09/23/2010 - Council Impasse
CITY COUNCIL HEARING FOR RESOLUTION OF IMPASSE MINUTES
CITY OF CLEARWATER
September 23, 2010
Present: Frank Hibbard Mayor
John Doran Vice-Mayor
Paul Gibson Councilmember
George N. Cretekos Councilmember
Bill Jonson Councilmember
Also present: Pamela K. Akin City Attorney
Rosemarie Call City Clerk
Patricia O. Sullivan Board Reporter
The Mayor called the hearing to order at 1:30 p.m. at City Hall.
To provide continuity for research, items are in agenda order although not
necessarily discussed in that order.
1 - Introduction by Mayor
1.1. Rules of Decorum
AND
1.2. Issue at Impasse – Wage increase for Fiscal Year 2009/2010
AND
1.3. Procedure
Mayor Frank Hibbard reviewed the rules of decorum and hearing procedure. The issue at
impasse related to a wage increase for FY (Fiscal Year) 2009/2010 for CWA (Communication
Workers of America) Local 3179 represented employees.
2 - CWA Presentation
(up to 1 hour limit; may reserve up to 10 minutes of allotted time for
rebuttal).
CWA representative Steve Sarnoff said this is the first impasse since the union organized in
Clearwater. He appreciated efforts to reassign staff members with eliminated positions and
Council’s support for opening the Employee Health Clinic to assist lowering employee health
care costs.
Mr. Sarnoff reviewed the bargaining process. The union had supported a 2% increase, equal to
one week’s salary. The City had withdrawn its offer for a $250 one-time payment. Mr. Sarnoff
said union members rejected ratification of a contract that included no additional money but
memorialized city policy to find alternative placements for staff in eliminated positions. He said
the City declared an impasse. Mr. Sarnoff requested that the City Council consider a one-time
lump sum payment of $250, per CWA represented employee for a total cost of $218,000, which
Council Impasse 2010-09-23 1
was the City’s last offer before it called an impasse. He suggested using reserve funds to pay
for the bonus.
It was stated that City Council rules limit use of reserve funds to one-time costs.
3 – City Presentation
(up to 1 hour limit; may reserve up to 10 minutes of allotted time for
rebuttal).
Human Resources Director Joe Roseto requested that the City Council resolve the impasse
between the City of Clearwater and CWA Local 3179 represented employees. The FY 2008-
2011 CWA agreement had a 2.5% increase for year one and allowed wage negotiations to be
reopened for years two and three. Mr. Roseto reviewed negotiations related to the wage
reopener that began in August 2009. While the union did reduce its demands, the City was
consistent in offering no base pay increase for the contract year.
On April 5, 2010, the City proposed a $150 one-time payment for each bargaining unit member
and no adjustment to pay ranges. On April 20, 2010, the City increased its offer to a $250 one-
time payment as its “best and final” offer. The union counter-proposed a payment equal to 2%
of annual base pay. In July, following in-depth Council discussion regarding the budget and
with no expectation for an agreement, the City felt its proposal was unrealistic and withdrew it.
The union accepted this with a condition that the City try to find alternate job placements for
those subject to layoff. In spite of union efforts, this tentative agreement was not ratified. With
no expectation of reaching an agreement, the City declared impasse on July 27, 2010.
Mr. Roseto said the City no longer has recruiting problems related to competitive wages and
retention. Increasing union pay range minimums would cost $64,000 annually and a 1%
general wage increase would cost $288,000 annually. Mr. Roseto complimented CWA
employee efforts but said the new economic reality changes how the City considers employee
wage and benefit enhancements. Revenue declines require reducing costs while maintaining
essential services.
Mr. Roseto said the City has made extraordinary efforts to provide for employee welfare: 1)
opened Employee Health Center; 2) encouraged eligible employees to retire; and 3) significantly
increased its contribution to the pension fund. While more than 200 FTE (Full-Time Equivalent)
positions (175 in General Fund) were eliminated in the last three years, only four part-time and
two full-time CWA employees were laid off after refusing alternate positions.
Mr. Roseto requested the City Council support the City’s impasse position of no wage increase,
cash remuneration, or pay range adjustments for CWA represented employees.
4 - CWA Rebuttal
(if time reserved).
Mr. Sarnoff said while the CWA voted out STEP raises in 1998, the City continued providing
other city unions this economic benefit. The CWA only was allowed to bargain wages. He said
reserve funds are maintained for a rainy day and it is raining. He said the bonus would have an
economic return to the community; the loss of 200 FTEs has had a compelling impact on the
City.
Council Impasse 2010-09-23 2
Employees to be Heard
Five CWA represented employees spoke in support of pay increases.
5 - City Surrebuttal (if time reserved): None.
The City Council recessed from 2:38 p.m. to 2:55 p.m.
6 - Council Discussion
Discussion ensued regarding city employee benefits, which include City contributions to health
insurance and Pension Plan. It was stated that the Council would support pay increases if the
City could afford them. It was commented that STEP programs will be bargained with other
unions.
Support was expressed for negotiating through the bargaining process, not via impasse. It was
hoped that next year the union will come to the table with realistic expectations and proposals.
Appreciation was expressed for staff efforts, dedication, and hard work
7 - Council Decision on Issue at Impasse
Councilmember Gibson moved that there be no change to the CWA contract. Motion failed for
lack of second.
Councilmember Cretekos moved to provide a 0% wage increase and to provide a $100 one-
time remuneration for CWA represented employees for FY 2009/2010. The motion was duly
seconded. Upon the vote being taken: Vice Mayor John Doran, Councilmembers George N.
Cretekos and Bill Jonson voted "Aye"; Mayor Frank Hibbard and Councilmember Paul Gibson
voted "Nay." Motion carried.
8 - Adjourn
The hearing adjourned at 3:28 p.m.
Mayor
,City of Clearwater
Council Impasse 2010-09-23 3