HomeMy WebLinkAbout03 - Approving Side Letter Agreements with the Labor Groups Representing City Employees, Amendment to the Key and Management Comp Plan, and Amending the City's Salary Schedules - CorrespondenceReceived after Agenda Printed
August 23, 2022
Item No. 3
From: Rieff, Kim
To: Mulvey, Jennifer
Subject: FW: City Council Mtg 2022-08-23 - Item No. 3 - Resolution No. 2022-52 (3% COLA for Future Years)
Date: August 22, 2022 12:27:35 PM
From: Carmen Rawson <carmen rawson@att.net>
Sent: August 22, 2022 12:23 PM
To: Dept - City Council <CityCouncil@newportbeachca.gov>
Cc: Leung, Grace <gleung@newportbeachca.gov>
Subject: City Council Mtg 2022-08-23 - Item No. 3 - Resolution No. 2022-52 (3% COLA for Future
Years)
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City Council members,
The inflation levels we have had this year are unprecedented (for the last 40 years) and I can understand
why City Council wishes to increase the currently scheduled COLAs to three percent (3%) retroactive
from January 2022 and for the fiscal year 2022-23. However, why are we setting a fixed 3% COLA
beyond the fiscal year 2022-23?
The various Memorandum of Understanding (MOU) listed in Resolution No. 2022-52 have terms expiring
as early as November 30, 2025 and as late as June 30, 2026. With the Federal Reserve increasing
interest rates and other government measures the cost of, for example, gasoline has come down. No
one knows what inflation is going to be one year from now or beyond so why is City Council proposing to
commit to a 3% COLA for multiple years? I believe that would be fiscally irresponsible.
The "inflation related COLA" should be a temporary short-term measure not a multi -year commitment,
which could be reevaluated a year from now to determine if the additional "inflation related COLA" should
be extended to a longer term.
Most of the time COLA is tied to a specific "index" rather than a (multi -year) flat percentage rate. Also,
COLA should be a lower percentage for an employee with an annual salary of, for example, $160,000
versus an employee with an annual salary of, for example, $50,000. The higher the annual salary the
lower the COLA percentage rate.
Sincerely,
Carmen Rawson