2010-3694 OrdI
~ ORDINANCE NO. i 2010-3694
'~
AN ORDINANCE OF THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA,
IMPLEMENTING PROVISIONS OF THE 2009-2012
COLLECTIVE BARGAINING AGREEMENT BETWEEN THE
CITY AND FIRE FIGHTERS OF MIAMI BEACH, IAFF
LOCAL 1510, AND MIAMI BEACH FRATERNAL ORDER OF
POLICE, ,WILLIAM NICHOLS LODGE NO. 8; CREATING A
NEW ARTICLE IV OF CHAPTER 78, MIAMI BEACH CITY
CODE `; ENTITLED. "HEALTH BENEFITS FOR
FIREFIGHTERS AND POLICE OFFICERS"; PROVIDING
FOR SEVERABILITY; REPEALING ALL ORDINANCES IN
CONFLICT THEREWITH; AND PROVIDING FOR AN
EFFECTIVE DATE.
Section 1. Anew Article IV of Chapter 78, Miami ,Beach City Code, entitled "Health
benefits for Firefighters a}nd Police Officers" is created to read:
Article IV. Health Benefits for Firefighters and Police Officers
i
Sec. 78-181. Health Trusts.
(a) Pursuant to the (collective bargaining agreements between the City and Fire
Fighters of Miami Beach,i IAFF Locat 1510 ("IAFF"), and Miami Beach Fraternal Order of
Police, William Nichols Lodge No. 8 ("FOP"), health benefits for firefighters and police
officers, and retired firefighters and police officers, are provided through health trusts
established by the IAFF and FOP, except as provided in susection (d) below The health
benefits provided are established by the boards of trustees of the health trusts The City
makes monthly contributions to the health trusts on behalf of active and retired firefighters
and police officers, in the. amounts specified in its collective bar aining agreements with
the_ IAFF and FOP; and the City's contributions are subject to annual adjustment in
.accordance with the collective bargaining agreements The City has no obligation for the
health benefits of firefighters and police officers, and retired firefighters and police
officers, other than making the monthly contributions specified in its collective bargaining
i
agreements with the IAFF'and FOP.
~o~ ror an active tiretighters and police officers on the City payroll as of July 14, 2010
(including DROP participants), all retired firefighters and police officers on that date, and
all eligible dependents under the eligibility rules in effect on that date, the City
1
contributions to the- health trusts on behalf of such employees following their retirement,
i
and on behalf of such retirees and dependents, shall be equal to the City's health trust
contribution formula for. active employees as set forth in the 2009-2012 IAFF and FOP
collective bargaininQ~g'reements. Furthermore, the City contributions on behalf of such
employees following their retirement, and on behalf of such retirees and dependents,
shall be no less than the contributions for active employees and their eligible dependents
as set forth in the 2009-2012 IAFF and FOP collective bargaining agreements. The
provisions of this subsection (b) shall be reflected in individual contracts to be signed by
the City and each eligible person, and the City contributions set forth in this subsection (b)
shall be a vested benefit of throughout the retirement of each eligible person who
executes an individual contract.
(c) Firefighters and police officers hired after July 14, 2010 who elect to be covered
by the IAFF or FOP health trust to the extent then choose to have medical benefits
provided to them and their dependents during retirement shall receive a health insurance
stipend in lieu of any City contribution to the health trusts on their behalf, as provided in
this subsection (c). The (stipend shall be a monthly payment by the City eoual to twenty-
five dollars ($25.00) per month for each year of creditable service under the City pension
system for police officers and firefighters. The monthly stipend shall be subject to an
annual increase each velar following an employee's retirement based on the Miami-Ft
Lauderdale all urban consumer CPI as of September 30th of each fiscal year.
I
(d) Firefighters and police officers who have worked at least ninety (90) days from
,.
date of appointment will not be covered by City-provided medical and dental benefits and
will instead be covered i by the health trusts Non-bargaining unit State certified
firefighters and police officers shall have the option of coverage under City employees'
benefit plan or the health trusts, but not both, provided they meet the eligibility
re uirements set forth in the plan document.
Section 2. Conflicts and Severability.
(a) All Ordinances; and parts of ordinances, in conflict herewith shall be and
the same, are hereby repealed.
2
(b) In the e~
this Ordinance shall bE
no manner affect the o
of this Ordinance,, whic
so adjudged invalid or ~
.nt any article, section, paragraph, sentence, clause, or phrase of
adjudicated invalid or unconstitutional, such adjudication shall in
per articles, sections, paragraphs, sentences, clauses or phrases
shall be and remain in full force and effect as fully as if the item
constitutional was not originally a part hereof.
Section 3. Effective ~ Date. This Ordinance shall take effect ten days following
adoption, except as otherwise specified herein.
PASSED and ADOPTED by the City Commission of the City of Miami Beach
this 15t~ay of September , 2010.
May
alth Benefits Ordinance.doc
APFRt~~rt~
FORM & l,A1~#t~~,lA~~
& FOR ~tlTION
~~/~
~ ~,~
COMMISSION ITEM SUMMARY
~onaensea ~ itie: i
An Ordinance Of The Mayor And City Commission Of The City Of Miami Beach, Florida, Implementing
Provisions Of The 2009-2012 Collective Bargaining Agreement Between The City And The IAFF And
FOP, Creating A New Article IV Of Chapter 78, Of The City Code Entitled "Health Benefits For Firefighters
And Police Officers"; Providing For Severability; Repealing All Ordinances In Conflict Therewith; And
Providing For An Effective Date.
Key Intended Outcome Supported:
Control costs of payroll including salary and fringes/ minimize taxes/ ensure expenditure trends are
sustainable over the long term.
Supporting Data (Surveys, Environmental Scan, etc.): N/A
Issue:
Should the City Commission adopt the ordinance to amend Chapter 78, Article II, of the Miami Beach City
Code in accordance with the negotiated contract provisions?
Item Summary/Recommendation:
SECOND READING PUBLIC HEARING
As part of the City's request to all employees for employee givebacks, the FOP and IAFF have made a
concession toward the retiree health benefit for future employees. Employees hired after the ratification
of the Agreements will receive a retiree healthcare stipend instead of the current formula based
contribution. The stipend shall be a monthly payment equal to twenty-five dollars ($25) per month for
each year of service tied to a Consumer Price Index (CPI). This Ordinance was approved on first reading
on July 14, 2010. The Administration recommends approving the ordinance on second reading.
Adviso Board Recommendation:
N/A
Financial Information:
Source of ~ Amount ~ Account
Funds: ~ ~
-2
3
OBPI -Total'
Financial Impact Summary:
Gallagher Benefits Service, Inc. (Gallagher), the City's consultant for health care issues
has indicated
,
that there will be no immediate savings by revising the City's contribution for retiree health for only future
employees. However, there will be long-term savings with a fixed rate instead of a fluctuating contribution
methodology. Gallagher has estimated that the City's long-term expenses (both the annual required
contribution and the unfunded liabili could be reduced b as much as 70%.
Cit .Clerk's Office Le islative Trackin
Ramiro Inguanzo, Human Resources Director
Sign-Offs:
Department Director ~
,
: Assistant City Manager - City Manager
amiro In uanzo
~
i a Fernandez
Jor a onzalez
T•\D(_CAIIIA\7A~A~c....a.....,.~.., C~1'l_~..! ~_.d~w rr___~
•~~~~~~~~~ ~vwvN«nw~~av~Cyu,aivr~rranarvrrcetiree neaim tsenentsSurr ary.doc
~~E~~A ~~~nn S ~
~:~
~~~ _ _
m MIAMI BEACH
City of Miami Beath, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
COMMISSION MEMORANDUM
To: Mayor Matti H ~ rrera Bower and Members of the City Commission
FROM: Jorge M. Gonzalez, City Manager
DATE. September 15, 2010 ECO READING PUBLIC HEARING
SUBJECT: AN ORDINANCE ~OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, IMPLEMENTING PROVISIONS OF THE 2009-2012
COLLECTIVE ~ BARGAINING AGREEMENT BETWEEN THE CITY AND FIRE
FIGHTERS OF MIAMI BEACH, IAFF LOCAL 1510, AND MIAMI BEACH
FRATERNAL ,ORDER OF POLICE,. WILLIAM NICHOLS LODGE NO. 8;
CREATING A NEW ARTICLE IV OF CHAPTER 78, MIAMI BEACH CITY CODE
ENTITLED "HEALTH BENEFITS FOR FIREFIGHTERS AND POLICE
OFFICERS"; ~ PROVIDING FOR SEVERABILITY; .REPEALING ALL
ORDINANCESi IN CONFLICT THEREWITH; AND PROVIDING FOR AN
EFFECTIVE DATE.
TION RECOMMENDA'
This Ordinance was approved on first reading on July 14, 2010. The Administration
recommends that the City Commission approve.the ordinance on second reading.
BACKGROUND '
During the July 2009 Finance and Citywide Projects Committee (Committee) budget
preparation meetings for the FY2009/2010 Budget; the Committee requested that all City of
Miami Beach employees make certain financial concessions to help address the challenges
being faced during the FY2009/2010 budget cycle and beyond. The Committee requested
the Administration to budget for specific employee givebacks for FY2009/2010, which would
in turn effectuate a cost savings of approximately $4.3 million (approximately $3.5 million
savings attributed to the General Fund and $800,000 from various enterprise funds).
Furthermore, in 2010 the City Commission directed the Administration to secure and budget
for an additional $11 million in savings attributed to employee givebacks for FY2010/2011.
Therefore, the total amount of employee givebacks for both the FY2009/2010 and
FY2010/2011 is $15.3 million.
Th
e International Association of Fire Fighters, Local 1510 (IAFF) three (3) year Collective
Bargaining Agreement (Agreement) (covering the period of October 1, 2006 through
September 30, 2009) expired on September 30, 2009. In anticipation of the Agreement
expiring, negotiators for the City and IAFF began negotiating for a successor three (3) year
Agreement in August 2009. ;After eleven (11) formal negotiation sessions and several
discussions away from the negotiation table, the City and IAFF successfully concluded
negotiations and reached a tentative three (3) year labor agreement covering the time period
of October 1, 2009 through 'September 30, 2012. The IAFF membership ratified the
Commission Memorandum I
September 15, 2010
Retiree Health Insurance Stipend
Page 2 of 2
Agreement with 70.8 percent of the members voting in favor of the Agreement, (the certified
results were submitted Ito the City on July 13, 2010). Subsequently, the City Commission
adopted a resolution to ratify the Agreement at the July 14, 2010 City Commission meeting.
The Fraternal Order of Police, William Nichols Lodge No. 8 (FOP) three (3) year Collective
Bargaining Agreement (Agreement) for FOP (covering the period of October 1, 2006 through
September 30, 2009) also expired on September 30, 2009. In anticipation of the Agreement
expiring, negotiators for~the City and FOP began negotiating for a successor three (3) year
Agreement in August 2009. After fifteen (15) formal negotiation sessions and several
discussions away from Ithe negotiation table, the City and FOP successfully concluded
negotiations and reached a tentative three (3) year labor agreement covering the time period
of October 1, 2009 through September 30,2012. The City Commission adopted a resolution
to ratify the Agreement at the July 14, 2010 City Commission meeting pending the outcome
of the results of the ratification vote of the FOP membership. Subsequently, on August 6,
2010, the FOP membership',ratified the Agreement with 77.6 percent of the members voting
in favor of the Agreement.
ANALYSIS
As part of the City's request to all employees for employee givebacks, the FOP and IAFF
have made a concession' toward the retiree health. benefit for future employees. Employees
hired after the ratificationlof the Agreements will receive a retiree healthcare stipend instead
of the current formula based contribution. The stipend shall be a monthly payment equal to
twenty-five dollars ($25) per month for each year of service tied to a Consumer Price Index
(CPI). It should be noted that the City has a similar provision in place for general employees
(those in the AFSCME, CWA, GSA, "Others" and Unclassified salary groups) hired after
March 2006. ~
FINANCIAL IMPACT
Gallagher Benefits Service, Inc. (Gallagher), the City's consultant for health care issues, has
indicated that there will be no immediate savings by revising the City's contribution for retiree
health for only future employees. However, there will belong-term savings with a fixed rate
instead of a fluctuating contribution methodology. Gallagher has estimated that the City's
long-term expenses (both,the annual required contribution and the unfunded liability) could
be reduced by as much as 70%.
CONCLUSION ~
The IAFF and FOP Unions have agreed to the retiree health stipend changes discussed
herein for future employees. ,The Administration recommends that the City Commission
adopt the Ordinance on second reading.
JMG/RI/kt
T:WGENDA\2010\September 1
j
lar\IAFFand FOP Retiree Health Benefits Memo.doc