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HomeMy WebLinkAboutAgenda Report - June 15, 2011 I-02AGENDA ITEM 'P* rlll •. CITY OF LODI COUNCIL COMMUNICATION TM AGENDA TITLE: Consider Budget Year 2011/12 Concession Proposal from Lodi Police Officers Association MEETING DATE: June 15,2011 PREPARED BY: City Attorney RECOMMENDED ACTION: Consider Budget Year 2011/12 Concession Proposal from Lodi Police Officers Association. BACKGROUND INFORMATION: Staff has received the following concession proposal from the Lodi Police Officers Association. For the reasons discussed below staff regretfully recommends that Council reject the Police Officers Associations proposal. Group Concession Comments No furloughs Lodi Police 3% PERS Officers waive all but $59,100 of holiday cash Although not a negotiated out concession, includes value of eliminating two funded position waive comp time cash out Does not address POAL's Notice of waive 3% deferred comp match Claim and leaves open substantial unbudgeted litigation costs offset above concessions with any savings achieved by "super lowest cost Super lowest cost medical would be medical." achieved by POAL memberswho are currently on higher cost plans taking the POW C plan and allowing non -sworn to join P 0 W C as associate members and securing the cheaper P 0 W C plan. Savings will only be credited as they are achieved. The Police Officers Association ("POA") proposal leaves open the question Notice of Claim and its potential impact on the validity of the 2007 MOU, the 2010 Addendum, and the Side Letters of February 2009, June 2009, and June 2010. Unfortunately, Staff has not been able to discuss the Notice of Claim with the POA because the POA is represented by counsel who has elected to not attend the meetings. As Council knows, the POA contends that a business relationship between the negotiators voids the side letters. If the POA's contention is correct, the 2007 MOU and the 2010 Addendum would also necessarily be void because they were signed by the same parties. Among other things those agreements gave the POA a 20 percent raise, changed from a performance incentive bonus structure to a longevity pay structure, and significantly increased APPROVED: Bartlam, City Manager significantly increased medical insurance opt out payments (going from $25.00 per month to as much as $650.00 per month). The 2010 Addendum provided various other benefits including an increase in the amount of tuition reimbursement up to $3,000, that could be unwound. Although the City's cross claim far exceeds any claim the POA may ultimately pursue, the cost of litigating the claim is not in the City's 2011/12 budget. Accordingly staff can not recommend approval of the proposal without resolution of the Notice of Claim. FISCAL IMPACT: FY 2011/12 Estimated savings of $500,000 in eliminated funded positions (four police officers). Unknown litigation costs. FUNDING: Not applicable. a �� AGENDA ITEM logrz CITY OF LODI COUNCIL COMMUNICATION Im AGENDA TITLE: Consider Budget Year 2011/12 Concession Proposal from Lodi Police Officers Association MEETING DATE: June 15,2011 PREPARED BY: City Attorney RECOMMENDEDACTION: Consider Budget Year 2011/12 concession proposal from Lodi Police Officers Association. BACKGROUND INFORMATION: Subsequent to the initial Council Communication staff and the Lodi Police Officers Association ("POAL") reached a tentative agreement. The tentative agreement now requires approval by the Council and the POAL membership. The tentative agreement resolves both parties' claims arising out of the May 11, 2011 POAL Notice of Claim; extends the POAL's MOU three months to and including December 31, 2011; and includes the same concessions outlined in the original Council Communication with two minor modifications (allowing excess savings to be cashed out in the form of CTO in addition to holiday and allowing vacation cash out for members who do not have CTO or holiday time). Group Concession Comments No furloughs Lodi Police 3% PERS Officers waive all but $59,100 of holiday cash Although not a negotiated out. Allow members to cash out their concession, includes value of pro rata portion of the $59,100 in form eliminating two funded position of holiday CTO or vacation. Super lowest cost medical would be waive comp time cash out achieved by POAL members who are currently on higher cost plans waive 3% deferred comp match taking the PORAC plan and allowing non -sworn to join PORAC as offset above concessions with any associate members and securing savings achieved by "super lowest cost the cheaper PORAC plan. Savings medical." will only be credited as they are achieved. The tentative agreement includes a Settlement Agreement that resolves the Notice of Claim and its potential impact on the validity of the 2007 MOU, the 2010 Addendum, and the Side Letters of February 2009, June 2009, and June 2010. As Council knows, the POA contended that a business relationship between the negotiators voided the side letters. If the POA's contention were correct, the 2007 MOU and the 2010 Addendum would also necessarily be void because they were signed by the same parties. Among other things those agreements gave the POA a 20 percent raise, changed from a performance incentive bonus structure to a longevity pay structure, and significantly increased medical insurance opt out payments (going APPROVED: KonradtBartlam, City Manager from $25 per month to as much as $650 per month). The 2010 Addendum provided various other benefits including an increase in the amount of tuition reimbursement up to $3,000 that could be unwound. This Settlement Agreement resolves both the POAL's claims and the City's claims set forth above. The tentative agreement also includes an Addendum extending the POAL's MOU an additional three months to and including December 31, 2011. The new expiration date will give the parties the time necessary to successfully negotiate a new contract, and in light of the concessions, continue to provide the budget certainty necessary to adopt the Council's budget. Staff also requests authority to administratively revise the 2011/12 Financial Plan and Budget adopted June 1, 2011 to reflect the concessions approved tonight, and reduce the four position eliminationsto two. Finally, to implement the concessions, CaIPERS requires the City adopt the attached resolution stating the specific percentage the City will contribute towards each employee's employee -paid contribution amount. Since CalPERS recognizes employees through their employee category/bargaining group, the attachments for Police and Dispatchers indicate the specific percentage the City will contribute towards employee -paid retirement by specific category/bargaining group. FISCAL IMPACT: FY 2011/12 estimated savings of $500,000 in combination of concessions and elimination of two positions. FUNDING: Not applicable. D. Step en Schwabljerj City Attorney RESOLUTION NO. 2011- A RESOLUTION OF THE LODI CITY COUNCIL APPROVING THE BUDGET YEAR 2011/12 CONCESSION PROPOSAL FROM THE LODI POLICE OFFICERS ASSOCIATION, AUTHORIZING THE CITY MANAGER TO EXECUTE THE SETTLEMENT AND CONCESSION AGREEMENTS; AND FURTHER AUTHORIZING STAFF TO ADMINISTRATIVELY REVISE THE 2011/12 FINANCIAL PLAN AND BUDGET ADOPTED JUNE 1, 2011 TO IMPLEMENT THE CONCESSION AGREEMENT WHEREAS, the claim filed on May 11, 2011, by the Lodi Police Officers Association (LPDA) has now been resolved; and WHEREAS, subsequent to the initial Council Communication presented to the Council in their June 15, 2011 agenda packet, staff and the Lodi Police Officers Association ("POAL") have reached a Tentative Agreement; and WHEREAS, the Tentative Agreement includes the following: 1) A Settlement Agreement that resolves both parties' (LPDA and City) claims arising out of the Notice of Claim filed on May 11, 2011 by the LPDA, and its potential impact on the validity of the 2007 MOU, the 2010 Addendum, and the Side Letters of February 2009, June 2009, and June 2010 ("Settlement Agreement). 2) An Addendum extending the LPOA's MOU an additional three months to and including December 31, 2011, giving the parties the time necessary to successfully negotiate a new contract; and 3) Includes the same concessions outlined in the original Council Communication with two minor modifications (allowing excess savings to be cashed out in the form of CTO in addition to holiday and allowing vacation cash out for members who do not have CTO or holiday time) — see chart below ("Concession Agreement"). Group Concession Comments No furloughs Lodi 3% PERS Police Officers waive all but $59,100 of holiday cash Although not a negotiated concession, out. Allow members to cash out their pro includes value of eliminating two funded rata portion of the $59,100 in form of positions holiday CTO or vacation. Super lowest cost medical would be waive comp time cash out achieved by POAL members who are currently on higher cost plans taking the waive 3% deferred comp match PORAC plan and allowing non -sworn to join PORAC as associate members and offset above concessions with any securing the cheaper PORAC plan. savings achieved by "super lowest cost Savings will only be credited as they are medical." achieved. WHEREAS, staff also requests authority to administratively revise the 2011/12 Financial Plan and Budget adopted June 1, 2011 to reflect the concessions as outlined above, and reduce the four position eliminations to two positions. NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby approve the Tentative Agreement between the City and LPOA as outlined above; authorizes the City Manager to execute the Settlement Agreement; the Concession Agreement; and make the adjustments to the 2011/12 Financial Plan and Budget necessary to implementthe Concession Agreement. Dated: June 15, 2011 ------------------------------------------------------------------- ------------------------------------------------------------------- hereby certify that Resolution No. 201 /- was passed and adopted by the Lodi City Council in a regular meeting held June 15, 2011, by the following vote: AYES: COUNCIL MEMBERS— NOES: COUNCIL MEMBERS — ABSENT: COUNCIL MEMBERS — ABSTAIN: COUNCIL MEMBERS— RANDIJOHL City Clerk 2011- RESOLUTION NO. 2011- A RESOLUTION OF THE LODI CITY COUNCIL APPROVING EMPLOYER PAID MEMBER CONTRIBUTIONS WHEREAS, the governing body of the City of Lodi has the authority to implement Government Code Section 20691; and WHEREAS, the governing body of the City of Lodi has a written labor policy or agreement which specifically provides for the normal member contributions to be paid by the employer; and WHEREAS, one of the steps in the proceduresto implement Government Code Section 20691 is the adoption by the governing body of the City of Lodi of a resolution to commence said Employer Paid Member Contributions (EPMC); and WHEREAS, the governing body of the City of Lodi has identifiedthe following conditions for the purpose of its election to pay EPMC, and this benefit shall apply to all employees as distinguished below: NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Lodi elects to pay EPMC, as set forth above. BOBJOHNSON Mayor Dated: June 15, 2011 ------------------------------------------------------------------------ ------------------------------------------------------------------------- hereby certify that Resolution No. 2011- was passed and adopted by the City Council of the City of Lodi in a regular meeting held June 15, 2011, by the following vote: AYES: COUNCIL MEMBERS— NOES: COUNCIL MEMBERS— ABSENT: COUNCIL MEMBERS — ABSTAIN: COUNCIL MEMBERS— RANDI JOHL City Clerk 2011- Police Officer Association of Lodi Pay 6% of the normal member contributions as EPMC Effective July 11, 2011 NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Lodi elects to pay EPMC, as set forth above. BOBJOHNSON Mayor Dated: June 15, 2011 ------------------------------------------------------------------------ ------------------------------------------------------------------------- hereby certify that Resolution No. 2011- was passed and adopted by the City Council of the City of Lodi in a regular meeting held June 15, 2011, by the following vote: AYES: COUNCIL MEMBERS— NOES: COUNCIL MEMBERS— ABSENT: COUNCIL MEMBERS — ABSTAIN: COUNCIL MEMBERS— RANDI JOHL City Clerk 2011- RESOLUTION NO. 2011-98 A RESOLUTION OF THE LODI CITY COUNCILAPPROVING THE BUDGET YEAR 2011/12 CONCESSION PROPOSAL FROM THE LODI POLICE OFFICERS ASSOCIATION, AUTHORIZINGTHE CITY MANAGER TO EXECUTE THE SETTLEMENT AND CONCESSION AGREEMENTS; AND FURTHER AUTHORIZING STAFF TO ADMINISTRATIVELY REVISETHE 2011/12 FINANCIAL PLAN AND BUDGETADOPTED JUNE 1, 2011, TO IMPLEMENT THE CONCESSION AGREEMENT WHEREAS, the claim filed on May 11, 2011, by the Lodi Police Officers Association (LPDA) has now been resolved; and WHEREAS, subsequent to the initial Council Communication presented to the Council in its June 15, 2011, agenda packet, staff and the LPOA have reached a Tentative Agreement; and WHEREAS, the Tentative Agreement includes the following: 1) A Settlement Agreement that resolves both parties' (LPDA and City) claims arising out of the Notice of Claim filed on May 11, 2011, by the LPOA, and its potential impact on the validity of the 2007 MOU, the 2010 Addendum, and the Side Letters of February 2009, June 2009, and June 2010 ("Settlement Agreement). 2) An Addendum extending the LPOA's Memorandum of Understanding an additional three months to and including December 31, 2011, giving the parties the time necessary to successfully negotiate a new contract; and 3) Includes the same concessions outlined in the original Council Communication with two minor modifications (allowing excess savings to be cashed out in the form of CTO in addition to holiday and allowing vacation cash out for members who do not have CTO or holiday time) — see chart below ("Concession Agreement"). Group Concession Comments No furloughs Lodi 3% PERS Police Officers waive all but $59,100 of holiday cash Although not a negotiated concession, out. Allow members to cash out their pro includes value of eliminating two funded rata portion of the $59,100 in form of positions holiday CTO or vacation. Super lowest cost medical would be waive comp time cash out achieved by POAL members who are currently on higher cost plans taking the waive 3% deferred comp match PORAC plan and allowing non-swornto join PORAC as associate members and offset above concessions with any securing the cheaper PORAC plan. savings achieved by "super lowest cost Savings will only be credited as they are medical." achieved. WHEREAS, staff also requests authority to administratively revise the 2011/12 Financial Plan and Budget adopted June 1, 2011, to reflect the concessions as outlined above, and reduce the four position eliminations to two positions. NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby approve the Tentative Agreement between the City and LPOA as outlined above; authorizes the City Manager to execute the Settlement Agreement; the Concession Agreement; and make the adjustments to the 2011/12 Financial Plan and Budget necessaryto implementthe Concession Agreement. Dated: June 15, 2011 hereby certify that Resolution No. 2011-98 was passed and adopted by the Lodi City Council in a regular meeting held June 15, 2011, by the following vote: AYES: COUNCIL MEMBERS— Hansen, Katzakian, Mounce, Nakanishi, and Mayor Johnson NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — None ABSTAIN: COUNCIL MEMBERS — None V4N�D�JOHL City Clerk 2011-98 RESOLUTION NO. 2011-99 A RESOLUTION OF THE LODI CITY COUNCIL APPROVING EMPLOYER PAID MEMBER CONTRIBUTIONS WHEREAS, the governing body of the City of Lodi has the authority to implement Government Code Section 20691; and WHEREAS, the governing body of the City of Lodi has a written labor policy or agreement which specifically provides for the normal member contributions to be paid by the employer; and WHEREAS, one of the steps in the procedures to implement Government Code Section 20691 is the adoption by the governing body of the City of Lodi of a resolution to commence said Employer Paid Member Contributions (EPMC); and that the C'Council the City of Lodi elects tc hereby certify that Resolution No. 2011-99 was passed and adopted by the City Council of the City of Lodi in a regular meeting held June 15, 2011, by the following vote: AYES: COUNCIL MEMBERS — Hansen, Katzakian, Mounce, Nakanishi, and Mayor Johnson NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — None ABSTAIN: COUNCIL MEMBERS — Norm RANDIJOHL City Clerk Kliff01611 Police Officer Association of Lodi Pay 6% of the normal member contributionsas EPMC Effective J u ly 11, 2011 that the C'Council the City of Lodi elects tc hereby certify that Resolution No. 2011-99 was passed and adopted by the City Council of the City of Lodi in a regular meeting held June 15, 2011, by the following vote: AYES: COUNCIL MEMBERS — Hansen, Katzakian, Mounce, Nakanishi, and Mayor Johnson NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — None ABSTAIN: COUNCIL MEMBERS — Norm RANDIJOHL City Clerk Kliff01611