Memorandum 17-086 Personnel Regulations Amendments

MEMORANDUM 17-086

TO:                  City Council
THRU:              Katie Koester, City Manager
FROM:             Andrea Browning, HR Director
DATE:              June 12, 2017
RE:                   Personnel Regulation Revisions

The Personnel Regulations are periodically reviewed in order to determine if revision and/or clarifications are necessary.   The following proposed changes take into consideration recommendations by:

The Employee Committee (after receiving input from their respective departments)
Department Heads
Attorney suggestions
Administration

Suggestions were compiled by HR, and discussed with the Employee Committee, Department Heads, and the City Manager. 

Employee proposals ranged from adding Life Insurance as a benefit for part-time employees, implementing that City offices close at 12:00pm on Christmas Eve and New Year’s Eve, to removing the cap on Sick Leave entirely.  After a careful vetting process and much consideration given to best practices and fiscal impacts, Administration recommends the following revisions. 

Change Community Schools to read Community Recreation (clerical)

Provision clarifying the City Manager can supervise family members who report directly to the City Manager provided the employees are in different departments (City Attorney recommends clarification).  The current regulations permit the City Manager to supervise family members if employed in different departments.  Attorney recommends clarifying language to avoid ambiguity regarding when employees become family.

Current Personnel Regs require satisfactory performance for merit increase.  Change requires above satisfactory performance in to be eligible for step increases.

Fire Dept. and Police Dept. want to observe the “actual holiday” vs. City’s recognized holidays.  As is, if Christmas falls on a Sunday, employees at these departments that work Christmas day do not receive Holiday Pay because the City’s recognized holiday falls on that Monday.  There is no fiscal impact.

Current Personnel Regulations require employees to take 40 hours of Annual Leave.  Proposed change would require employees to take 80 hours of Annual Leave.  This is a healthier practice and makes for a more productive workplace.
Increase Sick Leave cap to 80 hours.  Sick Leave cannot be cashed out during employment or upon termination, or donated to other employees, so there is no cash value to these leave banks.
Change “Department” to “Division” in highlighted Section 12.3 Layoffs. 

Chapter 2

Current Personnel Regs read:

2.2.3      Division:  A subdivision of a department whose chief supervisor has a direct reporting relationship to a Department Director.  Divisions are found in the Police, Fire, Port, Public Works, Administration and Finance Departments. Divisions include, but are not limited to, the fish dock and harbormaster divisions of the Port and Harbor Department; operation & maintenance, and water & sewer treatment divisions of Public Works Department.  Divisions may also be established by the City Manager, when, due to insufficient employees or other reasons department status is unwarranted but division status is warranted due to the responsibilities assigned. The supervisors of such administrative divisions may report directly to the City Manager.  Such divisions include, but are not limited to, the Library, Planning and Zoning, City Clerk's, Personnel and Community Schools.

Change:  Change highlighted word to Recreation.

Chapter 3

Current Personnel Regs read:

3.14.3  If two employees working in the same department or in a supervisory/subordinate capacity become family members the City may permit one of the employees to transfer to another department where neither employee supervises, reports to or audits the other employee and the employees do not report directly to the same supervisor if a position is available. If a transfer cannot be accomplished the City must terminate the employment of one of the employees. The City Manager shall determine which employee to terminate based upon the needs of the City.

Addition:  (Recommended by attorney) *New language highlighted*

Amended 3.14.3 will read:

3.14.3  If two employees working in the same department or in a supervisory/subordinate capacity become family members the City may permit one of the employees to transfer to another department where neither employee supervises, reports to or audits the other employee and the employees do not report directly to the same supervisor if a position is available. This provision permits the City Manager to supervise family members who report directly to the City Manager; provided the employees are in different departments. If a transfer cannot be accomplished the City must terminate the employment of one of the employees. The City Manager shall determine which employee to terminate based upon the needs of the City.

Chapter 5

Current Personnel Regs read:

5.3.3      Steps C through O - Further advancement is generally dependent upon satisfactory performance for at least one year from the anniversary date in the position at each salary step. An employee may be advanced an additional salary step if the Department Director and City Manager determine the employee's performance has been vastly superior and has exceeded the requirements for the position.

Change:  Current Personnel Regs require satisfactory performance for merit increase.  Change requires above satisfactory performance in consideration of step increases.  *New language highlighted*

Amended 5.3.3 will read:

5.3.3      Steps C through O - Further advancement is generally dependent upon above satisfactory performance, with an overall rating of “Good.”  This indicates the employee more than fulfills essential requirements of the position, for at least one year from the anniversary date in the position at each salary step.  An employee may be advanced an additional salary step if the Department Director and City Manager determine the employee's performance has been vastly superior and has exceeded the requirements for the position.

Chapter 6

Current Personnel Regs read:

6.1          Recognized Holidays.  All full-time employees will receive eight hours of holiday pay for each recognized holiday whether worked or not. The holiday pay will be based on the employee’s hourly rate of pay, excluding shift differential. Full-time employees that work on a recognized holiday will be paid overtime for all hours worked in addition to receiving eight hours of holiday pay. The eight hours holiday pay is not considered work time and will not be counted as hours worked for the purposes of overtime calculation.

If the holiday falls on a Sunday, the following Monday shall be the recognized holiday. If the holiday falls on a Saturday, the preceding Friday shall be the recognized holiday. Employees whose work day is more than eight hours and who do not work the recognized holiday can be paid less than their scheduled work day or use leave or compensatory time to accumulate the additional hours to meet their work day…

Change:  Clarification of current holiday pay application, and implementing holidays observed on “actual” (vs. City’s recognized holidays) for Police and Fire Department employees.  This excludes exempt employees.

Amended 6.1 will read:

6.1          Recognized Holidays.  All full-time employees will receive eight hours of holiday pay for each recognized holiday whether worked or not. The holiday pay will be based on the employee’s hourly rate of pay, excluding shift differential. Full-time employees that work on a recognized holiday will be paid overtime for all hours worked in addition to receiving eight hours of holiday pay.  Employees whose workday is more than eight hours, still only receive eight hours of holiday pay.  The eight hours holiday pay is not considered work time and will not be counted as hours worked for the purposes of overtime calculation. Holidays occurring during an employee's scheduled vacation are treated as holidays and are not counted as annual leave hours/days.  Paid holidays are not available to employees on workers’ compensation leave.

If the holiday falls on a Sunday, the following Monday shall be the recognized holiday. If the holiday falls on a Saturday, the preceding Friday shall be the recognized holiday. Employees whose work day is more than eight hours and who do not work the recognized holiday can be paid less than their scheduled work day or use leave or compensatory time to accumulate the additional hours to meet their work day…

Police and Fire Department Employees.  Holidays shall be observed on the actual day the holiday falls.  This shall apply to ESS personnel at the Fire Department (excludes the Department Services Coordinator).  Exempt employees at Police and Fire Departments are excluded from this provision and are still subject to the City’s Recognized Holidays.

Chapter 6

Current Personnel Regs read:

6.5          Annual Mandatory Leave Requirement. At least 40 hours of leave must be taken annually following completion of one year of full-time continuous service.  This regulation does not apply to part-time employees.  No more than 35 days of leave, excluding compensatory and sick leave, may be taken annually without prior approval of the City Manager.

Change:  Require employees to take 80 hours of Annual Leave per year (beginning in 2018).  Requires City Manager approval for Annual Leave of three or more consecutive workweeks.

Amended 6.5 will read:

6.5          Annual Mandatory Leave Requirement. At least 80 hours of Annual Leave must be taken per calendar year, following completion of one year of full-time continuous service.  This regulation does not apply to part-time employees.  Annual Leave of three or more consecutive workweeks requires City Manager approval.  No more than 35 days of leave, excluding compensatory and sick leave, may be taken annually without prior approval of the City Manager.

Chapter 6

Current Personnel Regs read:

6.8          Sick Leave.  In addition to the leave bank full-time employees will receive 40 hours in a calendar year to be placed in a sick leave bank during the first pay period in January. Sick leave hours not used by year end cannot be carried over, cashed out during employment or upon termination or donated to other employees. After sick leave is exhausted employees are required to use their annual leave. Advance approval by the Department Director must be obtained in writing before taking sick leave for scheduled appointments or medical procedures of 1 day or more. Sick leave will be prorated monthly for employees starting work after January 1st. Sick leave may be used for any absence due to personal injury, illness or temporary disability, personal medical and dental appointments, or the illness or injury of a spouse or minor son or daughter or the need to accompany a spouse or minor son or daughter to a medical appointment.  Sick leave cannot be used for any absences where the employee is entitled to receive compensation benefits under the Alaska Workers Compensation Act.

Change:  Increase the sick leave cap to 80 hours.

Amended 6.8 will read:

6.8          Sick Leave.  Employees will receive 40 hours leave in a calendar year to be placed in a Sick Leave bank during the first pay period in January. Sick Leave hours not used by year end can be accrued and carried over, however, Sick Leave banks cannot exceed 80 hours.  If a Sick Leave Bank has over 40 hours at the end of the year, fewer than 40 hours will be added during the first pay period in January so there is not an excess of 80 hours accrued.   Sick Leave cannot be cashed out during employment or upon termination or donated to other employees. After sick leave is exhausted employees are required to use their annual leave. Advance approval by the Department Director must be obtained in writing before taking sick leave for scheduled appointments or medical procedures of 1 day or more. Sick leave will be prorated monthly for employees starting work after January 1st. Sick leave may be used for any absence due to personal injury, illness or temporary disability, personal medical and dental appointments, or the illness or injury of a spouse or minor son or daughter or the need to accompany a spouse or minor son or daughter to a medical appointment.  Sick leave cannot be used for any absences where the employee is entitled to receive compensation benefits under the Alaska Workers Compensation Act.

Chapter 12

Current Personnel Regs read:

12.3        Lay Offs.  The City Manager may lay off employees whenever the abolishment of a position or other financial changes in the City's organization necessitates a reduction in the number of employees.  Casual, temporary, probationary or part-time employees within the Department in which the work force reduction is occurring shall be laid off before full-time employees.  If the City Manager deems it to be in the best interests of the City, full-time employees may be assigned to vacant part-time, temporary or casual positions in lieu of layoff, and at a pay rate determined to be appropriate by the City Manager, provided such employee possesses the qualifications for the vacant position. Layoffs by position shall be made in reverse order of employee seniority by job classification within each Department, unless an employee has had a less than satisfactory work performance evaluation and/or is on a disciplinary work plan. Employees scheduled for layoff may replace less senior employees within a Department in equal or lower classifications provided they are qualified to perform the work. Laid-off employees shall have first option for another open position within the City for which they are qualified. For the purposes of this section, first option shall mean that qualified laid off city employees will be hired for the position before the vacancy is advertised to the public. If there are several laid off employees, all of whom are qualified for the opening recall of the employees shall be in order of seniority.  Two weeks before the effective date of a lay off, the City Manager shall notify the employee being laid off, in writing, of the reasons for the layoff. The City Manager may place such an employee in another department where a vacancy exists provided the employee is qualified to assume the duties of the new assignment.

Change:  Change “Department” to “Division” in 12.3 in highlighted sections