11-29-2023 Council Packet - Laserfiche WebLink

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Maximum accumulation of PTO and ESST The maximum amount of PTO that may be carried over each year is 240 hours, unless approved the City Administrator. The City is fortunate to have a number of long-term employees who carry a balance of the maximum level of PTO hours allowed (240 hours/30 days) which is slightly lower than the average based on other municipalities. These employees must currently “use or lose” any annual PTO benefits by the end of each year. This typically results in several employees using multiple PTO days during the third quarter of each year simply to bring their PTO balance down before they lose it. This creates several weeks of very low staffing levels, and is especially problematic for the Public Works and Parks Departments. Staff is recommending an additional option for employees to convert an y remaining PTO hours into a sick bank. This sick bank can be used exclusively for sick leave during future years. One of the unintended consequences of transitioning from a traditional vacation and sick leave program to a PTO program is that employees tend to save their PTO for vacations and often come to work sick. Creating a separate sick bank with previously earned PTO may help to alleviate this trend. It is anticipated that only a handful of employees will utilize this option, as only 50% of the sick hours would be paid out when the employee terminates employment compared to 100% of PTO being paid out at retirement or termination. Another benefit of this option would be the ability to transfer the payout for any accumulated sick-leave balance into retirement accounts. Language was also added for maximum accumulation and carryover limit of ESST as required by state law. New state holiday added in 2023 (Section 15) The Minnesota Legislature adopted Juneteenth as an official state holiday in 2023, which means that cities must also recognize this holiday. Juneteenth is added to the observed holiday list. Severance Pay (Section 21) Added severance pay information for the new sick time, and language about no payout for ESST hours. Smoking Policy (Section 24) The City has prohibited smoking and tobacco use for many years in city buildings and vehicles, but now that cannabis is legal, language has been added to also prohibit use of that in any form. Other amendments include: • Section 10: Added the new Community Relations Manager Position to the list of exempt employees. • Section 14: Slight language changes to the paragraph on exempt employees additional PTO/ESST time that can be earned • Section 16: Added that sick or deferred sick leave can be used to extend parenting leave. Only the policy sections that are being amended are included in this staff report. New added language is blue and deleted language is red. RECOMMENDED ACTION Staff recommends Council approve the Personnel Policy amendments as presented.