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Report regarding a resolution approving the Memorandum of Understanding for the International Association of Firefighters, Local 1507 Unit, dated July 1, 2017 through June 30, 2022. (LaTanya Bellow, Human Resources Director)
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RECOMMENDATION
Recommendation
It is recommended that the City Council adopt a resolution approving the Memorandum of Understanding (MOU) for the International Association of Firefighters (IAFF), Local 1507 Unit dated July 1, 2017 through June 30, 2022.
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BACKGROUND/DISCUSSION
The MOU was negotiated between December 2016 and June 2017, within the parameters authorized by the City Council and has been ratified by the unit’s membership. Attached is the summary of changes indicating the substantive terms of the MOU.
FUNDING
The MOU provides for across-the-board salary adjustments that total 15 percent over a five-year contract. Specifically, adjustments are three percent of base pay effective the pay period including July 1, 2017. The across-the-board increases have been reflected in the Fiscal Year (FY) 2017-18 proposed budget:
• Effective the first full pay period July 2018, three percent,
• Effective the first full pay period July 2019, members will be set to the 60th percentile of a market survey, or three percent, whichever is greater,
• Effective the first full pay period of July 2020, three percent,
• Effective the first full pay period of July 2021; three percent.
The MOU also provides for a salary survey adjustment effective the pay period including July 1, 2019. The salary survey will include the medical premium cost sharing and the three percent increase anticipated for July 1, 2019. Any classifications below market shall be brought up to the 60th percentile of total compensation. Once the salary survey results have been implemented, staff will determine if a budget adjustment is needed, and bring before the Council at the appropriate time.
The MOU provides long-term structural changes in the City’s Safety pension costs. The City currently pays 100 percent of the employer share for the CalPERS pension costs for Classic Members. For the first time, in addition to the Classic Safety Member’s nine percent employee share for their CalPERS pension retirements, all Classic CalPERS Members will share in the employer pension costs. For the Local 1507 unit Safety Members, the employee cost share would be phased in at one percent effective the first pay period in July 2017 (for a total employee contribution of 10 percent), an additional one percent effective the first fully pay period in July 2018 (for a total employee contribution of 11 percent), and an additional one percent effective the first fully pay period in July 2019 (for a total employee contribution of twelve percent). Effective July 1, 2020, the employees will be obligated to pay three percent of the employer rate, plus nine percent of the employee contribution for a total employee commitment of twelve percent. New Members, as designated by CalPERS shall pay fifty percent of the total normal cost rate, in accordance with Government Code 7522.30. Pursuant to CalPERS procedures, staff will work with CalPERS after adoption of this MOU to draft a CalPERS contract amendment to allow for this cost sharing. Staff will bring Resolutions to the City Council to effectuate that contact amendment as soon as it receives the appropriate filings from CalPERS.
CONCLUSION
It is recommended that the City Council Approve the MOU for the International Association of Firefighters, Local 1507 dated July 1, 2017 through June 30, 2022.
ATTACHMENT: IAFF -Summary of Changes