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HomeMy WebLinkAbout09727ORDINANCE NO. 9727 AN ORDINANCE AMENDING AND EXTENDING THE TERM OF THE COLLECTIVE BARGAINING AGREEMENT BETWEEN THE CITY OF PUEBLO AND THE INTERNATIONAL BROTHERHOOD OF POLICE OFFICERS LOCAL 537 FOR A ONE-YEAR PERIOD COMMENCING JANUARY 1, 2021 THROUGH DECEMBER 31, 2021 BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that SECTION 1. The Amendment to the Collective Bargaining Agreement between the City of Pueblo and the International Brotherhood of Police Officers Local 537, a copy of which is attached hereto, having been approved as to form by the City Attorney, is hereby approved and pursuant to the requirements of Section 8-14(l) of the Charter of the City of Pueblo, Colorado, is enacted as an Ordinance. SECTION 2. The Mayor is authorized to execute the Amendment to the Collective Bargaining Agreement in the name of the City and the City Clerk is directed to affix the seal of the City thereto and attest same. SECTION 3. The officers and staff of the City are authorized and directed to perform any and all acts consistent with the intent of this Ordinance to effectuate the policies and procedures described herein. SECTION 4. This Ordinance shall become effective on the date of final action by the Mayor and City Council. Action by City Council: Introduced and initial adoption of Ordinance by City Council on June 8, 2020 . Final adoption of Ordinance by City Council on June 22, 2020 . President of City Council Action by the Mayor: ☒ Approved on June 26, 2020 . □ Disapproved on based on the following objections: _ Mayor Action by City Council After Disapproval by the Mayor: □ Council did not act to override the Mayor's veto. □ Ordinance re-adopted on a vote of , on □ Council action on _______ failed to override the Mayor’s veto. President of City Council ATTEST City Clerk City Clerk’s Office Item # R-7 Background Paper for Proposed Ordinance COUNCIL MEETING DATE: June 8, 2020 TO: President Dennis E. Flores and Members of City Council VIA: Brenda Armijo, City Clerk FROM: Mayor Nicholas A. Gradisar Charles Hernandez, Director of Finance Marisa Pacheco, Director of Human Resources Robert Jagger, Sr. Asst. City Attorney SUBJECT: AN ORDINANCE AMENDING AND EXTENDING THE TERM OF THE COLLECTIVE BARGAINING AGREEMENT BETWEEN THE CITY OF PUEBLO AND THE INTERNATIONAL BROTHERHOOD OF POLICE OFFICERS LOCAL 537 FOR A ONE-YEAR PERIOD COMMENCING JANUARY 1, 2021 THROUGH DECEMBER 31, 2021 SUMMARY: Attached is a proposed amendment to the collective bargaining agreement between the City of Pueblo and the International Brotherhood of Police Officers Local 537 (“Union”) which would extend said agreement for calendar year 2021 and provide for no increase in the salary schedule during calendar year 2021. PREVIOUS COUNCIL ACTION: Pursuant to Ordinance No. 9526 approved September 9, 2019, the City entered into a collective bargaining agreement with the Union for calendar year 2020. The agreement granted the City the option to extend the agreement for two successive one-year terms with a 2.75% increase in the salary schedule for year 2021 and a 2.5% increase in the salary schedule for year 2022. BACKGROUND: Given the current economic conditions facing the City, the City is unwilling to approve any extension of the agreement which would provide for an increase in the salary schedule. The Union is agreeable to such an extension subject to the following condition (“Condition”): The parties agree to review the City’s revenues no later than November 15, 2020 in order to reassess the impact of the pandemic on City revenues. If said review shows that the City’s revenues – whether via normal taxation, fees, etc. or by State or Federal relief assistance – is at 100% or more of projected revenues for the period, then the parties shall meet and confer with respect to amending or waiving relevant portions of the current Labor Agreement in order to proceed with the original provisions of the Labor Agreement as to term, wages and all other respects. It is expressly agreed that the City shall have no obligation to agree to or approve any such amendment or waiver; provided, however, any such decision by the City shall not be arbitrary or capricious. In making its decision, the City may consider all relevant factors including projected revenues for fiscal year 2021. The amendment keeps in place the City’s right to extend or not to extend the agreement for calendar years 2022 and 2023 at the rates previously agreed. FINANCIAL IMPLICATIONS: There shall be no increase in monthly salary schedule for calendar year 2021 unless approved pursuant to the above referenced Condition. Health insurance will be determined in accordance with the Amendment. The amounts will be determined prior to the end of this calendar year subject to the following requirements: Plan design shall be determined by a majority vote of the Benefits Committee; provided, however, if no majority vote is cast or if the plan and benefits selected will result in any increase in the current premiums, the Mayor shall determine and select such plan and benefits. The City’s percentage share of premiums including the current maximum dollar amount the City must contribute toward any premium (“Contribution Cap”) shall be continued. The City and Union shall share equally in the costs of any premium increase approved by the Mayor, and the Contribution Cap shall be adjusted accordingly. BOARD/COMMISSION RECOMMENDATION: Not applicable. STAKEHOLDER PROCESS: Not applicable. ALTERNATIVES: If the City Council does not approve the amendment, the parties would commence negotiations for a successor agreement and all provisions would be subject to negotiations. RECOMMENDATION: City Administration recommends approval of this Ordinance. Attachments: Amendment to the Collective Bargaining Agreement between the City and the Union AMENDMENT TO COLLECTIVE BARGAINING AGREEMENT This Amendment to Collective Bargaining Agreement ("Amendment") is entered into this 0/1, day of 'L we, , 2020, by and between the International Brotherhood of Police Officers Local 537 ("Union") and Pueblo, a municipal corporation ("City"). WHEREAS, City and Union are parties to a collective bargaining agreement effective January 1, 2020 through December 31, 2020 (herein "Labor Agreement"); WHEREAS, although the City has the present option to extend the Labor Agreement for an additional one year term, the City is unwilling to approve such extension other than upon the amended terms as provided for herein. WHEREAS, Union desires and agrees to the extension of the Labor Agreement upon such terms. NOW THEREFOR, in consideration of the foregoing and mutual covenants contained herein, the parties agree as follows: A. Article 2 of the Labor Agreement is amended to read as follows: ARTICLE 2. TERM OF AGREEMENT This Agreement shall be effective January 1, 2020, and all of its provisions shall remain fully effective through December 31, 2021 and may be extended by the City for two (2) successive one (1)year terms. The decision to extend the term of this Agreement shall be made by the City Council on or before the 1st day of June 2021, or 2022, whichever the case may be. The extended term shall be upon the same terms and conditions, except that wages during each extended term shall be as provided or otherwise determined pursuant to Article 16 of the Agreement and health insurance shall be as provided or otherwise determined pursuant to Section 23.1. If the City Council shall fail to extend the term of the Agreement as stated above, then either party may commence negotiations for a successor agreement by serving notice pursuant to the City Charter on or before June 21, 2021, or June 21, 2022, as the case may be. B. Article 16 of the Labor Agreement is amended to read as follows: ARTICLE 16. SALARY Effective January 1, 2020,the monthly pay rate for each class,grade,step or position of employees covered by this Agreement shall be increased by 3.25% over the amount set by Ordinance establishing the 2019 pay levels. For calendar year 2021, the monthly salary schedule shall remain unchanged, and the Ordinance establishing the 2021 pay levels monthly shall be the same as the Ordinance establishing the 2020 pay levels. Effective January 1,2022,the monthly pay rate for each class,grade, step or position of employees covered by this Agreement shall be increased by 2.75% over the amount set by Ordinance establishing the 2021 pay levels. Effective January 1,2023,the monthly pay rate for each class,grade,step or position of employees covered by this Agreement shall be increased by 2.5% over the amount set by Ordinance establishing the 2022 pay levels. C. Article 23 of the Labor Agreement is amended to read as follows: ARTICLE 23. INSURANCE 23.1. Health insurance shall be as provided or otherwise determined pursuant to the August 26, 2019 Self-Funded Health Benefit Plan Amendment to the Labor Agreement, a copy of which is attached hereto, labelled Exhibit A and incorporated herein. 23.2. The City will pay up to twenty-five dollars ($25.00) per month toward the full cost of individual or family dental coverage.The City will provide a dental plan with no deductible. 23.3. Police officers who retire or are laid off during the term of this Agreement may retain the insurance coverage provided for herein by assuming the full cost of the premiums for such insurance. 23.4. If a police officer is killed in the line of duty, the City shall pay the full cost of health insurance and dental coverage for the employee's surviving spouse and children. Such payments for the surviving spouse will end two (2) years after the employee's death or upon the spouse's remarriage, whichever occurs first. Payments for a child will end two (2) years after the employee's death or upon the child reaching the age of nineteen (19)years, whichever occurs first. D. Miscellaneous Provisions 1. The parties stipulate, acknowledge and agree that, given the extension of the Labor Agreement agreed to herein and entered into in calendar year 2020 for calendar year 2021 and based upon the terms of this Labor Agreement as amended including but not limited to the City's discretion to approve any future extension, this Labor Agreement complies and satisfies all requirements of City Charter including but not limited to Section 18(1) which limits collective bargaining agreements to a term of not more than three years and all duties to negotiate a successor agreement for calendar year 2021 as provided in Section 8-14(m) or otherwise. 2. Each person signing this Amendment on behalf of a party represents and warrants that he or she has the requisite power and authority to enter into, execute and deliver this Amendment on behalf of such party and that this Amendment is a valid and legally binding obligation of such party enforceable against it. 3. The parties anticipate that the City's revenues will be significantly affected by the current pandemic involving the novel coronavirus causing the illness known as COVID-19 and the government and private employment shut-downs that have been imposed in an effort to mitigate the disease's effects. The parties agree to review the City's revenues no later than November 15, 2020 in order to reassess the impact of the pandemic on City revenues. If said review shows that the City's revenues —whether via normal taxation, fees, etc. or by State or Federal relief assistance — is at 100% or more of projected revenues for the period, then the parties shall meet and confer with respect to amending or waiving relevant portions of the current Labor Agreement in order to proceed with the original provisions of the Labor Agreement as to term, wages and all other respects. It is expressly agreed that the City shall have no obligation to agree to or approve any such amendment or waiver; provided, however, any such decision by the City shall not be arbitrary or capricious. In making its decision, the City may consider all relevant factors including projected revenues for fiscal year 2021. Executed in Pueblo, Colorado as of the date first above written. CITY OF PUEBLO LOCAL 537, INTERNATIONAL BROTHERHOOD OF POLICE OFFICERS By: By: Mayor esident ATTEST: ATTEST: OAAPK-yi) City Clerk Exhibit A AMENDMENT TO THE COLLECTIVE BARGAINING AGREEMENT This amendment to the collective bargaining agreement("Amendment") is executed this.2.4"4‘..A day of Ate 4 • S , 2019, by and between Pueblo, a municipal corporation ("City"), and International Brotherhood of Police Officers Local 537("Union")(collectively the"Parties"). WHEREAS,City and Union are parties to a collective bargaining agreement commencing January 1,2019 and ending December 31, 2019("Labor Agreement"). WHEREAS,the Parties are interested in transitioning from a fully-insured to a self-funded health insurance plan("Self-Funded Health Benefit Plan"). WHEREAS,in order to proceed with such transition, City desires and Union is willing to agree to certain terms and conditions which will be applicable to such Self-Funded Health Benefit Plan. NOW THEREFOR, in consideration of the foregoing and the mutual covenants herein contained,the Parties stipulate, acknowledge and agree as follows: 1. If the City elects after consultation with the Union to transition to a Self-Funded Health Benefit Plan to be available in calendar year 2020 and thereafter, the following terms and conditions shall govern such plan, shall bind the Parties and shall supersede any conflicting or inconsistent provision of the Labor Agreement: a. Plan Design. If a Self-Funded Health Benefit Plan is provided to covered employees of Amalgamated Transit Union Division No. 662 ("Transit"), the City, Transit, Pueblo Association of Government Employees, International Association of Fire Fighters Local No. 3 and Union shall meet as a committee and confer with respect to determining the health plan design and benefits to be provided under such plan. Each party shall have one vote for a total of five(5)votes with respect to selecting such health plan design. The majority vote of the committee shall determine the plan and benefits; provided, however, if no majority vote is cast or if the plan and benefits selected will result in any increase in the current premiums, the Mayor shall determine and select such plan and benefits. Alternatively, if a Self-Funded Health Benefit Plan is not provided to covered employees of Transit, the City,Pueblo Association of Government Employees, International Association of Fire Fighters Local No. 3 and Union shall meet as a committee and confer with respect to determining the health plan design and benefits to be provided under such plan. Each party shall have one vote for a total of four(4)votes with respect to selecting such health plan design. The majority vote of the committee shall determine the plan and benefits; provided, however, if no majority vote is cast or if the plan and benefits selected will result in any increase in the current premiums, the Mayor shall determine and select such plan and benefits. b. Premiums and Contributions. Premiums shall be determined by City based upon the recommendation of City's insurance broker consultant, the plan design chosen pursuant to above Subsection l.a., and the funding level acceptable to City. Employees who are eligible and select an offered plan shall pay the cost of any applicable premium by payroll deduction subject to the contributions herein provided. The City shall pay 95% of the actual premium for an individual policy per month but not to exceed$824.67. The City shall pay 78% of the actual cost of a premium toward the cost of a single plus spouse, single plus child or children or family policy per month for employees but not to exceed $1,433.75 with respect to a single plus spouse plan or$1,303.40 with respect to a single plus child or children plan or$1,680.72 with respect to a single plus family plan("Contribution Cap"). The Contribution Cap applicable to each coverage tier, i.e.individual,single plus spouse, single plus child or children or family coverage tier, shall be increased by fifty percent (50%) of any increase between the HMO Tier 1 premium for such coverage tier in the current year and the recommended HMO Tier 1 premium for such coverage tier in the subsequent year. If the employee elects coverage under a PPO option, if offered, the City's contribution to payment for such PPO shall be in the same dollar amount as if the employee had elected coverage under the HMO Tier 1 option for the same coverage tier. If an employee elects coverage under a high deductible health plan with Health Savings Account ("High Deductible HSA"), if offered,the City's monthly contribution for the High Deductible HSA shall be One Hundred Dollars ($100.00) per month less than monthly contribution required for the City's HMO Tier 1 plan,at the same coverage tier, and the City will contribute Sixty Six Dollars and 67 Cents ($66.67) per month to each employee's health savings account under such High Deductible HSA. c. Self-Funded Contracts and Documents. All contracts, programs and documents necessary to transition to and administer the Self-Funded Health Benefit Plan shall be determined and selected by City including but not limited to all costs and expenses of administrations, any third-party administration, if selected, stop loss policy, if selected, HIPAA privacy and security policies, and plan administration policies and procedures. d. Plan assets. All assets of the Self-Funded Health Benefit Plan, including but not limited to premiums, reserves and reimbursements, shall be the property of the City to be used solely for providing benefits for enrolled employees and assuring funding of the Self-Funded Health Benefit Plan at a risk level acceptable to City. 2. For calendar year 2020,the Union waives any present or future right, contingent or otherwise,that it may have to negotiate any change to the terms and conditions of this Amendment in any successor collective bargaining agreement. The intent and purpose of the foregoing waiver is that the Self-Funded Health Benefit Plan available in calendar year 2020 shall be subject to and governed by the terms and conditions of this Amendment,and this Amendment shall be construed and applied consistent with such intent and purpose. Notwithstanding the foregoing,the City shall not be prohibited or otherwise limited by this Amendment from asserting or otherwise maintaining in any future negotiation of a successor collective bargaining agreement that any term or condition of this Amendment is not a mandatory subject of bargaining. 3. To the extent the parties negotiate a successor contract to the Labor Agreement which provides for extension of the collective bargaining agreement in calendar year 2021 or 2022 and if the City provides a Self-Funded Health Benefit Plan in calendar year 2020 and if the City does so elect to extend the term of such successor collective bargaining agreement for calendar year 2021 or 2022, the Union may commence negotiations after receipt of notice of such election with respect to the terms and conditions of this Amendment by serving notice pursuant to Section 8-14, City Charter, on or before June 20, 2020 or June 20, 2021, as applicable. If the Union exercises such option to open negotiations with respect to the terms and conditions of this Amendment, no other provision of the collective bargaining agreement shall be opened for negotiations. 4. With respect to any provision relating to determining plan design during any subsequent calendar year negotiation for a successor collective bargaining agreement after 2020, including any reopening as set forth in above Section 3, the parties expressly stipulate and agree that the then current provisions for determining plan design shall govern the method and manner in which the plan design is selected for the following calendar year even though such provisions may be amended in the successor agreement. 5. Should the City elect to discontinue the Self-Funded Health Benefit Plan, the provisions of the Labor Agreement applicable to a fully-insured health benefit plan shall be reinstated;provided,however, any changes in the Contribution Caps shall be maintained. 6. Union expressly stipulates,acknowledges and agrees that City is materially relying upon the faithful performance of each and every provision of this Amendment, and without this Amendment, including each and every provision, the City would not consider proceeding with a transition from a fully funded health insurance plan to a Self-Funded Health Benefit Plan. 7. This Amendment represents the entire agreement between the Parties and supersedes all prior discussions and written agreements or understandings with respect to the subject matter of this Amendment. This Amendment may be amended only by an instrument in writing signed by the Parties. If any provision of this Amendment is held invalid or unenforceable, no other provision shall be affected by such holding, and all of the remaining provisions of this Amendment shall continue in full force and effect. This Amendment may be executed in multiple counterparts, each of which shall be deemed an original, and all of which together constitute one and the same agreement. 8. This Amendment shall be construed in accordance with and governed by the laws of the State of Colorado. 9. This Amendment shall be binding upon and inure to the benefit of the parties and their respective successors and assigns. 10. The persons signing this Amendment on behalf of Union represent and warrant that such parties and Union have the requisite power and authority to enter into, execute, and deliver this Amendment and that this Amendment is a valid and legally binding obligation of Union enforceable against Union in accordance with its terms. Executed at Pueblo, Colorado,the day and year first above written. UNION CITY INTERNATIONAL BROTHERHOOD Pueblo, a municipal corporation OF POLICE OFFICERS LOCAL 537 By / By 7‘ r ide t Mayor By ATTEST: Secre - - (LJO City Clerk