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2004-25526 Reso RESOLUTION NO. 2004-25526 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA TO RATIFYING A THREE YEAR LABOR AGREEMENT BETWEEN THE CITY OF MIAMI BEACH AND THE FRATERNAL ORDER OF POLICE, FOR THE PERIOD FROM OCTOBER 1, 2003 THROUGH SEPTEMBER 30, 2006,AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE THE AGREEMENT. WHEREAS, the City Manager is herein submitting to the Mayor and City Commission the attached Labor Agreement recently negotiated between the City of Miami Beach, Florida, and the Fraternal Order of Police, (FOP), the bargaining agent certified by the Public Employees Relations Commission (PERC) for the employees covered by said Agreement; and WHEREAS, the previous Labor Agreement was for a three year period from October I, 2000 through September 30, 2003 and has expired; and WHEREAS, the FOP bargaining unit has ratified the attached Labor Agreement and the City Manager recommends that the City Commission ratify and authorize the execution of the Labor Agreement between the City and the FOP Union. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the attached Labor Agreement between the City of Miami Beach and the FOP for the period covering October 1,2003 through September 30, 2006, is hereby ratified and that the Mayor and City Clerk are authorized to execute the Agreement. PASSED AND ADOPTED this17tlday of March ,2004. _~r f~ CITY CLERK ATTEST: JMG/RI/LG F:\HUMA ILABORREL\Labor RelationslCommission MemoslResolutionslFOP RESO for the 2003-2006 contraAlPROVED AS TO FORM & LANGU.-.Gt: & FOR EXECUTION ~J!e- CITY OF MIAMI BEACH COMMISSION ITEM SUMMARY ~ ~ Condensed Title: A Resolution to ratify the three (3) year labor agreement between the City of Miami Beach and the Fraternal Order of Police (FOP). Issue: Shall the City of Miami Beach ratify the three (3) year labor agreement between the City of Miami Beach and the Fraternal Order of Police? Item Summa IRecommendation: Adopt the Resolution. This Resolution will provide FOP Employees with an across the board cost-of-Iiving increase of 3% starting October 5, 2003, 3% starting October 4, 2004, and 3.5% starting October 9, 2005, and will include the same increases to the minimum and maximum of the salary ranges. There will be an addition of 100 vacation hours that can be accrued, and paid out at the time of termination. Additionally, starting in Year 2, there will be increases to the hourly shift differential of .13/hour for shift 2, and .23/hour for shift 3. An increase of 1 hour for the first court time appearance, (from 3 to 4 hours). In Year 3, there will be a Quality of Life Certification equivalent to .75% of payroll, or $14.40/pay period, and if the program is deemed successful b the Ci Mana er, to $28.80/ a eriod at the end of Year 3. Advisory Board Recommendation: I Financial Information: Source of Amount Account Approved Funds: Year 1 cost Total contract cost (3 year) 1 $613,905 $2,006,068 COLA - Police Deoartment 2 $106,466 Shift Differential - Police Deoartment 3 $237,291 Court time - Police Deoartment 4 $131,414 Quality of Life Certification - Police Deoartment 5 $737 $2,396 Increase annual leave cap - Police Deoartment Finance Dept. Total $614,642 $2,483,635 City Clerk's Office Legislative Tracking: I Linda Gonzalez Si n'()ffs: Department Director Assistant City Manager City Manager T:\AGENDA\20041Mor1704\Regular\FOP ilom surnrsry 2003-2006.doc AGENDA ITEM l~ 7 ~ DATE 3-/l-o~ CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 www.miamibeachfl.gov COMMISSION MEMORANDUM From: Mayor David Dermer and Members of the City Commission Jorge M. Gonzalez \ ,y'-el../ City Manager 0 0 Date: March 17,2004 To: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA TO RATIFY A THREE YEAR LABOR AGREEMENT BETWEEN THE CITY OF MIAMI BEACH AND THE FRATERNAL ORDER OF POLICE, FOR THE PERIOD FROM OCTOBER 1, 2003 THROUGH SEPTEMBER 30, 2006, AND AUTHORIZE THE MAYOR AND CITY CLERK TO EXECUTE THE AGREEMENT. ADMINISTRATION RECOMMENDATION: Subject: Adopt the Resolution. BACKGROUND: On September 26, 2003, the City of Miami Beach and the Fraternal Order of Police (FOP) held the first negotiation session to collectively bargain a new contract. The Administration received direction from the City Commission on the proposals made by both sides through an Executive Session held on December 9, 2003. The Administration's goals in completing the new contract included: ensuring fiscal responsibility; maintaining the ability to recruit the most qualified officers in our workforce; retaining our current officers by remaining at the top or near the top in every pay and benefit category and having a contract that is considered equitable by both the Administration and the FOP. To ensure our goals were met, the Administration met with the Budget Advisory Committee (BAC) on January 6, 2004 and discussed the budget as it related to the contract proposals and fiscal responsibility going forward. The City also conducted a detailed salary and benefits survey ofthirteen (13) surrounding municipalities which provided a benchmark for negotiations and confirmed that the FOP contract was already one of the best available before the negotiation process started. The City of Miami Beach ranked in the top three for the minimum and maximum base pay, (with leave and longevity pay), for the classifications of Police Officer, Sergeant, and Lieutenant. The City of Miami Beach ranked number one in a comparison ofthe overall benefits available to officers. In addition, the City confirmed an extremely low turnover rate of only three officers who had left the City for another employer within the State of Florida over the past three years. COMMISSION MEMORANDUM MARCH 17,2004 COMMISSION MEETING PAGE- 2 - On January 29, 2004, after four negotiation sessions, negotiators for the City of Miami Beach and the Fraternal Order of Police (FOP) successfully concluded negotiations for a three year collective bargaining agreement. The FOP membership reviewed the proposed Agreement on March 3, 2004, and ratified the contract with a vote of one hundred fifty-three (153) in favor and one hundred twenty- seven (127) opposed. While negotiators for the City and the Union were obliged to represent the best interest of their respective "clients," the shared goal was to produce an Agreement that was equitable as to competitive compensation and working conditions. The following is a summary of the most significant changes from the previous Agreement. Waaes The term of the Agreement will extend for three (3) years from October 1, 2003 through September 30, 2006. Effective with the first full payroll period that begins on or after October 5, 2003 bargaining unit employees will receive a three percent (3%) salary increase. In addition, effective with the first full payroll period that begins on or after October 4, 2004 bargaining unit employees will receive a three percent (3%) salary increase. Finally, effective with the first full payroll period that begins on or after October 9, 2005 bargaining unit employees will receive a three and one half percent (3.5%) salary increase. The minimum and maximum of the salary range will be adjusted accordingly each year of the contract. (The contract cost for COLA is $2,006,068.) Effective with the start of the second year of this agreement, the shift differential for hours worked between 3:00 p.m. and 11 :00 p.m. will increase from thirty two cents ($.32) per hour to forty five cents ($.45) per hour. The shift differential for hours worked between 11 :00 p.m. and 7:00 a.m. will increase from fifty two ($.52) cents per hour to seventy five cents ($.75) per hour. (The contract cost for shift differential is $106,466.) Effective with the start of the second year of the contract, time paid for the first court appearance will increase from three (3) hours to four (4) hours. (The contract cost for court time is $237,291.) Effective with the start of the third year of the contract, the City will implement a Quality of Life Program. The goal of the program is to improve the quality of life for our residents by training our police officers through a certification program which will include training on community policing, code compliance enforcement and homeless issues. Upon receiving their certification in the program, the officers will receive a supplement of fourteen dollars and forty cents ($14.40) per pay period, which will increase to twenty eight dollars and eighty cents ($28.80) per pay period, at the end of year three, should the program be successful, at the discretion of the City Manager. (The contract cost for the Quality of Life Program is $131,414.) COMMISSION MEMORANDUM MARCH 17, 2004 COMMISSION MEETING PAGE- 3 - Based on current active employees, the estimated cost for the wage increase is approximately $614,642 for Fiscal Year 2003/2004; approximately $800,352 for Fiscal Year 2004/2005; and approximately $1,068,640 for Fiscal Year 2005/2006. Other Economic and Contractual Aareements 1. Amend the formula used for calculating the City's contribution to the Health Trust The amount paid to the Health Trust, (Trust) will now be based on the Trust's actual claims experience, and not based on the City's Preferred Provider Organization (PPO) plan. Although the City's PPO plan increase has no correlation to the Trust's increase, the City is contractually bound by it. This contribution method ensures that the FOP Health Trust will be kept financially secure, while allowing the City contributions to reflect their actual premiums. Based on the experience over the past three years of the current contract, the new formula represents a savings of approximately $800,000 for the new contract period. 2. Election of Remedies The parties agreed that the grievance/arbitration process set forth in the Agreement, and the use of a Special Master shall be the methods available for resolving all grievances filed by the bargaining unit. The Personnel Board will no longer have jurisdiction to hear any grievances or appeals filed by FOP members. 3. FOP President At present, the FOP President works full time in a Union capacity and is considered "detached", i.e. has no assigned duties. The contract allows the FOP President to make an election each year ofthe contract to either remain detached; or receive an annual time bank of fifteen hundred (1500) hours per year which can be used for Union business by the President or other designated FOP member. This would allow the President to return to his regular duties for a portion of the hours he works while allowing other members Union time. 4. Re.()peners Effective January 1, 2006, the City reserves the right to re-open the article on Uniform cleaning allowance, and explore the possibility of a cleaning service in an effort to reduce costs to the City. The Union reserves the right to re-open and resume discussion regarding the current calculation for overtime that is pensionable. The FOP also reserves the right to a "me-too" with International Association of Firefighters (IAFF). COMMISSION MEMORANDUM MARCH 17, 2004 COMMISSION MEETING PAGE- 4 - 5. Buyback of Probationary Time The parties have agreed to extend the buyback of probationary time up until the time of retirement with three percent (3%) interest per year. Prior to this agreement, employees had to utilize the buyback within six months of completing their probationary period. 6. Vacation Cap There will be an addition of 100 vacation hours that can be accrued and paid out at the time of termination. CONCLUSION: The negotiated contract ensures that the City will meet its goals of continuing fiscal responsibility, hiring and retention of the best officers, maintaining the best pay and benefits available, while providing for an equitable contract for both the City and the FOP members. The Administration recommends that the Mayor and City Commission adopt the Resolution to implement the collective bargaining adjustments negotiated between the City of Miami Beach and Fraternal Order of Police (FOP) for the period covering October 1, 2003 through September 30, 2006. JMG\RI\L~ T:\AGENDA\2004\Mar1704\Regular\fop commission memo for 2003-2006 contract.doc