HomeMy WebLinkAboutMinutes - 19910612 6/iaZ/9/
Sess/vn
June 11, 1991
BUDGET WORK SESSION ON PAY
1 . Three Pay Elements
There are three pay elements in the Manager' s Recommended
Budget for Fiscal Year 1991-92 . The three elements are:
-A 2 .5 percent cost-of-living increase,
-Continuation of the merit pay program, and
-Implementation of Phase II of the Classification
and Pay Study.
These are listed on Attachment 1 along with the estimated
cost for each.
2 . Overview
One way to look at a pay package and compare it to
past years and that of other employers is to look at it
as a percent of payroll.
Attachment 2 is a chart which shows the three pay
elements from the Manager' s Recommended Budget as a
percent of payroll . This Attachment is updated from the
one distributed earlier to reflect current estimated
Permanent Annual Salaries .
For Fiscal Year 1991-92 the three pay elements represent
5 . 2 percent of payroll . This is shown in the "Total
Percent" column. Attachment 2 also shows the pay package
as a percent of payroll for past years . In comparison to
past years, the Fiscal Year 1991-92 pay package is a
lesser percent of payroll .
Attachment 3 shows the results of a survey conducted by
the American Compensation Association (ACA) of projected
salary budget increases . According to ACA, salary budget
increases include general (cost-of-living type) and merit
increases and do not include other increases . On this
basis, Orange County' s proposed salary budget increase
would be 4 .4 percent.
•
-2-
The ACA survey shows a national projection of between 5 .4
percent and 5 . 7 percent for increases in salary budget.
The same increases were projected for the Southern
region.
Attachment 4 provides salary budget information for
private employers in the Research Triangle. The average
salary budget increase of all the employers shown on that
attachment is 5 . 66 percent.
Personnel also has surveyed nine other public employers
in the area to obtain salary budget data. (The employers
are listed in Item 4 . ) Among the nine employers, the
range of salary budget increases reported was from 0 to
five percent, if increased 401 (k) plan contributions are
not included.
3 . Cost-of-Living Increase
The first element of the recommended pay package is a
cost-of-living increase. A cost-of-living increase
responds to two factors : increases in the cost of living
and adjustments other employers are making to their
salary ranges .
The recommended budget includes a 2 .5 percent cost of
living increase.
Information on changes in the cost-of-living as shown by
the consumer price index was given to Commissioners
earlier. That showed that the consumer price index
increased 6 . 1 percent in 1990 and a 4 . 5 percent increase
is projected for 1991 .
As to adjustments planned by other employers, Attachment
5 shows the results from a May 1991 survey conducted by
the North Carolina League of Municipalities . This shows
proposed cost-of-living increases in cities with a
population over 10, 000 . (Cities over 10, 000 usually have
a comparably sized staff to counties . )
Of the 36 cities shown, 18 are reporting no cost-of-
living increase and 18 are reporting a cost-of-living
increase. Of the 18 with a cost-of-living increase, the
average increase is 3 .58 percent.
-3-
In this area there are currently four public employers
with a proposed cost-of-living increase. These are:
Carrboro - 3 .5 percent effective 7-1-91
Cary - 3 percent effective 1-1-92
OWASA - 2 percent effective 7-1-91 and beginning a 2
percent 401 (k) plan contribution effective 1-1-92
Hillsborough - 5 percent effective 7-1-91
The City of Durham is not proposing a cost-of-living
increase but is proposing to increase its 401 (k) plan
contribution for employees from 4 percent to 5 percent
effective January 1 . [The 401 (k) plan is a supplemental
retirement plan. ]
4 . Merit Increases
The second pay element in the Manager' s Recommended
Budget is continuation of funding for the merit pay
program. Attachment 6 summarizes the key purposes that a
merit pay program serves .
Effective January 1, 1990 the County implemented the Work
Planning and Performance Review program (called WPPR) .
Under WPPR, award of any merit increase is directly tied
to the employee' s accomplishment of agreed-on performance
objectives .
The first year of WPPR has been a transition period from
the previous performance evaluation system. The first
year focused on the development of WPPR work plans .
Performance reviews under these work plans began
in 1991 .
Under the Orange County merit pay plan, there are three
levels of merit increase that may be awarded (excluding
zero) : a minimum of 2 . 5 percent, 5 percent, and a maximum
for Outstanding Achievement of 5 percent plus a 2 .5
percent lump sum bonus .
-4-
Attachment 7 shows merit increases awarded to date in
Fiscal Year 1990-91 . This is partial year data only.
There is some lag time between the employee' s performance
review date and the date the completed work plan and any
personnel action are received in Personnel so this data
may change as the fiscal year is completed.
Attachment 7 shows that the average of all merit
increases awarded to date is 4 . 2 percent and that 68 . 7
percent of employees have received an increase.
The County automated merit increase data effective
July 1, 1990 . Over the past months Personnel has worked
with Data Processing to set up reports on the merit
increase program. This data is shown in Attachment 7 .
Merit data was not automated prior to July 1 , 1990 . Such
information could be produced only by manual calculation
from each employee' s personnel file. Thus comparative
data for past years is not available.
For Fiscal Year 1991-92 Personnel surveyed the merit
increase programs of nine other public employers in this
area for comparison. These employers are: Carrboro,
Cary, Chapel Hill, City of Durham, Durham County,
Greensboro, OWASA, City of Raleigh and Wake County.
All of these have proposed a merit pay program for Fiscal
Year 1991-92 except Durham County.
Of the eight with a merit program, six provide for a
minimum merit increase of 2 .5 percent as does Orange
County. One provides for a one percent minimum and one
sets no minimum.
As to maximum merit increase, the policies varied more.
The maximums ranged from 2 .5 percent to no maximum except
the top of the salary range. Of the eight, six provide
for a maximum merit increase of seven percent or higher.
Orange County' s maximum is a five percent salary increase
plus a 2 .5 percent bonus which does not become a part of
salary.
-5-
Personnel also surveyed the average merit increase
awarded to employees under the merit programs . Some of
the responses were relatively exact and others are an
estimate. Two did not provide an average.
Of the seven who gave an average, the overall average
merit increase was 4 . 1 percent. The low was 2 .5 percent
and the high was five percent.
Personnel also surveyed the percentage of employees
receiving merit increases among the nine employers . This
information was not available for two employers . Of the
remaining seven, the lowest percentage was 60 percent.
For that employer, 25 percent of employees are not
eligible because they are at the maximum of the salary
range.
The next highest employer had an average of 70 percent
and the remaining four had averages ranging from 90 to 98
percent.
Attachment 8 provides some additional comparative
information on merit increase policies . This is from an
annual survey conducted by the North Carolina Office of
State Personnel . It covered 110 public and private
employers .
Item 2 on Attachment 8 shows the average percentage of
employees receiving merit increase in this survey. The
overall survey average was 75 . 7 percent. Item 1 of
Attachment 8 shows the maximum merit increase permitted
and Item 4 shows projected merits amounts for Fiscal Year
1991-92 .
This merit program information for Fiscal Year 1991-92
indicates that Orange County' s program is quite
comparable to those of other local governments . It is
competitive with them and is not excessive or out of line
with what is required.
5 . Merit and Cost-of-Living Combined
Personnel also surveyed the average increase being
awarded among the nine employers when merit and cost-of-
living are combined.
-6-
Of the nine, one employer (Durham County) is not granting
either a merit or cost-of-living increase.
One employer could not report an average but projected
that one half of employees would receive over 4 .5
percent.
For seven of the nine, the average combined increase
ranged from 3 . 9 percent to 6 . 5 percent with an overall
average of 5 percent.
6 . Classification and Pay Study_
The third pay element in the Manager' s Recommended Budget
is funding for implementation of the Phase II
Classification and Pay study. This included Health and
Social Services departments and the Phase I restudies . A
report on completion of the Phase II study was provided
to Commissioners at the June 3 meeting.
Implementation of this study is a fundamental need.
Attachment 8 summarizes some of the purposes of the
position classification plan.
paypres2 .doc
June 6, 1991
ORANGE COUNTY BENEFITS
FOR PERMANENT EMPLOYEES
MANDATED BENEFITS
RETIREMENT:
Each Permanent employee is required by law to join the N.C.
Local Governmental Employees' Retirement System. As required
by State law, the County contributes 4.94 percent of salary
for general County employees, and 3 .86 percent for sworn law
enforcement officers.
Each employee contributes six percent of salary.
401(k) PLAN:
As required by State law, the County contributes five percent
of salary for sworn law enforcement officers. The County
makes no 401(k) contribution for other employees.
Employees may contribute to the 401(k) Plan on a voluntary
basis.
SOCIAL SECURITY:
As required by Federal law, the County contributes 7. 65
percent of salary for employees.
Each employee contributes 7.65 percent of salary.
UNEMPLOYMENT COMPENSATION:
As required by State law, the County pays charges based on
actual claims.
Amount budgeted for Fiscal Year 1990-91 $12, 000
Actual amount paid 1990-91 $14,739
Amount budgeted for Fiscal Year 1991-92 $17, 000
There is no cost to the employee.
WORKERS COMPENSATION:
All employees are covered by Worker's Compensation while
performing job duties. The County pays an annual premium
bases on experience and job classifications.
Amount budgeted for Fiscal Year 1990-91 $100, 000
Actual amount paid $121, 046
Amount budgeted for Fiscal Year 1991-92 $125, 000
There is no cost to the employee.
INSURANCES
HEALTH:
Health Insurance is offered and employees have a choice of
three health care plans. Attachment 1 shows the amount the
County pays and the amount the employee pays.
LIFE INSURANCE
ACCIDENTAL DEATH & DISMEMBERMENT:
The County pays $ .30 per month per $1, 000 of salary up to
$50, 000.
There is no cost to the employee for employee coverage. The
employee may elect to cover dependents by paying the cost
($ .83 semi-monthly) .
DENTAL INSURANCE:
This plan is self funded and the County is responsible for
actual claims paid.
There is no cost to the employee if employee only coverage is
selected. The employee pays to cover dependents. Attachment
2 shows the current rates.
OTHER
EMPLOYEE ASSISTANCE PROGRAM:
This program provides confidential assessment, counseling and
referral for personal problems including alcohol and drug
abuse. The County pays $1.65 per month per employee.
There is no cost to the employee.
LONGEVITY PAY:
The County provides Longevity Pay to employees who have
completed at least 15 years of County service. Longevity is
computed by multiplying the employee's annual salary by the
appropriate percentage:
15 years but less than 20 2 .25%
20 years but less than 25 3 . 25%
25 and more years 4.50%
FLEXIBLE COMPENSATION PLAN:
The County pays administrative cost of $3. 50 per pay period
per participant in a Flexible Spending Account and $1. 00 per
pay period for each employee who tax shelters health and
dental premiums only. This cost is offset by FICA savings.
There is no cost to the employee.
TUITION REFUND PROGRAM:
The County reimburses up to $300 per fiscal year to employees
for tuition, fees and books for approved courses.
LEAVES
VACATION LEAVE:
Vacation Leave is earned at the following rates for a
Permanent Full time (40 hour) employee:
Total Years Of
Orange County
Service Vacation Hours Earned
Per Month Per Year
Less than 2 8. 0 96. 0
2 but less than 5 9. 6 115. 2
5 but less than 10 12 . 0 144. 0
10 but less than 15 14.4 172 . 8
15 but less than 20 16.8 201. 6
21 or more 19.2 230.4
SICK LEAVE:
A Permanent employee earns 96 hours (12 days) of Sick Leave
each year.
HOLIDAYS:
The County provides 11 paid Holidays per year.
FUNERAL LEAVE:
A Permanent employee receives three paid days for death in
the employee's immediate family.
CIVIL LEAVE:
Civil Leave is granted with pay to Permanent employees.
MILITARY LEAVE:
Military leave of absence is available to Permanent
employees.
PETTY LEAVE:
A Permanent employee earns 14 hours per year.
FAMILY LEAVE:
A Permanent employee receives three paid days of leave for a
birth or an adoption of a child.
ATTACHMENT 1
HEALTH PLAN YEAR: JANUARY 1, 1991 THROUGH DECEMBER 31, 1991
MAJOR MEDICAL HEALTH INSURANCE RATES
AND MONTHLY SUBSIDY PLAN
DEDUCTIONS EFFECTIVE DECEMBER 1, 1990 - NOVEMBER 30, 1991
TOTAL MONTHLY MONTHLY SEMI-
MONTHLY COUNTY EMPLOYEE MONTHLY
RATES SUBSIDY RATES RATES
1) TRADITIONAL (BLUE CROSS/BLUE SHIELD)
Individual 112 .76 112.76 0. 00 0. 00
E/Children 217. 62 145. 00 72. 62 36. 31
E/Spouse 237.92 165. 00 72 .92 36.46
Family 338.28 205. 00 133 .28 66. 64
2) PERSONAL CARE PLAN (BLUE CROSS/BLUE SHIELD)
Individual 112.76 112 .76 0. 00 0. 00
E/Children 217 . 62 145. 00 72 . 62 36. 31
E/Spouse 237.92 165.00 72 .92 36.46
Family 338.28 205.00 133 .28 66. 64
3) MANAGED CARE PLAN (CAROLINA PHYSICIANS HEALTH PLAN)
Individual 123 . 00 112 .76 10.24 5. 12
E/Children 251. 00 145. 00 106. 00 53 . 00
E/Spouse 271. 00 165. 00 106. 00 53 . 00
Family 394. 00 205. 00 189.00 94 .50
4) HEALTH INSURANCE OPTION
Employees may elect to have a monthly amount of $67 . 50 in
taxable cash paid directly to them instead of electing health
insurance coverage. Employees are required to verify that
they have health insurance coverage elsewhere before this
option can be exercised by completing a "Health Insurance
Waiver Form."
ATTACHMENT 2
DENTAL INSURANCE PLAN
Category Current Monthly Rate
County Employee Total
Employee Only 8. 30 -- 8.30
Employee and 8. 30 8. 30 16. 60
Spouse
Employee and 8. 30 10.44 18 .74
Children
Employee and 8. 30 18.72 27 . 02
Family
TRAVEL & TRAINING page 1
ORIGIN/RECOM BUD
6/91 90-91 91-92 DIFFERI
COMMUNITY MAINTENANCE
Commissioners 15,212 15,400 188
Courts 0 0 0
Elections 1,240 2,000 760 Additional elections
Soil&Water 650 650 0
Sub-Total 17,102 18,050 948
GENERAL ADMINISTRATION
Manager 8,250 8,250 0
Budget 905 905 0
Personnel 6,000 5,000 (1,000)
Finance 2,500 2,625 125
Purchasing 1,300 1,300 0
Central Services 0 0 0
Data Processing 4,000 4,500 500
Sub-Total 22,955 22,580 (375)
TAXATION AND RECORDS
Register of Deeds 4,160 4,360 200
Land Records 1,350 2,450 1,100 Add'l Geographic InformaGIS training)
Tax Assessor 3,000 3,340 340
Tax Collector 2,600 2,600 0
Sub-Total 11,110 12,750 1,640
COMMUNITY PLANNING
Planning 8,100 8,550 450
Economic Development 6,000 4,400 (1,600)
Sub-Total 14,100 12,950 (1,150)
HUMAN SERVICES
Social Services 23,592 34,772 11,180 JOBS & independent Li i not included in
Health 17,219 17,478 259 p origina� udget.
Ag Extension 0 0 0
Recreation and Parks 3,490 3,490 0
Aging 3,725 3,725 0
CAT 300 300 0
Commission for Women 500 500 0
Child Support 2,600 1,200 (1,400)
Sub-Total 51,426 61,465 10,039
TRAVEL & TRAINING PAGE 2
6/91' ORIGINF RECOM BUD
90-91 91-92 DIFFERI
PUBLIC SAFETY
Sheriff 12,500 18,135 5,635 Officer Survival School (10 officers) &
Emergency Services 12,260 12,860 600 fireairm ngRequalification
rain .
Sub-Total 24,760 30,995 6,235
Public Works 8,988 8,050 (938)
Sub-Total 8,988 8,050 (938)
TOTAL 16,399
C:191-92BUD\DUES&SUB.wk l
05-Jun-91
(0191 (C6 ),
SUBSCRIPTIONS
90-91 91-92 DIFFERENCE
COMMUNITY MAINTENANCE
Commissioners 650 450 (200)
Courts 0 0 0
Elections 175 175 0
Soil&Water 18 20 2
Sub-Total 843 645 (198)
GENERAL ADMINISTRATION
Manager 200 200 0
Budget 0 0 0
Personnel 1,000 900 (100)
Finance 150 150 0
Purchasing 400 400 0
Central Services 0 0 0
Data Processing 125 150 25
Sub-Total 1,875 1,800 (75)
TAXATION AND RECORDS
Register of Deeds 600 600 0
Land Records 100 100 0
Tax Assessor 0 0 0
Tax Collector 17 20 3
Sub-Total 717 720 3
COMMUNITY PLANNING
Planning 200 425 225
Economic Development 365 365 0
Sub-Total 565 790 225
HUMAN SERVICES
Social Services * 1,350 3,528 2,178 Includes $j ,878 f$roIndenpndnnt de
Health 1,333 1,362 29 in oiginl 9� �uge
Ag Extension 400 400 0
Recreation and Parks 201 201 0
Aging 75 70 (5)
CAT 45 45 0
Commission for Women 150 150 0
Child Support 200 200 0
Sub-Total 3,754 5,956 2,202
*Includes materials for clients, such as in the Independent Living Program, books
and other educational materials for the participants of this program.
r
a1 �
SUBSCRIPTIONS
. . , 90-91 91-92 DIFFERENCE
' ORIG BUD RECOM BUD
PUBLIC SAFETY
Sheriff 340 340 0
Emergency Services 300 300 0
Sub-Total 640 640 0
Public Works 600 500 (100)
Sub-Total 600 500 (100)
TOTAL 2,057
C:191-92BUD1DUES&SUB.wk l
06-Jun-91
Attachment 1
June 1991
THREE PAY ELEMENTS
ESTIMATED
ITEM COST*
A 2 .5 Percent Cost-Of-Living $368, 688
increase for permanent employees
effective July 8, 1991
Continuation of the Merit Pay 286,678
Program
Implementation of the Phase II 123, 145
Classification and Pay Study
(Health, Social Services and
Phase I restudies) effective
July 8, 1991
*Includes all fund sources
:merit.doc
June 1991
-ESTIMATED-
COST-OF-LIVING (COL) , MERIT AND CLASSIFICATION STUDY
AS A PERCENT OF PERMANENT SALARIES
PERMANENT
FISCAL ANNUAL COL COL MERIT MERIT CLASS CLASS TOTAL
YEAR SALARIES* BUDGET* PERCENT BUDGET* PERCENT STUDY* PERCENT TOTAL PERCENT
1991-92 13, 116,259 322, 500 2 .5 254, 621 1 . 9 109, 375** . 8 686, 496 5 . 2
1990-91 11, 588,263 440,354 4 260, 236 2 .2 30, 000** . 3 730, 590 6. 3
1989-90 10, 534, 750 421, 390 4 196, 287 1 . 9 -- - 617, 677 5 . 9
1988-89 8, 726,900 436, 345 5 187, 197 2 . 1 -- - 623, 542 7 . 1
1987-88 7,085,978 325, 955 4 . 6*** 330, 729 4 . 7 210, 516 3 867 , 200 12 . 2
*Does not include retirement or social security. Permanent Annual Salaries includes new
positions and reflects the best available estimate of permanent payroll used in budgeting
for cost-of-living and merit increases each year.
**For FY 1991-92, Phase II Classification and Pay Study implementation (Health, Social
Services and Phase I restudies) . For FY 1990-91, Phase I Classification and Pay Study
implementation for departments except Health and Social Services .
***With implementation of new salary schedule, employee salaries were placed
on the closest step to a 4. 6 percent increase.
rt
rt
W
n
co125 .doc m
0
n
N
•
Attachment 3
June 1991
AVERAGE 1991 PROJECTED SALARY BUDGET INCREASES*
NON-EXEMPT EXEMPT OFFICERS/
AREA SALARIED SALARIED EXECUTIVES
National 5.4 5 .5 5.7
Southern 5.4 5 .5 5.7
Region
*1990-91 American Compensation Association (ACA)
Survey. The survey includes 2,427 U.S. firms and
151 Canadian firms representing industrial,
service, utility, finance, government, education
and health-care organizations. According to ACA,
"salary budget increases" includes general (cost-
of-living increases) and merit increases only.
:averages.doc
Attachment 4
June 1991
RESEARCH TRIANGLE EMPLOYERS*
Average of salary budget increases as a
percent of payroll:
5.66 percent
Employers Included:
ACCATRL Network Systems
Becton Dickinson & Company Research
Center
Burroughs Wellcome Co.
Edward Weck Inc.
Glaxo
Mitsubishi
NSI Technology Services Corp
Northern Telecom Inc.
Research Triangle Institute (RTI)
Rhone-Poulenc AG
SAS Institute Inc.
*May 29, 1991 survey conducted by Duke
University Office of Human Resources
:averages.doc
Attachment 6
June 1991
PURPOSES
MERIT PAY PLAN
1. Directly ties the employee' s pay to
accomplishment of specific performance
objectives
2 . Provides higher level of rewards for
employees with higher levels of
performance
3 . Supports and reinforces the use of the
Work Planning and Performance Review
program, including better day-to-day
communication on performance
4. Increases the clarity of employee goals
5. Helps support organizational change when
needed
6. Creates a sense of challenge for employees
7 . Provides a mechanism for employees to
advance to higher salaries in the salary
range in relation to new hires
pay.doc
Attachment 7
June 1991
FISCAL YEAR 1990-91
MERIT INCREASES FOR
ORANGE COUNTY EMPLOYEES*
CATEGORY NUMBER PERCENT
2.5 Percent 111 23
5.0 Percent 202 43
5.0 Percent plus 13 3
2.5 Percent Lump Sum
None** 149 31
For Employee Receiving Merit Increase, Average Merit
Increase: 4.2%
Percent Employee Receiving Merit Increase: 68.7%
* July 1, 1990 through June 6, 1991 only
** Includes employees not eligible, eligible employees not
receiving an increase, and eligible employees whose
reviews have not yet occurred
:merit.doc
Attachment 8
June 1991
MERIT INCREASE POLICIES*
1. Maximum Merit Increase Permitted
- Average 8.8%
- Local/Municipal governments 7 .8%
average
- State governments average 5.4%
2. Percent of Employees Receiving
Merit Increases
- Survey average 75.7%
- Local/Municipal governments 71.7%
average
- State governments average 55.4%
3. Merit Increases Budgeted for FY 90-91
- Survey average 4.8%
- Local/Municipal governments 4.8%
average
- State governments average 3 .5%
4. Merit Increases Projected for FY 91-92
- Survey average 4.8%
- Local/Municipal governments 5.2%
average
- State governments average 4.3%
*From December 1990 Office of State Personnel
"1990-91 Compensation Report. " This covered
110 employers, primarily in North Carolina,
and 15 state governments.
:chart.doc
Attachment 5
June 1991
ANTICIPATED COST-OF-LIVING ADJUSTMENTS BY
N.C. CITIES AND TOWNS FOR FY 91-92*
GREATER THAN
10,000 IN
SURVEY ANALYSIS POPULATION
Number of Cities Responding 36
With Cost-of-Living on One Date
Number of Cities Reporting 18
0% Cost-of-Living
Average Cost-of-Living 1.79%
Anticipated With Those
Reporting 0% Adjustment
Average Cost-of-Living Without 3 .58%
Those Reporting 0% Adjustment
Number of Cities Reporting a 4
5% Cost-of-Living
Range of Cost-of-Living Reported 2 .0% - 5.0%
*May 1991 survey conducted by North Carolina League of
Municipalities
:merit.doc
Attachment 9
June 1991
PURPOSES
POSITION CLASSIFICATION PLAN
1. Serves as the foundation for the
pay plan
-Defines the County's positions
-Supports comparisons with the labor
market
-Establishes appropriate internal
salary relationships
-Assures that positions with similar
duties and responsibilities are
treated alike (equal pay for equal
work)
2 . Promotes employee relations by
providing a systematic, objective
basis for pay
3 . Supports recruitment and retention of
qualified employees
4. Supports employee career development
by defining promotional ladders
5. Serves as a budgeting tool by
defining positions and costs
pay.doc
ADDITIONAL INFORMATION GIVEN TO TAXWATCH TODAY
JUNE 1991
ORANGE COUNTY CONTRIBUTIONS TO EMPLOYEE BENEFITS
ITEM COMMENT COST 1989-90
TOTAL ALL SALARIES $10, 838, 951
TOTAL ALL BENEFITS Including Holiday, Vacation
And Sick Leave $ 3, 397, 162
SOCIAL SECURITY,
WORKERS ' COMP &
UNEMPLOYMENT
$876, 688
RETIREMENT 4 . 94% General Employees
3 . 86% Law Enforcement Officers
$533, 190
401 (k) Law Enforcement Officers
Only $ 84, 982
HEALTH INSURANCE ( See attached chart) . . $471, 824
LONGEVITY PAY 15 but less than 20 years 2 .25% of salary
20 but less than 25 years 3 .25% of salary
25 and more years 4 .50% of salary
$ 48, 382
DISABILITY INSURANCE None $ -0-
LIFE INSURANCE $ 39, 943
OTHER
LAW ENFORCEMENT OFFICER' S SEPARATION
ALLOWANCE $ 16, 747
RETIREE HEALTH INSURANCE
$ 32, 157
DENTAL INSURANCE $ 41, 281
TUITION REFUND $ 2,464
Total $ 92, 649
2
HEALTH PLAN YEAR: JANUARY 1 , 1991 THROUGH DECEMBER 31 , 1991
MAJOR MEDICAL HEALTH INSURANCE RATES
AND MONTHLY SUBSIDY PLAN
DEDUCTIONS EFFECTIVE DECEMBER 1 , 1990 - NOVEMBER 30, 1991
TOTAL MONTHLY MONTHLY SEMI-
MONTHLY COUNTY EMPLOYEE MONTHLY
RATES SUBSIDY RATES RATES
1 ) TRADITIONAL (BLUE CROSS/BLUE SHIELD)
Individual 112 . 76 112 . 76 0 . 00 0 . 00
E/Children 217 . 62 145 . 00 72 . 62 36 . 31
E/Spouse 237 . 92 165 . 00 72 . 92 36 . 46
Family 338 . 28 205 . 00 133 . 28 66 . 64
I2 ) PERSONAL CARE PLAN (BLUE CROSS/BLUE SHIELD)
Individual 112 . 76 112 . 76 0 . 00 0 . 00
E/Children 217 . 62 145 . 00 72 . 62 36 . 31
E/Spouse 237 . 92 165 . 00 72 . 92 36 . 46
Family 338 . 28 205 . 00 133 . 28 66 . 64
3) MANAGED CARE PLAN (CAROLINA PHYSICIANS HEALTH PLAN)
Individual 123 . 00 112 . 76 10 . 24 5 . 12
E/Children 251 . 00 145 . 00 106 . 00 53 . 00
E/Spouse 271 . 00 165 . 00 106 . 00 53 . 00
Family 394 . 00 205 . 00 189 . 00 94 .50
4) HEALTH INSURANCE OPTION
Employees may elect to have a monthly amount of $67 . 50 in taxable cash
paid directly to them instead of electing health insurance coverage.
Employees are required to verify that they have health insurance -
coverage elsewhere before this option can be exercised by completing a
"Health Insurance Waiver Form. "
a
. *gyp,. r
VACATION LEAVE*
For a Permanent Full Time Employee
Total Years of Vacation Hours
Orange County Earned
Service Per Month
less than 2 8 . 0
2 but less than 5 9 . 6
5 but less than 10 12 . 0
10 but less than 15 14 . 4
15 but less than 20 16 . 8
21 or more 19 . 2
Average 14 days earned per year
estimated $562 , 728
HOLIDAYS* 11 days per year
estimated $442, 144
SICK LEAVE* 12 days earned per year
estimated (based on 6 days
used) $244 , 632
4'
*Leave already is included in total salaries
3
JUNE 1991
ORANGE COUNTY CONTRIBUTIONS TO EMPLOYEE BENEFITS
ITEM COMMENT COST 1989-90
TOTAL ALL SALARIES $10, 838, 951
TOTAL ALL BENEFITS Including Holiday, Vacation
And Sick Leave $ 3, 397 , 162
SOCIAL SECURITY,
WORKERS ' COMP &
UNEMPLOYMENT
$876, 688
RETIREMENT 4 . 94% General Employees
3 . 86% Law Enforcement Officers
$533 , 190
401 (k) Law Enforcement Officers
Only $ 84 , 982
HEALTH INSURANCE (See attached chart) . . $471, 824
LONGEVITY PAY 15 but less than 20 years 2 . 25% of salary
20 but less than 25 years 3 . 25% of salary
25 and more years 4 . 50% of salary
$ 48, 382
DISABILITY INSURANCE None $ -0-
LIFE INSURANCE $ 39 , 943
OTHER
LAW ENFORCEMENT OFFICER' S SEPARATION
ALLOWANCE $ 16, 747
RETIREE HEALTH INSURANCE
$ 32, 157
DENTAL INSURANCE $ 41, 281
TUITION REFUND $ 2, 464
Total $ 92, 649
VACATION LEAVE*
For a Permanent Full Time Employee
Total Years of Vacation Hours
Orange County Earned
Service Per Month
less than 2 8 . 0
2 but less than 5 9 . 6
5 but less than 10 12 . 0
10 but less than 15 14 .4
15 but less than 20 16 . 8
21 or more 19 .2
Average 14 days earned per year
estimated $562, 728
HOLIDAYS* 11 days per year
estimated $442 , 144
SICK LEAVE* 12 days earned per year
estimated (based on 6 days
used) $244, 632
*Leave already is included in total salaries
HEALTH PLAN YEAR: JANUARY 1, 1991 THROUGH DECEMBER 31, 1991
MAJOR MEDICAL HEALTH INSURANCE RATES
AND MONTHLY SUBSIDY PLAN
DEDUCTIONS EFFECTIVE DECEMBER 1, 1990 - NOVEMBER 30, 1991
TOTAL MONTHLY MONTHLY SEMI-
MONTHLY COUNTY EMPLOYEE MONTHLY
RATES SUBSIDY RATES RATES
1 ) TRADITIONAL (BLUE CROSS/BLUE SHIELD)
Individual 112 . 76 112 . 76 0 . 00 0 . 00
E/Children 217 . 62 145 . 00 72 . 62 36 . 31
E/Spouse 237 . 92 165 . 00 72 . 92 36 . 46
Family 338 .28 205 . 00 133 .28 66 . 64
2 ) PERSONAL CARE PLAN (BLUE CROSS/BLUE SHIELD)
Individual 112 . 76 112 . 76 0 . 00 0 . 00
E/Children 217 . 62 145 . 00 72 . 62 36 . 31
E/Spouse 237 . 92 165 . 00 72 . 92 36 . 46
Family 338 .28 205 . 00 133 .28 66 . 64
3 ) MANAGED CARE PLAN (CAROLINA PHYSICIANS HEALTH PLAN)
Individual 123 . 00 112 . 76 10 . 24 5 . 12
E/Children 251 . 00 145 . 00 106 . 00 53 . 00
E/Spouse 271 . 00 165 . 00 106 . 00 53 . 00
Family 394 . 00 205 . 00 189 . 00 94 .50
4) HEALTH INSURANCE OPTION
Employees may elect to have a monthly amount of $67 .50 in taxable cash
paid directly to them instead of electing health insurance coverage.
Employees are required to verify that they have health insurance
coverage elsewhere before this option can be exercised by completing a
"Health Insurance Waiver Form. "
`'' °'
@ ttz e & uzPutr blic r irk 6.fR11 •
E —!
� „ P.O. BOX 8181
HILLSBOROUGH, NORTH CAROLINA 27278
Wilbert J. McAdoo
DIRECTOR
To: Orange County Board of Commissioners I,'
From: Wilbert McAdoo, Public Works Director V" c
Re : In-house vs. Contract Custodial Services
Date : June 10 , 1991
Please note the attached information illustrates custodial
services currently being provided by Orange County Public
Works Custodial Staff . The staff consist of 11 Custodians
and one Custodial Supervisor . They clean a total of 192 , 673
square feet of space. Orange County facilities are spread
throughout the County and vary in size, function, traffic
pattern, different hours and different occupants. Custodial
Staff provides different levels of service for different
buildings as illustrated in the "Custodial Services
Schedule. " Each facility is unique and each has its ' own
particular cleaning needs.
In an attempt to compare the cost for in-house custodial
services and contract services, I researched what some other
local governments are paying for routine contract custodial
services and figured cost on a per square foot basis . The
current custodial services provided by Orange County
Custodial Staff cost $1 .43 per square foot .
•
North Carolina Administration Buildings :
Albemarle Building $1 . 60
Administration Building 1 .44
Wake County average: . 87
Durham County average: . 60
Town of Chapel Hill average: 1 . 57
Office Location Highway 86 North Hillsborough
As illustrated, the square footage cost varies widely from
building to building. Additionally, the level of services
vary widely, different entities define routine service and
non-routine services differently. Non-routine service
requires addditional cost . The measurement of the level of
service and cost associated is complex and many factors must
be considered in evaluating the performance of building
cleaning. In comparison analysis with other local government
custodial services, one can only generalize what the true
cost would be to contract out custodial services nor can we
pre-determine what level of services we would receive. The
only true way of assessing cost for contract custodial
services is to prepare specifications, receive bids and
evaluate them. Then evaluate contract performance to
determine if the contractor can meet the required level of
service and contract requirement .
Orange County Staff has taken measures to save money in
cleaning:
1 . New positions have not been granted since 1985-86
budget years .
2 . Changed work hours from 1 : 00 P. M. to 9 : 00 P. M . and
from 3 : 00 P. M. to 11 : 00 P. M. to increase
productivity - exception one custodian 6 : 00 A. M. to
2 : 00 P. M.
3 . Supervisor performs routine inspection to evaluate
custodial employee performance .
4 . Developed project teams for non-routine services.
5 . Reassigned staff to maximize performance .
6 . Provides in-house training on use of equipment and
cleaning supplies .
7 . Shares equipment among buildings.
8 . Purchases cleaning supplies in large quantities and
when possible, under State contract .
In conclusion, the Orange County Custodial Staff provides a
high level of service at a reasonable cost . To measure the
cleaning services provided, one must consider the type of
cleaning performed, the method and equipment used and the
level of service desired by the building occupants . There is
always the opportunity to change the frequency of services
( and therefore, the quality) or simply eliminate certain
activities, but we must also be aware of the ramifications in
terms of effect on service.
Should you have questions or need additional information,
please do not hesitate to contact me .
Attachments : 5
ORANGE COUNTY PUBLIC WORKS
CUSTODIAL SERVICES SCHEDULE
The following is an outline of custodial services provided
for Orange County Offices through the Orange County Public Works
Department. Services are broken down by area , frequency of
provision and type of service rendered .
I • OFFICES, CONFERENCE ROOMS AND LIBRARIES
A. DAILY
* Empty wastecans , clean and replace liners as
needed .
* Empty and clean ashtrays , cigarette stands and
sand-filled urns .
* Dust desk and cabinet tops .
* Vacuum and spot clean all carpeting .
* Sweep and/or dry mop all hard surface floors,
including storage rooms .
* Clean steps and all entrances .
* Spot mop floors where needed.
* Re-arrange furniture as required.
* Spot clean all interior glass partitions and
doors .
B. WEEKLY
* Dust horizontal surfaces of desk, chairs , tables
and files .
* Sweep,, dry mop and/or vacuum full floor area .
* Damp mop with clear water and wax mixture and buff
non-carpeted flooring .
* Spot clean walls , doors , door frames , and woodwork .
C. MONTHLY
* Dust vertical surfaces and underneath furniture,
including table and chair legs .
* Dust picture frames and wall plaques .
* Remove cpbwebs from ceilings , walls , corners ,
moldings , and baseboards .
* Clean and dust window sills and venetian 1 i i nds .
* Wash waste receptacles as needed .
D. SEMI-ANNUALLY
* St rip resilient floors and apply ( 4 ) four thin
coats of finish . Allow floor fin sh to harden ( 2 )
two to ( 4 ) four days before buffing .
• Vacuum all. upholstered o
1_ l lste.r•ed fui•nitur'e; clean, witl-,
germicidal detergent all vinyl on upholstered
furniture , all soled vinyl furniture, hard plastic
chairs and benches .
II . BATHROOMS
A. DAILY
* Sweep, scrub and deodorize floors .
* Clean and disinfect sinks , toilets , urinals ,
mirrors , showers and all other bathroom fixtures .
* Spot clean and dust other surfaces including tile .
* Empty all trash receptacles and service all
dispensers .
* Refill paper towels , toilet tissue, sanitary
napkin and hand soap dispensers .
B. WEEKLY
* Damp-wipe walls , stall surfaces and doors .
* Damp-wipe trash receptacles .
C. MONTHLY
* Buff resilient floors .
III . STAIRWAY CLEANING
A. DAILY
* Sweep or vacuum steps and landings .
* Dust handrails , ledges, radiators , etc .
B. BI-WEEKLY
* Damp mop steps, risers and landings .
* Spot clean walls , doors , door frames and woodwork .
* Polish all kick door plates , push plates , brass
light switch plates . Wipe off all plastic light.
switch plates .
IV. COURTROOMS
A. DAILY
* Empty all ash trays , cigarette stands and sand-
filled urns .
* Empty all wastecans and clean .
* Clean sinks , mirrors and supply paper towels .
* Dust horizontal surface of all furniture and clean
glass desk tops .
* Vacuum carpeted areas and sweep and/or dry mop. non-
carpeted areas .
V. CORRIDOR ENTRANCE AND LOBBY CLEANING
A. DAILY
* Empty all ash trays, cigarette stands and sand-
filled urns .
* Empty all wastecans and clean.
* Clean and disinfect.. all drinking fountains .
* Dust all surfaces .
* Sweep and/or dry mop all non-carpeted floor areas .
* Damp mop floors and buff them where needed in main
entrances .
* Clean both sides of main entrance door or window
glasses . •
* Spot clean furniture, fixtures , walls and
partitions .
* Vacuum carpeted floors .
B. SEMI-ANNUALLY
* Strip floors and apply ( 4 ) four thin coats of floor
finish .
* Thoroughly clean all floor and base boards .
* Buff floors .
* Wash all outside glasses , including windows .
* Clean all venetian blinds .
VI . MISCELLANEOUS
Supply rooms and storage cabinets must be cleaned and
organized for inspection on a quarterly basis .
REQUIRED TIME - ROUTINE WORK
•-- ---- -- --- -- - ._ .
FACILITY SQ. FOOTAGE HRS./DAY DAYS/WEEK FIRS./WEEK WEEKS/YEAR /YEAR
Court Street 8,660 3 5 15 52 780
Sheriff 7,359 2 5 10 52 520
F 'wyer Building 4,469 2.5 r
, 5 2.5 52 650
Northside 12,630 5 5 .?
.., 52 1,300
M,v;dy Building 4,800 2.5 5 12.5 52 650
Emergency Management 6,000 2.5 3 7.5 52 c
.., 390
Planning and Agriculture 24,800 12 5 61! 52
3,120
Animal bntrol 1,260 1 5 5 52 260
Public Works 2,400 2 1
, 6 52 312
Motor Pool 1,521 1 3 :'. 52,. 156
Sanitation Office 1,200 1 3 3 52 156
Cedar Grov? 500 1.5 3, 4.5 52.. 214
Richard bitted Basement 19,100 7.5 5 37.5 52,‘ 1,950
Richard Whitted 1st Fl. 19,100 7.5 5 37.5 52 1,950
Richard Whittd 2nd Fl. 19,100 7.5 r
., 37.5 52 1,950
Old Courthouse 7,123 2 5 10 52 520
Recreation Department 9,492 3.5 5 17.5 :'. 910
Jail 9,048 2.5 5 12.5 52 650
Tan and Record,. 12,450 5 5 25 52 1,300
Centel 1,500 1 5
52 260
,
New Cc;urthousc 20,136 9 5 45 52 2,340
TOTAL 192,673 81.5 95 391.5 52 20,358 Annual Routine
Custodial Service
I
AVAILABLE HOURS PER YEAR 2088
HOLIDAY ( 88 )
VACATION ( 96 )
NON-PRODUCTIVE TIME * ( 202 )
AVAILABLE HOURS PER CUSTODIAN 1702
CUSTODIAN HOURS NEEDED 20 , 358
ROUTINE WORT: CUSTODIANS NEEDED 20 , 358/1702 = 11 . 96
Please note these hours reflect time required for routine
wor':c or area assignments . Does not include non-routine work
such as the following :
* Shampooing Carpet
* Strip and Refinish Resilient Floors
* Cleaning Exterior Windows
* Cleaning Blinds and Light Fixtures
* Special services - locking, unlocking buildings ,
changing light bulbs , emergencies .
Estimate the equivalent of two ( 2 ) fu.l] -time custodians to
accomplish non-routine tasks . Currently utilize team
approach to accomplish non-routine task. during these
periods other custodians double up on assigned areas to
complete routine task.
* Non-productive time - sick leave, coffee break, travel
time .
'
. . .
.
CUSTODIAL SERVICES COST
----
_
__ - -�- _ --------
CUSTODIAN SALARY BENEFITS TOTAL YRS . OF
-- -- -- =~~==SERVICE
519 . 1 $17 , 120 $4 , 651 $21 , 771
520 . 1 $19, 103 $4 , 187 $23 , 290 11
522 . 1 $13 , 745 $4 , 765 $18 , 510
�
523 . 1 S17 , 701 $4 , 014 � l ' ~75 7
524 . 1 ' ^ ' '
, $13 , 745 $4 , 765 $18 , 510 '
521 , I $17 , 327 $3 , 956
526 . 1 $14 , 968 $3 , 650 $21 , 283
�
527 , 1 $14 , 968 $3 , 650 $18 , 618 2
' ' $l8 6l8 ,
528 .1 �l5 l5� -- - ' -
. , $3 , 674 $18 , 828 2
525 . 1 $18 , 194 $4 , 069 $22 , 263 9
532 . 1 $18 , I94 $4, 069 $22 , 263 5
SUBTOTAL $180 , 279 S45 , 450 $225 , 729
CUSTODIAL
SUPERVISOR $22 . 391 $4 , 613 $27 , 004
TOTAL $202 , 670 $30 , 063 $252 , 7]]
TOTAL PERSONNEL COST
$252 , 733
SUPPLIES
$20 , 000
EQUIPMENT
$3 , 000
TOTAL COST CUSTODIAL SERVICES $275 , 733
�
� �
•
.
CUSTODIAL ASSIGNMENTS
C FOOTAGE
SQUARE
BUILDINGS ASSIGNED 8 ,660
NUMBER 4 ,469
CUSTODIAN Street CUS Court St Department 630
Sheriff' s er Building 1�,'6p0
528 .1 Sawyer 6 ,000
No
Moody Ba ildin9 24 ,800
Moody 1 ,2p0
532 .1 911 & Agriculture 500
Planning 19 ,100
Animal
519 .1 & Cedar Grove tied Building 1 Whi 1g 100
521 `firstd floor) Building 525 .1. d E . Whetted 19 ,100 1
Richard door)
t,9 tted Building 527 .1 x
Richard E . Whi
R second door) 9 ,492
9lD48
522 .1 Old Courthouse Department 12 ,450
(ecreati°n 1 ,500
• 526 .1 Jail ds Building 136
` Tax & Records 22',400
Centel '521
520 .1 New Courthouse 1 '200
Works Public cpool e
523 .1 & Motor Office 524 .1 Saul