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Home My WebLink About2014-12-17 PACKET 04.B. REQUEST OF CITY COUNCIL ACTION COUNCIL AGENDA MEETING ITEM # DATE 12/17/2014 • , PREPARED BY Administration Joe Fischbach ORIGINATING DEPARTMENT STAFF AUTHOR ***�***�**�*��*******��**��**�**��****�******* COUNCIL ACTION REQUEST Consider adopting a Resolution approving changes 2015 Non-Represented Pay Plan. STAFF RECOMMENDATION Adopt the Resolution approving the changes to the 2015 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 ❑ ❑ ❑ ❑ ❑ ❑ ❑ SUPPORTWG DOCUMENTS � MEMO/LETTER: Memo from Joe Fischbach dated 12/12/2014 � RESOLUTION: Non-Represented Pay Plan Resolution 14-xxx ❑ ORDINANCE: ❑ ENGINEERING RECOMMENDATION: ❑ LEGAL RECOMMENDATION: ❑ OTHER: ADMINISTRATORS COMMENTS f f ; __. . � i y Administrator Date COUNCIL ACTION TAKEN: ❑ APPROVED ❑ DENIED ❑ OTHER City of Cottage Grove Me111O TO: Honorable Mayor and City Council FROM: Joe Fischbach, Human Resources Manage DATE: December 12, 2014 RE: 2015 Pay Plan for Non-Represented Employees 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 2015. Wages Staff is recommending a 2.5% cost-of-living adjustment (COLA) starting with the pay period including January 1, 2015. 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 Officers, Firefighters and Public Works bargaining units will be receiving in 2015. The Sergeants are not settled at this time. Based on the external market, a position reclassification for the Deputy Fire Chief position is warranted. Staff is recommending that they be reclassified from Grade VI to Grade V. The COLA and reclassification will be an increase of about $98,000 over 2014 wages for this group of employees. This equates to about $1,685 annually per employee. Mayor Bailey is also recommending that the City Administrator's annual salary for 2014 and 2015 be set in the attached resolution. They can be found in Article I., Section 2. Benefits The benefit structure for 2015 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% 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 2015 Pay Plan and Benefits for employees not covered by a labor contract for the City of Cottage Grove. RESOLUTION NO. 2014-xxx RESOLUTION ADOPTING 2015 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 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 and one-half percent (2.5%) cost-of- living adjustment (COLA) has been made to 2014 salaries. These adjustments cover all non-represented regular, full and part-time employees who are not subject to a bargaining contract for 2015, 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. This resolution also sets the City Administrator annual salary at $128,208.00, effective 1/1 /2014 and $131,413.00, effective 1/1 /2015. 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 - Step A 6 Months - Step B 1 Year - Step C 2 Years - Step D 3 Years - Step E 4 Years - Step F 5 Years - Step G 14 Years - Step H Only employees hired before 1/1/2012 in the following positions will be eligible for Step H; Payroll Specialist, Accounting Specialist and Secretary. 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 2015 Pay Plan Page 2 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. 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 IIC 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, Economic Development Assistant 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. 2015 Pay Plan Page 3 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 2015 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, 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. 2015 Pay Plan Page 4 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 wk�o 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, Public Works Director and Community _ _ eve opmenf Director/City Engineer 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, 13-003 and 13-134). 2015 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 VIL IMPLEMENTATION PROCESS Section 1. This resolution adopting a 2015 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, 2015, and shall _ Y Y _ _ _ _ _ remain in effect until amended b the Cit Council. AMENDMENTS This 2015 Pay Plan was adopted by City Council Resolution No. 14-xxx on 12/17/14. 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. 2015 Pay Plan Page 6 11. Resolution No. 12-053 Adopting 2012 Pay Plan and Benefits for 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. 14. Resolution No. 13-134 Adopting 2014 Pay Plan and Benefits for employees not covered by a labor contract for the City of Cottage Grove. 15. Resolution No. 14-xxx Adopting 2015 Pay Plan and Benefits, with reclassifications, for employees not covered by a labor contract for the City of Cottage Grove. _ _ _ _ _ _ _ _ _ Passed this 17'h day of December 2014. Myron Bailey, Mayor Attest: Caron M. Stransky, City Clerk ATTACHMENT A Proposed 2015 Pay Plan - as amended 80% 83.8% 86.7% 89.6% 92.4% 96.2% 1U0.0% FLSA Status GRADE A B C D E F G H Finance Director Exempt IA 100,603 105,382 109,029 112,676 116,197 120,975 125,754 Public Safety Director Exempt I 97,634 102,272 105,811 109,351 112,768 117,405 122,043 Public Works Director Exempt II 93,206 97,633 101,012 104,390 107,652 112,080 116,507 Police Captain Exempt III 86,082 90,170 93,291 96,411 99,424 103,513 107,602 Fire Chief Exempt Parks and Recreation Director Exempt Economic Development Director Exempt City Engineer Exempt Public Works Supervisor Exempt IVA 72,785 76,242 78,881 81,519 84,066 87,524 90,981 Chief Building Official Exempt Assistant Finance Director Exempt Senior Planner Exempt V 65,817 68,943 71,329 73,715 76,018 79,145 82,271 Golf Manager Exempt - Deputy Fire Chief- EMS Coordinator Exempt Deputy Fire Chief- Fire Marshal Exempt CityClerk Exempt VI 64,066 67,109 69,431 71,753 73,996 77,039 80,082 Golf Superintendent Exempt VIA 60,269 63,132 65,316 67,501 69,610 72,473 75,336 Human Resources ManagerlDeputy City Clei Exempt Building Inspector Non-Exempt VII 55,358 57,987 59,994 62,001 63,938 66,568 69,197 Project Engineer Exempt Management Analyst Exempt MIS Coordinator Exempt Support Services Supervisor Exempt Accountant Exempt Communications Coordinator Exempt Ice Arena Manager Exempt Recreation Supervisor Exempt Assistant Golf Superintendent Exempt VIII 47,723 49,990 51,720 53,450 55,120 57,387 59,654 Assistant Golf Manager/Food and Beverage Exempt Administrative Assistant Exempt Management Assistant Exempt MIS Technician Non-Exempt Code Enforcement Officer Non-Exempt Payroll Specialist Non-Exempt VIIIB 45,473 47,633 49,281 50,930 52,521 54,681 56,841 57,413 Records Coordinator Non-Exempt VIIIA 44,940 47,075 48,704 50,333 51,906 54,040 56,175 Economic Development Assistant Non-Exempt Accounting Specialist Non-Exempt VIIIC 44,486 46,600 48,212 49,825 51,382 53,495 55,608 56,157 Administrative Secretary Non-Exempt IX 42,694 44,722 46,270 47,818 49,312 51,340 53,368 Investigative Aid Non-Exempt Secretary Non-Exempt IXA 40,936 42,880 44,364 45,848 47,281 49,226 51,170 51,718 Transcriptionist Non-Exempt IXB 39,381 41,251 42,679 44,106 45,485 47,355 49,226 Assistant Food and Beverage Manager Exempt X 39,367 41,237 42,664 44,091 45,469 47,339 49,209 Recreation Assistant Exempt Assistant Ice Arena Manager Exempt Property Room Technician Non-Exempt XI 27,211 28,504 29,490 30,477 31,429 32,721 34,014 Office Assistant II Non-Exempt Office Assistant I Non-Exempt XII 20,861 21,852 22,608 23,364 24,094 25,085 26,076