Loading...
Minutes 07-11-11 MINUTES OF CONTRACT NEGOTIATION SESSION BETWEEN IAFF LOCAL 1891 AND THE CITY OF BOYNTON BEACH, HELD ON TUESDAY, JULY 11, 2011 AT 9:00 A.M. IN CITY HALL, CONFERENCE ROOM B, BOYNTON BEACH, FLORIDA For the City: For the Union: Lori LaVerriere, Interim City Manager Dean Kinser, President Ray Carter, Interim Fire ChiefLarry Lederhandler, Treasurer Julie Oldbury, Director, HR Thomas Murphy, Jr., Secretary Adam Turey, Business Agent The meeting was opened at 10:32 a.m. followed by self-introductions. Ms. LaVerriere explained the meeting was to address outstanding issues with the Memorandum of Understanding. Dean Kinser , President, Local 1891, recalled the Union had submitted three proposals. He acknowledged the City was in a situation due to the reopener in the Collective Bargaining Agreement for the October 1, 2011 and April 2012 wage adjustments. In the past, the Union deferred the raises, which were collectively bargained, with the position that the raises would be available at that point in time, but there were unforeseen economic issues. He stated the Union was not looking to defer the raises, rather they agreed to freeze the wages and not take them for the 2011/2012 budget year. The Union already addressed the issues of insurance adjustments and had a verbal agreement regarding CIGNA. They also held discussions for vision and dental benefits. The contract provided for plan modifications, and both parties could review the modifications. Ray Carter , Interim Fire Chief, reviewed this proposal differed from the last proposal in that it had no provision for a reopener in 2012/2013. Previously, the Union wanted a reopener in the event a deficit in property values occurred. Mr. Kinser responded the Union had discussed reopening the 2012 COLA, but was under the impression the City did not like any of the language they brought forward. They were budgeting for 2011/2012 and not the future. This year, the City approached the Union, due to the economic climate and the reduction in ad valorem taxes and could not pay the negotiated raises. The Union had to come forward and accept that they would not take them. 1 Meeting Minutes IAFF Union Negotiations Boynton Beach, FL July 11, 2011 Mr. Kinser pointed out the Union did not carry over deferment of the old contract to the new contract. The Union wiped it clean and gave up longevity and carry-over raises. He questioned whether the City would return longevity. The question was if the City’s situation in 2013 remained in the current state, how the City would approach the Union about pay raises without a reopener. The City was requesting they be able to approach the Union about foregoing pay raises again, if needed. It was just a matter of reopening the article to discuss it, if the need is there. Ms. LaVerriere explained in order for the City to recover, the City should at least use the rollback rate and be consistent with it for the next several years. The Property Appraiser has indicated residential revenues have bottomed out and the commercial and industrial base needs to catch up. Accordingly, those sectors would yield a reduction in revenues. Ms. LaVerriere expressed her belief that recovery was on the horizon but next year would not be much better than this year. She commented her beliefs were based on the economy beginning to provide better revenues and good decisions being made on the millage rate. This year the City is relying on $21 million dollars to balance the budget out of transfers from other funds. In the past, the City relied on $4 million and the $21 million was unheard of. The City needed to start adjusting taxes while keeping revenues down. Ms. LaVerriere stated personnel services comprised 81% of the budget. The operating budget for the entire General Fund is only $10 million. The Union’s assistance in this regard was appreciated and Ms. LaVerriere hoped to be able to discuss the matter again this year. Mr. Kinser noted the Union was under no obligation to discuss the issue, but emphasized they had always worked with the City. He agreed that if the circumstances were that bad, they would discuss the issue again even at the halfway mark, for next year on the reopener. At the end of this three-year contract, which is the back six months of the 2012/2013 fiscal year, there would be normalcy and they could then move forward in a progressive manner. The entire contract was open for negotiation. Ms. LaVerriere sought clarification. The reopener was settled for the second year of the contract for insurance, wage and merit freeze. The City requested a reopener for the third year, which was not in the contract to begin with, and the Union agreed to discuss it. The Union’s proposal tied the reopener for the third year, and Ms. LaVerriere inquired if the merit side would kick in and the City would discuss wages based on valuations. Mr. Kinser responded the COLA was open for discussion based on valuations and was open straight across. The pay for performance evaluation portion was in the 2013 year and that was what the Union would move forward. He acknowledged not everyone would receive that raise. The cost was less than 5%. 2 Meeting Minutes IAFF Union Negotiations Boynton Beach, FL July 11, 2011 Chief Carter explained the COLA would be about $270,000 to $300,000. The 5% April 1 st raise, because it was only for half a year, was equal in dollars, but when continuing the cost forward, it was not the same. Some employees receive a stipend because their salary topped out, so it would not raise their rates. It was similar to a bonus. Alternatively, because the wages were frozen since 2009, the numbers the Union had projected at 5% was about $236,000. The Department lost several individuals in 2008/2009 through retirement and resignations. Additionally, there are seven vacancies and individuals currently in the DROP plan that are leaving who had topped out salaries. If the conversation was continued, it was to tie language into the COLA side of it, but the merit would be automatic. The Union wanted the COLA because it would start October 1, 2012. If the City had budget issues next year, the 12-month COLA would have the first impact on the budget. The evaluations were only a six-month provision and it would not raise wages for some employees. As a result, the Union's current proposal did not include the language and it reflected their position all along. The Union was willing to meet the City half way and if there were major issues, they would be willing to address them in 2012/2013. He noted the negotiations for the new contract would begin February 2013. The MOU reflected the members agreed to the insurance changes, the wage, COLA and merit freezes for year two and no reopener for year three. The IAFF was backing off on language relating to the valuations on the COLA side. Mr. Kinser left the meeting at 10:58 a.m. and returned at 10:59 a.m. The proposal would have to go before the City Commission and Ms. LaVerriere wanted to address the matter quickly. The proposal called for freezes on COLA and Merit for 2011/2012 and the 5% that was in there would be removed completely. The only thing to discuss in 2012/2013 was insurance. There was discussion whether it was legally permissible to discuss provisions without a reopener; however, it was recognized that if both parties agreed to sit down, issues could be discussed and Mr. Kinser pointed out the Union had done so in the past. Additionally, if any further explanation was needed, he was available to speak with the Commission. The Union wiped off two years of deferments and the slate was clean so there were no issues. There was no further business to discuss and the meeting was closed at 11 :06 a.m. ;; GI I. ,I uL- L_(lllili~ ~kW 0' Catherine Cherry Recording Secretary 071111 3