AGENDA MEMORANDUM

Meeting Date:              June 23, 2008

From:                           Edward F. Smyth, Jr., Deputy City Manager

Subject:                       Resolution Amending Personnel Policy No 820 – Reduction in Force and Recall

Staff Recommendation:

Staff recommends approving the policy amendment.

Analysis:

The policy was adopted by the City Commission in October 2005 as a part of the modernization of the Personnel Policies.  Much of the language and provisions in the policy was brought into the new policy.

Section B of the policy “Procedures” describes the steps necessary to ensure the proper reduction in force (RIF).  Section B.5. does not permit the City to offer and/or pay any type of severance to employees involved in a RIF.  The section is not in keeping with the City’s Core Values, the 5^th of which states that “We Value a Caring Organization.  An organization that cares about its employees will do everything possible for them when they transition out due to a layoff.  This includes providing them a reasonable severance package when appropriate and possible.  The policy amendment will enable the City to offer a severance package to employees who are facing layoff due to Amendment 1 and the economic downturn.

Options:

1.  Approve the Policy change:   or

2.  Such alternative action as the Commission may deem appropriate

Fiscal Impact: 

There is no fiscal impact unless there is a Reduction in Force and a Severance is offered to those employees.

Submission Date and Time:    6/20/2008 4:48 PM____

Department: Administration Prepared by:  EF Smyth, DCM                      Attachments:         Yes____   No ______ Advertised:____Not Required ______ Dates:_________________________ Attorney Review :       Yes___  No ____ _______________________________ Revised 6/10/04

Reviewed by: Dept. Head ________ Finance  Dept. __________________ Deputy C.M. ________EFS________                                                                          Submitted by: City Manager ___________________

Account No. _________________ Project No. ___________________ WF No. ______________________ Budget  ______________________ Available _____________________

RESOLUTION NO._______________

A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA, ADOPTING AN AMENDMENT TO THE REDUCTION-IN-FORCE AND RECALL POLICY (NO. 820); AND PROVIDING AND EFFECTIVE DATE.

WHEREAS, the City of Leesburg has adopted the Leesburg Personnel Policy Manual; and

WHEREAS, an amendment to Policy 820 – Reduction-In-Force and Recall is recommended by the City Manager for consideration and adoption.

BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA:

            THAT an amendment to Policy 820 to eliminate the prohibition on severance packages (Paragraph B.5) is approved.

             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   23^rd   day of    June   2008.

                                                                            __________________________

                                                                             Mayor

ATTEST:

__________________________

City Clerk

REDUCTION-IN-FORCE AND RECALL

POLICY:

Changes in politics, changes in service to be provided or service levels, reduced taxes or income, changes in technology or other unforeseen circumstances may require adjustments in staff levels by means of a personnel reduction-in-force (RIF). Before competent employees are separated due to lack of work, the City will explore reasonable possibilities for reassignment. Liaison concerning this subject will be maintained with the Human Resources Department by supervisors to accomplish any possible inter department transfers of personnel.

A. DEFINITIONS

Reductions-in-force (RIF) includes two different situations:

1.               Temporary Reduction. Work is no longer available, but recall to work is expected within 12 months.

2.               Permanent Reduction. Work is no longer available. Recall to work is not expected. (This occurs with job elimination, the expiration of contract, the termination of a program, the elimination of a department and similar events.)

B. PROCEDURE

These procedures will guide decreases in the workforce:

1.  When the number of employees must be reduced, employee performance will generally govern. Where two or more employees are of similar ability, length of service may also be a consideration.

2.   The City may occasionally retain certain employees without regard to length of service because of the employee’s special knowledge, skill, training, or experience.

3.   When possible, two weeks notice will be given to employees scheduled to be separated due to RIF.

4.   Employees on temporary reduction will retain benefit credit for benefit plan purposes, provided the employees are actually recalled within 12 months. An employee may, however, elect to receive pay for accrued benefits at the same rate and in the same manner as a separated employee at the time of the reduction.

5.   Employees on RIF separation are not eligible for severance pay.

These guidelines will guide increases in the workforce due to recall:

1.   Before hiring new employees outside the City, recall from RIF will be made of qualified employees separated within the past 12 months. An employee will be considered qualified if, in management’s sole discretion, a reasonable period of training can be expected to lead to qualification.

2.   When considering recall of employees with similar skills and abilities to positions for which they qualify, past performance and date of hire, wi1l be considered as primary selection criteria. Employees recalled will be required to serve a new orientation period.

3.   An employee to be recalled will be notified by certified letter sent by the Human Resources Director. Telephone contact may also be used by the Human Resources Department, as appropriate. If the employee does not contact the City to make satisfactory arrangements or return to work within five working days of the mailing date of the letter, the employee will be terminated and will be eligible for reinstatement to the recall list only if some exceptional circumstances prevented the employee from responding.