Report to Mayor and City Council
Tuesday, July 05, 2022
Consent
SUBJECT:
Title
CONSIDER PROPOSED RECOMMENDATIONS ON THE USE OF THE CITY’S AMERICAN RESCUE PLAN FUNDS FOR PREMIUM TO RETIRED CITY EMPLOYEES AND ADOPTION OF RESOLUTION 22-138 TO AMEND THE FISCAL YEAR 2022-2023 ARPA BUDGET ALLOCATION (CITY COUNCIL).
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I. SUMMARY
The City Council adopted Resolution No. 22-039 on March 15, 2022 regarding expenditures of American Rescue Plan Act (ARPA) provides Coronavirus State and Local Fiscal Recovery Funds (SLFRF) funds to provide a one-time lump sum payment of premium pay for employees and elected officials who worked at City facilities during the pandemic and who are currently employed by the City. The one-time lump-sum payment of premium pay is not considered pensionable compensation under CalPERS regulations, and is not considered an increase of ongoing salary or compensation.
On June 21, 2022, Council member Jim Dear requested staff to bring back a budget resolution to provide a one-time lump sum payment of premium to City employees who retired between September 1, 2021 to present.
II. RECOMMENDATION
Recommendation
1. APPROVE proposed recommendations on the use of the City’s American Rescue Plan Act funds.
2. ADOPT Resolution No. 22-138, A RESOLUTION OF THE CITY OF CARSON CITY COUNCIL AMENDING THE FISCAL YEAR 2022-2023 BUDGET IN THE AMERICAN RESCUE PLAN FUND.
1.
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III. ALTERNATIVES
DO NOT APPROVE the proposed ARPA financial plan and PROVIDE additional direction to staff.
IV. BACKGROUND
According to the US Treasury’s Final Rule, all local government employees are among the categories of eligible workers, including full-time, part-time, permanent, temporary employees and Elected Officials. The Final Rule maintains that “essential work” is that (1) is not performed while teleworking from a residence and (2) involves either (i) regular, in-person interactions with patients, the public, or coworkers of the individual that is performing the work or (ii) regular physical handling of items that were handled by, or are to be handled by, patients, the public, or coworkers of the individual that is performing the work. On March 15, 2021, the City Council approved a $12,500 for all Full-time, Part-time employees and Elected Officials. On June 21, 2022, Council member Jim Dear requested staff to bring back a budget resolution to provide a one-time lump sum payment of premium to City employees who retired between September 1, 2021 to present.
V. FISCAL IMPACT
If the City Council approves premium for retired City employees, the ARPA budget would be allocated to certain budget accounts as identified in Exhibit 1 - Resolution No. 22-138.
VI. EXHIBITS
Exhibit 1 - Resolution No. 22-138 (pgs.3-4)
Prepared by: Tarik Rahmani, Finance Director