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HomeMy WebLinkAboutCity of Tamarac Resolution R-2010-076�7 Temp. Reso. No. 11833 May 28, 2010 Page 1 of 4 CITY OF TAMARAC, FLORIDA RESOLUTION NO. R-2010- J, A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF TAMARAC, FLORIDA, AUTHORIZING THE ESTABLISHMENT OF A VOLUNTARY SEPARATION INCENTIVE PLAN OFFERING SEPARATION INCENTIVE BENEFITS TO- ELIGIBLE EMPLOYEES MEETING CERTAIN CITY SERVICE REQUIREMENTS OR MEETING CITY SERVICE AND PENSION VESTING REQUIREMENTS FOR A NORMAL, UNREDUCED PENSION OR RETIREMENT BENEFIT; AUTHORIZING APPROPRIATE CITY OFFICIALS TO EXECUTE AND ADMINISTER THE PLAN; PROVIDING FOR THE APPROPRIATION OF FUNDS; PROVIDING FOR CONFLICTS; PROVIDING FOR SEVERABILITY; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, recent State legislation and Amendment 1 passed by Florida voters in January 2008, coupled with the current economic climate, continue to have a considerable impact on the City's budget, and WHEREAS, the City of Tamarac has eliminated a significant number of positions to reduce the City's budget in the last three years; and WHEREAS, the City of Tamarac will again face one of the largest reductions in property assessments in Broward County in FY 2011, and WHEREAS, the City of Tamarac is committed to identifying opportunities to reduce its budget and to implement programs that will successfully reduce recurring costs to the organization while minimizing the impact to the City's residents and employees; and 1 Temp. Reso. No. 11833 May 28, 2010 Page 2 of 4 WHEREAS, the City of Tamarac has designed a Voluntary Separation Incentive Plan (VSIP) to reduce and contain costs through savings in personnel expenses, minimize the impact of reductions on Tamarac workforce, and provide an opportunity for employees considering retirement or other career options, and WHEREAS, the Voluntary Separation Incentive Plan (VSIP) will provide separation incentive benefits to eligible employees meeting certain City service requirements or meeting City service and pension vesting requirements for a normal, unreduced pension or retirement benefit; and WHEREAS, funds to pay for the Voluntary Separation Incentive Program (VSIP) will be appropriated from one-time, non -recurring funds; and WHEREAS, each position vacated through this program will be fully evaluated and only filled if it is an essential position; otherwise, it will be eliminated; and WHEREAS, we anticipate that the return on investment for this program will be between six (6) months and one (1) year; and WHEREAS, the long-term savings from reducing positions and staffing will ensure that the City can balance its budget in FY2011 and in future years. WHEREAS, the City Commission of the City of Tamarac has deemed it to be in the best interest of the citizens of the City of Tamarac to approve the Voluntary Separation Incentive Plan (VSIP) and authorize the appropriate City Officials to implement the Plan. Temp. Reso. No. 11833 May 28, 2010 Page 3 of 4 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF TAMARAC, FLORIDA: SECTION 1: That the foregoing "WHEREAS" clauses are hereby ratified and confirmed as being true and correct and hereby made a specific part of this Resolution. All exhibits attached hereto are incorporated herein and made a specific part of this Resolution. SECTION 2: That the City Commission authorizes the establishment of the Voluntary Separation Incentive Plan (VSIP), attached as "Exhibit A". SECTION 3: That appropriate City Officials are hereby authorized to execute and administer said Voluntary Separation Incentive Plan on behalf of the City of Tamarac. SECTION 4: That an appropriation to provide sufficient funding for the VSIP for FY 2010 will be included in a budget amendment prior to November 30, 2010 pursuant to Florida Statute 166.241(2). SECTION 5: All resolutions or parts in conflict herewith are hereby repealed to the extent of such conflict. SECTION 6: If any clause, section, other part or application of this Resolution is held by any court of competent jurisdiction to be unconstitutional or invalid, in part or application, it shall not affect the validity of the remaining portions or applications of this Resolution. Temp. Reso. No. 11833 May 28, 2010 Page 4 of 4 SECTION 7: This Resolution shall become effective immediately upon its passage and adoption. PASSED, ADOPTED AND APPROVED this %day of June, 2010. ATTEST: -f &/Record of COMMISSION VOTE: $(ARIOU-SWI.ENSON, CIVIC MAYOR TALABISCO f ✓7,.-% CITY d-fRK DIST 1: COMM BUSHNELL DIST 2: COMM ATKINS-GRAD l- DIST 3: COMM GLASSER ZZ. DIST 4: VM DRESSLER --' 1 HEREBY CERTIFY that I have approved this RESOLUTION as to form. dAl V rl SAMUELS. GOR CITY ATTORNEY 1 EXHIBIT A City of Tamarac Voluntary Separation Incentive Plan (Effective June 9, 2010) Plan Document And Summary Plan Description City of Tamarac Voluntary Separation Incentive Plan Table of Contents INTRODUCTION.......................................................................... 3 .................................... ELIGIBLEEMPLOYEE.................................................................................................................3 ADDITIONAL CONDITIONS OF ELIGIBILITY.........................................................................4 ACCEPTANCE .................... PLAN APPLICATION ....................... . AGREEMENT, WAIVER AND RELEASE; REVOCATION....................................................5 SEPARATION INCENTIVE BENEFITS.....................................................................................6 NON -PLAN PAYOUTS..................................................................... 9 ................................. RELATIONSHIP TO THE CITY'S PENSION PLANS.............................................................9 NO RE-EMPLOYMENT WITH THE CITY.................................................................................9 PLAN ADMINISTRATION............................................................ 9 .......................................... NO ASSIGNMENT ....................... RETURN OF SEPARATION INCENTIVE PAYMENTS ...................................... 9 NO REPRESENTATION CONTRARY TO THE PLAN.........................................................10 NOEMPLOYMENT RIGHTS....................................................................................................10 APPLICABLELAW..................................................................... ....................10 ............................ SEVERABILITY........................................................................... .........10 ....................................... MISCELLANEOUS PROVISIONS ........................ .......................10 ............................................. ATTACHMENTI.......................................................................... 1 l ............................... ATTACHMENT11.........................................................................................................................13 2 City of Tamarac Voluntary Separation Incentive Plan INTRODUCTION The City of Tamarac (the "City") is offering the City of Tamarac's Voluntary Separation Incentive Plan (the "Plan"), effective June 9, 2010. The purpose of the Plan is to reduce and contain costs through savings in personnel expenses, to minimize the impact of anticipated reductions on the Tamarac workforce, and to provide opportunities for employees considering retirement or other career options by providing a package of separation incentive benefits. These incentives would allow employees to voluntarily separate from service with the City according to the Plan's terms, by completing, signing and submitting an Application and Agreement, Waiver and Release provided by the City, and meeting all of the other terms of the Plan. Participation in the Plan shall be on a strictly voluntary basis. The choice is entirely that of each individual employee. No one at the City is requiring any employee to accept or reject participation in the Plan. However, participation shall be solely in accordance with the terms of the Plan as set forth herein. This document serves as both the official Plan Document and the Summary Plan Description. Employee rights are governed by the terms of this document. The Plan will terminate when all incentive benefits provided by the Plan provided herein have been provided. ELIGIBLE EMPLOYEE Eligible employees of the City may apply to participate in the Plan. You are an "eligible employee" if you meet the following: A. As of June 9, 2010, you: ■ are a regular, full-time employee of the City, and ■ have not already provided the City with a signed letter of resignation or a signed letter of retirement (this would include an irrevocable letter of resignation as part of participation in a DROP program); applied for or are already on a disability pension, or otherwise have left the City's employment, and ■ are not in the process of being involuntarily terminated, and ■ either have been employed by the City at least 20 years OR are fully vested and eligible for a normal unreduced pension or a retirement benefit from the City's 401(a) retirement plan. B. By 5:00 p.m. on August 12, 2010 commit to leaving the City's employment on or before August 31, 2010. Independent contractors, consultants, individuals performing services for the City who have entered into an independent contractor or consulting agreement with the City, leased employees, regular part-time, limited -term and temporary/seasonal employees of the City are not eligible to participate. In particular, individuals not treated as employees by the City on its payroll records are excluded from participation even if a court or administrative agency determines that such individuals are employees. ADDITIONAL CONDITIONS OF ELIGIBILITY An otherwise eligible employee (as define above) who is accepted to participate in the Plan shall not be eligible for separation incentive benefits under the Plan if: A. the employee ceases to be an eligible employee as defined above; B. the employee's employment with the City terminates by reason of death, resignation or job abandonment before his or her voluntary separation date (as described later); C. the employee is terminated by reason of unacceptable performance under the City's policies or because of a violation of City policy; D. the employee timely revokes the Agreement, Waiver and Release; E. the employee fails to comply with the terms of the Plan; or F. the Plan is terminated. ACCEPTANCE While it is the intention of the City to allow as many eligible employees to participate in the Plan as possible, the City reserves the right to deny participation to an eligible employee to the extent the City determines, in its sole discretion, that the employee's departure would have a critical adverse impact to the financial, operational or business needs of the City. The City will advise each applicant as soon as practicable after receipt of the Application and Agreement, Waiver and Release whether the employee's Application and Agreement, Waiver and Release have been approved. 4 PLAN APPLICATION If an employee meets the definition of eligible employee above, and wants to participate in the Plan, he or she must timely submit the Application and Agreement, Waiver and Release. The Application and Agreement, Waiver and Release are attached to this document as Attachments I and II, respectively. The employee must return the completed and signed Application and Agreement, Waiver and Release to the Human Resources Department during the Application period. The Application period begins on Thursday June 10, 2010 at 8:00 a.m. and ends on Thursday, August 12, 2010 at 5:00 p.m. If the employee does not submit a completed and signed Application and Agreement, Waiver and Release to the Human Resources Department on or before Thursday, August 12, 2010 at 5:00 p.m., he or she cannot become a participant. If the employee completes, signs and submits the Application and Agreement, Waiver and Release, he or she is indicating that he or she is willing to voluntarily separate from his or her employment with the City on or before August 31, 2010, in exchange for the separation incentive benefits described below. The date the employee chooses to separate from the City, which must be on or before August 31, 2010, is known as his or her "voluntary separation date." AGREEMENT. WAIVER AND RELEASE; REVOCATION To receive the separation incentive benefits described below, the employee must submit a signed Voluntary Separation Incentive Plan Application and Agreement, Waiver and Release to the Human Resources Department on or before 5:00 pm on August 12, 2010. The Application and Agreement, Waiver and Release are attached hereto as Attachments I and II, respectively. If he or she signs and submits the Application and the Agreement, Waiver and Release, he or she may revoke it within seven (7) calendar days of the date they are submitted. If the employee wishes to revoke the Agreement, Waiver and Release, it must be done in writing, and the Human Resources Department must receive the request to revoke within seven (7) calendar days of the date the forms were submitted. If the Application and Agreement, Waiver and Release are revoked in that seven (7) calendar day period, the employee shall not be eligible to receive any benefits available under the Plan. The employee is advised to contact their personal attorney, financial advisor, Union representative (if applicable), or any other professional advisor of his or her choosing at the emplovee's own expense to review the Application and Agreement, Waiver and Release, if desired. 5 SEPARATION INCENTIVE BENEFITS Eligible employees, who execute and do not later revoke their signed Agreement, Waiver and Release, and whose Application and Agreement, Waiver and Release is approved by the City, shall select from one of the following options under the Plan. The selection of the Separation Incentive Benefit Option is irrevocable. Option #1 — Twenty (20) weeks of base pay. The Employee shall receive, as part of their final pay a lump sum payment of twenty (20) weeks of base pay at the time of his or her voluntary separation date (does not include overtime, allowances or any other type of additional pay). Twenty (20) weeks equals 1/52 of annual base pay multiplied by twenty (20). All legally required taxes, authorized deductions and any sums owing to the City shall be deducted from the separation incentive payment, as allowed or required by law. Option #2 — Fourteen (14) weeks of base pay and the continuation of health insurance coverage consistent with the City/Active Employee cost sharing structure for up to twelve (12) months. The Employee shall receive, as part of their final pay a lump sum payment of fourteen (14) weeks of base pay at the time of his or her voluntary separation date (does not include overtime, allowances or any other type of additional pay). Fourteen (14) weeks equals 1/52 of annual base pay multiplied by fourteen (14).. All legally required taxes, authorized deductions and any sums owing to the City shall be deducted from the separation incentive payment, as allowed or required by law. Additionally, for employees participating in the City's health insurance program on their voluntary separation date, the City will pay the applicable cost sharing percentage for the employee (and their eligible dependents if they also are covered participants as of the employee's separation date and remain on the plan after the date of separation from employment) of the monthly health care premium for the class description and coverage classification of health insurance coverage the employee had as of his or her date of separation and maintained thereafter. The City's payments will be made pursuant to the applicable Health Plan for the period of up to twelve (12) months (provided the employee is otherwise in compliance with terms of the Plan and the employee and eligible dependents are otherwise eligible to continue to participate in the Health Plan), beginning with the first day of the month after the employee separates from service with the City. Please read the information below under the heading "Important Information Regarding Health Insurance Benefits in Options #2, #3 & #4". 2 Option #3 — Seven (7) weeks of base pay and the continuation of health insurance coverage consistent with the City/Active Employee cost sharing structure for up to twenty-four (24) months. The Employee shall receive, as part of their final pay a lump sum payment of seven (7) weeks of base pay at the time of his or her voluntary separation date (does not include overtime, allowances or any other type of additional pay). Seven (7) weeks equals 1/52 of annual base pay multiplied by seven (7). All legally required taxes, authorized deductions and any sums owing to the City shall be deducted from the separation incentive payment, as allowed or required by law. Additionally, for employees participating in the City's health insurance program on their voluntary separation date, the City will pay the applicable cost sharing percentage for the employee (and their eligible dependents if they also are covered participants as of the employee's separation date and remain on the plan after the date of separation from employment) of the monthly health care premium for the class description and coverage classification of health insurance coverage the employee had as of his or her date of separation and maintained thereafter. The City's payments will be made pursuant to the applicable Health Plan for the period of up to twenty-four (24) months (provided the employee is otherwise in compliance with terms of Plan and the employee and eligible dependents are otherwise eligible to continue to participate in the Health Plan), beginning with the first day of the month after the employee separates from service with the City. Please read the information below under the heading "Important Information Regarding Health Insurance Benefits in Options #2, #3 & #47 . Option #4 — Continuation of health insurance coverage consistent with the City/Active Employee cost sharing structure for up to thirty-six (36) months. For employees participating in the City's health insurance program on their voluntary separation date, the City will pay the applicable cost sharing percentage for the employee (and their eligible dependents if they also are covered participants as of the employee's separation date and remain on the plan after the date of separation from employment) of the monthly health care premium for the class description and coverage classification of health insurance coverage the employee had as of his or her date of separation and maintained thereafter. The City's payments will be made pursuant to the applicable Health Plan for the period of up to thirty-six (36) months (provided the employee is otherwise in compliance with terms of the Plan and the employee and eligible dependents are otherwise eligible to continue to participate in the Health Plan), beginning with the first day of the month after the employee separates from service with the City. Please read the information below under the heading "Important Information Regarding Health Insurance Benefits in Options #2, #3 & #4". 7 Important Information Regarding Health Insurance Benefits in Options #2, #3 & #4 Voluntary separation is a qualifying event whereby the employee is eligible to participate in health care coverage under COBRA, therefore, the City is required to advise the employee of this right. It is the employee's sole option whether they choose to participate in COBRA coverage, or select an Option under the Plan which will continue health care coverage as described in the relevant options of the Plan. Under no circumstances is an employee entitled to receive both forms of health coverage. The benefits included in the Plan options may meet or exceed group health insurance COBRA provisions. Employees who separate under the Plan and elect to continue health insurance coverage under one of the options offered will be required to pay the applicable premium in accordance with the same cost sharing percentages applicable to the City's active employees. The premium and the premium cost sharing percentage may change over time during the term of the Employee's continued health coverage following their separation, but in no event will the Employee's premium and premium cost sharing percentage differ from that offered to the City's active employees. Under either COBRA or any option under the Plan in which health coverage is selected, the employee will be responsible for the timely payment of their portion of all health insurance premiums in order to maintain health coverage during the time period selected by the Employee. Information will be provided to the Employee prior to separation as to the acceptable method of submitting their premium payments. Late payment or non-payment by the Employee of their share of their health insurance premium shall result in the cancellation of their health insurance coverage. In the event of cancellation of their health insurance coverage due to the Employee's late or non-payment, the Employee will not be entitled to any further health insurance benefits from the City. Only participants in this Plan who retire immediately or retire within the maximum period of continuation of health coverage under their selected Option of the Plan, and meet the eligibility requirements of the City's retiree benefits continuation may continue to participate in the City's group health insurance plans under the same terms and conditions applicable to other retirees once this Plan benefit has been exhausted. The health insurance coverage under the Plan options does not include dental, life or any other form of insurance coverage offered by the City. Eligibility for Federal reimbursements towards the City's Health Plan will have no impact on the health premium cost sharing percentage. 8 NON -PLAN PAYOUTS All other accrued payouts or benefits provided (e.g., pay for accrued but unused leave, etc.) will be made consistent with existing City policies, pay plans, collective bargaining agreements (if applicable) and/or law, and are not part of the consideration offered under this Plan. RELATIONSHIP TO THE CITY'S PENSION PLANS The Voluntary Separation Incentive Plan does not modify or replace any of the provisions or specifications of any of the City's Pension Plans that determine an employee's eligibility to receive pension benefits from any of the Plans. NO RE-EMPLOYMENT WITH THE CITY An eligible employee who participates in the plan may not seek or accept re- employment in any capacity with the City after his or her voluntary separation date. PLAN ADMINISTRATION The City Manager is the "Plan Administrator". The Plan Administrator has the discretionary authority to determine eligibility for Plan benefits and to construe the terms of the Plan, including making factual determinations. Benefits under the Plan shall be payable only if the Plan Administrator determines, at his or her sole discretion, that an eligible employee is entitled to the incentives. The decisions of the Plan Administrator are final and conclusive with respect to all questions concerning the Plan's administration. NO ASSIGNMENT Separation incentive benefits payable under the Plan shall not be subject to anticipation, alienation, pledge, sale, transfer, assignment, garnishment, attachment, execution or encumbrance of any kind and any attempt to do so shall be void, except as required by law. RETURN OF SEPARATION INCENTIVE PAYMENTS An eligible employee shall be required to return to the City all separation incentive benefits (or portion thereof) that the City paid by mistake of fact, mistake of law, or contrary to the terms of the Plan. Z NO REPRESENTATION CONTRARY TO THE PLAN No employee, officer, director, trustee, or elected official of the City has the right to alter, vary, or modify the terms of the Plan, except by means of an authorized written amendment. NO EMPLOYMENT RIGHTS The Plan shall not confer employment rights upon any person. No person shall be entitled, by virtue of the Plan, to remain employed by the City and nothing in the Plan shall restrict the right of the City to terminate an eligible employee's or any other person's employment at any time consistent with the terms that were in effect at the time of introduction of this Plan, as provided in applicable City Policies or collective bargaining agreements. APPLICABLE LAW The Plan shall be governed and construed in accordance with the laws of the State of Florida. SEVERABILITY If the Plan Administrator or a court of competent jurisdiction finds, holds or deems any provision of the Plan to be void, unlawful or unenforceable under any applicable statute or other controlling law, the provision shall be severed from the Plan and the remainder of the Plan shall continue in full force and effect. MISCELLANEOUS PROVISIONS All City property (i.e. keys, credit cards, documents and records, printers, laptops or other computers, phones, pagers, radios, identification cards, automobiles, or any other equipment or property) must be returned by the eligible employee as of his or her voluntary separation date in order for such eligible employee to receive separation incentive benefits under the Plan. The Plan is hereby authorized by City of Tamarac, Temporary Resolution No. 11833 and execution of this Plan by the City of Tamarac's duly authorized officer. 10