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ITEM 4 |
City Council Memorandum City Clerk's Office Memo No. CM21-79
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Date: |
April 8, 2021 |
To: |
Mayor and Council |
Thru: |
Joshua H. Wright, Acting City Manager |
From: |
Erica Barba, Senior Management Analyst |
Subject: |
FY 2020-21 One-time Exceptional Performance Awards for Employees |
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Proposed Motion: |
Move City Council approve a one-time exceptional performance award of $3,000 to each full-time employee and $1,500 to each part-time employee, employed as of December 31, 2020, and remaining employed through March 27, 2021, for an estimated cost of $5,530,000 across all Funds; and $3,060,000 in Fund Contingency Transfers to only be used should vacancy savings appropriation not be sufficient in a specific Fund/Cost Center combination, including General Fund of $2,800,000, to various Cost Centers within General Fund, Special Revenue Funds (i.e. Grant-217, Community Development Block Grant (CDBG)-219, Public Housing Authority (PHA)-224, 227, 230, 232, 233) and Self Insurance Funds (i.e. Workers Compensation-736, Insured Liability-737, Uninsured Liability-738, Short Term Disability-739, and Medical-741); Water Fund 605 of $200,000; and Solid Waste Fund 625 of $60,000. |
Background/Discussion |
In FY 2020-21, based on the potential impacts of the COVID-19 pandemic, a decision was made to hold ongoing market increases for general employees until the City was able to fully realize the impact the pandemic would have on City revenues and operations. As has been reported through budget briefings, the City of Chandler has performed better than the revised budget during this unprecedented time. Additionally, vacant City positions were held for several months as part of the budget considerations, which placed additional responsibilities on employees. In a typical year, the City anticipates vacancy savings of 1.5% of total personnel costs. During FY 2020-21, Chandler is estimating vacancy savings of over 3.0% ($5M) in General Fund or over 4% ($8M) in all funds due to the high number of vacant positions. In addition to the pandemic, other challenges were faced by the City and its employees. Team Chandler rose to the occasion and maintained a high level of service to Chandler residents while keeping City operations and services functioning. In light of City employees' outstanding performance over the past year, I am recommending employees who were employed as of December 31, 2020, and who have remained employed through March 27, 2021, receive a one-time exceptional performance award to be included in the April 15, 2021, regular pay check. This award includes 1,522 full-time employees at $3,000 each and 29 regular part-time employees at $1,500 each. The total cost, with employer benefits, is estimated to be $5,530,000 in one-time funding across all funds. Although vacancy savings exists from budgeted positions, Fund Contingency Transfers totaling $3,060,000 are needed in various funds to ensure adequate appropriation in the cost centers where payments will be applied. If approved, a City-wide communication will be provided prior to the payment with additional details. |