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4.7. SR 10-06-1997~..~ty of iver MEMORANDUM Item #4.7. TO: FROM: DATE: SUBJECT: Mayor & City Council Lori Johnson, Asst. City Administrator/ Finance Director October 6, 1997 Consider Becoming Employer of Certain Community Recreation Employees City staff has recently received a request from the Community Recreation Board asking that the city consider serving as employer for two of its three employees. These two employees, the Secretary and Recreation Program Supervisor, are currently employees of the City of Otsego; Recreation Director JeffAsfahl is a School District employee. Attached are the Community Recreation Board minutes from the September 15 meeting at which time the board made a motion directing Jeff to approach the City of Elk River for payroll services. Also attached is a letter from Jeff to the Mayor and City Council which explains why the Board is making this request. In previous conversations with Jeff, I have indicated to him that administratively it is very easy to incorporate these two employees into the city's payroll. However, there are some other minor issues which need to be discussed, mainly by the Community Recreation Board. Some of these items include: · Benefits and Personnel Policy- These employees are currently receiving benefits (vacation, sick, and holiday leave, health, dental and life insurance, and etc.) based on Otsego's personnel policy. Elk River's benefits and policies may be different in many areas so the Board will need to determine how these employees will fit in to Elk River's policies. Obviously, it would be easiest if the Rec. employees had the same benefits and policies as other city employees, but we will work with whatever the Board approves. · Billing for Services - The city will bill Community Recreation at least monthly for its payroll costs. The billing will include added costs for worker's compensation. 13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425 Other - If this request is approved, these employees will need to be included for purposes of pay equity reporting, health insurance employee count, and the city becomes responsible for the actions of the employees. If the Council approves this request, city staff will work with Community Recreation and the City of Otsego to ensure a smooth transition as these two individuals become City of Elk River employees. There are numerous administrative details which will be worked out among the three organizations prior to changing the employer, but no problems or issues are expected. If approved, it is anticipated that the change will take place effective November 1, 1997. Finally, as you know, Councilmember Holmgren is a member of the Community Recreation Board. He is in support of this request and can provide input from the Board's perspective. As was stated earlier, adding two employees to our payroll can be accomplished very easily. Action Requested The Council is asked to consider becoming the employer of the Secretary and Recreation Program Supervisor for Community Recreation effective November 1, 1997, or a future date as agreed to by all parties. k\elkriver\sys\shrdoc\council\crempcit.doc COMMUNITY RECREATION BOARD Minutes Fr. 9/15/97 Attendance: Staff: J. Asfahl- Comm. Rec., C. Blesener & C. McNaughton-Commers Dist. 728 Com. Education Community Representatives: Doug Thompson - Hassan, Gary Eitel - City of Rogers, Mark Beming - City of Otsego, Roger Holmgren - City of Elk River, Sandy Borders - City of Dayton, Community Representatives absent: Livonia - The meeting was called to order at 12:00 by Roger Holmgren. A. Routine matters: 1 .) A_DDroval of 0ast minute~: On a motion by, Mark Beming, seconded by Doug Thompson the minutes from August 18, 1997 were approved. Motion carried. 2.) Agenda changes/additions: Chair R. Holmgren asked us to first cover agenda items B.2 and B.3 before we address item B.1. 3.) Staff Reports: JA reviewed the staff reports as presented with the agenda packets. B. Items of Information I Discussion: B.2) Consider Dayroll administration change: J. Asfahl asked the Board to consider making a change in our payroll and benefits service for or programs Secretary and Recreation Program supervisor positions. They are currently being payed by the city of Otsego. On a motion by Gary Eitel, seconded by Roger Holmgren, J. Asfahl was directed to request the city of Elk River to become the payroll and benefits agent for our programs' Secretary and Recreation Program Supervisor positions. Motion Carried. c~.3) Review 0rogram fee data: As requested at the August meeting J. Asfahl reviewed the summer of '97 program revenues/expense and fee information related to the programs that the Recreation office administers. B.I~ Discuss Otsego C0ncem: The Recreation Board listened to the concern as reported by Mark Beming. Doug Thompson also shared similar concem from Hassan about the dse in cost of the program. There was no action determined. B.4) Review new budget codes: Tabled. The meeting adjourned at 1:20 pm on a motion by D. Thompson, seconded by Gary Eitel. Motion Carried. Next regular meeting: Monday October 20, 1997. Respectfully Submitted, September 18, 1997 To: Mayor and Council Fr: Jeff Asfahl Re: Payroll Admin~str' ' ' ation For Community Recreation Staff On September 15, 1997 the Recreation Board directed me to request the city of Elk River to consider being the payroll and benefits agent for our programs' Secretarial and Recreation Program Supervisor position (2 persons total). Considering that these positions are currently paid by the city of Otsego, the Recreation Board viewed this as necessary considering the potential loss of Otsego as a 'oint Powers program partner. I reported this verbally as part of my report to the Council on Monday September 15th and mentioned that I would be working with Lori Johnson on the various technicalities and that a recommendation would be forth coming. Thank you for you consideration and support of the Community Recreation program! c: L. Johnson