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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 D D D CONTINUED TO DATE SPECIFIC CONTINUED TO DATE UNKNOWN RETURNED TO STAFF OTHER - SEE MINUTES D D D D Page 2 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 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, 2010, and will expire on December 31, 11 2012; and 12 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 21 disputed items; and 22 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 26 27 28 1 2 3 provisions that are still at issue; and 4 WHEREAS, as of June 16, 2011, the CPOA has rejected said final offer; and 5 WHEREAS, it is therefore apparent that the City and the CPOA have reached an 6 impasse in their negotiations regarding the retirement benefits of future employees for a 7 term which includes January 1, 2010 through December 31, 2012; and 8 9 10 11 12 19 20 21 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 13 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 14 15 Regulations. 16 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of 17 Carlsbad, California, as follows: 18 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 24 benefit provisions that constitute the City's last, best and final offer in these areas as set 25 forth in Exhibit A, attached hereto and incorporated by reference herein. 26 27 28 20 21 22 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. 1 2. /"v<-kli-T«"ir-r-ti'-t D i i V\ I! ^ C r-v* r\ lj-»» i^-v^^r* ' D s^t'i rs^ t-v\y-^ »-»•*• Oi *r-»4-*-vf^-i /O^IDCDOX +--» ^»-^^4-^ «-k O^Q 3 4 5 6 7 8 9 10 11 12 13 // 14 // 15 // 16 // 17 ir " 19 " II II 23 „ 24 // 25 II 26 II 27 28 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: 3 .. AYES: Council Members Hall, Kulchin, Blackburn, Douglas, Packard. 4" 5 NOES: None. 6 ABSENT: None. s" 9 10 11 MATT'HALL, Mayor 12 ATTEST: 13 14 15 LORRAINE M. WOOD, City Clerk 16 (SEAL) 17 18 19 20 21 22 23 24 25 26 27 28 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.