Staff recommends approval of the early retirement request of Lt. George M. Jacobs as submitted.
The financial and economic challenges forced upon us by the economic crisis of 2007-08 continue to affect the ongoing operations of the City. These challenges have forced management to look for ways to create financially viable solutions without affecting departmental efficiency and productivity. During the last early retirement option several Fire Department employees, who did not meet the cut-off at that time, voiced their interest in future early retirement options, including Lt. Jacobs. During budget considerations for fiscal year 2010-11 the following offer was made to Lt. Jacobs as a possible retirement option:
· 60% of current salary ($41,775)
· Pay out of all accrued Paid Time Off (PTO), Long Term (Sick) Bank (LTB), etc., as outlined in Policy/Collective Bargaining Agreement (CBA)
· Health Insurance Coverage for 18 months
Lt. Jacobs requested information regarding his retirement benefits from the Fire Pension Board which was not received until December 2010. Upon receipt of the information from the Fire Pension Board, Lt. Jacobs requested reconsideration of his early retirement offer.
Throughout the latter half of fiscal year 2009-10, staff sought relief from the financial constraints placed upon General Fund resources due to the SAFER Grant. Unfortunately, staff was recently advised by Washington that grant requirements would not be relaxed to provide any economic relief or benefit to the City. Although the opinion rendered by Washington was too late to incorporate into the fiscal 2010-11 budget it did not deter staff from seeking other alternatives to preserving vital General Fund resources. Since staffing must be maintained under the constraints of the SAFER grant and fiscal savings can be achieved over time, the following modified retirement option is presented for your consideration:
$50,000 payout to be issued in two (2) payments:
1) $21,721.00 + accrued benefit payouts approximating $6,000 as outlined in current policy/CBA upon separation (January 14, 2011 retirement date payable January 21, 2011)
2) $28, 279.00 paid October 3, 2011 (First business day October, 2011)
Acceptance by Lt. Jacobs allows the City to bring Firefighter Rinehart back from the Utility Locator position in the Gas Department and use him once again as a firefighter
1. Authorize the early retirement package of Lt.. Jacobs of $50,000.00 to be paid in two payments. A payment of $21,721.00, plus accrued benefits approximating $6,000.00 as outlined in current policy/CBA upon separation; and the balance $28,279.00 to be paid October 3, 2011; or
2. Such alternative action as the Commission may deem appropriate.
This early retirement of a Lieutenant will allow the fire department to move personnel through the ranks based on established requirements. The pay-out for Lt. Jacobs and the savings achieved from salary differences will be expenditure neutral (no impact) in fiscal year 2010-2011. In fiscal year 2011-12 the city will see approximately $10,000.00 in savings after the 2nd payment of $28,279.00 is made to Lt. Jacobs. By fiscal year 2012-13, all payments will have been made to Jacobs, and the city will recognize the full yearly savings from the retirement of Lt. Jacobs which will aproximate $39,000.00. In addition Lt. Jacobs will be financially responsible for obtaining and providing his own health insurance.
Prepared by: ______________________
Attachments: Yes____ No ______
Advertised: ____Not Required ______
Attorney Review : Yes___ No ____
Reviewed by: Dept. Head ________
Finance Dept. _______JB_________
Deputy C.M. ___________________
City Manager ___________________
Account No. _________________
Project No. ___________________
WF No. ______________________
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA, AUTHORIZING THE CITY MANAGER TO OFFER EARLY RETIREMENT TO LT. GEORGE M. JACOBS OF $50,000.00 TO BE PAID IN TWO PAYMENTS, ONE PAYMENT OF $21,721.00 PLUS PAID TIME OFF (PTO), LONG TERM (SICK) BANK (LTB) AND OTHER BENEFITS AS OUTLINED IN CURRENT POLICY/COLLECTIVE BARGAINING AGREEMENT (CBA) UPON SEPARATION; AND THE BALANCE OF $28,279.00 TO BE PAID OCTOBER 3, 2011; AND PROVIDING AN EFFECTIVE DATE.
BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA:
THAT the City Manager is authorized to offer early retirement to Lt. George M. Jacobs of $50,000.00 to be paid in two payments, one of $21,721.00, plus Paid Time Off (PTO), Long Term (Sick) Bank (LTB), etc., as outlined in current Policy/Collective Bargaining Agreement (CBA) upon separation; and the balance $28,279.00 to be paid October 3, 2011.
THAT this resolution shall become effective immediately.
PASSED AND ADOPTED by the City Commission of the City of Leesburg, Florida, at a regular meeting held the 20 day of December, 2010.