MEMORANDUM 09-58

TO: Mayor Hornaday and City Council

THRU: Walt Wrede, City Manager

FROM: Sheri Hobbs, Personnel Director

DATE: April 21, 2009

RE: Personnel Regulations

The last revisions to the Personnel Regulations were in 2003. Several policy changes have been made in the last six years. The first draft of revisions was completed in September 2008 and submitted to employees for review and comment in October. After the employee review and comment period the regulations were forwarded to the city attorney for review. After the initial review the attorney’s requested that we move chapters and make several additional changes prior to their second review. This was completed and sent for a second attorney review.

Also during this time due to declining revenues administration determined it would be prudent to review the personnel regulations for any cost saving measures. Recommendations were made to eliminate shift pay for individual hours (shift pay provides additional pay for shifts that work from 4 p.m. to 8 a.m.). Employees would only be paid shift pay if at least half of their work day fell within a swing or graveyard shift. We also determined that a significant cost savings would result if only those employees that actually worked the holiday received overtime holiday pay. Current policy is that shift employees not scheduled to work on the holiday will have their first work day on be considered their holiday and receive overtime pay for all hours worked. These two changes are estimated to result in a $50,000 annual savings to the budget.

These recommendations were added and a second revised set of Personnel Regulations was sent to employees for review and comment in March. After the employee comment period ended in April some minor languages changes were made for clarification. Overall employees were very understanding of the need for cost saving measures.

During the past 25 years new policies had a tendency to be added to the end of the personnel regulations making locating policies difficult and chapters out of order. This final draft of Personnel Regulations is a complete revision of the existing regulations. It has incorporated several new policies, moved chapters, eliminated one chapter and clarified several existing policies. Our goal was to make city policies easy to find and clear to understand for employees. It was also our intent to set clear guidelines for employees on such issues as ethics, conflict of interest, travel and technology use. Listed below are some of the major changes to the regulations. Also attached is a table of contents with specific changes in each chapter for reference.

Regulation Description

3.13 Relatives are prohibited from being hired within the same department.

4.5 Salary increase for job description upgrades will be at least one step above current range. (Current regulation states as close to current pay range but no less.)

5.8 Employees will no longer receive shift differential pay unless at least half of their work hours are within a swing or graveyard shift. (Current regulation allows individual hours within shift.)

5.11 The total comp time hours that can be accrued for any one year will be capped at 80 hours. (Currently no cap on how much an employee can accumulate during a year, there is a cap on how much can be accrued at any one time of 40 hours.)

5.15 Temporary pay assignment will be at least two steps or Range A of position that employee is assigned to whichever is higher. (Currently one step.)

5.16 New travel and training policy. Travel required for overnight training will be recognized as travel time not work time and paid at the employee’s hourly rate of pay, overtime will not be paid. (Currently no formal policy in place.)

6.1 Holiday Pay. All employees will receive 8 hours of holiday pay but only employees that actually work on a recognized holiday will receive overtime. (Current policy of recognizing holiday on the employees first work day back on will be eliminated. It was a policy that was implemented back in the 80’s when we had smaller workforce and only a few employees working 10 hour days. We have a larger workforce now with 8, 10, 12 and 24 hours days so this policy has created a large overtime cost for the city.)

6.8 Sick leave bank of 40 hours added to regulations. (Council approved 4-9-07.)

6.10 Added Christmas and New Years Eve leave hours. (This has been an informal policy for over 30 years.)

6.11 Bereavement Leave, definition of family member has been expanded.

6.15 Added day off for 30 year anniversary.

6.18 Added Military Family leave per new federal regulations.

6.19 Revisions to Family Medical Leave per federal regulations.

8.5 Revisions to outside employment section.

8.7 Added Ethics and Conflict of Interest section.

8.8 Added Ethics Complaint section.

8.13 Added Office Technology section and expanded. (Employees previously signed separate technology policy.)

8.14 Revised city vehicle policy, additional requirements for take home vehicles added.

8.19 Revised personal business, personal cell phone use or texting discouraged

8.20 Personal items/equipment reminder to employees that personal vehicles used for city business are not covered by city insurance.

8.22 Added CDL policy for employees whose job description requires a commercial driver’s license.

9 Chapter nine has been completely revised.

11.5 Added to arbitration policy that Alaskan arbitrator selected whenever possible.

RECOMMENDATION: Repeal and reenact the City of Homer Personnel Regulations.

FISCAL IMPACT: Estimated annual savings of $50,000.