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Home My WebLink About28- 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: May 27,2009 MICC Meeting Date: June 1,2009 Synopsis of Previous Council Action: On March 6, 2006, the Mayor and Common Council approved Resolution No. 2006-66, which implemented a Memorandum of Understanding (MOU) between the City of San Bernardino and employees in the Fire Safety Unit represented by San Bernardino Professional Firefighters. Recommended Motion: Adopt Resolution. Signature Contact person: Linn Livinqston Phone: x5161 Supporting data attached: Ward: FUNDING REQUIREMENTS: Amount: Approx. $1,425,400 savinqs over 13 months Source: (Acct. No.) (Acct. Description) Finance: Council Notes: ,irZ) Zc~'-- /~() .!JCVltJV.5Ly" #' /3 S//d/o~1 , Agenda Item No. 2.0 c,--I--oq 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 2006-66 for full-time, Fire Safety Employees, amending the current language in Article III, Compensation: Section 1, Salaries, Subsection (A); Article IV, Fringe Benefits: Section 1, Health/Related Insurance, Subsection (C); Article IV, Fringe Benefits: Section 4, Deferred Compensation; Article IV, Fringe Benefits: Section 7, Vacation and Holiday Sell-Back; Article IV, Fringe Benefits: Section 8, Welfare Benefit Trust; Article V, Leave Provisions: Section 1, Vacation, Subsection (E); adding Article IV, Fringe Benefits: Section 9, Post Employment Health Plan Programs; Article V, Leave Provisions: Section 7, Budget Concession Leave; and Article VII, General Provisions, Section 2, Term. Back2:round: As a result of the City's budget deficit, 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. Effective with the payroll period beginning June 1, 2009, through June 30, 2010, Fire Safety employees agree to participate by contributing an 8.7% "Negotiated Concession" based on their current base monthly salary. In return for the employee concessions, it is recommended that the following actions be adopted: 'r Extend the current Memorandum of Understanding (MOU) for Fire Safety employees for a one (1) year period (July 1,2009, through June 30, 2010). 'r Effective June 1, 2009, and continuing through June 30, 2010, employees will accrue four (4) hours of paid leave time per week. The hours will be scheduled in accordance with established departmental policy and will have no expiration date 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. Employees will not use leave time prior to July 1,2010. 'r Employees agree to sell back a minimum of 48 hours of vacation or holiday time on or before June 30, 2009, and an additional 48 hours prior to June 30, 2010. Employees who do not have a holiday/vacation balance of 48 hours on or before June 30, 2009 will sell back 96 hours of time in fiscal year 2009/2010. For fiscal year 2009/2010, all sell back forms will be submitted to the Finance Department by May 31, 2010. A minimum of 24 hours must be requested per sell back and employees will be allowed to sell back holiday or vacation time anytime throughout the fiscal year. Y The City will establish a Post Employment Health Plan (PEHP): 401 (a) Accumulated Benefit Conversion Program, Universal Reimbursement Account, and Insurance Premium Reimbursement Account. Y The City agrees to contact its healthcare vendors to determine 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. Y On or before January 1,2010, the City will establish a medical benefit cash-out program for employees who opt out of the City's healthcare plans. ? Effective June 1,2009, increase the vacation accrual maximum by 15%. Cap With 15% Increase 276 414 552 Current Cap 240 360 480 >- If the Firefighters' Union can satisfy the City's liability concerns, the City will move forward to process VEBA contributions pre-taxed (if applicable) through payroll deductions. >- The employee concessions are necessary during these very difficult economic times. The City and members of the Fire Safety Employees 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 $1,425,400 in savings over 13 months. Recommendation: Adopt Resolution. Exhibit A SIDE LETTER AMENDMENT/AGREEMENT TO RESOLUTION 2006-66 FIRE SAFETY EMPLOYEES This Side Letter amends the current language in Resolution 2006-66 for full-time, Fire Safety Employees, amending the current language in Article III, Compensation: Section 1, Salaries, Subsection (A); Article IV, Fringe Benefits: Section 1, Health/Related Insurance, Subsection (C): Article IV, Fringe Benefits: Section 4. Deferred Compensation: Article IV, Fringe Benefits: Section 7, Vacation and Holiday Sell-Back; Article IV, Fringe Benefits: Section 8, Welfare Benefit Trust; Article V, Leave Provisions: Section 1, Vacation, Subsection (E); adding Article IV, Fringe Benefits: Section 9, Post Employment Health Plan Programs; Article V, Leave Provisions: Section 7. Budget Concession Leave; and Article VII, General Provisions, Section 2, Tern1, by adding the follO\ving language to the referenced articles, sections and subsections: A. ARTICLE Ill, COMPENSATION: SECTION 1, SALARIES, SUBSECTION (A) "For the temporary period commencing with the payroll period beginning June 1, 2009. and continuing through June 30, 2010, employees agree to contribute a 5664 per month 'Negotiated Concession' to the City. The negotiated concession is a line item deduction on each employee's paycheck." B. ARTICLE IV, FRINGE BENEFITS: SECTION 1, HEALTH/RELATED INSURANCE, SUBSECTION (C) "On or before January 1, 2010, the City will establish a medical benefit cash-out program for employees who opt out of the City's healthcare plans." C. ARTICLE IV, FRINGE BENEFITS: SECTION 4, DEFERRED COMPENSATION "The City agrees to contact its healthcare vendors to determine 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. Annual program costs shall not exceed 5500 and will be paid by the City. The City agrees to update the Union on a regular basis of issues and/or progress." D. ARTICLE IV, FRINGE BENEFITS: SECTION 7, V ACA TION AND HOLIDAY SELL- BACK "Effective June 1,2009, employees will sell back a minimum of 48 hours of vacation and/or holiday time on or before June 30, 2009. Beginning July 1,2009, employees will sell back an additional 48 hours of vacation and/or holiday time before June 30, 2010. A minimum of 24 hours must be requested per sell back and employees will be allowed to sell back holiday or vacation time anytime throughout the fiscal year. Beginning June 1, 2009, employees may sell back holiday and/or vacation time up to six (6) shifts of holiday and ten (10) shifts of vacation on a fiscal-year basis at anytime throughout the fiscal year as long as a minimum of 24 hours is requested per sell-back and does not result in a negative vacation balance." E. ARTICLE IV, FRINGE BENEFITS: SECTION 8, WELFARE BENEFIT TRUST "Effective June 1, 2009, if the Firefighters Union can satisfy the City's liability concerns, the City will move forward to process pre-tax Voluntary Employee Benefit Association (VEBA) contributions ( if applicable) through payroll deductions." lIefJ/arpmt"'Yli ~j'-; 5"'1'8-o~ =It- / 3 Exhibit A F. ARTICLE IV, FRINGE BENEFITS: "SECTION 9, POST EMPLOYMENT HEALTH PLAN (PEHP) PROGRAMS The City will establish the following Post Employment Health Plan (PEHP) programs: I. 401 (a) Accumulated Benefit Conversion Program ") Universal Reimbursement Account 3. Insurance Premium Reimbursement Account" G. ARTICLE V, LEAVE PROVISIONS: SECTION 1, V ACA TION, SUBSECTION (E) "Effective June 1, 2009, vacation credits may accumulate an additional 15% as follows: Current Cap 240 360 480 Cap with 15% Increase 276 414 552" H. ARTICLE V, LEAVE PROVISIONS: "SECTION 7: BUDGET CONCESSION LEAVE Effective June 1, 2009, and continuing through June 30, 2010, employees will accrue four (4) hours of paid leave time per week. The hours will be scheduled in accordance with established departmental policy and will have no expiration date 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. Employees will not use leave time prior to July 1,2010." r. ARTICLE VII, GENERAL PROVISIONS: SECTION 2, TERM "Effective July 1, 2009, the tern1 of this Memorandum of Understanding (MOU) extends through June 30, 2010." The City and members of the Fire Safety Employees 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 LORI SASSOON, Acting City Manager City of San Bernardino San Bernardino City Professional Firefighters Local 891 LINN LIVINGSTON, Director of Human Resources 1 (Copy Resolution No. 2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO APPROVING A SIDE LETTER TO RESOLUTION 2006-66 FOR FULL TIME, FIRE SAFETY EMPLOYEES, AMENDING THE CURRENT LANGUAGE I ARTICLE III, COMPENSATION: SECTION 1, SALARIES, SUBSECTION (A); ARTICLE IV, FRINGE BENEFITS: SECTION 1, HEALTH/RELATED INSURANCE SUBSECTION (C); ARTICLE IV, FRINGE BENEFITS: SECTION 4, DEFERRE COMPENSATION; ARTICLE IV, FRINGE BENEFITS: SECTION 7, VACATION AN HOLIDAY SELL-BACK; ARTICLE IV, FRINGE BENEFITS: SECTION 8, WELFA BENEFIT TRUST; ARTICLE V, LEAVE PROVISIONS: SECTION 1, VACATION SUBSECTION (E); ADDING ARTICLE IV, FRINGE BENEFITS: SECTION 9, POS EMPLOYMENT HEALTH PLAN PROGRAMS; ARTICLE V, LEAVE PROVISIONS: SECTION 7, BUDGET CONCESSION LEAVE; AND ARTICLE VII, GENERA PROVISIONS, SECTION 2, TERM. 3 4 5 6 7 8 9 10 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CIT OF SAN BERNARDINO AS FOLLO'VS: 11 SECTION 1: The City Manager of the City of San Bernardino and the Director of Human 12 13 Resources are hereby authorized and directed to execute on behalf of said City a Side Letter to 14 Resolution 2006-66 for full-time, Fire Safety employees, amending the current language in 15 Article III, Compensation: Section 1, Salaries, Subsection (A); Article IV, Fringe Benefits: 16 Section 1, Health/Related Insurance, Subsection (C); Article IV, Fringe Benefits: Section 4, 17 Deferred Compensation; Article IV, Fringe Benefits: Section 7, Vacation And Holiday Sell- 18 Back; Article IV, Fringe Benefits: Section 8, Welfare Benefit Trust; Article V, Leave Provisions: 19 Section 1, Vacation, Subsection (E); adding Article IV, Fringe Benefits: Section 9, Post 20 Employment Health Plan Programs; Article V, Leave Provisions: Section 7, Budget Concession 21 Leave; and Article VII, General Provisions, Section 2, Term, a copy of which amendment is 22 attached hereto and incorporated herein marked as Exhibit A. 23 /1/ 24 11/ 25 t - / -0 ~ ;# :;2~ -1- 1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO APPROVING A SIDE LETTER TO RESOLUTION 2006-66 FOR FULL TIME, FIRE SAFETY EMPLOYEES, AMENDING THE CURRENT LA.~GUAGE IN ARTICLE III, COMPENSATION: SECTION 1, SALARIES, SUBSECTION (A); ARTICLE IV, FRINGE BENEFITS: SECTION 1, HEALTH/RELATED INSURANCE SUBSECTION (C); ARTICLE IV, FRINGE BENEFITS: SECTION 4, DEFERRE COMPENSATION; ARTICLE IV, FRINGE BENEFITS: SECTION 7, VACATION AN HOLIDAY SELL-BACK; ARTICLE IV, FRINGE BENEFITS: SECTION 8, \VELFA BENEFIT TRUST; ARTICLE V, LEAVE PROVISIONS: SECTION 1, VACATION SUBSECTION (E); ADDING ARTICLE IV, FRINGE BENEFITS: SECTION 9, POS EMPLOYMENT HEALTH PLAN PROGRAMS; ARTICLE V, LEAVE PROVISIONS: SECTION 7, BUDGET CONCESSION LEAVE; AND ARTICLE VII, GENERt\ PROVISIONS, SECTION 2, TERM. 2 3 4 5 6 7 8 9 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor an 10 the Common Council of the City of San Bernardino at a meeting thereof, hel lIon day of ,2009, by the following vote, to wit: 12 13 COUNCILMEMBERS: ESTRADA BAXTER BRINKER SHORETT KELLEY JOHNSON MCCAMMACK AYES NA YES ABSTAIN ABSENT 14 15 16 17 18 19 20 Rachel G. Clark, City Clerk 21 The foregoing resolution IS hereby approved this day 0 22 ,2009. 23 Patrick 1. Morris, Mayor City of San Bernardino Approved as to form: 24 JAMES F. PE1'<'MAN, 25 City At rney By: - 2- Exhibit A SIDE LETTER AMENDMENT/AGREEMENT TO RESOLUTION 2006-66 FIRE SAFETY EMPLOYEES This Side Letter amends the current language in Resolution 2006-66 for full-time, Fire Safety Employees, amending the current language in Article III, Compensation: Section 1, Salaries, Subsection (A); Article IV, Fringe Benefits: Section 1, Health/Related Insurance, Subsection (C); Article IV, Fringe Benefits: Section 4, Deferred Compensation; Article IV, Fringe Benefits: Section 7, Vacation and Holiday Sell-Back; Article IV, Fringe Benefits: Section 8, Welfare Benefit Trust; Article V, Leave Provisions: Section 1, Vacation, Subsection (E); adding Article IV, Fringe Benefits: Section 9, Post Employment Health Plan Programs; Article V, Leave Provisions: Section 7, Budget Concession Leave; and Article VII, General Provisions, Section 2, Term, by adding the following language to the referenced articles, sections and subsections: A. ARTICLE III, COMPENSATION: SECTION 1, SALARIES, SUBSECTION (A) "For the temporary period commencing with the payroll period beginning June 1, 2009 and continuing through June 30, 2010, employees agree to participate in an 8.7% 'Negotiated Concession' to the City. The negotiated concession is a line item deduction on each employee's paycheck based on their current base salary." B. ARTICLE IV. FRINGE BENEFITS: SECTION 1, HEALTH/RELATED INSURANCE, SUBSECTION (el "On or before January 1, 2010, the City will establish a medical benefit cash-out program for employees who opt out of the City's healthcare plans." C. ARTICLE IV. FRINGE BENEFITS: SECTION 4, DEFERRED COMPENSATION 'The City agrees to contact its healthcare vendors to determine 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 S3,000 annually. Annual program costs shall not exceed S500 and will be paid by the City. The City agrees to update the Union on a regular basis of issues and/or progress." D. ARTICLE IV, FRINGE BENEFITS: SECTION 7, V ACA TION AND HOLIDAY SELL- BACK "Effective June 1,2009, employees will sell back a minimum of 48 hours of vacation and/or holiday time on or before June 30, 2009. Beginning July 1, 2009, employees will sell back an additional 48 hours of vacation and/or holiday time before June 30, 2010. Employees who do not have a holiday/vacation balance of 48 hours on or before June 30, 2009 will sell back 96 hours of time in fiscal year 2009/2010. For fiscal year 2009/2010, all sell back forms will be submitted to the Finance Department by May 31,2010. A minimum of 24 hours must be requested per sell back and employees will be allowed to sell back holiday or vacation time anytime throughout the fiscal year. Beginning June 1,2009, employees may sell back holiday and/or vacation time up to six (6) shifts of holiday and ten (10) shifts of vacation on a fiscal-year basis at anytime throughout the fiscal year as long as a minimum of 24 hours is requested per sell-back and does not result in a negative vacation balance." E. ARTICLE IV, FRINGE BENEFITS: SECTION 8, WELFARE BENEFIT TRUST "If the Firefighters Union can satisfy the City's liability concerns, the City will move forward to process pre-tax V oluntary Employee Benefit Association (VEBA) contributions (if applicab Ie) through payroll deductions." t.:xhibit A F. ARTICLE IV, FRINGE BENEFITS: "SECTION 9, POST EMPLOYMENT HEALTH PLAN (PEHP) PROGRAMS The City will establish the following Post Employment Health Plan (PEHP) programs: 1. 401 (a) Accumulated Benefit Conversion Program ") Universal Reimbursement Account 3, Insurance Premium Reimbursement Account" G. ARTICLE V. LEAVE PROVISIONS: SECTION L VACATION, SUBSECTION (E) "Effective June, 1, 2009, vacatio~ credits may accumulate an additional 15% as follows: Cap with 15% Increase 276 414 Current Cap 240 360 480 552" H. l\RTICLE V. LEAVE PROVISIONS: "SECTION 7: BUDGET CONCESSION LEAVE Effective June 1, 2009, and continuing through June 30, 2010, employees will accrue four (4) hours of paid leave time per week. The hours will be scheduled in accordance with established departmental policy and will have no expiration date 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. Employees will not use leave time prior to July 1, 2010." 1. ARTICLE VII. GENERAL PROVISIONS: SECTION 2, TERM "Effective July 1,2009, the term of this Memorandum of Understanding (MOU) extends through June 30,2010." The City and members of the Fire Safety Employees 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: REPRESENTA TIVES OF: FIRE SAFETY EMPLOYEES San Bernardino City Professional Firefighters Local 891 CHARLES MCNEELY, City Manager City of San Bernardino LINN LIVINGSTON, Director of Human Resources 6/1/09, Item No. 28 Item History Backup distributed on 5/18/09, Item No. 13 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: May 6,2009 MICC Meeting Date: May 18, 2009 Synopsis of Previous Council Action: On March 6, 2006, the Mayor and Common Council approved Resolution No. 2006-66, which implemented a Memorandum of Understanding (MOU) between the City of San Bernardino and employees in the Fire Safety Unit represented by San Bernardino Professional Firefighters. Recommended Motion: Adopt Resolution. ~~ u{~k Signature Contact person: Linn Livinqston Phone: x5161 Supporting data attached: Ward: FUNDING REQUIREMENTS: Amount: Approx. $1,425,400 savinqs over 13 months Source: (Acct. No.) (Acct. Description) Finance: Council Notes: _It.tVi~k[ slt~/cq 1-# /3 Agenda Item No._ d ~ (p -/-()Cf CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION Staff Report Subject: Resolution of the Mayor and Common Council of the City of San Bernardino Approving a Side Letter to Resolution 2006-66 for full-time, Fire Safety Employees, amending the current language in Article III, Compensation: Section 1, Salaries, Subsection (A); Article IV, Fringe Benefits: Section 1, Health/Related Insurance, Subsection (C); Article IV, Fringe Benefits: Section 4, Deferred Compensation; Article IV, Fringe Benefits: Section 7, Vacation and Holiday Sell-Back; Article IV, Fringe Benefits: Section 8, Welfare Benefit Trust; Article V, Leave Provisions: Section 1, Vacation, Subsection (E); adding Article IV, Fringe Benefits: Section 9, Post Employment Health Plan Programs; Article V, Leave Provisions: Section 7, Budget Concession Leave; and Article VII, General Provisions, Section 2, Tenn. Back2;round: As a result of the City's budget deficit, 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 June 1,2009, through June 30,2010, Fire Safety employees agree to contribute a $664 per month "Negotiated Concession" to the City. In return for the employee concessions, it is recommended that the following actions be adopted: >- Extend the current Memorandum of Understanding (MOD) for Fire Safety employees for a one (1) year period (July 1,2009, through June 30, 2010). >- Effective June 1, 2009, and continuing through June 30, 2010, employees will accrue four (4) hours of paid leave time per week. The hours will be scheduled in accordance with established departmental policy and will have no expiration date 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. Employees will not use leave time prior to July 1, 2010. >- Employees agree to sell back a minimum of 48 hours of vacation or holiday time on or before June 30, 2009, and an additional 48 hours prior to June 30, 2010. A minimum of 24 hours must be requested per sell back and employees will be allowed to sell back holiday or vacation time anytime throughout the fiscal year. >- The City will establish a Post Employment Health Plan (PEHP): 401 (a) Accumulated Benefit Conversion Program, Universal Reimbursement Account, and Insurance Premium Reimbursement Account. r The City agrees to contact its healthcare vendors to determine 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. r On or before January 1,2010, the City will establish a medical benefit cash-out program for employees who opt out of the City's health care plans. r Effective June 1,2009, increase the vacation accrual maximum by 15%. Cap With 15% Increase 276 414 552 Current Cap 240 360 480 r If the Firefighters' Union can satisfy the City's liability concerns, the City will move forward to process VEBA contributions pre-taxed (if applicable) through payroll deductions. r The employee concessions are necessary during these very difficult economic times. The City and members of the Fire Safety Employees 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 proj ected deficit for that year. Financial Impact: This will result in approximately $1,425,400 in savings over 13 months. Recommendation: Adopt Resolution. Exhibit A SIDE LETTER AMENDMENT/AGREEMENT TO RESOLUTION 2006-66 FIRE SAFETY EMPLOYEES This Side Letter amends the current language in Resolution 2006-66 for full-time, Fire Safety Employees, amending the current language in Article III, Compensation: Section 1, Salaries, Subsection (A); Article IV, Fringe Benefits: Section 1, Health/Related Insurance, Subsection (C); Article IV, Fringe Benefits: Section 4, Deferred Compensation; Article IV, Fringe Benefits: Section 7, Vacation and Holiday Sell-Back; Article IV, Fringe Benefits: Section 8, Welfare Benefit Trust; Article V, Leave Provisions: Section 1, Vacation, Subsection (E); adding Article IV, Fringe Benefits: Section 9, Post Employment Health Plan Programs; Article V, Leave Provisions: Section 7, Budget Concession Leave; and Article VII, General Provisions, Section 2, Term, by adding the following language to the referenced articles, sections and subsections: A. ARTICLE III, COMPENSATION: SECTION 1, SALARIES, SUBSECTION (A) "For the temporary period commencing with the payroll period beginning June 1, 2009, and continuing through June 30, 2010, employees agree to contribute a $664 per month 'Negotiated Concession' to the City. The negotiated concession is a line item deduction on each employee's paycheck." B. ARTICLE IV, FRINGE BENEFITS: SECTION 1, HEALTH/RELATED INSURANCE, SUBSECTION (C) "On or before January 1, 2010, the City will establish a medical benefit cash-out program for employees who opt out of the City's healthcare plans." C. ARTICLE IV, FRINGE BENEFITS: SECTION 4, DEFERRED COMPENSATION "The City agrees to contact its healthcare vendors to determine 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. Annual program costs shall not exceed $500 and will be paid by the City. The City agrees to update the Union on a regular basis of issues and/or progress." D. ARTICLE IV, FRINGE BENEFITS: SECTION 7, VACATION AND HOLIDAY SELL- BACK "Effective June 1, 2009, employees will sell back a minimum of 48 hours of vacation and/or holiday time on or before June 30, 2009. Beginning July 1,2009, employees will sell back an additional 48 hours of vacation and/or holiday time before June 30, 2010. A minimum of 24 hours must be requested per sell back and employees will be allowed to sell back holiday or vacation time anytime throughout the fiscal year. Beginning June 1, 2009, employees may sell back holiday and/or vacation time up to six (6) shifts of holiday and ten (10) shifts of vacation on a fiscal-year basis at anytime throughout the fiscal year as long as a minimum of 24 hours is requested per sell-back and does not result in a negative vacation balance." E. ARTICLE IV, FRINGE BENEFITS: SECTION 8, WELFARE BENEFIT TRUST "Effective June I, 2009, if the Firefighters Union can satisfy the City's liability concerns, the City will move forward to process pre-tax Voluntary Employee Benefit Association (VEBA) contributions (if applicable) through payroll deductions." Exhibit A F. ARTICLE IV, FRINGE BENEFITS: "SECTION 9, POST EMPLOYMENT HEALTH PLAN (PEHP) PROGRAMS 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" G. ARTICLE V, LEAVE PROVISIONS: SECTION 1, VACATION, SUBSECTION (E) "Effective June 1, 2009, vacation credits may accumulate an additional 15% as follows: Current Cap 240 360 480 Cap with 15% Increase 276 414 552" H. ARTICLE V, LEAVE PROVISIONS: "SECTION 7: BUDGET CONCESSION LEAVE Effective June 1, 2009, and continuing through June 30, 2010, employees will accrue four (4) hours of paid leave time per week. The hours will be scheduled in accordance with established departmental policy and will have no expiration date 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. Employees will not use leave time prior to July 1, 2010." 1. ARTICLE VII, GENERAL PROVISIONS: SECTION 2, TERM "Effective July 1,2009, the term of this Memorandum of Understanding (MOU) extends through June 30, 2010." The City and members of the Fire Safety Employees 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 LORI SASSOON, Acting City Manager City of San Bernardino San Bernardino City Professional Firefighters Local 891 LINN LIVINGSTON, Director of Human Resources 'I " " 1 1 Resolution No. 2 RESOLUTION OF THE MAYOR A:"iD COM;\-ION COUNCIL OF THE CITY OF SAN BERNARDINO APPROVING A SIDE LETTER TO RESOLUTION 2006-66 FOR FULL TIME, FIRE SAFETY EMPLOYEES, AMENDING THE CURRENT LANGUAGE 11 ARTICLE III, COMPENSATION: SECTION 1, SALARIES, SUBSECTION (A); ARTICLE IV, FRINGE BENEFITS: SECTION 1, HEALTHlRELATED INSURANCE SUBSECTION (C); ARTICLE IV, FRINGE BENEFITS: SECTION 4, DEFERRE COMPENSATION; ARTICLE IV, FRINGE BENEFITS: SECTION 7, VACATION AN HOLIDAY SELL-BACK; ARTICLE IV, FRINGE BENEFITS: SECTION 8, WELFARE BENEFIT TRUST; ARTICLE V, LEAVE PROVISIONS: SECTION 1, VACATION SUBSECTION (E); ADDING ARTICLE IV, FRINGE BENEFITS: SECTION 9, POS EMPLOYMENT HEALTH PLAN PROGRAMS; ARTICLE V, LEAVE PROVISIONS: SECTION 7, BUDGET CONCESSION LEAVE; AND ARTICLE VII, GENERAL PROVISIONS, SECTION 2, TER.1'VI. 3 4 5 6 7 8 9 10 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CIT OF SAN BERNARDINO AS FOLLOWS: 11 SECTION 1: The City Manager of the City of San Bernardino and the Director of Human 12 Resources are hereby authorized and directed to execute on behalf of said City a Side Letter to 13 Resolution 2006-66 for full-time, Fire Safety employees, amending the current language in 14 15 Article III, Compensation: Section 1, Salaries, Subsection (A); Article IV, Fringe Benefits: 16 Section I, Health/Related Insurance, Subsection (C); Article IV, Fringe Benefits: Section 4, 17 Deferred Compensation; Article IV, Fringe Benefits: Section 7, Vacation And Holiday Sell- 18 Back; Article IV, Fringe Benefits: Section 8, Welfare Benefit Tmst; Article V, Leavc Provisions: 19 Section 1, Vacation, Subsection (E); adding Article IV, Fringe Benefits: Section 9, Post 20 Employment Health Plan Programs; Article V, Leave Provisions: Section 7, Budget Concession 21 Leave; and Article VII, General Provisions, Section 2, Tenn, a copy of which amendment is 22 attached hereto and incorporated herein marked as Exhibit A. 23 III 24 III 25 / , /' ' { -1- 1 i RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAJ BERNARDINO APPROVING A SIDE LETTER TO RESOL UTION 2006-66 FOR FeLLll TIME, FIRE SAFETY EMPLOYEES, AMENDING THE CURRENT LANGUAGE IN ARTICLE III, COMPENSATION: SECTION 1, SALARIES, SUBSECTION (A); ARTICLE IV, FRINGE BENEFITS: SECTION 1, HEALTH/RELATED INSURANCE~ SUBSECTION (C); ARTICLE IV, FRINGE BENEFITS: SECTION 4, DEFERRE COMPENSATION; ARTICLE IV, FRINGE BENEFITS: SECTION 7, VACATION AN HOLIDAY SELL-BACK; ARTICLE IV, FRINGE BENEFITS: SECTION 8, WELFARE BENEFIT TRUST; ARTICLE V, LEAVE PROVISIONS: SECTION 1, VACATION SUBSECTION (E); ADDING ARTICLE IV, FRINGE BENEFITS: SECTION 9, POS EMPLOYMENT HEALTH PLAN PROGRAMS; ARTICLE V, LEAVE PROVISIONS: SECTION 7, BUDGET CONCESSION LEAVE; AND ARTICLE VII, GENERAL PROVISIONS, SECTION 2, TERM. 2 3 4 5 6 7 8 9 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor an 10 the Common Council of the City of San Bernardino at a meeting thereof, hel 11 on day of , 2009, by the following vote, to wit: 12 13 COUNCILMEMBERS: ESTRADA ABSTAIN ABSENT NAYES AYES 14 BAXTER BRINKER 15 16 SHORETT KELLEY JOHNSON 17 18 MCCAMMACK 19 20 Rachel G. Clark, City Clerk 21 The foregoing resolution IS hereby approved this __ day 0 22 ,2009. 23 Patrick J. Morris, Mayor City of San Bernardino Approved as to form: 24 JAMES F. PENMAN, 25 City Attorney By: - 2 -