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Ord No 22-16-2255ORDINANCE NO.22-16-2255 An Ordinance amending the South Miami Pension Planto implement the Collective Bargaining Agreement between the City of South Miami and AFSCME Local 3294 and creating a new Administration Management Service Class (AMSC)of employees in the South Miami Pension Plan for the City of South Miami and setting forth the terms of the Plan as related to the AMSC ;by Amending Chapter 16,Article II, Section 16-12,"Definitions"by Adding Definitions for Second Tier Member and AMSC and amending the definition of final average compensation,asit applies to the AMSC ;by amending Section 16-13,"Eligibility"to reopen the Plan for certain General Employees and for the AMSC ;by amending Section 16-14,"Pension benefits and retirement date"toset out the benefits for those persons who will join the Second Tier and for those persons in the AMSC ;by amending Section 16-17 "Termination Benefits"to provide a vesting schedule for the AMSC ;by amending Sec.16-19,"Contributions"to place a limit on the total contributions made in any fiscal year by General Employees and toset the contribution rate for the AMSC ;by amending Section 16-21,"Purchase of Credited Service"by allowing certain employees to buy credited service. WHEREAS,the Cityof South Miami and the American Federation of State,County and Municipal Employees,AFL-CIO,City Employees Local 3294 (hereinafter "Union"),have entered intoa new Collective Bargaining Agreement ("Agreement"),effective June 22,2016 to June 21,2019;and WHEREAS,itis the purpose and intention of the Agreement to provide for salaries, fringe benefits and other terms and conditions of employment except as otherwise provided by Constitution,Statute,Charter,Ordinance,Administrative Order or Personnel Rules and Regulations;and WHEREAS,Florida law requires that if any provision ofa collective bargaining agreement isin conflict with any ordinance over which the chief executive officer has no amendatory power,the chief executive officer shall submit to the appropriate governmental body having amendatory power a proposed amendment to such ordinance;and WHEREAS,the City Commission has decided to create a new class of employees, comprised of the Administration Management Service Class ("AMSC")and topermit members of the AMSCtojoin the South Miami Pension Plan and to provide for the terms of membership; WHEREAS,the City Commission has received and reviewed an actuarial impact statement related to such amendments;and WHEREAS,the City Commission wishes to change the terms of the South Miami Pension Plan to effectuate the changes called forin the Agreement;and 1 Ord.No.22-16-2255 WHEREAS,the City Commission deems itto be in the public interest to provide these changes to the pension plan; NOW,THEREFORE,BEIT HEREBY ORDAINED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAMI,FLORIDA,THAT: Section 1:That Chapter 16 Article II,Section 16-12,"Definitions"of the Cityof South Miami Code of Ordinances is hereby amended by adding toit the following definitions: Definitions. *** AMSC Member shall mean the Administration Management Service Class.Itwill be composed of employees who hold only the following positions: City Manager City Attorney City Clerk Assistant /Deputy City Manager Finance Director/Chief Financial Officer Chief of Police Planning and Zoning Director Building Director Director of Public Works Chief Administrative Officer (currently Finance Office Manager) Chief Procurement Officer (currently Purchasing Manager) Parks and Recreation Director Employee shall mean any person employed full-timeby the employer ona regular, permanent basis.Elected officials shall be excluded.The city manager,city clerk,and any employees persons defined as department heads within this section,shall be included within the definition of employee,however such positions shall be allowed a one-time opportunity to opt out,prior toeligibility date as defined in section 16-13 of this Code,(inwriting)of this pension plan. *** Second Tier Member shall mean general employees who are hired on or after October 1, 2016 who elect to join the South Miami Pension Plan,and general employees who were hired prior to October 1,2016 and not participating in the South Miami Pension Plan as of October 1,2016 who elect to join the South Miami Pension Plan. Ord.No.22-16-2255 Section 2:That Chapter 16 Article II,Section 16-12,"Definitions"of the Cityof South Miami Code of Ordinances is hereby amended by amending the definitionof average final compensation as follows: Final average compensation shall mean the participant's annual compensation,as determined by the employer,acting inauniformand nondiscriminatory manner.For general employees,except for Second Tier Members andAMSC Members effective October 1, 2011,final average compensation shall be averaged over the last five-year period,provided however final average compensation over the last five-year period shall not be less than the final average compensation as of September 30,2011,under the definitionoffinal average compensation which existed as of September 30,2011.For Second Tier Members,final average compensation will be the average of the highest eight (8)years of credited service. For AMSC Members,final average compensation will be the average of the highest eight (8) years of credited service.In the event an AMSC Member has less than eight (8)years of credited service,final average compensation will be the average of all the participant's annual compensation over the period for which the Member received credited service.For members covered under the police officers and sergeants collective bargaining agreement,final average compensation shall be the best five-year period of the police officer or sergeant's career with the Cityof South Miami,provided however final average compensation over the best five-year period shall not be less than the final average compensation as of September 30,2011,under the definition offinal average compensation which existed as of September 30,2011.The best five(5)years is defined as the highest five(5),twenty-six (26) consecutive pay periods within a police officer or sergeant's career and such consecutive year periods shall not overlap one another.For all other members,final average compensation shall be averaged over the last three-year period -but not less than the average of the participant's five(5)best years of annual compensation during the last ten (10) years of service.For all members final average compensation will end on the participant's retirement date,date of disability,date of termination of employment or the date of termination of the plan,whichever is applicable. Section 3:That Chapter 16Article II,Section 16-12,"Definitions"of the Cityof South Miami Code of Ordinances is hereby amended by amending the definition of credited service as follows: Credited service shall mean participant's continuous employment with the employer computed in completed calendar months while a member of the South Miami Pension Plan. For Second Tier Members and AMSC Members who elect to join the South Miami Pension Plan as a result of this Ordinance,credited service shall include continuous employment prior to becoming a member of the South Miami Pension Plan for all purposes except for purposes of benefit accrual.Leaves of absence authorized by the employer with periods of absence in connection withmilitary service during which the participant's employment rights were protected bylaw shall not be considered to have broken the continuity ofhis employment; provided,that the employee has become re-employed by the employer within time period provided in The Uniform Service Employment and Reemployment Rights Act (USERRA)and 3 Ord.No.22-16-2255 for police officers Chapter185ofthe Florida Statutes afterhonorabledischarge from the military service.Further,thattheemployeehaspaidanamountequaltothecontributionsthat would have been made during such leave of absence based on the participant's salary immediately priortoentryinto military service,provided thatpolice officer participantsshall notberequiredtomake such payment ofcontributionsper Chapter 185,F.S.Noemployee shallbeeligibleto become a participant during such absence. Section 4:That Chapter 16 Article II,Section 16-13,""Eligibility"of the CityofSouth Miami Code of Ordinances is hereby amended as follows: Eligibility. (a)Each employee employedbytheemployeron October 1,1965,shallbea participantonthefirstparticipation date onwhichhe has completed two(2)years ofcredited service and has attained his twenty-fifth birthday. (b)Each employee who becomes an employee subsequent to October 1,1973, shallbea participant onthefirstparticipation date onwhich he/she has completed six(6) months of credited service and has obtained his/her twentieth birthday.For all current employees as of October 1,1995,each fiscal year there will be awindowforjoining the retirement system;i.e.October 1 through October 31. (c)It shall become mandatory forall employees hiredonor after October 1,1995, tojoin the pension plan after completion ofsix(6)months of employment by the city. (d)All general employees who are hiredby the Cityof South Miamionor after October 1,2011,will not be eligible to participate in the South Miami Pension Plan.All general employees hiredonor after October 1,2011,shall join the ICMA RC a_defined contribution plan of the City of South Miami(DC)457 Plan. (e)Employees who are hiredonor after October 1,2011,and are classified as police officer or sergeant,shall enter the pension plan immediately upon being hired as a sworn law enforcement officer. (f)All general employees hired onor before September 30,2011,will have a one time option to either remain in the South Miami Pension Plan or elect to discontinue membership. (1)For general employees who choose to discontinue membership in the South Miami Pension Plan,employees shall provide in writing no later than December 31,2011,to the City's Human Resources Department,a letter stating their choice to discontinue membership in the South Miami Pension Plan.The letter shall state the percentage the employee will contribute towards the defined contribution plan ICMA RC 457 which contribution rate shall be effective until September 30,2012.The effective date of the change is on the first pay period in January 2012. Ord.No.22-16-2255 (2)Shoulda general employee choose to discontinue membership intheSouth Miami Pension Plan,the general employee will be refunded the contribution which they contributed during their participation in the South Miami Pension Plan and may rollover such amount into the defined contribution plannewly established ICMA RC 457 Plan. (g)Notwithstanding sections (a)through (f)above,general employees who are not participating in the South Miami Pension Plan as of October 1.2016,and general employees hired on or after October 1,2016 shall be given a one-time irrevocable election to either become a Second Tier Member of the South Miami Pension Plan or ioin a defined contribution plan of the City of South Miami.The irrevocable election must be made within ninety (90)days from the later of the effective date of this Ordinance or date of hire.If no election is made,the general employee will be placed in the South Miami Pension Plan. (h)All persons who hold positions listed in the AMSC in the definition section above and who are not participating in the South Miami Pension Plan as of October 1,2016, shall be given a one-time irrevocable election to either ioin the South Miami Pension Plan or ioin a defined contribution plan of the City of South Miami.The irrevocable election must be made within ninety (90)days from effective date of this Ordinance.All AMSC Members who are,on the effective date of this Ordinance,participating in the South Miami Pension Plan will have their accrued benefits as of the date of the adoption of this Ordinance reflect their compensation through date of termination for purposes of final average compensation as defined immediately prior to the effective date of this ordinance. All persons who are not AMSC Members and are not participating in the South Miami Pension Plan as of October 1,2016,but thereafter become a member of the AMSC in the definition section above,upon becoming a member of the AMSC shall be given a one-time irrevocable election to ioin the South Miami Pension Plan or join a defined contribution plan of the City of South Miami.The irrevocable election must be made upon becoming a member of the AMSC.All those general employees,who,after the effective date of the Ordinance, become AMSC Members will have their accrued benefits as of the date they become AMSC Members reflect their compensation through date of termination for purposes of final average compensation as defined immediately prior to the effective date they become AMSC Members. (i)Notwithstanding Sections (a)through (h)above,all persons who ioin the South Miami Pension Plan on or after the effective date of this Ordinance will not be reguired to have completed six (6)months of service prior to joining and are reguired to participate immediately upon hire or upon election to join for members who were hired prior to the effective date of this Ordinance. Section 5.That Chapter 16 Article II,Section 16-14,"Pension benefits and retirement date"of the Cityof South Miami Code of Ordinances is hereby amended as follows: Ord.No.22-16-2255 (a)Retirement date.Thenormalretirement date with full unreduced pension benefitsfora participant,shall be as follows: (1)General employees.Shallbe the first day of the calendar month coincident with or,otherwise,next following the later of the participant's sixtieth birthday and the date onwhich the participant has completed ten (10)years of credited service.General employees participating in the plan as of September 30,2011,will remain eligibleto retire at the age of fifty-five (55)and the completion of ten (10)years of credited service and obtain their accrued benefits earned through September 30,2011,at such time.Benefit accruals earned on or after October 1,2011,including increases due to increases infinal average compensation,may be paid at the new normal retirement date of attainment of age sixty(60)and completion of ten (10)years of credited service.General employees who were participating in the plan on September 30, 2011,may receive their benefits accrued after September 30,2011 upon retirement on the first day of any month following retirement upon attaining age fifty-five(55)and ten (10)years of credited service reduced one-fifteenth (1/15th)for each year benefit commencement precedes the later of age sixty(60)and ten (10)years of credited service.Or,in the alternative,those general employees who were participating in the plan as of September 30,2011,may defer commencement of their benefit accrued after September 30,2011,until attainment of age sixty (60)and ten (10)years of credited service.Under no circumstance willa general employee member who was participating in the plan on September 30,2011,be allowed to receive their fifty-five (55)and ten (10)distribution and then keep working. (2)Second Tier Members.The earlier of (a)age 65 and completion of ten (10) years of credited service;or (b)completion of thirty-three (33)years of credited service. (3)AMSC Members.The earlier of (a)age 65 and completion of three (3)years of credited service;or (b)completion of thirty-three (33)years of credited service. (A)Early retirement (1)A general employee participant as of September 30,2011,and AMSC Participants may elect an early retirement date which may be the first day of any calendar month coincident with,or subsequent to the participant's fifty-fifth (55th) birthday and completion of ten (10)years of credited service.The pension benefits payable to any such participant on early retirement date shall be equal to an actuarial equivalent,determined in accordance with the table below,to the amount of pension to whichis entitled upto early retirement date in accordance with subsection (b). Table—General Employee participant as of September 30,2011,AMSC Participants Participant—Percentages for early retirement date Years prior to normal retirement date Percentage Ord.No.22-16-2255 Years prior to normal retirement date Percentage 1 93.33 2 86.67 3 80.00 4 73.33 5 66.67 6 63.33 7 60.00 8 56.67 9 53.33 10 50.00 (2)Police officers.Shall be the completion of twenty-five (25)years of credited police service,regardless of age,or attainment of age sixty (60)and completion often (10)years of credited police service. (3)Vesting of benefits upon normal retirement date.Any provision of this plan to the contrary notwithstanding,a member's accrued benefit shall become one hundred (100)percent vested upon the attainment of the normal retirement date. (b)Amount of pension.The yearly amount of pension payable toa participant on the first day of the month coincident withor next following the participant's retirement date shall be an amount equal to the participant's number of completed years of credited service multiplied by a percentage offinal average compensation as stated herein. (1)Basic benefit. a.A basic benefit for participant's retiring prior to October 1,1970,shall be determined by multiplying 1.6 percent of the participant's final average compensation by the number of completed years of credited service,excluding the firsttwo(2)years of such service andany additional service completed by the participant priorto the participant's twenty-fifth birthday. Ord.No.22-16-2255 b.However,as to those participants who became an employee subsequent to October 1,1973,there shall only be excluded the firstsix(6)months of such service plusanyadditional service completed priorto the participant's twentiethbirthday and/or additional service completed priorto the participant becoming eligible tojoin this pension plan. (2)General employees. a.Effective October 1,1993,the pension benefit accrual rate (multiplier)for general employee participants,shallbe increased from1.6 percent to1.8 percent for services performed in the 1993-1994 fiscal year. b.Effective October 1,1994,the pension benefit accrual rate (multiplier)for general employee participants,shallbe increased from1.8 percent to1.9 percent for services performed in the 1994-1995 fiscal year. c.Effective October 1,1995,the pension benefit accrual rate (multiplier)for general employee participants shall be increased from 1.9 percent to 2.25 percent for services performed in the 1995-1996 fiscal year. d.Effective October 1,1996,the pension benefit accrual rate (multiplier)for general employee participants shall be increased from 2.25 percent to 2.50 percent for services performed in the 1996-1997 fiscal year.Effective October 1,2001,the pension benefit accrual rate (multiplier)for general employee participants shall be 2.25 percent for all services performed through September 30,1998. e.Effective October 1,1997,the pension benefit accrual rate (multiplier)for general employee participants shall be increased from 2.50 percent to 2.75 percent for services performed in the 1997-1998 fiscal year and thereafter.Effective October 1, 2001,the pension benefit accrual rate (multiplier)for general employee participants shall be 2.50 percent for services performed in the 1998-1999 fiscal year and 2.75 percent for services performed thereafter. f.Effective October 1,2002,the pension benefit accrual rate (multiplier)for general employee participants shall be 2.50 percent forall services performed through September 30,1999,and 2.75 percent for services performed thereafter. g.For all service earned onor after October 1,2011,the pension benefit accrual rate (multiplier)for general employee participants shall be reduced from 2.75 percent to 2.25 percent. tL For all service earned on or after October 1,2016,by Second Tier Members the pension benefit accrual rate (multiplier)shall be 1.60 percent. L For all service earned on or after October 1,2016 by AMSC Members of the South Miami Pension Plan,the pension benefit accrual rate (multiplier)will be 3.00 percent. 8 Ord.No.22-16-2255 (4)Supplemental benefit.A supplemental benefit,if any is payable,determined on each valuation date which occurs after the participant's normal retirement date.The supplemental benefit shallbe equal to(1)an amount determined at the first applicable valuation date by multiplying the yearly amount of basic benefit by the percentage,ifany,bywhich the current index exceeds the base index and (2)an amount determined at each subsequent valuation date,where the current index exceeds the prior index,or where the prior index exceeds the current index,by reducing such sum by the product of such sum and the percentage by which the prior index exceeds the current index;provided,however,that inno event shall the supplemental benefit payable at any timebe greater than the excess of(1)the basic benefit increased at three (3)percent compounded annually from the initial valuation date applicable to the participant over (2)the basic benefit.Inno event shall the supplemental benefit be reduced below zero so as to affect the amount of basic benefit.Supplemental benefits shall commence or be adjusted as of each October 1 and shall continue thereafter for the following eleven (11)months.Effective October 1,2011,the supplemental benefit Cost of Living Adjustment (COLA)for general employees (eligible retirees and/or beneficiaries)is eliminated for future benefit accruals,including increases in the current accrued benefit due to increases infinal average compensation.General employees will receive the supplemental benefit on their accrued benefit as of September 30,2011.Second Tier Members shall not be eligible for the supplemental benefit cost of living adjustment.AMSC Members shall not be eligible for the supplemental benefit cost of living adjustment for benefit accruals on or after October 1,2011. Section 6.That Chapter 16,Article II,Section 16-17(b),"Termination of Employment",shall be amended to provide as follows: (b)Any such participant shall be entitled to elect Option 1 or Option 2,as described below,except that Option 2 shall be automatically considered as having been elected by the Participant unless Option 1is elected before the participant's normal retirement date. Option 1:A cash payment of an amount equal to the aggregate of the contributions made by the participant prior to termination of employment.Provided that police officer participants eligible to withdraw their contributions from this pension plan may only withdraw their contributions without interest. Option 2:Pension benefits commencing on what otherwise would have been the normal retirement date of the participant in an amount equal to the greater of that which can be provided by the aggregate of the contributions made by the participant priorto the termination of employment,with credited interest compounded annually at the rate of three (3)percent per annum from the end of the year of payment to the date onwhich Ord.No.22-16-2255 pensionbenefitscommence;oranamountdeterminedby multiplying theamountof pensiontowhichtheparticipantisentitled in accordance with section subsection 16- 14(a)or 16-14(b),whichever is applicable bya percentage determined in accordance with the following schedule on the basis of the lengthof credited service. Number of years of credited service Percentage Less than 10 0 11 10 12 20 13 30 14 40 15 50 16 60 17 70 18 80 19 90 20 or more 100 Police officer participants,including bargaining unit employees,shall be one hundred (100) percent vested in the retirement plan upon completion often (10)years continuous full-time sworn police service.Accordingly,effective October 1,1993,all police officer participants, including members of the bargaining unit,who are in this plan effective October 1,1993 and have between ten (10)years and twenty (20)years of continuous sworn police service will be one hundred (100)percent vested. All general employees shall be one hundred (100)percent vested in the pension plan upon completion often (10)years of continuous credited service.All Second Tier Members shall be one hundred (100)percent vested in the pension plan upon completion often (10)years of continuous service.AMSC Members shall be one hundred (100)percent vested in the 10 Ord.No.22-16-2255 pension plan upon completion of three (3)years of continuous service.General employees and AMSC Members who opt toioin the defined contribution plan of the Cityof South Miami shall vest after one (1)year of service.Accordingly,effective October 1,1995, all general employees whoare in thisplan as of October 1,1995,andhaveten (10)years or more of continuous service will be one hundred (100)percent vested. Section 7.That Chapter 16,Article II,Section 16-19 "Contributions"is amended as follows: (a)Each participant,except as otherwise provided herein,shall contribute in each calendar year towards the cost of the participant's pension an amount equal to three (3)percent of the participant's earnings.With the exception of police officer participants,Except as otherwise provided herein,no participant shall make any contributions toward the cost of any past service pension towhich the participant is entitled under this plan.The employer shall contribute the balance of the cost,actuarially determined,of providing the benefits of the plan.The employer's contributions shall be deposited into the pension plan on at least a quarterly basis.Effective October 1,1995,the pension contribution forall general employee participants,including those general employees that are now members of the retirement system,shall be increased from three (3)percent tofive(5)percent of earnings.Effective October 1,2001,the pension contribution forall general employee participants,including those general employees that are now members of the plan,shall be increased fromfive(5) percent to seven (7)percent of earnings.Police officer participant including bargaining unit employees,that are now members of the plan and any police officers who join the plan in the future shall,effective October 1,1993,have their contribution increased from three (3) percent tofive(5)percent of earnings.Effective October 1,2001,police officer participants shall contribute 7.5 percent of earnings. (1)General employee participants.Should the employer's annual contribution be actuarially determined to exceed twelve (12)percent,both the employer and the participants shall share equally the amount in excess of twelve (12)percent for that fiscal year Effective October 1,2005,should the total participant and employer's annual contribution be actuarially determined to exceed fourteen (14)percent,both the employer and the general employee participants shall share equally the amount in excess of fourteen (14)percent for that fiscal year.Notwithstanding the above,the maximum general employee contribution rate will be 10%of earnings for fiscal years beginning on or after October 1,2016. (2)Police officerparticipants.Effective October 1,2004,if the total police officer participants'contributions and employees contribution exceeds fifteen(15)percent of covered police payrollfor any fiscal year,the excess over fifteen (15)percent shall be shared equally by the employer and police officer participants.Police officer participant contributions shall be deposited in the plan immediately after each pay period.Effective October 1,2001, an amount actuarially determined,to provide for certain minimum benefits required by Chapter 185,F.S.shall be paid from the South Miami Police Officers Retirement Trust Fund to the plan each year,regardless of the growthor diminution in future Chapter 185,F.S. funds. 11 Ord.No.22-16-2255 (3)Second Tier Member participants.Second TierMembersshallcontribute three (3) percent of earnings. (4)AMSC Member participants intheSouth Miami PensionPlan.AMSC Members shall contribute seven (7)percent of earnings. (5)General employees and AMSC Member participants in the defined contribution plan of the City of South Miami referenced in Section 16-13 above.General employees and AMSC Member participants in the defined contribution plan of the City of South Miami referenced in Section 16-13 above shall contribute a minimum of three (3) percent of earnings.The City of South Miami shall contribute seven (7)percent of earnings. (6)[Otherparticipants.]Effective October 1,2009,and for one (1)fiscal year thereafter participant contributions for the following employee designations shall be reduced from the above calculated percentages bytwo(2)percentage points: (a)Nonbargaining unit employees. (b)Members of the AFSME bargaining unit. (c)Members of the police lieutenants and captains bargaining unit. (7)415(c)Limitations.To the extent applicable,all employee contributions shall be in accordance with Subsection 415(c)of the Internal Revenue Code and all regulations thereunder,which subsections and regulations are incorporated herein by reference. (b)All amounts paid by the employer to the insurance company in accordance with this plan shall represent irrecoverable contributions,except as may be otherwise provided in subsection 16-22(b). (c)The employer shall pay the reasonable expenses of the pension board,including any expenses for legal and actuarial services. Section 8.That Chapter 16 Article II,Section 16-21,"Purchase of Credited Service" of the Cityof South Miami Code of Ordinances is hereby amended as follows: Purchase of credited service. (a)Policeofficer participants,including bargaining unit employees shallbeallowed to purchase creditfor active dutyintheU.S.military service,priorto employment as apolice officerwith the cityin accordance withUSERRAand applicable state law.Thisprovisionshall not cover reserve active duty or weekend drill.Police officers electing to purchase prior military time will do so attotal cost tothe participant withno cost assumed by the city. (b)All participants in the city pension plan shall be allowed to purchase credit for immediate past city service uptoamaximumoffive(5)years in the city pension plan pursuant to procedures promulgated at the timeof such purchase.All costs for approved 12 Ord.No.22-16-2255 purchase of past city services shallbe one hundred (100)per cent borne by the participant withno cost assumed by the city.Should the participant be permitted to purchase past city service over a period oftime,the effective date of credited service shall be on the date such purchase is paid infull. (c)Any participant classified as apoliceofficer who retires between November 1, 2011,and before November 15,2011,shall be eligiblefora retirement incentive,which shall be equal to normal retirement provided: (1)The Cityof South Miami will pay for the full actuarial cost,no later than the earlier of benefit commencement or December 1,2011,ofupto eight (8)additional months of any prior credited service earned by the electing participant police officer before he or she became a participant in the South Miami Pension Plan. (d)For all Second Tier Members hired on or after October 1,2011,the following will apply: (1)Second Tier Members will be given an option,within ninety (90)days after the effective date of this Ordinance amendment,to purchase continuous service for purposes of benefit accrual for any and all years of service,up-to the number of years they have worked at the City of South Miami at any time while employed at the City of South Miami ina position eligible for participation in the South Miami Pension Plan.Employees must pay the full actuarial cost of the service they purchase,as calculated by the South Miami Pension Plan's actuary,and such purchase will be at the member's sole expense.The cost of obtaining the actuary's calculation of the service purchase will be paid one time by the Plan. The cost of obtaining any subseguent calculation will be at the Plan member's expense.The pension benefits purchased for all persons exercising this service purchase option are the benefits for Second Tier Members including the pension benefit accrual rate (multiplier)of 1.6%. (e)For all AMSC Members hired on or after October 1,2011,the following will apply: (1)All AMSC Members who did not previously participate in the South Miami Pension Plan,will be given an option,within ninety (90)days after the effective date of this Ordinance amendment,to purchase continuous service for purposes of benefit accrual for anyand all years of service,up to the number of years they have worked at or been an elected officer for the City of South Miami at any time while employed at or serving as an elected officer for the City of South Miami ina position eligible as of October 1,2016,for participation in the South Miami Pension Plan.AMSC Members must pay the full actuarial cost of the service they purchase,as calculated by the South Miami Pension Plan's actuary,and such purchase will be at the AMSC Member's sole expense.The cost of obtaining the actuary's calculation of the service purchase will be paid one time by the Plan.The cost of obtaining any subseguent calculation will be 13 Ord.No.22-16-2255 at the Plan member's expense.The pension benefits purchased for all persons exercising this service purchase option are the benefits for all AMSC Members including the pension benefit accrual rate (multiplier)of 3.0%. Section 9.Rules of Construction.This ordinance will be construed in accordance with Florida statutory law and Florida case law. Section 10.Codification.The provisions of this ordinance shall become and be made part of the Code of Ordinances of the Cityof South Miami as amended;that the sections of this ordinance may be renumbered or re-lettered to accomplish such intention; and that the word "ordinance"may be changed to "section"or other appropriate word. Section 11.Severability.If any section,clause,sentence,or phrase ofthis ordinance isfor any reason heldinvalidor unconstitutional bya court of competent jurisdiction,this holding shall not affect the validityof the remaining portions of this ordinance. Section 12.Ordinances in Conflict.All ordinances or parts of ordinances and all section and parts of sections of ordinances in direct conflict herewith are hereby repealed. Section 13.Effective Date.This ordinance shall become effective upon enactment. PASSED AND ENACTED this 20thday of September ,2016. ATTEST: g^^V I St151 Reading _8/16/16 2nd Reading -9/20/16 READ AND APPROVED AS-^O FORM: LANG>4Q5aEGALIT/XND EXEGOTI0N THEREOF/ 14 APPROVED COMMISSION VOTE: Mayor Stoddard: Vice Mayor Welsh Commissioner Edmond: Commissioner Harris: Commissioner Liebman: 5-0 Yea Yea Yea Yea Yea CITY OF SOUTH MIAMI Qm ithVMiami 0FFICE 0FTHE CITY MANAGERJUUUI/Vlldl I II INTER-OFFICE MEMORANDUM THfl CITY OF PLEASANT LIVING To:The Honorable Mayor &Members of the City Commission From:Steven Alexander,City Manager Date:September 20,2016 Agenda Item:.a Subject:Ordinance amending the South MiamiPensionPlan Approved on First Reading, August 16,2016 -Actuarial Impact Statement SUMMARY Thesavings provided by adopting the recommended Ordinance amending the City's Pension Planisan annual estimated savings of $60,363 forGeneral Employees andan estimated annual savings of $28,141 forAMSC,foran aggregate estimated annual total savings amount of $88,505. BACKGROUND On August 16,2016,the City Commission approved,with amendments,onfirst reading,an Ordinance amending the South Miami Pension Plan.Before any amendment can be adopted,a statement of actuarial impact is required by Section 112.63(3),F.S.An Actuarial Impact Statement means a statement setting forth the actuarial liabilities and contribution requirements ofa proposed change in the provisions ofalocal retirement system certified by an enrolled actuary. On September 14,2016,GRS issued their ActuarialImpact Statement whichmaybe found attached.The Actuarial Impact Statement was prepared reflecting the impact to both classes which are tobe enabled to take advantage of the proposed new Pension Plan,the General EmployeesandAdministrative Management Service Class (AMSC). The City requested that the City'sPensionPlanActuary,GabrielRoederSmith&Company (GRS),completetherequired Actuarial ImpactStatement.GRS wasfirsthiredbythe City in 2001viaResolution 146-01-11294 toprovide the City withPensionActuarialConsulting Services,which they have been doing ever since. The Florida AdministrativeCode (60T-1.004(3)(a))states that anActuarialImpact Statement mustbecertificatedandsignedanddatedbythe Plan Administratorandcontainthe following information: a.A description ofthe proposed amendment anda statement thattheactuarywas provided the information necessary to evaluate the proposed amendment; b.An estimate ofthecostof implementing the amendment,signed anddatedbyan enrolled actuary,which discloses,ata minimum,sufficient information on both thebeforeand Page 1 of 2 after amendment basis,sothatanotheractuary,unfamiliarwiththesituation,wouldbe abletoappraisetheestimate.Ifany actuarial assumptions,techniques or methods arealso changed,additionalinformation disclosing theeffect of suchactuarialchangesmustbe provided; c.AstatementindicatingwhethertheproposedchangeisincompliancewithPartVII, Chapter 112,F.S.and Section 14,ArticleX of theState Constitution. Nounitoflocalgovernmentshallagreetoa proposed changeintheretirementbenefitsor liabilities ofalocal system,unlessthe administrator ofthe system,priorto adoption ofthe changebythegoverningbody,hasissuedastatementof actuarial impactoftheproposedchange uponthelocalretirementsystempriortothe last public hearing. Based directly on information from the City'sPensionPlanActuary,(GRS),and their Actuarial Impact Statement wecan make the following statement which was reviewed and verified by GRS. The savings provided by adopting the Ordinance amending the City's Pension Planis;an annual estimated savings of $60,363 forGeneral Employees andan estimated annual savings amount of $28,141 forAMSC,foranagrgregate estimated annualsavings amount of$88,505. Below isaGRS reviewed and verified table which reflects the information based on GRS' Actuarial Impact Statement. PENSION IMPACT STATEMENT SUMMARY INFORMATION Annual Aggregate %of City Contribution Based on Description Salaries Contribution Current Plan General Employees (Reflects 2/3 Participation Rate) Administration Management Service Class (AMSC) General Employees Tier II Pension Impact Cost Administration Management Service Class Pension Impact Cost General Employees Impact NetSavings Administration Management Service Class Impact Net Savings $1,637,049 $934,162 /7o" 7% $114,593 $65,391 $54,230 $37,250 -$60,363 -$28,141 Total Annual Estimated Savings -$88,504 *Notallof the non-participating general employees are receiving a7%City contribution;however 7% expresses the City's potential cost as employees may opt for that full benefit. ATTACHMENTS -Proposed Ordinance -September 14,2016,GRS Actuarial Impact Statement -Res.No 146-01-11294 -GRS Page 2 of 2 GRS Gabriel RoederSmith&Company One East Broward Blvd.954.527.1616 phone Consultants &Actuaries Suite505 954.525.0083 fax Ft.Lauderdale,FL 33301-1804 www.gabrielroeder.com September 14,2016 Pension Board South Miami Pension Fund c/o Mr.Scott Baur Pension Administrator The Resource Centers,LLC 4360 Northlake Boulevard,Suite 206 Palm Beach Gardens,Florida 33410 Re:South Miami Pension Plan Actuarial Impact Statement Dear Scott: As requested,weare pleased to enclose twelve (12)copies of our Actuarial Impact Statement as of October 1,2015 forthe proposed Ordinance under the South Miami Pension Plan(Plan)with theState of Florida (copy enclosed). Background -The Plan is currently closedto General Employees hired onorafter October 1,2011.General Employees notinthePlancan currently elect to participate in the City's Defined Contribution (DC)Plan(s). Proposed Ordinance -The proposed Ordinance: >For General Employees oAddaten percent (10%)capon employee contributions. o Re-open thePlantoGeneral Employees effective October 1,2016. General Employees currently inthe City's DC Plan willhavea one-time optiontoelecttojointhePlanasaTierTwoGeneralEmployee.Credited servicestartsatdate of hireforallpurposesexceptforpurposes of benefit accrual.Creditedserviceforpurposes of benefit accrualstartsas of October 1,2016.Normal retirement isage65and attainment often (10) years of creditedservice.Finalaverage compensation istheaverage of the highest eight (8)years of compensation.The benefit accrual rate (multiplier)is 1.6%foreachyear of creditedservice.Fullvestingupon completion often (10)years of credited service.Tier Two General EmployeesAMSCmemberscontributeseven percent (7%)of compensation.No supplemental cost-of-living adjustments (COLA). Mr.Scott Baur Septembers,2016 Page Two >For Administration Management Service Class (AMSC)-Create a new class ofbenefitsavailableto employees whoholdcertainmanagementpositions effectiveOctober1,2016.Creditedservicestartsatdateofhireforallpurposes exceptforpurposes of benefitaccrual.Creditedserviceforpurposes of benefit accrualstartsas of October1,2016.Normalretirementisage65andcompletion ofthree(3)yearsofcreditedservice.Earlyretirementisage55andcompletion often (10)years of creditedservice.Benefitsarereducedforearly commencement of retirement benefits.Finalaverage compensation istheaverage ofthehighesteight(8)yearsofcompensation.Thebenefitaccrualrate (multiplier)is1.6%foreachyear of creditedservice.Fullvestingupon completion of three (3)years of credited service.AMSC members contribute seven percent (7%)of compensation.No supplemental cost-of-living adjustments (COLA). Cost-Re-opening thePlantoGeneralEmployeeswithTierTwo Benefits resultsinan increaseintheNetCityAnnualRequiredContribution of $54,230andresultsinan increaseinEmployeeAnnualRequiredContributions of $49,111.Creation of aNew Tier of BenefitsfortheAMSCresultsinanincreaseintheNetCityAnnualRequired Contribution of $37,250andresultsinanincreaseinEmployeeAnnualRequired Contributions of $65,391.Combined,Re-openingthePlantoGeneral Employees with Tier Two Benefits PLUS Creation of a New Tier of Benefits for the AMSC results in an increase inthe Net City Annual Required Contribution of $91,480 and results inan increase in Employee Annual Required Contributions of $114,502. Filins Requirements -Wehave prepared the Actuarial Impact Statement forfiling with theState of Florida.Please notethatthis Statement must be signed and dated on behalf of theBoard of Trustees.Copies of theOrdinanceupon passage atfirst reading along withthesignedanddated Actuarial ImpactStatementare generally required tobefiled with the State atthe following address: Mr.Douglas E.Beckendorf,A.S.A. Bureau of Local Retirement Services Division of Retirement Building 8 Post Office Box 9000 Tallahassee,Florida 32315-9000 WeunderstandtheStaterequiresfundingnolaterthanthefiscalyearnextfollowingthe effective date of the increases in costs resulting fromthe Ordinance. Pleaseforwardacopy of theOrdinanceuponpassageatsecondreadingtoupdateour files. Actuarial Assumptions and Methods,Plan Provisions,Financial Data.Member CensusData-The actuarial assumptions andmethods,financialdataand member Gabriel Roeder Smith 6c Company Mr.Scott Baur September 14,2016 Page Three censusdataemployedforpurposesofourActuarialImpactStatementarethesame actuarial assumptions andmethods,financial dataandmembercensusdatatobeutilized forthe October 1,2015 Actuarial Valuation unless otherwise specified herein. Inordertoprovideanestimatedimpactoncostspriortoemployee'selectionsweneeded anassumptionsastotheelectionratesoftheemployees.Basedondiscussionswiththe City,wehaveassumedtwo-thirdsofGeneralEmployeesnotinthePlanandalleligible AMSC employees willelectto join thePlaneffective October 1,2016. In addition,a norma]cost as of October 1,2015 was calculated to estimate the normal cost attributable fortheplanyear beginning October 1,2016 forfunding purposes. ThePlan provisions employedforpurposes of ourActuarialImpactStatementarethe samePlan provisions tobeutilizedforthe October 1,2015 Actuarial Valuation as modified above. Administration Management Service Class positions are City Manager,City Attorney, CityClerk,Assistant /Deputy City Manager,Finance Director /Chief Financial Officer, Chief of Police,Planning and Zoning Director,Building Director,Directory of Public Works,Chief Administrative Officer (currently Finance Office Manager),Chief Procurement Officer (currently Purchasing Manager)and Parks and Recreation Director. This Actuarial Impact Statement is intended to describe the estimated future financial effects of the proposed Plan provision changesonthePlan,andisnot intended asa recommendationinfavorofthebenefitchangesorinopposition of thePlanprovision changes. Ifallactuarialassumptionsaremetandifallfutureminimumrequiredcontributionsare paid,PlanassetswillbesufficienttopayallPlanbenefits.Planminimumrequired contributionsaredeterminedincompliancewiththerequirements of theFlorida Protection of PublicEmployee Retirement BenefitsActwith normal cost determined asa levelpercent of coveredpayrollandaleveldollaramortizationpaymentusinga maximum amortization period of 25years. TheUnfundedActuarialAccruedLiability (UAAL)maynotbeappropriateforassessing thesufficiency of Planassetstomeettheestimatedcostofsettlingbenefitobligationsbut maybe appropriate for assessing theneedfororthe amount of future contributions.The UAAL would be different if it reflected the market value of assets rather than the smoothed actuarial value of assets. Thesecalculationsarebaseduponassumptionsregardingfutureevents.However,the Plan's longtermcostswillbedeterminedbyactualfutureevents,whichmaydiffer Gabriel Roeder Smith8c Company Mr.Scott Baur September 14,2016 Page Four materiallyfromthe assumptions made.These calculations arealsobaseduponpresent PlanprovisionsthatarereferencedinthisActuarialImpactStatement. Ifyouhavereasontobelievethe assumptions usedare unreasonable,thePlanprovisions areincorrectlydescribedasreferenced,importantPlanprovisionsrelevanttothis proposedActuarialImpactStatementarenotdescribedorthatconditionshavechanged sincethecalculationsweremade,youshouldcontacttheundersignedpriortorelyingon information inthis Actuarial ImpactStatement. Future actuarial measurements maydiffer significantly fromthe current measurements presentedinthisreportduetosuchfactorsasthefollowing:Planexperiencediffering fromthatanticipatedbythe economic ordemographicassumptions;changesineconomic ordemographic assumptions;increasesordecreasesexpectedaspart of thenatural operation of the methodology usedforthese measurements (suchastheend of an amortization period);andchangesinPlan provisions or applicable law.Duetothe limitedscope of the actuary's assignment,the actuary didnot perform an analysis of the potential range of such future measurements. This Actuarial Impact Statement shouldnotbereliedonforany purpose otherthanthe purpose described inthe primary communication.Determinations of the financial results associated withthe benefits describedinthisreportina manner otherthanthe intended purpose may produce significantly different results. This Actuarial Impact Statement hasbeen prepared by actuaries whohave substantial experiencevaluingpublicemployeeretirementplans.Tothebest of ourknowledgethe informationcontainedinthisreportisaccurateandfairlypresentstheactuarialposition ofthePlanas of theActuarialImpactStatementdate.Allcalculationshavebeenmadein conformitywithgenerallyacceptedactuarialprinciplesandpractices,withtheActuarial Standards of Practice issuedbytheActuarialStandardsBoardandwith applicable statutes. ThisActuarialImpactStatementmaybeprovidedtopartiesotherthantheBoardonlyin itsentiretyandonlywiththepermissionofanapprovedrepresentative of theBoard. Thesigning actuaries are independent of thePlansponsor. If youhavereasonto believe thattheinformation provided inthis Actuarial Impact Statementisinaccurate,orisinanywayincomplete,orifyouneedfurtherinformationin ordertomakeaninformeddecisiononthesubjectmatterofthisreport,pleasecontactthe undersigned prior to making such decision. TheundersignedareMembers of theAmericanAcademyofActuariesandmeetthe Qualification Standards of the American Academy of Actuaries to render theactuarial opinion contained herein. Gabriel Roeder Smith &Company Mr.Scott Baur September 14,2016 Page Five Ifyoushouldhaveanyquestionconcerningtheaboveorifwemaybe of further assistance with this matter,please donot hesitate to contact us. Sincerest regards, A&U^'J*-^%^«- Lawrence F.Wilson,E.A.,A.S.A. Senior Consultant and Actuary Enclosures Kelly L.Adams,E.A.,A.S.A. Consultant and Actuary Gabriel Roeder Smith6c Company ORDINANCE NO. AnOrdinanceamendingtheSouthMiamiPensionPlanto implement theCollective Bargaining Agreement between the City of South Miami and AFSCME Local 3294 andcreatinganew Administration ManagementServiceClass (AMSC)of employees intheSouthMiamiPensionPlanfortheCity of SouthMiamiandsettingforththe terms of thePlanasrelatedto the AMSC ;by Amending Chapter 16,Article II, Section 16-12,"Definitions"by Adding Definitions for Second Tier Member and AMSC and amending thedefinition of final averagecompensation,asitappliesto the AMSC ;by amending Section16-13,"Eligibility"toreopenthePlanfor certain General Employees andfor the AMSC ;by amending Section 16-14,"Pension benefits and retirement date"toset out the benefits forthosepersons who willjoin the Second Tier andfor those personsin the AMSC ;by amending Section 16-17 "Termination Benefits"to provide a vesting schedule for the AMSC ;by amending Sec.16-19,"Contributions"toplacea limit on the total contributions made in any fiscal year by General Employees and toset the contribution rate for the AMSC ;by amending Section 16-21,"Purchase of Credited Service"by allowing certain employees and elected officers to buy credited service. WHEREAS,the Cityof South Miami and the American Federation of State,County and Municipal Employees,AFL-CIO,City Employees Local 3294 (hereinafter "Union"),have entered intoa new Collective Bargaining Agreement ("Agreement"),effective June 22,2016 to June 21,2019;and WHEREAS,itis the purpose and intention of the Agreement to provide for salaries, fringe benefits and other terms and conditions of employment except as otherwise provided by Constitution,Statute,Charter,Ordinance,Administrative Order or Personnel Rules and Regulations;and WHEREAS,Florida law requires that if any provision ofa collective bargaining agreement isinconflictwith any ordinance over which the chief executive officer has no amendatory power,the chief executive officer shall submit to the appropriate governmental body having amendatory power a proposed amendment to such ordinance;and WHEREAS,the City Commission has decided to create a new class of employees, comprised of the Administration Management Service Class ("AMSC")and to permit members of the AMSCtojoin the South Miami Pension Plan and to provide for the terms of membership; WHEREAS,the City Commission has received and reviewed an actuarial impact statement related to such amendments;and WHEREAS,the City Commission wishes to change the terms of the South Miami Pension Plan to effectuate the changes called forin the Agreement;and 1 WHEREAS,theCityCommission deems ittobe in thepublic interest toprovide these changes to the pension plan; NOW,THEREFORE,BE IT HEREBY ORDAINED BY THE MAYOR ANDCITY COMMISSION OF THE CITY OF SOUTH MIAMI,FLORIDA,THAT: Section 1:That Chapter 16Article II,Section 16-12,"Definitions"oftheCityofSouth Miami Code of Ordinances is hereby amended by adding toit the following definitions: Definitions. *** AMSC Member shall mean the Administration Management Service Class.Itwill be composed of employees who hold only the following positions: City Manager City Attorney City Clerk Assistant /Deputy City Manager Finance Director/Chief Financial Officer Chief of Police Planning and Zoning Director Building Director Director of Public Works Chief Administrative Officer (currently Finance Office Manager) Chief Procurement Officer (currently Purchasing Manager) Parks and Recreation Director Employee shall mean any person employed full-timeby the employer ona regular, permanent basis.Elected officials shall be excluded.The city manager,cityclerk,and any employees persons defined as department heads within this section,shall be included within the definitionof employee,however such positions shallbe allowed a one-time opportunity to opt out,priortoeligibility date as defined in section 16-13 ofthis Code,(inwriting)ofthis pension plan. *** Second Tier Member shall mean general employees who are hired on or after October 1, 2016 who elect to ioin the South Miami Pension Plan,and general employees who were hired prior to October 1,2016 and not participating in the South Miami Pension Plan as of October 1,2016 who elect to ioin the South Miami Pension Plan. Section 2:ThatChapter 16 Article II,Section 16-12,"Definitions"ofthe City ofSouth Miami CodeofOrdinancesisherebyamendedbyamendingthe definition ofaverage final compensation as follows: Final averagecompensation shallmeantheparticipant's annual compensation,as determined bytheemployer,acting in a uniform andnondiscriminatory manner.For general employees,except for Second Tier Members and AMSC Members effective October 1, 2011,final average compensation shallbe averaged overthelastfive-yearperiod,provided however final average compensation over thelast five-year period shall notbe less than the final average compensation as of September 30,2011,under the definition offinal average compensation which existed as of September 30,2011.For Second Tier Members,final average compensation will be the average of the highest eight (8)years of credited service. For AMSC Members,final average compensation will be the average of the highest eight (8) years of credited service.In the event an AMSC Member has less than eight (8)years of credited service,final average compensation will be the average of all the participant's annual compensation over the period for which the Member received credited service.For members covered under the police officers and sergeants collective bargaining agreement,final average compensation shall be the best five-year period of the police officer or sergeant's career with the Cityof South Miami,provided however final average compensation over the best five-year period shall not be less than the final average compensation as of September 30,2011,under the definition offinal average compensation which existed as of September 30,2011.The best five(5)years is defined as the highest five(5),twenty-six (26) consecutive pay periods withina police officer or sergeant's career and such consecutive year periods shall not overlap one another.For all other members,final average compensation shall be averaged over the last three-year period -but not less than the average of the participant's five(5)best years of annual compensation during the last ten (10) years of service.For all members final average compensation will end on the participant's retirement date,date of disability,date of termination of employment or the date of termination of the plan,whichever is applicable. Section 3:That Chapter 16 Article II,Section 16-12,"Definitions"of the Cityof South Miami Code of Ordinances is hereby amended by amending the definition of credited service as follows: Credited service shall mean participant's continuous employment with the employer computed in completed calendar months while a member of the South Miami Pension Plan. For Second Tier Members and AMSC Members who elect to ioin the South Miami Pension Plan as a result of this Ordinance,credited service shall include continuous employment prior to becoming a member of the South Miami Pension Plan for all purposes except for purposes of benefit accrual.Leaves of absence authorized by the employer with periods of absence in connection withmilitary service during which the participant's employment rights were protected bylaw shall not be considered to have broken the continuity ofhis employment; provided,that the employee has become re-employed by the employer withintimeperiod provided in The Uniform Service Employment and Reemployment Rights Act (USERRA)and 3 forpoliceofficers Chapter 185 of the Florida Statutes after honorable discharge from the military service.Further,that the employee has paidan amount equal to the contributions that would have been made during such leave of absence based on the participant's salary immediately priorto entry intomilitary service,provided that police officer participants shall notbe required to make such payment of contributions per Chapter 185,F.S.No employee shall be eligible to become a participant during such absence. Section 4:That Chapter 16 Article II,Section 16-13,""Eligibility"of the Cityof South Miami Code of Ordinances is hereby amended as follows: Eligibility. (a)Each employee employed by the employer on October 1,1965,shall be a participant on the first participation date onwhichhe has completed two(2)years of credited service and has attained his twenty-fifth birthday. (b)Each employee who becomes an employee subsequent to October 1,1973, shall be a participant on the first participation date on which he/she has completed six(6) months of credited service and has obtained his/her twentieth birthday.For all current employees as of October 1,1995,each fiscal year there will be a window for joining the retirement system;i.e.October 1 through October 31. (c)It shall become mandatory forall employees hired on or after October 1,1995, tojoin the pension plan after completion of six (6)months of employment by the city. (d)All general employees who are hired by the Cityof South Miamion or after October 1,2011,will not be eligible to participate in the South Miami Pension Plan.All general employees hired on or after October 1,2011,shall join the ICMA-RC a_defined contribution plan of the Cityof South Miami(DC)457 Plan. (e)Employees who are hired onor after October 1,2011,and are classified as police officer or sergeant,shall enter the pension plan immediately upon being hired as a sworn law enforcement officer. (f)All general employees hired onor before September 30,2011,will have a one time option to either remain in the South Miami Pension Plan or elect to discontinue membership. (1)For general employees who choose to discontinue membership in the South Miami Pension Plan,employees shall provide inwritingno later than December 31,2011,to the City's Human Resources Department,a letter stating their choice to discontinue membership in the South Miami Pension Plan.The letter shall state the percentage the employee will contribute towards the defined contribution planlCMA-RC 457 which contribution rate shall be effective until September 30,2012.The effective date of the change ison the first pay period in January 2012. (2)Should a general employee choose to discontinue membership in the South Miami Pension Plan,the general employee will be refunded the contribution which they contributed during their participation in the South Miami Pension Plan and may rollover such amount into the defined contribution plannewty established ICMA RC 457 Plan. (g)Notwithstanding sections (a)through (f)above,general employees who are not participating in the South Miami Pension Plan as of October 1,2016,and general employees hired on or after October 1,2016 shall be given a one-time irrevocable election to either become a Second Tier Member of the South Miami Pension Plan or ioina defined contribution plan of the City of South Miami.The irrevocable election must be made within ninety (90)days from the later of the effective date of this Ordinance or date of hire.If no election is made,the general employee will be placed in the South Miami Pension Plan. (h)All persons who hold positions listed in the AMSC in the definition section above and who are not participating in the South Miami Pension Plan as of October 1,2016, shall be given a one-time irrevocable election to either ioin the South Miami Pension Plan or ioin a defined contribution plan of the City of South Miami.The irrevocable election must be made within ninety (90)days from effective date of this Ordinance.All AMSC Members who are,on the effective date of this Ordinance,participating in the South Miami Pension Plan will have their accrued benefits as of the date of the adoption of this Ordinance reflect their compensation through date of termination for purposes of final average compensation as defined immediately prior to the effective date of this ordinance. All persons who are not AMSC Members and are not participating in the South Miami Pension Plan as of October 1,2016,but thereafter become a member of the AMSC in the definition section above,upon becoming a member of the AMSC shall be given a one-time irrevocable election to ioin the South Miami Pension Plan or ioin a defined contribution plan of the City of South Miami.The irrevocable election must be made upon becoming a member of the AMSC.All those general employees,who,after the effective date of the Ordinance, become AMSC Members will have their accrued benefits as of the date they become AMSC Members reflect their compensation through date of termination for purposes of final average compensation as defined immediately prior to the effective date they become AMSC Members. (i)Notwithstanding Sections (a)through (h)above,all persons who join the South Miami Pension Plan on or after the effective date of this Ordinance will not be reguired to have completed six (6)months of service prior to joining and are reguired to participate immediately upon hire or upon election to ioin for members who were hired prior to the effective date of this Ordinance. Section 5.That Chapter 16 Article II,Section 16-14,"Pension benefits and retirement date"of the Cityof South Miami Code of Ordinances is hereby amended as follows: (a)Retirement date.Thenormalretirementdate with full unreduced pensionbenefitsfora participant,shall be as follows: (1)Generalemployees.Shallbethefirstdayofthe calendar monthcoincident with or,otherwise,next following the later of the participant's sixtieth birthday and the date onwhich the participant has completed ten(10)years of credited service.General employees participatingintheplan as of September 30,2011,will remaineligibleto retireatthe age of fifty-five (55)andthecompletionoften(10)years ofcredited service and obtain their accrued benefits earned through September 30,2011,at such time.Benefit accruals earned onor after October 1,2011,including increases due to increases infinal average compensation,may be paidat the new normal retirement date of attainment of age sixty(60)and completion of ten (10)years of credited service.General employees who were participating in the planon September 30, 2011,may receive their benefits accrued after September 30,2011 upon retirement on the first day of any month following retirement upon attaining age fifty-five (55)and ten (10)years of credited service reduced one-fifteenth (1/15th)for each year benefit commencement precedes the later of age sixty(60)and ten(10)years of credited service.Or,in the alternative,those general employees who were participating in the plan as of September 30,2011,may defer commencement of their benefit accrued after September 30,2011,until attainment of age sixty(60)and ten (10)years of credited service.Under no circumstance will a general employee member who was participating in the plan on September 30,2011,be allowed to receive their fifty-five (55)and ten (10)distribution and then keep working. (2)Second Tier Members.The earlier of (a)age 65 and completion of ten (10) years of credited service:or (b)completion of thirty-three (33)years of credited service. (3)AMSC Members.The earlier of (a)age 65 and completion of three (3)years of credited service:or (b)completion of thirty-three (33)years of credited service. (A)Earlyretirement. (1)A general employee participant as of September 30,2011,and AMSC Participants may elect an early retirement date which may be the first day of any calendar month coincident with,or subsequent to the participant's fifty-fifth (55th) birthday and completion of ten (10)years of credited service.The pension benefits payable to any such participant on early retirement date shall be equal to an actuarial equivalent,determined in accordance with the table below,to the amount of pension to whichis entitled upto early retirement date in accordance with subsection (b). Table—General Employee participant as of September 30,2011,AMSC Participants Participant—Percentages for early retirement date Years prior to normal retirement date Percentage Years prior to normal retirement date Percentage 1 93.33 2 86.67 3 80.00 4 73.33 5 66.67 6 63.33 7 60.00 8 56.67 9 53.33 10 50.00 (2)Police officers.Shall be the completion of twenty-five (25)years of credited police service,regardless of age,or attainment of age sixty (60)and completion of ten (10)years of credited police service. (3)Vesting of benefits uponnormal retirement date.Any provision of this plan to the contrary notwithstanding,a member's accrued benefit shall become one hundred (100)percent vested upon the attainment of the normal retirement date. (b)Amount of pension.The yearly amount of pension payable toa participant on the first day of the month coincident withor next following the participant's retirement date shall be an amount equal to the participant's number of completed years of credited service multipliedby a percentage offinal average compensation as stated herein. (1)Basic benefit. a.A basic benefit for participant's retiring prior to October 1,1970,shall be determined bymultiplying 1.6 percent of the participant's final average compensation by the number of completed years of credited service,excluding the firsttwo(2)years of such service and any additional service completed by the participant priorto the participant's twenty-fifth birthday. b.However,as to those participants who became an employee subsequent to October 1,1973,there shallonlybe excluded thefirstsix(6)months of such service plusanyadditional service completedpriortothe participant's twentiethbirthday and/or additional service completed priorto the participant becoming eligibletojoin this pension plan. (2)General employees. a.Effective October 1,1993,the pension benefit accrual rate (multiplier)for general employee participants,shallbe increased from 1.6 percent to 1.8 percent for services performed in the 1993-1994 fiscal year. b.Effective October 1,1994,the pension benefit accrual rate (multiplier)for general employee participants,shallbe increased from 1.8 percent to 1.9 percent for services performed in the 1994-1995 fiscal year. c.Effective October 1,1995,the pension benefit accrual rate (multiplier)for general employee participants shall be increased from 1.9 percent to 2.25 percent for services performed in the 1995-1996 fiscal year. d.Effective October 1,1996,the pension benefit accrual rate (multiplier)for general employee participants shall be increased from 2.25 percent to 2.50 percent for services performed in the 1996-1997 fiscal year.Effective October 1,2001,the pension benefit accrual rate (multiplier)for general employee participants shall be 2.25 percent forall services performed through September 30,1998. e.Effective October 1,1997,the pension benefit accrual rate (multiplier)for general employee participants shall be increased from 2.50 percent to 2.75 percent for services performed in the 1997-1998 fiscal year and thereafter.Effective October 1, 2001,the pension benefit accrual rate (multiplier)for general employee participants shall be 2.50 percent for services performed in the 1998-1999 fiscal year and 2.75 percent for services performed thereafter. f.Effective October 1,2002,the pension benefit accrual rate (multiplier)for general employee participants shall be 2.50 percent forall services performed through September 30,1999,and 2.75 percent for services performed thereafter. g.For all service earned onor after October 1,2011,the pension benefit accrual rate (multiplier)for general employee participants shall be reduced from 2.75 percent to 2.25 percent. lL For all service earned on or after October 1,2016,by Second Tier Members the pension benefit accrual rate (multiplier)shall be 1.60 percent. L For all service earned on or after October 1,2016 by AMSC Members of the South Miami Pension Plan,the pension benefit accrual rate (multiplier)will be 3.00 percent. 8 (4)Supplemental benefit.A supplemental benefit,ifanyis payable,determined on each valuation date which occurs after the participant's normal retirement date.The supplemental benefitshallbe equal to(1)an amount determinedatthefirst applicable valuation date by multiplying the yearly amount of basic benefitbythe percentage,ifany,bywhich the current index exceeds the base index and (2)an amount determined at each subsequent valuation date,where the current index exceeds the priorindex,or where the priorindex exceeds the current index,by reducing such sum bythe product of such sum and the percentage by which the prior index exceeds the current index;provided,however,that inno event shall the supplemental benefit payable at any timebe greater than the excess of(1)the basic benefit increased at three (3)percent compounded annually from the initial valuation date applicable to the participant over (2)the basic benefit.Inno event shall the supplemental benefit be reduced below zero so as to affect the amount of basic benefit.Supplemental benefits shall commence or be adjusted as of each October 1 and shall continue thereafter for the following eleven (11)months.Effective October 1,2011,the supplemental benefit Cost ofLiving Adjustment (COLA)for general employees (eligible retirees and/or beneficiaries)is eliminated for future benefit accruals,including increases in the current accrued benefit due to increases infinal average compensation.General employees will receive the supplemental benefit on their accrued benefit as of September 30,2011.Second Tier Members shall not be eligible for the supplemental benefit cost of living adiustment.AMSC Members shall not be eligible for the supplemental benefit cost of living adiustment for benefit accruals on or after October 1,2011. Section 6.That Chapter 16,Article II,Section 16-17(b),"Termination of Employment",shall be amended to provide as follows: (b)Any such participantshall be entitled to elect Option1orOption2,as described below,except that Option 2 shall be automatically considered as having been elected by the Participant unless Option1is elected before the participant's normal retirement date. Option 1:A cash payment ofan amount equal to the aggregate of the contributions made by the participant priortoterminationof employment.Provided that policeofficer participants eligibletowithdrawtheir contributions fromthis pension planmayonly withdraw their contributions without interest. Option2:Pension benefits commencing on what otherwise would have been thenormal retirement date of the participant inan amount equal to the greater of that which can be providedby the aggregate ofthe contributions made by the participant priorto the termination of employment,with credited interest compounded annually at the rate of three (3)percent per annum fromtheendofthe year of payment to the date onwhich pensionbenefits commence;oranamountdeterminedby multiplying theamountof pensionto which theparticipantisentitled in accordance with sectionsubsection 16- 14(a)or 16-14(b),whicheverisapplicablebya percentage determined in accordance withthe following schedule onthe basis ofthelengthof credited service. Number of years of credited service Percentage Less than 10 0 11 10 12 20 13 30 14 40 15 50 16 60 17 70 18 80 19 90 20 or more 100 Policeofficer participants,includingbargainingunit employees,shallbeone hundred (100) percent vested in the retirement planupon completion often (10)years continuous full-time swornpolice service.Accordingly,effective October 1,1993,allpoliceofficer participants, including members of the bargaining unit,who are inthisplan effective October 1,1993 and have between ten (10)years and twenty(20)years of continuous swornpolice service will be one hundred (100)percent vested. All general employees shallbeonehundred (100)percent vested inthe pension planupon completion often (10)years of continuous credited service.All Second Tier Members shall be one hundred (100)percent vested in the pension plan upon completion often (10)years of continuous service.AMSC Members shall be one hundred (100)percent vested in the 10 pension plan upon completion of three (3)years of continuous service.General employees and AMSC Members whoopttoiointhe defined contribution planof the City of South Miami shallvestafterone (1)yearofservice.Accordingly,effective October1,1995, all generalemployeeswhoare in this plan asofOctober1,1995,andhaveten (10)years ormoreof continuous service will be one hundred (100)percent vested. Section 7.That Chapter 16,Article II,Section 16-19 "Contributions"is amended as follows: (a)Each participant,except as otherwise provided herein,shall contribute in each calendar year towards the cost ofthe participant's pension an amount equal to three (3)percent of the participant's earnings.With the exception of police officer participants,Except as otherwise provided herein,no participant shall make any contributions toward the cost of any past service pension towhich the participant is entitled under thisplan.The employer shall contribute the balance of the cost,actuarially determined,ofproviding the benefits of the plan.The employer's contributions shall be deposited into the pension planon at least a quarterly basis.Effective October 1,1995,the pension contribution forall general employee participants,including those general employees that are now members of the retirement system,shall be increased from three (3)percent tofive(5)percent of earnings.Effective October 1,2001,the pension contribution forall general employee participants,including those general employees that are now members of the plan,shall be increased fromfive(5) percent to seven (7)percent of earnings.Police officer participant including bargaining unit employees,that are now members of the plan and any police officers who join the plan in the future shall,effective October 1,1993,have their contribution increased from three (3) percent tofive(5)percent of earnings.Effective October 1,2001,police officer participants shall contribute 7.5 percent of earnings. (1)General employee participants.Should the employer's annual contribution be actuarially determined to exceed twelve (12)percent,both the employer and the participants shall share equally the amount in excess of twelve (12)percent for that fiscal year Effective October 1,2005,should the total participant and employer's annual contribution be actuarially determined to exceed fourteen (14)percent,both the employer and the general employee participants shall share equally the amount in excess of fourteen (14)percent for that fiscal year.Notwithstanding the above,the maximum general employee contribution rate will be 10%of earnings for fiscal years beginning on or after October 1,2016. (2)Police officerparticipants.Effective October 1,2004,if the totalpoliceofficer participants'contributions and employees contribution exceeds fifteen(15)percent of covered policepayrollfor any fiscal year,the excess over fifteen (15)percent shall be shared equally by the employer and policeofficer participants.Police officer participant contributions shall be deposited in the plan immediately after each pay period.Effective October 1,2001, an amount actuarially determined,toprovidefor certain minimum benefits required by Chapter 185,F.S.shall be paidfrom the South Miami Police Officers Retirement Trust Fund totheplan each year,regardless ofthegrowthordiminutioninfuture Chapter 185,F.S. funds. 11 (3)Second Tier Member participants.SecondTierMembersshallcontributethree (3) percent of earnings. (4)AMSC Member participants in the South Miami Pension Plan.AMSC Membersshall contribute seven (7)percent of earnings. (5)General employees and AMSC Member participants inthe defined contributionplan of the City of South Miami referenced in Section 16-13 above.General employees and AMSC Member participants in the defined contribution plan of the City of South Miami referenced in Section 16-13 above shall contribute a minimum of three (3) percent of earnings.The City of South Miami shall contribute seven (7)percent of earnings. (6)[Otherparticipants.]Effective October 1,2009,and for one (1)fiscal year thereafter participant contributions for the following employee designations shall be reduced from the above calculated percentages by two (2)percentage points: (a)Nonbargaining unit employees. (b)Members of the AFSME bargaining unit. (c)Members of the police lieutenants and captains bargaining unit. (7)415(c)Limitations.To the extent applicable,all employee contributions shall be in accordance with Subsection 415(c)of the Internal Revenue Code and all regulations thereunder,which subsections and regulations are incorporated herein by reference. (b)All amounts paid by the employer to the insurance company in accordance with this plan shall represent irrecoverable contributions,except as may be otherwise provided in subsection 16-22(b). (c)The employer shall pay the reasonable expenses of the pension board,including any expenses for legal and actuarial services. Section 8.That Chapter 16 Article II,Section 16-21,"Purchase of Credited Service" of the Cityof South Miami Code of Ordinances is hereby amended as follows: Purchase of credited service. (a)Police officer participants,including bargaining unit employees shall be allowed to purchase credit for active duty in the U.S.military service,priorto employment as apolice officerwiththecityin accordance withUSERRAand applicable state law.Thisprovisionshall not cover reserve active duty or weekend drill.Police officers electing to purchase prior militarytime will do so at total cost to the participant withno cost assumed by the city. (b)All participants in the city pension plan shall be allowed to purchase credit for immediate past city service uptoamaximumoffive(5)years in the city pension plan pursuant to procedures promulgated at the timeof such purchase.All costs for approved 12 purchase of past city services shallbeonehundred (100)per cent bornebytheparticipant with nocost assumed bythe city.Shouldthe participant bepermittedto purchase past city service over a period of time,the effective date of credited service shall be on the date such purchase is paid infull. (c)Any participant classified as apoliceofficerwho retires between November 1, 2011,and before November 15,2011,shallbeeligiblefora retirement incentive,whichshall be equal to normal retirement provided: (1)The Cityof South Miami will pay for the full actuarial cost,no later than the earlier of benefit commencement or December 1,2011,ofupto eight (8)additionalmonthsofanypriorcredited service earned bytheelecting participant police officer before heor she became a participant in the South Miami Pension Plan. (d)For all Second Tier Members hired on or after October 1,2011,the following will apply: (1)Second Tier Members will be given an option,within ninety (90)days after the effective date of this Ordinance amendment,to purchase continuous service for purposes of benefit accrual for any and all years of service,up-to the number of years they have worked at the City of South Miami at any time while employed at the City of South Miami ina position eligible for participation in the South Miami Pension Plan.Employees must pay the full actuarial cost of the service they purchase,as calculated by the South Miami Pension Plan's actuary,and such purchase will be at the member's sole expense.The cost of obtaining the actuary's calculation of the service purchase will be paid one time by the Plan. The cost of obtaining any subseguent calculation will be at the Plan member's expense.The pension benefits purchased for all persons exercising this service purchase option are the benefits for Second Tier Members including the pension benefit accrual rate (multiplier)of 1.6%. (e)For all AMSC Members hired on or after October 1,2011,the following will apply: (1)All AMSC Members who did not previously participate in the South Miami Pension Plan,will be given an option,within ninety (90)days after the effective date of this Ordinance amendment,to purchase continuous service for purposes of benefit accrual for any and all years of service,up to the number of years they have worked at or been an elected officer for the City of South Miami at any time while employed at or serving as an elected officer for the City of South Miami ina position eligible as of October 1,2016,for participation in the South Miami Pension Plan.AMSC Members must pay the full actuarial cost of the service they purchase,as calculated by the South Miami Pension Plan's actuary,and such purchase will be at the AMSC Member's sole expense.The cost of obtaining the actuary's calculation of the service purchase will be paid one time by the Plan.The cost of obtaining any subseguent calculation will be 13 at the Plan member's expense.The pension benefits purchased for all persons exercising this service purchase option are the benefits for all AMSC Members including the pension benefit accrual rate (multiplier)of 3.0%. Section 9.Rules of Construction.This ordinance will be construed in accordance with Florida statutory law and Florida case law. Section 10.Codification.The provisions ofthis ordinance shall become and be made partofthe Code of Ordinances oftheCityofSouth Miami as amended;thatthe sections ofthis ordinance maybe renumbered or re-lettered to accomplish such intention; and that the word "ordinance"may be changed to "section"or other appropriate word. Section 11.Severability.Ifany section,clause,sentence,or phrase ofthis ordinance isfor any reason heldinvalidor unconstitutional bya court of competent jurisdiction,thisholdingshallnotaffectthevalidityofthe remaining portions ofthis ordinance. Section 12.Ordinances in Conflict.All ordinances or parts of ordinances and all section and parts of sections of ordinances in direct conflict herewith are hereby repealed. Section 13.Effective Date.This ordinance shall become effective upon enactment. PASSED AND ENACTED this ATTEST: CITY CLERK 1st Reading 2nd Reading day of READ AND APPROVED AS TO FORM: LANGUAGE,LEGALITY AND EXECUTION THEREOF CITY ATTORNEY 14 2016. APPROVED: MAYOR COMMISSION VOTE: Mayor Stoddard: Vice Mayor Welsh Commissioner Edmond: Commissioner Harris: Commissioner Liebman: South Miami Pension Plan Actuarial Impact Statement as of October 1,2015 A.Description of Proposed Amendment Re-openthePlantoGeneralEmployees.CurrentGeneralEmployeesnotinthePlanandGeneralEmployees hiredonorafterOctober1,2016 willbegivenaonetimeoptiontojointhePensionPlaneffectiveOctober 15 2016.DependingonjobclassificationnewmemberswillparticipateinTierTwoortheAdministration Management Service Class (AMSC). General Employees -Current Members Maximumgeneralemployeecontributionwillbetenpercent (10%)of pay. General Employees -Tier Two Full vesting upon completion often (10)years of creditedservice. Futureservice benefit multiplier is1.6%. Creditedservicefromdate of hireisusedforallpurposesexceptbenefitaccruals. FinalAverage Compensation willbetheaverage of thehighesteight(8)years of compensation. Normal retirement istheearlier of (a)attainedage65andcompletion often (10)years of creditedserviceor(b) completion of thirty-three (33)years of credited service. Employees will contribute three percent (3%)of pay. Nocost of living adjustments willbe provided. Administration Management Service Class (AMSC) Employees whoholdthe following positions willbelongtothe AMSC. City Manager City Attorney City Clerk Assistant /Deputy City Manager Finance Director /Chief Financial Officer Chief of Police Planning and Zoning Director Building Director Director of Public Works Chief Administrative Officer (currently Finance Office Manager) Chief Procurement Officer (currently Purchasing Manager) Parks and Recreation Director South Miami Pension Plan Actuarial Impact Statement as of October 1,2015 A.Description of Proposed Amendment (cont'd) Administration Management Service Class (AMSC)(cont'd) Fullvestingupon completion of three(3)years of creditedservice. Futureservicebenefit multiplier is3.0%. FinalAverage Compensation willbetheaverageofthehighesteight(8)years of compensation. Normalretirementistheearlier of (a)attainedage65andcompletion of three(3)years of creditedserviceor (b)completion of thirty-three(33)years of creditedservice. Early retirement isattainedage55andcompletion often (10)years of creditedservicewithbenefitsreducedby 1/15 foreachofthefirst5yearspriorto normal retirement and1/30foreachofthenextfiveyearspriorto normal retirement. AllAMSC members willcontributesevenpercent(7%)ofpay. AMSC members currentlyinthePlanas General Employees willhavetheirservicefrozenfor benefits accrued asaGeneralEmployeeas of September30,2016. Nocostoflivingadjustmentswillbeprovided. B.An estimate ofthecostof implementing this amendment (see attachment) C.Inmy opinion,the proposed changes arein compliance with Part VII,Chapter 112,Florida Statutes and Section 14,ArticJp~X ofthe State Constitution. mt/LAQ +S South Miami Pension Plan Actuarial Impact Statement as of October 1,2015 (General Employees) A.Participant Data 1.Active participants 2.Retiredparticipantsandbeneficiaries receiving benefits 3.Disabled participants receiving benefits 4.Terminated vested participants 5.Annualpayroll of active participants 6.Expectedpayroll of activeemployeesforthe following year 7.Annual benefits payable tothose currently receiving benefits B.Assets 1.Market Value of Assets 2.Smoothed Actuarial Value of Assets Preliminary Valuation 10/01/2015 32 Addition of Tier Two 10/01/2015 75 Addition of Tier Two &AMSC 10/01/2015 84 $ 25 0 4 1,534,040 $ 25 0 4 3,171,089 $ 25 0 4 4,105,251 $1,534,040 $3,171,089 $4,105,251 $579,427 $579,427 $579,427 $ $ 13,584,839 13,547,393 $ $ 13,584,839 13,547,393 $ $ 13,584,839 13,547,393 Gabriel Roeder Smith &Company South Miami Pension Plan Actuarial Impact Statement as of October 1,2015 (General Employees) C.Liabilities 1.Actuarial present value of futureexpectedbenefit payments for active members a.Retirement benefits b.Vesting benefits c.Death benefits d.Disability benefits e.Refunds f.Total 2.Actuarial present value of future expected benefit payments for terminated vested members 3.Actuarial present value of future expected benefit payments for members currently receiving benefits a.Service retired b.Disability retired c.Beneficiaries d.Miscellaneous e.Total 4.Total actuarial present value of future expected benefit payments 5.Actuarial accrued liabilities 6.Unfunded actuarial liabilities Preliminary Valuation 10/01/2015 Addition of Tier Two 10/01/2015 Addition of Tier Two &AMSC 10/01/2015 $4,440,425 5!5,041,623 $5,536,120 658,690 863,694 923,337 26,079 30,271 32,962 299,879 359,412 385,575 46,783 59,750 60,081 5,471,856 $6,354,750 6,938,075 1,029,283 $1,029,283 6,982,994 0 0 66,279 6,982,994 0 0 66,279 $7,049,273 $7,049,273 $13,550,412 $ $12,595,335 $ $(952,058)$ 14,433,306 12,595,335 (952,058) 1,029,283 6,982,994 0 0 66,279 $7,049,273 $15,016,631 $12,595,876 $(951,517)* *Reflectstransfer of twocurrentGeneralEmployeeMemberstoAMSC -2- Gabriel Roeder Smith &Company South Miami Pension Plan Actuarial Impact Statement as of October 1,2015 (General Employees) D.Statement of Accumulated Plan Benefits 1.Actuarialpresentvalue of accumulated vested benefits a.Participantscurrentlyreceivingbenefits b.Other participants c.Total 2.Actuarial present value of accumulated non- vestedplan benefits 3.Totalactuarialpresentvalue of accumulated plan benefits E.Pension Cost 1.Totalnormal cost (including expenses) 2.Paymentrequiredtoamortizeunfundedliability 3.Interest adjustment 4.Totalrequired contribution 5.Item4asa percentage of payroll 6.Estimated member contributions 7.Item6asapercentage of payroll 8.Estimated State contributions 9.Item8asa percentage of payroll 10.Netamount payable byCity 11.Item 10 asa percentage of payroll Preliminary Valuation 10/01/2015 Addition of Tier Two 10/01/2015 Addition of Tier Two &AMSC 10/01/2015 $6,982,994 $6,982,994 $6,982,994 4,461,150 4,461,150 4,461,150 $11,444,144 $11,444,144 $11,444,144 311,149 311,149 311,149 $11,755,293 $11,755,293 $11,755,293 $202,926 $306,267 $408,908 (88,215)(88,215)(88,170) 4,079 7,754 11,406 $202,926 $306,267 $408,908 13.2%9.7%10.0% $107,383 '$156,494 3 $221,885 : 7.0%4.9%5.4% $0 $0 $0 0.0%0.0%0.0% $95,543 $149,773 $187,023 6.2%2 4.7%4 4.6%' -3- Gabriel Roeder Smith &Company South Miami Pension Plan Actuarial Impact Statement as of October 1,2015 (General Employees) F.Disclosure of Following Items: 1.Actuarial present value of futuresalaries-attained age 2.Actuarialpresentvalue of futureemployeecontributions -attained age 3.Actuarial present value of future contributions from other sources 4.Amount of active members'accumulated contributions 5.Actuarial present value of future salaries and future benefits at entry age 6.Actuarial present value of future employee contributions at entry age Preliminary Valuation 10/01/2015 Addition of Tier Two 10/01/2015 Addition of Tier Two &AMSC 10/01/2015 1,186,965 $25,649,528 $30,509,379 783,088 $1,216,965 $1,557,153 N/A N/A N/A 1,582,115 $1,582,115 $1,582,115 N/A N/A N/A N/A N/A N/A Percent of payappliedto expected 2016-2017 covered payroll ($1,534,040) Percent of expected 2016-2017 coveredpayroll ($1,534,040) Percent of payappliedto expected 2016-2017 coveredpayroll ($3,171,089) Percent of expected 2016-2017 coveredpayroll ($3,171,089) Percent of payappliedtoexpected 2016-2017 covered payroll ($4,105,251) Percent of expected 2016-2017 coveredpayroll ($4,105,251) -4- Gabriel Roeder Smith 6c Company South Miami Pension Plan Actuarial Impact Statement as of October 1,2015 Unfunded Actuarial Accrued Liabilities 10/01/2015 Combined Bases * 10/01/2015 Plan Amendment -General Employees Tier Two 10/01/2015 Plan Amendment -AMSC TOTAL $(951,517) *CombinedperInternalRevenueCode Regulation 1.412(b)-! Current Unfunded Liabilities Amortization Payment Remaining Funding Period (952,058)(88,215)19 years 0 541 0 45 25 years 25 years $(88,170) This actuarial valuation and/orcost determination was prepared and completed bymeor under my direct supervision,andI acknowledge responsibility forthe results.Tothebestofmy knowledge,theresultsare complete andaccurate,andinmyopinion,the techniques and assumptions usedarereasonableandmeetthe requirements andintentofPart VII,Chapter 112,Florida Statutes.Baseduponour understanding oftheplan, thereisnobenefitorexpensetobeprovidedbytheplanand/orpaidfromtheplan'sassetsforwhichliabilitiesor currentcostshavenotbeenestablishedorotherwiseprovidedforinthevaluation.Allknowneventsortrends whichmayrequirematerialincreaseinplancostsorrequiredcontributionrateshavebeentakenintoaccountin Enrollment Number:14-02802 Dated:September 14,2016 -5- Gabriel Roeder Smith 6c Company Lawrence F.Wilson,A.S.A. South Miami Pension Plan Outline of Principal Provisions of the Retirement Plan A.Effective Date: October1,1965.Mostrecently amended by Ordinance 06-14-2184 adoptedApril 15,2014. B.Eligibility Requirements: 1.General Employees Anyregular full-time employee hiredbeforeOctober1.2011 iseligibletoentertheplan following the completionofsixmonthsofCreditedServiceandattainmentofage20. Anyregularfull-timeemployeehiredonorafterOctober 1,2011 andnotparticipatinginthePlanas of October 1,2016 whoelectstojoinorfailstomakeanyelectionwithinninety(90)daysfrom effectivedate of OrdinanceiseligibletoenterthePlanasaTier2employeeasoftheeffectivedateof Ordinance. Any regular full-time employee hiredonorafter October 1,2016 whoelectsto join orfailstomake any election within ninety (90)daysfromdate of hireis eligible to enter the Plan asa Tier 2 employee as of their date of hire. 2.Police Officers Anyregularfull-timePoliceOfficeriseligibletoentertheplanas of date of employment. 3.Administration Management Service Class (AMSC) Employees oftheCitywiththe following positionswhodonotelecttoparticipateinadefined contribution plan of theCity: City Manager City Attorney City Clerk Assistant /Deputy City Manager Finance Director /Chief Financial Officer Chief of Police Planning and Zoning Director Building Director Director of Public Works ChiefAdministrativeOfficer (currently FinanceOfficeManager) Chief Procurement Officer(currentlyPurchasingManager) Parks and Recreation Director -6- Gabriel Roeder Smith 8c Company South Miami Pension Plan Outline of Principal Provisions of the Retirement Plan C.Credited Service: 1.General Employees Continuous employment.Credited service shall exclude continuous employment prior toplan participation as follows:(1)If employed priorto October 1,1973,credited service shall exclude the first two years of continuous employment andany additional year of continuous employment priorto attainment of age 25.(2) If employed onorafter October 1,1973,credited service shall exclude thefirstsix(6)months of continuous employmentandcontinuousemploymentpriortoage20. Credited serviceforTier2 employees andAMSCwillbe continuous employment fromthedateofhireforall purposes except for benefit accruals which will befromthe later of October 1,2016 or date of hire. 2.Police Officers Continuousemployment.ForPoliceOfficerswhodidnotparticipatewhenfirsteligiblefortheplan,credited serviceshallexcludecontinuousemploymentpriortoplanparticipationasfollows:(1)Ifemployedpriorto October1,1973,credited service shallexcludethefirsttwoyears of continuousemploymentandany additionalyear of continuous employment priortoattainment of age25.(2)IfemployedonorafterOctober 1,1973,credited service shall exclude thefirstsix(6)months of continuous employment and continuous employment prior toage20. D.Final Monthly Compensation (FMC): FinalAverageCompensationis l/36th ofthefinal36consecutivemonthsofcompensation.ForPoliceOfficers, notlessthan l/5th of thehighestfive(5)yearsoutofthelast (10)tenyears of compensation.Compensationshall meanregularwagesandsalaries,excludingbonuses,vacation,sickleaveandotheradditionalcompensation. EffectiveOctober1,2011,FinalAverageCompensationforGeneralEmployeesis l/60th ofthefinal60 consecutive monthsofbasic compensation,provideditisnotlessthantheFinalAverageCompensationasof September 30,2011 basedonthe definition above.Basic compensation shallmeanbasewagesand salaries, excluding commissions,overtimepay,bonusesandanyother forms of additional compensation earnedoutsideof base wages. EffectiveOctober1,2011,FinalAverage Compensation formemberscoveredunderthePoliceOfficersand Sergeants collectivebargainingagreementisthebestfive(5)yearsofbasic compensation,provideditisnotless thantheFinalAverage Compensation asof September 30,2011 basedonthedefinition above.Basic compensation shallmeanbasewagesand salaries,including upto300hoursofovertimeina fiscal yearand excluding payments for accrued unusedsickor annual leave,extradutyorspecialdetailwork,shift differential, assignmentpay,bonusesandanyotherformsofadditionalcompensationearnedoutsideofbasewages. FinalAverage Compenation forTier2 General Employees andAMSCshallbetheaverageofthehighesteight(8) years of credit service. -7- Gabriel Roeder Smith 6c Company South Miami Pension Plan Outline of Principal Provisions of the Retirement Plan E.Normal Retirement: 1.Eligibility: a.General Employees: b.Police Officers: c.AMSC: 2.Benefit: Attainmentofage55and completion often (10)yearsofcreditedservicefor benefits accrued as of September 30,2011. Attainment ofage60and completion often (10)yearsof credited service for benefits accrued after September 30,2011,including increases inthe accrued benefitasofSeptember30,2011 duetoincreasesintheFinalAverage Compensation. Attainmentofage65andcompletion often (10)years of creditedserviceor completionofthirty-three(33)yearsofcreditedserviceregardlessofagefor Tier 2 employees. Attainment of age60and completion often (10)years of creditedserviceor completionoftwenty-five(25)years of creditedserviceregardless of age. Attainment of age65andcompletion of three(3)years of creditedserviceor completion of thirty-three(33)years of creditedserviceregardless of age. The monthly plan benefit isthe product of: a.FMC, b.Creditedserviceduringthe appropriate periodand c.The appropriate benefit percentage The appropriate benefit percentages are: a.GeneralEmployees For Credited Service b.Police Officers c.General Employees (Tier 2) d.AMSC Through September 30,1999 October 1,1999 through September 30,2011 October 1,2011 and thereafter For Credited Service Through September 30,1995 October 1,1995through September 30,1996 October 1,1996through September 30,1997 October 1,1997through September 30,2001 October 1,2001through September 30,2002 October1,2002throughSeptember30,2003 October 1,2003 and thereafter For Credited Service October 1,2016 and thereafter For Credited Service October 1,2016 and thereafter -8- Gabriel Roeder Smith 6c Company Percentage 2.50% 2.75% 2.25% Percentage 2.00% 2.25% 2.50% 2.75% 2.80% 2.90% 3.00% Percentage 1.60% Percentage 3.00% Outline of Principal Provisions of the Retirement Plan F.Supplemental Benefit: A cost-of-living supplemental benefit based upon the consumer price index is provided upon retirement.The annual increase is limited to 3%. For General Employees the cost-of-living supplemental benefit is only provided onthe accrued benefit asof September 30,2011 anddoesnot apply to increases inthis accrued benefitdueto increases inthe FinalAverage Compensation. No cost-of-living supplemental benefit is provided forTier2 General Employees. No cost-of-living supplemental benefitis provided forAMSC Employees forbenefit accruals onor after October 1,2011. G.Early Retirement: 1.Eligibility: a.PoliceOfficers:Attainmentofage50andcompletion of 15years of creditedservice. b.AMSC:Attainmentofage55andcompletion of 10yearsofcreditedservice. 2.Benefit: a.PoliceOfficers:AccruedbenefitbaseduponFMCandcreditedserviceas of earlyretirement date,reduced3%foreachyearthatthebenefit commencement dateprecedes Normal Retirement. b.AMSC: H.Delayed Retirement: 1.Eligibility: 2.Benefit: I.Disability Retirement: 1.Eligibility: 2.Benefit: Accrued benefit baseduponFMCand credited service as of early retirement date,reduced 1/15foreach of thefirstfive years and1/30for the next five years that the benefit commencement date precedes Normal Retirement. Retirement subsequent tonormal retirement date. AccruedbenefitbaseduponFMCandcreditedserviceas of delayed retirement date. Totallyandpermanentlydisabledforasixmonthperiodwhileactively employed. AccruedbenefitbaseduponFMCandcreditedserviceas of date of disability, actuarially reduced asforearly retirement forearly commencement. Gabriel Roeder Smith 8c Company South Miami Pension Plan Outline of Principal Provisions of the Retirement Plan J.Pre-Retirement Death Benefit: Thebeneficiaryshallreceivethemember's accumulated employeecontributions. K.Benefit Upon Termination of Service: 1.Benefitpayableatnormalretirementequaltothegreaterof: a.AccruedbenefitbaseduponFMCandcreditedserviceasofdateofterminationtimesthe vesting percentage shown below,or b.Benefitwhichcanbesupportedbytheaccumulatedmembercontributionswithinterestto normal retirement date. No supplemental benefit shallbe payable to vested terminees. 2.Vesting Schedule: All employees except AMSC: AMSC employees: 3.Refund Option: A terminated member mayelecttoreceivearefund of accumulated contributions without interest inlieu of receivinganyotherplanbenefits. -10- Gabriel Roeder Smith &Company South Miami Pension Plan Outline of Principal Provisions of the Retirement Plan L.Member Contributions: Members contribute 7.0%(3.0%forTier2 General Employees and 7.5%for Police Officers)of member'sbasicannual compensation. Should theCity contribution for General Employees be actuarially determined to exceed 7.0%, not including expenses,boththeCityandthe General Employees (other thanTier2and AMSC participants)willshare equally inthe amount in excess of 7.0%.The employee contribution is capped at 10%as of October 1,2016. ShouldtheCitycontributionforPoliceOfficersbeactuariallydeterminedtoexceed 7.5%,not includingexpenses,boththeCityandthePoliceOfficerswillshareequallyintheamountin excess of 7.5%. M.Normal Form of Retirement Income: Thenormalform of paymentshallbealifeannuitywithaguarantee of arefund of accumulated employee contributions. N.Changes Since Previous Valuation: Eligibility Requirements were: 1.General Employees Anyregularfull-timeemployeehiredbeforeOctober1,2011 iseligibletoentertheplanfollowingthe completion of six months of Credited Serviceand attainment of age20. 2.Police Officers Any regular full-time Police Officeriseligibletoentertheplanas of date of employment. Credited Service was: 1.General Employees Continuousemployment.Creditedserviceshallexcludecontinuousemploymentpriortoplan participationas follows:(1)If employed priortoOctober1,1973,creditedserviceshallexcludethe firsttwoyearsofcontinuous employment andany additional yearofcontinuous employment priorto attainment ofage25.(2)If employed onorafterOctober1,1973,credited serviceshall exclude the firstsix(6)monthsofcontinuousemploymentandcontinuousemploymentpriortoage20. -11- Gabriel Roeder Smith 8c Company South Miami Pension Plan Outline of Principal Provisions of the Retirement Plan N.Changes Since Previous Valuation (cont'd): 2.Police Officers Continuous employment.For Police Officers who did not participate when first eligible for the plan, credited service shall exclude continuous employment priortoplan participation as follows:(1)If employed prior to October 1,1973,credited service shall exclude the first two years of continuous employment andany additional year of continuous employment prior to attainment of age 25.(2)If employed onor after October 1,1973,credited service shall exclude the first six(6)months of continuous employmentand continuous employmentpriortoage20. Final Monthly Compensation (FMC)was: FinalAverageCompensationisl/36thofthe final 36 consecutive monthsof compensation.ForPolice Officers,notlessthan l/5th of thehighestfive(5)yearsout of thelast (10)tenyearsofcompensation. Compensation shallmeanregularwagesandsalaries,excludingbonuses,vacation,sickleaveandother additional compensation. EffectiveOctober1,2011,FinalAverageCompensationforGeneralEmployeesis l/60th ofthefinal60 consecutivemonths of basiccompensation,provideditisnotlessthantheFinalAverageCompensationasof September30,2011 basedonthedefinitionabove.Basiccompensationshallmeanbasewagesandsalaries, excluding commissions,overtimepay,bonusesandanyotherforms of additional compensation earnedoutside of base wages. Effective October 1,2011,FinalAverage Compensation for members covered underthePoliceOfficersand Sergeants collective bargaining agreement isthebestfive(5)years of basic compensation,provided itisnot lessthantheFinal Average Compensation as of September30,2011 basedonthe definition above.Basic compensation shallmeanbasewagesandsalaries,includingupto300hours of overtime inafiscalyearand excludingpaymentsforaccruedunusedsickorannualleave,extradutyorspecialdetailwork,shift differential,assignmentpay,bonusesandanyotherforms of additional compensation earnedoutsideofbase Normal Retirement was: 1.Eligibility: a.GeneralEmployees:Attainmentofage55andcompletion often (10)years of creditedservice forbenefitsaccruedas of September 30,2011. Attainment of age60and completion often (10)years of creditedservice forbenefitsaccruedafterSeptember30,2011,includingincreasesinthe accrued benefit as of September 30,2011 dueto increases intheFinal Average Compensation. b.PoliceOfficers:Attainmentofage60andcompletion often (10)years of creditedserviceor completion of twenty-five (25)years of credited service regardless of age. -12- Gabriel Roeder Smith &:Company South Miami Pension Plan Outline of Principal Provisions of the Retirement Plan N.Changes Since Previous Valuation (cont'd): Normal Retirement was (cont'd): 2.Benefit: Themonthlyplanbenefitistheproductof: a.FMC, b.Creditedserviceduringtheappropriateperiodand c.Theappropriatebenefitpercentage Theappropriatebenefitpercentagesare: a.General Employees For Credited Service Percentage b.Police Officers Through September 30,1999 2.50% October 1,1999 through September 30,20 2.75% October 1,2011 and thereafter 2.25% For Credited Service Percentage Through September 30,1995 2.00% October 1,1995 through September 30,1996 2.25% October 1,1996 through September 30,1997 2.50% October 1,1997 through September 30,2001 2.75% October 1,2001through September 30,2002 2.80% October 1,2002through September 30,2003 2.90% October 1,2003 and thereafter 3.00% Benefit Upon Termination of Service was: 1.Benefitpayableatnormalretirementequaltothegreaterof: a.AccruedbenefitbaseduponFMCandcreditedserviceasofdateofterminationtimesthevesting percentage shown below,or b.Benefitwhichcanbesupportedbytheaccumulatedmembercontributionswithinteresttonormal retirement date. No supplemental benefit shallbepayabletovestedterminees. 2.Vesting Schedule: •%fe,-o^ -13- Gabriel Roeder Smith fcc Company South Miami Pension Plan Outline of Principal Provisions of the Retirement Plan N.Changes Since Previous Valuation f cont'd): 3.Refund Option: A terminated member may elect to receive a refund of accumulated contributions without interest in lieu of receiving anyotherplanbenefits. Member Contributions were: Members contribute 7.0%(7.5%for Police Officers)of member's basic annual compensation.Should the City contribution for General Employees be actuarially determined to exceed 7.0%,not including expenses, boththeCityandthe General Employees will share equally inthe amount in excess of 7.0%.Tier2 employees contribute 3.0%and AMSC employees contribute 7.0%. Members contribute7.0%(7.5%forPolice Officers)of member's basicannual compensation.Shouldthe CitycontributionforGeneralEmployeesbeactuariallydeterminedtoexceed7.0%,notincludingexpenses, boththeCityandtheGeneralEmployeeswillshareequallyintheamountinexcess of 7.0%.Tier2employees contribute 3.0%and AMSC employees contribute 7.0%. ShouldtheCitycontributionforPoliceOfficersbeactuariallydeterminedtoexceed7.5%,notincluding expenses,boththeCityandthePoliceOfficerswillshareequallyintheamountinexcess of 7.5%. Supplemental Benefit was: A cost-of-living supplemental benefit baseduponthe consumer price index is provided upon retirement.The annual increase is limitedto 3%. ForGeneral Employees the cost-of-living supplemental benefitisonly provided ontheaccruedbenefitasof September30,2011 anddoesnotapplytoincreasesinthisaccrued benefit duetoincreasesintheFinal Average Compensation. Early Retirement was: 1.Eligibility:Attainment of age50andcompletionof 15 years of creditedserviceforPoliceOfficers. 2.Benefit:AccruedbenefitbaseduponFMCandcreditedserviceas of earlyretirementdate,reduced 3%forPoliceOfficersforeachyearthatthebenefitcommencementdateprecedesNormal Retirement. -14- Gabriel Roeder Smith &Company A.Mortality South Miami Pension Plan Actuarial Assumptions and Methods Used in the Valuation For healthy General Employee participants,the RP 2000 Mortality Table was used with separate rates for males and females andfor annuitants and non-annuitants,and fully generational mortality improvements projected toeachfuturedecrementdatewithScaleAA. ForhealthyPoliceOfficer participants,theRP2000 Combined MortalityTablewithBlueCollar Adjustmentwasusedwith separate ratesformalesand females andfully generational mortality improvements projected toeachfuturedecrementdatewithScaleAA. Fordisabled participants,theRP2000 Disabled Mortality Tablewasusedwith separate ratesfor malesandfemalesandfully generational mortality improvements projectedtoeachfuture decrement date with Scale AA. B.Investment Return to be Earned by Fund 7.375%,compounded annually,net of investmentexpenses. C.Allowances for Expenses or Contingencies Actual expenses paid in previous year. D.Employee Withdrawal Rates Withdrawal rates for males andfor females were usedin accordance with the following illustrative example based upon number of years of service: ^^^M^^i^^^:i^^k^M^!M^^^^i E.Disability Rates 1985 Disability Study,Class1withseparateratesforfemaleswasused. -15- Gabriel Roeder Smith 6c Company South Miami Pension Plan Actuarial Assumptions and Methods Used in the Valuation F.Marital Assumptions 100%of activemembersareassumedtobemarried.Whereapplicable,femalesareassumedtobethree years younger than their male spouses. G.Salary Increase Factors Currentsalaryisassumedtoincreasein accordance withthefollowingtablebaseduponnumberofyearsof service. H.Increase in Covered Payroll 4.0%peryear,limited to average annual increase over most recent ten years (2.7%)but not less than 0.0% forPoliceOfficers.No increase incoveredpayrollisassumedforGeneral Employees firstyear. I.Retirement Rates Rates of earlyretirementforPoliceOfficerswereusedinaccordancewiththefollowingtable. Rates of normalretirementwereusedinaccordancewiththefollowingtables. General Employees whoretirepriortoagesixty(60)butafter attainment often (10)yearsof service (55 & 10)are assumed toreceivean actuarially reduced benefit payable immediately upon retirement. -16- Gabriel Roeder Smith &c Company South Miami Pension Plan Actuarial Assumptions and Methods Used in the Valuation J.Cost of Living Increases Future costofliving increases are assumed tobe 3.0%per annum. K.ParticpationRate 2/3 of non-participating General Employees and all AMSC will elect to participate inthis Plan L.Valuation of Assets Themethodusedfordeterminingthe actuarial valueofassetsphasesinthedeviationbetween theexpectedandactualreturnonassetsattherateof20%peryear.Theactuarialvalueof assetswillbefurtheradjustedtotheextentnecessarytofallwithinthecorridorwhoselower limitis80%of thefairmarketvalueofplanassetsandwhoseupperlimitis120%of thefair market value of plan assets. M.Cost Methods Normal Retirement,Termination,Disability and Pre-Retirement Death Benefit: Entry-Age-Actuarial Cost Method Under this method thenormalcostforeachactiveemployeeisthe amount which is calculated tobealevel percentage of pay that wouldbe required annually fromhisdate of hiretohis retirement agetofundhis estimated benefits,assuming the Plan hadalwaysbeenin effect.The normal costforthePlanisthesum of the individual normalcostsforallactive participants. The actuarial accrued liability as of any valuation dateforeachactive employee or inactive employeewhoiseligibletoreceivebenefitsundertheplanistheexcess of theactuarialpresent value of estimated futurebenefitsovertheactuarial present value of current andfuturenormal costs.The unfunded actuarialaccruedliabilityas of any valuation dateistheexcess of the actuarial accrued liability over the actuarial value of assets of the Plan. N.Changes Since Previous Valuation None. -17- Gabriel Roeder Smith 6c Company RESOLUTION NO.146-01-11294 ARESOLUTIONOF THE MAYORANDCITYCOMMISSIONOF THE CITYOF SOUTH MIAMI,FLORIDA,RELATING TO PENSION ACTUARIAL CONSULTING SERVICES,AUTHORIZING THE CITY MANAGER TO SIGN A THREE-YEAR CONTRACT WITH GABRIEL,ROEDER,SMITH &COMPANY(GRS),WITHTHE OPTION FOR RENEWAL FOR ADDITIONAL YEARS. WHEREAS,theCityof South Miami employee Pension Fund currently utilizes WATSONWYATTastheactuarialconsulting firm;and WHEREAS,WatsonWyatt (actuaries)has advised theCitythat effective August31, 2001,itreachedanalliancewithGabriel,Roeder&Company(GRS);and WHEREAS,theCitysoughtto conduct aformalsearchforactuarialservicesfrom differentcompaniesandreceivedproposalsfromfour of them;and WHEREAS,thepensionboard reviewed theproposalssubmittedand interviewed representatives ofthefourcompaniesthat responded;and WHEREAS,thepensionboardhasrecommendedthattheservice contract beawardedto Gabriel,Roeder&Company,andthepensionattorneyconcurredthatthecompanyispremierin theindustry. NOW THEREFORE BEIT RESOLVED BY THE MAYOR AND CITY COMMISSIONOFSOUTHMIAMI,FLORIDA,THAT: Section 1 Effective immediately,Gabriel,Roeder &Company (GRS)will serve asthe actuarial consulting firm in accordance withthe terms and conditions oftheCity pension plan. Section 2 The City Manager is authorized to sign a three-year contract with the option for renewals for additional yearswiththe company for pension actuarial services. Section 3 This resolution shall take effect immediately upon approval. PASSED AND ADOPTED this 2nd day of October 2001. ATTEST: COMMISSION VOTE:4-0 j$K~Mayor Robaina:Yea CITY CLERK v Vice Mayor Feliu:Yea Commissioner Bethel:Yea READ AND APPROVED AS TO FORM:Commissioner Wiscombe:not preser. ,--r->Commissioner Russell:Yea CITY ATTORNEY * aSSEr""I NEIGHBORSI |=» CITY OF SOUTH MIAMI COURTESY NOTICE NOTICE TSHEREBY given thaitheCiryCommission of IheCityof South Miami.Florida vvill conduct Public Hearings atits regular CityCommission meetingscheduled for Tuesday.September 20,2016,beginningat7:00p.m.,intheCity Commission Chambers,6130SunsetDrive*toconsiderthe following item(s): AResolutionapprovingaspecialusetopermitafraternalorganization/privateclubat6304 SW 78Street. AResolutionrelatingtoan application forwaiverofplatforthe subdivision ofpropertylocated6050SW 81 Street, AnOrdinance amending theCiryofSouthMiami'sLandDevelopmentCode,Article UL "Zoning Regulations."Section 20-3.3.Permitteduseschedule."Subsection(E), "OutdoorSeating/DiningforAHcommercialProperties.,exceptfor Properties intheRO Residential Office Zoning District."toamendthe insurance requirements,andother applicable rules,applicabletooutdoorseatingof restaurants withintheCity. An Ordinance amending theSouth MiamiPension Planto implement the Collective Bargaining Agreement between theCityof South.Miami andAFSCME Local3294and creatinganew Administration ManagementServiceClass (AMSC)of employees intheSouthMiamiPensionPlanfortheCityofSouthMiamiandsettingforth the termsof thePlanasrelatedtothe AMSC:by Amending Chapter 16,Article II,Section 16-12.'"Definitions"by Adding Definitions for Second Tier Member andAMSCand amending the definition of final average compensation,asitappliestothe AMSC;by amending Section 16-13."Eligibility"to reopen thePlanfor certain General Employees andfor theAMSC;byamendingSection 16-14,'Tension benefitsandretirementdate"tosetoutthe benefits forthosepersonswhowilljointheSecondTierandforthosepersons inthe AMSC:by amending Section16-17'TerminationBenefits"to provide a vesting schedule forthe AMSC;by amending Sec.16-19."Contributions'"toplacealimit onthetotal contributions madeinany fiscal yearbyGeneralEmployees andtosetthe contribution rateforthe AMSC;by amending Section 16-2L "Purchaseof Credited Service'"byallowingcertain employees andelectedofficerstobuycredited service. An Ordinance ofthe Mayor andCity Commission oftheCityof South Miami amending the Land Development Code.Article III."Zoning Regulations."Section 20-3.5. "Dimensional Requirements."toamendand clarify the setback requirements forsidestreet first and second story facades of structures oncornerlots,andforside interior setbacksforadditionsto structures withalivefoot setback,inthe RS-1.RS-2.RS-3.RS-4 and RS-5 zoning districts:andSection20-3.6."Supplemental Regulations/* subsection(F)(4).tocorrectthetitleofthedirectorresponsiblefordeterminingwhichstreetsarefrontageandsidestreets. .An Ordinance amending Section 20-6.1 oftheCityofSouthMiami's Land Development Code,to amend the meeting requirements forthe Environmental Review and Preservation Board. An Ordinance Adopting a Small Scale Amendment to the Future Land Use Map ofthe Comprehensive Plan,amending the designation ofthe Marshall Williamson property located south of SW 64*Terrance,approximately between SW 60*Avenue and SW 61"Court,from Single-Family Residential (Two-Story)toTownhouseResidential(Two-Story). AnOrdinance Amending the Official Zoning Map,asauthorized bySection 20-3.1(C).and other applicable provisions,amending thedesignation oftheMarshall Williamson property located south of SW 64,h Terrace approximately between SW60*Avenue and SW 61>1 Court,from Single-Family Residential District RS-4 to RT-9. ALL interestedpartiesareinvitedtoattendandwillbeheard. Forfurtherinformation,pleasecontacttheCityClerk'sOfficeat:305-663-6340. Maria M.Menendez.CMC CiryClerk Pursuant loFlorida Slatulcs 2S6.0J05.the Cily hereby advises thepublic thatiJ a person decides loappeal any decision made by this Board,Agency or Coinmission with respect lo any mailer considered at lis meeting or hearing,heorshe will need a record of ibe procecding.s-,and thai for such purpose.affected person may need lo ensure thai a verbatim record of the proceedings;is made which record includes ihe testimony andevidenceuponwhich ihe appealistobebased. MIAMI DAILY BUSINESS REVIEW Published DailyexceplSaturday.Sundayand legnf Holidays Miami,Miami-DadeCounty.Florida STATE OF FLORIDA COUNTYOFMIAMI-DADE: Before the undersigned authority personally appeared OCTELMA V.FERBEYRE.whoon oalh saysthatheorsheis .the VICE PRESIDENT.Legal Notices ofthe Miami Oaify' Business Review f/k/a Miami Review,a daHy (except Saturday".Sundayand Legal Holidays)newspaper, published at Miami in Miami-Dade County.Florida.Ihat Ihe attached copy of advertisemeni.being a Legal Advertisement of Notice in Ihe mailer ol NOTICE Of PUBLICHEARING CITYOFSOUTH MIAMI -SEPT 20.2016 in Ihe XXXX Court. waspublishedinsaidnewspaperin Ihe issuesof Affiant further says thai Ihe said Miami Daily Business Reviewisanewspaperpublishedat Miami,insaid Miami-Oade County.Florida andthatthesaidnewspaperhas heretoforebeencontinuouslypublishedinsaidMiami-Dade County.Florida eachday(exceplSaturday,Sundayand LegalHolidays)andhasbeen entered as second class mail malter ai thepostofficein Miami in said Miami-Dade County. Florida,fora period ofoneyearnext preceding the first publication oftheattachedcopyofadvertisement;andaffiant further saysthatheorshehas neither paidnor promised any person,firmorcorporationany discount,rebate,commission or refundfor the^nurpose ofsecuringthisadvertisementfor publicatron in |he/$aid nev^spa'per* (seal;//o^'^'%%OCTELMA V.FERBEYRE personally kncjh loJto^^*<£%\% 3T .J *tfl»4.2 %^\BFF 034747 /<=?5 ^>*V..•<£»'5- CITY OF SOUTH MAM NOTICE OF PUBMC HEARBNG NOTICE IS HEREBY given that theCityCommissionoftheCityofSouth Miami,FloridawillconductPublic Hearing(s)atitsregular City Commission meeting scheduled forTuesday.September 20.2016,beginningat7:00 p.m.,In theCity Commission Chambers,6'130 Sunset Drive,toconsider thefollowing item(s): AResolution approving aspecialuseto permit a fraternal organization/private dub at 6304 SW 78 Street. ,•-•A .Resolution relating .to an application forwaiverofplatforthe '"subdlyisiori of.pn^rtyJqcaWeO^O SW 81 Street..• -i •^Qrdinance^arheprJpig.ttielCityof South Mfamrs.Land Development .'Code,Article III,"'Zoning.Regulations',."Section-20-3.3,Permitted use schedule,"Subsection (E)."Outdoor SeatingnDining forAll commercial Properties,exceptforProperties in theROResidentialOfficeZoning District."to amend Ihe insurancerequirements,andotherapplicable rules,applicabletooutdoorseatingofrestaurantswithintheCity. AnOrdinanceamendingtheSouthMiamiPensionPlantoimplement theCollectiveBargainingAgreementbetweentheCityofSouthMiami and AFSCME Local 3294 and creating anew Administration ManagementServiceClass (AMSC)ofemployeesintheSouthMiami PensionPlanfortheCityofSouthMiamiandsettingforththeterms ol thePlan as related totheAMSC;byAmending Chapter 16.ArticleII, Section16-12."Definitions"byAddingDefinitionsfor Second Tier MemberandAMSCand amending thedefinitionoffinal average compensation,asItappliestothe AMSC:byamendingSection 16-13. ""Eligibility"toreopenthePlanforcertain General Employees andfor the AMSC;by.amending Section 16-14,"Pension benefitsand retirement date"tosetputthebenefitsforthosepersonswhowilljoin the Second Tier andfor those persons inthe AMSC;-byamending Section16-17"Termination Benefits'*to provide a vesting schedulefor the AMSC;by amending Sec,16-19,"Contributions"to place a limit onthe total'contributionsmadeinanyfiscalyearbyGeneral. Employees andto sel the contribution rate for the AMSC;by amending Section 16-21.'Purchase ofCredited Service"by allowing certainemployeesandelectedofficers tobuycreditedservice. AnOrdinanceofthe Mayor and CityCommission oftheCityofSouth Miami amending the Land Development Code,Article.Ill,"Zoning Regulations,"Section 20-3.5,"Dimensional Requirements,"to amend and clarify the setback requirements forsidestreetfirstand second story facades ol structures on comer lots,andforside interior setbacksforadditionstostructureswithafivefootsetback,inthe RS-1, RS-2.RS-3,RS-4andRS-5 zoning districts;andSection 20-3.6,- "Supplemental Regulations,"subsection (F)(4),tocorrectthe title of thedirector responsible fordetermining which streetsere frontage and side streets.. An Ordinance amending Section 20-6.1 ofthe City ofSouth Miami's Land Development Code,toamendthe meeting requirements for the Environmental Reviewand Preservation Board. AnOrdinance Adopting aSmallScale Amendment totheFuture Land UseMapofthe Comprehensive Plan,amending the designation ofthe Marshall Williamson propertylocatedsouthofSW64th ;Terrance. approximately betweenSW60th Avenue andSW61st Court,from Single-Family Residential (Two-Story)toTownhouse Residential (Two-Story). AnOrdinance Amending the Official Zoning Map.as authorized by Section 20-3.1(C),andother applicable provisions,amending the designation ofthe Marshall Williamson property located south ot SW 64th Terrace approximately betweenSW60th Avenue andSW61st Court,from Single-Family Residential District RS-4 to RT-9. ALL interested parties are invited toattendandwill behoard. Forfurther information,pleasecontacttheCityClerk's Office at 305-663-6340. MariaM.Menendsz,CMC City Clerk Pursuant to Florida Statutes 286.0105,the City hereby advisesthe public that If a person decides to appeal any decision made by this Board. Agency or Commission with respect to any matter considered atits meeting or hearing,he or-she will need a record ofthe proceedings,and thatforsuch purpose,affected person may needto ensure thata verbatim record ofthe proceedings rsmade which record includes the testimony andevidenceuponwhich theappealistobe based, g/g.16-101/0000151096M