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HomeMy WebLinkAboutG- 5 Staff Report Militay Duty Operation Enduring FreedomCONSENT CALENDAR TO: THE HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: VICTORIA CROSS, DIRECTOR OF HUMAN RESOURCES VIA: RICK COLE, CITY MANAGER DATE: APRIL 7, 2003 SUBJECT: RESOLUTION AUTHORIZING TEMPORARY CONTINUATION OF BENEFITS AND SALARY FOR EMPLOYEES CALLED TO MILITARY DUTY IN SUPPORT OF “OPERATION ENDURING FREEDOM” RECOMMENDATION It is recommended the City Council approve the attached resolution authorizing a Temporary Continuation of salary and benefits for city employees called to active duty in connection with the nation’s response to the terrorist attack on the United States of America – “Operation Enduring Freedom”. BACKGROUND As directed by City Council on March 17, 2003, staff has created a resolution authorizing a temporary continuation of salary and benefits for city employees called to active duty in response to the events of September 11, 2001. The City of Azusa is currently in compliance with the Federal and State law regarding military leaves. While current law does guarantee the reinstatement of reservists, once their military assignment has been completed, it only requires that agencies provide those individuals with continued salary for the first 30 days of duty. In consideration of this potential loss of income, municipalities in the San Gabriel Valley and throughout Southern California are providing additional temporarily paid leave and continuation of benefits for employees recalled to active duty to defend the United States of America. Typically, the normal tour of duty to which a reservist may be ordered to serve, without congressional action, is six (6) months. As such, an employee called to active duty potentially results in a financial hardship for that individual and their family. The attached resolution authorized by City Council, would allow employees who are recalled to be compensated by the City for the difference between the amount employee would receive from the regular city gross bi-weekly wage (not including overtime) and the amount the employee receives from their military service including all allowances. The continuation of salary and benefits to an employee would extend for an additional 150 days beyond the required 30 days under Federal and State law. This action in total may not exceed 180 days (a total of 6 months). Additionally, the employee’s health benefits, retirement and leave accruals would be continued for the employee and their family in the manner it would be provided if the employee was still actively employed by the City. In order to access this temporary continuation of salary and benefits, the employee must provide documentation of their military pay in a form acceptable to both the Director of Human Resources and Director of Finance. Under these provisions, the employee will continue to receive the Flexible Benefit Plan for a total period, not to exceed six (6) months commencing with the date the employee is ordered to report for duty for active service. At the conclusion of the six (6) months, the employee may elect to continue their health benefit coverage under the provisions of C.O.B.R.A. (maximum of an additional 18 months paid by the employee). Underwriting policy for the City’s Long Term Disability (LTD), Life Insurance and Accidental Death & Dismemberment (AD&D) plans require that an employee be “actively at work” for continued coverage or have as an exclusion Military Service. Due to these carrier restrictions, coverage under these plans is suspended during the period the employee is on Military Leave of absence for active service in the uniformed service during time of National or State emergency. This would be a temporary modification, authorized by City Council, applied to the City’s existing Military Leave Policy. As such, the temporary salary continuation would only be provided to those individuals who are called to active duty as a result of the President’s Executive Order specific to the current military action (“Operation Enduring Freedom”). And as cited under the City’s Military Leave Policy an employee must be in City employment for a period of one (1) year, upon being called for military duty, to qualify. Lastly, as this is a temporary continuation additional City Council approval would be needed to authorize any extension of this temporary provision. Future military actions would require authorization by City Council to extend benefits and continue salary beyond the City’s existing Military Leave Policy. FISCAL IMPACT It is estimated that the City may experience slight salary saving as the fiscal impact would be the cost of salary and benefit continuance minus the employee’s military pay. The salary saving could then be utilize to fund or offset costs to underfill or temporarily fill the vacant position. RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA AUTHORIZING TEMPORARY CONTINUATION OF BENEFITS AND SALARY FOR EMPLOYEES CALLED TO ACTIVE MILITARY DUTY IN SUPPORT OF “OPERATION ENDURING FREEDOM” WHEREAS, Section 395.01 of the California Military and Veterans Code (the “CMV Code”), requires public agencies, including the City of Azusa, to continue to compensate city employees who have been employed for a period of at least one year by the City prior to being called to active military training, inactive duty training, encampment, naval cruises, special exercises or the like, for the first 30 day period of absence from work in any fiscal year when such employees are so called; and WHEREAS, notwithstanding the provisions of Section 395.01, Section 395.03 of the CMV Code specifically acknowledges the right of public agencies, including cities, to authorize payment of compensation in an amount greater than the pay for 30 calendar days by resolution of the legislative body; and WHEREAS, on September 11, 2001, the United States of America was attached by terrorists and has responded to that attack by mobilizing United States Reserve Military and members of the California National Guard to serve the nation in a military operation known as “Operation Enduring Freedom”; and WHEREAS, the City of Azusa is supportive of the employees of the City who have been called into active military duty and believes that is in the public interest to provide these employees with continuing employee benefits and that portion of their City base salary which may be lost due to a leave of absence from City service for active military duty; and WHEREAS, it is the interests of the health, safety and general welfare of the City of Azusa to extend the time during which compensation is provided for those called to serve in Operation Enduring Freedom as permitted by California law. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Azusa, that it adopt in full the terms and conditions contained in the said staff report dated April 7, 2003. PASSED AND ADOPTED by the City Council of the City of Azusa at a regular meeting held on the 7th day of April 2003. _____________________________________________________ MAYOR OF THE CITY OF AZUSA I HEREBY CERTIFY that the foregoing Resolution was duly adopted at a regular meeting of said City Council on the 7th day of April 2003, by the follow roll call vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS _____________________________________________________ CITY CLERK OF THE CITY OF AZUSA