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HomeMy WebLinkAbout2004-08-09 City Council (17)6 City of Palo Alto City Manager’s Report TO:HONORABLE CITY COUNCIL FROM:CITY MANAGER DEPARTMENT: HUMAN RESOURCES DATE:AUGUST 9, 2004 CMR:383:04 SUBJECT:APPROVAL OF RESOLUTIONS ADOPTING COMPENSATION PLAN FOR MANAGEMENT AND PROFESSIONAL PERSONNEL, AMENDING THE SALARIES AND BENEFITS OF CERTAIN COUNCIL APPOINTED OFFICERS, AND AMENDING THE MERIT SYSTEM RULES AND REGULATIONS RECOMMENDATION This report recommends Council approval of the attached resolutions adopting a compensation plan for Management and Professional personnel effective for the pay periods including July 1,2004 through June 30, 2005. Also recommended is approval of the attached resolution amending the salary and benefits of certain Council Appointed Officers and the Merit System Rules and Regulations to incorporate the amended compensation plan for Management and Professional personnel. BACKGROUND Last year Management and Professional employees took the lead in addressing the City’s financial situation by not only taking a 0% salary increase but also an offsetting 1% salary decrease via a mandatory furlough. Management and Professional employees also accepted a cap for health insurance at PERS Choice from PERS Care; prorating benefits for new. part time employees; and a two-tier retiree health program. This year the City emphasized these key issues during negotiations with SEIU in order to maintain a level of comparability within the City. DISCUSSION This year the City Manager is recommending a minimal adjustment for the group. A committee comprised of one employee from each department provided the City Manager CMR: ,~Page lof 3 with areas of interest and concern on behalf of the Management and Professional employees. The City Manager recommends: A 3% control point increase effective July 1, 2004 to all Management and Professional classifications. Under the Management Compensation Plan, control point adjustments are not automatically passed on to employees. Individual employee salaries are authorized by department heads, based upon performance. A voluntary furlough (equivalent to an overall 1% salary reduction for all Management!Professional employees; if the 1% is not achieved via voluntary contributions, the furlough will be mandated A new, self-funded program for those employees enrolled in PERS Choice who exceed $2,500 in medical expenses to submit receipts for up to $700 (for single) $900 (for employee + one) and $1100 (for family) Council Appointed Officer The City hired a new City Attorney effective July 25, 2004. The Employment Agreement for the City Attorney was approved by the Council on June 14, 2004. As noted by the Mayor during the June 14, 2004 Council meeting, in order to implement the Employment Agreement for the City Attorney, the 2004-05 Management and Professional Compensation Plan (Exhibit A hereto) must include in attachments the new City Attorney’s salary and those benefits that are unique to the employment agreement (those specifically not listed in the Management and Professional Compensation Plan). RESOURCE IMPACT , The annual cost for the proposed Management and Professional Compensation Plan increase is estimated to be $1’1 million. This increase will be partially offset by the voluntary furlough savings ($350,000). The maximum potential cost of the self-funded PERS Choice plan is $87,000/year and there is no increase to the City as a result of the amended Professional Development Program. The. 2004-05 proposed budget includes full funding of this expense within each fund’s respective salary and benefits budget. POLICY IMPLICATIONS The action recommended by this report is consistent with City Council direction. ENVIRONMENTAL REVIEW CMR: 318:04 Page 2of 3 This is not a project under the California Environmental Quality Act (CEQA). ATTACHMENTS Attachment A - Attachment B - Resolution Adopting a Compensation Plan for Management Professional Personnel, which includes the new City Attorney. Resolution Amending the Merit System Rules and Regulations PREPARED BY: Leslie Loomis, Human Resources Director CITY MANAGER APPROVAL: Bmily Harrison, Assistant City Manager and CMR: 318:04 Page 3of3 ATTACHMENT "A" NOT YET APPROVED RESOLUTION NO. RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO ADOPTING A COMPENSATION PLAN FOR MANAGEMENT AND PROFESSIONAL PERSONNEL AND COUNCIL APPOINTEES AND RESCINDING RESOLUTION NOS. 8353 .AND 8378 The Council of the City of Palo Alto does RESOLVE as follows: SECTION i. Pursuant to the provisions of Section 12 of Article III of the Charter of the City of Palo Alto, the Management Compensation Plan, as set forth in Exhibit "A" attached hereto and made a part hereof by reference, is hereby adopted for Management and Professional Personnel and council Appointees effective July I, 2004 through June 30, 2005. SECTION 2. The Compensation Plan as adopted 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 classification identified in the Table of Authorized Personnel contained in the 2003-2005 budget, if such titles have been changed in the Compensation Plan. SECTION 5. rescinded. Resolution Nos. 8353 and 8378 are hereby // // // // // // 040623 cl 8120483 1 NOT YET APPROVED 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: City Clerk APPROVED AS TO FORM: Mayor APPROVED: Senior Asst. City Attorney City Manager Director of Administrative Services Director of Human Resources 040623 cl 8120483 2 CITY OF PALO ALTO COMPENSATION PLAN Management and Professional Personnel And Council Appointees Effective:Pay period including July 1,200~ through June 30, 20045 COMPENSATION PLAN FOR THE CiTY OF PALO ALTO Mana.qement 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. Notwithstanding this exception, the Council may authorize Variable Management Compensation for Council-appointed officers. Each Council-appointed officer shall be the responsible decision-maker underthis 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 annually and updated as necessary based on marketplace survey data, internal relationships, and City financial conditions. Individual compensation adjustments will be considered by the Council-appointed officer based on (1) performance factors including achievement of predetermined objectives; (2) pay structure adjustments; and (3) City financial conditions. B.BASIC PLAN ELEMENTS Structure. The compensation plan includes separate multi-grade structures for both management and professional employees. Each grade will have a control 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. All positions ~ assigned to a pay graddi ,,,~ ....; ...........~,~,,^,~,;,.h ;~. ~,,~ ~.o than o<o/_ k~ ....+h ....+’~ ~;~+ ~ ~th~n ono/_ ~h ....,h~....................................... ~ ............~or~ ........ ~,nt. Actual sala~ within the.range is determined by pe~ormance. The normal working range where most actual salaries will fall will be within ~ 5% of the control point. As needed competitive market )lace studies will be conducted by surveying 10-15 agencies similar to Palo Alto ~n 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 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 2 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. Compensation Adjustment Authorization. Each year the City Manager will propose sufficient to implement base pay increases and Variable Management Compensation. The compensation adjustment request will be based on the following factors: competitive market, changes in internal position relationships, and the City’s ability to pay. Council authorization is required prior to implementation by the Director of Human Resources. Fixed and Variable Compensation. Compensation for management and professional employees includes fixed bi-weekly salary and Variable Management Compensation (VMC), Fixed bi-weekly salary is paid on a continuing basis. Variable Management Compensation is an annual cash performance award based upon merit. On a fiscal year basis, the sum of ~"-,~, ~.~:~~ must fall within pay grade limits of no less than 25% below the control point and no more than 20% above the control point. Fixed salary increases are earned in accordance with administrative guidelines based upon growth within the position and performance, which must meet or exceed 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. Performance Planning and Appraisal. Performance appraisals will be conducted at the end of each fiscal year during the months of July through August ~t!i!~ pr or to determining individual employee fixed and variable compensation. This process includes both review of previous performance plan and preparation of the performance plan forthe 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 to be considered for a VMC ..... Work plans should include job related projects or special g~)als 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 or council-appointed officers who will then determine individual fixed and variable compensation adjustments according to the provisions of the compensation plan. This process should be completed by August-gO~ ~Et..e~.~.~.EI.~.Q;.~" MANAGEMENT and AUTHORIZATION PROFESSIONAL COMPENSATION ADJUSTMENT 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 fiscal year ~ ~i~. In addition, for fiscal year ~ ~i~0.~, Council- appointed officers are authorized up to 3% of salary plus ber~efits for management and professional positions, plus unused Variable Management Compensation funds from the previous fiscal year t~) apply toward Variable Management Compensation for individual management and professional employees who qualify under the provisions of this Management and Professional Compensation Plan. Individual management and professional fixed and variable compensation authorized by a Council,appointed officer under the Management and Professional Compensation Plan may not be less than 25% below nor more than 20% 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 Professional 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 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, 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. B.WORKING OUT OF CLASSIFICATION PAY Where management and professional employees, ona 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. T,,~,~,-o~l,,, J~"’~’~"~ wWorking ....................out of class pay is ~i~-~~l|y 5 - 10% more than the employee’s current salary. C. 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 Saturday, Sunday, Holidays $40 per day $58 per day D. 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. 5 E.UNIFORM PURCHASE PLAN-SWORN POLICE!aP~ FIRE PERSONNEL, Uniforms including cleaning will be provided with replacement provisions on an as- needed basis in conformance with department policy. F.FURLOUGH During the term of this compensation plan (07/01/0~ through 06/30/04~), all management and professional employees #.[#ie~l~#~.L~# shall participate in the-thr-ee- ~Olu~tarv furlou program. ’-.~.~, ,~m~,~,-,,,,~,~ ~h~, ~ ~ unpaid time off. Benefits will not be impacted. In the event a management/professional employee plans to r~tir.- ,4, ,.h-,.~ ÷1-..~ ,~,-~1 0~3-(0 ~~[~............ ~ ..........~ ~,~,,notate 2005 s/he may opt todonate three days of vacation in lieu of taking three days off without pay. G~.,GROUP INSURANCF ~.Health Plan Based on an employee’s family status, the City shall pay up to the applicable PERS Choicc Blue Shield HMO premium rate (or if in a public safety department the applicable PORAC rate) on behalf of eligible employees (including Council Appointed Officers and Council Members) and dependents for the employee-selected Public Employees’ Medical and Hospital Care Act (PEMHCA) health plan. a)Active Employee Domestic Partners Effective July 1, 1996, active employee domestic partners who meet the requirements of the City of Palo Alto Decla ration of Domestic Partnership, and are registered with the Human Resources Department, are eligible for reimbursement of the actual monthly premium cost of an individual health plan, not to exceed the individual PERS Choice Blue Shield HMO (or PORAC if a safety department employee) monthly premium cost. Evidence of premium payment will be required with request for reimbursement. :to all s~ SO Retiree Health Plan a) Existing Employees During the term of this compensation plan, as to any qualifying retiring employee, the City will continue to maintain the level of health premium contributions provided for in the previous compensation plan; that is, the full premium for any retiree-selected PEMHCA health plan for the individual retiree, along with the applicable percentage of the premium provided under the City’s PEMHCA resolution (currently,~)~.5%) for any dependents. b) Post- 1/1/04 Hires As-re ~ rthose m~anagement and professional employees hired after January 1, 2004, the PERS law vesting schedule set forth in Government Code section 22825.5 will apply. Under that law, an employee is eligible for 50% of the specified employer health premium contribution after ten years of service credit, provided at least five of those years were performed at the City of Palo Alto. After ten 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 22825.5 based on a weighted average of available health plan premiums. Dental Plan a)The City shall pay covered plan charges on behalf of all eligible employees and dependents, et~omestic partners are considered dependents, as defined under Section ~ ~ii~.a).Benefits for regular part-time employees will be prorated as follows: New Employees ~,~-,~ "-~,- I ......................... j !, 200~ who will work less than full time, will receive prorated premium costs for dental benefits in accordance with his/her percentage of a full-time b) c) 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 $t,000). ~.Suoolemental Life And AD&D Insurance An employee may, at his/her cost, purchase additional life insurance and additional AD&D coverage. The total amount of life insurance available to the employee is $325,000 and the total amount of AD&D coverage available is $325,000. ~.Lon.q 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. 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 coverage above $6,000. 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. ~.Vision Care a) regular part-time employees will be prorated as follows:Benefits for New-Employees hired after January 1, 2004, who will work less than full time, will receive prorated premium costs for vision b)Effective July 1, 1996, dependents include eligible domestic partners, as defined under Section &--_-_-_-_-_-_-_-_~ ~!~!i~~ 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: 2. Fire Department- EMT Differential 5% above base salary 7 1/2% above base salary Pursuant to administrative rules governing eligibility and qualification, the following may be granted to sworn Fire personnel: EMT Differential:2.5% above base salary 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. Specified amounts under this program 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 prorated in the first year of employment (based on hire date) and in the year an employee terminates employment (based on termination date). 1.Professional Development- Reimbursement Reimbursement for authorized self-improvement activities may be granted each management and professional 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 12 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 not to exceed 12 months. 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. Purchase of job related computer software, hardware, internet access, telecommunication equipment and home office equipment/furniture. Reimbursement of any of these expenses is taxable to the employee. 2.Professional Development Leave Authorized paid leaves of absence for up to one year will be granted in accordance with the following requirements: a. Eligibility is subject to a minimum City service requirement of five years. b.Compensation during the Professional Development Leave shall not exceed 50% salary and full benefits. 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. eo The Professional Development Leave program shall relate to the employee’s job assignment. An employee’s job assignment activity shall be adequately covered during his/her absence with emphasis on the development of subordinates. 13 The leave of absence period shall be adequately coordinated with departmental priorities and workload. Professional Development Leaves shall be based on internship exchanges, and/or loaned executive arrangements; scholastic and/or authorship programs; or educational travel-study plans. Leave of absence schedules will be apportioned among all levels of management and professional 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. .Physical Examinations All management and profes ehg~ble to receive ~i physical examination,. ! ............... resea ~4.Excess Benefit Reimbursement Reimbursement for approved excess benefit expenses will be granted up to a maximum of $2,500, per fiscal year for management and professional employees and shall include the following benefit items: a.Life insurance premiums for City-sponsored plans, subject to federal and state tax limitations. bo do Excess medical/dental/vision or expenses for employee and dependents which are not covered or reimbursed by 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 such as vitamins, toiletries (e.g. toothpaste), cosmetics (e.g. face cream), and items used for cosmetic purposes (e.g. Rogaine) are not acceptable. Excess professional development items which are otherwise approved, to the extent they are not paid or reimbursed under any other plan of the City. 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. 15 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) shall 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. LEAVES 1. Sick Leave a) b) c) d) Sick leave shall be accrued bi-weekly provided the employee has been in a pay status for 50 percent 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 forty-hour duty schedule. Those assigned work schedules, which are greater or lesser than forty hours will accrue sick leave at the ratio of their work schedule to forty hours. Employees may use up to twenty 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. 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. 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 fifteen or more years of continuous service shall receive compensation for unused sick leave hours in a sum equal to two and one-half percent 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 ................ Management and P~’ofessional 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. 2.Mana.qement Annual Leave At the beginning of each fiscal year regular management and professional employees will be credited with 80 hours of annual leave. 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 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. 17 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 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 years. For employees completing less than nine 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, but less than fourteen years, For employees completing nine, but not more than fourteen years continuous service; 160 hours vacation per year. (c)Fourteen, but less than nineteen years. For employees completing fourteen, but not more than nineteen years continuous service; 180 hours vacation leave per year. (d)Nineteen or more years. For employees completing nineteen or more years continuous service; 200 hours vacation leave per year. Bereavement Leave of absence with pay of three 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, daughter, daughter-in-law, 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, 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. KIM. ~ETIREMENT PENSION 2, The City shall pay the mandatory seven percent (7%) for miscellaneous employee Public Employees’ Retirement System (PERS) contribution (9% for sworn police and fire management personnel).’ 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 professional 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 compensation period which is defined as the highest average compensation earnable (salary) during the year immediately preceding retirement or any other designated consecutive year. 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 ..... 19 As of 1-1-99, the City provides benefits under the Public Employees’ Retirement System 2% at age 55 formula for non-safety member~;. E-ffedtive October 20, 2001 and March 9, 2002, the Public Employees’ Retirement System (PERS) Benefit, known a= thc "3% at 50,’ full formula (Section 21362.2) for safety ,-,.-,-,her~L-,o~ ~,~,.,~,~ ;,-.~,~ ~,~__~,,,~.~,~ ~-~..,~, p,,~,~,~.~ .,~.~, ~,,~ AUTOMOBILE EXPENSE ALLOWANCF 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. 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. Public Transit. The City will provide monthly Commuter Checks worth the value of: $40 for employees traveling three ~6 or more zones on Caltrain; $40 for employees using the Dum~’rton Express, BART, the ACE train or a commuter highway vehicle; $35 for employees traveling ~ ~.t~!8..0.~£~ zones on Caltrain; $35 for employees using VTA, and other buses. These vouchers may be used toward the purchase of a ’~,,~,*~,~,,.......... j, transit pass. Carpool’ The City will provide ~.o~,,~,m..~.. ~.~---. .... ...~.~........~’"~"~r ..... .......,~’ +~"~..... ’"~’.~..~..."~ of $30 per month to each eligible employee in a carpool with two or more licensed drivers. Vanpool Pilot Program. The City will provide Commuter Checks worth the value up to $60 to each employee voluntarily participating in the Vanpool Pilot Program, These ’;o’d~era may be used toward payment of the monthly cost of the vanpool. Employees must fulfill the basic requirements of the Employee Commute Alternatives Program to qualify. 2O ,... ~ ,~;c,,c=e The City will ..... $20 per month to eligible employees who dde a bicycle to work. Walk The City will ..... ;’~ ..... ~u ........ h ....... ~h *h .... ~,,,~ ,-,f $20 per month to eligible employees who walk to work. N~.EXPENSE ALLOWANCE Mayor Vice Mayor Per Pay Period $92.31 $23.08 Per Month(Approx,) $200.OO $50.00 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 circumstances and ~i.~ii~ r-equife 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. Basic Package 22 23 k 2S ,4 MEAL ALLOWANCE Management and professional employees assigned to attend night meetings are eligible to receive reimbursement for up to $@ ~#_~,,~i~ per meaF~i~6~~. This provision covers only receipted meals actually taken and submitted for reimbursement. 26 o~ ~0 ~0UU OZ oz HO O~ HO o o o o ° Council Appointed Officers Benefits Council Appointed Officers are eligible for all benefits listed in the Compensation Plan for Management and Professional Personnel and Council Appointees .(the "Compensation Plan") currently in effect, except Sections 1 and 2. Unless otherwise set forth by individual agreement, the vacation accrual rate for Council Appointed Officers shall be as follows: For less than four years continuous service, the accrual rate shall be three calendar weeks per year. For completing four but less than nineteen years continuous service, the accrual rate shall be four calendar weeks per year. For completing nineteen or more years continuous service, the accrual rate shall be five calendar weeks per year. Notwithstanding anything to the contrary, City Manager Frank Benest shall be compensated in accordance with the employment agreement dated February 22, 2000, as amended June 4, 2001. Notwithstanding anything to the contrary, City Attorney Gary M. Baum shall be compensated in accordance with the employment agreement dated June 16, 2004, as approved by the Council on June 14, 2004. Notwithstanding anything to the contrary, City Clerk Donna Rogers shall be compensated in accordance with the employment agreement dated July 2, 2001. Notwithstanding anything to the contrary, City Auditor Sharon Winslow Erickson shall be compensated in accordancewith the employment agreement dated July 2, 2001. 040805 sm 8120479 ATTACHMENT "B" NOT YET APPROVED 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 Professional Personnel and Council Appointees incorporated by reference.That certain Compensation Plan entitled "City of Palo Alto Compensation Plan--Management and Professional Personnel and Counci! Appointees,~ effective the pay period including July i, 2004 through June 30, 2005, 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 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. // // 040623 sm 8120484 1 NOT YET APPROVED 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 APPROVED AS TO FORM: Mayor APPROVED: Senior Asst. City Attorney City Manager Director of Human Resources Director of Administrative Services 040723 sm 8120484 2