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DOC ID: 2259
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
Modifications to Terms and Conditions of Employment for the Fire Management Unit
Employees
Financial Impact:
Account Budgeted Amount: <<Insert Amount» Account No. <<Insert Account No.>>
Account Description: <<Insert Account Description
Balance as of: <<Insert 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.
Supporting Documents:
Updated: 1/25/2013 by Georgeann"Gigi" Hanna Packet Pg. 17
1 RESOLUTION NO.
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 and
24 Fiscal Year 2013/14 General Fund Budgets which incorporated by reference the Pre-
25 Pendency Plan including the 9-Point Adjustment Plan adopted on September 5,
26 2012, and the revised Fire Department adjustments adopted on October 1, 2012; and
27 WHEREAS, since the filing of the Declaration of Fiscal Emergency on July 18,
2012 and the filing of the Petition under Chapter 9 of the United States Bankruptcy
28 Code, the City's negotiating team has met several times with the SBFMA and the City
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and the SBFMA have exchanged bargaining proposals, financial and other
1 information in order to meet and negotiate in good faith concerning modifications to
2 the terms and conditions of employment consistent with the provisions in the
3 Pendency Plan; and,
4 WHEREAS, the City must present a balanced financial plan, or Pendency
5 Plan, for the General Fund that allows the City to continue to provide effective
6 service, and the Pendency Plan constitutes an emergency within the meaning of the
7 Meyers-MiIias-Brown Act, Government Code section 3504.5; and
8 WHEREAS, the City and the SBFMA have reached agreement on certain
terms and conditions as set forth below.
9 NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON
10 COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS:
11 SECTION 1. The following terms and conditions of employment for the
12 SBPMA bargaining unit members are approved for implementation effective February
13 1, 2013:
14 1. CalPERS Retirement Formulas: For all bargaining unit employees
15 employed prior to 9/1/11, 3% @ 50; Employees hired from 9/1/2011
16 through 12/31/12, 3% @ 55, Employees hired on or after 1/1/13, 2.7% @
17 57 consistent with the formulas set forth under the Public Employees
18 Pension Reform Act of 2013 (PEPRA).
19 2. Cost Sharing of CalPERS Benefits: All bargaining unit employees hired on
20 or before 12/31/12 shall contribute 13.989% to the CalPERS benefit
21 representing 50% of the normal cost of benefits as determined by
22 CalPERS for the 2013-2014 fiscal year. Employees hired on or after
23 January 1, 2013, shall contribute 50% of the normal contributions
24 consistent with the provisions of the PEPRA. The provisions of Section
25 414(h)(2) of the Internal Revenue Code (IRC) as implemented by the
Common Council on September 22, 1999 by Resolution No. 1999-235,
26
are applicable to contributions designated as employee contributions
27 made by the City of San Bernardino to the CalPERS and are hereby
28 incorporated herein.
3. Elimination of the Employer Paid Member Contribution ("EPMC"):
1 Effective February 1, 2013, the City shall eliminate its nine percent (9%)
2 contribution to the employees for the CalPERS EPMC benefit.
3
4 4. Reimbursable Overtime for Working Contractual Events: Bargaining Unit
members who are required to work special events where the City has
5 contracted with third parties to provide public safety services shall be
6 entitled to be paid overtime (either straight time or premium overtime) in
7 accordance with the contract between the City and the third party. The
8 City and the SBFMA acknowledge that this provision shall not result in any
9 additional costs to the City.
10 5. Post-Retirement Medical Benefits: Employees hired on or after January 1,
11 2013, shall not be eligible to receive payments for retiree medical benefits.
12 The City shall reserve all rights to modify retiree medical plans and the
13 amount of contributions paid by the City.
14 6. Education and Professional Development: Current reimbursement policy
15 shall be amended to include attendance at job related training, seminars,
16 conferences, classes, and membership in professional organizations
17 determined to be appropriate by the Fire Chief. Any reimbursement for
18 these activities shall be limited to membership dues, fees for attendance
19 and/or materials only and classes must be taken on the employee's own
20 time. Employees shall not be entitled to be reimbursed for travel
21 expenses. Eligibility for reimbursement shall be within the sole discretion
of the Fire Chief and shall be dependent on availability of funding.
22
23 7. Suspension of Payments for Accrued Leaves: All payments for accrued
24 vacation and holiday to which employees might be entitled prior to
25 separation from employment (sell-backs) shall remain suspended in
accordance with the action of the Common Council on August 6, 2012. All
26 payments for cash-outs upon separation for accrued vacation and holiday
27 leave shall remain suspended in accordance with the action of the
28 Common Council on August 6, 2012.
8. Vacation Leave Accrual Cans: Effective July 1, 2013, a bargaining unit
1 employee may only accrue vacation leave hours as follows: 1 through 5
2 years of service: up to 240 hours; 6 through the completion of 15 years of
3 service: up to 360 hours; 16 through the completion of 20 years of
4 service: up to 480; and, 21 or more years of service: up to 600 hours. Any
5 hours in excess of these caps shall be cashed out on July 1, 2013. Once
6 the cap has been reached, a bargaining unit member may not accrue any
7 additional hours until the employee's accrued leave is below the cap.
8 9. Standby Compensation: Effective February 1, 2013, all bargaining unit
9 employees shall receive $75 per pay period in Standby compensation.
10 This compensation is provided to compensate unit members for
11 responding and coordinating all resources not already assigned to an
12 emergency incident; or for responding and assuming any duties needed to
support an ongoing incident. Compensation received under this provision
13 shall not be reported to the CalPERS as special compensation earnable.
14
15 10.Sick Leave Accrual Caps: Effective February 1, 2013, all bargaining unit
16 employees may only accrue a maximum of 1040 hours of sick leave. All
17 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
18 separate excess sick leave bank (ESL). Effective July 1, 2013, 24 hours
19 from the ESL shall be cashed out each quarter of a fiscal year. Fifty
20 percent (50%) of any remaining balances in the ESL at the time of
21 separation shall revert to a PEHP trust or a 401(a). Sick leave earned on
22 or after February 1, 2013, is subject to the 1040 cap. At the time of
23 separation, any employee having six (6) or more years of service, shall
24 convert unused sick leave earned after February 1, 2013 to a PEHP or a
25 401(a) as follows: 288 hours or less accrued = no conversion; 289-479
hours = 20% of accrued sick leave; 480-959 hours = 25%; 960 or more
26 hours = 35%.
27
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11.Family Sick Leave: SBFMA bargaining unit members may use unlimited
1 sick leave for the care of an immediate family member. Immediate family
2 member means husband, wife, grandmother, grandfather, mother, father,
3 sister, brother, son, daughter, mother-in-law, father-in-law, sister-in-law,
4 brother-in-law, daughter-in-law, son-in-law, or domestic partner.
5 12.Optional Cell Phone Allowance: Employees who are required to have cell
6 phones for conducting City and Department business may elect to
7 purchase and maintain a personal cell phone for that purpose. Employees
8 who select this option are entitled to be reimbursed $65 per month.
9 13. Uniform Allowance: The City shall contribute $950 annually toward each
10 Bargaining Unit member's uniform allowance. Employees may request
11 reimbursement in July of each Fiscal Year this provision remains in effect.
12
13 14. Education Incentive Pay: Bargaining Unit members holding a Fire Officer
Certification shall be entitled to compensation of $200 per month.
14 Bargaining Unit members holding a Chief Officer Certification or who have
15 completed the National Fire Academy Executive Fire Officer Program shall
16 be entitled to additional compensation of$250 per month.
17
15. Items to Remain: The City and the SBFMA agree that there are no
18 proposed changes to the following provisions: Administrative Leave;
19 holiday leave accruals, Charter 186 Merit Advancements; City's
20 contribution to medical/dental/vision/life insurance benefits; and, long term
21 disability.
22 16. Term: These modifications to the current Memorandum of Understanding
23 (MOU) shall be in effect from February 1, 2013 through June 30, 2014.
24 The parties agree to reopen negotiations in February 2014 for a successor
25 agreement. During this period, the parties agree to continue negotiating
26 with the intent of reaching a comprehensive Memorandum of
27 Understanding (MOU) including both economic and non-economic
28 benefits.
17. Bankruptcy Reservation of Rights: The parties agree that all of the rights
1 of the parties are reserved with respect to the existing prepetition
2 Memorandum of Understanding (MOU) and any amendment(s) thereof
3 (collectively, the "Prepetition Agreement") between the parties for
4 bankruptcy purposes.
5 18. Favored Nations Clause: The City recognizes that this compensation
6 plan implements reduction or elimination of certain items of compensation
7 and benefits as outlined in the City's Pendency Plan adopted by the Mayor
8 and the Common Council on November 26, 2012. It is the intent of the
9 City to reduce or eliminate compensation and benefits for all bargaining
10 units consistent with the parameters set forth in the City's Pendency Plan.
11 If any safety unit does not agree to 1) the implementation of the 13,989%
12 retirement pick-up, or 2) the elimination of the City's contribution to the
13 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 Plan, the
14 SBFMA will not be required to implement these concessions and the
15 parties agree to reopen negotiations solely on these items.
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1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO ADOPTING TERMS AND CONDITIONS OF EMPLOYMENT FOR
2
SAN BERNARDINO FIRE MANAGEMENT UNIT.
3
I 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 meeting thereof, held on the day of
7 2013, by the following vote, to wit:
8 Council Members: AYES NAYS ABSTAIN ABSENT
9
10 MARQUEZ
11 JENKINS
12 VALDIVIA
13 SHORETT
14 KELLEY
15
JOHNSON
16
17 MCCAMMACK
18
19 Georgeann Hanna, City Clerk
20 The foregoing Resolution is hereby approved this day of
21 2013.
22
23 Patrick J. Morris, Mayor
24 City of San Bernardino
25 Approved as to form:
26 JAMES F. PENMAN,
City Attorney p
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CITY OF SAN BERNARDINO — REQUEST FOR COUNCIL ACTION
Staff Report
SUBJECT
Resolutions of the City of San Bernardino approving terms and conditions of
employment between the City of San Bernardino and 1) General Unit Employees
represented by the International Union of Operating Engineers (IUOE); 2) The San
Bernardino Police Management Association (SBPMA); 3) The San Bernardino Fire
Management Association (SBFMA); and, 4) The San Bernardino
Management/Confidential Employees (SBMCE)
FINANCIAL IMPACT
These actions are necessary to implement the provisions of the Pendency Plan.
MOTION: Adopt the four (4) 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.
General Employees Bargaining Unit (IUOE)
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 Engineers for 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.
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June 30, 2010 - Resolution 2010-217 adopted to extend the term of Resolutions 2009-
33 and 2009 -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 follows: Specify that the 36-
hour workweek will not affect merit increases or PERS reporting of monthly salary
for the period of 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 of 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).
Police Management Association (SBPMA)
October 18, 2010 — Resolution 2010-345 approving a Memorandum of Understanding
regarding budget concessions for the period October 1, 2010 through December 31,
2012: Suspension of annual uniform allowance; Reduction of City's monthly
contribution towards health care benefits by $886 per month for Captains and $794
per month for Lieutenants; Establishment of a 2-tier retirement formula of 3% at 55 for
all employees hired into the bargaining unit after January 1, 2011.
August 6, 2009 - Resolution 2009-70 approving a Memorandum of Understanding
implementing concessions for the period April 1, 2009 through June 30, 2010:
Reduction of City's contribution towards health care benefits for Captains by $866 per
month and Lieutenants by $794 per month; Reduction of employee's vacation
balances by 2.7 hours (total 40 hours) and employee's holiday balance by 1.9 hours
(total 28 hours).
Fire Management Association (SBFMA)
December 20, 2010 — Resolution 2010-389 rescinding Resolution 2010-284 and
approving a Memorandum of Understanding implementing the following concessions
for the period December 1, 2010, through June 30, 2012: Deduction of $790 per
month in City contribution towards non-healthcare benefits; Establishment of a 2-tier
retirement formula of 3% at 55 for all employees hired into the bargaining unit after
January 1, 2011.
August 16, 2010 — Resolution 2010-284 amending Resolution 2007-345 and 2009-71
implementing the following concessions for the period September 1, 2010 through
June 30, 2012: Contribute flat rate of $301.81 per month to be used to purchase City-
sponsored medical, dental, vision, and life insurance; Eliminate tier of 10% above the
highest group; Establishment of a 2-tier retirement formula of 3% at 55 for all
employees hired into the bargaining unit after January 1, 2011.
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June 30, 2010 — Resolution 2010-217 adopted to extend the term of Resolution 2009-
71 from June 30, 2010 to August 31, 2010.
April 6, 2009 - Resolution 2009-71 amending Resolution 2007-345 implementing the
following concession for the period April 1, 2009 through June 30, 2010: 10%
reduction in base salary.
August 4, 2008 — Resolution 2008-306 amending Resolution 2007-345 implementing
the following concession for the period of August 1, 2008 through June 30, 2009:
Reduce Holiday accrual rate from 15.75 hours per month to 6.28 per month.
Management/Confidential Bargaining Unit (SBMCE)
July 2, 2012 - Resolution 2012-188 adopted to extend the term of Resolution 2010-276
until a successor MOU is adopted by the Mayor and Common Council.
August 16, 2010 - Resolution 2010-276 adopted to amend Resolutions 2009-345 and
2009-35 to implement the following concessions for the period September 1, 2010
through June 30, 2012: Negotiation of 186 formula with no financial impact; Reduction
of employees' vacation balance by 2.7 hours (total 40 hours) and employees' holiday
balance by 1.9 hours (total 28 hours) through June 30, 2012; Suspension of vacation,
holiday, and sick leave sell-back through June 30, 2012.
June 30 2010 - Resolution 2010-217 adopted to extend term of Resolutions 2009-35
from June 30, 2010 through August 31, 2010.
February 17, 2009 - Resolution 2009-35 amending Resolution 2007-345
implementing the following concessions for the period of March 1, 2009 through June
30, 2010: An additional 5% concession for a 10% total (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).
August 4, 2008 - Resolution 2008-306 amending Resolution 2007-345 implementing
the following concessions for the period August 1, 2008 through June 30, 2009: 5%
reduction in base salary; Reduction of Fire Management holiday accrual rates from
15.75 hours per month to 6.28 hours per month.
BACKGROUND
As a result of the City's dire financial condition, the City filed for Chapter 9 Bankruptcy
following the declaration of a fiscal emergency in the City of San Bernardino on July
18, 2012. 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 wouldl be
jeopardized absent Chapter 9 bankruptcy protection. Since then, the City has
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presented its financial plan or Pendency Plan in bankruptcy court and must implement
now the Plan in order to preserve its Chapter 9 bankruptcy protection.
The necessity of implementing the City's Pendency Plan constitutes an emergency
within the meaning of the Meyers-Milias-Brown Act, Government Code section 3504.5.
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.
As the City of San Bernardino works through the bankruptcy process, the City's
negotiating team has met and conferred in good faith with the representatives from the
General Unit, the Police Management Unit, the Fire Management Unit, and the
Management/Confidential Unit over the past several months regarding the terms and
conditions of employment for the period commencing February 1, 2013, through June
30, 2014. The terms and conditions reached with each of the four (4) bargaining units
are consistent with the applicable provisions of the Pendency Plan and will assist in
balancing the City's General Fund through the pendency period. Parties agree to
continue to meet and confer over the terms of a comprehensive MOU including all
non-economic language that will coincide with the long-term Plan of Adjustment.
The City and the General Unit, the Police Management Association, the Fire
Management Association, and the Management/Confidential Unit have agreed on
terms and conditions which include all economic concessions set forth in the
Pendency Plan. It is recommended that the following actions be approved:
• Resolution No. , Resolution of the Mayor and Common Council of the City
of San Bernardino Adopting Modifications to Terms and Conditions of
Employment for the General Unit Employees, represented by the International
Union of Operating engineers (IUOE);
• Resolution No. , Resolution of the Mayor and Common Council of the City
of San Bernardino Adopting Modifications to Terms and Conditions of
Employment for the San Bernardino Police Management Association;
• Resolution No. _, Resolution of the Mayor and Common Council of the City
of San Bernardino Adopting Modifications to Terms and Conditions of
Employment for the San Bernardino Fire Management Association; and,
• Resolution No. _, Resolution of the Mayor and Common Council of the City
of San Bernardino Adopting Modifications to Terms and Conditions of
Employment for the San Bernardino ManagemenUConfidential Unit.
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