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Minutes 08-30-11 MINUTES OF CONTRACT NEGOTIATION SESSION BETWEEN IAFF LOCAL 1891 AND THE CITY OF BOYNTON BEACH, HELD ON TUESDAY, AUGUST 30, 2011 AT 10:00 A.M. At FIRE STATION 5 BOYNTON BEACH, FLORIDA For the City: For the Union: Lori LaVerriere, Interim City Manager Dean Kinser, President Ray Carter, Interim Fire ChiefRobert Kruse, Vice President Julie Oldbury, Director, HR Thomas Murphy, Jr., Secretary Larry Lederhandler, Treasurer Adam Turey, Business Agent The meeting was opened at 9:58 a.m. followed by self-introductions. Lori LaVerriere , Interim City Manager, explained at the last meeting, the parties discussed allowing the opportunity to bargain on the next three-year contract wage element. Dean Kinser, President, Local 1891, commented the Union brought a proposal back for the City to review. Adam Turey , Business Agent, left the meeting to make copies of the proposal at 10:00 a.m. and returned at 10:02 a.m. Mr. Kinser reviewed the proposal using the standard MOU template. The “Whereas” clauses were standard and were already discussed. They related to wages and economic conditions. The modifications to medical insurance had already been discussed. The “Now, Therefore” provision contained a proposal that was previously put on the table and discussed earlier in the year. The existing contract already contained the provision about the Florida Legislative Enactment. Section 2 of the Union proposal had revised language and only specified the intent of the reopener was to negotiate the increases, the dates, and the time period. The wage adjustment addressed Article 14, Section 2.A. which pertained to the October 1, 2012 wage adjustment. Mr. Kinser explained the City had issues with language about taxable values and the percentages. The new proposal left those out because there were other contributing factors and revenue streams the City relied on for the budget. 1 Meeting Minutes IAFF Contract Negotiations Boynton Beach, FL August 30, 2011 The proposal allowed for discussion of the wage adjustment for year three assuming the City is faced with an economic hardship in their budget not limited to the decrease in final taxable values. This addressed the 2.5% increase. The proposal did not address the merit and it would be automatic on April 1, 2013. The dollar value of that was approximately $240,000, but it was contingent on staffing and salaries. This would affect six months of the 2013 budget. Ms. LaVerriere explained if the City had to fund the increase, which would be about $250,000, they would, but the monies would have to come from somewhere and she did not know what the budget would be next year. She acknowledged the Union had already cut a lot, but explained the Commission wanted the opportunity to look at the entire situation next year. She opined the City would still suffer a loss next year and recovery was about two or three years away. She hoped the Commission would keep the tax rate at 7.4 mills because the City still had a deficit of $300,000 at the 7.4 mills. She anticipated next year, the City would be in a similar situation. Ray Carter , Interim Fire Chief, wanted to ensure the Union understood the significance of what was occurring. He expressed if the Commission had to honor the pay raise without being able to discuss the issue, the Commission would likely make cuts within the Fire Department. Currently, six vacant firefighter positions were under consideration to be cut. If the Union’s proposal is brought forward and the Commission has to fund the raises, it was possible the City may close Fire Station No. 1 and lay off eight positions. Chief Carter emphasized all the City wanted to do was have the ability to discuss those two wage pieces. He stressed there was more at stake than just the pay raise. Response times and workloads would be affected, as would their ability to do other tasks. He reiterated if the City had to pay the raises, they would set off to find the money sooner rather than later. Ms. LaVerriere recognized issues had always been resolved. The City was not asking for a commitment or language that indicates they would not receive the raise; rather, they just want to discuss it. Other departments had already forgone their pay raises. As the contract stands, it was negotiated in good faith and the pay raise is in it until the City approached them to say they cannot afford it. The City has lost 200 employees in the past five years and Ms. LaVerriere hoped they would not have to lay people off. All departments lost positions. This year was worse for the City than last year. The City has less money and $6.2 million will only operate the City for three months. She was seeking to balance the budget and was only requesting the Union be agreeable to talk with them next year on both elements. It was hoped that in light of this information, the Union would reconsider its position. Mr. Kinser acknowledged the situation but pointed out the Union was looking at different aspects. They were stumbling because they gave up items earlier on. He commented 2 Meeting Minutes IAFF Contract Negotiations Boynton Beach, FL August 30, 2011 the City was not into its projections two years out. He pointed out every time someone was hired, they get the job, but no assurance of future benefits. He commented an employee on the job five years should not make the same salary as a new employee. That was an issue they were having with the April reopener. He commented they could not caucus on it, and it needed to be discussed with the members. He offered to let the City know of the members' determination by Friday. There was discussion of the timing of the budget hearings. Ms. LaVerriere commented attracting quality employees was important and the City positioned itself to be competitive in its recruiting through benefits such as wages and step plans. She would like to be able to reinstate those programs in the future. Larry Lederhandler, Treasurer, commented the firefighters have always helped whether there was an opener or reopener. The issue would occur in 18 months. Ms. LaVerriere explained the budget for that time period would be discussed in March or April of next year. The preliminary valuations are received June1 st and they begin the budget process in March. When the Union permitted a reopener, historically, they did not receive that benefit, they gave it up. Chief Carter and Ms. LaVerriere acknowledged it; however, the City Commission wanted an agreement stating they would discuss the matter. There was brief discussion about the Fire Assessment and the Commission's understanding of the millage rate. Ms. LaVerriere expressed it appeared the Commission was aware of the need to keep the millage rate at an appropriate level. After further discussion about the Fire and Police Department budgets and the City's budget, there was agreement the Union and the City would meet again when the Union made its decision. There being no further business to discuss, the meeting was closed at 10:35 a.m. o (li/wu;JlL (LAwUL, Catherine Cherry - 6 Recording Secretary 110830 3