Agenda Packets - 2011/03/28 - Laserfiche WebLink

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Item No: 7G Meeting Date: March 28, 2011 Type of Business: Council Business City of Mounds View Staff Report To: Honorable Mayor and City Council From: James Ericson, City Administrator Item Title/Subject: Consideration of Resolution 7759, a Resolution Authorizing Revisions to the Personnel Manual in Section 3.01 (Compensation Policy) and Section 3.45 (Retirement Health Savings Plan) and the Addition of a New Section 3.47 (Severance) to Address Severance Benefits Not Covered in Section 3.45. Introduction: The City Council directed staff to review the City’s Personnel Manual and to bring forth updates and revisions as may be necessary to ensure the policies are appropriate, consistent with applicable laws and representative of the Council’s own goals and policies. Discussion: The City Council reviewed Section Three of the Personnel Manual at its work session on March 7, 2011. One change was noted relating to the reintroduction of language pertaining to “Severance” which had been eliminated shortly after the Retirement Health Savings Plan (RHSP) language was added. As noted at the March work session, the RHSP does not address all types of potential severance pay outs, thus language relating to severance should be present in the Manual. The new language proposed at the work session remains recommended, as follows: Section 3.47 Subject to the provisions of Section 3.45, employees who sever employment with the City shall be compensated for any remaining accrued Vacation hours and Compensatory Time hours not already directed into an RHSP. (Unused Floating Holidays are not eligible for Severance payout.) Employees with less than two full years of service are not eligible for payout of Sick Leave hours. Employees with two or more years of service are subject to the terms and provisions addressed in Section 3.45 regarding Sick Leave balances upon separation. In addition, it was noted at the work session that the non-union personnel had scheduled a meeting to determine whether any changes were needed relating to the Retirement Health Savings Plan program. The City adopted this retirement savings vehicle as an employee benefit option about 7 years ago to take advantage of tax savings for both the City and the employee. Participation can be structured based on a specific employment group and employees may opt to put a percentage of their salary toward the RHSP or a percentage of their severance to the RHSP.