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HomeMy WebLinkAboutItem 4.05 Salary Pay Time Method~C~OFDU~~r~ CITY CLERK ~~~ File # ^©~0"Q^~ ~1~ $~ ,~~~// AGENDA STATEMENT CITY COUNCIL MEETING DATE: November 4, 2008 SUBJECT: Adoption of Resolution Prescribing the Time and Method of Paying Salaries and Wages and Rescinding Resolution No. 25-86 Report Prepared by Paul S. Rankin, Administrative Services Director~~/ ATTACHMENTS: RECOMMENDATION: FINANCIAL STATEMENT: 1. Resolution 25-86 (Adopted March 10, 1986) 2. Proposed Resolution Adopt Resolution. There is no financial impact from making this change. DESCRIPTION: In June 2008 the City Council adopted an updated Personnel Ordinance (Ordinance 26-08) as well as updated Personnel System Rules (Resolution 84-08). .These items were presented as part of the comprehensive effort to update City policies and procedures. In researching historical actions taken by the City Council, it was determined that a previous resolution adopted in 1986 requires significant modifications to account for changes in reporting requirements over the years. Areas Contained In 1986 Resolution Requiring Adjustment The 1986 Resolution (Attachment 1) contains requirements in three areas that are in conflict with current best practices as well as reporting requirements. 1) City Attornev Reporting The resolution contains specific reporting of City Attorney earnings under the California Public Employees Retirement System (CaIPERS). Due to a change in the law, appointed City Attorneys working for an independent law firm can no longer participate in Ca1PERS. This change was in place when Mr. Bakker was appointed as the Dublin City Attorney. Therefore, the language in section 2 of the 1986 Resolution is no longer necessary. 2) Timing of City Commissioner and City Council Pav Dates The 1986 Resolution does not address the timing of Commissioner payments. A per meeting stipend was not provided to Commissioners prior to August 1989 (Planning Commissioners -Ordinance 11-89; Parks & Recreation Commissioners Ordinance 12-89). The Heritage & Cultural Arts Commissioners were added in 1999. The current practice has been to accommodate City Commissioner payments on the pay period following the date of the meeting. COPY TO: Page 1 of 2 ITEM NO. ~~ F:\Finance\Payroll\Pay Periods Council\ag_stmt_revise~ayperiod.doc The 1986 Resolution established the reporting of City Council pay on a bi-weekly basis. Ca1PERS requires the reporting of Mayor and City Council salaries be made to them on the second pay period of each month. The City is required to report these amounts as monthly salaries. In order to provide consistency with elected and appointed public official pay disbursements, and to simplify reporting on the same cycle as is required by Ca1PERS, it is proposed to establish monthly pay disbursements for elected Council Members and appointed City Commissioners. 3) Accommodation For Electronic Deposit The 1986 resolution did not account for automatic deposit of payroll checks and contains a procedure regarding pre-issuance of paychecks when employees were on leave. With the ability to make direct deposits this procedure is not necessary and staff do not have knowledge of its use in many years. Staff also propose to adjust the language related to adjustments to scheduled pay dates when the pay date falls on a holiday. The 1986 Resolution states that pay dates falling on a City holiday are advanced by one day. This can create unrealistic processing timelines when there are two City holidays in a row (i.e. Thanksgiving and the day after Thanksgiving). In this example the Friday after Thanksgiving is not a bank holiday and electronic deposits can be posted to employee accounts, without changing the established pay date. For the Thanksgiving example, the issuance .payroll (including direct deposits) on the day before the holiday would result in disbursements on Wednesday. Bank protocol requires transmittal of the direct deposit information two banking days prior to the date of deposit. This results in a need to transmit the data on Monday, and places significant constraints on the verification and accurate reporting of payroll to be completed in one day. The proposed language would allow for the pay date to remain on Friday, with a transmittal window on the preceding Tuesday. Those without Direct Deposit will receive a check mailed or distributed at the close of business on Wednesday. The City also has established other 2-Day holidays which could result in a similar conflict. Proposed Resolution Attachment 2 contains a resolution which will update the process to reflect current procedures. It is proposed to apply the revised holiday schedule beginning with the upcoming Thanksgiving holiday. The monthly processing of payments for the Mayor, City Councilmembers, and City Commissioners, is proposed to begin with the second pay period in December 2008. This will .allow Staff to closeout all payments for November service with the pay period ending December 5, 2008. These changes will assure that current reporting requirements are accurately reflected in the adopted City Council Resolutions. Recommendation Staff recommend that the City Council adopt the Resolution included as Attachment 2. Page 2 of 2 ~~ ~ RESOLUTION NO. 25 - 86 A RESOLUTION OF THE CITY COUNCIL OF-THE CITY OF DUBLIN PRESCRIBING THE TIME & METHOD OF PAYING SALARIES AND F~-AGES AN]D RESCINDING RESOLUTION NO. 97-85 WHEREAS, the CitX Council Members are currently paid on a monthly basis; and WHEREAS, the remaining employees are paid on a bi-weekly basisi and -- WHEREAS, coverage under the"Public Employees Retirement System (PERS) requires reporting payroll information on the same basis for alI employees of 'the agency covered by PERS; and WHEREAS, the City Council will be covered under PERS with the payroll period beginning .April 12, 19.86; ,and . T•~7HEREAS, the PERS amendment also allows the option of coverage for the City Attorney; and WHERE~IS, Resolution No. 97-85 designated payment methods which are not. appropriate-once the PERS exclusion is removed, NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Dublin that effective with the pay period beginning April 12, 1986, all employees shall be paid on a bi-weekly basis by a warrant issued by the City. Clerk in the following manner: 1. Regular .Payroll a. Each bi-weekly cycle shall include two seven day work weeks. (The normal work week shall be defined in Rule XI, Section 1 of the Personnel System Rules.) The payroll reporting period shall be fourteen (14) days in length. b. Payment for the 14 day period shall be made on the seventh day following the close of the payroll reporting period. c. If the regular pay day occurs on a holiday, the payment shall be made on the working day prior to the regular pay dav. 2. Special Provisions for City Attorney a. State PEPS law allows the option of PERS coverage for the City Attorney, and if membership is selected, payment and reporting must be on the same basis as employees, despite ' the independent contractor status of these services. 1 Attachment 1 ~~~ b. If the City Attorney elects coverage, payment shall comply with PERS reporting requirements-and payment may be pre- issued on a bi-wee]cly cycle. c. Payment for City Attorney services shall continue to be made on the City's General Fund account, due to the provision of these services by an independent-contractor. d. All pre-issued payments will be reported to the City Council on the first Warrant Register prepared after the .payment is issued. 3. Payment to .Employees Upon Termination a_ If any employee leaves employment with the City, they may be paid on the day their employment ends. 4. Pre-Issuance of Regular Payroll ~Jhen Employee is on General Leave a. If an employee has received approval to utilize general leave and will not be in attendance on a regular pay date, a paycheck may be pre--issued.: b. The issuance shall be at the discretion of the City .Clerk and will require two weeks advance notice in writing. c. The check shall not be released prior to the last regular working day prior to the commencement of the employee's general leave. BE TT FURTHER RESOLVED that the City Council, salary for the period from April 1, 1986 through April lI, 1986 shall be prorated prior to the initiation of the bi-weekly system. PASSED, APPROVED AND ADOPTED this 10th day of March, 19.86, AYES: Couneilmembers Hegarty, Moffatt, Vonhee~der and Mayor Snyder NOES: Councilmember Jeffery ABSENT: None <~ .~ /~~l M yor AT ~' City C1 r Page 2 RESOLUTION NO. xx - 08 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN PRESCRIBING THE TIME & METHOD OF PAYING SALARIES AND WAGES AND RESCINDING RESOLUTION N0.25-86 WHEREAS, On March 10, 1986 the City Council established Resolution No. 25-86 which established certain policies and procedures related to the timing of payroll; and WHEREAS, the changes made by Resolution 25-86 were in part to comply with 1986 reporting requirements of the California Public Employee Retirement System (Ca1PERS); and WHEREAS, over the past 22 years there have been changes in reporting requirements, the addition of City appointed Commissioner stipend pay; and the implementation of direct deposit; and WHEREAS, the changes that have occurred result in the content of Resolution No. 25-86 being incomplete as well as inconsistent with current requirements; and WHEREAS, it is desirable to update City Resolutions to reflect current policies and procedures required for payroll processing. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin hereby rescinds Resolution No. 25-86 in its entirety. BE IT FURTHER RESOLVED that the City Council hereby authorize the City Manager to establish procedures and carry out the payment of salaries, and wages consistent with the following provisions. Regular City Employee Payroll a. Each bi-weekly payroll cycle shall include two seven day work weeks, consistent with the provisions established in adopted Personnel System Rules. b. Except as provided in Section 3 related to holidays, payment for the 14 day period shall be made on the seventh day following the close of the payroll reporting period. The City will-offer and encourage the payment of all payroll issued through electronic direct deposit to accounts designated by the employee. The funds shall be transferred in accordance with bank requirements to accommodate deposits to employee accounts on the scheduled pay dates. d. Payment upon termination may differ from designated schedules and shall be directed by the City Manager or designee and in accordance with established laws. Attachment 2 2. Elected Officials ~Mayor & City Council) and Appointed Commissioners a. Payment for Mayor and City Council monthly salaries shall be made on a monthly basis on the second regular pay period of the month. b. Payment to City appointed Commissioners of per meeting stipends will be issued on a monthly basis on the second regular pay period of the month. c. The City will offer and encourage the payment through electronic direct deposit to accounts designated by Elected Officials and City Commissioners. 3. Schedule Adjustments For Holidays Falling On Scheduled Pay Dates a. If the regular pay day occurs on a City holiday, as established in the Personnel Rules, and that date is also a banking holiday (which would preclude the posting of electronic direct deposit of funds) the payment shall be made on the day prior to the regular pay day. Those payments being issued by City check in lieu of a Direct Deposit shall be mailed or released by the close of business on the work day prior to the City Holiday coinciding with a pay day. 4. Implementation a. Upon adoption, City Staff shall take steps to implement these provisions and communicate them to employees. Section 3 related to Holiday schedules shall be implemented beginning with the pay period ending November 21, 2008. Section 2 shall be implemented with the second pay period in December. PASSED, APPROVED AND ADOPTED this 4th day of November, 2008, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ATTEST: Mayor City Clerk