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HomeMy WebLinkAboutWK December 11, 2001 - CITY OF ANDOVER I 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304. (763) 755-5100 FAX (763) 755-8923. WWW.CI.ANDOVER.MN.US Special City Council Workshop, Tuesday, December 11,2001 Conference Room A Call to Order-7:00 PM -~ 1. Post-Retirement Medical Severance Program 2. Personnel Policy Revisions , / 3. Use of City Facilities 4. Other Business 5. Adjournment J \ CITY OF ANDOVER I 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304. (763) 755.5100 FAX (763) 755-8923. WWW.CI.ANDOVER.MN.US TO: Mayor and Councilmembers FROM: John Erar, City Administrator SUBJECT: Post Retirement Medical Severance Program - Proposal DATE: December 11,2001 INTRODUCTION Over the course of the last several months, a representative employee proposal to enable a City funded post-retirement medical severance program has been examined to determine the feasibility of introducing this program for organizational implementation. Under the proposed program, employees who have accrued sick leave during their tenure with the City would be able to convert sick leave balances into a qualifying medical expense payment account that would be administered by the City for the payment of retiree medical insurance premiums and/or other / qualifying medical expenses similar to a Section 125 plan. From the employee's perspective, the rationale supporting this program argues that sick leave accruals earned by the employee should remain with the employee as a matter of equity and fairness, and should be used to reward the retiree for not having used up their sick leave balance during their employment with the City. The point of fair and equitable treatment compares an employee who uses all or most of their sick leave and thus enjoys time off through the questionable use of their sick leave vis-a-vis an employee who has chosen to take sick leave only when absolutely necessary, and consequently ends up with losing a large portion of accrued sick leave at the time of retirement. From a management perspective, sick leave is provided as an insurance program for employees who must take time off due to a legitimate illness, and is not viewed as personal leave time. To deter possible misuse of sick leave, the City has policies in place that would discipline an employee for abusing sick leave. In terms of severance benefits, the City provides employees with payment of up to 50% of accrued sick leave to a total of 400 hours. A review of other municipalities confirms similar personnel benefit practices as it relates to sick leave policies and severance benefit programs. With respect to post-retirement programs offered to public employees, there is very little information on other communities that offer this type post-retirement medical care benefit. County government, such as Stearns (included in the survey) and Anoka County have established programs for retirees health insurance. I have attached a copy of the Anoka County Board Resolution for Council review. Personal knowledge of cities who have offered this type of post-retirement benefit suggest that they have re-examined this type of program due to the significant long-term financial liabilities and funding implications associated with future retirees who may choose to participate in post- retirement health insurance premium programs. It can be a very expensive proposition for a jurisdiction over time. DISCUSSION In review of the concept of a post-retirement program as originally submitted by representative City employees, their program request calls for a 100% payout of accumulated sick leave, with no limit or cap on benefit hours that would be paid out into post-retirement account. The City would administer individual retiree accounts to be used for medically related expenses such as insurance premiums, qualifying medical reimbursements and would retain the interest earned to recover administrative processing costs. In review of the original proposal, the Finance Director, Human Resources Manager and my office have studied the representative employee proposal and conducted a thorough analysis of the long-term cost implications associated with adoption of this type of program. The Human Resources office conducted a survey of other communities and has discovered that very few cities offer such a program to their employees, and for those jurisdictions that have put such a program in place, plans to scale back this benefit to future employees have been implemented. / In concept, allowing retiring" employees to transfer their sick leave accruals to a post-retirement account for medical expenses using existing payout percentage guideline may have merit and is not necessarily a more expensive proposition for the employer. In fact, payroll taxes on converted sick leave would be avoided by both the City and the employer as the account would be tax- exempt as long as the funds are used for medical-related expenses. Management, however, would still not recommend using a 100% payout percentage as originally proposed. City guidelines currently in place offering up to 50% payout are consistent with accepted benefits practices in many communities As a matter of reference, sick leave, in concept, should not be treated or viewed the same as personal leave time. By definition, sick leave is an employment-related benefit to be used by an employee only in the event of an illness. It should not be viewed under the same light as vacation or compensatory time that is typically paid out at the time of an employee retirement or resignation in good standing. Management, in review of the original employee proposal, is suggesting that Council consider the proposed language under Section 17. Annual Leave, under Post-Retirement Medical Severance Program (attached). In discussions with representative employees, management is recommending a more conservative guideline by maintaining the 50% payout guideline and suggesting the elimination of the 400 hour cap on accrual that is currently in place for severance payout. BUDGET IMPACT Please refer to the Post-Retirement Medical Severance Program - Cost Analysis Worksheet to review budget implications. It should be noted that the analysis takes into consideration only four (4) employees who are within two (2) years of retirement. As Council may anticipate, should this program be put in place it would allow all employees to participate thus increasing the long-term financial liability to the City by the future number of employees in the program multiplied by the total amount of accrued sick leave eventually transferred into a post-retirement medical account. ACTION REQUIRED The review and evaluation of this program has been difficult as there is certainly some merit to the argument of allowing employees to transfer a portion of their sick leave accrual into an alternate post-retirement medical account. Long-term employees who have taken great care to only use their sick leave when medically necessary should have an opportunity to realize some additional benefit, and arguably should be commended for their integrity and diligent observance of City sick leave usage policies. However, my office cannot in a fiscally prudent manner recommend 100 percent payout on sick leave accruals because an employee follows existing policies on sick leave use. I believe that a 50% payout, with the elimination of the 400-hour cap is a more fair and equitable approach to recognizing and rewarding retiring employees who have observed existing City policies on sick leave usage and who now wish to provide for post-retirement payment of health care-related expenses. It should still be noted that even under the more conservative management proposal, the City is offering employment retirement benefits that exceed many of the communities surveyed. Dave Almgren, Building Official / CITY OF ANDOVER TO: JOHN ERAR, CITY ADMINISTRATOR FROM: DAVID ALMGREN, BUILDING OFFICIAL SUBJECT: SICK LEAVE SEVERANCE POLICY DATE: 10/16/2001 CC: MAYOR AND CITY COUNCIL As you know, I have spearheaded this project for the employees for the last 3 years and I believe we are about to put closure to this. This is a project that has a lot of thought put into it along with the ideas and thoughts of the other employees. We believe this is not only a severance policy but also an employee retention program where the employees would be more apt to work than take a sick day. We believe the percentages should be as follows: 30%, 50%, 100% in their respective categories. The interest earned on each fund will be relinquished and shall be used to administer the fund. Over the years there have been several employees who have left the city with little or no sick leave left on the books. Therefore, we would just like to receive the same benefit. / Sec. 17. Annual Leave. G) An employee's unconverted sick leave shall be placed in a banked sick leave account which may be used by the employee under the following circumstances: (I) The City may grant the use of banked sick leave if the employee has exhausted all annual leave aHd-or has been absent from work for 2 consecutive days in the event of a serious illness in the immediate family, employee's illness or injury, or the injury or illness of the employee's child; however, the City reserves the authority to detennine the appropriate usage and number of days of sick leave for serious illness in the immediate family. (2) The City may require that the employee provide a physician's statement certifying the illness or injury prior to granting the use of banked sick time. (3) Employees shall be paid up to 400 hours for unused sick leave at time of tennination of employment from the City, provided the employee leaves the City under favorable conditions and in good standing. The following schedule shall be used in the detennination of pay-off: 20% - two (2) through five (5) years service time 40% - six (6) through nine (9) years service time 50% - ten (10) years service time (4) Post-Retirement Medical Severance Program- If an employee does not wish to take a sick leave payout at the time of retirement they may have the monies dispersed into a separate medical premium account. There is no limit on the number of hours of unused sick leave that can be accrued, subject to the limits below, provided the employee leaves the city under favorable conditions and in good standing. The following schedule shall be used in the determination of pay-off: 20% - two (2) through five (5) years service time 40% - six (6) through nine (9) years service time 50% - ten (10) years service time There is no interest earned on this account - all interest earned will cover administrative costs. This medical premium account would cover all medical related expenses qualified for coverage under a Section 125 plan, the employee would just need to provide the city with an invoice or receipt. Any balance remaining at the time of death of a former employee shall be paid to hislher legal heir. (New 9/01) j Post-Retirement Medical Severance Program - Cost Analysis Worksheet September 20, 2001 1. Employees policy may affect in the next 2 years: . Employee A 1712.33 hours . Employee B 824.46 hours . Employee C 1302.05 hours . Employee D 1347.20 hours 2. Representative Employee Proposal Cost of sick pay at 100% Payout: $128,839.54 . Employee A $46969.21 . Employee B $22853.78 . Employee C $24785.95 . Employee D $34230.60 3. Current Policy Severance Payment Cost: $39,837.80 . Employee A $10972.00 . Employee B $11087.88 . Employee C $ 7614.44 . Employee D $10163.48 4. Management Proposal- Delete 400 hour limit -keep percentage amounts the same 50% payout: $59,419.76 . Employee A $ 23,484.60 856.17 hours / . Employee B $ 11,426.89 412.23 hours . Employee C $ 12,392.97 651.03 hours . Employee D $12,115.30 673.6 hours Proposed Medical Premium Payment Per Retiree for 5 years after retirement 15% increase per year: 0 Single Rate 2002: $258.12 per month x 12 months = $3,097.44/year 0 Single Rate 2003: $296.27 per month x 12 months = $3,555.24/year 0 Single Rate 2004: $340.71 per month x 12 months = $4,088.52/year 0 Single Rate 2005: $391.82 per month x 12 months = $4,70 1. 84/year 0 Single Rate 2006: $450.59 per month x 12 months = $5,407.08/year / City of Andover Survey Prepared by Human Resources Office City Sick Leave and Severance Policies City of Hopkins 11.1 After completion of five years continuous City employment, EMPLOYEES shall be entitled to severance pay calculated by either multiplying the total number of continuous years in the City employ by the daily wage rate prevailing at date of severance, at one and 1/2 days per year of such employment; or 20% of accumulated sick leave if separation occurs after 5 )'~<l!:slJu~ lJef()r~ 1~5~ y~<l!:s,~3?~}L~ ~"~p"<l!:~!!()~"()"cc~rs""~r!~!},?, ),~!:!~,"lJ,~!, before 20 years~c311cl. 3~W~,itse'p~atj211j),2S~ ~ft~(~QY~~~;,}\,lll.ch.~Y~r.is.gt"~~t~rl 11.2 Such severance money shall be paid only in cases where separation occurs for non-disciplinary reasons. We are looking into post-retirement health insurance accounts. However, even if we adopted such a program, 1 don't think we would change our severance amounts. ~!f.):.<<:'.!c~!!l,!:l.Il~...c . ..", ""~",= """"""~'F.."'T'" .... ....,...,... '~C'~"'FCC"C"'"~"""'T"'"~'"" . "~7 [The City of Winona allows employees to accrue 960 hours of sick leave. Upon retirellleIl1:oIlpeIlsion, they.have' theoptl()Il to take 1/3 of their sick leave balan~~iv"~~lj or take 113 of the value of the balance towards healthinsurancepremimns.The ~dvantage of using ittoward health premiums is that theyareableto"lockin"()Ilcih~ purrentcost of health prellliums, and do Jlothave topaYaIlyincreases until their prei .I payment is exhausted... Theydo,howeyer,hav~t2Pa,Y.!illC~~{IStl12lJ.ghtl1eyt22lctl1~~~slj E~()itis'.taxable.incorn~.ig@~y~.l,l[..tl:1eyretir~; City of Brooklyn Park Severance pay in the amount of 50% of accumulated sick leave, not to exceed a max of 45 days of total payout is paid to all regular FT and PT employees leaving employment in good standing after one year. We don't have anything about using sick time to pay for retiree insurance. Sterns County benefits shall be eligible to receive, upon separation from service for any reason, payment for unused vacation accumulated and applicable compensatory time. 16.2 Sick Leave Severance pay pursuant to Section 16.2 shall be provided for separations in good standing only, shall be figured at the rate of pay on the date of separation, and shall be exclusive of any "banked" sick leave earned. I 16.21 Any regular employee, who has at least ten years of service and whose effective date of employment was before June I, 1983, shall be eligible for severance payment equal to 75% of accumulated sick leave for separations occurring as a result of resignation or retirement from disability. 16.22 r~'c"~/""'o"'"<'~"'''~'''''''''''=''=''''' """""~""'>'="S'h';"",,,,,,.,, ""~''''''''^'''T''':''''':''''''''':'''"~''''"''~'''''''': ,~.."."....::."':~'!"'}'.'.".>',: ,,' ".':'.",":","=."O"-'('7""("';"".""""S''"'T'''"'''''''~''''r=""<"."'''''"''~'''"''''''-''""","'';''''~:-''l jAnyregtllar eIlll'loye:who has atleasttenyears of seTVIceand: \Vhoseeffectl):t:; (!ate?feIllploYIllentw~beforeJune 1, 1983,shanbe~ligiblef?ra seyeratlC~ payment e'lualto ..1 OO%ofaccurnulatedsicklea):e.f()rs:Par~~Pl}soccuITil}g~:~ resultofdeath while. acoveredeIlll'loyee.()rr~!i!emt:;ntPll~llill1tt() !t:;tiremt:;Il! QrCLYt~i()Ilsappli~a,ple.t().~E:Mm~mpersJ 16.23 Any regular full-time employee or part-time employee who has elected prorated benefits whose effective date of employment was on or after June 1, 1983, shall be eligible for a severance payment equal to 75% of accumulated sick leave to a maximum payment of twenty-six hundred and fifty dollars ($2,650.00) after at least ten (10) years of service, for separation due to death, retirement, or resignation. 16.3 Escrow f'''''''''''''~''~''-:'":",~",'_''''''''',=_e>^'':'":'"'''",0'~''''''=^-''~-:'"'''''-''''''''''-'".''':'-''"''''''r''':''''''''''''-^"'''''"'''''''?"""''''''~t.":''''''''~''''M.'-'''',.-",,,~,:,--,,,,'-:_,-.-"""""~'-''-''~'-''''''~'-''''''-''',,",'''"'''P'''",":.^'1~'-'^'''~'C':"~^,,,,,",",,,,?,~.:,,,-~,,~,,,,,,;,,;,,.,,,,,,,,-.,,,,-f';'--'-''^'''t''.-.-';';'""~"''''''''''''! f'\ll eIllployee>>,ho. elects to ~.:maill on. the CoUllty insuranc.:progranlpffered by Src(;!i()I! / 15.3 may elect to leave: all. or partOf bisiherseverance paymentin .escro\V\Vith the ~ounty to beusedforinsurance premiums. Amounts leftinescrowwillnRt earn interest] 2!!Lill1Yc.2il!ill1(;~rt:;cma,illiIlg..!1:l:a,YctJ~c>>'!t.l1g[!l>>'1l2YJh~ f()f!lJ:~[...~mpI2Y~~..!ltl:l.IlYJim~.. c~y, balance remaining at the time of death of a former employee shall be paid to his/her legal heir. City of Blackduck . We recently updated out personnel policy and included that particular option. Employees ~can..~cc~r...llpt? ..960 hoursETt.ft~I::~.~EY~.[l):s~eR?YQGf?t~Q~~Ilf~Il'98Ii~~~gs~cl.]()~[l):cl. h~a,H.hjll!i!!f(l.[)g~l Less than 20 years the payout is 25%. Sick time accrues at approximately 3.70 per pay period. City of Cottage Grove We don't have sick leave, but an Annual Leave program. We have looked into letting employees bank their accrued annual leave when they retire to use for paying premiums, but have been advised that there could be tax consequences. Basically, since our policy states that they are eligible to cash out the annual leave upon separation of employment, it would be considered "constructive reciept" and they would have to pay taxes on the entire amount even if they left it in the "city bank" for payment of future premiums. , City of Eagan Eagan pays severance to employees who.h~vi \vor~ed at least five years at50~ of a~cllII!ulatio1!. We also allow employees to cash in sick leave under the same arrangement to pay for wellness activities, deferred compensation, medical expenses not covered by insurance (such as the laser eye surgery, and health insurance premiums. ,g~,l)~,l!ast!n.gs_~"" """ ~, '"~~""_"~'"" ""~,~" ._.""",'.,,,,"," For pre-1993 hired employees who have worked at least 10 years, we will pay: for 100% of the health insurance premium for a period of 10 years or unti! they reach the age of Medicare, whichever comes first. They can select either single or family coverage, but must be enrolled for at least 6-months in theirpost-retireII!entcoverage choice forthe City ,to pay for it; For post-1993 employees, we do not have any post-retirement health care coverage paid by the City. It is a perennial union request, but we will not do it due to the cost. Currently, we are paying almost $13,000 a month for retiree coverage, which will only increase in the next few years, as we anticipate several more qualified retirements. City of BurnsvilIe Bumsville allows most of our employee groups to accrue up to 960 hours of sick leave. The maximum payout is: After 10 years - 50% of sick leave accrual up to a maximum of240 hours and ~jleO~fy~ars::J<lO%ofsJck le~~~ IF'''''''?F~'~'.,,.': ":0~~:""""~'T7"~""'""-"~'~''''''':'''''''''''-'''''''''''''''-''",,-^-'"--~->r'-'c""':~~-~""ry aC<:l1!lllup,to a maxiInum of 480 h!-lurs~ At this point we do not allow severance to be used to pay for future medical insurance premiums but that is something that we are interested in exploring in the next year. Anoka County Pays 100% of retiree employee only premiums. / -" /J./.bP- ~ . RESOLUTION #2001-6 RESOLUTION CONCERNING EMPLOYER CONTRIBUTION TOWARD HEALTH INSURANCE COVERAGE FOR RETIREES WHEREAS, it has been the long-standing position of the Anoka County Board of Commissioners to recognize retired employees of Anoka County for faithful and dedicated service to the citizens of Anoka County while in the county's employment; and, WHEREAS, one of these forms of recognition previously established by the Anoka County Board of Commissioners as a matter of policy is the extension of county .group health insurance programs to those persons who have retired after at least 10 years of benefit-eligible, county service; and, WHEREAS, the Anoka County Personnel Rules and Regulations describe the conditions under which the county intends to fund all or part of health care benefits for eligible retirees; and, WHEREAS, there is a need to confirm the funding for the county's desire to contribute to eligible retirees' health insurance premiums, for at least the length of the current budgetary cycle: NOW, THEREFORE, BE IT RESOLVED that the Anoka County Board of Commissioners authorizes the following contributions toward health insurance coverage for retirees with the requisite amounts of benefit-eligible service: 1. When a retiree has completed at least ten but less than fifteen full years of benefit-eligible service with Anoka County, the county shall pay: A. One-half of the employer's contribution established each year for its active employees toward single health coverage; and, B. $2.65 per month for each full year of service toward the county's family health insurance plan. 2. When a retiree has completed at least sixteen but less than twenty- one full years of benefit-eligible service with Anoka County, the county shall pay: A. The full amount of the employer's contribution established each year for its active employees toward single health coverage; and, ",. . B. $3.60 per month for each full year of service toward the county's family health insurance plan. 3. When a retiree has completed at least twenty-two but less than twenty-nine full years of benefit-eligible service with Anoka County, the county shall pay: A. The full amount of the employer's contribution established each year for its active employees toward single health coverage; and, B. $4.15 per month for each full year of service toward the county's family health insurance plan. 4. When a retiree has completed at least thirty full years of benefit- eligible service with Anoka County, the county shall pay: A. The full amount of the employer's contribution established each year for its active employees toward single health coverage; and, B. $4.60 per month for each full year of service toward the county's family health insurance plan. BE IT FURTHER RESOLVED that in no event shall the county's contribution exceed the cost of the retiree's health insurance premium. BE IT FURTHER RESOLVED that this resolution does not affect pre- existing employment contracts. Motion carried unanimously. Resolution declared adopted. J CITY OF ANDOVER 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923. WWW.C1.ANDOVER.MN.US TO: Mayor and Council members CC: John Erar, City Administrato~ FROM: Dana Peitso, Human Resources Manager ~ SUBJECT: Personnel Policy Changes DATE: December 5, 2001 Over the course of the last several weeks, the management team has discussed a number of proposed changes to City personnel policies. Revisions to existing policy were deemed necessary and appropriate for the following reasons: I) to clarify ambiguous language, 2) to update policy language due to changing statutory requirements, 3) to promote organizational practices that build positive organizational morale, 4) to ensure equitable and lawful City requirements; 5) to clarify and document organizational practices; and 6) to correct staff titles. Revisions to the following personnel policies have been reviewed by the City Attorney. Proposed changes will be reviewed with Council at the December 11, 200 I Council workshop. j Sec. 2. Definitions. (a) When used in this Chapter the following terms shall have the meanings ascribed to them: (1) City: Shall refer to the City of Andover as the employer, the City Council and its agents. (2) Employee: An individual employed in a permanent position. (3) Full-time Employee: An individual employed in a position that is regularly scheduled for a 40 hour work week for 52 weeks in a calendar year. (4) Part-time Employee: An individual employed in a position that is scheduled for 52 weeks in a calendar year, but less than 40 hours per week. (5) Seasonal Employee: An individual employed in a position that is scheduled for less than 52 weeks in a calendar year regardless of the number of hours scheduled per work week. (6) Salaried Employee: An employee who IS exempted from the provisions of the Fair Labor Standards Act. (7) Hourly Employee: An employee who is subject to the provisions of the Fair Labor Standards Act. (8) Initial Date of Employment: An employee's initial date of employment shall be based on the fIrst date of consecutive employment in the employees current position, except as may be modifIed by other provisions and actions affecting an employee's anniversary date. (9) Anniversary Date: If an employee's starting date is on or before the fIfteenth (15th) of the month, the anniversary date will be the fIrst of that month; if the starting date is the sixteenth (16th) day of the month or later, the anniversary date will be the first of the / following month. (10) Calendar Year: Beginning J.une-Januarv I and ending December 31. (11) Immediate Family: Mother, father, husband, wife, son, daughter, brother, sister, son-in law, daughter-in-law. grandchild or grandparent of the employee or employee's spouse. (12 Job applicant: a person who applies to become an employee of the City and has received a iob offer made contingent on the person passing drug testing. Sec. 3. Employment Practices and Procedures. (i) Applications for employment shall be encouraged from all interested parties. (b) Selection of a candidate for a vacancy shall be made on the basis of qualifications for the position, regardless of race, color, creed, religion, national origin, marital status, disability status, with regard to public assistance, political affiliation, sex, age, and sexual orientation. (c) Procedures for recruitment, interviewing, and selection of personnel shall be under the direction and authority of the City Administrator in compliance with all appropriate statutes, rules, and regulations. (d) Position vacancies within the City shall be posted internally when appropriate. (e) At no time will any relative be supervised by a family member. (f) Employment in any full-time position is subject to approval by the City Council. However, at I the discretion of the City Administrator, or designee, a provisional appointment may be approved until the Council's employment action. (g) Section 3 shall apply to all full-time, part-time, and seasonal positions of the City of Andover including those represented by a bargaining unit. (h) TIle City of Andover will fully complv with all requirements of the Americans with Disabilities Act. (i) Drug testing and criminal background checks are required for all iob applicants. Sec. 6. Dismissals, Suspensions and Demotions. (a) The City will discipline, suspend, demote or dismiss employees for just cause only. The following are deemed appropriate forms of discipline; however, the level and order of discipline shall be at the discretion of the City, based upon the nature of the infraction: (1) Oral reprimand and warning; (2) Written reprimand; (3) Suspension without pay; (4) Demotion; or (5) Discharge. (b) Written reprimands, suspensions, demotions and terminations shall be issued in writing. (c) In accordance with Minnesota Statute, an employee may request a written statement of the I reasons for discharge from employment within 15 working days of such discharge. (d) Disciplinary actions in accordance with sub-sections 6(a)(I) and 6(a)(2) may be carried out by the appropriate supervisor. Additionally, a supervisor may temporarily relieve an employee of duties for the remainder of a shift or work assignment with pay. (e) Disciplinary actions in accordance with sub-sections 6(a)(3), 6(a)(4), and 6(a)(5) may be carried out by the City Administrator, or designee. / 2 _(f) The Council shall take final action relative to the discharge of an emplovee as recommended bv the City Administrator. The emplovee shall be given ,,,ritten notice of such recommendation and shall have the right. within five (5) working davs after receipt. to appeal such recommendation. Bv mutual agreement. the employee and the City Administrator may ) request the State Bureau of Mediation Services to appoint a single arbitrator to hear the case or the emplovee mav choose to submit their appeal to an Arbitration panel. The arbitration panel shall consist of three (3) qualified arbitrators. with one member chosen bv the City, the second member chosen bv the emplovee and the third member to be determined bv the first two arbitrators. All reasonable and customarY costs incurred bv the three arbitrators within the twin cities metropolitan area shall be shared equallv between the City and the emplovee. The arbitration panel shall consider all evidentiarv infonnation that it deems relevant presented bv the City and the employee. The decision of the Bureau of Mediation Services arbitrator or the three member arbitration panel shall be referred to the Council for use in its deliberations on final action. (g) Section 6 shall apply to full-time and part-time employees. (h) Due to the length and nature of seasonal employment, a seasonal employee may be discharged for no cause at the sole discretion of the City. Sec. 17. Annual Leave. (a) For purposes of this provision eligible employees shall be defmed as those full-time employees who have selected annual leave in lieu of sick leave. (b) Employees employed prior to June I, 1996, who select annual leave shall waive all future rights to earn vacation and sick leave. Employees not selecting the option of annual leave during the prescribed open window period shall waive all future rights to select annual leave I in lieu of sick leave and vacation. Employees hired after June I, 19%, are not eligible for vacation and sick leave, but will be eligible-feF-amlUalleave. / Sec. 18. Vacation Leave. (a) Full-time employees employed pFieF-t&June I, I 996,-and-who have not selected the annual I leave program at the time of implementation shall be eligible, at a minimum, to earn vacation leave in accordance with the following schedule. The City Administrator, or designee, may authorize modification of an employee's vacation accumulation schedule with Council approval. (I) 0 through 5 years: 3.08 hours each 2 weeks of work (2 weeks annually). (2) 6 through 10 years: 4.62 hours each 2 weeks of work (3 weeks annually). (3) 11 + years: 6.16 hours each 2 weeks of work (4 weeks annually). (b) Employees should be encouraged to take vacations on a regular basis; however, employees shall be allowed to accumulate up to a maximum of200 hours vacation leave determined as of the individual employee's anniversary date. Employees shall forfeit any vacation unless given prior approval bv the Citv Administrator to carry excess vacation leave into current year for use within the following 6-month period. Anv vacation leave not used wiII be forfeited Sec. 18.1 Use of Comp Time (a) Comp time may be used in one hourH minute increments,.}WI tfJ exceed-16.Jwurs pe.- week I / 3 Sec. 19. Sick Leave. (a) Rate of accrual: Full-time employees employed prior to June 1, 1996, and who have not I selected the annual leave program at the time of implementation shall earn sick leave at the rate of 3.69 hours for each 2 weeks of service. An employee shall be eligible to use sick leave (i) Extended illness: Extended illness which continues beyond the limits of any employee's paid sick leave accrual may be considered for coverage. A supervisor wishing to recommend such a consideration should send a written recommendation to the City Gouoc-tl-Administrator for a I fmal determination. If extended sick pay is approved, one of two options will be available for extending sick leave pay: (1) The extended sick pay will be charged against the employee's future sick leave accrual which will resume under the usual stipulations when the employee returns to work on a permanent full-time basis, or; (2) Extended sick pay may be granted through the voluntary donation and transfer of accrued sick leave from other employees. An employee may donate up to a maximum of 5 days. An employee may receive up to 30 working days sick leave for anyone occurrence. Sick leave shall be donated and received on an hour for an hour basis. No consideration for differences in wage rates shall be applied to the transfer. Before the extended sick pay begins, all of the employee's vacation, compensatory time and floating holiday must have been taken, either prior to or during the illness. Sec. 20. Injured on Duty. (a) Reporting of Injuries: An employee injured on the job shall notify their supervisor I immediately. The supervisor must submit a "First Report ofInjury" to the Gity-QerkHuman Resources Manager the day the injury occurs. If the injury requires attendance by a medical doctor, the employee is directed to seek immediate medical attention. j (b) Injured on Duty: An employee injured during the performance of job duties and unable to work, shall be paid according to the Minnesota Workers Compensation Regulations. An injury that does not result in compensation under the Workers' Compensation law shall not be compensable in accordance with this article. An employee injured on the job in the service of the City and collecting worker's compensation may draw from the employee's accumulated sick or annual leave for the fraction of the day(s) not covered by worker's compensation. In no instance shall the total amount of monies received by an employee exceed the employee's current base rate of pay. Sec. 21. Leave of Absence for Medical Reasons. (a) Non-Probationary Employee: A non-probationary employee may be granted a leave of absence for medical reasons. A leave of absence for medical reasons in excess of 30 consecutive calendar days may be granted at the discretion of the City Administrator for up to 1 year, inclusive of consecutive time away from work, at which time the leave shall be reviewed and the employee may be discharged. (b) Probationary Employee: A probationary employee may be granted a leave of absence for up to 10 consecutive days for medical reasons. A leave of absence for medical reasons in excess of 10 consecutive calendar days may be granted at the discretion of the City Administrator for up to 30 calendar days, inclusive of consecutive time away from work, at which time the leave shall be reviewed and the employee may be discharged. (c) An employee may continue to use accumulated leave during the leave of absence for medical reasons, and shall be eligible for employer provided benefits until the employee's accumulated leave has been exhausted, at which time the employee may continue group insurance coverage / at the employee's expense (except when emplovee qualifies under FMLA Sec. 26). A I 4 returning employee shall be assigned to a position similar to the one held at the time the leave commenced. Sec. 28. Unapproved Absences. (a) An employee must receive prior approval for an absence from work. An employee absent from duty without approval of the employee's Department Head, or designee, may be subject to disciplinary action up to and including discharge. (b) An employee who is habitually absent from work without prior pennission or approval may be subject to disciplinary action up to and including discharge. Excessive tardiness is defined as 3 or more tardies in a one ( I) month period. Excessive unapproved absenteeism is defined as more than 16 hours of absences in a calendar year. (c) An employee who is absent from work without approval for 2~ consecutive work days shall be considered to have voluntarily resigned from employment with the City. unless circumstances beyond control can be provided to the Department Head and/or City Administrator, (d) Section 28 shall apply to full-time, part-time, and seasonal employees. Sec. 33. Tuition Reimbursement Program. Purpose: The City of Andover encourages its employees to improve skills and knowledge through education. To assist employees in obtaining personal job related education and career goals, the City offers the following tuition reimbursement program to eligible employees. (a) Eligibility: Eligibility for the reimbursement program shall be based on the following criteria: (I) Full-time employees, including those represented by a bargaining unit, upon successful completion of the initial probationary period with the City, or as individually agreed, shall be eligible to apply for reimbursement of job related educational courses under the City's tuition reimbursement program. (2) This program is voluntary and as such, all course work shall be completed outside nonnal working hours. (3) In order to be considered for tuition reimbursement, the course or degree program must be directly related to the employee's current job or to a position to which the employee could be directly promoted within the City. (4) Tuition reimbursement shall be considered only for course work taken at recognized accredited colleges, vocational schools or approved adult educational programs. (5) Tuition reimbursement fonns are available from the Per:;onnel Human Resources I ManagerDepartment. (b) Approval: In order to be eligible for tuition reimbursement, all requests for course work or a degree program must receive prior approval from the appropriate Department Head, City I Administrator and Per:;onnel DirectorHuman Resources Manager. (c) Reimbursement: An employee shall be eligible for reimbursement in accordance with the following. (1) Upon successful completion ofa pre-approved educational course, the City shall reimburse the employee for cost of the course tuition and other associated fees not to exceed the equivalent of the cost of tuition at the University of Minnesota for comparable / courses. At the discretion of the City the tuition reimbursement maximum may be waived 5 for certain job-related accelerated undergraduate degree programs. The City shall not reimburse the employee for necessary textbooks and materials, meals or travel expenses. Expenses for which the employee could be compensated through other educational incentive programs, such as the GI Bill, will not be covered. Doctorate-aHd--lflW-S€hee!- I degrees and courses shall not be eligible for tuition reimbursement under this polioy. (d) Section 33 shall apply to all full-time employees, including those represented by a bargaining unit. Sec. 33.1 Convention Attendance (a) Conventions, seminars, workshops or conferences of a national scope or regional (multi- state) gathering of national groups, may be attended by department heads. In some cases, a division head or department head's assistant (someone frequently designated to act in his or her absence) may attend a conference if the gathering is specifically related to their technical area. In all cases, specific approval by the department head and City Administrator is necessary. In all cases, the individual attending national conferences will be on their own time durin;; the confcr{)fJce and-for all travel related time occurring on Saturdav or Sundav., using either oomp time or vacation. (b) State or pre-approved bordering state conventions, seminars, workshops and conferences may be attended by department and division heads or their designated representatives. Attendees may include any employee if the convention directly relates to their area of work. In all cases, specific approval by the department head and city administrator is necessary. (c) Metropolitan area gatherings may be attended by any employee designated by his or her department head. (d) Employees should be aware at all times that they are representing the City of Andover while attending any conference, meeting seminar or convention. Employees should conduct themselves as if they were at work. Improper conduct at any City authorized or sponsored / event reflects poorly on the City and will be subject to disciplinary action as if it occurred during regular working hours. (e) Any costs associated with the conference or travel that exceed budgeted amounts shall be the responsibility of the employee. Sec. 35. Uniforms. Policy: The City of Andover provides uniforms for employees of Public Works to be used onjob related duties and not to be worn after hours. These unifonns identify emplovees to the public and must be worn during working hours. (a) The City of Andover will also provide an allowance to Public Works Employees for the purchase of work boots. This allowance is to be determined on an annual basis. Sec. 37. Employees and Their Membership in the Andover Volunteer Fire Department. (a) If an employee is working an 8 hour shift, 3 hours of training is allowed. If an employee is working a 10 hour shift, training can only be during off work hours. (b) Attendance at fife drills shall be on a volunteer basis and shall not be considered a part of the normal work week. On scheduled training days for the Fire Department, employee- volunteers I I 6 shall make up their hours that same day. The Fire Chief and Public Works Superintendent will agree on the hours set aside for Fire Department Training. Only those employees working an eight (8) hour shift can participate in training during days. (c) Employees shall be allowed sixteen (16) hours paid per year for Special Training. This 16 hours of training is to come from the Fire Department Training Budget. Supervisors must be notified two weeks in advance prior to training. (d) When fire or rescue calls occur during City working hours, two employee volunteers are automatically relieved of other duties and will immediately respond to the fue or rescue call. Other employee volunteers would respond only for a general alarm. Once on the fue call, City employees are responsible only to the Fire Chief or Fire Officer in charge and remain under his/her charge until relieved from duty. (e) Time spent by City employees on fue/rescue calls will be charged to the Fire Department budget. (f) The Fire Chief or Fire Officer will relieve all but one City employee as soon as they return to the station and the others when their assignment is done. (g) All City employees returning to Public Works will punch back in and write in their call out time. (h) No City employee will respond to fue or rescue calls while on their week of Mer-HoorPager I Duty with the Public Works Department. (i) No Public Works/Firefighter employee will respond to fue calls while on a high priority work assignment without the approval of their supervisor. The Fire Department will not penalize Public Works/Firefighters if they are on a high priority work assignment and cannot report to a fue call. Sec. 39. Sexual Harassment Prevention Policy. Policy: Sexual harassment and sex discrimination are against the law. It is the policy ofthe City of Andover to abide by the federal and state laws which prohibit sexual harassment, intimidation or coercion. The supervisory and management personnel of the City are responsible for implementing this policy. (c) Employee Responsibility: All employees shall be careful to treat their co-workers, subordinates, and supervisors with respect at all times. (d) Reporting: The following procedures may be used by any employee for reporting any form of harassment: (I) Any employee who feels that he or she is being subjected to sexual harassment in any form, shall, if the aggrieved employee feels comfortable in doing so, inform the person engaging in the sexual harassing conduct or communication that such conduct or communication is offensive, against City policy, and must stop. (2) Or, an employee may contract the employee's supervisor or department head if the employee is comfortable in doing so. The employee may also contact: i. City of Andover Personnel DirectorHuman Resources Manager I ii. City of Andover City Administrator (3) Any employee who becomes aware or is concerned about a perceived incident of sexual I harassment is encouraged to report this activity to the Personnel DirectorHuman Resources Manager, City Administrator, a supervisor or a manager. ) (4) Any supervisor, manager or Department Head receiving a report must contact the I Personnel DirectorHuman Resources Manager or City Administrator. 7 Sec. 40. Workplace Use of Physical Force by Employees. (a) All employees of the City of Andover are prohibited from any use of physical force or physical enforcement unless the employee determines that any of the following conditions exist. (I) Physical force is necessary to protect the health and welfare of the person involved. (2) Physical force is necessary to protect the health and welfare of others. (3) Physical force is necessary to protect the health and welfare of the employee in self- defense. (b) Section 40 shall apply to all employees, including those represented by a bargaining unit. Sec. 40.1 Workplace Violence Prevention The City of Andover is committed to preventing workplace violence and to maintaining a safe work environment. The city has adopted the following guidelines to deal with intimidation. harassment. or other threats of (or actual) violence that may occur during business hours or on its premises. All employees. including supervisors and temporaty employees. should be treated with courtesy and respect at all times. Employees are expected to refrain from fighting, "horseplay." or other conduct that may be dangerous to others. Firearms. weapons. and other dangerous hazardous devices or substances are prohibited from the premises of the city without oroper authorization. Conduct that threatens. intimidates. or coerces another employee. a customer, or a member of the public at any time. including off-duty periods. will not be tolerated. This prohibition includes all acts of harassment including harassment that is based on an individual's sex, race. age, or any characteristic protected by federal. state, or local law. All threats of(or actual) violence, both direct and indirect. should be reported as soon as possible to your immediate supervisor or any other member of management. This includes threats by employees, as well as threats by customers. vendors. solicitors. or other members of the public. When reporting a threat of violence, you should be as specific and detailed as possible. All suspicious activities should also be reported as soon as possible to a supervisor. Do not place yourself in peril. If you see or hear a commotion or disturbance near your workstation. do not trv to intercede or see what is happening. The city may take appropriate action when dealing with customers, former employees. or visitors to the facility who engage in violent behavior. Such action may include notifying the police or other law enforcement personnel and prosecuting violators of this policy to the maximum extent of the law. The city will promptly and thoroughly investigate all reports of threats of (or actual) violence and of suspicious individuals or activities. The identity of the individual making a report wil\ be protected as much as is practical. In order to maintain workplace safety and the integrity of its investigation the city may suspend Employees. either with or without pay, pending investigation. S Anyone determined to be responsible for threats of (or actual) violence or other conduct that is in violation of these guidelines will be subiect to prompt disciplinarv action up to and including termination of employment. The city encourages emplovees to bring their disputes or differences with other employees to the attention of their supervisors or the Human Resources Manager before the situation escalates into potential violence. The city is eager to assist the resolution of employees' disputes. and will not discipline employees for raising such concerns. Delete Section 41. Life Threatening or Catastrophic Illness, replace with Computer Usage Section. Sec. 41 Computer Usaqe Computers. computer files. the e-mail system, and software furnished to Employees are the City of Andover property intended for city business use. Employees should not use a password, access a file, or retrieve any stored communication without authorization. The city strives to maintain a workplace free of harassment and sensitive to the diversity of its employees. Therefore, the city prohibits the use of computers and the e-mail system in ways that are disruptive. offensive to others. or harmful to morale. The city purchases and licenses the use of various computer software for business purposes and does not own the copyright to this software or its related documentation. Unless authorized by the software developer. The city does not have the right to reproduce such software for use on more than one computer. Employees may only use software on local area networks or on multiple machines according ; to the software license agreement. The city prohibits the illegal duplication of software and its related documentation. Employees should notify their supervisor or anv member of management upon learning of violations of this policy. Emplovees who violate this policy will be subiect to disciplinary action, up to and including termination of employment. THE INTERNET - Emplovees mav not use the city computers to view or download information from the Internet. which thev are not authorized to view or download. Copyrighted images and files downloaded from the Internet carry the full protection and penalties of the copyright law. The user is responsible for being aware of the copyright restrictions before downloading. modifying. or reproducing any images or files from the Internet. Workplace Monitorina Workplace monitoring mav be conducted by the city. upon complaint of violation ofCitv policv to Human Resources. Department Head or City Administrator, to ensure quality controL employee safety. security, and customer satisfaction. Computers furnished to Employees are the property of the city. As such, computer usage and files may be monitored or accessed. Emplovees can request access to information gathered through workplace monitoring that I may impact employment decisions. Access will be granted unless there is a legitimate business reason to protect confidentiality or an ongoing investigation. 9 Because the city is sensitive to the legitimate privacy rights of employees. every effort will be made to guarantee that the workplace monitoring is done in an ethical and respectful manner. / Sec. 42. TRANSPORTATION EMPLOYEE DRUG AND ALCOHOL MODEL POLICY UNDER THE OMNIBUS TRANSPORTATION EMPLOYEE TESTING ACT. ALCOHOL AND CONTROLLED SUBSTANCES CONTACT PERSON The City designated contact person will coordinate the implementation, direction, and administration of the City's alcohol and controlled substances policy. The contact person is the principal contact for the collection site, the testing lab, the MRO, the BAT and the person tested. Employee questions concerning this policy should be directed to the contact person. The designated contact person is: Name: Jerm McGann Dana Peitso Position: Fffiance Director Human Resources Manager Phone: ~B-J.OO763-767-5 143 / 10 , , John Erar From: JTrude01 01@aol.com Sent: Tuesday, October 09, 2001 1 :58 PM ,To: JErar@ci.andover.mn.us ~ Subject: Re: Use of City Facilities ~ ~ John, 9~. "0 Thank you for talking to Frank. It is surprising to learn of this policy ~ so I would like the council all provided w / a copy, w / our next packet would ~ be soon enough, at my request. If a memo is attached, it could state the ~ following: I wonder whether we have fully evaluated the liability issues this policy presents. 1. OSHA concerns. Individuals repairing motorized vehicles are suspectible to injury and may not have anyone who can provide aid if they are working alone in a remotely located building. OSHA may require public employees to have other workers in the vicinity. I don't think waivers are effective in these situations where workers are protected by federal law. 2. No supervision. With no supervision of an individual's use of equipment and facilities there is a possibility of damage to equipment, theft or nususe. 3. Safety issues & city image. I would feel terrible if someone was injured in our city garages and there was no one around to assist them or come to their aid. I think it would tarnish our city image. 4. Security issues. In this time of random acts of terrorism and potential copycat crimes we need to reevaluate the security of our public buildings. When any individual in public works has access 24 hours to city ,facilities, our sheriff's patrol may not recognize when having bulidings lit or vehicles parked outside of these buildings at odd times is normal or adnormal activity. Perhaps the list of potential issues is quite lengthy considering that Frank Stone was opposed to this policy when it was advocated by his crew. Thank you. Julie Trude Please forward this to Frank Stone if you believe it would be helpfuL --JT ioMOI ~c.J. cUY-rv~ 'v; ~W C f~ V~I (' DlC 1ft _, ,11 c~ '-\ ')) J\\' \ C\ f\.("v kJ U,,1'C<.<'! 0~CL<> 1 Gl~ ttl ~c..c... ~~ ~V&-i"'S . The City of Andover Public Works Facility Use Policy While there is some general understanding of the City regulation and safety concerns for employees, city equipment and the security factor of keeping track of who is working within the Public Works Maintenance Area, it is believed that the following will serve as a guide for current and new employees. Use of Facilities: The City's facilities when not in use by the City, may be used by full time permanent employees for light maintenance, such as the following: . Vehicle Washing . Oil changes, tire rotations, changing batteries, changing alternators, waxing vehicles A. Vehicle washing - employees can stop in without being pre-approved to wash vehicles. Building C is the onlv area that can be used for washing vehicles. Complete the sign- in/sign-out sheet on the shop wall and clean area when done. City vehicles CANNOT be moved to accommodate space for your vehicle. Wash times are as stated in this policy. Any employee using the shop for this purpose, must have a signed requesUwaiver form on file for the year prior to use. -- B. Weekdays, Monday - Friday, employees will be able to use the shop for up to two hours after their shift has ended. Vehicle washing can be done during lunch hour, if the area is open to do so. C. Weekend hours will be 7:00 a.m. to 9:00 p.m. On Sunday, vehicle washin!!: onlv will be from 3;00 p.m. to 9;00 p.m. Unless authorized by the Public Works Superintendent, there will be no shop use on holidays. D. A request to use the facilities, including an injury waiver, must be made in writing to the Public Works Superintendent or his designee before the facilities can be used. Request forms are by the time clock. E. After approval, the employee will record the information on the "After Hours Public Works Maintenance Log Sheet". This log sheet is posted 011 the Employee's Bulletin Board located in the lunchroom. F. No City owned materials can be used; such as oil, grease, nuts, bolts, etc. G. Employees are responsible for any damage to City owned equipment and/or facilities. H. All work done shall be completed within the time limits listed above. No vehicle requiring additional work shall be left on City premises overnight. 1. The employee is responsible for cleanup of the work area, return any tools or equipment 1 to its proper location before the required time lapses and make sure the City facility is locked before leaving the area. I - 1. Only personally owned vehicles of the employees or immediate family shall be repaired. " No work will be done for others! Immediate family shall include spouse and natural or legally adopted children. K. No work for hire will be done on City of Andover property. L. No personally owned vehicles {i.e. cars, trailers, boats, campers, etc.} shall be stored on the grounds or in the City garage area. M. Employees are not being permitted in the Public Works garage premises unless they have reserved time to use the City facilities or except during working hours. N. Supervisors must be informed of any accidents, emergencies or damage of equipment that occur when using the facilities. O. lfthe employee cannot compete the work during approved time, the employee must remove the vehicle from the area so others can use the space. Therefore, it is very important to schedule work that can be done within the two-hour time frame. P. Only qualified employees may operate special equipment, in shop, and only upon -- approval by the Vehicle Maintenance Department Supervisor and on the Time Reserve Sheet. Q. All employees must have an adult (18 years or older) with them when performing any work in the facilities for safety reasons. Children are not permitted in the shop for safety reason's. Building C is the only area to be used, all other parts of the facilities shall remain locked at all times. R. In case of an emergency, the mechanics office will remain unlocked for telephone use. "- 2 , Failure to Comply with City of Andover Facilities Use Policy will , Activate Disciplinary Action Against the User The City will discipline, suspend or dismiss any employee for just cause only. The following are deemed appropriate forms of discipline, however, the level and order of discipline shall be at the discretion of the City, based upon the nature of the infraction. 1. Written reprimand 2. . Three month suspension of keys and use of facilities 3. One year suspension of keys and use offacilities 4. Permanent suspension of keys and use offacilities These disciplinary actions are for failure to follow facility uses policy only, all other personnel violations are covered in the Andover Personnel Policy. - I 3 " .' CITY OF ANDOVER EMPLOYEE REQUEST FORM AND WAIVER FOR USE OF CITY F ACILITIES/EQUIPMENT Today's Date: Special Equipment to be Used User's Name: 1. Department: 2. Day Requested (MfTu/WIThIF/Sa/Su): 3. Date Requested (mm/dd/yy): 4. Time Requested to Start: Time Finished: . # of Tables: I # of Chairs: Date out: I Date Back in: Type of Work to be Performed: The only City owned items which may be borrowed for off-premise use are tables and chairs. These items may be borrowed for weekends or holidays, with written approval of the Public Works Superintendent. They will be returned to the location removed from by the start of the next business day. (Monday, if a weekend, next business day if a holiday.) No small tools or equipment shall be removed from the premises. No City materials, such as grease, oil, nuts, bolts, steel, etc., shall be used for any reason. All work must be completed within the specified - time and performed only in Building C. The user agrees to abide by the following conditions: 1. Use of the facility and/or equipment will be in conformance with the City's Public Works Maintenance Service Use Policy. 2. Only the facility and/or equipment listed above will be used. 3. Facility will be left and equipment returned in the same condition as when acquired, subject to reasonable wear and tear. User will be responsible for any facility or equipment damaged, stolen or lost while in the user's possession. Prior condition of equipment or facility may be described on the back of this form. It may then be initialed by user and Superintendent of Public Works or appropriate Public Works Supervisor. 4. User will be responsible for any damage to property or injuries to persons whether the property or person of the user or third party arising out of the user's use of the facility and/or equipment, and the user indemnify, hold harmless and defend the City from any claims, suits or cause of action arising out of any such damages or injuries. 5. Failure to comply with the conditions provided in this request will result in appropriate disciplinary action against the user. Request approved or denied Date Superintendent of Public Works Division (or Designee) , Vehicle Maintenance Dept. Supervisor (or Designee) RfrJwordlfonnslfacI.use.doc