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CITY COUNCIL AGENDA ITEM NO. 6
Meeting Date: June 10, 2003
Subject/Title: Amendments to the Memorandum of Understanding between the City and the Brentwood Police Officers’ Association (BPOA) for Fiscal Years 2003/04 through 2007/08
Submitted by: John Stevenson, City Manager
Approved by: John Stevenson, City Manager
The City Council adopted Resolution No. 2618 at the regular Council meeting held on July 23, 2002, approving the amended list of survey cities to include: Antioch, Benicia, Livermore, Manteca, Pittsburg, Pleasant Hill, Pleasanton, Tracy and Vacaville. Contra Costa County is on the survey list as a major area employer. Additional employers for specific job classifications include: Contra Costa Water District (water only), Dublin San Ramon Services District and Iron House Sanitary District (wastewater only), and BFI and Waste Management (solid waste only).
1. A 5-year contract commencing July 1, 2003 and ending June 30, 2008.
2. Reduce the current council pay policy from 10% above the mean to the 85th percentile of the survey agencies. This change reduces the pay policy by about 2.5%. A final survey will be conducted when survey agencies finalize their July 1, 2003 cost of living adjustments to determine pay adjustments for the fiscal year 2003/04.
a. The City of Brentwood agrees to meet with the recognized employee bargaining units and groups for the purpose of discussing additions to or deletions from the existing survey city list when the city’s population reaches 50,000 or as part of negotiations for a successor contract.
3. Effective July 1, 2003, the city agrees to pay the health insurance contribution at a rate of $611.41 per month. This amount is comprised of the full family Kaiser rate ($547.53) from 2002 plus 50% of the increase to full family Kaiser rate effective January 2003 ($675.30). Over the course of the subsequent years covered by the agreements, the city will gradually adjust the city’s health insurance contribution to cover the cost of the Kaiser employee, plus one dependent. All future increases in full family Kaiser will be split 70% employer - 30% employee, with the employee until the Kaiser employee plus one level is reached. Employer premium contributions for the Police Lieutenants will be equal to the amount provided to members of the Brentwood Police Officers’ Association over the length of this agreement.
4. Effective July 1, 2003, or as soon thereafter as allowed by CalPERS, the non-sworn employee retirement package will be modified to 2.7% @ 55, and include a cap of 5% maximum annually on the COLA during retirement for all bargaining unit employees.
5. The City will request an actuarial valuation to be conducted by CalPERS, of the employer paid member contribution as pay (EPMC) via reopener at the end of year two (2) of the contract for sworn members of the city. The Council will re-evaluate this proposed benefit at that time for inclusion in the remaining three (3) years of the contract.
6. Provide an annual cost of living adjustment based on the 85th percentile survey, beginning July 1, 2004, with a maximum of 5% and a minimum of 0%, and a reopener if CPI exceeds 5% in any one year, or is less than 0%.
a. Reopen negotiations if city issued building permits fall below 550 to evaluate the effect of this condition.
b. Reopen negotiations if Congress declares war or the President engages the U.S. military or otherwise declares a national emergency or state of war to evaluate the effect or significant potential effect of this condition on the city budget.
c. Reopen negotiations if, in any calendar year (January 1 to December 31) of the term of the agreement, the City of Brentwood budget is subject to revenue reductions by the State of California equal to 10% of the standardized general fund revenues, the COLA will be implemented in two phases, 50% at July 1 and 50% at January 1 of that particular fiscal year. The standardized general fund is defined as all general fund revenues except those revenues provided by engineering and community development fees.
d. Reopen negotiations if, in any year of the term of the agreement, the City of Brentwood budget is subject to revenue reductions by the State of California greater than 10% of the standardized general fund revenues, the city and employees agree to reopen negotiations the subject of which will be a determination of whether the city can implement the COLA for that particular year. The standardized general fund is defined as all general fund revenues except those revenues provided by engineering and community development fees.
7. Effective July 1, 2003, the standard workday for most non-sworn employees will be 8 hours per day. This section supersedes all other MOU documents with regard to the length of the workday and calculation of overtime in excess of the work day. Current City Hall hours are 8:30 a.m. to 5:00 p.m. The 8-hour schedule is intended to be flexible in nature with the approval of the Department Director and consistent with wage and hour legal requirements, with the employees having the option of starting before 8:30 a.m., working after 5:00 p.m., taking a half-hour non-paid, duty-free lunch break, any combination of the above or other option. Any current employees employed as of July 1, 2003 may elect to maintain their current 7.5-hour day schedule, however, doing so shall result in a reduction in the pay schedule. Electing to maintain their current 7.5-hour day shall result in a reduction in the standard pay schedule by 6.25%. If that 6.25% reduction in pay schedule results in an annual increase in pay less than 2/3 of the annual cost of living increase, then the initial salary for that employee shall be an increase in pay amounting to 2/3 of the annual cost of living increase. Subsequent annual COLA increases shall be limited to 2/3 of the annual cost of living increase until the individual employees’ salary equals 6.25% less than the standard salary. For example, if an employee who wishes to remain on a 7.5 hour day is proposed to receive a 5.5% salary adjustment July 1, 2003, and the annual COLA is 3%, the employee will receive a minimum 2% COLA. Once an employee works an 8-hour day, the 7.5 hour option is no longer available unless or until approved by the Department Director and then only with an immediate 6.25% reduction in pay. There is no time limit restricting the length of time an employee may elect to remain on the 7.5 hour day, however, once on the 8-hour day, any option to work a 7.5 hour day is at the discretion of the Department Director.
8. Amend the Health Care Reimbursement Account portion of the flexible benefits plan, effective January 1, 2004 plan year, to allow employees to participate at higher benefit levels as follows: 1 year of service equals $1,000 cap, 2 years of service equals $2,000 cap, 3 years of service equals $3,000 cap, 4 years of service equals $4,000 cap, and 5+ years of service equals $5,000 cap. This is an employee-funded program with virtually no impact on the City.
This 5-year agreement retains Brentwood’s pay and benefit package at a very competitive level while tightening down both slightly to secure long-term savings. Staff recommends that the council adopt the 2.7% @ 55 package with retirement pension COLA restricted to an annual maximum of 5%, a salary pay standard of the 85th percentile, gradually reduce health insurance contribution over the life of this agreement to the employee plus one level, and a police retirement amendment for retirement pension COLA to a maximum of 5%, and direct the Finance Director to pay the unfunded retirement package liability in a lump sum.
The CalPERS contract amendment to provide a cap of 5% maximum annually on the COLA during retirement for sworn employees will be brought before the City Council as soon as CalPERS documentation is available.
All of the above revisions have been incorporated into the proposed 2003/04, 2004/05 Budget documents that are being presented to the City Council for adoption at this same meeting. Please note that the proposed budget document excludes the Vehicle License Fee and POST reimbursement revenues in order to make sure our projections are conservative.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BRENTWOOD RATIFYING THE AMENDMENTS TO THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY AND BRENTWOOD POLICE OFFICERS’ ASSOCIATION (BPOA) FOR FISCAL YEARS 2003-2008.
WHEREAS, The Brentwood Police Officer’s Association met with the City Manager and staff and conferred in good faith regarding wages, hours and other terms and conditions of employment, and
WHEREAS, the Memorandum of Understanding is entered into pursuant to the Meyers-Milias-Brown Act (California Government Code Sections 3500-3510) and has been jointly prepared by the aforementioned entities, and
WHEREAS, the City Council directs the finance director to pay the unfunded liability in a lump sum through the contract amendment process with CalPERS.
NOW, THEREFORE BE IT RESOLVED
that the City Council of the City of Brentwood hereby adopts a resolution
and approves the 2003-2008 Memorandum of Understanding with the aforementioned
Employee Association for fiscal years beginning 2003/2004 – 2007/2008
and authorizes the terms and conditions therein to be implemented effective
July 1, 2003.
City of Brentwood City Council
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Brentwood, CA 94513
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