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HomeMy WebLinkAbout2001-10-15 City Council (6)City of Palo Alto City Manager’s Report TO:HONORABLE CITY COUNCIL FROM:CITY MANAGER DEPARTMENT: HUMAN RESOURCES DATE: SUBJECT: OCTOBER 15, 2001 CMR: 377:01 APPROVAL OF RESOLUTIONS AMENDING COMPENSATION PLAN FOR MANAGEMENT, CONFIDENTIAL AND HOURLY PERSONNEL, AND AMENDING THE MERIT SYSTEM RULES AND REGULATIONS RECOMMENDATION This report recommends Council approval of the attached resolutions adopting compensation plan for Management and Confidential personnel and Hourly employees, effective for the pay periods including July 1, 2001 through June 30, 2002. Also recommended is approval of the attached resolution amending the Merit System Rules and Regulations to incorporate the amended compensation plan for Management and Confidential personnel. DISCUSSION Management and Confidential Employees Effective with the pay period including July 1, 2001, the compensation plan provides for a 6 percent control point increase to 175 Management and Confidential classifications. Under the Management Compensation Plan, control point adjustments are not automatically passed on to employees. Individual employee salaries are authorized by department heads, based upon performance. In addition to the control point increase, amendments to the Management and Confidential Compensation Plan include special control point adjustments to 45 management classifications, based upon external salary survey data and supervisory differential considerations. These adjustments are included in Attachment A. Other compensation plan changes are similar to those authorized this year for other employee groups and include: Modification of the Employee Domestic Partner health plan reimbursement will provide for reimbursement up to the maximum monthly rather that average monthly PERS Health Plan premium cost CMR: 377:01 Page 1of 3 ¯Under the dental plan, dental implants will be covered at 50% of usual and customary charges, as an alternative to crowns. ¯Group benefit coverage for Health, Dental, Vision, Life and Long-Term Disability will now become effective for all new employees on the first day of the month following hire. ¯Consistent with other safety bargaining units, the PERS retirement benefit formula known as "3% at 50%" will become effective for management safety members. ¯The minimum vacation accrual rate is increased from 80 to 120 hours and conditional vacation cash out option is added. Hourly Employees The salary ranges for 35 hourly classifications will be increased by 5 percent, effective with the pay period including July 1, 2001, in order to maintain salary ranges at a competitive level. The full text of the compensation plan is attached with changes highlighted. RESOURCE 12VIPACT The annual cost for the proposed Management and Confidential Compensation Plan control point increase and the Hourly employee salary range increase is $2,280,000 with $1,596,000 in General Fund expenditure and $684,000 in Enterprise fund expenditure. The 2001-03 Adopted Budget includes approximately $1,069,600 in the General Fund salary contingency for Management/Confidential and Hourly employees and full funding for increases within the Enterprise Funds. A comprehensive BAO transferring the remaining $526,400 in necessary funding from the Budget Stabilization Reserve will be presented for approval as part of the midyear report. Additional salary contingency funds will be used in the interim if necessary. As estimated by CalPERS, the annual costs of the 3% at 50 retirement benefit is approximately 12% of Fire management salaries and 9.7% of Police management salaries, or $162,500. The 2001-02 Adopted Budget includes full funding of this benefit, as the current employer PERS contribution rate is below the budget level. 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 The action recommended by this report is consistent with City Council direction. ENVIRONMENTAL REVIEW This is not a project under the California Environmental Quality Act (CEQA). CMR: 377:01 Page 2of 3 ATTACHMENTS Attachment A - Attachment B - Attachment C - Attachment D - Special Control Point Adjustments Resolution Adopting a Compensation Plan for Management and Confidential Personnel Resolution Adopting a Compensation Plan for Hourly Employees Resolution Amending the Merit System Rules and Regulations PREPARED BY: Erica Gindraux, Human Resources Representative DEPARTMENT HEAD: ~. ROUNDS Director of Human Resources CITY MANAGER APPROVAL EMIL~-HARRISON Assistant City Manager CMR: 377:01 Page 3of 3 Attachment A SPECIAL ADJUSTMENTS Effective Pay Period Including Date 07/01/01 Control Point Adjustments Class Number Title To From Change 160 Mgr Solid Waste 34 37 7.5% 062 Supervisor Recycling Program 48 51 7.5% 093 Environmental Control Mgr 37 39 5.0% 041 Coord Environ Protection 28 30 5.0% ¯ 131 Director of Libraries 21 23 5.0% 175 Mgr Main Lib Svcs 34 36 5.0% 179 Mgr Field & Customer Serv 30 32 5.0% 150 Mgr Utility Mktg Svcs 30 32 5.0% 068 Mgr Utility Rates 30 32 5.0% 048 Mgr Utility Telecomm 25 27 5.0% 034 Sr Market Analyst 37 39 5.0% 042 Supv Util Mtr Rd & Fld 41 43 5.0% 036 Utility Key Acct Rep 40 42 5.0% 037 Utility Market Analyst 44 46 5.0% 166 Supervisor Police Svcs 41 43 5.0% 058 Supv Recreation Program 42 44 5.0% 098 Adm Special Events 40 42 5.0% 153 Coordinator Child Care 42 44 5.0% 137 Dir Rec & Open Space 24 26 5.0% 144 Supt Recreation 32 34 5.0% 169 Supv Jr Museum 43 45 5.0% 192 Mgr Comm Svc Fac 40 42 5.0% 173 Supt Parks 36 38 5.0% 194 Dir Parks & Golf Course 25 27 5.0% 183 Supt Golf Course 36 38 5.0% 172 Supt Open Space & Science 33 35 5.0% 154 Supervisor Parks 40 42 5.0% 083 Supervisor Golf Course 40 42 5.0% 090 Architect/Park Planner 37 39 5.0% S:HRD/ercomp/mgmt-conf SpecAdj01 .xls Class Number Title To From Change 075 Deputy Director Pub Works Opns 25 27 5.0% 165 Supt Pub Works Opns 31 33 5.0% 092 Mgr Maintenance Opns 35 37 5.0% 127 Fleet Manager 34 36 5.0% 168 Asst Fleet Manager 41 43 5.0% 072 Dir Community Svcs 16 18 5.0% 139 Fire Chief 16 17 2.5% 060 Deputy Fire Chief 23 24 2.5% 032 Manager, Info Tech 30 31 2.5% 091 Business Analyst 37 38 2.5% 195 Coord Police Tech Svcs 28 29 2.5% 128 Dep Dir ASD/Chief Info Off 26 27 2.5% 110 Mgr Tech Support 35 36 2.5% 033 Sr Technologist 34 35 2.5% 056 Technologist 37 38 2.5% 081 Dir Administrative Svcs ! 5 16 2.5% S:HRD/ercomp/mgmt-conf SpecAdj01 .xls RESOLUTION NO. RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING SECTION 1701 OF THE MERIT SYSTEM RULES AND REGULATIONS The Council of the City of Palo Alto does RESOLVE as follows: SECTION i~ Section 1701 of the Merit System Rules and Regulations to read as follows: "1701. Compensation Plan for Management and Confidential Personnel and Council Appointees incorporated by reference.That certain Compensation Plan entitled "City of Palo Alto Compensation Plan--Management and Confidential Personnel and Council Appointees," effective the pay period includfng July !, 2001 through June 30, 2002, hereby is incorporated into these Merit System Rules and Regulations by reference as though fully set forth -herein. Said Compensation Plan shal! apply to al! management and confidential employees and Council appointees, except where specifically provided otherwise herein. In the case of conflict with this chapter and any other provisions of the Merit System Rules and Regulations, this chapter will prevail over such other provisions as to employees in classifications covered by said Compensation Plan." SECTION 2. The changes to the Merit System Rules and Regulations provided for in this resolution shal! 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. // // // 010917 cl 0032488 1 SECTION 3. The Council finds that this is not a project under the California Environmental Quality Act and, therefore, no environmenta! 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 010917 cl 0032488 2 RESOLUTION NO. RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO ADOPTING A COMPENSATION PLAN FOR MANAGEMENT AND CONFIDENTIAL PERSONNEL AND COUNCIL APPOINTED OFFICERS AND RESCINDING RESOLUTION NOS. 8000, 8027, 8060, and 8073 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 management and confidential personnel and Council appointed officers effective retroactive to the pay period including July i, 2001. SECTION 2. The Compensation Plan as adopted herein shall be administered by the City Manager in accordance with the Merit System Rules and Regulations. SECTION 3. The Compensation Plan shall continue in effect unti! amended or revoked by the Council. SECTION 4. The Director of Administrative Services hereby is authorized to implement the Compensation Plan adopted herein in his preparation of forthcoming payrolls. He is further authorized to make changes in the titles of employee classifications identified in the Table of Authorized Personnel contained in the 2001-2002 budget, if such titles have been changed in the Compensation Plan. SECTION 5. Resolution Nos. 8000, 8027, 8060 and 8073 are hereby rescinded. // // // // // // 010917 cl 0032489 1 SECTION 6. The Council finds that this is not a project under the California Environmental Quality Act, and, therefore, no environmental impact assessment is necessary. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: City Clerk APPROVED AS TO FORM: Mayor APPROVED: Senior Asst. City Attorney City Manager Director of Human Resources Director of Administrative Services 010917 cl 0032489 2 CITY OF PALO ALTO COMPENSATION PLAN Management and Confidential Personnel And Council Appointees Effective:Pay period including July 1, 2-000-~0~ through June 30,200-1~20~0~ COMPENSATION PLAN FOR THE CITY OF PALO ALTO Management and Confidential Personnel SECTION I. COMPENSATION This section applies to all regular management and confidential positions except Council Members and Council-appointed officers. Notwithstanding this exception, the Council may authorize Variable Management Compensation for Council-appointed officers. Each Council-appointed officer shall be the responsible decision-maker under this Plan for those employees in departments under his/her control. Ao Management and Confidential Compensation Policy The City’s policy for management and confidential compensation is to establish and maintain a general structure based on marketplace norms and internal job alignment with broad compensation grades and ranges. Structures and ranges will be reviewed annually and updated as necessary based on marketplace survey data, internal relationships, and City financial conditions. Individual compensation adjustments will be considered by the Council-appointed officer based on (1) performance factors including achievement of predetermined objectives; (2) pay structure adjustments; and (3) City financial conditions. Basic Plan Elements Structure. The compensation plan includes separate multi-grade structures for both management and confidential employees. Each grade will have a control point which is used for budgetary purposes. All management and confidential positions will be assigned an appropriate pay grade based on salary survey data and internal relationships. All positions assigned to a pay grade will receive compensation which is no less than 25% below the control point and no more than 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 competitive marketplace studies will be made of 10-15 agencies similar to Palo Alto in number of employees, population and services provided. These studies will focus on general salary trends for groups of management positions such as first line supervisors, administrative, confidential, professional and top management. Periodically, studies will more specifically include position-by-position comparisons using marketplace and internal relationship data. Depending on the results of these studies, the entire pay grade structure may be adjusted or individual positions may be reassigned to different pay grades. Such adjustments will only affect the salary administration framework. No individual salaries will be automatically changed because of structural adjustments. 1 Fixed and Variable Compensation. Management compensation includes fixed bi-weeklysalary ~ 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 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 Adiustment Authorization. Each year the City Manager will propose for Council approval a compensation adjustment authorization incorporating the requests of each Council- appointed officer which will include amounts sufficient to implement base pay increases and Variable Management Compensation. The compensation adjustment authorization will be based on the following factors: competitive market, changes in internal position relationships, and the City’s ability to pay. Performance Planninq and Appraisal. Performance planning and appraisal will be conducted at least annually by the Council-appointed officers and department heads prior to reviewing individual employee fixed and variable compensation. This process includes both review of previous performance plan and preparation of the performance plan for the next planning period (usually the fiscal year). Performance plans are jointly prepared by the employee and supervisor with the concurrence of the department head or Council-appointed officer. The performance plans shall contain measurable objectives which place special emphasis on position description duties or specific assignments. Progress toward meeting objectives shall be monitored periodically. At the conclusion of the fiscal year (or review period), supervisors shall make a final determination of general performance and performance plan achievement. Such determinations and recommendations shall be forwarded to department heads or council-appointed officers who will then determine individual fixed and variable compensation adjustments according to the provisions of the compensation plan. C.Manaqement and Confidential Compensation Adjustment Authorization Council-appointed officers are authorized to pay salaries in accordance with this plan to non-Council-appointed management and confidential employees in an amount not to exceed the aggregate of approved management and confidential positions budgeted at the control points indicated in the attached Tables for fiscal year . In addition, for fiscal year ~, Council-appointed officers in aggregate are authorized up to 3% of the management and confidential salary and benefit budget for the fiscal year, plus unused Variable Management Compensation funds from the previous fiscal year to apply toward Variable Management Compensation for individual management and confidential employees who qualify under the provisions of this Management and Confidential Compensation Plan. Individual management and confidential fixed and variable compensation authorized by a Council-appointed officer under the Management and Confidential Compensation Plan may not be less than 25% below nor more than 20% above the control point for the individual position grades authorized in Table I of this plan. o The Council-appointed officers are authorized to establish such administrative rules as are necessary to implement the Management and Confidential Salary Plan subject to the limitations of the approved compensation adjustment authorization and the approved grade and control point structure. In the event a downward adjustment of a position grade assignment indicates a reduction in the established salary of an individual employee, the Council-appointed officer may, if circumstances warrant, continue the salary for such employee in an amount in excess of the revised grade limit for a reasonable period of time. Such interim salary rates shall be defined as "Y-rates." SECTION I1. SPECIAL COMPENSATION This section applies to all eligible regular management and confidential positions except as otherwise indicated. Eligibility shall be in conformance with the Merit Rules and Regulations and Administrative Directives issued by the City Manager for the purposes of clarification and interpretation. A. Overtime, Working Out of Classification, In-Lieu Holiday Pay Compensation for overtime work, and scheduled work on paid holidays for certain designated non-exempt employees shall be in conformance with the Merit Rules and Regulations and Policies and Procedures. Overtime eligible employees shall be paid at the rate of time and one- half times the employees’ basic hourly salary unless called out for an emergency arising out of situations involving real or potential loss of service, property or personal danger, in which case additional pay will be at the rate of two times the employees’ basic hourly salary. Where management employees, on a temporary basis, are assigned to perform all significant duties of a higher classification, the City Manager may authorize payment within the range of the higher classification. B. Stand-by Pay Employees eligible for overtime may be entitled to stand-by pay, approved by the City Manager on a case by case basis, in extreme circumstances involving unavailability of non-management staff. Compensation is as follows: Monday through Friday Saturday, Sunday, Holidays $40 per day $58 per day 3 C. Ni.qht Shift Premium Night shift differential shall be paid at the rate of 5% to regular full-time employees who are regularly assigned to shift work between 6:00 p.m. and 8:00 a.m. Night shift premium will not be paid for overtime hours worked or to Fire personnel assigned to shift duty. D. Uniform Purchase Plan - Sworn Police and Fire Personnel Uniforms including cleaning will be provided with replacement provisions on an as-needed basis in conformance with department policy. Group Insurance 1. Health Plan The City shall pay all premium payments on behalf of employees and dependents who are eligible for the employee-selected Public Employees’ Medical and Hospital Care Act (PEMHCA) optional plan. a) Retiree Medical Provisions 1)Monthly City-paid premium contributions for a retiree-selected PEMHCA optional plan will be made as provided under the Public Employees’ Medical and Hospital Care Act. b) Active Employee Domestic Partners 1)Effective July 1, 1996, active employee domestic partners who meet the requirements of the City of Palo Alto Declaration of Domestic Partnership, and are registered with the Human Resources Department, will be eligible for reimbursement of the actual monthly premium cost of an individual health plan, not to exceed the average ’~ monthly premium cost of individual coverage under the PEMHCA health plans. Evidence of premium payment will be required with request for reimbursement, 2. Dental Plan a)The City shall pay covered plan charges on behalf of all eligible employees and dependents. The maximum benefits per calendar year shall be $2,000. In addition, the City will provide 50% of "usual, customary and reasonable" charges up to $1500 lifetime maximum for orthodontic benefits. b)Effective July 1, 1996, dependents will include domestic partners, as defined under Section E. 1. b). 3. Basic Life Insurance The City shall provide a basic group term life insurance with Accidental Death and Dismemberment (AD&D) coverage, in an amount equal to the employee’s annual basic compensation (rounded to the next highest $1,000) at no-cost to the employee. AD&D pays an additional amount equal to the employee’s annual basic compensation (rounded to the next highest $1,000). 4. Supplemental Life And AD&D Insurance An employee may, at his/her cost, purchase additional life insurance and additional AD&D coverage. The total amount of life insurance available to the employee is $325,000 and the ¯ total amount of AD&D coverage available is $325,000. 5. Long Term Disability Insurance a)The City shall provide, at no cost to employees, long term disability (LTD) insurance with a benefit of 2/3 monthly salary, up to a benefit cap of $6,000. This covers employees whose monthly salary is $9,000 or less. For employees whose monthly salary exceeds $9,000, the employee shall pay.the cost of coverage above $9,000. b)For employees whose monthly salary exceeds $9,000 and who have no eligible dependents covered under the City’s medical, dental or vision plans, the City will pay up to $17.50 per month towards the employee’s cost for LTD coverage. 6.Vision Care a)The City shall provide vision care coverage for employee and dependents. Coverage is equivalent to the $20 deductible Vision Services Plan A. b)Effective July 1, 1996, dependents will include eligible domestic partners, as defined under Section E. 1. b). Safety Differentials 1. Police Department- Personnel Development Proqram Pursuant to administrative rules governing eligibility and qualification, the following may be granted to sworn police personnel: 5 EMT Differential:2,5% above base salary Mana.qement Benefit Proqram All City staff management and confidential employees are eligible for Sections 1,2, 3, 4 and 5 of the Management Benefit Program. City Council Members are eligible for Section 3a only. Specified amounts under this program will be applied on a pro rata basis for employees who are part time or in a management or confidential pay status for less than the full fiscal year. 1.Professional Development- Reimbursement Reimbursement for authorized self-improvement activities may be granted each management employee up to a maximum of $1,500 per fiscal year. The following items are eligible for reimbursement: a.Civic and professional association memberships b.Conference.participation and travel expenses 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 hardware, internet access, telecommunication equipment and home office equipment/furniture. Reimbursement of any of these expenses is taxable to the employee. 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. 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 !east ..two-years’ service fo!!owing retur.n 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 internship exchanges, and/or loaned executive arrangements; scholastic and/or authorship programs; or educational travel-study plans. Leave of absence schedules will be apportioned among all levels of management and confidential employees and will be based on an evaluation of each employee’s performance record. Each paid sabbatical leave will be limited to a maximum of one year and not more than two employees being on leave simultaneously. Sabbatical leaves must be cleared in advance and approved by a Council-appointed officer for his/her subordinates. Professional Development Leaves granted in excess of 30 days shall be noticed to the Council. 3. Physical Examinations All management and confidential employees are eligible to receive periodic physical examinations in accordance with administrative procedures. 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 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. b.Excess medical/dental/vision or expenses for employee and dependents which are not covered or reimbursed by existing City-sponsored plans. c.Excess professional development items which are otherwise approved, to the extent they are not paid or reimbursed under an;, other p!an of the Cib/. 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 8 the recipient under the applicable income tax laws, as they may be in effect from time to time. 5.Management Annual Leave At the beginning of each fiscal year regular management and confidential employees will be credited with 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. When time off is taken under this provision, 10-hour shift workers will receive one shift off for each 8 hours charged; 24-hour shift workers will receive one- half shift off for each 8 hours charged. Entitlement under this provision will be reduced on a prorated basis for pa~-t!me status, or accordi.n.~ to the nL~mber of mo.n.ths i.n. paid status during the fiscal year. Unused balances as of the end of the fiscal yearwill be paid in cash unless a different option as indicated above is elected by the employee. Automobile Expense Allowance For those employees whose duties require exclusive use of a City automobile, the City Manager (or in the case of Council-appointed officers, the City Council) may authorize payment of $325 per month in lieu thereof. Commute Incentives and Parkin,q 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: $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 vouchers may be used toward the purchase of a monthly transit pass. Carpool. The City will provide carpool vouchers worth the value of $30 per month to each eligible employee in a carpool with two or more licensed drivers. These vouchers may be used a designated service stations toward the purchase of fuel and other vehicle-related expenses. Vanpool Pilot Program. The City will provide Commuter Checks worth the value up to $60 to each employee voluntarily participating in the Vanpool Pilot Program. These Employeesvouchers may be used toward payment of the monthly cost of the vanpool. must fulfill the basic requirements of the Employee Commute Alternatives Program to qualify. Bicycle. The City will provide bicycle vouchers worth the value of $20 per month to eligible employees who ride a bicycle to work. These vouchers may be used at designated bicycle shops for related bicycle equipment and expenses. Walk. The City will provide walker vouchers worth the value of $20 per month to eligible employees who walk to work. These vouchers may be used at designated stores for expenses related to walking such as footwear and related accessories. Expense Allowance Per Pay Period Per Month (Approx.) Mayor $92.31 $200.00 Vice Mayor $23.08 $50.00 K.REIMBURSEMENT FOR RELOCATION EXPENSE Policy Statement The City of Palo Alto will provide a Basic Relocation Benefits Package for all new management employees. In addition, upon the approval of the City Manager or designated subordinate, Relocation Benefits will be available to non-management positions. Provisions of "Optional Benefits" or portions thereof, are intended only for rare instances and require the approval of the City Manager or designee, or for Council-appointed officers, the City Council. Procedure Qualifications In order to qualify for relocation benefits, the following conditions must be met: 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. 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. Provision of Additional Relocation 10 Benefits for Council-Appointed Officers, Assistant City Manager and Department Heads is contingent upon completion of a minimum of five years’ City employment. Failure to complete the minimum term will require repayment of those benefits on a pro-rata basis computed on the actual time of City service. Acceptance of relocation benefits by an employee does not constitute a commitment by the City to any minimum term of employment. Basic Package Professional Relocation Counseling - An agency designated by the City will provide relocation information and counselling to the employee. Information to be provided includes items such as a personalized cost-of-living analysis, home and rental locations, transportation, weather patterns, schools, recreation, etc. o 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. 3.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 11 Co "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. o Temporary Living Expense " Up to thirty (30) days’ temporary living expenses will be available under the following guidelines: a. Lodging - 100 percent of actual and reasonable costs for all family members. Do 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. 4.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 $5,500 on a Palo Alto area rental accommodation. Additional Relocation Benefits for Council-Appointed Officers, Assistant City Manager and Department Heads As part of an employment offer, additional relocation benefits may be authorized by the City Council for Council-appointed officers or the City Manager, Assistant City Manager or department heads. If consideration for additional benefits is requested by a final candidate, the City will provide the candidate through an agency designated by the City, a pre-hire relocation assistance analysis. This analysis will include: An assessment of the value of the home in the existing location and an estimate of the proceeds that the candidate will realize from the sale, an analysis and recommendations of the new home purchase or rental, loan assistance options and their cost to the City, and area counseling as provided for in Item 4. of the Basic Package. Once this analysis is complete, the appointing authority will design a relocation assistance package based upon the individual’s needs and 12 circumstances, and the recommendations from the Pre-Hire Analysis. The program may consist of any of the elements from the Basic Package and/or the Optional Benefits as well as those described below. All direct City loans are subject to City Council authorization. Marketing Manaqement Program - If mutually agreed upon by both parties, the new CAO/Assistant City Manager/department head may work with an agency designated by the City to market his/her home in the old location through a "Marketing Management Program". The purpose of this program is to provide the City and the new official with a realistic projection of the funds that will be available for housing in the new location and to expedite the sale of the house in the old location. Direct City Loans - The City may extend mortgage loans to new CAO/Assistant City Manager/department heads as part of a relocation assistance package. The two loan options are: Adjustable Rate Mortgage - This loan may be secured by a first or second deed of trust and may be fully amortized or for interest only. The interest rate will be set at 1/4 percent above the City’s earning rate on its investment portfolio and will be adjusted annually. The term of the loan will be set by the City Council for a period not to exceed 15 years, but will be due and payable within six months of termination of employment for whatever reason. Shared Appreciation Loan - This loan may be secured by a first or second deed of trust and may be fully amortized or for interest only. The interest rate is set at five (5) percent. Additionally, the CAO/Assistant City Manager/department head is required to pay deferred interest equal to a portion of the future appreciation. That portion is determined by the proportion of the original City loan to the original house price. For example, if the City provided a loan amounting to 40 percent of the value of the home purchased, the. employee would be required to pay 40 percent of net appreciation, if any, as deferred interest on the loan (net appreciation means appreciation after selling costs are deducted from sales price). The term of the loan will be set by the City Council for a period not to exceed 15 years, but will be due and payable within six months of termination of employment for whatever reason. Location of Property - To qualify for a Direct City Loan, the home being purchased must be located within a twenty-mile radius of the Civic Center, excluding property west of Skyline Boulevard (Highway 35). Loan Limits - Direct City Loans cannot exceed four times the annual salary of the lendee/employee. Short Term Interest Buy-Down - The City may pay a portion of the interest for the first three years on a loan obtained by the CAO/Assistant City Manager/department head from a commercial lender. The City’s portion of this "buy-down" is greatest in the first year and declines by 50 percent the second andthird year with the lendee paying the full interest rate on the loan beginning with the fourth year. The "buy-down" for the first year will be 2 percent, unless otherwise determined by City Council. 13 "points"Additional Purchase Costs - For CAO/Assistant City Manager/department heads only, ,~ on the purchase of a new residence are eligible for inclusion in this program. Rental Subsidy If it is determined that by choice, or for whatever reason, the new CAO/Assistant City Manager/department head will be a long-term renter, the City may provide rental subsidies up to a maximum of $500/month for 48 months. Regulations and Guidelines 1.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. ........-TJqis-wilL-include-the-dete~mination-of-whethe~ direct-City-payments~-ad-vance-ef-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. 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 Counselling may be provided before an employee formally accepts an offer of employment with the City. Retirement The City shall pay the mandatory seven percent (7%) employee Public Employees’ Retirement System (PERS) contribution. Such employer paid contributions shall be paid by the City in lieu of employee contributions notwithstanding the fact that such employer payment of contributions may be designated as employee contributions for purposes of PERS. This provision shall apply to Council-appointed officers and all regular management and confidential employees, except that for sworn police and fire management employees the City shall pay the mandatory nine percent (9%)of the employee’s PERS contribution. Notwithstanding subsection 1. above, upon filing a notice of retirement, the 7% City-paid PERS contribution (9% for sworn police and fire management personnel) will be converted o to a salary adjUstment of equal amount on a one-time irrevocable basis for the final twelve months immediately prior to retirement. Employee PERS contributions shall be made on a tax deferred basis, in accordance with Section 414(h)(2) of the Internal Revenue Code. All provisions of this subsection are subject to and conditioned upon compliance with IRS regulations. Effective 1-1-99, the City will provide benefits under the Public Employees’ Retirement System 2% at age 55 formula . M. Sick Leave Conversion Management employees hired on or before December 1, 1983 who have 15 or more years of continuous service, 600 or more hours of accumulated unused sick leave and otherwise qualify under Sections 604 and 609 of the Merit System Rules and Regulations, may convert sick leave hours in excess of 600 to cash or deferred compensation, according to the formula set forth in Section 609. The maximum amount of such conversion is $2,000 per fiscal year. N. Meal Allowance Management employees assigned to attend night meetings are eligible to receive reimbursement for actual expenses up to the dinner rate limit established in Policy and Procedures 1-2 for out- of-town meetings. This provision covers only receipted meals actually taken. O. Vacation Vacation will be accrued when an employee is in pay status and will be credited on a bi-weekly basis. Such accrual and credit may not exceed three times the annual rate of accrual. Each eligible employee shall accrue vacation at the following rate for continuous service performed in pay status: (a) Less than feu~ :n~ne years. For employees completing less than f-eu~ £].~#~ years continuous service: 1’^"~ ~..~,~,,4o .....,=~.~vacation leave per year;. provided that~ (i) and The City manager is authorized to adjust the annual vacation accrual of employees hired on or after July 1 2001, to provide up to +’^," (i.e., to a maximum annual accrual of 160 hours) for service with a prior employer. (c) (d) Nine, but less than fourteen years. For employees completing nine, but not more than fourteen years continuous service; 160 hours vacation per year. Fourteen, but less than nineteen years. For employees completing fourteen, but not more than nineteen years continuous service; 180 hours vacation leave per year. Nineteen or more years. For employees completing nineteen or more years continuous service; 200 hours vacation leave per year. P. Employee Referral Proqram Effective March, 8, 1999 and subject to administrative policies and procedures, the Employee Referral Program provides cash award in the amount of $1500 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. An initial award of ($750) will be given to the referring employee when a referral candidate is hired. 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. This is an 18-month trial program. Q. 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." 16 Oz ~0 ~..~-- o ~u (~r~ RESOLUTION NO. RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO ADOPTING A COMPENSATION PLAN FOR HOURLY PERSONNEL AND RESCINDING RESOLUTION NO. 8001 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 hourly personnel effective retroactive to the pay period including July i, 2001. 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 preparation of forthcoming payrolls. He is further authorized to make changes in the titles of employee classifications identified in the Table of Authorized Personnel contained in the 2001-2002 budget if such titles have been changed in the Compensation Plan. SECTION 5.Resolution No. 8001 is hereby rescinded. // // // // // // O11002 C! 8120239 1 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: Assistant City Attorney City Manager Director of Human Resources Director of Administrative Services O11002 cl 8120239 2 CITY OF PALO ALTO COMPENSATION PLAN Hourly Employees Effective:Pay period including July 1, ~2 ,~2through June 30, 200 Exhibit "A" COMPENSATION PLAN FOR THE CITY OF PALO ALTO Hourly Employees SECTION I. DEFINITIONS Hourly Employee: An employee working full time or part time on a temporary basis, or an employee workinga limited number of hours on an ongoing basis. SECTION II. SALARY AND CLASSIFICATIONS It is the intent of the City of Palo Alto to compensate hourly employees at a rate ¯ of pay similar to that of regular employees performing like work. Hourly employees are to be hired within the classifications framework, as presented in the attached pay plan, that is closest to a corresponding regular classification in both level of work performed and rate of pay. Should an hourly employee be required to take on added duties above the level of those originally required when first hired, the employee is to be reclassified into a new classification and pay rate which most adequately corresponds to the new duties. Conversely, if the employee is required to perform at a substantially lower level, the employee is to be reclassified into a corresponding lower level classification at a lower level of pay. SECTION II1. SPECIAL COMPENSATION A. Holiday Pay Hourly employees are eligible to receive holiday pay only if hours worked during the ~ay period when the holida~ occurs eaeh-) total 80 or more hours. Paid Leaves Hourly employees are not eligible for any paid leaves. Overtime Pay Unless designated by the Director of Human Resources as exempt from the provisions of the Fair Labor Standards Act, hourly employees are eligible for overtime premium pay at time and one-half when required to work more than a standard 40 hour week (for example: 8 hours/five day week; 9 hours/four andone-half day week or other pre-determined and pre-approved work schedule) or on an official City holiday. SECTION IV. TERM OF EMPLOYMENT A. Limited Hourly Classifications The maximum employment term for hourly employees classified in limited hourly classifications shall be less than 1000 hours during any fiscal year. B.PERS Exempt Hourly Classifications The maximum employment term for hourly employees classified in PERS exempt hourly classifications shall be the term of the assignment not to exceed five consecutive years. SECTION V. REVIEW AND SALARY INCREASES A. Performance Reviews Hourly employees, with the exception of the Recreation Department classifications, are to be given a performance review after 350 hours, or six months, whichever occurs first, from date of hire and annually thereafter. Continued improvement and efficient and effective service will warrant a salary step increase. Recreation Specialist will be eligible for consideration for a pay increase upon completion of a minimum of 300 hours of work and a satisfactory performance evaluation completed by the employee’s supervisor. Subsequent salary reviews are generally conducted annually; salary increases are not granted automatically and will depend upon demonstrated satisfactory job performance. Starting Salary and Increment Approval. All starting levels and increments must be approved by the Director of Recreation and Open Space. B.Salary Increases The salary increase is based upon a review and evaluation of the employee’s job performance. The employee must receive at least a satisfactory rating in order to be considered for a salary increase. 2~The maximum number of salary increases an hourly employee may receive in any one twelve-month working periods is limited to two (2), regardless of total number of hours accumulated. C.Exceptional Leadership Ability and Job Performance Upon written justification and departmental and Human Resources Department approval, an individual who demonstrates EXCEPTIONAL leadership ability and job performance may be given a merit raise before meetin,q time requirements, if he/she displays outstanding job performance. SECTION VI. LIMITED HOURLY CLASSIFICATIONS ADMINISTRATIVE, PROFESSIONAL AND MANAGERIAL Management Specialist May perform work associated or equal in complexity with responsible City managerial or staff positions. Compensation to be determined according to tasks assigned and qualifications required. Professional I Performs work at the level normally associated with that of consultants, instructors, and research personnel where a specialized skill or expert knowledge is required. Professional II Performs work in an assignment requiring specialized knowledge in professional field of endeavor. This level normally requires a college education with some experience but not at the level expected for the Professional I classification. Administrative Assistant I Performs analytical studies or undertakes a variety of projects whereby previous work experience is required. Normally requires a college education and experience in the field for which the individual is to be utilized. Administrative Assistant II Performs work in an assignment normally associated with that of college student or graduate with a minimum of work experience. Generally an entry level position. Coordinator Aide CLERICAL Clerk I Performs work in support of program or facility operations. Entry level or training position with no previous experie.nce required. Performs general office work which includes tasks that require use independent judgment. May coordinate activities, work with public, write and type basic reports. Requires experience in administrative/clerical areas. Clerk II Performs office work of a routine nature. May type from drafts, file, greet the public, answer telephones.Requires little prior office experience. Library Aide Under supervision, performs related library duties of a simple nature. Requires no previous experience. (Usually high school students.) MAINTENANCE AND CRAFTS Skilled Laborer Performs maintenance tasks that usually require use of automated and/or technical equipment. Requires prior training and experience in area assigned and valid California driver’s license. Laborer I Performs laboring maintenance typically in parks or streets. May direct work of other employees. Requires prior maintenance experience, knowledge of power equipment and valid California driver’s license. Laborer I1 Performs routine maintenance utilizing hand tools. Requires the physical ability to perform tasks utilizingdexterity. Laborer ill Position for individual who has had some exposure to outdoor maintenance. Duties are of routine nature. Individual works closely with an assigned person(s) to gain skill. Requires some prior experience. TECHNICAL Technician I Includes such work as performed by advanced draftspersons and apprentice electricians. Classification may also be used for individuals involved in conducting surveys, opinion polls, and other data collection assignments where analysis of data may be required. Technician II Performs less advanced technical work than that of the Technician I class. Normally requires some specialized skills such as drafting, electronics, building maintenance, crafts, etc. Technical Assistant I Performs entry level technical skills requiring the ability to master the use of specialized tools and techniques. Technical Assistant il A trainee position to gain experience and exposure in the technical function normally associated with Social Services and the Arts. RECREATION Recreation Specialist Recreation Trainee Individuals involved in a department training program. Recreation Specialist I Individuals with less than 500 hours of recreation leadership experience. Recreation Specialist II Individuals with more than 500 hours of leadership experience. Recreation Specialist III Individuals with 1000 hours leadership experience who organize and/or instruct class- type programs. Aquatics Specialist Life.q uard/Instructor Individuals with up to two years of experience supervising swimming activities. Aquatics Specialist Under supervision performs various aquatics programming activities. Requires two years of experience. Aquatics Facility Manager DEFINITIONS Leadership Manages various aquatic programs and facilities. Defined as work experience in a paid or voluntary capacity, in which an individual is directly responsible for planning, organizing, teaching, leading, or conducting recreational activities in a face-to-face relationship. Non-Leadership POLICE RESERVES Police Reserve I Defined as facility attendant (i.e., parks, fields, gyms), facility maintenance, office work, cashier (exception, Rincondada Pool). Reserve officer who has received requisite level of training to operate in a solo capacity. Police Reserve II Reserve officer who must be accompanied by a regular sworn officer or a Police Reserve l in performance of duties. SECTION VII. PERS EXEMPT HOURLY CLASSIFICATIONS ADMINISTRATIVE, PROFESSIONAL AND MANAGERIAL Proiect Manaqer: Manages contractors, consultants and activities related to capital improvement, grant-funded or other projects of a special projects of specified time duration typically requiring prior experience in the project area. Proiect Professional: Performs work in an assignment of specified time duration requiring specialized skill or expert knowledge in a professional field of endeavor. Normally requires a college education with some work experience. CLERICAL Proiect Assistant: Performs general office work in support of capital improvement, grant-funded .or other projects of specified time duration. Normally requires experience in administrative/clerical areas. Library Pa.qe: Shelves books and performs other related library duties of simple nature. Requires no previous experience. TECHNICAL, MAINTENANCE AND CRAFTS Project Technician: Performs technical work on capital improvement, grant- funded or other projects of specified time duration. Requires specialized skill or knowledge in the area assigned. Project Laborer: Performs maintenance of construction work on improvement, grant-funded or other projects of specified time duration. requires prior experience in area of assignment. capital Usually Landscape Maintenance Trainee: Assists in the maintenance of public parks and golf course. Requires no previous or related experience. RECREATION Recreation Leader: Organizes and/or instructs class-type recreation programs. Requires various levels of experience in planning, organizing, teaching, leading or conducting recreational activities. Pool Manager: Assists in developing and organizing swimming programs or plans and coordinate swimming programs requiring prior experience in area of assignment. Water Safety Instructor/Lifeguard: Supervises swimming activities. Requires previous experience in supervising swimming activities.