FIN 2020-10-12 Item 1B - Resolution - Discontinue Temporary Pay Reduction for Non-Represented Employees (Based on COVID-19 Budget Shortfall)

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City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Finance Committee FROM: Vicky Carlsen, Finance Director CC: Mayor Ekberg DATE: October 7, 2020 SUBJECT: A Resolution to Repeal Resolution No. 1988 ISSUE Resolution 1988 instituted a 10% pay reduction for specific staff members, as well as a 10% furlough for all other non -represented staff. Because the City is in better financial shape than was contemplated when Resolution 1988 was passed, and the City has the desire to return all affected staff to full time and compensation, Resolution 1988 must be repealed. BACKGROUND As the City approached how to mitigate the revenue losses associated with the pandemic, one tool that was used was furloughs and pay reductions. It was always the goal of the City to use furloughs rather than layoffs to achieve expenditure reductions. Three Teamsters bargaining units voted for furloughs; one chose layoffs. Non -represented staff were furloughed at a 10% pay reduction with a corresponding 10% reduction in work hours via Resolution 1988, which also specified 12 positions that received a 10% pay reduction with no reduction in work hours. DISCUSSION Because the City acted quickly and used many tools to address the pandemic -associated revenue reductions, the City is in better financial shape today than was anticipated when Resolution 1988 was passed. By freezing open positions, restricting the use of overtime, reducing general fund transfers to fleet, suspending temporary labor, restricting travel and other savings, the City saved considerable expenditures. In addition, revenues — while still down from pre -pandemic times — have returned at a faster rate than expected in May of this year. Returning everyone to full time will benefit the Tukwila community and will ensure a higher level of service for our residents, businesses and guests. It will increase timeliness for questions, permits and other matters and allow for additional work to be prioritized. While City facilities largely remain closed due to the pandemic, discontinuing the furloughs will allow the City to return to normal business hours to serve the community. It will also be a great help for the employees who have worked diligently and creatively through these difficult times with fewer hours in the week and compensation. The City Council sets the pay scale for non -represented staff. This is why Resolution 1988 only covers non -represented City staff, and the Council must repeal the resolution in order to take non -represented staff off of furlough. RECOMMENDATION The Finance Committee is being asked to forward this item to the October 12, 2020 Committee of the Whole for discussion and consensus to move the draft resolution to the October 19, 2020 Regular meeting. ATTACHMENTS Draft Resolution repealing Resolution No. 1988 Resolution 1988 5