REPORT TO THE CITY COUNCIL FROM: TJ MILLER, Director Personnel Services Department SUBJECT ..Title Actions pertaining to the International Association of Fire Fighters (IAFF), Local 202 for Unit 10: 1. ***Adopt a successor Memorandum of Understanding between the City of Fresno and International Association of Fire Fighters (IAFF), Local 202 for Unit 10 (Subject to Mayor's Veto). 2. ***RESOLUTION: Adopt the 8th Amendment to FY 2022 Salary Resolution No. 2021-176, amending Exhibit 10, Fire Management (IAFF), to provide a salary increase for respective classes as required by the Memorandum of Understanding between the City of Fresno and International Association of Fire Fighters (IAFF), Local 202 (Subject to Mayor's Veto). ..Body RECOMMENDATION It is recommended Council (1) approve the attached Memorandum of Understanding (MOU) to implement wages, hours and other terms and conditions of employment for City employees in Unit 10, Fire Management (IAFF); and (2) adopt the Eighth Amendment to the Fiscal Year 2022 Salary Resolution No. 2021-176 to amend Exhibit 10. EXECUTIVE SUMMARY The City and IAFF reached a tentative agreement on a successor MOU which will replace the MOU that expired on June 30, 2020. The MOU provides for an agreement from December 9, 2021 through June 30, 2024, increases to wages, and other changes in terms or conditions of employment. BACKGROUND The City and IAFF started meeting in June 2020 to work towards reaching agreement on a successor MOU. The parties reached a tentative agreement on November 3, 2021. Members of the Unit ratified on November 15, 2021. . Major changes to the MOU are summarized below. * Term: December 9, 2021 through June 30, 2024. * Wages: o 3% lump sum payment equivalent to 3% of actual base wages earned from July 1, 2020 through June 30, 2021. The lump sum to impact COLA for Tier I retirees through June 30, 2022. For Tier II retirees, the lump sum payment to be treated like holiday pay downs and other pensionable leave cash outs. o 3% wage increase, effective November 22, 2021. o 3% wage increase, effective July 1, 2022. o 3% wage increase, effective July 1, 2023. * Health Reimbursement Arrangement (HRA): Benefit expansion to include qualified medical expenses and an increase to the value factor from 50% to 80% of base hourly rate. * "Me Too" Clause: The City agrees, upon written request of the Association, to match the wage increase or HRA percentage value factor of any other Public Safety unit that receives a greater benefit either through a successor MOU or imposition of terms. * Overhead Premium Pay: o Premium pay to be paid in the next pay check rather than waiting for reimbursement from the State. o Language cleanup to clarify that premium pay for Deputy Chiefs is calculated based on the rates of the most recent salary survey of record used by the City for reimbursements from the State. * Association Business: 1,000 hours of time off per year for Association Executive Board members, which shall be reimbursed by the Association to the Department for actual time used at the actual cost of the employee's hourly rate while on leave for Association Business. * Dues Deduction: Incorporate side letter with updates to government code reference. * IAFF Local Number: Updates throughout to reflect the change of the Local number from 753 to 202. * Administrative Appeals Reopener: Remove outdated language on a reopener to develop processes for administrative appeals of punitive actions under the Firefighters Procedural Bill of Rights Act. In addition to the above, there was language clean up throughout the MOU. The City Attorney's Office has approved the new MOU and Salary Resolution Amendment as to form. ENVIRONMENTAL FINDINGS By the definition provided in the California Environmental Quality Act Guidelines Section 15378 this item does not qualify as a "project" and is therefore exempt from the California Environmental Quality Act requirements. LOCAL PREFERENCE Local preference is not implicated because this item does not involve public contracting or bidding with the City of Fresno. FISCAL IMPACT Approval of the MOU and Salary Resolution Amendment will result in estimated additional salary and benefit expenses of $125,953 to the General Fund and All Funds in FY22, $310,229 to the General Fund and All Funds in FY23, and $434,057 to the General Fund and All Funds in FY24, for a total of $870,239 to the General Fund and All Funds for the term of the MOU, which expires 6/30/2024. Attachments: City of Fresno and IAFF-Management MOU - Redline City of Fresno and IAFF- Management MOU - Final Costing for Proposed MOU Resolution - Eighth Amendment to FY 2022 Salary Resolution No. 2021-176 Salary Tables - Eighth Amendment to FY 2022 Salary Resolution No. 2021-176 - Redline Salary Tables - Eighth Amendment to FY 2022 Salary Resolution No. 2021-176 - Final