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RESOLUTION (ID # 4151) DOC ID: 4151 D
CITY OF SAN BERNARDINO — REQUEST FOR COUNCIL ACTION
Agreement
From: Allen Parker M/CC Meeting Date: 12/07/2015
Prepared by: Nita McKay,
Dept: City Manager Ward(s): All
Subject:
Resolution of the Mayor and Common Council of the City of San Bernardino Approving
a Side Letter Agreement Between the City of San Bernardino and the Middle
Management Employees Represented by the Teamsters Local 1932 Extending the
Terms and Conditions of Employment. (#4151)
Current Business Registration Certificate: Not Applicable
Financial Impact:
The Side Letter Agreement to the Memorandum of Understanding between the City of
San Bernardino and the Middle Management Employees is consistent with the fiscal
plan included in the City's Bankruptcy Plan of Adjustment. The estimated cost for Fiscal
Year 2015-16 is $83,980 which is included in the Adopted Operating Budget approved
by the Mayor and Common Council.
Motion: Adopt the Resolution.
Synopsis of Previous Council Action:
August 22, 2007 - Resolution No. 2007-343 - Memorandum of Understanding between
the
City of San Bernardino and the Middle Management Employees Bargaining Unit
approved by the Mayor and Common Council.
July 9, 2014 - Resolution No. 2014-249 - Side Letter Agreement between the City of
San Bernardino and the Middle Management Employees detailing terms and conditions
of employment related to CalPERS retirement formulas, CalPERS cost sharing, and
details of leave accruals, approved by the Mayor and Common Council.
Background:
The term of the Middle Management Employees' Side Letter Agreement to their
Memorandum of Understanding expired on June 30, 2015. The City's negotiating team
has been meeting with representatives from the Middle Management Employees since
April 2015 to reach the agreed upon terms and conditions of employment detailed in the
attached Side Letter Agreement.
Both resolutions listed above remain in effect with the following changes to the San
Bernardino Middle Management Employees terms and conditions of employment. The
detailed verbiage is attached to this Resolution as Exhibit A.
Updated: 12/3/2015 by Nita McKay D Packet Pg. 99
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4151
1. Two year extension to the existing Memorandum of Understanding, including any
past one year extensions.
2. Cost of Living Adjustment of 2% effective July 1, 2015 and Cost of Living
Adjustment of 2% effective July 1, 2016.
3. Additional Administrative Leave, up to a maximum of 20 hours, may be
requested in writing with justification, recommended by the employee's
department head, and approved by the City Manager each fiscal year. At the
discretion of the City Manager, upon request by the department head prior to the
close of the fiscal year, a maximum of 20 hours of Administrative Leave may be
carried over to the following fiscal year. Administrative Leave has no cash value.
4. Include the following classifications to ARTICLE III- COMPENSATION; Section 6
- Overtime; D. FLSA:
i. Parks Maintenance Supervisor
ii. Community Fire Risk Reduction Supervisor
iii. Associate Engineer/Traffic
iv. Construction Manager
v. Maintenance Supervisor/Streets Operation & Maintenance
vi. Maintenance Supervisor/Right of Way Crew
5, Health Benefit Contribution - City to increase City's contribution to health benefits
for Plan Year 2016 (one time change) as follows: Employee Only - Increase of
$41.75 per month (10% increase) to $450.00 flat dollar amount per month;
Employee plus one/family - Increase of $65.83 per month (10% increase) to
$755.00 flat dollar amount per month for the term of this agreement. $2,500.00
per year for those employees declining health insurance coverage from the City
($2,000.00 in current MOU).
6. Holidays - Employees working a 4/10 work schedule will receive 10 hours of paid
holiday for the 12 City recognized holidays (employees working an 8 hour day
and those working a 9/80 work schedule will still be compensated for 9 hours per
holiday for the 12 City recognized holidays).
7. Jury Duty - The City shall pay all days that a Middle Management employee is
required to serve jury duty provided employee provides proper documentation.
8. Pre-Petition Leave Balances - Middle Management employees with pre-petition
leave balances (prior to August 1, 2012) will be allowed to utilize their pre-petition
leave balances, provided they use their post-petition leave balances in the same
leave category first. Upon separation from the City, employees will not receive
payment for any pre-petition leave balances, but the remaining pre-petition leave
balances will become part of the unsecured creditors' pool.
9. The Middle Management Unit Employees shall support confirmation of the Plan
of Adjustment that incorporates this agreement.
Updated: 12/3/2015 by Nita McKay D Packet Pg. 100
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City Attorney Review:
Supporting Documents:
pp q
Side Letter Agreement Middle Management 12-07-15 (DOCX)
APPENDIX A to MEMORANDUM OF UNDERSTANDING SIDE LETTER MIDDLE
MANAGEMENT 12-07-15 (DOCX)
Resolution - Middle Management Employees Side Letter Agreement 12-07-15 (DOC)
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Updated: 12/3/2015 by Nita McKay D Packet Pg. 101
Exhibit A
Side Letter Agreement between the City of San Bernardino ("City") and the Middle
Management Employees represented by the Teamsters Local 1932 extending the
terms and conditions of employment.
The following sets forth the Amendments to Memorandum of Understanding Resolution
2007-343 and Side Letter Agreement Resolution 2014-249 for full-time, non-safety,
Middle Management Employees. Both resolutions remain in effect with the following a
changes.
ARTICLE VII — GENERAL PROVISIONS
SECTION 4—Term of Side Letter to Memorandum of Understanding (MOU)
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The term of this Side Letter Agreement begins on July 1, 2015 and extends E
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through June 30, 2017. If negotiations regarding an MOU are in progress at the C
time this Side Letter expires or if the parties are at impasse, the terms of this
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Side Letter shall remain in effect until a successor MOU or Side Letter
Agreement is adopted by the Mayor and Common Council.
ARTICLE III — COMPENSATION r
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0 SECTION 1 —Wages
Effective July 1, 2015, all Middle Management employees will receive a Cost of
Living Adjustment of 2% to their current salary ranges/steps.
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Effective July 1, 2016, all Middle Management employees will receive an M
additional Cost of Living Adjustment of 2% to their salary ranges/steps.
ARTICLE III — COMPENSATION
SECTION 6 — Overtime
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The following will be added to Section 6 (A) Administrative Leave. Additional
administrative leave may be granted, up to a maximum of twenty (20) hours, with a
request in writing, including justification, recommended by the employee's
department head, and approved by the City Manager (or the Elected Official in J
non-manager directed departments) each fiscal year. At the discretion of the City
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Manager, upon request by the employee's department head, prior to the close of w
the fiscal year, a maximum of twenty (20) hours may be carried over to the
following fiscal year. Administrative Leave has no cash value and shall not be
paid out at any time. a
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Exhibit A
The following positions shall be included in Section 6 (D) to receive FLSA
Overtime.
i. Parks Maintenance Supervisor
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ii. Community Fire Risk Reduction Supervisor E
iii. Associate Engineer/Traffic
iv. Construction Manager Q
V. Maintenance Supervisor/Streets Operation & Maintenance
vi. Maintenance Supervisor/Right of Way Crew
The remaining paragraphs under Article I I I — Section 6 remain unchanged. N
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ARTICLE IV— FRINGE BENEFITS
SECTION 1 — Health/Life Insurance =
A. Effective January 1, 2016, the City will contribute:
o $450.00 per month towards the purchase of health care premiums for
"Employee with No Dependents." T_,
o $755.00 per month towards the purchase of health care premiums for Ln
"Employee Plus One or More Dependents." o
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Any employee who chooses not 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. Employees who do not enroll in a City health care plan during open
enrollment and execute the forms above, shall receive a stipend of $2,500.00 on
December 15 of each year covered by this MOU Side Letter Agreement.
Employees participating in this option are required to waive all medical, dental r
and vision insurance coverage provided by the City.
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The remaining paragraphs under Article IV— Section 1 remain unchanged.
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ARTICLE V— LEAVES
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SECTION 2 — Holidays
Effective January 1, 2016, all full-time employees within the bargaining unit shall
be entitled to twelve (12) City-designated holidays, the equivalent of one hundred E
eight (108) holiday hours each year for those employees on a regular work U
schedule (8 hours per day Monday through Friday) or a 9/80 work schedule. a
Those employees on a 4/10 work schedule shall be entitled to twelve (12) City-
designated holidays, the equivalent of one hundred twenty (120) holiday hours
each year.
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Exhibit A
The remaining paragraphs under Article V— Section 2 remain unchanged.
ARTICLE V— LEAVES
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SECTION 12 — Jury Duty d
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Every unit employee and every employee, whose position is funded under a
federal law or is employed in a federally-funded position, if such benefit is r
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required by said federal law, are covered by this section. The City will pay for all
working days in a calendar year of a covered employee who is required to serve a
jury duty. '
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ARTICLE V— LEAVES
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NEW SECTION — Pre-Petition Leave Balances
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This section affects those Middle Management Unit employees employed by the
City on the approval date of this Side Letter Agreement who had existing leave
accruals for vacation leave, sick leave and holiday leave on August 1, 2012.
All vacation leave balances, sick leave balances and holiday leave balances that Ln
all employees in this bargaining group had accrued as of August 1, 2012 ("pre- h
petition leave") will be separated from post August 1, 2012 leave accruals ("post- N
petition leave") in each of these leave categories. Y
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Pre-petition leave balances, including vacation leave, sick leave and holiday
leave, may be utilized by employees in this bargaining group. However,
employees are required to utilize all post-petition leave accruals in each category
before they utilize any pre-petition leave accruals in the same leave category.
Upon separation from employment with the City, employees will receive payment
for any post-petition leave balances according to the terms and conditions a
outlined in their existing Memorandums of Understanding/Side Letter
Agreements and the final paragraph of this section. ,
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Upon separation from employment with the City, employees will not receive
payment for any pre-petition leave balances. The monetary value of all pre- _J
petition leave bank accruals will be placed in the unsecured creditors' pool and a
be the subject of distribution as part of the bankruptcy unsecured creditors' pool. U)
Upon final approval of the City's Plan of Adjustment by the Bankruptcy Court, any
remaining pre-petition leave balances, although available for use by current E
employees, will have no cash value to current employees upon separation from r
employment with the City. Q
Upon separation from employment with the City, with the exception of post-
petition vacation accruals, all post-petition leave accruals will be deferred
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Exhibit A
pending the final approval and effective date of a Plan of Adjustment by the
Bankruptcy Court.
ARTICLE VII — GENERAL PROVISIONS
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NEW SECTION — Support of City's Plan of Adjustment E
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The Middle Management Employees shall support confirmation of the Plan of Q
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Adjustment that incorporates this agreement (detailed in Appendix A to this Side w
Letter Agreement).
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For the City: For the Middle Management Employees:
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Attachment 1
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APPENDIX A to MEMORANDUM OF UNDERSTANDING (MOU) SIDE LETTER E
Bankruptcy Provisions and Release of Claims:
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1. The MOU Side Letter will become effective upon execution by the parties,
provided however, that the MOU Side Letter will become null and void and of no
further effect if the City's Plan of Adjustment (Plan) is not approved by the
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Bankruptcy Court.
2. The City will append the MOU Side Letter to its Plan of Adjustment, and the Plan
and confirmation order shall provide for Court approval of the MOU Side Letter. N
3. Under the Plan, all claims of the Middle Management Employees and its w
members with respect to wages, pensions (including implementation of cost w
sharing and elimination of the EPMC benefit), other benefits and other terms and a
conditions of employment that arose prior to the date of the confirmation of the Q
Plan, including, without limitations, all claims arising from the City's changes to
the terms and conditions of employment (collectively the "Employment Related W
Claims"), shall be treated as general unsecured claims under the Plan, and the o
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City and its officers shall be discharged from such Employment Related Claims
upon confirmation of the Plan; provided, however, that any claims arising under W
the MOU Side Letter after it is executed by the City and the Middle Management
Employees, e.g. grievances, shall not be discharged as long as (a) the Middle W
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Management Employees comply with the terms of the MOU Side Letter, o
including this Appendix A, and (b) the Court confirms the Plan. N
4. The Middle Management Employees shall support confirmation of the Plan that o
incorporates the MOU Side Letter, including this Appendix A. a
5. The City and the Middle Management Employees shall stipulate and agree on W
the amount of the Employment Related Claims. The Middle Management Z
Employees shall vote the full amount of the Employment Related Claims in favor =3
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of the Plan and shall indicate to the Court its support for confirmation of the Plan. 0
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6. This MOU Side Letter, including this Appendix A, is not a solicitation by the City, z
and the Middle Management Employees' commitment to vote the Employment
Related Claims in favor of the Plan is not effective until the Court approves a 0
Disclosure Statement that incorporates this MOU Side Letter.
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1 RESOLUTION NO.
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2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF a
SAN BERNARDINO APPROVING A SIDE LETTER AGREEMENT BETWEEN THE L
3 CITY OF SAN BERNARDINO AND THE MIDDLE MANAGEMENT EMPLOYEES
REPRESENTED BY THE TEAMSTERS LOCAL 1932 EXTENDING THE TERMS
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4 AND CONDITIONS OF EMPLOYMENT.
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5 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE
6 CITY OF SAN BERNADINO AS FOLLOWS:
7 SECTION 1. The City Manager and the Deputy City Manager of the City of San
8 Bernardino are hereby authorized and directed to execute on behalf of said City a Side Letter
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Agreement to Resolution No. 2007-343 and Resolution No. 2014-249,where both
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11 Resolutions remain in effect with the exception of the agreed upon terms and conditions of LO
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12 employment detailed in Exhibit A and Attachment 1 to this resolution. N
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I RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF E
SAN BERNARDINO APPROVING A SIDE LETTER AGREEMENT BETWEEN THE
2 CITY OF SAN BERNARDINO AND THE MIDDLE MANAGEMENT EMPLOYEES Q
REPRESENTED BY THE TEAMSTERS LOCAL 1932 EXTENDING THE TERMS L
3 AND CONDITIONS OF EMPLOYMENT.
4 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor 2
5 and Common Council of the City of San Bernardino at a meeting
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7 thereof,held on the day of ,2015,by the following vote, to wit:
8 Council Members: AYES NAYS ABSTAIN ABSENT a
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9 MARQUEZ
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BARRIOS 7t-
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VALDIVIA o
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13 SHORETT
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14 NICKEL aD
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15 JOHNSON r
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MULVIHILL
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19 Georgeann Hanna, City Clerk 0
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21 The foregoing Resolution is hereby approved this day of , 2015. E
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23 R. Carey Davis, Mayor
24 City of San Bernardino
Approved as to form:
25 Gary D. Saenz, City Attorney c
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27 By:
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