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HomeMy WebLinkAbout2010 06-08 CC CDC ADJ AGENDA PKTAgenda of an Adjourned Regular Meeting Budget Workshop National City City Council / Community Development Commission of the City of National City Council Chambers 1243 National City Boulevard National City, California Tuesday, June 8, 2010 - 6:00 p.m. Open To the Public Your City Council strives to be receptive to your concerns and comments. Your participation in local government will assure a responsible and efficient City of National City. We invite you to bring to bring forward any matter that you desire the City Council to consider. We thank you for your presence and appreciate your involvement. ROLL CALL NON CONSENT RESOLUTION 1. Resolution of the City Council of the City of National City authorizing the City Manager to implement a one-time incentive based voluntary separation program for eligible full-time, career employees of the City of National City. (Human Resources) BUDGET WORKSHOP 2. Introduction 3. General Fund Budget Summation a. Reserves & Expenditures b. Fund Balance & Reserves c. Overview of General Fund Budget Reduction Plan COUNCIL AGENDA 6/8/2010 PAGE 2 4. CDC Budget Summation a. Revenues & Expenditures i. Tax Increment ii. Housing Set Aside iii. Section 8 5. Public Comments 6. Council Comments ADJOURNMENT Dispensing of the Regular City Council and Community Development Commission Meeting of June 15, 2010 and Adjourning to an Adjourned Regular City Council and Community Development Commission Meeting - Tuesday — June 22, 2010 - 6:00 p.m. - Council Chambers - National City, California. Next Regular Adjourned City Council/Community Development Commission Meeting — Tuesday — June 22, 2010 - 6:00 p.m. — Council Chambers, Civic Center Upon request, this agenda can be made available in appropriate alternative formats to persons with a disability in compliance with the Americans with Disabilities Act. Please contact the City Clerk's Office at (619) 336-4228 to request a disability -related modification or accommodation. Notification 24-hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. Spanish audio interpretation is provided during Council and Community Development Commission Meetings. Audio headphones are available in the lobby at the beginning of the meetings. Audio interpretation en espanol se proporciona durante sesiones del Consejo Municipal. Los audiofonos estan disponibles en el pasillo al principio de la junta. Council Requests That All Cell Phones And Pagers Be Turned Off During City Council Meetings ------- - --------------------- COPIES OF THE CITY COUNCIL OR COMMUNITY DEVELOPMENT COMMISSION MEETING AGENDAS AND MINUTES MAY BE OBTAINED THROUGH OUR WEBSITE AT www.nationalcitvca.gov CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: June 8, 2010 AGENDA ITEM NO. ITEM TITLE: Resolution Of The City Council Of National City Authorizing The City Manager To Implement A One - Time Incentive Based Voluntary Separation Program For Eligible Full -Time, Career Employees Of The City Of National City. PREPARED BY: Stacey Stevenson DEPARTMENT: PHONE: 336-4308 APPROVED See Attached Staff Report B FINANCIAL STATEMENT: ACCOUNT NO. APPROVED: APPROVED: Finance MIS Per Council direction at the May 25, 2010 budget workshop, the $ 1 million will be set aside from the General Fund's Contingency Reserves. ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: STAFF RECOMMENDATION: Recommend approval of resolution BOARD / COMMISSION RECOMMENDATION: ATTACHMENTS: Resolution Memorandum — City Manager Employee Voluntary Separation Program Announcement eau. FORNIA +-s- X a CITY OF NATIONAI, CITY MEMORANDUM DATE: June 8, 2010 TO: Honorable Mayor and City Council FROM: Stacey Stevenson, Director of Human Resources SUBJECT: Staff Report — Related to Resolution Of The City Council Of National City Authorizing The City Manager To Implement A One -Time Incentive Based Voluntary Separation Program For Eligible Full -Time, Career Employees Of The City Of National City. Introduction To create on -going personnel related savings, the City Council authorized an expenditure of up to $1 million to incentivize eligible full-time, career employees of the City of National City to voluntarily separate. On -going savings realized would be related to the savings in base salary and benefits, including escalating health care and retirement costs, from the positions or ancillary positions that are vacated as a result of the voluntary separation. 'This report defines the proposed voluntary separation program and staffs recommendation for its adoption. Background In response to the City's projected structural deficit, on May 25, 2010, the City Manager presented the City Council with a menu of cost saving suggestions developed by employees, employee labor associations and management. Suggestions were grouped in three tiers: Tier One represented suggestions that were recommended by the City Manager for adoption; Tier Two represented suggestions requiring further analysis; and Tier Three represented suggestions that are not recommended at this time by the City Manager. Hearing the City Council's interest in further review and refinement of Tier One, the City Manager directed staff to further develop the concepts contained therein, including the suggestion to implement an incentive based retirement program. Discussion After further review and consideration, staff has developed a model program through which employees have the option of resigning or retiring from the City of National City during a specified time period in return for a modest economic benefit. The program includes a two pronged approach, offering eligible employees the opportunity to retire through the California Public Employee Retirement System (Ca1PERS) with two additional years of service credit purchased by the City. For those employees that are not eligible to formally retire or for whom additional service credit do not offer an enhanced retirement benefit, the program includes an Honorable Mayor and City Council Staff Report to Enact an Incentive Based Voluntary Separation Program June 8, 2010 Page 2 option to receive a one time cash payment and one year of medical benefits equal to those offered to active employees (dependents will not be covered). Both components include minimum eligibility requirements. Beyond, the minimum eligibility requirements, an employee's ability to participate in the program will be left to the ultimate discretion of the City Manager. The details of the program are addressed in the attached employee announcement. Recommendation Authorize the City Manager to implement the proposed Voluntary Separation Program. Economic Impact In order to achieve cost savings, the program is limited to employees in positions where retirement or separation can result in the reduction of a position or an ancillary position. Employees in positions that would have to be retained or refilled may not be eligible, at the discretion of the City Manager. Up to $1 million dollars is allocated for payment of the incentives associated with this proposed program. Applications will be accepted on a first come first served basis up to the $1 million threshold. Priority in approval of applications may be given to applicants based on but not limited to such factors as whether the position or an ancillary position can be eliminated; positions rendering greater cost savings; an incumbent's number of years of service with National City, with priority typically given to employees with a greater number of years. Savin v. realized will be the difference between the cost of the incentives and the fully lo. . ed rate of e vacated positions. Attachment: Employee Voluntary Separation Program Announcement RESOLUTION NO. 2010 — 121 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE CITY MANAGER TO IMPLEMENT A ONE-TIME INCENTIVE -BASED VOLUNTARY SEPARATION PROGRAM FOR ELIGIBLE FULL-TIME, CAREER EMPLOYEES OF THE CITY OF NATIONAL CITY WHEREAS, in response to the City's projected structural deficit, on May 25, 2010, the City Manager presented the City Council with a menu of cost -saving suggestions developed by employees, employee labor associations, and management; and WHEREAS, to create on -going personnel related savings, the City Council authorized an expenditure of up to $1 million to incentivize eligible full-time, career employees of the City of National City to voluntarily separate from City employment; and WHEREAS, based upon the direction of the City Council, staff has developed a model program through which employees have the option of resigning or retiring from the City during a specified time period in return for a modest economic benefit; and WHEREAS, the model program is designed to create savings and eligibility will include consideration of the extent of the cost savings achieved. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby authorizes the City Manager to implement a one-time incentive -based voluntary separation program for eligible full-time, career employees of the City, described generally as follows: A. RETIREMENT INCENTIVE PROGRAM Any eligible employee, approved by the City Manager, to voluntarily retire from the City between June 24, 2010 and September 20, 2010 shall receive two additional years of service credit with the California Public Employee Retirement System (CaIPERS). Employees are eligible for this program if they have completed at least five (5) full years of service in a full-time, benefited, career position, are at least 50 years of age and eligible to retire through CaIPERS within the defined window period. B. VOLUNTARY SEPARATION PROGRAM Any employee who, as determined by the City Manger assists in achieving cost savings through the elimination of a position or ancillary position, is approved to voluntarily resign, from the City between June 24, 2010 and September 20, 2010 shall receive a cash incentive. The cash incentive for individual employees will equal $5,000 plus $1,000 for each year of service with the City of National City as of the employee's effective date of separation. The City Manager will make the determinations for eligibility based on the cost savings achieved. --- Signature Page to Follow --- Resolution No. 2010-121 Page 2 PASSED and ADOPTED this 8th day of June, 20010. Ron Morrison, Mayor ATTEST: Michael R. Della, City Clerk APPROVED AS TO FORM: George H. Eiser, III City Attorney - * CALIF°RRl/1 - NATIZ" INCORPORATED CITY OF NATIONAL CITY MEMORANDUM DATE: June 9, 2010 TO: All City Employees FROM: Chris Zapata, City Manager SUBJECT: Employee Voluntary Separation Program Announcement The City of National City announces a one-time Voluntary Separation Program that will provide eligible employees with incentives for either a voluntary retirement or separation from City service. In addressing the City of National City's projected structural budget deficit, the City has explored several suggestions for savings submitted by employees, employee labor associations and management. The Voluntary Separation Program contained herein is one of many suggestions accepted by my office and approved by the City Council. In order to achieve cost savings, the program is limited to employees in positions where retirement or separation can result in the reduction of a position or an ancillary position. Employees in positions that would have to be retained or refilled may not be eligible. This memorandum provides important information regarding eligibility and timelines for participation. It is important to read this information thoroughly. THE PROGRAM A. RETIREMENT INCENTIVE PROGRAM Any eligible employee who has been approved by the City Manager to voluntarily retire from the City between June 24, 2010 and September 20, 2010 shall receive two additional years of service credit with the California Public Employee Retirement System (Ca1PERS). Employees are eligible for this program if they have completed at least five (5) full years of service in a benefitted, career position, are at least 50 years of age and eligible to retire through Ca1PERS within the defined window period. B. VOLUNTARY SEPARATION PROGRAM Any employee who is approved to voluntarily resign from the City between June 24, 2010 and September 20, 2010 shall receive a cash incentive. The cash incentive for individual employees will equal $5,000 plus an additional $1,000 for each year of service with the City of National City as of the employee's effective date of separation. In addition, employees opting to voluntarily resign may continue employee only health care for a period of twelve months from separation at a level equal to current active employees. Employees are eligible for this program if they have completed at least five (5) full years of service in a benefitted, career position. Employees interested in exercising either option must complete and return the attached application form to the Human Resources Department. Applications must be filed between June 14, 2010 and July 28, 2010*. Please note: 1. Approval to participate in this program is subject to the approval of the City Manager. The City Manager's decision is final and non -appealable. Factors that the City Manager may consider in granting priority for participation in the program may include but are not limited to: whether the position or an ancillary position can be eliminated; positions rendering greater cost savings; an incumbent's number of years of service with National City, with priority typically given to employees with a greater number of years. 2. The incentives associated with the Voluntary Separation Program are subject to all applicable taxes. The $5,000 and the additional $1,000 for each year of service represent the City's payment prior the withholding of any applicable taxes. 3. Employees participating in the Voluntary Separation Program may select to place some or all of the value of the cash incentive in a 457 (deferred compensation) account subject to applicable deposit limits governing such programs. 4. A monetary cap has been placed on the incentive program. Applications will be processed on a first come, first served basis. If the number of approved applications reaches the cap prior to the end of the eligibility period, all additional applications will be placed on a waiting list. Employees will be notified of their individual status in writing. 5. Employees participating in either voluntary separation option shall be required to sign a Separation Agreement and Release of All Claims provided by the City within ten (10) days of receiving notification of approval to participate in the program. TIMELINE June 14 Application filing period begins June 24 First day employees are eligible to retire or separate July 28 Deadline to apply* September 20 Retirements or separations effective no later than September 20, 2010 If you have any questions, contact Stacey Stevenson, Human Resources Director at (619) 336- 4308 or sstevenson@nationalcityca.gov. * The deadline to apply may be extended at the discretion of the City Manager. All City Employees Voluntary Separation Program Announcement June 9, 2010 Page 3 Attachments: Employee Voluntary Separation Program Application Separation Agreement and Release of All Claims (PREVIEW COPY)