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Resolution 2020-31248 RESOLUTION NO. 2020-31248 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE FINANCE AND ECONOMIC RESILIENCY COMMITTEE, AT ITS APRIL 24, 2020 MEETING, AND AUTHORIZING THE CITY TO CONTINUE MEDICAL COVERAGE FOR EMPLOYEES WHO ARE FURLOUGHED DUE TO THE COVID- 19 CRISIS, INCLUDING PAID EMPLOYEES' DEPENDENTS IF THE EMPLOYEE WAS INCLUDING EACH DEPENDENT UNDER THE CITY'S MEDICAL COVERAGE PLAN; AND FURTHER AUTHORIZING THE USAGE OF CITY FUNDS TO COVER THE RESPECTIVE MEDICAL COVERAGE PREMIUM PAYMENTS FOR FURLOUGHED EMPLOYEES (AND THEIR DEPENDENTS, AS APPLICABLE ABOVE) UNTIL THE END OF CITY FY 2020, OR UNTIL THE FURLOUGHED EMPLOYEES RETURN TO WORK, WHICHEVER IS EARLIER. WHEREAS, on March 11, 2020, the World Health Organization declared the rapidly spreading novel coronavirus ("COVID-19") a pandemic, acknowledging what has seemed clear for some time — the virus will likely spread to all countries on the globe; and WHEREAS, the rate of infection throughout the world and in the US has accelerated rapidly, grinding most markets and businesses around the globe to a halt, and devastating local economies; and WHEREAS, the City's financial impact due to the COVID-19 crisis was presented to the Finance & Economic Resiliency Committee (the "Committee") on April 17, 2020; and WHEREAS, the Administration took action to reduce costs, which included the furlough of 49 full-time, 208 part-time, and 64 temporary employees; and WHEREAS, at the April 17, 2020 meeting, the Committee requested that the Administration further review staffing needs for FY19/20 and look for additional furlough opportunities, especially in management positions; and WHEREAS, at the April 24, 2020 Committee meeting, the Administration reported that an additional 20 full-time employees were furloughed; and WHEREAS, the Committee passed a motion recommending continued medical coverage for furloughed employees and their dependents until the end of FY2020, or until the day that the furloughed employee returns to work, whichever is earlier; and WHEREAS, for pay periods ending April 12th and April 26th, the City covered 100% of the medical premiums for extended furloughed employees and their dependents; and WHEREAS, effective payroll period beginning April 27th, the medical premiums for the extended furloughed employees and their dependents shall be covered at the City's expense for those employees that do not use accrued Vacation Leave during their furlough; and WHEREAS, this benefit will be extended to current continuous furloughed employees, as well as additional employees that later may be furloughed in response to this financial impact due to COVID-19. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and the City Commission hereby accept the recommendation of the Finance and Economic Resiliency Committee at its April 24, 2020 meeting, and authorize the City to continue medical coverage for employees who are furloughed due to the COVID-19 crisis, including paid employees'dependents if the employee was including each dependent under the City's medical coverage plan; and further authorize the usage of City funds to cover the respective medical coverage premium payments of furloughed employees (and their dependents, as applicable above) until the end of City FY2020, or until the furloughed employees return to work, whichever is earlier. PASSED AND ADOPTED this / day ofd , 2020. ATTEST: Dan Gelber, Mayor Rafa-1 E. Granado, City Clerk "W•••• ;INCORPORATED'�; .. .fig }�"LB APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION City Attorney _D „ Date 1 Resolutions - R7 C MIAMI BEACH COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Jimmy L. Morales, City Manager DATE: May 1, 2020 SUBJECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE FINANCE AND ECONOMIC RESILIENCY COMMITTEE,AT ITS APRIL 24, 2020 MEETING, AND AUTHORIZING THE CITY TO CONTINUE MEDICAL COVERAGE FOR EMPLOYEES WHO ARE FURLOUGHED DUE TO THE COVID-19 CRISIS THAT DO NOT USE ACCRUED VACATION LEAVE DURING THEIR FURLOUGHED PERIOD, INCLUDING PAID EMPLOYEES' DEPENDENTS IF THE EMPLOYEE WAS INCLUDING EACH DEPENDENT UNDER THE CITY'S MEDICAL COVERAGE PLAN; AND FURTHER AUTHORIZING THE USAGE OF CITY FUNDS TO COVER THE RESPECTIVE MEDICAL COVERAGE PREMIUM PAYMENTS FOR FURLOUGHED EMPLOYEES (AND THEIR DEPENDENTS, AS APPLICABLE ABOVE) UNTIL THE END OF CITY FY 2020, OR UNTIL THE FURLOUGHED EMPLOYEES RETURN TO WORK, WHICHEVER IS EARLI ER. RECOMMENDATION It is recommended that the Mayor and the City Commission accept the recommendation of the Finance & Economic Resiliency Committee to authorize City funds to cover the medical premiums of furloughed employees and their dependents until the end of FY2020, or until the furloughed employees return to work. BACKGROUND/HISTORY The Finance & Economic Resiliency Committee (the "Committee") met April 17, 2020 to discuss the financial impact of the COVID-19 pandemic. Part of the discussion was Administration's actions to reduce costs as much as possible to mitigate the projected revenue loss. The Administration submitted a summary of actions taken, which included the furlough of 49 full-time, 208 part-time, and 64 temporary employees. The Committee requested that the Administration further review staffing needs for FY2020, and look for additional furlough opportunities, especially in management positions.At the April 24, 2020 Committee meeting the Administration reported that an additional 20 full-time employees were furloughed. ANALYSIS At its April 24, 2020 meeting, the Committee passed a motion that provides continued medical Page 23 of 43 coverage for employees and their dependents while on furlough until the end of FY2020, or until the day that the furloughed employee is returned to work, at no cost to the employee. To date, the City has covered 100% of the medical premiums for extended furloughed employees and their dependents. Effective payroll period beginning April 27th, the City will continue to cover the medical premiums of extended furloughed employees that do not use accrued Vacation Leave during their furloughed period.. For the approximate 49 employees furloughed to date, the conservative estimate for the City to cover the medical premiums is $52,000 until the end of FY2020.All other medical related costs (copays, deductibles, etc.) are the responsibility of the furloughed employee. This benefit will be extended to current furloughed employees, as well as additional employees that may be furloughed in response to this financial impact due to COVI D-19. CONCLUSION The Administration concludes that the Mayor and the City Commission approve the recommendation of the Finance & Economic Resiliency Committee to authorize City funds to cover the medical premiums of furloughed employees that do not use accrued Vacation Leave during their furloughed period and their dependents until the end of FY2020, or until the furloughed employees return to work. Applicable Area Citywide Is this a"Residents Right Does this item utilize G.O. to Know" item, pursuant to Bond Funds? City Code Section 2-14? Yes No Legislative Tracking Human Resources ATTACHMENTS: Description o Resolution Page 24 of 43