The City Council voted at its Aug. 26, 2013, meeting to postpone action to Sept. 23 on a tentative agreement for the renewal of a labor contract between the City and the International Association of Fire Fighters (IAFF) Local 521.  The City and  Local 521 need to meet to resolve a portion of the agreement dealing with health insurance.  With the Labor Day holiday and other contract negotiations, however, it has not been possible to set the anticipated meeting until the same day as the Sept. 23rd Council meeting.  If agreement is reached that day, Local 521 also will need to vote on any agreement before it comes to City Council.  Therefore, staff is recommending that an extension to Oct. 28 be granted.

The Council may:

• Postpone action to Oct. 28, 2013; or
• Postpone action to another time to be determined by the Council.

Postponing consideration of the agreement will have no immediate financial effect.

A proposed 2.9% cost of living agreement (COLA) for the first two years of the 3-year contract will cost $261,000 for Fiscal Year (FY) 2014 and $268,569 for FY 2015.  The cost of the COLA for FY 2016 would be the subject of a wage re-opener in that year. 

A proposed increase in the cost of the health insurance to retirement benefit would depend on the cost of health insurance, which will not be known until January of each budget year.

There is adequate funding in General Fund reserves to cover the increases, although a budget amendment and transfer to the Public Safety Fund will be required later.

Staff recommends postponing consideration of the agreement to Oct. 28, 2013.