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2019-140 Executive Residency InformationDate: July 5, 2019 Report No. 2019-140 Page 1 of 6 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: Executive Residency Information EXECUTIVE SUMMARY: Council Member Briggs requested information about residency requirements. Information was initially included in the May 10, 2019, Friday Report. Subsequent information is being included in this informal staff report, including information on the city of residency for City of Denton directors, executives in the City Manager’s Office, and City Council appointees (collectively referred to as “Executives”). BACKGROUND: At the April 23, 2019, Council meeting, Council Member Briggs requested information about the number of directors and deputy directors that work for the City of Denton, whether their annual salary is over $100,000, and whether they reside within City limits. Information responsive to this request was provided in the May 10, 2019, Friday Report. During concluding items at the June 4, 2019, City Council meeting, Council Member Briggs requested additional information regarding residency as well as information on any employment policies/incentives. Texas Local Government Code §150.021 prohibits a municipality from requiring residency within the municipal limits as a condition of employment with the municipality, with the exception of municipal department heads appointed by the mayor or governing body of the municipality. The City of Denton Charter only requires residency for the City Manager. Specifically, section 5.01 states, “At the time of his appointment he need not be a resident of the city or state but during his tenure of office he shall reside within the city.” Although residency is not required for any position other than the City Manager, the City of Denton offers relocation assistance for certain positions. There are no stipulations that the employee must move within Denton’s city limits; however, expectations have been that they must move within a reasonable response time to the workplace. Relevant sections of the City’s Recruitment and Relocation Expenses policy (#101.05) are below. II. RELOCATION Relocation expenses may be made available for executive positions, positions that are highly competitive or difficult to fill. The activities outlined below may be paid. Some of these expenses may be taxable income to the employee based on IRS regulations at the time of reimbursement. A. Travel for Employee and Family Date: July 5, 2019 Report No. 2019-140 Page 2 of 6 1. "House Hunting": Travel expenses for employee and one additional person for "house hunting" at new location—includes one round-trip per person, not to exceed seven days including travel. This includes transportation and reasonably priced lodging, It also includes food and incidental expenses using the Arlington/Fort Worth/Grapevine GSA per diem rate. 2. Family Move: Travel expenses for employee and family to move from former location to new location—includes transportation and reasonably priced lodging. It also includes food and incidental expenses using the Arlington/Fort Worth/Grapevine GSA per diem rate. The City will reimburse the IRS standard mileage rate for moving only one automobile. 3. Close of Sale of Home: Travel expenses for employee to return to former location to "close" sale of former home—includes one round-trip. Includes transportation and reasonably priced lodging, It also includes food and incidental expenses en route at the applicable GSA per diem rate. B. Temporary Living Expenses at New Location The City may pay reasonable lodging expenses for an employee at their new location for a maximum of 90 days. III. MOVING EXPENSES Moving expenses may be paid for executive, highly competitive, or difficult to fill positions. Moving expenses will include all reasonable expenses in connection with packing, moving, unpacking, and insuring of household furniture. When using a moving company, three quotes will typically be required. If authorized in accordance with this directive, the lowest of three quotes will be reimbursed, unless a lesser amount is specified in writing. Comparison to Other Cities Fourteen (14) cities in the DFW metroplex were surveyed to determine if they had residency requirements for any positions, if they provide incentives to live in the city limits, or if there is current relocation policy. Twelve (12) of the cities responded. Of those 12 cities, nine (9) require residency of one or more positions. While only two cities reported that they had relocation language written in a policy, an additional four cities have a practice of offering a relocation allowance for certain level positions. Only one city (Mesquite) reported they had an incentive, and it was for Police Officers. The reported incentive is more of a relocation assistance, not to exceed $2,500, for Police Officers who move within the city limits. A compilation of the survey responses is included in Table 1 on pages 3 and 4. Date: July 5, 2019 Report No. 2019-140 Page 3 of 6 Table 1 Survey of Other Cities Regarding Residency Requirements, Relocation Policy, and Incentives to Live Within the City Limits June 2019 No Yes If yes, what position(s)? Arlington No response Carrollton X City Manager and Assistant City Manager The following language is included as part of the compensation policy: Reasonable relocation costs may be reimbursed for management level positions. None Flower Mound X Town Manager No policy None Fort Worth X City Manager, Police Chief, and Fire Chief Yes. The policy states: The City may provide a relocation allowance for employees hired into executive, Director, Assistant Director, or hard-to-fill positions (as designated by the Talent Acquisition Division) for reasonable relocation (moving) costs. A minimum relocation distance of 50 miles from a former residence to the new work location is required for an allowance consideration. Specific relocation allowance amounts are determined by the hiring manager and must be approved by the Department Director. Relocation allowances for Assistant Director and hard-to-fill positions must be approved by the Human Resources Director. Relocation allowances for executive and Director level positions will require City Manager approval. All allowances are subject to budget availability. In no event shall a relocation allowance exceed 10% of the new hire’s annualized salary. The relocation allowance is a one-time payment that will be included with the employee's regular paycheck. The approved relocation allowance should be documented in the candidate's offer letter or subsequent documentation. The City will comply with all applicable federal and state income tax withholding and Form W-2 reporting requirements for a relocation allowance. If an employee voluntarily or involuntarily terminates employment with the City of Fort Worth during the twenty-four (24) month period following their hire date, the employee may be required to make full or partial repayment of the relocation allowance, which may be deducted, in whole or in part, from the employee’s pay or other compensation to be paid to the employee. None Frisco X N/A No policy None Residency Requirement Relocation Policy Incentive(s) to Live in City LimitsCity Date: July 5, 2019 Report No. 2019-140 Page 4 of 6 Table 1, continued No Yes If yes, what position(s)? Garland X City Manager No formal policy but have offered a relocation allowance for some in the past. An example of what was offered based on one offer letter is as follows: Relocation expenses directly attributable to move will be reimbursed on the lowest of 3 relocation bids (not to exceed $10,000). None Grand Prairie X N/A No policy None Irving X Presiding Municipal Court Judge, the Municipal Court Judge, and the City Manager No formal policy but have offered a relocation allowance for some Executives in the past. None Lewisville X City Manager No relocation policy but have reimbursed moving expenses for executive level positions in the past. They are required to obtain three quotes and go with the lowest one. None Little Elm No response McKinney X Mayor and City Council, but not department heads No policy None Mesquite X City Manager, Deputy City Manager, Assistant City Manager, Director of Economic Development and Police Chief A relocation allowance has been authorized for certain Executive positions. The amount is pre-determined by where they are moving from and there are some stipulations. They are advised in their contingent offer letter that in exchange for this assistance, they will remain an employee of the City of Mesquite for at least five years. Should they voluntarily depart from the City's employment prior the five years of service, they will be expected to repay the City a prorated share of the allowance based upon the length of employment. POLICY: Police Officers employed after May 1, 2006 will be eligible to apply for reimbursement of expenses associated with relocation of personal residence so long as the new address is within the City of Mesquite. The reimbursement of moving expenses may not exceed $2,500.00 for each qualified Police Officer. This policy further stipulates that such relocation reimbursement must be: verified by the Director of Human Resources to be related to the moving of a household. Typically such household moving expenses will include the following: a moving service, rental of a moving van/trailer, moving supplies such as boxes, mileage of personal vehicles used in the move, deposits for utility services, lease application fees, security deposit required in a lease, and any other related expenses approved by the Director of Human Resources; related to temporary living quarters for up to three months; verified with detailed receipts; for relocations completed within 18 months of the Police Officer's hire date; accompanied by a signed "Promissory Note" obligating repayment of any relocation reimbursement received if the Police Officer does not complete at least two full years of employment with the City of Mesquite. Plano X City Manager, Police Chief, and Fire Chief None Richardson X City Manager and Assistant City Managers No policy None Residency Requirement Relocation Policy Incentive(s) to Live in City LimitsCity Date: July 5, 2019 Report No. 2019-140 Page 5 of 6 Table 2 City of Denton Residency for Executives as of June 21, 2019 Name Department Residency Job Title Arora, Pushpendra S Wastewater Coppell Director of Wastewater Banks, Kenneth E Water Whitesboro General Manager of Utilities Bekker, Jennifer Marie Library Services Denton Director of Libraries Boerner, Brian Keith Solid Waste Pilot Point Director of Solid Waste Canizares, Mario Alberto City Manager's Office Coppell Deputy City Manager/COO Cox, Ethan Lendon Public Works Argyle Director of Public Works Dalal, Umesh Vinochandra Internal Audit Keller City Auditor Dixon III, Frank Ralph Police Flower Mound Police Chief Estes, William Todd Engineering Denton Dir Cap Projects/City Engineer Fox, Holly Elizabeth Municipal Judge's Office Flower Mound Municipal Court Judge Gaines, David Jeffrey Finance Frisco Director of Finance Hedges, Kenneth W Fire Corinth Fire Chief Hensley, Sara Lynn City Manager's Office Denton Assistant City Manager Hileman, Lawrence Todd City Manager's Office Denton City Manager Kraft, Melissa C Technology Services Frisco Chief Technology Officer Kuechler, Sarah E Public Communications Corinth Dir of Public Affairs & IGR Leal, Aaron Legal Denton City Attorney McDonald, Scott Alexander Development Services Keller Development Svcs Director/CBO Ogden, Cassandra D Procurement/Compliance Denton Director of Prcmt & Compl Packan, Gary Robert Parks and Recreation Arlington Director of Parks & Recreation Puente Jr, Antonio Finance Denton Chief Financial Officer Pugsley, Frank East Water Flower Mound Director of Water Rogers, Jessica A Economic Development Corinth Director of Economic Dvmt Romine, Carla Jean Human Resources Frisco Director of Human Resources Thomson, Tiffany Marie Customer Service Hickory Creek Director of Customer Service Wood, Rachel Smithson City Manager's Office Denton Chief of Staff Residency Information for Executives Table 2, below, provides a list of City of Denton Executives and residency. CONCLUSION: With Denton’s location in the DFW metroplex, employees have many options where to live while still having a reasonable commute to work. Where people choose to live can be impacted by several factors including, but not limited to, housing inventory and cost, proximity to family and/or friends, family preference, schools, and other activities. STAFF CONTACT: Carla Romine, Director of Human Resources (940) 348-8344 carla.romine@cityofdenton.com Date: July 5, 2019 Report No. 2019-140 Page 6 of 6 REQUESTOR: Council Member Briggs PARTICIPATING DEPARTMENTS: Human Resources, City Attorney’s Office, City Manager’s Office STAFF TIME TO COMPLETE REPORT: 12 hours