R7K - Establishing a Pay Plan for The

Resolutions - R7 K

COMMISSION MEMORANDUM

RECOMMENDATION

Administration recommends approval of the Resolution.

BACKGROUND/HISTORY

Employment positions at the city are categorized as being part of either the Classified or Unclassified Service. In addition, certain positions within the Classified Service are part of bargaining units represented by an exclusive bargaining agent. The City recognizes the Fraternal Order of Police (”FOP”) as the exclusive agent for certain classified ranks in the Police Department; the International Association of Fire Fighters (”IAFF”) as the exclusive agent for certain classified ranks in the Fire Department; and the Government Supervisors Association of Florida (”GSAF”) for certain other classified positions across other departments citywide. The City also recognizes the Communication Workers of America, Local 3178 (”CWA”) as the exclusive bargaining agent for employees in the bargaining unit described in the Order issued by the Florida Public Employees Relations Commission on June 6, 2025, a copy of which is attached to this Memorandum. Normally, cost-of-living (cola) adjustments to pay for bargaining unit employees are negotiated and approved by the Commission as part of the ratification of collective bargaining agreements. Historically, collective bargaining agreements are negotiated for three-year terms. The last agreement between the CWA and the City expired on September 30, 2024. Since then, bargaining with the CWA was stalled pending a favorable determination by PERC on CWA‘s recertification petition. The last cost-of-living adjustment approved by the Commission for employees represented by the CWA was three percent (3%) effective in April 2024.

ANALYSIS

The proposed resolution is made concurrent with the second reading of the Classified Employees’ Salary Ordinance. The Classified Employees’ Salary Ordinance creates a new procedure for Pay Plan amendments affecting bargaining unit employees. Prior to the adoption of the Classified Employees’ Salary Ordinance, amendments to the Pay Plan were enacted by ordinance notwithstanding the fact that the same Pay Plan amendments had been negotiated and ratified

by the Commission by resolution prior to the amendatory ordinance. The Classified Employees’ Salary Ordinance eliminates the need to amend the Pay Plan at all when the amendment affects bargaining unit positions. The Classified Employees’ Salary Ordinance provides that the Pay Plan is automatically amended when the Commission passes a resolution ratifying a collective bargaining agreement which includes adjustments to pay.

The Commission recently ratified collective bargaining agreements for a term beginning on October 1, 2024 and ending on September 30, 2027 for employees in the FOP, IAFF, and GSAF bargaining units. These contracts included cost-of-living adjustments to the pay range for positions within those units as well as to employee pay of three percent (3%) effective July 2025, three percent (3%) effective April 2026, and three percent (3%) effective April 2027. As provided in the Classified Employees’ Salary Ordinance and the proposed resolution, the Pay Plan will be adjusted to reflect these Commission-approved increases without further action by the Commission. As stated previously, the CWA and the City had not begun negotiations for a successor agreement because until June 6, 2024 CWA was not certified by PERC. As a result of the order from PERC and in anticipation of initiating successful negotiations, the City proposes through this resolution that the Pay Plan be amended to reflect a three percent (3%) increase to the salary range for positions within the CWA bargaining unit and that employee pay also be adjusted by three percent (3%), up to the new max of the range, for employees in CWA positions whose salary does not exceed the maximum as a concession, effective the first full pay period of July 2025.

FISCAL IMPACT STATEMENT

The fiscal impact of the three percent (3%) cost-of-living adjustment for employees in the CWA bargaining unit is $175,134 in fiscal year 2024-25. The cola is budgeted in each department’s salary line item in fiscal year 2024-25.

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

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

FINANCIAL INFORMATION

CONCLUSION

The Administration recommends the adoption of the Resolution which proposes an increase of three percent (3%) to the pay ranges for positions within the CWA bargaining unit as provided in Exhibit A accompanying the Resolution and also approves a cost-of-living adjustment of three percent (3%), up to the max of the range, to employees in bargaining unit positions whose salary does not exceed the maximum rate of pay, beginning in the first full pay period of July 2025.

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)

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Co-sponsor(s)

Condensed Title

Establish Pay Plan for Classified Service (CWA), Approve 3% COLA. HR

Previous Action (For City Clerk Use Only)