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20090302CWa_grayscalem MIAMIBEACH City of Miami Beach 1700 Convention Center Drive Miami Beach Florida 33139 wwwmiamibeachflgov COMMISSION MEMORANDUM TO Mayor Matti Herrera Bower and Members of the City Commission FROM Jorge M Gonzalez City Manager DATE March 2 2009 SUBJECT CITY OF MIAMI BEACH CLASSIFICATION AND COMPENSATION STUDY RESULTS AND ANALYSIS KEY INTENDED OUTCOMES SUPPORTED Attract and Maintain a quality workforce Ensure expenditure trends are sustainable over the long term BACKGROUND Given the current fiscal environment not only in the City of Miami Beach but in the entire country and the world it is important now more than ever that the City take practical and difficult measures to reduce all possible expenditures Since nearly seventy percent 70 of the Citys operating budget is allocated to salaries and benefits containing and reducing personnel expenditures is crucial At the August 30 2007 City Commission Budget workshop and again at the September 5 2007 City Commission meeting while voting to ratify the three 3 year collective bargaining agreement with the Communications Workers of America CWA the City Commission discussed the standard practice of increasing the minimum and maximum of pay ranges when a Cost of Living Adjustment COLA is awarded to City employees It was stated by some members of the City Commission that the practice of shifting the minimum and maximum of pay ranges for each COLA warrants reconsideration and further discussion There was concern from some members of the Commission that the pay ranges and actual salaries were not in line with the private industry and that the pay ranges and actual salaries may also be out-of-linerelativetothe position s respectivelevel of responsibility and accountability As aresult of these discussions the City Commission directed theCity Manager to explore the possibility of hiring a consultant to perform a citywide job classification and compensation study toupdate the City s currentclassification system and establish an appropriate adequate and fair classification and compensation system forall employees The purpose ofajob classification and compensation study isto examine an organization s currentjob classification schedule andappropriately update all job classifications to ensure internal equity and external competitiveness Internal equity refers to the relationships duties level of responsibilities salary tenure etc between positions within the same organization External equity refers to the relationships duties level of responsibilities salary tenure etc between positions tothe external labor market in both the public and private sectors Agenda Item Date 3-a-a j City Commission Memorandum March 2 2009 Classification and Compensation Study Page 2 of 26 Classification and Compensation studies usually consist of an analysis and updating of all job descriptions and duties compliance with Fair Labor Standards Act ELBA regulations and Equal Employment Opportunity EEO classification categories and amarket-rateanalysis of pay The FLSA establishes minimum wage overtime payrecordkeeping and youth employment standards affecting employees in the private sector and in Federal State and local governments The most important FLSA provision for the City is overtime Covered non-exempt employees those employees who are not exempt from overtime and therefore eligible to be paid overtime must receive overtime pay for hours worked over 40 per workweek anyfixed and regularly recurring period of 168 hours -seven consecutive 24-hour periods at a rate not less than one and one-half timesthe regular rate of pay The FLSA does not require overtime pay for work on weekends holidays or regular days of rest unless overtime is worked on such days Many City employees tend tobenon-exempt while mostexecutive management administrative and other professional type positions tend to be exempt not eligible for overtime As part of the classification study process the consultant will conduct salary basis and duties tests that result in the determination of which classifications receive FLSA exempt and non-exempt designations In additionthe consultant will do the same with the Equal Employment Opportunity EEO classification categories which determines how positions are coded to ensure that they meet all federal employment guidelines as they relate to the compliance ofanti-discrimination laws and regulations inthe workplace In regards to the market-rate analysis of pay given thediversityuniqueness and complexity of the duties and responsibilities for positions within the City of Miami Beach the market for any individual position or classification will vary For some positions the market will be exclusively public sector governments For other positions the market will be amix of public sector and private sector The market is defined in a manner that reflects the primary industries where labor talent is found recruited from and or lost to The compensation studyelement of these types of projects isintended to determine if classifications are appropriately compensated onan internally consistent basis and relative to comparable municipalities and private sector agencies on alocal and national scale as well as determine market position through an internal and external equity analysis This includes conducting external reviews of maximums and minimums for positions time between steps total compensation for all classifications and conducting external benchmarking of positions throughout the organization This also includes evaluating the City s current pay practices and makingrecommendations as to potential future changes that would responsibly contain escalating personnel-related costs The last time aclassificationand compensation study was conducted in the City of Miami Beach was in 1995 That study included the job analysis of approximately 280 classifications covering over 900 City employees The study looked at all positions in the City except those covered by the Fraternal Order of Police FOP and the International Association of Fire Fighters IAFF As a result of this study it was recommended that the titles and job duties of370 City positions be changed tomore accurately reflect the duties being performed at the time It was also recommended that 112 employees salaries be raised tomeet the new minimums of the salary ranges established The total cost at the time to implement the recommendations was 318 000 City Commission Memorandum March 2 2009 Classification and Compensation Study Page 3 of 26 On October 17 2007 the City Commission authorized the issuance of a Request for Proposals RFP to solicit proposals for this job classification and compensation study for all classifications inthe City of Miami Beach The purpose of the RFP was to select a qualified consulting firm having expertise and qualifications in the area of personnel systems to review and revise the Citys current classification schedule and compensation system The RFP was issued on October 31 2007 and notices were sent to over fifty 50 firms which resulted in the receipt of eight 8 proposals An evaluation committee was appointed and met twice in February 2008 before making their recommendation to the City Manager On March 12 2008 the City Commission passed a resolution to accept the City Managers recommendation to enter into negotiations with the top ranked firm of Condrey Associates to conduct the Citys classification and compensation study Condrey Associates specializes in local and state government consulting and the president and principal consultant Dr Steve Condrey has consulted nationally and internationally with over 500 organizations concerning personnel-relatedissues including conducting classification and compensation studies The contract with Condrey Associates was negotiated and finalized on April 24 2008 On May 15 2008 Dr Steve Condrey Kathie Brooks City of Miami Beach Office of Budget and Performance Improvement Director and Ramiro Inguanzo City of Miami Beach Human Resources Director met one-on-one withtheMayorand City Commissioners to solicit input in developing and implementing this project Also in May 2008 a steering committee was appointed by the City Manager to help guide the consultant through the process and provide feedback at the end of the process This committee was made upof the following fifteen 15 individuals five 5 residents and or members ofthe business community one 1representative from each of the City s five 5unionsand five 5 employees representing the City s unclassified employeesCorrine Brody Prewitt Resident and former Special Assistant for Strategic Management and Human Resources Miami Dade County Jack Benveniste Representative from the City s Budget AdvisoryCommittee BAC Margarita Cepeda Executive Director UNIDAD ofMiami Beach Michael Perlmutter Representative from the City s Personnel BoardGilbert Squires Attorney and former Chair of the City s Community RelationsBoard Adonis Garcia President IAFF John Gresham Representative Government Supervisors Association GSA Robert Jenkins President FOP -Replaced effective January 26 2009 by Alejandro Bello President FOP Richard McKinnon President CWA Prince Pearse President AFSCME -Replaced effective November 12008 by Perman Terry President AFSCME Georgina Echert Assistant Director Finance Department City ofMiami Beach Rhonda McPherson Assistant Director Sanitation Division City ofMiami Beach Carlos Noriega Police Chief City ofMiami Beach Anna Parekh Director Office of Real Estate Housing and Community Development City ofMiami Beach Andrew Terpak Director Fleet Management City ofMiami Beach The first meeting ofthe Steering Committee took place onJune 4 2008 and the second and final meeting of the Steering Committee took place onFebruary 25 2009 City Commission Memorandum March 2 2009 Classification and Compensation Study Page 4 of 26 On June 2 2008 a packet of information was sent to all City employees regarding the plans and the process for the classification and compensation study This included a Position Description Questionnaire PDQ that was developed by Condrey Associates for all employees to complete and return to their supervisors and then to the consultant The completion of this PDQ served as the initial opportunity for all employees to describe in their own words their specific duties and responsibilities Condrey Associates along with staff from the Citys Human Resources Department held a number of employee informational sessions throughout the City on June 4th and June 5th to answer any questions andor provide any assistance to any employee who wished to learn more about the classification and compensation study or about the completion of the PDQ These sessions were held at City Hall the 21St Street Community Center the Sanitation Training Room and two 2 sessions each at the Fire Department and the Police Department to accommodate for shift changes Exhibit A is a copy of the memorandums and the PDQ sent to City employees Employees were given approximately two 2 weeks to complete the PDQ return it to their supervisor so that the supervisor could review and ensure the PDQ was completed properly and for the supervisor to then forward it to Condrey Associates so they could begin their job analysis for all positions From July 21 through July 25 2008 consultants from Condrey Associates conducted one- on-oneinterviews with City employees representing every classification in the City Certain classifications such as Police Officer Firefighter Lifeguard Municipal Service Worker Parking Enforcement Specialist Recreation Leader etc have large numbers ofincumbents who occupy these classifications and for these classifications atleast 25 of the full-time positionincumbents were interviewed The purpose of these interviews was to solicit additional and specific information about each classification toinsure that theconsultant had adequate data to generate a complete and valid description for each job classification A total of approximately 500 City employees were interviewed as part of this process Simultaneously with thejob analysis for classifications inthe CityCondrey Associates in conjunction with the University of Florida s SurveyResearch Center conducted a salary survey of selected public and private organizations to specifically use this salary data to benchmark against the City of Miami Beach Most of the local governments included inthe survey are jurisdictions that theCity has used in the past for other benchmarking purposes such as our community satisfaction surveys and environmental scans These jurisdictions are similar and or comparabletoMiami Beach in anumber of ways including in any and or allof the following geographic size population tourism community entertainment community communities within the South Florida region etc In addition to these local governments a number of other local public sector organizations which are also major employers in theSouth Florida area were benchmarked including Jackson Hospital Health Systems and Miami Dade College The private sector organizations used for this survey included several local large employers such as Mt Sinai Hospital Medical Center Ryder and the University of Miami Condrey Associates in conjunction with aprofessor researcher fromtheUniversity of Miami also conducted a best practices benefits surveyto seek data about what other jurisdictions are doing to control personnel benefits relatedcosts An analysis of the salary and benefits data along with the jurisdictions that responded to the salary survey and the benefits survey isincluded in Condrey Associates report tothe City Condrey Associates presented their preliminary findings to the City Administration in early October 2008 just days after the continued challenges and in particular the major downturn City Commission Memorandum March 2 2009 Classification and Compensation Study Page 5 of 26 experienced by the stock market in late September 2008 Given the grim economic news and forecast the announcement of many local and national organizations laying workers off and of others freezing or even reducing salaries andor benefits the Administration asked Condrey Associates to conduct further analysis in order to make a more accurate timely and fair recommendation to the City based on the quickly evolving economic financial and labor issues taking place around the world ANALYSIS The Classification and Compensation Study conducted for the City consists of two 2 parts an analysis of the Citys classification job plan and a corresponding analysis of the Citys compensation salarieswages plan Both analyses were conducted simultaneously Classification Plan Analysis The classification portion of the study is meant to create a modern classification system that reflects the work performed by incumbents in all classifications by accurately describing the work performed by these employees in each classification making distinctions between classifications and clearly stating the knowledge skills abilities educational level and experience necessary to successfully perform the duties of each classification An updated classification system will afford the City the flexibility it needs in effectively attracting managing and retaining the best possible employees now and well into the future This analysis is timely given that the Citys current classification structure has evolved greatly since it was last fully updated with this kind of in-depthanalysis in 1995 Currently there are nearly 400 classifications in the City of Miami Beach for the approximately 2000full-time part-timeand temporaryCity employees As previously referenced in the background section of this memorandum most of the City s classifications havemultiple incumbents Some examples of these include Police Officer currently there are 265 incumbents in this position Fire Fighter I currently there are 117 incumbents in this position Fire Fighter II currently there are 46 incumbents inthis position Code Compliance Officer Icurrently there are 7incumbents in this position Code Compliance Officer IIcurrently there are 23 incumbents in this position Parking Enforcement Specialist currently there are 33 incumbents in this position Lifeguard I currently there are 47 incumbents inthis position Lifeguard II currently there are 18 incumbents in this position Recreation Leader I currently there are 18 full-time incumbents and 66part-time incumbents in this positionsMunicipal Service Worker Icurrently there are 62 incumbents inthis position Municipal Service Worker IIcurrently there are 80 incumbents inthis position Municipal Service Worker III currently there are 54incumbents inthis position Office Associate V currently there are 27incumbents in this position Executive Office Associate I currently there are 8incumbentsinthis position First Assistant City Attorney currently there are 5 incumbents inthis position Other classifications are much more unique innature and may have only one 1incumbent These include positions such as department directors Budget Officer Organizational Development and Training Specialist Public Information Officer Urban Forester and Ice Rink Manager to name just afew of these very specific types of classifications City Commission Memorandum March 2 2009 Classification and Compensation Study Page 6 of 26 The City has two 2 types of employee positions classifications those considered to be classified and those considered to be unclassified Classified positions are covered under the civil service system created by the City of Miami Beach Charter and Related Special Acts For these classified positions candidates took an exam andor had an interview and were appointed in competition with other applicants to become a City employee Most classified positions are covered by a collective bargaining unit union Classified employees are hired either as Temporary Provisional or Probationary employees Temporary and Provisional employees are not covered by a collective bargaining agreement and probationary employees must successfully pass their probationary period before becoming regular employees Unclassified positions are those where employees have been appointed to positions not covered by the civil service system Unclassified employees are generally selected by a review of resumes and applications for employment and through personal interviews Unclassified positions include all employees in the Office of the Mayor and City Commission all employees in the City Managers Office all employees in City Attorneys Office many administrative types of positions such as Executive Office Associate I Office Associate V IV III II and I all departmentdivision directors and assistant directors and any other position which may require any exceptional or very specific qualifications As of the most current pay period there are a total of 1964 full-timepart-time andtemporary employees in the City this number fluctuates each pay period given employee separations terminations retirements new hires etc The following is the breakdown by employee group forthe most current pay period 1560 currentemployees areclassified and 404 employees are unclassified Full-Time Part-Time TemporaryTOTAL FOP361 361 IAFF 191 191 CWA 443 17 30 490 AFSCME 359 73 1 433 GSA 57 1 58 OTHERS 20 7 27 UNCLASSIFIED 389 1 14 404 TOTAL 1 820 98 46 1964 In the employeegroups referenced above the Others represent a few classifications that are considered tobe classified and are covered under the civil service system but whose classifications are not covered or represented by a collective bargaining unit An example of an Others classification is aHuman Resources Technician In conducting the classification analysis for all ofthe classifications in the City Condrey Associates used the data collected from the Position Description Questionnaire PDQ completed by employees in every classification aswell as the information obtained from the one-on-one interviews with employees ineachclassificationBased on this data the consultant then used a modified Factor Evaluation System FES to assign apay grade to each classification the FES is described in greater detail in the consultant s report In summary the FESisa nine 9point factor comparison evaluation system developed by the U S Federal Government to evaluate thejob duties andresponsibilities ofjob classifications in afairand consistent manner Condrey Associates added a tenth factor of Supervisory and Management Responsibility to make the FES applicable to the City of Miami Beach s City Commission Memorandum March 2 2009 Classification and Compensation Study Page 7 of 26 classifications It should be noted that this system is similar to the one currently used by the City to assign pay grades to classifications but is more extensive The following are the ten 10 factors which were used to evaluate each and every job classification in the City Knowledge Required by the Position -includes the nature of knowledge and skills needed for the position and how this knowledge and skills are used Supervisory Controls-includes how work is assigned the employees responsibility for carrying out the work and how the work is reviewed Guidelines-includes the nature of guidelines for performing the work and judgment needed to apply the guidelines Complexity -includes the nature of the assignment difficulty in identifying what needs to be done and difficulty and originality involved in performing the work Scope and Effect -includes the purpose of the work and the impact of the work product or service Personal Contacts-includes the peopleconditions underwhich contacts are made Purpose of Contacts -includes the reasons for personal contacts and the skill needed to accomplish work through person-to-personactivitiesPhysical Demands -includes the nature frequency and intensity of physical activity Work Environment -includes the risks and discomforts imposed by physical surroundings and thesafety precautions necessary to avoid accidents or discomfort Supervisory and Management Responsibility-includes thelevel of supervisory and management responsibility assumed by the position In looking at each of the City s jobclassifications the consultant assigned alevel of points to each of the factors described above Based on the total number of points assigned to each classification that classification was then placed in an appropriate salary grade and if applicable the job title of the position was changed to more accurately reflect an appropriate title for the classification At the time of the analysis 1 895 full-timeand part-timeemployees were analyzedproportionately distributed across all employee groups The difference from the 1 964 above represents vacantpositions at the time as well as positions filled by contract ortemporary employees Where the vacant and temporary contract-filled positions represent uniqueclassificationsCondrey worked with Human Resources to develop the appropriate classification In addition based on this analysis all job descriptions for all classifications were updated to reflect the specific and general duties of each position Condrey Associates will continue working with the City toensure that any clarifications to any classification that may need to be provided because of evolving roles and or responsibilities are addressed priorto thepoint ofany classification plan implementation Human Resources has been working and meeting with each department and division director to review all classifications within their areas and identify any issues associated with any particular classification within each department and or division Ifany employeewants to directly appeal any issues related their classification Condrey Associates has aprocess in place to deal with such requests and those will be handled as part of the classification plan implementation process City Commission Memorandum March 2 2009 Classification and Compensation Study Page 8 of 26 Compensation Plan Analysis The compensation portion of the study is designed to assist the City in creating and supporting ahigh-performanceresponsive and competitive organization whose salary ranges for all classifications remain competitive inthe market In order to attract and maintain the employees with the competencies skills knowledge and dedication to accomplish the City smission ofproviding excellent public service and safety to all who live work and play in our vibrant tropical historic community the City has traditionally been acompetitive employer of choice from both a salary and benefits perspective The City ssalary ranges have typically been in what is considered tobe 115 of the labor market meaning that our salary ranges tend to be greater than approximately 75 of competing organizations This has been the City spractice in order to attract and maintain the best possible candidates and employees and remain competitive inwhat has been considered avery competitive labor market Furthermore the City spolicy has been to hire all new employees at the minimum ofthe salary range At times however the City has had tohire above the minimum ofthe range for certain positions at certain times in order toattract and maintain aquality workforce inthose areas In FY 2007 200899 96of all new employees were hired atthe minimum ofthe salary range In the two 2 previous fiscal years when the labor market was extremely competitive for most positions the City hired over ninety percent 90 of all new employees in both FY 2005 2006and FY 2006 2007atthe minimum ofthe salary range Percentage of Newly Hired Employees Starting at Bottom of Respective Range Each Year forthe Past 3Years 105 00w 100 00-- --- -- ---- -95 00 -------------- 90 00 ----85 00-----------------80 00 FY 2005 2006 FY 2006 2007 FY 2007 2008 For most positions wherethe candidate was hired above the minimum ofthe salary range during the time period referenced above the City Commission had amended the City s Salary Ordinance toallow the City Manager to approve aMarket Rate Analysis MRA ofup to twenty percent 20 above the maximum of the pay range for difficult torecruit positions and those which require special skills certification or that by virtue of market conditions such as engineers information technology positions and those relatedto the construction industry The salary ordinance also allows the City Attorney to conduct an MRA analysis for attorney positions in the City Attorney s Office and also provide an adjustment ofup to twenty percent 20 above the maximum of the pay range for those attorney positions Inrecent months however given the economic downturn and the impact it has had on the labor market the numberof applicants has significantly increased and the quality of the candidates has improved Recruitments in the lastthree 3years have yielded approximately forty-eight48applicationsperrecruitmentIncontrastinthelastsix6monthsalonetheaveragenumberofapplicantsperrecruitmenthasyieldedfifty-eight58 City Commission Memorandum March 2 2009 Classification and Compensation Study Page 9 of 26 applicants As an example the most recent recruitment by the City for Capital Improvement Projects Director has yielded over 170 applicants to date The chart below summarizes these recruitment statistics Recruitment Statistics 200 150 I 100 50 Avg of Applicants per Avg of Applicants per of Applicants CIP Director Recruitment Past 3 Years Recruitment Past 6 Position Recruitment Months Underway The City currently has salary ranges for each of the employee groups that exist In essence the following are the six 6 sets of salary ranges one 1 set of salary ranges for those classifications covered by the FOP one 1 set of salary ranges for those classifications covered by the IAFF one 1 set of salary ranges for those classifications covered by the CWA one 1 set of salary ranges for those classifications covered by AFSCME one 1 set of salary ranges for those classifications covered by GSA and one 1 set of salary ranges for those classifications that are considered Others and Unclassified These six 6 sets of salary ranges were necessary given that prior to the 2000-2003union contract negotiations different benefits including Cost of Living Adjustments COLA salary ranges and step meritincreases may have been afforded toeach of the unions thus creating different salary scales for each employee group This coupled with the fact that the last classification and compensation plan implemented for the City back in 1995 covered all positions except those represented by the FOP and the IAFF and this also led to the establishment and necessity for each of these sets of salary ranges In developing arecommended competitive pay system for the City Condrey Associates used the information gathered for the updates made tothe City sclassification plan and conducted anextensive salary survey ofcomparable public and private sector organizations to ensure that the salary ranges for the City were externally equitable and competitive Based on this analysis one 1 pay plan for all employee groups consisting of thirty 30 grades is being proposed by the consultant as shown in the following chart Number of Employees By Recommended Grade 700 600 500 - ------ - 400 - --300-200 -----100------------Grade4-10Grade11-14Grade15-20Grade21-23Grade24-29 City Commission Memorandum March 2 2009 Classification and Compensation Study Page 10 of 26 According to the analysis conducted by the consultant overall the overwhelming majority of the salary ranges for classifications in the City are in line with the labor market from a competitiveness perspective At 100 of the labor market meaning that approximately 50 of competing organizations are below the City and 50 are above the City in what they pay the minimum of the salary ranges for the Citys classifications are at an appropriate level There are a few exceptions particularly in some labortrade positions and entry level administrative positions where the minimum of the salary ranges appear to require an adjustment Some of these include Municipal Service Worker I II and III Recreation Leader I Sewer Pipe Fitter Street Light Technician I and II Water Meter Technician I Field Inspector I and Office Associate III In making a recommendation to the City on a compensation plan and corresponding salary ranges for each classification Condrey Associates is proposing the following three 3 compensation plans each with a different salary scale for the City to determine which plan might be best to implement Compensation Plan A -reflects salaries at 115 of the market At this level the entry-levelrate for positions inthe City would be greater than approximately 75 of competing organizations Placing the salary scale at 115 of the labor market means that aposition in the market with an average entry-level salaryof 40 000 wouldtranslate to astarting salary in the City of Miami Beach of 46 000 CompensationPlan 8-reflects salaries at107 5 ofthe market At this level the entry-level rate forpositions in the City would be greater than approximately 62 of competing organizations Placing the salary scale at 107 5of thelabor market means that a position in the market with an average entry-level salary of40000 would translate toa starting salary in the City of Miami Beach of 43 000 Compensation Plan C-reflects salaries at 100 ofthe market At this level the entry-level rate for positions intheCity would be greater than approximately 49 of competing organizations Placing the salary scale at 100 of the labor market means that a position in the market with an average entry-level salary of 40 000 remainsat approximately 40 000in the City of MiamiBeach As proposed by the consultant the salary range for each grade in each of the three 3 pay plans referenced above is fifty percent 50 from the minimum to the maximum of the pay range for non-management level positions and sixty-five percent 65for management-level positions TheCity s current salary ranges for each grade variesdepending on the actual classification and can range anywhere from ten percent 10from the minimum to the maximum of the pay range mostly for promotional positions in Police and Fire up to 61 5 from the minimum to the maximum ofthe pay range this 61 5 includes some classified and unclassified positions Theproposed salary ranges for all grades in all three 3 of the consultant s pay plans continue to be deliberately broadas is currently the practice in place in the City for all classifications so that issues associated with employees reaching the maximum of the payrange are minimized The range is greater for the management-level positions since these positions tend to be morecompetitive to recruit for and often times national recruitment strategies are used for these types of positions This pay banding strategy ensures competitiveness in the labor market City Commission Memorandum March 2 2009 Classification and Compensation Study Page 11 of 26 In determining which of the three 3 plans to implement Condrey Associates recommends that the City consider all three 3 plans Implementing Plan A would allow the City to retain its current position in the labor market and its reputation as an employer of choice In ordinary circumstances the consultant recommends that Plan A would be a logical choice for the City to adopt however given current economic conditions Plans B and C should be given further consideration The main disadvantage of implementing Plan B or Plan C is that it would put the City in a less advantageous position in its recruitment efforts and even though this may not bean issue right now the labor market will rebound and then the City could potentially be at a disadvantage Additionally the relatively large number of maxed out positions salaries exceeding the top of their respective salary ranges particularly with Plan C may create employee morale and retention problems for the City And again this may not be an issue right now given the current economic and labor situation but should that change then some of the issues described above might arise Below is a further analysis of each of the three 3 plans However the cost impacts for each plan described below include several assumptions Among the assumptions are that all employees receive the full COLA merit andor step increases projected through September 30 2009 that these plans are implemented to become effective October 1 2009 that no employees change positions between now and September 30 2009 and that no other changes occur between now and the point of implementation It also does not take into account any impact salary changes would have on the Citys pension contributions benefit costs or overtime incentive or allowance pays that are based on a percentage of salary Compensation Plan A Employees Who Are Below the Minimum of Plan A Recommended Salary Grades - In Compensation Plan A354 employees who comprise 19 of the1 895 positions analyzed are currently compensated below the 115 of the labor market point for their respective positions If this plan is implemented these 354 employees would receive a salary adjustment to bring them to the minimum of thenew salary range the fiscal impact of which is approximately1172 182 which is approximately 1 of the September 2009 projected payroll Of the 354 employees currently compensated below the minimum recommended by theconsultant for their respective salary grades approximately 91 322 employees were hired after 2001 Itshould be noted however itappears that even if an employee remains below the recommended minimum oftheir proposed grade because of theCity scurrent practices regarding annualmerit step and COLA adjustments within afew years the employee would move above therecommended salary grade minimum In addition of the 354 employees currently compensated below theminimum recommended by theconsultant for their respective salary grades under Plan Aapproximately 62 218 employees are in the recommended salary grades 4 through 10 and 31 109 employees are in therecommended salary grades 11 through 14 acombined total of more than 90 of the employees currently compensated below the minimum These represent 43 of theemployees that fall inrecommended salary grades 4 through 10 and 20 of the employees that fall in salary grades 11 through 14 These are the lower half of the recommended pay grades by theconsultant for existing City positions Under Plan A salary grade 4 ranges from28486 02 to43344 85 annual salary salary grade 10 ranges from38310 53 to58294 00 annual salary and salary grade 14 ranges from46677 66 to71025 58annualsalary City Commission Memorandum March 2 2009 Classification and Compensation Study Page 12 of 26 Salary Scale A Employees Under Min by Grade 250 200 150 100 50 0 Further of these 354 employees 76 268 employees are AFSCME members representing approximately 64 of the 418 AFSCME members that were analyzed as part of this study CWA is the second most significant salary group impacted representing 11 38 employees of the 354 employees under the salary grade minimum for Plan A and 8 of the 460 CWA employees analyzed The other significant employee group identified under the salary grade minimum for Plan A are those employees classified as Others and Unclassified in civilian positions these exclude all Unclassified employees who are in public safety legal and management positions Of the 354 employees currently compensated below the minimum recommended by the consultant for their respective salary grades in Plan A approximately 105 37 employees are in these Others and Unclassified civilian positions representing 13 of the 286 employees in these Others and Unclassified civilian positions Salary Scale A Employees Under Min by Salary Group 300 250 200 150 100 50 0 In terms of departments impacted Parks and Recreation and Public Works represent the greatest percentage of the 354 employees currently compensated below the minimum recommended by the consultant for their respective salary grades with 153 employees in Parks and Recreation 43 of the 354 and 129 employees in Public Works 37 of the 354 impacted respectively This represents approximately 60 of the employees in Parks and Recreation and approximately 40 of the employees in Public Works Grade 4-10Grade 11-14 Grade15-20 Grade 21-23Grade 24-29 SGAP GAP COQP G pS GP o G PC G P Q 5J GJaG J G0 City Commission Memorandum March 2 2009 Classification and Compensation Study Page 13 of 26 Salary Scale A Employees Under Min by Department so Aso Sao 20 100 80 60 40 20 0 SOJP -G QtSGGOPOQPG cGSOQ QGJJQvGO GO o G oGJe-zo S yoe-eP pPeQeS G 0Po tsO Q 1P Q GQQ-FQ-G GQS QEmployees Who Are Above theMaximum of Plan ARecommended Salary Grades -For Compensation Plan A 283 out of1 895 employees approximately 15 are projected toexceed the maximum of their pay range by atotal amount of approximately1365 685 This means that thecurrent base salary not including any overtime incentive or allowance pays for these employees exceeds the recommended pay range maximum by this amount These employees are considered fully compensated by the consultant Condrey Associates recommends that these fully compensated employees remain at their current salary level until such time as the maximum range for their assigned salary grade meets or exceeds their current salary Incontrast to the employees compensated below the minimum recommended by theconsultant for their respective salary grades in Plan A almost 90 of the employees who are above their recommended salary grade under Plan A 249 of the 283 employees were hired in 2000 or earlier and the number ofemployees above themaximum of their salary grade under Plan A as apercent of employees hired within aparticular year increases with length of employment 18 of the current 373 employees hired between 1996 and 2000 are over the maximum of their salary grade and 37 of the current 82 employees hired between 1981 and 1985 are over the maximum of their salary grade Salary Scale A Employees Analyzed and Employees Under Min and Over Max by Year of Hire soo soo aoo 300 200 100 0O0 RO0 tiO1 ti OO6 OOy OHOrjo y yOPtioL6L96 6Employees Analyzed pEmployees Under Nlin EmployeesOverMax City Commission Memorandum March 2 2009 Classification and Compensation Study Page 14 of 26 In addition of the 283 employees currently compensated above the maximum recommended by the consultant for their respective salary grades under Plan A approximately 35 99 employees are in the recommended salary grades 11 through 14 43 121 employees are in the recommended salary grades 15 through 20 and 11 32 employees are in the recommended salary grades 21 through 23 a combined total of almost 90 of the 283 employees considered above the maximum of their salary grade for Plan A These represent 18 of the employees that fall in recommended salary grades 11 through 14 20 of the employees that fall in salary grades 15 through 20 and 20 of the employees that fall in salary grades 21 through 23 Under Plan A salary grade 14 ranges from 4667766 to 7102558 annual salary salary grade 20 ranges from 6277626 to 9552151 annual salary and salary grade 23 ranges from 8442709 to 12846581 annual salary Salary Scale A Employees Over Max by Grade 140 120 100 80 60 40 20 0 Of the 283 employees over the maximum of their salary grade in Plan A 435123 employees are IAFF members representing approximately 64 of the 191 IAFF members that were analyzed as part of this study CWA and Others and Unclassified in civilian positions these exclude all Unclassified employees who are in public safety legal and management positions are the next most impacted representing 22 and 23 of the 283 fully compensated employees respectively However as a percent of members in individual salary groups 26 5 employees of Unclassified in legal positions are impacted 23 65 employees of Others and Unclassified in civilian positions are impacted18 8 employees of Unclassified in public safety positions are impacted and 17 11 employees of Unclassified in management positions are impacted Salary Scale A Employees Over Max by Salary Group iao I zo - - 80 ---------60 --------------- ao --20-i 0 --I--G5GAPGoP doe PQG P GG1 P 5Q QJ0 VS95 SyFAGGSJ5JAG0JGrade4-10Grade11-14Grade15-20Grade21-23Grade24-29 City Commission Memorandum March 2 2009 Classification and Compensation Study Page 15 of 26 Given the IAFF impacts described above the Fire Department represents the greatest percentage of the 283 employees above the maximum of their salary grade under Plan A which represents more than half of all Fire Department employees Other departments significantly impacted include the Information Technology Department and the Office of Budget and Performance Improvement OBPI where just over 40 of each are above the maximum of their recommended salary grade under Plan A In the Fire Department all employees over the maximum of the range in Plan A were hired in 2002 or prior in OBPI they were hired in 1994 or prior whereas employees in the Information Technology Department who are above the maximum of their range under Plan A follow no discernable pattern by hire year Salary Scale A Employees Over Max by Department 160 140 120 100 80 60 40 20 0 Compensation Plan B Employees Who Are Below the Minimum of Plan B Recommended Salary Grades - In Compensation Plan B 255 employees who comprise13 5 of the1 895 positions analyzed are currently compensated below the107 5 of the labor market point for their respective positions Ifthis plan is implemented these 255 employees would receive a pay adjustment to bring them to the minimum of the new salary range the impact of which is approximately511 460 which is approximately0 44 of the September 2009 projected payroll Of the 255 employees currently compensated below the minimum recommended by theconsultant for their respective salary grades approximately 96 246 employees were hired after 2001 Again as with Plan A it appears that even if an employee remains below the recommended minimum of their proposed grade because of theCity scurrent practices regarding annualmerit step and COLA adjustments within afew years theemployee would move above the recommended salary grade minimum In addition of the 255 employees currently compensated below the minimum recommended by theconsultant for their respective salary grades under Plan B approximately 68 174 employees are in therecommended salary grades 4 through 10 and25 5 65 employees are in the recommended salary grades 11 through 14 acombined total of more than 90 of the employees currently compensated below the minimum These represent 34 of the employees that fall in recommended salary grades 4 through 10 and 12 of the employees that fall in salary grades 11 through 14 These are the lower half of therecommended pay grades by theconsultant for existing City positions Under Plan B salary grade 4 ranges from26628 24 to40518 01 annual salary salary grade 10 ranges from35812 02 to a 4 e Pe k d s hi tS v Ci jlo O O 0 Q G i QE-E7 Fa 9 C 4QQ g Z F L l QF3 y7 7 Q 4 y F Q Q4Q City Commission Memorandum March 2 2009 Classification and Compensation Study Page 16 of 26 5449222 annual salary and salary grade 14 ranges from 4363346 to 6639348 annual salary Salary Scale B Employees Under Min by Grade 200 180 160 140 120 100 80 60 40 20 Further of these 255 employees 84 215 employees are AFSCME members representing approximately 51 of the 418 AFSCME employees that were analyzed as part of this study The Others and Unclassified civilian employees again this excludes all Unclassified employees in public safety legal and management positions is the second most significant employee group impacted representing 8 20 employees of the 255 employees under the salary grade minimum for Plan B and 7 of the 286 Others and Unclassified employees analyzed CWA is the third most significant employee group impacted representing 5 14 employees of the 255 employees under the salary grade minimum for Plan B and 3 of the 460 CWA employees analyzed Salary Scale B Employees Under Min by Salary Group 250 200 150 100 50 0 G GAP GrP COQ PF SQ GP G P G O G 55 P0 lG o In terms of departments impacted Parks and Recreation and Public Works again represent the greatest percentage of the 255 employees currently compensated below the minimum recommended by the consultant for their respective salary grades with 121 employees in Parks and Recreation 475 of the 255 and 107 employees in Public Works 42 of the 255 This represents approximately 42 of the employees in Parks and Recreation and approximately 33 of the employees in Public Works City Commission Memorandum March 2 2009 Classification and Compensation Study Page 17 of 26 Salary Scale B Employees Under Min by Department 140 120 100 80 60 40 20 0 ititip S fa ge y L P Qe g Fea Employees Who Are Above the Maximum of Plan 8 Recommended Salary Grades -For Compensation Plan B 389 out of 1895 employees approximately 205 are projected to exceed the maximum of their pay range by a total amount of 3141551 This means that the current base salary not including any overtime incentive or allowance pays for these employees exceeds the recommended pay range maximum by this amount These employees are considered fully compensated by the consultant Again the consultant recommends that these fully compensated employees remain at their current salary level until such time as the maximum range for their assigned salary grade meets or exceeds their current salary Consistent with Compensation Plan A and in contrast to the employees compensated below the minimum recommended by the consultant for their respective salary grades in Plan B almost 85 of the employees who are above their recommended salary grade under Plan B 325 of the 389 employees were hired in 2000 or earlier and the number of employees above the maximum of their salary grade under Plan B as a percent of employees hired within a particular year increases with length of employment 27 of the 373 current employees hired between 1996 and 2000 are over the maximum of their salary grade and 44 of the 82 employees hired between 1981 and 1985 are over the maximum of their salary grade Salary Scale B Employees Analyzed and Employees Under Min and Over Max by Year of Hire 600 500 400 300 200 100 Employees Malyzed p Employees Under Min Employees Over Max 9 6 6 p 00h66 00 00 00 00 oo P9969900 ry0 Tp City Commission Memorandum March 2 2009 Classification and Compensation Study Page 18 of 26 In addition of the 389 employees currently compensated above the maximum recommended by the consultant for their respective salary grades under Plan B approximately 32 125 employees are in the recommended salary grades 11 through 14 and 38 1491 employees are in the recommended salary grades 15 through 20 a combined total of just over 70 of the 389 employees considered above the maximum of their salary grade for Plan B These represent 23 of the employees that fall in recommended salary grades 11 through 14 and 24 of the employees that fall in salary grades 15 through 20 Under Plan B salary grade 14 ranges from 4366346 to 6639348 annual salary salary grade 20 ranges from 5868216 to 8929185 annual salary and salary grade 23 ranges from 7892098 to 12008760 annual salary Salary Scale B Employees Over Max by Grade 160 140 120 100 80 60 40 20 Of the 389 employees over the maximum of their salary grade in Plan B 33 130 employees are IAFF members representing approximately 68 of the 191 IAFF members that were analyzed as part of this study CWA and Others and Unclassified in civilian positions these exclude all Unclassified employees who are in public safety legal and management positions are the next most impacted representing 27 106 employees and 23 90 employees of the 389 fully compensation employees respectively However as a percent of members in individual salary groups 47 9 employees of Unclassified in legal positions are impacted 315 90 employees of Others and Unclassified in civilian positions are impacted36 16 employees of Unclassified in public safety positions are impacted and 215 14 employees of Unclassified in management positions are impacted Salary Scale B Employees Over Max by Salary Group Grade 4-10Grade 11-14 Grade15-20 Grade 21-23Grade 24-29 City Commission Memorandum March 2 2009 Classification and Compensation Study Page 19 of 26 Consistent with Plan A and given the IAFF impacts described above the Fire Department represents the greatest percentage of the 389 employees above the maximum of their salary grade under Plan B which represents more than 60 of all Fire Department employees Other departments significantly impacted include the Information Technology Department the Office of Budget and Performance Improvement OBPI the City Managers Office and the City Attorneys Office where at least 40 of the employees in each are above the maximum of their recommended salary grade under Plan B Salary Scale B Employees Over Max by Department 200 iso iso iao izo ioo so so ao zo 0 qty a t C L Compensation Plan C t Q 1 ct 4 Q4tSC Q Employees Who Are Below the Minimum of Plan C Recommended Salary Grades - In Compensation Plan C 128 employees who comprise 7 of the1 895 positions analyzed are currently compensated below the 100 of labor market point for their respective positions Ifthis plan is implemented these 128 employees would receive a pay adjustment to bring them to the minimum of thenew salary range the impact ofwhich is approximately117 992 which is approximately010 of the September 2009 projected payroll Of the 128 employees currently compensated below the minimum recommended by the consultant for their respective salary grades 100 all 128 employees were hired after 2001 As with Plans A and B itappears that even if an employee remains below the recommended minimum of their proposed grade because of theCity s current practices regarding annualmerit step and COLA adjustments within afew years the employee would move above the recommended salary grade minimum In addition of the 128 employees currently compensated below the minimum recommended by theconsultant for their respective salary grades under Plan C approximately 81 104 employees are in therecommended salary grades 4 through 10 and while only 13 17 employees are in the recommended salary grades 11 through 14 acombined total of more than 90 of the employees currently compensated below the minimum These represent 21 of the employees that fall in recommended salary grades 4 through 10 but only 3 of the employees that fall in salary grades 11 through 14 These are the lower half of the recommended pay grades by theconsultant for existing City positions Under Plan C salary grade 4ranges from24770 45 to3769117 annual salary salary grade 10ranges from33313 50 to50690 43 annual salary and salary grade 14 ranges from40589 27 to61761 36annualsalary City Commission Memorandum March 2 2009 Classification and Compensation Study Page 20 of 26 Salary Scale C Employees Under Min by Grade 120 100 80 60 40 20 0 Further of these 128 employees 89 114 employees are AFSCME members representing approximately 27 of the 418 AFSCME employees that were analyzed as part of this study The Others and Unclassified civilian employees again this excludes all Unclassified employees in public safety legal and management positions is the only other employee group that is significantly impacted representing 9 11 employees of the 128 employees under the salary grade minimum for Plan C and 4 of the 286 Others and Unclassified employees analyzed Salary Scale C Employees Under Min by Salary Group In terms of departments impacted Parks and Recreation and Public Works again as in Plans A and B represent the greatest percentage of the 128 employees currently compensated below the minimum recommended by the consultant fortheir respective salary grades with 71 employees in Parks and Recreation 555 of the 128 employees and 49 employees in Public Works 38 of the 128 Grade 4-10Grade 11-14 Grade15-20 Grade 21-23Grade 24-29 City Commission Memorandum March 2 2009 Classification and Compensation Study Page 21 of 26 Salary Scale C Employees Under Min by Department 80 70 60 50 40 30 20 10 0 OG JPGGHQ SGGOQi 0Q-QPGytp9Q-pyoQO4iJJSJGG5Q-F P QJyOPGyGyGCJGJjpOGJ QP GOQQQOQ-WQ 0 GG GGQ P 1Q QQ Employees Who Are Above the Maximum ofPlan C Recommended Salary Grades -For Compensation Plan C 763 out of 1 895employees approximately 40 are projected to exceed the maximum oftheir pay range by a total amount of6 417916This means that the current base salary not including any overtime incentive or allowance pays for these employees exceeds the recommended pay range maximum by this amount These employees are considered fully compensated by the consultant Again as with Plans Aand B the consultant recommends that these fully compensated employees remain attheir current salary level until such time as the maximum range for their assigned salary grade meets or exceeds their current salary Consistent with Compensation Plans A and B and in contrast to the employees compensated below the minimum recommended bythe consultant fortheirrespective salary grades in Plan C 77 of the employees who are above their recommended salary grade under Plan C 589 out of 763 employees were hired in 2000 or earlier and the number ofemployees above the maximum oftheir salary grade under Plan C as a percent of employees hired within aparticular year increases with length of employment 56 of the 373 current employees hired between 1996 and 2000 are over the maximum oftheir salary grade and 73 of the 82 employees hired between 1981 and 1985 are over themaximum of their salary grade -- -----Salary Scale C Employees Analyzed and Employees Under Min and Over Max by Year of Hire 600 500400300200100 City Commission Memorandum March 2 2009 Classification and Compensation Study Page 22 of 26 In addition of the 763 employees currently compensated above the maximum recommended by the consultant for their respective salary grades under Plan C approximately 26 198 employees are in the recommended salary grades 11 through 14 and 48 366 employees are in the recommended salary grades 15 through 20 a combined total of 74 of the 763 employees considered above the maximum of their salary grade for Plan C These represent 36 of the 548 employees that fall in recommended salary grades 11 through 14 and 60 of the 613 employees that fall in salary grades 15 through 20 Under Plan C salary grade 14 ranges from 4058927 to 6176136 annual salary and salary grade 20 ranges from 5458806 to 8306217 annual salary Salary Scale C Employees Over Max by Grade 400 350 300 250 200 150 100 50 0 Of the 763 employees over the maximum of their salary grade in Plan C 19 147 employees are IAFF members representing approximately 77 of the 191 IAFF members that were analyzed as part of this study An additional 24 182 employees are FOP members 24 185 employees are CWA and 16 124 employees are Others and Unclassified in civilian positions these exclude all Unclassified employees who are in public safety legal and management positions As a percent of members in individual salary groups all salary groups except AFSCME at 9 38 employees have between 40 and 60 of their members above the maximum of the recommended salary range for Plan C Salary Scale C Employees Over Max by Salary Group 200 180 1so 140 120 100 80 60 40 20 0 Grade 4-10Grade 11-14 Grade15-20 Grade 21-23Grade 24-29 PeP oQ PG r 5G G G F JPGtrOtQ Jam 5 5JGS G oOJAG City Commission Memorandum March 2 2009 Classification and Compensation Study Page 23 of 26 Consistent with Plans A and B and given the IAFF impacts described above the Fire Department represents a significant percentage 28 of the 763 employees above the maximum of their salary grade under Plan C which represents more than 71 of all Fire Department employees Other departments significantly impacted include the Information Technology Department and the Office of Budget and Performance Improvement OBPI where at least 65 of the employees in each department are above the maximum of their salary grade under Plan C Eleven 11 additional departments have at least 40 of their employees above the maximum recommended for their salary range under Plan C Salary Scale C Employees Over Max by Department 300 250 200 150 100 50 t p LQ G q P t4 mot 7 QQik7 ltS 4v t5 tQ10QC-Ag i O AGOQs4QaBcsCQPS0iuvaZQCQv pP Q Q QAQy Q QQvQ0Q7Q Q -Cost Containment Best Practices Recommendations Condrey Associates recommends anumber of personnel cost containment and best practices strategies toconsider along with the classification and compensation plans The most significant of these recommendations include the following 1Cost of Living Adjustments COLA -Periodic market increases similar to theCOLA the City currently awards should be limited to the Consumer Price Index CPI for the Miami -Fort Lauderdale area Such increases should only be implemented when appropriate and deemed desirable by the City 2StepIncreasesMeritIncreases-Automatic step increases should beeliminated for all classifications where steps currently exist In keeping with salary and compensation best practices merit increases in the range of two percent 2 tothree percent 3should beawarded to employees meeting performance standards and whose current salary is below the maximum of the salary range for the position they are in The current classifications in the City which include automatic step increases are the following Lifeguard IIIand Lifeguard Lieutenant Fire Fighter I IIFire Lieutenant and Fire Captain and Police Officer Police Sergeant and Police Lieutenant With regards to merit increases all other employee classifications are on apay-for- performance plan meaning that depending on how they perform during an evaluation year period the employee is eligible for a merit increase of anywhere between zero and four percent 4 City Commission Memorandum March 2 2009 Classification and Compensation Study Page 24 of 26 3 Merit Increase For Employees Who Are Above The Maximum Of The Salary Range -Unlike theCity scurrent practice of not awarding merit increases tothose employees who are maxed out other than COLA the City should consider a policy that once employees reach the maximum of their salary range a merit increase based on performance should be earned as a lump sum paymentone-time bonus rather than being added to the base salary This will help alleviate retention and motivation problems associated with employees who have maxed-outoftheir pay range 4 Overtime -The City should strictly adhere tothe overtime provisions inthe Fair Labor Standards Act ELBA and eliminate policies that provide more than what the law requires In some cases the City provides for double or triple time the salary for overtime worked when FLSA only requires time-and-a-half 5SalarySurvey- To make sure that the City s pay structureremains in acompetitive position the City should conduct a salary survey every four 4tofive 5 years Other Considerations In arecent seminar by the Hay Group regarding Employee Engagement inTough Times the following observations were presented Lessons from the 2001-2002 downturn Obtained fromHay Group and Fortune Magazine s partnership in identifyingAmerica s Most Admired CompaniesoMost Admired Companies pulled through the 2001-2002 downturn by doing thefollowing Enhanced employee motivation and engagement Increased levels ofemployee loyalty and decreased concerns for losing top performers Increased confidence regarding the organization s ability to attract toptalento Almost 2 3 of these companies experiencedand enhanced appreciation for the impact ofemployee s performance into their businessresults Companies recognized that the link between employee performance and strategic intent translates into business results oWhen times are tough strong leadership and employee motivation and engagement are needed oTalented staff has a greater impact than competition Employee enablement In tough times work environments have to turn motivation into productivity Employee enablement has two factors oOptimized role Employee skills match their roles and responsibilities oSupportive environment role clarity resources etc Engagement and enablement are the two essential factors for optimum performance The drivers of engagement clear direction confidence in leaders respect and recognition development opportunities etc and the drivers of enablement structure and process resources authority and empowerment etc are conducive to employee effectiveness City Commission Memorandum March 2 2009 Classification and Compensation Study Page 25 of 26 The Eye of a Turnover Hurricane -Organization may not be experiencing high turnover now but this does not mean that this will not happen once the market strengthens Your Best People Always Have Options -Always remember that top performers work for you because they want to not because they have to Your Employees are Watching -Organizations that put employees first during a downturn will win loyalty for the future Options and Next Steps In determining which if any of the three 3 compensation plans to consider further andor implement there are a number of options within each plan that can also be considered It is important to note however that for any classification covered by a collective bargaining agreement approximately three-fourths75of the City sworkforce the impact to any area dealing with wages salarypensions and orworking conditions need tobe collectively bargained Therefore any changes tocurrent classifications salary grades and impacts to salaries must be negotiated with the unions representing those classifications For classifications not represented by a collective bargaining unit approximately one quarter 25 of the City sworkforce changes tothe areas referenced above can be made without collectively bargaining Some ofthese options include but are not limited toany and orperhaps acombination ofthe following 1 Status Quo -Leaving the current classification and compensation plans as they currently exist 2 Red Circle Those Employees Who Are Fully Compensated -Leaving current employees who are at the maximum oftheir salary range or who are considered fully compensated meaning that their salaries exceed the maximum ofthe proposed range where they are and not processing any salary adjustment merit COLA etc until such time that the maximum ofthe salary ranges catches upto the salary they are currently earning 3 Reducing Salaries -For those employees who are fully compensated reducing their salaries so that they are at the maximum ofthe salary range for the position they currently hold 4 Picking a Percentage to Reduce Salaries -For those employees who are fully compensated identifying an appropriate percentage they are above the maximum ofthe salary range and reducing the salaries ofthose employees For example any employee who is above ten percent 10 of the maximum ofthe salary range is brought down to that ten percent 10 amount This could be done for any percentage that is determined appropriate five percent 5 ten percent 10 fifteen percent 15 twenty percent 20 etc City Commission Memorandum March 2 2009 Classification and Compensation Study Page 26 of 26 5 Salary Freeze For All Employees -This would involve freezing salaries for incumbents in all classifications to the amount they currently earn and not processing any salary adjustments step merit COLA etc until such time that is considered appropriate CONCLUSION As the data referenced above indicates providing a comprehensive update to the Citys classification and compensation plan is a complex issue which involves many stakeholders yet has important impacts on the organization from an employee morale perspective and a fiscal impact perspective As a reminder of the Citys existing labor agreements four agreements will expire September 2009 Fraternal Order of Police International Association of Fire Fighters Communications Workers of America and Government Supervisors Union The agreement with the American Federation of State County and Municipal Employees will expire April 30 2010 The results of the Classification and Compensation study will need to be consistently applied to all bargaining units in the City as well as to the Citys Unclassified and Others employees As previously mentioned although the data and the results from the study are valuable and useful for those positions represented by a union any changes in salary scales including actual salaries or pay practices will need to be negotiated with the respective union In analyzing all the data and the options available the Administration now seeks input from the Mayor and City Commission before proceeding to the next step in the Classification and Compensation study process FcmgrALLRamiroClassificationandCompensation StudyWorkshop Memo with chartsdoc EXHIBIT A m MIAMIBEACH OFFICE OF THE CITY MANAGER MEMORANDUM TO All City Employees FROM Jorge M Gonzalez City Manager DATE May 30 2008 SUBJECT Classification and Compensation Study As you may know the City will be conducting a citywide job classification and compensation study to appropriately update all job classifications Classified and Unclassified and to ensure internal equity and external competitiveness for all positions in the City The study will consist of an analysis of all job descriptions and duties compliance with Fair Labor Standards Act ELBA regulations and EEO Class Codes and amarket-rateanalysis of compensation for each position The goal of this important study is to update the City sclassification and pay system to ensure that all positions are classified accurately reflect accurate duties and responsibilities and that salary ranges are internally equitable and competitive within the marketplace All employees are being asked to participate in the various steps of this study Your input and involvement isvery important and will help ensure the success of the study This project was put out to a competitive bid and Condrey and Associates was the consultant selected Condrey and Associates isa human resources consulting firm with extensive experience in conducting classification and compensation studies for state and local governments throughout the country and around the world I have appointed a steering committee made up of residents representatives from all five unions and unclassified employees The steering committee will help the consultant guide the process as well as provide feedback throughout the various stages of the project The steering committee will hold its first meeting next week The City will be holding a number of employee information sessions on June 4t and 5 hthroughout thevarious City facilities toprovide employees who may be interested in learning more about this project an opportunity to meet and hear from the consultant Details regarding the times and locations for these meetings will be provided to employees by your Department Director by early next week All employees are invited to attend subject to approval from your supervisor As part of this study your supervisors will be distributing individual Position Description Questionnaire PDQ to each employee early next week toensure you have the opportunity to describe your duties and responsibilities inyour own words The completion of the PDQ serves as one of the essential building blocks of this study You will have approximately two weeks to complete the questionnaire and return it to your supervisor The completed questionnaires must be returned tothe respective department heads and then Human Resources no later than June18 2008 In the meantime if you have any questions please feel free to contact Human Resources atextension 7524 1 P CI rCOt qtftGvUifBX iLlfCS@r end cpf riO O vchp LVcvC 1Qu2O7 J brO fC JiStJriCCCrrre i1P EXHIBIT A m MIAMIBEACH Human Resources Department MEMORANDUM TO All City Employees FROM Ramiro Inguanzo Human Resources Director DATE June 2 2008 SUBJECT Position Description Questionnaire The City Manager sent a memo last week to all employees regarding the Classification and Compensation study that is underway for alt positions in the City of Miami Beach As a reminder the goal of this important study is to update the Citys classification and pay system to ensure that all positions are classified accurately reflect accurate duties and responsibilities and that salary ranges are internally equitable and competitive within the marketplace Attached is the Position Description Questionnaire PDQ that the City Manager referenced in his memo As part of the Citys Classification and Compensation study all employees are required to complete this questionnaire and return to your supervisor within two 2 weeks All completed questionnaires must be returned to Human Resources by June 18 2008 This questionnaire was developed by the consultant who is leading the study Condrey Associates Properly completing this questionnaire is your opportunity to describe in your own words your specific duties and responsibilities These completed questionnaires are very important as they serve as one of the building blocks of the classification and compensation study and possibly in the development of a new classification and compensation system for the City of Miami Beach The consultant suggests you first read the questionnaire to allow you to think about the questions and then set aside cone-to-twohourperiod to complete it Once the completed questionnaires have been reviewed by the consultant they will schedule one-on-one interviews withrandomlyselected employees in each classification inorder to get even more information about each position classification and help assurean accurate description of the duties and responsibilities of each position classification These interviews willbe conducted by the consultant and will provide employees with an additional opportunity to explain the scope and complexity of their positions and further define required job knowledge skills and abilities Employees ofthe same current position classification with thesameduties may work together tocomplete a PDQ However if more than one employee participates in completing a PDQ please make sure to write multiple employees at the top ofthe first page and attach alist of all participants include name and signature to the questionnaire Ifyou have any questions about the study or about completing the questionnaire anumber of employee informational sessions have been scheduled fortune 4and June 5The schedule with the date time and location for these informational sessions is printed onthe back of this memo All employees are invited to attend one of these sessions subject to approval from your supervisor Thank you in advance for taking the time to accurately complete the PDQ It is critical to ensuring that our next steps with this study occur timely and effectively vU E C i7o 7780CJViC4BXCUIiBn GJiJ5 i BUQ SIFat Ui ht O E wLCk0 jJCv tB Cn fUEiCC Y ui0Cr1t7IJY Classification and Compensation Employee Informational Sessions Wednesday June 4 2008 1130am-ThirdFloor Commission Chambers City Hall 1700 Convention Center Dr 1 OOpm-EOC at Fire Station 2 2300 Pine Tree Drive 2 15pm-EOC at Fire Station 2 2300 Pine Tree Drive 3 30pm-21St Street Community Center 2100 Washington Avenue Thursday June 5 2008 7 30am-Police Training Room 1100 Washington Avenue 12 OOpm-Sanitation Training Room 2nd Floor 140 McArthur Causeway 3 30pm-Police Training Room 1100 Washington Avenue EXHIBIT A b Job Classification and Compensation Survey Identifying Information NAME OF ORGANIZATION EMPLOYEE NAME as it appears on your paycheck POSITION TITLE DEPARTMENT SUPERVISORSNAME SUPERVISORS TITLE DATE EMPLOYEESLENGTH OF SERVICE IN THIS POSITION Y M EMPLOYEESLENGTH OF SERVICE IN THE ORGANIZATION Y M EMPLOYEES CURRENT GRADE STEP ANNIJAL SALARY POSITION DESCRIPTION QUESTIONNAIRE The purpose of this form is to aid you in describing your present position in terms of the duties responsibilities and qualifications required This form will not be used to evaluate your work performance or your qualifications The job evaluation plan will provide a factual objective basis for uniform and equitable pay relationships It will also provide basic information for the selection and promotion of employees Therefore it is essential that accurate information be obtained about the duties and responsibilities of each position PART I--TOTHE EMPLOYEE You are the best person toprovide the information about your job You know the exact tasks you perform and your responsibilities Therefore you are asked to fill in this position description questionnaire You should answer every question If the space provided for any particular item is not sufficient please attach another sheet Be sure to show the number ofany question answered onthe sheet attached You know the exact duties you perform and the responsibilities of YOUR POSITION DO NOT COPY OTHER EMPLOYEES ANSWERS EVEN IF THEIR JOBS ARE SIlVIILAR TO YOURS WE WANT YOUR OWN STATEMENT OF YOUR RESPONSIBILITIES ANDDUTIES IN YOUR JOB You may ask your immediate supervisor to explain questions you do not understand but use your own words in answering all questions After the questionnaires have been analyzed and preliminary job descriptions developed an interview will be scheduled with you to be certain that the jab description accurately reflects your position 1 MAJOR DUTIES The Major Duties section of the job description answers the question What does the employee do in the position It should briefly describe the major duties performed inplain language Duties are best described by using active verbs for example o Balances cash in register against the total or register tape locating and correcting errors o Types memoranda letters and reports in final form from handwritten notes o Develops plans specifications and estimates for urban expressways with separated intersections dividing strips weaving lanes and ramps If it is necessary todescribe incidental or occasional duties then explain how often they occur for example once amonth in emergencies and so forth Please follow the directions below to describe your major duties a List the major duties that you perform NUMBER EACH DUTY The duty that you consider most important should be listed first followed by lower priority duties until the least important duty is described Describe the duties specifically so that they will be clear to someone who is not familiar with your work Give examples where appropriate b Estimate the percentage of time that you spend on each duty Although this may be difficult you are better able to do it than anyone else c If you perform duties of a supervisory nature describe those duties specifically and in detail Major Duties Order of Importance Work Performed of Time continued on next page Major Duties continued Order of of Importance Work Performed Time 2 Which duty or duties do you think are most responsible list the numbers 3 a Which duty or duties do you think are most difficult list the numbers b What makes these duties difficult 4 KNOWLEDGE REQUIRED BY THE POSITION a List the basic knowledges and skills that are required to perform the duties listed in Item 1 for example knowledge of accounting skill in operating a typewriter accurately skill in operating afront-endloader etc DUTY NUMBER KNOWLEDGES ANDSKILLS b List all of the specialized tools equipment and machines you use while performing your work c What licenses or certificates are required to perform your work d What kind of experience or special training is needed to perform your work 5 SUPERVISORY CONTROLS a List the numbers of the duties from Item 1 that you do repeatedly without receiving new instructions from your supervisor These instructions will be referred to as standing or continuing instructions What is the nature of the standing or continuing instructions you have been given regarding these tasks check one The instructions are detailed speck and cover all aspects of the work The instructions are somewhat general many aspects of the work are covered specifically but I must also use some judgment The instructions are general requiring me to use judgment The instructions are very general requiring me to use much judgment The instructions are in terms of goals and objectives Other describe fully 6 b List the numbers of the duties from Item 1 for which you do not have standing or continuing instructions What is the nature of the standing or continuing instructions you have been given regarding these tasks check one The instructions are detailed specific and cover all aspects of the work The instructions are somewhat general many aspects of the work are covered speccally but I must also use some judgment The instructions are general requiring me to use judgment The instructions are very general requiring me to use much judgment The instructions are in terms of goals and objectives Other describe fully c How does your immediate supervisor review your work check all that apply My supervisor reviews most or all of my work while I am doing it My supervisor spot-checksmywork as Iam doing it My supervisor reviews most or all of my completed work My supervisor spot-checks mycompleted work My supervisor does not review my work Other describe fully d When your supervisor reviews your work what is the purpose of the review check all that apply My compliance with detailed and specific instructions My compliance with established procedures The accuracy of my work The nature and propriety of the fmal results of my work Other describe fully 6GiTIDELINES a What written guidelines or procedures e g lawsbuilding codes rules and regulations do you use in your work b Do the guidelines you use in your work require interpretation or are they clear and specific c Do you ever have to determine which guideline to apply in a specific situation If so when Please give an example 7 COMPLEXITY a Describe what makes your work routine complicated unusual or difficult to perform What obstacles are there in the work itself that make it difficult to accomplish 8 SCOPE AND EFFECT a What is the purpose of your assignment b What is the effect of the work you produce within your department c What impact does your work have beyond your immediate department 8 d How does your work affect outside organizations e What is the effect of errors you may make within your department Within other departments f Does your work affect the reliability accuracy or dependability of other work processes If so how 9 PERSONAL CONTACTS Describe the occupations of people with whom you deal in carrying out your work eg co-workersworkers in related support units recipients of direct services members ofthe general public or representatives of other organizations Do not include contacts with your supervisor since supervisory contacts are described under previous questions 10 PURPOSE OF CONTACTS Describe the purpose of the above contacts for example to give or exchange information to resolve problems to provide services to motivate influence or interrogate persons or to justify defend negotiate or settle matters etc 11 PIiYSICAL DEMANDS Describe the physical demands of your job by checking as many of the following that apply Typically sitting at a desk or table Intermittently sitting standing or stooping Typically standing or walking Typically bending crouching or stooping Occasionally lifting light objects less than 24 pounds Frequently lifting light objects less than 24 pounds Occasionally lifting heavy objects 25 or more pounds Frequently lifting heavy objects 25 or more pounds Climbing ladders Using tools or equipment requiring a high degree of dexterity Distinguishing between shades of color Other describe fully 12 WORK ENVIRONMENT Describe the normal or usual conditions where your work is performed by checking as many of the following that apply Work is performed in an office library or computer room Work is performed in a stockroom or warehouse Work is performed in a very noisy place Work exposes me to much dust dirt grease etc Work exposes me to machinery with moving parts Work exposes me to contagious or infectious diseases or irritating chemicals Work is performed outdoors and occasionally in cold or inclement weather Work requires use of protective devices such as masks goggles gloves etc Other describe fully 13 SUPERVISORY AND MANAGEMENT RESPONSIBILITY List the name and titles of all employees who work under your supervision 10 14 Provide aay additional information about your position that you consider to be important but which has not been previously mentioned PART II--TOTHE IMMEDIATE SUPERVISOR Review this employee squestionnairecarefully to see that it is accurate and complete Then fill out Items 15 through 18 Do not fill in these items unless you supervise the employee directly If you direct this employee through asubordinate supervisor have that supervisor complete Part II Your certification in Item 18 means that you accept responsibility forthe accuracy and completeness with which the entire questionnaire describes the duties and responsibilities of the job If Part I does not express your view of the duties and responsibilities that you have assigned the employee itwill be necessary for you to use Part II to qualify or elaborate onthe description There are two essential cautions you should observe 1 Under no circumstances should you change or alter the employee sentriesin Part I 2 Do not make any statements or comments about the employee sworkperformance competence orqualifications This questionnaire will be used to evaluate the duties that constitute the position not the performance orqualifications of the employee Sign and date the certificate showing that you consider the entire questionnaire to be accurate and complete 15 Describe briefly the employee spositionas you see it Show how it relates to the functions of the department li 16 List the duties assigned to this employee that are most important use the duty numbers from Item 1 17 State any additions or exceptions to the statements made by the employee in Part I 18 I certify that the above information is accurate and complete Signature of Immediate Supervisor Name please print Date Department 19 Comments by department head 20 I certify that the above information is accurate and complete Signature of Department Head Name please print Date Department la EXHIBIT B A JOB CLASSIFICATION AND COMPENSATION PLAN FOR THE CITY OF MIAMI BEACH FLORIDA March 2009 Condrey and Associates Inc PO BOX 7907 Athens Georgia 30604-7907www condrey-consultingcom Table of Contents Introduction 1 The Classification Plan 8 The Compensation Plan 11 Cost ofImplementation 16 Future Pay Practices 20 Appendix A Salary Survey Summary 27 Appendix B PositionGrade Analysis by Grade 29 Appendix C Best Practices and Benefits Survey Summary 39 Appendix D Best Practices and Benefits Survey Instrument 59 Appendix E Position Description Questionnaire 64 Introduction At the request of the City of Miami Beach Condrey and Associates Inc entered into a contract with the City for the development of ajob classification and compensation plan A classification and compensation study is conducted every seven to ten years by most organizations A classification and compensation study balances internal equity the relationship of positions to each other within an organization and external equity the relationship of positions to the external labor market If a study is not conducted for a period of time some positions continue to be paid below their internal and external worth to the organization while some positions exceed it Therefore a classification and compensation study is a necessary step that healthy functioning organizations should undertake every seven to ten years Compensation is more than what a person receives in remuneration from an organization It has as much to do with the effective management of the organization as does a good leader or a modern budgeting structure Compensation helps indicate to organizational members how they are viewed by the organizationither positively or negatively It can also either be a straightjacket for managers or allow them to better manage their workgroup In other words the compensation system comprises a crucial part of the administrative infrastructure of the organization A good compensation system balances internal equity versus external equity A good compensation plan seeks a system that makes sense internally across the organization and is also competitive externally in the relevant comparable labor market Much employee dissatisfaction with pay concerns their personal assessment of how they are paid relative to others within their own organization internal equity If one group of employees perceives another to be paid more highly for a similar level of work resentment can result This resentment can lead to increased turnover lower productivity and general discontent in the workplace along with morale and retention issues across the organization Only by conducting a classification and compensation study can an organization determine if its system is internally valid and externally competitive The objectives of the study included Reviewing and revising the current classification system and pay plan for all City classifications and employees 2 Collecting wage survey data from comparable jurisdictions 3 Producing a recommended pay plan based on job analysis job evaluation and wage survey data 4 Developing new job descriptions for a11388 City classifications 5 Identifying best practices of other public jurisdictions and private entities across the country related to controlling personnel costs 6 Developing practical strategies to control future escalation of personnel costs in the City of Miami Beach and 7 Assessing the impact of proposed changes including the impact on the community employee morale cost impacts and other supporting requirements The process used to collect the necessary data and develop the classification and compensation plan consisted of several steps and phases The first step involved the distribution of a position description questionnaire to all City employees see Appendix E page 64 The questionnaire covered major aspects of the employeesposition as well as the physical demands and work environment of the position A position questionnaire was received for every employee classification After reviewing the information on the position questionnaires Condrey and Associates interviewed employees individually and developed a classification recommendation for each position Approximately 500 position incumbents were personally interviewed for the study representing at least one person in each ofthe Citys 388 classifications Our experience in interviewing the Citys employees was a positive one Employees responded to the position questionnaires properly and the interviews with employees were very well received The City should take pride in its competent and professional workforce The next step in the work plan involved evaluating each classification for grade assignment In order to provide a reliable set ofratings all positions were rated by Condrey and Associates utilizing the Factor Evaluation System FES An explanation of FES can be found on page 8 of this report Additionally exempt and non-exemptovertime eligible classification designations were analyzed as mandated by the Fair Labor Standards Act FLSA and Equal Employment Opportunity EEO class codes were analyzed for each position The project also involved collecting salary survey information Condrey and Associates inassociation with the University of Florida sFlorida Survey Research Center conducted a salary survey ofselected public and private organizations specifically forthis study Most of the local governments included in the survey are jurisdictions that the City of Miami Beach has used in the past for other benchmarking purposes such as their community satisfaction surveys and environmental scans These jurisdictions aresimilar and orcomparable to Miami Beach in a number ofways including in any and orall of the following geographic size population tourism community entertainment community communities within the South Florida region etc In addition tothese local governments a number ofother local public organizations that also are major employers in the area were benchmarked including Jackson Memorial Hospital and Miami Dade College The private sector organizations used for this survey included several local large employers such as Mt Sinai Hospital Ryder and the University of Miami The survey respondents are listed in Table I Summary results of the survey are presented inAppendix AAppendix A shows the mean and median for the minimum maximum and actual average salary rates of the survey respondents The mean isthe arithmetic average ofthe data The median is the midpoint of the data For example one half of the respondents reported salaries above this number one half reported salaries below it In order to make the salary survey data comparable to the City of Miami Beach all survey data was normed Norming is a methodology that allows one to make an apples to apples comparison of salary information from sources in different geographic regions Essentially we utilized the City of Miami Beach cost-of-livingdata115 9 ofthenational average as a constant in converting salaries from other cites into Miami Beach dollars For example using Miami Beach as apoint of comparison converts a 70 000 salaryreported by the City of Atlanta 96 1 ofthe national cost-of-living index to84420 in the Cityof Miami Beach 115 9 96 1 1206 1206 x70 00084 420 Converselya 70000 salary reported bythe City of San Francisco would only translate to47 460 in the Cityof Miami Beach since its cost-of-living is170 9 ofthenational average Analysisofthe salary data shows a very reliable sample with average normed and unnormed data producing very similar results Furthermore including orexcluding private sector data produced no significant difference in results For example the summary of the salary survey results presented on page 28 reports that the minimum annual rate median for the position of Senior Systems Analyst is 57 635 for all survey respondents Whenthe respondent data is divided into public and private sector categories the public sector median is 58 558 the private sector median is57 031 The large response rate approximately70 coupled with the attention given survey data compilation by the University of Florida has produced a very reliable resource for the City of Miami Beach A survey of benefits and best practices exemplary behaviors ofcomparable organizations was also conducted along with a review of published information for total compensation cost 4 containment including approaches for cost of living adjustments pension increases changes to benefits etc The results of the best practice and benefits survey are fully presented in Appendix C Table I Salary Survey Respondents Arizona City of Scottsdale California City of Beverly Hills City of San Francisco City of Santa Barbara City of Santa Monica City of West Hollywood Florida City of Clearwater City of Coral Gables City of Daytona Beach City of Ft Lauderdale City of Hialeah City of Key West City of Miami Miami-DadeCounty City of Pensacola City of St Petersburg Jackson Memorial Hospital Miami-Dade CollegeMount Sinai Hospital Ryder University of Miami Georgia City of Savannah Hawaii City of Honolulu 6 Maryland City of Annapolis North Carolina City of Charlotte South Carolina Town of Hilton Head Island Texas City of Galveston Virginia City of Virginia Beach Washington DC City of Washington DC The Classification Plan The system used to classify the jobs in the City of Miami Beach is an adapted version of the Factor Evaluation System FES FES was developed by the US Civil Service Commission now the Office of Personnel Management and is considered to be astate-of--the-artsysteminpublic human resource management FES isapoint-factor-comparison evaluation system thatusesninefactors for the evaluation of jobs 1 Knowledge Required bythe Position 2 Supervisory Controls 3 Guidelines 4 Complexity 5Scope and Effect 6 Personal Contacts 7 Purpose of Contacts 8 Physical Demands and 9 Work Environment In order to adapt it to this setting a tenth factor covering supervisory responsibility was utilized as described by Henderson and Clarkel The factors are weighted i e Knowledge Required by thePosition counts more than Physical Demands Each factor has several levels and each level isassigned a specified number of points The combined score on all the factors determines the total number of points for each position and its assignment to a grade in the classification plan Table II displays the FES factors Table III presents an example of how the factor scores are tallied see Tables IIand III Appendix B depicts the grade level assigned all City positions The assigned grade levels reflect a combination of data generated by FES the salary surveys and a review of organizational relationships within the City Based on hierarchical alignment the point factor system we utilized appears to produce results similar tothe system previously employed by the City of Miami Beach An exception isthat labor and trade positions are now rated slightly higher inrelative comparison to their internal counterparts It is our opinion that the new internal value system is not aradical departure from the one previously utilized but rather an enhancement of such I Henderson Richard I and Kitty W Clark Job Pay for Job Worth Designing Managing and Involving Employees in anEquitable Job Classification System University Press June 1994 Table II Factor Evaluation System Description of Factors Factor 1 Knowledge Required by the Position o Kind or nature of knowledge and skills needed and o How these knowledges and skills are used Factor 2 Supervisory Controls o How the work is assigned o The employeesresponsibility for carrying out the work and o How the work is reviewed Factor 3 Guidelines o The nature of guidelines for performing the work and o Judgment needed to apply the guidelines or develop new guides Factor 4 Complexity o Nature of the assignment o Difficulty in identifying what needs to be done and o Difficulty and originality involved in performing the work Factor 5 Scope and Effect o Purpose ofthe work and o Impact of the work product or service Factor 6 Personal Contacts o People and conditions under which the contacts are made except supervisor Factor 7 Purpose of Contacts o Reasons for contacts in Factor 6 skill needed to accomplish work through person-to-personactivitiesFactor 8 Physical Demands o The nature frequency and intensity of physical activity Factor 9 Work environment oThe risks and discomforts imposed by physical surroundings and the safety precautions necessary toavoid accidents or discomfort Factor 10 Supervisory and Management Responsibility oThe level of management responsibility assumed by the position 9 I U 0 FBI HI ti Q Q U W VI U i-Ii O Q II II O N O N N m O O N O O II J II f t N MNNW O 1 f21 a l l 7 N N N N W QLL to J J II I I O O N M N W Z M H I I II N N N N N 2 Y o II p0 LL J J II II N N w9 JQ 0 a I O tt 1A N N LL N N p Uz g2 Q a I J I I N N N 1 O i -II N N N N NciaII o U az LL I I I M N N N N N N 4 J II O Q N l a 00 00 N N N N N N N O O OU2LaLdOU J J II II II M M N N N N N N N n II IA O O O o2f a II N N N n n n O d LL U Q IL W J II LL J II V M M M N N N N I m u n u In N In N o N 0 n r7 Q X Hd II II N N N N N N O W F U J a LL O J J 11 II V M M N N N N U j w u o o In u In u In In n In M Q W Z H d II II N7 NV n N tN r N f N N N N N O w i W CI i J II M M M M N N N N Y to u o 0 o O In u7 u In u N a Q JO0 F d II 11 M O O N Q V r N f N t N N N N O y 2 IOI J II V Q M M M N N N N W O y H IIII O O ON O ON O N O O O O O Q pW d II N N m m n N U M M N WK J U O Lal Z W2 i II r O O N 7 7 M M N J II W J ii u ii II II II O II II Q m U W LL O 2 - a 0 a 0 a 0 a 0 n 0 a 0 n 0 n a a o a ii O a Q OO to 0N U O O O m z M 2 U U II y 2 Q O IL O Q U IL d II O OI I ONNN N O WrII The Compensation Plan The compensation plan developed for the City is based on an internal value system reflected in the classification plan and on a salary survey of comparable organizations to help assure an externally equitable and competitive pay system The pay plan consists of thirty grades Tables IV -A B and Cdisplay the proposed salary scales Compensation Plan A reflects salaries at 115 of the market or average compensation orapproximately the third quartile of responding organizations Placing the salary scale at 115 of the labor market means that a market salary of40 000 would translate to46 000 At this level theentry-rate for the organization would be greater than approximately 75 of competing organizations Compensation Plan B reflects salaries at 1075of the market a 40000 market survey salary would translate to 43000 with Miami Beachs entry-rategreater than approximately 62 of its competitors and Compensation Plan Creflects salaries at100 of the market a 40 000market survey salary would remain at 40 000with the entry-rate forthe organization greater than approximately 49 of salary survey respondents The proposed salary range for grades 1-23 non-management levelpositions isfifty percent from the minimum tothe maximum ofthe pay range 65 for grades 24-30 management-level positions The Citys currentsalary ranges for eachgrade is anywhere between 10 for certain Fire and Police promotional positions all the way up to 61 5 from the minimum to themaximum of the pay ranges There does not appear to be any difference between classified and unclassified management-level v non-management-level The range for allproposed grades continuestobe deliberately broad so that problems associated with employees reaching the top of their pay range will be minimized The range is greater for positions in grades 24-30 since national recruitment strategies are normally required for thesemanagement-level positions Department director positions are placed at grade 27 28inthe new pay plan This flexibility in hiring departmentdirectors will 11 allow the City to adjust salary offers to match the particular qualifications of a successful applicant for these important positions This is not unusual among large organizations and is used as a pay banding strategy to insure competitiveness in the labor market for these management-levelpositions Further it is recommended that unlike the City scurrent system where no additional compensation isprovided formaxed out employees other than the COLA the City should consider apolicy that once employees reach the top of the range performance meritincreases should beearned as alump sum payment one-time bonusrather than being added to base salary This will help alleviate retention and motivation problems associated with employees who have maxed out oftheir pay range The broad pay range and lump sum payment process are considered to bebest practices in allowing a jurisdiction to effectively manage its compensation system on a long-term basis Inorder to keep the proposed salary table current aperiodic market adjustment based onmarket conditions should be considered This adjustment should be applied to the salary schedule and as ageneral percentage salary adjustment for all employees when market conditions dictate This market adjustment should be made in addition to employee performance awards Thus the City may consider budgeting for two annual personnel cost adjustments 1 an adjustment applied to every employee s salary andevery pay range equally when market conditions dictate similar to the cost-of-living adjustment now employedbytheCity and 2 merit increases linked to employee performance Inrecognizing promotion the City has traditionally awarded an increase to the minimum of the new pay range or 5 whichever is greater After the economy is in full recovery the City may consider changing the 5 amount to10 standard practice oflocal government organizations Itisour professional opinion that a true promotion should be recognized at this level 12 Table IV - A Proposed Salary Scale 115 of Market Entry rate is greater than approximately 75 of competing organizations City of Miami Beach Personnel Project Grade 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 UNC MINIMUM MAXIMUM24563 4137376 1325806 9339268 2927113 4041256 2528486 0243344 8529928 1245539 1831443 2447844 6033035 0550266 7334707 4552811 4936464 5155485 0738310 5358294 0040250 0061245 1442287 6664345 6744428 4767603 1746677 6671025 5849040 7274621 2551523 4078398 9554131 7882367 9056872 2086537 7759751 3590918 7562776 2695521 5169293 25105437 8776486 78116383 6884427 09128465 8197909 55161550 75 102 866 22 169729 26108073 82178321 80125332 50206798 62131677 45217267 80145347 27239823 00152705 48251964 04Unclassified -range determined by the CityCommission13 Table IV - B Proposed Salary Scale107 5 of Market Entry rate is greater than approximately 62 of competing organizations City of Miami Beach Personnel Project Grade 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 UNC MINIMUM MAXIMUM22961 4434938 5524123 8736707 3225345 1438565 6326628 2440518 0127976 2942569 2329392 5944724 3030880 5946988 4732443 9249367 2634086 3951866 4835812 0254492 2237625 0057250 8939529 7760149 2141530 9663194 2743633 4666393 4845842 4169754 6548163 1873285 9850601 4476996 0853163 1480894 0055854 5284989 2658682 1689291 8564774 1298561 4971498 51108793 4478920 98120087 6091524 14151014 8396157 55158659 96101025 53166692 12117 158 64193311 75123089 79203098 16135868 10224182 37142746 42235531 60Unclassified -range determined by the CityCommission14 Table IV - CProposed Salary Scale 100 of Market Entry rate is greater than approximately 49 of competing organizations City of Miami Beach Personnel Project Grade 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 UNC MINIMUM MAXIMUM21359 4832500 9722440 8134146 3423576 8735874 9924770 4537691 1726024 4639599 2827341 9441603 9928726 1343710 2030180 3945923 0331708 2748247 8833313 5050690 4335000 0053256 6336771 8855952 7538633 4558785 3540589 2761761 3642644 1064888 0344802 9668172 9947071 1171624 2549454 0875250 2251957 7079059 7754588 0683062 1760255 0091685 0966510 24101203 1973414 87111709 3885 138 74140478 9189448 88147590 6693977 23155062 44108984 78179824 89114502 13188928 52126388 93208541 74132787 37219099 16Unclassified -range determined by the CityCommissionis Cost of Implementation The following section presents three implementation plans or options for the Citys consideration The cost figures do not include benefit or overtime costs Thus the following cost figures do not represent the Citystotal personnel costs for these positions Table V depicts the cost to implement the new plans The annualized cost to implement classification changes necessitated by Plan A is approximately 1172719or 100 ofprojected year-endpayroll cost Plan A is approximately the third quartile 115 of the labor market and should prove to be effective in attracting and retaining a quality workforce The City spolicy has traditionally been to hire candidates atapproximately 115 of the market in order to attract and retain the best possible candidates and employees The cost to implement Plan B approximately 107 5ofmarket higher than approximately 62 of competitor employers isapproximately 511 460or0 44of projected year-end payrollcost The cost to implement Plan Capproximately 100 of market higher than approximately 49 of competitor employers isapproximately 117 992 or010 ofprojected year-end payroll costIn analyzing the labor market data for the study all survey results were normed using the City of Miami Beach as a point of comparison In projecting the implementation cost for the new pay plans each employees projected salary as of September 30 2009 was evaluated to determine which salaries would be above the maximum suggested pay range for his or her classification The 2009 projection assumed that all employee salaries and pay ranges would be increased by the 4percent COLA for FY 2008 09 and thateach employee would move to the next step which ranges from 3percent to4 percent for the employees in Lifeguard I Lifeguard II and Lifeguard Lieutenant classifications depending onnumber of years ofservice to 5 percent for those employees covered by the FOP and IAFF 16 collective bargaining agreements or receive the full 4 percent merit for all other classified and unclassified employees up to the maximum ofthe range We recognize that not all employees will receive the fu114 percent merit but it represents the potential maximum For Plan A 283 out of 1895 employees are projected to exceed the maximum of their pay range by a total amount of 1365685 This means that the current salary level for these employees exceeds the recommended pay range maximum by this amount These employees should be considered fully compensated For Plan B 389 employees are projected to exceed the maximum range by atotal amount of 3141551 For Plan C 763 employees are projected to exceed the maximum oftheir pay range by atotal amount of 6417916 Condrey and Associates recommends that these fully-compensatedemployees remain at their current salary level until such time as the maximum range for their assigned pay grade meets or exceeds their current salary In choosing one of the three plans to implement Condrey and Associates recommends that the City consider all three plans Implementing Plan A would allow the City to retain its current position in the labor market and its reputation as an employer of choice It has an advantage over Plans B and Cin that its salary scale values are respectively 7 5and 15 higher yet its cost ofimplementation isonly approximately 6 more than Plan B and 9 more than Plan C In ordinary circumstances Plan A would be a logical choice for the City however given current economic conditions Plans B and C should be given consideration The main disadvantage of implementing Plan B or Plan C is that it would put the City in a less advantageous position in its recruitment efforts Additionally the relatively large number ofmaxed out positions salaries exceeding the top of their respective salary ranges particularly with Plan C may create employee morale and retention problems for the City of Miami Beach Plans B and C sadvantages are monetary given the slight percentage difference in 17 implementation cost and that Plan B would essentially cap performance increases by approximately 100 more employees than does Plan A 389 v 283 and that Plan C would cap approximately 375 employees more than Plan B 763 v 389 18 Table V Cost of Implementation City of Miami Beach Personnel Project ImplementationCosts Plan A 1172719 100 Plan B 511460 044 Plan C 117992 010 1 Increases are projected based on projected September 2009 payroll total of 117296556 Excluded from this figure are salaries for elected officials contract employees and some temporary employees The figures presented are exclusive of overtime and benefits costs 19 Future Pay Practices In addition to conducting a classification and compensation study Condrey and Associates was charged with the task ofreviewing the City of Miami Beachs pay policies in light of the Cityspast practices and recent Florida legislation related to municipal taxation authority To assist in this process Condrey and Associates contracted with Dr Jonathan West of the University of Miami to conduct a best practices survey of selected municipal governments Summary results of this survey and a list of responding organizations are presented in Appendix D Condrey and Associates also contracted with Dr Rex Facer of Brigham Young UniversitysRomney School of Management Dr Facer reviewed the Citys past practices related to cost-of-livingandstep increases Based on the above research we present recommendations for the City s considerationas itimplements the proposed compensation system These recommendations seek toestablish an equitable compensation system -one that isfair to employees and to the residents of Miami Beach The following recommendations should allow the City to continue to attract and retain a quality work force under its current revenue constraints Pay Structure -General Increase The City s pastpay practice has been to award a general increase greater than the Consumer Price Index CPI The impact of that pattern has substantial implications for compensation over time To explore this we look at the impact of different strategies for cost of living adjustments We compare the impact on a median salary using the Miami area specific CPI and the COLA historically used inMiami Beach The data below demonstrate that salaries 20 adjusted using the Miami -Fort Lauderdale CPI grew approximately 32 during this time period However salaries using Cost-of-LivingAdjustmentsCOLAs by the City for this same time period increased by 42 this amount is above any increases due tostep or merit adjustments This 10 differential represents anapproximate 10 million addition topayroll based on this factor alone The above practice is not in keeping with organizations included inthe Best Practices Survey where only one of the 18respondents report general increases greater than the Consumer Price Index Comparison of Cost of Living Adjustment Strategies Miami Ft CPIAdjusted Miami Beach Miami Beach COLA Lauderdale CPI Salary COLA Adjusted Salary 1998 Salary 56 221 0056221 0019993 0 57907 6330 57907 6320003 1 59702 7740 60223 9420011 6 60658 0140 62632 8920021 4 61507 2240 65138 2120032 9 63290 9330 67092 3520042 8 65063 0830 69105 1320055 0 68316 2335 71523 8020064 9 71663 7360 75815 2320073 6 74243 6250 79605 99SalaryChange 1998-2007 18 02262 2338499 PercentChange1998-2007 32 1 416 Costof livingsalary adjustments occur using the following formula New Cost of Living Salary Previous Salary 1 Adjustment Factor where the adjustment factor is either the CPI or the Miami Beach COLA 21 It is the recommendation of Condrey and Associates that periodic market increases similar to the cost of living adjustment now employed by the City increases applied to the pay structure and to all employee salaries below the top of the respective pay range be limited to the Consumer Price Index for the Miami -Fort Lauderdale area Such increases should only be implemented when deemed desirable by the City Manager and City Commission These adjustments should serve as a surrogate for an annual salary survey To make sure that the Citys pay structure remains in a competitive position the City should conduct a salary survey every four to five years or so Pay Structure -Step Increase In addition to outpacing inflation with its general increases the City has also maintained a step structure incremental salary steps achieved annually for many positions In some cases these step increases approach 5 Thus an employee depending on his or her classification whose salary is below the top of the pay range may expect an increase of approximately 7 to 9 for the current fiscal year based on the combined effect of the general COLA increase and merit or step increase Such an amount is double or triple the national Wage Increase Index average for most years Clearly such a pay practice is not sustainable and its continuing implementation would most probably force a further reduction in the Citys workforce It has also led to the large number of maxed out employees It is the recommendation of Condrey and Associates that steps be eliminated from the new pay plan However in keeping with Best Practices we recommend that merit increases in the range of2-3be awarded toemployees meeting performance standards and whose current salary is below the top of his or her pay range This amount added to employee base pay should 22 not be a fixed amount or percentage but allocated as deemed appropriate and feasible by the City Manager and City Commission In other words the increases should vary annually to correspond with the Citys fiscal condition Fair Labor Standards Act In many instances the City awards overtime payments that are in excess of that required by the Fair Labor Standards Act FLSA These excessive payments most probably exceed 250000 annually and could be better utilized to fund the Citys overall pay structure For example double and triple time is paid in some instances where the law only requires that overtime be paid at the rate of 15 times the normal hourly rate It is the recommendation of Condrey and Associates that the City not exceed the requirements ofthe FLSA Implementation of this recommendation alone would significantly offset costs associated with implementing the proposed compensation system In addition it is the opinion of Condrey and Associates that there are a number of ways to manage overtime costs which are calculated on extended wages some of which are associated with FLSA These specific recommendations will impact each of the collective bargaining units so therefore these recommendations would need to be bargained Condrey and Associates is available to assist the City in this process if so requested Best PracticesBenefits Survey The City of Miami Beach currently offers its employees a comprehensive benefits package Depending on the salary group all full-timeemployees are offered different levels of Group Health and Dental Insurance Basic Life Insurance and Accidental Death and Dismemberment coverage 23 Employees also participate in a defined benefit pension plan Vesting varies depending on the particular plan with 5 years for the Miami Beach Employees Retirement Plan for general employees and 10 years for the Miami Beach Police and Fire Pension Plan for police officers and firefighters The retirement age employee contribution rate Final Average Monthly Earnings FAME calculation and other details also vary by plan and the employeeshire date Retiree health insurance is also offered by the City with the City sharing in the costs The Citys leave practices and policies are also comprehensive Full-timeemployees accrue up to 96 hours pro-rated forshift personnel of sick and annual vacation leave during the first 10 years of employment The annual leave accrual grows to 136 hours per year for an employee with 10 to 20 years of service and to 176 hours per year for employees with over 20 years of service Additionally the City celebrates 10 legal holidays and grants employees 3 floating holidays and a birthday holiday for a potential of 38 paid days per year for the first 10 years if all holidays floating holidays birthday sick and annual leave are used In addition all employees are eligible for 3 Emergency Vacation days that they can use at their discretion If these Emergency Vacation days are used they are deducted from the employee s annualleave balance In addition to the above employees can also participate in a number of voluntary benefit plans at the employee s ownand full expense depending on salary group The premiums expenses and or contributionamounts aretaken directly from the employee s paycheckThese include Supplemental Life Insurance Health Care and Dependent Care Reimbursement Flexible Spending Accounts Universal Life Insurance Disability Insurance Long-Term Care InsuranceCritical Life Insurance Lump Sum Cancer Policy Pre-Paid Legal Services 457Deferred Compensation Plans and Roth IRA accounts The City also provides Tuition Assistance access 24 to child care services at Mount Sinai Medical Centers Young Presidents Club Child Care Center and a myriad of discounts that private vendors such as Dell Computers and local restaurants offer to City employees A Personnel Cost Containment Benchmark Survey was distributed to 41 local government jurisdictions and private corporations Nineteen 19 organizations responded representing a 463 response rate The responding organizations were the cities of Clearwater Coral Gables Fort Lauderdale Hollywood Miami Miami Beach Pensacola St Petersburg Charlotte New OrleansDepartment of Civil Service New York Office ofthe MayorOffice of Labor Relations San Antonio San Diego Santa Barbara Santa Fe Savannah and Virginia Beach as well as the University of Miami and the Ryder Corporation The results ofthe survey illustrate what organizations are doing to control costs where Miami Beach is in line with other organizations and where Miami Beach stands out The most popular personnel cost reduction strategy 58 is to increase employee group health contributions Other strategies included enhancing or adding mail order prescription plans enhancing employee wellness programs and adjusting health plan details such as deductibles co-paymentsand limits Without seeing the premium rates for all the respondents but looking at Miami Beach spremiums for some of its group health plans it appears that increasing the employee contributions may not be an option for all of the City of Miami Beach group health plans as some employee contributions and premiums are already high Miami Beach indicated that they had explored and implemented aself-insurance grouphealth plan as a way to possibly contain costs Additionally the opportunity exists forthe City to reexamine its plan structures when it goes out to bid for a new group health plan vendor for the plan year starting January 12010 25 The Citys leave accrual rates appear to be appropriate and in line with what other similar-sizedorganizations offer The City is slightly more generous in its use of floating holidays and its paid employees birthday leave Additionally the City retirement benefit while generous appears appropriate considering the 8 employee contribution tothe fund When asked about the budgeted average percent increase COLA and merit stepincreases peremployee for the current year ten jurisdictions reported a 3 5percent increase or less and seven reported a 3 8percent increase or higher The extremes ranged from one jurisdiction that reported no increase toanother Miami Beach that reported a nine percent increase Therefore it is recommended that Miami Beach reduce their budgeted average percent increase per employee The following are other cost containment survey results where Miami Beach stands out Miami Beach offers longevity salary adjustments but only 32 of respondents offer this adjustment In salary adjustments Miami Beach reported a 5 maximum increase for police and fire personnel based on prescribed steps achieved over defined periods The respondents average maximum is4 11with most actual awards below this level One of the areas that set Miami Beach apart from study participants with similar total number ofemployees and total payroll costs was thenumber ofdays of employment required before qualifying forgroup health benefits While Miami Beach requires 90 days to qualify six comparable jurisdictions required 30 days or fewer Miami Beach isone of four participants 21 that does not contribute toSocial Security 68 participate and 11 had no answer 26 A endix A Cit of Miami Beach Sala Surve Summar - Normed osition Title Minimum Annual hate Mean Minimum Annual Rate Median2 Maxiamu Annual Rate Meant Maximum Annual 2ate Median Average Annual Mean Average AnnualMa ieittAdministrative Aide II37 27438 44953 65951 93845 61247 159 Assistant Fire Chief98 02693 133125 162120 677107 635104 127 Auditor43 22743 26666 98665 85455 78554 638 Battalion Chief76 55676 564101 745103 24490 07494 624 Bud et Officer60 02754 29186 09387 52475 07574 852 Ca italPro ects Coordinator71 25166 778109 78995 82685 54878 160 C enter I36 29537 23250 14052 57139 59840 359 Chief Electrical Ins ector54 58053 47378 96278 27065 76663 133 Code Com liance Officer I40 75842 53657 94956 19548 42245 672Communications O erator36 09937 35352 77453 89641 12244 297 Dis atcher33 49933 17949 90050 75238 66737 295 En ineerin Assistant I37 51336 33752 14450 72847 47945 526 Executive Office Associate I Sr Admin Asst43 54842 97361 67058 30153 51050 960 Financial Anal st I47 57347 28266 81468 54856 35557 285 Financial Secialist III45 61846 06764 99164 31957 10358 113 Fire Ca tain62 56361 39183 74386 17073 82175 545 Fire Lieutenant55 96255 40776 14077 13169 20971 327 Fire Protection Analyst Fire Ins ector48 20445 36465 20866 18455 61555 149 Firefi ter I41 47441 74661 30561 24248 25248 885 Hea E ui ment Oerator I33 33834 72446 64645 56538 33239 292 Human Resources Admin I56 44954 83777 84874 48562 79663 416 Human Resources Technician II37 39536 50252 33251 99044 87743 975Information Technolo S ec I42 38943 80061 78761 33948 81847 018 Le al Secreta36 77236 86952 76049 79844 35144 986 Life uard I26 99527 29940 88440 30428 00129 633 1 The mean is the arithmetic average of the data z The median is the midpoint of the data For example one half of the respondents reported salaries above this level one half reported salaries belowit27 esitian Title Minimum Annual Rate Mean Minimum Annual Rate Median Maximum Annual Rate Mean Maximum Annual late Median Average Annual Mean Average Annual 1Vledian Mechanic II 37151 38357 53370 54191 45231 44392 Munici al Service Worker I 27808 27100 37646 36615 29460 28440 Office Associate IV 31142 29736 44390 42799 34782 33257 Office Associate V 34437 32814 48662 47157 37583 38967 Permit Clerk I 30580 30455 44004 43008 34853 35235 Police Ca tain 78839 74686 105523 105302 99243 100591 Police Lieutenant 71195 65667 93204 91992 85394 87744 Police Officer 44205 43181 66967 65502 53401 53929 Police Ser eant 61071 59928 80481 79461 72648 73546 Pool Guard I 29681 25955 41595 34592 26560 26316 Recreation Leader I 25957 26694 37430 39229 31942 31779 Senior Electrical Ins ector 46310 43037 66859 63225 55511 55888 Senior Planner 57900 54824 83937 78766 69189 67806 Senior Plumbin Ins ector 46520 42591 68205 63257 52857 55235 Senior S stems Anal st 59102 57635 87978 88897 75200 74583 Waste Collector 28698 29083 38865 41517 31619 30291 Water Meter Technician I 29898 29328 41106 40086 34764 34973 28 Appendix B PositionGrade Analysis by Grade City of Miami Beach Personnel Project POSITION GRADE City Attorney iJNC City Manager IJNC Deputy City Manager 30 Assistant City Manager 29 Chief Deputy City Attorney 29 Chief Financial Officer 29 Budget and Performance Improvement Director 2728 Building Director 2728 Capital Improvement Projects Director 2728 City Clerk 2728 Deputy City Attorney 2728 Fire Chief 2728 Human Resources Director 2728 Parking Director 2728 Parks and Recreation Director 2728 Planning Director 2728 Police Chief 2728 Public Works Director 2728 Tourism and Cultural Development Director 2728 Assistant Fire Chief 26 Assistant Police Chief 26 First Assistant City Attorney 26 Building Official TC 25 Fire Division Chief 25 Fire Marshal 25 Police Division Major 25 29 POSITION GRADE Assistant Director -Building 24 Assistant Director -Capital Improvement Project 24 Assistant Director -Finance 24 Assistant Director -Human Resources TC 24 Assistant Director -Parking 24 Assistant Director -Parks and Recreation 24 Assistant Director -Planning 24 Assistant Director -Public Works 24 Bass Museum Director 24 Budget Officer 24 Chief Structural Engineer 24 City Engineer 24 Code Compliance Director TC 24 Economic Development Director 24 Fire Battalion Chief 24 Fleet Management Director 24 Information Technology Director TC 24 Internal Auditor 24 Police Captain 24 Procurement Director 24 Property Management Director TC 24 Real Estate Housing and Community Development Director TC 24 Sanitation Director 24 Senior Assistant City Attorney 24 Application Systems Manager 23 Assistant to the City Manager TC 23 Building Operations Manager 23 Chief Accountant 23 Chief of Staff 23 Civil Engineer III 23 Finance Manager 23 Revenue Manager 23 Senior Capital Projects Coordinator 23 Structural Engineer 23 Systems Support Manager 23 Technical Services Manager 23 Treasury Manager TC 23 Water and Sewer Superintendent 23 Capital Projects Coordinator 22 Civil Engineer II 22 30 POSITION GRADE Cultural Affairs Program Manager 22 Film and Event Production Manager 22 Marketing and Tourism Manager TC 22 Planning and Zoning Manager 22 Police Lieutenant TC 22 Preservation and Design Manager 22 Special Assistant to the City Manager 22 Asset Manager 21 Assistant City Clerk 21 Assistant Director -Bass Museum 21 Assistant Director -Property Management 21 Assistant Director -Sanitation 21 Assistant Internal Auditor 21 Chief Fire Protection Analyst 21 Civil Engineer I 21 Community Outreach Manager TC 21 Community Services Director TC 21 Database Administrator 21 Development and MBTV Director TC 21 Development Coordinator 21 Employee Relations Manager TC 21 EMS Coordinator TC 21 Fire Captain 21 GIS Manager 21 Grants Manager 21 Housing and Community Development Director 21 Labor Relations Manager TC 21 Landscape Project Coordinator 21 Organizational Development and Training Specialist 21 Park Facility Manager 21 Parks Superintendent 21 Police Sergeant TC 21 Principal Planner 21 Public Information Officer 21 Radio Systems Administrator 21 Redevelopment Coordinator 21 Risk Manager 21 Senior Administrative Manager 21 Senior Business Manager 21 Senior Management Consultant 21 Senior Network Administrator 21 31 POSITION GRADE Senior Systems Administrator 21 Special Projects Administrator 21 Storage Area Network Architect 21 Streets Lighting and Stormwater Superintendent 21 Transportation Manager 21 Urban Forester 21 Water Field Operations Supervisor 21 Capital Projects Administrator 20 Chief Accessibility Inspector 20 Chief Building Code Compliance Officer 20 Chief Building Inspector 20 Chief Electrical Inspector 20 Chief Elevator Inspector 20 Chief Engineering Inspector 2U Chief Mechanical Inspector 20 Chief Plumbing Inspector 2U Financial Analyst III 20 Fire Lieutenant 20 Human Resources Administrator 20 Ocean Rescue Division Chief 20 Senior Auditor 20 Senior Management Analyst 20 Senior Management and Budget Analyst 20 Senior Planner 20 Senior Systems Analyst 20 Business Manager TC 19 Community Information Coordinator 19 Construction Manager 19 Field Inspections Supervisor TC 19 Financial Analyst II 19 Management Consultant 19 Project Manager 19 Right of Way Manager 19 Senior Media Specialist 19 Special Projects Coordinator 19 Building Permit Information Analyst II 18 City Surveyor 18 Code Compliance Administrator 18 Community Resources Coordinator 18 Contracts Compliance Specialist 18 32 POSITION GRADE Curator 18 Development Review Services Coordinator 18 E-GovernmentAdministrator 18 Electronics InstrumentSupervisor 18 Engineering Assistant III18 Environmental Resources Manager 18 Fire Protection Analyst 18 Human Resources Specialist 18 Ice Rink Manager 18 Legal Administrator 18 Maintenance Supervisor 18 Metered Service Supervisor 18 Office Manager City Attorney 18 Office Manager Office of the Mayor and Commission 18 Park Operations Supervisor 18 Parking Operations Manager 18 Parks and Recreation Administrative Specialist TC 18 Police Plans and Policies Manager 18 Public Information Specialist 18 Pumping Operations Supervisor 18 Redevelopment Specialist 18 Sanitation Superintendent 18 Senior Building Inspector 18 Senior Electrical Inspector 18 Senior Elevator Inspector 18 Senior Mechanical Inspector 18 Senior Plumbing Inspector 18 Senior Procurement Specialist 18 Senior Telecommunications Specialist 18 Sewer Field Operations Supervisor 18 Systems Administrator 18 Transportation Coordinator 18 Auditor 1 Building Inspector 1 Building Records Manager 1 Communications Manager 17 Construction Manager 1 Crime Scene Supervisor 1 Electrical Inspector 1 Electrician Supervisor 1 Engineering Inspector 1 Field Inspector II1 33 POSITION GRADE Financial Analyst I 1 Fleet Analyst 1 Fleet Operations Supervisor 1 GIS Analyst 1 Information Technology Specialist II 1 Mechanical Inspector 1 Planner 1 Plumbing Inspector 1 Senior Legal Secretary 1 Service Supervisor 1 Systems Analyst 1 Telecommunications Specialist 1 Agenda Coordinator 16 Central Services Coordinator 16 Crime Analyst TC 16 Engineering Assistant II 16 Environmental Specialist 16 Executive Office Associate II 16 Field Inspector I 16 Film and Print Coordinator TC 16 Financial Specialist III 16 Firefighter II 16 Fleet Operations Supervisor 16 Homeless Program Coordinator 16 Housing and Community Programs Specialist TC 16 Legal Secretary 16 Management Intern 16 Media Specialist 16 Ocean Rescue Captain TC 16 Paint Supervisor 16 Parks and Recreation Analyst 16 Plumbing Supervisor 16 Police Detective TC 16 Police Officer 16 Procurement Coordinator 16 Public Art Coordinator 16 Public Information Specialist 16 Recreation Supervisor I 16 Special Events Coordinator TC 16 Tax Auditor TC 16 Truancy Prevention Program Coordinator 16 Visual Communications Specialist TC 16 34 POSITION GRADE Air Conditioning Mechanic 15 Code Compliance Officer II 15 Constituent Aide TC 15 Electrician 15 Executive Office Associate I 15 Irrigation Systems Supervisor 15 Lead Mechanic 15 Sanitation Operations Supervisor 15 Sewer Supervisor 15 Street Supervisor 15 Tree Maintenance Supervisor 15 Victims Advocate 15 Warehouse Supervisor 15 Water Meter Supervisor 15 Water Supervisor 15 911 Communications Records Custodian 14 Assistant Ice Rink Manager 14 Buyer 14 Code Compliance Officer I 14 Communications Supervisor 14 Community Development Technician 14 Crime Scene Technician II 14 Customer Service Liaison 14 Employment Specialist TC 14 Engineering Assistant I 14 Financial Specialist II 14 Fire Equipment Mechanic 14 Firearms Specialist 14 Firefighter I 14 Grants and Operations Administrator 14 Heavy Equipment Operator II 14 Human Resources Technician 14 Information Technology Specialist I 14 Information Technology Specialist I WIFI 14 Mechanic III 14 Office Associate V 14 Paralegal 14 Park Supervisor 14 Planning and Zoning Inspector TC 14 Planning Technician 14 Plumber 14 35 POSITION GRADE Police Photographer 14 Police Records Manager 14 Pool Manager TC 14 Property and Evidence Technician II 14 Pumping Mechanic 14 Recreation Program Supervisor 14 Registrar 14 Street Light Technician II 14 Building Supervisor 13 Carpenter II 13 Complaint Operator II 13 Detention Officer 13 Lifeguard Lieutenant 13 Sanitation Coordinator 13 Account Clerk III 12 Backflow Coordinator 12 Carpenter 12 Case Worker II TC 12 Code Violations Clerk 12 Crime Scene Technician I 12 Dispatcher 12 Field Monitor 12 Heavy Equipment Operator I 12 Ice Rink Technician 12 Mason 12 Mechanic II 12 Meter Analyst 12 Office Associate IV 12 Painter 12 Parking Meter Technician II 12 Parking Operations Supervisor 12 Permit Clerk II 12 Police Officer Trainee 12 Police Records Supervisor 12 Press Operator TC 12 Property and Evidence Technician I 12 Revenue Processor II 12 Senior Central Services Technician TC 12 Sewer Pipefitter 12 Storekeeper III 12 Street Light Technician I 12 36 POSITION GRADE Waste Driver Supervisor 12 Water Pipefitter 12 Account Clerk II 11 Communications Operator 11 Dispatcher Trainee 11 Lifeguard II 11 Municipal Service Worker III 11 Office Associate III 11 Parking Meter Technician I 11 Public Safety Specialist 11 Sign Maker 11 Storekeeper II 11 Account Clerk I 10 Administrative Aide II 10 Assistant Pumping Mechanic 10 Building Services Technician 10 Central Services Technician 10 Control Room Operator 10 Customer Service Representative 10 Fleet Service Representative 10 Parking Dispatcher 10 Permit Clerk I 10 Police Records Technician 10 Revenue Processor I 10 Social Work Intern 10 Storekeeper I 10 Tree Trimmer 10 Water Meter Technician II 10 Administrative Aide I 9 Lifeguard I 9 Masonry Helper 9 Parking Enforcement Specialist II 9 Receptionist 9 Recreation Leader II 9 Water Meter Technician I 9 Administrative Clerk II 8 Municipal Service Worker II 8 37 POSITION GRADE Administrative Clerk I Museum Guard Educational Aide Parking Enforcement Specialist I Pool Guard I Recreation Assistant TC Recreation Leader I Municipal Service Worker I 6 Waste Collector 6 School Guard Municipal Service Worker Trainee 4 38 Appendix C Best Practices and Benefits Survey Introduction Summary of Findings from Best Practices Survey Nature of the Sample Completed surveys were received from 19 organizations including Miami Beach 53 percent from Florida and 47 percent from other states Participant Organizations Other States 47 w S Y are Most respondents wereHuman Resource Managers 39 or HR analysts 37 The remainder was other HR staff 16 or those occupying non-HRpositions 5 Responde ntsTitle Among the participating jurisdictions five had FY 2008 operating budgets of 700 million or more four had budgets inthe 300 to 499 million dollar range and three each had budgets ineither the 500 to 699 Organizations responding tothe survey were the cities of Clearwater Coral Gables Ft Lauderdale Hollywood Miami Miami Beach Pensacola St Petersburg Charlotte New Orleans DepartmentofCivil Service New York Office of the Mayor OfficeofLabor Relations San Antonio San Diego Santa Barbara Santa Fe Savannah Virginia Beach and the University ofMiami and the Ryder Corporation Please note that all responses will not total 19 as some items will not apply to all organizations or some organizations may not have replied to a particular item 39 million dollar range or had budgets of less than 300 million Operating Budget for the 2408 Fiscal Year s 4s 4c 0 35 c eAU 3 O pp 25 c i a 2 15 n a 1 05 0 Budget in Millions Total payroll costs were fairly evenly distributed across four categories i three were over 301 million ii two were in the 201 to 300 million dollar range iii three were in the 101 to 200 million dollar category and iv three had payroll costs of 100 million or less Total Payroll Cost a 0 q 3 cA 0 LLCb 6 a a i J t d0 ardUntker 107OQ Zl-3dt7Cost to MifYrons aver 3 140 under 294 3U0-499 500-699100 andabove The number of employees in participating organizations ranged from less than 1000 in one jurisdiction to 11000 or higher in four jurisdictions Seven organizations had between 1000 and 2999 employees two had 3000 to 4999three had 5000 to 7999 workers and one had between 8000 and 10999 Number of Employees at Participating Organizations 0 a A c Aoe O up c G 0 A ra a Number of Employees Salary and Salary Adjustments The median salaries in the majority of participating organizations 58 were at market rate with roughly the same proportion paying either above market rate 16 or below the market 17 Market data was not provided by 10 percent of participating jurisdictions Participating Organizations median salaries When asked about the budgeted average percent increase per employee for the current year ten jurisdictions reported a 35 percent increase or less and seven had 38 percent increase or higher The extremes ranged from one jurisdiction that reported no increase to another that reported a nine percent increase Only two organizations changed the percent for the average actual increase per employee this year from the previous year in the first instance the percentage went up from 3 to 5 in the other it went down marginally from 3to 25 41 under999 t000d999 3000-A9995000-7499 8000-10999 11000and above Budgeted Average Percent increase per Employee for Current Year a 0 mO m c 2q a a f i 0 Regarding the issue of salary adjustments most jurisdictions 68 offered added incentive pay for specialized certifications and 32 provided longevity bonuses not added to base salary This same percentage 32 offered longevity salary adjustments Salary Adjustments Does your organization provide Added Incentive Pay for Specialized Certifications Salary Adjustments Does your organization provide longevity Bonus- not added to base salary Salary Adjustments Does your organizat6on provide longevity Salary Adjustment 42 00 25 30 35 3g 40 45 50 S0 90 Percent Increase The responding jurisdictions were evenly split in how they adjusted salary based on COLAs with nine jurisdictions saying that salary increases for COLA is added to base salary that is less than CPI 1 city equal to CPI 2 greater than CPI 2 or other Nine cities made adjustments to the minimum and maximum salary ranges for COLAs that is less than CPI 1 city equal to CPI 2 greater than CPI 3 and other 3 Regarding merit or pay for performance increase 11 cities added this to individual employees base salary average minimum 15 and average maximum 457 Five cities report recognition for merit or pay for performance as aone time bonus with an average minimum of zero and average maximum of 125 percent Nine organizations report salary increases based on prescribed steps achieved over defined periods with the average minimum at 2 percent and the average maximum at 433 In your organization how does the average employeessalary increase from year to year Percent Count Method Less than CPI Equal to CPI Greater than CPI Other Salary Increase for COLA added 47 90 to base salary that is Adjustment to the minimum and maximum salary ranges for Minimum Maximum MeritJpay for performance added to individual employees 586 11A base salary 150 457 Recognition for meritJpay for performance as a one time 26 50 bonus 000 125 Saiary increases based on prescribed steps achieved over 47 90 defined periods 20096 43390 Personnel Cost-ReductionStrategies What are jurisdictions doing to reduce personnel costs Among the 15 strategies that respondents identified the most popular strategy was to increase employee group health contributions 58followed by enhanced wellness programs 32The same proportion of organizations 26 had audited medical claims enhanced or added mail order prescription plans and imposed a wage freeze Four jurisdictions used salary benchmarking three added employee health education programs and the same number increased group health co-payments deductiblesco-insurance and lifetimelimits two cities expanded pay for performance and explored self-insurance group health Fiveother strategies used by at least one jurisdiction were exploring regional funded benefit consortium cooperative benefit purchasing dropping specific group health coverage reducing bonuses paid incentives eliminating automaticCOLAs and eliminating steps in pay plan 43 What specific strategies or adjustments has your organization made to reduce personnel costs StrategyAdjustment Count Percentage StrategyAdjustn-ent Count Percenta Increased employee group health 11 58 Audited medical claims 5 26 contributions Explored regional funded benefit Enhanced or added mail order consortiumcooperative benefit 1 540 prescription plans 5 26 purchasing Explored self-insurancedgroup2 11 0Expanded pay forperformance 2 11 health Dropped specific group health 1 5 Added employee health 3 16 coverage education programs Imposed wage freeze 5 26 Enhanced wellness program 6 32 Reduced bonuses paidincentives 1 5 Used salary benchmarking 4 21 Eliminated automatic COLA 1 5 Eliminated steps inpay plan 1 5 increased group health co-payments deductibles co-3 16 Other Strategies 5 26 insurance and lifetime limits Employee Benefits When asked about benefit programs as a percent of payroll respondents identified group health costs ranging between 12 1and 40 of payroll Retirement and savings benefits had the next highest percentage overall but the range is a wider 6 8to 38 of payroll Legally mandated benefits ranged from 7 2to 38 with five of the six responding jurisdictions citing costs ranging between 7 2and 20 of payroll Other programs amounted toless than 5 of payroll costs for most organizations with one reporting 38 of payroll 44 Benefit Programs as a Percent of Payroll 450 400 0 350 a v- a 300 m 25A 200 150 100 50 00 --Group Health Legally Mandated Retirement Savings -Paid Time Off---Other Program Miami Beach and Florida Compared toOther Participating Organizations One of theareas that set Miami Beach apart from study participants with similar total number of employees and total payroll costs was the number of days of employment required before qualifying for group health benefits While Miami Beach requires 90 days to qualify six comparable jurisdictions required 30 days or fewer Miami Beach Requires the Most Days of Employment Before Qualifying for Group Health Benefits when Compared to Participants with similar total number of employees and total payroll cost Total Number of Employees 1500 1700 1900 2100 2300 2500 2700 1 02 0 o p a 3 c A a o u Fy Miami Beachca E 0 5 v a v 6 7 45 1 2 3 4 5 6 7Pa rticipating Orga nizations 10 20 30 40 50 60 70 30 90 Days of FullEmployment Needed foeEflgbFlty foeGroupHealthBenefFts When Miami Beachs overtime for police fire and other employees is compared to five other reporting organizations Miami Beach generally has a lower percentage of payroll devoted to overtime Compared to Miami Beach three of the five jurisdictions have a higher percentage for police four of the five jurisdictions have a higher percentage for fire and one of the five jurisdictions has a higher percentage than other non policefire represents 550 500 450 400 350 300 X50 Z00 7 50 ao 50 00 C4mparisan Between 5 Participants and 14tliami Beach in Payroll Budget and Number of Employees -1-Percenof awertime that police payraN represents -t-Percent ofovertime that zire payroll represents -Percent of overtime that other non-police firepayrollrepresents Miami ESeach Participating Organizations 54 100 0 150 200 254 340 E 354 4f 0 x50 500s54 644 19310 1000 1500 2aao zsoo a 3000 v 3500 v 4000 4500 c m 5000 r ssao 6aoo 6500 37 000 Thereare some benefits that are provided by participating organizations inFlorida more frequently than inother states Among these are overtime eligibility for defined contribution pension plans 6 versus 2 or 60 versus 22 dependent life insurance paid infull by the employee 7 versus 3 or 70 versus 33 short-term disability paidin full by the employee 4 versus 1or 40 versus 11 and long-term disability paid infullby the employee 4 versus 1 or40 versus 11 Miami Beach is1 of 5 organizations out of 10 inFlorida offering Point of Service medical plan compared toonly one participating organization offering this benefit from out of state 50 versus 11 46 Light wide columns Darkfine co umns-Operating Budget farTotal payral cast 2005 fiscal year Benefits Provided by Participating Organizations in Florida More Commonly Than in Other States Benefit Provided Florida Other States Medical Plan Point of Service Plan POSj 5 1 Overtime is eligible for Defined Contribution pension plan 6 2 Dependent Life Insurance Paid in Full by the Employee 7 3 Short-Termdisability Paid infull by Employee 4 1 Long-Term DisabilityPaid inFull by Employee 4 1 Induding Miami Beach Floridian Organizations OfferPoint of Service p65j Medical Plan More Than Other States Florida Oiher States Yes1145 i Ves 50 Floridian Organizations OfferDependent Life Insurance Paid in Full by the Employee More Than Other States Floridian Organizations Offer Overtime Eligibility forDefined Contribution Pension Plan More Than Other States Floridian Organizations Offer Short-Term Disability Paidin Full by the Employee More Than Other States Florida Other States 47 Other States Floridian Organizations Offer Long-TermDisability Paid in Full by the Employee More Than Other States Florida Other States Miami Beach stands apart from other participating organizations with a similar total number ofemployees on some other matters iMiamiBeach isthe only participating organization to provide a longevity salary adjustment Miami Beach is the Only Participating Organization toProvide longevity Salary Adjustment when compared to participants withsimilartotal number ofemployees Total Organization ParticipatingNumberofProvidesLongevityOrganization 1 1747 No 2 2241 No 3 2350 No 4 3538 No ii Miami Beach has the least number ofcoverage tiers with 2 example is 1 Employee only and 2 Employee plus family compared to eight other organization with 3 or 4 tiers example 1 Employee only 2 Employee plus spouse 3 Employee plus children 4Employee plus family The City of Miami Beach may wish to consider expanding the number ofcoverage tiers to three or four Miami Beach has the least Number of Coverage Tiers when compared to participants withsimilar total number of employees and total payroll cost Participating Total Number Total Payroll Coverage Tiers Organization of Employees Cost millions 2 15 1165 23 3 1691 94 53 4 1747 n a3 i Beach 2004 142 642 5 2241 n a3 6 2350 230 04 7 2670 152 43 8 353 3 03 48 iii Miami Beach is one of two out of 17 organizations that provide the Supplemental Retirement Program Roth IRA Miami Beach is One of Two Participating Organizations that provide the Supplemental Retirement Program Roth tRA Participating Total Number of Total Payroll Roth IRA Organization Employees Cost millions 1 990 61 No 2 1581 1652 No 3 1691 995 Yes 4 1747 na No Miami Beach 2004 14264 Yes r 5 i 2241 na Na 6 2 670 1524 No 7 3538 3 No 8 5233 na No 9 6669 na No 10 7131 na No 11 10857 8157 No 12 11 154 na Na 13 14228 na No 14 21000 11666 No 15 365739 1930930 No 16 na na No and iv Miami Beach has the highest percentage of employees participating in a Supplemental Retirement Program 87 compared to six other comparable organizations that range from 17 percent to 50 Miami Beach has the Highest Percentage of Employees Participating in a Supplemental Retirement Program Percentage of Participating Total Number of Total Payroll Eligible Employees Organization Employees Cost millions Participating 2 1747 na 17io ni Beach 2004 14264 87 3 2241 na 33 4 10857 8157 SO 5 21000 11666 30 49 Miami Beachs retirement benefits appear to be in line with its peer organizations Does your organization contribute to Social Security ParticipatingAnswer Organizations Yes 13 V o No Answer 2 No Miami Beach Does your organization provide employees with any of the following What components of the employees earnings are eligible for your DC pension plan ParticipatingAnswerOrganizations Base salary 1 Overtime 8 Incentive pay 6 One time bonus pay 4 Annual bonus pay 3 Other 3 No Answer 6 Base salary Miami Beach 50 Does your organization provide any supplemental retirement programs ParticipatingAnswerOrganizations Yes 14 What percentage of eligible employees are participating in a supplemental retirement program Participating Answer Organizations 17a 1 3a 2 3i 1 jai z Na Answer 12 51 Does your organizations pension plan have a Deferred Retirement Option Plan DROP provision Participating Answer Organizations Yes 8 iUo 6 No Answer 4 fVo Miami Beach bass your organizationspension plan have an early retirement provision ParticipatingAnswerOrganizations Yes 7 No 4 Na Answer Yes 7 Miami Beach 52 Miami Beach offers a competitive leave program that is comparable to its peer organizations The City is slightly more generous in its use of floating holidays and its paid employees birthday leave Conversely the City does not offer a sick leave bank allowing employees to donate unused sick time for use by other employees such a sick leave bank appears to be common practice among the organizations surveyed How many days must an employee work before they are eligible foe paid time off sick time vacation timel Answer Participating days Organizations 0 4 1 3 10 1 14 1 30 1 60 1 90 1 180 Z No Answer 3 130 -360 Miami Beach Does your organization offer aPaid Time dff PTO program where the employee is provided a pool ofannual leave vacation time sick timeand or personal time in which they use the time attheir own discretion without disclosing the reasonParticipating Answer Organizations Yes 3 No 16 Na Answer053 Annual Paid Halidays ParticipatingAnswer Organizations 1 g 4 95 1 10 4 11 3 12 1 13 2 14 1 No Answer 1 10 Miami Beach Employees Birthday paid holiday ParticipatingAnswer rganizations 0 8 1 1 No Answer 9 54 Floating Holidays for use at the employeesdiscretion NO Answer 5 Miami Beach What is your organizations rate of pay for working on a Holiday ParticipatingAnswer Organizations 15 11 20 1 r 3Othe NO Answer 3 55 90ofparticipatingorganizationsincluding IVliami Beach paid time off policy can be carried overyear to year if unused No No Answer 5 5 Yes 90 does your organizationspaid time off policy provide for carry-overof unused days from year to year Answer Participating Organizations Yes 17 No 1 No Anseh er1 Yes Miami beach If yes what is the maximum number of hours that can be carried over annuaiiy Vacation Hours Participating Sick Hours Participating Floating Participating PTO Hours Participating Organizations Organizations Holiday Organizations Organizations 240 1 1560 1 0 2 350 1 320 1 2080 1 No Ansever 16 No Anse rer17 400 2 no maximum 4 Na Answer Miami Beach No Answer Miami Beach 500 1 No Answer 12 no maximum 1 No Answer 11 attachment doesnoz rVliaml E 56 Can employees be paid for unused paid time off ParticipatingAnswer Organizations Yes 9 Na 6 No Answer No Answer 3 Miami Beach If yes what is the maximum number of hours an employee can be paid Participating Participating Floating Participating PTO Hours Participating Vacation Hours Organizations Sick Hours Organizations Holiday Organizations Organizations 15 1 96 1 10 1 125 1 80 1 No Answer 17 No Answer 17 780 1 200 1 50 Miami Beach 0 Miami Beach No Answer 16 No Answer 15 0 Miami Beach does your organization have a sick leave bank allowing employees to donate unused sick time far use by other employees who have exhausted their paid time off Participating Answer Organizattons Yes 12 No 4 No Answer No 2 Miami Beach If yes what is the minimum number of hours an employee must maintain of sick vacation annual or compensatory time Answer Participating 17ours Organizations p 1 16 1 40 1 160 1 240 1 500 1 no minimum 1 No Answer NA 11 Mianii Beach 57 What is the maximum number of hours an employee can deposit into the sick leave bank in any one year Answer Participating hours Organizations What is the maximum number of hours an employee can withdraw from the sick leave bank in any one year Answer Participating hours Organizations 0 1 4 1 Z40 1 1440 1 2400 i No Answer 13 NA Miami Beach 58 Appendix D Best Practice Survey Survey Instrument City of Miami Beach Personnel Cost Containment Benchmark Survey Please prvcie thF falloU-ing backrcund inforrr7tlonfor ycrr oranization Tls will allow yrrrvrtarfizafonto be idertitied as a participant in the survey identify a source at your crganizatlon for clarficatlon of survey responses ard assign your organization fio tha appropriate data group for analysis Name of raanization ---Address ---City State z P -Ciuestionnaire completedby Name Your Pasition Title Numberof years with argar ization Telephone Fax Email Whaispecific strategies or adjustments has yaur organization made to reduce personnel costs Please checkall that apply Ine reased employee group healthIncreased group health ca-paymentsdeductibles contributions co-insurance and lifetime limits 2Hew many employees are in yaurorganization FuII-timePart-time Temporary 3 What percent of your employees are unionized is Full-tunePart-time 4What is theIota dollar amount of your operating budget fcrthe2006scc alyear5What is your total payroll cast ieallwages avertime special payrents bonuses FICA MICA Medicare workers corrrpensafion unerrsploymer lcompensatianand other payments directly related tca thewarkfarce 6Please describe themost effective strategy you have utilized to contain or control your overall casts associated with pay and benefits 7What strategies are you p6anning on iniK7lernenting withinthe next year to trelp your orga7nization reduce group health costs 59 Salaries 8 Are yrur organizationsmedian salaries Belevd market rates at market rates Abave mesrket rates If ycur arganizatiansmedian salaries areaknsemarket rates vJhat is your arcanizations policy fo set salary ranges cabove market rates2 7 1Jl 15a Lb Higher-please indicate percentage abave median a What is yaur budgeted averatae percerrt increase per emplayee for the current years 10 What was your average actual increase per emplayee for this year Salary Adjustments 1 1 In your arganization hcwdoes theaverage employeessalary Increase frorr year to year Leis than CPI Egcalto PI Iar increase for Cost of Liiing Adjustment CCLA added to base salary ihat is Adjustment to the minimum and maximum salary ranges far Ct7LA that is Pv1eritlpay for performance added tc individual errployees base alary PInimm PimaS rndlC-atepercentage Inc -reQSeRecognition for meriflpay for performance as a ane time bonus Minimum Please indicate peraentage increase lar incre -sas based n prase rived steps ahievedover defrned peruds Pninimuni Please indicate percentage increase reater than CPI Maximum Maximum tlaximurn 12 L7aes yaur organization provide any of the following Added incentive pay far specialszed certifications Longevity bonus -net added to base salary Longevity salary adjustment 13 What percent of your police payroll does overtime represent2 l 14 what percent of yaur fire payroll daes overtime represent 5 15 What percent of your ether non-policefirepayroll daes cwertimerepresent - ---1bPleaseprovideyaurcrganizatian sccstof benefits programs as crpercent of i r IIr tI c-Benefit Program Oost as a fof Payroll Group Health medical dental vision lifedisability etc Ianaiki mnei m4e rtAC C14t 4CRMeclica rP workersorraoen53tiorr etC Ftirementand avings 401 k pension etc Paid time offvacation sick personal hoGidays etc Other tuition reimbursementprofeseonaiorganizationsetcl60 Group Health Plan 17 Please idenfify fhe nedicalplans proided to arrployees check all that apply HP1r onsumerisrrt Plans Ppp Indemnity Pr Other please describe- i Go you currently self-insurearfully insureyour group medical plan Self-insured RAIy-insured 19Haw daes your organization pay for medical benefits Fully paid by employer Pald in full by employee Share cast with employee Other please describe-Fully pay employee caverage dependents full paid by employee 2 How many caverage tiers doya have under yncr plant i e employeeonly employee land family would deihreel tiers 21 Nhat are they please check all That a rply Employeeanly Employee 2 dependents Employee 1 dependent spouse or child Employee children Emplcyae child Employee family Employee spouse Other please describe 22 Wi at isyouranticipated group health increase forthenext plan year At p ur r c rrzatiurhsilty f rCrcnpHealthCnaf s a-Ins Mier i yfII--nt 2d Haw areyear group rafeteriaPlan Mate Ptandate7Plan Volntar 12 medical benefits structured in your organization2 Please check all that applyl 25 How are yaur group dental benefits structured in your organizations Please check all that apply 26 Are incentives given to your employees that apt aut of the medical plane Yes No 27 Does yaur organization contribute to Social Security Yes Na 28 Does your organization provide employees with cant of the tollowina Defined Benefit Plan Df Defined CantritutianPlan DC Bath DB CC combined If it daes please indicate the employer and employee cantributior percentage Employer Contribution Employee Contribution Type of Ran Frcentage Fprcentage Defined Benafit D8 Defined Contribution DC ft 2v What components of theemplc7yeesearnings are eligible for yaur DC pension plan ease salary wertinfe Incentive pay Cane time bonus pay Annual bonus pay Jther please specify 3C Does your organization provide any supplemental retirement programs Yes No If yes please indicate the types of svpplementclplans preuided 401 k 457 defined contribution Roth IRA iJther please specify 31 What percentage of eligible employees are prtlcipatingina spplementalretirement program 32 Does yaur organizationspension plan have a Deferred Retirement Cption Plan DRrP provision Yes Nc If yes please indicate theemployee raraups eligible and the length of the DROP Does your organizationspension plan have an early retirerent provision Yes Nt- If es plcse indG-ate yirraarizatirrscarp retirerrentprovision -C3 1esyca rorganiztian offer any of the following benefitsl lease check all that aisply FAid infidl by the enployer Paid in fill by CIE COSt with rfavailable pleax medicate percent of the errployee employee nwnihty cost paid by employes 34 Basic Life Insirartce 35applemeraI Employee Lifekste ance 36Dependent Life Insurance 37Employee Accidental Death and Disnerrbemient Irmsance 8Dependent Accidental Death and 3Dismembermerrt Insurancet-Temr Disabilit -fnetSr b 39 y cerarary rep for the fiat 28weeb of araruvark reeted iiness or iryury-Long Temt Disability -Salary replacement 40 forempbyees deemedurble tov rork due D to an illness or irgtuy a JPaid Time Off 41 How many days must anemployee work befcne they are eligible for paid time off sick tune vacation tirrte Days 42 Does yaur organization after aPaid Time off PTC program where the employee is provided a pool of annual leave vacation time sick titre acrd or personal time inwhichi they use the time at their awndiscretie rfwithout disclosing the reasanj YesNc62 If checked Yes please carrrpete the last column of thefollowing chart only If checked Na please complete the chart for the programs your arganization affers FTO Prog ram indudesvacafron sick and Vacation Eck Leave FrnalTirrre personal time days per year after days per year after days per year after days per year after yearsof service yearsof service yearsof service yearsof service days per year after days per year after days per year after days per year after years of service years of service years of service years of service days per year after days per year after days per year after days per year after yearsof service years of service years of service years of service days per year after days per year after days per year after days per year after yearsof service yearsof service yearsof service yearsof service Holidays Please fill in the nurnber of paid halidays provided by your arganization 3Annual Faid Holidays dd rnplayee Birthday d5 Floatirta Holidays for use at the employees discretlonl d6 Wiiais your organizationsrata of pay fir working an a Halidy2 l ri tnesbole salary 2otimes base salary Cti-er Paid Titne aff Policy d7 Noes your organizationspaid time off policy provide far carry-overof unused days from year to year Ye5 No If yes what isthe maximum number of haurs that can be carried over annually Vacation Hat rsSick Hours Pleating Holiday PTA Hours 48 fan employees bepaid far unused paid time off Yes Na If yes what isthe maximum number of haurs an emC layeecan be paid Vacatian Hours Sick Hours Floating Holiday PTC7 Hours d9 Does your arganizatian have asick leave bank aNawing employees to danate unused sick time for use by ether emplayees who have exhausted theirpaid tune off Yes Nc If yes what isthe minimum number of hours an ernployee must maintain of sick vacatian onnual carcornpensatory time hours 50 What isthe maximum nurnber of hours an emplayee can depasit rota the sick leave bank inany ane year hours 51 What isthe maximum number of hours an employee c anwithdrawal Pram the sick leave bank inany one year haurs If you have any additional comments regarding this siirveyplease feel free tq include them an aseFrgrate sheet We realize your time isvgluable and appreciate your parr icipatiant7nce call surveys have been received and the results tabulated ocopyof fhe results excluding any identifying information willbe forwarded toyour attentian THANK YOU FOR YOUR TIME AN DFARTiCIPATION63 Appendix E Position Description Questionnaire Job Classification and Compensation Survey Identifying Information NAME OF ORGANIZATION City of Miami Beach DATE EMPLOYEE NAME as it appears on your paycheck POSITION TITLE DEPARTMENT SUPERVISORSNAME SUPERVISORS TITLE EMPLOYEESLENGTH OF SERVICE IN THIS POSITION Y M EMPLOYEESLENGTH OF SERVICE IN THE ORGANIZATION Y M EMPLOYEESCURRENT GRADE STEP ANNUAL SALARY POSITION DESCRIPTION QUESTIONNAIRE The purpose of this form is to aid you in describing your present position in terms of the duties responsibilities and qualifications required This form will not be used to evaluate your work performance or your qualifications The job evaluation plan will provide a factual objective basis for uniform and equitable pay relationships It will also provide basic information for the selection and promotion of employees Therefore it is essential that accurate information be obtained about the duties and responsibilities of each position 64 PART I--TOTHE EMPLOYEE You are the best person to provide the information about your job You know the exact tasks you perform and your responsibilities Therefore you are asked to fill in this position description questionnaire You should answer every question If the space provided for any particular item is not sufficient please attach another sheet Be sure to show the number ofany question answered onthe sheet attached You know the exact duties you perform and the responsibilities of YOUR POSITION DO NOT COPY OTHER EMPLOYEES ANSWERS EVEN IF THEIR JOBS ARE SIMILAR TO YOURS WE WANT YOUR OWN STATEMENT OF YOUR RESPONSIBILITIES ANDDUTIES IN YOUR JOB You may ask your immediate supervisor to explain questions you do not understand butuse your own words in answering all questions After the questionnaires have been analyzed and preliminary job descriptions developed an interview will be scheduled with you to be certain that the job description accurately reflects your position 1 MAJOR DUTIES The Major Duties section of the job description answers thequestion What does the employee do in the position It should briefly describe the major duties performed in plain language Duties are best described by using active verbs for example o Balances cash in register against the total or register tape locating and correcting errors o Types memoranda letters and reports in final form from handwritten notes o Develops plans specifications and estimates for urban expressways with separated intersections dividing strips weaving lanes and ramps If it is necessary todescribe incidental or occasional duties then explain how often they occur for example once amonth inemergencies and so forth 65 Please follow the directions below to describe your major duties a List the major duties that you perform NUMBER EACH DUTY The duty that you consider most important should be listed first followed by lower priority duties until the least important duty is described Describe the duties specifically so that they will be clear to someone who is not familiar with your work Give examples where appropriate b Estimate the percentage of time that you spend on each duty Although this may be difficult you are better able to do it than anyone else c If you perform duties of a supervisory nature describe those duties specifically and in detail Major Duties Order of of Importance Work Performed Time continued on next page 66 Major Duties continued Order of of Importance Work Performed Time 67 2 Which duty or duties do you think are most responsible list the numbers 3 a Which duty or duties do you think are most difficult list the numbers b What makes these duties difficult 4 KNOWLEDGE REQUIRED BY THE POSITION a List the basic knowledges and skills that are required to perform the duties listed in Item 1 for example knowledge of accounting sllin operating a typewriter accurately skill in operating afront-endloader etc DUTY NUMBER KNOWLEDGES ANDSKILLS 6s b List all of the specialized tools equipment and machines you use while performing your work c What licenses or certificates are required to perform your work d What kind of experience or special training is needed to perform your work 5 SUPERVISORY CONTROLS a List the numbers of the duties from Item 1 that you do repeatedly without receiving new instructions from your supervisor These instructions will be referred to as standing or continuing instructions What is the nature of the standing or continuing instructions you have been given regarding these tasks check one The instructions are detailed specific and cover all aspects of the work The instructions are somewhat general many aspects of the work are covered specifically but I must also use some judgment The instructions are general requiring me to use judgment The instructions are very general requiring me to use much judgment The instructions are in terms of goals and objectives Other describe fully 69 b List the numbers of the duties from Item 1 for which you do not have standing or continuing instructions What is the nature of the standing or continuing instructions you have been given regarding these tasks check one The instructions are detailed specific and cover all aspects of the work The instructions are somewhat general many aspects of the work are covered specifically but I must also use some judgment The instructions are general requiring me to use judgment The instructions are very general requiring me to use much judgment The instructions are in terms of goals and objectives Other describe fully How does your immediate supervisor review your work check all that apply My supervisor reviews most or all of my work while I am doing it My supervisor spot-checksmy work as I am doing it My supervisor reviews most or all of my completed work My supervisor spot-checks mycompleted work My supervisor does not review my work Other describe fully dWhen your supervisor reviews your work what is the purpose of the review check all that apply My compliance with detailed and specific instructions My compliance with established procedures The accuracy of my work The nature and propriety of the final results ofmy work Other describe fully 6GUIDELINES a What written guidelines or procedures eglawsbuilding codes rules and regulations do you use in your work 70 b Do the guidelines you use in your work require interpretation or are they clear and specific c Do you ever have to determine which guideline to apply in a specific situation Ifso when Please give an example 7 COMPLEXITY a Describe what makes your work routine complicated unusual or difficult to perform What obstacles are there in the work itself that make it difficult to accomplish 8 SCOPE AND EFFECT a What is the purpose of your assignment b What is the effect of the work you produce within your department c What impact does your work have beyond your immediate department 71 d How does your work affect outside organizations e What is the effect of errors you may make within your department Within other departments f Does your work affect the reliability accuracy or dependability of other work processes If so how 9 PERSONAL CONTACTS Describe the occupations of people with whom you deal in carrying out your work eg co-workersworkers in related support units recipients of direct services members ofthe general public orrepresentatives of other organizations Do not include contacts with your supervisor since supervisory contacts are described under previous questions 10 PURPOSE OF CONTACTS Describe the purpose ofthe above contacts for example to give or exchange information toresolve problems to provide services to motivate influence or interrogate persons or to justify defend negotiate orsettle matters etc 72 11 PHYSICAL DEMANDS Describe the physical demands of your job by checking as many of the following that apply Typically sitting at a desk or table Intermittently sitting standing or stooping Typically standing or walking Typically bending crouching or stooping Occasionally lifting light objects less than 24 pounds Frequently lifting light objects less than 24 pounds Occasionally lifting heavy objects 25 or more pounds Frequently lifting heavy objects 25 or more pounds Climbing ladders Using tools or equipment requiring a high degree of dexterity Distinguishing between shades of color Other describe fully 12 WORK ENVIRONMENT Describe the normal or usual conditions where your work is performed by checking as many of the following that apply Work is performed in an office library or computer room Work is performed in a stockroom or warehouse Work is performed in a very noisy place Work exposes me to much dust dirt grease etc Work exposes me to machinery with moving parts Work exposes me to contagious or infectious diseases or irritating chemicals Work is performed outdoors and occasionally in cold or inclement weather Work requires use of protective devices such as masks goggles gloves etc Other describe fully 13 SUPERVISORY AND MANAGEMENT RESPONSIBILITY List the name and titles of all employees who work under your supervision 73 14 Provide any additional information about your position that you consider to be important but which has not been previously mentioned PART II--TOTHE IMMEDIATE SUPERVISOR Review this employee squestionnairecarefully to see that it is accurate and complete Then fill out Items 15 through 18 Do not fill in these items unless you supervise the employee directly If you direct this employee through a subordinate supervisor have that supervisor complete Part II Your certification in Item 18 means that you accept responsibility forthe accuracy and completeness with which the entire questionnaire describes the duties and responsibilities of the job If Part Idoesnot express your view of the duties and responsibilities that you have assigned the employee it will be necessary for you to use Part II to qualify or elaborate onthe description There are two essential cautions you should observe 1 Under nocircumstances should you change oralter the employee sentries in Part I2 Do not make any statements or comments about the employee sworkperformance competence or qualifications This questionnaire will be used to evaluate the duties that constitute the position not the performance orqualifications of the employee Sign and date the certificate showing that you consider the entire questionnaire to be accurate and complete 15 Describe briefly the employee spositionas you see it Show how it relates tothe functions ofthe department 74 16 List the duties assigned to this employee that are most important use the duty numbers from Item 1 17 State any additions or exceptions to the statements made by the employee in Part I 18 I certify that the above information is accurate and complete Signature of Immediate Supervisor Name please print Date Department 19 Comments by department head 20 I certify that the above information is accurate and complete Signature of Department Head Name please print Date Department 75 City of Miami Beach City Commission Workshop March 2 2009 AGENDA ITEM 2 DISCUSSION OF THE MIAMI BEACH EMPLOYEES RETIREMENT PLAN AND THE CITY PENSION FUND FOR FIREFIGHTERS AND POLICE OFFICERS IN THE CITY OF MIAMI BEACH ALTERNATIVES WILL BE DISTRIBUTED VIA SUPPLEMENTAL AGENDA Agenda Item Date 3--i