February 24, 2004

SUBJECT: FY 2003/2004 City Matching Contribution to Employee Donations for Deferral of Layoffs and Budget Modification No. 29 

REPORT IN BRIEF

This report recommends that the City Council approve the appropriation of $7,306.71 from the Non-Recurring Events Reserve in the General Fund to provide matching funds of 50% toward the cost to defer the layoff of four affected employees from the Department of Employment Development.

BACKGROUND

Council had approved on their meeting of January 27, 2004 a voluntary donation by City employees of accrued vacation, paid time off (PTO) or paid leave in order to provide funding to defer the layoff and/or extend the COBRA reimbursement beyond the three months already approved by City Council for up to nine (9) City employees. In addition, the City Council authorized the City to match funds on a 50/50 basis between the employee donations and City Contributions to a maximum City Contribution of $40,525.

In the previous report, City staff committed to return to City Council with an update and a request for appropriation based on actual donations received.  The result of the voluntary program yielded donations of 185 hours with a value of $7,306.71 from vacation/paid time off donations from City employees.

Originally eleven City positions were eliminated.  Two of the eleven employees were immediately absorbed in vacant positions in the Department of Public Works.  Between the dates of January 27, 2004 and February 5, 2004, one employee filed for retirement, two employees transferred to other City full-time positions, and two employees were retained through funding within the Department of Employment Development to February 14, 2004.  The four remaining employees’ last working day was January 30^th, 2004.

DISCUSSION

Representatives of the City and SEA met after the donations were calculated to agree on how the funds should be used.  The parties have agreed to a deferral of the layoff date providing each affected employee with 84.1 hours to be used for this purpose. The donations and City contribution will provide an extension of an additional pay period to delay the actual layoff until February 14, 2004 for the four affected employees.

FISCAL IMPACT

The donation of accrued leave hours is at no cost to the City, other than staff time to implement the program, and to process the donations.  It is recommended that the amount contributed by the City of $7,306.71 be appropriated from the General Fund Non-Recurring Events Reserve. 

PUBLIC CONTACT

Public contact was made through posting of the Council agenda on the City’s official notice bulletin board, posting of the agenda and report on the City’s web page, and the availability of the report in the Library and the City Clerk’s Office.

ALTERNATIVES

1. Authorize the budget modification of $7,306.71 for the City to match City employees’ donations funding on a 50/50 basis from the Non-Recurring Events Reserve in the General Fund.

2. Do not authorize the City’s funding match.

RECOMMENDATION

Staff recommends adoption of Alternative No. 1; Authorize the budget modification of $7,306.71 for the City to match City employees’ donations funding on a 50/50 basis from the Non-Recurring Events Reserve in the General Fund. 

Prepared by: 

Myriam Castaneda
Human Resources Supervisor

Reviewed by:

Mark Gregersen
Director of Human Resources

Reviewed by:

Mary Bradley
Director of Finance

Approved by:

Amy Chan

Acting City Manager

Attachment

1. Resolution