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Home My WebLink About2013-12-04 PACKET 04.E.REQUEST OF CITY COUNCIL ACTION COUNCIL AGENDA MEETING ITEM # DATE 12/4/2013 . • PREPARED BY Administration Joe Fischbach ORIGINATING DEPARTMENT STAFF AUTHOR **********�********:�**�***��*�*************�**** COUNCIL ACTION REQUEST: Consider adopting a Resolution approving changes 2014 Non-Represented Pay Plan. STAFF RECOMMENDATION Adopt the Resolution approving the changes to the 2014 Non-Represented Pay Plan. 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: � MEMO/LETTER: Memo from Joe Fischbach dated 11/22/2013 � RESOLUTION: Non-Represented Pay Plan Resolution 13-xxx ❑ ORDINANCE: ❑ ENGINEERING RECOMMENDATION: ❑ LEGAL RECOMMENDATION: ❑ OTHER: ADMINISTRATORS COMMENTS ity Administrator �/ � % -� Date COUNCIL ACTION TAKEN: ❑ APPROVED ❑ DENIED ❑ OTHER J TO: FROM: DATE: RE: City of Cottage Grove Honorable Mayor and City Council Joe Fischbach, Human November 22, 2013 Resources Manage� 2014 Pay Plan for Non-Represented Employees Memo Background 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 2014. Wages Staff is recommending a 2% cost-of-living adjustment (COLA) on January 1, 2014. Additionally, staff is recommending the same wage adjustment, if any, that the Police Officers bargaining unit will receive on August 25, 2014. This will ensure that wages do not lose ground with external market comparables. Below is the language from the labor contract: The City will conduct a market comparison for all police patrol bargaining units of cities with populations between 20,000 and 60,000 that have wage amounts established as of July 1, 2014. The City will determine the average cost of living adjustments (COLA) of all bargaining unit groups by the recorded increase in the settled contracts. If the City's bargaining unit is below the average COLA of the combined bargaining unit groups the City will apply that percentage to the base wage rates, less the 2% received on January 1, 2014. The maximum additional amount will be 1%. The increase, if any, will be effective the pay period that includes September 1, 2014. 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. It has been the long term practice of the City to ensure that once a contract is settled for a given year for wages and benefits that all other contracts follow that same pattern, barring any significant external comparison deviations. What staff is proposing are the same COLA adjustments that the Police Offers, Sergeants, Firefighters and Public Works bargaining units will be receiving in 2014. It is difficult to predict at this time what, if any, the increase will be for August 25th. Of the 29 cities mentioned above (Andover, Chanhassen and Shoreview contract with the Sheriff's department), only 6(about 21 %) have settled for 2014. The average of those six is 2.13%. So, if no other city settled before July 1, 2014, our employees would see a 0.13% increase on August 25, 2014. Staff is not recommending any position reclassifications for 2014 at this time. — Benefits The benefit structure for 2014 will remain unchanged. We have had the same structure since 2011. Below is the details of our health insurance program. The EMPLOYER shall pay a maximum contribution per month per employee. The contribution may be used toward the premium for group medical coverage. Employer Contribution HSA Plan Single- 100% of premium Single + One- 70% of premium Single + Children- 70°/a 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 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. Action Requested Consider approving the Resolution adopting a 2014 Pay Plan and Benefits for employees not covered by a labor contract for the City of Cottage Grove. RESOLUTION ADOPTING 2014 PAY PLAN AND BENEFITSfOR EMPLOYEES NOT COVERED �Y 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 nineteen grades and eight steps is hereby adopted as the City's pay schedule for non-represented employees for the pay period including January 1, 2014. A two percent (2%) cost-of-living adjustment (COLA) has been made to 2013 salaries. Additionally, the salaries presented in Attachment A will be adjusted by the same percentage increase, if any, that the Police Officers bargaining unit receives on August 25, 2014. These adjustments cover all non-represented regular, full and part-time employees who are not subject to a bargaining contract for 2014, as defined by the City Council through the Non-Represented Pay Plan. 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 Attachments A will be as follows: Beginning 6 Months 1 Year 2 Years 3 Years 4 Years 5 Years 14 Years - Step A - Step B - Step C - Step D - Step E - Step F - Step G - Step H Only employees hired before 1/1/2012 in the following positions will be eligible for Step H; Payroll Specialist, Accounting Specialist, Secretary, Transcriptionist and Office Assistant II. Be it provided, however, that based on other job-relevant factors (including but not limited to recruitment needs, market comparability, pay equity considerations, and performance), the City Administrator may recommend the placement of an 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. 2014 Pay Plan Page 2 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. ARTICLE II. HOURS 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. ARTICLE III. OVERTIME Section 1. The positions of Fire Chief, Police Captain and Deputy Fire Chief 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 Office Assistant I, Office Assistant II, Property Room Technician, Transcriptionist, Secretary, Accounting Specialist, Payroll Specialist, Investigative Aid, Administrative Secretary, 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 of 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. ARTICLE IV. POLICY Section 1. The Public Safety Director, Fire Chief, Police Captains, and Deputy Fire Chiefs 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 2014 Pay Plan Page 3 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 2014 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 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, tfie employer will cover the first $850- single and $1,700- all others. The employee is then responsible for $450- single and $900- all others. Employee� currently receiving waiver compen�ation will continue to r�ceive waiver compensation. It will be $225/month for full-time employees and 2014 Pay Plan Page 4 $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. Section 6. All other conditions of employment shall be those as adopted by the Personnel Policy, and not in conflict with the foregoing articles. ARTICLE V. REPEAL Section 1. This resolution supercedes and replaces all previous resolutions relating to the pay plan for non-represented employee (including, but not limited to, Resolutions 00-38, 01-084, 01-176, 02-008, 02-132, 02-235, 03-163, 04-214, 04-219, 05-009, 06-096, 06-252, 07-204, 08-201, 09-159, 09-191, 10-181, 12- 053, 12-087 and 13-003). 2014 Pay Plan Page 5 ARTICLE VI. REVIEW 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 2014 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, 2014, and shall remain in effect until amended by the City Council. AMENDMENTS This 2014 Pay Plan was adopted by City Council Resolution No. 13-xxx on 12/4/13. The resolutions amending the pay plan are listed below, and these amendments have been incorporated into the pay plan. Amendments: 1. Resolution No. 05-212 (Adopt 2006 Pay Plan). Adopted 12/21/05. Effective 1 /1 /06. 2. Resolution No. 06-018 (Drop Grade III Car Allowance; Reclassify City Engineer, Community Development Director, Chief Building Official, Financial Analyst, MIS Coordinator, MIS Technician, GIS Technician). Resolution adopted 2/1/06. Effective 1/1/06. 3. Resolution No. 06-080 (Reclassify EMS Coordinator). Resolution adopted 5/3/06. Effective 5/3/06. 4. ,Resolution No. 06-096 (Add Support Services Supervisor and Records Coordinator Positions). Resolution Adopted 5/17/06. Effective 5/17/06. 5. Resolution No. 06-252 Adopting 2007 Pay Plan and Benefits for employees not covered by a labor contract for the City of Cottage Grove. Resolution Adopted 12/20/2006. Effective 1/1/2007. 6. Resolution No. 07-204 Adopting 2008 Pay Plan and Benefits for employees not covered by a labor contract for the City of Cottage Grove. 7. Resolution No. 08-201 Adopting 2009 Pay Plan and Benefits for employees not covered by a labor contract for the City of Cottage Grove. 8. Resolution No. 09-159 Adopting 2010 Pay Plan and Benefits for employees not covered by a labor contract for the City of Cottage Grove. 9. Resolution No. 09-191 Adopting a resolution changing job titles in Grade VII of the 2010 Non-represented Pay and Benefits Plan. 10. Resolution No. 10-181 Adopting 2011 Pay Plan and Benefits for employees not covered by a labor contract for the City of Cottage Grove. 11. Resolution No. 12-053 Adopting 2012 Pay Plan and Benefits for 2014 Pay Plan Page 6 employees not covered by a labor contract for the City of Cottage Grove. 12. Resolution No. 12-087 Adopting 2012-2013 Pay Plan and Benefits for employees not covered by a labor contract for the City of Cottage Grove. 13. Resolution No. 13-003 Adopting 2013 Pay Plan and Benefits, with reclassifications, for employees not covered by a labor contract for the City of Cottage Grove. ATTACHMENT A Proposed 2014 Pay Plan - as amended FLSA Status GRADE 80% 83.8% 86.7% 89.6% 92.4% 96.2% 100.0% A B C D E F G H Finance Director Exempt IA Public Safety Director Exempt I Public Works Director Exempt II Police Captain Exempt III Fire Chief Exempt Parks and Recreation Director Exempt Economic Development Director Exempt City Engineer Exempt Public Works Supervisor Exempt IVA Chief Building Official Exempt Assistant Finance Director Exempt Senior Planner Exempt V Golf Manager Exempt City Clerk Exempt VI Deputy Fire Chief- EMS Coordinator Exempt Deputy Fire Chief- Fire Marshal Exempt Golf Superintendent Exempt VIA Human Resources Manager/Deputy City Clet Exempt Building Inspector Non-Exempt VII Public Works Technician Exempt Management Analyst Exempt MIS Coordinator Exempt Support Services Supervisor Exempt Accountant I Exempt Communications Coordinator Exempt Ice Arena Manager Exempt Recreation Supervisor Exempt Assistant Golf Superintendent Exempt VIII Assistant Golf ManageNFood and Beverage Exempt Administrative Assistant Exempt Management Assistant Exempt MIS Technician Non-Exempt Code Enforcement Officer Non-Exempt Economic Development Specialist Exempt Payroll Specialist Non-Exempt VIIIB Records Coordinator Non-Exempt VIIIA Accounting Specialist Non-Exempt VIIIC Administrative Secretary Non-Exempt IX Investigative Aid Non-Exempt Secretary Non-Exempt IXA Transcriptionist Non-Exempt IXB Assistant Food and Beverage Manager Exempt X Recreation Assistant Exempt Assistant Ice Arena Manager Exempt Property Room Technician Non-Exempt XI Office Assistant II Non-Exempt Office Assistant I Non-Exempt XII 98, 062 102,720 106,274 109,829 113,261 117, 919 122, 577 95,167 99,688 103,137 106,587 109,918 114,439 118,959 90,850 95,166 98,459 101,752 104,932 109,248 113,563 83,907 87,893 90,934 93,976 96,913 100,898 104,884 70,946 74,316 76,887 79,459 81,942 85,312 88,682 64,154 67,201 69,526 71,852 74,097 77,145 80,192 62,447 65,413 67,677 69,941 72,127 75,093 78,059 58,746 61,537 63,666 65,796 67,852 70,643 73,433 53,958 56,521 58,477 60,433 62,322 64,885 67,448 46,518 48,727 50,413 52,100 53,728 55,937 58,147 44,324 46,429 48,036 49,643 51,194 53,300 55,405 55,963 43,805 45,886 47,473 49,061 50,595 52,675 54,756 43,362 45,422 46,994 48,566 50,084 52,143 54,203 54,738 41,615 43,592 45,100 46,609 48,066 50,042 52,019 39,902 41,797 43,243 44,690 46,086 47,982 49,877 50,412 38,386 40,209 41,600 42,992 44,335 46,159 47,982 48,449 38,373 40,196 41,587 42,978 44,321 46,143 47,966 26,523 27,783 28,745 29,706 30,634 31,894 33,154 33,797 20,334 21,299 22,037 22,774 23,485 24,451 25,417