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HomeMy WebLinkAboutReso 95-265 - Adopting a COR Voluntary Separation Program �. • � RESOLUTION NO. 95-2 6 5 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING ADOPTING A CITY OF REDDING VOLUNTARY SEPARATION PROGRAM. WHEREAS, the proposed Volunteer Separation Program (VSP) would generate significant long-term savings for the City and result in additional efficiencies; and WHEREAS, the VSP would be completely self-funded, and would provide the City with an equitable means to reduce the number of senior and mid-level management positions in the organization; and WHEREAS, it is the recommendation of the City Manager that the City Council establish a City of Redding Voluntary Separation Program as set forth in Exhibit A attached hereto and made a part hereof. NOW, THEREFORE, BE IT RESOLVED that the City Council hereby adopts the attached City of Redding Voluntary Separation Program. I HEREBY CERTIFY that the foregoing Resolution was introduced, read, and adopted at a regular meeting of the City Council on the 21st day of November, 1995, by the following vote: AYES: COUNCILMEMBERS: P . Anderson , R. Anderson , McGeor e Murray NOES: COUNCIL MEMBERS: N o n e a n� �Ce h o e ABSENT: COUNCIL MEMBERS: N o n e ABSTAIN: COUNCIL MEMBERS: N o n e � "��' `�+ DAVID A. HOE, Mayo � � ATTEST: FORM AP OVED: �� r /��� �CZ��% `"� 6 LL 4 C � �. CONNIE ST OHMAYE W. LEONARD WIN (� City Clerk City Attorney ' � ' EXHIBIT "A" . CITY OF REDDING VOLUNTARY SEPARATION PROGRAM 1. The intent of the Voluntary Separation Program (Program) is to reduce the number of senior and mid- level management positions in the City, streamline the organization, and generate long-term financial savings. 2. The Program shall be self-funding, i.e., savings generated as a result of the Program must offset the cost of the Program within three (3) years. The cost of the program is defined as the cost of severance pay, and does not include the cost associated with accrued leave. 3. Participation in the Program by an eligible employee is voluntary. An employee must request to participate in the Program. 4. The Program only applies to the classifications listed on the City's Executive Management Pay-for- Performance Plan. However, public safety employees and employees in the following classifications on the Executive Management Pay-for-Performance Plan are not eligible to participate in the Program: City Manager Assistant City Manager City Attorney Notwithstanding the above, employees in other classifications in the City may be considered for participation in the Program if their position/division has been targeted for elimination/reorganization. Requests from such employees will be considered for urgent and compelling reasons only. Employees who believe that they meet this criteria must receive advance approval from the City Manager to submit an application. The City Manager's decision as to whether such an employee will be allowed to submit an application shall be final. 5. The City Manager mav offer severance pay to a full-time regular employee in return for that employee severing his/her employment relationship with the City. An offer of severance pay shall only be made if it will generate savings for the City. 6. The one-time period for offer and acceptance of the severance pay plan shall be from November 27, 1995, through 5:00 p.m. on December 21, 1995. Employees must separate from City employment by no later than January 26, 1996. 7. The severance pay formula shall be determined by multiplying one week's salary times years of service, not to exceed$25,000. One week's salary is defined as 1.9231 percent of an employee's regular annual salary. Years of service is defined as full-time continuous service with the City, up to and including the last day of employment. 8. Employees who accept severance pay shall not be eligible for unemployment insurance and shall not be eligible for recall rights. 9. Employees who participate in the Program and also choose to retire shall be eligible to participate in the City's group medical insurance program as specified in City Council Resolution 94-340. Employees who participate in the Program but do not choose to retire shall be eligible for COBRA at his/her own expense as provided by law. 10. Upon acceptance of the severance pay offer, the employee agrees to sever any and all rights to City employment, including but not limited to, seniority, lay off, bumping, and recall rights, and all appeal rights to any loss of property rights. This severance and waiver shall be effective upon receipt and acceptance of the severance payment. The severance of employment shall not be construed to be a disciplinary action. � r 1 City of Redding Voluntary Separation Program Page 2 11. The severance payment shall not be included as compensation for the purpose of the Public Employees' Retirement System. 12. At the employee's option, the severance payment may be paid in one lump sum or it may be spread out over a period of time not to exceed three (3) years. If the employee elects to spread out the severance payment, the employee shall not receive interest earnings. 13. The City Manager shall be the final authority on the selection of participants for the Program. 14. Decisions regarding participation in the Program shall not be made on the basis of age, race, sex, color, religion, or national origin. 15. Participation in the program shall be limited to fifteen (15) participants. In the event that more than fifteen (15) employees want to participate in the Program, the City Manager shall select the participants on the basis of which vacancies would generate the greatest long-term savings. 16. The Personnel Division within the Administrative Services Department shall be responsible for administering the Program. 17. Employees may request to participate in the Program by submitting a completed Employee Request Form to the Personnel Division by December 21, 1995. 18. The Personnel Division will notify applicants of the approval or denial of their request, calculate the years of service, salary and severance benefit applicable. The Personnel Division will then have the employee sign the necessary agreement, waiver, and release forms. d:\asd\95-116.ks/It 11/08/95-10:06 a.m.