The URL can be used to link to this page

Home My WebLink AboutR-91-06011 't J-91-739 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 SANITATION EMPLOYEES ASSOCIATION, 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 YEARS 1991-1992 AND A FOUR PERCENT (4%) ACROSS-THE-BOARD INCREASE FOR FISCAL YEAR 1992-1993 AND TO PROVIDE THAT IN ADDITION TO WAGE INCREASES, SANITATION EMPLOYEES SHALL BE ENTITLED TO A BONUS BASED ON SAVINGS EXPECTED TO BE REALIZED ON TIPPING FEES GENERATED FROM DIVERTING YARD WASTE TO COMPOSTING AND MIXED TRASH TO RESOURCE RECOVERY FACILITY. WHEREAS, the City of Miami and the Sanitation Employees Association, the collective bargaining agent for sanitation employees have entered in negotiation concerning across-the-board increases on wages; and WHEREAS, the Sanitation Employees Association, 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, in addition to said wage increase, sanitation employees shall be entitled to a bonus increase based on savings expected to be realized on tipping fees when yard waste is diverted to composting and when mixed trash is delivered to resource recovery facility; and WHEREAS, it is advantageous for the City of Miami to authorize the City Manager to enter into a Memorandum of Understanding with the Sanitation Employees Association concerning wages, and to provide its members a bonus based upon savings expected to be realized; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION 0 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 Sanitation Employees Association for Fiscal Years 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. The City Manager shall develop a formula that shall allocate the savings expected to be realized on tipping fees and from delivery of mixed trash to resource recovery facility, between the City and the Sanitation Employees Association. City employees represented by the Sanitation Employees Association shall be entitled to a bonus from said savings. Section 3. This Resolution shall become effective immediately upon its adoption. PASSED AND ADOPTED this 5th day of September , 1991. ATTE MATn HIRAI CITY CLERK PREPARED AND APPROVED BY: RAMON IRIZARR ASSISTANT CI Y AT RNEY T XAVIER L. S APPROVED AS TO FORM AND CORRECTNESS AS OF AUGUST 30, 1991: -2 Z, MAYOR 91- 601 i s 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, 1,991 SUBJECT Pension Ordinance Amendments and Associated Reso- REFERENCES l u t i o n s ENCLOSURES S e v e n (7) FILE 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 City's budgetary and financial position. The Administration Recommends Approval of the Attached Seven (7) Legislative Items Relating to Pension Benefits and Collective Barqaininq Agreements The legislative items follows: 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 Internationdl 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(bl0c) of the 1986 Tax Reform Act to protect the method of accrual of benefits of employees covered by the City's pension plans. 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' Reti rement 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 Living Increases in 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 I, 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. the AFSCME and the FOP bargaining units As of this date, ermanent pension ordinance have ratified the provisions of the P modifications and the Retirement Incentive Program. Modifications First Year Savin s frntiverProent ramPwilloA Benefit eate to 5 million and the Retirement Ince The estimated combined first year's savings from these permanent benefit modifications and betapproximatelyRetirement $5 million-, Program for both pension trustsSalary avoidances, the 4�% across - assuming a 35% election rate. "downsizing of City the -board salary increase deflly offsetand ncreased pension -related government will substantially and program costs. date on The Retirement Incentive Pro ram Insofar as the Retirement Incentive ePrloyees 1 that nogra e may be the administration has identified 532 P to ees o retire on or before October 3, eligible ttrusts,1991. ThesemP•eGESE, are members of their respective retirement sfour bargaining FIPO, or ICMA, and are member eds omanageri 1f the %confidential, and units and the u executive employment groups. A. Foster According to the City's actuarial consultarticipation in Higgins & Co., Inc., the national average for participation (30) retirement incentive programs is approximately percent. For budget projection purposes, the administration has P percent participation level as a assumed a thirty-five ( urge number of eligible employees and result of the currently 's retirement incentive the positive combination of the City to the pension program and the proposed permanent modifications ordinance. Resolutions Attendant to Pension Ordinance Modifications memoranda The attached resolutions specific rif l y r ils i e o f e collective of understanding modifying�s unions. These provisions bargaining agreements with the City are as follows: (1) Deferral of the 4% October 199shiPcross-the-board increase to October 1992 for the AFSCME 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 CITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM Members of the City Commission vntE : August 23,;: ;199 ],. FILE SUBJECT : Special Commission Meeting September 1991 Xavier L. Suarez S Mayor / REFERENCES : ENCLOSURES: he As a result of considerable inistrationns certain tretirement bargaining units and the proposed which will require benefit enhancements have been pro p the passage of several legislative items: Two plans emergency f th ordinances amending the pension retirement p Miami code, two resolutions modifying the current collective bar gaining agreements with the Internationalo at on two g of and the Miami General Employees Firefighters, the - board specifying across-thea the i Fraternal Orderfiscal year 1992 and fiscal year 1993 for 4-4n P.M loyees Association,. and one police, and the Sanita o p electio theCity resolution declaring a one-time Section to September 30, 1991 is required prior Act in order to protect the. 415(b10c) of the 1988 Tax Reform employees covered by our method of accrual of benefits of pension plan. intention to bring this emergency legislation 991 It is my the City Commission at ether impending before Commission meeting impact on due to it p A of proposed commencement of the FY'92 budget. package shortly. legislation will be forwarded to you y cca Cesar H. Odio, City Manager J ,7c";�°y1izx f a =Y k 1 ./u 1 -