REPORT TO THE CITY COUNCIL FROM: MARISSA SANCHEZ, Director Personnel Services Department BY: STEPHANIE HERNANDEZ, Principal Labor Relations Analyst Personnel Services Department SUBJECT ..Title Actions pertaining to the International Association of Fire Fighters (IAFF), Local 202 for Unit 5 and Unit 10 1. ***Adopt an amended Memorandum of Understanding between the City of Fresno and International Association of Fire Fighters (IAFF), Local 202, Non-Management Fire for Unit 5 (Subject to Mayor's Veto) 2. ***Adopt an amended Memorandum of Understanding between the City of Fresno and International Association of Fire Fighters (IAFF), Local 202, Fire Management for Unit 10 (Subject to Mayor's Veto) 3. ***RESOLUTION: Adopt the Twenty-first Amendment to FY 2022 Salary Resolution No. 2021-176, amending Exhibit 5, Fire Non-Management (IAFF), and Exhibit 10, Fire Management, as required by the amended Memoranda 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 an amended Memorandum of Understanding (MOU) between the City and IAFF for Unit 5; (2) approve a Side Letter of Agreement between the City and IAFF for Unit 10; and (3) adopt the Twenty-first Amendment to the Fiscal Year 2022 Salary Resolution No. 2021-176 to amend Exhibit 5 and Exhibit 10, retroactively effective June 20, 2022. EXECUTIVE SUMMARY In Spring of 2022, the City and IAFF engaged in discussions with the objective of adding an H Step and an I Step for classes in Unit 5 and Unit 10 without increasing the total cost of their current MOU. The City and IAFF worked collaboratively with the understanding that the cost of the additional steps shall not require the City to seek additional appropriations and the modification of existing provisions of the respective Memoranda of Understanding (MOU) and Fresno Fire Department policy may be necessary to offset the cost. After evaluating the City's fiscal landscape, it was determined that the City could absorb the cost of an H Step effective Fiscal Year 2023 with existing funding resources; however, modifications to current provisions of the MOUs would be necessary to neutralize the cost of an I Step that is scheduled to take place in Fiscal Year 2024. The City and IAFF have reached agreement on a number of changes to provisions in the respective MOUs which generate a cost to the City. Modifying these provisions will make funds available to implement an I Step in Fiscal Year 2024. This agreement has been codified in writing in a Settlement Agreement signed by representatives of the City and IAFF. Further, the effective dates of the previously negotiated salary increases have been updated to reflect the adjusted effective dates pursuant to the Thirteenth Amendment to the Fiscal Year 2022 Salary Resolution, as approved by Council on February 10, 2022. In order to implement the terms of the Settlement Agreement, it is necessary for Council to approve the MOUs with Unit 5 and Unit 10 and adopt the Twenty-first Amendment to the Fiscal Year 2022 Salary Resolution No. 2021-176. BACKGROUND Council approved successor MOUs between the City and IAFF Non-Management Fire for Unit 5 and Fire Management for Unit 10 on December 9, 2021. IAFF requested the City add an H and I step to their existing contract. The City and IAFF began meeting with the goal of reaching an agreement to add an H Step and an I Step to Unit 5 and Unit 10 which would be cost neutral to the City. The City determined that no additional appropriations would be needed to add an H Step in Fiscal Year 2023 and that costs could be absorbed within the existing budget. The City and IAFF reached an agreement to make revisions to the MOUs for Unit 5 and Unit 10, as well as Fire Department policy which would modify exiting cost generating provisions and redirect funds to add an I Step without an additional cost to the City. Members of the units ratified the conceptual changes on June 11, 2022. Changes reflected in the amended MOUs are summarized below: IAFF Non-Management Fire for Unit 5 * An "H" Step will be added to the salary range for the classifications of Firefighter, Firefighter Specialist, Fire Captain, and Fire Investigation Unit Supervisor, effective June 20, 2022. The "H" Step represents a 5% increase above the "G" Step. * An "I" Step will be added to the salary range for the classifications of Firefighter, Firefighter Specialist, Fire Captain, and Fire Investigation Unit Supervisor, effective September 25, 2023. The "I" Step represents a 5% increase above the "H" Step. * Unscheduled Holiday Leave and Vacation Leave with a replacement of like rank will be limited to a combined total of 288. * Employees may not work overtime/shift replacement while on Vacation Leave except when they are held over a shift or on a mandatory recall. Employees may opt to cancel their Vacation Leave with one week's notice, at which time they may work at straight time and have their Vacation Leave balance restored. * Employees assigned to a 56-hour workweek who work a compensatory time replacement (CTR) shall only accrue CTO, up to 144 hours per fiscal year. * Compensatory Time Off (CTO) may be taken with a replacement in one hour to 24-hour increments or uncovered in 24-hour shifts. IAFF Fire Management for Unit 10 * An "H" Step will be added to the salary range, effective June 20, 2022. The "H" Step represents a 5% increase above the "G" Step. * An "I" Step will be added to the salary range, effective September 25, 2023. The "I" Step represents a 5% increase above the "H" Step. * Employees may elect to transfer up to 32 hours per fiscal year of additional Management Leave to a Special HRA bank to be converted to an HRA account for eligible employees upon retirement with a value of 80% percent of their hourly rate at the time of retirement. Hours in the Special HRA bank may not be taken as leave time, transferred, or cashed out if the employee is not eligible to participate in the HRA upon retirement. In addition to the changes in the amended MOUs, the Fresno Fire Department Constant Staffing Policy will be amended to increase the relief pool by one Firefighter, one Firefighter Specialist, and one Fire Captain, thereby increasing staff available to cover absences at the straight time rate and mitigating the number staff required to backfill absences at the overtime rate, which will effectively reduce the department's overtime costs. Further, the effective dates of the previously negotiated salary increases have been updated to reflect the adjusted effective dates pursuant to the Thirteenth Amendment to the Fiscal Year 2022 Salary Resolution, as approved by Council on February 10, 2022. The City Attorney's Office has approved the amended MOUs 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 amended MOUs and Salary Resolution Amendment does not require additional appropriations. Attachments: Amended MOU between the City of Fresno and IAFF Non-Management for Unit 5 - Redline Amended MOU between the City of Fresno and IAFF Non-Management for Unit 5 - Final Amended MOU between the City of Fresno and IAFF Fire Management for Unit 10 - Redline Amended MOU between the City of Fresno and IAFF Fire Management for Unit 10 - Final Cost of I Step / Savings from Settlement Agreement for Amended MOUs between the City and IAFF Resolution - Twenty-first Amendment to FY 2022 Salary Resolution No. 2021-176 Salary Tables - Twenty-first Amendment to FY 2022 Salary Resolution No. 2021-176 - Redline Salary Tables - Twenty-first Amendment to FY 2022 Salary Resolution No. 2021-176 - Final