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Resolution 2022-32282 RESOLUTION NO. 2022-32282 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH APPROVING AND AUTHORIZING THE ADMINISTRATION TO IMPLEMENT A PLAN,AS OUTLINED IN THE COMMISSION MEMORANDUM ACCOMPANYING THIS RESOLUTION AND SUBJECT TO FUNDING AVAILABILITY, TO AWARD A NON-PENSIONABLE CASH BONUS IN CONSIDERATION OF FURLOUGHS GIVEN TO ALL CURRENT EMPLOYEES IN THE UNCLASSIFIED AND OTHERS GROUPS, WITH THE AMOUNT BASED ON THE RATE OF PAY AT THE TIME EACH FURLOUGH DAY WAS GIVEN, WITH THE CORRESPONDING BONUS FOR OTHER AFFECTED GROUPS SEPARATELY ADDRESSED IN EACH OF THE COLLECTIVE BARGAINING AGREEMENTS FOR THOSE UNITS. WHEREAS, on March 11, 2020, the World Health Organization ("WHO") declared COVID-19, the disease caused by the SARS-CoV-2, a pandemic, which, over more than two (2) years, has become the deadliest disease in American history, surpassing the death toll of the devastating 1918 flu pandemic; WHEREAS,from the on-set of the pandemic, the City has responded to the threat with an extraordinary public safety effort, issuing emergency orders aimed to prevent the spread of COVID-19 in co-operation with the Miami-Dade County and State of Florida, setting up testing and vaccination sites, and ensuring that the City may continue to provide the exemplary level of service to the residents as it had pre-COVID-19 pandemic; and WHEREAS, to date, the City remains as one of the municipalities with the lowest COVID- 19 mortality rates in Miami-Dade County, a feat that could not have been accomplished without the City's dedicated employees, who strived to maintain, and, in some cases, increase the level of service provided to the Mayor and City Commission, as well as the residents, during these challenging, unprecedented times; and WHEREAS, necessary closures for all non-essential establishments resulted in significant impacts to the City's finances, with revenue losses estimated to be $87 million for FY2020; and WHEREAS, in an effort to mitigate the projected revenue loss, City employees making more than $50,000 a year were required to take five (5) furlough days without pay by the end of the FY2020; and WHEREAS, due to on-going financial impact of the COVID-19 pandemic into FY2020-21, the City's adopted budget for FY2020-21 included additional intermittent furloughs for all departments and full-time employee groups under the direction of the City Manager, ranging from one (1) furlough day for employees earning less than or equal to $50,000, and five (5) furlough days for employees earning $80,000 and above; and WHEREAS, the City's finances have stabilized and improved significantly through the rebound of the South Florida tourism industry, as well as the financial assistance from the federal government through the Coronavirus Aid Relief & Economic Security Act (CARES Act) and American Rescue Plan Act(ARPA); and 1 WHEREAS, there is a tentative agreement for non-pensionable cash bonuses in consideration of furloughs to current affected employees in bargaining units including Group I represented by the American Federation of State, County and Municipal Employees ("AFSCME") Local 1554; Group IV represented by the Communications Workers of America ("CWA") Local 3178; and Group V represented by the Government Supervisors Association of Florida ("GSAF"), OPEIU, Local 100; with the non-pensionable cash bonuses to be implemented through the respective collective bargaining agreements; and NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission approve and authorize the Administration to implement a plan, as outlined in the commission memorandum accompanying this resolution and subject to funding availability, to award a non-pensionable cash bonus in consideration of furloughs given to all current employees in the Unclassified and Others groups, with the amount based on the rate of pay at the time each furlough day was given, with the corresponding bonus for other affected groups separately addressed in each of the collective bargaining agreements for those units. PASSED AND ADOPTED this /If day of September 2022. ATTEST: Dan Gelber, Mayor Alit T. Hudak, City Manager SEP 2 1 2022 APPROVED AS TO FORM &LANGUAGE &FOR EXECUTION kIPICORP ORATED•' - 1 �C l7122- hf-�•••'. rho r City Attorney Date 2 Resolutions-C7 M MIAMI BEACH COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Aline T. Hudak, City Manager DATE: September 14,2022 SUBJECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH APPROVING AND AUTHORIZING THE ADMINISTRATION TO IMPLEMENT A PLAN, AS OUTLINED IN THE COMMISSION MEMORANDUM ACCOMPANYING THIS RESOLUTION AND SUBJECT TO FUNDING AVAILABILITY, TO AWARD A NON-PENSIONABLE CASH BONUS IN CONSIDERATION OF FURLOUGHS GIVEN TO ALL CURRENT EMPLOYEES IN THE UNCLASSIFIED AND OTHERS GROUPS, WITH THE AMOUNT BASED ON THE RATE OF PAY AT THE TIME EACH FURLOUGH DAY WAS GIVEN, WITH THE CORRESPONDING BONUS FOR OTHER AFFECTED GROUPS SEPARATELY ADDRESSED IN EACH OF THE COLLECTIVE BARGAINING AGREEMENTS FOR THOSE UNITS. RECOMMENDATION The Administration has reached a tentative agreement with four out of five collective bargaining units and these contracts will be presented to Commission for ratification beginning this month. As a result and in an attempt to maintain parity and equity among all classes of employees, the Administration recommends the authorization to implement a plan to award a non-pensionable cash bonus to current Unclassified and current Others employees in consideration of furloughs given in the 2019-2020 and 2020-21 fiscal years consistent with the concessions made in the collective bargaining agreements. BACKGROUND/HISTORY As the COVID-19 virus had a tremendous economic impact on the tourism and hospitality industry of our Miami Beach business partners,the City also experienced a significant decline in revenue income. During that time our employees continued to provide the level of service to which our customers were accustomed as some worked hybrid shifts and others continued to work in the City. For nearly two years during the pandemic, our employees took on additional duties to fill the gaps generated by hundreds of sick employees over the pandemic period, and employees who decided to retire or resign("the Great Resignation"). Some of the added duties employees assumed were contact tracing, vaccination incentivization program, constant review of state and federal government mandates for employers' compliance, monitoring and meeting reporting requirements for federal funding, and other COVID-19 related duties that were relevant in keeping a safe&healthy work environment. Page 413 of 1700 After much consideration, the tough decision was made to enforce unpaid furloughs days and personnel layoffs of our employees (except Police and Fire bargaining members) to ease the economic strain and stabilize our financial downturn. For 2020 and 2021, the taking of furlough days yielded approximately $2.4 million dollars, not including those employees who were temporarily laid off. Fortunately, our financial outlook has improved significantly through the rebound of the South Florida tourism industry, as well as the financial assistance from the federal government through the Coronavirus Aid Relief& Economic Security Act(CARES Act) and American Rescue Plan Act (ARPA). Therefore, we recommend to provide to affected employees a non-pensionable cash bonus in consideration of the furlough days that were taken in FY 2020 and FY 2021. ANALYSIS The Administration will concurrent with the approval of the first group of CBAs provide the non- pensionable cash bonus in consideration of furlough days to the Unclassified and Others salary groups,which are not part of a collective bargaining unit. Furloughs were directed to be taken as follows: FY2020 Unclassified, Others, CWA, GSAF, and AFSCME full time employees who earned a base salary of more than$50,000 annually were directed to take 5 furlough days before the end of the fiscal year. FY2021 Unclassified, Others, CWA, GSAF, and AFSCME full time employees were instructed to take unpaid furlough days in accordance with the salary tiers shown below. Less than or equal to$50,000—0 days (0 hours) $50,000.01 to$60,000— 1 days (8 hours) $60,000.01 to$70,000—2 days (16 hours) $70,000.01 to$80,000—3 days (24 hours) $80,000.01 and above—4 days (32 hours) When furlough instructions were originally issued, the number of furlough days per salary tier were each greater by one day. Any employee who had already satisfied all furlough days under this original FY 2021 requirement were provided one administrative day off as an offset to the additional FY 2021 furlough which they had taken. SUPPORTING SURVEY DATA N/A FINANCIAL INFORMATION The cost impact of the unpaid furloughs for all full time Unclassified and Others employees is $1.3 Page 414 of 1700 million in FY 2020 and $1.1 million in FY 2021 for a total of$2.4 million. The General Fund portion of the $2.4 million is $1.7 million. The recommended funding source from General Fund reserves as shown in the chart below. This would be handled in a manner similar to the proposed 2% Cost-of- Living-Adjustment (COLA) from FY 2022 dated from April 1st, as collective bargaining agreements are approved by Commission. The non-General Fund portion of the costs is anticipated to be minimal to any individual fund and will be covered by the respective funds where employees are budgeted. General Fund $ Q2 Projected Reserve $96.1M Add'tl Projected FY 2022 Surplus(Q2 to Q3) $6.3M Recommended Uses: Capital Project Gaps ($7.6M) Proposed COLA(2%April 2022) ($1.3M) Proposed Furlough Reimbursement ($1.7M) FY 2023 One-Time Enhancements ($1.6M) Q3 Projected Reserve* $90.2M FY 2022 GF Reserve Policy(3 months) $88.5M FY 2023 GF Reserve Policy(3 months) $95.7M The Administration is also studying the impact of a non-pensionable cash bonus equivalent of up to thirty days salary(based on the rate of pay at the time)to employees who were placed on "extended furlough" (or"laid ofP') in March of 2020 for more than 30 days, due to the extreme circumstances that surrounded the impact of Covid-19 and the economic repercussions. This affected one particular bargaining unit more than others and if negotiated into that CBA the same consideration would be recommended for the handful of unclassified or classified other employees that were impacted. CONCLUSION The Administration will implement a plan to award a non-pensionable cash bonus in consideration of furloughs given to all current employees in the Unclassified and Others groups, with the amount based on the rate of pay at the time each furlough day was given. Applicable Area Citywide Is this a"Residents Right Does this item utilize G.O. to Know" item, pursuant to Bond Funds? Page 415 of 1700 City Code Section 2-14? Yes No Legislative Tracking Human Resources ATTACHMENTS: Description ❑ Resolution Page 416 of 1700