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HomeMy WebLinkAbout09/04/2007• B A K E R S F I E L D Staff: John W. Stinson City Council members: Assistant City Manager Harold Hanson,-Chair David Couch Ken Weir SPECIAL MEETING NOTICE PERSONNEL COMMITTEE of the City Council -City of Bakersfield Tuesday, September 4, 2007 9:00 a.m. City Manager's Conference Room, Suite 201 Second Floor, City Hall, 1501 Truxtun Avenue, Bakersfield, CA AGENDA 1. ROLL CALL 2. ADOPT APRIL 23, 2007 AGENDA SUMMARY REPORT 3. PUBLIC STATEMENTS 4. NEW BUSINESS A. Discussion regarding a Military Leave Policy -Lozano, Tandy B. Discussion regarding Educa tional Reimbursement -Lozano, Tandy 5. COMMITTEE COMMEWTS 6. ADJOURNMENT B A K E R S F I E L D ~' 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 Butterfield, 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 bean 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~ months, and budgeted temporary help. Educational Requirements - 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 Veme 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 5:1Council Committees~2007\07 PersonnelWpril 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 wilt 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\2007\07 PersonnelWpril 23Wpril 23 ASR.doc Page 3 B A K E R S F I E L D MEMORANDUM TO: Alan Tandy, City Manager FROM: Javier Lozano, HR Manager ?~ SUBJECT: Military Leave Changes DATE: August 30, 2007 At the request of Counalmember Couch an analysis of the City's current Military Leavehas been conducted by Human Resources. As a result of this effort, the following information is provided with the intent of obtaining City Council direction. BACKGROUND Questions have been raised concerning compensation and benefits for City employees called to active duty. The City's policy has been to provide for military leave as required by law. The policy applies whether the employee is being placed on annual active duty training status of a few weeks or for longer assignments as required by law. The following background is provided for possible changes to the City's Military Leave Policy. Areas of discussion include: 1) Current Military Leave Policy, 2) Actions taken by other agencies, 3) Budget impact, 4) Options, and 5) Considerations. Current Military Leave Policy Current requirements under state and federal law are generally listed below. Each request for Military Leave must be individually analyzed as leave rights vary depending on circumstance. • 1 year City service required • Full salary for regularly scheduled working days or duty shifts during the first thirty (30) days while engaged in performance of ordered military duty. • For only those approved as part of the October 24, 2001 Council motion, beyond thirty (30) days pay are being paid differential pay to be kept whole • Receipt of vacation, sick leave, and holiday privileges at accrued rates based on differential • Receipt of same rights and privileges to promotion, employment, re-employment as if absence had not occurred • Re-employment rights if the employee returns from military leave within five years, in a position of like seniority, status and pay • All recognized military service shall be counted as City service time • Offer welfare benefits (medical/dental/vision insurance) per the Consolidated Omnibus Budget Reconciliation Act (COBRA) for up to 18 months. Cost is 102% (100% premium and 2% Admin Fee) • For those employees on Military Leave without pay they are allowed to use any accrued vacation or similar paid leave during a military leave • Only pay on any payroll amount of the employee's and the employer's contribution to PERS for the entire military leave time • Upon re-employment award salary adjustments the employee would have received had the employee not been absent Actions Taken By Other Agencies An analysis of the most current data provided by the League of Cities 2003 Military Leave Policies Survey of 33 cities and of current policies and practices of other several other cities (Modesto, Merced, Fresno, Santa Clarita), and Kern County is summarized as follows: Compensation (excluding benefits) • 38.9% of the cities reviewed pay a maximum of 30 days full pay in compliance with Federal and State requirements. • 25% of the cities reviewed pay 30 days full pay and the followed by differential pay between 31 to 180 days. • 27.8% of the cities reviewed pay 30 days full pay and then followed by differential pay for up to a maximum of 12 months. • 8.3% of the cities reviewed pay 30 days full pay and then followed by differential pay for the entire leave. Health and Retirement Benefits The majority of the cities comply with the State Law which is to offer COBRA type coverage at the 102% cost to the employee and dependents. Several cities pay for medical and dental for 30 to 180 days and the other cities pay for medical and dental premiums up to one year. For the County of Kern health benefits are handled as follows: • Employees receiving differential pay are subject to their portion of the premium or • Employees choosing military leave without pay shall have health benefits continue and the 20% premium waived TRICARE is the health care program for active Duty and Guard and Reserve service members and is provided under TRICARE automatically. Eligible military dependents can elect to enroll in TRICARE. Since the City participates in PERS it is subject to PERS rules. Because PERS contributions are based on earned wages there may be challenges in providing PERS contributions on any Differential Pay. It is importantto point out that underthe current IRS regulations the Differential Pay is considered Miscellaneous Income and must be reported as such and not as wages earned. Therefore this is not subject to PERS. Also continuing health benefits beyond the 30 days full pay may also subject the employee to additional IRS tax implications and also create an additional administrative burden on payroll and HR. Buds~et Impact Cost is difficult to estimate due to the fact that different variables and circumstances exist with each employee. Variables to consider would include the number of employees taking leave, military pay, length of leave, current City pay, and safety or non-safety employee benefit cost. In an effort to capture an estimated six month cost the following data is based on the current 14 employees that have used some aspect of military leave to date. Making the assumption that all 14 employees are called to duty for a period of six months the following calculations can be made: Assumptions: Differential Rate = 30% to 40% Safety Employees Benefit Cost = 76% Non-Safety Employee Benefit Cost = 48% Length of Leave = 6 months Employee Pay =Based on current rate of pay for the current 14 employees that have used military leave to date Six month cost = $196,166 to $227,126 (Includes 30 day pay required by law) Using the variables above this would result in an estimated average cost per employee between $14,012 and $16,227 for a six month military leave of absence. It is also important to point out that in a worst case scenario, should there be a large number of employees either called up or voluntarily activated for military duty, the financial burden on the City could be disastrous. Options Compensation (excluding benefits) A) City will pay 30 days full pay meeting theFederal and State requirements. B) City will pay 30 days full pay meeting the Federal and State requirements followed by differential pay between military pay and the employee's regular base pay commencing on day 31 up to day 180 of military leave. C) City will pay 30 days full pay meeting the Federal and State requirements followed by differential pay between military pay and the employee's regular base pay for a maximum of 11 months. Health and Retirement Benefits A) City will comply with legal requirements by providing the employee the opportunity to participate in continuation of benefits utilizing the COBRA concept. Under USERRA this would be for up to 24 months. Employee would be responsible for 102% of premiums. B) City will comply with legal requirements and pay for City portion of Health Benefits premiums for first 30 days of military leave parallel with the 30 days full pay. C) City will comply with legal requirements and also contribute any combination towards health benefits. Federal and State requirements specify that eligible employees on military leave are entitled to receive the same vacation, sick leave, holiday privileges and the same rights to promotion, and reemployment that the employee would have enjoyed had the absence not occurred. Under these same requirements the employer is liable regarding the pension benefit plan to fund any plan obligation to provide benefits attributable to the employee's period of service only after the employee's return. This would be difficult to estimate but would add an additional cost of providing a benefit for an employee on leave. What this means is the City would also have to pay any PERS contributions currently paid as if the employee never left. To fully comply, the City will update the Military Leave Policy to reflect adopted changes and to meet compliance with any updated laws and regulations pertaining to military leave. All City employees will be subject to this updated Military Leave Policy. Considerations It will be imperative that the following be taken intoconsideration: 1) One year service with the City is legally required minimurr~ and 2) A maximum time limit must be defined for compensation to plan for uncontrollable events; and 3) Technically for the City to pick up any Health Care cost the employee must be on "Active" status under our current provider agreements. Employees on military leave are not considered on "Active" status therefore may not be eligiblefor City contributions and 4) It is important to recognize that any Differential Pay and any continuation of Health Benefit payments by the Citymay create additional tax implications to these employees; and 5) That this is a policy which consistently applies to all eligible employees. B_ A K E R S F I E L D MEMORANDUM TO: Alan Tandy, City Manager FROM: Javier Lozano, HR Manager ~, SUBJECT: Education Reimbursement Enhancement DATE: August 30, 2007 Attached you will find the proposed Education Reimbursement Program. Enhancing the City's current Education Reimbursement program was part of the 9 Point Recruitment and Retention Plan proposed to the Personnel Committee in April 2007. The Personnel Committee supported the concept but needed additional clarity on whether the City could legally have a promissory note obligation for any monies invested in an employee's education. The purpose of the enhancement was to encourage employees to continue their education and therefore develop them as better qualified candidates for future City positions. This Policy would be a benefit for City employees to continue their education and not a requirement of employment or a condition of continued employment. Currently the educational reimbursement program is based on the California State University Bakersfield (CSUB) fee structure. The program consists of the following features: • 100% payment of tuition and fees equivalent to the CSUB tuition and fees • 100% cost on required books This enhancement would encourage education through accredited non-traditional education sources, making it easier for any employee to continue their education. In regards to whetherthe City could legally require a promissory note obligation for any monies invested in an employee's education in exchange for continual employment, legal counsel advises that it may be problematic and suggest that a pledge note specifying the following language be used instead. • The employee receiving reimbursement for specific coursewo~c shall agree to a pledge note willing to repay the City, with the understanding that the City will not pursue repayment if the employee remains a City employee for a period of two (2) years after the reimbursement for the specific coursework has been given. • The amount of repayment shall be a 24 month prorated amount based on the entire City reimbursement amount. TUITION REIMBURSEMENT GED or Related Education • Reimbursement for GED or related High School completion equivalent programs • Reimbursement for j ob enhancement related educational programs (not to include work related training) (Example: English, Grammar, Math, Typing classes, etc.) • Maximum annual benefit is $500 • Total lifetime maximum benefit $2000 Undergraduate Benefit • Tuition, Required Fees and Books (employee keeps books) reimbursement up to a maximum of $8,000 per year • Total lifetime maximum benefit of $32,000 Graduate Benefit • Tuition, Required Fees and Books (employee keeps books) reimbursement up to a maximum of $10,000 per year • Total lifetime maximum benefit of $20,000 Approval Criteria • Must be Full-Time, Regular employee having successfully completed hiring probation period • Approval by Dept Head prior to enrolling in course(s) • Completion of Tuition Reimbursement Form and Pledge Note for each course prior to enrolling in course(s) • The employee receiving reimbursement for specific coursework shall agree to a pledge note willing to repay the City, with the understanding that the City will not pursue repayment if the employee remains a City employee for a period of two (2) years after the reimbursement for that coursework has been given. • The amount of repayment shall be a 24 month prorated amount based on the entire City reimbursement amount. S:\JAVIER\2007 Files\Recruitment & Retention\Tuition Reimbursement(4).doc • Course and/or Program must be directly related to employee's current position or determined to add value to the City of Bakersfield • Reimbursement will be for only course(s) and/or program(s), of either traditional or non-traditional course(s) including on-line class(s), which meet the following or equivalent accreditation: o Western Association of Schools and Colleges (WASC) o Council on Higher Education (CHEA) o National Association of Schools of Public Affairs and Administration (NASPAA) o American Bar Association (ABA) o California Department of Education • No reimbursement for mail order, correspondence or non-accredited schools will be allowed. Reimbursement Approval Criteria • For undergraduate program, completion of approved course(s) with a grade of "C" or better is required. • For graduate program, completion of approved course(s) with a grade of "B" or better is required. • Pass/Fail or Class Auditing will not be reimbursable. • Completion of Tuition Reimbursement Form after completion of course(s) • Submission of all receipts for tuition, fees and books. • Approval by Dept Head and submission of form to HR and Finance for payment. S:VAVIER\2007 Files\Recruitment & Retention\Tuition Reimbursement(4).doc PERSONNEL COMMITTEE MEETING Tuesday, September 4, 2007 ATTENDANCE LIST Na a i ~ Organization ~ Contact: Pone/ E-mail v \~ ~~ ~~ ~PRS ~~0,/.i 3z~ - 3S~ ~ 6wu~ ~ 8 KF-~ P ~i t-L_~ A H ~ ~ ~~~ W+{VCa NHS ~~ ~~ ~ ~ ~-,, ~ C.,,~~ 3 z~ - 37yo s~; ~ ~~~ i ~~,~~~~ s~ ~~~ ~ 2 ~ ~ s - ~ ~ ~ ~~/~~~ ~~G~2 ~/~ 3-~/ ~zs- ~~~7 ~~v ~ e~ ~., ~ z~ ~~ ~,`~~ ~z~ - 3~ka `~ tK~ ekka~ ~ 3 uo - 3 ~ 2./ .,--- _ ~~ ~~ ~ us