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2013-28301 Reso RESOLUTION NO.i 2013-28301 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA RATIFYING A THREE YEAR LABOR AGREEMENT BETWEEN THE CITY OF MIAMI BEACH AND THE INTERNATIONAL ASSOCIATION OF FIRE FIGHTERS, (IAFF), LOCAL 1510; FOR THE PERIOD FROM OCTOBER 1, 2012 THROUGH SEPTEMBER 30, 2015; AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE THE AGREEMENT. WHEREAS, the City is hereby submitting to the Mayor and City Commission the attached tentative Labor Agreement, recently negotiated between the City and the International Association of Fire Fighters, (IAFF), Local 1510, for the employees covered by said Agreement for the period covering October 1, 2012 through September 30, 2015; and WHEREAS, the previous Labor Agreement was for a three year period from October 1, 2009, through September 30, 2012; and WHEREAS, Exhibit A to the resolution is a copy of the contract language changes in _ substantial form that reflects the pension and economic issues and the non-economic issues tentatively agreed to between the City and the IAFF; and WHEREAS, any changes to the substantial form would be non-material in nature as determined by the City Attorney and the IAFF or else would require re-ratification by the City Commission and the IAFF; WHEREAS, the full text of the collective bargaining agreement has not yet been completed; and WHEREAS, the IAFF bargaining unit has not scheduled the ratification vote among its members for the proposed Labor Agreement attached. WHEREAS, since the outcome of the ratification vote will not be made available in time, the results will be provided to the City Commission under a supplemental 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 amend the three (3) year labor Agreement with the IAFF, Local 1510, (provided in Exhibit A), for the time period covering October 1, 2012 through September 30, 2015, contingent on any changes being non-material and upon ratification by the IAFF bargaining unit. PASSED AND ADOPTED this ZNay of , 2013. ATTEST: -i"OA RAFAEL GRANADO - P ' - M TTI HERRERA BOWER CITY CLERK E MAYOR QR T9� - 26 -7/,-7/0 C'.A9iom Date COMMISSION ITEM SUMMARY Condensed Title: A Resolution Of The Mayor And City Commission Of The City Of Miami Beach, Florida, Ratifying A Three Year Labor Agreement Between The City and the International Association of Fire Fighters(IAFF), From October 1,2012 Through September 30,2015. Key Intended Outcome Supported: Control costs of payroll including salary and fringes/minimize taxes/ensure expenditure trends are sustainable over the long term. Item Summary/Recommendation: After 11 formal negotiation sessions and a number of informal discussions, the City and IAFF successfully concluded negotiations and reached a tentative three (3) year labor Agreement covering the time period of October 1, 2012 through September 30, 2015. The concessions for existing employees include a zero Cost of Living Adjustment (COLA) for 24 months, the elimination of certain incentive pays and significant changes to pension benefits for current employees including: benefit multiplier of 3%for first 20 years and 4% thereafter; maximum pension benefit of 85%, 5 year vesting, FAME highest 3 years, normal retirement based on rule of 70 with minimum age 47 (age 48 for post-2010 hires) elimination of buyback of creditable service excluding military time, state imposed limitations of 300 hours of overtime and elimination of accrued leave to purchase additional benefits. In addition, IAFF has also agreed to pension plan changes for future IAFF employees that include an increase to the employee's pension contribution from 10% to 10.5% of pensionable pay; increasing the Final Average Monthly Earnings (FAME)from 3 highest to 5 highest years; and automatic membership into the pension plan upon hire.The pension changes will yield a savings of almost$2.1 million in the first year and almost$2.2 million in year two. In exchange for adding an additional step to the Fire Fighter I classification effective April 1, 2015, IAFF has agreed to reduce holiday pay for 24-hour shift personnel from 9 to 6 hours per holiday in order to help offset the annualized impact of the additional step. The City has agreed to a 3% Cost of Living Increase on October 1, 2014, a non-pensionable hazardous duty payment of$100 biweekly, reimplementation of a Sick Sell Back Pilot Program that expires on September 30, 2015, changes to promotional testing, take-home vehicles for day shift (3 employees), increase in on-call supplement for Fire Investigators and the PIO effective 10/1/12, increase in the rollover hours for the union time bank from 500 to 750 hours per year, paramedic pay recertification $200 flat rate for eligible employees on 10/1/12 and an increase from $300 to $500 effective 10/1/13 on a biennial basis and establishment of Post Employment Health Program (PEHP) of $25.00 per employee at no cost to the City. Advisory Board Recommendation: Budget Advisory Committee Pension Reform Initiative Recommendation Report August 2012 Financial Information: Source of Amount Account Funds: 1 FY 2012/13 On-call supplement increase from$100-$300 for Fire Investigators and PIO effective $6,000 10/11/12. 2 FY2013/14 Implementation of pension changes for current and future employees; Sick Sell Back ($1,977,771) Program; Union time bank rollover; Take-home vehicle assignment; On-call supplement; Paramedic certification pay from$300-$500 for those eligible in FY 2012/13 3 FY2014/15 Pension changes for current and future employees; 3% salary COLA; Increase step of (1,010,815) Firefighter I on 4/1/15, Sick Sell Back Program; Union time bank rollover, Take-home vehicle assignment, On-call supplement, Paramedic certification pay from $300-$500 for those eligible in FY 2014/15 OBPI Total $2,982,586 Financial Impact Summary: The 3 year savings represents a per member impact of ($15,698). In addition, these concessions will yield additional, recurring, long-term savings in future fiscal years. The net present value of savings over 30 ears for both FOP and IAFF is $145 million. City Clerk's Office Legislative Tracking: [—Sylvia Crespo-Tabak, Human Resources Director Sign-Offs: Department Director Assistant City Manager City Manager Sylvia Crespo-Tabak Kathie rooks Jimmy L. Morales AGENDA ITEM ► `�� MIAMIBEACH DATE - DI 3 MIAMI BEACH City of Miami Beach, 1700 Convention Center Drive,Miami Beach, Florida 33139,www.miamibeachfl.gov COMMISSION MEMORANDUM TO: Mayor Matti Herrera Bower and Me bers of th City Commission FROM: Jimmy L. Morales, City Manager DATE: July 17, 2013 SUBJECT: A RESOLUTION OF THE MAYO k AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA RATIFYING A 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, 2012 THROUGH SEPTEMBER 30, 2015; AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE THE AGREEMENT. ADMINISTRATION RECOMMENDATION Adopt the Resolution. BACKGROUND The City's workforce is divided into seven salary groups: (1)those covered by the American Federation of State, County and Municipal Employees, Local 1554(AFSCME)bargaining unit;(2)those covered by the Communications Workers of America, Local 3178(CWA)bargaining unit; (3)those covered by the Government Supervisors Association of Florida/OPEIU, Local 100 (GSA) bargaining unit; (4) those covered by the Fraternal Order of Police, William Nichols Lodge No. 8(FOP)bargaining unit; (5)those covered by the International Association of Fire Fighters, Local 1510 (IAFF) bargaining unit; (6) Unclassified; and (7) "Others" (classified service employees not represented by a bargaining unit). 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 on September 19, 2012. After ten formal negotiation sessions and several informal discussions, on June 26, 2013, the City and IAFF reached a tentative three-year labor agreement covering the time period of October 1, 2012 through September 30, 2015. The IAFF leadership will schedule a ratification vote on the proposed agreement prior to July 31,2013. If approved by a majority of the membership, the result of the vote will determine the ratification effective date. During the October 1, 2009—September 30, 2012, collective bargaining process the parties negotiated changes that resulted in employee givebacks of over$15 million between Fiscal Year(FY)2009/2010 and FY 2010/2011 and $20 million when you include FY 2011/2012(Unclassified and Others, although not represented by a union, also contributed to the employee giveback total). These givebacks included a number of pension changes applicable to current and future employees who participate in the Miami Beach Employees' Retirement Plan(MBERP)and resulted in reducing the City's pension contributions for the short and long-term. Pension changes for the Fire and Police Pension Plan were negotiated for implementation in 2010; however, they were insufficient to address the short term and increasing benefit cost which, in recent years, has represented the fastest growing cost in the City's budget. City Commission Memorandum July 17,2013 IAFF 2012-2015 Collective Bargaining Agreement Page 2 of 7 The draft Valuation for the Fire and Police Pension Plan estimates the City's Annual Required Contribution-(ARC) payable October 1, 2014 to be $41.5 million. This represents an increase of $2.2 million in the Fire and Police Pension Plan when compared to last year. In the adopted FY 2012/13 budget, employee givebacks represented $3.782 million in savings (approximately $3 million in the General Fund) which were to be allocated among the seven salary groups. The methodology to allocate the givebacks for each salary group was the proportionate share of the City's total costs for pension and health benefits for FY 2012/13,as in recent years these have been major personnel expenditure cost drivers. However, to date, no savings have been achieved for FY 2013/14 for IAFF as negotiations focused on achieving major pension savings going forward. ANALYSIS The IAFF collective bargaining agreement for October 1, 2009, through September 12, 2012, included employee concessions that provided a savings to the City's budget during the contract period. The employee concessions agreed to by the IAFF generated enough savings to address the targeted employee givebacks established for the IAFF for FY 2009/10 and FY 2011/12. However,the concessions that were negotiated with the IAFF were implemented for an 18-month period and failed to provide the City with any significant recurring, long-term savings. IAFF's portion of the$3.782 million in employee givebacks for the current fiscal year(FY 2012/13)was $900,000. In addition, the Administration received direction from the City Commission to negotiate changes to the Fire and Police Pension Plan that would generate a savings of$6 -$8 million from the City's Annual Required Contribution(ARC)in the first year. In addition, any negotiated pension changes would need to yield recurring, annual savings from the City's ARC, as well as a reduction to the Unfunded Actuarial Accrued Liability(UAAL). On September 30, 2012, the 2009-2012 IAFF collective bargaining agreement expired. The City and IAFF began meeting in September 2012, to negotiate a successor agreement. After eleven formal negotiation sessions and several informal discussions, on June 26, 2013, the City and IAFF reached a tentative three year agreement covering the period October 1, 2012, through September 30, 2015. The City initially proposed the Budget Advisory Committee's(BAC)recommendation of a hybrid plan for new and non-vested employees in the Fire and Police Pension Plan. The BAC recommendation was anticipated to save $2.5 million in year one and a $74 million net present value over thirty years. The City actuary updated the estimated figures based on the October 1, 2011 Valuation with an estimated savings of$3.6 million in year one. The IAFF leadership will schedule a ratification vote on the proposed agreement prior to July 31,2013. If approved by the majority of the membership, the result of the membership vote will determine the effective date for ratification of the three year labor agreement. Pension Adjustments/Chances The tentative agreement between the IAFF provides for several pension changes applicable to current and future employees, including the following: • Final Average Monthly Earnings(FAME)—Effective September 30, 2013, the FAME for current IAFF bargaining unit employees hired prior to ratification of the agreement will have the average of the three (3) highest years; and future employees will have the average of highest of five(5) years. • Maximum Benefit — Currently, the maximum pension benefit is 90 percent of pensionable City Commission Memorandum July 17, 2013 IAFF 2012-2015 Collective Bargaining Agreement Page 3 of 7 earnings. Effective September 30, 2013, the maximum benefit will be reduced to 85 percent of pensionable earnings. Employees, who as of September 30, 2013, have attained a pension benefit of 85 percent or higher, are eligible to continue to earn the 90 percent maximum benefit. • Vestin_q—The vesting period was reduced from ten to five years. • Prior Creditable Service—Currently, upon completion of ten years of creditable service(vesting) with the City, employees can purchase prior creditable service of up to two years of full-time public safety service as a public safety officer prior to City employment,up to four years of military service and up to an additional six percent multiplier on the additional creditable service years purchased; however,the maximum benefit purchased shall not exceed twelve percent. Effective September 30, 2013, all bargaining unit employees will be limited to purchasing only military service for up to two years, at three percent each year for a maximum benefit of six percent. The employee will pay the equivalent of their employee contribution amount in effect at the time of purchase (10 percent per year of purchase for employees hired prior to ratification of this agreement and 10.5 percent per year of purchase for all new employees hired thereafter). • Probationary Period and Contribution of Pensionable Earnings — All new hires will become members of the Fire and Police Pension Plan effective on their hire date and will contribute 10.5 percent of their pensionable earnings immediately. • Overtime, Off-duty and Accrued Leave—In the past, employees were able to apply unused sick and/or vacation time for inclusion in their salary for pension purposes at the equivalent rate of their employee pension contribution. For example:for each$100 of unused sick and/or vacation time (at the member's hourly rate), $90 was applied toward their FAME and $10 contributed to the pension fund. As a result of recent changes in Florida statutes, accrued leave can no longer be used to increase pension benefits and the application of overtime toward their FAME is limited to 300 hours. • Deferred Retirement Option Plan (DROP) and Retiree COLA — Currently bargaining unit employees hired prior to July 14, 2010, receive a 2.5 percent annual retiree COLA, unless they entered the DROP after September 1, 2012, and forfeited the Retiree COLA for years three and four in the DROP. Bargaining unit employees hired on or after July 14, 2010, are eligible to receive a 1.5 percent annual Retiree COLA. Any member who joins the DROP on or after September 30, 2013, will be eligible to receive a Retiree COLA each year that they participate in the DROP. The rate at which the member earns his/her annual Retiree COLA shall be based on hire date(2.5 percent for all pre-2010 members and 1.5 percent for all post-2010 members). • DROP and Leave Payouts— Effective October 1, 2013, any bargaining unit member currently participating in the DROP, or who enters the DROP, may elect to request a full or partial payment of earned sick and vacation leave balances up to the maximum amount stipulated in the collective bargaining agreement and applicable pension ordinance. Eligible employees will have until June 30 of each year to exercise this option,and receive payment during the first pay period ending in October of the same year. Any amount paid out to an employee upon entering the DROP will be deducted from the cap for their maximum leave payout upon leaving the DROP. City Commission Memorandum July 17,2013 IAFF 2012-2015 Collective Bargaining Agreement Page 4 of 7 • Miami Beach Employees'Retirement Plan (MBERP) Service Transfer—Upon ratification of the collective bargaining agreement, MBERP members will not be eligible to transfer creditable service time from MBERP to the Fire and Police Pension Plan if they are subsequently employed in a classification covered by the IAFF bargaining unit. • RetirementAge—Under the current contract, employees hired prior to July 14 2010,can retire at either the rule of 70 (age plus creditable years of service)or at age 50. Effective September 30, 2013, employees hired before July 14, 2010, may retire based on the rule of 70 with a minimum age of 47. Employees hired on or after July 14, 2010, may retire based on the rule of 70 with a minimum age of 48. However, because some members who have already purchased additional creditable serviced may reach the maximum benefit of 85 percent prior to age 47, the City is exploring how to address these employees such as allowing them to cease their employee contribution to the pension plan during this period. These impacts, if any,will be presented during the first reading of the amendment to the pension ordinance,which we anticipate to be at the September 11,2013, City Commission meeting. • Benefit Multiplier— Effective September 30, 2013, the benefit multiplier for all bargaining unit members shall be three percent for year one through twenty,and four percent per year thereafter. Changes for New Employees Hired on or after July 17, 2013 • Employee Pension Contribution = 10.5% of Pensionable Earnings • FAME = 5 Highest Years • Enter directly into the Fire and Police Pension Plan upon hire date (vs. currently enter upon successful completion of probationary period (12 months for Firefighter and 18 months for Police Officer). The aforementioned changes that have been agreed to by both FOP and IAFF are projected to generate savings as follows, subject to actuarial confirmation by Buck Consultants, the Fire and Police Pension Board Actuary: ARC Savings Unfunded Liability Savings in Millions) (in Millions Year 1 $5.666 $24.37 Year 2 $6.034 $24.25 Year 3 $6.391 $23.55 Year 4 $7.065 $30.02 Year 5 $7.988 $34.56 Year 6 $8.721 $40.41 Further, the projected 30-year net present value savings for these changes is estimated at$145 million. The draft Actuarial Impact Statement by Buck Consultants is provided as Attachment 1. City Commission Memorandum July 17,2013 IAFF 2012-2015 Collective Bargaining Agreement Page 5 of 7 In addition to the significant pension reform agreed upon for members of the Fire and Police Pension Plan, the following provides a summary of the remaining items tentatively agreed upon by the City and IAFF. ECONOMIC PROVISIONS In addition to the significant pension reform agreed upon for members of the Fire and Police Pension Plan, the following provides a summary of the remaining items tentatively agreed upon by the City and IAFF. The entire tentative collective bargaining agreement is provided as Attachment 1 to this memorandum. • Cost of Living Adjustment(COLA) • Effective October 1, 2012, there will be no across-the-board wage increases. • Effective October 1, 2013, there will be no across-the-board wage increases. • Effective October 1, 2014, there will be a three percent (3%) across-the-board. wage increase that will extend the minimum and maximum of the salary ranges for all classifications covered by the IAFF bargaining unit. The FY 2014/15 estimated impact to the City from the 3% COLA is $558,223. • Step Increases • Effective October 1,2012, step increases will remain status quo for any employee who is eligible to receive a step on their anniversary date. • Effective April 1, 2015,there shall be an additional step added to the maximum of the pay scales for the classifications • Effective April 1,2015,the Firefighter I classification salary range will be extended by one additional step(Step 1),which will result in a five percent increase to the maximum of the range. The estimated impact for FY 2014/15 is $91,000. The annualized impact for FY 2015/16 is $319,505. The implementation of the additional step was subject to the IAFF agreeing to recurring concessions that would offset the impact of the additional step. • Concessions to Offset the Additional Step Added to Maximum of the Range for Fire Fighter I o Reduction in Hours of Holiday Pay — To help offset the increase in the Firefighter I classification salary range, effective April 1, 2015, holiday pay for all 24-hour personnel shall be reduced from nine to six hours. The estimated impact for FY 2014/15 will yield a savings of approximately($62,242),with an estimated annualized savings of($207,500). Other Economic Provisions • Sick Sell Back Pilot Proc r� am Effective October 1, 2013, the City will reinstitute a Sick Leave Sell Back Program. The purpose of this program is to provide an incentive for police officers to utilize less sick leave, increase the "show-up rate",thereby decreasing the need for overtime during staffing shortages and reducing the amount of overtime paid due to sick call outs. The "show-up rate" has been identified as a significant driver of overtime costs in the Police Department. The Sick Leave Sellback Program would allow the sell back of up to one hundred forty-four hours for 24-hour shift personnel and ninety-six hours for day shift personnel, payable in November of each year that the program is in effect, as long as the employee retains a minimum of 400 hours of combined sick and vacation leave for 24-hour shift personnel and 300 hours of combined sick and vacation leave for day shift personnel and meets other necessary requirements as outlined in the program. The maximum City Commission Memorandum July 17,2013 IAFF 2012-2015 Collective Bargaining Agreement Page 6 of 7 number of sick leave hours that may be sold back on each sell back date shall be reduced by one hour for each hour of sick leave the employee used during the applicable annual sell back period (e.g., if an employee uses ten hours of sick time, then he/she is only eligible to sell back eighty-six hours. Year 1 of the program will cover the period of October 1, 2013 through September 30,2014,with payment to all qualifying participants in November 2014,and year 2 of the program will cover the period of October 1, 2014 through September 30,2015,with payment to all qualifying participants in November 2015. Based on historical participation patterns when the program was in effect during the 2006-2009 contract, a 50 percent participation assumption would yield a cost for the sellback of sick hours per participant of$587,812 offset by a reduction in overtime of($321,253)for each year of the program. The net anticipated impact for FY 2013/14, payable in November 2014, based on 50 percent participation, is a cost of 266,559 for each year, representing a total cost of$533,118 for the duration of the two year program. This pilot program will sunset September 30, 2015, with final payments distributed in November 2015 for the October 1, 2014 through September 30, 2015 Sick Sell Back Program period. The maximum exposure based on 100 percent participation in the program is a cost attributed to sellback of sick hours of $1,150,000 in Year 1, offset by a maximum of overtime savings of ($642,522)for each year, for a total maximum cost of$1,014,956. The pilot program automatically sunsets upon expiration of the collective bargaining agreement on September 30, 2015. • Hazardous Duty Pay— Effective April 1, 2015, bargaining unit employees will receive $100 per pay period of non-pensionable hazardous duty pay. The estimated impact for FY 2014/15 is 247,000, with an annualized cost of$494,000. In recent years the State of Florida Division of Retirement has become more flexible in interpreting language agreed to through the collective bargaining process. However, there is a risk that the State may determine that this pay must be pensionable. • Paramedic Recertification Pa V— Effective October 1, 2013, the recertification pay will increase from $300 to $500. In addition, there will be a retroactive one-time payment of $200 to retroactively compensate eligible employees who received recertification pay in FY 2012/13.The annual estimated impact is a cost of$37,200, for a total cost of$74,400 for the contract period. • Union Time Bank—Effective October 1, 2013,the annual union time rollover increased from 500 to 750 hours. The annual estimated impact is a cost of$14,250,for a total cost of$28,500 for the contract period. Non-economic Provisions • Post-employment Health Plan — Effective the first pay period ending in October of 2013, bargaining unit members will contribute $25 per pay period toward a post-employment health plan and ten percent of the combined leave payouts upon separation from the City. IRS regulations require that all bargaining unit members participate and the City agreed to facilitate the transactions as long as there were no costs to the City. The IAFF, Local 1510 will be fully responsible for selecting a plan administrator and the City shall have no involvement, cost or liability. • Fire/Rescue Recreation Fund — This section was deleted from the collective bargaining City Commission Memorandum July 17,2013 IAFF 2012-2015 Collective Bargaining Agreement Page 7 of 7 agreement. • Implementation of Reorganization — This section was deleted from the collective bargaining agreement. • Promotional Lists—The parties agreed to reduce the active life of promotional lists from 36 to 30 months. • Domestic Partnership Tax Credit—The parties agreed that upon ratification of this agreement and for as long as the federal tax code imposes a heavier tax burden upon City employees with domestic partners who elect to purchase dependent medical and dental health insurance over that of their married counterparts, the City will reimburse those employees for the additional tax assessed. The parties further agreed that this reimbursement is non-pensionable income to the employees. CONCLUSION The terms and conditions of the proposed three year labor agreement between the City and IAFF assumes a $6,000 impact for FY 2012/13; a savings of($1,998,000)for FY 2013/14; and ($1,010,815) for FY 2014/15. The total estimated three year impact is ($2.99) million. The significant changes to pension benefits for current employees will result in long-term, recurring pension savings. Based on the Actuarial Impact Statement provided by Buck Consultants(Attachment 2), the total pension Plan savings for both Fire and Police which, include changes for future employees will yield a savings of($5.66 million) in FY 2013/14 and a savings of($6.034) in FY 2014/15, for a total savings of($11.694)million. Based on percent of payroll,the pension changes agreed to by IAFF result in a savings of ($2.06) million in FY 2013/14 and a savings of($2.19) million in FY 2014/15, for a total savings of($4.25) million. At the time of this writing, IAFF has not scheduled the ratification vote of the proposed agreement for their membership. The Administration recommends adopting the resolution to ratify the three year labor agreement with the IAFF bargaining unit for the time period covering October 1, 2012, through September 30, 2015, subject to the outcome of the ratification vote for the IAFF membership. Exhibit A to the resolution is a copy of the contract language in substantial format.Since the results of the ratification vote will not be available for the July 17, 2013, City Commission meeting, the results will be provided to the City Commission as soon as the City receives the certified results. Attachments JLM/KGB/SC-T/CMG T:\AGENDA\2013\July 17\IAFF\IAFF 2012-2015 Labor Agreement Memo.doc i ATTACHMENT 'I s A Xerox Company P Y July 16, 2013 CONFIDENTIAL Ms. Kathie Brooks Assistant City Manager 1700 Convention Center Drive Miami Beach, FL 33139 Dear Kathie: Actuarial Impact of Proposed Plan Changes to the City Pension Fund for Police Officers and Firefighters in the City of Miami Beach-. As requested, we have calculated the estimated impact of the proposed changes to the City Pension Fund for Firefighters and Police Officers in the.-City of Miami Beach (Pension Fund). Summarized below are the proposed plan changes and the cost impact of these changes. A combination of the following changes to the Pension Fund: M • Amend the Plans Final Average Earnings,-calculation, for participants hired prior to July 175 2013, from the average of the highest 2 years of compensation to the average of the highest 3 years of compensation effective for fiscal years ending after September 30, 2015. . • Amend the Plan's Final Average Earnings calculation, for participants hired on or after July 17, 2013, from the average of the highest 3 years of compensation to the average of the highest 5 years of compensation effective for fiscal years ending after September 30, 2015. • Extend the Benefit Accrual Rate of 3% per annum up from 15 years of service to 20 .years of service with a 4% multiplier for service greater than 20 years, subject to a maximum pension. benefit of 85% of Final Average Earnings. Participants exceeding 85%of their pension benefit at September 30, 2013 will be grandfathered at 90%. • Amend the rule of 70 (age plus service) criteria to require participants to also attain age 47, for participants hired prior to July 15, 2010, with the exception of three members. These three members will not be subject to the minimum age requirement under the rule of 70. For participants hired after July 14, 2010 the rule of 70 (age plus service) will be amended to require participants to also attain age 48. Ms. Kathie Brooks July 15, 2013 Page 2 • Freeze the cost of living adjustment component for salary increases in fiscal years 2012/2013 and 2013/2014 and grant a cost of living adjustment of 3% in fiscal year 2014/2015. • Change the vesting requirement from 10 years of service to 5 years of service. • Eliminate the ability to purchase prior creditable service or additional multiplier except for prior military service up to 2 years at 3%each year for a maximum of 6%. The cost to the employee would be at 10% for those hired prior to July 17, 2013 and 10.5% for those hired on or after July 17, 2013. • Reinstate the annual cost of living adjustment in all years for participants who enter the DROP on or after September 30, 2013. • Eliminate the use of accrued leave to purchase additional benefits and cap the maximum overtime hours that can be used for pensionable pay at 300 hours per Florida statute. • Eliminate the ability to transfer creditable service from the Miami Beach Employees Retirement Plan(MBERP)to the Miami Beach Fire and Police Pension Plan. • Overtime, off-duty and unused sick and/or vacation leave for Police Officers that can be included in the computation of pensionable pay is limited to 11% of the highest annualized pay rate for the same salary rank of the member at the time of retirement. • Eliminate the probationary period for new hires to become participants in the pension plan. • Extension of Ranges for Firefighter I, Police Officer, Sergeant of Police and Police Lieutenant effective April 1, 2015 (Proposed Maximum includes the 3% COLA payable on October 15 2014 and 5%additional Step effective April 1, 2015 for eligible members) Current Current Proposed Proposed Minimum Maximum Minimum Maximum* Firefighter I— 45,139.11 74,745.85 451139.11 801837.64 Day Shift Police Officer 53,309.01 75,033.33 53,309.01 819148.55 Police Sergeant 78,748.42 86,852.71 785748.42 935931.21 Police 86,852.71 100,532.31 86,852.71 108,725.69 Lieutenant Ms. Kathie Brooks July 16, 2013 Page 3 Cost Impact of Plan Changes: The 30 year cost impact of the combined code changes outlined above is outlined in appendix A attached to this letter. Data, assumptions,Methods and Plan Provisions: The calculations contained in this study are based on the data, assumptions, methods and plan provisions used for the October 1, 2012 actuarial valuation of the System. The salary scale assumption has been reduced to reflect the cost of living freeze reference above. I am an Enrolled Actuary and meet the qualification standards of the American Academy of Actuaries to render the actuarial opinion contained in this letter. Please note that any changes to Pension Fund would need to be documented in an impact statement and submitted to the State for acceptance. If you have any questions, please do not hesitate to contact me. S incerely, i J.OS4 L. Griffin ASA, EA, MAAA, FCA Director, Consulting Actuary cc: Mr. David Campbell—Buck Consultants/Atlanta Mr. Steward Sainvil—Buck Consultants/Atlanta PARetirement\Miami Beach Fire and Police\2013\Union Pricing\Correspondence\2013 Union Negotiation Pricings ReWts-Scenano 5.docx 00993-0001 RET03 r M C r-1 00 111 f� l0 N Q n Y V 7 m O O O O O O O O O 1p N M M ` 00 M N I� l0 Q G1 1-1 lD cn O O O O O O O O O f9 w v O 00 � a 0 0 0 0 0 0 CL o O rl V vl m c 0000 00 In C 4J a, V v Y M •E 0 0 00 m O o O C ; k o C c tl 4 m O 0 0 0 000l 0 0 0 0 0 0 V N rlLn cn f0 ll La M } _NLO s -- .0 0 0 0 0 0 0 H O o C � Ln m lf1 N O V cu v � w N o V A' O O O O l0 w kD c C Cl lD rl o v N Ln Ln a u H L s a a� J C L u L `u M Q Q u u° m � z E �, o a LL E c m O Y C z D a O O U c c C M w •_ = N N -a O A c •a v v v M X a u u u ar u v O C C a\vi a a�Vi N ON N N d 0 CL E CL f0 m V N c c c c z N M O O O A O O O O cT �I O f0 } 01 -1 u 7 O O O O O O O O O N M In O Q1 M V1 C m c0 v N u1 } 01 O O O O O O O O O 00 .q cq mI 0) Q 00 l 1 D O1 } O O O ^ O O O i O O O M N� co •E a O O O O °m ^� M l&0 O mI V1 Q V ca 0 0 0 0 0 0 V o Cr LK f- v N m y .� orq N O o 0 L N 00 t!1 � N M lf1 0 0 0 m 01 M m M to � oo a1 > =ten o V M r m Nf L Z u � C � o L Y 3 I.L. 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O O O O O O s O o 0 N 0 N n m m M O U1 cu//��� -1 N m W } n(. co E O O O Lf�^ O O O •� N M --I, 001 M m o 0 M rn m i 0 cu 1l N } f� A O O O V ni ri m N m l0 m N 01 l0 to w .--1 M N } 00 r o N N O O O L c*i o m N o V r-I 0000 N W ® O o 0 V N 11% m Ln �I N n Q -4 O N r-1 } O1 N L � u � c o L Y � LL m J C L v U v C �_ m a u 7 = E n ¢ "u �.. L u y 5 CC LL m 3 o c c y c N1 o c r = z D ¢ O ® bA c c c m w o ;A .V m ro m Q C .L v d v X CL Q u u u v v v 0 0 C w GJ ^ Q M M M M aJ O CL C v a v MMMML v CL Q u u u u m V) c c c Z a EXHIBIT A AGREEMENT BETWEEN CITY OF MIAMI BEACH, FLORIDA and the FIRE FIGHTERS OF MIAMI BEACH INTERNATIONAL ASSOCIATION OF FIRE FIGHTERS LOCAL 1510 AFL-CIO-CLC Period Covered October 1, 2012 through September 30, 2015 TABLE OF CONTENT PAGE AGREEMENT 1 . ARTICLE 1 RECOGNITION 2 ARTICLE 2 DEDUCTION OF UNION DUES Section 2.1 Check-off 3 Section 2.2 Indemnification 3 ARTICLE 3 GRIEVANCE PROCEDURE Section 3.1 Definition of Grievance and Time Limit for Filing 4 Section 3.2 Definition of Week Day 4 Section 3.3 Grievance Procedure 4 Section 3.4 Election of Remedies 5 Section 3.5 Binding Arbitration 6 Section 3.6 Authority of Arbitrator 6 Section 3.7 Expenses 7 Section 3.8 Processing Grievances 7 Section 3.9 Suspensions. Reductions in Pay or Class of Removal 7 Section 3.10 Probationary Period 7 Section 3.11 Union Grievance Committee 8 Section 3.12 Waiver of Time Limitations 8 ARTICLE 4 NO STRIKE AND NO LOCKOUT Section 4.1 No Strike 9 Section 4.2 No Lockout 9 ARTICLE 5 MANAGEMENT RIGHTS 10 ARTICLE 6 GENERAL PROVISIONS Section 6.1 No Discrimination 11 Section 6.2 Union Activity 11 Section 6.3 Seniority List 11 Section 6.4 Relief at Fire 11 Section 6.5 Exchange of Time 11 IAFF - 2 PAGE Section 6.6 Protection of City Property and Equipment 11 Section 6.7 Uniforms 12 Section 6.8 Meetings Between Parties 12 Section 6.9 Time Bank 12 ri Section 6.10 Line of Duty Injuries 13 Section 6.11 Change in Shifts 13 Section 6.12 Fire and Rescue Off Duty Services 13 Section 6.13 Promotional Examinations and Appointments 14 Section 6.14 Light Duty Assignments 20 Section 6.15 Injury Service Connected 21 Section 6.16 Jury Duty 22 Section 6.17 Reduction in Work Force 22 Section 6.18 Infectious Disease Presumption 22 Section 6.19 Seniority Bid System 23 Section 6.20 Minimum Staffing 23 ARTICLE 7 WAGES AND FRINGE BENEFITS Section 7.1 Wage Increases 24 Section 7.2 Suppression Division 24 Section 7.3 Assignment Pay 25 Section 7.4 Paramedic and EMT Pay 25 Section 7.5 Certification Pay 25 Section 7.6 Paramedic Training 25 Section 7.7 Fire Inspector Training 27 Section 7.8 Work Out of Classification 27 Section 7.9 Overtime 28 Section 7.10 Call In Guarantee 28 Section 7.11 Holidays 28 IAFF - 3 PAGE Section 7.12 Vacation Benefit 30 Section 7.13 Negotiation Pay 30 Section 7.14 Sick and Vacation Leave Accrual and Maximum Payment Upon 30 Termination Section 7.15 Hours of Work 31 Section 7.16 Insurance 31 Section 7.17 Recertification 36 Section 7.18 Court Time 37 Section 7.19 On Call 37 Section 7.20 Shift Training Coordinator 37 Section 7.21 Pension Pick-up 37 Section 7.22 Rescue Out of Class (ROC) 38 Section 7.23 Pension 38 Section 7.24 Buy Back of Probationary Time 44 Section 7.26 Voting Time 45 Section 7.27 Commission on Fire Accreditation International Pay Supplement 45 Section 7.28 Compensation Plan 45 Section 7.29 Shift Fire Investigator 46 ARTICLE 8 JOINT OCCUPATIONAL SAFETY AND HEALTH Section 8.1 Committee Make-up and Responsibilities 47 Section 8.2 Personal Equipment 48 Section 8.3 Ladder Training 48 Section 8.4 Air Quality Evaluations 48 Section 85 SCBA Repair 48 ARTICLE 9 LEAVE OF ABSENCE Section 9.1 Educational Leave and Tuition Refund 49 Section 9.2 Bereavement 49 ARTICLE 10 TRANSFER OF SERVICES IAFF - 4 PAGE Section 10.1 Notice 50 Section 10.2 Discussions 50 ARTICLE 11 DRUG/ALCOHOL TESTING Section 11.1 Selection 51 Section 11.2 Screening 52 Section 11.3 Expedited Arbitration 54 Section 11.4 Rehabilitation 55 ARTICLE 12 SAVINGS 56 ARTICLE 13 WAIVER AND ENTIRE AGREEMENT 57 ARTICLE 14 TERM OF AGREEMENT 58 EXECUTION 59 ELECTION OF REMEDY FORM 60 HEARING EXAMINER RULES 61 COMPENSATION PLAN 64 IAFF - 5 IAFF - 6 AGREEMENT THIS AGREEMENT, made and entered into this day of , 2013 by and between the City of MIAMI BEACH, FLORIDA (herein called the "City"), and the FIRE FIGHTERS OF MIAMI BEACH INTERNATIONAL ASSOCIATION OF FIRE FIGHTERS, LOCAL 1510, AFL-CIO-CLC (herein called the "Union"). SCOPE It is the intention of this Agreement to provide for salaries, fringe benefits, and other terms and conditions of employment. It is further the intention of this Agreement to prevent interruption of work and interference with the efficient operation of the City and to provide for an orderly, prompt and just manner in handling grievances. Within the context of this Agreement, the use of masculine-gender terms shall be considered gender-neutral and are freely interchangeable with the corresponding female-gender terms. IAFF - 7 ARTICLE Recognition The City recognizes the Union as the sole and exclusive bargaining representative for the purpose of negotiations over wages, hours, and other terms and conditions of employment for the following classifications in the Fire Department: Firefighter I Firefighter II, Fire Lieutenant, Fire Captain, and all probationary employees serving in these classifications. All other employees in other present classifications, including Fire Chief, Assistant Chief, Division Chief, Battalion Chief and any other classifications established by the City, are excluded. IAFF - 8 ARTICLE 2 DEDUCTION OF UNION DUES 2.1. Checkoff. Upon receipt of a lawfully executed written authorization from an employee, which is presented to the City by an official designated by the Union in writing, the City agrees during the term of this Agreement to deduct the uniform biweekly Union dues of such employees from their pay and remit such deductions to the Union Treasurer, together with a list of the employees for whom deductions were made; provided, however, that such authorization is revocable at the employee's will upon thirty (30) days written notice to the City and the Union. The Union will notify the City in writing of the exact amount of such uniform membership dues to be deducted. The Union will notify the City in writing thirty (30) days prior to any change in its dues structure. In January of each year of this Agreement, the Union will remit to the City$400.00 as an administrative fee for the collection of dues by the City. 2.2. Indemnification. The Union agrees to indemnify and hold the City harmless against any and all claims, suits, orders, or judgments brought or issued against the City as a result of any action taken or not taken by the City under the provisions of this Article. IAFF - 9 ARTICLE 3 GRIEVANCE PROCEDURE 3.1. Definition of Grievance and Time Limit for Filing. A grievance is a dispute involving the interpretation or application of the express terms of this Agreement, excluding matters not covered by this Agreement; or where Personnel Board rules and regulations are involved; provided that disciplinary actions, including discharges, may be grieved under this Article, as provided herein. See Section 3.4 (Election of Remedies) for procedures to be utilized in particular circumstances. No grievance shall be entertained or processed unless it is submitted within fifteen (15) weekdays (excluding Saturday, Sunday, or holidays recognized by the City) after the occurrence of the first event giving rise to the grievance or within fifteen (15) weekdays after the employee, through use of reasonable diligence, should have obtained knowledge of the occurrence of the first event giving rise to the grievance. 3.2. Definition of Weekday. The term "weekday", as used herein shall be defined as any day, Monday through Friday, excluding holidays, recognized by the City. 3.3. Grievance Procedure. Grievance shall be processed as follows: Step 1: Any employee who believes he/she has a grievance shall present it in writing, on the Grievance Form provided by the City, to his/her Division Chief, or other person designated for that purpose, who shall give his/her answer within six (6) weekdays after such presentation. The employee will also provide the Union with a copy of said grievance. If the City form is not available through the Division Chief's office, the time limit for filing shall be waived until such time as the form is provided to the grieving party. Step 2: If the grievance is not settled in Step 1 and the Union Grievance Committee desires to appeal, it shall be referred in writing by the Union to the Fire Chief within six (6) weekdays after the City's answer in Step 1. The Election of Remedy Form shall be completed and signed by the IAFF and/or the grievant, and attached to the Step 2 grievance. The Fire Chief, or his/her representative, IAFF - 10 shall discuss the grievance within six (6) weekdays with the Union Grievance Committee at the time designated by the City. If no settlement is reached, the Fire Chief, or his /her representative, shall give the City's written answer to the Union Grievance Committee within six (6)weekdays following their meeting. Step 3: If the grievance is not settled in Step 2 and the Union Grievance Committee desires to appeal, it shall appeal in writing to the City Manager or his/her designee for Labor Relations within six (6) weekdays after the City's answer in Step 2. A meeting between the City Manager, or his/her designee for Labor Relations, and the Union Grievance Committee shall be held within fifteen (15) weekdays. The City Manager, or his/her designee for Labor Relations, shall give the City's written answer to the Union Grievance Committee within ten (10) weekdays following the meeting. Any untimely filing of a grievance at any step will be considered withdrawn. Upon mutual agreement of the parties, grievances may be consolidated or grouped, and may also be commenced at Step 3 of the procedure. Section 3.4. Election of Remedies. Disciplinary actions may be grieved (1) under the grievance/arbitration provisions contained in this Article or (2) as set forth in Article 3.9 to a Hearing Examiner, who shall be selected by utilizing the procedure outlined in Section 3.5 of this Article. A grievance involving the interpretation or application of this Agreement may be grieved solely under the grievance/arbitration provisions contained in this Article. Grievances regarding certain non-disciplinary matters, such as disagreements as to the waiving or application of changes to personnel rules or other work rules or policies may be filed by the bargaining agent via the Personnel Board procedures. The decision of the Hearing Examiner shall be final and binding. The cost of a Hearing Examiner shall be borne by the City. Any proceedings before the Hearing Examiner shall be conducted pursuant to the attached Hearing Examiner Rules. 3.5. Binding Arbitration. If the grievance involves a difference of opinion with respect to the interpretation or application of the express terms of this Agreement and said grievance has not been settled in accordance with the foregoing procedure, the Union Grievance Committee may IAFF - 11 refer the grievance to binding arbitration within six (6) weekdays after receipt of the City's answer in Step 3. The parties shall attempt to agree upon an arbitrator within six (6) weekdays after receipt of notice of referral and, in the event the parties are unable to agree upon an arbitrator within said six (6) weekday period, the parties shall immediately jointly request the Federal Mediation and Conciliation Service to submit a panel of five (5) arbitrators. Both the City and the Union shall have the right to strike two (2) names from the panel. The party requesting arbitration shall strike the first two names; and the other party shall then strike two names. The remaining person shall be the arbitrator. The arbitrator shall be notified of his/her selection within six (6)weekdays by a joint letter from the City and the Union requesting that he set a time and place for the hearing, subject to the availability of the City and Union representatives. 3.6. Authority of Arbitrator. The arbitrator shall have no right to amend, modify, ignore, add to, or subtract from the provisions of this Agreement. He shall consider and decide only the specific issue submitted to him in writing by the City and the Union, and shall have no authority to make a decision on any other issue not so submitted to him. The arbitrator shall submit in writing his/her decision within thirty (30) days following close of the hearing or the submission of briefs by the parties, whichever is later, provided that the parties may mutually agree in writing to extend such limitation. The decision shall be based solely upon his/her interpretation of the meaning or application of the express terms of this Agreement to the facts of the grievance presented. If the arbitrator acts in accordance with this section, the decision of the arbitrator shall be final and binding. 3.7. Expenses. All costs of arbitration, including the arbitrator's fees and expenses, shall be divided equally between the City and the Union provided, however, that each party shall be responsible for compensating its own representatives or witnesses. Either party desiring a copy of the transcript shall bear the cost of same. 3.8. Processing Grievance. All grievance discussions and investigations shall take place in a manner which does not interfere with the operation of the Fire Department. Any time spent by the Grievance Committee of the Union in discussions or processing grievances at Step 1, 2 or 3 during their working hours, shall not result in loss of earnings or benefits. IAFF - 12 3.9. Suspensions, Reductions in Pay or Class, or Removal. Any dispute concerning an employee who has completed his/her probationary period, and who is suspended, reduced in pay, or classification, or removed, shall be processed through the Hearing Examiner procedure governing such appeals, or under this contractual grievance procedure upon the election of the employee within ten (10) days of the event giving rise to the dispute. An election of one procedure shall foreclose any resort to the other procedure. If the employee elects to utilize this contractual grievance procedure, it shall commence at Step 3. 3.10. Probationary Period. Nothing herein shall in any way affect the discretion presently accorded the Fire Chief with respect to employees in their probationary period following hire, or in their probationary period following promotion. It is specifically understood by the parties that the exercise of the Fire Chief's discretion in this regard shall not in any way be subject to the grievance procedure set forth herein. i 3.11. Union Grievance Committee. The Union shall appoint a Grievance Committee of not more than three (3) members, and shall notify in writing the Fire Chief and the City Manager's designee for Labor Relations of the name or names of the employee or employees serving on his committee, and of any changes in the members of the committee. The members of this committee may not conduct any investigation while on duty without receiving the permission of the Fire Chief; however, such permission shall not unreasonably be withheld. 3.12. Waiver of Time Limitations. The parties may mutually agree in writing to extend any of the time limitations set forth above for the processing of grievances. IAFF - 13 ARTICLE 4 NO STRIKE AND NO LOCKOUT 4.1. No Strike. The parties hereby recognize the provisions of Chapter 447 of the Florida Statutes which define strikes, prohibit strikes, and establish penalties in the case of a strike and incorporate those statutory provisions herein by reference. The parties further agree that the City shall have the right to discharge or otherwise discipline any employee(s)who engage(s) in any activity defined in Section 447.203(6) of the Florida Statutes, at its discretion, provided that an employee may grieve and have arbitrated the question of whether or not he engaged in the prohibited conduct. 4.2. No Lockout. The City will not lock out any employees during the term of this Agreement as a result of a labor dispute with the Union. IAFF - 14 i I I j ARTICLE 5 MANAGEMENT RIGHTS It is recognized that, except as stated herein, the City shall retain whatever rights and authority are necessary for it to operate and direct the affairs of the City and the Fire Department in all of its various aspects, including, but not limited to, the right to direct the working forces; to plan, j direct, and control all the operations and services of the Fire Department; to determine or i change the methods, means, organization, and personnel by which such operations and I services are to be conducted; to assign and transfer employees; to schedule or reschedule the working hours, to hire and promote; to demote, suspend, discipline or discharge for just cause, or relieve employees due to lack of work or for other legitimate reasons, subject to the Personnel Rules of the City; to make, change, and enforce reasonable rules and regulations; to i change or eliminate existing methods, equipment or facilities; provided, however, that the i exercise of any of the above rights shall not conflict with any of the express written provisions of this Agreement. I I i i i I I I I t I I i i I i I I IAFF - 15 i i I ARTICLE 6 I GENERAL PROVISIONS 6.1. No Discrimination. In accordance with applicable federal, state, and local law, the City and the Union agree not to discriminate against any employee on the basis of any protected i classification. 6.2. Union Activity. The City and the Union agree not to interfere with the right of employees i to become or not to become members of the Union, and further, that there shall be no discrimination or coercion against any employee because of Union membership or non- membership. It is understood that the Union specifically retains any rights it has arising out of Chapter 447, Florida Statutes, with regard to its representational activities. I 6.3. Seniority List. The City shall, on March 1St of each year, prepare a seniority list by time in rank or grade of all employees covered by this Agreement and immediately thereafter post such list in each fire station. Such seniority list shall stand as posted unless an objection is reported to the Fire Chief within forty(40) calendar days after posting. 6.4. Relief at Fire. In the event of a fire or fires, or other emergencies requiring employees to work longer than their regular tour of duty, the officer in charge shall attempt to relieve these employees by the oncoming tour as soon as feasible. 6.5. Exchange of Time. The Fire Chief, or designee may grant a request of any two (2) employees to exchange shifts if the City will not incur any overtime costs as a result thereof. 6.6. Protection of City Property and Equipment. It shall be the responsibility of any employee having custody of any equipment and property to see that it is properly cared for, kept clean, and returned to its place of storage. The City agrees to provide designated areas for the storage of bunker gear. 6.7. Uniforms. The City agrees to provide the following uniforms annually as its expense for the employees covered by this Agreement: i IAFF - 16 i I I For Combat Division: one (1) dress uniform; three (3) sets of work uniforms; one (1) pair footwear (dress shoes, or boots; employee's choice); two (2) jumpsuits; one (1) i work belt; four(4) t-shirts. i For Rescue Division: one dress uniform; three (3) jumpsuits; two (2) sets of work uniforms; one (1) pair of footwear (dress shoes, boots; employee's choice); one (1) work belt; four(4)t-shirts. For both Divisions: every three (3) years the City shall provide jacket. The City shall supply one (1) radio holster per radio and shall replace on an as needed basis. All employees working on day shift shall receive a combination of uniforms as selected I by the employee not to exceed the value provide to that of a Rescue Division employee. All uniformed employees covered by this agreement shall receive $50.00 per month for uniform cleaning and maintenance. 6.8. Meetings between Parties. At the reasonable request of either party, the Union President, or his/her representative, and the City Manager, or his/her designee for Labor Relations, shall meet at a mutually agreed to time and place to discuss matters of mutual concern. 6.9. Union Time Bank. The IAFF and its designees or other members g e of the Executive board as determined by the President, shall have the right to conduct union business (under the conditions described in this Section), through the use of a time bank. For each fiscal year, the union time bank shall be 500 hours with the Union President detached. If the Union President elects not to be full time detached then the Union time bank will be 2,996 hours total, covering the contract period October 1, through September 30. The Union President shall be assigned to the Support Services Division. On an annual basis, at j the time of bid, he or she shall make an election to either: (1) be detached full time; or(2) not to be detached and bid an assignment according to seniority. Effective June 1, 2012, the Union President shall not be counted against minimum staffing for staffing purposes. In addition, for IAFF - 17 i j promotional purposes the Union President shall not be counted against the Table of Organization. Unused Union time bank hours, not more than a maximum of 500 hours, shall be rolled over from one contract year to the next. Effective October 1, 2013, the maximum amount of unused Union time bank hours that may be rolled over from one contract year to the next shall be increased to from 500 to 750 hours. Use of the time bank shall be limited to the IAFF Executive Board (any exceptions to this may be granted by the Fire Chief or his/her designee provided that the request shall not be unreasonably denied). No more than two (2) employees per shift may be granted union time bank leave at any one time. The President of the IAFF j shall provide a minimum of twenty-four (24) hours notice to the Fire Chief for any leave to be granted. Time for attendance at negotiations for a successor agreement is addressed in Article 7.10 of this Agreement. In addition, administrative time which has been provided in the past (as determined by the Fire Chief), to the President, other members of the Executive Board or other IAFF members, shall to provided for attendance at two (2) mutually agreed upon conferences each year of this agreement and such events shall not be included in the union leave time bank. All other union convention time other than these two conferences shall be part of the union time bank. 6.10. Line of Duty Injuries. The City agrees that the program for payment of medical and hospitalization expenses incurred as a result of injuries in the line of duty, which is currently in effect as set forth in Section 6.15 of this agreement shall be continued. 6.11. Change in Shifts. The City agrees to give employees covered by this Agreement notice prior to any change in shifts, such notice to be at least seven (7) days prior to the change unless circumstances do not permit. 6.12. Fire and Rescue Off Duty Services. It is recognized that members of the bargaining i unit are offered the opportunity from time to time to perform services utilizing their expertise j and training for the benefit of private persons or entities, or public organizations or entities other than the City of Miami Beach. In such cases, the rate for the performance of these off- duty jobs shall be at a uniform hourly rate established by the Fire Chief in consultation with the President of the Union. The parties recognize and agree that the performance of these off-duty jobs or details do not constitute employment by the City of Miami Beach and that payment for these services will be made by and is the responsibility of, the other employer. Performance of this work shall be on a voluntary basis and there shall be lists of persons who wish to volunteer i established on a basis which is mutually agreeable to the Chief and the President of the Union. IAFF - 18 I I I Pay for off-duty services is pensionable subject to the cap provisions set forth in Section 7.24. Off-duty hours worked do not count as hours worked for purposes of computing overtime. 6.13. Promotional Examinations and Appointments. A. Upon ratification, all current Fire Captain and Fire Lieutenant promotional lists shall expire on February 28, 2015. All future promotional lists shall remain active for a period of thirty (30) months, effective with the March 1, 2015 lists, from the effective date of each list. Promotional examinations for the position of Fire Captain and Fire Lieutenant will be given at least once every thirty (30) months, in such fashion as to provide continuously active promotional lists. The City agrees to begin the process no later than nine (9) months prior to expiration of the lists. In the event that a promotional I examination is delayed, the eligible candidate for that examination shall be those candidates who would have been eligible had the examination been administered in proper sequence. The promotional list developed from a delayed promotional examination shall be retroactive to the date of the expiration of the previous promotional list and shall expire thirty(30) months from the retroactive effective date. I B. In the absence of an active promotional list, if there is a budgeted promotional vacancy that the City intends to fill, the City will temporarily fill the budgeted vacancy through temporary assignments. Personnel used to fill budgeted vacancies through temporary appointments shall be selected from the expired promotional list, shall be assigned for a period not to exceed ninety (90) days, and shall receive all appropriate wages and benefits afforded the position for the duration of their temporary assignment. Except in cases of exigent circumstances (i.e. hurricanes or other acts of God and delay of process by other parties), where it is clear that through no fault of its own the City fails I to provide a promotional examination and eligibility list at the time of expiration of the prior list, any promotional appointments to vacancies created during the period when no eligibility list existed shall be retroactive back to the date of the vacancy. The City shall provide retroactive compensation and seniority to those individuals who are so appointed. However, in cases where a vacancy occurs and the current eligibility list has been exhausted with no eligible candidates remaining to be appointed to a vacancy, the promotion, compensation and seniority of an eligible candidate off the new promotional IAFF - 19 i i i list shall be retroactive back to the first day following the expiration of the previous list, subject to the conditions above. C. A list of authoritative sources from which technical knowledge for the behavioral assessment component and the written test questions will be compiled by a Book Committee consisting of the Human Resources Director, Fire Chief, the Union President and the test developer or their designees, along with two incumbents, one i designated by the Fire Chief and one designated by the union president. Without exception, no member of the Book Committee shall be a candidate for the promotional examination for which the list is compiled. These committee members will be i responsible for the authoritative sources for Fire Lieutenant and Fire Captain promotional processes. It is the intent of the City and Union that all sections of the promotional processes will be complete with standing lists ready to post upon expiration of the current three (3) year lists. At least ninety (90) days prior to the scheduled date of the written promotional examination; a final notice will be posted containing a list of authoritative sources from which the technical knowledge, for the behavioral i assessment component and the written test questions will be drawn. The technical knowledge for the behavioral assessment component shall be based on written standard operating procedures (SOP)/ standard operating guidelines (SOG) that are job related and rank specific selected by the established Book Committee and/or agreed upon authoritative sources. D. Candidates meeting the time in grade service requirements on the date the register expires are eligible to apply to take the promotional examination for their next higher rank. All Firefighter I's who on the date the register expires have five (5) years of seniority from their date of appointment to Firefighter I, are State certified paramedics, and have performance evaluations of satisfactory or above for the preceding twenty- ! four (24) month period shall be eligible to take the Fire Lieutenant test. All Fire Lieutenants who on the date the register expires have three (3) years regular status from their date of appointment as Fire Lieutenant and have performance evaluations of i satisfactory or above for the preceding twenty-four (24) month period shall be eligible to take the Fire Captain's test. For the Fire Captain and Fire Lieutenant promotional i process, an Associate's degree or equivalent in Fire Science, Fire/Business/Public Administration, or a closely related area from an accredited college or university may IAFF - 20 I i I i substitute for one (1) year of experience (five (5) semester credits equals one (1) month experience). Coursework meeting the State Fire Marshall's requirements for the "Firefighter Supplemental Compensation Program" (Florida Statutes 633.382) will be acceptable. All applicants must have a valid Florida driver's license. Applicants must, in all cases, apply on or before the application cutoff date and time in accordance with Personnel Rules. E. There shall be at least two (2) post-test review/scoring sessions conducted on separate days and occurring within fourteen (14) calendar days of the administration of the written examination. Each examinee will review their results when off duty, and will be able to review a copy of his own answer sheet and the scoring key (for use only during the review session) containing the correct response, the name of the reading source i and the location from which each test question was drawn. Challenges will be written i i and submitted to the test developer during the post-test review sessions. The test developer, the City's Manager's designee for Human Resources and the Union President or his designee shall conclusively decide all challenges by a majority vote. Upon completion of the determination of a score for the behavioral assessment component of the examination, each examinee shall be furnished with their result. Each examinee may review his behavioral assessment component of the examination at a post-test review session for a time period of twice the duration of the behavioral assessment component of the examination. Each examinee will review their results when off duty. Challenges regarding the behavioral assessment component must be me in writing and submitted to the test developer either during the post-test review session, or at an optional challenge session scheduled within ninety-six (96) hours of I the post-test review session. There will be no review of the behavioral assessment component during the optional challenge session. However, an applicant can review their individual behavioral assessment component during the post-test review and i submit challenges during the optional session. Applicants may not take any written I notes or test materials from the post test review. The test developer, the City i Manager's designee for Human Resources and the Union President or his designee shall conclusively decide all challenges by a majority vote. For each examinee who submitted a challenge, each examinee's own challenge and response will be available t no later than eight (8)weeks after the date of the optional challenge session. IAFF - 21 i I F. For written promotional examinations for Fire Lieutenant, and Fire Captain, the raw passing score will be seventy percent (70%) after all challenges have been resolved by the test developer. Assessment components will be used for promotions to Fire Lieutenant and Fire Captain. After consultation with the Union President, the City will select an independent, qualified service provider to furnish and administer validated behavioral assessment components that are mutually agreeable to the parties. The it City will offer behavioral assessment component preparation, orientation, and overview j to all qualified applicants. The written examination given for Fire Lieutenant and Fire i Captain will constitute fifty percent (50%) and the behavioral assessment components i will constitute fifty percent (50%) of the examinee's combined score. Promotional test results will be expressed as percentage points. For Fire Lieutenant and Fire Captain promotional processes, seniority and education percentage points, in accordance with the following specifications, will then be added to the combined score after the candidate has successfully passed all components for the promotional examination. Veteran's Preference points will be added (after the addition of seniority and education percentages points in accordance with state law). Fire Lieutenant/Fire Captain: i (Written Examination Raw Score *0.50) + (Behavioral Assessment Component Score *0.50 + Education points+ Seniority points + Veterans Preference Points = Final Score. o For example: a candidate achieved a 76% score on the written examination, achieved a 68% score on the behavioral assessment component, achieved the maximum points in both the education and seniority areas, and had no Veterans' Preference points. The calculation of the candidates' score would be as follows: (76 * 0.5) + (68 * 0.50) + 3.6 + 2.4 + 0 = 78.0 i PROMOTIONAL CREDIT Promotional credit shall be limited to a maximum value of six (6) points, divided between two (2) components —seniority and education. i Seniority i IAFF - 22 Seniority shall be determined using the following formula: Lieutenant: LS X 0.36 = S Captain: LS X 0.24 = S LS shall be defined as length of service with the Miami Beach Fire Department. S shall be defined as Seniority and shall be given a maximum value of 3.6 points. Education Education shall be determined using the following formula: College credit hours non-related (CCNR) x .01 = (max 1.2) College credit hours related (CCR) x .02 = (max 1.2) Associate degree in EMS or FS @ 1.2 (max 1.2) Associate degree in EMS or FS plus additional CCNR or CCR (max 2.4) Bachelor degree in EMS or FS @ 2.4 (max 2.4) Paramedic Certification @ .84 (max .84) The paramedic certification will not be counted as either technical training hours or college credit hours and will be assigned a value of .84 percentage points. College credit hours non-related (CCNR) shall be credit hours documented by transcript or other acceptable evidence from an accredited college or university not related to the degree track for a degree in Fire Science (FS) or Emergency Medical Services (EMS) as designated from an accredited college or university. College credit hours related (CCR) shall be credit hours documented by transcript or other acceptable evidence from an accredited college or university in the degree track for that college or university's Fire Science (FS) or Emergency Medical Services (EMS) degree program excluding credits earned as part of the paramedic program. College credit hour values are based on semester hours and will be pro-rated for other systems (trimesters, quarters, etc.) Associate degree in Fire Science (FS) or Emergency Medical Services (EMS) shall be a degree received from an accredited college or university with supporting transcript or other acceptable evidence. Bachelor degree in Fire Science (FS) or Emergency Medical Services (EMS) shall be a degree received from an accredited college or IAFF - 23 university with supporting transcript or other acceptable evidence. Only one degree, either associate's or bachelor's, shall count toward educational credit, however, additional credit hours may be added to the associate degree up to the maximum allowed value, with related and non-related definition as set forth above. In order to accurately reflect promotional points for all documents submitted, the City will assign mandatory individual appointments for each promotional applicant for document submission and review. The deadline for submission for all documents required to substantiate the educational promotional credit will be 5:00 p.m. fourteen (14) calendar days after the pass/fail notification is provided by Human Resources to Fire Administration. All applicants must be present during the entire document review process to confirm documents and answer questions. Applicants must submit the Promotional Credit Formula (above) for each document that they would like considered. Stapled to the back of each Promotional Credit Formula must be an original or certified copy of each document the candidate would like considered. Each attachment must indicate the number of college credits the course is worth. The applicant may verify hours by a) indication on a certified transcript, b) indication on the certified copy of the certificate or c) an official letter from the institution stating the hours. If the hours are not indicated in one of these ways, the certificate will not be included for any point calculation. All documents must also include the course title, and the date the course was completed. Credit hours may not be counted twice. Therefore, classes that were counted towards a degree may not be used again as either technical or college credit hours. A promotional list for each promotional process will then be created listing examinees in descending numerical order of final score including any education, seniority or Veterans' Preference calculations. The Fire Chief will appoint from these promotional lists. Skip-overs may result from an examinee being rated unsatisfactory in two (2) or more evaluations within the last twenty-four(24) months; being issued three (3) or more written reprimands/suspensions within the last twenty-four (24) months; serving under a Last Chance Agreement; or being physically/mentally unqualified to perform the essential functions of the position. IAFF - 24 Promotions shall be made by rank order provided that the ranking examinee's documented performance and/or discipline history are not significantly inferior to that of the next ranking candidate. The IAFF shall facilitate participation of bargaining unit employees in providing information in order to conduct the job analyses and develop the tests within the time frames requested by the process; provided that such participation shall be on duty time. The parties agree to review the formula for promotional credit and to implement such revisions as the parties may agree upon in writing. 6.14. Light Duty Assignments. If an employee is temporarily unable to perform the essential functions of the employee's job classification due to a non-job related injury/illness, he may make a written request to the Fire Chief for a light duty assignment. The Chief shall determine if there are any necessary functions which could be preferred by a light duty employee. If there are such opportunities, the Chief shall inform the employee in writing of any light duty assignments and the physical capabilities required for their performance. The employee shall present this light duty assignment information to his/her treating physician and obtain, at his/her expense, a written evaluation of his/her capacity to perform the functions of the assignment. The medical evaluation must be in sufficient detail to satisfy the Chief. The Chief reserves the right to a second opinion from a City- appointed physician. The establishment, duration, work hours, and content of light duty assignments are at the sole discretion of the Fire Chief and may be modified or ended at any time. 6.15. Injury Service Connected (ISC). For two (2) sixteen (16) week periods, the City agrees to compensate any member of the bargaining unit with the difference between the weekly disability Workers' Compensation benefit received or which the employee is entitled to receive, and his/her regular rate of pay for any time lost from work due to a service-connected injury. "Service-connected injuries" shall be defined as injuries sustained under the following circumstances: a) while on duty and entitled to be paid by the City; or IAFF - 25 b) while reasonably exercising Firefighter functions within the City limits of Miami Beach while off duty; or while working a departmentally sanctioned off-duty job; or c) while exercising Firefighter functions when there is a physical danger to a person and the employee takes reasonable action off duty in Miami Dade County, Monroe County, Broward County, or Palm Beach County, excluding any injury incurred while performing duties as a member of any other fire or emergency service; or d) when operating a City vehicle, being duly authorized to do so by the City; or while on a reasonably direct travel route to or from work and home in their private vehicle while within the City limits; or e) while participating in organized fire service training that is approved in writing by the Fire Chief after consultation with the City Manager's designee for Risk Management. In the circumstances described above (sub-paragraphs a through e), the City agrees that it is and will consider itself the employer and the employee the City's employee. After the advice and comments of the Fire Chief and the IAFF President, the City Manager, at his/her sole discretion, may extend the above described ISC payments beyond thirty-two (32) weeks. This decision is not subject to grievance or arbitration. The approvals for receipt of this compensation as presently required shall be continued. The Union and the City agree to meet to discuss options and alternatives to the current ISC practices to cure abuses (if found), and ensure streamlined and efficient provision, administration, and use of ISC. 6.16. Jury Duty. Bargaining unit personnel who are summoned to jury duty shall be covered by the following: a) Personnel who are released from jury duty and who are not require to return for jury duty the following day will be required to report to work and complete the remainder of their assigned tour of duty. b) Personnel who are required to return to a jury pool or to jury duty on the date following their scheduled shift will be allowed to take off the second half of their IAFF - 26 assigned shift (8:00 p.m. to 8:00 a.m.) without being charged to annual leave or sick leave time. If the employee is released from jury duty before 5:00 p.m., he/she is required to return to his/her regularly scheduled shift. 6.17. Reduction in Work Force. For the term of this Agreement, there shall be no layoffs or demotions of bargaining unit members except for disciplinary demotions, suspensions, or terminations, which are not included for the purposes of no layoffs or demotions. 6.18. Infectious Disease Presumption. Any condition or impairment of health caused by Human Immunodeficiency Virus/Acquired Immune Deficiency Syndrome (HIV/AIDS), Hepatitis, Pulmonary Tuberculosis or Meningococcal Meningitis shall be presumed to have been accidental and to have been suffered in the line of duty unless the contrary be shown by competent evidence. The City will maintain a confidential list of employees who have taken the required medical examinations. Employees will be added to the City's confidential list subject to the following conditions: a. New hires shall acquire the presumption entitlement after completing a pre- employment or post conditional offer of employment medical exam that tests for and fails to reveal any evidence of AIDS, Hepatitis, Pulmonary Tuberculosis, or Meningococcal Meningitis. b. Employees who refuse to take the pre-employment or post-offer testing related to presumptions mentioned in this Section shall not be eligible for the presumptions. 6.19. Seniority Bid System. It is understood by the parties that the current bid system in effect at the ratification of this agreement shall remain in effect. Any change to the bid system will be agreed upon through the Labor Management process. 6.20. Minimum Staffing. It is agreed that the staffing of the Department shall be in accordance with the minimum staffing ordinance of the City which may be amended from time to time in the City's discretion, subject to the Union's right to request impact bargaining as provided under Article 13 of this agreement. IAFF - 27 i ARTICLE 7 WAGES AND FRINGE BENEFITS 7.1. Wage Increases. a. Effective with the first pay period ending in October of 2012, there shall be no across-the-board wage increase. b. Effective with the first pay period ending in October of 2013, there shall be no across-the-board wage increase. c. Effective with the first pay period ending in October of 2014, there shall be an across-the-board wage increase of three percent (3%). d. Merit and longevity increases shall become effective on the payroll period commencing nearest the effective date, provided that the employee's performance has been rated as satisfactory for the prior year. 7.2. Suppression Division. One (1) Firefighter I or Firefighter II, also certified as an Air Room Technician, per shift (for a total of three (3) employees), shall be assigned to the Suppression Division. The three (3) employees assigned as Air Room Technicians shall receive 2.5% Air Room Technician incentive pay. Effective on or after February 1, 2012, with the bid change, in addition to the Firefighter I (DE) regularly assigned driver to Station 2, there shall be one additional Firefighter I (DE) certified as an Air Room Technician assigned to Station 2 per twenty-four (24) hour shift, for a total of three (3) employees. Each one of the three (3) twenty-four (24)_hour shift employees shall be assigned to the Support Services Division (1240), and also be entitled to the five percent (5%) driver/engineer incentive pay. 7.3. Assi nment Pay. Any employee assigned outs i de o f 1210 (Suppression Division) will received 10% assignment pay. The only exception to this will be twenty four hour (24 hour) shift officers (i.e., Lieutenants and Captains) assigned to the Rescue Division (1220), who shall receive five percent(5%) assignment pay effective September 30, 2012. 7.4. Paramedic and EMT Pay. Employees who hold a Paramedic certificate shall receive a ten percent (10%) supplemental calculated on their base pay. Employees IAFF - 28 who hold an EMT certification shall receive a one and one half percent (1.5%) supplemental calculated on their base pay. Employees shall not receive pay supplements for both EMT and Paramedic certifications. 7.5. Certification Pay. In addition to "assignment pay" stated in Section 7.3, and Paramedic/EMT pay stated in Section 7.4, the following divisions will provide certification pay: A. Fire Prevention Division: 1) Employee shall receive an additional five percent (5%) supplement upon receipt of a State Fire Inspector Certificate and shall continue to receive such supplement until the Certificate expires, regardless of his/her divisional assignments. Employees shall remain solely responsible for maintaining a State Fire Inspector Certificate, unless assigned to the Division. Such costs involved in maintaining a State Fire Inspector Certificate shall remain the responsibility of the employee. 2) In order to bid into the Fire Prevention Bureau, employee must possess a current State Fire Inspector certification. B. Support Services Division: Employees shall receive an additional two and one-half percent (2'/2%) supplement upon receipt of a State Fire Instructor Certificate and shall continue to receive such supplement until the Certificate expires, regardless of his/her divisional assignment. Employees shall remain solely responsible for obtaining and maintaining a State Fire Instructor Certificate, unless assigned to the Division. Such costs involved in obtaining and/or maintaining a State Fire Instructor Certificate shall remain responsibility of the employee. 7.6. Paramedic Training. For the purpose of this program, the focus will be on bargaining unit personnel who were hired on or after March 30, 1987. Seniority in rank will be the initial factor used to determine selection of students that will be allowed to apply to Miami-Dade College or other designated educational institution for acceptance into their paramedic program. The department will allow a minimum of two (2) bargaining unit personnel to enroll in IAFF - 29 the program each year. However, this number may be increased at the sole discretion of the Fire Chief, based upon staffing requirements, budget, class availability, etc. The Fire Chief will also determine the appropriate number of bargaining unit employees within each rank that will be considered for enrollment. The City will pay for the paramedic course, lab fees, required textbooks, and related medical exam and vaccinations. Prior to the beginning of the school semester, bargaining unit personnel who have been accepted into the program will be transferred to a shift that allows them the opportunity to attend required classes on duty. This attendance will be governed by policies developed by the Fire Chief, including but not limited to, dress code, travel time, schedules, etc. The Fire Department shall not be responsible for additional on-duty time or expenses for bargaining unit personnel who are required to repeat portions of the paramedic course for graduation. Bargaining unit personnel eligible for participation in this program will be allowed to submit a written request for a one-time deferment upon notification by the Fire Chief that they are being processed for the next available class. Any requests for deferment must be directed to and received by the Fire Chief within fifteen (15) days from the date of notification to ensure that there will be an adequate number of students available for entry into this program. An employee granted a deferment will not be considered eligible for participation for a period of one (1) year from the date of deferment, at which time he/she will be required to make application to Miami-Dade College or other designated educational institution for acceptance into the next available Paramedic Training Program. While attending paramedic school, bargaining unit personnel will not be permanently assigned to any division that would require payment above base salary. For example, personnel will not be permanently assigned to the Fire Rescue Division, Fire Prevention Division, or the Support Services Division. However, they may be assigned temporarily as the need arises. IAFF - 30 7.7. Driver Incentive Pay: a) Effective on June 1, 2011, there shall be a Driver Engineer (DE) incentive pay established. In order to be eligible for the Driver Engineer incentive pay, a Firefighter I shall successfully complete Fire Apparatus/Equipment and Fire Hydraulics/Equipment courses or similar curriculum. Those Firefighter I employees who meet these qualifications and are assigned to the Suppression Division (1210) as a Driver Engineer who bid into the Driver Engineer assignment pursuant to the annual bid process shall receive a five percent (5%) Driver Engineer incentive pay. b) Effective September 30, 2012, any Firefighter I assigned to the Rescue Division (1220) shall receive a three percent (3%) driver incentive pay. 7.8. Work Out of Classification. When the City assigns a Firefighter I, Firefighter II, Lieutenant, or Captain to work in a higher position for more than one hour, he/she shall receive an increase of two dollars ($2.00) per hour for all hours during which the assignment continues on that shift. After the implementation set forth in Section 6.21, no Firefighter I shall be assigned to work out of class as a Fire Lieutenant on a Combat Unit unless he/she is on an active Fire Lieutenant promotional list. A Firefighter I may be assigned to work out of class as a Fire Rescue Lieutenant provided that any Firefighter I on an active Fire Lieutenant promotional list has the right of first refusal. After the implementation set forth in Section 6.21, no Firefighter I shall be assigned to work out of class as a Driver Engineer unless he/she meets the qualifications set forth in 7.7 (a). No probationary employee shall be assigned to work out of classification. 7.9. Overtime. Any member of the bargaining unit required to perform work outside of his/her normal shift shall receive pay at time-and-one-half their current hourly rate. Hourly rates shall be determined using the definitions in Article 7.16, Hours of Work. Upon implementation of the new average pay period provision for 24-hour shift personnel, all vacation and sick leave accrual rates and existing accrued amounts for IAFF - 31 24-hour shift personnel shall be revised to reflect this change (i.e. 1.5 hours for each hour). The Fire Chief will make available to the International Association of Fire Fighters, Local 1510 (IAFF) a report or the database of the overtime worked by the bargaining unit members. Such information will be furnished to the IAFF on an as needed basis. 7.10. Call-in Guarantee. A member of the bargaining unit who is called in to work outside of his/her normal shift will be guaranteed four (4) hours of pay to be computed at the rate of time-and-one-half, except when contiguous to the employee's regular schedule. If a call-in occurs on a holiday, the member will receive holiday pay for the four (4) hour guarantee and all additional hours worked on the holiday. If an employee does not perform available work as assigned, he shall not be entitled to any pay. 7.11. Holidays. The following holidays shall be granted to all members of the bargaining unit accordingly: Holidays Designated Date New Years Day January 1s' Martin Luther King, Jr. Day 3rd Monday in January President's Day 3rd Monday in February Memorial Day Last Monday in May Independence Day July 4th Labor Day 1s' Monday in September Veteran's Day November 11 th Thanksgiving Day 4th Thursday in November The Day after Thanksgiving 4th Friday in November Christmas December 25th Employee's Birthday* Three (3) Floating Holidays** * Birthday shall be twenty-four (24) hours for 24-hour shift employees and eight (8) or ten (10) hours for 8/10 hour shift employees. IAFF - 32 ** Three (3) floating holidays of ten (10) hours or eight (8) hours for 8/10 hour shift employees, and two (2) 24-hour floating holidays for 24-hour shift employees. a. Floating holidays are to be selected by the employee, subject to the Fire Chief or designee's approval, during each 26 pay period year. b. Bargaining unit members shall be eligible to use Floating Holidays and Employee Birthday after six (6) months of continuous employment with the City. c. 8/10 hour shift employees get the same holidays as other City Employees. d. Bargaining unit members shall receive holiday pay (double time) for all hours worked on holidays. Double time pay does not apply to 24-hour shift employees, except when working overtime on a Holiday. e. Any additional holidays so designated by official action of the City Commission shall be added to the above list. f. Twenty-four (24) hour shift personnel whose R day or regular day off falls on a holiday will receive pay for nine (9) hours at the employee's regular straight time rate of pay. The shift that is ending at 8 a.m. on the holiday and the shift that starts at 8 a.m. on the holiday, shall both receive nine (9) hours holiday pay at the regular straight time rate of pay. Effective April 1, 2015, the aforementioned nine (9) hours of holiday pay shall be reduced to six (6) hours of holiday pay at the regular straight time rate of pay. 7.12. Vacation Benefits. Consistent with applicable ordinances, the vacation benefits presently enjoyed by the employees covered by this Agreement shall continue for the term of this Agreement. 7.13. Negotiation Pay, The Union's Negotiation Committee, said Committee shall be composed of not more than five (5) members of the bargaining unit selected by the Union. Four (4) committee members, not more than two (2) of whom are on the same tour of duty, shall be allowed time off with pay to participate in any negotiations conducted pursuant to Chapter 447 of the Florida Statutes on any day or days on which negotiations are held during their regularly scheduled tour of duty. Employees shall not be paid for time spent in negotiations on off-duty days. The Union shall notify in writing the Fire Chief and the City Manager's designee for Labor Relations of the names of the members of the Negotiations Committee and of any changes in the members of said Committee. IAFF - 33 7.14. Sick and Vacation Leave Accrual and Maximum Payment of Termination. The present policy concerning sick leave (including the policy for payment upon termination, retirement, or death), accrued sick and vacation time combined, up to a maximum of one year's salary, shall continue for all employees hired before October 1, 1978. Effective October 1, 1978, all new employees covered by this Agreement shall, under applicable ordinances, rules and regulations, be allowed no accumulation of vacation leave, except in accordance with provision for postponement of vacation leave as set forth in Article 7, Section 7.10, of this Agreement; be permitted to transfer sick leave in excess of 360 hours to vacation leave at the rate of two days sick leave to one day vacation leave to be used in the pay period year when transferred. The Must Use Cap on vacation accrual is 460 hours (690 for 24-hour shift employees). Employees shall be entitled to schedule and use at least one year's worth of their annual leave per year, if they participate in the Fire Department's vacation leave application process in a timely manner. Effective with the first pay period ending in October of 2006, the maximum amount of accrued, combined sick and vacation leave paid upon retirement, termination or death shall not exceed 820 hours for non-shift personnel and shall not exceed 1,230 hours for 24 hour day shift personnel. The value of the combined accumulated sick leave hours and vacation hours upon termination, retirement or death shall be one hundred percent (100%), up to the maximum as stated above. 7.15. Sick Leave Sell Back Program. An annual sick leave sell back program, payable on a dollar for dollar basis, has been established and implemented as stated in this section, effective October 1, 2013. The annual sick leave sell back periods shall cover each of the following fiscal years: October 1, 2013, through September 30, 2014; and October 1, 2014, through September 30, 2015. Payments for each annual sick leave sell back period will be made in the last pay period in November after the closing of the IAFF - 34 applicable sell back period. The sick leave sell back program, inclusive of all provisions stipulated in this section, shall terminate on the expiration date of this Agreement. The sick leave sell back program will allow qualified employees to sell back their annual sick leave accrual during the sell back period, minus any sick and emergency vacation leave utilized during the same period, to be reduced on an hour for hour basis. Leave utilized under the Family and Medical Leave Act (FMLA) shall not reduce the sick leave sell back amount. In order to qualify for participation in the sick leave sell back program, employees must: (1) Have been employed by the City throughout the entire sick leave sell back period being measured; and (2) Maintain at least four hundred (400) hours of combined accumulated sick and vacation leave, after each sell back date, for shift personnel, and three hundred (300) hours for non-shift personnel. The sick leave hours sold back as part of this program cannot cause the employee's accumulated sick and vacation leave to descend below the aforementioned minimum established thresholds. 7.16. Hours of Work. a. The average pay period for twenty-four (24) hour shift personnel covered by this agreement will be 96 hours in a 14 day period and the three (3) shift (A,B,C) schedule of twenty four (24) hours on duty and forty eight (48) hours off duty shall continue for the duration of this agreement. Every seventh shift, currently known as an R-day, shall be a day off so as to comply with the average pay period described above. b. The average pay period for 8/10 hour shift personnel covered by this agreement shall be eighty (80) hours in a fourteen (14) day period, with scheduled shifts consisting of eight (8) ten (10) hour or ten (10) eight (8) hour days per pay period. 8/10 hour shift personnel shall not be eligible to receive or accrue R- days. 7.17. Health Trust Contributions: For Calendar Year 2013, the City's monthly contributions are: IAFF - 35 Single: $ 482.92 ($ 464.38 Medical + $17.54 Dental) Emp. + 1: $1,174.15 ($1,139.95 Medical + $34.20 Dental) Family: $1,191.80 ($1,139.95 Medical + $51.85 Dental) On a monthly basis, the City will be provided with the actual premium cost to the Florida Firefighters Insurance Trust Fund (herein after referred to as TRUST) as determined by its qualified consultant with those supporting documents reflecting the TRUST'S costs per participant. This actual cost shall include all liabilities of the TRUST inclusive of administrative fees, claims costs, reserves and stop loss not to exceed the maximum expense to the TRUST and supporting this annual percentage increase. The City's annual calendar year contribution will be based on a true-up process as described below. (It is understood and agreed that the numbers used in the foregoing examples are fictional and for illustrative purposes only.) Example#11: Trust's actual calendar year percentage premium increase is less than the City's actual contribution —a refund is calculated: If the City's actual monthly contribution exceeds the TRUST'S monthly premium contribution, then the difference shall be recorded and refunded to the City by reducing the City's first following calendar year premium payment to the TRUST by the total amount of the dollars to be refunded. This refund will be based on the dollars determined each month. In addition, the City's base premium rate will be adjusted to reflect this annual percentage decrease in cost. The City's premium rate for December of the preceding calendar year will be adjusted to reflect this percentage decrease in premium cost and then the City's current straight line average increase will be added to this base premium. 1. City's monthly contribution for calendar year 2006 = $100,000/month 2. City's monthly contribution for calendar year 2007 = $106,000 (2006 average straight line increase 6%) 3. Trust's actual monthly premium for calendar year 2007 = $104,950.50 (this is 1% less than #2) IAFF - 36 4. Therefore, the City overpaid the Trust by $1,049.50 each month, which means the City would receive a credit of $12,594 ($1,049.50 x 12) to be taken off of the first premium contribution in 2008. 5. The City's straight line average for 2008 has been set at 6%. 6. Before adding this new straight line average of 2008, the current monthly contribution will need to be adjusted to reflect the true costs of 2007 (Dec 06 base premium + 5% (The true increase for TRUST in 2007)). This establishes the new base premium for 2007. 7. Therefore, the City's monthly contribution for 2008 would be $105,000 (2007 adjusted premium) x 6% (2008 straight line average)) = $111,300 Example #2: If the payments made by the City to the TRUST do not exceed the actual increase for prior year, then there will be no reduction made in the current year. Trust's actual calendar year percentage premium increase is greater than the City's actual contribution — no refund is calculated: 1. City's monthly contribution for calendar year 2006 = $100,000/month 2. City's monthly contribution for calendar year 2007 = $106,000 (2006 average straight line increase 6%) 3. Trust's actual monthly premium for calendar year 2007 = $110,000 (this is more . than the City's actual payment) 4. Therefore, the Trust's premium was more than the City's actual contribution for 2007. No credit is due to the City and there will be no monies deducted from the first premium in 2008. 5. There will be no reduction to the City's current monthly contribution. 6. The City's straight line average for 2008 has been set at 6%. 7. The 2008 rate will then be determined as follows: $106,000 (2007 rate) x 6% (2008 straight line average)) = $112,360 Example #3: If the payments made by the City to the TRUST are equal to the actual increase to the TRUST for the prior year, then there will be no reduction made in the current year. IAFF - 37 Trust's actual calendar year percentage premium increase is equal to the City's actual contribution — no refund is calculated: 1. City's monthly contribution for calendar year 2006 = $100,000 month 2. City's monthly contribution for calendar year 2007 = $106,000 (2006 average straight line increase 6%) 3. Trust's actual monthly premium for calendar year 2007 = $106,000 4. Therefore, the Trust's premium was equal to the City's actual contribution for 2007, no credit is due to the City and there will be no monies deducted from the first premium in 2008. 5. There will be no reduction to the City's current monthly contribution. 6. The City's straight line average for 2008 has be set at 6% 7. The 2008 rate will then be determined as follows: $106,000 (2007 rate) x 6% (2008 straight line average) = $112,360 If the City's renewal rate if flat, or a negative percent, then there will be no change made to the City's annual calendar year contribution to the TRUST. The City's contribution 'amount will help fund the level of benefits provided by the current plan as of the date this contract is signed* and will help fund the level of benefits provided by the TRUST not to exceed the maximum expense to the TRUST for said benefits. If plan design changes cause an increase in the TRUST'S monthly premium, the City is not required to increase its contribution as a result of the plan design change. The City shall be notified in writing of all plan design changes within thirty (30) days of the effective date of any proposed change. Deadlines: a. First Week of Each Calendar Month: Monthly premium billing reports shall be provided from the TRUST to the City Manager's designee for Labor Relations and Human Resources/Benefits Administration no later than the 1" week of each calendar month the premium is due. This premium IAFF - 38 i billing report shall reflect the monthly premium costs based on the claims experience and administrative costs of the TRUST as determined by its qualified consultant and documents reflecting the TRUST'S costs per participant per month for administrative fees, claims costs, stop loss and reserves supporting the annual percent increase, and shall be broken down by average for that month per participant. b. In addition, the City of Miami Beach Firefighters Insurance Trust Fund shall provide the financial statements from the TRUST CPA reflecting Miami Beach's actual premium contributions for the prior calendar year to the City Manager's designees for Labor Relations and Human Resources/Benefits Administration. Audited financial reports will be provided as soon as available each calendar year. c. The City Manager's designee for Labor Relations will provide the final renewal rates to the Miami Beach Firefighters Insurance Fund prior to the beginning of the new plan year. d. The City's designees for Labor Relations and Human Resources/Benefits Administration will be notified of the annual meeting at which benefit changes are under consideration and the City shall be allowed to send representatives to that meeting. Also, any consulting reports analyzing benefit changes will be provided to the City for the purposes of that meeting. *Upon ratification of this agreement, the parties shall supply each other with the current plan designs in effect for calendar year 2013. **The straight line average is defined as the total of the percentage increase in premium for each of the City's medical plan options divide by the number of the City's medical plan options and in the same manner for dental plans. In addition: a) For all current retirees and active employees on the payroll as of the date of ratification of this contract, all employees presently in the DROP, and all eligible dependents under the current eligibility rules, the City contribution for those current retirees and current employees who IAFF - 39 become future retirees for health coverage shall be equal to the City's Health Trust contribution formula for active employees. Furthermore, the contributions for those current retirees and current employees who become future retirees and their eligible dependents shall be no less that the current value of the contributions for active employees and their eligible dependents. This agreement shall be reduced to writing and made individual contracts and shall be vested benefit throughout retirement. b) Employees hired after the ratification of this Agreement who elect to be covered by the Firefighters Plan to the extent they choose to have medical benefits provided to them and their dependents during retirement shall receive a health insurance stipend in lieu of a City contribution to the Trust on behalf of those employees after their retirement. The stipend shall be a monthly payment equal to twenty-five dollars ($25) per month of each year of service, subject to an annual increase based on the Miami-Ft. Lauderdale all urban consumer CPI as of September 301h of each fiscal year. c) All members of the bargaining unit 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 by the Florida Firefighters Insurance Trust Fund (Firefighters Plan). Covered employees if they choose, will have the options of coverage as set forth in that Plan. Non-bargaining unit State certified firefighter employees in the Fire Department have the option of coverage under the City- provided plan or Firefighters Plan, but not both, provided they meet the TRUST's eligibility as defined in the plan document. d) All members of the bargaining unit who were members of the Union on September 1, 1986, and who retire on or after October 1, 1986, and non-bargaining unit employees who opt for the Firefighters Plan and who retire on or after October 1, 1986, shall be covered by the IAFF - 40 Firefighters Plan to the extent they choose to have medical benefits provided to them and their dependents during retirement. e) The City shall be provided with a copy of the Firefighters Plan booklet and the Trust Agreement, and any other information required by law and shall be apprised of any changes in the Trust Agreement and/or Plan benefits. f) Employees covered by this Agreement who retire, or are terminated by the City must be vested in the Police/Fire pension plan at the time of such retirement, resignation or termination in order to receive a contribution by the City towards his/her health insurance premium after such retirement, resignation or retirement. g) Employees in the bargaining unit shall be eligible to participate in the City's voluntary benefits plan, which may be modified by the City from time to time. The voluntary benefits plan shall be administered by the City. h) Effective the first pay period ending in October of 2013, all employees covered by this agreement shall contribute twenty-five dollars ($25.00) biweekly to the Post Employment Health Program (PEHP). Upon separation of employment from the City, employees covered by this agreement shall contribute ten percent (10%) of their accrued leave payouts toward the PEHP. Any and all fees/costs associated with administering the PEHP shall be incurred by the plan participants. In no event shall the City incur any costs. i) Effective upon ratification of this agreement, and for so long a period as the federal tax code imposes a heavier tax burden upon City employees with domestic partners who elect to receive family medical and dental coverage over that of their married counterparts, the City will reimburse those employees with domestic partners who pay this heavier tax burden by adding to their biweekly pay the additional amount withheld from the employees' pay and the amount of the additional tax assessed IAFF - 41 i by the federal government upon this reimbursement. Reimbursement under this subsection shall not be considered to be pensionable income. In order to qualify, eligible employees must have registered domestic partnerships in accordance with the applicable provisions of the Miami-Dade County Code of Ordinances and the City of Miami Beach Code of Ordinances. 7.18. Recertification. Time spent while off duty in classroom (including the test) or lab settings to obtain recertification in accordance with State of Florida requirements is not time worked and will not be compensated by the City. Books and tuition for such courses will be paid for by the City. Under present state recertification procedures, the City will provide a $300 paramedic recertification pay. Effective the first full pay period in October 2013, the City shall make a one-time payment of $200 to retroactively compensate eligible employees who received recertification pay during FY 2012/13. Effective the first full pay period in October 2013, paramedic recertification pay shall be increased to $500. Non-paramedic employees who are required to obtain EMT recertification shall be provided with the state required instruction while on duty. 7.19. Court Time. When an employee is required to appear in court or at a deposition by the State Attorney, public defender, or a federal agency, or is required to appear in court or at a deposition in a civil matter which involves the employee's employment with the City, (except when the employee is a Plaintiff in any litigation against the City, when the litigation involves one employee who is suing another employee, and/or when the employee is a Plaintiff or Defendant in a lawsuit where the employee is not on the same side as the City, this Section shall not apply) he/she will be paid a minimum of four (4) hours at the overtime rate if the court appearance or deposition is not contiguous to the regular duty shift. If the court appearance or deposition is contiguous to the regular duty shift, the minimum guarantee shall be two (2) hours at the overtime rate. 7.20. On-Call. Employees who are placed in an on-call status as primary respondents for periods of one month at a time will be paid $100 for each such month. Effective October 1, 2012, on-call pay shall be increased to $300 for each month the employee is on call. IAFF - 42 7.21. Shift Training Coordinator. One employee on each operating shift will be given a $300.00 annual bonus for holding and maintaining a State of Florida Fire Instructor certificate, and for performing as the shift training coordinator. This training certificate holder bonus is not pensionable for purposes of retirement calculation. 7.22. Pension Pick-Up. The City agrees subject to and in accordance with IRS code and regulation that pension contributions, although designated as employee contributions, will be paid by the employer in lieu of contributions by the employee. 7.23. Rescue Out of Class (ROC). When the City temporarily assigns an employee covered by this Agreement to work in Fire Rescue for more,than one hour he/she shall receive an additional two dollars ($2.00) per hour for all hours during which the assignment continues on that shift. 7.24. Pension. The pension benefits as they currently exist shall continue, except that the City shall amend the pension plan upon ratification of this Agreement, to provide the following benefits for plan members who retire on or after September 30, 2013 (except as otherwise specified below): A. Upon completion of five (5) years of creditable service under the pension system, members may purchase additional creditable service under the system for up to two (2) years of prior military service, up to an additional six percent (6%) multiplier, at ten percent (10%) or ten and one half percent (10.5%), whichever is applicable, of pensionable salary for each year of military service purchased, with the cost prorated for fractional years of service. For purposes of this purchase, an employee may use the value of accrued sick and/or annual leave, valued at the employee's hourly rate at the time of purchase. B. The purchase of additional service must be completed within twenty-four (24) months following a member's completion of five (5) years of creditable service under the pension plan. If a member does not complete the purchase within the twenty-four (24) month period, he/she shall not be eligible for the purchase in the future. IAFF - 43 C. Effective upon ratification of the 2009-2012 collective bargaining agreement between the City and the IAFF, all compensation for work performed pursuant to section 6.12 (off duty services) shall be included in a member's salary for pension purposes, and shall be used in the calculation of member contributions and benefits. Provided, in no event shall the value of unused sick and/or vacation time, overtime pay, and/or off-duty pay, exceed the caps presently specified in the Miami Beach Police and Fire Pension Ordinance. Effective upon ratification of this agreement, overtime in excess of 300 hours per year or payments for unused sick and and/or vacation leave may not be included in compensation for pension purposes. D. DEFERRED RETIREMENT OPTION PLAN (DROP) 1. Eligibility — Any active employee member of the Miami Beach Police and Firefighters Pension Plan may enter into the DROP on the first day of any month following the date upon which the employee first became eligible for a normal service retirement, subject to the conditions expressed herein or as modified from time to time. 2. Conditions of Eligibility — Upon becoming eligible to participate in the DROP, an employee may elect to enter that program for a period not to exceed sixty (60) months. Notwithstanding, participation may not continue beyond that date when the employee's combined years of creditable service and time in the DROP equals 408 months . Provided also that participation in DROP shall require the employee to complete and submit the following prior to start of DROP payments. a. Such forms as may be required by the Pension Board of Trustee's Plan Administrator. Election in the DROP is- irrevocable once DROP payments begin. b. A waiver and an irrevocable resignation from employment with the actual date of termination being the date designated by the employee as the IAFF -44 end of his/her DROP participation. The administration and timing of execution and delivery of the waiver and resignation forms shall meet the requirements of the Age Discrimination in Employment Act and the Older Worker's Benefits Protection Act, as same may be amended from time to time. 3. Conditions of Employment for DROP Participants — Employees shall be subject to termination of employment while in DROP to the same extent as they were in their pre-DROP status. A person who has elected the DROP remains an employee during the DROP period and receives all the benefits of being an employee during the DROP period, except any form of pension contribution. 4. Effect of DROP Participation a. An employee's credited service and his/her accrued benefit under the Pension Plan shall be determined on the date of his/her election to participate in the DROP first becomes effective. b. The employee shall not accrue any additional credited service while he/she is a participant in the DROP, or after termination of participation in the DROP. c. A DROP participant is not eligible for disability benefits from the Plan. d. An employee may participate in the DROP only once. e. Effective with the start date of an employee's DROP participation, contribution to the Pension Plan by the employee and the normal cost contribution to the Pension Plan by the City, on behalf of the employee, shall cease 5. Payments to DROP Account. A DROP account shall be created for each member who elects to participate in the DROP. A DROP account shall consist of amounts transferred to the DROP from the Plan, which include the monthly retirement benefits, including any future cost of living increases, that would have been payable had the member elected to cease employment and receive a normal retirement benefit upon commencing participation in IAFF - 45 the DROP, and earnings on those amounts. Provided, employees who enter the DROP on or after September 1, 2012, through the ratification date of this agreement, shall continue to receive a zero (0%) cost of living adjustment for the third (3 d) and fourth (4th) annual adjustment dates, regardless of whether the employee remains in the DROP for the maximum five (5) year period. Any employee who exits the DROP within six (6) months following the date of DROP entry, shall be eligible for the cost of living adjustment as otherwise provided in the current pension plan. 6. DROP Account Earnings g a. Members may direct their DROP money to any of the investment options offered and approved by the Board. Any losses incurred by the participant shall not be made up by the City or the Pension Plan. The selection of these programs shall be made by the participant on forms provided by the Board. Any and all interest and or earnings shall be credited to the participant's DROP account. b. A member's DROP account shall only be credited or debited with earnings while the member is a participant in the DROP and, depending on the DROP Account Payment Options selected, after the member dies, retires, or terminates employment with the City of Miami Beach. i 7. Payment of DROP Account Funds — Upon termination of a member's employment (for any reason, whether by retirement, resignation, discharge, disability, or death), the retirement benefits payable to the member or to the member's beneficiary shall be paid to the member's DROP account. No payments will be made from the DROP account until the member terminates employment. 8. DROP Account Payment Options — Following the termination of a participant's employment, the participant shall select one of the following options to begin to receive payment from his/her DROP account. Said selection shall occur no later than 30 days prior to the end of the DROP participation period or within 30 days following the termination of a IAFF - 46 participant's employment if said termination of employment occurs prior to the end of the DROP participation period: a. Lump Sum — All accrued DROP benefits, plus interest, shall be paid from the DROP in a single lump sum payment. b. Partial Lump Sum — A member designated portion of accrued DROP benefits, plus interest, shall be paid from the DROP in a partial lump sum payment with the remainder being directly rolled over into an eligible retirement plan. c. Direct Rollover—All accrued DROP benefits, plus interest, shall be paid from the DROP directly to the custodian of an eligible retirement plan. d. Other method(s) of payment that are in compliance with the Internal Revenue Code and adopted by the Pension Board of Trustees. 9. Death of DROP Participant — If a DROP member dies before his/her account balances are paid out in full, the participant member's designated beneficiary shall have the same rights as the member to elect and receive the pay-out options set forth in Paragraph 8, above. DROP payments to a beneficiary shall be in addition to any other retirement benefits payable to the beneficiary. 10. Administration of DROP Accounts a. The Pension Board of Trustees shall make such administrative rules as are necessary for the efficient operation of DROP, but shall neither create any rule that is inconsistent with the legislation creating the DROP, nor any rule that would be a mandatory subject of collective bargaining. IAFF - 47 b. At all times, the DROP will be administered so that the Plan remains qualified under the Internal Revenue Code and is in compliance with the Internal Revenue Code and applicable laws and regulations. 11. If any provision of this DROP should be found invalid, unlawful, or not enforceable by reason of any existing or subsequently enacted legislation, or by judicial authority, or by an IRS regulation/ruling, the City and the Union agree to meet within 30 days of such determination for the purpose of negotiating a resolution to the invalid provision(s). In the event that provisions of the Internal Revenue Code operate to limit the benefit amount of employee coverage by the pension provision incorporated in this Agreement to an amount less than set forth in the pension Plan then the City and the Union shall negotiate a method to compensate the affected employee for the difference between the normal pension benefit and the limits allowed by the Internal Revenue Code provided that no such resolution shall jeopardize the exempt status of the Plan under the Internal Revenue Code. 12. A member who elects to participate in the DROP shall retain the earned balance of accrued sick and vacation leave as of date of entry into the DROP, and shall continue to earn sick and vacation leave during the DROP period, in accordance with the stipulations set forth in the collective bargaining agreement between the City and IAFF. While in the DROP, the member shall have the one-time option of receiving payment for accrued sick and/or vacation leave, up to the maximum payout upon separation of employment allowed by the collective bargaining agreement between the City and IAFF, provided that the employee shall retain at least one hundred twenty (120) hours of accrued sick leave after such payment. The one-time election to receive payment of leave balances shall be made in any one year of the DROP, by notifying the City no later than June 30 of that year. Payment will be made after the first pay period ending October of the same year. Upon final separation from employment with the City, a member who has participated in the DROP shall be eligible to receive payment for the IAFF - 48 balance of all accrued sick and vacation leave as of the date of final separation, up to the maximum provided in the collective bargaining agreement, as reduced by the prior payout, if any. In no event shall payments for accrued sick or vacation leave be included in a member's earnings for the purposes of the plan. E. Pension benefits for employees hired prior to July 14, 2010; all changes effective September 30, 2013, unless otherwise specified: 1. The benefit multiplier shall be three percent (3%) for each year of creditable service for the first twenty (20) years of service, and four percent (4%) for each year of creditable service after twenty(20) years of creditable service. 2. The normal retirement date shall be as provided in the current pension plan, except that a member must attain the age of 47 to be eligible for"Rule of 70" retirement. 3. Effective September 30, 2015, the final average monthly earnings (FAME) shall be based on the member's three (3) highest paid years of creditable service, prior to retirement or separation from employment. 4. The retiree cost of living adjustment (COLA) shall be two and one half percent (2.5%) annually. 5. The maximum pension benefit shall be 85% of pensionable income, with the exception that any member who attains a benefit of 85% of pensionable income or higher as of September 30, 2013, retains the maximum benefit of 90% of pensionable income. 6. Vesting shall be in five (5) years. 7. Ten percent (10%) employee pension contribution. G. Pension benefits for employees hired after July 14, 2010, but prior to ratification of this collective bargaining agreement (includes new hires currently in the recruitment process); all changes effective September 30, 2013, unless otherwise specified: 1. The benefit multiplier shall be three percent (3%) for each year of creditable service for the first twenty (20) years of service, and four percent (4%) for each year of creditable service after twenty (20) years of creditable service. IAFF - 49 2. The normal retirement date shall be as provided in the current pension plan, except that a member must attain the age of 48 to be eligible for"Rule of 70" retirement. 3. The final average monthly earnings (FAME) shall be based on the Member's three (3) highest paid years of creditable service, prior to retirement or separation from employment. 4. The retiree cost of living adjustment (COLA) shall be one and one half percent (1.5%) annually. 5. The maximum pension benefit shall be 85% of pensionable income. 6. Vesting shall be in five (5) years. 7. Ten percent(10%) employee pension contribution. H. Pension benefits for employees hired after ratification of this collective bargaining agreement (excluding new hires currently in the recruitment process): 1. The benefit multiplier shall be three percent (3%) for each year of creditable service for the first twenty (20) years of service, and four percent (4%) for each year of creditable service after twenty(20) years of creditable service. 2. The normal retirement date shall be as provided in the current pension plan, except that a member must attain the age of 48 to be eligible for"Rule of 70" retirement. 3. The final average monthly earnings (FAME) shall be based on the Member's five (5) highest paid years of creditable service, prior to retirement or separation from employment. 4. The retiree cost of living adjustment (COLA) shall be one and one half percent (1.5%) annually. 5. The maximum pension benefit shall be 85% of pensionable income. 6. Vesting shall be in five (5) years. 7. Ten and one half percent (10.5%) employee pension contribution. The pension breakdowns above are for illustrative purposes and do not encompass all pension benefits afforded to respective members. The full itemization of pension benefits is available in the plan summary for the Fire and Police Pension Plan, as well as the Fire and Police Pension Ordinance. IAFF - 50 "Me Too" with the FOP. The IAFF reserves the right to a "me too" agreement with the FOP should the City modify the FOP agreement on parallel issues. Any such discussions shall not exceed a period of 90 days from the date of the first meeting, and in no event shall the discussions continue beyond the contract expiration date. 7.25. Buyback of Probationary Time. Employees hired prior to ratification of this agreement may elect, by written notice served on the Board of Trustees, to receive creditable pension service time for any or all of their time served as probationary firefighters. In order to receive such creditable pension service time, employees should be allowed to purchase any or all of such time through the use of accrued annual leave, sick leave, cash or any combination thereof. In the event such purchase is not made within six months of successful completion of probationary period, the amount paid shall include interest at the rate of three percent (3%) per annum excluding first six months. Effective upon ratification, all newly hired employees, including new hires currently in the recruitment process, shall participate in the pension plan upon date of hire. 7.26. Voting Time. Given the availability of alternatives such as absentee ballots, the past practice of allowing paid time off for voting shall be discontinued. 7.27. Commission on Fire Accreditation International Pay Supplement (CFAI). Bargaining unit members shall receive fifty dollars ($50.00) per pay period. The union agrees to work with the City in order to attain accreditation through the Commission on Fire Accreditation International. After attainment of accreditation, (CFAI) payments required herein shall be contingent upon maintenance of the accreditation provided however that payment shall continue if loss of accreditation is due to action or inaction by the City/Administration and unrelated to actions of the bargaining unit members. 7.28. Compensation Plan. a) Trainee—All non-certified hires will start at Step 1. IAFF - 51 b) All Florida certified Firefighters will start at Step 3. After 6 months at Step 3, the employee will move to Step A for the duration of their first year. c) Effective April 1, 2015, one (1) additional step, Step I, shall be added to the Firefighter I classification range. The additional step will increase the maximum of the range for the Firefighter I classification by five percent (5%). Any Firefighter I at the maximum step of the range, Step H, shall be eligible to proceed to Step I upon reaching his or her anniversary date following the effective date of this provision. 7.29. Shift Fire Investigator. Three (3) Firefighter I employees will be assigned to the Suppression Division (1210) in the position of Shift Fire Investigator. There shall be one (1) Fire Investigator per 24-hour shift for a total of three (3). To be eligible to hold the position, the Firefighter I must be a State certified Fire. Investigator II. The three (3) fire investigators will perform their normal Firefighter I shift duties, and may be dispatched solely for Fire Investigative duties. The three (3) Firefighter I Shift Fire Investigators shall maintain their 10% assignment pay as if they were still assigned to the Fire Prevention Bureau (FPB) Division (1230) and shall maintain their current take home vehicles. 7.30. Hazardous Duty Pay. Effective April 1, 2015, all employees covered by this agreement shall be eligible to receive hazardous duty pay in the amount of one hundred dollars ($100) biweekly. Hazardous duty pay shall not be considered as pensionable earnings. IAFF - 52 ARTICLE 8 JOINT OCCUPATIONAL SAFETY AND HEALTH COMMITTEE 8.1. Committee Make-up and Responsibilities. In recognition of the City's and the Union's desire to maintain the highest standards of health and safety in the Fire Rescue Department, a Joint Occupational Safety and Health Committee will be established. This committee shall consist of three (3) members of management selected by the Fire Chief, and three (3) members of the Union appointed by the Union President. a. The Committee shall recommend rules and procedures for the promotion of health and safety among Firefighters. b. The Committee shall make inspections of Fire Department facilities on a semi-annual basis or by special request. c. The Committee shall keep minutes of each meeting. d. The Committee shall meet on a regular basis at mutually agreed times. Four(4) members of the Committee shall constitute a quorum, providing that equal representation is available, at a scheduled and posted meeting. e. The Safety and Health Committee established by this Agreement shall evaluate changes in specifications for bids for protective clothing, equipment, tools, appliances, and apparatus, and shall issue its recommendations in a report to the Fire Chief. f. The Safety and Health Committee will evaluate the types of helmets, gloves, breathing apparatus, and protective clothing on a semi-annual basis. A report of this evaluation will be made to the Fire Chief. g. A separate City-Wide or Departmental Safety Committee will review and analyze all reports of accidents, deaths, injuries, and illnesses. h. The Safety and Health Committee shall review on the job accidents and injuries and make recommendations to the Fire Chief about prevention efforts and/or remediation needed. 8.2. Personal Equipment. Personnel will be issued personal equipment one time, in new condition, to be maintained in serviceable condition. If the gear is damaged IAFF - 53 or destroyed at no fault of the employee, it will be replaced by the City. If it has been damaged, destroyed, or lost due to the employee's negligence, the employee will pay for the replacement. Negligence will be determined by a majority vote of four (4) members of the Occupational Safety and Health Committee and the Fire Chief. Two (2) of the Committee members shall be Union appointees and two (2) shall be Management appointees. 8.3. Ladder Testing. The City shall pay for the inspection and testing of the structural integrity and safety of its aerial devices, using recognized test procedures by an independent test company other than the original manufacturer, at a time to be determined by management, but on no longer than a bi-annual basis. A copy of the test results will be supplied to the Safety and Health Committee. 8.4. Air Quality Evaluations. The City agrees that air quality evaluations as presently made will be made by the Dade County Health Department or other suitable testing facility on the compressed air utilized in department Self-Contained Breathing Apparatus (SCBA) and Self-Contained Underwater Breathing Apparatus (SCUBA) on a quarterly basis. 8.5. SCBA Repair. Only personnel who have been trained and certified by the manufacturer will be permitted to perform repairs or supervise the performance of repairs on Self-Contained Breathing Apparatus (SCBA). i IAFF - 54 ARTICLE 9 LEAVE OF ABSENCE 9.1. Educational Leave and Tuition Refund. Subject to applicable Personnel Rules, an employee may request an educational leave of absence without pay to take a course or courses in a field related to the work assignment of said employee. The City's tuition refund program shall be continued for the term of this Agreement. 9.2. Bereavement. Where there is a death in the immediate family (mother, father, grandparents, grandchildren, current spouse's parents, brother, sister, current spouse, children, or stepchildren) of an employee he shall be allowed two (2) days off (twenty-four (24) hours a 24-hour shift employee), for the purpose of making arrangements and/or attending the funeral, without loss of pay and without charge to accrued sick leave or vacation days of said employee. In such circumstances, additional time off may be granted by the Fire Chief or designee, and shall be chargeable to the accrued sick or vacation leave of such employee. Such additional time shall not count against the employee for the purposes of performance evaluation, or for participation in the sick leave sell back program. Requests for additional time off shall be submitted in writing to the Chief. IAFF - 55 ARTICLE 10 TRANSFER OF SERVIVES 10.1. Notice. The City agrees to keep the Union advised concerning any plans for, or implementation of, a transferal of any services presently being performed by bargaining unit members. 10.2. Discussions. The City agrees to hold discussions with representatives of the Union upon request of the Union, for the purpose of permitting the Union an opportunity to comment upon any proposed transferal of services and/or suggest alternatives to all or any portion of the plan for transferal. i IAFF - 56 ARTICLE 11 DRUG/ALCOHOL TESTING Section 11.1. Selection. In an effort to identify and eliminate on-duty or off-duty controlled substance/alcohol abuse, urinalysis/breathalyzer tests shall be administered as provided herein. Employees shall be advised of their contractual rights relative to this Article any time a urinalysis/breathalyzer alcohol test is required. Employees refusing to submit to a urinalysis/breathalyzer test under the provisions set forth herein shall be dismissed. a. Annual Screening: Effective October 1, 1998, all employees shall be required to submit to urinalysis once per calendar year. Employees shall be selected using a random selection process agreed to by the Union and the City, and shall be tested during their normal tour of duty. b. Random Screening: It is important to the safety and welfare of employees and the public that bargaining unit members not be impaired by alcohol while on duty nor use illegal drugs. The Human Resources Department will administer the drug testing program. Thirty (30) days after the contract ratification by the IAFF, employees whose sick leave bank falls below 133 hours (200 hours for shift personnel), shall be subject to the random drug test screening for 180 calendar days. The 180 calendar day period will begin with the pay period after the employee's leave balance falls below 133 hours (2000 hours for shift personnel). Effective October 1, 2007, employees whose sick leave bank falls below 200 hours (300 hours for shift personnel), shall be subject to the random drug test for 180 calendar days. The 180 calendar day period will begin with the pay period after the employee's leave balance falls below 200 hours (300 hours for shift personnel). If at any time after the 180 calendar days has expired, the employee's sick leave bank falls below the 133 hours (200 for shift personnel) (or on/after October 1, 2007, 200 hours [300 for shift personnel]), the employee shall be immediately subject to random drug testing for an additional 180 calendar day period (as described above). New hires are exempt from the IAFF - 57 random screening provisions until they have been employed for a total of thirty- six months. After thirty-six months from the date of hire, all provisions will apply. c. Reasonable Belief Screening: Employees may be tested under the following criteria: 1. When a Division Chief or above has reasonable belief, based on objective factors that the employee has possession of, or is using, dispensing, or selling any illegal drug or controlled substance which is not prescribed by a licensed physician. 2. When a Division Chief or above has reasonable belief based on objective factors that the employee is under the influence of alcohol on duty, or on an off-duty detail, or traveling to or from same in a City vehicle, or while in a status where injury would be covered by Workers' Compensation and/or I.S.C. Section 11.2 Screening. a. Employees shall take a breathalyzer test in the case of suspected alcohol abuse, and/or give a urine sample for suspected substances abuse, as determined by the City, at either a hospital or an accredited testing lab, as chosen by the City. The hospital or accredited testing lab shall include sufficient safeguards to ensure that a proper chain of custody is enforced. When a sample is required to be submitted under any of the above circumstances, a portion of the first sample shall be retained, and the employee may choose to submit a second, separate sample as described in b) below. All positive tests for controlled substance(s) shall be confirmed by Gas Chromatography Mass Spectrometry (GCMS) or equivalent testing method. Testing shall be performed by an accredited, State licensed clinical lab. b. Except in the case of alcohol testing, if the employee chooses to submit a second, separate sample it shall be collected at either a hospital or accredited, State licensed clinical lab, chosen by the City, within four (4) hours of the time the initial sample is submitted. If the employee declines to submit a second, IAFF - 58 separate sample or is unable to submit a second, separate sample within the four (4) hour time period, the retained portion of the initial test shall be used for any additional confirming tests. Any additional confirmation testing shall only be conducted following a positive result from the initial test, and shall be performed at a second, separate State licensed clinical lab of the City's choice. All additional confirmation testing shall be by GCMS or equivalent testing method. c. For purposes of reasonable belief screening criteria under Section 11.1(b)(2), employees shall be deemed alcohol impaired if their blood/alcohol level is measured at .04 or above. The following concentrations shall be applicable for determining whether samples are positive for the drugs or classes of drugs tested in the initial or additional confirmation process. A positive result shall be a concentration as set forth in NIDA (National Institute of Drug Abuse) five (5) panel screening standards. d. Employees shall be notified of a positive test result within a reasonable time from the time a sample is submitted. Such notice may be served either verbally to the employee or by a representative of the Department delivering notice to the employee's last recorded residence shown on the Department's personnel roster. The Union shall be advised of positive or negative test results to the extent that the release of such information is consistent with Federal, State, or local laws regarding the privacy of test results, unless the employee does not want the results released to the Union. e. Employees ordered back to duty for testing shall be compensated under Article 7, Section 7.7, Call-In Guarantee. f. Disputes regarding the consistent application of the reasonable belief criteria cited herein shall be handled under Section 11.3, Expedited Arbitration. Employees shall comply with the order to submit a sample and simultaneously file a protest with the communicator of the order. g. Employees who test positive for drug use and wish to attribute causation to a prescribed drug may present evidence to the City Manager's designee for IAFF - 59 Human Resources and the laboratory's Medical Review Officer. The decision of the Medical Review Officer will be conclusive. h. Employees shall authorize release of drug/alcohol testing to the City. Section 11.3. Expedited Arbitration. a. Following ratification of this Agreement and prior to October 1, 1998, the President of the Union and the City Manager's designee for Labor Relations shall select two (2) permanent Arbitrators certified by the American Arbitration Association (AAA) or other similar certifying agency, to hear employee drug grievances. The Arbitrators will alternate, hearing only grievances where the employee alleges a violation of Section 11.1(b), paragraphs 1 or 2, and limited to whether or not there was reasonable belief based on objective factors to require the grievant to submit to a controlled substance/blood alcohol test. b. Samples submitted under Reasonable Belief Screening criteria and grieved shall not be tested until the Arbitrator has ruled affirmatively that there was reasonable belief to test the employee. c. Any grievance must be in writing and submitted by fax or hard copy to the Division Chief or above on the same day as the test or no later than the next weekday following the test. d. Any costs associated with the Arbitrator's ruling shall be borne by the City if the Arbitrator rules there was not reasonable belief to test the employee, and the sample(s) shall be properly discarded. Costs associated with the Arbitrator's ruling shall be borne by the Union if the Arbitrator rules that there was reasonable belief to test the employee, and the sample(s) shall be tested as outlined in this Article. e. An expedited hearing shall be held before the Arbitration using the American Arbitration Association rules of expedited arbitration and no post hearing briefs shall be filed. The drug grievance shall be submitted directly to arbitration and IAFF - 60 CI shall be heard at a mutually convenient time after the employee was required to submit to the controlled substance/blood alcohol test. The Arbitrator shall rule at the close of the hearing and an oral response from the Arbitrator shall be sufficient to settle the grievance. f. The Arbitrator shall serve from year to year and shall be appointed by letter, jointly signed by the Union President and the City Manager's designee for Labor Relations. Should the City and the Union choose to remove an Arbitrator, the Arbitrator shall be notified and the parties shall agree on a replacement. If they are unable to agree, each party shall put two (2) names into a hat and the name drawn shall be the replacement for one (1) year. Section 11.4. Rehabilitation. In the event that the results of the urinalysis/blood alcohol test are positive, the following shall apply: a. At the discretion of the Fire Chief, the employee may be immediately relieved of duty however, he shall first be allowed to utilize all of his/her accrued annual and sick leave, if appropriate, and then shall be relieved without pay. The employee shall not be disciplined until a positive test result is communicated to the City. However, if the employee's conduct in connection with the alleged substance abuse amounts to conduct for which the City might otherwise discipline the employee, the City may take disciplinary action prior to knowing of a positive test result. b. The employee shall, at his/her own cost, within seventy-two (72) hours of a positive test notification (excluding weekends and holidays) enter into a substance abuse treatment program approved by the City and the Union and remain in the program until the employee has successfully completed the program, including any required aftercare. If the employee fails to enter, participate in, and/or successfully complete any part of the rehabilitation program, including any aftercare, he shall be terminated from his/her employment with the City. IAFF - 61 c. Employees cleared to return to work by the Substance Abuse Program Administrator shall be subject to random urinalysis/breathalyzer test(s) for a period of two (2) years. The City shall be limited to six (6) random urinalysis breathalyzer tests per twelve (12) month period, beginning from the date the employee is cleared to return to work. Each employee shall be entitled to one (1) chance for rehabilitation during their employment with the City. Employees who test positive a second time under the provisions outlined in Section 11.2 of this Article or this Section shall be terminated from employment with the City. IAFF - 62 ARTICLE 12 SAVINGS If any provision of this Agreement is subsequently declared by the proper legislative or judicial authority to be unlawful, unenforceable, or not in accordance with applicable statutes or ordinances all other provisions of this Agreement shall remain in full force and effect for the duration of this Agreement. Upon issuance of such a decision or declaration which is not appealed by either party, the parties shall, following a request by either party, negotiate in good faith on a substitute article, section, or portion thereof. 1= IAFF - 63 ARTICLE 13 WAIVER AND ENTIRE AGREEMENT The Union acknowledges that during negotiations resulting in this Agreement, it had the right and opportunity to make demands and proposals with respect to any and all subjects not removed by law from the area of collective bargaining and that the complete understanding and agreements arrived at by the parties after exercise of that right and opportunity are set forth in this Agreement. Therefore, the Union waives the right, during the term of this Agreement, to bargain collectively with respect to any subject or matter referred to or covered by this Agreement, and it particularly waives the right to bargain over the City's exercise of any of its management's rights set forth in Article 5 of this Agreement, e.g., changing work hour schedule, transferring employees, laying off employees, etc. The parties intend that this Agreement shall constitute the sole source of their rights and obligations from and to each other for its term either by specific provision or by silence. If the Agreement does not prevent it, the City may take any action (or fail to take any action) it desires and shall have no obligation to bargain with the Union concerning the taking, or not, of the action; but may take unilateral action at the time it desires. The Union does not waive, and shall retain its right, to bargain with the City over the impact of any action taken by the City not set forth in this Agreement, but such impact bargaining shall not serve to delay management's action until agreement or impasse is resolved concerning the impact at issue. This Agreement may be amended by mutual agreement of the parties but any amendment must be in writing and signed by duly authorized representatives of the parties before it will be effective. IAFF - 64 ARTICLE 14 TERM OF AGREEMENT This Agreement shall be effective as of its ratification by both parties, and shall remain in force and effect until September 30, 2015. It shall be automatically renewed from year to year thereafter, unless either party shall notify the other in writing at least sixty (60) days prior to the anniversary date that it desires to modify this Agreement. In the event that such notice is given, negotiations shall begin no later than thirty (30) days prior to the anniversary date. This Agreement shall remain in full force and effect during the period of negotiations, unless either party gives the other party at least ten (10) days written notice of its desire to terminate this Agreement, provided that such notice may not be given earlier than ten (10) days prior to the anniversary date. IAFF - 65 IAFF - 66 BnTant _ Miller Attorneys at Law One Biscayne Tower 2 South Biscayne Boulevard Olive Suite 1480 Miami,FL 33131 Tel 305.374.7349 Fax 305.374.0895 www.bmolaw.com July 17, 2013 Jose Smith, Esquire City Attorney City of Miami Beach 1700 Convention Center Drive Miami Beach, Florida 33139 Re: City of Miami Beach and IAFF Tentative Collective Bargaining Agreement October 1,2012—September 30,2015 Dear Mr.Smith: As requested, I have reviewed the tentative collective bargaining agreement between the City of Miami Beach and IAFF for the period October 1, 2012 —September 30, 2015. Based on this review, this is to notify you that I approve the agreement as to form and legality. Very Truly Yours, BRYANT MILLER OLIVE G. . James C. Crosland Atlanta Jacksonville Miami Orlando Tallahassee Tampa Washington, D.C.