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HomeMy WebLinkAbout08/19/1997, C-2 - TUITION REIMBURSEMENT PROGRAM counci L acEnaa Repout Cz C I T Y O F SAN LUIS O B I S P O FROM: Ann Slate,Personnel Director Prepared By: Jill Sylvain,Personnel Analyst SUBJECT: TUITION REIMBURSEMENT PROGRAM CAO RECOMMENDATION Adopt a resolution approving the City's Tuition Reimbursement Program DISCUSSION For several years the City's Affirmative Action Committee has been recommending the implementation of a Tuition Reimbursement Program to encourage excellence of performance, employee development, and the ability to promote at all levels by sharing the costs of educational programs. The Personnel Board echoed this request when they recommended Council adopt an educational assistance program in their 1997-98 goals. During the 1997-99 budget process Council approved $13,900 in the Personnel Department budget to fund the program in the current fiscal year and the same amount for the 1998-99 fiscal year. A survey of other cities that have similar programs indicated that probably no more than 5% of the City's work force would participate; the $13,900 funding should accommodate this number. To participate in this program a person must be a regular employee who has passed probation, completed the application form, and received approval from both their department head and the Personnel Director prior to enrolling in the class. When either the department head or the Personnel Director do not approve the course for reimbursement, an appeal may be made to the City Administrative Officer for a final decision. For a class to be eligible there are strict requirements as outlined in Exhibit A, attached. In addition courses must be taken for credit (audited courses are not reimbursable) and the employee must receive a grade of "C"or better. Upon completion of the class(es) the employee submits a reimbursement form to the Personnel Department with the required documentation and receipts prior to being reimbursed for registration, tuition, lab fees and books. There is a cap of$850 per year per employee. An employee must continue in a regular position in the City service for one year from the date of completion of the course. If the employee resigns or is discharged within a year they have agreed to reimburse the City for any moneys received through this program in the prior twelve months. The maximum forfeiture amount is $500. Since an employee has devoted considerable personal time and unreimbursed expenses toward course completion, it is appropriate to limit the amount forfeited. e.a Council Agenda Report-Tuition Reimbursement Program Page 2 It is the intent of this program to provide incentives to employees who seek higher education to prepare them for promotional opportunities in the City as well as enhance skill levels and productivity. Projections of the labor market statewide and nationally indicate that there will be a shortage of highly qualified job applicants for technical and highly skilled positions in the future. The City has already been experiencing that trend. This program should assist us in "succession planning" or assisting employees by enhancing their opportunities to grow within the City organization. The City will be able to capitalize on the benefits of promoting from within. These benefits include knowing the value of employees with a proven City track record, not dealing with the transitional issues associated with the relocation of new employees (spousal employment and housing costs) and increased employee productivity,morale and sense of team. CONCURRENCES The Affirmative Action Committee, the Personnel Board and department heads have reviewed and approved the program. FISCAL IMPACT Funds are available as allocated in the 1997-99 Financial Plan. ALTERNATIVES • Do not approve the Tuition Reimbursement Program. This would be counter to the Council's previous commitment during the 1997-98 Council Goals Workshop (February 1 and 4, 1997) to implement some form of a tuition reimbursement program. In addition on June 17, 1997 Council adopted the budget which included two years of funding for this program. • Scale back the current allocation and fund at a lower level. Because the program is designed on a first come, first serve basis it is possible that some employees would not receive the benefit they anticipated. ATTACHMENTS Resolution approving the City's Tuition Reimbursement Program EXHIBITS A. Proposed Tuition Reimbursement Program B. 1997-99 Significant Operating Program Change RESOLUTION NO. (1997 Series) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO ESTABLISHING A TUITION REIMBURSEMENT PROGRAM WHEREAS, THE City wants to encourage excellence of performance, employee development, and the ability to promote at all levels by sharing the cost of educational programs ; and WHEREAS, the Council desires to demonstrate the importance the City places on continued education to tap our employee's commitment and capacity to learn at all levels of our organization. NOW THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo that the Tuition Reimbursement Program provided in Exhibit A and attached hereto is hereby adopted. On motion of seconded by and on the following roll call vote: AYES: NOES: ABSENT: the foregoing Resolution was passed and adopted this day of 11997. ATTEST: City Clerk Mayor Allen Settle APPROVED AS TO FORM: City Attorney t�l�a Mai crty of san lues oB sN TUITION REIMBURSEMENT PROGRAM PURPOSE To establish guidelines and procedures for the approval and processing of tuition reimbursement requests. The Tuition Reimbursement Program is designed in part to enhance the City's equal employment opportunities. POLICY It is the policy of the City of San Luis Obispo to encourage excellence of performance, employee development, and the ability to promote at all levels by sharing the cost of educational programs. The City will reimburse educational costs which are directly related to the employee's occupational field with the City or are related to and part of a planned course of study being actively pursued for promotion within the City service. For this purpose, the City shall reimburse up to $850 annually for the costs of tuition, registration, books and lab fees. Travel and parking are not covered expenses. There shall be no obligation to the City to reschedule the normal work hours of eligible employees to facilitate their participation in the Tuition Reimbursement Program. ELIGIBILITY REQUIREMENTS To be eligible for the program the employee must be a regular employee who has passed his or her initial probation with the City of San Luis Obispo. A pro-rated amount will be calculated for regular part-time employees (i.e., a regular half-time employee could receive up to $425 annually). The employee must have completed the reimbursement form and received approval from his or her department head and the Personnel Director prior to enrolling in the course. When either the department head or the Personnel Director do not agree that the course qualifies for tuition reimbursement, a final decision will be made by the City Administrative Officer. Courses must be taken for credit; audited courses will not be reimbursed. Additionally, the employee must satisfactorily complete the course and receive a grade of "C" or better or a "pass" in a pass/fail grading. ELIGIBLE COURSES I. Eligible courses must have a reasonable potential to offer substantial benefit to the City. 2. Eligible courses must be directly related to the employee's occupational field with the City, or directly related to and part of a planned course of study being actively pursued for promotion and career development with the City. Page 1 of 2 n 3. Eligible courses must be presented by an accredited high school, college, university or other accredited institutions. INELIGIBLE COURSES 1. Courses taken to bring unsatisfactory job performance up to an acceptable level. 2. Courses that duplicate in-service training or other training the employee has already received. 3. Courses an employee is required, by the department head, to attend will be considered training and will not be reimbursed through the tuition reimbursement program. 4. Courses for which the employee receives reimbursement from any other sources. CONTINUED SERVICE REQUIREMENT An employee must continue in a regular position in the City service for one (1) year from the date of completion of the course. Failure to continue in the City service, through resignation or discharge, will result in the forfeiture of any tuition reimbursement payments received up to one (1) year prior to separation. The maximum forfeiture amount would be $500. In such situations, the employee agrees that the Finance Department is authorized to make a deduction from the employee's final payroll check for the appropriate amount of tuition reimbursement to be forfeited. PROCEDURES The employee shall submit a completed Tuition Reimbursement Application form to his/her Department Head for approval at least three (3) weeks prior to the first class session. The Department Head will forward the form indicating approval or disapproval within five (5) working days to the Personnel Director. The completed form indicating approval or disapproval from the Personnel Director will be returned to the employee within another five (5)working days. When either the department head or the Personnel Director do not approve the course, an appeal may be made to the City Administrative Officer for a final decision. Upon completion of the course, the employee shall submit a completed Tuition Reimbursement Request form to the Personnel Department with the required documents in the form of a transcript or a grade card signed and dated by the instructor and receipts for registration, tuition, lab fees and books. A copy of the request will be forwarded to the Finance Department. They will issue a check in the proper amount. A copy of the approved request and proof of completion will be filed in the employee's personnel file. Page 2 of 2 1997-99 Financial Plan SIGNIFICANT OPERATING PROGRAM CHANGE PROGRAM: Personnel Administration REQUEST TITLE: Tuition Reimbursement Policy Request Summary This request is to provide funding for the newly developed Tuition Reimbursement Policy (the proposed policy is attached; it is anticipated that Council will approve the Policy in June of 1997). It is difficult to estimate how many employees will use the program and the amount employees will use per year (there is an $850.00 cap per employee).A survey conducted of several other organizations with similar programs suggest the usage could be as low as 1% and as high as 8%. Personnel believes no more than 5% of the employees will participate during the first year. This equates into a funding request of$13,900. The initial reimbursement process will be on a first come,first serve basis, so no further monies will be requested for the 1997-98 fiscal year. After analyzing usage of the program for several years we will have more concrete data of employee participation and be in a better position to predict what the average usage will be. Key Objectives IN To comply with the City's Affirmative Action Plan. ■ To encourage excellence of performance, employee development, and the ability to promote at all levels by sharing the cost of educational programs. ■ To demonstrate the importance the City places on continued education to tap our employee's commitment and capacity to learn at all levels of our organization Factors Driving the Request for Change m A request from the City's Personnel Board for Council to adopt an educational assistance program in their 1997-98 goals. e A commitment from the Council during the Council Goals Workshop (February 1 and 4, 1997) to implement some form of a tuition reimbursement program for City employees. IN A recognition that providing opportunities for employees to gain further education and/or training is a direct benefit to the City. Alternatives ■ Do not fund the Tuition Reimbursement Policy. ■ Partially fund the current request and review employee usage at the end of the 1997-98 fiscal year for future funding. Because the program is designed on a first come, first serve basis it is possible that some employees would not receive the benefit they anticipated.. ev —lo Tuition Reimbursement Policy �.:ontinued) Cost Summary Operating Costs Current Costs Cost Change: ECosthange:,1997-98 98-99 . Funded Amount 0 $13,900 $13,900 TOTAL . 1 0 S13,900 $13,900 Implementation The proposed policy was developed by the Affirmative Action Committee and has been reviewed by Personnel, Finance,and Administration Departments. It is ready for implementation. With approval of this request all regular City employees will receive a copy of the Tuition Reimbursement Policy. On a first come, first served basis, monies will be reimbursed to employees that properly comply'with the requirements of the Policy. Attachment Proposed Tuition Reimbursement Policy