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6.3D <br /> Page 1 <br /> REPORT <br /> To the Honorable Mayor and City Council <br /> From the City Manager <br /> February 7, 2011 <br /> SUBJECT <br /> Mid -year budget amendment and authorization for City Manager to offer an exit <br /> incentive program to unrepresented employees. <br /> RECOMMENDATION <br /> Approve by resolution position eliminations from the FY 10 -11 budget and authorize the <br /> City Manager to offer the City's Exit Incentive Program (EIP) to unrepresented <br /> employees of the City. <br /> BACKGROUND <br /> In December of 2010, the City received its California Public Employee Retirement <br /> System (PERS) rates for the next two fiscal years. These costs are $720,000 more <br /> than what was projected in the budget. During its study session on January 10, 2011, <br /> the City Council discussed the need for the organization to examine reductions in <br /> staffing with the goal of preserving critical service areas. Within the City Manager's <br /> Department, it has been determined that the duties of the Deputy City Manager may be <br /> redistributed among the City Manager, administrative staff and other departments. <br /> Some programs will also be eliminated. There have been no position reductions in this <br /> department during across the board reductions that have taken place during the last two <br /> years. In addition, the Public Works Services Department also identified reductions. <br /> The following staffing reductions are proposed at this time: <br /> City Manager's Office: <br /> Deputy City Manager (1.0 FTE) <br /> Public Works Services Department: <br /> Administrative Assistant (1.0 FTE) <br /> Public Works Supervisor (1.0 FTE) <br /> Equipment Service Worker (1.0 FTE) <br /> The position in the City Manager's Office is filled and will result in a layoff. The <br /> positions in the Public Works Services Department are vacant. There may be an <br /> additional reduction in a department this fiscal year, but the department is still analyzing <br /> that position and will bring a recommendation to Council in March. <br /> These reductions are expected to result in annualized savings of approximately <br /> 603,000. Additional reductions to address the FY 2010 -2011 deficit are under review <br /> and will be presented to the Council at a future City Council Meeting. <br /> Over the past several years, in exchange for a salary freeze and pension concessions, <br /> represented City employees were offered an EIP to help offset the impacts associated <br />