DATE: June 25, 2024
TO: Mayor and City Council
FROM: Director of Human Resources
SUBJECT
Title
Adopt a Resolution to Execute a Side Letter of Agreement Amending the Memoranda of Understanding (MOU), Article 13.01 Fire Education Incentive Program between the City of Hayward (“City”) and the Hayward International Association of Firefighters (“IAFF”), Local 1909 and Hayward Fire Officers Association (“HFOA”), to Clarify the Eligibility Requirements for All Eligible Members with Respect to the Fire Education Incentive Program
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RECOMMENDATION
Recommendation
That the Council adopts the resolution (Attachment II) for the side letter of agreement
amending the Local 1909 and HFOA MOUs, Article 13.01 Fire Education Incentive Program provision between the City and Unions, to clarify the eligibility requirements for all eligible members with respect to the Fire Education Incentive program.
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SUMMARY
In February 2024, California Public Employees’ Retirement System (“CalPERS”) noticed an employee through a “compensation compliance review” that there appeared to be a misapplication of the educational incentive pay within the current MOU, to a retirement benefit. CalPERS has determined that the existing MOU Language conflicts with California Code of Regulations (“CCR”) Section 571(a); and therefore, does not allow for the education incentive currently received by employees to be counted as pensionable compensation. It was, and remains, the intent of the parties that the education incentive be counted as special compensation and available to all members of the bargaining unit who obtain the requisite education.
As a result, the City and the Unions have met and conferred on the matter and entered into this Side Letter of Agreement (Attachment III) to clarify MOU language with respect to the Fire Education Incentive program and ensure compliance with CCR and CalPERS guidelines.
ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution
Attachment III Side Letter of Agreement