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AGENDA ITEM REVIEW FORM |
6.A.
Regular City Council Meeting
- Meeting Date:
- 03/08/2023
- Department Head:
- Adela Cortez
- Submitted By:
- Adela Cortez, Director Human Resources, Human Resources Department
Action Requested:
Motion
ITEM:
Discussion and possible action on any and all matters regarding a one-time pay-out of COVID-19 measures for vacation hours exceeding vacation leave accrual caps set under San Luis Personnel Policies § HR4-04 effective immediately and declaring an emergency. (Adela Cortez, Director of Human Resources)
(6 votes in favor are required to pass immediately as an emergency measure per A.R. S. § 19-142)
(6 votes in favor are required to pass immediately as an emergency measure per A.R. S. § 19-142)
SUMMARY:
Due to the unforeseen COVID-19 pandemic, which limited travel outside of Yuma County and restricted travel outside the United States, City employees were unable to take a vacation during the year 2020. This resulted in employees reaching their maximum Accrual CAP for vacation and not being able to accrue any more vacation leave hours.
On June 24, 2020, City Council approved increasing Vacation Hours Accrual Caps by 80 hours per Tier (see attached document with table).
City Council also provided a time limit of two (2) months for staff to review the accumulation fo vacation and recommend a long-term solution.
Most agencies throughout the U.S. practiced in the same manner by increasing vacation accrual caps. However, most agencies returned to normal vacation accruals caps between March and December 2021.
Here at the City of San Luis, the increased Vacation Accrual Caps still remain at the higher number with the additional 80 hours per Tier. Currently, there are 54 employees whose accruals exceed their normal cap, and the cost associated with these overages is approximately $100,000.00.
In order to stabilize this program and as a permanent solution, staff is seeking approval to:
On June 24, 2020, City Council approved increasing Vacation Hours Accrual Caps by 80 hours per Tier (see attached document with table).
City Council also provided a time limit of two (2) months for staff to review the accumulation fo vacation and recommend a long-term solution.
Most agencies throughout the U.S. practiced in the same manner by increasing vacation accrual caps. However, most agencies returned to normal vacation accruals caps between March and December 2021.
Here at the City of San Luis, the increased Vacation Accrual Caps still remain at the higher number with the additional 80 hours per Tier. Currently, there are 54 employees whose accruals exceed their normal cap, and the cost associated with these overages is approximately $100,000.00.
In order to stabilize this program and as a permanent solution, staff is seeking approval to:
- Provide employees with a one-time vacation payout for the hours over the cap immediately. Payout checks can be issued by Friday, March 10, 2023.
- Enforce regular vacation accrual caps, as per HR Policy HR-4-04 (B)(2), effectively immediately.
- Authorize Finance Staff to make budget transfers up to $100,0000 between departments and Funds as needed to complete the vacation payout.
RECOMMENDATION / SUGGESTED MOTION:
I MOVE
TO APPROVE A ONE-TIME PAYOUT TO EMPLOYEES WHO HAVE ACCRUED VACATION LEAVE ABOVE THE CAP SET BY SAN LUIS PERSONNEL POLICIES § HR4-04 UNDER THE JUNE 24, 2020, COVID-19 PANDEMIC MEASURE IN AN AMOUNT NOT TO EXCEED A TOTAL EXPENDITURE OF $100,000,
TO AUTHORIZE THE FINANCE DEPARTMENT STAFF TO MAKE BUDGET TRANSFERS AS NEEDED TO COMPLETE THE VACATION PAYOUT, AND
TO FIND THAT IT IS NECESSARY FOR THE PRESERVATION OF THE PEACE, HEALTH, AND SAFETY OF THE CITY OF SAN LUIS AN EMERGENCY IS DECLARED TO EXIST, AND THE ACCRUALS UNDER THE COVID-19 PANDEMIC MEASURES SHALL END IMMEDIATELY.
TO APPROVE A ONE-TIME PAYOUT TO EMPLOYEES WHO HAVE ACCRUED VACATION LEAVE ABOVE THE CAP SET BY SAN LUIS PERSONNEL POLICIES § HR4-04 UNDER THE JUNE 24, 2020, COVID-19 PANDEMIC MEASURE IN AN AMOUNT NOT TO EXCEED A TOTAL EXPENDITURE OF $100,000,
TO AUTHORIZE THE FINANCE DEPARTMENT STAFF TO MAKE BUDGET TRANSFERS AS NEEDED TO COMPLETE THE VACATION PAYOUT, AND
TO FIND THAT IT IS NECESSARY FOR THE PRESERVATION OF THE PEACE, HEALTH, AND SAFETY OF THE CITY OF SAN LUIS AN EMERGENCY IS DECLARED TO EXIST, AND THE ACCRUALS UNDER THE COVID-19 PANDEMIC MEASURES SHALL END IMMEDIATELY.
Fiscal Impact
- IS THERE FISCAL IMPACT ASSOCIATED WITH THIS ITEM:
- Yes
- CITY/STATE/FEDERAL FUNDS:
- City Funds
- TOTAL:
- $100,000
- BUDGETED AMOUNT:
- No
- AVAILABLE AMOUNT TO TRANSFER:
- See fiscal Impact Statement
- ACCT NAME & GL#/REMAINING BALANCE BEFORE PURCHASE:
- See fiscal Impact Statement
FISCAL IMPACT STATEMENT (IF THIS IS A BUDGET TRANSFER, YOU MUST ATTACH THE BUDGET ADJUSTMENT FORM):
The City did not budget for this vacation pay out. There is budget capacity on those departments with vacancies; we are asking council to authorize the Finance staff to approve budget transfers between departments and funds up to $100,000 as necessary to complete the vacation pay out.