RESOLUTION NO. ____
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMMERCE, CALIFORNIA, APPROVING CHANGES TO COMPENSATION AND FRINGE BENEFITS FOR EXECUTIVE MANAGEMENT EMPLOYEES OF THE CITY OF COMMERCE WHEREAS, the City Council passed a resolution on March 16, 2020 declaring a local state of emergency; and WHEREAS, the City Council passed a resolution on March 25, 2020 declaring an economic emergency related to the COVID-19 pandemic; and WHEREAS, on January 17, 2017, the City Council approved Resolution No. 17-09, providing for fringe benefits and related compensation for Executive Management Employees of the City of Commerce; and WHEREAS, on September 17, 2019, the City Council approved Resolution No. 19-119, providing for fringe benefits and related compensation for Executive Management Employees of the City of Commerce; and WHEREAS, on August 18, 2020, the City Council approved a resolution adjusting benefits and compensation of Executive Management, City Manager and Assistant City Manager Employees as a cost-saving measure in the City’s overall efforts to preserve its resources as a result of the financial impacts caused by the COVID-19 pandemic; and WHEREAS, fringe benefits and compensation as indicated in Resolution No. 17-09 and 19-119 remain unchanged, except as indicated by the passage of this Resolution; and WHEREAS, this Resolution proposes to make adjustments to the benefits and compensation of Executive Management Employees; and WHEREAS, this Resolution proposes to make adjustments to compensation of Executive Management Employees by reducing the cost sharing towards the City’s required employer contribution to the Public Employees Retirement System (PERS) Retirement Benefit by three and a half percent (3.5%) of the current seven percent (7%) cost sharing contribution as agreed in the actions in the approved resolutions of the August 18, 2020 Council Meeting. These amounts represent sharing the cost of the City’s employer PERS contributions and are not inclusive of statutory employee contributions; and WHEREAS, the City Council has been asked to consider and accept the City Manager’s and Assistant City Manager’s request to assess the same reduction of three and a half percent (3.5%) of their respective compensation each towards the City’s allocation to the Public Employees Retirement System (PERS) Retirement Benefit; and WHEREAS, this reduction of three and a half percent (3.5%) shall be made to the employer contribution rate. This cost sharing arrangement shall be made in accordance with California Government Code Section 20156(f). Contributions made by Full Time Executive Management employees shall be on a pre-tax basis to the extent allowed by law. The parties acknowledge that the City shall have no liability to any individual unit employee should any of these contributions not be allowed to be made on a pre-tax basis by an agency other than City of Commerce; and WHEREAS, additionally, the Executive Management employees (including the City Manager and Assistant City Manager) agreed to defer the 2020 Vacation Leave and Sick Leave Buyback programs to the fiscal budget 2021-2022 year. This deferral helped the City preserve cash during the pandemic/economic downturn; and WHEREAS, the fiscal impact for these adjustments will be an additional $37,441 for the 2021/22 fiscal year.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COMMERCE DOES HEREBY RESOLVE, DECLARE AND DETERMINE AS FOLLOWS:
Section 1. The City Council of the City of Commerce hereby finds and declares that the foregoing recitals are true and correct, and incorporates them herein as findings and as a substantive part of this Resolution.
Section 2. Effective January 10, 2022, Full Time Executive Management Employees of the City of Commerce reduction of three and a half percent (3.5%) of compensation towards the City’s allocation to the Public Employees Retirement System (PERS) Retirement Benefit is hereby approved.
Section 3. Effective January 10, 2022, the City Manager’s and Assistant City Manager’s reduction of three and half percent (3.5%) of their respective compensations each towards the City’s allocation to the Public Employees Retirement System (PERS) Retirement Benefit for the remainder of their respective agreements, is considered a written amendment to their agreements and is hereby approved.
Section 4. City Council acknowledges that this reduction of the three and a half percent (3.5%) rate is deducted from the additional seven percent (7%) contribution that was added to the classic employee contribution rate of seven percent (7%) and new member employee contribution rate of one-half of the total normal cost of the plan as determined by CalPERS as approved in the resolution approved on August 18, 2020.
Section 5. This reduction of three and a half percent (3.5%) shall be made to the employer contribution rate. This cost sharing arrangement shall be made in accordance with California Government Code Section 20156(f). Contributions made by Full Time Executive Management employees shall be on a pre-tax basis to the extent allowed by law.
Section 6. To the extent that the Full Time Executive Employees, as well as the City Manager and the Assistant City Manager, as covered by this Resolution, made the proposal to the City of Commerce to make these aforementioned adjustments, same was done with the acknowledgement that the City of Commerce shall have no liability to any individual unit employee should any of these contributions not be allowed to be made on a pre-tax basis by an agency other than City of Commerce.
Section 7. Executive Management employees (including the City Manager and Assistant City Manager) agreed to defer the 2020 Vacation Leave and Sick Leave Buyback programs to the fiscal budget 2021-2022 year.
Section 8. Authorize the Mayor to execute the Resolution for and on behalf of the City of Commerce.
Section 9. This Resolution shall take full force and effect immediately upon adoption by the City Council.
PASSED, APPROVED AND ADOPTED THIS 11th day of January, 2022.
Leonard Mendoza Mayor
ATTEST:
Lena Shumway City Clerk