To: Honorable Mayor and Members of City Council
From: Jennifer Brizel, Human Resources Director
Prepared By: Jennifer Brizel, Human Resources Director
TITLE:
Title
Voluntary Separation Program
LABEL
RECOMMENDED ACTION:
Recommendation
Adopt a resolution authorizing the City Manager to Implement a Voluntary Separation Program.
Body
DISCUSSION:
In order to meet budgetary demands as a result of revenue loss due to COVID-19, staff requests approval to implement a program as an incentive for eligible employees to voluntarily separate from employment by the end of this fiscal year. The Voluntary Separation Program is meant to achieve the following objectives:
• Reduce salary and benefit costs in anticipation of fiscal challenges.
• Redirect positions to focus on priorities, changing needs or strategic objectives.
• Achieve cost savings and/or greater organizational efficiencies
• Minimize potential involuntary separations.
The Voluntary Separation Program allows the City to offer employees a one-time lump sum payment equivalent to 12 weeks of salary to a maximum of $40,000 as an incentive to voluntarily separate. The City may offer employees this incentive who volunteer to separate by resignation or retirement.
Vacated positions are intended to result in a net decrease in costs to the City for the vacated positions. Departments may request to fill positions through a) promotional recruitments or b) open recruitments, if skills-sets are not identifiable through promotional recruitment methods and determined to be in the best long-term fiscal interest of the City. Requests for open recruitments must be approved by the City Manager.
The Voluntary Separation Program is not an entitlement or benefit, but rather is intended to supplement the range of budget management options available to the City. Not every individual application will be approved as requests will be considered by their department on a case-by-case basis to determine the impact and the ability to achieve long-term savings.
Employees must be in a full-time position and have completed a Voluntary Separation Program Application. Employee ineligibility includes: employees holding critical positions identified within departments to maintain minimum staffing levels; Probationary employees; Limited-Term employee, Retired Annuitants, PT/Extra-Help; Employees who have already provided written notice of separation or retirement and employees that are being involuntarily separated by the City.
Effective dates of separation will be determined by the Department Director based on the best interest of the City. Accepted applicants must voluntarily accept and sign a Separation Agreement that contains a release of all employment rights and claims.
Staff recommends that the City Council adopt a resolution authorizing the City Manager to implement a Voluntary Separation Program.
FINANCIAL IMPACTS:
Currently the City has over 100 employees who meet CalPERS retirement eligibility criteria. It is unknown how many will opt to take advantage of the Voluntary Separation Program, but the City will realize a net savings for every position that is vacated. The lump-sum payments will be paid from each position’s salary/benefits budget, and the savings from vacant positions will be realized in those same budgets.
CEQA:
The City Manager has determined that the recommended action described in this agenda report is not subject to CEQA, pursuant to CEQA Guidelines Section 15060(c).
DOCUMENTS ATTACHED:
ATCH 1 - Resolution
EX A - Voluntary Separation Program
NOTIFICATION:
City Employees