Issues & Questions Specified. Should the City Commission approve an amendment to the current cell phone reimbursement schedule?
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- Dorcas Jacobs
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1 AGENDA REPORT TO: Mayor & City Commission FROM: Ken Hibl, City Manager DATE: January 16, 2014 RE: Proposed Changes to Cell Phone Stipend For the Agenda of January 20, 2014 Background. In 2005 the City Commission approved the payment of a cell phone stipend of $25 to off-set personal costs endured by its employees in management positions using personally-owned cell phones for City business. In 2009 the City Commission approved a change to that stipend authorizing tiered payments based on position (see copy of att d July 20, 2009 Agenda Report and Resolution ). The use of our personal cell phones has increased dramatically in the day-to-day course of doing the City s business while cell phone charges have concurrently increased. Consequently, I ask that the City Commission consider approving the elimination of the lowest tier ($15 per month) of our current tier structure and approve the proposed two-tier system (copy att d Tab A to Resolution ) in its place. Issues & Questions Specified. Should the City Commission approve an amendment to the current cell phone reimbursement schedule? Alternatives. 1. Amend the current tiered payment structure. 2. Do not approve an amendment to the current tier structure. 3. Defer/delay decision of this matter to a subsequently scheduled City Commission meeting. Financial Impact. The current tiered structure costs the City $575 per month ($6,900 annually); the cost of the proposed tier amendment is $750 per month ($175 per month increase/$9,000 annual cost). The respective Funds have sufficient monies to defray these costs. Recommendation. I recommend that the City Commission approve the proposed amendment to our current tiered structure by adoption of Resolution (copy att d). Attachments. 1. July 20, 2009 Agenda Report. 2. Resolution w/tiered Payment Attachment. 3. Resolution w/amended Tier Payment Attachment.
2 AGENDA REPORT TO: Mayor Pat Humphrey and the Clare City Commission FROM: Ken Hibl, City Manager DATE: July 15, 2009 RE: Employee Phone Reimbursements For the Agenda of July 20, 2009 Background It is the City s expectation that all of the City s Department Heads (or in their absence, a designated individual within their department generally, their respective #2s if they have one) be accessible after duty hours, on weekends, and on holidays to respond to emergencies or other events/activities that require recall. Consequently, all of our Department Heads and their seconds-in-charge have and use personal cell phones for this purpose. Additionally, privately-owned cell phones are the primary means of communication that some of our Department Heads (in particular, our Director of Public Works and our Police Chief) use on a daily basis in conducting business/performing their assigned responsibilities. We currently pay our Department Heads and select department seconds-in-charge a $25 permonth stipend to reimburse them for costs they incur for their respective, individual cell phone service. This stipend falls far short of actual costs incurred by a significant number of our department heads and #2s, thus I ask the City Commission to consider a change in our current practice of paying a $25 per month flat-rate for cell phone reimbursement. In lieu of our current reimbursement practice, I am recommending a tiered system (copy of proposed tier system att d) of $15, $50, and $75 per month with the caveat that if any employee entitled to the cell phone reimbursement on any given month exceeds the reimbursement amount they are paid, the City will pay them the excess amount if provided detailed documentation (specifically, an itemized statement from their respective cell phone provider) by the employee verifying that the additional amount was used to conduct City business. In formulating this recommendation, we (the City staff) have considered a number of other possible alternatives to our current practice, to include the issuance of City-purchased cell phones. This topic was discussed and researched on the state-wide city/county/township listserve to determine how other state municipalities approach this subject; we ve discussed the matter with our city attorney; and we ve conferred with a local tax consultant to ensure that the proposed recommendation was the best possible recommendation while concurrently ensuring efficiency and effectiveness of City operations. Issues & Questions Specified Should the City Commission approve the revised employee phone reimbursement proposal? 1
3 Alternatives 1. Approve the recommended tiered employee phone reimbursement proposal. 2. Approve an amended employee phone reimbursement policy. 3. Direct that the current $25 per month reimbursement practice continue. 4. Discontinue any/all employee phone reimbursements. 5. Set this matter aside for further discussion, consideration, and decision at a future, scheduled meeting. Financial Impact The City s current employee phone reimbursement program costs the City approximately $325 monthly ($3,900 annually); the tiered proposal would cost the City approximately $525 monthly ($6,300 annually). Funding for the current and proposed reimbursement is appropriated for the respective funds (General, Fire, Water, Sewer, etc.) in the telephone and communication lines of those funds. We have appropriated amounts in each of those funds, but at this juncture in our new fiscal year it is too early to project whether the amounts we budgeted will be sufficient to cover the proposed new reimbursement program. If the Commission approves the proposal, we will monitor each of the activities of the respective funds throughout the year and recommend any needed adjustments. Recommendation I recommend that the City Commission approve the recommended tiered employee phone reimbursement proposal by adoption of the proposed Resolution (copy attached). Attachments 1. Proposed Tiered Phone Reimbursement. 2. Resolution
4 Tier 1 - $15 per month* Water/Wastewater Superintendent Water/Wastewater Asst-Superintendent Fire Chief City Treasurer/Finance Director City Clerk Tier 2 - $50 per month* DPW Deputy-Director Recreation Director Two Police Sergeants Inspection & Code Enforcement Director City Manager Tier 3 - $75 per month* Director of Public Works Police Chief Tab A to Resolution Proposed Employee Phone Reimbursement *Employees may receive additional reimbursement of actual costs on a monthly basis contingent upon presentation of a detailed and itemized statement from their respective phone provider identifying those individual costs incurred in the conduct of official City business.
5 RESOLUTION A RESOLUTION OF THE CLARE CITY COMMISSION APPROVING AN AMENDED TIERED EMPLOYEE PHONE REIMBURSEMENT PROGRAM. WHEREAS, it is the City s expectation that employees designated as key personnel be accessible after duty hours, on weekends, and on holidays to respond to emergencies or other events/activities requiring recall: and WHEREAS, privately-owned cell phones are the primary means of communication that said key employees utilize on a daily basis in conducting business/performing their assigned responsibilities and for recall; and WHEREAS, the City currently pays said key personnel a tier-based stipend of $15, $50, or $75per-month dependent upon their respective supervisory position(s), thus reimbursing them for costs they incur for their respective, individual cell phone service; and WHEREAS, the necessity for City supervisory employees to use their personal cell phones has dramatically increased since implementing the 2009-stipend schedule while cell phone use costs have concurrently increased, thereby creating a situation of the current stipend paid falling far short of actual costs incurred; and WHEREAS, the City Staff has recommended a revision to the current tier to help rectify said situation; and WHEREAS, the City Commission has reviewed said proposal and deems it reasonable, fair, and equitable. NOW THEREFORE BE IT RESOLVED THAT the City Commission of the City of Clare hereby approves an amended tiered employee phone reimbursement program, the terms and conditions of said program as outlined in Tab A of this Resolution. ALL RESOLUTIONS AND PARTS OF RESOLUTIONS INSOFAR AS THEY CONFLICT WITH THE PROVISIONS OF THIS RESOLUTION BE AND THE SAME ARE HEREBY RESCINDED. The Resolution was introduced by Commissioner and supported by Commissioner. The Resolution declared adopted by the following roll call vote: YEAS: NAYS: ABSENT: Resolution approved for adoption on this 20 th day of January Diane Lyon, City Clerk
6 Tab A to Resolution Proposed Employee Phone Reimbursement Tier 2 - $50 per month Water/Wastewater Superintendent Water/Wastewater Asst-Superintendent Fire Chief City Treasurer/Finance Director City Clerk DPW Deputy Director Recreation Director Parks Supervisor Police Supervisor Positions Code Enforcement City Manager Tier 3 - $75 per month Director of Public Works Police Chief
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