HomeMy WebLinkAbout2014-249 1 RESOLUTION NO. 2014-249
2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO APPROVING SIDE LETTER AGREEMENTS WITH THE
3 MANAGEMENT/CONFIDENTIAL (SBCMA), MIDDLE MANAGEMENT (SBPEA) AND
4 GENERAL (IUOE) BARGAINING UNITS.
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WHEREAS, on July 18, 2012, the Mayor and Common Council of the City of San
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7 Bernardino declared a fiscal emergency; and
8 WHEREAS, on August 1, 2012, the City filed an emergency voluntary petition for
9 Chapter 9 Bankruptcy with the United Stated Bankruptcy court for the Central District of
10 California, Riverside Division; and
11 WHEREAS, on November 26, 2012, the Mayor and Common Council adopted the
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Pendency Plan, Resolution 2012-278; and
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WHEREAS, on January 28, 2013, the City entered into agreements with the
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15 Management/Confidential Unit (SBCMA), Middle Management Unit (SBPEA) and
16 General Unit (IUOE), and the Mayor and Common Council adopted Resolutions 2013-18
17 (SBPEA), 2013-22 (SBCMA) and 2013-24 (IUOE); and
18 WHEREAS, such agreements were ratified by the membership of SBCMA,
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SBPEA and IUOE; and
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WHEREAS, since April 2014, the City's negotiating team has been meeting with
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22 the SBCMA, SBPEA and IUOE and provided bargaining proposals, financial and other
23 information responsive to the bargaining units' numerous requests in an attempt to meet
24 and negotiate in good faith concerning modifications to the terms and conditions of
25 employment consistent with the budget; and
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2014-249
1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO APPROVING SIDE LETTER AGREEMENTS WITH THE
2 MANAGEMENT/CONFIDENTIAL (SBCMA), MIDDLE MANAGEMENT (SBPEA) AND
3 GENERAL (IUOE) BARGAINING UNITS.
4
WHEREAS, the City and SBCMA, SBPEA and IUOE representatives have met
5
and have reached agreement on certain terms and conditions set forth in attached side
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letters, Exhibit "A", Exhibit "B" and Exhibit "C"; and
8 WHEREAS, such agreements have been ratified by the members of SBCMA,
9 SBPEA and IUOE bargaining units.
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11 NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON
12 COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS:
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SECTION 1: The Side Letters executed by the SBCMA, SBPEA and IUOE
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attached hereto and incorporated herein, marked as Exhibits "A", "B", and "C",
16 respectively, are hereby approved.
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2014-249
1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO APPROVING SIDE LETTER AGREEMENTS WITH THE
2 MANAGEMENT/CONFIDENTIAL (SBCMA), MIDDLE MANAGEMENT (SBPEA) AND
3 GENERAL (IUOE) BARGAINING UNITS.
4
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and
5
Common Council of the City of San Bernardino at a joint regular meeting
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thereof, held on the 7th day of July , 2014, by the following vote, to wit:
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9 Council Members: AYES NAYS ABSTAIN ABSENT
10 MARQUEZ x
11 BARRIOS x
12 VALDIVIA x
13 SHORETT x
14
NICKEL x
15
16 JOHNSON
17 MULVIHILL x
18
19 George., n Hanna, i Clerk
20 The foregoing resolution is hereby approved this day of July , 2014.
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22 • �__I�� /
23 Virginia Mjrquez, ,.yo*Pro Tem
Approved as to form: City of San Bernardino
24 GARY D. SAENZ,
25 City Attorney
26 By= _
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2014-249
EXHIBIT "A"
Side Letter Agreement between the City of San Bernardino ("City") and the San
Bernardino Confidential/Management Association (SBCMA) extending the terms
and conditions of employment.
SECTION 1. The following terms and conditions of employment for SBCMA
members, which had been adopted by the Mayor and Common Council (Resolution
2013-22) and ratified by the SBCMA for implementation effective February 1, 2013,
shall continue for the duration of this Agreement:
1. CaIPERS Retirement Formulas: For all employees employed on or before
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.
2. Cost Sharing of CaIPERS Benefits: All employees hired on or before
December 31, 2012 shall contribute 9.304% to the CaIPERS benefit
representing 50% of the normal cost of benefits as determined by CaIPERS
for the 2013-2014 fiscal year. Employees hired on or after January 1, 2013,
shall contribute 50% of the normal contributions consistent with the
provisions of the Public Employees' Pension Reform Act of 2013 (PEPRA).
The provisions of Section 414(h)(2) of the Internal Revenue Code (IRC) are
applicable to contributions designated as employee contributions made by
the City of San Bernardino to the CaIPERS and are hereby incorporated
herein.
3. Salary Concessions: All salary concessions previously agreed to by the City
and the SBCMA shall be restored to their prior level and all bargaining unit
employees will resume working a forty (40) hour week. Education Tuition
Assistance will no longer be suspended. Bargaining unit members who are
so entitled shall continue to receive eighty (80) hours per fiscal year of
administrative leave.
4. Post-Retirement Medical Benefits: Employees hired on or after January 1,
2013, shall not be eligible to receive payments for retiree medical benefits.
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2014-249
EXHIBIT "A"
The City shall reserve all rights to modify retiree medical plans and the
amount of contributions paid by the City.
5. Suspension of Payments for Accrued Leaves: All payments for accrued sick
leave, vacation, and holiday leave time to which employees may be entitled
prior to separation from employment (sell-backs) shall remain suspended in
accordance with the action of the Mayor and Common Council on June 16,
2014. All payments for cash-outs upon separation for all accrued sick,
vacation and holiday leave shall remain suspended in accordance with the
action of the Mayor and Common Council on June 16, 2014.
6. Vacation Leave Accrual Caps: Effective July 1, 2013, a bargaining unit
employee may only accrue vacation leave hours as follows: 1 through 5
years of service: up to 160 hours; 6 through the completion of 15 years of
service: up to 240 hours; 16 through the completion of 20 years of service:
up to 320; and, 21 or more years of service: up to 400 hours. Any hours in
excess of these caps shall be cashed out on July 1, 2013. Once the cap has
been reached, a bargaining unit member may not accrue any additional
hours until the employee's accrued leave is below the cap.
7. Sick Leave Accrual Caps: Effective February 1, 2013, all bargaining unit
employees may only accrue a maximum of 1040 hours of sick leave. All
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
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
percent (50%) of any remaining balances in the ESL at the time of separation
shall revert to a PEHP trust or a 401(a). Sick leave earned on 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 convert unused sick
leave earned after February 1, 2013 to a PEHP or a 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 hours = 35%.
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2014-249
EXHIBIT "A"
8. Family Sick Leave: SBCMA bargaining unit members may use unlimited
accrued sick leave for the care of an immediate family member. Immediate
family member means husband, wife, grandmother, grandfather, mother,
father, sister, brother, son, daughter, mother-in-law, father-in-law, sister-in-
law, brother-in-law, daughter-in-law, son-in-law, or domestic partner.
9. Standard Tour of Duty: The standard tour of duty for SBCMA employees
assigned to City Hall (exclusive of the City Attorney's Office) shall be a 4/10
work schedule, (40-hour workweek consisting of four ten (10) hour days,
with Fridays off). The City may change the standard tour of duty as required.
The City shall generally give employees two (2) weeks' notice of any
proposed changes to the standard tour of duty. Emergency situations are
exempted from the two (2) weeks' notice provision.
SECTION 2. Tuition Reimbursement. For fiscal year 2014-2015, the City shall
make available to all eligible City employees, a $20,000 fund to be used for tuition costs
and textbooks. The fund shall be distributed on a first come basis as determined by the
filing date of the appropriate documentation with the Human Resources Department
[Refer to Department Director Letter#48 (April 12, 2004)].
SECTION 3. Health Benefits. The City and the SBCMA agree to continue
negotiations with respect to contributions toward health, dental, vision, and other
medical benefits. SBCMA agrees to continue to participate in the City's Joint Labor
Management Health Benefits Committee to review possible options for modifying health
benefit plan designs. The City and SBCMA agree to negotiate health benefit
contributions based upon plan designs once the renewal rates are available. Plan
designs and contributions shall be effective January 1, 2015.
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2014-249
EXHIBIT "A"
SECTION 4. Bonus Pay. Each member of the Management/Confidential Unit
shall be entitled to a one-time, off-schedule, lump sum bonus equal to 2% of the
employee's annual base pay. Such payment is not considered compensation for
purposes of CaIPERS. Bonus is subject to state and federal taxes. Payment will be paid
on the first paycheck in November 2014.
SECTION 5. Term. The terms and conditions set forth herein shall be in effect
from July 1, 2014, through June 30, 2015, and any Prepetition Agreements, and any
amendments thereto, shall continue to apply except as expressly set forth herein.
Nothing in this Agreement is intended to or constitutes an assumption or rejection (as
those terms are used in the Bankruptcy Code) of the MOU or any other agreement
between the SBCMA and the City. The City reserves the right to take any such action
at any time in the future. The Parties hereto reserve all other rights for bankruptcy
purposes or otherwise. During the duration of this Agreement, the City and the SBCMA
agreed to continue negotiating with the intent of reaching a comprehensive
Memorandum of Understanding (MOU) including, without limitation, health benefits
contributions, and other economic and non-economic benefits and to discuss relative
Chapter 9 Plan of Adjustment issues.
DATE: 6—A
FOR THE CITY: REPRESENTATIVES OF:
SAN BERNARDINO
CONFIDENTIAL/MANAGEMENT
(SBCMA) UNI MPLOYEES
.
a /.
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2014-249
EXHIBIT "C"
Side Letter Agreement between the City of San Bernardino ("City") and the
General Unit Employees represented by the International Union of Operating
Engineers (IUOE) extending the terms and conditions of employment.
SECTION 1. The following terms and conditions of employment for General Unit
members represented by the International Union of Operating Engineers ("IUOE"),
which had been adopted by the Mayor and Common Council (Resolution No. 2013-24)
and ratified by the IUOE for implementation effective February 1, 2013, shall continue
for the duration of this Agreement:
1. CaIPERS Retirement Formulas: For all employees employed on or before
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.
2. Cost Sharing of CaIPERS Benefits: All employees hired on or before
December 31, 2012 shall contribute 9.304% to the CaIPERS benefit
representing 50% of the normal cost of benefits as determined by CaIPERS
for the 2013-2014 fiscal year. Employees hired on or after January 1, 2013,
shall contribute 50% of the normal contributions consistent with the
provisions of the Public Employees' Pension Reform Act of 2013 (PEPRA).
The provisions of Section 414(h)(2) of the Internal Revenue Code (IRC) are
applicable to contributions designated as employee contributions made by
the City of San Bernardino to the CaIPERS and are hereby incorporated
herein.
3. Salary Concessions: All salary concessions previously agreed to by the City
and the IUOE shall be restored to their prior level and all bargaining unit
employees will resume working a forty (40) hour week.
4. Post-Retirement Medical Benefits: Employees hired on or after 1/1/13 shall
not be eligible to receive payments for retiree medical benefits. The City shall
reserve all rights to modify retiree medical plans and the amount of
contributions paid by the City.
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2014-249
EXHIBIT "C"
5. Suspension of Payments for Accrued Leaves: All payments for accrued sick
leave, vacation, and holiday leave time to which employees may be entitled
prior to separation from employment (sell-backs) shall remain suspended in
accordance with the action of the Common Council on June 16, 2014. All
payments for cash-outs upon separation for accrued sick, vacation and
holiday leave shall remain suspended in accordance with the action of the
Common Council on June 16, 2014.
In addition to the above, the following terms and conditions shall be in effect
during the term of this Agreement:
SECTION 2. Holiday. The terms and conditions regarding accrued holiday
leave as adopted by the Mayor and Common Council by Resolution No. 2013-108 are
incorporated herein for the duration of the Agreement.
SECTION 3. Bonus Pay. Each member of the General Unit shall be entitled to
a one-time, off-schedule, lump sum bonus equal to 3% of the employee's annual base
pay. Such payment is not considered compensation for purposes of CaIPERS. Bonus is
subject to state and federal taxes. Payment will be paid on the first paycheck in
November 2014.
SECTION 4. Health Benefits. The City and the IUOE agree to continue
negotiations with respect to contributions toward health, dental, vision, and other
medical benefits. IUOE agrees to continue to participate in the City's Joint Labor
Management Health Benefits Committee to review possible options for modifying health
benefit plan designs. The City and IUOE agree to negotiate health benefit contributions
based upon plan designs once renewal rates are available. Plan designs and
contributions shall be effective January 1, 2015.
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2014-249
EXHIBIT "C"
SECTION 5. Higher Acting Classification Pay. The following language shall
be added to Article Ill, Section 4, Higher Acting Classification Pay, of the current
Memorandum of Understanding: "No General Unit Employee that is on probation shall
be placed in a higher acting classification. Further, no General Unit employee shall be
in a higher acting classification for more than one (1) year."
SECTION 6. Term. The terms and conditions set forth herein shall be in effect
from July 1, 2014 through June 30, 2015, and any pre-petition Memorandum of
Understanding (MOU) and any amendments thereto, shall continue to apply except as
expressly set forth herein. Nothing in this Agreement is intended to or constitutes an
assumption or rejection (as those terms are used in the Bankruptcy Code) of any MOU
or any other agreements between the IUOE and the City. The City and the IUOE agree
to continue negotiating with the intent of reaching a comprehensive agreement
including, without limitation, health benefit contributions, and other economic and non-
economic benefits and to discuss relative Chapter 9 Plan of Adjustment issues.
Date: ',/,6./y
For the City: For the IUOE:
/ 7
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2014-249
EXHIBIT "B"
Side Letter Agreement between the City of San Bernardino ("City") and the
Middle-Management Unit Employees represented by the San Bernardino Public
Employees Association (SBPEA) extending the terms and conditions of
employment.
SECTION 1. The following terms and conditions of employment for the middle-
management bargaining unit members represented by the SBPEA, which had been
adopted by the Mayor and Common Council (Resolution No. 2013-239) and ratified by
SBPEA for implementation effective February 1, 2013, shall continue for the duration of
this agreement:
1. CaIPERS Retirement Formulas: For all employees employed on or before
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.
2. Cost Sharing of CaIPERS Benefits: All bargaining unit employees
represented by the SBPEA, hired on or before 12/31/12, shall contribute
9.304% of reportable income [8% Employee Contribution plus 1.304% of
the Employer Contribution] to the California Public Employee Retirement
System (CaIPERS) retirement benefit which represents fifty-percent (50%)
of the normal costs of benefits as determined by CaIPERS for the 2013-
2014 fiscal year. Employees hired on or after January 1, 2013, shall
contribute 50% of the normal contribution consistent with the provisions of
the Public Employees' Pension Reform Act of 2013 (PEPRA). The
provisions of Section 414(h)(2) of the Internal Revenue Code (IRC) as
implemented by the Mayor and Common Council on September 22, 1999
by Resolution No. 1999-235, are applicable to contributions designated as
employee contributions made by the City of San Bernardino to the
CaIPERS and are hereby incorporated herein. [Pendency Plan # 5].
3. Salary Concessions: All salary concessions previously agreed to by the City
and the SBPEA shall be reversed and all bargaining unit employees will
resume working a forty (40) hour week. Bargaining unit members who are so
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2014-249
EXHIBIT "B"
entitled shall continue to receive forty (40) hours per fiscal year of
administrative leave.
5. Post-Retirement Medical Benefits: Employees hired on or after 1/1/13 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 medical
plans and the amount of contributions paid by the City.
6. Deferral of Payments for Accrued Leaves: All payments for accrued sick
leave, holiday, and vacation leave to which employees may be entitled prior
to separation from employment (sell-backs) shall remain suspended in
accordance with the action of the Mayor and the Common Council on June
16, 2014. All payments for cash-outs upon separation for accrued sick,
holiday, and vacation leave shall remain suspended in accordance with the
action of the Common Council on June 16, 2014.
7. Sick Leave Accrual Caps: Effective February 1, 2013, all bargaining unit
employees may only accrue a maximum of 1040 hours of sick leave. All
bargaining unit employees with accrued sick leave hours in excess of 900
hours on August 1, 2013, will have those excess hours converted to a
separate excess sick leave bank (ESL). In addition, any net accruals beyond
1040 hours occurring from February 1 to July 31, 2013 will be allocated to the
accrued sick leave bank. Effective October 1, 2013, 24 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 percent (50%) of any
remaining balances in the ESL at the time of separation shall revert to a
PEHP trust. Sick leave earned on or after February 1, 2013, is subject to the
1040 hour cap. At the time of separation, any employee having six (6) or
more years of service, shall convert unused sick leave earned after February
1, 2013 to a PEHP trust as follows: 288 hours or less accrued = no
conversion; 289-479 hours = 20% of accrued sick leave; 480-959 hours =
25%; 960 or more hours = 35%.
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2014-249
EXHIBIT "B"
8. Family Sick Leave: SBPEA bargaining unit members may use unlimited
accrued sick leave for the care of an immediate family member. Immediate
family member means husband, wife, grandmother, grandfather, mother,
father, sister, brother, son, daughter, mother-in-law, father-in-law, sister-in-
law, brother-in-law, daughter-in-law, son-in-law, or domestic partner.
SECTION 2. Health Benefits. The City and the SBPEA agree to continue
negotiations with respect to contributions toward health, dental, vision, and other
medical benefits. SBPEA agrees to continue to participate in the City's Joint Labor
Management Health Benefits Committee to review possible options for modifying health
benefit plan designs. The City and SBPEA agree to negotiate health benefit
contributions based upon plan designs once renewal rates are available. Plan designs
and contributions shall be effective January 1, 2015.
SECTION 3. Tuition Reimbursement. For fiscal year 2014-2015, the City
shall make available to all eligible City employees, a $20,000 fund to be used for tuition
costs and textbooks. The fund shall be distributed on a first come basis as determined
by the filing date of the appropriate documentation with the Human Resources
Department [Refer to Department Director Letter#48 (April 12, 2004)].
SECTION 4. Vacation Leave. The following language shall be added to Article
V, Section 1, Vacation, of the current Memorandum of Understanding: "Requests to
utilize accrued vacation shall be submitted in writing on City approved forms to the
Department Head. Department Heads shall respond to vacation requests submitted on
City approved forms within ten (10) work days. Department Heads shall not
unreasonably delay responses to employee vacation requests. Nothing in this article
shall be construed to prevent a response to the employee's request before the
expiration of ten (10) work days."
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2014-249
EXHIBIT "B"
SECTION 5. Bonus Pay. Each member of the Middle Management Unit shall
be entitled to a one-time, off-schedule, lump sum bonus equal to 2.1% of the
employee's annual base pay. Such payment is not considered compensation for
purposes of CaIPERS. Bonus is subject to state and federal taxes. Payment will be paid
on the first paycheck in November 2014.
SECTION 6. Term. The terms and conditions set forth herein shall be in effect
from July 1, 2014 through June 30, 2015, and the Pre-petition Memorandum of
Understanding (MOU) between the City and the SBPEA, and any amendments thereto,
shall continue to apply except as expressly set forth herein. Nothing in this Agreement
is intended to or constitutes an assumption or rejection (as those terms are used in the
Bankruptcy Code) of any MOU or any other agreements between the City and the
SBPEA. The City and the SBPEA agree to continue to negotiate further terms and
conditions of employment during the term of this Agreement including without limitation,
health benefit contributions, with the intent of concluding a comprehensive agreement
on both economic and non-economic issues and to discuss relative Chapter 9 Plan of
Adjustment issues.
DATE:c/.2 //' ? I2 IPA
FOR THE CITY: REPRESENTATIVES OF:
MIDDLE MANAGEMENT UNIT
EMPLOYEES (SBPEA)
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