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Remedy for Fire Department Manager/Administration Wage CompressionCity of Dubuque City Council Meeting Action Items # 05. Copyrighted July 1, 2024 ITEM TITLE: Remedy for Fire Department Manager/Administration Wage Compression SUMMARY: City Manager recommending the approval of salary percentage increases effective July 1, 2024, in order to remedy the wage/salary compression that would exist for the management/administration ranks of Assistant Fire Chief/Division Chief/Bureau Chief, Deputy Fire Chief, and Fire Chief related to the percentage wage increases provided to union - represented Fire ranks per the CBA effective on July 1, 2024. SUGGESTED Suggested Disposition: Receive and File; Approve DISPOSITION: ATTACHMENTS: Description Type MVM Memo City Manager Memo Request for Salary Increase for Fire Mgmt Staff Memo THE CITY OF Dubuque DUB TEE1. All -America City Masterpiece on the Mississippi � pp zoo�•*o 13 zoi720zoi9 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Remedy for Fire Department Manager/Administration Wage Compression DATE: June 26, 2024 Chief Human Resources Officer Shelley Stickfort is recommending City Council approval of salary percentage increases effective July 1, 2024, in order to remedy the wage/salary compression that would exist for the management/administration ranks of Assistant Fire Chief/Division Chief/Bureau Chief, Deputy Fire Chief, and Fire Chief related to the percentage wage increases provided to union -represented Fire ranks per the CBA effective on July 1, 2024. I concur with the recommendation and respectfully request Mayor and City Council approval. v Mic ael C. Van Milligen MCVM:sv Attachment CC' Crenna Brumwell, City Attorney Cori Burbach, Assistant City Manager Shelley Stickfort, Chief Human Resources Officer Amy Scheller, Fire Chief Jenny Larson, Chief Financial Officer Connie Palm, Compensation and Classification Manager Dubuque THE CITY OF DUB Et AII•Ameriea City iece on the Mississippi Masterpiece pp z°°�.z°iZxz°13 2017*2019 TO: Mike Van Milligen, City Manager FROM: Shelley M. Stickfort, Human Resources Director DATE: June 27, 2024 RE: Remedy for Fire Department Manager/Administration Wage Compression INTRODUCTION The purpose of this memo is to recommend salary percentage increases effective July 1, 2024, in order to remedy the wage/salary compression that would exist for the management/administration ranks of Assistant Fire Chief/Division Chief/Bureau Chief, Deputy Fire Chief, and Fire Chief related to the percentage wage increases provided to union -represented Fire ranks per the CBA effective on July 1, 2024. BACKGROUND To begin to address the identified issue of wage compression occurring between Fire Department management/administration ranks and union positions, effective in January 2024 the City Council approved a 5% wage increase for those sworn personnel (supervisors/managers)' who are not represented by the Dubuque Professional Firefighters Association/Union (DPFA). The Fire Chief position received a 6% increase2. In the late fall of 2023 and early months of 2024, information was received from the Compensation and Classification vendor Carlson Dettman Consulting (CDC) that indicated gaps in wages for Fire personnel along with recommendations for percentage increases in order for the City to remain competitive for recruiting new, qualified talent and retain existing talent. This information was used for bargaining with the Dubuque Professional Firefighters Association's (DPFA) for a new collectively bargained for contract that would become effective July 1, 20243. As a result, two significant changes were bargained for and are included in the ratified DPFA contract that goes into effect The position of Assistant Fire Marshall was re -leveled to a higher classification (and compensation) level (G-36F) on the General Wage Plan and the Deputy Fire Chief position was added after January 1, 2024 and was classified and compensated at a commensurate level taking into consideration the organization/department restructuring and related increases that occurred throughout FY24. 2 The July 1, 2023 wage increase for all sworn personnel, except the Fire Chief, was a 6% increase. The Fire Chief received 5%. The additional 1 % (6% instead of 5%) provided to the Chief in January 2024 corrects the resulting disparity from the lesser percentage increase provided for on July 1, 2023. 3 The DPFA/City of Dubuque CBA effective July 1, 2024 has a duration of three (3) years or until June 30, 2027. on July 1, 2024. The first was an increased number of steps for the wage plan that includes the Fire positions represented by the DPFA, the second provided for targeted increases versus across-the-board increases to address identified gaps in competitiveness of wages at certain intervals/steps for each of the position levels on the DPFA Wage Plan. These actions over the course of the three-year (FY 25, FY26, and FY27) DPFA wage plan increases permit the City to close the identified competitive wage gaps per the CDC Classification and Compensation review and conclusions. The bargained for increases address and remedy the concerns about competitive wages for the recruitment and retention of represented (Union) fire personnel. However, the base pay difference between the top step Captain (union) level and bottom or entry step Assistant Chief/Division Chief/Bureau Chief4 (management/administration) level and all the other manager levels would experience compression again when the DPFA wage plan goes into effect on July 1, 20245. DISCUSSION To remedy the resulting compression the identified fire management/administration positions would need to receive adjusted and targeted percentage increases averaging 10% for FY25. The targeted increases would range from 5% to 12% as follows: Asst FM/EMS Asst = 5% Asst Fire Chief/Div Ch/Bureau Ch = 12.00% Dep Fire Chief = 10.25% Fire Chief = 10.25% BUDGETIMPACT The recommended changes to remedy compression that would occur on July 1, 2024 would cost approximately $97.0706.01. This number includes the approved cost of living adjustment (COLA) of 5%. Jenny Larson, Chief Financial Officer, has reviewed the data/information and concurs with the likely cost increase. Chief Financial Officer Jennifer Larson recommends funding the additional fire employee cost from the Fiscal Year 2024 General fund interest revenue which has exceeded budget by $1,306,451.00. RECOMMENDATION I respectfully request your support for the targeted percentage wage increases as identified above to proactively address wage compression from occurring on July 1, 2024 within the City of Dubuque Fire Department. 4 The assistant chief rank is also known as division chief for operations positions and will soon be bureau chief for administrative positions. The assistant chief title will phase out after the promotion occurs for the EMS bureau chief position. 5 For example, the starting wage for an assistant chief at Step ! represents $8,969 (9.26%) LESS in pay than the lower leveled captain position at its top step. 2 cc: Fire Chief Amy Scheller Chief Financial Officer Jenny Larson Compensation and Classification Manager Connie Palm