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Home My WebLink AboutAgenda Packets - 2011/03/07 CITY OF MOUNDS VIEW CITY COUNCIL WORK SESSION AGENDA MOUNDS VIEW CITY HALL Monday, March 7, 2011 7:00 p.m. ROLL CALL: Flaherty, Stigney, Hull, Mueller, Gunn PUBLIC COMMENT Citizens may speak to issues not on tonight’s agenda. Before speaking, please give your full name and address for the minutes. Also, please limit your comments to three minutes. Agenda Items Discussed by Consensus 1. Joint Meeting with the Economic Development Commission (EDC) 2. Update on SBM Fire Department Capital Needs and Engine Analysis 3. Council Discussion about Services Provided by the City 4. Review “Citizen of the Year” Nominations 5. Review Chapter 3 of the Personnel Manual Next Work Session: Monday, April 4, 2011, at 7pm Next City Council Meeting: Monday, March 14, 2011, at 7pm Item No: 2 Meeting Date: March 7, 2011 Type of Business: Work Session City of Mounds View Staff Report To: Honorable Mayor and City Council From: James Ericson, City Administrator Item Title/Subject: Update on SBM Fire Department Capital Needs and Engine Analysis Introduction: Fire Chief Nyle Zikmund will make a presentation to the City Council regarding the department’s future capital needs, beginning in 2012 with the planned replacement of two fire engines. Discussion: I met with Chief Zikmund on February 2, 2011, along with Blaine’s City Manager Clark Arneson and Spring Lake Park’s City Administrator Barb Nelson, to review the five year capital needs analysis. Chief Zikmund presented two versions of the five year plan, one showing the cost of replacing two engines at $660,000 each, and another plan with two “mini pumper” style engines at a much lower cost of $325,000 each. (Specifications for the Mini Pumper Extreme are attached to this report for the Council’s reference.) Other equipment and vehicle needs are addressed in the proposed 2012 capital budget. The City‘s share of the total proposed capital expenditures in 2012 will be approximately 15% of the total, which amounts to either $215,000 or $115,000. The Council could budget for its share of the Fire Department’s 2012 capital budget in the Vehicle and Equipment Replacement Fund or use a portion of any LGA received from the State of Minnesota. Recommendation: Review the two versions of the Fire Department’s Five Year Capital Budget as well as the specifications for the Mini Pumper Extreme. Should you have any questions for Chief Zikmund prior to the meeting, feel free to call him by phone at 763-786-4436. Respectfully submitted, ________________________ James Ericson City Administrator Item No: 2 Meeting Date: March 7, 2011 Type of Business: Work Session City of Mounds View Staff Report To: Honorable Mayor and City Council From: James Ericson, City Administrator Item Title/Subject: Update on SBM Fire Department Capital Needs and Engine Analysis Introduction: Fire Chief Nyle Zikmund will make a presentation to the City Council regarding the department’s future capital needs, beginning in 2012 with the planned replacement of two fire engines. Discussion: I met with Chief Zikmund on February 2, 2011, along with Blaine’s City Manager Clark Arneson and Spring Lake Park’s City Administrator Barb Nelson, to review the five year capital needs analysis. Chief Zikmund presented two versions of the five year plan, one showing the cost of replacing two engines at $660,000 each, and another plan with two “mini pumper” style engines at a much lower cost of $325,000 each. (Specifications for the Mini Pumper Extreme are attached to this report for the Council’s reference.) Other equipment and vehicle needs are addressed in the proposed 2012 capital budget. The City‘s share of the total proposed capital expenditures in 2012 will be approximately 15% of the total, which amounts to either $215,000 or $115,000. The Council could budget for its share of the Fire Department’s 2012 capital budget in the Vehicle and Equipment Replacement Fund or use a portion of any LGA received from the State of Minnesota. Recommendation: Review the two versions of the Fire Department’s Five Year Capital Budget as well as the specifications for the Mini Pumper Extreme. Should you have any questions for Chief Zikmund prior to the meeting, feel free to call him by phone at 763-786-4436. Respectfully submitted, ________________________ James Ericson City Administrator SBM Fire Department Memorandum From: Chief Zikmund To: Blaine City Manager Clark Arneson Mounds View City Administrator Jim Ericson Spring Lake Park City Administrator Barb Nelson Blaine Finance Director Joe Huss Mounds View Finance Director Mark Beer Re: Five Year Capital Budget Date: January 12, 2011 In the course of the next five years the department will continue to experience significant capital needs due to apparatus replacement and aging of the buildings. In order to best prepare policy makers to evaluate and plan we have developed a five year plan which allows a greater perspective. The plan does not include replacement of our aerial apparatus which, by 2016 will be 26 years old. Typical life on an engine is 20 years and 25 years for ladders. While we have had direct experience with our engines not lasting to the 20 year expectation, we do believe the aerials have more than 26 years. Additionally, the command staff is unanimous in their decision that we do not need two aerial devices. At an anticipated cost of $1.3 to $1.4 million this is significant. Furthermore, the 95’ E‐1 with the bucket is a very high quality truck with an all‐aluminum body and, a rebuilt engine (four years ago) and a recently re‐cabled ladder and refurbishment of the major hydraulics. Command Staff is also unanimous in their decision to refurbish rather than replace. Given the work done we may in fact have ten to twenty more years of life, especially if we travel the refurbish as needed path. In the next three years we have three engines to replace and our mobile air truck. The command staff met on January 10th to discuss and explore a transition of the fleet from the “ginormous” trucks we are currently using to a more compact efficient but nearly equally as effective “smaller” engine. The price difference is about half; $350,000 fully equipped versus $660,000 fully equipped. Total savings equals just over $1 million. The plan seeks $3.2 million over the next five years using the higher priced engines, that drops to $2.2 million or just short of 33%. In addition to the engines and mobile air unit is one more chief’s replacement vehicle, one time money for replacing radios, workout equipment at station three, and bunker gear; and ongoing money for station maintenance, RMS/Computer, and the Joint Training Facility. The $3.2 million proposal results in an average need of $643,000. If the decision to transition to smaller engines is implemented that number drops to $442,000. SBM FIRE DEPARTMENTProposed Capital Budget Expenditures, 2002 - 2012CATEGORY2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016APPARATUSENGINE 2 (2007)ENGINE 1 (2007ENGINE 4 (1992)660,000$ ENGINE 8 (1992)660,000$ 660,000$ LADDER 12 (1991)LADDER 17 (1992) Will not be replacedTANKER 3 (1991) Will not be replacedUTILITY 16 (1993)275,000$ UTILITY 14 (1992) Will not be replacedGRASS 7 (1969) Will not be replacedGRASS 13 (1995)PUBLIC ED VEHICLE 25,000$ MECHANIC (2008)CHIEFS CARS 35,000$ 33,000$ 35,000$ 38,000$ BOAT MOTORBUILDINGSSTA 3 CARPET50,000$ STA 1 & 2 AC 30,000$ STA 1 & 2 ROOF 40,000$ 80,000$ STATION MAINT 10,000$ 20,000$ 20,000$ 20,000$ 50,000$ 60,000$ 70,000$ 80,000$ EQUIPMENTRADIOS100,000$ RMS/COMPUTER 20,000$ 20,000$ 10,000$ 10,000$ 10,000$ 25,000$ 30,000$ 30,000$ 40,000$ 40,000$ 40,000$ JOINT TRAINING 25,000$ 25,000$ 5,000$ 5,000$ 10,000$ 10,000$ 10,000$ 10,000$ 10,000$ 10,000$ 10,000$ FITNESS EQUIPMENT45,000$ 50,000$ PAGERS15,000$ 15,000$ 15,000$ BUNKER GEAR18,000$ 90,000$ 90,000$ SCBA 80,000$ 190,000$ TOTALS 45,000$ 45,000$ 50,000$ 233,000$ 325,000$ 150,000$ 1,433,000$ 383,000$ 860,000$ 360,000$ 180,000$ Total 3,216,000$ Five Year Payment 643,200$ 3/2/2011 Page 1 SBM FIRE DEPARTMENTProposed Capital Budget Expenditures, 2002 - 2012CATEGORY2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016APPARATUSENGINE 2 (2007)ENGINE 1 (2007ENGINE 4 (1992)325,000$ ENGINE 8 (1992)325,000$ 325,000$ LADDER 12 (1991)LADDER 17 (1992) Will not be replacedTANKER 3 (1991) Will not be replacedUTILITY 16 (1993)275,000$ UTILITY 14 (1992) Will not be replacedGRASS 7 (1969) Will not be replacedGRASS 13 (1995)PUBLIC ED VEHICLE 25,000$ MECHANIC (2008)CHIEFS CARS 35,000$ 33,000$ 35,000$ 38,000$ BOAT MOTORBUILDINGSSTA 3 CARPET50,000$ STA 1 & 2 AC 30,000$ STA 1 & 2 ROOF 40,000$ 80,000$ STATION MAINT 10,000$ 20,000$ 20,000$ 20,000$ 50,000$ 60,000$ 70,000$ 80,000$ EQUIPMENTRADIOS100,000$ RMS/COMPUTER 20,000$ 20,000$ 10,000$ 10,000$ 10,000$ 25,000$ 30,000$ 30,000$ 40,000$ 40,000$ 40,000$ JOINT TRAINING 25,000$ 25,000$ 5,000$ 5,000$ 10,000$ 10,000$ 10,000$ 10,000$ 10,000$ 10,000$ 10,000$ FITNESS EQUIPMENT45,000$ 50,000$ PAGERS15,000$ 15,000$ 15,000$ BUNKER GEAR18,000$ 90,000$ 90,000$ SCBA 80,000$ 190,000$ TOTALS 45,000$ 45,000$ 50,000$ 233,000$ 325,000$ 150,000$ 763,000$ 383,000$ 525,000$ 360,000$ 180,000$ Total 2,211,000$ Five Year Payment 442,200$ 3/2/2011 Page 1 Item No: 3 Meeting Date: March 7, 2011 Type of Business: Work Session City of Mounds View Staff Report To: Honorable Mayor and City Council From: James Ericson, City Administrator Item Title/Subject: Council Discussion about Services Provided by the City Introduction: At the Council / Staff retreat held at Random Park on February 15, the City Council expressed a desire to review and examine the many services performed / provided by City departments as a first step toward delineation of those services considered to be essential, or “core” to the City’s mission and purpose. Discussion: The services, broken down by department, are listed in no particular order. For each service area identified, there are numerous administrative and support functions such as answering phones, communication or responding to residents’ questions which are not included in this initial comprehensive list of services. While the list is intended to be all encompassing, it may be the case that a service was inadvertently left off. If such is the case, the omission should not be considered indicative of its lack of importance. It should be noted that while all services are identified, not all services are supported by the General Fund. Many services (water, sanitary, cable related, to name a few) are outside of the general fund and thus somewhat immune from the consequences and impacts of budget cuts, reduced intergovernmental aid, levy limits or levy freezes, etc. Some other services, while within the general fund, may receive funding or reimbursement from outside sources or agencies, and these are also included undifferentiated from all other City services. Recommendation: Review the general overview and detailed services listed on the following pages and discuss what the next step(s) should be in terms of ascertaining the City’s core, essential services and their corresponding level of service, and how that may relate to budget management. Respectfully submitted, ________________________ James Ericson City Administrator General Service Area Overview by Department Police Department Street Patrol Animal Control Investigations Community Outreach Community Development Housing Inspections Planning Economic Development Building Permits Code Enforcement Finance Department Utility Billing Payroll Processing Accounts Payable and Receivable Budget and Financial Management Administration Elections Cable Business Licensing Human Resources Recycling Public Works Drinking Water Sanitary Sewer Stormwater Management Streets and ROW Engineering Fleet Management Parks and Facilities Forestry Services Provided or Performed by the City of Mounds View Police Department Provide traffic control and enforcement of all traffic laws Enforce all Criminal Laws and investigate crimes Arrest law violators and protect public Assist citizens with civil issue requests Organize and facilitate neighborhood watch groups Provide instruction of DARE program at Pinewood elementary school Monitor and ensure compliance of alcohol and tobacco sales by licensed businesses Disseminate crime alert information through web, e-mails and assorted electronic means Host and organize Predatory Offender community notification meetings Provide tours and public education efforts with civic and school groups Assist with school crossing and traffic flow concerns at local schools Provide officer at middle school to assist with education, security and various tasks Partner with multi unit dwellings to assist in crime free housing matters Assist with code enforcement and provide animal control Provide Housewatch/property checks Vehicle lockout service Offer crime prevention education Participate in National Night Out, Safety Camp and other outreach endeavors Provide instruction in youth gun safety course Community Development Department Rental Dwelling Inspections and Licensing Nuisance Code Enforcement Planning and Project Development Review Comprehensive Plan Oversight, Management and Revision Conduct Fire Code Inspections and Enforcement Fire Fighting and Emergency Response Coordination of Economic Development Activities Assist with Crime-free Multi Housing Programs Coordinate Licensing of Contractors, Verification of Licensure Develop Ordinances in Support of Programs and Policies Prepare Quarterly Newsletter Mounds View Matters and other Communication Pieces Review and Issue Building, Zoning, Plumbing, Sign, Fire and Mechanical Permits Perform HRA (Section 8) Rental Inspections Collect Fees for Permits, Plan Reviews, Applications and Licenses Zoning and Building Code Enforcement Services Provided or Performed by the City of Mounds View Community Development Department (Cont’d) Housing Code Enforcement Coordinate Communication Efforts via Web and Social Media Negotiate, Prepare and Implement Development Contracts and Agreements Review and Coordinate Tax Increment Financing Activity Develop and Maintain an “Available Properties” Database for Economic Development Purposes Coordinate Planning and Preparation of a Home and Garden Show Administration Department Broadcast City Meetings on Cable TV Channel 16 Coordinate Recycling program & SCORE Grant Funding Conduct all Business Licensing Manage and Coordinate Election Activities Oversee Records Retention Compliance Respond to Data Practices Requests Support Recreation Programming and Event Center Rental through YMCA Agreement Oversee and coordinate special events such as Town Hall Meeting Liaison to Festival in the Park Committee Human Resources Management Benefits Administration Publication of Legal Notices Perform Notary Public Duties Provide Receptionist duties—phone calls and front desk Prepare Informational Videos for replay online and on Channel 16 Training and Development of Employees Coordinate Spring and Fall Clean-Up Events Licensing of Dogs Liaison to the Charter Commission Finance Department Payroll Services Accounts Payable and Receivable, Preparation of monthly Invoices Preparation of Five Year Financial Plan Annual Budget Preparation Utility Billings and Receipt of Utility Payments Certification of Assessments Preparation of Comprehensive Annual Financial Report Coordination of Annual Municipal Audit Provide Debt Management Services Coordinate Existing and Future Information Technology and I-Net needs Maintain the City’s Primary and Subsidiary Financial Records Prepare and file Quarterly and Annual Tax Reports and other Forms Assist with Annual benefits Open Enrollment Process Investment and Cash Flow Services, Bank and Investment Reconciliations Provide Risk Management Services and Administration of City Insurance Policies Services Provided or Performed by the City of Mounds View Public Works Department Pump and Treat Groundwater and Distribution for Public Consumption / use Coordinate Access of Leased Tenants to Water Tower Maintain Water Distribution equipment and Infrastructure Collect and Transport Wastewater Maintain, Inspect, Repair and Improve Sanitary Infrastructure Provide Flood Control operations throughout City Collect and treat Stormwater Runoff Oversee MS4 Permit and Implement SWPPP Coordinate Stormwater Infiltration Program, Inspect and Maintain Features Manage Public and Private Utilities in Right-of-Ways Liaison to the Streets and Utility Improvement Committee Operate, Maintain, Inspect, Repair and Improve Roadway Pavements Snow and Ice Control and Removal from Roads, Sidewalks and Trailways Inspect, Maintain and Improve Sidewalk, Trailways and Parking Lots Oversee and Manage Street Signs, Pavement Marking, Street Lighting and Traffic Signals Maintain and Repair City Fleet of Vehicles and Equipment Replacement Manage and Maintain Parkland and Park Facilities Maintain, Repair and Improve City Hall, Community Center, Public Works Garage, Wells, etc. Provide and Perform Engineering Services, Prepare Plans and Specifications Coordinate and Maintain GIS Data Manage the Urban Forest via Contract City Forester Services Oversee Street and Utility Improvement Program Project Management and Contract Administration Liaison to Park, Recreation and Forestry Commission Item No: 4 Meeting Date: March 7, 2011 Type of Business: Work Session Administrator Review : ____ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Desaree Crane, Assistant City Administrator Item Title/Subject: Review Nomination(s) for the 2010 Citizen of the Year Award Background: The Mounds View Citizen of the Year Award recognizes ordinary citizens who have demonstrated initiative to improving the community. Past recipients of this award include: 2004: David Jahnke 2005: Frank Silvis 2006: Ed Lanz 2007: Don Hodges 2008: Barbara Haake 2009: Diane Wuori Discussion: The City of Mounds View Citizen of the Year Award recognizes a Mounds View resident who represents the energetic, courageous, persistent and informed involvement of an ordinary citizen in the issues and challenges that affect the City of Mounds View. The award seeks to honor highly effective community leaders who have invested a significant amount of time improving their community. The Mounds View Citizen of the Year Award is scheduled to be presented at the April 18th Town Hall Meeting. If the award recipient cannot attend the Town Hall Meeting, then the City Council may consider presenting this award at a regular meeting. Recommendation: The deadline for applications was Friday, March 4, 2011. Staff will provide the nominations to the City Council at the Work Session. Based upon the City Council’s direction, Staff will present a Resolution for adoption at either the March 14th or March 28th, City Council Meeting, and a plaque will be prepared for a formal presentation at the Town Hall Meeting. Respectfully submitted, __________________________ Desaree Crane Item No: 5 Meeting Date: March 7, 2011 Type of Business: Work Session City of Mounds View Staff Report To: Honorable Mayor and City Council From: James Ericson, City Administrator Item Title/Subject: Review Section 3 of the City’s Personnel Manual Introduction: At the December 13, 2010 City Council meeting, a suggestion was made to provide the Council with copies of personnel manual for review and discussion purposes, to ensure the policies continue to represent the goals of the City Council. Because the Personnel Manual is too large to effectively review and discuss in one meeting, Staff has been presenting the manual in logical sections. The first section, entitled “Workplace Issues”, was review at the January 3, 2011 Work Session. The second section, “Attendance and Leaves”, was reviewed at the February 7, 2011 Work Session. The third section of the Personnel Manual entitled “Compensation and Benefits” is now attached for the Council’s review. Discussion: The policies within Section 3 include the following: • Section 3.01: Compensation • Section 3.05: Flex Time Leave • Section 3.10: Holidays • Section 3.15: Insurance Benefits • Section 3.20: Miscellaneous Benefits • Section 3.25: Payroll, Overtime, Compensatory Time • Section 3.30: Retirement benefits • Section 3.35: Sick Leave • Section 3.40: Vacation • Section 3.45: Retirement Health Savings Plan • Section 3.47: Severance • Section 3.50: Uniform Allowance This section historically has generated significant discussion among Council Members, specifically in reference to Policy 3.01 (Compensation) and Policies 3.35 and 3.40 (Sick Leave and Vacation, respectively.) As the Council will recall, the policy on Compensation was most recently revised to exclude any reference to market rate adjustments or a specific benchmark for comparison purposes. While there may be a need at some point to conduct a market rate compensation study, the Council did not support an annual requirement to do so. The Council has also expressed some concern about large sick leave and vacation balances paid out for retiring or separating employees. It should be noted that previous labor agreements allowed for unlimited sick leave accruals which has led to several large severance payouts in recent years, but the number of employees that remain under the former policy permitting large sick leave balances and severance payments therefrom are now few. Compensation and Benefits Report March 7, 2011 Page 2 Related to the severance provisions, Staff is suggesting that a new policy be added to the Personnel Manual in this Section to clarify severance provisions. The Personnel Manual used to have such a policy, but was replaced with the Retirement Health Savings Plan language in Section 3.45. There could be instances that a non-union employee may fall outside the provisions of the RHSP provisions in 3.45, thus there should be additional language that serves to clarify how severance is to be paid, if not through the RHSP. The new language as proposed is reflected in Policy 3.47, which reads as follows: 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. (Flex time and 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. The non-union employees typically meet on an annual basis to evaluate and update the terms of the RHSP, which can be modified periodically based on the specific needs and situations of the staff members. With the promotion of Sergeant Menard to Deputy Chief, it is likely that revisions will be proposed. It should be noted that any sick-leave hours directed to an employee’s RHSP benefits the City in that hours are deposited at a 50% rate of conversion using present rates of pay versus the higher future rate of pay if paid out at separation. Furthermore, the City as well as the employee benefits from early conversion of the sick leave hours as the amounts are non-taxable, which represents a large cost-savings to the City’s future liabilities. The revision proposed above along with any changes recommended by non-union staff to the RHSP policy will be presented for Council consideration on March 28, 2011. Finally, the Council has expressed some interest in exploring the feasibility, pros and cons of transitioning to a Paid Time Off (PTO) system instead of the present and more traditional vacation and sick leave system. The League of Minnesota Cities indicates the following on their website regarding PTO programs: There is a wide variety of reasons why employees need to be away from work periodically. Traditional paid vacation, sick leave and funeral leave programs are highly structured with many rules applied to their use. Such rules do not always provide the best “fit” for the circumstances of individual employees. In addition, the more kinds of leave a city provides, the more tracking the city must do regarding leave accrual and use. Finally, employees who rarely have a need for sick leave may feel as though employees using their sick leave and vacation leave are receiving a greater benefit. Because of these issues, some cities choose to provide employees with one kind of paid leave to be used for any reason that an employee needs to be away from work. This kind of leave is often called “PTO” or “paid time off.” A city with PTO would typically not offer vacation, sick or funeral leave. As with the other forms of paid leave, the parameters surrounding a PTO benefit should be clearly defined in the city’s personnel policy. Compensation and Benefits Report March 7, 2011 Page 3 Replacing the traditional vacation and sick leave policies with PTO would require substantial work and would require negotiation with each of the bargaining groups. Gaining acceptance of the unions would likely require some level of concession on the part of the City, including, but not limited to, converting, buying back or cashing out some large balances. (Staff has requested sample policies from other communities that use PTO and requested feedback from the League of MN Cities as well.) The League identified many questions that need to be asked when considering such a policy, which are reprinted herein for the Council’s consideration: • Which employees qualify to earn PTO? • What leaves does PTO replace? • How is PTO accrued? • Is there any period of time during which an employee cannot use PTO? • What is the maximum number of PTO hours that can be accrued? • What happens if an employee reaches maximum accrual? • When can PTO be used? • For what reasons can PTO be used - for employee, for family, for fun, etc.? • How do employees request to use PTO? • Who has the authority to approve and/or question the use of PTO? • Are there any circumstances that the city would require an employee to use PTO? • What about unplanned use of PTO versus planned uses? • When might a medical certification or fitness for duty statement be required? • Is PTO “use it or lose it” or is it paid out when an employee leaves? • Can employees with high balances cash out some of their PTO hours? • Can employees with high balances donate PTO hours to those with medical emergencies? • Are there any rewards for not using PTO during the year? • Will PTO hours count as “hours worked” for purposes of calculating overtime under the federal Fair Labor Standards Act? As you can see, the issues and considerations are numerous. For your reference and review, staff has attached a copy of Bemidji’s PTO policy as well as the League’s model policy for PTO, which they refer to as “Annual Leave”. Recommendation: Review attached Section Three of the Personnel Manual relating to “Compensation and Benefits” and the proposed addition of Section 3.47 regarding Severance. Respectfully submitted, ________________________ James Ericson City Administrator League of Minnesota Cities Paid Time Off (PTO) Model Policy Annual Leave Annual Leave replaces individual sick leave, vacation leave, and funeral leave plans and combines them into a single benefit program. Annual Leave does not replace City observed holidays, jury duty, military leave, or court leave. Employees accrue annual leave based on length of service with the City. Plan provisions discourage unnecessary utilization by providing cash and savings incentives. Annual leave can be used for any reason, subject to existing request and approval procedures. As with all paid time off programs, the City needs to ensure that service to the public and work requirements are not adversely impacted. Accrual Rates for Annual Leave Years of Service Annual Accrual Rates ? Years ? days ? Years ? days ? Years ? days ? Years ? days Annual leave will not accrue during unpaid leaves. Regular part-time employees will accrue annual leave on a prorated basis based on regular hours worked. Annual leave will accrue on a pay-period basis up to a maximum of 1 ½ times the employee’s maximum annual accrual rate as noted above. Employees can carry over any annual leave that does not exceed the stated cap. No additional accrual will occur above the cap. Current Sick Leave Balances: Deferred Sick Leave Employees hired prior to January 1, 2011, who have accrued sick leave will retain their current sick leave balance to be used as “deferred sick leave” until the balance is exhausted. Deferred sick leave can be used for any doctor certified extended leave that would have been covered under the previous sick leave policy. An extended leave for purposes of this policy is defined as one requiring an employee to be out of work for more than three (3) consecutive days. If an employee knows he/she will be out for more than three (3) consecutive days before the absence, he/she will be eligible to use the deferred sick leave bank from the first day. For example, if an employee has a scheduled surgery where he/she knows—in advance— he/she will be out for two (2) weeks, the employee will be able to use hours from the deferred sick leave bank starting on the first day of the absence. If an employee is out and expects to return within three (3) days, he/she will use annual leave. If the medical condition extends beyond the three (3) days, the deferred sick leave bank will be applied retroactively and any annual leave used will be restored to the employee’s annual leave balance. Once the deferred sick leave bank is exhausted, employees will use annual leave for all absences covered by the annual leave program. Any deferred sick leave balance remaining when an employee leaves City service will expire. The City does not pay out any hours that may remain in the deferred sick leave bank at termination. Current Vacation Balances Unused vacation balances shall be converted to annual leave on an hour for hour basis. Severance Pay Employees leaving the City in good standing will receive 100% of their annual leave balance as compensation (applicable taxes will be withheld). Employees have the option of directing those dollars into a 457 deferred compensation plan (subject to IRS maximum deferral regulations and Minnesota law). Annual Leave Conversion Annual leave will be eligible for conversion to cash or to a 457 deferred compensation plan on an hour-for-hour basis (subject to IRS maximum deferral regulations and Minnesota law) annually with the following conditions. Up to 40% of the annual leave balance, not to exceed eighty (80) hours, may be converted each year provided the employee has used at least 30% of his/her annual accrual during the current calendar year and has a balance of at least 176 hours. The minimum balance requirement will be determined as of the first payroll in December. Payment will be based on the employee’s current hourly rate on December 1. Conversion to cash or deferred compensation will occur in the second payroll of the following year with specific dates to be determined by accounting each year. Accounting will notify all employees in November of each year as to the dates and conversion options. The conversion will be part of regular payroll and will not be paid in a separate check. Regular rate for the purpose of this policy is the employee’s straight time rate not including overtime, pay differentials, out-of-class adjustments or any other additions to regular pay. Section Three: Compensation and Benefits POLICY: COMPENSATION SECTION: 3.01 This Section of the Personnel Manual establishes policies governing compensation. The objectives of this Section are as follows: 1. To develop and maintain a comprehensive policy which will attract and retain competent personnel. 2. To provide an environment in which employees will be encouraged to develop their abilities and effectiveness in performing their assigned duties. 3. To recognize the quality of job performance demonstrated by each employee. There are three Phases of the Compensation Policy: Phase I. Five-Step Compensation Plan Phase II. Annual Compensation Adjustment; and Phase III. Pay Equity Compliance PHASE I. FIVE-STEP COMPENSATION PLAN The City uses a five step compensation plan for regular, full-time and part-time employees not represented by a collective bargaining unit. The five step plan is the first phase of the overall compensation policy and shall consist of five increments with the highest step, Step 5, representing 100% of the position’s maximum compensation rate. The steps shall descend from Step 5 (100%) in increments of 5%, as shown below. STEP 1 STEP 1.5 STEP 2 STEP 3 STEP 4 STEP 5 80% 82.5% 85% 90% 95% 100% Progress through the Steps Generally, new employees will begin at Step 1 of the five step plan. (The City Council may however authorize a new employee to start at a step other than Step 1 in consideration of experience and qualifications.) Employees hired to start at Step 1 will be eligible for a half- step increase at six months of service equivalent to 82.5% of the Step 5 wage. Advancement to subsequent steps would occur on the employee’s anniversary date until the employee reaches Step 5. Advancement to a subsequent step necessitates (1) a performance evaluation rated satisfactory or better by the employee's supervisor, (2) approval by the Department Head and City Administrator, and (3) approval by the City Council. The progression from Step 1 to Step 5 represents a span of four years. PHASE II. ANNUAL COMPENSATION ADJUSTMENT The Annual Compensation Adjustment (ACA) is the Council-approved adjustment often referred to as a Cost of Living Adjustment (COLA). Implementation When deemed appropriate by the City Council, the wages for each regular full-time and part- time employee not represented by a collective bargaining may be adjusted, effective January 1 of each year. The percentage increase approved by the City Council represents the second phase in the overall compensation policy. Adjustment Criteria The ACA shall be granted only when earned based on demonstrated on-the-job performance, supported by the recommendation of the employee’s immediate supervisor and preceded by a year-end performance evaluation rated satisfactory or above. All recommendations will be reviewed by the City Administrator who will recommend approval or denial of the ACA to the City Council for final approval. If a performance evaluation is rated less than satisfactory or it is determined that the employee has areas of job performance in need of improvement, the employee may receive less than the full ACA percentage increase. PHASE III. PAY EQUITY COMPLIANCE The State of Minnesota's Pay Equity Law requires that "every political subdivision of this state shall establish equitable compensation relationships between female-dominated, male- dominated, and balanced classes of employees in order to eliminate sex-based wage disparities in public employment in this state." (Minn. Stat. § 471.992, subd. 1) The term “equitable compensation relationship” means that the compensation for female- dominated classes is not consistently below the compensation for male-dominated classes of comparable work value . . .” (Minn. Stat. §. 471.991, subd. 5). A. In order to meet the requirements of the Pay Equity Law, the City Administrator shall annually conduct an analysis of compensation using the job evaluation study method determined by the City Council. B A Pay Equity Adjustment may be necessary if the annual Pay Equity analysis indicates a pattern of compensation for female and male-dominated classes which is inconsistent with the requirements of State Law and the Pay Equity Regulations as set forth by the Department of Employee Relations. C. The Pay Equity Analysis and any subsequent compensation adjustment represents the final Step in the overall compensation process. POLICY: FLEX TIME LEAVE SECTION: 3.05 The Flex Time Policy is an attempt to establish a consistent method of tracking regularly scheduled work hours and additional non-regularly scheduled work hours which applied to exempt status employees. Flex time may be earned and accrued, one hour for each extra hour worked over a 40 hour work week. Flex time should be used within a reasonable period from when it was earned; preferably during the same week. Flex time can be used in increments of a maximum of 16 hours in a two-week pay period. Use of Flex time must be approved by the employee’s Supervisor prior to its use. Recording of Flex time should be accurately maintained be each employee. Accrued flex time balances will be reduced to forty hours on December 31 of each calendar year. Upon an employee’s termination from the City, there will be no pay-out of Flex Time accruals, either partial or total. POLICY: HOLIDAYS SECTION: 3.10 All regular full-time, part-time employees averaging 20 or more hours per week and probationary employees receive the following holidays: 1. New Year’s Day 2. Martin Luther King’s Birthday (3rd Monday in January) 3. President’s Day 4. Memorial Day 5. Independence Day 6. Labor Day 7. Veterans’ Day 8. Thanksgiving Day 9. Day after Thanksgiving 10. Christmas Eve Day 11. Christmas Day 12. New Year’s Eve Day. If Independence Day or Veteran's Day falls on a Saturday, the preceding Friday will be considered a holiday. If Independence Day, Veteran’s Day, Christmas Day or New Year's Day fall on a Sunday, the following Monday will be considered a holiday. Floating Holidays In years during which Christmas Eve, Christmas Day, New Year’s Eve and New Year’s Day fall on a Saturday, when Christmas Eve and New Year’s Eve fall on a Sunday, employees shall be credited with two (2) floating holidays to be used within 365 days AFTER said holidays occur. Unused floating holidays shall not be included in any severance computation. Working on a Holiday In the case where a non-exempt employee works on a designated legal holiday, which has been approved by their respective Department Head, the employee shall receive eight hours straight time or eight hours compensatory time off as compensation for the holiday and shall receive one and one half (1 ½ ) time the employee’s normal straight pay for hours worked, unless they are receiving call out pay. Exempt employees, who have received prior approval, who work on one of the holidays listed above shall receive eight hours straight time pay for the holiday and shall receive the employee’s normal straight time pay for those hours worked. Absences and Holiday Pay Holidays which occur during vacation leave or sick leave shall not be charged against said vacation or sick leave but shall be charged against holiday pay. Wages shall not be paid for a holiday to an employee who is on leave of absence without pay the day before the holiday. Temporary and seasonal employees do not receive holiday pay. POLICY: INSURANCE BENEFITS SECTION: 3.15 The outline of the following benefits should not be construed as a claim of entitlement. These benefits may be changed from time to time. The City may change, delete, modify or otherwise revise employee benefits, coverage, premium amounts, eligibility requirements, and/or administrative procedures regarding benefits at any time. Provisions describing various plans and insurance policies are for information only. In all instances the actual plan or policy language and statutory requirements are controlling. A. HEALTH, DENTAL AND LIFE INSURANCE The City currently contributes an amount specified by the City Council for employee insurance, which can be used towards the cost of: • $10,000 basic life insurance, • employee, spouse and dependent health and dental insurance and, • supplemental life insurance of up to three times an employee’s annual base salary. Life Insurance All regular full-time and regular part-time employees averaging 20 hours or more of work each week, including new probationary employees, are provided $10,000 of basic Life Insurance. (Supplemental Life Insurance up to $300,000.) Health and Dental Insurance All regular full-time and regular part-time employees averaging 20 hours or more of work each week, including new probationary employees, and their dependents are eligible for group health and dental insurance benefits. The City pays a portion of the total cost for health and dental benefits offered through the City. The City Council determines, by resolution, the City’s monthly contribution toward the premiums for employees and their dependents. Employees pay any remaining premium charges through payroll deductions Information pertaining to medical coverage and brochures explaining each of the plans is available from the Finance Department. B. ENROLLMENT All new probationary employees are eligible to enroll in the group insurance program with the City, however, coverage enrollment dates are subject to the terms and conditions of the City’s contracts with its insurance carriers. Dental and life insurance coverage will not commence until the initial 30 days of service is completed. Health insurance coverage enrollment varies depending on the starting date. C. COVERAGE DURING APPROVED LEAVE OF ABSENCE WITHOUT PAY An employee can elect to continue life, health and dental coverage while on leave of absence without pay. However, during this period, the employee shall be responsible for all premiums due. D. WORKER’S COMPENSATION MANAGED CARE SERVICES The City is enrolled in a worker’s compensation certified management care plan. Managed care allows employers to better coordinate medical care for injured employees and control worker’s compensation costs. Under managed care, a trained case worker actively manages the employee’s workers’ compensation claim. The case worker assists the employee in getting proper medical treatment and ultimately returning to work. Specific information pertaining to procedures are available from the Payroll office. POLICY: MISCELLANEOUS BENEFITS SECTION: 3.20 A. FLEXIBLE SPENDING ACCOUNT The City of Mounds View offers to its employees Flexible Spending Accounts pursuant to Internal Revenue Code Section 125. The flexible spending account applies to costs related to medical care deductible, health insurance co-payments, any uncovered medical and dental expenses and child care expenses. Pre-tax dollars may be used for these expenses. Participants must be regular full or part time employees. The maximum annual reimbursable expenses under the health plan are $2,000 and $5,000 for child care. Specific information pertaining to reimbursable expenses is available from the Finance Department. B. PAYROLL OPTIONS The City offers direct deposit of payroll checks for all employees. Your pay check can be automatically deposited in your account by completing a brief form and submitting a void check from your checking or savings account. C. CREDIT UNION For information regarding the credit union and its service, please contact the City and County Employees Credit Union. D. HEALTH CLUB MEMBERSHIP Employees are reimbursed for a health club membership in exchange for accrued Sick Leave. An hour of Sick Leave is valued at the employee’s current rate of pay. Employees can participate if a minimum balance of 80 hours sick leave is maintained. The maximum monthly contribution amount is $55 per month. Balance and contribution amounts are pro-rated for part-time employees. POLICY: PAYROLL, OVERTIME, COMPENSATORY TIME SECTION: 3.25 A. PAYROLL Employees will be paid every two weeks (26 times per year). Wages are paid for the two-week period commencing at 12:01 a.m. on a Saturday and ending at 11:59 p.m. on a Friday, fourteen days later. When paydays fall on a holiday, checks are issued the day preceding the holiday. The City is required by law to make deductions from an employee’s check including Social Security, PERA (Public Employees Retirement Association), Federal Income Tax and State Income Tax. B. EMPLOYEE TIME SHEETS Time sheets must be submitted to the Finance Department for payroll processing completely filled out and properly signed by the employee and the appropriate Department Head. The calculations of vacation, sick leave and compensatory time should be reviewed and the sheets should bear all appropriate signatures. Department Heads are responsible for verifying that the time sheets are properly completed before they are submitted to the Finance Department. C. OVERTIME PAY Employees will be paid overtime compensation for all hours worked in excess of 40 hours per workweek. Overtime pay is computed on time worked in excess of forty hours (during a seven- day work week) at a rate of one and one-half times the hourly rate of pay. Paid holidays, vacation leave and sick hours are not counted as time worked for the purposes of computing overtime hours. Overtime pay or compensatory time will not be paid for time not worked. Employees defined as “exempt” by the Fair Labor Standards Act are not entitled to overtime pay. D. COMPENSATORY TIME Compensatory time-off in lieu of cash payment is allowed only in accordance with the Fair Labor Standards Act for all permanent non-exempt employees. Compensatory time is compensated at a rate of one and one-half times the hours worked in excess of the established work-week. An employee may not use any more than 80 hours of compensatory time per year. The maximum total accrued compensatory time balance shall not exceed 50 hours per employee. The respective Department Head or the City Administrator must give prior approval for any accumulation of compensatory time by an employee. The respective Department Head or the City Administrator must give prior approval for any use of compensatory time by an employee. If an employee is terminated from employment they will be compensated for accumulated compensatory time earned up to the above stated maximum. Any accumulated compensatory time not used by the end of the last pay period in November shall be cashed out. E. CALL BACK PAY A non-exempt employee called back to work at a time other than a normal scheduled shift for reasons other than training shall receive a minimum of two hours pay at one and one-half times the employee’s regular straight-time hourly rate. Reporting early for a shift or extension of a shift does not qualify for a call-back premium. Information pertaining to Overtime pay, Compensatory time, Court Duty, or Call-Back pay may vary for unionized personnel. Specific information pertaining to these procedures is provided in the respective contracts. POLICY: RETIREMENT BENEFITS SECTION: 3.30 A. PERA PERA (Public Employees Retirement Association) is available to elected and non- elected public employees who meet eligibility requirements. If the employee meets income and position requirements set by state statute, he or she automatically becomes a member when employment commences. Membership is optional for qualified elected employees or those appointed to an elected office. Any employee hired after January 1, 1968 is a member of the coordinated PERA-FICA program. To participate in this program, each employee has a deduction from his or her paycheck and the City then pays a portion of the employee’s salary as a “match” (match percentage varies for Patrol Officers). B. EARLY RETIREMENT If an employee retires before age 65, he or she may be eligible for a reduced benefit provided they are at least age 55 and have three or more years of service. If the employee has 30 or more years of service and retires before the age 65, he or she may be eligible for a reduced benefit at any age, provided the employee was first hired prior to July 1, 1989. C. DEFERRED COMPENSATION Deferred compensation is an IRS approved method for deferring federal and state income taxes on savings until retirement. Taxes are paid on the savings and earnings when withdrawn, usually during retirement when the employee is presumably in a lower tax bracket. Two plans are currently available including ICMA Retirement Corporation (RC), and Minnesota State Deferred Compensation Plan. You may defer a maximum of 100% of your total salary or a maximum amount as set by Federal regulations, whichever is less, with a minimum of $10.00 per payroll period. Specific information pertaining to either plan is available from the Finance Department. POLICY: SICK LEAVE SECTION: 3.35 Regular full-time and part-time employees averaging more 20 hours or more per week are eligible to receive sick leave with pay after completion of their initial six-month probationary period. Although new probationary employees are not entitled to use paid sick leave, sick leave hours begin accruing on the first day of employment. Promotional probationary employees may make use of sick leave. However, if the sick leave exceeds a total of five working days, the probationary period shall automatically be extended for an equivalent period of time. A. ACCRUAL Sick leave accrues at the rate of 8 hours per month unless otherwise established by a collective bargaining agreement. Regular part-time employees eligible for paid leave earn it on a pro-rated basis. Sick leave may be accumulated to a maximum of 120 days. B. BANKED SICK LEAVE Employees who have accumulated the maximum 120 days sick leave shall be permitted to accrue an additional "bank" of sick leave at the rate of one day per month. Additional Banked Sick Leave will not be counted in the calculation of severance benefits, except as noted in Section 3.45. C. USE Sick leave should not be considered a privilege or vested right that may be used at an employee’s discretion but shall be considered as a type of insurance used for the case of an illness, disability of the employee, or to receive dental or medical care when approved by the employee’s Supervisor. Sick leave may also be used by an employee to care for an employee’s spouse, child, sister, brother, mother, father, mother-in-law, or father-in-law who has a serious health condition (as definition section). Sick leave may be used by an employee to attend the funeral of the employee’s family member (See Section 2.10 regarding Funeral Leave). In order to be eligible for sick leave with pay an employee must: • Report promptly to the employee’s Department Head or Supervisor the reason for absence and keep the Department Head or Supervisor informed of the employee’s condition if the absence continues for more than three (3) days. • Keep the Department Head informed on a weekly basis of the condition. If the absence is more than three (3) days a doctor’s note may be required. • If deemed necessary by the City Administrator, a doctor’s statement may be required for sick leave absences of less than three (3) days. Claiming sick leave when physically fit, except as permitted in this section, may be cause for disciplinary action, including transfer, suspension, demotion or dismissal. Employees are not permitted to use sick leave in the same manner as vacation time off on dates immediately preceding an employee’s termination or retirement date, except in the case of disability. All regular full-time and part-time employees averaging 20 hours or more per week are eligible to receive vacation with pay after completion of their initial six-month probationary period. Vacation hours will begin accruing on the first day of employment. However, new probationary employees are not entitled to use accrued vacation until completion of their six month probationary period. Regular part-time employees eligible for paid vacation will receive it on a pro-rated basis. ACCRUAL SCHEDULE Years of Service Days per Year 6 months - 1 year 10 days 1 through 5 years 10 days After 5 years through 10 years 15 days After 11 years 16 days After 12 years 17 days After 13 years 18 days After 14 years 19 days After 15 years 20 days After 20 years 25 days POLICY: VACATION SECTION: 3.40 Each department shall establish a vacation schedule to ensure the needs of the department will be met while allowing employees to use accrued vacation time. Requests for time off shall be made in advance, with the length of the notice to be determined by the Department Head. All vacation time must be approved by the employee’s Supervisor or Department Head. The City encourages employees to use their full amount of vacation each year. If this is not possible, an employee is permitted to carry over no more than ten days vacation time plus the amount accrued up to December 31 of the present year. In most circumstances, if an employee is entitled to more than one week of vacation, it is recommended that the employee combine vacation weeks consecutively. The rate of vacation pay is the employee’s normal base straight-time rate of pay. The City of Mounds View offers its employees a Retirement Health Savings Plan (RHSP) pursuant to Internal Revenue Code regulations through a third party administrator selected by the City. The following contributions will be allowed to the Retirement Health Savings Pan: A. Upon separation from the City, employees who have completed two or more years of service and leave the City in good standing shall contribute 100% of their eligible sick leave to their RHSP. Except as noted below, eligible sick leave is limited to 50% of an employee’s sick leave balance, which is capped as follows: Base cap = 960 hours. The base cap shall be increased by 20 hours per year for each year employed beyond ten years. For example, a 15-year employee’s cap would be 1060 hours and a twenty-year employee’s cap would be 1160 hours. Employees with less than two full years of service with the City are not eligible to contribute sick leave hours to the RHSP and have no right to any payout of unused sick leave hours. Employees who had completed ten years of service by January 1, 2008, qualify for enhanced sick leave payout. Upon separation, qualifying employees shall contribute 100% of their eligible sick leave to their RHSP. The enhanced sick leave payout is equal to 65% of an employee’s sick leave balance. (The enhanced conversion rate applies ONLY to sick leave hours contributed at separation, subject to the maximum cap addressed above.) Sick leave balances in excess of the above described cap are not eligible for contribution or payout in any form, except as follows: Employees having accrued a balance of 1,400 or more sick leave hours as of September 1, 2008 shall be eligible for the enhanced payout up to a maximum contribution equivalent to the highest sick leave balance carried during 2008. POLICY: RETIREMENT HEALTH SAVINGS PLAN SECTION: 3.45 B. Employees who have a sick leave balance of 480 or more hours shall contribute their excess balance to the RHSP at a 2 to 1 ratio with a maximum annual contribution of 160 hours (80 hours converted) or that amount which brings the employee’s sick leave balance down to 480 hours—whichever is less. The City shall calculate and process the annual employee contribution to the RHSP on the first payroll period of November of each year. C. Non-exempt employees shall contribute three percent of their salary per payroll period towards the RHSP. In addition, upon separation from the City, non-exempt employees who have completed two or more years of service and leave in good standing shall contribute 100% of accrued vacation compensation to the RHSP. D. POST Certified Employees shall contribute five percent (5%) of their salary per payroll period toward the RHSP. In addition, upon separation from the City, POST Certified Employees who have completed two or more years of service and leave in good standing shall contribute 100% of accrued vacation compensation to the RHSP. E. Employees who are Certified Municipal Clerks or employees who have not completed two years of service shall not contribute any salary or vacation compensation to the RHSP. F. All other non-union employees who have completed two or more years of service and leave in good standing shall contribute 50% of accrued vacation compensation to the RHSP. 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. POLICY: UNIFORM ALLOWANCES SECTION: 3.50 The non-union Mounds View Public Works employees are authorized the same uniform allowance reimbursement as the Public Works Union employees as outlined in the Public Works Union Contract. The non-union Mounds View Police Department employees are authorized the same uniform allowance reimbursement benefits as the Police L.E.L.S Union employees as outlined in the L.E.L.S. Police Sergeants union contract. POLICY: SEVERANCE SECTION: 3.47