RPVCCA_CC_SR_2015_03_03_G_ Continue_Add_Comp_Deputy_City_Mgrti
CITYOF RANCHO PALOS VERDES
MEMORANDUM
TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS
FROM: CAROL W. LYNCH, CITY ATTORNEY
DATE: MARCH 3, 2015
SUBJECT: CONTINUE ADDITIONAL COMPENSATION TO BE PAID
TO THE DEPUTY CITY MANAGER THROUGH THE END OF
THE 2014-15 FISCAL YEAR
REVIEWED: DOUG WILLMORE, CITY MANAGER
RECOMMENDATION:
Approve continuing the additional compensation that has been paid to the Deputy City
Manager in the amount of $1,000 per month, which is allocated between a temporary
salary increase of $650 and an increase to her automobile allowance in the amount of
$350, through the end of the City's fiscal year (June 30, 2015).
DISCUSSION
In January 2014, the City Council approved a temporary compensation increase for the
Deputy City Manager while she performed the duties of Acting City Manager during the
recruitment of the new City Manager. Accordingly, Ms. Petru's automobile allowance
was increased from the pre-existing amount of $150 per month to $500 per month, and
her salary was increased by $650 per month.
Mayor Knight has proposed that the additional compensation that the City has paid to
Ms. Petru be continued through the end of the City's current fiscal year, which ends on
June 30, 2015, to compensate her for providing background information and assistance
to the new City Manager, Mr. Doug Willmore. In addition, prior to being hired by the
City, Mr. Willmore had advised the City Council that he previously had committed to a
vacation trip of seven business days during the month of May. Accordingly, it will be
necessary for Ms. Petru to resume the duties of Acting City Manager while Mr. Willmore
is on vacation, in addition to performing her regular duties as the Deputy City Manager.
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Continue Additional Compensation to be Paid to the Deputy City Manager
Page 2
March 3, 2015
FISCAL IMPACT
For four months (March through June), Deputy City Manager Petru will receive
additional compensation of $650 per month, and her car allowance will continue to be
increased by $350 per month. The increase of the automobile allowance clearly is not
salary for PERS purposes. However, it is unclear whether the temporary salary increase
would be treated by PERS as additional compensation that is subject to PERS
retirement benefits.
Previously, the City Attorney's Office and Special Labor Counsel opined that the
additional compensation that was paid to Ms. Petru while she served as the Acting City
Manager would not be subject to PERS retirement benefits. The key elements here are
that Council would not be amending the salary schedule; the temporary increase is not
being granted pursuant to a City contract or labor policy, and it is not available to any
other City employees.
It cannot be stated with certainty what CALIPERS would determine regarding the
increased salary. However, it should be pointed out that even if this additional amount
were included in the PERS retirement formula, if Ms. Petru were to receive future cost
of living increases before her retirement, this temporary salary increase could be
subsumed within the COLA increases, depending upon the amount of the increase(s).
CONCLUSION
It is recommended that the City Council approve the increase of the automobile
allowance of $350 per month and a salary increase in the amount of $650 per month for
the Deputy City Manager through the end of the 2014-15 fiscal year.
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