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Resolution No. 2019-31 Approving Memorandum of Understanding Amending the Dade County Police Benevolent Association Collective Bargaining Agreement - June 11, 2019 RESOLUTION NO. 2019-31 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF AVENTURA, FLORIDA, APPROVING A MEMORANDUM OF UNDERSTANDING AMENDING THE COLLECTIVE BARGAINING AGREEMENT BETWEEN THE DADE COUNTY POLICE BENEVOLENT ASSOCIATION AND THE CITY OF AVENTURA; AUTHORIZING THE CITY MANAGER TO EXECUTE AND TO TAKE ALL ACTIONS NECESSARY TO IMPLEMENT THE MEMORANDUM OF UNDERSTANDING; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the Dade County Police Benevolent Association (the "Union") and the City of Aventura, Florida (the "City") entered into a Collective Bargaining Agreement for the period of October 1, 2016 to September 30, 2019 ("CBA"), which sets forth the terms and conditions of employment of the City's police officers and sergeants; and WHEREAS, the police officers and sergeants are members of the City of Aventura Police Officers' Retirement Plan (the "Plan"), a defined benefit pension plan sponsored by the City, the terms of which are codified in the City's Code of Ordinances ("Code") and the CBA; and WHEREAS, the Florida Division of Retirement recently contacted the City and expressed concerns about certain pension provisions of the Code relative to its compliance with statutory law; and WHEREAS, the Police Pension attorney, Sugarman and Susskind, and the Police Pension actuary, Foster and Foster, recommended certain changes to the Code to address the Division of Retirement's compliance concerns; and WHEREAS, the City and Union adopted the recommended changes amending the Code via a Memorandum of Understanding ("MOU") as reflected in Exhibit "A" attached hereto; and WHEREAS, the City Commission finds that ratification of the MOU is in the best interest of the City. City of Aventura Resolution No. 2019-31 NOW THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF AVENTURA, FLORIDA, AS FOLLOWS: Section 1: That the foregoing "WHEREAS" clauses are ratified and confirmed as being true and correct and are made a specific part of this Resolution. Section 2. That the Memorandum of Understanding amending the Collective Bargaining Agreement between the City and Union attached hereto as Exhibit "A" is hereby approved. Section 3. That the City Manager shall execute the Memorandum of Understanding on behalf of the City. Section 4: That this Resolution shall take effect immediately upon adoption. The foregoing Resolution was offered by Commissioner Shelley, who moved its adoption. The motion was seconded by Commissioner Mezrahi, and upon being put to a vote, the vote was as follows: Commissioner Dr. Linda Marks Yes Commissioner Gladys Mezrahi Yes Commissioner Marc Narotsky Yes Commissioner Robert Shelley Yes Commissioner Howard Weinberg Yes Vice Mayor Denise Landman Yes Mayor Enid Weisman Yes PASSED AND ADOPTED this 11th day of June, 2019. Page 2 of 3 City of Aventura Resolution No. 2019-31 l E ID WEIS AN, MAYOR pi" ,* I ai51" ATTEST: ELLISA L. HORVAT ,fin' C CITY CLERK APPROVED AS T LEGAL SUFFICIENCY: i/V1\d CITY A ORNEY This Resolution was filed in the Office of the City Clerk this i i day of J UOC 2019. CITY CLERK Page 3 of 3 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF AVENTURA,FLORIDA AND THE DADE COUNTY POLICE BENEVOLENT ASSOCIATION This Memorandum of Understanding is entered into this I I day of Y1e. , 2019 by and between the City of Aventura, Florida (the "City") and the Dade County Police Benevolent Association (the "Union"). The City and the Union are collectively referred to as the "Parties." WHEREAS,the Parties entered into a Collective Bargaining Agreement for the period of October 1, 2016 to September 30, 2019 ("CBA"), which sets forth the terms and conditions of employment of the City's police officers and sergeants; and WHEREAS,the police officers and sergeants are members of the City of Aventura Police Officers' Retirement Plan (the "Plan"), a defined benefit pension plan sponsored by the City, the terms of which are codified in the City's Code of Ordinances ("Code") and the CBA; and WHEREAS, the City and Union have agreed to certain changes to the Code relative to Plan benefits eligibility, deferred retirement option plan (DROP) participation and Board of Trustees composition, which amends the Code as reflected in Exhibit"A" attached hereto; and WHEREAS,because these changes constitute a mandatory subject of bargaining,they are subject to mutual agreement by the Parties. NOW,THEREFORE, the Parties agree as follows: 1. The above recitals are true and correct and incorporated herein by reference. 2. The Code shall be amended by the City as reflected in Exhibit "A" following the ratification of this Memorandum of Understanding. 3. This Memorandum of Understanding 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 Memorandum of Understanding is not fully ratified for any reason, it shall have no force or effect upon either party. 4. The Parties have had the opportunity to consult with legal counsel of their choosing prior to executing this Memorandum of Understanding. 5. Other than as specifically set forth herein, this Memorandum of Understanding does not modify the Parties' CBA. 6. The Parties agree that this Memorandum of Understanding represents the Parties' entire agreement with regards to this subject matter, and that it cannot be amended or modified without express written consent. DADE COUNTY POLICE CITY OF AVENTURA, FLORIDA BENEVOLENT ASSOCIATION By: By:(:(,,,,/2, — / 0 .At..G _ a4/< Steadman Stahl Ronald Jason President City M. .ter Section 36-22. Definitions. Member shall mean a police officer actively employed by the City for whom contributions to the Retirement Plan are made as required by this article. Members shall also include retired police officers and those police officers participating in the DROP established by section 36-35. The chief of policeand-any-such-ether - . - • : • , : •• .- .- .. -. . : , shall have the option to participate in this plan or another city sponsored Retirement Plan. Should the chief of police opt to participate in another city sponsored Retirement Plan,the chief of police may not serve as or vote for an elected trustee. Police officer shall mean any person employed by the City police department for whom contributions are made or picked up to the Retirement Plan as required by this article or who participates in the DROP established by section 36-35 and who is certified as a police officer as a condition of employment in accordance with the provisions of F.S. § 943.1395, and who is vested with the authority to bear arms and make arrests,and whose primary responsibility is the prevention and detection of crime or the enforcement of the penal,criminal,traffic,or highway laws of the State,including supervisory and managerial personnel. Sec. 36-23. -Administration of the Retirement Plan. (a) The sole and exclusive administration of, and the responsibility for the proper, effective operation of the Retirement Plan and for implementing the provisions of this article is vested in a Board of Trustees. (b) The Board of Trustees shall consist of five persons; two of whom shall be legal residents of the City of Aventura and who shall be appointed by the City Commission from a list provided by the City Manager. Two members of the Board of Trustees shall be police officers elected by a majority of the police officers who are active members of the plan. Police officers participating in the DROP established by section 36-35 may serve as elected trustees but may not vote in such elections. A fifth member of the Board shall be chosen by a majority of the other four Trustees, and such person's name shall be submitted to the City Commission for appointment. The City Commission shall appoint the fifth member selected by the other four Trustees as a ministerial duty. (c) All Trustees shall serve a term of four years_:If a vacancy shall occur prior to the expiration of a member's term due to the resignation of a trustee,an elected trustee no longer being employed as a full-time City police officer, or an appointed trustee no longer residing in the City, a replacement member shall be chosen in the same manner as the person who has left office. A replacement Trustee shall serve a full four year term measured from the date of replacement. All Trustees shall serve until their replacements are selected. Section 36-26. Service Retirement. (a) Retirement date. i. Prior to October 1, 2018, a member may retire on the first day of the month coincident with or next following the earlier of: the date upon which the member completes 25 years of credited service, regardless of age; or the date upon which the member attains age 55 with ten years of credited service. There shall be no mandatory retirement age. ii. -Effective October 1, 2018, a member may retire on the first day of the month coincident with or next following the earlier of: the date upon which the member completes 22.5 years of credited service, regardless of age; or the date upon which the member attains age 5-755 with at least ten years of credited service. Any provision of this plan to the contrary notwithstanding, a member's accrued benefit shall become 100 percent vested upon the attainment of the normal retirement date and shall not be less than the benefit that the member had accrued as of October 1, 2018. (b) Benefit rate Normal retirement A normal retirement benefit payable to a member retiring upon attaining age 55 with ten years of credited service shall be determined by multiplying three 2.75 percent of final monthly compensation by the number of years of credited service_-te I.!• Al . of service, the normal retirement benefit shall be determined by multiplying two 2.75 percent of final monthly compensation by each year in excess of 1029.091 yews of service. A member receiving a normal retirement benefit hereunder shall not be eligible to participate in the DROP established by section 36-35. (ii) Service retirement based on 22.5 or more years of service. A service retirement benefit payable to a member retiring with 22.5 or more years of credited service shall be determined by multiplying three percent of final monthly compensation by the number of years of credited service to a maximum of 80 percent for the first 40-29.091 years of service. For all subsequent years of service, the normal retirement benefit shall be determined by multiplying two 2.75 percent of final monthly compensation by each year in excess of 4029.091 years of service. A member receiving a service retirement benefit hereunder shall be eligible to participate in the DROP established by section 36-35 subject to the Maximum DROP Entry Deadline thereof. (iii) Delayed retirement. A delayed retirement benefit payable to a member retiring after upeirattaining age 55 with at least ten but less than 22.5 years of credited service shall be determined by adding 0.01%to the 2.75% benefit rate set forth in(i) above for each of the first 23 months of service after attaining the normal retirement date of age 55 and 10 years of service and adding 0.02% for the 24th month of service after attaining the normal retirement date of age 55 and 10 years of service until a maximum of three percent is reached and then multiplying the total benefit rate by final monthly compensation and by the number of years of credited service to a maximum of 80 percent for the first 4029.091 years of service. For all subsequent years of service, the delayed retirement benefit shall be determined by multiplying twe-2.75 percent of final monthly compensation by each year in excess of 4029.091 years of service. A member receiving a delayed retirement benefit hereunder shall be eligible to participate in the DROP established by section 36-35 subject to the Maximum DROP Entry Deadline thereof. (iv) Examples: 1. Age 55 with 10 or more years of credited service. A member retiring at age 55 with 10 or more years of credited service but less than 22.5 years of credited service would have reached the normal retirement date based on age and service at age 55, so the member's total benefit rate would be 2.75%. 2. 56 with 10 years. A member retiring at age 56 with 10 years of credited service would have reached the normal retirement date based on age and service at age 56, so the member's total benefit rate would be 2.75%. 3. 56 with 11 years. A member retiring at age 56 with 11 years of credited service would have reached the normal retirement date based on age and service at age 55., so the member's total delayed retirement benefit rate would be 2.75 +.12% [12 months x 0.01%] or 2.87%. 4. 56 with 12 or more years. A member retiring at age 56 with 12 or more years of credited service but less than 22.5 years of credited service would have reached the normal retirement date based on age and service at age 55, so the member's total delayed retirement benefit rate would be 2.75 +.12% [12 months x 0.01%] or 2.87%. 5. 57 with 10 years. A member retiring at age 57 with 10 years of credited service would have reached the normal retirement date based on age and service at age 57., so the member's total benefit rate would be 2.75%. 6. 57 with 11 years. A member retiring at age 57 with 11 years of credited service would have reached the normal retirement date based on age and service at age 56 when the member had attained 10 years of service and was at least 55 years old, so the member's total delayed retirement benefit rate would be 2.75% + 0.12% (12 months x 0.01%) or 2.87%. 7. 57 with 12 or more years. A member retiring at age 57 or later with 12 or more years of credited service but less than 22.5 years of credited service would have reached the normal retirement date based on age and service at age 55, so the member's total delayed retirement benefit rate would be 2.75 + 0.25% (23 months x 0.01%+ 1 month x .02%) or 3.0% 8. Any age with 22.5 or more years. A member of any age retiring with 22.5 or more years of credited service would receive the service retirement benefit rate of 3%. 9. 80% cap applies. All of the above examples are subject to the 80% pension maximum for the first 29.091 40 years of service and a benefit rate of 2.75% per year for all years of service over 29.09140. (c) All monthly service retirement benefits shall be payable on the first day of each month. The benefit shall commence on the first day of the month coincident with or next following the member's actual retirement and shall continue until and including the first day of the month of the death of the member. In the event that a member shall retire in the middle of the month, the retirement benefit shall commence on the first day of the following month, but the member shall receive payment_credit for the partial month preceding the actual date that payment commenced. (d) Early retirement shall be available to an active member on the first day of the month coincident with or next following attainment of age 45 and a completion of ten years of credited service. Early retirement benefit recipients are not eligible to participate in the DROP established by section 36-35. (e) A member electing early retirement may choose to receive either a deferred payment or an immediate payment under the following formula: (1) A deferred payment shall commence on the normal retirement or delayed retirement date of the member, as chosen by the member.- - . -- .. - .. - . .. - -- member attains age 57 with ten years of credited service. A deferred payment shall be determined in the same manner as a normal or delayed retirement,except that final monthly compensation and credited service shall be based upon the early retirement date. (2) An immediate retirement benefit may commence on the first day of the month coincident with or next following the date of early retirement and continue to and including the first day of the month of the death of the member. The benefit shall be determined for normal or delayed retirement and then actuarially reduced for the number of actual years and months at which the starting date of the benefit precedes the normal or delayed retirement date, whichever results in the greater benefit payment to the member: The normal retirement and delayed dates shall be as set forth in subsection (b) above. the date - - - . .•- . _ • - - - ., . _ . - . The actuarial reduction factor applied to the benefit shall be three percent for each year by which the starting date of the benefit precedes the normal or delayed retirement date. For example,the early retirement benefit of a member retiring early at age 45 with 20 years of service shall be reduced by 306 percent (age 557—age 45 = 102 years x 3 percent = 306 percent)from the normal retirement date of age 55 with a 2.75%benefit rate or reduced by 36% (age 57-age 45 = 12 years x 3 percent = 36%) from the delayed retirement date with a 3% benefit rate, whichever results in the greater benefit payment to the member. Sec. 36-29. -Vesting and termination. (b) A member who shall leave the service of the City prior to eligibility for normal service retirement or early service retirement and has not received a refund of the member's accumulated contributions, but who has completed ten years of creditabled service shall be entitled to receive retirement benefits commencing at the regular normal service retirement date set forth in section 36-26(b)(i), or early retirement benefits upon or after attaining age 50 calculated according to the early formula set forth in section 36-26(e)(2). Such benefits will be based on final monthly compensation and credited service as of the date of termination. - - _ _ ••- Sec. 36-35. - Deferred retirement option program (DROP). Effective October 1, 2018, a deferred retirement option plan("DROP")will be created. A member will be eligible to enter the DROP on the earlier of the first day that he/she is eligible for nennal service retirement as defined by section 36-26(b)(ii) or delayed retirement as defined in section 36-26(b)(iii)but with at least 11 years of credited service and attainment of age 57. Upon entering the DROP,a member will no longer accrue credited service or additional pension benefits and will no longer make employee contributions to the Retirement Plan. Instead,the amount of the monthly pension benefit for the benefit option selected by the member will be credited to the member's DROP account. The maximum period that a member may participate in the DROP is five years_ After the maximum period of DROP participation, the member must terminate from employment as a City police officer .officer. DROP participation must beginning from by the earlier of the date on which a member reaches 25 years of service or the date on which a member reaches age 57 with 11 years of service ("Maximum DROP Entry Deadlines"). A member may elect to enter DROP after the foregoing dates, but his/her maximum participation in the DROP will be reduced by the period of time in which the member delayed entry in the DROP after reaching either of the foregoing Maximum DROP Entry Deadlines. The member's DROP account will be self-directed by the member to mutual funds selected by the Retirement Plan's Board of Trustees from among those offered by a vendor selected by the Board of Trustees. The available mutual funds and the vendor may be changed from time to time by the Board of Trustees. Members will be solely responsible for the gains and losses of their individual self-directed DROP accounts. Members who elect to participate in the DROP shall be required to separate from City service at the conclusion of the DROP period. A member's DROP shall be distributed to the member in a lump sum, rollover, or a combination of both, as soon as administratively practicable and not more than 90 days following the conclusion of the DROP period or approval of the distribution by the Retirement Plan Board of Trustees, whichever occurs last. Neither the City, the Retirement Plan, nor its Board of Trustees shall have any liability or responsibility to guarantee the principal and/or rate of return for a member's DROP assets. The DROP accounts, although self-directed separate accounts,will remain part of the pension trust, and distributions from a member's account shall not be permitted until termination of employment.