MINUTES OF THE SPECIAL MEETING OF THE CITY COUNCIL Wichita, Kansas, October 10, 1997 Friday, 11:20 A.M. The City Council met in special session with Mayor Knight in the Chair. Council Members Cole, Ferris, Gale, Kamen, Rogers. (Council Member Lambke absent) Chris Cherches, City Manager; Gary Rebenstorf, Director of Law; Kathy Pewewardy, Deputy City Clerk; present. Call to Order. Mayor Knight read the call for a special meeting, the object of said meeting being for the purpose of considering the Fact-finding Report (Transit Employees), and an Executive Session. TRANSIT EMPLOYEES FACT-FINDING REPORT (TRANSIT EMPLOYEES). Council Member Kamen Council Member Kamen said he thought the Transit Employees should have a grievance procedure similar to that of the SEU (Service Employees Union). Council Member Cole Council Member Cole stated that she has strong feelings about retroactive pay request. Council Member Cole said she had spent a lot of time this past week comparing Premier Blue to the Teamsters' Health Plan over the lifetime of the employee. Using very conservative assumptions, the results showed a net savings of $131,000 for out-of-pocket expenses on the City's plan for employees over their working life. There is also the difference between the $250,000 Teamsters' and Premier Blue's $2 million annual cap. As an example, Council Members Rogers and Cole would have, in one year, had to come up with between $50,000 and $60,000 cash. A $250,000 cap is nothing when there is a major medical need. Council Member Cole said she is willing to talk about something greater than 2.3 percent in 1997 in context of a three-year contract. Chuck Mosqueda Chuck Mosqueda, Local Teamsters President, responding to a question, said the C-4 Plan has no maximum. Council Member Ferris Council Member Ferris said he did not think employees should be penalized for the time it takes for fact-finding but this process was started quite some time ago. In this case, since the City took over the Transit Authority and the negotiating procedure had been changed, Council Member Ferris said he might be able to support retroactivity. The recommendation made by Mr. Trail on Tuesday, October 7, 1997, was satisfactory. Council Member Ferris said he believed that unless the City were going to blanket-cover the Union with all of the other things in the City contracts, holidays and those kinds of things, those things should be negotiated. "I am not comfortable taking elements out of the contract and negotiating it from up here." Wages, health insurance, and pension plan have been the three major issues at impasse. The City's position was that the City wanted the bus drivers on the City health plan, pension plan, and the wage proposal that the Council has seen. Council Member Ferris said he is prepared to leave the pension as it is and to negotiate the other elements such as a shared plan for deferred compensation that would be better. At this point, concern is for the employees - not the Union - and what fits the employees. Rather than throw $10 into a pot that is going to an unfunded pension plan, preference would be to have some type of investment strategy that the employees control into a deferred compensation plan. It appears that the results would then be greater. The City has been in the 2 percent to 3 percent range on all employee groups. Council Member Ferris said he was not comfortable going above 2.3 percent. Without a third-year contract, 2.5 percent could be done. Regarding the grievance procedure, Council Member Ferris said he would have a problem just ordering that in without negotiations. Council Member Rogers Council Member Rogers said he could not find, long range, in the employees' best interest, how the City's plan is not better. The grievance procedure is one area that needs to be looked at in depth, but not at this time. An area that has not been addressed is the service that is being provided. Customer service should be addressed in the contract. Council Member Rogers said he was in favor of retroactivity. Wages should be addressed from 2.3 percent to 3.3 percent. There needs to be some wage adjustment and he was in favor of 3.3 percent for 1997. A decision needs to be made as fast as possible. Council Member Ferris momentarily absent. Mayor Knight Mayor Knight said the City and Teamsters have been at this a very long time. Negotiations, mediation, a strike, and fact-finding have been endured. The two groups have not reached an agreement. The presentations from both sides on Tuesday would indicate that there needs to be more discussion and dialogue to, at least, narrow the focus on the issues before the City Council. The City's Negotiators' criticism of the Fact-finder's conclusions may be overly harsh. The Union and the Fact-finder should not assume that the City can conveniently pay more and more for transit services without placing in jeopardy the City's ability to pay for the many public services, including public safety, the streets, and the parks and other amenities to which the bus riders want to travel. The taxpayer's pocket is not bottomless. Local problems are best settled locally, amicably, and by consensus. The parties are close to an agreement. A clear signal should be sent that the City prefers a negotiated agreement. There is sufficient incentive on both sides to have a negotiated agreement. There should be an agreement which both sides endorse. Michael Melaniphy Transit Authority General Manager explained that school bus drivers are all part- time. Regarding van drivers, Mr. Melaniphy said the Transit Authority can recruit the van drivers so the City's plan must be better. Council Member Kamen Council Member Kamen said he could go along with any of the plans he has heard but that he would not go along with making a decision and leaving certain points open. The City's health plan is much better and the grievance issue is extremely important. The benefits should not be left open. Ray Trail Director of Finance and Chief Negotiator responding to a question, said that, in terms of the City's participation in the health insurance, the City's insurance is fully funded. Retroactively, from initiation of fact-finding, the City would have to go back to late June or early July. Council Member Ferris Council Member Ferris said he did not think the grievance issue should be ordered in. Mayor Knight Mayor Knight, speaking to Chuck Mosqueda, asked that Mr. Mosqueda and the Teamsters engage with the City negotiators and try to come to an agreement with the Teamsters on a contract. This will require a lot of give and take on both sides. Chuck Mosqueda Chuck Mosqueda said he would be willing to engage in further negotiations on one conditions: That he be allowed to answer questions freely. The employees should not lose retirement benefits and other things the City does not offer. Regarding the major medical, the Teamsters have been asking the whole time to be put in at the plan the City had in December 1996. The major medical in the plan was not the major medical 200 but, rather, is one which is equivalent to, if not better than, the City's. The family plan for 1997 is $424.80, for 1998 is $473.07, and for 1999 is $503.20. Compared at weekly rates, the Teamsters' is slightly higher, however, the Teamsters' includes a lost-time benefit of $100/week for non-workers. A life insurance for 50 percent wages is also included in the plan (at no extra cost to the employee). Mr. Mosqueda said he had understood that there was agreement on everything but the matrix, holiday and vacation, and benefits. Monday, October 9th, everything changed. The Council has refused to listen to the Fact- finder's recommendations. Responding to a question, Mr. Mosqueda said singles pay the same health insurance premiums as families. The comparison of insurance rates is family to family. Council Member Cole Council Member Cole said she did not feel that all that has been done in the past was not done in good faith. Council Member Cole said she would like to hear from the City Negotiators whether or not they are willing to go back to the table for negotiations. Ray Trail Director of Finance and Chief Negotiator for the City said there are areas where he and Mr. Mosqueda agree. Mr. Trail said he would listen very carefully to what those things the Council Members are interested in pursuing in negotiations. A majority of the City Council is interested in pursuing issues of health insurance, pension issues, and grievance procedures in ways that would make the Transit employees comparable with other City employees. It is sensed that it would be very difficult for both parties to reach an agreement with an additional period of negotiations. The Council should ask itself whether it is prepared to have an agreement come back which would concede that the employees could stay in the Teamster health plan and that it would increase the City's costs to do that, that they could stay in the Teamster pension plan at an increased level as recommended by the Fact-finder, and those kinds of issues. If the Council is prepared to see a contract like that then, yes, there may be some potential for an agreement. The Council also needs to be ready to increase the amount of funding in order to make a contract happen with an increased amount over and above that which has been placed on the table. Mr. Trail stated, "My task is to carry out the will of the Council and, if it is the will of the Council to do further negotiations, I will give that my best effort." Motion -- Knight moved that the two negotiating groups get back together and redouble their efforts to reach an agreement; and that a date in late October to return to the Council with an agreement; and, if not, the Council will will then make a decision. Council Member Ferris Council Member Ferris asked Mr. Mosqueda whether or not he was interested in negotiating. Chuck Mosqueda Chuck Mosqueda said that before he could make a commitment, he would have to talk to legal counsel in Washington, D.C. Mr. Mosqueda said he did not think the Union would want to put something on the table that had not been on the table for all of these months. Council Member Ferris Council Member Ferris stated that he had a problem with the strategy that says things that are very important to the City Council are not to be on the table but that the City Council has to acquiesce with things such as health insurance or things like that. Council Member Ferris said he would support the motion and hope that this would be negotiations in good faith. If there are elements that are not the subject of negotiation in a contract, there is some question as to whether there can be good faith negotiation. Negotiation in good faith means that while someone may not want to give in on an issue, it does not mean that subject is not on the table. There may be items on both sides that are so important that a negotiator may not want to give them up but, during the course of negotiations, there may be common ground where that important element may be worth giving up in order to get something else in return. Chuck Mosqueda Chuck Mosqueda said he planned on negotiating in good faith and he hoped the City Council and Ray Trail would take the direction of the Fact-finder. Council Member Rogers Council Member Rogers said that for the Council to direct the outcome of negotiations is not negotiation. Negotiations should be an open forum for the presentation of the various views and options and, as a result of some sort of reconciliation, an acceptable contract. Council Member Kamen Council Member Kamen asked the City's Negotiator to pursue the grievance procedure. Motion restated -- Knight restated the motion that the two negotiating groups get back together and redouble their efforts to reach an agreement; that October 28th be set for return to the Council with an agreement; and, if not, the Council will will then make a -- carried decision. Motion carried 6 to 0. (Lambke absent) EXECUTIVE SESSION Motion -- Knight moved that the Council recess to executive session to consider consultation with legal counsel on matters privileged in the attorney-client relationship relating to legal advice and contract negotiations; matters relating to employer- employee negotiations; confidential data relating to financial affairs or trade secrets of a business; and and the regular meeting be resumed at -- carried 1:15 p.m. Motion carried 6 to 0. (Lambke absent) RECESS Council recessed at 12:33 p.m. and reconvened in regular session at 1:15 p.m. Mayor Knight Mayor Knight announced that no action was necessary as a result of the executive session. ADJOURNMENT The City Council meeting adjourned at 1:17 p.m. Kathy Pewewardy Deputy City Clerk COUNCIL PROCEEDINGS JOURNAL 164 OCTOBER 10, 1997 Page 1