AGENDA ITEM REPORT
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AN ORDINANCE AMENDING THE CODE OF ORDINANCES OF THE CITY OF COCONUT CREEK BY AMENDING CHAPTER 21, “PERSONNEL ADMINISTRATION,” ARTICLE I, “CIVIL SERVICE CODE,” SECTIONS 21-1, 21-2, 21-5, 21-6, 21-8, 21-9, 21-10, 21-11, 21-17, AND 21-18, REPEALING SECTION 21-7, AND AMENDING ARTICLE II, “AT WILL- EMPLOYEE POLICIES AND PROCEDURES MANUAL,” SECTIONS 21-19, 21-22, 21-23, 21-24, 21-25, 21-26, AND 21-29 IN ORDER TO PROVIDE REVISIONS TO THE TERMS AND CONDITIONS OF CITY EMPLOYMENT AND PROVIDE CROSS-REFERENCES TO APPLICABLE ADMINISTRATIVE ORDERS. (SECOND READING)(PUBLIC HEARING)
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BACKGROUND:
This item was approved on First Reading at the June 8, 2017, City Commission Meeting.
The City is committed to providing a competitive compensation and benefits package designed to attract and retain highly qualified employees while maintaining fiscal responsibility. Approval of this Ordinance will revise employee benefits, terms and conditions of employment, and personnel policies and procedures, as well as provide clarification or clerical revisions.
DISCUSSION:
With the exception of two substantial revisions (detailed below), this Ordinance consists primarily of minor and clerical revisions to employee benefits and terms and conditions of employment. Additionally, several provisions that serve as policies or procedures rather than laws are being relocated from the Code of Ordinances to Administrative Orders. Two such provisions include employee benefit changes that will have a financial impact on the City and/or employees, as follows:
Employee Longevity Pay - The attached Administrative Order reflects the first increase to the flat-dollar longevity pay since the program was implemented in 1994. It also adjusts the program’s recognition years to align with traditional milestone years (i.e. in 5-year increments instead of 3-year increments). This recommendation aligns with the City’s recognition that longevity fosters preservation and transfer of institutional knowledge, and the City’s desire to recognize employees for years of loyal service.
Retiree Medical Insurance Program - The retiree medical insurance program requires periodic review and revision in order to keep pace with the increasing cost of retiree insurance and the older average retirement age. The attached Administrative Order increases the required age and years of service to become eligible for the program, as well as the monthly dollar amount used to calculate the total benefit, and changes the funding method from monthly to a one-time lump sum deposit into a Retirement Health Savings Plan.
Despite relocation of certain provisions from the Code of Ordinances to Administrative Orders, changes with a budget impact will be subject to approval through the budget process or other appropriate Commission action.
RECOMMENDATION:
Staff recommends approval of this Ordinance.
FISCAL IMPACT:
REVENUES: N/A
EXPENDITURES: None expected in FY17
BUDGETED? No expected impact to FY17 Budget
NOTES: The longevity pay change is expected to increase the FY18 Budget by approximately $80,000 (once offset by the elimination of non-monetary milestone anniversary gifts) and approximately $70,000 in subsequent years. The retiree medical compensation program impact will vary depending on the timing, number, and ages of retirees, but a long-term savings is expected based on the increased eligibility requirements.