Loading...
07-07-2020 - AGENDA ITEM 07 CONSIDERATION OF RESOLUTION ADOPTING TERMS AND CONDITIONS OF EMPLOYMENT FOR EMPLOYEES IN THE WEST COVINA POLICE OFFICERS’ ASSOCIATION (WCPOA)AGENDA ITEM NO. 7 AGENDA STAFF REPORT City of West Covina I Office of the City Manager DATE: July 7, 2020 TO: Mayor and City Council FROM: David Carmany City Manager SUBJECT: CONSIDERATION OF RESOLUTION ADOPTING TERMS AND CONDITIONS OF EMPLOYMENT FOR EMPLOYEES IN THE WEST COVINA POLICE OFFICERS' ASSOCIATION (WCPOA) RECOMMENDATION: That the City Council adopt the following Resolution: RESOLUTION NO.2020-74 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA ADOPTING TERMS AND CONDITIONS OF EMPLOYMENT FOR THE EMPLOYEES IN THE WEST COVINA POLICE OFFICERS' ASSOCIATION BACKGROUND: West Covina Police Officer Association (WCPOA) MOU is scheduled to expire on June 30, 2021. However, on January 30, 2020, the World Health Organization declared the novel coronavirus, COVID-19, outbreak a "public health emergency of international concern." On March 11, 2020, the World Health Organization elevated the public health emergency to the status of a pandemic. In California, Governor Gavin Newsom declared a State of Emergency on March 4, 2020. On the same date, Los Angeles County declared a local emergency and a local health emergency. The City of West Covina declared a local emergency on March 16, 2020. On March 19, 2020, Governor Newsom issued Executive Order N-33-20, mandating all individuals living in the State of California to stay at home or at their place of residence except as needed to maintain the continuity of operations of the federal critical infrastructure sectors. On the same date, the Los Angeles County Public Health Officer issued a Safer at Home Order for the Control of COVID-19, ordering, among other things, the immediate closure of: (1) non -essential retail businesses, (2) indoor malls and shopping centers, including all stores therein regardless whether they are essential or non -essential businesses, and (3) indoor and outdoor playgrounds for children, except for those located in childcare centers. As a result of the State and County stay-at-home orders, the City has experienced a decline in economic activity, which has impacted the City's revenues. City staff estimates a potential loss of $2.8 million in General Fund revenues for Fiscal Year (FY) 2019-20 and a continuing loss of $2.1 million in General Fund revenues in FY 2020-21. https://destinyhosted.com/print_ag_memo.Gfm?seq=864&rev_num=0&mode=6demal&reloaded=true&id=93782 1/4 APPROVED AND ADOPTED this 7th day of July, 2020. Tony Wu Mayor APPROVED AS FORM ATTEST Thomas P. Duarte Lisa Sherrick City Attorney Assistant City Clerk I, LISA SHERRICK, ASSISTANT CITY CLERK of the City of West Covina, California, do hereby certify that the foregoing Resolution No. 2020-74 was duly adopted by the City Council of the City of West Covina, California, at a regular meeting thereof held on the 7th day of July, 2020, by the following vote of the City Council: AYES: NOES: ABSENT: ABSTAIN: Lisa Sherrick Assistant City Clerk 11/24/2020 Print Staff Report In addition to the economic impacts from the COVID-19 pandemic, over the past five years, the City's General Fund reserves have continued to decline — in FY 2014-15, the unassigned fund balance was $20,531,695, in FY 2015-16, the unassigned fund balance was $15,032,389, in FY 2016-17, the unassigned fund balance was $14,119,078, in FY 2017-18, the unassigned fund balance was $11,979,653, in FY 2018-19, the unassigned fund balance was $9,884,913, and for FY 2019-20, the unassigned fund balance is projected to be $1,903,251. These reserves are insufficient to fully absorb the loss in revenue that will occur due to the COVID-19 pandemic. The City has also faced challenges in delivering a balanced budget in recent years. For example, to deliver a balanced budget for FY 2019-20, the City had to make significant cuts in expenditures, including layoffs of City employees, contracting out Building & Safety and Engineering functions, and not funding vacancies in City positions. Further, as of May 19, 2020, the City's General Fund deficit was $7,201,514. Due to the financial condition of the City, which has been exacerbated by the COVID-19 pandemic, the City Council unanimously declared a fiscal emergency on May 19, 2020. In declaring the fiscal emergency, the City Council authorized the City Manager to take any and all actions necessary to address the fiscal emergency, including reviewing and making changes to service agreements. Unfortunately, as outlined above, the City has faced significant fiscal challenges in recent years, which challenges were not foreseeable at the time the City entered into the MOU with the WCPOA. The COVID-19 pandemic, which effectively shut down the economy, was also not foreseeable at the time the City entered into the MOU. Due to this "irresistible, superhuman cause", which is expected to result in a loss to the City of approximately $2.8 million in General Fund revenues in the current fiscal year alone and which exacerbated the City's financial condition such that the City declared a fiscal emergency, the City is unable to perform its contractual obligations pursuant to the MOU. The City must stabilize its cash flow. The City is unable to determine when it will recover from the financial impacts of the pandemic and be in financial position to enable it to resume performance. The City Manager sent an all staff memorandum to City employees on April 29, 2020 and May 19, 2020 summarizing the City's need to address its unforeseen emergency costs and strained financial position. On May 15, 2020, the Los Angeles County Department of Auditor -Controller ("County Auditor -Controller") notified the City that due to delayed payments of property taxes due to the COVID-19 pandemic, the City's May 20, 2020 property tax remittance will be less than expected. On the same date, the County Auditor - Controller notified the Successor Agency that due to delayed payments of property taxes due to the COVID-19 pandemic, the Successor Agency's June 1, 2020 property tax remittance will be less than expected; and the City's General Fund reserves are insufficient to fully absorb the anticipated loss in revenue that will occur from the COVID-19 pandemic. As of May 19, 2020, the City's General Fund deficit was $7,201,514 and on May 19, 2020, the City Council declared a fiscal emergency in Resolution No. 2020-46 DISCUSSION: Between May 20, 2020 and July 7, 2020, representatives of the City met with representatives of the City's labor groups including West Covina Fire Management Association, West Covina Firefighters' Association I.A.F.F. Local 3226, West Covina Police Management Association, West Covina Non -Sworn Safety Support Employees' Association, West Covina Confidential Employees' Association, West Covina Maintenance and Crafts Employees' Association, West Covina Mid -Management Employees' Association, and West Covina General Employees' Association to discuss the City's unforeseen fiscal emergency and the need to immediately stabilize the City's cash flow through immediate cost savings measures through the reduction of personnel and benefits costs. The West Covina Fire Management Association, West Covina Firefighters' https://destinyhosted.com/print_ag_memo.Gfm?seq=864&rev_num=0&mode=6demal&reloaded=true&id=93782 2/4 11/24/2020 Print Staff Report Association I.A.F.F. Local 3226, West Covina Police Management Association, West Covina Non -Sworn Safety Support Employees' Association, West Covina Confidential Employees' Association, West Covina Maintenance and Crafts Employees' Association, West Covina Mid -Management Employees' Association, and West Covina General Employees' Association have put forth proposals on reduction of personnel and benefits costs and reached agreement on proposals to assist the City during this unprecedented time to assist the City in immediately stabilizing the City's cash flow through immediate cost savings measures. Despite repeated efforts on the City's part to engage in good faith discussions and negotiations with the West Covina Police Officers' Association ("WCPOA") between May 20, 2020 to July 7, 2020, including making multiple requests to meet with WCPOA, the WCPOA refuses to meet with the City to discuss proposals on reduction of personnel and benefits costs to assist the City on immediately stabilizing the City's cash flow through immediate cost savings measures. The City is currently experiencing a month -to -month deficit cash flow and its cash balance is projected to be depleted in its entirety and turn negative by September 2020. The City projects to have a negative cash balance at the end of December 2020 of $5,786,000. If the City does not take immediate action to reduce personnel and benefits related costs and expenditures, the City anticipates it will be unable to sustain its on -going operating expenses, including payroll; and because of the City's anticipated immediately forthcoming inability to sustain the current on -going operating expenses, including payroll, there is not a reasonable amount of time to complete the meet and confer process under the Meyers-Milias-Brown-Act, Government Code section 3500 et seq. The following actions set forth below constitute an emergency within the meaning of Government Code section 3504.5, authorizing the immediate implementation of such terms and conditions while the City completes any remaining aspects of the meet and confer process. This emergency is based upon the findings in this resolution and Resolution No. 2020-46, adopted by the City Council on May 19, 2020. 1. The classic members' employee contribution to Ca1PERS shall be 12% through end of December 2020. 2. The entirety of the City/Employer contribution to Deferred Compensation provided to employees shall be suspended through end of December 2020. 3. The entirety of the $600 cash amount provided to employees in lieu of receiving medical benefits, and the entirety of all cash amounts provided to employees covering the difference between the amount of the medical insurance premium and $600, shall be suspended through end of December 2020. 4. The entirety of the City/Employer contribution to the Retiree Health Savings Plan (RHSP) shall be suspended through end of December 2020. 5. The entirety of all Senior Officer Pay (100%) shall be suspended through end of December 2020. 6. Educational Incentive Pay shall be reduced by 50% through end of December 2020. 7. Bilingual Pay shall be reduced by 10% through end of December 2020. 8. Hazardous Pay and Assignment Pay shall be reduced by 10% through end of December 2020. 9. Holiday Pay for shift employees shall be reduced by 10% through end of December 2020. 10. Uniform and Maintenance Allowance and Payment shall be reduced by 10% through end of December 2020. 11. There shall be cap on the City/Employer contribution towards Medical Insurance coverage as follows: o Employee Only - $650.00 o Employee + 1 (dependent) - $1150.00 o Employee + Family - $1600.00. 12. The entirety of all Lateral Entry Employee Vacation Leave and Lateral Entry Sick Leave shall be suspended through end of December 2020. 13. The entirety of Tuition Reimbursement provided by City policy shall be suspended through June 30, 2021. 14. With the exception of the above terms and conditions of employment, all other terms and conditions of employment from any and all previous and current memoranda of understanding, amendments thereto, letters of understanding, and side letter agreements currently in effect between the City and the West Covina Police Officers' Association are to remain as terms and conditions of employment. https://destinyhosted.com/print_ag_memo.Gfm?seq=864&rev_num=0&mode=6demal&reloaded=true&id=93782 3/4 11/24/2020 Print Staff Report The terms and conditions of employment adopted are effective July 7, 2020. The terms and conditions of employment adopted herein supersede any all previous and current memoranda of understanding, amendments thereto, letters of understanding, and side agreements currently in effect between the City and the affected employee organizations. These terms and conditions of employment shall be immediately effective and the actions set forth in this resolution constitute an emergency within the meaning of Government Code section 3504.5, authorizing the immediate implementation of such terms and conditions while the City completes any remaining aspects of the meet and confer process. This emergency is based upon the findings in this resolution and Resolution No. 2020-46, adopted by the City Council on May 19, 2020. LEGAL REVIEW: The City's Labor Attorney, LCW, has reviewed and approved the Resolution as to form. Prepared by: Helen Tran, HR/Risk Management Director Fiscal Impact FISCAL IMPACT: The cost savings to the City through imposition of the terms and conditions of employment equals approximately $462,000 for six months. Attachments Attachment No. 1 - 2020-74 (West Covina Police Officers' Association) CITY Achieve Fiscal Sustainability and Financial Stability COUNCIL GOALS & OBJECTIVES: https://destinyhosted.com/print_ag_memo.Gfm?seq=864&rev_num=0&mode=6demal&reloaded=true&id=93782 4/4 ATTACHMENT NO. 1 RESOLUTION NO. 2020-74 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, ADOPTING TERMS AND CONDITIONS OF EMPLOYMENT FOR EMPLOYEES IN THE WEST COVINA POLICE OFFICERS' ASSOCIATION (WCPOA) WHEREAS, the City was recently listed by the California State Auditor as a fiscally challenged city based on criteria that ranked the fiscal health of over 470 California cities across the State; and WHEREAS, over the course of the past five (5) years, the Citys unassigned General Fund balance has continuously declined: in FY 2014-15, the unassigned fund balance was $20,531,695, in FY 2015-16, the unassigned fund balance was $15,032,389, in FY 2016-17, the unassigned fund balance was $14,119,078, in FY 2017-18, the unassigned fund balance was $11,979,653, in FY 2018-19, the unassigned fund balance was $9,884,913, and for FY 2019-20, the unassigned fund balance is projected to be $1,903,251;and WHEREAS, in order to deliver a balanced budget for FY 2019-20, the City made significant cuts in expenditures, including contracting out the Building & Safety and Engineering functions, not funding vacancies in nine (9) positions citywide, layoff of eight (8) employees, shifting some eligible salaries and benefits to special funds; and WHEREAS, in order to ensure, to the maximum extent possible, that essential services of the City are not jeopardized, public health and safety are preserved, the City is able to pay its obligations when due, and the City is able to pay its employees for the work they perform, the City must take immediate and comprehensive action to further reduce spending, including, but not limited to, spending on personnel and benefit costs; and WHEREAS, on January 30, 2020, the World Health Organization declared the novel coronavirus, COVID-19, outbreak a "public health emergency of international concern;" and WHEREAS, on March 4, 2020, Governor Gavin Newsom declared a State of Emergency as part of the State's response to the global novel coronavirus (COVID-19) outbreak; and WHEREAS, on March 11, 2020, the World Health Organization elevated the COVID-19 public health emergency to the status of a pandemic; and WHEREAS, on March 16, 2020, the City Manager, acting in the capacity of the Citys Director of Emergency Services, declared the existence of a local emergency due to the COVID-19 pandemic; and WHEREAS, on March 16, 2020, the Los Angeles County Public Health Officer ("Local Health Officer"), issued an Order for the Control of COVID-19, directing, among other things, the immediate closure of: (1) bars and nightclubs that do not serve food, (2) movie theatres, live performance venues, bowling alleys, and arcades, (3) gyms and fitness centers, and (4) wineries, breweries, and tap rooms that provide tastings; and WHEREAS, on March 17, 2020, the City Council adopted Resolution No. 2020- 19, ratifying the City Manager's proclamation; and WHEREAS, on March 19, 2020, Governor Newsom issued Executive Order N- 33-20, ordering all individuals living in the State of California to stay home or at their place of residence except as needed to maintain continuity of operations of the federal critical infrastructure sectors; and WHEREAS, on March 19, 2020, the Local Health Officer issued a Safer at Home Order for the Control of COVID-19, ordering, among other things, the immediate closure of: (1) nonessential retail businesses, (2) indoor malls and shopping centers, including all stores therein regardless whether they are essential or non -essential businesses, and (3) indoor and outdoor playgrounds for children, except for those located in childcare centers; and WHEREAS, the unforeseen economic impacts of the COVID-19 pandemic have been significant, and the Citys approximately 3,278 businesses are experiencing substantial losses; and WHEREAS, the City has experienced an unforeseen significant decline in economic activity due to the decline in business activity and the closure of all non- essential business establishments within the City due to the COVID-19 pandemic, thereby reducing revenues for Fiscal Year (FY) 2019-20 below budget estimates, with similar trends projected for FY 2020-21; and WHEREAS, City staff estimates a potential loss of $2,800,000 in General Fund revenues (i.e., sales tax, Transient Occupancy Tax, etc.) for FY 2019-20, and a continuing loss of $2,100,000 in General Fund revenues in FY 2020-21; and WHEREAS, the City Manager sent an all staff memorandum to City employees on April 29, 2020 and May 19, 2020 summarizing the Citys need to address its unforeseen emergency costs and strained financial position; and WHEREAS, on May 15, 2020, the Los Angeles County Department of Auditor - Controller ("County Auditor -Controller") notified the City that due to delayed payments of property taxes due to the COVID-19 pandemic, the Citys May 20, 2020 property tax remittance will be less than expected. On the same date, the County Auditor -Controller notified the Successor Agency that due to delayed payments of property taxes due to the COVID-19 pandemic, the Successor Agency's June 1, 2020 property tax remittance will be less than expected; and WHEREAS, the City's General Fund reserves are insufficient to fully absorb the anticipated loss in revenue that will occur from the COVID-19 pandemic; and WHEREAS, as of May 19, 2020, the City's General Fund deficit was $7,201,514; and WHEREAS, on May 19, 2020, the City Council declared a fiscal emergency in Resolution No. 2020-46; and WHEREAS, between May 20, 2020 and July 7, 2020, representatives of the City met with representatives of the City's labor groups including West Covina Fire Management Association, West Covina Firefighters' Association I.A.F.F. Local 3226, West Covina Police Management Association, West Covina Non -Sworn Safety Support Employees' Association, West Covina Confidential Employees' Association, West Covina Maintenance and Crafts Employees' Association, West Covina Mid -Management Employees' Association, and West Covina General Employees' Association to discuss the Citys unforeseen fiscal emergency and the need to immediately stabilize the City's cash flow through immediate cost savings measures through the reduction of personnel and benefits costs; and WHEREAS, the West Covina Fire Management Association, West Covina Firefighters' Association I.A.F.F. Local 3226, West Covina Police Management Association, West Covina Non -Sworn Safety Support Employees' Association, West Covina Confidential Employees' Association, West Covina Maintenance and Crafts Employees' Association, West Covina Mid -Management Employees' Association, and West Covina General Employees' Association have put forth proposals on reduction of personnel and benefits costs and reached agreement on proposals to assist the City during this unprecedented time to assist the City in immediately stabilizing the City's cash flow through immediate cost savings measures; and WHEREAS, despite repeated efforts on the Citys part to engage in good faith discussions and negotiations with the West Covina Police Officers' Association ("WCPOA") between May 20, 2020 to July 7, 2020, including making multiple requests to meet with WCPOA, the WCPOA refuses to meet with the City to discuss proposals on reduction of personnel and benefits costs to assist the City on immediately stabilizing the City's cash flow through immediate cost savings measures; and WHEREAS, the City is currently experiencing a month -to -month deficit cash flow and its cash balance is projected to be depleted in its entirety and turn negative by September 2020; WHEREAS, the City projects to have a negative cash balance at the end of December 2020 of $5,786,000; and WHEREAS, if the City does not take immediate action to reduce personnel and benefits related costs and expenditures, the City anticipates it will be unable to sustain its on -going operating expenses, including payroll; and WHEREAS, because of the City's anticipated immediately forthcoming inability to sustain the current on -going operating expenses, including payroll, there is not a reasonable amount of time to complete the meet and confer process under the Meyers - Milias-Brown-Act, Government Code section 3500 et seq. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The City Council finds that all of the foregoing recitals are true and correct and hereby incorporates and adopts them as findings and determinations by the City Council as if fully set forth herein. SECTION 2. The City Council finds that the need to immediately implement the terms and conditions of employment and take the actions set forth in this resolution constitute an emergency within the meaning of Government Code section 3504.5, authorizing the immediate implementation of such terms and conditions while the City completes any remaining aspects of the meet and confer process. This emergency is based upon the findings in this resolution and Resolution No. 2020-46, adopted by the City Council on May 19, 2020. SECTION 3. The terms and conditions for employees in the West Covina Police Officers' Association are described below and are adopted. 1. The classic members' employee contribution to CalPERS shall be 12% through end of December 2020. 2. The entirety of the City/Employer contribution to Deferred Compensation provided to employees shall be suspended through end of December 2020. 3. The entirety of the $600 cash amount provided to employees in lieu of receiving medical benefits, and the entirety of all cash amounts provided to employees covering the difference between the amount of the medical insurance premium and $600, shall be suspended through end of December 2020. 4. The entirety of the City/Employer contribution to the Retiree Health Savings Plan (RHSP) shall be suspended through end of December 2020. 5. The entirety of all Senior Officer Pay (100%) shall be suspended through end of December 2020. 6. Educational Incentive Pay shall be reduced by 50% through end of December 2020. 7. Bilingual Pay shall be reduced by 10% through end of December 2020. 8. Hazardous Pay and Assignment Pay shall be reduced by 10% through end of December 2020. 9. Holiday Pay for shift employees shall be reduced by 10% through end of December 2020. 10. Uniform and Maintenance Allowance and Payment shall be reduced by 10% through end of December 2020. 11.There shall be cap on the City/Employer contribution towards Medical Insurance coverage as follows: o Employee Only - $650.00 o Employee + 1 (dependent) - $1150.00 o Employee + Family - $1600.00. 12.The entirety of all Lateral Entry Employee Vacation Leave and Lateral Entry Sick Leave shall be suspended through end of December 2020. 13.The entirety of Tuition Reimbursement provided by City policy shall be suspended through June 30, 2021. 14. With the exception of the above terms and conditions of employment, all other terms and conditions of employment from any and all previous and current memoranda of understanding, amendments thereto, letters of understanding, and side letter agreements currently in effect between the City and the West Covina Police Officers' Association are to remain as terms and conditions of employment. SECTION 4. The terms and conditions of employment adopted herein are effective July 7, 2020. SECTION 5. The terms and conditions of employment adopted herein supersede any all previous and current memoranda of understanding, amendments thereto, letters of understanding, and side agreements currently in effect between the City and the West Covina Police Officers' Association. SECTION 6. The City Clerk shall certify to the adoption of this resolution and shall enter the same in the book of original resolutions and it shall become effective immediately.