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2014-28471 Reso RESOLUTION NO. 2014-28471 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA RATIFYING A MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF MIAMI BEACH AND THE INTERNATIONAL ASSOCIATION OF FIRE FIGHTERS, (IAFF), LOCAL 1510, PERTAINING TO RETIREMENT BENEFITS, IN FURTHERANCE OF THE 2012-2015 COLLECTIVE BARGAINING AGREEMENT. WHEREAS, the Administration is hereby submitting to the Mayor and City Commission the attached Memorandum of Understanding pertaining to pension benefits recently negotiated between the City and the International Association of Fire Fighters, (IAFF), Local 1510, for the employees covered by the IAFF collective bargaining unit; and WHEREAS, Exhibit A to the resolution is a copy of the Memorandum of Understanding executed between the City and the IAFF; and WHEREAS, the IAFF bargaining unit ratified the Memorandum of Understanding with a majority of the bargaining unit members who voted doing so in favor of the adoption of said memorandum; and NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, hereby approving and authorizing the Administration to execute the Memorandum of Understanding between the City and the IAFF, pertaining to retirement benefits, in furtherance of the 2012-2015 collective bargaining agreement between the City and IAFF. PASSED AND ADOPTED this 15A day of J4hugw , 2014. ATTEST: RAFA L GRANADO * IN 0 P ORATED - I L CITY CLERK . O 26 APPROVED AS M )Rm& L,kNIGUArCrE & FOR EXECUTION City Aflorneyr dote COMMISSION ITEM SUMMARY Condensed Title: E LResolution of the Mayor and City Commission of the City of Miami Beach, Florida, Ratifying a Memorandum of Understanding Between the City of Miami Beach and the International Association of Fire Fighters (IAFF), Local 1510. Key Intended Outcome Supported: Attract and maintain a workforce of excellence. Item Summa /Recommendation: On September 30, 2012, the three-year collective bargaining agreement between the City of Miami Beach and the IAFF (covering the period of October 1, 2009 through September 30, 2012) expired. Negotiations for a successor agreement began and after ten formal negotiation sessions and several informal discussions, a three-year labor agreement covering the period October 1, 2012 through September 30, 2015, was ratified by the City Commission on July 19, 2013. On August 7, 2013, the IAFF notified the City that 85 percent of the voting membership voted in support of the contract. On September 11, bargaining unit members filed an unfair labor practice (ULP) charge with the Public Employees Relations Commission (PERC) in which the charging parties alleged the City had unilaterally changed negotiated and agreed upon terms and conditions of employment to their detriment. The charge was dismissed and later amended and refiled. Subsequently, on behalf of the same party, the IAFF submitted a formal grievance alleging the City had violated the collective bargaining agreement as it had negotiated a provision for members hired as a result of the consent decree and the City had not amended the ordinance accordingly. This benefit included allowing members hired pursuant to the consent decree to maintain their Rule of 70 retirement without a minimum age requirement. After a number of discussions and a collective bargaining session between the City and IAFF, including the parties' respective legal representatives, the parties reached a Memorandum of Understanding (MOU) providing that any fire fighter member hired pursuant to the consent decree could retire when the sum of the member's age and creditable service equals at least 70, with no minimum age requirement. This MOU changes terms and conditions of employment, therefore, it requires ratification by both the IAFF membership and the City Commission. On December 6, 2013, the IAFF reported that 115 members had voted in support of the MOU and 23 against. The administration recommends that the City Commission adopt the resolution to ratify the MOU between the City and the IAFF bargaining unit, amending the Rule of 70 retirement benefit for those Fire and Police Pension Plan members covered by the IAFF who were hired as a result of the consent decree, consistent with those members covered by the FOP who were also hired as a result of the consent decree. Advisory Board Recommendation: N/A Financial Information: Source of Amount Account Funds: 1 NA NA 2 NA NA 3 NA NA OBPI Total NA Financial Impact Summary: The actuarial impact is negligible since this change affects two fire fighter members only. City Clerk's Office Legislative Tracking: [-Sylvia Cres o-Tabak, Human Resources Director Sign-Offs. Department Director Assistant City Manager City Manager Sylvia Crespo-Tabak Kathie G. roo s Jimmy L. M rales TA ENDA\2014\January\IAFF MOU\IAFF 2012-2015 MOU Summary doc.docx AGENDA ITEM .,�,. /\/\IAMIBEACH DATE _ NAIAMI BEACH City of Miami Beach, 1700 Convention Center Drive,Miami Beach, Florida 33139,www.miamibeachfl.gov COMMISSION MEMORANDUM TO: Mayor Philip Levine and Members o the City Co mission FROM: Jimmy L. Morales, City Manager DATE: January 15, 2014 SUBJECT: A RESOLUTION OF THE MAYOR ND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA RATIFYING A MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF MIAMI BEACH AND THE INTERNATIONAL ASSOCIATION OF FIRE FIGHTERS, (IAFF), LOCAL 1510, PERTAINING TO RETIREMENT BENEFITS, IN FURTHERANCE OF THE 2012-2015 COLLECTIVE BARGAINING AGREEMENT. ADMINISTRATION RECOMMENDATION Adopt the resolution. BACKGROUND On September 30, 2012, the three-year collective bargaining agreement between the City of Miami Beach and the IAFF (covering the period of October 1, 2009 through September 30, 2012) expired. Negotiations for a successor agreement commenced prior to the expiration of the three-year collective bargaining agreement that covered the period of October 1, 2009 through September 30,2012. On July 19, 2013, the City and IAFF ratified the three-year labor agreement covering the time period from October 1, 2012 through September 30, 2015. On August 7, 2013, the IAFF notified the City that 85 percent of the voting membership voted in support of the contract. ANALYSIS On September 11, 2013, bargaining unit members filed an unfair labor practice (ULP) charge with the Public Employees Relations Commission (PERC) in which the charging parties alleged the City had, to their detriment, unilaterally changed negotiated and agreed upon terms and conditions of employment. The charge was dismissed and later amended and refiled, this time with only one filing party. Subsequently, on behalf of the same party, the IAFF submitted a formal grievance alleging the City had violated the collective bargaining agreement as it had negotiated a provision for members hired as a result of the consent decree and the City had not amended the ordinance accordingly. This benefit included allowing members hired pursuant to a consent decree to maintain their Rule of 70 retirement age eligibility with no minimum age requirement. After a number of discussions and a collective bargaining session between the City and IAFF, including the party's respective legal representatives, the parties reached a Memorandum of Understanding (MOU) providing that any fire fighter member hired pursuant to the consent decree could retire when the sum of the member's age and creditable service equals at least 70, with no minimum age requirement. This MOU changes terms and conditions of employment, therefore, it requires ratification by both the IAFF membership and the City Commission. On December 6, 2013, the IAFF reported that 115 members had voted in support of the MOU and 23 against. The memorandum of understanding is provided as Attachment 1. The Fire and Police Pension Plan actuary has advised that implementing this change for those members covered by the IAFF who were hired as a result of the consent decree will not result in any significant impacts to the Plan, as there are City Commission Memorandum January 15, 2014 IAFF MOU Page 2 of 2 only two members affected. CONCLUSION The administration recommends that the City Commission adopt the resolution to ratify the MOU between the City and the IAFF bargaining unit, amending Rule of 70 retirement benefits for those Fire and Police Pension Plan members covered by the IAFF who were hired as a result of the consent decree, to be consistent with those members covered by the FOP who were also hired pursuant to the consent decree. Attachm n JLM/K /SC-T TAAGENDA\2014\January\IAFF MOU\IAFF 2012-2015 MOU Commission Memo.doc r ATTACHMENT 'I MEMORANDUM OF UNDERSTANDING This Memorandum of Understanding ("MOU") is entered into, by, and between the City of Miami Beach ("City") and the International Association of Fire Fighters, Local 1510 ("Union"). The Parties agree that Section 66 of Part 1, Subpart B, Article IX, Related Special Acts of the Miami Beach City Code, is amended in pertinent part to read: Sec. 66. Service and disability benefits generally. (a) The Board shall, upon application retire members meeting any one of the following requirements: (4) The sum of the member's age and Creditable Service equals at least 70 and the member retires on or after October 1, 1998; provided, effective September 30, 2013, a member hired before July 14, 2010 must attain age 47 to be eligible for retirement under this paragraph (4); and a member hired on or after July 14, 2010 must attain age 48 to be eligible for retirement under this paragraph (4); and provided further, any member hired prior to July 14, 2010 who completes a buyback of prior Creditable Service prior to September 30, 2013 and reaches the maximum pension benefit of 85% of average monthly Salary prior to attaining age 47, the employee contribution shall cease on the date such employee reaches the 85% maximum pension benefit, and his/her final average monthly Salary will be frozen on the same date. Notwithstanding the preceding sentence, any police officer or firefighter member hired pursuant to a consent decree may retire when the sum of the member's age and Creditable Service equals at least 70. [INTENTIONALLY LEFT BLANK] IN WITNESS WHEREOF, subject to due ratification by vote of the bargaining unit members and by vote of the City Commission, and intending to be legally bound, the Parties hereby execute this MOU. E E CITY OF MIAMI BEAC INTERNATIONAL ASSOCIATION OF FIRE FIGHT VS OCA 1 By JI MORA ES DO S GARC A City M nager President —11 /zo /1 3 // DATE DATE f I l I r EXHIBIT A MEMORANDUM OF UNDERSTANDING This Memorandum of Understanding ("MOU") is entered into, by, and between the City of Miami Beach ("City") and the International Association of Fire Fighters, Local 1510 ("Union"). The Parties agree that Section 66 of Part 1, Subpart B,Article IX, Related Special Acts of the Miami Beach City Code, is amended in pertinent part to read: Sec. 66. Service and disability benefits generally. (a) The Board shall, upon application retire members meeting any one of the following requirements: (4) The sum of the member's age and Creditable Service equals at least 70 and the member retires on or after October 1, 1998; provided, effective September 30, 2013, a member hired before July 14, 2010 must attain age 47 to be eligible for retirement under this paragraph(4); and a member hired on or after July 14, 2010 must attain age 48 to be eligible for retirement under this paragraph (4); and provided further, any member hired prior to July 14, 2010 who completes a buyback of prior Creditable Service prior to September 30, 2013 and reaches the maximum pension benefit of 85% of average monthly Salary prior to attaining age 47, the employee contribution shall cease on the date such employee reaches the 85% maximum pension benefit, and his/her final average monthly Salary will be frozen on the same date. Notwithstanding the preceding sentence, any police officer or firefighter member hired pursuant to a consent decree may retire when the sum of the member's age and Creditable Service equals at least 70. [INTENTIONALLY LEFT BLANK] i i IN WITNESS WHEREOF, subject to due ratification by vote of the bargaining unit members and by vote of the City Commission, and intending to be legally bound, the Patties hereby execute this MOU. E i CITY OF MIAMI BEAC INTERNATIONAL ASSOCIATION OF FIRE FIGHT S OCA 1 By JI MORA ES DO S GARCIA City M nager President t - 11/9-0 /13 f/ DATE DATE t i f I f