R-120-21 To Amend the Budget for Fiscal Year Commencing July 1, 2021 and Ending June 30, 2022 in the Amount of $1,711,652.37 For Fair Labor Standard ACT FLSA Settlement Agreements

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10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. R-120-21 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COLTON TO AMEND THE BUDGET FOR FISCAL YEAR COMMENCING JULY 1, 2021 AND ENDING JUNE 30, 2022 IN THE AMOUNT OF $1,711,652.37 FOR FAIR LABOR STANDARD ACT ("FLSA")SETTLEMENT AGREEMENTS. WHEREAS, the Budget for Fiscal Year commencing July 1, 2021 and ending June 3 2022 was approved and adopted by Resolution No. R-58-21 on May 18, 2021; and WHEREAS, in accordance with Colton Municipal Code, the re -allocation i appropriations between department activities may be made by the City Manager, but budg amendments (increases/dmremes) shall be by approval and Resolution of the City Council; and WHEREAS, under the FLSA, overtime hours must be compensated at a rate that is least one -and -a -half times the employee's hourly "regular rate." (29 U.S.C. sec. 207(a)(1).); and WHEREAS, the Ninth Circuit held that cash payments made to employees in lieu , health benefits must be included in the hourly `regular rate" used to compensate employees f overtime hours worked (Flores et al. v. City ojSan Gabriel, 824 F. 3d 890 - 2016); and WHEREAS, the City of Colton provides a "Flexible Benefits Plan" to employees, and which a designated monetary amount is furnished to each employee for the purchase of medics vision, and dental benefits. Although employees must use the Plan's funds for qualified medico vision, and dental benefits, they may decline the purchase of medical benefits upon proof alternate medical coverage; and WHEREAS, Legal Counsel for the City and counsel for Local 935, et. al. and the PO had reached settlement framework where: • Unpaid overtime will be calculated and paid retroactive from September/October 2019. • Employees will waive any right to pursue liquidated damages for the unpaid overtime. • The City will pay Local 935's and the POA's reasonable attorneys' fees, as required I law; and WHEREAS, On February 2, 2021, City Council adopted Resolution R-07-21, which, among other things, authorized the Finance Director to commit $1,300,000 of General Fund reserves for settlement agreements; and, NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Colton does hereby find, determine and declare as follows: SECTION 1. It is necessary to make an amendment to the FY2021-22 Budget appropriate the funds to make the settlement payments required under the FLSA in the following accounts: