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RESOLUTION 92-20598 RESOLUTION NO. 92-20598 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA APPROVING A SETTLEMENT PROPOSAL IN THE CASE OF MCGAVERN, ET AL. V. CITY OF MIAMI BEACH, AS RECOMMENDED BY SPECIAL COUNSEL JAMES C. CROSLAND, AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE ALL DOCUMENTS NECESSARY TO EFFECTUATE SAID SETTLEMENT. WHEREAS, on July 31, 1991, fifteen current and former motorcycle officers filed a lawsuit against the City styled McGavern, et al. v. City of Miami Beach, seeking overtime compensation for motorcycle maintenance; and WHEREAS, the City' s special counsel, James C. Crosland has recommended that the City enter into a settlement in the above- styled cause as set forth in the attached letter. NOW, THEREFORE, BE IT DULY RESOLVED BY THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA: that the City Commission approves the settlement in the case of McGavern, et al . v. City of Miami Beach, as set forth in the attached letter, and that the Mayor and City Clerk are hereby authorized to execute all documents necessary to effectuate said settlement. PASSED and ADOPTED this 16th da of September 1992 . 401/ MAYOR ATTEST: cjtAsiv.A CITY CLERK SWS/cnm misc4.a:mcgavern.res FORM APPROVED) LEGAL DEPT. By f)4(441144, 54414414‘ Date CITY OF MIA- I ' REAGH (1:1. CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139 OFFICE OF THE CITY MANAGER TELEPHONE: (305) 673-7010 FAX: (305) 673-7782 COMMISSION MEMORANDUM NO. .Dbi -L-yd TO: Mayor Seymour Gelber and DATE: SEPTEMBER 16 , 1992 Members of the City Commission FROM: Roger M. Carlton City Manager 4/7t . SUBJECT: SETTLEMENT OF FAIR LABOR STANDARDS ACT LAWSUIT, McGAVERN, ET AL. , V. CITY OF MIAMI BEACH ADMINISTRATION RECOMMENDATION: It is the recommendation of the Administration, that the City Commission approve the attached Resolution, settling the above- captioned lawsuit between fifteen current and former motorcycle officers of the City of Miami Beach Police Department. BACKGROUND: On July 31, 1991, fifteen current and former motorcycle officers filed the above-referenced lawsuit against the City. Plaintiffs claim that under the Fair Labor Standards Act (FLSA) they were entitled to three hours of overtime compensation per week for the care and maintenance of police motorcycles. At the time of trial, this case had been pending for one year; therefore, the City had exposure under FLSA for three, and possibly four years. The minimum potential liability for three years of claimed overtime to the fifteen Plaintiffs was approximately $14 , 040. 00 each, for a total of $210, 600. 00. If the liability was expanded to the four year period, it could have resulted in liability of approximately $18, 720. 00 per Plaintiff, for a total liability of $280, 800. 00. The Federal Statute, FLSA, provides for "liquidated damages" which permits the total back pay award to be double. Since this case was to be decided by the Judge, it was within the Judge's discretion to award liquidated damages. Typically, liquidated damages of the amount of the back pay are provided to the prevailing Plaintiffs. Accordingly, the maximum potential liability to the City for back wages at the time of trial in this case, was approximately $561, 000. 00. Additionally, the attorneys fees are typically provided to the prevailing Plaintiffs in a FLSA action. Settlement was reached with the Plaintiffs in this case for a total amount of $153 , 800. 00; this breaks down to a lump sum payment to each Plaintiff of $7, 920. 00, or a total payment to all Plaintiffs of $118, 800. 00, and $35, 000. 00 in attorneys fees. Settlement was concluded based on the payment of two hours per week of overtime at a rate of $20. 00 per hour for two years, six and one half months. It was agreed that the additional compensation paid the Plaintiffs would not effect their retirement benefits in any way. CONCLUSION: The Administration recommends approval of the attached Resolution, providing for payment of $153 , 800. 00 upon Plaintiffs signatures on the appropriate release; to be approved by the Legal Department. '18 RMC:DRM: lcd AGENDA I TEM R -1 Attachment f== • DATE 9- MULLER, MIN'TZ, KORNREICH, CALDWELL CASEY, CROSLAND & BRAM N ICK, P.A. Pa" C HULLER(1924 9771 DAVID V KORNREICH MICHAEL W CASEY, III SUITE 3600 SOUTHEAST FINANCIAL CENTER OF COUNSEL JAMES C CROSLAND 200 SOUTH BISCAYNE BOULEVARD JAMES S BRAMNICK -+E RBERT a MINTZ PAUL C HEIDMANN MIAMI, FLORIDA 33131 2338 JOSEPH A CALOWELL GORDON D ROGERS MIAMI(3O5)358 5500 JOHN D GRONDA ELIZABETH 5 SrGER BROwARO(305)522 0393 ROBERT C SOLOFF -ELE,AX(305)379.3802 CARMEN S JOHNSON ORLANDO OFFICE CARMEN M RODRIGUEZ SUITE 525. FIRSTATE TOWER DEBRA A ABBOTT 255 SOUTH ORANGE AVENUE JEFFREY E MANOEL JEFFREY C HUMMEL ORLANDO, FLORIDA 32801-3415 DENISE M HEEKIN September 2, 1992 TELEPHONE(407)843 1400 RICHARD 0 TUSCHMAN TELETAX(407)843 1410 Mr. Roger M. Carlton HAND DELIVERY City Manager City of Miami Beach 1700 Convention Center Drive , 4th Floor Miami Beach , Florida 33139-1819 Re: McGavern, et al. v. City of Miami Beach Case No. 91-1647-Civ-Kehoe Dear Mr. Carlton: On July 31, 1991, fifteen (15) current and former motorcycle officers filed the above-referenced lawsuit against the City. In their Complaint, the Plaintiffs claimed that under the Fair Labor Standards Act (FLSA) they were entitled to three hours of overtime compensation per week for the care and maintenance of police motorcycles. Under the FLSA, employees are entitled to recover unpaid overtime compensation for two years. The statute also provides for recovery for three years prior to the filing of a lawsuit when it is determined that the employer acted "willfully. " 29 U.S .C. 255 (a) . The Plaintiffs in this case alleged that they were entitled to three hours of compensation at time and one-half of their regular rate of pay. Based upon an approximate hourly rate of pay of $20. 00 per hour, the minimum potential liability for three hours per week at an overtime rate for two years for each Plaintiff was approxi- mately $9 , 360. 00. For all Plaintiffs, at the time the Complaint was filed, the City had a minimum potential liability for at least two years, which totaled $140, 400. 00. At the time the lawsuit was filed, possible liability for three years of back pay totaled $210, 600. 00. At the time of trial, this case had been pending for one year and, therefore, the City had exposure under the FLSA for three, and possibly, four years. The minimum potential liability for three years of claimed overtime to the fifteen Plaintiffs was approxi- mately $14, 040. 00 each, for a total of $210, 600. 00. It was possible 50 • Mr. Roger M. Carlton September 2, 1992 Page 2 P liability i tcould have been extended to the four year period , that th_ l�.ab Y , • � of approximately $18 , 720. 00 which would have resulted in liability pl per Plaintiff ,f for a total liability of $280 , 800 . 00. Moreover , the FLSA provides for �� liq uidated damages" which permits the total back pay award to be doubled. 29 U.S .C. §§ 216 (b) , 260 . Because this case was to be decided by the Judge, it was within his discretion to q award liquidated damages. Typically, liquidated damages ofthe amount of the back pay award are provided to prevailing plaintiffs.iffs. Accordingly, the maximum potential liability to the City for back wages at the time of trial in this case was approximately $561, 600 . 00. Additionally, attorney' s fees are typically provided to prevailingplaintiffs in an FLSA action. See 29 U.S .C. § 216 (b) . Plaintiffs ' attorneyslikely fees would have exceeded $100, 000. 00 if the case had continued through an anticipated two week trial. Accordingly, in this case the City had total potential liability in an amount over $660, 000. 00. Settlement was reached with the Plaintiffs in this case for a total amount of $153 , 800. 00. This breaks down to a lump sum payment to each Plaintiff of $7 , 920. 00, or a total payment to all Plaintiffs of $118 , 800. 00, and $35 , 000. 00 in attorney' s fees. This settlement was concluded based upon payment of two hours per week of overtime at a rate of $20. 00 per hour for two years, six and one-half months. It was agreed that the additional compensation paid to the Plaintiffs would not affect their retirement benefits in any way. This settlement compares favorably to the negotiated settlement concerning motorcycle police officers entered into between the United States Department of Labor and the City of Hialeah, as well as the negotiated settlement between the Department of Labor and Metro-Dade County. The City of Hialeah negotiated a settlement for two hours per week for two years for each motorcycle officer . Metro-Dade County' s settlement apparently was for payment of two and one-half hours per week for approximately two years and three months for each motorcycle officer . Additionally, Metro-Dade County included the amount of the settlement in the retirement contribution for motorcycle police officers . In further comparison, as a result of an FLSA lawsuit for overtime compensation for care to police dogs, the City of Miami Beach entered into a settlement with six (6) K-9 police officers in November of 1990 which resulted in total payment of $126, 393. 00. Pursuant to the terms of that settlement , the City paid approximately $16, 000. 00 to each K-9 officer . Settlement of this case, as stated above, will require the City to pay approximately $7 ,920. 00 to each of the Plaintiffs. LAW OFFICES MULLER, MINTZ, KORNREICH, CALDWELL, CASEY, CROSLAND & BRAMNICK, P,A. 5i • Mr . Roger M. Carlton September 2, 1992 Page 3 It is our opinion that , considering the potential liability for wages, in this caseadvantageous liquidated damages, and attorney' s fees, the settlement reached q was advanta eous to the City. Moreover , settlement of this case resulted in savings to the City of additional tional attorneY' s fees in excess of $50, 000. 00 for the cost of trial. Finally, because the terms of the settlement are for lump sump Y a ments to the Plaintiffs, there will be no effect on retirement benefits or pensions. Please do not hesitate to contact me if you have any additional questions or wish to discuss this matter. Very truly yours , C J mes C. Crosland JCCra507/jt cc: Laurence Feingold, Esquire Mr. Dean R. Mielke LAW OFFICES MULLER, MINTZ, KORNREICH, CALDWELL, CASEY, CROSLAND & BRAMNICK, P.A. r- y • • LAW OFFICES MULLER, MINTZ, KORNREICH, CALDWELL CASEY, CROSLAND a GRAM N ICK, P.A. RAY C MULLER 1924 1977', DAVID V KORNREICH MICHAEL W CASEY. III SUITE 3600. SOUTHEAST FINANCIAL CENTER O, CCUNSEL JAMES C CROSLAND 200 SOUTH BISCAYNE BOULEVARD -.ERBERT B M1NTZ JAMES 5 BRAMNICK PAUL C HEIDMANN MIAMI, FLORIDA 33131-2338 JOSEPH CALOvvELL GORDON 0 ROGERS MIAMI(305)358-5500 JOHN O GRONDA ELIZABETH S SYGER BROWARO(305)522-0393 ROBERT 0 SOLOFF TELEFAx(305)379-3802 ORLANDO OFFICE CARMEN S JOHNSON CARMEN M RODRIGUEZ Su TE '525. FIRSTATE TOWER DEBRA A ABBOTT 255 SOUTH ORANGE AVENUE JEFFREY E MANDELORLANDO, FLORIDA 32801-3415 JEFFREY C. HUMMEL DENISE M HEEKIN September 2, 1992 TELEPHONE(407)843 1400 RICHARD D TUSCHMAN TELEFAX(407)843 1410 Mr. Roger M. Carlton HAND DELIVERY City Manager City of Miami Beach 1700 Convention Center Drive, 4th Floor Miami Beach, Florida 33139-1819 Re: McGavern, et al. v. City of Miami Beach Case No. 91-1647-Civ-Kehoe Dear Mr. Carlton: On July 31, 1991, fifteen (15) current and former motorcycle officers filed the above-referenced lawsuit against the City. In their Complaint, the Plaintiffs claimed that under the Fair Labor Standards Act (FLSA) they were entitled to three hours of overtime compensation per week for the care and maintenance of police motorcycles. Under the FLSA, employees are entitled to recover unpaid overtime compensation for two years. The statute also provides for recovery for three years prior to the filing of a lawsuit when it is determined that the employer acted "willfully. " 29 U.S .C. 255 (a) . The Plaintiffs in this case alleged that they were entitled to three hours of compensation at time and one-half of their regular rate of pay. Based upon an approximate hourly rate of pay of $20. 00 per hour, the minimum potential liability for three hours per week at an overtime rate for two years for each Plaintiff was approxi- mately $9, 360. 00. For all Plaintiffs, at the time the Complaint was filed, the City had a minimum potential liability for at least two years, which totaled $140, 400. 00. At the time the lawsuit was filed, possible liability for three years of back pay totaled $210, 600. 00. At the time of trial, this case had been pending for one year and, therefore, the City had exposure under the FLSA for three, and possibly, four years. The minimum potential liability for three years of claimed overtime to the fifteen Plaintiffs was approxi- mately $14, 040. 00 each, for a total of $210, 600. 00. It was possible Mr . Roger M. Carlton September 2, 1992 Page 2 that the liabilitycould have been extended to the four year period, which would have resulted in liability of approximately $18 , 720. 00 per Plaintiff ,f , for a total liability of $280, 800. 00. Moreover , the FLSA provides for " liquidated damages" which permits the total back pay award to be doubled. 29 U.S .C. §§ 216 (b) , 260 . Because this case was to be decided by the Judge, it was within his discretion to award liquidated damages. Typically, liquidated damages ofthe amount of the back pay award are provided to prevailing plaintiffs. Accordingly, the maximum potential liability to the City- for back wages at the time of trial in this case was approximately $561, 600 . 00. Additionally, attorney' s fees are typically provided to plaintiffs prevailinglaintiffs in an FLSA action. See 29 U.S .C. § 216 (b) . Plaintiffs ' attorneys fees likely would have exceeded $100 , 000. 00 if the case had continued through an anticipated two week trial. Accordingly,, in this case the City had total potential liability in 9 an amount over $660, 000. 00. Settlement was reached with the Plaintiffs in this case for a total amount of $153, 800. 00. This breaks down to a lump sum payment to each Plaintiff of $7 ,920. 00, or a total payment to all Plaintiffs of $118 , 800. 00, and $35 , 000. 00 in attorney' s fees. This settlement was concluded based upon payment of two hours per week of overtime at a rate of $20. 00 per hour for two years, six and one-half months. It was agreed that the additional compensation paid to the Plaintiffs would not affect their retirement benefits in any way. This settlement compares favorably to the negotiated settlement concerning motorcycle police officers entered into between the United States Department of Labor and the City of Hialeah, as well as the negotiated settlement between the Department of Labor and Metro-Dade County. The City of Hialeah negotiated a settlement for two hours per week for two years for each motorcycle officer . Metro-Dade County' s settlement apparently was for payment of two and one-half hours per week for approximately two years and three months for each motorcycle officer . Additionally, Metro-Dade County included the amount of the settlement in the retirement contribution for motorcycle police officers. In further comparison, as a result of an FLSA lawsuit for overtime compensation for care to police dogs, the City of Miami Beach entered into a settlement with six (6) K-9 police officers in November of 1990 which resulted in total payment of $126, 393. 00. Pursuant to the terms of that settlement, the City paid approximately $16, 000. 00 to each K-9 officer . Settlement of this case, as stated above, will require the City to pay approximately $7 ,920. 00 to each of the Plaintiffs. LAW OFFICES MULLER, MINTZ, KORNREICH, CALOWELL, CASEY, CROSLANO & BRAMNICK, P.A. Mr. Roger M. Carlton September 2, 1992 Page 3 It is our opinion that , considering the potential liability for back wages, liquidated damages, and attorney' s fees, the settlement reached in this case was advantageous to the City. Moreover , settlement of this case resulted in savings to the City of additional attorney' s fees in excess of $50, 000. 00 for the cost of trial. Finally, because the terms of the settlement are for lump sum payments to the Plaintiffs, there will be no effect on retirement benefits or pensions. Please do not hesitate to contact me if you have any additional questions or wish to discuss this matter. Very truly yours , ( mes C C. Crosland JCCra507/jt cc: Laurence Feingold, Esquire Mr. Dean R. Mielke LAW OFFICES MULLER, MINTZ, KORNREICH, CALOWELL, CASEY, CROSLANO & BRAMNICK, P.A. • U) BRIG:NAL RESOLUTION NO. 92-20598 Approving a settlement proposal in the case of McGavern, et al. V. City of Miami Beach, as recommended by special counsel James C. Crosland, and authorizing the Mayor and City Clerk to execute all documents necessary to effectuate said settlement.