HomeMy WebLinkAbout2010-021 Temporary Furloughs; YMC Adding 2.20.160; Declaring Period of Financial Distress ORDINANCE NO. 2010 -21
AN ORDINANCE of the City of Yakima declaring a period of financial distress as a result of
the Statewide and local economic recession and reduced revenues which
require reductions in expenditures in the City's General Government and
related Funds, including employee compensation, and thereby
necessitating the implementation of an unpaid furlough program for
specific exempt and non - exempt employees of the management group as
defined in Section 2.20.115(2) of the City of Yakima, thus adding new
section 2.20.160 "Temporary Furloughs" to City of Yakima Municipal
Code Chapter 2.20, "Salaries."
WHEREAS, the local, State and National economies are experiencing sustained
economic losses resulting in decreased revenues; and
WHEREAS, the City of Yakima is experiencing unprecedented financial stress resulting
in a significant shortfall of tax -based funding needed to sustain the current level of general
government operations through 2010; and
WHEREAS, the City of Yakima's 2010 General Fund Budget faces an estimated $1.25
million dollar shortfall as a result of the decreased tax -based revenues; and
WHEREAS, the projected revenue loss has required the City to take action to reduce
spending, including overall operating budget reductions, management pay freezes, staff layoffs,
unfilled vacancies, position eliminations, Municipal Jail cost cutting measures, applications for
increased Federal funding, service reductions, etc.; and
WHEREAS, the City needs to maintain essential services while reducing the need for
reductions in force of skilled employees; and
WHEREAS, an unpaid furlough program for specific tax - funded exempt and non - exempt
management group employees is a viable method for achieving further savings; and
WHEREAS, furlough negotiations for specific tax - funded represented employees are
ongoing in an attempt to reach an accord to avoid further layoffs or salary reductions; and
WHEREAS, Senate Bill (SB) 6157 changes RCW 41.40.010 to allow foregone
compensation due to mandatory furloughs enacted as an expenditure reduction until June 30,
2011, to be included in Public Employee's Retirement System (PERS) final retirement benefit
compensation; and
WHEREAS, the City Manager requires the flexibility to adjust furloughs on a case -by-
case basis for public safety, services, and comportment with the legislative intent for other
retirement plans not covered by SB 6157; and
WHEREAS, the Yakima City Council deems it to be in the best interest of the City of
Yakima to authorize the City Manager to implement furlough procedures in response to the
City's decreasing revenues with the flexibility to modify as safety, services and personnel
dictate; now, therefore,
BE IT ORDAINED BY THE CITY OF YAKIMA:
Section 1. New Section 2.20.160 of the Yakima Municipal Code is added and reads as follows:
2.20.160 Temporary Furloughs.
In declared periods of financial distress, cost reduction efforts may include certain
employee positions in the General and related funds. Upon declaration of such a period by the
city council, the city manager, as authorized herein, may implement furlough procedures
encompassing mandatory unpaid time periods for the management group as defined in Section
2.20.115(2), and represented employees (subject to negotiation). In order to maintain a high
level of public safety, acceptable service levels, employee efficiency and morale, flexibility of
actual implementation of the furlough day(s) is both desirable and necessary. The city manager
or his designee shall have the authority to modify or waive the procedures on a case -by -case
basis as necessary. It is the intent of this Section to mirror that of Senate Bill (SB) 6157
whereby furlough periods do not reduce employee compensation calculations for retirement
purposes for Public Employees' Retirement System (PERS) members, and to expand that
intent to other city employees under plans other than PERS.
Section 2. 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 Charter. This ordinance shall expire on
December 31, 2011 or upon earlier repeal by the City Council.
PASSED BY THE CITY COUNCIL, signed and approved this 4 day of May, 2010.
LZI)
Micah. Cawley, 1')hayor
ATTEST:
`/ • • h / '
City Cle k J�X
Ordinance No.: 2010 -21
Publication Date: May 7, 2010
Effective Date: June 6, 2010
-2-
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
0 AGENDA STATEMENT
Item No. 7
For Meeting Of : May 4, 2010
ITEM TITLE: An Ordinance of the City of Yakima adding new section 2.20.160, "Temporary
Furloughs" to the City of Yakima Municipal Code Chapter. 2.20, "Salaries" and declaring a period
of financial distress.
SUBMITTED BY: Dick Zais, City Manager
Rita DeBord, Finance Director
Cindy Epperson, Deputy Director of Accounting & Budgeting
James Mitchell, Assistant City Attorney
CONTACT PERSON: Dick Zais, # 575 -6040
Rita DeBord, # 575 -6070
SUMMARY EXPLANATION: In response to the continuing Statewide and local economic
recession, the City's current state of financial distress and the continued deterioration of General
Government (i.e. tax - supported) revenues, City. Management prepared a cost reduction proposal
to reduce General Government operational budgets by $1,250,000. A detailed listing of budget
reductions, including employee furloughs, was presented to the City Council at their April 20,
2010 meeting. At that meeting, Council directed staff to bring back the legislation necessary to
• implement employee furloughs for non -union represented employees and to authorize the City
Manager to negotiate employee furloughs with the applicable unions.
The proposed employee furlough includes those positions directly and indirectly supported by
General Government (tax supported) resources and related funds; however most 24 hour
emergency operations employees and Municipal Court and Prosecution division employees are
exempted from the mandatory furloughs in order to maintain the highest possible service levels
to our citizens in the areas of public safety and criminal justice. Additionally, Municipal Court
provided an alternative expenditure reduction in an amount similar to that of the furlough had it
been implemented for Court personnel. Management has begun negotiations with union
representatives regarding furloughs for union represented employees funded from General
Government resources.
Continued on next page...
•
Resolution Ordinance X Contract _Other (Specify) Report
Funding Source: NA
APPROVED FOR SUBMITTAL:` .
City Manager
STAFF RECOMMENDATION:
BOARD /COMMISSION /COMMITTE RECOMMENDATION: (1) the Council Budget Committee
0 recommended approximately $1.25 million reduction in general government expenditures, which
included the unpaid furlough option, (2) at their April 20, 2010 meeting, Council directed staff to
prepare this legislation for their review and approval. •
COUNCIL ACTION:
The 300 000 this is in target for the total 2010 budget savings from employee furlou furloughs is $300,000; •
9 9 9 9 $,
addition to the wage freeze implemented for all management group employees in 2010. Staff
estimates the $300,000 targeted savings can be reached with the implementation of a 5 -day,
unpaid furlough for the proposed 223 affected positions; a list of those positions is attached.
(Note: 5 days is approximately 2% of a work year). The extension of a furlough into 2011 will be
reviewed as the 2011 budget is developed.
(Note: Due to the fact that the costs of many positions included in the proposed furlough are
allocated to multiple service units, calculating the expenditure savings in each of the six Budget
Priorities entails a time - intensive, manual calculation, which staff did not have time to complete
prior to this item going to print.)
The employee furlough, as proposed, will impact approximately 223 General Government
employees, including management, supervisors, front -line staff and other employees. We
recognize the adverse impacts the proposed furlough will have on individual employees and their
families, as well as the City's ability to provide services to our citizens. We hope that the
economy will recover soon and restore the City's revenues to more normal levels so as to relieve
the economic pressures on the City and eliminate the need to extend the furloughs or to impose
further service reductions in the future. In the meantime, management greatly appreciates staffs'
understanding and support for the need to reduce costs in order to maintain the financial stability
of the City.
Attached please find:
• Legislation authorizing an employee furlough;
• A listing of the positions affected by the proposed employee furlough;
• Copy of the April 20, 2010 memo from the City Manager to all employees that discussed .
the current fiscal distress of the City and addressed the proposed employee furlough
•
Page 1 of 6
City of Yakima
• 2010 General Government Budget
Mid - Year Reductions - Furloughed Positions
# in Mgt # in # in Fire
Dept. Job Class/Title Groups AFSCME PERS Total
012 -City Manager
1110 City Manager 1
1311 Executive Secretary 1
1130 Assistant City Manager 1
10506 Executive Assistant 1
Dept Total 4 4
014 -City Clerk/Records
1234 City Clerk 1
7161 Public Records Officer 1
10502 Deputy City Clerk 1
7123 Department Assistant III 1
Dept Total 2 2 4
015 - Finance
1140 Finance Director 1
1243 Deputy Director of Accounting & Budg. 1
• 2316 Financial Services Specialist 4
10302 Accountant 3
10301 Payroll Officer 1
10305 Financial Services Technician Payroll 2
10520 Finance Department Assistant 1
10304 Treasury Services Officer 1
10303 Financial Services Officer 1
Dept Total 11 4 15
016 - Human Resources
1231 Human Resources Manager 1
•
10101 Deputy Human Resources Mgr 1
10102 Chief Examiner 1
10103 Human Resources Specialist 4
10104 Human Resources Assistant 1
Dept Total 8 8
017 - Legal (Civil)
1120 City Attorney 1
1321 Sr Assist City Attorney II 1
1322 Sr Assist City Attorney I • 1
1323 Assistant Attorney II • • 1
10512 Legal Assistant I 1
10511 Legal Assistant II 3
• 10510 Legal Assistant III 1
Dept Total 9 9
CJE 4/29/2010 4:30 PM 05 -04 -10 Agend Item Report - 2010 Furlough ce (2).xls
Page 2 of 6
City of Yakima
2010 General Government Budget •
Mid - Year Reductions - Furloughed Positions
#in Mgt #in #in Fire
Dept. Job Class/Title Groups AFSCME PERS Total
019 - Purchasing
1232 City /Co Procurement Mgr 1
11805 Senior Buyer 1
2234 Buyer II 1
2231 Buyer I 1
2233 Purchasing Assistant 1
Dept Total 2 3 5
021- Planning
1150 Director - Community & Econ. Develop. 1
1254 Planning Manager 1
11201 Supervising Planner 1
3321 Associate Planner 1
3311 Assistant Planner 3
11601 CED Office Administrator 1
3312 Planning Technician 1
Dept Total 4 5 9
022 -Code Administration
•
11251 Supervising Code Inspector 1
11602 Code Inspections Office Supervisor 1
4420 Fire Code Inspector 1
4421 Code Inspector 4
4315 Plans Examiner II Commercial 2
4310 Plan Examiner I Residential 1
4419 Code Compliance Officer 2
4441 Permit Technician 2
6510 Animal Control Officer 2
Dept Total 2 14 16
•
CJE 4/29/2010 4:30 PM 05 -04 -10 Agend Item Report - 2010 Furlough ce (2).xls
Page 3of6
City of Yakima
0 2010 General Government Budget
M id - Year Reductions - Furloughed Positions
# in Mgt # in # in Fire
Dept. Job Class/Title Groups AFSCME PERS Total
031 - Police
1190 Police Chief 1
1281 Deputy Police Chief 1'
11740 Crime & Intelligence Analyst Super. 1
6610 Parking Enforcement Officer 1
11710 Police Services Supervisor * 2
6252 Police Services Specialist I 16
6253 Police Services Specialist II 4
1434 Case Specialist 1
13601 Building Superintendent 1
11701 Police Administrative Assistant 1
6235 Corrections Administrative Specialist 1
8205 YPD Fleet Specialist 1
6212 Assistant Evidence Technician ` 1
11730 Forensic Supervisor * 1
8541 Building Maintenance Specialist 1
Dept Total 9 25 34
032 - Fire
1180 Fire Chief 1
6380 Deputy Fire Chief * 2
16101 Fire Administrative Assistant 1
6441 Secretary II 1
8230 Maintenance Mechanic 1
Dept Total 4 0 2 6
041- Engineering
1271 City Engineer 1
11104 Senior Engineer 1
11101 Construction Supervisor 1
11107 Chief Engineer 1
3120 Design Engineer 2
3130 Development Engineer 1
4141 Construction Inspector 2
10601 Engineering Contracts Specialist 1
8701 Street Inspector 1
Dept Total 5 • 6 11
051- City Hall Maintenance
• 13601 Building Superintendent 1 1
CJE 4/29/2010 4:30 PM 05 -04 -10 Agend Item Report - 2010 Furlough ce (2).xls
Page4of6
City of Yakima
2010 General Government Budget
•
Mid -Year Reductions - Furloughed Positions
# in Mgt # in # in Fire
Dept. Job Class/Title Groups AFSCME PERS Total
052 - Information Systems
11901 Supervising Senior Analyst 2
10201 Senior Analyst (E) 1
2111 Lead Application System Designer 1
2112 Network Service Engineer 1
2109 Application Developer 2
2110 Database Administrator 1
2108 Computer Services Technician 4
2107 Computer Operations Technician 2
2116 Lead Client Services Technician 1
2102 GIS Technician 1
7611 Print Shop Operator 1
Dept Total 3 14 17
131- Parks & Recreation (including Cemetery)
1267 Parks & Recreation Manager 1
13102 Parks Superintendent 1
8818 Park Maintenance Specialist 5
11503 Recreation Supervisor 2
5266 Aquatic Specialist 1
5256 Recreation Activities Coordinator 2
8841 Aquatic Maintenance Technician 1
11501 Recreation Program Supervisor 1
7111 Senior Center Assistant 1
8825 Golf Maintenance Specialist 1
8831 Cemetery Maintenance Technician 1
5235 Recreation Activities Specialist 1
Dept Total 5 13 18
141- Streets and Traffic Engineering
1261 Street &Traffic Ops Manager 1
11301 Traffic Operations Supervisor 1
8664 Senior Traffic Sign Specialist 1
8663 Traffic Sign Specialist 4
4223 Signal Technician III 1
4222 Signal Technician II 2
4221 Signal Technician I 1
4635 Traffic Signal System Analyst 1
4622 Traffic Technician II 2
13302 Street Maintenance Supervisor 1
8713 Street Maintenance Crew Leader 5
8711 Street Maintenance Specialist 19
410
Dept Total 3 36 39
CJE 4/29/2010 4:30 PM 05 -04 -10 Agend Item Report - 2010 Furlough ce (2).xls
Page 5 of 6
City of Yakima
110 2010 General Government Budget
M id - Year Reductions - Furloughed Positions
# in Mgt # in # in Fire
Dept. Job Class/Title Groups AFSCME PERS Total
151- Public Safety Communications
1274 Public Safety Communications Mgr. 1
17101 Public Safety Asst Comm. Mgr 1
18101 Communications Office Assistant 1
4522 Electronics Supervisor 1
4521 Electronics Technician II 1
4520 Electronics Technician I 1
Dept Total 3 3 6
551 - Equipment Rental
1263 Fleet Manager 1 .
12103 Equipment Supervisor 1
7122 Dept Assist II 1
8203 Fleet Maintenance Technician 2
8211 Mechanic 6
8213 Auto Storekeeper 1
Dept Total 2 10 12
560 - Public Works Administration
fa
1160 Director of Public Works 1
13601 Building Superintendent 1
11603 Public Works Office Assistant 1
2262 Safety & Training Officer 1
7122 Dept Assist II 1
7123 Dept Assist III 2
7124 Dept Assist IV 1
8511 Custodian - 1
Dept Total 3 6 9
•
Grand Total 80 - 138 5 223
* Recently certified by Teamsters -- original contracts are being negotiated.
4101 .
CJE 4/29/2010 4:30 PM 05 -04 -10 Agend Item Report - 2010 Furlough ce (2).xls
Page 6 of 6
City of Yakima
2010 General Government Budget
•
Mid -Year Reductions - Furloughed Positions
# in Mgt # in # in Fire
Dept. Job Class/Title Groups AFSCME PERS Total
Purposed Furlough Hours:
5 -day Furlough (1.92% of annual comp.) $285,000
Plus: Municipal Court Overtime reduction $15,000
Total additional savings for 2010 (meets target) $300,000
(Note: a 6 - Day Furlough (or approx. 2.3% of annual comp.) would save an estimated $342,000 annually)
Scope: This listing includes all General Government positions (i.e. General, Parks, and Street Funds), with the
exclusion of 24 -hr emergency personnel. Also included are the Internal Service funds, such as Public
Works Administration and Equipment Rental funds, as General Government contributes for their
operations. Cemetery personnel are added into the Parks listing, as this receives an operating subsidy;
and the non -24 hr personnel in the Public Safety Communications Fund , as this is partially funded by a
transfer of telephone utility tax from General Fund.
Excludes:
City Council
Municipal Court (No furloughs proposed, but have offered to save $15,000 in overtime by reducing the
in -court security presence)
Legal -- Prosecution
Police -- Officers, Sergeants; Corrections Officers, Sergeants
Fire -- Firefighters, Lieutenants, Captains, Battalion Chiefs
Utility Service
Police -- Captains and Lieutenants (includes 8 positions currently represented by Teamsters. City
Mgmt will explore bargaining. A 5 -day furlough approximates $18,000)
CJE 4/29/2010 4:30 PM 05 -04 -10 Agend Item Report - 2010 Furlough ce (2).xls
• From: Zais, Dick
Sent: Tuesday, April 20, 2010 3:45 PM
Importance: High
To All City Employees,
As you know, over the last several months City Management and Finance staff have been
engaged in a process to closely examine our City's economic condition with respect to incoming
General Fund revenues and the potential need for further reductions to the City's adopted 2010
expenditure budget. In doing so, we have endeavored to keep the City Council, _Union
leadership, management and the public apprised of these trends and encouraged
communication with all parties on the importance of this issue. Unfortunately, the continuing
decline in tax revenues we are experiencing has made it clear that difficult decisions must be
made now to reduce spending by approximately $1.3 million in order . to maintain a balanced
2010 budget. I want to take this opportunity to personally bring you up -to -date on these matters
and the potential impact on you.
Tax revenues are the primary sources of funding for the General Government portion of the
City's budget, which includes services like police, parks, City administration, information
systems, planning, fire, streets, etc. Most municipal tax revenues go up and down with the
economy. Since 2008,. the City's sales tax revenues have been on a downward trend. Sales
tax revenues in 2009 were lower than 2008 and are down even more in 2010.
• We are obviously not alone. Throughout Washington State and across the nation, state and
local governments, along with private employers, are experiencing significant economic stress
as a result of a nationwide recession. Substantial spending reductions and other cost
containment measures have become a way of life for all governments and private firms alike. In
order to survive, many public and private employers have been forced into bankruptcy and had
to severely reduce or eliminate operations, services and personnel.
As many of you are well aware, over the past three years the City has had to implement
significant reductions in General government services in order to maintain a balance between
revenues and services provided. Since 2008 the City has eliminated 30 full time positions in its
General Fund budget, and in addition, City employees took zero percent salary adjustments in
.2007 and 2010. The elimination of the 30 positions represents over 60,000 hours of labor no
longer being provided to the residents of our community.
Your individual and collective sacrifices with respect to the salary freezes and productivity
efforts to absorb the work lost by these positions is very much appreciated. Frankly, your
support has enabled us to continue without major disruptions in quality service to the public.
With respect to layoffs and major program reductions, Yakima has not yet been forced to take
extreme measures to cope with the recession. However, in addition to the salary freezes and
position cuts, the City has cut General Government expenses by spending significantly less on
professional services, equipment, reducing travel and training expenses, and implementing new
practices to reduce costs. Despite those efforts, the hard reality is there is not enough tax
revenue to support General Government services at current levels.
To address the continued drop in tax revenues, I am proposing to the City Council today
41)
additional cost reductions for the rest of 2010 based on the Priorities of Government model
adopted by the Council last year. Not filling some currently vacant staff positions, significantly
reducing jail costs, and eliminating some staff positions and functions would make up about
77% (approximately $1 million) of the total amount of needed cuts.
A furlough that will affect several employees whose salaries and benefits are paid for with tax
revenues is also planned in order to generate the remaining 23% of savings necessary to
balance the 2010 General Government budget. Furloughs are being used by public agencies
across the country as a means to save money and at the same time minimize impacts on
employees. As proposed, the furlough will impact over 200 General Government employees,
including management, supervisors, and front -line staff, and require 5 to 7 days of unpaid leave
this year from each of us. This sacrifice will save about $300,000 this year.
The planned furlough will not impact certain public safety employees including union
represented police officers, fire fighters, and other emergency services personnel. Non - General
Government employees also will not be affected by a furlough. Budget reductions are not
required at this time for Non - General Government services (water, wastewater, transit, refuse,
etc.) because the rates charged to customers for those services generate sufficient income to
cover the cost of providing them.
Furloughs allow for the retention of employee knowledge and experience within the City, layoffs
do not. Under the furlough option, the City retains the employee, but reduces the number of
hours they work; which provides management more flexibility in scheduling the day to day
workload and in covering unexpected employee absences (illness, accidents and other
emergencies). Management has more employees over which to spread hours of operation
under the furlough option, thereby providing better customer service even during the reduced
work hours. The furloughed employee can be more quickly and easily brought back to work if a
critical situation arises; thus, providing for fewer service interruptions to our citizens.
As the economy recovers, and decisions are made to restore services eliminated due to the
furlough, the City can do so more quickly and within available resources - without the need to
incur additional hiring /training costs.
We are still formulating the details of the furlough, e.g. when it would take effect, preparing a list
of impacted employees, and flexibility among the departments, divisions and workgroups in
administering a furlough. We will share specifics with you as they are developed and will
bargain the impacts as appropriate with respect to represented employee groups.
certainly realize that any budget reductions, including a furlough, will have adverse impacts on
individual employees as well as the City's ability to provide services to the public. I encourage
you to talk about the City's current budget situation and share your thoughts and concerns with
me, your department director or division manager, and /or union representative.
My hope is that as the economy recovers, the City's tax revenue will return to more normal
levels and additional budget and further service reductions won't be necessary. For now,
though, the City has to continue to tighten its belt as much as possible in order to weather the
storm. I sincerely appreciate your dedication and commitment as we all continue to work our
way through these difficult times. Thank you.
Dick Zais
City Manager