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HomeMy WebLinkAbout0233.095• 1 City of Palo Alto City l\1anager's Report TO: HONORABLE CITY COUNCIL I'ROM: CITY MANAGER DEPARTMENT: num •• Re." ...... AGENDA DATE: May 1,1995 CMR!l13:gs SUBJECT: Approval or Amendrue"t to Compeasation Plan rar M .... gem."! ud CCII6delllial Employees REQUEST This reqoes! is Jix app!"""al of an amendment to Section 0. Management &nefit Program. of !be Compensation Plan Jix Man.gemen! and C<>nfidentiaJ Employees. RECOMMENDATIONS Staff rewtIlIIleDds Cooncil &ptirovaJ of !he attached compensation plan amending section G, Management Benefit Program, 1.<. and 4 .•. fQI lex IMlUCATJQNS The amendments add. as • reimbmseable expense under the existing Management Ilenefit Program. computer software which is related to academic or vocational CGUtSes and 1IlI'.guage changes necessary 10 bring the Benefits Program into compliance v.ilh I.R.S. guidelines. EXECUTIVE Sl1MMARY At the time Cooncil appr","~ the 1994-95 Compensation Plan fOe Management "-'!d Coofi<!ential employees (CMR:406:94), you were advised tl1a! a.t'ler staffwork was completed. additional amendments woold be !ortbeoming related 10 mO<ftficatioos in !be Professional o.welopment Program. Amendments include the addition of romputer software related 10 aeademic or vocational rourses as • reimhll1".eablc expense IlIlder Section G. I. c, and technkallanguage cbanges in Section G. 4. c, related 10 1.R.5. regulations. The full text of the Compensation Plan is attached with cbanges indicated. CMll:233:9:S I'2gelofl . -. ,. , ., . . ' . " .. ' . "".- "-' ,. "SC&J·IMPACI There is !lO cost impact 10 1his change. Funds o:e included as pill1 of management benefits in the 1994-95 budget. ENYJR01\7dEloTAL ASSgSSME1'(l This is no( • "project' 10< purposes of tl!c California Envitonm<:ntal Quality Act. ~TIAQJMll"'S RcsoIutioo Ameoding the Compensatioo Plan for Managomem and Confidential Personnel and COUllcil Appointed Officers. Compensation I PREP ARID BY: Susan Rye""", Mana.PlXof Employee Relations. & DEPARlMENT HEAD REVIEW: ! .. Ct ( /~-,k,:=.._,-____ _ IA'l,-ROl.iNDS . Icc of Human ]{"'~tes Paje":Z of 2 RESOLUTION NO.==-"",= I!ESOLUTION OF THE COONerL OF T"rlE CITY 01' PALO ALTO AMENDDIG THE COMPENSATION PLAN FOR I'Il\NAGlDo!EN"l' "-'lD CONPIllIDITIAL PERSONNEL M'D COUNCIL APPOINTED OFFICERS AOOP'I'W BY RESourrION NO. 1351 TO AMEND THE M1\NAGSMRNT BENEFIT PI1OGRA!o{ The Council ot the City of Palo AltO does RESOLVE as f 0 11 """ : SRCTIQN 1. PUrsuant to the provisioo9 of Section 12 of Article III of the Charter of the City of Palo Alto, the Compensation Plan for Managem~nt and Confidential personnel and Council Appointed Officers, adopted pursuant to Resolution No. 73S1. is hereby amended as Bho~ in Exhibit RA·. attacbed hereto and inoor-~rated herein by reference. SHeTTO" 2. The Director of Finance is authorized to implement the amended Compensation Plan benefits as set forth in Sectioo 1. ,C::ECTIOII 4.. TIle Cou~,cil finds that t.his ls not a project under the Cal1fo-rtlia Snviroomen·tal Qua.lity Act. and, therefore, no envir~-Dtal impact assessment is necessary. IIITROVOClID AND P1--SSED: AYES: IIOBS: Al!SEN'i': ABSTEN'l'IONS : ATTEST: APPROVED: City Clerk Mayor City Minager Senior Asst~ City Attorney Director C·f Finance Director of Human ~es~~rces CI1"l OF PALO ALTO COMPENSATION FLAN Management and c~fidential Personnel and Cooncil...ApoointeE-s EFFECTIVE: pay period including July l~ 1994 through June 30. 1995 AMENDED: May 1, 1995 I ! I , "",,", ',.-0 .~. .:.:;.; . -'" ; ... COMPENSATIOIf PLAN FOR THE CITY OF FALO ALTO H'anage.me.nt and Coofid",mtial Persormel SECTION I. COMPENQ,TION t'his section applies to all regular management and confidential posit.Ions. except council .Membors and Council-appointed officers. Notwithstandift9 this exception l the council may authorize Variable Management Compensation tor Council-appointed officers. Each Council-appointed office~ shall be the responsible decision-maker under this Plan for those employees in departments under his/her control. A~ Management and confidential Comoensation pclicy The City's policy for management and confidential compe,nsation is to establish and maintain a general structure based on marketplace norms and internal job aligr~ent with broad cocpensation grades and ranges. Structures and ranqes "Will be revie.red af1.1'l,ually and updated as necess~ry based on marketplace s.urvey data., internal relationships., and City financial conditions. Individual compensation adjustments will be considered by the Cooncil­ appointed officer based on (l) perfonr:ance factors including achievement of predetermined objectives; (2) pay stru-cture adjustments; and {3} City financial conditions. 9. Basic Plan Elements Structure. The compensation plan includes separate-multi-grade structures Cor _both management and confidential employees. Each qrade will have a control point which is used fo~ budgetary purposes. All management and cOnfidential positiGns will be assigned an appropriate pay grade based on salary survey data and internal relationships. All positions assigned to a pay qrade will receive compensati<:ln which is no less than 25\ belov the control point ar4 no more than 15\ above the control point~ Actual salary within the range is deter~ined by performance. The normal worki nq range within which most actual salaries will fall will be within ± 5\ of the ~ontrol 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 a3 first line supervisors..­ administrative... co.'1.fidential.. professional and top manaqement~ Periodically. studies vill more specifically include position-by­ position comparisons using marketplace and internal relationship data~ Depending on the results of these 5 tU<1:ies., the entire pay grade structure may be adjusted or individual positions may be reassigned to different pay qra,des. Such adjustments ..,111 only affect the salary adainistration frameyo,rk. No individual salaries ..... 111 be automaticall:f changed because of structural adjustments. ~ and Variable Compensation. Management compensation includes fixed bi-weekly sallllry and Variable Management cOIDpe;}sation fVHC). Fixed bi-weekly salary is paid on a ccntinuing basis. Variable COMPENSATION PLAN KAlfAG EKDfl ANt> CONFIDEllTIAL PERSONNEL ANt> COUNCIL-AP?OINTEES Page 2 ."" Management Compensation is a one-time cash award in an amount not to exceed 15' of the position control point. On a fiscal year basiS I the sum c~ both eomp~nsation comporoents must fall within pay qrade limits of .no less than 25' below the C-Ontrol point and no more than 1S\ above the control point. Fixed salary increases may be earned in accordance with administrative guidelines based on qrowth .ithin the positIon and performance which »eets or exceeds position standards. In additlon l ~mployees may earn Variable .Management CompensatIon bY' meetinq o-r exceeding objectives e.stablisbed under the annual performance planning aoo appraisal system. Variable Management Compensation requalitication is necessary for eacb appraisal period~ compensa:tio.."'1. Adjustment Author ization. Each year the. City Manager will propose. for Council approval a compensation adjustment authorization incorporating the requests of each Council-appointed officer which .. ill inclode a!ll.ounts suffici£:ot to implement base pay increases and Variable Management. .compensation. The compensation adjustment authorization .. ill be based on the following factors: COIr.petitive !rIarket .. changes in internal position relationships4 and the City's ability to pay. PerfoX1pance Planning and Appraisal. Pertonnance plalUlinq ~nd appraisal will be conducted at least an....~ually by the Council-appointed office_rs and department heads p~ior to reviewing individual employee fixed and variable compensation. This proc~ss includes both review of previ~~s 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 hea~ or Council-appointed officer. The performance pl~ns snaIl contain measurable objectives vbich place spe~ial emphaSis on position -description duties or specific assigrments. Progress toward meeting objectives shall be monitored periodically.. At the conclusion of the fiscal year (or review periodj .. supervisors shall make a final 4etermination of general performance and performance plan achievement. Such determinations and recommendations shall be forvardei to ~epartEent heads or council-appointed officers wbo will then detena.ine individual fixed and variable compensation adjustlt.ents according to the p~ovisions of the oom~nsation plan. c. Management and Confidential Compensation Adjustmant Authorization 1. Council-appointed officers are (!uthoriz·ed to pay salaries in accordance with t.~is plan to non-council-appointed management and confidential employees in an amount not to exceed the aggregate of app:roved management and confidential positions budgeted at the control points indicated in the attached Tables for fiscal l'-ear 199'-95. In addition. fer fi~cal year 1994-95. Council-appointed officers in aggregate are auth-ori.zed up to 3% of the management a_nd co-nfi0:3ential salary and benefi.t budget for" the fiscal yecu·, plus unused Variable Man~geillent Compensati.on fu.."'lds froD! the previous . . --, ~!NSATIOH FL~ MAHAGDlEN'l' AND CONFIDENTIAL PERSONNEL AND COUNCIL-APPOINTEES Paq" 3 ','" fiscal year to apply to~ard Variable Manaqement Compensation for indIvidual management and confidential employees who qualify under the provisions of this Manaqement and Confidential COlTope.nsation Plan .. 2. Individual Il.anac;ement and confidential fixed and v3riable C¢mpensation authorized by a C~il-appointed ofticer under the Manaqement and Confidential compensation Plan may not be less than 25' below nor more than 15% above the control point for the individual position grades authori~ed in Table I of this plan. 3.. Tbe council-appointed officers are authoriz.ed t.-o establish su.ch administrative rules ~s ~re necessary to implement the Management and Confide':-ltial Salary Plan subject to the limitations of the approved compensation adjustment authorization and the approved qrade and control point st~~ture~ 4. In the event ~ downward adjustment of a position qrade ~ssignment indicates a reduction in the established salary of an individual employee, the Council-appointed officer may ~ if circwr,stances warrant.l" continue tlle salary tor such el!1ployee in an amount in excess of t.he revised grade limit for a reasonable period of t.ilne. SUch interi~ salary rates shall be defined as ~Y-rates.·, SE£l'ION II. SPECIAL CO!"..PENSATION This section applies to all eligible regular management and ~fidential positions except as otherwise indicated. Eligibility shall be in conforllance with the Merit Rules and Regulations and Administrative Oirectives issued by the City Manager for the purposes of clarification and int:erpretation~ A. Annual Adjustment Ann~ally, each empl~yee who holds a regular full-time appointment in the Ilunicipal service on or before J"lJ.ly first and continues in such status thr~~r~t the first day of Pay Period 25 (in December) shall receive, in addi~ion to the salary prescribed herein, a salary adjustment equal to one percent of the employee's current ar..nual salary; or at the employee's option and subject to management approval, 24 houcs :yaid leave to be used prior to the January 31 following. ~..nual adjustments shall be p-rorated to reflect appointment tr~ January 1 through July of toe current year, or interrupted service c.urin9 the year. 8. Overt.ime.&. Working out -of Classifjcat.ion, and In-Lieu HoliJ:tay Pay compensation tor overtime ~o~kl and scheduled ~ork on paid holidays, shall be in conformance with the Merit Rules and Regulations and Administrative Directives. Where management employees, on a temporary basis, are assigned to perfo·rm all significant duties of a higher f • COMPEl'SATIOIl PL!IN lIAlfAGEKENT AlII> CON FID EI/'l'I AL PERSONNEL AlII> ~'NCIL-APPOIIITEES hge C classification. the City ~anager may authorize payment within the range of the h19ber classification. Ca Hight Shift premium Night shift differer.tial shall be paid at the rate_~f S' to regular full-ti ... e E"IIlployees "00 are regularly assigned to shltt work between -6::0G p ••. and 8:00 a.lII.. Night. shift premium. will not be paid fo"'C ov<et:tlze 'hours worked or to Fire pers-jllflel assigned t.o shift duty. 0.. gnifqrm pyr¢haae plan -S~~~n Police and Fire PersonnEl OnifOCES including cleaning will ~e provided .ith replacement provisions on an as-needed basis in conforlllariC& with depa.rtment policy .. E.. Group Insurance 1.. Health_ Plan The City shall pay all pl.~e'!D.iu1ll pa}'lr!ents on bebalf of employees and ~ependents lrIho are e.ligible for the employee-select.ed Public Smployees' Medical and Hospital Ca~e Act (PEMHCA) optIonal plan. a} Retiree Medical Provisions 1) Monthly City-paid premiuJG. contributions for a retlre:e­ selected PEMHCA optional plan will be made as provided under the Public Employees ' Medical and Hospital Care Act~ 2.. Dental Plan The city shall pay covered plan charges on be~alf of all eliqible employees~ and dependents. The :maxi:m.um benefits per calendar year shall be $2,0·00. In addition, the City .... ill provide 50\ of ·usuosl., customary and reasonable-charges up to $1500 lifetime ~axi&um fer orthodontic bertefits. 3. Basic Life Insurance The City shall provide a basic life and AD , D insurance plan in an amou."1t eq"lal to the eDlployee's ann'.lal basic .compensation (rounded to the next highest $1,000). 4. I&nO fer-Dlsability Insura~ '!'he (:ity shall provIde long term disability insurance with a benefit of 2J3 JnOnthly salary to a :maximum of '$6.00'0. P-remiwas for salar1as bet ... e~n ct $6.,0.00 and $9.,"000-per ltonth are paid 'b1'-tbe employes. ':.---. ". COKPENSA'I'ION PLAN lIANAGEMENT AN!) CONFIDENTIAL PERSC'Nl<EL AND CO\lNCIL-APPOINTEES Page 5 5.. futon CaTe The City shall provide 'Vision care coverage for employee and dependents.. Cove~age is equivalent to the $20 deductible Vision Services Plan A. F~ Pgllce pepartment -P?rsQDD~l Cevelopment Program PUrsuant to admi~istrative rules qoverning eliqibility and qualification, the following may b~ qranted to s~orn police persor~l: P,O.S.~. Intermediate Certificate: 5% above base salary P.O. S4T .. Adv:an....--ed Certificate: 7 1/2% above base salary G. Hanageme~t Benefit Pr~ All City staff ~anagement and confidential employees are eligible f~r Sections 16 2 .. 3, 4. and 5 of the Management Benefit Program. city Council Members are eligible fer Section 3a only~ specified amounts under this progralll will be .!IIpplied -on a p'ro rata basis for employees who are part time or in a ~anagement or-confidential pay status for less tha,n the full fiscal year4 1. Professional Development --Reimburse~ent Reimbursement: for i!S\.ltoorized self-improvement activities may be .grant.ed eacb management employe.e \.lp to a maximum of '$5.QO per fiscal year, ·except that unused reImbursement .allo ...... ance may be carried forarard freD. the p-reviO"-.ls fiscal year to a maximull allovan<::e (current. and carr)'over} of '$1 .. 00'0 per fiscal year.. The following items as -defir.ed in policy and Proced·l.1res No.. 2-7 are eligible for reilIlOOrSe!:DeTlt: a4 Civic and p~ofessional association mamberships b4 Conference participation and travel expenses c. Educational programs/tuition r-eimbursement. The education Zlust maintain ~r improve the employee's skills in performing his or ber j·ob", or .be necessary to me-e.t the express requirements of the City or the requirements of applicable law~ The educaticn to which the rebtbl-lrsement relates must not be part of a program qualifying the employees for another trade or business; or be necessary to Meet the llinimum. educational requirements to·r qualification fo.r employment. Permissible: ed~ational expenses are -refresher courses, courses deal~_~ '. 'Wi~1:l_ c.urre_Ilt, ~~_~~e .. J ?i:~~,Il~_~l,., _~p_~,d,~,~,~.~,,~.,_,_.? .. f., ,y.~a tiona 1 courses ~ ~~e~,~~~.:,~-t~,~,~,~-! r~ :~t~::t;t:Q;.;::::'i{!liJ~·CA :,,,,<@~l;'seS";":!'<as W'ell as the travel expenses asso°c·I a"ted·"··witJ11·'"'~:fie ,.ocours es ~ " ' 'S.: -.~------ , "-:: ""!:~, • , -:". - ,.:~. '; • ~KPENSATIOII PLAM K1l1lAGI!HfJIT AND CONFIDENTIA!-PERSO)INEL AND COUNCIL-APPOINTEES l'a'1" , d. Professional and trade jourr.al sUb$crip,tlons e. Physician-prescribed personal healt.h program as indicated under lb of 'this section. 2. Professional peyelopme~t Leave Authorized paid IE-aves cf abse:-:ee for up to one ye2Lr will be qranted in accordanc~ with the following requirem~nts: a. Eliqibility is subject to a !Bini:m.um -City service requirement of flve years. b. c~pensation during the Professional Development Leave shall not exceed 5o, salary and full benefits. c. When 9'I'"anted a Professional Development Leave shall require a.n employee commitment of at least two-years' service following return .from tbe Leave. To the ex:tent the full two-year commitment is not fulfilled r the e~ployee shall re-pay the City a pr~ rata amount of t~e salary paid during the Leave based on the percentage of the t"'o-yaar -commitment not fulfilled. 4. The Professional Development Leave program shall z:elate to ~'"1e employee's jGb assignment. e. An e!frPloleeta job assignment activity sball be adequately covered durinq hisJher abse:n-ce with emphasis on the development. of SUbordinates. f. Th.e leave of absence period shall be adeg,uately coordinated with ~epartme~tal p~iorities and workload. 9.. Pro!es~i~al oevelopment Leaves sball be based on int.ernship exchanges.. andJor loaned executive arr-ange:t!\ents; scholastic and/or authorship programs;: -or educational travel-study plaIi.;:;~ Leaye. .of absence schedules vill be apport.ioned among all levels of sanag'9lUent and confidential employees and will be based on an evaluation of e.a.ch employeets performance record.. Ea.ch paid sabbatical leave will be limited to a: maximum of one year and not more than two employees beinq on leave simultaneously. sabbatical leaves must be cle.ared in advance and approved by a Council­ appointed officer for )I. is/her subo,rdinates.. Pl:ofessiona1 Development L.eaves 9'ranted in e;;cceS5 of 30 days shall be not-iced to the Council. 3. f..ersonal Health i'ro;ram -Physical Fitness a.. All ~anaqement and confidential employees vil1 receive physical ~xaminat!ons in accordance with Folicy and Procedures No. 2-1. COMPENSATION PLAN lIAJ{AG EXENT ANt> CONFI Oil'lTIAL F ERSO!<!<EL AN!) COOllCIL-AWOUITEES \>age 7 b~ subject to Ir.terna} Revenue service regulations and with the written prescript_ion of a medica.l doctor I an employee may be reimbursed for a personal health program as treatment for a diaqnosed injury ~r illness~ This activity will bs reimbursed under G.l(e) above. c. Excess Benefit Reh(bursement ReImbursement for approved e~~ess benefi~ expenses will be qrantea up to a maxiJ3Ul1. of $1.85·0 per fiscal yaar each .for 3'lanaqe-:raent ar.d confidential employee.s and sball incl-c.de the follo-wing benefit item::;: a. Life insurance premiums fer City-sponsored plans, subject to federal and state tax limitationSa b. Excess medical/dental expenses .for employee and dependents which are not. covered Ll}r existing City-sponsored plans~ d. Dependent ca:t"e expenses according to the follO",;finq -general provisions: 1) The annual amoun-t submitted fo'!:' reimoorsel!lent cannot exceed the income of the lower-paid spouse. 2} The expenses must be employment-related expenses for the care ot one or more deper~ents who ara under 13 years of age and entitled to a dependent deduction under Intarnal Revenue CQde section 151(e) or a dependent ~ho is physically cr ~ental1y incapaDle of caring for himself or herself. 3) The paYMents cannot be made to a child under 19 years of ~ge or to a person claimed as a dependertt~ 4j If' the services are provided by a dependent care center .. the center must comply yith all state and local laws and must p!""-ovide care fol'" more than six individuals {other than a resident of the facility,. 5] Dependent care e>'''Penses not submitted under this section are eligible ~nde~ the City Dependent Care Assistance Plan (DCAP).. Bowaver. the ma::dIiluIl amount reimbursed u.'1der DeAF vill be reduced by any amount reimbYrsed under the EXcess Benefit Plali~ .-..... -'-. ~ f '-.' . .',_.,..--. ..,. .. "~--.' '.'" ." -.,.-;.: -.. co.'U'ENSATION PLAN lW<AGEMENT All!) COtiFIOEll'lIAL P=~"NEL AlII) COUNCIL-APPOINTEES Page a If the full excess ~nefit relmburse~~nt ls ~t used durinq the tiscel year, th~ difference ~t~een tbe amount used and the maxlzum (or pro rate maxi.am) may be applied at the employee's option to deferred compensa~ic~ under the City Planes). s~ ~nagement ApnuOI Leaye At t.he beqinnlnq of eacb fiscal year regul.:ar management and confidential employees will be credited 'With 40 oo..lrs of annual leave whicb lrIay be taken as paid time oft, added to vacatIon accrual (subject to vacation accrual limitations), taken as cash or taken as deferred compensation. When time off is tak~n under this provision... lO-hc,ur shIft 'Workers 'Will receive one shift off for each 8 hours charged; 24-t&ur shift ~orkers will receive one-half shift off for each B bours charged. Er.titlem¢nt under this prevision 'Will be reduced on a prol'"ated basis for part-time status, 'Or aocordirl9 to t.he number of months in paid stat.us during the fiscal year. Unuse~ balances as of the end of the fiscal year ~ill be paid in cash unless a different option as indicated above is alect:ed blo" the employee. 8. Automobile Expense Allowance Fo-r those. ell'lplo~'ees wbose dut.ies require. exclusive use of a City automobile ... the City Manag-er (or in the case of Council-appointed Qffieers ... the city council) may authorize. payment of $30<> per month in lieu thereof. I. Commute Incentives and Fark:i.J19 Employees -....-bo q.J.alify m'3!Y voluntarily elect one of the following COmF-ute ir~ntives: Civic:. Center parking'. E::lployees assigned to Civic Cent.er and adjacent vor"k locations.. The City 'Will provide aI Civic Center Garage parking permit. New employees hired after July 1, 1994 may initially receive a par-king permit tor another do\.'1ltown lo-t. subject to the availability of space at the Civic center Garage .. P'Qblio Transit.. 'i'he City ....-ill provide monthly Commuter Checks worth the vallle to '$20. These vouchers may be used towarQ the purchase Qf a monthly transit pass. . carpool. The city will flCovide carpool vouchers .... or-th the "~alue of $20 per month to each eligible employee in a carpool with two or Ilore people.. These Vouchers -may be used a designated service stations t.ovard tbe purchase of fuel and ether vehicle-related expe.nses. Bicycle. The City ~ill provide bicycl~ vou~h~rs worth the value of $2~ per month to eligible employees who ride a bicycle to work. COKPEllSATION PLAN ~GEI!ENT }'.ND CONFIDEII'l'IAr. PERSONNEL JollD COUNCIL-APPOINTEES paq.. 9 These vouchers ~ay be used at desi~n~ted bicycle $hops fo~ re1ated blcycl~ equipment a~ expenses . • alA:.. The city vi 11 pro'vide walker vouche.rs 'Wor-th the value ot $20 per »onth to eligible e~p~oyees who walk to ~ork. These vouchers may be used at ~esiqnated stores for expenses related to walking such as footwear and related accessories. :I.. Expense Allowance E.i:.r Pay Period Fer Month (A~ro¥.) Mayor-$69.23 $150".00 Vice Mayor $<6.15 $1~O. 00 le.. REIMBURSEl1EN'l FOR RELOCATION EXPR..'olSE Policy state.~errt The City of Palo Alt~ will provide a Basic Relocation Benefits Package for all neW" management. employees. In addition" upo., the approval of the city Manager or designated su~rdinate" Relocation Benefits will be available to_ non-manaqem~nt positions. Provisions of ·Optional 8ene~its· or portions thereof~ are intended only for rare instar~es and require t.he approval of the City Manager -o'r desiqnee, or for Council­ appointed officers, the city Council. procedure Qytlifications In o~der to qualify tor reloca~ion benefits~ the following coc4itions J:'!ust be :met.: 1. Actual relocation, or con-tracts designed to establis!1 a fixed domicile". shall occur within one year of the initial date of employment. 2.. Existing employees promoted to a covered position are not eligible. 3. Jtecord-keeping r-aquirements vill parallel those required for expense reimbursement for travel. conferences and meetings. 4. Provision of Opt-lepa} Be.oefits is contingent upon co!l':pletion of a ai.l'I.imUl1l of t\110 years' city employment unless a longer tent. is specified. P~ovision of Additi~~l Relocation Benefits for Council-Appointed Officers. Assistant City Manager and ~rtment ~ is contingent upon coIr'.pletior.. of a lRinimWl of five years' ,.­- '- .~ -. COMPENSATIOIf FUll I!ANAGEKENT A>lD roNFIOp<TIAL PEF.SONNEL lUID COUNCIL-APPOINTEES Page 10 City emplo:p"er.ta Failure to complete the lIIinim:J1JI term .. ill roaquire repayment of those benefits on it pro-rata basis co'mputed on t.he actual t.lJCe of City service.. Acceptance of relocation bet'lefits by a~ eDployee does not ~,stitute a commitment by the City to ~y .inimua term of employment. BasiC Package 1. ~g$ional Relocation Counsel i iug -An agency desIgnated by the City will provide re.location information and counsellinq to the employee. Information t~ be ~cvided includes items such as a personalized cost-of-living analysis~ home and rental locations, transpc..rtati.p.n .. 'Weatller patterns .. sc-l'l-ools .. re.creation.,. etCa 2. En Route Expenses -Direct common carrier transportatio~ will be prcvided in full fer all family membe~~~ A~tomobile expenses are limited to two v~~lcles at the established City rate with a minimum of 3$0 miles per day to be traveleda Per diem is allowed at established city rates :for e~loyee and spouse/mate and at 50 percent of the employee rate for oependents~ Travel days al1o~ed are limited to th~ actual mileage divided by 350 miles per day. Lodginq: is reimbursed in full on an actual and reasonable basis :for all family members. 1. Household Goods Shipment -Full costs will be paid for the shipment of all personal items normally cons idered -Household Goods~· Items elColuded inc1.ude recreational vehicles... firewood,. building: Ilaterials z sand.,. beats" airplane:s-" and perishable items SL~b as food or plants. Shipment of up to t'Wo automobiles is permitted. storage of house~old goods 'Will be pr9vided for 30 days. ~9Dal ~neftt3. 1. sale and Purchase Costs -The city .. ill reimburse costs that arise in the sale and/or purchase ,cf r-esidences including! a. Real estate commissions on the sale of the former residence up to six (5) percent of the sales price~ b. The employee.'s portion of non-recurring closing 003-ts on both sale and purch~se of residences limited to the follcwinq: Title Insurance Policy and Escrow Fees Loan and Assu;c.ption Fees Private Mortgage Insurance City and county Transfer Taxes Tax Service, Notary and Recording Fees Credit and Appraisal Reports Property Survey Fees Inspection Fees " '".,. -.',,) " "--.. ---: "" '"-;'" ::~-:',.-<~ ~" '-~ " :.. -"'-'-'" , .':-. -.~""" . " COMPENSATION PLAN P\.\HAGEMEHT AND CONFIDENTIAL PERSONNEL AND COUNCIL-APPOUITEES p&g-e 11 c. ·Points· on pu~cbase of residence are specifically excluded. 2. Mi scellane9ll§ Em~ ---The city viiI l'eim.burse miscel1a..~eous expenses associated with the relocation. The amour.t s.hall not exceed $2,000. ~. Temporary" LiVing Expense -Up to thirty (30) days' temporary li~inq expenses vil~ be available under the fcllovinq guidelines! a. Lodging -100 percent of actual and reasonable costs for all :ramily members. b~ Per Oiem -t~ percent of the Established City rates for employee and spouse/mate ... and 50 percent of the ~stablished city rate for dependents fer the first 15 days; 50 percent of the ~stabli$bed city rate for employee and spouseJmate, and 2, percent of the established City rate Cor dependents over the last lS d:ajs~ c. Car Renta~ -Up to 3Q days for a singl~ vehicle is available until such time as the employee's perso-nal vehicl.e becomes a ... ·ailable. ~. Rouse Hun~~Expense -The City ~ill reimburse expenses for one house h,unting trip for J:.oth employe.e and ... spousE:/mate~ The t.rlp shall be limited to a maximum of seven days~ Travel expense~ ar~ lImited to the lesser of common carrier rates or the established City 'rate fer automobile use. Lodgir~ is provided on an actual and re3sonable basis. Per dien expenses are allo~ed ~ccording to the established City rates. Expenses for children are not covered. 5. Expenses for R_enters The City may reimburse the follo-.. ir.g E:xpenses fer empl::>yees J:',oving from or into rental housing: a. Costs arising froa the need to break an existing lease up to a total payment ~f three times the current monthly rental rate. b. The first and last month's rent to a ~aximum of $3,500 on a Palo Alto area rental aooommodation. Additional Relocation Benefits for C9Uncil-~RRQinted Officers~ssistant ~ity Manager and Department Heads .t.a part. of an emplo:flllent offer... additional relocat.ion ~nefits :may be ~uthorized by the City council for Council-appointed officers or the city ~nager. Assistant City Manager or depart'l'.e.nt heads. If consideration fer ~'id1tlonal benefits is requested by a final candidate. tbe Cit.y will ~ro~ide the candidate through an agency designated by the City, a pre-hire r~location assistance analysis. This analysis viIi include: An assessment ~f the value of the home in the existing location and an estimate of the pcoceeds that the candidate will realiZe from the sale. an analysis and . ,--.."..~----.-. -:-' CO!!PENSATIOK PLAN MANAGEMENT AND COKFIDI'JI'TIAL PERSONNEL ANO·OOUNCIL-APPOINTEES page 12 r.commendations of the new home purchase or rental, loan ass!stan~e options and their cost to the City, and area counseling as provided for in Item 4. ot the Sasic package.. Once this analysis is C'omplet.4!', the appointing authority vl11 design a relocation assistance pack.age, based upon the individual •• needs and circumstance.s~ and the recotr.lDer.dation~ froll the Pre­ Hire Analysis.. The pr-ogra~ may consist of any of the elements from the Basic Pack.a.ge andJor the Optional Senefits as -well as those described below.. All direct city loans are subject to City Council authorization .. L 'Marketing Management Proo.[All -If mutually agreed upon by bot.h pa-rttes, the new CAO[Assistant city Manager/departme.nt head may 'Work with an agency desiqnat.ed by the City to lrIarket his/her home in the old location t.hrougb a "Marketing Management Program".. The purpose of this program is to provide the city and the new official vith a realistic projection of the funds that will be available for h~sinq in the new location and to expedite the sale o! the house in the old location. 2. ~ct City loans The City E'iay extend mortgage loans to ne-,., CAO/Assistant. City Manager/department beads as part of a relocation assistance pacKage. The two loan cptiorls are: a. A4justab18 Rate Xortqaqe -This loan may be secured by a first cr second deed of trust and may be fully amortized or ror interest only. "rhe interest rate ~ill be set at 114 percent above the City's earning rate -on its investment portfolio and .il1 be adjusted ar.nually. The term of the loan .il1 ~ 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 vhatever reason. b. Shared Appreciation Loa. -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. AdditicnallYI the CAOJAssistant City Manager/department head is req~ired ~o pay deferred int,erest equal to a pC-rticn of t...he future. appr-eciatic-."'1. 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 va1ue of the home purchased, the employee would be required to pay 40 percent. of" net appreciation# if any. as dE'.ferred interest on t.he loan (net appreciation means appreciation after selling costs are deducted from sales price). ~he term of the 10an will be set by the city council for a period not to exceed 15 years, cut will be due and payable .. i thin sil( months of terminatic.n of employment -Cor .. hat.ever reason. Locat!oA of ~roperty -To qualify for a Direct City Loan. the home beiD9 purchased must be located ~ithin a t~enty-mile radius of the Civic Center-... excllJding F~opertjl west of Slcyline BoUleYard {Higbway :lS) • . " .. . - COKPENSA'lION PLAN MANAGEMENT AN!) <.'ONFIDENTIAL PERSOID<EL AND COUNCIL-APPOINTEES "''Ie 13 Loaa Lialt. -Direct City Loans cannot exceed fouc times the annual salary of tne lendee/employee. ).. Short: 'term Int~rgst Blly-noyn -Thp City may pay a portion of the interest tor the first three years on a loan obtained by the CAO/Assistant city Manager/depart~ent bead from a commercial lender .. The City1s portion Clf this "buy-~· is qreatest in the first year and declines by 5¢ percent the second an~ third year with the lendee paying the full inte~est rate on the loan beginning ~ith the fourth year. The -buy-down-fo-r the first year will be 2 percent" unless othervlse deterained by city council~ f. Additional F1J.rchaq;e Costs -For CAO/Assistant City Managerl department beads only~ ·points· on th~ purchase of a ne~ residenc~ are eligible tor inclusion in tbis program. 5~ Rental subsidy -If it is determined that by choice# or for whatever r£ason , the new CAOIAssistant City Managerl department head will be a lonq-term renter, the City may provide rental subsidies up to a maximum Qf $$OO/month fo~ 48 months. Regulations and Guidelines l~ Tbe City Hanaqer~ or designated su~rdinate, will institute and revise internal procedures to assure the effici.ent deliver)" of services to the new employee and n.in·!'!!!ize costs to the City. Tbis 'Will include the determination of whether direct City paYlZlents, advance of funds o·r employee reimbursement is ~ost approp~iate for a qiven program element or employee .. 2 . The City Manager. or desiqnate~ subordinate, will determine the • appropriateness of inclusion of spc~ific items for reimbu~sement under this prograiB. 3. Expenses incurred by the employee during relocaticn which are rwt covered are: a. Payments to friends for assistance. b. AutomObile repairs. c. Costs incurred d,uring the rele>eation but no·t directly related to personal t.ranSiportatiO-n or forwarding of hcusehold :belongings,. i.e. uninsured lossE's d,uring transit#, entertairunerJt expenses., etc • .c ~ B-udqet.inq.of all relocation expenses .ill ::"ICcur in the HU:man Resources and Utilities Departments. S. Upon approval .of the city Kanaqar., prOV1$10!1 of benefits under the section H~~se Hunting Expenses and Professional Relocation Counseliing .. '::';'" .. '-" • c-':. .-...... _ .~ .-.... :--:- .....:.. ':) , ,.-•• " 0 " < COl'IP EIISAnOlf PLAN HANAGEMEMT ANO CONFIO~TIAL PERSONNEL AND ~CI~-APpOINTEES page 14 lCey be provided before an employee formally acce.pts an offer o.f ellploiment. with t.he City .. L. Re1:;iremen,t 1~ 'rhe City sha.ll pay the-. mandat.ory seven percent (.1\) em.ployee Public EMployees' Re-tirement System (PERS) contribution. SUch employer paid ~tributions shall be paid by the city in lieu of employee contributions not~ithstandinq the fact ~~t such employer payment of contributions !'lay be designated as employee contributions for purposes of PERS. This provision sh~ll apply to Council-appointed office.rs and all reqular manaqement and cOnfidential employees.. except that for sworn police and fire ~anagement employees the city shall pay the mandatory nine percent (9\) of the e~ployee's PERS contribution. 2.. Notwithstanding subsection 1.. above., upon filing a notice of l"et:1rement. ... the 7\: City-paid PERS contribution (9% for sworn police and fire. managemel'lt personnel) will be converted to a salary a~justment of equal a&ount on a one-ti~e irrevocable basis for the. final twelve months immediately prior to retirement .. provided that all of the follo~inq conditions are met: a. The employee must have at l~ast 20 years of PERS member service credit as of the date of retirement; as an alternative employees hired prior to Auqust 15, 1988... may -q'.lalify by attaining th~ ag~ of SS at the date ~f retirement or attaining the PERS benefit fac~or of at least 75ia b. Twelve i!lo-nths prior to retirement the employee must give n-otice to the City for a retirement date certain. c~ DurIng the 12-:month conversion period .. the ell",ployee shall pay PERS empl.oye~ contributi.ons. provis!o-ns will be implemented as soon as possible to allow for these contributions to be made on a ta~-deferred basis. d. All provisions of this subsection are subject to and conditioned upon compliance with IRS regulations. 3. In order to continue after June 30, 199.... the provisions of paragraph 2 above# as soon as possible, the City will contract with PERS to provide -Reportin9 the Value of Employer-paid Kember Contributions as Compensatio..'1 in Employees' Final Compensation Period by Contract Amendment {Government Code section 20615.S}.- ~. Sick Leave Cc.nversion Kanagement employees hired on or before DeceJnl:>.<:,r 1# 1983 .... ho have 15 or more years of continuous. service., 600 or l!'IOre hours of accumulated un~sed sIck leave and otherwise qualify under Sections 6Q( and 609 ¢f -"-_ .. COMF&NS~TtON PLAN MANAGEMENT AND CONFIDFN~IAL PERSONNEL ~ OOUNCIL-~INTEES poq" 15 the Xe.rit syat,ell Rule.s and. ~egu1.at.ions, -may convert sick leave hours in exce5~ -of 600 to cash or -o:eferred coli\.~nsatlon... accordinq to the formula sat forth in section 609. The JI'IaXimilll. a'l'.OUnt of such conversion ia $2,000 per fiscal year. )t.. hal AllOWilll<"..e Management employees assigned tQ attend night ~eetings are eligible to receive rej,JDbursement for actual e.:.cpenses up to. the. dinner rate li.it established in P.olicy and Procedures 1-2 fer out--of-town meetinqs .. This provision covers only receipted ~eals actually taken ..