HomeMy WebLinkAboutExhibitSETTLEMENT AGREEMENT
THIS SETTLEMENT AGREEMENT (hereinafter referred to as the "Agreement") is made
and entered into by and between the WALTER E. HEADLEY, JR., MIAMI LODGE #20,
FRATERNAL ORDER OF POLICE, INC. (hereinafter "FOP"), and the CITY OF MIAMI
(hereinafter "City").
WITNESSETH:
WHEREAS, on September 21, 2010, the FOP filed an unfair labor practice charge with the
Florida Public Employees Relations Commission ("PERC"), styled as Walter E. Headley, Jr.,
Miami Lodge #20, Fraternal Order of Police, Inc. v. City of Miami, Case No. CA-2010-119
(hereinafter referred to as the "Charge");
WHEREAS, upon the entry of a Final Order by the Public Employees Relations
Commission in the above Charge on March 27, 2012, the Final Order was appealed, and after a
procedural history not necessary to be detail herein, the matter was subsequently remanded to
PERC for further action. On October 30, 2017, a back -pay proceeding was commenced, Case No.
BP-2017-013 (relates to CR-2017-001);
WHEREAS, the City denies all liability to the FOP arising out of the Charge and
subsequent litigation;
WHEREAS,. the Parties desire to avoid incurring further costs of litigation, and seek to
resolve all matters in controversy, disputes, grievances and causes of action between them related
to the City's 2010 declaration of financial urgency in an amicable fashion;
WHEREAS, the Parties have reached a full and final compromise and settlement of all
matters, causes of action, claims, grievances and contentions between them related to the City's
2010 declaration of financial urgency; and
NOW THEREFORE, in consideration of the mutual covenants and promises herein
contained and other good and valuable consideration, the sufficiency of which is hereby
acknowledged, and to avoid unnecessary litigation, contingent upon approval by the City of Miami
City Commission it is hereby agreed by and between the parties as follows:
1. This Agreement, and compliance with this Agreement, shall not be construed as an
admission by the City of any liability whatsoever, or as an admission by the City of any violation
of the rights of the FOP, its bargaining unit members, or any other person, or of any violation of
any order, law, statute, rule, regulation, duty, or contract.
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2. In full settlement of all claims between the Parties arising out of the Charge and
subsequent litigation, and contingent upon approval and ratification' by the City of Miami City
Commission, the City agrees as follows:
a) Effective the first full pay period upon ratification of this Agreement: to implement
three percent (3%) across the board increases to the bargaining unit members' pay
schedule effective October 1, 2018, October 1, 2019, and October 1, 2020, as set
forth in the October 1, 2018 through September 30, 2021 Collective Bargaining
Agreement; effective upon ratification of this Agreement: to uncap and restore the
City of Miami Firefighters and Police Officers Retirement Trust ("FIPO") pension
plan benefits that were in effect prior to September 27, 2010, for all bargaining unit
members who were vested in that plan before September 27, 2010; and effective
upon ratification of this Agreement, to implement in accordance with the October
1, 2018 through September 30, 2021 Collective Bargaining Agreement, the
restoration of the benefits identified in Articles 18.7, 18.8, and 18.12;
b) Effective September 30, 2021: to restore the FIPO pension plan benefits that were
in effect prior to September 27, 2010, for all other bargaining unit members, with a
cap on benefits of one hundred and twenty thousand dollars ($120,000.00), to be
implemented by the appropriate ordinance;
i. The FOP and its affected bargaining unit membership agree and accept as
the status quo the FIPO pension plan benefits modifications implemented
by ordinance on September 27, 2010, Ordinance No. 10-01091, up and until
the modification described in Paragraph 2., b), above, becomes effective.
c) Effective upon ratification of this Agreement: to grandfather the select group of
FOP retirees that the FIPO Trust began payment to in January 2018, and assume
the ongoing obligation for payments to those retirees based upon the restoration of
their pension plan benefits to those that were in effect prior to September 27, 2010;
and
d) In accordance with the following schedule: in settlement of the FOP's damages
claims in the litigation, to pay the total sum of thirty three million dollars
($33,000,000.00) in damages to the affected bargaining unit members' as described
below:
i. $15,500,000.00, after ratification of this Agreement by the City, within
sixty (60) days of the City's receipt from the FOP of the certified list of
affected bargaining unit members entitled to payment with the specific
amounts of each affected bargaining unit member's apportionment, as
further explained below;
ii. $2,917,000.00 on October 1, 2020;
iii. $2,917,000.00 on October 1, 2021;
iv. $2,917,000.00 on October 1, 2022;
I All references to ratification refer to the City of Miami City Commission.
2 "Affected bargaining unit members" shall mean those current or former bargaining unit members who were
employed by the City any month during the period September 28, 2010, through September 30, 2016 (the "relevant
period").
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v. $2,917,000.00 on October 1, 2023;
vi. $2,917,000.00 on October 1, 2024;
vii. $2,915,000.00 on October 1, 2025.
Payments made after October 1, 2018, shall not be subject to a prepayment penalty.
The City shall make checks payable to affected bargaining unit members in amounts to be
determined and certified to the City by the FOP. For each payment, above, the FOP will provide
the City with a certified list of the affected bargaining unit members to receive payments and the
corresponding amount of each affected bargaining unit member's payment based upon a formula
which contemplates pro-rata payments considering the months of service of affected bargaining
unit members during the relevant period, after which the City will have sixty (60) days to prepare
the checks. It is the responsibility of the FOP to provide an accurate pro-rata distribution list in
accordance with this Agreement.
For affected bargaining unit members who are currently employed by the City at the time
payments are made, the City shall distribute those checks. For affected bargaining unit members
who have retired, the City will arrange for the pension fund to distribute those checks. For affected
bargaining unit members who are not employed by the City at the time payments are made, the
City shall distribute those checks to the affected bargaining unit members by mailing them to the
last known address provided by the former employee. If checks mailed to the last known address
are returned and/or not cashed within ninety (90) days the FOP shall be notified and if, within
thirty (30) days thereafter, the funds are returned and/or not cashed, the funds will revert to the
City and be set aside for additional benefits for the bargaining unit.
The City and the FOP make no representations or warranties, express or implied,
concerning tax implications of any damage payments made pursuant to this Agreement. Any tax
obligation(s) arising from the foregoing payments will be the sole responsibility of the individuals
receiving the payments. The FOP agrees that all the payments referenced above constitute separate
consideration to which the FOP or the affected bargaining unit members is/are not otherwise
entitled and are in full and complete settlement of the claims in the litigation.
The parties agree and promise to mutually defend against any challenge that may arise from
any person or entity covered by this Agreement concerning the entry into this Agreement and the
retention, remittance and/or disbursement of any sums agreedto hereunder.' Each party shall bear
its own costs and fees other than as specified herein.
3. The FOP authorizes the City to take all necessary steps to dismiss all pending
litigation between the Parties related to the City's 2010 declaration of financial urgency with
prejudice, as applicable, including by executing, filing and serving a mutually agreed upon Notice
of Settlement and request for entry of a consent judgment, order, or decree with the Florida Public
Employees Relations Commission, and all other courts or administrative bodies within ten (10)
3 This does not contemplate the preclusion of an action or motion by the FOP to enforce the express terms of this
Agreement.
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days of the ratification of this Agreement. The FOP also agrees that any and all pending grievances
related to or arising out of the pending litigation and/or the City's declaration of financial urgency
in 2010 shall be deemed withdrawn with prejudice at that time.
4. The FOP, as the exclusive certified bargaining agent and party to the Charge and
subsequent litigation, represents and warrants that it is- fully authorized to enter into this
Agreement, including in accordance with the provisions of Chapter 447, Part II, Florida Statutes.
By entering into this Agreement, the FOP is voluntarily and forever waiving and discharging all
claims, lawsuits, charges or causes of action that it has or may have had on behalf of itself and its
bargaining unit members arising prior to the date of execution and ratification of this Agreement
relating to the City's declaration of financial urgency and resultant changes in 2010.
5. It is expressly understood by the FOP and its counsel that the commitments and
promises contained in this Agreement shall be in lieu of anything, including any and all amounts
to which the FOP, its bargaining unit members or any other persons, and their heirs and assigns,
or its attorneys are now, or may become, entitled to, based upon any claim whatsoever arising out
of the litigation with the City (including special, general or exemplary damages, attor-tey's fees,
interest, expenses, and costs actually incurred).
6. The parties represent and agree that they have thoroughly discussed all aspects of
this Agreement with their respective attorneys and have carefully read and fully understand all the
provisions of this Agreement, and that they are voluntarily entering into this Agreement. '
7. The Parties agree to the entry of a consent judo -tent, order or decree for purposes
of enforcement of the express terms of this Areernent which shall supersede all previous
agreements. Any breach of any tern, provision, or obligation of this Agreement by any party shall
entitle the other to seek enforcement of such term, provision or obligation in a court of law of
competent jurisdiction. The proper and only venue for any action, based upon any alleged breach
of any tern, provision or obligation of this Agreement, shall be in the 1 l th Judicial Circuit in and
for Miami -Dade County, Florida.
In the event of a violation of this Agreement, including, but not limited to, a failure or
refusal to implement the ordinance changes required herein, then the following provisions shall
apply:
a) The City shall first take all necessary action to correct and remedy its violation.
b) Should the City refuse to remedy its violation, then the parties agree that a lawsuit
may be brought in the Circuit Court for the Eleventh Judicial Circuit in and for
Miami -Dade County, Florida, against the City by the FOP to enforce the terms of
this Agreement. If a violation is established, any actual damages caused by the
City's violation shall be valued and calculated by an independent expert mutually
selected and appointed by the Parties, whose report shall be submitted to the Court
for purposes of seeking the entry of .an order returning affected bargaining unit
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members to the position they would be in had there been no violation of the
Agreement.
c) In addition to any remedies at law, mandamus may issue as appropriate to require
the City to take all necessary action to enforce the terms of this Agreement.
8. The parties agree that this Agreement does not constitute a waiver of any rights or
obligations under Chapter 447, Part II, Florida Statutes.
9. The parties agree that upon satisfaction of the obligations in Paragraph 2, above,
this Agreement shall have no further force or effect.
10. This Agreement constitutes the final and binding Agreement among the Parties and
may not be supplemented or changed without the express written consent of both parties. All prior
representations regarding this Agreement are hereby expressly disclaimed by both Parties.
11. Should any provision of this Agreement be declared or determined by any Court to
be illegal or invalid, the validity of the remaining parts, teens or provisions shall not be affected
thereby and said illegal or invalid part, term or provision shall be deemed not to be part of this
Agreement.
12. This Agreement may be executed by the Parties in duplicate so that each party may
hold a duplicate original. A facsimile signature shall be deemed to be an original.
IN WITNESS WHEREOF, the Parties hereto have executed and delivered this Settlement
Agreement as of the day and year set forth below.
Agreed to and Accepted by:
Dated: ( C'(Q i - vs-, Lois
Datec0 GG -4-
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