04-20-2021 - AGENDA ITEM 10 CONSIDERATION OF RESOLUTION NO. 2021-27 IMPOSING TERMS AND CONDITIONS OF EMPLOYMENT ON THE WEST COVINA FIRE MANAGEMENT ASSOCIATION PURSUANT TO GOVERNMENT CODE SECTIONS 3505.4, 3505.5, AND 3505.7AGENDA ITEM NO. 10
AGENDA STAFF REPORT
City of West Covina I Office of the City Manager
DATE: April 20, 2021
TO: Mayor and City Council
FROM: David Carmany
City Manager
SUBJECT: CONSIDERATION OF RESOLUTION NO.2021-27 IMPOSING TERMS AND
CONDITIONS OF EMPLOYMENT ON THE WEST COVINA FIRE MANAGEMENT
ASSOCIATION PURSUANT TO GOVERNMENT CODE SECTIONS 3505.4, 3505.5.
AND 3505.7
RECOMMENDATION:
It is recommended that the City Council take the following actions:
1. Conduct a public hearing regarding the impasse between the City and the West Covina Fire Management
Association.
2. At the conclusion of the public hearing, consider the following resolution for adoption:
RESOLUTION NO.2021-27 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
WEST COVINA, CALIFORNIA, IMPOSING TERMS AND CONDITIONS OF
EMPLOYMENT ON THE WEST COVINA FIRE MANAGEMENT ASSOCIATION
PURSUANT TO GOVERNMENT CODE SECTIONS 3505.4. 3505.5, AND 3505.7
BACKGROUND:
The West Covina Fire Management Association's Memorandum of Understanding expired on June 30, 2016.
Despite engaging in extensive negotiations, the City and the West Covina Fire Management Association were
unable to reach an agreement to address personnel -related cost -savings measures immediately needed as a
result of the City's dire financial condition, and fiscal emergency declared on May 19, 2020. The City
submitted its Last, Best and Final Offer to the West Covina Fire Management Association on August 21, 2020,
and the City subsequently declared impasse on September 2, 2020. The parties participated in a fact finding
hearing on December 8, 2020 with a three -member fact finding panel. The West Covina Fire Management
Association is the only labor group to not come to an agreement with the City to address personnel -related
cost -savings measures.
DISCUSSION:
In accordance with Government Code section 3505.5, the fact finding committee submitted the findings of fact
and recommended terms of settlement to the parties on March 5, 2021 along with a concurring and dissenting
opinion. On or around March 11, 2021, in accordance with Government Code section 3505.5, the City made
the findings and recommended terms of settlement from the fact finding panel publicly available by posting for
public inspection on the City's webpage for Memorandum of Understanding/Employee Contracts. Following a
Public Hearing no earlier than ten (10) days after receipt of the findings of fact and recommended terms of
settlement from the fact finding panel pursuant to Government Code section 3505.7, the parties will have
concluded the impasse resolution procedures as required by all applicable statutes, rules, regulations, and
agreements. The City Council is authorized to implement terms and conditions of employment on the West
Covina Fire Management Association to achieve the necessary cost -savings, and specifically, the terms of the
City's Last, Best and Final Offer. Such cost -savings measures include the suspension and reduction of certain
employment compensation and benefits.
The terms and conditions for employees in the West Covina Fire Management Association are described below
and are adopted.
1. The classic members' employee contribution to Ca1PERS shall be 12%.
2. The new members' employee contribution to Ca1PERS shall be 50% of normal cost or 12%, whichever
is more.
3. The entirety of the City/Employer's $150 contribution to Deferred Compensation provided to employees
shall be suspended through October 20, 2021.
4. The entirety of all Fire Service Longevity Pay (100%) shall be suspended through October 20, 2021.
5. The entirety of the Sick Leave Annual Cash -Out Program shall be suspended through October 20, 2021.
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 agreements currently in effect between the City and West Covina Fire Management
Association are to remain as terms and conditions of employment.
LEGAL REVIEW:
The City Attorney's Office has reviewed the proposed resolution and approved it as to form.
Prepared by: Helen Tran, Director of Human Resources/Risk Management Department
Fiscal Impact
FISCAL IMPACT:
Anticipated savings is approximately $20,000
Attachments
Attachment No. 1 - Resolution 2021-27 (FMA Imposition)
CITY Achieve Fiscal Sustainability and Financial Stability
COUNCIL Financial Recovery Plan/Corrective Action
GOALS &
OBJECTIVES:
ATTACHMENT NO.1
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF WEST COVINA, CALIFORNIA, IMPOSING TERMS
AND CONDITIONS OF EMPLOYMENT ON THE WEST
COVINA FIRE MANAGEMENT ASSOCIATION
PURSUANT TO GOVERNMENT CODE SECTIONS 3505.4,
3505.5, AND 3505.7
WHEREAS, the City of West Covina (hereinafter "Cit/,) and the West Covina Fire
Management Association (hereinafter `FMXwere signatories to a Memorandum of
Understanding (hereinafter "MOU) that expired on June 30, 2016 setting certain terms and
conditions of employment for employees in the FMA; and
WHEREAS, in January 2020, the City and the FMA negotiating teams began engaging in
negotiations over the terns of a successor MOU; and
WHEREAS, the City was 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 City's unassigned General Fund
balance has continuously declined; 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 finding vacancies in nine (9) positions citywide, layoffs 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 were not jeopardized, public health and safety were preserved, the City was able to pay
its obligations when due, and the City was able to pay its employees for the work they perform,
the City needed to 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 Emerge nc y
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 City's
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) 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; and
WHEREAS, the unforeseen economic impacts of the COVID-19 pandemic have been
significant, and the City's 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 budget estimates, with similar trends projected for 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 City's need to address its unforeseen
emergency costs and strained financial position; and
WHEREAS, on May 19, 2020, the City Council declared a fiscal emergency in Resolution
No. 2020-46; and
WHEREAS, the City was experiencing a month -to -month deficit cash flow and its cash
balance was projected to be depleted in its entirety and turn negative by September 2020; and
WHEREAS, if the City did not take immediate action to reduce personnel and benefits
related costs and expenditures, the City anticipated it would be unable to sustain its on -going
operating expenses, including payroll; and
WHEREAS, between May 2020 and July 2020, representatives of the City met with
representatives of the City's labor groups including the FMA, 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; and
WHEREAS, while the City was able to reach agreements with its eight (8) other labor
groups, the City and the FMA were unable to reach an agreement and continued engaging in
negotiations through August 2020;
WHEREAS, on August 21, 2020, the City's negotiating team submitted the City's Last,
Best and Final Offer to the FMA; and
WHEREAS, despite repeated efforts on the City's part to engage in good faith discussions
and negotiations with the FMA, the City and the FMA were unable to reach an agreement
regarding a 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, notwithstanding the efforts described above, the parties arrived at impasse
and the City provided the FMA with a written declaration of impasse on September 2, 2020; and
WHEREAS, on September 30, 2020, the FMA filed a request for factfinding pursuant to
Government Code section 3505.4; and
WHEREAS, on December 8, 2020, the City's negotiation team and the FMA participated
in a factfinding hearing with a three -member factfinding panel; and
WHEREAS, in accordance with Government Code section 3505.5, the factfinding
committee submitted the findings of fact and recommended terms of settlement to the parties on
March 5, 2021 along with a concurring and dissenting opinion; and
WHEREAS, on or around March 11, 2021, in accordance with Government Code section
3505.5, the City made the findings and recommended terns of settlement from the factfinding
panel publicly available by posting for public inspection on the City's webpage for Memorandum
of Understanding/Employee Contracts (htt s1/www.westcovina.ore/denartrnents/human-
resources-risk-management/memorandum-of-understanding-employee-contracts); and
WHEREAS, in accordance with Government Code section 3505.7, no earlier than ten (10)
days following receipt of the findings of fact and recommended tenor of settlement from the
factfinding panel, the City Council hell a public hearing on April 20, 2021 and considered the
impasse between the City and the FMA and the report and all recommendations from the
factfinding panel; and
WHEREAS, the parties have concluded the impasse resolution procedures as required by
all applicable statutes, rules, regulations, and agreements; and
WHEREAS, upon exhaustion of impasse remedies, and pursuant to Government Code
section 3505.7, the City Council is authorized to implement the City's August 21, 2020 Last, Best
and Final Offer.
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 terms and conditions for employees in the West Covina Fire
Management Association are described below and are adopted.
1. The classic members' employee contribution to CalPERS shall be 12%.
2. The new members' employee contribution to CalPERS shall be 50% of normal cost
or 12%, whichever is more.
3. The entirety of the City/Employer's $150 contribution to Deferred Compensation
provided to employees shall be suspended through October 20, 2021 (pay period
ending 10/15/2021).
4. The entirety of all Fire Service Longevity Pay (100%) shall be suspended through
October 20, 2021 (pay period ending 10/15/2021).
5. The entirety of the Sick Leave Annual Cash -Out Program shall be suspended
through October 20, 2021 (pay period ending 10/15/2021).
6. 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 agreements currently in effect between the City and the West Covina Fire
Management Association are to remain as term and conditions of employment.
SECTION 3. The changes pursuant to the terms and conditions of employment adopted
herein are effective starting with the May 1, 2021 pay period.
SECTION 4. The terns 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 Fire Management
Association.
SECTION 5. The City Clerk shall certify to the adoption of this Resolution and shall enter
it into the book of original resolutions.
APPROVED AND ADOPTED this 20th day of April, 2021.
Letty Lopez-Viado
Mayor
APPROVED AS TO 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. 2021-27 was duly adopted by the City Council of
the City of West Covina, California, at a regular meeting thereof held on the 20th day of April,
2021, by the following vote of the City Council:
AYES:
NOES:
ABSENT:
ABSTAIN:
Lisa Sherrick
Assistant City Clerk