Vallejo Employee Contract Terms

81% of Vallejo’s General Fund expenditures are for salaries and benefits.  The City is currently renegotiating these contracts but they most likely won’t be approved by the City Council until after the 2013 election and the new Council is seated.  The current contracts were negotiated after filing for bankruptcy in May 2008.  The Police (VPOA) and Confidential, Administrative, Managerial and Professional (CAMP) contracts were negotiated first and had significantly better pay and benefits than the Fire (IAFF) and Miscellaneous (IBEW) contracts that were negotiated later.  The contract dates and the council votes were as follows:

 

Bargaining Unit

Police - VPOA

Admin - CAMP

Fire - IAFF

Misc. - IBEW

Date Approved

1/28/09

2/10/09

3/23/10

11/30/10

Contract Term ends

6/30/12

6/30/13

6/30/12

12/31/12

Council Vote

5 to 2

5 to 2

4 to 3

7 to 0

Voting in Favor

Davis, Hannignan Wilson, Sunga, Bartee

Davis, Hannigan, Wilson, Sunga, Bartee

Davis, Hannigan,  Wilson, Sunga

All in favor

Voting Against

Gomes, Schivley

Gomes, Schivley

Gomes, Schivley, Brown

None

 

The VPOA contract was the most generous and was approved early to remove the VPOA objection to the bankruptcy filing.  It provided for pay increases on 7/1/10 and 7/1/11 and continued the benefit programs in place including 100% payment of medical insurance premiums for active and retired employees ($17,752 a year for family coverage) and the continuation of longevity pay of 5% at 20 years and 10% at 25 years.  It also provided for a separate $1 million payment ($333,333 a year starting 7/1/12) for breaching existing contracts and to pay a portion of the accumulated vacation and sick pay that was withheld when a large group of police officers retired prior to the city filing for bankruptcy.

The CAMP contract provided for 2% raises on 7/1/10 and 7/1/11 but these raises were offset by unpaid furlough days during those years.  Other benefits remained mainly intact except that longevity pay was cut in half for new employees; sick pay was increased from 96 hours to 144 hours but the cash out on retirement was eliminated and health insurance premiums for new employees and retirees are paid at 80% rather than 100%. 

The IAFF contract had significant reductions – a 2% pay reduction on 9/1/09, no increases on 7/1/10 or 7/1/11; elimination of longevity pay; PERS pensions for new employees set at 2.7% @57 vs. 3% @ 50 for existing employees; the employee contribution to PERS increased from 9% to 13.4%; health insurance premiums paid by the city reduced from 100% to 75% and health insurance premiums for retirees reduced from 100% to $300 a month.

The IBEW contract had the most severe reductions – 5% pay reductions on 7/1/09 and again on 7/1/10 with no increases on 7/1/11 or 7/1/12 except for a few hard to fill positions.  PERS pensions for new employees reduced to 2% @ 62 from 2.7% @ 55.  Health insurance premiums paid by the city set at 75% and retiree health insurance set at $300 a month.

Vallejo’s unfunded pension liability at 6/30/11 was $91 million for public safety and 55 million for all other employees.  The new employee contracts made modifications for new employees, but the existing programs remain in place for current employees.  The city contribution to the PERS pension plan is now 49.3% of salary for police, 44.9% for fire and 28.3% for IBEW.  Employee contributions to PERS were increased for IAFF but not for police.  The unfunded pension liability is still a major issue to be resolved.

 

Major provisions of the contracts.

 

Vallejo Pay and Benefit Summary - partial list (not a legal document – refer to actual contract for specifics)

VPOA to 6/30/12

IAFF to 6/30/12

CAMP to 6/30/13

IBEW to 12/31/12

 

 

 

 

 

Salary increase

 

 

 

 

  7/1/09

0

-2.0%

0

-5.0%

  7/1/10

6.29%

0

2%

-5.0%

  7/1/11

1.3% est.

0

2%

0

  7/1/12

To be negotiated

To be negotiated

2% to 4%

0

Unpaid furlough

 

 

 

 

  7/1/10

0

0

2.3%

8 hours

  7/1/11

0

0

2.0%

16 hours

PERS Pension

3% @ 50

3% @ 50

2.7% @ 55

2.7% @ 55

  Employee contribution

9.0%

13.4%

9.0%

9%

  New employees

3% @ 50

2.7% @ 57

2.7% @ 55

2% @ 62

Social Security Coverage

No

No

Yes

Yes

Medicare Coverage

Yes

Yes

Yes

Yes

Health Insurance paid by city

100%

75%

100%

75%

  Hired after 2009

100%

75%

  80%

75%

  Retirees

100%

$300 month

  80%

$300 month

Longevity Pay

 

 

 

 

  20 through 24 years service

 5%

0

5%

0

  25 + years service

10%

0

10%

0

  Hire after 2009

 

 

 

 

     20 through 24 years

 5%

0

2.5%

0

     25+ years service

10%

0

5.0%

0

Special Pay

 

 

 

 

  Education Incentive 1

3.0%

3.5%

0

0

  Education Incentive 2

5.0%

5.0%

0

0

  Motorcycle

2.5%

N/A

N/A

N/A

  SWAT Team

1.0%

 N/A

N/A

N/A

  Bilingual

1.0%

  1.0%

0

$75 per month

  Paramedic     or

N/A

10.0%

N/A

N/A

  EMT (emergency med tech)

N/A

  5.0%

N/A

N/A

  Swing shift (4PM to midnight)

 

 

 

5.0%

  Night shift (midnight to 8AM)

 

 

 

7.0%

Vacation Pay per year

 

 

 

 

  0 through 4 years

100 hours

144 hours

80 hours

80 hours

  More than 4 through 10 years

 

 

120 hours

120 hours

  More than 4 through 12 years

150 hours

216 hours

 

 

  More than 10 through 20 years

 

 

160 hours

160 hours

  More than 12 through 20 years

200 hours

 

 

 

  More than 12 through 23 years

 

288 hours

 

 

  More than 20 through 26 years

240 hours

 

200 hours

 

  More than 20 years

 

 

 

200 hours

  More than 23 years

 

312 hours

 

 

  More than 26 years

280 hours

 

224 hours

 

Max vacation accumulation

3 or 4 years

3 years

2 or 3 years

3 years

Sick leave per year

120 hours

216 hours

96 hours

96 hours

   Maximum accumulation

Unlimited

Unlimited

Unlimited

Unlimited

   Cash out on retirement or

100%

25%

50%

25%

   Convert to PERS service credit

100%

100%

100%

100%

   New hires

180 hours

216 hours

144 hours

96 hours

     Cash out on retirement

None

25%

None

25%

     Convert to PERS service credit

100%

100%

100%

100%

Holiday Pay per year

130 hours

156 hours

104 hours

104 hours

  Maximum accumulation

0

3 years

0

0