employee’s State retirement (PERS) contribution, the
amount of Social Security contribution, and any alternative retirement plan where the
employee’s contribution is made by the agency on behalf of the employee (Employer Paid
Member Contribution).
3. Retiree Health. In order to be able to compare to other agencies, the normal cost, which is
the cost for active employees for the current year, was used
4. Active Health and Insurances. This is the maximum amount paid by the agency for
employees and dependents for a cafeteria or flexible benefit plan and/or health, dental,
vision, life, long‐term disability, and employee assistance insurance.
5. Administrative and Personal Leave. The number of days available to management to
reward for extraordinary effort in lieu of overtime. Personal leave may be available to other
groups of employees to augment vacation or other time off.
6. Automobile. This category includes either the provision of an auto allowance or the
provision of an auto for personal use. If a car is provided to any classification for
commuting and other personal use, the average monthly rate is estimated at $450. For
Palo Alto this benefit was primarily limited to executive staff.
7. Deferred Compensation. Deferred compensation provided to all members of a classification
with or without the requirement for a matching or minimum contribution. Palo Alto does
not match contributions by employees.
8. Other. All other benefits, including sick leave, tuition reimbursement, and mileage, many of
which are usage‐based and cannot be quantified individual employee basis.
In addition to the above list of benefits, information was gathered on cost‐cutting strategies
implemented by agencies to reduce employment budgets, and on performance incentive
programs or other performance‐based compensation programs for management classifications.
Attachment D
CITY OF PALO ALTO
COMPENSATION PLAN
Management and Professional Personnel
And Council Appointees
Compensation plan effective July 1, 2012 through June 30, 2014,
except where specifically noted.
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COMPENSATION PLAN FOR THE CITY OF PALO ALTO
Management and Professional Personnel
As used in this Plan, the term “Management and Professional” refers to all employees, including
Confidential employees, previously classified as “Management and Confidential” by the City. This
group will hereafter be identified as “Management and Professional” personnel.
SECTION I. COMPENSATION
This section applies to all management and professional employees and does not include Council
Members or 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 PROFESSIONAL COMPENSATION POLICY
The City's policy for management and professional 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 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
1. Structure. The compensation plan includes separate multi-grade structures for both
management and professional employees. Each grade will have a salary range with a mid-point
which is 20% above the minimum, and 20% below the maximum of the range.. All management
and professional positions will be assigned an appropriate pay grade based on salary survey data
and internal relationships. Actual salary within the range is determined by experience and
performance.
Competitive marketplace studies will be conducted as needed by surveying a maximum of 14
organizations similar to Palo Alto in number of employees, funding mechanisms, population
and services provided. These studies will focus on total compensation for management
positions such as first line supervisors, administrative, confidential, professional and top
management. Periodically, studies will include position-by-position comparisons using market
research and internal equity data. The results of these studies may indicate that the entire pay
grade structure be adjusted, that individual positions be reassigned to different pay grades, or
that no change takes place. Such adjustments will only affect the salary administration
framework. No individual salaries will be automatically changed because of structural
adjustments.
A department director may request that HR reevaluate a job or jobs in his or her department
based on significant and permanent changes in job content. In doing so the director will supply
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needed information and will provide a position description questionnaire as requested. The
Chief People Officer will respond to such requests within his or her discretion.
2. Compensation Adjustment Authorization. In consultation with feedback received from the
Management and Professional Compensation Committee, the City Manager may propose as part
of the budget process for Council approval of a compensation adjustment based on (1)
competitive market data, (2) changes in internal position relationships, (3) the City's ability to
pay, and (4) a recommendation received from the Chief People Officer. For fiscal year 2013 the
compensation adjustment to mid-point shall be three percent (3%) effective the pay period
including October 6, 2012
In years when there is an adjustment to mid-point, this adjustment will be available for those
management/professional employees who have received an overall rating of "meets" or
"exceeds" expectations on their annual review and who have not been on a performance
improvement plan during the preceding fiscal year. Nothing herein shall preclude an employee's
manager from awarding a mid-point adjustment increase to an employee on a performance plan
at a later date should employee's performance improve.
a) Base Compensation. Compensation for management and professional employees includes
bi-weekly base salary and is paid on a continuing basis. On a fiscal year basis, the bi-weekly
base salary must fall within pay grade limits of no less than 20% below the mid-point and no
more than 20% above the mid-point.
Base salary increases are earned in accordance with administrative guidelines based upon
growth within the position and performance, which must meet or exceed position standards,
the salary structure and the City’s ability to pay.
b) Performance Planning and Appraisal. Performance appraisals will be conducted at the end of
each fiscal year during the months of July through September 30 each year prior to
determining individual employee fixed 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. The performance appraisals should be implemented in a manner
that will achieve the following objectives:
Define the employee’s job duties and expected level of performance for the next
review period to ensure that both the employee and supervisor have a clear
understanding of the employee’s role and responsibilities;
Evaluate and document past performance to serve as a basis for establishing and
obtaining future performance standards/objectives;
Facilitate two-way communication and understanding between the employee and his
or her supervisor;
Counsel and encourage employees to work toward a learning development plan and
realize their full potential;
Establish future work plan objectives.
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Work plans should include job related projects or special goals related to regular job duties
when applicable. At the conclusion of the fiscal year (or review period), supervisors shall
make a final determination of the overall performance rating.
Recommendations shall be forwarded to department heads and to the Chief People Officer
or appropriate Council appointed officer who will then determine individual fixed
adjustments according to the provisions of the compensation plan. This process should be
completed by September 30.
C. MANAGEMENT AND PROFESSIONAL COMPENSATION ADJUSTMENT
AUTHORIZATION
1. Council-appointed officers are authorized to pay salaries in accordance with this plan to
non-Council-appointed management and professional employees in an amount not to exceed
the aggregate of approved management and professional positions in the Table of
Organization for the applicable fiscal year.
2. Individual management and professional compensation authorized by a Council-appointed
officer under the Management and Professional Compensation Plan may not be less than
20% below nor more than 20% above the mid-point for the individual position grades
authorized in Salary Schedule attached.
3. The Council-appointed officers are authorized to establish such administrative rules as are
necessary to implement the Management and Professional Salary Plan subject to the
limitations of the approved compensation adjustment authorization and the approved grade
and mid-point structure.
4. Notwithstanding any other provision of this Compensation Plan, 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 professional positions including Council
Appointed Officers as applicable and including Council Members where 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. OVERTIME
Compensation for overtime work shall be in conformance with the Merit Rules and Regulations
and Policies and Procedures.
B. IN LIEU HOLIDAY PAY
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Employees who work a schedule where a regular day off falls on a holiday will be paid for the
hours they would have normally worked on that day. If the holiday falls on a non-workday for
an exempt employee, the employee may, with supervisory approval, take another day off within
the pay period or the following pay period.
C. WORKING OUT OF CLASSIFICATION PAY
Where management and professional employees, on a temporary basis, are assigned to perform
all significant duties of a higher classification, the City Manager may authorize payment within
the range of the higher classification for the specified time frame. Working out of class pay is
normally not to exceed 10% more than the employee’s current salary and shall be documented
on a Personnel Action Form, with a description of the additional duties to be performed and an
end date.
D. STAND-BY PAY
Employees eligible for overtime may be entitled to stand-by pay, approved by the City Manager
on a case by case basis, in extreme circumstances involving unavailability of non-management
staff. Compensation is as follows:
Monday through Friday $40 per day
Saturday, Sunday, Holidays $58 per day
E. CALL OUT PAY
Effective pay period beginning February 26, 2011, Exempt management and professional
classifications will be compensated for Call Out as outlined below with Management approval
(and will not be eligible for overtime pay). Call Out applies when: (1) an employee previously
left City premises, (2) is called back to the work location outside of regularly scheduled working
hours, and (3) the Call Back is for an emergency arising out of situations involving real or
potential loss of service, property or personal danger. Employees called back will be expected to
respond directly to the location of the problem.
Compensation is per Call Out as reported on timecard and will be paid as follows:
Monday through Friday: $140 per day
Saturday and Sunday: $200 per day
F. NIGHT SHIFT PREMIUM
Night shift differential shall be paid at the rate of five percent (5%) to regular full-time
employees who are regularly assigned to shift work between 6:00 p.m. and 8:00 a.m., or to
employees who are temporarily assigned to work a full shift between 6:00 p.m. and 8:00 a.m.
G. UNIFORM PURCHASE PLAN - SWORN POLICE, FIRE PERSONNEL, and OPEN
SPACE PERSONNEL
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Uniforms, including cleaning, will be provided with replacement provisions on an as-needed
basis in conformance with department policy.
H. GROUP INSURANCE
1. Effective Date of Coverage for New Employees
For newly-hired regular employees coverage begins on the first day of the month following
date of hire for the health plan, dental plan, vision care plan, long term disability and life
insurance plans if these benefits are elected.
2. Active Employee Health Plan
a) Based on an employee’s family status, the City shall pay up to the monthly medical
premium for the second most expensive plan among the existing array of plans available
during the term of this compensation plan on behalf of eligible employees (including
Council Appointed Officers and Council Members) and dependents, except as provided
in section b, below. Eligible dependents, under current law, include spouses, children
under the age of 26 and never married (natural, adopted, or stepchildren), economically
dependent children, and domestic partners registered with the Secretary of State. If
PERS changes the plans it offers, the City will continue to provide an equivalent benefit
at an equivalent cost.
b) Effective in the pay period including October 6, 2012, participating employees will
contribute 10% of the premium cost for the employee-selected plan, and the City shall
contribute 90%, with a maximum City contribution of 90% of the second highest plan. .
c) City medical premium contributions will be prorated for part-time employees based on
the number of hours per week the part-time employee is assigned to work.
d) Coverage for Domestic Partners:
1) Domestic Partnership Registered with the California Secretary of State: Employees
may add their domestic partner as a dependent to their elected health plan coverage if
the domestic partnership is registered with the Secretary of State.
2) Domestic Partnership Not Registered with the California Secretary of State:
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 maximum monthly City employer
contribution for one-party coverage under the CalPERS Health Benefits Program (or
PORAC if a safety department employee) for an employee covered under this
agreement. Evidence of premium payment will be required with request for
reimbursement.
e) PERS Choice Reimbursement Plan
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Will be eliminated effective January 1, 2013. Management and Professional
personnel enrolled in the PERS Choice medical plan may submit a request for
payment, as specified below, for non-covered medical expenses, incurred during the
period of January 1, through December 31, of the plan year, that exceed $2,500. The
maximum annual reimbursement amount provided under this program is:
$700 for employees enrolled in the Employee-Only category;
$900 for employees enrolled in the Employee and One Dependent
category, and
$1,100 for employees enrolled in the Family category.
Any amounts reimbursed to an individual under this program would be
included in the employee’s gross income and is not PERSable.
This program shall only reimburse employees for medical expenses that are not
reimbursed through any other means and meet the definition in Section 213(d) of the
Internal Revenue Code. (Examples of eligible expenses include medical plan
deductibles and co-payments, prescription drugs, dental care, hearing care, and
vision care.) However, in order to have any expenses reimbursed under this
program, the employee must have allocated 100% ($2,500.00) of their 2010 calendar
Excess Benefit funds into the Medical FSA option during the election that occurred
in December 2009. In addition, all such reimbursements from the Excess Benefit
Program must have been solely for medical expenses, as defined by Section 213(d)
of the Internal Revenue Code. If the employee has designated his/her Excess
Medical funds for any other qualifying expenses (i.e. dependent care, Professional
Development, Deferred Compensation contributions), the employee would not be
eligible for reimbursement under this program.
Employees may submit a final claim for the 2012 plan year’s expenses during January.
Any amounts remaining from the PERS Choice reimbursement plan after the claims for
the plan year had been processed shall be forfeited.
3. Alternative Medical Benefit Program
If a regular employee and/or the employee’s dependent(s) are eligible for medical insurance
through another employer-sponsored or association medical plan, the employee may opt for
alternative medical insurance coverage through the other employer-sponsored or association
plan and waives his/her right to the City of Palo Alto’s medical insurance coverage for same
individuals. Employees electing alternative coverage and no City coverage will receive cash
payments in the amount of 90% of the average monthly premium for one party, which is
$284.00.
4. Retiree Health Plan
a) Employees Hired Prior to January 1, 2004
Monthly City-paid premium contributions for a retiree-selected health plan through the
CalPERS Health Benefits Program will be made as provided under the Public
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Employees” Medical and Hospital Care Act. The City’s monthly employer contribution
for each employee retiring on or after January 1, 2007 and prior to March 31, 2011 shall
be the amount necessary to pay for the cost of his or her enrollment in a health benefits
plan up to the monthly premium for the second most expensive plan offered to
management and professional personnel during the contract term (among the existing
array of plans.) The City’s contribution for an employee hired before January 1, 2004
who retires on or after March 30, 2011 shall be the same contribution amount it makes
from time to time for active City employees.
b) Post – 1/1/04 Hires
For those Management and professional employees hired after January 1, 2004, the
PERS law vesting schedule set forth in Government Code section 22893 will apply.
Under that law, an employee is eligible for 50% of the specified employer health
premium contribution after ten (10) years of service credit, provided at least five (5) of
those years were performed at the City of Palo Alto. After ten (10) years of service
credit, each additional service credit year increases 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 – 1/1/04 hires shall be
the minimum contribution set by PERS under section 22893 based on a weighted
average of available health plan premiums.
5. Dental Plan
a) The City shall pay covered plan charges on behalf of all eligible employees and
dependents. (Domestic partners who are either registered with the Secretary of State or
who meet the requirements of the City of Palo Alto Declaration of Domestic Partnership,
and are registered with the Human Resources Department are considered dependents
under the plan.) Benefits for regular part-time employees hired or assigned to a part-time
schedule will be prorated in accordance with his/her percentage of a full- time work
schedule.
b) The City’s Dental Plan provides the following:
Maximum Benefits per Calendar Year- $2,000 per person
Lifetime Maximum for Orthodontics- The City will pay up to $2,000.00 for
orthodontia coverage (not included in annual dental maximum)
Major Dental Services 50% UCR*
Orthodontics 50% UCR*
Basic Benefits (All other covered services)
First Calendar Year of Eligibility 70% UCR*
Subsequent Calendar Years 70%-100%
*Usual, Customary, and Reasonable
Composite (tooth covered) fillings for posterior teeth
For each dental plan member, the percentage of coverage for basic benefits will begin at
70% for the first calendar year of coverage and increase by 10% (up to a maximum of
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100%) effective the first day of the next calendar year as long as the member utilizes the
plan at least once during the current year. Per the Delta Dental contract effective October
1, 2005, if the member does not utilize the plan during the current year, the percentage of
coverage for the next calendar year shall remain unchanged from the current year.
If a dental plan member ever loses coverage under the plan, the applicable percentage of
coverage for basic benefits provided during any future period of coverage will
commence at 70% as if the dental plan member was a new enrollee. Examples of when a
member might lose coverage under the plan would include:
Employee goes on an unpaid leave of absence and elects not to pay the required
dental premiums for his/her family’s coverage during the leave.
Employee elects to drop one or more covered dependents from the plan during an
open enrollment period so that they might be covered on a spouse’s non-City of
Palo Alto dental plan.
6. Basic Life Insurance
The City shall provide a basic group term life insurance with Accidental Death and
Dismemberment (AD&D) coverage, in an amount equal to the employee's annual basic pay
(rounded to the next highest $1,000) at no-cost to the employee. AD&D pays an additional
amount equal to the employee’s annual basic pay (rounded to the next highest $1,000).
7. Supplemental Life And AD&D Insurance
An employee may, at his/her cost, purchase additional life insurance and additional AD&D
coverage equal to one- or two-times his or her annual salary. The maximum amount of life
insurance available to the employee is up to $325,000 and the maximum amount of AD&D
coverage available is up to $325,000.
8. Long Term Disability Insurance
a) The City shall provide long term disability (LTD) insurance with a benefit of 2/3
monthly salary, up to a maximum benefit of $10,000 per month. The City shall pay the
premium for the first $6,000 of base monthly salary. For employees whose base monthly
salary exceeds $6,000, the employee shall pay the cost of the required premium based
upon their monthly salary between $6,000 and $15,000.
b) For employees whose base monthly salary exceeds $6,000 and who have no eligible
dependents covered under the City’s medical, dental or vision plans, the City will pay up
to $17.50 per month towards the employee’s cost for LTD coverage.
9. Vision Care
a) The City shall provide vision care coverage for employee and dependents. Coverage is
administered by Vision Service Plan (VSP). The plan provides an exam every 12
months; lenses every 24 months; frames every 24 months, all subject to a $20 co-
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payment as defined in the Vision Services Benefits Plan A schedule. Benefits for regular
part-time employees will be prorated as follows:
Employees hired after January 1, 2004, who will work less than full time, will receive
prorated premium costs for vision benefits in accordance with his/her percentage of a
full-time work schedule. Vision benefits for regular part-time employees hired or
assigned to a part-time schedule will be prorated in accordance with his/her percentage
of a full- time work schedule.
b) Effective July 1, 1996, dependents include eligible domestic partners who are either
registered with the Secretary of State or who meet the requirements of the City of Palo
Alto Declaration of Domestic Partnership, and are registered with the Human Resources
Department.
I. EMPLOYEE ASSISTANCE PLAN
The Employee Assistance Plan (EAP) provides employees with confidential personal
counseling, work and family related issues, eldercare, substance abuse, etc. In addition, EAP
programs provide a valuable tool for supervisors to refer troubled employees to professional
outside help. This service staffed by experienced clinicians is available to employees and their
dependents by calling a toll-free phone line 24 hours a day, seven days a week. Guidance is also
available online.
J. SAFETY DIFFERENTIALS
1. Police Department - Personnel Development Program
Pursuant to administrative rules governing eligibility and qualification, the following may be
granted to sworn police personnel:
P.O.S.T. Intermediate Certificate: five percent (5%) above base salary
P.O.S.T. Advanced Certificate: seven and a half (7 ½%) above base salary
2. Fire Department - EMT Differential
Pursuant to administrative rules governing eligibility and qualification, the following may be
granted to sworn Fire personnel:
EMT Differential: three percent (3%) above base salary
K. MANAGEMENT and PROFESSIONAL BENEFIT PROGRAM
Management and professional employees are eligible for Sections 1, 2, 3, and 4 of the
Management Benefit Program. City Council Members are eligible for Section 3 only.
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1. Professional Development - Reimbursement
The purpose of this program is to provide employees with resources to improve and
supplement their job and professional skills. Reimbursement for authorized self-
improvement activities may be granted each management and professional employee up to a
maximum of five hundred dollars ($500) per fiscal year. A departmental training fund of
one thousand dollars per employee ($1,000) will be established for subject matter,
leadership or other training that the Department Director identifies as a need for employees
within that Department.
The following items are eligible for reimbursement:
a) Civic and professional association memberships
b) Conference participation and travel expenses, which must occur within the
compensation plan period.
c) Educational programs, books and videos, and tuition reimbursement designed to
maintain or improve the employee's skills in performing his or her job or future job
opportunities, should support the City’s mission or be necessary to meet the
educational requirements for qualification for employment. Permissible educational
expenses are refresher courses, courses dealing with current developments, academic
or vocational courses, as well as the travel expenses associated with the courses as
defined by the City’s travel expense report from the Policy & Procedures Manual
Section 1-02 ASD.
d) Professional and trade journal subscriptions not to exceed 12 months.
e) Approval will be at discretion of department head and signature is required on
reimbursement form.
Amounts under this professional development program will be pro-rated in the first
year of employment or promotion into a position covered by this Compensation Plan
2. Physical Examinations
All management and professional employees are eligible to receive an annual physical
examination as follows:
a) Use the periodic health exam benefit as provided under the PERS Health Plan option
you have selected. Each of the PERS Health Plans provides for a periodic physical
examination. The examination must be performed by your primary care physician—
unless he/she refers you to another physician.
b) The types of tests and the frequency of the tests cannot exceed AMA guidelines. The
guidelines are a suggested minimum based on research studies concerning
preventative care. The judgment of your physician is the final determinant for your
care.
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c) Any additional necessary asymptomatic tests that are required by your physician that
are not covered by your health plan, will be reimbursed by the City. Any
symptomatic tests will be covered under your PERS Health Plan.
The Reimbursement for Periodic Physical Exam Form is available on the Human Resources
Intranet site. This benefit will not be pro-rated.
3. Excess Benefit
This benefit is designed to meet the requirements of Section 125 of the Internal Revenue
Code, with exception of Gym or Health Club Membership. Every calendar year, each
employee will be provided with $2,500 that they can designate among the following options:
a) Medical Flexible Spending Account (Medical FSA). Provides reimbursement for
excess medical/dental/vision, or expenses that are incurred by employees and their
dependents which are not covered or reimbursed by any other source, including
existing City-sponsored plans. This includes prescribed medications and copayments
as well as over-the-counter drugs, including: antacids, allergy medicines, pain
relievers and cold medicines. However, nonprescription dietary supplements (e.g.
vitamins, etc.) toiletries (e.g. toothpaste), cosmetics (e.g. face cream), and items used
for cosmetic purposes (e.g. Rogaine) are not acceptable.
b) Dependent Care Flexible Spending Account (Dependent Care FSA). Provides
reimbursement for qualified 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
(6) individuals (other than a resident of the facility).
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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.
c) Non-taxable Professional Development Spending Account. Provides reimbursement
for Non-Taxable professional development expenses (e.g.,job-related training and
education, seminars, training manuals, etc.) to the extent they are not paid or
reimbursed under any other plan of the City.
d) Gym or Health Club memberships. Provides reimbursement for annual or monthly
memberships, including personal trainers. Reimbursement of this expense is taxable
to the employee.
e) Deferred Compensation. Provides a one-time contribution to the employee’s City-
sponsored 457 Deferred Compensation plan with either ICMA-RC or the Hartford.
Amounts designated by employees to either the Medical FSA, Dependent Care FSA, or
Professional Development options are done so on a “use –it-or-lose-it” basis. This means
that any amounts designated and not used by the end of the calendar year (or end of the
extended grace period for the medical FSA) will be forfeited by the employee and returned
to the plan.
Specified amounts under this benefit will be applied on a pro-rata basis for employees who
are part-time or who are in a management or professional pay status for less than the full
fiscal year. Such benefits will be pro-rated in the first year of employment (based on hire
date) but will not be pro-rated upon separation of employment.
L. LEAVES
1. Sick Leave
a) Sick leave shall be accrued bi-weekly provided the employee has been in a pay status
for 50% or more of a bi-weekly pay period. Sick leave shall be accrued at the rate of
3.7 hours per bi-weekly pay period for those employees working a 40-hour duty
schedule. Those assigned work schedules which are greater or lesser than 40 hours
will accrue sick leave at the ratio of their work schedule to 40 hours.
b) Employees may use up to 20 hours of sick leave per calendar year for personal
business. The scheduling of such leave is subject to the approval of the appropriate
level of Management.
c) Employees leaving the municipal service shall forfeit all accumulated sick leave,
except as otherwise provided by law and by Section 609 of the Merit Rules and
Regulations. In the event that notice of resignation is given, sick leave may be used
only through the day which was designated as the final day of work by such notice.
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d) Employees that were hired before December 1, 1983 and who leave the municipal
service in good standing, or who die while employed in good standing by the city,
and who have 15 or more years of continuous service shall receive compensation for
unused sick leave hours in a sum equal to two and one-half percent (2½%) of their
unused sick leave hours multiplied by their years of continuous service and their
basic hourly rate of pay at termination. Full sick leave accrual will be paid in the
event of termination due to disability. See Merit System Rules and Regulations,
Chapter 6, Section 609.
e) Up to nine (9) days of sick leave per calendar year may be used for illness in the
immediate family, including a registered domestic partner.
f) Management and Professional employees eligible, as specified above if hired before
December 1, 1983, to be compensated for sick leave may annually convert sick leave
hours in excess of 600 to cash or deferred compensation, according to the formula set
forth above, up to a maximum of $2,000 per fiscal year.
g) In accordance with the City Merit Rules and Regulations, a new employee may, if
necessary, use up to 48 hours or shift equivalent of sick leave at any time during the
first six (6) months of employment.
2. Management Annual Leave
a) Exempt Employees
Regular management and professional employees will be credited with 80 hours of
annual leave. This leave is granted in recognition of the extra hours Management and
Professional employees work over their regular schedule. This leave 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-half (½) shift off for each 8 hours charged.
In 2012, the City will be transitioning this benefit from a fiscal to calendar year basis
for administrative purposes. Therefore, on July 1, 2012, employees will be credited
with 40 hours of annual leave for the period of July 1 to December 31, 2012.
Beginning in 2013 and each calendar year thereafter, employees will be credited with
80 hours of management annual leave.
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 year;
employees who have used more than the pro-rated share at the time they leave City
service shall be required to repay the balance or have it deducted from their final
check. Unused balances as of the end of the year will be paid in cash unless a
different option as indicated above is elected by the employee.
b) Non-Exempt Employees
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Based on an audit recommendation to eliminate payment of overtime as well as
management leave for non-exempt employees in the management group, the City is
transitioning away from providing management leave to non-exempt employees. As
part of the transition, and in order to minimize impacts to current employees, the
City will phase-out elimination of the 80 hours of management leave for all current
non-exempt Management and Professional employees (those eligible to earn
overtime). Continuing through Fiscal year 2013-2014, there will be no change to
management leave benefits for current employees; these employees will maintain
their 80 hours of management leave and also receive pay for any overtime hours
worked. Beginning on July 1, 2014 all employees in non-exempt positions will
receive overtime pay for hours actually worked, but will no longer receive
management leave.
Employees hired into non-exempt management positions on or after February 26,
2011 will receive overtime only and will not be eligible for management leave.
3. Vacation
Vacation will be accrued when an employee is in pay status and will be credited on a bi-
weekly basis. Total vacation accrual at any one time may not exceed three (3) 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 nine (9) years. For employees completing less than nine (9) years
continuous service: 120 hours vacation leave per year; provided that:
i. The City Manager is authorized to adjust department head annual vacation
accrual to provide for a maximum of 160 hours for those hired between July
1, 1996 and June 30, 2001; and
ii. The City manager is authorized to adjust the annual vacation accrual of
employees hired on or after July 1, 2001, to provide up to 40 additional hours
(i.e., to a maximum annual accrual of 160 hours) for service with a prior
employer.
b) Nine (9), but less than fourteen (14) years. For employees completing nine (9), but
not more than fourteen (14) years continuous service; 160 hours vacation per year.
c) Fourteen (14), but less than nineteen (19) years. For employees completing fourteen
(14), but not more than nineteen (19) years continuous service; 180 hours vacation
leave per year.
d) Nineteen (19) or more years. For employees completing nineteen (19) or more years
continuous service; 200 hours vacation leave per year.
e) Employees are eligible to cash out vacation accrual balances in excess of 80 hours.
An employee may cash out a minimum of eight (8) hours to a maximum of 120
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hours of accrued vacation provided the employee has taken 80 vacation hours in the
previous 12 months and has followed the election procedures set forth in this section.
Employees must elect the number of vacation hours they will cash-out during the
next calendar year, up to the maximum of 120 hours. For the 2012 calendar vacation
year, employees will make their election for vacation hours to cash out no later than
November 1, 2012. The election will apply only to vacation hours that are accrued
in the next calendar year and that are eligible for cash-out.
The election to cash-out vacation hours in each designated year will be irrevocable.
This means that employees who elect to cash-out vacation hours must cash-out the
number of accrued hours pre-designates on the election form.
Employees who do not elect a cash-out amount by November 1 of the prior calendar
year will be deemed to have waived the right to cash out any leave in the following
tax year and will not be eligible to cash-out vacation hours in the next tax year
Employees who elect cash-out amounts may request a cash-out at any time in the
designated tax year by submitting a cash-out form to payroll. Payroll will complete
the cash-out upon request, provided the requested cash-out amount has accrued and
is consistent with the amount the employee pre-designated. If the full amount of
hours designated for cash-out is not available at the time of cash-out request, the
maximum available will be paid. For employees who have not requested cash-out of
the elected amount by November 1 of each year, Payroll will automatically cash-out
the elected amount in a paycheck issued on or after the payroll date including
November 1.
4. Bereavement
Leave of absence with pay of three (3) days may be granted an employee by the head of
his/her department in the event of death in the employee’s immediate family, which is
defined for purposes of this section as wife, husband, son, son-in-law, step-son, daughter,
daughter-in-law, step-daughter, mother, mother-in-law, father, father-in-law, brother,
brother-in-law, sister, sister-in-law, grandmother, grandmother-in-law, grandfather,
grandfather-in-law, grandchild, aunt, uncle, niece, nephew, registered domestic partner, or a
close relative residing in the household of employee. Such leave shall be at full pay and shall
not be charged against the employee’s accrued vacation or sick leave. Requests for leave in
excess of three days shall be subject to the approval of a Council-Appointed Officer for
employees under his/her control.
M. RETIREMENT PENSION
1. Effective pay period inclusive of 1/6/07, the City’s Public Employees’ Retirement System
(PERS) benefits changed to the 2.7%@ 55 formula for non-safety members (from 2% @55).
For miscellaneous employees hired on or after July 17, 2010, the City offers the CalPERS
retirement formula two percent (2.0%) of final salary at age sixty (60).
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For Safety members, the City currently offers the CalPERS "3% at 50" full formula (Section
21362.2) benefit. Local Fire Safety members newly hired after 6/08/12 will be placed in the
3%@55 formula. As soon as administratively possible, the City intends to modify the Local
Police Safety formula for new hires to 3%@55 formula.
New employees hired on or after January 1, 2013 who are “new members” as defined by the
California Public Employees’ Pension Reform Act (PEPRA), will be subject to the terms of
that statute.
2. Employee PERS Share.
The City previously paid 6% of the employee’s CalPERS share for employees under the
2.7%@55, 5% for employees under the 2%@60 formula, and the full employee share for
those with public safety formulas.
a) Beginning with the pay period including October 6, 2012, employees under the
2.7%@55 retirement formula will pay the full eight percent (8%) employee
contribution.
b) Beginning with the pay period including October 6, 2012, employees subject to
the 2%@60 retirement formula shall pay the full seven percent (7%) employee
contribution.
c) Beginning with the pay period including October 6, 2012, Public Safety
employees will pay the full nine percent (9%) PERS employee contribution.
d) Employees under the 2%@62 benefit shall pay at least 50 percent of the total
normal cost or the same contribution rate as “similarly situated” employees,
whichever is higher.
3. Final Compensation.
Final compensation for purposes of retirement shall be as set forth in the City’s contract with
CalPERS, including, when applicable, the Government Code Section 20692: Optional
Benefit, except as may otherwise be required by PEPRA.
4. 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.
5. Final compensation for employees under the 2%@62 benefit shall be as set forth in PEPRA,
including calculation based on the average of three highest consecutive years and a cap on
pensionable compensation (currently $136,440) based on IRS limits for employers that do
not participate in social security.
N. COMMUTE INCENTIVES and PARKING
1. Civic Center Parking. Employees assigned to Civic Center and adjacent work locations. The
City will provide a Civic Center Garage parking permit. Employees hired after June 30,
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1994 may initially receive a parking permit for another downtown lot, subject to the
availability of space at the Civic Center Garage.
2. Alternative Commute Incentives: Employees who qualify may voluntarily elect one of the
following commute incentives for those using an eligible commute alternative on 60% or
more of their scheduled work days per month:
a) Public Transit and Vanpool. The City provides tax-free commute incentives up to the
current IRS limit, as may be amended from time to time, (currently $125/month) are
available through the Commuter Check Direct (CCD) website for employees using
Bay Area public transportation or riding in a registered vanpool at least 60% of their
scheduled work days. Administration of the Commuter Check benefit shall be
subject to the rules and regulations of the third- party administrator.
b) Bicycle. The City will provide employees with a tax-free incentive of $20 per month
to eligible employees who ride a bicycle to work.
c) Carpool. The City will provide with a taxable incentive of $30 per month to each
eligible employee in a carpool with two or more licensed drivers.
d) Walk. The City will provide employees with a taxable incentive of $20 per month to
eligible employees who walk to work.
O. AT-WILL STATUS
Certain Management and Professional Positions are designated as having “at-will” employment
status. “At-will” positions are intended to be of a limited duration and employees hired to fill
these positions shall have no constitutionally protected property or other interest in their
employment with the City. Notwithstanding any provision in the Merit System Rules and
Regulations or any other City rule, policy or procedure, at-will employees have no right to
continued employment or pre-or post-disciplinary due process and work at the will and pleasure
of the hiring authority (City Council, City Manager or Council-Appointed Officer). Work for
an at-will employee may be eliminated and/or the employee may be terminated, or asked to
resign, at any time, with or without cause, upon notice to that employee, and the employee may
resign at any time upon written notice to the hiring authority.
1. At-will Management & Professional positions.
Department heads hired after July 1, 2004 and prior to the date of adoption of this plan were
hired as at-will employees whose terms of employment are specified by an employment
contract that includes a severance package.
Effective on the date of adoption of this plan, new employees hired or promoted to
department head, assistant department director, and all other positions listed on Attachment
B shall be at-will employees.
At-will employees will be eligible for, and shall receive, all regular benefits (i.e., health
insurance, PERS contribution to the extent paid by City, etc.) and vacation, sick leave, and
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management leave as are generally provided to management employees and described in
this compensation plan, as amended from time to time. At-will employees who are
terminated or asked to resign shall, upon execution of a release of all claims against the City,
be eligible for a severance payment equivalent to four (4) weeks of salary and benefits,
increasing after completion of the first full year of service by one (1) week for every
completed year of service, up to a maximum of 12 weeks. For example, an at-will employee
who has completed six (6) years of service would be eligible to receive ten (10) weeks of
severance (4 weeks plus 1 week for each year of service). No severance shall be paid if the
employee is terminated for serious misconduct involving abuse of his or her office or
position, including but not limited to waste, fraud, violation of the law under color of
authority, misappropriation of public resources, violence, harassment or discrimination. If
the employee is later convicted of a crime involving such abuse of his or her position the
employee shall fully reimburse the City as set forth in Government Code section 53243.3.
2. Provisional employees.
The City has created a program for Provisional employment when funding is available. The
program’s purpose is to create limited duration senior management level work for the City
Manager’s Office or as designated by the City Manager. A Provisional Employee will be an
“at will” employee whose term of employment shall be no more than two (2) years. A
Provisional Employee shall be exempt and not eligible to earn overtime. A Provisional
Employee will receive limited benefits as specified in an Employment Agreement. Sections
I and II of this Compensation Plan shall not apply to Provisional Employees, except as
specified by the City Manager.
3. Management fellows.
The City has created a program for Management Fellows when funding is available. The
program’s purpose is to create limited duration entry level positions for graduate students. A
management fellow will be an “at will” employee whose term of employment shall be no
more than one (1) year. A Management Fellow shall be PERS exempt, but may receive
limited vacation, limited sick leave, limited health care benefits and other limited benefits,
as determined by the City Manager. Sections I and II of this Plan shall not apply to
Management Fellows, except as specified by the City Manager.
P. ADDITIONAL COMPENSATION FOR MAYOR AND VICE MAYOR
The Mayor shall receive $150 monthly, and the Vice Mayor $100 monthly to defray additional
expenses of these offices.
Q. REIMBURSEMENT FOR RELOCATION EXPENSE
Policy Statement
The City of Palo Alto, in rare instances, may provide a Basic Relocation Benefits Package for
new management and professional employees, upon the approval of the City Manager or
designated subordinate. In addition, the provision of “Optional Benefits” or portions thereof,
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may be extended for exceptional circumstances and only the approval of the City Manager or
designee, or for Council-appointed officers, the City Council.
The details of the Relocation Expense program are specified in the City’s Relocation Expense
policy.
R. MEAL ALLOWANCE
Management and professional employees assigned to attend night meetings are eligible to
receive reimbursement for up to $20.00 per dinner. This provision covers only receipted meals
actually taken and submitted for reimbursement.
S. GRIEVANCES REGARDING COUNCIL APPOINTED OFFICERS
Notwithstanding the grievance procedures provided in Chapter 11 of the City of Palo Alto’s
Merit System Rules and Regulations, any Management and Professional employee who is
supervised by a Council Appointed Officer and has a grievance against that Council Appointed
Officer or regarding the conduct of that Council Appointed Officer shall, following an attempt
to resolve the grievance pursuant to Step One (informal discussion), summarize the grievance
regarding the Council Appointed Officer in writing and submit it to the Director of Human
Resources for review and resolution using the methods he/she considers appropriate.
T. MERIT RULES
The City will include members of the Management/Professional Compensation Committee in
discussions regarding revision of the Merit Rules and Regulations.
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Attachment B
At-Will Positions
Management and Professional Unit
The intent of this provision under the Management/Professional Compensation Plan is to
designate classifications at the department head, assistant director, deputy director, and division
manager levels as at-will. The applicable Council Appointed Officer may designate newly
created positions at those levels not included on this list as at-will. Existing classifications that
shall be at-will include but are not limited to:
Department Heads- All departments
Assistant Directors- All departments
Deputy Directors- All departments
Division Managers
Administrative Services
Director, Administrative Services/Chief Financial Officer
Director, Office of Management & Budget
Assistant Director, Administrative Services
Chief Budget Officer
Manager, Accounting
Manager, Purchasing & Contract Administration
Manager, Real Property
City Attorney
Senior Assistant City Attorney
Assistant City Attorney
Sr. Deputy City Attorney
Deputy City Attorney
City Auditor
Deputy City Auditor
Sr. Performance Auditor
City Clerk
Assistant City Clerk
Deputy City Clerk
City Manager
Assistant City Manager/Chief Operating Officer
Deputy City Manager
Assistant to City Manager
Chief Communications Officer
Communications Manager
Manager, Economic Development
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Community Services
Director, Community Services
Assistant Director, Community Services
Manager, Recreation & Golf
Manager, Open Space & Parks
Human Resources
Director of Human Resources/Chief People Officer
Assistant Director, Human Resources
Human Resources Manager
IT
Director, IT/Chief Information Officer
Information Technology Governance Manager
Information Technology Manager
Library
Director, Libraries
Assistant Director, Library Services
Division Head, Collection & Technical Services
Manager, Library Services
Planning & Community Environment
Director, Planning & Community Environment
Assistant Director, Planning & Community Environment
Division Manager, Advance Planning
Division Manager, Chief Building Official
Division Manager, Chief Planning Official
Division Manager, Chief Transportation Official
Division Manager, Development Services Director
Public Safety
Chief of Police/Director of Public Safety
Fire Chief /Assistant Public Safety Director
Assistant Police Chief
Emergency Services Director
Deputy Director – Technical Services Division (police department)
Deputy Fire Chief
Public Works
Director, Public Works/City Engineer
Assistant Director, Public Works – Environmental Services
Assistant Director, Public Works – Public Services
Assistant Director, Public Works – Engineering
Airport Manager
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Water Quality Control Plant Manager
Utilities
Director, Utilities
Assistant Director Utilities Engineering*
Assistant Director Utilities Operations*
Assistant Director Utilities Customer Support Services*
Assistant Director Utilities/Resources Management*
Communications Manager*
Engineering Manager – Electric*
Engineering Manager –WGW*
Manager Customer Service & Meter Reading*
Manager Electric Operations*
Manager Utilities Mkt Services*
Manager Utilities Operations WGW*
Utilities Compliance Manager*
*Management positions up to and including Assistant Director in Utilities are represented
by UMPAPA and currently under negotiations
Mid Point
190 Accountant $6,647.77 $79,768.00 $3,068.00 $38.35 NON-EXEMPT
76 Administrative Assistant $5,732.35 $68,785.60 $2,645.60 $33.07 EXEMPT
115 Assistant Building Official $9,738.99 $116,875.20 $4,495.20 $56.19 EXEMPT
132 Assistant Chief of Police $15,247.85 $182,977.60 $7,037.60 $87.97 EXEMPT
108 Assistant City Attorney $12,923.17 $155,084.80 $5,964.80 $74.56 EXEMPT
109 Assistant City Clerk $7,521.34 $90,251.20 $3,471.20 $43.39 EXEMPT
107
Assistant City Manager/Chief Operating
Officer $15,838.46 $190,070.40 $7,310.40 $91.38 EXEMPT
73 Assistant Director Administrative Services $13,030.91 $156,374.40 $6,014.40 $75.18 EXEMPT
126 Assistant Director Community Services $12,475.36 $149,697.60 $5,757.60 $71.97 EXEMPT
1007 Assistant Director Human Resources $12,057.58 $144,684.80 $5,564.80 $69.56 EXEMPT
2001 Assistant Director Library Services $11,932.46 $143,187.20 $5,507.20 $68.84 EXEMPT
10
Assistant Director Planning & Community
Environment $12,779.00 $153,337.60 $5,897.60 $73.72 EXEMPT
143 Assistant Director Public Works $12,631.71 $151,590.40 $5,830.40 $72.88 EXEMPT
111 Assistant Fire Chief $11,931.39 $143,187.20 $5,507.20 $68.84 EXEMPT
168 Assistant Manager Fleet $7,902.11 $94,827.20 $3,647.20 $45.59 EXEMPT
102
Assistant Manager Water Quality Control
Plant $10,211.65 $122,532.80 $4,712.80 $58.91 EXEMPT
30 Assistant to the City Manager $9,868.65 $118,414.40 $4,554.40 $56.93 EXEMPT
118 Chief Building Offical $10,249.60 $122,990.40 $4,730.40 $59.13 EXEMPT
2008 Chief Communications Officer $12,711.76 $152,547.20 $5,867.20 $73.34 EXEMPT
112 Chief Planning Offical $10,834.28 $130,020.80 $5,000.80 $62.51 EXEMPT
TBD Chief Sustainability Officer $9,393.12 $112,715.20 $4,335.20 $54.19 EXEMPT
82 Chief Transportation Offical $10,834.28 $130,020.80 $5,000.80 $62.51 EXEMPT
96 Claims Investigator $6,984.31 $83,803.20 $3,223.20 $40.29 NON-EXEMPT
24 Communication Specialist $7,562.67 $90,750.40 $3,490.40 $43.63 EXEMPT
89 Contracts Administrator $7,902.11 $94,827.20 $3,647.20 $45.59 EXEMPT
186 Coordinator Library Circulation $6,659.29 $79,913.60 $3,073.60 $38.42 NON-EXEMPT
191 Deputy Chief/Fire Marshall $12,875.82 $154,523.20 $5,943.20 $74.29 EXEMPT
9 Deputy City Attorney $9,164.02 $109,969.60 $4,229.60 $52.87 EXEMPT
99 Deputy City Auditor $10,724.77 $128,689.60 $4,949.60 $61.87 EXEMPT
71 Deputy City Clerk $6,022.55 $72,280.00 $2,780.00 $34.75 EXEMPT
55 Deputy City Manager $13,198.72 $158,392.00 $6,092.00 $76.15 EXEMPT
195 Deputy Director Technical Services Div $12,838.58 $154,065.60 $5,925.60 $74.07 EXEMPT
20 Deputy Fire Chief $13,335.16 $160,014.40 $6,154.40 $76.93 EXEMPT
Hourly
FLSA
Status
City of PaloAlto
Management and Professional Compensation
Effective May 18, 2013
Monthly Salary
RangeClass No.
/Job Code Title Approx Annual
Approx
Biwkly
5/3/2013 Management Professional & Confidential Salary Schedule Final Page 1 of 4
Mid Point Hourly
FLSA
Status
City of PaloAlto
Management and Professional Compensation
Effective May 18, 2013
Monthly Salary
RangeClass No.
/Job Code Title Approx Annual
Approx
Biwkly
81
Director Administrative Services/Chief
Financial Officer $15,181.62 $182,187.20 $7,007.20 $87.59 EXEMPT
72 Director Community Services $15,297.99 $183,580.80 $7,060.80 $88.26 EXEMPT
1012 Director Development Services $12,500.00 $150,009.60 $5,769.60 $72.12 EXEMPT
133
Director Human Resource/Chief People
Officer $14,469.09 $173,638.40 $6,678.40 $83.48 EXEMPT
128
Director Information Technology/Chief
Information Officer $15,810.50 $189,716.80 $7,296.80 $91.21 EXEMPT
131 Director Libraries $14,318.95 $171,828.80 $6,608.80 $82.61 EXEMPT
2005 Director Office of Emergency Services $11,232.95 $134,804.80 $5,184.80 $64.81 EXEMPT
49
Director Office of Management and
Budget $13,030.91 $156,374.40 $6,014.40 $75.18 EXEMPT
134
Director Planning & Community
Environment $15,334.80 $184,017.60 $7,077.60 $88.47 EXEMPT
135 Director Public Works/City Engineer $15,530.43 $186,368.00 $7,168.00 $89.60 EXEMPT
121 Director Utilities $19,906.07 $238,867.20 $9,187.20 $114.84 EXEMPT
2002 Division Head Library Services $9,370.93 $112,444.80 $4,324.80 $54.06 EXEMPT
123
Division Manager Cubberly Center &
Human Services $10,072.37 $120,868.80 $4,648.80 $58.11 EXEMPT
172 Division Manager Open Space & Golf $10,072.37 $120,868.80 $4,648.80 $58.11 EXEMPT
1005 Executive Assistant to the City Manager $6,485.63 $77,833.60 $2,993.60 $37.42 EXEMPT
139 Fire Chief $15,444.86 $185,328.00 $7,128.00 $89.10 EXEMPT
163 Hearing Officer $9,164.02 $109,969.60 $4,229.60 $52.87 EXEMPT
101 Human Resources Representative $5,875.66 $70,512.00 $2,712.00 $33.90 EXEMPT
90 Landscape Architect Park Planner $8,722.45 $104,665.60 $4,025.60 $50.32 EXEMPT
69 Legal Services Administrator $8,099.66 $97,198.40 $3,738.40 $46.73 EXEMPT
171 Management Analyst $7,902.11 $94,827.20 $3,647.20 $45.59 EXEMPT
79 Manager Accounting $10,250.25 $123,011.20 $4,731.20 $59.14 EXEMPT
2007 Manager Airport $11,235.09 $134,825.60 $5,185.60 $64.82 EXEMPT
38 Manager Communications $8,509.70 $102,107.20 $3,927.20 $49.09 EXEMPT
154 Manager Community Services $7,521.34 $90,251.20 $3,471.20 $43.39 EXEMPT
169 Manager Community Services Sr Program $7,902.11 $94,827.20 $3,647.20 $45.59 EXEMPT
1013 Manager Development Center $8,940.51 $107,286.40 $4,126.40 $51.58 EXEMPT
63 Manager Economic Development $10,834.28 $130,020.80 $5,000.80 $62.51 EXEMPT
44 Manager Employee Benefits $9,258.74 $111,113.60 $4,273.60 $53.42 EXEMPT
45 Manager Employee Relations & Training $10,249.60 $122,990.40 $4,730.40 $59.13 EXEMPT
93 Manager Environmental Control Program $9,393.12 $112,715.20 $4,335.20 $54.19 EXEMPT
127 Manager Fleet $9,493.31 $113,921.60 $4,381.60 $54.77 EXEMPT
5/3/2013 Management Professional & Confidential Salary Schedule Final Page 2 of 4
Mid Point Hourly
FLSA
Status
City of PaloAlto
Management and Professional Compensation
Effective May 18, 2013
Monthly Salary
RangeClass No.
/Job Code Title Approx Annual
Approx
Biwkly
32 Manager Information Technology $10,479.00 $125,756.80 $4,836.80 $60.46 EXEMPT
2006 Manager Information Technology Security $9,501.54 $114,025.60 $4,385.60 $54.82 EXEMPT
57 Manager Investments Debts & Projects $10,249.60 $122,990.40 $4,730.40 $59.13 EXEMPT
158 Manager Laboratory Services $8,940.51 $107,286.40 $4,126.40 $51.58 EXEMPT
78 Manager Library Services $7,521.34 $90,251.20 $3,471.20 $43.39 EXEMPT
92 Manager Maintenance Operations $7,902.11 $94,827.20 $3,647.20 $45.59 EXEMPT
51 Manager Planning $9,393.12 $112,715.20 $4,335.20 $54.19 EXEMPT
95
Manager Purchasing & Contract
Administration $10,250.25 $123,011.20 $4,731.20 $59.14 EXEMPT
103 Manager Real Property $10,250.25 $123,011.20 $4,731.20 $59.14 EXEMPT
TBD Manager Revenue Collections $9,627.95 $115,544.00 $4,444.00 $55.55 EXEMPT
198 Manager Risk & Benefits $10,249.60 $122,990.40 $4,730.40 $59.13 EXEMPT
160 Manager Solid Waste $10,368.25 $124,425.60 $4,785.60 $59.82 EXEMPT
86 Manager Urban Forestry $8,302.15 $99,632.00 $3,832.00 $47.90 EXEMPT
178 Manager Water Quality Control Plant $11,537.84 $138,444.80 $5,324.80 $66.56 EXEMPT
39 Manager Watershed Protection $10,368.00 $124,425.60 $4,785.60 $59.82 EXEMPT
1008 Office of Emergency Services Coordinator $8,509.70 $102,107.20 $3,927.20 $49.09 EXEMPT
100 Performance Auditor $7,902.11 $94,827.20 $3,647.20 $45.59 EXEMPT
148 Police Chief-Adv $17,174.35 $206,086.40 $7,926.40 $99.08 EXEMPT
2003 Principal Management Analyst $10,167.00 $122,012.80 $4,692.80 $58.66 EXEMPT
77 Project Manager $6,485.63 $77,833.60 $2,993.60 $37.42 EXEMPT
2009 Project Manager Trees $7,955.44 $95,472.00 $3,672.00 $45.90 NON-EXEMPT
166 Public Safety Manager I $7,289.69 $87,484.80 $3,364.80 $42.06 EXEMPT
TBD Public Safety Manager II $8,099.66 $97,198.40 $3,738.40 $46.73 EXEMPT
74 Safety Officer $7,562.67 $90,750.40 $3,490.40 $43.63 EXEMPT
117 Senior Accountant $8,099.66 $97,198.40 $3,738.40 $46.73 EXEMPT
152 Senior Assistant City Attorney $14,215.49 $170,580.80 $6,560.80 $82.01 EXEMPT
11 Senior Deputy City Attorney $10,115.36 $121,388.80 $4,668.80 $58.36 EXEMPT
187 Senior Engineer $10,368.25 $124,425.60 $4,785.60 $59.82 EXEMPT
106 Senior Executive Assistant $9,258.74 $111,113.60 $4,273.60 $53.42 EXEMPT
157 Senior Human Resources Administrator $7,902.11 $94,827.20 $3,647.20 $45.59 EXEMPT
14 Senior Management Analyst $9,250.00 $111,009.60 $4,269.60 $53.37 EXEMPT
130 Senior Performance Auditor $8,722.45 $104,665.60 $4,025.60 $50.32 EXEMPT
53 Senior Project Manager $10,893.14 $130,728.00 $5,028.00 $62.85 EXEMPT
33 Senior Technologist $9,501.54 $114,025.60 $4,385.60 $54.82 EXEMPT
70 Staff Assistant to the City Manager $7,002.07 $84,032.00 $3,232.00 $40.40 EXEMPT
155 Superintendent Animal Services $8,302.15 $99,632.00 $3,832.00 $47.90 EXEMPT
83 Superintendent Community Services $9,164.02 $109,969.60 $4,229.60 $52.87 EXEMPT
161 Supervisor Facilities Management $7,709.37 $92,518.40 $3,558.40 $44.48 EXEMPT
113 Supervisor Inspection and Surveying $8,302.15 $99,632.00 $3,832.00 $47.90 EXEMPT
174 Supervisor Public Works $6,984.31 $83,803.20 $3,223.20 $40.29 NON-EXEMPT
5/3/2013 Management Professional & Confidential Salary Schedule Final Page 3 of 4
Mid Point Hourly
FLSA
Status
City of PaloAlto
Management and Professional Compensation
Effective May 18, 2013
Monthly Salary
RangeClass No.
/Job Code Title Approx Annual
Approx
Biwkly
62 Supervisor Recycling Program $6,659.29 $79,913.60 $3,073.60 $38.42 EXEMPT
181
Supervisor Water Quality Control
Operations $8,509.70 $102,107.20 $3,927.20 $49.09 EXEMPT
184 Veterinarian $8,099.66 $97,198.40 $3,738.40 $46.73 EXEMPT
146 Warehouse Supervisor $6,984.31 $83,803.20 $3,223.20 $40.29 EXEMPT
Confidential Classifications
Class No.
/Job Code Title Control Point Approx Annual
Approx
Biwkly Hourly
FLSA
Status
905 Human Resource Assistant-Confidential $5,066.56 $60,798.40 $2,338.40 $29.23 NON-EXEMPT
903 Legal Secretary-Confidential $5,193.23 $62,316.80 $2,396.80 $29.96 NON-EXEMPT
67 Secretary to City Attorney $6,173.11 $74,068.80 $2,848.80 $35.61 NON-EXEMPT
1004 Senior Legal Secretary - Confidential $5,732.35 $68,785.60 $2,645.60 $33.07 NON-EXEMPT
5/3/2013 Management Professional & Confidential Salary Schedule Final Page 4 of 4
Citywide Average Salary and Benefits
Utilities
CATEGORY Mgmt/
Professional
Professional
Fire Chief
Association
Fire Fighters
Police Mgmt PAPUA SFIU
ASSOC ration
Full -Time Equivalent (fTE)
203.85
41.00
4.00
100.08
7.00
82.00
580.50
%of City
20.0%
4.0%
0.4%
9.8%
0.7%
8.1%
57.0%
Salary(1), (2)
$114,884
$128,352
$146,207
$99,585
$168,028
$108,953
° $72,814
In -Lieu Holiday
n/a
n/a
n/a
$4,788
n/a
$3,295
$3,781
incentive Pay (3)
n/a
n/a
n/a
$768
n/a
$3,256
$343
Overtime (Average)
n/a
n/a
n/a
$14,244
n/a
$14,074
$4,562
Management Leave (80 Hours)
$4,419
$4,937
$5,523
n/a
$5,463
n/a
n/a
Pension Employer Portion
Mho 1469ry9.fep 99.94%
$28,261
$31,575
$48,892
$33,301
$56,189
$36,434
$17,912
Pension Employee Portion Paid by City
Mann 911;191U019
PMA BM PAPOAOri
FO191.11691 IAFF B% (4)
$0
$0
$5,702
$0
$15,123
$ 0
$A
Medkare
$1,666
$1,861
$2,120
$1,444
$2,436
$1,580
$1,056
Medical
$15,175
$17,058
$13,709
$16,224
$20,690
$15,843
$15,502
Medical 1096 Employee Contribution 45)
-$1,517
-$1,707
-$1,371
-$1,612
-$2,069
-$1,584
-$1,550
Dental/Vision
$1,953
$2,412
$2,357
$2,205
$2,490
$1,962
$1,901
Retiree Medical (6)
$4,347
$4,347
$8,500
$8,5i]D
$6,180
$8,180
$4,347
Workers' Comp
$1,527
$1,093
$0
$12,134
$0
$12,101
$1,957
LIFE/LTD/SUl
$458
$458
$458
$458
$458
$458
$458
Nen-salary Benefits (7)
$3,054
$4,054
$4,054
$54
$4,054
$54
$54
$123,137
Average Salary R. llenefits $174,226 $194,450
$23&252
$192,083
$232,042
$204,606
1.5alary does not include attrition savings, or adjustments to pay.
2. Salary is calculated at actual pay rate and includes any working out of class premiums.
3. Incentive pay includes; Fair Labor and Standards Act Charges, Night Shift Differentials, 6i -lingual pay, K-9 pay and Field Training premiums
4. The City will pay 3.996 of FCA employee contributions beginning April 2013 - March 2014.
5. 10%of the Medina] costs paid by employees are applied to Retiree Medical.
6. Annual amount incurred for active employees. .
7. Non -salary Benefits include professional development for Mgmt, Utilities Mgmt, FCA and PMA; tuition reimbursement for FCA
and PMA; and management excess benefit for Mgmt, Utilities Mgmt, FCA and PMA. Does not include administrative fees
for General Benefits and Workers' Compensation Funds.
City of Palo Alto - 26 -
Fiscal Year 2014 Proposed Budget
ATTACHMENT C
Benchmarking Benefit Data Collection
The following information was collected for each of the benchmarked classifications:
1. Monthly Base Salary: The top of the salary range and/or control point. All figures are presented
on a monthly basis.
2. Employee Retirement – This includes several figures, 1) the amount of the employee’s State
retirement (PERS) contribution that is contributed by each agency, 2) the amount of the agency’s Social
Security contribution, and 3) any alternative retirement plan, either private or public where the
employee’s contribution is made by the agency on behalf of the employee.
In addition to the amount of the employer paid member contribution of PERS, we collected information
on enhanced PERS benefits. With the help of contract experts at CalPERS, we were able to determine an
average value that agencies have to pay for each of the implemented contract provisions, including:
Formulas (base formulas are 2% at age 55 or 2% at age 60):
2.5% at age 55 (Section 21354.4): this formula provides to local miscellaneous members 2.5% of
pay at age 55 for each year of eligible service credited with that employer; average value = 3.8%
2.7% at age 55 (Section 21354.5): this formula provides to local miscellaneous members 2.7% of
pay at age 55 for each year of eligible service credited with that employer; average value =
6.75%
3% at age 60 (Section 21354.3): this formula provides to local miscellaneous members 3% of pay
at age 60 for each year of eligible service credited with that employer; average value = 9.05%.
3% at age 50 (Section 21362.2): this formula provides to local safety members 3% of pay at age
50 for each year of service credited with that employer; average value = 13.65%.
3% at age 55 (Section 21363.1): this formula provides to local safety members 3% of pay at age
55 for each year of service credited with that employer; average value = 6.85%.
Additional Optional Enhanced Benefit Provisions
One‐Year Final Compensation (Section 20042): the period determining the average monthly pay rate
when calculating retirement benefits; base period is thirty‐six (36) highest paid consecutive months;
one‐year final compensation is based on twelve (12) months highest paid consecutive months; average
value = 1.2%.
Employer Paid Member Contribution (Section 20636(c)(4)): the reporting of the value of the
employer paid member contribution to CalPERS as special compensation; average value =
employer paid member contribution * employer paid member contribution.
Employer Paid Member Contribution Converted to Payrate During Final Compensation Period
(Section 20692): Increase in payrate of the members by the amount of the employer paid
member contributions; average value = 1.8%.
3. Retiree Health –This is the average cost, per employee, to fund the future benefit of health
coverage at retirement. Calculation: Normal Cost / Covered Payroll.
4. Insurance – This is the maximum amount paid by the agency for employees and dependents
for a cafeteria or flexible benefit plan and/or health, dental, vision, life, long‐term disability, and
employee assistance insurance.
5. Administrative/Personal Leave – Administrative leave is normally the number of days available
to management to reward for extraordinary effort (in lieu of overtime). Personal leave may be available
to other groups of employees to augment vacation or other time off.
6. Automobile – This category includes either the provision of an auto allowance or the provision
of an auto for personal use, if applicable. If a car is provided to any classification for commuting and
other personal use, the average monthly rate is estimated at $450.
7. Deferred Compensation – We captured deferred compensation provided to all members of a
classification with or without the requirement for an employee to provide a matching or minimum
contribution.
8. Other – This category includes any additional benefits available to all in the class.
Please note that all of the above benefit elements may be negotiated benefits provided to all members
of each comparator class. As such, they represent an on‐going cost for which an agency must budget.
Other benefit costs, such as sick leave, tuition reimbursement, and reimbursable mileage are usage‐
based and cannot be quantified on an individual employee basis.
Class No.
/Job Code Title Grade Code
Current
Control Point
(Approx
Annual)
New Mid-Point
(Approx
Annual)
Percent Change from
Current Control Point
to New Mid-Point
163 Hearing Officer 43 29 90,752.06 109,968.46 21.17%
195 Deputy Director Technical Services 28 Division 132,807.33 154,063.26 16.00%
100 Performance Auditor 47 23 82,032.45 94,825.46 15.59%
50 14 Adm Pln & Comm Envrn Senior 40 TBD 97,886.26 111,000.21 13.40%
148 Police Chief‐Adv 15 TBD 183,925.08 206,092.61 12.05%
121 Dir Director Utilities 9 Director 213,297.39 238,873.25 11.99%
108 Asst City Atty Assistant City
Attorney
26 Assistant
Director
139,513.13 155,078.36 11.16%
2001 Assistant Director, Library Services 29 Assistant
Director
129,293.88 143,189.76 10.75%
132 Assistant Police Chief ‐ Adv 19 Assistant
Director
166,464.48 182,974.50 9.92%
2003 Principal Financial Management
Analyst
35 TBD 111,104.91 122,004.23 9.81%
73 Asst Assistant Director Adm Svcs
Administrative Services
25 Assistant
Director
143,176.63 156,371.22 9.22%
131 Dir Director Libraries 21 Director 158,323.32 171,827.71 8.53%
134 Dir Plan/Comm Envir Director
Planning & Community
Environment
18 Director 170,599.27 184,017.94 7.87%
99 Deputy City Auditor 32 Division
Manager
119,845.90 128,697.51 7.39%
2002 Division Head, Library Services 37 Division
Manager
105,577.51 112,451.33 6.51%
128 Dir I Director Information
Technology/Chief Information
Officer
16 Director 179,454.84 189,726.36 5.72%
171 Management Analyst 65 TBD 90,066.45 94,825.46 5.28%
152 Sr Asst City Atty Senior Assistant
City Attorney
20 Assistant
Director
162,243.91 170,586.19 5.14%
102 Asst Mgr WQCP Assistant
Manager Water Quality Control
Plant
33 Division
Manager
116,867.88 122,539.98 4.85%
1012 Director Development Services
Director
25 Director 143,178.24 150,000.29 4.76%
Attachment D
Salary Schedule
City of PaloAlto
Management and Professional Compensation
NOTE: Positive percentage changes reflect increase in current control point salary, while (negative)
percentage changes denote decrease in current control point.Page 1 of 5
Class No.
/Job Code Title Grade Code
Current
Control Point
(Approx
Annual)
New Mid-Point
(Approx
Annual)
Percent Change from
Current Control Point
to New Mid-Point
Attachment D
Salary Schedule
City of PaloAlto
Management and Professional Compensation
113 Supv Insp/Surv Pw Supervisor
Inspection and Surveying
41 25 95,465.30 99,626.00 4.36%
130 Senior Performance Auditor 39 27 100,392.86 104,669.56 4.26%
93 Mgr Env Manager Environmental
Control Prog Program
36 30 108,383.97 112,717.67 4.00%
135 Dir Pw/City Engr Director Public
Works/City Engineer
16 Director 179,447.42 186,365.47 3.85%
139 Fire Chief 16 Director 179,447.42 185,338.71 3.28%
79 Mgr Manager Accounting 32 Division
Manager
119,845.90 123,003.24 2.63%
95 Mgr Pur & Cntr Admin Manager
Purchasing & Contract
Administration
32 Division
Manager
119,845.90 123,003.24 2.63%
72 Dir Comm Svcs Director
Community Services
16 Director 179,447.42 183,576.27 2.30%
146 Supervisor Warehouse Supv 50 18 82,032.64 83,811.89 2.17%
109 Asst Assistant City Clerk 44 21 88,459.65 90,256.24 2.03%
TBD Public Safety Manager II 24 95,465.30 97,196.11 1.81%
155 Supt Superintendent Animal
Services
40 25 97,886.26 99,626.00 1.78%
133 Dir Director Human
Resources/Chief People Officer
18 Director 170,599.27 173,629.45 1.78%
9 Deputy City Attorney 36 29 108,383.97 109,968.46 1.46%
11 Sr. Senior Deputy City Attorney 32 33 119,845.90 121,384.61 1.28%
39 Manager Watershed Protection
Manager
62 30 122,959.38 124,416.24 1.18%
160 Mgr Manager Solid Waste 31 34 122,995.23 124,419.22 1.16%
187 Sr Senior Engineer 31 34 122,995.23 124,419.22 1.16%
53 Sr Senior Project Manager 29 36 129,293.88 130,717.94 1.10%
20 Deputy Fire Chief 21 Assistant
Director
158,323.32 160,022.20 1.07%
143 Asst Dir Public Works 23 150,525.02 151,580.85 0.70%
49 Director, Office of Management
and Budget
88 Assistant
Director
156,032.64 156,371.22 0.22%
103 Mgr Manager Real Property 31 Division
Manager
122,995.23 123,003.24 0.01%
126 Assistant Director Community
Services
90 Assistant
Director
149,704.32 149,704.32 0.00%
111 Assistant Fire Chief 25 TBD 143,176.63 143,176.63 0.00%
115 Asst Assistant Build Building
Official
33 TBD 116,867.88 116,867.88 0.00%
24 Communication Specialist 43 TBD 90,752.06 90,752.06 0.00%
NOTE: Positive percentage changes reflect increase in current control point salary, while (negative)
percentage changes denote decrease in current control point.Page 2 of 5
Class No.
/Job Code Title Grade Code
Current
Control Point
(Approx
Annual)
New Mid-Point
(Approx
Annual)
Percent Change from
Current Control Point
to New Mid-Point
Attachment D
Salary Schedule
City of PaloAlto
Management and Professional Compensation
186 Coord Lib Circ Coordinator Library
Circulation
48 TBD 79,911.48 79,911.48 0.00%
191 Deputy Chief/Fire Marshall 22 TBD 154,509.89 154,509.89 0.00%
44 Mgr Emp Manager Employee
Benefits
35 TBD 111,104.91 111,104.91 0.00%
45 Mgr Manager Employee Relations
& Training
31 Division
Manager
122,995.23 122,995.23 0.00%
57 Mgr Inv Debt & Proj Manager
Investments Debts & Projects
31 TBD 122,995.23 122,995.23 0.00%
198 Mgr Manager Risk & Benefits 31 TBD 122,995.23 122,995.23 0.00%
2009 Project Mgr Manager Trees 41 TBD 95,465.30 95,465.49 0.00%
74 Safety Officer 43 TBD 90,752.06 90,752.24 0.00%
33 Sr. Senior Technologist 34 27 114,018.53 114,018.75 0.00%
106 Sr. Senior Executive Assistant 35 TBD 111,104.91 111,104.91 0.00%
70 Staff Asst To Cm Assistant to the
City Manager
46 TBD 84,024.89 84,024.89 0.00%
62 Supv Supervisor Recycling Prog
Program
48 TBD 79,911.48 79,911.48 0.00%
2007 Manager Airport Manager 91 Division
Manager
134,822.88 134,821.33 0.00%
2008 Chief Communications Officer 92 Assistant
Director
152,547.12 152,541.46 0.00%
127 Manager Fleet Manager 34 Division
Manager
114,018.53 113,919.91 (0.09%)
14 Senior Management Analyst 35 TBD 111,104.91 111,000.21 (0.09%)
96 Claims Investigator 46 18 84,024.89 83,811.89 (0.25%)
32 Mgr, IT Manager, Information
Technology
30 Division
Manager
126,251.59 125,748.24 (0.40%)
78 Manager Library Services Manager 43 21 90,752.06 90,256.24 (0.55%)
169 Comm Manager Community
Services Senior Sr Program
Manager
43 23 95,465.46 94,825.46 (0.67%)
168 Asst Assistant Manager Fleet Mgr 41 23 95,465.30 94,825.46 (0.67%)
69 Legal Services Administrator 40 24 97,886.26 97,196.10 (0.71%)
1008 OES Office of Emergency Services
Coordinator
38 26 102,920.85 102,116.65 (0.78%)
90 Landscape Architect/Park Planner 37 27 105,577.51 104,669.56 (0.86%)
30 Asst Assistant To The City Mgr
Manager
32 119,845.90 118,424.00 (1.19%)
NOTE: Positive percentage changes reflect increase in current control point salary, while (negative)
percentage changes denote decrease in current control point.Page 3 of 5
Class No.
/Job Code Title Grade Code
Current
Control Point
(Approx
Annual)
New Mid-Point
(Approx
Annual)
Percent Change from
Current Control Point
to New Mid-Point
Attachment D
Salary Schedule
City of PaloAlto
Management and Professional Compensation
63 Mgr Manager Economic
Development and Redevelopment
28 Division
Manager
132,807.33 130,011.61 (2.11%)
71 Deputy City Clerk 51 12 74,105.62 72,270.73 (2.48%)
190 Accountant 47 16 82,032.45 79,773.36 (2.75%)
1009 171 Administrator, Refuse
Management Analyst
40 TBD 97,886.26 94,825.46 (3.13%)
157 Senior Human Resources
Administrator
40 23 97,886.26 94,825.46 (3.13%)
154 Manager Community Services
Manager
40 21 93,215.94 90,256.24 (3.18%)
117 Sr Senior Accountant 39 24 100,392.86 97,196.10 (3.18%)
181 Supv Wqc Oper Supervisor Water
Quality Control Operations
37 26 105,577.51 102,116.65 (3.28%)
1013 Manager Development Center
Manager
35 28 111,104.04 107,286.30 (3.44%)
83 Superintendent Community
Services Superintendent
40 29 114,018.70 109,968.46 (3.55%)
1007 Assistant Director Human
Resources
23 Assistant
Director
150,525.02 144,691.21 (3.88%)
112 Chief Plg Planning Official 27 Division
Manager
136,106.71 130,011.61 (4.48%)
82 Chief Transp Off Transportation
Offical
27 Division
Manager
136,106.71 130,011.61 (4.48%)
2005 Director Office of Emergency
Services Director
61 Division
Manager
141,942.24 134,795.69 (5.04%)
1001 10 Assistant Director Planning &
Comm Env Community
Environment
20 Assistant
Director
162,243.91 153,348.29 (5.48%)
161 Supv Facil Mgt Supervisor Facilities
Management
40 22 97,886.26 92,512.64 (5.49%)
89 Contracts Administrator 39 23 100,392.86 94,825.46 (5.55%)
55 Deputy City Mgr Spec Proj
Manager
18 Assistant
Director
170,599.27 158,384.94 (7.16%)
107 Asst Assistant City Mgr
Manager/Chief Operating Officer
14 Director 205,413.31 190,061.93 (7.47%)
178 Mgr Wqc Manager Water Quality
Control Plant
23 Division
Manager
150,525.02 138,454.34 (8.02%)
38 Manager Communications
Manager
35 26 111,104.91 102,116.65 (8.09%)
158 Mgr Manager Lab Services 33 28 116,867.88 107,286.30 (8.20%)
51 Mgr Manager Planning 31 30 122,995.23 112,717.67 (8.36%)
NOTE: Positive percentage changes reflect increase in current control point salary, while (negative)
percentage changes denote decrease in current control point.Page 4 of 5
Class No.
/Job Code Title Grade Code
Current
Control Point
(Approx
Annual)
New Mid-Point
(Approx
Annual)
Percent Change from
Current Control Point
to New Mid-Point
Attachment D
Salary Schedule
City of PaloAlto
Management and Professional Compensation
166 Supv Police Service Public Safety
Manager I
41 20 95,465.30 87,476.50 (8.37%)
123 Cub Ctr & Hum Svc Div Mgr
Division Manager Cubberly Center
& Human Services
28 Division
Manager
132,807.33 120,868.68 (8.99%)
81 Dir Adm Svcs Director
Administrative Services/Chief
Financial Officer
15A Director 200,472.03 182,179.80 (9.12%)
172 Open Spc & Parks Div Mgr Division
Manager Open Space & Parks
78 Division
Manager
133,257.24 120,868.68 (9.30%)
101 Human Resources Rep
Representative
49 11 77,940.55 70,508.03 (9.54%)
91 171 HR Business Management Analyst 37 TBD 105,577.51 94,825.46 (10.18%)
86 Urban Forester 35 25 111,104.91 99,626.00 (10.33%)
2006 Mgr, IT Manager Information
Technology Security
89 27 127,901.28 114,018.70 (10.85%)
905 Human Rsrce Asst Cnf Resource
Assistant‐Confidential
82 5 68,899.58 60,798.85 (11.76%)
76 Admin Administrative Assistant 70 10 78,176.13 68,788.32 (12.01%)
1004 Senior Legal Secretary ‐
Confidential
85 10 78,176.13 68,788.32 (12.01%)
903 Legal Sec‐Conf Secretary‐
Confidential
80 6 71,084.83 62,318.82 (12.33%)
1006 Division Manager, Recreations &
Golf
26 Division
Manager
139,513.13 120,868.68 (13.36%)
67 Secretary to City Attorney 67 13 86,295.91 74,077.50 (14.16%)
1005 Executive Assistant to the City
Manager
43 15 90,752.06 77,827.67 (14.24%)
174 Supv Supervisor Public Works 40 18 97,886.26 83,811.89 (14.38%)
92 Mgr Maint Oper Manager
Maintenance Operations
35 23 111,104.91 94,825.46 (14.65%)
184 Veterinarian 33 24 116,867.88 97,196.10 (16.83%)
77 Project Mgr Manager Facilities 41 15 95,465.30 77,827.67 (18.48%)
118 Chief Bld Building Official 26 30 139,513.13 112,717.67 (19.21%)
TBD Chief Sustainability Officer 30 130,011.61 N/A
TBD Manager Revenue Collections Division Manager 115,535.62 N/A
NOTE: Positive percentage changes reflect increase in current control point salary, while (negative)
percentage changes denote decrease in current control point.Page 5 of 5