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12-21-20-WS
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12-21-20-WS
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ARDEN HILLS CITY COUNCIL WORK SESSION – DECEMBER 21, 2020 12 <br /> <br />Public Works Director/City Engineer Blomstrom stated this could be done if all MSA <br />requirements were being met. <br /> <br />Councilmember Holden questioned how long it would take the City to complete this project with <br />Alternative 2. <br /> <br />Public Works Director/City Engineer Blomstrom estimated the project would take eight to <br />twelve weeks to complete. Staff will investigate creative solutions that may include break away <br />bollards, pavement markings and rumble strips in order to create a pedestrian solution without <br />adding significant costs to the project. <br /> <br />City Administrator Perrault requested Item G be discussed prior to Item F. <br /> <br />G. Accrual Payouts Upon Employee Separation <br /> <br />City Administrator Perrault stated the City’s current policy surrounding the payout of accrued <br />Paid Time Off (PTO), Flex Time, and Comp Time is that any accrued time shall be converted to <br />cash and paid directly into an employee’s Health Care Savings Plan (HCSP). These payouts are <br />capped at their respective maximums in the Personnel Policy at 240 hours for PTO, 40 hours for <br />Comp Time, and 80 hours for Flex Time. The HCSP is limited in scope and can only be used for <br />reimbursement of medical expenses following the separation from public service. As a result, an <br />employee leaving the City can only use their respective payouts from accrued balances for <br />medical related expenses. This does not give the employee much flexibility in-terms of access to <br />those dollars, and restricts access to funds if needed for other purposes. It is believed this policy <br />was originally implemented as a tool to save the City from paying employer taxes on high leave <br />balances. The Council may want to consider amending its policy and allow for either a direct <br />payment to employees of accrued balances and/or giving employees the option of a payout upon <br />separation into a deferred compensation account. This would result in employer taxes when an <br />employee separates, but the effect is not significant to the budget. While it varies from city to <br />city, the trend for cities is to offer some form of payout to the employee and not deposit funds into <br />an HCSP account. <br /> <br />City Administrator Perrault reported any changes to the current model need to be approved by <br />HCSP, but if Council is supportive staff will work on getting language to Council for approval at <br />their first meeting in January. Any contradicting language in the Union contract would supersede <br />an update to the Personnel Policy for Union employees, but changes to the contract could be <br />considered in 2021 as it is a negotiation year for the contract. <br /> <br />Councilmember Holden stated she served on the Personnel Committee when this was done. She <br />explained the committee was not thinking of just retired personnel when the health savings plan <br />was created. She indicated she supported the accrual payouts remaining as is. <br /> <br />Councilmember Holmes questioned if City employees have an HCSP and an HSA. <br /> <br />City Administrator Perrault reported this was the case. He commented further on the <br />differences between the accounts held by union and non-union employees. <br />
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