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Item 5BCity of Southlake, Texas MEMORANDUM April 9, 2003 TO: Billy Campbell, City Manager FROM: Kevin Hugman, Director of Human Resources SUBJECT: Resolution No. 03 -023, Amending the Personnel Policies to adopt the Interim Status Pay Policy. Action Requested: City Council approval of Resolution No. 03 -023, amending the Personnel Policies to adopt the Interim Status Pay Policy. Background Information: From time to time, certain positions of significant responsibility and /or duties become vacated by employee resignations, illnesses, leaves of absence, or other reasons. Due to the nature of the position, it is desirable to fill the position quickly, at least on an interim basis. Often, these positions in the past have been filled on an interim basis by another employee, who assumes increased duties and responsibilities at no additional compensation. This policy would provide a systematic and organized approach for the administration of interim assignments to positions of higher responsibility and duties. It would also provide additional compensation to those employees assigned, in writing, to an interim assignment. The policy applies to all employees, including fire and police personnel. The major highlights of the policy are: • Interim assignments must be at least thirty (30) consecutive calendar days in duration. • Interim assignments at the Department Director or deputy director level require the City Manager's written approval. Department Directors have the authority to approve other interim assignments, taking into consideration the necessity to fill the position on an interim basis. • An employee assigned in an interim status will receive additional compensation of 3 -5% above the employee's current pay. Financial Considerations: It is anticipated that in many cases, the interim assignment will fill a vacant position, or fill in for the incumbent employee on extended leave without pay. In these cases, there would be no adverse effect to the budget. In other situations, the budget impact is anticipated to be less than $10,000 annually. Billy Campbell, City Manager April 9, 2003 Page 2 Citizen Input/ Board Review: Not Applicable. Legal Review: The City Attorney has reviewed the policy. Alternatives: Input as desired by Council. Supporting Documents: • Resolution No. 03 -023, Amending the Personnel Policies to include the Interim Status Pay Policy. • Interim Status Pay Policy Staff Recommendation: City Council approval of the Interim Status Pay Policy and Resolution No. 03- 023, adopting the Interim Status Pay Policy and including it in the Personnel Policies. RESOLUTION NO. 03 -023 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOUTHLAKE, TEXAS, AMENDING THE PERSONNEL POLICIES TO ADOPT THE INTERIM STATUS PAY POLICY. WHEREAS, the City of Southlake (the "City ") recognizes that from time employees may be asked to temporarily fulfill the duties and responsibilities of a significantly higher position; and WHEREAS, the City also recognizes that an interim assignment may last for a significant duration of time and that an employee should be fairly compensated for these significant additional duties; and WHEREAS, Section 141.033 of the Texas Local Government Code requires that fire and police personnel, when performing the duties of a higher classification, be compensated at that pay level; and WHEREAS, a standard policy is necessary to provide fair and equitable assignment and compensation for all employees while in an interim status; now THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SOUTHLAKE, THAT: Section 1: The City of Southlake hereby amends the Personnel Policies to include the Interim Status Pay policy. Section 2: This resolution shall become effective after its passage and adoption by the City Council. PASSED AND APPROVED THIS THE DAY OF , 2003. Rick Stacy, Mayor ATTEST: Lori Farwell, City Secretary City of Southlake Personnel Policies Section Wage and Salary Administration Topic Interim Status Pay Effective Date April 15, 2003 Approved By : Resolution No. 03 -023 Revision Date Interim Status Pay 1.0 Purpose and Scope The City recognizes that certain positions of significant responsibility and duties, may from time to time become vacated for a variety of reasons, and that another employee may be asked to fulfill the duties of an employee serving in a higher level position for an interim period. It is also recognized that these duties are of such a nature and level of responsibility, and may last for an unknown period of time, that additional compensation is warranted for an employee asked to fulfill these interim duties. This policy is to provide a systematic and organized approach for the administration of interim assignments to a position of higher responsibility. This policy applies to all employees, including fire services personnel and sworn police officers. 2.0 Definitions 2.1 Executive Management Team — the City Manager, Assistant City Manager, and the department directors. 2.2 Deputy Director — the Assistant Finance Director, the Chief of Administrative Services, the Fire Chief, the Police Chief, the Deputy Director of Community Services, the Deputy Director of Public Works /City Engineer, and the Public Works Operations Manager. 2.3 Interim Assignment — An assignment of at least thirty (30) consecutive calendar days to a position of higher responsibility and duties. Interim Status Pay Effective: Page 2 of 3 3.0 Policy The City Manager may temporarily assign an employee to serve in a position on the Executive Management Team. A department director may recommend, subject to City Manager approval, an employee to serve in a deputy director position for an interim assignment. 3.1 An interim assignment, except as provided below, shall not become effective without the City Manager's written approval, and will stipulate the effective date and estimated duration of the interim assignment. 3. 1.1 The Department Director shall approve, in writing, all interim status assignments for personnel below the level of deputy director, taking into consideration the need to fill the position on an interim basis. 3.1.2 Fire and Police personnel: Except for executive management and deputy director positions, the Director of Public Safety or his designee, will approve interim assignments, in writing, for fire and police personnel who perform the duties of a higher classification. 3.1.3 In the event an interim assignment extends beyond twelve (12) months, the City Manager or Department Director, as appropriate, shall re- evaluate the interim status assignment and determine if it shall be renewed. If renewed, the employee is eligible for additional compensation as per paragraph 3.2. 3.2 An employee serving in an interim assignment status will be compensated with a temporary increase in salary of 3 -5 % over the employee's current salary (placing the employee on the step closest to this range in the higher grade, but not exceeding 5 %), or the minimum pay rate for the position in which the employee is serving, whichever is greater. 3.2.1 Interim Status Pay will be paid commencing upon the first day following completion of the required minimum time period, but will be effective as of the first day of the interim assignment. 3.3 An employee acting in an interim assignment status must be qualified to perform and must actually perform the full range of duties of the higher -level position during the interim assignment. The duties performed of the higher level position must be above and beyond the duties described in the employee's current job classification. 3.4 Upon completion of the interim assignment, the employee will return to the employee's regular job assignment and duties. The employee's compensation will return to that employee's regular rate of pay prior to the temporary Interim Status Pay Effective: Page 3 of 3 assignment. 3.4.1 If an employee's step date occurs during an interim assignment and the employee is eligible to move to the next step, the employee shall advance to the next step upon completion of the interim assignment. 3.5 An interim assignment does not constitute a promotion and shall in no way be construed as a permanent assignment.