TO:
Honorable Mayor and Members of the City Council
THROUGH:
Mark Danaj, City Manager
FROM:
Teresia Zadroga-Haase, Human Resources Director
SUBJECT:Title
Memorandum of Understanding with the Manhattan Beach Firefighters’ Association (Human Resources Director Zadroga-Haase).
ADOPT RESOLUTION NO. 16-0006
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Recommended Action
RECOMMENDATION:
It is recommended that the City Council adopt by Resolution the attached successor Memoranda of Understanding (MOU) with the Manhattan Beach Firefighters’ Association (Association), effective January 1, 2016 through December 31, 2018. The City Council adoption will authorize the City Manager to execute the MOU and take appropriate actions to carry out the implementation of the MOU.
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EXECUTIVE SUMMARY:
Representatives of the City began meeting in October, 2015 with representatives of the Association on a successor MOU. The previous MOU expired on December 31, 2015. The successor MOU presented herein is for a three-year term, effective January 1, 2016 through December 31, 2018 and contains increases in compensation and other modifications consistent with the direction and authority provided by Council to the City’s negotiating team. The Association reached tentative agreement with the City on January 6, 2016.
FISCAL IMPLICATIONS:
The financial portions of the MOU take effect with the first day of the full payroll period following the adoption of this resolution, which is the payroll period beginning January 23, 2016. The estimated fiscal impact of the negotiated changes to the MOU over the three-year term is:
The fiscal impact breakdown by fiscal year for the three-year contract term is:
FY2015-2016 (6 months): $ 70,794
FY2016-2017: 220,863
FY2017-2018: 382,179
FY2018-2019 (6 months): 240,331
TOTAL $ 914,167
Costs for future fiscal years will be included in the budget process for those fiscal years.
BACKGROUND:
In early 2013 City Council approved a successor MOU with the Association for a term of three years effective January 1, 2013 through December 31, 2015. In August of 2015, the City contacted the Association regarding the commencement of negotiations for a successor MOU.
DISCUSSION:
The City met with representatives of Teamsters and negotiated in good faith for a total of nine (9) meetings, reaching a tentative agreement on January 6, 2016. The City was notified by the Association that the bargaining unit membership ratified this successor MOU on January 8, 2016.
The substantive amendments under the successor MOU for Fire are summarized as follows (costs shown are FY15/16 costs only):
1. MOU Contract Term for three years - January 1, 2016 through December 31, 2018;
2. Salaries - Effective the first full payroll period following adoption of this resolution employees shall receive a 2% increase to base salary, effective the first full payroll period following January 1, 2017 employees shall receive a 2% increase to base salary and effective the first full payroll period following January 1, 2018 employees shall receive a 2.75% increase to base salary (FY15/16 cost of $53,477);
3. Technical Specialty Pays - Various technical specialty pays have been eliminated and added to better reflect current objectives of the Department and the value of services provided to the public.
a. Eliminated: HazMat Specialist, Self-Contained Breathing Apparatus Technician; DMV Coordinator
b. Added: Ocean Rescue, Paramedic Trainer/Life Support Specialist
These are flat rate certification add pays of $73/month which will not automatically increase with base rate compensation increases. The net cost change for the reconfiguration of technical specialty pays for FY15/16 is $14,191. All bargaining unit employees will be limited to a maximum of two Technical Specialty Pays regardless of certifications received.
4. Update the State Fire Marshal Certification categories to reflect State law changes effective January 1, 2017;
5. Increases tuition reimbursement allowance from $2,000 to $3,000 annually. (FY15/16 cost $1,000);
6. Added a reopener to address any issues that may arise during the term of the contract regarding the Affordable Care Act;
7. As soon as administratively possible following the approval of this MOU, the City will begin the process to amend the CalPERS contract to provide for cost sharing in accordance with Government Code section 20516(a). This will allow for any employee contribution toward the City’s pension costs (cost sharing) to be made on a pre-tax basis;
8. Incorporates any previous side letters of agreement; and
9. Elimination of obsolete language and other language cleanup changes.
The compensation increases granted through the proposed MOU equate to approximately 2.5% annually over the three-year term of the agreement as follows:
|
|
Incumbents |
1/2016 |
1/2017 |
1/2018 |
3-Year Total |
|
Fire Association |
26 |
2% |
2% |
2.75% |
6.75% 1 (see footnote) |
1 Additional non-base pay increases included reconfiguring technical specialty pays as described above and tuition reimbursement totaling approximately .75%.
It should be noted that this proposed MOU continues the provisions negotiated during the previous contract negotiations of employees paying the full employee contribution towards retirement costs (9%) and the additional payment of 3% of the City’s retirement contribution as cost sharing for a total of 12% employee contribution towards retirement costs.
This agreement with the Fire Association is comparable to the agreements reached with the two Police bargaining units, which Council approved at your December 15, 2015 meeting, and the agreement reached with Teamsters, which Council approved at your January 5, 2016 meeting.
CONCLUSION:
The MOU presented for City Council approval is the result of collaborative and good faith negotiations between the City and the Association. The agreement provides the City’s valued employees with fair wages and benefits while also maintaining fiscal responsibility. Three-year contract terms provide predictability of costs for budgeting purposes.
Attachments:
1. Manhattan Beach Firefighters’ Association MOU (Redlined)
2. Manhattan Beach Firefighters’ Association MOU (Final)
3. Resolution No. 16-0006