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Home My WebLink About07/17/2001, C12 - MEMORANDUM OF AGREEMENT WITH THE INTERNATIONAL ASSOCIATION OF FIREFIGHTERS, LOCAL 3523, FOR THE PER council Mama- 11 -01 j acEnOA REpont '�K.b., CITY OF SAN LUIS O B I S P O FROM: Wendy George,Assistant City Administrative Officer ivJ SUBJECT: MEMORANDUM OF AGREEMENT WITH THE INTERNATIONAL ASSOCIATION OF FIREFIGHTERS, LOCAL 3523, FOR THE PERIOD JULY 1, 2001 THROUGH DECEMBER 31, 2005 CAO RECOMMENDATION uNCIL El COD DIR ❑ FIN DIR ACAd4IRE CHIEF Adopt a resolution approving the Memorandum of Agreement. IR-ATTORNEY ❑ PW DIR LERK10RIG ❑ POLICE CHF DISCUSSION ❑PW FADS ❑ Rec DIR 0' lyTR DIR OR Background The Memorandum of Agreement (MOA) between the City and the International Association of Firefighters, Local 3523 (Union) expired on June 30, 2001, after a term of two years. As provided for in that agreement, the City's negotiating team (Bill Avery, chief negotiator, Wendy George, Assistant CAO, Karen Jenny, Risk Manager and Darren Drake, Fire Marshal) entered into negotiations with the Union's negotiating team, (Tony Spitileri, chief negotiator, Jeff Zimmerman, Greg Otto, Jerry James and Mike King) on March 6, 2001,_ to develop a successor agreement. The team met with the union for a total of four formal sessions, with a number of informal meetings between the two outside negotiators. As a result of those meetings, a tentative agreement has been reached with the Union and ratified by a majority of its membership. RECEIVED Proposed Package JUL 17 2001 1. Term: Four and one-half(4-1/2) years SLO CITY COUNCIL 2. Salary: 5% in July 2001 3% in July and 2% in January each year thereafter (no increase July 2005) 3: Retirement: 3% @.55 as soon as possible 3 % @ 50, single highest year effective 12/31/05 4. Salary Steps: 6 steps — 12 months between steps. First step 10% below second; all other steps 5% apart. (This eliminates the four lower steps added several years ago and replaces them with a single entry level step. There is a transition plan into the new ranges for employees currently in the lowest four steps.) 5. Paramedic Pay: Increase by $20 to $420/month in year two. 9% of top Firefighter salary in year 3. �/a'/ Council Agenda Report—Fire Union MOA Page 2 6. Cafeteria Plan: $40 increase in July 2001; $30 increase January 2002. Thereafter, the average increase of the available PERS HMO plans. 7. Hazmat Pay: 3%of top step Firefighter salary This economic package averages out to a total annual compensation cost of 5.21% over the 4-1/2 years of the contract. However, this cost does not include adding the 3% @ 50 retirement plan on the last day of the contract. There were also a number of tentative agreements reached on issues relating to working conditions that do not have any fiscal impact. Among the more significant are: 1. Extending the residency requirement to allow safety employees to live one hour or 50 miles away from the City. Currently, the maximum is 40 minutes or 36 miles away. The Fire Chief has indicated that such a change will not affect the department's ability to adequately deliver service. 2. Cleaning up language in a number of articles so that they reflect current work scheduling practices of eight 24-hour shifts within a 24-daywork cycle. 3. Limiting the length of time an employee can stay on a re-employment list after a layoff from indefinite to two years. 4. Allowing probationary employees trained as paramedics to act in that capacity with approval of appropriate departmental staff. Minimum Staffing Change Additionally, we are proposing that the minimum safety staffing level per shift be raised at the beginning of next fiscal year from the current 12 to 13. By making this increase, we will guarantee that there will be 3-person engine companies at all stations at all times (3 persons x 4 stations), plus the shift Battalion Chief. The Fire Chief has long supported this increase, and we included language in the last Memorandum of Agreement indicating the City's support of the concept. It also allows the City to meet what is the commonly accepted standard for engine companies in most communities. There is a cost to making this change. While it is difficult to accurately quantify how great that cost might be, since it comes in the form of increased overtime to maintain the standard, we estimate it could run as high as $100,000 annually. However, we won't know until several months into next fiscal year (2002-03) when we have some actual experience with the new staffing. In any case, this should be viewed as a needed service level improvement that is not a part of the MOA's economic package. iia-z i Council Agenda Report—Fire Union MOA Page_3 FISCAL IMPACT Compensation Increases During the MOA Term The cost of the agreement is $273,000 for fiscal year 2001-02 and another $169,800 for fiscal year 2002-03, excluding the potential overtime increase from raising required_minimum staffing. These amounts are greater than what is currently budgeted for Fire Union contract costs in the Financial Plan by about $95,000 annually. Staff will be reviewing the impact of these costs on our total salary assumptions in the Financial Plan and will propose adjustments, if necessary, as part of the 2001-02 Mid-Year Budget Review The additional cost of the package for 2003-04 is $183,800 and for 2004-05 it is another $192,200. These increases will be included in the 2003-05 Financial Plan. Minimum Staffing Costs It is difficult to determine the potential cost of overtime that may result from increasing required minimum staffing, although it could range as high as $100,000 per year beginning in 2002-03. If additional overtime funding is needed starting next fiscal year; it will also be included in the 2002-03 Financial Plan Supplement:. Retirement Benefits Finally, while there is no cost to the City for the change in the Public Employees Retirement System (PERS) plan to 3% @ 55, there will be a cost when the plan changes to 3% @ 50 on the last day of the contract. Determining this cost is difficult; since it based on a number of factors that cannot be reasonably evaluated at this time, including PERS investment earnings. However, based on the best information available to us now, it is likely to be significant, ranging between 5% and 18%. ALTERNATIVE Do not approve the resolution and direct staff to negotiate a different successor agreement. This alternative is not recommended, as the agreement is consistent with the Council's previous direction and the City's employer-employee relations policies. ATTACHMENTS Resolution A copy of the MOA is provided for Council Members in the Council Reading File, and is available to the public in the City Clerk's Office. Cla� RESOLUTION NO. (2001 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 INTERNATIONAL ASSOCIATION OF FIREFIGHTERS, LOCAL 3523, FOR THE PERIOD OF JULY 1,2001 —DECEMBER 31, 2005 BE IT RESOLVED by City Council of the City of San Luis Obispo as follows: SECTION 1. The Memorandum of Agreement 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 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: Jeff Zimmerman, International Association of Firefighters, Local 3523 and Wendy George, Assistant City Administrative Officer. Upon motion of , seconded by and on the following roll call vote: AYES: NOES: ABSENT: the foregoing resolution was adopted this day of , 2001. ATTEST: Lee Price, City Clerk Mayor Allen Settle APPROVED AS TO FORM:. WeftAoryhs , Ci Attorney r✓' !off-�{