CITY OF COMMERCEAGENDA REPORTCITY OF COMMERCEAGENDA REPORT
CITY OF COMMERCE
AGENDA REPORT
CITY OF COMMERCE
AGENDA REPORT
TO: Honorable City Council
FROM: City Manager
SUBJECT: Adoption of a Resolution of the City Council of the City of Commerce, California, Approving Changes to Compensation for Full Time Unrepresented Executive Management MEETING DATE: January 11, 2022
RECOMMENDATION:
The City Council will consider for approval and adoption of a resolution related to changes to the compensation and fringe benefits package for full time unrepresented Executive Management Employees group.
BACKGROUND:
The City Council passed a resolution on March 16, 2020 declaring a local state of emergency and passed a resolution on March 25, 2020 declaring an economic emergency related to the COVID-19 pandemic.
The City Council passed a resolution on August 4, 2020 approving a letter of agreement between the City of Commerce and the City of Commerce Employees Association (CCEA), representing full-time and part-time employees units related to the impact of the COVID-19 pandemic on the City’s economic condition and loss of revenue.
The City Council passed a resolution on August 18, 2020 approving changes to compensation and benefits for Unrepresented Confidential employees and Executive Management employees as a result of the impact of the COVID-19 pandemic on the City’s economic condition and loss of revenue.
The City Council passed a resolution on December 15, 2020 approving a letter of agreement between the City of Commerce and the City of Commerce Employees Association (CCEA), representing full-time and part-time employees.
The Letter of Agreement approved on December 15, 2020 was in regards to the COVID-19 Pandemic Economic Emergency, which, among other matters, addressed economic adjustments necessitated by the COVID-19 Pandemic Economic Emergency for full-time and part-time employees.
The City Council passed a resolution on July 20, 2021 approving a letter of agreement between the City of Commerce and the City of Commerce Employees Association (CCEA), representing full-time and part-time employees related to a one-time lump sum off-salary-schedule payment for active full-time and part-time employees in appreciation of employees who worked Productive Hours within a certain time frame during the COVID-19 Pandemic Economic Emergency. The City Council also approved the same structure of a lump sum off-salary schedule payment for active unrepresented and Executive Management employees.
On July 20, 2021, the City Council additionally approved that effective the first payroll period commencing on or after January 1, 2022, cost sharing for all full-time represented and unrepresented employees (excluding Executive Management) towards the City’s required employer contribution to the Public Employees Retirement System (PERS) Retirement Benefit shall be reduced by three and a half percent (3.5%).
Staff is now recommending that effective January 10, 2022 a cost sharing reduction of three and a half percent (3.5%), similar to represented full-time employees, for Executive Management employees (including the City Manager and Assistant City Manager) towards the City’s required employer contribution to the Public Employees Retirement System (PERS) Retirement Benefit.
Additionally, 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 in order to help the City preserve cash during the pandemic/economic downturn.
FISCAL IMPACT:
The total costs associated with the actions indicated in this agenda report are $37,441 for the 2021/22 fiscal year. If approved, funding for this action would come from the City’s projected surplus for the 2021/22 fiscal year.
ALTERNATIVES:
The City Council can take the following action:
Approve staff recommendation
Revise staff recommendation
Provide staff with further direction
RELATIONSHIP TO STRATEGIC GOALS:
This agenda report relates to the 2016 City of Commerce Strategic Guiding Principle – City Organization, as follows: This item is related to a specific 2016 Strategic goal as follows:
The City of Commerce is an organization and workplace that encourages innovation, attracts and retains employees through a supportive working environment with competitive salary and benefits. The City will maintain a knowledgeable, skilled and empowered workforce that is committed to providing outstanding service to its residents, businesses, and visitors. Guiding Principle 2: Foster an environment that continuously seeks to improve service and organizational responsiveness to internal and external customers.
Respectfully submitted by: Edgar P. Cisneros, City Manager Prepared by: Ela M. Pappo, Director of Human Resources
Reviewed by: Vilko Domic, Assistant City Manager
Reviewed by: Josh Brooks, Acting Finance Director
Approved as to form: Noel Tapia, City Attorney