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Minutes 10-06-93 #INUTES OF THE SPECIAL CITY COHHISSION HEETING HELD IH COHNISSION CHAHBERS, CITY HALL, BOYNTON BEACH, FLORIDA, .... ON WEDNESDAY, OCTOBER 6, 1993, AT 6:30 P. H. PRESENT Edward Harmening, Mayor J. Scott Miller, City Manager Jose Aguila, Vice Mayor James Cherof, City Attorney Lynne Matson, Mayor Pro Tem Sue Kruse, City Clerk Robert Walshak, Commissioner David Katz, Commissioner CALL TO ORDER Mayor Harmening called the meeting to order at 6:30 P. M. and welcomed all those in attendance. He advised that this meeting is in accordance with Section 56 of the City Charter of the City of Boynton Beach for the purpose of a public hearing reference impass'e to a collective bargaining agreement regarding wages for FY 1993/1994 between the International Brotherhood of Firemen and Oilers (IBF&O) and the City of Boynton Beach. He then opened the public hearing. PUBLIC HEARING Wand~ Stlmp$on, Business Agent for the IBF&O, stated that the IBF&O has asked the City to reinstate the 5 percent longevity step plan and to approve the 4 percent COLA for the employees. She said that for three years the workers have tried to be team players and do without their longevity steps; however, they feel the time has come to reinstate what they were expecting when they were hired. She further stated that in today's job market, employees are asked to give more to their companies with less employees to help. Ms. Stimpson advised that the Commission has an opportunity tonight to show the employees how they appreciate their dedicated service to the City. Htke Nelt110 of Facilities Management and Chief Steward of the IBF&O, explained that cost of living adjustments and the step plan mean incentive and opportunity to employees and that a fair and equitable cost of living increase gives an employee a way to keep his or her income up with rising costs. It also lets them keep their heads above water since there is no other pay incentive or step plan to do so. Mr. Melillo pointed out that over the past years, the IBF&O has tried to work with and understand the City's position with regard to pay raises and the step plan; however, incentive and pay opportunities have to be kept open. He felt the employees have no reason to strive to get ahead and that in light of the promotional situation as it stands right now, an employee has no reason to try to upgrade. Mr. Melillo pointed out that employees barely receive an increase in salary and yet Personnel wants to put them back a year in the supposedly nonexistent step plan. He did not believe an incentive and opportunity situation exists. R~ch~rd Stone of the Utilities Department and Steward for the IBF&O, stated that the occurrences over the last several years have seriously affected the morale and spirit of the members of the bargaining unit and the rest of the City employees, including supervision. Despite this general malaise, which is a - 1- #INUTES - SPECIAL CITY COt41'IISSION #EETING BOYNTON BEACH, FLORIDA OCTOBER 6, 1993 result of decisions made by the City Commission that have adversely affected the employees, the employees continue to perform their tasks in a diligent and pro- fessional manner. In FY 1991/1992, the 5 percent pay plan was frozen and the employees did not receive a cost of living adjustment. In FY 1992/1993, the 5 percent pay plan remained frozen and the employees received a 3.18 percent COLA, which did not nearly cover the losses of previous years. As of October 1, 1991, vacation leave and reimbursement for unused sick leave were reduced for new employees. Mr. Stone felt this makes the City less attractive to new 'employees. Mr. Stone pointed out that dependent medical coverage cost over $3,000 per year, which could have been partially offset by a more generous attitude toward the workers' wages. He also pointed out that the Adjusted Inflation Rate for Palm Beach County (3.3 percent) is higher than the National Rate (2.8 percent). The rate for the Miami/Fort Lauderdale area is 3.9 percent. Therefore, the IBF&O feels justified in asking for a 4 percent cost of living! adjustment. Mr. Stone stated that the IBF&O agreed with the City to freeze the 5 percent step plan and did not request a cost of living adjustment for FY 1991/92 because they tried to be patient and understanding of the City's financial difficulties at that time. They agreed to freeze the 5 percent step plan for FY 1992/1993 with the expec- tation of receiving an adequate cost of living adjustmenit for that fiscal year. Mr. Stone advised that based on past experience, the IBF&O did not bring in a special master this year because special masters seem to. have little influence over the City Commission. Mr'. Stone stated that the IBF&O has previously displayed a great deal of patience, understanding, and compassion with regard to the City Manager's and City Commission's positions on money and other matters. The employees have made sacrifices, believing that they would eventually be dealt with in a fair manner. Mr. Stone stated that the employees have made a concerted effort to save the City money. For example, the employees in the utility pumping stations have retrofitted two lift stations for approximately $12,000 each. If contracted out, it would have cost approximately $35,000 per lift station. In addition, the employees at the utility pumping stations have voluntarily agreed to monitor calls from their homes so that the City does not have to pay overtime. They receive absolutely no compensation for this. Since January 1, 1993, there was an average of 21.2 calls per month. Mr. Stone pointed out that there has been a reduction in the cost of overtime. In FY 1990/1991, overtime cost $42,512.04; in FY 1991/1992 it cost $22,345.69; and in FY 1992/93 it cost $17,469.88. In addition, in order to lighten the burden of Facilities Management, which is quite understaffea, the employees in Utilities have built an inventory room and renovated several offices which were in extremely shabby shape. They did this outside their regular job assignments. Mr. Stone felt it is time for the 5 percent pay plan to be reinstated. He said the employees believed that the Civil Service Rules and Regulations were their pay plan and means of advancement for the duration of their employment. They placed their trust in this City document. They felt they entered into a moral and ethical agreement with the City when they became employees. Mr. Stone stated that he has often heard from members of the City Commission that they HINUTES - SPECIAL CITY COI4HI$$ION #EETING BOYNTON BEACH, FLORIDA OCTOBER 6, 1993 have an obligation to the taxpayers of this City. Mr. Stone felt they have an equal responsibility to the employees of this City as well, since they are resi- dents and taxpayers also. In closing, he asked the Commission to show the employees the respect they deserve and treat them in a just and equitable manner. City Attorney Cherof advised that he, Bill Sullivan and Art Lee sat as the City's negotiating team. He distributed a brief summary and advised that the Union's first offer to the City was for a 7 percent COLA and a 5 percent step. This was rejected. The City's first offer was for a total increase of 3 percent (1 percent applied to the step plan and 2 percent as COLA). The City's last offer was 3 percent COLA on the anniversary date and also a longevity payment, which was a lump sum bonus in the first through tenth year of zero, eleventh through fifteenth year--$2§O, sixteenth through twenieth year--S500, and twenty- first year and up--$7§O. City Attorney Cherof advised that the negotiating team was drive~ most strongly by budgetary concerns as opposed to any other factor. They looked at the May Consumer Price Index from the American City and County Journal, which indicated that at that point in time the Consumer Price Index was at 3.1 percent. The September Summary from the American City and County Journal indicates the Consumer Price Index had dropped year-to-date to 2.8 percent. It was the intent through negotiations to move away from a merit step increase, which, in effect, is an automatic 5 percent increase on an annual basis for the City, and to move more towards a longevity bonus plan, which would reward employees based upon years of service. City Attorney Cherof advised that the maximum bargaining agreement the City can enter into with any bargaining unit is a three year contract. This allows for periodic review and gives the City the opportunity to adjust for what affects cities the most, which is the revenue side of the equation. With respect to the 3.9 percent Consumer Price Index for the Miami/Fort Lauderdale region, this was driven in large part by the hurricane damage in the South Florida area, which did not affect this area as greatly. City Attorney Cherof also stated that the agreement which binds the City legally is the collective bargaining agreement and not the Civil Service Rules and Regulations. These employees are members of a bargaining unit and the City has a duty to periodically negotiate on all issues, including wages, benefits, and conditions of employment. City Attorney Cherof advised that the reason the only issue before the City Commmission this year is wages, is because this is the third year of a three year collective bargaining agreement and that is the only issue that is open for negotiations at this particular time. City Attorney Che~of stated that the negotiating team stands by its recommendation which it thinks is consistent with budgetary concerns. Approximately 3 percent has been budgeted for salaries City-wide to employees. Anticipating the City Commission wished to keep in line with the budget, City Attorney Cherof stated that the negOtigatin§ team feels the plan they have outlined and their offer is the best one for the last year of this contract and possibly the best one to lead into future contracts as well. In response to Con~nissioner Katz, Mr. Sullivan advised that this contract affects approximately 125 to 130 employees, approximately 50 of whom would fall into the first through tenth year category, 10 or 15 of whom would fall into the eleventh to fifteenth year category, the bulk of the rest of the employees HINUTES - SPECIAL CITY COHHI$$ION HEETING BOYNTOH BEACH, FLORIDA OCTOBER 6, 1993 falling into the sixteenth through twentieth category, and less than 12 of whom would fall into the over twenty-first year and up category. Commissioner Katz pointed out that most of these employees would not be affected by the proposed longevity bonus. Commissioner Walshak felt it is a shame that the IBF&O, the Police Unions, and the Firefighters have gone three years without a reinstitution of their pay plan, which was part of the incentive that brought many of them to the City. He understood that financial conditions were very bad in FY 1990/91; however, he felt the City Commission had an opportunity this year to show appreciation to the employees for their longevity and service to the City but shirked their responsiblity. He stated that there were monies available for the employees who work very diligently for the City and help insure the citizens of the City the proper services which they are entitled to. He stated that the employees of the IBF&O are valuable employees and do a magnificent job. He apologized for not being able to correct this situation single-handedly. Hot t on Commissioner Walshak moved to reinstate the step pay plan and approve a 3 per- cent COLA increase for FY 1993/1994. Wl))le Wllfork said he has not had a raise in four or five years. He would like to see the employees in his department and all the other departments in the City receive a decent raise for a change. He felt the members of the City Commission are the only ones reaping the benefits. Mayor Harmening advised Mr. Wilfork that the City Commission did not receive a raise this year or last year. THERE BEING NO ONE ELSE WISHING TO SPEAK ON THIS MATTER, MAYOR HARMENING CLOSED THE PUBLIC HEARING. Vice Mayor Aguila reiterated that the members of the City Commission have not received raises and advised that they receive $350 a month. He stated that the City Commission has to make a decision regarding what and how the City is going to pay for what the employees deserve. There was no doubt in his mind that everybody in the City deserves a raise. He said that in the three years he has been on the Commission we have gone through some tough times; however, each year has been better than the year before. The employees received nothing the first year. They received 3.18 percent the second year, and 3 percent is being pro- posed this year. Vice Mayor Aguila stated that the nation is slowly and gra- dually getting out of the mess it put themselves in by spending money indis- r' c lminately in the 1980s, thinking that money was plentiful. He said the City Commission has to figure out a way to keep good employees and pay them the best we can while still providing the services that everybody wants. He could not support the step plan this year and felt 3 percent was the best the City can do this year. He reminded everyone that Tradewinds is costing the City almost $1,000,000 a year for twenty years. Mayor Pro Tem Matson reiterated that each year has been a little better. She was not satisfied with what is being offered to the employees and was willing to NINUTES - SPECIAL CITY CONNISSION NEETING BOYNTON BEACH, FLORIDA OCTOBER 6, 1993 negotiate a little further. She felt the employees deserve their step plan and hoped it would be reinstated soon; however, she pointed out that the City has a certain amount of money to work with this year. Mayor Pro Tem Matson asked City Manager Miller if there is enough money in con- tingency to give the employees a 4 percent COLA. City Manager Miller did not believe the $50,000 or $55,000 in contingency would be enough; however, he advised that there is $705,000 reserved for emergencies and $313,000 undesigna- ted funds. (These figures are unaudited.) Con~nissioner Walshak agreed with Vice Mayor Aguila that the years have improved. He reiterated that this Commission and this City could have had enough money this year to fund the program he is about to suggest, but it was their collec- tive decision not to do so. Notion Corr~nissioner WalshaH moved to reinstate the step pay plan and give the employees a 3 percent COLA increase. Commissioner Katz seconded the motion. City Attorney Cherof pointed out that the motion is incomplete. He said the step plan has been 5 percent in the past and the motion needs to be clarified to indicate the percentage the Commission intends to fund it at. Commissioner Walshak did not feel clarification was necessary and stated that the step pay plan he was addressing is the one that is on the books in this City and has been for a long time. Mayor Harmening asked Commissioner Walshak if his intention is to fund the step plan at 5 percent. Commissioner Walshak answered in the affirmative. Commissioner Katz was in complete agreement with Commissioner Walshak that this City Commission could have funded the proper raises for the workers of this City, He felt we need to look for ways to generate revenue and not cut back. He also felt that there are City employees who are receiving huge paychecks who should not have participated in the cost of living adjustment in order to give the employees on the lower end of the ladder a higher percentage. The motion failed 3-2. Mayor Harmening, Vice Mayor Aguila and Mayor Pro Tem Matson cast the dissenting votes. Notion Mayor Pro Tem Matson moved to give the employees 4 percent cost of living. Commissioner Walshak seconded the motion. City Attorney Cherof advised that this is an incomplete motion. It does not address the second part of the article which the Commission is required to resolve through impasse, which is the merit plan. -5- MINUTES - SPECIAL CITY COMMISSION MEETING BOYNTON BEACH, FLORIDA OCTOBER 6, 1993 The motion was withdrawn. Notion Mayor Pro Tem Matson moved to give the employees 4 percent COLA and freeze the merit step for one year, The motion died for lack of a second. Notion Vice Mayor Aguila moved to offer the employees a 3 percent COLA and freeze the merit plan. Mayor Harmening passed the gavel and seconded the motion. The motion failed 3-2. Mayor Pro Tem Matson and Commissioners Walshak and Katz cast the dissenting votes. Notion Commissioner Katz moved to give the employees a 5 percent COLA and freeze the merit step plan, although he was not in favor of freezing the merit step plan. Commissioner Walshak seconded the motion, which failed 3~2. Mayor Harmening, Vice Mayor Aguila and Mayor Pro Tem Matson cast the dissenting votes. Notion Commissioner Katz moved to give the employees a 4 percent COLA and freeze the merit step plan, effective October 1, 1993. Mayor Pro Tem Matson seconded the -- motion, which carried 3-2. Mayor Harmening and Vice Mayor Aguila cast the dissenting votes. Mayor Harmening announced that the impasse is resolved and the employees will receive a 4 percent COLA, effective October 1, 1993, and that the merit step plan will remain frozen. A man in the audience asked how long the step plan will remain frozen. Mayor Harmening advised him that it will remain frozen until such time as money is available, at which time the City Commission would consider reinstating it at some percentage. Vice Mayor Aguila stated that the Con~nission makes decisions sometimes not knowing the financial implication down the line. He believed this is what Americans have been doing for years, particularly in the 1980s when money was pouring in. He said this does not mean the employees are not valued or do not deserve it; it means it is getter tougher each year to pay for it and still pro- vide services. Com?issioner Walshak advised the man in the audience that the contract expires at the end of this third year. -6- MINUTES - SPECIAL CITY COl~I$$ION MEETING BOYNTON BEACH, FLORIDA OCTOBER 6, 1993 ADJOURNMENT At 7:19 P. M., Mayor Harmening announced that the impasse is resolved and the meeting is adjourned, THE CITY OF BOYNTON BEACH Mayor City,Clerk ~ /.t/S~" Commissioner Recordfng Secretary Commissioner (One Tape) N