HomeMy WebLinkAbout2015-173 I RESOLUTION NO. 2015-173
2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
3 BERNARDINO APPROVING A SETTLEMENT AGREEMENT WITH THE SAN
BERNARDINO POLICE OFFICERS' ASSOCIATION (SBPOA).
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5 WHEREAS, on July 18, 2012, the Mayor and Common Council of the City of San
6 Bernardino declared a fiscal emergency; and
7 WHEREAS, on August 1, 2012, the City filed an emergency voluntary petition for
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Chapter 9 Bankruptcy with the United Stated Bankruptcy court for the Central District of
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California, Riverside Division; and
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11 WHEREAS, on November 26, 2012, the Mayor and Common Council adopted the
12 Pendency Plan, Resolution 2012-27; and
13 WHEREAS, on January 28, 2013, the Mayor and Common Council adopted
14 Resolution No. 2013-19, imposing terms and conditions of employment for the SBPOA;
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WHEREAS, since the adoption of the Pendency Plan in November 2012, the
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18 City's negotiating team has been meeting with the SBPOA and in November 2013, the
19 City and the SBPOA agreed to confidential mediation proceedings with the Honorable
20 Judge Gregg Zive; and
21 WHEREAS, the City and the SBPOA have met on numerous occasions through
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the confidential mediation process and have exchanged bargaining proposals, financial
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24 and other information responsive to requests in an attempt to resolve all outstanding
25 issues; and
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I WHEREAS, the City and the SBPOA representatives have reached agreement on
2 terms and conditions set forth in attached Settlement Agreement, Exhibit "A"; and
3 WHEREAS, the Settlement Agreement has been ratified by the members of
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SBPOA on July 29, 2015.
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NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON
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7 COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS:
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SECTION 1: The Settlement Agreement attached hereto and incorporated herein,
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10 marked as Exhibit "A" is hereby approved.
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1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO APPROVING A SETTLEMENT AGREEMENT WITH THE SAN
2 BERNARDINO POLICE OFFICERS' ASSOCIATION (SBPOA).
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4 1 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 thereof, held on
6 the 3rd day of August, 2015, by the following vote, to wit:
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8 Council Members: AYES NAYS ABSTAIN ABSENT
9 MARQUEZ X
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BARRIOS X
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12 VALDIVIA X
13 SHORETT X
14 NICKEL X
15 JOHNSON X
16 MULVIHILL X
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19 Georg nn Hann `CMC, City Clerk
20 The foregoing resolution is hereby approved this day of ugust, 2015.
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R. Carey Djkis, Mayor
23 City of San'Bernardino
24 Approved as to form:
Gary D. Saenz, City Attorney
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26 By: O
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2015-173
Exhibit "A"
Terms of Settlement between the
City of San Bernardino (City) and the
San Bernardino Police Officers Association (SBPOA)
July 2015 Final Settlement Terms
1. Provisions in the Successor Agreement:
Unless otherwise modified or eliminated as per agreement by the City and the
SBPOA, the language in the prior (and rejected) Memorandum of Understanding
(MOU) will be incorporated into the new Agreement including the following
provisions:
a) Article I, Administration: Section 1 - Definition of Terms;
Section 2— Management Rights; Section 3— Mutual Aid;
Section 4—Agency Personnel Rights; Section 5 — Employees'
Rights
b) Article II, Employer-Employee Relations: Section 1 -
Recognition; Section 2 — No Strike; Section 3 — Payroll
Deductions; Section 4— Grievance Procedure; Section 5 —
Emp/oyee Representative; Section 7— No Discrimination;
Section 8 — Personnel Files; Section 9 — Political Activity;
Section 10 — Use of City Resources; Section 11 — Employer-
Employee Relations Committee
2. Article II, Employer-Employee Relations, Section 6 —Investigative Rights
For disciplinary appeals, the member may request that a neutral hearing
officer hear the matter and submit a proposed decision to the City's Civil
Service Board. The Board shall review the decision and recommended
discipline and either adopt the findings and the disciplinary action in its
entirety, modify the recommended disciplinary action, and/or request
additional findings from the hearing officer. The Board shall retain
jurisdiction over final disposition of the disciplinary action.
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2015-173
Exhibit "A"
3. Article III, Compensation, Section 1 — Salaries.
For each year that this Agreement is in effect, the monthly salaries of local
safety members of the San Bernardino Police Department shall be
increased by 3.5%. In addition, salary surveys shall be conducted
annually, in accordance with the City Charter, Article X, Section 186 and
consistent with the interpretation and methodology currently utilized by the
City. In the event that the annual salary adjustment for each classification
surveyed exceeds 3.5%, the higher amount shall determine the salary for
that classification. Salary increases shall be effective August 1 in
accordance with the City Charter. The provisions of this section shall
continue during the term of this Agreement regardless of whether City
Charter Section 186 is repealed or otherwise modified.
4. Article III, Compensation, Section 2 — PERS/Retirement Plan.
a) Retirement formulas: 1) Employees hired prior to September 1,
2011 shall receive a 3%@ 50 retirement benefit; 2) Employees
hired between September 1, 2011 and December 31, 2012 shall
receive a 3% @ 55 retirement benefit; 3) Employees hired between
January 1, 2013 and December 31, 2015 shall receive a 2.7% @
57 retirement benefit in accordance with the Public Employees'
Pension Reform Act (PEPRA); 4) Employees hired on or after
January 1, 2016 shall receive a 2.5% @ 57 retirement benefit in
accordance with PEPRA.
b) Contributions/Cost Sharing: As of the effective date of this
Agreement, legacy or classic employees as defined under
CalPERS law shall contribute 9% for the first two years of the
Agreement and for the next three years, legacy or classic
employees shall contribute 12% (9% employee share and 3%
employer share). PEPRA employees shall contribute 50% of the
normal cost as defined under the Act.
c) Section F of the prior MOU regarding 9% EMPC shall be removed
from the new Agreement.
d) The "post survivors retirement" benefit in accordance with § 21624
and § 21635 of the Public Employees' Retirement Law (PERL) that
is currently provided by the City in its contract with CalPERS
agreement will be referenced in the new MOU.
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Exhibit "A"
5. Article III, Compensation, Section 3 — Overtime
The language in the prior MOU shall be incorporated into the new
Agreement with the exception of Section 3(c) regarding compensatory
time. Effective July 1, 2015, all compensatory time shall be capped at 240
hours. Any compensatory time in excess of 240 hours shall be placed in a
separate bank (Excess Comp Time Bank "ECT) and shall be cashed out
as follows:
• October 15, 2015 paycheck = 25%
• January 15, 2016 paycheck = 25%
• April 15, 2016 paycheck = 25%
• July 15, 2016 paycheck = 25%
Any SBPOA unit members who separate prior to July 15, 2015, shall be
paid for all unused compensatory time in full. For the October 15, 2015
payment, the City Manager has the discretion to cash out more than 25%
so long as it does not bring the SBPOA member below the 240 hour cap.
All accumulated compensatory time shall be paid to a unit member upon
promotion of the member.
6. Article III, Compensation.
The following provisions in Article III Compensation of the prior MOU will
be incorporated into the new Agreement:
a) Section 4 —Assignment to Higher Position
b) Section 5 — On-Call/Call-Back/Standby
c) Section 6 — Educational Incentive
d) Section 7 — Court Fines
e) Section 8 — Bilingual Pay
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Exhibit "A"
7. Article IV Fringe Benefits, Section 1 — Health/Life Insurance— Active
Employees
The following sections of the existing language in Section 1 will be modified as
follows:
A. For Plan Year or calendar year 2015, the City shall contribute
$855.38 per month toward health premiums for the Employee
Plus One dependent or Family Coverage. For calendar year
2015, the City shall contribute $ 508.21 per month toward
health premiums for employees with Employee Only coverage.
In Plan Year (Calendar Year) 2016, the City's contribution
toward health care premiums will be paid at 100% (Employee
Only), 85% (Employee + 1), and 75% (Employee + family),
using the Kaiser premiums then in effect. Thereafter the City
and the SBPOA will share 50-50 of the dollar increase to the
Kaiser premiums for the next two years of the Agreement.
During years four and five of the Agreement, the 50-50 cost
sharing of the increased Kaiser premiums would be continued,
however, the City's contribution during the last 2 years of the
Agreement would be capped at 3% per year. At the end of the
Agreement, the 3% cap would sunset, unless otherwise
modified by the City and the SBPOA.
The amount of the City's contribution is based on the selection
of the "medical" enrollment category. If an employee elects
"employee only" medical coverage, then the "employee only"
allowance is given to the employee. Any contribution not utilized by
the employee shall revert to the City.
Sections B, C, D, E, F, G, and H will be included in the new
Agreement. The following provisions shall also be included:
I. An employee who does not want to enroll in any health care
plan offered by the City must provide evidence of group health care
insurance coverage, and execute a "Waiver of Benefits and Release
Agreement" releasing the City from any responsibility or liability to provide
health care insurance coverage on an annual basis. For calendar year 2015,
employees who waive the City's health care insurance shall receive a
stipend of$ 2,000 on December 15`", 2015. Such payment is not considered
compensation for purposes of CalPERS and is subject to state and federal
taxes. Employees participating in this option are required to waive all
medical, dental, and vision insurance coverage from the City.
J. The SBPOA agrees to participate in the City's Joint Labor-
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Exhibit "A"
Management Health Benefits Committee ("Committee") to evaluate, on an
annual basis, City-wide plan designs for health care. All plan designs and
City contributions shall be effective January 1St annually.
K. Employees must be in a paid status for fifteen (15) consecutive
days in any given month to receive the benefits of this Article, unless the
employee is on a qualifying approved leave, such as Family Medical Leave,
and is eligible for benefit continuation under applicable State or Federal law.
8. Article IV Fringe Benefits, Section 2 — Post Retirement Medical Benefits
This section will be eliminated in the new Agreement.
9. Article IV, Fringe Benefits.
The following provisions will be included in the new Agreement:
a) Section 3 — Rain Gear/Utility Uniforms
b) Section 4 — Books and Tuition Allowance
c) Section 5 — Deferred Compensation
d) Section 6 — Safety Equipment
e) Section 7 — Replacing/Repairing Personal Property
10. Article V, Leaves
The monetary value of all pre-petition leave bank accruals, including
without limitation, vacation, sick leave, concession leave, and holiday leave, will
be the subject of distribution as part of the bankruptcy unsecured creditors' pool.
All leave balances accrued on or before August 1, 2012 (Pre-Petition Leave)
shall be placed in the unsecured creditor pool and will not be available for use by
the SBPOA members. This position is consistent with the Recovery Plan
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Exhibit "A"
adopted by the City Council on May 18, 2015. Under the City's Recovery Plan,
all City employees are subject to these restrictions on pre-petition leaves. With
the exception of post-petition vacation accrual, all post-petition leave accruals will
be deferred pending the final approval and effective date of a Plan of Adjustment
by the Bankruptcy Court.
11. Article V, Leaves, Section 1 — Vacations
Vacation leave will continue to accrue in accordance with Section A of the
prior MOU. Prior to the final approval and the effective date of the City's
Plan of Adjustment by the Bankruptcy Court, all post-petition vacation
accruals shall be paid in accordance with Resolution 2014-158, adopted
by the Mayor and Common Council on June 16, 2014.
12. Article V, Leaves, Section 2 — Holidays
All provisions in Section 2 regarding City-designated holidays shall be
incorporated into the new Agreement.
13. Article V. Leaves, Section 3 — Sick Leave
Sick leave will be defined as post-petition sick leave earned after August
1, 2012.
An employee may only accrue a maximum of 1040 hours of sick leave.
Any disability conversion of sick leave will be in accordance with State
law.
At the time of separation from service, any employee having 15 years of
continuous service with the City of San Bernardino, may cash out up to
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Exhibit "A"
50% of unused post-petition sick leave. At the time of separation from
service, any employee having 20 years of continuous service with the City
of San Bernardino, may cash out up to 75% of unused post-petition sick
leave.
Time off with pay for sick leave shall be considered as time worked for
purposes of the accrual of sick leave only. Sick leave shall not
accumulate during periods of leave of absence without pay. Employees
will not be allowed to use unearned sick leave.
14. Article VI, Working Conditions
The following Sections of the prior MOU will be included in the new
Agreement:
a) Section 1 — Work Schedule
b) Section 2 — Shift Change
c) Section 3 — Probationary Period
d) Section 4 — Seniority
e) Section 5 - Reemployment
f) Section 6 — Physical Examinations
15. Article VII, General Provisions
This Article is replaced in its entirety by the following:
a) Term: The Term of this Agreement shall be five (5) years, commencing
on July 1, 2015. The dates of this Agreement shall be: 2015-2016; 2016-
2017; 2017-2018; 2018-2019; and 2019-2020.
b) In January 2020, either Party may submit to the other, a written
request to bargain for a successor agreement, including a list
of proposals on economic or non-economic issues.
c) Housing Incentives. During the term of this Agreement, the
City shall provide HUD housing incentives to officers
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Exhibit "A"
wishing to purchase homes within the City of San
Bernardino ("Community Revitalization Program"). Such
incentives shall represent a 50% discount from the list price
of the home. All participants in this program must commit to
live in the property for three (3) years. The City shall
provide to the SBPOA a summary of the terms of this
Community Revitalization Program.
d) Recruitment Obligations. The City and the SBPOA
acknowledge that there has been significant attrition of
police safety members and that coming to an agreement on
the essential terms and conditions of employment is the first
step in stabilizing the San Bernardino Police Department. In
recognition of the need to rebuild the Department, the
SBPOA agrees that, as a condition of an agreement to the
economic terms, it will actively participate in the formulation
and implementation of an aggressive recruitment campaign
to attract new hires and lateral police officers.
e) CaIPERS 13.989% Cost Sharing Imposition. The SBPOA agrees to
release any and all claims regarding the January 28, 2013 imposition of
the 13.989% cost sharing amount to the CalPERS contribution.
f) Per Diem policy shall be included as part of the new Agreement.
g) Dispute Resolution. The Parties acknowledge that there are terms and
conditions set forth above which may not be resolved by mutual
agreement. The Parties agree that in the event any disputes cannot be
resolved, such disputes shall be submitted to Judge Zive for resolution.
The following provisions have been reviewed and agreed to by the City's
and the SBPOA's bankruptcy counsel:
The SBPOA Settlement will provide that:
1. The MOU will become effective upon execution by the parties, provided
however that the MOU will become null and void and of no further effect if the
City's Plan of Adjustment is not approved by the Bankruptcy Court.
2. The City will append the MOU to its Plan of Adjustment, and the Plan and
confirmation order shall provide for Court approval of the MOU.
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Exhibit "A"
3. Under the Plan all claims of the SBPOA and its members with respect to
wages, pensions (including implementation of cost sharing and elimination of
the EPMC benefit), other benefits and other terms and conditions of
employment that arose prior to the date of the confirmation of the Plan,
including, without limitations, all claims arising from the City's changes to the
terms and conditions of employment and/or rejection of the prior MOU
(collectively the "Police Claims"), shall be treated as general unsecured
claims under the Plan, and the City and its officers shall be discharged from
such Police Claims upon confirmation of the Plan; provided, however, that
any claims arising under the MOU after it is executed by the City and the
SBPOA (e.g. grievances) shall not be discharged as long as (a) the SBPOA
complies with the terms of the SBPOA Settlement, and, (b) the Court confirms
the Plan.
4. The SBPOA shall support confirmation of the Plan that incorporates the
SBPOA Settlement.
5. The City and the SBPOA shall stipulate and agree on the amount of the
Police Claims. The SBPOA shall vote the full amount of the Police Claims in
favor of the Plan and shall file a brief in support of confirmation of the Plan.
6. The SBPOA Settlement is not a solicitation by the City, and the SBPOA's
commitment to vote the Police Claims in favor of the Plan is not effective until
the Court approves a Disclosure Statement that incorporated the SBPOA
Settlement.
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