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06-9806r RESOLUTION NO. 9806 RESOLUTION ESTABLISHING AN UPDATED PUBLIC PURPOSE EXPENDITURES POLICY WHEREAS, the City Council finds it necessary to annually review and re-establish a policy to clearly determine the public purpose for expenditures; and WHEREAS, the City Council has determined that in order to attract, recruit, retain and motivate employees and community volunteers, the City wishes to recognize hard work and service through other than monetary payment; and WHEREAS, the City Council has further determined certain expenditures for typical business costs are necessary for the efficient delivery of public service; and WHEREAS, the City Council has reviewed and discussed the public purpose expenditures as detailed in Exhibit 1. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Richfield hereby rescinds Resolution 9362, Resolution Adopting A Public Purpose Expenditure Policy, and adopts Exhibit 1, entitled "Public Purpose Expenditure Policy," establishing an updated policy. Adopted by the City Council of the City of Richfield, Minnesota this 8th day of August, 2006. M?!~a~ ATTEST: ~~-f-~ Nancy Gibbs, Ity Clerk PUBLIC PURPOSE EXPENDITURE CITY OF RICHFIELD PERSONNEL POLICY DATE: August 8,2006 SUBJECT: Public Purpose Expenditures Backaround Pursuant to provisions of the Richfield City Charter and the statutes and laws of the State of Minnesota, which permit and require the expenditure of public funds for public purposes, the City of Richfield believes it necessary and appropriate to provide assistance and guidance to the officials, employees and representatives of Richfield to aid in the determination of when public funds may be spent for a public purpose. Definition A public purpose expenditure is one which relates to the purpose for which the City of Richfield exists and the duties and responsibilities of Richfield, its elected and appointed officials, employees and other representatives. Public Purpose Guidelines A. Training and development programs for Richfield employees serve a public purpose when those training and development programs are directly related to the performance of the employees' job-related duties and are directly related to the programs/services for which the City is responsible. B. Payment of employee work-related expenses, including travel, lodging and meal expenses, serves a public purpose when those expenses are necessarily incurred by Richfield employees in connection with their actual work assignments or official duties and those expenses are directly related to the performance of the governmental functions for which Richfield has responsibility. C. Appropriate safety and health programs for Richfield employees serve a public purpose because they result in healthier and more productive employees and reduce certain costs to the City and the taxpayers of Richfield, including various costs associated with workers' compensation and disability benefit claims, insurance premiums and lost time from employee absences. D. Public expenditures for appropriate Richfield employee and volunteer recognition programs serve a public purpose because formally recognizing employees and volunteers who make significant contributions and demonstrate their commitment during the performance of their duties result in higher morale and productivity among all Richfield employees and volunteers, and therefore help the City to fulfill its responsibilities efficiently and more cost effectively. E. Public expenditures for food and refreshments associated with official Richfield City functions serve a public purpose when the provision of food or refreshments is an integral part of the function and is deemed necessary to ensure meaningful participation by the participants. F. Public expenditures for appropriate community and customer outreach and similar activities serve a public purpose when those expenditures are necessary for Richfield to ensure the efficient operation of its programs/services, promote the availability and use of City resources, and promote coordinated, cooperative planning activities among and between the public and the private sectors. Specific Proarams and Expenditures Every City of Richfield expenditure must be valid based upon the public purpose for which it is purchased. The following items are deemed to meet the Council definition of public purpose expenditures. A. Emplovee Recoanition Proarams The Richfield City Council recognizes the hard work and service performed by the employees of the City through a formal Employee Recognition Program. The City Council believes the benefits of attracting, retaining and motivating employees through an Employee Recognition Program support employee job satisfaction, which in turn impacts cooperation and productivity. The result is to provide excellent public and customer service to better serve the interests of the citizens of the community. The Employee Recognition Program is considered "additional compensation" for work performed by employees but is entirely dependent on receiving funding from year-to-year. No provisions of this policy, or its administration, shall be subject to review under the grievance or arbitration provisions of any collective bargaining agreement. The Program may include: 1. City employees completing 5, 10, 15, 20, 25, 30, and 35 years of service may receive a service award not to exceed $50 $100 in value, as determined by the City Manager. 2. Annually, in conjunction with the presentation of service awards, the City may sponsor an Employee Recognition event for City employees. 3. Annually, the City may sponsor a Volunteer Recognition Dinner(s) to promote teamwork and coordination among the City Council, Department Directors, Commission/Committees, and employees. This dinner and a token gift for invited participants and their guests also serve as de minim us compensation for the service provided by the volunteers. 4. Annually, the City may sponsor a Holiday Party for City employees. In lieu of a Holiday party, the City may sponsor an annual employee picnic event, such as Rootbeer Float Day. 5. The City supports other events that are planned and paid for by employees. Examples of such events include holiday gatherings, golf and/or bowling tournaments. 6. The City supports recognition plaques in recognition of long-time service or retirement for employees, volunteers and elected officials. The cost of the elements of the Employee Recognition Program will be included in the City of Richfield Annual Budget. This item will be approved annually by the City Council as a part of the overall budget approval process which includes a public hearing on the proposed budget. B. Emplovee Wellness and Safety Proarams The City Council recognizes the importance of employee fitness and health as it relates to the overall work and life satisfaction of the employee and the overall impact on the City's health insurance program. As such, the City Council supports an Employee Wellness Program, which has been designed to educate employees on fitness/health issues. The Employee Wellness Program is considered "additional compensation" for work performed by employees, but is entirely dependent on receiving funding from year-to- year. No provisions of this policy, or its administration, shall be subject to review under the grievance or arbitration provisions of any collective bargaining agreement. The cost of an Employee Wellness Program will be included in the City of Richfield Annual Budget. This item will be approved annually by the City Council as a part of the overall budget approval process which includes a public hearing on the proposed budget. The Employee Safety Program is funded by the Self-Insurance Fund. The City supports programs created by the Human Resources Division and the Safety Committee to promote and retain a safe work environment. Safety incentive programs such as Richfield's Safety Bingo, which provide the opportunity for cash prizes for accident/injury-free work days, is an example of such programs. Such safety incentives shall be included in the City of Richfield Annual Budget. C. Meetinq Food/Meals The City Council recognizes that situations in which City business needs to be discussed can and do occur during meal hours (i.e. luncheon meetings). In addition, there are public and employee meetings and events in which reasonable refreshments may be necessary to add to the success of the meeting and/or event and create a more productive work force environment and to be responsive to participants' time schedules. The following items are deemed to meet the Council definition of public purpose expenditures in regards to food and meals. 1. Meals and refreshments are allowed at City meetings and events that have a purpose of discussing City issues. These meetings would normally have a pre-planned agenda. 2. Meals and refreshments are allowed at employee meetings and events that have a purpose of discussing City issues or are a part of employee training. These meetings would also normally have a pre-planned agenda. These meetings could include new employee receptions to introduce new employees to existing employees, provide an orientation to the City, and promote teamwork and cooperation. This does not include routine staff meetings. 3. Meals and refreshments are allowed when they are part of a breakfast/lunch/dinner meeting for official City business when it is the only practical time to meet. Usually these meals involve meeting with City Council members, Committee/Commission members, business or civic organizations. Payment for fees relating to a special event, such as a Chamber of Commerce event, may also be allowed when approved by the City Manager and when attendance is deemed to meet the public purpose guidelines for community or customer outreach and marketing of the City. 4. Meals and refreshments may be provided during offiQial meetings of the City Council, City Council committees, advisory boards/commissions, and taskforces that have purpose of discussing City business. These meetings would normally have a pre- planned agenda. 5. Travel expenses for employees as outlined in the Richfield Travel Reimbursement Policy. 6. Meals and refreshments are allowed where employees or volunteers are participating in a City-sponsored special event, participating in an outside event as an official representative of the City, or working additional hours and where the Department Director deems appropriate as recognition of efforts above those normally required. Because emergency personnel are often called to perform for extended periods of time and duties where refreshments are important to duty performance, emergency response personnel may be provided refreshments or food when it is deemed appropriate by the City Manager or Department Director to assure the delivery of quality emergency response service. 7. No purchase of alcoholic beverages is allowed at any time. The cost of these meals or fees is included in the departments' travel/conferences line-item in the City of Richfield Annual Budget. These items are approved annually by the City Council as a part of the overall budget approval process which includes a public hearing on the proposed budget. D. Membership, Dues, and Donations The City Council has determined that the City will fund memberships and dues (individual or organization) in professional organizations and City social and community organizations when the purpose is to promote, advertise, improve or develop the City's resources and relationships and not personal interest or gain. The cost of memberships/dues is included in the departments' dues and subscriptions line-item in the City of Richfield Annual Budget. These items are approved annually by the City Council as a part of the overall budget approval process which includes a public hearing on the proposed budget. All donations must be approved by the City Council during the annual budget process and/or by City resolution. Donations provided by the City must be for programs that serve our citizens and are deemed to meet the public purpose guidelines. E. Education Reimbursement The Personnel Policy contains guidelines for a Richfield Employee Education Program (REEP). Job related advanced education meets the public purpose guidelines of this policy. The amount available for this program shall be considered annually. The cost of this program is contained in the City of Richfield Annual Budget. F. Clothina and Other Sundry Items Employees may receive T-shirts, and other sundry items of nominal value ($10.00) when these items; are made available to the general public or if these items are determined by the City Manager to be important to the successful involvement of employees in special City-sponsored or City-supported events (i.e. National Night Out, etc.). Employees may be supplied with uniforms, clothing, boots and other gear necessary for the performance of their job. The cost of these items for City-sponsored or City-supported events shall be contained in the City of Richfield Annual Budget. Conclusion The Richfield City Council has determined that the above expenditures are valid and serve a public purpose. Approved: City Manager