Item B: Eugene-Springfield Fire Service Merger Update

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In September, city managers from both cities, met with the fire unions to discuss merging labor contracts and initiating the process for labor discussions. This will be the main determining factor in deciding next steps in the process. Since that time, a joint citywide team of finance staff have begun a detailed costing of the two contracts to help inform the work with labor. Attachment A provides more detail on these and other accomplishments. Challenges Although significant progress has been made, there are areas that remain challenging as the two departments work towards a merged organization. Some of these challenges include:  Managers filling shared positions are finding it challenging to keep up with multiple responsibilities, e.g., managing the Springfield Fire & Life Safety Department, managing the Eugene Fire & EMS Department and managing the merger integration. These are essentially three jobs. These challenges will decrease as more areas of the two organizations are integrated into one way of operating. The tough budgetary environment in both cities has also complicated the process and taxed a reduced staff who must work through two separate budgeting processes.  Fulfilling multiple roles has led to less personal contact between senior staff, rank and file department employees, and administrative support staff.  Change, and the perception of change, has proven difficult for some members in both organizations. Decision Points in the Merger Process The incremental approach to the merger has permitted staff, and both cities, time to evaluate the feasibility of the continued efforts. So far in the process, a number of efficiencies have been realized, with significant cost savings to both organizations during a time of reduced financial resources. At the same time, a clear decision and long-term direction for both organizations is needed soon. To that end, it is envisioned that any decision process to fully merge, or separate, will include these following steps: Step 1: Evaluate the feasibility of a merged IAFF contract. If feasible, continue to Step 2. If not feasible, stop and develop strategy to separate. Step 2: Evaluate likely comparables for IAFF merged contract. If feasible, continue to Step 3. If not feasible, stop and develop strategy to separate. Step 3: Obtain a merged contract for represented general service employees currently represented by AFSCME (Eugene) and SEIU (Springfield). Complete Step 3 and continue to Step 4. State statute provides for a process to resolve this step if the policy decision is made to move forward. Step 4: Cities evaluate governance models and select preferred model. If cities agree, merge fire service organization under new governance model. If cities cannot agree, stop and develop strategy to separate. S:\CMO\2011 Council Agendas\M111026\S111026B.doc