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HomeMy WebLinkAboutRes 1723 - Voluntary Separation ProgramCity of Tukwila Washington Resolution No. l 72_3 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, APPROVING AND ADOPTING A VOLUNTARY SEPARATION PROGRAM. WHEREAS, the City of Tukwila is currently undergoing an unprecedented budget crisis caused by a recession and unfavorable state taxation policies and, as a result, a long -term budget shortfall of $9 million per year has been identified; and WHEREAS, City Councilmembers met in February, 2010 for a budget retreat to study the current budget situation and its affect on the long -term ability of the City to continue to provide essential services to the City. During this retreat, Councilmembers expressed the importance of taking a balanced approach in closing the current budget gap and as such will be focusing on ways to increase revenues, program reductions, and reviewing overall the cost of staff compensation; and WHEREAS, a Voluntary Separation Program has been proposed as a potential cost - savings mechanism by both the union bargaining groups and City Administration; and WHEREAS, the proposed incentives will expire on September 30, 2010; and WHEREAS, a Voluntary Separation Program would reduce the overall cost of employee compensation; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Voluntary Separation Program Adopted. The Voluntary Separation Program, a copy of which is attached hereto as Exhibit A, and by this reference fully incorporated herein, is hereby approved and adopted, effective the date set forth below. City staff is hereby authorized and directed to implement the program in accordance with its terms. PASSED BY THE CITY COUNCIL F THE CITY OF TUKWILA, WASHINGTON, at a Special Meeting thereof this 0/ day of L-a_-f= , 2010. ATTEST/ AUTHENTICATED: �,Yhw.srti cam,.+ Melissa Hart, Acting City Clerk APPROVED AS TO FORM BY: -32 -400 Office-of t ,��ity s -g �." i e 0$1/ can r uinn, Acting Council President Filed with the City Clerk: /0 Passed by the City Council: ;1-3 l U Resolution Number: j -723 Attachment: Exhibit A, Voluntary Separation Program W. Word Processing \Resolutions\ VSP - 2010.doc SB:mrh 8/20/2010 Page 1 of 1 Attachment A City of Tukwila VOLUNTARY SEPARATION PROGRAM Parameters of the Voluntary Separation Program are: Participation in the program is entirely voluntary. To be eligible for this program, the employee must be a regular full -time or part-time non - probationary employee. Participation is subject to the review of the employee's department director and the approval of the City Administrator and the HR Director. The Voluntary Separation Program is a management tool, not an employee right and is a time - limited program. Voluntary separation shall not be targeted on the basis of individual or personal factors. Employees requesting voluntary separation will sign a form indicating that their decision to participate is entirely voluntary and that they understand the limitations and costs associated with re- employment and other restrictions. This voluntary program is available from September 1, 2010 to September 30, 2010. Written requests for participation in this program must be sent to your Department Director and received by close of business on September 30, 2010. Criteria for Approval: City approval is subject to review pursuant to the following criteria: A. Retention of adequate levels of skilled and talented workers in needed positions and locations. B. Retention of positions and sills that are necessary to achieving the Department's mission and priorities. C. Potential disruption due to loss of experienced workers D. Overall cost of the program. Incentive for Voluntary Separation: Participants are able to choose one of the following three options for their incentive: • Three (3) months of his /her base salary • Two (2) months of his /her base salary plus 50% cost -share by the City of COBRA* premiums for nine (9) months • Two (2) months of his /her base salary plus 75% cost -share by the City of COBRA* premiums for six (6) months *Federal law requires that group insurance health plans give their employees and their covered dependents the opportunity to continue health insurance on a self -pay basis when there is an event that would result in the loss of that coverage. Attachment A Participants choosing an incentive option with a COBRA cost -share would only be responsible for paying a portion of the monthly premium. If you do not choose an incentive option with COBRA coverage all other COBRA provisions would apply, and participants would still be eligible for the opportunity to continue their coverage for a total of 18 months. For more information about COBRA, please contact the HR staff. The salary amount is calculated on the base pay of the participant. Longevity, specialty pay, and other pay programs are not included in the salary amount. The Washington State Employment Security Department will not consider this separation a qualifying event for purposes of filing for unemployment benefits. The Washington State Department of Retirement Systems will not consider the lump sum incentive payment participants will receive under this program as compensation for the purposes of service credit or earnings for pension calculations. If an employee returns to the City of Tukwila as a City employee within 3 years, he /she will be required to repay the incentive payment. The lump sum incentive payment issued will have all applicable withholdings (FICA and Federal Income Tax) taken from the payment. Employees will have a maximum of 45 days to make their decision to participate in the Voluntary Separation Program and seven days from their written decision to revoke it. A decision to participate must made by or before November 22. 2010. Once this decision is made by signing the Voluntary Separation Agreement an employee will have 7 calendar days to revoke their decision. The City will cash out any leave accruals per applicable City policy. There will be no leave accrued on the lump sum incentive payment. All recommendations for acceptance of a request for voluntary separation will be reviewed and must be approved by the City Administrator and the HR Director. Their decision regarding acceptance is final. Final approval for any employee utilizing this program is conditioned upon execution of a written agreement between the city and the employee acknowledging the terms and conditions of the program including a hold harmless agreement. Positions vacated by this program will not be eliminated; however, the position will be vacant for a minimum of 3years, unless otherwise approved by the City Council. This Voluntary Separation Agreement "Agreement is entered into between "Employee and the City of Tukwila "City who agree as follows: 1. Voluntary Separation Date. The parties agree that the Employee resigns and Employee's employment with the City is voluntarily terminated effective 2. Payment. The City agrees to pay Employee the applicable payment under the City of Tukwila Voluntary Separation Program "Program provided that the Employee is eligible for the benefits under the Program and executes this Agreement: A lump sum payment of the equivalent of months of Employee's base salary. Base salary does not include any City paid benefits, specialty pay, or longevity pay. COBRA: If applicable, the City agrees to pay consecutive months. 3. Separation Not a Oualifvina Event. The Washington State Employment Security Department will not consider this separation a qualifying event for purposes of filing for unemployment benefits. 4. Lump Sum Payment. The Washington State Department of Retirement Systems will not consider the lump sum incentive payment Employee will receive under this Program as compensation for the purposes of service credit or earnings for pension calculations. 5. Return to City Service. If Employee returns to City service within three years, Employee would be required to repay the incentive payment. Limited exceptions to this may be approved by the City Administrator. Such exceptions may require partial repayment of the incentive payment. 6. Lump Sum Payment Issued in Final Paycheck. Employee's lump sum incentive payment will be issued as part of his or her final paycheck from the City on the next available normal pay date following her separation from employment. All applicable withholdings will be taken from the paycheck as required of payroll. 7. Participation in Program is Voluntary. Employee acknowledges that he or she has read and understands the provisions and restrictions of this Program and that she is participating in this Program on an entirely voluntary basis. 8. General Waiver and Release. Employee waives and releases any and all claims, known or unknown, arising on or before the date Employee signs this Agreement, that Employee W \Word Processing\Resolutions \VSP Attachment B.doc /m/08/20/10 CITY OF TUKWILA AGREEMENT OF VOLUNTARY SEPARATION Attachment B of the monthly COBRA premium for a total has or might have against the City, its Council, officers, employees, representatives and agents (collectively, "Released Parties These waived and released claims include but are not limited to: (i) claims that in any way relate to Employee's employment, separation from employment and other dealings of any kind with any Released Party or Parties; (ii) claims of unlawful discrimination, harassment, retaliation or other alleged violations arising under federal, state, local or other laws and regulations, including but not limited to claims arising under the federal Age Discrimination in Employment Act (ADEA); Older Workers Benefit Protection Act (OWBPA); Title VII of the Civil Rights Act of 1964; the Civil Rights Act of 1866; the Americans with Disabilities Act (ADA); the Fair Labor Standards Act (FLSA); THE Worker Adjustment and Retraining Notification Act (WARN); and the Family and Medical Leave Act (FMLA); (iii) claims of wrongful discharge, tort, defamation, misrepresentation, fraud, detrimental reliance, breach of alleged contractual obligations, negligence, and violation of public policy; and (iv) claims for monetary damages, other personal recovery or relief, costs, expenses and attorneys' fees of any kind. 9. Employee Advised to Consult with an Attorney. Employee acknowledges that he or she has been advised to consult with an attorney regarding the terms of this agreement, and that this agreement serves as written notification to Employee that he or she has been so advised. 10. Effective Date. Employee acknowledges that the effective date of this agreement is Month, Day., Year and that he or she had 45 days to consider this agreement and its terms. Employee further understands and acknowledges that he or she may revoke this agreement within seven (7) days of his or her execution and that if he or she chooses to revoke this agreement, he or she will be returned to her previous position with the City and will refund all payments received under the terms of this agreement. Employee acknowledges that this agreement shall not become enforceable or effective until after this revocation period has expired. 11. Employee's Decision to Revoke Nullifies Agreement. Employee acknowledges that if he or she chooses to revoke this Agreement, the Agreement is considered null and void, she will not have the opportunity to participate at a later time, and that he or she will not receive the incentive pay that the City has offered Employee. Further, Employee understands that his /her decision to revoke is irrevocable. 12. Notification in Writing. Employee acknowledges that he or she has been notified in writing that the Voluntary Separation Program is available to all full -time and part-time regular status non probationary employees regardless of individual or personal factors including age. 13. Severability. In the event that any portion of this Agreement is held by a court of competent jurisdiction to be invalid or unenforceable, the invalid or unenforceable portion shall be construed or modified in a manner that gives force and effect, to the fullest extent possible, to all other portions of this Agreement. If any invalid or unenforceable portion of any provision in this Agreement cannot be construed or modified to render it valid and enforceable, that portion shall be construed as narrowly as possible and shall be severed from the remainder of this Agreement, and the remainder of this Agreement (including the remainder of the section, -2- paragraph, subparagraph, sentence or provision containing any invalid or unenforceable words) shall remain in effect to the fullest extent possible. 14. Periods to Consider this Agreement and Revoke. Employee has been given a period of 45 calendar days in which to consider this Agreement and decide whether she wishes to sign it. After Employee signs this Agreement, Employee has seven (7) calendar days in which Employee can change her mind and revoke this Agreement. The City and Employee agree that, to revoke this Agreement, Employee must notify in writing, by hand delivery or mailed via US Postal Service in writing within the 7 -day period to: Stephanie Brown Director of Human Resources City of Tukwila 6200 Southcenter Blvd. Tukwila, WA 98188 i5 Vacation and Other Benefits. Accrued and unused vacation and compensable sick leave payments due to an employee at the time of separation shall be paid in accordance with those established policies, plans and procedures. Any other pay and benefits (health, dental, etc.) will terminate or cease upon separation in accordance with the terms of those established laws, policies, plans and procedures. 16. Governing Law. The laws of the State of Washington shall govern the validity, performance, enforcement, interpretation and any other aspect of this Agreement, notwithstanding any state's choice of law provisions to the contrary. 17. Complete Agreement. This Agreement constitutes the parties' entire agreement and cancels, supersedes and replaces any and all prior proposals, understandings and agreements (written, oral or implied) regarding all matters addresses herein, except Employee shall continue to be bound by all obligations set forth in any prior agreements, undertakings, waivers and assignments involving confidential information, inventions, non competition, non solicitation, non inducement, patents, copyrights, trademarks and other intellectual property, and compliance with laws and policies. The terms of this Agreement may not be altered or modified except by written agreement between Employee and the City. In connection with this Agreement's acceptance and execution, neither Employee nor the City is relying on any representation or promise that is not expressly stated in the Agreement. 18. Separation Date. Employee's last day of employment with the City of Tukwila will be Month, Day, Year. Employee has read this Agreement, including the waiver and release contained herein, and understands all of its terms. Employee executes it voluntarily and with full knowledge of its significance. Agreed to and signed by: Employee Stephanie Brown, HR Director Steve Lancaster, City Administrator EMPLOYEE DATE NOTICE OF REVOCATION 1) On 2010, I returned a signed Voluntary Separation Agreement (the "Agreement to Stephanie Brown, HR Director of the City of Tukwila. 2) I am aware of my right to revoke the Agreement anytime within 7 calendar days of the date set forth above by returning this signed Notice of Revocation to Stephanie Brown, HR Director of the City of Tukwila. 3) By returning this signed Notice of Revocation I am electing to revoke the Agreement. 4) I understand that the Agreement, if revoked, will not become effective or enforceable, and that I will not receive the severance benefits that was offered me by the City of Tukwila. 5) I understand that by signing below that my decision to revoke is irrevocable. By Steve Lancaster, City Administrator DATE By Stephanie Brown, HR Director DATE