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7. Staff Report-City Equipment PolicySCANDIA Staff Report Date of Meeting: May 7, 2014 To: City Council From: Kristina Handt, Administrator Re: Update to Personnel Policy Regarding City Equipment, etc Background: The City of Scandia Personnel Policy was adopted in 2010 and last amended in 2012. It establishes policies for hiring, resignation/termination, benefits, work hours, compensation, performance reviews, discipline, a grievance procedure and employee responsibilities. While Section 10 Employee Responsibility covers things such as general work rules, cellular phone use and conflicts of interest, there is no broad policy regarding the use of City vehicles, equipment, supplies, tools, uniforms and facilities. We've had some questions in this area recently so for consistency, the Council should consider a formal written policy. Last year the Council adopted a policy for computer use and may want that incorporated into the Personnel Policy as well rather than leaving it as a stand alone policy. The Council reviewed the attached policy at the April work session but tabled it until the next meeting due to some concerns expressed by the Fire Dept. Issue: Should the personnel policy be updated to include provisions for use of City equipment, vehicles, tools, supplies, facilities, etc? Proposal Details: Included in your packet is a draft policy. Staff is proposing to add a subsection (1) to section 10 that covers the appropriate and allowed uses of City vehicles, equipment, supplies, tools, uniforms and facilities. Staff drafted the policy based on a review of policies from other communities and had legal counsel review. Basically, the policy prohibits employees from using City vehicles, equipment, supplies, facilities, etc for personal or private use. City employees must follow rental policies the same as the public for use of any facilities for personal use (i.e. community center, kitchen, parks, and other City buildings). Since the last meeting the following information came out from the League of MN Cities when another community asked about allowing firefighters to wash their personal vehicles in the City facility. Hello City Managers, Here are a few thoughts, in response to this question: I am wondering if any of you have dealt with the issue of firefighters using the fire hall to wash their personal vehicles. If you have a policy that you used to address this, I would appreciate that or any other information that you may have related to the issue. It's actually not easy to provide a simple response. We've heard informally that in one city, a citizen reported the informal personal use of a city `wash bay' by city employees to the Office of the State Auditor. The Office advised the city that this use was improper and it was discontinued. But may a city council legitimize this activity by adopting a formal policy that allows fire department members to wash their personal vehicles? While your city attorney is the one to ask, there are some thorny issues, the main one being a question of public purpose expenditures. There may be a way to structure wording in a council adopted policy to address these `public purpose" issues. Perhaps, use of the fire hall to wash personal vehicles may be considered a condition of employment as a city firefighter. Check with the city attorney on this point. Note that such a policy may be difficult to administer — which city facilities may be used, may all employees use them, and what are the day and time restrictions for city employees using city facilities for personal reasons? Based on some discussions with other city attorneys, cities and employees should know that this might amount to a fringe benefit for tax purposes. Fringe benefits are taxable. So if an employee can wash a car anytime atpublic cost, the market value of that benefit is taxable compensation that should be reflected on the W-2. However, some may argue this is a " de minimums "fringe benefit. See http: //www. irs.gov/Government-Entities/Federal, -State-&-Local-Governments/De-Minimis-Fringe- Bene its The city could be liable for injuries or accidents that occur on city property. By allowing employees to use city resources (water, hoses, city fire halls) on their own time, there is an increased chance of slips, trips and falls by the employee. It may increase city insurance claims. And, consider costs to the city including, but are not limited to, heating or cooling the building during non -business hours or over the weekend. What is the cost of wear and tear on hoses, nozzles and perhaps cleaning devices? Can these types of costs also be justified as a valid public purpose expenditure, again, as a benefit of city employment as a firefighter? In sum, this simple question is fraught with legal and political complications. If your city would like to pursue it, best practice suggests consultation with the city attorney. Jeanette Behr, J.D. I Research Manager Please note, this information is not legal advice and is not a substitute for competent legal guidance. Consult your attorney concerning specific legal situations. Following the last work session the Fire Chief contacted other communities and found the following: In regards to the question that was raised by some members of the city council recently, I have contacted twelve fire departments from our surrounding area (Washington, Ramsey, Chisago Counties & Wisconsin). All 12 allow firefighters to wash & perform minor repairs to their personal vehicles in the fire station. A couple departments did have a policy to cover if it is to cold out they can't move out a truck with water in it. Some of the comments I received as to why they allow the use are; -Members are encouraged to find reasons to hang around the fire hall. -Firefighters don't receive health insurance, paid vacation, paid holidays, overtime, etc. -Firefighters may be considered "Part Time" employees, but no other part time employee is required to be on call 24hr a day. -Whatever we can do to keep people hanging around the station the better response time we get. -May keep someone on the Department as a perk -Far more cost effective than having full time staffing. -It's a small perk that we can offer that costs the cities very little. -One of the FEW benefits of being a member In Closing I would like to say that I don't believe you need an across the board policy for this one issue. If you do feel the need to create a policy for this issue please exempt the fire department, your members are giving a lot and asking for very little in return. In response to those comments I would offer that no other part time employee gets health insurance, paid vacation, paid holidays either. Also, firefighters are not the only staff to be on call 24/7. Our public works staff is on when there are sewer issues, snow or other storm related damage on the roads. If these perks are effective for recruiting firefighters, wouldn't they also help with recruiting for other positions? If so then perhaps the Council should direct staff to work with the City Attorney to draft a policy to allow these "perks" to be available to everyone. Options: 1) Direct staff to prepare resolution adopting changes at next Council meeting 2) Amend proposed changes and then direct staff to prepare for adoption 3) Direct staff to work with City Attorney to draft a policy allowing use of City facilities and equipment for personal use by employees 4) Make no changes to the Personnel Policy. Recommendation: Option 1 or 3.