STAFF REPORT
HUMAN RESOURCES DEPARTMENT
DATE: January 20, 2026
TO: Honorable Mayor and City Council
FROM: Anely Williams, Human Resources Director
SUBJECT: RESOLUTION NO. 7671 AMENDING THE FISCAL YEAR 2025-26 GENERAL
FUND BUDGET, AUTHORIZING A SUPPLEMENTAL BUDGET
APPROPRIATION FOR CONFIDENTIAL EMPLOYMENT MATTERS IN THE AMOUNT OF $300,000, OFFSET BY A REDUCTION IN THE GENERAL FUND RESERVE; AND APPROVE TWO PURCHASE ORDERS WITH DEBRA L.
REILLY, APLC IN AN AMOUNT NOT TO EXCEED $60,000 TOTAL, ONE
PURCHASE ORDER WITH JL GROUP, LLC IN AN AMOUNT NOT TO EXCEED $55,000, AND ONE PURCHASE ORDER WITH LIEBERT CASSIDY
WHITMORE IN AN ADDITIONAL AMOUNT OF $125,000, FOR
PROFESSIONAL SERVICES RELATED TO CONFIDENTIAL EMPLOYMENT
MATTERS
CEQA: Not a Project
Recommendation: Adopt and Approve
SUMMARY
The Human Resources Department (“HR”) is responsible for employment and risk management services in support of the City’s operating departments. Such confidential employment matters include disability accommodation processes, leave management, conducting and coordinating confidential personnel investigations, and related employment matters. Many of HR’s core functions are unpredictable in nature, particularly confidential personnel investigations that often occur without advance notice or preparation. Nevertheless, the City has a duty to address all confidential employment matters.
In prior fiscal years, HR’s Operating Budget sufficiently covered the cost of such investigative and related processes. However, in Fiscal Year 2025-26, a significant number of unanticipated matters were initiated, and the existing HR Operating
Budget Appropriation for Confidential Employment Matters January 20, 2026
Budget is insufficient to pay for these required services. Accordingly, it is recommended that the City Council approve Resolution No. 7671 amending the Fiscal Year 2025-26 General Fund Budget, authorizing a supplemental budget appropriation for confidential employment matters in the amount of $300,000; and approve two Purchase Orders with Debra L. Reilly, APLC in an amount not to exceed $60,000 total, one Purchase Order with JL Group, LLC in an amount not to exceed $55,000, and one Purchase Order with Liebert Cassidy Whitmore in an additional amount of $125,000.
DISCUSSION
The Human Resources Department (“HR”) is responsible for administering highly sensitive, confidential, and legally mandated functions in support of the City’s operating departments. These responsibilities require adherence to federal and state employment laws, as well as the consistent application of City policies. Services provided by HR include managing confidential employment matters such as disability accommodations, interactive process compliance, leave management, conducting and coordinating confidential personnel investigations, and addressing other complex employment-related matters.
A significant portion of HR’s work is inherently unpredictable and frequently requires immediate and sustained attention. The nature of these responsibilities makes it particularly challenging to anticipate the volume, timing, and complexity of services provided. Notably, confidential personnel investigations can occur at any time and without advance notice or preparation, while simultaneously requiring prompt action to mitigate risk, ensure workplace safety, preserve confidentiality, and ensure compliance with applicable laws and policies. These investigation processes often necessitates the use of specialized resources, including outside investigators and legal consultation.
Despite the unpredictable nature of this work, the City has an obligation to respond to complaints and undertake confidential personnel investigations. In prior years, HR’s Operating Budget sufficiently covered the costs associated with confidential employment matters, including investigative services and related processes.
However, during the current fiscal year, an unanticipated increase in the number and complexity of confidential employment matters has exceeded historical norms. As a result, the existing HR Operating Budget is insufficient to pay for these required
Budget Appropriation for Confidential Employment Matters January 20, 2026
services. Additional funding is necessary to complete pending employment matters and ensure compliance with legal requirements through the end of Fiscal Year 2025-
26. Accordingly, it is recommended that the City Council approve Resolution No. 7671 amending the Fiscal Year 2025-26 General Fund Budget, authorizing a budget appropriation for confidential employment matters in the amount of $300,000; and approve two (2) Purchase Orders with Debra L. Reilly, APLC in an amount not to exceed $60,000 total, one (1) Purchase Order with JL Group, LLC in an amount not to exceed $55,000, and one (1) Purchase Order for Liebert Cassidy Whitmore in an additional amount of $125,000. The requested amounts would fund the unplanned work to date and accommodate other confidential employment matters that may arise during the remainder of the fiscal year.
ENVIRONMENTAL ANALYSIS
The proposed action does not constitute a project under the California Environmental Quality Act (“CEQA”), based on Section 15061(b)(3) of the CEQA Guidelines, as it can be seen with certainty that it will have no impact on the environment.
FISCAL IMPACT
The total cost of the unanticipated confidential employment matters and related processes is $300,000. This cost was not anticipated nor included in the Human Resources Department’s Fiscal Year 2025-26 Operating Budget. Therefore, a budget appropriation from the General Fund Reserves is necessary to complete these required processes.
RECOMMENDATION
It is recommended that the City Council determine that this action does not constitute a project under the California Environmental Quality Act (“CEQA”); and adopt Resolution No. 7671 amending the Fiscal Year 2025-26 General Fund Budget, authorizing a supplemental budget appropriation for confidential employment matters in the amount of $300,000, offset by a reduction in the General Fund Reserve; and approve two Purchase Orders with Debra L. Reilly, APLC in an amount
Budget Appropriation for Confidential Employment Matters January 20, 2026
not to exceed $60,000 total, one Purchase Order with JL Group, LLC in an amount not to exceed $55,000, and one Purchase Order with Liebert Cassidy Whitmore in an additional amount of $125,000, for professional services for confidential employment matters.
Attachment: Resolution No. 7671
1 RESOLUTION NO. 7671
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, AMENDING THE FISCAL YEAR 2025-26 GENERAL FUND
BUDGET, AUTHORIZING A SUPPLEMENTAL BUDGET APPROPRIATION
FOR CONFIDENTIAL EMPLOYMENT MATTERS IN THE AMOUNT OF
$300,000, OFFSET BY A REDUCTION IN THE GENERAL FUND RESERVE
WHEREAS, the Human Resources Department (“Department”) provides comprehensive human resources and risk management services in support of the City’s operating departments; and
WHEREAS, the nature of the Department’s functions are highly sensitive, confidential, frequently legally required, and carry significant fluctuation and unpredictability; and
WHEREAS, unanticipated confidential employment matters arose that were not previously included in the Department’s Fiscal Year 2025-26 Operating Budget; and
WHEREAS, a budget appropriation of $300,000 is necessary to provide funding for the Department’s functions this Fiscal Year; and
WHEREAS, the Administrative Services Director has projected that there are adequate reserves in the General Fund to fund the additional appropriation needed for these services.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, DOES FIND, DETERMINE AND RESOLVE AS FOLLOWS:
2 SECTION 1. The sum of $300,000 is hereby appropriated to the General Fund Operating Budget for the purposes of funding the costs of each confidential employment matter for the period of July 1, 2025, through June 30, 2026.
SECTION 2. The City Clerk shall certify to the adoption of this Resolution.
Passed, approved and adopted this 20th day of January, 2026.
______________________________
Mayor of the City of Arcadia
ATTEST:
__________________________
City Clerk
APPROVED AS TO FORM:
__________________________
Michael J. Maurer
City Attorney