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Home My WebLink About45-Human Resources -- . . -, ORIGINAL CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION From: Linn Livingston, Director of Human Resources Subject: SIDE LETTER AGREEMENT WITH FIRE SAFETY EMPLOYEES Dept: Human Resources Date: February 25, 2009 MICC Meeting Date: March 2, 2009 Synopsis of Previous Council Action: Recommended Motion: Adopt Resolution. d~~~) r Contact person: Linn Livinqston Phone: x5161 Supporting data attached: Ward: FUNDING REQUIREMENTS: Amount: Approx. $1.000.000 savinqs over 16 months Source: (Accl. No.) (Accl. Description) Finance: Council Notes: aV/P)ts~y .3/2 k<i 71' /..5 ~. I 3/;c./o 9 . #-24- ~ _ /A/3C-ED Agenda Item No ,!).5 1/~/{Yi ~ . . CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION Staff Report Subiect: Resolution Of The Mayor And Common Council Of The City Of San Bernardino Approving A Side Letter To Resolution No. 2005-66 For Full-Time, Fire Safety Employees, Adding Language In Article IV, Fringe Benefits: Section 1, Health/Related Insurance; Section 4, Deferred Compensation; Section 7, Vacation and Holiday Sell-Back; Section 8, Welfare Benefit Trust; And Article V, Leave Provisions: Section I, Vacation; Adding Section 7, Fire Leave; And Article VII, General Provisions, Section 2, Term Of Memorandum Of Understanding (MOU) Back!!round: As a result of the City's financial status, the Human Resources Department met and conferred with the Fire Safety employees. In an effort to assist the City, the bargaining unit agreed to employee concessions equaling approximately a ten percent (10%) reduction in salary. Effective with the payroll period beginning March 1, 2009 through June 30, 2010, it is recommended that the following actions be approved: The City's contribution towards healthcare premiums for members of the Fire Safety Employees Unit is reduced by $500 per month: Employee only Employee +IIFamily Current $534.03 $963.01 Proposed $ 34.03 $463.01 Any remaining amount of the 10% reduction will be achieved through a "Negotiated Concession" contribution by employees. The calculation will be based on the employee's current base monthly salary (approximately 3.5%). In return for the employee concessions, it is recommended that the following actions be adopted: y Extend the current Memorandum of Understanding (MOU) for Fire Safety employees for a one (I) year period (July 1, 2009 through June 30, 2010). y Each member will accrue four (4) hours of leave time per week between March 1,2009 and June 30,2010. The hours may be scheduled in the same manner as vacation time. There is no expiration or cash value except for Fire Safety employees who retire prior to June 30, 2010, who will be compensated for 50% of the accumulated leave hours. Effective March 1,2009 through June 30, 2010, members of the affected group will be limited to selling back or using only one year's worth of holiday and vacation accrual as outlined in their MOU. After June 30, 2010, the restrictions will be removed. In all cases, leave use will be arranged for and used according to established department policy. - ~ Fire Safety employees will be allowed to sell back holiday or vacation time anytime throughout the year. A minimum of24 hours must be requested per sell back. ~ The City will establish a Post Employment Health Plan (PEHP): 401 (a) Accumulated Benefit Conversion Program, Universal Reimbursement Account, and Insurance Premium Reimbursement Account. ~ Increase the vacation accrual maximum by 15%. Current Proposed 240 276 360 414 480 552 If the union can satisfy the City's liability concerns, the City will move forward to process VEBA contributions pre-taxed (if applicable) through payroll deduction. The City and members of the Fire Safety Employees Unit agree that if the economy were to improve prior to June 30, 2010, the following "trigger" language would be followed: The City agrees to restore the ten percent (10%) employee concession prior to June 30, 2010 if the City receives a Federal or State bailout or other windfall that can be applied to the General Fund with no limitations equal to or greater than 75% of the City's total projected deficit for that year. Financial Impact: This will result in approximately S 1,000,000 in savings over 16 months. Recommendation: Adopt Resolution. ~ Exhibit A SIDE LETTER AMENDMENT/AGREEMENT TO RESOLUTION 2005-66 FIRE SAFETY EMPLOYEES The following sets forth the Amendment to Resolution 2005-66 for full-time, Fire Safety Employees. This Side Letter amends the current language in Article IV, Fringe Benefits: Section I, Health/Related Insurance; Section 4, Deferred Compensation; Section 7, Vacation and Holiday Sell-Back; Section 8, Welfare Benefit Trust; And Article V, Leave Provisions: Section I, Vacation; Adding Section 7, Fire Leave; And Article VII, General Provisions, Section 2, Term Of Memorandum Of Understanding (MOU), by adding the following language to the referenced articles and sections: A. ARTICLE IV, FRINGE BENEFITS: SECTION HAl. HEALTH/RELATED INSURANCE "To achieve a 10% concession to the City of San Bernardino due to a fiscal deficit, Fire Safety employees agree to the following: Effective with the payroll period beginning March 1,2009, and continuing through June 30, 20 I 0, the City will reduce its healthcare premium contribution by $500 per month for all Fire Safety Employees. Any remaining amount needed to reach the 10% concession will be achieved through a "Negotiated Concession" contribution by employees. On or before June 30, 2009, the City will establish a medical benefit cash-out program for employees who opt out of the City's healthcare plans." B. ARTICLE IV, FRINGE BENEFITS: SECTION 4, DEFERRED COMPENSATION "The City agrees to contact current healthcare vendors to detennine if the City's current contracts can be amended to allow for the transfer of deferred compensation deposits to pay for medical premiums, up to a maximum of $3,000 annually. Costs to establish this program shall not exceed $500 annually and will be paid by the City. The City agrees to update the Union on a regular basis of issues and/or progress." C. ARTICLE IV, FRINGE BENEFITS: SECTION 7. V ACA TION AND HOLIDAY SELL- BACK "Effective March 1,2009, and continuing through June 30, 2010, members of the Fire Safety Employees Unit will be allowed to sell back vacation or holiday hours anytime throughout the year. A minimum of24 hours must be requested per sell-back." D. ARTICLE IV, FRINGE BENEFITS: SECTION 8, WELFARE BENEFIT TRUST "Effective March I, 2009, if the Union can satisfy the City's liability concerns, the City will move forward to process pre-tax VEBA contributions (if applicable) through payroll deductions. The City will establish the following Post Employment Health Plan (PEHP) programs: 1. 401 (a) Accumulated Benefit Conversion Program 2. Universal Reimbursement Account 3. Insurance Premium Reimbursement Account" E. ARTICLE V, LEAVE PROVISIONS: SECTION I, VACATION "Effective March 1,2009 the vacation maximum cap will increase by 15% as follows: - Exhibit A Current 240 360 480 With 15% Increase 276 414 552" F. ARTICLE V, LEAVE PROVISIONS: "SECTION 7: FIRE LEAVE Effective March 1,2009, and continuing through June 30, 2010, all Fire Safety employees will accrue four (4) hours of leave time per week with no expiration date or cash value except for Fire Safety employees who retire prior to June 30, 20 I 0, who will be compensated for 50% of the accumulated leave hours. Effective March 1,2009 through June 30, 2010, members of the affected group will be limited to selling back or using only one year's worth of holiday and vacation accrual as outlined in their MOU. After June 30, 2010, the restrictions will be removed. In all cases, leave use will be arranged for and used according to established department policy." G. ARTICLE VII. GENERAL PROVISIONS: SECTION 2, TERM "Effective March I, 2009, the term of this Memorandum of Understanding (MOU) extends through June 30, 2010. The City and members of the Fire Safety Employees Unit agree that if the economy were to improve prior to June 30, 2010, the following "trigger" language would be followed: The City agrees to restore the ten percent (10%) employee concession prior to June 30, 2010, if the City receives a Federal or State bailout or other windfall that can be applied to the General Fund with no limitations equal to or greater than 75% of the City's total projected deficit for that year." DATE: ATTEST: City Clerk FOR THE CITY: REPRESENTATIVES OF: FIRE SAFETY EMPLOYEES MARK WEINBERG, City Manager City of San Bernardino San Bernardino City Professional Firefighters Local 891 LINN LIVINGSTON, Director of Human Resources - ., 1 Resolution No. 2 3 RESOLUTION OF THE MA YOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO APPROVING A SIDE LETTER TO RESOLUTION NO. 2005-66 FOR FULL-TIME, FIRE SAFETY EMPLOYEES, ADDING LANGUAGE IN ARTICLE IV, FRINGE BENEFITS: SECTION 1, HEALTHIRELATED INSURANCE; SECTION 4, DEFERRED COMPENSATION; SECTION 7, V ACA T10N AND HOLIDAY SELL- BACK; SECTION 8, WELFARE BENEFIT TRUST; AND ARTICLE V, LEAVE PROVISIONS: SECTION 1, VACATION; ADDING SECTION 7, FIRE LEAVE; AND ARTICLE VII, GENERAL PROVISIONS, SECTION 2, TERM OF MEMORANDUM OF UNDERSTANDING (MOU) 4 5 6 7 8 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CIT OF SAN BERNARDINO AS FOLLOWS: 9 10 SECTION I: The City Manager of the City of San Bernardino and the Director of Human 11 Resources are hereby authorized and directed to execute on behalf of said City a Side Letter to 12 Resolution No. 2005-66 for full-time, Fire Safety employees, adding language in Article IV, 13 Fringe Benefits: Section I, Health/Related Insurance; Section 4, Deferred Compensation; Sectio 14 7, Vacation and Holiday Sell-back; Section 8, Welfare Benefit Trust; and Article V, Leave 15 Provisions: Section I, Vacation; adding Section 7, Fire Leave; and Article VII, General 16 Provisions, Section 2, Term of Memorandum of Understanding (MOU), a copy of which 17 amendment is attached hereto and incorporated herein marked as Exhibit A. 18 III 19 III 20 III 21 III 22 23 III 24 III 25 III III -1- r - 1 RESOLUTION OF THE MA YOR AND COMMON COUNCIL OF THE CITY 0 . SAN BERNARDINO APPROVING A SIDE LETTER TO RESOLUTION NO. 2005-6 FOR FULL-TIME, FIRE SAFETY EMPLOYEES, ADDING LANGUAGE IN ARTlCL IV, FRINGE BENEFITS: SECTION 1, HEALTH/RELATED INSURANCE; SECTION 4 DEFERRED COMPENSATION; SECTION 7, VACATION AND HOLIDAY SELL BACK; SECTION 8, WELFARE BENEFIT TRUST; AND ARTICLE V, LEAV I'ROVISIONS: SECTION 1, VACATION; ADDING SECTION 7, FIRE LEAVE; AND ARTICLE VII, GENERAL PROVISIONS, SECTION 2, TERM OF MEMORANDUM 0 UNDERSTANDING (MOU) 2 3 4 5 6 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor an 7 the Common Council of the City of San Bernardino at a meeting thereof, hel 8 9 on day of ,2009, by the following vote, to wit: 10 ABSTAIN ABSENT AYES NA YES COUNCILMEMBERS: ESTRADA BAXTER BRINKER VACANT KELLEY JOHNSON MCCAMMACK 11 12 13 14 15 16 17 18 Rachel G. Clark, City Clerk 19 Thc foregoing resolution IS hereby approved this day 0 20 ,2009. 21 22 Patrick J. Monis, Mayor City of San Bernardino Approved as to form: 23 JAMES F. PENMAN, City Attorney 24 25 -2-