LETTER OF AGREEMENT
BETWEEN THE COMMERCE CITY EMPLOYEES ASSOCIATION
AND THE CITY OF COMMERCE
RE: CHANGES IN COST SHARING FOR FULL-TIME EMPLOYEES AND SALARY INCREASE FOR PART-TIME EMPLOYEES WHEREAS, the City Council (“Council”) for the City of Commerce (“City”) 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 (“COVID-19 Pandemic Economic Emergency”); WHEREAS, on August 4, 2020, December 15, 2020 and July 21, 2021 the City of Commerce Employees Association (“CCEA”), representing both full-time and part-time employees units, and the City (collectively “the Parties”), entered into and executed Letter of Agreements regarding 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 (“December 15th LOA” or “July 21st LOA”); and WHEREAS, the CCEA and the City have met and conferred regarding a salary increase for active part-time employees as well as a decrease in the cost sharing percentage from full time employees towards the City’s required employer contribution to the Public Employees Retirement System (PERS) Retirement Benefit.
NOW THEREFORE, the Parties agree as follows:
Full Time Employees:
Effective the first payroll period date commencing after execution of this letter of agreement, cost sharing for all full-time employees towards the City’s required employer contribution to the Public Employees Retirement System (PERS) Retirement Benefit shall be three and one-half percent (3.5%) of compensation, which represents a reduction of seven percent (7%) of the current ten and one-half percent (10.5%) cost sharing contribution as agreed to in paragraph 4 of the July 21st LOA. These amounts represent sharing the cost of the City’s employer PERS contributions, and are not inclusive of statutory employee contributions.
Effective the first payroll period commencing on or after December 12, 2022, cost sharing for full-time employees shall be eliminated and will be reduced to zero percent (0%) of compensation, representing a further reduction of three and one-half percent (3.5%) as agreed to in section one of this letter of agreement. These amounts represent sharing the cost of the City’s employer PERS contributions, and are not inclusive of statutory employee contributions. This provision shall supersede conflicting provisions in Section 4 of the July 21st LOA.
Part-Time Employees:
Subsection e of Section 3, of the December 15, 2020 Letter of Agreement is hereby amended in its entirety to state as follows:
e) Effective the first payroll period date commencing after execution of this letter of agreement, Part-Time Employees in active status shall receive a salary increase of four percent (4%).
Subsections b, c, and d of Section 3 of the December 15th LOA will be deleted in their entirety.
Except as expressly provided in this Letter of Agreement, all other provisions of the December 15th LOA will remain in full force and effect, as amended by the Amendment to the December 15th LOA Regarding Part-Time Employees Reinstatement From Furlough, executed by the Parties on or about May 11, 2021.
This Letter of Agreement does not constitute a waiver of either parties’ rights under the Meyers-Milias-Brown Act or regarding negotiations for a successor Memorandum of Understanding (MOU).
The terms of this LOA are not precedent-setting and do not establish or contribute to any past practice.
IT IS SO AGREED.
FOR: CITY OF COMMERCE CITY OF COMMERCE EMPLOYEES ASSOCIATION ______________________ Date:____/__/____ ______________________ Date:____/__/___ Edgar Cisneros, City Manager Kevin Larsen, President