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
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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
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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
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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.
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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.
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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".
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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".
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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.
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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.
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