Agenda 02/23/2010 Item #16E 1
Agenda Item No. 16E1
February 23, 2010
Page 1 of 6
EXECUTIVE SUMMARY
Recommendation authorizing an offering of the Voluntary Separation Incentive
Program pursuant to Collier County Ordinance No. 09-13, empowering the County
Manager to implement the program, and authorizing the Chairman to sign the
enabling Resolution.
OBJECTIVE: To authorize an offering of the Voluntary Separation Incentive Program,
empower the County Manager to implement this program, and authorize the Chairman to sign
the enabling Resolution in an effort to assist the County Manager's Agency in meeting its
financial goals.
CONSIDERATIONS: The County Manager's Agency is committed to continuing efforts to
identify cost-saving opportunities and implement programs that will successfully reduce
recurring fiscal costs throughout the organization while minimizing the impact to our employees
and each operating department. We continue to seek opportunities to streamline budget costs
for FY2010 and in preparation for budget reductions and limitations in future fiscal years. As a
result, the County Manager wishes to provide an offering of the Voluntary Separation Incentive
Plan with the intent of benefitting the organization as well as employees who elect to participate.
Over the years, the County Manager's Agency has provided a comprehensive benefit package
offering to its employees. Compensation is more than monetary, as it also includes medical,
dental and other benefits that are afforded by employment with our agency. Under this plan, the
County will continue to pay the full premium costs for the participant's health and dental benefits
for a period of up to three years, or will provide a financial incentive in lieu of benefits if the
employee so chooses. The County Attorney's Office may choose to opt-in to the program, and
employees under contract with the Board of County Commissioners or the CRA who meet
eligibility criteria may participate in the program offering.
DEFINITIONS AND GUIDELINES: The option to join the Voluntary Separation Incentive
Program will be extended to any regular full- or part-time employee scheduled to work 30 or
more hours per week who meets the eligibility criteria outlined by the Florida Retirement System
for Pension Plan members, making them eligible to retire without penalty under FRS as of
February 24,2010 or who will meet the FRS eligibility criteria no later than December 31,2010.
This does not mean that an employee must be a member of the FRS Pension plan. The
conditions for eligibility are being applied to determine the group of employees who will be
covered by this program offering. Based on current projections, approximately 155 employees
of the County Manager's Agency and County Attorney's Office would be eligible to participate in
this program.
The enrollment period is Wednesday, February 24, 2010 through Friday, April 9, 2010.
Employees may not meet the FRS eligibility criteria to participate in the program until after this
window closes, however, if they will become eligible before December 31, 2010 and wish to
participate, they must still make the election within the enrollment period.
The program will follow the same criteria and process as authorized in July 2009. Under this
plan, the County will continue to pay the full premium costs for the participant's health and
dental benefits for a period of up to three years, or will provide a financial incentive in lieu of
benefits if the employee so chooses.
Agenda Item No. 16E1
February 23, 2010
Page 2 of 6
LEGAL CONSIDERATIONS: This item has been reviewed and approved by the County
Attorney's Office. This item is legally sufficient for Board action. - CMG
FISCAL IMPACT: Fiscal impact for this program will depend on many factors, including the
number of employees who opt to participate, the salaries of these employees, whether the
employee elects benefits continuation or the monetary incentive, and other separation costs.
Based on current projections, approximately 155 employees of the County Manager's Agency
and County Attorney's Office would be eligible to participate in this program. In order to address
the potential impact, two scenarios have been identified for review and are provided below for
informational purposes.
The average fully burdened salary for a full time employee eligible to participate in this program
is approximately $73,710 per year. Based on this figure, total burdened personnel services
costs per employee for a period of three years would be $221,130. The average liability should
an employee elect coverage under the Medical and Dental insurance for three years would be
approximately $10,250 per year, or $30,750 over a period of three years. This level of savings
assumes the vacated position remains unfilled. A reduced amount of annual savings would be
realized if the position is subsequently filled at a future time at a salary level less than that of the
separating employee. Under this scenario, the Agency could realize a personnel services cost
savings of approximately $190,380 over a period of three years, or $63,460 per year per
participating employee.
If an employee elected the cash incentive plan in lieu of participation in the Medical and Dental
insurance program, the liability would be greatly reduced. Again, the total burdened personnel
services cost would be $221,130 for a period of three years. The value of the cash payment is
$5,500 per year, which would provide the employee a one-time payment of $16,500, less
applicable payroll taxes. Based on these figures, the Agency could realize a personnel services
cost savings of approximately $204,630 over a period of three years, or $68,210 per year per
participating employee.
The figures above represent an estimated cost savings; employees electing to participate will
have several options available from which to choose, and actual cost savings to the Agency will
vary based on the incentive option selected by each participant, and whether positions vacated
under the Voluntary Separation Incentive Program would remain unfilled.
GROWTH MANAGEMENT IMPACT: None.
RECOMMENDATION: That the Board of County Commissioners authorizes an offering of the
Voluntary Separation Incentive Program pursuant to Ordinance No. 09-13, empowers the
County Manager to implement this program and authorizes the Chairman to sign the enabling
Resolution in an effort to assist the County Manager's Agency in meeting its financial goals.
PREPARED BY:
Amy Lyberg, Director, Human Resources
Item Number:
Item Summary:
Meeting Date:
Agenda Item No. 16E1
February 23, 2010
Page 3 of 6
COLLIER COUNTY
BOARD OF COUNTY COMMISSIONERS
16E1
Recommendation authorizing an offering of the Voluntary Separation Incentive Program
pursuant to Collier County Ordinance No. 09-13, empowering the County Manager to
implement the program, and authorizing the Chairman to sign the enabling Resolution.
2/23/2010 9:00:00 AM
Prepared By
Amy Lyberg
Administrative Services
Division
Director.. Human Resources
Date
Human Resources
2/4/20109:49:55 PM
Approved By
Colleen Greene
County Attorney
Aaslstanl County Attorney
Date
County Attorney
2/5/20102:13 PM
Approved By
Jeff Klalzkow
County Attorney
Date
Approved By
2/9120101:25 PM
Len Golden Price
Administrative Services
Division
Administrator.. Administrative Services
Date
Administrative Services Division
2/912010 5:00 PM
Approved By
OMS Coordinator
County Manager's Office
Dale
Office of Management & Budget
2110120109:44 AM
Approved By
Leo E. Ochs, Jr.
County Managers Office
County Manager
Date
County Managers Office
2/161201012:27 PM
Agenda Item No. 16E1
February 23, 2010
Page 4 of 6
RESOLUTION NO. 2010,_
A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF
COLLIER COUNTY, FLORIDA, PROVIDING AN OFFERING OF THE
VOLUNTARY SEPARATION INCENTIVE PROGRAM AND AUTHORIZING
THE COUNTY MANAGER TO IMPLEMENT THE PROGRAM IN
COMPLIANCE WITH COLLIER COUNTY ORDINANCE NO. 09-13.
WHEREAS, the Board of County Commissioners of Collier County Florida, desires
to provide an offering of the Voluntary Separation Incentive Program to certain eligible
County employees; and
WHEREAS, the Board of County Commissioners is committed to continued efforts
to identify cost-saving opportunities to and implement programs that will successfully
reduce recurring fiscal costs while minimizing the impact to County employees and
departments; and
WHEREAS, the Board of County Commissioners has enacted Ordinance No. 09,
13, an ordinance establishing authorization and procedures for the Collier County
Voluntary Separation Incentive Program; and
WHEREAS, the County Manager is authorized to implement the Voluntary
Separation Incentive Program; and
WHEREAS, the Board of County Commissioners finds that implementing this
Voluntary Separation Incentive Plan serves a valid public purpose.
NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY
COMMISSIONERS OF COLLIER COUNTY, FLORIDA, that
The Board of County Commissioners hereby authorizes an offering of the Voluntary
Separation Incentive Program:
1. The Program is designed as a cost-saving opportunity for the County
Manager's Agency due to anticipated budget shortfalls.
Agenda Item No. 16E1
February 23,2010
Page 5 of 6
2. The County Attorney's Office may choose to opt-in to the program as a cost-
saving opportunity due to anticipated budget shortfalls.
3. Employees under contract with the Board of County Commissioners Agency
or CRA who meet the eligibility criteria may participate in this program offering.
4. This Program offering will only be available for a limited time frame,
specifically Wednesday, February 24, 2010 to Friday, April 9, 2010. To participate,
employees must meet the eligibility criteria in the period from February 24, 2010 through
December 31, 2010. Employees must confirm participation in writing within the 4S-day
election period with the Human Resources Department, regardless of the date within this
period when they become eligible. Once enrolled in the plan, an employee will have a
period of seven (7) calendar days in which they may revoke their choice or amend their
enrollment election. After the seven (7) day revocation period ends, the employee's notice
to separate from County employment will start.
5. Program notice letters and required documentation will be provided to eligible
employees on or before Wednesday, February 24,2010.
6. Eligible employees are those regular full-time and eligible regular part-time
employees who meet the eligibility criteria outlined by the Florida Retirement System
(FRS) for Pension Plan members, making them eligible to retire without penalty under the
FRS. An employee may be a member of either the Pension or Investment Plan to be
eligible, but is not required to be an FRS participant.
7. The benefit of this Program extends for up to three years. An eligible
employee may choose from three incentive options. The options include (1) County paid
medical and dental benefits for three years, (2) fifty percent of the cash equivalent of
medical and dental benefits for three years, or (3) a combination that will include medical
.
Agenda Item No. 16E1
February 23, 2010
Page 6 of 6
and dental insurance coverage for a period for less than three (3) years, together with a
partial cash payment for the remaining months of the three year agreement.
8. Eligible employees who elect to participate in the Program will be asked to
enter into an Agreement and Release with Collier County. The Agreement will include the
details of the Program and specifically identify and explain the benefit that the employee
selected under the Program. The Agreement will also include a Release as required by
the Age Discrimination in Employment Act (ADEA). This Release will place the employee
on notice of hislher rights under the ADEA and ask the employee to consent that the
Agreement and Release is entered into "knowingly and voluntarily."
9. The County Manager shall be authorized to sign the Agreement and Release
on behalf of Collier County.
10. This Resolution shall take effect immediately upon adoption.
PASSED AND DULY ADOPTED by the Board of County Commissioners of Collier
County, Florida, this
day of
,2010.
BOARD OF COUNTY COMMISSIONERS
COLLIER COUNTY, FLORIDA
By:
FRED W. COYLE, CHAIRMAN
ATTEST:
DWIGHT E. BROCK, CLERK
Deputy Clerk
Approved as to form and
1~~SuffjCienCy:
~een M. Greene
Assistant County Attorney