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Meet and Confer Minutes - 08/28/2009 MEET AND CONFER CITY OF WICHITA FALLS & WICHITA FALLS POLICE OFFICERS' ASSOCIATION AUGUST 28, 2009 PRESENT: Darron Leiker, City Manager § Dennis Bachman, Chief of Police § Matt Benoit, Assistant City Manager § Jim Dockery, Assistant City Manager/CFO § City Administration Tammy Guerra, Director of Civil Service § Gerald Todd, Deputy Police Chief § Julia Vasquez, First Assistant City Attorney § Linda Merrill, Recording Secretary § Glenn Barham § City Council Michael Smith § Dale Rosdahl § Wichita Falls Buddy Alexander § Police Officers' Association Mike Wheat § Dwight Tiller, Sr. Field Representative § CLEAT 1. Called to Order. Darron Leiker called the meeting to order at 10:04. 1. TMRS. Mike Wheat stated this is the third meet and confer meeting. The first meeting, in March 2008, involved economic issues, such as assignment pay, shift differential, salary increases, and 20-year retirement. The topics of the July 2008 meeting were non- economic issues, such as association leave time and dues level changes. 20-Year Retirement Due to the economic situation, the Association chose to again discuss 20-year retirement. It is the largest proposal, but they hope for a phase-in. When this matter was first discussed, it was not clear how GASB was going to affect the City and the amount of the actual increases. That amount is now known. 2 He understands that the City has inquired with TMRS what it would take to phase in a 20-year retirement, and was given a couple of options. Those were favorable except for the GASB, and the amount of money necessary to catch that up. The phase-in would be accelerated if any benefit changes were made at this point. The Association is curious to see if the City is interested in raising benefits over the next eight years. Jim Dockery said two options were discussed: one involving 20-year retirement, and the other, shorter vesting time. He does not recall the numbers, but either option would increase the contribution percentage. The City would lose the eight-year phase-in. The purpose of the eight-year phase-in was to allow cities to lessen the pain over a period of time. If a city increases benefits, it loses the ability to take advantage of that phase-in. That would result in a significant cost to the City, which is already spending $300,000 above the prior year's contribution for the next six years. Mr. Leiker added that if the City had the funds, it might be something to pursue. But it will be doing good over the next few years to keep the benefits currently offered. Civil service employees get better benefits than do non-civil service employees, with a 7% contribution, and 2-to-1 match from the City. The City kicks in 14% for civil service, but only 10% for non-civil service employees. Staff wanted to find parity, but there is simply no funding available. This year, they are trying to maintain benefits. Unfortunately, there is not even room for a pay raise. Mr. Wheat said the Association is hoping today to open up a discussion on this proposal, and hoped to get City administration to agree to set up a plan to improve benefits in 7-8 years. By then, liability would have diminished because the City would have caught up on its payments. Mr. Leiker replied that a lot can happen during that time, but it can always be reviewed. Any action would depend upon the priorities of the City at that time. He will not commit beyond that. Buddy Alexander said this change in retirement would not benefit solely the Wichita Falls Police Officers Association. The City would reap benefits, as well. Military members retiring from Sheppard Air Force Base after 20 years of service will need another career, and would find working for the WFPD for 20 years and then retiring an attractive career choice. Mr. Leiker did not deny there could be a positive community impact, but it would have to be counterbalanced with a tax increase to fund it. Mr. Alexander said the department loses potential officers because the City does not offer perks that other cities offer. Mr. Leiker asked if they would be willing to consider a change in contribution from 7% back to 5%, giving up COLA, or Updated Service Credits, to offset some of the cost of offering the 20-year retirement. Mr. Alexander said that would have to be put before the members. Mr. Wheat said both sides need to get to a point in these discussions to decide what could or could not be done to offset those costs. He has data from 2007 and from today. Wichita Falls is still one of only three cities in Texas over 100,000 in population that still requires 25 year retirement; 10-year vesting (instead of five), and the only city that still 3 only provided 50% service credits. The benefit package is as important to employees as the quality of life is to citizens. He asked how can the Association assist to make this issue a goal for the future. Mr. Leiker said he would have to play it by ear. This budget year is tough, and the next two years will be a lot tougher. Mr. Wheat asked if it will be possible to continue to discuss this item at each future meeting. Mr. Leiker said that the reality is this will be an issue every year with the budget. He will continue to have to budget $300,000 plus throughout the eight-year phase-in. He does agree that benefits, chiefly retirement, are important for retention and recruitment. Mr. Wheat asked if the City would be interested to make the change. Mr. Leiker responded that it would depend upon the City's priorities. He will commit that it will be looked at. Mr. Dockery said the City recognizes that its TMRS benefits, compared with peer cities, are not as rich. But the budget is a problem this year. The new actuarial rules adopted by TMRS punished the member cities, as far as contribution percentages. It would be nice, but it is a matter of money, and it is not there. Mr. Wheat asked how this affects the City; does it experience a loss in candidates? Mr. Dockery said no, not in the current economic climate. Mr. Leiker added that the City has fewer open positions today than it has had in many years. This is mainly due to the economy. Government jobs are now attractive. Private sector employers have reduced 401k matches. Police academies are offered as quickly as possible in order to keep spots filled. He thinks the department is in good shape. Chief Bachman agreed, adding that the department is short four personnel. He hopes to get some approved next week, and is taking applications now for the next academy. Mr. Dockery said a lot of cities are struggling to keep their benefits, and may find they have to come down in some of their provisions. Contribution percentages are upwards of 20% of payroll for some cities, once they get eight-year phase-in. Mr. Leiker said staff does not try to hide the fact that Wichita Falls ranks low regarding TMRS. In at last two strategic planning sessions, and other times, it has demonstrated to the City Council where it ranks in vesting, retirement years, and Updated Service Credits. Chief Bachman said the police department received a $130,000 grant from the federal government this year, plus another $30,000 grant, and revenue from seized funds. That money went to supplement the budget. The budget was tight to begin with, and he had to go back and cut $300,000. He does not anticipate receiving a $130,000 grant again next year; that same grant was only $15,000 the year before. Mr. Leiker is recommending to the Council this Tuesday that it accept a COPS grant. The $760,000 grant involves hiring four officers to do community policing for three years. The caveat is that the grant only pays this year's base salary. If any raises are 4 given, that is the City's responsibility. In year four, the City funding commitment is one- third of the grant total, or approximately $253,000. Mr. Wheat said they know the economy is challenging, but they want to put a spotlight on what can be done in the future, so that progress can be made at some point. Compensatory Time Mr. Wheat said the next proposal is a suggestion to increase the number of comp times hours that can be accrued and banked from 24 hours to 40 hours. Quite a few other cities allow more comp time to be accrued and banked than does Wichita Falls. Mr. Leiker said this request has a cost element to it. If an officer works overtime, he is paid at his current salary at time and a half. But if the officer banks that time, he can keep it until he retires, and be paid at a future salary that is greater than his salary at the time he accrued those hours. Mr. Wheat said that most officers would use the time if they have it accrued. He sees very minimal economic impact, if any. Mr. Leiker said he would not mind taking a look at this issue, and checking with other cities. Dale Rosdahl said it would be nice to have those additional hours for family events, such as birthday parties, when an officer might not have the need to take an entire four- hour block of vacation. Mr. Leiker said the vacation hours were changed to hour increments to allow for such flexibility. Mr. Wheat said it is a mental factor for the officer, to know that he has more time available to take off if needed. The officer is going to be compensated for the overtime in one way or another. Mr. Leiker said he would rather pay that liability at a lower rate, than to pay it at a higher rate upon that officer's retirement. The City writes large checks upon officers' retirements for unused vacation and sick leave. He will look into this matter and get back to the Association. Dues Level Changes Mr. Wheat brought up an item discussed at the July 30 meeting, the ability to establish three levels of Association dues within the City's payroll system. Mr. Leiker said he would support having the three levels, upon conditions. He does not want officers to bounce monthly between levels. They would be allowed to make a choice on an annual basis. Obviously, if an officer quit, or one was hired, they could drop and start memberships at any time. In addition, if an officer wanted out of the Association, he would be allowed to discontinue his dues payment. Otherwise, they would make an election annually, at the same time all employees make election regarding their 5 insurance and employee benefits coverage. Tammy Guerra said that open enrollment occurs through the month of October for changes effective January 1 . Mr. Leiker told the Association to get details on pricing and membership levels, and work with Jim Dockery to make it happen. Association Business Leave Mr. Wheat said Association officers often go to various meetings and conventions on behalf of the Association, and use their own vacation or administrative time to do so. Most comparable cities have "Association Business Leave." Once a year, Association members voluntarily choose to bank 3-4 hours per member. Association officers are allowed to pull from that bank the hours necessary to attend Association-related functions. They asked that the same program be implemented in the WFPD. A list of approved Association officers would be updated annually. The Board members who would be eligible to use these banked hours would be updated annually. Mr. Leiker said he disagrees with this proposal. Association activities are voluntary, and there is a cost element to this issue. If the City gives hours to this bank, it is adding to the cost of those benefits. The Board member would no longer have to use his own personal time to attend a conference. He might be willing to look at a donation of time from Association members, but he's not even sure he'd look at that. Mr. Wheat said he did not make himself clear, because that is the proposal. Mr. Alexander said, as an example, that each year, he could decide as an Association member if he wants to donate four hours of his vacation to the Wichita Falls Police Officers Association. Mr. Leiker said he would ordinarily lose that time, so how is that a donation? Mr. Wheat said he would use that vacation time, unless he gave it to the Association bank. Then an Association Board member would use it. Mr. Leiker said the officers are capped at a maximum accrual of vacation. How is it really a loss to the officer if they would lose that time, anyway? He asked the Association's opinion on setting up such a bank based on the donations from officers who donate unused vacation at the time of retirement. Mr. Wheat said it would be hard to budget those hours, as opposed to receiving a certain amount of hours at the beginning of the year from those Association members who choose to donate time. Mr. Leiker said staff can take a look at this request. However, if it is shown to cost the City money, he is not interested. Mr. Alexander said the first year or two would be a trial period. They are not looking for a bank of 2,000 hours, but simply enough time to cover their Association trips. Mr. Leiker said the Board would probably end up going on more trips since it would be paid for, versus a personal sacrifice. Mr. Alexander said they generally miss only two conferences a year. Mr. Leiker said the Board, then, is currently able to attend most functions with the existing leave policy. Mr. Alexander said it involves personal sacrifice, 6 to which Mr. Leiker replied that he understands that, as it is a voluntary function. Mr. Alexander added that everything they do involves personal sacrifice, for the betterment of the officers and the department. Mr. Wheat said the bank of hours would never be paid to anyone. Mr. Leiker said he did not see it that way. There is a good example with the Emergency Sick Leave bank. Employees who bump up against the maximum accrual rate will donate to the sick leave bank. It costs money; it is not free. The employees with only 50 hours vacation on the books do not donate. Mr. Dockery echoed Mr. Leiker's earlier statement by saying that attending the various conferences is not required by the City, and it would cost the City money to establish this leave bank. Mr. Wheat asked if they brought in numbers from other cities that would show liability, or no liability, could this continue under discussion. Mr. Leiker said it could always be looked at in the future, but it is getting to be a philosophical difference. He views attendance at these various meetings as voluntary. Mr. Wheat asked, then, would it matter what the economic result is, if there is a philosophical difference? Mr. Leiker said he is open-minded enough to look at data from other cities. Chief Bachman interjected that even if such a bank were to be established, there is no guarantee the Board members will be granted the time off. Mr. Rosdahl said they've always known that. Mr. Leiker said minimum staffing requirements would have to be met. Unfinished Business Mr. Leiker reminded Mr. Rosdahl that he was to bring in some information from another city regarding sick leave conversion. He said it does not need to be discussed today, but Mr. Rosdahl can get the information and either present it at a future meeting or drop it by his office. Fuel Conservation Update Mr. Leiker noted that there was discussion at the last meeting regarding the fuel conservation committee. It was in its early stages then, but the City has now had a year under its belt under the new policy. It is working pretty well, and staff is seeing some savings. Modifications were made to the IAV policy. He asked the Chief and the Association if there were any problems. Mr. Wheat asked for confirmation that families are not allowed in the vehicle. Chief Bachman said the vehicle is for City business. It is not to be used to transport the family to the grocery store. An officer can drive off-duty out of uniform to 7 go to an off-duty job or to the training center. Of course, an emergency involving a family member is an exception to this policy. Mr. Leiker said there was discussion last year about discontinuing the program. But the current policy should be in place for a while, although he cannot speak for what may happen years out. This is a benefit to the officer, and recruiters tout it as a good benefit. Mr. Rosdahl agreed that it is a large draw. Mr. Leiker said it allows for an increased community presence, and quicker response time. Chief Bachman said a memo has been distributed regarding the use of lAVs. It is not in the server yet, however. There is a committee revising the General Orders. He asked that the Association ask the members to contact the committee if they see any changes that should be made. Mr. Leiker asked the Association for its understanding of the tough times the City is experiencing right now. He did not look forward to recommending no pay increase, and a tax increase, to the City Council. He hopes to work in a pay raise next year, either through the step plan, or a cost of living increase. A lot of peer cities are in the same boat, so the gap is not growing. His priority this year was to preserve health insurance benefits and TMRS. The budget will be adopted September 15; the feedback he has received from the Council makes him feel those areas are safe. The City supports and will fight for its employees in that area in the future. Longevity was on the table for a while as an area of possible cuts. He gave the Council three budget options a few weeks ago. His third and least favorite included no tax increase, but cuts in benefits. Mr. Wheat asked if the tax increase will ensure the preservation of longevity. Mr. Leiker said he thinks it will, provided the Council adopts his proposed budget. He is proposing a one cent tax increase, and no step or cost of living increase. Health insurance rates were studied at a recent EBT meeting. The City will be able to hold the line on employee rates next year. The budget does include an increase in the City's contribution for health insurance. There is no plan to change the design of the main health insurance program or to cut benefits. He asked that the Association and officers give administration any ideas they may have to make the City more efficient, or to save the City money. Mr. Wheat said he believes the City will see some savings when terminals are in patrol cars. Mr. Leiker said he hoped so. Next week, there will be limited deployment of vehicles with installed terminals. Completion of that project should occur in 13 weeks. The meeting adjourned at 10:51 a.m.