17CITY OF SOUTH MIAMI
OFFICE OF THE CITY MANAGER
INTER-OFFICE MEMORANDUM
THE CITY OF PLEASANT LIVING
To: The Honorable Mayor & Members of the City Commission
From:
Date:
Steven Alexander, City Manager
Agenda Item: n August 16, 2016
Request: An Ordinance amending the South Miami Pension Plan to Implement the Collective Bargaining Agreement
Between the City of South Miami and AFSCME Local 3294 and creating a new Administration Management
Service Class (AMSq of employees in the South Miami Pension Plan and creating a new Elected Officers Class
(EOq for the City of South Miami and setting forth the terms of the Plan as related to the AMSC and EOC; by
Amending Section 16-12, "Definitions" by Adding Definitions for Second Tier Member, AMSC, EOC and
amending the definition of final average compensation, as it applies to the AMSC and EOC; by amending
Section 16-13, "Eligibility" to reopen the Plan for certain General Employees and for the AMSC and EOC; by
amending Section 16-14, "Pension benefits and retirement date" to set out the benefits for those persons
who will join the Second Tier and for those persons in the AMSC and EOC; by amending Section 16-17
"Termination Benefits" to provide a vesting schedule for the AMSC and EOC; by amending Sec. 16-19,
"Contributions" to place a limit on the total contributions made in any fiscal year by General Employees and
to set the contribution rate for the AMSC and EOC ; by amending Section 16-21, "Purchase of Credited
Service" by allowing certain employees and elected officers to buy credited service; Providing Rules of
Construction; Providing for Severability; Providing for Inclusion in the Code; Providing for a Repealer; and
Providing for an Effective Date.
EXECUTIVE SUMMARY
The attached ordinance remains in line with the items presented within the Retirement Plan
Presentation held on Tuesday, May 3, 2016 by Finance Director Alfredo Riverol and Bradley
Cassel, Pension Board Chair. As detailed in the presentation, the Ordinances are structured to
meet the City's objectives of:
Retaining our City employees, the City's greatest assets. -Retention is the key to
corporate stability and resident satisfaction.
Hiring the best talent -The City is struggling to regain a level of respect and desirability
as an employer and to compete for the best employee talent, benefits can make the
difference between securing the recruitment.
Keeping & managing employee turnover -Employee turnover can be costly. Various
sources estimate it can cost anywhere from 30% to 200% of an employee's annual salary
to replace them.
FINANCIAL IMPACT TO CITY
The City conducted a pension projection study providing the City with an idea related to the
cost of adopting the changes reflected in the Ordinance. Based on the April 29, 2016,
projection study, an estimated savings of $47,000 and $3.6 million savings over 30-years,
accrues to the benefit of the City. Upon approval on first reading, the City is required to
complete an actuarial impact study which provides the Mayor and Commission with the official
cost or savings related to the adoption of the Ordinance before second reading.
Page 10f4
BACKGROUND
On July 12, 2016 the Mayor and Commission adopted Resolution 136-16-14691 which approved
the Collective Bargaining Agreement (CBA) for Fiscal Years beginning June 22, 2016 through
June 21, 2019 between the American Federation of State, County and Municipal Employees
("AFSCME"), Local 3294 and the City of South Miami, and authorized the City Manager to
execute the agreement. The proposed Ordinance incorporates the changes necessary to
conform to the approved CBA, specifically Article 37, Retirement Benefits.
The development of the proposed Ordinances and reaching a final agreement with the AFSCME
members was a very long and tiresome process. Many hours of research, conference calls, and
meetings were conducted to finally provide the items reflected in this packet.
Furthermore, since the City was completing such a significant revision of the City's existing
retirement benefit, it was recommended that we address the outdated existing section of the
City's Code which provides retirement benefits to elected officials. On September 17, 1971, the
Mayor and City Commission adopted an ordinance which provided the elected officers with
voluntary retirement should they hold office for twenty-years or more. In November of 2010,
the City residents voted that "no person may appear on the Ballot for Election as Mayor or City
Commissioner if, by the end of his or her current term of office, the person will have served (or,
but for resignation would have served) in office as the Mayor or as a City Commissioner for a
total of nine years or more." As stated, the new term limit requirements have made Section 2-
4.5 obsolete and nonconforming; hence, the proposed ordinance updates the issue of
retirement benefits for the Mayor and City Commission.
PROPOSED ORDINANCE
As required under the approved CBA, Section 6 of the Retirement Benefits, the proposed
Ordinance provides that all employees who are participating in the ICMA-RC defined
contribution (DC) 457 plan on the date the 2016-2019 Agreement is ratified, and all employees
hired on or after that date, will be given a one-time, irrevocable election (opportunity) to
participate in one of the following retirement plan options:
Option 1: A new second tier of the City General Employees' Pension Plan, which shall
contain the following provisions:
a. Full vesting upon completion often (10) years of credited service.
b. Future service benefit multiplier is 1.60%.
c. Final Average Compensation will be the average of the highest eight (8) years of
compensation.
d. Normal Retirement Date is 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.
e. The employee contribution will be three percent (3%) of compensation.
f. No cost-of-living adjustments will be provided on retirement benefit
Page 2 of 4
Option 2: Defined Contribution plan with the following provisions:
a. Employees are required to contribute 3% of compensation.
b. City will contribute 7% of compensation.
c. Employees will be fully vested after one year of service.
Employees who are participating in the ICMA-RC defined contribution plan on the date the
2016 -2019 Agreement is ratified, and would like to join the new second tier plan, must make
the irrevocable election within 90-days after the adoption of the new pension ordinance
creating the new second tier pension plan (the ordinance recommended in this Memo). The
effective date of the enactment of the ordinance identified above shall be known as the
{(Commencement Date".
The employee contribution for employees who are participating in City General Employees'
Pension Plan on the {(Commencement Date," October 1, 2016, will be capped at 10% of
compensation, which currently provides for no cap percentage.
The existing Defined Contribution Plan will not be offered to any new hires and it will be frozen
for all persons who are presently in the plan and elect to join any of the options of the second
tier pension plan. Therefore, it will ultimately cease to be of use to any employees.
For all AFSCME bargaining unit members who become employed subsequent to the
{(Commencement Date" of closing the Plan, the following will apply: The employees will be
given an opportunity'to buy-back any and all years of service up-to the number of years they
have worked at the City at any time while employed at the City in a position eligible for
participation in the Plan. Employees must pay the full actuarial cost of the service they buy
back and such buy-back will be at the employee's sole expense as calculated by the Retirement
Plan's actuary.
Moreover, as part of the revised plan, the City is including two new classes to the plan; the
Administrative Management Service Class (AMSC) and the Elected Officers Class (EOC). The
AMSC Members will be composed of the persons who hold only the following positions:
-City Manager
-City Attorney
-City Clerk
-Assistant or Deputy City Manager
-Finance and Administration Director, C.F.O.
-Police Chief
-Planning Director
-Building Director
-Public Works Director
-Chief Administrative Officer (currently Finance Office Manager)
-Chief Procurement Officer (currently Purchasing Manager)
-Parks and Recreation Director
The EOC Members shall be composed of the Mayor, Vice Mayor and the three (3) City
Commissioners.
Page 30f4
AMSC and EOC Members shall be fully vested in the pension plan upon completion of three
(3) years of continuous service. Also, the required contribution for both classes of members
will be 7%, with the multiplier for both classes being slightly higher than the general
employees at 3%.
The attached ordinance remains in line with the items presented within the Retirement Plan
Presentation held on Tuesday, May 3, 2016 by Finance Director Alfredo Riverol and Bradley
Cassel, Pension Board Chair. As detailed in the presentation, the Ordinances are structured to
meet the City's objectives of:
-Retaining our City employees, the City's greatest assets. -Retention is the key to
corporate stability and resident satisfaction.
-Hiring the best talent -The City is struggling to regain a level of respect and desirability
as an employer and to compete for the best employee talent, benefits can make the
difference between securing the recruitment.
-Keeping & managing employee turnover -Employee turnover can be costly. Various
sources estimate it can cost anywhere from 30% to 200% of an employee's annual salary
to replace them.
RECOMMENATION
Approve the attached ordinance that enacts changes necessary to bring'the City in compliance
with Resolution 136-16-14691 which approved the Collective Bargaining Agreement ((BA) for
Fiscal Years beginning June 22, 2016 through June 21, 2019 between the American Federation
of State, County and Municipal Employees ("AFSCME"), Local 3294 and the City of South Miami,
and to extend these same benefits to all eligible and applicable employees and Officers.
ATTACHMENTS
-Proposed Ordinances
-Resolution 136-16-14691 Approving the AFSCME 2016 CBA
-City Retirement Plan Presentation (May 3, 2016)
-April 29, 2016 GRS Projection Study
Page 40f4
1 ORDINANCE NO. _____ _
2
3 An Ordinance amending the South Miami Pension Plan to implement the Collective
4 Bargaining Agreement between the City of South Miami and AFSCME Local 3294
5 and creating a new Administration Management Service Class (AMSC) of employees
6 in the South Miami Pension Plan and creating a new Elected Officers Class (EOC)
7 for the City of South Miami and setting forth the terms of the Plan as related to the
8 AMSC and EOC; by Amending Chapter 16, Article II, Section 16-12, "Definitions"
9 by Adding Definitions for Second Tier Member, AMSC, EOC and amending the
10 definition of final average compensation, as it applies to the AMSC and EOe; by
11 amending Section 16-13, "Eligibility" to reopen the Plan for certain General
12 Employees and for the AMSC and EOC; by amending Section 16-14, "Pension
13 benefits and retirement date" to set out the benefits for those persons who will join
14 the Second Tier and for those persons in the AMSC and EOC; by amending Section
15 16-17 "Termination Benefits" to provide a vesting schedule for the AMSC and EOC;
16 by amending Sec. 16-19, "Contributions" to place a limit on the total contributions
17 made in any fiscal year by General Employees and to set the contribution rate for the
18 AMSC and EOC; by amending Section 16-21, "Purchase of Credited Service" by
19 allowing certain employees and elected officers to buy credited service.
20
21 WHEREAS, the City of South Miami and the American Federation of State, County
22 and Municipal Employees, AFL-CIO, City Employees Local 3294 (hereinafter "Union"), have
23 entered into a new Collective Bargaining Agreement ("Agreement"), effective June 22, 2016
24 to June 21,2019; and
25
26 WHEREAS, it is the purpose and intention of the Agreement to provide for salaries,
27 fringe benefits and other terms and conditions of employment except as otherwise provided
28 by Constitution, Statute, Charter, Ordinance, Administrative Order or Personnel Rules and
29 Regulations; and
30
31 WHEREAS, Florida law requires that if any provIsion of a collective bargaining
32 agreement is in conflict with any ordinance over which the chief executive officer has no
33 amendatory power, the chief executive officer shall submit to the appropriate governmental
34 body having amendatory power a proposed amendment to such ordinance; and
35
36 WHEREAS, the City Commission has decided to create a new class of employees,
37 comprised of the Administration Management Service Class ("AMSC") and to permit
38 members of the AMSC to join the South Miami Pension Plan and to provide for the terms of
39 membership;
40
41 WHEREAS, the City Commission has decided to create a new class of employees,
42 comprised of the Elected Officials Class ("EOC") and to permit members of the EOC to join
43 the South Miami Pension Plan and to provide for the terms of membership;
44
45 WHEREAS, the City Commission has received and reviewed an actuarial impact
46 statement related to such amendments; and
1
1
2 WHEREAS, the City Commission wishes to change the terms of the South Miami
3 Pension Plan to effectuate the changes called for in the Agreement; and
4
5 WHEREAS, the City Commission deems it to be in the public interest to provide these
6 changes to the pension plan;
7
8 NOW, THEREFORE, BE IT HEREBY ORDAINED BY THE MAYOR AND CITY.
9 COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA, THAT:
10
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12
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14
15
Section 1: That Chapter 16 Article II, Section 16-12, "Definitions" of the City of South
Miami Code of Ordinances is hereby amended by adding to it the following definitions:
Definitions.
* * *
16 AMSC Member shall mean the Administration Management Service Class. It will be
17 composed of employees who hold only the following positions:
18
19 City Manager
20 City Attorney
21 City Clerk
22 Assistant City Manager
23 Finance and Administration Director, C.F.O.
24 Police Chief
25 Planning Director
26 Building Director
27 Public Works Director
28 Chief Administrative Officer (currently Finance Office Manager)
29 Chief Procurement Officer (currently Purchasing Manager)
30 Parks and Recreation Director
31
32
33
34
35
36
37
38
39
40
41
42
43
* * *
Elected Officers Class (EOC) Member shall mean the members of the City Commission,
including the Mayor, Vice Mayor-and the remaining three (3) City Commissioners.
* * *
Employee shall mean any person employed full-time by the employer on a 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 to eligibility date as defined in section 16-13 of this Code, (in writing) of this
pension plan.
* * *
2
1
2
3
4
5
6
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8
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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.
* * *
Section 2: That Chapter 16 Article II, Section 16-12, "Definitions" of the City of South
Miami Code of Ordinances is hereby amended by amending the definition of average final
compensation as follows:
10 Final average compensation shall mean the participant's annual compensation, as
11 determined by the employer, acting in a uniform and nondiscriminatory manner. For general
12 employees, except for Second Tier Members, AMSC and EOC Members effective October 1,
13 2011, final average compensation shall be averaged over the last five-year period, provided
14 however final average compensation over the last five-year period shall not be less than the
15 final average compensation as of September 30, 2011, under the definition of final average
16 compensation which existed as of September 30, 2011. For Second Tier Members, final
17 average compensation will be the average of the highest eight (8) years of credited service.
18 For AMSC Members, final average compensation will be the average of the highest eight (8)
19 years of credited service. For EOC Members, final average compensation will be the
20 average of the highest eight (8) years of credited service. In the event an AMSC or EOC
21 Member has less than eight (8) years of credited service, final average compensation will be
22 the average of all the participant's annual compensation over the period for which the
23 Member received credited service. For members covered under the police officers and
24 sergeants collective bargaining agreement, final average compensation shall be the best five-
25 year period of the police officer or sergeant's career with the City of South Miami, provided
26 however final average compensation over the best five-year period shall not be less than the
27 final average compensation as of September 30, 2011, under the definition of final average
28 compensation which existed as of September 30, 2011. The best five (5) years is defined as
29 the highest five (5), twenty-six (26) consecutive pay periods within a police officer or
30 sergeant's career and such consecutive year periods shall not overlap one another. For all
31 other members, final average compensation shall be averaged over the last three-year period
32 -but not less than the average of the participant's five (5) best years of annual compensation
33 during the last ten (10) years of service. For all members final average compensation will end
34 on the participant's retirement date, date of disability, date of termination of employment or
35 the date of termination of the plan, whichever is applicable.
36
37 Section 3: That Chapter 16 Article II, Section 16-12, "Definitions" of the City of South
38 Miami Code of Ordinances is hereby amended by amending the definition of credited service
39 as follows:
40
41 Credited service shall mean participant's continuous employment with the employer
42 computed in completed calendar months while a member of the South Miami Pension Plan.
43 For Second Tier Members, AMSC Members and EOC Members who elect to join the South
3
1 Miami Pension Plan as a result of this Ordinance. credited service shall include continuous
2 employment prior to becoming a member of the South Miami Pension Plan for all purposes
3 except for purposes of benefit accrual. Leaves of absence authorized by the employer with
4 periods of absence in connection with military service during which the participant's
5 employment rights were protected by law shall not be considered to have broken the
6 continuity of his employment; provided, that the employee has become re-employed by the
7 employer within time period provided in The Uniform Service Employment and
8 Reemployment Rights Act (USERRA) and for police officers Chapter 185 of the Florida
9 Statutes after honorable discharge from the military service. Further, that the employee has
10 paid an amount equal to the contributions that would have been made during such leave of
11 absence based on the participant's salary immediately prior to entry into military service,
12 provided that police officer participants shall not be required to make such payment of
13 contributions per Chapter 185, F.S. No employee shall be eligible to become a participant
14 during such absence.
15
16 Section 4: That Chapter 16 Article II, Section 16-13, ""Eligibility" of the City of South
17 Miami Code of Ordinances is hereby amended as follows:
18
19 Eligibility.
20
21 (a) Each employee employed by the employer on October 1, 1965, shall be a
22 participant on the first participation date on which he has completed two (2) years of credited
23 service and has attained his twenty-fifth birthday.
24
25 (b) Each employee who becomes an employee subsequent to October 1, 1973,
26 shall be a participant on the first participation date on which he/she has completed six (6)
27 months of credited service and has obtained his/her twentieth birthday. For all current
28 employees as of October 1, 1995, each fiscal year there will be a window for joining the
29 retirement system; i.e. October 1 through October 31.
30
31 (c) It shall become mandatory for all employees hired on or after October 1, 1995,
32 to join the pension plan after completion of six (6) months of employment by the city.
33
34 (d) All general employees who are hired by the City of South Miami on or after
35 October 1, 2011, will not be eligible to participate in the South Miami Pension Plan. All
36 general employees hired on or after October 1, 2011, shall join the ICMA RC ~defined
37 contribution plan of the City of South Miami (DC) 457 Plan.
38
39 (e) Employees who are hired on or after October 1, 2011, and are classified as
40 police officer or sergeant, shall enter the pension plan immediately upon being hired as a
41 sworn law enforcement officer.
42
43 (f) All general employees hired on or before September 30, 2011, will have a one-
44 time option to either remain in the South Miami Pension Plan or elect to discontinue
45 membership.
46
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(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 planlCMA 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.
10 (2) Should a general employee choose to discontinue membership in the South
11 Miami Pension Plan, the general employee will be refunded the contribution
12 which they contributed during their participation in the South Miami Pension
13 Plan and may rollover such amount into the defined contribution planReWly
14 established ICMA RC 457 Plan.
15
16 i9.l Notwithstanding sections (a) through (f) above, general employees who are not
17 participating in the South Miami Pension Plan as of October 1, 2016, and general employees
18 hired on or after October 1, 2016 shall be given a one-time irrevocable election to either
19 become a Second Tier Member of the South Miami Pension Plan or join a defined
20 contribution plan of the City of South Miami. The irrevocable election must be made within
21 ninety (90) days from the later of the effective date of this Ordinance or date of hire. If no
22 election is made, the general employee will be placed in the South Miami Pension Plan.
23
24 (h) All persons who hold positions listed in the AMSC or EOC in the definition
25 section above and who are not participating in the South Miami Pension Plan as of October
26 1, 2016, shall be given a one-time irrevocable election to either join the South Miami Pension
27 Plan or join a defined contribution plan of the City of South Miami. The irrevocable election
28 must be made within ninety (90) days from effective date of this Ordinance. All AMSC
29 Members who are, on the effective date of this Ordinance, participating in the South Miami
30 Pension Plan will have their accrued benefits as of the date of the adoption of this Ordinance
31 reflect their compensation through date of termination for purposes of final average
32 compensation as defined immediately prior to the effective date of this ordinance.
33 All persons who are not AMSC or EOC Members and are not participating in the South
34 Miami Pension Plan as of October 1,2016, but thereafter become a member of the AMSC or
35 EOC in the definition section above, upon becoming a member of the AMSC or EOC shall be
36 given a one-time irrevocable election to join the South Miami Pension Plan or join a defined
37 contribution plan of the City of South Miami. The irrevocable election must be made upon
38 becoming a member of the AMSC or EOC. All those general employees, who, after the
39 effective date of the Ordinance, become AMSC or EOC Members will have their accrued
40 benefits as of the date they become AMSC or EOC Members reflect their compensation
41 through date of termination for purposes of final average compensation as defined
42 immediately prior to the effective date they become AMSC or EOC Members.
43
5
1 (i) Notwithstanding Sections (a) through (h) above, all persons who join the South
2 Miami Pension Plan on or after the effective date of this Ordinance will not be required to
3 have completed six (6) months of service prior to joining and are required to participate
4 immediately upon hire or upon election to join for members who were hired prior to the
5 effective date of this Ordinance.
6 Section 5. That Chapter 16 Article II, Section 16-14, "Pension benefits and retirement
7 date" of the City of South Miami Code of Ordinances is hereby amended as follows:
8
9 (a) Retirement date. The normal retirement date with full unreduced pension benefits for a
10 participant, shall be as follows:
11
12 (1) General employees. Shall be the first day of the calendar month coincident with
13 or, otherwise, next following the later of the participant's sixtieth birthday and the date
14 on which the participant has completed ten (10) years of credited service. General
15 employees participating in the plan as of September 30, 2011, will remain eligible to
16 retire at the age of fifty-five (55) and the completion of ten (10) years of credited
17 service and obtain their accrued benefits earned through September 30, 2011, at such
18 time. Benefit accruals earned on or after October 1, 2011, including increases due to
19 increases in final average compensation, may be paid at the new normal retirement
20 date of attainment of age sixty (60) and completion of ten (10) years of credited
21 service. General employees who were participating in the plan on September 30,
22 2011, may receive their benefits accrued after September 30, 2011 upon retirement on
23 the first day of any month following retirement upon attaining age fifty-five (55) and ten
24 (10) years of credited service reduced one-fifteenth (1/15th) for each year benefit
25 commencement precedes the later of age sixty (60) and ten (10) years of credited
26 service. Or, in the alternative, those general employees who were partiCipating in the
27 plan as of September 30, 2011, may defer commencement of their benefit accrued
28 after September 30, 2011, until attainment of age sixty (60) and ten (10) years of
29 credited service. Under no circumstance will a general employee member who was
30 participating in the plan on September 30, 2011, be allowed to receive their fifty-five
31 (55) and ten (10) distribution and then keep working.
32
33 (2) Second Tier Members. The earlier of (a) age 65 and completion of ten (10)
34 years of credited service; or (b) completion of thirty-three (33) years of credited service.
35
36 (3) AMSC and EOC Class Members. The earlier of (a) age 65 and completion of
37 three (3) years of credited service; or (b) completion of thirty-three (33) years of credited
38 service.
39
40 (A) Early retirement.
41
42 (1) A general employee participant as of September 30, 2011, and AMSC
43 and EOC Participants may elect an early retirement date which may be the first day of
44 any calendar month coincident with, or subsequent to the participant's fifty-fifth (55th)
45 birthday and completion of ten (10) years of credited service. The pension benefits
6
1 payable to any such participant on early retirement date shall be equal to an actuarial
2 equivalent, determined in accordance with the table below, to the amount of pension to
3 which is entitled up to early retirement date in accordance with subsection (b).
4
5 Table-General Employee participant as of September 30,2011, AMSC and EOC
6 Participants Participant Percentages for early retirement date
7
8
9
Years prior to normal retirement date
1
2
3
4
5
§
Z
§
9
10
Percentage
93.33
86.67
80.00
73.33
66.67
63.33
60.00
56.67
53.33
50.00
10 (2) Police officers. Shall be the completion of twenty-five (25) years of credited
11 police service, regardless of age, or attainment of age sixty (60) and completion of ten
12 (10) years of credited police service.
13
14 (3) Vesting of benefits upon normal retirement date. Any provision of this plan to
15 the contrary notwithstanding, a member's accrued benefit shall become one hundred
16 (100) percent vested upon the attainment of the normal retirement date.
17
18 (b) Amount of pension. The yearly amount of pension payable to a participant on the first
19 day of the month coincident with or next following the participant's retirement date shall be an
20 amount equal to the participant's number of completed years of credited service multiplied by
21 a percentage of final average compensation as stated herein.
22
23 (1 ) Basic benefit.
7
1
2 a. A basic benefit for participant's retiring prior to October 1, 1970, shall be
3 determined by multiplying 1.6 percent of the participant's final average compensation
4 by the number of completed years of credited service, excluding the first two (2) years
5 of such service and any additional service completed by the participant prior to the
6 participant's twenty-fifth birthday.
7
8 b. However, as to those participants who became an employee subsequent to
9 October 1, 1973, there shall only be excluded the first six (6) months of such service
10 plus any additional service completed prior to the participant's twentieth birthday
11 and/or additional service completed prior to the participant becoming eligible to join
12 this pension plan.
13
14
15
(2) General employees.
16 a. Effective October 1, 1993, the pension benefit accrual rate (multiplier) for
17 general employee participants, shall be increased from 1.6 percent to 1.8 percent for
18 services performed in the 1993-1994 fiscal year.
19
20 b. Effective October 1, 1994, the pension benefit accrual rate (multiplier) for
21 general employee participants, shall be increased from 1.8 percent to 1.9 percent for
22 services performed in the 1994-1995 fiscal year.
23
24 c. Effective October 1, 1995, the pension benefit accrual rate (multiplier) for
25 general employee participants shall be increased from 1.9 percent to 2.25 percent for
26 services performed in the 1995-1996 fiscal year.
27
28 d. Effective October 1, 1996, the pension benefit accrual rate (multiplier) for
29 general employee participants shall be increased from 2.25 percent to 2.50 percent for
30 services performed in the 1996-1997 fiscal year. Effective October 1, 2001, the
31 pension benefit accrual rate (multiplier) for general employee participants shall be 2.25
32 percent for all services performed through September 30, 1998.
33
34 e. Effective October 1, 1997, the pension benefit accrual rate (multiplier) for
35 general employee participants shall be increased from 2.50 percent to 2.75 percent for
36 services performed in the 1997-1998 fiscal year and thereafter. Effective October 1,
37 2001, the pension benefit accrual rate (multiplier) for general employee participants
38 shall be 2.50 percent for services performed in the 1998-1999 fiscal year and 2.75
39 percent for services performed thereafter.
40
41 f. Effective October 1, 2002, the pension benefit accrual rate (multiplier) for
42 general employee participants shall be 2.50 percent for all services performed through
43 September 30, 1999, and 2.75 percent for services performed thereafter.
44
45 g. For all service earned on or after October 1, 2011, the pension benefit accrual
46 rate (multiplier) for general employee participants shall be reduced from 2.75 percent
47 to 2.25 percent.
8
1
2 ~ For all service earned on or after October 1,2016, by Second Tier Members the
3 pension benefit accrual rate (multiplier) shall be 1.60 percent.
4
5 L For all service earned on or after October 1,2016 by AMSC and EOC Members
6 of the South Miami Pension Plan, the pension benefit accrual rate (multiplier) will be
7 3.00 percent.
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* * *
(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 shall be equal to (1) an amount determined at the first applicable valuation date by
multiplying the yearly amount of basic benefit by the percentage, if any, by which 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 in no event shall the
supplemental benefit payable at any time be 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. In no 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
in final 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 and EOC members
shall not be eligible for the supplemental benefit cost of living adjustment for benefit accruals
on or after October 1, 2011.
* * *
34 Section 6. That Chapter 16, Article II, Section 16-17(b), "Termination of
35 Employment", shall be amended to provide as follows:
36
37
38
* * *
39 (b) Any such participant shall be entitled to elect Option 1 or Option 2, as described
40 below, except that Option 2 shall be automatically considered as having been elected
41 by the Participant unless Option 1 is elected before the participant's normal retirement
42 date.
43
44 Option 1: A cash payment of an amount equal to the aggregate of the contributions made
45 by the participant prior to termination of employment. Provided that police officer
9
1 participants eligible to withdraw their contributions from this pension plan may only
2 withdraw their contributions without interest.
3
4 Option 2: Pension benefits commencing on what otherwise would have been the normal
5 retirement date of the participant in an amount equal to the greater of that which can be
6 provided by the aggregate of the contributions made by the participant prior to the
7 termination of employment, with credited interest compounded annually at the rate of
8 three (3) percent per annum from the end of the year of payment to the date on which
9 pension benefits commence; or an amount determined by multiplying the amount of
10 pension to which the participant is entitled in accordance with section subsection 16-
11 14(a) or 16-14(b), whichever is applicable by a percentage determined in accordance
12 with the following schedule on the basis of the length of credited service.
N um ber of years Percentage of credited service
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
13
14 Police officer participants, including bargaining unit employees, shall be one hundred (100)
15 percent vested in the retirement plan upon completion of ten (10) years continuous full-time
16 sworn police service. Accordingly, effective October 1, 1993, all police officer participants,
10
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
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 of ten (10) years of continuous credited service. All Second Tier Members shall
be one hundred (100) percent vested in the pension plan upon completion of ten (10) years
of continuous service. AMSC Members shall be one hundred (100) percent vested in the
pension plan upon completion of three (3) years of continuous service. EOC Members shall
be one hundred (100) percent vested in the pension plan upon completion of (3) years of
continuous service. General employees, AMSC or EOC Members who opt to join the
defined contribution plan of the City of South Miami shall vest after one (1) year of service.
Accordingly, effective October 1, 1995, all general employees who are in this plan as of
October 1, 1995, and have ten (10) years or more of continuous service will be one hundred
(100) percent vested.
***
18 Section 7. That Chapter 16, Article II, Section 16-19 "Contributions" is amended as
19 follows:
20
21 (a) Each participant, except as otherwise provided herein, shall contribute in each calendar
22 year towards the cost of the participant's pension an amount equal to three (3) percent of the
23 participant's earnings. VVith the exception of police officer participants, Except as otherwise
24 provided herein, no participant shall make any contributions toward the cost of any past
25 service pension to which the participant is entitled under this plan. The employer shall
26 contribute the balance of the cost, actuarially determined, of providing the benefits of the
27 plan. The employer's contributions shall be deposited into the pension plan on at least a
28 quarterly basis. Effective October 1, 1995, the pension contribution for all general employee
29 participants, including those general employees that are now members of the retirement
30 system, shall be increased from three (3) percent to five (5) percent of earnings. Effective
31 October 1, 2001, the pension contribution for all general employee participants, including
32 those general employees that are now members of the plan, shall be increased from five (5)
33 percent to seven (7) percent of earnings. Police officer participant including bargaining unit
34 employees, that are now members of the plan and any police officers who join the plan in the
35 future shall, effective October 1, 1993, have their contribution increased from three (3)
36 percent to five (5) percent of earnings. Effective October 1, 2001, police officer participants
37 shall contribute 7.5 percent of earnings.
38
39 (1) General employee participants. Should the employer's annual contribution be
40 actuarially determined to exceed twelve (12) percent, both the employer and the participants
41 shall share equally the amount in excess of twelve (12) percent for that fiscal year Effective
42 October 1, 2005, should the total participant and employer's annual contribution be actuarially
43 determined to exceed fourteen (14) percent, both the employer and the general employee
44 participants shall share equally the amount in excess of fourteen (14) percent for that fiscal
45 year. Notwithstanding the above, the maximum general employee contribution rate will be
46 10% of earnings for fiscal years beginning on or after October 1, 2016.
11
1
2 (2) Police officer participants. Effective October 1, 2004, if the total police officer
3 participants~ contributions and employer~ contribution exceeds fifteen (15) percent of
4 covered police payroll for any fiscal year, the excess over fifteen (15) percent shall be shared
5 equally by the employer and police officer participants. Police officer participant contributions
6 shall be deposited in the plan immediately after each pay period. Effective October 1, 2001,
7 an amount actuarially determined, to provide for certain minimum benefits required by
8 Chapter 185, F.S. shall be paid from the South Miami Police Officers Retirement Trust Fund
9 to the plan each year, regardless of the growth or diminution in future Chapter 185, F.S.
10 funds.
11
12 (3) Second Tier Member participants. Second Tier Members shall contribute three (3)
13 percent of earnings.
14
15 (4) AMSC and EOC Member participants in the South Miami Pension Plan. AMSC and
16 EOC Members shall contribute seven (7) percent of earnings.
17
18 @ General employees, AMSC and EOC Member participants in the defined contribution
19 plan of the City of South Miami referenced in Section 16-13 above. General
20 employees, AMSC and EOC Member participants in the defined contribution plan of
21 the City of South Miami referenced in Section 16-13 above shall contribute a minimum
22 of three (3) percent of earnings. The City of South Miami shall contribute seven (7)
23 percent of earnings.
24
25 illl [Other participants.] Effective October 1, 2009, and for one (1) fiscal year thereafter
26 participant contributions for the following employee designations shall be reduced from the
27 above calculated percentages by two (2) percentage points:
28
29 (a) Nonbargaining unit employees.
30 (b) Members of the AFSME bargaining unit.
31 (c) Members of the police lieutenants and captains bargaining unit.
32
33 ill 41S(c) Limitations. To the extent applicable, all employee contributions shall be in
34 accordance with Subsection 415(c) of the Internal Revenue Code and all regulations
35 thereunder, which subsections and regulations are incorporated herein by reference.
36
37 (b) All amounts paid by the employer to the insurance company in accordance with this plan
38 shall represent irrecoverable contributions, except as may be otherwise provided in
39 subsection 16-22(b).
40
41 (c) The employer shall pay the reasonable expenses of the pension board, including any
42 expenses for legal and actuarial services.
43
44 Section 8. That Chapter 16 Article II, Section 16-21, "Purchase of Credited Service"
45 of the City of South Miami Code of Ordinances is hereby amended as follows:
46
47 Purchase of credited service.
12
1 (a) Police officer participants, including bargaining unit employees shall be allowed
2 to purchase credit for active duty in the U.S. military service, prior to employment as a police
3 officer with the city in accordance with USERRA and applicable state law. This provision shall
4 not cover reserve active duty or weekend drill. Police officers electing to purchase prior
5 military time will do so at total cost to the participant with no cost assumed by the city.
6
7 (b) All participants in the city pension plan shall be allowed to purchase credit for
8 immediate past city service up to a maximum of five (5) years in the city pension plan
9 pursuant to procedures promulgated at the time of such purchase. All costs for approved
10 purchase of past city services shall be one hundred (100) per cent borne by the participant
11 with no cost assumed by the city. Should the participant be permitted to purchase past city
12 service over a period of time, the effective date of credited service shall be on the date such
13 purchase is paid in full.
14
15 (c) Any participant classified as a police officer who retires between November 1,
16 2011, and before November 15, 2011, shall be eligible for a retirement incentive, which shall
17 be equal to normal retirement provided:
18
19
20
21
22
23
24
(1 ) The City of South Miami will pay for the full actuarial cost, no later than
the earlier of benefit commencement or December 1, 2011, of up to 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.
25 ~( d~)_~F:.....;o~r--..:a~I~1 ~S~e..:::.co:::::cnC!..:d~T~ie::..:.r....!M=e!..!..m~b..:::.e.:..::rs::.....!.!.h~i re:::..:d~0.!..!.n....!0:.!..r....!a::.!ft~e:..:...r....!O:::...:c~t~0~be~r~1 'L...;2=.;0:::....1.!-1!..J..' ~t!..!.he=-:.fo:::::cI~lo::..!.w!..!Cin~g
26 will apply:
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
ill 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 in a 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 subsequent 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%.
42 (e) For all AMSC Members hired on or after October 1, 2011 and EOC Members,
43 the following will apply:
44
45
46
47
(1) All AMSC and EOC 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
13
1 for purposes of benefit accrual for any and all years of service, up to the
2 number of years they have worked at or been an elected officer for the City of
3 South Miami at any time while employed at or serving as an elected officer for
4 the City of South Miami in a position eligible as of October 1, 2016, for
5 participation in the South Miami Pension Plan. AMSC and EOC Members must
6 pay the full actuarial cost of the service they purchase, as calculated by the
7 South Miami Pension Plan's actuary, and such purchase will be at the AMSC
8 and EOC Member's sole expense. The cost of obtaining the actuary's
9 calculation of the service purchase will be paid one time by the Plan. The cost
10 of obtaining any subsequent calculation will be at the Plan member's expense.
11 The pension benefits purchased for all persons exercising this service purchase
12 option are the benefits for all AMSC and EOC Members including the pension
13 benefit accrual rate (multiplier) of 3.0%.
14
15 Section 9. Rules of Construction. This ordinance will be construed in accordance
16 with Florida statutory law and Florida case law.
17 Section 10. Codification. The provisions of this ordinance shall become and be
18 made part of the Code of Ordinances of the City of South Miami as amended; that the
19 sections of this ordinance may be renumbered or re-Iettered to accomplish such intention;
20 and that the word "ordinance" may be changed to "section" or other appropriate word.
21
22 Section 11. Severability. If any section, clause, sentence, or phrase of this
23 ordinance is for any reason held invalid or unconstitutional by a court of competent
24 jurisdiction, this holding shall not affect the validity of the remaining portions of this ordinance.
25
26 Section 12. Ordinances in Conflict. All ordinances or parts of ordinances and all
27 section and parts of sections of ordinances in direct conflict herewith are hereby repealed.
28
29 Section 13. Effective Date. This ordinance shall become effective upon enactment.
30
31
32
33
PASSED AND ENACTED this __ day of _____ , 2016.
34
35
36
37
38
39
ATTEST:
CITY CLERK
40 1st Reading
41 2nd Reading
42
43
44
45
READ AND APPROVED AS TO FORM:
LANGUAGE, LEGALITY AND
EXECUTION THEREOF
14
APPROVED:
MAYOR
COMMISSION VOTE:
Mayor Stoddard:
Vice Mayor Welsh
1
2
3 CITY ATTORNEY
15
Commissioner Edmond:
Commissioner Harris:
Comm.issioner Liebman:
•
I, }
S h' . M' , ..• out ,: · ... ·Iaml
THE CITY OF PLEASANT L[VINIG
RETIREMENT PLAN
PRESENTATION
CITY OF SOUTH MIAMI
RETIREMENT PLAN HISTORY
• The City has offered a retirement packag~
employees dating back to the 1950's. In 191
opened its first defined benefit pension program.
• Management of this pension from roughly 1990
2008 was poor at best, making nominal invest
returns to the pension (if at all).
• Combination of previous pension mismanagemen1
the recession, created a huge impact on the poli
general employee's required contribution, along
the City's required contribution.
CITY OF SOUTH MIAMI
RETIREMENT PLAN HISTORY
• In haste to react to a tough economy, which was
exasperated by the history of mismanagement, the Cit~
Commission closed,the Defined Benefits (DB Pension:
plan to all new general employees, offered existing
employees the option to "opt out," and opened up a De'
Contribution plan which does NOT require the employe
nor the City, to contribute to their future.
• This resulted in many ,employees either dropping or
severely reducing their pension coverage. From a publ
policy standpoint this was shameful and, needs to be
changed.
• Current DB Pension plan is now attaining at least markl
rate of return and is operated conservatively by a Pens
Board that has retained professional consultants,
money managers and top quality plan administratic
WHAT IS A RETIREMENT PLAN?
A retirement plan is a retirement savings ve
to replace employment income upon retiren
These plans may be set up by emplo~
insurance companies, trade unions,
government, or other institutions.
Two Most Common Retirement Benefits Are:
• Defined Benefit (DB)
• Defined Contribution (DC)
WHY IS IT IMPORTANT FOR THE CITY TO HA'v
RETIREMENT PLAN FOR EMPLOYEES?
• Our employees are one of the City's greatest asset:
Retention is the key to corporate stability and rE
satisfaction.
• Hiring the best talents -City struggling to regain a IE
respect and desirability as an employer and to com
for the best employee talent, benefits can make tt
difference between securing the recruitment.
• Keeping & managing employee's turnover -Emplo~
turnover can be costly. Various sources estimate
cost anywhere from 30% to 2000/0 of an employee'E
annual salary to replace them.
DEFINE CONTRIBUTION (DC) PLAN
I A defined contribution (DC) plan is a retirement plan ir
which the employer, employee or both· make contributi
on a regular basis.
I Retirement income for employees is dependent on the
employees investment strategy and market returns.
I DC Plan provides employees no incentive to stay al
loyal to the City and therefore its residents.
I DC Plans places the burden of an employees retireme
income on the Employee, who may not see the wisdor
participating in a retirement plan.
I A large number of 8M employees do not take advanta
of the current ICMA 7% match the city offers.
DEFINED BENEFITS (DB) PLAN
• DB Plans offer a guaranteed retirement income
based upon the employee's earnings history,
tenure of service and age.
• The greater number of years with the City, the
greater guaranteed income.
• DB Plan offers employees a strong incentive
stay a'nd be loyal to the City and its residents
DEFINED BENEFITS (DB) PLAN
• Employee Pension Contribution -The amount that the
Employee must contribute from their paycheck.
• Normal Retirement Age -The ag~ that employees may
without any reduction in benefit.
• Number of Years to Vest -The minimum years requirec
employees to be eligible to obtain a Pension Benefit.
• Final Avg. Compensation -The annual salary used to
calculate the guaranteed retirement income. .
• Multiplier -A multiplier is the pension formula factor tha
determines the size of the lifetime annuity a pensioner
receives.
• COLA on Pension Benefits -Cost of Living Adjustment
the lifetime income to maintain the value of the pension
benefit relative to inflation.
FINAL AVERAGE COMPENSATION EXAM
Year 1
Year 2
Year 3
Year 4
Year 5
Divided By 5-Years
$36,0
$38,0
$40,0
$42,0
$44,0
$200,0
Final Avg. Compensation $40,0
MULTIPLIER'S USE AND
CALCULATION EXAMPLE
Number of Years Worked at the City
Pension Plan Multiplier
Percentage of Final Avg. Compensation
PENSION BENEFIT
CALCULATION EXAMPLE
Final Avg. Compensation $4
Percentage of Final Avg. Compensation_
Lifetime Annual Pension Income $1
Monthly Benefit Amount $
CITY'S CURRENT RETIREMENT PLANS
• Police DB Plan
• General Employees
• DB Plan (Prior to 2011)
• DC Plan (Post 2011 )
• Department Heads DC Plan
• Elected Officials Retirement
Police Defined Benefit Plan
Employee Pension Contribution
(From Employee Paycheck) FY 16 -12.1 (
Normal Retirement Age / 60 or 25-years of ~
Number of Years to Vest 1 a-years
Final Average Compensation Highest 5-yec
Multiplier 30/0
COLA on Pension Benefits Yes
General Employee City
Defined Benefit Pre-2011
Employee Pension Contributions
(From Employee Paycheck)
Normal Retirement Age
Number of Years to Vest
Final Avg. Compensation
Multiplier
COLA on Pension Benefits
ICMA City Investment Plan
FY11-13.7%
55
10-years
5-years
2.75%
Yes
N/A General Employees
Mgmt. Class 7% Match
General Employees City
Defined Benefit Post-2011
Employee Pension Contribution
(From Employee Paycheck)
Normal Retirement Age
Number of Years to Vest
Final Avg. Compensation
Multiplier
COLA on Pension Benefits
ICMA City Investment Plan
FY16-7%
60
10-years
5-years
2.25%
No
New & Opted-Out Ge
Employees &
Mgmt. Class Up-to
Elected Officials Retirement
Sec. 2-4.5. -Voluntary retirement of elective officers.
a) Whenever any elective officer of the City of South Miami has
elective office of the city or town for a period of twenty (20) yE
more consecutively except for one period not exceeding six (
months ...
(Ord. No. 732, §§ 1-3, 9-17-71)
FLORIDA RETIREMENT SYSTEM (FRS)
• FRS is a retirement option for State, Co
and City employees.
• FRS serves approximately 1.2 million
government employees within the State
Florida and is incredibly financially soun
• The current mandatory employee contri
for the FRS program is 3% of an emplo~
salary for all employee classes ..
FLORIDA RETIREMENT SYSTEM
ApPLICABLE CLASSES
• Regular Class
• Special Risk Class
• Senior Management S'ervice Class (SMSC
• County or City's Elected Officers -EOC
PROPOSED NEW CITY RETIREMENT P
• General Employees
• Opening the DB to all current emploYE
revamping the plan, and requiring
participation of all new employees.
• Adopting plan benefits which are simil
FRS.
ITEMS DEFINED
:mployee Pension Contribution
:From Employee Paycheck)
Normal Retirement Age
Number of Years to Vest
Final Avg. Compensation
Multiplier
COLA on Pension Benefits
ICMA City Investment Plan
City Defined Benefit
Pre -2011
FY 11-13.7%
55
10-years
5-years
2.75
Yes
N/A General Employees
Mgmt. Class 7% Match
City Defir
Post
FY 1
10-
2
New & Opte
Employees ~
Up-
Proposed 2015 Plan
Items Defined
:mployee Pension Contribution
(From Employee Paycheck)
Normal Retirement Age
Number of Years to Vest
Final Avg. Compensation
Multiplier
COLA on Pension Benefits
ICMA City Investment Plan
City Defined Benefit
General Employees
3% Contribution for ,
Employees Joining the·
New Proposed Plan & a .
Cap of 10% for
employees remaining 'in
the current pension plan
65 or 33-years of Service
10-years
8-years
1.6%
No
Opted-Out General Employee
3% Employee Contribution with
a City 7%) Contribution-Vesting
After 1-year
City Defil
Admin N
7% Co
65 or 33-ye
3-~
8-~
3
Opted-Out Adr
30/0 Employee
a City 7%) Con'
After 1-year
COST BENEFIT ANALYSIS
The proposed changes to the City's pension prograrr
provides:
• $47,000 Savings in the first-year over the existil
Plan*.
• $347,000 savings over 5-years over the existin~
Plan*.
• $3.6 million Savings over the 30-years over the
existing DB Plan*.
While ensuring that all of our employees have a resl
retirement program that will provide essential benefi1
employees after their service to the City_
* Gabriel Roeder Smith & Company Actuarial Projection Study
RESOLUTION NO.: _..:....;1 3=-:6=----=1-=6'---....:..1...=.4-=-6=-91"'----
A ~esolution approving and authorizing the City Manager to
execute the June 22, 2016 to Septem"er ]0 June 21, 2019
Agreement between the American Federation of State, County
and Municipal Employees (,'AFSCME',), Local 3294 and the City Of
South Miami.
WHEREAS, the Mayor and City Commission of the City of South Miami seek to
provide the highest levels services for the citizens, residents, businesses and visitors of the City
of South Miami; and
WHEREAS, a Collective Bargaining Agreement with the American Federation of State,
County and Municipal Employees ("AFSCME"), Local 3294 is an integral component of this effort;
and
WHEREAS, the City Administration and AFSCME have successfully concluded
negotiations on a new contraa which achieves these objectives; and
WHEREAS, AFSCME has ratified the proposed contract.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA THAT:
Section I: The Mayor & City Commission approves the Collective Bargaining
Agreement for Fiscal Years beginning June 22,2016 -SepteiftheF lO lune 21,2019 between the
American Federation of State, County and Municipal Employees ("AFSCME'), Local 3294 and the
City of South Miami, and authorizes the City Manager to execute the agreement.
Section 2: If any seaion clause, sentence, or phrase of this resolution is for any reason
held invalid or unconstitutional by a court of competent jurisdiction, the holding shall not affea
the validity of the remaining portions of this resolution.
Section 3: The attached exhibit is incorporated by reference into this resolution.
Section 4: This resolution shall become effective upon its adoption, effective July 13,
2016.
PASSED AND APPROVED this1 2 tQ:iay of July .2016.
APPROVED:
COMMISSION VOTE: 5-0
Mayor Stoddard: Yea
Vice Mayor Welsh: Yea
Commissioner Edmond: Yea
Commissioner Harris: Yea
Commissioner Liebman: Yea
To:
From:
Date:
Subject:
Request:
Background:
SoutOOiami
THE CITY OF PLEASANT lIVIN(l
CITY OF SOUTH MIAMI
OFFICE OF THE CITY MANAGER
The Honorable Mayor & Members of the City Commission
Steven Alexander, City Manager
July 12, 2016
Contract between the City of South Miami and AFSCME.
Agenda"'" N"'/.!J
A Resolution approving and authorizing the City Manager ~o execute the June 22, 2016 to
Sep'el'RiJeF 80 ~une 21. 2019 Agreement between the American Federation of State, County
and Municipal Employees (" AFSCMEn), Local 3294 and the City Of South Miami.
To approve a three (3) year agreement between the AFSCME Collective Bargaining Union and the
City of South MiamI.
This Agreement is entered into by the City of South Miami, hereinafter referred to as the City,
and the American Federation of State, County and Municipal Employees, AFL-CIO, City
Employees Local 3294, hereinafter referred to as the Union.
The negotiation sessions were difficult and challenging for quite some time but in the end, the
bargaining unit appeared to change its strategies, and the discussions became cooperative and
productive resulting in reaching an Agreement on the terms and conditions of a three-year
Collective Bargaining Agreement; effective upon ratification (June 22, 2016) through June 21,
2019. We appreciate the bargaining unit spirit of,cooperation and business like acceptance of
finances, public service and look forward to an enhanced relationship with them as a result, In
the future.
The major highlights and monetary benefit provided by the Agreement and the associated costs
are set forth below: -
MAJOR HIGHLIGHTS OF THE NEW AGREEMENT ARE SHOWN IN BOLD;
ARTICLE 9 GREIVANCE AND ARBITRATION PROCEDURE
Added language Section 2: Should the grieving party fail to observe the time limits as set out in
the steps of this Article, his/her grievance shall be considered conclusively abandoned and the
abandonment shall not be the subject of arbitration.
Added lanRuage Section 3, Number 2:
Any grievance, which cannot be satisfactorily settled with the immediate supervisor, shall be
reduced to writing by the employee and deliver to the employee's Department Director by any
means that provides some evidence of Its delivery, such as e-mail or facsimile transmission,
and if delivery Is by hand, It shall be signed by the Department Director solely to establish date
of receipt. Such grievance shall be presented to the Department Director within three business
days from the immediate supervisor's decision being made under step 1 of this section, but in
any event, the grievance shall be delivered to the Department Director no later than 21 days of
the occurrence of the event(s) which gave rise to the grievance. The Department Director shall,
within ten (10) business days after presentation of the grievance (or such longer period of time
as is mutually agreed upon In writing and signed by both the employee (or employee union
representative) ,and the, Department Director), render his decision on the grievance in writing
and deliver it to the employee, or the employee union representative, by any means that
provides some evidence of Its delivery, such as e-mail or facsimile transmission.
Added language Number 3: and deliver to the ~ity ""anager by any means that provides some
evidence of Its delivery, such as e-mail or facsimile transmission receipt, and if delivery Is by
hand, It shall be signed by the Department Director solely.to establish date of receipt. The
employee may also opt to have the employee's union representative to request that the
Department Director's decision be reversed or modified. The City Manager, or his designee, shall
within ten (10) business days of the appeal (or some longer period as is mutually agreed upon in
writing and signed. by both the employee (or employee union representative) and the
Department Director) render his decision In writing, and deliver a copy to the employee and to
the employee's union organization or representative, both of which shall be deliver by any
means that provides some evidence of its delivery, such as e-mail or facsimile transmission and
if delivery is by hand, it shall be signed by the recipient solely to establish date of receipt.
Added language Number 4: Including the requirements for delivery of grievances/appeals and
employer decisions
Number 5: However, in the event the p~rties are unable to agree upon said impartial arbitrator,
the parties shall jointly request the Federal Mediation Conciliation Service (FMCS) to furnish
seven (7) names from which each party shall have the option of striking two (2) names in
alternating fashion, thus leaving. the seventh (7th) named arbitrator who shall hear the
arbitration in accordance with the FMCS rules of procedure.
Added language Number 6: Nor to interpret any provision that is clear or unambiguous.
Number 9: The initial selection process for choosing an impartial arbitrator shall commence
within ten (10) business days after the receipt of the panel from the American Arbitration
Association and each party shall have three business days to strike a member of the panel.
ARTICLE 13 HOUDAYS
A new holiday has been added to the list of holidays, Columbus Day Holiday.
ARTICLE 17 WAGES
The following language was add~d to the proposed (BA which was approved by the Union on
June 21, 2016.
1. Upon ratification, bargaining unit members shall receive cost of Ih,tng adjustments based on
the Consumer P.rice Index· All Urban Consumers 12-Month Percent Change. for the Miami-ft.
Lauderdale FL area (CPI), (computed as the aggregate or prorated amount depending on the
employees' date of employment, of the last 3-years of COLA, 12-month average change
percentage) which shall have the effect of Increasing the pay for each employee to ensure
employees do not lose earnings to inflation.
Over the past three years the Consumer Price Index-All Urban Consumers 12-month Percent
. Change for the Miami-Ft. Lauderdale, FL area (CPI) has been established by the United States
Department of Labor, Bureau of Labor Statistics as follows:
(Annual CPI 2012) October 1, 2013 -September 30, 2014 = 1.9%
(Annual CPI 2013) October 1, 2014 -September 30, 2015 = 1.3%
(Annual CPI 2014) October 1, 2015 -September 30, 2016 = 2.1%
The projected index for the current year is:
(Annual CP1201S) October I, 2016 -September 30,2017 = 0.9%
Any employee employed before October 1, 2014 shall receive a 5.3% COLA increase.
Any employee employed on or after October 1, 2014 but prior to October I, 2015 shall receive
a 3.4% COLA increase.
Any employee employed on or after October 1, 2015 but prior to October 1, 2016 shall receive
a 2.1% COLA Increase.
2. Effective October I, 2016, and each year thereafter, bargaining unit members shall receive a
cost of living increase, based on the Consumer Price Index -All Urban Consumers 12-Month
Percent Change for the Miami-Ft. Lauderdale FL area (CPI) which shall have the effect of
increasing the pay for each employee. If the CPlls negative, there shall be no decreasing effect
on the employee's pay. The CPI increase shall not exceed 3% in each year.
Any employee employed on or after October I, 2016 but prior to October I, 2017 shall receive
an additional 0.9% COLA increase.
ARTICLE 21 SERVICES TO THE UNION
Added language Section 1: The City agrees to furnish the Union, once a year, one copy of the
following regarding employees in the bargaining unit, provided the employee delivers to the
City a written consent to the dissemination of the information described In section 1.a., below,
to the Union:.
Added language Section 3: During group orientations of new employees within the AFSCME
bargaining unit, the Union shall be given an opportunity, In the presence of the Personnel
Manager, and if available the applicable Department Director, to introduce (or have
Introduced) one of its Local Representatives who may speak briefly to describe the Union,
participation in negotiations and general interest in representing employees. .
ARTICLE 24 PERSONNEL RULES AND REGULATIONS
The Personnel Rules and Regulations of the City of South Miami as published in the City's .
Personnel Manual (Employee Policies and Procedures Manual) in its entirety are now
Incorporated into this contract.
ARTICLE 28 EMPLOYEE AND UNION COOPERATION
New language 1: The Employer shall promptly notify the Union within fifteen (15) days of ,Its
decision to implement any and all new cl~sslflcatlons pertaining to work of a nature performed
by employees within the bargaining unit. If the new classification is a successor title to a
classification covered by this Agreement and the job duties are not significant altered or
changed, the new classification shall automaticallV.become a part of this Agreement. If the
new classification contains a significant part of the work now being done by any of the
classifications covered by this Agreement, or whose duties are similar to other bargaining unit
Employees, the new classification shall automatically become a part of this Agreement. If the
new classification contains work that the Employer deems new and non-union, the parties will
jointly discuss the position, the reasons for the Employer's determination, and attempt to
reach agreement on the status of the new or revised job. If no agreement Is reached the issue
shall be submitted to arbitration.
2. Information Provided to the Union:
The Employer shall provide, upon written ~equest of the Union, for each employee In the
bargaining unit represented by the Union, in Excel format:
1. Name
2. Home address
3. Home phone number
4. Department
5. Position Classification
6. Starting Date
7. Hourly wage
The Union may present a written request for employee information twice every calendar year.
3. PEOPLE Deduction:
The Employer agrees to deduct from the wages of any employee who is a member of the Union
a PEOPLE deduction as provided for in a written authorization. Such authorization must be
executed by the employee and may be revoked by the employee at any time by giving written
notice to both the employer and the union. The Employer agrees to remit any deductions
made pursuant to this provision promptly to the union together with an Itemized statement
showing the name of each employee from whose pay such deductions have been made and
the amount deduct,ed during the period covered by the remittance.
ARTICLE 29 VEHICLE AND EQUIPMENT ABUSE
If an employee abuses vehicles or equipment, the emplovee will be subject to discipline in
accordance with the Discipline policy set forth In the Employee Policies and Procedures Manual
(Personnel Manual).
ARTICLE 31 DRUG AND ALCOHOL TESTING
Section 7: It is further understood and agreed that all issues pertaining to Drug and Alcohol
Testing shall be governed by City of South Miami Drug and Alcohol Free Workplace Policy and
Personnel Rules and Regulations set forth In the Employee Policies and Procedures Manual.
ARTICLE 37 RETIREMENT BENEFITS
Added language Section 6: Notwithstanding sections 1 through 5 above, any employee who Is
participating in the ICMA-RC defined contribution (DC) 457 plan on the date the 2016 -2019
Agreement Is ratified, and all employees hired on or after that date, will be given a one-time,
irrevocable election to participate in one of the following retirement plan options:
Option 1:, New second tier of the City General Employees' Pension Plan, which shall contain
the following provisions:
a. Full vesting upon completion often (10) years of credited service.
b. Future service benefit multiplier is 1.60%.
c. Final Average Compensation will be the average of the highest eight (8) years of
compensation.
d. Normal Retirement Date is 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.
e. The employee contribution will be three percent (3%) of compensation.
f. No cost-of-livlng adjustments will be provided.
Option 2: Defined contribution plan with the following provisions:
a. Employees are required to contribute 3% of compensation.
b. City will contribute 7% of compensation.
c. Employees will be fully vested after one year of service.
Employees who are participating in the ICMA-RC defined contribution (DC) 457 plan on the
date the 2016 -2019 Agreement is ratified, and would like to join the new second tier plan,
must make the Irrevocable election within 9O-days after the adoption of the new pension
ordinance creating the new second tier pension plan.
Th,e existing Defined Contribution Plan will not be offered to any new hires, and it will be
frozen for all persons who are presently In it and elect to Join any of the options of the second
tier pension plan.
Section 7: Notwithstanding, section 9(d) below, effective on the date the 2016 -2019
Agreement is ratified, the employee contribution fot employees who are participating in City
General Employees' Pension Plan on that date will be capped at 10% of compensation.
Sect jon 8: For all AFSCME bargaining unit members who have become employed since the date
of the closing of the Plan, the following will apply. The employees' will be given an opportunity
to buy-back any and all years of service, up-to the number of yearn hey have worked at the
City at any time while employed at the City in a position eligible for participation In the Plan.
Employees must pay the full actuarial cost of the service they buy back, and such buy-back will
be at the employee's sole expense, as calculated by the Retirement Plan's actuary.
The estimated total cost of the AFSCME Collective Bargaining Agreement over the three-year
agreement Is $163,266.
Attachments: Resolution
Agreement
.~ m.iO
We Malce Florida Happen
Ms. Shari Kamal!
Deputy City Manager
City of South Miami
6130 Sunset Drive
South Miami, FL 33143
July 6, 2016
Dear Ms. Kamal!:
I'm happy to report that the CijA between AFSCME Local 3294 and The City of South
Miami was unanimously (25 yes and 0 No's) ratified on June 21, 2016. AFSCME is in legal
agreement with the fact that the contract overlaps into the 3rd year. It was the intent of
both parties that the contract start in July of this year so that the employees can begin
their wage increase immediately. We look forward to a working together with The City
of South Miami.
If you have any questions please feel free to contact me at the numbers below.
Norman Herdocia
Regional Coordinator
AFSCME Florida Region 3
700 S. Royal Poinciana Blvd., Suite 700
Miami Springs, FL 33166
Office: 305-651-6617
Fax: 305-888-7858
Email: NHerdocia@afscmefl.org
CC. Andre Madtes AFSCME Executive Director
Denise Moses Local 3294 President
Stacy Wein Esq. AFSCME Legal Council
American Federation of State, County and Municipal Employees, AFL·CIO
Florida 979 Organizing Committee
weB afsemell.ars FACEBOOK AFSCMEFlaricla TWITTER @AFSCMEFL
TEL (850) 222-0842 FAX (850) 224-2961 3064 Highland OaksTerracG. Tallahnsae.FL 32301
Rachel Cata
From: Shari Kamali
Sent:
To:
Wednesday, July 06, 2016 11 :29 AM
Pepe, Thomas F.
Cc:
Subject:
Rachel Cata; Steven J. Alexander
FW: TA south miami CSA
fyi
Best regards,
Shari Kamali
Deputy City Manager
City of South Miami
6130 Sunset Drive
South Miami, FI33143
O/fice:305-663-6319
Cell: 305-200-4463
SKamali@southmiamifl.qov
From: Stacy Weln [mailto:SWein®afscmefl.org]
Sent: Wednesday, July 6,201611:26 AM
To: Shari Kamali
Cc: Norman Herdocla
Subject: Re: TA south miami CBA
Hi Shari
I happy to tell you that the CBA between AFSCME and The City of South Miami was ratified on June 21,
2016. There are no legal issues with the fact that the contract overlaps into the 3rd year. It was the intent of both
parties that the contract start in July of this year so that the employees can begin their wage increase
immediately. We look forward to a working together with The City of South Miami.
Stacy Wein
In-House Counsel
AFSCME Florida
On. JuIS, 2016, at 5:30 PM, Shari Kamali <SKamali@southmiamifl.gov> wrote:
Please call me asap
Best regards,
Shari Kamall
Deputy City Manager
City of South Miami
6130 Sunset Drive
South Miami, FI33143
Of/ice:305-663-6319
1
Sout Miami
THE CITY OF PLEASANT LIVING
AGREEMENT BETWEEN
CITY OF SOUTH MIAMI
AND
AFSCME
AGREEMENT FOR FISCAL YEARS
June 22, 2016 to June 21 2019
Table of Contents
ARTICLE I AGREEMENT .................................................................................................................................. 4
ARTICLE 2 RECOGNITION ............................................................................................................................... 4
ARTICLE 3 MANAGEMENT RIGHTs ............................................................................................................... 4
ARTICLE 4 NON-DISCRIMINATION ................................................................................................................ 6
ARTICLE 5 NO STRIKES OR LOCKOUTS ........................................................................................................ 6
ARTICLE 6 DUES CHECK-OFF ......................................... : ............................................................................... 7
ARTICLE 7 UNION STEWARD .......................................................................................................................... 7
ARTICLE 8 MAINTENANCE OF DISCIPLINE ................................................................................................. 8
ARTICLE 9 GRIEVANCE AND ARBITRATION PROCEDURE. ....................................................................... 9
ARTICLE 10 SICK LEAVE ................................................................................................................................ 12
ARTICLE 11 ANNUAL LEAVE ......................................................................................................................... 13
ARTICLE 12 FUNERAL LEAVE ...................................................... : .......... , ..................................................... 14
ARTICLE 13 HOUDAYS .................................................................................................................................... 14
ARTICLE 14 HEALTH INSURANCE ............................................................................................................... 15
ARTICLE 15 HEALTJI AND SAFETY .............................................................................................................. 15
ARTICLE 16 UNIFORMS AND SAFETY EQUIPMENT .................................................................................. 16
ARTICLE 17 WAGES ......................................................................................................................................... 17
ARTICLE 18 LONGEVITY BONUS .................................................................................................................. 18
ARTICLE 19 PERFORMANCE EVALUATION ............................................................................................... 18
ARTICLE 20 CLASSIFICMION APPEAL ....................................................................................................... 19
ARTICLE 21 SERVICES TO 11iE UNION ........................................................................................................ 20
ARTICLE 22 CALL BACK ................................................................................................................................ 20
ARTICLE 23 SEVERABIUTY CLAUSE .......................................................................................................... 21
ARTICLE 24 PERSONNEL RULES AND REGULATIONS ............................................................................ 21
ARTICLE 25 COMPLETE AGREEMENT AND WAIVER OF BARGAINING .............................................. 21
ARTICLE 26 PROHlBmON AGAINST REOPENING OF NEGOTIATIONS ............................................... 21
ARTICLE 27 RULES AND REGULATIONS .................................................................................................... 22
ARTICLE 28 EMPLOYEE AND UNION COOPERATION ............................................................................. 22
ARTICLE 29 VEHICLE AND EQUIPMENT ABUSE ...................................................................................... 23
ARTICLE 30 OFF DUTY EMPLOYMENT ....................................................................................................... 24
ARTICLE 31 DRUG AND ALCOHOL TESTING ............................................................................................. 24
ARTICLE 32 COURT TIME ............................................................................................................................... 25
ARTICLE 33 LAYOFF AND JlECALL .............................................................................................................. 25
ARTICLE 34 REPRESENTA,TION DURING NEGOTIATIONS ...................................................................... 27
ARTICLE 3S EMERGENCIES ............................................................... ,. ........................................................... 27
ARTICLE 36 LABOR-MANAGEMENT COMMITTEE ...................... ~ ........................................................... 27
ARTICLE 37 RETIREMENT BENEFITS ........................................................................................................... 28
Page 2 of 33
Section 6: Notwithstanding sections 1 through 5 above, any employee who is participating in the ICMA-RC defined
contribution (DC) 457 plan on the date the 2016 -2019 Agreement is ratified, and all employees hired on or after that
date, will be given a one-time, irrevocable eleCtion to participate in one of the following retirement plan options: .. 29
Option I: New second tier of the City General Employees Pension Plan, which shall contain the following provisions:
....................................................................................................................................................................................... 29
a.Full vesting upon completion of ten (10) years of credited service ................................................. 29
b.Future service benefit multiplier is 1.60% ....................................................................................... 29
c.Final Average Compensation will be the average of the highest eight (8) years of compensation. 29
d.Normal Retirement Date is the earlier of (a) age 65 and completion often (10) years of credited
service; or (b) completion of thirty-three (33) years of credited service ......................................... 29
e. The employee contribution will be three percent (3%) of compensation ......................................... 29
f. No cost-of-living adjustments will be provided ............................................................................... 29
Section 7: NotWithstanding section 9(d) below, effective on the date the 2016-2019 Agreement is ratified, the
employee contribution for employees who are participating in City General Employees Pension Plan on that date will
be capped at 10% of compensation ............................................................................................................................... 30
Section 9: The following changes in the pension are as follows (historical data): ...................................................... 30
ARTICLE 38 WORK IN HIGHER CLASSIFICATION ................................................................................... 32
ARTICLE 39 TERM OF AGREEMENT AND REOPENING ........................................................................... 32
Page 3 of 33
ARTICLE 1 AGREEMENT
Section 1: This Agreement is entered into by the City of South Miami,
hereinafter referred to as the City, and the American Federation of State, County
and Municipal Employees, AFL-CIO, City Employees Local 3294, hereinafter
referred to as the Union.
Section 2: It is the purpose and intention of this 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. It is further the intention of this
Agreement to prevent interruption of work and interference, with the efficient
operation of the City of South Miami and to provide an orderly, prompt, peaceful
and equitable procedure for the resolution of grievances and the promotion of
harmonious relations between the City of South Miami and the Union. Upon
ratification, the provisions of this Agreement shall supersede Personnel Rules,
Administrative Orders, and/or other rules and regulations in conflict herewith. All
references to lIemployee" and all pronouns in this Agreement are intended to
refer to both genders.
ARTICLE 2 RECOGNITION
The City hereby recognizes the Union as the exclusive bargaining
representative of all regular. full' time employees employed as equipment
operators, laborers, sanitation engineers and supervisors, custodial workers, parks
and grounds workers and supervisors, maintenance workers and supervisors, paint
and body workers, building maintenance workers and supervisors,· maintenance
mechanics and supervisors, carpenters, motor equipment operators" and code
enforcement officers employed by the City of South Miami, but excluding all
secretarial employees, professional employees, managerial employees, and
confidential employees.
ARTICLE 3 MANAGEMENT RIGHTS
Section 1: The Union recognizes that the City Manager (hereinafter referred
to as Management") possesses the sole right. duty and responsibility to operate
and manage the City and direct the work force: and the rights, authority, and
discretion which the City deems necessary to carry out its responsibilities and
Page 4 of 33
missions shall be exercised consistently with these terms. Any term and condition
of employment other than wages and benefits not specifically estabfished or
modified by this Agreement shall remain solely with the discretion of the employer
to modify. establish or eliminate, provided such are exercised consistently with the
provisions of Prevailing Benefits, as provided in the current Personnel Rules and
Regulations, as periodically modified and adopted by the City Commission.
Section 2: These rights and powers include, but are not limited to the
authority to:
a. determine the missions and objectives of the City;
b. determine the methods, means and number of personnel
needed to carry out departmental responsibilities;
c. direct the work of the employees, determine the amount and
type of work needed, and in accordance with such
determination relieve from duty because of lack of funds or
lack of work;
d. discipline or discharge employees for cause;
e. schedule operations and shifts;
f. introduce new or improved methods. operations and facilities;
g. hire, examine, classify, promote, train, transfer and assign
employees;
h. schedule and assign overtime work as required;
1. determine the utilization of technology;
j. merge, consolidate, expand, ef curtail or discontinue
temporarily or permanently, in whole or in part, operations
whenever in the sole discretion of the City, good business
judgment makes such action advisable; .
k. contract or subcontract any eXisting or future work;
I. the City will make every effort to notify the union of the
contracting out or privatization of service involving classes
within the bargaining unit within 45 days before the City
decides to contract out or privatize services
m. reduce, assign, or cease any existing job authorized in the
City's approved budget, including those covered in the current
Personnel Manual
n. determine whether and to what extent the work required in its
operation shall be performed by the employees covered by
this Agreement.
o. have the sale discretion to determine the plan design for all
medical and dental coverage that benefits employees
PageS of 33
covered under this Agreement. Management agrees to
consider the recommendations of the Employees' Benefits
Committee as may be established by the City Manager. The
Union shall be entitled to h.ave one seat on any such Employee
Benefits Committee, said representative to be appointed by
the Local's President. .
ARTICLE 4 NON-DISCRIMINATION
Section 1: It is agreed that there shall be no discrimination against any
employee covered by this Agreement, by either the Union or the City because of
race, color, sex, age, national origin, religion, disability, sexual orientation,
membership in the Union, or non-membership in the Union. The parties further
agree that the City may take any and all action in order to fully comply with the
Americans with Disabilities Act.
Section 2: All employees covered by this Agreement shall have the right to
join the Union as well as the right not to join the Union. Neither the Union nor its
members or agents shall interfere with, restrain, or coerce employees into
membership in the Union. The Union and the City shall not discriminate against
any employee because of that employee's membership or lack of membership in
the Union or by virtue of the employee holding office or not holding office in the
Union.
ARTICLE 5 NO STRIKES OR LOCKOUTS
Section 1: There will be no strikes, work stoppages, picketing, slowdowns,
boycotts, or concerted failure, or refusal to perform assigned work while working
or while in City uniforms, by the employees covered under this Agreement for any
reason Whatsoever, and there will be no lockout by the City for the duration of this
Agreement. The Union supports the City fully in maintaining efficient operations.
Section 2: It is recognized by the parties that the City is responsible for and
engaged in activities that are the basis of. the health and welfare of the citizens of
the City and that any violation of this Article would give rise to irreparable
damage to the City and the public at large. Accordingly, it is understood and
agreed that in the event of any violation of this·Article; the City shall be entitled to
seek and obtain immediate injunctive relief.
Page6of33
Section 3: Informational picketing is that picketing permitted solely for the
purpose of conveying to the general public the Unions position in the labor
dispute.
Section 4: In the event of a strike, work stoppage or interference with the
operation and/or accomplishment of the mission of the City, the Union shall
promptly and publicly order the employees to return to work and attempt to bring
about a prompt resumption of normal operations.
ARTICLE 6 DUES CHECK-OFf
Section 1: Upon receipt of a lawfully executed written authorization
from an employee, the City agrees to deduct the regular Union dues of such
employee from his regular pay and remit such deduction to the duly elected
Treasurer of the Union within thirty (30) days from the date of deduction. The
Union will notify the City in writing thirty (30) days prior to any change in the
regular Union dues structure.
Section 2: An employee may revoke his/her Union dues deduction in
accordance with Section 447.303 Florida Statutes.
Section 3: The Union agrees to indemnify and hold the City and any
of its agents or Commission members harmless against any and all claims, suits,
orders or judgments brought or issued against the City as a result of any action
taken or not taken by the City under the provisions of this Agreement.
ARTICLE 7 UNION STEWARD
Section 1: The Union has the right to select an employee from within the
Bargaining l!nit, as herein defined, to act as Union Steward. The name of the
Union Steward and alternate Steward shall be certified, in writing, to the City
Manager by the Union. It is agreed and understood by the parties to this
Agreement, that the Union Steward may, without loss of pay, with prior approval
of his supervisor, process grievances. The supervisor's approval shall not be
unreasonably withheld. It is agreed to and understood by the parties to this
Agreement that there shall not be more than one (1) Steward and one (1)
alternate Steward within the Bargaining Unit, as herein defined. It is agreed *e
and understood by the Union that the Union Steward, or his/ her alternate,
Page 7 of 33
(hereinafter collectively referred to as lithe Union Steward") shall process
grievances and conduct his/her other Union duties in such a manner that does
not disrupt normal City activities, work production and services.
Section 2: Every effort will be rhode, by both the City of South Miami and the
Union, to allow the Union Steward to investigate grievances as rapidly as possible,
preferably on the date that the grievance becomes known, and within at least
twenty-four (24) hours. The investigation of a pending grievance or personal
contact of the employee during work time by the Union Steward shall not be .
done without first receiving prior approval from both employees' supervisors.
Approval shall not be unreasonably withheld.
Section 3: In no event shall the Department layoff, discharge, or discriminate
against a Union Steward for action taken in the performance of his/her duty as a
Steward. .
ARTICLE 8 MAINTENANCE OF DISCIPLINE
Section 1: The parties understand and agree that the maintenance of
discipline is necessary to insure the efficient and safe operation of the City.
Therefore, the City reserves the right to impose disciplinary actions (penalties) for
work deficiencies and/or the failure to meet established standards of conduct.
Disciplinary actions shall be taken in the most timely, judicious and consistent
manner possible. The City will utilize the progressive discipline policy as set forth in
the Personnel Manual, which shaJl take precedence in suc.h matters.
Section 2: Whenever it is al/eged that an employee has violated any rule,
reg!Jlation or policy, or upon the discovery of the violation, the employee shaJl be
notified by his/her supervisor of said violation as soon as practicable or upon the
conclusion of the investigation if one is being conducted. Every effort shall be
made to have an informal discussion with the employee prior to the issuance of
any disciplinary action.
Section 3: There shall be no Performance Report, Evaluation Statement, or
Reprimand placed in an employee'S personnel folder unless the employee has
been given a copy prior to or at the same time that it is placed in the file.
Section 4: All matters concerning discharge and discipline are to be
resolved only in accordance with the procedures set forth below. It is specifically
Page 8 of 33
agreed and understood that probationary employees shall have no right to
challenge disciplinary action.
Section 5: An employee may choose to appeal a disciplinary action, which
has no loss of time, to the City Manager. Anappeal to the City Manager must be
done in writing within three business days from the time the disciplinary notice is
issued to the employee. The appeal must present the facts dealing with the
specific circumstance and explain why the City Manager should reconsider the
discipline. The City Manager's decision is final and the employee does not have
the right to appeal or grieve once this appeal process is selected. Alternatively,
the employee may choose to appeal a disciplinary action through the grievance
process as specified in Article (9) of this Agreement. The employee can only
select one of the two procedures specified in this section.
ARTICLE 9 GRIEVANCE AND ARBITRATION PROCEDURE
Section 1: In a mutual effort to provide a harmonious working relationship
between the parties to this Agreement, it is agreed and understood that there
shall be a procedure for the resolution of grievances between the parties and
that such· procedure shall cover grievances involving the application or
interpretation of this Agreement.
Section 2: Every effort will be made by the parties to settle any grievance as
expeditiously as possible. Should the grieving party fail to observe the time limits
as set out in the steps of this Article, his/her grievance shall be considered
conclusively abandoned and the abandonment shall not be the subject of
arbitration. Any grievance not answered by management within the prescribed
time limits shall automatically advance to the next higher step.
Section 3: Grievances shall be presented in the following steps:
1. The employee shall first take up his/her griev·ance with his immediate
supervisor, who is not a member of the Bargaining Unit, within ten (10) business
days of the occurrence of the event(s) which gave rise to the grievance. This first
step (between the employee and his immediate supervisor) shall be on an
informal and oral' basis, and may involve the employee's union representative or
any other representative of the employee:
2. Any grievance, which cannot be satisfactorily settled with the
immediate supervisor, shall be reduced to writing by the employee and deliver to
the employee's Department Director by any means that provides some evidence
Page 9 of 33
of its delivery, such as e-mail or facsimile transmission, and if delivery is by hand, it
shall be signed by the Department Director solely to establish date of receipt..
Such grievance shall be presented to the Department Director within three
business days from the immediate supervisor's decision being made under step 1
of this section, but in any event, the grievance shall be delivered to the
Department Director no later than 21 days of the occurrence of the event(s)
which gave rise to the grievance, The Department Director shall, within ten (10)
business days after presentation of the grievance (or such longer period of time as
is mutually agreed upon in writing and signed by both the employee (or
employee union representative) and the Department Director), render his
decision on the grievance in writing and deliver it· to the employee, or the
employee union representative, by any means that provides some evidence of its
delivery, such as e-mail or facsimile transmission .
.3. In the event the employee is not satisfied with the disposition of the
grievance in Step (2), he shall have the right to appeal the Department Director's
decision to the City Manager, or his designee, within ten (10) business days of the
issuance of the Department Director's decision. Such appeal must be
accompanied by the filing of a copy of the original written grievance together
with a letter signed by the employee and deliver to the City Manager by any
means that provides some evidence of its delivery, such as e-mail or facsimile
transmission receipt, and if delivery is by hand, it shall be Signed by the
Department Director solely to estabHsh date of receipt. The employee may also
opt to have the employee'S union representative to request that the Department
Director's decision be reversed or modified. The City Manager, or his designee,
-shall within ·ten (10) business days of the appeal (or some longer period as is
mutually agreed upon in writing and Signed by both the employee (or employee
union representative) and the Department Director}) render his decision in writing,
and deliver a copy to the employee and to the employee's union organization or
representative, both of which shall be deliver by any means that provides some
evidence of its delivery, such as e-mail or facsimile transmission and if delivery is
by hand, it shall be signed by the recipient solely to establish date of receipt.
~. Where a grievance is general in nature in that it applies to a number
of employees rather than a single employee, or if the grievance is' directly
between the employee's(s) union organization and the City, such grievance shall
be presented in writing directly to the Department Head within ten (10) business
days of the occurrence of the event (s) which gave rise to the grievance. The
grievance shall specify the names of the employees desiring to grieve. The class
action grievance must be signed by the aggrieved employees or the President or
representative of the employee union organization. Thereafter, the grievance
shall be processed in accordance with the procedures set forth in Step (2) and
Page lOof33
Step (3), including the requirements for delivery of grievances/appeals and
employer decisions
~ In the event a grievance processed through the grievance
procedure has not been resolved at Step (3), either party may request that the
grievance be submitted to arbitration within fifteen (15) business days after the
City Manager. or his designee, renders a written decision on the grievance. The
arbitrator shall be any ~mpartial person mutually agreed upon by and between
the parties. However. in the event the parties are unable to agree upon said
impartial arbitrator, the parties shall jointly request the Federal Mediation
Conciliation Service (FMCS) to furnish five (5) names from which each party shall
have the option of striking two (2) names in alternating fashion, thus leaving the
final arbitrator who shall hear the arbitration in accordance with the FMCS rules of
procedure.
6. The arbitrator will confine his consideration and determination to
the written statement of the grievance presented in Step (2) of the grievance
procedure. The arbitrator shall have no authority to change, amend. add to,
subtract from, or otherwise alter or supplement this Agreement, or any part
thereof or amendment thereto nor to interpret any provision that is clear or
unambiguous. The arbitrator shall have no authority to consider or rule upon any
matter which is stated in this Agreement not to be subject to arbitration or which is
not a, grievance as defined in this Agreement: nor shall this collective bargaining
agreement be construed by the. arbitrator to supersede applicable laws in
existence at the time of signing of this Agreement. except to the extent as
specifically provided herein.
7. Consistent with the provision of the Florida Public Employees
Relations Act. Chapter 447, et seg., it is mutually acknowledged and agreed that
this collective bargaining agreement shall be administered within the amounts
appropriated by the City Commission for funding of the collective bargaining
agreement. Accordingly, and not withstanding any other provisions of this
collective bargaining agreement, the arbitrator shall have no authOrity, power, or
jurisdiction to construe any provisions of law, statute, ordinance. resolution, rule or
regulation. or provision of this collective bargaining agreement to result in,
obligate, or cause the City to have to bear any expense. debt, cost or liability
except for the expense of arbitration, by both parties. and the economic benefits
provided by this Agreement, which result directly or indirectly, in the City
exceeding the amounts appropriated and approved by the City Commission for
the funding of this collective bargaining agreement as agreed upon by the
parties. Any such award, which contravenes or is not in compliance with the
provisions of this paragraph shall be null and void.
Page 11 of33
8. Each party shall bear the expense of its own witness(es) and of its
own representatives for the purpose of the arbitration hearing. The impartial
arbitrator's fee and related expenses and expenses of obtaining a hearing room,
if any, shall be equally divided between the parties. Any party desiring a
transcript of the hearing shall bear the cost of such tronscript unless_ both parties
mutually agree to share said cost.
9. The initial selection process for choosing an impartial arbitrator shall
commence within ten (10) business days after the receipt of the panel from the
F.ederal Mediation Conciliation Service and each party shall have three business
days to strik.e a member of the panel. .copies of the arbitrator's award made in
accordance with the jurisdiction and authority under this Agreement shall be
furnished to both parties within thirty (30) days of the close of the arbitration
hearing. The arbitrator's award shall be final and binding on the parties.
10. No probationary employee shall be entitled to utilize the
grievance/arbitration ·procedure herein on any matter involving discharge,
suspension, demotion or other disciplinary action.
ARTICLE 10 SICK LEAVE
Section 1: The City agrees to institute a use of sick leave reduction p!an for
employees hired before October 1, 1995, with an existing cap of 600 hours for the
term of this Agreement, which would provide employees with a reward for
unused sick. leave When they retire or resign, in accordance with the follOwing
schedule:
Date of hire to five (5) years of service .......................... 0%
Five (5) years to ten (l0) years of service. 25%
Ten (10) years to fifteen (15) years of service ............. 50%
Fifteen (15) to twenty (20) years of service .................. 75%
Over twenty (20) years of service ............................... 1 00%
Section 2: Sick. leave is a benefit to be used by employees when needed for
illness. Sick leave is not a benefit to be used at the employee's discretion as
though it were annual leave; rather, sick leave is a privilege, which shall be
allowed only in a case of illness. The employee must speCifically request sick.
leave-use.
Section 3: Effective October 1, 1995, employees will be allowed to accrue
sick leave in excess of the 600 hours cap.
Page 120f33
Section 4: All employees who have attained a sick leave balance of a
minimum of 36 days (288 hours) shall be eligible on their first anniversary date
following that accumulation to convert up to 32 hours of their annual unused sick
leave balance in excess of 288 hours to vacation leave. An employee who uses
in excess of 32 hours of sick leave during a one-year period will not be eligible for
this benefit.
Section 5: Effective October 1. 2001. employees covered under this
Agreement. which were hired on or after October 1. 1995. shall be eligible to
receive one (1) QA additional day off for not using sick leave during that calendar
year.
ARTICLE 11 ANNUAL LEAVE
Section 1: Employees shall earn 'and receive annual leave at their
respective classified rate of pay in accordance with the following schedule:
Years of Uninterrupted Service Amount of Vacation Leave
One to five years inclusive 12 working days
Six to fourteen years inclusive 15 working days
Fifteen to nineteen years inclusive 18 working days
Twenty years and over 21 working days
Section 2: No vacation pay shall be allowed until an employee has
worked at least one (1) continuous 12-month period. At the end of the 12-
month period, the employee shall be entitled to twelve (12) working days.
Section 3: It shall be mandatory for each employee to use all earned
vacation time each year, on or before his next anniversary date. Everything
over that will be cancelled. Under exceptional circumstances and upon
written request within the year in which the vacation is due, and with the
approval of the City manager, vacation time may be extended for one year
only.
Section 4: Vacation leave may be taken to the extent that it is earned by
an employee, only with the prior approval of the department head, upon written
application by the employee in advance, and at the convenience of the City.
Page 130f33
Section 5: Any earned and credited vacation leave to the credit of an
employee when terminating employment with the city will be paid pro-rata at the
employee I s current rate of pay with the last paycheck received.
Section 6: Any employee covered by this Agreement who has over twenty
years of uninterrupted service shall accumulate one additional day of annual
leave per year of service.
ARTICLE 12 FUNERAL LEAVE
1. Employees covered by this Agreement shall be entitled to funeral leave with
pay up to a maximum of four (4) work days in the event of a death in the
employee's immediate family. Two (2) additional days of leave may be
granted if travel is out of state.
2. The immediate family shall be defined as wife or husband, domestic partner.
grandparents, parents, children, step children, grandchildren, step
grandchildren, brothers, step brothers, sisters, step sisters, father-in-law, mother-
in-laws, brother-in-law and sister-in-law.
3. Proof of death in the immediate family in the form of a death certificate or
public obituary must be provided to the City Manager or their designee before
compensation is approved.
4. Funeral leave shall not be charged to sick leave or annual leave.
ARTICLE 13 HOLIDAYS
The paid holidays listed below shall be granted under the following conditions:
1) January 1
2) 3rd Monday of January
3) 3rd Monday of February
4) 4th Monday of May
5) July 4
6) 1st Monday of September
7) 2nd Monday of October
8) November 11
Page 140f33
New Year's Day
Martin Luther King's Birthday
President's Day
Memorial Day
Independence Day
Labor Day
Columbus Day Holiday
Veteran's Day
9) Last Thursday in November
10) Friday after Thanksgiving
11) ~ day December 24
12) December 25
Thanksgiving Day
Christmas Eve
Christmas Day
When a holiday falls on a regularly assigned day off for an employee, such
employee shall be compensated by another day off.
When a holiday falls on a Sunday, the following Monday shall be observed
and when it falls on a Saturday. the proceeding Friday shall be observed.
Each employee shall be entitled to a day off, with pay. for his/her birthday
each year, following one year of continuous employment. The day off is to be
taken within a reasonable time and will be determined by the supervisor and
employee. Approval/denial of the requested day off shall not he made in an
arbitrary and capricious manner.
Each employee shall be entitled to e two days off, with pay, as floating
holidays each year, following one year of continuous employment. The supervisor
must approve the day off.
In order to be eligible for holi.day pay, the employee must work the
scheduled workday before and the scheduled workday after the holiday.
ARTICLE 14 HEALTH INSURANCE
The City agrees to pay for HMO health insurance for all employees covered by
this agreement. Employees wanting the optional P~S or PPO health insurance will
pay the difference between the two plans. The City. will provide levels of dental
coverage, as well as life and disability insurance. The employee agrees to pay for
100 % of dependent ~overage for health and dental insurance. The City has the
right to change the plan designs as 0° management right. .
ARTICLE 15 HEALTH AND SAFETY·
Section 1: The parties agree that it is in the best interests of the City and its
employees to provide safe and sanitary working conditions. The City and the
Union insist that all employees observe the safety rules and procedures
established by the City. Failure of employees to comply may result in diSCiplinary
action. If an employee believes he is being required to work under life
threatening unsafe conditions or in a situation where a serious safety violation
Page 15 of33
exists, he shall immediately notify his supervisor who will investigate the condition
and take appropriate action, if necessary.
Section 2: Safe Driving Awards. Any employee covered by this Agreement
who drives or operates motor equipment twenty-five percent of the time or
greatecin the performance of their duties shall be eligible to receive "a safe
driving certificate and a $200 bonus in December if the employee has not had a
preventable accidents/Violations or chargeable accidents within that calendar
year. Employees shall be held accountable for accidents that are found to be
preventable. The City Manager or designee shall determine whether accidents
were preventable.
Section 3: An employee shall receive a copy of the on the Job Injury
Report after the report is provided to the employee and after the employee has
signed the report. Neither the City, Union .. nor any individual employee covered
under this Agreement may refuse to report an injury nor prevent, hinder or
otherwise discourage aisswaae an employee from reporting an injury. Failure to
promptly report a work related accident or injury shall result in disciplinary action.
ARTICLE 16 UNIFORMS AND SAFETY EQUIPMENT
Section 1: Safety Equipment. Employees of the applicable Department
shall be issued two (2) pairs of safety shoes per employee for use at work each
year. "In addition to safety shoes, the following safety equipment shall also be
used by unit employees as applicable: safety gloves, eye goggles, safety vests,
life vests (boat), hard hats, safety harnesses, and safety belts (vehicle). Employees
who sign for and" receive safety equipment shall use it" in a safe manner, as
directed by the Pyblie \6JoFks Director. Employees are responsible for using safety
-equ!pment properly~ If an injury occurs because an employee did not use safety
equipment properly, the employee may be disciplined.
Section 2: Uniforms: Each employee shall receive four (4) pair of pants and
ten (10) work shirts, per person each year. "
Section 3: Gloves: Each employee shall receive two (2) pairs of gloves per
year. In extreme circumstances, the Director will determine if the employee
requires an additional pair during the year.
Page 160f33
Section 4: The City shall issue to each employee covered by this
Agreement a jacket of sufficient quality to meet the safety and/or uniform needs
of the Department. Furthermore, safety shoes will be replaced as necessary to
maintain safety standards of the Department.
ARTICLE 17 WAGES
1. Upon ratification bargaining unit members shall receive cost of living
adjustments based on the Consumer Price Index -All Urban Consumers 12-
Month Percent Change for the Miami-Ft. Lauderdale FL area (CPI), (computed
as the aggregate or prorated amount depending on the employees' date of
employment, of the last 3-years of COLA, 12-month average change
percentage) which shall have the effect of increasing the pay for each
employee to ensure employees do not lose earnings to inflation.
Over the past three years the Consumer Price Index-All Urban Consumers 12-
month Percent Change for the Miami-Ft. Lauderdale, FL area (CPI) has been
established by the United States Department of Labor; Bureau of Labor Statistics
as follows:
(Annual CP12012) October 1,2013 -September 30,2014 = 1.9%
(Annual CPI 2013) October 1, 2014 -September 30, 2015 = 1 .3%
(Annual CP12014) October 1,2015 -September 30,2016 = 2.1%
the projected index for the current year is:
(Annual CPI 2015) October 1, 2016 -September 30,2017 = 0.9%
Any employee employed prior to October 1, 2014 shall receive a 5.3% COLA
increase.
Any employee employed on or after October 1, 2014 but prior to October 1,
2015 shall receive a 3.4% COLA increase.
Any employee employed on or after October 1, 2015 but prior to October 1,
2016 shall receive a 2.1% COLA increase.
2. Effective October 1, 2016, and each year thereafter, bargaining unit members
shall receive a cost of living increase, based on the Consumer Price Index -All
Urban Consumers 12-Month Percent Change for the Miami-Ft. Lauderdale FL
area (CPI) which shall have the effect of increasing the pay for each
employee, unless the CPI is zero or is negative, which shall then have no
decreasing effect on the employee's pay unless the CPI for the previous year
Page 17 of33
or an average of the last 2 years exceeded 3% or the CPI increase shall not
exceed 3% each year.
Any employee employed on or after Oc::tober 1. 2016 but prior to October 1,
2017 shall receive an additional 0.9% COLA increase.
ARTICLE 18 LONGEVITY BONUS
Employees covered by this Agreement with 10 years of continuous
satisfactory full time service shall receive a longevity bonus of 3% of the
employee's base salary on their anniversary date (Longevity 1). After 15 years of
continuous satisfactory full time service an additional 3% longevity bonus will be
compounded (Longevity 2). After 20 years of continuous satisfactory full time
service an additional 3% longevity bonus will be compounded (longevity 3).
After 25 years of continuous service with the City, all bargaining unit employees
who are employed in positions covered by this Agreement shall receive an
addifionallongevify bonus, which is 3% of their salary compounded (Longevity 4).
ARTICLE 19 PERFORMANCE EVALUATION
During the term of this Agreement, all employees shall be evaluated on
their anniversary date (or as close thereto as possible. All newly hired employees
will have a one-year probationary period. . Should an employee covered
hereunder reach the toP. of the salary range in his job classification, he shall be
"red-lined" and shall not be eligible for any increases. Any employee receiving an
overall evaluation of improvement needed or unsatisfactory shall be reevaluated
within no more than ninety (90) days from the first evaluation. The anniversary
date for future evaluations shall continue being the employee's anniversary. hired,
or rehired, date. .
In the event that the employee remains unsatisfactory after the second
evaluation,' the City Manager may take such further action, as he deems
appropriate to improve the performance and a third reevaluation shall be
conducted within no more than ninety (90) days from the issuance. of the second
evaluation. .
If the employee remains unsatisfactory after the third evaluation, the City
Manager may terminate the employee.
Page 18of33
. In the event that an employee is dissatisfied with a less than satisfactory
evaluation, the employee may, within five (5) working days of receiving his
evaluation, file a written appeal to the City Manager or his/her designee. The City
Manager or his/her designee shall hold a meeting with the employee and a union
representative if desired and shall thereafter issue his/her decision. The City
Manager's decision regarding the contents of the performance evaluation and
the employee's employment status shall be final and binding and shall not be
subject to review, grievance, or any legal action within a court of competent
authority.
All newly hired employees will be given an interim evaluation after six (6)
months.
ARTICLE 20 CLASSIFICATION APPEAL
Section 1; Whenever an employee has reason to believe that he/she is
misclassified, he/she may apply for a review of !:lis/her classification by submitting
such a request in writing to his/her Department Director. The request shall include
proposed job description. Within 20 calendar days of receipt of the request. the
Department Director shall forward the request, with any comments that the
Department Director wishes to make, to the City Manager.
Section 2: Within 30 days of receipt of the request for reclassification, the
City Manager or his/her designee, shall meet with the employee (and, if the
employee requests, a representative of his/her choosing). At the meeting, the
employee may produce any documents to support his/her request for
reclassification. Within 30 calendar days of such meeting, the City Manager shall
render his decision in writing.
Section 3: If the City Manager or designee determines that an employee is
misclossified, the employee shall be placed in a current appropriate classification
(as determined by the City Manager or designee), unless the City Manager or
designee determines that there is no existing appropriate classification. In such
cases, the City Manager 5AeD may recommend to the City Commission that a
new classification, job description, and pay range be adopted. Failure of the City
Commission to approve the City Manager's recommendation shall not bind the
City to any further action. In the event that a request for reclassification is
granted, the employee shall receive the new compensation beginning with the
date of the City Manager's or designee's decision. '
Pa~e 190f33
Section 4: The City Manager's or designee's decision regarding the
classification determination shall be final and is not grievable.
Section 5: Employees may not submit a request for' reclassification more
than once every twelve (12) months.
ARTICLE 21 SERVICES TO THE UNION
Section 1: The City agrees to furnish the Union, once a year, one copy of
the following regarding employees in the bargaining unit, provided the employee
delivers to the City a written consent to the dissemination of the information
described in section 1.a., below, to the Union:
a) A list of their names, addresses, classifications, and social security
numbers; and
b) A list of employees by occupation.
Section 2: The City will furnish the Union with sufficient bulletin board space
for up to four (4) Union notices, size 8-1 /2 X 14 at the following two (2) locations:
Public Works and the employee lounge. It is intended for the purpose of
interpretation that the bulletin boards shall be provided primarily for employee
information and internal communications and not for the primary purpose of
communicating with the general public. The Department Director must first
approve anything that the Union wishes to post on the bulletin board.
Section 3: During group orientations of new employees within the AFSCME
bargaining unit, the Union shall be given an opportunity, in the presence of the
Personnel Manager, and if available the applicable Department Director, to
introduce (or have introduced) one of its Local Representatives who may speak
briefly to describe the Union, participation in negotiations and general interest in
representing employees.
ARTICLE 22 CALL BACK
Employees called back· to work after one hour from their normal tour of
duty shall be guaranteed a minimum of three (3) hours pay, of which shall be
considered hours work.ed for the purpose of determining overtime compensation,
providing 'such work does not immediately precede or immediately extend the
employees regularly assigned work shift.
Page 200f33
ARTICLE 23 SEVERABILITY CLAUSE
Should any provision of this collective bargaining agreement, or any part
thereof be rendered or declared invalid by reason of any existing or subsequently
enacted legislation, or by any decree of a court of competent jurisdiction, all
other Articles and Sections, and parts thereof, of this Agreement shall remain in full
force and effect for the duration of this Agreement.
ARTICLE 24 PERSONNEL RULES AND REGULATIONS
The'Personnel Rules and Regulations of the City of South Miami as published in the
City's Personnel Manual (Employee Policies and Procedures Manual) are hereby
incorporated into this contract in its entirety.
ARTICLE 25 COMPLETE AGREEMENT AND WAIVER OF BARGAINING
Section 1: It is agreed and understood that this Agreement constitutes the
complete understanding between the parties, concluding all collective
bargaining during its term, except as may otherwise be specifically provided
herein. The entire Agreement may be reopened for negotiations in the event any
portion of it is not approved by the City Commission of South Miami, or funds are
not available for its implementation.
Section 2: It is understood and agreed that if any part of this Agreement is
in conflict with mandatory Federal or State Laws or mandatory provisions of the
City Charter or Ordinances, such parts shall be re-negotiated and the
appropriate mandatory provisions shall prevail.
ARTICLE 26 PROHIBITION AGAINST REOPENING OF NEGOTIATIONS
Except as specifically provided herein, neither party hereto shall be
permitted to reopen or renegotiate this Agreement or any part of .this Agreement
unless the City declares a state of financial urgency. This Agreement contains
the entire agreement of the parties on all matters relative to wages, hours,
Page 11 of33
working conditions. and all other matters. which have been. or could have been
negotiated by and between the parties prior to the execution of this Agreement.
ARTICLE 27 RULES AND REGULATIONS
Section 1: It is agreed and understood that the City has Rules and
Regulations governing employment. Said Rules and Regulations shall be
formulated. amended. revised and implemented in the sole and exclusive
discretion of the City. provided. however, that said new, amended, revised, arid
implemented rules or regulations will be neither arbitrary nor capricious.
Section2: The City shall provide a copy of any new rule or regulation, as
well as any amendment or revision to a rule or regulation to the Union. Said rules
or regulations will be provided prior to their effective date, if possible. As
provided in Section 1, the Rules and Regulations will be formulated, amended,
revised and implemented in the sole and exclusive discretion of the City.
However, the Union may submit a written request to bargain over the impact of
the new and/or revised rule or regulation within fourteen (14) calendar days
from receipt of the rule or regulation. The City agrees that it will immediately
participate in requested impact bargaining, provided that the effective date of
the revised rule or regulation will not be delayed by the impact bargaining.
ARTICLE 28 EMPLOYEE AND UNION COOPERATION
The Union agrees that it and all of the members of the bargaining unit Will,
at all times, work in the best interests of the City and further, will perform efficient
work and put forth their best efforts toward obtaining lowest possible operating
costs to protect the properties and serve the best interests of the City and its
residents.
1. Accretion:
The Employer shall promptly notify the Union within fifteen (15) days of its decision
to implement any and all new classifications pertaining to work of a nature
performed by employees within the bargaining unit. If the new classification is a
successor title to a classification covered by this Agreement and the job duties
are not significant altered or changed, the new classification sh.all automatically
become a part of this Agreement. If the new classification contains a significant
part of the work now being done by any of the classifications covered by this
Page 220f33
Agreement, or whose duties are similar to other bargaining unit Employees, the
. new classification shall automatically become a part of this Agreement. If the
new classification contains work that the Employer deems new and non-union,
the parties will jointly discuss the position, the reasons' Jor the Employer's
determination, and attempt to reach agreement on the status of the new or
revised job. If no agreement is reached the issue shall be submitted to arbitration.
2. Information Provided to the Union:
The Employer shall provide, upon written request of the Union, for each
employee in the bargaining unit represented by the Union, in Excel format:
1. Name
2. Home address
3. Home phone number
4. Department
5. Position Classification
6. Starting Date
7. Hourly wage
The Union may present a written request for employee information twice every
calendar year.
3. PEOPLE Deduction:
The Employer agrees to deduct from the wages of any employee who is a
member of the Union a PEOPLE deduction as provided for in a written
authorization. Such authorization must be executed by the employee and may
be revoked by the employee at any time by giving written notice to both the
employer and the union. The Employer agrees to remit any deductions made
pursuant to this provision promptly to the union together with an itemized
statement showing the name of each employee from whose pay such
deductions have been made and the amount deducted during the period
covered by the remittance.
ARTICLE 29 VEHICLE AND EQUIPMENT ABUSE
Page 23 of33
If an employee abuses vehicles or equipment, the employee will be
subject to discipline in accordance with the Discipline policy set forth in the
Employee Policies and Procedures Manual (Personnel Manual).
ARTICLE 30 OFF DUTY EMPLOYMENT
Employees shall be permitted to work off duty jobs with the prior approval
of the City Manager. Off duty jobs that have hours that conflict with the
employee's regular shift, that present conflicts of interest, etc. shall not . be
approved. However, approval of off-duty employment shall not be unreasonably
withheld.
ARTICLE 31 DRUG AND ALCOHOL TESTING
Section 1: The City and the Union recognize that employee substance
and alcohol abuse has an adverse impact on City govemment. the image of City
employees, the general health, welfare and safety of. employees, and to the
general public at large.
Section 2: Using, selling, possessing or being under the influence of drugs
or controlled substances while at work is prohibited. Employees are further
prohibited from consuming alcohol and drugs (other than drugs/narcotics
prescribed by a Florida licensed doctor) whHe on duty and/or abusing alcohol
and/or drugs off duty to the extent that such use and/or abuse tends to have an
effect upon the performance of their job functi'ons.
Sect jon 3: The City may require any employee to submit to a blood
analysis, urine analysis, and/or intoxalyzer, when it has a reasonable suspicion that
an employee is under the influence of or using alcohol or drugs (other than drugsl
narcotics prescribed by a Florida licensed doctor) and/or when an employee is
involved in an accident (i.e., automobile or an incident that causes injury to
persons or prop"erty damage).
Section 4: All bargaining unit employees covered by this Agreement have
agreed to submit to random drug/alcohol tests. Employees will be selected at
random and without prior notification for alcohol and drug testing. ~andom
drug/alcohol festing may occur not more than twice per employee per year.
Page 240f33
Section 5: The parties agree that an employee's refusal to submit to drug or
alcohol testing in accordance with the provision of this Article may result in
disciplinary action being taken against the employee up to and including
dismissal.
Section 6: At the conclusion of the drug and/or alcohol testing, the City
may take whatever action, if any, it deems appropriate. In the event that said
action is in the form of discipline, the employee may grieve said disciplinary
action through the contractual grievance/arbitration procedure.
Section 7: It is further understood and agreed that all issues pertaining to Drug and
Alcohol Testing shall be governed by City of South Miami Drug and Alcohol Free
Workplace Policy and Personnel Rules and Regulations set forth in the Employee
Policies and Procedures Manual.
ARTICLE 32 COURT TIME
Any employee who is subpoenaed to testify at a court trial in a matter
arising out of the performance of his/her official job duties, or who is required to
serve on a State of Florida or federal court jury, will be paid his/her straight time
rate for each scheduled work day lost, minus any compensation received from
the court or witness fees. Employees released by the court shall report back to
work, unless they are relieved within two (2) hours of the end of the employee's
shift. Upon return to work, employees shall furnish evidence of time release to the
Personnel Office.
ARTICLE 33 LAYOFF AND RECALL
Section 1: A layoff shall be deemed to have occurred when the City,.
within its sole discretion, announces that it is laying off employees for lack of work
or lack of allocated funds.
Section 2: The City agrees to notify the Union of the names of employees
being laid-off at the same time notice is' provided to the affected employees or
immediately thereafter.
Section 3: The City Manager or his deSignee shall deSignate the job
classifications in which the layoffs shall occur and the number of employees within
Page 250f33
each classification to be laid off. Employees covered under this Agreement shall
be laid off by job classification and, within each classification, by City
employment seniority. However, no regular full-time employee shall be separated
from his/her classification while there are emergency, provisional. probationary,
part-time, or temporary employees in the classification in whiCh the layoff(s) is
occurring.
Section 5: Any employee covered by this Agreement who is affected by
a layoff may be considered to displace any employee with less City employment
seniority in any lower rated classification covered by this Agreement. provided
that said employee is immediately qualified to perform the necessary services to
be performed in that lower rated classification. The City manager and/or the
Personnel Manager shall· determine lower rated classifications and whether the
affected employee is immediately qualified to perform the necessary services to
be performed in that lower rated classification. Such determinations shall be
made in the sole discretion of the City Manager and/or the Personnel Manager
and shall be final and binding. When an employee elects to "bump" into a lower
rated classification, said employee will be paid the rate of pay of that lower rated
classification.
Section 6: Employees who have been laid off will have the recall
rights to the position they were laid off or into a lower rated classification covered
by this Agreement, provided that the employee is immediately qualified to
perform the necessary services under the employee classification orJn the lower
rated classification for a period of time not to exceed twenty-four (24) months,
should the position become available. All employees who are recalled shall be
required to pass a physical examination and a drug test prior to being authorized
to return to work.
Employees on layoff shall be responsible to keep on file with the City
Manager's office the employee's current address. If an employee on layoff fails
to keep his/her current address on file as provided herein, the employee shall
forfeit all recall rights. Employees entitled to recall shall be notified of a vacancy
by certified mail not less than seven (7) calendar days prior to the date the
employee is to report to work. A copy of the recall notice shall be sent to the
Union. A recalled employee shall be considered to have voluntarily resigned if
he/she fails to accept employment within fourtee~ (14) calendar days after the
notification is mailed by the City or fails to report to work as instructed. Thereafter,
the provisions of this Agreement notwithstanding, the City will owe no further
obligation to the employee.
Page 26of33
Section 7: An employee on layoff status does not accrue seniority but
does retain his/her accumulated seniority until recall. If recalled, the employee
again begins to accrue seniority.
ARTICLE 34 REPRESENTATION DURING NEGOTIATIONS
. .
Section 1: The bargaining team for each party shall consist of not more
than four (4) persons. The Union will furnish the City with a written list of its
bargaining team prior to the first negotiation meeting.
Section 2: Prior to the first negotiation meeting. the Union shall designate
up to two (2) unit employees who will be paid their regular rate of pay for
attending negotiations during work hours. Such pay shall not exceed twenty (20)
hours in each fiscal year.
ARTICLE 35 EMERGENCIES
Section 1: The City Manager shall have the right. in his sole and exclusive
discretion, to determine if and to what extent an emergency situation exists with
respect to City property and/or to the citizens of the City. Immediately after
making such determination. the City Manager's office shall notify the Union of the
decision. and. to the extent possible, the length of time the emergency condition
is expected to continue.
Section 2: During the declared emergency, all provisions of this Agreement
may be suspenQed. Any provision so suspended will be reinstated upon order of
the City Manager after the emergency has ended.
Section 3: Disputes concerning the Agreement arising during the declared
emergency shall not be subject to the· grievance and arbitration procedure
except disputes concerning salary and wages.
ARTICLE 36 LABOR-MANAGEMENT COMMITIEE
There shall be a Labor-Management Committee consisting of· no more
than two management representatives designated by the City Manager and no
more than two bargaining unit employees appointed by the President of the
Page 27 of33
Union. The Labor-Management Committee shall meet as mutually agreed upon
by the participants.
The sole function of the Committee shall be to discuss general matters
pertaining to employee relations (e.g., safety issues). Thus, the parties agree that
the purpose of the Committee shall not be to discuss grievances or matters which
have been the subject of collective bargaining. Each bargaining unit Committee
member shall be paid his or her regular salary for attendance at Committee
meetings during the bargaining unit member's regular work hours not to exceed
two (2) hours.
ARTICLE 37 RETIREMENT BENEFITS
Section 1. All new employees who are hired by the City of South Miami on or
after October 1, 2011, will not be eligible to participate in the City's General
Employees Pension Plan. All new employees hired on or after October 1,2011 will
join the ICMA-RC defined contribution (DC) 457 plan.
Section 2: City employees are NOT required to contribute to the DC 457,
however the City will match the employee's percentage of contribution up-to a
maximum of Seven percent of base salary in an ICMA-RC 4010 plan. Employees
will be engible to change their respective ICM~-RC DC 457 contribution
percentage annually during the City's open enrollment process.
Section 3: All employees hired on or before September 30, 2011 will have a
one-time option to either remain in the City's General Employees 'Pension Plan or
elect to discontinue membership.
Section 4: For employees to choose to discontinue membership in the City's
General Employees Pension Plan, employees must provide in writing no later than
November 30, 2011 to the City's Human Resources Department, a letter stating
their choice to discontinue membership in the City's General Employees pension
plan. The letter must state the respective percentage the employee is wishing to
contribute towards the ICMA-RC 457 which shall be effective until September 30.
2012. The effective date of the change is on the first pay period in January 2012.
Section 5: Should an employee choose to discontinue membership in the
City's General Employees Pension Plan, the employee will be prC?vided the
contribution which they respectively contributed through their employment in the
Page2S of33
City's General Employees Pension Plan and may rollover such amount ·into the
newly established ICMA-RC 457 plan.
Section 6: Notwithstanding sections 1 through 5 above, any employee who is
participating in the ICMA-RC defined 'contribution (DC) 457 plan on the date the
2016 -2019 Agreement is ratified, and all employees hired on or after that date,
will be given a one-time, irrevocable election to participate in one of the
following retirement plan options:
option 1: New second tier of the City General Employees Pension Plan, which
shall contain the following provisions:
a.Full vesting upon completion of ten (10) years of credited service.
b.Future service benefit multiplier is 1.60%.
c.Final Average Compensation will be the average of the highest eight
(8) years of compensation.
d.Normal Retirement Date is 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.
e.The employee contribution win be three percent (3%) of
compensation.
f. No cost-of-living adjustments will be provided.
Option 2: Defined contribution plan with the following provisions:
a.Employees are required to contrib.ute· 3% of compensation.
b.City will contribute 7% of compensation.
c.Employees will be fully vested after one year of service.
Employees who are participating in the ICMA-RC defined contribution (DC) 457
plan on the date the 2016 -2019 Agreement is ratified, and would like to join the
new second tier plan, must make the irrevocable election within 90-days after the
Page 29 of33
adoption of the new pension ordinance creating the new second tier pension
plan.
The existing Defined Contribution Plan will not be offered to any new hires. and it
will be frozen for all persons who are presently in it and elect to join any of the
options of the second tier pension plan.
Section 7: Notwithstanding section 9(d) below. effective on the date 'the 2016
-2019 Agreement is ratified. the employee contribution for employees who are
participating in City General Employees Pension Plan on that date will be capped
at 10% of compensation. '
Section 8. For all AFSCME bargaining unit members who have become
employed since the date of the closing of the Plan. the following will apply. The
employees will be given an opportunity to buy-back any and all years of service.
up-to the number of years they have worked at the City at any time while
employed at the City in a position eligible for participation in the Plan. Employees
must pay the full actuarial cost of the service they buy back. and such buy-back
WIll be at the employees sale expense. as calculated by the Retirement Plan's
actuary.
data):
Section 9: The following changes in the pension are as follows (histOrical
a. Effective October 1. 1995. the benefit accrual rate (multiplier) shall be
. increased from 1.6 to 1.8 %.
b. Effective October 1. 1996. the benefit accrual rate (multiplier) shall be
increased from 1.8 to 2.0 % (histOrical data).
c. Effective October 1. 1997. the benefit accrual rate (multiplier) shall be
incre'ased from 2.0 to 2.25% (historical data).
d. Effective October 1. 1998. the benefit ac~rual rate (multiplier) shall be
increased from 2.25 to 2.5% (historical data).
e. Effective October 1. 1999. the benefit accrual rate (multiplier) shall be
increased from 2.5 to 2.75% (historical data).
f. Effective October 1. 2011. the benefit accrual rate (multiplier) shall be
reduced from 2.75% to 2.25%
Page 30 of33
Section 10: The following changes are applicable to all covered employees who
elect to continue in the General Employees' Pensions Plan(these changes have
already been implemented):
a. The definition of Final Monthly Compensation (FMC) is
changed for future benefit accruals to the average of
the final sixty (60) months of basic compensation but
not less than current Final Monthly Compensation as of
September 3D, 2011. ·Basic compensation excludes
commissions, overtime pay, bonuses and any other
forms of additional compensation outside of base
wages.
h. The current accrued benefits of General Employees are
frozen and payable under the current terms of the Plan
at the currently defin~d normal retirement date -the
later of attainment of age fifty-five (55) and completion
of ten (10) years of credited service. Existing
employees will continue to be eligible to retire at the
age of 55 and obtain their respective full pension
benefits accumulated up-to the date of the newly
approved pension Ordinance revising the normal
retirement age as set forth below. Future benefit
accruals. including increases due to increases in FMC.
will be payable at the proposed new normal retirement
date -the later of attainment of age sixty (60) and
completion of ten (10) years of credited service.
c. 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 in FMC. General employees will receive
the supplemental benefit on their current accrued
benefit.
Page 31 of33
d. Should the total contribution be actuarially determined
to exceed 14%, both the City and the employees will
share equally the excess amount (e.g., should the total
contribution be actuarially determined to be 16%, the
City shall contribute a total a 8.00% and.the employee~
shaJl contribute a total of 8%. For full text, please see
Ordinance 16-08-1951 titled Pension Plan.
ARTICLE 38 WORK IN HIGHER CLASSIFICATION
An employee who is authorized by the Department Head to temporarily
assume the duties of a higher pay status classification for three (3) or more
consecutive work days will receive a five percent (5%) increase of the base for
the actual time worked in the higher classification after the abov~referenced
three (3) consecutive work days.
ARTICLE 39 TERM OF AGREEMENT AND REOPENING
Section 1: This Agreement, having been ratified by the City Commission of
the City of South Miami and Local 3294, American Federation of state, County,
and Mu'nicipal Employees, AFL~CIO, shaJl be operative and effective as of its date
of execution, and shall continue until June 21,2019 ...
Section 2: Either party may require, by written notice to the other, between
April 1 st 2019 and not later than June pt 2019, discussions concerning
modifications of this Agreement on non-financial issues, one issue chosen by the
Union, and one issue chosen by the City. If neither party shall submit such written
notice during the indicated period, this Agreement shall automatically' be
renewed, in its entirety, for the following fiscal years thereafter.
THIS MENT signed this jqttday of JLJ/~ , 2016.
MIA~
...:::::;..----. L ---...... ~'-I q _I!'
By: -----,.,.:,L--------Date: _-"--/ __ ' __ ...o;/L.a:..-_
Page32of33
e, Es .
ttorney
At~n~ '/ By~ ~-:: \ I~.) ~~ Date: 7/ 19 110'
a_ . MiiliE!n , C1 Y Cl rk I I
American Federation of State, County a ' Municipal Employees.
AMERICAN FEDERATION OF STATE,
COUNTY AND MUNICIPAL EMPLOYE
LOCAL 3294
. By: __ ~~~~~~~~ ______ ~-,
De's ri Moses, AFSCME President
/J IJ I //~ yo'f W in BI:f.:~E In-House Counsel
Page 33 of33
Date: _____ _
SUNDAY JUln 2016
MlAMIHERAlP£OM NEIGHBORS I 29SE
CCITY OF SOUTH MIAMI
COURTESY NOTICE
AND MEETING DATE CHANGE
NOTICE IS HEREBY given tbat the City Commission of tbe City of
SOutll Miami. Florida wm conduct Public Hearing(s) at its regular City
Commission meeting schcduled for Tucsday. July 12, 2016, beginning
at 7:00 p.m .• in the City Commission Chambers, 6130 Sunset Drive,
t~ ':llnsidel' Ibe following item(s):
A Re!lOhltion approving IIUI aUlhorizing Ihe City Man'rer 10 exC(:1ltc t11e JunD
22, 21)1 (i to September 30. 201\1 A,recmcnt bCI\\t!CD tbe Amcrleun Federation
of State, County IlJId MunIcipal Employees (,'AFSCME"). Loc~1 3294 and the
City Of South Miami.
A Resolution RlrthotlZlIlt IIle City Manager to' negotiate and enter iull' an
agm:.ment with Brown &. Brown of Florm.~. Inc .. for illsurance brokerage
.cr\'icc~ for all initial terlll I'r threc (J) years .nd onc CI) I\\'\l-ycar nptinn tn
rmew for a total terln offive (5) con~cutlVe'ycar&. .
A Resolution IIltllorizinll the City Managr:r to enler into a three-year agreemenl
with FPL Fiherne110 mcrease eXisting intemet bBndwid\h capacity at City Hall.
A ltestllution aotharizinl.l1he City Manag:erta negl1tiate nnd enter inlO a contract.
for" tenn not to exccc:d five IS I consccutlve )/ClIrs. with CalVIn. G,ofllall(l &
Associates, Inc.' for tbe completion of the Comprehensive Plan anrl Land
Development Code revision.
A't Ordinance Amending tile Official Zonillg Map, lIS auth(lrized by Section
20-3.ICe). nod other applicable provisions. amending the designa1ioD of the
M:m<hull Williamson property locottcd ~outh of SW 64th T~rrdcc approximately
between SW 6OtbA~1mue and SW 61st Court, from Single-Family Residential
District RS4 til RT-9.
An OrdlhBncc Adopting 8 Small Scale AmeDdn~nt to the Fultn:e LIInd I.Is.
Mal' of Ihe (;ompreh~nsive Plan, amending the designalmn of tbe Marshall
WiIliam!llln property located IIOUth of SW 641h Terrace approximatcly
between SW 60th A,oenuc alld SW Gist Court. lhlm Single Family Reaid~lllial
(l\vo-Story) In Townhouse Residential (l\Yo-Slory).
NOnCE IS HEREBV also 1:i~'Cn Ihnt the re~'\Ilar meeting date ofl\Jesd.'I)I, Jl1ly S, 21llS
bas been chlnged to 1\aesday July 12.2016
ALL inlerested ponies are invi~ to attend and will be heard.
For fllrther jnformafion.I,lease contact the City Clerk"s Office al: lOS-66.1-6.~40.
Marin M. M~nende7, r.MC
CityCltrk
rUmlanl to Ftonda S.aNIt$ 2g6.UlOS. ,be Cit)! hrrrby pd,·i .... hr puhhc ,I"".f. IlCf$On d«id.,
In apptal any clecioinn mad. by .hi, Board Airney or C-.amllliK .. nn wnh te<p<ct 10 any In.lltl
CNIS;~t nl jIf meetiny nrbelltlllg. he Ilr 111& will nuda record "fth. prn< .. din~s. and 'hot for
.uch purJlo ... uffrClid ptnon may med In .n~11I'll tI .... VIlrlrathn TOCIlrd oftbe proc ... ding..,s DUlcie
which I.cord includca the lutinmny nd r\,id ..... upnn which tbe appenl "to he b.sed.
MIAMI-DADE coum HOMELESS TRUST REQUEST
FOR APPUCATIONS (RFA) FOR INCLUSION IN THE
2016 USHUO NOTICE OF FUNDING AVAILABIUn
(NOFA), CONTINUUM OF CARE PROGRAMS
Mia.mi-Dade County. Ihrough the Miami-Dade County Homeless Trust (Homeless Trust), is
requesting applicatiOns from homeless providers and other qualified entities Interested
. in applying for support services. IIoll&ing and other eligible activities benefiting !he
homeless. The projects being sought as part of litis solicitation are contingent on the
Homeless Trust being awarded 1IJtds through a Collaborative Application. Collaborative
Applications wiD be sUbmitted: to the UnHad States Department 01 Housing and Urban
Development,tUSHUD) In response to its Notice of Funding Availability (NOFA). Programs
currently funcled 1hrOugh the USHUD Homeless Continuum 01 Care programs wHh funding
expiring In 2017. projects seeking new bonus funding. anll providers Interested in serving
as the new project sponsor for the Partners for Homes pro!Jlilm awal'lled as part 01 the
2015 NOrA compeUilon must be a part of litis competHlve process for funding. Copies of
the Request for Applications package are available lor pick up beginning at 9:30 a.m.
June 27,2016 at:
Miami-Pade County Homeless Tnist
111 N.W, 1st SIrIfIt,27th Roor. Suite 310
Miami, florida 33128
(305) 375-1.490
A Pre-Application Workshop will be held on July 5.2016, beginning at 10:00 a.m. at
the Stephen P. Clark Center, 111 NW 151 Street, Miami. FL 33128. 18th lIoor. room 18-4.
AHandance at the Pre-Application Workshop Is·not requlrell but is strongly recommended.
We invite currenlly funded and new public and private homeless non-profil providers. and
government agencies, to review this RFA and IlIlPly to renew existing projeCts or submit
en application for a new project(s). A brief Toolmlcel Assistance session wOl be provided
for flew provider agencies at Ihe conclusion of the Pre-Appllcatlori Workshop. THIS RFA IS
SUBJECT TO THE CONE OF SILENCE, COUNTY ORDINANCE 98-106. In artier to maintain
a fair and Impartial competitive process, the County can only answer questions at the Pre-
Application Workshop and must avoid private communicalions with prospective appUcanls
during the application preparation and evaluation process. Please contact the Homeless
Trust if the Request for Application dOcuments are required in an alternative format or
language. The deadline for submission of applications il July 28, 2016. at 2:00 p.m.
All responses must be reeeired at the Cleric of the Board of Coun.,. Commissioners
on the1711t ODor of lite Stephen P. Clark Center, 111 N.W. 111 Street. Miami, FL 33128.
Miami·Dade County is not liable for any cost incurred by the IlIlplicant in responding to
Ihe Request lor Applications. and we reserve the right to modify or amend the IlIlplicallon
deadline schedule If It Is deemed necessary or in the Interest of Miami-Dede County.
Miami-Dade County also renrves Ihe right to accept or reject any and 1111 applicaflons. to
waive taclmlcanties or Irregularities. and to accept applications that are In the bast Interest
01 Miami-Dade County. Miami-Dade County provkles equal access and opportunity In
employment and services and does not discriminate on the besis of age. gender. race or
disabHIty. PLEASE NOTE: IF YOU ARE SEEKING AFFORDABLE HOUSING. PLEASE 60
TO: bua:llwwwdDiamidadB.qpvJbousinglaffonlabla=bgusino-resouRj8s.asp
For It g.'J lJds ollilne, [10 to hllp i/lt:y.ilJUS 1\11 'flll/lad( ,lJQJ
MIAMI DAILY BUSINESS REVIEW
Published Dally excepl Salurday. Sunday and
legal Holidays
Miami, Miami-Daile Counly, Florida
STATE OF FLORI'DA
COUNTY OF MIAMI·DADE:
Before the undersigned authonty personally appeared
MARIA MESA, who on oath says that he or she Is the LEGAL
CLERK, Legal Notices 01 the Miami Daily Business Review
flk/a Miami Review, a daily (except Saturday, Sunday and
Legal Holidays) newspaper, published at Miami in Miami-Dade
County, Florida; that the attached copy of advertisement,
being a Legal Advertisement ~f ~otice in the matter of
NOTICE OF PUBLIC HEARING
CllY OF SOUTH MIAMI-AND MEETING DATE CHANGE-
JULY12,2016
in the XXXX Court,
was published in said ne",!spaper in the is~ues of
07/01/2016
Affiant further says that the said Miami Daily Business
ReView is a newspaper published at Miami. in said
M!ami-Dade County, Florida and that the said newspaper has
heretofore been continuously pubhshed in, said Miami -Dade
County, Flonda each day (except !!atunday, Sunday and
Legal Holidays) and has been entered as second class mail
malter at the post office i" MI~mi in said Miami-Dade County,
Ftorida, for a period of one year nexl preceding tl'te first
publication of the attached. copy of advertisement; and affiant
further says that he or she has neither paid nor proniise~ any
person, linm or corporation any discount, rebate, commiSSIOn
01 refund' for the' this advertisement for
publication i
(SEAL)
MARIA MESA personally known to me
RHONDA M PELTIER
MY COMMISSION 1# fF231407
EXPI~r:$ MIIY 17 2019
t-"'II(J·"~O)::t·~s:·"h:4: .;c"tT
CITY OF SOUTH MIAMI
, NOTICE OF PUBLIC HEARING
AND MEETINO DATE CHANGE
NOTICE IS HEREBY given that the City Commission 01 the City of South
Miami, Florida will conduct Public Hearing(s),at its regular City Commission
meeting scheduled for Tuesday, July 12, 2016, beginning at 7;00, p.m., in
the City Commission Chl!mbers. 6~30 Sunset Drive, to consider the
following item{sl:
(
A Resolution approving and authorizing the 'City Manager to execu.te )
the June 22, 2016 to Septe!lll)er 30, 2019 Agreement between the
American Federatlciil 01 State, County and Municipal Employees
("AFSCME'I, local 3294 and the City Of South Miami. '
, .
A Resol~ion authOrizing the City Manager to negotiate and enter Into
an agreement with Brown & Brown of Florida, Inc., for Insurance
brokerage ~rvices for an.inltJal term of three (3) years.and one (ll,two-
yetU: option to renew for 8 total term of five (5) consecutive years, '
A F,lesolution authorizinQ Jhe City Manager to enter Into a three-year .
agreement with FPL ,Fibernet to increase existing internet bandwidth
,capacity at City Hal). . .
A Resolution authorizing the City Manager to negotiate and enter 'into
a contract, for a term ·not to exceed five· (5) consecutive years, with
Calvin, GIordano. & Aslioc,iates. Inc. for the completion of the
Compreh~sive Plap and Land Il.e:velopment COd~ revision.
'An Ordin~ 'Amending the Official Zoning Map, as authorized 'by
Section 2D-3:1(C), and other' applicable provisions, amending the
desjgnation 01 tha, Marshall Williart:lson property,located'south of,S\,{
64th ,rel'l'llce apRroximately, between SW 60th Avenue and f?W 61s1
Cout:', from Single-Fam,ily Residential District RS:4 to RT-9.
An Ordinanc~ Adopting a Small Scale Amendment to'the Future Land
Use Map of the Comprehensive Plan, amending the designation of the ,
Marshall Williamson property located south of SW 64th Terrace
approximately betWeen SW 60th Avenue and SW 61st 90urt, from
Single FjlmHy Residential (Two-StOIY) to Townhouse Residential (Two-StorY),
NOTICE IS HEREBY also giv!!n that the regular meeting date of TUesday,
July 5,2015 has bllen changed to Tuesday July 12. 2016
ALL Interested partieS are ihvited to attend and will be heard, , "
For further information, please contact the City Clerk's Office at :j!l5-663-6340,
Maria M. Menendez, CMC
'CltyClerk
, Pursuant to Florida Statutes 286.0105, the City hereby advises the public
that If a person decIdes to, appeal any decision made by this 808m,
Agen'cy or Commission' with 'respect to any matter considered at its
meeting or hearing, he or she will need a record of the proceedings. and
that for such purpose; affected .petsOn may need to ensure that a verbatim
reCord of the,Pl'Qc~dlngs Is ,rnadf;! which, record ,lriclUd,1I$ ,th!!"testl,mony
~d evidence upon which the appeal is to be based. '
711 16-1 06/00001 ?il017M
GRS
April 29, 2016
Gabriel Roeder Smith & Company
Consultants & Actuaries
Mr: Alfred Riverol
Finance Director
City Hall
6130 Sunset Drive
South Miami, Florida 33143,
Re: South Miami Pension Plan (City DB Plan)
One East Broward Blvd.
Suite 505
Ft. Lauderdale, FL 33301·1804
954.527.1616 phone
954.525.0083 fax
www.gabrielroeder.com
Updated Actuarial Projection Study as of October 1,2014 -Future Service
Retirement Benefits Based Upon New Tier of Benefits for Current DC Employees
Dear Alfred:
As requested, we are pleased to enclose our updated Actuarial Projection Study including thirty
(30) year projections for the City's proposed changes for general employees to provide future
service retirement benefits under a new tier of benefits as specified by the City under the City
DB Plan.
Financial and census data is reported as of October 1,2014.
Census data for regular part time staff is reported. We understand regular part time staff does
not currently participate in any City retirement plan. We further understand regular part time
would continue to not participate in the proposed retirement plan .
. If you should have any question concerning the above or if we may be of further assistance with
this matter, please do not hesitate to contact us.
Sincerest regards,
~.~.U~
Lawrence F. Wilson, A.S.A.
Senior Consultant and Actuary
Enclosures
Kelly 1. Adams, A.S.A.
Consultant and Actuary
GRS
SOUTH MIAMI PENSION PLAN
UPDATED ACTUARIAL PROJECTION STUDY
April 29, 2016
Gabriel Roeder Smith & Company
Consultants & Actuaries
Gabriel Roeder Smith & Company
SOUTH MIAMI PENSION PLAN
ACTUARIAL PROJECTION STUDY AS OF OCTOBER 1, 2014
TABLE OF CONTENTS I
I. Executive Summary .................................................................................................... l
II. Projection Results ....................................................................................................... 8
III. Outline of Principal Provisions of the South Miami Pension Plan .......................... 15
IV. Actuarial Assumptions and Cost Methods ................................................................ 20
Gabriel Roeder Smith & Company
SOUTH MIAMI PENSION PLAN
ACTUARIAL PROJECTION STUDY AS OF OCTOBER 1, 2014
EXECUTIVE SUMMARY I
At the request of the City, we have completed thirty (30) year projections illustrating the
financial impact of City proposed changes to the South Miami Pension Plan (City DB Plan) and
the City of South Miami Defined Contribution Plans (City DGPlans);------------------
Background -The City DB Plan currently allows participation by full-time General Employees
hired before October 1, 2011 and requires participation of all full-time Police Officers of the City
-excluding Police Chief. I
The City DB Plan currently provides:
~ Normal Retirement is attained age of 55 and completion of ten (10) years of credited
service (attained age 60 and completion often (10) years of credited service for benefits
earned after September 30,2011) for General Employees.
~ Future service benefit multiplier is 2.25% for General Employees.
~ Full vesting upon completion often (10) years of credited service.
~ Final Average Compensation is the 1I60th of the fmal 60 consecutive months of basic
compensation but not less than 1I36th of the final 36 consecutive months of
compensation as of September 30,2011 for General Employees.
~ . General Employees contribute 7.0% of pay. City contributions greater than the general
employee contributions are split evenly between the City and general employees -City
pays administrative expenses.
~ 3% cost-of-living increase (subject to consumer price index) to qualifying retires (limited
to benefits earned prior to October 1,2011 for General Employees).
The City offers Defined Contribution Plans (City DC Plans) qualified under IRC Section 401(a)
for General Employees hired on or after October 1, 2011 and for other select City Employees
with a 100% match-up to 7% of pay.
Proposed Changes -We understand the City wishes to determine the projected effect on future
City contributions if the City DB Plan is re-opened to General Employees hired on or after
October 1, 2011 under a new tier of benefits. Additionally a new defined benefit pension plan
will be established for the Administration Management Service Class (AMSC).
GRS Gabriel Roeder Smith & Company -1 -
SOUTH MIAMI PENSION PLAN
ACTUARIAL PROJECTION STUDY AS OF OCTOBER 1, 2014
The City provided the group of employees who may comprise the AMSC as follows:
City Manager
City Clerk
Assistant City Manager
Finance and Administration Director, C.F.O.
Police Chief
Planning Director
Building Director
Public Works Director
-. Chief Administrative Officer (currently Finance Office Manager)
Chief Procurement Officer (currently Purchasing Manager)
Personnel Manager
Parks and Recreation Director
The proposed retirement programs will provide:
GRS
General Employees electing the new tier in the City DB Plan will receive the
following:
o Full vesting upon completion of ten (10) years of credited service.
o Future service benefit multiplier is 1.60%.
o Final Average Compensation will be the average of the highest eight (8) years of
compensation.
o Normal Retirement is the earlier of (a) attained age 65 and completion often (10)
years of credited service or (b) completion of thirty-three (33) years of credited
servIce.
o General Employees entering the City DB Plan will contribute three percent (3%)
of compensation (current General Employees in the City DB Plan not electing the
new tier of benefits will have their contributions capped at ten percent (10%) of
compensation).
o No cost-of-living adjustments will be provided.
General Employees currently in the City DB plan will have the option to freeze their
current benefits and receive benefits under the new tier.
AMSC employees will receive the following benefits:
o Participants currently employed by the City will be vested upon completion of
three (3) years of service as of the date of adoption.
o Future AMSC participants will be vested upon completion of three (3) years of
servIce.
o Benefit multiplier is 3.00%.
o Final Average Compensation will be the average of the highest eight (8) years of
compensation.
Gabriel Roeder Smith & Company -2 -
SOUTH MIAMI PENSION PLAN
ACTUARIAL PROJECTION STUDY AS OF OCTOBER 1, 2014
o Normal Retirement is the earlier of (a) attained age 65 and completion of three
(3) years of credited service or (b) completion of thirty-three (33) years of
credited service.
o AMSC employees will be required to contribute seven percent (7%) of
compensation.
o AMSC employees who will receive the above benefits and who are currently
participating in the City DB Plan will have their City DB Plan benefits frozen as
of the date of adoption.
Additionally an Alternative Defined Contribution Plan (Alternative DC Plan) will be
offered to all General Employees with the following provisions:
o Employees are required to contribute three percent (3%) of compensation.
o City will contribute seven percent (7%) of compensation.
o Employees will be vested after one (1) year of service.
Results -The following Tables shows the current City / Employee contribution (cost) and the
sum of the projected City / Employee contributions (costs) over the next five (5), ten (10) and
thirty (30) years for the baseline (City DB Plan and City DC Plans) and for the proposed changes
described above as a dollar amount and as a percentage of projected covered payroll,
respectively.
GRS Gabriel Roeder Smith & Company -3 -
SOUTH MIAMI PENSION PLAN
ACTUARIAL PROJECTION STUDY AS OF OCTOBER 1, 2014
ext Year
-Department Payroll $4,145 $4,249 N/A
-Net City Cost $ $245 $198 ($47)
-Net City Cost % 5.9% 4.7% (1.2%)
-Net Employee Cost $ $255 $246 ($9)
Cost % 6.2% 5.8%
ext 5 Years
-Department Payroll $21,549 $22,509 N/A
-Net City Cost $ $1,413 $1,066 ($347)
-Net City Cost % 6.6% 4.7% (1.9%)
-Net Employee Cost $ $1,358 $1,239 ($119)
Cost % 6.3% 5.5%
ext 10 Years
-Department Payroll $47,131 $49,804 N/A
-Net City Cost $ $3,162 $2,410 ($752)
-Net City Cost % 6.7% 4.8% (1.9%)
-Net Employee Cost $ $3,045 $2,604 ($441)
Cost % 6.5% 5.2%
ext 30 Years
-Department Payroll $207,313 $221,968 N/A
-Net City Cost $ $14,898 $11,263 ($3,635)
-Net City Cost % 7.2% 5.1% (2.1%)
-Net Employee Cost $ $14,051 $10,167 ($3,884)
-Net Cost % 6.8% 4.6%
GRS Gabriel Roeder Smith &: Company -4 -
SOUTH MIAMI PENSION PLAN
ACTUARIAL PROJECTION STUDY AS OF OCTOBER 1, 2014
Actuarial Assumptions and Methods, City DB Plan Provisions, Financial Data and Member
Census Data -The actuarial assumptions and methods, City DB Plan provisions (as modified
above), financial data and member census data employed for purposes of our Actuarial
Projection Study are the same actuarial assumptions and methods, City DB Plan provisions (as
modified above), fmancial data and member census data utilized for the October 1, 2014
Actuarial Valuation with the following projection modifications.
GRS
• Two-thirds of current employees in the City DC plans along with two-thirds of future
General Employees are assumed to enroll in the new tier of benefits for General
Employees (assumption provided by City).
• The remaining one-third of current employees in the City DC plans along with one-third
of future General Employees are assumed to enroll in the Alternative DC Plan
(assumption provided by City).
• All AMSC employees are assumed to enroll in the proposed City AMSC Defined Benefit
Plan.
• Demographic data for twelve AMSC employees was reported by the City.
• All current General Employees participating in the City DB Plan are assumed to continue
to participate in the current City DB Plan (assumption provided by City).
• No future City contributions are assumed to be made to the current City DC Plans for all
General Employees.
• Under the proposed structure, the City DB Plan future amortization period for the change
in unfunded liability is twenty-five (25) years.
• A payroll growth assumption of 3 .25% is used for determining the amortization payments
under the re-opened plan for General Employees.
• New AMSC defined benefit plan will use the same actuarial methods and assumptions as
the City DB Plan for General Employees.
• Under the current City Senior Management DC Plan, participants are eligible for normal
retirement at age 45. For all others in the City DC Plans, participants are eligible for
normal retirement at age 60.
• Demographic assumptions of the City DB Plan for General Employees are assumed to
apply to the Alternative DC Plan including the retirement age of the earlier of (a) attained
65 or (b) completion of 33 years of service.
• No upfront contribution to fund additional liabilities under the proposed tier of benefits or
the proposed ASMC Plan is assumed.
• Throughout the forecast period new employees are assumed to be hired each year at a
rate sufficient to maintain a constant active headcount -stationary population. New
Gabriel Roeder Smith & Company -5 -
SOUTH MIAMI PENSION PLAN
ACTUARIAL PROJECTION STUDY AS OF OCTOBER 1, 2014
employees are assumed to have the same average demographic characteristics (age,
gender, salary -adjusted each year for inflation) and group (General Employee or
AMSC) as those employees hired over the past five (5) years.
• Under the City DB Plan, expenses paid by the City are assumed to be 0.3% of the
projected market value of assets during the projection period.
• Effective October 1, 2016, the rates of mortality in the projections are the rates of
mortality used by the Florida Retirement System (FRS) in the July 1, 2014 and July 1,
2015 FRS Actuarial Valuations.
Projections are deterministic -throughout the projection period experience is expected to match
the assumptions -including a 7.375% annual market value investment return for fiscal year
ended September 30,2015 and thereafter.
This Actuarial Projection Study is intended to describe the estimated future financial effects of
the proposed benefit changes and is not intended as a recommendation in favor of the change nor
in opposition to the change.
These calculations are based upon assumptions regarding future events. However, the City DB
Plan and AMSC Plan long term costs will be determined by actual future events, which may
differ materially from the assumptions made.
If you have reason to believe the assumptions used are unreasonable, the City DB Plan
provisions are incorrectly described or referenced, important City DB Plan provisions relevant to
this Actuarial Projection Study are not described or that conditions have changed since the
calculations were made, you should contact the undersigned prior to relying on information in
this Actuarial Projection Study. If you have reason to believe that the information provided in
this Actuarial Projection Study is inaccurate, or is in any way incomplete, or if you need further
information in order to make an informed decision on the subject matter of this report, please
contact the undersigned prior to making such decision.
The Unfunded Actuarial Accrued Liability (UAAL) may not be appropriate for assessing the
sufficiency of Plan assets to meet the estimated cost of settling benefit obligations but may be
appropriate for assessing the need for or the amount of future contributions. The U AAL would
be different if it reflected the market value of assets rather than the actuarial value of assets.
Future actuarial measurements may differ significantly from the current measurements presented
in this report due to such factors as the following: City DB Plan experience differing from that
anticipated by the economic or demographic assumptions; changes in economic or demographic
assumptions; increases or decreases expected as part of the natural operation of the methodology
used for the&e measurements (such as the end of an amortization period or additional cost or
contribution requirements based on the City DB Plan's funded status); and changes in City DB
Plan provisions or applicable law. Due to the limited scope of the actuary's assignment, the
actuary did not perform an analysis of the potential range of such future measurements.
GRS Gabriel Roeder Smith & Company -6-
SOUTH MIAMI PENSION PLAN
ACTUARIAL PROJECTION STUDY AS OF OCTOBER 1, 2014
This report should not be relied on for any purpose other than the purpose described in the
primary communication. Determinations of the financial results associated with the benefits
described in this report in a manner other than the intended purpose may produce significantly
different results.
This report has been prepared by actuaries who have substantial experience valuing public
employee retirement systems. To the best of our knowledge the information contained in this
report is accurate and fairly presents the actuarial position of the South Miami Pension Plan as of
the valuation date. All calculations have been made in conformity with generally accepted
actuarial principles and practices, with the Actuarial Standards of Practice issued by the
Actuarial Standards Board and with applicable statutes.
The signing actuaries are independent of the Plan sponsor.
The undersigned are Members of the American Academy of Actuaries and meet the
Qualification Standards of the American Academy of Actuaries to render the actuarial opinion
contained herein.
If you should have any question concerning the above or if we may be of further assistance with
this matter, please do not hesitate to contact us.
Sincerest regards,
~.~-.~~
Lawrence F. Wilson, A.S.A
Senior Consultant and Actuary
Enclosures
GRS Gabriel Roeder Smith & Company
Kelly L. Adams, AS.A
Consultant and Actuary
-7 -
SOUTH MIAMI PENSION PLAN
ACTUARIAL PROJECTION STUDY AS OF OCTOBER 1, 2014
PROJECTION RESULTS I
General Employee-Re-open the City DB Plan to General Employees hired on or after October
1, 2011 with a new tier of benefits for General Employees. Create a defined benefit plan for
AMSC employees. Create an Alternative DC plan.
The following Tables show projected covered payroll, comparison of projected City and
Employee (EE) costs and Unfunded Actuarial Accrued Liability (UAAL) under the baseline
forecast versus providing benefit accruals similar to FRS -($1 ,ODDs). UAAL shown is for the
Valuation Date two years prior to fiscal year end.
Fiscal Department Current Plans Current Department Proposed Plans (Increase) / Cumulative
Year Covered Projected Ci~ Cost Plan Covered Projected Ci~ Cost Reduction in (Inc) / Red in
End Payroll Dollar % of Pay VAAL Payroll Dollar % of Pay VAAL Ci!v Cost Ci!v Cost
2016 4,145 245 5.9% (F5) 4,249 198 4.7% 176 47 47
2017 4,127 278 6.7% (762) 4,273 219 5.3% (125) 59 106
2018 4,263 285 6.7% (955) 4,474 211 4.9% (339) 74 180
2019 4,424 296 6.7% (1,347) 4,663 214 4.8% (750) 82 262
2020 4,590 309 6.7% (1,547) 4,850 224 4.9% (956) 85 347
2021 4,748 318 6.7% (1,669) 5,051 245 5.2% (1,091) 73 420
2022 4,932 334 6.8% (1,803) 5,251 257 5.2% (1,227) 77 497
2023 5,111 350 6.8% (1,945) 5,466 259 5.1% (1,387) 91 588
2024 5,301 366 6.9% (2,099) 5,679 289 5.5% (1,591) 77 665
2025 5,490 381 6.9% (2,264) 5,848 294 5.4% (1,790) 87 752
2026 5,685 398 7.0% (2,442) 6,062 312 5.5% (2,060) 86 838
2027 5,881 415 7.1% (2,632) 6,280 328 5.6% (2,354) 87 925
2028 6,081 432 7.1% (2,835) 6,504 334 5.5% (2,682) 98 1,023
2029 6,294 449 7.1% (3,056) 6,748 351 5.6% (3,061) 98 1,121
2030 6,511 467 7.2% (3,293) 6,991 367 5.6% (3,460) 100 1,221
2031 6,735 486 7.2% (3,545) 7,242 381 5.7% (3,915) 105 1,326
2032 6,960 504 7.2% (3,815) 7,477 387 5.6% (4,428) 117 1,443
2033 7,199 524 7.3% (4,106) 7,741 403 5.6% (5,033) 121 1,564
2034 7,451 543 7.3% (4,418) 8,006 416 5.6% (5,718) 127 1,691
2035 7,715 564 7.3% (4,752) 8,294 429 5.6% (6,501) 135 1,826
2036 7,986 586 7.3% (5,111) 8,596 445 5.6% (7,383) 141 1,967
2037 8,269 609 7.4% (5,495) 8,905 462 5.6% (8,360) 147 2,114
2038 8,555 632 7.4% (5,907) 9,222 477 5.6% (9,444) 155 2,269
2039 8,857 656 7.4% (6,351) 9,551 489 5.5% (10,643) 167 2,436
2040 9,169 680 7.4% (6,826) 9,887 507 5.5% (11,973) 173 2,609
2041 9,489 705 7.4% (7,336) 10,226 522 5.5% (13,457) 183 2,792
2042 9,819 731 7.4% (7,884) 10,562 535 5.4% (15,132) 196 2,988
2043 10,154 758 7.5% (8,473) 10,918 553 5.4% (16,990) .205 3,193
2044 10,507 785 7.5% (9,105) .11,288 570 5.4% (19,013) 215 3,408
2045 10,865 812 7.5% (9,783) 11,664 585 5.4% (21,218) 227 3,635
5 Year
Totals 21,549 1,413 6.6% (1,547) 22,509 1,066 4.7% (956) 347 1.9%
10 Year
Totals 47,131 3,162 6.7% (2,264) 49,804 2,410 4.8% (1,790) 752 1.9%
30 Year
Totals 207,313 14,898 7.2% (9,783) 221,968 11,263 5.1% (21,218) 3,635 2.1%
GRS Gabriel Roeder Smith & Company -8 -
SOUTH MIAMI PENSION PLAN
ACTUARIAL PROJECTION STUDY AS OF OCTOBER 1, 2014
Fiscal Projected EE Cost Department Projected EE Cost (Increase) / Cumulative
Year Department Current Plans Covered Scenario 1 Reduction in (Inc) / Red in
End Payroll Dollar % of Pay Payroll Dollar % of Pay EE Cost EECost
2016 4,145 255 6.2% 4,249 246 5.8% 9 9
2017 4,127 257 6.2% 4,273 240 5.6% 17 26
2018 4,263 269 6.3% 4,474 246 5.5% 23 49
2019 4,424 282 6.4% 4,663 251 5.4% 31 80
2020 4,590 295 6.4% 4,850 256 5.3% 39 119
2021 4,748 310 6.5% 5,051 261 5.2% 49 168
2022 4,932 324 6.6% 5,251 267 5.1% 57 225
2023 5,111 337 6.6% 5,466 274 5.0% 63 288
2024 5,301 351 6.6% 5,679 280 4.9% 71 359
2025 5,490 365 6.6% 5,848 283 4.8% 82 441
2026 5,685 379 6.7% 6,062 290 4.8% 89 530
2027 5,881 394 6.7% 6,280 296 4.7% 98 628
2028 6,081 410 6.7% 6,504 303 4.7% 107 735
2029 6,294 425 6.8% 6,748 311 4.6% 114 849
2030 6,511 441 6.8% 6,991 319 4.6% 122 971
2031 6,735 458 6.8% 7,242 328 4.5% 130 1,101
2032 6,960 475 6.8% 7,477 336 4.5% 139 1,240
2033 7,199 492 6.8% 7,741 345 4.5% 147 1,387
2034 7,451 511 6.9% 8,006 354 4.4% 157 1,544
2035 7,715 530 6.9% 8,294 364 4.4% 166 1,710
2036 7,986 550 6.9% 8,596 375 4.4% 175 1,885
2037 8,269 570 6.9% 8,905 387 4.3% 183 2,068
2038 8,555 591 6.9% 9,222 399 4.3% 192 2,260
2039 8,857 612 6.9% 9,551 411 4.3% 201 2,461
2040 9,169 635 6.9% 9,887 424 4.3% 211 2,672
2041 9,489 658 6.9% 10,226 437 4.3% 221 2,893
2042 9,819 681 6.9% 10,562 450 4.3% 231 3,124
2043 10,154 706 7.0% 10,918 463 4.2% 243 3,367
2044 10,507 731 7.0% 11,288 478 4.2% 253 3,620
2045 10,865 757 7.0% 11,664 493 4.2% 264 3,884
5 Year
Totals 21,549 1,358 6.3% 22,509 1,239 5.5% 119 0.8%
10 Year
Totals 47,131 3,045 6.5% 49,804 2,604 5.2% 441 1.3%
30 Year
Totals 207,313 14,051 6.8% 221,968 10,167 4.6% 3,884 2.2%
GRS Gabriel Roeder Smith & Company -9-
SOUTH MIAMI PENSION PLAN
ACTUARIAL PROJECTION STUDY AS OF OCTOBER 1, 2014
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GRS Gabriel Roeder Smith & Company -10-
SOUTH MIAMI PENSION PLAN
ACTUARIAL PROJECTION STUDY AS OF OCTOBER 1, 2014
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GRS Gabriel Roeder Smith & Company -11 -
SOUTH MIAMI PENSION PLAN
ACTUARIAL PROJECTION STUDY AS OF OCTOBER 1, 2014
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GRS Gabriel Roeder Smith & Company -12 -
SOUTH MIAMI PENSION PLAN
ACTUARIAL PROJECTION STUDY AS OF OCTOBER 1, 2014
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GRS Gabriel Roeder Smith & Company -13 -
SOUTH MIAMI PENSION PLAN
ACTUARIAL PROJECTION STUDY AS OF OCTOBER 1, 2014
The following table shows a summary of the reduction in City and Employee Costs.
Summary of Reduction / (Increase) in Costs -
Fiscal ($l,OOOs)
Year City Employee
End
2016 47 9
2017 59 17
2018 74 23
2019 82 31
2020 85 39
2021 73 49
2022 77 57
2023 91 63
2024 77 71
2025 87 82
2026 86 89
2027 87 98
2028 98 107
2029 98 114
2030 100 122
2031 105 130
2032 117 139
2033 121 147
2034 127 157
2035 135 166
2036 141 175
2037 147 183
2038 155 192
2039 167 201
2040 173 211
2041 183 221
2042 196 231
2043 205 243
2044 215 253
2045 227 264
5 Year Savings ($) 347 119
5 Yr Average 69 24
30 Year Savings ($) 3,635 3,884
30 Y r Average 121 129
GRS Gabriel Roeder Smith & Company -14 -
SOUTH MIAMI PENSION PLAN
. ACTUARIAL PROJECTION STUDY AS OF OCTOBER 1, 2014
OUTLINE OF PRINCIPAL PROVISIONS OF THE RETIREMENT PLAN PRIOR TO
ANY PROPOSED CHANGES INCLUDED IN THIS STUDY
A. Effective Date:
October 1, 1965. Most recently amended by Ordinance 06-14-2184 adopted April 15, 2014.
B. Eligibility Requirements:
1. General Employees
Any regular full-time employee hired before October 1, 2011 is eligible to enter the plan
following the completion of six months of Credited Service and attainment of age 20.
2. Police Officers
Any regular full-time Police Officer is eligible to enter the plan as of date of employment.
C. Credited Service:
GRS
1. General Employees
Continuous employment. Credited service shall exclude continuous employment prior to
plan participation as follows: (1) If employed prior to October 1, 1973, credited service
shall exclude the first two years of continuous employment and any additional year of
continuous employment prior to attainment of age 25. (2) If employed on or after October
1, 1973, credited service shall exclude the first six (6) months of continuous employment
and continuous employment prior to age 20.
2. Police Officers
Continuous employment. For Police Officers who did not participate when first eligible
for the plan, credited service shall exclude continuous employment prior to plan
participation as follows: (1) If employed prior to October 1, 1973, credited service shall
exclude the first two years of continuous employment and any additional year of
continuous employment prior to attainment of age 25. (2) If employed on or after October
1, 1973, credited service shall exclude the first six (6) months of continuous employment
and continuous employment prior to age 20.
Gabriel Roeder Smith & Company -15 -
SOUTH MIAMI PENSION PLAN
ACTUARIAL PROJECTION STUDY AS OF OCTOBER 1, 2014
D. Final Monthly Compensation (FMC):
Final Monthly Compensation is 1/36th of the final 36 consecutive months of compensation.
For Police Officers, not less than l/5th of the highest five (5) years out of the last (10) ten
years of compensation. Compensation shall mean regular wages and salaries, excluding
bonuses, vacation, sick leave and other additional compensation.
Effective October 1, 2011, Final Average Compensation for General Employees is 1/60th of
the final 60 consecutive months of basic compensation, provided it is not less than the Final
Average Compensation as of September 30, 2011 based on the definition above. Basic
compensation shall mean base wages and salaries, excluding commissions, overtime pay,
bonuses and any other forms of additional compensation earned outside of base wages.
Effective October 1, 2011, Final Average Compensation for members covered under the
Police Officers and Sergeants collective bargaining agreement is the best five (5) years of
basic compensation, provided it is not less than the Final Average Compensation as of
September 30, 2011 based on the definition above. Basic compensation shall mean base
wages and salaries, including up to 300 hours of overtime in a fiscal year and excluding
payments for accrued unused sick or annual leave, extra duty or special detail work, shift
differential, assignment pay, bonuses and any other forms of additional compensation earned
outside of base wages.
E. Normal Retirement:
GRS
1. Eligibilitv:
a. General Employees: Attainment of age 55 and completion of ten (10) years of
b. Police Officers:
2. Benefit:
credited service for benefits accrued as of September 30,
2011.
Attainment of age 60 and completion of ten (10) years of
credited service for benefits accrued after September 30,
2011, including increases in the accrued benefit as of
September 30, 2011 due to increases in the Final Average
Compensation.
Attainment of age 60 and completion of ten (10) years of
credited service of completion of twenty-five (25) years of
credited service regardless of age.
The monthly plan benefit is the product of:
a. FMC,
b. Credited service during the appropriate period and
c. The appropriate benefit percentage
Gabriel Roeder Smith & Company -16 -
SOUTH MIAMI PENSION PLAN
ACTUARIAL PROJECTION STUDY AS OF OCTOBER 1, 2014
E. Normal Retirement (cont'd):
The appropriate benefit percentages are:
a. General Employees
b. Police Officers
For Credited Service
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, 1995 through September 30, 1996
October 1, 1996 through September 30, 1997
October 1, 1997 through September 30, 2001
October 1,2001 through September 30, 2002
October 1, 2002 through September 30, 2003
October 1, 2003 and thereafter
Percentage
2.50%
2.75%
2.25%
Percentage
2.00%
2.25%
2.50%
2.75%
2.80%
2.90%
3.00%
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 on the
accrued benefit as of September 30, 2011 and does not apply to increases in this accrued
benefit due to increases in the Final Average Compensation.
G. Early Retirement:
1.
2.
Eligibility:
Benefit:
Attainment of age 50 and completion of 15 years of credited service
for Police Officers.
Accrued benefit based upon FMC and credited service as of early
retirement date, reduced 3% for Police Officers for each year that the
benefit commencements date precedes Normal Retirement.
H. Delayed Retirement:
1.
2.
GRS
Eligibility:
Benefit:
Retirement subsequent to normal retirement date.
Accrued benefit based upon FMC and credited service as of delayed
retirement date.
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SOUTH MIAMI PENSION PLAN
ACTUARIAL PROJECTION STUDY AS OF OCTOBER 1, 2014
I. Disability Retirement:
1. Eligibility: Totally and permanently disabled for a SIX month period while
actively employed.
2. Benefit: Accrued benefit based upon FMC and credited service as of date of
disability, actuarially reduced as for early retirement for early
commencement.
J. Pre-Retirement Death Benefit:
The beneficiary shall receive the member's accumulated employee contributions.
K. Benefit Upon Termination of Service:
1. Benefit payable at normal retirement equal to the greater of:
a. Accrued benefit based upon FMC and credited service as of date of termination
times the vesting percentage shown below, or
b. Benefit which can be supported by the accumulated member contributions with
interest to normal retirement date.
No Supplemental benefit shall be payable to vested terminees.
2. Vesting Schedule:
Years of Credited Service
3. Refund Options:
Less than 10
10 or more years
Vesting Percentage
0%
100%
A terminated member may elect to receive a refund of accumulated contributions without
interest in lieu of receiving any other plan benefits.
L. Member Contributions:
GRS
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, both the City and the General Employees will share
equally in the amount in excess of 7.0%.
Gabriel Roeder Smith & Company -18 -
SOUTH MIAMI PENSION PLAN
ACTUARIAL PROJECTION STUDY AS OF OCTOBER 1, 2014
Should the City contribution for Police Officers be actuarially determined to exceed 7.5%,
not including expenses, both the City and the Police Officers will share equally in the amount
in excess of 7.5%.
M. Normal Form of Retirement Income:
GRS
The normal form of payment shall be a life annuity with a guarantee of a refund of
accumulated employee contributions.
Gabriel Roeder Smith & Company -19-
SOUTH MIAMI PENSION PLAN
ACTUARIAL PROJECTION STUDY AS OF OCTOBER 1, 2014
ACTUARIAL ASSUMPTIONS AND METHODS I
A. Mortality
GRS
For October 1, 2014 and 2015 the following rates of mortality were utilized:
For healthy lieneral Employee participants, RP-2000 Mortality Tables, separate rates for
males and females and for annuitants and non-annuitants, with fully generational
mortality improvements projected to each future decrement date with Scale AA.
For healthy Police Officer participants, RP-2000 Combined Healthy Participant Mortality
Tables, separate rates for males and females, with Blue Collar Adjustment and fully
generational mortality improvements projected to each future decrement date with Scale
AA.
For disabled participants, RP-2000 Disabled Mortality Tables, separate rates for males
and females, with fully generational mortality improvements projected to each future
decrement date with Scale AA.
For October 1, 2016 and thereafter the following rates of mortality were utilized:
For healthy General Employee male participants, 50% of the RP-2000 Annuitant
Mortality Table with White Collar Adjustment -50% of the RP-2000 Annuitant Mortality
Table with Blue Collar Adjustment, with fully generational mortality improvements
projected to each future decrement date with Scale BB.
For healthy Police Officer male participants, 10% of the RP-2000 Annuitant Mortality
Table with White Collar Adjustment -90% of the RP-2000 Annuitant Mortality Table
with Blue Collar Adjustment, with fully generational mortality improvements projected
to each future decrement date with Scale BB.
For healthy General Employee and Police Officer female participants, 100% of the RP-
2000 Annuitant Mortality Table with White Collar Adjustment, with fully generational
mortality improvements projected to each future decrement date with Scale BB.
For disabled General Employee participants, 100% of the RP-2000 Disabled Mortality
Table with separate rates for males set back four (4) years and females set forward two
(2) years, and no future mortality improvement.
For disabled Police Officer participants, 60% of the RP-2000 Disabled Mortality Table
with separate rates for males set back four (4) years and females set forward two (2) years
-40% of the RP-2000 Annuitant Mortality Table with White Collar Adjustment, and no
future mortality improvement.
These are the rates of mortality used in the July 1, 2014 FRS Actuarial Valuation.
Gabriel Roeder Smith & Company -20-
SOUTH MIAMI PENSION PLAN
ACTUARIAL PROJECTION STUDY AS OF OCTOBER 1, 2014
B. Investment Return to be Earned by Fund
7.375%, compounded annually.
C. Allowances for Expenses or Contingencies
Actual expenses paid in previous year.
D. Employee Withdrawal Rates
Withdrawal rates for males and for females were used in accordance with the following
illustrative example based upon number of years of service:
Service
1-2
3-6
7-10
11 & Over
12.00
8.00
8.00
3.50
Withdrawal Rates
Per 100 Employees
General
20.00
9.25
5.00
5.00
E. Disability Rates
1985 Disability Study, Class 1 with separate rates for females was used.
F. Martial Assumptions .
100% of active members are assumed to be married. Where applicable, females are assumed
to be three years younger than their male spouses.
G. Salary Increase Factors
GRS
Current salary is assumed to increase in accordance with the following table based upon
number of years of service.
Service Police General
0-9 5.25% 5.25%
10-14 3.75% 4.75%
15 -19 3.75% 4.25%
20 & over 3.75% 3.75%
Gabriel Roeder Smith & Company -21 -
SOUTH MIAMI PENSION PLAN
ACTUARIAL PROJECTION STUDY AS OF OCTOBER 1, 2014
H. Increase in Covered Payroll
4.0% per year, limited to average annual increase over most recent ten years (0.9%) but not
less than 0.0% for Police Officers. No increase in covered payroll is assumed for General
Employees -Plan was closed to newly hired General Employees October 1, 2011.
I. Retirement Rates
Rates of early retirement for Police Officers were used in accordance with the following
table.
Years Preceding
Normal Retirement
1-6
7-10
Police
5%
10%
Rates of normal retirement were used in accordance with the following tables.
Age Police General
55 -59 N/A 10%
60-61 25% 10%
62-64 40% 25%
65 -66 100% 25%
67 & above 100% 100%
Date of Hire Service Police
Prior to October 1, 2014 25 Years 100%
On or after October 1,2014 30 Years 100%
General Employees who retire prior to age sixty (60) but after attainment often (10) years of
service (55 & 10) are assumed to receive an actuarially reduced benefit payable immediately
upon retirement.
I. Cost of Living Increases
Future cost of living increases are assumed to be 3.0% per annum.
J. Valuation of Assets
GRS
The method used for determining the actuarial value of assets phases in the deviation
between the expected and actual return on assets at the rate of 20% per year. The actuarial
value of assets will be further adjusted to the extent necessary to fall within the corridor
whose lower limit is 80% of the fair market value of plan assets and whose upper limit is
120% of the fair market value of plan assets.
Gabriel Roeder Smith & Company -22-
SOUTH MIAMI PENSION PLAN
ACTUARIAL PROJECTION STUDY AS OF OCTOBER 1, 2014
K. Cost Methods
GRS
Normal Retirement. Termination, Disability and Pre-Retirement Death Benefit:
Entry-Age-Actuarial Cost Method
Under this method the normal cost for each active employee is the amount which is
calculated to be a level percentage of pay that would be required annually from his date of
hire to his retirement age to fund his estimated benefits, assuming the Plan had always been
in effect. The normal cost for the Plan is the sum of the individual normal costs for all active
participants. The actuarial accrued liability as of any valuation date for each active employee
or inactive employee who is eligible to receive benefits under the plan is the excess of the
actuarial present value of estimated future benefits over the actuarial present value of current
and future normal costs. The unfunded actuarial accrued liability as of any valuation date is
the excess of the actuarial accrued liability over the actuarial value of assets of the plan.
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