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Home My WebLink AboutR-91-0599J-91-737 8/27/91 J :1 - J 9 9 RESOLUTION NO. A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO A MEMORANDUM OF UNDERSTANDING, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, MODIFYING THE EXISTING COLLECTIVE BARGAINING AGREEMENT BETWEEN THE CITY OF MIAMI AND THE INTERNATIONAL ASSOCIATION OF FIREFIGHTERS, LOCAL 587, IN EFFECT FOR THE PERIOD OF OCTOBER 1, 1990 THROUGH SEPTEMBER 30, 1993, ADOPTED PURSUANT TO RESOLUTION NO. 91-346, ON MAY 9, 1991, BY THE CITY COMMISSION; SAID MODIFICATION TO PROVIDE FOR A ZERO PERCENT (0%) ACROSS-THE-BOARD INCREASE IN WAGES FOR FISCAL YEAR 1991-1992 AND A FOUR PERCENT (4%) ACROSS-THE-BOARD INCREASE FOR FISCAL YEAR 1992-1993; AND FURTHER TO MODIFY THE REOPENER CLAUSE AS SPECIFIED IN THE 1990- 1993 LABOR AGREEMENT, ARTICLE 41 - TERMINATION AND MODIFICATION WITH THE EXCEPTION OF ACROSS-THE-BOARD INCREASES. WHEREAS, the City of Miami and the International Association of Firefighters, Local 587, the collective bargaining agent for members in Local 587 have entered in negotiation modifying across-the-board increases on wages; and WHEREAS, the International Association of Firefighters, Local 587, has agreed to forego a four percent (4%) increase for Fiscal Year 1991-1992 and 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, the International Association of Firefighters, a Local 587, has further agreed to modify the reopener clause in OR the 1990-1993 collective bargaining agreement as specified in the 1990-1993 labor agreement, Article 41 - Termination and Modification with the exception that negotiations shall not include wage increases; 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 the City Attorney, between the City of Miami and the employee organization known as the International Association of Firefighters, Local 587, 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 (0 ) across-the-board increase for Fiscal Year 1992-1993 and to reopen negotiations as set forth in Article 41 - Termination and Modification with the exception of wage increases. Section 3. This Resolution shall become effective immediately upon its adoption. PASSED AND ADOPTED this 5th day of ATTES . MATTY HIRAI CITY CLERK PREPARED AND APPROVED BY: RAMON IRIZARR7 ASSISTANT CI Y ATTORNEY APPROVED AS TO FORM AND CORRECTNESS as of August 30, 1991: s - 2 tem er 1991. SUAREZ, MAYOR 91-- 599 f 'i t I t i CITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM To Honorable Mayor and Members DOTE August 28, 1991 FILE: of th City Commission SUBJECT Pension Ordinance Amendments and Associated Reso- FROM REFERENCES .l u t i o n s Cesar H. Odio City Manager ENCLOSURESSeven (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. The reason for the emergency legislation is the impending commencement of the FY'92 budget on October 1, 1991 and the favorable impact that the proposed ordinances and Retirement Incentive Program will produce upon the C-ity's budgetary and financial position, The Administration Recommends_ Approval of the Attached Seven (7 Legislative Items Relating to Pension Benefits and Collective Bargaining Agreements The legislative items requiring your approval are as follows: (A) the attached two (2) emergency ordinances by a four- ; fifths vote concerning Article IV. Pension and Retirement Plans of the Miami Code, j (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 FY'92 and FY'93 for the Fraternal Order of 'i Police and the Sanitation Employees' Association, and ( D ) the attached one (1) resolution declaring a one-time election by the City which is required prior to September 30, 1991 under Section 415(b10c) of the 1986 Tax Reform Act to protect the method of accrual of benefits of employees covered by the City's pension plans. 91- 599 ♦ Y/ 0 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 Sanitati Emplovees' 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 for employees hired after May 16, 1984 wi l l 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 earnable 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 Livinq Increases in Exchange for the Propose eneritis 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 91 599 t r tk F i 1 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. As of this date, the AFSCME and the FOP bargaining units have ratified the provisions of the permanent pension ordinance modifications and the Retirement Incentive Program. First Year's Savings from Permanent Pension Benefit Modifications and the Retirement Incentive Program will Aggregate to 5 million The estimated combined first year's savings from these permanent benefit modifications and the Retirement Incentive Program for both pension trusts will be approximately $5 million; assuming a 35% election rate. Salary avoidances, the 4% across- the-board salary increase deferral, and a "downsizing" of City government will substantially offset increased pension -related and program costs. Update on The Retirement Incentive Program Insofar as the Retirement Incentive Program is concerned, the administration has identified 532 employees that may be eligible to retire on or before October 3, 1991. These employees are members of their respective retirement trusts, i.e., GESE, FIPO, or ICMA, and are members of the City's four bargaining units and the unclassified, managerial/confidential, and executive employment groups. According to the City's actuarial consultant, A. Foster Higgins & Co., Inc., the national average for participation in retirement incentive programs is approximately thirty (30) percent. For budget projection purposes, the administration has assumed a thirty-five (35) percent participation level as a result of the currently large number of eligible employees and the positive combination of the City's retirement incentive program and the proposed permanent modifications to the pension ordinance. Resolutions Attendant to Pension Ordinance Modifications The attached resolutions principally relate to the memoranda of understanding modifying specific provisions of collective bargaining agreements with the City's unions. These provisions are as follows: ( 1 ) Deferral of the 4% October 1991 across-the-board increase to October 1992 for the AFSCME membership, 91-- 599 1% 4 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 91- 599 0 w CITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM Members of the City Commission DATE : August 23,.,1991. r FILE: SUBJECT : Special Commission , Meeting September.F, 1991 M Xavier L. Suarez / REFERENCES: Mayor Z. 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 FY'92 budget. A package of proposed legislation will be forwarded to you shortly. cc: Cesar H. Odio, City Manager 91 - 599 1