The City Council is being asked to approve a tentative agreement for the renewal of a labor contract between the City and the International Association of Fire Fighters (IAFF) Local 521.  The tentative agreement originally was reached July 8, 2013, but Council approval has been postponed several times to allow additional negotiation on the language concerning health insurance percentage splits, and for Local 521 to vote on the renewal.  The contract now is scheduled to be voted on by Local 521 on Nov. 4 and 5.  A report on the outcome of the vote will be provided to the Council in its Nov. 8 Friday Packet.  If approved by both sides, the contract will apply retroactively from July 1, 2013, through June 30, 2016.

Changes to the contract include:

• A 2.9% cost of living adjustment (COLA) for each of the first two years of the contract and a wage re-opener for the third year.
• Allowing an employee to work at a lower level than his/her current classification to maintain staffing, but ensuring that the employee is paid his or her original rate of pay;
• A technical definition for a fire working unit, called a company;
• Allowing fire suppression employees on special assignment to receive any higher classification pay they would have received if they remained on regular duty;
• Grandfathering special certification pay for an employee who already has a boiler license, but eliminating the license as a certification after that individual leaves or allows his license to lapse;
• Limiting the amount paid through salary to retirement to the actual increase in the City's portion of the premium or 15%, whichever is less; and
• Promoting health by adding a voluntary physical fitness program, in which those who participate in annual testing will receive a once a year payment of $100, 200, or $300, depending on his/her overall score.

A copy of the contract is available for review in the City Clerk's Office.

If Local 521 ratifies the contract, the Council may:

• Approve the contract as presented, with pay retroactive to July 1, 2013;
• Postpone action on the contract to obtain additional information; or
• Deny approval of the contract, forcing negotiations to resume.

The COLA in the contract will cost $261,000 for FY14 and $268,569 for FY15.  The COLA for the final year of the contract will depend on what is negotiated in FY 15.  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.

The increase in the cost of the health insurance to retirement benefit will depend on the increase in the cost of health insurance, which will not be known until January of each year.  If health insurance premiums remain stable as expected in 2014, there will be no additional cost.

The cost of the voluntary physical fitness program is not yet known, as it will depend on the number of employees who choose to participate.

Staff recommends that the Council approve the City - Local 521 IAFF collective bargaining agreement as presented, with pay retroactive to July 1, 2013.