REPORT TO COUNCIL
SUBJECT
Title
Adopt a Resolution Amending the City's Salary Resolution to Provide a Time Exception to Extend Assignments for Term Limited Employees Assigned to the Enterprise Resource Planning (ERP) Project
Report
BACKGROUND
Term Limited employees are defined as at-will employees, appointed to assist with projects of a limited duration, and shall not displace regular employees. Term Limited assignments must have a specific duration, not exceeding two years, except under special circumstances approved by the City Manager, in which the term may be extended by no more than one year. This report recommends amending the City’s Salary Resolution to allow the City Manager to authorize exceptions to the maximum duration of Term Limited assignments related to the ERP implementation project.
EXISTING POLICY
Council Policy 7.3.1 Legislative Management - Goals and Policies, Goal 7.3D: Maintain a quality work force, consistent with state and federal laws, City Charter, and adopted policies in order to assure that City services are provided in an effective, efficient, and high-quality manner.
Salary Resolution Article 7.180 Term Limited Employment
Civil Service Rules and Regulations Section 15.04 Term Limited Appointments
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” with the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(4) in that is a fiscal activity that does not involve any commitment to any specific project which may result in a potential significant impact on the environment.
DISCUSSION
In May 2018, the City selected Oracle Cloud Fusion ERP to replace the City’s financial and human resource information systems. While Rollout 1 of this project went live in February 2021, Rollout 2 - Human Capital Management (HCM) is still in progress, with a target Go-Live in 2023.
The project has taken longer than expected due to a 2019 change in implementation consultant, turnover of City and consultant subject matter experts, and challenges in configuration of this software to meet public sector requirements related to payroll and CalPERS. The City was able to attract qualified talent to work on the project in term-limited positions. Unfortunately, the 3-year maximum duration for Term Limited assignments will be ending for some of the staff as early as September 2022 pursuant to the terms in the Salary Resolution article 7.180(e) Term Limited Employment:
“Term Limited appointments shall specify their duration, and shall not exceed two years, except under special circumstances approved by the City Manager, in which case the term may be extended by no more than 1 year.”
The ERP project is now in the final implementation stage. Without an exception to the Term Limited maximum duration, the City will lose experienced resources just prior to going live and during the stabilization period. This would jeopardize project success by requiring the City to recruit and train new staff to complete the implementation, launch and stabilize the use of this new system.
This report recommends revising the Salary Resolution article 7.180(e) Term Limited Employment, granting a time exception to Term Limited assignments for employees assigned to the ERP project throughout the remainder of implementation and stabilization, to be approved by the City Manager. This proposed change has been discussed with Sunnyvale Employees Association/IFPTE Local 21 and with Sunnyvale Managers Association.
FISCAL IMPACT
Funding would be absorbed by the project budget.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City's official-notice bulletin board outside City Hall, at the Sunnyvale Public Library, Senior Center, Community Center and in the Department of Public Safety Lobby. In addition, the agenda and report are available at the Sunnyvale Public Library, Office of the City Clerk, and on the City's website.
ALTERNATIVES
1. Adopt a Resolution Amending the City's Salary Resolution to Provide a Time Exception to Extend Assignments for Term Limited Employees Assigned to the Enterprise Resource Planning (ERP) Project
2. Do Not Adopt a Resolution Amending the City's Salary Resolution
STAFF RECOMMENDATION
Recommendation
Adopt a Resolution Amending the City's Salary Resolution Amending the City's Salary Resolution to Provide a Time Exception to Extend Assignments for Term Limited Employees Assigned to the Enterprise Resource Planning (ERP) Project
Staff
Prepared by: Tina Murphy, Director of Human Resources
Reviewed by: Tim Kirby, Director of Finance
Reviewed by: Kathleen Boutte Foster, Chief Information Officer
Reviewed by: Jaqui Guzman, Deputy City Manager
Reviewed by: Teri Silva, Assistant City Manager
Approved by: Kent Steffens, City Manager
ATTACHMENTS
1. Resolution Amending the City's Salary Resolution to Provide a Time Exception to Extend Assignments for Term Limited Employees Assigned to the Enterprise Resource Planning (ERP) Project