HomeMy WebLinkAbout03.E- City Clerk DOC ID: 2260
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 Management/Confidential Unit
Employees
Financial Impact:
Account Budgeted Amount: «Inert Amount>> Account No. <<Insert Account No»
Account Description: <<htsert 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.
Supporting Documents:
Updated: 1/25/2013 by Georgeann"Gigi"Hanna � :llh
I 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 MANAGEMENTICONFIDENTIAL ASSOCIATION (SBCMA).
4
5 WHEREAS, in meeting its commitments to the citizens of the City of San
Bernardino to maintain a safe and secure community while providing access to
6
cultural, recreational and governmental activities and institutions for all citizens, the
7 City has employed a workforce; and
8 WHEREAS, most City employees are entitled to collectively bargain with the
9 City regarding terms and conditions of employment; and
10 WHEREAS, as nearly two-thirds of the City's General Fund is tied directly to
11 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
City's financial situation is dire with no available cash to meet on-going operating
14
expenses, including payroll, and no revenue or other funding sources are available to
15 balance the City's budget and address prior years' deficits; and
16 WHEREAS, on July 18, 2012, the Mayor and Common Council directed the
17 filing of a Petition under Chapter 9 of the United States Bankruptcy Code following
18 the adoption of a Declaration of a Fiscal Emergency in the City of San Bernardino.
19 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
WHEREAS, on November 26, 2012, the Mayor and Common Council adopted
22
the Pendency Plan, Resolution 2012-27, which included the Fiscal Year 2012/13 and
23 Fiscal Year 2013/14 General Fund Budgets which incorporated by reference the Pre-
24 Pendency Plan including the 9-Point Adjustment Plan adopted on September 5,
25 2012, and the revised Fire Department adjustments adopted on October 1, 2012; and
26 WHEREAS, since the filing of the Declaration of Fiscal Emergency on July 18,
27 2012 and the filing of the Petition under Chapter 9 of the United States Bankruptcy
28 Code, the City's negotiating team has met on several occasions with the SBCMA and
have exchanged bargaining proposals, financial and other information in order to
1 negotiate in good faith concerning modifications to the terms and conditions of
2 employment consistent with the provisions in the Pendency Plan; and,
3 WHEREAS, the City must present a balanced financial plan, or Pendency
4 Plan, for the General Fund that allows the City to continue to provide effective
5 service, and the Pendency Plan constitutes an emergency within the meaning of the
6 Meyers-Milias-Brown Act, Government Code section 3504.5; and
7 WHEREAS, after having met, the City and the SBCMA have reached
8 agreement on certain terms and conditions as set forth below.
NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON
9 COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS:
10
11 SECTION 1. The following terms and conditions of employment for San
Bernardino Management/Confidential Employees Unit members are approved for
12 implementation effective February 1, 2013:
13
14 1. CalPERS Retirement Formulas: For all employees employed on or before
15 10/3/11, 2.7% @ 55; Employees hired on or after 10/4/11 to 12/31/12, 2%
@ 55; Employees hired on or after 1/1/13, 2% @ 62.
16
17 2. Cost Sharing of CalPERS Benefits: All employees hired on or before
18 December 31, 2012 shall contribute 9.304% to the CalPERS benefit
19 representing 50% of the normal cost of benefits as determined by
CalPERS for the 2013-2014 fiscal year. Employees hired on or after
20 January 1, 2013, shall contribute 50% of the normal contributions
21 consistent with the provisions of the Public Employees Pension Reform
22 Act of 2013 (PEPRA). The provisions of Section 414(h)(2) of the Internal
23 Revenue Code (IRC) are applicable to contributions designated as
24 employee contributions made by the City of San Bernardino to the
25 CalPERS and are hereby incorporated herein.
26 3. Salary Concessions: All salary concessions previously agreed to by the
27 City and the SBCMA shall be restored to their prior level and all bargaining
28 unit employees will resume working a forty (40) hour week. Education
Tuition Assistance will no longer be suspended. Bargaining unit members
1 who are so entitled shall continue to receive eighty (80) hours per fiscal
2 year of administrative leave.
3
4 4. Post-Retirement Medical Benefits: Employees hired on or after January 1,
2013, shall not be eligible to receive payments for retiree medical benefits.
5 The City shall reserve all rights to modify retiree medical plans and the
6 amount of contributions paid by the City.
7
8 5. Suspension of Payments for Accrued Leaves: All payments for accrued
9 sick leave, vacation, and holiday leave time to which employees may be
entitled prior to separation from employment (sell-backs) shall remain
10 suspended in accordance with the action of the Common Council on
11 August 6, 2012. All payments for cash-outs upon separation for all
12 accrued sick, vacation and holiday leave shall remain suspended in
13 accordance with the action of the Common Council on August 6, 2012.
14 6. Vacation Leave Accrual Caps: Effective July 1, 2013, a bargaining unit
15 employee may only accrue vacation leave hours as follows: 1 through 5
16 years of service: up to 160 hours; 6 through the completion of 15 years of
17 service: up to 240 hours; 16 through the completion of 20 years of
18 service: up to 320; and, 21 or more years of service: up to 400 hours. Any
19 hours in excess of these caps shall be cashed out on July 1, 2013. Once
20 the cap has been reached, a bargaining unit member may not accrue any
21 additional hours until the employee's accrued leave is below the cap.
22 7. Sick Leave Accrual Caps: Effective February 1, 2013, all bargaining unit
23 employees may only accrue a maximum of 1040 hours of sick leave. All
24 bargaining unit employees with accrued sick leave hours in excess of 900
25 hours on February 1, 2013, will have those excess hours converted to a
separate excess sick leave bank (ESL). Effective July 1, 2013, 24 hours
26 from the ESL shall be cashed out each quarter of the fiscal year. Fifty
27 percent (50%) of any remaining balances in the ESL at the time of
28 separation shall revert to a PEHP trust or a 401(a). Sick leave earned on
I or after February 1, 2013, is subject to the 1040 cap. At the time of
separation, any employee having six (6) or more years of service, shall
2 convert unused sick leave earned after February 1, 2013 to a PEHP or a
3 401(a) as follows: 288 hours or less accrued = no conversion; 289-479
4 hours = 20% of accrued sick leave; 480-959 hours = 25%; 960 or more
5 hours = 35%.
6 8. Family Sick Leave: SBCMA bargaining unit members may use unlimited
7 sick leave for the care of an immediate family member. Immediate family
8 member means husband, wife, grandmother, grandfather, mother, father,
9 sister, brother, son, daughter, mother-in-law, father-in-law, sister-in-law,
10 brother-in-law, daughter-in-law, son-in-law, or domestic partner.
11 9. Standard Tour of Duty: The standard tour of duty for SBCMA employees
12 assigned to City Hall (exclusive of the City Attorney's Office) shall be a
13 4/10 work schedule, (a forty (40) hour workweek consisting of four (4) ten
14 (10) hour days with Fridays off). The City may change the standard tour of
15 duty as required. The City shall generally give employees two (2) weeks'
16 notice of any proposed changes to the standard tour of duty. Emergency
17 situations are exempted from the two (2) weeks' notice provision.
18 10.Term: The terms and conditions set forth herein shall be in effect from
19 February 1, 2013, through June 30, 2014, and the Pre-petition Agreement
20 shall continue to apply except as expressly set forth herein. The City and
21 the SBCMA agree to reopen negotiations in January 2014 for a successor
agreement. The City and the SBCMA agree to continue negotiating with
22 the intent of reaching a comprehensive agreement including both
23 economic and non-economic benefits and to discuss relative Chapter 9
24 Plan of Adjustment issues.
25
26 11.Bankruptcy Reservation of Rights: The parties agree that all of the rights of
the parties are reserved with respect to the existing prepetition
27 Memorandum of Understanding and any amendment(s) thereof
28
(collectively, the "Prepetition Agreement") between the parties for
1
bankruptcy p y purposes.
2
3 12.Favored Nations Clause: The City recognizes that this compensation plan
4 implements a reduction or elimination of certain items of compensation
5 and benefits as outlined in the City's Pendency Plan adopted by the Mayor
and Common Council on November 26, 2012. It is the intent of the City to
6 reduce or eliminate compensation and benefits for all bargaining units
7 consistent with the parameters set forth in the City's Pendency Plan. If any
8 miscellaneous unit does not agree to the implementation of the 9.304%
9 retirement pick-up, or if any safety group does not agree to, or the
10 Common Council does not implement Items #3 #4 or #9 of the Pendency
11 Plan, the SBCMA will not be required to implement the 9.304% concession
12 and the parties agree to reopen negotiations solely on this item.
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28 ///
1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
2 BERNARDINO ADOPTING TERMS AND CONDITIONS OF EMPLOYMENT FOR
SAN BERNARDINO MANAGEMENT/CONFIDENTIAL ASSOCIATION (SBCMA).
3
4 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the
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
16 JOHNSON
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
27
By: t
28
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.
Page I
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 Mann ement Association (SBPMA)
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.
Page 2
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.
ManagemenUConfidential 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
Page 3
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 Management/Confidential Unit.
Page 4