07-19-2011 - Meet and Confer ImpasseWest Covina General Employe - Item 14 (2).docCity of West Covina
Memorandum
AGENDA
Item No.: ____14 ____
Date: _July 19, 2011
TO: Andrew G. Pasmant, City Manager
and City Council
FROM: Michele L. McNeill, Acting Human Resources Director
SUBJECT: MEET AND CONFER IMPASSE
WEST COVINA GENERAL EMPLOYEES ASSOCIATION
WEST COVINA NON-SWORN SAFETY SUPPORT EMPLOYEES ASSOCIATION
RECOMMENDATION:
It is recommended that the City Council take the following actions:
Acknowledge receipt of the letters from the City Manager declaring impasse with General and Non-Sworn Safety Support Employees’ Associations.
Call for any such additional information each Association wishes to present either orally or in writing.
Barring the receipt of any new information that the City Council wishes to consider or further discuss with staff in closed session, (pursuant to Government code Section 54597.6 – CONFERENCE
WITH LABOR NEGOTIATOR; City negotiators: Pasmant, Bachman; Employee Organizations: General and Non-Sworn Safety Support Employees’ Associations), that the City Council determine the
meet and confer process is concluded and direct staff to implement the City’s last, best, and final offer.
If the decision by the City Council is to implement the City’s last, best, and final offer, it is recommended that the City Council adopt the following resolutions:
RESOLUTION NO. _______ - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, IMPOSING CHANGES TO THE TERMS AND CONDITIONS OF EMPLOYMENT FOR THE PERIOD OF JULY
1, 2011 THROUGH JUNE 30, 2012, ON EMPLOYEES REPRESENTED BY THE NON-SWORN SAFETY SUPPORT EMPLOYEES’ ASSOCIATION.
RESOLUTION NO. _______ - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, IMPOSING CHANGES TO THE TERMS AND CONDITIONS OF EMPLOYMENT FOR THE PERIOD OF JULY
1, 2011 THROUGH JUNE 30, 2012, ON EMPLOYEES REPRESENTED BY THE GENERAL EMPLOYEES’ ASSOCIATION.
DISCUSSION:
Staff has engaged in the formal meet and confer process with all five of the miscellaneous bargaining units to negotiate successor Memorandums of Understanding (MOU’s), as the prior
MOU’s expired on June 30, 2011. Three of the groups (Mid-Management, Confidential, and Maintenance & Crafts Employees’ Associations) were before the City Council on July 5, 2011, at
which time the City Council imposed the City’s last, best and final offer. The two remaining Miscellaneous groups are before the City Council this evening (Non-Sworn Safety Support
and General Employees’ Associations).
Due to the severe economic downturn, the City has been facing continual budget deficits over the last several years. These deficits, which are projected to grow over the next three
years, are due in large part to increases in the City’s pension costs. These growing deficits will result in lower staffing levels and reduced services. In an effort to mitigate the
impact on services to the community, the City focused its negotiations on ways to offset the rising pension costs, controlling employee leaves and discontinuing the furlough programs,
and limiting programs that caused administrative burdens on an already reduced staff. While attempting to address the City’s short-term cash flow issues, the goal of negotiations was
to also implement long-term strategies that address some of the structural issues contained in the City’s budget, while preserving employee jobs and benefits to the extent possible.
The City adopted a General Fund budget on June 7, 2011 that contained a $1.8 million deficit, down from an initial deficit of $7.3 million. Also contained in that adopted budget was
$625,000 in miscellaneous employee concessions.
Throughout these discussions, the units and the City placed a number of negotiable items on the table, however we were ultimately unable to reach agreement. The City submitted its last,
best, and final (LBF) offer (Attachments 1-2) to the two groups represented by the San Bernardino Public Employees’ Association (Non-sworn-Safety Support and General Employees’ Associations)
on May 12 and May 26, 2011 respectively. Both units voted down the City’s final offer and requested mediation.
The City subsequently declared impasse with these units via letter to the City Council dated June 23, 2011, (Attachments 3-4). The City asked that the groups respond to the Declaration
of Impasse by submitting written documents in support of their position to the City for inclusion into the City Council agenda packet. In addition, the units were invited to provide
an oral presentation during the July 19, 2011 City Council meeting. The City received letters from the Non-Sworn Safety Support and General units on July 12, 2011 stating their position
in the negotiations and the reasons they believe we could not come to agreement. (Attachments 5-6). Per the City’s Personnel Rules XVI Employer/Employee Relations, when either side
declares impasse, the matter is referred to the City Council.
Both the Non-Sworn Safety Support and General units have a clear understanding of the significant financial issues facing the City. Like the other miscellaneous units, throughout negotiations
they expressed a willingness to be part of the solution by making concessions, including paying their share of the pension contributions. While the specific items of agreement and
non-agreement are presented below for each group, the main issues that led to impasse are those related to equity and having all employees share in the burden of compensation reductions
to help address the City’s budget deficit. Miscellaneous employees are being asked to pay their employee share of pension costs, which constitutes the third year in a row they have
taken compensation reductions, while public safety units are receiving raises and increased benefits in the upcoming year. While the units acknowledge the existence of contracts with
the public safety units that do not expire until June 30, 2012, they requested “me-too” language that would have all employees, miscellaneous and safety alike, paying the same level
of pension costs in 2012-13.
City’s Last, Best, and Final Offer
The City’s Last, Best, and Final Offers (“LBF”) for both units contained the following main components:
Term of Agreement: One-year term ending June 30, 2012.
Salary Increases: No salary increases unless merit-based; furlough program and salary reductions from previous year terminates 7/9/11.
Benefits: Maintain current level of health benefits and other benefits.
Retirement Benefits: All current unit employees enrolled in the 2.5% @ 55 PERS formula would pay their 8% PERS EPMC (either staggered or in full as of 7/9/11 depending on the group’s
benefit structure). In addition the City will grant 30 hours of paid leave for employees from Christmas to New Years in FY 11/12.
PARS EPMC: Employees with less than $5,000 in the PARS EPMC Supplemental Retirement Plan will receive a lump sum at retirement—those with more than $5000
would receive an annuity. Employees hired after 7/1/11 would not be eligible to participate.
Lump Sum Payout of Leave Benefits: This would no longer be grossed up at the 1.08% rate, effective January 1, 2012.
RHS: City will continue its contribution into the Retiree Health Savings (RHS) plan, providing $75 per month with each employee providing $25 per month.
Vacation Maximum Accrual: Maximum vacation accruals would be capped at twice the annual accrual rate.
Uniform Allowance: Allowance will revert to previous amounts established in the 2006-2009 MOU. (Applicable to Non-sworn Only)
Advance Payment for Vacation: Provisions of Article Five, Section II.G of the existing MOUs providing advance payment of salary during the employee’s authorized vacation shall be deleted.
Rideshare: Program would be discontinued as of 7/1/11.
Impasse Issues by Bargaining Unit
The areas of agreement and impasse at the time of the City’s LBF can be reviewed below. In addition, each group’s response to the City’s LBF can be viewed in Attachments No.’s 5-6.
NON-SWORN SAFETY SUPPORT EMPLOYEES’ ASSOCIATION
Areas of Agreement:
1. Term of Agreement
2. Salary Increase
3. Benefits
5. PARS EPMC Supplemental Retirement Plan
9. Uniform Allowance
10. Advance Payment for Vacation
11. Rideshare Program
Areas of Impasse:
Retirement Benefits
Non-Sworn Safety Support agreed to pay the 8% PERS employer contribution and requests an additional 50 hours of leave vs. the 30 hours offered by the City.
Lump Sum Leave Payout of Benefits
The Unit proposed that leave payouts continue to be grossed up at 1.08%.
Retiree Health Savings Plan
The Unit proposed an extension of the sunset clause for the lump sum provision in the plan from 2017 to 2019.
The Unit requested that anyone laid off during the term of the contract be paid the lump sum amount due to them upon retirement.
Vacation Maximum Accrual
The Unit proposed that maximum accrual remain at 360 hours.
Additional Proposal from Non-Sworn Safety Support:
If any other bargaining unit refuses to agree to concessions, City agrees not to ask more of the Non-Sworn Safety Support unit.
If any other bargaining unit receives wage/benefit increases, those same increases will be applied to the Non-Sworn Safety Support unit.
GENERAL EMPLOYEES’ ASSOCIATION
Areas of Agreement
1. Term of Agreement:
2. Salary Increase:
3. Benefits
PARS EPMC Supplemental Retirement Plan
Retiree Health Savings Plan
8. Vacation Maximum Accrual
10. Advance Payment for Vacation
11. Rideshare Program
Areas of Impasse
4. Retirement Benefits
General unit agreed to the City’s proposal as long as the following clauses were added to the contract agreement:
Clause #1: If City does not require another group to pay their 8-9%, the City will begin paying General's 8% PERS.
Clause #2: If City doesn't reach agreement within 60 days after a group's contract has expired, City will immediately begin paying General's 8% PERS.
Clause #3: Employees will pay PERS up to 8% if all other groups pay their portion as well--if any of those groups receive compensation in exchange for PERS contribution, General group
shall receive in-kind compensation.
Clause #4: If any other group receives a wage/benefit increase during the term of the agreement, General shall also receive this benefit.
.
6. Lump Sum Leave Payout of Benefits
The Unit proposed that leave payouts continue to be grossed up at 1.08%.
Additional Proposal from General Unit:
If any other bargaining unit refuses to agree to concessions, City agrees not to ask more of the General unit.
If any other bargaining unit receives wage/benefit increases, those same increases will be applied to the General unit.
Impasse Process
Section 16.8 of the City’s Personnel Rules outlines the process for resolving the impasse that occurs when both sides cannot reach agreement on a successor MOU. Either party can declare
impasse. Once impasse has been declared, the City Council will allow both sides to present additional pertinent information to it in an open session. After hearing the presentations,
the Council may make a determination or recess into closed session to deliberate on the matter. The City Council has several options in making its final determination. Those options
are:
Impose the City’s last, best and final offer. (Attachments 1-2)
Agree with the Bargaining Groups’ last offer. (Attachments 7-8)
Refer the matter back to the City Manager for mediation.
Grant the City’s bargaining team additional authority and go back to the bargaining table.
Do nothing and allow the status quo to continue.
Staff recommends imposing the City’s last, best, and final offer. Staff does not recommend agreeing with the unit’s last offer, as it would result in either additional costs to the
City or hinder its ability to meet necessary cost reductions in order to achieve a balanced budget in the years ahead.
FISCAL IMPACT:
Total savings in the current fiscal year as a result of implementing the City’s last, best, and final offer for all miscellaneous units is estimated at $1.15 million, with $625,000 of
that amount in the General Fund. These savings are already included in the adopted 2011-12 budget.
____________________________________
Michele McNeill
Acting Human Resources Director
Attachments:
Attachment No’s. 1-2: City’s Last, Best, and Final Offers
Attachment No’s. 3-4: Declarations of Impasse
Attachment No’s. 5-6: Letters from SBPEA dated July 7, 2011
Attachment No’s. 7-8: Bargaining Groups’ Last Offer
RESOLUTION NO. __________
RESOLUTION NO. _______ - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, IMPOSING CHANGES TO THE TERMS AND CONDITIONS OF EMPLOYMENT FOR THE PERIOD OF JULY
1, 2011 THROUGH JUNE 30, 2012, ON EMPLOYEES REPRESENTED BY THE NON-SWORN SAFETY SUPPORT EMPLOYEES’ ASSOCIATION.
WHEREAS, the City of West Covina has met and conferred with the Non-Sworn Safety Support Employees’ Association represented by San Bernardino Public Employees Association; and
WHEREAS, the City and the Non-Sworn Safety Support Employees’ Association have met their obligation to meet and confer in good faith in an effort to reach agreement; and
WHEREAS, such discussions have failed to result in an agreement between the parties; and
WHEREAS, the City has declared impasse with the Non-Sworn Safety Support Employees’ Association; and
WHEREAS, the City Council has considered such written and verbal submissions by the parties as are pertinent to arriving at a course of action and have made a determination to implement
the City’s last, best, and final offer, which shall modify terms and conditions of employment in the City’s Memorandum of Understanding (MOU) with the Non-Sworn Safety Support Employees’
Association for the period of July 1, 2011 through June 30, 2012.
NOW, THEREFORE, the City Council of the City of West Covina does hereby resolve as follows:
SECTION 1. Term of Agreement: One-year agreement commencing July 1, 2011 and ending midnight June 30, 2012.
SECTION 2. Salary Increase: The City proposes no salary increase or other increase in compensation during the term of this agreement. The following adjustments to salaries are proposed
in the 2011-12 fiscal year:
Salary ranges will remain at current levels.
The 3.0% salary reduction received by employees in 2010-11 will terminate effective July 9, 2011.
Merit increases shall continue as scheduled for eligible employees
SECTION 3. Benefits: The City will maintain the current level of health benefits and other benefits during the term of this MOU except as noted elsewhere in this MOU.
SECTION 4. Retirement Benefits:
Employees hired by the City after January 1, 2011 shall be placed into the 2% @ age 60 benefit formula. The City shall pay 100% of the PERS employer cost for such employees and the
employees will pay 100% of the employee costs (7%).
Effective July 9, 2011, all unit employees currently enrolled in the 2.5% @ age 55 benefit formula shall pay 6% of the PERS employee contribution. Effective January 7, 2012, unit employees
will pay the entire PERS employee contribution (8%). Such employee contribution shall be made on a
pre-tax basis. The City shall continue to pay 100% of the PERS employer contribution for such employees.
City Hall will be closed during the Christmas to New Year’s week. Employees will not be required to use their leave banks during that week (30 hours). Those employees required to work
during that week will be granted a one-time 30 hours of comp time.
SECTION 5. PARS EPMC Supplemental Retirement Plan:
The City acknowledges the existence of the PARS EPMC Supplemental Retirement Plan (the “Plan”) and will include language stating this in MOU.
Unit employees currently enrolled in the Plan shall receive a lump sum payment of benefit, if the present value of the lifetime annuity is less than $5,000.
Effective July 1, 2011, unit employees currently enrolled in the Plan shall receive their benefit under this plan in monthly payments over their lifetime, if the present value of the
lifetime annuity is equal to or greater than $5,000.
Unit employees hired after July 1, 2011 will not be eligible to participate in the PARS EPMC Supplemental Retirement Plan
SECTION 6. Lump Sum Payout of Leave Benefits
Effective January 1, 2012, all lump sum payouts of leave benefits will no longer be paid at the grossed-up amount (x 1.08), but rather will be paid at the employees’ current hourly rate
of pay. This provision will apply to annual buyback programs and payoffs upon termination.
SECTION 7. Retiree Health Savings Plan
The City will contribute $75 per month into the Retiree Health Savings Plan (RHSP).
The employee will contribute $25 per month into the RHSP.
The language in Article Four Section VII. 3. – 6. of the existing MOU pertaining to contributions into the RHSP shall be deleted.
SECTION 8. Vacation Maximum Accrual
Maximum vacation accrual caps will revert to previous levels established in the July 1, 2006 – June 30, 2009 MOU with the maximum cap at 320 hours.
SECTION 9. Uniform Allowance
Uniform allowance will revert to previous amounts established in the July 1, 2006 – June 30, 2009 MOU as follows: Community Services Officers - $700 per year; Jailers, Police Records
Clerk I and II, and Public Safety Dispatchers at $600 per year.
SECTION 10. Advance Payment for vacation
The provisions of Article Five Section II. G. of the existing MOU providing advance payment of salary during the employee’s authorized vacation shall be deleted.
SECTION 11. Rideshare Program
Effective July 1, 2011 the rideshare program resulting in additional leave hours and monthly raffles will no longer be available.
SECTION 12. All other provisions of the existing MOU not changed by this agreement shall remain in full force and will be incorporated along with the provisions contained herein in a
successor agreement.
APPROVED and ADOPTED this 19th day of July 2011.
______________________________________
Mayor Steve Herfert
ATTEST:
_____________________________
City Clerk Laurie Carrico
I, LAURIE CARRICO, CITY CLERK of the City of West Covina, California do hereby certify that the foregoing resolution was duly adopted by the City Council of the City of West Covina,
California, at a regular meeting held thereof on the 19th day of July 2011, by the following vote of the City Council:
AYES:
NOES:
ABSENT:
ABSTAIN: _________________________________
City Clerk
APPROVED AS TO FORM:
________________________________
City Attorney Arnold Alvarez-Glasman
RESOLUTION NO. _______ - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, IMPOSING CHANGES TO THE TERMS AND CONDITIONS OF EMPLOYMENT FOR THE PERIOD OF JULY
1, 2011 THROUGH JUNE 30, 2012, ON EMPLOYEES REPRESENTED BY THE GENERAL EMPLOYEES’ ASSOCIATION.
WHEREAS, the City of West Covina has met and conferred with the General Employees’ Association represented by San Bernardino Public Employees Association; and
WHEREAS, the City and the General Employees’ Association have met their obligation to meet and confer in good faith in an effort to reach agreement; and
WHEREAS, such discussions have failed to result in an agreement between the parties; and
WHEREAS, the City has declared impasse with the General Employees’ Association; and
WHEREAS, the City Council has considered such written and verbal submissions by the parties as are pertinent to arriving at a course of action and have made a determination to implement
the City’s last, best, and final offer, which shall modify terms and conditions of employment in the City’s Memorandum of Understanding (MOU) with the General Employees’ Association
for the period of July 1, 2011 through June 30, 2012.
NOW, THEREFORE, the City Council of the City of West Covina does hereby resolve as follows:
SECTION 1. Term of Agreement: One-year agreement commencing July 1, 2011 and ending midnight June 30, 2012.
SECTION 2. Salary Increase: The City proposes no salary increase or other increase in compensation during the term of this agreement. The following adjustments to salaries are proposed
in the 2011-12 fiscal year:
Salary ranges will remain at current levels.
The 3.6% salary reduction received by employees in 2010-11 will terminate effective July 9, 2011.
Merit increases shall continue as scheduled for eligible employees
SECTION 3. Benefits: The City will maintain the current level of health benefits and other benefits during the term of this MOU except as noted elsewhere in this MOU.
SECTION 4. Retirement Benefits:
Employees hired by the City after January 1, 2011 shall be placed into the 2% @ age 60 benefit formula. The City shall pay 100% of the PERS employer cost for such employees and the
employees will pay 100% of the employee costs (7%).
Effective July 9, 2011, all unit employees currently enrolled in the 2.5% @ age 55 benefit formula shall pay 6% of the PERS employee contribution. Effective January 7, 2012, unit employees
will pay the entire PERS employee contribution (8%). Such employee contribution shall be made on a pre-tax basis. The City shall continue to pay 100% of the PERS employer contribution
for such employees.
City Hall will be closed the period of December 26 – 29, 2011. Employees will be granted this time off (30 hours) and not be required to use their leave banks. Unit employees required
to work during this period, due to work necessity as determined by management, shall be granted a one-time 30 hours of comp time.
SECTION 5. PARS EPMC Supplemental Retirement Plan:
The City acknowledges the existence of the PARS EPMC Supplemental Retirement Plan (the “Plan”) and will include language stating this in MOU.
Unit employees currently enrolled in the Plan shall receive a lump sum payment of benefit, if the present value of the lifetime annuity is less than $5,000.
Effective July 1, 2011, unit employees currently enrolled in the Plan shall receive their benefit under this plan in monthly payments over their lifetime, if the present value of the
lifetime annuity is equal to or greater than $5,000.
Unit employees hired after July 1, 2011 will not be eligible to participate in the PARS EPMC Supplemental Retirement Plan.
SECTION 6. Lump Sum Payout of Leave Benefits
Effective January 1, 2012, all lump sum payouts of leave benefits will no longer be paid at the grossed-up amount (x 1.08), but rather will be paid at the employees’ current hourly rate
of pay. This provision will apply to annual buyback programs and payoffs upon termination.
SECTION 7. Retiree Health Savings Plan
Effective July 1, 2011 the City will resume contributions of $75 per month into the Retiree Health Savings Plan (RHSP).
Effective July 1, 2011, unit employees will contribute $25 per month into the RHSP.
The language in Article Four Section VII. 3. – 6. of the existing MOU pertaining to contributions into the RHSP shall be deleted.
SECTION 8. Vacation Buyback/Maximum Accrual
Maximum vacation accrual caps will revert to previous levels established in the July 1, 2006 – June 30, 2009 MOU with the maximum cap at 320 hours.
SECTION 9. Advance Payment for Vacation
The provisions of Article Five Section II. G. of the existing MOU providing advance payment of salary during the employee’s authorized vacation shall be deleted.
SECTION 10. Rideshare Program
Effective July 1, 2011 the rideshare program resulting in additional leave hours and monthly raffles will no longer be available.
SECTION 11. All other provisions of the existing MOU not changed by this agreement shall remain in full force and will be incorporated along with the provisions contained herein in a
successor agreement.
APPROVED and ADOPTED this 19th day of July 2011.
______________________________________
Mayor Steve Herfert
ATTEST:
_____________________________
City Clerk Laurie Carrico
I, LAURIE CARRICO, CITY CLERK of the City of West Covina, California do hereby certify that the foregoing resolution was duly adopted by the City Council of the City of West Covina,
California, at a regular meeting held thereof on the 19th day of July 2011, by the following vote of the City Council:
AYES:
NOES:
ABSENT:
ABSTAIN: _________________________________
City Clerk
APPROVED AS TO FORM:
________________________________
City Attorney Arnold Alvarez-Glasman