062606 CC WS AgP
CITY OF SHOREWOOD
CITY COUNCIL WORK SESSION '
MONDAY, JUNE 26, 2006
5755 COUNTRY CLUB ROAD
CONFERENCE ROOM
7:30 P.M.
AGENDA
1. CONVENE CITY COUNCIL WORK SESSION
A. Roll Call
Mayor Love _
Lizee
Turgeon _
Callies
Wellens
B. Review Agenda
2. EMPLOYEE HANDBOOK (Att. - Administrator's memorandum)
3. OTHER
4. ADJOURN
CITY OF
SHOREWOOD
5755 COUNTRY CLUB ROAD. SHOREWOOD, MINNESOTA 55331-8927. (952) 474-3236
FAX (952) 474-0128. www,ci.shorewood.mn.us . cilyhall@ci.shorewood,mn,us
Celebrating 50 Years. 1956 - 2006
MEMORANDUM
TO:
FROM:
DATE:
SUBJECT:
City Council
Craig W. Dawson, City Administrator Ill\.
June 22, 2006 Uj)
Update/Replacement of Employee Handbook (Work Session Item)
The City's last compilation of employment policies in a handbook form was made in 1986. Efforts
were made to update the handbook in the late 1990s, including the formation of an employee
handbook committee. The effort was revived a few years ago with reviews of prior work, review of
other cities' handbooks, and a compilation of further revisions by staff (coordinated by the deputy
city clerk). This compilation was forwarded to Beth Papacek of the City Attorney's Office for further
review to ensure overall compliance with state and federal laws, as well as to make recommendations
for better wording and/or provisions to include in the handbook.
The employee handbook committee was reconvened early this year. It reviewed the draft of
handbook in its entirety, and it had a few questions for response by the City Attorney's Office. The
committee last met in late May and recommended approval of the handbook subject to final Council
action relating to a few sections, and with a comment about one item that it did not have full
agreement on. The City Attorney's Office has also approved the recommended changes.
Copies of the current draft as well as the 1986 handbook are attached. A summary of the changes,
and the reasons for them, is attached and immediately follows this memorandum. Changes generally
are due to state and federal laws that have been enacted (and followed already by the City), policies
adopted by the Council, and additional recommendations by the City Attorney's Office (usually
resulting from case law or regulatory pronouncements). There has also been some reorganization
within the handbook so that there is a more logical flow of the items in it.
Areas to Complete: There are three sections to complete pending Council action:
. Sec. 6.01 - This is an explanation of the City's compensation plan, for which proposed
changes have been placed for Council consideration at the Regular Meeting of June 26,
2006.
. Sec. 7.08 - This is the health and wellness program as recommended by the employee
Benefit Committee in 2005, but not yet approved by Council pending the final report of
the consultant engaged to audit and comment on changes to the City's benefits.
. Sec. 8.03 and Sec. 11.02 - These are the sick leave accumulation and conversion to
severance benefits, respectively, as recommended by the employee Benefit Committee.
This has not yet been approved by Council pending the benefits consultant's report. The
current sick leave accrual is unlimited, and severance is one-third the number of hours on
balance over 450 times the employee's current salary.
t.lT\ PRINTED ON RECYCLED PAPER
.,.
Update/Replacement of Employee Handbook
June 26, 2006, City Council Work Session
Page 2
Matter of Incomplete Agreement: There has been a change in the practice of placing hours in an
employees' vacation balance. In the 1986 handbook, one's vacation hours for the year are placed in
the balance at the beginning of the year. For an employee with fewer than five years of service, for
example, 12 days (84 hours) would be placed in the balance on January 1. If one's five-year
anniversary fell during the upcoming year, then on January 1, 15 days (120 hours) would be placed in
the vacation balance (even if the anniversary date occurred in late in the year).
Sometime at least by the late 1990s, when the City installed some payroll software, the software was
programmed to accrue vacation from pay-period to pay-period, rather than placing a full year's bank
of hours on January 1. Since at least that time, it has been the on-going practice of the City for
employees to accrue vacation on this basis. Any increase in the vacation benefit is reflected on the
employee's anniversary date rather than at the start of the year in which the anniversary occurs.
This accrual basis is consistent with the basis specified in the City's labor agreement with AFSCME.
It is use almost universally by other cities. The accrual basis ensures that when an employee
terminates employment, he/she is paid or uses vacation time earned rather than granted.
Some, but not a majority, of committee members believed formalizing this change in practice would
be viewed as reducing a benefit for employees. Others noted that this practice has been in place for
many years, employees are used to it, and it is fair both to employees and the employer.
The Regular Vacation section, Sec. 8.02, in the draft of the handbook reflects the current practice of
accruing vacation benefits.
City Council Action:
It is anticipated at this time that the Council would review, comment, and ask questions about
provisions and policies in the Handbook. Council could schedule further work session review, or
place it on a Regular meeting agenda for approval in its current extent or when fully complete.
Employee Handbook Updates
1.0 - INTRODUCTION
. 1.01 - Last paragraph - added Attorney language to reflect that this Handbook does not
create a contract between the City and its employees, and that this Handbook supersedes
past practices and written statements regarding conditions of employment.
. 1.02 & 1.03 - Administrative Prerogative and Implementation of Handbook - No changes
. 1.04 - Personnel Covered and Positions Exempt from Handbook provisions was clarified
. 1.05 - Employee Classification and Hours of Work: Added descriptions of types of
employees and hours of work clarified, per Attorney review and current policy.
2.0 - CITY OF SHOREWOOD ORGANIZATION
. 2.01 - 2.05 - Organization's mission statement, management philosophy, City values,
employee management principles, and the organizational chart have existed and have
been updated.
3.0 - EMPLOYMENT
. 3.01 - Equal Opportunity Statement updated per Attorney Review
. 3.02 - Hiring Procedures added (created in 1999)
. 3.03 - Outlines Employment Application expectations (created in 1999)
. 3.04 - Employment of Relatives was updated; with additions per Attorney review
. 3.05 & 3.06 - Clarifies internal promotion opportunities and job physical examination
requirements.
. 3.07 - Drug and Alcohol Testing requirements updated; and reference to Appendix A-
Drug and Alcohol Policy.
. 3.08 - Probationary Period includes minor wording updates; added Subd. 6 on
Performance Reports.
. 3.09 - Grievance Process - No major changes; Attorney recommended adding language
to reflect that each grievance will be addressed as appropriate under the specific
circumstance.
. 3.10 - Personnel Record - Simplified to include what information is needed for the
personnel file and employee access to their file, per the MN Data Practices Act.
. 3.11 - Questions or Problems - no change
4.0 - RESPONSIBILITIES OF EMPLOYEES
. 4.01 Gifts and Endorsements added per MN Statutes
. 4.02 Solicitations and Distribution of Literature added and updated per Attorney review
. 4.03 - Conflict of Interest added
. 4.04 - 4.07 - Time Sheets, Breaks and Use of City Vehicles - no change
. 4.08 - Political Activities subd. 2 added to clarify employee's political rights
. 4.09 - Use of City Communications Resources - updated per Attorney review
. 4.10 - Website Content Policy simplified to reflect what may be posted on City website
and that anything else needs City Administrator approval.
. 4.11 - Offensive Behavior Policy Added per Attorney Review; and the City's Sexual
Harassment Policy is included in Appendix B
4.0 - RESPONSIBILITIES OF EMPLOYEES, continued
. 4.12 - Firearms Prohibited - Added per Council approval in 2003
. 4.13 - Drug and Substance Abuse - added, with reference to City's Drug and Alcohol
Testing Policy in Appendix A
5.0 TRAINING AND DEVELOPMENT
. 5.01 - Education Reimbursement added per Council approval in 2005
6.0 - COMPENSATION
. 6.01 - Wage Administration Plan to be included upon approval by Council
. 6.02 Overtime Hours - #1 updated per Attorney review; #4 added to clarify non-
exempt employees may be granted flexibility in their work schedule.
. 6.03 - Mileage, Meals and Lodging Reimbursements no change
. 6.04 - Exempt Employee Salary Deduction Policy - Added per Attorney review to reflect
state and federal wage and hour laws.
7.0 - EMPLOYEE BENEFITS
. 7.01 - Benefit Eligibility updated to reflect existing policy; proposes increase for opt-out
of health insurance incentive pay from $50 to $100.
. 7.02 - Group Insurance was updated to list all insurance benefits offered, to state that
employees working at least 32 hours per week are provided benefits, and employees
working at least 20 and up to 32 hours may participate in benefits at their own cost.
. 7.03 - Surviving Spouse and Dependent Insurance Benefits - added per COBRA law
. 7.04 Federal Insurance Contribution Act (FICA) Medicare - added per state law
. 7.05 - Public Employee Retirement Association (PERA) - added per state law
. 7.06 - City Deferred Compensation - added per existing policy and state law
. 7.07 Section 125 Pre-Tax Benefit Program - added per existing policy and laws
. 7.08 - Health Management and Wellness Program - New benefit for consideration
8.0 TIME OFF
. 8.01 - Holidays listed have not changed. Eligibility and use requirements added per
Attorney review.
. 8.02 - Regular Vacation Accrual (Item G) was changed to reflect the current practice that
vacation hours are accrued per pay period worked. Former policy language allowed for
vacation days earned for the year to be given to employees at the beginning of the
calendar year for use anytime during the year.
. 8.03 - Sick Leave rules were clarified in Item A to include part-time employee eligibility
requirements. New sick leave cap is proposed for consideration which would put the cap
of sick leave earning at 800 hours, with the option that one-half of the accrued sick-leave
hours over 800 hours may be converted to other benefits at the end of each year.
. 8.04 - Sick Spouse/Partner/Parent/Chi1d Leave was added to include provisions for sick
leave use for these family members.
. 8.05 - Sick Leave Donation Policy was added based on approval by Council.
8.0 - TIME OFF, continued
. 8.06 - Family and Medical Leave Act of 1993 (FMLA) was added to provide a summary
of the FMLA law.
. 8.07 - Medical Leave provision was added to provide employees the option to request a
leave of absence without pay for up to one year after all other leave has been exhausted.
(Previously, extended leave was open-ended.)
. 8.08 - Extended Parenting Leave was added to provide for an extended leave after the
birth or adoption of a child. This leave would provide for up to a total of 5 months of
leave when combined with other allowable time off.
. 8.09 School Leave was added and is granted for parents to attend their child's school
functions up to 16 hours per year (per state law). The employee may use accrued vacation
or request unpaid leave.
. 8.10 - Funeral Leave has changed to allow for up to 5 days of paid leave for immediate
family members (as defined in the policy); 2 days of paid leave for other family members
noted; and 1 day for other relatives or friends. This is now consistent with the funeral
leave policy in the labor agreement.
. 8.11 Educational Leave - no change
. 8.12 - Leave for Service in Organizations - no change
. 8.13 - Personal Leave was added to allow for a leave of up to 90 days, without pay, for
personal reasons, subject to approval by the City Administrator.
. 8.14 - Jury Duty Leave - no change, except that this provision also applies to a
subpoena.
. 8.15 - Military Leave - no change
. 8.16 - Time off to Vote -added per state law
. 8.17 - Bone marrow donation leave - added per prior state law
. 8.18 Breaks for nursing mothers - added per state law
9.0 - SAFETY/HEALTH
. 9.01 - Accident Report policy is added to provide employees with information on filing
an accident report if injured on the job.
10.0 - DISCIPLINE AND DISCHARGE
. 10.01 - Discipline and Discharge - added the step "place on probation" in the Procedures
section; attorney added disclaimer after Subd. 2 list
11.0 - LEAVING CITY EMPLOYMENT
. 11.01 - Termination: minor changes in wording per Attorney review
. 11.02 - Resignation and Severance Pay: Rate of Severance Pay proposed to be changed
from: payment of one-third (1/3) of unused sick leave in excess of 400 hours
to: payment of 50% of sick leave hours up to a maximum of 400 hours of
payout (this calculates to a sick leave balance of 800 hours).