Item Coversheet

Resolutions - R7  C




COMMISSION MEMORANDUM

TO:Honorable Mayor and Members of the City Commission 
FROM:Jimmy L. Morales, City Manager 
DATE:May  1, 2020
 



SUBJECT:

A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE FINANCE AND ECONOMIC RESILIENCY COMMITTEE, AT ITS APRIL 24, 2020 MEETING, AND AUTHORIZING THE CITY TO CONTINUE MEDICAL COVERAGE FOR EMPLOYEES WHO ARE FURLOUGHED DUE TO THE COVID-19 CRISIS THAT DO NOT USE ACCRUED VACATION LEAVE DURING THEIR FURLOUGHED PERIOD, INCLUDING PAID EMPLOYEES' DEPENDENTS IF THE EMPLOYEE WAS INCLUDING EACH DEPENDENT UNDER THE CITY'S MEDICAL COVERAGE PLAN; AND FURTHER AUTHORIZING THE USAGE OF CITY FUNDS TO COVER THE RESPECTIVE MEDICAL COVERAGE PREMIUM PAYMENTS FOR FURLOUGHED EMPLOYEES (AND THEIR DEPENDENTS, AS APPLICABLE ABOVE) UNTIL THE END OF CITY FY 2020, OR UNTIL THE FURLOUGHED EMPLOYEES RETURN TO WORK, WHICHEVER IS EARLIER.


RECOMMENDATION

It is recommended that the Mayor and the City Commission accept the recommendation of the Finance & Economic Resiliency Committee to authorize City funds to cover the medical premiums of furloughed employees and their dependents until the end of FY2020, or until the furloughed employees return to work.

BACKGROUND/HISTORY

The Finance & Economic Resiliency Committee (the “Committee”) met April 17, 2020 to discuss the financial impact of the COVID-19 pandemic. Part of the discussion was Administration’s actions to reduce costs as much as possible to mitigate the projected revenue loss. The Administration submitted a summary of actions taken, which included the furlough of 49 full-time, 208 part-time, and 64 temporary employees. The Committee requested that the Administration further review staffing needs for FY2020, and look for additional furlough opportunities, especially in management positions. At the April 24, 2020 Committee meeting the Administration reported that an additional 20 full-time employees were furloughed.

ANALYSIS

At its April 24, 2020 meeting, the Committee passed a motion that provides continued medical coverage for employees and their dependents while on furlough until the end of FY2020, or until the day that the furloughed employee is returned to work, at no cost to the employee. To date, the City has covered 100% of the medical premiums for extended furloughed employees and their dependents. Effective payroll period beginning April 27th, the City will continue to cover the medical premiums of extended furloughed employees that do not use accrued Vacation Leave during their furloughed period.. For the approximate 49 employees furloughed to date, the conservative estimate for the City to cover the medical premiums is $52,000 until the end of FY2020. All other medical related costs (copays, deductibles, etc.) are the responsibility of the furloughed employee.

This benefit will be extended to current furloughed employees, as well as additional employees that may be furloughed in response to this financial impact due to COVID-19.

CONCLUSION

The Administration concludes that the Mayor and the City Commission approve the recommendation of the Finance & Economic Resiliency Committee to authorize City funds to cover the medical premiums of furloughed employees that do not use accrued Vacation Leave during their furloughed period and their dependents until the end of FY2020, or until the furloughed employees return to work.

Applicable Area

Citywide
Is this a "Residents Right to Know" item, pursuant to City Code Section 2-14? Does this item utilize G.O. Bond Funds?
Yes No 
Legislative Tracking
Human Resources

ATTACHMENTS:
Description
Resolution