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Resolution No. 2018-46 Memorandum of Understanding Amending PBA Agreement - May 1, 2018 RESOLUTION NO. 2018-46 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF AVENTURA, FLORIDA, APPROVING A MEMORANDUM OF UNDERSTANDING AMENDING THE COLLECTIVE BARGAINING AGREEMENT BY AND BETWEEN THE CITY AND THE DADE COUNTY POLICE BENEVOLENT ASSOCIATION FOR THE PERIOD OCTOBER 1, 2016 THROUGH SEPTEMBER 30, 2019; PROVIDING FOR IMPLEMENTATION; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of Aventura (the "City") desires to ratify a Memorandum of Understanding (the "MOU") amending the Collective Bargaining Agreement between the City and the Dade County Police Benevolent Association (the "PBA") for the bargaining unit consisting of employees in the classification of Police Officer and Police Sergeant in effect from October 1, 2016 through September 30, 2019 (a copy of the MOU is attached hereto as Exhibit "A"); and WHEREAS, the MOU addresses amendments to the City of Aventura Police Officers' Retirement Plan (the "Plan") to permit Retirement Plan members hired on or after October 1, 2000 and before September 30, 2003 to purchase credited service for said years of service with such members paying the full cost of such credited service; and WHEREAS, the City Commission finds that this Resolution conforms with applicable law, enhances the health, safety and welfare, and is in the best interest of the City. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF AVENTURA, FLORIDA, THAT: City of Aventura Resolution No. 2018-46 Section 1. Recitals Adopted. The above-stated recitals are hereby confirmed and adopted. Section 2. Approval. The MOU between the City and the PBA, in substantially the form attached hereto as Exhibit "A," is hereby approved, and the City Manager is hereby authorized to execute the MOU on behalf of the City. Section 3. Implementation. The City Manager is hereby authorized to take any action which is necessary to implement this Resolution. Section 4. Effective Date. This Resolution shall become effective immediately upon its adoption. The foregoing Resolution was offered by Commissioner Shelley, who moved its adoption. The motion was seconded by Commissioner Landman, and upon being put to a vote, the vote was as follows: Commissioner Denise Landman Yes Commissioner Dr. Linda Marks Yes Commissioner Marc Narotsky Yes Commissioner Robert Shelley Yes Commissioner Howard Weinberg Yes Vice Mayor Gladys Mezrahi Yes Mayor Enid Weisman Yes PASSED AND ADOPTED this 1St day of May, 2018. Page 2of3 City of Aventura Resolution No. 2018-46 / C(C} Z ENID WEISMAN, MAYOR `,\ .\I I. 1 (6 :",f;. ", --Z‘'. - /' 11 11``x` ATTEST: c—`" ELLISA L. HORVAT MC CITY CLERK APPROVED AS TO LEGAL SUFFICIENCY: '- h7/\ /1, 1 CITY ATTO tEY This Resolution was filed in the Office of the City Clerk this I day of �Q , 2018. -- -,At/1/--1,0!)ff. ' CITY CLERK Page 3 of 3 MEMORANDUM OF UNDERSTANDING This Memorandum of Understanding is entered into by and between the City of Aventura (the"City")and the Miami-Dade County Police Benevolent Association (the"Union"). WHEREAS, the Union represents a bargaining unit of the City's police officers and sergeants; WHEREAS, the members of the bargaining unit represented by the Union are participants of the City of Aventura Police Officers' Retirement Plan (hereinafter "Retirement Plan"); WHEREAS,the Retirement Plan was established effective October 1, 2003; WHEREAS, bargaining unit members who were hired by the City between October 1, 2000 and September 30, 2003, are not entitled, under the current provisions of the Retirement Plan, to credited service for the years of service that they rendered to the City prior to the • effective date of the Retirement Plan; WHEREAS, the parties now wish to amend the Retirement Plan to permit Retirement Plan members hired on or after October 1, 2000 and before September 30, 2003 to purchase credited service for said years of service with such members paying the full cost of such credited service. NOW THEREFORE,the parties agree as follows: 1. By no later than May 31, 2018, the City shall adopt the ordinance amendment attached hereto as Exhibit"A"hereto. 2. This Memorandum of Understanding shall apply to the police officers listed in Exhibit "B"hereto. 3. The parties agree and understand that the City shall have no financial responsibility as to members' purchase of credited service and that the individual members will bear the full responsibility to pay any costs and fees associated with such purchase, including the cost of any actuarial studies necessitated by same. 4. The parties have had the opportunity to consult with legal counsel of their choosing prior to executing this MOU. 5. This MOU shall become effective upon ratification by the bargaining unit members represented by the PBA and by the City Commission, whichever occurs later. In the event that this MOU is not fully ratified for any reason, it shall have no force or effect upon either party. 6. Other than as specifically set forth herein, this MOU does not modify the parties' collective bargaining agreement. 7. The parties agree that this MOU represents the Parties' entire agreement with regards to this subject matter, and that it cannot be amended or modified without express written consent of the parties. Done this, Dday of t7 V ,2018 City of Aventura: Miami-Dade County Police Benevolent Association OP Su •. Gran Forwager Steadman Stahl, President 67;4: 2 l Date Date I ORDINANCE NO. 2018- AN ORDINANCE OF THE CITY OF AVENTURA, FLORIDA, AMENDING CHAPTER 36 "RETIREMENT," ARTICLE II "POLICE PENSION PLAN AND TRUST FUND," BY AMENDING SECTION 36-37 "TIME OF HIRE" TO PROVIDE RULES ALLOWING OFFICERS HIRED BETWEEN OCTOBER 1, 2000 AND SEPTEMBER 30, 2003 TO PURCHASE CREDITED SERVICE UNDER THE CITY OF AVENTURA POLICE OFFICERS' RETIREMENT PLAN FOR THE YEARS OF SERVICE THAT THEY RENDERED TO THE CITY AS POLICE OFFICERS PRIOR TO THE EFFECTIVE DATE OF THE RETIREMENT PLAN; PROVIDING FOR REPEAL; PROVIDING FOR SEVERABILITY; PROVIDING FOR INCLUSION IN THE CODE; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of Aventura (the "City") maintains a defined benefit pension plan for its certified police officers, which is known as the City of Aventura Police Officers' Retirement Plan (the "Plan"), and which is codified in Chapter 36 of the City Code; and WHEREAS, the City and the Police Benevolent Association have entered into an agreement to permit police officers hired between October 1, 2000 and September 30, 2003, to purchase credited service under the Plan for the years of service that they rendered to the City as police officers prior to October 1, 2003, the effective date of the Plan; and WHEREAS, the City intends hereby to implement said agreement by amending the Plan accordingly; WHEREAS, the City Commission finds that it is in the best interest of the City and its employees to amend the Plan; and WHEREAS, prior to Second Reading of this Ordinance, the City Commission has received, reviewed and considered an actuarial impact statement describing the actual impact of the amendments provided for herein. City of Aventura Ordinance No. 2018- NOW THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF AVENTURA, FLORIDA': Section 1. That each of the above-stated recitals are hereby adopted and confirmed. Section 2. That Chapter 36 "Retirement," Article II "Police Pension Plan and Trust Fund," Section 36-37, "Time of hire," of the City Code of Ordinances be amended as follows: Sec. 36-37. - [Time of hire.] Employees hired as a City of Aventura Police Officer prior to October 1, 2000 shall be eligible to receive credited service from the initial date of employment as a police officer at the plan's three percent benefit accrual rate, provided the employee transfers all funds from the City 401(a) plan to the defined benefit plan effective October 1, 2003. Employees hired as a City of Aventura Police Officer prior to October 1, 2000 who elect not to transfer all funds from the City 401(a) plan shall only receive prior credited service at a two percent benefit accrual rate. The City shall make no further contributions to the 401(a) plan. Employees hired as a City of Aventura Police Officer on or after October 1 , 2000 shall receive credited service effective October 1, 2003 and shall retain all balances to their credit in the 401(a) plan; provided, however, that the City shall make no further contributions to the 401(a) plan. Employees hired as a City of Aventura Police Officer on or after October 1 , 2000 shall continue to accrue vesting rights in the 401(a), but the City shall make no additional contributions. Any employee hired on or after October 1 , 2000 and prior to October 1, 2003, and named in the Memorandum of Understanding between the City of Aventura and the Police Benevolent Association, dated February 26, 2018 may purchase credited service for service rendered to the City as a police officer between October 1, 2000 and September 30, 2003 as set forth below: a) Said election shall be made in writing no later than August 31, 2018 on a form approved by the Board of Trustees; ' Words in strikeout type are deletions from exist text and word in underline type are additions to existing text. Page 2 of 6 City of Aventura Ordinance No. 2018- b) Subject to Paragraph (4) of Subsection (f) below, prior to the employee's separation from service with the City for any reason, the employee shall pay the full actuarial cost of the purchase, as determined by the plan's actuary; c) The employee shall pay in advance any expenses related to the actuarial calculation, as determined by the Board of Trustees; d) The payment shall be made by either, or a combination, of the following means: 1) trustee to trustee transfer from an eligible retirement plan or a 457 plan, and 2) installment payments including interest at the plan's actuarially assumed rate of investment return pursuant to an irrevocable payroll deduction authorization as set forth in Subsection (f) below. e) Any years and months of service purchased hereunder shall be treated as credited service within the meaning of Section 36-22 of the retirement plan. f) Installment payments shall be subject to the following conditions: 1) The employee must execute an irrevocable payroll deduction authorization form, specifying the amount of the bi-weekly deductions and the duration of the authorization. The specified amount shall be that determined by the plan's actuary to be sufficient to pay the entire actuarial cost of the purchase within the specified duration of the payroll deduction authorization, which duration shall not extend beyond the earlier of: A. Three years from the date of the employee's first paycheck after September 30, 2018; and B. The earliest date upon which the employee would become eligible for normal retirement under Section 36- 26. 2) The deducted amounts shall be contributed to the retirement plan and shall be considered employee contributions that are "picked-up" (within the meaning of Section 414(h)(2) of the Internal Revenue Code) by the City. The employee shall not be entitled to any option of directly receiving cash in lieu of the Page 3 of 6 City of Aventura Ordinance No. 2018-_ amounts subject to deduction. Picked-up contributions shall be made from the same source as the payment of salary and wages to the employee; 3) The amount provided in the payroll deduction authorization shall include interest, as calculated by the plan's actuary, at the retirement plan's actuarially assumed rate of return on investments. 4) If, upon the date of the employee's separation from service with the City for any reason, there remains an unpaid balance of the actuarial cost of the purchase, then the employee shall receive years (and fractions thereof) of service credit in accordance with the amount of the cost paid prior to separation. Section 3. Repeal. All sections or parts of sections of the Code of Ordinances of the City of Aventura, all ordinances or parts of ordinances, and all resolutions or parts of resolutions in conflict herewith, be and the same are hereby repealed to the extent of such conflict. Section 4. Severability. Should any section or provision of this Ordinance, or any paragraph, sentence or word, be declared by a Court of competent jurisdiction to be invalid, such decision shall not affect the validity of the remainder hereof, as a whole or a part hereof, other than the part declared to be invalid. Section 5. Inclusion in the Code. It is the intention of the City Commission of the City of Aventura that the provisions of this Ordinance shall become and be made a part of the Code of Ordinances of the City of Aventura and that the sections of this Ordinance may be renumbered or relettered and the word "ordinance" may be changed to "Chapter", "Section", "Article", or such other appropriate word or phrase, the use of which shall accomplish the intentions herein expressed. Section 6. Effective Date. This Ordinance shall be effective upon passage by the City Commission on second reading. Page 4 of 6 City of Aventura Ordinance No. 2018- The foregoing Ordinance was offered by Commissioner Shelley, who moved its adoption on first reading. This motion was seconded by Commissioner Dr. Marks, and upon being put to a vote, the vote was as follows: Commissioner Denise Landman Yes Commissioner Dr. Linda Marks Yes Commissioner Marc Narotsky Yes Commissioner Robert Shelley Yes Commissioner Howard Weinberg Yes Vice Mayor Gladys Mezrahi Yes Mayor Enid Weisman Yes The foregoing Ordinance was offered by Commissioner who moved its adoption on second reading. This motion was seconded by Commissioner upon being put to a vote, the vote was as follows: Commissioner Denise Landman Commissioner Dr. Linda Marks Commissioner Marc Narotsky Commissioner Robert Shelley Commissioner Howard Weinberg Vice Mayor Gladys Mezrahi Mayor Enid Weisman PASSED on first reading this 1st day of May, 2018. PASSED AND ADOPTED on second reading this 12th day of June, 2018. Page 5 or 6 City of Aventura Ordinance No. 2018-_ ENID WEISMAN, MAYOR ATTEST: ELLISA HORVATH, MMC CITY CLERK APPROVED AS TO LEGAL SUFFICIENCY: CITY ATTORNEY Page 6 of 6 -o ti M .- N . '— 0) N (N _M N CCD 111 E O O O O O O O O OC O co h in ~ O co co CEO Ch cc Cp C j M E E E CO N N N N N '— '— .— N- LC) N N U co co co co co co co co co co co CO CO N C O 0 0 0 0 0 0 0 0 0 0 0 0 C 0 0 0 CD CD CD CD 0 0 0 0 0 0 1220000000000000 a) d U OO O O O C) O NO NO O C) CO 2 M co O O I O aM ~ W CO M co N N- cy) Cn ti m = (h O) 0) a) CD O O lC) N N CA z CO O O M M M V L X W O) O) N M N CO CO .�- N- N O) r O) O) co CO CO V O) M N (N O) co ND a) J N — O C a3C'� N @ O N U `O L UCD C co (6 T 0 co woo o T 5 la_ CL O ii Q a J U < (9 CD N a) (O C E C C O C C -Q .� ` L fn U EU a) f Y o- = w °�' Co c.) c.) ca C U U U U w w (.5ULi _U L O O O O O O O O O O O O O - N M IC) CO N- CO O) •t— (N CO U