HomeMy WebLinkAbout13-Human Resources
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CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
From:
Linn Livingston, Director
of Human Resources
Subject: SIDE LETTER AGREEMENT
WITH FIRE SAFETY EMPLOYEES
Dept: Human Resources
Date: May 6, 2009
MICC Meeting Date: May 18, 2009
Synopsis of Previous Council Action:
On March 6. 2006, the Mayor and Common Council approved Resolution No. 2006-66.
which implemented a Memorandum of Understanding (MOU) between the City of San
Bernardino and employees in the Fire Safety Unit represented by San Bemardino
Professional Firefighters.
Recommended Motion:
Adopt Resolution.
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Sign~
Contact person:
Linn Livinaston
Phone: x5161
Supporting data attached:
Ward:
FUNDING REQUIREMENTS:
Amount: Aoorox. $1,425.400 savinas over 13 months
Source: (Acct. No.)
(Acct. Description)
Finance:
Council Notes:
Agenda Item No. ,2>
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CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
Staff Report
Subiect:
Resolution of the Mayor and Common Council of the City of San Bernardino Approving a Side
Letter to Resolution 2006-66 for full-time, Fire Safety Employees, amending the current
language in Article III, Compensation: Section 1, Salaries, Subsection (A); Article IV, Fringe
Benefits: Section 1, Health/Related Insurance, Subsection (C); Article IV, Fringe Benefits:
Section 4, Deferred Compensation; Article IV, Fringe Benefits: Section 7, Vacation and Holiday
Sell-Back; Article IV, Fringe Benefits: Section 8, Welfare Benefit Trust; Artiele V, Leave
Provisions: Section 1, Vacation, Subsection (E); adding Article IV, Fringe Benefits: Section 9,
Post Employment Health Plan Programs; Article V, Leave Provisions: Section 7, Budget
Concession Leave; and Article VII, General Provisions, Section 2, Term.
Baekl!:round:
As a result of the City's budget deficit, the Human Resources Department met and conferred
with the Fire Safety employees. In an effort to assist the City, the bargaining unit agreed to
employee concessions equaling approximately a ten percent (10%) reduction in salary.
Effective with the payroll period beginning June 1,2009, through June 30, 2010, Fire Safety
employees agree to contribute a $664 per month "Negotiated Concession" to the City.
In return for the employee concessions, it is recommended that the following actions be adopted:
~ Extend the current Memorandum of Understanding (MOU) for Fire Safety employees for
a one (1) year period (July 1,2009, through June 30, 2010).
~ Effective June I, 2009, and continuing through June 30, 2010, employees will accrue
four (4) hours of paid leave time per week. The hours will be scheduled in accordance
with established departmental policy and will have no expiration date or cash value
except for Fire Safety employees who retire prior to June 30, 2010, who will be
compensated for 50% of the accumulated leave hours. Employees will not use leave time
prior to July I, 2010.
~ Employees agree to sell back a minimum of 48 hours of vacation or holiday time on or
before June 30, 2009, and an additional 48 hours prior to June 30, 2010. A minimum of
. 24 hours must be requested per sell back and employees will be allowed to sell back
holiday or vacation time anytime throughout the fiseal year.
~ The City will establish a Post Employment Health Plan (PEHP): 401 (a) Accumulated
Benefit Conversion Program, Universal Reimbursement Account, and Insurance
Premium Reimbursement Account.
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,. The City agrees to contact its healthcare vendors to determine if the City's current
contracts can be amended to allow for the transfer of deferred compensation deposits to
pay for medical premiums, up to a maximum ofS3,000 annually. Costs to establish this
program shall not exceed $500 annually and will be paid by the City. The City agrees to
update the Union on a regular basis of issues and/or progress.
,. On or before January I, 2010, the City will establish a medical benefit cash-out program
for employees who opt out of the City's healthcare plans.
,. Effective June 1,2009, increase the vacation accrual maximum by 15%.
Cap With 15%
Increase
276
414
552
Current Cap
240
360
480
,. Ifthe Firefighters' Union can satisfy the City's liability concerns, the City will move
forward to process VEBA contributions pre-taxed (if applicable) through payroll
deductions.
:;.. The employee concessions are necessary during these very difficult economic times. The
City and members of the Fire Safety Employees agree that if the economy were to
improve prior to June 30, 2010, the following "trigger" language would be followed:
The City agrees to restore the ten percent (10%) employee concession
prior to June 30, 2010, if the City receives a Federal or State bailout or
other windfall that can be applied to the General Fund with no limitations
equal to or greater than 75% of the City's total projected deficit for that
year.
Financial ImDact:
This will result in approximately $1,425,400 in savings over 13 months.
Recommendation:
Adopt Resolution.
Exhibit A
SIDE LETTER AMENDMENT/AGREEMENT TO RESOLUTION 2006-66
FIRE SAFETY EMPLOYEES
This Side Letter amends the current language in Resolution 2006-66 for full-time, Fire Safety
Employees, amending the current language in Article III, Compensation: Section 1, Salaries,
Subsection (A); Article IV, Fringe Benefits: Section I, HealthlRelated Insurance, Subsection (C);
Article IV, Fringe Benefits: Section 4, Deferred Compensation; Article IV, Fringe Benefits:
Section 7, Vacation and Holiday Sell-Back; Article IV, Fringe Benefits: Section 8, Welfare
Benefit Trust; Article V, Leave Provisions: Section I, Vacation, Subsection (E); adding Article
IV, Fringe Benefits: Section 9, Post Employment Health Plan Programs; Article V, Leave
Provisions: Section 7, Budget Concession Leave; and Article VII, General Provisions, Section 2,
Term, by adding the following language to the referenced articles, sections and subsections:
A. ARTICLE III, COMPENSATION: SECTION I. SALARIES. SUBSECTION (A)
"For the temporary period commencing with the payroll period beginning June 1,2009,
and continuing through June 30, 2010, employees agree to contribute a $664 per month
'Negotiated Concession' to the City. The negotiated concession is a line item deduction
on each employee's paycheck."
B. ARTICLE IV. FRINGE BENEFITS: SECTION I. HEALTH/RELATED INSURANCE,
SUBSECTION (C)
"On or before January 1, 2010, the City will establish a medical benefit cash-out
program for employees who opt out of the City's healthcare plans."
C. ARTICLE IV. FRINGE BENEFITS: SECTION 4. DEFERRED COMPENSATION
"The City agrees to contact its healthcare vendors to determine if the City's current
contracts can be amended to allow for the transfer of deferred compensation deposits to
pay for medical premiums, up to a maximum of $3,000 annually. Annual program costs
shall not exceed $500 and will be paid by the City. The City agrees to update the Union
on a regular basis of issues and/or progress."
D. ARTICLE IV. FRINGE BENEFITS: SECTION 7. VACATION AND HOLIDAY SELL-
BACK
"Effective June 1, 2009, employees will sell back a minimum of 48 hours of vacation
and/or holiday time on or before June 30, 2009. Beginning July I, 2009, employees will
sell back an additional 48 hours of vacation and/or holiday time before June 30, 2010. A
minimum of24 hours must be requested per sell back and employees will be allowed to
sell back holiday or vacation time anytime throughout the fiscal year. Beginning June 1,
2009, employees may sell back holiday and/or vacation time up to six (6) shifts of
holiday and ten (10) shifts of vacation on a fiscal-year basis at anytime throughout the
fiscal year as long as a minimum of 24 hours is requested per sell-back and does not
result in a negative vacation balance."
E. ARTICLE IV. FRINGE BENEFITS: SECTION 8. WELFARE BENEFIT TRUST
"Effective June I, 2009, if the Firefighters Union can satisfy the City's liability
concerns, the City will move forward to process pre-tax Voluntary Employee Benefit
Association (VEBA) contributions (if applicable) through payroll deductions."
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Exhibit A
F. ARTICLE IV. FRINGE BENEFITS:
"SECTION 9, POST EMPLOYMENT HEALTH PLAN (PEHP) PROGRAMS
The City will establish the following Post Employment Health Plan (PEHP) programs:
I. 401 (a) Accumulated Benefit Conversion Program
2. Universal Reimbursement Account
3. Insurance Premium Reimbursement Account"
G. ARTICLE V. LEAVE PROVISIONS: SECTION I. VACATION. SUBSECTION (E)
"Effective June 1,2009, vacation credits may accumulate an additional 15% as follows:
Cap with 15%
Increase
276
414
552"
Current CaD
240
360
480
H. ARTICLE V. LEA VB PROVISIONS:
"SECTION 7: BUDGET CONCESSION LEAVE
Effective June I, 2009, and continuing through June 30, 2010, employees will accrue
four (4) hours of paid leave time per week. The hours will be scheduled in accordance
with established departmental policy and will have no expiration date or cash value
except for Fire Safety employees who retire prior to June 30, 2010, who will be
compensated for 50% of the accumulated leave hours. Employees will not use leave time
prior to July I, 2010."
I. ARTICLE VII. GENERAL PROVISIONS: SECTION 2. TERM
"Effective July I, 2009, the term of this Memorandum of Understanding (MOU) extends
through June 30, 2010."
The City and members of the Fire Safety Employees agree that if the economy were to improve
prior to June 30, 2010, the following "trigger" language would be followed:
"The City agrees to restore the ten percent (10%) employee concession prior to
June 30, 2010, if the City receives a Federal or State bailout or other windfall that
can be applied to the General Fund with no limitations equal to or greater than
75% ofthe City's total projected deficit for that year."
DATE:
ATTEST:
City Clerk
FOR THE CITY:
REPRESENTATIVES OF:
FIRE SAFETY EMPLOYEES
LORI SASSOON, Acting City Manager
City of San Bernardino
San Bernardino City Professional Firefighters
Local 891
LINN LIVINGSTON,
Director of Human Resources