CITY OFALAMEDA Memorandum To: Honorable Mayor and …

CITY OF ALAMEDAMemorandum

To: Honorable Mayor andMembers of the City Council

From: John A. RussoCity Manager

Date: December 11, 2012

Re: Adopt a Resolution Approving a Memorandum of Understanding Betweenthe Alameda Fire Management Association and the City of Alameda for thePeriod Beginning June 30,2013 Through June 24, 2017

BACKGROUND

The proposed Memorandum of Understanding (MOU) between the City of Alameda andthe Alameda Fire Management Association (AFMA) is for the period of June 30, 2013through June 24, 2017. The MOU is on file in the City Clerk's office and will be subjectto administrative correction for clerical purposes as warranted.

DISCUSSION

The City of Alameda labor relations representatives have met in closed session with theCity Council to discuss negotiations with the AFMA. This MOU is a result of thosenegotiations and falls within the parameters authorized by the City Council. Themembership of the AFMA has approved this agreement.

As part of this MOU, the AFMA has agreed to continue participation in the PERSVariable Employee Cost Sharing and increase the rate of participation by 1% each fiscalyear for four years. This agreement will result in raising the amount contributed byAFMA members to their pension premium by 67% (from 9% of salary to 15% of salary),for an estimated City savings of $123,000 over the life of the contract. Under therecently enacted State pension reform legislation, public agencies may impose amaximum employee contribution of 12% beginning January 1, 2018. This 15%contribution is 25% higher than the maximum the City would otherwise be able toimpose.

Furthermore, the members of AFMA, along with other Safety employee groups, haveagreed to a final retirement benefit compensation calculation formula based on thehighest average annual pensionable compensation earned during a consecutive 36-month period, rather than the current single-highest year formula.

With respect to new employees hired after January 1, 2013, the contract incorporatesthe critical concepts contained in the State's pension reform legislation. As a result, no

City CouncilAgenda Item #5-8

12-11-12

Honorable Mayor andMembers of the City Council

December 11,2012Page 2 of 4

concessions were required from the AFMA in order to implement the pension reformprovisions.

There are no employee pay raises for the first six months of the contract, which willmean no increase in employees' compensation for a period of six and one half years,from June of 2007 through 2013. Wage increases effective the first full pay period in2014, 2015, and 2016 will be based upon 50% of the rate of growth during the previousfiscal year in the Balanced Revenue Index (BRI), with a minimum increase of 1.5% anda maximum increase of 4% in 2014, and minimum increases of 2% and maximumincreases of 5% in 2015 and 2016. The BRI is comprised of the following five localAlameda taxes: General Fund Property Tax, 1% Bradley Burns Sales Tax, Utility UsersTax, Transient Occupancy Tax and Property Tax Transfer. The Miscellaneouscontracts agreed to earlier this year included the same wage increase formula. AFMAmembers will receive no pay increases in 2017.

The $1,000 stipend provided to a division chief for shift coverage when on-dutypersonnel are unavailable to serve as the division chief is increased to $1,250, resultingin a reduction of overtime costs. The salary differential provided when the Fire Chiefassigns a Suppression Division Chief to an office assignment for more that 30 days isincreased from 2% to 5%. Uniform Allowance is increased by $40 each year of thecontract.

In addition, AFMA has agreed to participate in employee cost sharing of healthpremiums at a rate of 15% of the increase of Kaiser or Blue Shield premiums beginningJanuary 1, 2014, 25% of the increase of Kaiser or Blue Shield premiums beginningJanuary 1, 2015, 25% of the increase of Kaiser premiums beginning January 1, 2016,and 50% of the increase of Kaiser premiums beginning January 1, 2017. Notably, theCity's base contribution will drop from the Blue Shield premium to the Kaiser premiumbeginning January 1, 2016, which is expected to significantly reduce the City'scontribution to the health premium. Employee cost sharing of health increases will savethe City of Alameda an estimated $27,000 over the life of the contract. For dental, theCity has agreed to increase the benefit of the dental plan from 80% to 90% coverage ofthe cost of services. The City has also agreed to contribute 50% of the cost of visionpremiums beginning January 1, 2016. Dental and vision costs are increased by $2,000each year of the contract.

Other changes to the AFMA MOU include:

• Implementation of a voluntary Catastrophic Leave Bank wherein employees maycontribute unused vacation or compensatory time to other employees who havesustained or whose immediate family member has sustained a serious orcatastrophic illness or injury.

• Creation of an incentive for employees who do not use any sick leave in a calendaryear, wherein they will receive an additional leave day, which may not be cashedout.



• Permanent replacement of the established work sched ule with the 48/96suppression work schedule currently in place on a trial basis.

• Assignment of an "Exclusive Use" City vehicle exclusively for City businesspurposes to all AFMA members. The vehicle will marked as an official City vehicle.

• Reassignment of one of the four Fire Division Chief positions toa previouslyeliminated Deputy Fire Chief classification whose salary will be established at a laterdate by separate Council action.

MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE

There is no impact to the Alameda Municipal Code from the adoption of this resolution.

ENVIRONMENTAL REVIEW

This action is exempt from the California Environmental Quality Act (CEQA) because itis not a project which has a potential for resulting in either a direct physical change inthe environment, or a reasonably foreseeable indirect physical change in theenvironment, pursuant to CEQA Guideline section 15378.

FINANCIAL IMPACT

There is no additional fiscal impact on Fiscal Year 2012-13 with the adoption of theMOU. The total net projected savings from the implementation of this contract(assuming the minimum level of growth in the BRI and stabilization of the employerportion of PERS rates) is estimated to be $18,000 over the life of the contract. Theservices provided to the City by the AFMA are accounted for in the City's General Fund(Fund 001).

RECOMMENDATION

Adopt a Resolution approving the Memorandum of Understanding between theAlameda Fire Management Association and the City of Alameda, for the period of June30,2013 through June 24,2017.

Respectfully submitted,

Holly Brock-CohnHuman Resources Director



Financial Impact section reviewed,

Fred MarshController

Exhibit:1. Memorandum of Understanding between the City of Alameda and the Alameda Fire

Management Association - on file in the City Clerk's office2. Summary MOU Cost Estimate

Summary MOU Cost Estimate

2012-13 2013-14 2014-15 2015-16 2016-17GRAND TOTAL

2013-2017

A. MOU without Educational Incentive

Increase in Employee's PERS Contribution 2

Police (252,057) (341,963) (436,003) (528,384) (1,558,407) Fire (289,710) (393,047) (501,135) (607,316) (1,791,208)

(541,767) (735,010) (937,138) (1,135,700) (3,349,615) Employee Cost Share for Health Costs 3

Police (12,363) (47,802) (198,553) (336,646) (595,364) Fire (14,839) (57,377) (218,205) (365,525) (655,946)

(27,202) (105,179) (416,758) (702,171) (1,251,310)

Increase in Salaries 1

Police 62,545$ 209,735$ 380,716$ 467,054$ 1,120,050$ Fire 71,888 241,065 437,589 536,824 1,287,366

134,433 450,800 818,305 1,003,878 2,407,416

Increase in PERS/Medicare due to Salary Increases

Police 23,423 76,448 134,964 160,900 395,735 Fire - 26,922 87,868 155,125 184,936 454,851

- 50,345 164,317 290,089 345,836 850,587

Increase in Dental CoveragePolice 13,331 18,070 22,952 27,981 82,334

Fire 13,790 18,693 23,744 28,946 85,173 27,121 36,764 46,696 56,927 167,508

Increase in Uniform AllowancePolice 24,288 46,288 68,288 68,288 207,152

Fire 3,880 7,760 11,640 15,520 38,800 28,168 54,048 79,928 83,808 245,952

Increase in Office Assignment DifferentialPolice (N/A)

Fire 5,126 5,126 5,126 5,126 20,505 5,126 5,126 5,126 5,126 20,505

Cost of Sick Leave Incentive 6

Police (N/A)Fire 3,000 3,000 3,000 3,000 12,000

3,000 3,000 3,000 3,000 12,000

Increase in City Contribution to Vision premium 4

Police - - 607 1,245 1,852 Fire - - 670 1,374 2,044

- - 1,277 2,619 3,896

Increase Cost to City -$ (320,776)$ (126,134)$ (109,474)$ (336,677)$ (893,062)$

B. Educational Incentive 7

Increase in Educational Incentive 5

Police 130,055 132,006 134,646 135,992 532,698 Fire 140,130 280,260 284,464 290,153 293,055 1,288,063

140,130 410,315 416,470 424,799 429,047 1,820,761

Increase in PERS/Medicare due to

Salary and Educational Incentive IncreasesPolice 48,705 48,116 47,732 46,849 191,403

Fire 53,436 104,957 103,687 102,859 100,957 465,897 53,436 153,663 151,803 150,591 147,807 657,300

Increased Cost to City 193,566$ 563,978$ 568,273$ 575,390$ 576,854$ 2,478,061$

Notes:1 Assuming bottom of proposed range of increases for each fiscal year and that the wage increases be effective January 1st each year (1.5% for 1/1/2014, 2% for 1/1/2015, 2% for 1/1/16 and 0% for 1/1/17) The dollar costs shown are cumulative for each year.

2 Assuming increase in Employee's PERS contribution rate by 1% each year from the current 11%. The increases will begin 7/1/13, increase annually on July 1st of each year and continue through 6/30/17 to the maximum rate of 15%.

3 Assumes employee cost share of 15% of increase beginning 1/1/14, 25% beginning 1/1/15 through 12/31/16 and 50% beginning 1/1/17 Assumes that change for both Kaiser and Blue Shield plans will be the same for each of these years. Assumes that ALL employees in each of the bargaining units would be subject to this cost sharing, REGARDLESS of the type of coverage that they had The dollar savings shown are cumulative for each year. Reflects reduction in maximum coverage from Blue Shield to Kaiser beginning 1/1/16

4 Estimate based on Family coverage rate. Actual cost may be lower if employees elect a lower coverage level or waives coverage. For 2013-14, rate guaranteed @ $22.70/month. For 2015-17, assumes 5% rate increase. There is no current employer contribution.

5 Current Police educational incentive pay is only available for employees hired prior to 7/1/95. Proposed total may increase as employees obtain certification or degree, or are promoted to a higher level of pay. Amounts for Fire prepared by fire Department, Per HR would be effective 1/1/

6 Assumes possible overtime to back fill employee using additional leave (per Chief D'Orazi) No overtime used to back fill single days off (per Chief Noonan)

7 The cost for the Fire and Police Department education incentive could fluctuate based on employees attaining service and training/education benchmarks.

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Exhibit 2 to 5-B

CITY OF ALAMEDA RESOLUTION NO. _

APPROVING MEMORANDUM OF UNDERSTANDINGBETWEEN

THE ALAMEDA FIRE MANAGEMENT ASSOCIATIONAND

THE CITY OF ALAMEDA FOR THE PERIOD COMMENCINGJUNE 30, 2013 AND ENDING JUNE 24, 2017

WHEREAS, there has been submitted to this Council a Memorandum ofUnderstanding between the Alameda Fire Management Association (AFMA)and the City of Alameda; and

WHEREAS, the Council of the City of Alameda has fully examined saidproposed Memorandum of Understanding, a copy of which is on file in theOffice of the City Clerk, and thereby finds and determines adoption of saiddocuments to be in the best interest of the City.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the Cityof Alameda that said Council hereby approves and adopts said revisedMemorandum of Understanding.

BE IT FURTHER RESOLVED that the provision of this Resolution shallsupersede any other resolution in conflict herewith.

* * * * *I, the undersigned, hereby certify that the foregoing Resolution was duly

and regularly adopted and passed by the Council of the City of Alameda in aregular meeting assembled on the 11th day of December, 2012, by thefollowing vote to wit:

AYES

NOES:

ABSENT:

ABSTENTIONS:

IN WITNESS, WHEREOF, I have hereunto set my hand and affixed theseal of said City this 12th day of December, 2012.

Lara Weisiger, City ClerkCity of Alameda

Resolution #5-812-11-12




Date: December 11,2012

Re: Adopt a Resolution Approving a Memorandum of Understanding Betweenthe International Association of Firefighters and the Cityof Alameda for the Period Beginning June 30, 2013 Through June 24, 2017

BACKGROUND

The proposed Memorandum of Understanding (MOU) between the City of Alameda andthe International Association of Firefighters, Local 689 (IAFF) is for the period of June30, 2013 through June 24, 2017. The MOU is on file in the City Clerk's office and willbe subject to administrative correction for clerical purposes as warranted.

DISCUSSION

The City of Alameda labor relations representatives have met in closed session with theCity Council to discuss negotiations with the IAFF. This MOU is a result of thosenegotiations and falls within the parameters authorized by the City Council. Themembership of the IAFF has approved this agreement.

As part of this MOU, the IAFF has agreed to continue participation in the PERS VariableEmployee Cost Sharing and increase the rate of participation by 1% each fiscal year forfour years. This agreement will result in raising the amount contributed by IAFFmembers to their pension premium by 67% (from 9% of salary to 15% of salary), for anestimated City savings of $1,668,000 over the life of the contract. Under the recentlyenacted State pension reform legislation, public agencies may impose a maximumemployee contribution of 12% beginning January 1, 2018. This 15% contribution is 25%higher than the maximum the City would otherwise be able to impose.

Furthermore, the members of IAFF, along with other Safety employee groups, haveagreed to a final retirement benefit compensation calculation formula based on thehighest average annual pensionable compensation earned during a consecutive 36-month period, rather than the current single-highest year formula.



December 11, 2012Page 2 of 4

concessions were required from the IAFF in order to implement the pension reformprovisions.

There are no employee pay raises for the first six months of the contract, which willmean no increase in employees' compensation for a period of six and one half yearsfrom June of 2007 through 2013. Wage increases effective the first full pay period in2014, 2015, and 2016 will be based upon 50% of the rate of growth during the previousfiscal year in the Balanced Revenue Index (BRI), with a minimum increase of1.5% anda maximum increase of 4% in 2014, and minimum increases of 2% and maximumincreases of 5% in 2015 and 2016. The BRI is comprised of the following five localAlameda taxes: General Fund Property Tax, 1% Bradley Burns Sales Tax, Utility UsersTax, Transient Occupancy Tax and Property Tax Transfer. The Miscellaneouscontracts agreed to earlier this year included the same wage increase formula.

Wage increases effective the first full pay period in 2017 will be based on the results ofa total compensation survey to be conducted in September 2016 of the followingagencies: Alameda County, Berkeley, Hayward, Fremont, and Livermore-Pleasanton.Salaries will be adjusted to the average of these five agencies.

An "Academy" level salary rate of 40% of the starting Firefighter salary is established fornew employees. In addition, the current Fire Educational Incentive Program will bediscontinued with the last 2012 pay period. A new Career Development IncentiveProgram will be implemented effective the beginning of the first full pay period inJanuary 2013, wherein a qualifying employee will receive 3%, 4%, and 5%,compounded, for achieving established standards in years of service, education,training, certification or qualification. Uniform Allowance is increased by $40 each yearof the contract.

In addition, IAFF has agreed to participate in employee cost sharing of health premiumsat a rate of 15% of the increase of Kaiser or Blue Shield premiums beginning January 1,2014, 25% of the increase of Kaiser or Blue Shield premiums beginning January 1,2015, 25% of the increase of Kaiser premiums beginning January 1, 2016, and 50% ofthe increase of Kaiser premiums beginning January 1, 2017. Notably, the City's basecontribution will drop from the Blue Shield premium to the Kaiser premium beginningJanuary 1, 2016, which is expected to significantly reduce the City's contribution to thehealth premium. Employee cost sharing of health increases will save the City ofAlameda an estimated $629,000 over the life of the contract. For dental, the City hasagreed to increase the benefit of the dental plan from 80% to 90% coverage of the costof services. The City has also agreed to contribute 50% of the cost of vision premiumsbeginning January 1, 2016. Dental and vision costs are increased a total of $75,000over the term of the contract.

Other changes to the IAFF MOU include:

• Implementation of a voluntary Catastrophic Leave Bank, wherein employees maycontribute unused vacation or compensatory time to other employees who have



sustained or whose immediate family member has sustained a serious orcatastrophic illness or injury.

• Establishment of an incentive for employees who do not use any sick leave in acalendar year, wherein they will receive an additional leave day, which may not becashed out.

e Permanent replacement of the established work sched ule with the 48/96suppression work schedule currently in place on a trial basis.

• Establishment of a retiree health benefits supplemental retirement plan into whichemployees hired after June 7, 2011 shall uniformly contribute 3% of base salary.Upon separation from service, the employee shall be allowed to contribute unusedvacation or compensatory time, and up to 50% of unused sick leave into the plan.

e Addition of another Disaster Preparedness Fire Captain position, increasing thenumber of Fire Captain positions from 20 to 21 and increasing the number ofauthorized sworn Fire positions from 98 to 99, excluding SAFER Grant-fundedFirefighter positions.





FINANCIAL IMPACT

The total net projected savings from the implementation of this contract (assuming theminimum level of growth in the BRI, stabilization of the employer portion of PERS rates,and exclusion of the revised Educational Incentive Program, results of the future salarysurvey, and additional proposed Disaster Preparedness Fire Captain) is estimated to be$528,000 over the life of the contract. The additional cost related to the implementationof the new Career Incentive Program is estimated to be $1,754,000 over the life of thecontract. The annual cost for the additional Fire Captain is estimated to beapproximately $218,000.

The fiscal impact of the adoption of this MOU for Fiscal Year 2012-13 is approximately$303,000, assuming the funding of the additional Fire Captain for the remaining sixmonths and factoring in additional costs relating to the adoption of the revisedEducational Incentive Program.

The services provided to the City by the IAFF are accounted for in the City's GeneralFund (Fund 001). The cost of the additional Fire Captain will also be accounted for in



the General Fund, and staff will look to allocate a portion of these costs to other fundsas part of the update to the City's Cost Allocation Plan for Fiscal Year 2013-14.

RECOMMENDATION

Adopt a Resolution approving the Memorandum of Understanding between theInternational Association of Firefighters and the City of Alameda, for the period of June30,2013 through June 24, 2017.





Exhibit:1. Memorandum of Understanding between the City of Alameda and the International

Association of Firefighters, Local Union No. 689 - on file in the City Clerk's office2. Summary MOU Cost Estimate


2012-13 2013-14 2014-15 2015-16 2016-17GRAND TOTAL

2013-2017



Police (252,057) (341,963) (436,003) (528,384) (1,558,407) Fire (289,710) (393,047) (501,135) (607,316) (1,791,208)


Police (12,363) (47,802) (198,553) (336,646) (595,364) Fire (14,839) (57,377) (218,205) (365,525) (655,946)

(27,202) (105,179) (416,758) (702,171) (1,251,310)


Police 62,545$ 209,735$ 380,716$ 467,054$ 1,120,050$ Fire 71,888 241,065 437,589 536,824 1,287,366

134,433 450,800 818,305 1,003,878 2,407,416


Police 23,423 76,448 134,964 160,900 395,735 Fire - 26,922 87,868 155,125 184,936 454,851

- 50,345 164,317 290,089 345,836 850,587


Fire 13,790 18,693 23,744 28,946 85,173 27,121 36,764 46,696 56,927 167,508


Fire 3,880 7,760 11,640 15,520 38,800 28,168 54,048 79,928 83,808 245,952


Fire 5,126 5,126 5,126 5,126 20,505 5,126 5,126 5,126 5,126 20,505


Police (N/A)Fire 3,000 3,000 3,000 3,000 12,000

3,000 3,000 3,000 3,000 12,000


Police - - 607 1,245 1,852 Fire - - 670 1,374 2,044

- - 1,277 2,619 3,896




Police 130,055 132,006 134,646 135,992 532,698 Fire 140,130 280,260 284,464 290,153 293,055 1,288,063

140,130 410,315 416,470 424,799 429,047 1,820,761



Fire 53,436 104,957 103,687 102,859 100,957 465,897 53,436 153,663 151,803 150,591 147,807 657,300









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Exhibit 2 to 5-B


E >.. APPROVING MEMORANDUM OF UNDERSTANDING~ ~ BETWEENcj ~ THE INTERNATIONAL ASSOCIATION OF FIREFIGHTERS, LOCAL 689

<C AND~ ~ THE CITY OF ALAMEDA FOR THE PERIOD COMMENCING

JUNE 30, 2013 AND ENDING JUNE 24,2017

WHEREAS, there has been submitted to this Council a Memorandum ofUnderstanding between the International Association of Firefighters, Local 689(IAFF) and the City of Alameda; and






AYES

NOES:

ABSENT:

ABSTENTIONS:



Resolution #5-Bi12-11-12





Re: Adopt a Resolution Approving a Memorandum of Understanding Betweenthe Alameda Police Managers Association and the City of Alameda for thePeriod Beginning June 30,2013 Through June 24,2017

BACKGROUND

The proposed Memorandum of Understanding (MOU) between the City of Alameda andthe Alameda Police Managers Association (APMA) is for the period of June 30, 2013through June 24, 2017. The MOU is on file in the City Clerk's office and will be subjectto administrative correction for clerical purposes as warranted.

DISCUSSION

The City of Alameda labor relations representatives have met in closed session with theCity Council to discuss negotiations with the APMA. This MOU is a result of thosenegotiations and falls within the parameters authorized by the City Council. Themembership of the APMA has approved this agreement.

As part of this MOU, the APMA has agreed to continue participation in the PERSVariable Employee Cost Sharing and increase the rate of participation by 1% each fiscalyear for four years. This agreement will result in raising the amount contributed byAPMA members to their pension premium by 67% (from 9% of salary to 15% of salary),for an estimated City savings of $230,000 over the life of the contract. Under therecently enacted State pension reform legislation, public agencies may impose amaximum employee contribution of 12% beginning January 1, 2018. This 15%contribution is 25% higher than the maximum the City would otherwise be able toimpose.

Furthermore, the members of APMA, along with other Safety employee groups, haveagreed to a final retirement benefit compensation calculation formula based on thehighest average annual pensionable compensation earned during a consecutive 36-month period, rather than the current single-highest year formula.




concessions were required from the APMA in order to implement the pension reformprovisions.

There are no employee pay raises for the first six months of the contract, which willmean no increase in employees' compensation for a period of six and one half yearsfrom June of 2007 through 2013. Wage increases effective the first full pay period in2014,2015, and 2016 will be based upon 50% of the rate of growth during the previousfiscal year in the Balanced Revenue Index (BRI), with a minimum increase of 1.5% anda maximum increase of 4% in 2014, and minimum increases of 2% and maximumincreases of 5% in 2015 and 2016. The BRI is comprised of the following five localAlameda taxes: General Fund Property Tax, 1% Bradley Burns Sales Tax, Utility UsersTax, Transient Occupancy Tax and Property Tax Transfer. The Miscellaneouscontracts agreed to earlier this year included the same wage increase formula. There isno pay increase in 2017.

The Educational Incentive Program, currently only available to employees hired prior toJuly 1, 1995, is eliminated with the expiration of the current MOU on June 29, 2013. AllAPMA members will receive 123.5 hours each year of paid Administrative Leave, whichmust used as time off and cannot be cashed out. This provision replaces any otherholiday pay leave bank benefit. A voluntary Physical Fitness Program is establishedwherein successful fitness testing by a participating employee will result in theemployee receiving an additional 10 hours of leave to be used as time off during thatcalendar year, with no option for cash-out. Uniform Allowance is increased by $276 in2013, and by $250 in both 2014 and 2015, with no increase in 2016.

In addition, APMA has agreed to participate in employee cost sharing of healthpremiums at a rate of 15% of the increase of Kaiser or Blue Shield premiums beginningJanuary 1, 2014, 25% of the increase of Kaiser or Blue Shield premiums beginningJanuary 1, 2015, 25% of the increase of Kaiser premiums beginning January 1, 2016,and 50% of the increase of Kaiser premiums beginning January 1, 2017. Notably, theCity's base contribution will drop from the Blue Shield premium to the Kaiser premiumbeginning January 1, 2016, which is expected to significantly reduce the City'scontribution to the health premium. Employee cost sharing of health increases will savethe City of Alameda an estimated $64,000 over the life of the contract. For dental, theCity has agreed to increase the benefit of the dental plan from 80% to 90% coverage ofthe cost of services. The City has also agreed to contribute 50% of the cost of visionpremiums beginning January 1, 2016. Dental and vision costs are increased by $2,000each year of the contract.

Other changes to the APMA MOU include:

e Implementation of a voluntary Catastrophic Leave Bank wherein employees maycontribute unused vacation time to other employees who have sustained orwhose immediate family member has sustained a serious or catastrophic illnessor injury.



1& Creation of an incentive for employees who do not use any sick leave in acalendar year, wherein they will receive 20 hours of additional leave.

It Assignment of an "Exclusive Use" City vehicle exclusively for City businesspurposes to all APMA members. The vehicle will be marked as an official Cityvehicle.





FINANCIAL IMPACT

There is no additional fiscal impact on Fiscal Year 2012-13 with the adoption of theMOU. The total net projected savings from the implementation of this contract(assuming the minimum level of growth in the BRI and stabilization of the employerportion of PERS rates) is estimated to be $83,000 over the life of the contract. Theservices provided to the City by the APMA are accounted for in the City's General Fund(Fund 001).

RECOMMENDATION

Adopt a Resolution approving the Memorandum of Understanding between theAlameda Police Managers Association and the City of Alameda, for the period of June30, 2013 through June 24, 2017.


M;lcLHolly Brock-CohnHuman Resources Director





Exhibit:1. Memorandum of Understanding between the City of Alameda and the Alameda

Police Managers Association - on file in the City Clerk's office2. Summary MOU Cost Estimate


2012-13 2013-14 2014-15 2015-16 2016-17GRAND TOTAL

2013-2017



Police (252,057) (341,963) (436,003) (528,384) (1,558,407) Fire (289,710) (393,047) (501,135) (607,316) (1,791,208)


Police (12,363) (47,802) (198,553) (336,646) (595,364) Fire (14,839) (57,377) (218,205) (365,525) (655,946)

(27,202) (105,179) (416,758) (702,171) (1,251,310)


Police 62,545$ 209,735$ 380,716$ 467,054$ 1,120,050$ Fire 71,888 241,065 437,589 536,824 1,287,366

134,433 450,800 818,305 1,003,878 2,407,416


Police 23,423 76,448 134,964 160,900 395,735 Fire - 26,922 87,868 155,125 184,936 454,851

- 50,345 164,317 290,089 345,836 850,587


Fire 13,790 18,693 23,744 28,946 85,173 27,121 36,764 46,696 56,927 167,508


Fire 3,880 7,760 11,640 15,520 38,800 28,168 54,048 79,928 83,808 245,952


Fire 5,126 5,126 5,126 5,126 20,505 5,126 5,126 5,126 5,126 20,505


Police (N/A)Fire 3,000 3,000 3,000 3,000 12,000

3,000 3,000 3,000 3,000 12,000


Police - - 607 1,245 1,852 Fire - - 670 1,374 2,044

- - 1,277 2,619 3,896




Police 130,055 132,006 134,646 135,992 532,698 Fire 140,130 280,260 284,464 290,153 293,055 1,288,063

140,130 410,315 416,470 424,799 429,047 1,820,761



Fire 53,436 104,957 103,687 102,859 100,957 465,897 53,436 153,663 151,803 150,591 147,807 657,300









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Exhibit 2 to 5-B


THE ALAMEDA POLICE MANAGERS ASSOCIATIONAND

THE CITY OF ALAMEDA FOR THE PERIOD COMMENCINGJUNE 30, 2013 AND ENDING JUNE 24,2017


WHEREAS, there has been submitted to this Council a Memorandum ofUnderstanding between the Alameda Police Managers Association (APMA) andthe City of Alameda; and






AYES

NOES:

ABSENT:

ABSTENTIONS:



Resolution #5-Bii12-11-12





Re: Adopt a Resolution Approving a Memorandum of Understanding Betweenthe Alameda Police Officers Association and the City of Alameda for thePeriod Beginning June 30,2013 Through June 24, 2017

BACKGROUND

The proposed Memorandum of Understanding (MOU) between the City of Alameda andthe Alameda Police Officers Association (APOA) is for the period of June '30, 2013through June 24, 2017. The MOU is on file in the City Clerk's office and will be subjectto administrative correction for clerical purposes as warranted.

DISCUSSION

The City of Alameda labor relations representatives have met in closed session with theCity Council to discuss negotiations with the APOA. This MOU is a result of thosenegotiations and falls within the parameters authorized by the City Council. Themembership of the APOA has approved this agreement.

As part of this MOU, the APOA has agreed to continue participation in the PERSVariable Employee Cost Sharing and increase the rate of participation by 1% each fiscalyear for four years. This agreement will result in raising the amount contributed byAPOA members to their pension premium by 67% (from 9% of salary to 15% of salary),for an estimated City savings of $1,328,000 over the life of the contract. Under therecently enacted State pension reform legislation, public agencies may impose amaximum employee contribution of 12% beginning January 1, 2018, This 15%contribution is 25% higher than the maximum the City would otherwise be able toimpose.

Furthermore, the members of APOA, along with other Safety employee groups, haveagreed to a final retirement benefit compensation calculation formula based on thehighest average annual pensionable compensation earned during a consecutive 36-month period, rather than the current single-highest year formula.




concessions were required from the APOA in order to implement the pension reformprovisions.

There are no employee pay raises for the first six months of the contract, which willmean no increase in employees' compensation for a period of six and one half yearsfrom June of 2007 through 2013. Wage increases effective the first full pay period in2014,2015, and 2016 will be based upon 50% of the rate of growth during the previousfiscal year in the Balanced Revenue Index (BRI), with a minimum increase of 1.5% anda maximum increase of 4% in 2014, and minimum increases of 2% and maximumincreases of 5% in 2015 and 2016. The BRI is comprised of the following five localAlameda taxes: General Fund Property Tax, 1% Bradley Burns Sales Tax, Utility UsersTax, Transient Occupancy Tax and Property Tax Transfer. The Miscellaneouscontracts agreed to earlier this year included the same wage increase formula.

Wage increases effective the first full pay period in 2017 will be based on the results ofa total compensation survey to be conducted in September 2016 of five cities that willbe determined through meet and confer in the summer of 2016, wherein 5, 10, 15, and20 years of service levels will be surveyed and averaged together. Salaries will beadjusted to the average of the five cities.

The current Educational Incentive Program, which is only available to employees hiredprior to July 1, 1995, is eliminated with the expiration of the current MOU on June 29,2013. A new Educational Incentive Program available to all APOAemployees will beimplemented effective the beginning of the first full pay period in July 2013. Under thisnew Program, qualifying employees will receive either $1,000 per year, or a 4%, 5%, or6% pay differential for achieving established standards of certification, education, andyears of service.

Minimum overtime for employees required to appear in court on a regularly scheduledday off will be increased to six hours, with one third to be placed in a compensatory timeoff bank only. Meal Allowance is raised to $25. A voluntary Physical Fitness Programis established wherein successful fitness testing by a participating employee will resultin the employee receiving an additional 10 hours of leave to be used as time off duringthat calendar year, with no option for cash-out. The Uniform Allowance is increased by$276 in 2013, and by $250 in both 2014 and 2015, with no increase in 2016.

In addition, APOA has agreed to participate in employee cost sharing of healthpremiums at a rate of 15% of the increase of Kaiser or Blue Shield premiums beginningJanuary 1, 2014, 25% of the increase of Kaiser or Blue Shield premiums beginningJanuary 1, 2015, 25% of the increase of Kaiser premiums beginning January 1, 2016,and 50% of the increase of Kaiser premiums beginning January 1, 2017. Notably, theCity's base contribution will drop from the Blue Shield premium to the Kaiser premiumbeginning January 1, 2016, which is expected to significantly reduce the City'scontribution to the health premium. Employee cost sharing of health increases will savethe City of Alameda an estimated $531,000 over the life of the contract. For dental, theCity has agreed to increase the benefit of the dental plan from 80% to 90% coverage of



the cost of services. The City has also agreed to contribute 500/0 of the cost of visionpremiums beginning January 1, 2016. Dental and vision costs are increased by a totalof $81 ,000 over the term of the contract.

Other changes to the APOA MOU include:

o Implementation of a voluntary Catastrophic Leave Bank wherein employees maycontribute unused vacation or compensatory time to other employees who havesustained or whose immediate family member has sustained a serious orcatastrophic illness or injury.

o Vacation accrual will be increased incrementally, resulting in one additional weekof vacation upon nine years of service and thereafter.

o Creation of an incentive for employees who do not use any sick leave in acalendar year, wherein they will receive 20 hours of additional leave, which maynot be cashed out.

o The number of sworn Police personnel, currently 88, will not be reduced duringthe life of the Alameda Fire Department SAFER Grant, and as part of every fiscalyear budget review, the City will look to fund additional sworn Police personnel.





FINANCIAL IMPACT

The total net projected savings from the implementation of this contract (assuming theminimum level of growth in the BRI, stabilization of the employer portion of PERS rates,and exclusion of the new Educational Incentive Program and results of the future salarysurvey) is estimated to be $264,000 over the life of the contract. The additional costrelated to the implementation of the revised Educational Incentive Program is estimatedto be $724,000 over the life of the contract.

There is no fiscal impact of the adoption of this MOU for Fiscal Year 2012-13. Theservices provided to the City by the APOA are accounted for in the City's General Fund(Fund 001).



RECOMMENDATION

Adopt a Resolution approving the Memorandum of Understanding between theAlameda Police Officers Association and the City of Alameda, for the period of June 30,2013 through June 24, 2017.





Exhibit:1. Memorandum of Understanding between the City of Alameda and the Alameda

Police Officers Association - on file in the City Clerk's office2. Summary MOU Cost Estimate


2012-13 2013-14 2014-15 2015-16 2016-17GRAND TOTAL

2013-2017



Police (252,057) (341,963) (436,003) (528,384) (1,558,407) Fire (289,710) (393,047) (501,135) (607,316) (1,791,208)


Police (12,363) (47,802) (198,553) (336,646) (595,364) Fire (14,839) (57,377) (218,205) (365,525) (655,946)

(27,202) (105,179) (416,758) (702,171) (1,251,310)


Police 62,545$ 209,735$ 380,716$ 467,054$ 1,120,050$ Fire 71,888 241,065 437,589 536,824 1,287,366

134,433 450,800 818,305 1,003,878 2,407,416


Police 23,423 76,448 134,964 160,900 395,735 Fire - 26,922 87,868 155,125 184,936 454,851

- 50,345 164,317 290,089 345,836 850,587


Fire 13,790 18,693 23,744 28,946 85,173 27,121 36,764 46,696 56,927 167,508


Fire 3,880 7,760 11,640 15,520 38,800 28,168 54,048 79,928 83,808 245,952


Fire 5,126 5,126 5,126 5,126 20,505 5,126 5,126 5,126 5,126 20,505


Police (N/A)Fire 3,000 3,000 3,000 3,000 12,000

3,000 3,000 3,000 3,000 12,000


Police - - 607 1,245 1,852 Fire - - 670 1,374 2,044

- - 1,277 2,619 3,896




Police 130,055 132,006 134,646 135,992 532,698 Fire 140,130 280,260 284,464 290,153 293,055 1,288,063

140,130 410,315 416,470 424,799 429,047 1,820,761



Fire 53,436 104,957 103,687 102,859 100,957 465,897 53,436 153,663 151,803 150,591 147,807 657,300









cc_user

Typewritten Text

Exhibit 2 to 5-B


THE ALAMEDA POLICE OFFICERS ASSOCIATIONAND

THE CITY OF ALAMEDA FOR THE PERIOD COMMENCINGJUNE 30, 2013 AND ENDING JUNE 24, 2017


WHEREAS, there has been submitted to this Council a Memorandum ofUnderstanding between the Alameda Police Officers Association (APOA) andthe City of Alameda; and






AYES

NOES:

ABSENT:

ABSTENTIONS:



Resolution #5-Biii12-11-12

CITY OFALAMEDA Memorandum To: Honorable Mayor and …

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