HomeMy WebLinkAbout03.A- City Clerk DOC ID: 2264 A
CITY OF SAN BERNARDINO—REQUEST FOR COUNCIL ACTION
Agreement/Contract Amendment
From: Georgeann "Gigi" Hanna M/CC Meeting Date: 01/28/2013
Prepared by: Georgeann "Gigi" Hanna,
Dept: City Clerk Ward(s): All
Subject:
Resolution of the Mayor and Common Council of the City of San Bernardino Adopting Terms
and Conditions of Employment for the Mid-Management Employees Represented by the San
Bernardino Public Employees Association (SBPEA), in Accordance with the City's Pendency
Plan
Financial Impact:
Account Budgeted Amount: <<Insert Amount» Account No. «Inert Account No»
Account Description: «Inert Account Description
Balance as of. «Inert Date>>
Balance after approval of this item: <<Insert Amount>>
Please note this balance does not indicate available funding. It does not include non-encumbered
reoccurring expenses or expenses incurred,but not yet processed.
Motion: Adopt Resolution
Synopsis of Previous Council Action:
The council voted in Open Session to add this item to the January 24 agenda: The
Mayor and Council determine that the need to consider and take action on the unilateral
imposition (of terms and conditions of employment for the Police, Fire and Mid
Management bargaining units) arose after the posting of the agenda." The basis of this
finding was that the January 23, 2013 mediation in the United States Bankruptcy Court
concluded with no agreement between the City and the bargaining units involved
Following Closed Session on January 24, the meeting was continued until 3:30 p.m.
Monday, January 28 in the Council Chamber.
Supportine Documents:
Updated: 1/25/2013 by Georgeann"Gigi" Hanna A
RESOLUTION NO.
1
2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO ADOPTING TERMS AND CONDITIONS OF EMPLOYMENT FOR
3 THE MID-MANAGEMENT UNIT EMPLOYEES REPRESENTED BY THE SAN
BERNARDINO PUBLIC EMPLOYEES ASSOCIATION (SBPEA), CONSISTENT
4 WITH CERTAIN PROVISIONS OF THE CITY'S PENDENCY PLAN, ADOPTED BY
THE MAYOR AND COMMON COUNCIL ON NOVEMBER 26, 2012 BY
5
RESOLUTION NO. 2012-27.
6
WHEREAS, in meeting its commitments to the citizens of the City of San
7 Bernardino to maintain a safe and secure community while providing access to
8 cultural, recreational and governmental activities and institutions for all citizens, the
9 City has employed a workforce; and
10 WHEREAS, most City employees are entitled to collectively bargain with the
11 City regarding terms and conditions of employment; and
12 WHEREAS, as nearly two-thirds of the City's General Fund is tied directly to
13 the salaries and benefits paid to City employees, the City's labor costs for the 2012-
14 2013 Fiscal Year (FY) exceed the City's projected revenues; and
WHEREAS, despite cost savings measures previously taken by the City, the
15 City's financial situation is dire with no available cash to meet on-going operating
16 expenses, including payroll, and no revenue or other funding sources are available to
17 balance the City's budget and address prior years' deficits; and
18 WHEREAS, on July 18, 2012, the Mayor and Common Council directed the
19 filing of a Petition under Chapter 9 of the United States Bankruptcy Code following
20 the adoption of a Declaration of a Fiscal Emergency in the City of San Bernardino.
21 These actions were in response to findings that the financial state of the City is such
22 that the health, safety, and well-being of the residents of the City will be jeopardized
absent Chapter 9 bankruptcy protection; and
23 WHEREAS, on November 26, 2012, the Mayor and Common Council adopted
24 the Pendency Plan, Resolution 2012-27, which included the Fiscal Year 2012/13 and
25 Fiscal Year 2013/14 General Fund Budgets which incorporated by reference the Pre-
26 Pendency Plan including the 9-Point Adjustment Plan adopted on September 5,
27 2012, and the revised Fire Department adjustments adopted on October 1, 2012; and
28
12013
WHEREAS, since the filing of the Declaration of Fiscal Emergency on July 18,
1 2012 and the filing of the Petition under Chapter 9 of the United States Bankruptcy
2 Code, the City's negotiating team has met twice with the SBPEA and has provided
3 bargaining proposals, financial and other information responsive to the SBPEA's
4 numerous requests in an attempt to meet and negotiate in good faith concerning
5 modifications to the terms and conditions of employment consistent with the
6 provisions in the Pendency Plan; and,
7 WHEREAS, the SBPEA had notified the City's Negotiating Team that they
8 would not attend the negotiation meeting scheduled to be held on January 8, 2013
unless and until the City provided documents and information, the majority of which
9 had been provided months earlier to the SBPEA's attorneys by the City's bankruptcy
10 attorneys in connection with the City's Chapter 9 bankruptcy case; and,
11 WHEREAS, despite the production of these documents responsive to the
12 SBPEA requests for information, the SBPEA Attorney refused to respond the City's
13 Bankruptcy Attorney's to further discuss the information demands; and,
14 WHEREAS, on January 7, 2013, the City provided additional information,
15 including financial information, responsive to their request; and,
16 WHEREAS, the SBPEA failed to appear on January 8, 2013 for the scheduled
negotiation meeting; and,
17 WHEREAS, between January 8 and January 15, 2013, the City made three (3)
18 further requests to the SBPEA to meet and negotiate and the SBPEA failed to
19 respond to these requests; and,
20 WHEREAS, on January 15, 2013, the City's Chief Negotiator sent a letter to
21 the Attorney for the SBPEA requesting a meeting to negotiate and informing the
22 SBPEA that as the City's Pendency Plan contemplated an implementation date of
23 January 1, 2013, the City's negotiating team would be recommending to the Common
24 Council that the following provisions of the City's Pendency Plan be timely
25 implemented: 1) 9.304% employee pick-up of the CalPERS normal benefit costs
[Pendency Plan #5]; 2) All vacation, sick leave, holiday paid time off payments (cash-
26 out and sell-back) be suspended through June 30, 2014 [Pendency Plan # 13]; 3)
27 limits on accrued sick leave of 1040 hours; and, 4) Elimination of retiree medical
28 benefits for all employees hired on or after January 1, 2013 [Pendency Plan #8]; and,
WHEREAS, on January 22, 2013, the City received a communication from the
1 SBPEA requesting additional information and further refusing to meet until the City
2 had responded to all document requests; and,
3 WHEREAS, despite extensive production of documents by the City's
4 negotiating team and the City's bankruptcy attorneys, the SBPEA continues to refuse
5 to meet and negotiate or respond to any of the City's proposals presented to them
6 during the two (2) previous meetings; and,
7 WHEREAS, it is apparent that any further efforts by the City to attempt to
8 schedule and meet with the SBPEA would be futile; and,
WHEREAS, the City must present a balanced financial plan, or Pendency
9 Plan, for the General Fund that allows the City to continue to provide effective
10 service, and the failure of the City and the SBPEA to reach agreement regarding the
11 implementation of certain Pendency Plan provisions necessary for the City to
12 continue to provide services, constitutes an emergency within the meaning of the
13 Meyers-Milias-Brown Act, Government Code section 3504.5; and,
14 WHEREAS, based upon the SBPEA's continual refusal to respond to or meet
15 with the City, and it's refusal to respond to the City's January 15, 2013, letter
16 requesting to negotiate and providing notice that the City's negotiating team intended
17 to present to the Common Council for adoption specific Pendency Plan provisions,
the City may implement certain provisions of its Pendency Plan where further efforts
18 to negotiate would be impracticable;
19 NOW THEREFORE, be it resolved by the Mayor and Common Council of
20 the City of San Bernardino as follows:
21 SECTION 1. The following terms and conditions of employment for bargaining
22 unit members represented by the SBPEA are adopted for implementation effective
23 February 1, 2013:
24 1. Cost Sharing of CalPERS Benefits: All bargaining unit employees
25 represented by the SBPEA hired on or before 12/31/12 shall contribute
26 9.304% to the costs of the California Public Employee Retirement System
27 (CaIPERS) benefit representing fifty-percent (50%) of the normal costs of
28 benefits as determined by CalPERS for the 2013-2014 fiscal year.
Employees hired on or after January 1, 2013, shall contribute 50% of the
1 normal contributions consistent with the provisions of the Public
2 Employees Pension Reform Act of 2013 (PEPRA). The provisions of
3 Section 414(h)(2) of the Internal Revenue Code (IRC) as implemented by
4 the Mayor and Common Council on September 22, 1999 by Resolution
5 No. 1999-235, are applicable to contributions designated as employee
6 contributions made by the City of San Bernardino to the CalPERS and are
7 hereby incorporated herein. [Pendency Plan # 5]
8 2. Suspension of Payments for Accrued Leaves: All payments for accrued
9 sick leave, holiday, and vacation leave to which employees may be
10 entitled prior to separation from employment (sell-backs) shall remain
11 suspended in accordance with the action of the Mayor and the Common
12 Council on August 6, 2012. All payments for cash-outs upon separation
for accrued sick, holiday, and vacation leave shall remain suspended in
13 accordance with the action of the Common Council on August 6, 2012.
14 [Pendency Plan # 13]
15
16 3. Limits on Sick Leave Accruals and Cash-Outs: Bargaining unit members
17
shall only accrue a maximum of 1040 hours of sick leave with no cash-
outs at the time of separation. There shall be no cash-outs of any sick
18 leave accruals in excess of the 1040 hours.
19
20 4. Salary Concessions: All salary concessions previously agreed to by the
21 City and the SBPEA shall be reversed and all bargaining unit employees
will resume working a forty (40) hour week.
22
23 5. Nothing in this Resolution is intended to or constitutes an assumption or
24 rejection (as those terms are used in the Bankruptcy Code) of any
25 agreement or Memorandum of Understanding (MOU), if any, between the
SBPEA and the City. The City reserves the right to take any such action
26 at any time in the future.
27
28 /!/
1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
2 BERNARDINO ADOPTING THE TERMS AND CONDITIONS OF EMPLOYMENT
FOR THE MID-MANAGEMENT UNIT EMPLOYEES REPRESENTED BY THE SAN
3 BERNARDINO PUBLIC EMPLOYEES ASSOCIATION (SBPEA), CONSISTENT
WITH CERTAIN PROVISIONS OF THE CITY'S PENDENCY PLAN ADOPTED BY
4 THE MAYOR AND COMMON COUNCIL ON NOVEMBER 26, 2012 BY
5 RESOLUTION NO. 2012-27.
6 1 HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor
7 and Common Council of the City of San Bernardino at a meeting
8 thereof, held on the_day of 2013, by the following vote, to wit:
9 Council Members: AYES NAYS ABSTAIN ABSENT
10 MARQUEZ
11
JENKINS
12
VALDIVIA
13
14 SHORETT
15 KELLEY
16 JOHNSON
17 MCCAMMACK _
18
19 Georgeann Hanna, City Clerk
20 The foregoing Resolution is hereby approved this day of , 2013.
21
22 Patrick J. Morris, Mayor
23 City of San Bernardino
24 Approved as to form:
JAMES F. PENMAN,
25 City Attorney
26 By; Q
27
28
CITY OF SAN BERNARDINO — REQUEST FOR COUNCIL ACTION
Staff Report
SUBJECT
Resolutions of the City of San Bernardino adopting terms and conditions of
employment for the 1) Fire Safety Unit Employees Represented by the San Bernardino
City Professional Firefighters, Local 891 (SBCPF); 2) Police Safety Employees
Represented by the San Bernardino Police Officers Association (SBPOA); and, 3) the
Mid-Management Employees represented by the San Bernardino Public Employees
Association (SBPEA), pursuant to California Government Code § 3504.5 and
consistent with certain provisions of the City's Pendency Plan, adopted by the Mayor
and Common Council on November 26, 2012 by Resolution No. 2012-27.
FINANCIAL IMPACT
These actions are necessary to implement the provisions of the Pendency Plan.
MOTION: Adopt the three (3) Resolutions.
SYNOPSIS OF PREVIOUS COUNCIL ACTION
December 17, 2012 -The Mayor and Common Council authorize the implementation of
the Public Employees' Pension Reform Act of 2013 (PEPRA) and related Public
Employees' Retirement Law (PERL) amendments which shall become applicable and
effective January 1, 2013.
November 26, 2012 -The Mayor and Common Council adopted the Pendency Plan,
Resolution 2012-27, which included the Fiscal Year 2012/13 and Fiscal Year 2013/14
General Fund Budgets which incorporated by reference the Pre-Pendency Plan
including the 9-Point Adjustment Plan adopted on September 5, 2012, and the revised
Fire Department adjustments adopted on October 1, 2012.
San Bernardino Police Officers Association (SBPOA)
August 16, 2010 - Resolution 2010-275 amending Resolution 2006-291 implementing
the following concessions of the period August 1, 2010 through December 31, 2012:
Negotiation of 186 formula with no financial impact; Establishment of a 2-tier
retirement formula of 3% at 55 for all employees hired into the bargaining unit after
January 1, 2011; Suspension of uniform allowance; Reduction of City's contribution
towards healthcare benefits by $400 per month per employee through June 30, 2012;
Suspension of vacation, holiday, and sick leave accruals through June 30, 2012,
March 9, 2009 — Resolution 2009-48 amending Resolution 2006-291 implementing the
following concessions for the period of March 16, 2009, through June 30, 2010:
Reduction of City's contribution towards healthcare benefits by $400 per month per
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employee; Suspension of uniform allowance; Suspension of vacation, holiday, and
sick leave accruals.
San Bernardino Fire Safety Unit (SBCPF)
February 22, 2011- Resolution 2011-33 imposed the following after impasse was
reached in negotiations: Salary concession of $1,432.88 per month from February 28,
2011, through June 30, 2011; Employees hired after February 22, 2011 to pick up
EPMC over a 15-year period (9% currently paid by City); initially new employees pick-
up 9% of the EPMC, then after 1 year of full-time employment, the City pays 1%, after
5 years, an additional 2%; after 10 years, additional 3%; and, after 15 years, additional
6%; 2 tier retirement formula — 3% at 55 for all employees hired after the approval of
the amendment; Employees will sell back 48 hours of vacation before June 30, 2011;
Employees hired on or before June 30, 2010, will accrue sick leave at a rate of 4 hours
per semi-monthly pay period for employees scheduled 40 hours per week or 6 hours
per semi-monthly pay period for shift employees. Employees hired after July 1, 2010
shall have a maximum sick leave balance of 480 hours; flat City contribution to health
plan of $571.66 for employee only and $992.56 for employee +1/family member per
month; Overtime paid in accordance with FLSA standards. Imposition being litigated.
Judgment against City decided on March 2, 2012. Currently on appeal. No
concessions exist at this time.
June 1, 2009— Resolution 2009-140 amending Resolution 2006-66 to implement the
following concessions for the period July 1, 2009 through June 20, 2010: Plan equal to
a 8.7% reduction in base salary; Imposition of a mandatory 48 hour vacation sell back
per fiscal year during the agreement.
Mid-Management Bargaining Unit (SBPEA)
July 2, 2012 - Resolution 2012-188 adopted to extend the term of Resolution 2011-207
until a successor MOU is adopted by the Mayor and Common Council.
June 10, 2011- Resolution 2011-207 adopted to approve a Memorandum of
Understanding (MOU)with the International Union of Operating Engineersfor the
General Employee Unit,which included the following concessions for the period
January 1, 2011 through June 30, 2012: Continuation of the 10% concessions;
Freezing of all merit increases.
August 2, 2010-Resolution 2010-254 adopted to extend the term of Resolutions
2009-33 and 2009-68 from July 31, 2010 through August 15, 2010.
June 30, 2010-Resolution 2010-217adopted to extend the term of Resolutions 2009-33
and2009-68 from June 30, 2010 through July 31, 2010.
April 6, 2009- Resolution 2009-68 to amend Resolution 2005-75 to continue the 10%
concession and to clarify Resolution 2009-33 as following: Specify that the 36-hour
workweek will not affect merit increases or PERS reporting of monthly salary for the
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period March 1, 2009, through June 30, 2010.
February 17, 2009 - Resolution 2009-33 to amend Resolution 2005-75 to implement
the following concessions for the period March 1, 2009 through June 30, 2010: 10%
concession (36-hour workweek resulting in a reduction in compensation by 4 hours
per week; employees not participating for health or safety reasons and City Attorney
staff receive 4 hours of concession leave per week with no cash value or expiration
date).
BACKGROUND
As a result of the City's dire financial condition, the City filed for Chapter 9 Bankruptcy
following the July 18, 2012 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 was such that the health, safety, and well-being of the residents of the City would
be jeopardized absent Chapter 9 bankruptcy protection. Since then, the City has
presented its financial plan or Pendency Plan in bankruptcy court and must implement
the Plan in order to preserve its Chapter 9 bankruptcy protection.
The City's Pendency Plan constitutes an emergency within the meaning of the
Meyers-Milias-Brown Act, Government Code section 3504.5, allowing a public agency,
in cases of emergency, to unilaterally implement or adopt modifications to existing
agreements. It also serves as a roadmap until the bankruptcy court approves a long-
term Plan of Adjustment. The Plan of Adjustment will comprehensively restructure the
City's debts and obligations and set the City on the path to solvency.
During the past several months, as San Bernardino works through the bankruptcy
process, the City's negotiating team has attempted to meet and negotiate in good faith
with the representatives from the San Bernardino Police Officers Association (SBPOA)
and the Mid-Management Unit (SBPEA) in order to modify the terms and conditions of
employment consistent with the provisions of the Pendency Plan. Despite numerous
requests, the Fire Safety bargaining unit (SBCPF) has refused to meet with the City's
negotiating team and instead elected to proceed to mediation through the bankruptcy
court. The SBPOA did meet with the City's negotiating team on three (3) occasions,
but subsequently elected to participate in voluntary mediation with the SBCPF.
The City and the SBPOA and the SBCPF participated in voluntary mediation on
January 11, 17, and 24, 2013 with the Honorable Scott Clarkson serving as mediator.
The SBPEA met with the City's Negotiating team on two (2) occasions and thereafter,
the SBPEA failed to appear on January 8, 2013 for a scheduled negotiation meeting.
Between January 8 and January 15, 2013, the City made three (3) further requests to
the SBPEA to meet and negotiate and the SBPEA failed to respond to these requests.
On January 15, 2013, the City's Chief Negotiator sent a letter to the Attorney for the
SBPEA requesting a meeting to negotiate and informing the SBPEA that, as the City's
Pendency Plan contemplated an implementation date of January 1, 2013, the City's
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negotiating team would be recommending to the Common Council that the following
provisions of the City's Pendency Plan be timely implemented: 1) 9.304% employee
pick-up of the Ca1PERS normal benefit costs [Pendency Plan #5]; 2) All vacation, sick
leave, holiday paid time off payments (cash-out and sell-back) be suspended through
June 30, 2014 [Pendency Plan # 13]; and, 3) Elimination of retiree medical benefits for
all employees hired on or after January 1, 2013 [Pendency Plan #8];
Despite mediation efforts with the SBCPF and the SBPOA, and the City's continual
unsuccessful attempts to meet with the SBPEA, the City and the three (3) bargaining
units have failed to reach agreement. In order to protect the financial stability of the
City and insure protection from its creditors during the Chapter 9 bankruptcy
proceedings, it is imperative that the following actions are approved in order to
implement the economic concessions included in the Pendency Plan. Accordingly, it is
recommended that the following actions be approved:
_Resolution of the Mayor and Common Council of the City of San Bernardino
Adopting Terms and Conditions of Employment for the Fire Safety Unit Employees
Represented by the San Bernardino City Professional Firefighter, Local 891,
Consistent with Certain Provisions of the City's Pendency Plan, Adopted by the Mayor
and Common Council on November 26, 2012 by Resolution No. 2012-27.
_Resolution of the Mayor and Common Council of the City of San Bernardino
Adopting Terms and Conditions of Employment for the Police Safety Employees
Represented by the San Bernardino Police Officers Association (SBPOA), Consistent
with Certain Provisions of the City's Pendency Plan, Adopted by the Mayor and
Common Council on November 26, 2012 by Resolution No. 2012-27.
_Resolution of the Mayor and Common Council of the City of San Bernardino
Adopting Terms and Conditions of Employment for the Mid-Management Employees
Represented by the San Bernardino Public Employees Association (SBPEA),
Consistent with Certain Provisions of the City's Pendency Plan, Adopted by the Mayor
and Common Council on November 26, 2012 by Resolution No. 2012-27.
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