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Mounds View City Council June 12, 2006 <br />Regular Meeting Page 19 <br /> <br /> 1 <br />It was noted that three affirmative votes are required for approval of this item. 2 <br /> 3 <br />N. Resolution 6849 Resolution Authorizing Severance Package for William 4 <br />Hanggi, Mounds View Public Works Lead Utility Worker. 5 <br /> 6 <br />Assistant to the City Administrator Crane stated that William Hanggi has retired from the 7 <br />Mounds View Public Works Department effective May 31, 2006 and Resolution 6849 authorizes 8 <br />severance payment to William Hanggi. She stated these payments are in accordance with the 9 <br />Mounds View Personnel manual and the current Public Works Bargaining Agreement. 10 <br /> 11 <br />Assistant to the City Administrator Crane stated that Resolution 6849 provides a cash payout for 12 <br />Mr. Hanggi’s compensatory time hours of $1,212 (50 hours comp time x $24.24 hourly wage). 13 <br />She explained that this is in accordance with the current Public Works Collective Bargaining 14 <br />Agreement. 15 <br /> 16 <br />Assistant to the City Administrator Crane stated that Resolution 6849 provides a payout of Mr. 17 <br />Hanggi’s vacation hours. She stated that in accordance with the current Public Works Collective 18 <br />Bargaining Agreement, Mr. Hanggi is eligible to contribute accrued vacation time towards the 19 <br />Retirement Health Savings Plan. She explained this is calculated as 302.19 hours times his 20 <br />hourly salary of $24.24, which equates to $7,325.09 contribution to the Retirement Health 21 <br />Savings Plan. 22 <br /> 23 <br />Assistant to the City Administrator Crane stated Resolution 6849 also provides for a payout of 24 <br />Mr. Hanggi’s sick time. She stated that in accordance with the Public Works Collective 25 <br />Bargaining Agreement, he is eligible to contribute 65% of his accumulate and banked sick leave 26 <br />for contribution to the employee Retirement Health Savings Plan. She stated this is calculated as 27 <br />973.16 accrued/banked sick hours times 65% times his hourly rate of $24.24. She explained this 28 <br />comes to $15,333.01 to be contributed to the Retirement Health Savings Plan. 29 <br /> 30 <br />Assistant to the City Administrator Crane stated that Staff recommends severance payment and 31 <br />contribution to the Retirement Health Savings Plan for William Hanggi in accordance with the 32 <br />City’s Personnel Manual and current Public Works Collective Bargaining Agreement. She 33 <br />explained that this Severance Package may be adjusted at a later date pending the ratification of 34 <br />the 2006 – 2007 Public Works Contract. She stated that if the Severance Package is adjusted, 35 <br />then it will be presented at a City Council meeting with approval by Resolution. 36 <br /> 37 <br />Councilmember Flaherty stated that every time this issue comes up, he asks if anybody ever takes 38 <br />sick hours and wondered if it was more like a savings account. He stated people retire and have 39 <br />large amounts of hours accrued in sick time and he can’t believe that nobody gets sick. 40 <br /> 41 <br />Administrator Ulrich stated that Mr. Hanggi was a 33-year employee, that the contracts were 42 <br />negotiated to only allow 50% of a maximum of 960 hours. Mr. Hanggi is the last of the Public 43 <br />works employees to be grandfathered in at the higher 65% rate. 44 <br /> 45