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R5L Others Salary Ordinance -Weithorn--------------------------------- COMMISSION ITEM SUMMARY Condensed Title: An Ordinance Of The Mayor And City Commission Of The City Of Miami Beach, Florida, Amending Ordinance No. 789, The Classified Employees Salary Ordinance Of The City Of Miami Beach, Florida, As Follows: Providing For The Classifications In Group Vi, Not Represented By A Collective Bargaining Unit And Commonly Referred To As "Others"; Amending All OfThe Pay Grades By Abolishing Pay Grade 1 And Pay Grade 2; Eliminating The Annualized Salary For Each Pay Grade And Providing For The Biweekly Pay For Each Pay Grade; Establishing The Classifications Of Fire Inspector I And Seasonal Recreation Aide; And Effective The First Full Pay Period Ending In October 2014, Increasing The Minimum And The Maximum Of Each Pay Grade, By Three Percent (3%); And Granting An Across The Board Cost Of Living Adjustment Of Up To Three Percent (3%) For Any Others Employee Whose Base Salary Does Not Exceed The Maximum Of The Pay Range For The Comparable Job Title As Recommended By The 2009 Condrey Classification And Compensation Study "Pay Scale B" And Subsequently Amended By Seven Percent 7% In August 2013 By The Consultant; Repealing All Ordinances In Conflict; Providin For Severabili , An Effective Date And Codification. Ke Intended Outcome Supported: Attract and maintain a Workforce of Excellence. Supporting Data {Surveys, Environmental Scan, etc In the past six years, there have only been two COLAs, with the last COLA not having increased the minimum and the maximum of the pay ran es for the "Others" salary group. Item Summary/Recommendation: First Reading The City reached individual tentative three {3) year labor agreements covering the time period of October 1, 2012, through September 30, 2015 with each, the CWA, FOP and IAFF. Included in the individual agreements, the City agreed to provide a three percent COLA for all bargaining unit employees effective the first pay period ending in October 2014, adjusting the minimum and maximum of each pay range accordingly. Keeping with spirit of treating all City of Miami Beach employees similarly, the Administration is recommending effective with the first full pay period in October 2014, increasing the minimum and maximum of the salary ranges for all pay grades in the "Others" salary group and granting an across the board cost of living adjustment of up to three percent for any employee in the "Others" salary group whose base salary does not exceed the maximum of the pay range for the comparable job title as recommended in the 2009 Condrey Classification and Compensation Study "Pay Scale B", and subsequently amended by seven percent in August 2013, by the consultant. In addition, two new positions in the "Others" salary group have been created since the last update to the Classified Employees Salary Ordinance for "Others" in April 2012 and the inclusion of these positions are being reflected in the ro osed amendment to the ordinance. Advisory Board Recommendation: I N/A Financial Information; Source of Amount Funds: 1 FY2012/2013 $0 Cost of three percent salary COLA for qualifying "Others" employees D 2 FY2013/2014 $0 3 FY2014/2015 $30,000 OBPI Total $30,000 Cit Clerk's Office Le islative Trackin : Sylvia Crespo-Tabak, Human Resources Director Department Director Assistant City Manager City Manager lD MIAMI BEACH ,., . 607 AGENDA ITEM ____,_,R:;_;;S:;...._L_ DATE fl-//-/3 ~ MIAMI BEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov TO: FROM: DATE: SUBJECT: COMMISSION MEMORANDUM Mayor Matti Herrera Bower and Members Zf ~ity Commission City Manager Jimmy L. Morales p / P-- September 11,2013 First Reading AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AMENDING ORDINANCE NO. 789, THE CLASSIFIED EMPLOYEES SALARY ORDINANCE OF THE CITY OF MIAMI BEACH, FLORIDA, AS FOLLOWS: PROVIDING FOR THE CLASSIFICATIONS IN GROUP VI, NOT REPRESENTED BY A COLLECTIVE BARGAINING UNIT AND COMMONLY REFERRED TO AS "OTHERS"; AMENDING ALL OF THE PAY GRADES BY ABOLISHING PAY GRADE 1 AND PAY GRADE 2; ELIMINATING THE ANNUALIZED SALARY FOR EACH PAY GRADE AND PROVIDING FOR THE BIWEEKLY PAY FOR EACH PAY GRADE; ESTABLISHING THE CLASSIFICATIONS OF FIRE INSPECTOR I AND SEASONAL RECREATION AIDE; AND EFFECTIVE THE FIRST FULL PAY PERIOD ENDING IN OCTOBER 2014, INCREASING THE MINIMUM AND THE MAXIMUM OF EACH PAY GRADE, BY THREE PERCENT (3%); AND GRANTING AN ACROSS THE BOARD COST OF LIVING ADJUSTMENT OF UP TO THREE PERCENT (3%) FOR ANY OTHERS EMPLOYEE WHOSE BASE SALARY DOES NOT EXCEED THE MAXIMUM OF THE PAY RANGE FOR THE COMPARABLE JOB TITLE AS RECOMMENDED BY THE 2009 CONDREY CLASSIFICATION AND COMPENSATION STUDY "PAY SCALE B" AND SUBSEQUENTLY AMENDED BY SEVEN PERCENT 7% IN AUGUST 2013 BY THE CONSULTANT; REPEALING ALL ORDINANCES IN CONFLICT; PROVIDING FOR SEVERABILITY, AN EFFECTIVE DATE AND CODIFICATION. RECOMMENDATION The Administration recommends the City Commission approve the ordinance and set a second reading public hearing for September 30, 2013. BACKGROUND The City of Miami Beach has the following five {5) classified employee groups that are represented by bargaining units: • Group I -Represented by the American Federation of State, County and Municipal Employees (AFSCME) Local1554; • Group II -Represented by the Fraternal Order of Police (FOP) William Nichols Lodge No.8; 608 City Commission Memorandum September 11, 2013 Others Classified Salary Ordinance 181 Reading Page 2 of4 • Group Ill -Represented by the International Association of Firefighters (IAFF) Local 1510; • Group IV -Represented by the Communications Workers of America (CWA) Local 3178;and • Group V -Represented by the Government Supervisors Association of Florida (GSAF), OPEIU, Local100. In addition, the City has one classified employee group, Group VI, comprising all other classifications in the classified service not covered by a bargaining unit. This group is commonly referred to in the City of Miami Beach as "Others". Further, there is a seventh salary group comprised of at-will employees commonly referred to as Unclassified employees. RECOMMENDATION The Administration recommends that the City Commission approve the Ordinance on first reading and set a second reading and public hearing for September 30, 2013. BACKGROUND The City of Miami Beach currently has 23 employees whose classifications are in the "Others" salary group. The City has reached agreements amending the prior three-year labor agreements with three of the five bargaining units in the City. They include the Communications Workers of America, (CWA), Local 3178; the International Association of Fire Fighters, (IAFF), Local 151 0; and the Fraternal Order of Police, (FOP), William Nichols Lodge No. 8. The successor three-year agreements for CWA and IAFF were approved by the corresponding bargaining unit members and ratified by the City Commission. In addition, the Administration is presenting an item to the City Commission on September 11, 2013, amending the FOP collective bargaining agreement that was ratified on July 19, 2013. On July 18, 2013, the City and the Government Supervisors Association of Florida, OPEIU, Local100 (GSAF), had reached a tentative three-year labor agreement. GSAF held a ratification vote amongst their membership on August 1, 2013; however, the results reflected that the majority of the membership voted against the proposed labor agreement. Therefore, on August 15, 2013, GSAF was advised in writing that the City would seek to declare an impasse. At the time of this writing, the City and the American Federation of State, County and Municipal Employees, (AFSCME), Local 1554 continue to negotiate for a successor collective bargaining agreement that expired on April 30, 2013. An across the board cost of living adjustment (COLA) of three percent was negotiated with CWA, GSAF, FOP and IAFF (GSAF membership did not ratify the proposed agreement) effective with the first full pay period in October 2014. Correspondingly, the minimum and maximum of each pay range for each Classified position represented by CWA, FOP and IAFF will increase effective the first full pay period ending in October 2014. Since October 2009, there have been no merit increases for any Unclassified or "Others" employees and one three percent COLA in April 2012, for only those Unclassified employees whose salary was below the maximum of the pay range for their classification (Note: the minimum and maximum of the pay ranges were increased for all 609 -------------------------------------- City Commission Memorandum September 11, 2013 Others Classified Salary Ordinance 1st Reading Page 3 of4 salary groups except for the Unclassified and the unrepresented Classified employees ("Others") in April 2012). Furthermore, since FY2007/2008 the management team (senior level and executive employees) has only received one (1) merit adjustment. In addition, employees in the Unclassified salary group and the "Others" salary group who participate in the Miami Beach Employees' Retirement Plan (MBERP) began contributing an additional two percent (2%) of their pensionable salary towards their pension effective January 18, 2010, thus reducing the City's portion of the Annual Required Contribution (ARC). In 2008, the Administration entered into a consultant contract with Condrey and Associates to perform a citywide job classification and compensation study in order to update the City's current classification system and establish an appropriate, adequate and fair classification and compensation system for all employees. The purpose of a job classification and compensation study was to examine an organization's current job classification schedule, and appropriately update all job classifications to ensure internal equity and external competitiveness. Condrey & Associates, in conjunction with a professor/researcher from the University of Miami, also conducted a best practices/benefits survey to seek data about what other jurisdictions are doing to control personnel/benefits related costs. 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 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 and/or 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. In August 2009, the City received the final Condrey and Associates Classification and Compensation Study for the City of Miami Beach. The report included an analysis of the salary and benefits data, along with the jurisdictions that responded to the salary survey and the benefits survey. In August 2013, the consultant provided the City with a letter (Attachment 1 ), advising that the minimum and the maximum salary scales recommended in the study, should be adjusted by seven percent (7%}. It has been the City's past practice to provide COLA adjustments to the "Others" employees and Unclassified employees consistent with those negotiated for the Classified employees covered by collective bargaining agreements. Therefore, the Administration recommends effective with the first full pay period ending in October 2014, increasing the minimum and maximum of the "Others" pay grades by three percent and implementing up to a three percent COLA for employees in the "Others" salary group whose salary does not exceed the maximum of the pay range for the comparable job title recommended in the 2009 Condrey Classification and Compensation Study and subsequently adjusted by seven percent in August 2013 by the consultant. In addition, no employee in the "Others" salary group who separated employment from the City prior to the date of implementation of the proposed COLA, will be eligible for this COLA increase. 610 City Commission Memorandum September 11, 2013 Others Classified Salary Ordinance 1st Reading Page 4 of 4 If approved, the proposed COLA represents only a six percent (6%} adjustment to the "Others" salary ranges in over six years. The City estimates an impact of approximately $30,000 to the City's FY2014/2015 operating budget attributed to the "Others" employees who will be eligible to receive up to a three percent COLA effective with the first full pay period in October 2014. This estimate is based on current data and does not take into account future turnover rates. The anticipated impacts of the 2009 Condrey Classification and Compensation recommendations and subsequently amended by seven percent (7%) in August 2013 by the consultant is provided in Attachment 2. RECOMMENDATION The Administration recommends approving the COLA of up to three percent (3%), effective the first full pay period ending October 2014 for all "Others" employees whose salary does not exceed the maximum of the pay range as recommended in the 2009 Condrey Classification and Compensation Study and subsequently adjusted by seven percent in August 2013 by the consultant. This adjustment will provide additional incentives and competitiveness to attract and retain new and existing employees. In addition, two new positions in the "Others" salary group have been created since the last update to the Classified Employees Salary Ordinance for "Others" in April 2012 and the inclusion of these positions are being reflected in the proposed amendment to the ordinance. The Administration also recommends amending the minimum and the maximum salary ranges by eliminating the annualized salaries and replacing them with the biweekly amounts to reflect a consistent representation of how employees are currently compensated. The attached ordinance will provide conformity for any such actions that have already taken place. The Administration recommends the City Commission approve the ordinance of first reading and set the second reading public hearing for September 30, 2013. JLM/KGB/SC-T/CMG T:\AGENDA\2013\September 11\0thers Salary Ordinance Memo 1st Reading.docx 611 ATTACHMENT 1 CONDREY & ASSOCIATES, INC. Ms. Carla Maglio Gomez Assistant Director Department of Human Resources City of Miami Beach 1700 Convention Center Drive Miami Beach, Florida 33139 Dear Ms. Gomez: A Human Resources Consulting Company August 21,2013 As we discussed, I am happy to provide information concerning updating the salary scales presented in our August 2009 report. In order to bring these scales to current compensation levels, we recommend that they be increased by 7%. This 7% adjustment is based on the approximate cumulative increase in the Employment Cost Index since 2009. I hope this information is helpful to you. Please do not hesitate to contact me if I may provide further information. 706.548.8938 •... , ' ·.· i!Ui 0586.816.4067 !·'U Sincerely, Stephen E. Condrey, Ph.D. President ; 11' • Athens, GA 30604-7907 WVV\111. condrey-consulting. com 612 en ~ w CMB Grade o610 o611 o611 o610 o610 o610 o611 o611 o610 o614 0614 0614 o610 o614 o614 o614 o614 ATTACHMENT 2 OTHERS CLASSIFICATIONS CONDREY RECOMMENDED RANGES UPDATED AUGUST 2013 CMB CMB Condrey: Condrey: Recommend Minimum Maximum Class Title Department Recommen ed Minimum Adjusted b~ Adiusted bv ded Grade I (Adiusted bv 3% 3% 7%) HUMAN RES TECH II 011-0370 Human Resources 44,208.58 $ 71,399.50 14 46,687.80 FIRE INSPECTOR I 011-1230 Fire Prevention 48,037.08 $ 77,584.87 12 42,296.85 FIRE INSPECTOR I 011-1230 Fire Prevention 48,037.08 $ 77,584.87 12 42,296.85 HUMAN RES TECH II 011-0370 Risk-Benefits 44,208.58 $ 71,399.50 14 46,687.80 HUMAN RES TECH II 011-0370 Human Resources 44,208.58 $ 71,399.50 14 46,687.80 HUMAN RES TECH II 540-1790 Human Resources 44,208.58 $ 71,399.50 14 46,687.80 FIRE INSPECTOR I 011-1230 Fire Prevention 48,037.08 $ 77,584.87 14 46,687.80 FIRE INSPECTOR I 011-1230 Fire Prevention 48,037.08 $ 77,584.87 14 46,687.80 HUMAN RES TECH II 011-0370 Human Resources 44,208.58 $ 71,399.50 16 51,534.60 SR ELECTRICAL INSP 011-1510 Building Serv-Building 61,631.96 $ 99,540.19 14 46,687.80 SR ELEVATOR INSP 011-1510 Building Serv-Building 61,631.96 $ 99,540.19 18 56,884.56 SR MECHANICAL INSP 011-1510 Building Serv-Building 61,631.96 $ 99,540.19 16 51,534.60 HUMAN RES TECH II 540-1791 Risk -Benefits 44,208.58 $ 71,399.50 14 46,687.80 SR ELECTRICAL INSP 011-1510 Building Serv-Building 61,631.96 $ 99,540.19 15 49,051.38 SR ELEVATOR INSP 011-1510 Building Serv-Building 61,631.96 $ 99,540.19 16 51,534.60 SR PLUMBING INSP 011-1510 Building Serv-Building 61,631.96 $ 99,540.19 14 46,687.80 SR MECHANICAL INSP 011-1510 Building Serv-Building 61,631.96 $ 99,540.19 16 51,534.60 Condrey: Recommended Maximum {Adjusted b~ 7%} $ 71,041.02 $ 64,359.65 $ 64,359.65 $ 71,041.02 $ 71,041.02 $ 71,041.02 $ 71,041.02 $ 71,041.02 $ 78,416.00 $ 71,041.02 $ 86,556.58 $ 78,416.00 $ 71,041.02 $ 74,637.48 $ 78,416.00 $ 71,041.02 $ 78,416.00 ORDINANCE TO BE SUBMITTED 614