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Home My WebLink AboutCOW 2020-10-12 Item 4D - Resolution - Discontinue Temporary Pay Reduction for Non-Represented Employees (Based on COVID-19 Budget Shortfall)COUNCIL AGENDA SYNOPSIS Initials Meeting Date Prepared by Ma_ yor's review Council review 10/12/20 CO ❑ Motion Mtg Date .1 Resolution 10/19/20 CO ❑ Public Hearing Mtg Date ❑ Other Mtg Date Mtg Date Mtg Date 10/19/20 SPONSOR ❑ Council ❑ Mayor ❑ HR ❑ DCD 11 Finance ❑ Fire ❑ TS ❑ PSR ❑ Police ❑ Plr SPONSOR'S Discussion on a resolution to discontinue a temporary pay reduction on non- SUlL1IARY represented employees based on a budget shortfall associated with the Coronavirus pandemic. REVIEWED BY ❑ Trans&Infrastructure ❑ CommunitySvs/Safety- ❑ LTAC ❑ Arts Comm. DATE: 10/12/20 11 Finance Com ❑ Planning/Economic Dev. Comm. ❑ Planning Comm. CHAIR: SEAL ❑ Parks COMMITTEE ITEM INFORMATION ITEMNo. 4.D. 95 STAFF SPONSOR: VICKY CARLSEN ORIGINAL AGENDA DA IL: 10/12/20 AGENDA ITEM TITLE A Resolution to Repeal Resolution No. 1988 to discontinue pay reductions and furloughs CATEGORY 0 Discussion 10/12/20 ❑ Motion Mtg Date .1 Resolution ❑ Ordinance Mtg Date ❑ Bid Award Mtg Date ❑ Public Hearing Mtg Date ❑ Other Mtg Date Mtg Date Mtg Date 10/19/20 SPONSOR ❑ Council ❑ Mayor ❑ HR ❑ DCD 11 Finance ❑ Fire ❑ TS ❑ PSR ❑ Police ❑ Plr SPONSOR'S Discussion on a resolution to discontinue a temporary pay reduction on non- SUlL1IARY represented employees based on a budget shortfall associated with the Coronavirus pandemic. REVIEWED BY ❑ Trans&Infrastructure ❑ CommunitySvs/Safety- ❑ LTAC ❑ Arts Comm. DATE: 10/12/20 11 Finance Com ❑ Planning/Economic Dev. Comm. ❑ Planning Comm. CHAIR: SEAL ❑ Parks COMMITTEE RECOMMENDATIONS: SPONSOR/ADMIN. COMNHFIEE City Administration Forward to C.O.W. for discussion COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $ $ Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 10/12/20 MTG. DATE ATTACHMENTS 10/12/20 Informational Memorandum dated 10/7/20 Draft Resolution Resolution #1988 10/19/20 95 96 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 97 98 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, REPEALING RESOLUTION NO. 1988 RELATING TO A TEMPORARY PAY REDUCTION FOR NON -REPRESENTED EMPLOYEES TO ASSIST WITH ADDRESSING THE BUDGET SHORTFALL ASSOCIATED WITH THE CORONAVIRUS PANDEMIC. WHEREAS, the City projected a budget shortfall in the General Fund due to lost tax revenues resulting from the coronavirus pandemic and the subsequent State -mandated "Stay Home — Stay Healthy" order; and WHEREAS, the City Council took immediate, decisive steps to address the financial impact of the pandemic, which included impacts to City personnel; and WHEREAS, to assist with addressing the projected budget shortfall of $12 million in 2020 due to lost tax revenues associated with the coronavirus pandemic, Resolution No. 1988 was adopted to reduce by 10% the base pay of non -represented employees through salary reductions or furloughs for the remainder of 2020; and WHEREAS, due to the early action of the City Council, the City's projected budget shortfall is now $7.6 million and, due to the City's improved financial health, the City desires to end the stated pay reduction and furloughs earlier and reinstate regular base pay and work schedules for non -represented employees starting on November 1, 2020 and for the remainder of 2020; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Effective Date. This resolution shall be effective as of 12:00 AM on November 1, 2020. Repealer. Resolution No. 1988 is hereby repealed in its entirety as of 11:59 PM on October 31, 2020. {KZS2285264.DOCX;1/13175.000001/ }CC:\Legislative Development\Non-rep pay reduction due to COVID-19--Repeal 10-7-20 :bjs Page 1 of 2 99 PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, a Regular Meeting thereof this day of , 2020. ATTEST/AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk De'Sean Quinn, Council President APPROVED AS TO FORM BY: Office of the City Attorney Filed with the City Clerk: Passed by the City Council: Resolution Number: {KZS2285264.DOCX;1/13175.000001/ }CC:\Legislative Development\Non-rep pay reduction due to COVID-19--Repeal 10-7-20 :bjs Page 2 of 2 100 AI Washington Resolution Nm a a A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, PROVIDING FOR A TEMPORARY PAY REDUCTION OF NON -REPRESENTED EMPLOYEES TO ASSIST WITH ADDRESSING THE BUDGET SHORTFALL ASSOCIATED WITH THE CORONAVIRUS PANDEMIC, EFFECTIVE JUNE 1, 2020. WHEREAS, the City has projected a budget revenue shortfall in the General Fund of $12 million in 2020 due to lost tax revenues resulting from the coronavirus pandemic and the subsequent State -mandated "Stay Home — Stay Healthy" order; and WHEREAS, the City is taking phased steps to address the financial impact of the pandemic, which includes impacts to personnel; and WHEREAS, to assist with addressing the projected budget revenue shortfall of $12 million in 2020 due to lost tax revenues associated with the coronavirus pandemic, it is necessary to reduce the pay of non -represented employees 10% for the remainder of 2020; WHEREAS, consistent with WAC 296-128-533, deductions from the salary of a public employee for absences where authorized by law due to a budget -required leave of absence will not disqualify the public employee from being paid on a "salary basis" except in the workweek in which the absence occurs and for which the public employee's pay is accordingly reduced; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: W:\Legislative tevelopment1N^on-rep pay reduction due to COVID-19 5-12-20 JCP:bjs Review and analysis by Barbara Saxton Page 1 of 2 101 Temporary Pay Reduction Plan for Non -Represented Employees. A. Non -represented employees in the following positions will have a reduction in base pay equal to 10% effective June 1, 2020 through December 31, 2020: • City Administrator • Deputy City Administrator • Public Works Director • Police Chief • Fire Chief • Parks & Recreation Director • Technology Services Director • Finance Director • DCD Director • Human Resources Director • Economic Development Administrator • Municipal Court Administrator B. All non -represented employees not listed in subsection A will have a reduction in pay equal to 10% through means of either working the equivalent of a paid 36 -hour work week (FLSA-Exempt) for each pay period between June 1, 2020 and December 31, 2020, or taking the equivalent of 14 furlough days (FLSA-Nonexernpt) effective June 1, 2020 through December 31, 2020. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this (V' day of 2020. ATTEST/AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk De'Se-n Quinn, Council President APPROVED AS TO FORM BY: Office of the City Attorney Filed with the City Clerk: Passed by the City Council: 6 f-za- Resolution Number: ? $3 S -I3-20 W:\legislative Developrne it\ lon-rep pay reduction due to COVID-19 5-12-20 102 JCP:bjs Review and analysis by Barbara Saxton Page 2 of 2