HomeMy WebLinkAboutItem 5d. Side Letter to MOU with International Association of Firefighters, Local 3523, regarding Paramedic Incentive Pay Item 5d
Department: Human Resources
Cost Center: 3001
For Agenda of: 8/20/2024
Placement: Consent
Estimated Time: N/A
FROM: Nickole Domini, Human Resources Director
Prepared By: Jeff Andrews, Senior Human Resources Analyst
SUBJECT: APPROVE A SIDE LETTER REGARDING PARAMEDIC INCENTIVE PAY
TO THE JANUARY 1, 2024 THROUGH JUNE 30 2027, MEMORANDUM
OF UNDERSTANDING BETWEEN THE CITY OF SAN LUIS OBISPO AND
THE INTERNATIONAL ASSOCIATION OF FIREFIGHTERS, LOCAL 3523
RECOMMENDATION
Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis
Obispo, California, approving a Side Letter to the January 1, 2024 through June 30, 2027
Memorandum of Understanding between the City of San Luis Obispo and The
International Association of Firefighters, Local 3523.”
POLICY CONTEXT
The Side Letter Agreement of the International Association of Firefighters, Local 3523
Memorandum of Understanding (MOU) is in alignment with Council adopted
Compensation Philosophy and Labor Relations Objectives, and complies with the
California Code of Regulations (CCR), 2 CCR 571(b).
DISCUSSION
Background
Before the City and The International Association of Firefighters, Local 3523 ("Fire"),
reached a tentative agreement for the successor 2024-2027 Fire MOU, which was later
adopted and ratified by the Council on December 5, 20231, staff sought clarification from
the California Public Employees' Retirement System (CalPERS) about whether certain
special pay incentives were reportable as special compensation for inclusion in pen sion
benefits. Specifically, the City requested clarification regarding whether Paramedic Field
Training Officer premium, a new special pay that was incorporated into the 2024 -27 Fire
MOU, was reportable for inclusion in pension benefits. CalPERS took over six months to
complete their review due to staffing challenges and constraints. During their review,
CalPERS identified a potential compliance concern for Paramedic Incentive Pay and
required minor language changes to the Paramedic Field Training Officer premium
Article.
1 Resolution No. 11461 (2023 Series)
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Item 5d
CalPERS indicated that for the Paramedic Incentive Pay to remain reportable, as it has
been for several decades, it must be available to each employee that possesses a
paramedic certificate. The language in the existing 2024 -2027 Fire MOU requires
individuals to be assigned paramedic duties by the Fire Chief or designee. The City’s
practice had been to provide Paramedic Incentive Pay to all Firefighters, Fire Engineers,
and Fire Captains who maintained the paramedic certification. The City agreed to make
modifications to the language to conform to the City’s practices and to eliminate CalPERS’
concerns. The City submitted revised language to CalPERS, which CalPERS approved.
This revised language is reflected in Attachment A.
The City also made minor changes to the Paramedic Field Training Officer premium to
make certain clarifications requested by CalPERS to ensure that the item was reportable.
The City made changes to confirm that the assignment must be routine and consistent
and that there was a process for selecting field training officers. CalPERS also approved
the language for Paramedic Field Training Officer premium.
Under applicable statutes and regulations, the City Council must approve the labor
agreement containing any item of special compensation reported to CalPERS. Based on
this requirement, City staff prepared a Side Letter Agreement with the revised language
for paramedic field training officer and the paramedic pay incentive for Council review and
approval. The City fulfilled its meet and confer obligations with Fire’s labor
representatives. All parties have agreed to the language and have signed the attached
Side Letter Agreement, subject to Council approval.
Previous Council or Advisory Body Action
The City Council adopted the 2024-27 Fire MOU on December 5, 2023.
Public Engagement
This report is on the consent agenda for August 20, 2024. The agenda and report will be
posted seven days in advance of the meeting, and the public will have an opportunity to
provide feedback during public comment in advance of the Council voting on the consent
agenda.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not apply to the recommended action in
this report, because the action does not constitute a “Project” under CEQA Guidelines
Sec. 15378.
FISCAL IMPACT
Budgeted: Yes Budget Year: 2023-24 and ongoing
Funding Identified: Yes
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Item 5d
Fiscal Analysis:
Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund
State
Federal
Fees
Other:
Total $0 $0
There is no fiscal impact to approving this Side Letter Agreement. The City has reported
the Paramedic Field Training Officer premium as special compensation to CalPERS since
the adoption of the 2024-27 Fire MOU, and has reported the Paramedic Incentive Pay as
special compensation to CalPERS for several decades.
ALTERNATIVES
Do not approve the Side Letter Agreement, and direct staff to return to the bargaining
table with Fire. This alternative is not recommended as the Side Letter follows applicable
statues and regulations and aligns with the City’s current practice .
ATTACHMENTS
A - Draft Resolution approving a Side Letter to the January 1, 2024 through June 30, 2027
Memorandum of Understanding between the City of San Luis Obispo and The
International Association of Firefighters, Local 3523
B - Exhibit A to Draft Resolution - Side Letter Agreement
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R ______
RESOLUTION NO. _____ (2024 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, APPROVING A SIDE LETTER TO THE
JANUARY 1, 2024 THROUGH JUNE 30, 2027 MEMORANDUM OF
UNDERSTANDING BETWEEN THE CITY OF SAN LUIS OBISPO AND
THE INTERNATIONAL ASSOCIATION OF FIREFIGHTERS, LOCAL
3523
WHEREAS, on December 5, 2023 the City Council adopted Resolution #11461
(2023 Series) ratifying the 2024-2027 Memorandum of Understanding between the City
of San Luis Obispo and The International Association of Firefighters, Local 3523 (Fire);
and
WHEREAS, while the City was in the process of negotiating the 2024-2027 Fire
MOU, staff requested clarification from the California Public Employees’ Retirement
System (“CalPERS”) regarding whether certain special pay incentives were reportable to
CalPERS as special compensation for the purposes of inclusion in pension benefits; and
WHEREAS, as part of the CalPERS review, the City was required to make
modifications via a Side Letter approved by the City Council to clarify the City’s existing
practices for paramedic field training officer and the paramedic pay incentive to conform
with CalPERS statutes and regulations.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis
Obispo as follows:
SECTION 1. The Side Letter to the Memorandum of Understanding between the
City of San Luis Obispo and The International Association of Firefighters, Local 3523,
attached hereto as “Exhibit A” and incorporated herein by this reference, is hereby
approved by the Council. All other terms and conditions of the Memorandum of
Understanding remain as previously approved on December 5, 2023.
SECTION 2. The City Clerk shall file and furnish a copy of the resolution to Patrick
Larsen, The International Association of Firefighters, Local 3523, and Nickole Domini,
Director of Human Resources.
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Resolution No. _____ (2024 Series) Page 2
R ______
SECTION 3. Amendments to compensation for The International Association of
Firefighters, Local 3523 do not constitute a “Project” under CEQA Guidelines Sec. 15378.
Upon motion of Council Member ___________, seconded by Council Member
___________, and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of _______________ 20 24.
___________________________
Mayor Erica A. Stewart
ATTEST:
______________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
______________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the
City of San Luis Obispo, California, on ______________________.
___________________________
Teresa Purrington
City Clerk
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SIDE LETTER TO THE JANUARY 1, 2024 – JUNE 30, 2027 MEMORANDUM OF
UNDERSTANDING BETWEEN THE CITY OF SAN LUIS OBISPO AND THE
INTERNATIONAL ASSOCIATION OF FIREFIGHTERS, LOCAL 3523
The City of San Luis Obispo (hereinafter the “City”) and the International Association of
Firefighters, Local 3523 (hereinafter the “Union”), jointly referred to as the “Parties”, agree to the
listed terms and conditions of this Side Letter. Except as modified by this Side Letter, all existing
terms and conditions of the Memorandum of Understanding (MOU) shall remain unchanged.
Article 8 – Promotional Opportunities shall be modified as follows:
Announcements for promotional opportunities for members of the Union will list testing and
scoring processes that will be followed. Once defined, testing, and scoring processes will not be
modified.
There will be no banding on promotional exams and, if a candidate is by-passed during the
selection process, that person will be given a written reason by the Fire Chief as to why they were
by-passed. The City agrees to an opener to discuss the promotional process if the Fire Chief goes
below the top three (3) candidates in making their selection on promotional exams two (2) or more
times during the term of this MOU.
In accordance with Section 2.36.240 A4 of the City’s Personnel Rules and Regulations, “When
an employee is promoted, the employee shall be paid at the first step in the salary range for the
new positions whose salary is at least five (5%) percent above the last step held in the former
position.” When promoting to Fire Engineer or Fire Captain, the last step held will be defined as
step pay only, exclusive of any incentive (including Paramedic pay for a Firefighter) or overtime
pay unless the employee is no longer eligible for such incentive upon promotion (e.g., Paramedic
Coordinator). In the event of a promotion to Fire Captain, where the Fire Department exceeds the
specified minimum number of Paramedics as outlined in Article 50 – Staffing, and there is no
operational requirement for the promoted employee to retain their Paramedic status as
determined by the Fire Chief or designee, thus discontinuing their eligibility for Paramedic
Incentive Pay, the City shall factor the Paramedic Incentive Pay into the salary determination for
the promotion.
Step placement upon promotion for Fire Battalion Chief is primarily based on applicable education
and experience. Education and experience will be first applied to meet the minimum requirements
per the current job description. Education and/or experience in excess of that needed to meet
minimums will be applied as follows:
Two years of experience as a SLO City Fire Captain equates to one step.
Two years of education equates to one step.
Once initial step placement is proposed, a pay analysis will be conducted to ensure step
placement is above Fire Captain gross pay. The calculation will be as follows:
Fire Captain gross pay includes base pay, regularly scheduled FLSA pay, and the
following incentives: Paramedic Coordinator Incentive, Paramedic Field Training Officer
Incentive, Paramedic Incentive, Station 1 Captain Incentive, and USAR incentive.
Fire Battalion Chief proposed step is based on education and experience plus eligible
incentives.
If Fire Battalion Chief proposed step is more than Fire Captain gross pay; then Battalion
Chief step placement is appropriate.
Docusign Envelope ID: 4D87DAD7-257E-4074-8D9A-E6FB1036180E
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SIDE LETTER TO THE JANUARY 1, 2024 – JUNE 30, 2027 MEMORANDUM OF
UNDERSTANDING BETWEEN THE CITY OF SAN LUIS OBISPO AND THE
INTERNATIONAL ASSOCIATION OF FIREFIGHTERS, LOCAL 3523
If Fire Battalion Chief proposed step is less or equal to the Fire Captain gross pay; adjust
to the next Fire Battalion Chief step above Fire Captain gross pay.
Article 12 – Paramedic Incentive Pay shall be modified as follows:
Firefighters, Fire Engineers, and Fire Captains may be assigned to Paramedic duties by the Fire
Chief or designee. Firefighters that serve as Paramedics are moved into a salary grade that is
twelve percent (12%) higher than the base Firefighter grade. Fire Engineers and Fire Captains
shall qualify for a twelve percent (12%) incentive of their base rate of pay.
This pay incentive shall be effective the first full pay period following the employee’s successful
completion of paramedic certification and assignment to Paramedic duties, as determined by the
Fire Chief or designee.
Effective July 1, 2017, the City shall pay a twelve percent (12%) of the monthly top step
Firefighter base salary, prorated to a biweekly amount, to those Firefighters, Fire
Engineers, or Fire Captains who obtain and maintain a paramedic certification. This pay
incentive shall be effective the first full pay period following completion of paramedic
certification and assignment.
Effective July 6, 2023, the paramedic incentive shall change to be twelve percent (12%) of
the employee’s base pay. The Firefighter Paramedic salary grade will be twelve percent
(12%) higher than the Firefighter EMT salary grade and Fire Engineers or Fire Captains
assigned to EMT Paramedic duties by the Fire Chief or designee will receive a twelve
percent (12%) special pay incentive.
Effective August 29, 2024, the City shall pay a twelve percent (12%) pay incentive of the
employee’s base rate of pay, prorated to a biweekly amount, to those Firefighters, Fire
Engineers, or Fire Captains who obtain and maintain a paramedic certification. This pay
incentive shall be effective the first full pay period following completion of paramedic
certification and assignment.
Firefighters that are hired as a Firefighter/Paramedic shall be required to maintain an active
Paramedic certification to maintain minimum staffing levels as outlined in the Staffing Article.
Paramedics required to recertify shall be granted four (4) hours training time per month for six (6)
months prior to the recertification. Such hours shall be scheduled by the Department during the
normal working day.
See Article 8 – Promotional Opportunities for guidance on when the City shall include Paramedic
Incentive Pay in determining salary placement for promotion.
Article 14 – Paramedic Field Training Officer Pay shall be modified as follows:
The Department will support four (4) Paramedic Field Training Officers (FTOs). The City
shall pay $150 bi-weekly to employees with an active Paramedic certification who are routinely
and consistently assigned as an FTO and actively serving as a Training Officer. FTOs will be
Docusign Envelope ID: 4D87DAD7-257E-4074-8D9A-E6FB1036180E
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SIDE LETTER TO THE JANUARY 1, 2024 – JUNE 30, 2027 MEMORANDUM OF
UNDERSTANDING BETWEEN THE CITY OF SAN LUIS OBISPO AND THE
INTERNATIONAL ASSOCIATION OF FIREFIGHTERS, LOCAL 3523
selected by the Fire Chief or designee based on letters of interest solicited and a selection
process defined by department policy. FTOs Training Officers must meet the minimum
qualifications and training standards established by the County coordinating agency. Employees
assigned as a Training Officer by the Fire Chief or designee meeting this eligibility criteria who
are routinely and consistently assigned as FTOs shall receive the incentive the first full pay
period following the assignment. It is recognized that the maintenance of the FTOs Training
Officer program will be subject to the department procedures for filling any Training Officer FTO
vacancies.
All terms and conditions of The International Association of Firefighters, Local 3523 Memorandum
of Understanding not specifically modified herein shall remain in effect for the term of the
agreement as specified above.
This Side Letter shall be of no force and effect until approved by the City Council.
CITY OF SAN LUIS OBISPO THE INTERNATIONAL ASSOCIATION
OF FIREFIGHTERS, LOCAL 3523
Todd Tuggle,
Fire Chief
Howard A. Liberman,
Labor Relations Consultant
Whitney McDonald,
Interim City Manager
Patrick Larsen,
Local 3523 President
Nickole Domini,
Human Resources Director
Jimmy Witt,
Local 3523 Vice President
Docusign Envelope ID: 4D87DAD7-257E-4074-8D9A-E6FB1036180E
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