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Item No. Type of Business: CB WK: Work Session; PH: Public Hearing; CA: Consent Agenda;CB: Council Business City of Mounds View Staff Report To: Mayor and City Council From: Chuck Whiting and Cari Schmidt Item Title/Subject: Resolution 5313 - Chief Tim Ramacher's Severance Package Date of Report: March 2, 1999 As discussed at the March 1, work session, after 28 years of service to the City of Mounds View, Chief Tim Ramacher has announced his retirement. The attached resolution outlines the severance package he has requested: Vacation - The employee will be compensated for 100% of accrued vacation and compensatory time upon separation provided the employee has a minimum of six months continuous employment as a regular employee with the City of Mounds View. (Section 4.35 - Separation Compensation) Under their negotiated union contracts, Patrol officers and Sergeants have an additional option of using 65% of their accumulated sick leave towards their insurance premium for as long as the funds are available until the retiree's 65th birthday. (Section 23 of the 1998 L.E.L.S. contract)' Upon retirement, Chief Ramacher will have approximately 2680 hours of sick leave built up. Although he has requested the use of the union provision of 65% of total sick leave,this would result in a payout of approximately $57,000. After much discussion, an equitable alternative has been proposed. Instead of 2700 hours, 1800 hours would be used in the calculation,resulting in the following: 1 Article 23-Severance Pay 23.1 Severance pay shall be granted in the amount of fifty percent(50%)of unused sick leave to employees who have completed ten years of service. Upon the death of the employee,the beneficiary of the employee shall be paid the benefit. 23.2 Employees who have completed ten years of service and retire may elect,in lieu of severance pay as provided in Section 23.1,to have the employer use sixty five percent(65%)of the employee's accumulated and banked sick leave for the retiree's group insurance premium for as long as the funds are available up to the retiree's 65th birthday.