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2011-35 RESOLUTION NO. 2011- 35 r A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, APPROVING A ONE-TIME OPTION TO SELL BACK A LIMITED AMOUNT OF ACCRUED VACATION OR PERSONAL LEAVE HOURS FOR THE EMPLOYEES OF THE CITY OF GRAND TERRACE WHEREAS, a Fiscal Sustainability Model was presented to the City Council at a regular Council meeting on May 24, 2011 identifying financial challenges of the City; and WHEREAS, one of the challenges identified was that the City lacks traditional reserve and replacement funds, which includes not having a reserve established for the future payout of accrued employee leaves, and WHEREAS, employee accrued leaves are an unfunded liability for the City; and WHEREAS, the City Council acknowledges that over the past four fiscal years, employee compensation has been impacted by various budget actions; and WHEREAS, the City Council has considered offering employees a one-time option to sell back vacation leave or personal leave in an effort to reduce the unfunded liability and to offer something positive for the employees, and WHEREAS, the City Manager held "Meet and Advise' meetings on November 14, 2011 with unrepresented City Hall Employees and on November 16, 2011 with unrepresented Child Care Employees to inform them of the possible optional leave sell back which would require Council approval; and WHEREAS, the aforementioned eligible employees were given a deadline of December 9, 2011 to exercise their option to sell back vacation and personal leave time, subject to the City Council approval of the program. NOW THEREFORE BE IT RESOLVED that the City Council of the City of Grand Terrace, State of California, hereby approves the following: SECTION 1: Approve a one-time option to sell back a limited amount of accrued vacation or personal leave hours. SECTION 2: An eligible employee may sell back a maximum of 40 hours of vacation or personal leave if doing so does not reduce his/her combined leave balance to less than two weeks (80 hours for full time employees). SECTION 3. The sell back will take place on December 22, 2011 for all eligible employees who exercised their option to participate in the aforementioned leave sell back program on or before December 9, 2011. RESOLUTION 2011- 35 Page 2 PASSED, APPROVED AND ADOPTED THIS 13th day of December, 2011. ATTEST: It `�J(A17yr City Clerk6f the City of Grandvrerrace Mayor of the City of Grand Terrace and and of the City Council thereo of the City Council thereof I TRACEY R. MARTINEZ, City Clerk of the City of Grand Terrace, California, do hereby certify that the foregoing resolution was introduced and adopted at a regular meeting of the City Council of the City of Grand Terrace held on the 13th day of December, 2011 by the following vote: AYES: Councilmember MCNaboe, Sandoval and Hays; Mayor Pro Tem Garcia and Mayor Stanckiewitz NOES: None ABSENT: None ABSTAIN: None Approved as to form: City Att ey City Clerh