The City Council approved a plan Monday to offer 38 city
employees early retirement, which could prevent some layoffs under
a plan to terminate 36 positions by July.
Those employees eligible for the retirement
– who make up 22 percent of the workforce – have until March 29
to inform city management whether they accept the offer. Their
retirements would take effect after June 30.
The City Council approved a plan Monday to offer 38 city employees early retirement, which could prevent some layoffs under a plan to terminate 36 positions by July.
Those employees eligible for the retirement – who make up 22 percent of the workforce – have until March 29 to inform city management whether they accept the offer. Their retirements would take effect after June 30.
City Manager Dale Shaddox did not release the names of people asked to retire early – because he wants to protect their privacy, he said. Though some of them are also on the layoff list, which includes employees from every department and several senior officials.
Two department head positions on the layoff list – Fire Chief Bill Garringer and Finance Director Barbara Mulholland – confirmed they are eligible for the early retirement.
Depending on how many employees accept the offer, Shaddox and Council members believe the number of layoffs could be trimmed.
Shaddox offered an example – that if 10 people retire early, it would save the city an estimated $630,000 over each of the first five years.
“Can you imagine if 20 people retire?” Councilwoman Pauline Valdivia pondered.
Hollister will go through the Public Agency Retirement System (PARS), which is separate from the program already in place for Hollister workers who resign at normal retirement age.
That state agency is the Public Employees Retirement System (PERS), and it also offers an early retirement program.
But employees’ benefits are better under the PARS setup, and at about the same cost to the city, Shaddox said. Other area governments that have used the PARS include Santa Cruz County, Pacific Grove, Fremont and Sunnyvale, according to Shaddox.
When city leaders discussed the layoff plan with employees before an approval Jan. 28, workers expressed “moderate interest” in the PARS plan – while having none in the PERS program, Shaddox said.
To retire early, workers must be at least 50 years old; maintain eligibility for eventual retirement under the PERS Agency; and also have at least five years under the state’s system.
“I think a lot of people are going to take advantage of it,” Councilman Robert Scattini said.
Now, many employees have to wait at the mercy of others’ decisions, as the next few months will determine precisely who stays and goes.
Aside from choices on early retirement, many workers given pink slips also have the option to use “bumping rights.” That policy allows those with seniority over others to accept demotions or positions of equal rank.
It is unclear how many employees will “bump” others from their jobs, and Shaddox has said he doesn’t expect to know all the specifics until March or April.
Furthermore, if certain employees accept early retirement, and nobody within the workforce can assume those roles, Shaddox said, “The city may find itself actually recruiting to fill positions.”
Whoever accepts the early retirement must submit a letter of resignation by the end of the enrollment period, or March 29.
In other business:
– The Council held a joint meeting with the Parks and Recreation Commission. Shaddox had proposed the Council meet with all of its commissions at some point early on this year.
The two boards mostly discussed budget issues for the coming year, along with the layoff plan that cuts two full-time positions from the Recreation Division. And Council members thanked the commissioners for their efforts.
Commissioners emphasized avoiding drops in recreation services, and thus the quality of life in Hollister. Commissioner Adam Breen requested to especially try and maintain youth activities.
“If they don’t play, they’re likely on the streets,” he said.
– Mulholland presented a mid-year budget review. As of Dec. 31, she said, the city was in a “surprisingly positive situation.”
Expenses are slightly lower than projected, and revenues are holding the line.
