REPORT TO THE CITY COUNCIL FROM: SUMEET MALHI, Director Personnel Services Department BY: TONY GARCIA, Chief Labor Negotiator Personnel Services Department STEPHANIE FOGLIO, Senior Human Resources/Risk Analyst Personnel Services Department SUBJECT ..Title Actions pertaining to the International Association of Firefighters A.F.L.-C.I.O., Fresno City Firefighters Association, Local 202, IAFF - Non-Management Fire for Unit 5 1. ***Adopt a successor Memorandum of Understanding between the City of Fresno and International Association of Firefighters A.F.L.-C.I.O., Fresno City Firefighters Association, Local 202 (Non-Management Fire - Unit 5) (Subject to Mayor's veto) 2. ***RESOLUTION: Adopt the Sixth Amendment to FY 2026 Salary Resolution No. 2025-177, amending Exhibit 5, Unit 5 - Non-Management Fire (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 Firefighters A.F.L.-C.I.O., Fresno City Firefighters Association, Local 202 ((Non-Management Fire - Unit 5) (Subject to Mayor's veto) ..Body RECOMMENDATION It is recommended Council (1) approve the attached successor Memorandum of Understanding (MOU) to implement wages, hours and other terms and conditions of employment for City employees in Unit 5, Non-Management Fire, represented by IAFF; and (2) adopt the Sixth Amendment to FY 2026 Salary Resolution No. 2025-177 to amend Exhibit 5. EXECUTIVE SUMMARY The City and IAFF (Non-Management Fire - Unit 5) reached a tentative agreement on a successor MOU which will replace the MOU that expired on June 15, 2025. The MOU provides for an agreement from June 16, 2025 through June 13, 2027, increases to wages, and other changes in terms or conditions of employment. Upon Council approval of the Sixth Amendment to the FY 2026 Salary Resolution, Exhibit 5 of the FY 2026 Salary Resolution will be updated to reflect the amended Exhibit 5 as approved by Council. BACKGROUND The City and IAFF (Non-Management Fire - Unit 5) started meeting in June 2025 to work towards reaching agreement on a successor MOU and the parties reached a tentative agreement on September 3, 2025. Members of the Association ratified on September 7, 2025. Changes to the MOU are summarized below. * Term: o Two-year contract effective June 16, 2025 through June 13, 2027. * Salaries: o FY26: 3% wage increase effective September 8, 2025. o FY26: Potential 1% wage increase effective December 29, 2025, contingent on achieved growth metrics. o FY27: 1% wage increase effective June 15, 2026. * Certificate Premium Pay: o FY27: 1% increase to Certificate Premium Pays effective June 15, 2026. * Department Policies & MOU: Clarified that the MOU shall govern when conflicting with department or City policies. * Compensation for Unused Leave Upon Separation: Modified language to use the employee's permanent 56-hour base rate of pay for HRA calculations. * Compensatory Time Off/Overtime: Clarify that CTR time may be cashed out or accrued as CTO. * Specialty Team Premium Pay: Establish a subcommittee to identify operational efficiencies specific to improving specialty team assignments. 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 $1,238,105 to the General Fund and $1,357,913 to All Funds in FY26, and $2,569,111 to the General Fund and $2,801,419 to All Funds in FY27, for a total of $3,807,216 to the General Fund and $4,159,332 to All Funds for the term of the MOU, which expires June 13, 2027. Attachments: City of Fresno and IAFF-Basic MOU - Redline City of Fresno and IAFF-Basic MOU - Final Costing for Proposed IAFF-Basic MOU Resolution - Sixth Amendment to FY 2026 Salary Resolution No. 2025-177 Salary Tables - Sixth Amendment to FY 2026 Salary Resolution No. 2025-177 - Redline Salary Tables - Sixth Amendment to FY 2026 Salary Resolution No. 2025-177 - Final