Title
Adoption of Resolution Approving a Memorandum of Understanding (MOU) Between the Alameda Fire Chiefs Association (AFCA) and the City of Alameda for a Twenty-Four Month Term Commencing January 1, 2026, and Ending December 31, 2027. (Human Resources 10025060)
Body
To: Honorable Mayor and Members of the City Council
From: Adam W. Politzer, Interim City Manager
EXECUTIVE SUMMARY
The prior agreement with AFCA, representing approximately five (5) City of Alameda (City) employees, expired on December 31, 2025. Negotiations between the City and AFCA commenced in December of 2025.
The revised Memorandum of Understanding (MOU) submitted for approval represents a twenty-four-month agreement, commencing January 1, 2026, and ending December 31, 2027, and includes increases to base salary through step additions and adjustments, and Base Revenue Index (BRI) Salary Adjustments in January 2027. The proposed MOU additionally provides an increase to Management Incentive Pay, expansion of education reimbursement, an increase to Paramedic Assistant Differential pay clarifying and updating outdated provisions, and updating language for CalPERS compliance. Elements of the proposed MOU are summarized below.
AFCA members have ratified this agreement.
BACKGROUND
The City has nine labor groups and administers two compensation plans. This includes four Public Safety groups and five miscellaneous groups.
The agreements with the seven miscellaneous groups, two Public Safety groups, and the two Compensation Plans expired in June of 2025. The agreements with two fire Public Safety groups expired in December 2025.The City has now reached agreement with the Alameda Police Officers Association (APOA), Alameda Police Officers Association: Non-Sworn (PANS), Management and Confidential Employees Association (MCEA), the Alameda City Employees Association (ACEA), Alameda Police Managers Association (APMA), the International Association of Firefighters, Local 689 (IAFF), the International Brotherhood of Electrical Workers, Local 1245 (IBEW) and the Electrical Utility Professionals Association (EUPA).
DISCUSSION
Proposed MOU wage increases for the term of the MOU will be based on the BRI, defined as one-half (i.e., 50%) of the year-over-year growth measured between successive fiscal years of the combined dollar amount of the following four (4) Alameda taxes: Property tax, 1% Bradley-Burns Sales Tax, Utility Users Tax, and Transient Occupancy Tax. The minimum base wage increases will be 1% and the maximum will be 5%. The MOU provides base wage increases as follows:
• Following the finalized BRI calculation from fiscal year 2023-2024 and 2024-2025, an increase to base wages of 1.16% will be effective first full pay period following approval by City Council.
• Wage increase for 2027 will be based on BRI from fiscal year 2024-2025 and 2025-2026, with the minimum increase of 1% to base wages taking effect the first full pay period following January 1, 2027.
The proposed MOU provides uniform allowance increases from $2,120 to $2,185 effective the first full pay period following approval by City Council , and $2,250 in January 2027. Additionally, Paramedic Assistant Differential Pay will increase from 4% of top step Firefighter, to 2.5% of top step for Division Chief.
The City and AFCA agreed to condense Management Incentive Pay (MIP) into one level, from three levels, and increase total percentage to 10.50% of base rate plus applicable longevity/retention benefit from 9.25% of base rate plus applicable longevity/retention benefit.
To support continuing education, the City and AFCA agreed to expand the education reimbursement through a new section that will reimburse members up to $1,250 per fiscal year on courses and training that are directly related to duties and functions of the positions and operations.
The proposed MOU also adds Juneteenth as an observed holiday, aligning with City recognized holidays, adds City match for deferred comp up to 1% for eligible members, update bilingual pay differential to $100 per month, increases the number of excused employees as association representative, provides arbitration cost sharing when an advisory arbitration decision is not accepted by the City Manager and the funeral leave provision was expanded to include additional immediate family members.
The City and AFCA also agreed on language updates to clarify, comply with the law, and/or codify current practice regarding working hours, holiday-in-lieu, suppression language and retirement.
ALTERNATIVES
City Council may consider a number of alternatives, including:
• Approve the resolution as recommended. The City has bargained in good faith with AFCA and reached a successor agreement that provides modest wage increases, updates to incentive pays and workplace improvements.
• Deny the resolution. Staff does not recommend as it would trigger a delay in implementing a successor MOU that has been ratified by the bargaining unit.
FINANCIAL IMPACT
The financial impact of implementing salary and other special pay changes agreed to in the AFCA MOU are shown in Table 1 below.
Table 1
The cost of increased Uniform Allowance is expected to be approximately $818 annually. Education reimbursement is approximately $6,250 annually. It is anticipated that additional fiscal year costs will be included in future fiscal year budgets.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action is consistent with the Alameda Municipal Code.
ENVIRONMENTAL REVIEW
This action does not constitute a “project” as defined in California Environmental Quality Act (CEQA) Guidelines Section 15378 and therefore no further CEQA analysis is required.
CLIMATE IMPACT
There are no identifiable climate impacts or climate action opportunities associated with the subject of this report.
RECOMMENDATION
Adopt a resolution approving a Memorandum of Understanding (MOU) between the Alameda Fire Chiefs Association (AFCA) and the City of Alameda for a twenty-four month term commencing January 1, 2026 and ending December 31, 2027.
Respectfully submitted,
Noelle White, Human Resources Director
By,
Danyelle Rodriguez, Human Resources Analyst II
Financial Impact section reviewed,
Ross McCarthy, Finance Director
Exhibits:
1. Memorandum of Understanding between AFCA and the City of Alameda, January 1, 2026 through December 31, 2027 - Redline
2. Memorandum of Understanding between AFCA and the City of Alameda, January 1, 2026 through December 31, 2027 - Clean
3. AFCA Salary Schedule, Effective April 19, 2026