| | | | | | | | Agenda Item - 4.h.
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
| To: | Scott C. Stiles
| From: | Laura J. Stover
| | Dept.: | City Manager
| Dept.: | Human Resources
| | Subject: | Adoption of a Resolution implementing the Memorandum of Understanding with the Garden Grove Fire Management Association. (Action Item) | Date: | 4/12/2016 |
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| | | | | | | | OBJECTIVE
To request City Council adoption of a resolution implementing a new two (2) year Memorandum of Understanding (hereinafter “MOU”) with the Garden Grove Fire Management Association. |
| | | | | | | | BACKGROUND
In 2012, the Fire Management Association was recognized as a bargaining group. Because there were no changes with regard to salaries and benefits over the last few years, Fire Management continued to be included in the Middle Management Resolution.
The Fire Management Association was desirous of their own MOU and staff worked with Fire Management for several months to create a MOU that documented their current salaries and benefits. Additionally, staff negotiated with Fire Management in regard to new salaries and benefits going forward through 2017.
The City recently settled contracts with almost all of the bargaining groups, providing for some increases to medical contributions. These recent agreements have provided the backdrop to the current negotiations with the Fire Management Association. |
| | | | | | | | DISCUSSION
The new MOU provides for an increase to the City’s cafeteria benefits in January 2016, and an additional increase in January 2017. The new MOU also addresses Public Employees’ Pension Reform Act (PEPRA) requirements by defining “classic” members (those in PERS as of 12/31/2012) and “new” members, and by bringing classic members up to the maximum contribution of 12% from the present 9%. The proposed MOU would require classic members to begin paying 12% PERS contribution on January 1, 2016. To offset this increased contribution, the salary range will be adjusted by three percent (3%) on the same day. Because these are offsetting amounts, staff is not considering this as a general salary increase. |
| | | | | | | | FINANCIAL IMPACT
The cost of increase in the City’s cafeteria contributions in 2016 for members of the Fire Management Association is approximately $4,380 and in 2017 is approximately $6,540, totaling approximately $10,920 for both years.
This agreement increases the Fire Division Chief’s and Fire Battalion Chief’s PERS contribution from 9% to 12%, and increases the Fire Division Chief’s and Fire Battalion Chief’s salary ranges by 3%. The cost of these adjustments is approximately $23,650 per year.
While these additional costs were not accounted for in the City’s FY 2015/16 appropriation, they will be absorbed within the adopted budget. |
| | | | | | | | RECOMMENDATION
It is recommended that the City Council take the following action:
- Adopt the attached resolution approving the proposed Memorandum of Understanding with the Garden Grove Fire Management Association for the term of January 1, 2016, through December 31, 2017.
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