TO: CITY COUNCIL
FROM: TARA SCHULTZ, CITY MANAGER
DATE: JUNE 25, 2019
Reviewed by:
City Manager: TS
Finance Director: AP
SUBJECT:
Title
CITY COUNCIL CONSIDERATION OF AUTHORIZING UNILATERAL IMPLEMENTATION OF CHANGES IN WAGES, HOURS AND TERMS AND CONDITIONS OF EMPLOYEES FOR THE CLAREMONT POLICE OFFICERS’ ASSOCIATION
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SUMMARY
The California Meyers-Millias-Brown-Act (MMBA) requires the City to meet and confer in good faith in all matters relating to employment conditions and employer-employee relations, including, but not limited to wages, hours and other terms and conditions of employment with its bargaining groups.
The City has been meeting in good faith with the Claremont Police Officers’ Association (CPOA) since July 2018 for their successor Memorandum of Understanding (MOU). The CPOA declared impasse on or about February 6, 2019 and requested a factfinding hearing on or about March 10, 2019. The City and CPOA participated in the factfinding hearing on May 31, 2019. The factfinder recommendation report was issued on June 11, 2019 and the City made it available to the public on the City’s website on June 18, 2019.
RECOMMENDATION
Recommended Action
Staff recommends that the City Council review the factfinding report and determine whether to unilaterally impose the last, best, and final offer or not.
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ALTERNATIVES TO RECOMMENDATION
In addition to the recommendation, there is the following alternative:
• Request additional information from staff.
FINANCIAL REVIEW
The unilateral implementation of the last, best, and final offer has an estimated cost of $39,308. Of that cost, $28,408 is a one-time payment of $718 per eligible employee that has already been set aside from the 2017-18 General Fund surplus. In addition to the one-time payment, the last, best and final offer included an increase of $200 in equipment reimbursements, with a total additional cost of $8,400, and an increase in bilingual pay for eligible employees of $25 per month, with a total additional cost of $2,500.
The staff cost to complete this report is estimated to be $3,650. These costs are for staff time and are included in the operating budgets of the Administrative Services and Financial Services Departments.
ANALYSIS
The California Meyers-Millias-Brown-Act (MMBA) requires the City to meet and confer in good faith in all matters relating to employment conditions and employer-employee relations, including, but not limited to wages, hours and other terms and conditions of employment with its bargaining groups. The Claremont Police Officers’ Association Memorandum of Understanding expired on June 30, 2018. Pursuant to the MMBA, the City began negotiations with CPOA and all other bargaining groups in early 2018. The City reached agreements with four bargaining groups in July 2018, and one group in November 2018.
The City believes it would be fiscally irresponsible to provide any salary increase to Association members given the City’s projected structural deficits, and inequitable given that the City is committed to parity among and between its employees.
CPOA Negotiations Timeline
The City and CPOA began negotiations for a successor MOU in July of 2018. A total of six bargaining sessions were held. The City issued its last, best, and final offer (LBFO) on February 13, 2019. The CPOA presented its offer to the membership and they overwhelmingly voted not to accept the offer.
Given the history of these negotiations, and the lack of a positive response to the LBFO, it was evident further negotiations would be futile. The CPOA declared impasse on or about February 25, 2019. Subsequently, the CPOA initiated the factfinding process authorized under the MMBA. The City and CPOA participated in a factfinding hearing on May 31, 2019. The factfinder recommendation report was issued on June 11, 2019 and the City made it available to the public on the City’s website on June 18, 2019.
LBFO Summary
Pursuant to Government Code 3505.7, after any applicable factfinding procedures have been exhausted, but not earlier than ten days after the factfinder’s written finding of fact and recommended terms of settlement have been submitted to the parties, a public agency that is not required to proceed to interest arbitration may, after holding a public hearing regarding the impasse, implement its last, best, and final offer, but shall not implement a memorandum of understanding.
The LBFO for CPOA included the following items:
1. SALARIES (Article VI): Besides salary survey implementation that was effective 7/1/2018 (see below), no salary & benefit increases and/or reductions during the term of the agreement.
SALARY SURVEY IMPLEMENTATION: The salary range for the Police Officer classification shall be increased by 3.5%, Police Corporal 4.5%, Jailer 5%, and Parking Enforcement Officer 5%, effective 7/1/2018. (Implemented)
SALARY SURVEY: No salary survey or implementation of any salary survey shall occur prior to January 2020. In 2020, a salary survey shall be completed in January, using a list of survey cities based on the contracts they have in place as of January 1, 2020. All positions that are below market average will be adjusted to the average of said survey beginning July 1, 2020. Once a member has obtained a certain step in the salary range, that member shall remain at that step during any salary range adjustments.
ONE-TIME PAYMENT: During October 2018, the City will finalize the General Fund revenues received during 2017-2018. If the revenues exceed expenditures for the fiscal year, not including appropriations from General Fund reserves, the City will allocate up to 50% of the surplus for a one-time bonus for each unit employee. Each employee shall be eligible for a one-time bonus in an amount to be determined, but not to exceed $1,000 per employee. This one-time bonus shall be announced no later than November 1, 2018 and paid on November 21, 2018. To be eligible for the one-time bonus, employees must be on payroll as of July 2, 2018, and remain on payroll or have retired by November 15, 2018. (COST: $28,408 based on a $718 one-time payment to each eligible employee).
2. Review Revenue: The City Council will consider at a subsequent Council meeting additional revenue options.
3. Bilingual Pay (Article VIII): Increase Bilingual Pay from $75.00 to $100 per month. (COST: $2,500 based on the $25 per month increase in bilingual pay for eligible employees).
4. Upon retirement by a Sworn member, the Sworn member is eligible to purchase at the depreciated fair market value his/her duty weapons. Additionally, anytime the department firearms are replaced at the end of life for those duty weapons, the Sworn member is eligible to purchase that retired duty weapon at the depreciated fair market value.
5. Increase Equipment Reimbursement to $600 and expand scope of Reimbursement to include ammunition, specialized training classes, approved duty weapon (1-time during an 8-year period), and weapon equipment. (COST: $8,400 based on an increase of $200 per year for eligible employees).
6. Increase the number of authorized holidays from 9 to 10 days to include the day after Thanksgiving. (Cost: Unknown)
RELATIONSHIP TO CITY PLANNING DOCUMENTS
Staff has evaluated the agenda item in relationship to the City’s strategic and visioning documents and finds the following:
Council Priorities - This item does not address Council Priorities.
Sustainability Plan - This item does not address any of the goals of Sustainability Plan.
Economic Sustainability Plan - This item does not relate to the Economic Sustainability Plan.
General Plan - This item does not relate to Measures in the General Plan.
2018-19 Budget - This item meets the following Administrative Services Department Work Plan Goals:
AS-3: Attract, train, and retain quality employees for the City organization; and
AS-6: Provide administrative personnel support to employees, operating departments and the City Manager’s Office.
Youth and Family Master Plan - This item does not relate to the Youth and Family Master Plan.
CEQA REVIEW
The possible unilateral implementation of the wages, hours, and terms and conditions for employees in the Claremont Police Officers’ Association is not subject to environmental review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15060(c)(2) (the activity will not result in a direct of reasonably foreseeable indirect physical change in the environment), and Section 15060(c)(3) (the activity is not a “project” as defined in Section 15378). CEQA guidelines Section 15378 (b)(2), (4) and (5) excludes continuing administrative activities (including personnel related actions), government fiscal activities, and organizational and administrative activities of governments that will not result in a direct or indirect physical change in the environment are not CEQA projects from its definition of “project.”
Even if the unilateral implementation of the wages, hours, and terms and conditions for employees in the Claremont Police Officers’ Association were determined to be a CEQZ project, it would be exempt from environmental review under CEQA Guidelines 15061(B)(3)’s “general rules” that CEQA applies only projects that have the potential for causing a significant effect on the environment.
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process. Copies are available at the City Hall public counter, the Youth Activity Center, the Alexander Hughes Community Center, and the City website.
Submitted by: Prepared by:
Tara Schultz Christopher M. Paulson
City Manager Interim Assistant City Manager
Attachment:
Resolution