Item 4BITEM 413
CITY OF
SOUTH LAKE
MEMORANDUM
September 14, 2021
TO: Shana K. Yelverton, City Manager
FROM: Stacey Black, Director of Human Resources
SUBJECT: Approve Resolution No. 21-041, Amending the City of Southlake
Personnel Policy No. 704 - Vacation and providing an effective date.
Action
Requested: City Council approval of Resolution No. 21-041, to amend the City of
Southlake Personnel Policy No. 704 — Vacation and to provide an
effective date.
Background
Information: The City's Employee Handbook contains all personnel policies approved
by the City Council and the City Manager. 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 implications,
provided City Council is notified of all such changes.
This request is to revise Policy No. 704 — Vacation to increase the
amount of vacation an employee earns each year to comply with Section
142.0013(b) of the Texas Local Government Code.
As part of its standard benefits package, the City of Southlake provides
full-time employees with paid vacation leave. The amount of vacation
leave provided to each employee is based on an employee's length of
full-time service with the City.
Section 142.0013(b) requires a municipality with a population of more
than 30,000 provide a member of the fire or police department with 15
vacation days (3 weeks) each year with pay if the member has been
regularly employed in the department for at least one year. The City has
surpassed 30,000 population and must comply with this unfunded state
mandate. The draft policy proposes extending this benefit to all full-time
employees.
Current Policy. Employees currently accrue vacation each pay period
up to a maximum accrual cap. Employees are eligible to use vacation
leave after a six-month waiting period with supervisor approval. Regular
full-time employees can accrue up to 240 hours of vacation leave, and
fire shift personnel can accrue up to 360 hours of vacation leave. Fire
Shana K. Yelverton, City Manager
September 14, 2021
Page 2
ITEM 4B
shift personnel accrue at a higher rate and have a higher accrual cap
because they work 120 hours (five 24-hour shifts) in a pay period instead
of the traditional 80 hours. Upon separation of employment, employees
who have completed twelve months of service are paid for any unused,
accrued vacation leave in their final paycheck.
Proposed Policy. The draft policy proposes continuing all existing
provisions of the policy, with the exception of increasing vacation accrual
amounts at an employee's first tenure anniversary (as required by
Section 180.0013(b) for fire and police personnel) and upon their fifth
tenure anniversary. The below chart compares the current and proposed
accrual rates:
Months of
Service
Less than 1
year
Current Annual
Accrual Rate
Regular: 2 weeks
Fire Shift: 5 shifts
Proposed Annual
Accrual Rate
— No Change —
Regular: 2 weeks
Fire Shift: 5 shifts
— Increased Accrual —
12-59 months
Regular: 2 weeks
Required for Police and Fire
(1-5 years)
Fire Shift: 5 shifts
Regular: 3 weeks
Fire Shift: 7.5 shifts
—Increased Accrual —
60-119 months
Regular: 3 weeks
(5-10 years)
Fire Shift: 7.5 shifts
Regular: 4 weeks
Fire Shift: 10 shifts
120-239
_
— No Change —
months
Regular: 4 weeks, 3 days
Fire Shift: 11 shifts
Regular: 4 weeks, 3 days
(10 — 20 years)
Fire Shift: 11 shifts
— No Change —
240+ months
Regular: 5 weeks, 1 day
(20+ years)
Fire Shift: 12 shifts
Regular: 5 weeks, 1 day
Fire Shift: 12 shifts
Employer of Choice. One of the City's strategies is to be an Employer
of Choice. Paid vacation leave is one of the most commonly offered
benefits and provides employees with time away from work for rest,
relaxation, travel, and other planned reasons. Providing vacation leave
supports a healthy work -life balance for employees.
In the Spring of 2021, the City conducted its biennial Employee Benefits
Survey. This survey helps ensure the City is spending benefit dollars in
a meaningful way that meets employees' needs and expectations while
being fiscally responsible. On the survey, vacation leave ranked third on
a list of 16 employee benefits, only behind the retirement program and
health insurance. 97% of respondents indicated vacation leave was very
Shana K. Yelverton, City Manager
September 14, 2021
Page 3
important to them.
ITEM 4B
As the workforce changes, employee expectations are also changing.
Employee comments in the benefits survey revealed that employees
desire a higher vacation accrual. Increasing the vacation leave limit was
the third most requested benefit change on the survey, behind lowering
the health insurance premiums and improving the health plan. In
addition, as we recruit employees to come work for the City,
increasingly, candidates voice their desire to accrue more vacation
earlier in their tenure.
Finally, staff conducted a survey (attached) to determine vacation
accruals offered by municipalities within the City's defined labor market.
The survey revealed that 46% provide employees with three weeks of
vacation leave after one year of service and one city provides employees
with four weeks of vacation leave after five years of service. Increasing
the vacation accrual rates for all employees places Southlake at a
competitive advantage and helps the City attract and retain top talent.
The proposed policy meets the requirements outlined in Section
142.0013(b) of the Texas Local Government Code, provides the City
with a competitive advantage in the labor market, and, with City Council
approval, will be effective October 3, 2021.
Financial
Considerations: Paid time off is incorporated in an employee's annual base salary, and
base salary costs are included in the annual budget.
However, unused vacation leave is paid to an employee upon separation
of employment if the employee has been employed for at least one year.
Staff conducted a data analysis to determine the potential financial
impact of increasing the vacation accrual rates on vacation payout for
employees who separate employment. Staff reviewed actual employee
turnover in a 12-month period and applied the higher accrual rates to
those employees. Assuming an employee did not use any of the
additional accruals and that the unused accrual was paid in their final
paycheck, the estimated financial impact would have been
approximately $12,000 for Police and Fire and approximately $19,000
for civilian staff. This additional cost can generally be absorbed in the
budget through position vacancy savings.
Shana K. Yelverton, City Manager ITEM 413
September 14, 2021
Page 4
Strategic Link:
• Focus Area: Performance Management and Service Delivery
• Corporate Objective: L3 Attract, develop and retain a skilled
workforce
• Employer of Choice
Citizen Input/
Board Review: N/A
Legal Review: The City Attorney has reviewed the proposed policy.
Alternatives: Changes as may be desired by the City Council.
Deny the proposed policy.
Supporting
Documents: Resolution No. 21-041
Policy No. 704 — Vacation, approved April 5, 2016
Vacation Leave Survey
Staff
Recommendation: Approve Resolution No. 21-041, Amending the City of Southlake
Personnel Policy No. 704 - Vacation and providing an effective date.
RESOLUTION NO. 21-041
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SOUTHLAKE, TEXAS, AMENDING THE CITY OF
SOUTHLAKE PERSONNEL POLICY NO. 704 — VACATION
LEAVE AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City of Southlake (the "City") previously adopted personnel
policies; and
WHEREAS, the City wishes to revise Personnel Policy No. 704 — Vacation Leave
to replace the previously adopted personnel policy; and
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 policy that
has financial implications effective as of October 1, 2021, a copy of which is attached as
Exhibit "A" and will be incorporated into the Employee Handbook as of October 1, 2021:
Policy No. 704 — Vacation Leave
Section2. That this resolution is in effect upon passage and adoption by the City
Council.
PASSED AND APPROVED THIS THE
, 2021.
John Huffman, Mayor
ATTEST:
Amy Shelley, City Secretary
DAY OF
Page 1
Resolution No. 21-041, Exhibit A
CITY OF
SOUTHLAKE
704 VACATION LEAVE
704.01 Eligibility. All regular full-time employees shall accrue vacation leave; however, vacation leave
may not be used until six (6) months of continuous full-time service is completed. Vacation
leave does not vest until the completion of twelve months of continuous full-time service.
Therefore, vacation leave is forfeited if employment terminates or an employee separates
employment for any reason before completing twelve months of continuous full-time 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 the length of continuous full-time service
with the City of Southlake. Vacation leave shall not be advanced. Vacation leave shall not
accrue when an employee is on a leave of absence without pay for an entire pay period. An
employee is considered to be on a leave of absence without pay when they have exhausted
all available paid leave, and they are not eligible for or have exhausted available family
medical leave in accordance with Policy No. 207, Family Medical Leave Act.
Employees shall move into the next accrual bracket following the first full pay period after
satisfying the required months of service.
704.03.01 Full-time employees. Full-time employees, except for full-time fire -shift
personnel, receive vacation leave at the below rates:
Months of
Per Period Accrual Rate
Maximum Accrual
Service
(Estimated Annual Accrual)
Allowed
0-11 months
3 hours and 5 minutes
240 hours
(less than 1 year)
(2 weeks)
12-59 months
4 hours and 38 minutes
240 hours
(1-5 years)
(3 weeks)
60-119 months
6 hours and 10 minutes
240 hours
(5-10 years)
(4 weeks)
120-239 months
7 hours and 5 minutes
240 hours
(10 — 20 years)
(4 weeks, 3 days)
240+ months
8 hours
240 hours
(20+ years)
(5 weeks, 1 day)
704.03.02 Fire Shift Personnel. Full-time fire shift personnel who are on the 24-hour shift
schedule shall receive vacation leave at the following rates:
Policy No. 704 —Vacation Leave Page 1
Resolution No. 21-041, Exhibit A
CITY OF
SOUTHLAKE
Months of
Per Period Accrual Rate
Maximum Accrual
Service
(Annual Accrual)
Allowed
0-11 months
5 hours (5 shifts)
360 hours
(less than 1 year)
12-59 months
7 hours and 30 minutes
360 hours
(1-5 years)
(7.5 shifts)
60-119 months
10 hours (10 shifts)
360 hours
(5-10 years)
120-239 months
11 hours (11 shifts)
360 hours
(10 — 20 years)
240+ months
12 hours (12 shifts)
360 hours
(20+ years)
704.04 Maximum Accrual Allowed. Employees shall not be permitted to accrue more than the
specified maximum accrual of vacation leave at any time. Vacation leave shall cease to accrue
when an employee's vacation leave balance reaches the maximum accrual allowed.
704.05 Scheduling Vacation. Employees shall schedule vacation in advance with the employee's
supervisor or Department Director, who shall give due consideration to the employee's needs
and the remaining employees' ability 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 their designee. Vacations shall only be scheduled when
workload permits; however, every reasonable effort shall be made to accommodate
individual requests. Employees are responsible for ensuring that vacation leave is requested
within a reasonable amount of time and confirm they will have adequate leave accruals to
cover the requested time off. Supervisors may deny requests for time off when the employee
does not have sufficient vacation leave accrual available for the request or when it cannot be
accommodated due to business needs.
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 vacation leave for the duration of the disciplinary suspension. In no
case shall vacation time be granted to 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 full-time employment shall
be paid for any unused vacation time, not to exceed the established maximum accrual balance
of 240 hours (360 hours for fire shift personnel).
Policy No. 704 —Vacation Leave Page 2
Resolution No. 21-041, Exhibit A
CITY OF
SOUTHLAKE
704.09 Approval and Effective Date. This policy was approved by City Council on September 21, 2021
by Resolution No. 21-041 and is effective October 3, 2021. It supersedes all previous vacation
leave policies.
Policy No. 704 —Vacation Leave Page 3
Current Policy
CITY OF
SOUTHLAKE
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 Full-time employees. Full-time employees, except for full-time fire -shift
personnel, receive vacation leave at the below rates:
Months of
Service
Per Period Accrual Rate
(Annual Accrual)
Maximum 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
0-59 months
3.08 hours (2 weeks)
240 hours
704.03.02 Fire Shift Personnel. Full-time fire shift personnel who are on the 24-hour shift
schedule shall receive vacation leave at the following rates:
Months of
Service
Per Period Accrual Rate
(Annual Accrual)
Maximum Accrual
Allowed
0-59 months
5 hours (5 shifts)
360 hours
60-119 months
7.5 hours (7.5 shifts)
360 hours
120-239 months
11 hours (11 shifts)
360 hours
240+ months
12 hours (12 shifts)
360 hours
0-59 months
5 hours (5 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.
Policy No. 704 —Vacation Leave Page 1
Current Policy
CITY OF
SOUTHLAKE
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 vacation leave for the duration of the disciplinary suspension. In no
case shall vacation time be granted to 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.
Policy No. 704 —Vacation Leave Page 2
CITY OF SOUTHLAKE, TEXAS
VACATION LEAVE SURVEY, SEPTEMBER 2021
0-11 Months (<1 12-59 Months 60-119 Months 120-239 Months 240+ Months
City Population
_ year) 0-5 years) (5-10 years) (10-20 years) (20+ years)
Allen 101,730 2 weeks 2 weeks 3 weeks 4 weeks 4 weeks
Fire: 5 shifts Fire: 7.5 shifts I Fire: 7.5 shifts Fire: 10 shifts Fire: 10 shifts
Bedford
48,820
2 weeks
2 weeks
3 weeks
4 weeks
4 weeks
Fire: 5 shifts
Fire: 7.5 shifts
Fire: 7.5 shifts
Fire: 10 shifts
Fire: 10 shifts
Carrollton
137,650
2 weeks
2 weeks
3 weeks
1 3 weeks
4 weeks
Fire: 7.5 shifts
Fire: 7.5 shifts
Fire: 7.5 shifts
Fire: 7.5 shifts
see notes
Fire: 10 shifts
Colleyville
25,700
2 weeks
2 weeks
3 weeks
4 weeks
5-15 years: 3 weeks/Fire-7 shifts
Fire: 5 shifts
Fire: 5 shifts
Fire: 7 shifts
Fire: 10 shifts
Over 15 ears: 4 weeks/Fire-10 shifts
Coppell
41,410
2 weeks
3 weeks
3 weeks
3 weeks
4 weeks, 4 days
Fire: 5 shifts
Fire: 7.5 shifts
Fire: 7.5 shifts
Fire: 7.5 shifts
Fire: 12 shifts
Euless
57,550
2 weeks
2 weeks
3 weeks
4 weeks
Fire: 7.5 shifts
Fire: 7.5 shifts
Fire: 7.5 shifts
Fire: 10 shifts
Farmers Branch
35,910
2 weeks, 2 days
2 weeks, 2 days
3 weeks
see notes
5 weeks
Years 10-14: 3 weeks 2days/ Fire-8.5 shifts
Fire: 6 shifts
Fire: 6 shifts
Fire: 7.5 shifts
Fire: 12 shifts
Years 15-19: 4 Weeks/Fire-10 shifts
Police and Fire personnel (PSO/Certified)
Flower Mound
78,080
2 weeks
2 weeks
3 weeks
4 weeks
4 weeks
accrue at a rate to obtain three weeks vacation
Frisco
193,870
3 weeks 3 weeks
3 weeks
3 weeks, 3 days
4 weeks
Fire: 7.5 shifts Fire: 7.5 shifts
3 weeks 3 weeks
Fire: 7.5 shifts
Fire: 9 shifts
Fire: 10 shifts
Grapevine
52,980
3 weeks 3 days
4 weeks, 1 day
4 weeks, 4 days
Fire: 7.5 shifts Fire: 7.5 shifts
Fire: 9 shifts
Fire: 10.5 shifts
Fire: 12 shifts
Hurst
38,910
2 weeks
2 weeks
3 weeks
4 weeks
4 weeks
Keller
45,400
2 weeks
2 weeks
3 weeks
4 weeks
4 weeks
Fire: 7.5 shifts
Fire: 7.5 shifts
3 weeks
Fire: 7.5 shifts
3 weeks
Fire: 10 shifts
4 weeks
Fire: 10 shifts
5 weeks
McKinney
194,890
2 weeks
Fire: 7.5 shifts
Fire: 7.5 shifts
Fire: 7.5 shifts
Fire: 10 shifts
Fire: 12.5 shifts
North Richland Hills
68,360
2 weeks
3 weeks
4 weeks
4 weeks
5 weeks
Fire: 7 shifts
Fire: 7 shifts
Fire: 10 shifts
Fire: 10 shifts
Fire: 12 shifts
Plano
285,190
3 weeks
3 weeks
3 weeks
3 weeks, 3 days
4 weeks, 4 days
Fire: 7.5 shifts
Fire: 7.5 shifts
Fire: 7.5 shifts
Fire: 9 shifts
Fire: 12 shifts
Richardson
115,630
2 weeks
3 weeks
3 weeks
see notes
4 weeks
4 weeks after 14 years
University Park
22,900
2 weeks, 1 day
2 weeks, 1 day
2 weeks 3 days
See notes
I
4 weeks
10-15 Years: 3 weeks / Fire: 7.5 shifts
Fire: 5.5 shifts
Fire: 5.5 shifts
Fire: 6.5 shifts
Fire: 10 shifts
16-20 Years: 3 weeks 2 days/ Fire: 8.5 shifts
Southlake 2 weeks go2 weeks 3 weeks 4 wks, 3 days 5 wks, 1 day
(Current) Fire: 5 shifts Fire: 5 shifts ire: 7.5 shifts Fire: 11 shifts Fire: 12 shifts
Southlake 2 weeks 3 weeks 4 weeks 4 wks, 3 days 5 wks, 1 day
(Proposed) Fire: 5 shifts Fire: 7.5 shifts Fire: 10 shifts Fire: 11 shifts Fire: 12 shifts EU:1