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R5M-Fire And Police Salary Ordinance -Weithorn-COMMISSION ITEM SUMMARY Condensed Title: An Ordinance Amending Ordinance No. 789, The Classified Employees Salary Ordinance Of the City of Miami Beach Effective the First Pay Period In October 2014, Providing For A Three Percent Cost Of Living Adjustment (COLA) For All Classifications Covered By The Fraternal Order of Police (FOP) and the International Association of Fire Fighters (IAFF) And Adjusting The Minimum And Maximum Of Each Pay Range Accordingly and Effective April 1, 2015, Adding An Additional Pay Step (Step I) to the Classifications of Police Officer, Sergeant, Lieutenant and Firefighter I. Key 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 extending the minimum and maximum of the salary ranges. 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. The labor agreements between the City and the CWA and the City and the IAFF have been ratified by the City Commission and the respective bargaining units. The Administration is presenting an item at the September 11, 2013 City Commission meeting recommending for the City Commission to adopt a resolution amending the three-year labor agreement covering the period of October 1, 2012 through September 30, 2015 between the City and the FOP that was ratified on July 19, 2013. Included in the individual agreements, the City agreed to provide an across the board cost of living adjustment (COLA) of three percent for all bargaining unit employees effective the first pay period ending in October 2014, and correspondingly adjusting the minimum and maximum of each pay range accordingly. In addition, the City has agreed with the FOP that effective April 1, 2015, adding an additional pay step to the maximum of the pay ranges for the classifications of Police Officer, Sergeant of Police and Lieutenant of Police. In lieu of the additional pay step, the FOP has agreed to a number of concessions to help offset the cost. The City and the IAFF agreed that effective April 1, 2015, adding an additional pay step to the maximum of the pay range for the Firefighter I classification. The IAFF has agreed to reduce holiday pay from 9 to 6 hours for all 24-hour shift personnel to help offset the cost of the additional pay step. Advisory Board Recommendation: IN/A Financial Information: Source of Amount Funds: 1 FY2012/2013 $0 2 FY2013/2014 $0 FY2014/2015 Cost of three percent salary COLA for FOP =$811 ,000 and IAFF = $588,000 $1,429,750 and implementation of an additional Step I to the classifications of Police Officer, Sergeant and Lieutenant = $1,013,000 annualized impact (Year 1 impact $490,000}, offset by annualized concessions agreed to by the FOP of 3 ($1,003,162) (Year 1 Savings= ($488,000) and implementation of an additional Step I to the Firefighter I classification = $319,500 annualized impact, (year 1 impact $91 ,000), offset by a reduction of holiday pay for 24- hour shift personnel from 9 to 6 hours representing an annualized savings of ($207,500) (Year 1 savings of ($62,250). OBPI Total $1,429,750 Assistant City Manager City Manager MIAMI BEACH 615 AGENDA 1 TEM ----"::R:'-s--7-;--f.l/-:-;-_ DATE 'f-//-13 I m MIAMI BEACH City of Miomi Beoch, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gav COMMISSION MEMORANDUM TO: Mayor Matti Herrera Bower and Members of the City Commission FROM' Jimmy L. Morales, City Manager ,-%A I fr-- DATE: September 11, 2013 First Reading SUBJECT: 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: IN ACCORDANCE WITH THE NEGOTIATED COLLECTIVE BARGAINING AGREEMENTS, PROVIDING FOR THE CLASSIFICATIONS IN GROUP II, REPRESENTED BY THE FRATERNAL ORDER OF POLICE (FOP) WILLIAM NICHOLS LODGE NO. 8., AND FOR THE CLASSIFICATIONS IN GROUP Ill, REPRESENTED BY THE INTERNATIONAL ASSOCIATION OF FIRE FIGHTERS, (IAFF), LOCAL 1510;, EFFECTIVE THE FIRST PAY PERIOD ENDING IN OCTOBER OF 2014, THERE SHALL BE AN ACROSS THE BOARD COST-OF-LIVING ADJUSTMENT (COLA) OF THREE PERCENT (3%), AND THE MINIMUM AND MAXIMUM OF EACH PAY RANGE WILL ALSO BE INCREASED BY THREE PERCENT (3%); EFFECTIVE APRIL 1, 2015, ADDING AN ADDITIONAL STEP (I) TO THE CLASSIFICATIONS OF POLICE OFFICER, SERGEANT OF POLICE, LIEUTENANT OF POLICE AND FIREFIGHTER I, 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) Local 1554; • Group II -Represented by the Fraternal Order of Police (FOP) William Nichols Lodge No.8; • 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, Local 100. 616 City Commission Memorandum September 11, 2013 FOP and IAFF Classified Salary Ordinance 1'1 Reading Page 2 of 4 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". There is a seventh salary group comprised of at-will employees commonly referred to as Unclassified. ANALYSIS On July 19, 2013, the City Commission ratified a three-year labor agreement with each, the IAFF and the FOP, covering the period of October 1, 2012 through September 30, 2015. In addition, the Administration will be presenting a separate item before the City Commission during the September 11, 2013 City Commission meeting, requesting approval of a resolution to amend the ratified three-year labor agreement between the City and the FOP for the period of October 1, 2012 through September 30, 2015. Included in both of the IAFF and FOP collective bargaining agreements are two provisions that require amendments to the Classified Salary Ordinance (Ordinance No. 789). The first amendment calls for the implementation of a three percent across the board cost of living adjustment (COLA), effective the first full pay period ending October of 2014, for all bargaining unit employees covered by FOP and IAFF, and providing for an increase to the minimum and maximum of each pay range correspondingly by three percent. The three percent (3%) COLA, effective with the first full pay period in October 2014, for members covered by FOP represents an impact of approximately $811,000, members covered by IAFF represents an impact of approximately $558,000, for a total estimated impact of $1,369,000 to the City's FY 2014/15 operating budget. The estimated figures do not take into consideration current turnover rates or vacant positions; however, the Administration anticipates the impact of such to be minimal. Any of the aforementioned classified employees who separate from employment with the City prior to the date of implementation of the COLA, effective the first full pay period ending in October of 2014, will not be eligible to receive the COLA increase. Pursuant to the terms of the collective bargaining agreements with the FOP and the IAFF, the City has also agreed, effective April 1, 2015, there shall be one additional pay step {Step 1), added to the classifications of Police Officer, Sergeant of Police, Lieutenant of Police and Firefighter I. The newly created pay step (Step 1), effective April 1, 2015, will increase the maximum of the aforementioned classifications by five percent (5%). The minimum pay range shall remain as is and there shall be no immediate pay increase for any employees. For employees whose classification is covered by the FOP whose salary is at the maximum of the pay range (Step H) as of April 1, 2014, will move into the new step (Step I) on April 1, 2015, with their anniversary date reflecting April 1, for the sole purpose of their annual performance review. Thereafter, any employee in the aforementioned classifications covered by the FOP whose salary is at the maximum step of the range, (Step H), shall be eligible to proceed to Step I upon reaching his or her next anniversary date. 617 City Commission Memorandum September 11, 2013 FOP and IAFF Classified Salary Ordinance 1., Reading Page 3 of 4 The estimated impact for impacted employees covered by the FOP in FY 2014/15 is $489,882 and the annualized impact for FY 2015/16 is $1,003,162. The implementation of the additional steps was subject to the FOP agreeing to concessions that would result in an approximate equivalent, recurring savings in order to offset the estimated annualized impact $1,003,162. The concessions agreed to by the FOP to offset the additional pay step added to the maximum of the ranges for the classifications of Police Officer, Sergeant of Police and Lieutenant of Police include: • Elimination of State Commission for Florida Law Enforcement (SCFLE) accreditation pay effective October 1, 2014 for all members. The estimate savings is ($95,680) in FY 2014/15 and each year thereafter unless the benefit is renegotiated. • Reduction of Quality of Life Incentive Pay from $67.00 biweekly to $26.00 biweekly effective October 1, 2014. The estimated annualized savings is ($392,288), in FY 2014/15 and each year thereafter unless the benefit is renegotiated. • Reduction of Commission on Accreditation of Law Enforcement Agencies (CALEA) pay from $40.00 to $20.00 effective September 30, 2015. The estimated annualized savings is ($191,360) and will be realized in FY 2015/16 and each year thereafter unless the benefit is renegotiated. • Reduction of Shift Differential Pay by $.25 per hour (Midnight Shift reduced from $1.00 per hour to $. 75 per hour and Afternoon Shift reduced from $. 75 per hour to $.50 per hour effective September 30, 2015. The estimated annualized savings is ($112,994) and will be realized in FY 2015/16 and each year thereafter unless the benefit is renegotiated. • Court Time Compensation during an employee's off duty hours reduced from a four(4) hours minimum to three and one half (3.5) hours minimum effective September 30, 2015. The estimated annualized savings is ($210,840) and will be realized in FY 2015/16 and each year thereafter unless the benefit is renegotiated. * It is important to note that the above referenced concessions will remain as status quo upon the expiration of the FOP collective bargaining agreement on September 30, 2015. Therefore, the City will continue to recognize recurring savings based on these concessions unless the City and FOP collectively bargain changes to these concessions in a successor agreement. Effective April 1, 2015, any Firefighter I whose salary is at the maximum step of the pay range, (Step H), shall be eligible to proceed to Step I upon reaching his or her anniversary date following the effective date of this provision. The estimated impact for the IAFF in FY 2014/15 is $91,000. The annualized impact for FY 2015/16 is approximately $319,505. The implementation of the additional step was subject to the IAFF agreeing to recurring concessions that would help to offset the impact of the additional step. To help offset the increase in the Firefighter I classification salary range, effective April 1, 2015, holiday pay for all 24-hour personnel shall be reduced from nine to six hours. The estimated impact for FY 2014/15 will yield a savings of approximately ($62,242), with an estimated annualized savings of ($207,500). 618 City Commission Memorandum September 11, 2013 FOP and IAFF Classified Salary Ordinance 151 Reading Page 4 of 4 CONCLUSION Based upon the agreed upon terms between the City and the FOP and the City and the IAFF, the Administration recommends amending Ordinance No. 789, the Classified Employees Salary Ordinance of the City of Miami Beach, Florida, by approving a three percent COLA, effective the first pay period ending October 2014, and correspondingly increasing the minimum and maximum of each pay range for each classification covered by the FOP and IAFF by three percent In addition, the Administration recommends, effective April 1, 2015, adding an additional pay step (Step I), to the classifications of Police Officer, Sergeant of Police, Lieutenant of Police and Firefighter I. The Administration recommends approving the proposed ordinance amendments and setting a second reading, public hearing for the September 30, 2013, City Commission meeting. JLM/KGB/SC-T/CMG T:\AGENDA\2013\September 11\FOP IAFF Salary Ordinance Memo 1st Reading.docx 619 en N 0 CMB Grade o023 o024 o024 o407 o410 o412 o412 o416 o419 o421 o424 o426 --· Class Title Police Chief Assistant City Manager Chief Financial Officer Receptionist Paralegal Legal Secretary Legal Secretary OFF MGR (CITY ATIY) Sr. Assistant City Attorney First Assistant City Attorney Chief Deputy City Attorney City Attorney ---UNCLASSIFIED CLASSIFICATIONS CONDREY RECOMMENDED RANGES UPDATED AUGUST 2013 CMB Minimum Department Adjusted by 3% Police Chief Office 34,457.02 City Manager 34,457.02 Finance/ Admin 34,457.02 City Attorney 34,457.02 City Attorney 34,457.02 City Attorney 34,457.02 City Attorney 34,457.02 City Attorney 34,457.02 City Attorney 34,457.02 City Attorney 34,457.02 City Attorney 34,457.02 City Attorney 34,457.02 ----·----CMB Condrey Condrey Maximum Recommended Recommended Adiusted bv Minimum Grade 3% {Adjusted by 7%} 55,651.79 27/28 125,359.74 55,651.79 29 145,378.87 55,651.79 29 145,378.87 55,651.79 9 36,472.44 55,651.79 14 46,687.80 55,651.79 17 54,143.54 55,651.79 16 51,534.60 55,651.79 18 56,884.56 55,651.79 24 97,930.83 55,651.79 26 108,097.32 55,651.79 29 145,378.87 55,651.79 UNC 195,810.00 Unclassified Condrey plus 7 percentC:\Users\HUMAGomC\AppData\Locai\Microsoft\Windows\Temporary Internet Files\Content.Outlook\SWIKCSV7\Unclassified Condrey plus 7 percent Condre'l Recommended Maximum (Adjusted by 7%} ···---217,315.03 239,875.14 239,875.14 55,497.13 71,041.02 82,385.81 78,416.00 86,556.58 161,585.87 178,360.57 239,875.14 281,410.00 REVISED 9/4/2013;8 ORDINANCE TO BE SUBMITTED 621 THIS PAGE INTENTIONALLY LEFT BLANK 622