Loading...
Minutes 04-26-93HINUTES OF THE SPECIAL CITY CO#HISSION NEETING HELD IN COHHISSION CHAHBERS, CITY HALL, BOYNTON BEACH, FLORIDA, ON HONDAY, APRIL 26, 1993, AT 7:00 PRESENT Edward Harmening, Mayor Jose Aguila, Vice Mayor David Katz, Commissioner Lynne Matson, Commissioner Robert Walshak, Commissioner J. Scott Miller, City Manager James Cherof, City Attorney Sue Kruse, City Clerk CALL TO ORDER Mayor Harmening called this special meeting to order at 7:00 P. M. to resolve the impasse between the City of Boynton Beach and the Boynton Beach Association of Firefighters Local 1891 of the International Association of Firefighters. N,otlon Commissioner Walshak moved to accept the Special Master's recommendations. Mr. Cherof advised that the statute requires a public hearing on this issue. PRESENTATION BY CITY Carrie Parker, Assistant City Manager, stated that in May of 1992 the City and the Union notified each other of their intent to bargain the second year of a two year contract. An executive session was held with the City Commission. On June 9, 1992, negotiations began. Thirteen sessions were held between the City and the Union. Seven executive sessions were held with the City Commission. In September, the City Commission adopted a final budget and millage rate. On October 1, 1992, the new fiscal year began. Negotiations were still underway and on November 30, 1992, the City declared impasse. A Special Master Hearing was held on February 5, 1993. On February 23, 1993, the City received the recommendation of the Special Master. A meeting was held on March 5, 1993 to discuss that recommendation. This matter is now before the City Commission for their final decision. The issues involved are as follows: Article 14 - Wages Section i - C.O.L.A. Section 2 - Step Plan Section 3 - L-$ Lump Sum Payment Article 17 - Sick Leave Section 1 - Sick Leave Conversion - Cash/Vacation Section 2 - Sick Leave Payments Upon Leaving City Service Section 3 - Sick Leave Bonus - 1- #~NUTE$ - SPECIAL C~TY COMI4~$$ZON #EET~HG BOYNTON BEACH, FLORIDA APRIL 26, 1993 Article 19 - Vacation Section 1 - Vacation Accrual Ms. Parker distributed a packet of information and reviewed it during her pres- entation. She stated that the financial condition of the City is serious and that Management has tried to balance the budget and the needs of the citizens for the vital service provided by the firefighters. Ms. Parker stated that economic conditions have changed since the 1970s and the City is no longer in a period of high growth, as reflected by the property tax base and building permits. In addition, the City is approaching the ten mill cap. Ms. Parker advised that the Boynton Beach Firefighters work a 48 hour week. They work one shift on {24 hours) and have two days off {48 hours). For every seventh shift day, they receive an additional 24 hours off {Kelly Day}. This Kelly Day is used to reduce the overall average to the 48 hour work week. Ms. Parker reviewed the types and number of calls responded to by the Boynton Beach Fire Department in 1992 and the cost differentials of the various programs. She stated that the firefighters are the only employees to have an L-6 Lump Sum Payment Program wherein they receive a $1,000 bonus for each year after they reach the cap on their pay grade. Nine employees are presently at their cap. The 5% Step Plan and the $1,000 bonus costs $90,799. The City also has to pay fringe benefits on those costs, bringing the total to $113,829 for the first year. In addition, the 5% Step Plan is staggered by anniverary date. Therefore, the City does not realize the full impact of the cost all in one year. In addition to the cost of living adjustments and the merit step plan increases, the City of Boynton Beach is the only City in Florida to have a Firefigher I, II and III Program whereby fire~ighters receive automatic pay increases after passing certain tests. This program is restricted only by time, grade, and the ability of the firefighter to pass certain tests. As a result of this program, 26 per cent of the firefighters received pay increases last year, despite the cost of living adjustment and merit step plan being frozen. All the firefighters are required to be EMTs after the first year, which they receive a 5 per cent differential for. The City pays firefighters an additional 15 per cent if they receive paramedic certification. Ms. Parker reviewed a chart relative to the rate of pay for Firefighter I, III, Lieutenant, and Captain in Boynton Beach, as compared to thirty other cities. The current salaries for these positions in Boynton Beach fall in the top 30 per cent of the thirty cities surveyed. These numbers do not include the addi- tional dollars received for additional certification. The City feels it is com- petitive as far as wages go. Ms. Parker reviewed a chart comparing the sick leave hours earned per month by Boynton Beach employees as compared to other cities in Palm Beach County. -2- HZNUTE$ - SPECIAL CITY COHHISSION HEETING BOYNTON BEACH, FLORIDA APRIL 26, 1993 Boynton Beach is one of the best. The shift employees accrue twelve hours of sick leave per month, which the City is now proposing to change, Ms. Parker explained that as an incentive for Fire employees not to use their sick leave, for every twelve months they do not use any leave sick, they receive an additional 24 hours of vacation time. This is a benefit no other employee has and'there are only two other cities in Palm Beach County that have this incentive program. With regard to the sick leave conversion policy, of thirty cities surveyed in the State, a number of them do not provide any type of conversion policy at a11. The only other City in Palm Beach County that provides a conversion policy is West Palm Beach. The conversion policy allows employees to convert 100 hours of sick leave into cash or vacation time after they have reached a 240 hour base, the conversion rate being one hour of sick leave to one hour of vacation leave or one hour of salary. This costs the City $61,606, which was last paid out in Hay of 1991, The sick leave conversion policy was frozen last year. The City is proposing that this policy continue, but that no cash be associated with it and with the conversion rate being.one hour of sick leave to one-half hour of vacation leave, Ms. Parker pointed out that general employees do not have this benefit. Employees of the Police Department have this benefit; however, it is frozen for this year. With regard to the sick leave payment policy, Ms. Parker stated that the fire- fighters feel the City is splitting the Union by proposing to change the bene- fits for new employees hired after October 1, 1993. She pointed out that all City employees are currently working under a split plan because Social Security payments for employees born in 1960 or later were reduced by the Federal Government last year. She stated that split plans are common situations to address financial considerations. Half of the thirty cities surveyed have a cap on the accumulation of sick hours. The City of Boynton Beach does not. The City of Boynton Beach calculates benefits at the rate of pay that is in effect at time of separation. Many cities calculate it at the time of computation or earnings. With regard to the accrual rate when an employee separates in good standing, currently all City employees hired prior to October 1, 1991, receive 50 per cent of the unlimited cap. In 1991, the City Commission imposed a reduc- tion in that for all other employees. The Police Union and the General Employees Union agreed to that reduction as part of the bargaining process for all employees hired after October 1, 1991. This issue was discussed many times at the bargaining table during the 1991 contract negotiations with the Fire Department and it was decided to reopen it last year because an agreement could not be reached at that time. The City is proposing to reduce the 50 per cent to a sliding scale ranging from zero to 30 per cent upon retirement, depending on the employee's years of service. This would only impact employees hired after October 1, 1993. There are currently employees eligible to retire in the Fire Department with full benefits. The sick and vacation balance accrued over the years by these employees would cost the City $248,771.20 if they were to leave today. In addition, this money is calculated in as part of the employee's final average earnings which goes into the calculation of their pension payments. Out of the thirty cities surveyed, only Boynton Beach offers all four benefits of -3- NINUTE$ - SPECIAL CITY COt4NI$$ION #EETING BOYNTON BEACH, FLORIDA APRIL 26, 1993 the sick leave incentive program (sick leave, bonus accrual program, unlimited accumulation of sick leave, and pay out at time of termination, separation or retirement). With regard to vacation, the program the City is proposing would only impact employees hired after October 1, 1993. A reduced vacation scheduled was adopted by the City Con~nission for all nonunion employees and the other unions have agreed to the reduced vacation scheduled in 1991. Paul Bremer of Ernst and Young advised the Con~nission of the various funds and what they can be used for. He stated that the General Fund Budget is an annual estimate of revenue and expenditures prior to the beginning of the new fiscal year. He said the timing of revenue varies and the City does not have control over certain revenues. There are also deviations in revenue estimate. With regard to expenditures, many times unanticipated items arise and sometimes departments exceed their budgets. Mr. Bremer reviewed the Balance Sheet--General Fund, the Components of the General Fund Balance, the Combining Balance Sheet--Internal Service Funds, the General Fund from September 30, 1989 through March 31, 1993, the Fire Department Revenues, the trend of General Fund Expenditures, Fire Department Expenditures, 1992/93 Estimated Revenues, Analysis of Contingency Account 1992/1993 and Millage Rate Comparison. ' City Manager Miller elaborated on the 1992/1993 Estimated Revenues. He pointed out that when the City computed the property taxes in the budget process last year, 1.5 per cent was factored in for uncollectibles. The 1.5 per cent was equalized because the City received a drop in its assessed valuation in early February, 1993. He also pointed out that there is no guarantee of the sales tax. In addition, if a major development were to come into the City with a con- ceptual plan, it would be at least two years before that property is placed on the tax rolls. City Manager Miller added that there is only one major develop- ment currently going on in the City. Commissioner Walshak asked how much revenue is expected from A.L.S. Tranports. Ms. Parker advised that it is projected at $120,000 this year. Jim Ness advised that in the ten weeks of operation, of the $150,000 billed, approximately $50,000 was collected. Ms. Parker pointed out the expenses associated with A.L.S. Transports. Ms. Parker advised that the Boynton Beach Fire Department does an excellent job; however, there is room for improvement. The Fire Department did not receive an exemplary rating from HRS, as indicated in their March 6, 1992 report. Five other cities in the County did. In addition, the Fire Department received a Public Protection Class 5 ranking from the State. On a scale of one to ten, Class 1 is considered the best. The Cities of Delray Beach and West Palm Beach received a Class 3 rating. Various other cities in Palm Beach County received a Class 4 ranking. Ms. Parker stated that the City allocated the revenues from the new contracts with Ocean Ridge and Briny Breezes and the A.L.S. Transport to the Fire Department. - 4 - HINUTES - SPECIAL CITY COMMISSION HEETING BOYNTON BEACH, FLORIDA APRIL 26, 1993 Ms. Parker advised that City staff has indicated that the financial condition of the City is long term and is not going to be remedied until the entire economic condition of the area, as well as the country, gets better. Ms. Parker stated that last year the City Commission adopted the improvement to the Fire Pension Plan at a cost of approximately $60,000 a year, which was not legally required. Ms. Parker referred to the May 1993 article in Money Magazine, which lists the ten best private companies with the best benefits in the United States. She pointed out that the City of Boynton Beach is very competitve with these com- panies. Ms. Parker advised that the City's benefit package is competitive and attrac- tive. She said the City is trying to keep benefits as competitive as possible while still balancing the needs of the citizens and keeping the millage rate low. PRESENTATION BY FIRE UNION Matthew Mierzwa of Kaplan & Bloom, P. A., distributed an outline of his presen- tation to the City Commission. He stated that Ms. Parker asked the City Commission to resolve issues that it cannot resolve legally. The City has already accepted the across the board wage increase {2 per cent January i and 2 per cent April 1) that was recommended by the Special Master. Therefore, the City cannot decide that issue today. Mayor Harmening informed Mr. Mierzwathat the City is aware of this and that in her letter, Ms. Parker does not take exception to Article 14, Sections 1, 2 and 3. Mr. Mierzwa also stated that Section 17.2 regarding the two-tier system was also already accepted by the City and, therefore, is not before the City Commission today. Mr. Mierzwa stated that according to the statute, the Commission is charged with resolving this impasse in the interests of both the public and the public employees involved. Mr. Mierzwa stated that during negotiations in May of 1991, the City made substantial pleas of poverty. The Union responded by signing a two year contract. For the first year of that contract, the Union accepted no cost of living increase and agreed to freeze the pay plan. In addition, they assisted the City in generating revenues. To help the City generate money, the Union actively supported the contracts with Briny Breezes, Ocean Ridge, and Gulfstream, and the A.L.S. Transport, without demanding negotiations. Mr. Mierzwa pointed out that the new contracts with Briny Breezes, Ocean Ridge, and Gulfstream, and the A.L.S. Transport will generate an additional $.5 million per year, utilizing the same manpower and without any increases. He stated that the Union did this in 1991 because they had an expectation that they would be dealt with fairly and that the step plan would be reinstituted in 1992. However, when 1992 commenced, the City proposed wage cuts. Mr. Mierzwa pointed out that Mr. Bremer never testified at the hearing and even though these matters were testified to by other people, the Union was not afforded Mr. Bremer's presentation prior to this evening. Mayor Harmening -5- HINUTES - SPECIAL CITY COI~ISSION #EETING BOYNTON BEACH, FLORIDA APRIL 26, 1993 believed that the Finance Director or the Assistant Finance Director who testified as to these matters was competent. Mr. Mierzwa spoke of the role that the Special Master's decision should play in resolving this impasse. He stated that in the Union's opinion, the Special Master's decision should be accepted by both parties. The Union is not happy with everything the Special Master decided. For example, the Special Master did not recommend the C.O.L.A. increase which the firefighters asked for, yet they accept her recommendation. The Union also did not agree with her reduction in the sick leave incentive program, but accepted it anyway because they believe in the process of resolving this dispute through the Special Master. Mr. Mierzwa stated that the City basically accepted what they won and rejected what they lost. He did not believe this promotes good relations. Mr. Mierzwa pointed out that the Union is not asking for a single benefit. It is merely asking that the present set of benefits with respect to step increases, lump sum longevity, sick leave, and vacation leave be maintained. In fact, insofar as the Union has accepted the Special Master's recommendation with respect to the conversion of sick leave incentive, the firefighters have actually accepted a reduction in benefits. Mr. Mierzwa stated that the firefighters believe that Article 14.2 {the step plan} and Article 14.3 {the longevity step} have been an integral part of attracting and maintaining quality firefighters and paramedics. He pointed out that the newly hired firefighters have left the City. It was the Union's understanding that the step plan would be reintroduced this fiscal year. Mr. Mierzwa felt the City could create a demoralized work force and litigation over the abolishment of the step plan. He stated that testimony from fire- fighters and negotiators indicated that they felt the City was being dishonest with respect to the step plan because of the discussions in 1991. He referred to the comparison charts of annual leave and longevity rate of pay, and stated that none of these charts make any sense without a step plan. Furthermore, the documents and charts the City presented are highly misleading because throughout negotiations the Union has been told that the City intends to abolish the step plan. Mr. Mierzwa mentioned the hazards and peculiarities of employment in this field. In his opinion, firefighers, EMTs, and paramedics are three of the most highly regulated professions in the State of Florida. The regulations change, imposing new requirements on firefighters, EMTs and paramedics. Qualifications include expansive physical and educational qualifications, and experience. At the Special Master Hearing, the Union presented substantial evidence with respect to increased dangers to which firefighters, EMTs and paramedics are exposed, the prime one being exposure to communicable diseases. Firefighters are also exposed to various forms of hazardous materials. Due to exposure to com- municable diseases and hazardous materials, firefighters and paramedics risk their lives every time they respond to a call. Mr. Mierzwa stated that the edu- cational requirements and the dangers of this field ofwork are increasing, while the salaries are being reduced. -6- NINUTES - SPECIAL CITY COI~ISSIOH NEETING BOYNTON BEACH, FLORIDA APRIL 26, 1993 Mr. Mierzwa stated that the firefighters and paramedics will never accept a two- tier system because they will be responding to the same calls, but receiving two different sets of benefits. He pointed out that firefighters work, eat, and train together, and live with each other twenty-four hours a day, every third day. He felt the introduction of a two-tier system would be extremely divisive and pointed out that the Special Master indicated that the City had not justified the introduction of a two-tier system for these benefits. With reference to Ms. Parker's comment during her presentation that split plans are common, Mr. Mierzwa stated that he was not aware of any split plan benefit programs for any firefighter group in the State of Florida. Mr. Mierzwa stated that at the end of February, the Special Master said there was money available to pay for the SPecial Master's recommendation. With respect to City Manager Miller's comment about uncollected taxes, Mr. Mierzwa pointed out that those were already budgeted for. On behalf of the firefighters and paramedics, Mr. Mierzwa asked the City Commission to adopt the Special Master's recommendations. He reiterated that if the City Commission adopts the Special Master's decision as is, there would actually be a net reduction in benefits. He said the Union is not asking for increases. The Union is asking the City to keep the step plan that has attracted and maintained qualified paramedics and firefighters. At this point in the meeting, Commissioner Walshak left the Chambers. PUBLIC AUDIENCE L1111an Steckler, 2601N. E. 3rd Court, stated that the Boynton Beach fire- fighters and paramedics are the best in the United States. She said we all should appreciate their services and felt they should be rewarded. Shirley Whlttenberg, Village Royale on the Green, stated that the Boynton Beach firefighters and paramedics always received first place ratings on everything. She wondered if the decline in ratings is due to their not getting enough help from the City. She stated that you do not get the best unless you pay for it. Ms. Whittenberg believes the City has the best and has to maintain it. Ms. Whittenberg also stated that she would like to see less animosity amongst the members of the Commission in addressing each other. She said the people intend to support the Commission and expect support from them in return. At this point in the meeting, Commissioner Walshak returned to the Chambers. Jeff Klnbacher, a Boynton Beach Firefighter/EMT, came from another City with seven years of experience. He came into this Department to follow a tradition of excellence and to be rewarded for it accordingly. At that time, there were 1,075 applicants and the City spent an incredible amount of money to invest in good employees. His starting salary was $22,000. Mr. Kinbacher felt his job is going nowhere and that he has no future. He stated that he cannot take care of his family and children without this pay plan. He reminded the Commission of the City's motto, which is "Our Business is Our People." -7- NZNUTE$ - SPECIAL CITY COHHI$$ION #EETING BOYNTON BEACH, FLORIDA APRIL 26, 1993 Mr. Kinbacher stated that a few years ago negotiations commenced and the Union helped the City in good faith. The Fire Department has increased its workload and responds to many more calls. The calls have become much more hazardous and the skills of the EMTs have been increased. Mr. Kinbacher stated that the fire- fighters of Boynton Beach are constantly training and upgrading. He said they are top level professionals dealing with people's lives and coming in contact with life threatening diseases every day. He asked for the Commission's sup- port. Bob Zlrrmernmn, 811S. W. 18th Court, implored the Commission to approve the Special Master's recommendation in view of the fact that there are monies in the City. He said he read in the Palm Beach Post that the A.L.S. Transports will contribute approximately $1.5 million to the City coffer in the next year. Mr. Zimmerman felt the paramedics and firefighters have done an excellent job. Robert Brown, 203 S. E. 26th Avenue, stated that the firefighters and paramedics face the most dangerous occupation in the country and are constantly exposed to hazardous body fluids and infectious diseases. If they become infected, it reduces their earning capacity. They risk taking diseases home to their fami- lies. Mr. Brown felt they earn every cent they get, and more. He fully sup- ported the Special Master's recommendations and asked the City Commission to vote in favor of them. Start Allen, of Sterling Village, felt it is imperative that we support these men. He felt some of the members of the Commission have already made up their minds. He strongly urged the Commission to support the recommendations of the Special Master. NO ONE ELSE WISHING TO SPEAK, MAYOR HARMENING DECLARED PUBLIC AUDIENCE CLOSED. The members of the Commission had their questions answered and made several com- ments. Commissioner Walshak stated that City Manager Miller's rejections to Articles 14.2, 14.3, 17.1 and 19.1 were based on long range management objectives for financial stability. He said the Special Master specifically indicated that, "It will be seen below that introduction of substantial changes in the compen- sation system is not recommended for the one-year reopener negotiations." Commissioner Walshak pointed out that we are looking at short-term negotiations. He also pointed out that the Special Master indicated that to make major changes in a negotiated package in a one year reopener does not make sense. Commissioner Walshak said it appears that the City will receive $50,000 per month from A.L.S. Transports. The Union and the firefighters pushed for A.L.S. Transports to benefit the City by generating additional revenue. Commissioner Walshak stated that most labor unions ask for more money; not more work. He felt A.L.s. Transports will generate more than the $100,000 necessary to follow the Special Master's recommendations on a short-term basis. Commissioner Katz did not know why the Special Master should be the judge of the City's budgetary constraints and asked if money is available. City Manager -8- MINUTES - SPEC[AL CITY CORN[SS[ON MEETING BOYNTON BEACH, FLOR[DA APRIL 25, 1993 Miller advised that there is no revenue source to appropriate for these bene- fits, and that by designating another revenue source, expenditures will have to be cut back. Commissioner Walshak asked if A.L.S. Transport money could be designated for this purpose. City Manager Miller advised that this money has to be deposited into the General Operating Fund. Commissioner Matson addressed Mr. Allen's comment under Public Audience and said she never comes into the Chambers with preconceived notions. She stated that the members of the Commission are the caretakers of the City and it is their fiduciary responsibility to take care of the health, safety, and well-being of every resident of the City. She added that this new system was set up as a blueprint for the City's economic future. Mayor Harmening asked what happens to the money already in the budget if the County loses the lawsuit presently pending and an injunction is granted against Greenacres and Boynton Beach. In addition, he wondered if the Union is challenging the status quo by its attempt to enter into the Federal arbitration system. Mr. Mierzwa said that was an attempt to enforce the status quo. Motion With regard to Article 14, Section 2, Commissioner Walshak moved to approve the recommendations made by the Special Master. Commissioner Katz seconded the motion. A roll call vote was Polled by City Clerk Sue Kruse. The motion failed 2-3. Mayor Harmening, Vice Mayor Aguila, and Commissioner Matson cast the dissenting votes. Motion With regard to Article 14, Section 3, Commissioner Walshak moved to approve the recommendations made by the Special Master. Commissioner Katz seconded the motion. The motion failed 2-3. Mayor Harmening, Vice Mayor Aguila, and Commissioner Matson cast the dissenting votes. Motion With regard to Article 17, Section 1, Commissioner Walshak moved to approve the recommendations made by the Special Master. Commissioner Katz seconded the motion. The motion failed 2-3. Mayor Harmening, Vice Mayor Aguila, and Commissioner Matson cast the dissenting votes. Motion With regard to Article 19, Section 1, Commissioner Walshak moved to approve the recommendations by the Special Master. Commissioner Katz seconded the motion. The motion failed 2-3. Mayor Harmening, Vice Mayor Aguila, and Commissioner Matson cast the dissenting votes. -9- MINUTES - SPECIAL CITY COI~ISSION MEETING BOYNTON BEACH, FLORIDA APRIL 26, 1993 Vice Mayor Aguila moved to accept the City's position regarding the impasse negotiations. Commissioner Matson seconded the motion, which carried 4-1. Commissioner Walshak cast the dissenting vote. ADJOURNMENT There being no further business to come before this CommisSion, the meeting properly adjourned at 9:55 P. M. ATTEST: Ci ty~l erk -~-~ -- ReCordihg Secretary (Four Tapes) THE CITY OF BOYNTON BEACH ~~_~L~ ,~~~ Vice Mayor -- *'~ Commissioner .~,~ Commissioner - 10-