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2007-26495 Reso RESOLUTION NO. 2007-26495 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 FIREFIGHTERS (IAFF), LOCAL 1510, FOR THE PERIOD FROM OCTOBER 1, 2006, THROUGH SEPTEMBER 30, 2009, AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE THE AGREEMENT. WHEREAS, the City Manager is hereby submitting to the Mayor and City Commission the attached Labor Agreement, recently negotiated between the City and the International Association of Firefighters (IAFF), Local 1510, the bargaining agent certified by the Public Employees Relations Commission (PERC), for the employees covered by said Agreement; and WHEREAS, the previous Labor Agreement was for a three year period from October 1, 2003, through September 30,2006; and WHEREAS, the IAFF 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 IAFF 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 and IAFF Local 151 0 for the period covering October 1, 2006, through September 30,2009, is hereby ratified, and the Mayor and City Clerk are authorized to execute the Agreement. PASSED AND ADOPTED this 14tlday of March ,2007. ATTEST: !4k"d PMrk Mk4 ~ ~ CITY CLERK Robert Parcher Michael Gongora Vice-Mayor F:\labo\LABORREL\Labor Relations\Commission Memos\Resolutions\IAFF Resolution for 2006-2009 contract.doc APPROVED AS TO FORM & GUAGE & FOR UTION -zlz,le- ~+rJ!-L COMMISSION ITEM SUMMARY Condensed Title: A resolution of the Mayor and the 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 (IAFF) Local 151 0, for the period from October 1, 2006 through September 30,2009, and authorize the Mayor and City Clerk to execute the aqreement. Ke Intended Outcome Su orted: Attract and maintain a quality workforce and ensure expenditure trends are sustainable over the long term. Issue: Shall the City of Miami Beach ratify the three (3) year labor agreement between the City of Miami Beach and IAFF? Item Summary/Recommendation: Adopt the resolution. This Resolution will provide IAFF employees with an across the board cost-of- living increase (COLA) of 6% for the first pay period ending in October 2007; 5% or the first pay period ending in October 2008; and 4% for the first pay period ending in October 2009, and will include the same increases to the minimum and maximum of the salary ranges; and increases the paramedic pay by .75% at the end of Year 2 and Year 3. In addition, the contract will provide for base pay plan parity with the FOP and parity for promotional time in grade. Further, the contract will increase the out of class and rescue out of class pay from $1/hour to $2/hour; eliminate a one year waiting period for divisional assignment pay; increase floating holidays to two - twenty four hour holidays; increase fire inspector pay from 2.5% to 5% and the union time bank will be increased to 2080 hours (from 1500 hours). In order to increase the number of certified Fire Inspectors, the contract will allow up to four bargaining unit employees to enroll in inspector certification while simultaneously decreasing the number of paramedics sent to training on City time. In order to decrease sick time usage, a random drug testing program will be implemented which ties the use of sick time to random drug testing, a new leave settlement program will be implemented to discourage the use of sick time prior to retirement, and a sick leave sell back program will be implemented which allows employees to sell back time each year. Finally, new language is added to require a refund from the Health Trust to the City, should the cost increase to the Trust be less than the actual City contribution each year. Advisory Board Recommendation: I Financial Information: Source of Amount Account Approved Funds: 1 $774,256 Included in various Departmental salarv budaets for vear 1 2 $762,854 To be included in various ~ Departmental salary budgets for vear2 3 $751,142 To be included in various Departmental salary budgets for vear3 aSPI Total $2,288,252 Included in various Departmental salarv budaets Financial Impact Summary: Ci Clerk's Office Le islative Trackin Linda Gonzalez, Labor Relations Director Si n-Offs: Department Director Linda Gonzalez Assistant City Manager Ramiro Inguanzo City Mana Jorge M. Gonzalez lD ..... MIAMI BEACH AGENDA ITEM DATE '~7E '3 - / l{-o 7 G MIAMI BEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov COMMISSION MEMORANDUM TO: Mayor David Dermer and Members of the City Commission FROM: Jorge M. Gonzalez, City Manager} --0 March 14,2007 () DATE: SUBJECT: 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 FIREFIGHTERS (IAFF) LOCAL 1510, FOR THE PERIOD FROM OCTOBER 1,2006 THROUGH SEPTEMBER 30,2009, AND AUTHORIZE THE MAYOR AND CITY CLERK TO EXECUTE THE AGREEMENT. ADMINISTRATION RECOMMENDATION: Adopt the Resolution BACKGROUND: On December 19, 2006, after six (6) negotiation sessions, negotiators for the City and the International Association of Firefighters (IAFF), Local 151 0, successfully reached a tentative agreement and concluded contract negotiations for a three-year collective bargaining agreement for the period of October 1, 2006 through September 30, 2009. Both the Administration and the IAFF worked diligently throughout these sessions to reach common ground on the negotiation proposals made by each side. Although the City shared salary comparisons with the IAFF negotiation team, which demonstrated that they were the highest paid (or near the highest paid) in every salary and benefit category around the State of Florida (compared to other Fire Departments), negotiators for the IAFF stated that it was of the utmost importance to them to achieve base pay plan parity with the City's Police Department, Fraternal order of Police (FOP) in the new contract term. Therefore, much of the negotiations centered on the base pay parity concept. The IAFF membership held a ratification vote on the proposed Agreement from March 5 2007 until March 8, 2007. The final vote was 137 in favor and 12 opposed. (Ninety two percent (92%) of the voting members were in favor of the proposed Agreement.) While negotiators for the City and the IAFF were obliged to represent the best interests of their respective stakeholders, the shared goal was to produce an Agreement that was equitable to both parties and contained competitive compensation and working conditions. The following is a summary of the most significant changes that resulted from negotiations: Waaes and Paramedic Pay The term of the Agreement will extend for three (3) years from October 1, 2006 through September 30,2009. Consistent with the current consumer price index (CPI), effective with the first payroll period ending in October 2006, IAFF bargaining unit employees will receive a six percent (6%) salary cost of living (COLA) increase. Effective with the first payroll period ending in October 2007, bargaining unit employees will receive a five percent (5%) COLA increase. Finally, effective with the first payroll period ending in October 2008, bargaining unit employees will receive a four (4%) cost of living (COLA) increase. The minimum and maximum of the salary range for each position in the IAFF will be adjusted accordingly each year of the contract. In addition, the paramedic pay will be increased at the end of year two by .75% and at the end of year three by .75%. The contract cost for the three year COLA increase is approximately $1,986,974. The contract cost for the three year paramedic pay increase is approximately $94,525. Parity with the FOP Pay Plan The new contract provides base pay plan parity with the City's Police Department FOP, therefore, Firefighter I's and Police Officers will have equivalent base pay plans; Firefighter II's and Police Sergeants will have equivalent base pay plans; and Fire and Police Lieutenants will have equivalent base pay plans. In accordance with the change to the base pay plan parity, time in grade required for promotions will also be adjusted to mirror the City's Police Department. Effective with the first year of the contract, the promotional time in grade for all Firefighter I's will be changed to reflect the current time in grade for Police Officers. The time in grade will be changed to four years seniority from the date of appointment to Firefighter I. Firefighter II's, Fire Lieutenants and Fire Captains shall all have two years seniority from the date of appointment in order to be eligible to take the promotional exam. Other Economic and Contractual aareements Out of Class Pay & Rescue Out of Class Pay The new contract provides for an increase of one dollar ($1) per hour to the Out of Class Pay and Rescue Out of Class Pay (which has not been increased for many years). The increase is effective beginning in the second year of the contract. The contract cost for the Out of Class pay & Rescue Out of Class pay for the two contract years is approximately $152,052. Divisional Assianment Pay In the current contract, all Firefighters that are newly assigned to the Fire Prevention or Support Services Division must wait one (1) year before receiving their full assignment pay. The new contract language eliminates this one (1) year waiting period, and all divisional assignment pay, (other than suppression) will be made immediately upon assignment. The contract cost for the increase in Divisional Assignment pay will be approximately $12,372. Increase Floating Holidavs Effective with the first year of the contract, all Firefighters who are assigned to a 24-hour shift will have the amount of floating holiday hours available to them increased from one 36-hour holiday to two 24-hour holidays. The contract cost for the increase in floating holidays will be approximately $181,612. Fire Inspector Pay and Training Effective with the first year of the contract, the pay for all Firefighters who obtain and maintain State certification as Fire Inspectors shall have their certification pay increased from two and one half percent (2.5%) to five percent (5%). The contract cost for the increase in Fire Inspector certification pay will be approximately $80,680. In addition, effective with the first year of the contract, and in an effort to increase the number of long term certified Fire Inspectors, the Fire Department will allow four (4) bargaining unit employees to enroll in courses necessary to achieve Fire Inspector certification. Simultaneously, the City will decrease the number of paramedics sent to training each year since the City currently has more than a sufficient number of paramedics on staff. The cost savings for the three years of the contract will be approximately $219,964. Union Time Bank The IAFF Union Time Sank will be increased from 1,500 hours per year to 2,080 hours per year. The new contract language limits the use of the time bank to members of the IAFF Executive Soard. Random Drug Testing In an effort to emphasize the importance of the role drug testing plays in the safety and welfare of our residents and employees, an additional drug testing standard will be added to the new contract. Within thirty (30) days after the ratification ofthis Agreement employees in the IAFF will be subject to random drug testing (if their sick leave balance falls below the criteria as detailed in the contract) for a 180 day period. Employees, whose sick leave bank does not fall below this new standard, will continue to be subject to drug testing in accordance with the current contract, which requires submission to a drug test once per calendar year. Sick Leave Sell Back and Leave Settlement During the term of this contract, the City will re-institute a sick leave sell back program. The purpose of the program is to provide an incentive for Firefighters to use less sick leave time and increase the "show-up rate" thereby decreasing the need for overtime during staffing shortages, as well as reducing the amount of overtime paid due to sick call outs. In addition, since employees are "selling back" their sick time throughout the term of the contract instead of at the end of their employment (when the sick time is at its highest value), the overall cost is reduced. The sick leave sell back program will allow the sell back of up to sixty (60) hours each year (ninety (90) for shift personnel), as long as the employee retains a minimum of 360 combined sick and vacation leave (540 hours for shift personnel). The sell back requirements stipulate that the maximum 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 unscheduled leave the employee used during the applicable annual sell back period for example, if an employee uses 10 hours of unscheduled time he/she is only eligible to sell back fifty (50) hours). All sick time and use of emergency leave is deducted from the total allowable sell back hours. In addition, the calculation used for leave settlement purposes when an employee retires has been changed to deter the use of sick time prior to retirement. Currently, when an employee retires, they automatically "lose" half of the sick time they have accumulated over their career. Losing this time has, at times, indirectly encouraged employees to use their sick time while they are employed. The new contract allows the employees leave settlement to be based on a combination of sick and vacation time, (utilizing the same maximum hours), to positively encourage employees not to "use up" their sick hours. Health Trust Currently, the amount paid to the Health Trust (Trust), is based on the Trust's projected cost increase, and is capped by the straight line average increase to the City's five (5) health insurance plans. The new contract adds a provision that requires a refund from the Trust to the City in the event the actual cost increase of the Trust is less than the City's straight line average. In all cases, the cap on the increase to the Trust from the City remains the same. This language may result in a substantial cost savings to the City over the contract term. CONCLUSION: 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 International Association of Firefighters (IAFF), Local 1510, for the period covering October 1, 2006 through September 30, 2009. JMG\RI\L~.1> F:llabolLABORRELILabor RelationslCommlssion MemosllAFF commission memo for 2006-2009 contract.doc