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HomeMy WebLinkAboutR-91-0598J-91-736 8/27/91 RESOLUTION NO. A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO A MEMORANDUM OF UNDERSTANDING, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, BETWEEN THE CITY OF MIAMI AND THE FRATERNAL ORDER OF POLICE, LODGE NO. 20, FOR FISCAL YEARS 1991 THROUGH 1993; SAID MEMORANDUM OF UNDERSTANDING TO PROVIDE FOR A ZERO PERCENT (0%) ACROSS-THE-BOARD INCREASE IN WAGES FOR FISCAL YEAR 1991-1992 AND A FOUR PERCENT (0) ACROSS-THE-BOARD INCREASE FOR FISCAL YEAR 1992-1993. WHEREAS, the City of Miami and the Fraternal Order of Police, Lodge No. 20, the collective bargaining agent for members in Lodge No. 20, have entered in negotiation concerning across- the-board increases on wages; and WHEREAS, the Fraternal Order of Police, Lodge No. 20, has agreed to a zero percent (0%) across-the-board increase for Fiscal Year 1991-1992 and a four percent (4%) across-the-board increase for Fiscal Year 1992-1993; and WHEREAS, it is advantageous for the City of Miami to authorize the City Manager to enter into a Memorandum of Understanding with the Fraternal Order of Police, Lodge No. 20, r concerning wages upon the expiration of the current labor s ■ agreement; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The recitals and findings set forth in the Preamble to this Resolution are hereby adopted by reference thereto and incorporated herein as if fully set forth in this Section. Section 2. The City Manager is hereby authorized to enter into a Memorandum of Understanding, in a form acceptable to I the City Attorney, between the City of Miami and employee i i organization known as the Fraternal Order of Police, U C7 Lodge No. 20, for the period of October 1, 1991 through September 30, 1993 to provide for a zero percent (0%) increase for Fiscal Year 1991-1992 and a four percent (4%) across-the- board increase for Fiscal Year 1992-1993. Section 3. This Resolution shall become effective immediately upon its adoption. PASSED AND ADOPTED this 5th day of Septembgr1 , 1991. SUARE2�', MAYOR ATTE MATTY HI CITY CLERK PREPARED AND APPROVED BY: M N IRIZARRI NTT TTORNEYAIAIA APPROVED AS TO FORM AND CORRECTNESS AS OF AUGUST 30, 1991: JO G ERNANDEZ CI Y ATT NEY RI:gb:bss:M2459 91598 2 3 CITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM TO Honorable Mayor and Members of th City Commission FROM Cesar H. Odio City Manager DATE August 28, 1991 FILE. SUBJECT Pension Ordinance Amendments and Associated Reso- REFERENCES .1 u t i o n s ENCLOSURES S e v e n (7) As a result of discussions among the City's four bargaining units and the administration during the annual budgetary preparation cycle, the administration is recommending the City Commission's approval of permanent modifications to the City's pension Ordinance on an emergency basis and additional associated legislation. ing The reason for the emergency onlegislation 10ctober 15 1991ianddthe commencement of the FY'92 budget favorable impact that ll the proposed upon theinCityss and budgetairymand nt Incentive Program Produce financial position. The Administration Recommend Legislative Items Relating Bargaining Agreements The legislative items follows: Approval of the Attached Seven (7) o Pension Benefits and Collective requiring your approval are as (A) the attached two (2) emergency ordinances by a four - fifths vote concerning Article IV. Pension and Retirement Plans of the Miami Code, (B) the attached two (2) associated resolutions modifying the collective bargaining agreements with the International Association of Fire Fighters and the Miami General Employees/AFSCME, (C) the attached two (2) resolutions specifying across-the- board increases for FY192 and FY'93 for the Fraternal Order of Police and the Sanitation Employees' Association, and (D) the attached one (1) resolution declaring a one-time election by the City which is required 1986 prior Taxo ReformSeptember 30, 1991 under Section 415(b10c) of the to protect the method of accrual of benefits of employees covered by the City's pension plans. 91- 598 Mayor and Members of the City Commission Page 2 One emergency ordinance amends the provisions of the General Employees' and Sanitation Employees' Retirement Trust (GESE) and the other amends the provisions of the Fire Fighters' and Police Officers' Retirement Trust (FIPO). The proposed amendments to the pension ordinance primarily concern eligibility requirements and pension benefits. The proposed amendments which affect both pension trusts are enumerated as follows: Proposed Modifications to the General Employees' and Sanitatio Employees Retirement Trust (1) the retirement allowance percentages for general and sanitation employees will be increased to 2.25% and 2.75% from 2.0% and 2.5% respectively, (2) the Rule of 75 for general and sanitation employees will be reduced to the Rule of 70, (3) the Rule of 75 eligibility exclusion far employees hired after May 16, 1984 will be eliminated, and (4) the minimum service period for general employees and sanitation employees under the Rule of 70 will be established as 10 years. Proposed Modifications to the Fire Fighters' and Police Officers' Retirement Trust (1) the retirement allowance percentage for fire, rescue and police employees will be increased to 2.75% from 2.5%, and (2) the average final compensation for fire, rescue and police employees will be the average annual earnabie compensation during the highest one (1) year of membership service; not including overtime. Representatives of the City's Four Bargaining Units Have Agreed to Defer Cost of Living Increases in Exchange for the Propose In exchange for these benefits, the representatives of the City's four bargaining units have agreed to defer 4% across-the- board salary increases effective the first full pay period following October 1, 1991 to the first full pay period effective October 1, 1992; assuming ratification by their respective memberships. The deferred amount of the 4% across-the-board increase is $5.7 million. In addition, the City's bargaining Mayor and Members of the City Commission Page 3 units have agreed in concept to the necessity of "downsizing" the City's operations in FY'92. ng units As offd is daprote, thensFofMthe npermanent pension d the FOP n�ordinance have rat modifications and the Retirement Incentive Program. tins First YeRetirement Pemanent Benefit dj re ate to5,million and the The estimated combined first year's savings from these permanent benefit modifications and the tIncentive roximately$5million; Program for both pension trusts will bavoPdances, the 4% across- theuboardasalarylincreaseon adeferral,y and a "downsizing" of City government will substantially offset increased pension -related and program costs. U date on The Retirement Incentive Pro ram Insofar as the Retirement Incentive Program is concernebe the administration has identified 532 employees that may eligible to retire on or before October 3, 1991. These employees GESE are members of their respective retirement tfrusfour�bargaining FIPO, or ICMA, and are members of the City s managerial/confidential, and units and the unclassified, executive employment groups. Foster According to the City's actuarial consultant, A. Higgins & Co., Inc., the national average for approximatepartly tcip do i retirement incentive programs is ses the administration has percent. For budget projects°ercentosparticipation level as a assumed a thirty-five (large number of eligible employees and result of the currently the program id ethcombinotionsed permanent modificationsof the Cite to tthenpension prog ordinance. Resolutions Attendant to Pension Ordinance Modifications The attached resolutions principally ro isions oofhecollective emoranda of understanding modifying specific bargaining agreements with the City s unions. These provisions are as follows: of oDeferral 1992 for October the ASCMEmembeship r, increase tross'the-board (1) M Mayor and Members of the City Commission Page 4 (2) Deferral of the 4% October 1991 across-the-board increase to October 1992 for the IAFF membership, (3) Establishing a 0% across-the-board increase effective October 1991 and a 4% across- the - board increase effective October 1992 for the FOP membership, and (4) Establishing a 0% across-the-board increase effective October 1991, a 4% across-the-board increase effective October 1992, and a tipping fee savings bonus for the SEA membership. Finally, a resolution is recommended for your approval which "grandfathers" protection and accrual of pension benefits for the City's employees. The resolution must be approved by September 30, 1991 to comply with the provisions of the 1986 Tax Reform Act. If you require additional information or clarification, please contact me at your earliest convenience. cc: Executive staff 44 CITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM Members of the City Commission DATE : August 23,r 1991. FILE: SUWECT : Special Commission , Meeting September S, 1991 'M : Xavier L . Suarez / REFERENCES: Mayor ENCLOSURES: As a result of considerable discussions among the City's bargaining units and the administration, certain retirement benefit enhancements have been proposed which will require the passage of several legislative items: Two emergency ordinances amending the pension retirement plans of the Miami code, two resolutions modifying the current collective bargaining agreements with the International Association of Firefighters, and the Miami General Employees/AFSCME, two resolutions specifying across-the-board increases for fiscal year 1992 and fiscal year 1993 for the Fraternal Order of Police, and the Sanitation Employees Association,. and one resolution declaring a one-time election by the City which is required prior to September 30, 1991 under Section 415(bl0c) of the 1988 Tax Reform Act in order to protect the method of accrual of benefits of employees covered by our pension plan. It is my intention to bring this emergency legislation before the City Commission at the September 5, 1991 Commission meeting due to its impact on the impending commencement of the FY192 budget. A package of proposed legislation will be forwarded to you shortly. ccs Cesar H. Odio, City Manager 91- 598 .j . V•L....