CITY OF HOUSTON Sylvester Turner Mayor PO. Box 1562 Houston, Texas 77251-1562 Telephone 832-393-1011 April 17, 2019 Mr. Patrick ?Marty? Lancton President Houston Professional Fire Fighters Association, IAFF Local 341 1907 Freeman Street Houston, Texas 77009 Re: Prop Proposal Dear Marty: As a follow up to our meeting on Monday, April 15, 2019, please see attached additional information requested regarding a comparison of incentive pay for Police and Fire. For your reference, I have also attached financial calculations of prop phase in over 3.5 years. This information was provided to you at our meeting on Monday. have repeatedly stated that we could avoid layoffs of Municipal workers and firefighters if Prop was phased in over five years. Anything less than 5 years would require some layoffs without an identified funding source. With that said, you have proposed a 3.5 year payout. Phasing in Prop over 3.5 years would require 47 layoffs of firefighter cadets. This information was also shared with you at our meeting on Monday, April 15, 2019. Council Members: Brenda Stardig Jerry Davis Ellen R. Cohen Dwight A. Boykins Dave Martin Steve Lee Greg Travis Karla Cisneros Robert Gallegos Mike Laster Martha Castex-Tatum Mike Knox David W. Robinson Michael Kubosh Amanda Edwards Jack Christie Controller: Chris Brown City of Houston Prop Phase in over 3.5 Years Based on Payroll Data as of December 2018 Jan - June . Base Salary FY2019 FY2020 FY2021 FY2022 FY2023 Total 18+ years 4% 2,484,701 17,469,362 - - - 19,954,063 Less than 18 years 4% 3,614,652 3,642,457 21,771,329 - - 29,028,439 18+ years - 3% - - - 2,816,637 - 2,816,637 Less than 18 - 3% - - - 4,168,931 - 4,168,931 Total Base Salary 6,099,354 21,111,819 21,771,329 6,985,568 - 55,968,071 Incentive 1,134,092 3,197,358 2,129,134 2,129,134 - 8,589,719 Overtime 209,690 1,038,699 430,070 679,824 - 2,358,283 Pension 2,349,901 7,910,358 7,811,937 2,934,114 - 21,006,310 FICA 106,325 362,743 349,592 138,820 - 957,479 Total Cost 9,899,362 33,620,977 32,492,063 12,867,461 - 88,879,862 [Total Cumulative Cost 9,899,362 43,520,339 76,012,402 88,879,862 88,879,862 307,191,828 Base Pay Allocation 18+ years Allocation) 25% 75% - - - 100% Less than 18 years - Allocation) 25% - 75% - - 100% 18+ years Allocation) - - 100% - 100% Less than 18 years - Allocation) - - - 100% - 100% Incentive Pay Allocation Allocation By Year 25% 25% 25% 25% - 100% Base Pay Percent Equivalent Year to Year 6.5% 7.4% 10.1% 2.9% 0.0% FY to Base (Current FY19) 6.5% 14.4% 25.9% 29.6% 29.6% 3.5 Year Base Salary Detail Fire?ghters with 18+ years of Service Prepared on 04/15/2019 Base Pay 2.5% of HPD 4% Increase - FY2019 100% of HPD 4% Increase - FY2020 100% of HPD 3% Increase - FY2022 Variance against Current HPD HPD 25% of Revised FY19 FY20 75% of Revised FY20 100% of Revised FY22 HPD Rate Classi?cation Count HFD Rates 4% Increase 3% Increase Parity HFD Rate 13.0 13.1 Parity HFD Rate 26.1 Parity HFD Rate 26.1 FY20 FY22 Fire?ghter (Base Probationary) 17th Yr 212 2,354.85 2,724.66 2,806.40 92.45 2,447.30 254,799.09 256,759.08 277.36 2,724.66 1,534,674.52 81.74 2,806.40 452,282.66 0.00 0.00 Engineer (Base 3-4 yrs) 17th Yr 399 2,429.45 3,037.68 3,128.81 152.06 2,581.51 788,722.25 794,789.35 456.17 3,037.68 4,750,534.80 91.13 3,128.81 949,022.87 0.00 0.00 Captain (Base 5-9 yrs) 17th Yr 357 2,699.28 3,501.82 3,606.87 200.64 2,899.92 931,147.04 938,309.70 601.91 3,501.82 5,608,370.22 105.05 3,606.87 978,867.25 0.00 0.00 Sr Captain (Base 7-9 yrs) 17th Yr 98 3,013.65 3,924.69 4,042.43 227.76 3,241.41 290,166.24 292,398.29 683.28 3,924.69 1,747,693.58 117.74 4,042.43 301,157.16 0.00 0.00 District Chief (9th yr) 17th Yr 35 3,445.77 4,632.86 4,771.85 296.77 3,742.54 135,031.49 136,070.19 890.32 4,632.86 813,305.04 138.99 4,771.85 126,963.53 0.00 0.00 Deputy Chief (11th yr) 17th Yr 2 3,826.15 5,327.79 5,487.62 375.41 4,201.56 9,760.65 9,835.74 1,126.23 5,327.79 58,789.17 159.83 5,487.62 8,343.32 0.00 0.00 Pending Approval Asst Chief (Base 1-2 yrs) 5 4,455.22 6,680.77 6,680.77 556.39 5,011.61 36,165.13 36,443.32 1,669.16 6,680.77 217,825.36 0.00 6,680.77 0.00 0.00 0.00 3rd Yr 1 4,565.91 6,680.77 6,680.77 528.72 5,094.62 6,873.30 6,926.17 1,586.15 6,680.77 41,398.42 0.00 6,680.77 0.00 0.00 0.00 6th Yr 1 4,679.16 6,680.77 6,680.77 500.40 5,179.56 6,505.24 6,555.28 1,501.21 6,680.77 39,181.55 0.00 6,680.77 0.00 0.00 0.00 Pending Approval Exec. Ass. (Base 1-2 yrs) 1 4,900.74 7,642.00 7,642.00 685.31 5,586.06 8,909.08 8,977.61 2,055.94 7,642.00 53,660.09 0.00 7,642.00 0.00 0.00 0.00 3rd Yr 1 5,022.50 7,642.00 7,642.00 654.87 5,677.38 8,513.36 8,578.85 1,964.62 7,642.00 51,276.65 0.00 7,642.00 0.00 0.00 0.00 6th Yr 1 5,147.07 7,642.00 7,642.00 623.73 5,770.81 8,108.51 8,170.88 1,871.19 7,642.00 48,838.16 0.00 7,642.00 0.00 0.00 0.00 Base Salary 2,484,701.38 2,503,814.47 14,965,547.55 2,816,636.79 Count 1,113 Pension (32.99%) 819,702.99 826,008.39 4,937,134.14 929,208.48 FICA 36,028.17 36,305.31 217,000.44 40,841.23 Note: Total 3,340,432.54 3,366,128.17 20,119,682.13 3,786,686.50 (1) Effective July 1, 2019 (FY2020) (2) Effective July 1, 2020 (FY2021) (3) Police Assistant Chief and Executive Assistant Chief are not part of Houston Police Officers Union 3.5 Year Base Salary Detail Fire?ghters with less than 18 years of Service Prepared on 04/15/2019 Base Pay 25% of HPD 4% Increase - FY2019 100% of HPD 4% Increase - FY2021 100% of HPD 3% Increase - FY2022 Variance against Current HPD HPD 25% of Revised FY19 FY20 75% of Revised FY21 100% of Revised FY22 HPD Rate Classi?cation Count HFD Rates 4% Increase 3% Increase Parity HFD Rate 13.0 13.1 Parity HFD Rate 26.1 Parity HFD Rate 26.1 FY21 FY22 Fire?ghter (Base Probationary) 79 1,545.01 1,615.38 1,615.38 17.59 1,562.60 18,067.50 18,206.48 52.78 1,615.38 108,821.93 0.00 1,615.38 0.00 0.00 0.00 Yr 116 1,674.16 2,066.20 2,128.19 98.01 1,772.17 147,799.08 148,936.00 294.03 2,066.20 890,205.23 61.99 2,128.19 187,668.81 0.00 0.00 2ndy Yr 239 1,761.20 2,278.27 2,346.62 129.27 1,890.47 401,634.12 404,723.62 387.80 2,278.27 2,419,073.21 68.35 2,346.62 426,348.61 0.00 0.00 3rd Yr 452 1,853.45 2,335.20 2,405.26 120.44 1,973.89 707,690.75 713,134.53 361.31 2,335.20 4,262,475.83 70.06 2,405.26 826,464.64 0.00 0.00 5th Yr 226 1,969.00 2,412.82 2,485.20 110.96 2,079.96 325,985.79 328,493.37 332.87 2,412.82 1,963,437.49 72.38 2,485.20 426,967.80 0.00 0.00 8th Yr 163 2,024.78 2,522.45 2,598.12 124.42 2,149.20 263,640.68 265,668.69 373.25 2,522.45 1,587,928.11 75.67 2,598.12 321,937.77 0.00 0.00 11th Yr 81 2,132.19 2,724.66 2,806.40 148.12 2,280.31 155,967.73 157,167.48 444.35 2,724.66 939,405.62 81.74 2,806.40 172,806.11 0.00 0.00 14th Yr 275 2,223.65 2,724.66 2,806.40 125.25 2,348.90 447,777.69 451,222.13 375.76 2,724.66 2,696,999.46 81.74 2,806.40 586,687.41 0.00 0.00 Engineer (Base 34 yrs) 10th Yr 135 2,405.39 2,774.21 2,857.44 92.21 2,497.60 161,819.78 163,064.54 276.62 2,774.21 974,652.95 83.23 2,857.44 293,247.87 0.00 0.00 Captain (Base 5-9 yrs) 12 2,472.04 3,331.58 3,431.53 214.89 2,686.93 33,522.06 33,779.92 644.66 3,331.58 201,905.95 99.95 3,431.53 31,303.53 0.00 0.00 10th Yr 274 2,558.56 3,437.72 3,540.85 219.79 2,778.35 782,891.98 788,914.23 659.37 3,437.72 4,715,418.62 103.13 3,540.85 737,535.32 0.00 0.00 Sr Captain (Base 7?9 yrs) 1 2,759.95 3,709.47 3,820.75 237.38 2,997.33 3,085.94 3,109.68 712.14 3,709.47 18,586.85 111.28 3,820.75 2,904.52 0.00 0.00 10Th Yr 47 2,856.54 3,829.21 3,944.09 243.17 3,099.71 148,575.34 149,718.23 729.50 3,829.21 894,880.72 114.88 3,944.09 140,918.76 0.00 0.00 District Chief (9th yr) 3,159.72 4,273.87 4,402.09 278.54 3,438.26 0.00 0.00 835.61 4,273.87 0.00 128.22 4,402.09 0.00 0.00 0.00 10th Yr 4 3,269.04 4,514.73 4,650.17 311.42 3,580.46 16,193.97 16,318.54 934.27 4,514.73 97,537.53 135.44 4,650.17 14,140.13 0.00 0.00 17th Yr 3,445.77 4,632.86 4,771.85 296.77 3,742.54 0.00 0.00 890.32 4,632.86 0.00 138.99 4,771.85 0.00 0.00 0.00 Count 2,104 Base Salary 3,614,652.41 3,642,457.42 21,771,329.49 4,168,931.29 Pension (32.99%) 1,192,473.83 1,201,646.70 7,182,361.60 1,375,330.43 Total Count 3,217 FICA 52,412.46 52,815.63 315,684.28 60,449.50 Total 4,859,538.69 4,896,919.76 29.269.375.36 5,604,711.23 Note: (1) Effective July 1, 2019 (FY2020) (2) Effective July 1, 2020 (FY2021). As per HPD Meet and Confer, rate for probationary of?cer remains at $1,615.38 biweekly. General Fund Incentive Pay Comparison Police Fire Prop Fire Incentive Pay FY2019 Budget FY2019 Budget Incremental Adj Revised Budget Salary Assignment Pay* 1,693,506 7,184,757 7,184,757 Patrol Incentive Pay 2,842,000 1,763,000 1,763,000 Investigator Pay 970,000 - - Education Pay 11,943,765 - 1,399,482 1,399,482 Bilingual Pay 2,340,483 1,262,256 1,262,256 Equipment Allowance 10,693,228 3,496,000 3,496,000 Shift Differential 4,377,073 - 41,559 41,559 Certification pay 30,526,851 5,465,295 975,048 6,440,343 Weekend Premium 3,760,504 - 31,622 31,622 Clothing Allowance 1,283,200 74,000 - 74,000 Health Trust 3,838,713 883,008 883,008 Total Payroll Incentive Pay 74,269,323 13,986,308 8,589,719 22,576,027 Overtime 9,500,679 16,250,000 2,358,283 18,608,283 Temporary Higher Class 200,805 1,300,000 - 1,300,000 Tuition Reimbursement 1,040,000 TBD Other Pays Reimbursements 10,741,484 17,550,000 2,358,283 19,908,283 Total Incentive &Other Pays 85,010,807 31,536,308 10,948,002 42,484,310 Salary Assignment Pay - Police and Fire: This account includes the budgeted amount for multiple sub categories below. These categories are not budgeted individually since they are assigned as required for specificjob related duties Police: Mentoring Pay Field Training Field Training Evaluator Pay Field Training Officer Program SWAT Responder Pay SWAT Bomb Squad Canine Pay Dive Team Helicopter Pay Fire: Field Training Officer Suppression Field Training Officer Non Suppression Paramedic/EMT Preceptor Pay Paramedic Restricted Paramedic no restricted Paramedic Officer Program Pay Paramedic Non Restricted Admin Pay Paramedic Non Restrict Adm EMT Admin Assignment EMT Suppression HAZMAT District Training Officer Pay Notes: After the implementation of Proposition B, Fire's Incentive Pay Budget will grow by 61% from to - The budget for Tuition Reimbursement will be determined once department needs are assessed - Mentoring Pay was eliminated effective December 28, 2018 - The FY2019 Budgeted FTE Count for police is 5,155.4 compared to fire at 4,005, a difference of 1,150 FTES Field Training Officer Pay for Police is now called Field Training Sergeants and Field Training Lieutenants Effective December 29, 2018 HO USTQN PROFESSTONAL FIRE amass; BRIAN WILCOX ASSOCIATION LOCAL 341 commemons VIA EMAIL EST. 1932 DIRECTOR April 17, 2019 Hon. Sylvester Turner City of Houston PO. Box 1562 Houston, Texas 77251 Dear Mayor Turner, We are in receipt of the information provided by your administration. Contrary to your news re? lease today, your response today answered none of our pending questions necessary for negotia- tions to successfully implement Proposition B. Again, please review the attachments to this letter and provide the missing information. This letter also recon?rms, for the third time, our willingness to take to our membership your proposal to implement Proposition over three and a half years, subject to the following condi- tions: 1. Any agreement with the City of Houston, subject to the ?nal approval of the HPFFA membership, would be rati?ed through a Collective Bargaining Agreement 2. Based on provision to us by the City of complete access to City ?nancial and budget in- formation, the City will implement complete parity with HPD, including both base pay and incentives, and; 3. The City agrees that no ?re?ghter layoffs or reduction of ?re and EMS services would occur before, during or after implementation of Proposition B. We await your response. Yours Patrick M. ?Marty? Lancton cc: HPFFA Board of Directors and Trustees Houston City Council Houston Fire Chief Samuel Pe?a 1907 FREEMAN STREET, HOUSTON, TEXAS 77009 PHONE (71 3) 223-9166 FAX (713) 237-091 2 EMAIL ADDRESS: .ORG ?@954 July 1, 2019 CLASSIFICATION Base Pay Bi-weekly) Years of Service 5th Year 10th Year Over Probationary Year 16th Year 17th Year Under 8: Over Senior Police Officer Engineer Operator 5th - 9th 10th - 16th 17th Year Year year Over Sergeant Captain 7th 9th 10th - 16th 17th Year Year year Over Lieutenant Senior Captain 7th - 9th 10th - 16th 17th Year Year year Over Commander (Captain) District Chief 11th - 16th 17th Year year Over [Deputy (Fire) nk in 3-6 years Sen 1 2 years Year As ChlEf Po Fl Istant rank 3-6 years 12 years Exc nt Chief Pol Exc Assastant Chief Define to following Police Officer Fire?ghter The following are sections b-l from the Charter Amendment b.Firefighters employed in fire suppression shall receive the same incentive pay as police of?cers, of like seniority, employed as patrol officers. Annually Step 1: Step 2: Step 3: Which ranks and seniority grades would receive this incentive pay. c. Firefighters shall receive the same training pay as police officers of like seniority Yea rs of service Bi-Weekly Level One Level Two Level Three Which ranks and seniority grades would receive this incentive pay. d. Firefighters employed as arson investigators shall receive the same investigative incentive pay as police of?cer investigative personnel of like seniority and investigative experience Annually Step I Step II Step Which ranks and seniority grades would receive this incentive pay. What is the criteria for this incentive pay e. Fire?ghters who serve as Field Training Officers shall receive the same Field Training Officer training pay as police officers who serve as Field Training Officers. What is the criteria for this incentive pay What is the bi-weekly pay for this incentive f. Fire?ghters shall receive mentoring pay in the same amount and on the same basis as police officers What is the criteria for this incentive pay What is the bi-weekly pay for this incentive g. Firefighters classified as arson investigators, inspectors, communication captain, senior inSpectors, senior investigators, communication senior captain, assistant arson investigator, chief inspector or chief communication officer shall receive the same weekend premium and shift differential pay in the same amount and on the same basis as policers quali?ed to receive such pay. What is the criteria for this incentive pay What is the bi-weekly pay for this incentive h. Fire?ghters shall receive educational incentive pay in the same basis as police officers quali?ed to receive such Bi-Weekly Bachelors Master Doctrine What is the criteria for this incentive pay i. Fire?ghters shall receive college tuitiOn reimbursement in the same amount and on the same basis as police of?cers entitled to receive such reimbursement. What is the criteria for this incentive pay Which ranks and seniority grades would receive this incentive pay. j. Fire?ghters shall receive the same clothing allowance (or similar bene?t) paid to police officers, in addition to any protective clothing and equipment provided by the City. Annual Clothing Allowance What is the criteria for this incentive pay Which ranks and seniority grades would receive this incentive pay. k. Firefighters shall receive the same equipment allowance (or similar bene?t) paid to police officers. Annual I Equipment Allowance What is the criteria for this incentive pay Which ranks and seniority grades would receive this incentive pay. l. The Cityshall make the same contribution to the Houston Professional Firefighters Association Medical Trust that it does to the Texas Police Trust. What is the criteria for this benefit What is the contribution on a per member basis. *In the event that there have been any recent category changes in the current HPD contract, please include the recent changed data also for each category. We look forward to getting this information and discussing possibilities of moving forwards on some type of mutually agreeable basis. CITY OF HOUSTON Interoffice Memorandum Finance Department To: cc: Controller Chris Brown Mayor Sylvester Turner Marvalette Hunter, Chief of Staff From: Ronald C. Lewis, City Attorney Tantri Emo, Chief Business Officer/Director of Finance Date: April 17, 2019 Subject: Proposition B Implementation Cost Please find below responses to your April 4th memorandum, supplementing the information discussed during a meeting of our departments on April 9, 2019. Response 1 (for item #1): The 730 number does not relate to employee reductions. It relates to the number of employees in the Fire department who are in a similar position with regard to current eligibility for pay increases under Prop B. Response 2 (for items #2 and 3.a-b): Please see Response 1. The criteria for qualifying for parity with police for incentives and base pay for police officers is determined by the terms of the current meet and confer agreement between the City and the Houston Police Officers’ Union and, of course, Prop B. Your staff advised that you have the meet and confer agreement. The impact of Prop B was estimated in the summer of 2018 based on assumptions made by Finance. Human Resources has now done an analysis that is more specific to individual fire fighters. The timing of the certain events, such as the current meet and confer, also impacts prior assumptions. Finally, the analysis is no longer based on assumptions about the possible legal interpretations of Prop B. Response 3 (for item #4a and #5): See Response 2 above. You inquire about incentive pays referenced in paragraphs (d), (e), (f), (i) and (j) of Prop B. Paragraph (i): We do not currently have the information necessary from members of HFD who are enrolled in school to be able to determine what amount will be paid in tuition reimbursement. Paragraphs (e) and (f): 1 PRIVILEGED AND CONFIDENTIAL These incentives are affected by the timing of the current HPOU meet and confer which was approved before Prop B was incorporated into the Charter. Prop B language appears to have been based on old meet and confer provisions. Prop B is not retroactive in application. This obviates paragraphs (e) and (f) of Prop B. Paragraph (j): Only HPD officers who are required to wear business attire on a regular basis (3 out of 5 days a week) get a clothing allowance. All members of HFD are required to wear their uniforms when on duty. Paragraph (d). Arson investigators are not classified as firefighters according to Prop B. Response 4 (for item #3c and #4b): Prop B’s implementation requires the resolution of legal, practical and technical issues. The City legal department, along with outside counsel, have applied relevant and appropriate legal guidance to inform the City’s interpretation of Prop B and we are comfortable with our conclusions. In pending litigation, the City’s pleadings state: Local laws must be clear, definite, and free from ambiguity, so that their meaning may be ascertained. They must be sufficiently definite to give a person of ordinary intelligence fair notice that contemplated conduct is forbidden. An ordinance violates due process and is fatally vague when persons regulated by it are exposed to some risk or detriment without fair warning of the nature of the proscribed conduct, or if it invites arbitrary and discriminatory enforcement. As one example of poor drafting and construction, Prop B would require the City to pay members of the Houston Fire Department for work that they do not do. Members do not engage in patrol activities as do police officers. Police officers are incentivized to work in the patrol division and accept the attendant risk. Prop B seems to suggest that it is possible to pay the same incentive pay to members, even though they do not work in the patrol division or take the same risks as do police officers and seeks to direct patrol incentive pay to some members. I understand that as early as last summer, you found this verbiage in Prop B to be nonsensical. Prop B is also incomplete. For instance, Prop B fails to specify how implementation should be achieved. For example, Prop B does not address issues relating to payroll system configuration, system testing, validation of pay amounts. Moreover, and critically, Prop B did not specify a funding source. 2 PRIVILEGED AND CONFIDENTIAL