HomeMy WebLinkAboutStaff Report 3.B 01/27/2020Agenda Item #3.B
DATE: January 27, 2020
TO: Honorable Mayor and Members of the City Council through City Manager''
FROM: Charles Castillo, Director of Human Resources
Aman Kaur, Human Resources Analyst
SUBJECT: Resolution Ratifying the Side Letter Agreement Executed by the Duly Authorized
Representatives of the City of Petaluma and the International Association of Fire
Fighters, Unit 7
RECOMMENDATION
It is recommended that the City Council adopt the attached Resolution Ratifying the Side Letter
Agreement, Executed by the Duly Authorized Representatives of the City of Petaluma and the
International Association of Fire Fighters, Unit 7.
BACKGROUND
The International Association of Fire Fighters (IAFF) represents Unit 7 and the existing
Memoranda of Understanding (MOU) is effective January 1, 2018 through June 30, 2021. This
successor MOU was unanimously adopted by City Council on November 18, 2019. During the
most recent negotiations, the parties agreed on salary increases primarily aimed at bringing wages
closer to market. Additionally, parties agreed to the implementation of an employee cost -share. The
employee cost -share would gradually increase employee contributions for California Public
Employees' Retirement System (CalPERS) Classic members by 3%, specifically:
A. 1/1/2020 or following the adoption of a contract amendment with CalPERS, whichever is
later, 9% to 10%
B. 7/1/2020: 10% to 11%
C. 1/1/2021: 11% to 12%
DISCUSSION
Following Council adoption of Unit 7's successor MOU, staff focused efforts to expeditiously
implement the mutually agreed upon employee cost -share. Much of the implementation process is
regulated by CalPERS. CalPERS has requested the City amend contract language, related to the
employee cost -share, via a Side Letter Agreement to comply with CalPERS regulations before
implementation can continue. CalPERS has provided pre -approval for the amended cost -share
language which is memorialized in the Side Letter Agreement attached as Exhibit A to the
Resolution.
The City has met and conferred with IAFF representatives and the parties have reached agreement
on the attached Side Letter Agreement which serves to amend, clarify, and address issues of
interest to the parties that are not otherwise covered by the MOU. The recommended action ratifies
terms of the Side Letter Agreement negotiated by the two parties.
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There was no specific outreach performed in relation to this item aside from the normal public
meeting agenda process. The City and IAFF representatives have discussed the proposed action
both in meetings and through email correspondence.
FINANCIAL IMPACTS
Increasing employee contributions toward retirement in the form of a cost -share is a cost savings
mechanism. The cost -share was previously adopted by Council and reflected in the financial
impacts of the successor MOU; therefore, no further financial impacts to report.
ATTACHMENTS
1. Resolution with Exhibit A — Side Letter Agreement
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ATTACHMENT 1
RESOLUTION RATIFYING THE SIDE LETTER AGREEMENT EXECUTED BY
THE DULY AUTHORIZED REPRESENTATIVES OF THE CITY OF PETALUMA
AND THE INTERNATIONAL ASSOCIATION OF FIRE FIGHTERS, UNIT 7
WHEREAS, the City of Petaluma and the International Association of Fire Fighters (IAFF),
Unit 7, through their duly authorized representatives, have concluded their mutual obligation to
meet and confer in good faith with respect to amending cost -share language in Section 26 of the
IAFF Memorandum of Understanding (MOU), effective January 1, 2018 — June 30, 2021, in
accordance with the Meyers- Milias-Brown Act and the City's Employer -Employee Relations,
Rules and Regulations (Resolution No. 55412 N.C.S.); and
WHEREAS, the duly authorized representatives of the City and the IAFF have reached
agreement on amended cost -share language and executed this Side Letter Agreement; and
WHEREAS, the City Manager, pursuant to Section 28 of the Charter of the City of
Petaluma, and as the City's Municipal Employees' Relations Officer (Resolution No. 5375
N.C.S.), is required and empowered to make a recommendation to the City Council on matters
related to good faith bargaining and employees' compensation; and
WHEREAS, the City Manager has reviewed and concurs with said Side Letter Agreement
for IAFF, Unit 7, and does recommend that the City Council ratify said Side Letter Agreement.
NOW, THEREFORE, BE IT RESOLVED that the Side Letter Agreement, being in the
best interests of the City of Petaluma, is hereby ratified and the terms and conditions of said Side
Letter Agreement, attached to and incorporated as Exhibit A, shall be effective following
ratification.
3
SIDE LETTER AGREEMENT BETWEEN THE CITY OF
PETALUMA AND THE INTERNATIONAL ASSOCIATION
OF FIRE FIGHTERS (IAFF), UNIT 7
The representatives of the City of Petaluma and the International Association of Fire Fighters
(IAFF), Unit 7, have met and conferred and reached agreement on this Side Letter of Agreement
to modify the current cost -share agreement in Section 26 - California Public Employees'
Retirement System to comply with Ca1PERS regulations. The parties agree to the following:
Effective the first payroll following the adoption of a contract amendment with Ca1PERS, the
employee contribution for employees defined as "classic" shall increase by one percent (1%).
This one percent (I%) is added to the current nine percent (9%), for a total of ten percent (10%).
Effective July 1, 2020 or the first payroll following the adoption of a contract amendment with
Ca1PERS, whichever is later, the employee contribution for employees defined as "classic" shall
increase by an additional one percent (I%), for a total of eleven percent (11 %).
Effective January 1, 2021, the employee contribution for employees defined as "classic" shall
increase by an additional one percent (1 %), for a total of twelve percent (12%).
The parties shall work collaboratively to expedite formal adoption of a contract amendment with
Ca1PERS to reflect this cost-sharing agreement under which the employees defined as "classic"
are paying a portion of the employer contribution to CalPERS.
INTERNATIONAL ASSOCIATION OF FIRE FIGHTERS
Kenneth Dick, President, IAFF Local 1415
Date
Matt Martin, Representative, IAFF Local 1415 Date
CITY OF PETALUMA
Peggy Flynn, City Manager
Date
Charles Castillo, Director of Human Resources Date