10/15/2019 - City Council Human Resources CommitteeAGENDA
HUMAN RESOURCES COMMITTEE MEETING
TUESDAY, OCTOBER 15, 2019
TIME: IMMEDIATELY FOLLOWING THE CITY COUNCIL MEETING
CITY HALL TRAINING ROOM
I. AGENDA ADOPTION
II. REVIEW VACATION ACCRUAL SCHEDULES
III. OTHER BUSINESS
IV. ADJOURNMENT
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EAGAN
To: Mayor Maguire and Councilmember Fields
From: Dianne Miller, Assistant City Administrator
Lori Peterson -Weitzel, Human Resources Manager
Date: October 15, 2019
Subject: Vacation Accrual Study
For many years, Eagan's vacation leave has been an ongoing topic of discussion as it is becoming
more difficult to hire new employees at two weeks of vacation, particularly when many comparable
cities and private sector positions have higher accrual ratings. Likewise, vacation accrual has been
the most frequently requested issue for adjustment through the labor negotiation process.
In recent years, in an effort to address the differences with other cites, Council has approved specific
changes to the City's vacation accrual policy. Approved changes include:
• Since 2016, employees may purchase up to 40 hours of vacation time, which is essentially
borrowing against an employee's wages to reduce the chances of taking up to 40 hours off
without pay. Most of the bargaining units have adopted this program as well.
• Since 2016, employees may convert up to 80 hours of sick leave into 40 hours of vacation
leave with certain parameters. Not all bargaining units have negotiated this option.
• In 2018, a new accrual level for those with 20 years of service in Eagan was added for non-
union employees and for collective bargaining agreements with "me too" provisions, including
Public Works/Parks Maintenance, Clerical, and Police Officers.
Enclosed on pages 3 and 4 is a summary of comparable cities' vacation schedules. It is important to
note that the comparisons can be difficult given the various approaches cities take to leave time,
including vacation and sick versus the use of Paid Time Off (PTO). Eagan operates under a system
with vacation and sick leave.
Findings:
Of the ten (10) comparable cities that reported data, the majority offer more than than two (2) weeks
of vacation leave upon hire or are regularly negotiating higher vacation accruals upon hire in order to
get a candidate to accept a position.
Ongoing Challenges:
As Eagan seeks to fill vacancies, candidates from the private sector (and the public sector),
will not accept the current vacation schedule offered.
Non-union finalists who are made conditional offers are often negotiating vacation leave prior
to accepting the position, resulting in internal equity issues.
Current Policy (see page 5-8 for full detail of vacation policy)
Years of Service Vacation Accrual
13.2.2 Vacation Advance for Newly hired Employees: Upon hire, new employees shall be advanced
of their annualized vacation leave benefit into their vacation leave bank. Upon completing 0
of service, employees will then accrue vacation leave each pay period according to the
vacation schedule.
Proposed Change — to be effective January 1, 2019
In an effort to strengthen the City's position in a competitive hiring market and to ensure internal
equity, the following change is proposed:
• Increase the annual vacation accrual upon hire from 2 weeks to 3 weeks, which equates to 15 -
eight (8) hour days of vacation leave for all new hires.
• Adjust the vacation accrual level of existing employees with less than five years' experience to
3 weeks of vacation instead of 2 weeks.
• Revise the vacation schedule for all benefit eligible, non-union employees as reflected below:
Years of Service Vacation Accrual
0-10
2 weeks (80 hours per year)
11
3 weeks (120 hours per year)
11
128 hours per year
12
136 hours per year
13
144 hours per year
14
152 hours per year
15
160 hours per year
20
184 hours per year
13.2.2 Vacation Advance for Newly hired Employees: Upon hire, new employees shall be advanced
of their annualized vacation leave benefit into their vacation leave bank. Upon completing 0
of service, employees will then accrue vacation leave each pay period according to the
vacation schedule.
Proposed Change — to be effective January 1, 2019
In an effort to strengthen the City's position in a competitive hiring market and to ensure internal
equity, the following change is proposed:
• Increase the annual vacation accrual upon hire from 2 weeks to 3 weeks, which equates to 15 -
eight (8) hour days of vacation leave for all new hires.
• Adjust the vacation accrual level of existing employees with less than five years' experience to
3 weeks of vacation instead of 2 weeks.
• Revise the vacation schedule for all benefit eligible, non-union employees as reflected below:
Years of Service Vacation Accrual
0-10
3 weeks (120 hours per year)
11
128 hours per year
12
136 hours per year
13
144 hours per year
14
152 hours per year
15
160 hours per year
20
184 hours per year
In addition, upon hire, new employees shall be advanced 40 hours of their annualized vacation leave
into their vacation bank. Upon completing 4 months of service, employees will then accrue vacation
leave each pay period according to the above vacation schedule.
2019 Vacation Accrual by City
YEARS OF
CITY
EMPLOYMENT
VACATION IN WEEKS
Apple Valley —PTO
0-5 years
3 weeks
6-10 years
4 weeks
11-15 years
5 weeks
16-20 years
5.4 weeks
21 + years
6 weeks
Bloomington
0-3 years
2.10 weeks
4-6 years
3 weeks
7-9 years
3.2 weeks
10-12 years
3.4 weeks
13th year
3.6 weeks
14th year
3.8 weeks
15th year
4 weeks
16th year
4.2 weeks
17th year
4.4 weeks
18th year
4.6 weeks
19th year
4.8 weeks
20th year
5 weeks
21St year
5.2 weeks
Over 21 years
5.4 weeks
Brooklyn Park
0-5 years
2 weeks
(Regularly negotiates
6-10 years
3 weeks
higher than 2 weeks, or
11th year
3.2 weeks
will load a bank of days
12th year
3.4 weeks
upon hire)
13th year
3.6 weeks
14th year
3.8 weeks
15th year
4 weeks
Burnsville
0-5 years
2.4 weeks (12 days)
Between 5-10 years
3 weeks (15 days)
Between 10-15 years
3.6 weeks (18 days)
Between 15-20 years
4 weeks (20 days)
20 + years
4.6 weeks (23 days)
25
5 weeks (25 days)
Coon Rapids
1-5 years
2 weeks
6-10 years
3 weeks
11th year
3.2 weeks
12th year
3.4 weeks
13th year
3.6 weeks
14th year
3.8 weeks
15th — 20th year
4 weeks
21St year
4.2 weeks
22nd year
4.4 weeks
23`d year
4.6 weeks
24th year
4.8 weeks
25 + years
5 weeks
Eagan
0-4 years
2 weeks
5-10 years
3 weeks
11 years
3.2 weeks
12 years
3.4 weeks
13 years
3.6 weeks
14 years
3.8 weeks
15 years
4 weeks
20 years
5 weeks
Lakeville (PTO plan
0-4 years
3 weeks (non-union)
required for non-union
5-10 years
3 weeks
employees)
15-20 years
4 weeks
20+
5 weeks
Maple Grove
0-4 years
2 weeks
5-10 years
3 weeks
10-15 years
4 weeks
15 -19 years
21 days
19-24 years
22 days
24-29 years
23 days
30 years
25 days
Minnetonka*
0-5 years
2 weeks
6-10 years
3 weeks
11 years
3.2 weeks
12 years
3.4 weeks
13 years
3.6 weeks
14 years
3.8 weeks
15-20 years
4 weeks
21+ years
5 weeks
Plymouth*
0-4 years
2.5 weeks
5-10 years
3 weeks
15 + years
4 weeks
Woodbury
0-5 years
2 weeks
(100% credit for
6-10 years
3 weeks
previous municipal
11th year
3.2 weeks
service; new
12th year
3.4 weeks
employees are slotted
13th year
3.6 weeks
in based on previous
14th year
3.8 weeks
years of service)
15th year
4 weeks
*2018 rates are shown as they did not respond to the data request in 2019
13.1
13.2
CURRENT POLICY
SECTION THIRTEEN
VACATIONS
Eligibility:
13.1.1 All full time and part time regular employees, as defined in Section 2.2
shall be eligible for paid vacation. Regular part-time employees with
an employment status of less than 40 hours per week, who shall be
eligible for paid vacation on a pro rata basis for actual hours worked.
13.1.2 Temporary employees, Seasonal employees, Part Time Recurring
Employees without Benefits, or Interns shall not be eligible for
vacation benefits.
Schedule for Accrued Vacation:
13.2.1
Maximum
(Inclusive) Allowable
Years of Hours Balance
Service Vacation At Ani
0-4
80 hrs/yr
120
5-10
120 hrs/yr
180
11
128 hrs/yr
192
12
136 hrs/yr
204
13
144 hrs/yr
216
14
152 hrs/yr
228
15
160 hrs/yr
240
20
184 hrs/yr
276
13.2.2 Vacation Advance for Newly hired Employees: Upon hire, new
employees shall be advanced 50% of their annualized vacation leave
benefit into their vacation leave bank. Upon completing 6 months of
service, employees will then accrue vacation leave each pay period
according to the vacation schedule.
13.2.3 Vacation Maximums: Employees shall earn vacation time at a rate of
accrual, based on a bi-weekly pay schedule. Vacation accruals and
maximum balances shall be prorated, based on employment status. No
vacation will be earned over the maximum allowable hours balance at
any time. When this limit is reached, subsequent accumulation of
vacation is forfeited by the employee.
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13.2.4
Vacation Maximum Exceptions:
1) The requirement to forfeit vacation when the maximum cap is reached may be
waived by written approval of the City Administrator. (Revised by Eagan City
Council on 7/2/2013)
2) With the purchase of vacation as defined in Section 13.6, the employee may
exceed their applicable maximum vacation balance by no more than 40 hours per
year as a full time employee. For an eligible employee with a status of less than
40 hours per week, the additional vacation purchased shall be prorated.
13.3 When Taken:
13.3.1 Immediate supervisors will consult with all employees eligible for
vacations. From such consultation, the immediate supervisors will
establish working vacation schedules with first consideration given to
the efficient operation of the department and second to the wishes of
the employees as to vacation time.
13.3.2 Senior employees will be given schedule preference for all requests
received before May 1 of each year. Thereafter requests and
scheduling will be considered in the order submitted. Employees shall
be encouraged to take vacations during the slack season of department
activity. Three week vacations during a department's busy season are
discouraged and should be avoided. An employee shall not be
permitted to take a vacation of four consecutive weeks or more without
the approval of the City Administrator as well as the permission of the
immediate supervisor.
13.3.3 For each day of vacation desired, an equal number of working days
advance notice shall be given to the supervisor.
13.3.4 In no case will any time be taken as vacation without advance approval
of the immediate supervisor. Unauthorized time off will be considered
leave without pay and subject to disciplinary actions.
13.3.5 No advance of vacation time will be allowed.
13.3.6 Scheduled vacation time may be canceled upon the discretion of the
supervisor in cases where the safety, health and welfare of the
community are involved. Any vacation time so canceled would not be
regarded vacation time and would then be rescheduled at a later date.
13.3.7 Scheduled vacation time may be canceled upon request of the
employee with approval by the supervisor in cases where unforeseen
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circumstances (such as illness of the employee or members of his/her
family, debilitating accident, etc.) cause the cancellation of vacation
plans. However, such cancellation will not be allowed if it adversely
affects the efficient operation of the department. Any vacation time so
canceled would not be regarded as vacation time and would be
rescheduled at a later date. In such rescheduling cases, no preference
will be given to seniority of the employee.
13.4 Waiving of Vacations: Vacation is granted for the purpose of employee recreation;
and, therefore, no employee shall be permitted to waive such vacations for the
purpose of receiving double pay.
13.5 Upon Termination: An employee who is eligible to take vacation leave with the City
and who leaves the employment of the City in good standing after the completion of
six or more months of service shall be paid for vacation accrued. (Subject to the
conditions as provided under the resignation section of this personnel policy.)
(Revisions approved by City Council on 9/16/2014)
13.6 Vacation Purchase Provision:
Eligible employees may purchase up to 40 hours of vacation leave one time per calendar year.
Eligible Employees:
Nonunion full time and nonunion part time regular employees as defined in Section 2.2 shall be
eligible. For benefit eligible employees with a status of less than 40 hours per week, a prorated
amount would apply.
To utilize vacation time purchased, an employee should code their timesheet to Code 201.
To purchase vacation:
Eligible employees must complete the request form and route to Payroll/Finance. This request
form authorizes the City of Eagan to deduct from the employee's paycheck, the equivalent
liability of no more than 40 hours of vacation leave in a calendar year. The cost of the vacation
purchase will be pro -rated across the identified pay dates for the calendar year. The purchased
vacation must be used as time off within the calendar year in which it was purchased, no later
than the last full pay period of the current calendar year.
For 2017:
Employees may request to purchase vacation no later than April 26, 2017. The first payroll
deduction will occur on May 5, 2017 and continuing for the remainder of the calendar year.
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In future years, starting 2018:
Employees shall make the request to purchase vacation at the time of annual Open Enrollment,
with the first deduction occurring on the first pay date of the new year.
Eligible new hires, may request to purchase vacation within the first 30 days of employment. The
first deduction will reflect on the pay date in which other benefit deductions initially occur.
Conversion Limitations:
The maximum amount of time converted from sick leave to vacation leave combined with any
vacation time purchased in the same calendar year, shall not exceed a total of 40 hours of
vacation leave per year.
Purchased vacation shall not be considered "accrued" vacation in any Health Care Savings Plan
stipulations. In other words, any provision to transfer vacation leave into an employee's HCSP
will not include any hours of purchased vacation. (Code 201)
Scheduling purchased vacation: All policy provisions of scheduling vacation and obtaining
supervisor approval to take vacation leave, shall apply to purchased vacation in the same fashion
as accrued vacation.
Disclaimers:
• If, for any reason, an active employee purchased vacation that is not utilized as time off
by the last full pay period of the calendar year, the purchased vacation balance shall be
forfeited.
Upon leaving employment, if an employee used purchased vacation as time off, the cost
of the vacation time used as time off, shall be recovered by the City in the employee's
final paycheck.
• Upon leaving employment, if an employee carries a balance of unused purchased
vacation, the value of the unused purchased vacation shall be reimbursed back to the
employee as taxable income.
(Revisions approved by City Council on 8/16/16 and 5/1/18)