City of Columbus - File #: 0107-2011

• File #: 0107-2011
• Version: 1
• Type: Ordinance
• Status: Passed
• File created: 1/13/2011
• In control: Administration Committee
• On agenda: 2/7/2011
• Final action: 2/9/2011
• Title: To authorize the expenditure of $475,495.00 from the General Fund, or so much thereof as may be necessary to pay third of three payments to Educators Preferred Corporation (EPC) to administer the 2008 severance plan; to waive the competitive bidding provisions of the Columbus City Codes; and declare an emergency. ($475,495.00)

Date	Ver.	Action By	Action	Result
2/9/2011	1	CITY CLERK	Attest
2/8/2011	1	MAYOR	Signed
2/7/2011	1	Columbus City Council	Approved	Pass
2/7/2011	1	COUNCIL PRESIDENT	Signed
1/27/2011	1	Auditor Reviewer	Contingent
1/27/2011	1	CITY AUDITOR	Reviewed and Approved
1/27/2011	1	HR Drafter	Sent for Approval
1/27/2011	1	CITY ATTORNEY	Reviewed and Approved
1/27/2011	1	HR Drafter	Sent to Clerk's Office for Council
1/26/2011	1	EBOCO Reviewer	Reviewed and Approved
1/26/2011	1	ODI DIRECTOR	Reviewed and Approved
1/26/2011	1	HR Drafter	Sent for Approval
1/24/2011	1	FINANCE DIRECTOR	Reviewed and Approved
1/24/2011	1	HR Drafter	Sent for Approval
1/21/2011	1	Finance Reviewer	Reviewed and Approved
1/19/2011	1	Finance Reviewer	Reviewed and Approved
1/19/2011	1	Finance Reviewer	Reviewed and Approved
1/18/2011	1	HR DIRECTOR	Reviewed and Approved
1/18/2011	1	HR DIRECTOR	Reviewed and Approved
1/18/2011	1	HR Drafter	Sent for Approval

Explanation

In light of the extraordinary challenges facing the City of Columbus' 2009 general fund budget, City Council passed legislation Ordinance No. 1622-2008 on October 27, 2008. This legislation 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.

Sixty-five (65) city employees elected to participate in the plan resulting in a cost savings to the City of approximately $3.3 million in 2009. Plan participants received either a one-time lump sum payment or incremental payments for a period of up to 5 years (depending on age).

As a component of the plan implementation process EPC utilized 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. On March 9, 2009 City Council passed Ordinance No. 0294-2009 which, among other things, authorized the Human Resources Department to establish the city's funding account into which these payments and appropriate withholdings are made for the severance plan participants. As a result, in 2009, the Human Resources Department made the first of three payments to EPC, totaling $1,657,875.89. On February 22, 2010 City Council passed Ordinance No. 0241-2010 which authorized the second of three payments to be made in the amount of $515,000, or so much thereof as may be necessary.

This ordinance authorizes the expenditure of $475,495.00, or so much thereof as may be necessary, from the Human Resources Department General Fund in order that payments may be made through the third and final year of the plan.

This ordinance is submitted as an emergency so as to allow the financial transaction to be posted in the City's accounting system as soon as possible. Up to date financial posting promotes accurate accounting and financial...