Title
Resolution Adopting New Pay Classification Plan for the City of Foley
Summary
DESCRIPTION OF TOPIC: (who, what, when, where, why, and how much)
Resolution Adopting New Pay Classification Plan for the City of Foley
SOURCE OF FUNDING:
Please provide the amount requested: Not to exceed budgeted amount of $40,293
Is this a budgeted item? Yes
Please provide the budgeted amount: $40,293 Account No. 01-660-1000
If budgeted, is this a capital purchase, capital project, or special fund? n/a
Was this item included in the Fiscal Year Capital Projects Plan? No
If yes, please provide the amount included in Capital Projects Plan: n/a
Body
WHEREAS, resolution #4991-12 approved The Archer Company to conduct a study of the City's Pay Classification Plan including job analysis, new job descriptions, and a new Pay Classification Plan, and
WHERAS, the study has been completed and audited by Human Resources and the City desires to adopt the new Pay Classification Plan and associated job descriptions, and
WHEREAS, sufficient budgeted funds in the amount of $40,293, are available in account #01-660-1000 (Reserve for Salary Increases) to support the necessary adjustments to raise certain employees to the minimum of their new pay grade in the new Pay Classification Plan as necessary based upon their current position, and
WHEREAS, upon job analysis of some of the City's positions, there are certain positions which are moving from non-exempt to exempt status under Federal FLSA rules and regulations, and
WHEREAS, the movement of some positions from non-exempt to exempt status will create an estimated $39,400 in annual overtime savings based upon a three year average, and
WHEREAS, the City desires to take a portion of the estimated $39,400 in overtime savings, in the amount of $20,000 annually, and to spread that pool of overtime savings to employee's whose salaries are moving from non-exempt to exempt FLSA status. The spread of the $20,000 savings will be accomplished by a percentage allocation methodology which utilizes a per employee three year average of overtime hours worked over their annual base hours. A percentage of the total average hours is then calculated and applied per employee with a minimum of 100 hours per employee applied. The employee percentage is then applied back to the $20,000 to spread the savings to the salaries of the effected employees who are moving from non-exempt to exempt status. The effected department's overtime accounts will be reduced by this same amount, so the net effect will be zero and no allocation of funds is necessary for this action. The overtime budgets for next fiscal year will also recognize this reduction in overtime dollars for effected departments.
NOW THEREFORE BE IT RESOLVED that the City Council of the City of Foley, Alabama, as follows:
SECTION 1: The Pay Classification Plan as attached, dated 05/15/2013, is hereby adopted by the City of Foley and the respective new job descriptions for each position will be distributed to supervisors for review with their employees and for signature of receipt for the personnel file of each employee.
SECTION 2: Approves use of the "Reserve for Salary Increases" account #01-660-1000, to adjust certain employees in positions whose pay is below the minimum pay grade in the new Pay Classification Plan and approves adjusting these employees to the minimum pay grade in their new respective pay grades under the signature of the Mayor. The Human Resources Division will provide to the Finance Division a breakdown of transfer of funds to departmental accounts to support this action as necessary.
SECTION 3: Authorizes the Human Resources Division, under the signature of the Mayor, to spread a $20,000 portion of the estimated $39,400 in overtime savings, to employee's salaries whose positions are moving from FLSA non-exempt to exempt status, utilizing a percentage methodology based upon a prior three year average of overtime hours worked per employee, with a 100 hour minimum for each employee effected by the FLSA changes. Departmental overtime accounts will be reduced by this same amount in the current year and next fiscal year budgets. The Human Resources Division will provide to the Finance Division a breakdown of transfer of funds to departmental accounts to support this action as necessary.
SECTION 4: Authorizes the pay adjustments to take effect with the pay period beginning May 21, 2013.
SECTION 5: This Resolution shall become effective immediately upon its adoption as required by law.