R5R - Of the City of Miami Beach,

Ordinances - R5 R

COMMISSION MEMORANDUM

10:25 a.m. Second Reading Public Hearing

RECOMMENDATION

The Administration recommends the adoption of the proposed Ordinance to codify current administrative policies and practices and deleting or revising outdated provisions concerning pay for the Classified Service, and providing that future changes to the pay plan be effectuated by the Commission through resolution rather than through ordinance.

BACKGROUND/HISTORY

Pursuant to the City’s Civil Service System, employment positions in the City are generally divided into the Classified or Unclassified Service. Ordinance 789, first enacted on December 18, 1946, with the stated purpose of creating an orderly means of compensation, established a Compensation Plan, comprised of positions and an associated salary range for each position within the Classified Service of the City. Each Commission-approved change to the Ordinance over the years was made independently and was irregularly codified.

Historically, the majority of positions within the Classified Service of the City have been unionized and for whom pay has been collectively bargained.

Presently, the Classified Service is comprised of, in part, the positions within the bargaining unit represented by the Fraternal Order of Police William Nichols Lodge No. 8 (FOP), the bargaining unit represented by the International Association of Firefighters (IAFF), and the bargaining unit represented by the Government Supervisors Association of Florida/OPEIU Local 100 (GSAF). As a result of the decertification of the American Federation of State, County, and Municipal Employees, Local 1554 (AFSCME) and the Communication Workers of America, Local 3178 (CWA), the positions formerly comprising the unit represented by these unions are now classified as “Classified Service - Other". The positions in “Classified Service - Other” form the remainder of the Classified Service.

Since terms and conditions of employment, and in particular pay, for unionized positions are collectively bargained, the pay ranges corresponding to the positions within each bargaining unit

are adjusted through the ratification of a multi-year contract. As a result, an ordinance amending Ordinance 789 to implement the bargained for across the board pay increase or changes is perfunctory.

Ordinance 789 was last amended on December 11, 2024, by the adoption of Ordinance 2024- 4681 which Ordinance raised the base pay for positions in the FOP bargaining unit to reflect across-the-board pay increases of 3% for each of the three years covered by the agreement ratified by Resolution 2024-33400 (November 20, 2024), and by the adoption of Ordinance 2024- 4662 on October 30, 2024 which Ordinance raised the base pay for positions in the IAFF bargaining unit to reflect across-the-board pay increases of 3% for each of the three years covered by the agreement ratified by Resolution 2024-33349 (November 20, 2024), and by the adoption of Ordinance 2024-4680 on December 11, 2024 which Ordinance raised the base pay for positions in the GSAF bargaining unit to reflect across-the-board pay increases of 3% for each of the three years covered by the agreement ratified by Resolution 2024-33399 (November 20, 2024).

ANALYSIS

The City must currently change the pay plan, including for cost-of-living increases, by ordinance, requiring two readings and strike-throughs to every pay grade and for every change to the Compensation Plan since the prior ordinance.

The Pay Plan refers to the grade assigned to each position within the Classified Service and the associated minimum and maximum pay range. The Classification Plan refers to the inventory of job positions within the Classified Service and the associated position grade. Together, the Classification Plan and Pay Plan comprise the City‘s Compensation Plan. The City Manager may maintain and amend the Classification Plan while authority to amend the Pay Plan rests with the Commission.

In keeping with the legal notice requirements for the adoption of ordinances, in the past, every change to the Pay Plan approved by the Commission involved the use of strikethroughs and underlines to reflect the text amendments. At times, this has caused the proposed ordinance to take up several pages to incorporate the entire Compensation Plan for the mere purpose of adjusting the maximum salary in each range to reflect the across-the-board pay increase granted by the Commission. Since the implementation of enterprise system software, currently MUNIS, systematic changes can be easily and efficiently implemented and up to the minute information concerning positions and pay is readily available.

This updated Ordinance proposes that future changes to the Pay Plan be made by resolution of the commission eliminating the need for multiple readings and providing for greater efficiency in the administration of pay for the City’s classified employees.

Pay Plan Amendments by Resolution of the Commission for Unionized Positions

Furthermore, as mentioned in the prior section of this Commission Memorandum, pay is a term of employment and a mandatory subject of bargaining. The City generally negotiates agreements with a term of three years. That is, pay adjustments are determined for each bargaining unit every three years. Every time the City reaches agreement with each union regarding pay for positions within the unit, the City is making a legal commitment to budget sufficient funds to cover pay for each fiscal year covered by the agreement in the manner agreed to by the parties. The City ratifies each agreement by resolution of the Commission. Not only does each resolution implicitly adjust pay for the covered positions but Florida labor law suspends the application or enforcement of any local law that is in conflict with a duly ratified agreement. That is, to the extent the Pay

Plan as established by Ordinance 789 is in conflict with any ratified agreement, the application of the Pay Plan is suspended until it is amended. The Ordinance proposes that each resolution passed by the Commission ratifying a collective bargaining agreement simultaneously amend the Pay Plan for the covered positions.

Pay Plan Amendments by Resolution of the Commission for Classified Service-Others

Generally, for morale, and to maintain pay parity for employees in unionized and non-unionized positions that are not first responders, the Administration usually recommends cost of living pay increases for positions classified “Classified Service - Others" consistent with cost of living pay increases bargained for unionized positions.

The Ordinance proposes that future changes to the Pay Plan for positions classified “Classified Service - Others" be made by resolution of the commission eliminating the need for multiple readings and providing for greater efficiency in the administration of pay for the City’s classified employees.

Codification of Current Administrative Regulations and Practices

The balance of powers between the Commission and the City Manager remains the same. The City Manager’s powers focus primarily on his ability to affect individual salaries for operational efficiency, within the framework of the Personnel Rules for Classified Service, and circumscribed by the Commission’s power to affect overall salaries as a function of the Commission’s authority adopt a budget and to ratify a bargaining agreement under Florida’s labor law. The enumerated powers of the City Manager reflect current practices including implementing bargaining contract provisions and affecting pay for classified positions in “Classified Service – Others”, which enables the Administration to meet current market demands to hire and retain a quality workforce.

FISCAL IMPACT STATEMENT

The adoption of this ordinance has no financial impact.

Does this Ordinance require a Business Impact Estimate? Yes (FOR ORDINANCES ONLY)

If applicable, the Business Impact Estimate (BIE) was published on: 6/6/2025 See BIE at: https://www.miamibeachfl.gov/city-hall/city-clerk/meeting-notices/

FINANCIAL INFORMATION

CONCLUSION

The Administration recommends the adoption of the Ordinance, which proposes to codify an updated Classified Salary Ordinance and provide for future pay plan adjustments through resolution rather than ordinance, on first reading and set the Ordinance for second reading on June 25, 2025. The City Administration will propose a companion resolution for consideration at

the June 25, 2025 Commission Meeting which would effectuate cost of living adjustments for classified employees in the “Others” category.

Applicable Area

Citywide

Was this Agenda Item initially requested by a lobbyist which, as defined in Code Sec. 2-481, includes a principal engaged in lobbying? No

If so, specify the name of lobbyist(s) and principal(s):

Department

Human Resources

Sponsor(s)

Commissioner Joseph Magazine

Co-sponsor(s)

Condensed Title

10:25 a.m. 2nd Rdg, Amend 789, Classified Employees' Salary Ordinance. (Magazine) HR

Previous Action (For City Clerk Use Only)

First Reading Public Hearing on 5/21/2025 - R5 P