HomeMy WebLinkAbout2017-030 Council Benefits Ad Hoc Committee updateDate: May 5, 2017
INFORMAL STAFF REPORT
TO MAYOR AND CITY COUNCIL
SUBJECT:
City Council Employee Benefits Ad Hoc Committee Update
EXECUTIVE SUMMARY:
Report No. 2017-030
The City Council Employee Benefits Ad Hoc Committee ("Committee") has had two meetings to
date: March 24, 2017, and April 27, 2017. They have reviewed and discussed the vacation and
sick benefits as well as health insurance. They are interested in making changes to these benefits
to align them more with other DFW metroplex cities. Staff has provided the Committee with a
couple of change options to vacation accruals, vacation carry-over and payout, and sick leave
accruals. Before making a final recommendation to Council, the Committee has asked the staff to
seek input from an employee committee. Once the Committee is prepared to make a final
recommendation, a presentation will be made to the full Council.
BACKGROUND:
On February 14, 2017, at the request of Council, staff presented information on the City of
Denton's vacation and sick benefits. During that meeting, the Council discussed putting together
an ad hoc Council Committee to review the vacation and sick benefits further and make
recommendations to the Council on any changes they think need to be made. The establishment
of the ad hoc Committee was approved through resolution 2017-007 on March 7, 2017. Kathleen
Wazny, Sara Bagheri, and Keely Briggs serve on the committee.
At the April 11, 2017, City Council meeting Councilmember Wazny, chair of the Committee,
requested the scope of the Committee be expanded to include review of all City of Denton
employee benefits, not just vacation and sick leave. The Council agreed and resolution 2017-007
was amended (reference resolution 2017-014).
The Committee met on March 24, 2017, to begin discussions on the vacation and sick benefits.
The Committee met again on April 27, 2017, to continue its discussions on vacation and sick
benefits. During this meeting, the Committee also began discussing the health insurance benefits.
DISCUSSION:
The Committee expressed interest in ensuring City of Denton employee benefits are more in line
with other DFW metroplex cities. When comparing our benefits to other cities, it is clear that we
are more generous in some cases (as with vacation and some aspects of our health insurance) and
less generous (as with sick leave) in others. The Committee has been considering decreasing the
vacation benefits but increasing the sick leave benefits. Attached are some options they have been
discussing. No considerations have been made for health insurance. Staff suggested that instead of
Date: May 5, 2017 Report No. 2017-030
making specific recommendations on the health insurance benefit provisions (e.g., deductibles, co-
insurance, copays, plan design, etc), it might be better for Council to provide information on their
comfort level for the amount that is budgeted each year to cover any rising health insurance costs
(currently 6% is included in the budget). Staff could then determine changes that should be made,
with the input from the Employee Insurance Committee (EIC) to ensure we were within budget.
Staff has been utilizing the EIC to determine changes to the health insurance benefits for years
now. The EIC includes approximately 30 employees representing all departments. The Committee
thought that was a good idea.
As the Committee is considering its recommendations for changes to any benefits, they wanted to
have an employee committee weigh in on the discussion. Staff suggested utilizing the EIC, which
will be meeting on May 16, 2017, to discuss vacation and sick leave benefits as well as health
insurance. During this meeting the options that the ad hoc committee have been reviewing will be
shared with them. These options are attached to this informal staff report. They will be asked to
seek input from employees in the departments they are representing to determine which options
would be best supported. Staff anticipates compiling this feedback by the first part of June to share
with the ad hoc committee, and eventually, the entire Council.
CONCLUSION:
After receiving input from the employee committee, the Committee will make its final
recommendations. These recommendations will be presented to the full Council in the near future.
ATTACHMENTS:
Exhibit 1— Vacation and Sick Benefit Change Options
STAFF CONTACT:
Carla Romine, Director of Human Resources
940-349-8344
Date: May 5, 2017
Report No. 2017-030
• •
� I I�
Date: May 5, 2017
Vacation Accrual
Report No. 2017-030
Change Options
Date: May 5, 2017
Vacation Benefits
Change Options
OPTION 1:
-No change to monthly accrual
-Cap bonus time at 20years
-No change in carryover
Report No. 2017-030
Denton Current Accrual Proposed
Years of Hours Accrued Per
Service Hours Accrued
Year (including Hours Lost
Per Year
bonus time)
0 —1 120 120 0
1— 2 120 120 0
2— 3 120 120 0
3— 4 120 120 0
4— 5 120 120 0
5— 6 124 124 0
6— 7 128 128 0
7— 8 132 132 0
8— 9 136 136 0
9 —10 140 140 0
10 —11 144 144 0
11-12 148 148 0
12 —13 152 152 0
13 —14 156 156 0
14 —15 160 160 0
15 —16 164 164 0
16 —17 168 168 0
17 —18 172 172 0
18 —19 176 176 0
19 — 20 180 180 0
20 — 21 184 180 -4
21— 22 188 180 -8
22 — 23 192 180 -12
23 — 24 196 180 -16
24 — 25 200 180 -20
25 — 26 204 180 -24
26 — 27 208 180 -28
27 — 28 212 180 -32
28 — 29 216 180 -36
29 — 30 220 180 -40
30 — 31 224 180 -44
31— 32 228 180 -48
32 — 33 232 180 -52
33 — 34 236 180 -56
34 — 35 240 180 -60
35 244 180 -64
Date: May 5, 2017
Vacation Benefits
Change Options
OPTION 2:
-Eliminate bonus time and have a graduated plan
0- 10years 3weeks
10+- 20years 4weeks
20+years 5weeks
-No change in carryover
120 hours peryear
160 hours peryear
200 hours peryear
Report No. 2017-030
(10 hrs per month)
(13.3333 per month)
(16.6666 per month)
Denton Current
Accrua) Proposed
Years of Hours Accrued Per
Seroice Hours Accrued Per
Year (including Hours Lost
Year
bonus time)
0 —1 120 120 0
1— 2 120 120 0
2— 3 120 120 0
3— 4 120 120 0
4— 5 120 120 0
5 — 6 124 120 -4
6 — 7 128 120 -8
7-8 132 120 -12
8-9 136 120 -16
9 —10 140 120 - 20
10 —11 144 160 16
11-12 148 160 12
12 —13 152 160 8
13 —14 156 160 4
14 —15 160 160 0
15 —16 164 160 -4
16 —17 168 160 -8
17-18 172 160 -12
18-19 176 160 -16
19 — 20 180 160 - 20
20 — 21 184 200 16
21— 22 188 200 12
22 — 23 192 200 8
23 — 24 196 200 4
24 — 25 200 200 0
25 — 26 204 200 -4
26 — 27 208 200 -8
27 — 28 212 200 -12
28 — 29 216 200 -16
29 — 30 220 200 -20
30 — 31 224 200 - 24
31— 32 228 200 -28
32 — 33 232 200 -32
33 — 34 236 200 -36
34 — 35 240 200 -40
35 244 200 -44
Date: May 5, 2017
Report No. 2017-030
Vacation Carry-Over and Payout
Change Options
Date: May 5, 2017
OPTION 1
Report No. 2017-030
Don't change carryover amount but change the number of hours eligible for payout. For
example, keep carryover at 320 (480 for Fire CS), but only allow payout up to 240 hours
(360 for Fire CS).
As of 2/20/17, there are 214 employees who have more than 320 hours (480 hours for
Fire CS):
NCS = 157 employees
Police CS = 53 employees
Fire CS = 4 employees
Changing the payout to 240 hours (360 hours for Fire CS) would affect a total of 392
employees; however 214 are already over the maximum allowable hours to be paid. An
additional 178 employees would be impacted by this change.
N CS = 281
Police = 81
Fire CS = 30
To implement with less negative impact on employee morale, could either:
A. Grandfather in existing employees and implement policy change to coincide with
the new fiscal year (with employees starting October 1, 2017).
m
B. Don't grandfather, but to avoid employees potentially requesting a lot of time
off in order not to "lose" hours upon termination, could pay employees the
difference in the maximum hours allowed to be paid.
OPTION 2
Change carryover 240 hour (360 for Fire CS); maximum payout would reflect carryover.
Same comments as above for implementation.
OPTION 3
Implement a graduated carryover plan based on years of service as follows:
Date: May 5, 2017 Report No. 2017-030
Less than 10 years = 240 hours
10+ years = 320 hours
As of 2/20/17, the number of employees by years of service (through 9/30/17) are as
follows:
Years of Service Non Civil Service Police Civil Fire Civil Service
through 9/30/17 Service
Less than 10 years of 678 (63.84%)
63 (37.28%) 58 (33.72%)
service
10+ years of service 384 (36.16%) 106 (62.72%) 114 (66.28%)
Maximum payout would reflect carryover.
Date: May 5, 2017
Sick Accrual
Change Options
Report No. 2017-030
For Non-Civil Service Employees
Date: May 5, 2017
Non Civil Service Sick Benefits
Change Options
OPTION 1:
-Implement a graduated plan
Report No. 2017-030
0 to 5 years = 8 hours per month (96 hours per year)
5+to 10 years = 9 hours per month (108 hours per year)
10+years = 10 hours per month (120 hours peryear)
Proposed
Years of Denton Current
Service Accrua) perYear Hours Accrued Change in Hours
Per Year
0 —1 96 96 0
1-2 96 96 0
2— 3 96 96 0
3— 4 96 96 0
4-5 96 96 0
5— 6 96 108 12
6— 7 96 108 12
7— 8 96 108 12
8— 9 96 108 12
9 —10 96 108 12
10 —11 96 120 24
11-12 96 120 24
12 —13 96 120 24
13 —14 96 120 24
14 —15 96 120 24
15+ 96 120 24
Date: May 5, 2017
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Report No. 2017-030
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7 — 8 96 71.��b ��4
8 — 9 96 71.��b ��4
9 — 71.�b 96 71.��b ��4
71.�b— 7L7L 96 71.��b ��4
7L7L — 71.� 96 71.��b ��4
71.� — 71.3 96 71.��b ��4
71.3 — 7L�4 96 71.��b ��4
7L�4— 71.5 96 71.��b ��4
71.5+ 96 71.��b ��4
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