HomeMy WebLinkAboutOrdinance 25226-12-2021 ORDINANCE NO.25226-12-2021
AN ORDINANCE AMENDING THE CODE OF THE CITY OF FORT WORTH (2015),
AS AMENDED, TO REVISE SECTION 2-180, "COVERAGE OF THE SYSTEM," TO
PROVIDE THAT CITY COUNCIL AIDES/DISTRICT DIRECTORS DO NOT HAVE
RIGHTS TO ADMINISTRATIVE APPEAL FROM ADVERSE EMPLOYMENT
ACTIONS AND TO MAKE NON-SUBSTANTIVE CHANGES TO SECTION 2-180 TO
ENHANCE CLARITY; PROVIDING THAT THIS ORDINANCE SHALL BE
CUMULATIVE; PROVIDING A SEVERABILITY CLAUSE; PROVIDING A SAVINGS
CLAUSE; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS,the Fort Worth City Code currently affords certain City employees the right
to appeal some adverse employment actions to a neutral third-party hearing officer; and
WHEREAS, individuals holding certain positions, including the City Manager, Assistant
City Managers, the Internal Auditor, the City Secretary, and the City Attorney and her assistant
city attorneys do not have such appeal rights; and
WHEREAS, the individuals who assist members of the City Council as council aides or
district directors historically worked on a less than full time basis; were traditionally hired,
disciplined, and fired directly by the Councilmember; and have not been regular full-time
employees; and
WHEREAS, in recent years the role of council aide/district director has evolved, with
many individuals serving on a full-time basis; and
WHEREAS, the Fort Worth City Council is separately amending the City's retirement
fund ordinance to make council aides/district directors eligible to participate in the retirement
fund, which necessitates such positions becoming regular full-time employment positions; and
WHEREAS, because of the unique nature a council aide/district director serves as an
assistant and envoy for his or her employing Councilmember, the Fort Worth City Council finds
it advisable to clarify that individuals holding such positions would continue to be directly hired,
disciplined, and fired by the City Councilmember for each district and would not be subject to
appeal rights afforded to most employees who report to the City Manager; and
WHEREAS, in reviewing Section 2-I80 to make this clarification, the City Attorney's
Office noted that this provision would benefit from non-substantive restructuring to enhance
clarity and recommends making revisions, which the City Council agrees would be beneficial.
Ordinance No.25226-12-2021
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NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THECITY
OF FORT WORTH,TEXAS,AS FOLLOWS:
SECTION 1.
That Section 2-180, "Coverage of the System," of the Code of the City of Fort Worth is
hereby amended to reflect that council aides/district directors are not subject to administrative
appeal rights and to make non-substantive revisions to enhance clarity, with such section, as
amended,to read as follows:
§2-180 COVERAGE OF THE SYSTEM.
This article shall apply to all officers and employees of the city and shall apply to all
such positions in the city service now existing or hereafter established, except as provided
below.
(a) The mayor, members of the city council and members of appointive boards shall
be exempt from the provisions of this article.
(b) The following_positions eity MaHageF and the assistant eity managers shall be
exempt from the dismissal,suspension and demotion section of this article.: -
(1)the city manager and the assistant city managers
(2)
aiad
,
all findings and fee6ffiffleflda4i6fis Of the
Eliseiplinafy appeals beafd of its designated hear-iHg e€Faser shall he made to
than to the My managef.
—(c)Tthe heads of departments, assistant heads of departments, and division heads,
_ (33)the judges of the municipal court system,
the city internal auditor ate
L�Jthe city secretary
shall be o „t f.,m the dismissal, and aematien section e this
artier
(e)61pPersons temporarily appointed to the city service apid
employees in their initial probationary period shall be exempt f em the
F(8 the city attorney and all assistants deputy and assistant city attorneys in the
department of law shall be o pt fFom the dismissal, stispension atid deffl6fien seet
f this ai4iele,
(9)aides to the city councilmembers/district directors
—(g)(c) Employees of the police department and fire department who are subject to the
provisions of the Fire and Police Civil Service Law (Tex. Local Government Code
Chapter 143)are exempt from the section on dismissal, suspension and demotion,and the
section on political activities.
(d) The city manager's secretary shall be subject to the dismissal, suspension and
Ordinance No.25226-12-2021
Page 2 of
demotion section of this article, save and except that, in the event of an appeal by the city
manager's secretary of a disciplinary action, all findings and recommendations of the
disciplinary appeals board or its designated hearing officer shall be made to the
appropriate committee of the city council for final decision, rather than to the city
manager.
SECTION 2.
That this ordinance shall be cumulative of all provisions of ordinances and of the Code of
the City of Fort Worth, Texas (2015), as amended, except where the provisions of this ordinance
are in direct conflict with the provisions of such ordinances and such Code, in which event
conflicting provisions of such ordinances and such Code are herebyrepealed.
SECTION 3.
That it is hereby declared to be the intention of the City Council that the phrases, clauses,
sentences, paragraphs and sections of this ordinance are severable, and, if any phrase, clause,
sentence, paragraph or section of this ordinance shall be declared unconstitutional by the valid
judgment or decree of any court of competent jurisdiction, such unconstitutionality shall not
affect any of the remaining phrases, clauses, sentences, paragraphs and sections of this ordinance,
since the same would have been enacted by the City Council without the incorporation in this
ordinance of any such unconstitutional phrase, clause,sentence, paragraph or section.
SECTION 4.
That this ordinance shall take effect upon adoption.
APPROVED AS TO FORM AND LEGALITY: ATTEST:
Jannette S.Goodall(Jan 21,202213:07 CST)
Sr.Assistant City Attorney Jannette S.Goodall
City Secretary
ADOPTED: December 14,2021
.
EFFECTIVE: December 14, 2021 ®� ... '�
�XAS
Ordinance No.25226-12-2021
Page 3 of 3
City of Fort Worth, Texas
Mayor and Council Communication
DATE: 12/14/21 M&C FILE NUMBER: M&C 21-0964
LOG NAME: 14COUNCILAIDETRANSITION
SUBJECT
(ALL)Adopt Attached Ordinances Regarding the Transition of Council Aide/District Director Positions to Pensionable Employment Positions by
Amending Chapter 2.5"Retirement"and Section 2-180,"Coverage of the System,"of the City Code and by Reallocating Appropriations in the
General Fund Up to$167,000.00 for City Retirement Fund Contribution Costs
RECOMMENDATION:
It is recommended that the City Council:
1.Adopt the attached ordinance revising the"Retirement"chapter of the City Code by amending section 2.5-2 to address council aide positions
becoming members of the retirement plan and to provide a one-time, irrevocable election allowing those currently serving in such positions to
remain in their current position and status, ineligible for the retirement plan;
2. Adopt the attached ordinance amending Section 2-180 of the Human Resources Article of Chapter 2 of the City Code to provide that City
Council Aides/District Directors do not have rights to administrative appeal from adverse employment actions and to make non-substantive
changes to enhance clarity;and
3.Adopt the attached ordinance reallocating appropriations in the General Fund for the purpose of funding costs of city contributions for the City
Council Aides/District Directors who become participating members of the Retirement Fund by decreasing the General Operating and
Maintenance category of Non-Departmental up to$167,000.00 and increasing the Salaries and Benefits category in City Manager's Office by the
same amount,with the amount of appropriation subject to the final figures calculated after all individuals have made their elections.
DISCUSSION:
The purpose of this Mayor and Council Communication(M&C)is to take actions associated with the position of Council Aide/District Director
being reconstituted as a pension-eligible regular full-time employment position.
Historically,individuals serving in the position of City Council Aide/District Director have been hired,disciplined,and fired directly by the
Councilmember and have not been considered regular full-time employees and as a result have not been eligible to participate in the Employees
Retirement Fund (the Fund). The aides/directors have instead participated in the City of Fort Worth's(City) FICA-alternative program,which
consists of employee contributions to a third-party administrator into a 401(a)plan,from which participants will receive payment in retirement.
Because all regular full-time employees are members of the Fund,the City has not been a general participant in Social Security since 1945.
The City Council recently requested that the City Manager evaluate the transition of the aide/director position to a pension-eligible position with the
accompanying benefits afforded to regular,full-time general City employees. Some individuals,particularly those who have been serving in the
aide/director position for a number of years, have expressed concerns with being required to join the Fund at a late date and wish to instead
continue participating in the City's 401(a) FICA-Alternative Plan.
All currently serving aides/directors will be given a one-time option to transition to a regular,full-time general employee as described in more detail
below.Those that opt not to transition to regular,full-time employment will remain in their current position and status,ineligible to participate in the
Fund.All future aides/directors will be hired into regular,full-time positions eligible for and required to participate in the Fund.
Adoption of the first attached ordinance would revise the Retirement Fund Chapter of the City Code by amending section 2.5-2. The ordinance
would provide a one-time,irrevocable election that allows an individual currently serving in a non-pension-eligible position that is being eliminated
and replaced with a regular,full-time, pension eligible position to not become a member of the Fund so long as certain identified criteria are all
met.
Two of the key requirements are that the pre-tax employee contributions under either option(pension or FICA alternative)are the same and that an
election must be made before the first date for which contributions under the Fund are scheduled to be made. These requirements are needed to
comply with IRS(Internal Revenue Service)regulations and guidance regarding pre-tax retirement contributions.
As currently proposed,the new aide/director pension-eligible position would"come online"on January 1,2022,which is the beginning of pay
period 2 for calendar year 2022,and Fund contributions will be made for all service rendered to the City on or after that date. Each individual must
make his or her election no later than December 30,2021,which is the last City business day before the date on which the change in status will
otherwise take effect.
The election is irrevocable,and any individual who opts not to become a regular,full-time employee would be required to continue participating in
the FICA-alternative program with contributions at the same rate as those made to the Fund. Any individual who fails to make an election or
whose attempted election does not fully comply with the criteria will automatically become a member of the Fund as of January 1,2022. The City's
Human Resources Department has had on-going discussions with the affected individuals and will continue to assist them with information to
make an informed decision.
In accordance with state law,any individual who begins working as an aide/director on or after January 1,2022,will automatically become a
participating member of the Fund on the date of the person's employment with the City.
Note—Individuals who become participating members of the Fund will pay an employee contribution for compensation attributable to service on or
after January 1,2022. The City intends to"pick up"the contribution amount and treat it as an employer contribution payable on a pre-tax basis,
reducing participants'taxable income. Complying with tax law restrictions requires that the election not to participate in the Fund be made in
advance and precludes an election being made after the"pick up"of these contributions begins on January 1,2022. Because the City is closed
on December 31,2021,in observance of the New Year's Day holiday,elections must be made by 5:OOpm on December 30,2021.
Because of the unique nature a Council Aide/District Director serves as an assistant and envoy for his or her employing Councilmember,they
would continue to be hired,disciplined,and fired at the discretion of their individual Councilmember as has historically been the case. To
memorialize this understanding, it is recommended the City Council adopt the second attached ordinance,which amends section 2-180 of the
Human Resources article of the City Code to provide that City Council Aides/District Directors do not have rights to administrative appeal from
adverse employment actions. In reviewing Section 2-180 to make this clarification,the City Attorney's Office noted that this provision would benefit
from non-substantive restructuring to enhance clarity and recommends making revisions as noted in the attached.
When this change goes into effect on January 1,2022,the approved position(AP)count reflected in the adopted budget will be increased by nine.
The per-employee cost is higher for someone who is participating in the Fund than for an individual in the FICA-Altemative Program.The third
attached ordinance would reallocate receipts and appropriations in the General Fund by reducing Non-Departmental by$167,000.00 and
increasing City Manager's Office by that same amount. This amount represents the maximum additional cost that would occur if all nine existing
aides become participating members in the Fund. Because it is anticipated that some individuals may opt to remain outside the Fund,the actual
amount that is needed may be lower.Therefore,the attached appropriation ordinance includes language that would reduce the appropriation
amount to the actual cost,which will be calculated after all of the impacted individuals have made their election.
A Form 1295 is not required because:This M&C does not request approval of a contract with a business entity.
A Form 1295 is not required because:This M&C does not request approval of a contract with a business entity.
FISCAL INFORMATION/CERTIFICATION:
The Director of Finance certifies that funds are currently available in the General Operating and Maintenance category within the General Fund and
upon approval of the above recommendations and adoption of the attached appropriation ordinance,funds will be available in the Salary&
Benefits category within the General Fund. Prior to an expenditure being incurred,the City Manager Department has the responsibility of verifying
the availability of funds.
Submitted for City Manager's Office-W. Jay Chapa 5804
Originating Business Unit Head: Dianna Giordano 7783
Nathan Gregory 7847
Additional Information Contact:
Expedited