Agenda Item 10
January 12,2016
Public Hearing
MEMORANDUM
January 8, 2016
TO:
County Council
FROM:
SUBJECT:
Robert H. Drummer, Senior Legislative
Attorney~
Public Hearing:
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, was
introduced on December 8, 2015. A Government Operations and Fiscal Policy Committee
worksession is tentatively scheduled for February 4, 2016 at 9:30 a.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
Memorandum Report 2016-1,
Comparative Data on High-Level Manager Salaries.
The Report
can be viewed at:
http://vvvvw.montgomervcountvmd.gov/OLO/Resources/Files/20 15 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:
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hUp:llwww.montgomervcountymd.gov/O LO/Resources/Files/20 16%20 Reports/CombinedRespo
nseandComments?() 16-1.pdf
aLa found that the Federal government has a salary schedule for non-merit positions that
are appointed by the President, typically with the advice and consent of the Senate. There are 5
levels of this Executive Schedule ranging from Cabinet Secretaries to appointed directors and
deputy directors across multiple federal agencies. See the excerpt from the aLa report at ©6.
OLO also found that the State of Maryland has a salary schedule for non-merit executives
in
State
government. See the Maryland Executive Pay Plan at ©7.
Prior to 1997, each employee holding a non-merit position was paid within a salary
schedule approved by the Council in the operating budget. Each department director was assigned
a specific salary grade that coincided with a salary schedule. See the Appendix to aLa
Memorandum Report 2016-1 showing the former salary grades for County department directors
at ©8. 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
Federal government Executive Schedule
Maryland Executive Pay Plan
Former Montgomery County Executive Salary Grades
Circle
#
1
4
5
6
7
8
F:\LAw\BILLS\1551 Salaries For Non-Merit Employees\PH Memo.Docx
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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
lA,
Structure ofCounty Government
Section
lA-104
Boldface
Underlining
[Single boldface brackets]
Oru!bIe underlining
[[Double boldface brackets]]
* * *
Heading or defined term.
Addedto 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 the following Act:
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BILL No. 51-15
1
Sec. I. Section IA-I04 is amended as follows:
IA-I04. Heads of departments and principal offices; other positions designated
as non-merit.
(a)
2
3
4
Names.
The head of a department or principal office
Director ofthe department or principal office, except that:
(1)
IS
called the
5
6
7
the Director of Police is also called the Chief of Police;
(2)
the Director of the Montgomery County Fire and Rescue Service
is also called the Fire Chief; and
8
9
10
11
(3)
the Director of the Office of the County Attorney is called the
County Attorney.
(b)
Qualifications.
12
13
14
(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).
15
16
17
18
19
(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.
20
21
22
23
(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
24
25
26
27
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Bill
No.
51-15
28
29
30
31
32
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.
W
Salaries.
The Executive must design
~
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
~
salary within
~
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
~
provision permitting the Executive to exceed the
salary schedule established for
~
33
34
35
36
37
38
39
position for an individual employee,
subject
to
Council approval, if the Executive finds that it is necessary to
attract or retain
~
senior leader for
~
specific position. The Council must
establish
~
40
41
salary schedule for non-merit positions in the Legislative
42
43
44
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:
45
46
47
48
49
Nancy Floreen, President, County Council
Date
o
t\law\bills\1551 salaries for non-merit employees\bill4.docx
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LEGISLArlVE 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
MUNICIPALITIES:
PENALTIES:
Not applicable
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MONTGOMERY COUNTY COUNCIL
ROCKVILLE, MARYLAND
GEORGE LEVENTHAL
COUNCI LMEMBER
AT-LARGE
MEMORANDUM
December 1, 2015
TO:
'FROM: '
'SUBJECT:
Council members
George Leventhal
tf-­
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 the 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 OLO 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, "if 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
asa co-sponsor of this bill.
STELLA B, WERNER OFFICE BUILDING
100 MARYLAND AVENUE, 6TH FLOOR, ROCKVILLE, MARYLAND 20850
240n77-7811 OR
240n77-7900,
TTY240n77-7914, FAX240n77-7989
WWWMONTGOMERYCOUNTYMD,GOV/COUNCIL
f~
PRINTED ON RECYCLED PAPER
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Comparative Data on High-Level Manager Salaries
2. Federal Government
The
US
Office of Personnel Management (OPM) publishes average salary data for federal employees,2
and Table 8 summarizes average salary data and salary schedules as of March 2015 for:
Executive Schedule - positions that are appointed by the President, typically with the advice
and consent of the Senate. Includes five levels ranging from Cabinet secretaries (Levell) to
appointed directors, deputy directors, etc. (Level V) across multiple federal agencies.
Senior Executive Service (SES) - high-levell1)anagement and supervisory positions across
multiple federal agencies just below PreSidential appointees.
• GS-13, G5-14, GS-lS - career position grades on the federal general salary schedule. The
Montgomery County Office of Human Resources
Personnel Management Review
reports that
these grades are comparable to the MLS series in the County."
For the SES and GS series positions, OLO included the average salary nationwide as well as the weighted
average for positions in DC, Maryland, and Virginia only. Additionally, the salary schedule shown for the
GS positions includes the DC region locality pay differential. The maximum salaries for federal Executive
Schedule and
SES
employees are lower than the average director salary in Montgomery County.
Table 8. Federal Government Manager Average Salary Data, 2015
Position
executive Schedule
Levell (n=18)
Levell! (n=43)
Level III (n=95)
Level IV (n=251)
Level V (n=18)
All Executive Schedule (n=426)
Actual
Average Salary
$198,450
$179,846
$166,509
$158,434
$149,494*
$163,720
Salary Schedule
Maximum
Minimum
-
-
-
$121,956
-
$203,700
$183,300
$168,700
$158,700
$148,700
-
-
Senior Executive Service
United States (n=7,862)
DC, MD, and VA only (n=5,994)
General Salary Scale (GS)
15
United States (n=61,405)
DC, MD, and VA only (n=40,963)
General Salary Scale (GS) 14
United States (n=122,741)
DC, MD, and VA only (n=63,738)
$170,572
$171,351
$150,966
$151,715
$124,363
$126,530
$183,300
-
$126,245
-
$158,700
-
$107,325
-
$139,523
General Salary Scale (G5) 13
United States (n=250,038)
$102,990
DC, MD, and VA only (n=79,256)
$104,291
$90,823
$118,069
*The OPM database does not indicate why the actual average is higher than the maximum.
-
-
OPM data covers most Executive Branch agencies except for several intelligence offices and agencies (CIA,
NSA, etc.), White House and Office of the Vice President staff, and the U.S. Postal Service.
http://www.fedscope.opm.govldatadefnlaboutehri sdm.asp
3
http://www.montgomerycountymd.gov!counciIlResources!Files/agenda!cm/2015/150423!20150423 G02­
CountyGovernment.pdf, p.36
8
2
The
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STATE OF MARYLAND
executive Pay Plan - Salary Schedule
Annual Rates Effective January 1,2015
Grade Profile
EPP 0001
EPP 0002
EPP 0003
EPP 0004
EPP 0005
EPP 0006
EPP 0007
EPP 0008
Scale
ES4
ES5
ES6
ES7
ES8
ES9
ES10
ES11
9904
9905
9906
9907
9908
9909
9910
9911
Minimum
$79,953
$85,902
$92,333
$99,275
$106,773
$114,874
$123,618
$133,069
Midpoint
$93,277
$100,252
$107,785
$115,923
$124,711
$134,203
$144,451
$155,522
Maximum!
$106,604
$114,600
$123,236
$132,569
$142,646
$153,532
$165,281
$177,977
I
EPP 0009
EX91
9991
$153,027
$204,947
$256.866
CALCULATING BI-WEEKLY SALARY:
Annual Salary x .038143
=
Bi-Weekly Salary
Bi-Weekly Salary x 26.071428 - must equal at least
the annual salary, adding a penny until it does.
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MONTGOMERY COUNTY GOVERNMENT
APPQINTED CLASSES
CLASS
ClASS TITLE
County Attorney
County Health Officer
Director, Addiction, Victim, and Mental
Health Services
Director, Department of Transportation
Director. Department of Police
Director, Office of Finance
Director, Office of Management
&
Budget
Director, Department of Environmental
Protection
Director, Department of Fire
&
Rescue
Services
Director, Department of Public Libraries
Director, Department of Liquor Control
Director. Department of Correction and
Rehabilitation
Director. Department of Facilities and
Services
Personnel Director
Director., Department of Family Resources
Director, Department of Recreation
Director, Department of Housing and
Community Development
Director, Office of Economfc Development
Director, Office of Planning Policies
Director. Offfce of State Affairs
GRADE
39
39
.cooL
7905
7910
7911
7915
7917
79?O
7921
7922
7927
7930
7935
7940
7945
7946
7947
7950
7952
36
39
39
39
39
36
39
36
39
36
36
36
39
36
36
7954
3S
3S
7958
7959
35
Page
47
(0