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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 04/19/2022 - FIRST READING OF ORDINANCE NO. 047, 2022, APPROPRI Agenda Item 14 Item # 14 Page 1 AGENDA ITEM SUMMARY April 19, 2022 Police-Office of the Chief STAFF Greg Yeager, Deputy Chief of Police Teresa Roche, Human Resources Executive Tyler Marr, Assistant City Manager Jenny Lopez Filkins, Legal SUBJECT First Reading of Ordinance No. 047, 2022, Appropriating Prior Year Reserves for the Post Employment Health Plan as Provided in the Collective Bargaining Agreement with the Fraternal Order of Police. EXECUTIVE SUMMARY The purpose of this item is to appropriate General Fund reserves for City contributions to the 2022 City Post Employment Health Plan (PEHP) to be made to the accounts of members of the Collective Bargaining Unit (CBU) of Fort Collins Police Services as agreed upon through the 2022 -2024 Collective Bargaining Agreement (CBA) with the Northern Colorado Lodge #3 of the Fraternal Order of Police (“FOP”). The CBA was approved by Council by Resolution 2021 -114 on December 7, 2021. The CBA specifies a matrix of one-time and “catch-up” City contributions to be made to CBU members’ PEHP accounts based upon their cumulative service in the CBU. A reminder of this pending appropriation was included in Ordinance No. 015, 2022, the appropriation ordinance for CBU salary increases. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading BACKGROUND / DISCUSSION In August 2004, City voters passed Citizen-Initiated Ordinance No. 001 which modified the City Code to provide for collective bargaining between the City and members of the Police Servi ces bargaining unit. Members of the bargaining unit selected the Northern Colorado Lodge #3, Colorado Fraternal Order of Police (FOP) to serve as their bargaining agent. The first collective bargaining agreement was approved in 2006. Bargaining was conducted between the City and FOP in 2021 and a tentative three-year (2022-2024) CBA agreement was reached. Council approved the CBA by Resolution 2021 -114 on December 7, 2021. Among other changes, the CBA specifies City contribution allocations in alignment with the below language: • When eligible employees (of the CBU) pass one of the milestone anniversaries (based upon cumulative service to FCPS) listed in the table below, the City will make a one-time contribution in an employee’s PEHP consistent with the amounts in the table immediately below. This contribution will be made no later than the first pay period after the end of the quarter if the employee is employed on the date of the agency employment milestone anniversary. Agenda Item 14 Item # 14 Page 2 Agency Employment Milestone Anniversary One-time PEHP contribution 10 year $5,000 15 year $7,500 20 year $12,000 25 year $15,000 • Additionally, as a one-time "catch-up," for those eligible employees who have already passed one of the milestone anniversaries (based upon cumulative service to FCPS) noted above by December 31, 2021, and are still employed as of that date, the City will make a one -time contribution in the employee’s PEHP in the applicable amount in the table below. Such contributions will be made by the end of the first quarter of 2022. Agency Employment Milestone Anniversary “Catch-up” PEHP contribution passed as of December 31, 2021 10 year $5,000 15 year $7,500 20 year $19,500 25 year $34,500 CITY FINANCIAL IMPACTS The needed funds to cover the catch-up and subsequent employment anniversary contributions total $1,674,000. These funds will come from General Fund Reserves and will be appropriated in the General Fund. -1- ORDINANCE NO. 047, 2022 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING PRIOR YEAR RESERVES FOR THE POST EMPLOYMENT HEALTH PLAN AS PROVIDED IN THE COLLECTIVE BARGAINING AGREEMENT WITH THE FRATERNAL ORDER OF POLICE WHEREAS, on December 7, 2021, the City adopted Resolution 2021-114 approving a collective bargaining agreement between the City and the Northern Colorado Lodge #3 of the Fraternal Order of Police (“CBA”); and WHEREAS, the terms of the CBA call for the City to make one-time and “catch up” contributions to the Post Employment Health Plan (“PEHP”) accounts of the bargaining unit members identified the collective bargaining agreement; and WHEREAS, the City’s contributions to the bargaining unit members’ PEHP accounts are based on the years of cumulative service in the collective bargaining unit with Fort Collins Police Services (“FCPS”); and WHEREAS, the purpose of this Ordinance is to appropriate $1,674,000 of General Fund prior year reserves to cover the City contributions to the PEHP accounts as required by the CBA; and WHEREAS, this appropriation benefits the public health, safety and welfare of the residents of Fort Collins and serves the City’s public purpose including enforcement of the provisions of the City Code and state law and such other functions and duties necessary to preserve the public peace, prevent crime, apprehend criminals and protect rights of the persons and property through the enforcement of penal laws of the City and the state; and WHEREAS, Article V, Section 9 of the City Charter permits the City Council, upon the recommendation of the City Manager, to make supplemental appropriations by ordinance at any time during the fiscal year such funds for expenditure as may be available from reserves accumulated in prior years, notwithstanding that such reserves were not previously appropriated; and WHEREAS, the Interim City Manager has recommended the appropriation described herein and determined that this appropriation is available and previously unappropriated from the General Fund and will not cause the total amount appropriated in the General Fund to exceed the current estimate of actual and anticipated revenues and all other funds to be received in this Fund during this fiscal year. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby makes and adopts the determinations and findings contained in the recitals set forth above. -2- Section 2. That there is hereby appropriated from prior year reserves in the General Fund the sum of ONE MILLION SIX HUNDRED SEVENTY-FOUR THOUSAND DOLLARS ($1,674,000) to be expended in the General Fund for the cost of the Post Employment Health Plan contributions as provided in the Collective Bargaining Agreement with the Fraternal Order of Police. Introduced, considered favorably on first reading, and ordered published this 19th day of April, A.D. 2022, and to be presented for final passage on the 3rd day of May, A.D. 2022. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 3rd day of May, A.D. 2022. __________________________________ Mayor ATTEST: _______________________________ City Clerk