Title
A. RESOLUTION NO. 2014-226 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A MEMORANDUM OF UNDERSTANDING ("MOU") BETWEEN THE CITY OF CHULA VISTA AND THE INTERNATIONAL ASSOCIATION OF FIREFIGHTERS AFL-CIO LOCAL 2180 BARGAINING UNIT ("IAFF") RELATED TO COMPENSATION AND OTHER TERMS AND CONDITIONS OF EMPLOYMENT; AUTHORIZING THE CITY MANAGER TO EXECUTE THE MEMORANDUM OF UNDERSTANDING AND ANY NECESSARY DOCUMENTS AS MAY BE REQUIRED TO IMPLEMENT THE MEMORANDUM OF UNDERSTANDING; AND APPROPRIATING FUNDS ACCORDINGLY (4/5 VOTE REQUIRED)
B. RESOLUTION NO. 2014-227 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE REVISED FISCAL YEAR 2014/15 COMPENSATION SCHEDULE AS REQUIRED BY CALIFORNIA CODE OF REGULATIONS, TITLE 2, SECTION 570.5
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RECOMMENDED ACTION
Recommended Action
Council adopt the resolutions.
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SUMMARY
The most recent Memorandum of Understanding ("MOU") between the City of Chula Vista and the International Association of Firefighters AFL-CIO Local 2180 (IAFF) expired June 30, 2013. During the last year and a half, negotiating teams representing IAFF and the City have worked collaboratively, and in good faith, toward the development a mutually beneficial MOU. A tentative agreement was reached by the negotiating teams on compensation and other terms and conditions of employment. Staff is recommending approval of the MOU.
Staff is also recommending an appropriation to the Fiscal Year 2014/15 budget to address salary changes effective the pay-period following ratification by IAFF membership and City Council approval of the MOU, and approval of the revised Compensation Schedule to reflect the salary change.
ENVIRONMENTAL REVIEW
The Development Services Director has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project" as defined under Section 15378(b) (2) of the State CEQA Guidelines because it is a personnel related action; therefore, pursuant to Section 15060(c) (3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary.
BOARD/COMMISSION RECOMMENDATION
NA
DISCUSSION
I. Memorandum of Understanding Between City and IAFF
The most recent Memorandum of Understanding ("MOU") between the City of Chula Vista and the International Association of Firefighters AFL-CIO Local 2180 ("IAFF") expired June 30, 2013. During the last year and a half, negotiating teams representing the City and IAFF have worked collaboratively toward the development of a mutually beneficial MOU.
Representatives of the City and IAFF have met and conferred in good faith, as required by the Meyers-Milias-Brown Act (Govt. Code Section 3500 et. seq.; "MMBA"), and reached a tentative agreement on the attached MOU with regards to compensation and other terms and conditions of employment. Below are the major highlights of the MOU:
1. MOU Term: The term of the MOU shall be from ratification by IAFF and approval of the MOU by the City until June 30, 2017. The City may reopen the MOU if it declares a fiscal emergency.
2. Compensation:
A. IAFF members shall receive the following salary adjustments:
· 2% in the full pay period following ratification by IAFF and City Council Approval of the MOU
· 2% in the first full pay period of July 2015
· 2% in the first full pay period of July 2016
B. A one-time stipend in the amount of $1268, in lieu of start-up costs and monthly payments into a Retiree Medical Trust ("RMT"), in the first full pay period after ratification by IAFF of and approval of the MOU by the City Council
C. A reopener during the period of September 1, 2015 to December 31, 2015 on the issue of salary increases for Fiscal Year 2016-2017
D. Out-of-County Strike Team Compensation, including a $50 stipend for each full, consecutive, and complete 24 hour period in which IAFF members are deployed on strike team.
E. Incorporation of prior City Pension Reform from side letter into MOU and addition of Third Retirement Tier to implement mandates of California Public Employee Pension Reform Act (AB 340; "PEPRA")
F. Bilingual Pay - the establishment of two tiers for basic and advanced proficiency. The basic level will receive $125 per month and the advanced level will receive $225 per month. Current recipients of bilingual pay will continue at their current pay structure until they elect to test for the advanced level or their certification expires.
3. Terms and Conditions of Employment:
A. Agreement as to continued use of Constant Minimum Staffing model
B. Rest and Recovery provisions for Fire Inspector/Investigator classifications
C. Study of Compensatory Overtime ("CTO") use and reopener on issue during September 1, 2015 to December 31, 2015 time period
D. Release Time provisions as required by Government Code section 3503.3
The proposed salary and benefit enhancements were ratified by a majority of IAFF members.
Staff recommends approval of the MOU (Resolution A), which is attached to this report.
II. FY 2014-15 Budget Amendment
The proposed MOU will require an amendment to the FY 2014/15 Budget as discussed further below.
III. Compensation Schedule
California Code of Regulations, Title 2, Section 570.5 requires that, for purposes of determining a retiring employee's pension allowance, the pay rate be limited to the amount listed on a pay schedule that meets certain requirements and be approved by the governing body in accordance with the requirements of the applicable public meeting laws. The Fiscal Year 2014/15 Compensation Schedule ("Compensation Schedule") was originally approved by the City Council at their meeting of July 8, 2014 and most recently revised on November 4, 2014.
Approval of Resolution C will approve the revised Compensation Schedule to reflect the salary adjustment for the International Association of Firefighters AFL-CIO Local 2180 effective December 12, 2014, in compliance with California Code of Regulations, Title 2, Section 570.5.
DECISION-MAKER CONFLICT
Staff has reviewed the decision contemplated by this action and has determined that it is not site specific and consequently, the 500-foot rule found in California Code of Regulations section 18704.2(a)(1), is not applicable to this decision. Staff is not independently aware, and has not been informed by any Council member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter.
LINK TO STRATEGIC GOALS
The City's Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. These changes support City Initiative 1.2.3 Retain and attract quality employees under the Operational Excellence goal. Employee compensation is instrumental to recruiting and retaining quality employees.
CURRENT YEAR FISCAL IMPACT
The fiscal year 2014-15 implementation costs related to this agreement are estimated at $383,543. These costs will be offset by unanticipated General Fund revenues. Approval of the resolution will result in the appropriation of $383,543 to the Fire Department's fiscal year 2014/15 personnel services budget.
ONGOING FISCAL IMPACT
The annualized costs related to the IAFF agreement will be incorporated into the fiscal year 2015-16 baseline budget and will be brought to Council for approval as part of the annual budget process.
The Five Year Financial Forecast presented to the City Council in May 2014 has been updated to reflect more current revenue and expenditure trends. The MOU agreements with POA and IAFF have both been incorporated into the forecast. The forecast has also been updated to reflect various budget appropriations that have been approved since the beginning of the fiscal year. Revenues have been updated to reflect changes in trends as reported in the First Quarter Financial Report. Most significantly, assessed values improved at higher levels than assumed in the Council adopted budget and franchise fees have also increased resulting in unanticipated revenues.
Five Year Financial Forecast Summary
As summarized in the above table, the City projects that it will be able to absorb the costs of the IAFF agreement in the current fiscal year. The City projects a growing deficit starting in fiscal year 2016, which may require changes to the baseline budget going forward. Staff will continue to monitor revenue and expenditure assumptions and make specific recommendations to balance fiscal year 2016 as part of the budget development process.
As presented, the Five Year Financial Forecast includes the following key assumptions over the forecast period:
· Sustained modest economic growth and no adverse economic down turns
· Projected revenue growth in alignment with stable economic conditions
· Status quo expenditure growth with no major cost/program initiatives.
ATTACHMENTS
(1) Memorandum of Understanding (MOU) between International Association of Firefighters AFL-CIO Local 2180, December 2, 2014 - June 30, 2017
(2) Revised Fiscal Year 2014/15 Compensation Schedule
Staff Contact: Irene Mosley