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HomeMy WebLinkAbout5.E.3. Resignation/Retirement of Custodian Bob SchmitC. S. CITY OF SHAKOPEE Memorandum TO: Mayor and City Council Marls McNeill, City Administrator FROM: Kris Wilson, Assistant City Administrator SUBJECT: Resignation / Retirement of Custodian Bob Schmit DATE: July 8, 2011 Introduction The Council is asked to accept the resignation of Bob Schmit, from his position as a custodian, effective July 29, 2011 and authorize payment of the offered voluntary retirement incentive. Background Over the past few months, the City has been evaluating the cost effectiveness of it custodial structure, which until recently was composed entirely of City employees. At May 17 meeting, the City Council authorized staff to offer a voluntary separation incentive to those full -time custodial employees that were eligible for retirement under PERA. The incentive package, consisting of one week of pay for every year of service and continued City payment of the employer share of the employee's medical, dental and life insurance through the remainder of the 2011 calendar year, was accepted by custodian Bob Schmit. Therefore, Bob, who began working for the City in April of 2004, has submitted a letter of resignation, effective July 29, 2011. He has also signed a separation agreement prepared by the city attorney's office. Budget Impact The cost of the incentive package can be paid for within the adopted 2010 operating budget, due to the cost savings that will be achieved by contracting with a private custodial firm rather than refilling the position with a new City employee. Requested Action The Council is asked to offer a motion to accept the resignation of Bob Schmit from his position as a custodian, effective July 29, 2011, and authorize payment of the voluntary retirement incentive.