Discuss Modifying the Authority of City Administrator

Purpose:  The purpose of this case is to discuss the authority of the City Administrator.  Discussion will include adding authority, which in turn will streamline Human Resources processes and result in less Committee meetings. This will complete two of the initiatives in the City's three-year Strategic Action Plan.

Background:  In the beginning of 2013, Council and staff held several strategic planning sessions, facilitated by Anita Duckor of Duckor & Associates.  This case and discussion surrounds Strategic Imperative IV:  An Effective Organization and is intended to:  Maintain a highly functional staff, citizen volunteers, and elected officials and governance structure that meet the ever-changing, increasing needs of the organization. 

One of the strategic initiatives includes enhancing governance structure and lists the tactic as follows:  To modify the authority of the City Administrator.  The key outcomes of this initiative would be centered responsibility and accountability of the City's performance with one person; and achieved significant savings by reducing the number of Personnel Committee meetings and Council agenda items, as well as minute taking fees.  

Another strategic initiative is streamlining internal processes.  The tactic - to determine Personnel Committee related work processes that need to be redesigned.  The key outcomes of this initiative would be enhanced Human Resources processes, achieved time savings of Mayor/City Council and an achieved percentage of cost savings with regard to staff time and minute taking fees.

Note:  Discussion of eliminating the Personnel Committee and the Finance Committee will occur during the Council Organization work session topic. 

This case will address the following possible streamlined work processes:

Recruitment
With regard to filling vacant positions, the Personnel Policy language states:  "For an existing position, the human resources manager may post a job opening when a position is vacated and then bring the information to the City Council at the next scheduled meeting."    However, the actual course of action has been that staff brings a request to recruit for a position to the Personnel Committee and then City Council, which if approved, is followed by the staff recruitment process.  Following that process, staff then brings the request to hire to  the Personnel Committee and then Council to wrap up the hiring process.  The resolution includes name, position, salary, etc.

Staff is requesting Council to allow staff to return to the Personnel Policy language (in practice), thereby granting more authority back to the City Administrator as follows: 

Any position or position changes that are in the budget would not be required to go back to the City Council for authorization to recruit; again, staff would still bring a resolution containing all the hire information to the Council via the Consent Agenda.  This process would eliminate two Personnel Committee meetings (request to recruit and request to hire) as well as one additional Council case (request to recruit). As stated above, a key outcome is that this not only eliminates meetings for Council, it also saves in staff time, and leaves a more understandable record trail of what was done and when. 

Reclassifications/Promotions
Staff suggests the Council consider revising the current policy (Administration of the Classification Plan) which states "The City Administrator may establish a new class, create a new position within a class or reclassify a position upon approval by the City Council."  Staff suggests that if  the reclassification or promotion can be accomplished within the approved budget that the City Administrator be granted authority to act in this regard.

Extra Duty Pay / Interim Pay
The City does not have a policy relating to extra duty pay or interim pay.   However, from time to time there have been situations that have occurred that could have been handled more efficiently had the City Administrator had the authority to grant short-term extra duty pay or interim pay without Council authorization. Staff suggests granting the City Administrator the authority to authorize extra duty pay and interim pay -- subject to available funding within the budget.

Market Rate Pay
With regard to Market Rate Pay, the Personnel Policy language states: "Occasionally positions within the City may fall behind in pay with regard to the market value.  When this becomes apparent, the Human Resources Manager will make a recommendation for the appropriate salary adjustment to the City Administrator.  Upon approval by the City Council, the employee in said position will receive a salary range adjustment.  Staff suggests granting the City Administrator the authority to authorize Market Rate Pay adjustments without City Council approval -- subject to available funding and the budget.   The City Council may wish to limit any increases to a maximum of  five percent.

Pay Plan - Annual Review, Amendments and Modification
With regard to the Pay Plan, the Personnel Policy language states:  "At least once each year prior to the beginning of the following fiscal year, the City Council shall review the pay plan, make desired changes and approve all pay ranges for the following year. .... Any amendment to the pay plan shall be based on changes in the responsibility or the duties of the position, recruiting experience, rates of pay and benefits in the public and private sector, the City’s financial status, general economic conditions, federal or state law, including the Minnesota Pay Equity law, or other pertinent factors warranting such action."   Staff suggests granting the City Administrator the authority to amend and modify the plan without City Council authorization-- subject to available funding and the approved budget.  

End of Probation
The current Personnel Policy language states:  "Immediately prior to the expiration of the probationary period, the City Administrator shall recommend to the City Council in writing  whether or not the services of the employee have been satisfactory and whether or not employment should be continued.  At the discretion of the City Administrator, an employee’s probationary period may be extended for 90 calendar days for less than satisfactory performance."   The practice has been to bring a case to the Personnel Committee and then to the City Council to end the employees probation.   Since this practice does not change anything with regard to the hiring of the employee it is not an issue of taking hiring authority away from the Council; therefore, staff suggests granting the City Administrator the authority to end employee probationary periods. 

Inclement Weather Policy
With regard to the Inclement Weather Policy, the Personnel Policy language states:  "On occasions when the severity of the weather may cause City offices to be closed, the City Administrator will make a determination after conferring with the Mayor and, in the Mayor's absence, the Mayor pro-tem, as to whether the offices will be closed.  The City Administrator will then contact WCCO Radio (830 AM) in order to provide a broadcast of the closure of our facility.  Employees will be alerted that they are to listen to WCCO Radio.  If it is broadcast that City offices are closed prior to the shift start time, then the employee will be paid as if it were a regular workday.  If, however, the office is not officially closed, staff will be instructed to take vacation time or compensatory time off for any absence from work that occurs.  If the office is officially closed after the start of the shift, staff will receive their regular pay for the remainder of the shift.  Compensatory time off or vacation will be taken for time absent from work prior to the official closure.  This policy will apply to office employees only and does not include Public Works or Public Safety (fire and police) employees.  In circumstances where the City Administrator is out of town, the Assistant City Administrator will provide the decision on whether or not to keep City offices open.   Staff suggests granting the City Administrator or Acting City Administrator the authority to make this decision.  Staff also suggests removing the reference to WCCO Radio and to add language that takes into account the Anoka Hennepin School District's course of action.  

Overview of State Statute and City Charter Rules
State Statutes states that duties delegated to an administrator should be ministerial.  The Council cannot delegate any administrative power that calls for judgment and discretion, such as the authority to enter into a contract, or hiring and firing City employees.  Allowing the City Administrator the authority to initiate recruitment, etc. is not granting authority to hire.  The actual formal hire will be done by Council as approved by resolution; however, the process itself will be done in less time and less steps. 

The City's Charter (Chapter 6, Section 6.3) states that the City Administrator shall be the chief administrative officer for the Council.  The Council shall establish by resolution, the powers, duties and reporting requirements of the City Administrator.  It was first thought that the Charter may have to be amended to grant the City Administrator more authority; however, it appears the City Council has the power to delegate duties to the City Administrator by resolution.  City Council may direct that a resolution be drafted delegating certain duties to the City Administrator which could be adopted or reviewed yearly, as Council sees fit.  It may also be as simple as directing that internal administrative policies be amended.  

Lastly, all changes to the City Administrators' authority would be reflected in the Personnel Policy when the Personnel Policy is brought forward to the City Council to formally adopt the updated policy. 

Approximately 45 minutes.

No funding necessary.

City Administrator
Human Resources Manager
City Clerk

Staff is looking for direction from the City Council on proceeding with added authority for the City Administrator, most specifically with regard to recruiting for personnel and streamlining the above mentioned Human Resources work-processes.