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RESOLUTION 92-20553 RESOLUTION NO. 92-20553 A RESOLUTION APPROVING A SETTLEMENT AGREEMENT BETWEEN THE CITY OF MIAMI BEACH AND THE FRATERNAL ORDER OF POLICE, LODGE NO. 8 AND THE INTERNATIONAL ASSOCIATION OF FIREFIGHTERS, LOCAL 1510, EFFECTIVE JULY 22, 1992. WHEREAS, the City Manager has submitted for consideration by the City Commission of the City of Miami Beach, a Settlement Agreement by and between the City of Miami Beach and the Fraternal Order of Police, Lodge No. 8, and by and between the City of Miami Beach and the International Association of Firefighters, Local 1510, the bargaining agents certified by the Public Employees Relations Commission for employees covered by said agreements; and WHEREAS, the City Manager has recommended that the City Commission approve said Settlement Agreement; and WHEREAS, the City Commission is familiar with the terms of the Settlement Agreement and finds and determines that the entry into and the execution thereof for and in the name of the City of Miami Beach is in the best interest of the City of Miami Beach and its residents; and NOW, THEREFORE, BE IT DULY RESOLVED BY THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the aforesaid Settlement Agreement be and is hereby approved in accordance with and subject to the provisions of Chapter 447, Part II, Florida Statute, in the name of and on behalf of the City of Miami Beach, and that the financial officers of the City be and they are hereby directed to make the disbursements called for by said Agreement from funds of the City available for such purposes and upon ratification by all parties. PASSED and ADOPTED this 22nd day of July , 1992. MAYO ATTEST: ttive,;k City Clerk v - FORM APPROVED LEGAL DEPT. By J L7 Date CITY OF FAI BEACH CITY HALL 1 700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139 OFFICE OF THE CITY MANAGER TELEPHONE: (305) 673-7010 FAX: (305) 673-7782 COMM ISSION MEMORANDUM NO. qS9-9Z TO: Mayor Seymour Gelber and DATE: July 22 , 1992 Members of the City Commission FROM: Roger M. Ca City Manager t , SUBJECT: RESOLUTION TO RATIFY A SETTLEMENT AGREEMENT BETWEEN THE CITY OF MIAMI BEACH, FRATERNAL ORDER OF POLICE, LODGE #8, AND THE INTERNATIONAL ASSOCIATION OF FIREFIGHTERS, LOCAL 1510, AND THE EMERGENCY PASSAGE AND ADOPTION OF THE ORDINANCES GRANTING THE WAGE INCREASES AS PROVIDED IN THE SETTLEMENT AGREEMENT RECOMMENDATION: The Administration recommends that the City Commission adopt the attached resolution to ratify the Settlement Agreement between the City of Miami Beach, the Fraternal Order of Police, (FOP) Lodge #8 , and the International Association of Firefighters, (IAFF) Local 1510. Further, the Administration recommends emergency adoption of the ordinances to grant the wage increases to the FOP and IAFF membership, as provided in the Settlement Agreement. BACKGROUND: The Administration has been negotiating for approximately 18 months with the FOP and the IAFF regarding a wage increase re-opener that was 'due in October 1990, under the current labor agreements for these two bargaining units. At a culmination meeting held on May 26, 1996, the decision by the FOP and IAFF Presidents was to take the Settlement Agreement proposed by the City to their membership for a vote. The membership of the FOP and the IAFF rejected the proposed Settlement Agreement. The attached is a revised Settlement Agreement reached after continued, intense negotiations. ANALYSIS: The revised Settlement Agreement provides for active full-time bargaining unit employees, a 1. 5% lump sum payment, calculated on base wages earned for the period of 10/01/90 to 09/30/91. For the lump sum payment, there will be no fringe benefit add-ons. Further, active, full-time bargaining unit employees will receive a retroactive 1% across-the-board increase effective as of 10/1/90, which shall be considered to be an increase to these units' employees for purposes of base benefit calculations. continued. . . 1 AGENDA R_cl ITEM DATE 7-2:2-9-z--- COMMISSION MEMORANDUM PAGE 2 JULY 22 , 1992 FOP/IAFF SETTLEMENT AGREEMENT The revised Settlement Agreement also provides bargaining units ' retirees, who retired between 10/1/90 and the ratification of the Agreement, a one-time, lump sum, non-pensionable, payment of 1. 5% on annual salary only, excluding overtime, etc. for fiscal year 1990/91 . Also, effective 10/1/90, retired officers will be provided with a retroactive 1% across-the-board increase in their base pay for all purposes. These payments shall be pro-rated for the days actually worked during fiscal years 1990/91 and 1991/92 . Pursuant to the direction of the City Commission, upon ratification of the attached Settlement Agreement, the FOP and the IAFF will commence negotiations for fiscal years 1992/93 , 1993/94 , and 1994/95. As reported to you in the Letter to Commission No. 140-92 , dated May 28 , 1992 , the cost and the method of funding for this Settlement Agreement would be as follows: The cost estimate for the proposed wage settlement with the FOP and the IAFF bargaining units is $700, 000. This amount includes the $200, 000 cost for the current year, as well as the $500, 000 cost for the prior year. The direction of the City Commission was to offset the costs with savings during the current year. Based on the direction of the City Commission, the Fire Department will pay its share, $280, 000. 00, from existing salary savings due to leaving positions vacant. The Police Department's share, $420, 000 . 00, has been achieved through reductions in overtime utilization recently reviewed by the Finance Committee, and keeping vacant certain management, sworn, and civilian positions, as well as restrictions on discretionary operating expenditures. These actions will result in savings this year of approximately $400, 000. The only difference between the previously proposed Settlement Agreement and the revised Settlement Agreement that was accepted by the FOP and the IAFF is that the 1% increase to the base rate is pensionable. Because of the way that the pension is funded, there is no pension cost this year for the 1%. The Pension Board' s actuary has revised the one-time assumptions for the future, based on approximately five years experience, which results in a wash for future years. CONCLUSION: The approval of this Settlement Agreement is recommended. It is the opinion of the City Administration that a negotiated settlement is preferable over an imposed settlement, which would be the outcome of the Special Master process. RMC:DRM: lg Attachments •:COMM-MEM06/90 FOP-IAFF.AGR r • SETTLEMENT AGREEMENT BETWEEN CITY OF MIAMI BEACH AND FRATERNAL ORDER OF POLICE AND INTERNATIONAL ASSOCIATION OF FIREFIGHTERS Effective the first full pay period following ratification of this Settlement Agreement between the City of Miami Beach and the Fraternal Order of Police, Lodge No. 8 ("FOP') and the City of Miami Beach and the International Association of Firefighters, Local 1510 ("IAFF'), active, full-time bargaining unit employees shall receive a one-time, non-pensionable, one and one-half percent (1.5%) lump sum payment. For purposes of calculation, the one and one-half percent(1.5%) lump sum payment shall be calculated on base wages earned for the period 10/01/90 to 09/30/91, exclusive of extra pay items not dependent on base salary, such as uniform allowances, shift differential and overtime. Said one-time, lump sum payment shall only be subject to federal taxes, and shall not become part of these bargaining unit employees' base pay, nor shall it be included for the purposes of calculating pensions, overtime and/or any other benefit. During the first full pay period following ratification of this Settlement Agreement, the active, full-time bargaining unit employees shall receive a retroactive one percent (1%) across-the-board increase effective 10/01/90. This increase shall be considered to be an increase to unit employees' base pay for all purposes. The above-mentioned one and one-half percent (1.5%) payment, and the one percent (1%) across-the-board increase shall constitute full payment for all purposes for the fiscal year 1990/91. Further, the parties agree to extend the current contract, including this Settlement Agreement, for the fiscal year 1991/92. Such extension concludes bargaining for fiscal years 1990/91 and 1991/92. continued... FOP/IAFF SETTLEMENT AGREEMENT PAGE 2 Those bargaining unit members who retired between October 1, 1990 and the ratification of this Agreement, shall receive the following: For fiscal year 1990/91, the retired officers shall receive a one-time, lump sum, non-pensionable, payment of one and one-half percent (1.5%) on annual salary only, excluding overtime, etc. Effective October 1, 1990, the retired officers shall receive a retroactive one percent (1%) across-the-board increase to their base pay for all purposes. These payments shall be prorated for the days actually worked during fiscal years 1990/91 and 1991/92. Upon ratification of this Settlement Agreement between the City of Miami Beach, the FOP, and the IAFF, the parties hereto will commence negotiations for their respective labor agreements for fiscal years 1992/93, 1993/94, and 1994/95. AGREED AND ENTERED into this 28th day of July , 1992. FRATERNAL ORDER OF POLICE INTERNATIONAL ASSOCIATION OF LODGE NO. 8 FIREFIGHTERS, LOCAL 1510 ('1;711: By 4. tc -� 2 B : L nda Veski, President 'tom i Wray, President Approved by vote of the City Commission, July/22 , 1.92 CITY OF MIAMI BEACH By: ttit �,Y �.�C--" By: Roger M. Carlton, City Manager Sey our Ge -r ayor DRM:ah FORM APPROVED a:FOP&JAFFCOMRI/9l Attest: FOP-LlFF.AG3 LE LEGAL DEPT 6 Y City Clerk zei6t Date vttZ V LL\LiL RESOLUTIO14 NO. 92-20553 Approving a settlement agreement between the City of Miami Beach and the Fraternal Order of Police, Lodge No. 8 and the International Association of Firefighters, 6wm '`Local 1510, effective July 22, 1992.