MANAGER S MEMORANDUM/ COUNCIL WORK REQUEST REPORT
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1 MANAGER S MEMORANDUM/ COUNCIL WORK REQUEST REPORT Prepared for: Naperville City Council By: City Manager s office 2/14/2019 MANAGER S MEMORANDUM Source: Subject: Action: 1. TED Business Group New Riverwalk Maintenance Policy FYI 2. Human Resources Paid Time Off (PTO) Programs FYI A. COUNCIL WORK REQUEST REPORT
2 CITY OF NAPERVILLE MEMORANDUM DATE: TO: Doug Krieger, City Manager THROUGH: Bill Novack, Director of Transportation, Engineering and Development (TED) Business Group FROM: SUBJECT: Jan Erickson, Riverwalk Administrator New Riverwalk Maintenance Policy PURPOSE: The purpose of this memorandum is to inform the City Council of a new maintenance policy for proposed assets to the Riverwalk. BACKGROUND/DISCUSSION: When the Riverwalk requested approval for the addition of Rotary Harmony Park, the City Council asked the Riverwalk Commission to develop a policy for maintenance of new, proposed Riverwalk amenities. A Riverwalk Commission subcommittee worked several months to write the attached procedures which were approved at the February 13, 2019 Riverwalk Commission meeting. The new policy provides a consistent vehicle for donors to share information about their proposed asset. In addition to requesting information about constructing the proposed amenity, the donor is also required to calculate future maintenance and decommissioning costs. The goal is to have the donor share a portion of the maintenance cost. RECOMMENDATION: Please distribute this memorandum to the City Council through the Manager's Memorandum.
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4 8. 9. Funding Identify individual/entity responsible for funding a. Asset design b. Asset construction c. Asset care and maintenance for the first five (5) years, or as otherwise directed. d. Asset decommissioning Proposal Submittal The proposal shall be submitted to the Riverwalk Administrator, City of Naperville, 400 S. Eagle Street, Naperville, IL Review Process 1. Riverwalk Planning. Design & Construction Subcommittee The proposed addition will first be considered by the Planning, Design & Construction (PDC) Subcommittee of the Riverwalk Commission. The applicant may be asked to make a presentation and answer any questions when the proposed addition is first considered by the PDC Subcommittee. The PDC Subcommittee will review the proposal and provide feedback in writing. If additional information is required, it will be submitted to the Riverwalk Administrator for distribution to the subcommittee. The PDC Subcommittee will forward its comments to the Riverwalk Commission. 2. Riverwalk Commission At the Riverwalk Commission's regularly scheduled meeting, the proposal will be reviewed and either approved, denied, or additional information will be requested. This process could take approximately four weeks. If the Riverwalk Commission approves the addition, the recommendation will be forwarded to the Naperville Park District Parks and Recreation (Parks/Rec) Committee for review. 3. Park District Consideration If the Parks/Rec Committee concurs with the proposal, it will be presented to the Park District Board of Commissioners at its workshop for consideration. The Parks/Rec Committee commonly meets monthly. This process could take approximately eight to ten weeks. If the Park District Commissioners approve the proposal, they will forward it to the Naperville City Council. This could take approximately three additional weeks. 4. City Council Consideration The City Council will review and approve or deny the proposal. Depending on the timing, this could take approximately three additional weeks. 5. Implementation If the City Council approves the addition, the project will be forwarded to the Riverwalk Commission for implementation. Please Note 1. Ownership of the Asset Upon Completion It is hereby understood that any proposed asset that is constructed on the Riverwalk will become the property of the City of Naperville upon completion. 2. Right to Make Modifications The Riverwalk Commission, Naperville Park Board of Commissioners and Naperville City Council reserve the right to request modifications to the submittal before its approval.
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6 DATE: CITY OF NAPERVILLE MEMORANDUM TO: THROUGH: FROM: SUBJECT: Mayor and City Council Doug Krieger, City Manager Rachel Mayer, Finance Director Jim Sheehan, HR Director Paid Time Off (PTO) Programs PURPOSE: The purpose of this memorandum is to provide background on current City of Naperville paid time off policies, to share market data for comparable cities within Illinois, outside Illinois and other public/governmental entities and to recommend hiring a compensation consultant to advise the City on the best approach to take to align its PTO programs. BACKGROUND: Members of the City Council requested a review of the City s time off programs. This memo outlines current paid time off programs offered to employees and comparisons with other Illinoisbased municipalities, outside Illinois-based municipalities and other local public and government entities. The City offers two tiers for time off for employees. Tier I employees participate in either the Traditional Plan or the Time Off Plan (TOP). All sworn Police and Fire personnel are on Tier I time off plans as are employees hired before July 1, Employees hired prior to June 9, 2001 were given a one-time choice to remain in the Traditional Plan or move to TOP as are new sworn Police employees. Tier II employees participate in the PTO-11 Plan. Employees hired after July 1, 2011 are on the PTO 11 Plan (for new employees in some bargaining units, the timing may have been delayed depending on when the change to PTO-11 was negotiated into their contract). Currently, 76% of city employees receive Tier I time-off benefits and 24% receive Tier II time-off benefits. The City has a total of 13 unions representing 62% of the workforce. DISCUSSION: City Plan Descriptions and Details The City has three paid time off plans for vacation and sick leave for employees, the Traditional Plan, TOP and PTO-11. All union contracts, excluding the Fire union contract, follow these three plans (certain union contracts contain some variances for maximum accruals and sick time payouts at retirement). The Fire union contract is based on a 24-hour work day with different
7 Paid Time Off Programs Page 2 of 6 accrual provisions and maximum days to carryforward, however for purposes of categorizing for this discussion have been included as part of the Traditional Plan. 1. Traditional Plan Approximately 44% of employee population a. Employees hired before June 9, 2001 who did not elect TOP. b. Non-union employees and non-sworn union employees have a minimum of years of service (the number is lower for sworn Fire and Police since new employees participate in this plan). The range of years of service in this Plan are 0 years (new hires) to over 20 years (when the accrual maximum is met). c. Sworn police officers and sergeants are eligible by contract to choose between this plan and TOP. Fire sworn personnel are also included as part of this plan since their time off most closely aligns to the Traditional Plan. d. Vacation Days Employees accrue on average 22 days each year. e. Maximum Vacation accrual has been decreased over time (originally up to 400 hours) and currently is 200 hours (25 days) for an employee with 20 or more years of service. f. Sick Days Employees accrue 15 days each year. i. No maximum number of hours accrued. ii. If an employee separates employment prior to retirement eligibility, pursuant to IMRF, there is no cash payout of sick leave. iii. If an employee retires, the City will convert up to 720 hours (90 days) of the employee s earned but unused sick leave and contribute to a Retiree Health Savings Plan (RHSP). iv. Employees retiring with an IMRF pension can apply any accrued but unused, unpaid sick leave over 720 hours to their pension service credit; at a rate of twenty (20) days for one month of service credit, in accordance with IMRF regulations, with a maximum credit of 1 year of service (240 sick days). g. Exempt benefit days Exempt employees hired before July 1, 2011 receive Exempt Benefit Days (or Supervisory Days). Any days not taken in any year are paid out in cash. All eligible employees receive the following Exempt Benefit Days each year: i. Exempt Professional (P) level position 1 day ii. Leadership (L) level positions 3 days iii. Directors 5 days 2. Time Off Plan (TOP) Approximately 32% of employee population a. Employees who elected TOP over the Traditional Plan and all employees hired after June 9, 2001 and before July 1, 2011.
8 Paid Time Off Programs Page 3 of 6 b. Employees have a minimum 7.67 years of service. The range of years of service for this plan is 7 years to over 20 years (when the accrual maximum is met). c. Vacation Days Employees accrue on average 28 days each year. i. Maximum Vacation accrual has been decreased over time (originally up to 480 hours (60 days)) and currently is 160 hours (20 days) for an 8-year employee and up to 240 hours (30 days) for an employee with 20 or more years of service. d. TOP Cash Out - An employee may cash out up to a maximum of 48 vacation hours on a fiscal year basis if they have at least 640 hours (80 days) of sick leave accrued. e. Sick Days Employees accrue 10 sick days each year. i. Maximum 960 hours (120 days). ii. If an employee separates employment prior to retirement eligibility pursuant to IMRF, there is no cash payout of sick leave. iii. If an employee retires, the City will convert up to 720 hours (90 days) of the employee s earned but unused sick leave and contribute to an RHSP. iv. Employees retiring with an IMRF pension can apply any accrued but unused, unpaid sick leave over 720 hours to their pension service credit; at a rate of twenty (20) days for one month of service credit, in accordance with IMRF regulations, with a maximum credit of 1 year of service (240 sick days). v. TOP Elimination Period - Employees may only utilize sick leave after a 2-day elimination period; the employee may draw from PTO, personal leave, floating holidays, exempt benefit days or compensatory time to satisfy the 2-day elimination period. vi. TOP Sick Leave Incentive 401(a) - Employees who utilize 3 or less workdays (24 hours) of sick leave are eligible for a sick leave incentive through a contribution to a 401(a) account established for the employee. The incentive is calculated based on years of service completed. The benefit ranges from 8 hours to 16 hours of pay. The 401(a) account is managed by and portable for the employees. Contributions are tax-free and made each year the incentive is earned. f. Exempt benefit days Exempt employees hired before July 1, 2011 receive Exempt Benefit Days (or Supervisory Days). Any days not taken in any year are paid out in cash. All eligible employees receive the following Exempt Benefit Days each year: i. Exempt Professional (P) level position 1 day ii. Leadership (L) level positions 3 days iii. Directors 5 days
9 Paid Time Off Programs Page 4 of 6 3. Paid Time Off (PTO-11) Approximately 24% of employee population a. Employees hired after July 1, b. Employees have a maximum of 7.67 years of service and their accrual maximum occurs at 16 years. c. Paid Time Off Employees accrue 120 hours (15 days) in their first year and accrue an additional 8 hours per year of service to a maximum of 240 hours (30 days) at year 16. Directors receive 160 hours (20 days) in their first year. d. Maximum PTO accrual is 240 hours (30 days) for an employee with 16 or more years of service; an employee with 8 years of service has a maximum of 176 hours (22 days). e. Sick Days/Exempt Benefit Days Employees earn no additional time off. The City also offers non-union employees additional paid time off, including 9 holidays: New Year s Day Memorial Day Independence Day Labor Day Veteran s Day Thanksgiving Day after Thanksgiving Christmas Eve Christmas Day City employees hired before July 1, 2011 (Tier I) also receive 3 floating holidays. These days must be taken in 8-hour increments, not be taken in conjunction with other types of leave and if not used by end of fiscal year they will be lost. Non-exempt, non-union employees are also allowed to convert overtime hours into compensatory time to be used at a later date. The maximum that can be accrued in a compensatory time bank is 40 hours. Upon leaving the City an employee can receive a cash-out of up to 40 hours of compensatory time. City Plan Comparisons Using a non-union, professional level (P) employee with 5 years of service under each of the City s 3 plans, the time off would be as follows:
10 Paid Time Off Programs Page 5 of 6 Paid Time Off (days) Naperville Tier I (Traditional) Naperville Tier I (TOP) Naperville Tier II PTO/Vacation Sick Holiday Floating Holiday Exempt Benefit Days Total Days Available Survey Results In order to gain a better understanding of the differences between City of Naperville employees, employees of other municipalities and other public sector employers (see the table below for survey participants and their most recent bond rating, as available), a survey was conducted. Inside Illinois includes the following cities Outside Illinois includes the following cities Other Public / Governments Entities Arlington Heights Aa1 Carmel, IN AA+ Indian Prairie School Dist. #204 Aurora AA Cary, NC AAA Naperville School Dist. #203 Elgin AAA Fort Collins, CO AAA DuPage County Evanston Aa1 Norman, OK AA2 Will County Schaumburg AAA Overland Park, KS AAA Skokie AAA Pasadena, CA Aa3 Wheaton AAA Wilmette AAA Winnetka AAA All entities surveyed offer a complete suite of paid time off benefits, including vacation time, sick time, personal time, floating holidays and observed holidays. One entity, Elgin, has a tiered program for sick days only. Elgin lowers their sick days by 50% (12 days to 6 days) for Tier II employees (effective March 2010). Below is a chart summarizing time off plans by the different groups of entities that have been surveyed. For each entity, we utilized a full-time, exempt employee with an average of 5 years of service.
11 Paid Time Off Programs Page 6 of 6 Average Paid Time Off (days) Naperville Tier I (Traditional) Naperville Tier I (TOP) Naperville Tier II (PTO-11) Inside IL Outside IL Other PTO/Vacation Sick Holiday Floating Holiday/Personal 3 Days Exempt Benefit Days Total Days Available Staff plans to hire a third-party to assist with further market analysis and employee input and use that information to formulate some possible alternative time-off arrangements for consideration. Staff will take this data and work with the third-party on a recommendation to City Council on expanding the available time off for Tier II employees while managing the current and future costs. RECOMMENDATION: Please forward this memorandum to the City Council via the Manager s memorandum.
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