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Home My WebLink About04/23/2007 B A K E R S F I E L D 4 ~ Harold Hanson, Chair Staff: John W. Stinson David Couch Assistant City Manager Ken Weir AGENDA SUMMARY REPORT PERSONNEL COMMITTEE MEETING Monday, April 23, 2007 9:00 a.m. City Manager's Conference Room 1501 Truxtun Avenue Bakersfield, California 93301 1. ROLL CALL Called to Order at 8:59:24 AM Committee members present: Council member Harold Hanson, Chair Council members David Couch and Ken Weir Staff present: Alan Tandy, City Manager John W. Stinson and Christine Buttertield, Assistant City Managers Virginia Gennaro, City Attorney Javier Lozano, Human Resources Manager Stanley Grady, Development Services Director Sandra Jimenez, Assistant Finance Director Donna Kunz, Economic Development Director Retired employee: Margaret Ursin Others: Aimee Barajas and Chuck Waide, SEIU Local 521 2. ADOPT AUGUST 28, 2006 AGENDA SUMMARY REPORT Passed 3. PUBLIC STATEMENTS None 4. NEW BUSINESS A. Discussion regarding a Recruitment and Retention Plan City Manager Alan Tandy explained the City's problems with recruitment of employees. Many employees have gone to work for other municipalities or the private sector, where they can receive higher wages and overtime. Another issue is early retirement. The high level positions have been mostly affected by this. Public Safety has not experienced any recruitment problems; but it has faced multiple retirements at the same level simultaneously. Proposals include: Educational Incentive -This provides a 5% increase in our "below market" rate system, and may encourage employees without college degrees to get them. Phasing this in over time would serve as a retention tool in the transitional areas where managers are retiring or leaving before the City has a chance to train their successors. This plan is already being used in the Public Safety Departments, so this would now be an extension of the program. Home Ownership Assistance -The cost of this program would be $335,000 for FY 2008-09 and $670,000 per year after full phasing, which would begin July 1, 2009. HOME funds are used for this program. Economic Development Director Donna Kunz explained the City currently receives approximately $1 million in HOME funds annually. This money is used for new construction (rental or single-family), and down payment assistance in an effort to provide stabilization of neighborhoods and long-term affordability. Benefits include forgiveness provisions if you stay in the home for a period of time. The program works as follows: 15-year loan up to $40,000 after the first 5 years, '/< of the loan is forgiven, and after 10 years, another'/. is forgiven. The remaining balance would be due at the end of this 15-year period. The interest rate is low, and there are no payments made during this 15-year period. If the resident chooses to sell the home within the first 10 years, the buyer must be a qualifying individual for this program. If they choose to sell the home after 15 years, they may sell the home for whatever price and are still obligated to pay back this program. There are federal guidelines that allow the entire amount to be forgiven. Approximately 10% of current employees are eligible for this program, due to their pay and living situations. Employees are eligible after 6 months of employment, and they must be first time home buyers. Internship/Mentorina -This program is for an entry level position (which requires a Master's degree) for the higher paid titles, 3-6 months, and budgeted temporary help. Educational Reauirements - By raising the educational requirements on certain positions, the City has had problems filling these positions, due to the fact that current employees and applicants cannot meet the requirements. Some departments have been able to substitute experience for education. Tuition Reimbursement -The City currently has a tuition reimbursement program for employees that are receiving their education while employed with the City. The reimbursement rates are based on the cost of Cal State University Bakersfield (CSUB). It is difficult for employees to complete their required courses at CSUB, because these courses are not offered at night. Due to this issue, many employees would prefer to attend schools such as the University of La Verne or the University of .Phoenix. These schools are more costly and are not affordable to the employees; therefore, the City is proposing that 75% of the tuition be paid, and the employee would reimburse the City if they leave within a certain amount of time. Employees that currently have a degree which is pertinent to the ,:u:ouncil Committees~2007\07 PersonnetWpril 23Wpril 23 ASR.doc Page 2 City may be eligible to receive 50% of their increase July 1, 2008 and the other 50% of their increase on July 1, 2009. This increase would not reflect in their pension earnings until July 1, 2010. Committee Member Weir questioned if the City has considered outsourcing some of the jobs which are experiencing retention issues. According to City Manager Tandy, the City outsources approximately 55% of the positions in Solid Waste, the entire Water Resources field response, massive number of contracts in Planning and Engineering, and Legal. Committee Member Couch is uncertain about giving increases to those employees for degrees they have earned 10 - 15 years ago, he does like the home funding program, and feels the City could help employees with their education with an understanding that they remain with the City for a certain amount of time. With this understanding, he suggests that the City look into helping students, with their college tuition right out of high school or while in college. Human Resources Manager Javier Lozano suggested that the City build a relationship with the students, maybe through an internship, so they would come and work for the City voluntarily and happily. He also suggested afollow-up relationship with the university to assist with future referrals to students as the City being a great place to work. Committee Chair Hanson questioned the success of the job fair. According to Human Resources Manager Lozano, it went very well. Many applications were received and some applicants have already been hired. Committee Chair Hanson questioned the true reason of retention issues; whether it is due to retirement or are people just dissatisfied with their jobs. City Manager Tandy responded that the main issue the City is dealing with at this time is multiple retirements at the Department Head level. Committee Member Couch stated that this seems like a unique problem that will not get resolved with these recommendations. City Manager Tandy agrees that the tuition incentive will not help in this current situation, but this is not a unique problem and these recommendations will help retain employees in the long term. The 5% increase would improve an employee's retirement, and would currently retain at least one Department Head for an extended time. Committee Chair Hanson believes this is complicated and does not feel in a position to make recommendation. Staff suggested that the Home Ownership Program and Job Specification changes should move forward to Council for consideration, but feels that other alternatives on Education Incentive and Educational Pay should be brought back to the Personnel Committee. Motion by Weir; unanimously passed 5. COMMITTEE COMMENTS None 6. ADJOURNMENT The meeting was adjourned at 10:40:38 AM cc: Honorable Mayor and City Council S:\Council Committees\2007107 PersonnellApril 23Wpril 23 ASR.doc Page 3