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CITY OF COLTON <br />AGENDA REPORT <br />For City Council Meeting of June 17, 19% <br />TO: HONORABLE MAYOR & C1TY COUNCIL h <br />APPROVAL: Nabar Enrique Martinez, City Manager I� <br />FROM: Gracie FwmAndez Harmon, Personnel Dh ecto <br />SUBJECT: Approval of Severance Package for Employees Displaced Due to Outsourcing <br />of Sanitation and Recycling Functions <br />DATE: June 13. 1996 <br />BACKGROUND, The Layoff Policy in the Memorandum of Understanding (Article I, Section 5) <br />requires that the City notify the affected employees at least two weeks prior to the effective date of <br />the layoff. Employees laid off as a result of the Fiscal Health Plans in Fiscal Year 1994-95 were <br />notified in accordance with the MOU provision and were directed not to work upon receiving their <br />layoff notice. Therefore, they did not work their last two weeks of employment with the City but <br />received compensation. <br />DISCUSSION/ANALYSIS: The layoffs due to the outsourcing of the sanitation and recycling <br />functions will be effective June 30, 1996. The City has provided ratification, bumping, etc., in <br />accordance with MOU provisions and has treated this layoff consistent with previous layoffs. <br />However, in order to continue to provide sanitation/recycling services to residents, employees are <br />required to work the last two weeks of their employment, as opposed to last year when employees <br />were not required to work. It is imperative that employees work through June 30, 1996 in order to <br />continue uninterrupted services to residents and to insure a smooth transition. <br />If we were to offer employees a choice of working or not working, due to incentives being offered <br />by Taormina to employees they are hiring, employees would be ineligible for those incentives if <br />they chose not to work the last two weeks of their employment with the City of Colton. In order <br />that employees not feel that they are being "penalized", staff is recommending that the City <br />Council authorize a "severance" package to affected employees. <br />The cost of the two week severance package is approximately $19,578.45. The City is saving over <br />$44,000 in leave accruals that will rat be paid to employees in accordance with MOU provisions. <br />IEEIANCIAL IMPACT: The City received $3 million from Taormina; $1.8 million has been set <br />aside to pay off general fund debt and all encumbrances. The "encumbrances" includes <br />accumulated leave pay off and the severance package. The $19,578.45 for the severance package <br />would be paid from account /23-4050-01 (Salaries) and account #234050-10. (Salary Related <br />Benefi ) <br />11 'y I "'/ <br />Gracie Fernandez Harmon, Personnel Director Anna Vega, Finance D' <br />RECOMMENDATION: That City Council authorize a two-week severance package for <br />employees laid off due to the outsourcing of the sanitation/recycling functions. <br />uni Ly off piy.dw <br />