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HomeMy WebLinkAbout2011-078 Council ResolutionCouncil Member Rafferty introduced the following resolution and moved its adoption: CITY OF LINO LAKES RESOLUTION NO. 2011 -78 RESOLUTION AUTHORIZING A ONE -TIME EARLY RETIREMENT INCENTIVE PROGRAM FOR 2011 WHEREAS, the City Council has determined that it will likely have to decrease personnel costs through staff reductions in 2011 and 2012; and WHEREAS, personnel costs represent a significant portion of the City's annual budget; and WHEREAS, the City Council finds that it is desirable to approach staff reductions through attrition and retirement of existing employees to the extend possible in order to minimize staff layoffs; and WHEREAS, in order to facilitate the opportunity for eligible City employees to take advantage of their respective retirement option, financial assistance be provided to help defray future expenditures associated with medical insurance premiums for such employees; and WHEREAS, a program providing for an Early Retirement Incentive has been prepared and is ready for implementation. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Lino Lakes hereby adopts the attached Early Retirement Incentive Program, dated July 25, 2011, and directs the City Administrator to implement such program. Adopted by the City Council of the City of Lino Lakes, Minnesota, this 25th day of July, 2011. ATTEST: Bartell, C ty C The motion for the adoption of the foregoing resolution was duly seconded by Council Member Roeser and upon vote being taken thereon, the following voted in favor thereof: Rafferty, Roeser, Gallup, O'Donnell, Reinert The following voted against same: none Jeff Rein , rayor • • • AGENDA ITEM 3A STAFF ORIGINATOR: Jeff Karlson, City Administrator MEETING DATE: July 25, 2011 TOPIC: Early Retirement Incentive Program VOTE REQUIRED: 3/5 BACKGROUND In anticipation of staff reductions in the 2010 budget, the City Council adopted a resolution in 2009 authorizing an Early Retirement Incentive Program to minimize employee layoffs. Last fall the City Council directed me to conduct an organizational assessment of City staff for the purpose of identifying inefficiencies, redundancy, and other organizational inconsistencies. Also, to provide recommendations on where to implement changes that will improve overall organizational effectiveness. I have nearly concluded my report, which includes the elimination of two positions; both represented by AFSCME. Before I bring my recommendations for staff reductions to the City Council, I am requesting that the City Council consider offering a voluntary early retirement incentive. Details are included in the agenda packet. The application process could remain open for 4 -6 weeks. The applicant's last work day from the close of the application period is open for discussion. However, it probably should be no longer than 4 -6 weeks. An employee's application would be subject to approval. The City reserves the right to decline any employee's request for the early retirement program. The eligibility requirements and retirement incentives are listed on the next page of the agenda packet. RECOMMENDATION Adopt Resolution No. 2011 -78, authorizing a one -time Early Retirement Incentive Program for 2011. ATTACHMENTS Early Retirement Program Summary Sheet Program Application Form Employee Release Form Resolution Authorizing the Program • • CITY OF LINO LAKES VOLUNTARY EARLY RETIREMENT PROGRAM The City of Lino Lakes needs to reduce its operating cost as a result of the City losing around $1.2 million of state aid in 2009. One approach being implemented by the City to minimize employee layoffs is to offer a voluntary Early Retirement Incentive Program to eligible employees for a limited time only. Anyone interested in this program must submit an application by 18 September, 2009, to Dan Tesch, Director of Administration. An application form is enclosed in this packet. Eligibility Requirements ➢ You are a full -time employee with 10 or more years of service with the City of Lino Lakes. ➢ You are eligible for a reduced or full pension through PERA immediately upon retiring. ➢ Your application is subject to the approval of the Director of Administration. Early Retirement Incentives ➢ Twelve (12) weeks of additional severance pay at your current hourly rate. ➢ Ten thousand ($10,000.00) dollars will be deposited into a Post Retirement Health Care Savings Account, which will be opened for employees who are not currently enrolled with the Minnesota State Retirement System (MSRS). ➢ These incentives are being offered in addition to the regular benefits granted to a retiring employee per City policy or union contract. Other Considerations ➢ Participation in this program is strictly voluntary. ➢ To accept this offer, you must sign the release agreement, which waives your right to pursue any legal claim against the City of Lino Lakes and its employees. ➢ The program application form must be completed and submitted to the Director of Administration by 18 September, 2009. The last working day must be no later than 16 October, 2009. ➢ The City reserves the right to decline any employee's request for the early retirement incentive based on the number of requests received, an employee's critical skills, or business need. Any questions regarding this program can be directed to Dan Tesch at 651- 982 -2404. C 1 T Y:x C) F ftN J[ KES CITY OF LINO LAKES EARLY RETIREMENT INCENTIVE PROGRAM APPLICATION Name: Position Title: Department: Date of Application: ❑ I voluntarily elect to apply for the City of Lino Lakes sponsored early retirement incentive program. I understand that, if approved, the City will: 1. Contribute an incentive equivalent to twelve (12) weeks of gross salary at my current rate of pay. This payment will be taxable and paid directly to me; and 2. Deposit ten thousand ($10,000.00) dollars into a Post Employment Health Care Savings Account. I will be offered benefits continuation at the point of separation and it will be my responsibility to pay any continued benefits in a timely manner. In return, I understand and agree that I will: (1) submit my voluntary resignation in writing with a resignation date that corresponds to the date listed below, and (2) sign the Waiver and Release of Claims form waiving my rights to pursue any legal claim against the City of Lino Lakes, its employees and officers. I agree that if my application for an early retirement is approved by the Director of Administration, I will resign from my employment with the City of Lino Lakes on or before 16 October 2009. ❑ I understand that any vacation or sick leave severance payments will be distributed according to my labor agreement or, if I am not a member of a bargaining unit, the City's personnel policy and applicable post - employment health care savings contribution requirements. ❑ I have read and understand all the information in the Early Retirement Incentive Program. I understand that once my application is accepted by the City of Lino Lakes, my application cannot be revoked or nullified by me. I further understand that the Director of Administration retains the sole discretion to approve or deny any applications based on the number of applications received, the potential cost savings or lack thereof, an employee's critical skills, or the business needs of the City. Employee Signature Date Status of Application: ❑ Approved ❑ Denied • Dan Tesch, Director of Administration Date • • • My Acknowledgement of the Consideration and Purpose of the Release I acknowledge that I would not be eligible for the payments and benefits under the Incentive Plan unless I sign (and then do not rescind) this Participation Agreement and Release. I received the Incentive Plan materials authorized by the City Council Resolution and reviewed them. These materials include descriptions of who is eligible for the Incentive Plan and the time limitations under the Incentive Plan. The city encouraged me to seek counsel from a financial advisor and lawyer before signing this agreement. I have at least 45 calendar days to consider whether to sign the Participation Agreement and Release. I understand that I may knowingly and voluntarily agree to waive the 45 calendar day consideration period by electing to sign the Release before the 45 calendar days have passed. The city encouraged me to take my time and carefully evaluate my circumstances before deciding if signing this agreement is the right thing for me to do. A. What I Am Releasing In consideration for the payments and benefits under the Incentive Plan, I fully release and discharge the City of Lino Lakes from any and all claims, charges, complaints, liabilities of any kind, known or unknown (each a "claim "). I understand that by releasing the City of Lino Lakes from each and every claim, I am releasing all of my rights to bring any claim against the City of Lino Lakes based on any action, decision or event occurring prior to my signing this Agreement, including, without limitation, the terms and conditions of my employment with the City of Lino Lakes and the ending of my employment. Except as permitted by law, I will not commence any proceeding relating to any claim, and if the law permits me to commence such a proceeding, I agree that I may not seek or recover any monetary damages or other relief as a result of any such proceeding. My release includes any claim based upon THE AGE DISCRIMINATION IN EMPLOYMENT ACT, 29 U.S.C. § §621, et seq.; federal, state or local employment discrimination laws, regulations or requirements, including, but not limited to Title VII of Civil Rights Act, 42 U.S.C. § §2000e, et seq.; the Americans with Disabilities Act 42 U.S.C. § §12101, et seq.; and the Minnesota Human Rights Act, Minn. Stat. Ch. 363; any other statute, ordinance, or regulation; any contract, quasi- contract or promissory estoppel; any tort, including wrongful discharge, misrepresentation, fraud, infliction of emotional distress, or defamation; or any other legal or equitable theory. I also release and waive any rights and claims I may have under the Veterans Preference Act, Minn. Stat. 197.46. • B. What I am Not Releasing • • I am not releasing any claims for post- termination benefits, such as retirement benefits, under the provisions of any employee benefit plan. I also am not waiving any rights I have with regard to events that occur after the date of this Release. I am also not waiving or releasing workers compensation benefits with the exception of claims under Minnesota Statute 176.82. C. If I Want to Rescind this Participation Agreement and Release I understand that I have fifteen (15) calendar days from the day I sign this Participation Agreement and Release in which to change my mind and rescind it. In order for this rescission to be effective, it must be in writing and delivered to Dan Tesch, Director of Administration, within fifteen (15) days from the date !sign this agreement. I understand that my delivery of a written rescission can be either by hand by 4:00 p.m. on the last day or by certified mail return receipt requested, postmarked by the last day. / 2009 Employee Signature Date Signed Witness* • Witness signature does not need to be notarized EMPLOYEE — Once signed and dated: • Make TWO COPIES of this form • Keep one copy for your records • Give one copy to your supervisor • Submit the original to: Dan Tesch, Director of Administration