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HomeMy WebLinkAbout2010-06-08; City Council; 20249; Impasse Labor Negotiations City & Police CPOACITY OF CARLSBAD - AGENDA BILL 20.249AB# MTG. 06/08/10 DEPT. HR IMPASSE IN LABOR NEGOTIATIONS BETWEEN THE CITY AND THE CARLSBAD POLICE OFFICERS' ASSOCIATION (CPOA) DEPT. HEAD CITY ATTY. CITY MGR. RECOMMENDED ACTION: 1. By motion, determine to resolve the impasse that exists on the remaining disputed items between the City of Carlsbad and the Carlsbad Police Officers' Association (CPOA) by action of the City Council. 2. Adopt Resolution No. 2010-141 resolving the impasse on the remaining disputed items and adopting and implementing certain benefit terms and conditions for employees represented by the CPOA. ITEM EXPLANATION: The City and the Carlsbad Police Officers' Association (CPOA) representatives have been meeting and conferring since November 12, 2009 in an effort to reach agreement on a Memorandum of Understanding (MOU). The parties held several meetings over the last six months, supplemented by additional proposals that were exchanged electronically. As the parties failed to reach agreement and exhausted all possibilities of settlement, the City initiated the impasse procedure on April 27, 2010 pursuant to Section IV of the City's Employer- Employee Relations Rules and Regulations. The written request for an impasse meeting and a statement of the City's position on all disputed issues was sent to both the CPOA and the City Manager. An impasse meeting with the City Manager was held on May 4, 2010 for the purpose of reviewing the positions of the City and the CPOA in a final effort to reach agreement on the disputed issues. At the impasse meeting various proposals were put forward and the parties were able to reach tentative agreement on the economic aspects of a successor MOU. The terms and conditions of this MOU are being presented for approval by the City Council as part of a separate action. However, the parties continued to be at impasse regarding changes to the retirement benefits for employees hired with the City in the future. Based on the information provided at the impasse hearing, it was the conclusion of the City Manager that the parties had reached a point where continued negotiations concerning future retirement benefits would be futile. The parties agreed to reopen the contract on the issue of retirement benefits, and the City made a last, best and final offer to the CPOA regarding the retirement benefit provisions that are still at issue. These provisions are outlined in Exhibit A. DEPARTMENT CONTACT: Julie Clark 760-602-2440 julie.clark@carlsbadca.gov FOR CITY CLERKS USE ONLY. COUNCIL ACTION: APPROVED DENIED CONTINUED WITHDRAWN AMENDED 3 Dn D CONTINUED TO DATE SPECIFIC CONTINUED TO DATE UNKNOWN RETURNED TO STAFF OTHER -SEE MINUTES D Dnn Page 2 As discussed by the parties, an impasse still exists and both parties agree that any further meetings on the remaining disputed items would be futile. In addition, as discussed by the parties, an impasse hearing with the City Council will not be required and both parties agree that all of the impasse procedure requirements outlined in the City's Employer-Employee Relations Rules and Regulations have been satisfied. The City has met its obligation to meet and confer in good faith, pursuant to the Meyers-MNias- Brown Act (Government Code Sections 3500 et. seq.). Consequently, as the City Council possesses the authority to resolve the impasse in negotiations pursuant to the Meyers-Milias- Brown Act and Section IV of the City's Employer-Employee Relations Rules and Regulations, the City Council may choose to adopt and implement Exhibit A, which outlines the retirement benefit provisions that are still at issue and reflect the City's last, best and final offer in these areas. The contract provisions that are still in dispute between the parties are as follows: • RETIREMENT BENEFITS: A. Implement a two-tiered retirement plan that will apply to all sworn members hired on or after October 4, 2010. The terms of the second tier shall include the following: 1. The 2% @ 50 retirement formula 2. The use of a 3-year Final Average Earnings (FAE) formula for final compensation calculation B. Put forth a Charter amendment for the November 2010 ballot prohibiting increases in the 2% @ 50 retirement formula absent approval of the electorate. Should the City Council decide to adopt and implement the retirement benefit terms and conditions for employees represented by the CPOA as outlined above, this would necessitate directing staff to amend the contract with CalPERS to create a 2nd tier retirement plan for police safety employees at the 2% @ 50 retirement formula effective on or before October 4, 2010. FISCAL IMPACT: There is no immediate fiscal impact associated with implementing the changes to the retirement provisions as described above. It is estimated that the City will realize long-term savings ranging from $1,000,000 to $1,400,000 over the next ten years as a result of this action, but employee turnover and other factors will influence the extent of this projected savings. ENVIRONMENTAL IMPACT: This amendment is statutorily exempt from CEQA pursuant to Public Resources Code Section 21080(b)(1). Page 3 EXHIBITS: 1. Resolution No. 2010-141 resolving the impasse and adopting and implementing certain benefit terms and conditions for employees represented by the Carlsbad Police Officers' Association. 2. Exhibit A - City's Last, Best and Final offer to the Carlsbad Police Officers' Association: Retirement benefit provisions for future employees 1 RESOLUTION NO. 2010-141 2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, RESOLVING THE IMPASSE 3 AND ADOPTING AND IMPLEMENTING CERTAIN 4 BENEFIT TERMS AND CONDITIONS FOR EMPLOYEES REPRESENTED BY THE CARLSBAD POLICE OFFICERS' 5 ASSOCIATION 6 WHEREAS, the Carlsbad Police Officers' Association (CPOA) is the exclusively 7 recognized employee organization representing police employees under the City's o Employer-Employee Relations Rules and Regulations; and 9 WHEREAS, the City and the CPOA have previously entered into a Memorandum 10 of Understanding which took effect on January 1, 2008, and expired on December 31, 11 2009; and 12 WHEREAS, the City and the CPOA began meeting and conferring on November 14 12, 2009 in an effort to reach agreement on a Memorandum of Understanding and held 15 several meetings over the last six months, supplemented by additional proposals that 16 were exchanged electronically; and 17 WHEREAS, the City initiated the impasse procedure by filing a written request for 18 an impasse meeting together with a statement of its position on all disputed issues in 19 .- *• ^negotiations; and 20 WHEREAS, the City's written request for an impasse meeting was sent to both 21 the CPOA and the City Manager on April 27, 2010; and 22 WHEREAS, this impasse meeting was held on May 4, 2010 for the purpose of j-t~J _. reviewing the position of the City and the CPOA in a final effort to reach agreement on all 25 disputed issues; and 26 27 28 1 WHEREAS, the parties have reached tentative agreement on the economic 2 aspects of a successor MOU, the terms and conditions which will be presented for approval by the City Council as part of a separate action; and 4 WHEREAS, the City and the CPOA were unable to reach agreement on 5 changing retirement benefits for employees hired with the City in the future; and 6 WHEREAS, the parties agreed to reopen the contract on the issue of retirement 7 benefits for future employees; and o 9 WHEREAS, it was determined by the parties that a reopener meeting on the 10 remaining disputed items was unnecessary; and 11 WHEREAS, as agreed to by the parties, an impasse still exists on the remaining 12 disputed items and any further meetings on the disputed items would be futile; and 13 WHEREAS, as agreed to by the parties, an impasse hearing with the City 14 Council will not be required and all of the impasse procedure requirements outlined in the City's Employer-Employee Relations Rules and Regulations have been satisfied; and 16 WHEREAS, as a result of said negotiations and impasse procedures, the City 17 has made a last, best and final offer to the CPOA regarding the retirement benefit 18 provisions that are still at issue; and 20 WHEREAS, as of May 19, 2010, the CPOA has rejected said final offer; and 21 WHEREAS, it is therefore apparent that the City and the CPOA have reached an 22 impasse in their negotiations regarding the retirement benefits of future employees for a 23 term which includes January 1, 2010 through December 31, 2012; and 24 WHEREAS, the City Council believes it is in the best interest of the City to 25 impose the retirement benefit provisions that are still at issue and that constitute the City's 26 last, best and final offer in these areas; and 27 28 1 2 3 et. seq.) and Section IV of the City's Employer-Employee Relations Rules and 4 Regulations. 5 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of 6 Carlsbad, California, as follows: 7 1. That the above recitations are true and correct.8 9 10 WHEREAS, the City Council possesses the power to resolve the impasse in negotiations pursuant to the Meyers-Milias-Brown Act (Government Code Sections 3500 2. That an impasse in negotiations regarding the retirement benefits of future employees exists between the City and the CPOA. 3. That the City Council determines that the impasse in negotiations between 12 the City and the CPOA shall be resolved by adopting and implementing the retirement 13 benefit provisions that constitute the City's last, best and final offer in these areas as set 14 forth in Exhibit A, attached hereto and incorporated by reference herein. 15 That the City Council directs staff to amend the City's contract with the // 16 17 18 19 20 21 22 23 II 24 II 25 26 " 27 " 28 California Public Employees' Retirement System (CalPERS) to create a 2nd tier retirement plan for police employees at the 2% @ 50 retirement formula effective October 4, 2010. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 8th day of June, 2010, by the following vote to wit: AYES: Council Members Lewis, Kulchin, Hall, Packard, Blackburn NOES: None ABSENT: None ATTEST: yu^?\ ^^7\ '^yjtyi-t^ f L^RRAl^E M. *A/OjOD, City Clerk Q .'t- A IMPOSED CHANGES INCORPORATED INTO THE MEMORANDUM OF THE CITY OF CARLSBAD AND THE CARLSBAD POLICE OFFICERS' ASSOCIATION This document incorporates changes imposed by City Council action at a Special Meeting on May 25, 2010 into the Memorandum of Understanding between the City of Carlsbad and the Carlsbad Police Officers' Association. The section outlined below was changed as a result of the City Council's action: ARTICLE 24. RETIREMENT BENEFITS The^revisedsection, js. ..niarked_withan.as|erisli(*ijnitsjitleui.t|i.is..docunient. AHother .section s_from_the current MOU (January 1, 2010 through December 3 1, 2012) between the City of Carlsbad and the Carlsbad Police Officers' Association shall remain in full force and effect through December 31. 2012. ARTICLE 24. RETIREMENT BENEFITS* 24.1 The City agrees to continue to pay the employer's contribution rate required by the California Public Employees' Retirement System (CalPERS) to maintain the negotiated level of benefits for employees covered by this Memorandum. 24.2 The City will contract with CalPERS to provide the "3% @ 50" retirement benefit for all sworn CPOA-represented safety employees effective the pay period inclusive of June 30, 2001. This retirement benefit will be provided to all sworn CPOA-reprcsented safety employees entering membership for the first time in a City of CarJsJ3adj)pJjcej;aJ^^2010. " ~~ " ~~ ~ 24. 3 Effective the pay period inclusive of July 1, 2001, the City will pay on behalf of all sworn CPOA- represented safety employees eight percent (8%) of the employee's retirement contribution to CalPERS. The remaining one percent (1%) employee contribution will be deducted from each employee's salary on a pre-tax basis by implementing provisions of Section 414(h)(2) of the Internal Revenue Code (IRC). Effective the pay period inclusive of July 1, 2010, the City will pay on behalf of all sworn CPOA- represented safety employees four percent (4%) of the employee's retirement contribution to CalPERS. The remaining five percent (5%) employee contribution will be deducted from each employee's salary on a pre-tax basis by implementing provisions of Section 414(h)(2) of the Internal Revenue Code (IRC). Effective the pay period inclusive of July 1, 2011, the City will pay on behalf of all sworn CPOA- represented safety employees zero percent (0%) of the employee's retirement contribution to CalPERS. The remaining nine percent (9%) employee contribution will be deducted from each employee's salary on a pre-tax basis by implementing provisions of Section 414(h)(2) of the Internal Revenue Code (IRC). 24.4 The City will contract with CalPERS to provide the "3% @ 60" retirement benefit for all miscellaneous represented employees effective the pay period inclusive of January 1, 2005. 24.5 The City will pay seven percent (7%) and the miscellaneous employee will pay the additional one percent (1%) of the miscellaneous employee's retirement contribution to CalPERS. The remaining one percent (1%) employee contribution will be deducted from each employee's salary on a pre-tax basis by implementing provisions of Section 414(h)(2) of the Internal Revenue Code (IRC). Effective the pay period inclusive of July 1, 2010, the City will pay on behalf of all miscellaneous represented employees three and one-half percent (3.5%) of the employee's retirement contribution to CalPERS. The remaining four and one-half percent (4.5%) employee contribution will be deducted from each employee's salary on a pre-tax basis by implementing provisions of Section 414(h)(2) of the Internal Revenue Code (IRC). Effective the pay period inclusive of July 1, 2011, the City will pay on behalf of all miscellaneous represented employees zero percent (0%) of the employee's retirement contribution to CalPERS. The remaining eight percent (8%) employee contribution will be deducted from each employee's salary on a pre-tax basis by implementing provisions of Section 414(h)(2) of the Internal Revenue Code (IRC). 24.6 The City shall report the value of Employer Paid Member Contributions (EPMC) as additional compensation to CalPERS for all CPOA represented employees. 34v7 The parties agree to immediately reopen negotiations to discuss creating a two tier retirement plan and an amendment to the Grty Charter-feqtiHWg-voter approval of any future-Increases in the 2- tier retirement formula for all CPQA represented sworn members. 24.78 The parties will reopen negotiations during the term of this MOU upon the request of the City to discuss creating a two-tier retirement plan and a Charter amendment regarding the retirement formula for all CPOA represented miscellaneous members. 24.8 A two-tier retirement plan will apply to all sworn members entering membership for the first time in a City of Carlsbad police shall include the following: in a City of Carlsbad police safety classification on or after October 4, 2010. TJie_terrns_ojF theJ2^_tier a. 2% f) 50 formula b. ............. 3:yejr JMnaL Ayerjge _Hjrnmgs^^ The City shall lake the necessary steps to propose to the electorate an amendment to the Charter ofllM..Oty_M.CarJ[sbajdin the^ prohibit ..si.fety.,.empjoyees entering membership for the first time in a City of Carlsbad police safety classification on or after October 4. 2010 from having their retirement benefit formula (commonly known as the 2% @ 50 years of age formula) increased without the approval of the electorate. The City Council may reduce this formula as provided in state law without such an amendment.