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HomeMy WebLinkAbout01/05/1999, C8 - MEMORANDUM OF AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND THE SAN LUIS OBISPO FIRE BATTALION CHIEFS' ASSOCIATION FOR THE PERIOD OF 7/1/98- 6/30/00council j aGEnaa Report C I T Y OF SAN LUIS O B 1 S P O FROM: Ken Hampian, Assistant City Administrative Officer/ Ann Slate, Personnel Directoro.N Prepared by: Karen Jenny, Risk ManagerA SUBJECT: Memorandum of Agreement between the City of San Luis Obispo and the San Luis Obispo Fire Battalion Chiefs' Association for the period of 7/1/98- 6/30/00 CAO RECOMMENDATION Adopt a resolution approving the Memorandum of Agreement. DISCUSSION The Memorandum of Agreement (MOA) between the City of San Luis Obispo and the San Luis Obispo Fire Battalion Chiefs' Association expired on July 1, 1998, after a term of two years. Mier meeting with the City Council in closed session in July of 1998, the Council directed staff to enter into negotiations with the Association to develop a successor agreement. The City's negotiators were Karen Jenny, Risk Manager, and Ken Hampian, Assistant CAO. The Association's team consisted of two of the three Battalion Chiefs, Ken McCool, and Warren Stephenson. A tentative agreement has been reached which was ratified by the Association membership and reviewed with Council in closed session on December 8, 1998. The two year agreement is consistent with City policy and previous Council instructions. Following is a summary of the significant changes and cost items included in the agreement: Terms of the Agreement: 1. Two year contract. 2. Salary increase of 3% effective the first day of the first full pay period in July 1998, and an equity adjustment of 2% effective the first day of the first full pay period in January 1999. 3% salary increase effective the first full pay period in July 1999, and a second equity adjustment of 2% effective the first day of the first full pay period in January 2000. 3. Increase in the City's contribution to the cafeteria plan for medical insurance from $400 to $420 per month. 4. Increase in administrative leave of 8 hours. 5. Effective January 1, 1999, employees in this unit will have the option to cash out 72 hours of vacation leave annually. 6. Effective January 1, 1999, the City shall discontinue providing long -term disability insurance for employees of this unit. co -( Council Agenda Report — Memorandum of Agreemen4 Fire Battalion Chiefs Page 2 7. Upon request of either the Battalion Chiefs' Association or the City, negotiations will be reopened on the subject of sick leave incentive programs. 8. Effective January 1, 2000, newly hired/promoted employees shall be placed in salary ranges containing a new entry-level step which shall be 95% of the existing Step A. Concurrently, step advancement rules shall be changed so that the eligibility for all step advancement shall occur at twelve month intervals, subject to other City rules and regulations. The equity increases in July 1999 and July 2000 are intended to re- establish an adequate salary differential between the Battalion Chiefs and their immediate subordinates, Fire Captains. Ten years ago when the City recognized the Battalion Chiefs as a separate bargaining unit, the City established their salaries at about 101/6 more than Fire Captains. This salary differential has eroded over the years to less than one percent. Battalion Chiefs not only supervise the work of their assigned shifts, but they also are responsible for many administrative duties in support of the Fire Chief and the Fire Department's mission and goals. The 2% "equity" adjustment mid year in each of the two years of the proposed contract will move their salaries to an increase differential from their subordinates that is more appropriate. FISCAL EM PACT The cost of this agreement is approximately $11,200 in actual costs for the first year (although the staggered effective dates of the salary increases translate into an annualized cost of $14,000 which is compounded in year two) and $11,100 for the second year, for a two year total of $22,300. The ongoing annual cost at the end of the contract will be $28,000. Funding is available in fund balance for year one (FY 98 -99) costs and will be appropriated for the second year (FY 99 -00) as part of the upcoming financial planning process. ALTERNATIVE Do not approve the resolution and direct staff to negotiate a different successor agreement. This is not recommended as the agreement follows Council's previous instructions and was negotiated by both parties in good faith. Attachments Resolution PLEASE NOTE. A copy of the MOA is available in the Council Reading File. CS-21 RESOLUTION NO. (1999 Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO ADOPTING AND RATIFYING THE MEMORANDUM OF AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND THE SAN LUIS OBISPO CITY FIRE BATTATLION CHIEFS' ASSOCIATION FOR THE PERIOD OF JULY 19 1998 - JUNE 309, 2000 BE IT RESOLVED, that the City Council of the City of San Luis Obispo hereby resolves as follows: SECTION 1. The Memorandum of Agreement between the City of San Luis Obispo and the San Luis Obispo Fire Battalion Chiefs' Association, attached hereto as Exhibit "A' and incorporated herein by this reference, is hereby adopted and ratified. SECTION 2. The Finance Director shall adjust the Personnel Services appropriation accounts to reflect the negotiated compensation changes. SECTION 3. The City Clerk shall furnish a copy of this resolution and a copy of the executed Memorandum of Agreement approved by it to: Warren Stephenson, Battalion Chief, and Ann Slate, Personnel Director. Upon motion of , seconded by , and on the following roll call vote: AYES: NOES: I:`:I•i � 5 d1 the foregoing resolution was adopted this day of ATTEST: City Clerk AJRPROVED AS TO FORM: � 7 �- ity Attorney Mayor Allen Settle ,1999. ra -A