98-22913 RESORESOLUTION NO. 98-22913
A RESOLUTION OF THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH TO RATIFY THE THREE
YEAR LABOR AGREEMENT BETWEEN THE CITY OF
MIAMI BEACH AND THE INTERNATIONAL ASSOCIATION
OF FIREFIGHTERS, LOCAL 1510 (IAFF), FOR THE PERIOD
FROM OCTOBER 1,1997 THROUGH SEPTEMBER 30, 2000,
AND AUTHORIZE THE MAYOR AND CITY CLERK TO
EXECUTE THE AGREEMENT.
WHEREAS, the City Manager has submitted to the Mayor and City Commission the Labor
Agreement recently negotiated between the City of Miami Beach, Florida and the International
Association of Firefighters, Local 1510, the bargaining agent certified by the Public Employees
Relations Commission (PERC) for the employees covered by said agreement; and
WHEREAS, the previous Labor Agreement was for a three year period from
October 1, 1994 through September 30, 1997 and has expired; and
WHEREAS, the International Association of Firefighters bargaining unit ratified the
attached Agreement and the City Manager recommends that the City Commission ratify and
authorize the execution of the Agreement between the City and the International Association of
Firefighters Union; and
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND THE CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the attached Labor
Agreement between the City of Miami Beach and the International Association of Firefighters,
Local 1510, for the period from October 1, 1997 through September 30, 2000, is hereby ratified and
that the Mayor and City Clerk are hereby authorized to execute the Agreement.
ADOPTED this 23rd day of September , 1998.
ATTEST:
City Clerk
Mayor
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
Dir4114t
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3ITY OF MIAMI BEACH
ITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
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COMMISSION MEMORANDUM NO. eo -ci
TO: Mayor Neisen O. Kasdin and
Members of the City C i mmission
FROM: Sergio Rodriguez /
City Manager
DATE: September 23, 1998
SUBJECT: A RESOLUTItJN OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH TO RATIFY THE THREE-YEAR LABOR
AGREEMENT BETWEEN THE CITY OF MIAMI BEACH AND THE
INTERNATIONAL ASSOCIATION OF FIREFIGHTERS, LOCAL 1510
(IAFF), FOR THE PERIOD FROM OCTOBER 1, 1997 THROUGH
SEPTEMBER 30, 2000, AND AUTHORIZE THE MAYOR AND CITY
CLERK TO EXECUTE THE AGREEMENT.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
BACKGROUND
On September 1, 1998, after 22 sessions, negotiators for the City and the IAFF successfully
concluded negotiations for a three year collective bargaining agreement.
The Union membership has reviewed the proposed Agreement and voted to ratify it as presented.
While negotiators for the City and the Union were obliged to represent the best interests of their
"clients", the shared goal was to produce an Agreement that guaranteed equitable and competitive
compensation and working conditions. The following is a summary of the most significant changes
from the previous Agreement.
Wages
The term of the Agreement will extend three years from October 1, 1997 through
September 30, 2000. Effective with the payroll dates of September 29, 1997, September 28, 1998,
and September 27, 1999, of each of those three years, bargaining unit employees will receive a three
percent (3%) pay raise.
AGENDA ITEM
DATE
continued...
C71
9-a3-q�
COMMISSION MEMORANDUM PAGE 2
Based on current. active employees, the estimated costs for the wage increases are $255.000 for
Fiscal Year 1997/1998; $270,000 for Fiscal Year 1998/1999; and $280,000 for Fiscal Year
1999/2000.
The IAFF was granted a "Rule of 70" retirement benefit for the bargaining unit effective
October 1, 1998, i.e., bargaining unit member will be eligible to retire when their age and years of
service equal 70. This benefit will increase the City's contribution by approximately $300,000
annually, commencing in Fiscal Year 2000.
The parties also negotiated a Deferred Retirement Option Plan (DROP) for this bargaining unit.
Under DROP, an active employee may enter DROP for a period not to exceed 36 months after the
employee becomes eligible for a normal service retirement, subject to the conditions outlined in
Section 7.21 of the bargaining agreement. When implemented, the City will realize a savings in that
it will not be required to tender the City's pension contribution to the Pension Plan for any employee
electing to participate in the DROP Plan. The amount of the savings will vary from year to year
with fluctuations in the number of DROP participants and the amount of pension contributions
required by the Plan's actuary. Based on current factors, we would anticipate that, initially, annual
DROP -produced savings in the Fire Service will be between $100,000 and $200,000.
Both the Rule of 70 and the DROP were conditioned upon the Police and Firefighters Pension Board
adopting a "fresh start" method that values plan assets at 100% of their current market value. At
present, they are valued at 82% of market value. That change will reduce the City's Fiscal Year
1998/1999 plan contribution by $4,000,000.
The Tier B language that modified the pay plan by affecting a 15% salary reduction for those
bargaining unit employees who were hired after April 1, 1993 has been eliminated. The estimated
costs involved to increase the salaries of the affected bargaining unit employees to the Tier A level
through three extra step increases of 5% each are $45,000 for Fiscal Year 1997/1998; $48,000 for
Fiscal Year 1998/1999; and $50,000 for Fiscal Year 1999/2000. Additionally, the Tier B Pension
Plan for Firefighters will be eliminated as of September 30, 2000, at an estimated annual cost of
$106,000.
Effective on the date that the IAFF Agreement is ratified by the City, the two-tier pay plan will be
eliminated as follows:
Current employees hired under the Tier B pay plan, Step A, will have their pay
advanced by one step on September 29, 1997; one step on September 28, 1998; and
one step on September 27, 1999.
continued...
COMMISSION MEMORANDUM PAGE 3
Other Issues
The language that provided this bargaining unit with the opportunity to sell a portion of their sick
leave balance back to the City during their employment has been eliminated.
Per past practice, employees will be reviewed annually under the City's merit plan. The plan for this
bargaining unit will continue to provide a 5% Step increase on the employee's anniversary date for
satisfactory performance during the rating period until an employee has reached his/her pay range
maximum.
The promotions language has been amended and will provide an estimated cost savings of $30,000
to the City for the preparation of the examinations.
Given the availability of the various voting alternatives, i.e. absentee ballots, language has been
inserted in the Agreement to discontinue the past practice of allowing paid time off to vote.
To increase confidence in the parties' commitment to a drug free workplace, especially for
employees responsible for life and safety issues, bargaining unit employees will be subject to
random drug testing.
Because of the unique nature of their work, the City agreed to grant a presumption that Firefighters
who become infected with HIV have a work related illness, unless the City proves a contrary cause.
CONCLUSION
The Administration recommends that the City Commission ratify the attached collective bargaining
agreement negotiated between the City of Miami Beach and the IAFF, and adopt the attached
resolution authorizing the Mayor and City Clerk to execute the Agreement.
SR:IZWB:lsg
Attachments
a.\Comm-memo 98\IAFF9720 CTR