2003 AGN JUN 03 I18 - Laserfiche WebLink

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Golden Handshake — Misc. June 3, 2003 Page 2 of 2 ENVIRONMENTAL IMPACT: This item does not carry environmental impact. FISCAL IMPACT: The cost of providing the two years additional service credit is calculated based on the individual member's annual reportable compensation, the cost factor, and whether the agency's contract provides the post-retirement survivor allowance (applies to Safety Members only) and the cost -of -living allowance. It has been calculated that the two years additional service credit for the 18 positions listed above will cost $ 373.820.02 for Miscellaneous Members and $ 402.879.84 for Safety Members, for a total one-time cost of $776,699.86. In addition, there is a $10 valuation charge for each member who retires during the designated period and receives the additional service credit. Government Code Section 7507 requires that the costs to provide this benefit be made public at a public meeting at least two weeks prior to the adoption of the resolution. This one-time cost of $ 776.699.86 will be paid this fiscal year from each fund's reserves, but will be more than offset by annual savings of approximately $ 1,733,060.47 in salary and benefit costs in each of the future fiscal year budgets. As required by Government Code Section 7507, Staff respectfully requests that an announcement be made to the public informing that the costs to offer the golden handshake to 19 City employees will be $776,699.86, along with a $10 valuation charge for each member that retires. Further, it is requested that the City Council declare that the window for the Golden Handshake shall be from June 18. 2003 to December 14, 2003. City Attorney: Finance Director: City Manager: OTHER: