RPVCCA_CC_SR_2015_03_17_05_Continue_Additional_Compensation_Dep_CMMEMORANDUM
TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS
FROM: CAROL W. LYNCH, CITY ATTORNEY
DATE: MARCH 17, 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 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 the Acting City Manager in
addition to the duties of the Deputy 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.
This item was on the agenda for the City Council meeting on March 3rd. During the
Council's discussion, Council Member Campbell requested that CALIPERS and the
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Continue Additional Compensation to be Paid to the Deputy City Manager
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March 17, 2015
City's labor attorneys be contacted to confirm whether the continued temporary increase
of Ms. Petru's compensation would be "reportable" compensation that would be subject
to CALPERS retirement benefits. The City Attorney subsequently contacted Mr. Peter
Brown of Liebert Cassidy Whitmore who confirmed the advice that had been given by
the City Attorney that the temporary salary increase would not be subject to CALPERS
retirement benefits. Mr. Brown stated that based on the provisions of Section 571 of the
CALPERS Regulations, which are set forth in the California Code of Regulations, the
continued temporary increase to Ms. Petru's compensation would not be reportable
compensation that is subject to CALPERS retirement benefits.
On Tuesday, March 10, 2015, Ms. Mary Peterson of CALPERS returned the City
Attorney's telephone call and discussed this issue with the City Attorney. In that
telephone conversation, Ms. Peterson also confirmed that the proposed temporary
compensation to be paid to the Deputy City Manager through the end of the City's fiscal
year would not be reportable compensation that is subject to CALPERS retirement
benefits.
Having now received confirmation directly from CALPERS that the temporary salary
increase will not be reportable income to CALPERS, Staff recommends that the
temporary increase be allocated entirely to the Deputy City Manager's salary and not be
divided between salary and an increase of the Deputy City Manager's car allowance.
Otherwise, the City Council will be required to amend Resolution No. 2015-08 to
increase the car allowance for the Deputy City Manager from $150 to $500 per month,
and then amend it again to reduce the car allowance back to $150 per month.
ALTERNATIVE
If the City Council does not agree with the recommended approach, the City Council
can amend Resolution No. 2015-08 to increase the Deputy City Manager's car
allowance to $500 per month and increase the Deputy City Manager's compensation by
$650 per month through the end of the 2014-15 fiscal year.
FISCAL IMPACT
For four months (March through June), Deputy City Manager Petru will receive
additional compensation of $1000 per month. CALPERS now has verified that the
temporary salary increase would not be treated by CALPERS as reportable
compensation, so it would not be subject to CALPERS retirement benefits.
CONCLUSION
It is recommended that the City Council approve the temporary increase of the Deputy
City Manager's salary in the amount of $1000 per month through the end of the 2014-15
fiscal year, which ends on June 30, 2015.
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