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: Resolutions of the City Council of the City of Commerce, California Approving the Letter of Agreement between the City of Commerce and CCEA Related to Compensation, other terms related to part time employees and changes in Compensation for unrepresented Full Time Unrepresented and Executive Management Employees MEETING DATE: September 13, 2022
RECOMMENDATION:
The City Council will consider for approval and adoption, certain resolutions approving the attached Letter of Agreement between the City of Commerce and City of Commerce Employees Association related to compensation for represented full-time and part-time employees, other terms for part time employees and changes related to compensation for full time Unrepresented and Executive Management Employees.
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.
During May 2021 and December 2021, the City council passed a resolution 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 the process of reinstatement for part-time furlough employees.
On July 20, 2021, the City Council passed a resolution 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.
Also on July 20, 2021, the City Council 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%).
On January 11, 2022, the City Council approved 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.
Also on January 11, 2022, 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 in order to help the City preserve cash during the pandemic/economic downturn.
While economic forecasters predict an economic decline in the near future, the City is now recovering from this state of an Economic Emergency and the City and CCEA have met and conferred regarding a reduction in cost sharing for full time represented employees and a salary increase for active part-time employees.
The Commerce City Employees Association (CCEA) has conveyed that their membership has expressed approval of the contemplated Letter of Agreement and that they are authorized to sign it upon City Council approval. The Letter of Agreement is recommended for City Council’s approval based on that representation made by the CCEA and the current improved financial circumstances.
Full-time represented employees will receive a reduction in cost sharing costs towards the City’s required employer contribution to the Public Employees Retirement System (PERS) Retirement Benefit subject to the following terms and stipulations in the letter of agreement:
Effective the first payroll period commencing on or after the signing of the 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 reduced an additional three and one-half percent and as such the cost sharing for full-time employees will be eliminated in its entirety. 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 represented employees will receive a salary increase, subject to the following terms and stipulations in the letter of agreement:
Effective September 19, 2022, active Part-Time Employees shall receive a salary increase of four percent (4%).
Reinstatement of furloughed employees will be null and void. The City has provided adequate time and opportunities for many employees to transition to other roles within the City and encourages qualified furloughed employees to apply for future opportunities. However, at this time there is not a foreseeable path to their reinstatement with the City in their former roles.
Staff is also recommending that the stipulations stated in said Letter of Agreement between the City of Commerce Employees Association (CCEA), authorizing a reduction in cost sharing for full time represented employees, also apply to the full-time Unrepresented Employee Group and Executive Management (including the City Manager and Assistant Manager).
Full-time unrepresented employees will receive a reduction in cost sharing costs towards the City’s required employer contribution to the Public Employees Retirement System (PERS) Retirement Benefit subject to the following terms and stipulations:
Effective the first payroll period commencing on or after September 19, 2022, cost sharing for active unrepresented 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. 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 active unrepresented full-time employees shall be eliminated and will be reduced to zero percent (0%) of compensation. 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.
Executive Management, including the City Manager and Assistant Manager, will receive a reduction in cost sharing costs towards the City’s required employer contribution to the Public Employees Retirement System (PERS) Retirement Benefit subject to the following terms and stipulations:
Effective the first payroll period commencing on or after September 19, 2022, cost sharing for active Executive Management employees, including the Assistant City Manager and City Manager, towards the City’s required employer contribution to the Public Employees Retirement System (PERS) Retirement Benefit shall be reduced by three and one-half percent (3.5%) cost sharing contribution. These amounts represent sharing the cost of the City’s employer PERS contributions, and are not inclusive of statutory employee contributions.
Part-Time Reduction in Force:
Due to reprogramming of city services, part-time employees who remain on furlough status as of September 14, 2022 will not be reinstated from furlough and will be subject to a permanent layoff. Therefore, staff is recommending that the City Council consider approving a layoff of fifteen (15) furloughed part time employees due to a lack of work for those positions.
The City has consulted with the CCEA regarding the impacts of a reduction in force, layoff, of those part time employees who are on furlough status as of September 14, 2022 consistent with the City/CCEA Letter of Agreement.
The CCEA/AFSCME has tentatively agreed to the actions related to their represented groups. This item will be discussed with the City Council in closed session further. If changes are made related to this item that are agreeable to both parties, they may be read into the record and added to the Letter of Agreement, attached herein.
FISCAL IMPACT:
The total costs associated with the actions indicated in this agenda report and Letter of Agreement is delineated as follows:
Full-time Not to exceed $###,###
Part-time Not to exceed $ ##,###
Increase
Layoff
Executive Management Not to exceed $ ##,###
Total $###,###
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
Attachments
Draft Letter of Agreement and Related Resolutions (PENDING)