APPROVAL OF SIDE LETTER OF AGREEMENT REDUCING EMPLOYEE - PowerPoint PPT Presentation

APPROVAL OF SIDE LETTER OF AGREEMENT REDUCING EMPLOYEE COMPENSATION AND BENEFITS FOR COSTA MESA FIREFIGHTERS ASSOCIATION July 21, 2020

BACKGROUND On March 12, pursuant to Government Code Section 8558 (c) and Chapter 1 of Title 6 of the City of Costa Mesa Municipal Code, the City Manager and Director of Emergency Services issued an Emergency Declaration due to the unanticipated and deadly COVID-19 worldwide outbreak. • Devastating impacts on public health and mortality • Severe impact to the American economy • Numerous General Fund sources declining significantly including tax revenues (e.g. sales tax, hotel tax, and business license tax, etc.), fees, fines and charges.

BACKGROUND On May 19, staff presented an estimated deficit of $29.8M in the FY 2020-21 General Fund Budget FY 2020-21 General Fund Budget addresses the budget deficit in a multi-faceted approach. • Citywide department budget cuts that total $10M. • Defunding of 13.75 full-time and 3.7 part-time positions • Funding from Federal, State and County levels:  $900k County allocation to City of CARES Act funds  $1.4M state allocation of CARES Act Funds  $600,000 potential FEMA reimbursement • City reduced its ten percent (10%) employee furlough request to five percent (5%).

ANALYSIS At the June 25 th City Council meeting, side letters of agreement and resolutions reducing compensation and benefits were approved for: • Costa Mesa Police Association • Costa Mesa Police Management Association • Costa Mesa Fire Management Association • Costa Mesa Division Managers Association • Unrepresented Executive and Confidential Employees

ANALYSIS Costa Mesa Firefighters Association (CMFA) • Equivalent to a 5% reduction to the flexible benefit contribution in FY 2020-21 • Extension of current contract to June 30, 2024 • 14 Day FLSA period effective July 1, 2022 • “Me Too” Clause for salary adjustments in FY 2022-23 and FY 2023-24

FISCAL ANALYSIS • The Fiscal Year 2020-21 Adopted Budget includes a $3.2 million estimated savings amount for a 5% employee furlough. • The attached agreement, if approved, will generate $349,003 million in savings to the FY 2020-21 Adopted Budget. • These savings combined with the $2.7 million in savings from the agreements approved at the June 25 th City Council Meeting achieve $3 million in savings next year.

RECOMMENDATION • Approve Side Letter of Agreement between the City of Costa Mesa and the Costa Mesa Firefighters Association • Approved the streamlined Transparency in Labor Negotiations Fiscal Impact Analysis Report