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Mounds View City Council March 8, 1999 Regular Meeting Page 15 percent of their accrued vacation, and one-half of their accrued sick leave, not to exceed 480 hours.” He stated it was his understanding that this agreement that was valid for the Police Chief. City Administrator Whiting stated that was correct. He indicated he was not pleased, as this memorandum had not been discussed with him, prior to the meeting. He explained that he, his Assistant, and the Finance Director were not on the same page as they came before the City Council with this request. He stated this is something he would like to avoid, as staff should have a mutual understanding of the matter, prior to coming to the Council, rather than having to explain their different interpretations. He extended his apologies to the Council, adding that he was disappointed in this. City Administrator Whiting stated this was the Finance Director’s interpretation, and it could be interpreted in this manner, even in the collective bargaining contracts. He advised however, having been the staff person who negotiated these points, with a member of the Finance staff in the meeting at those times, this was not his interpretation of the proposal he had actually made. He stated there were internal differences that must be rectified, in order to know what the City’s liability truly is, and the balance of this matter depends upon the decision made by the Council, in terms of whether or not they decide to proceed with this option. He advised that the Council could certainly make this matter contingent upon reviewing the question regarding liability, if desired, and have this item brought back before them at their next meeting, or the Council may decide that it would rather not proceed with this option. Council Member Stigney stated the Council had received another memorandum from Assistant to the City Administrator Schmidt, dated February 16, which indicates “Sick Leave: Severance pay shall be granted in the amount of 50 percent of unused sick leave to employees who have completed 10 years of sick leave. Maximum accumulation of sick leave is 120 days. (960 hours) Additional banked sick leave hours will not be computed in severance pay.” He stated, he had understood they were considering alternatives to somehow cover the Police Chief under the Union Negotiation, in that this memorandum states “Although Chief Ramacher is not a member of the Union he would like to utilize this provision for his severance pay.” Council Member Stigney pointed out that Chief Ramacher is not a member of the Union, and has not paid dues in the union, therefore, he does not believe he would fall under the blanket of that Union provision. He indicated that once Chief Ramacher went from patrol officer to Police Chief, he altered his status as a Union employee, and became an exempt management employee. He explained that at that time, Chief Ramacher would have fallen under the 960 hours maximum sick leave accrual, which when divided by two, would translate to $15,676.80, which he is entitled to. Council Member Stigney stated secondarily, the City does not really have any retired employees, and the discussion indicates that this is not a very good policy, and there are other things they should be considering, however, staff would like to proceed with this prior to doing so. He advised that once they proceed with a proposal of this nature, they are, in his opinion, setting a precedent. He explained that a retiree, up to age 65, drawing on the employee benefits program for health insurance, would affect the rates for all employees. He indicated that at his place of employment, the retirees are set out in a separate classification, with higher insurance premium rates than the employees, who are generally younger, and in better health.