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APPROVE TEMPORARY MEMORANDUM OF UNDERSTANDING (MOU) AND UNREPRESENTED MANAGEMENT/CONFIDENTIAL AND LAW EMPLOYEES’ COMPENSATION PLAN CHANGES TO LIFT VACATION ACCRUAL MAXIMUM (CAPS)
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RECOMMENDATION
It is recommended that the City Council by Motion:
1. Approve the temporary MOU changes to lift Vacation Accrual Maximum (CAPS)
2. Authorize the City Manager, or designee, to take the necessary and appropriate actions to carry out the purpose and intent of this motion
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Summary
As part of the ongoing COVID-19 pandemic, the City of Stockton identified essential workers that were expected to maintain status quo and therefore excluded from the Governor of California, including local government, Stay-At-Home orders. As a result, requests for time-off have been carefully monitored to ensure that departments and City services maintain optimal staffing levels. During the declared state of emergency, March 16, 2020 and until further notice, the City of Stockton is proposing to temporarily lift the vacation accrual CAPS for all employees above their current allotted cap amount and as outlined in their respective MOU’s and Unrepresented Management/Confidential and Law Employees’ Compensation Plan. As of the June 22, 2020 payroll, a total of 48 employees have reached their CAPS.
DISCUSSION
Background
The City Manager, Harry Black, is proposing to temporarily remove the vacation accrual maximum CAPS retroactively to the date the City declared a local state of emergency, March 16, 2020. All annual hours earned above the cap on the day the City Manager determines the end of the impacts from the local declared emergency, will remain in the employee’s accrual bank through December 31, 2021. Employees must use the excess amount or lose it. In addition, the employee may also cash out excess hours in accordance with their respective MOU or Unrepresented Management/Confidential and Law Employees’ Compensation Plan.
Currently, all bargaining unit memorandum of understanding and Unrepresented Management/Confidential and Law Employees’ Compensation Plan contain language specifying vacation accrual maximum CAPS and once the maximum accrual limit is reached, employees may no longer accrue leave hours until they bring accruals under the specified limit.
These temporary provisions are non-precedent setting, and if approved by the City Council, will be effective March 16, 2020. Upon official notice from the City Manager that the state of emergency has been declared over and/or no later than December 31, 2020, payroll will freeze hours in excess of the accrual maximum CAPS.
The process for lifting the vacation accrual maximum CAPS is outlined as follows:
• At the request of the City Manager, and upon approval by City Council to lift the vacation accrual maximum CAPS, payroll will lift the accrual maximum CAPS retro-actively to March 16, 2020.
• Upon official notice from the City Manager that the state of emergency has been declared over and/or no later than December 31, 2020, payroll will freeze hours in excess of the accrual maximum CAPS.
• Any amount in excess of the vacation accrual maximum CAPS will remain in the employee’s accrual bank through December 31, 2021. Employees will be allowed to use the excess amount or cash out in accordance with their respective MOU’s or Unrepresented Management/Confidential and Law Employees’ Compensation Plan.
• Employees will forego any hours in excess of the vacation accrual maximum amount remaining in their vacation accrual banks as of January 1, 2022.
• After official notice from the City Manager that the state of emergency has been declared over and/or no later than December 31, 2020, employees will not begin accruing additional leave hours until they have brought their vacation accrual bank under the amount outlined in their respective MOU or Unrepresented Management/Confidential and Law Employees’ Compensation Plan.
• Through the approved duration of the extension for use or cash out of excess vacation hours, any employee that separates from City employment will only receive a payout consistent with the vacation accrual maximum CAP identified in their respective MOU or Unrepresented Management/Confidential and Law Employees’ Compensation Plan.
FINANCIAL IMPACT
The primary financial impact associated with the adoption of the temporary MOU and Unrepresented Management/Confidential and Law Employees’ Compensation Plan changes to lift Vacation Accrual Maximum (CAPS), was determined to be a loss of productivity. Employees may opt to cash out additional vacation hours, but limitations on the total hours that can be cashed out mitigate the financial impact. It is anticipated that there will be minimal financial impact associated with the adoption of the temporary changes to lift Vacation Accrual Maximum (CAPS).
Attachment A - Letter of Notification to Respective Bargaining Units