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HomeMy WebLinkAboutOrdinance No. 3450-2025K P N�� CITY OF KENAI ORDINANCE NO.3450-2025 Sponsored by: Administration AN ORDINANCE AMENDING SECTIONS OF KENAI MUNICIPAL CODE TITLE 23 - PERSONNEL REGULATIONS, SECTIONS 23.05.070 - DEFINITIONS, 23.25.080 - PROMOTION, 23.30.030 - PROBATIONARY PERIOD FOR EMPLOYEES IN THE CLASSIFIED SERVICE, AND 23.55.020 - COMPENSATION STRUCTURE BY GRADE FOR EMPLOYEES IN THE CLASSIFIED SERVICE, TO ENSURE A CONSISTENT APPROACH TO PAY ADJUSTMENTS FOR CITY EMPLOYEES. WHEREAS, Ordinance 3418-2024 adopted the annual budget, salary schedule, employee classification plan and authorized staffing table for the fiscal year commencing July 1, 2024 and ending June 30, 2025; and, WHEREAS, Ordinance 3419-2024 amended sections of the personnel regulations related to the compensation structure by grade, creating two additional double -letter steps (DD-EE) in the Salary Schedule, increasing the value of the double -letter steps from 2.5% to 4.25% of base, and making amendments to the probationary period; and, WHEREAS, pursuant to KMC 23.15.010, the City Manager prepares and recommends revisions and amendments to the personnel regulations as deemed necessary; and, WHEREAS, clearly defining an employee's anniversary date based on the date of hire will simplify administrative processes and ensure a consistent approach for determining an employee's years of service, eligibility for annual leave, and pay increases; and, WHEREAS, to ensure uniform compensation for promotions regardless of an employee's current position in the step progression, it is necessary to amend the promotion policy to specify an increase of not less than four percent (4%) rather than a minimum of one pay step; and, WHEREAS, to ensure a consistent approach to compensation and streamline administrative practices, the one-step pay increase employees currently receive at the end of a probationary period will be removed, and employees will instead receive their step increase on their anniversary date; and, WHEREAS, these amendments to the probationary period and promotion policies are necessary to provide clarity, fairness, and consistency in pay adjustments for City employees and are in the best interests of the City. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, AS FOLLOWS: Section 1. Amendment of Section 23.05.070 of the Kenai Municipal Code: That Kenai Municipal Code, Section 23.05.070 - Definitions, is hereby amended as follows: 23.05.070 Definitions. As used in this title, the following terms have the meanings set forth in this section: "Anniversary date" means the first of the month in which the employee was hired. New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. 3450-2025 Page 2 of 4 "City Attorney" means an employee appointed by and directly responsible to the City Council who is the chief legal advisor to the Council and all other officers, departments, and agencies of the City government in matters relating to their official powers and duties. "City Clerk" means an officer and employee of the City appointed by and directly responsible to the City Council for an indefinite period of time who serves as clerical officer of the Council. "City Manager" means an officer and employee of the City directly responsible to the City Council who is authorized and directed to exercise the powers and fulfill the duties as specified in the Charter and Municipal Code of the City of Kenai. "Classified service" means all paid employees not in the unclassified or department head service. "Department" means the smallest functional budgetary unit of the City government established by the City Council. "Department Head Service" The department head service includes employees who are directly responsible to the City Manager for the administration of one (1) or more departments and who have been hired or completed a probationary period after June 1, 2018. Employees responsible to the City Manager for the administration of one (1) or more departments who have been hired and completed a probationary period before June 1, 2018, may enter the department head service by written request to the City Manager. "Full -Time" Employees regularly scheduled to work forty (40) hours per week (except certain Fire Department employees who work an average of fifty-six (56) hours per week) are considered "full time." "Grievance" means an employee's oral or written expression of dissatisfaction with some aspect of employment, a management decision affecting the employee, or an alleged violation of the employee's rights for the purpose of attempting to gain an adjustment of said cause of dissatisfaction. "Part-time" means employees regularly scheduled to work less than forty (40) hours per week. "Probationary Period" An employee appointed to a position in the classified service must serve a probationary period, which is normally twelve (12) months. This period can be extended up to, but no longer than, eighteen (18) months. "Program or project employee" means an employee who is hired for a temporary period that may exceed six (6) months and with a prior written agreement that employment in that position will continue for at most the duration of a specified program or project that is not a regular and continuing function of a department or the City and that has an established probable date of termination. "Promotion" means an advancement of an employee from one (1) job classification to a higher job classification within the same department. "Public safety employee" means a person employed in the Police, Fire, or Communications Department. "Regular" means employees who have completed the probationary period. They may be assigned to work a full-time or part-time schedule. "Seasonal" means employees who perform seasonal work for a preestablished period of not more than six (6) months during a twelve (12) month period. Seasonal employees may be assigned a full- time or part-time schedule and are eligible for public employee retirement benefits but are ineligible for other benefits, including holiday pay. Seasonal employees who have completed the probationary period may return to the seasonal position each season subject to performance evaluations, general New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. 3450-2025 Page 3 of 4 conduct and discipline, personnel rules and policies of the City, layoff, reorganization and other business needs of the City. "Supervisor" means an employee who is responsible to a higher divisional or department level of authority and who directs the work of others. "Temporary employee" means an employee who is hired for a preestablished period, usually during peak workloads or for vacation relief and for not more than six (6) months. The employee may be assigned to work a full-time or part-time schedule and is ineligible for benefits, including holiday pay. "Transfer' means the movement of an employee from one (1) department to another department, regardless of job classification. "Unclassified Service" The unclassified service includes all elected officials, City Manager, City Attorney, City Clerk, seasonal, temporary employees, and temporary program or project employees. Members of boards, committees, commissions, volunteers, contractors, and consultants are not employees. Section 2. Amendment of Section 23.25.080 of Kenai Municipal Code: That Kenai Municipal Code, Section 23.25.080 — Promotion, is hereby amended as follows: 23.26.080 Promotion When an employee in the classified service is promoted from one class to another having a higher pay range, [HE OR SHE SHALL RECEIVE AN INCREASE OF NOT LESS THAN ONE (1) PAY STEP FROM HIS OR HER FORMER POSITION.] the employee will receive an increase of not less than four percent (4%) of their former position and will be placed at the appropriate step in the new pay range. Section 3. Amendment of Section 23.30.030 of Kenai Municipal Code: That Kenai Municipal Code, Section 23.30.030 — Probationary period for employees in the classified service, is hereby amended as follows: 23.30.030 Probationary Period for Employees in the Classified Service. (a) All original appointments for employees in the classified service including those that result from transfers shall be tentative and subject to a probationary period of not less than twelve (12) months. Promotional appointment probationary period shall, for all employees in the classified service, be not less than twelve (12) months. (b) In cases where the responsibilities of a position in the classified service are such that a longer period is necessary to demonstrate an employee's qualifications, the probationary period may be extended; however, no probationary period shall be extended beyond eighteen (18) months. The employee shall be notified in writing of any extension and the reasons therefor. (c) Upon completion of the probationary period, employees in the classified service shall be considered as having satisfactorily demonstrated qualifications for the position, shall gain regular status, [ONE (1) STEP IN PAY RAISE,] and shall be so informed through his or her supervisor. [THE EMPLOYEE'S ANNIVERSARY DATE SHALL BE THE FIRST OF THE MONTH IN WHICH THE EMPLOYEE'S ORIGINAL PROBATION ENDS. EMPLOYEES WHO HAVE GAINED REGULAR STATUS ATTHE EFFECTIVE DATE OF THE ORDINANCE CODIFIED IN THIS SECTION SHALL HAVE THEIR ANNIVERSARY DATES CHANGED TO THE FIRST OF THE MONTH IN WHICH THE EMPLOYEE'S PRESENT ANNIVERSARY DATE FALLS.] (d) During the probationary period, a new employee hired in the classified service may be terminated at any time without advance notice, without cause, and without appeal. New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. 3450-2025 Page 4 of 4 (e) In the case of promotional appointments, the promoted employee may be demoted at any time during the probationary period without appeal; provided, that the probationary employee be reinstated in the class designation from which he or she was promoted, even though this necessitates the layoff of the employee occupying the position. Section 4. Amendment of Section 23.55.020 of Kenai Municipal Code: That Kenai Municipal Code, Section 23.55.020 - Compensation structure by grade for employees in the classified service, is hereby amended as follows: 23.65.020 Compensation Structure by Grade for Employees in the Classified Service. (a) Compensation structure by grade for employees in the classified service is hereby established in accordance with the most recent salary schedule effective upon enactment by City Council of the ordinance adopting a budget for the following fiscal year or by resolution. (b) [ON COMPLETION OF THE PROBATIONARY PERIOD, EACH EMPLOYEE] Employees in the classified service shall be [ADVANCED ONE (1) STEP] eligible for a step increase on their first anniversary date. At succeeding anniversary dates, subject to an evaluation of "Meets Expectations" or better, the employee may be advanced a step increment subject to City Manager approval effective on the first day of the payroll period following the date the increase occurs. The time period normally between Steps B to C to D to E to F is one (1) year. The time normally between Steps F to AA to BB to CC to DD to EE is two (2) years. Section 5. 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 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 6. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect 30 days after enactment. ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 19T" DAY OF FEBRUARY, 2025. ATTEST: n C, City Clerk Brian Gabriel Sr., Mayor Introduced Enacted: Effective: New Text Underlined; [DELETED TEXT BRACKETED] February 5, 2025 February 19, 2025 March 21, 2025 K � NAI City of Kenai 1 210 Fidalgo Ave, Kenai, AK 99611-7794 1907.283.7535 ( www.kenai.city MEMORANDUM TO: Mayor Gabriel and Council Members THROUGH: Terry Eubank, City Manager FROM: Stephanie Randall, Human Resources Director DATE: January 23, 2025 SUBJECT: Ordinance No. 3450-2025 - Amending Sections of Kenai Municipal Code Title 23 - Personnel Regulations, Sections 23.05.070 - Definitions, 23.26.080 - Promotion, 23.30.030 - Probationary Period for Employees in the Classified Service, and 23.55.020 - Compensation Structure by Grade for Employees in the Classified Service, to Ensure a Consistent Approach to Pay Adjustments for City Employees. This memo is in support of the proposed ordinance amending sections of Kenai Municipal Code Title 23 — Personnel Regulations. This ordinance will streamline administrative processes and ensure a consistent and equitable approach to pay adjustments for City employees. The background for these proposed amendments is based on Ordinances 3418-2024 and 3419- 2024, which introduced changes to the pay schedule, including additional double -letter steps and a standard 12-month probationary period for all employees, up from six months for non-public safety employees. The updated pay schedule expanded from a 9-step to an 11-step model. Steps A-F remained annual steps increasing at 2.5% of base, while double -letter steps (AA-EE) remained biennial but increased from 2.5% to 4.25% of base. Due to the change in increases between steps, promotions for employees became disproportionate when employees later in their step progression promoted and received a greater increase in pay than those who promoted earlier in their step progression. The proposed amendments clarify how promotion and probation are handled to improve administrative efficiency and ensure fair and consistent practices for City employees who are promoted, regardless of where they are in their step progression. Below is a sectional analysis for the proposed code amendments included in the Ordinance. Section 1. This section amends KMC 23.05.070 to add a definition of "Anniversary Date," as the first of the month in which the employee was hired, clearly defining an employee's anniversary date as their date of hire to simplify calculations for years of service, annual leave eligibility, and pay increases. Section 2. This section amends KMC 23.25.080 to set a uniform amount of increase for employee pay following a promotion, ensuring uniformity across all step progressions. Section 3. This section amends KMC 23.30.030 (c) to eliminate the step increase granted upon completion of the probationary period, instead aligning pay increases with the employee anniversary date. Section 4. This section amends 23.55.020 (b) and will make employees eligible for their next step increase based on where they are in the steps (annually in single -letter steps or every other year in double letter steps). These amendments were developed in collaboration with Administration and the City Attorney to streamline administrative processes and support a consistent approach to pay adjustments. It is important to note that, if enacted, the amendments will not apply to employees currently serving a probationary period. The revised policies will only affect future hires and promotions. Thank you for your consideration. Page 2 of 2 The City of Kenai I www.kenai.city