I XR-A 110 L'
APPROVED BY
CITY MANAGER
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: OFFICE OF THE CITY MANAGER
BY: MARK SCOTT, INTERIM CITY MANAGER
SUBJECT: AMENDMENT TO RESOLUTION 21-8013 REGARDING SEVERANCE BENEFITS
FOR CERTAIN EMPLOYEES IN CLASSIFICATIONS DESIGNATED AS
EXECUTIVE MANAGEMENT, MIDDLE MANAGEMENT AND
CONFIDENTIAL/EXEMPT
CLASSIFICATIONS DESIGNATED AS EXECUTIVE MANAGEMENT, MIDDLE MANAGEMENT 4VID CONFIDENTIAL/EXEMPT.
Irl 1lj!!!1j
=In. 512T
I
iocai agencies fo repor-L ouT certain INTUFFrIall(MI DeWle UrIalligirly LHU UU111Pt:11baL1U11 U1 UerletlLb U1 their "executives". Under this law, legislative bodies for agencies must orally report a summary of the recommendation for changes in salaries or benefits before voting for the changes. The votes must be taken in the open session portion of the meeting.
This resolution will amend resolution 21-8013 by adding Section 17. Severance. Under this amendment the classifications of Chief of Police and Fire Chief shall be eligible to receive a severance payment equal to the value of six (6) months of salary and medical benefits.
Additionally, the classifications of Assistant City Manager, Director of Community Development, Deputy City Manager, Director of Public Works, Finance Director, Assistant to the City Manager,
AMENDMENT OF EXEC-MGMT, MID-MGMT, CONF/EXEMPT SALARY AND BENEFITS RESOLUTION APRIL 12, 2022
PAGE 2
Director • Human Resources, and Executive Director • the Columbia • Space Center shall be eligible to receive a severance payment equal to the value of three (3) months of salary • -• benefits.
Eligibity for severance pay shall be upon termination without cause. Severance shall not be required if the termination of the employee was the result of: 1) willful misconduct; 2) conviction of a crime involving moral turpitude; 3) consistent poor performance in meeting specific objectives; or 4) voluntary separation by the employee. This section shall apply to only those employees in both regular and acting appointments in the specified classifications who are terminated without cause from the City and who execute a waiver and release and discharge of all claims against the City, its officers, agents and employees.
FISCAL IMPACT
There would be no cost involved unless an eligible employee is discharged without cause.
Historically such provisions are rarely executed. If it is, cost for an employee affected by this resolution could range from $40,000 to $130,000, depending on the employee.
ATTACHMENT
Attachment A: Resolution
0 RESOLUTION OF • OF OF DOWNEY
AMENDING• • 80REGARDING SEVERANCE BENEFITS
FOR CERTAIN EMPLOYEES• DESIGNATED AS
EXECUTIVE MANAGEMENT, MIDDLE AND
• r
under• - law, Section 2704 of Downey Municipal••-
• Section 12 of - City of Downey •• -ntal Employee Relations Rulesand Regulations, Council- t. with the authorityto designate . . • : as being Executive Management, Middle Management, and Confidential/Exempt; and, WHEREAS, the City Council desires to provide competitive compensation and benefits to its employees; an•f
RESOLVENOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DOWNEY DOES HEREBY • •
SectionSECTION 1. Resolution No. 21-8013, shall be amended with the addition of the following The City shall pay eligible designated employees serving in classifications established in this section severance pay in an amount as specified upon termination without cause from the City. Severance pay shall not be required pursuant to this section if the termination of the employee of: i • conviction of • l i moral
turpitude; 3) consistent poor performance in meeting specific objectives; or 4) voluntary separation by the employee. The classifications of Chief of Police and Fire Chief shall receive a severance payment equal to the value of six (6) months of salary and medical benefits when separated • i .nce with this section.The classifications of Assistant• _ Director of Community Development, Deputy City Manager, Director of Public Works, Finance Director, Assistant to the City Manager, Director of Human Resources, and Executive Director of the Columbia Memorial Space Center shall receive a severance payment equal to the value of three (3) months of salary and medical benefits when separated in accordance with this section. All payments under this section shall be paid as a lump sum on the employees' final paycheck in accordance with the City established payroll schedule. This section shall apply to only those employees in both regular and acting appointments in the specified classifications who are terminated without cause from the City and who execute a waiver and release and discharge of all claims against the City, and its officers, agents and employees, the terms of which shall be in a form approved by the City Manager and City Attorney. However, an employee removed from an acting appointment in a specified classification who is returned to another classification to retain City employment shall not be entitled to severance pay in accordance •n
For purposes of calculation of severance, one month of salary shall be defined as 173.33 hours times the employee's base hourly rate of pay at the time of separation. Medical benefits shall be defined as the dollar amount contributed monthly to that employee at the time of separation.
SECTION 2. Resolution No. 21-8013, adopted March 23, 2021, is hereby amended w& the adoption of this Resolution.
SECTION 3. The City Clerk shall certify to the adoption of this Resolution and provide for the appropriate distribution thereof,
FI-11 1111*1
MARIA ALICIA DUARTE, CIVIC
City Clerk
I HEREBY CERTIFY that the foregoing Resolution was adopted by the City Council of the City of Downey at a regular meeting held on the 1 oth day of November, 2022, by the following vote, to wit:
AYES:
Council Membe
NOES:
Council Membe
ABSENT:
Council Membe
ABSTAIN.
Council Membel