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Agenda Item 22.

City Council Meeting

Meeting Date:	09/17/2019
FROM:	Bill Gallardo

Subject:

Approval of a Memorandum of Understanding between the City of Brea and the Brea Fire Management Association.

RECOMMENDATION

Adopt the resolution approving a Memorandum Of Understanding (MOU) with the Brea Fire Management Association (BFMA).

BACKGROUND/DISCUSSION

Over the last several months the City’s negotiation team has been meeting with various employee associations to try and reach agreement on terms and conditions of employment for new labor contracts (Memorandums of Understanding or MOUs). Six of the seven employee associations had recently agreed to contracts that were approved by the City Council in May. The remaining employee labor group, the Brea Fire Management Association, also recently ratified an agreement with similar conditions to the others.

Over the last few years contracts with employee associations have reflected modest changes to the terms of employment, reflecting the City’s concerns for maintaining a balanced budget with an eye towards sustaining healthy reserves. Like the other agreements, this MOU maintains that conservative approach. The MOU before the City Council is a two-year agreement dating back to March of 2018, with no salary increases the first year and a modest two percent (2%) cost of living adjustment in salaries is scheduled for the second year.

Moreover, health plan flexible benefits amounts for most employees have been frozen for several years now. As such, Brea has been falling behind the labor market in this area, while the costs for health insurance have been steadily rising. In recognition of this situation, effective January 1, 2020, this contract makes adjustments of between $50 and $100 per month for health benefits, depending on the employee’s family status, which is what the City Council authorized for other associations. The MOU also includes an update to how the tuition reimbursement program is administered and implements a cap on the lifetime maximum eligible reimbursement amount.

FISCAL IMPACT/SUMMARY

The City has been working to “hold the line” on fiscal improvements for several years now. However, these contract adjustments are needed for the City to stay competitive in the labor market if Brea is going to attract and maintain quality employees. The City’s bargaining team has been meeting in good faith with the Brea Fire Management Association resulting in a tentative agreement with this small employee association (3 members only). The estimated net general fund impact of entering into this agreement is as follows:
BFMA: 2018 - 2020
$12,744
The costs associated with the second year of this contract have already been factored into the FY 2019-2020 City Budget.

RESPECTFULLY SUBMITTED:

William Gallardo, City Manager
Prepared by:Mario E. Maldonado
Human Resources Manager
Concurrence:Cindy Russell
Administrative Services Director

Attachments
Resolution
Memorandum of Understanding