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File Number: 12 -135 <br />Projected Timeline for Implementation of Government Code 420903 <br />• City Council Resolution of Intent <br />to Offer Two Years' Additional Service Credit April 2, 2012 <br />• Retirement Window (90 -day minimum duration) April 3 -July 2, 2012 <br />Program Requirements <br />Utilization of Government Code §20903 must be related to impending layoffs to job <br />classifications that constitute at least one percent of the job classifications in a department or <br />organizational unit as designated by the City, resulting from the curtailment of, or change in <br />the manner of performing its services. Moreover, such vacancies created by the retirements <br />under this Government Code section, or their equivalents, must not be filled for a minimum of <br />two years. <br />Previous City Council Action(s) <br />• On March 5, 2012, by Minute Order No. 2012 -010, the City Council continued the subject <br />matter, and directed staff to meet with the bargaining unit as soon as possible and to <br />return to Council with a recommendation at the next regular meeting. <br />Fiscal Impact <br />As discussed above, the Voluntary Incentive Separation Program (VISP) was projected to <br />cost $45,000 if three employees participated. <br />Staff anticipates that at least two employees will participate in the CalPERS additional service <br />credit program. If 2 employees accept the additional service credit, it is estimated that the <br />cost would be $7,900 in 2014 -15, and $191,000 over 20 years. If 3 employees retire, the cost <br />would be $12,700 in 2014 -15, and $309,000 over 20 years, and if all 4 eligible employees <br />retire, the cost would be $18,200 in 2014 -15 and $443,000 over 20 years. The current total <br />annual salary for the four positions $351,800. <br />CONCLUSION <br />If the City Council desires this option, notice is hereby given, making public the cost estimate <br />to provide the two years' additional service credit benefit provision of the City of San <br />Leandro's contract with CalPERS, pursuant to Government Code §20903. <br />PREPARED BY: Cynthia Kasten, Interim Human Resources Manager, City Manager's Office <br />City of San Leandro Page 3 Printed on 311312012 <br />