Minutes - 2005/08/08 - Laserfiche WebLink

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Mounds View City Council August 8, 2005 Regular Meeting Page 16 • severance as well as allowing the employees to utilize accumulated sick time and flex time noting that each employee would be given an additional severance payment that would consist of one week of pay for each complete year of service. He stated that as of January 1, 2006 one employee would have nine years of completed service and the other two employees would have three years of completed service. City Administrator Ulrich provided the Council with a packet of information for each employee noting that Staff had $50,000.00 budgeted in the proforma for the Medtronic project to cover the severance packages. He explained that he had tried to project this as a `most cost' situation in terms of the most the City could expect to pay. He further explained that based on historical records the flex-time for these employees tends to extend until approximately March 1St adding that the overall total payout, based on the vacation, the flex-time severance payout, the 50- percent sick time payout up to a maximum of 960 hours, and a one week/per year of service payout, for all three employees would be $54,956.00. He noted that the current numbers are based on the employees working until December 31, 2005 and indicated that this amount could be reduced if the severance date is adjusted to either October or November 1St. He stated that an actual end date has not been determined yet noting that he anticipates the need to keep the employees on through the shutdown process, as they would need their help to resolve the disposition of the equipment and in closing the books. He stated that this would be the `most cost' scenario that could be envisioned based upon the resolution presented to Council this evening and recommended its' consideration and approval. • Council Member Flaherty asked what the City's policy is for carryover of vacation time. City Administrator Ulrich stated that there is a maximum carryover limit of two weeks over the accrual rate. He stated that some of the carryover would have to be used by the end of the year. Mayor Marty clarified that this is not the actual highest rate and asked if it could end up lower than what is proposed. City Administrator Ulrich confirmed stating that it would depend on the actual termination date adding that as things wind down there would be fewer hours accrued during that time period. Council Member Thomas stated that her biggest concern is the payout of one week per year of service on what the City is actually doing. She stated that this would be approximately five months of paid severance time in addition to the cash out. She expressed concerns stating that they are talking about a lot of time, a total of 15 weeks. She stated that her point is the City paying severance to people who might have another job. City Administrator Ulrich noted that the sick time and vacation time would still be paid out whether they left tomorrow to go to another golf course or through this process. Council Member Gunn stated that this is the same kind of severance package that was used during the layoffs that occurred during her time at UNISYS. She stated that this is a basically normal type of package if based on industry standards.