Resolution No. 6657362
RESOLUTION NO. 6657
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CYPRESS AND
ACTING AS EX- OFFICIO BOARD OF DIRECTORS OF THE CYPRESS RECREATION
AND PARK DISTRICT, AUTHORIZING THE IMPLEMENTATION OF AN EARLY
RETIREMENT /RESIGNATION INCENTIVE FOR EXECUTIVE MANAGEMENT,
MID - MANAGEMENT AND CONFIDENTIAL EMPLOYEES
WHEREAS, declining sales tax revenues and increases in required pension
contributions are projected to result in budget deficits for General Fund operations beginning in
the upcoming fiscal year; and
WHEREAS, personnel costs comprise approximately two - thirds of the City's operating
budget and reducing personnel costs is necessary to insure a balanced budget; and
WHEREAS, an Early Retirement/Resignation Incentive program has been identified as
a viable mechanism for reducing personnel costs; and
WHEREAS, positions within the classifications of Executive Management, Mid -
Management and Confidential positions have been identified as eligible for the Early
Retirement/Resignation Incentive Program; and
WHEREAS, the Early Retirement/Resignation Incentive will be comprised of a one -time
$20,000 pre -tax medical contribution to cover future eligible medical expenses and an
enhanced cash out of sick leave ranging between 25 percent and 75 percent of accrued sick
leave balances; and
WHEREAS, the Early Retirement/Resignation Incentive will be available to eligible
employees through March 15, 2018 with a separation date of no later than June 30, 2018; and
WHEREAS, once the resignation is submitted and accepted, employees will be
required to sign a waiver and release agreement; and
WHEREAS, all resignations are final and irrevocable.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Cypress,
and acting as ex- officio governing Board of Directors of the Cypress Recreation and Park
District, does hereby resolve as follows:
Authorize and approve an Early Retirement/Resignation Incentive for eligible Executive
Management, Mid - Management and Confidential employees in accordance with the attached
Exhibit A.
PASSED AND ADOPTED by the City Council of the City of Cypress, and acting as ex-
officio Board of Directors of the Cypress Recreation and Park District, at a regular meeting
held on the 8th day of January, 2018.
ATTEST:
CITY CLERK OF THE CITY OF CYPRESS
STATE OF CALIFORNIA }
COUNTY OF ORANGE } SS
OR 0 THE CITY OF CYPRESS
I, DENISE BASHAM, City Clerk of the City of Cypress, DO HEREBY CERTIFY that the
foregoing Resolution was duly adopted at a regular meeting of the said City Council held on the
8th day of January, 2018, by the following roll call vote:
AYES: 5 COUNCIL MEMBERS: Johnson, Morales, Yarc, Berry, and Peat
NOES: 0 COUNCIL MEMBERS: None
ABSENT: 0 COUNCIL MEMBERS: None
CITY CLERK OF THE CITY OF CYPRESS
363
EXHIBIT A
TERMS AND CONDITIONS OF THE EARLY RETIREMENT /RESIGNATION INCENTIVE
The City of Cypress is offering a one -time, Early Retirement/Resignation Incentive to
eligible Executive Management, Mid - Management and Confidential employees. The
incentive is strictly voluntary and is available to employees who meet the following
requirements:
1. Minimum of 50 years of age as of January 1, 2018; and
2. Have a minimum five (5) years of continuous service with the City of Cypress as
a full -time employee.
The terms are as follows:
1. Pre -tax, one -time payment in the amount of $20,000 into a Retiree Health
Savings Plan account for use by the employee to cover future eligible medical
expenses; and
2. An enhancement of the current Sick Leave Payout, as outlined below.
3. Employees who are interested in accepting the incentive must submit a notice of
resignation by March 15, 2018.
4. Resignation must be effective no later than June 30, 2018.
5. Once the resignation is submitted and accepted, employees will be required to
sign a waiver and release agreement. All resignations are final and irrevocable.
Current Sick Leave Payout Provisions
• Employees with a minimum of 480 hours of sick leave accumulation are entitled
to receive 50% compensation for that accumulation.
• Employees with between 240 and 480 hours of sick leave accumulation are
entitled to receive payment for the difference between that amount and 240
hours at 50% compensation.
Sick Leave Payout Provisions for Employees Participating in the Early
Retirement/Resignation Incentive
• Employees with a minimum of 480 hours of sick leave accumulation are entitled
to receive 75% compensation for that accumulation.
• Employees with less than 480 hours of sick leave accumulation are entitled to
receive 25% compensation for that accumulation.
The changes to the sick leave provisions and the offers contained in this Exhibit A are for
the sole purpose of the Early Retirement/Resignation Incentive and will only be applicable
to eligible employees for the duration of the incentive period described above.