TO: Mayor Bien-Willner and Town Council Members
FROM: Jill Keimach, Town Manager
Jinnett Hancock, Human Resources Manager
DATE: October 8, 2020
DEPARTMENT: Town Manager
Staff Contact Jinnett Hancock, 480-348-3520
End
AGENDA TITLE:
Title
Adoption of Resolution Number 2020-31; Amendments Human Resources Handbook
Body
RECOMMENDATION:
Recommendation
Adopt Resolution Number 2020-31; Amending the Human Resources Handbook
Background
SUMMARY STATEMENT:
The current Human Resources Policies and Procedures Handbook was adopted on February 26, 1998. Since adoption, policies have been changed over the years and approved by the Town Council individually as laws and Town operations have changed. Recently, a number of federal COVID-19 related reimbursement and grant programs, such as the CARES Act, have been introduced by the federal government that are beneficial to the Town. In order to qualify to receive reimbursement and grants, the Town is required to have up to date policies and procedures that reflect existing practices and provide evidence of approval from the proper authority. To ensure compliance, the Town will be required to undergo a federal single audit.
In addition, the Police Department is currently seeking accreditation through the Arizona Law Enforcement Accreditation Program (ALEAP). As we began going through the Police Department’s accreditation process and further reviewing the Handbook for compliance with state and federal employment laws, it became evident that the Town’s Employee Handbook requires numerous updates. Also apparent is the need to add and update policies to reflect current operations, work environment changes, revise outdated language and to clarify certain existing policies.
Over the next several months, Human Resources will partner with an outside employment law attorney to ensure all the Town’s policies are compliant with federal, state and local laws. Once completed, recommendations will be made to the Town Council to introduce, revise or eliminate policies and procedures identified. Prior to beginning the project, we are requesting an amendment to policy Section 204 - Revisions to Human Resource Policies & Procedures Handbook. Currently any changes to the Handbook, even those required by law, must be approved by the Town Council. To complete this project as efficiently and as expediently as possible, we are requesting an amendment that allows the Town Manager the authority to approve Handbook revisions to policies and procedures related to operations and proper administration of employee’s affairs, changes in the state, federal and local laws and to address changes in the work environment. Under the amendment, the Town Council would continue to retain sole authority in approval of all Handbook policies dealing with employee compensation or policies with any financial implications (positive or negative) to the Town. The Handbook Managerial Amendments approved by the Town Manager will be transmitted to the Town Council within two (2) days prior to any Handbook changes taking effect. Amendments will go into effect within seven (7) calendar days, unless three (3) Town Council members submit a written request to appeal the Manager’s decision. If that occurs, then a majority vote of Council members will determine if the Handbook amendment meets the definition of a Managerial Amendment. The Employee Handbook will be considered on every odd numbered years starting in June 2021 as part of the Budget process and Council adoption of all financial policies. See Attachment A for the current policy and the proposed amendment.
Although work to bring the Handbook up to date will occur over the next several months, we’ve identified a current practice, Section 910 E, Holiday Pay for Dispatchers, Officers and Supervisors assigned to Patrol, that requires Town Council approval now. Although approved by a former Town Manager in 2018, an initial review of the Handbook found that the policy should have been approved by the Town Council not the Town Manager at that time. The amendment to Section 204 above will prevent this from happening in the future. The policy was put in place after an officer submitted a suggestion in the Police Chief’s suggestion box to recognize officers and dispatchers who are required to work on holidays and are unable to spend time with their families and to provide additional paid leave for newer officers. Prior to the change, sworn officers and dispatchers received an additional 8 hours of straight time for Town holidays. In 2018, the policy changed to allow the 8 hours of Holiday Pay to be paid or banked as holiday leave hours (to be used at a later date) at the over-time rate (1.5) if the officer or dispatcher is required to work on the actual holiday. See Attachment B for the policy prior to 2018 and the current practice. The proposed Holiday Pay amendment is fairly common among Arizona public sector employers. See Attachment C for a list of how other Arizona municipalities administer Holiday Pay. The additional cost to the Town is approximately $13,000 - $15,000 annually.
We have also identified a current policy in the Handbook that the Town does not currently practice. Section 809 - Supervisory Differential, requires supervisors to be paid at least 5% above their highest paid subordinate. See Attachment D. This policy became problematic, particularly in the Police Department, because salary ranges between ranks overlap. In many instances, when short tenured officers were promoted to supervisory positions over long tenured officers, the result would have been promotional pay increases of $10,000 or more. The policy was also deemed not fair in that the Sergeant supervising the highest the paid Corporal could become the highest paid Sergeant without regard to years of service, experience or performance. For these reasons, a former Town Manager suspended the policy. We are recommending the elimination of this policy to prevent unfairness and excessive pay increases.
ATTACHMENT(S):
1. Attachment A - SECTION 204
2. Attachment B- SECTION 910(E)
3. Attachment C - Municipal Holiday Pay Comparison
4. Attachment D - SECTION 809
5. Attachment E - Resolution 2020-31