Agenda Item 9B
December 8, 2015
Introduction
MEMORANDUM
December 4,2015
TO:
FROM:
SUBJECT:
County Council
Robert
H. Drummer, Senior Legislative
Attorney~
Introduction:
Bill 51-15, Non-merit employees - Salary Schedule - Established
Bill 51-15, Non-merit employees Salary Schedule - Established, sponsored by Lead
Sponsor Councilmember Leventhal and Co-sponsors Councilmembers EIrich and Rice, is
scheduled to be introduced on December 8,2015. A public hearing is tentatively scheduled for
January 12,2016 at 1:30 p.m.
Bill 51-15 would establish a salary schedule for heads ofdepartments and principal offices,
and other non-merit employees. The Bill would require the Executive to propose a salary schedule
for heads of departments and principal offices, and other non-merit employees in the Executive
Branch for approval by the Council as part of the annual operating budget for the County
government. The Bill would also require the Council to establish a salary schedule for non-merit
employees in the Legislative Branch as part of the operating budget. Non-merit employees would
be paid a salary within the appropriate salary schedule. The Bill would permit the Executive to
exceed the salary schedule established for a position for an individual employee, subject to Council
approval, if the Executive finds that it is necessary to attract or retain a senior leader for a specific
position. The Lead Sponsor, Councilmember Leventhal explained the purpose of the Bill
in
a
memorandum to his colleagues at ©5.
Background
The County needs a compensation system designed to attract and retain highly competent
senior leaders as heads of departments and principal offices, and other non-merit employees.
It
is
also important to ensure that the compensation system is in line with other competing
organizations. The Council's Office of Legislative Oversight (OLO) recently issued Report 2016­
1, Comparative Data on High-Level Manager Salaries.
The Report can be viewed at:
http://www.montgomerycountymd.gov/OLOlResources/FilesI2015 Reports!OLOMemorandunl
Report20 16-1.pdf. OLO found that salaries for County non-merit employees was the highest in
the Washington-Baltimore region and higher than most non-local jurisdictions surveyed. The
Chief Administrative Officer's comments and the response to the CAO's comments from OLO
can be viewed at:
http://\V\VW.montgomervcountymd.
gOY
10
LO/Resources/Files/20 16%20Reports/C om binedRespo
nseandComments20 16-1.pdf
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Prior to 1997, each employee holding a non-merit position was paid within a salary
schedule approved by the Council in the operating budget. Bill 51-15 would not mandate any
specific salary schedule.
It
would require the Executive and Council to re-establish a salary
schedule for each non-merit position. The Bill would apply to any employee who is hired or
promoted to head of a department or principal office or other non-merit position after the date
when this Act becomes law.
This packet contains:
Bill 51-15
Legislative Request Report
Leventhal Memorandum
Circle #
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4
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Bill No.
51-15
Concerning: Non-merit employees ­
Salary Schedule - Established
Revised: December 1, 2015 Draft No.
L
Introduced:
December 8,2015
Expires:
June 8,2017
Enacted: _ _ _ _ _ _ _ _ __
Executive: _ _ _ _ _ _ _ __
Effective: _ _ _ _ _ _ _ _ __
Sunset Date: _ _ _ _ _ _ _ __
Ch. _ _, Laws of Mont. Co. _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
Lead Sponsor: Councilmember Leventhal
Co-Sponsors: Councilmembers EIrich and Rice
AN
ACT to:
(1)
(2)
(3)
establish a salary schedule for heads of departments, principal offices, and other
non-merit employees;
require certain salaries to
be
set under the salary schedule established for these
positions; and
generally amend the law governing compensation for non-merit employees.
By amending
Montgomery County Code
Chapter 1A, Structure of County Government
Section 1A-I 04
Boldface
Underlining
[Single boldface brackets]
Double underlining
[[Double boldface bracketsD
* * *
Heading or defined term.
Added to existing law by original bill.
Deletedfrom existing law by original bill.
Added by amendment.
Deletedfrom existing law or the bill by amendment.
Existing law unaffected by bill.
The County Council for Montgomery County, Maryland approves thefollowing Act:
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BILL No. 51-15
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Sec. I.
Section IA-I04 is amended as follows:
IA-I04. Heads of departments and principal offices; other positions designated
as non-merit.
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(a)
Names.
The head of a department or principal office
IS
called the
Director ofthe department or principal office, except that:
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(l)
the Director of Police is also called the Chief ofPolice;
(2) the Director of the Montgomery County Fire and Rescue Service
is also called the Fire Chief; and
(3) the Director of the Office of the County Attorney is called the
County Attorney.
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(b)
Qualifications.
(1) Each head of a department or principal office should be
professionally qualified.
(2) A person holding any other position in the Executive Branch
designated by law as a non-merit position must be professionally
qualified for the position under a position description established
by regulation under method
(l).
(c)
Status.
Heads of departments and principal offices, and holders of any
other position in the Executive Branch designated by law as a non-merit
position, are County employees but are not merit system employees.
(d)
Special reinstatement rule.
A person who was a merit system employee
of the Police Department when appointed as an Assistant Chief of
Police may return to the merit system in the Department at the same
rank that the person last held in the merit system. The person must elect
to return to the merit system within 10 days after leaving the Assistant
Chief position, by notifying the Chief Administrative Officer in writing.
If the previous rank was abolished, the person must be assigned to the
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o
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BILL No. 51-15
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closest equivalent rank, and must receive the salary and benefits that
would apply if the person had remained in the merit system at the
previous rank and the rank: still existed.
ill
Salaries.
The Executive must design
f!
compensation system to attract
and retain highly competent senior leaders as heads of departments and
principal offices, and other non-merit employees in the Executive
Branch. Each of these employees must be paid
f!
salary within
f!
salary
schedule proposed
Qy
the Executive and approved
Qy
the Council in the
Operating Budget of the Montgomery County Government. The salary
schedule may contain
f!
provision permitting the Executive to exceed the
salary schedule established for
f!
position for an individual employee,
subject
to
Council approval, if the Executive finds that it is necessary to
attract or retain
f!
senior leader for
f!
specific position. The Council must
establish
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salary schedule for non-merit positions in the Legislative
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Branch as part of the Operating Budget of the Montgomery County
Government.
Sec. 2. Effective
Date.
This Act must apply to any employee who is hired or promoted to head of a
department or principal office or other non-merit position after the date when this Act
becomes law.
Approved:
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Nancy Floreen, President, County Council
Date
o
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LEGISLATIVE REQUEST REPORT
Bill 51-15 .
Non-merit employees
-
Salary Schedule
-
Established
DESCRIPTION:
The Bill would require the Executive to propose a salary schedule for
heads of departments and principal offices, and other non-merit
employees in the Executive Branch for approval by the Council as part
of the annual operating budget for the County government. The Bill
would also require the Council to establish a salary schedule for non­
merit employees in the Legislative Branch as part of the operating
budget.
Salaries for non-merit employees are not controlled by a salary
schedule established by the Executive and the Council.
To establish a salary schedule for all non-merit County employees
designed to attract and retain highly competent senior leaders as heads
of departments and principal offices, and other non-merit employees.
CAO, Office of Human Resources
To be requested.
To be requested.
To be requested.
To be researched.
Robert H. Drummer, Senior Legislative Attorney
Not applicable.
PROBLEM:
GOALS AND
OBJECTIVES:
COORDINATION:
FISCAL IMPACT:
ECONOMIC
IMPACT:
EVALUATION:
EXPERIENCE
ELSEWHERE:
SOURCE OF
INFORMATION:
APPLICATION
WITHIN
MUNICIP ALITIES:
PENALTIES:
Not applicable
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MONTGOMERY COUNTY COUNCIL
ROCKVILLE, MARYLAND
GEORGE LEVENTHAL
COUNCILMEMBER
AT-LARGE
MEMORANDUM
December 1, 2015
, TO:
'FROM: '
SUBJECT:
Council members
George Leventhal
Bill on Compensation for Senior Non-Merit Employees
On December 8, I plan to introduce a bill on compensation for senior non-merit county
employees. The bill would require the Executive to propose and the Council to approve a salary
schedule for non-merit employees in the Executive Branch. It would also require the Council to establish
a salary schedule for non-merit employees in the Legislative Branch.
It is important, as tbe bill text states, for the county to have a "compensation system to attract
and retain highly competent senior leaders as heads of departments and principal offices, and other
non-merit employees .... "
As
the recent OLD report made clear, compensation for our senior non-merit
employees is in fact highly competitive. My concern is that since 1997, when County Executive Duncan
abolished the salary schedule for these employees, there has been a steady upward drift in
compensation with no apparent framework. This has had an impact on the county's entire salary
structure.
The bill is prospective; it would apply only to employees hired for non-merit positions after the
bill becomes law. Also, the bill authorizes the Executive to exceed the salary schedule, subject to
Council approval, /lif the Executive finds that it is necessary to attract or retain a senior leader for a
specific position."
The common-sense approach in this bill will enable us to attract and retain outstanding
employees while meeting our obligations to the taxpayers. This approach is especially important in our
current tight fiscal situation, including the possibility of a significant tax increase. I would welcome you
as a co-sponsor of this bill.
STELLA
8. WERNER OFFICE BUILDING
100 MARYLANDAVENUE, 6TH FLOOR, ROCKV:LLE, MARYLAND 20850
240n77-7811
OR
240n77-7900, TTY240n77-7914,
FAX240n77-7989
WWW.MONTGOMERYCOUNTYMD.GOV/COUNCIL
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