San Jose passes settlement framework replacing Measure B

SAN JOSE, Calif. - The San Jose City Council on Tuesday passed an alternative settlement framework reached last month with the city's police and fire unions to replace a measure passed more than three years ago.

In a 10 to 1 vote, the council approved the agreement reached on July 15 between the city, San Jose Police Officers' Association and International Association of Fire Fighters Local 230.

Measure B was a pension and retiree healthcare benefits reform measure passed by voters in June 2012, which led many of the city's bargaining units to file lawsuits against the city.

The City Council unanimously approved a wage increase for the POA that includes a 5 percent non-pensionable bonus and an 8 percent wage increase.

Once city officials reach agreements with other bargaining units on Measure B, they will go before a judge who will decide if the measure should be invalidated and replaced with the alternative framework.

In December 2013, Santa Clara County Superior Court Judge Patricia Lucas said the city couldn't increase employee pension contributions and cut contracted cost-of-living increases, but could lower employee pay for their retirement plans.

The POA said the measure's passage led hundreds of officers to leave the department.

The city started negotiation talks in April and reached a tentative agreement in July.

Mayor Sam Liccardo said there was a "valiant effort" on both sides of the bargaining table.

The agreement includes a new lowest cost healthcare plan for retirees and a three-member independent medical review board to review disability applications, said Jennifer Schembri, director of the city's Office of Employee Relations.

A public safety wellness improvement committee will be established to help streamline the workers' compensation process, reduce costs, increase prevention and expedite an employee's return to the job, Schembri said.

"This is an historic day. I've been around for a few years and went through definitely the worst of it," Vice Mayor Rose Herrera said.

The new agreement offers a lower gross pay for officers in fiscal year 2016-2017 compared to other Bay Area agencies, but the changes make San Jose more competitive, Liccardo said.

If the judge doesn't invalidate the measure, the city and unions have agreed to present the settlement to voters in the form of a ballot measure in November 2016.

Councilman Pierluigi Oliverio cast the sole vote against the agreement, which he said should be brought to voters instead of going through a court process.

POA President Paul Kelly said the agreement was good not just for the police and fire unions, but also for the rest of the community.

"This settlement puts end to physical roadblocks that prevented us from recruiting police officers, keeping police officers and moving our department forward," POA Vice President James Gonzales said.

Sean Kaldor, fire union vice president, thanked the council on behalf of the city's 645 firefighters along with the police officers on reaching an agreement after countless hours and days spent in negotiations.