HomeMy WebLinkAbout15.E.5. Amend Personnel Policy to Require Payroll Checks to be Direct Deposit-Res. No. 6108
CITY OF SHAKOPEE /0.E.S;
Memorandum
co~~~~rST
~ ~. "..-: ./},1<i:l
.. .'vL't
TO: Mayor and City Council ----...... ~- --
-- -- ---
FROM: Mark McNeill, City Administrator
SUBJECT: Personnel Policy Amendment - Direct Deposit
DATE: September 3,2004
INTRODUCTION:
The Council is asked to amend the personnel policy to require direct deposit of payroll
checks for all city employees.
BACKGROUND:
Changes in the banking industry during the past years has made it more and more
common place for payroll checks to be deposited directly to an employee's bank account.
That is much more efficient for the City, and is actually a money saver, in that payroll
checks do not have to be separately "cut". However, for what are apparently personal
reasons, 12 ofthe City's 110 full time employees still prefer to have manual checks cut.
Last year, legislation was passed to allow the state to require direct deposit for all state
employees. Recently, changes to State Statute was adopted that allows cities to require
direct deposit of payroll checks for all city employees.
In order to make the most efficient use of City's resources, staff recommends that all
employees be required to receive direct deposit. This would be effective with the pay
check of November 5th, so as to allow employees an opportunity to transition to the new
practice.
RECOMMENDATION:
It is recommended that the personnel policy be amended to require direct deposit of
payroll checks for all city employees.
ACTION REQUIRED:
If the Council concurs, it should, by motion authorize adopt the following Resolution:
RESOLUTION NO. 6108
A RESOLUTION OF THE CITY OF SHAKOPEE, MINNESOTA AMENDING
RESOLUTION NO. 4231, ADOPTING A PERSONNEL HANDBOOK
~~
Mark McNeill
City Administrator
RESOLUTION NO. 6108
A RESOLUTION OF THE CITY OF SHAKOPEE, MINNESOTA, AMENDING
RESOLUTION NO. 4213, ADOPTING A PERSONNEL HANDBOOK
WHEREAS, on May 2, 1995, the City Council adopted Resolution No. 4213,
adopting a new Personnel Handbook for the Employees of the City; and
WHEREAS, the City Council approved mandatory direct deposit of payroll
checks by all newly hired employees effective June 1, 1999, and
WHEREAS, the Minnesota State Legislature in its 83rd Legislative Session (2003-
2004) approved S.F. No. 1787, 2nd Engrossment which authorizes the governing body of
a municipality to require direct deposit for all its employees who are being paid by its
payroll system; and
WHEREAS, the electronic direct deposit of pay checks will benefit the city with
cost savings in the areas of payroll processing, storage space for the required retention of
paper checks, bank service fees and maximize full utilization of the city's payroll system.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OFSHAKOPEE, MINNESOTA, that Section III Compensation and Job
Classification Plan is amended as follows:
D. Paydays. Employees normally shall be paid bi-weekly. When a payday
falls on a holiday, employees shall receive their pay the preceding workday.
E. Direct Deposit. As permitted bv Minnesota S.F. No. 1787. 2nd
Engrossment: 83rd Legislative Session. direct deposit of payroll is required
for all employees being paid by the city's payroll svstem.
GF. Pay Periods. The pay period for all employees shall be a fourteen (14) day
period beginning on Monday at 12:01 a,m. and continuing to the second
following Sunday at 12:00 a.m. (midnight).
All subsequent paragraphs will be re-Iettered alphabetically.
Note: The stricken language is deleted; the underlined language is inserted.
Passed in session ofthe City Council of the City of Shako pee,
Mimlesota, held this day of ,2004.
Mayor of the City of Shakopee
Attest:
City Clerk
I