Agenda Packets - 2011/03/28 - Laserfiche WebLink

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Item No: 7H Meeting Date: March 28, 2011 Type of Business: Council Business City of Mounds View Staff Report To: Honorable Mayor and City Council From: James Ericson, City Administrator Item Title/Subject: Resolution 7760 Authorizing the Layoff of Kenneth Roberts, Community Development Director, and Awarding Severance Introduction: As a result of our nation’s recession, the State’s budget crisis and market forces which have severely curtailed development and building activity in the City of Mounds View, revenues to the City have decreased substantially in two successive years and already receipts are far below expectations in the present year. The City has examined services and staffing in all departments in an effort to reduce expenditures, and will continue to evaluate any and all potential cost-savings initiatives without impacting or diminishing the delivery and quality of core services expected by its residents. Discussion: One service area that has been hit especially hard by the recession is the Community Development Department. From 2009 to 2010, building permits and planning activity have significantly decreased, with corresponding decreases in contractor license, permit, plan review and planning case revenues. Given the significantly reduced workload and the limited revenues generated, it became clear that the City Council would need to consider a reduction in workforce. After reviewing each position’s responsibilities, wages and benefits, and considering experience, seniority and skill-set, the position that was deemed most expendable was the community development director, held by Kenneth Roberts since June 16, 2008. The Personnel Manual addresses layoffs in Section 4.15. This policy states that the “City Administrator, with the approval of the City Council, may lay off any employee whenever such action is deemed necessary by reason of shortage of work funds, the elimination of the position, changes in the organization, or other causes.” This policy also requires that any employee to be laid off be provided with two week’s notice in writing prior to the effective date of the layoff. Finally, it is has generally been the practice to provide laid off employees with a severance in addition to any compensation for accrued sick leave and vacation hours in an amount equal to one week of pay for each full year of employment. Mr. Roberts was hired in June of 2008, thus he has worked two full years and would be eligible for two weeks of pay as a severance. Also, while floating holidays were not intended to be computed in severance compensation, because Mr. Roberts has not had an opportunity to use the two accrued floating holidays this year, it is recommended they be added to the severance calculation.