Item 3.16 Approving a Revised Volunteer and Employee Recognition Policy
Request for
City Council Action
DEPARTMENT INFORMATION
ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE:
Administration Assistant City Administrator/Human Resources Hille June 10, 2024
PRESENTER(s) REVIEWED BY: ITEM #:
Consent City Administrator/Finance Director Flaherty 3.16 - Employee and Volunteer
Recognition Policy
STRATEGIC VISION
MEETS: THE CITY OF OTSEGO:
X Is a strong organization that is committed to leading the community through innovative communication.
Has proactively expanded infrastructure to responsibly provide core services.
Is committed to delivery of quality emergency service responsive to community needs and expectations in a
cost-effective manner.
X Is a social community with diverse housing, service options, and employment opportunities.
Is a distinctive, connected community known for its beauty and natural surroundings.
AGENDA ITEM DETAILS
RECOMMENDATION:
City staff is recommending that the City Council adopt a resolution approving revisions to the Employee and Volunteer
Recognition Policy.
ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED?
No No
BACKGROUND/JUSTIFICATION:
The City Council previously adopted an Employee and Volunteer Recognition Policy for the purpose of expressing
appreciation and acknowledgement of contributions and accomplishments made by volunteers and employees.
Modifications to the existing policy are being recommended for:
• Annual Commission Recognition
Proposed changes to the policy outline a set budget amount of $25.00 per commissioner for an annual event to
recognize Commissioners for their service and contributions to the City.
• Employee Service Recognition
During the 2023 Classification and Compensation Study, there was information gathered on retention tools in
place for other cities. Based on that data and additional research into such tools, a policy was proposed to
implement a years of service recognition to increase morale, encourage retention, and to recognize years of
service. The proposed policy revision will provide $100 per year of service, with eligibility beginning after five
years of service, and will be paid annually. This benefit would be subject to applicable payroll taxes and
deductions.
The Administrative Subcommittee was presented with this information at multiple meetings and provided direction for
City Council consideration of approval. The draft policy revisions were reviewed and discussed with the City Council at
their special meeting on May 13, 2024, and directed staff to prepare materials for approval.
SUPPORTING DOCUMENTS ATTACHED:
• Employee and Volunteer Recognition Policy (Proposed)
• Resolution 2024-43
POSSIBLE MOTION
PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THE MINUTES:
Motion to adopt Resolution 2024-43 approving a revised Employee and Volunteer Recognition Policy.
BUDGET INFORMATION
FUNDING: BUDGETED:
Fund 101 – General
Fund 601 – Water Utility
Fund 602 – Sanitary Sewer Utility
Yes
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Employee and Volunteer Recognition Program Policy
Adopted: TBD
Introduction:
The Otsego City Council values its volunteers and employees; therefore, the Otsego City Council has
adopted an Employee and Volunteer Recognition Program by resolution for the purpose of expressing
appreciation and acknowledgement of contributions and accomplishments made by volunteers and
employees. The effort and talents of the volunteers and employees advance the goals and objectives of
the City. This policy recognizes their contributions and aids in attracting and retaining volunteers and
employees.
Annual Commission Recognition:
Each year the City will host an Annual Commission Recognition event to recognize all Commissioners for
their service to the City. Commissioners, elected officials, and the staff members that interact with the
Commissioners on a regular basis will be invited to attend the event. The City Council has authorized a
budget of $25 for each Commission member for each respective year. This event would provide food
and non-alcoholic beverages for those invited to attend the event. The event would be after normal
working hours and would be strictly voluntary. It would not be considered time worked.
Commission members might be honored to recognize exceptional years of service, and items might
include a plaque, certificates of appreciation, Otsego branded apparel, and memorabilia.
Employee Recognition:
To recognize employees for their dedication and service to the City, the City Council has authorized a
budget of $25 for each full-time, part-time, and seasonal employee included within the budget for each
respective year. The expenditure is intended to recognize employee dedication to the City, to foster
employee morale, encourage and recognize employee achievements, and to recognize the ongoing
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contribution of the employees to the City and its residents. The funds may be spent on no more than
two events per year and in no case shall exceed the budgeted amount.
Examples of recognition activities/events include: a picnic, after work gathering or other event as
authorized by the City. Funds shall not be used for alcoholic beverages and the City of Otsego will not
assume any liability for consumption of alcoholic beverages at any recognition event/activity. Unless
approved by the City Council, these events should be scheduled outside of the employees’ regular work
hours to ensure continuation of departmental services provided to the community.
Employee Service Recognition:
Purpose
This policy is intended to set forth the objectives of the City of Otsego’s Employee Service Recognition
program and to provide for the expenditure of public funds as necessary to achieve objectives in a
manner consistent with state law. (Minn. Stat. Sec. 15-46)
The objectives of this program are to:
1. Increase morale and employee motivation.
2. To encourage loyalty and long-term retention of employees.
3. To celebrate the accomplishments and service of retiring employees; to demonstrate the
appreciation of the City Council, employees and citizens of the City of Otsego for the public
service provided by all City of Otsego employees.
Employees eligible for recognition under this policy are regular full and part-time city employees.
Seasonal employees are not eligible.
Longevity Pay:
Purpose
To reward non-union employees for continuing employment with the City, increasing their
knowledge and applying it to their jobs, and to maintain high employee retention and
competitive pay for the City’s employees.
• Pay and Terms: So long as budgetarily feasible, employees will be paid $100 for each full year of
service completed with the City, on an annual basis. An employee must have completed at least
five full years of service to be eligible for payment. Payment would be made on the first payroll
date in December. Taxes such as federal and state withholding and FICA contributions would
apply. PERA would also apply.
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• Should an employee terminate during the year, they will not receive any longevity pay.
Longevity pay is only paid to employees that are active at the time payment is scheduled to be
made. If an employee is out on FMLA leave, they are eligible for longevity pay.
• If an employee terminates employment with the City, then is re-hired, years of service shall be
calculated from the initial hire date as long as no more than 6 months have passed between the
termination date and re-hire date. If more than 6 months have passed between the termination
date and re-hire date, longevity pay is calculated based on the re-hire date.
• Longevity pay applies only to benefit earning full-time and part-time employees.
Retirement Recognition
Employees retiring after ten or more years of service shall receive a proclamation day in their honor
presented by the City Council at a City Council meeting.
Policy History: This is the current and most recent version of this policy.
Previously:
Adopted: November 24, 2014
Revised: November 9, 2015
1
CITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO: 2024-43
APPROVING A REVISED EMPLOYEE AND VOLUNTEER RECOGNITION POLICY
WHEREAS, the City previously adopted an Employee and Volunteer Recognition Policy on November 9, 2015;
and
WHEREAS, the City has made certain revisions within the Employee and Volunteer Recognition Policy; and
WHEREAS, the City Council has met to discuss and review the revised policy; and
WHEREAS, the City Council has determined that the revised policy shall be in force and effect upon the date
of adoption of this resolution.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OTSEGO, MINNESOTA:
1.That the revised Employee and Volunteer Recognition Policy as attached hereto is hereby adopted
effective immediately.
2.That the Employee and Volunteer Recognition Policy previously adopted on November 9, 2015 is no
longer in force and effect.
ADOPTED by the Otsego City Council this 10th day of June, 2024.
MOTION BY:
SECONDED BY:
IN FAVOR:
OPPOSED:
CITY OF OTSEGO
__________________________________
Jessica L. Stockamp, Mayor
ATTEST:
_________________________________
Audra J. Etzel, City Clerk