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HomeMy WebLinkAboutOrdinance No. 2695-2013►A Suggested by: Administration CITY OF KENAI ORDINANCE NO. 2695 -2013 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING KENAI MUNICIPAL CODE CHAPTERS: ONE (1), AGENCIES, OFFICERS, AND EMPLOYEES; TEN (10), GENERAL AND MISCELLANEOUS PROVISIONS; AND TWENTY THREE (23), PERSONNEL REGULATIONS, TO CLARIFY THAT EMPLOYEES OF THE CITY THAT ARE NOT EXEMPTED FROM THE OVERTIME AND MINIMUM WAGE PROVISIONS OF THE FAIR LABOR STANDARDS ACT ARE PAID ON AN HOURLY BASIS AND NOT A SALARY BASIS. WHEREAS, the City employees two categories of employees within the classified service: employees exempt from the overtime and minimum wage provisions of the Fair Labor Standards Act (FLSA) and those employees that are not exempt; and, WHEREAS, in order to be exempt from the minimum wage and overtime provisions of the FLSA employees must meet certain criteria, including that they are paid on a salary basis; and, WHEREAS, employees that are not exempt from overtime and minimum wage requirements, or that are treated as non - exempt by the City are paid on an hourly basis; and, WHEREAS, KMC 23.10.030 provides a list of employee positions treated as exempt by the City in addition to the City Manager, City Attorney and City Clerk; and, WHEREAS, multiple sections of City's municipal code refer to non -FLSA exempt employees being paid a salary; and, WHEREAS, the sections of the City's municipal code that refer to the payment of salaries to hourly employees should be amended to clarify and reflect actual practices. 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 1.25.030 of the Kenai Municipal Code: That Kenai Municipal Code, Section 1.25.030 Substitute, is hereby amended as follows: New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. 2695 -2013 Page 2 of 9 1.25.030 Substitute. (a) In the event of a vacancy of the office of City Clerk, or in the event the City Clerk is not available to perform the duties of the office because of illness or other incapacity, being out of town on official business, being on annual leave, or being unavailable for any other reason, there is hereby appointed to perform all of the duties of the City Clerk during such vacancy, absence, incapacity, or unavailability, a Deputy City Clerk who shall be that employee of the City who shall be designated, and may be from time to time modified, by resolution of the City Council as the person who shall have the duty of Deputy City Clerk. (b) In the event the City Clerk and the holder of the office designated by Council as Deputy City Clerk are simultaneously unavailable for such duties as set forth above, a Temporary Deputy City Clerk is hereby authorized as follows: (1) The appointment of a City employee as Temporary Deputy City Clerk may be made by the Clerk after consultation with the City Manager, but if the Clerk is not available or able to make such appointment, then the appointment will be made by the Mayor after consultation with the City Manager; (2) The employee appointed as Temporary Deputy City Clerk shall serve as such until the return to duty of the City Clerk, the return to duty of the Deputy City Clerk, or until the appointment of some other person to that position by the City Council, which ever first occurs; (3) The appointment of a Temporary Deputy City Clerk shall be made in writing and shall be posted on the City Administration bulletin board with copies to all Council Members, Department Heads, and Chairs of Commissions, and a copy thereof shall be placed in the personnel file of the employee so appointed. (c) When any period of service as City Clerk by a Deputy City Clerk or a Temporary Deputy City Clerk shall be five (5) working days or more in length, the person so serving shall be paid at the same [SALARY] rate as the City Clerk during such period. Section 3. Amendment of Section 10.40.030 of the Kenai Municipal Code: That Kenai Municipal Code, Section 10.40.030 Information available to the public, is hereby amended as follows: 10.40.030 Information available to the public. Except as provided by Section 10.40.040, or by other provisions of municipal, State or Federal law, all public records shall be open to inspection by any person subject to regulations regarding the time, place and manner of inspection which may be adopted by the City Council pursuant to Section 10.40.050. Documents are not required to be created in order to comply with an information request, but will be provided from documents /information that already exists. The types of records and information open to public inspection pursuant to this chapter shall include, but shall not be limited to, the following: New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. 2695 -2013 Page 3 of 9 (a) Financial and operational cost information, including information as to revenues, expenditures, indebtedness, formal departmental recommendations in regard to project priority, and after budget finalization, department budget requests; (b) Information relating to contracts to which the municipality is a party, including payment provisions, information relating to bids and requests for proposals received or solicited by the municipality, and information relating to the status of goods or services furnished pursuant to contract; (c) Regulatory, financial assessment and tax information concerning real property located within the municipality; (d) [SALARY] Compensation levels and fringe benefits accorded municipal officers and employees by law, including information in regard to the pay range and step grade of an employee or officer and statistical analyses or compilations relating to municipal practices and policies concerning compensation for various occupational groups, departments and divisions; (e) Statistical information and analyses concerning case loads, numbers and categories of persons for whom services were performed or treatment provided, results achieved and per patient and per unit cost; and (f) Feasibility, management, cost effectiveness and similar reports prepared by the municipality with municipal moneys; (g) The foregoing enumeration of information available for public inspection is not designed to limit the categories of records and information that shall be made available to the public pursuant to this chapter. The policy of providing public access to public information shall be broadly and liberally construed. Section 4. Amendment of Section 23.10.030 of the Kenai Municipal Code: That Kenai Municipal Code, Section 23.10.030 Classified service, is hereby amended as follows: 23.10.030 Classified service. The classified service shall include all other positions in the City service. (a) All positions established by the annual budget or [salary] compensation guide adopted by resolution of the City Council. Any new position created at the start or during the budget year and either ratified or affirmed by the City Council. (b) The following supervisory and professional positions of the classified service are considered to be exempt from the provisions of the Fair Labor Standards Act due to the nature of the position: Airport Manager Finance Director Fire Chief New Test Underlined; [DELETED TEXT BRACKETED] Ordinance No. 2695 -2013 Page 4 of 9 Librarian Parks and Recreation Director Police Chief Police Lieutenant Public Works Director Public Works Manager Senior Center Director. Section 5. Amendment of Section 23.25.010 of the Kenai Municipal Code: That Kenai Municipal Code, Section 23.25.010 Pay plan- Development, is hereby amended as follows: 23.25.010 Pay plan — Development. The City Manager, in consultation with the Finance Director, shall prepare a pay plan and rules for its administration. The rate and range where each class shall be such as to reflect fairly the differences in duties and responsibilities and shall be related to compensation for comparable positions in other places of public employment. The objective of the pay plan shall be to provide an appropriate [salary] compensation structure to recruit and retain an adequate supply of competent employees. Section 6. Amendment of Section 23.25.040 of the Kenai Municipal Code: That Kenai Municipal Code, Section 23.25.040 Appointee compensation, is hereby amended as follows: 23.25.040 Appointee compensation. (a) Upon initial appointment to a position, the employee shall receive the minimum [SALARY] compensation for the class to which the position is allocated. (b) However, in the cases when unusual difficulty in filling the vacancy is experienced, or when the appointee is exceptionally qualified, the City Manager may cause the appointment to be made at a [SALARY] compensation level above the minimum, but not more than Level D for the same class. Section 7. Amendment of Section 23.25.060 of the Kenai Municipal Code: That Kenai Municipal Code, Section 23.25.060 Overtime, is hereby amended as follows: New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. 2695 -2013 Page 5 of 9 23.25.060 Overtime. (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] compensation 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 New Text Underlined; [DELETED TEXT BRACKETED[ Ordinance No. 2695 -2013 Page 6 of 9 (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: 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] nay rate is compensation for the normal shifts specked 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 S. Amendment of Section 23.30.070 of the Kenai Municipal Code: That Kenai Municipal Code, Section 23.30.070 Personnel records, is hereby amended as follows: 23.30.070 Personnel records. (a) The City Manager shall cause a service or personnel record to be maintained for each employee in the service of the City of Kenai. (b) The personnel record shall show the employee's name, title of position held, the department to which assigned, [SALARY] compensation, change in employment status, training received, and such other information as may be considered pertinent. (c) A personnel action form shall be used as the single document to initiate and update personnel records. New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. 2695 -2013 Page 7 of 9 (d) Employee personnel records shall be considered confidential and shall be accessible only to the following: (1) The employee concerned; (2) Selected City officials authorized by the City Manager. (e) Department personnel files should not be developed or maintained, except as working records; i.e., accumulating data for evaluation reports. Departmental personnel records are therefore unofficial and have no standing. Section 9. Amendment of Section 23.45.010 of the Kenai Municipal Code: That Kenai Municipal Code, Section 23.45.0 10 Purpose, is hereby amended as follows: 23.45.010 Purpose. The primary purpose of the employee performance evaluation program is to inform employees how well they are performing and to offer constructive criticism on how they can improve their work performance. Performance evaluation shall also be considered in decisions affecting [SALARY] Pay advancement, promotions, demotions, dismissals, order of layoff, order of re- employment, placement, and training needs. Section 10. Amendment of Section 23.45.040 of the Kenai Municipal Code: That Kenai Municipal Code, Section 23.45.040 Review of performance reports, is hereby amended as follows: 23.45.040 Review of performance reports. The rating officer shall discuss the performance evaluation report with the employee before the report is made part of the employee's permanent record. If the rating officer plans to recommend the denial of an in -grade [SALARY] pay increment or recommend an extraordinary increment, the report must be discussed with the reviewing officer and the City Manager prior to review with the employee. Section 11. Amendment of Section 23.45.050 of the Kenai Municipal Code: That Kenai Municipal Code, Section 23.45.050 Unsatisfactory evaluation, is hereby amended as follows: 23.45.050 Unsatisfactory evaluation. Employees who receive an overall rating of "unsatisfactory" on their annual evaluation shall not be eligible to receive an in -grade [SALARY] pay increment. Employees who receive two consecutive overall ratings of "unsatisfactory" shall be subject to dismissal. Section 12. Amendment of Section 23.55.020 of the Kenai Municipal Code: That Kenai Municipal Code, Section 23.55.020 Salary structure by grade, is hereby amended as follows: New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. 2695 -2013 Page 8 of 9 23.55.020 [SALARY] Compensation structure by grade. (a) [SALARY] Compensation structure by grade is hereby established in accordance with the table that is appended to this title and which may be amended, modified, or replaced by ordinance, in which case a copy of the amended, modified, or replacement table shall be substituted for the prior table and placed in the code at the end of this title. (b) On completion of the probationary period, each employee shall be advanced one (1) step. At succeeding anniversary dates, subject to evaluation, employee may be advanced a step increment. 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 is two (2) years. Section 13. Amendment of Section 23.55.050 of the Kenai Municipal Code: That Kenai Municipal Code, Section 23.55.050 Hourly rates -Part time employees, is hereby amended as follows: 23.55.050 Hourly rates[ — PART -TIME EMPLOYEES]. (a) Hourly rates for [PART -TIME] employees not exempted from minimum wage an d overtime provisions of the Fair Labor Standards Act (with various experience, skills, and responsibilities) are hereby established in accordance with the table that is appended to this title and which may be amended, modified, or replaced by ordinance, in which case a copy of the amended, modified, or replacement table shall be substituted for the prior table and placed in the Code at the end of this title. [HOURLY RATES FOR PART -TIME EMPLOYEES WILL BE COMPUTED ON A PRO RATA BASIS BASED ON A TWO THOUSAND EIGHTY (2,080) WORK YEAR ACCORDING TO RANGE AND STEP. FOR EXAMPLE, THE HOURLY RATE OF A PART -TIME EMPLOYEE WITH A RANGE /STEP OF 1.1 -A WOULD BE: $14,665 = 2,080 = $7.05.] (b) On completion of the probationary period, each employee shall be advanced one (1) step. At appropriate biennial or quadrennial anniversary dates thereafter, subject to receiving a satisfactory evaluation, the employee may be advanced a step increment. The time period normally between steps B to C to D to E to F is two (2) years. The time period normally between steps F to AA to BB to CC is four (4) years. Current part-time employees who have completed their probation prior to the effective date of the ordinance codified in this section shall be given a step increase from A to B. Thereafter, they shall receive a step increase at the appropriate biennial or quadrennial year anniversary date, subject to receiving a satisfactory evaluation. Section 14. Amendment of Section 23.55.080 of the Kenai Municipal Code: That Kenai Municipal Code, Section 23.55.080 Longevity pay, is hereby amended as follows: New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. 2695 -2013 Page 9 of 9 23.55.080 Longevity pay. All regular employees who have received a rating of satisfactory or better in their last performance evaluation and who have been at Step CC for a period of at least two (2) years as of July 31st shall be paid a longevity bonus of two percent (2 %) of his or her annual [SALARY] pay rate (i.e., excluding overtime). The longevity pay shall be paid just once a year on the August payroll, except that the longevity bonus in 2008 shall be paid after the effective date of the ordinance codified in this section but prior to the end of the calendar year 2008. Notwithstanding the above, any employee who has received a range increase or a noncost of living pay increase within their current pay range within the twelve (12) months prior to July 31st is not eligible for a longevity pay bonus. Section 15. 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 16. 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. A T: S d)r NlodiZ City Clerk / Approved by Finance: 7 Timms -- rki.jRTER, MAYOR Introduced: May 1, 2013 Adopted: May 15, 2013 Effective: July 1, 2013 New Text Underlined; [DELETED TEXT BRACKETED] y� VA!_p Ike ci'fy of 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.