The current contract with the Hermiston Police Association (HPA) expires on June 30, 2019. On December 5, 2018 we held our first bargaining session and made a lot of progress with each side able to be clear on their priorities and expectations. The bargaining team for the City was Byron Smith and the City's labor attorney Bruce Bishof. The HPA was represented by Jaime Goldberg, their attorney, Tim Miears, Mario Cobian, and Victor Gutierrez.

The two bargaining teams met again on January 15, 2019. This meeting involved a lot of back and forth discussion and ended with a tentative agreement that is before the Council for approval with the following proposed changes:

• Removal of Fair Share language in response to the recent U.S. Supreme Court ruling (Janus v AFSCME).
•  Capping of sick leave accumulation to 2080 hours of sick leave.
• Extending the sick leave buyout provisions in the Employee Handbook to bargaining unit members.
  • Removes existing incentive of 20 hours personal leave for non or low use of sick leave each calendar year.
  • Provides employees that leave for reasons other than termination the following benefit:
    • After 15 years of employment a payout of 1/8 of the employee's accumulated sick leave at current compensation rate into a HRA VEBA medical reimbursement plan.
    • After 25 years of employment a payout of 1/4 of the employee's accumulated sick leave at current compensation rate into a HRA VEBA medical reimbursement plan.
• Clarified the policy of vacation use by union members.
• Increases the union members contribution for health insurance premiums incrementally to 10% at the end of the 3rd year of the contract with the following steps (Union currently contributes 2.5%):
  • July 2019 - 4.5%
  • July 2020 - 7%
  • July 2021 - 10%
• Increases VEBA contributions for union members by $500 per year.
• Institutes a matching program for employees contributing to a deferred compensation program (457 plans) where the city will match up to 2% of the first $5,000 contributed by the employee.
• Clarifies that dry cleaning of uniforms will only be provided if a dry cleaner exists in Hermiston.
• Increases wages on the following schedule:
  • 2.75% on 7/1/19
  • 2.75% on 7/1/20
  • 2.5% on 7/1/21
• Requires the HPA and management to meet during the next year to establish a new wellness program to replace an outdated and underused wellness/fitness incentive.
• Increases the bilingual incentive pay to 5%.
• Adds incentive pay of $250 per month for officers in the following positions or with the following certifications:
  • Deputy Medical Examiner (DME)
  • Drug Recognition Expert (DRE)
  • SWAT members
  • Reserve Coordinator
  • Firearms Instructor
• Increases the Comp time bank limit from 60 hours to 120 hours.
• Changes the residency requirement to an incentive of $500 per year to those union members that live within the city limits for the full prior year.

The financial impacts are as follows:

• The salary increases will increase the overall personnel costs by the percentages mentioned above.
• The non percentage financial items impact the budget by $19,250.
• After the third year of increases in employee contributions for insurance the City's contribution will be reduced by approximately $32,000 annually at this year's rates.

The increase in VEBA and the deferred compensation program were instituted because they are ways to assist our employees without increasing the City's PERS contributions.

1. Approve the proposed 3 year contract with the HPA.
2. Send the negotiation team back to the bargaining table.