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Home My WebLink AboutAgenda - 06-15-2010- 7bORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: June 15, 2010 Action Agenda Item No. '7 b SUBJECT: Approval of Fiscal Year 2010 -11 Personnel Ordinance Changes DEPARTMENT: Human Resources ATTACHMENT(S): Attachment 1. Resolution Determining a Significant Financial Crisis Attachment 2. Current Article IV, Section 9.4 of the Orange County Personnel Ordinance and Proposed Article IV, Section 9.4 Supplemental Retirement [401(k) Plan] Employees Contribution PUBLIC HEARING: (Y /N) No INFORMATION CONTACT: Michael McGinnis, Human Resources Director, 245 -2552 Annette M. Moore, Staff Attorney 245 -2317 PURPOSE: To approve the Personnel Ordinance Change required in the FY 2010 -11 Budget. BACKGROUND: The County Manager's Recommended FY 2010 -11 Annual Operating Budget recommended no employer contribution to the 401(k) Plan and the use of voluntary furloughs as a cost savings measure. If adopted these recommendations require a Board resolution similar to the one approved last year, "Determining a Significant Financial Crisis Exists" that necessary cost savings measures are necessary to balance the County's Budget for FY 2010- 2011. An amendment to Article IV, Section 9.4 of the Orange County Personnel Ordinance is also necessary. Attachment 1 — Resolution Determining Significant Financial Crisis. This Resolution provides the reasons the Board temporarily discontinued the employer contribution to the 401(k) Plan and instituted the voluntary furloughs. The County Manager recommended the discontinuance of employer contributions to the 401(k) Plan and the institution of voluntary furlough as part of the recommended Budget. • Attachment 2 — Current and Proposed Amendment to Article IV, Section 9.4 Supplemental Retirement [401(k) Plan] Employer's Contribution. This continues the suspension to the employer's contribution to the 401(k) Plan. Employees are still able to make individual contributions to the 401(k) Plan. The North Carolina General Statute §153A -45 provides that in order for an ordinance to be adopted on its first reading, it "must receive the approval of all the members of the board of commissioners. If the ordinance is approved by a majority of those voting but not by all the members of the board... it shall be considered at the next regular meeting of the board." The Board then has 100 days after introduction of the ordinance to adopt the change to the ordinance. If the Board does not unanimously approve the above amendment to the Personnel Ordinance, the amendment will not go into effect on July 1, 2010, as this is the last regular board meeting prior to July 1, 2010. FINANCIAL IMPACT: Savings from the proposed personnel services reductions were included in the Manager's Recommended 2010 -11 Annual Operating Budget. A savings of $50,000 in savings is projected from extending the Voluntary Furlough program, and $500,000 in savings is projected from extending the suspension of the County contribution to the 401(k) plan for non - law enforcement employees. RECOMMENDATION(S): The Manager recommends the Board: 1. Adopt the "Resolution Determining a Significant Financial Crisis Exists Which Will Result in a Decrease of Revenue to the County and Temporary Cost Saving Measures are Necessary to Balance the County's Budget for the FY 2010 - 2011" and authorize the Chair to sign the Resolution; and 2. Adopt the amendment to Article IV, Section 9.4 of the Orange County Personnel Ordinance, Supplemental Retirement [401(k) Plan] Employer's Contribution effective July 1, 2010. RES- 00 10- 053 AU044-t ORANGE COUNTY BOARD OF COMMISSIONERS A Resolution Determining a Significant Financial Crisis Exists Which Will Result in a Decrease of Revenue to the County and Temporary Cost Saving Measures Are Necessary to Balance the County's Budget for FY 2010 -2011 WHEREAS, the Orange County Board of Commissioners finds that Orange County residents and businesses are suffering from the effects of a significant state and national financial crisis; and WHEREAS, the financial crisis has resulted in large reduction in revenues projected to be available to fund the County's budget for FY 2010 -2011; and WHEREAS, Orange County Financial Services has calculated the revenues available to the County for FY 2010 -2011 from the taxes paid by residents and businesses and determined expenditures for FY 2010 -2011 will exceed revenues unless additional actions are taken; and WHEREAS, the Orange County Board of County Commissioners is required to ensure that the County's budget for FY 2010- 2011 is balanced in a manner that carefully balances the rights of residents and businesses to government services and the interest of County employees who provide those services; and WHEREAS, the Orange County Manager has recommended to the Board of County Commissioners feasible cost saving alternatives to consolidating, reorganizing or abolishing programs or departmental units which could result in the loss of one (1) or more non - vacant permanent or provisional positions; and WHEREAS, the employee related temporary cost saving measures for FY 2010 -2011 recommended by the County Manager are: the suspension of the Supplemental Retirement [401(k) Plan] Employer Contribution provided in Article IV, Section 9.4 for non -law enforcement officer (LEO) employees; and the continuation of a Voluntary Furlough Plan, as provided in Article IV, Section 24.0; and WHEREAS, a furlough is unpaid leave, whether voluntary or involuntary, which does not require the employee to lose seniority or employer paid benefits and allows the employee to earn and retain all leave at the same rate, unless otherwise provided by the Board; and WHEREAS, the implementation of these cost savings measures will begin on July 1, 2010 and are necessary to balance the County's budget for FY 2010 -2011 and will end on June 30, 2011, unless the Board by resolution determines that continued cost savings are necessary to balance the budget; NOW, THEREFORE, BE IT RESOLVED, the Orange County Board of Commissioners has determined a significant financial crisis exists that will result in a decrease in revenue to the County and that temporary cost savings measures are necessary to balance the County's Budget for FY 2010 -2011 in a manner that balances the rights of residents and business to government services and the interest of County employees who provides those services; and BE IT RESOLVED, the Orange County Board of Commissioners does hereby approve and authorize the temporary cost saving measures for County employees provided in the County Manager's recommended FY 2010.2011 budget; and BE IT FURTHER RESOLVED, the Orange County Board of Commissioners does hereby adopt the attached amendment to the Orange County Personnel Ordinance to comply with these cost saving measurs. This the 150' day of June, 2010. Valerie P. Foushee, Chair Orange County Board of Commissioners ORD - 0010-051 AQC a Current Article IV, Section 9.4 of the Orange County Personnel Ordinance 9.4 Supplemental Retirement [401(k) Plan] Employer's Contribution Effective This Employer's Contribution to the 401(k) Plan, effective July 1, 2009, is 107/01/09 suspended until June 30, 2010. Proposed Amendment to Article IV, Section 9.4 of the Orange County Personnel Ordinance 9.4 Supplemental Retirement [401(k) Plan] Employer's Contribution This Employer's Contribution to the 401(k) Plan, effective July 1, 2010, is suspended until June 30, 2011.