City Council Memorandum
TO: HONORABLE MAYOR AND CITY COUNCIL DATE: JUNE 13, 2023 FROM: HUMAN RESOURCES DEPARTMENT WARDS: ALL
SUBJECT: REVISIONS TO THE MEMORANDUM OF UNDERSTANDING WITH THE RIVERSIDE FIRE MANAGEMENT GROUP; AND ADOPT A RESOLUTION FOR RELATED REVISIONS TO THE MASTER FRINGE BENEFIT AND SALARY PLAN – SUPPLEMENTAL APPROPRIATION ISSUE:
Approve a successor Memorandum of Understanding with Riverside Fire Management for a contract term of January 1, 2023, through December 31, 2025.
RECOMMENDATION:
That the City Council:
Approve the attached Memorandum of Understanding (MOU) for the Fire Management Group effective January 1, 2023, through December 31, 2025, which incorporates the negotiated revisions, and authorize the City Manager, or designee, to execute the Memorandum of Understanding on behalf of the City; Adopt the attached Resolution amending the Master Fringe Benefits and Salary Plan to reflect the revised MOU provisions as outlined in Exhibit A attached thereto and other miscellaneous administrative language revisions; and With at least five affirmative votes, authorize the Chief Financial Officer or designee to record a supplemental appropriation in the amount of $110,000 in Fiscal Year 2022/23 in the applicable accounts.
BACKGROUND:
The City began labor negotiations with the Riverside Fire Management Group (RFMG) in March of 2023, as the MOU expired on December 31, 2022. Labor negotiation meetings continued through May 2023 until a mutual agreement was reached.
DISCUSSION:
The City entered and has successfully concluded labor negotiations with the RFMG. Provisions of the tentative agreements have been ratified by RFMG members as of the date of this council meeting. The tentative agreement reached between the City and the Union is herein presented for the City Council’s approval.
FIRE MANAGEMENT GROUP SUMMARY OF TERMS
Labor Contract Period: January 1, 2023, through December 31, 2025.
Salaries:
Date
Salary Increase
Year 1: Effective the first pay period following July 1, 2023, or after City Council approval, whichever is later, to all members 5% increase to base salary
Year 2: Effective the first pay period following July 1, 2024, to all members 3% increase to base salary
Year 3: Effective the first pay period following July 1, 2025, to all members 3% increase to base salary
All represented Riverside Fire Management City employees, as of the date payment is made, will receive a one-time non-PERSable stipend of $10,000 to be paid with the first pay period following City Council approval.
Salary and Benefit Relationship with Fire unit (RCFA): In accordance with Section 30 of the RFMG MOU salary and fringe benefit increases for Fire Battalion Chiefs will be at least equal to those received by the Fire Unit, if any. Therefore, Fire Management unit members will receive salary adjustment of 3.5% in July 2023 and 3.5% in July 2024 per a mutually agreed compensation study for the Fire unit. Furthermore, it was agreed to adjust the Fire Engineer salary by 1.5% in January 2024 and 1.5% in January 2025 to address the salary compaction with the Firefighter classification which will also be applied to the Fire Battalion Chiefs to address salary compaction.
Holidays: Add Juneteenth holiday effective 2023.
Salary Differentials/Certification Bonuses: Increase to maximum aggregate certification bonus from 15% to 16%.
CalPERS Retirement Cost-Sharing Provisions: For Tier 1 Classic employees (3%@50) effective the first pay period following July 1, 2023, or as soon as administratively possible employees will pay an additional 2% of salary to the employer CalPERS contribution for a total of 10%. Effective the first pay period following July 1, 2024, employees will pay an additional 1% of salary to the employer CalPERS contribution for a total of 11%. Effective the first pay period following July 1, 2025, employees will pay an additional 1% of salary to the employer CalPERS contribution for a total of 12%.
For Tier 2 Classic employees (3% @55), effective the first pay period following July 1, 2023, or as soon as administratively possible, employees will pay 1% of salary to the employer CalPERS contribution. Effective the first pay period following July 1, 2024, employees will pay an additional 1% of salary to the employer CalPERS contribution for a total of 2%. Effective the first pay period following July 1, 2025, employees will pay an additional 1% of salary to the employer CalPERS contribution for a total of 3%.
Deferred Compensation: The City will contribute an additional $50 per month toward the employee’s deferred compensation plan for a total of $250 per month.
Medical Insurance: Effective the first paycheck in December 2023: Increase $80 per month for Employee Plus 1 and $140 per month Employee Plus Family. Effective the first paycheck in December 2024: Increase $40 per month for Employee Plus 1 and $70 per month Employee Plus Family. Any increases in health insurance premiums each plan year will be divided equally between the City and employees.
Other changes: Additional miscellaneous changes have been made to non-economic terms throughout the contract, as reflected in the attached, red-lined MOU.
STRATEGIC PLAN ALIGNMENT:
This item contributes to Strategic Priority 5 – High Performing Government and Goal 5.1 – Attract, develop, engage and retain a diverse and highly skilled workforce across the entire City organization and aligns with each of the City’s Strategic Cross-Cutting Threads.
Community Trust – Fairly negotiated salary and benefits provide the City the ability to retain and attract skilled employees that can provide high quality of public service and increase community trust and engagement. The salary and benefits package is published and presented in this City Council Agenda to ensure all elements are visible and transparent.
Equity – The Union negotiation process ensures that employees receive fair wages, competitive benefits and good working conditions resulting in a workforce that, in turn, also serves the community in a fair and equitable way.
Fiscal Responsibility – To ensure responsible management of the City’s financial resources all fiscal impacts were carefully assessed by the City’s Finance and City Manager’s Departments.
Innovation – The City and Union engaged in creative discussions and sought solutions that would allow both parties to benefit from the updated/new provisions in the contract. Creative ideas from both parties were shared that allowed for a successful agreement.
Sustainability & Resiliency – The City of Riverside is committed to meeting the needs of its changing workforce while also implementing contracts that are sustainable to the City.
FISCAL IMPACT:
The total cumulative cost over the 3-year life of the MOU and the updated Master Fringe Benefits and Salary Plan is approximately $1.2 million. The cumulative fiscal impact is approximately $110,000 in FY 2022/23, $321,000 in FY 2023/24, $502,000 in FY 2024/25, and $307,000 through December of FY 2025/26. Upon Council approval a supplemental appropriation in the amount of $110,000 will be recorded in the General Fund in various Personnel expenditure accounts. Sufficient funds for the supplemental appropriation are available in General Fund available fund balance. Amounts for future fiscal years will be included in the budget requests for the applicable years.
Prepared by: Rene Goldman, Human Resources Director
Certified as to availability
of funds: Kristie Thomas, Assistant Chief Financial Officer Approved by: Edward Enriquez, Interim Assistant City Manager/Chief Financial Officer/City Treasurer
Approved as to form: Phaedra A. Norton, City Attorney
Attachments:
Redline Comprehensive Memorandum of Understanding for Riverside Fire Management Group Resolution Amending the Fringe Benefits and Salary Plan Exhibit A – Amended Fringe Benefits and Salary Plan
Revisions to Fire Mgmt MOUs – Page 2