HomeMy WebLinkAbout2011-08-23; City Council; 20652; IMPASSE LABOR NEGOTIATIONS CPOACITY OF CARLSBAD - AGENDA BILL
AB# 20.652
MTG. 08/23/11
DEPT. HR
IMPASSE IN LABOR NEGOTIATIONS
BETWEEN THE CITY AND THE
CARLSBAD POLICE OFFICERS
ASSOCIATION (CPOA)
DEPT. HEAD
CITY ATnr>^g^
CITYMGR. ' UJL-X--lA'
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.2011-196'resolving the impasse on the remaining disputed items and
adopting and implementing certain benefit terms and conditions for miscellaneous
employees represented by the CPOA.
ITEM EXPLANATION:
The City and the Carlsbad Police Officers' Association (CPOA) representatives have been
meeting and conferring since May 19, 2011 on a reopener clause in the Memorandum of
Understanding (MOD), with discussions focused on the retirement benefits for non-sworn
employees covered by the miscellaneous retirement plan under the California Public
Retirement System (CalPERS). The parties held several meetings supplemented by additional
proposals that were exchanged telephonically. As the parties failed to reach agreement and
exhausted all possibilities of settlement, CPOA initiated the impasse procedure on June 16,
2011 pursuant to Section IV of the City's Employer-Employee Relations Rules and Regulations.
Both parties are in agreement that continued negotiations concerning future retirement benefits
for non-sworn employees of the CPOA would be futile. 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. 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-Milias-
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.
DEPARTMENT CONTACT: Julie Clark 760-602-2440 julie.clark@carlsbadca.gov
FOR CITY CLERKS USE ONLY.
COUNCIL ACTION: APPROVED
DENIED
CONTINUED
WITHDRAWN
AMENDED
YB
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CONTINUED TO DATE SPECIFIC
CONTINUED TO DATE UNKNOWN
RETURNED TO STAFF
OTHER - SEE MINUTES
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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 miscellaneous
members hired on or after November 27, 2011. The terms of the second tier
shall include the following:
1. The 2% @ 60 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 2012 ballot prohibiting
increases in the 2% @ 60 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
miscellaneous employees at the 2% @ 60 retirement formula effective on or before November
27,2011.
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 of
approximately $320,000 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:
The proposed action does not qualify as a "project" under the California Environmental Quality
Act (CEQA) per State CEQA Guidelines Section 15378 as it does not result in a direct or
reasonably foreseeable indirect physical change in the environment.
EXHIBITS:
1. Resolution No. 2011-196 resolving the impasse on the remaining disputed items
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. 2011-196
2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, RESOLVING THE IMPASSE
3 ON THE REMAINING DISPUTED ITEMS AND ADOPTING
4 AND IMPLEMENTING CERTAIN BENEFIT TERMS AND
CONDITIONS FOR EMPLOYEES REPRESENTED BY THE
5 CARLSBAD POLICE OFFICERS' ASSOCIATION
6 WHEREAS, the Carlsbad Police Officers' Association (CPOA) is the exclusively
7 recognized employee organization representing police employees under the City's
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Employer-Employee Relations Rules and Regulations; and
9 WHEREAS, the City and the CPOA have previously entered into a Memorandum
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of Understanding which took effect on January 1, 2010, and will expire on December 31,
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2012; and
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WHEREAS, the City and the CPOA began meeting and conferring on May 19,
14 2011 pursuant to a reopener clause within the current Memorandum of Understanding
15 regarding the retirement benefits for non-sworn employees covered by the miscellaneous
16 retirement plan under the California Public Retirement System (CalPERS); and
WHEREAS, after a series of meetings supplemented by telephonic proposals,
the parties are in agreement that continued negotiations concerning future retirement
19 benefits for non-sworn employees of the CPOA would be futile; and
20 WHEREAS, as agreed to by the parties, an impasse still exists on the remaining
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disputed items; and
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WHEREAS, as agreed to by the parties, an impasse hearing with the City
Council will not be required and all of the impasse procedure requirements outlined in the
25 City's Employer-Employee Relations Rules and Regulations have been satisfied; and
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3 provisions that are still at issue; and
4 WHEREAS, as of June 16, 2011, the CPOA has rejected said final offer; and
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WHEREAS, it is therefore apparent that the City and the CPOA have reached an
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impasse in their negotiations regarding the retirement benefits of future employees for a
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term which includes January 1, 2010 through December 31, 2012; and
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WHEREAS, as a result of said negotiations and impasse procedures, the City
has made a last, best and final offer to the CPOA regarding the retirement benefit
WHEREAS, the City Council believes it is in the best interest of the City to
impose the retirement benefit provisions that are still at issue and that constitute the City's
last, best and final offer in these areas; and
WHEREAS, the City Council possesses the power to resolve the impasse in
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et. seq.) and Section IV of the City's Employer-Employee Relations Rules and
negotiations pursuant to the Meyers-Milias-Brown Act (Government Code Sections 3500
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15 Regulations.
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NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
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Carlsbad, California, as follows:
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1. That the above recitations are true and correct.
2. That an impasse in negotiations regarding the retirement benefits of future
miscellaneous employees exists between the City and the CPOA.
22 3. That the City Council determines that the impasse in negotiations between
23 the City and the CPOA shall be resolved by adopting and implementing the retirement
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benefit provisions that constitute the City's last, best and final offer in these areas as set
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forth in Exhibit A, attached hereto and incorporated by reference herein.
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4. That the City Council directs staff to amend the City's contract with the
California Public Employees' Retirement System (CalPERS) to create a 2nd tier retirement
plan for police miscellaneous employees at the 2% @ 60 retirement formula effective
November 27, 2011.
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1 PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council
2 of the City of Carlsbad on the 23rd day of August 2011, by the following vote to wit:
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AYES: Council Members Hall, Kulchin, Blackburn, Douglas, Packard.
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5 NOES: None.
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ABSENT: None.
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11 MATT'HALL, Mayor
12 ATTEST:
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LORRAINE M. WOOD, City Clerk
16 (SEAL)
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EXHIBIT A
IMPOSED CHANGES INCORPORATED INTO THE MEMORANDUM OF
UNDERSTANDING ("MOU") BETWEEN THE CITY OF CARLSBAD AND
THE CARLSBAD POLICE OFFICERS' ASSOCIATION
This document incorporates changes imposed by City Council action on August 23, 2011 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 revised section is marked with an asterisk (*) in its title in this document. All other sections
from the current MOU (January 1, 2010 through December 31, 2012) between the City of
Carlsbad and the Carlsbad Police Officers' Association shall remain in full force and effect
through December 31, 2012.
SUMMARY OF IMPOSED CHANGES INCORPORATED INTO THE MOU BETWEEN THE
CITY OF CARLSBAD AND THE CARLSBAD POLICE OFFICERS' ASSOCIATION
EFFECTIVE AUGUST 23, 2011.
ARTICLE 24. RETIREMENT BENEFITS
A. A two-tier retirement plan will apply to all miscellaneous members hired on or
after November 27,2011. The terms of the second tier shall include the
following:
1. 2% @ 60 formula
2. 3-year Final Average Earnings (FAE) for final compensation
calculation
B. During the November 2012 election the City will put a charter
amendment on the ballot prohibiting increases in the 2% @ 60
retirement formula absent approval of the electorate
AMENDED ARTICLE 24
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-represented safety
employees entering membership for the first time in a City of Carlsbad police safety
classification before October 4, 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.
34r7—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.
24.7S A two-tier retirement plan will apply to all sworn members entering membership for the
first time in a City of Carlsbad police safety classification on or after October 4, 2010.
The terms of the 2nd tier shall include the following:
a. 2% @ 50 formula
b. 3-year Final Average Earnings (FAE) for final compensation
calculation
A two-tier retirement plan will apply to all miscellaneous members entering membership
for the first time in a City of Carlsbad police miscellaneous classification on or after
November 27, 2011 or as soon as administratively possible thereafter. The terms of the
2nd tier shall include the following:
a. 2% @, 60 formula
b. 3-year Final Average Earnings (FAE) for final compensation
calculation
24.8 The City shall take the necessary steps to propose to the electorate an amendment to the
Charter of the City of Carlsbad in the November 2010 election which would prohibit
safety employees 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.
The City shall take the necessary steps to propose to the electorate an amendment to the
Charter of the City of Carlsbad in the November 2012 election or at the next special
election (whichever occurs first) which would prohibit miscellaneous employees entering
membership for the first time in a City of Carlsbad police miscellaneous classification on
or after November 27, 2011 from having their retirement benefit formula (commonly
known as the 2% (a), 60 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.