Revised Memooti sovey South Miami
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CITY OF SOUTH MIAMI 11111'r .
FtOR`o" OFFICE OF THE CITY MANAGER
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INTER - OFFICE MEMORANDUM
To: The Honorable Mayor & Members of the City Commission
Via: Hector Mirabile, Ph.D., City Manager / -
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From: LaTasha Nickle, Human Resources Director/
Date: September 21, 2011 Agenda Item No.:
Subject: Contract between the City of South Miami and the American Federation of State, County and
Municipal Employees ( "AFSCME "), Local 3294
A Resolution Approving and Authorizing The City Manager To Execute the October 1, 2011 -
September 30, 2013 Agreement Between the American Federation of State, County and Municipal
Employees ( "AFSCME "), Local 3294 and The City Of South Miami.
REQUEST: To approve a three year agreement between the City of South Miami and AFSCME.
BACKGROUND: This agreement covers all regular, full time employees employed as equipment operators,
laborers, sanitation engineers and supervisors, custodial workers, parks and grounds
workers and supervisors, maintenance workers and supervisors, paint and body workers,
building maintenance workers and supervisors, maintenance mechanics and supervisors,
carpenters, and motor equipment operators, and code enforcement officers employed by
the City of South Miami, but excluding all secretarial employees, professional employees,
managerial employees, and confidential employees. The negotiation sessions were very
productive and the parties were able to reach an Agreement on the terms and conditions
of a new Collective Bargaining Agreement; effective October I, 2011 through September
30, 2013. The major highlights of the CBA are set forth below:
Article 13 HOLIDAYS Indirect Cost - $16,815
Employees covered by the Agreement will earn an additional Floating Holiday (total of 2)
after the first full year of service.
Article 19 PERFORMANCE EVALUATIONS
Under the terms of the Agreement, employees receiving an unsatisfactory performance
evaluation shall be placed on a Performance Improvement Plan and be re- evaluated at
prescribed intervals to provide an opportunity for the employee to succeed in the City
service.
Article 22 CALL -BACKS
The parties agree that employees will be credited with three hours of actual work for call-
backs that occur more than one hour before or after the employees' regular shift.
SUPPORT:
Article 17 WAGES Direct Cost - $3,500
Employees covered by this Agreement shall receive a one (1) time bonus of $100 upon
final ratification and execution of the Agreement.
Article 33 RETIREMENT BENEFITS 30 -yr Estimated Savings — $15,160,447
All new employees hired by the City of South Miami on or after October 1, 2011,
will not be eligible to participate in the City's General Employees Pension Plan. All
new employees hired on or after October I, 2011 will join the ICMA -RC defined
contribution (DC) 457 plan.
The definition of Final Monthly Compensation (FMC) is revised for future benefit
accruals to the average of the final sixty (60) months of basic compensation but
not less than current Final Monthly Compensation as of October 1, 2010. Basic
compensation excludes commissions, overtime pay, bonuses and any other forms
of additional compensation outside of base wages.
The benefit accrual rate is reduced to two and a quarter percent (2.25 %) per year
for future credited service.
The current accrued benefits of General Employees are frozen and payable under
the current terms of the Plan at the currently defined normal retirement date —
the later of attainment of age fifty -five (55) and completion of ten (10) years of
credited service. Future benefit accruals, including increases due to increases in
FMC, will be payable at the proposed new normal retirement date — the later of
attainment of age sixty (60) and completion of ten (10) years of credited service.
The supplemental benefit Cost of Living Adjustment (COLA) for General
Employees is eliminated for future benefit accruals, including increases in the
current accrued benefit due to increases in FMC. General employees will receive
the supplemental benefit on their current accrued benefit.
All new employees hired on or after October 1, 2011 will join the ICMA -RC
defined contribution (DC) 457plan. City employees are NOT required to
contribute to the DC 457, however the City will match the employee's percentage
of contribution up -to a maximum of seven percent of base salary.
All employees hired on or before September 30, 2011 will have a one -time option
to either remain in the City's General Employees Pension Plan or elect to
discontinue membership.
Q Proposed resolution.
Q Letter from AFSCME confirming ratification.
Q Proposed Collective Bargaining Agreement
❑ GRS Pension Benefit Study & 30 -Year Projections