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Home My WebLink About5090 ORDINANCE NO. 5090 AN ORDINANCE of the City Council of the City of Bremerton, Washington, approving the Voluntary Separation and Reduced Work Hours Program. WHEREAS, in an effort to accommodate budget constraints, City Council desires to give the Mayor the option to offer incentives to employees to voluntarily separate from employment, either through retirement or resignation; and WHEREAS, City Council also desires to give the Mayor the ability to offer employees the option to voluntarily reduce their work hours schedule; NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. The Voluntary Separation and Reduced Work Hours Program attached hereto as Exhibit A is hereby approved. SECTION 2. Severa b ilitv. If anyone or more sections, subsections, or sentences of this ordinance are held to be unconstitutional or invalid, such decision shall not affect the validity of the remaining portion of this ordinance and the same shall remain in full force and effect. SECTION 3. Effective Date. This ordinance shall take effect and be in force ten (10) days from and after its passage, approval and publication as provided by law. PASSED by the City Council the 1td.AJ dayof lJ.Jrrn~ ,2009 ;0:~/a (~~~,~c/ CECIL McCONNELL, Council/President Approved this /IAT.A~ day of .iLt pt;~ , 2009 ~ ,II~ c'-7 // V-e..-t/(/ ~ /;" t~--Vv'v'1_~/t/ CECIL McCONNELL, Mayor Pro Tern I Voluntary Separation and Reduced Work Hours Program ATTEST: ~~~ CAR ETGE, ity Clef APPROVED AS TO FORM: ~I~A1t~<Hey ~ PUBLISHED the ,;l~t; day of ~~~ EFFECTIVE the fa day of (~~~-AJ ORDINANCE NO. -57)90 ,2009 ,2009 R:\Legal\Legal\Ordinances\Finance\Voluntary Separation and Reduced Work Hours Ord.doc 2 Voluntary Separation and Reduced Work Hours Program CITY OF BREMERTON VOLUNTARY SEPARATION AND REDUCED WORK HOURS PROGRAM This program gives the Mayor or Mayor Pro Tern ("Mayor") the option to offer incentives to . employees to voluntarily separate from employment, either through retirement or resignation and to offer employees the option to voluntarily work reduced hours. I. GENERAL PARAMETERS OF THE PROGRAM Purpose The purpose of the Voluntary Separation and Reduced Work Hours Program is to secure short and long term labor cost savings while providing employees that choose to leave the organization an incentive to do so and provide an organizational structure that will provide remaining employees opportunities for near and longer term success while maintaining City services to our Citizens. Labor Agreements Participation for employees covered by a collective bargaining agreement depends on the provisions of that agreement and approval of the respective labor union or guild. Availability The City will consider requests to participate in the voluntary separation and reduced work hours program that are submitted no later than October 30, 2009. Employees shall submit their requests to the Human Resources Manager with a copy to their department director. Employees requesting voluntary separation must separate from employment with the City no later than June 30,2010. Employees requesting reduced work hours must begin the reduced work hour schedule effective January 1, 2010. Management Tools The voluntary program is a management tool, not an employee right. No employee shall have a contractual right to an incentive offered through this program. Participation and Eligibility Participation in the program is entirely voluntary. To be minimally eligible for the voluntary separation or the reduced work hours program, an employee must have regular, full-time status and be a non-probationary employee. City Approval Participation in the program requires approval of the employee's department director or designee, and the review and approval of the Director of Financial Services, the Human Resources Manager, City Attorney and Mayor. Page 1 of 4 Approval Criteria City Approval is subject to consideration of the following criteria: · Ability of City to continue to deliver desired City services. · Retention of adequate levels of skilled, talented employees in needed occupations and locations to deliver desired services. · Reduction of management, supervisory and overhead positions. · Difficulty or cost of replacing employees with particular skills or knowledge requirements or in certain locations. · Potential disruption due to the overall loss of experienced workers. · Short and long term savings resulting from individual separations and the program collectively. · The voluntary program shall not be targeted on the basis of individual or personal factors. Final approval for any employee requesting separation or reduced work hours is conditioned upon execution of a written agreement between the City, the Employee and respective labor union or guild as applicable acknowledging the terms and conditions of the program. Unemployment Compensation Employees requesting and receiving City approval for a voluntary separation or reduced work hours are ineligible for unemployment compensation. Repayment Any employee who returns to City employment or service within five years (as an employee or contractor) after executing an employment separation agreement resulting from this program must repay the amount of compensation resulting from the separation agreement. An exception to this provision maybe granted, with the approval of the Director of Financial Services and the Mayor prior to employment or contract with the City. Exceptions granted to this provision may require partial repayment of the incentive on a pro-rata basis. Effect on Retirement System Voluntary separation agreements cannot propose or require changes to current pension statutes, and cannot increase the City's pension contribution rates. Any separation payment must be a lump sum payment, excluding any payments or agreed to withholdings for COBRA or extended medical and dental benefits. Any separation payments will be subject to applicable withholdings, but will not be considered income for retirement (average final compensation) purposes. II. VOLUNTARY SEPARATION Concept and Goals Voluntary separation gives the City the option to consider an employees' request to voluntarily separate from City employment through either retirement or resignation. The goals of voluntary separation are to reduce short and long term compensation costs, as well as to facilitate redeployment, reorganization, and other efforts to make more effective use of the City's human resources. This is not an early retirement program. Voluntary separation is not to be used to target employees on the basis of individual or personal factors. Voluntary separation must result Page 2 of 4 in short and long term cost savings to the City. Basic Provisions · Voluntary separation shall not be targeted on the basis of individual or personal factors. · Voluntary separation will be subject to the terms and conditions oflabor agreements as applicable. · Employees requesting voluntary separation will sign a form indicating that their decision to participate is entirely voluntary and that they fully understand the limitations and costs associated with re-employment and other restrictions. · City approval of employee requests will be conditioned on measurable short and long term savings to the City. Early Separation Incentives To provide an incentive to employees to request early separation, the City offers employees "separation pay" and "additional compensation" as described below. Additionally, the City will allow employees, if they choose, to apply their separation incentives to pay eligible COBRA benefits and/or to pay extended medical and dental premiums. · Union employees will receive separation pay pursuant to the formula set forth in BMC 2.50.090 as if an "at will" employee as follows: . up to 2 full years of employment, 2 months pay · 2 full years through 5 full years of employment, 2.5 months pay . over 5 full years of employment, 3 months pay · Management and professional staff will receive separation pay pursuant to the formula set forth in BMC 2.50.090 as would normally be provided to them upon separation plus one additional month's pay. · Additionally, the City will pay employees who voluntarily separate under this program additional compensation in the amount of $400 for each year of full time service with the City up to a maximum of$12,000. · The effective date of separation will be used to determine full years of employment. · The total compensation resulting from the separation pay incentive and the additional compensation incentive will be paid to the employee as; 1. a lump sum, subject to applicable withholding; 2. COBRA payments up to the available incentive pay amount, with any remainder paid as a lump sum, subject to applicable withholding; or 3. COBRA and extended medical and dental coverage premiums, with any remainder paid as a lump sum, subject to applicable withholding. III. VOLUNTARY REDUCED WORK HOURS Concept and Goals Voluntary reduced work hours give the City the option to consider an employee's request to voluntarily reduce their hours. The goals are to reduce compensation costs, retain experienced workers, as well as to facilitate redeployment, reorganization, and other efforts to make more effective use of the City's human resources. Basic Provisions Page 3 of 4 . The voluntary reduced work hours shall not be targeted on the basis of individual or personal factors. . The voluntary reduced hours will be subject to the terms and conditions oflabor agreements as applicable. . Employees requesting voluntary reduced hours will sign a form indicating that their decision to participate is entirely voluntary and that they fully understand the restrictions. . If an employee voluntarily accepts reduced hours, the position will remain authorized as a full time 40 hour per week position. . If the City approves the employees' request for voluntarily reduction in work hours, the employee cannot reinstate the 40 hour work week schedule for one (1) year unless otherwise approved by the Mayor. Otherwise, the work week will be reinstated to a 40 work week schedule after one (1) year. The City can reinstate the 40 hour work week schedule at any time when it is in the best interests of the City. . Upon approval of a reduced work hours schedule, the employee's pay, vacation and sick leave and other benefits related to hours worked shall be reduced proportionately, except that the employee's vacation and sick leave will not be reduced if the employee works, on an annual basis, the equivalent of at least 36 hours per week. Medical, dental and vision (if applicable) benefits shall not be reduced. The employee's retirement will also be affected due to the reduction in compensation resulting from the reduction in hours worked. R:\Legal\Legal\Ordinances\Finance\Voluntary Separation and Reduced Work Hours Program-Fina1.doc Page 4 of 4 AFFIDAVIT OF PUBLICATION Account # 42742 AD# 253046 ST ATE OF WASHINGTON COUNTY OF KITSAP I, Laura Wessels, being first duly sworn on oath, deposes and says: That she is now, and at all times embraced in the publication herein mentioned was the principal clerk of the printers and publishers of KITSAP SUN; that said newspaper has been approved as a legal newspaper by order of the Superior Court of the County of Kitsap, in which Countyit is published and is now and has been for more than six months prior to the date of the publication hereinafter referred to, published in the English language continually as a daily newspaper in Bremerton, Kitsap County, Washington, a weekly newspaper in Kitsap County, Washington and is now and during all of said time, was printed in an office maintained in the aforesaid place of publication of said newspaper; that the following is a true text of an advertisement as it was published in regular issues (and not in supplement form) of said newspaper on the following date, to wit: A September 21, 2009 and that such newspaper was regularly distributed to its subscribers during all of said period. That the full amount of the fee charged for the foregoing ublication is the sum of$34.74. This amount has not been paid in full. Notary Public in and for the State of Washington, Kitsap County. ~\\\""It"""'l ,,\\\\\ slAr/f."'~ -" ') t-............:tf-f: ,- /' ....~'S.IO. ~.....~.i~ Subscribed and sworn to before me this day of September 28,2009. / /~~ ~':" ) .. ! i '~"" . '-'~A~\ ""'ut ./ 1"~'~ 05 ~~,,"~I I' ();......~....~~~ #' WA S,,\,,\,\\'~ .. , '"1\11\\\ (Signature of Principal Clerk) ORDINANCE NO. 5090 AN ORDINANCE of the City Council of the City of Bremerton, Washington, approving the Voluntary Separation and Reduced Work Hours Program. PASSED by the City Council the 16th day of September, 2009 The full text of this ordinance is available from the City Clerk's Office, 345 Sixth Street, Suite 600, Bremerton, W A 98337. September 21, 2009..................AD #20092269