G-98-03-26-9B1 - 3/26/1998ORDINANCE NO. g qg.o3/q3)
AN ORDINANCE CHANGING THE TITLE OF THE PERSONNEL
POLICIES AND PROCEDURES MANUAL OF THE CITY OF ROUND
ROCK, TEXAS TO HUMAN RESOURCES POLICIES AND
PROCEDURES MANUAL, AMENDING SECTION 5.00 OF THE
MANUAL CONCERNING COMPENSATION AND SALARY
ADMINISTRATION, AND ADDING A PERFORMANCE
MANAGEMENT PROCESS POLICY; PROVIDING FOR A SAVINGS
CLAUSE AND REPEALING CONFLICTING ORDINANCES.
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF ROUND ROCK,
TEXAS:
I.
That the title of the Personnel Policies and Procedures manual
be changed to Human Resources Policies and Procedures Manual.
II.
That Section 5.00 of the Personnel Policies and Procedures
Manual of the City of Round Rock, Texas, dated December 9, 1993, is
hereby amended to read as follows:
5.00 COMPENSATION AND SALARY ADMINISTRATION
5.01 COMPENSATION
5.01.01 Classification Plan. The city maintains a classification plan which assigns each classification to
a pay grade based on the principle of equity among positions requiring similar knowledge, skills, and
abilities and having similar levels of responsibility.
5.01.02 Pay Plan. A pay plan covering all city positions is established each year by the city council in
the city's adopted operating budget.
5.01.03 Within the general guidelines of the pay plan and the budget, the city manager is authorized to
determine the appropriate pay grade to which each position is allocated and the pay to which the particular
employee is assigned. An employee who is designated exempt from the pay plan is paid with maximums
set in a budget approved by the city council.
5.01.04 Paydays. The pay period for the city is biweekly (once every two weeks). Checks are issued on
alternate Fridays for each 14 -day period. The Fire Department operates on a 21 -day period. If the payday
falls on a holiday, checks will be issued on the last working day preceding the holiday.
K:\WPDOCS\ORDINANC\080326BI.WPD/acg
5.01.05 Check Delivery. Paychecks will not be issued other than on the days specified above. Each
department head is responsible for arranging for the pick up of paychecks for employees in the
department from the city payroll office. Only the employee or someone with written authorization from
the employee, or someone with a bona fide written power of attorney for the employee, may receive the
check in person.
5.01.06 No salary advances or loans against future salary will be made to any employee for any reason.
(Legal reference: Texas Constitution, Article III, Sections 51, 52, and 53.)
5.01.07 An employee must bring any discrepancy in a paycheck (such as overpayment, underpayment,
or incorrect payroll deductions) to the payroll technician's attention before cashing the check.
5.01.08 Payroll Deductions. Deductions are made from each employee's pay for the following:
1. Federal Social Security and Medicaid;
2. Federal income taxes;
3. Court ordered child support;
4. Texas Municipal Retirement System contributions (for regular full-time employees and
covered part-time employees); and
5. Any other deductions required by law.
5.01.09 In accordance with policies and general procedures approved by the city manager, deductions from
an employee's pay may be authorized in writing by the employee for:
1. The portion not paid by the city of group health/medical and life insurance premiums for
employees or dependents;
2. Supplemental deferred compensation; and
3. Any other deductions authorized by the city manager.
5.02 SALARY ADMINISTRATION
5.02.01 New Hires. In most instances, a vacancy should be filled at the minimum rate of the pay grade.
The following factor shall be considered in determining new hire rate:
1. Salaries paid to other incumbents in the position within the hiring department and City-
wide.
2. Salary range of the position.
3. Qualifications of individual versus qualifications for the incumbents in the position.
5.02.02 Requests to offer a salary above the minimum must be approved by the Human Resources
Director prior to an offer of employment. This provision does not apply to the classification of Police
Officer I and Firefighter who will be compensated based on the previously applied schedule. Exceptions
to the approved schedule must be approved by the Human Resources Director.
2
5.02.03 Promotions. A promotion is the movement of an employee to a position in a higher pay grade
that involves increased responsibility, greater complexity and greater consequence of error. Employees
who are promoted should receive a pay increase 8% or to the minimum salary for the new pay grade
whichever is greater. Exceptions to these increases must be approved by the Department Director and the
Human Resources Director. Upon promotion, an employee serves an introductory period of six month
in the new position.
5.02.04 Lateral Class Changes. A lateral class change is the movement of an employee to another
classification with the same pay grade as his or her current classification. This class change will result
in the assigning of new key result areas. This type of change will normally be accomplished without an
increase in salary. The employee's performance and salary may be reviewed after six months and a merit
increase granted, if warranted. However, no employee will receive two performance based salary increases
within a twelve month period.
5.02.05 Demotions. A demotion is the movement of an employee to a position in a lower pay grade that
involves a change in the key result areas.
5.02.06 Demotions may occur for the following reasons:
1. Reassignment in lieu of layoff due to a reduction in workforce. In most instances an
employee's salary will not be affected; however, the following conditions apply: the
employee's salary shall not exceed the maximum salary of the new pay grades.
2. Performance based due to sustained inadequate performance or Voluntary (employee
initiated) Demotion. Employee's salary will be decreased by 5 - 7% or to the maximum
salary of the new pay grade.
3. Selection through competitive posting for a position in a lower pay group. Employee's
salary may be negotiated with the hiring authority; however, in no instances shall the
salary exceed the employee's current salary of the maximum for the pay grade.
5.02.07 Temporary Assignments. An employee (excluding employees performing fire protection
activities) may be temporarily assigned to duties outside of his/her classification for a maximum period
of six months and during that time may receive the appropriate rate of pay if the temporary assignment
is in pay grade with a higher minimum rate. Temporary assignments may not exceed six months in a
twelve month period.
5.02.08 Reclassification. This does not mean a change in an employee's current duty assignment. A
reclassification may occur when over a period of time an employee's key results areas changed
significantly enough to warrant a change in classification. A position may be reclassified to another class
in the same pay grade or to a higher or lower pay grade. An employee whose position is reclassified to
a higher pay grade may receive up to a 5% increase or the minimum of the new pay grade. If a position
is reclassified but remains assigned to the same pay range, no pay adjustment will take place.
5.02.09 Supervisors are required to review significant proposed changes in key results areas with the
Human Resources Director.
5.02.10 Performance Based Salary Increases. This increase will be used to reward employees whose
job performance contributes to the continuous improvement of the city and/or productivity consistently
meets or exceeds expectations. (Salary administration details will be included at a later date, however,
the new salary shall not exceed the maximum salary for the pay grade.)
3
5.02.11 Certification Pay. If a specific type of certification is required for a person to hold that position,
that certification is not compensable as certification pay.
5.02.12 Police, Fire, and Water and Wastewater personnel are compensated for attaining level(s) of
certification above that which is required for the position held. They are compensated as follows:
First Level $30 per month
Second Level $40 per month
Third Level $50 per month
5.02.13 Incentive Pay. Incentive Pay is awarded to a Police Officer when a special activity/skill that he
performs falls into the following guidelines:
1. Activity/skill is special service of function that benefits the department;
2. Activity/skill requires officer to take on additional responsibility (not a job requirement);
3. Activity/skill requires significant time and training; or
4. Activity/skill is not traditionally compensated.
5.02.14 Longevity Pay. In accordance with state statutes, the city pays each city police officer and
firefighter longevity pay in the amount of $4.00 per month for each full year of service with the city, with
accrual beginning at the end of the first full year and increasing each year by $4.00 per month up to a
maximum of 25 years of service ($100.00 per month). (Legal reference: V.T.C.A. Local Government
Code, Section 141.032.)
5.02.15 The city may, but not necessarily will, reward most or all city employees with an end -of -year,
lump -sum payment, at the discretion of the city council. Rewards of this nature may be given if:
1. A pool of funds for this tentative purpose has been set aside in the budget established by
the city council at the beginning of the fiscal year; and
2. The city council considers that the overall performance of the city staff justifies granting
such rewards and authorizes the city manager to make the disbursements.
5.02.16 The amount of any longevity pay awarded to employees is established at the discretion of the city
manager, within established guidelines. If longevity pay is granted, the amount of the reward will
normally be included in the paycheck for the first pay period in December. An employee must be on
the city payroll on the date established as the cut off date in order to receive longevity pay.
5.02.17 Approving Authority. The city manager is the final approving authority for all classifications,
pay and payroll actions.
5.02.18 Related City Policies and Procedures.
Pay and Classification Plan, Fiscal Year 1997-1998
4
5.03 PERFORMANCE MANAGEMENT PROCESS
5.03.01 Policy. The City of Round Rock will provide a uniform and equitable process of communicating
to employees the performance expectations, their actual achievements, and recommendations for improving
performance. Performance Management Processes are critical because employees need to know areas in
which they are having success as well as areas where they should improve to meet performance standards
and/or career enhancement goals.
5.03.02 Regular status employees' performance will be evaluated twice a year. The review conducted at
the end of the appraisal period will serve as the basis for any performance based salary increase.
5.03.03 Introductory period status employees will receive a performance appraisal prior to the completion
of six months of employment with the organization.
5.03.04 Temporary employees hired for a period of less than six (6) months are not required to be
evaluated.
5.03.05 Performance Management Process The performance management process is used to set
expectations, document performance, provide periodic feedback on performance and to identify areas
where improvement is needed.
5.03.06 The performance management cycle includes the following activities:
1. Supervisor and employee discuss Competencies and Identify Key Results Areas (KRAs)
and develop performance standards for the KRAs. A performance standard is a statement
of the results that will exist when job performance meets supervisor's expectations.
Performance standards provide a method of measuring performance instead of measuring
people.
2. During the appraisal period, the supervisor and employee must have periodic discussions
to review and document the employee's progress toward achieving the performance
standards.
3. During the appraisal period, the employee is given an opportunity to assess his or her own
performance and achievement during the appraisal period, and to identify developmental
needs. The employee's comments provide information that may relevant to the reviewing
supervisor. The employee's input also provides the basis for discussion between the
supervisor and employee regarding future training and career development opportunities.
4. The supervisor appraises the employee's performance, documents actual achievements and
assesses the employee's knowledge and skills, meets with the employee to review the
supervisor's assessment and provides input into the employee's developmental plan.
5.03.07 Performance management results from the interrelationship of four separate elements:
1. The performance plan;
2. The performance appraisal;
3. The career enhancement feedback, developmental plan; and
5
4. The performance review conference.
5.03.08 The performance plan:
1. Identifies the competencies and provides examples of descriptors of behavior associated
with each rating;
2. Provides a list of the KRAs and the associated standards of performance;
3. Documents the communication of performance expectations between employees and
supervisors; and
4. Serves as a management tool for ensuring that overall organizational goals and objectives
are addressed.
5.03.09 The performance appraisal provides:
1. Documentation of an employee's achievements toward meeting performance standards and
expectations related to competencies; and
2. A management tool for assessment of individual and organizational productivity.
5.03.10 The development plan:
1. Identifies training and developmental needs to enhance or improve future performance;
and
2. Identifies training and developmental needs to enhance career opportunities for the
employee.
5.03.11 The performance review conference provides:
1. An opportunity for discussion between the employee and supervisor regarding overall
performance, developmental needs and future performance plans.
5.03.12 Types of Performance Appraisals. There are several types of performance appraisals.
5.03.13 Introductory Period Review. New employees work in an introductory period status for their first
six (6) months of employment.
5.03.14 Employees should meet with their supervisor to develop a performance plan within the first thirty
(30) days of initial employment. Supervisors must inform employees during a performance plan conference
that a progress conference will be conducted after three (3) months.
5.03.15 One month prior to completion of the introductory period, new employees will receive a
performance review. If the overall performance appraisal rating is documented as Exceeds Expectations
or Meets Expectations, the supervisor should recommend the employee for regular status. Due to
extenuating circumstances, the supervisor may recommend that the introductory period be extended. The
extension must be approved by the Department Director. If the overall performance appraisal rating is
documented as Needs Improvement or Does Not Meet Expectations, the supervisor may recommend
termination. The supervisor discusses the appraisal with the employee and follows the signature process.
6
Upon completion of the signature process, the appraisal must be received in Human Resources by the end
of the sixth month of the introductory period.
5.03.16 If an introductory period employee changes positions before completing the six (6) month period,
a new introductory period will begin for the new position. However, the new beginning date of the
introductory period does not affect employment status for purposes of leave usage. The end of the
introductory period for leave purposes will be based on the original date of hire.
5.03.17 Regular Status Employees Review. Performance reviews will be conducted twice a year. The
mid -year review should be conducted no later than March 30th. The mid -year review will not be the basis
for a salary action, but will provide an opportunity for the employee and supervisor to discuss the
employees progress toward meeting performance standards and competency development. Fiscal year-end
reviews will serve as the basis for pay for performance salary increases. The review should be conducted
within thirty (30) days of the beginning of a new fiscal year, on October 1st.
5.03.18 Other Reviews A performance review should also be conducted for the following reasons:
1. Transferring employees: For a transferring employee, the current supervisor prepares a
performance appraisal if the employee's:
a. Last appraisal was completed more than three (3) months before the effective date
of the transfer; or
b. Performance has significantly changed since their last appraisal.
2. Transferring supervisor: For a transferring supervisor, the supervisor prepares a
performance appraisal if the employee's:
a. Next appraisal is due within three (3) months after the effective date of the
transfer; or
b. Performance has significantly changed since the last appraisal.
3. Performance Issues: A supervisor may conduct a performance appraisal when:
a. An employee's performance deserves special recognition; or
b. An employee's performance does not appear to be meeting expectations.
4. Change in Duty Assignment: A supervisor should conduct a performance appraisal when:
a. An employee's KRAs and/ or standards of performance change significantly; or
b. An employee's KRAs and/or standards of performance as a result of a promotion,
demotion or a lateral classification change.
5.03.19 Performance Plan. All employees should meet with their supervisor to develop a performance
plan within the first thirty (30) days of employment, or upon a change in classification. The employee
and the supervisor sign the performance plan indicating that performance standards have been discussed
and communicated as the basis for an appraisal of the employees performance. Performance plans are
to be maintained at the division level.
7
5.03.20 The performance plan identifies the KRAs and establishes the performance standards for each
employee's job. KRAs originate from the Job Description, which documents the essential, job -specific
functions of the position. KRAs may also originate from the City's goals and objectives.
5.03.21 Standards of Performance are statements of conditions that will exist when job performance meets
the supervisor's expectations. Performance standards should include qualitative and quantitative criteria
that ensures the work group/employee will meet goals and objectives related to the tasks. Standards are
written for the job, rather than for the employee performing the job. Performance standards provide a
method of measuring an employee's performance. Objective performance standards must be defined for
each KRA. All standards must be measurable.
5.03.22 The performance plan remains in effect until amended or until another plan is signed.
5.03.23 Performance Appraisal. The purpose of the appraisal is to document the employee's performance
in relation to the performance standards established in the performance plan. It ensures constructive
communication between employee and supervisor in the interest of productivity. The supervisor must
specifically document in quantitative and/or qualitative terms whether or not, and to what degree,
performance standards have been met.
5.03.24 Development Plan. The purpose of the Development Plan is to identify the employee's areas of
strengths and developmental needs. It is used to assist the employee in improving employee performance
or to prepare for lateral and/or vertical career changes. Through the performance management process,
goals can be set for acquiring new skills, improving and/or correcting current employee performance and
for acquiring new knowledge and skills to make career changes.
5.03.25 Management Review. Department Directors are responsible for ensuring consistency of ratings
within their department. Appraising supervisor's should route the appraisal document to the next level
supervisor for review prior to conducting the performance review.
5.03.26 Performance Review Conference. A conference is then held to review and discuss the
supervisor's appraisal and the employee's self-assessment. The conference also provides an opportunity
for the supervisor and employee to review the existing performance plan and to make adjustments for the
future, as appropriate.
5.03.27 The supervisor discusses the appraisal with the employee and follows the signature process. If the
employee refuses to sign the appraisal document, another member of management must verify that the
employee refused to sign and then sign the document. The reviewer signs the document after the
performance appraisal conference has been held. Upon completion of the signature process, the supervisor
provides a copy of the appraisal to the employee and forwards the original to Human Resources and Staff
Development by the end of the month following the month of appraisal.
5.03.28 Performance Improvement Plan (PIP). The supervisor may evaluate the employee's
performance at any time during the appraisal period. The following rules apply: (1) If an employee
receives an overall Performance Appraisal Rating of Does Not Meet Expectations on the annual appraisal,
a PIP must be implemented; (2) If the employee is not meeting the performance standards for a particular
task at anytime during the appraisal period, the supervisor has the option of placing the employee on a
Performance Improvement Plan (PIP). Supervisors must apply the same practice to all similarly situated
employees.
8
5.03.29 The plan identifies deficiencies, provides a methodology for improvement, and establishes a
timetable in which performance must be improved. Usually, the maximum period for a PIP is ninety (90)
calendar days.
5.03.30 The original plan remains with the supervisor until the completion of the PIP period and a copy
is given to the employee. A copy of the plan must be attached to the appraisal that is submitted to Human
Resources.
5.03.31 At the end of the PIP period, the supervisor and employee meet to discuss the employee's
progress, training needs, and future action items. The supervisor documents (in a memorandum to the
appropriate approving authority) the results of the improvement review session.
5.03.32 If an employee fails to maintain performance standards, the opportunity for an employee to
improve performance will not necessarily be repeated. Disciplinary action up to and including termination
may result without an additional PIP.
5.03.33 If the employee's performance has not improved within the time period established, the supervisor
may determine that additional time is warranted to achieve the objectives, or that performance is such that
disciplinary action is necessary.
5.03.34 Tracking and Record Keeping. Human Resources tracks performance appraisals and will provide
the Department Director the names of employees whose performance reviews are thirty (30) days past due.
The City Manager will be given this information when reviews are sixty (60) days overdue.
5.03.35 The original Employee Performance Management Review is maintained in the personnel files in
Human Resources. Human Resources will conduct an administrative audit to ensure the document is
complete.
5.03.36 Access to an employee's Performance Management Review is limited to: the employee; designated
Human Resources staff; designated Legal staff; a designated representative of the employee (in the
employee's presence); supervisors in the employee's line of supervision; or an organizational hiring
authority who is considering the employee's record in relation to an actual job posting.
5.03.37 Disposition of copies. After all required signatures are obtained, the document is distributed as
follows:
1. Original to Human Resources
2. Copy maintained at the supervisor and/or division/office level
3. Copy to employee
5.03.38 Retention. Employee personnel files are confidential and are maintained in accordance with state
laws and regulations. However, the performance review document is subject to the Public Information Act.
5.03.39 Rebuttal. If an employee does not agree with the supervisor's assessment of performance, the
employee may respond by providing a written rebuttal. The purpose of a rebuttal is to record the
employee's disagreement with the supervisor's appraisal of his/her performance.
9
5.03.40 An employee may provide a written rebuttal attached to the performance appraisal form. The
written rebuttal must be submitted within ten (10) working days following the date the appraisal was
administered.
5.03.41 The appraising supervisor must respond to the rebuttal in writing within five (5) working days
following the receipt of the rebuttal.
5.03.42 Management Review. If the employee does not think that the issues raised have been sufficiently
addressed, a Management Review may be requested. The purpose of the Management Review is to provide
an opportunity for the employee to request a change in any specific rating. Issues concerning the
Development Plan may not be the basis for a Management Review.
5.03.43 The appraising supervisor and employee requesting the review should meet with successive levels
of management, up to and including the Department Director, in order to address the employee's concerns.
A decision by the Department Director is final.
5.03.44 The request for a Management Review must be submitted in writing to the immediate supervisor
within ten (10) working days following the date the appraisal review conference was held.
5.03.45 A written response detailing the final findings and decisions related of the management reviewed
must be completed within thirty (30) days following the date of the request for Management Review. The
completed document should be received by Human Resources no later than November 1st.
III.
A. All ordinances, parts of ordinances, or resolutions in
conflict herewith are expressly repealed.
B. The invalidity of any section or provision of this
ordinance shall not invalidate other sections or provisions
thereof.
C. The City Council hereby finds and declares that written
notice of the date, hour, place and subject of the meeting at which
this Ordinance was adopted was posted and that such meeting was
open to the public as required by law at all times during which
this Ordinance and the subject matter hereof were discussed,
considered and formally acted upon, all as required by the Open
Meetings Act, Chapter 551, Texas Government Code, as amended, and
the Act.
10
Alternative 1.
By motion duly made, seconded and passed with an affirmative
vote of all the Council members present, the requirement for
reading this ordinance on two separate days was dispensed with.
READ, PASSED, and ADOPTED on first reading this Q60t12 day
of M' aPloCk , 1998.
Alternative 2.
READ and APPROVED on first reading this the day
of , 1998.
READ, APPROVED and ADOPTED on second reading this the
day of , 1998.
ATTEST:
E LAND, City Secretary
11
CHARLES CU PEPPER, Mayor
City of Round Rock, Texas
DATE: March 20, 1998
SUBJECT: City Council Meeting - March 26, 1998
ITEM: 9.B.1. Consider an ordinance amending the City's Personnel Policy.
a) Changing the title of the existing Personnel Policies and
Procedures manual to Human Resources Policies and
Procedures Manual. This proposed change reflects the more
comprehensive work of Human Resources Management (i.e.
Training & Development, Performance Management,
Strategic Planning, et al.).
b) Renaming Section 5.0 Employee Compensation and
Advancement Policy. The section would be renamed to
Compensation and Salary Administration. This section has
been updated to include language associated with the City's
new compensation practices as approved by Council as a
result of a compensation study completed by Watson &
Wyatt Worldwide (WWW). A side-by-side comparison is
included with the packet for review.
Adding a Performance Management Process Policy. The
Policy is designed to correlate with the City's Performance
Management Process. The policy outlines process
guidelines, timeframes and responsibilities. It is designed to
ensure a uniform, equitable process that is consistently
applied throughout city government.
(First Reading) Second Reading may be dispensed with the unanimous
consent of all the Councilmembers present. Staff Resource Person: Teresa
S. Bledsoe, Human Resources Director