The Leelanau County Road Commission wants to thin its ranks.
The Road Commission Tuesday approved an early retirement window for employees who are at least 55 years old and have a minimum of 15 years of service vested in the commission’s retirement plan.
The plan is not to fill the vacant positions.
The commission unanimously offered the early retirement program with a 60-day window that ends May 31. The commission also unanimously approved an early retirement request from assistant manager David Newman. As part of that approval, the commission agreed to buy one month of service for Newman to meet the 15-year minimum. His retirement is effective May 1.
Commission manager/superintendent Herb Cradduck said the assistant manager position is now eliminated, leaving himself, engineer James C. Johnson and Maple City garage foreman Robert Atkinson as the Road Commission’s management team.
“We asked Dave if he would be interested in taking early retirement and he indicated he would,” Cradduck said. Newman’s salary for the 2007 fiscal year is $46,919, plus benefits.
Cradduck said there are six employees who are eligible for the early retirement program. The average cost for an employee at the Road Commission is about $60,000.
If all six employees exercise the option, potential savings to the Road Commission is roughly $360,000.
Commission board chairman Lee A. Bowen said the actual savings would likely be closer to $300,000 if all six employees take the offer.
Cradduck said he talked with union workers at both garages after a story in the Enterprise announced the Road Commission was looking at all options for reducing costs. At its April 3 meeting, the commission reviewed figures presented by Cradduck and Clerk Joe Nedow show declining revenues and increasing costs since 2003. While the commission has several road improvement projects scheduled for this summer, it has curtailed the number it is looking at for next year. He said he hopes at least some workers will take advantage of the early retirement offer, but he doubts all six employees will exercise the option.
“We’re offering this, then we’re going to see who is interested in a voluntary lay off.
Then we’ll see what happens after that,” Cradduck said yesterday.
County road commissions around the state have already had to lay off workers for at least the summer. The Grand Traverse County Road Commission reportedly laid off 10 workers this week with plans to bring them back for snowplowing in the winter.
Commission member John Popa presented a list of cost-shaving ideas he would like to see the commission investigate. He suggested voluntary layoffs, switching to single-axle trucks for some snowplowing routes, reducing the number of snowplow routes, changing the cost-sharing formula for road improvement projects, and setting the thermostat to 78 degrees in the summer to reduce energy costs.
Popa also suggested reducing the workforce, keeping a minimum number on staff for improvement projects, then hiring temporary help for plowing. He also suggested using outside contractors to plow subdivisions and smaller developments and changing the summer work week.
Cradduck said changes to work hours would have to be agreed upon by the union workforce and that the Road Commission management is looking at all aspects of how to reduce costs.
The commission also opened bids for a front-end wheeled load, a tool carrier, a crew cab pick-up truck and one-ton dump truck. All bids will be reviewed by management and awarded in the best interest of the Road Commission.
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