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City of San Leandro <br />Meeting Date: March 19, 2012 <br />Staff Report <br />File Number: 12 -135 Agenda Section: ACTION ITEMS <br />Agenda Number: 10.A. <br />TO: City Council <br />FROM: Chris Zapata <br />City Manager <br />BY: Lianne Marshall <br />Assistant City Manager <br />FINANCE REVIEW: James O'Leary <br />Interim Finance Director <br />TITLE: Staff Report Regarding Provision of Two Years' Additional Service Credit as <br />an Alternative to Layoffs or the Voluntary Incentive Separation Program <br />(VISP) <br />SUMMARY AND RECOMMENDATION <br />The City Manager recommends that the City Council accept this report giving public notice of <br />the cost estimate to provide the benefit of two years' additional service credit pursuant to the <br />City of San Leandro's contract with CalPERS and the provisions of Government Code <br />§20903. <br />Should the City Council direct staff to bring back a resolution approving a retirement incentive <br />pursuant to Government Code §20903, which provides two years of additional service credit <br />to City employees in identified classifications within the Community Development Department, <br />it is estimated that the cost would be $7,900 in 2014 -15, and $191,000 over 20 years if two <br />employees accept the additional service credit. The annual cost is estimated at $12,700 <br />beginning in 2014 -15 (and projected to compound two percent per year for 20 years), or a <br />total of $309,000 if three eligible individuals accept the retirement offer. The total potential <br />cost to the City if all four eligible individuals retire is $18,200 in the first year (2014 -15) or <br />$443,000, over 20 years beginning in 2014 -15. <br />BACKGROUND <br />Based on the State Supreme Court's rulings in January 2012, redevelopment agencies in <br />California were abolished, effective February 1, 2012. Funds for housing and economic <br />development programs and staff will be significantly reduced. Approximately $1.3 million in <br />replacement General Fund revenue is available to fund these programs at a reduced level. <br />Staff presented an option to the Finance Committee at their meeting on February 3, 2012 that <br />would have allocated approximately 75% of the funding for staff and 25% to programs. The <br />Committee directed staff to prepare another scenario for City Council consideration that would <br />divide the funds equally between staff and programs. <br />City of San Leandro Page 1 Printed on 311312012 <br />