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City of San Leandro <br />Meeting Date: March 5, 2012 <br />Staff Report <br />File Number: 12 -102 Agenda Section: CONSENT CALENDAR <br />Agenda Number: 81. <br />TO: City Council <br />FROM: Chris Zapata <br />City Manager <br />BY: Lianne Marshall <br />Assistant City Manager <br />FINANCE REVIEW: Not Applicable <br />TITLE: Staff Report for Resolution Approving the Voluntary Incentive Separation <br />Program for Eligible City Employees Affected by Lack of Redevelopment <br />Funding <br />SUMMARY AND RECOMMENDATION <br />It is recommended that the City Council approve a resolution authorizing the City Manager to <br />implement a Voluntary Incentive Separation Program for those eligible employees affected by <br />the lack of Redevelopment Funding. In this severe fiscal situation, the separation incentive is <br />being proposed in an effort to mitigate the number of potential layoffs. <br />BACKGROUND <br />As incentive to voluntarily separate, many agencies have provided a lump sum of money <br />payable upon separation (and signing an agreement). Most have specific criteria to qualify <br />such as a number of years with the agency, a maximum payoff, a set window of opportunity, <br />and justifiable savings. The City has determined that as many as ten full -time positions are <br />potentially affected by the lack of Redevelopment funding and all are located in the <br />Community Development Department. However, given that there are several vacancies for <br />transfer opportunity within the City, as well as some replacement funding available, we <br />anticipate only a limited number of layoffs. There are also several part -time positions <br />affected by the lack of funding, and while they are not covered by the lay -off rules and thus <br />not eligible for the proposed incentive program, it is proposed that their employment with the <br />City continue up until the end of the fiscal year allowing them time to seek other employment. <br />Transitional assistance will be provided as needed for affected individuals to provide an <br />orientation to resources such as Employee Assistance Program, Unemployment Insurance, <br />PERS retirement and Social Security, and job search resources. <br />The City Manager is proposing to offer a cash incentive program during a two -week window to <br />full -time employees that are impacted by the elimination of redevelopment in an effort to avoid <br />layoffs. Costs associated with layoffs include unemployment insurance claims which can <br />City of San Leandro Page 1 Printed on 212812012 <br />