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ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: June 15, 2010 <br />Action Agenda <br />Item No. '7 b <br />SUBJECT: Approval of Fiscal Year 2010 -11 Personnel Ordinance Changes <br />DEPARTMENT: Human Resources <br />ATTACHMENT(S): <br />Attachment 1. Resolution Determining a <br />Significant Financial Crisis <br />Attachment 2. Current Article IV, <br />Section 9.4 of the Orange County <br />Personnel Ordinance and Proposed <br />Article IV, Section 9.4 Supplemental <br />Retirement [401(k) Plan] Employees <br />Contribution <br />PUBLIC HEARING: (Y /N) No <br />INFORMATION CONTACT: <br />Michael McGinnis, Human Resources <br />Director, 245 -2552 <br />Annette M. Moore, Staff Attorney <br />245 -2317 <br />PURPOSE: To approve the Personnel Ordinance Change required in the FY 2010 -11 Budget. <br />BACKGROUND: The County Manager's Recommended FY 2010 -11 Annual Operating Budget <br />recommended no employer contribution to the 401(k) Plan and the use of voluntary furloughs <br />as a cost savings measure. If adopted these recommendations require a Board resolution <br />similar to the one approved last year, "Determining a Significant Financial Crisis Exists" that <br />necessary cost savings measures are necessary to balance the County's Budget for FY 2010- <br />2011. An amendment to Article IV, Section 9.4 of the Orange County Personnel Ordinance is <br />also necessary. <br />Attachment 1 — Resolution Determining Significant Financial Crisis. This <br />Resolution provides the reasons the Board temporarily discontinued the employer <br />contribution to the 401(k) Plan and instituted the voluntary furloughs. The County <br />Manager recommended the discontinuance of employer contributions to the <br />401(k) Plan and the institution of voluntary furlough as part of the recommended <br />Budget. <br />• Attachment 2 — Current and Proposed Amendment to Article IV, Section 9.4 <br />Supplemental Retirement [401(k) Plan] Employer's Contribution. This continues <br />the suspension to the employer's contribution to the 401(k) Plan. Employees are <br />still able to make individual contributions to the 401(k) Plan. <br />The North Carolina General Statute §153A -45 provides that in order for an ordinance to be <br />adopted on its first reading, it "must receive the approval of all the members of the board of <br />commissioners. If the ordinance is approved by a majority of those voting but not by all the <br />