A-1. Vacation AccrualA -1
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MEMORANDUM
CITY OF
TO: Todd Gerhardt, City Manager
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FROM: Laurie Hokkanen, Assistant City Manager�►�`
7700 Market Boulevard
DATE: November 9, 2011
PO Box 147
to reduce the maximum vacation accrual to 2x the employee's annual earning rate
Chanhassen, MN 55317
SUBJ: Vacation Accrual Cap Reduction
Administration
BACKGROUND
Phone: 952.227.1100
Number of
Employees
Affected
1.5x
Fax: 952.227.1110
At work session on September 26, staff reviewed the sick and vacation benefits
Building Inspections
provided to city employees. Staff recommended that a plan should be put in place
Phone: 952.227.1180
to reduce the maximum vacation accrual to 2x the employee's annual earning rate
Fax: 952.227.1190
(from 3x currently). The City Council also discussed the potential of reducing the
3 weeks
accrual rate to 1.5x. The City Council directed staff to work on an
Engineering
implementation plan for a reduction in balances.
Phone: 952.227.1160
2
Fax: 952.227.1170
Staff convened an employee committee to discuss and review options for
Finance
accomplishing this task. The group brainstormed three plans. The chief concern
Phone: 952.227.1140
was how to structure the plans in order to not create additional liability for the
Fax: 952.227.1110
City in terms of overtime and /or a gap in staffing that would hinder our ability to
provide services. As of October 1, a total of 1,517 (38 weeks over 16 people)
Park Recreation
hours would need to be used to get all employees under the 2x accrual cap. If the
Phone: : 952.227.1120
Fax: 952.227.1110
cap were reduced to 1.5x, 3,490 hours (87.25 weeks over 23 people) would need
to be used. (This number represents a "snapshot" look, as balances will change as
Recreation Center
employees earn/use leave.)
2310 Coulter Boulevard
Phone: 952.227.1400
Option 41
Fax: 952.227.1404
Employees would be given a number of years equal to their accrual rate to reduce
Planning &
Natural Resources
their balance. Essentially, this equates to taking one extra week of vacation per
Phone: 952.227.1130
year if we set the max accrual rate to 2x.
Fax: 952.227.1110
Public Works
7901 Park Place
Phone: 952.227.1300
Fax: 952.227.1310
Senior Center
Phone: 952.227.1125
Fax: 952.227.1110
Web Site
www.ci.chanhassen.mn.us
Annual Leave
Accrual Rate
Years to Reduce
Balance to 2x
Number of
Employees
Affected @2x
Number of
Employees
Affected
1.5x
5 weeks
5
6
11
4 weeks
4
6
7
3 weeks
3
3
4
2 weeks
2
1
1
G: \Admin \LH \City Council \Options for moving from 3x to 2x vacation accrual.doc
Chanhassen is a Community for Life - Providing for Today and Planning for Tomorrow
Option #2
All employees with less than 20 years of service as of December 31, 2011 would
have 3 years to reduce their balance. All employees with more than 20 years of
service would have five years to reduce their balance.
Option #3
All employees would be given 4 years to reduce their balance.
RECCOMENDATION
Staff recommends the balance reduction be implemented through the method
outlined in Option #1 to 2x accrual. The approach decreases the balances over
time, protecting the City from incurring additional costs or difficulties in
providing services while also allowing employee flexibility and recognizing the
value of employee tenure.
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