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Minutes 06-02-11 MINUTES OF CONTRACT NEGOTIATION SESSION BETWEEN IAFF LOCAL 1891 AND THE CITY OF BOYNTON BEACH, HELD ON TUESDAY, JUNE 2, 2011 AT 10:30 A.M. IN FIRE STATION #5, BOYNTON BEACH, FLORIDA For the City: For the Union: Mr. Kurt Bressner, City ManagerDean Kinser, President Sharyn Goebelt, Director, HR Robert Kruse, Vice President Larry Lederhandler, Treasurer Also present: Thomas Murphy, Jr., Secretary Adam Turey, Business Agent Ray Carter, Interim Fire Chief The meeting was opened at 10:34 a.m. Self introductions were made. Mr. Bressner advised as a follow up to Tuesday’s meeting, he took the draft MOU and made a minor modification to the MOU. He distributed the document with the highlighted change. He advised the modification was an addition at the “fourth whereas” which added an advisory that the City and the IAFF may have to meet should negotiations break down with the dental coverage. Since the Article in the contract covers all insurances, he wanted to add the language. Ms. Goebelt advised, however, she received confirmation from Cigna that there would be no increase and the plan would remain unchanged. Mr. Bressner further advised he added a new subparagraph to Paragraph 2 and attempted to capture the concept of triggering a wage and salary reopener, based on an external factor occurring, currently unknown, and added a decline of 4% or greater. In other words, when the City received the preliminary taxable value reports next May and the value goes down 4% or more, the City could request a reopener. It would not be automatic but it gives the City the opportunity. Mr. Bressner pointed out he was aware the current contract reopener language was for fiscal year 2011/2012. He asked the Union to consider, with conditions, having the trigger language put in so if the City had another bad year, it could be revisited. Mr. Kinser confirmed the language in the contract was specific to this year only. He felt that through the years, the Union had worked in helping the City, but did not want the City to lose sight of the fact with these openers, the Union was already giving up another year of raises. Now the City wanted another provision to mutually agree to re- open the last year of the contract. It had to be understood that the City had maintained the same millage rate for years and the same millage rate had reduced in value every year. The 6.72% millage rate last year and the same this year was the decline of the 4.3%. Those numbers do not equal the same value of revenues coming in. Mr. Kinser added because the values go down, the City had to make cuts in their department Meeting Minutes IAFF Contract Negotiations Boynton Beach, FL June 2, 2011 operations, programs, services, vehicle replacements, personnel and staffing, as well as pay and benefits. He felt the City had to realize that taking away from the employees could only go on for so long and that its budget cannot be balanced that way. Mr. Kinser advised the proposal presented from their side was similar to what Mr. Bressner presented. Mr. Bressner advised he spoke with Attorney Cherof and felt it was appropriate and necessary that there be a closed door session with the City Commission so if terms are agreed upon tentatively, it would be subject to their concurring with his presentation. Mr. Bressner advised he requested a closed session before the Commission meeting on Tuesday. Attorney Cherof also recommended that the agenda item be pulled until after the closed door session was completed. If terms could be agreed upon and the Union was able to ratify it, a special City Commission meeting could be called, if possible. He indicated he would also discuss the blue and white collar contracts. Those contracts have expired. Mr. Kinser indicated upon review of the proposal, there was also a minor modification made by the Union. He reviewed the terms of the change with all present which included language that the City and IAFF would agree to reopen Article 14, Section 2A of the 2012/13 CBA by July 1, 2012 if the final 2012 taxable property values by the Property Appraiser’s Office resulted in a deficit of 4.5% or greater reduction established for the City. The City would provide 30 days notice after the July 1, 2012 date. Mr. Bressner wanted confirmation that his understanding was if the taxable value comes in with a deficit of greater than 4.5%, based on July 1, 2012, the City could effectively ask the Union to discuss the salaries. Paragraph 2B was the opener language which becomes null and void in 2012, and which at that point in time the Union’s modification becomes effective. Section 2a addresses COLA only and there was no reopener on the April performance raises. This would only allow the City to reopen COLA October 1, 2012. Mr. Kinser indicated the theory to that was if the City was out of budget next year and there would be an impact to the City, those would not be paid. The COLA raise in 2012 would be a higher value raise because it was projected through the next twelve months, whereas the pay for performance raise is only budgeted for six months out of the calendar year of 2012/2013. The second caveat on the performance evaluation raise was not every member would receive that raise as some individuals have reached the top of their scale. The higher paid employees would not receive that raise. Mr. Bressner inquired where in the proposal it differentiates between COLA and merit raises for 2012/13. Mr. Kinser indicated it was written in Section 2a, and effective October 1, 2012. He also advised a clarification was made in Section 1 because of the 1B and 1C table charts. This was addressed in the MOU for clarification so that language from the MOU was not in conflict with what was written in the contract. Mr. Bressner suggested that on subparagraph 2, when discussing final taxable property values, the document be specific to state “the City of Boynton Beach for 2012”, rather 2 Meeting Minutes IAFF Contract Negotiations Boynton Beach, FL June 2, 2011 than “the City”, because otherwise it could be interpreted to mean for the whole County. Mr. Kinser indicated that was addressed in the MOU. Mr. Bressner suggested verifying that and rewording it so that it could not be misinterpreted and that the intent of the language is specifically for taxable value within the corporate limits of the City of Boynton Beach. Mr. Bressner queried Mr. Kinser that in the Union proposal, assuming the taxable value in the City increased by more than 4.5%, would they be willing to sit down and discuss the issue relative to the COLA increase and to have that subject go to negotiation and what was the rationale for wanting to make sure that members of the bargaining unit be considered for their merit increases, as opposed to the cost of living. Mr. Kinser indicated what the Union currently had was a compression of over four years of employees which causes issues when there was one person who was new and one person who has put in four years. As a supervisor, the performance evaluations are based on merit and there was a need to be able to reward employees for that performance. There was currently no mechanism to reward those employees who perform. Mr. Bressner, Ms. Goebelt and Chief Carter left the room for discussion at 11:04 a.m. and reconvened at 11:16 a.m. Mr. Bressner advised that he would take the proposal to the Commission for the closed door session. However, he felt confident it would not be accepted. It goes beyond the 4.5% number. It was more the fact that none of the other staff had received raises either and they had been in the same position as the Union members. He advised if the Union had some amended language they wanted to provide to cover the health care issues, he would present it to the Commission. Mr. Kinser advised the document provided could be used with some clearer language inserted. The meeting was closed at 11:22 a.m. Ellie Caruso Recording Secretary 3 Meeting Minutes IAFF Contract Negotiations Boynton Beach, FL June 2, 2011 than "the City", because otherwise it could be interpreted to mean for the whole County. Mr. Kinser indicated that was addressed in the MOU. Mr. Bressner suggested verifying that and rewording it so that it could not be misinterpreted and that the intent of the language is specifically for taxable value within the corporate limits of the City of Boynton Beach. Mr. Bressner queried Mr. Kinser that in the Union proposal, assuming the taxable value in the City increased by more than 4.5%, would they be willing to sit down and discuss the issue relative to the COLA increase and to have that subject go to negotiation and what was the rationale for wanting to make sure that members of the bargaining unit be considered for their merit increases, as opposed to the cost of living. Mr. Kinser indicated what the Union currently had was a compression of over four years of employees which causes issues when there was one person who was new and one person who has put in four years. As a supervisor, the performance evaluations are based on merit and there was a need to be able to reward employees for that performance. There was currently no mechanism to reward those employees who perform. Mr. Bressner, Ms. Goebelt and Chief Carter left the room for discussion at 11 :04 a.m. and reconvened at 11:16 a.m. Mr. Bressner advised that he would take the proposal to the Commission for the closed door session. However, he felt confident it would not be accepted. It goes beyond the 4.5% number. It was more the fact that none of the other staff had received raises either and they had been in the same position as the Union members. He advised if the Union had some amended language they wanted to provide to cover the health care issues, he would present it to the Commission. Mr. Kinser advised the document provided could be used with some clearer language inserted. The meeting was closed at 11 :22 a.m. ~~ llcx (: Ct'\)AiL t~ Ellie Caruso Recording Secretary 3