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SR-602-007 f:\person\misc\council\staffrpt\council53military.doc Santa Monica, California Council Meeting: October 23, 2001 TO: Mayor and City Council FROM: City Staff SUBJECT: Resolution Providing for Continuation of Salary and Benefits for Permanent City Employees Called to Active Military Duty Since September 14, 2001 Introduction This report requests adoption of the attached resolution providing for the continuation of a permanent City employee?s salary and benefits in the event that the employee is called to active military duty for homeland defense, per the President?s Executive Order of September 14, 2001. Background Section 2.04.600 of the Santa Monica Municipal Code currently provides that an employee with permanent civil service status be granted a leave of absence without pay in the event the employee is inducted into the armed forces of the United States or leaves his/her employment to voluntarily enter the armed forces. Under State law, Military and Veterans Code Section 389, an employer is required to provide for the continuation of the employee?s salary for thirty (30) calendar days in the event the employee is called for active duty in a time of war or national emergency as proclaimed by the President of the United States or the Congress of the United States. On Friday, September 14, 2001, the President of the United States issued an Executive Order declaring a National Emergency and invoking a Partial Mobilization of the Ready 1 Reserve of the Armed Forces. This authorizes the Secretary of Defense to order to active duty up to 1,000,000 members of the Ready Reserve without their consent for a period not to exceed 24 consecutive months. Secretary of Defense Donald Rumsfeld and President Bush have ordered up to 50,000 Reservists to active duty in response to the national tragedies that occurred on September 11, 2001. The call-up will begin immediately. As of October 3, 2001, two City employees with permanent civil service status have been called to report for active duty. There are approximately twelve City employees who are in the Reserves. During the 1991 Gulf War and the 1999 conflict in Kosovo, some public agencies, including Santa Monica, adopted a policy that provided for the continuation of the permanent employee?s salary and benefits for the period of time that he/she was required to participate in active military duty. The continuation of the employee?s salary was handled similarly to jury duty. The affected employee was paid his/her normal salary but was required to reimburse the City for any pay that was received from the U.S. Government. Discussion The proposed resolution would guarantee continuation of salary and benefits for any permanent City employee called to active military duty for homeland defense assignments. Employees who receive benefits under this resolution would be required to reimburse the City for any salary received from the U.S. Government, with said reimbursement to be made on a monthly basis. This resolution would remain in effect while the permanent employee is on active duty for a period not to exceed 24 months. 2 Budget/Fiscal Impact The City may find it necessary to hire temporary employees or schedule overtime to fill in for the duties of the permanent employees called to active duty. Should all twelve employees be called up and their positions have to be backfilled for the maximum 24 month period, the total additional expense would approximately $1,050,000. Recommendation It is recommended that the City Council adopt the attached resolution providing for the continuation of the salary and benefits of any permanent (including probationary) City of Santa Monica employee who has been called to active duty for homeland defense assignments in the United States military since September 14, 2001, not to exceed 24 months. Prepared by: Karen Bancroft, Director of Human Resources 3