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Item 4E ITEM 4E CITY OF SOUTHLAKI MEMORANDUM March 30, 2016 TO: Shana K. Yelverton, City Manager FROM: Stacey Black, Director of Human Resources SUBJECT: Resolution No. 16-011 Action Requested: City Council approval of Resolution No. 16-011 amending the City of Southlake Personnel Policies and providing an effective date. Background Information: The City's current Employee Handbook contains all personnel polices approved by both the City Council and the City Manager. Many of the policies were adopted as far back as 1989 and have since become outdated. As such, staff has reviewed and revised the entire Employee Handbook to both ensure compliance with federal, state and local laws and to modernize outdated policies. The proposed draft includes many new policies. Most often these policies have been included to ensure compliance with federal, state and local laws. Examples of new policies include COBRA, Fair Labor Standards Act (FLSA), and the Whistleblower Act. Other policies have been added to document existing practices, such as the Strategic Management System, recruiting, and resignations. Finally, there were some policies that were simply missing including, attendance, reduction in force, and social medial. Section 4.14 of the City Charter requires City Council approval for all personnel policies that have financial implications. The City Manager has the authority to approve personnel policies that do not have financial implication, provided City Council is notified of all such changes. Policies with Financial Implications The proposed Employee Handbook includes twenty-one personnel policies that have financial implications, including: • Policy 406 — Reduced Work Schedule • Policy 407 — Resignations Shana K. Yelverton, City Manager ITEM 4E March 30, 2016 Page 2 • olicy 605 — Terminal Pay • Policy 606 — Interim Status Pay • Policy 607 — Certification Pay • Policy 608 — Standby / On-call Pay • Policy 609 — Inclement Weather/ Emergency Closing • Policy 702 — Bereavement Leave • Policy 703 — Holidays • Policy 704 —Vacation Leave • Policy 705 — Sick Leave • Policy 706 — Jury Duty and Court Leave • Policy 707 — Military Leave • Policy 710 —Wage Continuation Program • Policy 712 —Alternative Work Schedule • Policy 713 — Longevity Pay • Policy 714 — Tuition Reimbursement • Policy 715 — Employee Assistance Program • Policy 716 — Retirement • Policy 717 — Retiree Health Insurance Benefits • Policy 718 — Social Security / FICA All of the above policies, with the exception of four, primarily include language modernization and formatting changes. The primary provisions of the policies remain unchanged. The below policies have either been added or have been updated to include the following proposed revisions: • Policy 407 — Resignations - This is a new policy. The proposed policy provides direction to employees regarding the City's expectations about employee resignations. It clarifies that accrued leave may not be used during the employee's final two weeks of employment and provides the City with the ability to provide an employee with two weeks of pay in lieu of notice in situations where job or business needs warrant. • Policy 606 — Interim Status Pay - The Interim Status Pay policy provides employees who are assigned to a higher classification with additional compensation for the time they are performing duties of the higher classification. Shana K. Yelverton, City Manager ITEM 4E March 30, 2016 Page 3 - The current policy defines the length of an interim assignment as 30 or more days for civilian personnel, 12 consecutive hours for sworn fire personnel and 8 consecutive hours for sworn police personnel. - Section 141.033 of the Texas Local Government Code requires that police and fire personnel who perform the duties of a particular classification are entitled to the salary prescribed for that position. It appears that the best practice has changed to provide the higher classification compensation to police and fire personnel who perform the duties of a higher classification for any period of time. Therefore, the only recommended change to this policy is to provide interim pay to fire and police personnel who are placed in an interim assignment for any period of time. - It is anticipated that the policy revision may result in additional compensation to some police and fire personnel. It is expected that it will be less than $5,000 annually and can be absorbed within the existing budget. • Policy 704 —Vacation Leave - The current vacation leave policy requires employees be employed for twelve (12) months before they are eligible to use accrued vacation leave. The proposed policy reduces the waiting period to six (6) months. However, should an employee leave employment prior to their first anniversary, any accrued, but unused vacation leave is forfeited and not will not be paid to the employee in the final paycheck. This is consistent with the current policy. - There is no financial implication to this proposed change. • Policy 714 — Tuition Reimbursement - The proposed policy incorporates a two year employment commitment from employees who receive tuition reimbursement. Should an Shana K. Yelverton, City Manager ITEM 4E March 30, 2016 Page 4 employee voluntarily leave employment prior to two years following the completion of the most recent course the employee shall reimburse the City for 100% of the tuition reimbursement if the employee separates within 0 — 12 months or 50% of the tuition if the employee separates within 13 — 24 months. This is a new provision; an employment commitment was previously not required. - The proposed policy requires that all coursework must be completed at a fully accredited college, community college or university recognized as accredited by the Council for Higher Education. No accreditation requirement previously existed. - The proposed policy clarifies that tuition reimbursement is offered for undergraduate and graduate courses. It excludes doctoral studies. The current policy is silent and does not address doctoral studies. - The only financial implication from the proposed changes is the potential for reimbursement to the City from employees who do not meet the two year commitment requirement. Policies without Financial Implications In 2007, Provision 4.14 of the City Charter was amended to provide the City Manager with the authority to approve personnel policies that do not have financial implications. Prior to this change, all personnel policies were subject to City Council approval. Many of the City's current policies were adopted by City Council prior to this change and no longer require City Council approval. Therefore, with this Resolution, staff requests that City Council repeal previously adopted policies that do not have financial implications. The draft Employee Handbook contains 51 policies that may be approved by the City Manager. A complete listing of all policies and the proposed revisions are included in Attachment A. Finally, the draft handbook has been placed into a new format, which, we hope, will make navigating it easier. Enclosed you will find a printed copy of the complete current Employee Handbook and the draft Employee Handbook which includes all proposed personnel policies. In addition, in Attachment A you will find a list all of the substantive Shana K. Yelverton, City Manager ITEM 4E March 30, 2016 Page 5 changes to all policies. We have attempted to capture most of them, but it is important to note that all of the policies include changes; however, most changes were made to streamline or modernize the policy. Attachment B is a chart that cross references the proposed Employee Handbook to the current Employee Handbook. It also indicates which policies are new and which have financial implications. Attachment C takes the current Employee Handbook Table of Contents and cross references it to the proposed Employee Handbook. Financial Considerations: Based upon historical trends, it is anticipated that the change in the Interim Status Pay policy may result in some additional compensation to police and fire personnel who are temporarily assigned to higher classifications. However, it is expected that this number will be less than $5,000 annually and can be absorbed within the existing salary budget for each department. There are no other financial implications due to proposed policy revisions. Strategic Link: Performance Management and Service Delivery Citizen Input/ Board Review: N/A Legal Review: The City Attorney has reviewed the proposed revisions to the personnel policies. Alternatives: Changes as may be desired by the City Council. Deny the request and maintain current personnel policies. Supporting Documents: Attachment A: Proposed Revisions Attachment B: Proposed Employee Handbook Comparison Attachment C: Current Employee Handbook Comparison Resolution No. 16-011 Current Employee Handbook Draft Employee Handbook Staff Recommendation: City Council approval of Resolution No. 16-011 to amend the City of Southlake Personnel Policies and providing an effective date of April 15, 2016. Attachment A: Proposed Revisions Section 1 - Administration and General Guidelines • No substantial changes to existing policies. • New policies: - 102: Strategic Management System and Values - 103: Personnel Records - 104: Departmental Policies - 105: Standard Operating Procedures (SOPs) Section 2 - Federal and State Employment Laws and Regulations • No substantial changes to existing policies. • New policies: - 203: Consolidated Omnibus Budget Reconciliation Act (COBRA) - 205: Fair Credit Reporting Act - 206: Fair Labor Standards Act (FLSA) - 209: Whistleblower Act Section 3 - Applications and Initial Employment • No existing policies. New policies: - 301: Employment Applications - 302: Recruiting - 303: Pre-Employment Screening & Conditional Offers - 304: Re-Employment Section 4- Conditions of Employment • No substantial changes to existing policies. • New policies: - 403: Outside or Secondary Employment - 405: Reduction in Force - 407: Resignation - 408: Dismissal Section 5 - Employee Standards of Conduct • 504: Dress and Grooming Standards - The proposed policy has been modernized and streamlined. It includes more examples of appropriate / inappropriate dress for the various dress standards. • 505: Drug Free Workplace - The current policy defines a positive alcohol test to be one that is 0.04 or greater. The draft proposes that any alcohol found in the system results in a positive test. • 506: Drug and Alcohol Policy for DOT Employees - The current policy defines a positive alcohol test to be one that is 0.04 or greater. The proposed policy reflects that any alcohol found in system results in a positive test and is consistent with the proposed policy revisions to Policy 505- Drug Free Workplace. Page 6 Attachment A: Proposed Revisions • 507: Electronic Communication and Internet Use — The proposed policy has been modernized and outdated language and provisions have been removed. It also combines the existing Mobile Telephone Use and Technology Policy into one policy. • 509: Media Relations — The proposed policy has been updated to remove references to the "Public Information Officer" with either the Office of Communication or the designated Public Safety spokesperson. The Public Information Officer position no longer exists. • 511 : Tobacco Free Workplace — The proposed policy has been updated to prohibit the use of e-cigarettes in the workplace. • 512: Workplace Conduct — The proposed policy has removed the appeal process specific to the Workplace Conduct Policy and instead directs appeals to follow the appeal procedures outlined Policy 802— Employee Grievances and Appeals. This provides for standardization of grievances and appeals. • New policies: — 503: Attendance — 510: Social media Section 6 — Wage & Salary Administration • 606: Interim Status Pay — The proposed policy has been revised to provide higher classification compensation to police and fire personnel who perform the duties of a higher classification for any period of time. There are no other changes. • 607: Certification Pay — This is a proposed new policy of an existing program for Public Safety. It provides policy language for the application of certification pay for sworn Police and Fire personnel. • 608: Standby / On-call Pay — The proposed policy has been revised to require that departmental standby procedures are subject to approval of Director of Human Resources instead of the City Manager. • 609: Inclement Weather / Emergency Closing — The proposed policy has been updated to include emergency, non-weather related closings. It also references the Standard Operating Procedure for additional information. Section 7 — Employee Benefits • 702: Bereavement Leave — The proposed policy has been updated to require employees to indicate on their timecard the relationship of the relative. • 704: Vacation Leave — The proposed policy has changed the waiting period to use accrued vacation leave from twelve (12) months to six (6) months. If an employee seperates Page 7 Attachment A: Proposed Revisions employment, any unused vacation balance will only be paid to employees who have been employed for one year or more. • 709: Workers' Compensation - The proposed policy has been expanded to include existing reporting requirements. • 714: Tuition Reimbursement - The proposed policy has been updated to include a new two year commitment requirement, that any coursework must be completed at an accredited community college, college or university and exclude doctoral coursework from reimbursement. • New policies: - 701: General - 718: Social Security/ FICA Section 8 - Corrective Action, Appeals and Grievances • No substantial changes to existing policies. • No new policies. Section 9 - Performance Reviews • New policies: - 901: Performance Reviews - 902: Performance Improvement Plans Section 10 - Safety • 1001: Safety - Added general safety rules, added a section on safety training. Section 11 - Definitions • No substantial changes to existing definitions. Appendix • No changes to already adopted policies: - Code of Ethics and Conduct - Employee Business Code of Conduct - Travel Policy Page 8 Attachment B: Proposed Employee Handbook Comparison SECTION 1. ADMINISTRATION AND GENERAL INFORMATION Proposed Policy Current Policy Financial Implications 101 Purpose 1 . Chapter 1 : Purpose No 102 Strategic Management New No System and Values 103 Personnel Records New No 104 Departmental Policies New No 105 Standard Operating New No Procedures (SOPs) SECTION 2 FEDERAL AND STATE EMPLOYMENT LAWS AND REGULATIONS Proposed Policy Current Policy Financial Implications 201 Americans with Disabilities 25. ADA Accommodation and Return No (ADA) to Work Procedure 202 Breastfeeding Support 32. Breastfeeding Support Policy No 203 Consolidated Omnibus New No Budget Reconciliation Act (COBRA) 204 Equal Employment 1 . Chapter 1 : Purpose No Opportunity 205 Fair Credit Reporting Act New No 206 Fair Labor Standards Act New No (FLSA) 207 Family Medical Leave Act 15. FMLA Leave No (FMLA) 208 Health Insurance Portability 24. Health Insurance Portability and No and Accountability Act Accountability Act (HIPAA) Privacy Policy 209 Whistleblower Act New No SECTION 3 APPLICATIONS AND INITIAL EMPLOYMENT Proposed Policy Current Policy Financial Implications 301 Employment Applications New No 302 Recruiting New No 303 Pre-Employment Screening New No and Conditional Offers 304 Re-Employment New No Page 1 Attachment B: Proposed Employee Handbook Comparison SECTION 4 CONDITIONS OF EMPLOYMENT Proposed Policy Current Policy Financial Implications 401 Criminal Background 10. Criminal History Checks No Checks 402 Nepotism 11 . Nepotism Policy No 403 Outside or Secondary New No Employment 404 Probation 3. Chapter 3: Probation No 405 Reduction in Force New No 406 Reduced Work Schedule 26. Reduced Work Schedule Yes 407 Resignations New Yes 408 Dismissal New No SECTION 5 EMPLOYEE STANDARDS OF CONDUCT Proposed Policy Current Policy Financial Implications 501 Code of Ethics and Conduct No change, adopted individually. n/a 502 Business Code of Conduct No change, adopted individually. n/a 503 Attendance New No 504 Dress and Grooming 12. Uniform/Dress Code/Grooming No Standards 505 Drug Free Workplace 19. Drug Free Workplace No 506 Drug and Alcohol Policy for 20. Drug and Alcohol Testing for No DOT Employees DOT 507 Electronic Communication 14. Mobile Telephone Use Policy No and Internet Use 17. Technology Policy 508 Fraud 30. Employee Standards of Conduct No — Fraud 509 Media Relations 23. Media Relations Policy No 510 Social Media New No 511 Tobacco Free Workplace 13. Tobacco Use Policy No 512 Workplace Conduct 28. Workplace Conduct Policy No Section 6 WAGE AND SALARY ADMINISTRATION Proposed Policy Current Policy Financial Implications 601 Employee Classification 4. Chapter 4: Wage & Salary No and Pay Administration 602 Work Week and Pay 4. Chapter 4: Wage & Salary No Periods Administration 603 Overtime and 4. Chapter 4: Wage & Salary No Compensatory Time Administration Page 2 Attachment B: Proposed Employee Handbook Comparison Proposed Policy Current Policy Financial Implications 604 Advance Pay 4. Chapter 4: Wage & Salary No Administration 605 Terminal Pay 4. Chapter 4: Wage & Salary Yes Administration 606 Interim Status Pay 24. Interim Status Pay Yes 607 Certification Pay (not previously included in Yes handbook) 608 Standby / On-call Pay 4. Chapter 4: Wage & Salary Yes Administration 609 Inclement Weather / 6. Chapter 6: Employee Benefits Yes Emergency Closing Section 7 EMPLOYEE BENEFITS Proposed Policy Current Policy Financial Implications 701 General New No 702 Bereavement Leave 6. Chapter 6: Employee Benefits Yes 703 Holidays 6. Chapter 6: Employee Benefits Yes 704 Vacation Leave 6. Chapter 6: Employee Benefits Yes 705 Sick Leave 6. Chapter 6: Employee Benefits Yes 706 Jury Duty and Court Leave 6. Chapter 6: Employee Benefits Yes 707 Military Leave 6. Chapter 6: Employee Benefits Yes 708 Leave without Pay 6. Chapter 6: Employee Benefits No 709 Workers' Compensation 6. Chapter 6: Employee Benefits No 710 Wage Continuation Program 16. Wage Continuation Yes 711 Modified Duty 29. Modified Duty Assignments No 712 Alternative Work Schedule 31 . Alternative Work Schedule Yes 713 Longevity Pay (not previously included in Yes handbook) 714 Tuition Reimbursement 9. Tuition Reimbursement Yes 715 Employee Assistance 6. Chapter 6: Employee Benefits Yes Program 716 Retirement 4. Chapter 4: Wage & Salary Yes Administration 717 Retiree Health Insurance Ordinance #98-65 (not previously Yes Benefits included in handbook) 718 Social Security / FICA New Yes 719 Voting 6. Chapter 6: Employee Benefits No Page 3 Attachment B: Proposed Employee Handbook Comparison Section 8 CORRECTIVE ACTION, APPEALS AND GRIEVANCES Proposed Policy Current Policy Financial Implications 801 Corrective Action Process 5. Chapter 5: Disciplinary No Procedures 802 Employee Grievance and 8. Employee Grievance & Appeal No Appeals Policy Section 9 PERFORMANCE REVIEWS Proposed Policy Current Policy Financial Implications 901 Performance Reviews New No 902 Performance Improvement New No Plans Section 10 SAFETY Proposed Policy Current Policy Financial Implications 1001 Safety Responsibilities 7. Chapter 7: Safety No Section 11 DEFINITIONS Proposed Policy Current Policy Financial Implications 1100 Definitions 2. Chapter 2: Definitions No Section 11 Appendix Proposed Current Appendix Code of Ethics and Conduct Code of Ethics and Conduct Appendix Employee Business Code of Employee Business Code of Conduct Conduct Appendix Travel Policy Travel Policy Page 4 Attachment C: Current Employee Handbook Comparison ApprovalCurrent Policy . . . Replacement 1 . Chapter 1 : Purpose Resolution # 89-16 101 : Purpose 204: Equal Employment Opportunity 2. Chapter 2: Definitions Resolution # 89-16 1100:Definitions 3. Chapter 3: Probation Resolution # 89-16 404: Probation 4. Chapter 4. Wage & Salary Resolution # 89-16 601 : Employee Classification & Administration Revised: Resolution # 04- Pay 043 603: Overtime & Compensatory Time 607: Standby / On-call Pay 602: Work Week and Pay Periods 605: Terminal Pay 604: Advance Pay 716: Retirement 5. Chapter 5: Disciplinary Resolution # 89-16 801 : Corrective Action Process Procedures 6. Chapter 6: Employee Resolution # 89-16 703: Holidays Benefits Revised: Resolution # 99-56 704: Vacation Leave Revised: Resolution # 99-80 705: Sick Leave Revised: Resolution # 01- 706: Jury Duty and Court Leave 072 708: Leave without Pay Revised: Resolution # 03- 719: Voting 043 707: Military Leave Revised: Shana Yelverton, 709: Workers' Compensation Sept., 1 , 2009 609: Inclement Weather / Emergency Closing 715: Employee Assistance Program 7. Chapter 7: Safety Resolution # 89-16 1001: Safety Responsibilities 8. Employee Grievance & Shana Yelverton, February, 802: Employee Grievance and Appeal Policy 1 , 2011 Appeals 9. Tuition Reimbursement Resolution # 89-16 714: Tuition Reimbursement 10. Criminal History Checks Shana Yelverton, November 401 : Criminal Background 19, 1997 Checks 11 . 1 Nepotism Policy Resolution # 99-80 402. Nepotism 12. Uniform/Dress Resolution # 00-31 504: Dress and Grooming Code/Grooming Standards 13. Tobacco Use Policy Resolution # 00-16 511 : Tobacco Free Workplace 14. Mobile Telephone Use Shana Yelverton, December 507: Electronic Communication 3, 1998 & Internet Use 15. FMLA Leave Resolution # 00-63 207: Family Medical Leave Act Revised: January 16, 2009 (FMLA) 16. Wage Continuation Resolution # 00-72 710: Wage Continuation Program Page 5 Attachment C: Current Employee Handbook Comparison ApprovalCurrent Policy . . . Replacement 17. Technology Policy Resolution # 00-97 507. Electronic Communication & Internet Use 18. Travel Policy City Council, November 17, No change, adopted 2015 individually. 19. Drug Free Workplace Agenda Item # 5F; 08/06/91 505: Drug and Alcohol Use 20. Drug & Alcohol Testing for Resolution # 00-81 506: Drug and Alcohol Policy for DOT DOT Employees 21 . Code of Ethics and Ordinance # 635 No change, adopted Conducts Revised: June 6, 2006 individually. Revised: October 2, 2007 Revised: November 3, 2015 22. Employee Business Code of Resolution # 06-029 No change, adopted Conduct individually. 23. Media Relations Policy Resolution # 02-049 509: Media Relations 24. Interim Status Pay Policy Resolution # 03-023 606: Interim Status Pay Revised: Resolution # 07- 014 25. ADA Accommodation and Billy Campbell, July 1 , 2003 201 : Americans with Disabilities Return to Work Procedure (ADA) 26. Reduced Work Schedule Resolution # 03-038 406: Reduced Work Schedule 27. Health Insurance Portability Resolution # 04-020 208: Health Insurance and Portability and Accountability Act (HIPAA) Accountability Act (HIPAA) Privacy Policy 28. Workplace Conduct Policy Resolution # 04-071 514: Workplace Conduct Policy 29. Modified Duty Assignments Resolution # 07-014 711 : Modified Duty Policy 30. Employee Standards of Shana Yelverton, April 15, 508: Fraud Conduct — Fraud 2008 31 . Alternate Work Schedule Shana Yelverton, 712: Alternate Work Schedule September 8, 2008 32. Breastfeeding Support Shana Yelverton, 202: Breastfeeding Support Policy September 1, 2015 Policy Page 6 RESOLUTION NO. 16-011 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOUTHLAKE, TEXAS, AMENDING THE CITY OF SOUTHLAKE PERSONNEL POLICIES AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Southlake (the "City") previously adopted personnel policies; and WHEREAS, the City wishes to adopt new personnel policies that replace all previously adopted personnel policies; and WHEREAS, the City Charter provides the City Manager with the authority to prepare personnel policies, subject to the approval of City Council if the policies have financial implications, and provide notice to the City Council of all other policy revisions; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SOUTHLAKE, TEXAS, THAT: Section 1. The City of Southlake hereby approves and adopts the following policies that have financial implications, a copy of which are attached at Exhibit "A" and are incorporated into the Employee Handbook: Policy 406 — Reduced Work Schedule Policy 407 — Resignations Policy 605 — Terminal Pay Policy 606 — Interim Status Pay Policy 607 — Certification Pay Policy 608 — Standby / On-call Pay Policy 609 — Inclement Weather/ Emergency Closing Policy 702 — Bereavement Leave Policy 703 — Holidays Policy 704 — Vacation Leave Policy 705 — Sick Leave Policy 706 — Jury Duty and Court Leave Policy 707 — Military Leave Policy 710 —Wage Continuation Program Policy 712 —Alternative Work Schedule Policy 713 — Longevity Pay Policy 714 — Tuition Reimbursement Policy 715 — Employee Assistance Program Policy 716 — Retirement Policy 717 — Retiree Health Insurance Benefits Policy 718 — Social Security / FICA Page 1 Section 2. The City Council hereby acknowledges receipt of notice of all other personnel policy revisions to be contained in the revised Employee Handbook. Section 3. That this resolution is in effect upon passage and adoption by the City Council effective April 15, 2016. PASSED AND APPROVED THIS THE DAY OF 2016. Laura Hill, Mayor ATTEST: Lori Payne, City Secretary Page 2 Resolution No. 16-011 - Attachment A 406 REDUCED WORK SCHEDULE 406.01 Policy. The city recognizes that there are times when an employee may desire to reduce normal work hours of a position to a reduced work schedule for various reasons that benefit the employee and/or the city. The city may also desire to reduce the work hours of a position to avoid layoffs, to reduce operating costs, or to avoid adverse financial consequences. The employee is permitted to work a shorter workweek while maintaining some benefits and the city is allowed to adjust to changing workloads and economic conditions while retaining a valued employee. This policy is to provide a systematic and organized approach for the approval and administration of reduced work schedules. 406.02 Scope. This policy applies to all regular, non-supervisory, full-time employees. This policy does not apply to sworn police or fire personnel. 406.03 General.A reduced work schedule is a reduction in the normal workweek hours from the traditional forty (40) hour workweek to a thirty (30) hour workweek. This may be a temporary assignment or when approved in the city budget process, a permanent reduction in hours. A reduced work schedule for a position may be requested by an employee, supervisor, or department director. All requests shall take into consideration the impact on the department and city services. Requests for reduced work schedules shall be considered on a case-by-case basis and shall not be approved if doing so would adversely affect customer service or work group productivity, or is otherwise detrimental to the good order of business. A reduced work schedule shall not become effective without the City Manager's or his or her designee's written approval, and is subject to revocation at any time if it is in the city's best interest. 406.04 Compensation. 406.04.01 A non-exempt employee placed on a reduced work schedule shall be paid based on the number of hours worked. 406.04.02 An exempt employee placed on a reduced work schedule will be paid at 75% of the employee's normal salary,regardless of the number of hours actually worked,until the reduced work schedule is discontinued. 406.05 Benefits.A non-exempt employee must work and/or utilize paid leave a minimum of 30 hours per week (hours worked, vacation, compensatory, sick and/or holiday) to maintain benefits. 406.05.01 Insurance coverage and premiums will remain in effect for Reduced Work Schedule employees on the same basis as available to full-time, regular employees. 406.05.02 Vacation leave, sick leave, and holiday pay shall accrue at 75% of the normal rate as provided for in the applicable city policies governing the accrual of same. 406.06 Request for Reduced Work Schedule. 406.06.01 Request by Employee. A regular full-time employee may submit a written request to be considered for a reduced work schedule. The request shall specify the reason for the request, the estimated duration of the assignment, and the days and hours that Page 1 Resolution No. 16-011 - Attachment A the employee wishes to work. The approval of the Department Director and the City Manager or his or her designee is required. 406.06.02 Request by Supervisor or Director.A supervisor or Department Director may request a position be placed on a reduced work schedule if it is determined that the reduced schedule is necessary to reduce operating costs, avoid layoffs and/or to avoid adverse financial consequences. The request shall specify the reason for the request, the estimated duration of the assignment, and the days and hours that the employee will work. The approval of the Department Director and the City Manager or his or her designee is required. The Department Director shall notify the employee of the schedule change at least thirty (30) calendar days before the effective date. An employee who is unwilling to work the reduced schedule will be subject to dismissal. 406.07 Annual Review.The City Manager or department director may review positions in a reduced work schedule status as necessary, but at least annually during the budget process. 406.08 Reduced Work Schedule Discontinuation.A reduced work schedule may be discontinued at the request of the employee, or upon direction of the City Manager and/or the Department Director when it is determined to be in the best interest of the city that the position be returned to a regular workweek. 406.08.01 In the event the decision to terminate the reduced work schedule is not a voluntary request of the employee, the Department Director shall notify the employee in writing, at least thirty (30) calendar days before the reduced work schedule is to terminate. 406.08.02 The city may terminate employment of a reduced work schedule employee who does not return to a forty (40) hour workweek after being directed to do so. 406.09 Permanent Work Schedule Reduction. A Department Director may request, during the budget process, that a position be permanently reduced to a thirty (30) hour workweek if it is determined that the duties required of the position can be performed in a reduced workweek schedule. 406.09.01 Upon approval,an employee in a position to be permanently reduced shall be notified in writing of the change at least thirty (30) days prior to the effective date. 406.09.02 Compensation and benefits for permanent reduced work schedule employees will continue as described above. 406.09.03 Once a position has been permanently reduced, it cannot be reinstated to a full-time position without approval through the budget process. 406.10 Reclassification of Vacant Positions. This policy shall not apply to the reclassification of a vacant position from full-time to a part-time position.A request for such reclassification shall be processed as part of the budget preparation process. Page 2 Resolution No. 16-011 - Attachment A 406.11 Appeal.An employee whose reduced work schedule request is denied,is directed to work a reduced work schedule or to return to a forty (40) hour workweek schedule and does not desire to do so, may appeal the directive by following the appeal procedures set forth in Section 8, Policy 802 — Employee Grievance and Appeals. 401.12 Approval and Effective Date. This policy was approved by City Council on April 5, 2016 by Resolution No. 16-011 and is effective April 15, 2016. It supersedes all previous policies. 407 RESIGNATIONS 407.01 Notice of Resignation or Retirement. Employees are encouraged to provide a two week notice to facilitate a smooth transition out of the city. Employees will not be allowed to rescind a resignation or retirement whether given verbally or in writing once the resignation has been confirmed by the employer. Employees who wish to discuss the possibility of resigning or retiring are encouraged to do so before making a final decision. 407.02 Form of Notice.All resignations shall be confirmed in writing. Employees who verbally resign will receive a confirmation of their resignation. 407.03 Accrued Leave. The use of accrued paid leave may not be used during the last two weeks of employment. 407.04 Pay in Lieu of Notice. The city reserves the right to provide an employee with two weeks' pay in lieu of notice in situations where job or business needs warrant. Such a decision should not be perceived as reflecting negatively on the employee, given that it may be due to a variety of reasons. The Director of Human Resources shall be consulted prior to providing pay in lieu of notice. 401.12 Approval and Effective Date. This policy was approved by City Council on April 5, 2016 by Resolution No. 16-011 and is effective April 15, 2016. It supersedes all previous policies. 605 TERMINAL PAY 605.01 Terminal Pay. All employees who leave the service of the city for any reason shall receive all pay which may be due them with the following qualifications: 605.01.01 Only full-time employees who have completed tweleve (12) months of continuous employment shall be paid unused vacation time not to exceed 240 hours (360 for fire shift personnel). 605.01.02 Any indebtedness to the city which the employee may have incurred shall be deducted from the final paycheck. 605.01.03 An employee who has completed twenty(20) or more years of continuous service with the city and separates from the city for any reason except by involuntary termination or who retires from city employment under the city's retirement program with at least ten (10) or more years of continuous service with the city shall be paid for accumulated sick leave upon retirement or separation. Such payment shall not exceed an amount equivalent to 400 hours of sick accrued leave time. Page 3 Resolution No. 16-011 - Attachment A 605.02 Approval and Effective Date. This policy was approved by City Council on April 5, 2016 by Resolution No. 16-011 and is effective April 15, 2016. It supersedes all previous policies. 606 INTERIM STATUS PAY 606.01 General. The city recognizes that certain positions of significant responsibility and duties may from time to time become vacated for a variety of reasons, and that another employee may be asked to fulfill the duties of an employee serving in a higher level position for an interim period. It is also recognized that these duties are of such a nature and level of responsibility, and may last for an unknown period of time, that additional compensation is warranted for an employee asked to fulfill these interim duties. This policy is to provide a systematic and organized approach for the administration of interim assignments to a position of higher responsibility. This policy applies to all employees, including sworn police and fire personnel. 606.02 Interim Assignment. An interim assignment occurs when an employee is officially assigned to a position of higher responsibility by an approved supervisor. 606.02.01 Sworn Police and Fire Personnel. Sworn police and fire personnel who are placed in an interim assignment shall receive interim pay for time spent in the assignment. 606.02.02 Civilian Employees. Civilian employees who are placed in an assignment of at least thirty (30) consecutive calendar days shall receive interim pay for the time spent in the assignment. 606.03 Qualifications.An employee acting in an interim assignment status must be qualified to perform and must actually perform the full range of duties of the higher-level position during the interim assignment. The duties performed of the higher level position must be above and beyond the duties described in the employee's current job classification. 606.04 Supervisor Approval. An interim assignment shall not become effective without the appropriate supervisor approval as provided below. Except as provided below for sworn police and fire personnel, the interim assignment shall be approved in writing and shall stipulate the effective date and estimated duration of the interim assignment. 606.04.01 Executive Leadership Team Assignments. The City Manager, or his or her designee, may temporarily assign an employee to serve in a position on the Executive Leadership Team. A Department Director may recommend, subject to City Manager approval, an employee to serve in a Deputy Director position for an interim assignment. The interim assignment shall be approved in writing and shall stipulate the effective date, duration and compensation of the interim assignment. 606.04.02 Civilian Employee Assignments. The Department Director shall approve, in writing, all interim assignments for personnel below the level of Deputy Director, taking into consideration the need to fill the position on an interim basis. The interim assignment shall be approved in writing and shall stipulate the effective date,duration and compensation of the interim assignment. 606.04.03 Sworn Police and Fire Personnel Assignments. The Police Chief, Fire Chief, or his or Page 4 Resolution No. 16-011 - Attachment A her designee, shall approve interim assignments for sworn police and fire personnel who perform the duties of a higher classification. 606.04.04 Interim assignments shall be annotated and approved on the employee timecard. 606.05 Interim Status Pay. Interim Status pay shall be paid commencing upon completion of the required minimum time period, but shall be effective as of the beginning of the interim assignment. 606.05.01 Executive Leadership Team Assignments, The City Manager will determine the interim compensation based upon consideration of the following criteria and other criteria as may be appropriate: i. Scope and complexity of the duties being assigned; ii. Pay difference between the interim assignment and the position held by the employee being assigned to the interim position; iii. Exigent circumstances or situation that created the vacancy. 606.05.02 All other employ An employee serving in an interim assignment shall be compensated the difference between their current rate of pay and the minimum pay in the pay grade for the higher classification that results in a minimum increase of 5%. 606.06 Completion of Interim Assignment. Upon completion of the interim assignment, the employee shall return to the employee's regular job assignment and duties. The employee's compensation shall return to that employee's regular rate of pay prior to the temporary assignment. 606.06.01 In the event an interim assignment extends beyond six (6) months,the City Manager or Department Director,as appropriate,shall re-evaluate the interim status assignment and determine if it shall be renewed. If renewed or continued, subsequent reviews shall be performed at least quarterly for the duration of the assignment. 606.06.02 An interim assignment does not constitute a promotion and shall in no way be construed as a permanent assignment. 606.03 Approval and Effective Date. This policy was approved by City Council on April 5, 2016 by Resolution No. 16-011 and is effective April 15, 2016. It supersedes all previous policies. 607 CERTIFICATION PAY 607.01 Policy. Sworn Police and Fire personnel within the Departments of Public Safety may be eligible to receive additional compensation for obtaining certain qualifying certifications. The certification must be maintained in an active status in order to receive compensation. 607.02 Budget. Certification pay amounts are subject to annual budget considerations and are approved by City Council with the Annual Budget. Certification pays may be changed or eliminated at any time. Page 5 Resolution No. 16-011 - Attachment A 607.03 Notification of Certification Level. It is the responsibility of the employee to notify his or her department of current certification level and submit a copy of the certificate issued by the certifying agent. Human Resources will not initiate an employee's certification pay until the first full month following receipt of the certification documentation in Human Resources. Certification pay will not be paid retroactively more than three (3) months. 607.04 An eligible employee shall only be paid for the highest level of certification held. 608 STANDBY/ ON-CALL PAY 608.01 Policy. The city provides for after-hour service needs by allowing some departmental operations to designate certain non-exempt employees to be on-call. Employees designated to be on-call are expected to respond to departmental after-hour service needs as required by procedures established by their department. 608.02 General. After regularly scheduled working hours, on-call employees are free to pursue personal activities, but must respond to a call back within designated guidelines set by their department. Employees designated as on-call must be fit, both mentally and physically, to accomplish on-call services needed within the time frame required. An employee is considered officially scheduled and designated as on-call only when approved by the supervisor in accordance with procedures established by the department. 608.03 Department Procedures.On-call and call-back procedures shall be established for each department by the Department Director, subject to approval by the Director of Human Resources. Established procedures shall remain on file with Human Resources. 608.03 Approval and Effective Date. This policy was approved by City Council on April 5, 2016 by Resolution No. 16-011 and is effective April 15, 2016. It supersedes all previous policies. 609 INCLEMENT WEATHER/EMERGENCY CLOSING 609.01 General. In certain conditions, the City Manager may determine that the city should close due to emergency or severe weather conditions.An emergency closing will be considered when the health, safety and welfare of the public or city employees may be at risk, or conditions do not allow the conduct of normal city operations. Under some circumstances, the city may remain open but with limited essential personnel only. 609.02 Closing Procedure. Emergency closings are conducted in accordance with Standard Operating Procedure (SOP) SLK-002. 609.03 Emergency Support Staff. Emergency support staff include: i. All uniformed Police and Fire personnel; ii. Designated Public Works employees; and iii. Any other employee notified on an ad hoc basis that due to the nature of the emergency, condition or circumstances, that they are expected to report to work or remain at work. Page 6 Resolution No. 16-011 - Attachment A 609.04 Payment for Emergency Closings. 609.04.01 Emergency support staff shall be paid for actual hours worked. 609.04.02 Non-emergency staff shall receive paid leave for their normally scheduled hours during which the city is closed and they did not work.Any additional hours worked shall be compensated in accordance with FLSA. 609.04.03 Personnel who are unable to report to work when directed or when normal city operations commence, may use vacation, compensatory or unpaid leave for those hours absent. 609.04.04 Employees who are out on vacation,sick or other paid leave shall not be compensated for emergency closings. 609.05 Approval and Effective Date. This policy was approved by City Council on April 5, 2016 by Resolution No. 16-011 and is effective April 15, 2016. It supersedes all previous policies. 702 BEREAVEMENT LEAVE 702.01 Policy. The city provides regular full-time and part-time employees paid time off in the event of a death(s) of an immediate family member, for the purpose of attending the funeral. 702.02 Immediate Family. For the purpose of authorizing paid bereavement leave "family" is defined as current spouse, child, parent, grandparent, brother, or sister, by blood or marriage. 702.03 Bereavement Leave Pay. Five (5) working days are provided in the event of the death of the employee's spouse, child or step-child. Three (3) working days are provided in the event of the death of an immediate family member other than spouse, child or step-child. Employees shall notate the familial relationship on their timecard. 702.04 Additional Leave. If an employee requests more than three (3) days (five (5) days for spouse, child or step-child) of leave, any additional approved time off shall be deducted from the employee's accrued vacation or compensatory leave. If accrued vacation or compensatory leave is not available, the additional time may be approved without pay. 702.05 Approval and Effective Date. This policy was approved by City Council on April 5, 2016 by Resolution No. 16-011 and is effective April 15, 2016. It supersedes all previous policies. 703 HOLIDAYS 703.01 Eligibility. Paid holidays are extended to all regular, full-time employees. Every other employee is extended the official holiday, without pay. There is no waiting period for employees to receive holiday pay. Part-time, temporary or seasonal employees are not eligible for paid holiday leave. Holiday pay is subject to funding in the annual budget. 703.02 Official City Holidays. The following holidays will be observed by the city. New Year's Day (January 1); Page 7 Resolution No. 16-011 - Attachment A Martin Luther King,Jr. Day (third Monday in January); Good Friday (Friday before Easter); Memorial Day (last Monday in May); Independence Day (July 4); Labor Day/ September 11 (first Monday in September); Thanksgiving Day (fourth Thursday in November); Day after Thanksgiving (fourth Friday in November); Christmas Eve (December 24); and Christmas Day (December 25). 703.03 Holidays on Weekends. When an official holiday falls on a weekend, the following alternative schedule applies: i. A holiday which falls on a Saturday shall be taken on the Friday before the holiday. ii. A holiday which falls on a Sunday shall be taken on the Monday after the holiday. 703.04 Holiday Pay. 703.04.01 Regular full-time employees shall receive holiday pay equivalent to a standard eight (8) hour workday unless the employee is on a reduced work schedule as provided for in the Reduced Work Schedule policy, in which case, the Reduced Work Schedule policy applies. Eight hours of pay for regular employees is equal to 12 hours of pay for firefighters on the 24-hour shift schedule. Refer to Section 4, Policy 406—Reduced Work Schedule for more information. 703.04.02 An employee shall not receive pay for a holiday if he or she: i. Is absent without approved leave either the day before or the day following an official holiday; or ii. Is absent without approved leave on a holiday on which the employee is scheduled to work. 703.04.03 An official holiday occurring while vacation, sick or FMLA leave is being taken will be reflected as a holiday on the payroll and no deduction from the vacation or sick leave balance will be made for the holiday. 703.04.04 In the event an official city holiday conflicts with a city sponsored event, the City Manager may designate an alternate holiday for employees designated as essential personnel on the normally scheduled holiday. Page 8 Resolution No. 16-011 - Attachment A 703.04.05 Employees may request an approved absence to celebrate a religious holiday that is not a scheduled city holiday. If approved, the employee must use vacation, compensatory time, or an excused absence without pay. 703.04.06 No holiday occurring after the date of separation of employment of an employee will be included in the final paycheck. 703.04.07 Employees who designate their last day of employment on an official city holiday shall not receive holiday pay for that holiday. 703.05 Approval and Effective Date. This policy was approved by City Council on April 5, 2016 by Resolution No. 16-011 and is effective April 15, 2016. It supersedes all previous policies. 704 VACATION LEAVE 704.01 Eligibility. All regular full-time employees shall accrue vacation leave during their first year of employment; however, vacation leave may not be used until six (6) months of continuous service is completed. Vacation leave does not vest until the completion of twelve months of continuous service; therefore, vacation leave is forfeited if employment is terminated for any reason before the completion of twelve months of continuous service. 704.02 Part-time, Temporary and Seasonal Employees. Part-time, temporary and seasonal employees are not eligible for vacation leave. 704.03 Vacation Leave Accrual. Accrual rates are based on length of continuous service with the City of Southlake. Vacation leave shall not accrue during leaves of absences without pay nor shall it be advanced. Employees shall move into the next accrual bracket following the first full pay period after satisfying the required months of service. 704.03.01 Regular full-time employees. Regular full-time employees receive vacation leave at the below rates: Months of Per Period Accrual Rate Maximum Accrual Service (Annual Accrual) Allowed 0-59 months 3.08 hours (2 weeks) 240 hours 60-119 months 4.62 hours (3 weeks) 240 hours 120-239 months 7.08 hours (4 weeks, 3 days) 240 hours 240+ months 8 hours (5 weeks, 1 day) 240 hours 704.03.02 Fire Shift Personnel. Fire shift personnel who are on the 24 hours shift schedule shall receive vacation leave at the following rates: Months of Service Per Period Accrual Rate Maximum Accrual (Annual Accrual) Allowed 0-59 months 5 hours (5 shifts) 360 hours 60-119 months 7.5 hours (7.5 shifts) 360 hours Page 9 Resolution No. 16-011 - Attachment A 120-239 months 11 hours (11 shifts) 360 hours 240+ months :L 12 hours (12 shifts) 360 hours 704.04 Maximum Accrual Allowed. Employees shall not be permitted to accrue more than the specified maximum accrual rate of vacation leave at any time. Vacation leave shall cease to accrue when a regular employee's vacation leave balance reaches the maximum. 704.05 Scheduling Vacation.Employees shall schedule vacation in advance with the employee's supervisor or Department Director,who shall give due consideration of the employee's needs and to the ability of the remaining employees to perform all essential tasks of the department while the employee is on vacation. Vacation requests by Department Directors are subject to the approval of the City Manager, or his or her designee. Vacations shall only be scheduled when workload permits; however, every reasonable effort shall be made to accommodate individual requests. Employees have the responsibility to assure that the vacation is requested within a reasonable amount of time and confirm they will have adequate leave accruals to cover the requested time off. 704.06 Holidays during Vacation. Official holidays occurring during an employee's vacation shall be paid as holiday pay and not considered as vacation leave. 704.07 Vacation Leave during Disciplinary Suspension.An employee on disciplinary suspension forfeits all claims to use of vacation leave for the duration of the disciplinary suspension. In no case shall vacation time be granted an employee during the course of a disciplinary suspension as a means to supplement pay lost as a result of the disciplinary suspension. 704.08 Vacation Payout upon Termination of Employment. Upon termination of service, a regular employee who has completed twelve (12) months of continuous employment shall be paid for any unused vacation time, not to exceed the established maximum rate of 240 hours (360 hours for fire shift personnel). 704.09 Approval and Effective Date. This policy was approved by City Council on April 5, 2016 by Resolution No. 16-011 and is effective April 15, 2016. It supersedes all previous policies. 705 SICK LEAVE 705.01 General. The intent of sick leave is to prevent a loss of income to employees who are absent from work due to an illness or injury that is not job related. 705.02 Eligibility. Regular, full-time employees are eligible to accrue and use sick leave. Probationary employees may use accrued sick leave from the first day of employment with supervisor's approval. Sick leave shall not be advanced. 705.03 Part-time, Temporary and Seasonal Employees. Part-time, temporary and seasonal employees are not eligible for sick leave. 705.04 Sick Leave Accrual. Sick leave shall not accrue during leaves of absences without pay nor shall it be advanced. Sick leave cannot be transferred from one employee to another. 705.04.01 Regular full-time employees. Regular full-time employees shall accrue sick leave at Page 10 Resolution No. 16-011 - Attachment A the rate of 3.08 hours per pay period (80 hours per year). 705.04.02 Fire Shift Personnel. Fire shift personnel who are on a 24 hour shift schedule shall accrue sick leave at the rate of 7.5 hours per pay period (7.5 shifts per year). 705.05 Maximum Accrual Allowed.All employees shall accrue sick leave up to a maximum of 720 hours. Sick leave accruals shall cease when an employee's sick leave balance reaches 720 hours. 705.06 Holidays during Sick Leave. Official holidays occurring while an employee absent from work due to an illness or injury that is not job related shall be paid as holiday pay and not considered as sick leave. 705.07 Permitted Sick Leave Uses. Sick leave may be allowed in case of doctor appointments, personal illness, physical incapacity of an employee, or when it is necessary to care for a family member residing in the employee's household who is ill or incapacitated. Sick leave shall also be used for FMLA qualifying events. 705.07.01 Employees shall not be entitled to sick leave when absent from work due to illness or injury resulting from employment with another employer. 705.08 Use of Other Paid Leave.When an employee's accumulated sick leave has been exhausted, accrued vacation leave or compensatory time may be used upon request of the employee and with approval of the supervisor or Department Director. 705.09 Sick Leave Notice. Whenever possible, employees shall report and provide notice in accordance with Section S, Policy 503 —Attendance. Failure to give notice may result in the employee being declared absent without leave and subject to corrective action. 705.10 Certification from Medical Provider.An employee may be required to furnish his or her supervisor or Department Director with a statement from an attending licensed physician when: i. There is question as to the merits of an employee's claim that his or her absence was due to illness or injury of the employee or of a family member residing in the employee's household; ii. The employee's safety or ability to work is in question; iii. There is a question of sick leave abuse; iv. The safety or efficiency of the work unit is in question; or V. The employee has been absent from work for three (3) consecutive work days or longer. 705.11 Fit for duty examination. An employee who has been absent because of illness or injury may be required to submit to a physical examination by a licensed physician selected by the city prior to returning to work. In such cases the employee may return to work upon certification by the examining physician that the employee is physically or mentally fit to return to work, or if the employee is certified fit for limited or light duty, but not his or her regular duty, the employee may, at the discretion of the city, be required to report for light or limited duty. Refer to Section 7, Policy 711 —Modified Duty for additional information. Page 11 Resolution No. 16-011 - Attachment A 705.12 Return to Work. An employee who is released by an examining physician to return to regular or light duty and refuses to report for work or perform his or her assigned duties is subject to corrective action, up to and including termination. 705.13 Sick Payout upon Termination of Employment. Employees who are separated from city employment for any reason shall not be entitled to receive pay for accumulated sick leave, except that,an employee will be granted,upon retirement or separation, a lump sum payment of sick leave remaining to his or her credit in any amount that does not exceed four hundred (400) hours when he or she: L Retires from city employment under the city sponsored program and is immediately eligible to receive retirement payments; and has at least ten (10) years of continuous employment with the City of Southlake; or ii. Separates from employment for any reason except for involuntary termination,with twenty (20) or more years of continuous full-time service with the city. 705.14 Approval and Effective Date. This policy was approved by City Council on April 5, 2016 by Resolution No. 16-011 and is effective April 15, 2016. It supersedes all previous policies. 706 JURY DUTY AND COURT LEAVE 706.01 General. Employees shall be granted court leave with pay when summoned for jury duty or when appearing as a witness on behalf of the city or as a consequence of his or her official city duties. It is expected that employees will work their normal working hours during any time that they are not required to serve. 706.02 Notification. Employees shall notify their supervisor upon receiving a summons for which court leave is requested, and shall submit appropriate documentation verifying the nature and duration of absence in order to receive court leave with pay. 706.03 All fees paid and expenses reimbursed by the court may be retained by the employee,provided that the city did not furnish travel, meals, lodging or miscellaneous expenses and that the employee is not appearing as a witness on behalf of the city or is appearing as a consequence of his or her official city duties. If the city furnished travel,meals,lodging or miscellaneous expenses,the employee shall submit any fees paid or expenses reimbursed by the court to the city. 706.04 Approval and Effective Date. This policy was approved by City Council on April 5, 2016 by Resolution No. 16-011 and is effective April 15, 2016. It supersedes all previous policies. 707 MILITARY LEAVE 707.01 General. The city complies with all federal and state laws relating to employees in reserve or active military status and does not discriminate against employees who serve in the military. The city supports its employees and their service in federal and state military units and provides them with a number of military leave benefits. 707.02 Eligibility. Employees who serve in the uniformed services in a voluntary or involuntary basis, Page 12 Resolution No. 16-011 - Attachment A including active duty, active duty for training,initial active duty for training, inactive duty training, and full-time National Guard duty. 707.03 Military Training Leave. 707.03.01 Eligibility.A regular employee, who is a member of the Texas or National Guard or Reserves of the United States Armed Forces shall,upon notification to the department director and submission of appropriate documentation, be granted leave for a period required to perform active duty for training. Temporary employees will be given authorized leave without pay for this purpose. 707.03.02 Definition. Active duty for training is defined as engaging in short periods of authorized military training such as cruises, training schools, weekly or weekend drills, and other similar activities. 707.03.03 Length of Leave. In accordance with §437.202,Texas Government Code, a regular employee engaged in authorized military training or duties will receive pay and accrue benefits as if the employee were on the job, for up to three calendar weeks in any one year. 707.03.04 Leave in Excess of 15 days.An employee eligible for military leave who is ordered or authorized to participate in training or other duty for more than 15 work days in one calendar year will be placed on leave without pay for any time in excess of 15 work days. The employee may choose to use accrued vacation or compensatory time in lieu of leave without pay. 707.03.05 Notice to Department Director.An employee shall give notice to his or her supervisor within 72 hours of receiving written or verbal military orders regarding dates for military training leave.Annual or quarterly training schedules should be given to the department director as the schedules become available to the employee. 707.03.06 Rescheduled Work Days.An employee who participates in weekend military training that occurs on a scheduled workday may reschedule a workday rather than have the absence charged to military leave,if the employee reschedules the workday within the same work period. 707.04 Active Duty Military Leave. 707.04.01 Eligibility.A regular employee, who leaves a position with the city for the purpose of entering any branch of the United States Armed Forces for extended active duty,shall be placed in military active duty status and granted a leave of absence. The employee should give the department director advance notice of the employee's intent and, for reemployment purposes, submit a copy of the orders for inclusion in the employee's personnel record. 707.04.02 Length of Active Dut. In accordance with § 4312, Title 38, United States Code, an employee may serve a total of five (5) years on active duty in the armed forces, (six (6) years for Navy Nuclear Program) and still be eligible for reemployment. An Page 13 Resolution No. 16-011 - Attachment A employee's right to re-employment is not protected for periods of military active duty longer than five (5) years (six (6) years for Navy Nuclear Program) whose initial enlistment period is six years. 707.04.03 Re-employment. A full-time employee who returns from active duty in the armed forces of the United States is entitled to reemployment in the same position held upon entrance to active duty or in a position of comparable status and pay, if the employee: i. Is physically and mentally qualified to perform the duties of the position; ii. Was discharged, separated, or released from military active duty under honorable or general conditions; iii. Has not been on military active duty leave for more than five (5) years (six (6) years for Navy Nuclear Program); and iv. Makes a written application for reappointment after discharge, separation, or release from military active duty and presents evidence of the discharge, separation, or release from military active duty: a. Less than 31 days Active Duty: The employee must report to work at the next regular scheduled work period after a reasonable time to return home safely and an 8-hour rest period. b. Between 30 to 181 days Active Duty: The employee must submit a written application within 14 days of release of service. C. More than 181 days Active Duty:The employee must submit a written application within 90 days of release of service. 707.04.04 Credit for Military Service. A regular employee with the city upon reemployment from military active duty will be allowed full credit for time spent in the military service for the purpose of computing seniority, vacation and sick leave, and service longevity. In addition, upon re-employment, the employee will be credited with sick and vacation leave accruals not accrued during his or her active military duty leave. 707.04.05 Military Partial Pay and Benefits.A regular employee called to active duty in a reserve component of the armed forces shall be granted leave and employee benefits in the following manner: i. Military Partial Pad Subject to funding availability, an employee shall receive military partial pay for up to six (6) months beginning the first day on active military duty, only if the total monthly military salary is less than the total monthly city salary. If the total monthly military salary is greater than the employee's total monthly city salary, the employee may elect to use paid leave as described in section 707.04.05(ii) below. Otherwise, military partial pay shall be calculated as the difference between the employee's total monthly Page 14 Resolution No. 16-011 - Attachment A salary from the city at the time the employee was called to active duty and the employee's total monthly military salary during the first six (6) months of active military duty. It is the responsibility of the employee to request military partial pay and to provide appropriate documentation. At the end of the first six (6) months, the City Manager may, for good cause, at his or her discretion extend the military partial pay period for an additional six (6) months. The employee must inform his or her supervisor of any changes in the employee's military pay while receiving military partial pay from the city. ii. Use of Other Paid Leave. At the end the military partial pay period, or if the employee is not eligible for military partial pay, the employee may request in writing to use any accrued paid military training leave, vacation or compensatory time leave balances. If the employee elects to use these leave balances, the leave must be taken in amounts consistent with the employee's regular work schedule with the city. For example,if the employee was regularly scheduled to work forty (40) hours per week for the city, the leave must be used at a rate of forty (40) hours per week. iii. Insurance Benefits. The city will continue to pay its portion of the employee's insurance benefits paid prior to the employee beginning active military duty, with the employee continuing to be financially responsible for the employee's portion of the premium for the selected coverage. Payment of insurance benefits will continue in this manner during the six (6) month military partial pay period, and may be continued an additional six (6) months if the military partial pay period is extended by the City Manager for an additional six (6) months. If the employee elects to use other accumulated paid leave immediately after the six (6) month partial pay period expires, insurance benefits will continue until all available paid leave has been exhausted. Upon exhaustion of paid leave,the employee may then elect to continue health insurance coverage through COBRA coverage in compliance with the law. iv. Longevity Pad The employee shall be eligible to receive longevity pay in accordance with Section 713—Longevity Pay while in an active duty status. 707.05 Approval and Effective Date. This policy was approved by City Council on April 5, 2016 by Resolution No. 16-011 and is effective April 15, 2016. It supersedes all previous policies. 710 WAGE CONTINUATION PROGRAM 710.01 General. The intent of the Wage Continuation Program is to prevent a loss of income to employees who sustain an injury in the course and scope of employment for a limited period of time. Subject to the provisions outlined below, an employee who sustains an on the job injury and is eligible for Workers' Compensation income benefits shall also be eligible for wage continuation benefits, separate and distinct from and in addition to Workers' Compensation payments. Page 15 Resolution No. 16-011 - Attachment A 710.02 Definitions. 710.02.01 First Report of Injury.A report that provides information on the employee claimant, employer, insurance carrier and medical practitioner necessary to begin the claims process. 710.02.02 Injury Damage or harm to the physical structure ofthe body or apart thereof,including any subsequent aggravation or re-injury that occurs while the employee is acting in the course and scope of the employee's employment, and for which compensation is payable under the Texas Workers' Compensation Act and is approved for payment by the City's workers' compensation insurance carrier.An "injury" shall not include any illness, disease, or infection that is not directly caused by the employee's performance on the job. 710.02.03 Subrogation Rights. To recover benefits paid to the employee that is received by the employee for injuries incurred as the result of the negligence of a third party. 710.02.04 Temporary Income Benefits. Benefits paid after an initial waiting period by the workers' compensation insurance carrier that equal approximately 70% of the difference between the employee average weekly wage and the employee's weekly wage after the injury, up to a defined maximum amount. 710.02.05 Wage Continuation. A city benefit designed to provide an employee with the employee's approximate normal "take-home" pay for a specified period of time while unable to work due to occupational injury or disease. 710.03 Statutory Benefits.An employee who sustains an injury at work may be eligible to receive benefits prescribed by the Texas Workers' Compensation Act. These benefits include income benefits, medical benefits as reasonably required to cure and relieve the effects of the injury or occupational diseases, and/or death benefits. 710.03.01 Calculation of Benefits. State law currently provides that an employee will be eligible for weekly indemnity payments beginning on the eighth calendar day of lost time following an occupational injury. Weekly indemnity payments for compensable injuries are temporary benefits,which will continue until the doctor certifies that the employee has received maximum medical improvement.Weekly indemnity payments for compensable injuries are made in accordance with state law. 710.03.02 Benefits Waiting Period. Compensation benefits are subject to qualifications and a seven (7) calendar day waiting period. After fourteen (14) calendar days of lost time, and subject to qualifications, the seven-day (7) waiting period will be paid retroactively. 710.04 Wage Continuation Program. The wage continuation program provides additional income protection for employees who are injured on the job. 710.04.01 StartTime for Wage Continuation Benefits.As workers'compensation benefits provide nothing to an employee during the first seven (7) calendar days, wage continuation Page 16 Resolution No. 16-011 - Attachment A will provide the employee with his or her regular pay for that period. Should an employee miss fourteen (14) or more calendar days due to occupational injury and receive payment for the first seven (7) days, the city will recoup the amount of this payment through payroll deduction. 710.04.02 Maximum Time for Wage Continuation Benefits. Wage continuation benefits shall automatically terminate at the expiration of ninety (90) calendar days from the date the employee is first unable to work. In special cases deemed meritorious by the City Manager, wage continuation benefits may be continued for up to an additional 30 calendar days. In no event will wage continuation benefits extend past 120 calendar days for any injury, including any later aggravation, relapse, or re-injury. Upon exhaustion of wage continuation benefits, refer to additional benefits described herein. 710.04.03 Use of Accrued Leave. Once wage continuation benefits have been exhausted, the employee shall use any accrued vacation and sick leave to supplement Income Benefits to provide the employee with the equivalent of their "take-home pay", until the employee is released for full-time or restricted duty. The employee may use any accrued compensatory leave. After all available paid vacation,sick and compensatory leave has been exhausted, the employee shall receive only the worker's compensation income benefits until he or she is released for regular or restricted duty. 710.05 Qualifications to Receive Wage Continuation Benefits. 710.05.01 Reporting On-the-Job Injury. Any employee who sustains any on-the-job injury, however minor, and who is physically able, shall report the injury immediately as the injury is noticed or by the end of the work shift to the employee's immediate supervisor and receive such medical treatment as may be necessary. If the injured employee is unable to physically report his or her injury,it is the responsibility of their immediate supervisor to complete the First Report of Injury report as soon after the injury as possible. The First Report of Injury must be completed and submitted to Human Resources within three (3) calendar days for processing. 710.05.02 Full-time Employees. Full-time employees who are injured in the course and scope of their employment with the city are eligible to participate in the Wage Continuation Program. 710.05.03 Temporary, Seasonal and Part-time Employees. Temporary, seasonal and part-time employees are eligible for Wage Continuation Benefits for the first seven (7) days of lost time in which Income Benefits are not paid. They are eligible for Worker's Compensation payments. 710.05.04 Income Benefits. An employee must be currently receiving Income Benefits from the city's workers' compensation insurance provider to be eligible for wage continuation. 710.05.05 Wage Continuation Benefits after Notice of Retirement or Resignation.An employee who is injured after giving notice of retirement or resignation or after receiving notice that the employee is to be laid off or discharged shall not receive and shall not be Page 17 Resolution No. 16-011 - Attachment A eligible for wage continuation benefits beyond the date the retirement, discharge, resignation, or layoff is to be effective. 710.05.06 Restricted Duty.An employee who is injured must accept restricted duty assignments if cleared and authorized by the employee's attending physician. Restricted duty assignments are given to the injured employee ifavailable.The duties will accommodate the injury of the employee to prevent further irritation of the injury. Refer to Section 7 Policy 711 —Modified Duty for more information. 710.06 Return to Work Release.Before reporting back to work,an employee shall provide a written release to Human Resources from the attending physician. The release should indicate the employee's fitness to return to duty, stipulate the type of duty permitted, specify any physical restrictions, and the date of the employee's release from medical care. Human Resources shall notify the employee's supervisor of the employee's ability to return to work.An employee shall not be permitted to return to work until cleared by Human Resources to do so. Wage continuation benefits shall end on the date the employee is released to return to work. 710.07 Subrogation of City Rights. The city has subrogation rights granted by law or contract for other benefits, including worker's compensation. Therefore, the city shall be subrogated to the rights of the injured employee or the employee's beneficiary as a third party to the extent of the injured employee's wage continuation benefit payments paid to the employee under this policy. 710.08 Ineligibility and Wage Continuation Benefit Termination.An employee shall forfeit all rights to initial and/or further wage continuation benefits if the employee: L Fails or refuses to comply with, follow, disregard, or violate the treating physician's instructions regarding treatment and/or rehabilitation of the employee's injury; ii. Refuses to perform restricted, partial, or part-time duty when offered by the City of Southlake and which has been authorized by the treating physician; iii. Refuses to accept or perform a different job with the city when offered by the City of Southlake and which has been authorized by the treating physician; iv. Falsifies or misrepresents the employee's physical condition or capacity; V. Refuses to return to duty on the workday they have been released by the treating physician; vi. Fails to submit the Texas Workers'Compensation Work Status Report to Human Resources each time the employee sees a doctor for consultation or treatment; vii. Has been injured as a result of the employee's blatant disregard for customary and established safety policies, procedures, or instructions as determined by the employee's Department Director or City Manager as a result of an investigation into the facts; viii. Is found to be working, either part-time or full-time and either for pay or as a volunteer or otherwise, for or on behalf of himself or herself or any other person, firm or corporation, or any other person, firm or corporation, or any other employer; Page 18 Resolution No. 16-011 - Attachment A ix. Retires, dies, resigns, or is discharged for any reason while receiving wage continuation benefits; X. Is injured as the result of the employee's violation of any Federal,State or local law,ordinance or statute; xi. Workers' Compensation Temporary Income Benefits terminate; xii. fails to keep medical appointments or refuses to submit to an examination or to such diagnostic test,x-rays,surgical procedures,or other procedures as a physician or psychologist prescribes or recommends as medically necessary to identify, diagnose, treat, or cure the employee's injured condition; xiii. Is injured: a. While engaged in horseplay; b. While intoxicated by alcohol, controlled substances, glue, dangerous drugs, aerosol paint; or similar substances; C. In willful efforts by employee to injure self; d. Through an act of God (tornado, flood, etc.), unless employment leads to more exposure to risk than the general public; e. Through voluntary participation in off-duty recreational or social activities; or f While participating in activities that would be detrimental to recovery or refusing to participate in activities that will aid in healing. 710.09 Sick Leave/Vacation Accrual.Sick leave and vacation benefits will continue to accrue at the normal rate for an employee who is receiving wage continuation benefits for a maximum of 120 days.After 120 days of leave, an employee will discontinue accruing vacation and sick leave. 710.10 Coordination with Long-Term Disability (LTD). If an employee's workers' compensation leave fulfills the waiting period for LTD benefits, then the employee may apply for LTD benefits. LTD benefits will coordinate with the worker's compensation benefits, and the Wage Continuation program. At no time will the employee's total compensation exceed the employee's salary prior to the work-related injury. 710.11 Approval and Effective Date. This policy was approved by City Council on April 5, 2016 by Resolution No. 16-011 and is effective April 15, 2016. It supersedes all previous policies. 712 ALTERNATE WORK SCHEDULE 712.01 General. In order to maintain a high level of responsiveness to the City of Southlake and its citizens, it is important that employees follow established work hours, avoid tardiness and unauthorized absences, and follow reporting requirements. Page 19 Resolution No. 16-011 - Attachment A The city reserves the right to establish official work hours for any position to ensure accomplishment of the city's mission. Where operational demands allow, the city encourages alternate work schedules to reduce energy consumption and allow employees greater flexibility in balancing work and personal needs. 712.02 Eligibility.This policy applies to all regular, full-time employees of the city,except where otherwise noted. 712.03 Alternate Work Schedules. 712.03.01 Compressed Work Week. Subject to operational requirements, regular full-time employees may be permitted to work an alternate schedule that allows the employee to work four (4) 10-hour workdays per work week in lieu of the traditional five 8-hour workdays. This section is not applicable to sworn fire and police personnel. Work schedules for sworn personnel may be modified by the Department Director or his designee, in accordance with the City of Southlake Personnel Policies and the Departments of Public Safety General Orders. 712.03.02 Requests for Alternate Work Schedule.A request for an alternate work schedule must be submitted whenever a significant change in a work schedule is requested by an employee; however, an employee may not request significant changes to an approved alternate work schedule more than once every ninety (90) days. An employee may voluntarily terminate participation in an alternate work schedule at any time. 712.03.03 Alternate Work Schedule Approval. Minor changes in an employee's schedule, such as changes in employee arrival and departure times, are not considered significant changes and may be approved by a supervisor as needed. The Department Director has final approval of alternate work schedules, including desired flex days off. No alternate work schedule shall be approved that has the potential to unduly increase the city's overtime pay liability. 712.03.04 Alternate Work Schedule Modification and Cancellation. Daily and weekly work schedules may be modified or canceled at the city's discretion to meet changing operational needs. Employees may be required to depart from the approved alternate work schedule as necessary to work additional hours, attend training, or for other business purposes as determined by the city. The City Manager or Department Director may cancel or suspend an employee's alternative work schedule privileges at any time, for any reason. Page 20 Resolution No. 16-011 - Attachment A 712.03.05 Holidays. Regular full time employees scheduled to work on a city holiday shall receive holiday pay equivalent to eight (8) hours, regardless of the number of hours that the employee may have been scheduled to work. Compressed work week schedules will be suspended during work weeks that include an official city holiday. Employees will work eight (8) hour days during holiday weeks unless otherwise approved for leave. 712.04 Telecommuting. Telecommuting is a flexible work arrangement that allows an employee to work at home or at another satellite location (which is linked, usually electronically, to a central office) during some portion of the workweek. Telecommuting is best suited for jobs that require independent work, little face-to-face interaction, concentration, a measurable work product, and output-based (instead of time-based) monitoring. 712.05 Approval and Effective Date. This policy was approved by City Council on April 5, 2016 by Resolution No. 16-011 and is effective April 15, 2016. It supersedes all previous policies. 713 LONGEVITY PAY 713.01 General. The city awards longevity pay to all full-time employees who meet the guidelines outlined below. Longevity pay is to acknowledge and reward long service of employees. 713.02 Eligibility. Regular full-time employees who have been employed with the city for twelve (12) consecutive months as of December 31 each year are eligible to receive longevity pay. Employees must be employed by the city at the time longevity pay is awarded to be eligible. 713.03 Conversion from Temporary, Seasonal, or Part-time Status to Regular Full-time Status. An employee who began his or her employment with the city as a temporary, seasonal or part-time employee but is currently in a regular full-time position, the longevity calculation shall be based on the date the employee moved into a regular, full-time position. 713.04 Calculation and Payment of Longevity Pay. $4.00 per month will be paid to each eligible employee for each full month employed through December 31 each year. Longevity pay will be paid in the first paycheck in December, unless otherwise authorized by the City Manager. Time worked for the city that is not consecutive will not be included in the calculation. 713.04.01 Example: Dan started working for the city on February 10, 2004. On his first paycheck in December 2006 he will receive longevity pay in the amount of$136.00 (10 months in 2004 - March to December - 12 months in 2005 and 12 months in 2006 equal to 34 months. 34 months X$4 = $136). 713.05 Retirement. Longevity pay will be extended on a pro-rated basis to employees who retire from city employment under the city sponsored program and is immediately eligible to receive retirement payments and is otherwise eligible for longevity pay, but retire prior to the annual payment of the benefit. 713.06 Maximum Payment. The maximum amount of longevity payment shall not exceed $1,200 or three hundred (300) months (25 years x 12 months) of service. Page 21 Resolution No. 16-011 - Attachment A 713.07 Approval and Effective Date. This policy was approved by City Council on April 5, 2016 by Resolution No. 16-011 and is effective April 15, 2016. It supersedes all previous policies. 714 TUITION REIMBURSEMENT 714.01 General. The Tuition Reimbursement Program provides an opportunity and an incentive for employees to increase their individual level of education and expertise in their related job duties, thereby enhancing their job skills and degree of professionalism and subsequently improving the ability for staff to provide continued quality service to the community. 714.02 Eligibility. Regular full-time employees who have completed one year of service with the City of Southlake shall be eligible to apply for tuition reimbursement. Tuition reimbursement is offered to employees for both undergraduate and graduate courses (excluding doctoral studies) that are directly related to their job and/or in the best interest of the city. Individual courses outside of the degree plan, but which are directly related to the employee's current position with the city,may be considered for tuition reimbursement on a case-by-case basis, with the final determination of approval made by the department director and Director of Human Resources. 714.03 Eligible Colleges and Universities.All coursework must be completed at a fully accredited college, community college or university recognized as accredited by the Council for Higher Education Accreditation (wwwchea.org). 714.04 Reimbursement Rate. The average cost for in-state tuition at a Texas public college or university shall be established each year as part of the normal budget process and shall be based on state schools within in the region as determined by Human Resources.The employee shall be responsible for any difference in tuition cost between the average rate and the actual tuition cost. 714.05 Available Funding. Participation in the Tuition Reimbursement Program is subject to availability of funds in the city's Annual Operating Budget and prior approval. The Tuition Reimbursement program may be suspended at any time with or without notice by the City Manager or City Council. 714.06 Continued Employment. In exchange for the city's commitment toward tuition reimbursement, the city requires the participating employee's commitment of continued employment. An employee seeking tuition reimbursement to attend an institution of higher learning shall commit to continued employment of two (2) years following the completion of the most recent course for which reimbursement was received by the employee. An employee who voluntarily leaves employment with the city before two (2) years shall reimburse the city for tuition reimbursement received. Reimbursement to the city shall be based on the following schedule: L Employment separation 0-12 months following completion of the most recent course for which reimbursement was received: 100% of tuition reimbursement received during the previous two (2) years shall be repaid to the city. Page 22 Resolution No. 16-011 - Attachment A ii. Employment separation 13-24 months following completion of the most recent course for which reimbursement was received: 50% of tuition reimbursement received during the previous two (2) years shall be repaid to the city. An employee who involuntarily leaves employment shall not be required to reimburse any monies received. 714.07 Reimbursement Levels. Tuition, lab fees and other mandatory fees shall be considered for reimbursement. Reimbursement shall be based on the employee's official school receipts,transcript, or report card and shall be paid as follows: i. 100% of the average cost for tuition, laboratory, and registration fees for in-state tuition at a Texas public college or university and 50% of the cost of required textbooks for receiving a grade of"C" or higher. ii. No reimbursement shall be paid for a grade lower than a "C." Supplies, parking, meals, extra-curricular activities, graduation fees, and any course where credit shall be given for work experience or for work history shall not be reimbursed. Similarly, costs for testing or placing out of actual course work shall not be reimbursed. The city offers tuition reimbursement assistance under the guidelines of Section 127 of the Internal Revenue Code (IRC 127) which covers employer-provided educational programs. Under Section 127, an employer may exclude educational expenses from an employee's gross income up to a maximum amount in a calendar year.The city will issue the appropriate tax documents to employees participating in the Tuition Reimbursement Program. 714.08 Application Procedure. The employee shall apply for Tuition Reimbursement during the normal budget process for the next fiscal year. The employee shall complete the appropriate tuition reimbursement request forms and receive approval prior to course registration. Upon approval and budget funding, the employee shall pay the initial tuition and related costs in advance and shall be granted reimbursement only after the grades have been received. After completion of the course, the employee shall submit the appropriate Tuition Reimbursement Request form, receipts, and grade documentation to Human Resources for final approval. 714.09 Termination Prior to Course Completion. Employees who cease employment with the city prior to completion of the course are ineligible for the tuition reimbursement benefit. 714.10 Course and Study Time.Time expended by an employee involved in a course approved under this plan shall not be considered as "on-duty"time. Expenses related to travel, meals, or lodging shall be the cost of the employee and shall not be considered for reimbursement under this plan. 714.11 City Sponsored Training. This plan is not related to courses, seminars, conferences, and similar training sessions that are required, offered, or paid by the city. It is also not related to certification programs or classes. 714.12 Approval and Effective Date. This policy was approved by City Council on April 5, 2016 by Resolution No. 16-011 and is effective April 15, 2016. It supersedes all previous policies. Page 23 Resolution No. 16-011 - Attachment A 715 EMPLOYEE ASSISTANCE PROGRAM 715.01 The City Manager may,if approved by the City Council,administer an employee assistance program to provide aid to employees in resolving problems that may affect job performance, attendance,and employee morale. Some of the broad categories that may be covered by this program are related to personal, family, marriage, legal, financial, and drug and alcoholism problems. Contact Human Resources for more information regarding this program. 716.02 Approval and Effective Date. This policy was approved by City Council on April 5, 2016 by Resolution No. 16-011 and is effective April 15, 2016. It supersedes all previous policies. 716 RETIREMENT 716.01 Texas Municipal Retirement System (TMRS). The city participates in the Texas Municipal Retirement System, which provides retirement benefits to eligible employees. All amendments and additions to TMRS enacted by the City Council are continued in full force and effect, and are incorporated herein by reference. Employees are provided retirement benefits upon meeting TMRS eligibility and plan requirements. Specific TMRS plan requirements and provisions can be obtained from Human Resources or TMRS. The purpose of the TMRS is to provide a dependable plan for the retirement of full-time regular employees of Texas municipalities. 716.01.01 Participation.Participation of all eligible full-time regular employees and eligible part- time regular employees is a condition of employment. Part-time employee eligibility will be determined by the Director of Human Resources and the requirements established by TMRS. 716.01.02 Retirement Contributions. Employees covered under TMRS are required to contribute 7% of the employee's pay to be deposited into the member's account. The city currently contributes matching funds pursuant to actuarial assumptions. 716.01.03 Retirement Eligibility. TMRS offers employees several options for retirement providing he or she meets the following requirements: i. Employees must be at least 60 years of age and have at least five (5) years of service credit with the system; or ii. Employees may be any age and have twenty (20) years of service credit with the TMRS system. iii. Should the employee have five (5) or more years of TMRS service credit and die before retirement, the employee's beneficiary will be provided information regarding options for retirement benefits. 716.01.04 Retirement Options. There are several retirement plan options available to retiring employees that are explained in detail in the TMRS handbook available in Human Resources or wwwtmrs.org. Page 24 Resolution No. 16-011 - Attachment A 716.02 Deferred Compensation. Consistent with federal or state laws, the city may offer employees the option of deferred compensation plans. The City Manager or his or her designee shall administer any deferred compensation programs and may promulgate any necessary rules and regulations. 716.03 Part-time Alternative Retirement System (PARS). All part-time temporary, temporary and seasonal employees are required to participate in PARS (Public Agency Retirement Services). The employee contributes 6.2% of their gross pay, tax deferred and the city contributes 1.3% of their gross pay. PARS provides immediate 100%vesting for participants. 716.04 Approval and Effective Date. This policy was approved by City Council on April 5, 2016 by Resolution No. 16-011 and is effective April 15, 2016. It supersedes all previous policies. 717 RETIREE HEALTH INSURANCE BENEFITS 717.01 Retiree Health Insurance Benefits. The city, in compliance with City of Southlake Ordinance 98-65, shall provide the opportunity for full-time employees who retire from the city to purchase health insurance coverage for the retiree and the retiree's dependents as provided by these regulations unless the retiree is eligible for group health insurance benefits through another employer. 717.01.01 Eligibility. Regular full-time employees who retire from the City of Southlake are eligible to enroll in retiree health insurance at the time of retirement if the retiree is not eligible for Medicare or other medical insurance. 717.01.02 Insurance Premiums. Retirees shall be responsible for paying for the health insurance coverage at the same rates as the City of Southlake less any city contribution approved by the City Council. Retirees shall make payments to the city in the same manner as employees who pay for dependent coverage with the city. 717.01.03 Termination of Coverage. Retiree health insurance shall be terminated once a retired employee becomes eligible for Medicare or is eligible to be covered under another medical plan. 717.02 Approval and Effective Date. This policy was approved by City Council on April 5, 2016 by Resolution No. 16-011 and is effective April 15, 2016. It supersedes all previous policies. 718 SOCIAL SECURITY/FICA 718.01 The city has opted out of the Social Security program and therefore, social security taxes will not be deducted from the employee's paycheck. 718.02 Approval and Effective Date. This policy was approved by City Council on April 5, 2016 by Resolution No. 16-011 and is effective April 15, 2016. It supersedes all previous policies. Page 25