Title
Staff Report Regarding Provision of Two Years' Additional Service Credit as an Alternative to Layoffs or the Voluntary Incentive Separation Program (VISP)
Staffreport
SUMMARY AND RECOMMENDATION
The City Manager recommends that the City Council accept this report giving public notice of the cost estimate to provide the benefit of two years’ additional service credit pursuant to the City of San Leandro’s contract with CalPERS and the provisions of Government Code §20903.
Should the City Council direct staff to bring back a resolution approving a retirement incentive pursuant to Government Code §20903, which provides two years of additional service credit to City employees in identified classifications within the Community Development Department, it is estimated that the cost would be $7,900 in 2014-15, and $191,000 over 20 years if two employees accept the additional service credit. The annual cost is estimated at $12,700 beginning in 2014-15 (and projected to compound two percent per year for 20 years), or a total of $309,000 if three eligible individuals accept the retirement offer. The total potential cost to the City if all four eligible individuals retire is $18,200 in the first year (2014-15) or $443,000, over 20 years beginning in 2014-15.
BACKGROUND
Based on the State Supreme Court’s rulings in January 2012, redevelopment agencies in California were abolished, effective February 1, 2012. Funds for housing and economic development programs and staff will be significantly reduced. Approximately $1.3 million in replacement General Fund revenue is available to fund these programs at a reduced level. Staff presented an option to the Finance Committee at their meeting on February 3, 2012 that would have allocated approximately 75% of the funding for staff and 25% to programs. The Committee directed staff to prepare another scenario for City Council consideration that would divide the funds equally between staff and programs.
Staff presented t...
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