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Golden Handshake <br />January 28, 2003 <br />Page 2 <br />ENVIRONMENTAL IMPACT: This item does not carry any environmental impact. <br />FISCAL IMPACT: <br />The cost of providing the two years additional service credit is calculated based on the member's annual <br />reportable compensation, the cost factor, and whether the agency's contract provides the post-retirement <br />survivor allowance and the cost -of -living allowance. It has been calculated that the two years additional <br />service credit for the eligible positions will cost $337,382. In addition, there is a $10.00 valuation charge <br />for each member who retires during the designated period and receives the additional service credit. <br />At the January 21" City Council meeting, the costs to provide this benefit were made public at least two <br />weeks prior to the adoption of the proposed resolution thus the City has complied with Government Code <br />Section 7507. <br />The one-time cost of $337,382 will be paid this fiscal year from each fund's reserves but will be more <br />than offset by annual savings specifically, annual salary and salary -related benefits, of at a least $739,000 <br />each year in future annual budgets. <br />RECOMMENDATION: <br />It is respectfully recommended that the Members of the City Council hereby approve and adopt the <br />proposed Resolution formally establishing another designated period for two years additional service <br />credit and providing the list of eligible positions (Miscellaneous employees.) <br />ONLY <br />City Manager:, <br />Finance Di <br />OTHER: <br />