HomeMy WebLinkAboutAgenda - Item 8-q - Amendment to the Code of Ordinances Regarding Retiree Health Insurance, Anniversary Leave and Merit Pay
ORANGE COUNTY
BOARD OF COUNTY COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: June 19, 2018
Action Agenda
Item No. 8-q
SUBJECT: Amendment to the Code of Ordinances Regarding Retiree Health Insurance,
Anniversary Leave and Merit Pay
DEPARTMENT: County Attorney
ATTACHMENT(S): INFORMATION CONTACT:
1. Draft Ordinance
2. Adoption Resolution
Brenda Bartholomew, (919) 245-2552
John Roberts, (919) 245-2318
PURPOSE: To consider authorizing an amendment to Chapter 28 of the Code of Ordinances
related to retiree health insurance, anniversary leave and merit pay.
BACKGROUND: The Manager recommended and the Board of Commissioners agreed to make
changes to allow the continuance of retiree health insurance if a retiree elects to work for another
local government, adding eight hours annually of “anniversary leave” for permanent employees,
and adding Merit Pay to employee base salaries permanently.
Currently if a retiree goes to work for another local government in a position that offers group
health insurance, the retiree’s County-provided insurance is discontinued and the retiree cannot
regain access to that insurance. This change to 28-36(b)(7) will allow the retiree to elect to
accept the other local government’s coverage or remain with the County’s coverage. It will also
allow the retiree to regain access to the County’s coverage if the retiree initially selects the other
local government’s coverage and that coverage is subsequently terminated.
Currently Merit Pay, 28-61, is only offered as a one-time annual award based on employee
performance. This change will add Merit Pay to an employee’s base salary equal to the hourly
rate of the award.
Anniversary Leave, 24-34(i) will be added to the Ordinance as a form of reward for service for
permanent employees. Eight hours will be awarded on the anniversary date of permanent full
time employees and a pro-rated number of hours will be added for permanent part-time
employees. Once awarded this leave will be considered annual leave and will not increase, but
will remain a flat eight hours or pro-rated number of hours for permanent part-time employees.
As a purely technical correction section, 28-34(c)(2) is presented for amendment to correct minor
discrepancies between the Ordinance language regarding hours accrued and the actual
mathematical leave calculations of KRONOS, the County’s primary workforce management
software. Amending this chart will bring the Ordinance totals in line with KRONOS calculations.
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FINANCIAL IMPACT: There is no financial impact for FY 2018-19. Merit Pay applied to
employee base salaries will compound each fiscal year thereafter. Currently, Merit Pay is
approximately $750,000 each fiscal year.
SOCIAL JUSTICE IMPACT: The following two Orange County Social Justice Goals are
applicable to this agenda item:
• GOAL: FOSTER A COMMUNITY CULTURE THAT REJECTS OPPRESSION AND
INEQUITY
The fair treatment and meaningful involvement of all people regardless of race or color;
religious or philosophical beliefs; sex, gender or sexual orientation; national origin or
ethnic background; age; military service; disability; and familial, residential or economic
status.
• GOAL: ENSURE ECONOMIC SELF-SUFFICIENCY
The creation and preservation of infrastructure, policies, programs and funding necessary
for residents to provide shelter, food, clothing and medical care for themselves and their
dependents.
RECOMMENDATION(S): The Manager recommends the Board approve and authorize the
Chair to sign the resolution adopting the ordinance detailing the amendments.
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ORD-2018-027 Attachment 1
Amendments to Chapter 28 of the Code of Ordinances
Section 28-34 is amended by changing the chart values in subsection (c)(2) and adding a new
subsection (i) as follows:
Sec. 28-34. - Annual leave.
(c)(2) The earning rate for a Permanent, Provisional, or Time-Limited Full Time employee regularly
scheduled to work 40 hours each workweek is as follows:
Total Years of
Orange County
Service
Annual Leave
Hours Earned
Per Pay Period Per Year
Less than 2 4.84 125.84
2 but less than 5 5.58 145.08
5 but less than 10 6.68 173.68
10 but less than 15 7.80 202.80
15 but less than 20 8.90 231.40
20 or more 10.02 260.52
(i) Anniversary Leave – Additional Annual Leave
(1) An additional eight hours of annual leave for all permanent employees shall be awarded
on an employee’s anniversary date, prorated for permanent part-time employees based
on an employee’s full time equivalent.
(2) Anniversary leave is defined as an additional eight hours of annual leave and may be
used in the same manner as annual leave. Anniversary leave is not earned based on
years of service as shown in Section 28-34 (c)(2).
(3) There is not a separate leave category for “anniversary leave” that allows employees to
request “anniversary leave.” Once awarded anniversary leave is treated as, and added
to, annual leave.
Section 28-36 is amended by changing the language in subsection (b)(7) as follows:
Sec. 28-36. – Health Insurance
(b)(7) Eligible Retiree Returning to Work in NC Local Government. If the retiree returns to work with
another North Carolina Local Government employer in a position which offers group health insurance
coverage (whether the employee elects it or not), Orange County cancels the retiree's health insurance
coverage through Orange County and such coverage may not be reinstated.
If a retiree returns to work with another North Carolina Local Government employer in a position that
offers group health insurance coverage, the retiree may elect coverage at another local government or
continue coverage with Orange County. If a retiree chooses to elect coverage at another local
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government and its coverage is terminated; coverage may be reinstated with Orange County. The
County Manager shall establish a policy of guidelines and criteria for eligibility and reinstatement of such
coverage.
Sec. 28-61 is deleted in its entirety and replaced with:
Sec. 28-61. - Meritorious service awards.
(a) Merit Pay
(1) Subject to the Board of Commissioners’ annual approval of funding, the dollar amount of the
award shall be as reflected in the annual operations budget.
(2) Effective July 1, 2018, Merit Pay will be awarded as part of an employee’s annual salary.
(3) Merit Pay, if awarded, will be effective on an employee’s Performance Evaluation Date which
in most cases will coincide with an employee’s original date of hire or anniversary date. If an
employee’s current Performance Evaluation Date is different than an employee’s original date
of hire; an employee will be evaluated at the current Performance Evaluation Date not the
original date of hire or anniversary date.
(4) If an employee’s salary goes over the maximum salary within the respective grade salary
range, the hourly rate will be applied and the salary will be over the maximum salary.
(5) Merit Pay, if awarded, is to be added to the base salary of an employee’s salary equal to the
hourly rate of the amount awarded.
(6) Merit Pay is subject to required statutory deductions, including federal and state income tax
withholding, social security, and retirement.
(7) The County Manager shall establish a policy of guidelines and criteria determining eligibility
for Merit Pay and processes for the review and final approval of Merit Pay.
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RES-2018-046 Attachment 2
RESOLUTION OF AMENDMENT
A RESOLUTION AMENDING CHAPTER 28 OF THE ORANGE COUNTY CODE
OF ORDINANCES
Be it Resolved and Ordained by the Board of Commissioners of Orange County, North
Carolina:
WHEREAS, the Board of Commissioners has determined a change is necessary to the applicability
of retiree health coverage necessitating an amendment to the Personnel Ordinance; and
WHEREAS, the Board of Commissioners has determined a change is necessary to the structure
and applicability of merit awards requiring an amendment to the Personnel Ordinance.
NOW THEREFORE BE IT ORDAINED, that the Code of Ordinances, Orange County, North
Carolina, Chapter 28, is hereby amended by amending sections §28-36 and §28-61, which
amended sections read as shown in the attached revised Personnel Ordinance.
This Amendment shall become effective upon adoption.
Adopted by the Orange County Board of Commissioners this 19th day of June, 2018.
By: Attest:
_______________________________ _________________________________
Mark Dorosin, Chair Donna Baker, Clerk to the Board
Orange County Board of Commissioners
[SEAL]
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