HomeMy WebLinkAbout06(H) - Resolution Approving Purchasing Policy Updates ReportCITY COUNCIL AGENDA REPORT
MEETING DATE:
PREPARED BY:
PRESENTED BY:
AGENDA ITEM:
GOAL AREA
OBJECTIVE:
January 04, 2023
Nicole Klekner, Assistant Finance Director
Cathy Erickson, Finance Director
Resolution Approving Purchasing Policy Updates
High-Value City Services
1.Establish financial stability for all funds.
ITEM: 6H
RECOMMENDED ACTION:
Approve updated Purchasing Policy.
BACKGROUND:
Current Circumstances
The City maintains a Purchasing Policy which sets forth procedure and approval requirements
for all City purchases. The purpose of the Policy is to ensure all purchases are consistent with
Minnesota statutes and have a public purpose, to establish internal controls, to maintain the
appropriate documentation, to ensure the best value for the public money, and to assign
purchasing responsibility and authority to the level consistent with good business practice and
sound financial management to the extent possible.
The Purchasing Policy has not been updated since 2019. In order to bring the Policy up to date,
the City Attorney and Finance staff have completed an extensive review and update of the
Policy, considering the existing Policy, existing City practices, State law, and neighboring city's
policies. The draft Policy was then reviewed by the City Attorney, City Manager and
Department Heads.
Due to the extensiveness of the revisions, there is no red line version of the Policy. However,
below is a summary of the revisions:
Introduction - added a sentence stating that the Policy is consistent with Minnesota Statutes
but in the event of an inconsistency, the Statue controls.
Disposition of Property - updated to reflect the correct City Code Section.
Purchasing Authority - the draft Policy has updated purchasing authority limits that reflect
current economic conditions due to inflation and help with streamlining the purchasing process.
Every purchase must be approved per the approval authority listed regardless of the type of
purchase. Designated staff are now allowed to approve up to $5,000 (increase from $1,000).
Designated supervisors and the Public Works Specialist are now allowed to approve up to
$10,000 (increase from $5,000). Department Heads and the IT Manager are now allowed to
approve up to $15,000 (increase from $10,000). The approval level for the City Manager
remains at $20,000 and any purchases greater than $20,000 still require City Council approval.
City of Prior Lake I 4646 Dakota Street SE I Prior Lake MN 55372
Item 6H
Page 12
Purchasing Procedures and Authorizing Documents - The table includes all types of
purchases and provides the procedure and required documentation by type of purchase
and price. The procedures in the table were updated as follows:
•Increased the threshold for providing written quotes for which purchase orders are
required from $5,000 to $10,000 to adjust for inflationary price increases and reduce the
administrative burden.
•Changed purchase order threshold to only be required for capital items over $20,000.
Previously purchase orders were required for any purchases over $10,000. This change
will simplify the purchase order procedure by eliminating the need for a purchase order
for items such as fuel purchases. Purchases over $10,000 still require a contract and
purchases over $20,000 still require a city council resolution.
Professional Services - the draft Policy expands on the section regarding contracts for
professional services in excess of $20,000. Multi-year professional service contracts with an
aggregate total exceeding $20,000 shall also be submitted to the city council for approval,
regardless of annual amount.
Sole Source Procurements - a section was added to address instances when a required item
or service is only available from a single supplier, such as chemicals for water treatment. In
these instances, multiple quotes, bids or cooperative purchasing may not be available, but
purchasing authority limits do still apply.
Public Purpose - the draft Policy expands on the section regarding all expenditures made by
the City must be for a public purpose. Donations to people, non-profits, charities or other groups
are not permitted unless they are based upon specific statutory or charter authority and
approved by the City Council. Also, prize giveaways for public contests are prohibited with the
exception of public recreation programming.
Employee Appreciation/Motivation - the draft Policy now simply references the separate
Employee Recognition Policy and Wellness Policy to avoid duplicative information.
Capital Assets - the draft Policy increases the threshold to capitalize an asset from $5,000 to
$10,000 effective calendar year 2022. Assets purchased with federal funding should be
capitalized at $5,000 and identified in the fixed assets system.
Emergency Purchases - the draft Policy includes expanded information that emergency
expenditures of $20,000 or more should be approved by the City Council at the first opportunity.
Two approval options are the claims listing agenda item or a separate consent agenda item.
Credit Card Use - the draft Policy now simply references the separate Purchasing Card
Manual to avoid duplicative policies.
FINANCIAL IMPACT:
The Purchasing Policy does not approve any expenditures, instead it provides the process and
approval required for each expenditure.
The policy ensures all purchases are consistent with Minnesota statues, meet the public
purpose requirement, establishes internal controls, maintains appropriate documentation,
Item 6H Page 13
ensures the best value for public money, and assigns purchasing responsibility/authority to the
level consistent with good business practice and sound financial management policy to the
extent practical.
ALTERNATIVES:
1.Motion and second as part of the consent agenda to approve the updated Purchasing
Policy.
2.Motion and a second remove this item from the consent agenda for additional
discussion.
ATTACHMENTS:
1.Resolution -Consider Approval of an updated Purchasing Policy
2.Purchasing Policy 2023
3.Employee Recognition Policy 2023
4.Wellness Policy 2023
City of Prior Lake
Purchasing Policy
Adopted January 4, 2023
Table of Contents
Introduction .............................................................................................................................................. 1
Purchasing Authority ................................................................................................................................ 1
Purchasing Procedures and Authorizing Documents Reference Table .................................................... 2
Purchasing Procedures Detailed Requirements .................................................................................................. 3
Purchase Change Orders .......................................................................................................................... 4
Public Purpose
Meals………………………………………………………………………………………………………………………………………………….5
Employee Appreciation……………………………………………………………………………………………………………………....5
Ethics and Acceptance of Gifts ................................................................................................................ 6
Additional Purchasing Requirements ....................................................................................................... 6
Contract Documents ................................................................................................................................. 7
Contract and Procedure Documents Available on R:/Standard Agreements ..................................................... 7
Payment
Procedures for Verifying Receipt of Goods or Services for Payment ....................................................... 8
Emergency Purchases ............................................................................................................................... 8
Credit Card Use ......................................................................................................................................... 9
Prior Lake Purchasing Policy 2023 1
PURPOSE
The purpose of this Purchasing Policy is to ensure all purchases are consistent with Minnesota
statutes and have a public purpose, to establish internal controls, to maintain the appropriate
documentation, to ensure the best value for the public money, and to assign purchasing
responsibility and authority to the level consistent with good business practice and sound
financial management to the extent possible.
INTRODUCTION
Minnesota Statutes § 471.345 sets forth the law regulating the sale or purchase of supplies,
materials, equipment or the rental thereof, or the construction, alteration, repair or maintenance
of real or personal property in Minnesota Cities and the City of Prior Lake. This Policy provides
additional purchasing procedures and regulations for all City purchases. This Policy is consistent
with Minnesota Statutes but in the event of an inconsistency, the Statue controls.
DISPOSITION OF PROPERTY
Disposition of property is governed by Minnesota Statutes § 471.345 and City Code Section 111.
VIOLATIONS
Failure to comply with any portion of this policy may result in disciplinary action (up to and
including termination), cancellation of a City issued credit card, and legal and/or financial
consequences.
PURCHASING AUTHORITY
The City of Prior Lake has a “decentralized” purchasing program where individual departments
are responsible for making their own purchases. The City Manager or Department Heads may
delegate the authority to make purchases and execute documents for purchasing items or
services as long as the amount involved does not exceed the City Manager’s purchasing authority
of $20,000. The staff designated as authorized purchasers must be communicated to the Finance
Department. The following chart sets forth the minimum authority required for each purchasing
level:
Purchase Level Minimum Approving Authority
$0 - $5,000 Designated Staff
$5,001 - $10,000 Designated Supervisor/Public Works
Specialist
$10,001 - $15,000 Department Head/IT Manager
$15,001 - $20,000 City Manager
Above $20,000 City Council
Prior Lake Purchasing Policy 2023 2
PURCHASING PROCEDURES AND AUTHORIZING DOCUMENTS
The required purchasing procedures and authorizing documents by type and price are set out in
the following reference table. The detailed requirements of each purchasing procedure are
described below the reference table
Purchase Type Price Procedures
Authorizing Document
All purchases except
Professional/
Consultant/Software
and Real Estate
$0 - $10,000
Open Market/Negotiation or
Written Quotes or
Cooperative Purchasing
Quotes are not required
Invoice/Receipt
No Purchase Order Required
$10,001 - $25,000 Written Quotes or
Cooperative Purchasing
Purchase Order for Capital
items only if over $20,000,
Contract and
City Council Resolution if
over $20,000
$25,001 to
$175,000
Written Quotes or
Cooperative Purchasing or
Sealed Bids
Purchase Order for Capital
items only if over $20,000,
Contract and
City Council Resolution
Over $175,000 Cooperative Purchasing or
Sealed Bids
Purchase Order for Capital
items only if over $20,000,
Contract and
City Council Resolution
Professional
Services/Consultant/
Software
(engineering,
architecture, legal,
financial,
management, etc.)
$0 - $10,000
Open Market/Negotiation or
Written Quotes
Quotes are not required
Invoice
No Purchase Order Required
$10,001 - $75,000
Written Quotes or
Request for Proposals
*Quote/RFP may not be required
if deemed unnecessary by the City
Manager due to continuity, cost,
quality or time efficiencies.
Contract and
City Council Resolution if over
$20,000
Over $75,000
Request for Proposals
*RFP may not be required if
deemed unnecessary by the City
Manager due to continuity, cost,
quality or time efficiencies.
Contract and
City Council Resolution
Real Estate
All prices Open Market/Negotiation
Purchase Agreement
City Council Resolution
Prior Lake Purchasing Policy 2023 3
Professional Services
Individual contracts for professional services in excess of $20,000 annually shall be submitted to
the city council for approval. Multi-year professional service contracts with an aggregate total
exceeding $20,000 shall also be submitted to the city council for approval, regardless of annual
amount (ex. a 3-year professional services contract totaling $50,000 must be approved by the
city council, even though it has an annual amount under $20,000). The term “Professional
Services” applies to all advisory services such as, but not limited to: auditing, engineering,
financial, legal, personnel, technical, training, or other services.
Consultant Pool:
In cases where the City has established a pool of qualified consultants (e.g., engineers, architects,
planners), the consultant may be selected from the existing pool. The consultant pool is
approved by the City Council on a periodic basis.
Open Market/Negotiation:
• Written quotes are not required but at least two verbal quotes or other price comparisons
are recommended.
• Any quotes obtained, and any additional information should be documented.
• Generally, the lowest price should be selected. If not, the reasons for selecting an
alternative price should be documented.
Written Quotes:
• Obtain at least two written quotes. If two written quotes cannot be obtained document
the reason and any efforts to solicit additional quotes.
• Generally, the lowest quote should be selected. If not, the reasons for selecting an
alternative quote should be documented.
Cooperative Purchasing:
• Review approved cooperative purchasing ventures to determine if the
equipment/materials are available at a competitive price. Approved cooperative
purchasing ventures include: Minnesota Cooperative Purchasing Venture; Hennepin
County Cooperative Purchasing Group; Omnia Partners; Sourcewell; US Communities
Cooperative Purchasing Organization and Street and Trail Maintenance Joint Powers
Agreements.
• Purchases from any other cooperative purchasing venture must be approved in advance
by the City Attorney and Finance Department.
Sealed Bids:
• The process for publishing/posting notice for sealed bids will follow Minnesota Statute
Chapter 429 and Minnesota Statute § 412.311.
Prior Lake Purchasing Policy 2023 4
Request for Proposals:
• Create the request for proposals. Draft and/or obtain instructions to bidders (background,
procedure, timeline of procedure, submittal requirements, legal terms),
plans/specifications/requirements, bond forms, and contract form.
• Publish and/or post notice or solicit proposals from specific vendors.
• The contract should be awarded to the proposal that presents the best value to the City.
Document the reasons the proposal was selected.
If there are any irregularities or questions, contact the Finance Director or the City Attorney.
Federal Purchases:
Under uniform grant guidance (2 CFR 200.317-326) there are additional procurement
requirements that need to be considered when making purchases related to a federal program.
Five procurement methods are identified including: micro-purchases (≤10,000), small purchase
procedures (≤250,000), competitive proposal (>250,000) and noncompetitive proposal
(>10,000). The general purchasing policy addresses many of these requirements and the city will
also consider the full requirements in relation to each method as described in 2 CFR. The micro-
purchase threshold which is set by Federal Acquisition Regulation at 48 CFR Subpart 2.1 is subject
to change with inflation. The City will follow changes to thresholds as modifications occur. When
practicable, micro-purchasing will be distributed among qualified suppliers.
PURCHASE CHANGE ORDERS
Generally, changes in scope of work or price that occur after the approval of a purchase must be
re-approved. For any such change follow the procedures in the Purchasing Procedures and
Authorizing Document reference table shown above. Changes to construction and public
improvement projects, including professional services related to those projects, may be made as
follows:
Construction/Public Improvements Change Orders:
From time to time, it may be necessary to modify the work approved by the City Council in a
construction or public improvement contract. It is common to have changes which are within
the scope of work, reasonably minor, and need to be addressed quickly to ensure the project is
not delayed. These changes may consist of change in quantities needed (e.g. pavement/
pipe/gravel) or in changes to the work itself (e.g. location of a trail, size of a sign, change from
one type of valve to another). The City Engineer/Public Works Director may approve written
change orders that fall within the budgeted contingency. City Council approval is required for all
other change orders.
PUBLIC PURPOSE
No City funds shall be used to make purchases for personal use. City employees are responsible
for conserving and protecting City resources for the benefit of public interest. As good stewards
of public funds, City employees must only use City funds for public purpose expenditures.
Prior Lake Purchasing Policy 2023 5
In most circumstances public entities have no authority to give away public funds as
donations. Donations to people, non-profits, charities, or other groups are not permitted unless
they are based upon specific statutory or charter authority and approved by the City Council.
If funds are donated to the city, any related expenditure of those funds must be for a public
purpose.
Prize giveaways for public contests is also prohibited. Minnesota Statute § 471.15 allows for
the purchase of awards and trophies for public recreation programming.
The following purchases are deemed to have a public purpose. However, simply because the
purchase is included in the following lists does not mean the purchase is authorized. Each
purchase must also be budgeted and approved by the proper authority as identified by this
Policy.
Meals:
Meals generally may not be purchased using City funds unless related to City business. The
following is a list of authorized expenditures for meals:
• Provided immediately before or in conjunction with meetings of the Council, committees
or subgroups.
• When a breakfast, lunch or dinner meeting is conducted for official City business when it
is the only practical time to meet and when it involves non-City employee participants.
• In connection with a conference, workshop, seminar or meeting which the employee has
been authorized to attend.
• For employees while traveling outside of the City limits on City business.
• Department-sponsored meetings, conferences or workshops where invited participants
include non-City employees.
• Regularly scheduled supervisor trainings facilitated by Human Resources
• An organization-wide or department-wide annual meeting.
• In connection with work activities requiring continuous service when it is not possible to
break for meals (e.g., election days, water main breaks, high profile criminal
investigations, on-going emergency response activities).
• At the discretion of the City Manager.
Employee Appreciation/Motivation:
Events and gifts for City employees – however small – may not be purchased using City funds
except as set in the Employee Recognition Policy and Wellness policy. These permitted
expenditures are intended to serve the public purpose of recruitment and retention of the City’s
largest asset, its personnel. These practices are meant to ensure high employee productivity and
morale and reduce expenses resulting from low productivity and high turnover (e.g., recruitment,
training, inexperience, and lack of knowledge). Please see the Employee Recognition policy and
Wellness policy for allowable expenditures.
Prior Lake Purchasing Policy 2023 6
ETHICS AND ACCEPTANCE OF GIFTS
Minnesota Statutes § 471.87 states that employees authorized to take part in making any sale,
lease or contract in an official capacity shall not voluntarily have a personal financial interest in
that sale, lease or contract, or personally benefit financially from it.
For non-business related purchases, employees may only take advantage of special pricing
offered to employees of the City if the same pricing is offered to government employees state or
country wide. However, special pricing offered to the City by vendors may not be accepted by
employees in a position to make purchasing decisions or recommendations within that same
category of goods or services.
ADDITIONAL PURCHASING REQUIREMENTS
Approval:
The City’s financial system approval workflow has been designed to comply with the City’s
purchasing policy. Final approval of all purchases must be completed through this system. The
purchase is evidenced by the authorized purchaser’s invoice and/or receipt. The purchase must
also be approved and coded within the financial system.
Documentation:
Purchase order requirements are defined in the Purchasing Procedures and Authorizing
Documents reference table above. A purchase order is used to ensure accountability, provide
amount verification and avoid any misunderstanding with respect to cost between the vendor
and the City. The purchase order shall document the procedure used, the approving authority
and any relevant comments (i.e. which cooperative purchasing venture was used, other
quotes/prices obtained, efforts to obtain additional quotes/prices, why the lowest quote/price
was not selected). In addition, any purchase approved by the City Council shall be accompanied
by a Resolution. The Resolution, similar to the purchase order, shall document the procedure
used, the approving authority and any relevant comments.
Document Retention:
All written quotes/bids/proposals shall be retained for 6 years. All accepted written
quotes/bids/proposals shall be retained for 10 years. All written quotes/bids/proposals for
capital improvements shall be retained for 10 years. All accepted written quotes/bids/proposals
for capital improvements shall be retained permanently. All contracts shall be retained for 10
years.
Capital Assets:
A “capital improvement” is defined as any major nonrecurring expenditure ($10,000 and above)
for physical facilities of government. Assets purchased with federal funding should be capitalized
at $5,000 and identified in the fixed assets system. Typical expenditures are the cost of land
acquisition or interest in land, construction of roads, utilities, parks, vehicles and equipment and
facilities.
Prior Lake Purchasing Policy 2023 7
Budget:
All expenditures must be within the limits established by the department budget. Any non-
budgeted items must be approved by the Department Head and either the City Manager or City
Council (City Council if > $20,000).
Buy local:
Whenever possible, and consistent with State law and this Policy, the City shall endeavor to
purchase from local businesses.
Responsible Contractor:
Any construction (labor and materials) contract awarded by sealed bids shall include “responsible
contractor” language in both the request for bids and the contract, confirming that the contractor
is a “responsible contractor” pursuant to Minnesota Statute § 16C.285 and the vendor shall
provide a signed verification.
Technology Purchases (Hardware and Software):
Authorized purchasers must consult with Information Technology personnel prior to acquiring
any hardware and/or software to ensure it is consistent with the Technology Plan.
Electronic Signatures:
Signatures from City personnel and/or vendors may be obtained in electronic format. Any
acceptance of electronic signature shall be approved by the Finance Department.
Tax Exemption:
City purchases are generally tax exempt pursuant to Minnesota Statute § 297A.70. However, if
the purchase is related to a construction contract (labor and materials) the process is fairly
complicated, including the requirement that the materials to be tax exempt are bid out
separately. Anyone interested in utilizing the tax exemption in connection with a construction
contract (labor and materials) should contact the Finance Department and City Attorney to
ensure compliance with the law.
CONTRACT DOCUMENTS
The City has established a set of standard documents to be used for City projects and purchases.
City staff shall select the appropriate document and complete it as set forth on the chart in Exhibit
A. The forms are located R:/Standard Agreements. For each purchase, the form shall be copied
from R:/Standard Agreements and “saved as” in the appropriate folder to ensure use of the most
recent form.
Any changes to the standard documents must be reviewed and approved by the City Attorney
before the contract is submitted for approval. Any use of a contract other than a standard
document must be reviewed and approved by the City Attorney before the contract is submitted
for approval
Prior Lake Purchasing Policy 2023 8
Consultant Involvement:
If a consultant is involved in creating contract documents such as plans and specifications, the
consultant must use the City contract form unless approval is obtained from City Attorney. The
consultant should provide technical terms but not legal terms. If the consultant desires to add
legal terms (i.e. insurance, liquidated damages, termination, remedies) they must coordinate
with the City Attorney. Please talk to the consultant early in the process to ensure approval can
be obtained.
Contract Approval:
Prior to submitting a contract to the Department Head, City Manager or City Council for approval,
each contract shall:
• Be signed by the vendor;
• Have any exhibits attached;
• Have copies of all required bonds and insurance certificates attached;
• Include responsible contractor verification if applicable.
PAYMENT
All invoices should be addressed to the Finance Department at 4646 Dakota Street SE. Each
invoice will be stamped with the date received and forwarded to the appropriate department.
Each authorized purchaser will review and approve all invoices pertaining to their department
purchases through the City’s financial system approval workflow.
The Finance Department may request a W-9 prior to payment being made.
Prior to payment of final invoice related to construction contracts (labor and materials) the
following documentation shall be submitted to the Finance Department:
• Lien waivers;
• Contractor’s affidavit that all obligations have been paid;
• Certificate of withholding from Commissioner of Revenue (IC134).
All claims should be presented to the Council for review after payment.
EMERGENCY PURCHASES
Under Minnesota’s Emergency Management Act (Minn. Stat. §§12.01-12.61), the City has the
authority to enter into contracts during an emergency without following many normally required
procedures. An emergency is defined “an unforeseen combination of circumstances that calls
for immediate action to prevent a disaster from developing or occurring.” A disaster is “a
situation that creates an actual or imminent serious threat to the health and safety of persons,
or a situation that has resulted or is likely to result in catastrophic loss to property or the
environment, and for which traditional sources of relief and assistance within the affected area
are unable to repair or prevent the injury or loss.”
Prior Lake Purchasing Policy 2023 9
During an emergency or disaster and in compliance with the Emergency Management Act, the
City Council may waive compliance with the time-consuming procedures or formalities
concerning:
• The performance of public work;
• Contracting;
• Incurring obligations;
• Renting equipment; and
• Purchasing supplies and materials.
Emergency purchases will only be allowed when the mayor issues a proclamation declaring an
emergency and the steps listed in Minn. Stat. § 12.29 are completed.
If an emergency expenditure of $20,000 or more is required and made, such as a watermain
repair, the purchase should be approved by the City Council at the first opportunity. Two
approval options are the claims listing agenda item or a separate consent agenda item. In
general, a separate consent agenda item would only be needed if staff wants to bring
something specific to the council’s attention regarding this expenditure and cost.
CREDIT CARD USE
According to Minnesota Statute § 471.382, the City Council may authorize the use of a credit card
by any City officer or employee otherwise authorized to make a purchase on behalf of the City.
See Purchasing Card Manual for further information on credit card use.
END POLICY
EMPLOYEE RECOGNITION POLICY
December 2022
The program serves a public purpose to formally recognize significant contributions and
demonstrations of commitment during the performance of duties by employees, council,
advisory members, and stakeholders. This results in higher morale and productivity; thereby
helping the city fulfill its statutory responsibilities of promoting public health, safety, general
welfare, security, prosperity, and contentment for all the city’s residents in an efficient and cost-
effective manner. This policy authorizes public expenditures administered by the City Manager
who is responsible for this program and may vary from the guidelines, as they deem appropriate.
This may be taxable to the employee if the award value is not considered de minimis, as defined
by the IRS.
EMPLOYEE APPRECIATION & RECOGNITION
• New Employee Welcome Kit & Networking: New employees will receive city logo welcome
items. The supervisor may organize a networking meeting with their department, or they
may take the new employee out to lunch at a Prior Lake restaurant.
• Employee Appreciation: At the discretion of the City Manager, items of limited value may
be presented to employees.
• Appreciation Events: Employee Council will plan a summer appreciation event and a Years
of Service and Employee of the Year appreciation event. Department Heads may schedule
one annual appreciation event for their department.
• Employee Anniversary Month: Each month the Employee Council will plan and hand out
something to employees on their anniversary month.
• Employee Networking: Up to four times a year, the Employee Council may plan donuts, ice
cream, Secret Santa, etc. for employee socializing.
• Retirement/Resignation: For employees with less than 5 years of experience, no city funds
will be used for departing items; the supervisor may pool personal money. For employees
with 5+ years employment leaving in good standing, cake and a card may be purchased with
city funds. For employees with 20+ years of employment leaving in good standing (or as the
City Manager deems appropriate), the city will pay $200 towards food & cake for an
employee’s retirement party.
• Plaque Award Guidelines:
City Council Fulfillment of a complete four-year term.
Commissions & Advisory Committee Fulfillment of a complete nine-year term limit.
Employees Completion of 10 years of full/part-time
employment and leaving in good standing.
EMPLOYEE RECOGNITION POLICY
December 2022
EMPLOYEE LIFE EVENTS
• Funerals: Flowers/plant/plaque will be sent on behalf of City Employees to the employee in
the event of an employee’s loss of an immediate parent/stepparent, spouse,
child/stepchild. The staff member’s supervisor should notify HR to order flowers. (Does not
apply to seasonal/temporary employees.)
• Deceased Current Employee: For current full-time and part-time employees who pass away
while employed, flowers/plant/plaque will be sent on behalf of City Employees to the
employee’s immediate family. A plaque will be placed at Lakefront Memorial and/or a tree
will be planted with a plaque in one of the city parks in remembrance of the employee. For
seasonal/temporary employees, flowers/plant will be sent to immediate family.
• Deceased Former City Employee/Elected and Appointed Officials/Advisory Members: The
city may elect to recognize previous employees (including council, planning and EDA
members and advisory committee members) who pass away. Recognition will be
determined by the City Manager which may include: a monument, park bench, plaque, art
rendering, small structure or renaming of a street, park or public building as deemed
appropriate in the circumstances with respect to out Sign Policy.
• Births/Birthdays/Wedding: Employees are welcome to pool personal money for a card, gift,
flowers, etc.
• Illness/Hospitalization: Employees are welcome to pool personal money for a card, gift,
flowers, etc.
WELLNESS POLICY
October 2022
Purpose
The City of Prior Lake cares about the overall health and well -being of our employees. Not only
is wellness good for the individual, but wellness programs at work help also increase
productivity, boost morale, and improve teamwork. Research shows that empl oyees who are
healthier tend to be more productive in the workplace because they're more rested, energized
and motivated to complete their work to the best of their abilities. The City of Prior Lake
Wellness Program is dedicated to creating opportunities for all employees to make healthier
lifestyle changes to enhance their overall wellbeing. The purpose of this policy is to outline the
specific ways the City has committed to employee wellness.
Wellness Committee
The Wellness Committee is comprised of volunteer Prior Lake employees with the goal of creating
a healthier work force by promoting wellness. The core responsibilities of the Committee include
planning wellness focused interactive and self-paced activities and challenges, to enhance the
four main wellness categories: physical, mental, financial, and social health for an overall
healthier lifestyle.
Wellness Events and Activities
The Wellness Committee will coordinate up to six group activities per year in which employees
can participate as paid time during work hours. In addition to group activities, the committee will
also share multiple self-paced challenges and resources that educate employees about wellness.
Wellness activities may include opportunities for employee awards or incentives to encourage
participation. The Wellness Committee will determine an appropriate award or incentive for each
activity or challenge as outlined in the city’s Purchasing Policy. Award and incentive amounts will
be budgeted and approved by the Assistant City Manager annually. These may be taxable to the
employee if the award value is not considered de minimis, as defined by the IRS.
Wellness Room
The Wellness Room is located at City Hall for use by all employees . The room allows employees
a quiet space to relax, reset, and refresh during the day. Yoga mats, stretching wheels, plants,
and a white noise machine provide opportunities to address both physical and mental health
while using the room. Employees who are not feeling well may use the room to lie down during
their breaks, and the room may be used for private phone calls. The room also serves as a
lactation room for breastfeeding employees as necessary.
Employee Accommodations
If an employee is unable to participate in any of the Wellness Committee activities or achieve any
of the health outcomes required to earn an incen tive, you may be entitled to reasonable
accommodation or alternative standard. Please work with Human Resources on such requests.
WELLNESS POLICY
October 2022
Employee Assistance Program
The city offers an Employee Assistance Program (EAP) through a benefits provider for employees
enrolled in the benefit. EAP is a confidential service that allows employees to engage with
professionals on a variety of personal concerns.
Data Collection
The Wellness Program may use aggregate information it collects to design activities based on
identified health risks in the workplace. The Wellness Program will never disclose any personal
information either publicly or to the employer, except as necessary to respond to a request from
you for reasonable accommodation or as expressly permitted by l aw. Medical information that
personally identifies you that is provided in connection with the wellness program will not be
provided to your supervisors or managers and may never be used to make decisions regarding
your employment.