Based on a survey of employees, the short-term cost of the vacation sell-back is projected at approximately $10,997 for an additional up to 40.0 hours and $21,994 for an additional up to 80.0 hours. However, permitting employees to sell back vacation time will actually save money over time by reducing the long-term liability on the Agency's balance sheet at current pay rates vs. higher pay rates in the future as this is money owed by law to the employee. Additionally, fringe benefits costs such as pension will not have to be paid on the hours sold back, resulting in additional Agency savings.

COVID-19 Protection Protocols
Due to the recent spike in COVID-19 cases in Monterey County, no change has been made to the protocols since the Board reviewed these in June. All Board and Committee meetings are expected to remain remote, perhaps through the end of 2020.  In support of the shelter-in-place and our Go831 trip reduction mission, staff will be encouraged to continue to work from home as much as possible. 

Vacation sell-back
Employees continue to accrue vacation at their regular rates, but many have cancelled vacations due to flight restrictions and the shelter-in-place requirement.  Current Agency policy sets a 40 hour limit on vacation sell-back, and an accrual limit of 260 hours for regular employees. Given the financial benefits of limiting excess vacation accrual, it is beneficial for both the Agency and employees to allow a one-time increase in vacation sell-back of up to 40 or 80 hours in the coming fiscal year.  This sell-back would still be subject to the requirements for the current sell-back provisions, including requiring the employee to retain a minimum of 80 hours on the books after the sell-back.  

Staff asks for Executive Committee consideration of increasing the vacation sell-back amount by either 40 or 80 hours.