File #: 2020-8470   
Type: Consent Calendar Item
Body: City Council
On agenda: 12/1/2020
Title: Adoption of Resolution Approving an Amendment to the Memorandum of Understanding between the City of Alameda and the International Association of Firefighters, Local 689, Extending the Term through December 19, 2023. (Human Resources 2510)
Attachments: 1. Exhibit 1 - Tentative Agreement, 2. Resolution, 3. Correspondence

Title

 

Adoption of Resolution Approving an Amendment to the Memorandum of Understanding between the City of Alameda and the International Association of Firefighters, Local 689, Extending the Term through December 19, 2023.  (Human Resources 2510)

 

EXECUTIVE SUMMARY

 

The Memorandum of Understanding (MOU) with the International Association of Firefighters (IAFF) is set to expire on December 18, 2021.  The City of Alameda (City) and IAFF have met to discuss the extension of this agreement through December 19, 2023.

 

The City and IAFF have now agreed to terms for a contract extension. The agreement will be extended by 24 months to December 19, 2023.  IAFF will forgo the 2% salary increase they are eligible to receive in January 3, 2021. IAFF Local 689 will instead receive a 2% increase at the start of the first pay periods in January of 2022 and January of 2023. The City will also continue to increase the uniform allowance provided to Firefighters by $40 a year during the term of the extension.

 

There will be no other changes to the terms and conditions of the labor agreement.

 

BACKGROUND

 

The term of the current agreement with IAFF is December 17, 2015 to December 18, 2021. Given the ongoing COVID-19 pandemic the parties believe extending the agreement is in the best interest of both parties.

 

DISCUSSION

 

The current MOU between the City and IAFF is set to expire on December 18, 2021. When this agreement was reached in 2015, the City and IAFF had worked together to establish the Other Post-Employment Benefits or OPEB Trust (Trust) for the purpose setting aside and accumulating funds to be used toward the payment of OPEB benefits. IAFF Members hired prior to June 2011 who continue to have spousal coverage contribute 4% of the top step of their base salary to the Trust. IAFF Members hires after 2011 and do not have spousal coverage contribute 2%. This contribution was to be evaluated when the contract expired. This contribution will continue as part of the continuation of all terms and conditions of the contract.

 

The contract extension will include updates to salary, uniform and term as outline below:

 

                     Salary increases: IAFF will forgo the 2% salary increase they are eligible to receive in January 3, 2021. IAFF will instead receive a 2% increase at the start of the first pay periods in January of 2022 and January of 2023:

 

 

                     The uniform allowance identified in Section 15 of the MOU will continue to increase by forty dollars ($40) a year:

 

                     The term of the agreement will extend to December 19, 2023.

 

FINANCIAL IMPACT

 

Labor costs for IAFF members are primarily paid for by the City’s General Fund, with some firefighter positions funded by SAFER grants.

 

The annual cost of a 1% salary increase for IAFF is approximately $174,000. This includes increases in CalPERS cost, FICA and special pays that are based on a percentage of pay. By foregoing the 2% increase on January 3, 2021, this agreement will result in a savings of approximately $174,000 during the remainder of Fiscal Year 2020-21, representing savings for the last six months of the fiscal year.  The cost of the 2% increase in Fiscal Years 2021-22 and 2022-23 will be subject to future City Council approval for appropriations.

 

MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE

 

There is no impact to the Alameda Municipal Code from the adoption of this resolution

 

CLIMATE IMPACTS

 

There are no identifiable climate impacts or climate action opportunities associated with the subject of this report.

 

ENVIRONMENTAL REVIEW

 

This action is exempt from the California Environmental Quality Act (CEQA) because it is not a project which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, pursuant to CEQA Guideline section 15378.

 

RECOMMENDATION

 

Adopt a Resolution approving an amendment to the Memorandum of Understanding between the City of Alameda and the International Association of Firefighters, Local 689, extending the term through December 19, 2023.

 

CITY MANAGER RECOMMENDATION

 

The City Manager concurs with the staff recommendation.  This represents a saving of approximately $174,000 this Fiscal Year and represents a 1 year annualized saving of $348,000.  In addition, this represents a continuation of the pension agreement with IAFF for the two year extension.  This agreement was in consideration of the current economic situation.

 

Respectfully submitted,

Nancy Bronstein, Human Resource Director

 

Financial Impact section reviewed,

Annie To, Finance Director

 

 

Exhibit:

1.                     Tentative Agreement

 

cc: Eric Levitt, City Manager