HomeMy WebLinkAboutCouncil Agenda StatementCITY OF NATIONAL CITY, CALIFORNIA
COUNCIL AGENDA STATEMENT
MEETING DATE: March 15, 2011
AGENDA ITEM NO.
ITEM TITLE:
Resolution of the City Council of the City of National City amending the vacation accrual benefit for Executive employees by
instituting an accumulation cap at a maximum of three times the annual accrual rate; and amending the vacation "sell -back" benefit for
Management employees, allowing for the "sell -back" of accumulated vacation credits subject to the approval of the City Manager.
PREPARED BY: Stacey Stevenson
PHONE: 336-4308
EXPLANATION: Ofr.War
The compensation plan currently in place for the Executive employee group allows for the accrual of vacatio redits with no maximum
accumulation or cap. Given that the accumulation of vacation credits is carried as unfunded liability, as another step towards fiscal
sustainability, staff recommends the establishment of an accumulation cap. Without a cap, vacation credits not only grow in numbers but
also in value or cost of those credits. Paid out during times of vacation "sell -back" or employee separation, unused vacation credits are
paid out at the employee's hourly rate at the time of cash out. As such, if an employee is promoted or receives a cost of living adjustment,
the value of the vacation credits increases.
DEPARTMENT: Hurn�-source
APPROVED BY:
Based on the above, staff recommends the establishment of an accumulation cap at a maximum of three (3) times an Executive
employee's annual accrual, effective January 1, 2012. The annual accrual for Executive employees is 10 hours per month for the first ten
years of service and 13.33 hours per month thereafter.
The compensation plan currently in place for the Management employee group restricts the "sell -back" of vacation credits to 80 hours of
accumulated vacation credits per fiscal year. Again in an effort to reduce the City's unfunded liability staff recommends that the vacation
"sell -back" benefit be amended to allow Management employees to "sell -back" accumulated vacation credits at the discretion of the City
Manager, consistent with the benefit available to members of the Executive employee group.
FINANCIAL STATEMENT:
ACCOUNT NO.
ENVIRONMENTAL REVIEW:
N/A
ORDINANCE: INTRODUCTION:
STAFF RECOMMENDATION:
Adopt the resolution
FINAL ADOPTION:
BOARD / COMMISSION RECOMMENDATION:
N/A
APPROVED: Finance
APPROVED: MIS
ATTACHMENTS: