HomeMy WebLinkAbout2013-023 1 RESOLUTION NO. 2013-23 2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN 3 BERNARDINO ADOPTING TERMS AND CONDITIONS OF EMPLOYMENT FOR SAN BERNARDINO FIRE MANAGEMENT ASSOCIATION (SBFMA) UNIT 4 EMPLOYEES. 5 WHEREAS, in meeting its commitments to the citizens of the City of San 6 Bernardino to maintain a safe and secure community while providing access to 7 cultural, recreational and governmental activities and institutions for all citizens, the 8 City has employed a workforce; and 9 WHEREAS, most City employees are entitled to collectively bargain with the 10 City regarding terms and conditions of employment; and 11 WHEREAS, as nearly two-thirds of the City's General Fund is tied directly to the salaries and benefits paid to City employees, the City's labor costs for the 2012- 12 2013 Fiscal Year (FY) exceed the City's projected revenues; and 13 WHEREAS, despite cost savings measures previously taken by the City, the 14 City's financial situation is dire with no available cash to meet on-going operating 15 expenses, including payroll, and no revenue or other funding sources are available to 16 balance the City's budget and address prior years' deficits; and 17 WHEREAS, on July 18, 2012, the Mayor and Common Council directed the 18 filing of a Petition under Chapter 9 of the United States Bankruptcy Code following 19 the adoption of a Declaration of a Fiscal Emergency in the City of San Bernardino. These actions were in response to findings that the financial state of the City is such 20 that the health, safety, and well-being of the residents of the City will be jeopardized 21 absent Chapter 9 bankruptcy protection; and 22 WHEREAS, on November 26, 2012, the Mayor and Common Council adopted 23 the Pendency Plan, Resolution 2012-27, which included the Fiscal Year 2012/13 24 General Fund Budget which incorporated by reference the Pre-Pendency Plan 25 including the 9-Point Adjustment Plan adopted on September 5, 2012, and the 26 revised Fire Department adjustments adopted on October 1, 2012 and contemplated 27 the same pendency plan reductions for Fiscal year 2013/14 budget; and WHEREAS, since the filing of the Declaration of Fiscal Emergency on July 18, 28 2012 and the filing of the Petition under Chapter 9 of the United States Bankruptcy 2013-23 Code, the City's negotiating team has met several times with the SBFMA and the City 1 and the SBFMA have exchanged bargaining proposals, financial and other 2 information in order to meet and negotiate in good faith concerning modifications to 3 the terms and conditions of employment consistent with the provisions in the 4 Pendency Plan; and, 5 WHEREAS, the City must present a balanced financial plan, or Pendency 6 Plan, for the General Fund that allows the City to continue to provide effective 7 service, and the Pendency Plan constitutes an emergency within the meaning of the 8 Meyers-Milias-Brown Act, Government Code section 3504.5; and WHEREAS, the City and the SBFMA have reached agreement on certain 9 terms and conditions as set forth below. 10 NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON 11 COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: 12 SECTION 1. The following terms and conditions of employment for the 13 SBPMA bargaining unit members are approved for implementation effective February 14 1, 2013: 15 1. CaIPERS Retirement Formulas: For all bargaining unit employees 16 employed prior to 9/1/11, 3% @ 50; Employees hired from 9/1/2011 17 through 12/31/12, 3% @ 55; Employees hired on or after 1/1/13, 2.7% @ 18 57 consistent with the formulas set forth under the Public Employees 19 Pension Reform Act of 2013 (PEPRA). 20 2. Cost Sharing of CalPERS Benefits: All bargaining unit employees hired on 21 or before 12/31/12 shall contribute 13.989% to the CalPERS benefit 22 representing 50% of the normal cost of benefits as determined by 23 CalPERS for the 2013-2014 fiscal year. Employees hired on or after 24 January 1, 2013, shall contribute 50% of the normal contributions 25 consistent with the provisions of the PEPRA. The provisions of Section 26 414(h)(2) of the Internal Revenue Code (IRC) as implemented by the Common Council on September 22, 1999 by Resolution No. 1999-235, 27 are applicable to contributions designated as employee contributions 28 2013-23 made by the City of San Bernardino to the CalPERS and are hereby 1 incorporated herein. 2 3 3. Elimination of the Employer Paid Member Contribution ("EPMC"): 4 Effective February 1, 2013, the City shall eliminate its nine percent (9%) 5 contribution to the employees for the CalPERS EPMC benefit. 6 4. Reimbursable Overtime for Working Contractual Events: Bargaining Unit 7 members who are required to work special events where the City has 8 contracted with third parties to provide public safety services shall be 9 entitled to be paid overtime (either straight time or premium overtime) in accordance with the contract between the City and the third party. The 10 City and the SBFMA acknowledge that this provision shall not result in any 11 additional costs to the City. 12 13 5. Post-Retirement Medical Benefits: Employees hired on or after January 1, 2013, shall not be eligible to receive payments for retiree medical benefits. 14 The City shall reserve all rights to modify retiree medical plans and the 15 amount of contributions paid by the City. 16 17 6. Education and Professional Development: Current reimbursement policy shall be amended to include attendance at job related training, seminars, 18 conferences, classes, and membership in professional organizations 19 determined to be appropriate by the Fire Chief. Any reimbursement for 20 these activities shall be limited to membership dues, fees for attendance 21 and/or materials only and classes must be taken on the employee's own 22 time. Employees shall not be entitled to be reimbursed for travel 23 expenses. Eligibility for reimbursement shall be within the sole discretion 24 of the Fire Chief and shall be dependent on availability of funding. 25 7. Deferral of Payments for Accrued Leaves: All payments for accrued 26 vacation and holiday to which employees might be entitled prior to 27 separation from employment (sell-backs) shall remain deferred in 28 accordance with the action of the Common Council on August 6, 2012. All 2013-23 payments for cash-outs upon separation for accrued vacation and holiday 1 leave shall remain deferred in accordance with the action of the Common 2 Council on August 6, 2012. 3 4 8. Vacation Leave Accrual Caps: Effective July 1, 2013, a bargaining unit employee may only accrue vacation leave hours as follows: 1 through 5 5 years of service: up to 240 hours; 6 through the completion of 15 years of 6 service: up to 360 hours; 16 through the completion of 20 years of 7 service: up to 480; and, 21 or more years of service: up to 600 hours. Any 8 hours in excess of these caps shall be cashed out on July 1, 2013. Once 9 the cap has been reached, a bargaining unit member may not accrue any 10 additional hours until the employee's accrued leave is below the cap. 11 9. Standby Compensation: Effective February 1, 2013, all bargaining unit 12 employees shall receive $75 per pay period in Standby compensation. 13 This compensation is provided to compensate unit members for 14 responding and coordinating all resources not already assigned to an 15 emergency incident; or for responding and assuming any duties needed to 16 support an ongoing incident. Compensation received under this provision 17 shall not be reported to the CalPERS as special compensation earnable. Standby shall be defined as responding when off duty. 18 19 10.Sick Leave Accrual Caps: Effective February 1, 2013, all bargaining unit 20 employees may only accrue a maximum of 1040 hours of sick leave. All 21 bargaining unit employees with accrued sick leave hours in excess of 900 hours on February 1, 2013, will have those excess hours converted to a 22 separate excess sick leave bank (ESL). Effective July 1, 2013, 24 hours 23 from the ESL shall be cashed out each quarter of a fiscal year. Fifty 24 percent (50%) of any remaining balances in the ESL at the time of 25 separation shall revert to a PEHP trust or a 401(a). Sick leave earned on 26 or after February 1, 2013, is subject to the 1040 cap. At the time of 27 separation, any employee having six (6) or more years of service, shall 28 convert unused sick leave earned after February 1, 2013 to a PEHP or a 2013-23 401(a) as follows: 288 hours or less accrued = no conversion; 289-479 1 hours = 20% of accrued sick leave; 480-959 hours = 25%; 960 or more 2 hours = 35%. 3 4 11.Family Sick Leave: SBFMA bargaining unit members may use unlimited 5 sick leave for the care of an immediate family member. Immediate family member means husband, wife, grandmother, grandfather, mother, father, 6 sister, brother, son, daughter, mother-in-law, father-in-law, sister-in-law, brother-in-law, daughter-in-law, son-in-law, or domestic partner. 8 9 12.Optional Cell Phone Allowance: Employees who are required to have cell phones for conducting City and Department business may elect to 10 purchase and maintain a personal cell phone for that purpose. Employees 11 who select this option are entitled to be reimbursed $65 per month. 12 13 13. Uniform Allowance: The City shall contribute $950 annually toward each Bargaining Unit member's uniform allowance. Employees may request 14 15 reimbursement in July of each Fiscal Year this provision remains in effect. 16 14. Education Incentive Pay: Bargaining Unit members holding a Fire Officer 17 Certification shall be entitled to compensation of $200 per month. 18 Bargaining Unit members holding a Chief Officer Certification or who have completed the National Fire Academy Executive Fire Officer Program shall 19 be entitled to additional compensation of$250 per month. 20 21 15. Items to Remain: The City and the SBFMA agree that there are no 22 proposed changes to the following provisions: Administrative Leave; holiday leave accruals, Charter Section 186 Adjustments; City's 23 contribution to medical/dental/vision/life insurance benefits; and, long term 24 disability. 25 26 16. Term: These modifications to the current Memorandum of Understanding (MOU) shall be in effect from February 1, 2013 through June 30, 2014. 27 The parties agree to reopen negotiations in January 2014 for a successor 28 agreement with the intent to conclude negotiations on or before May 1, 2013-23 2014. During this period, the parties agree to continue negotiating with the 1 intent of reaching a comprehensive Memorandum of Understanding 2 (MOU) including both economic and non-economic benefits. 3 4 17. Bankruptcy Reservation of Rights: The parties agree that all of the rights 5 of the parties are reserved with respect to the existing prepetition Memorandum of Understanding (MOU) and any amendment(s) thereof 6 (collectively, the "Prepetition Agreement") between the parties for 7 bankruptcy purposes. 8 9 18. Favored Nations Clause: The City recognizes that this compensation plan implements reduction or elimination of certain items of compensation 10 and benefits as outlined in the City's Pendency Plan adopted by the Mayor 11 and the Common Council on November 26, 2012 and as directed by the 12 Council. It is the intent of the City to reduce or eliminate compensation 13 and benefits for all bargaining units consistent with the parameters set 14 forth in the City's Pendency Plan and not inconsistent with the City 15 Charter. If any safety unit does not agree to 1) the implementation of the 16 13.989% retirement pick-up, or 2) the elimination of the City's contribution 17 to the EPMC, and/or, 3) if the Mayor and Common Council do not impose such provisions consistent with items # 3, #4, and #9 of the Pendency 18 Plan, the SBFMA will not be required to implement these concessions and 19 the parties agree to reopen negotiations solely on these items. 20 21 22 23 24 25 26 27 28 • 2013-23 1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN 2 BERNARDINO ADOPTING TERMS AND CONDITIONS OF EMPLOYMENT FOR SAN BERNARDINO FIRE MANAGEMENT UNIT. 3 HEREBY CERTIFY that the foregoing Resolution was duly adopted by the 4 5 Mayor and Common Council of the City of San Bernardino at a 6 a oi_nt ada ournea !sn cPi_al meeting thereof, held on the 28th day of January , 7 2013, by the following vote, to wit: 8 Council Members: AYES NAYS ABSTAIN ABSENT 9 10 MARQUEZ x 11 JENKINS x 12 VALDIVIA x 13 SHORETT x 14 KELLEY x 15 16 JOHNSON x 17 MCCAMMACK x 18 19 George n Hanna, ity Clerk 20 The foregoing Resolution is hereby approved this 5 � day of January , 21 2013. 22 23 atrick . Morris, or 24 City of San Bernardino 25 Approved as to form: 26 JAMES F. PENMAN, City Attorney 27 7. By: 28 6/