AgdaPkt 2019-03-25 Joint SA PFA - Laserfiche WebLink

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6.K. - Page 2 of 190 Beginning in mid -2018, at the direction of City Council, City staff met and conferred with the IAFF and SEIU bargaining units, as their current agreements were set to expire on December 31, 2018 and January 31, 2019, respectively. In light of the anticipated budgetary challenges associated with increased pension costs as well as other looming financial uncertainties, City staff recommended modest compensation increases to address the rising cost of living, while continuing significant employee contributions to pension benefits, and implementing structural reforms to the retiree health program in order to reduce future liabilities. ANALYSIS The City and representatives of the IAFF and SEIU met and conferred in good faith and have reached agreement on the terms and conditions of the respective MOUS governing employees of the City who are members of those Associations for the period of January 1, 2019 through June 30, 2021 for IAFF, and for the period of February 1, 2019 through January 31, 2022 for SEIU. During negotiations, representatives of IAFF and SEIU agreed to address pension and retiree health care costs. Current members of IAFF and SEIU will continue to contribute significant sums to pension costs (7.75 to 16 percent of salary), and new members will be placed in a second tier for retiree health care that will reduce costs to the City. IAFF members also agreed to participate in further dialogue with the City to discuss the costs associated with health care provided to former City employees in the IAFF unit on industrial disability retirement (IDR). These agreements will allow the City to continue to provide essential services to residents and competitive compensation to City employees in the face of rising cost of living increases in the region, while also address the significant financial challenges posed to the City by rising pension and retiree health care costs. City management sincerely appreciates the willingness of those involved in the negotiations to agree to such terms, and values the City employees whose contributions will ensure the continued vitality of the City. The agreements before the Council provide the following terms: Duration of Agreement IAFF: Two and one-half years (January 1, 2019 — June 30, 2021) SEIU: Three years (February 1, 2019 —January 31, 2022) Salary 2019: Three percent (3%) cost of living increase for IAFF and SEIU. 2020: Three percent(3%)cost oflivingincrease for IAFF and SEIU. 2021: Three and one-half percent (3.5%) cost of living increase for IAFF. SEIU members will receive a two and one-half percent (2.5%) cost of living increase, plus an additional one percent (1%) increase if sales tax revenue for Fiscal Year 2019-20 meets or exceeds $24.5 million. Because the City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.org 245