HomeMy WebLinkAboutItem 5f. Approve a side lettter regarding Paramedic Coordinator pay to the 01-01-2024 through 06-30-2027 MOU between the City and the International Association of Firefighters, Local 3523 Item 5f
Department: Human Resources
Cost Center: 3001
For Agenda of: 6/2/2026
Placement: Consent
Estimated Time: N/A
FROM: Nickole Domini, Human Resources Director
Prepared By: Jeff Andrews, Human Resources Manager
SUBJECT: APPROVE A SIDE LETTER REGARDING PARAMEDIC COORDINATOR
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” amending Article 13 – Paramedic
Coordinator Pay. (Attachment A)
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, California Code of
Regulations (CCR) sections 571 and 571.1, and California Government Codes (GC)
20049 and 20636. For California Public Employees' Retirement System (CaIPERS)
classic members (those who joined the system before January 1, 2013), CCR section
571(b)(1) provides that all items of special compensation must be supported by a written
labor policy or agreement that has been approved by the employer’s governing body. The
labor policy must clearly explain eligibility requirements . For Public Employees’ Pension
Reform Act of 2013 (PEPRA) members (those who joined the system on or after January
1, 2013), requirements for documenting incentives in a written labor agreement are
defined in CCR section 571.1(a)(4)(H), which provides that pensionable compensation
must be paid pursuant to a publicly available pay schedule that does not reference
another document in lieu of disclosing the item of pensionable compensation. GC section
20049 defines “Labor policy or agreement” as any written policy, agreement,
memorandum of understanding, legislative action of the elected or appointed body
governing the employer, or any other document used by the employer to specify the
payrate, special compensation, and benefits of represented and unrepresented
employees.
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Item 5f
DISCUSSION
Background
The City and The International Association of Firefighters, Local 3523 ("Fire"), reached
an agreement for the successor 2021-2023 Fire MOU that was adopted and ratified by
the Council on July 20, 20211. A new incentive called Paramedic Coordinator Pay, a 5%
pay incentive to employees assigned to Paramedic Coordinator duties, was negotiated
as part of the agreement. The City and Fire reached an agreement for the successor
2024-20272 Fire MOU, with no substantive changes to the Paramedic Coordinator Pay
Article, which is currently active.
In February 2026, (CaIPERS) conducted a compliance review of compensation reported
on behalf of a City employee that has since retired . The review determined that the
Paramedic Coordinator Pay, as currently defined in Article 13 of the 2024 –2027 Fire
MOU, does not comply with the applicable statutes under the California Public
Employees' Retirement Law (PERL).
Importantly, the City of San Luis Obispo is not alone in receiving this type of feedback
from CalPERS. Agencies throughout California are experiencing similar reviews, with
CalPERS requiring small updates or clarifications to long-standing MOU language – even
in cases where such language has remained unchanged for decades.
CalPERS indicated that for the Paramedic Coordinator Pay to remain reportable as
special compensation, the MOU Article must clearly demonstrate that this pay is provided
to employees who are routinely and consistently assigned to training activities in auxiliary
medical techniques, which aligns with the department’s operational practices. In addition,
while the current language states that the payment is available to
Firefighters/Paramedics, Fire Engineers, and Fire Captains, it creates a group-or-class
issue3 under GC 20636 due to the discretionary authority granted to the Fire Chief. To
maintain compliance, clear and objective eligibility criteria must be established to ensure
the payment is uniformly available to all employees who meet the defined conditions.
This issue appears not only in the current 2024 –2027 MOU but also in the prior 2021–
2023 MOU. Staff worked closely with CalPERS to craft revised language that resolves
the concerns present in both MOUs. The corrected language is included in the Paramedic
Coordinator Pay Side Letter (Attachment B). The legislative draft changes are shown in
Attachment C.
Because statutes and regulations require City Council approval for all items classified as
special compensation, the revised language is being presented for formal adoption
1 Resolution 11265 (2021 Series)
2 Resolution 11461 (2023 Series)
3 A "group or class issue" typically arises when an employee receives pay or benefits that are not applied
equally to similarly situated employees in the same logical work -related grouping (e.g., job duties or work
location.)
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Item 5f
through the Side Letter. This action will allow a retired member to receive the appropriate
pensionable compensation and will ensure ongoing compliance for current employees
serving as Paramedic Coordinators.
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 June 2, 2026. 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.
CONCURRENCE
The parties fulfilled meet and confer obligations and Fire union members voted in favor
of ratifying the side letter agreement on Wednesday, May 13, 2026.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) 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: 2025-26 and ongoing
Funding Identified: Yes
Fiscal Analysis:
There is no fiscal impact to approving this Side Letter Agreement. The City has reported
the Paramedic Coordinator Pay premium as special compensation to CalPERS since the
adoption of the 2021-23 Fire MOU.
Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund
State
Federal
Fees
Other:
Total $0 $0 $0 $0
ALTERNATIVES
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Item 5f
Do not approve the Side Letter Agreement. Instead, direct staff to return to the
bargaining table with Fire. 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 Signed
C. Side Letter Agreement Legislative Draft
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R ______
RESOLUTION NO. _____ (2026 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 July 21, 2021, the City Council adopted Resolution #11265 (2021
Series) ratifying the 2021-2023 Memorandum of Understanding between the City of San
Luis Obispo and The International Association of Firefighters, Local 3523 (Fire); and
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, due to CalPERS review, the City is required to make modifications via
a Side Letter approved by the City Council to clarify the City’s existing practices for
providing Paramedic Coordinator Pay to conform with CalPERS requirements.
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 MOU remain as previously
approved.
SECTION 2. The City Clerk shall file and furnish a copy of this Resolution to Eric
Lokkart, President of The International Association of Firefighters, Local 3523, and
Nickole Domini, Director of Human Resources.
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 26.
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Resolution No. _____ (2026 Series) Page 2
R ______
___________________________
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 and the International Association of Firefighters, Local 3523
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 shall
remain unchanged.
ARTICLE 13 – PARAMEDIC COORDINATOR PAY
A. The City shall provide an additional five percent (5%) pay incentive, calculated
based on the employee’s base rate of pay, to Firefighters, Fire Engineers, or Fire
Captains who hold an active paramedic certification and are routinely and
consistently assigned to coordinate training activities in auxiliary medical
techniques as a Paramedic Coordinator.
B. The pay incentive shall take effect beginning the first full pay period following the
assignment and shall remain effective throughout the duration of the employee’s
assignment as Paramedic Coordinator.
C. This pay incentive shall apply to both MOU periods: January 1, 2021, through
December 31, 2023, and January 1, 2024, through June 30, 2027.
This Side Letter shall be of no force and effect until approved by the City Council. 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.
CITY OF SAN LUIS OBISPO THE INTERNATIONAL ASSOCIATION
OF FIREFIGHTERS, LOCAL 3523
Randy Harris,
Interim Fire Chief
Howard A. Liberman,
Labor Relations Consultant
Whitney McDonald,
City Manager
Eric Lokkart,
Local 3523 President
Nickole Domini,
Director of Human Resources
Jake Barkhimer,
Local 3523 Vice President
Docusign Envelope ID: F260C477-436C-89F6-82DA-D6404EC4838E
Page 45 of 454
Page 46 of 454
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 and the International Association of Firefighters, Local 3523
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 shall
remain unchanged.
ARTICLE 13 – PARAMEDIC COORDINATOR PAY
A. The City shall pay provide an additional five percent (5%) pay incentive,
ofcalculated based on the employee’s base rate of pay, to those
Firefighters/Paramedics, Fire Engineers, or Fire Captains who hold an active
paramedic certification and are routinely and consistently assigned to coordinate
training activities in auxiliary medical techniques as a Paramedic Coordinator
duties by the Fire Chief or designee.
B. Theis pay incentive is effective shall take effect beginning the first full pay period
following the assignment and shall remain effective throughout the duration of the
employee’s assignment as Paramedic Coordinator.
C. This pay incentive shall apply to both MOU periods: January 1, 2021, through
December 31, 2023, and January 1, 2024, through June 30, 2027.
This Side Letter shall be of no force and effect until approved by the City Council. 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.
CITY OF SAN LUIS OBISPO THE INTERNATIONAL ASSOCIATION
OF FIREFIGHTERS, LOCAL 3523
Randy Harris,
Interim Fire Chief
Howard A. Liberman,
Labor Relations Consultant
Whitney McDonald,
City Manager
Eric Lokkart,
Local 3523 President
Nickole Domini, Jake Barkhimer,
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Director of Human Resources Local 3523 Vice President
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