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File Number: 12 -135 Staff presented the two scenarios, with the City Manager's recommended "Plan B" to the entire City Council at the City Council work session on February 14, 2012. The City Council gave direction to proceed with "Plan B" which reduces the number of funded positions to 3.5. At the March 5, 2012 City Council meeting, staff presented a Voluntary Incentive Separation Program (VISP) as a means of mitigating some impact of the potential layoffs made necessary by the elimination of Redevelopment Agency funding effective February 1, 2012, when affected staff and program costs were transferred to the City's General Fund. This cost shift represents an impact of $90,000 per month, or $450,000 through June 30, 2012. This and other program expenses that total $748,000 are offset by an estimated $815,000 in additional property tax and administrative allowance revenue. As previously indicated in the March 5, 2012 staff report, the projected cost of the VISP estimated for three individuals at a maximum of $15,000 each, for a cost of $45,000, would be paid out immediately upon the voluntary separation of an employee agreeing to separation prior to June 30, 2012. In addition, part -time employees funded by Redevelopment Funds would continue to be employed up until June 30, 2012, but with no additional incentive. The City Council did not accept this proposal. The City Council directed staff to meet with affected members of the San Leandro City Employees' Association ( SLCEA) to gauge their interest in and explore alternatives to the VISP, including Government Code §20903 (the CalPERS retirement incentive). It has been determined that affected members of SLCEA are interested in the CalPERS retirement incentive. If the City Council decides to grant two years' additional service credit to affected City employees in identified classifications and organizational units, it is required by law to identify and make public the associated costs two weeks prior to the adoption of a resolution. Under this projected timeline, employees would then be provided a 90 -day window of retirement which is projected to end on July 2, 2012. Only full -time employees, vested with PERS and over 50 years of age, are eligible for the program. In order to expedite the potential implementation of the two years' additional service credit, staff is providing a report at this meeting so that a Resolution may be brought before the City Council at the April 2, 2012 meeting, which is the earliest meeting which provides two week's notice as required by PERS law. If approved, the CalPERS early retirement option will be offered to employees in the three job classifications in the identified department or organizational unit (see below). In any case, the City must also begin the issuance of layoff notices, since it is a 60 -day process, and in the event an insufficient number of employees accept the retirement incentive, the City must reduce the number of positions by early in the new fiscal year. Department/Organizational Unit N Classification Community Development 2 Senior Project Specialist Community Development 1 Project Specialist II CD /Housing Services Division 1 Administrative Assistant II City of San Leandro Page 2 Printed on 311312012