HomeMy WebLinkAbout1998-10-05 City Council (20)City of Palo Alto
City Manager’s Report
TO:HONORABLE CITY COUNCIL
FROM:CITY MANAGER DEPARTMENT: HUMAN RESOURCES
DATE:
SUBJECT:
OCTOBER 5, 1998 CMR:389:98
APPROVAL OF A BUDGET AMENDMENT ORDINANCE IN THE
AMOUNT OF $60,000 FOR RECRUITMENT ASSISTANCE
RECOMMENDATIONS
Staff recommends that Council approve a Budget Amendment Ordinance in the amount of
$60,000 to provide the necessary funding for additional temporary staff and recruitment
expenses to assist in the filling of positions and reduce the backlog of open staff’mg requisitions.
BACKGROUND
In recent months, the number of staffing vacancies for the City has increased steadily to more
than twice the normal vacancy rate. The number of vacancies, which usually runs at about 30
positions,, has recently been running between 50 and 70. The increase is primarily the result of
scarce labor market conditions characterized by historically low levels of unemployment. The
problem recruitment areas include technical positions, skilled field positions, administrative and
police officer positions.
The vacancy problems have been exacerbated by higher turnover levels in some departments,
including Planning (13.3 percent) and Administrative Services (15.1 percent). While City
turnover rates are low by comparison with private sector employers, the turnover rate for the
most recent 12 months.was 8,0 percent, compared to 8.2 percent dung Fiscal Year 96-97, and-
5.8 percent in Fiscal Year 95-96. Other factors adding tothe current vacancy problems include
retirements as a result of an aging workforce, and the addition of new positions and
reclassifications in the budget. Top management positions have been hit by retirements and
turnover, resulting in replacement of four department head positions during 1998.
Staff is currently working on longer term solutions for recruitment difficulties, such as
substantially lower numbers of qualified .police officer applicants and how to better retain
employees who face long commutes. The development of an Employee Referral Incentive
Program is in progress and will shortly be submitted to Council for approval and funding. The
program will provide incentives for employees to assist .in the recruitment of qualified
CMR:389:98.Page 1 of 2
candidates for specified hard,to-fill positions. Staff believes this program will be especially
helpful in the recruitment of police officer positions.
In the meantime, staff is proposing additional funding in the amount of $60,000:$40,000 for
hiring a temporary recruiter, and $20,000 for additional recruitment expenses. With the addition
of a part-time recruiter working 24 hours a week, it is projected that staffwill be able to reduce
the vacancy backlog to normal levels within a six-month period.
RESOURCE IMPACT
A Budget Amendment Ordinance in the amount of $60,000 is requested to cover the cost of
staffing a temporary recruiter and other associated costs. The expenses will be funded from the
Budget Stabilization Reserve.
POLICY IMPLICATIONS
This report does not represent any change to existing City policies.
ENVIRONMENTAL ASSESSMENT
This is not a project under the California Environmental Quality Act (CEQA).
ATTACHMENTS
Attachment A: Budget Amendment Ordinance
PREPARED BY: Adele Manager
DEPARTMENT HEAD REVIEW:
of Human I
CITY MANAGER APPROVAL:
Manager ,
¯ CMR:389:98 Page 2 of 2
ORDINANCE NO.
ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO
AMENDING THE BUDGET FOR THE FISCAL YEAR 1998-99 TO
PROVIDE AN ADDITIONAL APPROPRIATION OF $60,000 FOR
RECRUITMENT ASSISTANCE
WHEREAS, pursuant to the provisions of Section 12 of Article
III of the Charter of the City of Palo Alto, the Council on June
22, 1998 did adopt a budget for fiscal year 1998-99; and
WHEREAS, the staffing vacancies for the City have increased
steadily to more than twice the normal vacancy rate; and
WHEREAS, the vacancy problems have been exacerbated by higher
turnover levels, retirement and the addition of new positions and
reclassifications in the budget; and
WHEREAS, additional funding is needed to hire a temporary
recruiter and to cover additional recruitment expenses; and
WHEREAS, City Council authorization is needed to amend the
1998-99 budget as hereinafter set forth.
NOW, THEREFORE, the Council of the City of Palo Alto does
ORDAIN as follows:
.S.ECTION ..i. The sum of Sixty Thousand Dollars ($60,000) is
hereby appropriated to non-salary expenses in the Workforce and
Recruitment Functional Area in the Human Resources Department, and
the Budget Stabilization Reserve is correspondingly reduced.
$~u¢_~. This transaction will reduce the General Fund
Budget Stabilization Reserve from $14,949,065 to $14,889,065.
SECTION 3. As specified in Section 2.28.080(a) of the Palo
Alto Municipal Code, a two-thirds vote of the City Council is
required to adopt this ordinance.
~_~. The Council of the City of Palo Alto hereby finds
that this is not a project under the California Environmental
Quality Act and, therefore, no environmental impact assessment is
necessary.
~_~. As provided .in Section 2.04.350 of the Palo Alto
Municipal Code, this ordinance shall become effective upon adoption.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
ATTEST:APPROVED:
City Clerk Mayor
APPROVED AS TO FORM:City Manager
Senior Asst. City Attorney Director of
Services
Administrative
Director of Human Resources
S : \ASD \ BUDGET \ 9 8 9 9 BU~ 1 \ 9 9 BAO~ 1 \WORDPERF \ RECRUITM. WPD