The URL can be used to link to this page

Home My WebLink AboutR-91-060040\ J-91-738 8/27/91 RESOLUTION NO. 9-1 _ 60() 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 MIAMI GENERAL EMPLOYEES/AFSCME, LOCAL 1907, AFL-CIO, IN EFFECT FOR THE PERIOD OF OCTOBER 1, 1990 THROUGH SEPTEMBER 30, 1993, ADOPTED PURSUANT TO RESOLUTION NO. 91-40, ON JANUARY 10, 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 TO PROVIDE FOR NEGOTIATION ON ONE ARTICLE AS SELECTED BY THE CITY, EXCLUDING LAYOFFS, AND ONE ARTICLE TO BE SELECTED BY THE UNION, EXCLUDING ARTICLE 24 - WAGES. WHEREAS, the City of Miami and the Miami General Employees/AFSCME, Local 1907, AFL-CIO, the collective bargaining agent for general employees, have entered in negotiation modifying across-the-board increases on wages; and WHEREAS, the Miami General Employees/AFSCME, Local 1907, AFL-CIO, 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 Miami General Employees/AFSCME, Local 1907, AFL-CIO, has further agreed to modify the reopener clause in the 1990-1993 collective bargaining agreement to reopen negotiation of one article as selected by the City, excluding layoffs, and one article to be selected by the Union, excluding Article 24 - Wages; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: crry COMUSSION MEEmG OF it 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 Miami General Employees/AFSCME, Local 1907, AFL-CIO, 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 and to open negotiations on one article as selected by the City, excluding layoffs, and one article to be selected by the Union, excluding Article 24 - Wages. Section 3. This Resolution shall become effective immediately upon its adoption. PASSED AND ADOPTED this 5th CITY CLERK PREPARED AND APPROVED BY: ASSISTANT CI Y 11 APPROVED AS TO FORM AND CORRECTNESS RI :loss : M2451 _2W day of September , 1991. 91-- 600 CITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM To . Honorable Mayor and Members DATE August 28, 1991 FILE of th City Commission SUBJECT Pension Ordinance Amendments and Associated Reso- FROM REFERENCES 1 u t i o n s Cesar H. Odio City Manager 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. The reason for the emergency legislation is the impending commencement of the F Y ' 9 2 budget on October 1, 1991 and the favorable impact that the proposed ordinances and Retirement Incentive Program will produce upon the City's budgetary and financial position, The Administration Re 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, (8) 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 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.-- 600 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 Sanitation 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 for 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' rement Tru (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 living Increases to Exchange for the Propose Benefits 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- 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, FIFO, 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-- 600 Mayor and Members of the City Commission Page 4 (2) Deferral the for the AFF membership across-the-board increase to October 1992 (3) Establishing a 0% across-the-board increase effective October 1991 and LheaFOP membershipthandoard increase effective October 1992 for (4) Establishing a 0% across-the-board increase effective October 19a1arsavings - board bonus for rthe easeSEAffectimembershipve tober 1992, and tipping feewhich Finally, a resolution is recommended for your approval for the "grandfathers" protection and accrual of a approved benefits eptember City's employees. The resolution must be app City' 1991 to comply with the provisions of the 19$b Tax Reform Act. Ifyou e require at additionalnformation clarification, please contact m cc: Executive staff 91- 600 rW IM CITY OF MIAMI, FLORIDA m-tEn-OFFICE MEMORANDUM Commission ur+rE : August 23, _41991. Members of the City Special Commission sururcr : Meeting September.5, 1991 REFERENCES Xavier L. Suarez r l: ENCLOSURES : Mayor ME: the City's certain retirement As a result units and t e aadministration,s among bargaining ro osed which will regency re Two emergency benefit enhancements have been legislative lens of the the passage of sever; al pensionretirement p ordinances amending in the current collective Miami code, two resolutions modify 9 two bargaining agreements with the internationalees AFSCME°n o Firefighters, and the Miami General Employ / resolutions specifying across -the board increases for fiscof al year 1992 and fiscal year 19931oaees the Association,.Oandr one y and the Sanitation Emp Y the City which police, a one-time election by resolution declaring September 30, 1991 under Section is required prior to, Sep protect the A15(bl0c) Of the 1988 ax Reform Act ilo rder covered by our method of accrual of benefits of emp pension plan. legislation this emergency leg 1991 it is my intention to bring the September 5`en1991 ding before the City Commission at act on the imp Commission meeting due to its imp A package of proposed legislationof the FY twill be forwarded to YOU shortly. cc: Cesar H. Odio, City Manager 0