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20130717 SM5MIAMI BEACH City Commission Meeting SUPPLEMENTAL MATERIAL 5 City Hall, Commission Chambers, 3rd Floor, 1700 Convention Center Drive July 17, 2013 Mayor Matti Herrera Bower Vice-Mayor Edward L. Tobin Commissioner Jorge R. Exposito Commissioner Michael Gongora Commissioner Jerry Libbin Commissioner Deede Weithorn Commissioner Jonah Wolfson City Manager Jimmy L. Morales City Attorney Jose Smith City Clerk Rafael E. Granado Visit us at www.miamibeachfl.gov for agendas and video "streaming" of City Commission Meetings. ATTENTION ALL LOBBYISTS Chapter 2, Article VII, Division 3 of the City Code of Miami Beach entitled "Lobbyists" requires the registration of all lobbyists with the City Clerk prior to engaging in any lobbying activity with the City Commission, any City Board or Committee, or any personnel as defined in the subject Code sections. Copies of the City Code sections on lobbyists laws are available in the City Clerk's office. Questions regarding the provisions of the Ordinance should be directed to the Office of the City Attorney. SUPPLEMENTAL AGENDA C7 -Resolutions C7K A Resolution Accepting The Recommendations Of The Finance And Citywide Projects Committee Regarding The City Of Miami Beach Self-Funded Health Care Insurance Plans And Directing The Administration To Take Action Accordingly. (Human Resources) (Memorandum) 1 Supplemental Agenda, July 17, 2013 RS -Ordinances R5H An Ordinance Implementing Provisions Of The 2012-2015 Collective Bargaining Agreement Between The City And The Communications Workers Of America, (CWA) Local 3178; Implementing Similar Retirement Plan Amendments For Members Who Are Not Included In Any Bargaining Unit; Amending The Miami Beach Employees' Retirement Plan Created By Ordinance 2006-3504; Amending Section 2.26 Of The Plan By Extending The Deferred Retirement Option Plan (Plan) Program From Three (3) To Five (5) Years For Eligible Members; Amending Section 5.13 To Reflect Amended Eligibility And Participation Requirements And Amended DROP Plan Features; Amending Section 4.03 By Eliminating The Purchase Of Additional Creditable Service For Certain Members; Providing For Severability; Repealing All Ordinances In Conflict Therewith; And Providing An Effective Date. First Reading (Pursuant to Ratification of the CWA 2012-2015 Collective Bargaining Agreement) (Legislative Tracking: Human Resources) (Memorandum) R51 An Ordinance Amending Ordinance No. 789, The Classified Employees Salary Ordinance Of The City Of Miami Beach, Florida, As Follows: Providing For The Classifications In Group IV, Represented By The Communications Workers Of America (CWA) Local 3178, In Accordance With The Negotiated Collective Bargaining Agreement, Effective October 1, 2012, There Shall Be An Increase Of Eleven Percent (11 %) To The Maximum Wage For The Classifications Of Lifeguard II And Lifeguard Lieutenant; Effective The First Pay Period Ending In October Of 2014, There Shall Be An Across The Board Cost-Of-Living Adjustment (COLA) Of Three Percent (3%), And The Minimum And Maximum Of Each Pay Range Will Also Be Increased By Three Percent (3%); Repealing All Ordinances In Conflict; Providing For Severability, An Effective Date And Codification. First Reading (Pursuant to Ratification of the CWA 2012-2015 Collective Bargaining Agreement) (Legislative Tracking: Human Resources) (Memorandum) R7 -Resolutions R7K A Resolution Ratifying A Three (3) Year Labor Agreement Between The City Of Miami Beach And The Communications Workers Of America, Local3178 (CWA), For The Period From October 1, 2012 Through September 30, 2015; And Authorizing The Mayor And City Clerk To Execute The Agreement. (Human Resources) (Memorandum) 2 COMMISSION ITEM SUMMARY Condensed Title: A Resolution To Accept The Finance And City Wide Projects Committee's (FCWPC) Recommendations Regarding The City's Self-Insured Health Care Insurance Plans For Active Employees and Retirees. orted: Item Summary/Recommendation: Concerns related to the premium costs paid by the City and its enrolled employees and retirees for health care insurance has been a subject of discussion since August 2012. The subject was studied by the Budget Advisory Committee (BAC) with assistance from the Administration and the City benefits plan consultant Gallagher Benefits Services. The BAC made a series of recommendations which the FCWPC discussed at its July 8, 2013, meeting. The Administration recommends approval of the FCWPC's recommendations. Advisory Board Recommendation: The FCWPC recommended: (1) that the City continue with the same plans currently offered; (2) that the Administration should evaluate the City's premium subsidy structure and offer a more equitable distribution of the subsidy for each plan and (3) that the plan year change from the calendar to the fiscal year. Financial Information: Source of # Amount Account Approved funds I I 1 Financial Impact Summary: City Clerk's Office Legislative Tracking: Sylvia Crespo-Tabak, Human Resources Director Si n-Offs: Department Director Assistant City Manager City Manager __ SC-T JLM T:\AGENDA\2013\July 17\FCWPC Recommendation City Health Plans Summary.docx MIAMI BEACH 3 AGENDA ITEM DATE MiAMlBEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov COMMISSION MEMORANDUM TO: Mayor Matti Herrera Bower and Me FROM: Jimmy L. Morales, City Manager DATE: July17,2013 SUBJECT: A RESOLUTION OF THE MAYO AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACC TING THE RECOMMENDATIONS OF THE FINANCE AND CITYWIDE PROJE TS COMMITTEE REGARDING THE CITY OF MIAMI BEACH SELF-INSURED HEALTH CARE INSURANCE PLANS FOR ACTIVE EMPLOYEES AND RETIREES, AND DIRECTING THE ADMINISTRATION TO TAKE ACTION ACCORDINGLY BACKGROUND At the July 8, 2013, Finance and Citywide Projects Committee (FCWPC) meeting, the Committee discussed the Budget Advisory Committee's (BAC) recommendation regarding the self-funded health care insurance plans for City of Miami Beach active employees and retirees (Attachment 1 ). The City offers its employees, retirees and their eligible dependents the ability to choose health insurance coverage from five self-funded plans: (1) high option health maintenance organization (HMO); (2) low option HMO; (3) point of service (POS); (4) high option preferred provider organization (PPO) and (5) low option PPO. The plans are differentiated by their levels of coverage and associated premium rates. On August 29, 2012, the issue of premium costs paid by the City and its enrolled active employees and retirees for health care insurance was discussed by the Committee of the Whole as part of the Mayor's and Commissioner's proposed budget for FY 2012/13. The Committee of the Whole referred the matter to the BAC for their review and to make recommendations regarding efficiencies and cost savings for the City's medical plans. The Administration and the City's benefit plan consultant, Gallagher Benefits Services (Gallagher) provided the BAC with alternatives to the City's current medical insurance plan options. They reviewed cost components of the current medical insurance plans to identify where they could be reduced; changes in plan benefits coverage that could reallocate cost sharing between the City and enrollees; compared the City's medical plans to other employers (both in the private and public sectors) to search for other plan efficiencies and reviewed the self-funded plan experience of other employers, based on their filings with the State. 4 City Commission Memorandum Health Care Insurance Plans July 17, 2013 Page 2 of 2 BUDGET ADVISORY COMMITTEE RECOMMENDATIONS After a deliberate study of all the material and presentations, the BAC made the following summarized recommendations: The plans should remain self-funded. • The City's three premium plans, (Premium HMO, Premium PPO and POS) should be eliminated. • The Standard HMO and Standard PPO should be replaced with the HMO and PPO plans recommended by Gallagher and included the changes recommended by the members of the BAC which reduced the employee's out of pocket expenses and resulted in cost savings to the City. • The plan year should be changed from the current calendar year plan to the fiscal year to help simplify plan budgeting and provide accurate budget projections. • Humana should continue to provide the medical plan administration, Wellness Program and the City's Employee Assistance Program (EAP); • A Medicare advantage plan should not be offered to post-65 retirees; • Symetra should continue to provide reinsurance coverage for the medical plan. In their proposal, Symetra stated that if Scenario B was chosen and they were selected, further rate relief was possible. In addition, since the current reinsurance period may be short (1/1/12-9/30/12), a premium reduction may be possible as well. Gallagher is exploring this and other options that mitigate the City's costs with Symetra. • Prescription plan coverage should be "carved out" of the medical plan and provided by a separate prescription benefit manager, Prescription Corporation of America (PCA). • The City should offer a high deductible plan. To comply with the Affordable Healthcare Act, this plan would provide a cost effective option to both the employee and the City. FCWPC RECOMMENDATIONS City Administration presented the BAC's recommendations to the FCWPC and after extensive discussion, left the meeting with three recommendations: 1. The City should continue with the same plans currently offered; 2. The Administration should evaluate the City's premium subsidy structure and offer a more equitable distribution of the subsidy for each of the plans; and 3. The plan year should migrate from a calendar to a fiscal year to enhance staff's ability to forecast the City's liability better during annual budget process. CONCLUSION The Administration recommends acceptance of the FCWPC recommendations. However, as a result of the numerous high priority items for the July 17, 2013, Board of City Commission (BCC) meeting agenda, the Administration has not concluded evaluating its premium subsidy structure and is not in a position to make any recommendations to the BCC at this time. Furthermore, the Administration recommends that as a result of the numerous activities 5 City Commission Memorandum Health Care Insurance Plans July 17, 2013 Page 3 of2 associated with changing the open enrollment period to change plan year from a calendar to the fiscal year, said change should be implemented in preparation for the 2014/15 year. T:\AGENDA\2013\July 17\FCWPC Recommendation City Health Plans Memo.docx 6 ATTACHMENT 1 TO: Finance and 8, 2013 DISCUSSION REGARDING T E RECOMMENDATIONS OF THE BUDGET ADVISORY COMMITIEE (BAC) REGARDING THE CITY OF MIAMI BEACH SELF~lNSURED HEALTH CARE INSURANCE PlANS FOR ACTIVE EMPLOYEES AND RETIREES. BACKGROUND In LTC effects a participants in the year. such a rebate to be statistically sound ratios; such a Disabilities Ad, as we who did not Ath:;rhm.,nt B} group health plans. The reported in L TC3 uu-cn.: .. v of the Patient ~-'"'r""'"' 3, (Attachment C) on the on the City's medical plans. To date, the PPACA has: {1) removed all increased the dependent coverage age to eliminated pre-existing reason to coverage 1o dependent to age 19; for care coverage at no cost; required Form W-2 the employers' share costs; provided simple benefit summaries; decreased Imposed the Comparative Effectiveness Fee, effective 7 FCWPC Budget Advisory Committee Recommendations for City's Medical Plans July 8, 2013 Page 2 of 14 July 31, 2013, which requires employers to pay $1.00 per covered individual based on the average number of covered individuals in the previous plan year; and (9) requires employers to provide employees with information regarding the Insurance Exchanges as soon as they are available. The Committee of the Whole referred the matter to the Budget Advisory Committee (BAC) for their review and to make recommendations regarding efficiencies and cost savings. The Administration and Gallagher provided the BAC with alternatives to the City's current medical insurance plan options. They reviewed the cost components of the medical insurance plans to identify where they could be reduced. They identified options such as changes in plan benefits coverage to reallocate cost sharing between the City and enrollees; compared the City's medical plans to other employers (both in the private and public sectors) to search for other plan efficiencies and reviewed the self- funded plan experience of other employers based on their filings with the State. UPDATED PLAN STATUS The information in the October 9, 2012, LTC reflected the effect of an unusually high claims experience from September 2011, through August 2012. The claims experience from September 2011, through December 2011, was 28 percent higher than the rest of calendar year 2011, and 22 percent higher than the experience from January 2012, through August 2012. Such a high claims experience, if it continued as an ongoing trend would indicate that significant premium increases would be needed to avoid future funding shortfalls. The situation was anticipated to be further aggravated due to a delay in implementing premium increases pending the outcome of the BAC review. However, based on subsequent experience, Gallagher projected the total medical insurance plan costs for the 2013 Plan Year (January through December) at $17.8 million as of June 14, 2013, based on the prior twelve months of actual claims experience: April2012, through March 2013. This $17.8 million cost resulted in a projected overfunding of $71,811 for the plan year, despite the fact that premiums were not increased in January 2013. None the less, even with this recent performance improvement, Gallagher estimates that an increase in premiums between ten to 13 percent will be necessary for Fiscal Year 2013/14. The table below shows the employee and City current premium rates versus those projected for FY2013/14. 8 FCWPC Budget Advisory Committee Recommendations for City's Medical Plans July 8, 2013 Page 3 of 14 Active Employees Pre-65 Retirees 9 FCWPC Budget Advisory Committee Recommendations for City's Medical Plans July 8, 2013 Page 4 of 14 Post-65 Retirees Premium HMO ~--~~+-~~--~--~ N/A Standard HMO ~-~ POS $737.75 BUDGET ADVISORY COMMITTEE REVIEW On October 16, 2012, the BAC met and to facilitate their discussion, Gallagher provided Committee members with the findings associated with the aforementioned. Gallagher also provided the BAC members with a synopsis of the City's five medical insurance plans, as well as the plans' history from participating in a fully insured health care plan implemented in the late 1980's, to the current self-funded plans that were implemented in 2010. The Administration also apprised the BAC of the medical plans' challenges with an aging employee population and the large number of retiree participants. The BAC concluded that an in depth review of the City's medical insurance plan offerings was required. The members unanimously approved the creation of a subcommittee of two to work with Gallagher and City staff to review and recommend options. The subcommittee examined the feasibility of: • Reverting to a fully-insured medical insurance plan; • Reducing the number of medical insurance plans offered; • Restructuring medical plan benefits to parallel private sector plans; • Changing the City's premium subsidy for pre-Medicare retirees; and • Reducing the plans' administrative costs. The Administration and Gallagher met with the subcommittee on November 8, 2012. At the meeting, Gallagher and staff addressed questions related to the current plans and anticipated impact of the Affordable Care Act. At the conclusion of the meeting, the subcommittee instructed Gallagher and City staff to issue a Request for Proposal (RFP) to address: • Underutilization of "Employee Only" coverage due to high premium costs; • High claims costs; • A pharmacy benefit carrier separate from the medical plan carrier; • A comparison between fully-insured health plans and self-funded plans; 10 FCWPC Budget Advisory Committee Recommendations for City's Medical Plans July 8, 2013 Page 5 of 14 • Reduction in the number of plans offered; • The addition of a high deductible plan to provide an option with a low premium cost and high out of pocket expenses; • Feasibility of offering Medicare eligible retirees a Medicare supplement or Medicare Advantage plans; • Additional employee premium tiers, moving from the current two tier plan into either three or four premium tiers based on the dependent relationship and number of dependents; and • Reduction of the plans' administrative fees. The subcommittee met again on November 27, 2012, to review the final Scope of Services in the RFP. Upon their direction, Gallagher released the RFP on February 8, 2013, with a proposal due date of March 15, 2013. On May 7, 2013, Gallagher and City staff met with the BAC to review the results of the RFP process. Gallagher received responses from Aetna, Humana Cigna and United Healthcare for fully-insured and self-funded health care plans including prescription coverage, Medicare Advantage plans, Employee Assistance Program (EAP), Wellness and Stop Loss coverage. The following single quotes were also received: Prescription Corporation of America for prescription benefits; Engagement Health for Wellness; Ulliance for EAP and Symetra for Stop Loss. FULLY INSURED VERSUS SELF-INSURED Reviewed first were the proposals for fully-insured health plans. The proposed fully-insured plans would increase current City and employee premiums between 34 percent and 72 percent. Including a Medicare Advantage plan to retirees age 65 and over, reduced the increase in premium to between 28 percent and 59 percent. Reducing the number of plan options from five to two and increasing the employees' out of pocket expenses reduced City and employee premium increases to between 2 percent and 46 percent. Gallagher also explained that costs for fully insured plans are rarely reduced during good plan years when claims expenses are low and that premium increases are compounded over time, so a few bad claim years may severely affect premiums. Based on the increase in costs to both the City and employees, the recommendation was that the City remain self-funded. PHARMACY BENEFITS MANAGER Currently prescription benefits are provided by the City's medical plan carrier. At the recommendation of the subcommittee, the RFP included a request for a pharmacy benefit manager. Under this arrangement, the City could take advantage of their negotiated discounts with pharmacy manufactures and rebates from pharmaceutical companies. In addition, a pharmacy benefit manager provides guidance to employees on medication compliance and helps manage drug formularies. Also, they help control spending on expensive specialty drugs. Based on the cost savings to the City, the members of the BAC recommended that the City move its pharmacy benefit to a pharmacy benefit manager. 11 FCWPC 8,2013 6 of 14 MEDICARE Medlcal Pians Offering a Medicare Advantage plan for post-65 retirees was considered, The costs these plans are significantly as the plans provide coverage for deductlbles, copayments and coins~.mance, However:, current Florida the must provide retirees the same offerings It provides employees. So, could a Me<:ltcare Plan, it would need to to offer comprehensive Because the medical provided to retirees the City coordinate their payrnent with Medicare plans pay what Medicare does these plans have very low ratios paid is more than the total plan costs administration and claims) and fundamentally help offset the cost of coverage for the a low cost Medicare Advantage Plan to the pm.1lt~65 cause a substantial number move to a .,..r.,,t, .. ,.., an increased loss to active employees and retirees, negating the post-65 retiree For reason, a Medicare Advantage '"''"''"'.'"''"'retirees was PLANS OFFERED of the compared to recommendation of the recommended the As a recommendations: HMO, Premium Preferred Ft:>t"'Flrii,W'Io:>nriori ChangeS the also recommended the reviewed the three recommended plans, current Standard HMO and PPO Plans concurred Gallagher's some changes in the employees' out of expenses. A current Standard HMO and Standard PPO versus the BAG can be found in A*"'""~,,.,....,,..,t Changing the plan needs more accurately. current calendar budgeting and assist in 2013, presentation of the RFP results, the BAC made PPO POS) be * The Standard recommended by Gallagher, replaced with the HMO and the changes recommended the of the BAC employee's pocket expenses resulting In tower annual costs, 12 FCWPC Budget Advisory Committee Recommendations for City's Medical Plans July 8, 2013 Page 7 of 14 • The plan year should be changed from the current calendar year to the fiscal year to help simplify and provide accurate budget projections. • Humana should continue to provide the medical plan administration, Wellness Program and the City's Employee Assistance Program (EAP); • A Medicare advantage plan should not be offered to post-65 retirees; • Symetra should continue to provide reinsurance coverage for the medical plan. In their proposal, Symetra stated that if Scenario 8 was chosen and they were selected, further rate relief was possible. In addition, since the current reinsurance period may be short (1/1/13-9/30/13), a premium reduction may be possible as well. Gallagher is exploring this and other options that may mitigate the City's costs with Symetra. • Prescription plan coverage should be "carved out" of the medical plan and provided by a separate prescription benefit manager, Prescription Corporation of America (PCA). • The City should offer a high deductible plan. To comply with the Affordable Healthcare Act, which requires employers to enroll all benefit eligible employees automatically in a health care insurance plan effective January 1, 2014, this plan would provide a cost effective option to both the employee and the City. A full copy of Gallagher's presentation including their recommendations to the BAC is included in Attachment E. As noted before, the current medical plans are projected to incur at least a 10 percent, or $1.7 million cost increase for Fiscal Year 2013/14. With the implementation of the recommended changes, the City's medical plan costs would decrease 4.3 percent, or $718,794. These changes represent a total savings to the City of 14.3 percent, or $2.4 million for Fiscal Year 2013/2013 and are illustrated in the table below. iscal Year 2014 Projections BAC Self-Funded Difference (Savings) 2. Prescription Corporation of America identified as the pharmacy benefit administrator unde· the proposal under a transparent pass through arrangement of all pl1armacy rebates and ingredient cost savings. 3 Humana continues to be the medical benefit administrator but With no rebate offset producing a slightly higher administrative 'eeo 4 Symetra continues to provide ,·einsurance coverage. 13 FCWPC 8,2013 8 0!14 ANAlYSIS OF IMPACT Committee Recommendations for The p!.an structure recommended: by the BAC provides slgn!ficam savings in overall payments. The of these savings to employees is an additional policy ut;li:;;t:::;tul all the savings to the wm in higher those participated in the City's Standard HMO (approximately of all while also a reductfon in the plan benefits. Allocating the of the savings to the employee result in an in costs to eliminating benefit to the for revised plans. A number of scenarios were by reflecting savings between employee of these scenariost all costs are projected be $1 S. 13 Exhibit 1 are assumed to move to tr\e may incur substantia! but for and therefore has no 14 FCWPC 8,2013 9of'14 nw''"'"'"r"' 1n the Premium HMO and Standard PPO with rBduced coverage. Deductible is a new 15 FCWPC Budgat """'-"""''v Committee Recommem.:!atlons for 8,2013 iO of 14 Medica! Plans Scenario 2 compares the FY 2013/14 projected costs the City's current plans versus the BACs recommended plans, sharing the costs so the employee realizes a 15 percent savings and the City incurs a 3.9 percent cost increase. The remains as is with the 75 percent for the employee 60 percent for These subsidies are assumed to rnove lo the Standard may Incur substantial but for is a new 16 FCWPC 8,2013 1 of 14 Scenario 3 Scenario 3 compares the FY 201 Medical Plans Post-65 Retirees are assumed to mov'E! to the Standard incur substantiaJ but for projected costs for the current medical plans versus the 17 Medlcal Plans SACs recommended sharing the costs so employee realizes a 14.7 percent savings and the a percent cost increase. subsldy of 75 for the employee only and 60 percent n,-, .. .,,,.,, .. the most savings to employees enrolled in HMO plan. In HMO remains the same. The premium the PPO plan is the and 50 for family coverage. These subsidies :::.rtrHnn a deductible to the "''"'"""'""a more affordable option to the employee. Active Employees 18 FCWPC Comrnlttee Recommendations for 2Di3 of 14 reduced coverage. Deductibie ls a new 2013!20:14 19 201212013 for FCWPC Budget Advisory Committee Recommendations for City's Medical Plans July 8, 2013 Page 14 of 14 CONCLUSION After working closely with the SAC and Gallagher, the Administration believes these recommended changes help to reduce the plans' administrative fees, increase cost-sharing with employees and retirees and provide affordable health insurance plan options to the City's active employees and retirees. Because of the significant changes to the plan's coverage and increase in the employee's out of pockets expenses, the Administration recommends implementation of Scenario 3, which provides some premium relief to the employee. The Administration also recommends that the City change its plan year from the current Calendar Plan Year (January 1 through December 31) to a Fiscal Plan Year (October 1 to September 30) to match the City's fiscal year. This change will provide the Administration the opportunity to forecast the City's liability better during its annual budget process. Should the Finance and Citywide Projects Committee accept the SAC's recommendations and instruct the Administration to move forward, the Administration will present a resolution amending the proposed health plan changes at the July 17, 2013, City Commission meeting for their discussion. If approved, the Administration will begin the implementation of the plan changes with the selected medical plan carrier. This implementation will include a communication campaign for employee and retirees as well as working with the selected medical plan to make the appropriate changes. Attachments JLM/KGB/SC-T 20 vs Annual ,,,,_,,, __ ~,,-,+-,_,,,_,,, In Network ~ ~ Adult Child Health r ··-·· -~-~"~'~"----Home Health Care '---------~·"-' ___ _ Premium HMO so $0 Proposed -Open Access in $30 $0 $0 $30 $30-25 visits $30/$50 Deductible plus 80% $30/$50 Exhibit 1 Page 1 July 2013 ~ ~ vs Durable Medical taummPnt "'-"'"~''~~,~~-~---··---'~--·-,~-~--~~--"~"'~"-+"-'"" ~~~~~, Physician Generic Prescription Card Generic Brand re Insurance HMO HMO $40 $5 Month x3 $50 $7 30 Exhibit 1 Pagel July 2013 ~ w vs re nee -----------------·-'-'~-,-------vr.:•m111rn PPO $1o I sso Diagnostic Services/Imaging Advanced m"'""'nC'\1 Room ent In 20% after deductible, Out lln-$100, admission 10%; 40% after deductible Out-$500, admission In 20% after 40% after deductible 30% after deductible In 10% after $25; Out 30% after deductible ln-20% after deductible; Out !' ln-$100, admission 10%; 40% after deductible Out-$500, admission In $35; Out 30% aft deducti 30% after deductible In Out 20% after deductible $0/$0 so $ deductible 80% Deductible Deductible olus 60% Deductible Deductible 60% 60% 60% 60% % Exhibit 1 l'age3 July 2013 ~ ~ VS Generic Brand+,, _____ _ Mail Order Maximum Supply PPO Insurance Premium PPO Deductible PPO Deductible Exhibit 1 Page4 July 2.013 ~ U'l vs Benefit Generic/Brand/Bra re POS ·····-··""'"--·-·"·~"·-F----------·-----------:---In-In-$10/$10/$10 Month x3 Exhibit 1 Page 5 July 2013 ~ en Benefit Out of Pocket Maximum Physician Office Visits (Primary Care Visits (Specialists) Durable Medical vs H H Current Ambulance Plan Deductible 50% 50% 100% 50% Deductible plus 70% 100 Deductibl 70 Deductible Deductible Deductible Deductible plus 50% Deductible olus 50% Deductible Deductible Exhibit 1 Page 6 July 2013 ~ ........ Prescription Drug/Mail Order vs Deductible plus 50% Deductible Deductible Exhibit 1 Page 7 July 2013 Attachment A LTC # 272-2012 Health Care Costs 28 MIAMI BEACH OFFICE OF THE CITY MANAGER NO. LTC# 259-2012 LETTER TO COMMISSION TO: Mayor Matti Herrera Bower and Members ofthe Clty Commission FROM' Kathie G. Brooks, lntenm City Manager jlcfo /-' C) --! ·-< n ,-. rr, DATE: October 9, 2012 2t ~ ... u> SUBJECT: Health Care Costs a --, ... ~ ;::::; 0 C"") -I "l:J . :.:!t en .. (=) c..> This Letter to Commission is to provide an update on the City's medical plarrco~. in particular, an analysis of the individual medical plan costs versus the premiums paid by both the employees and the City as requested during the Committee of the Whole on August 29, 2012. The plan premium costs for the 2012 Plan Year, January 1 through December 31, 2012, were determined using the medical plan's total costs for the twelve month period beginning September 2010 and ending August 2011, including a 10% adjustment for cost increases. These premiums are supposed to provide all funding for the medical plan. This projected premium cost was determined by actuarial assumptions based on the claims expense; fixed costs paid to the plan administrator, Humana, which include claim administration, provider network, and disease management fees; and stop-loss premiums paid to insure that the City's individual per participant costs are capped at $230,000 annually. For the 2012 Plan Year, the total premium cost was projected to be $17.9 million. For your reference, Attachment A reflects the City's self-funded medical plan experience for each of the City's self-funded years, beginning in 2010 and ending in August 2012. The Attachment reflects the medical plan enrollment by active employees, pre-65 retirees and post-65 retirees, the total monthly medical plan premium, the total claims paid, the medical plan's fixed costs, the total medical plan expense and the loss ratio (the percentage of claims paid and plan costs over the premium collected) for each individual plan, and enrollment group. The issue of the premiums paid for each plan offered by the City has been referred to the Budget Advisory Committee (BAC) for their review and recommendation. The Administration is working with our benefit plan consultant to provide the BAC with alternatives to the City's current medical plan options, including reviewing the cost components of the current medical plan to determine areas of cost reduction; changes in plan benefit coverage that share more of the plan costs with employees, therefore reducing premium costs; comparing the City's plans to other employers (both in the private and public sectors) to determine plan efficiencies; and reviewing the self-funded plan experience of other employers based on their filing with the State. In addition, for the 2012 Plan Year, the City's benefit plan consultant, Gallagher Benefit Services, has projected total medical plan costs of $19.1 million as of September 24, 2012, We are commWt...J lo providing PXC{_·?fkmt public service ond lo oil who live, work, ond ploy in our vibronl, tropicol, historic community, 29 based on the prior twelve months of actual claims experience from September 2011 through August 2012. It is important to note that this includes the impact of the claim experience from September 2011 through December 2011, which was 28% higher than the rest of Calendar year 2011, and 22% higher than the experience of January 2012 through August 2012. If this end of year large claim trend continues, there will be a significant deviation from the current plan projections and the medical plan will experience a shortfall in funding that will need to be made up through additional charge backs to departments. A review of projected claims vs. 2013 premiums will also be discussed with the BAC on October 16, 2012. Should you have any questions, or need additional information, please feel free to contact me. Attachment KGB/sr F:\HUMA\$aii\Sue\Letlers To Commisslon\LTC Health Care Costs Final.docx 30 Attachment A City of Miami Beach Medical Plan Experience by Plan and Enrollee Class 31 Plan CIR'S standard liMO J\~llva Premium HMO Acilva Standord PPO Pr~mlum rro Pro 65 Rotlroa POS 32 Premium HMO ard ?PO Premium PPO POS Pra MC R.otlroO!;! 33 Attachment B LTC # 305-2012 Health Care Premium Rebates 34 OFFtCE Of NO. LTC# ClTY MANAGER H TO; Mayor Herrera Bower FROM: Kathie G. Brooks, Jntelim City Manager DATE: November 2012 SUBJECT: Health Care Premium Rebates lETTER TO COMMISSION This letter the Commission is in response to members or the City Commission inquired as to why those health pfans with !ow loss mtios do not provide a to the plan participants when the premium for covemge exceeds the amount of claim oost incurred by the plan. To deterrnine what affects a premium rebate may have on the City's health pian, and if a premium rebate is a viable for the City, Administration contacted the City's Benefit Consultant Gallagher BaMflt Services {Gallagher), for guidance. The actuary assigned to the City indicated that while employers have the abl!ity to prospective premium and contrlbutlon rates that reflect experience by plan, have uniformly avoided retroactively rebating contribution dollars by plan based on experience. Gallagher is "'"''""'"''~'"'''J'i that such practice would violate Federal such as the Americans Disabilities Act (ADA}, rewarding employees not seeking or tGceMng medical penalizing employees illnesses, The however, may prospectively incentMze good behavior, for example, rewarding employees for having a variety of vital signs tested and then giving discounts for hitting goals for things like pressure, body mass and cholesteroL As part of the Budget Advisory Committee's of healthcare costs, the City request it recommend a program to encourage healthy behaviors and target specific health actions customized information, financial incentives and ongofng support for employees. More specific to the there are a few reasons the actuary has advised us a premium rebate would not be feasible. the in most of the plans is too small to be """"'?"'"''"'""'"' sound. You can see a very good of this when you look at the enrollment and the associated ratios by year a.nd by provided in the attachment As can see, many plans have few participants a.nd have high expenses, When at the pian's loss ratio, the percentage of cost paid versus premium oollected from those enrolled, loss ratios for the plans fluctuate from year year; one year having a relatively high loss ratio and a subsequent year with a much lower loss ratio. Even when the plan's enrollment is quite small, the plan's cost may be quite significant As an example, in 2009, the Premium PPO twenty-four active employees, and experienced a dalm loss ratio of nearly tn there were seventeen (17) enrollees with a claim loss ratio of only 31 The Premium PPO currently has eleven (11) active employees in the plan. Through August of 2012, the eleven (11) enrollees had averaged a 35 loss ratio of just over 60%. As this shows, with such a small enrolment, even a few moderate claims can cause huge swings in the plan's cost. We see similar results for the other plans as well, especially for the plans with lower enrollments. Even if we combine the enrolment across actives, pre-Medicare retirees and Medicare retirees. we see significant variation from year to year for any given plan. Beginning with the City's 2006 Annual Open Enrollment, the Administration has been educating employees of the premium cost saving provided by Standard HMO and PPO medical plans. This employee education has been successful in moving the majority of employees to the City's two lower cost Standard medical plans. This change in coverage not only provides the employee savings, but also the City, as the premium rates for the Standard plans are lower than those for the Premium plan. For example, for an employee enrolled in the Premium PPO plan, the City's premium subsidy is $1,87 4.46 versus $1,306.64 for the Standard Plan, providing a monthly savings to the City of $567.82. The 2012 monthly premium cost for the employee and City are included in Attachment B. Currently of the nine hundred seventy three (973) active employees participating in the City's medical plan, nine hundred twenty four (924), or 95%, have elected medical coverage in one of the City's two Standard plans. Additionally, the City subsidizes coverage at no Jess than fifty percent (50%) of premium cost for the Premium HMO, the Premium PPO and the POS plans. The City subsidy for the Standard HMO and Standard PPO is more, 75% for employee only coverage and 60% for family coverage. So conversely, employees pay no more than fifty percent (50%) of the premium of any plan. Unless a Joss ratio, including the administrative fees, drops below fifty percent (50%), the City is still subsidizing the cost of the coverage. Even if experience on any one plan is consistently good, the City is still subsidizing the cost of that plan and employees are not being charged more than fifty percent (50%) of the cost of the coverage. KGB/RG/sr Attachment F:\HUMA\$aii\Sue\Letters To Commission\LTC Health Care Costs Final.docx 36 Attachment A City of Miami Beach Medical Plan Experience by Plan and Enrollee Class 37 38 w c,g Plan POS Premium HMO Standard PPO Premium PPO POS 4 ~ 0 otal By Enrollee Class ctlve Pre MC Retirees MCRetlrees Attachment C LTC # 069-2013 Impact of the Patient Protection and Affordable Care Act to the City of Miami Beach for the 2013 Plan Year 41 MIAMI BEACH L'J ~ OFFICE OF THE CITY MANAGER NO. LTC# 069-2013 <=> -I -< ......., LETIER TO COMMISStQ~ ::::0 m 0 m TO: Mayor Matti Herrera Bower and Members of the City Commission < (/) > :X FROM: Kathie G~ Brooks, Interim City Manager ~ ~ ~ -n \.D N Cfl 0 DATE: February 28, 2012 SUBJECT: Impact of the Patient Protection and Affordable Care Act to the City of Miami Beach for the 2013 Plan Year We have now entered into the third year of the Patient Protection·and Affordable Care Act (PPACA). In order to comply with mandates of the PPACA, the City made the following changes to its health plans during the previous two years which, resulted in little, if any, cost impacts: to the City's medical plans. The following outlines the revised provisions of the PPACA and the impacts associated with these changes to the City's medical plans. Revised Provisions Effective in the 2011 Plan Year VVe • Lifetime dollar limits removed from all plans This mandate eliminated the City's $2M lifetime limits on its Standard HMO and Standard PPO plans and eliminated the $5 million lifetime limit on its Premium HMO, Premium PPO and POS plans. • Dependent coverage increased from age 25 to age 26 The Administration monitored the enrollment of dependent coverage for those over age 25 during the 2011 Annual Open Enrollment period. There were no new enrollments of dependents who were age 25 during the 2011 enrollment period. There were some previously enrolled dependents who attained age 25 during the plan year whose coverage was extended to age 26. At this time, no perceptible cost impact to the plan has been determined. • Elimination of pre-existing condition limitations for enrollees up to age 19 Previously, employees would have provided a HIPPA Certification indicating that their dependent had health coverage in the prior 18 months. This certification removed the pre-existing limitation for the dependent. At this time, no perceptible cost impact to the plan has been determined. • No recessions, meaning an employer cannot retro-actively terminate an employee's coverage, unless there was an error in the employee's enrollment The City has not experienced a correction in an employee's enrollment that has created a retroactive termination of benefit coverage. Plan enrollments are ·audited annually to ensure that the employee is enrolled in the plan option elected. 10 42 11 Coverage for preventative care received by network physicians provided at no cost sharing by the plan participant In reviewing claims costs, we have not recognized a significant impact to the cost of preventative care to the plans. • New requirements for appeals to the plan for coverage of services not covered by the plan, including plan response deadlines and final, external review from an outside, third party were required The City is contracted with the benefits plan carrier which requires the plan carrier to act as the Plan Fiduciary, eliminating the responsibility from the City to make coverage determinations based on a participant's benefit appeal. The expenses for these required changes were the responsibility of the benefits carrier as Plan Fiduciary and not the City and thus, were absorbed by the City's current plan carrier, Humana. Effective in the 2012 Plan Year • W-2 Form reporting for the employer cost share of the employees elected health care coverage This information is included on the 2012 W-2 Forms received by all employees. Changes were made internally to the City's computer system providing for the printing of the information on the employee's W-2. The City did not incur a cost. • Distribution of a uniform summary of benefits reflecting the scope of coverage by the plan, provided in a 12-page document, written in simple language to be distributed no later than March 2013 Humana is providing the summaries of benefits to the City at no additional cost. These summaries of benefits will be electronically available to all employees in March 2013. Effective in the 2013 Plan Year • The plan year limit for Health Care Flexible Spending Accounts reduced to $2,500 from $5,000 Flexible Spending Accounts are funded solely from employee contributions; therefore, there is no cost impact to the City. 11 Annual dollar limits on essential health benefits cannot be lower than $2M The City's plans did not have dollar limits on the benefits provided, (all of the plans have a limitation on the number of annual visits per year) therefore, there is no cost impact to the City. • Comparative Effectiveness Fees for group health plans PPACA imposes a new fee on group health plans to promote research comparing effectiveness and risks of medical treatments. The initial fee is due by July 31, 2013. For the 2013 plan year, the fee is $1.00 multiplied by the average number of covered lives (based on enrollment for the previous year). For the 2014 plan year, the fee increases to $2.00 per average covered life. For later years, the fee will increase in accordance with medical inflation. The fee will only apply through the 2019 plan year. Currently, the average enrollment for all active employees in the City's five medicals, including the FOP and IAFF 43 Health Trusts, is 1,494 lives. For 2013, the City's cost for the Comparative Effectiveness Fee will be $1,494. • FICA Tax Increase Effective January 1, 2013, the Medicare withholding increased from 1.45% to 2.35% for wages over $200k (or $250k for married couples filing jointly). • Notice of Insurance Exchanges Employers must provide notice to all employees explaining their right to purchase healthcare coverage through an exchange, their right to possible eligibility for potential government subsidies for healthcare coverage purchased through an exchange, and other features of the exchange. However, as of this date, no guidance has been provided to employers as to what information to share with their employees. The Department of Labor (DOL) has postponed distribution of this notice to employees until the notice can be coordinated with the Health and Human Services (HHS) educational efforts and the Internal Revenue Service (IRS) guidance regarding the minimum value that can be provided. The DOL expects that the timing of distribution of these notices will be in late summer or fall of 2013, coordinating with the open enrollment period for the exchanges. The Administration is currently working closely with its benefit consultants, Gallagher Benefits Services, to monitor any changes in the current mandates, to comply, implement and determine the cost impact offuture mandates of the PPACA for plan year 2014 through 2018. Information regarding future impacts to the City's medical plan, including the estimated cost impact to the plans, will be provided to the members of the City Commission as soon as they are available. Should you have any questions, or need additional information, please feel free to contact me. KGB/CG/sr F:\HUMA\$aii\Sue\Letters To Commission\2013\lmpact of PPACA.docx 44 Attachment D Comparison of Current Standard HMO and Standard PPO Plans Versus BAC Recommended HMO and PPO Plans 45 Comparison of Recommended Plan Design Changes HMO Outpatient Surgery $200 co-pay Advanced Imaging (PET, MRI, MRA, CAT) $200 co-pay Prescription Drugs 90 days through Mail Order option 46 90 through Mail Order mandatory for maintenance medications Comparison of Recommended Plan Design Changes PPO Annual Out of Pocket Maximium (deductible, copays, coinsu Outpatient X-Ray and Laboratory Testing Urgent Care Services Prescription Drugs -Retail Deductible then 40% Deductible then Deductible then 47 40% 30% after co-pay plus the cost difference between generic and brand name 30% after co-pay plus the cost difference between generic and brand name $200 co-pay and Deductible then 20% 40% Deductible then Deductible then 20% 40% Not covered Not covered Attachment E Gallagher Presentation to BAC Results of RFP No. 2013-08 48 49 1. 8. Pharmacy (Self Funded) Marketing 2. Overview a) a) Pharmacy Marketing b) Let1ers Methodology 3. Responding Vendors b) PBM/ Analysis a} Lines of Coverage Vendor L Total Population b) A.M Financial Ratings ii. Total Excludes 4. Disruption & (J'I 5. Medicare Advantage Analysis iiL Full Truveris Analysis 0 6. Fully-Insured Marketing Analysis (under separate cover) a) Scenario A Plan Designs 9. Overall Summary i. Financial Summary a) Scenario A b) Scenario B Plan Designs b) Scenario B l. Financial Summary c) Claim 7. Marketing Analysis 10. EAP Marketing Analysis a) Plan & Methodology a) Premium Rates b) Administrative Only (ASO) b) Summary 11. Well ness c) Reinsurance Quotes a) & Cost d) Reinsurance Terms & Next Steps Appendix a) Contingencies, Exclusions, & limitations 'n 'y,, ' ' 51 I Ill I i -I 2008 12.3% 12.3% 1,639 $15,586.760 $15,586,760 2009 4.4% 3.3% 1,637 $4 6,256,857 $15,484,667 $772,190 2010 9.8% -3.6% 1,624 $17,248,591 $16,219.484 $1,029,107 3.0% 9.3% 1,586 $17,351,316 $18,517,167 ($1.165,851) 2012 24.2% '12.4% 1,541 $19,866,823 $19,144,875 $721 --~-· • -< > -"-~. --. ~--(J'I N 9.9% 0.0% -5.0% ~Actual! '""r·"'"'6" ~Actual/ um••<''"'"'" Gallagher Public & Scholastic (J'I w I $5 $40 $0 $100 so Gallagher Public & Scholastic Group ??0 Premium POS $261.70 $763.90 $425,06 $1,~14.46 (J'I ~ Gallagher Public Entity & I V' (J'I (J'I Public Entity & I 0/,:; Post-65 Retiree ! LL 56 i I i 1 • 13 ~ ~ ~ ~ ~ ~ ~ 1 • 13 ~ ~ ~ & Group __ ./,' (J'I 00 II II I l 11m 11m 11m 11m b<YhP.-Public & Scholastic Group !oc. 59 en 0 m I ~~ Aetna -Fullyelnsu Medicare ~~ Cigna Fully~lnsu -Medicare Supplement II Public & !nc. • Hu --Fully-Insured -Medicare • Symetra • Stop m m -Advantage Wellness ,'-"/ -ca 11!11-u c ea c 11!11- LL u; (1) 61 62 (I) ~ 1111- (I) u ~ -ca c ~ s:: ~ "::; r::::: 0 w 1000-'~ ~ ::0 Cu.. ::::1 0.. ::::1 ._ U) ~~~~- 63 Cl) lllf- CI) ~ -ca c: Cl) en (1) u u 0 G) 64 0.. en :::::1 0 h 1111- u (/) ~ -c:a s::: ~ (I) (/) CD u u 0 Q) 65 en en I I Niflfmrl'tinn M941icare !10if8flral'JfHJFOJ)iDSoff£ Si!li:>TJ'tlf!En:i mufiic,le pfans, rates, Wltl't!WlifNDW possible to .Srl!:!l't::r,rtrt<: dis;SMiination of this if the City intends to pursue a Medicare Advantage explored before implementation. The decision to implement n!:;,nninn and in consultation with the post~65 & Group en ........ " ., Medi(;{jre ~''"""hl"""' Rx cov~rage en 00 II $1 !II I I I wi!h Rx b i~11~ll00il bl;! ~150 W\ HMO w!i)'; Hx for Bt!lW<Jd whim i$ closely m3U:fling ::ioJnarios A 8 while 11M iJll$1 camm gmero!<ld llle l!llme proposal n'.!!i!$ In 2Di4 so lil®il<i! num~ ~llnnuli<<:OO for wmpa~isor1 pu~s bvt for jlh<lrtmcy oovorll!Ja ~$ ooll i'EPM IJ;Jl tho Gilli!riS Md POP pr<:mlum amooni &Ill oo a PMPM basis 69 111111 ...... 0 IIIII I i --Gallagher Pub1ic & '' ~ ::s OOIIIIIIIR C1) I.a. 0- ~ I (I) I: CD OOIIIIIIIR en CD s:: ca -c_ 71 ::s Iii!- I (I) c C) liil-cn Cl) c ns -Q_ 72 I en c en ~~~-CI) CD c Rl -Q_ 73 1111-t) ::I we G) I U) c en 1111-cn CD c cu -0. 74 --::s U- 1 0 .. _ '-ca 1: CD u (/) 75 en c C) ~~~~-en (1) c co -c_ 76 (/) s::: en ~~~-en Q) c a:s -0- 77 1!11- I (/) s:::: C) 1!11-U) Q) c ns -0. 78 ...... c,g -I I Entity & I!! I *United did riOt provide HOP 111111111111111 LL I LL 80 00 ~ ill ill 1111 1111 1111 I i I Public Entity & 00 N !II li I I !II I services which •viti affect the overall administrative lee when added 00 w ill! I Gallagher Public & ) 00 ~ II I Hum ana lncurred by a Actively • terms just as the to which they are attached No, pending review the Stop Lo Disclo • Cigna United Healthcare were to comply requested terms and conditions • Human a was the most expensive reinsurance carrier to the tem1s and conditions requested • Symetra and Aetna matched the terms conditions within $25k -$29k in price • Symetra is the reinsurer, understands the risk, always reinsurance claims promptly II! When switching reinsurance carriers, careful consideration should given to all of conditions, ratesl and history Public & Group 85 00 en I • Gallagher partners with a firm, Inc., to perform many pharmacy manager ("PBM~') I administrator • incorporates three positive been difficult to through the traditional PBM -I agree to the during the or !IH:li1II"Ol:l. with them-this the contract tf awarded the -with full transparency which is that the self-funded health plan will without margins built into prescription drug -Truveris then the vendors based upon the criteria mentioned selection~ monitors the vendor on a monthly basis to ensure the contractuai terms • vendors for pricing with and without Medicare implementation retiree • following slides a high level a 3 period with scoring on qualitative quantitative vendor • full analysis is provided under will this and related to pharmacy expense also important when selecting a • with the overall score Pharmacy based out Louisville~ KY & Setvices, !oc" s:: 0 !iii- ~ ns -::s c:L 0 D. -ns ... 0 1- I 0.. § u en WI-en ~ -ca c: 87 It) CD 1111 ~ (I) 0 a. en (1) "C ::s -u >< w I (I) 1111-CI) ~ -ca s:: 88 - 89 90 0 ~~~~-._ ca c CP 0 (/) I -C'G 111-u c ca c ~~~~-LL 91 (,0 N i I I -S)'JJ\We rootimms to pro·;klil r®nsuranoo CO'Iithg& 5Unitoo HeatrJ1t1:lr<Hlid wittww MA m10 HDf' pl.sn witn MA illlrlien1<mlllti3n i>JAA premium differs Qt!Ol~ has different ooneni ft.wels; a1i CiJITiiVS quoted \Ailmillistrativ;ctllsrose Man~J1iement lll:pensea Vili'J' per caniili' in of ser-ims !)fi)jYJfled, Gallagher & Group Service&. !oc. en 0 ~~~-.. n:s c Cl) u ~ ::s 0 c ::s ~~~-ca - 93 "" ~ .!iii "': ;;;;;;. ill E ) <1$ E i l!:i "" "' ·~ n 2 "' 2 11 ~ ~ "' ~ ~ 1!l e ;;;; ~ "" "" <e "' l !:" ~ 0 @ '? 1l Q "' ::2 5 £! "' ""' <:: "" c R ~ "' "' «; ;n "" :% "' ,5 ~ i £! i \\.) ~ ill i:"; 0 ¥i IZ. £! "' ;;;; 9 ;£i 1l 3;1 j IE 'fl.! u 2 c; 2 1\'$ £ ] ~ "' "' .!& ~ ~ ·;;;; "' ~ -""' ;;a <"> -:tz 15 i ..9 13 $ "" *' ''li) !It E' '$> &? ill i!1 '10 "' n "" ~ E 10 "' n 2 :5 <::> "' 0 "' 2 lj £: ~ ';;> "' "' "'' "' i § "" £> "" c: '§; "' ~ I ,£; -2 11 ~ = \E. "" i ;£i ?I .B ::r 1 ~ $!: !.II "' "" '4!1i 8 "" :;:; :i 1<1' .... "" 94 ~~~~- 95 w 96 (,0 ........ I I the numerous varied received for Welfness Plan program administration, GBS would recommend exploring available options after St;lectlon of funding arrangement, health plan redesign, any post-55 solution that is chosen for implementation. Many We!fness vendors price their services em a participating basis while others charge a per head amount on the entire population regardless of services utilized, A thorough discussion of what the City can implement, hopes to obtain and can commit to in regards a We!fness Program should take place. Program solutions designed to improve the health of an employee population are on!y as successful as the commitment the organization makes from top down to manage the Program and mandate & 8 ~ g g ~ 5i g 1\j g g g g i I .t ~ en 0 ! J ffi: -c c: ca (I) .,._, ·-'1- (1) c: (1) (I) en (1) c::: --(1) 98 (,0 (,0 II 100 ~ 0 ~ rum I I I I . • 102 ~ 0 w • I I i · I I il11m ana C~Jvaats Aetna Um!amrltlng fumtl!U~lllt aoo Cavms ~'"'"""''""~M ri tha pwr<Bild However, GJarft!llaa I> the mm\00' cf oovared This Pf!JPV'SE1 assume;; yo11r iJ{an is Ml l]f&M!SII!lilfoo. a m~•iJWOOiatllilrild pian. 1he plan wiii im;hJd.e sllaling on Net>Vlllk sfi£0K fumtil (0af!f\11Ja !he righ! to mooify i'J> aoo let<>. in and to any molelial feeo, i:hangas in th;,lsw aven if ~o c:~~ngas are mandsir.xl 2fi1 3 through lhe &eU·~Joded ©Jv&llfles included In tl1is pro)XlSill The mniurw !ens are fJUThttmtead tnB number 0! omploy-ln £~ggrii\ga!e fmrn our erFlllm;nl Qf,r;unmhoos an )I sub>~Jq:Jat1l1:t reset a.s:;umed a rnl'i11beHo· ~ M loo~ wiiibenvl!ifu'ld fihllr-~ifl:mm ... lcr lhe Prefooed Specially Plmrmat~J\Jlical PrD<yam) all sp'lf:ialty pha1m;;w.oo!Jca\ earn ad on riwg claims mat we udminis!llr and ~l.mnWittlllar lilon Bene!\1s 0.1\5% was im:Judoo on !lfVfAJSOO rates iJ'm wa1i a;:;l;fue w1tn reiiroo lff()fl~al Public & ~ 0 ~ Cig<~a if: bes sellorth 1111 1111 I I I i · I I 01: withdraw awol! from erFollmtmt f${)Uil e tll(lf$ tfl @fi Af'i'!k;~(1on ol !his l'ro!)Oul However, U1L1 to lliat usoo tt:; Mooicare to allowab!s fei\um lc meet if1e !Jj)!formence CillllmiLments Gallagher Public & Scholastic iknefit ~ 0 CJ1 Hum*n' Fer a.1ctilional ;nleriar.:e ~aa ~-ext~trnal a a ala fe0:l lr; i1l W%l·H#l'fdll!l W1lHlor{s), wcli as Humat,~ prer.ides COSf{JI 1mct billin~ 5$1¥1CBS 1111 I will bill !he due to inrreased oo:':s In !M%Cl!!iWl or flmmft! I i -~'willao::epl lhs difference idhWI11ng instnJctioos, p;intirg lhe Admi1istration feed cmd•l will be PEPM. d;>;i:;.,t(,!f).fi, Aetna r%H: as &aiimd ty reg~ w%1C1.1t coot a!Klrate:~, mcou;umyooslm, mm, laes, fu~b r"i)ulalio~ olfjovermmml a.;.;!h®fi~es Wehnv~ He~ltll Net.vvr~ Only 10 in Dim1!1f©hen8ve pian I! maximum ERGs, hilling Public & Group ~ice<.. Inc WlliV!If$) ~ 0 0) Gil!O~ It Gener~lleim$ vf !his Cigna MeallhCare is date g ct•ange diilfHJ!Ihequote, Less lilar! 200 err.piDy?BS cr Ieos than 70% e1 total empklyees lhe Plait I i 6, Enr~~lnwnl int;t~;~as*> or cteaea~ i:iy t'le to!alao::ounl in)ll] me enwllmem asswmpticr>S used IOOS SB! !ooh hs>ein, Mre as inclu-ded ~overed 01 the beginning the pal!t:y year or !his Prqli;$!Jr United Healllli;~re basoo on 8ssum pvw>. BD the revOOil&on Public Entity & Scholastic -mcre!lmn $!Jflficr,•;'suppErJsl:itat ar0 ,:;owwoo F()f tilese used blf Me:!icata lc dewwme allowab\9 ~ 0 ....... Swmetra GDHDI'l£t1!1CI8S Pbrc Aetna I! I terms the Ext$t; I i f\ken\ial lor oy '>''IM.er's any payment;; made canier as penml Si!.l)l be repr.1tali to Aellia no later lfm~ underwrito !he & Group ~ 0 00 'II I Adminislm!ioo ~ ill•: ~ !IOOC!affil Brarn:ll Brmllt~: 2t1 1hii 1\(i~ ¢{ lAl111ted p~ 1df S1J:;p !£JSii rovk!1Jl!!!, $I !lrtM &I ill Thctaate~!nll!.e ~ip!aft, "'-~"&';,., Human~ Public & inc I i · in UH! rar,es andfor le<'l"l .SlJI. 1t)lij1 fli\Jre thoi110% iH)fl1.1i\~ OOginal <J$~ffioietl and HWlllllCare Comprehensive Oncology $.1li pM empbyoo p!<f moolh wil\ dedurled foos and wlll be f!lSllii\Wl>rble f\lndioo rtm·p;derroo 1/lCndnt pmlerroo slop carrier !he moo!hly k1il is ard ~ 0 <0 ill I '"n'"'""'-Public & I i un;t&:l14aci11t,c;;FB. TNt Disr:L?Sure ~;(8tement mav iXJ l11veh0! ~ ~ 0 Ill I I i -m I 11umana emcl!ed aM Pllit rsl€$ MrJdtC$l P1Bn pr~al >s oasoo rm rd~imum ErrJpli;y$tCC<Wibu!io~ t() r•emwm The ille It AcupuncLmt Ortho~cs a~d rvs!ooJ·fi!!ed no! rove!OO w•~ess Jh&f are !nr indillidual> as a direct n:oosumble Hl1mana r~r\188 ron!lioolion io premi,;m l?1e on!y opuoo fr.>t Medicare eligibls mtiress thilM IBBI:lt\l€$ ills ri~htl<i .f rl&ll!)iiMWy. Public & ~ ~ ~ Aehlll The t:mpioyet contri!mkkm recrwrernenl!l pe1oontage, !ha Rate i!lld benefit lfFO(jJh J(Ji3, m I I i -I()( ~~ ~ . Callaghcr Public Entity &. Croup lrtc m I If the employees), k>r all !'leach w1ll ux111ru.Je 1D be aflmcd reprice, if naeeS!liJ!)( PIUlt ~ ~ f\) I Hwn~M wiih Ae!na AJ11l1!lpby~. mnnbt% am rate Ratoo are tlepen~0rw on ;Jmpl0)te~> po!)ula\lon wilhin Clgna Rates of!hal ht)tl( an Gallagher & Group ~nc I i · same fee ~ ~ w Humamil w.1;w:r pcpulalion muul fo1i0w Th& V'feHness 1\wt!la The \!lellmJSB fee PIDfVJSal shoot ism Medicare Advanillge). Also, whil& It written and illforna!ion inclij\J&J II I I i • II flum;maViinlliy pvrChased er,plcryoo,; (was) yaun::overed employees be ~ ~ nas partrwred wi~; H&allh Oasigns 11nd h$s agmed ow ilf0po&al is lees will be i<>r lhe Deeigf! es il dt'jl;;mds 011 panicip<l!lon withlll OpiKJ!t5 litlallh I& HRA. llM 8iome!Jlc PIQ\iiilfllS a TM vomdes complele fi,(!),11Jiilt}l when it m~ni'J(JtJfoont are clf>e! tim ;;osl ollhe EngagerneniHeilllJJ to V)i11!lltVIilh ll $50.00 Th\$ ru~j· submit pkr• up preHrnirwry '"""m""'" aml nan! program wrnpoo!l111> until 91\er com;~etion o! a umit ooa re tmly sa>llf19s Q""'~n,o~rm"''" !lltm $600 POf ()()w<;red em;;loyoo. & a Dlvisioo a! ~ ~ ~ i I i Public & !oc" ~ ~ CJ1 ( Gallagher Public & Group RESOLUTION TO BE SUBMITTED 116 COMMISSION ITEM SUMMARY Condensed Title: An Ordinance Amending Ordinance 2006-3504, Miami Beach Employees' Retirement Plan For CWA and Members Not Covered By A Collective Bargaining Agreement, Amending The DROP To Five Years and Eliminating The Buyback Of Prior Creditable Service. Key Intended Outcome Supported: Attract and maintain a Workforce of Excellence. Supporting Data (Surveys, Environmental Scan, etc.) N/A Item SummaryJRecommendation: The City and CWA reached a tentative three (3) year labor agreement covering the time period of October 1, 2012, through September 30, 2015, which included pension changes for current and future members that will effectuate short and long-term pension savings. In an effort to maximize these savings, the Administration is recommending to also apply these changes to those members not covered by a collective bargaining agreement. The pension changes include: the extension of the Deferred Retirement Option Program (DROP) for pre-201 0 members from three to five years and the elimination of the ability to purchase prior creditable service for all applicable members effective September 30, 2013. The extension of the DROP yields saving to the City's ARC because participants are not eligible to receive the annual retiree COLA while in the DROP. In addition, there is a decrease in the actual contribution the City makes for each employee who is participating in the DROP, as they are no longer earning a retirement benefit. On average, there are 157 employees who elect to purchase additional creditable each year. It is important to note that the true actuarial impact is significantly higher than what the member pays for the benefit. The ultimate cost of the prior creditable service purchase provision is measured by the difference between the full actuarial cost of the time purchased and the amount a member pays. The full actuarial cost to purchase the maximum of two years of service to a 45 year old member with ten years of credited service and an annual salary of $60,000 is approximately $38,000; yet pursuant to current provisions, the member pays $12,000. The difference of $26,000 ($4.082 million each year for 157 buybacks) is recognized as an experience loss and is funded by additional City contributions over time. The effect on the Annual Required Contribution (ARC) due to this member's service purchase is an increase of about $2,300, for the first year. Based on trends, the average annual impact of $2,300 per member who exercises a two year prior service purchase represents $361,000 to the City each year for 157 buybacks per year, of which $271,800 is attributed to CWA, Unclassified and Others. This impact is compounded each year that buybacks are allowed. Based on this analysis, eliminating the prior creditable service option will yield significant long~term savings toward the Plan. ust 2012 Financial Information· Source of Amount Funds: 1 FY2012/2013 Impact on salaries attributed to extending the DROP $129.400 FY2013/2014 Reduction to the City's Annual Required Contribution to MBERP represented by 2 ($359,800) $583,500 in pension saving due to DROP extension which is offset by $223,700 in salary increases Reduction to the City's Annual Required Contribution to MBERP payable 3 FY2014/2015 October 1, 2015, represented by $855,300 in pension savings ($583,500 from ($217,500) DROP and $271 ,800 from elimination of buyback), which is offset by $637,800 in salary increases OBPI Total ($447,900) Financial Impact Summary: Cit Clerk's Office Le islative Trackin : Sylvia Crespo-Tabak, Human Resources Director MIAMI BEACH 117 MIAMI BEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov COMMISSION MEMORANDUM TO: Mayor Matti Herrera Bower and Mem FROM: Jimmy L. Morales, City Manager DATE: July 17, 2013 FIRST READING SUBJECT: AN ORDINANCE OF THE MA RAND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, IMPLEMENTING PROVISIONS OF THE 2012-2015 COLLECTIVE BARGAINING AGREEMENT BETWEEN THE CITY AND THE COMMUNICATIONS WORKERS OF AMERICA, (CWA) LOCAL 3178; IMPLEMENTING SIMILAR RETIREMENT PLAN AMENDMENTS FOR MEMBERS WHO ARE NOT INCLUDED IN ANY BARGAINING UNIT; AMENDING THE MIAMI BEACH EMPLOYEES' RETIREMENT PLAN CREATED BY ORDINANCE 2006-3504; AMENDING SECTION 2.26 OF THE PLAN BY EXTENDING THE DEFERRED RETIREMENT OPTION PLAN (PLAN) PROGRAM FROM THREE (3) TO FIVE (5) YEARS FOR ELIGIBLE MEMBERS; AMENDING SECTION 5.13 TO REFLECT AMENDED ELIGIBILITY AND PARTICIPATION REQUIREMENTS AND AMENDED DROP PLAN FEATURES; AMENDING SECTION 4.03 BY ELIMINATING THE PURCHASE OF ADDITIONAL CREDITABLE SERVICE FOR CERTAIN MEMBERS; PROVIDING FOR SEVERABILITY; REPEALING ALL ORDINANCES IN CONFLICT THEREWITH; AND PROVIDING AN EFFECTIVE DATE. ADMINISTRATION RECOMMENDATION The Administration recommends approval of the ordinance amendment on first reading and setting the second reading for a public hearing on September 11, 2013. BACKGROUND In 2010, the Administration negotiated changes to pension benefits for then current and future employees who participate in the Miami Beach Employees' Retirement Plan (MBERP). These changes were included in the labor agreements entered into by the City with the: American Federation of State, County and Municipal Employees (AFSCME), Communications Workers of America (CWA), Local 3178, and Government Supervisors Association of Florida (GSAF). In keeping with the spirit of treating similar groups of employees consistently, these contractual changes were also applied to all members of the Plan not covered by a collective bargaining unit. The changes to MBERP implemented in 2010 included an increase to the employee's pension contribution of two percent. This increase was implemented for the general employee salary groups as follows: Unclassified and Others in January 2010, employees covered by the AFSCME and GSAF collective bargaining units in July 2010, and employees covered by the CWA collective bargaining unit in November 2010. The additional employee contribution remains in effect for incumbents in all salary groups except employees covered by the AFSCME collective bargaining agreement, which expired April 30, 2013, as the provision sunsetted. 118 Commission Memorandum July 17, 2013 MBERP Pension Ordinance CWA 1st Reading Page 2 of 7 The Final Average Monthly Earnings (FAME) increased from two to five years for current (Tier A and Tier B members) and future employees (Tier C members), phasing in those members who were between two and four years from the normal retirement age, so as not to adversely impact them. The change in FAME yielded a reduction of approximately $1.9 million in the City's annual Actuarial Required Contribution (ARC). Gabriel, Roeder and Smith (GRS), the actuary for MBERP, estimated that the change in FAME for all members will yield an annual savings ranging from $1.49 million to $2.275 million per year (approximately 2.12 percent of payroll) each year over the next ten years. Additional pension reform was negotiated for all employees hired after September 30, 2010 (November 2010 for employees whose classifications are covered by the CWA collective bargaining unit). The changes for new employees (Tier C) included: • Normal retirement -Age 55 with a minimum of thirty years of creditable service, or age 62 with a minimum of five years of creditable service. • The early retirement date will be the date on which the member's age plus years of creditable service equals 75, with a minimum age of 55. • The FAME will be an average of the highest five (5) years of employment. • The benefit multiplier will be two and one half percent multiplied by the member's years of creditable service, subject to a maximum of 80% of the member's FAME. • The retiree Cost of Living Adjustment (COLA) will be one and one half percent per year, with the first adjustment deferred to one year after the end of the Deferred Retirement Option Plan (DROP). • The employee contribution will be ten percent of salary. • The standard form of benefit is a lifetime annuity. • Members who separate from City employment with five or more years of creditable service but prior to the normal or early retirement date will be eligible to receive a normal retirement benefit at age 62. • Employees will be eligible to enter the DROP at the normal retirement age specified above and may participate in the DROP for a maximum of five years. (The five year DROP is applicable to those CWA bargaining unit employees who were hired on or after October 27, 2010). The annual savings attributed to the changes for future employees beginning in FY 2011/2012, was approximately $900,000 (1.92 percent of payroll) in savings toward the City's Annual Required Contribution (ARC). GRS estimated that the City would realize an additional annual reduction of seven-tenths percent per year of payroll applied as a reduction towards the City's ARC in perpetuity. These savings will vary from a low of $910,000 in FY2011/2012 to as much as $5.995 million in FY2020/2021. 119 Commission Memorandum July 17,2013 MBERP Pension Ordinance CWA 1st Reading Page 3 of 7 The negotiating teams for the City and CWA began meeting in September 2012, to negotiate a successor agreement since the 2009-2012 collective bargaining agreement expired on September 30, 2012. After 15 negotiation sessions, on June 28, 2013, the City and CWA reached a tentative three year agreement covering the time period of October 1, 2012 through September 30, 2015. Concurrent with this Commission agenda item, the Administration is presenting the proposed three year labor agreement. ANALYSIS The pension changes recently negotiated with CWA are expected to generate a savings toward the City's ARC, as well as savings off the Unfunded Actuarial Accrued Liability (UAAL). The City is still negotiating with AFSCME and GSA and the agreement with CWA is contingent upon negotiating a parallel provision with at least one of the two unions. Given that savings will be greater if changes apply to all members of the Plan, the following pension changes that were negotiated with the CWA will also be implemented for those members not covered by a collective bargaining unit (Unclassified and "Others" salary groups). The City and CWA have agreed to the following: Extension of the Deferred Retirement Option Plan (DROP) A DROP is an arrangement used by many public organizations under which employees who would otherwise retire and collect benefits pursuant to the employer's defined benefit (pension) retirement plan continue working for a fixed number of years. Instead of having the compensation and additional years of service taken into account for purposes of the defined benefit plan formula, the employees have a sum of money, equal to their monthly retirement benefit, credited during their extended employment to an interest bearing account under the employer's retirement plan. No further contributions are made to the employees' pension but as long as they remain in the DROP, they continue earning their full salaries and all other applicable incentive pays, if any. If these employees are not exempt from the provisions of the Fair Labor Standards Act (FLSA) they earn overtime if they work more than 40 hours in one week and they are also eligible for merit increases and/or and salary COLAs that all other employees may receive. When the employees leave at the end of the DROP period, their contributions to the interest bearing account are collected. At that point, they start collecting the monthly benefits they earned based on earlier years of service under the defined benefit plan. During the DROP period, employees are not eligible to receive the retiree COLA. There are two reasons why the DROP yields saving to the City's ARC. The first, is that participants are not eligible for the annual retiree COLA. The second is that there is a decrease in the actual contribution the City makes for each employee in the DROP. Currently, there is a three year DROP for Tier A and Tier B members and a five year DROP for Tier C (post-2010) members. The City and the CWA have agreed to extend the DROP period for Tier A and Tier B (pre-201 0) members from three to five years effective July 17, 2013. 120 Commission Memorandum July 17, 2013 MBERP Pension Ordinance CWA 1st Reading Page 4 of 7 The City intends to extend the DROP period to all pre-2010 members currently participating in the DROP, except for pre-201 0 members covered by the AFSCME and GSA collective bargaining units. Current DROP participants whose period ends between July 17, 2013 and July 16, 2016, shall be given a one-time opportunity to submit an irrevocable amended election form provided by the Board, within thirty calendar days from the effective date of the ordinance, extending their DROP to a maximum of five years. According to GRS, the total estimated impact from extending the DROP period to all pre-201 0 members represents a reduction in the present value of future benefits of approximately $7.8 million. This means the Plan would be expected to pay out $7.8 million less, in today's dollars, to current members of the Plan, (see Attachment 1 ). Based on the Actuarial Impact Statement provided by GRS (Attachment 1 ), the City's ARC payable on October 1, 2014, will be reduced by approximately $778,000. This savings is comprised of a reduction in the amortization payments on the Unfunded Actuarial Accrued Liability (UAAL) of approximately $6.076 million. The reduced payments on the UAAL will decrease the ARC by approximately $540,000 for each of the next 30 years. Additionally, the normal cost will decrease by approximately $238,000, which represents 0.34 percent of total covered payroll for all members or 0.38 percent of Tier A and 8 members' covered payroll. The reduction of 0.38 percent in Tier A and 8 members' covered payroll will continue until all such members have retired. The funded ratio will increase by approximately 0.6 percent. It is estimated that the CWA, Unclassified and "Others" salary groups comprise approximately 75 percent of the MBERP membership. Therefore, it is estimated that the pension changes applicable to these salary groups will yield a savings of $581,250 off the ARC payable on October 1, 2014. The City continues to negotiate with AFSCME and GSAF and one goal is to obtain consistent pension reforms for all of the general employees' salary groups. If successful, the City would realize the full savings of $778,000 from the ARC payable on October 1, 2014. The analysis provided by the pension actuary does not take into account the fiscal impact associated with salary earnings. By extending the DROP to five (5) years, long term employees, earning higher salaries, will remain employed with the City longer, requiring the City to pay their higher salaries for a longer period. New employees would not be hired to fill the positions of those in the DROP; therefore, the City will not have to pay new benefits. Quantifying the fiscal impact from a salary perspective is difficult since there is no true way to forecast assumptions regarding which employees would choose to extend their DROP participation and who would choose to separate earlier. There are 53 members in the MBERP DROP. The following chart illustrates the effect on salaries if the DROP period is extended. To get to these numbers, the salary of each DROP member was compared to the entry level salary of a new incumbent in the classification ultimately affected by the DROP participant's retirement. For example, when a Lifeguard Lieutenant retires, his/her position becomes available to an incumbent in a feeder classification and the domino effect would lead to the City ultimately hiring a new entry level Lifeguard I. In such example, the impact is the difference between the Lifeguard Lieutenant's salary and Lifeguard I entry level salary. For illustrative purposes, the assumption is that all current DROP participants whose period is extended take advantage of the opportunity and remain employed with the City. 121 Commission Memorandum July 17, 2013 MBERP Pension Ordinance CWA 1st Reading Page 5 of 7 Salary Group # Impacted 1 2 0 2 FY 2012/13 # Impacted Elimination of Two Year Past Service Option FY2013/ 14 # Impacted 2 10 3 9 FY2014- 15 TOTALS The CWA agreed to eliminate the provision that permits bargaining unit members to purchase up to two years of prior creditable service effective September 30, 2013, provided that either AFSCME or GSAF agree to a parallel provision in their respective contracts. Currently, any member with five or more years of service can purchase up to two years of creditable service earned prior to the member's date of hire by the City. Such benefit is contingent upon the member not receiving a pension benefit for the same period under another retirement plan (§112.65, Florida State Statutes). Eligible prior service includes: ( 1) military service in the United States Armed Forces or Coast Guard; (2) full-time employment with another governmental entity; or (3) full-time employment in the private sector performing the same or similar duties the member performs for the City at the time of his/her additional service purchase. Members who exercise this option pay ten percent of their annual rate of pensionable earnings multiplied by the number of years and fractions of a year purchased. On average, there are 157 employees who elect to purchase additional creditable service in the MBERP each year. It is important to note that the true actuarial impact is significantly higher than what the member pays for the benefit. The ultimate cost of the prior creditable service purchase provision is measured by the difference between the full actuarial cost of the time purchased and the amount a member pays (e.g., ten percent of pay for each year purchased). The full actuarial cost to purchase the maximum of two years of service to a 45 year old member with ten years of credited service and an annual salary of $60,000 is approximately $38,000; yet pursuant to current provisions, the member pays $12,000. The difference of $26,000 is recognized as an experience loss and is funded by additional City contributions over time. The explanation in the previous paragraph assumes that all actuarial plan assumptions included in the Actuarial Valuation Report are met each year. The effect on the ARC due to this member's service purchase is an increase of about $2,300, for the first year. Based on trends, the average annual impact of $2,300 per member who exercises a two year prior service purchase represents $361 ,000 to the City each year based on an average of 157 buybacks per year, of which $271,800 is attributed to CWA, Unclassified and Others. This impact is compounded each year that buybacks are allowed as shown on the table. 122 Commission Memorandum July 17, 2013 MBERP Pension Ordinance CWA 1st Reading Page 6 of? $271,800 Total $543,600 $815,400 According to GRS, although the elimination of this benefit does result in a financial impact the first year, the effect of eliminating this benefit will provide significant long-term savings to the Plan. Additional Two Percent (2%) Emplovee Pension Contribution The Budget Advisory Committee's Recommendation on Pension Reform Report from August 2012 included recommended policies and guidelines for the City to adopt in order to establish thresholds which, if not met, would require the City to take prompt and appropriate measures to meet the guideline criteria. The July 17, 2013, City Commission Meeting Agenda includes an item from the Finance and Citywide Projects Committee recommending that the Mayor and City Commission adopt the policy guidelines proposed by the BAC. One of the recommended policy guideline statements that addresses recruitment and retention reads as follows, "The City of Miami Beach should strive to provide retirement benefits that ensure that the City is competitive in the recruitment and retention of employees". In addition, the following guideline statement recommended by the BAC to address the management of risk/risk sharing reads as follows, "The City of Miami Beach should strive to share some portion of retirement benefit risk with employees". In 2010, the City negotiated a two percent increase to the pension contribution from all employees hired before that year. This represented an increase for Tier A members (CWA bargaining unit employees hired prior to February 21, 1994), from ten percent to 12 percent of pensionable earnings and an increase from eight percent to ten percent of pensionable earnings for Tier B employees (CWA bargaining unit employees hired on or after February 21, 1994). The actuary for MBERP estimates the value of an additional two percent employee pension contribution by CWA bargaining unit employees to yield an annual savings of approximately $412,626 toward the City's ARC. The additional employee pension contribution implemented in 2010, helped address the increased costs that resulted from the downturn in the stock market that occurred in 2008 and 2009. The Actuarial Valuation Report approved by the MBERP Board in March 2013, indicates that the cost of the Plan represents 40.3 percent of payroll. Although the Plan is still recognizing the impact from the 2008-2009 economic downturn, the recently negotiated pension changes will yield long- term savings. Although it will take time, when the City's ARC reaches 23.5% of pensionable payroll, the City will rescind the additional two percent (2%) pension contribution that was levied on employees covered by the CWA collective bargaining agreement who participate in MBERP and who were hired prior to November 27, 2010. 123 Commission Memorandum July 17, 2013 MBERP Pension Ordinance CWA 1st Reading Page 7 of7 CONCLUSION The leadership negotiating for the CWA has agreed to the aforementioned pension changes. A contract ratification vote for the CWA membership was held on July 15, 2013. The results of the ratification vote resulted in 84 percent of the members who voted in support of the proposed agreement. The agreement was ratified resulting in the membership ratifying the proposed agreement, with 84 percent of the members who voted in support of the agreement. Based on the members who voted for the contract ratification, 84 percent voted in favor of the proposed 2012- 2015 collective bargaining agreement. The results of the membership ratification vote resulted in 84 percent of the members who voted. The Administration recommends amending Ordinance No. 2006-3504, the Miami Beach Employees' Retirement Plan by extending the DROP for pre-201 0 members from three to five years; and eliminating the Two year Past Service Option for members covered by the CWA collective bargaining agreement, as well as the Unclassified and "Others" salary groups. Implementing the described changes for these three (3) salary groups, will provide additional pension savings in the short and long term. The City will continue to bargain with AFSCME and GSAF and seek pension savings applicable to all plan members. GRS prepared an Actuarial Impact Statement to be submitted to the State of Florida Division of Retirement which reflects the proposed changes to the MBERP ordinance for all Plan members. Should the City Commission approve the ordinance on first reading, the Actuarial Impact Statement will be submitted to the State of Florida Division of Retirement prior to second reading for review and approval. Should the City not reach agreement with AFSCME and GSAF regarding parallel pension reform in their respective labor contracts, the Actuarial Impact Statement will have to be amended accordingly. Based on the foregoing, the Administration recommends that the City Commission approve the ordina~n first reading and set a public hearing, second reading on September 11, 2013. JLM/K;lsc-T/CMG T:\AGENDA\2013\July 17\CWA\CWA 2012-2015 Labor Agreement Pension Memo.docx 124 July 15, 20B Ms. Carla Gomez Assistant Director, Human Resources City ofMiami Beach 1700 Convention Center Drive Miami Beach, Florida 33139 One East Browa:rd Blvd. Suite 505 Ft Lauderdale, FL 33301·1804 Rc: Actuarial Impact Statement for Proposed Changes to the Dear Carla: M 954527.1616 phone 954.525.0083 fax As requested, we have prepared the enclosed Actuariallmpact Statement showing the financial effect of the following proposed changes to the Miami Beach General Employees' Retirement System: 1. The maximum period for participation in the Deferred Retirement Option Program (DROP) would be extended from three to five years for members hired before October I, 2010 (i.e., Tier A and Tier B members). This extension would apply to all active members in Tiers A and B who elect to participate in the DROP in the future as well as current DROP members. The 2.5% COLA is not payable while members are in the DROP. 2. The option for members to purchase up to of credited service would be eliminated. The Statement must be filed with the Division of Retirement before the final public hearing on the ordinance. Please have a member ofthe Board of Trustees sign the Statement. Then send the Statement along with a copy of the proposed ordinance to Tallahassee. With to item 2 above, the employer portion of the cost for members to purchase service is not prefunded. Therefore, eliminating the service purchase provision "'ill not have an immediate financial effect on the Plan. When we prepare our annual valuation, any increases to the liability due to purchased during the previous year are reflected in the net gain/loss for the year, which is amortized over 30 years. ultimate cost ofthe current service purchase provision is measured by the difference between the full actuarial cost of the service purchased and the amount that members pay to purchase service 10% of pay for each year purchased). As an example, the full actuarial cost to purchase the maximum of2 years of service for a member who is currently age 45 with l 0 years of credited service and an annual salary of $60,000 is $38,000. Under the current provisions, the member pays $12,000. The difterence of $26,000 is funded by additional City contributions over time. In this the effect on the annual required contribution due to the service purchase is an increase of about $2,300 for the first year. This assumes that all of our actuarial assumptions as described in the October l, 2012 Actuarial Valuation are met each year. The on the total gain/loss varies each year depending on the demographics and the specit1c benefit provisions that apply to members who purchased service. Eliminating the service purchase provision w!U mean that any losses due to service purchases will not occur in years. Please however, that there will likely be due to service purchases in fiscal year ending September 30,2013 that win be in the October 1, 2013 Actuarial Valuation, elimination of the service purchase provision will not be effective until September 30, 2013. 125 1 Ms. Carla Gomez July 15, 2013 Page 2 " " of Findings The present value offuture benefits decreases by approximately $7.8 million. The Plan would be expected to pay out $7.8 minion less, in today's dollars, to current members ofthe Plan. This can be viewed as the total cost impact due to the extension of the DROP if the actuarial assumptions are met each year. There is a decrease in the first year Annual Required Contribution for the City that is comprised of a reduction in the amortization payments on the Unfunded Accrued Liability and a reduction in the normal cost. The Unfunded Accrued Liability decreased by approximately $6.1 million. This reduction will decrease the annual required contribution by approximately $540,000 each of the next 30 years. The first year normal cost will decrease by approximately $238,000 which is 0.34% of total covered payroll (0.38% of Tier A and B member covered payroll). The reduction of0.38% of Tier A and Tier B member covered payroll will exist until all Tier A and Tier B members have retired. The first year required employer contribution would decrease by approximately $778,000 or 1.19% ofNon-DROP payroll. The funded ratio will increase from 66.1% to 66.7%. Other Cost Considerations • As ofOctober l, 2012 the Market Value of Assets exceeds the Actuarial Value by $2.07 million. This difference wm be recognized over the next several years. Once all the gains and losses through September 30, 2012 are fully recognized in the Actuarial Value of Assets, the contribution rate will decrease by roughly 0.3% of non-DROP payroll unless there are further gains or losses. Additional Disclosures This report was prepared at the request of the City with the Board's permission and is intended. for use the City and the Retirement Pian, and those designated or approved by them. This report may be provided to parties other than the City and Retirement Plan only in its entirety and only with their permission. This is intended to describe the financial effect of the proposed plan changes. No statement in this report is intended to be interpreted as a recommendation in favor of the changes, or in opposition to them. This report should not be relied on for any purpose other than the purpose described above. The calculations in this are based upon information furnished by the Plan Administrator for the October 1, 2012 Actuarial Valuation concerning Plan benefits, financial transactions, plan provisions and active members, terminated members, retirees and beneficiaries. We reviewed this information for internal and year-to-year but did not otherwise audit the data. We are not responsible for the accuracy or completeness of the information provided by the Plan Administrator. The calculations are based upon assumptions regarding future events, which may or may not materialize. They are also based on the assumptions, methods, and plan provisions outlined in this report. Future actuarial measurements may differ significantly from the current measurements presented in this report due to such factors as the following: 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 these measurements (such as the end of Gabriel Roeder Smith & Company 126 Ms. Carla Gomez July 2013 3 an amortization period or additional cost or contribution requirements based on the plan's funded and changes in plan provisions or applicable law. If you have reason to believe the assumptions that were used arc unreasonable, that the plan provisions are incorrectly described, that important plan provisions relevant to this proposal are not described, or that conditions have changed since the calculations were you should contact the author of the report prior to relying on information in report. The actuaries are members ofthe American Academy of Actuaries and meet the Qualification Standards of the American Academy of Actuaries to the actuarial opinions contained herein. The undersigned are independent of the plan sponsor. This report 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 Plan as ofthe valuation All calculations have been made in conformity with generally accepted actuarial principles and practices, and with the Actuarial of Practice issued by the Actuarial Standards Board and with applicable statutes. Respectfully submitted, Copy: Rick Rivera 127 SUPPLEMENTAL ACTUARIAL VAI,UATION REPORT Phm City of Miami Beach Employees' Retirement Plan Valuation Date October 1, 2012 Date of Report July 15,2013 Report Requested by City of Miami Beach Prepared by Melissa R. Algayer Group Valued All active and inactive members. Plan Provisions Being Considered for Change Present Plan Provisi_Qns Before Chan_ge 11 Members hired before October 1, 2010 (i.e., Tier A and Tier B members) who become eligible for normal retirement may participate in the Deferred Retirement Option Program (DROP) for up to three years. The annual cost-of-living adjustment (COLA) of2.5% is not payable while members are in the DROP. 11 Members who have five or more years of service may elect to purchase up to two years of additional credited service at any time prior to retirement. Members who elect to purchase such service pay 10% of the annual rate of compensation multiplied by the number of years purchased. Proposed Plan Changes • M(.•:mbers hired before October 1, 2010 (i.e., Tier A and Tier B members) who become eligible for nonnal retirement may participate in the Deferred Retirement Option Program (DROP) for up to five years. Members currently participating in the three-year DROP may also continue participation for an additional two years (five years total). The annual COLA of 2.5% is not payable while members are in the DROP. 11 The optional service purchase pro'<ision would be eliminated. 128 2 Participants Affected The extension of the DROP participation period would apply to members hired prior to October 1, 2010 (i.e., Tier A and Tier B members) who become eligible for normal retirement and current members participating in the DROP as the effective date ofthe amending ordinance. Elimination of the optional service purchase provision would apply to aU active members after the effective date of the amending ordinance. Actuarial Assumptions and Methods To measure the impact of extending the DROP, the assumed COLA delay was increased from 2.75 years to 4 years for active Tier A and Tier B members. Additionally, the COLA delay was increased from 3 years to 5 years for members currently participating in the DROP. All other assumptions and methods are the same as shown in the October 1, 2012 Actuarial Valuation Report. Some of the key assumptions/methods arc: Investment return-8.0% per year Salary increase -4.5% to 7.0% depending on service Cost Method -Entry Age Normal Cost Method Amortization Period for Any Change in Actuarial Accrued Liability 30 years. Summary of Data Used in Report Same as data used in October 1, 2012 Actuarial Valuation Report. Actuarial Impact of Proposal(s) See attached page(s). Extending the DROP from three to five years will decrease the first year annual required contribution by $778,439 or 1.19% ofNon-DROP payroll. Since the employer portion of the cost for members to purchase service is not prefunded, eliminating the optional service purchase provision would not have an immediate financial effect on the Plan. Special Risks Involved With the Proposal That the Plan Has Not Been Expo!;ea to Previously None Other Cost Considerations As of October 1, 2012 the Market Value of Assets exceeds the Actuarial Value by $2.07 million. This difference will be recognized over the next several years. Once all the gains and losses through September 30, 2012 are fully recognized in the Actuarial Value of Assets, the contribution rate will decrease by roughly 0.3% of non-DROP payroll unless there are further or losses. 129 3 CITY OF MIAMI BEACH EMPLOYEES' RETIREMENT PLAN Impact Statement-July 15, 2013 Description of Amendment The proposed ordinance incorporates the following plan changes: 1. The maximum period for participation in the Deferred Retirement Option Program (DROP) would be extended from three to five years for members hired before October 1, 2010 (i.e., Tier A and Tier B members). This extension would apply to all active members in Tiers A and B who elect to participate in the DROP in the future as well as current DROP members. The 2.5% COLA is not payable while members are in the DROP. 2. The option for members to purchase up to 2-years of credited service would be eliminated. Funding Implications of Amendment Se attachments. Certification of Administrator I believe the amendment to be in compliance with Part VII, Chapter 112, Florida Statutes and Section 14, Article X of the Constitution of the State of Florida. For the Board ofTrustees as Plan Administrator 130 ANNUAL RJ!:QUlRED CONTRIBUTION (ARC) A Valuation Date B. ARC to Be Paid During Fi<:cal Year Ending c Assumed Date Contrih. D. Annual Payment to Amortize Unfi.mded Actuarial Liability E. Employer Normal Cost F. ARC if Paid on the Valuation Date: D+E G. ARC Adjusted ±or Frequency of H. ARC as % of Covered Payroll -Non-DROP Payroll -Total Payroll L Covered Payroll for Contribution Year -Non-DROP Payroll -Total $ October I, 2012 VtJluation 9/30/2014 10/l/2013 17,184,796 7,085,589 26,212,016 40.29 % 37.56 % 131 October I, 2012 Extend Three to Five Years 10/l/2013 $ 16,685,042 6,864,566 23,549,608 25,433,577 39JO % 36.45 % 65,053,945 69,782,689 4 Increase/ $ (499,754) (22 19)% 11)% ACT'llARIAL VALUE OF BENEFIT'S AND ASSETS A Valuation Date B. Actuarial Present Value of All Benefits for I. Active Members a. Service Retirement Benefits b. Benefits c. Benefits d. Preretirement Death Benefits e. R.etum of Member Contributions f. Total 2. Inactive Members a. Service R.etirees & Beneficiaries b. Retirees c. Terminated Vested Members d. Total 3. Total fix All Members C Actuarial Accrued Service) per GASB Ko. 25 D. Plan Assets 1. Market Value 2. Actuarial Value E. Unfunded Actuarial Accrued F. Funded Ratio G. Actuarial Present Value of Covered H. Actuarial Present Value of Member Contributions $ October 1, 2012 Valuation 741 66.1 % 5 132 October 1, 2012 E~xtend Three to Five Years $ 631 66.7 % 51 5 Increase/ $ 0) 0) 0.6 % CALCULA110N OF EMPLOYER NORMAL COST A Valuation Date B. C. D. Normal Cost for L Service Retirement Benefits 2. Benefits 3. Benefits 4. Preretirement Death Benefits 5. Retum of Member Contributions 6. Total tor Future Benefits 7. Assumed Amount for Administrative 8. Total Nonnal Cost """"''"'r•tcorl Member Contribution %of Covered -Non-DROP -Total -Including DROP October 1, 2012 Valuation $ 133 20.89% 19.47% 10.00 % 9.32% 10.89% 10.15% October 1, 2012 Extend DROP Three to Five Years $ 20.5.5 % 19.16% 10.00%, 9.32% 10.55 % 9.84% $ 6 Increase/ (221 % 1)% 0.00 % 0.00 % PAR'HCIPANT DATA Number Covered Annual Non-DROP Total Covered Annual OP PARTICIPANTS Number BENEFICIAUlES Number Annual Benefits Annual Benefit DISAlULITY RETIREES Number Annual Benefits TERMINATED VESTED .M .. EMBERS Number 134 October 1, 2012 October 1, 2012 $ $ $ $ $ $ $ $ $ $ $ $ Valuation Extend 7t!ree to Five Years 45.1 9.8 35.3 55 59.3 71.1 43 ] '117, 160 65.6 63 $ $ $ $ $ $ $ $ 1,1 45.1 9.8 35.3 55 59.3 71.1 43 65.6 63 45.9 7 MIAMI BEACH EMPLOYEES' RETIREMENT PLAN (MBERP) AMENDMENT TO APPLICATION-AGREEMENT FOR DEFERRED RETIREMENT OPTION PLAN (DROP) Department _____________ ___ Social Security# ___ ~ __ ~ ___ _ Date of Birth __ / __ / ___ _ MO. Date Year I hereby elect to make a one-time irrevocable amendment to the Application/Agreement for Deferred Retirement Option Plan that I executed on [Month-Day-Year]. All terms and conditions of the Application/Agreement for Deferred Option Retirement Plan I previously executed shall remain in full force and effect, except as otherwise provided below. PARTICIPATION IN THE DROP IS IRREVOCABLE. In accordance with the provisions of the laws governing the operation of the Miami Beach Employees' Retirement Plan in the City of Miami Beach, I hereby make a voluntary one-time, irrevocable application, to extend my participation in the DROP to a maximum of sixty (60) months from my effective retirement date. I understand that my earnings and service with the City while participating in the DROP will not be used to determine my pension benefit. I may not discontinue my participation in the DROP except in accordance with its provisions. I understand that my participation in the DROP is not an implied contract for continued service or employment with the City. The DROP shall be administered in accordance with the Miami Beach Employees Retirement Plan Pension Ordinance section 5.13. All moneys in the Fund will continue to be invested according to the Investment Guidelines adopted by the Board, which are subject to revision from time to time. The DROP is meant to comply with the provisions of the Internal Revenue Code and the Board will take no action which may jeopardize the qualification of the Fund. I understand the pay out of my DROP account may be deferred and may not be paid out according to my request, if doing so would jeopardize the Fund's Internal Revenue Service tax qualification or if doing so, in the sole opinion of the Board, violates the Internal Revenue Code. I understand that extending my DROP participation to a maximum of sixty (60) months from my retirement date will not amend my retirement date from the Fund, which became effective on [Month-Day-Year] _________ , the date that I originally entered the DROP, and will continue to remain ineligible to receive any pre-retirement benefits from the Fund, including but not limited to disability or death benefits. I understand that this one-time, irrevocable amended Agreement only serves as an election to extend my participation in the DROP to a maximum of sixty (60) months from my retirement date. The effective date of my DROP participation shall remain concurrent with my effective retirement date. I agree that my participation in the DROP will not extend beyond [Month-Day-Year] , which is no more than 60 full months of my effective retirement date, and that my City employment will terminate at the conclusion of the DROP period. (THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK) One-Time Irrevocable Amendment to DROP Application/Agreement 135 MIAMI BEACH EMPLOYEES' RETIREMENT PLAN (MBERP) AMENDED ONE-TIME, IRREVOCABLE ELECTION AGREEMENT FOR EXTENSION OF PARTICIPATION IN THE DEFERRED RETIREMENT OPTION PLAN (DROP) Signature of Applicant Date State of ----------------- County of _______ _ Sworn to and subscribed before me on this ___ day of _________ ,, 20 __ . (Signature of Notary Public) *Notary may not be related to affiant by blood or marriage. (Print, Type or Stamp Commissioned Name of Notary Public) Personally Known to me, or Produced the following identification: (Type of Identification and ID# if applicable) One-Time Irrevocable Amendment to DROP Application/Agreement 136 ORDINANCE TO BE SUBMITTED 137 THIS PAGE INTENTIONALLY LEFT BLANK 138 COMMISSION ITEM SUMMARY Condensed Title: An Ordinance Amending Ordinance No. 789, The Classified Employees Salary Ordinance Of the City of Miami Beach Increasing The Pay Range For Lifeguards II And Lifeguard Lieutenants By 11 Percent And Provide For A Three Percent Cost Of Living Adjustment (COLA) For All Classifications Covered By The Communications Workers of America (CWA) Local 3178, And Adjusting The Minimum And Maximum Of Each Pay Range Accordingly. Key Intended Outcome Supported: Attract and maintain a Workforce of Excellence. Supporting Data (Surveys, Environmental Scan, etc In the past six years, there have only been two COLAs extending the minimum and maximum of the salary ranges. Item Summary/Recommendation: After 15 negotiation sessions, the City and CWA reached a tentative three (3) year labor agreement covering the time period of October 1, 2012, through September 30, 2015. In this agreement, the City agreed to extend the pay range for the Lifeguards II and Lifeguard Lieutenants by 11 percent, effective October 1, 2012. The agreement was based on the fact that the same had been done for all other CWA bargaining unit classifications through the 2003-2006 contract and was not done for the Lifeguards covered by the CWA bargaining unit in the 2009-2012 contract when longevity was eliminated. The 11 percent increase extends the range to incorporate what would have otherwise been automatic longevity increases. The City also agreed to a three percent COLA for all CWA bargaining unit employees effective the first pay period ending in October 2014, adjusting the minimum and maximum of each pay range accordingly. Advisory Board Recommendation: I N/A Financial Information; Amount Source of Funds: 1 FY2012/2013 ($0) FY2013/2014 Cost of extending the pay range for the Lifeguards II and Lifeguard 2 $7,000 Lieutenants by 11 percent. 3 FY2014/2015 Cost of extending the pay range for the Lifeguards II and Lifeguard $759,000 Lieutenants by 11 percent and three percent salary COLA. OBPI Total $766,000 Financial Impact Summary: Extending the pay range for the Lifeguards II and Lifeguard Lieutenants by 11 percent results in pay equity among CWA bargaining unit classifications. The three percent COLA provides a needed amendment to the salary ranges to provide for a fair and internally and externally competitive compensation system. Cit Clerk's Office le islative Trackin : Sylvia Crespo-Tabak, Human Resources Director Si n-Offs: Assistant City Manager City Manager Jimmy L. Morales DA\2013\July 17\CWA\CWA 2012-2015 Salary Ordinance Summary.doc (9 MIAMI BEACH 139 MIAMI BEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, wvvw.miamibeachfl.gov COMMISSION MEMORANDUM TO: Mayor Matti Herrera Bower and Me FROM: City Manager Jimmy L. Morales DATE: July 17, 2013 SUBJECT: AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AMENDING ORDINANCE NO. 789, THE CLASSIFIED EMPLOYEES SALARY ORDINANCE OF THE CITY OF MIAMI BEACH, FLORIDA, AS FOLLOWS: PROVIDING FOR THE CLASSIFICATIONS IN GROUP IV, REPRESENTED BY THE COMMUNICATIONS WORKERS OF AMERICA (CWA) LOCAL 3178, IN ACCORDANCE WITH THE NEGOTIATED COLLECTIVE BARGAINING AGREEMENT, EFFECTIVE OCTOBER 1, 2012, THERE SHALL BE AN INCREASE OF ELEVEN PERCENT (11%) TO THE MAXIMUM WAGE FOR THE CLASSIFICATIONS OF LIFEGUARD II AND LIFEGUARD LIEUTENANT; EFFECTIVE THE FIRST PAY PERIOD ENDING IN OCTOBER OF 2014, THERE SHALL BE AN ACROSS THE BOARD COST-OF-LIVING ADJUSTMENT (COLA) OF THREE PERCENT (3%), AND THE MINIMUM AND MAXIMUM OF EACH PAY RANGE WILL ALSO BE INCREASED BY THREE PERCENT (3%); REPEALING ALL ORDINANCES IN CONFLICT; PROVIDING FOR SEVERABILITY, AN EFFECTIVE DATE AND CODIFICATION. RECOMMENDATION The Administration recommends the City Commission approve the ordinance on first reading and set the ordinance for second reading on September 11, 2013. BACKGROUND The City of Miami Beach has the following five (5) classified employee groups that are represented by bargaining units: • Group I -Represented by the American Federation of State, County and Municipal Employees (AFSCME) Local 1554; • Group II-Represented by the Fraternal Order of Police (FOP) William Nichols Lodge No.8; • Group Ill -Represented by the International Association of Firefighters (IAFF) Local 1510; • 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, Local100. 140 City Commission Memorandum July 17, 2013 CWA Classified Salary Ordinance Page 2 of 4 • Group Ill -Represented by the International Association of Firefighters (IAFF) Local 151 0; • 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, Local100. In addition, the City has one classified employee group, Group VI, comprising all other classifications in the classified service not covered by a bargaining unit. This group is commonly referred to in the City of Miami Beach as "Others". There is a seventh salary group comprised of at-will employees commonly referred to as Unclassified. In the 2003-2006 CWA collective bargaining agreement, the parties eliminated the longevity pay and the step plan system, and implemented the pay for performance system in order to provide savings to the City. The pay for performance system was applicable to all CWA bargaining unit classifications except the Lifeguards I and II and Lifeguard Lieutenants. They remained on the longevity pay and step plan system. Conversion to the pay for performance salary ranges resulted in an eleven percent increase to the maximum wage of all CWA bargaining unit classifications to capture wages they would have otherwise earned through longevity. Because the Pool Guards II and the Lifeguards I share a salary code, an unintended consequence was that the range for the Lifeguard I was also increased accordingly. In 2010, the City and CWA reached an agreement to amend the prior three-year (2006- 2009) collective bargaining agreement. The successor three-year agreement was approved by CWA bargaining unit members and ratified by the City Commission on October 27, 2010. In order to attain the Commission's goal of approximately $15 million in savings from employee concessions from all salary groups applicable toward FY 2009/10 and FY 2010/11, the agreement with CWA contained the following provisions as cost savings components: • No cost-of-living adjustments (COLAs) for the first two and one-half (2 }'2) years of the agreement; • Commencing October 1, 2010, no merit increases for CWA bargaining unit employees; • Effective September 30, 2012, provisions related to EMT certification (a five percent supplement) and longevity steps for the Lifeguards I and II and Lifeguard Lieutenants ceased. This last concession, the sun setting of the EMT certification supplement and longevity steps without a concurrent extension of the salary ranges resulted in some incumbents losing as much as 16 percent of their pay. 141 City Commission Memorandum July 17, 2013 CWA Classified Salary Ordinance Page 3 of4 An across the board COLA of three percent for all CWA bargaining employees was negotiated, effective with the first full pay period ending in April of 2012 (approximately six months into FY 2011 /12). Accordingly, as stipulated in the collective bargaining agreement, the minimum and maximum of each corresponding CWA pay range was raised concurrently. ANALYSIS Based on the terms negotiated between the City and CWA for the 2012-2015 collective bargaining agreement, the Administration recommends increasing the maximum of the range for Lifeguards II and Lifeguard Lieutenants by 11 percent, effective October 1, 2012; implementing a three percent across the board COLA, effective the first pay period ending October of 2014, for all CWA bargaining unit employees, providing for an increase to the minimum and maximum of each CWA pay range correspondingly by three percent; increasing the base salaries for Lifeguard I and II and Lifeguard Lieutenants who were receiving the longevity pay supplement and/or EMT pay supplement on September 29, 2012, and amending Ordinance No. 789, the Classified Employees Salary Ordinance of the City of Miami Beach, Florida accordingly. The ordinance amendment will ensure the City has an employee classification and compensation system that is reasonable and competitive. Increasing the maximum of the range for the Lifeguards II and Lifeguard Lieutenant classifications will provide parity with all other classifications within the bargaining unit, which received the eleven percent increase to the maximum of their respective classification ranges pursuant to the 2003- 2006 collective bargaining agreement. Increasing the base salaries of Lifeguard I and II and Lieutenants who were receiving the longevity supplement is estimated to have an impact of $137,000 per year, while the impact of the EMT supplement is $116,000. The increase of the maximum wage for the Lifeguard II and Lifeguard Lieutenant classifications by 11 percent effective October 1, 2012, represents an estimated cost of $7,000 in FY 2013/14; and $13,000 in FY 2014/15. The three percent (3%) COLA, effective October 1, 2014, represents an impact of approximately $7 46,000 to the City's FY 2014/15 operating budget. The estimated figures do not take into consideration current turnover rates or vacant positions; however, we anticipate the impact of such to be minimal. CWA bargaining unit employees who separate from employment with the City prior to the date of implementation of the COLA, effective the first full pay period ending in October of 2014, will not be eligible to receive the COLA increase. CONCLUSION The Administration recommends amending Ordinance No. 789, the Classified Employees Salary Ordinance of the City of Miami Beach, Florida, by increasing the maximum wage for the Lifeguard II and Lifeguard Lieutenant classifications by 11 percent effective October 1, 20 12; and approving a three percent COLA, effective the 142 City Commission Memorandum July 17, 2013 CWA Classified Salary Ordinance Page 4 of 4 first pay period ending October of 2014, increasing the minimum and maximum of each CWA bargaining unit classification pay range correspondingly by three percent. Based on the foregoing, the Administration recommends that the City Commission approve the proposed ordinance on first reading and set ordinance for second reading o eptember 11, 2013. T:\AGENDA\2012\4-11-12\COLA-CWA MEMO CLASSIFIED EMPLOYEES.doc 143 ORDINANCE TO BE SUBMITTED 144 COMMISSION ITEM SUMMARY Condensed Title: A Resolution ~f the Mayor And City Commission of the City of Miami Beach, Florida, Ratifying a Three-year Labor Agreement Between the City of Miami Be'ach and the Communications Workers of America, Local 3178 (CWA), for the period beginning October 1, 2012, through September 20, 2015, and authorizing the Mayor and Clty Clerk to execute the Agreement. Key Intended Outcome Supported: Attract and maintain a Workforce of Excellence. Supporting Data (Surveys, Environmental Scan, etc During the October 1, 2009-September 30, 2012, collective bargaining process the parties negotiated changes that resulted in employee givebacks of over $15 million between Fiscal Year (FY) 2009/2010 and FY 2010/2011 and $20 million when you include FY 2011/2012 (Unclassified and Others, although not represented by a union, also contributed to the employee giveback total). These givebacks included a number of pension changes applicable to current and future employees who participate in the Miami Beach Employees' Retirement Plan (MBERP) and resulted in reducing the City's pension contributions for the short and long-term. In the past six years there have only been two cost of living adjustments (COLA) extending the minimum and maximum of the ranges Item Summary/Recommendation: After 15 negotiation session, the City and CWA reached a tentative three-year labor agreement covering the time period of October 1, 2012, through September 30, 2015. In this agreement, employee concessions include: a zero COLA for24 months and a freeze on merit increases for 12 months. As a result of these negotiations, the City agreed to: a three percent COLA effective the first pay period in October 2014; eligibility for a three percent merit increase on or after October 1, 2013; eligibility for a three percent merit increase on or after October 2014; and a reduced merit increase eligibility of two percent for future merit increases, if any. The parties have also agreed to pension plan changes applicable to current and future bargaining unit employees. The two year past service purchase option will be eliminated effective October 1, 2013, contingent upon at least one of the other two unions with whom the City is still negotiating and whose members participate In MBERP, agreeing to a parallel provision. Furthermore, effective July 17, 2013, the City agreed to extend the Deferred Retirement Option Plan (DROP) from three to five years for bargaining unit members hired prior to September 2010. The CWA president reported that the contract was ratified by 84 percent of the members who voted July 15, 2013. The value of this proposal is estimated to result in a cost impact of $1.8 million through the term of the agreement. Financial Information: Amount Account Source of Making Lifeguards I and II and Lifeguard Lieutenants whole Funds: 1 FY2012/2013 (longevity/EMT) which is ameliorated by savings from FY2012/13 no $113,500 merit increases; salary impact of extending the DROP from three to five years. FY 2012/13 cost impact, three percent merit eligibility, eleven percent 2 FY2013/2014 extension of the salary range for Lifeguard II and Lieutenants, shift $366,110 differential, holiday pay, union time bank 3 FY2014/2015 from FY 2013/14 cost impact, three percent merit eligibility and three $1,343,090 _percent COLA OBPI Total $1,822,700 Financial Impact Summary: Costs associated with new economic terms and conditions of employment are counterbalanced by concessions made in prior years which remain in effect (e.g. application of FLSA} and concessions regarding MBERP. Citv Clerk's Office Legislative Tracking: Sylvia Crespo-Tabak, Human Resources Director Assistant City Manager City Manager MlAMIBEACH AGENDA ITEM DATE4J'l rJ1 ZS:j1 145 ~ MIAMI BEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov COMMISSION MEMORANDUM TO: Mayor Matti Herrera Bower and M DATE: July 17, 2013 SUBJECT: A RESOLUTION OF THE MAYO AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, RATIFYING A THREE (3) YEAR LABOR AGREEMENT BETWEEN THE CITY OF MIAMI BEACH AND THE COMMUNICATIONS WORKERS OF AMERICA, LOCAL 3178 (CWA), FOR THE PERIOD FROM OCTOBER 1, 2012 THROUGH SEPTEMBER 30, 2015; AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE THE AGREEMENT. ADMINISTRATIVE RECOMMENDATION Adopt the Resolution. BACKGROUND The City's workforce is divided into seven salary groups: (1) those covered by the American Federation of State, County and Municipal Employees, Local 1554 (AFSCME) bargaining unit; (2) those covered by the Communications Workers of America, Local 3178 (CWA) bargaining unit; (3) those covered by the Government Supervisors Association of Florida/OPEIU, Local 100 (GSA) bargaining unit; (4) those covered by the Fraternal Order of Police, William Nichols Lodge No. 8 (FOP) bargaining unit; (5) those covered by the International Association of Fire Fighters, Local 1510 (IAFF)bargaining unit; (6) Unclassified; and (7) "Others" (classified service employees not represented by a bargaining unit). During the October 1, 2009 -September 30, 2012, collective bargaining process the parties negotiated changes that resulted in employee givebacks of over $15 million between Fiscal Year (FY) 2009/2010 and FY 2010/2011 and $20 million when you include FY 2011/2012 (Unclassified and Others, although not represented by a union, also contributed to the employee giveback total). These givebacks included a number of pension changes applicable to current and future employees who participate in the Miami Beach Employees' Retirement Plan (MBERP) and resulted in reducing the City's pension contributions for the short and long-term. Pension changes for the City Fund for Firefighters and Police Officers in the City of Miami Beach (Fire and Police Pension Plan) were negotiated for implementation in 201 0; however, they were insufficient to address the short-term and increasing benefit cost which, in recent years, has represented the fastest growing cost in the City's budget. Based on the current draft valuation for the Fire and Police Pension Plan and the adopted valuation 146 City Commission Memorandum July 17,2013 CWA 2012-2015 Ratified Collective Bargaining Agreement Page 2 of 7 for the MBERP, the City's annual required contribution (ARC) toward both plans is estimated at $67.7 million (this represents an increase of $2.2 million in the Fire and Police Pension Plan and an increase of $5 million in MBERP). In the adopted FY 2012/13, budget, employee givebacks represented $3.782 million in savings (approximately $3 million in the General Fund) which were to be allocated among the seven salary groups. The methodology to allocate the givebacks for each salary group was the proportionate share of the City's total costs for pension and health benefits for FY 2012/13, as in recent years these have been major personnel expenditure cost drivers. To date, some level of givebacks have been achieved only for CWA, Unclassified and "Others" salary groups, through merit freezes for employees in these salary groups. OCTOBER 1, 2009-SEPTEMBER 30, 2012. COLLECTIVE BARGAINING AGREEMENT The CWA collective bargaining agreement for October 1, 2009, through September 12, 2012, contained compensation and benefit changes that on September 30, 2012, resulted in a 16 percent salary reduction for some individual bargaining unit members. Some of the CWA bargaining unit employee concessions that differed significantly from the compensation and benefits negotiated by the other collective bargaining units during the same contract period include: • Overtime Pay-Effective October 1, 2010, only actual hours worked, as defined by the Fair Labor Standards Act (FLSA), are considered for the purposes of computing overtime. CWA is the only collective bargaining unit whose overtime compensation is based on adherence to the FLSA. • Holiday Pay -Effective October 1, 2010, holiday pay was reduced from double-time-and-a half to time-and-a-half, inclusive of pay for time worked, for employees working on the holiday. Employees who did not work on the holiday continued to get paid for the holiday. • Longevity Pay -Prior to October 1, 2010, all Lifeguards I, Lifeguards II and Lifeguard Lieutenants were in the City's Automatic Step Pay Plan System, therefore, eligible to receive longevity pay, an additional, permanent, percentage-based increase based on their earnings and years of service. Effective October 1, 2010, all Lifeguards I and II and Lifeguard Lieutenants were placed in the City's Pay for Performance System and on September 30, 2012, the longevity pay supplement was eliminated. When the longevity pay supplement ceased for the Lifeguard classifications on September 30, 2012, the dollar equivalent was not added to their base pay and the maximum of the range was only extended for Lifeguards I. In contrast, in March 2006, when the pay supplement was eliminated for all other CWA bargaining unit employees, the maximum of the ranges were extended by 11 percent to incorporate the value of the longevity pay supplement. By extending the ranges by 11 percent the dollar equivalent of the longevity pay supplement was added to the base pay in 2006. • Emergencv Medical Technician (EMTJ Certification Pay-The five percent EMT certification pay was eliminated for all Lifeguards I, Lifeguards II, Lifeguard Lieutenants, Pool Guards I 147 City Commission Memorandum July 17,2013 CWA 2012-2015 Ratified Collective Bargaining Agreement Page 3 of 7 and Pool Guards II effective September 30, 2012. EMT certification pay is still provided to qualifying employees covered by GSAF and IAFF. • Shift Differential -Effective October 1, 2010, the shift differential incentive pay, (which ranged from $.45 to $.55 per hour, for the afternoon and the midnight shift, respectively) was eliminated. This incentive pay is still provided to qualifying employees covered by GSAF, AFSCME, IAFF and FOP. • Cleaning Allowance-Effective October 1, 2010, the uniform cleaning allowance supplement was eliminated for all CWA bargaining unit members. Currently, qualifying employees covered by IAFF and FOP continue to receive this supplement. ANALYSIS CWA's portion of the $3.782 million in employee givebacks for FY 2012/13 was $417,000. Upon expiration of the 2009-2012 collective bargaining agreement, September 30, 2012, the status quo provision concerning wages reflected a freeze on merit increases for all CWA bargaining unit employees until the parties collectively bargained a successor agreement that included wage increases or merit pay. The FY 2012/13 budget anticipated a savings of $250,000 from the merit freeze for CWA bargaining unit employees. On September 30, 2012, the 2009-2012 CWA collective bargaining agreement expired. The City and CWA began meeting in September 2012, to negotiate a successor agreement. After fifteen sessions, on June 28, 2013, the City and CWA reached a tentative three-year agreement covering the period October 1, 2012, through September 30, 2015. The CWA leadership held a ratification vote on the proposed agreement on Monday, July 15, 2013. As per the attached letter from the CWA President, Richard McKinnon, the agreement was ratified by 84 percent of the members who voted. (Attachment 1) The following is a summary of the tentative agreement. The entire tentative collective bargaining agreement is provided as Exhibit A to this memorandum. • Cost of Living Adjustment (COLA) • Effective October 1, 2012, there will be no across-the-board wage increases. • Effective October 1, 2013, there will be no across-the-board wage increases. • Effective October 1, 2014, there will be a three percent (3%) across-the-board wage increase that will extend the minimum and maximum of the salary ranges for all classifications covered by the CWA bargaining unit. The FY 2014/15 estimated impact to the City from the 3% COLA is $746,000. • Merit Increases .. Effective October 1, 2012, there will no merit increases. The savings to the City from no merit increases during FY 2012/13 is ($185,000). This differs from the $250,000 budgeted savings due to employee turnover as well as the fact that the budget assumes all positions are filled, while the $185,000 savings does not include savings from vacant positions. • Effective September 29, 2013, employees who score at least 60 points on their 148 City Commission Memorandum July 17,2013 CWA 2012-2015 Ratified Collective Bargaining Agreement Page 4 of 7 annual evaluations will be eligible for a three percent merit increase on their anniversary date. The FY 2013/14 estimated impact to the City from a two percent (2%) merit (status quo) to a three percent merit is $91,000, and the FY 2014115 impact of this merit is estimated at $149,000. • Effective September 29, 2014, employees who score at least 60 points on their annual evaluations will be eligible for a three percent merit increase on their anniversary date. The FY 2014115 estimated impact to the City from an increase from a two percent (2%) merit to a three percent (3%) merit is $92,000. • Effective September 30, 2015, the merit increase will be reduced to a maximum of two percent. This will be the status quo provision at expiration of the 2012-2015 collective bargaining agreement. The cost impact of this provision will be applied in FY 2015/16, the beginning of a new contract period. • Holiday Pay Based on the changes implemented in 2010, employees who do not work on a holiday are paid for more hours in the pay period than those who do work, creating a disincentive. Effective October 1, 2013, employees who do not work on a holiday shall receive regular holiday pay. Employees who work the holiday will be paid for all hours worked at a straight time or overtime rate, whichever is applicable, plus holiday pay at the employee's straight time rate. Employees who are called into work on a holiday shall receive their holiday pay at straight time rate and pay for all hours worked at their regular or overtime rate, pursuant to FLSA. The impact to the City due as a result of this revision in holiday pay compensation is estimated to be $108,000 in FY 2013114 and $108,000 in FY 2014/15. • Shift Differential Effective October 1, 2013, shift differential pay of fifty-five cents ($.55) will be reinstated for hours worked between 11 P.M. and 6:30A.M. The FY 2013114 estimated impact to the City is $30,000 and in FY 2014/15 is $30,000. • Emergency Medical Technician (EMT) Pay Effective October 1, 2012, Lifeguards I, II and Lieutenants and Pool Guards who were receiving EMT certification pay on September 29, 2012, shall receive the dollar equivalent of the certification pay they were receiving on that date, as a flat-rate, non-compounding, supplement on a biweekly basis; provided the employees maintain their EMT certification from the State of Florida. The estimated impact to the City for this provision is approximately $116,000 per fiscal year. This provision applies only to employees who were receiving the EMT pay supplement and lost it in September 2012. Due to employee attrition the cost of this benefit will eventually disappear. • Longevitv Integration • Effective October 1, 2012, the maximum wage for Lifeguards II and Lifeguard Lieutenants will be increased by 11 percent, consistent with the treatment in the 2006 contract. The estimated impact to the City from future merit increases from increasing the maximum of the range is $7,000 in FY 2013/14 and $13,000 FY 2014/15. 149 City Commission Memorandum July 17, 2013 CWA 2012-2015 Ratified Collective Bargaining Agreement Page 5 of 7 • Effective October 1, 2012, Lifeguards I and II and Lifeguard Lieutenants who were receiving a longevity pay supplement on September 29, 2012, will have their base salaries increased by the dollar equivalent of the supplement. The estimated impact to the City is $137,000 per fiscal year. This provision only applies to qualifying employees who were already receiving the longevity pay supplement. • Union Time Bank Effective October 1, 2013, the CWA union time bank will be increased from 1,500 hours per contract year to 2,250 hours per contract year. The FY 2013/14 estimated impact of increasing the time bank hours is $34,550. • Drug/A/coho/ Testing Effective upon ratification of the agreement, the random and reasonable susp1c1on drug/alcohol testing program will apply to all CWA bargaining unit employees, not as previously negotiated just to incumbents in certain classifications. The panel of controlled substance for which employees will be tested increased from 5 to 10 separate substances. Additionally, revised language indicates that the testing program will be conducted in accordance with the Code of Federal Regulations, Part 40. This will result in a slightly higher cost to the City due to testing more employees for more substances. Employees whose positions require a commercial driver's license (COL) will continue to be tested according to the applicable Federal guidelines. • Extension ofthe Deferred Retirement Option Plan (DROP) Effective July 17, 2013, the City agreed to extend the three-year DROP to five years for all employees covered by the CWA collective bargaining agreement who were hired prior to September 2010, and allow employees currently participating in the three-year DROP to enter into the five year DROP. The agreement was reached contingent upon the extension not resulting in increased cost to the City. Gabriel, Roeder and Smith (GRS), the actuary for MBERP estimated that from the extension negotiated for MBERP members, the City will save an estimated $778,000 in pension costs in year one, of which $223,400 is estimated to be attributable to CWA. (The extension of the period from three to five years is intended to apply to all participants in the MBERP except employees hired before September 2010, and covered by AFSCME and GSA; and is also contingent upon a savings in the ARC.) Extension of the DROP will result is the City not realizing savings in salary costs by hiring new employees at a lower pay level. The additional salary expense is approximately $45,000 for FY 2012/13, $84,100 for FY 2013/14, and $267,100 for FY 2014/15. • Elimination of Two-Year Past Service Option Effective September 30, 2013, the ability to purchase up to two years of prior creditable service will be eliminated for employees covered by the CWA collective bargaining agreement (as well as employees in the Unclassified and "Others" salary groups). The elimination of the Two-Year Past Service Purchase Option for employees covered by the CWA collective bargaining agreement is contingent on a parallel agreement with at least one of the remaining two general employee bargaining units that participate in MBERP and with 150 City Commission Memorandum July 17,2013 CWA 2012-2015 Ratified Collective Bargaining Agreement Page 6 of7 whom the City is still negotiating. On average, since 2006, there have been 157 past service purchases or buybacks in the General Plan each year. GRS has estimated that the approximate cost to the City, for an average employee earning $60,000 per year is $26,000. For 157 employees this equates to a cost of $4.082 million, of which approximately $1.2 million is estimated to be attributable to CWA. This amount compounds each year as additional employees buy back and the loss is amortized. GRS has also informed the City that the Plan assumptions do not take into account the past service purchase in calculating the ARC. The impact is recognized as an experience loss each year. GRS estimates the amortized value to be $2,300 per person or $361,000 per year for an average salaried employee, assuming all actuarial assumptions are met, of which $108,100 is estimated to be attributable to CWA. 2013/14 loss amortization 2014/15 loss amortizat FY 2015/16 loss amortization FY 2016/17 loss amortization 108 100 108,100 $216,200 $324,300 • Additional 2 Percent Employee Contribution to the Miami Beach Employees' Retirement Plan (MBERP) Similar to the addition of two percent employee contribution when pension costs increased, the City has agreed that should the City's ARC decrease to 23.5% of pensionable payroll, the City will discontinue the additional 2 percent employee pension contribution that was levied on all MBERP members in 2010. CONCLUSION The terms and conditions of the proposed three-year labor agreement between the City and CWA include a total estimated cost impact to the City of $113,500 for FY 2012/13; $366,110 for FY 2013/14; and $1,343,090 for FY 2014/15. The total estimated three-year impact is $1.82 million. In spite of the increased cost, the agreed upon terms and condition of employment will result in long- term pension savings and in creating parity among employees covered by the CWA and other general employees who participate in MBERP. Based on the Actuarial Impact Statement provided by GRS (Attachment 2), the estimated pension savings attributable to extending the DROP from three to five years is $778,000 from the ARC payable on October 1, 2014. This value is based on all members participating in the MBERP. Estimates indicate that employees covered by the CWA bargaining unit account for approximately 30 percent of MBERP membership. Therefore, it is estimated that the pension changes attributable to employees in these three salary groups will yield a savings of $223,400 off the ARC payable on October 1, 2014. 151 City Commission Memorandum July 17, 2013 CWA 2012-2015 Ratified Collective Bargaining Agreement Page 7 of 7 The City and CWA have also agreed to eliminate the two year past service option for MBERP. The savings from the elimination of the buyback described earlier will be recognized over time. The City is still negotiating a successor agreement with AFSCME and GSAF to achieve givebacks similar to those from CWA. The Administration recommends adopting the Resolution to ratify the three-year labor agreement with the CWA bargaining unit for the time period covering October 1, 2012, through September 30, 2015. JLM/ C-T T:\AGENDA\2013\July 17\CWA 2012-2015 Labor Agreement Memo.docx 152 OTH<R EXfCUTIVE ~QAJW~ JR COMMUNICATIONS WORKERS OF AMERICA LOCAL 3178 -MIAMI BEACH AFL-CIO -CLC July 15, 2013 Mr. Jimmy Morales Miami Beach City Manager 1700 Convention Center Drive Miami Beach, FL 33139 Dear Mr. Morales ATTACHMENT 1 7455 Collins Ave., Suite 212 Miami Beach, FL 33141 401-0927 CWA3178.Presideni@gmoi!.com On this day, CWA Local 3178 conducted a ratification vote regarding our tentative agreement. I would like to inform you that the tentative agreement was approved overwhelmingly by 84% of the bargaining unit members who voted. I would like to thank you and your team for all your hard work and consideration. This contract will go a long way with restoring good relations with CWA and the City of Miami Beach and we're looking forward to work with you on future endeavors. Sincerely Richard McKinnon President of CWA Local3178 153 July 15,2013 Ms. Carla Gomez Assistant Director, Human Resources City of Miami Beach 1700 Convention Center Drive Miami Beach, Florida 33139 Rc; Actuarial Dear Carla: One .E:lxt Broward Blvd. Suite 505 Ft. Lauderdale, FL 33301-1304 954527. !616 phone 954.525.0083 fax As we have prepared the enclosed Actuariallmpact Statement showing the financial effect of the following proposed changes to the Miami Beach General Employees' Retirement System: t. The maximum period for participation in the Deferred Retirement Option Program (DROP) would be extended from three to five years for members hired before October 1, 2010 (i.e., Tier A and Tier B members). This extension would apply to all active members in Tiers A and B who elect to participate in the DROP in the as well as current DROP members. The 2.5% COLA is not payable while members are in the DROP. 2. The option tor members to purchase up to of credited service would be eliminated. The Statement must be filed with the Division of Retirement before the final public hearing on the ordinance. Please have a member of the Board sign the Statement. Then send the Statement along with a copy of the proposed ordinance to TaHahassee. With regard to item 2 above, the employer portion ofthe cost for members to purchase service is not prefunded. Therefore, eliminating the service purchase provision will not have an immediate financial effect on the Plan. \Vhen we prepare our annual valuation, any increases to the liability due to service purchased during the previous year are reflected ill the net gain/loss for the year, which is amortized over 30 years. The ultimate cost of the current service purchase provision is measured by the difference between the full actuarial cost of the purchased and the amount that members currently pay to purchase service (Le., l 0% of pay for each year purchased). As an example, the full actuarial cost to purchase the maximum of2 years of service for a member who is currently age 45 with I 0 years of credited service and an annual salary of $60,000 is approximately $38,000. Under the current provisions, the member pays $12,000. The difference of $26,000 is funded by additional City contributions over In th[s example, the effect on the annual required contribution due to the service purchase is an increase of about $2,300 for the first year. This assumes that all of our actuarial assumptions as described in the October l, 2012 Actuarial Valuation Report are met each year. The impact on the total gain/loss varies each year depending on the demographics and specific benefit provisions that apply to members who purchased service. will mean that any losses to service purchases not occur in future years. Please there be losses due to purchases in year 2013 that will be retlected in the October l, 2013 elimination will not be effective until """''"'"'h."'. 154 Ms. Carla Gomez July 15,2013 Page 2 Summary of Findings • The present value of future benefits decreases by approximately $7.8 million . The Plan wou1d be expected to pay out $7.8 million less, in today's dollars, to current members of the Plan. This can be viewed as the total cost impact due to the extension of the DROP :if the actuarial assumptions are met each year. There is a decrease in the first year Annual Required Contribution for the City that is comprised of a reduction in the amortization payments on the Unfunded Accrued Liability and a reduction in the normal cost. The Unfunded Accrued Liability decreased by approximately $6.1 million. This reduction will decrease the annual required contribution by approximately $540,000 each of the next 30 years. The first year normal cost will decrease by approximately $238,000 which is 0.34% of total covered payroll (0.38% of Tier A and B member covered payroll). The reduction of0.38% of Tier A and Tier B member covered payroll will exist until all Tier A and Tier B members have retired. The first year required employer contribution would decrease by approximately $778,000 or 1.19% ofNon-DROP payroll. The funded ratio will increase from 66.1% to 66.7%. Other Cost Considerations " As of October l, 2012 the Market Value of Assets the Actuarial Value by $2.07 million. This difference will be recognized over the next several years. Once all the gains and losses through September 30,2012 are fully recognized in the Actuarial Value of Assets, the contribution rate will decrease by roughly 0.3% of non-DROP payroll unless there are further gains or losses. Additional Disdosures This report was prepared at the request ofthe City with the Board's permission and is intended for use by the City and the Retirement Plan, and those designated or approved by them. This report may be provided to parties other than the City and Retirement Plan only in its entirety and only with their permission. This report is intended to describe the financial of the proposed plan changes. No statement in this report is intended to be interpreted as a recommendation in favor of the changes, or in opposition to them. This report should not be on for any purpose other than the purpose described above. The calculations in this report are based upon information furnished by the Plan Administrator for the October l, 2012 Actuarial Valuation concerning Plan benefits, financial transactions, plan provisions and active members, terminated members, retirees and beneficiaries. We reviewed this infom1ation for internal and year-to-year consistency, but did not otherwise audit the data. We are not responsible for the accuracy or completeness of the information provided by the Plan Administrator. The calculations are based upon assumptions regarding future events, which may or may not materialize. They are also based on the assumptions, methods, and plan provisions outlined in this report. Future actuariai measurements may differ significantly from the current measurements presented in this report due to such factors as the following: 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 these measurements (such as the end of Gabriel Roeder Smith & 155 Ms. Carra Gomez 15,2013 Page 3 an amortization period or additional cost or contribution requirements based on the plan's funded status); and changes in plan provisions or applicable law. If you have reason to believe that the assumptions that were used are unreasonable, that the plan provisions are incorrectly described, that important plan provisions relevant to this proposal are not described, or that conditions have changed since the calculations were you should contact the author of the report prior to relying on information in the report. The undersigned actuaries are members of the American of Actuaries and meet the Qualification Standards of the American Academy of Actuaries to render the actuarial opinions contained herein. The undersigned actuaries are independent ofthe plan sponsor. This report has been 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 ofthe Plan as of the valuation date. All calculations have been made in conformity with generally accepted actuarial principles and practices, and with the Actuarial Standards of Practice issued by the Actuarial Standards Board and with applicabie statutes. Respectfully submitted, Enrolled Actuary No. 11-6467 Copy: Rick Rivera Enclosures Roeder & 156 SUPPLEMENTAL ACTUARIAIJ VALUATION REPORT Plan City of Miami Beach Employees' Retirement Plan Valuation Date October 1, 2012 Date of Report July 15, 2013 Report Requested by City of Miami Beach Prepared by Melissa R. Algayer Group Valued All active and inactive members. Plan Provisions Being Considered for Change Present Plan Pro_yi_§_ions Before Change Members hired before October l, 2010 v"l"''"'~ for nonnal retirement may in the Deferred Retirement for up to three years. The annual ro<:t-"'-1'""' '-"" ,. "v'" while members are in the DROP. Members who have five or more years of service may elect to up to two yettrs of additional credited service at any time Members who elect to such service pay 10% of the annual rate the number 111 M~;,'tnbers hired before October 1, 20 l 0 nonnal retirement may in the Deferred Retirement years. Members in the DROP may also continue for an additional two years The mmuai COLA is not while members are in the DROP. would be eliminated. 157 2 to members hired to October 1, 201 0 for normal retirement and current members ordinance. Elimination of the v""v'""' effective date of the Actuarial Assumptions and Methods To measure the of the would years to 4 years for active Tier A and Tier B members. to all active members after the was increased from 2.75 the COLA was increased from 3 years to 5 years for members in the DROP. Some ofthe are: investment retum-8.0% per year mcrease 4.5% to 7.0% on service Cost Method Normal Cost Method Amortization Period for Any Change in Actuarial Acc1·ued Liability 30 years. Summary of Data Used in Report Same as data used in October 1, 2012 Actuarial Valuation Actuarial Impact of Proposal(s) See attached the DROP from three to five yean; will decrease the first year annual or 1.19'Yo ofNon-DROP of the cost for members to service is not un~mnu,:::o. "'"''u"'"""-"1:> would not have an immediate financial effect on the Plan. Special Risks Involved With the Proposal That the Plan Has Not Been Exposed to Previously None Other Cost Considerations As of October 1, 2012 the Market Value of Assets exceeds the Actuarial Value will be over the next several years. Once all the and losses 2012 are in the Actuarial Value 0.3% of non-DROP or losses. 158 3 CITY OF MIAMI BEACH EMl'LOYEES' RETIREMENT PLAN Statement···· 15,2013 Description of Amendment plan changes: 1. The maximum for in the Deferred Retirement would be extended from three to five years for members hired before October 1, 2010 Tier A and Tier B This extension would to all active members in Tiers A and B who nm·h,..m<>h'' in the DROP in tlle future as well as current DROP members. The 2.5% while members are in the DROP. 2. The for members to np to of credited service would be eliminated. F'unding Implications of Amendment Se attaclm1ents. Certification of Administrator I believe the amendment to be in with Part Article X ofthe Constitution of the State of Florida. For the Board of Trustees as Plan Administrator 159 Florida Statutes and Section ANNUAL REQUIREI) CON'fRIBUTION (ARC) A Valuation Date Fiscal Year C. Assumed Date of Contrib. D. Annual to Amortize Unfunded Actuarial E. Nom1al Cost F. ARC if Paid on the Valuation Date: D+E G. for of H. I. October I, 2012 Valuation 9/30/2014 I 0/1/2013 $ 17,1 160 40.29 % 37.56 % October 1, 2012 Three to Five Years $ 9/30/2014 10/1/2013 39.10 % 36.45 $ 4 Increase/ (LI9)% (Lil)% ACTUARIAL VALUE OF BENEHTS AND ASSETS A. Valuation Date B. Actuarial Present Value of All Benefits for l. Active Members a. Service Retirement Benefits b. Benefits c. Benefits d. Preretirement Death Benefits e. Return of Member Contributions f. Total 2. Inactive Members a. Service Retirees & Beneficiaries b. Retirees c. Terminated Vested Members d. Total 3. Total for All Members C Actuarial Accmed per GASB No. 25 D. Plan Assets 1. Market Value 2. Actuarial Value E. Unfunded Actuarial Accmed F. Funded Ratio G. Actuarial Present Value of Covered H. Actuarial Present Value of Member Contributions $ October 1, 2012 Valuation 74 66.1 % 5 161 October 1, 2012 Extend Three to Five Years $ 66.7 % 51 5 Increase/ $ 0) 0) 0.6 % CALCULATION OF EMPLOYER NOR!VlAI, COS'I A Valuation Date B. c D. Nonnal Cost D:Jr 1. 2. 3. 4. 5. 6. 7. 8. Secvice Retirement Benefits Benefits Benefits Preretirement Death Benefits Return of Member Contnbutions Total for Future Benefits A<>sumed Amount for Administrative Total Normal Cost Member Contribution %of Covered -Non-DROP -Total October 1, 2012 Valuation $ 162 20.89% 19.47 % 10.00% 9.32% 10.89% 10.15% October 1, 2012 Extend Tfzree to Five Years $ 20.55% 19.16% 10.00% 9.32 (% 10.55 % 9.84% $ 6 Increase/ % 1)% 0.00 % 0.00 % % % 7 JlARUCIPANT DATA October 1, 2012 October 1, 2012 Valuation Extend Three to Five Years ACTiVE MEMBERS Number Covered Annual Non-DROP $ $ Annual Non-DROP $ $ Total Covered Annual $ $ 45.1 45.1 9.8 9.8 at Hire 35.3 35.3 DROP P ARTlCIP ANTS Number 55 55 Annual Benefits $ $ 59.3 59.3 & BENEFICIARIES Number $ $ $ $ 71.1 71.1 IS ABILITY RETIREFB Number 43 43 Annual Benefits $ 1, l $ 1,1 $ $ 65.6 65.6 TERMINATED VESTED MEM.RERS Number 63 63 Annual Benefits $ s '~ $ $ 45.9 163 EXHIBIT A AGREEMENT Between CITY OF MIAMI BEACH, FLORIDA Bl MIAMI BEACH and COMMUNICATIONS WORKERS OF AMERICA (CWA) LOCAL 3178 Period Covered October 1, 201:209c to September 30, 201512 164 TABLE OF CONTENTS PAGE# AGREEMENT .... . 1 PREAMBLE ............... . . .................................................... 2 ARTICLE 1 -Recognition Section 1.1 Section 1.2 Section 1.3 Representation and Bargaining Unit.. ........ . Unit Description .................................. .. Job Classifications/Audits ........................................................ .. ARTICLE 2 -Employee and Union Rights Section 2.1 Section 2.2 Section 2.3 Section 2.4 Section 2.5 Section 2.6 Section 2.7 Section 2.8 Section 2.9 Section 2.1 0 Section 2.11 Employee Rights During Meetings or Interviews...................... 5 Notice of Disciplinary Action ................................................................................... 5 Retaliation for Exercising Rights .................................................................... " ....... 6 Union Membership/Right of Union to Represent Only Members .. " ..................... 6 Access to Personnel Records"'"""'"'"""'''"'"'"'"""''"""'""'""'""'"""''"""'" 7 Employee Bargaining Team............................ 7 Recording Devices............... .. ................... 7 Employee Examination Review ................ .. Meeting Leave ............................................... . Information to be provided to Union by City .......................... .. ARTICLE 3 -Deduction of Union Dues Section 3.1 Section 3.2 Check-off ........... .. Indemnification .................................................................. . ....... 10 .,............ . ............... 10 ARTICLE 4 -Grievance Procedure Section 4.1 Section 4.2 Section 4.3 Section 4.4 Section 4.5 Section 4.6 Section 4.7 Section 4.8 Purpose................................................... .. ....... ,. ..................................... " ... 11 Definitions................................................ ..... .. .................... 11 Special Provisions........................................................................ .. ................... 12 Grievances Involving Discipline ...................... ., .. ., ....... """'""""'"" 14 Grievance Procedures ............................. ,.... 15 Arbitration................................................... . .................. 16 Differences Concerning Personnel Rules........ 18 Union Time Bank .............................................................. . .... 18 ARTICLE 5 -No Strike and No Lockout Section 5.1 Section 5.2 No Strike ........... .. No Lockout ARTICLE 6 -Management Rights .. ...... 20 ............ 20 165 TABLE OF CONTENTS, continued PAGE# ARTICLE 7 -Hours of Work and Overtime Section 7.1 Section 7.2 Section 7.3 Section 7.4 Section 7.5 Section 7.6 Section 7.7 Section 7.8 Section 7.9 Section 7.10 Section 7.11 Section 7.12 Section 7.13 Purpose ............................................................... ., ................................... 22 Normal Workday ................................................................................................... 22 Normal Workweek ................................................................................................ 22 Overtime ............................................................................................................... 22 Distribution of Overtime Opportunity ........................... ., ......................... ,. ............ 23 Holiday Celebration and Pay for Working on Holiday ........................................... 23 Rest Periods ............................................................. "" ........................................ 25 Reporting Pay .................................................................................... ,. ................. 26 Come Back Pay ............................................................. ., ..................................... 26 Standby Time .................................................................................. ., ................... 26 Clean-Up Time ..................................................................................................... 26 No Pyramiding ............................................................... ., ..................................... 26 Essential Persor+<:+nnstJ (Hurricane Pay) ................................................................ 26 ARTICLE 8 -Wages and Fringe Benefits Section 8.1 Section 8.2 Section 8.3 Section 8.4 Section 8.5 Section 8.11 Section 8.12 Section 8.13 Section 8.14 Section 8.15 Section 8.16 Section 8.17 Lieutenant.. 39 Section 8.18 Section 8.19 Section 8.20 Section 8.21 Section 8.22 Section 8.23 Section 8.24 Wages ...................................................................... ,. .......................................... 27 Shift Differential .................................................... "' .............................................. 29 Holidays ................................................................................................................ 29 Bereavement Leave ............................................................................................. 29 Rate of Pay When Working Out of Classification .............................. ., ................. 30 Voting Time .......................................................................................................... 30 Meal Allowance ..................................................................................................... 30 Jury Duty ............................................................................................................... 30 Tool Allowance ..................................................................................................... 31 Uniform Provision ................................................................................................. 31 Insurance .............................................................................................................. 32 Pension ................................................................................................................. 33 Vacation Benefits .................................................................................................. 37 Sick & Vacation Leave Accrual and Maximum Payment on Termination ............ 38 Public Safety ......................................................................................................... 38 & Longevity !ntegr<qttQJl. Lifeguard 1, Lifeguard 11 and Lifeguard Perfect Attendance Bonus .................................................................................. 40 Lead Person ......................................................................................................... 40 Union Conventions ................................................................ ,. ............................ .40 Orientation ............................................................................................................ 40 Educational Leave & Tuition Refund ................................................................... 41 Property Management-License( s) Maintenance ................................................. .41 EMT Certification Pay .......................................................................................... .41 ii 166 TABLE OF CONTENTS, continued PAGE# ARTICLE 9 -General Provisions Section 9.1 Section 9.2 Section 9.3 Section 9.4 Section 9.5 Section 9.6 Section 9.7 Section 9.8 Section 9.9 Section 9.10 Section 9.11 Section 9.12 Section 9.13 Section 9. 14 Section 9.15 Section 9.16 Section 9.17 Section 9.18 Discrimination ....................................................................................................... 42 Meetings Between Parties .................................................................................... 42 Reduction in Work Force ...................................................................................... 42 Work Rules ........................................................................................................... 42 Probationary Employees ....................................................................................... 43 "Temporary" Employees ................................................................................ , ... .A3 Political Activities of Employees ........................................................................... 44 Safety .................................................................................................................... 44 Parking ................................................................................................................. 45 Glasses and Hats ................................................................................................ .46 Notification in the Event of Transfer or Contracting Out... ................................... .46 Stress Reduction/Police Department's Public Safety Communications Unit... .... .47 Bulletin Boards ..................................................................................................... 47 Seniority ................................................................................................................ 47 SafatyShoes ........................................................................................................ 48 Labor/Management Committee .......................................................................... .A8 Promotions ........................................................................................................... 49 Beach Patrol Promotions ...................................................................................... 49 ARTICLE 10-Drug and Alcohol Testing Section 10.1-10.:;1,+ ............................................................................ " .......................... 50 Section 10.8 ................................................................ 51 &:v;;<tk:Hl i {} ARTICLE 11 -Entire Agreement ............................................................................................................... 52 ARTICLE 12-Savings ............................................................................. m ............................................... 53 ARTICLE 13-Term of Contract ................................................................................................................ 54 EXECUTION ................................................................................................................................................ 55 APPENDIX A-COMPENSATION PLAN .................................................................................................... 57 APPENDIX B-GRIEVANCE FORM ............................................................................................................ 63 iii 167 THIS AGREEMENT, was made and entered into on day of -------' 20132-G--W~ by and between the CITY OF MIAMI BEACH, FLORIDA (herein called the "City"), and the COMMUNICATIONS WORKERS OF AMERICA (herein called the "Union"). CWA-1 7/12/20137:07:10 PM 168 PREAMBLE WHEREAS, the Union has been selected as the sole and exclusive bargaining representative by a majority of the employees set forth in Article 1, and has been recognized by the City pursuant to the laws of Florida as the sole and exclusive bargaining representative for said employees; WHEREAS, the City and the Union have voluntarily endorsed the practices and procedures of collective bargaining as a fair and orderly way of conducting relations between the City and the employees covered by this Agreement insofar as such practices and procedures are appropriate to the obligations of the City to retain the right effectively to operate the various departments of the City and are consonant with the paramount interests of the public; WHEREAS, it is the intention of the parties to this Agreement to provide, where not otherwise mandated by Statute, for the salary schedule, fringe benefits and conditions of employment of the employees covered by this Agreement, to provide for the continued and efficient operation of the various departments of the City, and to provide an orderly and prompt method of handling and processing grievances; NOW, THEREFORE, the parties agree with each other as follow~: CWA-2 7/12/2013 7:07:10 PM 169 ARTICLE 1 RECOGNITION Section 1.1. Representation and Bargaining Unit. The City recognizes the Union as the sole and exclusive representative of all employees in the unit described below. Section 1.2 Unit Description. All regular, full-time employees in the following classified job descriptions, excluding all managerial, supervisory, confidential, temporary, and casual employees, and employees currently represented in other certified bargaining units: Account Clerk I Account Clerk II Account Clerk Ill Administrative Aide I Administrative Aide II Administrative Assistant I Administrative Secretary Air Conditioning Mechanic Building Inspector Buyer Carpenter I Carpenter II Clerk Clerk Typist Code Compliance Administrator Code Compliance Officer I Code Compliance Officer II Commission Reporter I Commission Reporter II Communications Operator Complaint Operator II Crime Analysis Specialist Crime Scene Technician I Crime Scene Technician II Engineering Inspector Field Inspector I Field Inspector II Finance Specialist I Finance Specialist II Finance Specialist Ill Lifeguard I Lifeguard II Lifeguard Lieutenant Mason Masonry Helper Mechanical Inspector Meter Analyst Painter Parking Dispatcher Parking Enforcement Specialist I Parking Enforcement Specialist II Parking Meter Technician I Parking Meter Technician II Permit Clerk I Permit Clerk II Planning Technician Plumber Plumbing Inspector CWA-3 170 7/12/2013 7:07:10 PM Data Entry Clerk Dispatcher Dispatcher Trainee Duplicating Equipment Operator Electrical Inspector Electrician Elevator Inspector Engineering Assistant I Engineering Assistant II Engineering Assistant Ill Section 1.3 Job Classifications/Audits. Pool Guard I Pool Guard II Police Fleet Specialist Police Photographer Police Records Technician Property Evidence Technician I Property Evidence Technician II Public Safety Specialist Revenue Processor I Revenue Processor II a) The City and the Union agree that in the event the City creates a new job classification within the bargaining unit, or substantially changes the duties of a job classification which remains within the bargaining unit, or combines job classifications within the bargaining unit as a result of job audits, or market studies, the City will bargain with the Union concerning the appropriate rate of pay for the new, changed, or combined jobs . However, in no event, will the position be paid at a lower rate of pay or at a lower classification. Until agreement is reached or impasse is resolved, affected employees will be paid as determined by the City. Upon agreement as to the rate of pay for the new, changed, or combined job(s), the agreed rate shall be retroactive to the date that the City filled the positions. b) The parties agree that they will periodically review the job classifications and, if appropriate, file a joint petition to Public Employees Relation Commission (PERC) to determine which positions should be in or out of the bargaining unit. c) The City recognizes the life safety work that Lifeguard I, Lifeguard II and Lifeguard Lieutenants perform is of a public safety service nature, however, the parties further agree and understand that there is no assumption of additional compensation or benefits based on this recognition. CWA-4 7/12/2013 7:07:10 PM 171 ARTICLE 2 EMPLOYEE AND UNION RIGHTS Section 2.1 Employee Rights During Meetings or Interviews. a) An employee shall be entitled to request Union representation at all meetings where the representative of the City intends to seek to gain information from the employee which may become a part of the written disciplinary record or may result in a written warning/reprimand of the employee. b) The employee shall be informed of the nature of the meeting, the alleged conduct, and if requested, be given a reasonable period of time prior to the meeting to contact and consult with the Union. Nothing contained herein shall preclude an employee from legal representation in the event of a criminal investigation. c) At the request of the employee, the City will advise the Union President of all such meetings with the employee and the Union President will arrange to have a Union Representative present. d) All meetings will be held in the City at a reasonable hour during the employee's shift or contiguous to the shift on the clock, unless an emergency or serious condition prevents such action. e) This provisions of Article 2, Section 2.1 shall be subject to the Union Time Bank as described in Section 4.8. Section 2.2 Notice of Disciplinary Action. a) No reprimand, termination, suspension, demotion, punitive transfer, or punitive reassignment which results in loss of pay shall be taken against an employee unless he/she is notified of the action, and the reason(s) for such recommended action given in writing specifically prior to the action. Notice in writing shall be given to the employee as soon as practicable. b) If such disciplinary action is taken against any employee which results in loss of pay or monetary benefits or denial of annual merit increase, Management will adhere to progressive discipline: Written "verbal warnings" shall f\Gt-be kept in departmental or Human Resources files. If the employee is not disciplined for the same incident again during a calendar year, the written "verbal warning" shall not be used for his/her Annual Performance Evaluation report. c) The employee must have received a Special Report during the evaluation period informing him/her of CWA-5 7/12/2013 7:07:10 PM 172 the less than satisfactory performance and what action should be taken for improvement. A copy of the Special Report must be submitted with the Annual Evaluation Report. d) The employee must have received a warning during the evaluation period at least sixty (60) but no more than ninety (90) days prior to an employee receiving a less than satisfactory performance. If the unsatisfactory work performance occurred prior to ninety (90) days before the anniversary increase was due, the warning must state what action the employee must take to correct the unsatisfactory performance. A copy of the warning shall be submitted with the Annual Evaluation Report. e) Nothing in this section shall be intended to contravene public record law. f) Annual merit increases are not automatic and may be denied. The employee's Department will be responsible for monitoring the progress or lack of progress on the employee's effort to correct the problem which led to the unsatisfactory rating. Such follow-up shall be every ninety (90) days after the corrective process commenced. Upon correction of the problem, the employee will be granted the annual increase. Section 2.3 Retaliation for Exercising Rights. No employee, supervisor or management person shall be retaliated against or be threatened with any such retaliation by reason of his/her exercise of any rights set forth in this Agreement Section 2.4 Union Membership-Right of Union to Represent Only Members. The City and the Union agree not to interfere with the right of employees to become or not become members of the Union, and further, both parties agree that there shall be no discrimination, interference, restraint, or coercion against any employee because of Union membership or lack of it; except that the Union may process grievances for, advise, or participate in meetings or interviews on behalf of members only. Human Resources will inform the Union of new hires on a monthly basis. Section 2.5 Access to Personnel Records. Upon reasonable request, an employee shall have the right, in the presence of an appropriate representative of the employer, to review and copy all or any portion of the employee's official records which are or may become a part of the personnel file maintained by the Human Resources Department and his/her department. The employer may charge a reason~ble fee of fifteen cents ($.15) per page for such copying. Employees will be provided with a copy of records or letters that are to be placed in the employee's Personnel File maintained CWA-6 7/12/2013 7:07:10 PM 173 in either Human Resources or in the Department personnel file, which make specific, derogatory comments about the employee's work performance. This shall be done by the Department prior to the filing and the employee shall be asked to sign his/her acknowledgement. The employee shall be allowed to place in his personnel file a response of reasonable length to anything contained therein which the employee deems to be adverse. No anonymous material shall be placed in an employee's personnel file. It is specifically understood that this provision shall not in any way alter or modify the Personnel Rules concerning tests or examinations and the period of time which an employee has to review tests or examinations which he/she has taken. Section 2.6 Employee Bargaining Team. The City agrees that the Union shall be permitted up to five (5) employees to serve on a collective bargaining team in any collective bargaining negotiations with the City, and that such persons shall be compensated at their regular salary when negotiations are during regular working hours. The Union may appoint alternates who shall be compensated instead of regular members of the collective bargaining team for those periods of time when they actually serve on the bargaining team. Attendance at negotiations for a successor agreement shall not be counted against the union time bank. Section 2.7 Recording Devices. No mechanical recording devices of any kind shall be used in discussions between department heads, division heads, or supervisors and employees unless the parties mutually agree otherwise. It is specifically understood that this subsection shall not in any way apply to any City Board. Section 2.8 P4l!~S~'£1ih Computerized Voice Stress Analysis Examinations and Psychological Examinations. I a) ~gwa!£h Computerized Voice Stress Analysis Examinations 1) A bargaining unit member may be required to submit to a tMYP£tlF£H:'n :£:~=~~~=~ stress analysis test, or any other electronic examination, the purpose of which is to test the truthfulness of the employee when investigating a work place theft only when there is reasonable suspicion to believe that the employee is involved. 2) It is understood that bargaining unit members may be required to take a comQuterized vojce stress analysis examination when such examination is a pre-condition of their initial employment with the City. A bargaining unit member may be required to take a CWA-7 7/12/2013 7:07:10 PM 174 polygraph computerized voice stress analysis examination for promotion, or transfer into a department that has required polygrapR--computerized voice stress analysis tests. 3) Such polygraph computerized voice stress analysis test~ shall be conducted by an independent, professional examiner as selected by the City. Nothing contained in the Agreement shall abridge the rights of individual employees or the rights of the City under Florida law. b) Psychological Examinations At the City's request, the Union agrees to appear before the Personnel Board and jointly submit with the City a proposal to include a psychological examination for Lifeguard I applicants. Psychological examinations shall be in English and Spanish. Section 2.9 Employee Examination Review. An employee shall have the right in the presence of an appropriate representative of the employer to examine and/or review his/her own completed promotional examination as provided in Florida Statutes. Section 2.10 Meeting Leave. The Union shall have the right to send up to two (2) of the four (4) designated Union representatives, authorized with pay for time he/she would have otherwise been working, to attend City Commission Meetings, Personnel Board Meetings, or Pension Board Meetings, when a matter relating to the collective bargaining agreement is on the Agenda for such meeting, and if prior approval has been given by the representative's supervisor. The representative is to return to work immediately after the City Commission addresses the Agenda item. This section shall be subject to the Union Time Bank in Section 4.8. Section 2.111nformation To Be Provided To Union By City. The City will provide to the Union one (1) copy of the following: a) A listing of all bargaining unit employees on a disk and hard copy to include the employee's name, address, I. D. number, department assignment, and date of hire, except where such information is exempt from the definition of public records as established by Florida Statutes 119.07 (3) (i). b) The "Personnel Rules" of the City of Miami Beach. CWA-8 7/12/2013 7:07:10 PM 175 c) "Classification Specifications" for all bargaining unit classifications. d) "Agenda" Meeting. distributed to all department heads and news media) for each City Commission e) Salary Ordinance amendments affecting bargaining unit classifications. CWA-9 7/12/2013 7:07:10 PM 176 Section 3.1 Check-off. ARTICLE 3 DEDUCTION OF UNION DUES Upon receipt of a lawfully executed written authorization from an employee, which is presented to the City by an official designated by the Union in writing, the City agrees during the term of this Agreement to deduct the uniform Union dues and assessments of such employees from their pay and remit such deductions to the Union Treasurer; provided, however, that such authorization is revocable at the employee's will upon thirty (30) days' written notice to the City and the Union. The Union will notify the City thirty (30) days prior to any change in its dues and assessments structure. The Union shall pay, during the term of this Agreement, the amount of two hundred dollars ($200) dollars annually as a service charge for implementing and processing the above-stated dues and assessments deductions. The Union shall make the payment on or before April1 of each year of the Agreement. The Union and the City agree to develop an electronic/magnetic media reporting system for deduction of dues within six (6) months of ratification of the contract. Section 3.2 Indemnification. The Union agrees to indemnify and hold the City harmless against any and all claims, suits, orders or judgments brought against the City under the provisions of this Article; provided, however, this Section shall not apply to any act or failure to act on the part of the City resulting from its own willful behavior. In the event of an error in dues deductions, transfer should be transmitted thirty (30) days after written notification. CWA -10 7/12/2013 7:07:10 PM 177 Section 4.1 Purpose. ARTICLE 4 GRIEVANCE PROCEDURE It is recognized that complaints and grievances may arise between the bargaining agent and the employer or between the employer and any one or more employees concerning the application or interpretation of any provision of this Agreement. The employer and the bargaining agent desire that these grievances and complaints be settled in an orderly, prompt and equitable manner so that the efficiency of the City of Miami Beach may be maintained and the morale of employees not be impaired. Every effort will be made by the employer, employees, and bargaining agent to settle the grievances at the lowest level of supervision. The initiation or presentation of a grievance by an employee will not adversely affect his standing with the employer. No reprisals of any kind will be made by agents of the City against the grievant(s) or the Union's representatives by reason of such participation in the processing of their grievance. Similarly, the Union, its officers or agents, shall not impede, malign, or delay the City or management's representative in their duties during the investigation or processing of said grievance. In order to investigate, discuss and process grievances, the designated Union representatives and witnesses must request permission 24 hours in advance (except in emergencies), and report their return to work upon conclusion of the use of time for grievance matters. All such time away from work by Union representatives shall be deducted from and is subject to the Union's Time Bank. Bargaining unit employees covered by this Agreement shall no longer be able to file an appeal via the City's Personf1el Board procedure for any disciplinary matter. Section 4.2 Definitions. a) Grievance-a grievance is a dispute involving the interpretation or application of any provision of this Agreement, excluding matters not covered by this Agreement or where Personnel Board rules and regulations are involved; provided, that disciplinary actions, including discharges, but not including verbal warnings, may be grieved under this Article further provided that the reasonableness of new or changed work rules and whether there has been reasonable application of old or new work rules and lay-off provisions of the Personnel Board's rules and regulations, may be grieved under this Article. The reasonableness of work rules which were negotiated is not grievable. b) Aggrieved Employee(s)-the employee(s) filing the grievance or causing the grievance to be filed. CWA -11 7/12/2013 7:07:10 PM 178 c) Immediate Supervisor -the individual having immediate supervisory authority over the aggrieved employee(s). d) Division Head -the head of the division in which the aggrieved employee(s) works. e) Department Head -the head of the department in which the aggrieved employee(s) works. f) Days-as referred to in the time limits herein, days shall mean working days (i.e., Monday through Friday, exclusive of scheduled holidays). Section 4.3 Special Provisions. a) The time limits set forth herein may be extended and/or modified by mutual written agreement. b) If the employer violates any time limits, the bargaining agent may advance to the next step without waiting for the employer's response. If the Union, or the grievant(s) fail to initiate or move the grievance to the first or next step of the grievance procedure, as set forth herein (time limits), it shall be untimely and considered withdrawn. c) The parties acknowledge that, as a principle of interpretation, employees are obligated to work as directed while grievances are pending; except where the safety of a working condition or health of the employee(s) is the basis of the grievance. d) Aggrieved employees, a reasonable number of employees, not to exceed three (3), called as witnesses, and a specifically designated Union representative, shall be allowed to be present at the various formal steps of the grievance procedure, including arbitration. One witness may attend without loss of pay for those actual hours during his/her regular work schedule. Any other witnesses, not to exceed two (2) in total, may attend provided that there is adequate time to cover such work time in the Union Time Bank. The Union shall notify the City Manager's designee for Labor Relations of who it wishes to call, and then Management will schedule the witnesses to be available as needed. If there are circumstances where more than three (3) witnesses are needed, the Union will make a request to the City Manager's designee for Labor Relations, who will make the final decision. e) The Union shall designate to the City the names of the seventeen (17) Union representatives, plus one individual who shall be designated as the Chairman of the Grievance Committee, whose function shall be to assist unit members in the processing of complaints and grievances under this procedure. At Step I only one (1) of the designated Union representatives will be allowed at any grievance meeting. At Step II & Ill, only two (2) of the designated Union representatives will be allowed at any CWA-12 7/12/2013 7:07:10 PM 179 grievance meeting. All such attendance time shall be deducted from and subject to the Union's Time Bank as set forth in Section 4. 8, including, but not limited to, the specification of representation by four (4) members of the executive board. f) City of Miami Beach employees other than those designated Union representatives (as set forth in Section 4.8) shall not be granted time off from work without loss of pay for the processing of grievances. g) The specifically designated Union Representatives shall be permitted during working hours without loss of pay to investigate, discuss, and process grievances in their respective areas, provided the following conditions are met: 1) Permission of their immediate supervisor is secured (such permission shall not be unreasonably denied); 2) The supervisor shall be notified twenty-four (24) hours prior to investigating, discussing, and processing grievances on City time (shorter notice may be given in the case of emergencies); and 3) The representative will report his/her return to work to the immediate supervisor upon conclusion of the use of time for grievance matters. 4) There is sufficient time in the Union Time Bank to cover the entire period of the representative's absence from work. h) An employee may request Union representation in accordance with the provisions of this Agreement at each and every step of the grievance procedure set forth in this Agreement. i) The bargaining agent, in accordance with its own lawful internal rules, shall have the sole and exclusive right to determine whether any grievance warrants processing through this procedure. In the event the bargaining agent determines at any step of the grievance procedure that a grievance does not warrant processing, a written notification of that determination shall be sent to the City Manager's designee for Labor Relations. The employee(s) involved shall then be free to process it themselves or through legal counsel. j) If the bargaining agent has declined to process or further process any grievance presented to it, and if any employee, or group of employees, desires to process it or further process their own grievance through this procedure, the bargaining agent shall be sent copies of all written communications sent CWA-13 7/12/2013 7:07:10 PM 180 by the employer or the employee(s) involved. Further, nothing herein contained shall be construed to prevent any public employees from representing, at any time, their own grievance in person or by legal counsel to the employer, and having such grievance(s) adjusted without the intervention of the bargaining agent, provided however, that the adjustment is not inconsistent with the terms of the collective bargaining agreement then in effect; and provided further that the bargaining agent has been given notice and a reasonable opportunity to be present at any meeting called for the resolution of such grievances. k) The bargaining agent shall not be responsible for any costs attendant to the resolution of any grievance(s) it has not processed. I) The parties acknowledge that multiple grievances may be combined at any stage of the grievance procedure where the class of aggrieved employees is clearly defined and the subject matter of the grievances is the same or similar. m) At Step I, all formal grievances presented shall include the date of the alleged violation, the specific article and section grieved; a brief description of the grievance, and the remedy requested. Section 4.4 Grievances Involving Discipline. Discipline shall be only for just cause and shall include written reprimand, suspension, or dismissal. A verbal warning is not disciplinary and is not grievable. Any regular employee who is disciplined, and who has completed the required probationary period, may file a grievance pursuant to the provisions of this Article. The Union or employees not represented by the Union in a grievance or who are not members of the Union may file discipline grievances at either Step I or II within fifteen (15) days of the written notice of action. Section 4.5 Grievance Procedures: STEP I a) The grievance shall be filed within fifteen (15) days of the alleged violation, interpretation or application of the terms of employment set forth in this Agreement. b) The grievance shall be filed with the division head in writing, on the Grievance Form as attached in the appendix. c) The division head or his/her designee shall note the date of receipt of the grievance, and shall seek to meet the aggrieved employee at a mutually agreeable time within ten (10) days of receipt of the CWA-14 7/12/2013 7:07:10 PM 181 grievance. j d) Within five (5) days of the meeting, the division head shall render a decision and shall immediately communicate that decision in writing to the aggrieved, the bargaining agent, and the department head. If the decision is to deny the grievance, the reasons for denial shall be specifically stated. e) The aggrieved employee(s) and/or the bargaining agent may appeal the decision of the division head within seven (7) days of receipt of the decision. f) The appeal shall be submitted in writing to the department head. Failure to appeal the decision of the division head within seven (7) days shall constitute acceptance by the aggrieved employee(s) and the bargaining agent of the decision as being a final resolution of the issues raised. STEP II a) If the aggrieved employee(s) appeals the decision, the department head shall schedule a meeting to take place at a mutually agreeable time not more than five (5) days after receipt of the appeal. The exclusive bargaining agent shall be advised in writing as to the date of the proposed meeting, and shall have the right to send one (1) observer to the proceedings if the bargaining agent is not involved in the actual representation of the aggrieved employee(s). b) Within five (5) days of the meeting, the department head shall render a decision and shall immediately communicate that decision in writing to the aggrieved employee(s), and to the bargaining agent. If the decision is to deny the grievance, the reasons for denial shall be specifically stated. c) The aggrieved employee(s) may appeal the decision of the department head within seven (7) days of receipt of the decision. The appeal shall be communicated in writing to the City Manager's designee for Labor Relations. Failure to appeal the decision of the department head within seven (7) days shall constitute acceptance by the aggrieved employee(s) and the bargaining agent of the decision as being a final resolution of the issues raised. STEP Ill a) If the aggrieved employee and/or a representative of the bargaining unit appeals the decision, the City Manager, or his/her designee for Labor Relations, shall schedule a meeting to take place at a mutually agreeable time not more than twelve (12) days after receipt of the appeal. b) Within twelve (12) days of the meeting, the City Manager or his/her designee for Labor Relations shall CWA-15 7/12/2013 7:07:10 PM 182 render a decision and shall immediately communicate that decision in writing to the aggrieved employee and the bargaining agent. If the decision is to deny the grievance, the reasons for denial shall be specifically stated. c) Failure to appeal the decision rendered in Step Ill within twelve (12) days by notice of intent to submit to arbitration shall deem the decision at Step Ill to be final and no further appeal will be pursued. Section 4.6 Arbitration. If the employer and the aggrieved employee(s) and/or the bargaining agent fail to resolve the grievance, the grievance may be submitted to final and binding arbitration by an impartial neutral mutually selected by the parties. a) Notice of intent to submit the grievance to arbitration shall be communicated in writing by the Union President or his designee to the office of the City Manager's designee for Labor Relations within twelve (12) days of the receipt of the decision at Step Ill. Any requestto go to arbitration on behalf of the employer is to go to the Union President. b) Within thirty (30) days after written notice of submission to arbitration a request for a list of five (5) or seven (7) arbitrators shall be submitted to the Federal Mediation and Conciliation Service (FMCS). Both the City and the Union shall have the right to strike two (2) names from the panel of five (5) or three (3) names from the panel of seven. The City and the Union agree to alternate as to who shall strike the first name. The arbitrator remaining on the panel after both parties have utilized their two (2) strikes from a panel of five (5) or three (3) strikes from a panel of seven (7) shall be the selected arbitrator. Upon receipt of the panel of arbitrators from the FMCS, the City and the Union shall have thirty (30) days to complete the striking process. The arbitrator shall be notified of his/her selection within five (5) days by a joint letter from the City and the Union requesting that he/she schedule a date and place for a hearing, subject to the availability of the City and the Union. c) Prior to the commencement of the arbitration, the arbitrator may hold a pre-hearing conference to consider and determine: 1) The simplification of the issues; 2) The possibility of obtaining stipulation of facts and documents that will avoid unnecessary proof; 3) Such other matters as may aid in the disposition of the grievance; CWA -16 7/12/2013 7:07:10 PM 183 4) Matters of jurisdiction or applicability, d) The arbitrator shall have no right to amend, modify, ignore, add to, or subtract from the provisions of this Agreement. He/she shall consider and decide only the specific issue submitted to him/her in writing by the City and the Union, and shall have no authority to make a decision on any other issue not submitted to him/her. The arbitrator shall submit in writing his/her decision within thirty (30) days following close of the hearing or the submission of briefs by the parties, whichever is later, provided that the parties may mutually agree in writing to extend said limitation. The decision shall be based solely upon his/her interpretation of the meaning or application of the express terms of this Agreement to the facts of the grievance presented. Consistent with this Section, the decision of the arbitrator shall be final and binding. e) In the event that an employee desires, on his/her own behalf, to process his/her grievance to arbitration, the bargaining agent reserves the right to intervene in the arbitration proceeding up to and including the full right to participation as a party. f) All arbitration costs, including the cost of stenographic reporting of the arbitration hearing if agreed to by the parties, shall be divided equally between the employer and the bargaining agent, or if the bargaining agent has determined not to process the grievance through arbitration, between the employer and the employee(s). Each party will pay the cost of presenting its own case. Section 4.7 Differences Concerning Personnel Rules. A difference of opinion with respect to the meaning or application of the Personnel Rules which directly affects wages, hours, or working conditions may be submitted by the employee or the Union President (or his/her designee) to the City Manager's designee for Labor Relations within ten (1 0) days after the occurrence ofthe event giving rise to the difference of opinion. The City Manager's designee for Labor Relations shall discuss the matter with the employee and the Union Representative at a time mutually agreeable to the parties. If no settlement is reached at this meeting, the employee retains his/her right to appeal to the Personnel Board under the statutory procedures governing such appeals. Section 4.8 Union Time Bank. The CWA represented by four (4) members of the Executive Board, as determined by the President, shall have the right to conduct union business (under the conditions described in this Section) through the use of a time bank. The Time Bani< hours for the period covering October 1, 2009 through September 30, 2010 shall be 3,000 hotlf&.-Effective October 1, 20-iO,U, the Time Bank shall be .t,WG2,250 hours each contract year. Unused time bank hours from one contract year shall rollover to the next contract year, not to exceed a total maximum of 2,2504-,.aOO hours per contract year. No more than two (2) of the designated Union CWA -17 7/12/2013 7:07:10 PM 184 representatives may use time from the Union Time Bank at the same time. The President or designated union representative of the CWA shall provide a minimum of twenty-four (24) hours notice to the appropriate Department Director or designee for any leave to be granted. Such leave shall not be granted unless previously approved in writing by the CWA President. Time for attendance at negotiations for a successor agreement is addressed in Article 2.6. of this Agreement. The time bank shall be used for union representation as outlined in Section 2.1, 2.1 0, and Article 4 of this agreement. All other union convention time other than union convention time referred in Section 8.22 shall be part of the Union Time Bank. Representatives must return to work immediately upon conclusion of the meeting that was the reason for the approved Union time off. If the Union Time Bank is exhausted, no more paid time off to conduct union business on City time shall be requested, paid or approved. Attendance at a pension board meeting by a designated union representative as a pension board member shall not be counted against the union time bank. CWA -18 7/12/2013 7:07:10 PM 185 ARTICLES NO STRIKE AND NO LOCKOUT Section 5.1 No Strike. The parties hereby recognize the provisions of Chapter 447, Florida Statutes, which define strikes, prohibit strikes, and establish penalties in the case of a strike and incorporate those statutory provisions herein by reference. The parties further agree that the City shall have the right to discharge or otherwise discipline any employee(s) who engage(s) in any activity defined in Section 447.203(6), Florida Statutes. Accordingly, the Union, its officers, stewards and other representatives agree that it is their continuing obligation and responsibility to maintain compliance with this Article and the law, and to encourage and direct employees violating this Article or the law to return to work, and to disavow the strike publicly. Section 5.2 No Lockout. The City will not lockout any employees during the term of this Agreement as a result of a labor dispute with the Union. CWA -19 7/12/2013 7:07:10 PM 186 ARTICLE 6 MANAGEMENT RIGHTS It is recognized that except as stated herein, it is the right of the City to determine unilaterally the purpose of each of its constituent agencies, set standards of service to be offered to the public, and exercise control and discretion over its organization and operations. The Union recognizes the sole and exclusive rights, powers, and authorities of the City further include but are not limited to the following: to direct and manage employees of the City; to hire, promote, transfer, schedule, assign, and retain employees; to suspend, demote, discharge or take other disciplinary action against employees for just cause; to relieve employees from duty because of lack of work, funds or other legitimate reasons; to maintain the efficiency of its operations, including the right to contract and subcontract existing and future work; to determine the duties to be included in job classifications and the numbers, types, and grades of positions or employees assigned to an organizational unit, department or project; to assign overtime and to determine the amount of overtime required; to control and regulate the use of all its equipment and property; to · establish and require employees to observe all its rules and regulations; to conduct performance evaluations; and, to determine internal security practices; provided however, that the exercise of any of the above rights shall not conflict with any of the express written provisions of this Agreement. The City agrees that, prior to substantial permanent layoff of bargaining unit members, it will advise the Union. If, in the sole discretion of the City it is determined that civil emergency conditions exist, including but not limited to riots, civil disorders, hurricane conditions, or similar catastrophes, the provisions of this Agreement may be suspended by the City Manager or his/her designee for Labor Relations during the time of the declared emergency, provided that wage rates and monetary fringe benefits shall not be suspended. Should an emergency arise, the Union President shall be advised as soon as possible of the nature of the emergency. CWA-20 7/12/2013 7:07:10 PM 187 ARTICLE 7 HOURS OF WORK AND OVERTIME Section 7.1 Purpose. This Article is intended to define the normal hours of work and to provide the basis for the calculation and payment of overtime. Section 7.2 Normal Workday. The normal workday shall consist of eight (8) or ten (10) consecutive hours of work, exclusive of the lunch period, in a twenty-four (24) hour period. Subject to the above, the City shall determine all aspects of the scheduling of Ocean Rescue employees, including, but not limited to, the daily and weekly shifts of individual employees and/or group of employees (including the start and finish times of each shift and the start and finish times of individuals within a shift (staggered shifts)) and days off, provided that any change to scheduling is made consistent with notice and seniority requirements contained in this agreement when applicable. The City may, on an as needed basis, supplement the Lifeguard workforce with such "temporary employees" as outlined in Section 9.6. Section 7.3 Normal Workweek. The normal workweek shall consist of forty (40) hours per week, and such additional time as may, from time to time, be required in the judgment of the City to serve the citizens of the City. The workweek shall begin with the employee's first regular shift each week. No schedule changes involving shifts or days off shall be made without at least ten (1 0) workdays' notice to the employees involved, provided that in an emergency, or other such reason justifying a temporary schedule change only, such notice as is practicable shall be given. The implementation of this provision shall not be arbitrary and capricious. Section 7.4 Overtime. It is understood that the City may require necessary and reasonable overtime for unit members. For all hours worked in excess of forty (40) hours during an employee's workweek, the City will pay the employee one and one-half (1-1/2) times the employee's straight time hourly rate of pay. CWA-21 7/12/2013 7:07:10 PM 188 actual hours worked shall be considered for the purposes of computing overtime. For example, paid leave including but not limited to any Annual, Holiday, Sick, Family Medical Leave, Birthday, Floater, Bereavement, Compensatory Leave, [3nd Administrative Leave shall not be considered as time worked for the purpose of computing overtime. For all hours worked on an employee's seventh consecutive workday within his/her workweek, the City shall pay two (2) times the employee's straight time hourly rate of pay, provided the employee has actually worked his/her full shift on each of the six (6) preceding workdays. This provision shall not be applicable if a substantial number of employees are scheduled to work seven (7) consecutive workdays because of an emergency such as a hurricane. If an employee, scheduled to work, works more than his/her normal hours on a holiday, the excess hours shall be paid at the holiday rate. Section 7.5 Distribution of Overtime QR!Z2fi!.nltl!Work. CWA-22 7/12/2013 7:07:10 PM 189 Section 7.6 Holiday Celebration and Pay for Working on Holiday. CWA-23 190 ott rmd th€1 t+OHHEH 1WOF¥iFH£¥ @ 7/12/2013 7:07:10 PM I a) Whenever any of the holidays listed in Section 8.3" Holidays, of this Agreement fall on a Sunday, the following workday shall be observed as the official holiday; whenever any of the above listed holidays occur on a Saturday, the preceding workday shall be observed as the official holiday. In such cases, the day on which the holiday is observed shall be considered to be the paid holiday and not the regular day. b) To be eligible for a paid holiday, an employee must report for scheduled work on the holiday, on the last scheduled day preceding the holiday and the first scheduled day following the holiday unless such absences are excused. Excused absences are defined as: 1) an employee calls in sick and is eligible to receive paid sick leave, and who is granted sick leave usage; 2) approved annual leave; 3) floating holiday; 4) birthday. c) Failure to report for work on, before, after, or during the holiday after having been scheduled to work on such holiday shall be just cause for denial of holiday pay. d) A holiday which is observed during an employee's regularly scheduled workweek shall not be considered as time worked for the purpose of computing overtime, pursuant to Section 7.4 Overtime herein. 1) CWA-24 7/12/2013 7:07:10 PM 191 2) 3) Section 7. 7 Rest Periods. Employees may take a rest period of fifteen (15) minutes for each half day of work. Daily rest periods shall be scheduled by the supervisors. Whenever practicable, the rest period will be scheduled approximately mid-point in the first one-half of the employee's regular work shift and in the second half of the employee's regular work shift. Employees who extend their rest period may be subject to disciplinary action. For each additional four (4) hours worked beyond the regular shift, an additional fifteen (15) minute rest period shall be provided. Employees in PSCU shall enjoy a fifty (50) minute meal break and a ten (1 0) minute rest period which, upon request of an employee and with the approval of the supervisor, will be combined into a sixty (60) minute meal break. CWA-25 7/12/2013 7:07:10 PM 192 Section 7.8 Reporting Pay. An employee who reports to work as scheduled will be guaranteed eight (8) hours of work or eight (8) hours of pay; (or, for those on ten-hour days, ten hours of work or ten of pay); provided, however, that supervisors may assign employees to perform any reasonable work. Section 7.9 Come Back Pay. An employee who is scheduled or called in to work outside of his/her normal hours of work will be guaranteed four (4) hours of work or four (4) hours of pay. It is understood that call-in pay does not apply to work which is contiguous to his/her regularly scheduled shift. Employees who are required to attend Court shall only be required to return to Division Headquarters if their Court appearance has been scheduled during their normal workweek. Section 7.10 Standby Time. Employees assigned to standby shall receive two (2) hours per day of straight time as a standby bonus unless they receive comeback pay. Standby Pay shall be offered to employees in the same manner and conditions as in Article 7.5 Distribution of Overtime. Section 7.11 Clean-Up Time. At the end of the shift, skilled trades employees and members of the beach patrol and Pool Guards shall be allowed fifteen (15) minutes clean-up time; provided that they may also be required to perform other work tasks during such time if it does not interfere with clean up. However, Pool guards cannot leave the job site during this clean-up time. Section 7.12 No Pyramiding. Premium pay and overtime shall not be paid for the same hours. The employee shall receive the greater of the two alternative premiums. Section 7.13 Essential Personnel (Hurricane Pay). When the City declares an emergency due to a named hurricane and other events and non-essential personnel employees are advised to stay home with pay and essential personnel employees are ordered to work, essential personnel employees shall be paid at the rate of one and one-half of their straight hourly wages for all hours worked for up to three (3) days. ARTICLES CWA-26 711212013 7:07:10 PM 193 WAGES AND FRINGE BENEFITS No bargaining unit member who left the City's employ prior to the date of ratification of this Agreement by the Commission will be eligible for any wages or benefits under this Agreement. l a) Effective the first (1st) full pay period ending in October 200¥16, there shall be no across-the-board wage increase for any CWA bargaining unit positions. Also, there shall be no increase on the minimums and maximums of each job classification range. 1 b) Effective the first (1st) full pay period ending in October 201}10, there shall be no across-the-board wage increase for any CWA bargaining unit positions. Also, there shall be no increase on the minimums and maximums of each job classification range. c) Effective the first (1st) full pay period ending in October 2014 i l, there shall be a three percent (3°&} no across-the-board wage increase for any CWA bargaining unit positions. Also, there shall be §! increase the minimums and maximums of each job classification range. Effeoti~the first { The City of Miami Beach classification and pay system will rsohinuetobe utilized asearearmH:H:cvl&ear-rorall bargaining unit employees, for t?e1 EHTn;i+HiHJ<:!kA~>~!tlcatlon \Jc:tui>eF,+:"""'H++cH-""-A nBreiorz;;e""'tt·<>~"'t"'"' October 1, 2010, all classifications in the CWA Bargaining Unit shall be in the pay for performance pay system. This classification and pay system includes salary range changes, job audits, and market classification studies, but does not include cost-of-living increases. No change (to salary ranges, job audits or market classification studies) shall take place until the Union President or his/her designee concurs. No decision made within the context of this provision shall result in a lower grade, the CWA-27 7/12/2013 7:07:10 PM 194 removal of a job classification from the bargaining unit, nor shall said decision result in an exemption from FLSA overtime requirements. fl~B&B&Hs. Consistent with the classification and pay system, no employee's salary shall tnereafter exceed, for any reason, the applicable maximum salary for the pay range of the employee's position. the "'""""''""'" f(tJ{iF¥Ff Of'1 th<Ylflrt£;.!Hl<lZf0jijif'1r"'lnii<iftl tHlrlr+rm;1H\CG Ff\40t![1i>f%\0.tl!SFlaHH9CGI+V>l CWA-28 7/12/2013 7:07:10 PM 195 position. If an employee's merit rating score does not qualify him/her for a merit increase, the employee may grieve the evaluation up to Step Ill under the provisions of this Agreement A!:s1> A~tJ;;t«:Jtoo 0s:.sxH~,t:t~rr''' Loif!liOOAR9·lJ·AND liFEGUARD Section 8.2 Shift Differential. !;;;1l~l'l@JJJ1JQJgm:_L.A:.Q1~~.Wwhere a majority of an employee's regularly assigned shift hours fall between 11:00 p.m. and 6:30a.m., the employee shall receive a shift differential of fifty five cents ($.55) per hour for work performed after 11:00 p.m. r'lowevl!;}l, '51Wev;t+Viio.\)<>!Zl,t\f11 1. Shift.DHlBr.entkil iihi!H t:;e.£!Hniitii1tf+il. Section 8.3 Holidays. (See Section 7.6) The following fourteen (14) days shall be considered as holidays but the City reserves the right to schedule work on the holidays: New Years' Day, President's Day, Memorial Day, Independence Day, Labor Day, Veteran's Day, Thanksgiving Day, the day following Thanksgiving, Christmas Day, Martin Luther King's Birthday, three (3) floating holidays, and the employee's birthday. Employees shall become eligible for floating holidays and the birthday holiday upon completing six (6) months' continuous service with the City. CWA-29 7/12/2013 7:07:10 PM 196 Section 8.4 Bereavement Leave. In case of death in the immediate family of an employee, time off with straight-time pay will be allowed of two (2) scheduled work days off per death and four (4) scheduled work days off per death if the funeral is held outside the State of Florida. The immediate family shall be defined as father, mother, husband, wife, sister, brother, son, daughter, grandchild, grandfather, grandmother, mother-in-law, father-in-law, stepfather, stepmother, stepson, stepdaughter, or domestic partner as defined in the Domestic Partner Ordinance. Additional time off may be granted by the Department Head, in writing, chargeable to the employee's accrued sick or vacation leave. In such circumstances such additional sick leave shall not count against an employee for purposes of performance evaluations. Section 8.5 Rate of Pay When Working Out of Classification. An employee may be required to temporarily work out of his/her classification when directed by management. Temporarily is defined as an employee who is clearly and definitely performing the principal duties in a higher pay classification for more than one hour per day, and they shall not exceed 580 hours in a 12-month period, and shall be paid as follows, except at the sole discretion of the City Manager or his/her designee for Human Resources who may waive the 580 hour cap if in his/her judgment, it will best serve the needs of the City service: a) Out of class pay shall be distributed as equally as practicable among employees in the same job classification in the same work section. b) If he/she is temporarily working in a lower classification, he/she shall receive his/her hourly rate in his/her regular classification. Employees will not be assigned to lower classification work as punishment or to demean the employee. c) If he/she is temporarily working for one or more consecutive hours in a higher paying classification, he/she shall be paid an hourly rate of one dollar ($1.00) per hour to be added to the employee's straight-time rate of pay. Employees being trained with on-site supervisory assistance in a bona-fide training program for a higher paying classification will be paid their current rate in their regular classification during such training time. ~ction 8.6. Asphalt Lic(}nse Training and Certification. CWA-30 7/12/2013 7:07:10 PM 197 Section 8.67 Voting Time. Given the availability of alternatives such as absentee ballots and early voting, the past practice of allowing paid time off for voting shall be discontinued. Section 8.78 Meal Allowance. An employee who works three (3) consecutive hours or more of pre-shift or post-shift overtime shall be paid $7.00 unless meals are provided by the City. Employees shall receive compensation within three (3) months. In the event employees are supplied with a meal while working the overtime hours, the meal allowance, as provided under this Section, shall cease. Section 8.19 Jury Out~. The City of Miami Beach shall permit employees either to keep payments received from courts of competent jurisdiction for being on duty, or in the alternative, their standard rate of pay, whichever is higher. For each day an employee is called to jury duty, he/she shall be excused from work for such time as is necessary to complete jury duty services. If three (3) or more hours are left in the employee's work shift upon release from jury duty, the employee shall immediately contact his/her immediate supervisor for instruction. Section 8.110 Tool Allowance. Employees in those classifications who are required to provide their own personal tools as part of the job duties shall be entitled to a $17.50 per pay period for the purchase of new/replacement tools. CWA-31 7/12/2013 7:07:10 PM 198 Cnme Scene SmSnnician I Gr\meSccne Technician II Mason Painter Section 8.11 Uniform Provision. Persons employed in all divisions, including the Public Safety Communications Unit (PSCU), who are compelled to wear City-issued uniforms shall be provided with six (6) uniforms. Lifeguards and full-time pool guards shall be provided with one (1) sweat suit per year, and a winter jacket every five (5) years. Six (6) long sleeved/short sleeved shirts or any combination thereof shall be offered to Lifeguard I, II, Lieutenant, Pool Guard I, II, to further protect them from the dangerous ultra-violet rays. On a one-time basis only, all regular, full-time Lifeguard I, Lifeguard II and Lifeguard Lieutenants shall be issued one (1) pair of dress pants, one (1) Class A shirt and one (1) badge. Lost, damaged or stolen badges shall be replaced at the employee's expense. Worn dress uniforms shall be replaced at the City's expense, but no sooner than once per year. Uniforms shall be issued on the following schedule: a) All other uniforms (except the Class A dress uniforms for Lifeguards) shall be delivered to the employees in the month of January of each year. Sponsorship: In the event that the City enters into an agreement with any outside sponsor concerning CWA-32 7/12/2013 7:07:10 PM 199 uniforms that may be issued to any employee(s) (but not necessarily all employees) who are in the bargaining unit, these sponsored uniforms may be issued to satisfy the contractual uniform obligations. No additional contract obligations concerning uniforms are hereby created and such sponsored uniforms may be discontinued at any time by the City. Section 8.12 Insurance. a) Effective at the beginning of the first full health insurance plan year, or as soon as practicable, after (and only if) this multi-year Agreement is ratified by both parties, the City shall offer medical, dental, and life insurance benefit plans to full-time bargaining unit employees and their legal dependents, as set forth in this section (a, band c) during the term of this Agreement. The City will continue to pay at least fifty percent (50%) of the premium cost for eligible employees and their dependents. The City will offer alternative plans as options for employees. The City may change insurance carriers and/or the scope and level of benefits in any plan. The City also may change the percentage of premium cost paid by the City (i.e., provided that it remains at least 50%) from year to year for any one or more of the optional plans available, depending upon the scope and level of benefits available in each of the optional plans. b) The City agrees that it will not change the level of benefits during the term of this Agreement without first consulting with the Group Insurance Board, or a labor-management advisory committee created as a substitute for such Board, such attendance shall not be counted against the Union Time Bank. The designated Union representative may serve on this Board/committee for as long as bargaining unit employees participate, exclusively, in the City's group health insurance plan. In the event that the City materially reduces the scope and level of benefits in the current base (PPO or HMO) plan then the Union may request post-implementation impact bargaining. c) Employees in the bargaining unit shall be eligible to participate in the City's flexible and voluntary benefits plans, which may be modified by the City from time to time. The flexible and voluntary benefits plans shall be administered by the City. Section 8.13 Pension. General Provisions: CWA-33 7/12/2013 7:07:10 PM 200 Promoted employees may remain in Classified Plan. The pension plan will provide that in a case where an employee who is thereafter promoted to a position that is in the unclassified pension plan, the promoted employee may elect to stay in the classified pension plan. The Miami Beach Employees' Retirement Plan (MBERP) is the pension plan for CWA bargaining unit members, except for those employees who previously elected to remain in the 401-A retirement program (in lieu of participating in the City's pension plan). The current benefits and member contributions provided by the MBERP shall remain in effect for the term of this Agreement, except as follows: 10% Cap on Overtime for Plan Members Hired before February 21, 1994 For those employees in the Miami Beach Employees' Retirement Plan (MBERP) who were hired before February 21, 1994, overtime included in pensionable earnings received after the effective date will be limited to a maximum of 10% above the employee's highest pensionable compensation, if applicable~ each year. Upon reaching the 10% maximum cap within a fiscal year, any additional overtime earnings in that year shall not be subject to the pension contribution. CWA-34 7/12/2013 7:07:10 PM 201 "·· time at th&.tifne eftermhmtion Partial Lump Sum Distribution A member who retires under normal retirement (as that term is defined by the GERS) shall be allowed to convert 25% of the actuarial value of his/her pension benefit into a lump sum distribution. For example, if the normal retirement benefit is equal to $2,000 per month, the member may either receive $2,000 per month or the combination of $1,500 per month plus a single lump sum equal to the actuarial value of the other $500. This lump sum option shall not be available to early retirees, disability retirees, or beneficiaries receiving pre- retirement death benefits. The lump sum shall be calculated using the same discount rate and mortality rates used in the most recent Actuarial Valuation Report for the GERS. CWA-35 7/12/2013 7:07:10 PM 202 feduction. Final Average Monthly Earnings (FAME) The City and Union agree to change the creditable service component of the formula for calculation of the FAME for current members from two (2) highest paid years of creditable service to the five (5) highest paid years of creditable service as described below: a) For those employees who participate in the MBERP and are at normal retirement age or are 24 months or less from normal retirement age, as defined by Ordinance 2006-3504 as amended, as of September 30, 2010, the Final Average Monthly Earnings (FAME) is at one-twelfth (1/12) of the average annual earnings of the employee during the two (2) highest paid years of creditable service. b) For those employees who participate in the MBERP, and who are between 24 and 36 months from normal retirement age, as defined by Ordinance 2006-3504 as amended, as of September 30, 2010, the Final Average Monthly Earnings (FAME) means one-twelfth (1/12) of the average annual earnings of the employee during the three (3) highest paid years of creditable service. c) For those employees who participate in the MBERP, and who are between 36 and 48 months from normal retirement age, as defined by Ordinance 2006-3504 as amended, as of September 30, 2010, the Final Average Monthly Earnings (FAME) means one-twelfth (1/12) of the average annual earnings of the employee during the four (4) highest paid years of creditable service. d) _For those employees who participate in the MBERP, and who are more than 48 months from normal retirement age, as defined by Ordinance 2006-3504 as amended, as of September 30, 2010, the Final Average Monthly Earnings (FAME) means one-twelfth (1/12) of the average annual earnings of the employee during the five (5) highest paid years of creditable service. Deferred Retirenumt Option Plan (DROP) CWA-36 7/12/2013 7:07:10 PM 203 The current benefits and member contributions provided by the MBERP shall remain in effect for employees hired on or after the date this Agreement is ratified, except as follows: 1) The normal retirement date is age 55 with at least thirty (30) years of creditable service, or age 62 with at least five (5) years of creditable service. 2) The early retirement date is the date on which the member's age plus years of creditable service equal 75, with a minimum age of 55. 3) The Final Average Monthly Earnings (FAME) shall be an average of the highest five (5) years of employment. 4) The benefit multiplier shall be two and one half percent (2.5%) multiplied by the member's years of creditable service, subject to a maximum of 80% of the member's FAME. 5) The retiree Cost of Living Adjustment (COLA) will be one and one half percent (1.5%) per year, with the first adjustment deferred to one (1) year after the end of the Deferred Retirement Option Plan (DROP). 6) The employee contribution will be 10% of salary. 7) The standard form of benefit is a lifetime annuity. 8) Members who separate from City employment with five (5) or more years of creditable service but prior to the normal or early retirement date shall be eligible to receive a normal retirement benefit at age 62. 9) a rl:ithxlmurn of fivr'l yBmtt> CWA-37 7/12/2013 7:07:10 PM 204 Reduction In Vesting Requirement for Emplovees Hired On or After February 21, 1994 The minimum vesting requirement for pension plan members hired on or after February 21, 1994, is 5 years of service. Reduction Jn Normal Retirement Age for Employees Hired On or After February 21 1 1994 The normal retirement age for pension plan members is as follows: • For members hired prior to February 21, 1994, the normal retirement age is 50. • For members hired on or after February 21, 1994 but prior to September 30, 201QG9, the normal retirement age is age 55. • For members hired on or after September 30, 2010, the normal retirement age is 62. Other Requirements and Conditions In order to be eligible for each of the above pension benefits, each employee must be actively employed on the effective date of the benefit and must thereafter retire. All of the foregoing pension changes shall apply prospectively, not retroactively. All other provisions of the MBERP plan not specifically addressed in this Agreement shall remain unchanged. Retiree Health Insurance a) The parties agree that any bargaining unit member who previously elected or who elects to participate in the 401-A retirement program (in lieu of participating in the City's pension plan) shall be required to work at least ten (1 0) years before becoming eligible for any retiree health benefits from the City. b) The parties agree that any bargaining unit member who is eligible for retiree health benefits from the City must make a one-time irrevocable election to continue receipt of health benefits via the City's plan at the time that the employee terminates City employment. The parties also agree that if a member initially elects to continue under City health insurance, but thereafter discontinues or is discontinued from such coverage, then the retiree may resume coverage only at their own expense, without any employer contribution whatsoever. c) Employees hired on or after February 2, 2006, will be entitled to a City contribution against the cost of continued health insurance coverage in the City's health insurance plan after retirement (or separation) from City employment, as set forth in this section. Any employee hired on or after this Agreement is ratified, who then remains employed until reaching eligibility for normal retirement, and who elects to continue insurance coverage under the City's health plan, shall upon receipt of normal CWA-38 7/12/2013 7:07:10 PM 205 retirement benefits also receive an additional separate supplemental monthly stipend payment in the initial amount of $10.00 per year of credited service, up to a maximum of $250.00 per month until age 65, and $5.00 per year of credited service up to a maximum of $125.00 per month thereafter. There shall be no other City contribution toward the cost of continued health insurance coverage for such employees and this benefit shall be paid only during the life of the retiree. Section 8.14 Vacation Benefits. Consistent with applicable ordinances, the vacation benefits enjoyed presently by the employees covered by this Agreement shall continue. Section 8.15 Sick and Vacation Leave Accrual and Maximum Payment on Termination. a) Employees shall be entitled to twelve paid days a year due to illness for themselves or family members. b) The present policy concerning sick leave, including the policy for payment of accrued sick and vacation time combined, up to a maximum of one year's salary, upon termination, retirement, or death, shall continue for all employees hired before October 1, 1978. c) All employees hired after October 1, 1978 shall, under applicable ordinances, rules, and regulations shall be allowed to accrue no more than 500 vacation hours effective October 1, 2006, and except in accordance with provisions for postponement of vacation leave as set forth in Article 8.14 of this Agreement; be permitted to transfer sick leave in excess of 360 hours to vacation leave at the rate of two days' sick leave to one day vacation leave to be used in the pay period year when transferred; be permitted a maximum payment at time of termination, death, or retirement of no more than 620 hours (effective upon ratification of this agreement) vacation leave and one half of sick leave to a maximum of 600 hours. Section 8.16 Public Safety Public Safety Communications Unit (PSCU). a) Persons hired into the classification of Dispatcher Trainee will receive a 3% increase after six (6) months of satisfactory service; b) Upon being certified by the Police Chief as being fully qualified to dispatch both Police and Fire calls, a Dispatcher will receive a three percent (3%) increase (in lieu of the prior one-step increase) while CWA-39 7/12/2013 7:07:10 PM 206 assigned to PSCU. The City can require employees to dispatch both Police and Fire calls. However, an employee hired before September of 1995 who is not already trained in both police and fire calls as of the April 8, 2002, can continue to dispatch either fire or police calls; c) Dispatchers, Communication Operators, and Complaint Operator ll's who are designated as certified training officers shall receive one dollar per hour for all hours worked in a training capacity. All employees who express an interest and whose last performance evaluation was satisfactory shall be considered eligible for certification as aCTO. Generally, an employee without CTO certification shall not be required to perform in a training capacity unless a CTO is not available. However, if a Non- CTO is mandated to train, he/she will also receive the stipend. Section 8.17 Longevity Integration \rOfHi&VHy for Lifeguard I, Lifeguard ll and Lifeguard Lieutenant only. rA~lALi:dflrl Vnryw<0 wwfi Serlfitt:rL!fi fit '"~4. ·~ ·~ '!W~ ~, Va~r<" h Kt.f-· L,0·"/0 iC~rs 5 .. bcii iCi Yrrars Yiei0 20 y ..:100''10 CWA-40 7/12/2013 7:07:10 PM 207 ~ars Section 8.18 Perfect Attendance Bonus. Employees who perform the full scope of their regularly assigned classification for each fiscal year shall receive a lump sum bonus of $300.00 (non-pensionable earnings) provided that they have not used sick leave or been absent for any reason that was not authorized at least 48 hours in advance. An employee will also be allowed two (2) incidents of tardiness and one (1) emergency vacation. Employees out on ISC will not be eligible for the perfect attendance bonus. Religious/Sick and BereavemenUSick shall not be counted against employees under this section. Section 8.19 Lead Person. An employee in the Carpenter, Electrician, Painter, Plumber, and Air Conditioning Mechanic, positions in the Property Management Division will receive a five percent (5%) supplement for Lead pay if the following conditions are met: a) The employee is in charge of a construction project, b) The construction project consists of four (4) or more employees, c) The Lead Person will have three (3) years of experience in his/her position with the City of Miami Beach, d) The Lead Person will have most recent three (3) years of performance appraisals of 75 or above. CWA-41 7/12/2013 7:07:10 PM 208 Section 8.20 Union Conventions. Two (2) delegates of the Union will be granted a leave of absence with pay, not to exceed two (2) weeks in any one year, for the purpose of attending State and International conventions. The Union will provide the City with the name(s) of the delegate(s) and provide the dates and locations of any such conventions for which a leave of absence is requested six (6) weeks in advance of the convention so that the department can make appropriate arrangements. This time shall not be deducted from the Union time bank. Section 8.21 Orientation. The union shall have the right to send two of the four designated Union representatives, authorized with pay pursuant to the Union Time Bank for time he/she would have otherwise been working to attend and participate in new employee orientation conducted by Labor Relations and Human Resources where bargaining unit members are present. Section 8.22 Educational Leave and Tuition Reimbursement. The City's tuition reimbursement program shall be continued for the term of this Agreement. Section 8.23 Property Management License(s) Maintenance. (Required continuing education/certification for current position) Employees in the Property Management Division who in order to maintain their licenses as required in their job descriptions, and have to attend continuing education classes shall be paid their straight hourly wages for all required hours up to 20 hours a year: provided that no additional pay shall be made to the employees if the training is provided by the City during regular work hours. Any hours spent attending training under this section shall count as hours worked. t"hi''H1i'¥!1'1 .Pz"tl'f\ Statl'fh1t··Fit¥H.ia Lieutonat'HL PnotGt,;~;rd! :>nd Poz::l\ ... t;~:;uard.l! etFiflE'I\UF&,iJ.!1lHJK::.t€:1n hAJVGUF1ti··rnt.Jm!am ··t+n EA10t'?f(1B,ntw JV!(s<mJFH····HHd+H CWA-42 7/12/2013 7:07:10 PM 209 CWA-43 7/12/2013 7:07:10 PM 210 Section 9.1 Discrimination. ARTICLE 9 GENERAL PROVISIONS In accordance with applicable federal, state, and local law, the City and the Union agree not to discriminate against any employee on the basis of race, creed, color, religion, disability, sex, national origin, age, sexual orientation, marital status or political beliefs. Section 9.2 Meetings Between Parties. At the reasonable request of either party, the Union President, or his/her representative, and the City Manager's designee for Labor Relations, or his/her representative, shall meet at a mutually agreed time and place to discuss matters of concern. Whenever time permits, the party requesting the meeting shall submit written notice of the subject matter to be discussed. Such notice shall be submitted one week in advance of the proposed meeting date. Whenever the Union President, or his/her representative, makes suggestions or recommendations to the City Manager, or his/her designee for Labor Relations, specifically concerning productivity of job safety, the City Manager, or his/her designee for Labor Relations, will respond as appropriate. Section 9.3 Reduction in Work Force. When there is a reduction in the work force, employees will be laid off in accordance with their length of service and their ability to perform the work available. When two or more employees have similar ability, the employee with the least amount of service will be the first one to be laid ar~ t0hm ir+a4~01rz+r"1; wllltm Section 9.4 Work Rules. The City will provide the Union with a copy of any written rules that are instituted or modified during the term of this Agreement affecting employees in the bargaining unit. In the event the City desires to alter, amend, or modify existing written work rules, or promulgate new written work rules, the proposed changes will be submitted for review to a joint labor/management committee. The City shall have two (2) representatives and CWA-44 7/12/2013 7:07:10 PM 211 the Union shall have two (2) representatives on this committee, which will make recommendations to the City Manager. The proposed changes shall not become effective until a final decision of the City Manager has been rendered. No Personnel Rule, Work Rule or any other rule, or application thereof shall in any manner conflict with any provisions of this agreement, and such rules shall be reasonable. Section 9.5 Probationary Employees. A probationary employee who is dismissed without cause shall have the right to discuss with the appointing officer the reasons for such dismissal at a mutually agreed to time. Following such meeting, a probationary employee, if he/she so desires, shall have the right to further review the reasons for such dismissal with the City Manager or his/her designated designee for Labor Relations at a mutually agreed to time. It is expressly understood, however, that the appointing officer retains the exclusive discretion with respect to the retention or dismissal of probationary employees. Periods of absence shall cause the probationary period to be extended for an equal amount of time. At the request of the appointing authority, the City Manager, or his/her designee for Human Resources may extend the probationary period for up to three (3) additional months provided that the reasons for extension are given to the employee in advance of the expiration of the initial probationary period. The City acknowledges the importance of giving timely performance appraisals and feedback to probationary employees. Section 9.6 "Temporary Employees". The City shall have the unrestricted right to hire up to one hundred (100) "temporary" employees in the bargaining unit, provided they are not hired at the detriment of the bargaining unit employees. The number of temporary employees working in each Division shall not exceed 50% of the number of positions in that Division. Temporary employees being utilized to fill in on short-term vacancies shall not be considered as a detriment to the bargaining unit's employees. Such "temporary" employees shall be paid at rates set in the sole discretion of management and a "temporary" employee's employment service may not exceed one (1) continuous year at any one time. "Temporary" employees may not work in a classification wherein a permanent Civil Service employee is laid off. The Human Resources Department shall send the Union a report of "temporary" hires on a monthly basis. "Temporary" employees shall not be covered by Civil Service or Personnel Board Rules, and they shall serve at the will of their employer without right of appeal or access to the grievance procedure contained herein, and they shall not receive any fringe benefits or pension benefits. Terminated "temporary" employees may be re- CWA-45 7/12/2013 7:07:10 PM 212 hired if their separation is under honorable circumstances, Regarding the implementation of the one hundred (1 00) temporary positions, it is understood that those positions were not limited to, but could be used to develop a cadre of employees who, on short notice, could serve as backup for regular employees or for such things as vacancies caused by absences due to maternity, military leave, sick leave, off-duty injury, on-duty injury, and work overload. The examples cited herein are not meant to be all inclusive. It is further recognized that employees who retire "in good standing" who may be interested in working on a temporary or part-time basis, and should temporary work become available the retired employees will have the opportunity to make application for one of the temporary positions. Such part-time positions shall not be covered by Civil Service rules or regulations, will have no fringe or pension benefits, and the salary shall be at a rate determined by the City. Further, the temporary employees shall not have a choice of picking schedules, but will be assigned by the City's management on an as needed, when needed, basis. Section 9.7 Political Activities of Employees. Except as provided by State law and City of Miami Beach Personnel Rule 1, (b), the City shall not make, adopt or enforce any rule, regulation or policy; a) Forbidding or preventing employees from engaging or participating in politics or from becoming candidates for public office; b) Controlling or directing or tending to control or direct the political activities or affiliations of employees. It is understood that no political activities may be conducted by unit members during the employee's scheduled work day. Section 9.8 Safety. The City agrees to provide, at no cost to the employee, any appropriate safety equipment required to be worn or otherwise utilized by the employee. This shall include such items as hard hats, gloves, etc. Those employees issued such equipment will be responsible for such safety equipment, and any loss or damage due to the neglect of the employee may require the employee to pay for the replacement of said City-issued equipment. a) The City agrees to provide, upon request, up-to-date, non-glare screens for computer terminals. CWA-46 7/12/2013 7:07:10 PM 213 b) The City shall evaluate and provide, upon request, a wrist rest, which will help alleviate the stress upon the hands and arms of those employees performing repetitive motion, to all persons who type more than 50% of their workday. c) The City shall provide in each lifeguard stand a modern voice amplifier (bullhorn) to be used in providing safety. d) The City will agree to provide safety training to all Parking Enforcement employees as deemed appropriate by the City and Union. e) The Union is encouraged to have its members volunteer to serve on the Department Safety Committees that are being organized in each City Department. The bargaining unit member serving on the City's Safety Committees will not suffer any loss of benefits or wages for attendance at regularly scheduled meetings during regular scheduled work time. No overtime will be paid for attendance at such meetings. f) If there is a central, Citywide Safety Committee, the Union's President may be a member if he/she so requests. g) Upon request by an employee, the City Manager's designee for Risk Management shall audit the employees' work environment for correct ergonomic functionality and shall make reasonable and appropriate corrections. Those employees issued such equipment will be responsible for such safety equipment, and any loss or damage due to the neglect of the employee may require the employee to pay for the replacement of said City- issued equipment. Section 9.9 Parking. The City shall provide seventeen ( 17) parking spaces at a lot comparable to Lot 11 for the exclusive use of on-duty Lifeguards. Such parking spaces shall be clearly marked. This Section may become moot if the Lifeguards are able to work out a reporting system that would allow them to proceed directly by their private vehicles to their respective lifeguard stands. Section 9.10 Glasses and Hats. The City agrees to reimburse Lifeguards and Pool Guards I and II for the purchase and/or repair of sunglasses CWA-47 7/12/2013 7:07:10 PM 214 up to a maximum allowable reimbursement of $60.00 per employee in each fiscal year. In order to be reimbursed, the employee must request a reimbursement, in writing, and attach a store receipt reflecting such purchase and/or repair. Section 9.11 Notifls;ation in the Event of Transfer or Contracting Out When the City contemplates entering into a contract with an outside supplier or service agency to perform services presently being performed by bargaining unit employees and such contract shall result in the lay-off of any bargaining unit employee, the City agrees that it will, upon written request, meet and discuss with the representatives of the Union the effect of such contract upon members of the bargaining unit. If the City enters into such a contract and, as a result thereof, an employee will be laid off, the City agrees to ask the contractor to provide first consideration for such employee for any available work. In the event that the employee is not employed by the contractor, the City will offer such employee another available job with the City, if there is a budgeted vacancy and the employee affected by the subcontracting is qualified to perform. Questions of qualification to perform the job duties shall be decided in the sole discretion of the City Manager, or his/her designee for Human Resources. If there are no jobs available, the Reduction in Force provision contained in this Agreement shall apply, provided that such laid-off employee shall be recalled to work before the City hires new, permanent employee to perform the work of the classification held by the employee at the time of the layoff. This recall right shall exist for up to the individual's total service time with the City, but not to exceed two (2) years after the date of the person's layoff date, but such recall right shall cease as of two (2) years after layoff, or if the employee does not return to work as scheduled if he/she is offered a recall notice prior to the two (2) years. It shall be the responsibility of the laid-off employee to notify the Human Resources Department when technical skills, training, and experience have been enhanced during the lay-off period, which may allow the individual to apply for another bargaining unit job with the City. Nothing in this Section will be construed to limit the Union's right to bargain concerning the identified impact or effects of subcontracting out or transferring upon bargaining unit members. Section 9.12 Stress Reduction/Pollee Department's Public Safety Communications Unit. CWA-48 7/12/2013 7:07:10 PM 215 Those employees covered by this Agreement who work in the Miami Beach Police Department Communications Unit, will be given a stress reduction training program provided by the City. Such stress training will be a one-day stress seminar as given to sworn officers. Section 9.13 Bulletin Boards. The Union may, at its own expense, place a bulletin board in each department, not to exceed approximately three feet by two feet (3' x 2') in size. The bulletin boards shall be used for posting the following notices only: a) Notices of Union Meetings. b) Notices of Union Elections. c) Reports of Union Committees. d) Recreational and Social Affairs of the Union. e) Any material of informational nature related to CWA. Prior to posting, the material as described above shall be signed by an elected officer of the Union and submitted to the City Manager's designee for Labor Relations, for signature. Materials, notices or announcements which contain anything political or controversial that might reflect upon the City, any of its employees, or any other labor organizations among its employees, or any materials, notices, or announcements which violate any of the provisions of this Section, shall not be posted. Any materials that are posted which are not in conformance with this Section may be removed at the discretion of the City. Section 9.14 Seniority. a) Definition: Seniority, for purposes of application of this Agreement except as otherwise stated, is an employee's length of regular, full-time, continuous service with the City. CWA-49 7/12/2013 7:07:10 PM 216 When vacations are scheduled, permanent vacancies or shifts are filled, promotions are made to a position within the bargaining unit, seniority shall apply when all other factors are equal. Seniority will not d}~ln the event of same day hiring, seniority rank shall be determined in the order of standing on the eligibility list. Section 9.15 Shoes. CWA-50 7/12/2013 7:07:10 PM 217 I (2) Management representatives. Air Conditioning Mechanic Building Inspector Carpenter Carpenter II Coin Room Money Handler Electrical Inspector Electrician Elevator Inspector Uniform Shoes Code Compliance Administrator Communications Operator Complaint Operator II Crime Scene Technician I Crime Scene Technician II Code Compliance Officer I & II Dispatcher Engineering Assistant I, II, Ill Mason Masonry Helper Mechanical Inspector Painter Parking Meter Technician I, II Plumber Plumber Inspector Dispatcher Trainee Parking Enforcement Specialist I Parking Enforcement Specialist II Property Evidence Technician I Property Evidence Technician II Public Safety Specialist Reporting to work without the required uniform shoes shall result in the employee being sent home without pay, immediately, for the balance of the day and may result in disciplinary action, Section 9.16 Labor/Management Committee. There shall be a four (4) member labor/management committee with two (2) members each appointed by the CWA President and the City Manager or his/her designee for Labor Relations. The committee shall meet at mutually agreed times to discuss matters of common interest such as critical incident debriefing, absenteeism control, etc. The labor/management committee is not a forum for collective bargaining or resolving specific CWA-51 7/12/2013 7:07:10 PM 218 grievances. Labor Management Committee meetings shall not count against the Union Time Bank. Section 9.17 Promotions. Within 120 days of the date the Agreement is ratified by the City, the Labor-Management Committee will meet to discuss selection procedures relative to promotions of bargaining unit employees to other bargaining unit positions. Section 9.18 Beach Patrol Promotions. The parties agree as follows: 1) 2) classification. 1 3) ~ligible applicants for promotional exams shall be given a written and an oral examination. 4) Applicants must pass an ocean swim test under reasonably common conditions. Conduct of the swim test shall be monitored by Human Resources. 5) Applicants must have received at least a satisfactory evaluation in each element of their most recent performance review to be eligible to take the promotional examination. 6) The written tests shall be developed under the direction of Human Resources. The reading list for examination materials from which the questions are drawn will be set by the City Manager's designee for Human Resources after consultation with the Department Director and the Union. Any reading lists will be posted at least thirty (30) days prior to the administration of such tests. A copy of an examinee's graded answer sheet shall be furnished to the examinee upon completion of the grading, if requested. All challenges of questions on the written tests must be made in writing to the City Manager's designee for Human Resources within two (2) working days of the testing dates and he/she shall conclusively decide the challenge. 7) For the oral tests, questions shall be job related and evaluators shall use common criteria to assess the quality of candidates' answers and to determine scores. Final scores on oral examinations shall CWA-52 7/12/2013 7:07:10 PM 219 be the average of all scores made by evaluators. 8) Oral test evaluators shall be knowledgeable of the target position, shall include at least one person who is not a City employee, and shall be selected by Human Resources. 9) Promotional lists shall expire two (2) years after the posting of the results of a promotional test or where lists have been combined, two (2) years after the combining of the old and new lists. CWA-53 7112/2013 7:07:10 PM 220 ARTICLE 10 DRUG AND ALCOHOL TESTING ·Of Of J3f\.?JJt)f Wftttf+··<Hl·ft>'' H:YF)\!.+f<'·· Hii'&·· f:idi.;§i@'\} t>'<>Hfnffutadto or been 1F1V'1.11¥J'J'ct..;.n..;.m."'EJ£l!t1eH;t n1h41r CWA-54 7/12/2013 7:07:10 PM 221 Section 10.1. Part 40. Section 1 0.2. CWA-55 7/12/2013 7:07:10 PM 222 Initial Test GC/MS Confirm Level Test Level 1000 n /ml 150 n /ml 150 n /ml 50 n /ml 15 n /ml 300 n,Jml 300 n /ml 300 n /ml 150 n /ml 2000 n /ml 2 25 n /ml 25 n /ml 300 n /ml 150 n /ml I Section 10.4. Drug/Alcohol Random Screening. Section 10.5. Drug/Alcohol Reasonable Suspicion Testing. CWA-56 7/12/2013 7:07:10 PM 223 Section ~t},!f10.S Last Chance Agreement. Employees testing positive may be offered the opportunity to enter into a "Last Chance Agreement". Offering Agreement shall require participation in a rehabilitation program. unannounced fo!low-up testing for a period of two ~ears and such other requirements as set forth by the City. The City reserves the right to terminate an employee without providing him/her with a Last Chance Agreement. Employees under a Last Chance Agreement who test positive shall be terminated from employment with the City and this is not grievable under the grievance procedure. Employees may be given no more than one (1) chance for substance abuse rehabilitation during employment with the City. CWA-57 7/12/2013 7:07:10 PM 224 ARTICLE 11 ENTIRE AGREEMENT The Union acknowledges that during negotiations resulting in this Agreement, it had the right and opportunity to make demands and proposals with respect to any and all subjects not removed by law from the area of collective bargaining and that the complete understanding and agreements arrived at by the parties after exercise of that right and opportunity are set forth in this Agreement. Therefore, the Union waives the right, during the term of this Agreement, to bargain collectively with respect to any subject or matter referred to or covered in this Agreement, and it particularly waives the right to bargain (except impact bargaining) over the City's exercise or any of its management's rights set forth in Article 6 of this Agreement, e.g., changing work hour schedule, transferring employees, laying off employees, etc. This Agreement may be amended by mutual agreement of the parties but any amendments must be in writing and signed by duly authorized representatives of the parties before it will be effective. CWA-58 7/12/2013 7:07:10 PM 225 ARTICLE 12 SAVINGS If any provisions of this Agreement are subsequently declared by the proper legislative or judicial authority to be unlawful, unenforceable or not in accordance with applicable statutes or ordinances, all other provisions of this Agreement shall remain in full force and effect for the duration of this Agreement. Upon issuance of such a decision or declaration which is not appealed by either party, the parties shall, following a request by either party, negotiate in good faith on a substitute article, section or portion thereof. CWA-59 7/12/2013 7:07:10 PM 226 ARTICLE 13 TERM OF CONTRACT This agreement shall be become effective upon City Commission approval, and shall remain in effect until the 30th day of September_20-t2:_lli. It shall be automatically renewed thereafter from year to year unless either party shall notify the other in writing sixty (60) days prior to the anniversary date that it desires to modify this Agreement. In the event such notice is given, negotiations shall begin not later than thirty (30) days prior to the anniversary date of the Agreement. CWA-60 7/12/2013 7:07:10 PM 227 Executed by the parties hereto on the day of-------' COMMUNICATIONS WORKERS OF AMERICA CITY OF MIAMI BEACH Richard McKinnon CWA President By: __________ _ Jorge M. Gonz:alezJimmy L. Morales City Manager Approved by vote of the City Commission, ~~-~GGtobor27, 2010. ATTEST: City Clerk Matti Herrera Bower Mayor CWA-61 228 RATIFICATION This Agreement was ratified on by a majority vote of bargaining unit members represented by Communications Workers of America (CWA), employed by the City of Miami Beach. Attesting to the above are CWA Local 3178's Negotiation Team members: Richard D. McKinnon, President Warren Green, Member-Elect. Section 3 Jason Cassanova, Member-Eiect,:::;ection Q Martha Nino, Member-Eiect,§ection 1 Alex Ott, Member-Elect, Section 4 CWA-62 229 APPENDIX A CWA-63 230 Exhibit #1 Classification/Compensation Plan l~lassiflcatlon Range l~!asslllcatlon Range 1 Clerk H15 Complaint Operator II H26 Crime Analysis Specialist H26 Coin Room Money Handler H16 Financial Specialist II H26 Clerk Typist H17 Carpenter I H27 Dispatcher H27 Masonry Helper H18 Engineering Assistant II H27 Mason H27 Account Clerk I H20 Property Evidence Tech II H27 Admin Aide I H20 Data Entry Clerk H20 Carpenter II H28 Duplicating Equip Operator H20 Code Compliance Officer II H28 Permit Clerk I H20 Commission Reporter II H28 Police Records Technician H20 Financial Specialist Ill H28 Revenue Processor I H20 Police Fleet Specialist H28 Parking Enforcement Spec H22 Planning Technician H29 Account Clerk II H23 Engineering Assistant Ill H30 Meter Analyst H23 Field Inspector II H30 Parking Meter Tech I H23 Permit Clerk II H23 Crime Scene Technician I H31 Property Evidence Tech I H23 Police Photographer H31 Public Safety Specialist H23 Revenue Processor II H23 Air Conditioning Mechanic H34 Code Compliance Admin. H34 Admin Aide II H24 Crime Scene Technician II H34 Admin Secretary H24 Building Inspector H34 Buyer H24 Electrical Inspector H34 Engineering Assistant I H24 Electrician H34 Field Inspector I H24 Elevator Inspector H34 Financial Specialist I H24 Engineering Inspector H34 Painter H24 Mechanical Inspector H34 Parking Dispatcher H24 Plumber H34 Plumbing Inspector H34 Account Clerk Ill H25 Admin Asst I H25 Pool Guard I H50 Communications Operator H25 Dispatcher Trainee H25 Pool Guard II H52 Parking Enforcement Spec II H25 Lifeguard I H52 Parking Meter Tech II H25 Lifeguard II H56 Code Compliance Officer I H26 Commission Reporter I H26 Lifeguard Lt. H58 CWA-64 231 Ex:hmll#Za maxal Yeaa#ID01fi2·0·12f rL"''"''ifi,r~tinx,Jr. "H"'Jn Dhn !Effo:et"J41 tn thi> hrt p,ay ~'"'"'""'"'* 41tMtl¥lg ;,, n"'1 ~h"'"··20tf9\ bx R~ Mm rL"''"'"'"' --Min max ., HiS Annual ii?f\ 4©,1Aif iMif~ 11iili ~at ;; ;rt one nc $7ti,8iif,iiil 11iiil Annuat 11?4 ftQ7 !10 11A t: ttl!? iit: Hiiii Aifn;;,ai 11<4 QQi ;;;; iini acc 11 max An nAif $32,1) 19,ti0 $iiit;2ff :t ? c I Hii4 WHHitr! iiR?. !ICC HrJ .¢JIK: ?AA 0'1 v= .,. -·~ max An max 1!'1!! G!!!! AI! 11A77~ 11217 ~ I!!!P C!!A ,1fjj 2179 ~1 !! 4 '1 G!!fl i::H Aiiil, i itLiiil max Ann Ail Itt:!! 'tKO Ki !Ia'> 7!1!% on :~ H20 maxual C'JA GQC: !11 $50,i7max 2111 1 Anmax ecn cn1 .!IS! ±fll!: QQQ Q? ¥-,~~~:¥ H£1 Ailn;;,a! lt'1C tl?!! CQ es;;r 4tL4 ,74 max An max 0?0 AAtl !!K ±£12 'HA 1© * 1122 ~~ iM!MfmUt4 !!12? !!!!!!!!!! Aiiil An max 41? !!!!!!? !!Sf AiiitAti max 1123 Al\HrLH 11'1U !!??.A..!! t:t:t: ?.!!? A1 H217 Annl\U ±Afl 7;;4 !!!! ecf% 0114 ,iiit .,. ' o/ ~ H24 Annual !! q!! 4!!!!! A.J! $iiil; 5i1L34 11iiit !!A!! !In!! !!!J !!t:"t !!2? ?!! 11A? 0121£ A!! ~J12,@1f H25 AAnual HH! !IS} 1 ,115 &!!!! ru::H ;;o I H217 l AnnuHl $i2j287rl Hili Annu.r;l $41,11711.71 max AnnAA 11us;max7 HH! !!!!!!, iiil U?7 AnnuHl &A!! n;; '> n7 11CA 77!1 ftt: I H5i An::HAA 11 A r rur n .~u; !!KA ff!!G tfQ max An max ¢AA '1'17 !1"' I &:t:!!,"tj{J,tifl ·~ Annual $47,277,211 if!!!! .. UU!1! max An::HAA !Jjj t: lfff 7 !! 7 !!7ff tlt:K t!? I Hiti Annunl Kif !!!J? KA !!!! !!HUll! J22AA l!!!fi Qt:7 12? Hitll ec;; c.ce: 1 g ~~0,32 mm Anmax AnnuHl _,_ ~ ¥ ·=· ,_ n0n Annual 11AQ A\HUJ jjQ!f,Jia HiO AAnual HH! 77!f {11 !JQ? 71 If 77 CWA-65 232 [:! li I~ II 10 li I~ 2 ~ ~~ I~ I~ I~ 10 ~~ I< lc ~~ ll I~ I~ I~ 16 I~ I~ « >I~ I~ I fw I~ I~ I~ ~~~ ' I i It: I~ Iii It I~ lr 10 ~ f-- [Y I~ 10 ~~ I~ II lz; t fY I~ I~ I~ 0 I~ ~ e I~ ~~ I 0i ~ " It I Zi2~ ~ ~ Ia :;; I~ i:; ~ ~~ 2 fL 0< ~ ~ I~ lc I~ r; I ~0 '; !i Itt ~ ~ Iii I~ [0 I, ~~ I~ I~ I• i~ I; 12 I; r { J I~ I~ I~ 1 I,! r;; r~ 10 I; I~ 1~, 0 Iii <:ft< ~~ ~ I r,; 11 ~~ I~ !~ I~ !0 12 ~ i I~ j !I fG('( lg l~ti I~ I< yl1 I j 1; I~ 0# 01 1 ,: It: ') I~ I~ r;; fL{ 1 It /: I~ I w I t\i' It l ' j I' j; It I~ I! ~~ lr: t1 l1l I~ I~ I i : ~r-~ I~ H , I~ I~ I~ ~ \~ lw : I~ I~ ll ' 10 '~ It I~ .~ r~ 1%: c $ l I~ ~ I~ 2 !~ [0 ~ M s ;: ,~ ·r: ~~ ~ i '~ ~ ti I~ 0 I~ I~ ~i;j 0 ~ y rit ~~ I~ g (j I~ u~ ;~? 1¥ M I! ,: I~ (i2 l fG01 I~ ~ iJ . i~ ld 15 I~ f It ~ '" ~ ' <( ~ u ,£ : 10 I~ llil2 0iJ i! lz I~ I~ I i fl li r~ I~ r~ ® 3' 1 ~ w :it; m ,J. i ~-($ ' ($$ J.l<Q c w 1 c ~ J 0$ ~ < ~ l&l ~ C$ t1l iJ 0( 0( :::It U£ 233 IJ [~ '~ I~ I~ [t 1£ 234 I .. . I 235 00 -a ' N w 0) Exhibit#4~ Fiscal Year 201212013 and fiscal Year 201312014 11!2044 Classification/Compensation Plan -Reflects extension of ran~es for Ufe~uard ll and Ufequard Ueutanant: (Effective+** the 1st full pay period beaifll'llna October 201''h . .::;,11 inn .. w~, "n't2) Range Min Max Range Min Max H15 Annual $31,087.27 $45,023.65 H32 Annual $51,382.53 $81,178.04 H16 Annual $32,019.90 $46,374.36 H33 Annual $53,437.83 $84,425.16 H17 Annual $32,980.50 $47,765.59 H34 Annual $55,575.35 $87,802.16 H18 Annual $33,969.90 $49,198.57 H35 Annual $57,798.36 $91,314.25 H19 Annual $34,989.01 $50,674.52 H36 Annual $60,110.30 $94,966.82 H20 Annual $36,038.68 $52,194.75 H37 Annual $62,514.71 $98,765.49 H21 Annual $37,119.84 $53,760.58 H50 Annual $39,593.97 $57,900.62 H22 Annual $38,233.44 $55,373.41 H51 Annual $40,781.80 $60,216.64 H23 Annual $39,380.43 $57,034.61 H52 Annual $42,005.24 $62,625.30 H24 Annual $40,561.85 $59,315.99 H53 Annual $43,265.40 $65,130.32 H25 Annual $41,778.71 $61,688.64 H54 Annual $44,563.36 $67,735.53 I H26 Annual $43,032.07 $64,156.18 H55 Annual $45,900.27 $70,444.95 H27 Annual $44,323.03 $66,722.43 H56 Annual $47,277.19 ttU: t\tl"Y,J.7$7J,262Ji3 H28 Annual $45,652.72 $69,391.33 H57 Annual $48,695.58 $76,193.27 H29 Annual $47,022.30 $72,166.98 H58 Annual $52,162.85 $79,241.QJ:.$11· "}{}@ u H30 Annual $48,432.96 $75,053.66 H59 Annual $54,249.22 $82,410.63 H31 Annual $49,885.95 $78,055.81 H60 Annual-'V'$5&,~19.19 $85,707.04 - Exhibit #3 Fiscal Year 2014/2015 Classification/Com ensation Plan-Reflects 3% COLA on October 1 2014 H31 Annual CWA-70 237 APPENDIX 8 CWA-71 238 CITY OF MIAMI BEACH BARGAINING UNIT GRIEVANCE PROCEDURE FORM UNION GRIEVANCE#: LABOR RELATIONS GRIEVANCE#: II Instructions: Spaces 1-9 should be printed so that the same information appears at all steps. The lower porti to be completed at each step. 1. Bargaining Unit: COMMUNICATIONS WORKERS OF AMERICA (CWA}-LOCAL 3178 2. Date Grievant(s) became aware of the alleged 3. Grievant's Name(s) & Classification(s): violation(s): I I 4. Grievant's DepartmenUDivision & Telephone Ext. 5. Grievant's Immediate Supervisor & Telephone ( ): Ext. ( ): 6. StatemenUNature of Grievance: 7. Contract Article(s) Alleged Violated: 8. Suggested Adjustment: 9, Grievant's Signature Date Union Representative's Signature Date TO BE COMPLETED, SIGNED IN BLUE INK AND PRESENTED AT EACH STEP Step 1 -Presented by (signature/title) Date: Received by (signature/title): Date: STEP 1 -RESPONSE (FROM DIVISION TO PRESENTER) __ Grievance Denied (state why): __ Grievance Resolved (state how): (signature/title) Date: Received by (Print): Date; Step 2-Presented by (signature/title) Received by (signature/title): Date: Date: STEP 2-RESPONSE (FROM DEPARTMENT TO PRESENTER) __ Grievance Denied (state why): Grievance Resolved (state how): (signature/title) Date: Received by (Print): Date: Received by (signature/title): Step 3-Presented by (signature/title) Date: Date: STEP 3 -RESPONSE -Reply from City Manager's designee/Labor Relations is attached (signature/title) Date Received by (Print): Date: Received by (signature/title): ARBITRATION REQUEST/Presented by (signature/title) Date: Date: 239 RESOLUTION TO BE SUBMITTED 240