3.0. SR 03-10-1997ity of
iver
FROM:
DATE:
SUBJECT:
MEMORANDUM
Mayor & City Council
Lori Johnson, Finance Director
March 10, 1997
Fire Department Compensation
Proposal
On October 19, 1993, the Fire Department Compensation Task Force held its first
meeting. The Mayor and I are City representatives on the task force which is
comprised of two representatives each from the fire department, Relief Association,
and City. The charge of the Task Force was to discuss changing from a defined
benefit to a defined contribution retirement plan and to review the total
compensation (hourly pay and retirement benefits) paid to the firefighters.
Since 1993, the task force has meet numerous times to try to reach an agreement on
pay and retirement issues, unfortunately, without success. The most recent
meeting of the Task Force was in September, 1995. The most recent Council
meeting discussing this issue was a joint meeting between the City Council and the
Fire Department on March 6, 1995. Again on April 3, 1995, the City Council
briefly discussed firefighter compensation and passed a motion endorsing the
Mayor's compensation proposal. In an effort to come to some conclusion on this
issue, a joint meeting with the fire department is scheduled for April 3 at the fire
station.
To update and prepare the Council for the joint meeting, a work session has been
scheduled for Monday. Most of the information will be presented verbally at the
meeting. I have, however, included a comparison of the two most recent proposals
which were presented by the Mayor and the Task Force. Please note that the fire
department voted down the Task Force proposal 25-1 in March, 1995. A vote of the
firefighters was never taken on the Mayor's proposal for various reasons which the
firefighters can explain at the joint meeting. It should also be noted that the Task
Force proposal included some areas of concern and discussion to both sides but,
even though there were questions and there was not total agreement on some parts
of the proposal, it should be presented to the Council and Firefighters.
Finally, if you would like to review some of the past minutes of the Task Force, they
are available at City Hall. At Monday's meeting both the Mayor and I can give you
a brief history of the activities of the Task Force. This is a complex issue which is
somewhat difficult to address in a condensed version so if you have questions or
want additional background, please feel free to call me.
13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425
FIREFIGHTER TOTAL COMPENSATION PROPOSALS
(These are the last proposals from the Mayor and Task Force. ,The Fire Department has not approved either proposal.)
IF CONVERSION IS MADE TO DEFINED CONTRIBUTION, ALL OF THE FOLLOWING PROVISIONS APPLY:
MAYOR'S PROPOSAL
April 27, 1995
RATE OF PAY
$22.25/hr for emergency calls
$8.00/hr for all other calls
HOLIDAY PAY
Double time for the following holidays:
New Years, Memorial Day, Forth of July, Labor Day
Thanksgiving, Christmas Eve and Christmas Day
PAY INCREASES
Firefighters would be considered as part of Pay Resolution
TASK FORCE PROPOSAL
January 10, ~ 995
RATE OF PAY
Total pay = Hourly Pay + Benefit Pay
($22.25) = ($8.00) + ($14.25) (1991 rate)
Hourly Pay = the $8.00/hour base
Benefit Pay = per hour amount contributed to the Relief Association
Total Pay is applied to all emergency calls (1 hr minimum), training,
and schooling.
Hourly pay is applied to pre-approved committee work, station
work duty hours, and meetings.
Benefit Pay = State Aid + City Contribution
As the Base Hourly Pay increases, the Total Pay would increase a
like amount.
HOLIDAY PAY
Double time for the following holidays:
New Years, Memorial Day, Forth of July, Labor Day
Thanksgiving, Christmas Eve and Christmas Day
PAY INCREASES
Firefighters would get same COLA as non-union employees; COLA
would be applied to hourly, benefit and training rates
PAY STRUCTURE
Base $8.00/hr.
Probationary $7.00/hr.
Apparatus Officer $9.00/hr.
Captain $9.00/hr.
Assistant Chief $10.00/hr.
PAY STRUCTURE
Base $8.00/hr.
Probationary $7.00/hr.
Apparatus Officer $9.00/hr.
Captain $9.00/hr.
Assistant Chief $10.00/hr.
s:/FIRFEB97.XLS Page 1 of 2
FIREFIGHTER TOTAL COMPENSATION PROPOSALS
(These are the last proposals from the Mayor and Task Force. The Fire Department has not approved either proposal.)
IF CONVERSION IS MADE TO DEFINED CONTRIBUTION, ALL OF THE FOLLOWING PROVISIONS APPLY:
MAYOR'S PROPOSAL
April 27, 1995
TRAINING PAY
Applies to formal training in excess of probationary requirements
Additional $0.50/hr for first 60 hours of additional training
Additional $0.25/hr for each additional 75 hours of additional training
NIGHT CALL
None
TASK FORCE PROPOSAL
January 10, 1995
TRAINING PAY
Applies to formal training in excess of probationary requirements
Additional $0.50/hr for first 60 hours of additional training
Additional $0.25/hr for each additional 75 hours of additional training
NIGHT CALL
Two hour minimum payment for emergency calls between 10:00 p.m.
and 6:00 a.m.
OTHERISSUES
CONVERSION SHORTFALLS
The City would cover any conversion shortfalls in beginning
balance allocations.
DEATH BENEFIT
For current firefighters, a death benefit would never be lower than
the amount currently available under the defined benefit plan. The
City would cover any shortfall in the difference between the
amount available under the defined contribution plan and the
amount which would have been available under the defined
benefit plan.
BEGINNING BALANCE ALLOCATION
The firefighters are to select the method of initial allocation of funds.
(usually based on Service Only or Actuarial Calculations)
CONVERSION FAIRNESS
'The change would be made in a fair and equitable way that would
not regress any pension account balances.'
s:/FIRFEB97.XLS Page 2 of 2