Agenda - 11-05-20; 6-d - Approval of a Pandemic Response Payment to Permanent Orange County Employees and Approval of Budget Amendment #3-A

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2 • Executive Order 169 issued on September 30, 2020 revised prohibitions and restrictions that moved the state into Phase 3 measures. During this time, the employees of Orange County have demonstrated creativity, flexibility, and perseverance in the face of uncertainty. The FY2020-21 Budget included a variety of austerity measures to preserve the County's financial position. One of these measures was the elimination of a traditional across the board wage adjustment and the suspension of financial performance awards connected to annual evaluations. Given the adjustments that all employees have had to make as a result of the pandemic, the County Manager is recommending a one-time Pandemic Response Payment of $100 for each month worked from March 1, 2020 through November 1, 2020. Permanent employees who were actively on payroll during this time would receive a one-time payment of $900. Employees hired during the time of March 1, 2020 through November 1, 2020 will receive $100 for each month employed, and active part-time permanent employees will receive a pro-rated payment. The payment would occur in the last pay period in November. The Pandemic Response Payments would be funded through a transfer of reserve funds from the County's health insurance program. This fund currently has a total reserve balance of$3,985,334 as of the end of FY2019-20. As part of the North Carolina Health Insurance Pool, the recommended reserve balance is $981,735 or about 1.2 months of expected claims. As a result, the reserve currently holds reserves in excess of the reserve policy of$3,003,599. Of this amount, $990,000 would be required to fund the Pandemic Response Payments in FY2020-21. FINANCIAL IMPACT: Human Resources estimates that the Pandemic Response Payments will total approximately $990,000. Budget Amendment #3-A provides for the funds to be transferred from the County's Health Insurance Reserve to cover the costs of the payments, resulting in no impact on the General Fund. SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goal is applicable to this item: GOAL: FOSTER A COMMUNITY CULTURE THAT REJECTS OPPRESSION AND INEQUITY The fair treatment and meaningful involvement of all people regardless of race or color; religious or philosophical beliefs; sex, gender or sexual orientation; national origin or ethnic background; age; military service; disability; and familial, residential or economic status. ENVIRONMENTAL IMPACT: No environmental impact associated with this abstract. RECOMMENDATION(S): The Manager recommends that the Board • Authorize a one-time Pandemic Response Payment of $100 per month to permanent County employees who have been on the payroll between March 1, 2020 and November 1, 2020, prorated for permanent part time employees, and • Approve Budget Amendment #3-A transferring funds from the County's Health Insurance Reserve to a Pandemic Response Payment account to be distributed to departments' personnel line items according to the amount of payment required in each department.