3.4. SR 09-06-2005
Item #3.4.
MEMORANDUM
TO: Mayor and City Council
FROM: Lori Johnson, Finance and Administrative Services Director
DATE: September 6, 2005
SUBJECT: Sick Leave Severance
TIle City's Personnel Policy includes a provision on Severance Pay. Elnployees \Vl10 resign
in good standing after \'\70rking a lninitnum of fi\re years of service recei\re a small portion of
their unused sick lea\re in pay. BotIl tlle union and non-union elnployees receiv"e this benefit.
Tile benefit le\Tels 11a\Te typicall~y been tlle salne for union and non-union employees.
Effecti\Te \vitIl the Janual;i 1,2005, patrol union contract, tlleir se\Terance pay benefit ,,\Tas
increased by adding a pro\rision for employees \vho resign in good standing after nventy
years of sel'\lice. TIle intent \vas that dus prov'ision apply to all elnployees and that it \vould
be added to tlle personnel policy. HO\Ve\Ter, tllat cl1ange has not yet been made because it
\vas going to be made as part of tlle cOlnprel1ensi\Te re\rie\v and update of tlle personnel
policy. Since that rev"ie\v and update has not been completed, it is appropriate to appro\Te
this policy cllange no\v as tllere are sev-eral elnployees \vl10 are affected by dus pro\Tision.
Belo,\; is tlle proposed ne\v language for tile Se\Terance Pay section of tlle personnel policy.
The only change is tlle addition of the last paragrapll (item 4. under tile payment provision)
tllat allo\vs for tile paYlnent of 25 percent or up to 240 Ilours of unused sick lea\Te for
elnployees \vl10 Ila\Te completed t\venty years of service. Tile current payment is a maximum
of 20 percent or up to 192 llours for employees \vl10 hav"e completed fifteen years of service.
Proposed ne\v Se\rerance Pay section:
SEVERANCE PAY
.L'\n eluployee resigning lus/ller eluployment \vith tlle City lnay be eligible for a casl1 payment
for unused sick leav^e if tlle follo\ving conditions are met:
1. The employee must resign in good standing (not terminated by the
City); and
2. The employee must pro\Tide proper \vritten notice of his/her
resignation (see Resignation Policy abo\Te); and
3. Employees hired before 'rvlarch 1, 2000, must Ilave \vorked for the
City for at least t\vo (2) consecuti've years. Employees llired on or
after r:vIarcll 1, 2000 lnust hav'e \vorked for tlle city for at least fi'\re (5)
consecuti"\Te years; and
4. TIle elnployee must execute a release of claims.
Payment sllall be based on tlle consecuti\Te years of sel,,\Tice completed by the
employree and Ius/her acclued sick lea\Te balance.
1. .!~n employee l1ired before rvIarcll 1, 2000, and terminating after
completing nvo (2) years of consecutive set"'7ice \vill recei\Te payment
for fifteen percent (15010) of lus/l1er accumulated sick lea\Te balance
up to a maximum payment for one 11undred forty-four (144) Ilours.
Payment sllall be at tlle current rate of pay.
2. .L~n employee hired on or after rvIarcll 1, 2000, and terminating after
completing fi\Te (5) years of consecutiv"e service \\'111 recei'<;le paYlnent
for fifteen percent (15010) of Ius/her accumulated sick leav'e balance
up to a maxilnum paYlnent for one hundred forty-four (144) 110urS.
Payment sllall be at tlle current rate of pay.
3. .L\n employee terlninating after cOlnpleting fifteen (15) years of
consecuti\re service \vill receive payment for t\venty percent (200/0) of
his/her accumulated sick leav'e balance up to a maxilnU1TI payment
for one l1undred ninety-n'vo (192) Ilours. Payment shall be at tlle
current rate of pay.
4. .L\n employee terminating after completing t:\venty (20) years of
consecuti've service \vill recei\re payment for t\venty-fiv~e percent
(25010) of lus/l1er accumulated sick lea\re balance up to a maximum
payment of nvo Ilundred forty (240) Ilours of pay. Payment shall be
at dle current rate of pay.
Action Requested
TIle Council is asked to consider adding item 4 under tlle payment pro\Tision to tile
Severance Pay section of tlle City Personnel Policy as proposed in the language abo\re.