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ITEM 5.3 Adoption of Employee and Volunteer Recognition PolicyD Otkoo MINNESOTA V DEPARTMENT INFORMATION Request for City Council Action ORIGINATING DEPARTMENT: REQUESTOR: MEETING DATE: Administration Lori Johnson, City Administrator November 9, 2015 PRESENTER(s): REVIEWED BY: ITEM #: Lori Johnson, City Administrator 5.3 AGENDA ITEM DETAILS RECOMMENDATION: Recommend adoption of the attached amended Employee and Volunteer Recognition Program Pol ARE YOU SEEKING APPROVAL OF A CONTRACT? No IS A PUBLIC HEARING REQUIRED? No BACKGROUND/JUSTIFICATION: On November 24, 2014, the City Council approved the Employee and Volunteer Recognition Program Policy. The understanding at that time was that the next phase of the recognition program, a years of service recognition program, would be approved later. The attached Service Recognition section of the amended Employee and Volunteer Recognition Program Policy is the result of efforts by the Employee Recognition Committee, Don Mass, Warne Johnson, Tami Loff, Ross Demant, and Barb Williams. This addition to the existing policy furthers the intent of the Employee and Volunteer Recognition Program, which is to increase morale and employee motivation, to encourage retention and enhance recruitment of highly skilled employees, and to celebrate the accomplishments of employees. I support the proposed Service Recognition program because it shows appreciation to employees while being fiscally responsible to those we serve. Additionally, the Administrative Subcommittee reviewed the proposed policy at its recent meeting and recommends approval. In summary, the Service Recognition policy is two pronged: it recognizes current employees at five-year increments and retiring employees with at least ten years of service. First, the policy acknowledges employees at five-year increments with a gift card of $10 per year of service. The cost of this recognition program is typically under $500 per year and the cost over five years based on existing employees is $1,750. The cost would decrease if any eligible employee resigns during that five-year timeframe. Second, an employee retiring after ten years of service is recognized through a proclamation approved by the City Council proclaiming a day in their honor. Because some employees may retire before receiving any years of service recognition, a grandfather clause is included in the policy. For the first four years of the policy, any employee retiring with at least ten years of service who has not received recognition at a five-year increment will receive that recognition at time of retirement. The recognition will be based on the highest years of service increment attained. For instance, an employee retiring with 17 years of service between 2016 and 2019 would receive recognition at the 15-year level. SUPPORTING DOCUMENTS: X ❑ ATTACHED ❑ NONE • Employee and Volunteer Recognition Program Policy POSSIBLE MOTION Please word motion as you would like it to appear in the minutes. Motion to approve the Employee and Volunteer Recognition Program Policy as amended. BUDGET INFORMATION FUNDING: BUDGETED: X ❑ YES City Council Training budget allocation ❑ NO ACTION TAKEN ❑ APPROVED AS REQUESTED ❑ DENIED ❑ TABLED ❑ OTHER (List changes) COMMENTS: City of Otsego Employee and Volunteer Recognition Program Policy 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 a 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 will set the budget for this event each year with adoption of the General Fund Budget. Employee Recognition: To recognize employees for their dedication and service to the City, the City Council has authorized a budget of $25 per person for each full-time and part-time regular employee and for the seasonal employees working at the time of the event. 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 contribution of the employees to the City and its residents. The funds may be spent for one or two events per year but in no case shall exceed the budgeted amount. The Finance Department shall determine the number of employees and the budget available. Examples of recognition activities/events include: a picnic, holiday party, 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, 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) Page 1 of 2 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. Service Anniversary Recognition Employees shall be presented a certificate of appreciation recognizing their years of service starting at five years and then at five year increments thereafter. The Employee shall receive a gift card in the amount of $10.00 per year of service. The recognition shall be presented at the yearly employee holiday luncheon. 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. randfather Clause Employees retiring in 2016 through 2019 with at least ten years of service who have not received recognition at a five year increment will receive that recognition at the time of retirement. The recognition will be based on the highest years of service increment attained. For instance, an employee retiring with 17 years of service would receive recognition at the 15 year level. Adopted: November 24, 2014 Amended: November 9, 2015 I Employee Service Recognition section added Page 2 of 2