El Segundo Police and Firefighters Got Huge Raises During the Great Recession

Posted on May 20, 2014 by Mike

by Michael D. Robbins
Director, Public Safety Project, PublicSafetyProject.org

May 20, 2014

The April 8, 2014 El Segundo General Municipal Election is over, and Mayor Bill Fisher has been defeated, in large part because of his tax-and-spend policies and his support for wildly excessive and unsustainable pay raises for the already over-compensated firefighter and police unions that helped launch his political career with lots of campaign support, and for their managers to prevent “salary compaction”.

However, Fisher, and also El Segundo Police Sergeant and former El Segundo Police Officers’ Association (union) President Mike Gill, have continued to campaign after the election is over. They continue to claim the El Segundo firefighter and police union salary increases I cited in my information flyers distributed before the election never happened, despite my overwhelming proof. Here is even more detailed proof for those who won’t click on the links to the official El Segundo City Council Agenda Packet PDF files on the City’s website to read the documents.

Sergeant Mike Gill’s multiple false statements at the May 6, 2014 El Segundo City Council meeting are troublesome, given that he is a sworn police sergeant in a position of authority and public trust, who must be trusted to testify honestly and accurately in court in the normal course of his police duties.

Mayor Fisher supported pay raises ranging from 11.25% to 23% for the firefighter and police unions, in three or four installments over three years, and single pay raises ranging from 14.9% to 32.3% for their managers, during the first three years of the Great Recession. All of the raises were approved well after the Great Recession started, and many included retroactive pay raises effective up to 6 and 9 months before the union contracts were approved. The firefighter and police union contracts included additional 5% annual “step raises”, and additional periodic “longevity raises”.

The pay raises were approved first in closed session City Council meetings, and then again in public as a formality at the open session City Council meetings referenced in the table below.

The total pay raises included the following (not counting compounding, which actually results in higher total raises):

JOB CLASSIFICATION PAY RAISE DATE APPROVED CONSENT AGENDA ITEM
Firefighters 11.25% April 7, 2009 E11
Fire Engineers 11.25% April 7, 2009 E11
Fire Captains 11.25% April 7, 2009 E11
Police Officers 15.0% April 7, 2009 E12
Police Sergeants 15.0% April 7, 2009 E12
Police Lieutenants 18.0% April 7, 2009 E8
Police Captains 23.0% April 7, 2009 E8
Fire Battalion Chiefs 16.9% December 2, 2008 E8
Deputy Fire Chief 14.9% December 2, 2008 E8
Police Chief 23% December 2, 2008 E8
Fire Chief 32.3% December 2, 2008 E8

In addition to the above pay raises, the firefighter and police employees were (and still are) given 5% annual “step raises” in each of the first four or five years after the year they are promoted or assigned to a new position.

In addition to the above pay raises, the firefighter and police employees were (and still are) given periodic “longevity” raises every so many years.

The information below provides details about the big pay raises given to the El Segundo firefighters and police during the Great Recession.

A short list of police and firefifghter pay raises in 2009 and 2008 appear below, followed by more detailed lists of police and firefighter key contract provisions.

The firefighters union contract MOU No. 3928 was approved at the April 7, 2009 El Segundo City Council meeting (Consent Agenda item E11), well after the 2008 recession started. Look at the agenda item (E11) in the Agenda Packet to see the MOU. It covers the Firefighter, Fire Paramedic, Fire Engineer, and Fire Captain ranks (but not the Battalion Chief, Deputy Fire Chief, and Fire Chief ranks, which are management ranks).

It provided an 11.25% raise during the Great Recession, in the form of three consecutive 3.75% raises.

It included the following (and other) terms:

  1. Three-year term, commencing on July 1, 2008, and ending on September 30, 2011.
  2. A 3.75% salary increase for Firefighters, Fire Engineers, and Fire Captains, retroactively effective October 14, 2008.
  3. A 3.75% salary increase for Firefighters, Fire Engineers, and Fire Captains, effective July 1, 2009.
  4. A 3.75% salary increase for Firefighters, Fire Engineers, and Fire Captains, effective July 1, 2010.

The police officers union contract MOU No. 3929 was approved at the April 7, 2009 El Segundo City Council meeting (Consent Agenda item E12), well after the 2008 recession started. Look at the agenda item (E12) in the Agenda Packet to see the MOU. It covers the Police Officer and Police Sergeant ranks (the two lowest ranks).

It provided a 15% raise during the Great Recession, in the form of three consecutive 5% raises.

It included the following (and other) terms:

  1. Three-year term, commencing on July 1, 2008, and ending on September 30, 2011.
  2. A 5% salary increase for Police Officers and Police Sergeants, retroactively effective October 14, 2008.
  3. A 5% salary increase for Police Officers and Police Sergeants, effective July 1, 2009.
  4. A 5% salary increase for Police Officers and Police Sergeants, effective July 1, 2010.

The Police Managers union contract MOU No. ____ was approved at the April 7, 2009 El Segundo City Council meeting (Consent Agenda item E8), well after the 2008 recession started. Look at the agenda item (E8) in the Agenda Packet to see the MOU. It covers the Police Lieutenant and Police Captain ranks.

It provided an 18% raise for Police Lieutenants and a 23% raise for Police Captains during the Great Recession, in the form of four consecutive raises effective retroactively on July 1, 2008 and October 1, 2008, and also on October 1, 2009 and October 1, 2010. (ARTICLE 2 SALARY, Section 2.01 Base Salary, Agenda Packet page 75)

It included the following (and other) terms:

  1. A 4% salary increase for Police Lieutenants and Police Captains, retroactively effective July 1, 2008. (ARTICLE 2 SALARY, Section 2.01 Base Salary, Agenda Packet page 75, MOU page 3)
  2. A 9% salary increase for Police Captains and a 4% salary increase for Police Lieutenants, retroactively effective October 1, 2008. (ARTICLE 2 SALARY, Section 2.01 Base Salary, Agenda Packet page 75, MOU page 3)
  3. A 5% salary increase for Police Lieutenants and Police Captains, effective October 1, 2009. (ARTICLE 2 SALARY, Section 2.01 Base Salary, Agenda Packet page 75, MOU page 3)
  4. A 5% salary increase for Police Lieutenants and Police Captains, effective October 1, 2010. (ARTICLE 2 SALARY, Section 2.01 Base Salary, Agenda Packet page 75, MOU page 3)

December 2, 2008 El Segundo City Council Resolution-Management Raises (0.98 MB PDF file)

The City Council resolution providing Executive Management, Mid-Management/Confidential, and Public Safety Management city employee raises and benefits increases was approved at the December 2, 2008 El Segundo City Council meeting (Consent Agenda item E8), well after the 2008 Great Recession started. Look at the agenda item (E8) in the Agenda Packet to see the Resolution approving the raises. It covers the Battalion Chief, Deputy Fire Chief, Fire Chief, and Police Chief ranks, which are all management ranks).

It provided substantial raises to prevent salary compaction between management employees and their subordinate union member employees who received large pay increases. Thus, large union employee raises are used as justification for large management employee raises.

It included the following (and other) terms:

  1. Salary Compaction (Compression) in the Police and Fire Departments


    In order to address salary compaction (compression) issues between management job classifications and (labor union) bargaining unit job classifications, the following salary increases establish 5% compensation differentials
    between supervisors and subordinates    , and result in the Police chief and Fire Chief being assigned to the same salary range. Salary Compaction Pay Adjustments, with the exception of the Fire Chief, effective July 1, 2008, will be effective October 1, 2008. The percentage increases listed below include the 4% salary increase provided to all Management/Confidential Employees.

    1. An increase of 16.9% to the Salary Range for Battalion Chief (Salary Range 60f).
    2. An increase of 14.9% to the Salary Range for Deputy Fire Chief (Salary Range 69f).
    3. An increase of 32.3% to the Salary Range for Fire Chief (Salary Range 70f).
    4. An increase of 23% to the Salary Range for Police Chief (Salary Range 60p).

      PAY – LEAVE PAYOUT – PENSION SPIKE:

      Police Chief David Cummings received a 23% pay increase effective October 1, 2008, which spiked his pay, his vacation and sick leave payout (cash-out) value (for his vacation and sick leave hours which were accrued, accumulated, and rolled-over from year to year), and his pension. His total 2009 earnings was $425,775 – consisting of $225,627 Regular Earnings, $480 Special Compensation, and $199,668 Leave Payout. He retired in 2009 with a pension of $210,213.36 yearly ($17,517.78 monthly) according to CaliforniaPensionReform.com, plus medical insurance, for the rest of his life.

      The reason given for his 23% pay increase that spiked his pay, leave payout, and pension was salary compaction, also known as salary compression, caused by (large) pay increases given to the police union members.

  2. A 4.0% salary increase for all Executive Management, Mid-Management/Confidential Employees, with the exception of the City Manager, effective 7/5/2008.

    For reference purposes, the Consumer Price Index (CPI-U) for the Los Angeles-Riverside-Orange County area averaged 3.52% for the twelve month period from July 2007 – June 2008.

The following are key detailed provisions of the MOUs.

April 7. 2009 El Segundo Firefighters Union IAFF Local 3682 and El Segundo Police Union Contract Memorandum of Understanding (MOU) labor agreement contract documents (2.08 MB PDF file)

The firefighters union contract MOU No. 3928 was approved at the April 7, 2009 El Segundo City Council meeting (Consent Agenda item E11), well after the 2008 recession started. Look at the agenda item (E11) in the Agenda Packet to see the MOU. It covers the Firefighter, Fire Paramedic, Fire Engineer, and Fire Captain ranks (but not the Battalion Chief, Deputy Fire Chief, and Fire Chief ranks, which are management ranks).

It provided an 11.25% raise during the Great Recession, in the form of three consecutive 3.75% raises.

It included the following (and other) terms:

  1. Three-year term, commencing on July 1, 2008, and ending on September 30, 2011.
  2. A 3.75% salary increase for Firefighters, Fire Engineers, and Fire Captains, retroactively effective October 14, 2008.
  3. A 3.75% salary increase for Firefighters, Fire Engineers, and Fire Captains, effective July 1, 2009.
  4. A 3.75% salary increase for Firefighters, Fire Engineers, and Fire Captains, effective July 1, 2010.
  5. Provision that the maximum future City contribution for medical insurance, for both active employees and retirees, shall be $1,800 per month.
  6. Amendment to the City’s contract with PERS to provide Section 21548, “Pre-Retirement Option 2W Death Benefit”.
  7. JOB SECURITY AND LAYOFFS BASED ON SENIORITY, NOT JOB PERFORMANCE AND COST TO EMPLOYER: Permanent employees shall be laid off in the order of seniority in City service, that is the employee with the least City service shall be laid off first, followed by the employee with the second least seniority in City service, etc. Seniority shall be determined by hire date. (MOU Page 32, ARTICLE 22 – POLICY AND PROCEDURE AGREEMENTS, Section 22.08 LAYOFF AND RECALL POLICY, paragraph 6. a.)
  8. RANK FOR RANK REHIRE POLICY TO FILL TEMPORARY VACANCIES: The City shall use a rank-for-rank rehire policy to fill temporary vacancies resulting from vacation and sick leave, etc. if there is available for rehire a firefighter holding the same rank as the absent firefighter.

    The rank-for-rank rehire scheme is a form of union abuse used to drive up overtime hours and compensation costs, especially when firefighters game the system by scheduling vacation and sick leave to maximize the overtime hours and pay for each other.

    It prevents the City from rehiring a less expensive firefighter who is trained and qualified to a hire rank but not promoted to that rank due to lack of an available position. There was a fraud investigation for this type of abuse by Clark County, Nevada firefighters.

    (MOU Page 31, ARTICLE 22 – POLICY AND PROCEDURE AGREEMENTS, Section 22.06 RANK FOR RANK POLICY, paragraph 1.)

  9. UNION DOUBLE-COMPENSATION PROVISION: $600 per year ($50 per month) additional Premium Pay (“Special Compensation”) for having a Class A California Driver License to drive the fire engine and fire truck, which is already an existing job duty in the job description of Fire Engineers for which Fire Engineers are given a higher base salary when they are promoted from Firefighter to Fire Engineer. The City shall provide (and pay for) the training and the means to obtain this Drivers License or else the City shall pay the Premium Pay without the employee obtaining the Drivers License. (MOU Pages 8-9, ARTICLE 3 – INCENTIVE COMPENSATION, Section 3.08 CLASS “A” DRIVER’S LICENSE PREMIUM PAY, paragraphs 1 and 2.)
  10. UNION DOUBLE-COMPENSATION PROVISION: Provision that effective October 14, 2008, firefighters get $600 per year ($50 per month) additional Premium Pay (“Special Compensation”) for having a Commercial Class B Restricted California Driver’s License, firefighters restricted noncommercial Class “B” Driver’s License, or equivalent (and/or? possessing a valid EMT-D certification or Los Angeles County Paramedic Accreditation – the MOU contract wording is not clear). (MOU Page 10, ARTICLE 4 – EDUCATIONAL PROGRAMS, Section 4.01 INCENTIVE PAY, paragraph 1.)
  11. UNION NON-JOB-RELATED COMPENSATION PROVISION: Provision that effective October 14, 2008 a Bachelor’s college degree or a Master’s college degree in Political Science shall be eligible for additional reimbursement for tuition and books and for educational incentive compensation. Thus, the City’s taxpayers pay extra “special compensation” to firefighters who get a college degree in political science to learn how to better campaign to elect the City Council candidates who will give them the biggest salary, benefits, and pension increases. (MOU Page 10, ARTICLE 4 – EDUCATIONAL PROGRAMS, Section 4.01 INCENTIVE PAY, paragraphs 2. c. and 2. d.; and MOU Pages 24-25, ARTICLE 18 – EDUCATIONAL REIMBURSEMENT, Section 18.01 REIMBURSEMENT FOR COURSES, and Section 18.02 REIMBURSEMENT FOR TUITION AND BOOKS.)
  12. UNION FEATHERBEDDING PROVISION: Members will perform touch-up painting (small jobs handled with 1″ brush and quart can). Such touch-up painting shall exclude painting of entire walls, rooms, or structures. (MOU Page 27, ARTICLE 20 – MAINTENANCE AND REPAIRS, Section 20.01 LIMITED MAINTENANCE AND REPAIR, paragraph 2.)
  13. UNION FEATHERBEDDING PROVISION: Members will perform minor, unskilled carpentry maintenance and repair. Such carpentry responsibilities shall not include maintenance or repairs requiring special skills, knowledge, or tools beyond household handyman level.(MOU Page 27, ARTICLE 20 – MAINTENANCE AND REPAIRS, Section 20.01 LIMITED MAINTENANCE AND REPAIR, paragraph 1.)

The police officers union contract MOU No. 3929 was approved at the April 7, 2009 El Segundo City Council meeting (Consent Agenda item E12), well after the 2008 recession started. Look at the agenda item (E12) in the Agenda Packet to see the MOU. It covers the Police Officer and Police Sergeant ranks (the two lowest ranks).

It provided a 15% raise during the Great Recession, in the form of three consecutive 5% raises.

It included the following (and other) terms:

  1. Three-year term, commencing on July 1, 2008, and ending on September 30, 2011.
  2. A 5% salary increase for Police Officers and Police Sergeants, retroactively effective October 14, 2008.
  3. A 5% salary increase for Police Officers and Police Sergeants, effective July 1, 2009.
  4. A 5% salary increase for Police Officers and Police Sergeants, effective July 1, 2010.
  5. Provision that the maximum future City contribution for medical insurance, for both active employees and retirees, shall be $1,800 per month.
  6. PERS Retirement Formula – The City has implemented the 3% at 50 PERS retirement formula for all affected employees. Thus, police union members can retire at age 50 with up to 90% of their single highest pay year as their annual pension for the rest of their lives (3% per year of service) (ARTICLE 18 RETIREMENT BENEFITS, Section 18.01 PERS Retirement Formula).
  7. PERS Pickup Reported as “Compensation Earnable” – The City shall pay on behalf of each employee his or her required 9% “employee contribution” to CalPERS. Additionally, the City shall report a set dollar amount equal to the nine percent (9%) “employee contribution” to the California Public Employees’ Retirement System as compensation earnable. Said contributions will be paid on holiday pay received by eligible employees. (ARTICLE 18 RETIREMENT BENEFITS, Section 18.02 PERS Pickup Reported as “Compensation Earnable”)
  8. Include Optional PERS Contract Provisions –
    A. The City shall provide “Level 4” 1959 Survivors Benefits.
    B. As soon as practicable, the City shall modify its PERS contract to provide for the Government Code section 21548 PRE-RETIREMENT OPTION 2W DEATH BENEFIT.
    C. The City shall provide the Single Highest Year formula.
    (ARTICLE 18 RETIREMENT BENEFITS, Section 18.03, Optional Contract Provisions)
  9. Minimum Service with City of El Segundo to Receive Retirement Benefits – Employees who retire must have been employed for a minimum of five (5) years with the City of El Segundo as a peace officer to receive the following benefits: pay for unused sick leave balance; the option of continuing to participate in the City’s group insurance programs; and the right to receive a contribution toward medical insurance for the retiree and 1 dependent. (ARTICLE 18 RETIREMENT BENEFITS, Section 18.04 Minimum Service with City of El Segundo to Receive Retirement Benefits)
  10. Retiree Health Insurance Contribution Program – The City will contribute to a retiree health insurance contribution program for retirees who participate in the Public Employees’ medical and Hospital Care Program. The program will provide for the following maximum contribution: The Average monthly dollar cost of the premium for an employee and 2 or more dependents for the HMO’s available to employees under PEMHCA. (ARTICLE 18 RETIREMENT BENEFITS, Section 18.05 Retiree Health Insurance Contribution Program)
  11. Longevity Pay – Police union members who have satisfactory performance appraisals are given additional “longevity” pay based on their number of years of service, in accordance with Salary Schedule 2. (Section 3.03 Longevity Achievement on Merit)
  12. Overtime Pay – Overtime hours are compensated at one and one-half times their regular rate of pay. (ARTICLE 7 OVERTIME COMPENSATION)
  13. On-Call Pay – Off duty police union members who are placed in on-call status for court during either the morning or afternoon session receive 3 hours of paid overtime, and 6 hours of paid overtime if placed in on-call status for court during both the morning and afternoon session. (Section 7.02 Court On-Call Pay)
  14. Call Backs – A minimum of 4 hours of work time at one and one-half the employee’s regular rate of pay is credited for all police union member call backs. (Section 7.03)
  15. Holiday Pay – Police union members who regularly work holidays are credited 120 hours (15 days) of paid holiday leave in their holiday bank. (ARTICLE 11 HOLIDAY PAY, Section 11.01)
  16. Spanish Pay – Police union members who speak Spanish (or another language designated by the Police Chief) fluently are paid premium compensation of $3,406.80 (Police Officer) or $4,267.92 (Sergeant) yearly ($283.90 or $355.66 monthly). (Section 8.04)
  17. Motorcycle Cleaning and Maintenance Pay – Police union members assigned to motorcycle duty are paid an additional $6,132.12 (Police Officer) or $7,682.28 (Sergeant) yearly stipend for off-duty time spent cleaning
    and maintaining their motorcycles ($511.01 or $640.19 monthly). (ARTICLE 8 DIFFERENTIAL PAY, Section 8.01)
  18. Uniform Cleaning Allowance – The City shall provide required uniforms and safety equipment to eligible employees. Employees eligible for a uniform cleaning allowance shall receive $715.00 per year. (ARTICLE 17 UNIFORM AND SAFETY EQUIPMENT ALLOWANCE, Section 17.01 Provision & Annual Allowance)
  19. $4,000 Interest-Free Computer Loan – All participants in the loan program will be eligible for an initial, interest free loan in the amount of $4,000 (four thousand dollars). (ARTICLE 20 COMPUTER LOAN PROGRAM, Section 20.01 Initial Loan)

The Police Managers union contract MOU No. ____ was approved at the April 7, 2009 El Segundo City Council meeting (Consent Agenda item E8), well after the 2008 recession started. Look at the agenda item (E8) in the Agenda Packet to see the MOU. It covers the Police Lieutenant and Police Captain ranks.

It provided an 18% raise for Police Lieutenants and a 23% raise for Police Captains during the Great Recession, in the form of four consecutive raises effective retroactively on July 1, 2008 and October 1, 2008, and also on October 1, 2009 and October 1, 2010. (ARTICLE 2 SALARY, Section 2.01 Base Salary, Agenda Packet page 75)

It included the following (and other) terms:

  1. A 4% salary increase for Police Lieutenants and Police Captains, retroactively effective July 1, 2008. (ARTICLE 2 SALARY, Section 2.01 Base Salary, Agenda Packet page 75, MOU page 3)
  2. A 9% salary increase for Police Captains and a 4% salary increase for Police Lieutenants, retroactively effective October 1, 2008. (ARTICLE 2 SALARY, Section 2.01 Base Salary, Agenda Packet page 75, MOU page 3)
  3. A 5% salary increase for Police Lieutenants and Police Captains, effective October 1, 2009. (ARTICLE 2 SALARY, Section 2.01 Base Salary, Agenda Packet page 75, MOU page 3)
  4. A 5% salary increase for Police Lieutenants and Police Captains, effective October 1, 2010. (ARTICLE 2 SALARY, Section 2.01 Base Salary, Agenda Packet page 75, MOU page 3)
  5. 3% @ 50 CalPERS Retirement Formula – The City has implemented the 3% at 50 PERS retirement formula for all affected employees. Thus, police union members can retire at age 50 with up to 90% of their single highest pay year as their annual pension for the rest of their lives (3% per year of service). (ARTICLE 22 RETIREMENT BENEFITS, Section 22.01 PERS Retirement Formula, Agenda Packet page 87, MOU page 15)
  6. City pays employee’s required nine percent (9%) CalPERS pension “Employee Contribution” and reports that amount of money to CalPERS as compensation earnable for pension credit as though it were employee income. (ARTICLE 22 RETIREMENT BENEFITS, Section 22.02 PERS Pickup Reported as “Compensation Earnable”, Agenda Packet page 87, MOU page 15)
  7. City pays the CalPERS pension “Employer Contribution” on the amount of the required nine percent (9%) CalPERS retirement “Employee Contribution” and reports such contribution as an item of special compensation. (ARTICLE 22 RETIREMENT BENEFITS, Section 22.03 Monetary Value of Employer-Paid Member Contributions (EPMC), Agenda Packet page 87, MOU page 15)
  8. City provides “Level 4” 1959 Survivors Benefits. (ARTICLE 22 RETIREMENT BENEFITS, Section 22.04 Optional Contract Provisions, Agenda Packet page 87, MOU page 15)
  9. City provides the Single Highest Year formula, i.e., the employee will have the 3% at 50 CalPERS pension benefit formula where the employee will receive an annual pension benefit of up to 90% of the Single Highest Year income (3% of the single highest year income per year of service) as early as age 50. (ARTICLE 22 RETIREMENT BENEFITS, Section 22.04 Optional Contract Provisions, Agenda Packet page 87, MOU page 15)
  10. City provides the Military Service credit as public service option. (ARTICLE 22 RETIREMENT BENEFITS,
    Section 22.04 Optional Contract Provisions, Agenda Packet page 87, MOU page 15)
  11. City started providing the additional PERS Section 21548, “Pre-Retirement Option 2W Death Benefit”

    . (ARTICLE 22 RETIREMENT BENEFITS, Section 22.04 Optional Contract Provisions, Agenda Packet page 87, MOU page 15)

  12. City will contribute to a retiree health insurance contribution program for retirees in the Public Employees’ Medical and Hospital Care Program. (ARTICLE 22 RETIREMENT BENEFITS, Section 22.05 Retiree Health Insurance Contribution Program, Agenda Packet page 88, MOU page 16)
  13. 457 Deferred Compensation Plan has been established as a benefit for employee participation. (ARTICLE 25 DEFERRED COMPENSATION, Section 25.01 Deferred Compensation Plan (457), Agenda Packet page 88, MOU page 16)
  14. 401a Deferred Compensation Plan (match up to 1% of total pay) – City will pay an amount equal to the employee’s contribution to deferred compensation up to a maximum of one percent (1%) of the employee’s total pay. (ARTICLE 25 DEFERRED COMPENSATION, Section 25.02 Deferred Compensation Plan (401a), Agenda Packet page 88, MOU page 16)
  15. Maximum future City contribution for medical insurance, for both active employees and retirees, is $1,800 per month. (ARTICLE 20 HEALTH BENEFITS, Section 20.02 City Medical Contribution, Agenda Packet page 86, MOU page 14)
  16. Executive Leave days increased from five to seven; 28 hours may be carried over and accumulated from year to year, not to exceed a cap of 84 hours, and not eligible for pay out upon retirement of separation of employment. (ARTICLE 10 EXECUTIVE LEAVE, Section 10.01 Entitlement, Agenda Packet page 80, MOU page 8)
  17. A maximum accrual of 80 hours of compensatory time may be accumulated. (ARTICLE 12 COMPENSATORY TIME, Section 12.01 Maximum Accrual, Agenda Packet page 81, MOU page 9)
  18. Captains get 12 specified dates off with pay as holidays, plus one personal leave/floating holiday. (ARTICLE 13 HOLIDAY LEAVE, Section 13.01 Holiday Leave — Captains, Section 13.02 Personal Leave/Floating Holiday — Captains, Agenda Packet page 81-82, MOU page 9-10)
  19. Lieutenants are paid for 104 hours in lieu of holiday pay once a year on or about December 10. (ARTICLE 13 HOLIDAY LEAVE, Section 13.03 Holiday Pay — Lieutenants, Agenda Packet page 82, MOU page 10)
  20. Vacation Days increased from a maximum number of 22 to 25 days (200 hours) per year, following completion of 14 years service.
    96 hours per year with full salary for first 5 years of continuous service with the City;
    120 hours per year with full salary after 5 years and until 10 years of continuous service;
    144 hours per year with full salary after 11 years and until the completion of 14 years of continuous service;
    200 hours per year with full salary after 14 years of continuous service.
    (ARTICLE 15 VACATION LEAVE, Section 15.02 Vacation Accrual Schedule, Agenda Packet page 84, MOU page 12)
  21. Vacation Accrual rate is based on total service time in a PERS or comparable agency after employees have successfully completed their initial probationary period and/or achieved E step placement in their assigned salary range. (ARTICLE 15 VACATION LEAVE, Section 15.03 Vacation Accrual Based on Total Service Time in a PERS or Comparable Agency, Agenda Packet page 84, MOU page 12)
  22. Payment in lieu of vacation time accrual – Employees may receive payment in lieu of accrued vacation time up to a maximum of one hundred percent (100%) the annual accrual to which they are entitled by length of service, after completing one (1) year of service. (ARTICLE 15 VACATION LEAVE, Section 15.04 Vacation Time Accrual — Payment in Lieu Of, Agenda Packet page 84, MOU page 12)
  23. Affected employees shall accumulate sick leave at the rate of one (1) eight (8) hour day accumulation for each month’s service not to exceed a maximum of 1056 hours (132 days). Hours worked in addition to a regular work week shall not entitle an employee to additional sick leave accumulation. (ARTICLE 14 SICK LEAVE, Section 14.01 Sick Leave — Leave with Pay due to Illness, Agenda Packet page 82, MOU page 10)
  24. Effective the first day of December of each year, affected employees who maintain a balance of 1056 hours (132 days) of sick leave accrual shall be paid for seventy-five percent (75%) of the sick leave accumulated and not used during the preceding twelve-month period. Payment shall be paid at the affected employee’s regular rate of pay and be paid on or before December 10. (ARTICLE 14 SICK LEAVE, Section 14.03 Sick Leave — Payment of Seventy-Five Percent (75%) of Accrual, Agenda Packet page 82, MOU page 10)
  25. Affected employees who separate employment prior to the first day of December while maintaining a balance of more than 1056 hours (132 days) of sick leave shall be paid for seventy-five percent (75%) of their unused accrued sick leave accumulated since the preceding December 1. Payment shall be paid at the affected employee’s regular rate of pay. (ARTICLE 14 SICK LEAVE, Section 14.04 Sick Leave Accrued — Payment on Separation Prior to December 1, Agenda Packet page 83, MOU page 11)
  26. Upon separation from service because of a disability retirement, affected employees with five (5) years of City service will be compensated for one-hundred percent (100%) of the affected employee’s accumulated unused sick leave at the affected employee’s regular rate of pay at separation. (ARTICLE 14 SICK LEAVE, Section 14.05 Payment of Sick Leave Accrual — Disability Retirement, Agenda Packet page 83, MOU page 11)
  27. Payment of sick leave accrual is 100% after 20 years of service – Upon separation from service, affected employees with (20) years of City service will be compensated for one-hundred percent (100%) of the employee’s accumulated, unused sick leave at the affected employee’s regular rate of pay at separation. (ARTICLE 14 SICK LEAVE, Section 14.06 Payment of Sick Leave Accrual — After 20 Years of City Service, Agenda Packet page 83, MOU page 11)
  28. “Regular rate of pay” (base pay rate) is defined as the hourly rate, including all remunerations paid to or on behalf of the employee, including Educational Incentive Pay and the City paid nine-percent (9%) CalPERS pension Employer Paid Member Contribution. (ARTICLE 2 SALARY, Section 2.02 Regular Rate of pay Defined, Agenda Packet page 76, MOU page 4)
  29. Overtime Pay is paid at one and a half times their “regular rate of pay” for Police Lieutenants and at their “regular rate of pay” for Police Lieutenants. Thus, overtime pay for Lieutenants includes one and a half times the Educational Incentive Pay and the City paid nine-percent (9%) CalPERS pension Employer Paid Member Contribution. (ARTICLE 7 OVERTIME COMPENSATION, Section 7.01 Pay for Shift Schedule, Agenda Packet page 78, MOU page 6)
  30. Educational Incentive Compensation – of $10,373.22 yearly ($398.97 per (bi-weekly) pay period) for Police Lieutenants holding any Master’s Degree, and $11,736.40 yearly ($451.40 per (bi-weekly) pay period) for Police Captains holding any Master’s Degree, effective retroactively back to July 1, 2008. Educational Incentive Pay qualifies as compensation earnable (counts towards the employee’s CalPERS pension benefit) pursuant to Section 20636 of the California Government Code and Section 571(a)(I) of the California Code of Regulations. (ARTICLE 3 EDUCATIONAL INCENTIVE PAY, Section 3.01 Educational Incentive Pay, Agenda Packet pages 76-77, MOU pages 4-5)
  31. 100% Tuition and Books Reimbursement for undergraduate studies in pursuit of an Associate’s or a Bachelor’s Degree at any accredited college or university having its campus in the State of California, for classes approved pre-enrollment by the Chief of Police or his/her designee, and in which the employee attains a grade of “C” or better (or a “pass” grade where classes are taken “pass/fail”). (ARTICLE 4 TUITION AND BOOK REIMBURSEMENT PROGRAM, Section 4.02 Undergraduate Studies (Studies undertaken in pursuit of an Associate’s or a Bachelor’s degree), Agenda Packet page 77, MOU page 5)
  32. 100% Tuition and Books Reimbursement for post-graduate studies at the University of California or California State University (80% reimbursement for studies at other accredited institutions), for classes approved pre-enrollment by the Chief of Police or his/her designee, and in which the employee attains a grade of “C” or better (or a “pass” grade where classes are taken “pass/fail”). (ARTICLE 4 TUITION AND BOOK REIMBURSEMENT PROGRAM, Section 4.03 Post-Graduate Studies (Post-Graduate studies are defined as those undertaken in pursuit of a degree beyond a Bachelor’s), Agenda Packet page 77, MOU page 5)
  33. Uniform Allowance – $53 per month of active duty for patrol lieutenants, $40 per month of active duty for non-patrol lieutenants and captains. The Uniform Allowance qualifies as compensation earnable towards the CalPERS pension benefit pursuant to California Government Code Section 20636 and California Code of Regulations Section 571(a)(1). (ARTICLE 21 UNIFORMS AND SAFETY EQUIPMENT, Section 21.02 Uniform Allowance, Agenda Packet page 87, MOU page 15)
  34. Physical fitness assessment is voluntary. (ARTICLE 8 PHYSICAL FITNESS INCENTIVE PROGRAM, Section 8.03 Program Components, B. Fitness Assessment, Agenda Packet page 79, MOU page 7)
  35. Physical Fitness Incentive Program Pay per quarter of 16 hours (“Excellent” condition), 8 hours (“Good” condition), and 4 hours (“Fair” condition), where the pay qualifies as compensation earnable towards CalPERS pension benefit credit pursuant to California Government Code Section 20636 and California Code of Regulations Section 571(a)(1). (ARTICLE 8 PHYSICAL FITNESS INCENTIVE PROGRAM, Section 8.04 Physical Fitness Incentive Program Pay, Agenda Packet page 80, MOU page 8)
  36. Fully paid annual comprehensive medical exam.
  37. Fully paid dental, optical, and life insurance premiums for the employee and eligible dependents. The City shall make available any city-wide improvements to the dental benefit, to the Association. (ARTICLE 20 HEALTH BENEFITS, Section 20.03 Optical, Dental, and Life Insurance, Agenda Packet page 86, MOU page 14)
  38. $4,000 Interest-Free Three (3) Year Computer Loan to purchase personal computer hardware and software. (ARTICLE 24 COMPUTER LOAN PROGRAM, Section 24.01 Initial Loan, Agenda Packet page 88, MOU page 16)
  39. Employee layoffs are based on seniority, and not on job performance unless there is a tie in seniority (same hire date), making it difficult to improve the employee staff during layoffs by laying off incompetent and dishonest employees first.

    A permanent employee in a classification affected by a reduction in force shall be laid off based on seniority in City service that is the employee with the least service shall be laid off first, followed by the employee with the second lease City service, etc. Seniority shall be determined by hire date. City seniority shall be used to effectuate the procedures set forth in this Article. Seniority for part-time employees shall be calculated as one-half (1/2) time from the date of hire with the City. (ARTICLE 27 LAYOFF PROCEDURES, Section 27.04 Procedures for Layoff, Agenda Packet page 90, MOU page 18)

  40. Ties in layoffs between employees with same hire date (equal seniority) are broken based on job performance.

    In cases where two (2) or more employees have the same date of hire (i.e. equal seniority), retention points for job performance shall be credited on the basis of the average of the overall evaluation for the last three (3) years, provided the last rating had been filed more than (30) days prior to the date of the layoff notice. Retention points are as follows:

    Exceeds Standard – 24 points
    Meets Standard – 12 points
    Below Standard – 0 points

    In the event of a tie in seniority, the employee with the lowest average of retention points shall be laid off first. In the event that one or more of the affected employees do not have overall evaluation ratings for the last three (3) years on file, ties shall be broken by a coin toss.
    (ARTICLE 27 LAYOFF PROCEDURES, Section 27.05 Breaking Ties, Agenda Packet page 90, MOU page 18)

  41. Assignment of employees to lower vacant positions in lieu of layoff will be based on seniority and not on job performance, unless there is a tie in seniority (same hire date).

    An employee designated for layoff as a result of abolition of a position or classification may be offered appointment to a vacant position in a lower classification, if the employee is qualified by education and/or experience for such position. If there is more than one qualified employee to be offered such appointment(s), the offer(s) shall be based on seniority, etc. If the employees have the same seniority, then the procedure for breaking ties set forth above shall apply. An employee accepting such appointment shall be placed on the step for the lower classification most closely corresponding, but in no case higher, than the salary step of his/her previously held position, and the employee will be assigned a new salary anniversary date on the effective date of the appointment. (ARTICLE 27 LAYOFF PROCEDURES, Section 27.06 Reduction to a Vacant Position, Agenda Packet page 90, MOU page 18)

  42. Displacement (Bumping) Rights based on seniority, not job performance –

    A. An employee designated for layoff as a result of abolition of a position or classification may displace (“bump”) an employee in a lower classification in which the employee has prior service, provided the laid off employee has greater seniority than the employee in the lower classification.

    B. An employee designated for layoff with greater seniority may displace (“bump”) a less senior employee in a lower classification, for which he/she is immediately qualified to perform.

    (ARTICLE 27 LAYOFF PROCEDURES, Section 27.07 Displacement Rights, Agenda Packet page 90, MOU page 18)

Here is the City Council Meeting Agenda Packet staff report, with annotations by Mike Robbins from the Public Safety Project shown within parenthesis and in (bold italic type).

April 7, 2009 El Segundo City Council Meeting

Consent Agenda item E8:

( Agenda Packet PDF file and stamped page numbers 65 to 66: )

EL SEGUNDO CITY COUNCIL                             MEETING DATE: April 7, 2009
AGENDA STATEMENT                             AGENDA HEADING: Consent Agenda

AGENDA DESCRIPTION

Consideration and possible action regarding approval of a comprehensive three-year Memorandum of Understanding (Labor Agreement) between the city of El Segundo and the El Segundo Police Managers’ Association. (Fiscal Impact: $161,810 salary and benefit increases; plus $68,881 to resolve salary compaction in the Police Department, for a grand total of $230,691.)

RECOMMENDED COUNCIL ACTION:

  1. Approve the Comprehensive Memorandum of Understanding.
  2. Authorize the Mayor to execute the Memorandum of Understanding in a form approved by the City Attorney.
  3. Alternatively, discuss and take other action related to this item.

ATTACHED SUPPORTING DOCUMENTS:

  1. Comprehensive Memorandum of Understanding.

FISCAL IMPACT: ($230,691)

      Amount Budgeted: $161,810
      Additional Appropriation: $68,881
      Account Number(s):

ORIGINATED BY: Bob Hyland, Director of Human Resources
REVIEWED BY: Bill Crowe, Assistant City Manager
APPROVED BY: Jack Wayt, City Manager

BACKGROUND AND DISCUSSION:

In July 2008, staff and representatives of the El Segundo Police Managers’ Association began meeting and conferring, pursuant to Sections 3500 et. seq. of the California Government Code, for the purposes of obtaining a labor agreement. Agreement was reached during the second week of December, 2008. On December 16, 2008, Council approved an Agreement between the city and the Association and adopted a Resolution approving the Memorandum of Understanding.

Council’s action approved the changes in the terms and conditions of employment detailed in the Agreement, with the understanding that those changes shall then be incorporated into a Comprehensive Memorandum of Understanding which in itself would then be presented to the Council for approval.

The Agreement contains the following major provisions:

  1. Three-year term, commencing on July 1, 2008 and ending on September 30, 2011.
  2. A 4% salary increase for Police Lieutenants and Police Captains, effective (retroactively back to) July 5, 2008.
  3. In order to address salary compaction issues between Management Job Classifications and Bargaining Unit Job Classifications, the following salary increases establish 5% compensation differentials between supervisors and subordinates:

    • Lieutenant, 4% salary increase, effective (retroactively back to) October 1, 2008; and
    • Police Captain, 9% salary increase, effective (retroactively back to) October 1, 2008.
  4. Effective 10/1/2009 and 10/1/2010, an (5%) increase in compensation reportable to the Public Employment Retirement System (PERS) equivalent to that received by the El Segundo Police Officers Association. (NOTE: This agenda packet staff report omitted the 5%, concealing these two 5% raises and the total raise in this agenda item description. It was necessary to read the MOU to find this information.)
  5. An increase in additional pay from $800 per month to $1,200. This compensation is used principally for the purchase of PERS medical insurance, was last increased July, 2003 and will be equivalent to that received by the City’s unrepresented Management-Confidential Employees.
  6. Effective 10/1/2009 and 10/1/2010, an (TBD%) increase in additional pay reportable to PERS equivalent to that received by Management-Confidential Employees. (NOTE: This agenda packet staff report omitted the TBD%, concealing these two TBD% raises and the total raise in this agenda item description. It was necessary to read the MOU to find this information.)
  7. Conversion of 8% Masters Degree pay to an equivalent flat dollar amount.
  8. Provision that the maximum future City contribution for medical insurance, for both active employees and retirees, shall be $1,800 per month.
  9. Acceptance of the revised City of El Segundo Substance Abuse Policy and Drug-Free Workplace Statement, dated July 1, 2008.
  10. Amendment to the City’s contract with PERS to provide Section 21548, “Pre-Retirement Option 2W Death Benefit.”
  11. An increase in Executive Leave days from five to seven.
  12. An increase in the maximum number of Vacation Days, following completion of 14 years service, from 22 days to 25 per year.
  13. Physical fitness assessment is voluntary.
  14. An agreement between the City and the Association to amend the Memorandum of Understanding to contain all rules, regulations, policies and procedures currently in effect that relate wages, hours, benefits and working conditions.

December 2, 2008 El Segundo City Council Resolution-Management Raises (0.98 MB PDF file)

The City Council resolution providing Executive Management, Mid-Management/Confidential, and Public Safety Management city employee raises and benefits increases was approved at the December 2, 2008 El Segundo City Council meeting (Consent Agenda item E8), well after the 2008 Great Recession started. Look at the agenda item (E8) in the Agenda Packet to see the Resolution approving the raises. It covers the Battalion Chief, Deputy Fire Chief, Fire Chief, and Police Chief ranks, which are all management ranks).

It provided substantial raises to prevent salary compaction between management employees and their subordinate union member employees who received large pay increases. Thus, large union employee raises are used as justification for large management employee raises.

It included the following (and other) terms:

  1. Salary Compaction (Compression) in the Police and Fire Departments


    In order to address salary compaction (compression) issues between management job classifications and (labor union) bargaining unit job classifications, the following salary increases establish 5% compensation differentials
    between supervisors and subordinates    , and result in the Police chief and Fire Chief being assigned to the same salary range. Salary Compaction Pay Adjustments, with the exception of the Fire Chief, effective July 1, 2008, will be effective October 1, 2008. The percentage increases listed below include the 4% salary increase provided to all Management/Confidential Employees.

    1. An increase of 16.9% to the Salary Range for Battalion Chief (Salary Range 60f).
    2. An increase of 14.9% to the Salary Range for Deputy Fire Chief (Salary Range 69f).
    3. An increase of 32.3% to the Salary Range for Fire Chief (Salary Range 70f).
    4. An increase of 23% to the Salary Range for Police Chief (Salary Range 60p).

      PAY – LEAVE PAYOUT – PENSION SPIKE:

      Police Chief David Cummings received a 23% pay increase effective October 1, 2008, which spiked his pay, his vacation and sick leave payout (cash-out) value (for his vacation and sick leave hours which were accrued, accumulated, and rolled-over from year to year), and his pension. His total 2009 earnings was $425,775 – consisting of $225,627 Regular Earnings, $480 Special Compensation, and $199,668 Leave Payout. He retired in 2009 with a pension of $210,213.36 yearly ($17,517.78 monthly) according to CaliforniaPensionReform.com, plus medical insurance, for the rest of his life.

      The reason given for his 23% pay increase that spiked his pay, leave payout, and pension was salary compaction, also known as salary compression, caused by (large) pay increases given to the police union members.

  2. Amendment to the City’s contract with the California Public Employees Retirement System (PERS) to provide Section 21548 (Pre-Retirement Option 2W Death Benefit) for the Police Chief, Fire Chief, Deputy Fire Chief and Battalion Chiefs. This benefit provides the Retirement-Eligible Employees’ spouse a monthly allowance equal to the highest possible allowance the employee would have been eligible to receive at the time of their death. This benefit has been available to the City’s civilian, non-safety employees since April, 2008.
  3. A 4.0% salary increase for all Executive Management, Mid-Management/Confidential Employees, with the exception of the City Manager, effective 7/5/2008.

    For reference purposes, the Consumer Price Index (CPI-U) for the Los Angeles-Riverside-Orange County area averaged 3.52% for the twelve month period from July 2007 – June 2008.

  4. An increase in additional pay from $1,000 per month to $1,200 per month. This compensation is used principally for the purchase of PERS Medical Insurance and was last increased in July, 2004, from $900 to $1,000.
  5. An increase in Executive Leave Days for Department Head Employees, from eight days to ten days per year.
  6. An increase in Executive Leave Days for Mid-Management/Confidential Employees from five days to seven days per year.
  7. An increase in the maximum number of Vacation Days, following completion of 14 years service, from 22 days to 25 days per year.
  8. Updated language regarding Jury Duty Service, providing for two weeks paid Jury Duty Service, and a variety of new Administrative Procedures.
  9. Provision that the maximum future City contribution for medical insurance, for both active employees and retirees, shall be $1,800 per month.

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