Approval of settlement agreement with Teamsters Local No. 320 in an amount not to exceed $20,684.90, payable upon execution of a memorandum of understanding between the city and teamsters by appropriate city officials.

Approve policy/actions as requested.

In November 2017, Human Resources was implementing the newly approved contract with the Teamsters Local No. 320, when we discovered a problem with the system.

Entries were being made into the HRIS system, and it was discovered that the Health Care Savings Plan (HCSP) calculations had not been updated for the 2014 - 2016 contract. Essentially, the employees were not getting the correct amount deducted from their paychecks to go into their HCSP accounts. For example, an employee who has been employed with the City of Shakopee for more than 10 years, should have had 3% deducted from their paycheck and automatically deposited in their HCSP account - however, the calculation only deducted 1.5%. 

HR notified the affected Public Works employees immediately, and we have worked through a solution with the Teamsters Local No. 320 leadership. The Teamsters Local No. 320 leadership has provided us with a breakdown of how the settlement will be paid out. The total of the settlement is $20,684.90.