TITLE
Recommendation to adopt resolution approving the 2019-2022 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 408 employees in the Firefighters Association Basic and Supervisory units.
Since May 2019, City management and FFA representatives have held 8 negotiation sessions regarding a new MOU. The current MOU expired on September 30, 2019. A tentative agreement has been reached and jointly signed by representatives of the City and FFA.
The tentative agreement contains key benefit enhancements, such as a paid parental leave program, one additional holiday, and modification of holiday and vacation accruals that enhance employees’ ability to balance work and personal lives.
Tentative Agreement Major Provisions:
The proposed MOU is for a three-year agreement from October 1, 2019 through September 30, 2022, and includes the following major provisions:
1. General wage increases in the pay period that includes the following dates:
• 3 percent effective October 1, 2019
• 3 percent effective September 30, 2021
• 3 percent effective April 1, 2022
2. One-Time Payment: Effective October 1, 2020, all permanent full-time bargaining unit members (excluding Fire Recruit and Fire Safety Specialist-NC) receive a $2,000 one-time payment.
3. Battalion Chief - Additional Step: Effective October 1, 2020, an additional step (Step 6) will be added to the classification of Battalion Chief and shall be equivalent to 2.5 percent above the Step 5 base hourly rate of the Battalion Chief classification.
4. During the term of the agreement, upon request from either the City or FFA the parties will meet and confer in good faith regarding possible adjustments as it relates to CalPERS pension reform. Any changes to the MOU as a result of the reopener will be based on mutual agreement.
5. Skill Pays:
a. Hazmat First Responder Operations Pay: Effective October 1, 2020, employees in the classification of Firefighter, Fire Engineer, Fire Boat Pilot, Fire Captain, and Battalion Chief will be eligible to receive Hazmat First Responder Operations Pay in the amount of 1 percent of top step Firefighter.
b. Bilingual Pay Increase: Effective October 1, 2020, the Bilingual Pay for Fire Bargaining Unit members will increase from $0.80 per hour to $1.20 per hour. This change is an effort to support the City’s Language Access provision, which establishes standards and procedures for providing equal access services and programs to all residents, including those with limited proficiency in English.
c. Emergency Apparatus Skill Pay: Effective October 1, 2020, the Emergency Apparatus Pay applicable to the Fire Engineer classification will be converted from a $30.00 monthly flat rate to 3 percent of top step Firefighter.
d. Fire Prevention Skill Pay: Effective October 1, 2020, the Fire Prevention Pay applicable to the Firefighter and Fire Engineer classification will increase from 5 percent to 6 percent of top step Firefighter.
e. Battalion Chief Certification Pay: Effective October 1, 2020, Battalion Chiefs possessing a certificate, as defined in Appendix B (FFA MOU), for USAR, HAZMAT, ARFF, Fire Prevention, or Fire Boat operations will receive an additional compensation of 1.5 percent of top step Firefighter base hourly rate. Battalion Chiefs will only be eligible for a maximum of one certification in the program areas indicated.
6. Additional City Holiday: In 2021, employees will receive one additional paid City holiday, to be determined by the City Council.
7. New Paid Parental Leave: Full-time employees eligible for City health benefits who have completed six months of full-time City service will be eligible for up to 30 consecutive days (160 hours - 4/10 shift; 192 hours - platoon shift) of Paid Parental Leave following the birth of a child, adoption of a child, or placement of a foster child in their home.
8. Vacation and In-Lieu Accrual Maximum: In 2021, the City will implement revised vacation and in-lieu holiday accrual maximums. This will provide greater clarity on the accruals and accommodate the City’s LB Coast HR system requirements. New employees may utilize accrued vacation hours upon completing six months of employment versus the current 12-month wait period.
9. A Joint Labor Management Committee (LMC) between the Department of Human Resources, Long Beach Firefighters Management and LBFFA will convene to discuss issues related to the behavioral health benefits and services provided by Employee Assistance Plan (EAP) in effort to improve services.
This matter was reviewed by Deputy City Attorney Monica J. Kilaita on October 9, 2019 and by Budget Manager Grace H. Yoon on October 8, 2019.
TIMING CONSIDERATIONS
City Council action is requested on October 22, 2019, to ensure timely implementation of the MOU provisions.
FISCAL IMPACT
As shown in the table below, the total cost for this three-year agreement is estimated to be $10.17 million for the General Fund Group and $10.26 million for All Funds. The total structural (ongoing) cost increase resulting from the agreement is estimated to be $9.37 million in the General Fund Group and $9.45 across All Funds. There is also a one-time payment in FY 21 estimated at $800,000 in the General Fund Group and $810,000 across All Funds. The table shows the breakdown of these costs by fiscal year. While the agreement is for FY 20 through FY 22, there are new structural cost increases that will impact FY 23 as a result of the mid-year raise that occurs in FY 22.
The net structural costs in FY 20 ($2.51 million in the General Fund Group and $2.53 All Funds) are expected to be funded from one-time sources, as the proposed FY 20 budget has already been adopted. City management expects to identify one-time revenues in FY 20, if adequate sources are not available, the City has sufficient balance available in the operating reserve. The one-time costs in FY 21 ($800,000 in the General Fund Group and $810,000 in All Funds) will also be funded from one-time sources, presumably from FY 20 year-end savings.
For FY 21, the City is expected to structurally include both the FY 20 and FY 21 structural costs into the operating budget (total of $4.03 million in the General Fund Group and $4.06 million All Funds) and will make any necessary adjustments to incorporate these costs. For FY 22 and FY 23, similar steps will be taken. This recommendation has a moderate staffing impact to implement the payroll changes but is within the normal budgeted scope of duties and is consistent with existing City Council priorities. There is no local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
BODY
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Respectfully Submitted,
ALEJANDRINA BASQUEZ
HUMAN RESOURCES DIRECTOR
APPROVED:
THOMAS B. MODICA
ACTING CITY MANAGER