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02-06-95 v MINUTES OF THE IMPASSE HEARING BETWEEN THE ATLANTIC BEACH CITY COMMISSION AND PROFESSIONAL FIREFIGHTERS OF JACKSONVILLE BEACH, INTERNATIONAL ASSOCIATION OF FIREFIGHTERS ( IAFF) LOCAL 2622 HELD IN CITY HALL AT 6:30 PM ON MONDAY, FEBRUARY 6, 1995. Present: Mayor Lyman T. Fletcher Commissioner Steven M. Rosenbloom Commissioner Suzanne Shaughnessy Commissioner J. Dezmond Waters, III Commissioner Robert G. Weiss And: City Manager Kim Leinbach Deputy City Manager James R. Jarboe City Attorney Alan C. Jensen Capt. John Campbell (Negotiator for city) City Clerk Maureen King Lt. James Hill (Representing Firefighters) The meeting was called to order at 6:45 PM by Mayor Fletcher who explained that this meeting was a continuation of the impasse hearing on Monday, January 30, 1995. Commissioner Weiss moved that the meeting be adjourned at or before 9:30 PM. The motion was seconded by Commissioner Rosenbloom and was unanimously approved. ARTICLE 28 - WAGES Mayor Fletcher pointed out the Special Master had indicated that mediation was an option that may be considered and he inquired whether both parties would be receptive to mediation at this time. Following brief discussion of the matter, it was felt that since the basic problem was one of funding, and since mediation would not be binding, it would be best for the City Commission to try to resolve the issues at impasse. Captain Campbell presented five-year financial comparisons of the city and union proposals which had been prepared by Finance Director Ann Meuse, a copy of which is attached hereto and made a part hereof. Capt. Campbell explained the cost to fund the city' s proposal had been budgeted for this fiscal year, while the union proposal would require additional funding of $40,443.91 . Lt. Hill explained the union' s proposal was intended to bring the firefighters into line with police officers ' salaries and he felt the city' s comparison did not reflect a comparison of comparable positions. Commissioner Rosenbloom suggested the possibility of using surplus funds which had resulted from the Fire Marshal vacancy, however, it was pointed out this would create an unfunded liability in future years. Page Two Minutes - Fire Department Impasse Hearing February 6, 1995 Following further discussion, Commissioner Weiss moved to accept the pay plan proposed by the city. The motion was seconded by Commissioner Rosenbloom. Discussion ensued and Commissioner Shaughnessy indicated a review of salary comparisons provided by the Florida League of Cities had indicated salaries were roughly in relation to population and it appeared that the salaries of Atlantic Beach firefighters were in line with cities with a population of approximately 25,000. Discussion ensued relative to overtime hours and it was pointed out only $5,000.00 had been budgeted for overtime and at the current rate of usage it appeared there would be approximately $20,000.00 shortfall. The question was called on the motion to accept the city' s proposal and carried on a vote of 3 - 2 with Commissioner Waters and Mayor Fletcher voting nay. ARTICLE 15 - HOURS OF WORK AND OVERTIME The situation with respect to Kelly hours was reviewed and Capt. Campbell confirmed that Kelly hours had been increased from twelve hours every twenty-eight days to eighteen hours every twenty-eight days due to a typographical error in the current contract. Since both the union and city had signed off on that section of the contract when the error was noticed, the union felt the error should be allowed to stand. The city was now asking for correction of the error. Commissioner Weiss moved to accept the city' s proposal to reflect that Kelly hours would be at the rate of twelve hours every twenty- eight days. Following further discussion, the questions was called and the motion failed on a vote of 2 - 3 with the Mayor and Commissioners Shaughnessy and Waters voting nay. Commissioner Waters moved to allow the language setting the rate of Kelly hours at eighteen hours every twenty eight days to remain. The motion carried on a 3 - 2 vote with Commissioners Weiss and Rosenbloom voting nay. ARTICLE 11 - PERSONAL LEAVE Lt. Hill explained the union was asking for one additional day of personal leave. He explained that an error had occurred in the city' s bookkeeping and this had resulted in some firefighters having a negative balance of personal leave. Capt. Campbell explained that because of the 24-hour shifts, fire- fighters worked 24. 5% more hours than other city employees; however, they earned 40% more personal leave hours than other city employees. It was the city' s position this was fair and they were opposed to granting additional personal leave. Page Three Minutes - Fire Department Impasse Hearing February 6, 1995 It was the union' s position that an additional personal leave day would compensate for the burden which the error had placed on the firefighters. Lt. Hill felt the cost of adopting the union's proposal would be minimal and urged the City Commission to grant their request. Commissioner Rosenbloom moved to adopt the union's proposal and approve an additional 24 hours personal leave per year. The motion was seconded by Commissioner Waters. Following further discussion, both motion and second were withdrawn. Commissioner Weiss moved to adopt the city' s proposal to continue personal leave at its present level. The motion was seconded by Commissioner Shaughnessy. Following further discussion, the question was called and the motion failed on a vote of 1 - 4 with Commissioner Weiss casting the single vote in support of the motion. Discussion ensued relative to union' s request to be charged sixteen hours for each twenty-four hour shift taken off and Commissioner Shaughnessy expressed concern with the requirement that it be made retroactive to October 1, 1992. Commissioner Shaughnessy moved to amend Article 11.1b to read as follows: "The Fire Chief or the Chief's designee shall have the discretion to grant or deny the use of personal leave hours. Personal leave must be taken in one (1) personal leave hour or more increments. Employees will be charged 16 hours for each 24-hour shift taken off on personal leave (P.L. ) , " and adopt Article 11.lb as amended. The motion was seconded by Commissioner Weiss. Following further discussion, the question was called and the motion failed on a 2 - 3 vote with the Mayor and Commissioners Rosenbloom and Waters voting nay. Following further discussion Commissioner Weiss moved to adopt the city' s position with respect to personal leave. The motion was seconded by the Mayor and carried on a vote of 3 - 2 with Commissioners Waters and Shaughnessy voting nay. Since all issues at impasse had been resolved, the Mayor indicated he hoped negotiations would go better next year, and declared the meeting adjourned at 10:40 PM. Lyman T. Fletcher MAYOR ATT E S T: ,f/76,, Maureen King CITY CLERK aka 4,w4)` - a/4 /w PROPOSED PAY PLAN INCREASES City 5 % Union 18 % MEMORANDUM Date: February 1 , 1995 To: Kim Leinbach, City Manager From: Ann Meuse, Finance Director Subject: Fire Union Impasse - City Proposal Vs. Fire Union Proposal As you requested in our meeting this morning, I have calculated the difference in the cost between the fire union pay plan proposed by the City and the proposal presented by the fire union to the City Commission Monday January 30, 1995. The City's proposal is a 2% cost of living retroactive to October 1 , 1994 and a step increase to the next closest step on the fire employee's anniversary date, guaranteeing at least an additional 1 %. This is consistent with the salary increases approved for the general employees, police and public works employees. The cost to fund the City's proposal has been budget for in the 1994- 1995 Annual Operating Budget. The Fire union has proposed another plan which would require an additional funding of $ 40,443.91 not included in the 1994-1995 Budget. And over a five year period the Fire Union proposal would cost the City an additional $242,815. (See attached chart) Following is a summary of the difference between the two plans: Salaries: Fire Union Proposal January 31, 1995 5351,770.22 City Proposal 2% October 1, 1994 - Annivers. Step 321,944.13 Unfunded Difference Between Union & City Proposed Salaries 29,826.09 Unfunded Difference in Overtime 2,652.00 (Based on 1,700 Overtime Hrs x $1.54 Avg Diff. in OTT Pay) Total Unfunded Difference in Salaries and Overtime City Proposal Vs Fire $ 32,478.09 Benefits: FICA ( 7.65%) 2,484.45 Pension ( 10.665%) 3,463.64 Workers Compensation (6.21%) 2,017.73 $ 7,965.82 Total Unfunded Difference Between City Proposal and Fire Union Proposal - Salaries, Overtime & Benefits $ 40,443.91 Fiscal Year 1995 Attached is a detailed copy of the Fire and City proposed pay plans and a 5 year projection of the cost of the pay plans. Please be advised that overtime in the Fire Control Department was budgeted for $5,000 for fiscal year 1994-1995. Fire Control has already incurred $12,000 in overtime to date and based on overtime hours last year will have a budget shortfall of approximately $20,000. This shortfall will have to be made up through Memo Page 2. transfers within the Fire Department budget or possibly funded from the $58,000 surplus tax revenues (increase in preliminary and final assessed values). Transfers for budget shortfalls are reviewed on a monthly basis and a mid year budget transfer will be proposed in March. Due to variances in budgeted revenues and expenditures a portion the $58,000 surplus may need to be considered as a possible funding source for shortfalls of the Fire Control overtime as described above. A pay plan is a recurring cost which increases exponentially each year as seen in the attached Five Year schedule. Recurring costs should be funded by recurring revenues, not one-time sources of revenues such as reserves or proceeds of sale of assets. The City receives 80% of its General Fund revenues from property taxes( 55%) and Intergovernmental Revenues (25%). Intergovernmental Revenues such as Sales Tax, ect. have only been increasing at a rate of 1 .5% a year. The impact of a pay plan must take into consideration costs in future years. With the minimal increase in Intergovernmental Revenues the City will be challenged with creating new revenue sources or looking to property taxes to fund increases in costs. CITY OF ATLANTIC BEACH FIVE YEAR COMPARISON OF FIRE UNION PROPOSAL AND CITY PROPOSAL FEBRUARY 6, 1995 FIVE YEAR 1994-1995 1995-1996 1996-1997 1997-1998 1998-1999 TOTAL FIRE UNION PROPOSAL WAGES Salaries 351,770 364,082 376,825 390,014 403,664 1,886,355 Overtime 27,540 28,504 29,502 30,534 31,603 147,682 Special Pay 30,000 31,050 32,137 33,262 34.426 160,874 Total 409,310 423,636 438,463 453,809 469,693 2,194,911 BENEFITS FICA 29,017 30,033 31,084 32,172 33,298 155,604 Pension 40,453 41,869 43,335 44,851 46,421 216,930 Health Insurance 24,500 25,358 26,245 27,164 28,114 131,380 Workers Comp. 23,555 24,380 25.233 26.116 27.030 126.314 Total 117,526 121,639 125,897 130,303 134,864 630,228 FIRE UNION PROPOSAL TOTAL WAGES & BENEFITS 52.6.836 545.275 564.360 584.112 504.555 2.825.139 CITY PROPOSAL WAGES Salaries 321,944 331,602 341,550 351,797 362,351 1,709,244 Overtime 24,888 25,635 26,404 27,196 28,012 132,134 Special Pay 30,000 30.900 31.827 32.782 33.765 159.274 Total 376,832 388,137 399,781 411,775 424,128 2,000,652 BENEFITS FICA 26,533 27,329 28,148 28,993 29,863 140,865 Pension 36,990 38,099 39,242 40,420 41,632 196,383 Health Insurance 24,500 25,235 25,992 26,772 27,575 130,074 Workers Comp. 21.538 22.184 22,850 23.535 24.242 114,350 Total 109,561 112,847 116,233 119,720 123,311 581,672 CITY PROPOSAL TOTAL WAGES & BENEFITS 48.6,E 504.984 516.014 531.494 547,439 2.582.324 DIFFERENCE BETWEEN FIRE UNION & CITY • $.40A48 $44.291 $48346 $52.51$ $57.117 $242.815