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HomeMy WebLinkAboutOrdinance No. 2693-2013Suggested by: Administration CITY OF KENAI ORDINANCE NO. 2693 -2013 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING THE KENAI MUNICIPAL CODE SECTIONS 23.25.050, PAY DAY, 23.25.060, OVERTIME, AND 23.40.030, ANNUAL LEAVE, TO PROVIDE FOR A BI- WEEKLY PAY PERIOD INSTEAD OF A MONTHLY PAY PERIOD. WHEREAS, pursuant to KMC 23.25.050, Pay day, City employees are currently paid based on a monthly pay period; and, WHEREAS, changing to a bi- weekly pay period will increase administrative efficiency in processing payroll, reduce the potential for payroll errors, simplify the process of completing timesheets and increase the number of payments to employees; and, WHEREAS, KMC 23.25.060, Overtime, must additionally be amended to accommodate a bi- weekly pay period by deleting subsection (e) which only pertains to processing a monthly pay period; and, WHEREAS, KMC 23.40.030, Annual leave, also must be amended to accommodate a bi- weekly pay period even though the actual benefits will remain the same. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1. Form: That this is a Code ordinance. Section 2. Amendment of Section 23.25.050 of the Kenai Municipal Code: That Kenai Municipal Code, Section 23.25.050 Pay day, is hereby amended as follows: 23.25.050 Pay day. The pay period is bi- weekly. Employees shall be paid every other Friday (pay day). [MONTHLY, BUT ON THE FIFTEENTH OF EACH MONTH, A PAY ADVANCE IS ISSUED ACCORDING TO A PRO RATA DRAW OR SHARE OF NET ENTITLEMENT FOR THE MONTHLY PERIOD.] If the pay day [FIFTEENTH OR THE LAST DAY OF THE MONTH] falls on a [SATURDAY, SUNDAY, OR] holiday, employees shall be paid on the last working day preceding the pay day [DATE]. [TEMPORARY EMPLOYEES AND THOSE WORKING LESS THAN FIFTEEN (15) HOURS PER WEEK ARE PAID ON THE LAST WORKING DAY OF THE MONTH AND RECEIVE NO ADVANCE ON THE FIFTEENTH.] New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. 2693 -2013 Page 2 of 5 Section 3. Amendment of Section 23.25.060 of the Kenai Municipal Code: That Kenai Municipal Code, Section 23.25.060 Overtime, is hereby amended by deleting subsection (e) as follows: (a) Department heads and supervisors shall assign to each employee regular work duties and responsibilities which can normally be accomplished within the established work day and work week. (b) When employees are required to work overtime, department heads shall authorize compensatory time off or overtime pay. Determination to grant overtime pay or compensatory time off shall rest with the department head, City Manager, or acting department heads, who shall give due consideration to desires of the employee, to budgetary controls and to the provisions of subsection (c) of this section. Rates for overtime (in addition to regular compensation based upon salary schedules) shall be based upon the employee's regular rate of pay as follows: (1) General government employees (excluding sewer treatment plant and temporary employees): Regular Pay Times Regular Work 1 1/2 Saturday 1 1/2 Sunday 2 Holiday 2 1/2 (2) Temporary employees: Regular Pay Times Regular Work 1 1/2 Saturday 1 1/2 Sunday 1 1/2 Holiday 1 1/2 (3) General government and temporary employees must be in a paid status for forty (40) hours in the work week before overtime compensation will be paid. (4) Public safety and sewer treatment plant employees: Regular Pay Times Regular Work Day 1 1/2 Saturday 1 1/2 Sunday 2 Holiday (5) Public safety and sewer treatment plant employees must be in a paid status for their normal work week, as follows, before overtime compensation will be paid: New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. 2693 -2013 Page 3 of 5 Police 40 hours Fire 56 hours Communications 40 hours Sewer treatment plant 40 hours However, overtime may be paid as required by the Fair Labor Standards Act, recognizing that an employee's salary is compensation for the normal shifts specified in this Title. (c) Compensatory time accumulation shall not exceed the total number of hours equal to one (1) regular shift of the employee. Once this maximum accumulation has been reached, all overtime compensation earned by the employee shall automatically be paid in cash. (d) Supervisory and professional positions of the classified and exempt services considered to be exempt from the provisions of the Fair Labor Standards Act shall not be bound to a work week of any set number of hours. The individuals in these positions are expected to work as many hours as the responsibilities of their positions require. As a result, individuals in these positions shall not be paid overtime or allowed to accrue compensatory time. (e) [THE FINANCE DEPARTMENT SHALL ASK EMPLOYEES TO SUBMIT MONTHLY TIME SHEETS ON A DATE NEAR ENOUGH TO THE END OF THE MONTH TO ALLOW FOR PROCESSING OF PAY CHECKS BY THE LAST PAY DAY OF THE MONTH. OVERTIME APPEARING ON SUCH TIME SHEETS SHALL BE PAID ON THE LAST PAY DAY OF THE MONTH. OVERTIME WORKED BETWEEN THE SUBMISSION OF TIME SHEETS AND THE END OF THE MONTH SHALL BE ENTERED ON THE FOLLOWING MONTH'S TIME SHEET AND PAID ON THE LAST PAY DAY OF THAT MONTH.] Section 4. Amendment of Section 23.40.030 of the Kenai Municipal Code: That Kenai Municipal Code, Section 23.40.030 Annual leave, is hereby amended as follows: 23.40.030 Annual leave. (a) Annual leave is a combined vacation and sick leave. (b) Accrual rate: (1) Full-time classified employees except certain Fire Department employees: 7.3846 hours bi- weekly [SIXTEEN (16) HOURS PER MONTH] —first two (2) years of service. 8.3077 hours bi- weekly [EIGHTEEN (18) HOURS PER MONTH] —three (3) through five (5) years of service. 9.2308 hours bi- wee klv[TWENTY (20) HOURS PER MONTH] —six (6) through ten (10) years of service. New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. 2693 -2013 Page 4 of 5 10.1538 hours bi- week lv[TWENTY -TWO (22) HOURS PER MONTH] —more than ten (10) years of service. (2) Fire (Based on a fifty-six (56) hour week): 10.3385 hours bi- wee kly[TWENTY -TWO AND FOUR - TENTHS (22.4) HOURS PER MONTH] —first two (2) years of service. 11.6308 hours bi- wee klv[TWENTY -FIVE AND TWO- TENTHS (25.2) HOURS PER MONTH] —three (3) through five (5) years of service. 12.9231 hours- bi- week lv[TWENTY -EIGHT (28.0) HOURS PER MONTH] —six (6) through ten (10) years of service. 14.2154 hours bi- wee klv[THIRTY AND EIGHT - TENTHS (30.8) HOURS PER MONTH] —more than ten (10) years of service. (c) Annual leave is charged on an hour - for -hour basis; i.e. normal work day of eight (8) hours would be charged at eight (8) hours annual leave; twelve (12) hour work day, twelve (12) hours annual leave; ten (10) hour work day, ten (10) hours annual leave; twenty-four (24) hour work day, twenty-four (24) hours annual leave. (d) Leave continues to accrue during the period of time an employee is on paid leave except during periods of terminal leave (leave time after which the employee does not intend to return to work). Leave does not accrue during periods of leave without pay. (e) Accrued and unused leave may be carried over from one (1) year to the next for the purpose of accumulating an annual leave account or reserve. The maximum leave hours that may be accrued is six hundred forty (640) hours for classified and exempt, and eight hundred ninety-six (896) hours for Fire Department employees working the fifty-six (56) hour week. (� Annual leave may be used for any purpose desired by the employee. Incidental absences for sickness as unplanned are not controllable. However, planned absences must be coordinated with and approved by the appropriate department head. (g) It is required that each employee use a minimum of eighty (80) hours of leave per calendar year for employees working forty (40) hours per week, and one hundred twelve (112) hours for employees working the equivalent of fifty -six (56) hours per week, and affect appropriate coordination with the department head. If actual hours used are less than the minimum requirement, then the difference shall be deducted from available leave hours without any compensation to the employee. (h) Excess leave above the amount authorized for accrual [Paragraph (a)(2)(d) above] existing on December 31st shall automatically be paid at the then existing rate for the individual employee. (i) Department heads shall schedule vacations for their respective employees with due consideration for the desires of the employees and the work requirements facing the department. Vacation schedules may be amended to allow the department to meet emergency situations. 0) In the event of significant illness or injury not covered by Workman's Compensation, or absence due to training or education an employee on exhausting New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. 2693 -2013 Page 5 of 5 annual leave may, with the approval of the City Manager, borrow up to a six (6) month entitlement (i.e., thirteen (13) [SIX (6) ]x 7.3846[SIXTEEN (16)] hours) to avoid a no- pay status. In the event the person's employment with the City ends prior to the borrowed leave being repaid, the employee must reimburse the City for the value of any leave not repaid. The City may deduct the value of any leave not repaid from the employee's final paycheck. (k) Part -time employees working fifteen (15) hours a week or more shall accrue at the same rate as a full -time employee except on a proportional basis as to hours. (1) Supervisory and professional positions of the classified and exempt services considered to be exempt from the provisions of the Fair Labor Standards Act shall have annual leave charged on an eight (8) hour /whole day basis. If any such employee is present for work during any portion of a day, that employee shall not be charged annual leave for that day. Conversely, if any such employee is absent from her or his normal place of work for an entire day (excluding Saturdays, Sundays, and holidays) that employee will be charged eight (8) hours of annual leave for that day. Section S. 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 July 1, 2013. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 15th day of May, 2013. PAT PORTER, MAYOR Al/-MST: ra odi , City Clerk Approved by Finance: Introduced: May 1, 2013 Adopted: May 15, 2013 Effective: July 1, 2013 New Text Underlined; [DELETED TEXT BRACKETED] 7� prim o the cif l o f V To: Rick Koch, City Manager "Villaye with a Past, C# with a Future" FINANCE DEPARTMENT 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 Telephone: 907 - 283 -7535 ext 221 / FAX: 907 - 283 -3014 From: Terry Eubank, Finance Director Date: April 24, 2013 Re: Ordinances 2693 -2013, 2694 -2013, and 2695 -2013 Ordinances 2693 -2013, 2694 -2013, and 2695 -2013 are necessary for the City to switch its payroll cycle from monthly to bi- weekly effective July 1, 2013. The proposed switch will simplify the City's payroll processing, eliminate control deficiencies of the current system, and assure compliance with payroll laws and regulations. The switch will also provide a means for employees to receive pay for overtime worked on a more - timely basis. Many sections of the KMC reference paying employees on a monthly basis or using a salary basis to pay employees. These changes will replace monthly basis with bi- weekly and replace salary with hourly basis so as to eliminate confusion with provisions of the Fair Labor Standards Act. Other changes necessary for this switch include converting monthly accrual rates for leave to bi- weekly accrual rates. These changes are accomplished in Ordinance 2693 -2013 with no increase or reduction in employee leave benefits. Ordinance 2394 -2013 will change how eligibility for shift differential pay is determined. Currently 75% or more of the shifts worked in a month by an employee must be a qualifying shift to receive shift differential compensation. The proposed change will pay shift differential for each shift worked.