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HomeMy WebLinkAbout07.A- City Clerk DOC ID: 2258 CITY OF SAN BERNARDINO—REQUEST FOR COUNCIL ACTION `�— Agreement/Contract Amendment From: Georgeann "Gigi" Hanna M/CC Meeting Date: 02/04/2013 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 Police Management Unit Employees. (At Meeting of January 28, 2013, Item Continued to February 4,2013.) 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 the 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. Suyvortine Documents: Updated: 1/29/2013 by Linda Sutherland Packet Pg. 28 Entered Into kec, at MCC/CDC Mfg;-21(1113 0y: _-2z -6c 0 11 , agenda item No. 7,4-- ,y; � tv rlerk/CDC Secretary 1 lily Ot San Bernardino 2 RESOLUTION NO. 3 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO ADOPTING TERMS AND CONDITIONS OF EMPLOYMENT FOR 4 SAN BERNARDINO POLICE MANAGEMENT ASSOCIATION (SBPMA) UNIT 5 EMPLOYEES. 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 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 12 the salaries and benefits paid to City employees, the City's labor costs for the 2012- 13 2013 Fiscal Year (FY) exceed the City's projected revenues; and 14 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 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. 20 These actions were in response to findings that the financial state of the City is such 21 that the health, safety, and well-being of the residents of the City will be jeopardized 22 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 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 that 27 contemplated the same pendency plan reductions for Fiscal Year 2013/14 budget; 28 and n� e c a!y/i3 ?R- WHEREAS, since the filing of the Declaration of Fiscal Emergency on July 18, I 2012 and the filing of the Petition under Chapter 9 of the United States Bankruptcy 2 Code, the City's negotiating team has met several times with the SBPMA and the City 3 and the SBPMA have exchanged bargaining proposals, financial and other 4 information in order to meet and negotiate in good faith concerning modifications to 5 the terms and conditions of employment consistent with the provisions in the 6 Pendency Plan; and 7 WHEREAS, the City must present a balanced financial plan, or Pendency 8 Plan, for the General Fund that allows the City to continue to provide effective service, and the Pendency Plan constitutes an emergency within the meaning of the 9 Meyers-Milias-Brown Act, Government Code section 3504.5; and 10 WHEREAS, the City and the SBPMA have reached agreement on terms and 11 conditions as set forth below. 12 NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON 13 COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: 14 SECTION 1. The following terms and conditions of employment for the 15 SBPMA bargaining unit members are approved for implementation effective February 16 1, 2013: 17 1. CalPERS Retirement Formulas: For all bargaining unit employees 18 employed prior to 9/1/11, 3% @ 50; For all bargaining unit employees 19 hired after 9/1/11, 3% @ 55; For all bargaining unit employees hired on or 20 after 1/1/13 and who are also deemed "new members" within the meaning 21 of the Public Employees Pension Reform Act of 2013 (PEPRA). 2.7% @ 57. 22 23 2. _Cost Sharing of CalPERS Benefits: All bargaining unit employees 24 provided either the 3% @ 50 or 3% @ 55 shall contribute 13.989% to 25 CalPERS representing 50% of the normal cost of benefits as determined 26 by CalPERS for the 2013-2014 fiscal year. Employees provided the 2.7% @ 57 retirement formula shall contribute 50% of the normal contributions 27 consistent with the provisions of the PEPRA. The provisions of Section 28 414(h)(2) of the Internal Revenue Code (IRC) as implemented by the I Common Council on September 22, 1999 by Resolution No. 1999-235, 2 are applicable to contributions designated above. 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: Lieutenants and 7 Captains who are required to work special events where the City has 8 contracts with third parties to provide public safety services and where the 9 third parties pay for the cost of such labor services, shall be entitled to be paid overtime, (either straight time or premium overtime) in accordance 10 with the contract between the City and the third party. The City and the 11 SBPMA acknowledge that this provision shall not result in any additional 12 cost to the City. 13 5. Post-Retirement Medical Benefits: Employees hired on or after 1/1/13 14 shall not be eligible to receive payments for retiree medical benefits. The 15 Mayor and Common Council on November 26, 2012 in its Pendency Plan, 16 established that the City's contribution to retiree medical benefits shall be 17 capped at $ 112/month. The SBPMA and its active members and retirees 18 neither agree nor waive their rights, whatever those rights might be, with 19 regard to the Mayor and Council's actions and reserve their rights to 20 challenge any future unilateral modification to the retiree medical benefits. 21 The City shall reserve all rights, whatever those rights might be, to modify 22 retiree medical plans and the amount of contributions that are paid by the City. 23 24 6. Education and Professional Development: Current reimbursement policy 25 shall be amended to include attendance at job related training, seminars, 26 conferences, classes, and membership in professional organizations determined to be appropriate by the Chief of Police. Any reimbursement 27 for these activities shall be limited to membership dues, fees for 28 attendance and/or materials only and classes must be taken on the employee's own time. Employees shall not be entitled to be reimbursed 1 for travel expenses. Eligibility for reimbursement shall be within the sole 2 discretion of the Chief of Police and shall be dependent on availability of 3 funding. 4 5 7. Deferral of Payments for Accrued Leaves: All payments for accrued vacation and holiday leaves to which employees might be entitled prior to 6 separation from employment (sell-backs) shall remain deferred until June 7 30, 2014. All payments for cash-outs upon separation for accrued vacation 8 and holiday leave shall remain deferred until June 30, 2014. 9 8. Vacation Leave Accrual Caps: Effective July 1, 2013, a bargaining unit 10 employee may only accrue maximum vacation leave hours as follows: 1 11 through 5 years of service: up to 160 hours; 6 through the completion of 12 15 years of service: up to 240 hours; 16 through the completion of 20 13 years of service: up to 320; and, 21 or more years of service: up to 400 14 hours. Any hours in excess of these caps shall be cashed out on July 1, 15 2013. Once the cap has been reached, an employee may not accrue any 16 additional hours until the employee's accrued leave is below the cap. 17 9. Sick Leave Accrual Caps: Effective February 1, 2013, all bargaining unit 18 employees may only accrue a maximum of 1040 hours of sick leave. All 19 bargaining unit employees with accrued sick leave hours in excess of 900 20 hours on February 1, 2013, will have those excess hours converted to a 21 separate excess sick leave bank (ESL). Effective July 1, 2013, 24 hours from the ESL shall be cashed out each quarter of the fiscal year. Fifty 22 percent (50%) of any remaining balances in the ESL at the time of 23 separation shall revert to a PEHP trust or a 401(a). Sick leave earned on 24 or after February 1, 2013, is subject to the 1040 cap. At the time of 25 separation, any employee having six (6) or more years of service, shall 26 convert unused sick leave to a PEHP or a 401(a) as follows: 288 hours or 27 less accrued = 0; 289-479 hours = 20% of accrued sick leave; 480-959 28 hours = 25%; 960 or more hours = 35%. The SBPMA may request an adjustment of the amounts converted to a 401(a) or PEHP by notifying the 1 City of their request no less than sixty (60) days prior to the expiration of 2 any Memorandum of Understanding (MOU). 3 4 10. Family Sick Leave: SBPMA 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, 7 brother-in-law, daughter-in-law, son-in-law, or domestic partner. 8 9 11. Optional Cell Phone Allowance: Employees who are required to have cell phones for conducting City and Department business may, in lieu of 10 receiving a City issued paid cell phone, elect to purchase and maintain a 11 personal cell phone for that purpose. Employees who select this option 12 are entitled to be reimbursed $ 65.00 per month. 13 12. Items to Remain: The City and the SBPMA agree that there are no 14 proposed changes to the following provisions: Administrative Leave; 15 Special Certification Pay; Charter Section 186 Adjustments; City's 16 contribution to medical/dental/vision/life insurance benefits; long term 17 disability; and, uniform allowance. Further, with respect to the City's 18 monthly contribution for medical, dental, vision and life insurance, the 19 parties agree that the SBPMA members currently are entitled to receive 20 ten percent (10%) higher contribution than the sum of Kaiser Health South 21 (2-party) + Delta Dental High Option Plan (2-party) + $ 100. The parties agree that this provision shall be suspended through June 30, 2014 and 22 the City's current contribution shall be $ 1091.81/month. 23 24 13. Term: These modifications to the current Memorandum of Understanding 25 (MOU) shall be in effect from February 1, 2013 through June 30, 2014. The parties agree to reopen negotiations in February 2014 for a successor 26 agreement. During this period, the parties agree to continue informal 27 discussions concerning the provisions of a comprehensive Memorandum 28 of Understanding (MOU) including both economic and non-economic 1 benefits. 2 3 14. Bankruptcy Reservation of Rights: The parties agree that all of the rights 4 of the parties are reserved with respect to the existing pre-petition 5 Memorandum of Understanding (MOU) and any amendment(s) thereto (collectively, the "Prepetition Agreement") between the parties for 6 bankruptcy p y purposes. 7 8 15. Favored Nations Clause: The SBPMA shall not be required to implement 9 the provisions specified herein until all bargaining units are making, at a minimum, those concessions specified in the City's pendency plan. 10 Moreover, the City appreciates SBPMA's good faith at the table and the 11 fact that it reached agreement in advance of other units. The intent of the 12 parties is that the Common Council should fairly implement the provisions 13 of the Pendency Plan among all bargaining units. Should any other 14 bargaining unit reach agreement or have imposed upon it any meaningful 15 offsetting benefits, the SBPMA shall have the option to accept such similar 16 offsetting benefits in toto, in lieu of those agreed to herein. 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 THE SAN BERNARDINO POLICE MANAGEMENT UNIT (SBPMA). 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 da of 21 2013. Y 22 23 Patrick J. Morris, Mayor 24 City of San Bernardino 25 Approved as to form: 26 JAMES F. PENMAN, City At) rney 27 Z By: 28