5.6. SR 04-03-1995Item 5.6.
k River MEMORANDUM
TO: Mayor & City Council l
FROM: Lori Johnson, Asst. City Administrator ~~\
DATE: Apri13, 1995
SUBJECT: Fire Compensation Proposal
The City Council and Fire Department met jointly on March 6, 1995, to
discuss the work completed by the Fire Compensation Task Force. Following
discussion on the proposed compensation package, there were still several
items which needed to be resolved.
The main item of discussion centered around the total hourly pay amount.
The firefighters are requesting $22.25 per hour for all calls. The City Council
did not agree to that request; however, it was suggested that rate maybe
appropriate if it was based only on emergency call hours. The attached
• Exhibit titled Fire Compensation Supplemental Information indicates that
$22.25 would be similar to the rates paid for emergency calls only for 1992,
1993, and 1994. If the rate had been $22.25 in 1994, the City would have
paid an additional $2,459 for a total City contribution of $21,459 to the
retirement fund.
In addition, the proposed compensation package includes a request for double
pay for certain holidays and a two hour call out m;n;mum for calls between
10:00 p.m. and 6:00 a.m. There was discussion regarding what hours would
be included in night call out pay. The supplemental information sheet
attached shows the costs associated with various hours. If the hours change
from midnight to 6:00 a.m., the additional cost is estimated to be just over
$3,000. If night call out pay is given for hours between 10:00 p.m. and 6:00
a.m., the additional cost is estimated to be over $6,700. Unfortunately, I do
not have information available on holiday fires to provide cost estimates for
double pay on holidays As I stated in my previous memo, based on a survey
of numerous cities, no other city pays either holiday or night call out pay.
Another item included in the proposal was that the firefighters would be
included in the City pay resolution and receive annual review of their wages.
It is appropriate that firefighter pay be reviewed annually as part of the pay
• resolution; however, the firefighters should be aware that this does not
13065 Orono Parkway • P.O. Box 490 • Elk River, MN 55330 • (612) 441-7420 • Fax: (612) 441-7425
automatically guarantee an increase each year. It is anticipated that
• firefighter pay will be treated somewhat like part time liquor clerk pay has
been in the past whereby separate provisions apply to those positions.
Lastly, the remainder of the compensation package was reviewed by the
Council at the joint meeting. There were very few comments or concerns
regarding the remainder of the proposal. Briefly, those other items included
changing the pay structure, additional pay for training, and changing to a
defined contribution pension plan. If there are concerns on any other
components of the proposal, they should be brought up for discussion on
Monday.
In conclusion, in order to facilitate a change to defined contribution, the City
Council has indicated its desire to present a proposal to the firefighters
which will receive the votes necessary to approve the conversion. In that
regard, at Monday night's meeting the City Council should address the
following items:
Total hourly pay -data for 1992 to 1994 indicates that $2225 is an
appropriate level of pay for emergency calls only. All other hours
(e.g. training, work days, etc.) would receive only the base pay.
. • Double time holiday pay - of the cities surveyed, none paid a
premium for holiday hours.
Night call out pay -the information based on 1994 fire calls
indicates that the cost for the requested night call out pay between
10:00 p.m. and 6:00 a.m., would be over $6,700. The cost for
midnight to 6:00 a.m. would be approximately $3,000. Again, none
of the cities surveyed paid night call out pay.
Annual review of fire compensation - it is appropriate that the
firefighters be included in the pay resolution with the
understanding that this does not guarantee a COLA.
Once the Council finalizes its proposal to the firefighters, a Compensation
Task Force meeting will be held so that the proposal can be discussed. At
that point it is hoped that the proposal can be taken in front of the fire
membership for discussion.
•
FIRE COMPENSATION
Supplemental I of ormatio n
TOTAL HOURLY RATE EXCLUDING NON-EMERGENCY HOURS
Hours Total
!_ Year _ _ _ _Total_ _ _ _ Other Emergency x 58/hr_ State 2% City _ _ _ _Total_ Hourly
1994 5,907 1,487 4,420 535,360 541,526 519,000 S95,886 521.69
1993 5,277 1,772 3,505 528,040 538,514 519,000 585,554 524.41
1992 5,171 1,309 3,862 S30,896 538,590 519,000 588,486 S22.91
1994 NIGHT FIRE CALLS
Double
Time Period # Calls
---- # Firefighters__
-------- Time Out
------ Pay Cost__
-----
----------------------
10:00 p.m. TO 12:00 a.m. -----
29 16 1 53,712
12:01 a.m. to 6:00 a.m. 24 16 1 S3,072
Total 10:00 p.m. to 6:00 a.m. 53 16 1 56,784
For purposes of this data, non-emergency hours are all training, work day, and
all other non-emergency call hours.
•
3/31/95
SAN :- 1 6- 9 5 M O N 1 3 2 fi E L K R I W E R M A C H
JANUARY 10,.1995
COMPENSATION TASK FORCE
ELK RIVER FIRE DEPARTMENT
. SUMMARY OF PROPOSED FAIR COMPENSATION PACKAGE
u
P 0 2~ 6 3
THZS COMPENSATION PACKAGE WILL INCLUDE CHANGING -THE PENSION FROM
DEFINED BENEFIT TO DEFINED CONTRIBUTION. THIS CHANGE WILL BE DONE
IN A FAIR AND EQUITABLE WAY THAT WILL NOT REGRESS ANY PENSION
ACCOUNT BALANCES., THE CHANGE NEEDS TO BE DONE 30 THAT NO-FIRE
FIGHTER, WHETHER NEW OR LONG STANDING MEMBER, IS TREATED
DIFFERENTLY THA~i ANOTHER.
TOTAL BENEFIT WILL BE DEFINED AS FOLLOWS:
TOTAL BENEFIT= HOURLY PAY + BENEFIT PAY
HOURLY PAY IS DEFINED AS THE PAY THAT IS PAID DFRECTLY TO THE FIRE
FIGHTER.
BENEFIT PAY IS DEFINED AS THE PENSION PAY PER HOUR THAT GOES INTO
THE DEFINED CONTRIBUTION RETIREMENT PAY.
EMERGENCY).
ALL HOURS FOR TRAINING DRILLS AND FIRE RELATED SCHOOLING.
TOTAL BENEFIT HOURS WOULD BE APPLIED TO THE FOLLOWZNG HOURS:
HOURS WHILE ON A PAGED EMERGENCY CALL (MINIMUM 1 HOUR PER PAGED
HOURLY PAY ONLY...WOULD APPLY TO THE FALLOWING HOURS:
HOURS FOR COMMITTEE WORK THAT HAS BEEN PRE-APPROVED.
ALL WORK DUTY HOURS AT THE FIRE STATION.
ALL FIRE MEETINGS.
THE TOTAL BENEFIT PAYMENT WOULD BE MADE UP OF THREE FACTORS:
1) HOURLY WAGE PAID TO THE FIRE FIGHTERS.
2j THE 2$ STATE PENSION PAYMENT.
3) THE CITY OF ELK RIVER PENSION PAYMENT.
EXAMPLE: IF 5000 HOURS WERE PUT IN BY THE FIRE FIGHTERS IN ONE
CALENDAR YEAR 5000 hrs X $22.25 (RATE PAID IN 1991) = TOTAL
BENEFIT.
THE FIRE FIGHTERS WERE PAID $8.00 PER HOUR IN 1991, SO THE BENEFIT
PAY WOULD BE $22.25 LESS $8.00 = $14.25 PER HOUR. THE CITY PENSION
PAYMENT AND THE STATE 2$ PENSION PAYMENT WOULD BE 5000 X $14.25/hr,
WHICH WOULD BE PUT INTO THE RELIEF ASSOCIATION PENSION FUND FOR THE
FIRE FIGHTERS. THE CITY'S PENSION PAYMENT WILL FLUCTUATE WITH THE
HOURS PUT IN AND WITH WHAT THE STATE 2$ PENSION PAYMENT IS FROM THE
STATE OF MINNESOTA.
SPECIAL HOURLY PAY RATE WILL BE AS FOLLOWS:
HOLIDAYS WILL BE PAID AT A DOUBLE TIME RATE. THIS ONLY APPLIES TO
THE HOURLY PAY THAT THE FIRE FIGHTER RECEIVES AND NOT THE
BENEFIT PAY FATE. THESE HOLIDAYS ARE TO BE NEW YEARS DAY,
MEMORIAL DAY, 4th OF JULY, LABOR DAY, THANKSGIVING DAY,
CHRISTMAS EVE AND CHRISTMAS DAY.
NIGHT CALLS WOULD HAVE A 2 HOUR MINIMUM PAY BETWEEN THE HOURS OF
10:00 PM AND fi:00 AM.
•
J A N- 1 6- 9 5 M O N 1 3 2 7 E L K R I V E R M A C H P 0 3 i 0 3
HOURLY PAY WOULD HAVE A BASE RATE WITH THIS RATE CHANGING AS
FOLLOWS: PROBATIONARY FIRE FIGHTER BASE RATE LESS $1.00/hr
APPARATUS OFFICER BASE RATE PLUS $1.00/hr
CAPTAINS BASE RATE PLUS $1.00/hr
ASSISTANT CHIEFS BASE RATE PLUS $2.00/hr
THE INDIVIDUAL FIRE FIGHTER COULD INCREASE THEIR OWN BASE RATE BY
GETTING ADDITIONAL TRAINING. THE RATE WOULD CHANGE BY $0.50/hr
AFTER THE FIRST 60 HOiJRS OF FORhfAL TRAINING. FOR EACH ADDITIONAL 75
HOURS THE RATE WOULD INCREASE BY $0.25/hr. THE MINIMUM
PROBATIONARY TRAINING HOURS WOULD NOT COUNT TOWARDS THIS INDIVIDUAL
RATE CHANGE.
THE FIRE FIGHTERS WOULD GET THE SAME RAISE PERCENT AS THE REST OF
THE CITY EMPLOYEES GET. THIS WOULD BE APPLIED TO THE HOURLY RATE,
THE BENEFIT RATE AND THE TRAINING HOURLY PAY INCREASE.
THE PENSION PAY RATE WOULD BE THE TOTAL BENEFIT RATE LESS THE BASE
HOURLY RATE. AN INCREASE IN AN INDIVIDUAL'S PAY RATE WOULD NOT
EFFECT (LESSEN)•THE PENSION PAY RATE.
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