ORDINANCE _________________

AN ORDINANCE relating to City employment; adding a new section to Seattle Municipal Code Chapter 4.34 that authorizes eligible City of Seattle employees to convert accumulated and unused vacation to cash to benefit relief efforts on behalf of victims of natural disasters.

WHEREAS, natural hazards such as earthquakes, tsunamis, hurricanes and floods can result in natural disasters that threaten life, property and critical systems; and

WHEREAS, natural disasters, whether they occur within the United States or other countries, can leave individuals homeless or without food, clothing, water, or other basic necessities for survival and overwhelm communities' capabilities to respond and recover; and

WHEREAS, the City of Seattle has examined opportunities for City employees with specific skills to assist agencies or to provide personal financial contributions for disaster relief efforts; and

WHEREAS, City of Seattle employees have supported disaster relief efforts in the past through monetary contributions, volunteering their time, or donating the cash value of vacation leave; and

WHEREAS, in response to previous humanitarian crises, the United States Internal Revenue Service determined that it would not assert that donations of cash converted from employee vacation leave balances constituted gross income or wages; and that such donations did not result in constructive receipt of gross income or wages for employees;

NOW, THEREFORE,

BE IT ORDAINED BY THE CITY OF SEATTLE AS FOLLOWS:

Section 1. A new Section 4.34.075 is added to the Seattle Municipal Code as follows:

4.34.075 Donation of Vacation Leave for Natural Disaster Relief Efforts

A. Any employee who earns vacation under Seattle Municipal Code Chapter 4.34 and who is otherwise eligible to use vacation may voluntarily authorize the conversion of accumulated and unused vacation balances to cash for transmission by the City to a designated agency for the purposes of funding natural disaster relief. An employee may not convert more than 20 hours of his or her vacation time over the course of a calendar year, and must convert vacation time in onehour increments. An employee may only convert vacation time for donation of funds to an agency designated under the process and consistent with the criteria provided in Seattle Municipal Code 4.34.075(C) and for a natural disaster or disasters designated under the process and consistent with the criteria provided in Seattle Municipal Code 4.34.075(B).

1. The Personnel Director shall provide and the donating employee shall sign a form stating the employee's consent to and approval of conversion of vacation hours. The employee shall state the number of vacation hours to be converted to cash for donation, and shall identify the relief agency that shall receive the funds.

2. The amount of vacation donated by any employee shall be converted to cash at the straight-time base rate of pay in effect for the employee's regular position title, exclusive of premium, shift differential or longevity payment at the time of donation.

3. The cash resulting from the converted vacation hours shall be transmitted by the Personnel Director to the designated agency or agencies specifically for use in the relief efforts related to natural disasters authorized by Seattle Municipal Code Section 4.34.075.

4. Participating employees' accumulated and unused vacation balances shall be reduced by the number of hours designated for conversion to cash. The Director of Department of Finance and Administrative Services will adjust the accumulated and unused vacation balances for employees who select to participate in the natural disaster giving opportunities. The Personnel Department working with the Department of Finance and Administrative Services may execute, deliver and perform program and administrative duties to complete the transfers of cash donations from vacation leaves to relief agencies.

B. For the purposes of administering Seattle Municipal Code 4.34.075, a natural disaster is defined as the effect of a natural hazard (e.g. earthquake, flood, or landslide) on human populations. The Personnel Director in consultation with the Director of the Office of Emergency Management shall designate which natural disasters qualify for employee donations via vacation conversion under Seattle Municipal Code 4.34.075(A), consistent with the following criteria:

1. The natural disaster affects a significant portion of the country or region's population and/or results in significant damage to the affected country or region's infrastructure; and

2. The natural disaster affects a country or region that lacks the ability and/or resources to effectively respond to the disaster; and

3. The natural disaster is of a magnitude that only two to three such disasters occur in a typical year.

C. The Personnel Director in consultation with the Director of the Office of Emergency Management shall designate which agencies qualify for employee donations via vacation conversion under Seattle Municipal Code 4.34.075(A), consistent with the following criteria:

1. The agency is internationally recognized as a leader in disaster relief and as an effective responder to natural disasters; and

2. The agency is a non-partisan, non-governmental entity.

D. The Personnel Director shall provide a report each year by December 31 to the Chair of the Finance and Budget Committee listing the relief agencies and natural disasters that qualified and received donations under SMC 4.34.075(A), as well as the number of hours converted and total dollars donated for natural disaster relief.

Section 2. This ordinance shall take effect and be in force 30 days after its approval by the Mayor, but if not approved and returned by the Mayor within ten days after presentation, it shall take effect as provided by Seattle Municipal Code Section 1.04.020.

Passed by the City Council the ____ day of ________________________, 2011, and signed by me in open session in authentication of its passage this

_____ day of ___________________, 2011.

_________________________________

President __________of the City Council

Approved by me this ____ day of _____________________, 2011.

_________________________________

Michael McGinn, Mayor

Filed by me this ____ day of __________________________, 2011.

____________________________________

Monica Martinez Simmons, City Clerk

(Seal)

Dave Stewart/Barbara Gangwer/sb/Patricia Lee PER Vacation Donation ORD December 5, 2011 Version #10