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HomeMy WebLinkAbout06/18/2013 16 Authorization of Severance Pay for Employee Terminated by City Manager; YMC Amendment 2.20.060BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 1.69 For Meeting of: 6/18/2013 ITEM TITLE: Ordinance relating to Chapter 2.20 of the City of Yakima Municipal Code, and amending section 2.20.060 of the YMC to grant authority to the City Manager to authorize severance pay to an employee terminated by the City Manager. SUBMITTED BY: Jeff Cutter, City Attorney Helen A. Harvey, Senior Assistant City Attorney SUMMARY EXPLANATION: This Ordinance provides that the City Manager may, at his option, authorize a payment to a terminated City employee of lump sum severance pay equal to up to four months of the employee's base salary as full and complete payment and satisfaction of any claims of the employee arising out of his or her employment. Although the City Manager has the option to authorize a severance payment under the terms of the Ordinance, the City Manager is not required to authorize a severance payment to a terminated employee. As consideration for the severance payment, the employee must, prior to receipt of the payment, execute and deliver to the City a release of the City and its officers, employees and agents for all acts and actions from the beginning of employment until the date of the release. Resolution: Other (Specify): Contract: Start Date: Item Budgeted: Funding Source /Fiscal Impact: Strategic Priority: Insurance Required? No Mail to: Phone: Ordinance: X Contract Term: End Date: Amount: Fund related to employee salary or Risk Management Fund. This can be cost effective for the City depending on the situation. Public Trust and Accountability ORDINANCE NO. 2013- AN ORDINANCE relating to Chapter 2.20 of the City of Yakima Municipal Code, and amending section 2.20.060 of the YMC to grant authority to the City Manager to authorize severance pay to an employee terminated by the City Manager. BE IT ORDAINED BY THE CITY OF YAKIMA: SECTION 1. Section 2.20.060 of the Yakima Municipal Code is amended to add a new section to read as follows: 2.20.060 Transfer, promotion, reclassification, demotion,, eF reinstatement or termination of employees. A. When an employee is transferred, promoted, reclassified, demoted or reinstated, the employee's rate of pay for the new position shall be determined as follows: 1. Transfer. An employee transferred to another position in the same class will continue to receive the same rate of pay until the employee is promoted or demoted. 2. Promotion /Reclassification. An employee promoted or reclassified to a position in a class having a higher pay range shall receive a salary increase as follows: a. If the employee's rate of pay in the lower class is below the minimum salary of the higher class, the employee's rate of pay shall be increased to the minimum rate of the higher class. b. If the employee's rate of pay in the lower class falls within the range of pay for the higher class, the employee shall be advanced to the pay step in the higher range which is next higher in amount above the employee's pay before promotion. c. In the case of promotion, within -range increases shall be granted in accordance with YMC 2.20.040(2). d. In the case of reclassification, the employee shall be eligible for a within -range increase on the employee's normal anniversary date. For employees who have been at the maximum of the salary range for more than one year, the date of reclassification shall become the employee's anniversary date for future within -range increases. 3. Demotion. An employee demoted from a position in one class to another class having a lower pay range shall receive a salary decrease. (a) If the rate of pay of the employee in the higher class is above the maximum salary for the lower class, the employee's rate of pay will be decreased to the maximum rate of the lower class. (b) If the rate of pay of the employee in the higher class is within the pay range of the lower class, the employee's rate of pay shall be reduced to the next lower. B. Severance. When an employee is terminated bV the City _ , - Formatted: Font: Arial, a pt Manager, the City Council grants authority to the City Manager, at his or her option,, to authorize a payment to the terminated City employee of _ - - Formatted: Font: Arial, a pt lump sum severance pay equal to up to four (4) months of the employee's base salary as full and complete payment and satisfaction of any claims of the employee arising out of his or her employment. The City Manager is granted the authority to determine the specific amount of the severance payment; provided, however, it shall not exceed four (4) months of the employee's base salary without the specific consent of the City Council. Any lump sum severance payment is subject to normal Payroll withholding taxes. As consideration for such severance payment, the employee shall, prior to receipt of the payment, execute and deliver to the City a general release of the City of Yakima and its elected and appointed officers, employees and agents for all acts and actions (whether accrued or subsequently accruing) from the beginning of employment until the date of release, said release to be prepared by the City Attorney or his or her designee. Although the City Manager has the option to authorize a severance payment under the terms of this section, _ _ _ _ _ _ _ - - Formatted: Font: Arial, a pt the City Manager is not required to authorize a severance payment to an employee who has been terminated. SECTION 2. If any section, subsection, paragraph, sentence, clause or phrase of this ordinance is declared invalid or unconstitutional for any reason, such decision shall not affect the validity of the remaining portions of this ordinance. SECTION 3. This ordinance shall be in full force and effect 30 days after its passage, approval, and publication as provided by law and by the City Council. PASSED BY THE CITY COUNCIL, signed and approved this _ day of June, 2013. ATTEST: City Clerk Publication Date: Effective Date: Micah Cawley, Mayor -2- ORDINANCE NO. 2013- AN ORDINANCE relating to Chapter 2.20 of the City of Yakima Municipal Code, and amending section 2.20.060 of the YMC to grant authority to the City Manager to authorize severance pay to an employee terminated by the City Manager. BE IT ORDAINED BY THE CITY OF YAKIMA: SECTION 1. Section 2.20.060 of the Yakima Municipal Code is amended to add a new section to read as follows: 2.20.060 Transfer, promotion, reclassification, demotion, reinstatement or termination of employees. A. When an employee is transferred, promoted, reclassified, demoted or reinstated, the employee's rate of pay for the new position shall be determined as follows: 1. Transfer. An employee transferred to another position in the same class will continue to receive the same rate of pay until the employee is promoted or demoted. 2. Promotion /Reclassification. An employee promoted or reclassified to a position in a class having a higher pay range shall receive a salary increase as follows: a. If the employee's rate of pay in the lower class is below the minimum salary of the higher class, the employee's rate of pay shall be increased to the minimum rate of the higher class. b. If the employee's rate of pay in the lower class falls within the range of pay for the higher class, the employee shall be advanced to the pay step in the higher range which is next higher in amount above the employee's pay before promotion. c. In the case of promotion, within -range increases shall be granted in accordance with YMC 2.20.040(2). d. In the case of reclassification, the employee shall be eligible for a within -range increase on the employee's normal anniversary date. For employees who have been at the maximum of the salary range for more than one year, the date of reclassification shall become the employee's anniversary date for future within -range increases. 3. Demotion. An employee demoted from a position in one class to another class having a lower pay range shall receive a salary decrease. (a) If the rate of pay of the employee in the higher class is above the maximum salary for the lower class, the employee's rate of pay will be decreased to the maximum rate of the lower class. (b) If the rate of pay of the employee in the higher class is within the pay range of the lower class, the employee's rate of pay shall be reduced to the next lower. B. Severance. When an employee is terminated by the City Manager, the City Council grants authority to the City Manager, at his or her option, to authorize a payment to the terminated City employee of lump sum severance pay equal to up to four (4) months of the employee's base salary as full and complete payment and satisfaction of any claims of the employee arising out of his or her employment. The City Manager is granted the authority to determine the specific amount of the severance payment; provided, however, it shall not exceed four (4) months of the employee's base salary without the specific consent of the City Council. Any lump sum severance payment is subject to normal payroll withholding taxes. As consideration for such severance payment, the employee shall, prior to receipt of the payment, execute and deliver to the City a general release of the City of Yakima and its elected and appointed officers, employees and agents for all acts and actions (whether accrued or subsequently accruing) from the beginning of employment until the date of release, said release to be prepared by the City Attorney or his or her designee. Although the City Manager has the option to authorize a severance payment under the terms of this section, the City Manager is not required to authorize a severance payment to an employee who has been terminated. SECTION 2. If any section, subsection, paragraph, sentence, clause or phrase of this ordinance is declared invalid or unconstitutional for any reason, such decision shall not affect the validity of the remaining portions of this ordinance. SECTION 3. This ordinance shall be in full force and effect 30 days after its passage, approval, and publication as provided by law and by the City Council. PASSED BY THE CITY COUNCIL, signed and approved this _ day of June, 2013. ATTEST: City Clerk Publication Date: Effective Date: Micah Cawley, Mayor -2-