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