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Minutes 07-09-08 MINUTES OF CONTRACT NEGOTIATION SESSION BETWEEN IAFF LOCAL 1891 AND THE CITY OF BOYNTON BEACH, HELD ON WEDNESDAY, JULY 9, 2008 AT 9:30 A.M. IN THE FIRE/POLICE TRAINING ROOM, CITY HALL, BOYNTON BEACH, FLORIDA Present: For the City: For the Union: Bill Bingham, Fire Chief Ray Carter, Deputy Chief of Operations Sharyn Goebelt, Director Human Resources Dean Kinser, President Robert Kruse, Vice President Larry Lederhandler, Treasurer Miguel Reyes, Executive Board Member Adam Turey, Executive Board Member C. J. Julia, Business Agent Opening Bill Bingham, Boynton Beach Fire Chief, opened the session at 9:31 a.m. Chief Bingham advised it was the intent to discuss a proposal pertaining to Article 14, Wages, insurance issues and language for the reopeners. There were 20 IBBs logged to date and by the next meeting, he hoped to make the draft changes to the contract in both legislative format and in red. With regard to salaries, Chief Bingham believed years one, two and three were representing a 1.5% increase the first year, a 2.5% increase the second year, and a 2.5% increase in the third year of the contract, with the caveat that 0% would go into the supplemental insurance fund in the first year, with an additional .5% in the second year, and an additional .5% in the third year. Dean Kinser, Union President, agreed the figures presented by Chief Bingham were options. However, Mr. Kinser originally had looked at 1.5%, 2.5% and 3.5% and would review the figures in the comparison schedules. Chief Bingham noted the figures presented by Mr. Kinser would result in 2% going into the supplemental insurance fund in year one, 2.5% in year two and 3% in the final year of the contract. Combining the market adjustment raises with merit raises (assuming merit raises remain untouched at 5% every April), the total package would amount to 6.5% the first year, 7.5% the second year, and 7.5% the third year. Chief Bingham pointed out the figures were basic and were presented for purposes of discussion. He also stressed merit increases could not necessarily be universally applied, as they were dependent upon the successful completion of the evaluations. It was important to move ahead with Article 14, Wages during the next session or two, as a good deal of the contract hinged upon this particular article, and the more that could be accomplished, the sooner a proposal could be brought to the Commission through an Executive Session. Meeting Minutes IAFF Negotiation Session Boynton Beach, Florida July 9, 2008 Mr. Kinser requested Ms. Goebelt address the insurance issue. Ms. Goebelt provided the insurance exhibits, copies of which are on file in the City Clerk's office. Exhibit B provided benefit comparisons between the new Standard Plan 1748 recommended by the City and the four other plans currently offered. The Blue Options 1362 was offered last year primarily to help those with dependent coverage, and only 11 people enrolled. The majority of employees were enrolled in the 1748 Non-Standard, Blue Options, HMO or Blue Choice PPO. The differences in the Non-Standard and the Standard 1748 included an increase in the co-pays for physicians from $5 to $10, and specialists from $5 to $20. Prescription co-pays would also increase from $5, $15 and $30 to $10, $25 and $40. The mail-order (two co-pays) would increase from $10, $30 and $60 to $20, $50 and $80. Physician services at an ambulatory surgical center would increase from $5 to $20. Hospital inpatient in-network would increase from $0 to $250. Mr. Kinser asserted this was a substantial increase. Outpatient surgery was increased from $0 to $100 and the co-pay for ambulatory surgical increased from $0 to $50. Exhibit D itemized the costs for employees, spouses and children under the proposed Plan 1748, which totaled $1,059.75 monthly. From that figure, the sum of $475 would be deducted, less $.21, resulting in the sum of $584.54 multiplied by 12 and divided by 26. Exhibit E covered the City's contributions, and Exhibit F reflected the financial impact to employees. Ms. Goebelt believed the plan was favorable, and noted the increase in network physicians. She contended the increased deductibles prevented the loss of 11-15 jobs, and saved the City $555,000. She advised the rates were confirmed by Blue Cross. Pursuant to the request of Mr. Kinser, Ms. Goebelt would furnish the Union with a provider directory for the proposed 1748 Plan, as well as the online link. She recommended utilizing the online link, and telephoning the physicians to ensure they remained in-network, as the provider directories were not always up to date. New consultants would be coming on board as of October 1, 2008. Thereafter, it would be determined whether the City would solicit bids from other providers, as Blue Cross had been the City's provider since 1960. Ms. Goebelt advised the City would be holding a publicly-noticed insurance committee meeting, and for comparison purposes, she would request the consultants provide information on insurance plans for other municipalities as well as the private sector. She contended the proposed plan was outstanding, and in the current environment, a physician co-pay of $10 was reasonable. The two co-pay mail-order pharmacy benefit would provide a three-month prescription for generic prescriptions, while paying for only two-months. Open enrollment would be held as follows: Monday, August 11th, from 8 a.m. - 5 p.m., Tuesday, August 12th, from 1 p.m. - 5 p.m., and WedneSday, August 13th, from 8 a.m. _ 5 p.m. The vendors would be available to answer questions. Chief Bingham suggested 2 Meeting Minutes IAFF Negotiation Session Boynton Beach, Florida July 9, 2008 make-up sessions be offered for individuals unable to attend. Ms. Goebelt would look into this. She noted employees would be kept apprised regularly of proposed changes. Ms. Goebelt noted most retirees were enrolled in the PPO; however, the City would be offering Medicare-eligible retirees a Medicare Blue Plan. In this way, retirees' claims experience would not be included with the City's claims experience. This would bring the City's claims experience down in future years while providing a cost savings to retirees. A Letter of Intent was received from Blue Cross and was being reviewed by the Legal Department. The Fire Rescue Salary Survey Report was distributed. Mr. Kinser looked into the discrepancies. He noted the figures for Boca Raton were added in, and for 2007/2008, a COLA of 5% was shown for Boynton Beach. That figure should have been 4.62% for all classifications. Mr. Kinser would prepare a new report, with adjustments made for discrepancies. The report would reflect what the figures for the third year of the contract would be in comparison to the scale. The figures for 2007/2008 for West Palm Beach would be included, as their contract commenced in 2008. Chief Bingham suggested the report include the current COLA as well as the anticipated COLA, for comparison purposes. He noted columns in the report provided information regarding the respective step plans and the percentages in between steps. However, the columns did not include this information for Boynton Beach. Ms. Goebelt would insert this information and provide it to the parties. Chief Bingham addressed the Union's proposal previously presented with regard to Article 17, Sick Leave. Mr. Kinser indicated they were awaiting Chief Bingham's response. Chief Bingham advised he would take another look at the proposal; however, at this point, he felt there were sufficient incentives already in place, and believed the article should be left as it was. If he decided differently after reviewing the proposal, he would bring something back at the next meeting. An IBB worksheet for this article was distributed by the Union. Chief Bingham addressed the issue of the reopeners. As a result of the economy, pressure could be exerted to enter into a lesser term contract. While this had not yet been mandated, it was discussed at the City Manager's level. Chief Bingham believed everyone at the table would prefer a three-year agreement and should do everything possible to sustain the three-year process. A show of good faith could be to entertain language to reopen the contract for each of the next three years, based on economic criteria. Chief Bingham would bring back draft language to be discussed at the next meeting. It was his intent to avoid generic language that would allow someone to reopen the contract simply because they did not approve of other portions of the contract. With a longer-term agreement, in a year or two there could be changes at the City Manager's level and/or at the elected officials' level. It was imperative specific language be included in the contract with regard to reopeners and articles that could be impacted. Mr. Kinser agreed. Appropriate language could possibly sustain a three-year 3 Meeting Minutes IAFF Negotiation Session Boynton Beach, Florida July 9, 2008 contract. With a one-year contract, reopeners would really not be necessary, as the parties would be back at the table renegotiating at the end of the year. Reopeners accomplished the same thing, except restrictions would be placed on the specific articles to be negotiated if the economy remained the same, worsened or improved. If the economy improved, the issue would become moot and the integrity of the three- year contract would be maintained. The Union agreed to consider language to be brought back by Chief Bingham. The other issue regarding reopeners pertained to the fire assessment. Chief Bingham noted the fire assessment had been challenged for the past seven years (Boynton Beach Alliance v. City of Boynton Beach), and the lawsuit would likely be decided by the end of this calendar year or the first part of 2009. Chief Bingham would be bringing forward draft language for a reopener in certain provisions of the contract dealing with the potential impact if the City were to lose the case. The loss would create an immediate hardship for the City in terms of the $3.3M that would be collected as of October 1, 2008 if the assessment were to pass. Additionally, seven years of assessment monies would be in question at that pOint. The City believed it would prevail in the lawsuit. Along with the reopener, Chief Bingham would bring back draft language for this as well. The language would be null and void after the court's decision and after the new contract became effective. The fire assessment was a major mechanism in balancing the budget this year. Chief Bingham noted a separate budget had been developed based on the assessment, and a report would be available by the end of the week. The Union proVided a new IBB worksheet for Article 14, Wages pertaining to increases to paramedic pay, as Boynton Beach was falling behind with the comparables in other areas. Adjustments were made this year, and the Union sought further adjustments in 2010 changing the certification incentive pay for paramedics to $3.75 over the hourly base rate ($9,360 annual rate). The financial impact for each paramedic would be an increase of $1,248 per year. Mr. Kinser noted the Union relinquished an increase in paramedic salary for the first two years of the 2005/2006 contract. If the paramedic pay were not increased at some pOint within this contract, they would fall farther behind in the pay scale survey. Chief Bingham believed paying people different salaries for the same job created dissention in the ranks. He agreed to review the Union's proposal, along with the proposal provided by Ms. Goebelt. The Union provided an IBB worksheet pertaining to Article 17, Sick Leave. Currently an employee received 24 hours of additional vacation time for not calling in sick for six months, and the Union was desirous of increasing that to 36 hours. The Union wished to work with management in decreasing the amount of sick time used. The additional vacation hours would only be applicable if a vacation slot was available and as such, would have no impact on overtime. The Union proposed an earlier document which did not appear to have the influence anticipated. Chief Bingham understood rewarding employees for not calling in sick, but was not certain this would continue to reward the 4 Meeting Minutes IAFF Negotiation Session Boynton Beach, Florida July 9,2008 employees that were not calling in sick, while having no impact on those individuals who either abused or misused the system. Chief Bingham noted he would give this IBB consideration, as he had requested the Union provide options in addition to earlier proposals. This would be discussed further. There was no further discussion and the meeting was closed at 10:35 a.m. ~J)I- Stephanie D. Kahn Recording Secretary 5