Explanation
Background:
In light of the extraordinary budget challenges facing the City's general fund budget in fiscal year 2009 it is 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 resulting from any projected budget deficit.
The Human Resources Department, in collaboration with the Department of Finance and Management, has explored the feasibility of implementing a one-time voluntary employee severance plan that would result in significant projected cost savings in FY 2009. Based on its local experience in the successful implementation of an employee severance plan for Columbus City Schools in FY 2004 and 2006, Human Resources contacted Educators Preferred Corporation, a employee benefits consulting firm with a proven track record of over 30 years experience implementing employee severance plans for municipalities and school districts throughout the country. Utilizing city-specific payroll data, EPC prepared a feasibility study that projects significant cost savings for FY 2009 and beyond.
This ordinance waives the provisions of competitive bidding. Implementation of an employee severance plan is a complicated and specialized service for which it would be extremely difficult to develop and evaluate specifications. Educators Preferred Corporation has a proven track record of over 30 years experience implementing employee severance plans for municipalities and school districts throughout the country. The company has local experience in the successful implementation of an employee severance plan for Columbus City Schools. Finally, it is imperative that this program be implemented as...
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