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07-19-2011 - Meet and Confer ImpasseWest Covina General Employe - Item 14 Attach 1 (2).pdfCITY OF WEST COVINA CITY’S LAST, BEST AND FINAL PROPOSAL One (1) -Year Agreement May 12, 2011 NON-SWORN SAFETY SUPPORT EMPLOYEES ASSOCIATION The City faces significant financial challenges that have previously resulted in service level cuts, staffing reductions and large draw-downs of reserves. This situation worsens over the next three years as the City deals with reduced revenues as a result of the recession and increased retirement costs as the result of investment losses in the CalPERS pension fund. The City enters this upcoming fiscal year with a projected budget deficit of $7.3 million and projected cash reserves of $6 - $7 million. As this deficit is projected to grow in future years for the reasons mentioned above, the City must take immediate action to deal with the impending cash crisis and begin restructuring its cost structure and service models to establish a sustainable level of service for the long-term. This proposal attempts to provide immediate relief to the City’s budgetary situation and address some long-term financial issues, while preserving to the extent possible employee jobs and benefits. 1. Term of Agreement: One-year agreement commencing July 1, 2011 and ending midnight June 30, 2012. 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 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. 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. Attachment No. 1 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. 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 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. 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. 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. 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. 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. 11. Rideshare Program Effective July 1, 2011 the rideshare program resulting in additional leave hours and monthly raffles will no longer be available. 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. CITY OF WEST COVINA CITY’S LAST, BEST AND FINAL PROPOSAL One (1) -Year Agreement May 26, 2011 GENERAL EMPLOYEES ASSOCIATION The City faces significant financial challenges that have previously resulted in service level cuts, staffing reductions and large draw-downs of reserves. This situation worsens over the next three years as the City deals with reduced revenues as a result of the recession and increased retirement costs as the result of investment losses in the CalPERS pension fund. The City enters this upcoming fiscal year with a projected budget deficit of $7.3 million and projected cash reserves of $6 - $7 million. As this deficit is projected to grow in future years for the reasons mentioned above, the City must take immediate action to deal with the impending cash crisis and begin restructuring its cost structure and service models to establish a sustainable level of service for the long-term. This proposal attempts to provide immediate relief to the City’s budgetary situation and address some long-term financial issues, while preserving to the extent possible employee jobs and benefits. 1. Term of Agreement: One-year agreement commencing July 1, 2011 and ending midnight June 30, 2012. 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 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. 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. Attachment No. 2 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. 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. 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. 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. 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. 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. 11. Rideshare Program Effective July 1, 2011 the rideshare program resulting in additional leave hours and monthly raffles will no longer be available. 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. To: West Covina City Council Copy: West Covina Non-Sworn Safety Support Employees Association (San Bernardino Public Employees Association) Representative, Bonnie Escobar Clarke Office of the City Manager From: Andrew G. Pasmant, City Manager Date: June 23, 2011 SUBJECT: DECLARATION OF IMPASSE WITH THE WEST COVINA NON-SWORN SAFETY SUPPORT EMPLOYEES’ ASSOCIATION The City faces significant financial challenges that have previously resulted in service level cuts, staffing reductions and large draw-downs of reserves. This situation worsens over the next three years as the City deals with reduced revenues as a result of the recession and increased retirement costs, which occurred following investment losses in the CalPERS pension fund. The City enters the 2011-12 fiscal year with projected cash reserves of approximately $7 million and a recently adopted budget that contains a deficit of $1.8 million. As this deficit is projected to grow in future years for the reasons mentioned above, the City must take immediate action to deal with the impending cash crisis and begin restructuring its cost structure and service models to establish a sustainable level of service for the long-term. The City of West Covina’s negotiating team met with the Non Sworn Safety Support Employees’ Association with the goal of reaching agreement on a number of items that would provide relief to the City’s budgetary situation and address long-term financial issues, while preserving employee jobs and benefits to the extent possible. The following information will detail our progress. I. HISTORY OF MEETINGS The City’s negotiating team met and conferred, in good faith, with the West Covina Non-Sworn Safety Support Employees’ Association on the following dates:  2/22/11  3/30/11  4/19/11  4/27/11  5/12/11 II. AREAS OF AGREEMENT During negotiations both parties reached agreement on the following issues as it relates to a one-year contract: Attachment No.3 1. Term of Agreement: One-year agreement commencing July 1, 2011 and ending midnight June 30, 2012. 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. 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. 4. 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. City will discuss with the Unit replacing the PARS EPMC Supplemental Retirement Plan with additional contributions to the RHS plan. 5. 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. 6. 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. 7. Rideshare Program: Effective July 1, 2011 the rideshare program resulting in additional leave hours and monthly raffles will no longer be available. III. IMPASSE ISSUES 1. Retirement Benefits: A. CITY’S PROPOSAL  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. B. NON-SWORN SAFETY SUPPORT’S COUNTER PROPOSAL 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. 2. Vacation Maximum Accrual: A. CITY’S PROPOSAL 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. B. NON-SWORN SAFETY SUPPORT’S COUNTER PROPOSAL The Non-Sworn unit rejected the City’s proposal. 3. Lump Sum Payout of Leave Benefits: A. CITY’S PROPOSAL 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. B. NON-SWORN SAFETY SUPPORT’S COUNTER PROPOSAL The Non-Sworn unit rejected the City’s proposal. 4. Retiree Health Savings Plan: A. CITY’S PROPOSAL  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. B. NON-SWORN SAFETY SUPPORT’S COUNTER PROPOSAL  The Non-Sworn unit agreed with the above proposal.  Unit requested an extension of the sunset clause for the lump sum provision in the plan from 2017 to 2019.  Unit requested that anyone laid off during the term of the contract be paid the lump sum amount due to them upon retirement. 5. Other Items: A. NON-SWORN SAFETY SUPPORT’S ADDITIONAL PROPOSALS  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. IV. DECLARATION OF IMPASSE The City submitted its Last Best and Final offer to the Non-Sworn Safety Support unit on May 12, 2011. Additionally, communication was sent to Bonnie Clarke from the San Bernardino Public Employees Association, the representative for the Non-Sworn Safety Support Employees’ Association on June 8, 2011 by email, stating that a response from the group was necessary by June 21, 2011. On June 21, 2011 Bonnie Clarke notified the City that the group voted not to ratify the agreement and requested that the matter move to mediation. Based on the Personnel Policy, Sec. 16.8 B, the City Council must resolve this item by setting it for open session where both parties can present their position: Personnel Policy, Section 16.8 B: Memorandum of Understanding “If agreement is not reached with respect to any matter, the representatives of the recognized organization may file with the City Council a written statement of the organization’s position with reference to that matter. The City Manager may also file with the City Council a written statement of his/her position with reference to that matter. Before determining the issue, the City Council shall fix a time and place to receive any additional pertinent information that may be orally presented to it.” In order to adhere to the Personnel Policy, the matter of Impasse will be set before the City Council on Tuesday, July 5, 2011 at 7:00 p.m. in the City Council Chambers, during the regularly scheduled City Council meeting. The Non-Sworn Safety Support unit will be required to submit any written documents in support of their position to the City by June 29, 2011 at 5:00 p.m. to the City Clerk’s Office for inclusion in the City Council agenda packet. In addition, the unit will have the opportunity to provide an oral presentation on the night of the meeting. V. CONCLUSION The City of West Covina strives to meet the needs of its employees and values their work and skills. The matter of impasse is not a reflection of the City’s desire to unnecessarily reduce pay and/or benefits, but rather a necessity in its attempt to achieve a healthy budget that can withstand the short term and long-term impacts of the new economic environment the City is facing. DECLARATION OF IMPASSE To: West Covina City Council Copy: West Covina General Bargaining Unit (San Bernardino Public Employees Association) Representative, Bonnie Escobar Clarke Office of the City Manager From: Andrew G. Pasmant, City Manager Date: June 23, 2011 SUBJECT: DECLARATION OF IMPASSE WITH THE WEST COVINA GENERAL BARGAINING UNIT The City faces significant financial challenges that have previously resulted in service level cuts, staffing reductions and large draw-downs of reserves. This situation worsens over the next three years as the City deals with reduced revenues as a result of the recession and increased retirement costs, which occurred following investment losses in the CalPERS pension fund. The City enters the 2011- 12 fiscal year with projected cash reserves of approximately $7 million and a recently adopted budget that contains a deficit of $1.8 million. As this deficit is projected to grow in future years for the reasons mentioned above, the City must take immediate action to deal with the impending cash crisis and begin restructuring its cost structure and service models to establish a sustainable level of service for the long-term. The City of West Covina’s negotiating team met with the General Bargaining Unit with the goal of reaching agreement on a number of items that would provide relief to the City’s budgetary situation and address long-term financial issues, while preserving employee jobs and benefits to the extent possible. The following information will detail our progress. I. HISTORY OF MEETINGS The City’s negotiating team met and conferred, in good faith, with the West Covina General Bargaining Unit on the following dates:  2/17/11  3/22/11  4/19/11  4/27/11  5/9/11  5/26/11 II. AREAS OF AGREEMENT During negotiations both parties reached agreement on the following issues as it relates to a one- year contract: Attachment No. 4 1. Term of Agreement: One-year agreement commencing July 1, 2011 and ending midnight June 30, 2012. 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 . 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. 4. 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. City will discuss with the Unit replacing the PARS EPMC Supplemental Retirement Plan with additional contributions to the RHS plan. 5. 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. 6. 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. 7. 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. 8. Rideshare Program: Effective July 1, 2011 the rideshare program resulting in additional leave hours and monthly raffles will no longer be available. III. IMPASSE ISSUES 1. Retirement Benefits: A. CITY’S PROPOSAL 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. B. GENERAL BARGAINING UNIT’S COUNTER PROPOSAL COUNTER: Agree to the City’s proposal so long as the following clauses are 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. 2. Lump Sum Payout of Leave Benefits: A. CITY’S PROPOSAL 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. B. GENERAL BARGAINING UNIT’S COUNTER PROPOSAL COUNTER: Rejected. 3. Other Items: A. GENERAL BARGAINING UNIT’S ADDITIONAL PROPOSALS  If any other bargaining unit refuses to agree to concessions, City agrees not to ask more of the General Bargaining unit.  If any other bargaining unit receives wage/benefit increases, those same increases will be applied to the General Bargaining unit. IV. DECLARATION OF IMPASSE The City submitted its Last Best and Final offer to the General Bargaining Unit on May 17, 2011. Additionally, communication was sent to Bonnie Clarke, the representative for the General Bargaining Unit on June 8, 2011 by email, stating that a response from the group was necessary by June 21, 2011. On June 21, 2011 Bonnie Clarke notified the City that the group voted not to ratify the agreement and requested that the matter move to mediation. The City has the option to bypass the request for mediation and move to Impasse. Based on the Personnel Policy, Sec. 16.8 B, the City Council must resolve this item by setting it for open session where both parties can present their position: Personnel Policy, Section 16.8 B: Memorandum of Understanding “If agreement is not reached with respect to any matter, the representatives of the recognized organization may file with the City Council a written statement of the organization’s position with reference to that matter. The City Manager may also file with the City Council a written statement of his/her position with reference to that matter. Before determining the issue, the City Council shall fix a time and place to receive any additional pertinent information that may be orally presented to it.” In order to adhere to the Personnel Policy, the matter of Impasse will be set before the City Council on Tuesday, July 5, 2011 at 7:00 p.m. in the City Council Chambers, during the regularly scheduled City Council meeting. The General Bargaining Unit will be required to submit any written documents in support of their position to the City by June 29, 2011 at 5:00 p.m. to the City Clerk’s Office for inclusion in the City Council agenda packet. In addition, the unit will have the opportunity to provide an oral presentation on the night of the meeting. V. CONCLUSION The City of West Covina strives to meet the needs of its employees and values their work and skills. The matter of impasse is not a reflection of the City’s desire to unnecessarily reduce pay and/or benefits, but rather a necessity in its attempt to achieve a healthy budget that can withstand the short term and long term impacts of the current economy. W. C. HUMAN RESOURCES RECEIVED 1 IL 12 P 1 50 TO: West Covina City Council FROM: Bonnie Clarke Labor Relations Representative San Bernardino Public Employees Association Representing the West Covina Non-Sworn Safety Support Unit Date: July 7, 2011 SUBJECT: Statement to the City Council concerning the Impasse for the West Covina Non-Sworn Safety Support Unit The employees of the West Covina Non-Sworn Safety Support Unit clearly understand the financial challenges the City faces over the fiscal year 2011-2012. The employees also understand the financial challenges the City faced during the fiscal year 2010-2011 and the years prior. Each employee of the West Covina Non-Sworn Safety Support Unit has personally felt compensation cuts for the past three years. Although unit employees also faced the financial challenging times with the City we came to the negotiation table with an open ear with the intent to assist during these troubling times. We were willing to listen and heard from City officials that the City faced a financial deficit of $1.8 million. The employees of the Non-Sworn Safety Support Unit are willing to assist by paying the employee portion of the PERS retirement along with other concessions that the City wants; in return we want the City to listen with an open ear and work with us. We agree that the City met and conferred with the Non-Sworn Safety Support Unit for a total of five (5) meetings. The City presented concessions that they wanted from the Non Sworn Safety Support Unit and they did not deviate from those concessions. It was evident from the initial meet and confer meeting that the City was not going to change its position no matter what we brought to the table. It was also evident from the start that the City's intent was to achieve budgetary savings according to their terms. However, it is our position that we can come to an agreement, but let's get there mutually. We too met with the City in good faith in the hopes of assisting in the financial crisis the City is in. The City rejected all offers presented to them with little to no discussion on our counter proposals. Council needs to understand that the issue of impasse could have been avoided if the City would have met us part of the way. All but a few of the City's proposals had been tentatively agreed upon. The Non Sworn Safety Support Unit employees simply want some guarantee that the City will treat then equitably. We asked for that assurance through a "Me Too Clause" in the Contract for anything new that is negotiated for any bargaining unit related to wages and benefit also be given to the Non-Sworn Safety Support Unit. Agreement to the "Me Too Clause" would also guarantee the City that all of the proposals on the table would be agreed to. We fully understand that both the Fire and PD Unit contracts are not open for negotiations and we had no intention of the City providing us with benefits or salary increases that had already been previously negotiated for Fire and PD. The intent was to guarantee that if any "City bargaining unit, group or individuals receive wage increases, benefits, PERS contribution or deferred compensation in lieu of a raise or any other type of financial enhancement(s) during the term of the agreement, the City would apply such increases to the Non-Sworn Safety Bargaining Unit". We made it clear that benefits or salary increases that had been previously negotiated for any bargaining unit including Fire and PD was exempt from the "Me Too Clause". We are now before you and realize that the Impasse procedure will provide you with the opportunity to impose those concessions that the City initially brought to the table. In the long run we would have saved a lot of valuable time by not going through the negotiation process and had been presented with the City's Last, Best and Final offer weeks prior to when it was presented to us. The members of the Non Sworn Safety Bargaining Unit are proud to work for the City of West Covina and feel fortunate to have a job. They are willing to stand by the City and help with the current financial crisis the City is in, but have only asked that they be treated in the same manner that all the bargaining units have been treated in the past. We ask that you make it equitable for all employees. We ask that you the City Council refer this Impasse process to the next level of Mediation to resolve this issue as opposed to having your employees perceive your actions as punitive. Do the right thing for your employees. We feel that we were close to reaching an agreement. Your employees want, and have continued to step up during this failing economic climate in the interest of assisting the City reach their goal of a healthier budgetary level. W. C. HUMAN RESOURCES _ RECEIVED 11 IL 12 P150 TO: West Covina City Council FROM: Bonnie Clarke Labor Relations Representative San Bernardino Public Employees Association Representing the West Covina General Unit Date: July 7, 2011 SUBJECT: Statement to the City Council concerning the Impasse for the West Covina General Unit The employees of the West Covina General Unit also understand the financial challenges the City is facing as they have dealt with the financial hardship along with the City for over the past three years. Employees from the General Unit have felt first hand the results of the economic situation the City has been under. They have stepped up and assisted the city financially for the past three years and continue to be concerned about the ongoing budgetary crisis. During negotiations the Negotiating Team representing the employees of the General Unit heard from City officials that the City faced a financial deficit of $1.8 million. They are willing to assist by paying the employee portion of the PERS retirement along with other concessions that the City wants; in return employees want the City to listen with an open ear and work with them. We agree that the City met and conferred with the General Unit for a total of six (6) meetings. The City presented concessions that they wanted from the General Unit and they did not deviate from those concessions. It was evident from the initial meet and confer meeting that the City was not going to change its position no matter what we brought to the table. It was evident from the start that the City's intent was to achieve budgetary savings based on their terms. However, it is our position that we could come to an agreement, but we needed to get there mutually. The General Unit Negotiating Team met with the City in good faith in the hopes of assisting in the financial crisis the City is in. The City rejected all offers presented to them with little to no discussion on our counter proposals. Council needs to understand that the issue of impasse could have been avoided if the City would have met us part of the way. All but a few of the City's proposals had been tentatively agreed upon. The General Employee Unit employees also want some guarantee that the City will treat then equitably. They asked for an assurance of equity by asking for a "Me Too Clause" in their Contract. Specifically, for anything new that is negotiated for any bargaining unit related to wages and benefits would also be given to the employees of the General Unit. Agreement to the "Me Too Clause" would also guarantee the City that all of the proposals on the table would be agreed to. Employees of the General Unit fully understand that both the Fire and PD Unit contracts are not open for negotiations and there was no intention for the City to provide them with benefits or salary increases that had already been previously negotiated for Fire and PD. The General Unit presented four separate "Me Too Clauses" to the City that reflected some since of equity similar to other bargaining units. The intent was to guarantee that if any bargaining group or individual received an increase in wages, benefits, PERS contribution or deferred compensation in lieu of a raise or any other type of financial enhancement(s) in exchange for paying toward the employee's share of PERS, unit members would receive "in-kind compensation." It was made clear to the City's bargaining team that benefits or salary increases that had been previously negotiated for any bargaining unit including Fire and PD were exempt from the "Me Too Clause". We are now before you and realize that the impasse procedure will provide you with the opportunity to impose those concessions that the City initially brought to the table. In the long run we would have saved a lot of valuable time by not going through the negotiation process and had been presented with the City's Last, Best and Final offer weeks prior to when it was presented to us. The members of the General Unit are proud to work for the City of West Covina and feel fortunate to have a job. They are willing to stand by the City and help with the current financial crisis the City is in, but have only asked that they be treated in the same manner that all the bargaining units have been treated in the past. We ask that you make it equitable for all employees. We ask that you the City Council refer this impasse process to the next level of Mediation to resolve this issue as opposed to having your employees perceive your actions as punitive. We ask that you do the right thing for your employees. We feel that we were close to reaching an agreement. Your employees want, and have continued to step up during the failing economic climate in the interest of assisting the City reach their goal of a healthier budgetary level. AMA tvttirv-1- Ab 71 SBPEA Response to City's Proposals Non Sworn Safety Support Employees Unit April 27, 2011 Term of Agreement: One year agreement commencing July 1, 2011 and ending midnight, June 30, 2012. SBPEA RESPONSE: Agree Salary Increases: The City proposes no salary increases during the term of this agreement. The following adjustments to salaries are proposed in the 20011-12 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. SBPEA RESPONSE: Tentatively Agree 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. SBPEA RESPONSE: Tentatively Agree 4. Retirement Benefits: We are asking to participate in the following plan: 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 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. SBPEA PROPOSAL: Current employees enrolled in the 2.5% @ age 55 benefit formula will agree to pay the 8% employee contribution to PERS in return for 50 hours of compensation leave time (comp time). PARS/EPMC Supplemental retirement Plan: 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 that $5000. 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. SBPEA Response: Tentatively Agree to include above language in MOU 6. Lump Sum Payout of Leave Benefits: 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. SBPEA Response: We reject City's offer to reduce the grossed-up amount (x1.08%) currently paid. 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 $50 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. SBPEA Proposal: • Effective July 1, 2011, unit employees will contribute $25 per month into the RHSP. • Extend the Retirement Health Savings Sunset Clause to 2019 from 2017. • Retirement Health Lump Sum Payout We are Proposing that the City • Pay the Lump sum from the Retirement Health Saving Plan to the employee of the Non-Sworn Public Safety Unit if the employee is laid off during the term of the contract. (Currently employee is entitles to lump sum upon retirement only.) 8. Vacation Maximum Accrual — Maximum vacation accrual caps will revert to previous levels established in the July 1, 2009 MOU with a maximum cap of 320 hours. SBPEA Response: Maintain the current 360 cap on vacation accruals. 9. Uniform Allowance: Uniform allowances will revert to previous amounts established in the July 1, 2006 — June 30, 2009 MOU as follows: Community Service Officers - $700 per year, Jailers, Police Records Clerk I and II, and Public Safety Dispatchers at $600 per year. SBPEA Response: Tentative Agree 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. SBPEA Response: Tentatively Agree 11. Ride share Program: Effective July 1, 2011 the rideshare program resulting in additional leave hours and monthly raffles will no longer be available. SBPEA Response: Tentatively Agree 12. SBPEA Proposal: Should any other City Bargaining Unit or group refuse to participate in the City's efforts to resolve the budget deficit for FY 2011/12 the City agrees that it will not ask the Non-Sworn Safety Support Bargaining Unit to take additional cuts to make up for non-participation. 13. SBPEA Proposal: Should any other City Bargaining Unit(s), group or individual receive wage increases, benefits, PERS contributions or deferred compensation in lieu of a raise or any other type of financial enhancement(s) during the term of this agreement, the City shall apply such increases to the Non-Sworn Safety Bargaining Unit. kkteltimert4- 8 City of West Covina General Bargaining Unit 4th Proposal May 26, 2011 1. Term of Agreement — One year Agreement commencing July 1, 2011 through June 30, 2012 2. Salary Increase: The City proposes no salary increase during the teitu of this agreement. The following adjustments to salaries are proposed in the 2010- 2011fiscal year. .• Salary ranges will remain at current levels 3.6% salary reduction for 2010-2011 will terminate July 9, 2011 • Merit increases shall continue as scheduled for eligible employees 3. Benefits: City will maintain same level of health benefits and other benefits during the term of this MOU except as noted elsewhere in this MOU. 4. Retiree Health Savings Plan: • Effective July 1, 2011 City will resume contribution of $75 per month to the RNSP. 5. Holiday Closing Unit employees will be granted 30 hours of paid holiday leave to cover a holiday th th closing between December 26 — 30 . The 30 hours of paid leave is in addition to all other paid leave. Unit employees required to work during the holiday closing shall be allowed to use any hours not taken before the end of the fiscal year. t 6. Retirement Benefits: PIERS City wants employees to pay the entire PERS employee contribution of 8%. The City will continue to pay the PERS Employer contribution for each employee. RESPONSE: Would agree to pay 8% effective January 1, 2012 and ending June 30, 2012 If the City approves, adopts or extends a memorandum of understanding/side letter with any bargaining unit or group of the City that does not include a requirement that each employee pay its full employee contribution to PIERS (e.g. 8% for "miscellaneous" members; 9% for "safety" members), the City shall immediately begin paying the aforementioned 8% on the employee's behalf. If the City dose not come to an agreement with any bargaining unit or group within 60 days after the expiration of their contract the City shall immediately begin paying the aforementioned 8% PIERS on the employee's behalf. Unit employees will pay an amount of the employee's share of PERS equal to the amount being paid by miscellaneous, sworn police and fire employees not to exceed 8%. In the event miscellaneous, police or fire employees receive other salary or benefit compensation in exchange for paying toward the employee share of PIERS, unit employees shall receive "in-kind" compensation. Should any other City Bargaining Unit or group receive a wage/benefit increases during the term of this agreement, the City shall apply such increases to the General Bargaining Unit.