A 2-year labor contract with the International Association of Firefighters (IAFF) Local 521 was approved by Local 521 members in April 2012, and is ready for ratification by the City Council. 

The contract amendments tentatively agreed to by IAFF members and staff include the following:

• 0% cost of living adjustment (COLA) for fiscal year (FY) 2011 and a 2.5% COLA for FY12 for IAFF employees, the same increases as the Council previously approved for the same period for the Montana Public Employees Association - Billings Police Chapter, Teamsters - Local 190 and the Non-bargaining employees.
• A $950 City contribution per IAFF employee in each year of the contract toward either ICMA or Nationwide 457 deferred compensation plans, as selected by the employee;
• Currently, IAFF has the benefit of retirement to the City's health insurance contribution and this benefit would be capped at the City's contribution or $800 per employee per month, whichever is less, on January 1, 2012.  If on January 1, 2013, the City's monthly contribution to health insurance is greater than $800, then the City will agree to reopen Article VII - Fringe Benefits, B. Insurance(s), 1.e. to discuss this section regarding retirement paid on the City's share of monthly health insurance contributions.
• For IAFF employees hired on or after 7/1/2012, longevity pay will be paid from the beginning of his/her 6th year of employment.  Prior to this change longevity began at the completion of year one (1).
• Advanced EMT 6th endorsement will be paid at $10 per month.
• IAFF employees holding an Associates degree from an institution of higher learning recognized as accredited in the United States will receive $25 per pay period.  IAFF employees holding a Bachelors degree or higher will receive $50 per pay period.  If employees hold both degrees, then they will be paid for the Bachelors degree only. 
• The Engineer Development Program will be a promotion requirement for Firefighter II's to become Engineers.
• Shift coverage will be provided for on-duty members only of the Joint Labor Management Committee (JLMC) meetings.

A complete copy of the proposed new agreement will be included in the Council's Friday packet.  A simple majority of the Council Members in attendance at the meeting is necessary for approval.

The City Council may:

• Ratify the labor contract amendments as presented;
• Postpone action on the agreement; or
• Decline to approve the amendments and return the contract to negotiation. 

The Fire Unit has 113 members.  Anticipated cost to the City in the first year of the contract is $107,350 for the $950 deferred compensation contribution, $50,700 for the Degree Incentive and $7,984 for the increase in the retirement payment on health insurance premiums, for a total of $166,034.  Anticipated cost in the second year would be an additional $190,752 for the 2.5% COLA increase. 

The exact benefit from the 5-year extension of time before longevity would begin will depend on the number of firefighters hired in each year, but will benefit the City in the future. 

Since negotiations were underway while the Fiscal Year 2012 budget was being prepared, the cost of the contract would be taken from the General Fund reserves and would be transferred in the fourth quarter budget amendments.

The staff recommends approval of the proposed contract with IAFF - Local 521 for a period from July 1, 2011, to June 30, 2013.