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Replace Part-Time with Full-Time Bus Operator Positions Copyrighted October 15, 2018 City of Dubuque Action Items # 3. ITEM TITLE: Replace Part-Time with Full-Time Bus Operator Positions SUMMARY: City Manager recommending that three part-time positions be eliminated December 1 , 2018 and replaced with three full-time positions effective that same date. SUGGESTED DISPOSITION: Suggested Disposition: Receiveand File;Approve ATTACHMENTS: Description Type Replace Part-Tme with Full-Tme Bus Operator City Manager Memo Positions-MVM Memo Staff Memo Staff Memo THE CITY OF Dubuque � AIFA�erlwGh UB E '�� III► Masterpiece on the Mississippi Z°°'�w'2 7A13 2017 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Replace Part-Time with Full-Time Bus Operator Positions DATE: October 11 , 2018 Transportation Services Director Candace Eudaley-Loebach recommends that three part-time positions be eliminated December 1 , 2018, and replaced with three full-time positions effective that same date. This request is time sensitive as there are not a sufficient number of employees to cover basic service without paying overtime to full- time employees and/or risk employees exceeding the hours cap or having to be laid off. The Jule has a set number of hours of service, so creating a full-time position does not add more hours or FTE's to the Jule's budget; it reduces the number of employees needed to provide the approved level of services. The Jule currently provides 61 ,658 annual hours of bus service to the public with 74°k being provided by 51 part-time drivers and 26°k being provided by 8 full-time drivers. The Fiscal Year 2019 cost ($53,211) of this change will be covered by General Fund Operating Budget savings from the close of the Fiscal Year 2018 budget year. The Fiscal Year 2020 cost $10,281) will need to be budgeted through next year's budget process. I concur with the recommendation and respectfully request Mayor and City Council approval. �� �� ��� Mic ael C. Van Milligen �� � MCVM:jh Attachment cc: Crenna Brumwell, City Attorney Teri Goodmann, Assistant City Manager Cori Burbach, Assistant City Manager Candace Eudaley-Loebach, Transportation Services Director Jennifer Larson, Budget Director THE CITY OF Dubuque � All-America City UB E � r � Mas terpiece on the Mississippi Zoo,.Zo12.Zo13 TO: Michael Van Milligen, City Manager FROM: Candace Eudaley-Loebach, Transportation Services Director CC: Jodi Johnson, Operations Supervisor Russell Stecklein, Field Supervisor Jennifer Larson, Budget Director SUBJECT: Replace Part-Time with Full-Time Bus Operator Positions DATE: October 1, 2018 PURPOSE To provide documentation, short and long-term benefits calculations and request approval to transition the three existing healthcare eligible (1,715 hours) positions to three full-time positions (2,080 hours) effective December 1, 2018. This request is time sensitive as there are not a sufficient number of employees to cover basic service without paying overtime to full-time employees and/or the risk of employees exceeding the hours cap or having to be laid off. BACKGROUND This analysis includes costs to create three full-time positions and eliminate three healthcare eligible positions effective December 1, 2018. The attached infographic visually displays the benefits of more full-time bus drivers. Analysis includes estimated cost impacts of the proposal including the cost of healthcare for the healthcare eligible employees for an additional year, assuming they do not test and compete for the full-time positions; as well as the marginal costs of health, life insurance for the new positions, and coverage of work hours for full-time employees during sick, casual and vacation time. The ongoing expense of advertising positions, reviewing applications, setting up and conducting interviews and reviewing references is also included because with fewer part-time positions, the time spent on these activities would be reduced. DISCUSSION The Jule has a set number of hours of service, so creating a full-time position does not add more hours or FTE's to the Jule's budget; it reduces the number of employees needed to provide the approved level of services. The Jule currently provides 61,658 annual hours of bus service to the public with 74% being provided by 51 part-time drivers and 26% being provided by 8 full-time drivers. Three of the original eight healthcare eligible positions remain, however the employees in these positions receive the healthcare benefits, while working only 1,715 hours/year. Full-time employees work 2,080 hours/year and even if they used 100°k of their vacation, sick time and casual days, they would still provide 180 more work hours per position annually. Beyond the explicit costs related to recruitment, training and turnover of a large number of part-time employees, the frequency of accidents is lower with full-time employees. Employees currently working in the healthcare eligible positions will be able to test and compete for the new full-time positions. The current Civil Service Test for Bus Operator expires on December 20, 2018. A new test will be set to allow the greatest number of drivers to compete for these new positions. It is anticipated that new positions will be filled in January 2019. The cost proposal in the following section outlines a plan and costs for transitioning the three healthcare eligible positions to full time. In the long-term, creating additional full-time positions to provide at least 50°k of the Jule's service with full-time employees should be considered. BUDGETIMPACTS December 1 ,2018-December 1 , 2019 Position Current benefit New benefit and Hours covered Change in ex enses covera e ex enses hours worked #1 Healthcare Eli ible $14,310 1560 -155 #2 Healthcare Eli ible $14,310 1560 -155 #3 Healthcare Eli ible $14,310 1560 -155 A New FT osition $17,737 2080 520 B New FT osition $17,737 2080 520 C New FT osition $17,737 2080 520 Total Year 1 Ex ense $42,930 $53,211 +1,095 Funding Source: FY18 General Fund Operating Savings December 1 , 2019-December 1 , 2020 Position Current benefit New benefit and Hours covered Change in ex enses covera e ex enses hours worked A New FT osition $17,737 2080 520 B New FT osition $17,737 2080 520 C New FT osition $17,737 2080 520 Total Year 2 Ex ense $53,211 +1,095 In fiscal year 2019, the maximum cost of hiring three additional full-time drivers is $53,211 , however, if one of more current healthcare eligible employees completes the civil service process, competes for the position, and is appointed, the cost is reduced by their current benefit expense of$14,310 per employee. In fiscal year 2019, the healthcare eligible positions hours would be capped at 1 ,560 to ensure they are not eligible for healthcare the following year. In fiscal year 2020, because all part-time employees would be working no more than 1 ,560 hours per annual monitoring period, only full-time employees would be eligible for healthcare and this eliminates $42,930 in healthcare expense. In FY2020, the net cost of the three additional full-time employees is $10,281 . RECOMMENDATION/ACTION STEP I respectfully request that the three healthcare eligible positions be eliminated December 1 , 2018 and replaced with three full-time positions effective that same date.