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HomeMy WebLinkAboutAgenda - 06-21-2011 - 5xORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: June 21, 2011 Action Agenda Item No. ~-x SUBJECT: 2010-11 County Employee Performance Award DEPARTMENT: County Manager, Human Resources and Financial Services PUBLIC HEARING: (Y/N) No ATTACHMENT(S): INFORMATION CONTACT: Frank Clifton, County Manager, 245- 2306 Katherine Cathey, Interim Human Resources Director, 245-2553 Clarence Grier, Financial Services Director, 245-2453 PURPOSE: To consider approval of a "non-recurring" one-time performance award for qualifying County employees. BACKGROUND: While a limited number of employees have been promoted or reclassified and received an increase in pay, most County employees have not received an increase in base pay since FY 2008-09. During the FY 2010-11 budget process, the County Manager recommended giving further consideration to this issue and determining whether or not "non- recurring" financial recognition could be provided to County employees. In December 2010, the Manager recommended for the Board's consideration aone-time performance award in the amount of $600 in recognition of overall performance by County employees. The Board decided to table consideration of this item until no sooner than May 26, 2011 as part of the FY 2011-12 budget process. Economic conditions have not improved significantly enough over the past few years to budget an increase for permanent employee salaries in FY 2011-12. At the June 14, 2011 budget work session, the Board discussed its support for awarding employees aone-time bonus in the amount of $500 to recognize employee performance during FY 2010-11. Dedicated County employees have continued to provide excellent service to County residents, and faced with decreased staffing and increased demands for service, many have assumed additional responsibilities. Funding fora "non-recurring" one-time performance award is available from costs savings achieved in FY 2010-11 through the six-month hiring freeze and voluntary furlough programs. The policies that were approved by the Board as part of the FY 2010-11 budget process have been successful in reducing costs for personnel services. The policies included the continuation of various steps to ensure that budgetary objectives would be met, including the following: 1. Staff closely reviewed all operations for staffing overlaps and consolidated processes to reduce staffing requirements. 2. Most vacant positions (except for the Sheriff's Department and Emergency Services) remained unfilled for a period of six months. Workloads were reviewed for redistribution to existing staff. 3. Qualified staff was reassigned to other County service functions when demand decreased for their primary function. For example, building inspectors were reassigned to other functions while construction activity remained depressed. 4. Each vacant position was evaluated, and if expanded responsibilities could be assumed, they were included in the recruitment process for new hires. 5. Staff closely monitored overtime use to evaluate where processes and schedules could be modified to reduce overtime requirements. County staff's efforts have produced good results. Budget calculations indicate projected savings in personnel costs of $2 million for FY 2010-11. As part of the FY 2010-11 budget discussions, the Manager's recommendation to the Board was to reconsider employee compensation issues 1) once results of last year's financial performance (audit) were known; and 2) after County staff had time to analyze the current fiscal year. The Manager believes the County now has enough information to act and recommends that the Board approve aone-time performance award of $500 for qualifying employees. Staff has performed at very high levels during a very difficult period and has assumed more responsibilities and met unique demands when needed. In addition to the efforts of permanent County employees, many dedicated temporary employees have contributed to the County's successful performance during the past year. The Manager recommends that all employees actively employed as of June 3, 2011 receive the performance award and that employees hired on or after October 1, 2010 and/or working less than afull-time schedule receive a prorated amount. FINANCIAL IMPACT: The financial aspects of this proposed action are as follows: The funding for this performance award would. be paid out of existing departmental salary and benefit allocations within the FY 2010-11 Budget (i.e. no additional budget allocations by the Board would be required). As the Board will recall, the County budgeted salaries at 100% for the current fiscal year. This action, in conjunction with the six-month hiring delay and other actions noted above, has generated significant personnel savings to fund the recommendation; and 2. Funding this proposal based upon 856 budgeted positions as of April 30, 2011 would have a total maximum financial impact estimated at $490,000. It should be noted that the $490,000 includes the performance award of $500 and the County's costs related to FICA (7.65%) and North Carolina Local Government Retirement System contributions (6.43%). RECOMMENDATION(S): The Manager recommends that the Board: Recognize overall County employee performance effort with approval of a "non-recurring" one-time performance award for all employees actively employed as of June 3, 2011. a. Full-time permanent employees hired prior to October 1, 2010 will receive a performance award of $500. b. Permanent employees hired on or after October 1, 2010 will receive a prorated amount of the $500 award according to the following criteria: • Hired April 1, 2011 through June 3, 2011 - $125 • Hired January 1, 2011 through March 31, 2011 - $250 • Hired October 1, 2010 through December 31, 2010 - $375 c. Permanent employees who work less than 40 hours per week will receive a prorated amount of the performance award. (Example: an active permanent employee who works 30 hours per week and receives 75% of the full-time salary for the position would receive $375 prior to any tax and retirement deductions). d. Permanent employees on leave without pay are eligible for the award provided they were employed by the County on June 3, 2011. e. Currently active temporary employee who received a paycheck during the months of May or June 2011 will receive a prorated amount of the $500 award according to the following criteria: • Worked less than 500 hours during FY 2011-12 - $125 • Worked 500 or more but less than 1,000 hours during FY 2011-12 - $250 • Worked 1,000 or more but less than 1,500 hours during FY 2011-12 - $375 • Worked 1,500 or more hours during FY 2011-12 - $500 f. Individuals who are paid by the State and/or are considered State employees are not eligible for the award. 2. Authorize this employee performance award for payment on June 24, 2011 as a separate payment to each employee in recognition of their efforts and commitment to Orange County.