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HomeMy WebLinkAbout5.E.4. Community Center Employee Membership Policy-Res. No. 6875 5..e.1. City of Shako pee MEMORANDUM C^ ~. ~, \7''1'" , ~,c,' .v.' I:" '.'.!j U ~ :",' j e'1 ,_~ ;i H" I fltiJ TO: Mayor and City Council Mark McNeill, City Administrator FROM: Kris Wilson, Assistant City Administrato1-tU0 SUBJECT: Community Center Employee Membership Policy DATE: February 13, 2009 Introduction The City Council is asked to adopt the attached policy regarding employee memberships to the Shakopee Community Center. Background Staffhas recently learned that the no-cost membership to the Shakopee Community Center that is currently offered to City employees must be treated as a non-cash, taxable fringe benefit, according to IRS regulations. This led us to examine the benefit and the way we currently administer it and develop a new, written policy regarding the benefit. City Council minutes :from two different meetings in the late 1990s show that the Council authorized extending no-cost Community Center memberships to both full and part-time employees. However, beyond the brief mention of a motion being made, seconded and approved that appears in these minutes, we have no written policy outlining the details of this benefit or how it will be administered. With the new tax implications of the benefit, we felt a clear and concise written policy would be in the City's best interests, The proposed policy was developed after reviewing how this issue is handled by the cities of Chaska and Eden Prairie and based on input from both Human Resources and Community Center staff. The attached policy largely continues current practice while making a few modifications intended to align the policy with our other employee benefits. In short it allows employees to receive a no-cost single membership to the Shakopee Community Center and gives them the option to obtain a family membership by paying the difference between the single and family membership fees. It specifies that memberships for full-time employees and paid-on-call firefighters will expire on the last day of the calendar month in which they end their employment. This is consistent with the ending date of our other employee benefits, such as , medical and dental insurance. Part-time, temporary and seasonal employees would be eligible for a no-cost three-month membership, which can be renewed as long as they continue to be actively employed by the City. Recommendation: Staff recommends that the Council adopt the attached policy regarding employee memberships to the Shakopee Community Center. Budget Impact While not identical, the proposed policy is very similar to the current practice. Therefore we do not expect any budgetary impact on Community Center revenues. Relationship to Vision This is a housekeeping item. Requested Action Ifit concurs, the Council is asked to offer Resolution No. 6875, a Resolution Adopting a Policy on Employee Memberships to the Shakopee Community Center, and move its adoption. . RESOLUTION NO. 6875 A RESOLUTION ADOPTING A POLICY ON EMPLOYEE MEMBERSHIPS TO THE SHAKO PEE COMMUNITY CENTER WHEREAS, the City of Shakopee operates a Community Center that provides opportunities for exercise, recreation, entertainment and community gathering; and WHEREAS, the City wishes to support the physical and mental wellness of its employees by extending to them the benefits of Community Center membership; and WHEREAS, due to the size of the City workforce and the tax obligations associated with providing employee memberships, there is a need for a clear and concise policy regarding the provision of employee memberships; NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHAKO PEE, MINNESOTA, that it does hereby adopt the attached policy on Employee Memberships to the Shakopee Community Center. BE IT FURTHER RESOLVED that the policy adopted herein supersedes any and all previous or contradictory policies or practices regarding this issue. Adopted in adjourned regular session of the City Council of the City of Shakopee, Minnesota held this day of , 2009. Mayor of the City of Shakopee ATTEST: City Clerk City of Shakopee Administrative Policy No. 284 Emplovee Memberships to the Shakopee Community Center Regular Employees and Paid-On-Call Firefighters Employees holding positions listed on the City's Full-Time Pay Plan, as well as paid-on-call firefighters, are eligible for a complimentary, individual membership to the Shakopee Community Center. Employees may elect to upgrade to a family membership by paying the difference between a single resident membership and a family resident membership. For the purposes of this benefit, family memberships may include only the employee's spouse and dependent children. When an individualleaves employment with the City, their Community Center membership shall terminate on the last day of the calendar month in which their employment ends. The fee paid to upgrade to a family membership is non-refundable and the entire membership shall terminate at the same time. According to IRS regulations, this complimentary membership is a non-cash, taxable fringe benefit. Therefore, the value ofthis benefit shall be reflected in the employee's taxable earnings on the first paycheck of each month, or in the case of firefighters, on their monthly check for calls, drills and meetings. Employees wishing to utilize this benefit shall apply for the membership in person at the front desk of the Community Center and will be required to present their employee J.D. at the time of application. Staff at the Community Center will notify Human Resources of all new or renewed memberships. Similarly, Human Resources will notify Community Center staff when an individual ends employment with the City. Part-Time, Temporary and Seasonal Employees Employees holding one or more positions listed on the City's Part-Time, Temporary and Seasonal Pay Plan are eligible for a complimentary, individual membership to the Shakopee Community Center. This complimentary membership is good fora period of three-months and may be renewed for additional three-month periods so long as the individual continues to be actively employed with the City. Employees may elect to upgrade to a family membership by paying the difference between a single resident membership and a family resident membership. The cost of the family upgrade shall be charged in three-month increments to correspond with the duration of the membership. For the purposes ofthis benefit, family memberships may include only the employee's spouse and dependent children. According to IRS regulations, this complimentary membership is a non-cash, taxable fringe benefit. Therefore, the total, lump-sum value of this benefit shall be reflected in the employee's taxable earnings on the first paycheck following their application for or renewal of a Community ;10 e~\/{(z Etvn S.Ee -1 f urJ PC~( Oc.CrcU ?1.faLLj Ie f+ off {)f umH {'Y1-( VV/ Q .' Center membership. Staff at the Community Center will notify Human Resources of all new or renewed memberships. Employees wishing to utilize this benefit may obtain a membership application form at the front desk ofthe Community Center and will be required to obtain the signature of the full-time Recreation Supervisor who oversees the area in which they work. * * * * NOTE: Employees holding family memberships as of the adoption of this policy who have listed individuals on their membership who fall outside of this policy's definition of "family", will be allowed to retain Community Center membership for those individuals through the expiration oftheir current membership. However, all new family memberships and membership renewals from this point forward will be limited to the employee, their spouse and dependent children. "