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Home My WebLink About10.E.2. Authorization to Promote to Project Coordinatorpwtm General Business 10. E. 2. SHAKOMT TO: Mayor and City Council Mark McNeill, City Administrator FROM: Kris Wilson, Assistant City Administrator DATE: 05/20/2014 SUBJECT: "Trade Time for Fitness" Employee Benefit Program (B) Action Sought The Council is asked to authorize a new component to employee's current sick leave benefit. Background The Employee Wellness Committee has proposed a new component to the City's existing sick leave policy. Called "Trade Time for Fitness," the program is similar to ones already in place for employees of Hennepin County and the City of Austin, Minnesota, with a few adjustments. Under the proposed program, employees with more than 80 hours of sick leave on the books could submit a claim to cash out a portion of their accrued sick leave in order to be reimbursed for wellness - related expenses. Reimbursement claims could not exceed $1,000 per calendar year and could not result in an employee's sick leave balance falling below 80 hours. A detailed description of the proposed program and its terms and conditions is attached. The proposed program has multiple benefits for the City. In addition to supporting physical activity and general wellness for our employees, the program would also serve to moderate the City's financial liability by reducing the amount of accrued leave on the books. It may also serve as a deterrent to employee misuse or abuse of sick leave by providing an alternative form of benefit of value to employees. Budget Impact The program is expected to have very little financial impact on the City. Currently the City funds its liability for accrued leave time through a "Compensated Absences" fund. Reimbursements provided to employees through the Trade Time for Fitness will reduce the level of funding necessary for the compensated absences fund. The Trade Time for Fitness concept has been reviewed by the City's auditor who reported having no concerns with the idea. Recommendation I recommend adopting the proposed program for all benefits - eligible employees. Relationship to Vision This item relates to Goal B: Positively manage the challenges and opportunities presented by growth, development and change. "Growth, development and change" are forces that affect the City not just in its physical development but also as an organization and an employer. The City needs to be open to innovative and cost effective ways of providing employee benefits, as well as alternatives to our traditional one -size fits all benefits package. Requested Action The Council is asked to authorize the proposed Trade Time for Fitness program for all benefits - eligible City employees, effective June 1, 2014. Attachments: Trade Time for Fitness Program Description potA SHAKOPEE Trade Time for Fitness Benefits - eligible employees may cash -out a portion of their accrued sick leave to be reimbursed for the cost of wellness related expenses. How it works: An employee has purchased a new bike at a cost of $580.00. The employee has a balance of 150 hours of sick leave accrued and a current hourly wage of $28.44. The employee completes a Trade Time for Fitness Reimbursement form and attaches an itemized receipt for the purchase. On the first payroll of the following month, the employee shall be paid for their hours worked that pay period and the necessary amount of sick time required that equals the purchase price. The employee's sick leave bank will be reduced by 20.4 hours ($580 divided by $28.44) to 129.6 hours. The $580 reimbursement will be taxable with a net payment to the employee dependent upon their personalized tax withholdings. • In order to be eligible for the program, an employee must have more than 80 hours of accrued sick leave and the requested reimbursement may not draw the employee's sick -leave balance below 80 hours. • The items reimbursed by the Trade Time for Fitness Program are for use by the employee only. • If an item is not on the list of eligible expenses, it must be pre- approved by the Wellness Committee to be eligible for reimbursement. • The maximum amount of sick leave cashed out may not exceed $1,000 for the calendar year. • Requests for reimbursement may be submitted no more than once per calendar month, a maximum of 12 reimbursements per year. • The minimum reimbursement amount shall be $20.00. One reimbursement form may cover multiple items. • Receipts must be dated during the calendar year the claim is filed. • If a used item is purchased, a signed bill of sale with contact information for the seller must be provided. • If an item priced greater than $1,000 is purchased, only $1,000 will be reimbursed. • Employees in the process of terminating employment with the City are not eligible for this program. Eligible Expenses: • Health club memberships for the employee — (i.e., monthly dues plus tax and any enrollment fees minus any credits from a health insurance plan). If a dual or family membership is purchased, only the amount of a single membership will be reimbursed. The membership plan noting membership level pricing must be provided with a claim. • Weight loss or tobacco cessation programs (e.g., nicotine gum and patches, hypnosis, acupuncture, Weight Watchers). Food or nutritional supplements as part of a program is not eligible. • Stress management classes and programs • Fitness and exercise classes • Personal trainers • New and used equipment (e.g., bicycle, treadmill, golf clubs, snow and skateboards, sports equipment, scuba diving equipment, snowshoes, cross country skis, skates, canoes and kayaks, bike helmet, shin pads, heart rate monitor /app, fitness or interactive sport module for Wii or similar game console, fitness DVD, yoga mat, life vest) • Equipment maintenance, repair, parts / warranties • Registration fees (e.g., sport league registration, court time, open gym, ice rink time, bike locker, equipment rental, or events such as running races, walks, bike rides, and triathlons) • Running / walking shoes used specifically for: running, walking or hiking • Groupons or similar discount may be submitted for reimbursement providing service or item purchased is eligible under the program. Ineligible expenses • Club memberships and league fees of a primarily social nature (e.g., country club, golf, bowling) • Clothing Items (e.g., jackets, shirts, shorts, uniforms, swimsuits) • Food and supplements, even if purchased in conjunction with a weight loss program • Tracking/ training books or manuals • Backpacks or luggage • Medical expenses (e.g., lab tests, prescriptions, co -pays, medical equipment) • Camping, fishing or recreational equipment (e.g., tents, packs, coolers) • Fees (e.g., golf green fees, ski lift tickets or ski club membership, licenses, park permits, tanning) • Gift cards • Day care, recreation club, or similar • Tips for services • Reimbursements for more than one piece of the same equipment per year (e.g. two bicycles). Trade Time for Fitness SHAKOPEE Reimbursement Form Section to be completed by the Employee: Name: Department: Total Amount of Receipts Attached: (Maximum total of $1,000 per calendar year) Employee's Signature: Date: *By signing this form, I acknowledge that my sick leave bank will be reduced by the appropriate amount of hours to cover my reimbursement amount. I understand that the reimbursement is taxable income and is irreversible and may not be converted back into sick hours at a later date. I also acknowledge that the item(s) purchased is /are for my own personal use and intended to improve my overall health, fitness and /or wellness. Section to be completed by the Employer: Amount to be paid: Hourly Rate: Current Sick Bank Balance: Amount of Sick Hours to Process: Balance of Sick Bank: (Must maintain a minimum balance of 80 hours) Approved for Payment By: Date: