Loading...
HomeMy WebLinkAbout12-04-2018 Item 9 - Adjustments to supplemental salary schedule and Policy as a result of minimum wage increasesDepartment Name: Human Resources Cost Center: Multiple For Agenda of: December 4, 2018 Placement: Consent Estimated Time: N/A FROM: Monica Irons, Human Resources Director Prepared By: Brittani Roltgen, Human Resources Analyst SUBJECT: ADJUSTMENTS TO SUPPLEMENTAL SALARY SCHEDULE AND POLICY AS A RESULT OF MINIMUM WAGE INCREASES RECOMMENDATION 1.Adopt a resolution modifying the Supplemental Employee Salary Schedule as necessary to comply with California Fair Wage Act of 2016 requiring a minimum w age of $12.00 per hour effective January 1, 2019 (Attachment A & Exhibit A); and 2.Adopt the revised Supplemental Employee Policy (Exhibit A). DISCUSSION Background A qualified supplemental, or temporary, work force is instrumental to the City of San Luis Obispo’s ability to provide consistent services to the community by adjusting more easily and quickly to workload fluctuations, unexpected vacancies, leaves of absence, or demands resulting from limited-term projects, seasonal, or peak periods. A supplemental work force also provides programs that would otherwise be difficult to staff due to the intermittent, seasonal, or non- traditional work hours (e.g. early mornings, weekends, evenings, etc.). For example, the City’s Parks and Recreation Department emp loys over 200 supplemental, part -time (less than 30 hours per week on average) employees at any given time. While many of these employees are seasonal (working only 3-5 months), they sustain programs and services important to the community; providing befo re and after school care, summer children’s camps, ensuring pool safety, special events, senior programs, and maintenance of the golf course and open space. Supplemental employees are used throughout all City departments and in some cases, the City has experienced increasing difficulty recruiting and retaining qualified candidates. Supplemental positions that require certifications or State licenses such as childcare teachers and lifeguards have been particularly challenging during the past few years, causing staff to take interim actions to ensure the continuance of these programs. These interim actions have included reassigning full-time staff temporarily to cover supplemental staff shifts and starting supplemental employees with certifications or licenses at higher than normal steps in the salary range. Salary Schedule Reflects Legally Mandated Minimum Wage Increase For the past two years, as minimum wage has increased as provided in the California Fair Wage Act of 2016, the City’s response has been to eliminate supplemental salary ranges or steps within Packet Pg. 69 Item 9 ranges that are below minimum wage. The effect of this approach is that employees with less experience or qualifications, earn the same as employees who have greater experience with the City. This creates a condition referred to as “compaction” which describes a lack of differentiation between more and less seasoned or experienced employees. That, combined with the fact that many of the supplemental positions at the City not only require certific ations, but also come with a level of responsibility (e.g. caring for a child’s safety and well-being, rescuing a swimmer in distress, etc.) that other part -time or seasonal positions (e.g. retail clerks, hospitality, food servers, etc.) do not demand, is resulting in recruitment and retention challenges. Therefore, as staff analyzed and proposed necessary Supplemental Salary Range adjustments to comply with the January 1, 2019 minimum wage increase to $12 per hour, how to alleviate compaction, reduce turnover, encourage retention, and improve the City’s ability to recruit was considered. A change to the general structure of the Supplemental Salary Ranges is proposed. Instead of a 5 - step salary range with an increase of approximately 5% between steps, a 9 -step model is proposed, with an increase of approximately 2.5% between steps. This modification to the salary range is aimed at addressing the demographics of the City’s supplemental employees and the retention challenges. The City’s supplemental workfor ce tends to be college-age students whose alternative is less demanding part-time work that may include tips, holiday bonuses, or other fringe benefits such as discounts on products. The City cannot offer these types of incentives, however, the investment in training supplemental employees is substantial. The recommended approach is to provide recognition of continued quality performance through more frequent increases, albeit at a lower rate. In alignment with this change, the Supplemental Employee Policy is proposed to be modified to lower the hour threshold for a step increase from 1040 hours (the equivalent of “half-time) to 520 hours (the equivalent of “quarter time”) or upon completion of a “season” to encourage employees to return the following seaso n. This provides departments an opportunity to recognize their supplemental employees more frequently, thus encouraging good behavior, performance, and loyalty to the City, without significantly impacting their budget. The broader impact of the legally mandated increases in minimum wage on City salary ranges needs further analysis and staff believes a more comprehensive look at the supplemental wage market will help inform future proposals. The Human Resources and Parks and Recreation Departments plan to collaborate on this effort and propose further adjustments in anticipation of the January 2020 and 2021 minimum wage increases and in alignment with the 2019 -2021 Financial Plan. ENVIRONMENTAL REVIEW The California Environmental Quality Act does not app ly to the recommended action in this report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15278. Packet Pg. 70 Item 9 FISCAL IMPACT Budgeted: Partially Budget Year: 2018-19 Funding Identified: Yes Fiscal Analysis: Funding Sources Current FY Cost Annualized On-going Cost General Fund - Forecasted $49,000 $ 98,000 General Fund – Not Forecasted $18,000 $ 36,000 Total: $67,000 $134,000 Adoption of the Supplemental Employee Policy may result in a small fiscal impact as supplemental employees may be getting increases more frequently. However, departments will be managing these increases within their own budgets. The increase in minimum wage in January 2019 was anticipated, thus funds in the amount of $50,000 were set aside in the 2018 -19 budget. The fiscal impact of adjusting those employees currently earning less than the anticipated 2019 minimum wage is estimated to be $49,000 for fiscal year 2018-19. In addition, adjustments made to address recruitment and retention issues are estimated t o be $18,000 for the remainder of the fiscal year. These funds were not set aside in the 2018 -19 budget and will need to be reallocated from Ventures and Contingencies that has a balance to cover this unanticipated expenditure. The Parks and Recreation department will assess how to fund the full impact of these increases on an ongoing basis and will include this in the 2019-21 Financial Plan. ALTERNATIVES 1. Do not adopt the Supplemental Employee Policy and modified Supplemental Employee Salary Schedule. This is not advised as it would put the City in a position of being non- compliant with Federal law. 2. Do not adopt modifications to the Supplemental Employee Salary Schedule outside of legally mandated minimum wage increases. This is not recommended as it wo uld cause increased recruitment and retention issues for supplemental staff. Attachments: a - Resolution Supplemental Employee Salary Schedule - Final Packet Pg. 71 Item 9 R ______ RESOLUTION NO. (2018 Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, ESTABLISHING AND ADOPTING A SUPPLEMENTAL EMPLOYEE SALARY SCHEDULE AND SUPERSEDING PREVIOUS RESOLUTIONS IN CONFLICT WHEREAS, the City of San Luis Obispo have remained committed to providing high quality service to the community and recognize the City’s commitment to fiscal responsibility; and WHEREAS, the City understands a qualified supplemental work force is instrumental to its ability to provide consistent high-quality services and programs to the community; and WHEREAS, the California Fair Wages Act of 2016 requires periodic adjustments in the state minimum wage; and WHEREAS, the City Council has the exclusive authority to fix the salaries and compensation of local officials and employees pursuant San Luis Obispo Charter Section 711. NOW, THEREFORE, BE IT RESOLVED, that the Council of the City of San Luis Obispo hereby adopts the Supplemental Employee Salary Schedule and revised Supplemental Employee Policy as set forth in Exhibit A. The Director of Finance shall adjust the appropriate accounts to reflect the compensation changes effective December 27, 2018. All prior Resolutions are hereby superseded to the extent inconsistent herewith. Upon motion of _______________________, seconded by ___________________, and on the following vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this 4th day of December 2018. ___________________________________ Mayor Heidi Harmon ATTEST: __________________________________ Teresa Purrington City Clerk Packet Pg. 72 Item 9 Resolution No. _____ (2018 Series) Page 2 R ______ APPROVED AS TO FORM: __________________________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, this ______ day of ______________, 2018. ____________________________________ Teresa Purrington City Clerk Packet Pg. 73 Item 9 Supplemental Employee Salary ScheduleClassificationEEO CategoryEEO FunctionWC Code Class Schedule Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8 Step 9*Childcare Aide/Camp Counselor5 6 9410 9161 900 12.00$ 12.19$ 12.37$ 12.67$ 12.96$ 13.29$ 13.61$ 13.88$ 14.14$ *Rec Cashier5 6 8810 9171 900 12.00$ 12.19$ 12.37$ 12.67$ 12.96$ 13.29$ 13.61$ 13.88$ 14.14$ *Youth Sports Official5 6 9410 9261 900 12.00$ 12.19$ 12.37$ 12.67$ 12.96$ 13.29$ 13.61$ 13.88$ 14.14$ Facility Host5 6 9410 9162 900 12.00$ 12.19$ 12.37$ 12.67$ 12.96$ 13.29$ 13.61$ 13.88$ 14.14$ Intern I5 1 8810 9111 900 12.00$ 12.19$ 12.37$ 12.67$ 12.96$ 13.29$ 13.61$ 13.88$ 14.14$ *Lifeguard5 6 9410 9251 902 12.60$ 12.78$ 12.96$ 13.29$ 13.61$ 13.93$ 14.25$ 14.61$ 14.97$ Fire Intern3 5 9410 9151 902 12.60$ 12.78$ 12.96$ 13.29$ 13.61$ 13.93$ 14.25$ 14.61$ 14.97$ Hydrant Maintenance Worker3 5 9410 9191 902 12.60$ 12.78$ 12.96$ 13.29$ 13.61$ 13.93$ 14.25$ 14.61$ 14.97$ Intern II5 1 8810 9211 902 12.60$ 12.78$ 12.96$ 13.29$ 13.61$ 13.93$ 14.25$ 14.61$ 14.97$ Parking Booth Attendant8 2 9410 9271 902 12.60$ 12.78$ 12.96$ 13.29$ 13.61$ 13.93$ 14.25$ 14.61$ 14.97$ *Childcare Teacher5 6 9410 9262 904 13.00$ 13.31$ 13.61$ 13.93$ 14.25$ 14.61$ 14.97$ 15.33$ 15.68$ *Head Lifeguard5 6 9410 9351 904 13.00$ 13.31$ 13.61$ 13.93$ 14.25$ 14.61$ 14.97$ 15.33$ 15.68$ *Swim Instructor5 6 9410 9263 904 13.00$ 13.31$ 13.61$ 13.93$ 14.25$ 14.61$ 14.97$ 15.33$ 15.68$ Facilities Assistant 5 6 9410 9264 904 13.00$ 13.31$ 13.61$ 13.93$ 14.25$ 14.61$ 14.97$ 15.33$ 15.68$ Intern III5 1 9410 9311 904 13.00$ 13.31$ 13.61$ 13.93$ 14.25$ 14.61$ 14.97$ 15.33$ 15.68$ Ranger Services Worker8 6 9420 9181 904 13.00$ 13.31$ 13.61$ 13.93$ 14.25$ 14.61$ 14.97$ 15.33$ 15.68$ SNAP I3 4 9410 9152 904 13.00$ 13.31$ 13.61$ 13.93$ 14.25$ 14.61$ 14.97$ 15.33$ 15.68$ *Head Childcare Teacher5 6 9410 9361 906 14.00$ 14.13$ 14.25$ 14.61$ 14.97$ 15.33$ 15.68$ 16.07$ 16.46$ *Golf Maintenance Assistant8 6 9410 9291 908 14.25$ 14.61$ 14.97$ 15.33$ 15.68$ 16.07$ 16.46$ 16.78$ 17.10$ Administrative Aide I5 1 8810 9172 908 14.25$ 14.61$ 14.97$ 15.33$ 15.68$ 16.07$ 16.46$ 16.78$ 17.10$ Lead Parking Attendant8 2 9410 9471 908 14.25$ 14.61$ 14.97$ 15.33$ 15.68$ 16.07$ 16.46$ 16.78$ 17.10$ Parks Maintenance Aide I8 2 9420 9182 908 14.25$ 14.61$ 14.97$ 15.33$ 15.68$ 16.07$ 16.46$ 16.78$ 17.10$ Recording Secretary6 10 8810 9272 908 14.25$ 14.61$ 14.97$ 15.33$ 15.68$ 16.07$ 16.46$ 16.78$ 17.10$ SNAP II3 4 9410 9252 908 14.25$ 14.61$ 14.97$ 15.33$ 15.68$ 16.07$ 16.46$ 16.78$ 17.10$ Tree Climber Assistant8 2 9420 9192 908 14.25$ 14.61$ 14.97$ 15.33$ 15.68$ 16.07$ 16.46$ 16.78$ 17.10$ Water Quality Lab Aide3 13 9410 9141 908 14.25$ 14.61$ 14.97$ 15.33$ 15.68$ 16.07$ 16.46$ 16.78$ 17.10$ *Aquatics Specialist5 6 9410 9461 910 15.00$ 15.34$ 15.68$ 16.07$ 16.46$ 16.86$ 17.25$ 17.68$ 18.11$ Administrative Specialist5 6 8810 9472 910 15.00$ 15.34$ 15.68$ 16.07$ 16.46$ 16.86$ 17.25$ 17.68$ 18.11$ Community Services Specialist5 6 9410 9462 910 15.00$ 15.34$ 15.68$ 16.07$ 16.46$ 16.86$ 17.25$ 17.68$ 18.11$ Facilities Specialist5 6 9410 9463 910 15.00$ 15.34$ 15.68$ 16.07$ 16.46$ 16.86$ 17.25$ 17.68$ 18.11$ *Youth Services Specialist5 6 9410 9464 910 15.00$ 15.34$ 15.68$ 16.07$ 16.46$ 16.86$ 17.25$ 17.68$ 18.11$ Adult Sports Official5 6 9410 9265 912 15.68$ 16.07$ 16.46$ 16.86$ 17.25$ 17.68$ 18.11$ 18.46$ 18.81$ Facilities Aide - Farmer's Market8 2 9420 9292 912 15.68$ 16.07$ 16.46$ 16.86$ 17.25$ 17.68$ 18.11$ 18.46$ 18.81$ Facilities Aide - Pool8 6 9410 9293 912 15.68$ 16.07$ 16.46$ 16.86$ 17.25$ 17.68$ 18.11$ 18.46$ 18.81$ Police Operations Support Specialist3 4 8810 9212 912 15.68$ 16.07$ 16.46$ 16.86$ 17.25$ 17.68$ 18.11$ 18.46$ 18.81$ SNAP III 3 4 9410 9352 912 15.68$ 16.07$ 16.46$ 16.86$ 17.25$ 17.68$ 18.11$ 18.46$ 18.81$ *Ranger Services Specialist8 6 9410 9465 914 16.46$ 16.86$ 17.25$ 17.68$ 18.11$ 18.54$ 18.97$ 19.45$ 19.92$ *Special Swim Instructor (swim & classes) 5 6 9410 9362 916 17.25$ 17.68$ 18.11$ 18.54$ 18.97$ 19.45$ 19.92$ 20.40$ 20.87$ Administrative Aide II5 1 8810 9371 916 17.25$ 17.68$ 18.11$ 18.54$ 18.97$ 19.45$ 19.92$ 20.40$ 20.87$ Legal Assistant I5 1 8810 9131 916 17.25$ 17.68$ 18.11$ 18.54$ 18.97$ 19.45$ 19.92$ 20.40$ 20.87$ Parks Maintenance Aide II8 2 9420 9281 916 17.25$ 17.68$ 18.11$ 18.54$ 18.97$ 19.45$ 19.92$ 20.40$ 20.87$ Accounting Assistant3 1 8810 9132 918 18.11$ 18.46$ 18.81$ 19.37$ 19.92$ 20.40$ 20.87$ 21.39$ 21.91$ GIS Technician3 1 8810 9231 920 18.97$ 19.45$ 19.92$ 20.40$ 20.87$ 21.39$ 21.91$ 22.43$ 22.95$ IT Assistant/Help Desk 3 1 8810 9232 920 18.97$ 19.45$ 19.92$ 20.40$ 20.87$ 21.39$ 21.91$ 22.43$ 22.95$ Legal Assistant II5 1 8810 9233 920 18.97$ 19.45$ 19.92$ 20.40$ 20.87$ 21.39$ 21.91$ 22.43$ 22.95$ Parking Enforcement Officer3 2 9410 9266 920 18.97$ 19.45$ 19.92$ 20.40$ 20.87$ 21.39$ 21.91$ 22.43$ 22.95$ Landscape Inspector 3 2 9410 9282 924 20.87$ 21.39$ 21.91$ 22.43$ 22.95$ 23.53$ 24.10$ 24.57$ 25.04$ WasteWater Collection Operator7 13 9420 9283 924 20.87$ 21.39$ 21.91$ 22.43$ 22.95$ 23.53$ 24.10$ 24.57$ 25.04$ Fire Inspector3 5 9410 9253 932 25.25$ 25.88$ 26.51$ 27.15$ 27.78$ 28.47$ 29.16$ 29.73$ 30.30$ Urban Forest Inspector3 2 9410 9284 932 25.25$ 25.88$ 26.51$ 27.15$ 27.78$ 28.47$ 29.16$ 29.73$ 30.30$ KeyBlue = P&R Positions  * = Classifications that work with children (AB 218 doesn't apply)  Exhibit A1Packet Pg. 74Item 9 Supplemental Employee Salary ScheduleClassificationEEO CategoryEEO FunctionWC Code Class Schedule Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8 Step 9KeyBlue = P&R Positions  * = Classifications that work with children (AB 218 doesn't apply)  Utilities Services Technician (Senior)3 13 9420 9241 932 25.25$ 25.88$ 26.51$ 27.15$ 27.78$ 28.47$ 29.16$ 29.73$ 30.30$ Crime Analyst2 4 8810 9213 940 30.55$ 31.32$ 32.08$ 32.85$ 33.61$ 34.45$ 35.29$ 36.13$ 36.97$ Transportation Planner-Enginner I2 2 9410 9133 940 30.55$ 32.08$ 33.61$ 35.29$ 36.97$ Process Improvement Analyst2 1 8810 9214 944 33.61$ 34.45$ 35.29$ 36.13$ 36.97$ 37.90$ 38.82$ 39.58$ 40.33$ Senior Accountant2 1 8810 9331 944 33.61$ 35.29$ 36.97$ 38.82$ 40.33$ Engineering Consultant3 2 8810 9332 980 50.00$ 51.56$ 55.00$ 65.00$ 75.00$ Commissioner6 10 88109861 990 75.00$ Mutual Aid (GS 1-5) 2 5 9420 9153 993 13.04$ 14.20$ 16.00$ 17.98$ 20.10$ Mutual Aid (GS 6-10) 2 5 9420 9254 994 22.40$ 24.90$ 27.57$ 30.45$ 33.54$ Mutual Aid (GS 11-15) 2 5 9420 9353 995 36.84$ 44.16$ 52.51$ 62.05$ 72.99$ Hazardous Materials Team Business Manager3 5 8810 9651 996 28.00$ 29.00$ 30.00$ RETIRED ANNUITANTS:Parking Enforcement Officer (PERS Retiree)3 2 9410 9961 960 21.91$ 22.95$ 24.10$ 25.25$ 26.51$ IT Assistant (PERS Retiree)3 1 8810 9931 962 24.10$ 25.25$ 26.51$ 27.78$ 28.78$ Supervising Adminsitrative Assistant (PERS Retiree) 6 1 8810 9921 964 25.36$ 26.51$ 27.78$ 29.16$ 31.13$ Temp Senior Civil Engineer (PERS Retiree) 2 2 9410 9932 966 39.33$ 42.93$ 44.53$ 46.76$ 49.13$ Exhibit A2Packet Pg. 75Item 9 Supplemental Employee Policy GENERAL POLICY It is the policy of the City of San Luis Obispo to hire supplemental employees to meet temporary needs of the City that result from emergencies, special projects of a short- term nature, extra-help, seasonal work, un-programmed surges in workload, occasional hours for an ongoing need, and to provide substitutes for or support to regular employees to maintain optimal service levels. Supplemental Employees shall be compensated on an hourly basis, supervised by regular City staff (exceptions may be made in the Parks and Recreation Department) and perform specific tasks as defined by the City. Authorization for all supplemental employee hiring except in the Parks and Recreation Department shall be approved in advance by both the department head or designee and the Department of Human Resources via an HR Requisition Form. Compensation for supplemental employees is to be in alignment with the City’s supplemental salary schedule. ADMINISTRATION OF SUPPLEMENTAL EMPLOYEE POLICY The Department of Human Resources shall be responsible for coordinating the recruitment and selection of supplemental employees and administering the City’s Supplemental Employee Policy. The Parks and Recreation Department shall be responsible for coordinating their department’s recruitment and selection of supplemental employees in accordance with this policy. Department heads and their supervisory personnel are responsible for implementing the Supplemental Employee Staff Policy in their respective departments. POSITION ANALYSIS Seasonal Worker: Hired to work on a part or full-time basis during a season to respond to an increase in demand. Occasional: Hired to fill a temporary need over a specific period, such as backfilling a Full Time Equivalent (FTE) that is out on leave/vacation/worker’s comp, or to help with a special project. Hired as needed to accommodate periods of increased workloads. Irregular Schedule: Hired to respond to an increase in demand for a position that is not an FTE. Number of hours worked in a fiscal year vary. Exhibit A 3 Packet Pg. 76 Item 9 Supplemental Employee Policy Revised November 20187 Page 2 of 11 Limited Benefit Employee: Some Parks and Recreation supplemental employees are eligible for time off benefits. These employees receive paid time off in the amount of 3% hours worked, up to a maximum accrual of 40 hours. Supplemental Employees Hired part-time to supplement the City’s regular workforce in a position that does not have an associated line-item position. Contract Employee: These positions are for periods of employment typically greater than six months but less than two years. Contract employees may receive some of the same benefits as regular employees in the bargaining group their classification is within if it is expressly written in to their employment contract. Other contract employees may have other negotiated benefits that differ from a bargaining unit. Heath insurance (medical, dental, vision, life) is an optional benefit for contract employees, offered at the department’s discretion. City contribution is aligned with equivalent employee group benefits. TEMPORARY HIRING OF RETIREES • Temporary full-time or temporary part-time employment of retirees under the California Public Employees Retirement System (PERS) shall be permitted in cases where temporary service is desired. • The PERS retiree is limited to 960 hours per fiscal year. These hours include periods of time worked for any PERS agency in the State of California. Under no circumstances shall a PERS Retiree work for any PERS agency for more than a total of 960 hours per fiscal year or be assigned to the City through a temporary agency. Other limitations may apply, including the amount of compensation that may be offered. Refer to CalPERS Employment After Retirement Handbook for further information. Retired Annuitant: An employee that has retired from a CalPERS agency that meets the criteria to work for less than 960 hours in a fiscal year. These criteria include: • Hired to be used as extra-help • Has specialized skills needed to perform the work • Their retirement date must be 180 days before their hire date Benefits Supplemental Employee Health Contribution: Supplemental employees working shifts greater than 30 hours per week or 130 hours per month on a continuous basis for at least four months will be eligible for employee-only health insurance. The contribution is adjusted annually to ensure affordability as defined by the Affordable Care Act (ACA). Nationwide Retirement: The City of San Luis Obispo does not participate in Social Security but has implemented a retirement system which satisfies the IRS and the Social Security Act [20 CFR 1200(b)]. This shall be accomplished by the use of a Exhibit A 4 Packet Pg. 77 Item 9 Supplemental Employee Policy Revised November 20187 Page 3 of 11 Deferred Compensation Plan eligible under section 457(b) of the Code. All employees of the City of San Luis Obispo who are not eligible to participate in the Public Employees Retirement System (CalPERS) must participate in this defined contribution plan. Employee contribution is 7.5% of salary. CalPERS Retirement: Supplemental employees who have previously been enrolled in CalPERS or exceed 1,000 paid hours in a fiscal year will be enrolled into CalPERS (paid hours include regular, sick leave, overtime). *For more information, please refer to Exhibit A Paid Sick Leave: In compliance with California Law Assembly Bill 1522 – Healthy Workplaces, Healthy Families Act of 2014 (AB 1522), effective July 1, 2015 the City will provide all supplemental staff (with the exception of retired annuitants) paid sick leave at the accrual rate of one (1) hour of sick leave for every 30 hours worked, up to three (3) days or 24 hours of paid sick leave to be provided in a 12-month period. More details can be found in the City’s Paid Sick Leave Policy. Personal Time-off (PTO): Parks and Recreation Limited Benefit (LBT) employees are pre-approved positions that work over 1,000 hours per fiscal year and are eligible for personal time off (PTO) benefits. These employees receive PTO in the amount of 3% of hours worked, up to a maximum accrual of 40 hours which is cashed out upon termination. PTO does not count towards hours worked for purposes of overtime calculation. RESPONSIBILITY FOR SUPPLEMENTAL RECRUITMENT & SELECTION The Department of Human Resources shall be responsible for the application of the Supplemental Employee Policy. From time to time the Human Resources Director and City Manager may be required to make amendments to this policy to comply with federal and state laws. HUMAN RESOURCES DEPARTMENT It shall be the responsibility of the Department of Human Resources to assist all department heads and their staff in the recruitment and selection of all supplemental staff and contract employees (except for Parks and Recreation) which includes: • Advertising the position. • Accepting, tracking and maintaining the applications. • Scheduling pre-employment physical examinations (if required). • Advising and assisting departments in solving performance problems or other policy issues with supplemental employees. • Orienting supplemental employees. Exhibit A 5 Packet Pg. 78 Item 9 Supplemental Employee Policy Revised November 20187 Page 4 of 11 Department Heads / Supervisors The department heads / supervisors or designee have primary responsibility for the implementation of the Supplemental Staff Policy within their department/division. It is the responsibility of the department heads / supervisors or designee to: • Determine if funding is available within the department budget to hire temporary supplemental help. • Determine with the assistance of the Human Resources Department if a pre- employment physical is needed. • Schedule an orientation with the Human Resources Department on the first day of employment. Parks and Recreation will orient their own supplemental employees. CRITERIA FOR SUPPLEMENTAL STAFF TO EXCEED 1,000 HOURS Supplemental staff are not eligible for PERS retirement benefits unless they exceed 1,000 paid hours (regular, sick leave, OT) in a fiscal year or the employee has previously qualified for PERS retirement. If the supplemental employee is projected to exceed 1,000 hours, a City Manager report requesting approval to allow a supplemental employee to exceed 1,000 hours in a fiscal year should be submitted and contain the following information: • Name, classification, and hire date of the supplemental employee. • A discussion of the critical need for the employee to work more than 1,000 hours in a fiscal year. • A brief description of the employee’s work assignment. • Hours worked to date and estimated date employee will exceed 1,000 hours. • The time frame of the expected need for this employee to work more than 1,000 hours per fiscal year. • Training the department has invested in this employee. • The recruitment difficulties the department has experienced, if any. • The anticipated increases in costs for PERS retirement. Estimate the dollar amount for the remainder of the current fiscal year and for the next full fiscal year. • Any alternatives, including hiring more supplemental employees to keep them under the 1,000-hour limit. • The consequences if the request is not approved. • Other information to support the request. See Appendix A for a sample City Manager Report. BARGAINING UNIT Supplemental staff are not covered by nor represented by any bargaining unit. Exhibit A 6 Packet Pg. 79 Item 9 Supplemental Employee Policy Revised November 20187 Page 5 of 11 COMPENSATION Salary All supplemental employees shall be paid in accordance with the Supplemental Employee Salary Ranges. The starting step of pay can be assigned at the discretion of the Department Head. Rationale for placing an employee above Step 1 will be specified on the Personnel Action Form. If an employee is performing two different jobs within the City, they will code their timecard with the appropriate account number for each different job and submit a Personnel Action Form. Overtime Overtime is defined as all hours preauthorized by management and worked by the supplemental employee more than forty (40) hours worked in a work period. All overtime shall be authorized in writing by the department head or designee prior to being worked. Overtime shall be compensated in cash at one and one half (1 1/2) times the employee’s regular rate of pay. Criteria for Step Increase Step increases shall not be automatic or simply a function of time in position. Consideration for a step increase should be based on both the employee’s satisfactory performance and the accumulation of working 1,040 520 hours at a current step in their current classification. 1,040 hours is considered half-time, as a full-time employee works 2,080 hours per year.. A discretionary increase may be considered prior to completion of 1,040 520 hours of City employment to retain key skills. Any step increase recommended by the Department Head must be in alignment with the City’s Supplemental Employee Salary Ranges and approved By Human Resources. Request for a discretionary increase must be accompanied by written justification from the supervisor. Guidelines for discretionary increases are set by each division and shall be applied equally. Increases are not applied retroactively. Increases are not intended to imply long-term continuation of employment, but to recognize performance and address retention of critical skills and certifications to avoid unnecessary turnover costs. Increases larger than one step must be accompanied by appropriate written justification and are allowed one time within a salary range. Salary Range Adjustments Per the City’s Compensation Philosophy, supplemental employee salary ranges will be evaluated periodically for market competitiveness, effectiveness, and compliance with State law. Multiple Classifications Exhibit A 7 Packet Pg. 80 Item 9 Supplemental Employee Policy Revised November 20187 Page 6 of 11 For employees working in multiple classifications, the department will need to list out all classifications (including account, department, supervisor, pay rate) on a Personnel Action Form. EVALUATIONS FOR CONTRACT EMPLOYEES Contract employees with a term of more than one year will be evaluated using the guidelines below. The format of evaluations is up to the discretion of the department; they may use the evaluation template or write a memo. Management/Exempt Employees Within two weeks of employment, the supervisor will work with the employee to create their goals. This will provide a framework within which the employee will be evaluated. At the six-month mark an evaluation is recommended, but not required. An annual evaluation will then be required for the duration of their contract, as well as updated goals each year. Non-Exempt Employees Within two weeks of employment, the supervisor will work with the employee to set expectations. This will provide a framework within which the employee will be evaluated. At the six-month mark an evaluation is recommended, but not required. An annual evaluation will then be required for the duration of their contract. EMPLOYMENT OPPORTUNITY PROGRAM Supplemental employees who meet the minimum qualifications are eligible to compete for open positions as part of the Employment Opportunities Program (EOP). The Program is designed to give current employees a window of opportunity to apply for and possibly transfer or promote into another classification when there is a vacancy prior to the start of an outside recruitment. TERMINATION Per the Personnel Rules and Regulations (2.36.190 D 3) a supplemental employee may be removed at any time without the right of appeal or hearing. Exhibit A 8 Packet Pg. 81 Item 9 Supplemental Employee Policy Revised November 20187 Page 7 of 11 Exhibit A Type Duration Mandatory Benefits Health Cont. PERS Seasonal FT <6 M No Contract Must offer upon hire if the employee will be working 30 hours on average over a four- month period. Must offer if the employee works 30 hours on average over a four-month period. Must enroll upon hire if they are expected to exceed the 1,000-hour limit within a fiscal year. Must enroll if the employee exceeds the 1,000-hour limit within a fiscal year. PT <6 M No Contract No enrollment required. No enrollment required. Occasional FT <6 M No Contract Must offer upon hire if the employee will be working 30 hours on average over a four- month period. Must offer if the employee works 30 hours on average over a four-month period. Must enroll upon hire if they are expected to exceed the 1,000-hour limit within a fiscal year. Must enroll if the employee exceeds the 1,000-hour limit within a fiscal year. >6 M Contract Must offer upon hire. Must enroll upon hire. PT <6 M No Contract No enrollment required. No enrollment required. >6 M Contract Must offer upon hire if the employee will be working 30 hours on average over a four- month period. Must offer if the employee works 30 hours on average over a four-month period. Must enroll upon hire if they are expected to exceed the 1,000-hour limit within a fiscal year. Must enroll if the employee exceeds the 1,000-hour limit within a fiscal year. Ongoing FT >6 M Contract Must offer upon hire. Must enroll upon hire. PT >6 M No Contract Must offer upon hire if the employee will be working 30 hours on average over a four- month period. Must offer if the employee works 30 hours on average over a four-month period. Must enroll upon hire if they are expected to exceed the 1,000-hour limit within a fiscal year. Must enroll if the employee exceeds the 1,000-hour limit within a fiscal year. Exhibit A 9 Packet Pg. 82 Item 9 Supplemental Employee Policy Revised November 20187 Page 8 of 11 Appendix A – Sample City Manager Report Final City Manager Approval Approver Name Date Approved City Administration Approver’s Initials Month/Day Reviewer Routing List Reviewer Name Date Reviewed Finance & Information Technology Reviewer Initials Month/Day Human Resources Reviewer Initials Month/Day DATE FROM: Department Head, Department Signature PREPARED BY: Name, Position Title SUBJECT: PERS Enrollment 1000 hours - Williamson RECOMMENDATION Authorize Part Time/Temporary Lifeguard Lindsey Williamson’s enrollment in the PERS system effective May 25, 2017. In this section you explain what you are asking for. DISCUSSION Background Information Lindsey Williamson was hired on July 3, 2015 and presently works two different jobs for the City: Lifeguard/City Worker 3 and Swim Instructor/ City Worker 4. On May 25, 2017 Lindsey will exceed the 1,000 hour mark limitation on part time temporary employees and therefore must be enrolled in PERS as of that date. To minimize ongoing costs she could be terminated and another temporary employee hired that would not be in PERS. This is where you include background information such as hire date, an overview of the situation, or any other important information to understanding the situation. Below, you outline specifics of why this occurrence happened / is happening, what needs to be done, and alternatives to your recommendation. Exhibit A 10 Packet Pg. 83 Item 9 Supplemental Employee Policy Revised November 20187 Page 9 of 11 Significant staff transitions in Aquatics and Facilities in 2017 and Lindsey stepped up Recruitment for Aquatics staff is an on-going struggle due in part to the number of weekly shifts needing to be filled and the now recovered economy. In addition, the majority of staff are college students whose work availability is dependent on their class schedules; therefore they require a work schedule that must change from quarter to quarter to “fit” their academic schedule. Lindsey is a trained, available employee who has filled the gaps with scheduling for the past year. In Aquatics, due to the low numbers of employees and slow recruitment, Lindsey was asked to fill in for additional shifts as a swim instructor for swim lessons, lifeguards, and assist incoming staff shadow shifts in May. Why Will Staff Allow Lindsey Williamson to Exceed 1,000 hours in a Fiscal Year? Because she is a great employee, and because May and June are the busiest months of the year for Parks and Recreation, Lindsey has covered and will cover several extra shifts at the pool and facilities. She was covering for sick staff in May (the stomach flu made the rounds) and one of the only employees able to work these shifts. With the slow recruitment process, student scheduling issues, and illnesses, the options are either to allow Lindsey to work the extra hours, have regular staff work these shifts (taking away from their priorities and costing over twice as much per hour), be understaffed which would result in a safety issue, or close the pool altogether. Why is it critical to authorize this employee to be enrolled in PERS? 1. We are legally required to enroll Lindsey in PERS because she will exceed 1,000 hours in a fiscal year. Not enrolling her in PERS could subject the City to penalties that could far exceed the additional cost of PERS. In her Assigned Division continuity of staff and relationships is highly valued. Lindsey has shown a passion for the Parks and Recreation Department. Her job duties include: patron safety, recognizing and responding to emergencies, enforcing rules and regulations of the facility, head lifeguard duties, swim lesson instruction, maintaining effective working relationships with staff and the public, and assisting in lifeguard training. Lindsey is a “natural” leader and brings a positive attitude to the programs. She is an excellent communicator and the positive relationship she has cultivated with the children in her lessons and families is invaluable and irreplaceable. Lindsey’s passion and devotion to quality programming and enriching opportunities is evident in all she does. She is well liked by patrons of the pool, students she has taught, and regular users of our facilities. Significant training has been provided to this employee. Along with being trained in general City policies and procedures, Lindsey has been trained in over 80 hours of intensive and general training pertaining to Aquatics, including: First Aid and CPR, Mandated Child Abuse Reporting procedures, emergency action plans, water rescue skills, facility policies and procedures, facility safety checks, Active registration system. Exhibit A 11 Packet Pg. 84 Item 9 Supplemental Employee Policy Revised November 20187 Page 10 of 11 Longer term Lindsey would be a natural fit as a LBT. Lindsey began working for the Parks and Recreation Department as a Lifeguard in Aquatics. Once she met the requirements for the lifeguarding role, she was immediately assigned higher designations and given more responsibility based on her exemplary work performance. Currently, she is a head lifeguard who is being trained for upcoming department specialist positions. Lindsey is dependable, committed, a self-starter and has exceeded all expectations. Due to all of this Lindsey would be a natural fit for a future LBT (PERS budgeted) vacancy. If the past is a guide, Parks and Rec experiences an average of one LBT vacancy a year (i f not more) due to promotions and other transitions. This succession planning effort allows for program Supervisors to retain quality employees and provide programmatic consistency while reducing recruitment and training costs. If this were to occur, future PERS costs for Lindsey would be folded into her salary as PERS costs are included in the costs of limited benefit temporary employees. Consequently, if the request is not approved, Lindsey would have to be terminated resulting in the loss of consistent, hard-working, and quality employee. There would be significant training costs associated with adding another staff member of Lindsey’s caliber. What alternatives are there, including hiring more temp employees in order to keep them under the 1000-hour limit? 1. Increase tracking of all multiple division staff. Work with staff, in addition to Supervisors, to better understand the limitations present by keeping employees under the 1000 hours threshold by scheduling fewer hours for the employee per division. Doing bi- monthly Intellitime checks and balances once an employee is at or near 750 hours as related to internal staff hour tracking. 2. Lower the Department Policy Restrictions on Hours Worked. Lower the stop work threshold to 820 hours. 3. Hiring More Staff. Hiring more temporary employees for the aquatics program. This is not desired as summer is the high season while the hours are cut dramatically in the off season. It takes about a month from the time the position is opened to the employee’s start date, so if we started recruiting now it would be a position that would last for about six weeks. This position would have to undergo rigorous training to comply with safety standards and would not be worth the cost of the recruitment process for the short time they are employed. CONCURRENCES The Human Resources Director concurs with the recommendations of this report. FISCAL IMPACT Exhibit A 12 Packet Pg. 85 Item 9 Supplemental Employee Policy Revised November 20187 Page 11 of 11 Assuming this employee remains an active part time employee in 2016-17 and in the current position, and roughly the same number of hours the added annual cost would be approximately $3,030. The projected increased cost of the proposed change for this employee can be accommodated within the existing budget for temporary salaries for Parks and Recreation. This is where you explain the direct fiscal impact of your recommendation, if there is any. Exhibit A 13 Packet Pg. 86 Item 9