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HomeMy WebLinkAbout2002-02-04 City Council (5)City of Palo Alto City Manager’s Report 3 TO:HONORABLE CITY COUNCIL FROM:CITY MANAGER DEPARTMENT:HUMAN RESOURCES DATE: SUBJECT: FEBRUARY 4, 2002 CMR: 134:02 APPROVAL OF RESOLUTION 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’ ASSOCATION, AND RESOLUTION ADOPTING COMPENSATION PLAN FOR FIRE CHIEFS’ ASSOCIATION MANAGEMENT PERSONNEL RECOMMENDATION Staff recommends that Council: 1. Approve the attached resolution 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 management personnel. 2. Adopt a Compensation Plan for the Fire Chiefs’Association management personnel effective for the pay periods including July 1, 2000 through June 30, 2003. BACKGROUND The City’s agreement with the Fire Chiefs’ Association management personnel which represents six fire management positions expired on June 30, 2000. During the last several months, City staff members and members of the Fire Chiefs’ Association management personnel have been negotiating a new contract and have reached a tentative agreement. DISCUSSION The agreement closely tracks the provisions of the Memorandum of Agreement with the International Association of Fire Fighters (IAFF, Local 1319), including the provision for the Public Employees’ Retirement System (PERS) benefit, known as the "3% at 50" full formula (Section 21362.2) for safety members. The new Memorandum of Agreement and Compensation Plan for the Fire Chiefs’ Association provides for salary range adjustments of 5% effective July 01, 2000, 2% effective January 1, 2001, 5% July 1, CMR: 134:02 Page 1 of 1 2001 and 5% July 1, 2002 as well as adjustments to EMT differentials and minimal benefit changes as stated in the agreement as attached. RESOURCE IMPACT The costs for the proposed Fire Chief’s Compensation Plan control point increases are $45,366 (effective July 1, 2000), $9,527 (effective January 1, 2001), $48,111 (effective July ~, 2001), and $50,516 (effective July 1, 2002). The 2001-02 Adopted Budget includes full funding in the General Fund salary contingency for the amounts to be paid in the current fiscal year. As estimated by CalPERS, the annual costs of the 3% at 50 benefit is approximately 12% of Fire Chiefs salary expense or $121,239. The 2001-02 Adopted Budget includes full funding of this benefit, as the current employer PERS contribution rate is below the amount budgeted. Future year funding of this benefit may be required if the employer PERS contribution rate increases above the budget level.Other compensation plan changes are cost neutral. POLICY IMPLICATIONS This recommendation does not represent any change to existing City policies. ENVIRONMENTAL REVIEW This is not a project under the California Environmental Quality Act (CEQA). ATTACHMENTS 1. 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 2.Resolution of the Council of the City of Palo Alto Adopting a Compensation Plan for Palo Alto Fire Chiefs’ Association management personnel. PREPARED BY: APPROVED BY: Helen Del Grosso, Manager Employee Relations & Compensation JAY NDS Director of Human Resources CITY MANAGER APPROVAL: EMILY HARRISON Assistant City Manager Page 2 of 2CMR: 134:02 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 Rules and Regulations is hereby amended, to read as follows: "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 XX, being 8 (eight) pages in length, for a term commencing July i, 2000, ~and expiring June 30, 2003, is hereby incorporated into these Merit System Rules and Regulations by reference as though fully set forth herein. Said memorandum shall apply to all employees 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 sha!l 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. // // 020129 cl 8120254 ’1 SECTION 3. The Council finds that this is not a project under the California Environmental Quality Act and, therefore, no environmental impact assessment is necessary. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: City Clerk APPROVED AS TO FORM: Mayor APPROVED: Senior Asst. City Attorney City Manager Director of Human Resources Director of Administrative Services Fire Chief 020129 cl 8120254 2 <i MEMORANDUM OF AGREEMENT CITY OF PALO ALTO AND PALO ALTO FIRE CHIEFS’ ASSOCIATION July, ~000 throuqh June, 201~3 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, Fire Marshal (~_~i~~til."~une:~30;200!) and Chief Officer-Emergency ,M~d!c~l Operations, 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. a. #ffect!ye-wlth.;,t.he-~pay. per~od:!,ncludln, g.3uly:~;.1.i _20,Qo,~.a~.Syo d,,~-~.:E,ffect~ve w~th,the .pay period.: nc ud~ngduly:l;2OO2,’:a.-SYo’~ncrease~w~llbeapphe~,to.the e.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. Effective beginning with the pay period including January 1, 1999, employees in represented classifications who maintain EMT certification will receive a 2% differential in addition to their base salary. ~he:;~,d_!~fei, ential:,w~ll~:~ncreasel fro ,re:2 ’~ ~to 2,.5~ yo e~fect~ve w~th ,,the~paypenod :~c udln.g ,-J U~I~I,,! ;~"~200~!~i and 2 ARTICLE Vl - HOLIDAYS Section 1. 56-Hour Work Week Assiqnments. 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 Assiqnments. 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. Such accrual rate~ ar~ ~,,~.,.,~,v~.. ~,,~,, ~,,~ r.,~.~.] rJ~=,v~ ,,,~,~.~.~ ~,y ,~ ,~ . Section 1. 56-Hour Work Week Assiqnments. 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. c.For employees completing nine, but less than 14 years continuous service, the accrual rate shall be 10 duty shifts per year. d.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. 3 Section 2. 40-Hour Work Week Assiqnments. Personnel assigned to a 40-hour work week schedule will accrue vacation continuous service performed in a pay status. a. 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. For employees completing 14, but less than 19 years continuous service, the accrual rate shall be 180 hours vacation leave per year. For employees completing nineteen or more years continuous service, the accrual rate shall be 200 hours vacation leave per year. ARTICLE I~ - OVERTIME COMPENSATION FOR BATTALION CHIEF CLASSIFICATIONS Employees in the FLSA exempt Battalion Chief classification~ 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 ass!gned 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. future ....... I of ! 4 ARTICLE X - MANAGEMENT ANNUAL LEAVE--CHIEF OFFICER EMERGENCYOPERATIONS~ AND FIRE MARSHAL ,,~t the be g ~nn~n g of each fiscal y ear e!~,g,_~..~,~ble em p Io yees w~ll be credited w=th 81~ hours of annual leave which may be taken as paid time off, added to vacation accrual (subject to vacation accrual limitations), taken as cash or taken as deferred compensation. When t!mo off 18 t~k~n ~ Entitlement un~r t~is provision ~ill ~ r~u~ on ~ promt~ ~sis for p~-tim~ status, or ~or~ing to t~ number of months in p~i~ status ~uring t~ fiso~l y~r. Unus~ ~l~n~s ~s of t~ ~n~ of t~ fiscal ~r will ~ employee. ~#~tr~d~l~Ve.a~crUa~ !~’.be~dis~qonti,~-~f~~:t~e’ ~jr~M~aE~ai ~dl~ssifi,~~ ARTICLE Xl - 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: Civic and professional association memberships Conference participation and travel expenses 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. eo Professional and trade journal subscriptions. S’~ .,ect~tod.n.terna! Reve~lue ~Serwce.,r.egulati0ns .and w~t the.~wr~tte ’pres.£npt~o ~fi~a.~med~c~l d~gto~:~?~.a?e~ !# e’e’.ma.’.--.be~ire~ml~ursed .for;a.- ersonal~.i3ealth~ P~u[chase of job related computer software and hardware, 5 ARTICLE Xll - EXCESS BENEFIT REIMBURSEMENT Reimbursement for approved excess benefit expenses will be granted up to a maximum of $2,500 per fiscal year each for management and confidential employees and shall include the following benefit items: 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. 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. ARTICLE Xlll - PHYSICAL EXAMS Physical fitness medical examinations for all represented employees will be provided in accordance with the Fire Department Physical Fitness Program General Order 6 A, RTICI~E ~,XVI,~~- ,ACTIVE EMPLOYEE DOMESTIC PARTNERS ARTICLE,XvIi : CITY OPTIONS ARTICLE xVIil - 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 XlX - 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. Severability. 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 Agreement 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. 7 ARTICLE XX - DURATION This Memorandum of Agreement shall become effective July 1, ~i0,0,0~ and remain in effect until June 30, 200~. EXECUTED: FOR: PALO ALTO FIRE CHIEFS’ ASSOCIATION FOR: CITY OF PALO ALTO s/Tony Spitaleri s/Jay Rounds s/Donald Dudak s/Ruben Grijalva s/George McDonald s/Dan Lindsey 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 NO. 8011 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 Compensation Plan, as set forth in° Exhibit "A" attached hereto and made a part hereof by reference, is hereby adopted for the Palo Alto Fire Chiefs’ Association management personnel effective retroactively to the pay period including July i, 2000, through June 30, 2003. SECTION 2. The Compensation Plan adopted herein shall be administered by the City Manager in accordance with the Merit System Rules and Regulations. SECTION 3. The Compensation Plan shall continue in effect 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 the preparation of forthcoming payrolls. II II II II II II II SECTION 5.Resolution No. 8011 is hereby rescinded. 020128 cl 8120253 SECTION 6. under the California Environmental Quality Act no environmental impact assessment is necessary. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: The Council finds that this is not a project and, therefore, City Clerk APPROVED AS TO FORM: Mayor APPROVED: Senior Asst. City Attorney City Manager Director of Human Resources Director of Administrative Services Fire Chief 020128 cl 8120253 2 CITY OF PALO ALTO COMPENSATION PLAN Fire Chiefs Association Manaqement Personnel Effective:Pay period including July 1, -1-999 2000 through June 30, 2~00 2003 COMPENSATION PLAN FOR THE CITY OF PALO ALTO Fire Chiefs Association Mana.qement Personnel SECTION I. COMPENSATION This section applies to all regular Fire Chief Association management classifications including Battalion Chief, Chief Officer-Emergency Operations and Fire Marshall (only until June 30, 2001). A.Mana.qement 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 -I-,=5-% 20% above the control point. Actual salary within the range is determined by performance. The normal working range within which most actual salaries will fall will be within + 5% of the control point. As needed, 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 a one- time 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 -14=5% 20% above the control point. Fixed salary increases may be earned in accordance with administrative guidelines based on growth within the position and performance which meets or exceeds position standards. In addition, employees may earn Variable Management Compensation by meeting or exceeding objectives established under the annual performance planning and appraisal system. Variable Management Compensation requalification is necessary for each appraisal period. Compensation Adjustment Authorization. Each year the. City Manager will propose for Council approval a compensation adjustment authorization which will include amounts sufficient to implement base pay increases and Variable Management Compensation. SalaryRan.qe Adiustments. a.Effective with the pay period including July 1, 2000, a 5% increase will be applied to the control points of all represented classes. , bo Effective with the pay period including January 1,2001, a 2% increase will be applied to the control points of all represented classes. . c.Effective with applied to the d.Effective with applied to the the pay period including July 1, 2001, a 5% increase will be control points of all represented classes. ’ ~ the pay period including July 1, 2002, a 5% increase will be control points of all represented classes. e.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.Mana.qement Compensation Adiustment 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 4-,=5% 20% above the control point for the individual position grades authorized in the Tab of this plan. 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 ~,~.,v~ ~,,,,~,~,~.~.,~,, .,~ ,~ ~ ~,,~ ,~,~..,~,~ ~,.~ vv~,,~,, ~,v~, v, .,,~ *;~ P!~n, 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 ove~ime compensation at a rate of one and one-half times the 4 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. 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. EMT Differential Effective beginning with the pay period including January 1, 1999, employees in represented classifications who maintain EMT certification will receive a 2% differential in addition to their base salary. The differential will increase from 2% to 2.5% effective with the pay period including July 1,2001, and from 2.5%to 3% effective with the pay period including July 1,2002, D. Uniform Purchase Plan Uniforms including cleaning will be provided with replacement provisions on an as- needed basis in conformance with department policy. E. 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 The City shall pay all premium payments on behalf of employees and dependents who are eligible for the employee-selected Public Employees’ Medical and Hospital Care Act (PEMHCA) optional plan. a) Retiree Medical Provisions 1)Monthly City-paid premium contributions for a retiree-selected PEMHCA optional plan will be made as provided under the Public Employees’ Medical and Hospital Care Act. b)Active Employee Domestic Partners Effective July 1,2001, active employee domestic partners who meet the requirements of the City of Palo Alto Declaration of Domestic Partnership, and are registered with the Human Resources Department, will be eligible for reimbursement of the actual monthly premium cost of an individual health plan, not to exceed the m,,er-age maximum monthly premium cost of individual coverage under the PEMHCA health plans. Evidence of premium payment will be required with request for reimbursement. 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, customaryand reasonable (UCR.) b)Dependents will include domestic partners, as defined under Section E. 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 E. 1. b). Active Employee Domestic Partners. 6.City Options At City’option during the life of this agreement and if otherw!se aya!!able: _ ¯Pursuant to a PERS contract amendment, the. City.~may i.mplement a retiree medical vesting schedule for new employees hired after the effective date of the PERS contract amen,dment. . .- " ~ ¯The City may offer, on a voluntary basis, an incentive in lieu of City-paid dependent or family medical coverage. ~ F.Mana.qement Benefit Pro,qram 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. 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 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. eo 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, internet access, telecommunications equipment and home office equipment/furniture. Reimbursement for any of these expenses is taxable to the employee. f.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. Co 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 activ.ity shall be adequately covered during his/her absence with emphasis on the development of subordinates. f.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 employees and will be based on an evaluation of each employee’s performance record. Each paid sabbatical leave will be limited to a 8 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 Pro.qram - Physical Fitness a.Physical fitness medical examinations for all represented employees will be provided in accordance with Fire Department Physical Fitness Program General Order. 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. b.Excess medical/dental expenses for employee and dependents which are not covered by existing City-sponsored plans. c.Excess professional development items which are otherwise approved, to the extent they are not paid or reimbursed under any other plan of the City. do Dependent care expenses under the City’s Dependent Care Assistance Program (DCAP), subject to the following limits: Dependent care expenses will be reimbursed only to the extent that the amount of such expenses reimbursed under this Management Benefit Program, when added to the amount (if any) of annual dependent care expenses that the participant has elected under the City’s Flexible Benefits Plan, do not exceed the maximum permitted under the DCAP. 1)The annual amount submitted for reimbursement cannot exceed the income of the lower-paid spouse. 2)The expenses must be employment-related expenses for the care of one or more dependents who are under 13 years of age and entitled to a dependent deduction under Internal Revenue Code section 151 (e) or a dependent who is physically or mentally incapable of caring for himself or herself. 3) 4) The payments cannot be made to a child under 19 years of age or to a person claimed as a dependent. 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.Manaqement Annual Leave Eligibility for management, annual leave is limited to 40-,hour employees not eligible for overtime in the classifications of Chief Officer-Emergency Operations and Fire Marshal. ’-"’-"" ...... ~÷h ÷~, ....... r~,,,4 ~,-,,-h.,4;,~,~ f..~,, t t 99?, At the beginning of each fiscal year eligible,,,~-,,.,,r ....~o, ’~, ,,,.,,,,~...,,,,~, ,.÷ employees will be credited with 64 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. I:;~_h.....h;f’l- ....rL- ......;11 F, .........÷,~,4 ~+ ÷h,-, ,~’~_h ......÷,~ Entitlement under this provision will be reduced on a prorated basis for part-time status, or according to the number ot months Jn paid status during the fiscal year. Unused balances as of the end of the fiscal year will be paid in cash unless a ]0 different option as indicated above is elected by the employee. Management Annual Leave accrual will be discontinued for ~"~’~ ......,.~ooo~f~,.o÷~,-,,~ ,-,.,.,.,~,,~ h,~,,, t a ~ aaa the Fire Marshal classification effective with the pay period including July 1,2001. G.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 veuehers commuter checks may be used toward the purchase of a 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..,v~v,..h; ....~ ...............,,..,~h .............,.,*h ÷h,..,,.. value v, ’-’f $20 per month bicycle subsidies to eligible employees who ride a bicycle to work, ]] Walk. The City will provide wn!ker ......v..~.v, ,.~,.." ....... .....,., ,"~’ ÷~’,,.., .... ...,..~ .... ~,~ $20 per month walker subsidies to eligible employees who walk to work. ~h, ,,~ ......... .~,,~,~ ,,,~~ ....... REIMBURSEMENT FOR RELOCATION EXPENSE Policy Statement The City of Palo Alto will provide a Basic Relocation Benefits Package for all new management employees. Provisions of "Optional Benefits" or portions thereof, are intended only for rare instances and require the approval of the City Manager or designee. Procedure Qualifications In order to qualify 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. Existing employees promoted to a covered position are not eligible. Record-keeping requirements will parallel those required for reimbursement for travel, conferences and meetings. expense 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. 12 Basic Package Professional Relocation Counselinq - 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 spouse/mate and at 50 percent of the employee rate for dependents. Travel days allowed are limited to the actual mileage divided by 350 miles per day. Lodging is reimbursed in full on an actual and reasonable basis for all family members. Household Goods Shipment - Full costs will be paid for the shipment of all personal items normally considered "Household ,Goods." Items excluded include recreational vehicles, firewood, building materials, sand, boats, airplanes, and perishable items such as food or plants. Shipment of up to two automobiles is permitted. Storage of household goods will be provided for 30 days. Optional Benefits Sale and Purchase Costs - The City will reimburse costs that arise in the sale and/or purchase of residences including: a.Real estate commissions on the sale of the former residence up to six (6) percent of the sales price. b.The employee’s portion of non-recurring closing costs on both sale and purchase of residences limited to the following: ¯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 Livin.q Expense - Up to thirty (30) days’ temporary living expenses will be available under the following guidelines: a.Lodc~inc~ - 100 percent of actual and reasonable costs for all family members. bo Per Diem - 100 percent of the established City rates for employee and spouse/mate, and 50 percent of the established City rate for dependents for the first 15 days; 50 percent of the established City rate for employee and spouse/mate, and 25 percent of the established City rate for dependents over the last 15 days. c.Car Rental - Up to 30 days for a single vehicle is available until such time as the employee’s personal vehicle becomes available. House Huntin.q 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: bo Costs arising from the need to break an existing lease up to a total payment of three times the current monthly rental rate. The first and last month’s rent to a maximum of $3,500 on a Palo Alto area rental accommodation. Re.qulations 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. 14 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. 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. Budgeting of all relocation expenses will occur in the Human Resources and Utilities Departments. 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. I.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. Em.ployee 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. 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 Ko Lo 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. Meal Allowance Management employees assigned to attend night meetings are eligible to receive reimbursement for actual expenses up to the dinner rate limit established in Policy and Procedures 1-2 for out-of-town meetings. This provision covers only receipted meals actually taken. 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. For employees completing nine, but less than fourteen years continuous service the accrual rate shall be 160 hours per year. 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 ~chedule (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. d 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. 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 ofS0 ~:~- :: 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. M. N.Employee Referral Proqram Effective March 8, 1999, and subject to administrative policiesand procedures, the Employee Referral Program provides cash award in the amount of $1,500 for the referral, and subsequent hiring, of qualified candidates for designated positions which have been identified as difficult to fill by the Director of Human Resources. Whon 3~ ..o,~,4~,4o÷,~ ~o ~.~,4 ÷~,-, An initial award ($750) will appea-~ be given to the referring employee when a referral candidate is hired o~ ÷. ....~ ....., .......~,,.~. o~~’ ’" "’ ’ ’1"’’.)’ "" "" T-’~"3’’’ ’’~’" "~’t~x3blc incomo. The remaining balance ($750) will be credited at the successful completion of the new employee’s probationary period, provided that the referring employee and new hire are still active employees. O.Backup Child Care The City of Palo Alto will provide Backup Child Care through a third-party provider, in accordance with the "City of Palo Alto Backup Child Care Plan." City of Palo Alto Compensation Plan Palo Alto Fire Chiefs Association-40 Hour Rates Effective with Pay Period Including 07/01/00 Class Grade Control Approx Approx Approx Num Title Code Point Annual Bi-Wkly Hrly 066 Chief Off-Emeg Oper 28 8,349 100,183 3,853 48.16 116 Battalion Chief Shift 30 7,951 95,407 3,670 45.87 116R Battalion Chief Non-Shift 28 8,349 100,183.3,853 48.16 191 Fire Marshall 28 8,349 100,183 3,853 48.16 066E Chief Off-Emeg Oper-EMT 28 8,516 102,186 3,930 49.13 116E Battalion Chief EMT Shift 30 8,110 97,315 3,743 46.79 116RE Battalion Chief EMT Non-Shift 28 8,516 102,186 3,930 49.13 191E Fire MarshalI-EMT 28 8,516 102,186 3,930 49.13 Effective with Pay Period Including 01/01/01 Class Grade Control Approx Approx Approx Num Title Code Point Annual Bi-Wkly Hrly 066 Chief Off-Emeg Oper 28 8,516 102,186 3,930 49.13 116 Battalion Chief Shift 30 8,110 97,315 3,743 46.79 116R Battalion Chief Non-Shift 28 8,516 102,186 3,930 49.13 191 Fire Marshall 28 8,516 102,186 3,930 49.13 066E Chief Off-Emeg Oper-EMT 28 8,686 104,230 4,009 50.11 116E Battalion Chief EMT Shift 30 8,272 99,262 3,818 47.72 116RE Battalion Chief EMT Non-Shift 28 8,686 104,230 4,009 50.11 191 E Fire MarshalI-EMT 28 8,686 104,230 4,009 50.11 ~,3..~,’~’~’,’,’~ -_?-.’L.~:<F :" ~,~’"-’~,,~"~ ,~ ’~L~2~t%~.’2~-w~@7~" Effective with Pay Period Including 07/01/01 Class Grade Num Title Code 066 Chief Off-Emeg Oper 28 116 Battalion Chief Shift 30 116R Battalion Chief Non-Shift 28 Control Approx Approx Approx Point Annual Bi-Wkly Hrly 8,941 107,296 4,127 51.58 8,515 102,181 3,930 49.13 8,941 107,296 4,127 51.58 066E Chief Off-Emeg Oper-EMT 28 9,165 116E Battalion Chief EMT Shift 30 8,728 116RE Battalion Chief EMT Non-Shift 28 9,165 Effective with Pay Period Including 07/01/02 Class Grade Control Num Title Code Point 066 Chief Off-Emeg Oper 28 8,941 116 Battalion Chief Shift 30 8,515 116R Battalion Chief Non-Shift 28 8,941 109,978 4,230 52.87 104,736 4,028 50.35 109,978 4,230 52.87 Approx Approx Approx Annual Bi-Wkly Hrly 107,296 4,127 51.58 102,181 3,930 49.13 107,296 4,127 51.58 066E Chief Off-Emeg Oper-EMT 28 9,165 116E Battalion Chief EMT Shift 30 8,728 116RE Battalion Chief EMT Non-Shift 28 9,165 109,978 4,230 52.87 104,736 4,028 50.35 109,978 4,230 52.87