Item 7 - Tentative Agreement for a Successor Memorandum of Understanding between the City of Poway and the Poway Firefighters’ AssociationSeptember 7, 2021, Item #7DATE: TO: FROM: CONTACT: SUBJECT: Summary: AG EN DA REPORT City of Poway CITY COUNCIL September 7, 2021 Honorable Mayor and Members of the City Council Jodene Dunphy, Human Resources & Risk Management Director /41}-Aaron Beanan, Finance Director ~ 0 Jodene Dunphy, Human Resources & Risk Management Director (858) 668-4413 or jdunphy@poway.org Aaron Beanan, Director of Finance (858) 668-4411 or abeanan@poway.org Tentative Agreement for a Successor Memorandum of Understanding between the City of Poway and the Poway Firefighters' Association The existing Memorandum of Understanding (MOU) between the City of Poway (City) and the Poway Firefighters' Association (PFA) expired on June 30, 2021. Staff has reached a Tentative Agreement (TA) with PFA on a six-year term for the new MOU effective July 1, 2021 through June 30, 2027 and staff is recommending approval. Recommended Action: It is recommended that the City Council: 1) Adopt a Resolution authorizing the terms of the TA and authorizing the City Manager to execute, on behalf of the City of Poway, a Memorandum of Understanding between the City and PFA, incorporating the terms of the TA, which has been ratified by PFA, without further specific actions by the City Council; 2) Adopt a Resolution approving the Salary Schedule for the members of the Poway Firefighters' Association; and 3) Adopt a Resolution appropriating funds in FY 2021-22 to implement the financial terms of the TA with the Poway Firefighters' Association. Discussion: California law provides for the determination of public employee wages, hours and other terms and conditions of employment through a process of meeting and conferring between public agency representatives and employee bargaining unit representatives. Negotiations between the City of Poway and PFA, representing 48 fire safety full-time equivalent (FTE) positions, began in March 2021. After six meet and confer sessions, a TA was reached. PFA has ratified the TA, which requires approval in open session by the City Council. The current MOU expired on June 30, 2021. A new MOU will be generated, finalized, and executed based on the City Council's approval of the attached Resolution. The MOU will be effective July 1, 2021 through June 30, 2027 and will incorporate the items in the TA included in the Resolution. The financial terms incorporated in the MOU will not 1 of9
September 7, 2021, Item #7extend beyond those outlined in the attached Resolution. The six-year agreement with PFA is an investment in the City's high performing and valued fire safety employees. Poway employees, including fire safety personnel, have not received across-the-board salary increases the last two fiscal years. To regain a competitive position in the San Diego market and immediately address current recruitment and retention challenges, the TA provides for a salary adjustment in Year 1 that will reposition fire safety personnel in a better market position and salary increases in Years 2-6 to maintain the competitive market position. The only economic provision of the six-year TA with PFA are salary increases. Effective July 1, 2021, an across-the-board salary increase of 10% will be provided retroactively to all employees represented by PFA and is reflected in the attached PFA Salary Schedule (Exhibit A of Attachment B). Effective July 1, 2022, 2023, 2024, 2025 and 2026, across-the-board salary increases of 3.5% will be provided to employees represented by PFA. The PFA Salary Schedules for future years will be part of budget adoption for each fiscal year. Environmental Review: This action is not subject to review under the California Environmental Quality Act (CEQA). Fiscal Impact: The estimated fiscal impact of the TA with PFA is outlined by fiscal year in the table below. Fiscal Year Estimated Cost Increase General Fund 2021-22 $636,991 2022-23 $889,123 2023-24 $1,152,834 2024-25 $1,419,404 2025-26 $1,695,289 2026-27 $1,980,887 Totals $7,774,528 The totals shown in Table 1.0 above include roll-up costs and funds will be allocated from the General Fund. The Resolution attached as Attachment C includes the appropriations necessary to adjust the Fiscal Year 2021-22 budget to implement the provisions of the TA with PFA. Public Notification: Representatives of the PFA were provided a copy of this report. Attachments: A. Resolution authorizing the execution of a six-year Memorandum of Understanding between the City and the Poway Firefighters' Association for the period of July 1, 2021 through June 30, 2027 B. Resolution approving the Salary Schedule for Poway Firefighters Association effective July 1, 2021. C. Resolution appropriating funds in FY 2021-22 to implement the financial terms of the Tentative Agreement with the Poway Firefighters' Association. 2 of9
September 7, 2021, Item #7Reviewed/ Approved By: Wendy serman Assistant City Manager 3 of9 Reviewed By: Alan Fenstermacher City Attorney Approved By: Ch&d City Manager
September 7, 2021, Item #7RESOLUTION NO. 21-xx A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POWAY AUTHORIZING THE TERMS OF THE TENTATIVE AGREEMENT AND AUTHORIZING THE EXECUTION OF A SIX-YEAR MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF POWAY AND THE POWAY FIREFIGHTERS' ASSOCIATION FOR THE PERIOD OF JULY 1, 2021 THROUGH JUNE 30, 2027 WHEREAS, the City of Poway ("City"), through its management representatives, has met and conferred in good faith with the Poway Firefighters' Association ("PFA"); WHEREAS, the representatives of the City and PFA each have exchanged freely information, opinions, and proposals on matters regarding wages, hours and other terms and conditions of employment for PFA members; WHEREAS, the City and PFA representatives have agreed on the term of a new Memorandum of Understanding to be July 1, 2021 through June 30, 2027; WHEREAS, the City and PFA representatives have agreed upon the items as listed below under Section 2 of this Resolution as the Tentative Agreement; WHEREAS, PFA has ratified the Tentative Agreement for the period of July 1, 2021 through June 30, 2027. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Poway as follows: SECTION 1: That the terms of the Tentative Agreement (SECTION 2) be incorporated into the Memorandum of Understanding ("MOU") and adopted for implementation effective July 1, 2021. SECTION 2: That the City Manager is hereby directed and authorized to implement all provisions of the Tentative Agreement listed below, which are to be incorporated into the Memorandum of Understanding without further specific actions by the City Council. No additional financial terms will be assumed beyond the terms of the approved Tentative Agreement when finalizing and executing the Memorandum of Understanding. The Tentative Agreement includes: a) Six Year Term: July 1, 2021 -June 30, 2027; b) Salary Increases as follows: 10% July 1, 2021; 3.5% July 1, 2022; 3.5% July 1, 2023; 3.5% July 1, 2024; 3.5% July 1, 2025; 3.5% July 1, 2026; and c) Effective beginning July 1, 2024, the PFA shall have a reopener, at its sole option, to reopen any item within the MOU. PASSED, ADOPTED AND APPROVED at a Regular Meeting of the City Council of the City of Poway, California on the 7th day of September, 2021 by the following vote, to wit: AYES: NOES: ABSENT: 4 of9 ATTACHMENT A
September 7, 2021, Item #7DISQUALIFIED: ATTEST: Carrie Gallagher, CMC, City Clerk 5 of 9 Steve Vaus, Mayor Resolution No. 21-Page 2
September 7, 2021, Item #7RESOLUTION NO. 21-xx A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POWAY APPROVING THE SALARY SCHEDULE FOR THE EMPLOYEES REPRESENTED BY THE POWAY FIREFIGHTERS' ASSOCIATION EFFECTIVE JULY 1, 2021 THROUGH JUNE 30, 2022 WHEREAS, a Salary Schedule is established for employees represented by the Poway Firefighters' Association ("PFA"); WHEREAS, the City of Poway and the Poway Firefighters' Association (PFA) have agreed upon a six-year term for a successor Memorandum of Understanding; WHEREAS, Exhibit A reflects the approved salary increases effective July 1, 2021 for employees represented by PFA. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Poway as follows: SECTION 1: That the above recitals are true and correct. SECTION 2: That the Salary Schedule for employees represented by PFA is attached hereto as Exhibit A, and is hereby adopted, effective July 1, 2021. PASSED, ADOPTED AND APPROVED at a Regular Meeting of the City Council of the City of Poway, California on the 7th day of September, 2021 by the following vote, to wit: AYES: NOES: ABSENT: DISQUALIFIED: Steve Vaus, Mayor ATTEST: Carrie Gallagher, CMC, City Clerk 6 of9 ATTACHMENT B
September 7, 2021, Item #7I EXHIBIT A CITY OF POWAY POWAY FIREFIGHTERS' ASSOCIATION (PFA) SALARY SCHEDULE EFFECTIVE JULY 1, 2021 POSITION lsALARY RANGE STEPS Fire Captain/Paramedic 1030 I 1 I 2 I 3 I 4 I Approx. Biweekly (hourly x 112) 3,804 3,994 4,194 4,404 Hourly (112 hours) 33.966 35.664 37.447 39.320 Hourly (80 hours) 47.552 49.930 52.426 55.047 Approx. Monthly 8,242 8,655 9,087 9,542 Fire EnQineer/Paramedic 1020 I 1 I 2 I 3 I 4 I Approx. Biweekly (hourly x 112) 3,260 3,423 3,595 3,774 Hourly (112 hours) 29.112 30.567 32.095 33.700 Hourly (80 hours) 40.756 42.794 44.933 47.179 Approx. Monthly 7,064 7,418 7,788 8,178 Firefighter/Paramedic 1010 I 1 I 2 I 3 I 4 I Approx. Biweekly (hourly x 112) 3,066 3,219 3,380 3,549 Hourly (112 hours) 27.375 28.743 30.180 31.689 Hourly (80 hours) 38.324 40.240 42.251 44.364 Approx. Monthly 6,643 6,975 7,324 7,690 Approved at the September 7, 2021 City Council meeting 7 of9 I I 5 4,624 41.285 57.799 10,019 5 3,963 35.385 49.539 8,587 5 3,727 33.273 46.582 8,074
September 7, 2021, Item #7RESOLUTION NO. 21-xx A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POWAY, CALIFORNIA, APPROPRIATING FUNDS IN FISCAL YEAR 2021-22 TO IMPLEMENT THE FINANCIAL TERMS OF THE TENTATIVE AGREEMENT WITH THE POWAY FIREFIGHTERS' ASSOCIATION WHEREAS, the City of Poway has reached a Tentative Agreement with the Poway Firefighters' Association ("PFA") and the City Council has authorized the City Manager to execute a successor Memorandum of Understanding with the PFA with a term of July 1, 2021 through June 30, 2027; WHEREAS, an appropriation in Fiscal Year 2021-22 of $636,991 is necessary to implement the year 1 changes to the Memorandum of Understanding for employees designated as PFA members; WHEREAS, the appropriations for year 1 changes to the successor Memorandum of Understanding with the PFA will come from unassigned General Fund balance, and sufficient funds are available. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Poway as follows: SECTION 1: That the above recitations are true and correct. SECTION 2: That the Director of Finance is authorized to appropriate $636,991 from unassigned General Fund balance to cover the Fiscal Year 2021-22 expenses for employees represented by the PF A. SECTION 3: That the following appropriations by fiscal year will be included in the applicable operating budgets: Fiscal Year Amount Fiscal Year 2022-23 $889,123 Fiscal Year 2023-24 $1,152,834 Fiscal Year 2024-25 $1,419,404 Fiscal Year 2025-26 $1,695,289 Fiscal Year 2026-27 $1,980,887 Total $7,137,537 PASSED, ADOPTED AND APPROVED at a Regular Meeting of the City Council of the City of Poway, California on the 7th day of September, 2021 by the following vote, to wit: AYES: NOES: ABSENT: DISQUALIFIED: 8 of9 ATTACHMENT C
September 7, 2021, Item #7ATTEST: Carrie Gallagher, CMC, City Clerk 9 of9 Steve Vaus, Mayor Resolution No. 21-Page 2