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Home My WebLink About16 - NB-5 - Civic Openess in Negotiations Ordinance - 8/21/2012CITY COUNCIL AGENDA REPORT MEETING DATE: AUGUST 21, 2012 SUBJECT: CIVIC OPENNESS IN NEGOTIATIONS ORDINANCE DATE: AUGUST 21, 2012 FROM: THOMAS R. HATCH, CITY CHIEF EXECUTIVE OFFICER ITEM NUMBER: PRESENTATION BY: THOMAS R. HATCH, CITY CHIEF EXECUTIVE OFFICER BOBBY YOUNG, FINANCE & I.T. DIRECTOR FOR FURTHER INFORMATION CONTACT: THOMAS R. HATCH, CITY CHIEF EXECUTIVE OFFICER, (714) 754-5328 RECOMMENDED ACTION: Introduce, give first reading to be read by title only, and waive further reading of Ordinance No. 12-XXXX regarding civic openness in negotiations. BACKGROUND: In keeping with the City's policy of maintaining transparency and openness, staff has prepared the attached proposed Civic Openness in Negotiations (COIN) ordinance. This ordinance would set forth procedures and practices to keep the public informed of labor negotiations, consistent with the Meyers-Milias Brown Act (Government Code section 3500 et seq.). ANALYSIS: The proposed ordinance would apply to all meet and confer processes undertaken pursuant to the Meyers-Milias Brown Act, where either the City or a recognized employee organization proposes changes in wages, hours, or any other terms or conditions of employment. It would establish a principal negotiator for the City. It would establish a method for an independent economic analysis of the fiscal impacts attributed to each term and condition of employment subject to the meet and confer process. This analysis would be made available to the public at least thirty (30) days before consideration by the City Council of an initial meet and confer proposal to be presented to any recognized employee organization of an amended, extended, successor, or original memorandum of understanding. The proposed ordinance would also set forth requirements for reporting out of closed session with the facts, as well as their significance and impact, of all prior offers, counteroffers, and meet and confer -related bargaining positions received or made by either the City or an employee organization and that are no longer being considered. Each City Council member would be required to disclose the identity of any employee association 1 representative with whom that Council Member has had any communications regarding the subject matter of a pending meet and confer process. The proposed ordinance would require that, prior to the rendering of a final City Council determination regarding adoption of a memorandum of understanding, the matter shall be heard at a minimum of two (2) City Council meetings, and the materials for the matter shall be posted on the City's website at least seven (7) days' prior to the first meeting. The proposed ordinance also includes a reorganization Chapter VI (Personnel) of the Costa Mesa Municipal Code to include articles, Article 1 consisting of the existing sections within the chapter, and Article 2 consisting of the Civic Openness in Negotiations (COIN) sections. FISCAL REVIEW: If adopted, the City would be required to procure an independent financial auditor/consultant for the purpose of valuing the contract(s) 30 days prior to being negotiated. The amount of this service is unknown at this time. LEGAL REVIEW: The City Attorney's Office has reviewed the proposed ordinance. CONCLUSION: In order to establish Civic Openness in Negotiations, staff recommends adopting the attached proposed ordinance, at this time introducing, giving first reading to be read by title only, and waiving further reading of the ordinance. THOMAS R. HATCH City Chief Executive Officer THOMAS P. DUARTE City Attorney BOBBY YOUNG Finance and I.T. Director Attachments: 1 — Proaosed Civil Openness in Neaotiations Ordinance 2 — Sample Financial Analysis for Contracts with: Costa Mesa Employees Association (CMCEA), Costa Mesa Police Officer's Association (CMPOA), Costa Mesa Firefighter's Association (CMFA) Distribution: City CEO City Clerk E ORDINANCE NO. 12 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA AMENDING CHAPTER VI OF TITLE 2 OF THE COSTA MESA MUNICIPAL CODE TO ORGANIZE EXISTING SECTIONS INTO ARTICLE 1 AND ADD A NEW ARTICLE 2 REGARDING CIVIC OPENNESS IN NEGOTIATIONS WHEREAS, the City Council of the City of Costa Mesa finds that civic openness during labor negotiations is essential to good government; and WHEREAS, Government Code section 3500 et seq. is known as the "Meyers- Milias-Brown Act" ("the Act"); and WHEREAS, Government Code section 3500 provides in pertinent part that the purpose and intent of the Act is "to strengthen merit, civil service and other methods of administering employer-employee relations through the establishment of uniform and orderly methods of communication between employees and the public agencies by which they are employed"; and WHEREAS, the City Council finds that public information and knowledge is enhanced by virtue of employees and public agencies undertaking their duties and obligations pursuant to the Act in an open and transparent manner; and WHEREAS, the City Council finds that the communication between the City and its employees required by the Act, regarding changes in wages, hours and other terms and conditions of employment, would benefit from the opinions of an informed and knowledgeable public; and WHEREAS, it is the determination of the City Council that performance by the City and its employees of their respective duties and obligations under the Act will be facilitated when undertaken in the presence of an informed public. WHEREFORE, the City Council of the City of Costa Mesa does hereby ordain as follows: Section 1. Article I is hereby added to Chapter VI (Personnel) of Title 2 of the Costa Mesa Municipal Code to include existing Sections 2-210 through 2-235. Article 1 shall be titled, "Purpose, Rules, and Retirement." Section 2. Article 2 is hereby added to Chapter VI (Personnel) of Title 2 of the Costa Mesa Municipal Code to read as follows: ARTICLE 2. — CIVIC OPENNESS IN NEGOTIATIONS Section 2-236. - Applicability. This article shall apply to all meet and confer processes undertaken pursuant to the Meyers-Milias-Brown Act, where either a recognized employee organization or the city, through their respective representatives, propose changes in wages, hours, or any other terms or conditions of employment. In an effort to avoid inherent conflicts of interest, the principal representative negotiating on behalf of the city 1) shall not be an employee of the city, 2) shall not be a member of any retirement system providing a defined benefit to the member, and 3) shall have a demonstrated expertise in negotiating labor and employment agreements on behalf of municipalities. The city council shall designate one or more Executive employees to be present during negotiations and to assist the principal negotiator as the city council and/or principal negotiator deem appropriate. Section 2-237. - Independent Economic Analysis. (a) In order to implement the requirements of section 2-236, the city shall have prepared on its behalf, by an independent auditor in cooperation with the Finance Director, a study and supplemental data upon which the study is based, determining the fiscal impacts attributed to each term and condition of employment made available to the members of all recognized employee organizations. (b) The above report and findings of the independent auditor shall be completed and made available for review by the city council and the public at least thirty (30) days before consideration by the city council of an initial meet and confer proposal to be presented to any recognized employee organization regarding negotiation of an amended, extended, successor, or original memorandum of understanding. (c) The above report shall be regularly updated by the independent auditor to itemize the costs and the funded and unfunded actuarial liability which would or may result from adoption or acceptance of each meet and confer proposal. These measurements shall display the fiscal impacts of the employee association and/or city proposals. The report shall be prepared in the following format, including all benefit and or pay aspects of each MOU, and shall include written council member acknowledgement that the report has been read and considered by the signing council member. REPORT FORMAT Base Salary Pension/Retirement Benefit Cafeteria - Health Benefits Bilingual Pay Shorthand Pay Holiday Allowance Pay Longevity Pay Class A/B License Pay Shift Differential Pay Shift Differential Pay - A/M Emergency Med Dispatch Pay Canine Care Pay Motor Officer Maintenance Pay Motor Officer Assignment Pay Motor Training Officer Assign Pay POST Advanced Certificate Pay POST Intermediate Certificate Pay Uniform Pay -Patrol - 2.5% Paramedic Assignment Pay 1st Medic Re -Certification Pay 2nd Medic Re -Certification 3rd Medic Re -Certification Pay Medic Recertification Bonus Pay Investigator II Certification Pay Instructor II Certification Pay Instructor III Certification Pay Prevention Officer II Certification Pay Prevention Officer III Certification Pay Public Education Officer Certification Pay Driver/Operator Certification Pay Rescue Specialist Certification Pay Confined Space Oper Tech Certification Pay Specialized Rescue Tech Certification Pay Firefighter II Certification Pay Fire Officer Certification Pay Chief Officer Certification Pay Fire Certification Pay - 60 Units Fire Certification Pay - 120 Units Fire Certification Pay - 180 ASSOCIATION VALUE OF EXISTING PROJECTED EXISTING PROJECTED EXISTING PROJECTED BENEFIT/PAY BENEFIT/ COST TO COST TO UNFUNDED UNFUNDED FUNDED FUNDED PAY CITY CITY LIABILITY LIABILITY LIABILITY LIABILITY COST COST Base Salary Pension/Retirement Benefit Cafeteria - Health Benefits Bilingual Pay Shorthand Pay Holiday Allowance Pay Longevity Pay Class A/B License Pay Shift Differential Pay Shift Differential Pay - A/M Emergency Med Dispatch Pay Canine Care Pay Motor Officer Maintenance Pay Motor Officer Assignment Pay Motor Training Officer Assign Pay POST Advanced Certificate Pay POST Intermediate Certificate Pay Uniform Pay -Patrol - 2.5% Paramedic Assignment Pay 1st Medic Re -Certification Pay 2nd Medic Re -Certification 3rd Medic Re -Certification Pay Medic Recertification Bonus Pay Investigator II Certification Pay Instructor II Certification Pay Instructor III Certification Pay Prevention Officer II Certification Pay Prevention Officer III Certification Pay Public Education Officer Certification Pay Driver/Operator Certification Pay Rescue Specialist Certification Pay Confined Space Oper Tech Certification Pay Specialized Rescue Tech Certification Pay Firefighter II Certification Pay Fire Officer Certification Pay Chief Officer Certification Pay Fire Certification Pay - 60 Units Fire Certification Pay - 120 Units Fire Certification Pay - 180 Units Fire Certification Pay - AS / AA Degree Fire Certification Pay - BS/BA Degree Fire Certification Pay - MS/MA Degree Others as deemed necessary COUNCIL MEMBER ACKNOWLEDGMENT Council member (initials) Dated Council member (initials) Dated Council member (initials) Dated Council member (initials) Dated Council member (initials) Dated Section 2-238. — Civic Openness in the Meet and Confer Process. (a) Government Code section 3505, as it currently exists, mandates that changes in wages, hours and other terms and conditions of employment be preceded by participation of representatives from both the recognized employee organization and the city in good faith "meet and confer." Government Code section 54957.6 authorizes the city council to meet in closed session with its designated representatives for the purpose of reviewing its meet and confer position and instructing its designated representatives as to how to participate in the meet and confer process. The city council shall report out from such closed session the facts, including their significance and impacts, relating to any and all prior offers, counteroffers, and meet and confer -related bargaining positions made by either the city and representatives of any employee organization, which were communicated to the city council during the closed session and are no longer being considered. City council representatives shall have a duty to advise the city council during any such closed session of offers, counteroffers, information, and/or statements of position discussed by employee organization and city representatives participating in the meet and confer process since the last such closed session. This section shall not mandate publication of city council -directed future proposals and/or the analytical thought process utilized by the city council in addressing issues subject to the meet and confer process. (b) Each city council member shall disclose both publicly and during closed sessions, the identity of any and all employee association representatives with whom the city council member has had any verbal, written, electronic or other communication(s) regarding a subject matter of a pending meet and confer process. Section 2-239. - Adoption of Memorandum of Understanding. Excepting the resolution of any meet and confer impasse, the rendering of a final city council determination regarding adoption of a memorandum of understanding shall only be undertaken after the matter has been heard at a minimum of two (2) city council meetings wherein the public has had the opportunity to review and comment on the matter. Not less than seven (7) days prior to the first city council meeting where the matter shall be heard, the city shall post on its website those materials explaining the basis for the memorandum of understanding under consideration for adoption. Section 3. Inconsistencies. Any provision of the Costa Mesa Municipal Code or appendices thereto inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and or further, is hereby repealed or modified to the extent necessary to affect the provisions of this Ordinance. Section 4. Severability. If any provision or clause of this Ordinance or the application thereof to any person or circumstances is held to be unconstitutional or otherwise invalid by any court of competent jurisdiction, such invalidity shall not affect other provisions or clauses or applications of this Ordinance which can be implemented without the invalid provision, clause or application; and to this end, the provisions of this Ordinance are declared to be severable. Section 5. Publication. This Ordinance shall take effect and be in full force thirty (30) days from and after the passage thereof, and prior to the expiration of fifteen (15) days from its passage shall be published once in the ORANGE COAST DAILY PILOT, a newspaper of general circulation, printed and published in the City of Costa Mesa or, in the alternative, the City Clerk may cause to be published a summary of this Ordinance and a certified copy of the text of this Ordinance shall be posted in the office of the City Clerk five (5) days prior to the date of adoption of this Ordinance, and within fifteen (15) days after adoption, the City Clerk shall cause to be published the aforementioned summary and shall post in the office of the City Clerk a certified copy of this Ordinance together with the names and members of the City Council voting for and against the same. PASSED AND ADOPTED this day of , 2012. Eric Bever, Mayor ATTEST: Interim City Clerk of the City of Costa Mesa APPROVED AS TO FORM: City Attorney STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss CITY OF COSTA MESA I, BRENDA GREEN, Interim City Clerk and ex -officio Clerk of the City Council of the City of Costa Mesa, hereby certify that the above foregoing Ordinance No. 12- was introduced and considered section by section at a regular meeting of said City Council held on the day of , 2012, and thereafter passed and adopted as a whole at the regular meeting of said City Council held on the day of , 2012, by the following call vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: IN WITNESS WHEREOF, I have hereby set my hand and affixed the Seal of the City of Costa Mesa this day of , 2012. Interim City Clerk and Ex -Officio Clerk of the City Council of the City of Costa Mesa I hereby certify that the foregoing is the original of Ordinance No. duly passed and adopted by the Costa Mesa City Council at the regular meeting held , 2012, and that Summaries of the Ordinance were published in the Daily Pilot on and , 2012. Brenda Green, Interim City Clerk and Ex - Officio Clerk of the City Council of the City of Costa Mesa (SEAL) Sample Financial Anaylsis for COIN Ordinance Costa Mesa City Employee's Association (CMCEA) Existing Value of Cost Benefit To City Base Salary varies $ 15,602,214 Pension / Retirement Benefits 2.5%@55 $ 3,471,810 Attachment 2 Projected 2.0%@60 Projected Existing Cafeteria Plan Benefits $ 9,588 $ 2,109,360 Bilingual Pay 5.00% $ 128,395 Bilingual Pay 2.50% $ 4,510 Class A / B License Pay $ 700 $ 10,500 Emergency Med Dispatch Pay 5.00% $ 75,580 Matron Duty Pay 5.00% $ - Shift Differential/PM Pay 5.00% $ 39,523 Shift Differential/AM Pay 10.00% $ 61,492 Shift Differential Pay 7.50% $ 53,333 Shorthand Pay 2.50% $ 7,746 Total $ 21,564,463 Attachment 2 Projected Existing Projected Existing Projected Cost Unfunded Unfunded Funded Funded To City Liability Liability Liability Liability Page 1 of 3 $ 77,846,261 $ 124,738,016 Attachment 2 Sample Financial Anaylsis for COIN Ordinance Costa Mesa Police Officer's Assocation (CMPOA) Existing Projected Existing Projected Existing Projected Value of Cost Cost Unfunded Unfunded Funded Funded Benefit To City To City Liability Liability Liability Liability Base Salary varies $ 12,287,280 Pension / Retirement Benefits 3%@50 $ 6,048,226 $ 81,189,970 $ 109,441,036 Cafeteria Plan Benefits $ 7,572 $ 938,928 Bilingual Pay 5.00% $ 99,940 Bilingual Pay 2.50% $ 32,487 Canine Care Pay 8.75% $ 8,329 Field Training Pay 5.00% $ - Police Hazardous Materials Pay - $ - Motor Officer Maintenance Pay $ 4,637 $ 41,733 Motor Officer Assignment Pay 5.00% $ 45,157 Motor Training Officer Assign Pay 5.00% $ 4,997 POST Advanced Certificate Pay 10.00% $ 1,005,622 POST Intermediate Certificate Pay 5.00% $ 70,232 Shooting Pay - Police Officers Pay - $ - Uniform Pay -Patrol - 2.5% 2.50% $ 256,783 Total $ 20,839,714 Page 2 of 3 Sample Financial Anaylsis for COIN Ordinance Costa Mesa Firefighter's Association (CMFA) Attachment 2 Projected Existing Existing Existing Value of Cost Unfunded Benefit To City Base Salary varies $ 7,844,533 Pension / Retirement Benefits 3%@50 $ 4,675,256 Cafeteria Plan Benefits $ 6,672 $ 560,448 Paramedic Assignment Pay 10.00% $ 7,573 1st Medic Re -Certification Pay 11.25% $ - 2nd Medic Re -Certification 12.50% $ 28,687 3rd Medic Re -Certification Pay 13.75% $ 281,415 Medic Recertification Bonus Pay $ 500 $ 7,500 Bilingual Pay 5.00% $ 74,085 Bilingual Pay 2.50% $ 2,469 Investigator II Certification Pay 0.75% Instructor II Certification Pay 0.75% Instructor III Certification Pay 0.75% Prevention Officer II Certification Pay 0.75% Prevention Officer III Certification Pay 0.75% Public Education Officer Certification Pay 0.75% Driver/Operator Certification Pay 0.75% Rescue Specialist Certification Pay 0.75% Confined Space Oper Tech Certification Pay 0.75% Specialized Rescue Tech Certification Pay 0.75% Firefighter II Certification Pay $ 840 Fire Officer Certification Pay 1.75% Chief Officer Certification Pay 1.75% Fire Certification Pay - 60 Units $ 1,440 Fire Certification Pay - 120 Units $ 2,160 Fire Certification Pay - 180 Units $ 2,160 Fire Certification Pay - AS / AA Degree 1.75% Fire Certification Pay - BS/BA Degree 2.25% Fire Certification Pay - MS/MA Degree 2.25% Maximum allowed 7.75% Subtotal Certifications $ 460,577 Holiday Allowance Pay $ 376,717 Longevity Pay $ 2,304 Total $ 14,321,564 Attachment 2 Projected Existing Projected Existing Projected Cost Unfunded Unfunded Funded Funded To City Liability Liability Liability Liability Page 3 of 3 $ 42,535,304 $ 123,002,249