EDITOR’S NOTE: This is the first of a two-part series on the Port Angeles city’s cash-out policy.
PORT ANGELES — When Craig Knutson and Scott McLain left their jobs at the city of Port Angeles, they received more than just a handshake and expressions of goodwill.
They both received checks for more than $50,000.
The money came from sick and vacation time they never took, and they’re not alone.
Over the past nine years, the city has spent $1.4 million compensating 205 employees for unused leave, a Peninsula Daily News investigation found, with the largest checks being cashed upon the end of employment, typically retirement.
Knutson, a former city attorney, and McLain, a former power systems manager, received the largest payments since 2003.
Both had been with the city for more than 25 years and received the benefits of a policy that allows leave, either sick or vacation time, to accrue year after year for managers with almost no limits.
That policy is now the focus of a State Patrol investigation into potential misuse, more specifically, whether Finance Director Yvonne Ziomkowski broke state law by cashing out 69 days of her own vacation — worth $28,867 — above what city policy allows.
She allegedly approved many of the cash-outs, from 2009 through 2011, herself. She has pledged to repay the money.
Ziomkowski’s cash-outs, which totalled 896 hours, or 112 days during that time period, far exceeded the city’s policy, which allows between 80 and 120 hours of leave annually to be cashed or reserved for retirement.
Cash-outs policy
Yet, as cash-outs to McLain and Knutson show, the largest payments at City Hall are not the result of alleged impropriety but a matter of policy.
Although they can receive compensation for unused leave on an annual basis, city staff receive payment for any vacation and sick time on the books when their employment ends, even if they are fired.
When McLain retired in 2008, he received $56,289 for 144 sick days and 118 vacation days.
Knutson received a bit less, $50,420, for 135 days of general leave when he left in 2004.
McLain and Knutson, now attorney for the city of Burien, did not return requests for comment.
Both had reached the limit of how much vacation they could receive each year.
McLain was receiving five weeks of vacation a year when he retired, while Knutson was receiving 8.6 weeks of general leave, a combination of sick and vacation time, when he left.
The city has made recent efforts to control cash-outs in the wake of the finance director’s overpayments, including limiting them to one per year and requiring approval from human resources and the city manager, but the policy of allowing unused leave to accumulate remains unchanged.
City Manager Kent Myers referred to the policy as standard practice for public entities but is sticking to his pledge to recommend the City Council review the policy.
“I don’t think what we are doing is unusual versus what other cities are doing,” he said.
Mayor Cherie Kidd declined to comment on the payments, or the city’s current policy, because of the ongoing State Patrol investigation but also said the City Council will take a close look at it.
“We’re looking for areas that we can make positive changes and conserve our finances,” she said.
“Now this is an area that we are very seriously looking at.”
The State Patrol is conducting the investigation, which started Jan. 6, at the request of Clallam County Prosecuting Attorney Deb Kelly.
Details of payments
The city’s leave policy puts no limits on how much leave administrators can accumulate, but it reduces payments of any vacation time over 120 days to 25 percent of their salary.
That has been the policy since 1993. Previously, administrators could only be paid for unused leave up to 120 days.
The current policy put administrators in line with mid-level managers, who are limited to 120 days of vacation and paid 25 percent of their accrued sick leave.
Administrators get general leave rather than separate sick and vacation time.
Union members, on the other hand, are limited to twice their annual leave and 25 percent of their sick leave.
Large work load
Myers said city employees accumulate so much leave because of a hefty workload.
“It’s really hard to take time off when we got so many projects going on and so many deadlines to meet,” he said.
Myers deferred questions to the City Council regarding whether it is in the public’s interest to allow leave to roll over year after year.
He said he expects the council to review the cost of the city’s leave policy along with its other labor costs, including salary and benefits.
“Is it financially prudent to have the health benefits we have?” Myers asked.
“I think we have to look at a lot of issues regarding salary and benefits.”
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Reporter Tom Callis can be reached at 360-417-3532 or at tom.callis@peninsuladailynews.com.
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ON MONDAY: Port Angeles City Finance Director Yvonne Ziomkowski has pledged to repay the $28,867 she overdrew by cashing out unused leave, but she can expect to get at least some of that back.
