City of Alameda Contract Period: June 30, 2013 June 24, 2017 1 - - PowerPoint PPT Presentation

City of Alameda Contract Period: June 30, 2013 – June 24, 2017

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 International Association of Firefighters, Local 689 (IAFF) represents

regular sworn Fire employees.

 Alameda Fire Management Association (AFMA) represents sworn Fire

management personnel.

 Alameda Police Officers Association (APOA) represents regular sworn

Police employees.

 Alameda Police Managers Association (APMA) represents sworn

Police management personnel.

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 1. Improving the City’s budget position,

both regarding short term cash flow, and with respect to long term liability for pension retirement and medical costs.

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• 1. Improving the City’s budget position, both

regarding short term cash flow, and with respect to long term liability for pension retirement and medical costs.

• 2. Incorporating into the contract all pre-

existing side-letters and benefits changes mandated by new California Public Pension Reform Law.

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• 1. Improving the City’s budget position, both

regarding short term cash flow, and with respect to long term liability for pension retirement and medical costs.

• 2. Incorporating into the contract all pre-existing

side-letters and benefits changes mandated by new California Public Pension Reform Law.

• 3. Creating more efficient delivery of service to the

public, with employee premium compensation based upon employee attainment in areas that can be

• bjectively demonstrated through education and

certification.

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• 1. Improving the City’s budget position, both regarding short term

cash flow, and with respect to long term liability for pension retirement and medical costs.

• 2. Incorporating into the contract all pre-existing side-letters and

benefits changes mandated by new California Public Pension Reform Law.

• 3. Creating more efficient delivery of service to the public, with

employee premium compensation based upon employee attainment in areas that can be objectively demonstrated through education and certification.

• 4. Settling the five year old grievance dispute between the City and

the International Association of Fire Fighters. This is estimated to cost the City more than $7M by 2017 if it is not settled.

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Financial Analysis of IAFF Grievance Exposure to City of Alameda Retention Pay Totals

• n Base Pay

Plus FLSA (Estimated 5%) Plus PERS Total Effect

FY 07/08 369,555 18,478 143,572 531,605 FY 08/09 418,369 20,918 162,537 601,824 FY 09/10 406,475 20,324 157,916 584,715 FY 10/11 422,750 21,137 164,238 608,126 FY 11/12 466,645 23,332 181,292 671,269 FY 12/13 478,913 23,946 186,058 688,916 Projected Exposure through 6/30/13 3,686,455 FY 13/14 561,464 28,073 207,741 797,278 FY 14/15 582,512 29,126 209,704 821,342 FY 15/16 624,119 31,206 218,441 873,766 FY 16/17 698,088 34,904 237,350 970,342 Additional Projected Exposure if new MOU not implemented 3,462,727 Total Projected Exposure $ 7,149,183 7

 Increases employee pension cost sharing by 1% each fiscal year for

four years.

 Raises the amount contributed by employees to their pension

premium by 67% 67% (from 9% of salary to 15% of salary).

 Estimated City savings over the life of the contracts:

• IAFF:

$1,668,000

• AFMA:

$ 123,000

• APOA:

$1,328,000

• APMA:

$ 230,000 Total $3,349,000

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 State pension reform limits imposition of

employee PERS contribution to 12% beginning January 1, 2018.

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 State pension reform limits imposition of employee

PERS contribution to 12% beginning January 1, 2018.

 Imposition of contract is complex and requires

special processes under both Alameda Charter and separate State Law.

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 State pension reform limits imposition of employee

PERS contribution to 12% beginning January 1, 2018.

 Imposition of contract is complex and requires

special processes under both Alameda Charter and separate State Law.

 The negotiated 15% voluntary contribution is 25%

25% highe her than the possible State maximum that can be achieved through imposition.

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 State pension reform limits imposition of employee PERS

contribution to 12% beginning January 1, 2018.

 Imposition of contract is complex and requires special processes

under both Alameda Charter and separate State Law.

 The negotiated 15% voluntary contribution is 25% h

higher er than the possible State maximum that can be achieved through imposition.

 Changes the final retirement benefit compensation calculation

formula from single-highest year to a consecutive 3-year period for new employees as well as current employees.

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 State pension reform limits imposition of employee PERS

contribution to 12% beginning January 1, 2018.

 Imposition of contract is complex and requires special processes

under both Alameda Charter and separate State Law.

 The negotiated 15% voluntary contribution is 25% h

higher er than the possible State maximum that can be achieved through imposition.

 Changes the final retirement benefit compensation calculation

formula from single-highest year to a consecutive 3-year period for new employees as well as current employees.

 State pension reform only mandates this 3-year averaging for

new employees.

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 State pension reform limits imposition of employee PERS

contribution to 12% beginning January 1, 2018.

 Imposition of contract is complex and requires special processes

under both Alameda Charter and separate State Law.

 The negotiated 15% voluntary contribution is 25%

25% h higher than the possible State maximum that can be achieved through imposition.

 Changes the final retirement benefit compensation calculation

formula from single-highest year to a consecutive 3-year period for new employees as well as current employees.

 State pension reform only mandates this 3-year averaging for new

employees.

 As mandated by State pension reform, new employees’ retirement

formula is 2.7% @ 57 yrs. old instead of 3% @ 50 yrs. old.

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 State pension reform limits imposition of employee PERS

contribution to 12% beginning January 1, 2018.

 Imposition of contract is complex and requires special processes

under both Alameda Charter and separate State Law.

 The negotiated 15% voluntary contribution is 25%

25% h higher than the possible State maximum that can be achieved through imposition.

 Changes the final retirement benefit compensation calculation

formula from single-highest year to a consecutive 3-year period for new employees as well as current employees.

 State pension reform only mandates this 3-year averaging for new

employees.

 As mandated by State pension reform, new employees’ retirement

formula is 2.7% @ 57 yrs. old instead of 3% @ 50 yrs. old.

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 2014 - 15% of the increase of Kaiser or Blue

Shield premiums beginning January 1

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 2014 - 15% of the increase of Kaiser or Blue

Shield premiums beginning January 1

 2015 - 25% of the increase of Kaiser or Blue

Shield premiums beginning January 1

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 2014 - 15% of the increase of Kaiser or Blue

Shield premiums beginning January 1

 2015 - 25% of the increase of Kaiser or Blue

Shield premiums beginning January 1

 2016 - 25% of the increase of Kaiser

er premiums beginning January 1

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 2014 - 15% of the increase of Kaiser or Blue

Shield premiums beginning January 1

 2015 - 25% of the increase of Kaiser or Blue

Shield premiums beginning January 1

 2016 - 25% of the increase of Kaiser

er premiums beginning January 1

 2017 - 50% of the increase of Kaiser

er premiums beginning January 1

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

2014 - 15% of the increase of Kaiser or Blue Shield premiums beginning January 1



2015 - 25% of the increase of Kaiser or Blue Shield premiums beginning January 1



2016 - 25% of the increase of Kais iser premiums beginning January 1



2017 - 50% of the increase of Kais iser premiums beginning January 1 Note: The basis of the City’s contribution to public safety employees health care premium moves down from the Blue Shield premium to the Kaiser rate on 1/1/16.



Estimated City Savings:

• IAFF:

$ 629,000

• AFMA:

$ 27,000

• APOA:

$ 531,000

• APMA:

$ 64,000 Total $1,251,000

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 No employee pay raises for the first six

months of the contracts.

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 No employee pay raises for the first six

months of the contracts.

 Wage increases effective the first full pay

period in 2014, 2015, and 2016 will be based upon 50% of the rate of growth during the previous fiscal year in the Balanced Revenue Index (BRI)

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 No employee pay raises for the first six months of the contracts.  Wage increases effective the first full pay period in 2014, 2015,

and 2016 will be based upon 50% of the rate of growth during the previous fiscal year in the Balanced Revenue Index (BRI)

• 2014 - minimum increase of 1.5% and a maximum increase of 4%

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 No employee pay raises for the first six months of the contracts.  Wage increases effective the first full pay period in 2014, 2015,

and 2016 will be based upon 50% of the rate of growth during the previous fiscal year in the Balanced Revenue Index (BRI)

• 2014 - minimum increase of 1.5% and a maximum increase of 4%
• 2015 - minimum increases of 2% and maximum increases of 5%

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 No employee pay raises for the first six months of the contracts.  Wage increases effective the first full pay period in 2014, 2015,

and 2016 will be based upon 50% of the rate of growth during the previous fiscal year in the Balanced Revenue Index (BRI)

• 2014 - minimum increase of 1.5% and a maximum increase of 4%
• 2015 - minimum increases of 2% and maximum increases of 5%
• 2016 - minimum increases of 2% and maximum increases of 5%

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 No employee pay raises for the first six months of the contracts.  Wage increases effective the first full pay period in 2014, 2015,

and 2016 will be based upon 50% of the rate of growth during the previous fiscal year in the Balanced Revenue Index (BRI)

• 2014 - minimum increase of 1.5% and a maximum increase of 4%
• 2015 - minimum increases of 2% and maximum increases of 5%
• 2016 - minimum increases of 2% and maximum increases of 5%

 2017 wage increases:

• AFMA and APMA: none
• IAFF and APOA:

based upon a survey of similarly sized East Bay departments.

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 IAFF: Establishes “Academy” level salary rate of 40% of starting

Firefighter.

• New employees attend the Academy for 16-18 weeks depending
• n expertise the Firefighter brings to the Academy.
• Five to eight employees attend the Academy each year depending
• n the hiring needs of the Fire Department.

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 Consists of the following five major revenues in the General Fund: 1.

Property Tax

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 Consists of the following five major revenues in the General Fund: 1.

Property Tax

2.

1% Bradley Burns Sales Tax

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 Consists of the following five major revenues in the General Fund: 1.

Property Tax

2.

1% Bradley Burns Sales Tax

3.

Utility Users Tax

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 Consists of the following five major revenues in the General Fund: 1.

Property Tax

2.

1% Bradley Burns Sales Tax

3.

Utility Users Tax

4.

Transient Occupancy (Hotel) Tax

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 Consists of the following five major revenues in the General Fund: 1.

Property Tax

2.

1% Bradley Burns Sales Tax

3.

Utility Users Tax

4.

Transient Occupancy (Hotel) Tax

5.

Property Transfer Tax

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 How does the BRI work?

• Two examples to demonstrate how this works :

Example 1

• In Fiscal Year 2011-12, revenues in this index total $100, and
• In Fiscal Year 2012-13, revenues in this index total $104
• The change in the BRI is 4/100 or 4%
• Therefore the employees for 2014 would be entitled to a raise of:
• 50% of the BRI or 2%
• [REMEMBER: in 2014 the minimum increase is 1.5% and the maximum is 4.0%]

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 How does the BRI work?

Example 2

• In Fiscal Year 2011-12, the revenues in this index total $100, and
• In Fiscal Year 2012-13, the revenues in this index total $98
• The change in the BRI is -2/100 or -2%
• 50% of the BRI is -1%. But employees would still receive the minimum increase of 1.5%

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 Increases the Uniform Allowance by:

• IAFF and AFMA:

$40 each year of the contract.

• APMA and APOA: $276 in July, 2013; $250 in both July, 2014

and July, 2015; no increase in July, 2016.

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 Increases the Uniform Allowance by:

• IAFF and AFMA:

$40 each year of the contract.

• APMA and APOA: $276 in July, 2013; $250 in both July, 2014

and July, 2015; no increase in July, 2016.

 Establishes a Voluntary Catastrophic Leave Bank similar to the one

already in place for all non-public safety employees. Employees can donate their vacation days or compensatory time to colleagues who have sustained, or whose family member has sustained, a catastrophic illness or injury.

 Employees who do not use any sick leave in a calendar year receive

the equivalent of 2 extra vacation days which may not be “cashed-

• ut.”

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 Dental Plan benefit to increase from 80% to 90% coverage of the cost

• f services.

 The City will contribute 50% of the cost of vision premiums

beginning January 1, 2016.

 Dental and vision costs therefore increase approximately

$160,000 - $172,000 over the term of the contract.

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 IAFF

• Eliminates current Educational Incentive Program.
• Establishes new Career Development Incentive Program.

Qualifying employees receive 3%, 4%, and 5% pay differential for achieving established standards in years of service, education, training, certification, or qualification. Estimated cost is $1,754,000 over four years.

• Adds a Disaster Preparedness Fire Captain position, increasing

authorized sworn Fire staffing from 97 to 98, including SAFER grant funded positions. [This position does not appear in the City’s “Summary of Costs.”]

 IAFF and AFMA

• Establishes permanent 48/96 work schedule.

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 AFMA

• Reestablishes the position of Deputy Fire Chief and eliminates one
• f the existing Division Chief positions.
• Division Chief shift coverage stipend increases by $250.
• Office assignment salary differential for Suppression Division

Chiefs increases from 2% to 5%.

 APMA and AFMA

• Assignment of an “Exclusive Use” City vehicles for official City

business only. The vehicles will be marked as offic icia ial l governme nment nt vehicle

• les. Unexcused violation of the “Exclusive Use” policy is a

terminable offense.

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 APMA

• Receives 123.5 hours each year of paid Administrative Leave,

non-cashable.

 APOA and APMA

• Eliminates current Educational Incentive Program.
• Establishes Voluntary Physical Fitness Program; details to be

negotiated.

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

APOA

• Implements new Educational Incentive Program. Qualifying employees

will receive the following premium pay for achieving the following standards of certification/education:

∘ $1000 Intermediate POST ∘ 4% Bachelors in a course of study related to law enforcement ∘ 5% Advanced POST ∘ 6% Masters in a course of study related to law enforcement

This education premium is limited to one category per employee (not “stackable”).

• Estimated Cost: $724,000 over 4 years.

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 APOA

• Incrementally increases vacation accrual, resulting in one

additional week of vacation upon nine years of service and thereafter.

• Sworn Police personnel of 88 cannot be reduced during the life of

the current Fire SAFER Grant which is scheduled to end September 21, 2014.

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Financial Analysis of IAFF Grievance Exposure to City of Alameda Retention Pay Totals

• n Base Pay

Plus FLSA (Estimated 5%) Plus PERS Total Effect

FY 07/08 369,555 18,478 143,572 531,605 FY 08/09 418,369 20,918 162,537 601,824 FY 09/10 406,475 20,324 157,916 584,715 FY 10/11 422,750 21,137 164,238 608,126 FY 11/12 466,645 23,332 181,292 671,269 FY 12/13 478,913 23,946 186,058 688,916 Projected Exposure through 6/30/13 3,686,455 FY 13/14 561,464 28,073 207,741 797,278 FY 14/15 582,512 29,126 209,704 821,342 FY 15/16 624,119 31,206 218,441 873,766 FY 16/17 698,088 34,904 237,350 970,342 Additional Projected Exposure if new MOU not implemented 3,462,727 Total Projected Exposure $ 7,149,183 43

 Do not account for:  1. Legal Costs  2. Impact on PERS Accounts

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45 Savings Costs PERS $ 3,349,000 Health Care $ 1,251,000 Regular Salaries $ 2,407,000 Increase in PERS/Medicare due to Salary Increases on Regular Salaries 850,000 Uniform Allowance 246,000 Dental Coverage 168,000 Career Development Incentive Program 1,754,000 Educational Incentive Program 724,000 Office Assistant Differential 20,000 Sick Leave 12,000 Vision 4,000 Total Savings $ 4,600,000 Total Costs $ 6,185,000 Net 4-year Costs $ 1,585,000

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Savings Costs PERS $3,349,000 Health Care $1,251,000 Regular Salaries $2,407,000 Other Costs $3,778,000 Total Savings $4,600,000 Total Costs $6,185,000 Net 4-year Costs $1,585,000 Projected exposure through 6/30/13 $3,686,455 Total Savings $2,101,455

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Savings Costs PERS $ 3,349,000 Health Care $1,251,000 Regular Salaries $ 2,407,000 Other Costs $ 3,778,000 Total Savings $ 4,600,000 Total Costs $ 6,185,000 Net 4-year Costs $ 1,585,000 Projected Exposure through FY 16/17 $ 7,149,183 Total Savings $ 5,564,183

Savings Costs Difference 2012 2012 - 13 13 $ - $ 193,000 $ ( (193, 93,00 000) 0) 2013 2013 - 14 14 569,000 812,000 (243, 3,00 000) 0) 2014 2014 - 15 15 840,000 1,282,000 (442, 2,00 000) 0) 2015 2015 - 16 16 1,354,000 1,820,000 (466, 6,00 000) 0) 2016 2016 - 17 17 1,837,000 2,078,000 (241, 1,00 000) 0) $ 4, $ 4,600 600,000 00 $ $ 6, 6,185 85,000 000 $(1,58 585, 5,00 000) 0)

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