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Home My WebLink About2003-04-14 City Council (6)6 City of PaSo A~to a ager*s Report TO: FROM: DATE: SUBJECT: HONORABLE CITY COUNCIL CITY MANAGER DEPARTMENT: .HUMAN RESOURCES APRIL 14, 2003 CMR: 212:03 APPROVAL OF A RESOLUTION TO PROVIDE A SUPPLEMENTAL MILITARY LEAVE BENEFIT TO PAY FOR THE DIFFERENTIAL BETWEEN REGULAR SALARY AND MILITARY PAY AND TO EXTEND EMPLOYEE BENEFITS (AS APPLICABLE) TO EMPLOYEES CALLED TO ACTIVE DUTY IN THE SPECIFIED CURRENT U.S, MILITARY OPERATION RECOMMENDATION This report recommends that Council approve a resolution adopting a supplemental military leave benefit for full-time regular City employees who are called from the Reserve Program to active duty as part of Operation Iraqi Freedom. BACKGROUND The City of Palo Alto’s military leave benefit provides benefits pursuant to the California Military and Veterans Code, Sections 389, et seq. Consistent with the Military and Veterans Code, the City of Palo Alto has paid employees their regular salary for the first 30 calendar days of active military service during prior operations. In addition, the City has maintained all available benefits for reservists on military leave during the first 30 days, though this maintenance of benefits is not required in all cases by state law. During Operation Enduring Freedom, the City also provided an additional 11 months of salary and benefit continuance. DISCUSSION Under the proposed resolution, the City’s current military leave benefit, including salary differential and all available benefits, will be extended for up to eleven additional months after the first 30 days’ pay and benefits, depending on the number of months an employee serves in the operation. Such additional pay is authorized under Military and Veterans’ Code, § 395.03, where provided for by Council resolution. The City’s Merit Rules permit Council to grant paid leave of up to one year "for reasons the Council, in its sole discretion, considers adequate and in the best interest of the City." (City of Palo Alto Merit Rules and Regulations, Chapter 8, Section 808.) The City of Palo Alto’s Supplemental Military Leave Benefit would be extended only to employees who enlisted in the Reserves prior to March 19, 2003 and CMR: 212:03 Page lof3 have been called to active duty as a result of Operation Iraqi Freedom. This benefit would not be extended to employees who volunteer to serve on active duty. Due to the City’s hiring freeze, the City would not be authorized to backfill the positions of those serving in the military. The positions will remain vacant. If approved, the following benefits would be provided after the first 30 days of paid military leave: 1.The City would pay the differential between an employee’s current regular pay and military pay received by the employee while on active military duty up to eleven additional months. 2.The City would provide continuation for up to eleven months for all employee benefit plans for the employee (and their eligible family members), subject to any specific exclusions and limitations contained in the contracts and Summary Plan Descriptions, as long as the employee was enrolled in such plans on the day before the employee was called to active duty. 3. The City would provide for vacation and sick leave accruals to continue during the period of military leave for up to eleven additional months. All other provisions of the California Military and Veterans Code and the federal Uniformed Services Employment and Reemployment Rights Act with respect to military leave would continue to apply. RESOURCE IMPACT Staff recommends the Council authorize the City to provide this additional 11 months of salary and benefit coverage to full-time employees called to duty in the current military operation identified as Operation Iraqi Freedom, provided they were enlisted in the Reserves before March 19, 2003. Currently the City has two active reservists with the potential of being called for service. The estimated costs of providing this additional coverage include the following: the dollar differential between military pay and current City salary, medical, dental, vision premium costs and PERS contributions. The total estimated cost for the City for the first 30 calendar days is $8,027 for two employees. The estimated cost for these two employees with the 11-month extension of salary and benefits is $88,295. This number will increase if additional employees are called to active duty. There are sufficient funds in the 2003/2004 budget .to cover the costs of this benefit. The anticipated cost, based on two employees, is $88,295. POLICY IMPLICATIONS Existing policies permit the Council to authorize extended paid leave for up to 12 months. ENVIRONMENTAL REVIEW This is not a project under the California Environmental Quality Act (CEQA). CMR: 212:03 Page 2of3 PREPARED BY: Sandra Blanch, Manager, Risk Management~mployee Benefits DEPARTMENT HEAD: LESLIE LOOMIS Director of Human Resources CITY MANAGER APPROVAL:~ HARRISON Assistant City Manager CMR: 212:03 Page 3of3 RESOLUTION NO RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO TO PROVIDE A SUPPLEMENTAL MILITARY LEAVE BENEFIT TO PAY FOR THE DIFFERENTIAL BETWEEN REGULAR SALARY AND MILITARY PAY AND TO EXTEND EMPLOYEE BENEFITS (AS APPLICABLE) TO EMPLOYEES CALLED TO ACTIVE DUTY TO SERVE IN THE SPECIFIED CURRENT U.S.MILITARY ACTION WHEREAS, the Council of the City of Palo Alto values the contributions made by its employee reservists called to serve their country; and WHEREAS, it is in the interests of the City of Palo Alto and its workforce to ensure that employee reservists called to duty are able to serve with the knowledge that their families will not lose salary or benefits; and WHEREAS, the California Military and Veterans Code, Section 395.03, provides that cities may by resolution of their legislative body authorize additional pay for employees on military leaves of absence beyond the 30 days required by the Military and Veterans Code; and WHEREAS, the City of Palo Alto authorized such pay (and the corresponding benefits) for eleven additional months at the time of the U.S. engagement in Operation Enduring Freedom. NOW, THEREFORE, the Council of the City of Palo Alto does RESOLVE as follows: SECTION i. Following payment (in accordance with the City’s existing policy) of the first 30 days of military leave pay to a City emp!oyee reservist called to active military duty as part of the current U.S. operation identified as Operation Iraqi Freedom, the City will pay the differentia! between the emp!oyee’s current regular salary and the military pay received by the employee for up to eleven additiona! months of active military duty. SECTION 2. During the period described in Section i, for up to eleven months, the City will continue benefits associated with the employee’s regular employment, subject to any exclusions or limitations contained in the relevant contracts with providers and Summary Plan Descriptions, as long as the employee was enrolled in such plans on the day before the employee was called to active military duty. 030409 cl 8120326 SECTION 3. During the period described in Section i, for up to eleven months, the employee will continue to accrue vacation and sick leave in accordance with the employee’s regular accrual schedule. SECTION 4. The supplemental military leave benefit described herein is available only to regular City employees who enlisted in the Reserves prior to March 19, 2003, and who have been called to active duty as part of Operation Iraqi Freedom by the appropriate military authorities. It is not available to employees who volunteer to serve on active military duty. SECTION 5. 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 030409 cl 8120326 2