AgdaPkt 2015-02-09 Closed and Joint SA

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7.2.A. - Page 3 comparable Bay Area agencies which found that the current salary range is significantly below market. Health care Consistent with cost - sharing agreements negotiated with other groups, IAFF members will begin paying a portion of their health care premiums. In 2016, the City will reduce its contribution to health care premiums to 90% of the selected plan, up to a maximum of 90% of the CaIPERS Kaiser family rate. In addition, the agreement reduces the option of cash in -lieu of medical coverage from 50% of the total premium cost to a flat rate of $200 per month, consistent with other employee groups. Other Economic Provisions Additional economic provisions include: • A pilot program granting 5% incentive pay for a set, limited number of fire boat operators, during the hours engaged in boat operations and training. The pilot program will be in effect until June 30, 2016. • Uniform allowance increase from $720 to $740 annually. ALTERNATIVES Council could choose to not approve the tentative agreement and instead direct staff to reopen negotiations with IAFF. FISCAL IMPACT The proposed Tentative Agreement is expected to result in a cumulative cost of approximately $1.8 million over four fiscal years, which averages to $450,000 per year. With the implementation of increased pension cost - sharing and a new provision for employee health care cost - sharing for IAFF members, the cost of this agreement is below the City budget projections previously developed and presented during the last budget process. It is important to note that approximately twenty -six percent (26 %) of this cost is covered by the fire services agreement with San Carlos, which includes twenty -one (21) dedicated IAFF full -time positions. Projections related to this agreement have included cost adjustments consistent with those resulting from this Tentative Agreement. ENVIRONMENTAL REVIEW This activity is not a project under CEQA as defined in CEQA Guidelines, section 15378, because it has no potential for resulting in either a direct or foreseeable physical change in the environment.