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Agenda 07/12/2022 Item #16E 1 (Pay increases of $1 per hour effective August 1, 2022 in consideration of execeptional market conditions)07/12/2022 EXECUTIVE SUMMARY Recommendation to approve pay increases of $1 per hour effective August 1, 2022, in consideration of exceptional market conditions, for employees in the County Manager's Agency, County Attorney's Office, Board Office, and for non -union EMS employees below the level of Division Director or Managing Assistant County Attorney; to approve modifications to the FY2022 Pay and Classification Plan for the County Manager's Agency; and to provide continued authorization for the creation of new classifications, modification and/or deletion of classifications, and assignment of pay ranges from the proposed Pay and Classification Plans, using the existing point -factor job evaluation system. OBJECTIVE: To maintain a current and flexible pay plan that best meets the needs of the County. CONSIDERATIONS: The County engaged Evergreen Solutions, LLC on June 1, 2021, to perform a Classification and Compensation Study for the County Manager's Agency. Evergreen Solutions completed a preliminary market analysis and their findings were presented to the Board on January 25, 2022, along with recommendation to revise the FY2022 Pay and Classification Plans for the County Manager's Agency, County Attorney's Office, and non -union EMS effective January 1, 2022; to consolidate certain pay grades and adjust the current pay ranges in the County Manager's Agency and non -union EMS plans by 10%; to adjust the current pay ranges in the County Attorney's Office by 10%; to provide adjustments to minimum and range penetration increases to address market conditions and internal equity for the County Manager's Agency, County Attorney's Office, and for non -union EMS employees. The Board unanimously approved these recommendations, and the changes were retroactively applied effective January 1, 2022. An overview of market conditions was also presented at the January 2022 meeting, however much has changed since that time. These trends continue to impact the County's ability to attract and retain talent. 1. According to the most recent State of Florida Relative Price Level Index Study for 2021, Collier County continues to be ranked as the 2nd highest cost of living County in the State, which was 6.7% above the Statewide average cost of living. 2. Median home and rental prices in Collier County are among the highest in the state, forcing large segments of middle- and working-class families to relocate out of the area or live here beyond their means. May 2022 real estate data for Collier County shows home prices up 37.1% from last year, selling for a median price of $650,000. The Bureau of Labor Statistics released an updated Consumer Price Index (CPI) on June 10, 2022. In this report, the region including Tampa - St. Petersburg - Clearwater, Florida shows All Urban Consumers experienced an 11.3% increase in the CPI from May 2021 to May 2022. Increases in our region significantly exceed the nationwide CP1 increase of 8.6% for the same period. 4. On June 13, 2022, Naples City Council approved a resolution providing City of Naples employees represented by OPEIU, Local 100, a $ I/hour increase to their base hourly wage, and a lump suirn $500 bonus to assist employees facing high food, housing, and fuel costs. On November 29, 2021, Naples City Council unanimously approved a two-year wage increase as part of their new labor contract. This contract included the following wage increases and other benefits. 0 4% raise for fiscal year 2021-22 (retroactive to Oct. 1) 0 5% raise for fiscal year 2022-23 0 Christmas bonuses of $300 annually 0 A Longevity pay annual incentive for long -tenured employees with at least 10 years of Packet Pg. 1695 07/12/2022 service, ranging from $ 1,000 to a max of $2,5 00 5. On June 28, 2022, the Collier County Sheriff received approval from the Board for a funding increase of $4,000,000 for pay plan updates intended to address the current economic impact of the sharply escalating costs of living in Collier County, and to remain competitive for recruitment and retention. The Collier County Sheriff continues to offer sign -on bonuses; the County Manager's Agency has no comparable benefit. 6. On June 7, 2022, the Lee County Board of County Commissioners approved agency -wide pay increases from 3-10% to account for inflation. 7. Increasing County Manager Agency Turnover • At the end of FY2020, turnover was 11.4%, with 239 employees of 2,098 funded positions separating service. • At the end of FY2021, County turnover increased over two percent from the previous year, to 13.5%. 289 employees of 2,147 funded positions separated in that fiscal year. • To date in FY2022, there have been 258 employees who have separated since 10/1/2021, with 20 known separations in the coming months. Should that pace continue, the County could see nearly 370 staff leave before the end of this fiscal year, which would represent a turnover of 16.9% of funded agency positions. In consideration of exceptional market conditions, staff recommends the County take immediate action and increase employee wages by $1 per hour in the County Manager's Agency, County Attorney's Office, Board Office, and for non -union EMS employees, with an annual adjustment not to exceed $2,080 per employee. Adjustments would be granted to all County Manager agency employees below the level of Division Director, pay grade 130; and County Attorney employees below the level of Managing Assistant County Attorney, pay grade 116; who are under the maximum of their respective pay ranges. For individuals whose pay rate is within $1/hour of the pay range maximum, they would be brought to the maximum. Employees under contract or who are subject to a Collective Bargaining Agreement shall continue to be paid and receive increases in accordance with the applicable contract or governing Collective Bargaining Agreement. The County Manager's Agency staff will continue to work with the other Collier constitutional officer agency representatives regarding pay plan and base wage adjustments, providing information needed to formulate possible pay recommendations specific to their organizations to bring forward at a future date for consideration. Additionally, a recommendation is being made to adjust the pay range for the title of Executive Coordinator to Commissioners. The classification was created at the direction of the Board and authorized as a discrete position for each Commissioner in March 2013; the pay range for the position has not changed since that time. In light of external market conditions, the pay range is proposed to change from $48,000 - $7 1,000/year to $52,000 - $78,000/year. Staff also recommends modifications to the annual Fiscal Year Pay and Classification Plan which are subject to retroactive ratification by the Board. This occurs three times during the fiscal year - in January, in April and in July, pursuant to Ordinance 13-40. The modifications to the County's 2022 Fiscal Year Pay & Classification Plan for the third quarter consist of the removal of two obsolete classifications and one reclassification. FISCAL IMPACT: The estimated cost of the associated adjustments to base pay is $412,344 for the remainder of FY2022. Sufficient funding exists to implement the desired compensation actions; but I Packet Pg. 1696 1 07/12/2022 budget amendments may be necessary to align the budget within the appropriate personnel service cost centers. Full implementation related to the Evergreen Study is still intended for the beginning of FY2023 forecast to cost approximately $ 10,000,000, with full details to be presented with FY2023 final budget approval. GROWTH MANAGEMENT IMPACT: There is no growth management impact associated with this Executive Summary. LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney, raises no legal issues and requires majority vote for approval. -JAK RIECOMMENDATION: Recommendation to approve pay increases effective August 1, 2022; authorizes an adjustment to the pay range for the Executive Coordinator to Commissioner classification, and the removal of two obsolete classifications and one reclassification made to the County Manager's Agency 2022 Fiscal Year Pay & Classification Plan; and if actions warrant, authorize all necessary budget amendments. PREPARIED BY: Brittney Mahon, Manager - Human Resources Attachment: 1) Exhibit I ATTACHMENT(S) 1. Exhibit 1, adds, deletes, mods to pay plan - April through June 2022 (XLSX) I Packet Pg. 1697 1 07/12/2022 COLLIER COUNTY Board of County Commissioners Item Number: 16.E.1 Doc ID: 22723 Item Summary: Recommendation to approve pay increases of $1 per hour effective August 1, 2022, in consideration of exceptional market conditions, for employees in the County Manager's Agency, County Attorney's Office, Board Office, and for non -union EMS employees below the level of Division Director or Managing Assistant County Attorney; to approve modifications to the FY2022 Pay and Classification Plan for the County Manager's Agency; and to provide continued authorization for the creation of new classifications, modification and/or deletion of classifications, and assignment of pay ranges from the proposed Pay and Classification Plans, using the existing point -factor job evaluation system. Meeting Date: 07/12/2022 Prepared by: Title: Human Resources Generalist — Human Resources Name: Brittney Mahon 07/06/2022 3:00 PM Submitted by: Title: Division Director - Human Resources — Human Resources Name: Amy Lyberg 07/06/2022 3:00 PM Approved By: Review: Human Resources Amy Lyberg Director Review Completed 07/06/2022 3:13 PM County Attorney's Office Jeffrey A. Klatzkow Level 2 Attorney Review Completed 07/06/2022 3:15 PM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 07/06/2022 3:23 PM Office of Management and Budget Debra Windsor Level 3 OMB Gatekeeper Review Completed 07/06/2022 3:36 PM Office of Management and Budget County Managers Office Board of County Commissioners Susan Usher Additional Reviewer Amy Patterson Level 4 County Manager Review Geoffrey Willig Meeting Pending Completed 07/0612022 3:48 PM Completed 07/06/2022 3:59 PM 07/12/2022 9:00 AM I Packet Pg. 1698 1 LH PJS ZZA=l : CZLZZ) ZZOZ ounr LIBnoit4l I!jdV - ueld Aed ol spow Isajolop 'sppe 'L I!q!t4xg :ju9wt43ejjV 0 M -0 CD CO 6.0 >1 = -0 co co co C)- c 0 E co co 0 C)- 0- E E T) E 2 2 (n E (n E U) U) 0 a) X u 0� a) -0 0 -0 0 04 04 CD 04 E 0 CD CD CD C, CD CL 00 E = o 0 o 0 o 0 E pl-i Cli cc� 0 00 rl- 04 r CN CD CN LO r: L) L) C) co C) co C) m c 0 .2 LE LL LL 0 (D z LL z 0 C) Z) U) z 0 C) 0 w z U) z U) 2 w U) 0 CY) CD to T- Ch a. a.