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Item 4H - MemoITEM 4H M E M O R A N D U M October 27, 2025 TO: Alison Ortowski, City Manager FROM: Stacey Black, Assistant City Manager / Sr. Director of Human Resources SUBJECT: Resolution No. 25-046, amending the Employee Handbook to create Policy 721 – “Milestone Service Award Day” and providing an effective date. Action Requested: The purpose of this item is to request City Council approval of Resolution No. 25-046, amending the Employee Handbook to create Policy 721 – “Milestone Service Award Day”. This new policy provides a paid day off to employees upon reaching key service milestones, reinforcing the City’s recognition culture and commitment to being an Employer of Choice. Background Information: The City’s Employee Handbook contains all personnel policies approved by both the City Council and the City Manager. In accordance with Section 4.14 of the City Charter, the City Council must approve any personnel policies that carry financial implications. The City Manager retains the authority to approve administrative updates or policies without financial impact, provided that City Council is notified of such changes. This item proposes the creation of a new personnel policy, Policy 721 - Milestone Service Award Day. The policy establishes a paid day off to recognize employees who achieve key service milestones, outlines eligibility criteria, and defines how the benefit is awarded, scheduled, and used. As part of the City’s ongoing Employer of Choice strategy, staff regularly reviews personnel policies and benefit programs to ensure they support engagement, retention, and employee well-being. This initiative reflects the City’s belief that exceptional public service begins with an exceptional employee experience—one that values dedication, celebrates longevity, and honors those who serve the Southlake community year after year. During the 2025 City Council Summer Workshop, staff presented several workforce investment opportunities designed to enhance recognition and retention with minimal financial impact. Council expressed support for introducing the Milestone Service Award Day as Alison Ortowski, City Manager ITEM 4H October 27, 2025 Page 2 a meaningful way to honor employees for their long-term commitment to public service. Under this policy, employees will receive one paid day off in the calendar year in which they reach five, ten, fifteen, and twenty years of continuous service. Employees with twenty or more years of service will receive one Milestone Service Award Day annually each year thereafter. Eligible employees will be identified by the Human Resources Department each year, and both the employee and their department will be notified when the award becomes available. The day will be entered as a distinct leave type in the City’s timekeeping system and must be scheduled in advance with supervisor approval. It must be used within the same calendar year and cannot be carried forward, banked, or paid out at separation. The proposed policy is summarized below: • Establishes a paid day off benefit for regular full-time and part- time employees reaching 5, 10, 15, and 20 years of continuous service. • Provides an ongoing annual day each year after an employee reaches 20 years of service. • Specifies award amounts by classification: ­ Full-time general government employees – 8 hours ­ Part-time general government employees – 4 hours ­ Fire shift personnel – 12 hours • Requires use of the day within the same calendar year it is awarded (use-it-or-lose-it). If approved, implementation of this policy in 2026 will recognize 88 employees who have reached a qualifying service milestone. This includes 48 employees with more than 20 years of service, three employees with 15 years of service, eight employees with 10 years of service, and 29 employees with five years of service. These recognitions represent nearly one in five members of the City’s workforce and underscore the deep experience and loyalty that define Southlake’s organizational culture. This policy reinforces the City’s commitment to being an Employer of Choice by celebrating longevity and fostering a culture of appreciation. Recognizing years of service through a tangible benefit not only honors the dedication of long-serving employees but also strengthens engagement, loyalty, and pride in public service. If approved, the new policy will take effect January 1, 2026, be published Alison Ortowski, City Manager ITEM 4H October 27, 2025 Page 3 in the City’s Employee Handbook, and communicated to all employees. Financial Considerations: The addition of the Milestone Service Award Day has no direct financial impact. It will be absorbed within existing departmental budgets and managed through regular scheduling and operational planning. Strategic Link: • Focus Area: Performance Management and Service Delivery • Corporate Objectives: ­ L1: Defining and managing a professional workplace culture that supports City values and promotes a positive employee experience. ­ L3: Attracting, developing & retaining a talented and motivated workforce for lasting world-class performance. Citizen Input/ Board Review: N/A Legal Review: The City Attorney has reviewed the proposed revisions to the Milestone Service Award Day policy. Alternatives: Make changes as desired by City Council. Deny the request. Supporting Documents: Attachment A: Resolution No. 25-046 Staff Recommendation: Staff recommends City Council approve Resolution No. 25-046, amending the Employee Handbook to create Policy 721 – “Milestone Service Award Day” RESOLUTION NO. 25-046 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOUTHLAKE, TEXAS, AMENDING THE EMPLOYEE HANDBOOK TO CREATE POLICY 721 – “MILESTONE SERVICE AWARD DAY” AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Southlake (the "City") previously adopted an Employee Handbook; and WHEREAS, the City wishes to amend the Employee Handbook to create Personnel Policy 721 – “Milestone Service Award Day”; 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, a copy of which is attached as Exhibit “A” and is incorporated into the Employee Handbook: Policy 721 – “Milestone Service Award Day” Section2. That this resolution is in effect upon passage and adoption by the City Council effective January 1, 2026. PASSED AND APPROVED THIS THE ____ DAY OF ________________________, 2025. _____________________________________ Shawn McCaskill, Mayor ATTEST: __________________________________ Amy Shelley, City Secretary RESOLUTION NO. 25-046: EXHIBIT A Policy No. 721: Milestone Service Award Day Page 1 721: Milestone Service Award Day 721.01 General. In recognition of long-term service and employee commitment, the City of Southlake will provide a paid day off in the form of a Milestone Service Award Day to eligible employees upon reaching specific tenure milestones. This benefit reflects the City’s commitment to employee well-being and appreciation for dedicated public service. 721.02 Eligibility. Regular full-time and part-time employees are eligible to receive a Milestone Service Award Day in the calendar year in which they reach each of the following continuous service milestones: 5, 10, 15, and 20 years. Employees who have reached 20 or more years of service will receive one Milestone Service Award Day annually each year thereafter. 721.03 Benefit Description. 721.03.01 Employees will receive one Milestone Service Award Day in the calendar year in which they reach their 5th, 10th, or 15th year of service. This is a one-time award per milestone and will not recur in future years. Example: An employee who reaches five years of service will receive the 5-year Milestone Service Award Day during that year only—not again in future years. 721.03.02 Beginning in the 20th year of continuous service, employees will receive one Milestone Service Award Day each calendar year. 721.03.03 Leave time will be awarded based on the employee’s classification: i. Full-time general government employees: eight (8) hours ii. Part-time general government employees: four (4) hours iii. Fire shift personnel: twelve (12) hours 721.03.04 The Milestone Service Award Day must be used in the same calendar year it is awarded. It is use-it-or-lose-it, meaning the leave will be forfeited if not used by December 31 of that year. It may not be carried over, banked, or paid out upon separation from employment. 721.03.05 The employee’s most recent hire date will be used to determine milestone eligibility. 721.04 Scheduling and Use. Employees must request use of their Milestone Service Award Day in advance through their supervisor or Department Director. Supervisors will evaluate requests based on operational needs and staffing availability. Requests by Department Directors must be approved by the City Manager or their designee. Every reasonable effort will be made to accommodate leave requests. However, leave may only be granted when workload permits. Employees are responsible for submitting requests in a timely manner and for verifying they have sufficient paid leave to cover the absence. RESOLUTION NO. 25-046: EXHIBIT A Policy No. 721: Milestone Service Award Day Page 2 Leave may be denied if the employee does not have adequate paid leave or if the absence would negatively impact department operations. 721.05 Responsibility. Human Resources is responsible for identifying eligible employees annually, notifying them and their departments, and ensuring accurate tracking and recording of the Milestone Service Award Day. 721.06 Approval and Effective Date. This policy was approved by City Council on November 4, 2025 by Resolution No. 25-046 and is effective January 1, 2026.