The URL can be used to link to this page

Home My WebLink About2010-11-17 PACKET 04.H.REQUEST OF CITY COUNCIL ACTION COUNCIL AGENDA MEETING ITEM # DATE 1/17/2010 Administration .- Fischbach L e i . COUNCIL ACTION REQUEST Consider approving a 2011 pay plan for Non - Represented Employees. STAFF RECOMMENDATION Adopt the resolution approving the 2011 pay plan for Non- Represented Employees. BUDGET IMPLICATION $ $ BUDGETED AMOUNT ACTUAL AMOUNT FUNDING SOURCE ADVISORY COMMISSION ACTION DATE REVIEWED APPROVED DENIED ❑ PLANNING ❑ ❑ ❑ ❑ PUBLIC SAFETY ❑ ❑ ❑ ❑ PUBLIC WORKS ❑ ❑ ❑ ❑ PARKS AND RECREATION ❑ ❑ ❑ ❑ HUMAN SERVICES /RIGHTS ❑ ❑ ❑ ❑ ECONOMIC DEV. AUTHORITY ❑ ❑ ❑ ❑ ❑ ❑ ❑ SUPPORTING DOCUMENTS RESOLUTIO ORD INANCE: ■ ENGINEERING RECOMMEND ■ LEGAL RECOMMENDATIO ■ /_� 7► Ti11 ►�IE.��:�r�7:�Y�i7�]►�iT�i�.'�i A z*2 l 10 Date COUNCIL ACTION TAKEN: VAPPROVEDDENIED 0 OTHER �tj 2C✓6 - /81 - City of Cottage Grovg AN Finance • Administrative Services TO: Honorable Mayor and City Council FROM: Joe Fischbach, Human Resources Coordinator DATE: November 12, 2010 RE: 2011 Pay Plan for Non - Represented Employees l-m_ 1 .' Each year the City Council approves a resolution adopting a pay plan and benefits for employees not covered by a labor contract. Attached is a resolution adopting a pay plan and benefits for 2011. Wages Staff is recommending a 1% cost -of- living adjustment (COLA) on January 1, 2011. As you may recall, the 2010 Pay Plan called for a market study for wages to be applied on December 31, 2010, not to be less than 2 %. The market study was complete and the average market increase was 0.98 %, thus the 2% will be applied. Succinctly, Council approved a 2% COLA on December 31, 2010 and staff is recommending a 1 % COLA on January 1, 2011. Additionally, staff is recommending another market study. This will ensure that wages do not lose ground with external market comparables. Below is the language we propose: On July 1, 2011 the City will conduct a market comparison for all public works maintenance bargaining units, clerical bargaining units, and police patrol bargaining units of cities with populations between 20,000 and 60,000 that have wage amounts established as of June 1, 2011. The City will determine the average cost of living adjustments (COLA) of all three (3) combined bargaining unit groups by the recorded increase in the settled contracts. If the City's bargaining units are below the average COLA of the three (3) combined bargaining unit groups the City will apply that percentage to the base wage rates, less the 1 % received on January 1, 2011. The cities used in comparison are cities that the Met Council estimates are between 20,000 and 60,000 in population in 2007. Specifically, the cities are: Andover, Blaine, Fridley, Ramsey, Chanhassen, Chaska, Apple Valley, Hastings, Inver Grove Heights, Lakeville, Rosemount, South St. Paul, Brooklyn Center, Champlin, Crystal, Edina, Golden Valley, Maple Grove, Minnetonka, New Hope, Richfield, Shoreview, St. Louis Park, Maplewood, New Brighton, Roseville, White Bear Lake, Prior Lake, Savage, Shakopee, Oakdale and Woodbury. The cities used in comparisons will be those from the above list that have a settled 2011 contract prior to June 1, 2011. At least annually staff conducts a market analysis of select positions for which good comparison data exists. In comparison to Stanton Five and Six cities (suburbs over 10,000 in population) and to cities between 20,000 and 60,000 in population. The average pay relationship to the market for the non- represented group is 97% which is in accordance with Council wage policy adopted in 1996/97 and reaffirmed by Council in 2010. While compensation varies by pay class both above and below this metric, in total the pay averages 97% of market means for 2010 wages. We adjudge that market comparisons to be within reasonable wage parameters. Therefore, we are not recommending any market adjustments at this time. We also believe that going in to 2011 our wage positions will improve compared to the external market. As stated earlier the average maintenance unit increase in 2010 was 0.98 %. We believe, in most cases, comparable cities give the same increases to all their bargaining units and non - represented employees. So going in to 2011 the average external increase is 0.98% and we are giving 2 %. In review of the pay plan relative to the market it is notable that the pay comparisons and position responsibilities of our Financial Analyst position compare directly to the Assistant Finance Director position within the marketplace. Therefore, it should be noted that within this pay plan staff is recommending an adjustment in title for this position. There will be no wage impact or disparity in pay between this title and position titles in the marketplace. Benefits As you know the City has made changes to the health insurance program. For 2011, there will be increased enrollment options for employees. For many years employees had the choice of single or family coverage. For 2011 they will have 4 choices as a result of a staff committee review of program options: single, single + one, single + children and family. All employees that carry coverage other than single will see their monthly premium decrease. Employees that carry single HDHP coverage will continue to pay $0 toward premium. The City is also increasing the HSA contribution from $700 to $1,000 single and $1,400 to $2,000 all others. We believe in total this HSA contribution level is at about the market mean. The EMPLOYER shall pay a maximum contribution per month per employee. The contribution may be used toward the premium for group medical coverage. HSA Plan Single- 100% of premium Single + One- 70% of premium Single + Children- 70% of premium Family- 70% of premium a &- Na Both plans have a, $4,500- single and $9,000- all others, deductible. However, the employee will be responsible for, $2,500- single and $5,000- all others, of the deductible amount. The remainder will be covered by the employer through a HRA. Of the $2,500/$5,000 amount the employer will contribute $1,000/$2,000 in to the employee's HSA, on a matching basis. The employer contribution amount is provided on a matching basis of 2 (two) employer dollars for every 1 (one) dollar contributed by the employee, up to the annual employer maximum. The employer HSA contributions will be made in four equal payments, the first pay dates in January, April, July and October. Both plans will have an imbedded deductible. There is an 80/20 payment arrangement once the deductible is met, whereby the insurance company pays 80 percent and the employee /employer pay the other 20 percent, up to an out of pocket maximum. The out of pocket maximums are, $5,800- single and $11,600- all others. If the employee /employer experience out of pocket costs, the employer will cover the first $850- single and $1,700- all others. The employee is then responsible for $450- single and $900- all others. Employees currently receiving waiver compensation will continue to receive waiver compensation. It will be $225 /month for full -time employees and $112.50 /month for regular part -time benefit eligible employees. Employees who waive but do not receive waiver compensation may still waive but will not receive any waiver compensation. All new employees must enroll in a minimum of single medical coverage. If an employee receiving waiver compensation elects City insurance and then waives again in the future, they will not be eligible for the waiver compensation. Consider approving the Resolution adopting a 2011 Pay Plan and Benefits for employees not covered by a labor contract for the City of Cottage Grove. Position Grade Cottage Grove compared Cottage Grove compared to Stanton 5 & 6 average to 20,000 - 40,000 cities City Administrator 90% 88% IA 104% 100% 1 96% 95% 11 96% 94% III 95% 94% IV 102% 104% IVA 96% 95% V 96% 98% VI 98% 98% VIA no data no data VII 96% 95% VIII 99% 99% VIIIA no data no data IX 100% 100% X no data no data ,overages 97% 97% RESOLUTION ADOPTING 2011 PAY PLAN AND BENEFITS FOR EMPLOYEES NOT COVERED BY A LABOR CONTRACT FOR THE CITY OF COTTAGE GROVE See Last Page for Amendment Notations ARTICLE I. PAY SCHEDULE Section 1. Attachment A setting forth fourteen grades and seven steps is hereby adopted as the City's pay schedule for non-represented employees for January 1 thru June 30, 2011. A one percent (1 %) cost-of-living adjustment (COLA) has been made to 2010 salaries. In addition, on July 1, 2011 the City will conduct a market comparison for all public works maintenance bargaining units, clerical bargaining units, and police patrol bargaining units of cities with populations between 20,000 and 60,000 that have wage amounts established as of June 1, 2011. The City will determine the average cost of living adjustments (COLA) of all three (3) combined bargaining unit groups by the recorded increase in the settled contracts. If the City's bargaining units are below the average COLA of the three (3) combined bargaining unit groups the City will apply that percentage to the base wage rates, less the 1 % received on January 1, 2011. The cities used in comparison are cities that the Met Council estimates are between 20,000 and 60,000 in population in 2007. Specifically, the cities are: Andover, Blaine, Fridley, Ramsey, Chanhassen, Chaska, Apple Valley, Hastings, Inver Grove Heights, Lakeville, Rosemount, South St. Paul, Brooklyn Center, Champlin, Crystal, Edina, Golden Valley, Maple Grove, Minnetonka, New Hope, Richfield, Shoreview, St. Louis Park, Maplewood, New Brighton, Roseville, White Bear Lake, Prior Lake, Savage, Shakopee, Oakdale and Woodbury. The cities used in comparisons will be those from the above list that have a settled 2011 contract prior to June 1, 2011. Section 2. The positions covered by this resolution are hereby classified into grades as follows on the pay schedule shown in Attachment A. Section 3. For those employees appointed to full-time regular status, normal progression through the pay steps, as set forth in Attachment A, will be as follows: %WFIMIM 6 Months 1 Year 2 Years 3 Years A- Years 5 Years gn lamolga ag NJ AnIALW=121 2011 Pay Plan Page 2 employee at a step other than that indicated by the above usual schedule. Be it further provided that the City Administrator is authorized to recognize and reward meritorious performance by increasing an employee's compensation one additional step on any anniversary adjustment. However, such extraordinary increases shall not be extended more than two times during the initial five years of employment. In addition, the City Administrator is authorized to defer step pay increases and/or annual pay adjustments based on poor performance. An employee's performance must be recognized as satisfactory in order to be eligible for pay increases. Section 1. The average work month for employees for the purpose of computing vacation, sick leave and fraction of a month's work shall be one hundred seventy-three (173) hours. ringrelvaliffeawl Section 1. The positions of Fire Services Chief and Police Captain shall be paid overtime under the following conditions: A. Those employees assigned are called to work on any holiday as listed in the Personnel Policy. B. Those employees called to testify in a court of law on their regularly assigned days off. C. Those employees assigned to work outside employment. Section 2. The positions of Investigative Aid, Administrative Secretary, Paramedic/EMS Coordinator, Building Inspector, Code Enforcement Officer, MIS Technician and Records Coordinator shall be eligible for payment of overtime. Section 3. Overtime shall be paid at the rate • one and one-half times the employee's regular hourly rate. Section 4. No overtime shall be paid to any of the other employees listed in this resolution. However, such employees may earn and use compensatory time as provided in Section 15 of the Personnel Policy. IIIIIIII iI lII IN ilillill'iIillillI III Y Will 1: 111 11 1111111 1 1111 : 11 1 1 111 11111 • 707rf - P77 Man Page 3 Paramedic/EMS Coordinator shall be provided uniforms, subject to the approval of the City Administrator or designee. Section 2. The EMPLOYER shall pay a maximum contribution per month per employee. The contribution may be used toward the premium for group medical coverage. Contribution amounts available but not used for medical coverage can be used for dental insurance for the employee and the employee's dependents, and toward the premium for additional life insurance, long-term disability coverage, or additional benefits allowed under the City's flexible benefits plan. Effective August 29, 2002, all new employees who work an average of thirty one (31) hours per week or more must enroll in a minimum of single medical coverage. Effective 1/1/2005 for current employees not waiving coverage, he/she cannot waive coverage in the future. Further, effective 1/1/2005, if the employee currently waives coverage and chooses to purchase coverage he/she cannot later choose to waive coverage. The employer contribution for 2011 will be as follows: HSA Plan Single- 100% of premium Single + One- 70% of premium Single + Children- 70% of premium Family- 70% of premium HSA Elect Plan Single- 100% of premium Single + One- 70% of premium Single + Children- 70% of premium Family- 70% of premium 2011 Pay Plm Page 4 $1,700- all others. The employee is then responsible for $450- single and $900 - all others. Employees currently receiving waiver compensation will continue to receive waiver compensation. It will be $225/month for full-time employees and $112.50/month for regular part-time benefit eligible employees. Employees who waive but do not receive waiver compensation may still waive but will not receive any waiver compensation. All new employees must enroll in a minimum of single medical coverage. If an employee receiving waiver compensation elects City insurance and then waives again in the future, they will not be eligible for the waiver compensation. Section 3. The City shall pay the premium for group life insurance for all permanent full-time employees; insurance to equal $1,000 coverage per $1,000 of annual base salary. Section 4. The Public Safety Director and Public Works Director shall be issued City vehicles or allowed a monthly car allowance as determined by the City Administrator and subject to the rules established in the City's Travel, Training, and Education Policy. Section 5. Pensioned or pension-eligible former employees (including those who were members of bargaining units during their employment) of the City may continue participation in the City's group hospitalization, health, dental and life insurance programs for themselves and their dependents, provided that such former employee will be required to pay the full premium for such insurance coverage by the first day of each month that coverage is desired. Insured dependents may continue coverage upon death of the former employee. The availability of such coverage to former employees and their dependents shall be consistent with applicable State law and subject to whatever restrictions or limitations may be placed on the coverage by the City's insurance carrier. The City's policy somewhat exceeds minimum requirements of State law. The City Administrator shall annually review the effect of the participation of former employees and their dependents on the City's insurance program, and to the extent not inconsistent with State law, the City Council retains the right to terminate participation and/or otherwise modify the program when it is determined to be in the best interest of the City and/or its current employees. laragmal FMOILINALTAMIMISIM ", Mrs OR, MO 01 1 11TO ".41MAR1010210321"I'll 2011 Pay Pla-w Page 5 The City Administrator shall periodically review this Pay Plan, and shall recommend to the City Council any required adjustments. ARTICLE VII. IMPLEMENTATION PROCESS Section 1. This resolution adopting a 2011 pay plan and benefits for employees not covered by a labor contract, when adopted, shall be updated as necessary. ARTICLE VIII. EFFECTIVE DATE Section 1. This resolution shall become effective January 1, 2011, and shall remain in effect until amended by the City Council. ATTACHMENT A Proposed 2011 Pay Plan - as amended Finance Director Public Safety Director Public Works Director Community Development Director Police Captain Fire Services Chief City Engineer Public Works Supervisor Chief Building Official Assistant Finance Director Senior Planner Golf Manager Arena /Recreation Manager City Clerk EMS Coordinator Golf Superintendent Building Inspector Public Works Technician Management Analyst MIS Coordinator Support Services Supervisor Accountant I Communications Coordinator Economic Development Coordinator Human Resources Coordinator Recreation Coordinator Management Assistant Assistant Golf Superintendent Assistant Golf Manager /Food and Beverage Administrative Assistant MIS Technician Code Enforcement Officer Records Coordinator Administrative Secretary Investigative Aid GIS Technician Assistant Food and Beverage Manager Recreation Program Assistant VIII 43,397 45,458 47,031 48,604 50,123 52,185 54,246 VIIIA 40,865 42,806 44,287 45,769 47,199 49,140 51,081 IX 38,823 40,667 42,075 43,482 44,841 46,685 48,529 X 35,798 37,499 38,797 40,094 41,347 43,048 44,748 80% 83.8% 86.7% 89.6% 92.4% 96.2% 100.0% GRADE A B C D E F G IA 91,482 95,827 99,143 102,459 105,661 110,007 114,352 l 88,781 92,998 96,216 99,434 102,542 106,759 110,976 If 84,754 88,780 91,853 94,925 97,891 101,917 105,943 III 78,278 81,996 84,833 87,671 90,411 94,129 97,847 IV 69,430 72,728 75,244 77,761 80,191 83,489 86,787 IVA 66,185 69,329 71,728 74,127 76,443 79,587 82,731 V 59,849 62,692 64,861 67,031 69,125 71,968 74,811 VI 58,257 61,024 63,136 65,248 67,287 70,054 72,821 VIA 54,804 57,407 59,394 61,380 63,299 65,902 68,505 VII 50,337 52,728 54,553 56,377 58,139 60,530 62,921 VIII 43,397 45,458 47,031 48,604 50,123 52,185 54,246 VIIIA 40,865 42,806 44,287 45,769 47,199 49,140 51,081 IX 38,823 40,667 42,075 43,482 44,841 46,685 48,529 X 35,798 37,499 38,797 40,094 41,347 43,048 44,748