TITLE
Recommendation to adopt resolution approving the 2016-2019 Memorandum of Understanding with the Long Beach Firefighters Association. (Citywide)
DISCUSSION
In accordance with instructions from the City Council, a Memorandum of Understanding (MOU) agreement has been reached with the Long Beach Firefighters Association (FFA) bargaining unit. The FFA represents approximately 350 sworn employees in ranks of Firefighter through Battalion Chief.
Since May 2016, City management and FFA representatives have held 13 negotiation sessions along with numerous joint salary survey meetings regarding their open MOU, which expired on September 30, 2016. A tentative agreement has been reached and jointly signed by representatives of the City and the FF A.
The joint salary survey results indicated that the City ranked on the lower end compared to other agencies in the region. The salary survey included the following agencies: Anaheim, Glendale, Huntington Beach, Los Angeles City and County, Orange County, Pasadena, Santa Monica, and Torrance. The proposed agreement provides for salary increases and incentives aimed at improving workforce productivity and skill levels, as well as provisions to address healthcare costs and economic uncertainties.
The proposed MOU is for a three-year agreement from October 1, 2016 through September 30, 2019, and includes the following major provisions:
1. General Wage Increase:
• 3 percent effective October 1, 2016
• 3 percent effective October 1, 2017
• 3 percent effective October 1, 2018
2. Skill Pay Adjustments:
a. Align the Fire Boat Operations Assignment and Qualified Relief Program skill pay and the Aircraft Rescue and Fire Fighting (ARFF) skill pay with other current programs of Hazardous Materials (HazMat) and Urban Search and Rescue (USAR). This change will be partially offset by the elimination of the current monthly stipends.
b. Add a Paramedic Preceptor Program per diem skill pay at a rate of 10 percent top step Firefighter base hourly rate (equivalent to approximately $3.84/hour). This program will incentivize current paramedics to perform as in-house paramedic trainers.
c. Add a Firefighter II Certification Program skill pay at a rate of 3 percent of top step Firefighter base hourly rate for Firefighters that meet the California State Fire Training Program requirements, and have six years of service or more as a Firefighter.
d. Conversion of Education Pay from a flat dollar amount to a percent of Firefighter Step 5 hourly rate.
3. Fire Boat Operator - The Fire Boat Operator job classification will be retitled to Fire Boat Pilot and the salary will increase to Salary Range 140.
4. Twenty-Year Longevity Pay - Effective after the first full pay period after adoption by the City Council of the successor MOU, Firefighters with 20 years of service will be eligible for an additional compensation of 5 percent top step Firefighter base hourly rate. This amount is in addition to the current Longevity Pay provisions of 5 percent for 10 years of service and 10 percent for 15 years of service.
5. Healthcare - The formula for employees' contribution towards healthcare costs is slightly adjusted to increase the employee portion. The maximum cap for increases to family coverage was raised from $25 to $30 and the employee premium share formula was adjusted to allow the City to place amounts over the cap into a bank that can be applied to the employee rates in the future. In addition, FFA agreed to work through the Health Insurance Advisory Committee (HIAC) to manage employee benefit costs increases.
6. Surviving Spouse Death Benefit - Provides continuation of health insurance benefits for surviving spouse and/or eligible dependents of Firefighters deceased as a result of their employment.
7. Economic Crisis Provision - Allows the City to re-open the MOU if the City faces a fiscal hardship as defined by Long Beach Municipal Code Section 3.94.030.C. Changes to the MOU provisions must be based on mutual agreement.
8. Letters of Agreement Non-Economic - The City agrees to provide FFA with the total compensation analysis, if requested by POA, conducted pursuant to the 2016 to 2019 POAMOU.
This matter was reviewed by Principal Deputy City Attorney Gary J. Anderson on April 7, 2017 and by Assistant Finance Director Lea Eriksen on April 5, 2017.
TIMING CONSIDERATIONS
City Council action is requested on April 18, 2017, to ensure timely implementation of the MOU provisions.
FISCAL IMPACT
This agreement has a total estimated annual net fiscal impact of $7.2 million in the General Fund (GF) and $8.0 million across All Funds once completely implemented in FY 19. The FY 17 portion of the cost is $3.3 million in the General Fund (GF) and $3.9 million across All Funds. It is projected that there will be no impact to the FY 17 All Funds budget as the FY 17 costs will be covered by higher than expected revenues, vacancy savings, and additional funding achieved from taking less conservative budgetary actions, such as reducing charges for insurance and funding for unfunded retirement liabilities. Costs for FY 18 and FY 19 will be addressed as part of those annual budget processes. There is no local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
BODY
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Respectfully Submitted,
ALEJANDRINA BASQUEZ
DIRECTOR OF HUMAN RESOURCES
APPROVED:
PATRICK H. WEST
CITY MANAGER