CCP 03-24-2009 - Laserfiche WebLink

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or more years of service with the City and has 960 hours or less of accrued sick leave in their account, the employee is eligible to receive 40% of their accrued sick leave (Maximum of 384 hours) in the form of an EMPLOYER contribution into the employee's post-retirement health savings plan, subject to the provisions of the plan. Effective upon the ratification of this contract, UNION members who have banked sick leave accounts shall receive a buyout from the City on a 3 to 1 basis. For every three hours of sick leave that the employee has accrued in his/her secondary sick leave bank, the employee shall be compensated for one hour of pay. The eligible employees shall receive the secondary sick leave bank buyout in the form of a City contribution into the employee's post retirement health savings plan, subject to the provisions of the plan. Once the final buyout has been completed by the EMPLOYER, UNION members will not be allowed to create a secondary sick leave bank account. Under the 200'-2008 contract language, the City of New Brighton has projected its financial liability for sick leave severance (contribution to Retirement Health Savings Accounts) for the City's fourteen (14) maintenance workers would be approximately $51,284. The new contract adds additional sick leave compensation steps for an employee that is leaving the City in good standing after twenty years of service (Please see section 24.1 of the proposed contract). The City of New Brighton currently has six maintenance workers that have over 20 years of experience and the City's present liability is roughly $56,210. Any employee that leaves the City in good standing after ten years of service, would be entitled to receive 40% of their accrued sick leave hours. At this time, the City of New Brighton has two employees that would be eligible to receive 40% of their sick leave balance at a projected cost of $10,282.46. Local No. 320 employees that are eligible for a sick leave severance would receive a contribution from the City to their retirement health savings account in lieu of a cash payout. A second provision in the proposed union contract would allow Local #320 members to receive a one time buyout of their secondary sick leave bank hours. For every three hours of sick leave that the employee has accrued in his/her secondary sick leave bank, the employee would be compensated for one hour of pay. The eligible employees would receive the secondary sick leave bank buyout in the form of a City contribution into the employee's post retirement health savings account. The projected pay out of the secondary sick leave bank would be roughly $4,109. In the future, Local No. 320 members will not be allowed to create secondary sick leave bank accounts. Overall, the City's financial liability from the sick leave severance language was roughly 51,284 in 2008. In 2009, due to the proposed changes in the union contract the City's sick leave severance liability would increase to $66,492 but the City would be able to offset some of these additional cost by eliminating the secondary sick leave bank which equates to a savings of $12,328. Overall, the City's sick leave severance liability would be $54,164 The value of this benefit increases each time the employee receives a pay increase, but the City's liability is also reduced due to the fact that employees retire or leave the organization at various times. Administration of the sick leave bank is also made much easier due to not having two banks that operate with different rules; managing their balances so that the practice is fair to all parties. City will benefit in the long-term due to these changes. L\COUNCIL\REPOKI"5\2009\Admin\Local 320 Maintenance Workers Contracttdoc