HomeMy WebLinkAbout1999-08-09 City Council (14)Manager’s Repo t
7
TO:HONORABLE CITY COUNCIL
FROM:CITY MANAGER DEPARTMENT: HUMAN RESOURCES
DATE:AUGUST 9, 1999 CMR:340:99
SUBJECT:APPROVAL OF COMPENSATION PLANS AND RESOLUTIONS
FOR MANAGEMENT, CONFIDENTIAL, AND HOURLY
PERSONNEL; AND BUDGET AMENDMENT ORDINANCE FOR
$432,200
RECOMMENDATION
This report recommends Council approval of the attached resolutions and budget
amendment ordinance adopting compensation plans for Management and Confidential
personnel and Hourly employees, effective with the pay period including July 1, 1999
through June 30, 2000. Also recommended is a resolution amending the Merit System Rules
and Regulations.
DISCUSSION
Management and Confidential Employees: Effective with the pay period including July
1, 1999, the compensation plan provides for a 4.0 percent control point increase to all
Management and Confidential classifications. Under the Management Compensation Plan,
control point adjustments are not automatically passed on to employees. Individual salary
setting is authorized by department heads, according to employee performance.
Amendments to the Management and Confidential Compensation Plan include modification
to various sections related to Life and Long Term Disability Insurance (full text is attached
with changes highlighted); increase in amount of Professional Development Allowance of
$500 per year; increase in amount of Excess Benefit Reimbursement of $300 per year; and
in car allowance for eligible employees of $25 per month. Attachment A recommends control
point adjustments to eight classifications, based upon external agency salary data, as well as
internal equities. Also included is language to provide for a 2 percent pay differential for
Fire Department employees who qualify for and maintain an Emergency Medical Technician
certificate. This benefit is available to non-management firefighters and Fire Chiefs’
Association members.
Hourly Employees: The salary ranges for 25 hourly classifications will be increased by 2.0
percent, effective with the pay period including July 1, 1999, in order to maintain salary
CMR:340:99 Page 1 of 2
ranges in relationship to other compensation plans. In addition, language (additions
highlighted) provided by an amendment (CMR:338:99) to the Public Employees’ Retirer~aent
System agreement creates ten new classifications and pay ranges which are exempt from
PERS membership. :
RESOURCE IMPACT
The annual cost for the proposed Management and Confidential Compensation Plan increase
is $1,122,100. Funding of $689,900 is provided in the 1999-2000 Budget; the attached
Budget Amendment Ordinance (BAO) appropriates an additional $432,200 from the General
Fund Budget Stabilization Reserve.
POLICY IMPLICATIONS
The action recommended by this report is consistent with City Council direction.
ENVIRONMENTAL REVIEW
This is not a project under the California Environmental Quality Act (CEQA).
ATTACHMENTS
Attachment A - Special Control Point Adjustments
Attachment B - Budget Amendment Ordinance
Resolution Adopting a Compensation Plan for Management and Confidential Personnel
Resolution Adopting a Compensation Plan for Hourly Employees
PREPARED BY: Susan B. Ryerson, Manager of Employee Relations & Compensation
DEPARTMENT HEAD:
JLrNE ~LEMING
City Manager
CMR:340:99 Page 2 of 2
Attachment A
SPECIAL ADJUSTMENTS
Effective "/-1-99
Class
Number
098
153
081
137
192
179
144
Title
Admin, Special Events
Coord Child Care
Director Adm Svcs
Dir Rec & Open Spc
Mgr, Comm Svc Fac
Mgr, FId & Cust Svcs
Supt Recreation
Control Point
Adjustments
TO:FROM:
42 43
44 45
16 18
26 27
42 43
35 38
34 35
H:~’nsword~ng mnt-confkspladj99.doc
ORDINANCE NO.
ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO
AMENDING THE BUDGET FOR THE FISCAL YEAR 1999-00 TO
PROVIDE AN ADDITIONAL APPROPRIATION OF $432,200 FOR
SALARY AND BENEFIT INCREASES RETROACTIVE TO JULY i, 1999
FOR MANAGEMENT AND CONFIDENTIAL EMPLOYEES
WHEREAS, pursuant to the provisions of Section 12 of Article
III of the Charter of the City of Palo Alto, the Council on June 28,
1999 did adopt a budget for fiscal year 1999-00; and
WHEREAS, the City Council has authorized salary and benefits
adjustments for the Management and Confidential employees for fiscal
year 1999-00; and
WHEREAS, additional funding of $432,200 is required, in
addition to the appropriation included in the 1999-00 Adopted
Budget, for such increases; and
WHEREAS, the additional appropriation of funds from the
General Fund Budget Stabilization Reserve is a one-time cost. There
wil! be future year Genera! Fund ongoing costs as a result of
negotiated salary increases; and
WHEREAS, City Council authorization is needed to amend the
1999-00 budget as hereinafter set forth.
NOW, THEREFORE, the Council of the City of Palo Alto does
ORDAIN as fol!ows:
SECTION i.The sum of Four Hundred Thirty Two Thousand Two
Hundred Dollars ($432,200) is hereby appropriated to the salary
contingency in the General Fund, and the Budget Stabilization
Reserve is correspondingly reduced.
SECTION 2. This transaction will reduce the
Stabilization Reserve from $19,901,539 to $19,469,339.
Budget
SECTION 3. As specified in Section 2.28.080(a) of the Palo
Alto Municipal Code, a two-thirds vote of the City Council is
required to adopt this ordinance.
SECTION 4. The Council of the City of Palo Alto hereby finds
that this is not a project under the California Environmental
Quality Act and, therefore, no environmental impact assessment is
necessary.
SECTION 5. As provided in Section 2.04.350 of the Palo Alto
Municipal Code, this ordinance shall become effective upon adoption.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
ATTEST:
City Clerk
APPROVED AS TO FORM:
Senior Asst. City Attorney
APPROVED:
Mayor
City Manager
Director of
Services
Administrative
Director of Human Resources
Attachment B
Budget Amendment Ordinances Impacting General Fund Reserves Approved To Date in 1999-00
Estimated Beginning Budget Stabilization Reserve (BSR)
Balance
Net Cost
Placeholders Impact on the
Already in the 1999.General Fund
00 Adopted Budget BSR
$18,877,888
Estimated
Future Year
Ongoing Costs
Adopted Budget Addition to BSR $1,214,000
Downtown Urban Design Improvements. CIP 19608
Downtown Parking Structure Feasibility Study. CIP 19530
Salary and Benefit Increases Retroactive to July 1, 1999 for
Management and Confidential Employees
(S120.349)
($70,000)
(S432,200)
($120,349)
(570,000)
(S432,200)($432,200)
Total BAOs ($622,549)($432,200)
BSR Balance After BAO’s $19,469,339
RESOLUTION NO.
RESOLUTION OF THE COUNCIL OF THE CITY.OF PALO ALTO
ADOPTING A COMPENSATION PLAN FOR MANAGEMENT AND
CONFIDENTIAL PERSONNEL AND COUNCIL APPOINTED
OFFICERS AND RESCINDING RESOLUTION NOS. 7825,
7831, 7836 and 7873
The Council of the City of Palo Alto does RESOLVE as
follows:
.~..~CTION i. Pursuant to the provisions of Section 12 of
Article III of the Charter of the City of Palo Alto, the
Compensation Plan, as set forth in Exhibit "A" attached hereto and
made a part hereof by reference, is hereby adopted for management
and confidential personnel and Council appointed officers effective
retroactive to the pay period including July i, 1999.
SECTION 2. The Compensation Plan as adopted herein shall
be administered by the City Manager in accordance with the Merit
System Rules and Regulations.
SECTION 3. The Compensation Plan shall continue in effect
until amended or revoked by the Council.
SECTION 4. The Director of Administrative Services hereby
is authorized to implement the Compensation Plan adopted herein in
his preparation of forthcoming payrolls. He is further authorized
to make changes in the titles of employee classifications
identified in the Table of Authorized Personnel contained in the
1999-2000 budget, if such titles have been changed in the
Compensation Plan.
SECTION 5. Resolution Nos. 7825, 7831, 7836, and 7873 are
hereby rescinded.
II
II
II
II
II
II
II
II
II
1
990804 sdl 0032230
SECTION 6. The Council finds that this is not a project
under the California Environmental Quality Act, and, therefore, no
environmental impact assessment is necessary.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:APPROVED:
City Clerk Mayor
APPROVED AS TO FORM:
Senior Asst. City Attorney
City Manager
Director of Human Resources
Director of
Administrative Services
2
990804 sdl 0032230
EXHIBIT "A"
CITY OF PALO ALTO
COMPENSATION PLAN
Management and Confidential Personnel
And Council Appointees
Effective:Pay period including July 1, 1999
through June 30, 2000
SECTION I.
COMPENSATION PLAN FOR THE CITY OF PALO ALTO
Management and Confidential Personnel
COMPENSATION
This section applies to all regular management and confidential positions except Council Members
and Council-appointed officers. Notwithstanding this exception, the Council may authorize Variable
Management Compensation for Council-appointed officers. Each Council-appointed officer shall be
the responsible decision-maker under this Plan for those employees in departments under his/her
control.
Ao Management and Confidential Compensation Policy
The City’s policy for management and confidential compensation is to establish and maintain a
general structure based on marketplace norms and internal job alignment with broad
compensation grades and ranges. Structures and ranges will be reviewed annually and updated
as necessary based on marketplace survey data, internal relationships, and City financial
conditions.
Individual compensation adjustments will be considered by the Council-appointed officer based
on (1) performance factors including achievement of predetermined objectives; (2) pay structure
adjustments; and (3) City financial conditions.
Basic Plan Elements
Structure. The compensation plan includes separate multi-grade structures for both
management and confidential employees. Each grade will have a control point which is used
for budgetary purposes. All management and confidential positions will be assigned an
appropriate pay grade based on salary survey data and internal relationships. All positions
assigned to a pay grade will receive compensation which is no less than 25% below the control
point and no more than 15% above the control point. Actual salary within the range is
determined by performance. The normal working range within which most actual salaries will
fall will be within + 5% of the control point.
As needed competitive marketplace studies will be made of 10-15 agencies similar to Palo Alto
in number of employees, population and services provided. These studies will focus on general
salary trends for groups of management positions such as first line supervisors, administrative,
confidential, professional and top management. Periodically, studies will more specifically
include position-by-position comparisons using marketplace and internal relationship data.
Depending on the results of these studies, the entire pay grade structure may be adjusted or
individual positions may be reassigned to different pay grades. Such adjustments will only affect
the salary administration framework. No individual salaries will be automatically changed
because of structural adjustments.
Fixed and Variable Compensation. Management compensation includes fixed bi-weekly salary
and Variable Management Compensation (VMC). Fixed bi-weekly salary is paid on a continuing
COMPENSATION PLAN
MANAGEMENT AND CONFIDENTIAL PERSONNEL
AND COUNCIL-APPOINTEES
basis. Variable Management Compensation is a one-time cash award in an amount not to
exceed 15% of the position control point. On a fiscal year basis, the sum of both compensation
components must fall within pay grade limits of no less than 25% below the control point and no
more than 15% above the control point.
Fixed salary increases may be earned in accordance with administrative guidelines based on
growth within the position and performance which meets or exceeds position standards. In
addition, employees may earn Variable Management Compensation by meeting or exceeding
objectives established under the annual performance planning and appraisal system. Variable
Management Compensation requalification is necessary for each appraisal period. ~
Compensation Adjustment Authorization. Each year the City Manager will propose for Council
approval a compensation adjustment authorization incorporating the requests of each Council-
appointed officer which will include amounts sufficient to implement base pay increases and
Variable Management Compensation. The compensation adjustment authorization will be based
on the following factors: competitive market, changes in internal position relationships, and the
City’s ability to pay.
Performance Plannin9 and Appraisal. Performance planning and appraisal will be conducted
at least annually by the Council-appointed officers and department heads prior to reviewing
individual employee fixed and variable compensation. This process includes both review of
previous performance plan and preparation of the performance plan for the next planning period¯(usually the fiscal year). Performance plans are jointly prepared by the employee and supervisor
with the concurrence of the department head or Council-appointed officer. The performance
plans shall contain measurable objectives which place special emphasis on position description
duties or specific assignments. Progress toward meeting objectives shall be monitored
periodically. At the conclusion of the fiscal year (or review period), supervisors shall make a final
determination of general performance and performance plan achievement. Such determinations
and recommendations shall be forwarded to department heads or council-appointed officers who
will then determine individual fixed and variable compensation adjustments according to the
provisions of the compensation plan.
Management and Confidential Compensation Adjustment Authorization
Council-appointed officers are authorized to pay salaries in accordance with this plan to
non-Council-appointed management and confidential employees in an amount not to
exceed the aggregate of approved management and confidential positions budgeted at the
control points indicated in the attached Tables for fiscal year 1999-00. In addition, for fiscal
year 1999-00 Council-appointed officers in aggregate are authorized up to 3% of the
management and confidential salary and benefit budget for the fiscal year, plus unused
Variable Management Compensation funds from the previous fiscal year to apply toward
Variable Management Compensation for individual management and confidential
COMPENSATION PLAN
MANAGEMENT AND CONFIDENTIAL PERSONNEL
AND COUNCIL-APPOINTEES
employees who qualify under the provisions of this Management and Confidential
Compensation Plan.
Individual management and confidential fixed and variable compensation authorized by a
Council-appointed officer under the Management and Confidential Compensation Plan may
not be less than 25% below nor more than 15% above the control point for the individual
position grades authorized in Table I of this plan.
The Council-appointed officers are authorized to establish such administrative rules as are
necessary to implement the Management and Confidential Salary Plan subject to the
limitations of the approved compensation adjustment authorization and the approved grade
and control point structure.
In the event a downward adjustment of a position grade assignment indicates a reduction
in the established salary of an individual employee, the Council-appointed officer may, if
circumstances warrant, continue the salary for such employee in an amount in excess of
the revised grade limit for a reasonable period of time. Such interim salary rates shall be
defined as "Y-rates."
SECTION II. SPECIAL COMPENSATION
This section applies to all eligible regular management and confidential positions except as otherwise
indicated. Eligibility shall be in conformance with the Merit Rules and Regulations and Administrative
Directives issued by the City Manager for the purposes of clarification and interpretation.
A. Overtime, Working Out of Classification, In-Lieu Holiday Pay
Compensation for overtime work, and scheduled work on paid holidays for certain designated
non-exempt employees shall be in conformance with the Merit Rules and Regulations and
Policies and Procedures. Overtime eligible employees shall be paid at the rate of time and one-
half times the employees’ basic hourly salary unless called out for an emergency arising out of
situations involving real or potential loss of service, property or personal danger, in which case
additional pay will be at the rate of two times the employees’ basic hourly salary. Where
management employees, on a temporary basis, are assigned to perform all significant duties of
a higher classification, the City Manager may authorize payment within the range of the higher
classification.
B. 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:
COMPENSATION PLAN
MANAGEMENT AND CONFIDENTIAL PERSONNEL
AND COUNCIL-APPOINTEES
Monday through Friday
Saturday, Sunday, Holidays
$40 per day
$58 per day
C. Night Shift Premium
Night shift differential shall be paid at the rate of 5% to regular full-time employees who are
regularly assigned to shift work between 6:00 p.m. and 8:00 a.m. Night shift premium will not
be paid for overtime hours worked or to Fire personnel assigned to shift duty.
D. Uniform Purchase Plan - Sworn Police and Fire Personnel
Uniforms including cleaning will be provided with replacement provisions on an as-needed basis
in conformance with department policy.
E. Group Insurance
1. Health Plan
The City shall pay all premium payments on behalf of employees and dependents who are
eligible for the employee-selected Public Employees’ Medical and Hospital Care Act
(PEMHCA) optional plan.
a) Retiree Medical Provisions
1)Monthly City-paid premium contributions for a retiree-selected PEMHCA optional
plan will be made as provided under the Public Employees’ Medical and Hospital
Care Act.
b) Active Employee Domestic Partners
1)Effective July 1, 1996, active employee domestic partners who meet the
requirements of the City of Palo Alto Declaration of Domestic Partnership, and are
registered with the Human Resources Department, will be eligible for
reimbursement of the actual monthly premium cost of an individual health plan, not
to exceed the average monthly premium cost of individual coverage under the
PEMHCA health plans. Evidence of premium payment will be required with
request for reimbursement.
COMPENSATION PLAN
MANAGEMENT AND CONFIDENTIAL PERSONNEL
AND COUNCIL-APPOINTEES
2. Dental Plan
a)The City shall .pay covered plan charges on behalf of all eligible employees and
dependents. The maximum benefits per calendar year shall be $2,000. In addition,
the City will provide 50% of "usual, customary and reasonable" charges up to $1500
lifetime maximum for orthodontic benefits.
b)Effective July 1, 1996, dependents will include domestic partners, as defined under
Section E. 1. b).
3. Basic Life Insurance
The City shall provide a basic life and AD & D insurance plan in an amount equal to the
employee’s annual basic compensation (rounded to the next highest $1,000).
4. Lon9 Term Disability Insurance
The City shall provide long term disability insurance with a benefit of 2/3 monthly salary to
a maximum of $6,000. Effective 1-1-00 premiums for salaries between $6,000 and
$12,500 per month are paid by the employee.
5.Vision Care
a)The City shall provide vision care coverage for employee and dependents. Coverage
is equivalent to the $20 deductible Vision Services Plan A.
b)Effective July 1, 1996, dependents will include domestic partners, as defined under
Section E. 1. b).
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:
P.O.S.T. Advanced Certificate:
5% above base salary
7 1/2% above base salary
2. Fire Department- EMT Differential
5
COMPENSATION PLAN
MANAGEMENT AND CONFIDENTIAL PERSONNEL
AND COUNCIL-APPOINTEES
Pursuant to administrative rules governing eligibility and qualification, the following may be
granted to sworn Fire personnel:
EMT Differential:2% above base salary
Management Benefit Program
All City staff management and confidential employees are eligible for Sections 1, 2, 3, 4 and 5
of the Management Benefit Program. City Council Members are eligible for Section 3a only.
Specified amounts under this program will be applied on a pro rata basis for employees who are
part time or in a management or confidential pay status for less than the full fiscal year.
1.Professional Development- Reimbursement
Reimbursement for authorized self-improvement activities may be granted each
management employee up to a maximum of $1,500 per fiscal year. The following items
are eligible for reimbursement:
a.Civic and professional association memberships
b.Conference participation and travel expenses
Co Educational programs/tuition reimbursement. The education must maintain or improve
the employee’s skills in performing his or her job, or be necessary to meet the express
requirements of the City or the requirements of applicable law. The education to which
the reimbursement relates must not be part of a program qualifying the employees for
another trade or business; or be necessary to meet the minimum educational
requirements for qualification for employment. Permissible educational expenses are
refresher courses, courses dealing with current developments, academic or vocational
courses, as well as the travel expenses associated with the courses.
d.Professional and trade journal subscriptions.
e.Physician-prescribed personal health program as indicated under 3b of this section.
f.Purchase of job related computer software and hardware.
Professional Development Leave
Authorized paid leaves of absence for up to one year will be granted in accordance with the
following requirements:
COMPENSATION PLAN
MANAGEMENT AND CONFIDENTIAL PERSONNEL
AND COUNCIL-APPOINTEES
a.Eligibility is subject to a minimum City.service requirement of five years.
b.Compensation during the Professional Development Leave shall not exceed 50%
salary and full benefits.
When granted a Professional Development Leave shall require an employee
commitment of at least two-years’ service following return from the Leave. To the
extent the full two-year commitment is not fulfilled, the employee shall re-pay the City
a pro rata amount of the salary paid during the Leave based on the percentage of the
two-year commitment not fulfilled.
d.The Professional Development Leave program shall relate to the employee’s job
assignment.
e.An employee’s job assignment activity shall be adequately covered during his/her
absence with emphasis on the development of subordinates.
fo The leave of absence period shall be adequately coordinated with departmental
priorities and workload.
g°Professional Development Leaves shall be based on internship exchanges, and/or
loaned executive arrangements; scholastic and/or authorship programs; or educational
travel-study plans.
Leave of absence schedules will be apportioned among all levels of management and
confidential employees and will be based on an evaluation of each employee’s
performance record. Each paid sabbatical leave will be limited to a maximum of one year
and not more than two employees being on leave simultaneously. Sabbatical leaves must
be cleared in advance and approved by a Council-appointed officer for his/her
subordinates. Professional Development Leaves granted in excess of 30 days shall be
noticed to the Council.
3. Personal Health Program - Physical Fitness
a.All management and confidential employees are eligible to receive periodic physical
examinations in accordance with administrative procedures.
b°Subject to Internal Revenue Service regulations and with the written prescription of a
medical doctor, an employee may be reimbursed for a personal health program as
treatment for a diagnosed injury or illness. This activity will be reimbursed under
G. l(e) above.
"7
COMPENSATION PLAN
MANAGEMENT AND CONFIDENTIAL PERSONNEL
AND COUNCIL-APPOINTEES
Excess Benefit Reimbursement
Reimbursement for approved excess benefit expenses will be granted up to a maximum
of $2,500, per fiscal year each for management and confidential employees and shall
include the following benefit items:
ao
bo
Life insurance premiums for City-sponsored plans, subject to federal and state tax
limitations.
Excess medical/dental expenses for employee and dependents which are not covered
by existing City-sponsored plans.
c.Excess professional development items which are otherwise approved, to the extent
they are not paid or reimbursed under, any other plan of the City.
do Dependent care expenses under the City’s Dependent Care Assistance Program
(DCAP), subject to the following limits: Dependent care expenses will be reimbursed
only to the extent that the amount of such expenses reimbursed under this
Management Benefit Program, when added to the amount (if any) of annual
dependent care expenses that the participant has elected under the City’s Flexible
Benefits Plan, do not exceed the maximum permitted under the DCAP.
1)The annual amount submitted for reimbursement cannot exceed the income of the
lower-paid spouse.
2)The expenses must be employment-related expenses for the care of one or more
dependents who are under 13 years of age and entitled to a dependent deduction
under Internal Revenue Code section 151(e) or a dependent who is physically or
mentally incapable of caring for himself or herself.
3)The payments cannot be made to a child under 19 years of age or to a person
claimed as a dependent.
4)If the services are provided by a dependent care center, the center must comply
with all state and local laws and must provide care for more than six individuals
(other than a resident of the facility).
5)Dependent care expenses not submitted under this section are eligible under the
City Dependent Care Assistance Plan (DCAP). However, the maximum amount
reimbursed under DCAP will be reduced by any amount reimbursed under the
Excess Benefit Plan.
COMPENSATION PLAN
MANAGEMENT AND CONFIDENTIAL PERSONNEL
AND COUNCIL-APPOINTEES
If the full excess benefit reimbursement is not used during the fiscal year, the difference
between the amount used and the maximum (or pro rate maximum) may be applied at the
employee’s option to deferred compensation under the City Plan(s).
Notwithstanding the foregoing, no expense shall be reimbursed under this Excess Benefit
Reimbursement program unless the payment of such reimbursement will be nontaxable
to the recipient under the applicable income tax laws, as they may be in effect from time
to time.
5.Management Annual Leave
At the beginning of each fiscal year regular management and confidential employees will
be credited with 64 hours of annual leave which may be taken as paid time off, added to
vacation accrual (subject to vacation accrual limitations), taken as cash or taken as
deferred compensation. When time off is taken under this provision, 10-hour shift workers
will receive one shift off for each 8 hours charged; 24-hour shift workers will receive one-
half shift off for each 8 hours charged. Entitlement under this provision will be reduced on
a prorated basis for part-time status, or according to the number of months in paid status
during the fiscal year. Unused balances as of the end of the fiscal year will be paid in cash
unless a different option as indicated above is elected by the employee.
Automobile Expense Allowance
For those employees whose duties require exclusive use of a City automobile, the City Manager
(or in the case of Council-appointed officers, the City Council) may authorize payment of $325
per month in lieu thereof.
Commute Incentives and Parking
Employees who qualify may voluntarily elect one of the following commute incentives:
Civic Center Parking. Employees assigned to Civic Center and adjacent work locations.
The City will provide a Civic Center Garage parking permit. New employees hired after
July 1, 1994 may initially receive a parking permit for another downtown lot, subject to the
availability of space at the Civic Center Garage.
Public Transit. The City will provide monthly Commuter Checks worth the value to $20.
These vouchers may be used toward the purchase of a monthly transit pass.
Carpool. The City will provide carpool vouchers worth the value of $20 per month to each
eligible employee in a carpool with two or more people. These vouchers may be used a
Jo
COMPENSATION PLAN
MANAGEMENT AND CONFI:DENTIAL PERSONNEL
AND COUNCIL-APPOINTEES
designated service stations toward the purchase of fuel and other vehicle-related
expenses.
Bicycle. The City will provide bicycle vouchers worth the value of $20 per month to eligible
employees who ride a bicycle to work. These vouchers may be used at designated bicycle
shops for related bicycle equipment and expenses.
Walk. The City will provide walker vouchers worth the value of $20 per month to eligible
employees who walk to work. These vouchers may be used at designated stores for
expenses related to walking such as footwear and related accessories.
Expense Allowance
Per Pay Period Per Month (Approx.)
Mayor $69.23 $150.00
Vice Mayor $46.15 $100.00
K°REIMBURSEMENT FOR RELOCATION EXPENSE
Policy Statement
The City of Palo Alto will provide a Basic Relocation Benefits Package for all new management
employees. In addition, upon the approval of the City Manager or designated subordinate,
Relocation Benefits will be available to non-management positions. Provisions of "Optional
Benefits" or portions thereof, are intended only for rare instances and require the approval of the
City Manager or designee, or for Council-appointed officers, the City Council.
Procedure
Qualifications
In order to qualify for relocation benefits, the following conditions must be met:
1.Actual relocation, or contracts designed to establish a fixed domicile, shall occur within one
year of the initial date of employment.
2.Existing employees promoted to a covered position are not eligible.
3.Record-keeping requirements will parallel those required for expense reimbursement for
travel, conferences and meetings.
COMPENSATION PLAN
MANAGEMENT AND CONFIDENTIAL PERSONNEL
AND COUNCIL-APPOINTEES
Provision of Optional Benefits is contingent upon completion of a minimum of two years’
City employment unless a longer term is specified. Provision of Additional Relocation
Benefits for Council-Appointed Officers, Assistant City Manager and Department Heads
is contingent upon completion of a minimum of five years’ City employment. Failure to
complete the minimum term will require repayment of those benefits on a pro-rata basis
computed on the actual time of City service. Acceptance of relocation benefits by an
employee does not constitute a commitment by the City to any minimum term of
employment.
Basic Package
Professional Relocation Counsg!.ing - An agency designated by the City will provide
relocation information and counselling to the employee. Information to be provided
includes items such as a personalized cost-of-living analysis, home and rental locations,
transportation, weather patterns, schools, recreation, etc.
En Route Expenses - Direct common carrier transportation will be provided in full for all
family members. Automobile expenses are limited to two vehicles at the established City
rate with a minimum of 350 miles per day to be traveled.. Per diem is allowed at
established City rates for employee and spouse/mate and at 50 percent of the employee
-rate for dependents. Travel days allowed are limited to the actual mileage divided by 350
miles per day. Lodging is reimbursed in full on an actual and reasonable basis for all family
members.
o Household Goods Shipment - Full costs will be paid for the shipment of all personal items
normally considered "Household Goods." Items excluded include recreational vehicles,
firewood, building materials, sand, boats, airplanes, and perishable items such as food or
plants. Shipment of up to two automobiles is permitted. Storage of household goods will
be provided for 30 days.
Optional Benefits
Sale and Purchase Costs - The City will reimburse costs that arise in the sale and/or
purchase of residences including:
a.Real estate commissions on the sale of the former residence up to six (6) percent of
the sales price.
b.The employee’s portion of non-recurring closing costs on both sale and purchase of
residences limited to the following:
1!
COMPENSATION PLAN
MANAGEMENT AND CONFIDENTIAL PERSONNEL
AND COUNCIL-APPOINTEES
Title Insurance Policy and Escrow Fees
Loan and Assumption Fees
Private Mortgage Insurance
City and County Transfer Taxes
Tax Service, Notary and Recording Fees
Credit and Appraisal Reports
Property Survey Fees
Inspection Fees
c."Points" on purchase of residence are specifically excluded.
Miscellaneous Expense - The City will reimburse miscellaneous expenses associated with
the relocation. The amount shall not exceed $2,000.
"i’#mporary Livin9 Expense - Up to thirty (30) days’ temporary living expenses will be
available under the following guidelines:
a.Lodging - 100 percent of actual and reasonable costs for all family members.
Per Diem - 100 percent of the established City rates for employee and spouse/mate,
and 50 percent of the established City rate for dependents for the first 15 days; 50
percent of the established City rate for employee and spouse/mate, and 25 percent
of the established City rate for dependents over the last 15 days.
c.Car Rental - Up to 30 days for a single vehicle is available until such time as the
employee’s personal vehicle becomes available.
House Huntin9 Expense - The City will reimburse expenses for one house hunting trip for
both employee and spouse/mate. The trip shall be limited to a maximum of seven days.
Travel expenses are limited to the lesser of common carrier rates or the established City
rate for automobile use. Lodging is provided on an actual and reasonable basis. Per diem
expenses are allowed according to the established City rates. Expenses for children are
not covered.
Expenses for Renters - The City may reimburse the following expenses for employees
moving from or into rental housing:
a.Costs arising from the need to break an existing lease up to a total payment of three
times the current monthly rental rate.
b.The first and last month’s rent to a maximum of $3,500 on a Palo Alto area rental
accommodation.
32
COMPENSATION PLAN
MANAGEMENT AND CONFIDENTIAL PERSONNEL
AND COUNCIL-APPOINTEES
Additional Relocation Benefits for Council-Appointed Officers, Assistant City Manager and Department
Heads
As part of an employment offer, additional relocation benefits may be authorized by the City Council
for Council-appointed officers or the City Manager, Assistant City Manager or department heads. If
consideration for additional benefits is requested by a final candidate, the City will provide the
candidate through an agency designated by the City, a pre-hire relocation assistance analysis. This
analysis will include: An assessment of the value of the home in the existing location and an estimate
of the proceeds that the candidate will realize from the sale, an analysis and recommendations of the
uew home purchase or rental, loan assistance options and their cost to the City, and area counseling.
as provided for in Item 4. of the Basic Package. Once this analysis is complete, the appointing
authority will design a relocation assistance package based upon the individual’s needs and
circumstances, and the recommendations from the Pre-Hire Analysis. The program may consist of
any of the elements from the Basic Package and/or the Optional Benefits as well as those described
below. All direct City loans are subject to City Council authorization.
Marketing Management Program - If mutually agreed upon by both parties, the new
CAO/Assistant City Manager/department head may work with an agency designated by the City
to market his/her home in the old location through a "Marketing Management Program". The
purpose of this program is to provide the City and the new official with a realistic projection of
the funds that will be available for housing in the new location and to expedite the sale of the
house in the old location.
Direct City Loans The City may extend mortgage loans to new CAO/Assistant City
Manager/department heads as part of a relocation assistance package. The two loan options
are:
ao
bo
Adjustable Rate Mortgage - This loan may be secured by a first or second deed of trust
and may be fully amortized or for interest only. The interest rate will be set at 1/4 percent
above the City’s earning rate on its investment portfolio and will be adjusted annually. The
term of the loan will be set by the City Council for a period not to exceed 15 years, but will
be due and payable within six months of termination of employment for whatever reason.
Shared Appreciation Loan - This loan may be secured by a first or second deed of trust
and may be fully amortized or for interest only. The interest rate is set at five (5) percent.
Additionally, the CAO/Assistant City Manager/department head is required to pay deferred
interest equal to a portion of the future appreciation. That portion is determined by the
proportion of the original City loan to the original house price. For example, if the City
provided a loan amounting to 40 percent of the value of the home purchased, the
employee would be required to pay 40 percent of net appreciation, if any, as deferred
interest on the loan (net appreciation means appreciation after selling costs are deducted
from sales price). The term of the loan will be set by the City Council for a period not to
COMPENSATION PLAN
MANAGEMENT AND CONFIDENTIAL PERSONNEL
AND COUNCIL-APPOINTEES
exceed 15 years, but will be due and payable within six months of termination of
employment for whatever reason.
Location of Property - To qualify for a Direct City Loan, the home being purchased must
be located within a twenty-mile radius of the Civic Center, excluding property west of
Skyline Boulevard (Highway 35).
Loan Limits - Direct City Loans cannot exceed four times the annual salary of the
lendee/employee.
Short Term Interest Buy-Down - The City may pay a portion of the interest for the first three years
on a loan obtained by the CAO/Assistant City Manageddepartment head from a commercial
lender. The City’s portion of this "buy-down" is greatest in the first year and declines by 50
percent the second and third year with the lendee paying the full interest rate on the loan
beginning with the fourth year. The "buy-down" for the first year will be 2 percent, unless
otherwise determined by City Council.
o Additional Purchase Costs - For CAO/Assistant City Managed department heads only, "points"
on the purchase of a new residence are eligible for inclusion in this program.
o Rental Subsidy - If it is determined that by choice, or for whatever reason, the new
CAO/Assistant City Managed department head will be a long-term renter, the City may provide
rental subsidies up to a maximum of $500/month for 48 months.
Regulations and Guidelines
The City Manager, or designated subordinate, will institute and revise internal procedures to
assure the efficient delivery of services to the new employee and minimize costs to the City.
This will include the determination of whether direct City payments, advance of funds or
employee reimbursement is most appropriate for a given program element or employee.
The City Manager, or designated subordinate, will determine the appropriateness of inclusion
of specific items for reimbursement under this program.
3.Expenses incurred by the employee during relocation which are not covered are:
a. Payments to friends for assistance.
b.Automobile repairs.
Co Costs incurred during the relocation but not directly related to personal transportation or
forwarding of household belongings, i.e. uninsured losses during transit, entertainment
expenses,, etc.
COMPENSATION PLAN
MANAGEMENT AND CONFIDENTIAL PERSONNEL
AND COUNCIL-APPOINTEES
Budgeting of all relocation, expenses will occur in the Human Resources and Utilities
Departments.
5.Upon approval of the City Manager, provision of benefits under the section House Hunting
Expenses and Professional Relocation Counselling may be provided before an employee
formally accepts an offer of employment with the City.
L. Retirement
The City shall pay the mandatory seven percent (7%) employee Public Employees’.
Retirement System (PERS) contribution. Such employer paid contributions shall be paid
by the City in lieu of employee contributions notwithstanding the fact that such employer
payment of contributions may be designated as employee contributions for purposes of
PERS. This provision shall apply to Council-appointed officers and all regular
management and confidential employees, except that for sworn police and fire
management employees the City shall pay the mandatory nine percent (9%) of the
employee’s PERS contribution.
Notwithstanding subsection 1. above, upon filing a notice of retirement, the 7% City-paid
PERS contribution (9% for sworn police and fire management personnel) will be converted
to a salary adjustment of equal amount on a one-time irrevocable basis for the final twelve
months immediately prior to retirement. Employee PERS contributions shall be made on
a tax deferred basis, in accordance with Section 414(h)(2) of the Internal Revenue Code.
All provisions of this subsection are subject to and conditioned upon compliance with IRS
regulations.
Effective 1-1-99, the City will provide benefits under the Public Employees[] Retirement
System 2% at age 55 formula.
M. Sick Leave Conversion
Management employees hired on or before December 1, 1983 who have 15 or more years of
continuous service, 600 or more hours of accumulated unused sick leave and otherwise qualify
under Sections 604 and 609 of the Merit System Rules and Regulations, may convert sick leave
hours in excess of 600 to cash or deferred compensation, according to the formula set forth in
Section 609. The maximum amount of such conversion is $2,000 per fiscal year.
N. Meal Allowance
Management employees assigned to attend night meetings are eligible to receive reimbursement
for actual expenses up to the dinner rate limit established in Policy and Procedures 1-2 for out-
of-town meetings. This provision covers only receipted meals actually taken.
15
Oo
COMPENSATION PLAN
MANAGEMENT AND CONFIDENTIAL PERSONNEL
AND COUNCIL-APPOINTEES
Vacation
Vacation will be accrued when an employee is in pay status and will be credited on a bi-weekly
basis. Such accrual and credit may not exceed three times the annual rate of accrual. Each
eligible employee shall accrue vacation at the following rate for continuous service performed
in pay status:
(a)Less than four years. For employees completing less than four years continuous service:
two calendar weeks vacation leave per year, except that the City Managers authorized to
credit new employees with up to two additional weeks per year for service with a prior~
employer.
(b)Four, but less than nine years. For employees completing four, but not more than nine
years continuous service: three calendar weeks vacation per year.
(c)Nine, but less than fourteen years. For employees completing nine, but not more than
fourteen years continuous service; 160 hours vacation per year.
(d)Fourteen, but less than nineteen years. For employees completing fourteen, but not more
than nineteen years continuous service; 180 hours vacation leave per year.
(e)Nineteen or more years. For employees completing nineteen or more years continuous
service; 200 hours vacation leave per year.
r-
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E ,,-"o
RESOLUTION NO.
RESOLUTION OF THE COUNCIL OF THE CITY.OF PALO ALTO
ADOPTING A COMPENSATION PLAN FOR HOURLY PERSONNEL
AND RESCINDING RESOLUTION NO. 7813
follows:
The Council of the City of Palo Alto does RESOLVE as
SECTION I. Pursuant to the provisions of Section 12 of
Article III of the Charter of the City of Palo Alto, the
Compensation Plan, as set forth in Exhibit "A" attached hereto and
made a part hereof by reference, is hereby adopted for hourly
personnel effective retroactive to the pay period including July i,
1999.
.SECTION 2. The Compensation Plan adopted herein shall be
administered by the City Manager in accordance with the Merit
System Rules and Regulations.
SECTION 3. The Compensation Plan shall continue in effect
unti! amended or revoked by the Counci!.
SECTION 4. The Director of Administrative Services hereby
is authorized to implement the Compensation Plan adopted herein in
preparation of forthcomin@ payrolls. He is further authorized to
make changes in the titles of employee classifications identified
in the Table of Authorized Personnel contained in the 1999-2000
budget if such titles have been changed in the Compensation Plan.
.SECTION .5.Resolution No. 7813 is hereby rescinded.
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990804 sdt 0032228
SECTION 6 The Council finds that this is not a project
under the California Environmental Quality Act and, therefore, no
environmental impact assessment is necessary. .
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:APPROVED:
City Clerk
APPROVED AS TO FORM:
Senior Asst. City Attorney
Mayor
City Manager
Director of Human Resources
Director of
Administrative Services
2
990804 sdl 0032228
EXHIBIT "A"
CITY OF PALO ALTO
COMPENSATION PLAN
Hourly Employees
Effective:Pay period including July 1,
through June 30, 2000
1999
COMPENSATION PLAN FOR THE CITY OF PALO ALTO
Hourly Employees
SECTION I. DEFINITIONS
Hourly Employee: An employee working full time or part time on a temporary basis, or
an employee working a limited number of hours on an ongoing basis.
SECTION II. SALARY AND CLASSIFICATIONS
It is the intent of the City of Palo Alto to compensate hourly employees at a rate of pay
similar to that of regular employees performing like work.
Hourly employees are to be hired within the classifications framework, as presented in
the attached pay plan, that is closest to a corresponding regular classification in both level
of work performed and rate of pay.
Should an hourly employee be required to take on added duties above the level of those
originally required when first fired, the employee is to be reclassified into a new
classification and pay rate which most adequately corresponds to the new duties.
Conversely, if the employee is required to perform at a substantially lower level, the
employee is to be reclassified into a corresponding lower level classification at a lower
level of pay.
SECTION III. SPECIAL COMPENSATION
A.Holiday Pay
Hourly employees are eligible to receive holiday pay only if hours worked during
the pay period when the holiday occurs plus the holiday (8 hours each) total 80 or
more hours.
B. Paid Leaves
Hourly employees are not eligible for any paid leaves.
C.Overtime Pay
Unless designated by the Director of Human Resources as exempt from the
provisions of the Fair Labor Standards Act, hourly employees are eligible for
overtime premium pay at time and one-half when required to work more than a
standard 40 hour week (for example: 8 hours/five day week; 9 hours/four and
one-half day week or other pre-determined and pre-approved work schedule) or
on an official City holiday.
SECTION IV. TERM OF EMPLOYMENT
The maximum employment term for hourly employees el~sifi~ in limited hourly
elassifieati0~ shall be less than 1000 hours during any fiscal year.
SECTION V. REVIEW AND SALARY INCREASES
A.Performance Reviews
Bo
Hourly employees, with the exception of the Recreation Department
classifications, are to be given a performance review after 350 hours, or six
months, whichever occurs first, from date of hire and annually thereafter.
Continued improvement and efficient and effective service will warrant a
salary step increase.
Recreation Specialist will be eligible for consideration for a pay increase upon
completion of a minimum of 300 hours of work and a satisfactory
performance evaluation completed by the employee’s supervisor. Subsequent
salary reviews are generally conducted annually; salary increases are not
granted automatically and will depend upon demonstrated satisfactory job
performance.
3.Starting Salary and Increment Approval. All starting levels and increments
must be approved by the Director of Recreation and Open Space.
Salary Increases
The salary increase is based upon a review and evaluation of the employee’s
job performance. The employee must receive at least a satisfactory rating in
order to be considered for a salary increase.
2.The maximum number of salary increases an hourly employee may receive in
any one twelve-month working periods is limited to two (2), regardless of
total number of hours accumulated.
C.Exceptional Leadership Ability and Job Performance
Upon written justification and departmental and Human Resources Department
approval, an individual who demonstrates EXCEPTIONAL leadership ability and
job performance may be given a merit raise before meeting time requirements, if
he/she displays outstanding job performance.’"’
SECTION ~-LIMITED HOURLY CLASSIFICATIONS
ADMINISTRATIVE, PROFESSIONAL AND MANAGERIAL
Management Specialist May perform work associated or equal in complexity
with responsible City managerial or staff positions.
Compensation to be determined according to tasks
assigned and qualifications required.
Professional I Performs work at the level normally associated with
that of consultants, instructors, and research personnel
where a specialized skill or expert knowledge is
required.
Professional II Performs work in an assignment requiring specialized
knowledge in professional field of endeavor. This
level normally requires a college education with some
experience but not at the level expected for the
Professional I classification.
Administrative Assistant I Performs analytical studies or undertakes a variety of
projects whereby previous work experience is
required. Normally requires a college education and
experience in the field for which the individual is to be
utilized.
Administrative Assistant II Performs work in an assignment normally associated
with that of college student or graduate with a
minimum of work experience generally an entry level
position.
Coordinator Aide Performs work in support of program or facility
operations. Entry level or training position with no
previous experience required.
CLERICAL
Clerk I Performs general office work which includes tasks that
require use independent judgement. May coordinate
activities, work with public, write and type basic
reports. Requires experience in administrative/clerical
areas.
Clerk II Performs office work of a routine nature. May type
from drafts, file, greet the public, answer telephones.
Requires little prior office experience.
Library Aide
MAINTENANCE AND CRAFTS
Skilled Laborer
Under supervision, performs related library duties of a
simple nature. Requires no previous experience.
(Usually high school students.)
Performs maintenance tasks that usually require use of
automated and/or technical equipment. Requires prior
training and experience in area assigned and valid
California driver’s license.
Laborer I Performs laboring maintenance typically in parks or
streets. May direct work of other employees.
Requires prior maintenance experience, knowledge of
power equipment and valid California driver’s license.
Laborer II Performs routine maintenance utilizing hand tools.
Requires the physical ability to perform tasks utilizing
dexterity.
Laborer III Position for individual who has had some exposure to
outdoor maintenance. Duties are of routine nature.
Individual works closely with an assigned person(s) to
gain skill. Requires some prior experience.
TECHNICAL
Technician I Includes such work as performed by advanced
draftspersons and appremice electricians.
Classification may also be used for individuals
involved in conducting surveys, opinion polls, and
other data collection assignments where analysis of
data may be required.
Technician II Performs less advanced technical work than that of the
Technician I class. Normally requires some
specialized skills such as drafting, electronics, building
maintenance, crafts, etc.
Technical Assistant I Performs entry level technical skills requiring the
ability to master the use of specialized tools and
techniques.
Technical Assistant II
RECREATION
Recreation Specialist
Recreation Trainee
A trainee position to gain experience and exposure in
the technical function normally associated with Social
Services and the Arts.
Individuals involved in a department training program.
Recreation Specialist I Individuals with less than 500 hours of recreation
leadership experience.
Recreation Specialist II Individuals with more than 500 hours of leadership
experience.
Recreation Specialist III Individuals with 1000 hours leadership experience
who organize and/or instruct class-type programs.
Lifeguard/Instructor
:
Individuals with up to two: years
supervising swimming activities.
of experience
Aquatics Speei~
expenen~.
Aquatics Facility Manager
DEFINITIONS
Leadership Defined as work experience in a paid or voluntary
capacity, in which an individual is directly responsible
for planning, organizing, teaching, leading, or
conducting recreational activities in a face-to-face
relationship.
Non-Leadership
POLICE RESERVES
Police Reserve I
Defined as facility attendant (i.e., parks, fields, gyms),
facility maintenance, office work, cashier (exception,
Rincondada Pool).
Reserve officer who has received requisite level of
training to operate in a solo capacity.
Police Reserve II Reserve officer who must be accompanied by a regular
sworn officer or a Police Reserve I in performance of
duties.
SECTION VII. PERS EXEMPT HOURLY CLASSIFICATIONS
ADMINISTRATIVE, PROFESSIONAL AND MANAGERIAL
Project Manager: Manages contractors, consultants and activities related to capital
improvement, grant-fimded or other projects of a special projects of specified time
duration typically requiring prior experience in the project area.
CLERIC~
course. Requires no previous or related e~rience.
RECREATION
recreational activities.
Water Safety In~etor/Life~d: Supe~ses swimming aetivitiesl Requires previous
experience in supervising swimming activities.
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RESOLUTION NO.
RESOLUTION OF THE COUNCIL OF THE CITY.OF PALO ALTO
AMENDING SECTION 1701 OF THE MERIT SYSTEM RULES
AND REGULATIONS
The Council of the City of Palo Alto does RESOLVE as
follows:
SECTION i. Section 1701 of the Merit System Rules and
Regulations to read as follows:
"1701. Compensation Plan for Management and Confidential
Personnel and Council Appointees incorporated by reference. That
certain Compensation Plan entitled "City of Palo Alto Compensation
Plan--Management and Confidential Personnel and Council
Appointees," effective the pay period including July I, 1999
through June 30, 2000, hereby is 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
confidential 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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1
990804 sdt 0032229
SECTION 3. The Council finds that this is not a project
under the California Environmental Quality Ac.t and, therefore, no
environmental impact assessment is necessary.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:APPROVED:
City Clerk
APPROVED AS TO FORM:
Senior Asst. City Attorney
Mayor
City Manager
Director of Human Resources