City of Culver City, California
City Council Agenda Item Report
RECOMMENDATION
That the City Council approve a side-letter contract amendment agreement between
the City and the Culver City Firefighters Local 1927, AFL-CIO and adopt a resolution
to amend the 2001-2004 Memorandum of Understanding (‘MOU”).
BACKGROUND
The Culver City Firefighters Association 2001-2004 MOU provides a clause which
states that employees with unused sick leave credit in excess of 384 hours for 40
hour week employees (576 hours for 56 hour week suppression employees) will be
paid in each pay period for one half of the unused sick leave accrued in that period.
Prior to 1991, these payments were considered to be compensation for PERS
retirement calculations.
In 1991, PERS informed the City that such reporting was unlawful. Although the City
ceased reporting these payments as compensation, it continued to pay the excess
sick leave to eligible employees as called for in the MOU. However, the MOU
language regarding accumulated sick leave being included for PERS retirement
calculation was never deleted from the firefighter MOU.
In April 2004, a formal written grievance was filed by two firefighters claiming that
their accumulated sick leave payoff, per the terms of the City’s MOU with the
Meeting Date: 07/11/05 Item Number: A-9
AGENDA ITEM: Approval of a Side-Letter Contract Amendment Agreement
between the City and the Culver City Firefighters Local 1927, AFL-CIO and
Adoption of a Resolution to Amend the 2001-2004 Memorandum of
Understanding
Contact Person/Dept.: Serena Wright
/Jack Hoffman
Phone Number: 310-253-5640
Fiscal Impact: Yes [x] No [] General Fund: Yes [x] No []
Public Hearing: [] Action Item: [x] Attachments: [x]
Public Notification: Master Notification List, 7/6/05; Culver City Firefighters Local 1927,
AFL-CIO 7/6/05
Department Approval:
Kermit Francis 6/30/05
CAO Approval:
Deborah Fancett for Jerry Fulwood 7/5/05
Interim City Controller Approval:
Marlee Chang 7/5/05City of Culver City, California
City Council Agenda Item Report
Firefighters Association, should be considered compensation for PERS retirement
calculations.
The City and the firefighter representatives have been meeting for some time
attempting to resolve the grievance.
DISCUSSION
A resolution to the grievance amending the current MOU has been approved by the
Firefighters Association and now submitted to the City Council for final approval.
The resolution is to amend the current language in the MOU to reflect that 1) the
accumulated sick leave credit payments are not considered compensation for PERS
retirement calculations; and 2) that eligible firefighter employees who have
accumulated above 720 hours (40 hour employees) or 1080 (56 hour employees)
may cash out the excess sick leave hours at the value of 100% versus the current
cash out value of 75%.
FISCAL ANALYSIS
The estimated total annual increased cost to adopt this contract amendment is
approximately $6,800. Adequate funds are appropriated in the proposed 2005 –
2006 budget to cover this increase.
The City Controller has reviewed this Fiscal Analysis.
ATTACHMENTS
1. Resolution and Exhibit “A”
MOTION
That the City Council
Approve a side-letter contract amendment agreement between the City and the
Culver City Firefighters Local 1927, AFL-CIO to amend the 2001-2004 Memorandum
of Understanding.
7/11/05
Approval of a Side-Letter Contract Amendment Agreement
between the City and the Culver City Firefighters Local
1927 AFL-CIO and Adoption of a Resolution to Amend the
2001 — 2004 Memorandum of Understanding
MEETING DATE
AGENDA ITEM
ATTACHMENTS
Pages
1 Resolution and Exhibit A
1 - 4RESOLUTION NO 2005-R
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CULVER CITY CALIFORNIA APPROVING A SIDE LETTER
CONTRACT AMENDMENT TO THE CURRENT 2001 — 2004
MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY
OF CULVER CITY AND THE CULVER CITY FIREFIGHTERS
LOCAL 1927, AFL-CIO
WHEREAS the Culver City Firefighters employee representatives and
City representatives have met and conferred and agreed on a side letter contract
amendment to the current 2001 — 2004 Memorandum of Understanding between the
City of Culver City and the Culver City Firefighters Local 1927, AFL-CIO
NOW, THEREFORE, the City Council of the City of Culver City, California,
DOES HEREBY RESOLVE as follows
The current 2001 - 2004 Memorandum of Understanding between the City
of Culver City and the Firefighters Local 1927 AFL-CIO, article IV —4 Sick Leave,
subsection (C) is hereby amended as set forth in Exhibit "A"
APPROVED and ADOPTED this day of 2005
ALBERT VERA, Mayor
City of Culver City California
ATTEST APPROVED AS TO FORM
CHRISTOPHER ARMENTA CAROL A SCHWAB
City Clerk City Attorney|101010101010101010 10
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28EXHIBIT "A"
SIDE LETTER AGREEMENT TO 2001-2004
MEMORANDUM OF UNDERSTANDING
BETWEEN THE CITY OF CULVER CITY
AND CULVER CITY FIREFIGHTERS
LOCAL 1927, AFL-CIO
EFFECTIVE UPON CITY COUNCIL APPROVAL
This side letter memorializes an agreement reached between the City of
Culver City ("City") and the Culver City Firefighters Local 1927, AFL-CIO
("Union") to reflect agreed upon amendments to Article IV — Sick Leave, of the
2001-2004 Memorandum of Understanding ("MOU") entered into between the
City and Union All other terms and conditions of the existing MOU and/or side
letters shall remain in full force and effect The City and Union agree that this
side letter agreement shall be incorporated into all future Memoranda of
Understanding between both parties, unless modified or removed in writing by
mutual agreement of the parties
Article IV —4— Sick Leave, subsection (C) shall now read
C Effective December 1, 1989, the excess time account balance
of any covered employee who has, as of that date, more than
720 hours (1080 for 56-hour week suppression employees) of
accrued sick lave shall be capped at that amount Employees
with an excess accrual of sick leave shall be entitled to retain
that balance, without additional accruals, until the balance is
reduced by usage to less than 720 hours (1080 for
suppression) That balance shall be usable for all sick leave
purposes, including pre-retirement distribution and payoff
upon separation or retirement
Employees with an accrual balance of less than 720 hours
(1080 for suppression) shall be limited to a maximum cap of
720 hours (1080 for suppression) as of December 1, 1989 and
thereafter|109| When an employee has accumulated 384 hours for 40-
hour week employees (576 hours for 56-hour week
suppression employees) of unused sick leave credit,
he/she will, thereafter, be paid in each pay period for
one-half of the unused sick leave accrued in that
CUO20/001 155532v3
1period Such payments shall not be considered
compensation or compensation earnable (i e , they are
Non-PERSable) for the purposes of PERS calculations
The remaining one-half will then be accumulated as
additional sick leave credit until an overall total of 720
hours (1080 hours for 56-hour week employees) sick
leave credit has been accumulated Upon reaching the
maximum accrual, the employee shall thereafter be
paid full value (100%) for all the unused sick leave
time accrual in each pay period that the employee's
sick leave time accrual remains above 720 hours (40-
hour per week employees) and above 1080 hours (56-
hour per week suppression employees) Such
payments shall not be considered compensation or
compensation earnable (i e , they are Non-PERSable)
for the purposes of PERS calculations The Union and
City specifically acknowledge that the increase in the
maximum bi-weekly payoff from three-quarters (75%)
to full value (100%) is in settlement of a grievance
filed in April 2004 and is given in exchange for a
release of any and all claims by the Union that any of
the sick leave payoffs described in this section are
PERSable and reportable to PERS as compensation
earnable|109| Employees eligible for accrual or payoff under this
provision may elect annually, on or before December 1
of each year, to accrue or be paid during the following
calendar year Once an election has been made it shall
continue from year to year unless changed in writing to
be effective the following January, or until the
employee's accrual maximum has been reached
It is the understanding of the City and Union that this side letter is of no
force or effect whatsoever unless and until adopted by resolution of the City
Council of the City
IN WITNESS WHEREOF, the parties hereto have executed this side letter
to the MOU this day of July, 2005
CUO20/001 155532v3
3Culver City Firefighters City of Culver City
Local 1927, AFL-CIO
By By Jerry Fulwood,
Joe Zimmerman, President Chief Administrative Officer
APPROVED AS TO FORM
Silver, Hadden & Silver
By
Robert Wexler
Attorneys for Culver City Firefighters
Local 1027, AFL-CIO
Liebert Cassidy Whitmore
By
Steven M Berliner
Attorneys for City of Culver City
CUO20/001 155532v3|1013|