AGENDA #4w

MEMORANDUM

TO:                  Mayor and Town Council

FROM:            W. Calvin Horton, Town Manager

SUBJECT:      Administrative Adjustment to Leave Earning Rates for Four Department Heads

DATE:            June 26, 2006

PURPOSE

The purpose of this memorandum is to propose an administrative adjustment to the leave earning rate for four department heads. This adjustment is proposed to correct an inequity between the leave earning rate for these employees and the leave earning rate for the three most recently hired department heads.

BACKGROUND

In the Ordinance amendments submitted to the Council in Agenda Item #4i, one of the changes recommended is that the leave accrual rates for department heads, deputy and assistant managers be set at 20 days per year at the beginning of employment. 

Prior to 1998, all department heads earned 20 days of leave per year.  Leave earning rates for department heads were changed in 1998.  Section 14-66 of the Town Code now states:  

“Where important for recruitment of new department heads or other key personnel, the town manager may authorize a new employee to earn greater than twelve (12) days per year of annual leave upon employment.”

DISCUSSION

Seven department heads were recruited after the 1998 ordinance change.  Because of misinformation provided by the staff at the time, the Manager declined to authorize the higher level of leave requested by four of the department heads.  Three department heads were authorized leave at the rate of 20 days per year after the Manager became aware of the ordinance provision in 2004.

We believe that all department heads should earn the same amount of leave.  We recommend that the leave accrual earning rates of the four department heads now earning less than 20 days of leave accrual be adjusted to twenty days per year, retroactive to December 6, 2004.  December 6, 2004 is the date upon which the Manager began approving requests for higher leave as a condition of employment.

The recommended adjustment would resolve an inequity.

RECOMMENDATION

That the Council adopt the attached resolution.