March 1, 2005
SUBJECT: Management/Confidential Leave Program and Related Salary Resolution
REPORT IN BRIEF
This report recommends two modifications to the existing Management and Confidential leave programs, and additionally recommends that the Fiscal Year 2004-2005 Salary Resolution be revised to incorporate updates and revisions that have occurred since July 20, 2004 when the Salary Resolution was adopted for the current fiscal year.
BACKGROUND
The City has previously adopted leave programs for the various categories of employees.
Management Administrative Leave
The current provisions of Management Administrative Leave currently allow for 24 hours in a payroll calendar year. This leave may be authorized for management employees after completion of six months of satisfactory employment, such leave is subject to supervisor approval and the unused leave does not carry over into the next year.
This leave was recently reviewed by the City Manager and the Executive Leadership Team in recognition that some management employees may work an extraordinary number of hours and are not compensated for this time, due to their overtime exempt status. It was also noted in the management compensation survey conducted in June 2004 that other comparable cities provide an average of 55.4 hours per year. This is more than the 24 hours available for Sunnyvale employees, this benefit level was established in 1988.
Paid Time Off (PTO)
Management and Confidential employees are under a PTO program. This program is an all inclusive leave program to be used for personal or disability (the first 80 hours of a disability) purposes. The rate of accrual is based on length of employment with the City. The current program does not provide for any cash-out of accrued leave. As part of the leave program review, the City Manager and the Executive Leadership Team considered the benefit of a cash-out option, since a cash-out option has the potential of reducing future fiscal liability.
Salary Resolution Update
The last issue to be addressed by this Report to Council is the proposed update of the annual Salary Resolution. The City Council adopts a Salary Resolution at the beginning of the new fiscal year which includes provisions from Memoranda of Understanding/Agreement scheduled to occur during the upcoming fiscal year, and which incorporates City Council actions, and amendments adopted during the preceding fiscal year.
Although it is not customary to do a major revision of this document mid-year, it is recommended to do it at this time, due to the various amendments to the Salary Resolution which have occurred subsequent to its adoption in July 2004. Updating and reissuing a consolidated Salary Resolution will ensure that current information is maintained in a single document.
EXISTING POLICY
Provisions of the Management and Confidential Leave Programs are included in the Salary Resolution in the following sections:
3.900 Management Administrative Leave
3.100 Paid Time Off Leave (PTO). Management 3.110 Paid Time Off Leave (PTO). Confidential
DISCUSSION
Management Administrative Leave
In order to recognize the extraordinary, uncompensated hours that some management employees may work, the City Manager is recommending up to an additional 36 hours annually of discretionary Management Administrative Leave be allowed. This would increase the current 24 hours to a total of 60 hours annually. This additional leave would not be granted automatically to all managers, only to those that Directors authorize, at their discretion, recognizing the contribution that these managers make to the organization. In order to qualify, the recipient’s most recent performance evaluation must reflect an overall rating of at least “meets expectations.” The provision that Management Administrative Leave may not be carried over from one year to the next remains unchanged.
Paid Time Off (PTO)
The City Manager is also recommending that management and confidential employees who are under a PTO program be allowed to cash-out up to 80 hours of PTO once at the end of each calendar year. This cash-out will be permitted with some restrictions. Cash-out will be allowed so long as the employee maintains a balance of 80 hours in his/her PTO leave bank. This minimum is required so that the employee will have paid leave time available in the event of the employee’s disability (i.e. the first 80 hours of a disability are covered by PTO). The minimum cash-out would be 8 hours.
Salary Resolution Update
The update of the Salary Resolution will incorporate three significant previously adopted amendments. These are related to the Department of Public Safety Reorganization (December 14, 2004), provisions of the Public Safety Officers Association MOU and Communications Officers Association MOU (December 7, 2005), and the adoption of the Sunnyvale Employees Association MOU (January 11, 2005). This update will provide ease access of the information in a single document.
FISCAL IMPACT
There is no fiscal impact for the City other than staff time to implement the PTO cash-out once a year. In fact, there is the potential for Benefits Fund long-term savings as a result of reducing the fiscal liability associated with accrued, but unused PTO. This is because when PTO is paid out, it is calculated at the employee’s current salary rate, when it may have been earned at a lower salary rate. To the extent that the City retains balances for a shorter period of time, it is less costly.
It may seem that the additional discretionary management administrative leave would signify an additional cost; however, since it will only granted to employees who work extraordinary hours, productivity will not be affected and the hours to be utilized have already been budgeted within each department.
PUBLIC CONTACT
Public contact was made through posting of the Council agenda on the City’s official notice bulleting board, posting of the agenda and report on the City’s web page, and the availability of the report in the Library and the City’s Clerk’s office.
ALTERNATIVES
- Approve the recommendations contained in this report regarding the Management and Confidential Leave Programs, including incorporation of related Salary Resolution provisions, and the update of the annual Salary Resolution.
- Adopt only selected recommendations contained in this report regarding the Management and Confidential Leave Programs, including the incorporation of related Salary Resolution provisions, and the update of the annual Salary Resolution
- Do not adopt the recommendations contained in this report.
RECOMMENDATION
Staff recommends Alternative #1; approve the recommendations contained in this report regarding the Management and Confidential Leave Programs, including incorporation of related Salary Resolution provisions, and update of the annual Salary Resolution.
Reviewed by:
Jane Fleenor, Interim Director, Human Resources Department
Prepared by: Myriam Castaneda, Human Resources Supervisor
Reviewed by:
Mary Bradley, Director, Finance Department
Approved by:
Amy Chan
City Manager
Attachments
A. Salary Resolution