CITY COUNCIL OF MONTEREY PARK
THE CITY COUNCIL ACTING ON BEHALF OF THE SUCCESSOR AGENCY OF THE FORMER
REDEVELOPMENT AGENCY, THE HOUSING AUTHORITY, THE MONTEREY PARK FINANCING
AUTHORITY AND THE MONTEREY PARK GEOLOGIC HAZARD ABATEMENT DISTRICT AGENDA
REGULAR CITY COUNCIL MEETING
MONTEREY PARK CITY HALL COUNCIL CHAMBERS
320 W. NEWMARK AVENUE, MONTEREY PARK, CA 91754
Wednesday
June 15, 2022
6:30 p.m.
GENERAL INFORMATION
Documents related to an Agenda item are available to the public in the City Clerk’s Office located at 320 West Newmark Avenue, Monterey Park, CA 91754, during normal business hours and the City’s website at http://www.montereypark.ca.gov/AgendaCenter/City-Council-17.
The public may watch the meeting live on the city’s cable channel MPKTV (AT&T U -verse, channel 99 or Charter Communications, channel 182) or by visiting the city’s website at http://www.montereypark.ca.gov/133/City-Council-Meeting-Videos.
PUBLIC PARTICIPATION
You may speak up to 5 minutes on Agenda item. You may combine up to 2 minutes of time with another person’s speaking. No person may speak more than a total of 10 minutes. The Mayor and City Council may change the amount of time allowed for speakers. Written Communication will be accepted up to 24 hours before the meeting via email to [email protected].
Per the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please call City Hall at (626) 307-1359 for reasonable accommodation at least 24 hours before a meeting.
Council Chambers are wheelchair accessible.
CALL TO ORDER Mayor
FLAG SALUTE The Monterey Park Police Explorers
ROLL CALL Peter Chan, Hans Liang, Henry Lo, Yvonne Yiu
AGENDA ADDITIONS, DELETIONS, CHANGES AND ADOPTIONS
MISSION STATEMENT
The mission of the City of Monterey Park is to provide excellent services to enhance the quality of life for our entire community.
Monterey Park City Council Agenda, June 15, 2022 - Page 2 PUBLIC COMMUNICATIONS:
W
hile all comments are welcome, the Brown Act does not allow the City Council to take action on any item not on the agenda. The Council may briefly respond to comments after Public Communications is closed. Persons may, in addition to any other matter within the City Council's subject-matter jurisdiction, comment on Agenda Items at this time. If you provide public comment on a specific Agenda item at this time, however, you cannot later provide comments at the time the Agenda Item is considered.
STAFF COMMUNICATIONS:
• Recreation and Community Services Department
• Fire Department
[1.] PRESENTATION – NONE.
[2.] OLD BUSINESS – NONE.
[3.] CONSENT CALENDAR ITEM NOS. 3A-3K
3-A. MONTHLY INVESTMENT REPORT – MAY 2022
It is recommended that the City Council consider:
(1) Receiving and filing the monthly investment report; and (2) Taking such additional, related, action that may be desirable. 3 -B. RECOMMENDATIONS FOR ADOPTION OF FISCAL YEAR 2022-23 ANNUAL BUDGET It is recommended that the City Council consider:
(1) Adopting by Resolution the City’s and Successor Agency’s Fiscal Year 2022-2023 Annual Budget as presented on May 25, 2022, City Manager’s recommended budget incorporated with the Council’s directions;
(2) Adopting a Resolution amending the City’s Administrative Code; and (3) Taking such additional, related, action that may be desirable. 3 -C. PROFESSIONAL SERVICES AGREEMENT WITH ADMINSURE, INC. TO PROVIDE THIRD
PARTY ADMINISTRATION SERVICES FOR THE
CITY’S WORKERS’ COMPENSATION
CLAIMS PROGRAM
It is recommended that the City Council consider:
(1) Authorizing the City Manager to execute a standard professional services agreement with Adminsure, Inc. in a form approved by the City Attorney, to provide Third Party Administration services for the City’s Workers’ Compensation program; or (2) Taking such additional, related, action that may be desirable.
Monterey Park City Council Agenda, June 15, 2022 - Page 3 3-D. PR OFESSIONAL SERVICES AGREEMENT WITH RALPH ANDERSEN & ASSOCIATES TO
CONDUCT A CITY-WIDE CLASSIFICATION AND COMPENSATION STUDY It is recommended that the City Council consider:
(1) Authorizing the City Manager to execute a standard professional services agreement with Ralph Andersen & Associates in a form approved by the City Attorney, to conduct a City- wide Classification and Compensation Study; or
(2) Taking such additional, related, action that may be desirable. 3-E. RESOLUTION APPROVING THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY AND THE MONTEREY PARK PROFESSIONAL CHIEF OFFICERS’ ASSOCIATION FOR THE TERM OF JULY 1, 2022 TO JUNE 30, 2023
It is recommended that the City Council consider:
(1) Adopting a Resolution approving a Memorandum of Understanding (“MOU”) between the City of Monterey Park and the Monterey Park Professional Chief Officers’ Association (“MPPCOA”). The MPPCOA represents the battalion chiefs in the Monterey Park Fire Department;
(2) Authorizing budget appropriation of approximately $24,626 from the General Fund and $13,500 from the American Rescue Plan Act (ARPA) Funds for the 2022-2023 fiscal year; and
(3) Taking such additional, related, action that may be desirable. 3 -F. RESOLUTION DECLARING AN EMPLOYMENT EMERGENCY FOR THE CITY OF
MONTEREY PARK
It is recommended that the City Council consider:
(1) Adopting a Resolution declaring an employment emergency for the City of Monterey Park and authorizing the City Manager to take all practical actions needed to implement the efficient recruitment and retention of persons for employment; and (2) Taking such additional, related, action that may be desirable. 3 -G. 2021-22 STREET REHABILITATION AT VARIOUS LOCATIONS PROJECT – AWARD OF
CONTRACT
It is recommended that the City Council consider:
(1) Authorizing the City Manager to execute a public works contract, in a form approved by the City Attorney, with All American Asphalt of Corona, CA in the contract amount of $7,294,219 for the 2021-22 Street Rehabilitation at Various Locations Project; (2) Authorizing the Director of Public Works to approve change orders and contingency up to $729,422, or 10% of the contract amount for a total project cost of $8,023,641; and (3) Taking such additional, related, action that may be desirable.
CEQA (California Environmental Quality Act):
Since the proposed work is a minor alteration to an existing public facility, this project is Class 1 Categorically Exempt pursuant to the California Environmental Quality Act (CEQA).
Monterey Park City Council Agenda, June 15, 2022 - Page 4
3-H. 2022 CATCH BASIN RETROFIT DEVICE INSTALLATION – AWARD OF CONTRACT It is recommended that the City Council consider:
(1) Authorizing the City Manager to execute a public works contract, in a form approved by the City Attorney, with United Storm Water Inc. of Industry, CA in the contract amount of $99,450 for the 2022 Catch Basin Retrofit Device Installation; (2) Authorizing the Director of Public Works to approve change orders and contingency up to $9,945, or 10% of the contract amount;
(3) Taking such additional, related, action that may be desirable.
CEQA (California Environmental Quality Act):
Since the proposed work is a minor alteration to an existing public facility, this project is Class 1 Categorically Exempt pursuant to the California Environmental Quality Act (CEQA).
3-I. 2022 SLURRY SEAL AT VARIOUS LOCATIONS – AWARD OF CONTRACT It is recommended that the City Council consider:
(1) Authorizing the City Manager to execute a public works contract, in a form approved by the City Attorney, with Onyx Paving Company Inc. of Anaheim, CA in the contract amount of $848,000 for the 2022 Slurry Seal At Various Locations; (2) Authorizing the Director of Public Works to approve change orders and contingency up to $127,200, or 15% of the contract amount; and
(3) Taking such additional, related, action that may be desirable.
CEQA (California Environmental Quality Act):
Since the proposed work is a minor alteration to an existing public facility, this project is Class 1 Categorically Exempt pursuant to the California Environmental Quality Act (CEQA).
3-J. PREFERENTIAL PARKING DISTRICT: VANCOUVER AVENUE
It is recommended that the City Council consider:
(1) Adopting a Resolution amending Resolution Nos. 10931, 11634 and 11744 to include Vancouver Avenue from Avenida Cesar Chavez to Dorner Drive among the preferential parking districts; and
(2) Taking such additional, related, action that may be desirable.
CEQA (California Environmental Quality Act):
The proposed action is exempt from the requirements of the California Environmental Quality Act (Pub. Res. Code §§ 21000, et seq.: “CEQA”) and CEQA Guidelines (Cal. Code Regs. Title 14, §§ 15000, et, seq.) in accordance with CEQA Guidelines § 15305 (Class 5 – Minor Alterations in Land Use Limitations). The project involves a negligible expansion of use; there is only a minor change in the operation of an existing use. The project would not result in significant effects related to traffic, noise, air quality, or water quality and it can be adequately served by all required utilities and public services
Monterey Park City Council Agenda, June 15, 2022 - Page 5
3-K. LOCAL ROADWAY SAFETY PLAN (LRSP)
It is recommended that the City Council consider:
(1) Accepting grant funding in the amount of $51,000 from the California Department of Transportation for the Monterey Park Local Roadway Safety Plan (LRSP) Project; (2) Authorizing the City’s Management Services Department to appropriate $51,000 in grant funding and $5,667 in matching funds from the General Fund to the FY22 -23 budget for this project; and
(3) Taking such additional, related, action that may be desirable.
[4.] PUBLIC HEARING - None.
[5.] NEW BUSINESS – None.
[6.] CITY COMMUNICATIONS (CITY COUNCIL)
[7.] FUTURE AGENDA ITEMS
[8.] CLOSED SESSION (IF REQUIRED; CITY ATTORNEY TO ANNOUNCE)
ADJOURN
City Council Staff Report
DATE:
AGENDA ITEM NO:
June 15, 2022
TO: The Honorable Mayor and City Council
FROM: Joseph Leon, City Treasurer
SUBJECT: Monthly Investment Report – May 2022
RECOMMENDATION:
It is rec
ommended that the City Council consider:
1. Receiving and filing the monthly investment report; and
2. Taking such additional, related, action that may be desirable.
EXECUTIVE SUMMARY:
As of May 31, 2022 invested funds for the City of Monterey Park is $85,049,444.38.
BACKGROUND:
In accordanc
e with the City’s Investment Policy, a monthly investment report is presented to the City Council showing the types of investments, dates of maturities, amounts of deposits, rates of interest, and the current market values for securities with maturity more than 12 months. The attached monthly investment report includes a summary investment report for the LA County Pooled Investment Fund, which displays the composition by type for the entire pooled investment fund.
Respectfully submitted by: Prepared by:
Joseph Leon
City Treasurer
Martha Garcia
Director of Management Services
Approved by:
Ron Bow
City Manager
Consent Calendar - 3A
ATTACHMENT:
1. Monthly Investment Report
Staff Report
June 15, 2022
Attachment 1
Monthly Investment Report
INVESTMENTS PORTFOLIO PROFILE:
TOTAL BALANCE AT 5/31/2022 85,049,444.38$
INVESTMENT COMPOSITION
(1) LA COUNTY POOLED INVESTMENT FUND ON DEMAND 0.800% 37,815,389.78$ (See Schedule A for LA County Pool Composition)
(2) LOCAL AGENCY INVESTMENT FUND ON DEMAND 0.510% 40,859,054.60$ Purchase Maturity Interest
(3) CERTIFICATES OF DEPOSIT Date Date Rate
1 PREFERRED BANK 09/03/21 09/03/22 0.51% 100,000
2 PREFERRED BANK 09/08/21 09/08/22 0.51% 150,000
3 SALLIE MAE BANK 08/11/21 08/12/24 0.70% 245,000
4 GOLDMAN SACHS BANK 08/11/21 08/12/24 0.60% 245,000
5 TOYOTA FINANCIAL SAVINGS BANK 09/16/21 09/16/24 0.65% 245,000 6 BMW BANK NORTH AMERICA 09/17/21 09/17/24 0.65% 245,000 7 SYNCHRONY BANK 09/17/21 09/17/24 0.65% 245,000
8 UBS BANK USA 09/22/21 09/23/24 0.65% 245,000
9 STATE BANK OF INDIA 10/18/21 10/18/24 0.70% 245,000
10 LIVE OAK BANKING CO. 01/14/22 01/16/24 0.70% 245,000 11 GREENSTATE CREDIT UNION 01/14/22 01/16/24 0.70% 245,000 12 BEAL BANK USA 01/19/22 01/17/24 0.70% 245,000
13 MEDALLION BANK UTAH 01/28/22 01/28/25 1.25% 245,000 14 PENTAGON FEDERAL UNION 01/31/22 01/31/25 1.25% 245,000 15 BEAL BANK 02/02/22 01/29/25 1.15% 245,000
16 AMERICAN EXPRESS NATL BANK 03/09/22 03/11/24 1.60% 245,000 17 BARCLAYS BANK DELAWARE 03/09/22 03/11/24 1.55% 245,000 18 CAPITAL ONE BANK USA 03/16/22 03/17/25 1.80% 245,000 19 VALLIANCE BANK 03/18/22 03/18/25 1.40% 245,000
20 STATE BANK OF TEXAS 03/25/22 03/25/25 1.45% 245,000 21 FIRST FED SAVINGS & LOAN 03/30/22 03/31/25 2.00% 245,000 22 LAFAYETTE FEDERAL CREDIT UNION 03/30/22 03/31/25 2.20% 245,000 23 ALLY BANK 03/31/22 03/28/24 1.95% 245,000
24 COMENITY CAPITAL BANK 04/14/22 04/14/25 2.55% 245,000 25 AMERICU CREDIT UNION 04/21/22 04/21/25 2.30% 245,000 26 BALBOA THRIFT & LOAN 04/29/22 04/29/25 2.00% 245,000 27 CONNEXUS CREDIT UNION 05/26/22 05/28/24 2.65% 245,000 Total CDs (27) 1.290% 6,375,000.00$
OTHER INFORMATION:
BANK BALANCE: (1)
$ 4,757,662.85
AVERAGE MATURITY DAYS 62
AVERAGE INTEREST RATE FOR THE MONTH 0.700%
THE CITY'S INVESTMENT HAS SUFFICIENT LIQUIDITY TO MEET THE CITY'S EXPENDITURE REQUIREMENTS FOR THE NEXT 180 DAYS. THE 180-DAY LIQUIDITY DISCLOSURE IS REQUIRED PER GOVERNMENT CODE 53646.
INTEREST EARNINGS FOR 3RD QUARTER 2021-2022 64,222.00$
THERE HAVE BEEN NO VARIANCES TO THE INVESTMENT POLICY.
(1) Bank balance is maintained to cover outstanding warrants, payroll checks and on-going operating costs.
CITY OF MONTEREY PARK
INVESTMENT REPORT
MAY 31, 2022
Pooled Specific
Surplus Purpose
PORTFOLIO PROFILE Investments Investments
Inventory Balance at 04/30/22
At Cost 48,453,943,573$ 156,653,140$
At Market 46,636,235,466$ 141,956,803$
Repurchase Agreements -$ -$ Reverse Repurchase Agreements -$ -$ Composition by Security Type:
Certificates of Deposit 3.93% 0.00%
United States Government
and Agency Obligations 69.50% 72.29%
Bankers Acceptances 0.00% 0.00%
Commercial Paper 26.49% 0.00%
Municipal Obligations 0.06% 1.82%
Corporate and Deposit Notes 0.02% 0.00%
Repurchase Agreements 0.00% 0.00%
Asset-Backed 0.00% 0.00%
Other 0.00% 25.89%
1-60 days 38.63% 0.00%
61 days-1 year 24.61% 25.89%
Over 1 year 36.76% 74.11%
Weighted Average Days to Maturity 906
POOLED SURPLUS AND SPECIFIC PURPOSE INVESTMENTS
AS OF APRIL 30, 2022
SCHEDULE A
City Council Staff Report
DATE: June 15, 2022
AGENDA ITEM NO:
TO: The Honorable Mayor and City Council
FROM: Martha Garcia, Director of Management Services
SUBJECT: Recommendations for Adoption of Fiscal Year 2022-23 Annual Budget RECOMMENDATION:
It is recommended that the City Council consider:
1. Adopting by Resolution the City’s and Successor Agency’s Fiscal Year 2022-2023 Annual Budget as presented on May 25, 2022, City Manager’s recommended budget incorporated with the Council’s directions;
2. Adopting a Resolution amending the City’s Administrative Code; and
3. Taking such additional, related, action that may be desirable.
EXECUTIVE SUMMARY:
The City Council conducted a public budget workshop on May 25, 2022, regarding the City’s current finances, projected revenues, and financial obligations. The budget for FY 2022-2023 presents a spending plan that anticipates $ 128.2 million in estimated operating revenues and transfers-in from all funds combined and $ 151.6 million in operating, and capital improvements expenditures and transfers-out. Financial matters, including staffing realignment and changes, mitigation strategies for retiree medical unfunded liabilities, economic development projects, and goals and objectives associated with the City budget, were presented and discussed at the workshop.
BACKGROUND:
On May 25, 2022, City Council conducted a public budget workshop were FY 2022-23 estimated revenues and expenditures presented were $127.1 million and $149.2 million, respectively. Additionally, City staff have presented to City Council the addition of two capital improvement projects (CIPs) to be included in the FY2022-2023 Budget:
• On May 18, 2022, staff presented to Council a CIP for the school and crosswalk safety enhancement project to be funded with Active Transportation Program (ATP) Cycle 4 grant revenue at $1.2 million.
• On June 1, 2022, staff presented to Council a CIP for a street maintenance project to be funded with Road Maintenance and Rehabilitation (SB1) funds at $1.3 million.
Therefore, the City’s FY 2022-2023 Operating, Debt and Capital Budget total is $151.6 million of which $50.5 million is in the General Fund , $ 25.9 million is for capital Consent Calendar - 3B
Staff Report
June 15, 2022
improvements and $2.3 is for the Successor Agency enforceable obligations and administration costs. A careful and methodical approach was taken in preparing the budget consistent with City Council’s practice to exercise fiscal prudence with funding requests and the preservation of the General Fund reserves. Departmental budget requests were scrutinized considering essential operational needs and limiting the ongoing demand on the City’s finances. This operating budget takes the stance of status quo with escalations only where the cost-of-service delivery has increased.
FISCAL IMPACT:
The FY 2022-2023 citywide budget is estimated to be $151.6 million, with a General Fund Budget of $50.5 million (net of transfers).
Respectfully submitted by:
Martha Garcia
Director of Management Services
Approved by: Reviewed by:
Ron Bow
City Manager
Karl H. Berger
City Attorney
ATTACHMENT:
1. Budget Adoption Resolution
2. Administrative Code Resolution
Staff Report
June 15, 2022
ATTACHMENT1
Budget Adoption Resolution
RESOLUTION NO.
A RESOLUTION ADOPTING THE FISCAL YEAR 2022-2023 FINAL
OPERATING, DEBT AND CAPITAL BUDGET FOR THE CITY OF
MONTEREY PARK AND THE SUCCESSOR AGENCY TO THE MONTEREY
PARK REDEVELOPMENT AGENCY
The City Council for the City of Monterey Park and the City Council acting on behalf of the Successor Agency (collectively referred to, for convenience, as the “City”) does resolve as follows:
SECTION 1: FINDINGS. The City Council finds and declares as follows:
A. The City Council reviewed the proposed final Operatin g and Debt Budget (“Budget”) for the City and Capital Improvement Plan (“CIP”) for fiscal year 2022-2023;
B. The Budget and CIP are based upon appropriate estimates and financial planning for the City’s operations, debt and capital improvements; C. The City Council conducted public study sessions on May 25, 2022; D. The City Council is fully informed regarding the City’s current finances, projected revenue, and financial obligations; and
E. It is in the public interest for the City Council to adopt the Budget and CIP as proposed by the City Manager.
SECTION 2: Adoption. The Budget and the Capital Improvement Projects as incorporated by reference to this Resolution are approved and adopted subject only to the authorizations set forth below. Such approval and adoption includes, without limitation, the Position Control Listing of Authorized Positions, Classification and Compensation Plans set forth in the Budget which recognizes new classifications and removes unused classifications.
SECTION 3: Appropriations Limit.
A. Article XIIIB of the California Constitution requires the City to set its Appropriations Limit on an annual basis;
B. The City’s Appropriations Limit may be adjusted annually based upon inflation and population growth.
C. The City Council may choose the method of calculating adjustments to the City’s Appropriations Limit on an annual basis. For inflation, pursuant to Article XIIIB, § 8(e)(2), adjustments to the Appropriations Limit may be calculated using either the percentage change in per capita personal income from the preceding year or the percentage change in the local
Resolution No.
June 15, 2022
assessment roll from the preceding year because of local nonresidential new construction. For population growth, pursuant to Government Code § 7901(b), the City may either use the percentage growth either in its jurisdiction or from the surrounding county.
D. Pursuant to Article XIIIB of the California Constitution, and those Government Code sections adopted pursuant to Article XIIIB, § 8(f), the City Council chooses to adjust the City’s Appropriations Limit by calculating inflation using the California per capita personal income growth and calculating population growth by using the percentage change in population in Los Angeles County.
E. As a result of the adjustments made to the City’s Appropriations Limit, the City Council sets the Appropriations Limit for fiscal year 2022-2023 at $105.6 million.
SECTION 4: Budget Appropriations. Based upon the Budget, the total General Fund operating budget, including transfers, is $50.5 million. The Overall City Budget is $151.6 million including Capital Improvement Projects. The City Manager, or designee, is authorized to implement the appropriations for City Departments.
SECTION 5: CIP Appropriations. Based upon the CIP, a total of $25.9 million is appropriated for capital improvement projects for fiscal year 2022-2023. The City Manager, or designee, is authorized to implement the CIP.
SECTION 6: Reappropriation. The City Manager, or designee, is authorized to reappropriate any unused appropriations for capital projects, special projects, and grant programs at the close of fiscal year 2022-2023 for the Budget and CIP.
SECTION 7: Fund Operating Reserves. The City Manager, or designee, may appropriate any remaining revenues at the close of fiscal year 2022-2023 into the applicable Fund operating reserve per Governmental Accounting Standards Board (GASB) Statement No. 54.
SECTION 8: Budget Adjustments. The Budget may be subsequently adjusted as follows:
A. By majority vote of the City Council;
B. By the City Manager, or designee, for all appropriation transfers between programs and sections within a City department and between appropriation units (e.g., salaries and benefits, services and supplies, and capital outlay) within programs;
C. Objects code expenditures within appropriation units in a program are not
Resolution No.
June 15, 2022
restricted so long as funding is available in the appropriation unit as a whole.
SECTION 9: Contracting Authority.
A. Pursuant to Monterey Park Municipal Code (“MPMC”) Chapter 3.20, t he
City Manager, or designee, is authorized to bid and award contracts for the equipment, supplies, and services approved in the Budget.
B. Pursuant to MPMC § 3.90.050(c), the City Manager or designee, is authorized to execute all contracts awarded for equipment, supplies, and services approved in the Budget.
C. For all other services, equipment, and supplies, the City Manager or designee, is authorized to execute contracts in accordance with the MPMC.
SECTION 10: Electronic Signatures. This Resolution may be executed with electronic signatures in accordance with Government Code §16.5. Such electronic signatures will be treated in all respects as having the same effect as an original signature.
SECTION 11: Recordation. The Mayor, or presiding officer, is authorized to sign this Resolution signifying its adoption by the City Council of the City of Monterey Park and the City Clerk, or her duly appointed deputy, may attest thereto.
SECTION 12: Effective Date. This Resolution will become effective immediately upon adoption and will remain effective unless repealed or superseded.
PASSED AND ADOPTED this 15th day of June 2022.
____________________________
Henry Lo, Mayor
ATTEST:
____________________________
Vincent D. Chang, City Clerk
Resolution No.
June 15, 2022
APPROVED AS TO FORM:
____________________________
Karl H. Berger, City Attorney
Staff Report
June 15, 2022
ATTACHMENT 1
Administrative Code Resolution
RESOLUTION NO. __
A RESOLUTION AMENDING THE PREVIOUSLY ADOPTED MONTEREY
PARK ADMINISTRATIVE CODE ESTABLISHING CITY DEPARTMENTS,
IDENTIFYING DEPARTMENT DIRECTORS, AND IMPLEMENTING
DEPARTMENT RESPONSIBILITIES.
The Council of the City of Monterey Park does resolve as follows:
SECTION 1: Purpose. This Resolution is adopted pursuant to Section 5 of Resolution No. 12200 (adopted September 16, 2020) to reflect changes made to the City’s administration implemented by the City Manager since 2020. Resolution No. 12200, as amended by Resolution No. 12209 (adopted November 4, 2020), constitutes the “Monterey Park Administrative Code.”
SECTION 2: Incorporation of Previous Resolutions. Unless specifically provided in this Resolution, the definitions, construction, delegation of authority, and authority to make administrative changes reflected in the Monterey Park Administrative Code are incorporated by reference into this Resolution with out restatement.
SECTION 3: Organization and Operation. In addition to any powers delegated by applicable law including the MPMC, the City Manager is the City officer responsible for directing and supervising the administration of all departments, offices and agencies of the City, and is responsible for the general overall administration of City government. This office is also responsible for coordinating intergovernmental relations and promoting community relations and economic vitality. Unless the City Manager subsequently transfers supervisorial authority to a different Department, the City Manager will directly supervise the following divisions:
A. City Clerk. While the City Clerk is an elected official, the City employees within the City Clerk’s office are supervised by the City Manager, or designee, on a day-to-day basis.
B. Economic Development Division. The City Manager, or
designee, directly supervises:
1. Economic Development;
2. CDBG Administration;
3. HOME housing program;
4. Affordable housing program; and
5. Business improvement area.
Resolution Report
June 15, 2022
SECTION 4: Management Services Department.
A. Organization. The Management Services Department is
established under the direction and administration of the Management Services Director. These areas are:
1. Finance;
2. Information Technology;
3. Revenue Collection;
4. Central Support Services; and
5. Community Housing Assistance.
B. Establishment of Funds and Accounts. The following City funds are established:
1. General Fund - The General Fund is established as a medium of control of and accounting for municipal activities other than activities authorized or contemplated by special funds or other governmental funds. All revenues and receipts which are not by law or otherwise pledged or encumbered for special
purposes will be credited to the General Fund.
2. Special Revenue Funds - Special Revenue Funds will be established to account for revenues designated for particular purposes under the governmental funds group.
3. Capital Projects Funds - Capital Projects Funds will be established to account for all revenues designated for the acquisition of capital facilities except those facilities financed by special assessment.
4. Debt Service Fund - A Debt Service Fund within the
governmental fund group and in each proprietary fund, as appropriate, will be established to service the revenue and expense accounts devoted to the payment of interest and principal on long-term revenues and general obligation debt other than that payable from special assessments.
5. Trust Funds - Trust Funds will be established to account for revenues held by the City as a trustee.
6. Internal Service Funds - Internal Service Funds may be established to provide services efficiently and economically to other funds or departments and be accounted for under
proprietary fund rules.
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June 15, 2022
7. Special Assessment Funds - Special Assessment Funds will be established to account for the construction of public improvements that are financed by special levies against properties adjudged to receive benefits different than those received by the city residents, and for the maintenance and upkeep of such assets.
8. Enterprise Funds - Enterprise Funds will be established as proprietary funds with full accrual accounting that specialize in providing for utility or other fee-supported services to the public. These funds include water, wastewater, and solid waste.
9. Petty Cash Account - A Petty Cash Account will be
established as an interest cash account in an amount to be fixed by finance departmental policy. These funds are set aside for the purpose of making change or paying small
obligations for which the issuance of a formal voucher and check could be too expensive and time consuming. The
annual audit of City funds provides for a review of these disbursements.
10. Groups of Accounts - The City may employ self-balancing groups of accounts. These groups are general fixed assets group and general long-term debt group for governmental funds.
SECTION 5: Department of Recreation and Community Services. A Department of Recreation and Community Services is established under the direction and administration of the Recreation and Community Services Director.
These areas are:
A. Facilities Supervision;
B. Aquatics;
C. Langley Center;
D. Youth Activities;
E. Recreational Activities;
F. Community Participation; and
G. Community Transportation.
SECTION 6: Police Department. The Police Department is established under the direction and administration of the Chief of Police. These areas include:
Resolution Report
June 15, 2022
A. Administration;
B. Community Engagement;
C. Traffic Bureau;
D. Field Services;
E. Investigations;
F. Animal Services;
G. Communications;
H. Jail;
I. Records; and
J. Computer Services.
SECTION 7: Fire Department. The Fire Department is established under the direction and administration of the Fire Chief. These areas include:
A. Administration;
B. Prevention. Prevention is responsible for the implementation of a Building and Safety program, Fire Prevention program, Hazardous and Toxic Materials regulatory program;
C. Emergency Operations. Emergency Operations is responsible for the protection of life and property through the quick and effective extinguishment of fires, delivery of emergency medical services to victims of sudden illness and injury, mitigation of toxic and hazardous materials emergencies, response to a variety of emergency conditions which may threaten lives and property of the public, the planning and coordination of a City-wide disaster preparedness program, and the delivery of information and educational programs to the public;
D. Emergency Medical Services;
E. Community Risk Reduction; and
F. Code Enforcement. Code Enforcement is responsible for a general enforcement program, Housing Rehabilitation program, Public
Resolution Report
June 15, 2022
Education program and other activities related to permitting, plan checking, inspections and the enforcement of community standards.
SECTION 8: Public Works Department. A Public Works Department is established under the direction and administration of the Public Works Director.
These areas are:
A. Community transportation;
B. Street and Alley maintenance;
C. Storm drain maintenance;
D. Sanitary sewer maintenance;
E. Street cleaning;
F. Traffic control, Signage and Striping;
G. Street lighting;
H. Refuse collection;
I. Administration;
J. Water Commercial;
K. Water Production;
L. Water Distribution;
M. Water Capital Projects;
N. Parkway and City Tree inventory maintenance;
O. Parks;
P. Building Maintenance;
Q. Motor Pool Shop; and
R. Engineering;
SECTION 9: Human Resources and Risk Management Department. A Department of Human Resources and Risk Management is established under the
Resolution Report
June 15, 2022
direction and administration of the Human Resources and Risk Management Director. Under the direction of the Human Resources Director, the Department is responsible for recruitment and selection, classification, compensation and benefits, training, employee relations and labor negotiations, and risk management.
SECTION 10: Community Development Department. A Department of Community Development is established under the direction and administration of the City Planner or Community Development Director. These areas are:
A. Planning; and
B. Building and Safety.
SECTION 11: Library. A Library is established in accordance with the MPMC under the direction and administration of the Librarian. The Library is divided into the following areas:
A. Administration;
B. Reference and Adult Services;
C. Technical Services and Circulation;
D. Literacy; and
E. Children’s Services.
SECTION 12: Effect of Reorganization. Any new titles for departments, divisions, department heads and division heads as enacted by this Resolution supersede and replace any inconsistent terms, titles, or references appearing in previously enacted City of Monterey Park Ordinances, Resolutions, AP&P, and written policies.
SECTION 13: Environmental Review. This resolution is exempt from review under the California Environmental Quality Act (California Public Resources Code §§ 21000, et seq., “CEQA”) and CEQA regulations (14 California Code of Regulations (“CCR”) §§ 15000, et seq.) because it establishes rules and procedures to clarify existing policies and practices related to government organization; does not involve any commitment to a specific project which could result in a potentially significant physical impact on the environment; and constitutes an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. Accordingly, this Resolution does not constitute a “project” that requires environmental review ( see specifically 14 CCR § 15378(b)(4-5)).
of 7
Resolution Report
June 15, 2022
SECTION 14: Conflicts. In the event of a conflict between the provisions of this Resolution and the provisions the MPMC, any other resolution, or any resolution, the provisions of this Resolution govern. The City Manager is authorized to resolve any ambiguities. Any such determination must be forwarded to the City Council as an informational item when practicable.
SECTION 15: Electronic Signatures. This Resolution may be executed with electronic signatures in accordance with Government Code §16.5. Such electronic signatures will be treated in all respects as having the same effect as an original signature.
SECTION 16: Construction. This Resolution must be broadly construed in order to achieve the purposes stated in this Resolution. It is the City Council’s intent that the provisions of this Resolution be interpreted or implemented by the City and others in a manner that facilitates the purposes set forth in this Resolution.
SECTION 17: Recordation. The Mayor, or presiding officer, is authorized to sign this Resolution signifying its adoption by the City Council of the City of Monterey Park and the City Clerk, or her duly appointed deputy, may attest thereto.
SECTION 18: Effective Date. This Resolution will become effective immediately upon adoption and will remain effective unless repealed or superseded.
PASSED AND ADOPTED this 15th day of June 2022.
________________________
Henry Lo, Mayor ATTEST:
_____________________________
Vincent D. Chang, City Clerk
APPROVED AS TO FORM
______________________________
Karl H. Berger, City Attorney
City Council Staff Report
DATE: June 15, 2022
AGENDA ITEM NO:
TO: The Honorable Mayor and City Council
FROM: Christine Tomikawa, Director of Human Resources & Risk Management SUBJECT: Professional Services Agreement with Adminsure, Inc. to provide Third Party Administration services for the City’s Workers’ Compensation Claims program
RECOMMENDATION:
It is recommended that the City Council consider:
1. Authorizing the City Manager to execute a standard professional services agreement with Adminsure, Inc. in a form approved by the City Attorney, to provide Third Party Administration services for the City’s Workers’ Compensation program; or
2. Taking such additional, related, action that may be desirable.
EXECUTIVE SUMMARY:
The City’s contract for third party administration (“TPA”) services with Adminsure, Inc., for the Workers’ Compensation (“WC”) program, were bundled in the ICRMA administration fees which will expire June 30, 2022. Effective July 1, 2022, the City is recommending a professional services agreement with Adminsure, Inc. to continue the TPA services.
BACKGROUND:
In November 2021, the Council authorized the City of Monterey Park to withdraw from ICRMA and join a different insurance risk pool. To continue the TPA services for the Workers’ Compensation program, staff recommends the City of Monterey Park contract with Adminsure, Inc. The PSA will ensure a smooth transition with all current workers’ compensation claims and new claims under the new insurance risk pool. Adminsure has experience working with ICRMA and PRISM insurance pools’ processes and procedures.
Adminsure, Inc. has provided Workers’ Compensation services to public agencies since 1982. It provides all aspects of third party administration services from the initial paperwork for a workers’ compensation claim, case management, medical management, coordination of Workers’ Compensation (WC) benefits, return to work programs and required State of California audits and reports. The City utilizes an on- Consent Calendar - 3C
Staff Report
June 15, 2022
call service, Company Nurse, to initially triage employee injury reports/claims and these services will continue with the Adminsure agreement.
Staff recommends continuing the Workers’ Compensation TPA services with Adminsure, Inc. The terms of the agreement are:
Year 1 (2022-2023): $13,084/mo. estimated at $157,008 for the year.
Year 2 (2023-2024): 3% increase estimated at $161,718
Year 3 (2024-2025): 3% increase estimated at $166,570
Optional Year 4 and Year 5
FISCAL IMPACT:
Fiscal Year 2022-2023, the Human Resources and Risk Management Department budget has allocated appropriate funds for the estimated $157,008 TPA services fee.
Respectfully submitted by: Review by:
Christine Tomikawa
Director of Human Resources
and Risk Management
Martha Garcia
Director of Management Services
Approved by: Reviewed by:
Ron Bow
City Manager
Karl H. Berger
City Attorney
City Council Staff Report
DATE: June 15, 2022
AGENDA ITEM NO:
TO: The Honorable Mayor and City Council
FROM: Christine Tomikawa, Director of Human Resources & Risk Management SUBJECT: Professional Services Agreement with Ralph Andersen & Associates to conduct a City-wide Classification and Compensation Study RECOMMENDATION:
It is recommended that the City Council consider:
1. Authorizing the City Manager to execute a standard professional services agreement with Ralph Andersen & Associates in a form approved by the City Attorney, to conduct a City-wide Classification and Compensation Study; or
2. Taking such additional, related, action that may be desirable.
EXECUTIVE SUMMARY:
The City continues to evaluate best practices and processes in order to attract and retain well qualified candidates and employees. A classification and compensation study is a tool to help the City evaluate our current job descriptions, salaries, and benefits in comparison to other local public agencies.
Ralph Andersen & Associates provide services related to executive recruitments, labor relations, and human resources consulting. Ralph Andersen & Associates was one of two firms that submitted a response to the request for classification and compensation services. Staff is recommending a professional services agreement with Ralph Andersen & Associates to conduct a City-wide classification and compensation study.
BACKGROUND:
Conducting a classification and compensation study is considered a best practice for human resources services. The study provides data and information related to public agency job qualifications, salaries, and benefits. The City has not conducted a comprehensive classification and compensation study in the past 5 to 7 years. The classification part of the study will provide uniformity for job descriptions and recommended updates to job titles to be in line with current job title trends.
As the employment market has changed due to COVID-19, recruiting for qualified candidates is a challenge. The compensation part of the study will allow the City to evaluate our current place in the job market for job salaries and benefits. The study will Consent Calendar - 3D
Staff Report
June 15, 2022
review internal equity in terms of salary and provide valuable information for retention of current employees.
A classification and compensation study provides a snapshot of the City’s job descriptions, salaries, and benefits. The data will help the City to plan and build recruitment and retention strategies. The study allows us an opportunity to review today’s labor market trends and plan for future labor negotiation discussions. By bringing in a consultant to conduct with the study, the consultant is an added resource to share job market trends and their experience from other classification and compensation studies conducted.
Ralph Andersen & Associates is a well-respected human resources consultant for public sector agencies. It has performed classification and compensation studies for 50+ public agencies in the state of California in the last 5 years. Staff recommends entering into an agreement with Ralph Andersen & Associates to conduct a comprehensive classification and compensation study for the City.
FISCAL IMPACT:
The Finance division has re-allocated available funds for the $84,000 in the current fiscal year 2021-2022.
Respectfully submitted by: Review by:
Christine Tomikawa
Director of Human Resources
and Risk Management
Martha Garcia
Director of Management Services
Approved by:
Reviewed by:
Ron Bow
City Manager
Karl H. Berger
City Attorney
ATTACHMENTS:
1. Scope of Services
Staff Report
June 15, 2022
ATTACHMENT 1
Ralph Andersen & Associates – Scope of Services
A T r a d i t i o n o f E x c e l l e n c e S i n c e 1 9 7 2 5800 Stanford Ranch Road, Suite 410, Rocklin, California 95765 Phone: 916/630-4900 Fax: 916/630-4911 Website: www.ralphandersen.com June 1, 2022
Christine Tomikawa
Human Resources/Risk Management Director
City of Monterey Park
Via email: [email protected]
Christine:
This letter is to confirm the scope and cost to conduct a Classification and Compensation Study for the City of Monterey Park. Based on our discussions, the scope of work will include:
• Kick-off and on-going meetings (virtual) with the City project team and other stakeholders as needed.
• Briefing sessions with employees (virtual) to explain study objectives, process, and participation of employees.
• A thorough review of background documents including budgets, position control listings, existing job descriptions, organization charts.
• The distribution and review of Job Analysis Questionnaires to all employees in the study. • Job Analysis Interviews with employees including at least one employee in each job classification and a sampling of employees in multiple-position job classifications. • Classification recommendations including title changes, position allocations, and updated job descriptions; an employee review process will be used to obtain further feedback. • Analysis and confirmation of survey agencies to conduct a total compensation survey. • The collection, analysis, and reporting of salary and benefit data. • Selection of benchmark classifications, analysis of internal relationships, and development of salary recommendations including cost projections for different market positions • Preparation of draft reports in a format acceptable to City including a presentation and review/discussion of the draft report with appropriate City representatives.
The fixed cost for the above scope of work is $84,000. If additional work is required beyond the scope of the project, it will be billed on an hourly basis at a rate of $145 per hour. If on-site meetings are required, these will be billed for time and expenses at a cost not to exceed $1,500 per meeting.
Sincerely,
Douglas B. Johnson
Vice President
Attachment 1
City Council Staff Report
+
DATE
: June 15, 2022
AGENDA ITEM NO:
TO: T
he Honorable Mayor and City Council
FROM: Christine Tomikawa, Director of Human Resources and Risk Management
SUBJECT: Resolution approving the Memorandum of Understanding between the City and the Monterey Park Professional Chief Officers’ Association for the term of July 1, 2022 to June 30, 2023
RECO
MMENDATION:
It is recommended that the City Council consider:
1. Adopting a Resolution approving a Memorandum of Understanding (“MOU”) between the City of Monterey Park and the Monterey Park Professional Chief Officers’ Association (“MPPCOA”). The MPPCOA represents the battalion chiefs in the Monterey Park Fire Department;
2. Authorizing budget appropriation of approximately $24,626 from the General Fund and $13,500 from the American Rescue Plan Act (ARPA) Funds for the 2022-2023 fiscal year; and
3. Taking such additional, related, action that may be desirable.
EXECU
TIVE SUMMARY:
Repr
esentatives of the City of Monterey Park (“City”) and MPPCOA met and conferred to negotiate the terms and conditions of a new Memorandum of Understanding (“MOU”) regarding employment. The parties reached an agreement on an MOU effective July 1, 2022 to June 30, 2023.
BACKGRO
UND:
MPPO
CA’s current MOU term is valid from July 1, 2018 to June 30, 2022. On May 31, 2022 MPPOCA’s representatives agreed to the following terms and conditions:
• One y
ear agreement – July 1, 2022 to June 30, 2023
• Base salary increase – 1% cost of living adjustment to base salary effective the first full pay period starting after July 1, 2022 or Council approval of this MOU whichever is later.
• Article 16 – Cafeteria Plan increase monthly contribution for active employees from $1,445/mo. to $1995/mo.
Consent Calendar - 3E
Staff Report
June 15, 2022
• Modification to MOU language for:
o Article 8 – Vacation and Holidays
o Irrevocable election method for all discretionary leave cash out(s) o Article 15 – Uniforms
• Essential Worker Premium Pay – non-PERSable lump sum of $4,500 per employee covered by the MPPOCA MOU, who was employed in the unit prior to March 31, 2021 and is still employed in this unit on the date of distribution.
To be distributed with the first payroll distribution after July 1, 2022 or after Council adoption of this MOU, whichever is later. Me-too language if other sworn associations receive a higher Essential Worker Premium Pay within four months of adopting this MOU.
FISCAL IMPACT:
The total cost of the MOU are estimated at a total of $38,126. This amount will be paid by the City’s General Fund ($24,262) and paid by the American Rescue Plan Act of 2021 Fund ($13,500).
Respectfully submitted by: Review by:
Christine Tomikawa
Director of Human Resources
and Risk Management
Martha Garcia
Director of Management Services
Approved by:
Reviewed by:
Ron Bow
City Manager
Karl H. Berger
City Attorney
ATTACHMENTS:
1. Monterey Park Professional Chief Officers’ Association MOU – redline version
2. MOU Resolution
Staff Report
June 15, 2022
ATTACHMENT 1
Monterey Park Professional Chief Officers’
Association Memorandum of Understanding –
Redline version
LCW_DMS\MO110\171\10098704.v1-6/5/22
MEMORANDUM OF UNDERSTANDING
between
THE CITY OF MONTEREY PARK, CALIFORNIA
and
THE MONTEREY PARK PROFESSIONAL CHIEF OFFICERS'
ASSOCIATION
FOUR-YEAR AGREEMENT: July 1, 20222018 – June 30, 20232022
LCW_DMS\MO110\171\10098704.v1-6/5/22 i
TABLE OF CONTENTS
MEMORANDUM OF UNDERSTANDING
Between
THE CITY OF MONTEREY PARK
and
THE MONTEREY PARK PROFESSIONAL CHIEF OFFICERS' ASSOCIATION (Four-Year Agreement July 1, 20222018 - June 30, 20232022)
ARTICLE 1 - SCOPE OF REPRESENTATION .........................................................................1 ARTICLE 2 - RECOGNITION ....................................................................................................1 ARTICLE 3 - CITY RESPONSIBILITIES AND RIGHTS .........................................................1 ARTICLE 4 - EMPLOYEE AND/OR EMPLOYER REPRESENTATIVES .............................1 ARTICLE 5 - COMMUNICATIONS ..........................................................................................2 ARTICLE 6 - CONTINUED PERFORMANCE OF CITY SERVICES AND OPERATIONS23 ARTICLE 7 - GRIEVANCE PROCEDURE ...............................................................................3 ARTICLE 8 - VACATION AND HOLIDAYS ...........................................................................7 ARTICLE 9 - SICK LEAVE ....................................................................................................109 ARTICLE 10 - BEREAVEMENT LEAVE ...........................................................................1211 ARTICLE 11 - MILITARY LEAVE ......................................................................................1311 ARTICLE 12 - JURY DUTY .................................................................................................1311 ARTICLE 13 - LEAVE OF ABSENCE .................................................................................1311 ARTICLE 14 - ADMINISTRATIVE LEAVE .......................................................................1312 ARTICLE 15 - UNIFORMS ...................................................................................................1412 ARTICLE 16 - HEALTH INSURANCE ...............................................................................1513 ARTICLE 17 - RETIREE HEALTH SAVINGS PLAN.....…………………………………….15
ARTICLE 18 - EDUCATIONAL ENROLLMENT COST REIMBURSEMENT ……………..15
ARTICLE 19 - EDUCATIONAL INCENTIVE PAY ...........................................................1817 ARTICLE 20 - TRAVEL REIMBURSEMENT ....................................................................1917
LCW_DMS\MO110\171\10098704.v1-6/5/22 ii
ARTICLE 21 - RETIREMENT BENEFITS ..........................................................................1917 ARTICLE 22 - SALARIES AND WAGES ...........................................................................2018 ARTICLE 23 - WORK SCHEDULE .....................................................................................2018 ARTICLE 24 - ACTING/TEMPORARY ASSIGNMENTS .................................................2119 ARTICLE 25 - PHYSICAL EXAMINATIONS ....................................................................2220 ARTICLE 26 – 401 (A) PLAN / DEFERRED COMPENSATION PLAN ...........................2321 ARTICLE 27 - SPECIAL MANAGEMENT COMPENSATION PAY ....................................22 ARTICLE 28 - WRITTEN NOTICES TO RECOGNIZED EMPLOYEE ORGANIZATION 2423
ARTICLE 29 - GENERAL PROVISIONS ............................................................................2423 ARTICLE 30 - TERM OF MEMORANDUM OF UNDERSTANDING .............................2523 ARTICLE 31 - MODIFIED DUTY ELIGIBILITY ...............................................................2524 ARTICLE 32 - INDUSTRIAL DISABILITY RETIREMENT..............................................2524 ARTICLE 33 - SICK LEAVE USE IN CONJUNCTION WITH IOD ..................................2524 ARTICLE 34 - FMLA/CFRA COMPLIANCE AND LEAVE POLICY ..............................2624 ARTICLE 35 - CITY COUNCIL APPROVAL .....................................................................2625 ADDENDUM A ........................................................................................................................ 26 ADDENDUM B ………………………………………………………………………………26
1 LCW_DMS\MO110\171\10098704.v1-6/5/22
MEMORANDUM OF UNDERSTANDING
Between
THE CITY OF MONTEREY PARK
and
THE MONTEREY PARK PROFESSIONAL CHIEF OFFICERS' ASSOCIATION (FOUR-Year Agreement July 1, 20222018 - June 30, 20232022)
This Memorandum of Understanding (MOU) has been prepared in accordance with the California Government Code (Section 3500 et seq.). The City of Monterey Park, California, hereinafter referred to as the "City," and the Monterey Park Professional Chief Officers' Association, hereinafter referred to as “PCOA” have reached this Memorandum of Understanding pursuant to meeting and conferring in good faith.
ARTICLE 1 - SCOPE OF REPRESENTATION
The scope of representation of PCOA shall include matters relating to employment conditions and employer-employee relations including but not limited to wages, hours and other terms and conditions of employment.
The wages, hours and working conditions specified in this MOU shall constitute the wages, hours and working conditions for the term of this MOU.
ARTICLE 2 - RECOGNITION
A. The Monterey Park Professional Chief Officers' Association (PCOA) is hereby recognized as the exclusive Recognized Employee Organization for those employees occupying the job classifications of Fire Division Chief and Fire Marshal.
B. The City acknowledges PCOA as the representative for employees in the Fire Department for the purpose of meeting and conferring in good faith regarding wages, hours, and other terms and conditions of employment.
ARTICLE 3 - CITY RESPONSIBILITIES AND RIGHTS
To ensure that the City is able to carry out its statutory functions and responsibilities, the following matters will not be subject to the terms of this MOU, but shall be within the exclusive discretion of the City: to select and determine the number and types of employees required; to assign work to employees in accordance with the requirements determined by the City; to establish and change work schedules and assignments; to hire, transfer and to promote or to lay off employees for lack of work and for all other legitimate reasons; to suspend, discipline or discharge for just cause; to expand or diminish services; to subcontract any work or operations; to determine and change methods of operations; to determine and change, at its sole discretion, the number of locations, relocations and types of operations and the processes and materials to be employed.
ARTICLE 4 - EMPLOYEE AND/OR EMPLOYER REPRESENTATIVES
A. All employees represented by PCOA, shall have the right to join PCOA, or to refuse or refrain from joining PCOA.
B. Members of PCOA may, by any reasonable method, select three (3) representatives who may
2 LCW_DMS\MO110\171\10098704.v1-6/5/22
or may not be City employees to meet and confer with the City Representative Committee or other management officials on subjects within the scope of representation during regular or working hours, without loss of time, provided:
1. That no employee representative shall leave duty or workstation or assignment without specific approval by any authorized departmental management official.
2. That any such meeting is subject to scheduling by an authorized departmental management official so as to avoid interference with or interruption of assigned work scheduled or work performance.
C. The City will deduct dues and initiation fees from those employees who voluntarily sign and have submitted to the City the necessary authorization card. Deductions as authorized by the employee shall be deducted from earned wages or salaries each pay period. The City shall forward to PCOA during the succeeding week all dues and/or initiation fees deducted from the employees.
D. PCOA shall indemnify, defend, and hold the City harmless against any claim and any suit instituted by an employee against the City which shall arise out of any action which shall be taken by the City in accordance with the section regarding dues deduction.
E. PCOA representatives, while on City property, shall abide by the City's safety rules and regulations.
F. Such individuals, after being excused from their regular assigned duties by the Fire Chief or delegated representative, will be permitted to take reasonable time to discuss terms and conditions as set forth in this MOU.
G. Said employee or employees, if on duty, shall be paid for such reasonable time by the City at the employee's base rate of pay. However, no overtime will be paid by the City for time spent as set forth above, except if and when the employee is working a relief overtime shift.
H. A written list of the Officers of PCOA and the Employee Representatives shall be furnished to the City immediately after their designation and PCOA shall notify the City promptly in writing of any changes of such Officers or Representative.
ARTICLE 5 - COMMUNICATIONS
Space shall be provided on City bulletin boards for the posting of the following notices of immediate concern to the employee group members:
1. PCOA recreational and social activities.
2. PCOA election notices and results.
3. PCOA meetings and events.
4. Such other notices as may be mutually agreed upon by PCOA and the Fire Chief or representative.
ARTICLE 6 - CONTINUED PERFORMANCE OF CITY SERVICES AND OPERATIONS
A. PCOA hereby agrees that during the term of this MOU, the employees of PCOA, the officers
3 LCW_DMS\MO110\171\10098704.v1-6/5/22
and/or agents of PCOA shall not engage in, encourage, sanction, support, authorize or suggest any work stoppages, strikes, boycotts, slowdowns, mass resignation, mass absenteeism, picketing, or any other intentional interference of work of the City.
B. In the event any employee, or employees, participate in any such activities as set forth above, PCOA shall notify such employee or employees, so engaged to cease and desist from such activities and shall instruct said person, or persons, to return to their normal work assignment and duties.
C. The employee, or employees, participating in such activities as set forth in paragraphs A and B above, shall be subject to disciplinary action by the City, including suspension or discharge in accordance with the City's Personnel Rules and Regulations.
ARTICLE 7 - GRIEVANCE PROCEDURE
A. DEFINITIONS
1. A "grievance" is an allegation by a member or PCOA on behalf of specified unit members of the bargaining unit who have been adversely affected by an alleged violation of the specific provisions of this Memorandum of Understanding during its term, or an appeal of a disciplinary action decision by the City Manager.
2. A "disciplinary appeal" is a formal written objection or challenge to any disciplinary action as defined by the Personnel Rules and Regulations. The grievance procedure shall not be utilized by an employee to contest the content of a performance evaluation, verbal or written reprimands or other documentation regarding the employee's work performance yet which is not defined as "disciplinary action" by Rule XV of the City Personnel Rules and Regulations. A "disciplinary appeal" shall be filed after written receipt of the City Manager's decision, and shall constitute the sole and exclusive process of appeal. Such appeals shall be processed at Level IV, Arbitration.
Discipline shall be imposed in such a manner as to not violate the FLSA with regard to “exempt” employees.
3. Disputes regarding jurisdiction (grievable of an issue) shall not be subject to resolution by the grievance procedure and instead, are subject to resolution by an arbitrator.
4. A "grievant" is any unit member or PCOA on behalf of specified unit members adversely affected by an alleged violation of the specific provisions of this MOU, or a punitive disciplinary action.
5. A "day" is any day in which the administrative offices of the City of Monterey Park are open for regularly scheduled business.
B. GENERAL PROVISIONS
1. If an employee is receiving direction from his/her supervisor but believes the direction forms the basis for a viable grievance, the employee must still comply with the direction. If the grievance is ultimately sustained only then may the employee not comply with that directive.
4 LCW_DMS\MO110\171\10098704.v1-6/5/22
2. Grievance documents shall not be placed in the personnel file unless they relate to discipline. If they relate to discipline, they will not be placed in the employee’s personnel file until after the discipline appeal process (if applicable) is completed.
3. Time limits for appeal provided at any level of this procedure shall begin the first day following receipt of the written decision by the grievant and/or the PCOA. Failure of the grievant to adhere to the time deadlines shall mean that the grievant is satisfied with the previous decision and waives the right to further appeal. If the City fails to respond to the grievant by the deadline to respond at any step in the grievance process, that shall constitute a denial of the grievance at that step and the grievant’ s time to file an appeal to the next step will start the following day. The grievant and the City may extend any time deadline by mutual agreement.
4. Every effort will be made to schedule meetings for the processing of grievances at times that will not interfere with the regular work schedule of the participants. If any grievance meeting or hearing must be scheduled during duty hours, any employee required by either party to participate as a witness or grievant in such meeting or hearing shall be released from regular duties without loss of pay for a reasonable amount of time.
5. Any unit member may at any time present grievances to the City and have such grievances resolved without the intervention of PCOA, as long as the resolution is reached prior to arbitration and the resolution is not inconsistent with the terms of this MOU; provided that the City shall not agree to a resolution of the grievance until PCOA has received a copy of the grievance and the proposed resolution and has been given the opportunity to file a response within twenty (20) days. Upon request of the grievant, the grievant may be represented at any stage of the grievance procedure by a representative of the PCOA, which may include the attorney of PCOA.
6. This grievance procedure shall be the sole and exclusive procedure for processing objections or challenges to disciplinary actions as defined in the Personnel Rules and Regulations and shall satisfy all administrative appeal rights and protections.
7. There shall be no reprisals against any Department employee for processing a grievance at any level, or for assisting a grievant in the processing of a grievance.
C. PROCEDURE - Grievances will be processed in accordance with the following procedures:
1. Level I - Informal Resolution
a. Any unit member who believes he/she has a grievance which is an alleged violation of the specific provisions of this Memorandum of Understanding shall present the grievance orally to the Fire Chief within fifteen (15) days after the grievant knew, or reasonably should have known, of the circumstances which form the basis for the grievance. Failure to do so will mean the grievance is untimely and shall not be processed.. The Fire Chief shall hold discussions and attempt to resolve the matter within ten (10) days after the presentation of the grievance. It is the intent of this informal meeting that at least one personal conference be held between the aggrieved employee and the Fire Chief.
5 LCW_DMS\MO110\171\10098704.v1-6/5/22
2. Level II - Formal Written Grievance
a. If the grievance is not resolved during the informal conference and the grievant wishes to continue the grievance process, the grievant shall present the grievance in writing on the appropriate form to the Fire Chief within ten (10) days after conclusion of Level I. The written information shall include: (a) A description of the specific grounds of the grievance, including names, dates, and places necessary for a complete understanding of the grievance; (b) A listing of the provisions of this agreement which are alleged to have been violated; (c) A listing of the reasons why the Level I proposed resolution of the problem is unacceptable; and (d) A listing of specific actions requested of the City which will remedy the grievance.
b. The Fire Chief or designated representative shall communicate his/her decision, in writing, to the grievant within ten (10) days after receiving the grievance.
c. Within the above time limits, either party may request a personal conference.
3. Level III - Appeal to the City Manager
a. If the grievant is not satisfied with the decision at Level II the grievant may, within ten (10) days of the receipt of the decision at Level II, appeal the decision to the City Manager. This statement shall include a copy of the original grievance and appeal, and a clear, concise statement of the reasons for the appeal.
b. The City Manager shall communicate the decision, in writing, to the grievant within ten (10) days. If the City Manager does not respond within the time limits provided, the grievant may appeal to the next level.
4. Level IV - Binding Arbitration
a. If the grievant is not satisfied with the decision at Level III, or if an employee wishes to appeal the disciplinary decision of the City Manager, the grievant/employee may, within ten (10) days of the receipt of the decision, submit a request in writing to PCOA for arbitration of the dispute. Within twenty (20) days of the grievant's receipt of the decision at Level III, PCOA shall inform the City, in writing, of its intent to arbitrate. PCOA and the City shall attempt to agree upon an arbitrator. If no agreement can be reached, they shall request that the State Mediation and Conciliation Service supply a panel of seven (7) names of persons experienced in hearing grievances in cities.
Each party shall alternately strike a name until only one remains. The remaining panel member shall be the arbitrator. The order of the striking shall be determined by coin toss.
b. The arbitrator shall, within thirty (30) days unless both parties agree otherwise, hear evidence and render a decision on the issue or issues submitted to him/her.
6 LCW_DMS\MO110\171\10098704.v1-6/5/22
If the parties cannot agree upon a submission agreement, the arbitrator shall determine the issues by referring to the written grievance and the answers thereto at each step.
c. The City and PCOA agree that the jurisdiction and authority of the arbitrator so selected and the opinions the arbitrator expresses will be confined exclusively to the interpretation of the express provision or provisions of this MOU at issue between the parties. The arbitrator shall have no authority to add to, subtract from, alter, amend, or modify any provisions of this MOU or the written ordinances, resolutions, rules, regulations and procedures of the City, nor shall he/she impose any limitations or obligations not specifically provided for under the terms of this MOU. The arbitrator shall be without powers or authority to make any decision that requires the City or management to do an act prohibited by law.
d. In the event that this grievance procedure is used to challenge disciplinary actions, the arbitrator shall prepare a written decision containing findings of fact, determination of issues, and statement of the precise disciplinary penalty, if any.
e. After a hearing and after both parties have had an opportunity to make written arguments, the arbitrator shall submit in writing to all parties his/her findings and award.
f. The award of the arbitrator shall be final and binding within sixty (60) days of submission. During this sixty (60) day period either party may request in writing a clarification of the decision. A copy of such request must be provided to the other party simultaneously with the sending of the request to the arbitrator.
g. The fees and expenses of the arbitrator(s) shall be shared equally by the City and PCOA. All other expenses shall be borne by the party incurring them, and neither party shall be responsible for the expense of witnesses called by the other. Either party may request a certified court reporter to record the entire arbitration hearing. The cost of the services of such court reporter shall be shared equally by the the City and PCOA; however, the party ordering a transcript shall be responsible for the entire transcription fee.
h. By filing a grievance and processing it beyond Level III, the grievant expressly waives any right to statutory remedies or to the exercise of any legal process other than as provided by this grievance/arbitration procedure. The processing of a grievance beyond Level III shall constitute an express election on the part of the grievant that the grievance/arbitration procedure is the chosen forum for resolving the issues contained in the grievance, and that the grievant will not resort to any other forum or procedure for resolution or review of the issues.
The parties do not intend by the provisions of this paragraph to preclude the enforcement of any arbitration award in any court per Civil Code Procedure section 1286 et seq.
i. The City and PCOA agree to binding arbitration for disciplinary appeals and
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these provisions for discipline are intended to comply with the Firefighters’ Bill of Rights.
ARTICLE 8 - VACATION AND HOLIDAYS
It is the intent and purpose of this vacation and holiday leave policy that all employees avail themselves of accrued vacation and holiday time in order to promote a safe and productive working environment. However, the parties do recognize that personal circumstances and/or the staffing requirements of the Fire Department may periodically impact the ability of an employee to utilize any or all of his/her annual vacation and holiday accrual.
A. VACATION PROGRAM
1. It is the policy of the City that no employee may accrue greater than 432 vacation hours. Upon accrual of 432 hours, no unit member shall accrue any additional vacation hours nor be compensated for any vacation hours in excess of 432 hours unless and until utilization of accrued vacation time results in the employee's vacation account totaling less than 432 hours.
In those instances where an employee has accumulated vacation hours on or before March 10, 1995, the employee shall be subject to two (2) separate vacation banks. The first vacation bank (Bank No. 1) shall consist of the total number of vacation hours accrued on or before March 10, 1995. The number of vacation hours contained within Bank No. 1 shall not increase.
At the sole discretion of the Fire Chief, special consideration may be given to an employee's written request to accumulate vacation credits in excess of the maximum allowable vacation balance of 432 hours Said approved credits will be converted to Bank No. 1.
2. Sworn Fire Members Assigned to Twenty-four Hour Shift Work: Employees covered under this MOU, with the exception of temporary appointments, shall accumulate vacation with pay as follows:
Years of Number of Years of Number of Service Shifts Allowed Service Shifts Allowed 1 6 shifts 11 9 shifts
2 6 shifts 12 9 shifts
3 6 shifts 13 9 shifts
4 6 shifts 14 10 shifts
5 6 shifts 15 10 shifts
6 6 shifts 16 11 shifts
7 6 shifts 17 11 shifts
8 7 shifts 18 12 shifts
9 7 shifts 19 12 shifts
10 9 shifts 20 13 shifts
3. Sworn Fire Members Assigned to a Forty-Hour Week: An employee covered under this MOU, who is required to work a forty-hour workweek, with the exception of temporary appointments, shall accumulate vacation with pay as follows:
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After one (1) year of paid service, vacation leave with pay shall be granted each permanent employee at the rate of eighty (80) hours each year. Additional vacation leave with pay shall be granted at the rate of eight (8) hours each year, beginning with the employee's sixth (6th) anniversary. Maximum vacation per year is one hundred-ninety two (192) hours.
4. 4. Sworn Fire members assigned to a twenty-four hour shift may, annually during any fiscal year, elect to cash out up to 6 shifts (144 hours) of vacation time. The effective date(s) of any such cash-out is to be determined by the employee.
Sworn Fire members assigned to a forty-hour workweek may, annually during any fiscal year, elect to cash out up to seventy-two (72) hours of vacation time The effective date(s) of any such cash-out to be determined by the employee.
5. Effective January 1, 2023 and continuing thereafter, employees must submit an irrevocable election form, by no later than December 15 th of the preceding calendar year, to cash-out vacation leave, up to 144 hours of leave that may accrue in the following calendar year. The cash-out is for hours to be accrued in the calendar year following submission of the irrevocable election form.
The payment shall be made via payroll with the last paycheck in the following December after receipt of the irrevocable election form.
Employees who do not submit an irrevocable election form by December 15 th will be deemed as foregoing participation in the optional annual leave cash-out program for that following calendar year.
In the event an employee has less hours in their leave bank at the time the cash-out is to be paid than they had previously elected to cash-out, the employee shall only be paid for up to the amount remaining in their designated leave bank at the time of the actual cash-out.
If an employee makes an irrevocable election to cash-out leave in the following calendar year and uses leave during that subsequent calendar year, the leave used may come from leave the employee had earned (if any) prior to January 1 st of the calendar year the employee had elected to cash-out and/or in the same calendar year. The employee’s use of earned, but unused leave accumulate from previous calendar years shall not result in a reduction in the amount of leave hours the employee is eligible to cash-out.
6. An employee who experiences an unforeseeable emergency may be permitted to make a new irrevocable election and/or to increase the amount of a previous election, subject to the same value that was permitted at the time the annual irrevocable election forms were due.
For these purposes, an “unforeseeable emergency” means a financial hardship to the employee resulting from any of the following:
Accident, illness, injury or death of the employee or an immediate family
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member. For this purpose, an “immediate family member” is restricted to a spouse, registered domestic partner, child/legal dependent, or parent; or
Loss of extensive damage to the employee’s property due to casualty; or
Other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the participant.
Whether an occurrence is an unforeseeable emergency shall be solely determined by the City Manager or designee.
The payment shall be made with the last paycheck in December of the same calendar year.
7. Any cash-out of vacation leave shall not cause the employee’s total amount of accumulated vacation leave bank 2 to fall below two hundred (200) hour minimum balance. Cash-out of accumulated time shall be at the employee’s option. Requests for cash-out are to be submitted in a manner prescribed by the City.
B. HOLIDAYS
Except as modified herein, holidays shall be governed as defined in Rule XI, Attendance and Leaves, Section 7, Holidays, of the Personnel System Rules and Regulations of the City of Monterey Park.
1. Effective the first full pay period starting after July 1, 2022 or Council approval of this MOU whichever is later, Association members shall accrue twelve (12) holiday hours per month. Any holiday time accrued shall be automatically cashed out in the first full pay period after December 1 of each year. There is no carry over of holiday time. Employees assigned to twenty-four hour shifts shall be paid the cash value in lieu of time off for holidays. Twelve (12) hours of holiday pay will be paid during the first pay period of each month.
1. Use of holiday accrued time shall be governed by Article 8 (C) of this MOU.
2. Employees assigned to a forty hour work schedule receive time off (same holiday closures as City Hall) for the following holidays:
New Year’s Day Thanksgiving Day
Washington’s Birthday Friday after Thanksgiving Day
Memorial Day Christmas Eve Day
Independence Day Christmas Day
Labor Day New Year’s Eve Day
Veteran’s Day
In addition, employees assigned to a forty hour work schedule receive two floating holidays. Floating holiday hours have a maximum accrual of thirty-two (32) hours. Once employees reach the maximum, no additional hours accrue until the use of leave reduces the accrual below thirty-two.
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C. APPROVAL TO USE VACATION AND HOLIDAY TIME REMAINING IN HOLIDAY BANKS
Subject to the exceptions described herein, upon a written request thirty (30) calendar days in advance of any such requested date(s) to utilize specified dates(s) of vacation and/or holiday time, the Fire Chief shall grant the leave request. However, the Fire Chief shall be authorized to deny any or all leave requests upon a written determination made by the Fire Chief and/or his/her designee that the granting of such leave request would or might disrupt the operations of the Department. However, it is specifically acknowledged that the fact that overtime expenses will or may be incurred as a result of the granting of leave utilization when thirty (30) calendar days advanced notice is provided as described herein, shall not constitute a consideration in the administration's determination that granting of the leave will or may disrupt operations of the Department.
In any case where an employee provides less than thirty (30) calendar days written notice to the Fire Chief of the employee's request to use earned vacation and/or holiday time, then the Fire Chief shall have the authority and discretion for any reason (including but not limited to real or potential overtime impact, real or potential disruption to the operations of the Department, or real or potential safety impact) to deny the vacation and/or holiday leave request. The Fire Chief’s exercise of its discretion in this regard shall not be subject to administrative, civil or any other review or challenge.
Additionally, granting of any request to utilize earned vacation and/or holiday time shall be subject to the proviso that in no case shall more than one Division Chief be authorized to utilize said leave during all or part of the same shift dates(s). Where requests to utilize said leave exceeds the per shift classification number described in this paragraph, then the request filed earliest shall have priority. In cases where requests are filed simultaneously, priority shall be given to the most senior (in total City service) applicant.
ARTICLE 9 - SICK LEAVE
Sick Leave with pay shall be granted to every full-time employee who has been continuously employed for a period of time in excess of 30 days. Effective the pay period that includes January 1, 2020, the hours of sick leave earned by each employee annually will be reduced from one-hundred forty-four (144) hours to ninety-six (96) hours per year to allow forty-eight hours at regular rate of pay to be used for a new Retiree Health Savings Plan (see Article 17, page 15 for the Retiree Health Savings Plan). The forty-eight (48) hour contribution shall be prorated at the rate of four (4) hours per month. .
A. Sick Leave Use
Sick leave is used on an hour for hour basis. For example, employees who work 24 hour shifts and are absent for the full 24 hours will have sick leave of 24 hours deducted from their sick leave bank.
Sick leave is paid leave from work that can be used for the following purposes:
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(a) diagnosis, care, or treatment of an existing health condition of, or preventative care for, an employee or any of the following of the employee’s family members: child of any age or dependency status; parent; parent-in-law; spouse; registered domestic partner; grandparent; grandchildren; or sibling; or
(b) for an employee who is a victim of domestic violence, sexual assault, or stalking to: i) obtain or attempt to obtain a temporary restraining order or other court assistance to help ensure the health safety or welfare of the employee or his or her child; or ii) obtain medical attention or psychological counseling; services from a shelter; program or crisis center; or participate in safety planning or other actions to increase safety.
For full time employees, one-half of the employee's accrued and available annual sick leave is protected and may be used for any of the purposes stated above.
B. Credit for Unused Sick Leave
The City contracts with CalPERS for the Credit for Unused Sick Leave option (Section 20965). Any amount of sick leave accrued and not taken as cash payment will be reported to CalPERS for calculation as additional service credit.
C. Sick Leave Cash Out
a. Individuals employed by the City as of July 1, 2012 had their existing sick leave balances (as of July 1, 2012) transferred to a separate sick leave bank (Bank 1). No additional leave could be added to this bank. Employees with hours in this bank can choose to use those hours for sick leave purposes. In addition, upon service retirement from the City, the City will cash out 50% of the sick leave hours in this leave bank to the employee at their rate of pay at the time of retirement.
b. Beginning July 1, 2012, with the establishment of the 12 hour per month sick leave accrual and sick leave maximum of 800 hours, a new sick leave bank (Bank 2) was established. For employees with ten years of City of Monterey Park service at the time of service retirement, are eligible to cash out sick leave from this bank at the rate of fourteen (14) hours for every full year (12 months) of City service beginning from the date of employment.
c. Effective January 1, 2023 and continuing thereafter, employees must submit an irrevocable election form, by no later than December 15 th of the preceding calendar year, to cash-out sick leave up to 144 hours that may accrue in the following calendar year. The cash-out is for hours to be accrued in the calendar year following the submission of the irrevocable election form.
The payment shall be made via payroll with the last paycheck in the following December after receipt of the irrevocable election form.
Employees who do not submit an irrevocable election form by December 15 th will be deemed as foregoing participation in the optional annual leave cash-out program for that following calendar year.
In the event an employee has less hours in their leave bank at the time of the cash-out
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is to be paid than they had previously elected to cash-out, the employee shall only be paid for up to the amount remaining in their designated leave bank at the time of the actual cash-out.
b. If any employee makes an irrevocable election to cash-out leave in the following calendar year and uses leave during that subsequent calendar year, the leave used may come from leave the employee had earned (if any) prior to January 1st of the calendar year the employee had elected to cash-out and/or in that same calendar year.
The employee’s use of earned, but unused leave accumulated from previous calendar years shall not result in a reduction in the amount of leave hours the employee is eligible to cash-out.
d. An employee who experiences an unforeseeable emergency may be permitted to make a new irrevocable election and/or to increase the amount of a previous election, subject to the same value that was permitted at the time the annual irrevocable election forms were due.
For these purposes, an “unforeseeable emergency” means a financial hardship to the employee resulting from any of the following:
Accident, illness, injury or death of the employee or an immediate family member. For this purpose, an “immediate family member” is restricted to a spouse, registered domestic partner, child/legal dependent, or parent; or
Loss or extensive damage to the employee’s property due to casualty; or
Other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the participant.
Whether an occurrence is an unforeseeable emergency shall be solely determined by the City Manager or designee.
The payment shall be made with the last paycheck in December of that same calendar year.
e. Any cash-out of sick leave shall not cause the employee’s total amount of accumulated sick leave in their sick leave bank 2 to fall below two hundred (200 hour minimum balance. Cash-out of accumulated time shall be at the employee’s option. Requests for cash-out are to be submitted in a manner prescribed by the City.
c.f. In the event of the death of an employee prior to retirement, The City will pay to the employee’s designated beneficiary any sick leave cash out that the employee would have been eligible to receive upon a service retirement from the City.
ARTICLE 10 - BEREAVEMENT LEAVE
A. Each regular employee may be granted bereavement leave at the discretion of the Fire Chief whenever death occurs to a member of the employee’s immediate family. Bereavement leave
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may not exceed three working days, or in the case of Fire personnel working a 24-hour shifts schedule, three shifts. However, if travel outside the State of California, or within the State of California but extending beyond a distance of 300 miles from Monterey Park is necessary, bereavement leave may be extended to a total of five working days, or in the case of Fire personnel working a 24 hour shift schedule, five shifts. Bereavement Leave is to be charged to an account separate from the employee’s sick leave account.
B. Immediate family, for the purpose of bereavement leave, shall include: spouse, registered domestic partner, father, father-in-law, mother, mother-in-law, child, stepchild, grandparents, grandchildren, brother, brother-in-law, sister or sister-in-law of the employee.
ARTICLE 11 - MILITARY LEAVE
Military Leave of Absence shall be granted in accordance with provisions of the City of Monterey Park’s Personnel System Rules and Regulations, Administrative Policy 30-14 and as defined under State and Federal law.
ARTICLE 12 - JURY DUTY
An employee of the City who is required to participate as a juror, required to participate in the jury selection process, or required to appear in court as a witness except as the litigant in the case, shall be paid up to and including ten (10) days of salary and benefits during each fiscal year while engaged in such activities. Compensation shall extend beyond ten (10) days only upon provision to the City of a certified court document showing that trial counsel and/or the court estimated the trial for which an employee has been selected as a juror, was to have been ten (10) days or less in duration.
Under such circumstances, the employee shall receive his/her regular salary while on such leave, provided that the employee remits to the City any payments or fees received as a juror or witness, excluding mileage reimbursement.
ARTICLE 13 - LEAVE OF ABSENCE
As defined in Rule XI, Attendance and Leaves, Section 4, Leave of Absence, of the Personnel System Rules and Regulations of the City of Monterey Park.
A. When an employee maintains a non-paid employment status, the City shall make no premium or other contribution to insurance coverage except as may be required by provisions of the FMLA and/or CFRA. The employee may be required to deposit any and all insurance premiums with the City for remittance by the City to the carrier or to the carrier directly.
B. Prior to being placed on a leave of absence without pay, as permitted under any applicable law (e.g., CFRA, FMLA, PDL), employees must exhaust all accrued leave. Absence without pay for a period greater than 50% of a pay period shall result in no leave benefits or seniority accrual for said period of time.
ARTICLE 14 - ADMINISTRATIVE LEAVE
A. Represented FLSA exempt employees covered under this MOU shall receive 48 hours of Administrative Leave each July 1.
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B The times during the fiscal year at which an employee may take his/her administrative leave shall be determined by the Fire Chief with due regard for the wishes of the employee and the needs of the service. Eligibility for this leave shall not be predicated upon first having all vacation and sick leave exhausted. Administrative leave may be utilized at any time during the fiscal year.
C. Employees requesting to utilize his/her administrative leave shall complete a Leave of Absence Request form and forward the approved form to payroll.
ARTICLE 15 - UNIFORMS
A. Uniforms Provided
1. The uniform allowance shall be eight hundred and sixseven hundred dollars ($806.00) per year. The City shall continue its credit/retail account program with a retail outlet to be determined by the City. The employee will be required to use the approved City vendor for the purchases of their indentifiedidentified uniform apparel. The uniform apparel covered by this uniform allowance includes: two black Nomex shirts, two black Nomex pants, two ties, one belt with buckle, one pair of shoes, and either a work jacket or sweater.
2. Upon appointment to a position in this unit, an employee shall receive an initial issue of the following items: one dress jacket, one reconditioned hat, one name tag, year pins, two sets of collar insignias, two black Nomex shirts, two black Nomex pants, two ties, one belt, one work jacket or sweater, and one pair of shoes.
3. The following items will be provided on an "as needed" replacement basis only: dress uniform, hat, nametags, year pins, and collar insignias, upon prior approval of the Fire Chief.
4. No employee will be eligible to receive the annual uniform allotment if such employee has for any reason been absent from active uniformed service for any time in excess of one-half of the fiscal year immediately preceding the allocation. Uniform allotment shall be provided on a prorated basis for those employees.
5. For “classic” members of the CalPERS system, the parties agree that the uniform allowance is special compensation and shall be reported as such to CalPERS, to the extent legally permissible, pursuant to Title 2 CCR, Section 571(a)(5).
B. Safety Gear
The City shall provide and maintain safety items as mandated by CAL/OSHA through procedures established by the City. Included are the following items:
1. Turn-out boots, trousers, and coat 5. Safety shoes
2. Gloves and goggles 6. Flashlights
3. Helmet 7. Breathing apparatus
4. Brush jacket 8. Infectious disease protective clothing
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C. Any employee who negligently damages or loses any provided equipment or uniforms shall be subject to disciplinary action.
D. The City shall enter into a bulk-cleaning contract with a vendor(s) to be selected solely at the discretion of the City.
ARTICLE 16 - HEALTH INSURANCE
A. Medical Insurance (Active Employees)
Employees will receive insurance coverage through CalPERS under the California Public Employees’ Medical and Hospital Care Act (PEMHCA). The City’s contribution toward medical insurance under PEMHCA will be the minimum employer contribution (MEC) required by PEMHCA (in 2016 the MEC is $125/month).
B. Retiree Medical Insurance
1. Employees, who are hired into City service on or after January 1, 2016 and retire from the City, will be eligible for medical insurance provided by PEMHCA and the City will contribute the minimum employer contribution (MEC) as required under PEMHCA. For 20192022, this amount is $136 149 per month. PEMHCA CalPERS determines the amount annually and therefore, this is subject to change.
2. Individuals who were hired on or before December 31, 2015 and retire from the City will be eligible for medical insurance provided by PEMHCA and when enrolled in PEMHCA, receive a City contribution equal to the MEC under PEMHCA. The City shall also make a contribution to a retiree Health Reimbursement Account (HRA) for the difference between the MEC and either:
a. $386 per month when the employee retires with less than twenty (20) years of service
b. $550 per month when the employee retires with twenty (20) or more years of service
C. Dental Insurance
The City will contribute up to ninety-five dollars ($95) The employee will pay any and all premiums due in excess of the City’s contribution under the City’s Cafeteria Plan (Section 125).
D. Vision Insurance Plan
The City shall provide a vision insurance plan. The City will contribute up to twenty ($20) dollars per month for the employee and eligible dependents. The employee will pay any and all premiums due in excess of the City contribution under the City’s Cafeteria Plan.
The plan design shall be: Examination every 12 months; Frames and Lenses every 24 months. Deductible shall be $10.00/exam; $20.00/frame and lenses.
E. Section 125 Cafeteria Plan
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1. The City agrees to maintain a premium conversion plan for all active unit members to provide for the pre-tax deduction of the employee’s share of premiums toward medical coverage, and when applicable, the employee’s share of premiums toward the dental plan as well as any premium payment for CalPERS Long Term Care which the employee may elect to participate in an pay through payroll deduction.
2. Effective the first full pay period starting after July 1, 2022 or Council approval of this MOU whichever is later, Effective January 1, 2020 the City’s contribution under the Section 125 Cafeteria plan for active employees shall be up to one thousand nine hundred and ninety fiveone hundred and fifty dollars ($1,9951,445) per month for employees electing to enroll in a medical plan in PEMHCA. The City’s contribution will include the PEMHCA MEC ($14936 per month for 202219) toward the medical plan and the balance may be used for other eligible expenses. Eligible expenses include: (1) medical insurance premiums, (2) dental insurance premium, (3) vision insurance premium, and cash (as set forth below). Employees will be responsible for paying the amount of the total insurance premium that exceeds the City’s contribution via the Cafeteria Plan (IRC Section 125 Plan).
3. For employees who elect to waive medical insurance from the City (opt out), the City will pay $300/month in cash to the employee. In order to receive the opt-out incentive, the employee must certify that he/she has medical insurance coverage in a plan that provides minimum essential coverage under the Affordable Care Act.
4. Specific details of this cafeteria plan will be contained in a plan document available for review by employees at the City’s Human Resources Department.
F. Affordable Care Act Reopener
The City may reopen negotiations at any time during the term of the MOU to meet and confer over impacts of the Affordable Care Act including but not limited to, consideration of the impact of the Excise Tax (commonly known as the Cadillac Tax).
G. Life Insurance - The City will provide employees covered by this MOU a term life insurance policy in the amount of $100,000.
H. Supplemental Life Insurance may be purchased by each active employee in $10,000 increments with a maximum face value of $300,000, or three times (3X) the individual’s gross salary, whichever is less Any premium cost for supplemental insurance shall be borne by the employee.
I. Long Term Disability: City paid premium for LTD as provided other management employees of the City.
ARTICLE 17 – RETIREE HEALTH SAVINGS PLAN
A. Beginning January 2020, the City has agreed to provide contributions for full-time Unit
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employees toward a Retiree Health Savings Plan (RHSP) as described in this Section.
B. The intent of the RHSP is to help participants pay eligible medical expenses during retirement using tax-deferred funds.
C. Eligible expenses include retiree health plan premiums, Medicare premiums, long-term care premiums and out of pocket health expenses.
D. The City agrees to contribute the dollar equivalent of 48 hours annually of unpaid sick time to the Unit employees RHSP account. These contributions will be made for each complete calendar month of an employee’s active City service. For example, each eligible member will receive 4 hours per month contribution equaling 48 hours annually. The employee’s annual sick leave accrual will be reduced from 144 hours annually to 96 hours annually (see Article 9, page 9).
E. Contributions to the RHSP are 100% vested.
F. Contributions and earnings on the contributions to the RHSP accumulate on a tax-free basis and are not subject to tax if they are used to pay for eligible medical expenses for participants and their eligible dependent(s).
G. Participants are allowed to self-direct all account assets into one or more of the investment options available within the RHSP.
H. The RHSP shall provide for benefits to be paid to a Unit employee after separation from City service based upon contributions made on behalf of such employee and shall not define a particular benefit to be paid to such employee.
I. Unit employees, whether active or terminated, may not transfer their RHSP account to a similar plan not sponsored by the City.
J. In the event of death, the participants account will transfer ownership to a surviving spouse or tax-qualified dependent. If the participant does not have a spouse or tax-qualified dependent, the unused assets will be forfeited back to the plan and distributed to plan participants on a pro-rated basis.
K. The RHSP will be administered by the authorized plan administrator designated by the City in a manner consistent with this Agreement. Administration fee will be paid by plan participants.
L. The City may change the RHSP at any time during the term of this Agreement, provided that the amount of contributions to the RHSP specified in Section C above do not change. Ay change shall not affect any contributions that have vested under Section C above.
ARTICLE 17 - EDUCATIONAL ENROLLMENT COST REIMBURSEMENT
Educational costs shall be limited to two thousand dollars ($2,000) annually per unit member for eligible reimbursement expenses as defined within this Article.
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The City agrees to reimburse employees for the cost of enrolling in college-level courses provided through an accredited institution, directly related to their employment, or compatible with a career goal with the City. No reimbursement shall be authorized for pursuit of an academic degree beyond a Masters nor shall reimbursement of tuition or other costs be approved for a course of study at institutions that grant credit for “life experience” in-lieu of completion of specified course material.
Enrollment cost reimbursement is subject to approval by both the Fire Chief and Director of Human Resources/Risk Management. In rendering a reimbursement determination, the Fire Chief and Director of Human Resources/Risk Management shall consider whether or not the course(s) for which reimbursement is sought is related to the employee’s then existing principal duties and the availability of funds for reimbursement purposes. No employee shall be entitled to reimbursement unless pre- course enrollment written authorization for reimbursement is received from the Fire Chief and Director of Human Resources/Risk Management. The reimbursement eligibility determinations described herein are not subject to any administrative or judicial appeal procedure and the decision of the Fire Chief and Director of Human Resources/Risk Management shall be final.
An employee will be reimbursed up to seven-five dollars ($75.00) for books each semester or equivalent if he/she is enrolled in six (6) or less units; an employee will be reimbursed up to two- hundred ($200.00) for books each semester or equivalent, providing he/she is enrolled in seven (7) or more units. Reimbursement shall only be for books required for the course. All requests for reimbursement shall be accompanied by valid receipts.
ARTICLE 18 - EDUCATIONAL INCENTIVE PAY
A. The City agrees to an Educational Pay Plan that provides compensation as follows:
1. Either:
a. $135.00 additional salary per month for an employee with an Associate of Arts degree, or
b. $275.00 additional salary per month for an employee with a Bachelor's degree in a major reasonably related to the employee's work or consistent with a career objective with the City, or
c. $325.00 additional salary per month for an employee with a Master's degree in a major reasonably related to the employee's work or consistent with a career objective with the City.
B. In addition, possession of a Company Officer Certification shall allow an employee to be compensated at $60 per month. Possession of a Chief Officer certification shall allow an employee to be compensated at $120 per month. Only certification issued by the California State Fire Marshal’s Office shall be accepted. These certifications are not cumulative compensation.
C. In addition, an employee any employee who receives Task Force Leader, Strike Team Leader and/or Executive Fire Officer designation will be eligible for an incentive of $200 per month effective upon the signing of this MOU. Effective July 1, 2020 the incentive shall increase to $250 per month. Effective January 1, 2021, the incentive shall increase to $300 per month.
D. The parties agree that this is special compensation and shall be reported as such to CalPERS, to the extent legally permissible, pursuant to Title 2 CCR, Section 571 (a)(2) – Educational Incentive Pay.
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ARTICLE 19 - TRAVEL REIMBURSEMENT
Mileage is reimbursed for travel in connection with City business. Prior approval must be obtained from the immediate supervisor or Fire Chief. Mileage forms are available in the department and, if travel is required frequently during a month, reimbursement will be made once each month.
Completed mileage forms shall be submitted to the Fire Chief.
ARTICLE 20 - RETIREMENT BENEFITS
A. Retirement benefits are provided pursuant to a contract with the California Public Employees’ Retirement System (CalPERS). For all Safety employees, the contract includes the Post Retirement Survivor option, the 1959 Survivor’s benefit – Level 4, and Military Service Credit as Public Service.
B. Employees who are “classic” members under the CalPERS regulations have the retirement formula that existed with the City on December 31, 2012, 3%@55 with single highest year for final compensation. Classic employees shall pay nine percent (9%) compensation earnable as the employee contribution to CalPERS.
C. Employees who are “new members” as defined by the California Public Employees’ Pension Reform Act of 2013 (PEPRA) (e.g., an employee hired on or after 1/1/2013 who has never been a CalPERS member or a member of a reciprocal system or who has had a break in service of at least six months or more) will have the retirement formula 2.7%@57 with a three year average for final compensation. New members contribute one-half the total normal cost as set by CalPERS each year.
D. Cost-Sharing
Classic Employees:
Employee Paid Retirement Contribution: Classic employees currently pay the nine percent (9%) member contribution. Effective the payroll period following the 2019/20 CalPERS contract amendment approval, Employees shall also pay an additional three percent (3%) retirement contribution (up to twelve percent 12%) as cost sharing pursuant to Government Code section 20516(a). In accordance with IRS Code section 414(h)(2), the cost sharing will then be treated as a pre-tax deduction.
‘New Member’ Employees:
“New Member” employees pay their one-half the total normal cost as determined by CalPERS. As of July 1, 2019, that contribution is 12.25%. Effective the payroll period following the CalPERS contract amendment approval, “new members” will contribute .5% cost sharing pursuant to Government Code section 20516(a) in addition to their one-half of the total normal cost as determined by CalPERS. In accordance with IRS Code section 414(h)(2), the cost sharing will then be treated as a pre-tax deduction.
For example, if the required PEPRA contribution is 12.25%, then “new members” will contribute 12.25% (1/2 the normal cost) and .5% as cost-sharing, for a total employee contribution of 12.75%.
The parties agree to cost-sharing of the employer retirement rate as noted above. The
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City will pursue a contract amendment with CalPERS for the cost-sharing portion of employee contributions toward retirement. The parties agree to complete the contract amendment process. Cost sharing will begin as noted above.
If, at some future date, unit members no longer agree to cost sharing, the City will simultaneously reduce the salary range for all Unit members by 3% and reduce any impacted employees’ base pay accordingly.
ARTICLE 21 - SALARIES AND WAGES
SALARY RANGES
A. Salary ranges for classifications in this unit are identified in Addendum A.
B. Effective the beginning with the first full pay period starting after July 1, 2022 or Council approval of this MOU whichever is later of the pay period following January 1, 2021 , the salary range for Division Chief will be increased by 12.5%.
C. Longevity Pay
The City will provide a monthly longevity payment of one-hundred dollars ($100) per month upon completion of twenty (20) years of continuous service. The longevity payment will increase to three- hundred fifty dollars ($350) per month upon completion of twenty-five (25) years of continuous service.
The parties agree that this is special compensation and shall be reported as such to CalPERS, to the extent legally permissible, pursuant to Title 2 CCR, Section 571 (a)(1).
D. Salary Range Advancement
Advancement within the 5-step salary range shall be subject to the terms and conditions as set forth under City policy.
E. EMT-D Premium Pay
1. Following Department of Health Services approval of the Fire Department’s AED program, individuals who are in possession of valid certification as Emergency Medical Technician – Defibrillator (EMT-D) shall receive $200.00 per month premium pay. Individuals holding an EMT- P (Paramedic) certification are not eligible for premium pay under this section
The parties agree that this is special compensation and shall be reported as such to CalPERS, to the extent legally permissible, pursuant to Title 2 CCR Section 571 (a)(2) – EMT Pay.
ARTICLE 22 - WORK SCHEDULE
The basic work schedule for employees assigned to Fire Suppression is eight 24-hour shifts in a 24- day work period which amounts to an average of 121 (122 in a leap year) work shifts per year. The
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basic work schedule for employees assigned to Fire Prevention is forty (40) hours per week.
ARTICLE 23 - ACTING/TEMPORARY ASSIGNMENTS
A. Employees assigned in an acting or temporary capacity to work in a position/class having a higher rank or salary range shall be assigned pursuant to the following provisions:
1. Employees must be certified by the City Manager or Fire Chief to work in an acting/temporary assignment capacity in said position/class. Certification for acting and/or temporary assignments shall be at the sole discretion of the City Manager or Fire Chief. The City Manager’s/Fire Chief’s determination regarding certification for acting/temporary assignments shall not be grievable and is considered to be determinative. “Certification” shall only mean that the City Manager/Fire Chief has used discretion and determined solely in his/her professional opinion that the individual is capable of performing the acting or temporary assignment. “Certification” shall not refer to any particular examination or evaluation process, and no such process shall be required for use by the City Manager/Fire Chief in rendering his/her determination.
B. Acting assignments shall be filled in the following manner (to the extent that this Article is inconsistent with the City Personnel Rules, this Article shall prevail);
C. Need for Acting/Temporary Assignments: To assure the orderly performance and continuance of municipal services, the City may be required to temporarily upgrade employees on an acting /temporary assignment basis to positions of a higher classification. For the purposes of this Article, it is understood that acting/temporary assignments may be required in order to temporarily fill position classification vacancies, which may exist for any of the following reasons:
1. A position classification is vacant and is scheduled to be filled by a regular full-time employee and a limited period of time is required in order to proceed with and complete the normal appointment procedure.
2. A position classification is vacant, although filled, because the regular employee is on an approved paid or unpaid leave of absence.
D. It is not the intent of the City to circumvent or avoid the normal employment or promotion process and therefore, the City shall make every reasonable effort, as determined by the City, to fill vacancies in a most expeditious manner and to keep the need for such acting/temporary assignments to a minimum.
E. Selection for Acting/Temporary Assignments. The selection of an employee for acting/temporary assignments shall be at the sole discretion of either the City Manager or the Fire Chief or their designee. Selection shall be pursuant to the guidelines in A1 above.
F. No person shall be appointed to an acting/temporary assignment when on probation.
Acting/temporary assignments shall be filled depending on the needs of the Fire Department as determined by the sole discretion of the City Manager or Fire Chief.
G. Status of Employee in Acting/Temporary Assignment. Time served in an acting/temporary assignment shall not be credited towards completion of any probationary test period in the
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acting/temporary assignment position. Time served in an acting/temporary assignment position shall not alter the employee’s anniversary date. If the employee in an acting/temporary assignment would have been eligible for a merit increase had the acting/temporary assignment appointment not been made, then the employee shall remain eligible for such merit increase with the employee’s performance in both the regular and acting/temporary assignment positions being considered.
H. Duration of Acting/Temporary Assignment. The duration of any acting/temporary assignment shall be in accordance with Rule IX of the Personnel System Rules and Regulations.
I. Individuals in the classification of Fire Marshal may be temporarily assigned the duties of Fire Division Chief and a Fire Division Chief may be temporarily assigned the duties of Fire Marshal if they have been certified pursuant to the provisions of this Article.
ARTICLE XX – FAIR LABOR STANDARDS ACT
A. 7K Exemption. The City of Monterey Park has exercised its ability to take statutory “7K” exemption for sworn personnel. The work period for such employees assigned to suppression positions shall be twenty-four (24) days.
B. Overtime (Fire Suppression). Hours worked by fire suppression employees in excess of the standard work period of one hundred and eighty-two (182) hours in a twenty-four (24) day cycle shall be compensated at the overtime rate of time and one-half his/her regular rate of pay.
C. In determining overtime compensation, all hours worked and hours where paid leave is used in lieu of hours worked, except sick leave, shall be counted as total hours.
ARTICLE 24 - PHYSICAL EXAMINATIONS
The City agrees to provide employees a complete physical examination, including stress EKG on the following basis:
A. Employees shall be administered a complete physical examination, including stress EKG, or be administered portions of the examination as they may be required, as follows:
1. Employees under forty years of age shall be administered a complete physical examination without the stress EKG every two years. The stress EKG will be administered every four years only.
2. Employees forty years of age or over shall be administered a complete physical examination including stress EKG every two years.
3. A City physical exam may be provided more frequently upon request of the employee and approval by the Director of Human Resources and Risk Management.
B. Employees shall be given all examinations while on duty status, or if given this examination while off-duty, shall be compensated at straight time (if employee reschedules examination to
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off duty time, no compensation will be paid).
C. The City agrees such medical examination shall review those factors and standards reasonably required to be met by an employee to substantially comply with his/her job requirements.
D. The cost of the examination shall be borne by the City.
E. The medical provider shall notify the City whether or not the employee is “medically qualified" to perform the essential functions of the position.
ARTICLE 25 – 401(a) PLAN / DEFERRED COMPENSATION PLAN
401(a) Plan
The city will amend the 401(a) plan to permit employer contribution on behalf of the unit members.
The plan amendment will be effective the payroll period following the 2019/20 CalPERS contract amendment approval and simultaneously to members picking up an additional cost sharing amount as outline in Article 20, Retirement Benefits, Section D.
A. City Contribution to a 401(a) Plan
Effective the payroll period following the 2019/20 CalPERS contract amendment approval, the City will contribute to a 401(a) Plan for all members of the bargaining unit as follows:
Tier 1: Classic members will receive 3% of regular monthly salary to the 401(a) Plan.
Tier 2: “New members” (PEPRA) will receive $185 per month to the 401(a) Plan.
A deferred compensation plan will be available to all members of the Professional Chief Officers' Association employee group. Participation in this deferred compensation plan is at the option of the individual employee.
A. B. One-Time Deferred Compensation Special 457 Catch-up Provision:
(One-Time is defined by law as an election to “catch-up” underutilized deferrals to a 457 plan, once in a singular year or multiple years, not to exceed 3 years) Federal Law allows 457 participants a one-time catch-up provision to make deferrals to “catch-up” underutilized deferrals from prior years during any or all of the three calendar years ending before the tax year they reach the plans normal retirement age. Normal retirement age for “classic” safety members of PERS is fifty-five (55) years old and fifty-seven (57) years old for “new” members of PERS. All 457 plans of an employer must have the same normal retirement age (NRA). For purposes of the deferred compensation special 457 catch-up provision for the City of Monterey Park, the normal retirement age range shall be considered 51 thru 62 years old.
The intent of this section is to facilitate association members in the final three (3) years prior to their stated retirement date in converting the hourly rate of accrued compensable leave to monies into their contribution to one of the City’s deferred compensation providers in accordance with IRS regulations/Federal Law. After an employee defers compensable accrued leave, balances of 120 hours must remain or be maintained in both their sick and vacation accrual banks. If an employee defers compensable leave from a bank that has a formula of
24 LCW_DMS\MO110\171\10098704.v1-6/5/22
payout at retirement (i.e. 50% sick leave at retirement) the deferral does not recalculate the remaining balance. All sick leave hours, per MOU provisions, will be on a fifty percent basis (i.e. a conversion of 100 hours will result in the salary equivalent to 50 hours being deposited into the employees deferred compensation account). In the final three (3) years prior to an employee’s stated retirement date he/she may convert the hourly rate of accrued compensable leave to monies into be included in their contribution to one of the City’s deferred compensation providers in accordance with IRS regulations and the schedule outlined below:
3-year Catch-up Plan
1st year: no more than 30% of compensable accrual time of Sick Leave, Vacation Leave and Holiday Leave as allowed by Federal Law.
2nd Year: If a second year is chosen, no more than 45% of compensable leave may be deferred.
3rd Year: If a third year is chosen, no more than 60% of compensable leave may be deferred.
The City is not a party to and accepts no responsibility for the employees obligations under federal law to comply with the IRS and legal requirements of such deferrals allowing 457 participants a one-time catch-up provision to make deferrals to “catch-up” underutilized deferrals from prior years during any or all of the three calendar years ending before the tax year they reach the plans normal retirement age.
ARTICLE 26 - SPECIAL MANAGEMENT COMPENSATION PAY
A. Compensatory Time - All accrued compensatory time in excess of forty-eight (48) hours will be converted from accrued time and paid as cash as of December 1 of each year. The remaining balance will remain on the books until such time as the employee utilizes the compensatory time.
In lieu of receiving cash payment for hours worked in excess of regularly scheduled shifts, .an employee may elect the option of accruing compensatory time off. Compensatory time shall be earned at straight time for each hour worked.
ARTICLE 27 - WRITTEN NOTICES TO RECOGNIZED EMPLOYEE ORGANIZATION
Reasonable written notice will be given to PCOA of any rule, ordinance, resolution or regulation directly relating to matters within the scope of representation proposed to be adopted by the City Council. In cases where the City determines that as a result of an emergency an ordinance, rule, resolution or regulation must be adopted immediately without prior notice or meetings with PCOA, the City shall provide such notice and opportunity to meet at the earliest practical time following the adoption of such ordinance, rule, resolution or regulation.
PCOA shall be deemed to have met and conferred and agreed to any matter within fifteen calendar days after hand delivery of the notice by the City to the on-duty Division Chief regarding said matter and the employee organization fails to deliver to the City Manager a written request for a meeting.
ARTICLE 28 - GENERAL PROVISIONS
A. If any section, subsection, subdivision, sentence, clause or phrase of the MOU is for any
25 LCW_DMS\MO110\171\10098704.v1-6/5/22
reason held to be illegal or unconstitutional, such decision shall not affect the validity of the remaining portions of this MOU.
B. This MOU shall not in any way interfere with the obligation of the parties hereto to comply with State and Federal laws, or with any rule, regulation, or order issued by such government authority pertaining to matters covered herein. If any provision, or provisions, of this MOU shall be affected by State or Federal laws, or of any rule, regulation, or order issued by such governmental authority, or if any provision, or provisions, should be held invalid by a court of record, the remainder of the MOU shall not be otherwise affected thereby.
C. The parties acknowledge that during the meeting and conferring in good faith which resulted in this MOU, each had the unlimited right and opportunity to make demands and proposals with respect to any and all subjects or matters not removed by law from the area of meeting and conferring, and that the understanding and agreement arrived at by the parties after the exercise of that right and opportunity is set forth in the MOU. Therefore, the City and PCOA, for the term of this MOU, each voluntarily unqualifiedly waives the right and each agrees that the other party shall not be obligated to meet and confer with respect to any subject or matter referred to or covered in this MOU even though such subjects or matters may not have been within the knowledge or contemplation of either or both of the parties at the time they met and conferred or signed this MOU, unless otherwise provided for herein or if the parties mutually agree to meet and confer on a matter subject to negotiations.
D. It is agreed that neither PCOA nor the City shall discriminate against any employee because of race, religion, national origin, age, gender, disability, sexual orientation, marital status, or political/union membership or activity.
ARTICLE 29 - TERM OF MEMORANDUM OF UNDERSTANDING
This Memorandum of Understanding shall be in effect for an initial term commencing July 1, 202218 and ending June 30, 202 32, and shall continue in effect from year-to-year thereafter unless or until terminated.
ARTICLE 30 - MODIFIED DUTY ELIGIBILITY
Subject to the one exception described below, modified duty shall be made available, on a temporary basis, only to those individuals suffering an industrial injury. The only exception to this rule shall be that non-industrial disabilities related to pregnancy, shall result in the subject employee being eligible for modified duty.
ARTICLE 31 - INDUSTRIAL DISABILITY RETIREMENT
The City may request a disability retirement on behalf of an employee as permitted under the law.
ARTICLE 32 - SICK LEAVE USE IN CONJUNCTION WITH IOD
Government Code Section 21163 provides in pertinent part that the retirement of a PERS member who has been granted or is entitled to leave, shall not become effective until the expiration of sick leave with compensation, unless the member applies for or consents to his or her retirement as of an earlier date, or unless, with respect to sick leave, the provisions of a local ordinance or resolution or the rules or regulations of the employer provide to the contrary. In this regard, it is acknowledged
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that with regard to service and non-industrial disability retirements, it is the rule and regulation of the City that no employee shall be entitled to use or receive cash distribution of sick leave on or after the effective date of said retirements and that any such retirement shall be made effective regardless of the employee having sick leave remaining in the employee's account. Additionally, it is acknowledged that with regards to individuals suffering from an industrial disability and/or being granted an industrial disability retirement that the following sick leave rules and regulations shall apply:
A. In any instance where the local safety member has exhausted eligibility for benefits pursuant to Labor Code Section 4850, but is not eligible for disability retirement at said time yet remains incapacitated from performance of the essential duties of the employee's position, then the employee shall have the option of electing to receive 50 percent of the sick leave balance existing at the time of exhaustion of the Labor Code Section 4850 benefits, which said amounts to be distributed during each payroll period until said 50 percent amount has been exhausted. In no case shall any such distribution during one pay period exceed the gross salary to which the employee would otherwise be entitled during said pay period.
B. However, if said employee is eligible for an industrial disability retirement prior to exhaustion of benefits under Labor Code Section 4850 or simultaneous with the same, and still has sick leave remaining on account, then the retirement shall still become effective and the safety employee shall be provided a one-time cash distribution equivalent to 50 percent of the employee's sick leave balance as it existed on the effective date of the industrial disability retirement. Further, said employee shall then be paid the cash value of accumulated vacation, holiday, and compensatory time.
ARTICLE 33 - FMLA/CFRA COMPLIANCE AND LEAVE POLICY
The City's Administrative Policies shall reflect FMLA and CFRA leave requirements.
ARTICLE 34 - CITY COUNCIL APPROVAL
It is, however, the mutual understanding of all parties hereto that this Memorandum of Understanding is of no force or affect whatsoever unless or until ratified and approved by minute action duly adopted by the City Council of the City of Monterey Park.
IN WITNESS HEREOF, the parties hereto have caused this Memorandum of Understanding to be executed this 15th day of June, 20222nd day of October, 2019.
MONTEREY PARK PROFESSIONAL CITY OF MONTEREY PARK
CHIEF OFFICERS' ASSOCIATION
By: _____________________________ By: _______________________________ Mark KhailMatthew Hallock Ronald Bow
Division Chief City Manager
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By: _____________________________ By: _______________________________ L. Christopher ThompsonMark Khail Inez AlvarezThomas J. Cody, Director Division Chief Assistant City Manager Human Resources & Risk Management
By: _____________________________ By:
Ryan WeddleKen Leasure Martha Garcia
Division Chief Director of Management Services
By:
Christine Tomikawa
Director of Human Resources & Risk Mgmt
28 LCW_DMS\MO110\171\10098704.v1-6/5/22
ADDENDUM A
Division Chief
Range Step 1 Step 2 Step 3 Step 4 Step 5
4 $10,77410,407
$11,32010,934
$11,89211,487
$12,49412,068
$13,11812,671
Effective the first payroll cycle after July 1, 2022January 1, 2021 the salary for Division Chief shall increase by 1%2.5%.
Division Chief
Range Step 1 Step 2 Step 3 Step 4 Step 5
4 $10,667
$11,207
$11,774
$12,370
$12,988
ADDENDUM B
Essential Worker Premium Pay – The City shall make a one-time non-PERSable lump sum payment of $4,500 to each bargaining unit member who was employed by the City in a classification in this unit prior to March 31, 2021 and is still employed by the City in a classification in this unit on the date of distribution. This payment shall be distributed with the first payroll distribution after July 1, 2022 or after Council adoption of this MOU, whichever is later.
This payment shall be subject to all applicable tax withholding.
Limited Me-too/Parity Provision: If another City safety association (POA, Fire, Police Captains or Police Mid-management) associations receives an Essential Worker Premium Payment in excess of $4,500 per employee within four months of City Council adoption of this MOU, the City shall provide a non-PERSable payment of the difference between the amount already paid pursuant to this Addendum B and the amount given to the employees in the other safety association. The supplemental payment shall also be subject to applicable tax withholding. In order to be eligible for the supplemental payment, the employee must be employed in a classification in this bargaining unit at the time of the supplemental distribution..
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Staff Report
June 15, 2022
ATTACHMENT 2
Proposed MOU Resolution
RESOLUTION NO. ____
A RESOLUTION APPROVING THE MEMORANDUM OF
UNDERSTANDING FOR CONTRACT YEAR 2022 -2023 BETWEEN THE
CITY OF MONTEREY PARK AND THE MONTEREY PARK
PROFESSIONAL CHIEF OFFICERS’ ASSOCIATION.
THE CITY COUNCIL RESOLVES AS FOLLOWS:
SECTION 1: City representatives, approved by the City Council, and representatives from the Monterey Park Professional Chief Officers’ Association (“MPPCOA”) met and conferred regarding wages, retirement funding, hours and the terms and conditions of employment for contract year 2022-2023.
SECTION 2: Following such negotiations, the representatives drafted a Memorandum of Understanding (“MOU”) for fiscal years 2022-23. A copy of that MOU is attached as Exhibit “A,” and is incorporated by reference.
SECTION 3: Following a vote of its membership, the MPPCOA informed the City that it accepted the MOU.
SECTION 4: After reviewing the MOU, the City Council finds that it is in the public interest to approve it effective July 1, 2022. Accordingly, the City Manager is authorized to execute the MOU in a form approved by the City Attorney.
SECTION 5: Electronic Signatures. This Resolution may be executed with electronic signatures in accordance with Government Code §16.5. Such electronic signatures will be treated in all respects as having the same effect as an original signature.
SECTION 6: Construction. This Resolution must be broadly construed to achieve the purposes stated in this Resolution. It is the City Council’s intent that the provisions of this Resolution be interpreted or implemented by the City and others in a manner that facilitates the purposes set forth in this Resolution.
SECTION 7: Severability. If any part of this Resolution or its Application is deemed invalid by a court of competent jurisdiction, the City Council intends that such invalidity will not affect the effectiveness of the remaining provisions or applications and, to this end, the provisions of this Resolution are severable.
SECTION 8: Effective Date. This Resolution will become effective immediately upon adoption.
PASSED AND ADOPTED this ____ day of _________, 20__.
____________________________
Henry Lo, Mayor
ATTEST:
________________________________
Vincent D. Chang, City Clerk
City of Monterey Park
Resolution No. _____
APPROVED AS TO FORM:
________________________________
Karl H. Berger, City Attorney
City Council Staff Report
DATE: June 15, 2022
AGENDA ITEM NO:
TO: The Honorable Mayor and City Council
FROM: Ron Bow, City Manager
SUBJECT: Resolution Declaring an Employment Emergency for the City of Monterey Park
RECOMMENDATION:
It is recommended that the City Council consider:
1. Adopting a Resolution declaring an employment emergency for the City of Monterey Park and authorizing the City Manager to take all practical actions needed to implement the efficient recruitment and retention of persons for employment; and
2. Taking such additional, related, action that may be desirable.
BACKGROUND:
Organizations in every industry across the country are currently facing unprecedented challenges trying to fill open jobs. Per the United States Chamber of Commerce, there are currently 11.4 million job openings in the U.S.—but only 6 million unemployed workers.
According to data released by the California Employment Development Department, California’s unemployment rate decreased to 4.9 % in March 2022. The March 2022 unemployment rate reached near pre-pandemic levels. The current issue in today’s labor market is the decrease in the U.S. labor force, which has occurred over the last eighteen months. The current contraction is driven primarily by retiring baby boomers. Record job openings indicate that there are ample opportunities for workers, and that labor shortages are the fundamental constraint on employment expansion.
The City of Monterey Park currently has 325 full time staff positions of which nearly 70 are currently vacant. The City is struggling to find qualified applicants . In addition to antiquated personnel rules governing civil service within Monterey Park, the City is competing with other public agencies and private employers for the same types of candidates within an ever-shrinking pool of qualified persons.
In reviewing the data from just the last six months, it is apparent that the City is losing this recruitment race. A typical time period for securing an outstanding candidate for an open Consent Calendar - 3F
Staff Report
June 15, 2022
position is taking four to six months of processing. This includes the initial recruitment; testing; interviewing; and background check. In multiple instances, the City has lost interested candidates to the private sector or other public entities simply because the person did not want to continue waiting to be appointed.
Being able to accelerate the testing and interviewing will help make the City more attractive to individuals seeking public service. Additional work is needed regarding the titles of positions; compensation; and various fringe benefits. Moreover, a significant overhaul of the City’s personnel rules is crucial to becoming more efficient in the future.
At the moment, however, the City is facing a human resources emergency that is imperiling its ability to continue providing high-quality services to the public. Currently, the City is trying to fill many essential positions, including Water Production Supervisor; Senior Water Production System Operator; Water Utility Maintenance Worker; Director of Public Works; Facilities Maintenance Supervisor; Finance Manager; Firefighter; Police Officer; Senior Accountant; and Lifeguard. These are employees who are directly responding to the public and/or essential to the smooth operation of municipal services including, for example, providing potable drinking water, and ensuring public safety.
Based upon the foregoing – and the well-documented employment crisis nationally and regionally – it is recommended that the City Council declare a local emergency as to personnel recruitment. This will allow the City Manager to (1) accelerate the testing and interview process for new employees (all candidates would continue to undergo the City’s background process); (2) after conferring with affected bargaining units, consider changing the titles of employment positions to discard outmoded descriptions and update such titles to contemporary titles; and (3) immediately commence the review, revision, and negotiation with bargaining units regarding desirable changes to the City’s personnel rules.
If adopted, the draft Resolution would declare a local employment emergency and authorize the City Manager to suspend those portions of the City’s personnel rules that are interfering with the City’s ability to secure qualified candidates. Among other things, the City Manager would be able to temporarily appoint qualified persons to positions in accordance with Monterey Park Municipal Code § 2.28.100 and contract for the services listed in MPMC § 2.28.190.
Respectfully submitted by:
Ron Bow
City Manager
Staff Report
June 15, 2022
Reviewed by:
Karl H. Berger
City Attorney
ATTACHMENT:
1. Draft Resolution
2. Article – Ryan Ansell and John P. Mullins, "COVID-19 ends longest employment recovery and expansion in CES history, causing unprecedented job losses in 2020," Monthly Labor Review, U.S. Bureau of Labor Statistics, June 2021
3. Article – Curtis Dubay, “Quantifying the Nation’s Workforce Crisis – State of American Business 2022 Update”, Unites States Chamber of Commerce, January 2022
ATTACHMENT 1
Draft Resolution
RESOLUTION NO.
A RESOLUTION ADOPTED BY THE CITY COUNCIL FOR THE CITY OF
MONTEREY PARK DECLARING THE EXISTENCE OF A LOCAL
EMERGENCY DUE TO LACK OF EMPLOYEES AND AUTHORIZING THE
CITY MANAGER TO TAKE ALL REASONABLE ACTIONS TO ACCELERATE RECRUITMENT AND RETENTION OF PUBLIC EMPLOYEES.
BE IT RESOLVED by the Council of the City of Monterey Park as follows:
SECTION 1: The City Council finds as follows:
A. Since the City Council officially terminated the COVID-19 local emergency in April, the City took ambituous actions to restore pre-pandemic levels of municipal services;
B. In reviewing personnel data from just the last six months, however, it is apparent that the City is seriously short-staffed.
C. The City of Monterey Park has 325 full time staff positions of which nearly 70 are currently vacant. Of these positions, multiple are critical to protecting public health and safety including, without limitation, Water Production Supervisor; Senior Water Production System Operator; Water Utility Maintenance Worker; Director of Public Works; Facilities Maintenance Supervisor; Finance Manager; Firefighter; Police Officer; Senior Accountant; and Lifeguard;
D. These are positions that directly respond to the public and/or essential to the smooth operation of municipal services including, for example, providing potable drinking water, and ensuring public safety;
E. The City Council notes that multiple sources of publicly available information (see, e.g., “Quantifying the Nation’s Workforce Crisis – State of American Business 2022 Update” [January 10, 2022] published by the United States Chamber of Commerce [www.uschamber.com/workforce/quantifying-the- nations-workforce-crisis-2022-state-of-american-business-update] and “COVID- 19 ends longest employment recovery and expansion in CES history, causing unprecedented job losses in 2020” June 2021 by the United States Bureau of Labor Statistics [www.bls.gov/opub/mlr/2021/article/covid-19-ends-longest- employment-expansion-in-ces-history.htm]) demonstrate that the challenges for recruiting qualified employees is nationwide;
F. Because of the City’s personnel rules and policies, however, a typical time period for securing an outstanding candidate for an open employee position is taking four to six months of processing. This includes the initial recruitment; testing; interviewing; and background check;
Resolution No.
G. In multiple instances, the City has lost interested candidates to the private sector or other public entities simply because the person did not want to continue waiting to be appointed;
H. Being able to accelerate the testing and interviewing will help make the City more attractive to individuals seeking public service. Additional work is needed regarding the titles of positions; compensation; and various fringe benefits. Moreover, a significant overhaul of the City’s personnel rules is crucial to becoming more efficient in the future;
I. In the interim, however, it is in the public interest to cut through the proverbial “red tape” in order to fill positions that are critical to providing municipal services to the public. Under these circumstances, it is apparent that there is an imminent threat to public health and safety that may result from the City’s inability to fill crucial positions in a timely and efficient manner; J. Consequently, a local employment emergency is declared and the City Manager is authorized to take the actions set forth in this Resolution.
SECTION 2: Authorizations. The City Manager is authorized to take all reasonable and practicable actions to accelerate the process for recruiting, appointing, and retaining persons as City employees to fill all vacant positions. Such actions may include, without limitation, the following:
A. Suspend those portions of the City’s personnel rules that are interfering with the City’s ability to secure qualified candidates. For example, unnecessary testing and interview panels;
B. Temporarily appoint qualified persons to positions in accordance with Monterey Park Municipal Code (“MPMC”) § 2.28.100;
C. Execute agreements, in a form approved by the City Attorney, for the services listed in MPMC § 2.28.190;
D. Consider amendments to titles and classifications of various positions to make them more attractive to qualified candidates;
E. Consider compensation and benefits that will attract qualified candidates to public services; and
F. Commence a substantial overhaul to the City’s personnel rules.
SECTION 3: During the existence of this local emergency, the powers, functions, and duties of the City Manager and the emergency organization of this City will be those prescribed by California law, by ordinance, and resolutions of this City approved by the
Resolution No.
City Council. To the extent that the actions authorized by this Resolution require a meet and confer with the City’s bargaining units, those meetings will be held at the earliest practicable time pursuant to Government Code § 3504.5(b).
SECTION 4: The City Manager is designated as the authorized representative for public assistance and as the authorized representative for individual assistance of the City of Monterey Park for the purpose of receiving, processing, and coordinating all inquiries and requirements necessary to obtain available state and federal assistance.
SECTION 5: This local emergency will be reviewed by the City Council within 60 days in accordance with Government Code § 8630 to determine whether it should be extended by City Council Resolution.
SECTION 6: This Resolution may be executed with electronic signatures in accordance with Government Code §16.5. Such electronic signatures will be treated in all respects as having the same effect as an original signature.
SECTION 7: This Resolution will take effect immediately upon adopt ion.
PASSED AND ADOPTED this ___ day of June, 2022.
________________________________
Henry Lo, Mayor
ATTEST:
____________________________
Vincent D. Chang, City Clerk
APPROVED AS TO FORM:
____________________________
Karl H. Berger, City Attorney
ATTACHMENT 2
Article – Ryan Ansell and John P. Mullins,
"COVID-19 ends longest employment recovery
and expansion in CES history, causing
unprecedented job losses in 2020"
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Quantifying the Nation’s
Workforce Crisis – State of
American Business 2022 Update
We examine the current state of the American workforce and the monumental challenges employers are facing across the country.
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We hear every day from our member companies—of every size and industry, across nearly every state—as we move into 2022, they’re still facing unprecedented challenges trying to find enough workers to fill open jobs.
But just how widespread is this problem? And how do we begin to address this national economic crisis and put more Americans back to work? That’s what we set out to discover. By analyzing more than two decades worth of federal jobs and employment data and conducting surveys of top industry association economists and state and local chamber leaders across the country, we examined the current state of the American workforce and the monumental challenges employers are facing across the country.
Here’s what we learned.
Executive Summary and Key Findings
The most critical and widespread challenge facing businesses is the inability to hire qualified workers for open jobs they need to fill. When businesses do not have enough employees, they are forced to turn down work, reduce hours, scale back their operations, and in the worst cases, permanently close. The latest data and surveys reveal a national economic crisis that is getting steadily worse.
There were 10.6 million vacant job openings in the United States—a record high—at the end of November 2021, the latest month for which data is available. Employers added an astounding 3.8 million job openings in 2021.
There are fewer than one available worker for every job opening (0.76 available workers/opening). This is the lowest the ratio has ever been, and it has only been less than one seven times since 2000, and five of those times were the last five months. The historical average, for context, is 2.7.
And the ratio continues to fall.
94 percent of state and local chambers say businesses in their area are finding it difficult or very difficult to find workers. Almost all industry association economists say employers in their sectors struggle to find qualified workers for open jobs.
Macroeconomic Insights
In December, the Bureau of Labor Statistics (BLS) jobs report fell well below expectations.
Businesses only created 199,000 jobs when most analysts expected closer to 500,000. Even with 6.4 million unemployed at the beginning of December, Americans’ reluctance to return to work and fill open positions was one reason for the lackluster job creation. Another could be that employees know just how easy it is to get a new job – the percent and level of workers quitting their jobs are at all-time highs and have been for months.
BLS also reported 10.6 million job openings in the economy as of the end of November – near the 11 million all-time high set in July. In 2021, employers added 3.8 million job openings. Clearly, businesses are hiring – if only there were workers ready, able, and willing to fill their open positions.
The Worker Shortage Index (WSI) measures the number of available workers divided by job openings. More specifically, it compares (1) “available Workers” (persons who want a job and are available to work now) as reported in the monthly BLS Employment Situation Report household survey of individuals to (2) employers’ job openings as reported in the BLS Job Openings and Labor Turnover Survey (JOLTS).
The national Worker Shortage Index has fallen precipitously in recent months. There is now fewer than one available worker for every open job across the country. That’s the lowest the ratio has been since the data started in 2000 and well below the 2.7 historical average.
Hardest Hit States
While nearly all states face worker shortages, the data suggest that the challenge is particularly acute in several hard-hit states.
Thirty-three states have an index number (or WSI) below one, meaning jobs are more prevalent than potential workers in that industry.
The circumstances are most challenging for employers in Nebraska, Utah, Vermont, Georgia, and New Hampshire, where the total jobs available greatly outnumber the total available workers to fill them.
Local Chamber and Industry Association Survey
In December 2021, the U.S. Chamber of Commerce surveyed state and local chamber leaders about the state of the economy and the workforce challenges in their area—and the results are striking.
Ninety-four percent reported businesses are finding it “difficult” or “very difficult” for employers in their community or state to hire workers. Seventy- eight percent of respondents said the lack of available workers impacts the economy in their area the most.
A slim majority of respondents, 51 percent, say the economy in their area is “strong” or “very strong.” While more than 47 percent say the economy is “moderate.”
Economists from trade associations are a bit more optimistic about their sectors, with 71 percent saying their industry is “strong” or “very strong” and just 23 percent saying it is “moderate.”
In 2021, the U.S. economy rebounded strongly from a tumultuous 2020.
After contracting 3.4% in 2020, the economy likely grew around 6% in 2021.
The fourth-quarter numbers are not in yet, but expectations are for strong quarterly growth.
Early 2022 will likely see strong economic conditions continue, although the rise in cases because of Omicron complicates projections at this time.
Nevertheless, even with the pandemic surging, inflation concerns, supply chain bottlenecks, and worker shortages, growth should remain strong in 2022. We are estimating over 4% growth for the year.
Despite the overall encouraging outlook right now, not all industries are faring the same, some are doing much better, and others are still struggling to rebound from COVID-19.
A more detailed explanation of the state of each of these industries is available in the sidebar menu.
Conclusion
Keeping our economy growing requires that we fill the jobs of today—and tomorrow. To do so, we need to remove barriers that prevent people from entering the workforce, get individuals the skills they need for the open positions, and enact sensible immigration policy.
If business and government work together to grow our workforce, we can once again build a vibrant, prosperous nation and lead the world economy for years to come.
The U.S. Chamber launched the
America Works Initiative to help employers
develop and hire the talent they need to succeed, build an American workforce that’s prepared for the jobs of today and tomorrow, and unleash America’s economic potential and long-term competitiveness.
The worker shortage is real—and
it’s getting worse by the day .
- U.S. Chamber President and CEO Suzanne Clark
About the authors
Curtis Dubay
Chief Economist, U.S Chamber of Commerce
Curtis Dubay is Chief Economist, Economic Policy Division at the U.S.
Chamber of Commerce. He heads the Chamber’s research on the U.S. and global economies.
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Curtis Dubay Chief
Economist, U.S Chamber
of Commerce
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January 10, 2022
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ARTICLE
JUNE 2021
COVID-19 ends longest employment recovery and expansion in CES history, causing unprecedented job losses in 2020
In March and April 2020, the longest employment recovery and expansion in U.S. history abruptly ended, with total nonfarm employment falling sharply because of the coronavirus disease 2019 (COVID-19) pandemic and the efforts to contain it. Job losses were historic and widespread. Although state and local government restrictions on businesses and individuals began to ease somewhat after April 2020, total nonfarm employment ended the year 10.0 million below its February peak.
According to data from the U.S. Bureau of Labor Statistics (BLS) Current Employment Statistics (CES) survey, nonfarm payroll employment in the United States declined by 9.4 million in 2020, 1 the largest calendar-year
decline in the history of the CES employment series.2 (See chart 1.) As with virtually all economic activity in 2020, this decline was due to the coronavirus disease 2019 (COVID-19) pandemic, including pandemic-driven social and behavioral changes and government restrictions on business activity. 3 While the job losses were
widespread, they were greatest in industries that involve people (employees, customers, or both) coming in close contact. The leisure and hospitality industry suffered the greatest job losses, but every major industry lost jobs over the year. (See charts 2 and 3.) Although 2020 can certainly be characterized as a year of extreme job loss, it also saw several months of recovery with historic job growth. In addition, the pandemic affected each industry differently, resulting in considerable variability in employment impacts.
View Chart Data
View Chart Data
View Chart Data
This article details the historic employment declines of 2020, specifically within the context of the COVID-19 pandemic. It also touches upon nonemployment data from the CES survey, including hours, earnings, and diffusion indexes, which measure the breadth of employment change across industries. The focus is on employment changes after the February 2020 peak in nonfarm payroll employment.
Historical context and employment trends
By the end of 2019, payroll employment in the United States had been growing steadily for over 9 years, marking the longest recovery and expansion in CES history. This growth continued into the start of 2020, with January and February adding a combined 604,000 jobs. At about the same time, however, news of a rapidly spreading disease was growing dire. After the first disease cases were identified in early January, their number grew rapidly.
4 On January 21, the U.S. Centers for Disease Control and Prevention (CDC) announced the first U.S. case.5 On March 11, the day the World Health Organization designated COVID-19 as a pandemic, the count of new daily cases in the United States stood at 312.6 This number would grow to the thousands within a week and exceed 22,000 by the end of the month.7
In March 2020, state and local governments began imposing restrictions in response to the pandemic, including stay-at-home orders, social distancing requirements, travel restrictions, school closures, and capacity limitations on, or complete closures of, some businesses.8 These restrictions varied from state to state and from industry to industry, as did the rigorousness of their enforcement. However, combined with a public reluctance to engage in activities requiring close human contact, the restrictions led to immediate job losses. 9 In March, nonfarm
employment fell by 1.7 million, a loss only surpassed by a 1945 employment decline that came as the country demobilized after World War II.
10 Unsurprisingly, February was designated as the month in which overall economic activity peaked, marking the beginning of an economic recession.11 In April, employment plummeted, dropping by 20.7 million—the largest decline in the history of the CES employment series, which originated in 1939.
12 Then, however, a job recovery began, with nonfarm employment growing by 2.8 million in May and by
4.8 million in June. In fact, May, June, July, and August brought the four largest monthly job gains in CES history. As COVID-19 cases surged back later in 2020 and as most state and local governments tightened restrictions in response, employment gains grew progressively smaller, and the year ended with a December employment loss.
The job loss of the 2020 recession is particularly stark when compared with losses in the previous four recessions.
13 (See chart 4.) After reaching a peak in February 2020, employment fell by a combined 22.4 million in March and April, a decline of 15 percent. By contrast, in the previous four employment downturns since 1981, job losses averaged 3 percent, with the largest decline (6 percent) occurring during the Great Recession of 2007–
09. View Chart Data
Employment of women, average hourly earnings, and average weekly hours Besides driving large movements in employment, the pandemic led to substantial volatility in three other CES data series: employment of women, average weekly hours, and average hourly earnings. In all three cases, large swings in the data were due mainly to the industry mix of employment change.
Employment of women
In 2020, employment of women fell by 5.2 million. In March and April, women’s nonfarm employment declined by 12.2 million, accounting for 55 percent of the total employment decline over this time. (See table 1.) This disproportionate decline in women employment is attributable to two factors. The first is that pandemic-related job losses were concentrated in industries with large shares of women workers. In March and April, the leisure and hospitality industry, in which women made up 53 percent of total employment, lost 8.2 million jobs, an employment decline of 49 percent. Also hard hit was the private education and health services industry, whose total employment, made up mostly of women (77 percent), fell by 2.8 million, or 12 percent. Other industries in which women constituted a large share of total employment, such as government (58 percent), other services (53 percent), retail trade (50 percent), and professional and business services (46 percent), all saw employment declines of more than a million in March and April. Industries with relatively small shares of women employees generally experienced smaller job declines over the year. The second factor responsible for employment declines among women is that, within industry groups with large proportions of women employees, job losses were disproportionately concentrated among those employees. In education and health services, for example, employment declines among women accounted for 84 percent of total employment declines in March and April.
And in leisure and hospitality—the industry with the greatest overall employment declines—women accounted for 54 percent of job losses in those 2 months. From April to December, women’s employment across industry groups grew at about the same pace as did total employment.
Table 1. Employment of women, by industry, seasonally adjusted Industry
All
employees,
February
2020
(thousands)
Women
employees as a
percent of all
employees,
February 2020
Change in all
employees,
February–April
2020
(thousands)
Change in women
employees,
February–April
2020 (thousands)
Change in women
employees as a percent of
change in all employees,
February–April 2020
Total nonfarm 152,523 50.0 -22,362 -12,205 54.6
Total private 129,688 48.7 -21,353 -11,575 54.2
Mining and
logging 690 12.9 -68 -1 1.5
Construction 7,648 13.0 -1,113 -112 10.1
Manufacturing 12,799 28.7 -1,385 -461 33.3
Wholesale
trade
5,895 30.0 -409 -157 38.4
Retail trade 15,610 49.6 -2,375 -1,423 59.9
Transportation
and
warehousing
5,823 26.1 -575 -222 38.5
Utilities 547 24.4 -4 -1 12.8
Information 2,914 39.6 -281 -105 37.4
Financial
activities 8,875 56.5 -279 -136 48.7
Professional
and business
services
21,469 45.9 -2,387 -1,198 50.2
Education and
health
services
24,565 77.4 -2,843 -2,379 83.7
Leisure and
hospitality 16,915 53.2 -8,224 -4,459 54.2
Other services 5,937 53.4 -1,410 -923 65.5
Government 22,835 57.8 -1,009 -630 62.4
Source: U.S. Bureau of Labor Statistics, Current Employment Statistics survey.
Earnings
In 2020, average hourly earnings of all private sector employees rose by $1.55, or 5.5 percent, and average hourly earnings of production and nonsupervisory employees rose by $1.31, or 5.5 percent. In both dollar and percent terms, these are the largest annual changes in CES history. 14 Over-the-year changes, however, mask
volatility in the monthly data. For example, in April, which saw the largest over-the-month earnings change during the year, the hourly earnings of all private sector employees rose by $1.33, or 4.6 percent, and the earnings of private sector production and nonsupervisory employees rose by $1.01, or 4.2 percent. These changes were largely dictated by pandemic-related employment losses.
Employment declines were the greatest in industries with low earnings. (See table 2.) The leisure and hospitality industry, whose February average hourly earnings ($16.90) were the lowest of any industry, accounted for 39 percent of the February–April decline in total private employment. Retail trade, which had the second-lowest February earnings ($20.18) accounted for an additional 11 percent of job losses over the same period. Job losses in industries whose workers have higher earnings, such as information and financial activities, made up a relatively small share of the employment decline in March and April. Because overall private earnings in the CES program are calculated as an average weighted by employment share and by industry, the removal of workers with lower earnings drove up the total private average. 15 In other words, the loss of jobs in industries
with low earnings pushes up average hourly earnings at the total private sector level.
Table 2. Employment change from February to April 2020, and February 2020 all-employee average hourly earnings, by industry, seasonally adjusted
Industry Employment change, February–April 2020
(thousands)
Average hourly earnings, February
2020
Mining and logging -68 $34.41
Construction -1,113 31.36
Manufacturing -1,385 28.23
Wholesale trade -409 31.81
Retail trade -2,375 20.18
Transportation and
warehousing -575 25.05
Utilities -4 42.42
Information -281 42.95
Financial activities -279 36.85
Professional and business
services
-2,387 34.43
Education and health services -2,843 27.90
Leisure and hospitality -8,224 16.90
Other services -1,410 25.59
Source: U.S. Bureau of Labor Statistics, Current Employment Statistics survey.
There is also evidence that job losses were concentrated among workers with low earnings. As businesses tried to adapt to the pandemic-driven economic slowdown, newer and lower earning workers were let go, with supervisors and experienced (and therefore higher paid) workers being relied upon to maintain business operations.
16 This resulted in increases in the average earnings of workers, and these increases aggregated to the topside level.
Hours
In 2020, average weekly hours of all private sector employees rose by 0.4 hour, to 34.7 hours, and average weekly hours of production and nonsupervisory employees rose by 0.7 hour, to 34.2 hours. The annual change for all private sector employees was the largest since 2010, when average weekly hours grew by the same amount. The annual change for production and nonsupervisory employees was the largest in CES history. In May, which saw the largest over-the-month change during the year, weekly hours of all private sector employees grew by 0.5 hour, while hours of private sector production and nonsupervisory employees grew by 0.6 hour.
These changes, like those for earnings, were largely dictated by pandemic-related employment changes. While employees in most industries saw an increase in their workweeks in May, the employment changes, especially those in industries with shorter workweeks, complicate monthly comparisons of average weekly hours.
Diffusion indexes
CES uses diffusion indexes as a supplementary analysis tool to measure how widespread employment changes are across industries. Rather than measuring the magnitude of employment change (i.e., the number of jobs gained or lost over time), diffusion indexes measure how many industries added or lost jobs over 1, 3, 6, and 12 months. An index value above 50 indicates that, over the relevant period, more industries are adding jobs than losing them, whereas a value below 50 indicates that more industries are losing jobs than adding them. CES produces diffusion indexes of employment for the total private sector and for manufacturing.
Diffusion indexes show that pandemic-related job losses were spread across most industries. In March 2020, the 1-month diffusion index for total private employment fell by 42.6 points, to 12.5, and in April, it fell a further 8.0 points, to 4.5—the lowest reading in the 30-year history of the time series. (See chart 5.) In March, job losses occurred in 221 of the 257 industries included in the total private diffusion index, and in April, 244 industries experienced job losses. The 1-month manufacturing index fell by 28.0 points, to 15.3, in March, and it fell a further 12.0 points, to 3.3, in April. As was the case with the index for total private employment, the April reading for manufacturing was the lowest in the history of the data series. In March, 61 of 75 manufacturing industries shed jobs, and in April, 72 manufacturing component industries lost jobs.
View Chart Data
From April to May, the total private index quickly surged back to 63.2, and the index for manufacturing rose to
69.3, reflecting the beginning of widespread job gains. For the rest of 2020, the 1-month total private index remained above 50, indicating a preponderance of job-gaining industries each month, and the 1-month manufacturing index was above 50 in all but 1 month between April and December. The 12-month diffusion index, however, paints a somewhat darker picture.
17 In December, the 12-month total private index stood at 14.6 and the manufacturing index stood at 11.3, indicating that, in 2020, job-losing industries outnumbered job- gaining industries. From December 2019 to December 2020, 219 of 257 total private industries lost jobs, with only 37 industries seeing job gains; in manufacturing, 66 of 75 industries shed jobs over this period, with only 8 seeing employment increases.
Detailed industry analysis
This section discusses CES employment changes by industry.
Leisure and hospitality
After reaching a peak in February 2020, employment in leisure and hospitality fell by 8.2 million in March and April. (See chart 6.) By the end of the year, 4.4 million of these jobs, or 54 percent, had been recovered. Leisure and hospitality’s overall job loss for 2020 was 3.7 million—the largest of any major industry group.
View Chart Data
It is unsurprising that leisure and hospitality industries were seriously affected by the pandemic. These industries include businesses such as restaurants and bars, hotels, and sports and entertainment venues. What made this industry group so susceptible to pandemic impacts is that the activities of many of its businesses involve close gatherings of people. Restaurant and bar patrons dine and drink with other patrons, and theatergoers sit next to other theatergoers. In addition, leisure and hospitality industries, especially hotels, are tightly linked to travel, an activity that was seriously curtailed by fears of COVID-19 transmission. With individuals traveling less and staying home more, hotel occupancy rates plummeted.
Within leisure and hospitality, the accommodation and food services industry lost 6.9 million jobs in the 2 months following its February employment peak. Most of this decline occurred in the industry’s largest component, food services and drinking places.
18 (See chart 7.) Restaurants and bars faced tight restrictions early in the pandemic.19 These restrictions, combined with customer reticence to visit such establishments, led to sudden and severe declines in restaurant sales, which fell by 49 percent from February to April.20 Employment in the industry fell just as fast over this period, declining by 6.0 million, or 49 percent.
View Chart Data
Job losses in food services and drinking places were greatest in full-service restaurants, in which patrons place orders and are served while seated. (See chart 8.) These types of restaurants faced wariness by customers, as well as government restrictions that imposed capacity limitations or limited sales to takeout, curbside pickup, or delivery. Employment in full-service restaurants fell by a combined 3.7 million in March and April, accounting for 70 percent of job losses in restaurants and other eating places over these 2 months. As restrictions began to ease in the late spring and summer months, full-service restaurants added 1.9 million jobs in May and June. 21 Growth continued at a lower rate through October, with the industry ending the year with employment declines in November and December. These late-year job losses coincided with a resurgence in the number of COVID-19 cases and a corresponding resumption of state and local government restrictions on restaurants.22 By the end of the year, 63 percent of the jobs lost in March and April had been recovered, but employment in full-service restaurants was still 1.4 million below its February peak.
View Chart Data
Employment in limited-service restaurants also fell sharply in March and April, declining by 1.1 million.
Although this decline—at 23 percent—was certainly large, it was much less steep than the 65-percent loss suffered by full-service restaurants. The relatively greater resilience of limited-service restaurants is largely a byproduct of their general business model. These restaurants, which include pizza and sandwich shops, takeout eating places, and fast-food and similar restaurants, had in place many systems and practices that benefitted them during the pandemic. Limited-service restaurants rely less on in-person dining and more on takeout, drive- through service, and delivery, and therefore posed less risk to customers. Most fast-food chains fared relatively well, because many of them have drive-through windows, which allow for social distancing. 23 By the end of
2020, limited-service restaurants had recovered 75 percent of their March and April job losses.
Other food service industries also experienced pandemic-related job losses. March and April saw combined job losses of 415,000 in snack and nonalcoholic beverage bars, which include businesses such as donut, bagel, and coffee shops. By the end of the year, 77 percent of these jobs had been recovered. Employment in cafeterias, grill buffets, and buffets fell by 94,000 in March and April. School and university closures eliminated much of the need for cafeteria service, and concerns about the health risks associated with dining at buffets led to their closures in much of the country.
24 About a quarter of cafeteria and buffet employment had been recovered by the end of 2020.
Employment in the accommodation industry fell by 1.0 million in March, April, and May, as travel restrictions hit this industry especially hard. The United States restricted travel for residents of many countries, and some states imposed traveler quarantine restrictions or prohibitions on domestic travel.25 Both pleasure and business travel—key revenue sources for the accommodation industry—fell in response to these restrictions, as well as out of concern for employee safety.26 According to one source, hotel occupancy rates in April 2020 fell to 25 percent, a decline of 64 percent from April 2019.27 Along with these low occupancy rates came job losses.
Occupancy rates recovered slightly throughout the remainder of the year, but they ended the year 32 percent below 2019 levels.
28 By the end of the year, accommodation had recovered only 33 percent of its pandemic- related job losses.
Within leisure and hospitality, the arts, entertainment, and recreation industry lost 1.3 million jobs in March and April. This decline was concentrated in amusements, gambling, and recreation, which lost 1.0 million jobs. This industry includes casinos, amusement parks, bowling centers and fitness clubs, and similar businesses. These industry components faced the same combination of customer reluctance and state and local government restrictions as did other public-facing industries, such as performing arts and spectator sports. Employment in this industry fell by 259,000 in March, April, and May, finishing the year 204,000 below its January 2020 level.
Government
Government employment declined by 1.3 million in 2020, a drop of 6 percent. (See chart 9.) The largest job losses occurred in March, April, and May, when employment fell by a combined 1.5 million. Driving these losses were employment declines in local government education, which lost 749,000 jobs over the same period, and local government (excluding education), which lost 514,000 jobs. (See chart 10.) View Chart Data
View Chart Data
In early 2020, education officials started to discuss closing schools, as fears of spreading COVID-19 to children through exposure in classrooms, lunchrooms, and playgrounds gripped the nation. Eventually, most states recommended the closure of school buildings for the rest of the 2019–20 academic year, and by the end of March, all U.S. public school buildings were closed.
29 This either ended the school year early or moved students to virtual learning. Along with these closures came layoffs.30 In March, April, and May, employment in local government education fell by 749,000. In June, July, and August, there were fewer layoffs than usual because workers had already been laid off as a result of the pandemic, and this led to employment gains after seasonal adjustment. Local government education continued to lose jobs for the remainder of the year, shedding 346,000 jobs from August to December, largely because of fewer hires being brought on than usual for the beginning of the 2020–21 school year. By the end of 2020, the industry had recovered only 6 percent of the jobs lost from February to May.
State government education behaved similarly to local government education, losing 255,000 jobs in March, April, and May; adding 28,000 jobs in June, July, and August; and losing 125,000 jobs in September, October, November, and December. Again, seasonally adjusted job gains over the summer reflected layoffs that had already occurred in the spring, and job losses in the fall reflected reduced hiring for the 2020–21 school year.
However, state government education did not recover any of the jobs lost in March, April, and May. 31 The education industries ended the year quite differently than they started it, with some state and local schools reopening fully, some adopting a hybrid model of in-person and virtual learning, and some remaining fully virtual.32
Over the year, federal government employment grew by 50,000, with monthly movements largely driven by the hiring and laying off of temporary workers tied to conducting the 2020 decennial census. Activities related to the census were supposed to peak in May, but they were delayed for several months, peaking in August instead, as the U.S. Census Bureau modified normal activities in order to follow pandemic guidelines. These modifications included changing when and how temporary workers would follow up with residents who failed to file their census forms on time. Over the year, hiring tied to the census accounted for 280,000 jobs between December 2019 and August 2020, but by the end of the year, 285,000 jobs were lost because of layoffs. As a result, monthly data on federal government employment were skewed by changes to the pool of temporary census workers. For example, the federal government added 256,000 jobs in August, and decennial census workers accounted for 238,000 of those gains. In all, excluding temporary workers tied to the 2020 census suggests that the federal government was one of the few industries that were not affected by the pandemic, adding an average of 4,000 jobs per month in 2020, up from 3,000 jobs added per month in 2019.
Education and health services
Employment in education and health services fell by 1.2 million in 2020. After peaking in February, employment in this industry dropped by 218,000 in March and 2.6 million in April. Prior to these losses, the largest decline in the industry had been a loss of 48,000 jobs in September 1989, and there had not been a single monthly job loss since September 2013.
Job losses were widespread across component industries, but the largest declines occurred in healthcare, 33 whose
employment fell by a combined 1.6 million in March and April. (See chart 11.) This loss was concentrated in ambulatory healthcare services, whose employment fell by 1.4 million. (See chart 12.) This industry includes offices of physicians, dentists, home healthcare providers, and other healthcare practitioners. On March 18, the Centers for Medicare and Medicaid Services—the federal agency that administers Medicare—recommended that elective and nonemergency procedures be deferred in order to preserve protective equipment for pandemic- related care.
34 Some state governments issued similar guidance, and others specifically prohibited nonemergency care.35 In response to these recommendations and restrictions, and to protect themselves and their employees, healthcare practitioners began to cancel nonemergency, elective medical procedures. In addition, state-issued stay-at-home orders further kept patients away from medical offices. Together, these factors led to steep declines in office visits, and these declines were followed by job cuts.36 In April and May, however, 30 states relaxed guidance or began eliminating restrictions on elective and nonemergency care.37 Patient visits to ambulatory care facilities began to rebound and, according to one survey, had recovered to prepandemic levels by October.38 Employment also began to grow, with ambulatory healthcare services recovering 1.2 million, or 87 percent, of the jobs lost in March and April by the end of 2020. Offices of dentists had an especially strong rebound and, by the end of the year, recovered 99 percent of the 555,000 jobs lost in the spring. Facing many of the same conditions as ambulatory healthcare services, hospitals lost 165,000 jobs in March, April, and May, and the industry’s employment ended the year 63,000 below its February peak. 39 View Chart Data
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Employment in social assistance declined by 701,000 in the 2 months following its peak in February 2020. The largest declines occurred in child daycare services,
40 which lost 373,000 jobs. Daycare centers were subject to a variety of state and local closure orders, capacity restrictions, and newly instituted protective equipment requirements.
41 In addition, some states approved certain daycare centers to open, but allowed them to provide services only to frontline workers.42 These measures led to enrollment declines that one source pegged at two- thirds.43 At the same time, daycare providers faced increased costs from modifying their facilities to prevent COVID-19 transmission, and by July, 18 percent of childcare centers were closed.44 By year’s end, child daycare services had recovered 54 percent of pandemic-related job losses.
Employment in individual and family services fell by 251,000 in March and April. Businesses in this industry provide nonmedical, nonresidential social assistance to children, young people, the elderly, people with disabilities, and all other individuals and families. Social-distancing requirements and funding shortfalls may have eliminated or hampered the operation of facilities such as drug-counseling centers, youth centers, and food banks.
45 State and local governments, facing falling revenue, cut back on payments to providers of individual and family services, and these providers responded with job cuts. By year’s end, this industry had recovered 52 percent of the jobs lost in March and April.
Employment in nursing and residential care facilities fell by 271,000 in 2020. Although these job losses occurred throughout the year, they were greatest in April and May, at 179,000. This industry has long faced a shortage of qualified workers and high turnover, and, with the onset of the pandemic, nursing home staff faced the new and stressful prospect of becoming infected with COVID-19 at work. One study suggests that the prospect of infection was a reasonable fear, with nursing home employees representing one of the most dangerous occupations during the pandemic.
46 In addition, as of May, a third of all deaths from COVID-19 involved residents and workers at long-term care facilities.47 These factors, along with layoffs, led to 2020 employment declines in all nursing and residential care industries. No component industry within nursing and residential care facilities recovered any of the jobs lost in March and April 2020.
Private educational services employment declined by 533,000 in the 3 months following its peak in January 2020. Within educational services, colleges and universities experienced eight monthly declines in 2020, losing 254,000 jobs by the end of the year. With campuses largely closed, and with enrollment declining, these institutions turned to layoffs to cut expenses.
48 The months of May, June, July, and August saw fewer layoffs than usual because workers had already been laid off as a result of the pandemic, and this led to employment gains in educational services (after seasonal adjustment). Educational services employment then continued to fall for the rest of the year, declining by 140,000 from August to December, largely because of fewer hires being brought on than normal for the beginning of the 2020–21 school year. By the end of 2020, educational services had recovered just 13 percent of the jobs lost in February, March, and April. 49 By the end of 2020, education and health services had recovered 54 percent of the 2.8 million jobs lost in March and April.
Professional and business services
Employment in professional and business services fell by 860,000 in 2020, with the industry losing 2.4 million jobs in March and April. (See chart 13.) Temporary help services, a component industry of administrative and waste services, accounted for 1.0 million of these job losses. (See chart 14.) Establishments in this industry supply temporary workers to business clients. Employment in temporary help services is a leading economic indicator, because, in tight business conditions, employers tend to stop using temporary help employees before laying off their own employees. In March and April, when state and local government pandemic-related restrictions led to mass business closures, the need for temporary help services declined, prompting employment declines. According to a survey conducted by the American Staffing Association, the pandemic was the primary reason for employment declines in temporary and contract staff. 50 However, when restrictions eased and
businesses began to reopen, many of these workers were rehired as businesses added telework options or optimized resources by adopting hybrid schedules.
51 By the end of the year, temporary help services had
recovered 68 percent of the jobs lost in March and April.
Thousands
Chart 1. Total nonfarm employment, seasonally adjusted, January 2010–December 2020
Jan 2010 Jan 2012 Jan 2014 Jan 2016 Jan 2018 Jan 2020
125,000
130,000
135,000
140,000
145,000
150,000
155,000
Click legend items to change data display. Hover over chart to view data.
Note: The vertical line at February 2020 represents the start of a recession, as determined by the National Bureau of Economic Research (NBER). When this chart was published, the NBER had not yet determined an endpoint for that recession.
Source: U.S. Bureau of Labor Statistics, Current Employment Statistics survey.
Thousands
Chart 2. Change in total nonfarm employment, by industry, seasonally adjusted, 2020
Leisure and hospitality
Government
Education and health services
Professional and business
services
Manufacturing
Retail trade
Other services
Wholesale trade
Information
Construction
Mining and logging
Transportation and
warehousing
Financial activities
Utilities
-4,000 -3,500 -3,000 -2,500 -2,000 -1,500 -1,000 -500 0 Hover over chart to view data.
Source: U.S. Bureau of Labor Statistics, Current Employment Statistics survey.
Percent
Chart 3. Percent change in total nonfarm employment, by industry, seasonally adjusted, February–April and April–December 2020
February–April April–December
Mining and logging
Construction
Manufacturing
Wholesale trade
Retail trade
Transportation and
warehousing
Utilities
Information
Financial activities
Professional and business
services
Education and health services
Leisure and hospitality
Other services
Government
-60 -40 -20 0 20 40 60
Click legend items to change data display. Hover over chart to view data.
Source: U.S. Bureau of Labor Statistics, Current Employment Statistics survey.
Index (February 2020 = 100)
Chart 4. Total nonfarm employment indexed to employment peak, seasonally adjusted
July 1981 June 1990 February 2001 January 2008
February 2020
-3 -2 -1 0 1 2 3 4 5 6 7 8 9 10
80 85
90 95
100
105
Click legend items to change data display. Hover over chart to view data.
Source: U.S. Bureau of Labor Statistics, Current Employment Statistics survey.
Number of months preceding or following month of employment peak Index
Chart 5. One-month diffusion index, total private and manufacturing employment, seasonally adjusted, January 2007–December 2020
Total private Manufacturing 50-point line
Jan 2007 Jan 2009 Jan 2011 Jan 2013 Jan 2015 Jan 2017 Jan 2019 0 10
20 30
40 50
60 70
80 90
100
Click legend items to change data display. Hover over chart to view data.
Note: Shaded areas represent recessions as determined by the National Bureau of Economic Research (NBER). When this chart was published, the NBER had not yet determined an endpoint for the recession that began in February 2020.
Source: U.S. Bureau of Labor Statistics, Current Employment Statistics survey.
Thousands
Chart 6. Employment in leisure and hospitality, seasonally adjusted, January 2010–December 2020
Jan 2010 Jan 2012 Jan 2014 Jan 2016 Jan 2018 Jan 2020
8,000
10,000
12,000
14,000
16,000
18,000
Click legend items to change data display. Hover over chart to view data.
Note: The vertical line at February 2020 represents the start of a recession, as determined by the National Bureau of Economic Research (NBER). When this chart was published, the NBER had not yet determined an endpoint for that recession.
Source: U.S. Bureau of Labor Statistics, Current Employment Statistics survey.
Thousands
Chart 7. Employment change in leisure and hospitality, by component industry, seasonally adjusted, February–April and April–December 2020 February–April April–December
Performing arts
and spectator
sports
Museums,
historical sites, and
similar institutions
Amusements,
gambling, and
recreation
Accommodation Food services and
drinking places
-7,500
-5,000
-2,500
0 2,500
5,000
Click legend items to change data display. Hover over chart to view data.
Source: U.S. Bureau of Labor Statistics, Current Employment Statistics survey.
Thousands
Chart 8. Employment in selected component industries of food services and drinking places, seasonally adjusted, January 2010–December 2020 Full-service restaurants Limited-service restaurants
Jan 2010 Jan 2012 Jan 2014 Jan 2016 Jan 2018 Jan 2020
1,000
2,000
3,000
4,000
5,000
6,000
Click legend items to change data display. Hover over chart to view data.
Note: The vertical line at February 2020 represents the start of a recession, as determined by the National Bureau of Economic Research (NBER). When this chart was published, the NBER had not yet determined an endpoint for that recession.
Source: U.S. Bureau of Labor Statistics, Current Employment Statistics survey.
Thousands
Chart 9. Employment in government, seasonally adjusted, January 2010–December 2020
Jan 2010 Jan 2012 Jan 2014 Jan 2016 Jan 2018 Jan 2020
21,000
21,500
22,000
22,500
23,000
23,500
Click legend items to change data display. Hover over chart to view data.
Note: The vertical line at February 2020 represents the start of a recession, as determined by the National Bureau of Economic Research (NBER). When this chart was published, the NBER had not yet determined an endpoint for that recession.
Source: U.S. Bureau of Labor Statistics, Current Employment Statistics survey.
Thousands
Chart 10. Employment change in government, by component industry, seasonally adjusted, February–May and May–December 2020
February–May May–December
Federal
government
State government
education
State government,
excluding
education
Local government
education
Local government,
excluding
education
-800
-600
-400
-200
0 200
400
Click legend items to change data display. Hover over chart to view data.
Source: U.S. Bureau of Labor Statistics, Current Employment Statistics survey.
Thousands
Chart 11. Employment in healthcare, seasonally adjusted, January 2010–December 2020
Jan 2010 Jan 2012 Jan 2014 Jan 2016 Jan 2018 Jan 2020
13,000
14,000
15,000
16,000
17,000
Click legend items to change data display. Hover over chart to view data.
Note: The vertical line at February 2020 represents the start of a recession, as determined by the National Bureau of Economic Research (NBER). When this chart was published, the NBER had not yet determined an endpoint for that recession.
Source: U.S. Bureau of Labor Statistics, Current Employment Statistics survey.
Thousands
Chart 12. Employment change in healthcare, by component industry, seasonally adjusted, February–April and April–December 2020
February–April April–December
Ambulatory
healthcare
services
Offices of
physicians
Offices of
dentists
Outpatient
care centers
Home
healthcare
services
Hospitals Nursing and
residential
care facilities
-1,500
-1,000
-500
0 500
1,000
1,500
Click legend items to change data display. Hover over chart to view data.
Source: U.S. Bureau of Labor Statistics, Current Employment Statistics survey.
Thousands
Chart 13. Employment in professional and business services, seasonally adjusted, January 2010–December 2020
21,000
22,000
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ABOUT THE AUTHOR
Ryan Ansell
[email protected]
Ryan Ansell is an economist in the Office of
Employment and Unemployment Statistics, U.S.
Bureau of Labor Statistics.
John P. Mullins
[email protected]
John P. Mullins is an economist in the Office of
Employment and Unemployment Statistics, U.S.
Bureau of Labor Statistics.
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4 HOME SUBJECTS DATA TOOLS PUBLICATIONS ECONOMIC RELEASES CLASSROOM BETA
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Services to buildings and dwellings lost 273,000 jobs over March and April. Establishments in this industry provide services that include the exterior cleaning of buildings, swimming pool cleaning, housekeeping and washroom sanitation services, and drain and gutter cleaning. Like temporary help services, services to buildings and dwellings experienced employment declines and gains closely tied to the implementation and easing of pandemic-related restrictions. By the end of the year, the industry had recovered 77 percent of the jobs lost in March and April.
Elsewhere in professional and business services, professional and technical services lost 545,000 jobs in March and April. Within professional and technical services, accounting and bookkeeping services lost 61,000 jobs, architectural and engineering services lost 69,000 jobs, computer systems design and related services lost 68,000 jobs, and management and technical consulting services lost 98,000 jobs. 52 These industries contain
establishments providing technical services within their respective industry areas. By the end of 2020, about two- thirds of the jobs lost in professional and technical services had been recovered. The share of recovered jobs in major professional and technical services component industries was 49 percent in accounting and bookkeeping services, 70 percent in architectural and engineering services, 59 percent in computer systems design and related services, and 79 percent in management and technical consulting services.
Employment in management of companies and enterprises fell by 96,000 in March and April. This industry contains establishments engaged in influencing management decisions or managing the companies or enterprises that assume organizational planning and decision-making roles. Given the widespread employment declines across industries, it is unsurprising that management of companies and enterprises experienced strong declines; with so many business closures—and with employees either being laid off or staying at home—the need for the industry’s management services inevitably declined. By the end of 2020, the industry had recovered only 23 percent of the jobs lost in March and April. Employment in all professional and business services recovered 61 percent of the jobs lost over the same period.
Manufacturing
In 2020, manufacturing employment fell by 578,000, a decline of 5 percent. (See chart 15.) At the onset of the pandemic, in March and April, employment in manufacturing fell by 1.4 million, or 11 percent, despite some manufacturing facilities being a part of the “Critical Manufacturing Sector,” one of the infrastructure sectors deemed critical by the Cybersecurity and Infrastructure Security Agency of the U.S. Department of Homeland Security.
53 View Chart Data
Manufacturing job losses were concentrated in durable goods manufacturing industries, which accounted for 68 percent of the job losses in March and April. Transportation equipment manufacturing was the durable goods industry with the greatest employment decline, losing 403,000 jobs over March and April. Most of this decline (89 percent) came in motor vehicles and parts manufacturing, which lost 360,000 jobs. This job loss coincided with a steep drop in motor vehicle production, which fell by 99 percent over the same period, as automakers largely shuttered factories.
54 (See chart 16.) These declines, however, were offset after just a few months, as production resumed and auto sales surged in late spring.55 In response to these developments, employment in motor vehicles and parts manufacturing rebounded quickly, and by the end of the year, the industry recovered 285,000, or 79 percent, of the jobs lost because of the pandemic.
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Nondurable goods employment fell by 440,000 in March and April. Although these losses were spread across component industries, the largest decline occurred in food manufacturing, which lost 111,000 jobs over this time.
The pandemic caused at least 30 meatpacking plants to temporarily close, which resulted in a 40-percent drop in pork production capacity and a 25-percent drop in beef production capacity, alarming the public about the nation’s food supply. In addition, news reports stated that tens of thousands of meatpacking workers were contracting COVID-19, with some dying from the disease, further exacerbating public concerns. 56 Employees
returned to work in food manufacturing, as 83,000, or 74 percent, of the jobs lost in March and April were recovered in the industry by the end of 2020.
Employment declines in nondurable goods manufacturing also occurred in the printing and related support activities industry, in which pandemic-related economic impacts reduced demand for printing and resulted in a loss of 78,000 jobs in March and April. Employment in plastics and rubber products manufacturing fell by 70,000 in March and April, and employment in miscellaneous nondurable goods manufacturing fell by 58,000.
Smaller employment declines were spread throughout the remaining nondurable goods manufacturing industries.
After the initial effects of the pandemic subsided, nondurable goods manufacturing employment rebounded, recovering 64 percent of its pandemic-related job losses by the end of the year. As employees returned to work in both durable and nondurable goods industries, manufacturing recovered 817,000 jobs, or 59 percent, of the jobs lost in March and April.
Retail trade
In 2020, employment in retail trade fell by 459,000, a decline of 3 percent. (See chart 17.) Retail trade had been in a period of slow employment decline even before the pandemic, losing about 8,000 jobs per month between an employment peak in January 2017 and February 2020. In March and April, however, retail trade employment plummeted, falling by 2.4 million, or 15 percent, with losses coming in all component industries. Over the same period, retail sales declined by 17 percent.
57 In terms of both sales and employment, the largest declines were in industries selling nonessential products whose purchase could easily be deferred. Among these industries were clothing and clothing accessories stores; motor vehicle and parts dealers; miscellaneous store retailers; sporting goods, hobby, book, and music stores; and furniture and home furnishings stores. In March and April, the greatest job losses occurred in clothing and clothing accessories stores, which lost 781,000 jobs, an employment decline of 61 percent. (See chart 18.) Many people, especially those working from home, deferred new clothing purchases, and, most importantly, clothing and clothing accessories stores were classified as nonessential in state shutdown orders. Over March and April, these factors led to a decline of 87 percent in retail sales at clothing and clothing accessories stores.
58 (See chart 19.) Shutdown orders were largely lifted by late spring, and although sales experienced a healthy rebound by year’s end, only 63 percent of the jobs lost in the industry were recovered by December.
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In March and April, employment in motor vehicle and parts dealers fell by 381,000, or 19 percent. This job loss coincided with a decline in total vehicle sales, which fell by 47 percent.59 (See chart 20.) Social distancing upended traditional aspects of selling vehicles, such as in-person test drives and meetings with salespersons in showrooms. In addition, automobile factory shutdowns limited inventory and led to shortages of new vehicles.
Motor vehicles and parts dealers worked to get customers back in their doors, advertising pandemic-safe sales floors or allowing fully online vehicle purchases with flexible return policies. As factories reopened, vehicle sales rebounded because of pent-up demand and an increasing preference for car ownership among urban consumers desiring social distancing and a pandemic-safe means of transportation. 60 By year’s end, vehicle sales
had rebounded by 84 percent, and motor vehicle and parts dealers had recovered 76 percent of the jobs lost in March and April.
61 View Chart Data
The other component industries of retail trade experienced variable job gains from April to December. Furniture and home furnishings stores recovered 83 percent of the jobs lost in March and April, whereas health and personal care stores recovered only 35 percent of the jobs lost in those 2 months. Some industries were able to fully recover their losses and continue to grow. For example, food and beverage stores ended 2020 with a 256- percent recovery, an unsurprising gain given that grocery stores fall within this industry group. Considered essential during state and local shutdowns—and helped by consumer avoidance of restaurants in an effort to maintain social distancing—grocery stores benefitted from considerable demand increases during the pandemic.
62 In fact, fearing scarcity amid COVID-19 lockdowns and panic buying, consumers rushed to grocery stores, causing demand to exceed supply.63 Items in high demand included meat, eggs, milk, and toilet paper.
Building material and garden supply stores added 159,000 jobs between April and December, more than 6 times the industry’s modest loss of 25,000 jobs during March and April. In fact, the industry thrived during the pandemic. Its stores were classified as essential businesses in state and local shutdowns, and they benefitted from a trend called “nesting,” whereby homebound consumers focus on renovating and upgrading their living spaces.
This trend resulted in substantial revenue gains at large building materials retailers, helping the industry weather the pandemic.
64 Overall, by the end of 2020, retail trade had recovered 81 percent of its March and April job losses.
Much attention has been paid to increases in online retail sales during the pandemic, as consumers shifted to this shopping method in order to maintain social distancing. Web, catalog, and mail-order retailers are classified in the electronic shopping and mail-order houses industry, which experienced a small employment decline early in the pandemic, followed by a robust recovery. It is important to note, however, that much of the employment change resulting from increased online sales likely is not captured in this industry. As mentioned later in this article, establishments engaged in fulfillment activities for web retailers are likely classified in the transportation and warehousing industry.
Other services
Employment in the other services industry fell by 450,000, or 8 percent, in 2020. After reaching a peak in February, employment dropped by 1.4 million, or 24 percent, in March and April. (See chart 21.) This loss was heavily concentrated in the personal and laundry services industry, whose employment fell by 884,000, or 56 percent, in March and April. These losses occurred primarily in the personal care services industry, which includes businesses such as barber shops, beauty and nail salons, and tattoo parlors. What characterizes many of these businesses is that they involve close personal contact with customers. As such, they were among the businesses most hurt by state shutdown orders, indoor capacity limits, and customer avoidance of close personal contact. In March and April, employment in barber shops and beauty salons declined by 375,000, or 82 percent, and employment in nail salons declined by 119,000, or 91 percent. (See chart 22.) Over the same time, employment declined by 122,000, or 70 percent, in other personal care services, a miscellaneous category that includes everything from tattoo parlors to massage parlors to ear piercing services. Given its scope, the personal care services industry provided services that customers seemed to miss the most at the onset of the pandemic. As a result of this consumer need, component industries in personal care services experienced the most rapid employment recovery within the other services industry.
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Employment in personal care services began to recover in May, with most component industries seeing job growth throughout the summer and into the fall. The job gains were tied to reopening guidelines issued by state and local jurisdictions, and the approaches taken by states and localities varied widely. For example, Oklahoma fully reopened personal care businesses on April 24, whereas New York City allowed those businesses to reopen at 50-percent capacity on July 6.
65 However, facing a resurgence of COVID-19 cases and a reinstitution of government restrictions in the last 2 months of the year, businesses requiring close personal contact lost jobs again because of renewed closures or capacity limitations. Despite these restrictions, by December, barber shops and beauty salons had recovered 79 percent of their March and April job losses, nails salons had recovered 92 percent, and other personal care services had recovered 77 percent.
Membership associations and organizations—the largest industry in other services—lost 279,000 jobs in March and April, an employment decline of 9 percent. These losses occurred primarily in civic and social organizations, an industry that includes charitable organizations, business associations, and trade unions. Early pandemic- related employment declines were concentrated in civic and social organizations, examples of which include fraternal lodges, social clubs, and ethnic associations. Many of these organizations operate bars and restaurants for their members and, like establishments in the leisure and hospitality industry, were affected by closure orders and general public wariness about social gatherings. In March and April, employment in civic and social organizations fell by 208,000, or 53 percent. The industry’s subsequent employment recovery lagged that of other component industries in other services. Civic and social organizations often engage in social advocacy, fundraising, and other similar activities, but their dependence on public assistance and donations makes them vulnerable to economic downturns. The industry’s employment gains began in May and lasted through October, with the last 2 months of the year seeing renewed job losses alongside a resurgence in COVID-19 cases across the United States. By the end of the year, civic and social organizations had recovered just 38 percent of the jobs lost in March and April.
Employment in the repair and maintenance industry fell by 248,000, or 18 percent, in March and April. Most of these job losses occurred in the automotive repair and maintenance industry, which lost 191,000 jobs, an employment decline of 20 percent. The general economic decline associated with the pandemic, including stay- at-home orders and business closures, drove down vehicular traffic, reduced the need for repairs related to normal wear and tear and car accidents, and caused businesses to defer routine maintenance on their vehicles. 66 However, these negative impacts proved short lived and did not have a lasting effect on employment. By the end of 2020, 79 percent of the jobs lost in the automotive repair and maintenance industry had been recovered.
Overall, by the end of the year, the other services industry was able to recover 942,000, or 67 percent, of the jobs lost in March and April.
Wholesale trade
Employment in wholesale trade fell by 409,000 in March and April, but it was down by 282,000 at the end of the year. (See chart 23.) The March and April job losses were divided among wholesale trade’s durable and nondurable goods component industries, which lost 207,000 jobs and 164,000 jobs, respectively. These losses were spread across more detailed component industries, but the greatest job loss came in the grocery and related products industry, which lost 65,000 jobs over March and April. The pandemic disrupted supply chains associated with this industry, resulting in shortages of groceries at retail establishments. 67 Supply-chain
disruptions also decreased demand for wholesalers to fulfill orders to certain sectors hit particularly hard by the pandemic, and this led to employment declines. Even as fears of contracting COVID-19 subsided for some, and as state and local government restrictions eased, only 23 percent of the jobs lost in the grocery and related products industry were recovered by the end of the year. In addition, wholesalers were affected by increased sales by businesses directly to consumers, because these sales bypassed wholesale intermediaries. 68 View Chart Data
By the end of 2020, durable goods wholesalers recovered 30 percent of their March and April job losses, while nondurable goods wholesalers recovered 39 percent. In total, wholesale trade recovered 32 percent of its March and April job losses by the end of the year.
Information
Information employment declined by 238,000, or 8 percent, in 2020. (See chart 24.) After reaching an employment peak in February, information industries shed 322,000 jobs through July, an employment decline of 11 percent. This decline was most heavily concentrated in the motion picture and sound recording industries, which lost 231,000 jobs over this period. This industry group includes businesses that produce and distribute sound recordings, as well as those which produce, distribute, and exhibit motion pictures and videos. Amid stay- at-home orders and other state and local restrictions, television and movie production was largely shut down in the early months of the pandemic. Production was canceled indefinitely for many television shows and movies, and many major production companies postponed premiere dates of already completed projects. 69 However, as
state and local restrictions eased, production resumed, and by the end of the year, motion picture and sound recording industries—as well as the entire information industry—recovered 21 percent of the jobs lost from February to July.
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Construction
Construction employment fell by 1.1 million in March and April, but by the end of 2020, it had regained all but 248,000 of these jobs. (See chart 25.) Like employment in many other industries, employment in construction was affected by state and local government efforts to contain COVID-19, as worksites shuttered or substantially reduced employment across the United States. In March and April, pandemic-driven job declines occurred in every construction component industry, with the greatest decline coming in specialty trade contractors.
Employment in this industry, which includes establishments involved in such trades as concrete pouring, plumbing, and electrical work for building construction, fell by 766,000, or 16 percent, between February and April. Construction employment is largely a function of consumer demand for new buildings, offices, or homes, and this demand was held back in March and April.
70 As the country reopened and demand returned, especially for new homes, construction recovered 78 percent of the jobs lost in March and April. Of the recovered jobs, 71 percent came in specialty trade contractors.
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One notable aspect of pandemic-related employment changes in construction was the divergence between the industry’s residential and nonresidential components during the job recovery that began in May. Although both components suffered sharp job losses in March and April, residential construction industries experienced an immediate and sustained turnaround thereafter. By year’s end, residential building construction had more than recovered the jobs lost in March and April, and residential specialty trade contractors fell just short of a complete recovery. Nonresidential component industries, on the other hand, saw a job recovery that was far less robust. (See chart 26.) Construction spending followed these employment trends, with residential construction spending growing by 30 percent from May to December, after declining 9 percent from February to May, and with nonresidential construction spending falling by 5 percent from March to December, after being essentially flat in February and March.
71 Other residential construction indicators, such as housing starts and new home sales, experienced steady growth from April to December after suffering declines in February and March.72 This rebound matches growth in other housing-related industries, such as real estate and building material and garden supply stores, which were all helped by the desire of consumers to renovate or improve their homes, or to move to new homes after spending considerable time in their homes as a result of COVID-19 restrictions.
Nonresidential construction, on the other hand, largely depends on spending by businesses and governments, both of which were reluctant to invest in new construction projects because of pandemic-related uncertainty.
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Mining and logging
In 2020, mining and logging employment fell by 97,000, or 14 percent. (See chart 27.) Although employment in the industry had already been on the decline since reaching a peak in January 2019, the pandemic exacerbated the losses, with 89,000 of the jobs lost in 2020 occurring in March, April, and May. Of those jobs, 70,000 were lost in the support activities for mining industry, which contains establishments providing mining support, such as site preparation, on a contract or fee basis. Support activities for mining lost another 15,000 jobs through December. Employment in mining and logging was likely affected by fluctuations in oil prices, which fell to a low in April and then recorded gains through December.
73 The 2020 employment decline in mining and logging
came as the price of most mining commodities fell.74
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Transportation and warehousing
Transportation and warehousing employment fell by 93,000, or 2 percent, in 2020. (See chart 28.) This decline is modest in comparison with that in other industry groups, a fact due entirely to employment strength in couriers and messengers and in warehousing and storage.
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Peaking in February, transportation and warehousing employment changed little in March, but it fell by 583,000 in April and May. The details of this decline reflect common themes of the pandemic. (See chart 29.) Industries dependent on individuals being near one another experienced steep employment declines, whereas industries able to capitalize on people’s desire for social distancing were able to mitigate losses, or even thrive.
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Industries related to travel and commuting lost jobs from travel restrictions, increased telecommuting, school closures, and people’s reluctance to travel. Between January and May, employment in transit and ground passenger transportation declined by 193,000, or 39 percent. This industry group includes businesses such as privately run urban transit systems, intercity and chartered bus services, school bus services, and taxis. 75 As
employers increasingly allowed—or required—employees to work from home as much as possible, passenger traffic in transit systems fell dramatically.
76 Additionally, closures of school buildings reduced the need for school bus services, resulting in the loss of 104,000 jobs, or half of all workers on payrolls in the school and employee bus transportation industry, between January and June. Later in the year, the reopening of school buildings across the nation—usually with reduced schedules and limited capacity—led to a partial rebound in employment, with the industry recovering 44 percent of its job losses by the end of the year. 77 From May to
December, school and employee bus transportation accounted for 43,000 of the 62,000 jobs gained in transit and ground passenger transportation, which recovered 32 percent of its job losses by the end of the year.
Between January and April, air revenue passenger miles fell by 96 percent.78 (See chart 30.) The Coronavirus Aid, Relief, and Economic Security (CARES) Act, passed in March, brought some relief to the airline industry.
To prevent job loss, the act provided $25 billion in payroll support to passenger airlines in the form of partially forgivable loans. In order to receive support, airlines had to agree not to conduct involuntary furloughs of employees until September 30.
79 Despite this aid, air transportation employment fell in April, May, and June, declining by 135,000, or 26 percent. These losses were likely due to attrition and voluntary employee buyouts.
After briefly rallying in the summer, air transportation employment fell in October (immediately after the CARES Act funding expired), before trending back up through December. By the end of the year, the industry had recovered only 11 percent of its pandemic-related job losses. A related transportation industry, support activities for air transportation, followed largely the same employment trend, losing 51,000 jobs between February and June and then entering a lackluster job recovery.
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In March and April, trucking employment fell by 96,000, or 6 percent. These job losses occurred in both general freight and specialized freight trucking, but the former suffered greater losses. (See chart 31.) Establishments in general freight trucking haul a vast array of goods whose transportation requires no specialized equipment. They also may provide related support services, such as local pickup, local delivery, and sorting and terminal operations. General freight trucking lost 64,000 jobs in March, April, and May, an employment decline of 6 percent. By the end of the year, the industry had recovered 57 percent of its pandemic-driven job losses.
Employment also fell in specialized freight trucking, an industry in which businesses haul articles whose transportation is complicated by item size, weight, and other characteristics and requires the use of specialized equipment, such as dump trucks or refrigerated trailers. Establishments within this industry also haul used residential or office goods. After seeing its employment decline by 36,000, or 8 percent, in March and April, specialized freight trucking recovered 45 percent of its losses by the end of 2020. Overall, as of December, truck transportation had recovered 52 percent of the jobs lost in March and April.
Jan 2010 Jan 2012 Jan 2014 Jan 2016 Jan 2018 Jan 2020
16,000
17,000
18,000
19,000
20,000
Click legend items to change data display. Hover over chart to view data.
Note: The vertical line at February 2020 represents the start of a recession, as determined by the National Bureau of Economic Research (NBER). When this chart was published, the NBER had not yet determined an endpoint for that recession.
Source: U.S. Bureau of Labor Statistics, Current Employment Statistics survey.
Thousands
Chart 14. Employment in temporary help services, seasonally adjusted, January 2010–December 2020
Jan 2010 Jan 2012 Jan 2014 Jan 2016 Jan 2018 Jan 2020
1,500
2,000
2,500
3,000
3,500
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Note: The vertical line at February 2020 represents the start of a recession, as determined by the National Bureau of Economic Research (NBER). When this chart was published, the NBER had not yet determined an endpoint for that recession.
Source: U.S. Bureau of Labor Statistics, Current Employment Statistics survey.
Thousands
Chart 15. Employment in manufacturing, seasonally adjusted, January 2000–December 2020
Jan 2000 Jan 2003 Jan 2006 Jan 2009 Jan 2012 Jan 2015 Jan 2018 11,000
12,000
13,000
14,000
15,000
16,000
17,000
18,000
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Note: Shaded areas represent recessions as determined by the National Bureau of Economic Research (NBER). When this chart was published, the NBER had not yet determined an endpoint for the recession that began in February 2020.
Source: U.S. Bureau of Labor Statistics, Current Employment Statistics survey.
Employment change (thousands) Auto production (thousands of units) Chart 16. Over-the-month employment change in motor vehicles and parts, and domestic auto production, seasonally adjusted, January 2018–December 2020 Over-the-month employment change
Domestic auto production
Jan 2018 Jul 2018 Jan 2019 Jul 2019 Jan 2020 Jul 2020
-400
-300
-200
-100
0 100
200
300
0 50
100
150
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250
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350
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Source: U.S. Bureau of Labor Statistics, Current Employment Statistics survey; and U.S. Bureau of Economic Analysis.
Thousands
Chart 17. Over-the-month employment change in retail trade, seasonally adjusted, January 2018–December 2020
Jan 2018 Jul 2018 Jan 2019 Jul 2019 Jan 2020 Jul 2020
-2,500
-2,000
-1,500
-1,000
-500
0 500
1,000
Hover over chart to view data.
Source: U.S. Bureau of Labor Statistics, Current Employment Statistics survey.
Thousands
Chart 18. Employment change in retail trade, by component industry, seasonally adjusted, February–April and April–December 2020
February–April April–December
Motor vehicle and parts dealers
Furniture and home furnishings stores
Electronics and appliance stores
Building material and garden supply
stores
Food and beverage stores
Health and personal care stores
Gasoline stations
Clothing and clothing accessories stores
Sporting goods, hobby, book, and music
stores
Miscellaneous store retailers
Nonstore retailers
-1,000 -800 -600 -400 -200 0 200 400 600
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Source: U.S. Bureau of Labor Statistics, Current Employment Statistics survey.
Employment change (thousands) Sales (billions of dollars) Chart 19. Over-the-month employment change and retail sales in clothing and clothing accessories stores, seasonally adjusted, January 2018–December 2020 Over-the-month employment change
Retail sales
Jan 2018 Jul 2018 Jan 2019 Jul 2019 Jan 2020 Jul 2020
-800
-600
-400
-200
0 200
400
0 5
10 15
20 25
30 Click legend items to change data display. Hover over chart to view data.
Source: U.S. Bureau of Labor Statistics, Current Employment Statistics survey; and U.S. Census Bureau.
Employment change (thousands) Total vehicle sales (millions of units) Chart 20. Over-the-month employment change in motor vehicle and parts dealers, and total vehicle sales, seasonally adjusted, January 2018–December 2020 Over-the-month employment change
Total vehicle sales
Jan 2018 Jul 2018 Jan 2019 Jul 2019 Jan 2020 Jul 2020
-400
-300
-200
-100
0 100
200
0 4
8 12
16 20
24 Click legend items to change data display. Hover over chart to view data.
Source: U.S. Bureau of Labor Statistics, Current Employment Statistics survey; and U.S. Bureau of Economic Analysis.
Thousands
Chart 21. Employment in other services, seasonally adjusted, January 2010–December 2020
Jan 2010 Jan 2012 Jan 2014 Jan 2016 Jan 2018 Jan 2020
4,000
4,500
5,000
5,500
6,000
6,500
Click legend items to change data display. Hover over chart to view data.
Note: The vertical line at February 2020 represents the start of a recession, as determined by the National Bureau of Economic Research (NBER). When this chart was published, the NBER had not yet determined an endpoint for that recession.
Source: U.S. Bureau of Labor Statistics, Current Employment Statistics survey.
Index (February 2020 = 100)
Chart 22. Personal care services employment indexed to employment peak, by component industry, seasonally adjusted, November 2019–December 2020 Barber shops and beauty salons Nail salons
Other personal care services
Nov
2019
Dec
2019
Jan
2020
Feb
2020
Mar
2020
Apr
2020
May
2020
Jun
2020
Jul
2020
Aug
2020
Sep
2020
Oct
2020
Nov
2020
Dec
2020
0 20
40 60
80 100
120
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Note: The vertical line at February 2020 represents the start of a recession, as determined by the National Bureau of Economic Research (NBER). When this chart was published, the NBER had not yet determined an endpoint for that recession.
Source: U.S. Bureau of Labor Statistics, Current Employment Statistics survey.
Thousands
Chart 23. Employment in wholesale trade, seasonally adjusted, January 2010–December 2020
Jan 2010 Jan 2012 Jan 2014 Jan 2016 Jan 2018 Jan 2020
5,300
5,400
5,500
5,600
5,700
5,800
5,900
6,000
Click legend items to change data display. Hover over chart to view data.
Note: The vertical line at February 2020 represents the start of a recession, as determined by the National Bureau of Economic Research (NBER). When this chart was published, the NBER had not yet determined an endpoint for that recession.
Source: U.S. Bureau of Labor Statistics, Current Employment Statistics survey.
Thousands
Chart 24. Employment in information, seasonally adjusted, January 2010–December 2020
Jan 2010 Jan 2012 Jan 2014 Jan 2016 Jan 2018 Jan 2020
2,500
2,600
2,700
2,800
2,900
3,000
Click legend items to change data display. Hover over chart to view data.
Note: The vertical line at February 2020 represents the start of a recession, as determined by the National Bureau of Economic Research (NBER). When this chart was published, the NBER had not yet determined an endpoint for that recession.
Source: U.S. Bureau of Labor Statistics, Current Employment Statistics survey.
Thousands
Chart 25. Over-the-month employment change in construction, seasonally adjusted, January 2018–December 2020
Jan 2018 Jul 2018 Jan 2019 Jul 2019 Jan 2020 Jul 2020
-1,200
-1,000
-800
-600
-400
-200
0 200
400
600
Hover over chart to view data.
Source: U.S. Bureau of Labor Statistics, Current Employment Statistics survey.
Employment (thousands) Construction spending (billions of dollars) Chart 26. Employment in selected construction component industries and spending in residential and nonresidential construction, seasonally adjusted, January 2010–December 2020
Residential building Nonresidential building
Heavy and civil engineering construction
Residential specialty trade contractors
Nonresidential specialty trade contractors
Total residential construction spending
Total nonresidential construction spending
Jan 2010 Jan 2012 Jan 2014 Jan 2016 Jan 2018 Jan 2020
0 500
1,000
1,500
2,000
2,500
3,000
0 200
400
600
800
1,000
1,200
Click legend items to change data display. Hover over chart to view data.
Note: The vertical line at February 2020 represents the start of a recession, as determined by the National Bureau of Economic Research (NBER). When this chart was published, the NBER had not yet determined an endpoint for that recession.
Source: U.S. Bureau of Labor Statistics, Current Employment Statistics survey; and U.S. Census Bureau.
Employment (thousands) Oil price (dollars per barrel)
Chart 27. Employment in mining and logging, seasonally adjusted, and West Texas Intermediate (WTI) crude oil price, not seasonally adjusted, January 2010–December 2020
Employment WTI crude oil price
Jan 2010 Jan 2012 Jan 2014 Jan 2016 Jan 2018 Jan 2020
400
500
600
700
800
900
1,000
0 20
40 60
80 100
120
Click legend items to change data display. Hover over chart to view data.
Note: The vertical line at February 2020 represents the start of a recession, as determined by the National Bureau of Economic Research (NBER). When this chart was published, the NBER had not yet determined an endpoint for that recession.
Source: U.S. Bureau of Labor Statistics, Current Employment Statistics survey; and Federal Reserve Bank of St. Louis.
Thousands
Chart 28. Employment in transportation and warehousing, seasonally adjusted, January 2010–December 2020
Jan 2010 Jan 2012 Jan 2014 Jan 2016 Jan 2018 Jan 2020
4,000
4,500
5,000
5,500
6,000
Click legend items to change data display. Hover over chart to view data.
Note: The vertical line at February 2020 represents the start of a recession, as determined by the National Bureau of Economic Research (NBER). When this chart was published, the NBER had not yet determined an endpoint for that recession.
Source: U.S. Bureau of Labor Statistics, Current Employment Statistics survey.
Thousands
Chart 29. Employment change in transportation and warehousing, by component industry, seasonally adjusted, February–April and April–December 2020 February–April April–December
Air transportation
Rail transportation
Water transportation
Truck transportation
Transit and ground passenger
transportation
Pipeline transportation
Scenic and sightseeing transportation
Support activities for transportation
Couriers and messengers
Warehousing and storage
-200 -150 -100 -50 0 50 100 150 200
Click legend items to change data display. Hover over chart to view data.
Source: U.S. Bureau of Labor Statistics, Current Employment Statistics survey.
Employment change (thousands) Air revenue passenger miles (billions) Chart 30. Over-the-month employment change in air transportation and air revenue passenger miles, seasonally adjusted, January 2018–December 2020 Employment change
Air revenue passenger miles
Jan 2018 Jul 2018 Jan 2019 Jul 2019 Jan 2020 Jul 2020
-100
-75
-50
-25
0 25
0 20
40 60
80 100
Click legend items to change data display. Hover over chart to view data.
Source: U.S. Bureau of Labor Statistics, Current Employment Statistics survey; and U.S. Bureau of Transportation Statistics.
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The job declines and gains in trucking coincided with changes in shipping volumes. In April, the Cass Freight Index, a measure of shipping activity, fell by 15 percent.80 Another measure of trucking activity, the For-Hire Truck Tonnage Index, which measures the gross tonnage of freight, fell by 9 percent that same month.81 These declines in shipping volume were due to the near-cessation of business activity and disruptions in global supply chains.
82 However, they were short lived, and as consumers turned to online shopping, shipping volumes recovered. As a result, trucking companies began modest rehiring, although the benefits accruing to trucking from online shopping were offset, to some degree, by declines in shipping to brick-and-mortar retail establishments.
Two transportation and warehousing industries added jobs in 2020. Over the year, couriers and messengers employment grew by 167,000, or 19 percent, and warehousing and storage employment grew by 133,000, or 10 percent. The employment growth of these two industries largely offset job losses in the other transportation and warehousing component industries, especially from May to December, when transportation and warehousing recovered 429,000 jobs, or 74 percent of the jobs lost in April and May. From May to December, couriers and messengers added 108,000 jobs, and warehousing and storage added 169,000 jobs, accounting for most of transportation and warehousing’s recovery from pandemic-related losses in other industries.
Couriers and messengers employment saw only one monthly decline in the early days of the pandemic—a loss of 5,000 jobs in April. After that, the industry added an average of 18,000 jobs per month through the end of the year, well above the average monthly gain of 9,000 jobs experienced in 2019. Job gains in couriers and messengers were concentrated in the couriers and express delivery services industry, which, after losing 3,000 jobs in February, grew steadily through November. This industry includes businesses that provide air, surface, or combined-mode parcel delivery services. Consumers, eager to observe social distancing and hesitant to shop in person, increasingly turned to online shopping during the pandemic. 83 The e-commerce share of total retail sales
grew from 11 percent in the first quarter of 2020 to a high of 16 percent in the second quarter.84 (See chart 32.) The relative strength of online shopping is further confirmed by the fact that e-commerce sales grew by 32 percent in 2020, while overall retail sales grew by only 7 percent. Increases in online shopping drove up shipping volumes for courier and delivery companies, and they responded with increased hiring.
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The warehousing and storage industry also managed to benefit from increases in online sales. Initially, the pandemic did drive job losses in this industry, which lost 106,000 jobs in April, an employment decline of 8 percent. However, the industry bounced back, adding jobs in 6 of the 8 months that followed. In December, employment in warehousing and storage exceeded its March level by 77,000 jobs. Many companies commonly described as online retailers frequently operate warehouses and fulfillment centers. So, when the volume of online sales rose, warehousing and storage employment rose with it. And even warehouses not owned by large retailers likely benefitted from the increased volume of shipments.
Financial activities
The financial activities industry was among the industries whose employment was minimally affected by the pandemic, losing 58,000 jobs in 2020, an employment decline of 1 percent. (See chart 33.) Even in the early months of the pandemic, when total nonfarm employment fell by 15 percent in March and April, employment in financial activities declined by only 3 percent, a drop of 279,000 jobs. Although nearly all component industries in financial activities lost jobs over this time, the declines were primarily concentrated in rental and leasing and in real estate.
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The rental and leasing industry includes businesses engaged in renting consumer goods and equipment, as well as those leasing machinery and equipment for business operations. Employment in this industry fell by 124,000 in March and April, with about half of this decline coming in automotive equipment rental and leasing, which lost 58,000 jobs over this period and shed an additional 9,000 jobs in May. This employment loss occurred as the car rental industry suffered from a decline in both business and leisure travel. The loss was exacerbated by declining used car prices, which made selling used fleet vehicles less lucrative for automobile rental and leasing companies. One industry publication pegged the annual car rental revenue decline for 2020 at 27 percent. 85 Despite this dismal annual figure, the industry did see improvement in the second half of the year. Increased prices for used cars helped rental companies strengthen their financial position, and traveler preferences shifted toward automobile travel, which was perceived as safer than air, rail, and other forms of travel that involve close gatherings of people and provide limited opportunities for safe social distancing. 86 By the end of the year,
employment in automotive equipment rental and leasing had rebounded somewhat, recovering 34 percent of its pandemic-related job losses. In the larger component, rental and leasing services, 24 percent of pandemic-related job losses were recovered by the close of 2020.
The real estate industry includes businesses that sell, buy, rent, lease, or manage real estate, both residential and commercial, for others. Employment in this industry fell by 115,000, or 7 percent, in March and April. These losses were spread across component industries, but the largest decline was in lessors of real estate, whose employment fell by 53,000, or 9 percent, over these 2 months. Lessors of real estate’s residential and nonresidential components both suffered job losses, having to deal with the problem of tenants being unable to pay rent because of pandemic-related layoffs or cuts in their workweek. 87 Within the residential component,
establishments faced not only tenants struggling to keep up with their rent payments but also eviction prohibitions by various levels of government, finding themselves in a difficult financial situation. At the federal level, the CARES Act moratorium on evictions was in effect from March 27 to July 24, covering tenants living in “federally related properties,” a category estimated to include between 28 and 46 percent of all occupied rental units. On September 4, the CDC issued a moratorium on evictions, citing public health concerns associated with homelessness. This moratorium was initially intended to last through the end of 2020, but it has since been extended.
88 Although landlords were restrained by eviction prohibitions, they were helped by federal, state, and local government rental assistance programs, some of which allowed landlords to apply for benefits on behalf of their tenants.
89 Within lessors of real estate’s nonresidential component, lessors faced similar problems. Real estate service company Coldwell Banker Richard Ellis’s cash payments indexes, which serve as proxies for rent collections and indicators of tenants’ financial health, declined rapidly in the early days of the pandemic, with the retail sector being especially hard hit.
90 With employees largely working from home, office tenants sometimes demanded renegotiations of their leases. With few other prospective tenants, landlords often agreed.91 By the end of the year, lessors of real estate had recovered 48 percent of the jobs lost in March and April.
A related industry, real estate property managers, faced the same business conditions. Lower rent revenue led to job losses in this industry, which lost a combined 31,000 jobs in March and April, an employment decline primarily concentrated in the industry’s residential component. By the end of the year, however, employment in the property management industry had regained 91 percent of these job losses.
Employment in offices of real estate agents declined by 29,000, or 8 percent, in March and April. This industry —in which businesses buy, sell, or rent real estate on behalf of others—played a part in one of the year’s prominent economic stories. After declining early in the pandemic, existing home sales recovered by the summer of 2020 and then expanded rapidly through much of the fall. Along with increasing home sales and prices, employment in offices of real estate agents rebounded, recovering 88 percent of the March and April job losses by the end of the year.
92 Among other financial activities industries, credit intermediation and related activities lost 34,000 jobs in March and April, an employment decline of only 1 percent. By the end of the year, 95 percent of these jobs had been recovered. Examples of businesses in this industry include banks, mortgage companies, and loan brokers. The nature of work at many of these businesses is well suited to having employees work from home, allowing this industry to adapt well to the pandemic. Other finance-related industries were similarly suited for remote work and saw little employment change during the pandemic.
By the end of 2020, the financial activities industry had recovered 64 percent of its March and April job losses.
Utilities
Employment in utilities changed little for the majority of 2020.
Conclusion
In 2020, the longest nonfarm payroll employment recovery and expansion in U.S. history abruptly ended, with historic and widespread employment declines occurring in March and April. State and local government restrictions implemented to slow the spread of COVID-19, coupled with pandemic-avoidance behaviors by the public, led to these unusually large job losses. Despite recovering quickly as restrictions eased, nonfarm employment still ended the year 10.0 million below its February peak. Job losses over the year were especially large in leisure and hospitality, government, education and health services, and professional and business services. None of the major industry sectors had fully recovered by the end of 2020.
SUGGESTED CITATION:
Ryan Ansell and John P. Mullins, "COVID-19 ends longest employment recovery and expansion in CES history, causing unprecedented job losses in 2020," Monthly Labor Review, U.S. Bureau of Labor Statistics, June 2021, https://doi.org/10.21916/mlr.2021.13 Notes
1 The Current Employment Statistics (CES) program, which provides detailed industry data on employment, hours, and earnings of workers on nonfarm payrolls, is a monthly survey of about 144,000 businesses and government agencies representing approximately 697,000 individual worksites. For more information on the program’s concepts and methodology, see “Technical notes for the Current Employment Statistics survey” (U.S. Bureau of Labor Statistics), https://www.bls.gov/web/empsit/cestn.htm. To access CES data, see “Current Employment Statistics—CES (national)” (U.S. Bureau of Labor Statistics), https://www.bls.gov/ces. The CES data used in this article are seasonally adjusted unless otherwise noted.
2 The CES employment series goes back to 1939. Prior to 2020, the two next highest annual job losses occurred during the Great Recession years of 2008 and 2009, when job losses were 3.6 million and 5.1 million, respectively. Job losses in 2020 were greater than the combined losses for 2008 and 2009. 3 See Maria Nicola, Zaid Alsafi, Catrin Sohrabi, Ahmed Kerwan, Ahmed Al-Jabir, Christos Iosifidis, Maliha Agha, and Riaz Agha, “The socio-economic implications of the coronavirus pandemic (COVID-19): a review,” International Journal of Surgery, vol. 78, June 2020, pp. 185–193, https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7162753/. 4 See “Listings of WHO’s response to COVID-19” (World Health Organization, June 29, 2020), https://www.who.int/news/item/29-06-2020-covidtimeline. 5 See “First travel-related case of 2019 novel coronavirus detected in United States” (Centers for Disease Control and Prevention, January 21, 2020), https://www.cdc.gov/media/releases/2020/p0121-novel-coronavirus-travel-case.html. 6 See “WHO Director-General’s opening remarks at the media briefing on COVID-19—11 March 2020” (World Health Organization, March 11, 2020), https://www.who.int/director-general/speeches/detail/who-director-general-s- opening-remarks-at-the-media-briefing-on-covid-19---11-march-2020. 7 See “Trends in number of COVID-19 cases and deaths in the U.S. reported to CDC, by state/territory” (Centers for Disease Control and Prevention, updated daily), https://covid.cdc.gov/covid-data-tracker/#trends_dailytrendscases. 8 See “A timeline of COVID-19 developments in 2020,” American Journal of Managed Care, updated January 1, 2021, https://www.ajmc.com/view/a-timeline-of-covid19-developments-in-2020. 9 According to one study, 27 percent of people polled said they would avoid eating in restaurants. See Mark Brandau, “COVID- 19 report 2: fear and response” (Datassential, March 17, 2020), https://mcusercontent.com/45027c46b385d9b28f2d3a6d7/files/291b3e84-bd28-48a4-9f29- 6c5e43d0bc2e/Datassential_Coronavirus_3_17_20_.pdf.
10 In September 1945, employment fell by 2.0 million, accelerating ongoing job losses. September’s losses were concentrated in manufacturing and coincided with declines in industrial production. See “Industrial production: total index” (FRED, Federal Reserve Bank of St. Louis), https://fred.stlouisfed.org/series/INDPRO. 11 The National Bureau of Economic Research (NBER) Business Cycle Dating Committee is the generally recognized arbiter of business cycle turning points in the United States. The NBER defines recessions as economywide declines in economic activity lasting more than a few months that can be observed in major economic indicators, such as employment and output. Recession starting points are business cycle peaks, and recession ending points are business cycle troughs. The length and timing of the NBER-designated peaks and troughs do not necessarily align with the peaks and troughs in the CES employment series. 12 In both level and percent terms, the employment decline in April 2020 was the largest job change in CES history. 13 In each of the past four recessions, peaks in employment occurred within a month of peaks in the business cycle. 14 Hours and earnings data series for all employees originate in March 2006, and most hours and earnings data series for production and nonsupervisory employees originate in January 1964. Although production and nonsupervisory employees are defined differently for certain major industry sectors, they generally exclude workers whose primary duty is to supervise the work of others. In manufacturing and in mining and logging, production and nonsupervisory employees include only production and related employees. In construction, production and nonsupervisory employees include only construction employees, and in private service-providing industries, they include all nonsupervisory employees. 15 For an explanation of the CES aggregation procedures, see “Technical notes for the Current Employment Statistics survey” (U.S. Bureau of Labor Statistics), https://www.bls.gov/web/empsit/cestn.htm#section6d. 16 See Kim Parker, Rachel Minkin, and Jesse Bennett, “Economic fallout from COVID-19 continues to hit lower income Americans the hardest” (Washington, DC: Pew Research Center, September 24, 2020), https://www.pewresearch.org/social-trends/2020/09/24/economic-fallout-from-covid-19-continues-to-hit-lower- income-americans-the-hardest/.
17 The 12-month diffusion index is not seasonally adjusted. 18 According to nonseasonally adjusted annual average data for 2019, food services and drinking places employment made up 73 percent of total leisure and hospitality employment. 19 See Rebecca Klar, “More states close restaurants, entertainment venues amid pandemic,” The Hill, March 16, 2020, https://thehill.com/policy/healthcare/487776-new-york-new-jersey-connecticut-set-to-close-restaurants- entertainment.
20 In a national survey conducted between April 28 and May 3, 2020, 78 percent of respondents said they would not be comfortable dining in a restaurant, regardless of government restrictions. See “Washington Post–University of Maryland national poll, April 28–May 3, 2020,” The Washington Post, May 5, 2020, https://www.washingtonpost.com/context/washington- post-university-of-maryland-national-poll-april-28-may-3-2020/9ac3c026-f68c-4733-82a0-daa6862d99b3/? itid=lk_inline_manual_2; and “Retail sales: restaurants and other eating places” (FRED, Federal Reserve Bank of St. Louis), https://fred.stlouisfed.org/series/MRTSSM7225USN.
21 See Thomas Franck, “Restaurant bookings data show U.S. economy is starting to revive after Covid closures,” CNBC, May 27, 2020, https://www.cnbc.com/2020/05/27/restaurant-data-show-us-economy-is-recovering-after-covid- closures.html.
22 See “Official return to work guidelines for foodservice establishments” (Washington, DC: Restaurant Law Center, National Restaurant Association), https://restaurantlawcenter.org/archive-official-return-to-work-guidelines-for-foodservice- establishments/.
23 See Jonathan Maze, “Fast food chains are thriving, some more than others,” Restaurant Business, November 30, 2020, https://www.restaurantbusinessonline.com/financing/fast-food-chains-are-thriving-some-more-others; Heather Haddon, “McDonald’s, Chipotle and Domino’s are booming during coronavirus while your neighborhood restaurant struggles,” The Wall Street Journal, October 12, 2020,
https://www.wsj.com/articles/mcdonalds-chipotle-and-dominos-are- feasting-during-coronavirus-while-your-neighborhood-restaurant-fasts-11602302431; and David Vanamburg, “Why limited-service chains were better positioned for the pandemic than full-service restaurants” (American Customer Satisfaction Index, June 30, 2020),
https://www.acsimatters.com/2020/06/30/why-limited-service-chains-were-better- positioned-for-the-pandemic-than-full-service-restaurants/. 24 See Chris Fuhrmeister, “‘Cessation of services’: food service companies lay off hundreds due to lack of college demand,” Atlanta Business Journal, August 20, 2020, https://www.bizjournals.com/atlanta/news/2020/08/20/coronavirus- layoffs-colleges-foodservice-companies.html; and Max Matza, “Coronavirus: the slow death of the American all-you-can- eat buffet,” BBC News, July 19, 2020, https://www.bbc.com/news/world-us-canada-53410931. 25 See Madeline Holcombe, “Here are the states restricting travel from the US,” CNN, March 31, 2020, https://www.cnn.com/2020/03/31/us/states-travel-restrictions-list/index.html. 26 See Scott McCartney, “The Covid pandemic could cut business travel by 36%—permanently,” The Wall Street Journal, December 1, 2020, https://www.wsj.com/articles/the-covid-pandemic-could-cut-business-travel-by- 36permanently-11606830490?mod=article_inline.
27 See “U.S. COVID-19 travel guidelines,” VisitTheUSA.com, https://www.visittheusa.com/us-covid-19-travel- guidelines; and “STR: U.S. hotel performance for April 2020” (STR, May 20, 2020), https://str.com/press-release/str-us- hotel-performance-april-2020.
28 See “STR: U.S. hotel performance for December 2020” (STR, January 20, 2021), https://str.com/press-release/str-us- hotel-performance-december-2020.
29 See “The coronavirus spring: the historic closing of U.S. schools (a timeline),” Education Week, July 1, 2020, https://www.edweek.org/leadership/the-coronavirus-spring-the-historic-closing-of-u-s-schools-a- timeline/2020/07.
30 In the CES survey, all persons employed by an establishment are included in the estimates for the industry into which that establishment has been classified, regardless of occupation. Therefore, employment estimates for state and local government education include not only teachers but also administrators and support staff employed by a school system. 31 When state and local government education industries are experiencing large employment changes not tied to the normal seasonal hiring or laying off of workers, employment gains on a seasonally adjusted basis can be misleading. 32 See Dana Goldstein and Eliza Shapiro, “Many students will be in classrooms only part of the week this fall,” The New York Times, June 26, 2020, https://www.nytimes.com/2020/06/26/us/coronavirus-schools-reopen-fall.html; and Hristina Byrns, “Reopening schools amid COVID-19: a mix of in-person attendance, remote learning, and hybrid plans,” USA Today, August 3, 2020, https://www.usatoday.com/story/money/2020/08/03/every-states-plan-to-reopen-schools-in-the- fall/112599652/.
33 This industry is referred to as “health care” in all official CES news releases, websites, and databases, but it is referred to as “healthcare” in this article to conform to Government Printing Office publication standards. 34 See “CMS releases recommendations on adult elective surgeries, non-essential medical, surgical, and dental procedures during COVID-19 response” (Centers for Medicare and Medicaid Services, March 18, 2020), https://www.cms.gov/newsroom/press-releases/cms-releases-recommendations-adult-elective-surgeries-non- essential-medical-surgical-and-dental.
35 See “State guidance on elective surgeries” (Alexandria, VA: Ambulatory Surgery Center Association, updated April 20, 2020), https://www.ascassociation.org/asca/resourcecenter/latestnewsresourcecenter/covid-19/covid-19-state. 36 One study estimated a 40-percent decline in outpatient visits after the first week of March 2020; another showed a decline of 60 percent. See Engy Ziedan, Kosali I. Simon, and Coady Wing, “Effects of state COVID-19 closure policy on non-COVID-19 health care utilization,” Working Paper 27621 (Cambridge, MA: National Bureau of Economic Research, July 2020), https://www.nber.org/system/files/working_papers/w27621/w27621.pdf; Ateev Mehrotra, Michael Chernew, David Linetsky, Hilary Hatch, and David Cutler, “The impact of the COVID-19 pandemic on outpatient visits: a rebound emerges,” To The Point (The Commonwealth Fund, May 19, 2020),
https://www.commonwealthfund.org/publications/2020/apr/impact-covid-19-outpatient-visits; and Rita Rubin, “COVID-19’s crushing effects on medical practices, some of which may not survive,” JAMA, vol. 324, no. 4, pp. 321–323, https://jamanetwork.com/journals/jama/fullarticle/2767633. 37 See Anuja Vaidya, “30 states resuming elective surgeries,” Becker’s Hospital Review, updated May 15, 2020, https://www.beckershospitalreview.com/cardiology/11-states-resuming-elective-surgeries.html. 38 See Ateev Mehrotra, Michael Chernew, David Linetsky, Hilary Hatch, David Cutler, and Eric C. Schneider, “The impact of the COVID-19 pandemic on outpatient care: visits return to prepandemic levels, but not for all providers and patients” (The Commonwealth Fund, October 15, 2020), https://www.commonwealthfund.org/publications/2020/oct/impact-covid- 19-pandemic-outpatient-care-visits-return-prepandemic-levels. 39 See Alia Paavola, “266 hospitals furloughing workers in response to COVID-19,” Becker’s Hospital Review, updated August 31, 2020, https://www.beckershospitalreview.com/finance/49-hospitals-furloughing-workers-in-response-to- covid-19.html.
40 This industry is referred to as “child day care services” in all official CES news releases, websites, and databases, but it is referred to as “child daycare services” in this article to conform to Government Printing Office publication standards. 41 See Caroline Kitchener, “20,000 day cares may have closed in the pandemic. What happens when parents go back to work?” The Lily, February 22, 2021, https://www.thelily.com/20000-day-cares-may-have-closed-in-the-pandemic-what- happens-when-parents-go-back-to-work/.
42 See Julie Kashen, “States are stepping up with emergency child care solutions for frontline essential personnel in response to COVID-19” (The Century Foundation, April 30, 2020), https://tcf.org/content/commentary/states-stepping-emergency- child-care-solutions-frontline-essential-personnel-response-covid-19/. 43 See “Holding on until help comes: a survey reveals child care’s fight to survive” (Washington, DC: National Association for the Education of Young Children, July 13, 2020), https://www.naeyc.org/sites/default/files/globally- shared/downloads/PDFs/our-work/public-policy-
advocacy/holding_on_until_help_comes.survey_analysis_july_2020.pdf. 44 See ibid.; Ana North, “‘We are on our own’: how the coronavirus pandemic is hurting child care workers,” Vox, updated April 6, 2020, https://www.vox.com/2020/4/4/21203464/coronavirus-child-care-workers-pandemic-unemployment- cares-act; Scott MacFarlane, Rick Yarborough, and Jeff Piper, “Thousands of local child care centers closed due to COVID-19,” NBC Washington, September 1, 2020, https://www.nbcwashington.com/investigations/thousands-of-local-child-care- centers-closed-due-to-covid-19/2406310/; and Abby Vesoulis, “COVID-19 has nearly destroyed the childcare industry— and it might be too late to save it,” Time, September 8, 2020, https://time.com/5886491/covid-childcare-daycare/. 45 See “The need for social workers, during and after the COVID-19 pandemic” (Gwynedd Valley, PA: Gwynedd Mercy University, June 2, 2020), https://www.gmercyu.edu/news-and-events/news/need-social-workers-during-and-after- covid-19-pandemic.
46 See Tanya Lewis, “Nursing home workers had one of the deadliest jobs of 2020,” Scientific American, February 18, 2021, https://www.scientificamerican.com/article/nursing-home-workers-had-one-of-the-deadliest-jobs-of-2020/; Jenna Carlesso and Kasturi Pananjady, “‘They can’t continue’: nursing homes struggle to maintain staffing as COVID cases continue to rise,” CT Mirror, December 10, 2020,
https://ctmirror.org/2020/12/10/they-cant-continue-nursing-homes-struggle-to- maintain-staffing-as-covid-cases-continue-to-rise/; and Will Englund, “In a relentless pandemic, nursing-home workers are worn down and stressed out,” The Washington Post, December 3, 2020, https://www.washingtonpost.com/business/2020/12/03/nursing-home-burnout/. 47 See Sophie Quinton, “Staffing nursing homes was hard before the pandemic. Now it’s even tougher,” Fierce Healthcare, May 18, 2020, https://www.fiercehealthcare.com/hospitals-health-systems/staffing-nursing-homes-was-hard-before- pandemic-now-it-s-even-tougher.
48 See “Spring 2021 enrollment (as of March 25)” (National Student Clearinghouse Research Center, April 29, 2021), https://nscresearchcenter.org/stay-informed/; “As Covid-19 pummels budgets, colleges are resorting to layoffs and furloughs. Here’s the latest,” The Chronicle of Higher Education, May 13, 2020, https://www.chronicle.com/article/were- tracking-employees-laid-off-or-furloughed-by-colleges/; and Abigail Johnson Hess, “At least 50,904 college workers have been laid off or furloughed because of Covid-19,” CNBC Make It, July 2, 2020, https://www.cnbc.com/2020/07/02/218-colleges-have-laid-off-or-furloughed-employees-due-to-covid-19.html. 49 As was the case with government education industries, when educational services are experiencing large employment changes not tied to the normal seasonal hiring or laying off of workers, employment gains on a seasonally adjusted basis can be misleading.
50 See “Staffing jobs hit historic low amid pandemic” (Alexandria, VA: American Staffing Association, April 21, 2020), https://americanstaffing.net/posts/2020/04/21/staffing-jobs-hit-historic-low-amid-pandemic/. 51 See “Staffing jobs tick up in May” (Alexandria, VA: American Staffing Association, May 27, 2000), https://americanstaffing.net/posts/2020/05/27/staffing-jobs-tick-up-in-may/; and Stephanie Hegarty, “Staffing firms are adapting to the COVID-19 pandemic economy” (First Advantage, November 9, 2020), https://fadv.com/blog/staffing-firms- are-adapting-to-the-covid-19-pandemic-economy/.
52 See “Pandemic fallout: US tech sector sheds record number of jobs in April, CompTIA analysis reveals,” Cision PR Newswire, May 8, 2020, https://www.prnewswire.com/news-releases/pandemic-fallout-us-tech-sector-sheds-record- number-of-jobs-in-april-comptia-analysis-reveals-301055911.html; and Tekla S. Perry, “Tech jobs in the time of COVID,” IEEE Spectrum, May 5, 2020, https://spectrum.ieee.org/view-from-the-valley/at-work/tech-careers/tech- jobs-in-the-time-of-covid.
53 See “Guidance on the essential critical infrastructure workforce: ensuring community and national resilience in COVID-19 response,” version 3.0 (U.S. Department of Homeland Security, Cybersecurity and Infrastructure Security Agency, April 17, 2020),
https://www.cisa.gov/sites/default/files/publications/Version_3.0_CISA_Guidance_on_Essential_Critical_Infrastructure_Workers_1.pdf. 54 See “Domestic auto production” (FRED, Federal Reserve Bank of St. Louis), https://fred.stlouisfed.org/series/DAUPSA#0; and Michael Martinez, Hannah Lutz, and Vince Bond Jr., “Detroit 3 begin to idle North American plants,” Automotive News, March 18, 2020, https://www.autonews.com/automakers- suppliers/detroit-3-begin-idle-north-american-plants.
55 See Neal E. Boudette, “As sales rise, automakers ramp up production,” The New York Times, June 24, 2000, https://www.nytimes.com/2020/06/24/business/auto-industry-coronavirus-recovery.html. 56 See “Union opposes reopening U.S. meat plants as more workers die,” Reuters, May 8, 2020, https://www.reuters.com/article/us-health-coronavirus-usa-meat/union-opposes-reopening-u-s-meat-plants-as- more-workers-die-idUSKBN22K2WP.
57 See “Advance retail sales: retail (excluding food services)” (FRED, Federal Reserve Bank of St. Louis), https://fred.stlouisfed.org/series/RSXFS.
58 See “Advance retail sales: clothing and clothing accessory stores” (FRED, Federal Reserve Bank of St. Louis), https://fred.stlouisfed.org/series/RSCCAS.
59 See “Total vehicle sales” (FRED, Federal Reserve Bank of St. Louis), https://fred.stlouisfed.org/series/TOTALSA. 60 See “Cars.com: pandemic spurs new ways to buy and sell cars,” Cars.com, July 27, 2020, https://www.cars.com/articles/cars-com-pandemic-spurs-new-ways-to-buy-and-sell-cars-digitally-424717/. 61 See Nora Naughton, “U.S. auto sales showed signs of recovery in third quarter,” The Wall Street Journal, updated October 1, 2020, https://www.wsj.com/articles/u-s-auto-sales-show-signs-of-recovery-in-third-quarter-11601569086. 62 See Ignacio Felix, Adrian Martin, Vivek Mehta, and Curt Mueller, “Changes in consumer behavior continue to ripple through the US food and agricultural supply chains. What should companies do now?” (McKinsey & Company, July 2, 2020), https://www.mckinsey.com/industries/consumer-packaged-goods/our-insights/us-food-supply-chain-disruptions- and-implications-from-covid-19.
63 See Tahir Islam, Abdul Hameed Pitafi, Vikas Arya, Ying Wang, Naeem Akhtar, Shujaat Mubarik, and Liang Xiaobei, “Panic buying in the COVID-19 pandemic: a multi-country examination,” Journal of Retailing and Consumer Services, vol. 59, March 2021, https://www.sciencedirect.com/science/article/abs/pii/S0969698920313655; and Anuradha Varanasi, “Panic buying during the Covid-19 pandemic associated with psychological distress & higher income: study,” Forbes, January 30, 2021, https://www.forbes.com/sites/anuradhavaranasi/2021/01/30/panic-buying-during-the-covid-19-pandemic- associated-with-psychological-distress--higher-income-study/?sh=740a3eed267a. 64 See Julia Carpenter, “Home-improvement stocks stay the course amid nesting during Covid-19,” The Wall Street Journal, updated August 21, 2020, https://www.wsj.com/articles/home-improvement-stocks-stay-the-course-amid-nesting- during-covid-19-11598011211.
65 See “Where states reopened and cases spiked after the U.S. shutdown,” The Washington Post, updated September 11, 2020, https://www.washingtonpost.com/graphics/2020/national/states-reopening-coronavirus-map/. 66 According to Traffic Volume Trends reports from the U.S. Department of Transportation (https://www.fhwa.dot.gov/policyinformation/travel_monitoring/tvt.cfm), vehicle miles traveled fell by 19 percent in March and by 27 percent in April, before rising by 24 percent in May and by 16 percent in June. 67 See Russell Redman, “Pandemic taught grocery supply chain valuable lessons,” Supermarket News, January 29, 2021, https://www.supermarketnews.com/issues-trends/pandemic-taught-grocery-supply-chain-valuable-lessons. 68 See Gary Drenik, “Growth in direct-to-consumer ecosystem brings new challenges for brands and opportunities for consumers,” Forbes, November 10, 2020, https://www.forbes.com/sites/garydrenik/2020/11/10/growth-in-direct-to- consumer-ecosystem-brings-new-challenges-for-brands-and-opportunities-for-consumers/?sh=45b6dbca618d; and “E-commerce, trade and the COVID-19 pandemic,” information note (World Trade Organization, May 4, 2020), https://www.wto.org/english/tratop_e/covid19_e/ecommerce_report_e.pdf. 69 See “Coronavirus cancellations: every film, TV show, and event affected by the outbreak,” IndieWire, August 11, 2020, https://www.indiewire.com/feature/coronavirus-cancellations-hollywood-entertainment-covid19-1202215596/. 70 See “Select information on construction industry jobs due to coronavirus (Covid-19) in the United States as of May 2020” (Statista, May 2020), https://www.statista.com/statistics/1116499/covid-19-us-construction-industry-jobs/. 71 See “Total construction spending: residential in the United States” (FRED, Federal Reserve Bank of St. Louis), https://fred.stlouisfed.org/series/TLRESCONS; and “Total construction spending: nonresidential in the United States” (FRED, Federal Reserve Bank of St. Louis), https://fred.stlouisfed.org/series/TLNRESCONS. 72 See “New privately-owned housing units started: total units” (FRED, Federal Reserve Bank of St. Louis), https://fred.stlouisfed.org/series/HOUST; and “New one family houses sold: United States” (FRED, Federal Reserve Bank of St. Louis), https://fred.stlouisfed.org/series/HSN1F. 73 See “Spot crude oil price: West Texas Intermediate (WTI)” (FRED, Federal Reserve Bank of St. Louis), https://fred.stlouisfed.org/series/WTISPLC.
74 See “Lessons from the past: informing the mining industry’s trajectory to the next normal” (McKinsey & Company, July 24, 2020), https://www.mckinsey.com/industries/metals-and-mining/our-insights/lessons-from-the-past-informing- the-mining-industrys-trajectory-to-the-next-normal.
75 Employees who work as contractors, such as those working for rideshare companies, are not included in CES estimates, which exclude the self-employed.
76 For examples of transit system traffic declines, see Katherine Shaver, “Metro preparing for possibility of scaling back service if too many employees call in sick from coronavirus,” The Washington Post, March 12, 2020, https://www.washingtonpost.com/transportation/2020/03/12/metro-preparing-possibility-scaling-back-service-if- too-many-employees-call-sick-coronavirus/; Erica Pieschke, “BART cancels extra commute trains after ridership drops nearly 90%,” KRON, March 18, 2020, https://www.kron4.com/news/bay-area/bart-cancels-extra-commute-trains- after-ridership-drops-nearly-90/; and Laura Bliss, “When the world stops moving,” Bloomberg, March 19, 2020, https://www.bloomberg.com/news/articles/2020-03-19/the-mobility-impacts-of-coronavirus. 77 Only private employment is included in CES estimates for the transportation and warehousing industry group. For example, employees of a company contracted to operate a city’s transit system or a county’s school bus network would be classified in the transportation and warehousing industry. Employees of government agencies providing the same services, however, would be classified in the government sector. According to a 2013 report from the U.S. Government Accountability Office (GAO), “61 percent of 463 transit agencies responding to GAO’s survey reported they contract out some or all operations and services”; see “Public transit: transit agencies’ use of contracting to provide service,” GAO-13-782 (U.S. Government Accountability Office, September 2013),
https://www.gao.gov/assets/660/658171.pdf. In addition, a New York Times article reported that 40 percent of school bus service is provided by private companies; see Pranshu Verma, “‘End of the line’: school bus industry in crisis because of the coronavirus,” The New York Times, August 28, 2020, https://www.nytimes.com/2020/08/28/us/coronavirus-school-buses.html. 78 See “Air revenue passenger miles” (FRED, Federal Reserve Bank of St. Louis), https://fred.stlouisfed.org/series/AIRRPMTSID11. Air revenue passenger miles are a measure of the volume of air passenger transportation. An air revenue passenger mile is equal to one paying passenger carried 1 mile. 79 See Coronavirus Aid, Relief, and Economic Security Act, Pub. L. No. 116-136, 2020, https://www.congress.gov/bill/116th-congress/house-bill/748; and Frank S. Murray Jr., Jared B. Rifis, Leah R.
Imbrogno, Jamie N. Class, Julia Di Vito, Kaitlyn M. Foley, and Michael A. Donadio, “The Coronavirus Aid, Relief, and Economic Security Act (‘CARES Act’) is enacted into law” (Foley & Lardner LLP, March 27, 2020), https://www.foley.com/en/insights/publications/2020/03/coronavirus-cares-act-enacted-into-law. 80 The Cass Freight Index, a measure of North American freight volumes and expenditures, “includes all domestic freight modes and is derived from more than 33 million invoices and more than $26 billion in spend processed by Cass annually on behalf of its client base of hundreds of large shippers. These companies represent a broad sampling of industries including consumer packaged goods, food, automotive, chemical, medical/pharma, OEM, retail and heavy equipment.” See “A measure of North American freight volumes” (Cass Information Systems, Inc.), https://www.cassinfo.com/freight-audit-
payment/cass-transportation-indexes/cass-freight-index; and “Cass Freight Index: shipments” (FRED, Federal Reserve Bank of St. Louis), https://fred.stlouisfed.org/series/FRGSHPUSM649NCIS. 81 Truck tonnage is a measure of the gross tonnage of freight transported by motor carriers in the United States. The estimates cited here come from the U.S. Bureau of Transportation Statistics (see https://www.transtats.bts.gov/osea/seasonaladjustment/?PageVar=truck) and are calculated by using data for the For- Hire Truck Tonnage Index of the American Trucking Associations. 82 See “Parcel experts weigh in on FedEx & UPS so far throughout the COVID-19 pandemic,” Logistics Management, June 8, 2020,
https://www.logisticsmgmt.com/article/parcel_experts_weigh_in_on_fedex_ups_so_far_throughout_the_covid_19_pandemi. 83 See “Survey: US consumer sentiment during the coronavirus crisis” (McKinsey & Company, May 13, 2021), https://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/survey-us-consumer-sentiment- during-the-coronavirus-crisis.
84 See “Table 1. Estimated quarterly U.S. retail sales: total and e-commerce” (U.S. Census Bureau, last revised May 18, 2021), https://fred.stlouisfed.org/series/AIRRPMTSID11; and “E-commerce retail sales as a percent of total sales” (FRED, Federal Reserve Bank of St. Louis), https://fred.stlouisfed.org/series/ECOMPCTSA. 85 The U.S. Census Bureau does publish data on rental car company revenues, but it did not publish anything in 2020 because of sample variability. For the industry source of data on revenue declines, see “U.S. car rental revenue dives 27.4% in 2020,” Auto Rental News, December 16, 2020,
https://www.autorentalnews.com/10132672/u-s-car-rental-revenue-dives-27- 4-in-2020.
86 See Nora Naughton, “Covid-19 slammed rental-car firms, then business turned around,” The Wall Street Journal, November 2, 2020, https://www.wsj.com/articles/with-more-americans-hitting-the-road-for-travel-rental-car-companies- revive-11604317493.
87 See Annie Nova, “Millions of Americans may not be able to pay their rent in October. What to do if you’re one of them,” CNBC, October 2, 2020, https://www.cnbc.com/2020/10/02/millions-of-americans-may-not-be-able-to-pay-rent-in- october.html.
88 See “Federal eviction moratoriums in response to the COVID-19 pandemic,” CRS Insight (Congressional Research Service, updated March 30, 2021), https://crsreports.congress.gov/product/pdf/IN/IN11516. 89 See “Rental assistance in COVID-19 relief packages” (Washington, DC: National Association of Home Builders), https://www.nahb.org/advocacy/industry-issues/emergency-preparedness-and-response/coronavirus- preparedness/key-housing-provisions-in-covid-19-relief-package/rental-assistance-in-covid-19-relief-package. 90 See “COVID & collections: are occupiers paying their bills?” U.S. Market Flash (CBRE, August 10, 2020), https://www.cbre.us/research-and-reports/US-MarketFlash-COVID-Collections-Are-Occupiers-Paying-Their- Bills.
91 See Shawn Moura, “Working together as a team: negotiating with tenants and leasing space during COVID-19” (Herndon, VA: Commercial Real Estate Development Association), https://www.naiop.org/en/Research-and- Publications/Reports/Working-Together-as-a-Team-Negotiating-With-Tenants-and-Leasing-Space-During- COVID-19.
92 CES data exclude the self-employed. Real estate sales agents are generally self-employed workers rather than employees of the real estate agency with which they are affiliated. See “Licensed real estate agents—real estate tax tips” (Internal Revenue Service),
https://www.irs.gov/businesses/small-businesses-self-employed/licensed-real-estate-agents-real-estate- tax-tips.
Employment change (thousands) Cass Freight Index (January 1990 = 1) Chart 31. Over-the-month employment change in general freight and specialized freight trucking, seasonally adjusted, and Cass Freight Index, not seasonally adjusted, January–December 2020
Employment change in general freight trucking
Employment change in specialized freight trucking
Cass Freight Index
Jan 2020 Mar 2020 May 2020 Jul 2020 Sep 2020 Nov 2020
-60
-40
-20
0 20
0.8 0.9
1.0 1.1
1.2 Click legend items to change data display. Hover over chart to view data.
Source: U.S. Bureau of Labor Statistics, Current Employment Statistics survey; and Cass Information Systems, Inc.
Employment (thousands) E-commerce share (percent)
Chart 32. Employment in couriers and messengers and warehousing and storage, and e-commerce sales as a percentage of total retail sales, seasonally adjusted, January 2000–December 2020
Employment in couriers and messengers
Employment in warehousing and storage
E-commerce share of total retail sales
Jan 2000 Jan 2003 Jan 2006 Jan 2009 Jan 2012 Jan 2015 Jan 2018 400
600
800
1,000
1,200
1,400
1,600
0 3
6 9
12 15
18 Click legend items to change data display. Hover over chart to view data.
Note: Shaded areas represent recessions as determined by the National Bureau of Economic Research (NBER). When this chart was published, the NBER had not yet determined an endpoint for the recession that began in February 2020.
Source: U.S. Bureau of Labor Statistics, Current Employment Statistics survey; and U.S. Census Bureau.
Thousands
Chart 33. Employment in financial activities, seasonally adjusted, January 2010–December 2020
Jan 2010 Jan 2012 Jan 2014 Jan 2016 Jan 2018 Jan 2020
7,500
7,750
8,000
8,250
8,500
8,750
9,000
Click legend items to change data display. Hover over chart to view data.
Note: The vertical line at February 2020 represents the start of a recession, as determined by the National Bureau of Economic Research (NBER). When this chart was published, the NBER had not yet determined an endpoint for that recession.
Source: U.S. Bureau of Labor Statistics, Current Employment Statistics survey.
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City Council Staff Report
DATE: June 15, 2022
AGENDA ITEM NO:
TO: The Honorable Mayor and City Council
FROM: Anthony Antich, Interim Director of Public Works
SUBJECT: 2021-22 Street Rehabilitation at Various Locations Project – Award of Contract
RECOMMENDATION:
It is recommended that the City Council consider:
1. Authorizing the City Manager to execute a public works contract, in a form approved by the City Attorney, with All American Asphalt of Corona, CA in the contract amount of $7,294,219 for the 2021-22 Street Rehabilitation at Various Locations Project;
2. Authorizing the Director of Public Works to approve change orders and contingency up to $729,422, or 10% of the contract amount for a total project cost of $8,023,641; and,
3. Taking such additional, related action that may be desirable.
CEQA (California Environmental Quality Act):
Since the proposed work is a minor alteration to an existing public facility, this project is Class 1 Categorically Exempt pursuant to the California Environmental Quality Act (CEQA).
EXECUTIVE SUMMARY
On May 4, 2022, the City Council adopted Resolution 2022-R32 authorizing the City Engineer to approve plans and specifications for capital improvement projects and authorizing the Public Works Director to solicit bids for Capital Improvement Projects. The public bid opening for the 2021-22 Street Rehabilitation at Various Locations Project was held on June 1, 2022. Staff has completed its review of bids and recommends that the contract be awarded to All American Asphalt, the lowest responsible bidder, in the amount of $7,294,219.
BACKGROUND
The project involves the rehabilitation of the following streets:
STREET SEGMENTS
1st Street – Atlantic Blvd to West City Limits
Avenida Cesar Chavez – Bleakwood to End (Frontage)
Avenida Cesar Chavez – Schoolside Ave to Collegian Ave (Frontage) Avenida Cesar Chavez – Vancouver Ave to Westcott Ave (Frontage) Consent Calendar - 3G
Staff Report
June 15, 2022
Bleakwood Ave – Avenida Cesar Chavez to 1st St
Brightwood Street – Monterey Pass Rd to Ridgecrest St
Chalet Ter – Crest Vista Dr to End
Collegian Ave – Avenida Cesar Chavez to South End
Crest Vista Dr – Ridgecrest St to W Crest Wy
Dorner Dr – Collegian Ave to 1st St
Dorner Dr – Schoolside Ave to Vancouver Ave
Gladmar St – Collegian Ave to Sherbrook Ave
Hillside St – Ridgecrest St to Floral Dr
Longhill Wy – Longhill Dr to End
Ridgecrest Ct – Rigdecrest St to End
Pebbledon St – Brightwood St to Longhill Wy
Pebble Vale St – Pebble Ct to Brightwood St
Rock Haven St – Rockview Ct to Brightwood St
Roscommon Ave – Avenida Cesar Chavez to 1st St
Sherbrook Avenue – 1st St to Gladmar St
Stonewell St – Brightwood St to Stone Ct
Summit Pl – Ridgecrest St to End
Vancouver Ave – Dorner Dr to Avenida Cesar Chavez
Westcott Ave – Avenida Cesar Chavez to South End
Alpine Ter – Crest Vista to End
Barnum Wy – Vagabond Rd to Ridgecrest
College View Ln – College View Dr to End
Crest Haven Wy – Crest Vista Dr to End
Dell Dr – Wandering Dr to Hillvale Dr
Donner Pl – Ridgecrest St to End
Dover Wy – Crest Vista Dr to End
E Crest Wy – Ridgeside Dr to End
Glenview Ter – Crest Vista Dr to Sunrise Dr
Grand Vista Pl – Grand Vista Wy to End
Grand Vista Wy – Crest Vista Dr to End
Hillvale Dr – Dell Dr to End
Longhill Dr – Highland Dr to Hillside St
Lunar Dr – Crest Vista Dr to Brightwood St
Moonbeam Dr – Sunrise Dr to Crest Vista Dr
North Ridge Pl – Star Ridge Dr to End
Ridgecrest Wy – Ridgecrest St to End
Ridgeside Cir – Ridgeside Dr to End
Ridgeside Dr – E Crest Wy to Crest Vista Dr
Ridgeside Dr – Wandering Dr to E Crest Wy
Rodman Cir – Crest Vista Dr to End
Staff Report
June 15, 2022
Rolling Hill Dr – Crest Vista Dr to Brightwood St
Shady Crest Ln – Brightwood St to End
Solar Dr – Highland Dr to Brightwood St
Star Ridge Dr – Highland Dr to Hillside St
Sunny Slope Pl – Sunnyslope Dr to End
Sunnyhill Dr – Sunnyslope Dr to Hillside St
Sunnyslope Dr – Highland Dr to Brightwood St
Sunrise Dr – El Repetto Dr to College View Dr
Sunrise Pl – Sunrise Dr to End
Vagabond Rd – Barnum Wy to Monterey Pass Rd
Vagabond Rd – Ridgecrest St to Barnum Wy
Valley Vista Dr – Solar Dr to Floral Dr
W Crest Wy – Crest Vista Dr to End
Wandering Dr – Dell Dr to Brightwood St
Windover Wy – Crest Vista Dr to End
Ridgecrest St – Hillside St to Crest Vista Dr
Ridgecrest St – Floral Dr to Brightwood St
The work includes cold milling and removal of the existing asphalt pavement and constructing a rubberized asphalt overlay, adjusting utility covers to grade; constructing new ADA curb ramps; replacing traffic loop detectors, restoring traffic striping and pavement markings; and providing and maintaining traffic control during construction.
The public works bid was opened on June 1, 2022, and includes the following four bids:
RANK BIDDER BASE BID AMOUNT
1 All American Asphalt $ 7,294,219.00
2 Excel Paving $ 7,524,642.00
3 Onyx Paving $ 7,777,000.00
4 Hardy & Harper $ 7,950,000.00
The bid submitted by All American Asphalt , is the lowest responsive bid from a responsible bidder. All American Asphalt license was verified with the California State Contractor’s License Board to be current, active and in good standing. Registration with the California Department of Industrial Relations (DIR) was verified. Staff also checked the contractor’s references and received positive feedback.
This project is funded by Street Bond Fund 621, and is included in the 2022-2023 fiscal year Capital Improvement Program.
Staff Report
June 15, 2022
FISCAL IMPACT
Funds for this project have been budgeted in the FY22-23 Capital Improvement Plan (CIP) as Project No. 96030. There are sufficient funds for the contract amount of $7,294,219 and a contingency of $729,422 for a total of $8,023,641.
Respectfully submitted and prepared by: Reviewed by:
Anthony Antich
Interim Director of Public Works
Martha Garcia
Director of Management Services
Approved by: Reviewed by:
Ron Bow
City Manager
Karl H. Berger
City Attorney
ATTACHMENT
1. All American Asphalt Proposal
Staff Report
June 15, 2022
ATTACHMENT 1
All American Asphalt
City Council Staff Report
DATE: June 15, 2022
AGENDA ITEM NO:
TO: The Honorable Mayor and City Council
FROM: Anthony Antich, Interim Director of Public Works
SUBJECT: 2022 Catch Basin Retrofit Device Installation – Award of Contract RECOMMENDATION:
It is recommended that the City Council consider:
1. Authorizing the City Manager to execute a public works contract, in a form approved by the City Attorney, with United Storm Water Inc. of Industry, CA in the contract amount of $99,450 for the 2022 Catch Basin Retrofit Device Installation;
2. Authorizing the Director of Public Works to approve change orders and contingency up to $9,945, or 10% of the contract amount;
3. Taking such additional, related action that may be desirable.
CEQA (California Environmental Quality Act):
Since the proposed work is a minor alteration to an existing public facility, this project is Class 1 Categorically Exempt pursuant to the California Environmental Quality Act (CEQA).
EXECUTIVE SUMMARY
On May 4, 202 2, the City Council adopted a resolution authorizing the City Engineer to approve plans and specifications for capital improvement projects, and authorizing the Public Works Director to solicit bids for Capital Improvement Projects identified in the CIP. The public bid opening for the 2022 Catch Basin Retrofit Device Installation was held on May 24, 2022.
Staff has completed its review of bids and recommends that the contract be awarded to United Storm Water Inc., the lowest responsible bidder, in the amount of $99,450.
BACKGROUND
The City is required to conduct a trash study every summer in order to demonstrate that the City is achiev ing a reduction in trash discharge of 99% or greater from the baseline load.
Unfortunately, the City is currently not meeting the 99% trash reduction, as required by the Regional Board. At this moment, all City owned catch basins are currently fitted with a Connector Pipe Screen (retrofit device); therefore, the next option is to retrofit LA County owned catch basins located within the City with Connector Pipe Screen devices to aid the City in meeting the 99% trash reduction. The Connector Pipe Screen (CPS) units prevent trash and debris from entering the storm drain system during dry weather and moderate storm flows by keeping the trash and debris inside the catch basin. The City’s stormwater consultants recommended 130 catch basin locations to be retrofitted as part of this project.
Consent Calendar - 3H
Staff Report
June 15, 2022
The work includes cleaning of the existing catch basins, and installing CPS units following LA County standards. United Storm Water Connector Pipe Screen (CPS) Unit specs and drawings are one of the few approved by LA County.
The public works bid was opened on May 24, 2022, and includes the following 3 bids:
RANK BIDDER BASE BID AMOUNT
1 United Storm Water Inc $ 99,450
2 Downstream Services Inc $ 185,900
3 Gentry General Engineering Inc $ 445,520
The bid submitted by United Storm Water Inc, is the lowest responsive bid from a responsible bidder. United Storm Water Inc’s license was verified with the California State Contractor’s License Board to be current, active , and in good standing. Registratio n with the California Department of Industrial Relations (DIR) was verified. Staff also checked the contractor’s references and received positive feedback.
FISCAL IMPACT
This project has been budgeted in the FY22-23 Capital Improvement Plan (CIP) as Project No.96033 and will be funded from Measure W Funds. There is no impact to the General Fund.
Staff Report
June 15, 2022
Respectfully submitted and prepared by: Reviewed by:
Anthony Antich
Interim Director of Public Works
Martha Garcia
Director of Management Services
Approved by: Reviewed by:
Ron Bow
City Manager
Karl H. Berger
City Attorney
ATTACHMENT
1. United Storm Water Inc Proposal
Staff Report
June 15, 2022
ATTACHMENT 1
United Storm Water Inc Proposal
City Council Staff Report
DATE: June 15, 2022
AGENDA ITEM NO:
TO: The Honorable Mayor and City Council
FROM: Anthony Antich, Interim Director of Public Works
SUBJECT: 2022 Slurry Seal At Various Locations – Award of Contract RECOMMENDATION:
It is recommended that the City Council consider:
1. Authorizing the City Manager to execute a public works contract, in a form approved by the City Attorney, with Onyx Paving Company Inc. of Anaheim, CA in the contract amount of $848,000 for the 2022 Slurry Seal At Various Locations;
2. Authorizing the Director of Public Works to approve change orders and contingency up to $127,200, or 15% of the contract amount; and
3. Taking such additional, related action that may be desirable.
CEQA (California Environmental Quality Act):
Since the proposed work is a minor alteration to an existing public facility, this project is Class 1 Categorically Exempt pursuant to the California Environmental Quality Act (CEQA).
EXECUTIVE SUMMARY
On May 4, 2022, the City Council adopted a resolution authorizing the City Engineer to approve plans and specifications for capital improvement projects and authorizing the Public Works Director to solicit bids for Capital Improvement Projects identified in the CIP.
The public bid opening for the 2022 Slurry Seal At Various Locations was held on May 26, 2022. Staff has completed its review of bids and recommends that the contract be awarded to Onyx Paving Company, Inc., the lowest responsible bidder, in the amount of $848,000.
BACKGROUND
The project involves the application of an asphalt emulsion slurry type II seal on various residential streets. The project also includes full depth localized asphalt concrete patch and the restoration of the existing traffic striping and pavement markings. The project will cover the area generally bound by Ridge Crest Street, Brightwood Street, as well as Bridercliff Way, Sherbrook Ave, and a portion of Collegian Ave between Floral Drive and Avd Cesar Chavez.
The project is funded by Street Bond Fund 621, budge ted in the 2022-2023 fiscal year Capital Improvement Program.
Consent Calendar - 3I