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2003-11-24 City Council (10)
6 City of Palo Alto City Manager’s Report TO:HONORABLE CITY COUNCIL FROM:CITY MANAGER DEPARTMENT: HUMAN RESOURCES AGENDA DATE: NOVEMBER 24, 2003 SUBJECT:APPROVAL OF RESOLUTION ADOPTING MEMORANDUM OF AGREEMENT BETWEEN CITY OF PALO ALTO AND THE PALO ALTO FIRE CHIEFS’ ASSOCIATIONAND RESOLUTION ADOPTING COMPENSATION PLAN RECOMMMENDATION This report recommends that Council approve the attached resolutions amending Section 1801 of the Merit System Rules and Regulations regarding the Memorandum of Agreement between the City of Palo Alto and the Fire Chiefs’ Association and adopting a Compensation Plan for Fire Chiefs’ Association management personnel. BACKGROUND A three-year Memorandum of Agreement with the Fire Chiefs’ Association management personnel expired June 30, 2003. Negotiations for a successor agreement began in June and continued into the fall of 2003 and ended with a one-year agreement, which has been ratified by the Asso(iation membership. The Agreement covers the Fire Chiefs’ Association management personnel for the period beginning July 1,2003 and ending June 30, 2004 and is consistent with Council direction. DISCUSSION The Memorandum of Agreement (Attachment A) includes all previously negotiated provisions, with new changes indicated by shading and strikeout. New provisions of the agreement are as follows: ¯Effective with the pay period including July 1, 2003, the agreement provides for a zero percent (0%) salary increase; Voluntary unpaid time whenever possible without trigging overtime, to result in the equivalent of 1% salary savings CMR: 520:03 Page 1 of 3 Effective January 1, 2004, change the maximum City contribution for health care coverage from the PERSCare premium rate to the PORAC premium rate; Implement a two-tier retiree medical benefit for new hires as follows: 20 year vesting in PERS system for full benefit, including minimum of 5 years with the City of Palo Alto; employees can begin to receive 50 percent of benefit after 10 years and each additional service credit year after 10 years increases employee credit by five percent (5%) until 20 years is reached, at which time employee is eligible for 100 percent and 90 percent for dependents; Elimination of the Employee Referral Program; Elimination of the Backup Childcare Program; RESOURCE IMPACT The estimated annual cost for the proposed Fire Chiefs’ Association compensation plan is $1.0 million for 2003-04. This is approximately the same level of expense as the prior year, because although one Battalion Chief was eliminated during the 2003-05 budget process ($170,000 savings, 17 percent), the Coordinator of Environmental Protection ($160,000 salary and benefits) was moved into this unit from the Management and Professional unit. The 2003-04 Adopted Budget includes full funding of this expense within the General Fund’s salary and benefits budget. POLICY IMPLICATIONS This report does not represent any change to existing City policies. ENVIRONMENTAL REVIEW This is not a project for purposes of the California Environmental Quality Act. CMR: 520:03 Page 2 of 3 ATTACHMENTS A.Resolution Amending Section 1801 of the Merit System Rules and Regulations B.Resolution Adopting Compensation Plan for Palo Alto Fire Chiefs’ Association PREPARED BY: Leslie Loomis, Director of Human Resources DEPARTMENT HEAD REVIEW:/ .,_~_ ~’~/~.5 i~.~,~, :_,:,~’ LESLIE LOOMIS Director of Human Resources CITY MANAGER APPROVAL: EMILY HARRISON Assistant City Manager CMR: 520:03 Page 3 of 3 NOT YET APPROVED Attachment A RESOLUTION NO. RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO ADOPTING A COMPENSATION PLAN FOR PALO ALTO FIRE CHIEFS’ ASSOCIATION. MANAGEMENT PERSONNEL AND RESCINDING RESOLUTION NOS.8125,8245 AND 8254 The Counci! of the City of Palo A!:o does RESOLVE as follows: SECTION !. Pursuant to the provisions o{ Section 12 of Article 777 of the Charter of the City of Pa!o Alto, the Compensation Plan, as set forth in Exhibit "A" attached hereto and made a ~=r~ hereof by ~=~= = ~~._~_=._~nc~, _.s hereby adopted ,_-or the Pa!o Alto Fire Chiefs’ Association management personne! effective retroac<ively ro the pay period including July !, 2003 through June 30, 2004. ~=~=.~,~=~am 2. The_ _ Compensation Plan adopted h====_. be administered by the City Manager in acco=~=~.~ with the Meri= System Rules and Regulations. SECTION~ .... mh=~ Compensation ~lan_ _ sha!~: continue in effect until amended or revoked by the Council. SECTION 4. The ~--D,:=ctor of A&ministrative Services hereby is authorized to implement the Compensation Plan adopted herein in the preparation of forZhcoming mavroiis. SECTION 5. hereby rescinded. Resolution Nos.8245 and 8254 // // // // // / / 031028 sm 8120409 NOT YET APPROVED SECTION 6. under the California Environmental Quality Act no environmental impact assessment is necessary. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST:APPROVED: The Council finds that this is not a project and, therefore, City Clerk APPROVED AS TO FORM: Senior Asst. City A~rorney Mayor City Manager Direc:or of Human Resources Director of Administrative Services Chief 031028 sm 8120409 2 CITY OF PALO ALTO COMPENSATION PLAN Fire Chiefs Association Manaqement Personnel Effective:Pay period including July 1, 2-000 2003 through June 30, 2003 2004 COMPENSATION PLAN FOR THE CITY OF PALO ALTO Fire Chiefs Association Manaqement Personnel SECTION I. COMPENSATION ..This section applies to all regular Fire Chief Association management classifications including Battalion Chief, Chief Officer-Emergency Operations and Coordinator Environmental Protection =~r~ ~oro~l~ ~,,,,~ ..... ÷~ 1,’"~ 30 2901) A. Management Compensation Policy The City’s policy for Management 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 City Manager 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 a pay grade structure for each classification. Each classification assigned to a pay grade will receive compensation which is no less than 25% below the control point and no more than 20% above the control point. Actual salary within the range is determined by performance. The normal working r~,~,~,~ ,^,it~,i ....~,i,-k ,^,h-,r,, most actual salaries will fall will be within + 5% of the control point. As needed, the entire pay grade structure may be adjusted or individual classifications may be reassigned to different pay grades. Such adjustments will only affect the salary administration framework. No individual salaries will be automatically changed because of structural adjustments. Fixed and Variable Compensation. Management compensation includes fixed bi- weekly salary and Variable Management Compensation (VMC). Fixed bi-weekly salary is paid on a continuing basis. Variable Management Compensation is an annual erie-t-line cash award in an amount not to exceed 20% 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 20% above the control point. Fixed salary increases may be e&rned 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 Adiustment Authorization. Each year the City Manager will propose for Council approval a compensation adjustment authorization which will include amounts sufficient to implement base pay increases and Variable Management Compensation. Salary Range Adiustments. a. Salaries shall remain unchanged for the term ofthis agreement. be.During the term of this agreement a 16% differential will be maintained between E-step Captain and Battalion Chief-56 Hour Assignment control point. Performance Planninq and Appraisal. Performance planning and appraisal will be conducted at least annually by the Fire Chief 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 Fire Chief. 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 the Fire Chief who will then determine individual fixed and variable compensation adjustments according to the provisions of the compensation plan. C.Management Compensation Ad}ustment Authorization The City Manager is authorized to pay salaries in accordance with this plan to management employees in an amount not to exceed the aggregate of approved positions budgeted at the control points indicated in the attached Tables. In addition, for each fiscal year the City Manager is authorized up to 3% of the management 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 employees who qualify under the provisions of this Compensation Plan. Individual management fixed and variable compensation authorized by the City Manager under this Compensation Plan may not be less than 25% below nor more than 20% above the control point for the individual position grades authorized in the Tab of this plan. o The City Manager is authorized to establish such administrative rules as are necessary to implement this Compensation 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 City Manager 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 covered classifications as specifically 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 Employees in the FLSA exempt Battalion Chief classifications will be paid overtime at the rate of time and one-half for hours authorized and worked in excess of the work week schedule (56 hours or 40 hours as scheduled). Shift personnel assigned to overtime relief duty in addition to their regular 56-hour shift schedule shall receive overtime compensation at a rate of one and one-half times the employee’s basic 56- 4 hour rate for all hours of the relief duty shift. Required off-duty training will be compensated at the rate of one and one-half times the basic 40-hour rate, and emergency callback will be compensated at the rate of one and one-half times the basic 40-hour rate to a maximum of eight hours, and at a rate of one and one-half times the basic 56-hour rate for those hours in excess of eight hours. All overtime hours must be pre-authorized by the Fire Chief or designee. B. Holidays Employees assigned to a 56-hour work week schedule will receive 5.75 hours straight time regular pay per pay period in lieu of holidays to a maximum payment of 149.5 hours per year. Employees assigned to a 40-hour work week schedule will receive paid holidays in accordance with Sections 517 and 518 of the Merit System Rules and Regulations. C. EMT Differential Represented classifications who maintain EMT certification will receive a 2-% 3% differential in addition to their base salary. -r~,~,,, ,,~ ,4;~,,~,÷;o~~.,,,.., ,,, ,,,~, w~,;. ,, ,, ..... ,~,~=~ fr~ .... 2% +~,~ ~ ~o/_ ~,; ...... ;,~ +~ ........ ;~ ;~l,,~;~~,~u~" ~ 200~ ~ ~ o ~o/_ +~ 3% D. Uniform Purchase Plan Uniforms including cleaning will be provided with replacement provisions on an as- needed basis in conformance with department policy. E. Voluntary Cost Savinq Measures Unit members agree to participate in the following voluntary cost saving measures to achieve a net savings equal to One (1%)percent of unit salaries. ¯Take.unpaid time off (XXtime)in lieu of vacation ¯Take unpaid time off during work shifts if staffing and operational constraints permit ¯Donate vacation time XX time shall not be taken if it would result in overtime coverage. XX time may be taken in eight (8) hour increments. These voluntary measures will stay in effect until a new agreement is negotiated and approved. FF=. Group Insurance For newly-hired regular employees coverage begins on the first day of the month following date of hire for the health plan, dental plan, vision care plan, life insurance and long term disability plans if these benefits are elected. 1. Health Plan a) Benefits will beprovided in accordance with provisions of the PEMHCA Health Plans. Monthly City-paid premium contributions for an employee-selected PEMHCA optional plan will be made to the maximum amount indicated in each category. EliNble Active Employees Number of Parties Covered Employee Only Employee Plus One Employee Plus Two or More Monttily City Contribution Premium for plan selected Not to exceed the PORAC Premium Premium for plan selected Not to exceed the PORAC Premium Premium for plan selected Not to exceed the PORAC Premium b)Active Employee Domestic Partners 1)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, are eligible for reimbursement of the actual monthly premium cost of an individual health plan, not to exceed the individual PORAC monthly premium. Evidence of premium payment will be required with request for reimbursement. Effective January 1, 2004, thePERS Choice/P.ORAC Incentive plan will be discontinued. c) Altemate Medical Benefit Program If a regular employee and/or the employee’s dependent(s)are eligible for medical insurance through another employer-sponsored or association medical plan, the employee may .opt for alternative medical insurance coverage through the other employer-sponsored or association plan and waives hislher right to the City of Palo Alto’s medical insurance coverage for same individuals. Employees electing alternative coverage and no City coverage will receive cash payments of approximately half of the "’averaged monthly premiums" for their medical insurance coverage. "Averaged monthly premiums" are the average of the Kaiser HMQ, Blue Shield HM© and PERS Choice PPO premiums-for the employee’s City medical coverage available through the Public Employee Retirement System (PERS). The rates for 2004,are :as follows: One Party: $323.35 Two Party: $646.70 Family: $840.71 da) Retiree Medical Provisions Section 1. Monthly City-paid premium contributions for a retiree-selected PEMHCA optional plan will be made in accordance with the Public Employees’ Medical and Hospital Care Act Resolution. Retiree Medical coverage for Unit employees hired after January 1,2004 shall be modified as follows: Twenty (20) year vesting in PERS system for the full retiree medical benefit, including a minimum of five (5) years with the City of Palo Alto. Employees to receive Fifty (50%) percent of benefit after ten (10) years; each additional service credit year after Ten (10) years will increase employer credit by Five (5%) percent until Twenty (20) years is reached at which time employee is eligible for One Hundred (100%) percent and Ninety (90%) percent for dependents. !) 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 $1,500 lifetime maximum for orthodontic benefits. Effective July 1,2001, dental implants in conjunction with one or more missing natural teeth, and removal of implants will be covered as a Major Dental Service at 50% usual, customary and reasonable (UCR.) ¯ b) Dependents will include domestic partners, as defined under Section FF=. 1. b). Active Employee Domestic Partners. 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. Lon.q Term Disability Insurance The City shall provide long term disability insurance with a benefit of 2/3 monthly salary to a maximum of $6,000. Premiums for salaries between $6,000 and $9,000 per month are paid by the employee. 5.Vision Care a) The City shall provide vision care coverage for employee and dependents. Coverage is equivalent to the $20 deductible Vision Services Plan A. b)Dependents will include domestic partners, as defined under Section FE. 1. b). Active Employee Domestic Partners. Manaqement Benefit Proclram Specified amounts under this program will be applied on a pro rata basis for employees who are part time or in a management 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 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. 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 and hardware, intemet access, telecommunications equipment and home office equipment/furniture. Reimbursement for any of these expenses is taxable to the employee. g.Physician-Prescribed Personal Health Program as indicated under 3b of this section. 2.Professional Development Leave Authorized paid leaves of absence for up to one year will be granted in accordance with the following requirements: a.Eligibility is subject to a minimum City service requirement of five years. b.Compensation during the Professional Development Leave shall not exceed 50% salary and full benefits. 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. go Professional Development Leaves shall be based on intemship 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 employees and will be based on an evaluation of each employee’s performance record. Each paid sabbatical leave will be limited to a ]0 maximum of one year and not more than two employees being on leave simultaneously. Sabbatical leaves must be cleared in advance and approved by the City Manager 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.Physical fitness medical examinations for all represented employees will be provided in accordance with Fire Department Physical Fitness Program General Order. Do 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 F. 1 (f) above. 4.Excess Benefit Reimbursement Reimbursement for approved excess benefit expenses will be granted up to a maximum of $2,500, per fiscal year each for Fire Chiefs Association employees and shall include the following benefit items: a.Life insurance premiums for City-sponsored plans, subject to federal and state tax limitations. Do Excess medical/dental expenses for employee and dependents which are not covered 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. 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. 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 Eligibility for management annual leave is limited to 40-hour employees not eligible for overtime in the classifications of Chief Officer-Emergency ©perations and ~44arsh~ Coordinator Environmental Protection. At the beginning of each fiscal year eligible employees will be credited with 80 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. 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 12 HG. Commute Incentives and Parkinq 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 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: $60 for employees participating in a City of Palo Alto employee administered commuter highway vehicle; $40 for employees traveling three or more zones on Caltrain; $40 for employees using the Dumbarton Express, BART, the ACE train or a commuter highway vehicle; $35 for employees traveling less than three zones on Caltrain; $35 for employees using VTA, and other buses. These commuter checks may be used toward the purchase of monthly transit passes, or the cost of participation in commuter highway vehicles. Carpool. The City will provide carpool vouchers worth the value of $30 per month to each eligible employee in a carpool with two or licensed drivers. Bicycle. The City will provide $20 per month bicycle subsidies to eligible employees who ride a bicycle to work. Walk. The City will provide $20 per month walker subsidies to eligible employees who walk to work. IN.REIMBURSEMENT FOR RELOCATION EXPENSE Policy Statement The City of Palo Alto, in rare instances, may wi~ provide a Basic Relocation Benefits Package for a-14 new management employees. Provisions of "Optional Benefits" or portions thereof, are intended only for r-ar-e ~ exceptional circumstances and require the approval of the City Manager or designee. Qualifications In order to ~ be considered for relocation benefits, the following conditions must be met: 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. Provision of Optional Benefits is contingent upon completion of a minimum of two years’ City employment unless a longer term is specified. 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 Counseling - An agency designated by the City will provide relocation information and counseling 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 spouseimate 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. 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, ]4 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: ¯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. Temporary Living Expense - Up to thirty (30) days’ temporary living expenses wi,q may be available under the following guidelines: a.Lod.qin_q - 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. Car Rental - Up to 30 days for a single vehicle is available until such time as the employee’s personal vehicle becomes available. o House Huntinq 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. 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. 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. o Budgeting of all relocation expenses will occur in the Human Resources and Utilities Departments. o Upon approval of the City Manager, provision of benefits under the section House Hunting Expenses and Professional Relocation Counseling may be provided before an employee formally accepts an offer of employment with the City. ]d Ji.Retirement The City shall pay the-mandatory nine percent (9%) 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. Notwithstanding subsection 1. above, upon filing a notice of retirement, the 9% City-paid PERS contribution 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 October 20, 2001, the Public Employees’ Retirement System (PERS) Benefit, known as the "3% at 50" full formula (Section 21362.2) for safety members, was placed into effect by PERS contract amendment. K,J. 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. LK.Meal Allowance Management employees assigned to attend night meetings are eligible to receive reimbursement for o~’+’ ’o~ ........... and ~ .... ,4 ..... I-2 ~o .... ÷_~,~_÷ ........ ÷~,,~,~. up to $12,00 per meal. This provision covers only receipted meals actually taken and submitted for reimbursement. M~=. Vacation Employees assigned to a 40-hour work week schedule will accrue vacation at the following rate for continuous service performed in a pay status. a For employees completing less than four years continuous service the accrual rate shall be 80 hours per year. b For employees completing four, but less than nine years continuous service the accrual rate shall be 120 hours per year. C For employees completing nine, but less than fourteen years continuous service the accrual rate shall be 160 hours per year. d For employees completing fourteen, but less than nineteen years continuous service the accrual rate shall be 180 hours leave per year. e For employees completing nineteen or more years continuous service the accrual rate shall be 200 hours leave per year. Employees assigned to a 56-hour work week schedule (24-hour shift) will accrue vacation at the following rate for continuous service performed in a pay status. a For employees completing less than four years continuous service, the accrual rate shall be five duty shifts per year. b For employees completing four, but less than nine years continuous service, the accrual rate shall be eight duty shifts per year. For employees completing nine, but less than 14 years continuous service, the accrual rate shall be 10 duty shifts per year. For employees completing 14, but less than 19 years continuous service, the accrual rate shall be 11 duty shifts per year. e For employees completing 19 or more years continuous service, the accrual rate shall be 12 duty shifts per year. NM. Vacation Cash Out Once each calendar year an employee may cash out eight or more hours of vacation accrual in excess of 80 hours (or five duty shifts), to a maximum of 80 hours (or five duty shifts), provided that the employee has taken as vacation in the previous 12 months at least the number of hours cashed out. ....= ~.~.~,..~ ..... ...........=~..T ....~p ro g ram ~. ....................................$..500 th0 City of Palo Alto Compensation Plan Palo Alto Fire Chiefs Association-40 Hour Rates & 56 Hour Rates Effective with Pay Period Including 07/01/03 Class Grade Control Approx Approx Approx Num Title Code Point Annual Bi-Wkly Hrly 066 Chief Off-Emeg Oper 28 9,388 112,660 4,333 54.16 116 Battalion Chief Shift 30 8,941 107,290 4,127 51.58 116R Battalion Chief Non-Shift 28 9,388 112,660 4,333 54.16 041 Coord Enivronmental Protection 27 9,314 111,779 4,299 53.74 066E 116E 116RE Chief Off-Emeg Oper-EMT 28 9,670 116,040 4,463 55.79 Battalion Chief EMT Shift 30 9,209 110,509 4,250 53.13 Battalion Chief EMT Non-Shift 28 9,670 116,040 4,463 55.79 NOT YET APPROVED Attachment B RESOLUTION NO. RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING SECTION 1801 OF THE MERIT SYSTEM RULES AND REGULATIONS REGARDING THE MEMORANDUM OF AGREEMENT BETWEEN THE CITY OF PALO ALTO AND THE PALO ALTO FIRE CHIEFS’ ASSOCIATION The Council of the City of Palo Alto does RESOLVE as follows: SECTION I. Section 1801 of the Merit System Rdles and Regulations is hereby amended, to read as fol!ows: "1801. Memorandum of agreement incorporated by reference. That certain Memorandum of Agreement by and between the City of Palo Alto and the Palo Alto Fire Chiefs’ Association, consisting of Preamble and Articles I through XXII, for a term commencing July i, 2003, and expiring June 30, 2004, is hereby incorporated into these Merit System Rules and Regulations by reference as though fully set forth herein. Said memorandum shall apply to al! emp!oyees in classifications represented by said Palo Alto Fire Chiefs’ Association, 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 represented by said Palo Alto Fire Chiefs’ Association." SECTION 2. The changes 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. // // 031028 sm 8120410 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 Fire Chief 031028 sm 8120410 2 MEMORANDUM OF AGREEMENT CITY OF PALO ALTO AND PALO ALTO FIRE CHIEFS’ ASSOCIATION July, g00~2003 through ,June, _aO0-3 2004 PREAMBLE This Memorandum of Agreement between the City of Palo Alto, hereinafter referred to as the "City", and the Palo Alto Fire Chiefs’ Association, hereinafter referred as the "Association", has been prepared and entered into in accordance with Title I, Division 4, Chapter 10, Sections 3500-3510 of the California Government Code and Chapter 12 of the City of Palo Alto Merit System Rules and Regulations. ARTICLE I - RECOGNITION Section 1. The City recognizes the Association as the exclusive representative of an employee group consisting solely of the classifications of Battalion Chief--56 Hour Assignment, Battalion Chief--40 Hour Assignment ~;"~ ~’~ ..... ~-~’~ ’~’-’~ .... ;~ I .... ~ "~1~ and Chief Officer-Emergency Operations, and Coordinator Environmental Protection_who are regularly employed by the City. ARTICLE II - NO DISCRIMINATION Section 1. The Association and the City hereby agree that there shall be no discrimination because of race, color, age, handicap, sex, national origin, sexual orientation, political or religious affiliation under this Agreement. There shall be no discrimination in employment conditions or treatment of employees on the basis of membership or nonmembership in the Association, or participation in the lawful activities of the Association. Section 2. The Association and the City hereby agree to protect the rights of all employees to exercise their free choice to join the Association and to abide by the express provisions of applicable State and local laws. ARTICLE III - PAYROLL DEDUCTIONS Section 1. The City shall deduct Association membership dues and other mutually agreed upon payroll deductions from the bi-weekly pay of member employees. The dues deduction must be authorized in writing by the employee on an authorization card acceptable to the Association and the City. The City shall remit the deducted dues to the Association as soon as possible after deduction. ARTICLE IV - NO STRIKES Section 1. The Association, its representatives, or members, shall not engage in or cause, instigate, encourage, sanction, or condone a strike, withholding of services, leave of absence abuse, work stoppage or work slowdown of any kind against the City of Palo Alto or its citizens by employees covered under this Agreement. No employee shall refuse to cross any picket line in the conduct of Fire Department business, nor shall the Association, its representatives or members discriminate in any way toward anyone who refuses to participate in a strike, or any of the job actions cited above. ARTICLE V - SALARY PROVISIONS Section 1. Salary Range Adjustments. Battalion Chief Salaries shall remain unchan.oed for the term of this A~reement. a-) During the term of this agreement a 16% differential will be maintained between E-step Captain and Battalion Chief-56 Hour Assignment control point. Section 2. EMT Differential. e m oyees nre resentedc ass cations who maintain EMT ce~ification will receive a ~ 3% differential in addition to their base salary. ~ ,-t;l:]’~,.~nt;.,I , ,’11 "~..-~, ~ t’,.,,~ D~. ,,. ~ ~ ~t’t’~C[;,,e k,,,~[N [~]e .........;,~rt ;~l,,A;~ J,,I,, t ~(~(~1 ....1~,,,~,v,,,,.., .’.I,, ~,,cT~.I... ,,.,,,, _, ’" ~’- ’ ~’’" ’""I’"2 1’~’’’’~ ’"~’"~’"~ "’ ’" ~ ......u,,v ARTICLE VI - HOLIDAYS Section 1. 56-Hour Work Week Assignments. Employees assigned to a 56-hour work week schedule will receive 5.75 hours straight time regular pay per pay period in lieu of holidays to a maximum payment of 149.5 hours per year. Section 2. 40-Hour Work Week Assignments. 2 Employees assigned to a 40-hour work week schedule will receive paid holidays in accordance with Sections 517 and 518 of the Merit System Rules and Regulations. ARTICLE VII - VACATION ACCRUAL Vacation will be accrued when an employee is in a pay status and will be credited on a bi-weekly basis. Such accrual balance and credit may not exceed three times the annual rate of accrual. Accrual rates are by work week assignments as indicated in Section 1 and Section 2 below. Section 1. 56-Hour Work Week Assignments. Employees assigned to a 56-hour work week schedule (24-hour shift) will accrue vacation at the following rate for continuous service performed in a pay status. ao bo Co d° eo For employees completing less than four years continuous service, the accrual rate shall be five duty shifts per year. For employees completing four, but less than nine years continuous service, the accrual rate shall be eight duty shifts per year. For employees completing nine, but less than 14 years continuous service, the accrual rate shall be 10 duty shifts per year. For employees completing 14, but less than 19 years continuous service, the accrual rate shall be 11 duty shifts per year. For employees completing 19 or more years continuous service, the accrual rate shall be 12 duty shifts per year. Section 2. 40-Hour Work Week Assignments. Personnel assigned to a 40-hour work week schedule will continuous service performed in a pay status. a. accrue vacation at the following rate for For employees completing less than four years continuous service, the accrual rate shall be 80 hours per year. b.For employees completing four, but less than nine years continuous service, the accrual rate shall be 120 hours per year. c.For employees completing nine, but less than 14 years continuous service, the accrual rate shall be 160 hours per year. 3 d.For employees completing 14, but less than 19 years continuous service, the accrual rate shall be 180 hours vacation leave per year. e.For employees completing nineteen or more years continuous service, the accrual rate shall be 200 hours vacation leave per year. ARTICLE VIII - VACATION CASH OUT Once each calendar year an employee may cash out eight or more hours of vacation accrual in excess of 80 hours (or five duty shifts), to a maximum of 80 hours (or five duty shifts), provided that the employee has taken as vacation in the previous 12 months at least the number of hours cashed out. ARTICLE IX - OVERTIME COMPENSATION FOR BATTALION CHIEF CLASSIFICATIONS Section 1. Employees in the FLSA exempt Battalion Chief classifications will be paid overtime at the rate of time and one-half for hours authorized and worked in excess of the work week schedule (56 hours or 40 hours as scheduled). Shift personnel assigned to overtime relief duty in addition to their regular 56-hour shift schedule shall receive overtime compensation at a rate of one and one-half times the employee’s basic 56-hour rate for all hours of the relief duty shift. Required off-duty training will be compensated at the rate of one and one-half times the basic 40-hour rate, and emergency callback will be compensated at the rate of one and one-half times the basic 40-hour rate to a maximum of eight hours, and at a rate of one and one-half times the basic 56-hour rate for those hours in excess of eight hours. All overtime hours must be pre- authorized by the Fire Chief or designee. ARTICLE X - MANAGEMENT ANNUAL LEAVE--CHIEF OFFICER EMERGENCY OPERATIONS AND FIRE MARSHAL Eligibility for management annual leave is limited to 40-hour employees not eligible for overtime in the classifications of Chief Officer-Emergency Operations and ,~ire M::r~h::l. _Coordinator Environmental Protection._At the beginning of each fiscal year eligible employees will be credited with 80 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. 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. M:magement ,i\nnm~! Leave acc:u’,~! :vi!! be ARTICLE XI - 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 4 eo 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. Professional and trade journal subscriptions. 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. fo Purchase of job related computer software and hardware, internet access, telecommunications equipment and home office equipment!furniture. Reimbursement for any of these expenses is taxable to the employee. ARTICLE XII - EXCESS BENEFIT REIMBL~SEMENT b° 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: a. 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. This includes prescribed medications and copayments as well as over- the-counter druqs, 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. Ro.qaine) are not acceptable. C° do 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. ARTICLE XIII - PHYSICAL EXAMS 5 Physical fitness medical examinations for all represented employees will be provided in accordance with the Fire Department Physical Fitness Program General Order ARTICLE XIV 9ENTAL PLAN CHANGES PEMHCA HEALTH Benefits will be provided in accordance with provisions of the PEMHCA Health Plans. Monthly City-paid premium contributions for an employee-selected PEMHCA optional plan will be mad.g to the maximum amount indicated in each category. Number of Parties Covered Monthly City Contribution Eligible Active Employees Employee Only Premium for plan selected Not to exceed the PORAC Premium Employee Plus One Premium for plan selected Not to exceed the PORAC Premium Employee Plus Two Or More Premium for plan selected Not to exceed the PORAC Premium 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. are eligible for reimbursement of the actual monthly premium cost of an individual health pla~.: not to exceed the individual PORAC monthly premium. Evidence of premium payment will be required with request for reimbursement. ALTERNATE MEDICAL BENEFIT If a regular employee and/or the employee’s dependent(s) are eli2ible for medical insurance through another employer-sponsored or association medical plan, the employee may opt for alternative medical insurance coverage through the other employer-sponsored or association plan and waives his/her right to the City of Palo Alto’s medical insurance coverage for same individuals. Employees electing alternative coverage and no City covera2e will receive cash payments of approximately half of the "averaged monthly premiums" for their medical insurance coverage. "Averaged monthly premiums" are the average of the Kaiser HMO. Blue Shield HMO and PERS Choice PPO premiums for the employee’s City medical coverage available throu2h the Public Employee Retirement System (PERS). The rates for 2004 are as follows: One Party: $323.35 Two Party: $646.70 Family:$840.71 6 DENTAL BENEFITS Section 1. The City will maintain the present level of benefits on the City-sponsored dental program. Maximum benefits per calendar year shall be $2,000. Section 2. The City shall pay all premium payments or equivalent self-insured program charges on behalf of employees and dependents who are eligible and enrolled for coverage under the existing dental plan. Dependents will include domestic partners, as defined under Article XX!, Section 3(b). Section 3. Effective July 1, 2001, dental implants in conjunction with one or more missing natural teeth. and removal of implants will be covered as a Major Dental Service at 50% usual, customary and reasonable (UCR.) a) VISION CARE The City shall provide vision care coverage for employee and dependents. Coverage is equivalent to the $20 deductible Vision Services Plan A. b) Dependents will include domestic partners, as defined under Section E. 1. b). Active Employee Domestic Partners. ARTICLE X\,’ -- RETIREMENT MEDICAL PLAN Section I. Monthly City-paid premium contributions for a retiree-selected PElk, LHCA optional plan will be made in accordance with the Public Employees’ Medical and Hospital Care Act Resolution. Retiree Medical covera__.e for Unit employees hired after Januars’ 1, 2004 shall be modified as follows: Twenty (20) year vesting in PERS system for the full retiree medical benefit, including a minimum of five (5) years with the City of Palo Alto. Employees to receive Fifty (50%) percent of benefit after ten (10) years: each additional service credit year after Ten (10) years will increase employer credit by Five (5%) percent until Twenty (20) years is reached at which time employee is eligible for One Hundred (100%) percent and Ninety (90%) percent for dependents. ARTICLE XVI - BASIC LIFE INSURANCE The City shall provide a basic life and AD & D insurance plan in an amount equal to the employee’s annua! basic compensation (rounded to the next hi_.qhest $1.000), ARTICLE XVII - LONG TERM DISABILITY INSURANCE The City shall provide long term disability insurance with a benefit of 2/3 monthly salary to a maximum of $6.000. Premiums for salaries between $6.000 and $9,000 per month are paid by the employee. ARTICLE XVIII - EFFECTIVE DATE OF BENEFIT COVERAGE FOR NEW EMPLOYEES For newly-hired regular employees coverage begins on the first day of the month following date of hire for the health plan, dental plan, vision care plan, life insurance and long term disability plans if these benefits are elected. ¯ Pursuant ’,;-, " PERS contrac’, amendment, the Cit’,’ may in~p!ement a retiree medica! l;!o.,, ~; .... t,,,’, .... ~ ~~ ....... ~ ...... ~’,.~ PE~S ................... 1 coverage. 8 ARTICLE XIX - VOLUNTARY COST SAVING MEASURES Unit members agree to participate in the following voluntary cost saving measures to achieve a net savings equal to One (1%) percent of unit salaries. ¯Take unpaid time off (XX time) in lieu of vacation. ¯Take unpaid time off during work shifts if staffing and operational constraints permit. ¯Donate vacation time. XX time shall not be taken if it would result in overtime coverage. XX time may be taken in eight (8) hour increments. These voluntary measures will stay in effect until a new agreement is negotiated and approved. ARTICLE XtX - RESIDENCY For purposes of emergency response availability, represented employees shall live within 90 miles travel distance of the city limits of Palo Alto. This provision shall not apply to represented employees appointed to the Battalion Chief classification prior to 1990. ARTICLE XXI - FULL UNDERSTANDING Section 1. The Memorandum of Agreement contains the full and entire understanding of the parties regarding the matters set forth herein. Section 2. Severabilitv. Should any of the provision herein contained be rendered or declared invalid by reason of any State or Federal legislation, or by ruling of any court of competent jurisdiction, such invalidation of such part or portion of this Memorandum of Ageement shall not invalidate the remaining portions hereof, and they shall remain in full force and effect, insofar as such remaining portions are severable. Section 3. It is the intent of the parties that ordinances, resolutions, rules and regulations enacted pursuant to this Memorandum of Agreement be administered and observed in good faith. Section 4. Nothing in this Memorandum of Agreement shall preclude the parties from mutually agreeing to meet and confer on any subject with the scope of representation during the term of this agreement. ARTICLE XXII - DURATION This Memorandum of Agreement shall become effective July 1, _aCg~ 2003 and remain in effect until June 30, ~ 2004. EXECUTED: FOR: PALO ALTO FIRE CHIEFS’ ASSOCIATION FOR: CITY OF PALO ALTO s/Tony Spitaleri s/Leslie Loomis s/Donald Dudak s/Ruben Grijalva s/George McDonald s/Dan Lindsey 10