HomeMy WebLinkAboutItem 10b - Budget Appropriation for Confidential Employment Matters
STAFF REPORT
HUMAN RESOURCES DEPARTMENT
DATE: January 20, 2026
TO: Honorable Mayor and City Council
FROM: Anely Williams, Human Resources Director
SUBJECT: RESOLUTION NO. 7671 AMENDING THE FISCAL YEAR 2025-26 GENERAL
FUND BUDGET, AUTHORIZING A SUPPLEMENTAL BUDGET
APPROPRIATION FOR CONFIDENTIAL EMPLOYMENT MATTERS IN THE
AMOUNT OF $300,000, OFFSET BY A REDUCTION IN THE GENERAL FUND
RESERVE; AND APPROVE TWO PURCHASE ORDERS WITH DEBRA L.
REILLY, APLC IN AN AMOUNT NOT TO EXCEED $60,000 TOTAL, ONE
PURCHASE ORDER WITH JL GROUP, LLC IN AN AMOUNT NOT TO EXCEED
$55,000, AND ONE PURCHASE ORDER WITH LIEBERT CASSIDY
WHITMORE IN AN ADDITIONAL AMOUNT OF $125,000, FOR
PROFESSIONAL SERVICES RELATED TO CONFIDENTIAL EMPLOYMENT
MATTERS
CEQA: Not a Project
Recommendation: Adopt and Approve
SUMMARY
The Human Resources Department (“HR”) is responsible for employment and risk
management services in support of the City’s operating departments. Such
confidential employment matters include disability accommodation processes, leave
management, conducting and coordinating confidential personnel investigations,
and related employment matters. Many of HR’s core functions are unpredictable in
nature, particularly confidential personnel investigations that often occur without
advance notice or preparation. Nevertheless, the City has a duty to address all
confidential employment matters.
In prior fiscal years, HR’s Operating Budget sufficiently covered the cost of such
investigative and related processes. However, in Fiscal Year 2025-26, a significant
number of unanticipated matters were initiated, and the existing HR Operating
Budget Appropriation for Confidential Employment Matters
January 20, 2026
Page 2 of 4
Budget is insufficient to pay for these required services. Accordingly, it is
recommended that the City Council approve Resolution No. 7671 amending the
Fiscal Year 2025-26 General Fund Budget, authorizing a supplemental budget
appropriation for confidential employment matters in the amount of $300,000; and
approve two Purchase Orders with Debra L. Reilly, APLC in an amount not to exceed
$60,000 total, one Purchase Order with JL Group, LLC in an amount not to exceed
$55,000, and one Purchase Order with Liebert Cassidy Whitmore in an additional
amount of $125,000.
DISCUSSION
The Human Resources Department (“HR”) is responsible for administering highly
sensitive, confidential, and legally mandated functions in support of the City’s
operating departments. These responsibilities require adherence to federal and
state employment laws, as well as the consistent application of City policies. Services
provided by HR include managing confidential employment matters such as disability
accommodations, interactive process compliance, leave management, conducting
and coordinating confidential personnel investigations, and addressing other
complex employment-related matters.
A significant portion of HR’s work is inherently unpredictable and frequently requires
immediate and sustained attention. The nature of these responsibilities makes it
particularly challenging to anticipate the volume, timing, and complexity of services
provided. Notably, confidential personnel investigations can occur at any time and
without advance notice or preparation, while simultaneously requiring prompt
action to mitigate risk, ensure workplace safety, preserve confidentiality, and ensure
compliance with applicable laws and policies. These investigation processes often
necessitates the use of specialized resources, including outside investigators and
legal consultation.
Despite the unpredictable nature of this work, the City has an obligation to respond
to complaints and undertake confidential personnel investigations. In prior years,
HR’s Operating Budget sufficiently covered the costs associated with confidential
employment matters, including investigative services and related processes.
However, during the current fiscal year, an unanticipated increase in the number and
complexity of confidential employment matters has exceeded historical norms. As a
result, the existing HR Operating Budget is insufficient to pay for these required
Budget Appropriation for Confidential Employment Matters
January 20, 2026
Page 3 of 4
services. Additional funding is necessary to complete pending employment matters
and ensure compliance with legal requirements through the end of Fiscal Year 2025-
26.
Accordingly, it is recommended that the City Council approve Resolution No. 7671
amending the Fiscal Year 2025-26 General Fund Budget, authorizing a budget
appropriation for confidential employment matters in the amount of $300,000; and
approve two (2) Purchase Orders with Debra L. Reilly, APLC in an amount not to
exceed $60,000 total, one (1) Purchase Order with JL Group, LLC in an amount not to
exceed $55,000, and one (1) Purchase Order for Liebert Cassidy Whitmore in an
additional amount of $125,000. The requested amounts would fund the unplanned
work to date and accommodate other confidential employment matters that may
arise during the remainder of the fiscal year.
ENVIRONMENTAL ANALYSIS
The proposed action does not constitute a project under the California
Environmental Quality Act (“CEQA”), based on Section 15061(b)(3) of the CEQA
Guidelines, as it can be seen with certainty that it will have no impact on the
environment.
FISCAL IMPACT
The total cost of the unanticipated confidential employment matters and related
processes is $300,000. This cost was not anticipated nor included in the Human
Resources Department’s Fiscal Year 2025-26 Operating Budget. Therefore, a budget
appropriation from the General Fund Reserves is necessary to complete these
required processes.
RECOMMENDATION
It is recommended that the City Council determine that this action does not
constitute a project under the California Environmental Quality Act (“CEQA”); and
adopt Resolution No. 7671 amending the Fiscal Year 2025-26 General Fund Budget,
authorizing a supplemental budget appropriation for confidential employment
matters in the amount of $300,000, offset by a reduction in the General Fund
Reserve; and approve two Purchase Orders with Debra L. Reilly, APLC in an amount
Budget Appropriation for Confidential Employment Matters
January 20, 2026
Page 4 of 4
not to exceed $60,000 total, one Purchase Order with JL Group, LLC in an amount not
to exceed $55,000, and one Purchase Order with Liebert Cassidy Whitmore in an
additional amount of $125,000, for professional services for confidential
employment matters.
Attachment: Resolution No. 7671
1
RESOLUTION NO. 7671
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA,
CALIFORNIA, AMENDING THE FISCAL YEAR 2025-26 GENERAL FUND
BUDGET, AUTHORIZING A SUPPLEMENTAL BUDGET APPROPRIATION
FOR CONFIDENTIAL EMPLOYMENT MATTERS IN THE AMOUNT OF
$300,000, OFFSET BY A REDUCTION IN THE GENERAL FUND RESERVE
WHEREAS, the Human Resources Department (“Department”) provides
comprehensive human resources and risk management services in support of the
City’s operating departments; and
WHEREAS, the nature of the Department’s functions are highly sensitive,
confidential, frequently legally required, and carry significant fluctuation and
unpredictability; and
WHEREAS, unanticipated confidential employment matters arose that were
not previously included in the Department’s Fiscal Year 2025-26 Operating Budget;
and
WHEREAS, a budget appropriation of $300,000 is necessary to provide funding
for the Department’s functions this Fiscal Year; and
WHEREAS, the Administrative Services Director has projected that there are
adequate reserves in the General Fund to fund the additional appropriation needed
for these services.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA,
DOES FIND, DETERMINE AND RESOLVE AS FOLLOWS:
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SECTION 1. The sum of $300,000 is hereby appropriated to the General Fund
Operating Budget for the purposes of funding the costs of each confidential
employment matter for the period of July 1, 2025, through June 30, 2026.
SECTION 2. The City Clerk shall certify to the adoption of this Resolution.
Passed, approved and adopted this 20th day of January, 2026.
______________________________
Mayor of the City of Arcadia
ATTEST:
__________________________
City Clerk
APPROVED AS TO FORM:
__________________________
Michael J. Maurer
City Attorney