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10-119 Resolution No. 10-119 RESOLUTION AUTHORIZING EXECUTION OF AN ADDENDUM TO CONTRACT WITH LOCAL#439 INTERNATIONAL ASSOCIATION OF FIREFIGHTERS BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,ILLINOIS,that Sean R. Stegall,City Manager,be and is hereby authorized and directed to execute an addendum to contract on behalf of the City of Elgin with Local#439 International Association of Firefighters, a copy of which is attached hereto and made a part hereof by reference. s/Ed Schock Ed Schock, Mayor Presented: June 9, 2010 Adopted: June 9, 2010 Vote: Yeas: 5 Nays: 0 Attest: s/Diane Robertson Diane Robertson, City Clerk ADDENDUM TO CONTRACT BETWEEN CITY OF ELGIN AND LOCAL #439 INTERNATIONAL ASSOCIATION OF FIREFIGHTERS January 1, 2007 Through December 31, 2010 WHEREAS, on December 17, 2008 the Illinois Labor Relations Board, State Panel issued the Certification of Representative in Case No. S-RC-06-195 certifying Elgin Association of Fire Fighter, Local 439, International Association of Fire Fighters ("Local 439") as the exclusive bargaining unit including all full-time employees with the rank of Firefighters, Fire Lieutenants and Captains employed by the Fire Department of the City of Elgin ("City"); WHEREAS, when the parties negotiated their current collective bargaining agreement effective January 1 , 2007 through December 31, 2010 ("2007-2010 Agreement"), Captains were not included in the then existing Local 439 bargaining unit; and WHEREAS, the parties now agree to modify the 2007-2010 Agreement to include the Captains' terms and conditions of employment. NOW THEREFORE, the parties agree to amend their 2007-2010 Agreement as follows: Article 1. Recognition and Purpose of Agreement This Agreement is made by and between the City of Elgin (herein called "City") and Local #439, I.A.F.F. (herein called "Association") for and on behalf of all full-time Firefighters, Fire Lieutenants and Captains employed by the City. Each employee represented by the Association will receive a copy of this Agreement. The City recognizes the Association as the sole and exclusive bargaining representative for all full-time employees holding the official rank of Firefighter, Fire Lieutenant and Captain. It is the intent and purpose of this Agreement to set forth the parties' entire agreement with respect to the rates of pay, hours of employment, fringe benefits, and other conditions of employment that will be in effect during the term of this Agreement for employees covered by this Agreement; to prevent interruptions of work and interference with the operations of the City; to encourage and improve 1 efficiency and productivity; and to provide procedures for the prompt and peaceful adjustment of grievances as provided herein. Article 8. Salary Range Section a. Rate Review. The beginning Firefighter shall start at step one of the salary range as reflected in Article 9. He will be eligible to advance to step two of the Firefighter pay range after six (6) months employment and will be eligible to advance to further steps in said pay range at twelve (12) month increments thereafter until reaching the range maximum. The beginning Fire Lieutenant will start in a salary range as reflected in Article 9, which shall be one (1) step above the maximum pay step of the Firefighter's salary range and will be eligible to advance to further steps in said pay range at twelve (12) month increments thereafter until reaching the range maximum. The beginning Captain will start in a salary range as reflected in Article 9, which shall be one (1) full step above the maximum pay step of the Lieutenant's salary range and will be eligible to advance to further steps in said pay range at twelve (12) month increments thereafter until reaching the range maximum. Section b. Working Out of Class. Employees covered by this Agreement shall receive additional compensation for assigned work in a higher job classification. Compensation for such assigned responsibility shall be the difference between the straight time rate of: a) the top step of the Firefighter's salary range and the first step of the Fire Lieutenant's salary range when a Firefighter is so assigned, or b) the top step of the Fire Lieutenant's salary range and the first step of the Fire Captain's salary range when a Fire Lieutenant is so assigned, or c) effective June 1 , 2010, the top step of the Fire Captain's salary range and the next full step of the Battalion Chief's salary range when a Captain is so assigned, not to exceed maximum Battalion Chief pay. Article 9. Wages Section a. Ranges Effective July 1, 2008, the monthly and yearly salary ranges for employees covered by this Agreement shall be: Position I II III IV V VI VII Firefighter 4,442 4,734 5,031 5,330 5,624 5,920 N/A 53,298 57,807 60,368 63,955 67,490 71,038 N/A Lieutenant 6,381 6,666 6,939 N/A 76,569 79,986 83,274 N/A Captain 7,558 7,936 8,333 8,749 90,695 95,229 99,991 104,990 The foregoing base monthly and yearly salary ranges for the ranks of Firefighter and Lieutenant for July 1 , 2008 through December 31, 2008 reflect an across- the-board increase of (0.5%). Effective January 1, 2009, and retroactive thereto, the monthly and yearly salary ranges for employees covered by this Agreement shall be: Position I II III IV V VI VII Firefighter 4,619 4,923 5,232 5,543 5,849 6,157 N/A 55,430 59,079 62,783 66,513 70,190 73,880 N/A Lieutenant 6,636 6,932 7,217 N/A 79,632 83,186 86,604 N/A Captain 7,860 8,253 8,666 9,099 94,323 99,038 103,991 109,190 The foregoing base monthly and yearly salary ranges for the ranks of Firefighter, Lieutenant and Captain for 2009 reflect an across-the-board increase of four percent (4.0%). Effective July 1, 2009, the monthly and yearly salary ranges for employees covered by this Agreement shall be: Position I II III IV V VI VII Firefighter 4,642 4,948 5,258 5,570 5,878 6,187 N/A 55,707 59,375 63,097 66,846 70,541 74,249 N/A Lieutenant 6,669 6,967 7,253 N/A 80,030 83,602 87,037 N/A Captain 7,900 8,294 8,709 9,145 94,794 99,533 104,511 109,736 3 The foregoing base monthly and yearly salary ranges for the ranks of Firefighter, Lieutenant and Captain for July 1, 2009 through December 31, 2009 reflect an across-the-board increase of 0.5%. Effective January 1, 2010, the monthly and yearly salary ranges for employees covered by this Agreement shall be: Position I II III IV V VI VII Firefighter 4,851 5,171 5,495 5,821 6,143 6,466 N/A 58,214 62,047 65,936 69,854 73,715 77,590 N/A Lieutenant 6,969 7,280 7,580 N/A 83,631 87,364 90,954 N/A Captain 8,255 8,668 9,101 9,556 99,060 104,012 109,214 114,674 The foregoing base monthly and yearly salary ranges for the ranks of Firefighter, Lieutenant and Captain for 2010 reflect an across-the-board increase of four and one-half percent (4.50%). The foregoing salary increases are in addition to all in-range step increases to which employees may be eligible for on their anniversary dates during the term of this Agreement. Section c. Pension Pickup. The City agrees to pick up the employee's required pension contribution out of the employee's compensation and remit same to the Elgin Firemen's Pension Fund. The parties agree that the "pickup" of employees' required pension contributions represents an accounting procedure whereby employee pension contributions are treated as a form of deferred compensation, thereby tax sheltering such pension contributions until such time as pension payments are received. The provisions of this Section are subject to applicable Internal Revenue Service provisions governing same. The City shall through May 31, 2010, maintain for Captains the existing ICMA 401(a) Plan. The City shall through May 31, 2010, contribute 4% of the Captain's regular pay for each Captain contributing 2% to the City's Deferred Compensation Program pursuant to Section 401(a) of the Internal Revenue Code. Effective as of June 1, 2010, the ICMA 401(a) Plan will be terminated for all City employees and thereby all future payments by the City and retirement benefit accruals (equal to the annual four percent (4%) of Earnings) will cease. Notwithstanding anything else to the contrary in this Addendum or in the 2007- 2010 Agreement, Captains shall not receive the ongoing four percent (4%) longevity pay to be paid by the City in lieu of the 401(a) Plan to certain non- 4 bargaining unit employees. Starting June 1, 2010, the Plan will begin to be wound down and Captains can commence filing their distribution request paperwork to either take a distribution from the Plan or rollover the Plan account to another qualified eligible retirement plan or qualified Individual Retirement Account (IRA). Any such distribution or rollover shall be subject to all applicable requirements and limitations of law, including, but not limited to, all applicable Internal Revenue Service requirements and regulations. The parties acknowledge that the Captains are fully vested in the Plan benefit as of June 1, 2010, and their Plan benefit accrued through June 1, 2010, shall not be decreased. Section d. Longevity Pay. Effective January 1, 2007, employees (with the exception of Captains) with continuous service with the City in a position covered by this Agreement shall receive annual longevity pay in accordance with the following schedule: Years of Continuous Service Amount of Longevity Pay 10 years but less than 15 years $ 800 15 years but less than 20 years $1,200 20 years or more $1 ,600 Effective July 1, 2008, employees (with the exception of Captains) with continuous service with the City in a position covered by this Agreement shall receive annual longevity pay in accordance with the following schedule: Years of Continuous Service Amount of Longevity Pay 10 years but less than 15 years 1.13% of Step VI of the yearly salary for the Firefighter position 15 years but less than 20 years 1.7% of Step VI of the yearly salary for the Firefighter position 20 years or more 2.25% of Step VI of the yearly salary for the Firefighter position Effective January 1, 2009, employees (with the exception of Captains) with continuous service with the City in a position covered by this Agreement shall receive annual longevity pay in accordance with the following schedule: Years of Continuous Service Amount of Longevity Pay 10 years but less than 15 years 1.56% of Step VI of the yearly salary for the Firefighter position 15 years but less than 20 years 2.10% of Step VI of the yearly salary 5 for the Firefighter position 20 years or more 2.64% of Step VI of the yearly salary for the Firefighter position Effective July 1, 2009, employees (with the exception of Captains) with continuous service with the City in a position covered by this Agreement shall receive annual longevity pay in accordance with the following schedule: Years of Continuous Service Amount of Longevity Pay 10 years but less than 15 years 1.55% of Step VI of the yearly salary for the Firefighter position 15 years but less than 20 years 2.08% of Step VI of the yearly salary for the Firefighter position 20 years or more 2.62% of Step VI of the yearly salary for the Firefighter position Effective January 1, 2010, employees (with the exception of Captains) and effective June 1, 2010 for Captains with continuous service with the City in a position covered by this Agreement shall receive annual longevity pay in accordance with the following schedule: Years of Continuous Service Amount of Longevity Pay 10 years but less than 15 years 1.48% of Step VI of the yearly salary for the Firefighter position 15 years but less than 20 years 2.00% of Step VI of the yearly salary for the Firefighter position 20 years or more 2.51% of Step VI of the yearly salary for the Firefighter position Longevity pay shall be considered as part of the employee's base salary for the purpose of computing the hourly rate of pay for overtime pay purposes. Article 16. Group Hospitalization and Life Insurance (Sections a and b) Section a. Medical Insurance (PPO) • Up to March 1, 2010, up to June 1, 2010 for Captains, the City will pay ninety-one and one-half percent (91.5%) of the specified premium for the 6 coverage selected (i.e., single, single plus one or family), and the employee will pay via payroll deduction the remaining eight and one-half percent (8.5%) of the specified premium. • Effective March 1, 2010, and effective June 1, 2010 for Captains, the City will pay ninety percent (90%) of the specified premium for the coverage selected (i.e., single, single plus one or family), and the employee will pay via payroll deduction the remaining ten percent (10%) of the specified premium. Section b. Health Maintenance Organization (HMO) • Up to March 1, 2010, up to June 1, 2010 for Captains, the City will pay ninety-one and one-half percent (91.5%) of the specified premium for the coverage selected (i.e., single or family), and the employee will pay via payroll deduction the remaining eight and one-half percent (8.5%) of the specified premium. • Effective March 1, 2010, and effective June 1, 2010 for Captains, the City will pay ninety percent (90%) of the specified premium for the coverage selected (i.e., single or family), and the employee will pay via payroll deduction the remaining ten percent (10%) of the specified premium. Article 20. Grievance Procedure Section a. Definition of Grievance A grievance for the purpose of this Agreement is defined as a difference of opinion between an employee covered by this Agreement and the City with respect to the meaning or application of the expressed terms of this Agreement and matters involving the suspension or the removal or discharge from employment with the City of non-probationary employees covered by this Agreement. Such disciplinary grievances shall be initiated at Step two (2) of the grievance procedure. Section b. Grievance Procedure. Recognizing that any grievances should be raised and settled promptly, a grievance must be raised within seven (7) calendar days of the occurrence of the first event giving rise to the grievance. A grievance shall be processed as follows: Step 1: Written to Assistant Chief. The aggrieved employee, within seven (7) calendar days following the occurrence of the first event giving rise to the grievance, shall file with the Assistant Chief a grievance signed by the employee on a form provided by the City setting forth the complete facts on which 7 it is based, the specific contract provision(s) allegedly violated and the relief sought. The Assistant Chief, or his designee, shall give a written answer within seven (7) calendar days after receipt of the written grievance. Step 2: Appeal to Chief. If the grievance is not settled in Step 1, and the aggrieved employee and the Association decide to appeal, the Association shall, within seven (7) calendar days from receipt of the Step 1 answer, file with the Chief an appeal signed by the aggrieved employee and the appropriate Association representative. The Association representative (not to exceed two) and the Chief, or his designee, will discuss the grievance at a mutually agreeable time. If no agreement is reached in such a discussion, the Chief, or his designee, will give his answer in writing within seven (7) calendar days of the discussion. Step 3: Appeal to City Manager. If the grievance is not settled in Step 2 and the Association decides to appeal the Association shall, within seven (7) calendar days after receipt of the Step 2 answer, file a written appeal with the City Manager. A meeting between the City Manager, or his designee, and the appropriate Association representative will be held at a mutually agreeable time. If no settlement is reached at such meeting, the City Manager, or his designee, shall give his answer in writing within fourteen (14) calendar days of the meeting. Step 4 Arbitration. If the grievance is not settled in accordance with the foregoing procedure, the Association may refer the grievance to arbitration by giving written notice to the City Manager within fourteen (14) calendar days after receipt of the City's answer in Step 3 The parties shall attempt to agree upon an arbitrator promptly. In the event the parties are unable to agree upon an arbitrator, they shall jointly request the Federal Mediation and Conciliation Service to submit a panel of seven (7) arbitrators from Illinois, Wisconsin or Indiana who are members of the National Academy of Arbitrators. The parties shall alternatively strike one name at a time from the list until one name remains, with a coin toss being used to determine who strikes first; provided that either party, before striking any names, shall have the right to reject one panel of arbitrators. The arbitrator shall be notified of his selection by a joint letter from the City and the Association requesting that he set a time and place for hearing, subject to the availability of the 8 City, and Association representatives. The arbitrator shall have no authority to amend, modify, nullify, ignore, add to, or subtract from the provisions of this Agreement. He shall consider and decide only the specific issue submitted to him and his award and decision shall be based solely upon his interpretation of the meaning or application of the terms of this Agreement to the facts of the grievance presented. The decision of the arbitrator shall be final and binding. The costs of the arbitration proceeding, including the fee and expenses of the arbitrator, shall be divided equally between the City and the Association. Except as stated in this Addendum, the parties agree to maintain the status quo with respect to the terms and conditions of employment and past practices for the Captains that existed prior to Local #439, IAFF becoming the Captains' certified bargaining representative. Captains shall receive full pay for all paid hours retroactive to January 1, 2009. Notwithstanding the foregoing, or anything else to the contrary in this Addendum or in the 2007-2010 Agreement, no Firefighter, Lieutenant or Captain shall receive retroactive pay for working out of class pursuant to Article 8b or otherwise. International Association of Firefighters City of Elgin Local #439 • By: ' G' —C, ��z'C�vj1C� 4111 Date: t _ . _, 2010 Date: 614- `(2010 TL1- (s4 F:\Legal Dept\Agreement\IAFF Local#439\01-01-2007 to 12-31-2010\Addendum-clean-5-27-10.doc 9