AgdaPkt 2011-02-07 - Laserfiche WebLink

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6.3D 22 with layoff due to restructuring and budget reductions. The EIP allowed retirement - eligible represented employees in designated bargaining units to receive funding to buy up to 24 months of service credit from CaIPERS. Unrepresented employees have not been eligible for this program because generally the savings associated with the long -term concessions of an entire bargaining unit are more significant than when compared with the savings effectuated by eliminating one position. However, given the continuing fiscal challenges and the need to make further reductions, it is proposed that the City Manager be authorized to offer unrepresented employees funding equal to 7 months of salary credit through the Exit Incentive Program from CaIPERS. The EIP would be available to unrepresented employees of the City who are facing position elimination and also to unrepresented employees to incentive voluntary reductions in force where the City Manager finds that the reduction would generate savings within the classification, department, or organization. When considering offering the EIP, the following criteria will be used in determining the number of months to grant: the level and salary of the position and the savings benefit to the organization. All employees who participate in the EIP are also required to execute a release agreement with the City waiving all potential claims except workers compensation, which by law is handled through a separate system. This provides the City both with legal and financial certainty that there are no future un- asserted claims and liabilities as a result of the reduction. FISCAL IMPACT The position reductions will result in annualized cost savings of approximately $603,000, of which $348,000 are general fund reductions. The reductions, together with additional cuts to be presented at a future Council meeting, are intended to produce annualized savings equal to the $720,000 in additional PERS costs. Costs associated with the EIP to unrepresented employees will vary depending on the positions involved. EIP costs will be offset by long -term savings. ALTERNATIVES 1. The Council could advise staff to make further evaluation and recommend alternative organizational structure and /or classification changes to meet the estimated budget deficit for this fiscal year. 2. The Council could make no position reductions at this time and allocate funds from reserves to cover the estimated budget deficit for this fiscal year. Late Gary 'J►gers J obert B. Bell Interim Human Resources Director Interim City Manager ATTACHMENTS 1. Resolution RELATED DOCUMENTS IN CITY CLERK'S OFFICE None