HomeMy WebLinkAbout06.E- Human Resources RESOLUTION(ID#2625) DOC ID:2625
CITY OF SAN BERNARDINO—REQUEST FOR COUNCIL ACTION
Personnel
From: Allen Parker fV/CC Meeting Date: 08/05/2013
Prepared by: Linda Wynn, (909) 384-5161
Dept: Human Resources Ward(s): All
Subject:
Resolution of the Mayor and Common Council of the City of San Bernardino Approving Terms
and Conditions of Employment for the Middle Management Unit 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. 2012-278. (#2625)
Current Business Registration Certificate: Not Applicable
Financial Imnact:
These actions are necessary to implement the provisions of the Pendency Plan.
Motion: Adopt the Resolution.
Synonsis of Previous Council Action:
On January 28,2013,the Mayor and Common Council adopted Resolution No. 2013-18
adopting terms and conditions of employment for the Middle Management Unit 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.
Baclwround
As a result of the City's dire financial condition,the City filed for Chapter 9 Bankruptcy
following the declaration of a fiscal emergency I 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 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 now implement 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 representative from the Middle Management
Unit regarding the terms and conditions of employment for the period commencing February 1,
Updated:7/31/2013 by Linda Sutherland
2625
2013 through June 30, 2014. The terms and conditions reached 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.
On August 1, 2013,the SBPEA membership ratified the tentative agreement reached by the
City's and the SBPEA's negotiating teams. Upon approval by the Mayor and Common Council
of the tentative agreement,the City will withdraw its Contract Rejection Motion with respect to
the SBPEA; the SBPEA will withdraw its Stay Relief Motion; and the SBPEA will withdraw all
objections to the eligibility of the City to be a Chapter 9 debtor.
The City and San Bernardino Public Employees Association have agreed on terms and
conditions which include all economic concessions set forth in the Pendency Plan. It is
recommended that attached Resolution be adopted.
City Attorney Review:
Supporting Documents:
MIDDLE MANAGEMENT RESOLUTION FINAL (DOC)
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Updated:7/31/2013 by Linda Sutherland
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RESOLUTION NO. S r^4c�/��.
1 4,t 4%
2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY SAN
BERNARDINO APPROVING TERMS AND CONDITIONS OF EMPLOYMENT FOR
3 THE MIDDLE 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
5 THE MAYOR AND COMMON COUNCIL ON NOVEMBER 26, 2012 BY
RESOLUTION NO. 2012-278.
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) exceeded 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 2012-278, which included the Fiscal Year 2012/13
25 and Fiscal Year 2013/14 General Fund Budgets which incorporated by reference the
26 Pre-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
4 YY):# U t
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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 met with the SBPEA and provided bargaining
3 proposals, financial and other information responsive to the SBPEA's numerous
4 requests in an attempt to meet and negotiate in good faith concerning modifications
5 to the terms and conditions of employment consistent with the provisions in the
6 Pendency Plan; and,
7 WHEREAS, 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
9 January 1, 2013, the City's negotiating team would be recommending to the Common
10 Council that the following provisions of the City's Pendency Plan be timely
11 implemented: 1) 9.304% employee pick-up of the CalPERS normal benefit costs
12 [Pendency Plan #5]; 2) All vacation, sick leave, holiday paid time off payments (cash-
13 out and sell-back) be suspended through June 30, 2014 [Pendency Plan # 13]; 3)
14 limit accrued sick leave to 1040 hours; and, 4) Elimination of retiree medical benefits
15 for all employees hired on or after January 1, 2013 [Pendency Plan #8]; and,
16 WHEREAS, based upon the SBPEA's failure to respond to the City's January
17 15, 2013, letter, and the failure of the City and the SBPEA to reach agreement
regarding the implementation of certain Pendency Plan provisions necessary for the
18 City to continue to provide services, on January 28, 2013, the Common Council
19 adopted Resolution No. 2013-18 declaring fiscal emergency within the meaning of
20 the Meyers-Milias-Brown Act, Government Code § 3504.5, and, implementing certain
21 provisions of its Pendency Plan; and,
22 WHEREAS, in accordance with Government Code § 3504.5, the City and the
23 SBPEA have an obligation to continue to negotiate following the adoption of
24 Resolution No. 2013-18; and,
25 WHEREAS, the City and the SBPEA representatives have met and have
26 reached agreement on certain terms and conditions set forth below.
27
28
NOW THEREFORE, be it resolved by the Mayor and Common Council of
1 the City of San Bernardino as follows:
2
3 SECTION 1. The following terms and conditions of employment for bargaining
unit members represented by the SBPEA are adopted for implementation effective
4 February 1, 2013:
5 1. CaIPERS Retirement Formulas: For all employees employed on or
6 before 10/3/11, 2.7% @ 55; employees hired on or after 10/4/11 to
7 12/31/12, 2% @ 55; employees hired on or after 1/1/13, 2% @ 62.
8 2. Cost Sharing of CaIPERS Benefits: All bargaining unit employees
9 represented by the SBPEA hired on or before 12/31/12 shall contribute
10 9.304% of reportable income [8% Employee Contribution plus 1.304%
11 of the Employer Contribution] to the California Public Employee
Retirement System (CaIPERS) retirement benefit which represents fifty-
12 percent (50%) of the normal costs of benefits as determined by
13 CaIPERS for the 2013-2014 fiscal year. Employees hired on or after
14 January 1, 2013, shall contribute 50% of the normal contribution
15 consistent with the provisions of the Public Employees Pension Reform
16 Act of 2013 (PEPRA). The provisions of Section 414(h)(2) of the
17 Internal Revenue Code (IRC) as implemented by the Mayor and
18 Common Council on September 22, 1999 by Resolution No. 1999-235,
19 are applicable to contributions designated as employee contributions
made by the City of San Bernardino to the CaIPERS and are hereby
20 incorporated herein. [Pendency Plan # 5].
21
22 3. Salary Concessions: All salary concessions previously agreed to by the
23 City and the SBPEA shall be reversed and all bargaining unit
employees will resume working a forty (40) hour week. Bargaining unit
24 members who are so entitled shall continue to receive forty (40) hours
25 per fiscal year of administrative leave.
26
27 4. Education Tuition Assistance: Educational reimbursement shall
28 continue in accordance with Article IV, Section 3 — Tuition
Reimbursement, of the Memorandum of Understanding (MOU) Middle
1 Management Employees, July 1, 2006 to June 30, 2009, as amended.
2
3 In addition, during the term of this interim agreement, the City must
4 reimburse bargaining unit members for job-related courses, programs,
training, conferences, classes, and memberships in professional
5 organizations as follows: Employees with 5-10 years of service = up to
6 $500; employees with 11-15 years of service = up to $1,000;
7 employees with 16 or more years of service = up to $1,500.
8
Article IV, Section 3 — Tuition Reimbursement, of the Memorandum of
9 Understanding (MOU) Middle Management Employees, July 1, 2006 to
10 June 30, 2009, is being amended herein to add Subsection (E),
11 Reimbursement for Job-Related Professional Activities, as follows:
12
E. Reimbursements for Job-Related Professional Activities
13
14 Purpose
15 1. To encourage the employees of the City of San Bernardino to
16 attend job-related courses, programs, training, conferences,
17 classes, and memberships in professional organizations that will
better enable them to perform their present duties and prepare
18 them for increased responsibilities.
19 2. To provide financial assistance to eligible employees for job
20 related training and professional development.
21 3. To establish eligibility requirements, conditions and procedures
22 whereby such assistance may be provided.
23 Eligibility
24 1. Applications for reimbursement will be considered only from unit
I
25 members/employees who have completed at least 5 years of
26 service with the City.
27 2. Applications will be approved only for courses, conferences, and
28 memberships directly related to the employee's job or directly
related to a promotional position in the employee's occupational
1
specialty.
2 3. Any reimbursement under this section must be preapproved in
3 accordance with the procedures set forth below. In order to be
4 eligible for reimbursement under this section, employees must
5 complete appropriate documentation on forms provided by
6 Human Resources.
7 Reimbursement
8 The City shall reimburse bargaining unit members for job-related
9 courses, programs, training, conferences, classes, and
10 memberships in professional organizations as follows:
11 Employees with 5-10 years of service = Up to $ 500;
12 Employees with 11-15 years of service = Up to $ 1,000;
13 Employees with 16 or more years of service = Up to $ 1,500.
14 Procedures
15 To qualify for reimbursement, employees shall comply with the
16 procedures set forth below:
17 1. An employee who desires to seek reimbursement under the
18 provisions of this Article must complete a Request for
19 Reimbursement form generated and approved by the Human
20 Resources Department and submit it to his/her Department Head
21 for advance approval.
22 2. The Department Head will recommend approval or disapproval
23 based on job relatedness and will forward the Request form to
24 the Human Resources Division Manager or designee. The
Human Resources Division Manager shall review the form and
25 forward to the City Manager a recommendation for approval or
` 26 disapproval for final action. If the request is approved, it shall be
{ 27 sent to the Finance Department with authorization for
i
28
reimbursement. The decision of the City Manager as to the
1 employee's eligibility shall be final and binding.
2
3 5. Post-Retirement Medical Benefits: Employees hired on or after 1/1/13
4 shall not be eligible to receive payments for retiree medical benefits. With
respect to all employees, the City shall reserve all rights to modify retiree
5
6 medical plans and the amount of contributions paid by the City.
7 6. Deferral of Payments for Accrued Leaves: All payments for accrued sick
8 leave, holiday, and vacation leave to which employees may be entitled
9 prior to separation from employment (sell-backs) shall remain suspended in
accordance with the action of the Mayor and the Common Council on
10 August 6, 2012. All payments for cash-outs upon separation for accrued
11 sick, holiday, and vacation leave shall remain suspended in accordance
12 with the action of the Common Council on August 6, 2012. [Pendency Plan
13 # 13]
14 7. Sick Leave Accrual Caps: Effective February 1, 2013, all bargaining unit
15 employees may only accrue a maximum of 1040 hours of sick leave. All
16 bargaining unit employees with accrued sick leave hours in excess of 900
17 hours on August 1, 2013, will have those excess hours converted to a
18 separate excess sick leave bank (ESL). In addition, any net accruals
19 beyond 1040 hours occurring from February 1 to July 31, 2013 will be
20 allocated to the accrued sick leave bank. Effective October 1, 2013, 24
21 hours from the ESL shall be cashed out each quarter of a fiscal year until
the ESL is extinguished or until the employee separates from service. Fifty
22 percent (50%) of any remaining balances in the ESL at the time of
23 separation shall revert to a PEHP trust. Sick leave earned on or after
24 February 1, 2013, is subject to the 1040 hour cap. At the time of
25 separation, any employee having six (6) or more years of service, shall
26 convert unused sick leave earned after February 1, 2013 to a PEHP trust
27 as follows: 288 hours or less accrued = no conversion; 289-479 hours =
28
20% of accrued sick leave; 480-959 hours = 25%; 960 or more hours =
1 35%.
2
3 8. Term: The terms and conditions set forth herein shall be in effect from
4 February 1, 2013 through June 30, 2014. The City and the SBPEA agree
to reopen negotiations in January 2014 with the intent of concluding a
5 comprehensive agreement on both economic and non-economic issues.
6
7 9. Family Sick Leave: SBPEA bargaining unit members may use unlimited
8 accrued sick leave for the care of an immediate family member. Immediate
9 family member means husband, wife, grandmother, grandfather, mother,
father, sister, brother, son, daughter, mother-in-law, father-in-law, sister-in-
10 law, brother-in-law, daughter-in-law, son-in-law, or domestic partner.
11
12 10.Favored Nations Clause: If any miscellaneous unit does not agree to the
13 implementation of the retirement pick-up, or if any safety group does not
agree to, or the Common Council does not implement Items #3, #4, or #9
14 of the Pendency Plan, the SBPEA will not be required to implement the
15 pick-up concession and the parties agree to reopen negotiations solely on
16 this item.
17
11.Bankruptcy Reservation of Rights: The Memorandum of Understanding
18 and any amendment(s) thereof (collectively, the "MOU") shall continue to
19 apply except as expressly set forth herein. Nothing in this Resolution is
20 intended to or constitutes an assumption or rejection (as those terms are
21 used in the Bankruptcy Code) of the MOU or any other agreement between
22 the SBPEA and the City. The City reserves the right to take any such
23 action at any time in the future. The parties hereto reserve all other rights
24 for bankruptcy purposes or otherwise.
25 SECTION 2. On August 1, 2013, the SBPEA membership ratified the
26 terms and conditions of the interim agreement as set forth herein.
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27
28
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RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
1 BERNARDINO APPROVING TERMS AND CONDITIONS OF EMPLOYMENT FOR
2 THE MID-MANAGEMENT UNIT EMPLOYEES REPRESENTED BY THE SAN
BERNARDINO PUBLIC EMPLOYEES ASSOCIATION (SBPEA), CONSISTENT
3 WITH CERTAIN PROVISIONS OF THE CITY'S PENDENCY PLAN, ADOPTED BY
THE MAYOR AND COMMON COUNCIL ON NOVEMBER 26, 2012 BY
4 RESOLUTION NO. 2012-278.
5 1 HEREBY CERTIFY that the foregoing Resolution was duly adopted by the
6
Mayor and Common Council of the City of San Bernardino at a
7
8 meeting thereof, held on the day of ,
9 2013, by the following vote, to wit:
10 Council Members: AYES NAYS ABSTAIN ABSENT
11 MARQUEZ
12
JENKINS
13
14 VALDIVIA
15 SHORETT
16 KELLEY
17 JOHNSON
18
MCCAMMACK
19
20
21 Georgeann Hanna, City Clerk
22 The foregoing Resolution is hereby approved this day of
23 2013.
24
Patrick J. Morris, Mayor
25 City of San Bernardino
26 Approved as to form:
27 JAMES F. PENMAN,
City Attorney
28 By: :2. �C>Y�-,4�