HomeMy WebLinkAboutAgenda - 04-21-1999 - 1.Orange County
Board of Commissioners
Action Agenda
Item No. ..a--
Action Agenda Item Abstract
Meeting Date: Apri121, 1999
Subject: Employee Pay and Benefits Changes for 1999-00
Department: Personnel
Public Hearing: (Y/1~ No
Attachment(s):
Board of Commissioners' Planned Pay and
Benefit Changes for 1999-00
1999-00 Pay and Benefits Implementation
Report (under separate cover)
Information Contact:
Elaine Holmes, Personnel Director
Telephone Numbers: - -ext. 2550
Hillsborough 732-8181
Chapel Hill 968-4501
Durham 688-7331
Mebane 227-2031
Purpose: To confirm the employee pay and benefits components planned for fiscal
year 1999-00 and to consider the implementing policy details.
Background: In October 1998 the Board of Commissioners held a work session on
employee compensation. In preparation for that work session, the Board
received a comprehensive pay and benefits report. This covered alternative
pay directions and options, an extensive benefits review including
comparison with area employers and 401(k) plan information, among other
things.
After consideration and discussion, the Board reached consensus in the
October 13 work session on the components of the employee pay and
benefits plan for fiscal years 1999-00 and 2000-01. The Board unanimously
adopted the pay and benefits changes listed in the attachment to be effective
with fiscal year 1999-00.
The enclosed 1999-00 Pay and Benefits Implementation Report includes the
Manager's Implementing Recommendations for the Board's planned
changes along with related background, policy and cost information. The
Board will fmd within. the report that the Manager plans to recommend a 2.5
percent cost of living increase for 1999-00 and an In Range Increase amount
of 2.5 percent.
Financial Impact: Funds to implement the planned changes and recommended amounts will be
available within the Manager's Recommended.Budget for 1999-00. The
f ~ ~:
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projected costs are shown in the Pay and Benefits Implementation Report.
These are virtually the same as those estimated when the Board adopted the
changes in October. The Board is not being asked to make a decision on
funding or to appropriate funds in this work session. These decisions will be
part of the fmal budget deliberations in June.
Recommendation(s): The Manager recommends the Board:
1. Confirm the planned pay and benefit changes in the attached list (the
same as the list in Section A of the Pay and Benefits Implementation
Report).
2. Consider the Manager's Implementing Policy Recommendations as
outlined in the Pay and Benefits Implementation Report and provide
feedback to the Manager, as desired, and
3. Decide upon one of the alternative approaches to implement the two
Personal Leave Days outlined in Section B, Item 5 (M~nager's
Implementing Policy Recommendations) in the Implementation Report.
H:\e\99payabs
April 16, 1999
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Attachment
Board of Commissioners'
Planned Pay and Benefits Changes for 1999-00
Listed below are the pay and benefits changes the Boazd of Commissioners adopted at the
October 13, 1998 employee compensation work session.
1. COLA and In-Range Salary Progression
To adopt a pay approach in which the Boazd determines each yeaz the total amount of cost
of living and in range increase to be awarded based on cost of living and market factors.
Then the Board designates:
^ A portion of this to be applied as salary structure adjustment (as the current COLA is
applied) applicable to all employees and
^ A portion of it to be applied as In Range Salary Increase to move the salaries of
employees whose work performance is effective or higher to higher salaries in the
salary range.
To address the need for salary progression, the Board discussed a half step (about 2.5
percent) as the amount of the 1999-00 In-Range Salary Increase for employees whose
work performance is effective or higher, but deferred final decision until decision on the
Cost of Living Increase for 1999-00.
2. 1Vleritorious Service Awards
The Board adopted a plan for Meritorious Service Awards. These awards would be one
time, lump sum payments that do not become a part of annual salary. The Board provided
for two tiers of awards: Exceptional - $1,500 and Superior - $750.
In addition, the Board provided that employees who receive the above awards would
receive a Certificate of Recognition as well as other recognition that the County Manager
may recommend.
3. 401(X) Plan Contribution
The Board decided to implement a $15 per pay period County 401(k) plan contribution for
permanent employees effective July 1, 1999. The Board's fmal consensus was that this
contribution would be on an across the boazd basis.
4. Personal Leave Days
The Board decided to grant each permanent employee two personal leave days to be used
as determined by the employee with the department head's approval.
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5. Equity/Retention Fund
The Board decided~to establish an "Equity/Retention Fund" as outlined in the staff
October 1998 Pay and Benefits Report to address establishing or re-establishing equitable
salary relationships among employees in a work unit, including any inequity resulting
from past salary increase limitations on promotion, and to support retention.
6. Two Year Plan
The Board decided it would adopt a two year pay package as outlined above to provide for
more continuity in the pay plan and reduce the need to revisit the pay plan each year. At
the end of 1999-00, the Board decided it would assess the pay and benefits plan and
consider what plan should be in' effect for 2001-02.
H:\e\99payl .doc
April 15, 1999
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®r~i1~@ ®u®9'~~/
Employee Pay and ~enefets
por 1999 - 2000
April 21,1999
ct®ber 199
®arel ®rk Sesso®n
® Reached .consensus on pay and benefits
components
® Decided on a two year plan with these
components covering 1999-00 and 2000-01
Pure®se -April 21 ®rlc
~essi®rt iscussion
~~~;~~:~
1 Review and confirm the planned pay and
benefits changes
~ Consider Manager's Implementing Policy
Recommendations and provide any
feedback
® Decide on approach for implementation of
two Personal Leave Days
1
Pure®se -April 2°! ®rk
Sessi®n iscussi®n
® Not being asked to make a decision tonight
on funding or to appropriate funds
1 Example -Not being asked to make decision on
COLA or In-Range percentages
® Funds to implement the planned changes
and recommended amounts will be in the
Manager's Recommended Budget
1 Funding decisions will be part of the final
budget deliberations in June
Pay and ene~ts ®rnp®nents
® Cost of Living Increase
1 In-Range Salary Progression
1 Meritorious Service Awards
® County 401(k) Plan Contribution
® Two Personal Leave Days
® Equity/Retention Fund
IUlanager~s Irnpiee~nenting
P®licy Rec®rnrnendati®ns
1 Purpose - to operationalize the Board's
pay and benefit decisions
® Found in Section B of Pay and Benefits
Implementation Report
2
0
C®s~ ®f Living Increase-
® As in Board's plan, to be salary structure
adjustment (like past COLA)
1 Determined each year by the Board.
1 Address the need to keep pace with cost
of living and market factors .
1 Manager plans to recommend Cost of
Living Increase of 2.5 percent effective
7uly 1, 1999
In ange Salary Increase
1 Addresses. the need for employee salary
progression in the salary range
1 Board determines percentage each year
1 Requires "proficient"or higher work
performance and is effective with
employee's WPPR Review
1 Manager plans to recommend the In-
Range.Increase amount the Board
discussed of 2.5 percent
IVieri~®ri®us Service vvarcls
1 Purpose - to give pay recognition to
employees whose wark performance and
accomplishments are exceptional or
superior
1 Board decided on award amounts of
1 Exceptional $1,500
1 Superior $750
1 One time, lump sum payment
3
Award Review and
Appr®val r®cess
..~~,r.~~~.~arr~~~r~~r~'a:r:. y ~ ,:~.
1 Recommended in writing by Department
Head
1 Reviewed by Manager and Personnel
Director
1 Requires Manager's advance approval.
Superi®r Award
1 Work Performance rating must be
"Proficient"
1 In addition to Proficient rating,
department head must submit
recommendation citing specific "Superior"
work accomplishments
1 "Proficient" performance rating alone does
not result in a Superior award
~uperi®r Acc®n>tp9ishirnents
1 Cost saving outcomes
1 Innovative approaches to service delivery
1 Improvements in productivity, and services
1 Outstanding customer service
(internal/external)
1 Completion of a major goal, work project
or outcome with significant challenges
4
Excepti®nai Award
1 Top level work performance in the County
1 Work performance rating must be
exceptional
Employee must perform at levels that
consistently and significantly exceed job
standards. Work goes far beyond job
expectations in most functional areas.
Accomplishment are made in unexpected
areas as well
xcepti®nal Award
1 Includes types of accomplishments cited
in Superior but goes beyond that
1 Consistently high levels of functioning in
all areas
PPR ~itanges
1 To support the new Meritorious Service
Awards and In Range Increases,
recommending revise the WPPR
performance levels
1 Eliminate the present "Highly Effective"
performance rating
5
PP e1°f®rn~aance Levels
Present
1 Outstanding
1 Highly Effective
1 Effective
1 Needs Improvement
1 Unsatisfactory
Proposed
1 Exceptional
1 Proficient
1 Needs Improvement
Unsatisfactory
fil~e1' ~
1 Add an employee development or
improvement plan component for
employees whose work performance is
rated Needs Improvement or
Unsatisfactory
C®unty 4®~ (fc~ Plan
C®ntirlbu~i®n
® Board decided on County contribution
amount of $15 per pay period for each
eligible employee
1 last understanding this would be an
across the board contribution rather than
a match
® Effective July 1, 1999
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Pecs®nal Leave ays
® Board decided on addition of two Personal
Leave Days
1 To be used as determined by the employee
with the department head's approval
® Two implementation alternatives
1 As a separate Personal Leave Day policy
1 Added to existing holiday policy like a
"Floating Holiday"
Equety/Itetenti®n Fund
1 Used to address establishing or re-
establishing equitable salary relationships
among employees in a work unit or in
related work units or to address retention
needs.
® Includes an inequity arising from past
salary limits on promotion
Equety/etenti®n Salairy
®ail's®ac~og.ar.~
® Process requires:
1 Department head recommendation and
documentation .
1 Personnel review
1 Manager's advance approval
®-May not exceed 10 percent in a fiscal year
1 Subject to the availability of funding.
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Es~irnated ay and
enefi~s ~®sts
1 Shown in Section C of report
1 Estimates are virtually the same as costs
estimated in October
1 Estimates include Manager's planned
recommendation amounts on COLA and
In Range as examples in order to be able
to see the overall financial impact
1 Chart also show estimated dollar value of
the Personal Leave Days
Nle,ct Steps
® Discussion tonight
1 Following this:
1 Incorporate pay and benefits components in
Manager's Recommended Budget
1 Questions?
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