City of Columbus - File #: 0294-2009

• File #: 0294-2009
• Version: 1
• Type: Ordinance
• Status: Passed
• File created: 2/19/2009
• In control: Administration Committee
• On agenda: 3/9/2009
• Final action: 3/12/2009
• Title: To authorize the transfer of $35,000 from the Department of Recreation and Parks to the Department of Human Resources; to authorize the transfer of $159,939.02 from the Department of Finance and Management to the Department of Human Resources; to authorize the Human Resources Director to enter into an agreement modification with Educators Preferred Corporation (EPC) and Metropolitan Life Insurance Company (MetLife) to establish a severance plan "Funding Account" from which payments and appropriate withholdings are made for plan participants; to authorize the expenditure of $1,814,673.25 from the General Fund, or so much thereof as may be necessary to pay the cost of said agreement; to authorize the appropriation, encumbrance and expenditure of up to $1,193,851.56 from the Special Income Tax Fund; to waive the Columbus City Code provisions for competitive bidding; and declare an emergency.

Date	Ver.	Action By	Action	Result
3/12/2009	1	ACTING CITY CLERK	Attest
3/10/2009	1	MAYOR	Signed
3/9/2009	1	Columbus City Council	Approved	Pass
3/9/2009	1	COUNCIL PRESIDENT	Signed
3/6/2009	1	HR Drafter	Sent for Approval
3/6/2009	1	CITY ATTORNEY	Reviewed and Approved
3/6/2009	1	HR Drafter	Sent to Clerk's Office for Council
3/5/2009	1	HR Drafter	Sent for Approval
3/5/2009	1	Auditor Reviewer	Reviewed and Approved
3/5/2009	1	CITY AUDITOR	Reviewed and Approved
3/5/2009	1	HR Drafter	Sent for Approval
3/5/2009	1	HR DIRECTOR	Reviewed and Approved
3/5/2009	1	HR Drafter	Sent for Approval
3/5/2009	1	Finance Reviewer	Reviewed and Approved
3/5/2009	1	Finance Reviewer	Reviewed and Approved
3/5/2009	1	FINANCE DIRECTOR	Reviewed and Approved
2/26/2009	1	HR Drafter	Sent for Approval
2/26/2009	1	HR DIRECTOR	Reviewed and Approved
2/26/2009	1	HR Drafter	Sent for Approval
2/26/2009	1	Finance Reviewer	Reviewed and Approved
2/26/2009	1	Finance Reviewer	Reviewed and Approved
2/26/2009	1	FINANCE DIRECTOR	Reviewed and Approved
2/26/2009	1	HR Drafter	Sent for Approval
2/25/2009	1	Auditor Reviewer	Reviewed and Disapproved
2/24/2009	1	EBOCO Reviewer	Reviewed and Approved
2/24/2009	1	ODI DIRECTOR	Reviewed and Approved
2/24/2009	1	HR Drafter	Sent for Approval
2/23/2009	1	HR Drafter	Sent for Approval
2/23/2009	1	Finance Reviewer	Reviewed and Approved
2/23/2009	1	Finance Reviewer	Reviewed and Approved
2/23/2009	1	FINANCE DIRECTOR	Reviewed and Approved
2/23/2009	1	HR Drafter	Sent for Approval
2/20/2009	1	HR DIRECTOR	Reviewed and Approved

Explanation

In light of the extraordinary challenges facing the City of Columbus' general fund budget in fiscal year 2009 it was imperative that a number of cost containment measures be considered and, where feasible, implemented. Salary and benefits costs represent approximately 80-85% of the general fund budget. The implementation of voluntary employee severance plans in municipalities and school districts have proven to be effective cost containment measures that reduce personnel costs and potentially reduce the number of layoffs that may result from any projected budget deficit.

To that end, on October 27, 2008 Council authorized the Human Resources Department to enter into contract with Educators Preferred Corporation (EPC) to design and implement a one-time voluntary employee severance plan. Pursuant to this contract EPC, on behalf of the City, extended the opportunity to participate in a voluntary severance plan to approximately 450 eligible (20 years or more service) general fund employees. The enrollment period was from November 4 to December 26, 2008. During this period, EPC conducted counseling sessions, prepared PERS retirement projections where applicable, and coordinated all the administrative and procedural aspects of the severance plan implementation for eligible participants.

Sixty-five (65) city employees elected to participate in the plan resulting in a cost saving to the City of approximately $3.3 million in 2009. Plan participants will receive a lump sum or incremental payments for a period of up to 5 years (depending on age). As a component of the plan implementation process EPC utilizes Metropolitan Life Insurance Company (MetLife) to secure monthly payments to participants and establish a severance plan "Funding Account" from which payments and appropriate withholdings are made for plan participants.

This ordinance authorizes the transfer of $35,000 from the Department of Recreation and Parks to the Department of Human ...