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HomeMy WebLinkAboutOrdinance No. 2984-2017CITY OF KENAI ORDINANCE NO. 2984-2017 Sponsored by: Administration AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING KENAI MUNICIPAL CODE SECTION 23.55.060 — STAND-BY PAY, TO AMEND THE RATE OF STAND- BY PAY AND INCREASING WATER & SEWER FUND ESTIMATED REVENUES AND APPROPRIATIONS TO PROVIDE STANDBY PAY FOR CERTIFIED WATER AND WASTEWATER OPERATORS THAT WAS NOT INCLUDED IN THE FY2018 BUDGET. WHEREAS, changes to the State of Alaska Water and Wastewater Operator Certification and Training regulations, 18 AAC 74, became effective on November 26, 2016 and included a requirement for a certified operator to be either onsite at the system or available by radio or telephone, and able to be onsite within one hour at all times; and, WHEREAS, the City does not currently utilize stand-by pay as provided for in the City's Code of Ordinances or require certified water and sewer employees to be on standby; however, employees are required to respond to emergency call outs when available and receive "call -out" pay— a minimum of two hours pay at overtime rates; and, WHEREAS, in order to comply with 18 AAC 74, the City must have a certified operator available to be onsite within one hour; and, WHEREAS, under the FLSA and due to the constraints placed on the employee's freedom, the City must compensate employees who are placed on standby duty; and, WHEREAS, amending the KMC definition of stand-by pay and paying employees placed on stand-by at a rate of 5% computed against Step A of the employee's pay range for each hour in stand-by status will allow the City to comply with DEC regulations at a rate comparable to other municipalities; and, WHEREAS, the adopted FY2018 Budget did not include funds for standby pay, and an increase in the Water & Sewer Fund is necessary to provide for the cost of stand-by pay at the above rate for the remainder of FY2018; and, WHEREAS, providing sufficient funds for stand-by pay for certified water and sewer operators and amending the Kenai Municipal Code will bring the City into compliance with DEC regulations, provide flexibility for staffing, and is in the best interest of the City. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: Section 1. Form: That this is code ordinance. Section 2. _Amendment of Section 23.55.060 of the Kenai Municipal Code: That Kenai Municipal Code, Section 14.20.151 — Stand-by Pay, is amended as follows: New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. 2984-2017 Page 2 of 3 23.55.060 Stand-by pay. (a) Where employees are [REGULARLY] placed on a stand-by status [ON A DAY WHEN THEY ARE SCHEDULED TO BE OFF DUTY], they shall be entitled to a 5% rate of Pav computed against Step A of the pay range of the employee [TWO (2) HOURS PAY] for [SUCH STAND-BY STATUS] each hour in stand-by status. (b) To be eligible for stand-by pay, an employee must formally be placed on stand-by status, with the approval of the City Manager, and the proper documentation indicating such approval placed in the employee's personnel records. An employee in stand-by status must be available for call -outs [AND],, must be in a location whereby the responsible City personnel can communicate with him or her[.], and comply with any other requirements of the approved stand-by Pay. Section 4. That estimated revenues and appropriations be increased as follows: Water & Sewer Fund Increase Estimated Revenues - Appropriation of Retained Earnings $24,156 Increase Appropriations: $4,633 Water: 250 Wages $4,633 Overtime 250 Medicare 71 PERS 1,075 Workers' Compensation 288 Total Water $6117 Sewer Wages $4,633 Overtime 250 Medicare 71 PERS 1,075 Workers' Compensation 288 Total Sewer $6,317 Wastewater Treatment Plant Wages $8,408 Overtime 500 Medicare 129 PERS 1,960 Workers' Compensation 525 Total Water $11,522 Total Water & Sewer Fund $24,156 Section 3. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. 2984-2017 Page 2 of 3 judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application. Section 4. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect 30 days after adoption. ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 4'" day of October, 2017 ATTEST: (:]�� " I I " J ie Heinz, City Clerk Approved by Finance Introduced: September 6, 2017 Enacted: October 4, 2017 Effective: November 3, 2017 New Text Underlined; [DELETED TEXT BRACKETED] IM MEMORANDUM "Vllaye with a Past, C# with a Future 210 Fidalgo Avenue, Kenai, Alaska 99611-7794 Telephone: 907-283-7535 / Fax: 907-283-3014 www.kenai.city TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager F. c::> FROM: Christine Cunningham, Assistant to City Manager/ HR/'"-" DATE: August 30, 2017 SUBJECT: Ordinance No. 2984-2017 — Stand-by Pay The purpose of this memo is to provide support for Ordinance No. 2984-2017, amending Kenai Municipal Code (KMC) section 23.55.060, Stand-by pay. Changes to the State of Alaska Water and Wastewater Operator Certification and Training regulations, 18 AAC 74, became effective November 26, 2016. The amended regulations specify that a large water treatment, water distribution, wastewater treatment, and wastewater collection system must have an operator certified at a level equal to or greater than the classification of the system, either onsite at the system or available by radio or telephone, and able to be onsite within one hour at all times. At this time, the City employs seven full-time certified operators in the water and sewer and wastewater divisions of the Public Works Department. These employees are required to respond to emergency call outs when available. However, certified operators have not been placed on a stand-by status in the past. If an employee is required to remain on call while not scheduled to work, whether or not the time should be compensated under the Fair Labor Standards Act (FLSA) depends on the constraints on the employee's freedom. For certified utility operators, being on call means being able to be available by radio or telephone and able to be on-site at the system within one hour at all times. The employee's activities are restricted so that during the time the employee is on stand-by, he or she is prohibited from consuming alcohol or engaging in other activities, such as travel, that would inhibit the employee's immediate availability. The City's Code currently provides for stand-by pay which would entitle an employee placed on stand-by status to two hours of pay. A recent salary and benefits comparison for public utility positions in which other cities provided information on their stand-by or on-call rates show most cities surveyed pay an hourly rate ranging between $1.50 — 3.50 per hour. The 5% rate of pay computed against Step A of the pay range of the employee for each hour in stand-by status proposed in Ordinance No. 2984-2017, averages to approximately $1.60 per hour. The benefit of setting the rate at a percent of the employee's base pay is that it allows the rate to automatically adjust over time with amendments to the City's salary schedule, such as cost -of -living adjustments (COLAs) or re -classifications. Amending the KMC definition of stand-by pay and paying employees placed on stand-by at a rate of 5% computed against Step A of the employee's pay range for each hour in stand-by status will allow the City to comply with Department of Environmental Conservation (DEC) regulations at a rate comparable to other municipalities and with the flexibility to automatically adjust without requiring subsequent changes to the City's Code. Employees who respond to emergency call outs would still be eligible to receive "call -out" pay — a minimum of two hours pay at overtime rates, as provided in the City's Code. The most recent update to the 2016 18 AAC 74 Regulation Changes was published on April 18, 2017, and a recommendation for an amendment to the KMC section 23.55.060 - Stand-by pay, was not completed in advance of the deadline to submit for inclusion in the FY18 Budget, and compensation to certified utility operators for stand-by pay was not included in the FYI Budget.