HomeMy WebLinkAboutResolution No. 364-11 A•
r
• RESOLUTION
BE IT RESOLVED by the Common Council of the City of Rochester that the City adopt a
revised personnel policy regarding Relocation. A copy of the policy is attached.
PASSED AND ADOPTED BY THE COMMON COUNCIL OF THE CITY OF
ROCHESTER, MINNESOTA, THIS DA T 11
ESI ENT OF SAlb 60MMON COUNCIL
ATTEST:
• � ��1.�'
ITY CLERK
APPROVED THIS DAY OF T" , 2011.
• MAYOR OF SAID CITY
(Seal of the City of
Rochester, Minnesota)
Res 10\Adopt.Pers Policy.Relocation
•
CITY OF ROCHESTER
ORGANIZATIONAL POLICY
• RELOCATION
A. Application
1. This policy applies to all newly-hired exempt regular full-time employees whose new position
with the City of Rochester requires that they relocate more than fifty (50) miles. Relocation
costs are applicable to the employee, his or her spouse, dependents, personal and household
goods, provided the above criteria are met.
2. All relocation expenses covered by this policy must be approved in advance by the Director of
Human Resources. Payment for moving expenses exceeding the policy maximum or not cov-
ered by this policy may be made with the approval of the Director of Human Resources and the
City Administrator or the General Manager for Utility positions.
B. Arrangement for Relocation
1. All arrangements and contacts for moving shall be made through the City of Rochester Human
Resources Department, which will work closely with the employee in establishing the time of the
move.
2. Personal and household goods can be shipped by a carrier authorized by a state or federal reg-
ulatory agency to conduct household goods transportation services, or an employee may elect
to use an alternative method of shipping personal and household goods to a new location.
However, in either case the City of Rochester will not be held responsible for damages, loss or
• additional insurance coverage, above the basic amount provided by the carrier, for relocating
personal and household goods.
3. Should an authorized carrier be selected, two (2) bids will be obtained and submitted to the Di-
rector of Human Resources. Unless extenuating circumstances prevail, the lowest carrier bid
submitted shall be selected.
C. Allowable Costs for Relocation
1. The actual costs for approved relocation expenses shall not exceed 15% of the new employee's
starting annualized salary. Housing search expenses, as provided for by this policy, are not in-
cluded in the 15% maximum.
2. The City of Rochester will make direct payment to the moving contractor for relocating personal
and household goods, which includes:
a. Packing, loading and unloading of personal and household goods.
b. Transportation of personal and household goods.
c. Basic insurance coverage provided by carrier in their submitted bid.
Any items or services not covered by this policy shall be the financial responsibility of the new
employee.
• Relocation expenses shall be charged back to the department hiring the new employee.
CITY OF ROCHESTER
ORGANIZATIONAL POLICY
• D. Items Not Covered During Relocation
1. The City of Rochester will not pay for moving, or in any way assume responsibility for loss of or
damage to: automobiles; automobile trailers; vehicle mounted campers; motorcycles; airplanes;
snowmobiles; sailboats; motorboats; pets; house plants; livestock; merchandise for sale or ex-
hibition; legal, technical or personal papers; currency; notes and securities; negotiable or com-
mercial paper; combustible items; perishable foods; or firewood.
E. Services Not Covered Durinq Relocation
1. The City of Rochester will not pay for costs incurred for: removal of draperies, rods, mirrors, or
other items which may be attached to walls, disassembly/reassembly of playground equipment
or shop equipment; removal of electrical equipment, light fixtures, T.V. antennas, air condition-
ers, stereo equipment or televisions; modifications to structures, plumbing, electric services or
venting; or services performed by the carrier on an overtime basis unless approved in writing by
the Director of Human Resources.
F. Mobile Home Transportation
1. The City of Rochester will pay the costs for mobile home transportation in lieu of shipment of
personal and household goods but such costs do not include plumbing, electrical and gas
hookups, permits, skirting, damage to the trailer structure during the move, replacement of
blown/damaged tires, tie-down fees, entry fees, utility conversions, or antenna hookups.
2. The allowance to relocate a mobile home cannot exceed the cost of transporting personal and
• household goods using a carrier authorized by a state or federal regulatory agency to conduct
household goods transportation services. For this purpose, two comparative bids must be sub-
mitted to the Director of Human Resources.
G. In-Route Travel Expenses
1. The employee, spouse and dependents are eligible for travel allowance for reasonable expens-
es from point of origin to destination based on a minimum travel of 350 miles per day.
2. Reimbursement will be for reasonable expenses incurred for meals; lodging; and incidental ex-
penses (as confirmed by receipts obtained by the employee).
3. Mileage for the use of two (2) automobiles is authorized when used in conjunction with reloca-
tion and will be compensated at the City's allowable mileage rate effective at the time.
4. Origin to destination mileage is that mileage specified in the "Official Household Goods Trans-
portation Mileage Guide No. 19", issued by the American Moving and Storage Association
(AMSA) and Rand McNally-TDM, or similar industry guideline with special allowance not to ex-
ceed ten (10) percent for road construction, severe weather, or health conditions.
H. Temporary Living Expense
1. The employee, spouse and dependents are eligible for temporary living expenses actually in-
curred"for lodging, for a period not to exceed three (3) days after arrival at the destination, be-
ginning the morning after arrival at the new location. Receipts for all expenses are required.
•
CITY OF ROCHESTER
ORGANIZATIONAL POLICY
• I. Expenses Related to Selling a Home
1. No expenses related to the actual sale of a home or mobile home will be reimbursed by the City
of Rochester.
J. Expenses Related to Purchasing a Home
1. No expenses related to the actual purchase of a home shall be reimbursed by the City of Roch-
ester.
K. Housing Search at New Location
1. A new employee, with both the approval of the Director of Human Resources and the City Ad-
ministrator or the General Manager for Utility positions, will be reimbursed for one (1) round-trip
airline (coach) trip for him/her and his/her spouse to select or approve a residence. The dura-
tion of such trip is limited to not more than five (5) consecutive days. Should the employee elect
to use his/her personal automobile for the trip, reimbursement will be at the City's allowable
mileage rate effective at the time up to a maximum amount of the cost, including tax, that would
have been incurred for airline (coach) travel at the time such automobile trip is made.
2. Reimbursement for expenses incurred during a trip to select or approve a residence will be for
reasonable expenses incurred for meals and lodging (as confirmed by receipts obtained by the
employee).
L. Expense Reporting
• 1. The employee shall account for all monies spent by completing a Personal Expense Reim-
bursement report within thirty (30) days of the completion of the move.
2. The only expense that will be billed directly to the City of Rochester will be the carrier charges
for the movement of household goods or a mobile home. A purchase order must be issued for
this purpose.
3. All other expenses will be paid by the employee and reimbursed by the City of Rochester upon
presentation of proper receipts.
M. Promissory Agreement
1. Employees relocated by the City of Rochester are required to sign a relocation agreement. The
relocation agreement states that the employee is obligated to repay all expenses for relocation
paid on his/her behalf by the City of Rochester should he/she voluntarily terminate employment
before completing one (1) year of service with the City.
N. Relocation Tax Information
1. The present Internal Revenue Code and Regulations provide that all amounts paid to an em-
ployee directly or on his or her behalf as reimbursed moving expenses are to be included in
gross income. The law then allows deductions from income for certain costs incurred incident to
that move. These deductions are, however, subject to limitations. If the reimbursements ex-
ceed the allowable deductions, a net increase in taxable income may result. Generally to the
• extent that income from reimbursements exceeds allowable deductions, the employee may
have compensation subject to withholding (for Federal, State, Local and Social Security Tax).
CITY OF ROCHESTER
ORGANIZATIONAL POLICY
• 2. The employee should inform the. Director of Human Resources when the move is complete.
The City of Rochester will furnish to the employee all information relating to costs incurred and
reimbursement.for proper filing of tax returns.
O. Exceptions to this Policy
1. Questions or clarifications of this policy should be directed to the Director of Human Resources.
Request for any deviation must be approved in advance in writing by the Director of Employee
Relations and the City Administrator or General Manager for Utility positions.