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Home My WebLink About04/08/1996 Work Session (2) . City of Springfield Work Session MINUTES OF THE MEETING OF THE SPRINGFIELD CITY COUNCIL HELD ON MONDAY, APRIL 8,1996 The Springfield City Council met in Work Session at Springfield City Hall, Jesse Maine Room, 225 Fifth Street, Springfield, Oregon on Monday, April 8, 1996, at 6:45 p.m. with Mayor Morrisette presiding. Present were Mayor Morrisette and Councilors Ballew, Beyer, Burge, Dahlquist and Shaver. Councilor Maine was absent (excused). Also present were City Manager Mike Kelly, Assistant City Manager Gino Grimaldi, City Attorney Joe Leahy, City Recorder Eileen Stein, Administrative Aide Shari Higgins, Human Resources Director Frank Hotchkiss, Personnel Analyst Jack Lindstrom and members of staff. City Consultant Sharon Brunner was also present. 1. Non-Union Compensation Study . Mr. Hotchkiss introduced the City's consultant forthe compensation and benefit study, Sharon Brunner. He explained the last compensation study for non-union employees had been performed and adopted by Council in 1987. Mr. Hotchkiss reminded Council that an interim study report had been presented on September 18, 1995, and at that time, Council directed staff to include additional private sector employers and add a benefits component to the survey. The Council directed work was completed and the study was being presented for final review. Ms. Brunner provided information on her background with Hay Management Consultants the world's largest human resources management and consulting firm. She indicated that she and her husband now thave their own firm, Brunner Consulting Inc. Ms. Brunner reviewed the non- union classification jobs that were included in the study. Ms. Brunner explained their work with an employee steering committee and the questionnaire which was presented to each of the 45 non-union employees studied. Ms. Brunner gave detailed information on the process used to review positions and stated that the City has been provided with updated job descriptions, as well as compensation comparison data, classification plan information and recommendations for salary adjustments. Ms. Brunner explained the position benchmarking process and how 26 public and private sector companies were invited to participate in the survey. Out of the 26 contacted, 24 participated, which she felt was a very good response. She explained that in the study they did not match position titles, but job responsibilities instead. She said they carefully reviwed each position for title accuracy during the benchmarking process. Ms. Brunner stated the salary adjustments recommended in the study are base salary comparisons. She explained the benefits comparison was done based on "prevalence of practice" and they fould that the only real difference between benefits was vacation accrual. . Councilor Burge asked about benefit comparison information (attachment 3, page 35) regarding prevalence of practice for leaves. Ms. Brunner explained what types of leaves the study participants offered. . City of Springfield Work Session - 4/8/96 Page two Mr. Kelly explained why mid-management and management team members, as a rule, have a higher level of vacation accrual than others who were studied, typically due to the level of overtime they are required to work. Council discussed the leaves and benefits comparison information. Councilor Burge stated he would support the concept of administrative leave (vacation, sick and holiday leaves combined). Mayor Morrisette agreed with Councilor Burge. Mr. Kelly commented that compared to just the public sector, Springfield's annual leave policy is probably average. Mr. Kelly defined the average required work week for mid-managers as 45 hours per week as a minimum and for top-managers and management team members as 50 hours per week as a minimum. Ms. Brunner mentioned that private sector bonuses and profit sharing opportunities were factored into the benefits comparison data. . Mr. Hotchkiss provided the Council with background information as to why the City began picking up the employee's portion of their retirement contribution. He gave information on Ballot Measure 8, including the original intent of the legislation, the effect it will have on city employees, and the status of the court appeal process. Mr. Hotchkiss explained that Ballot Measure 8 was overturned by both the Lane and Marion County Courts and iUs being reviewed currently by the Oregon Supreme Court. Council discussed the options as presented in the agenda item summary and the impact that Ballot Measure 8 would have on city employees if the Supreme Court overturns the Appeal Court rulings. Mr. Hotchkiss reminded Council that upon the expiration of the collective bargaining agreements for the Springfield Police Association and International Association of FireFighters on June 30, 1996, that all non-union employees would also be required to begin making contributions to their retirement plans of 6%. Councilor Ballew asked if the study is equitable, when compared to larger jurisdictions with higher population levels with more mid and high-level managers. Ms. Brunner'stated equivalency codes were used to compare varying sizes of jurisdictions and private companies who were surveyed and actual job functions were factored, not just titles. o Councilor Burge clarified that option #2 of the staff recommendations would give non-union employees an average salary increase of 4.9% if Ballot Measure 8 is upheld and an average increase 00.2% if Ballot Measure 8 is found to be unconstitutional. Personnel Analyst Jack Lindstrom recommended that whatever option the Council decides to implement, be reviewed in six months or after a ruling on Ballot Measure 8 is made. Mr. Hotchkiss agreed, and reminded Council that they can review comparability either internally or by comparison to other jurisdictions at any time, but that any retirement compensation adjustment can not be made now regarding contributions in-lieu of Ballot Measure 8. . . City of Springfield Work Session - 4/8/96 Page three Councilor Shaver stated the study should be based on comparability, not assumptions. He suggested that Council make a prompt decision regarding preferred option of the classification and pay study. Councilor Shaver asked staff is Ballot Measure 8 is upheld, if city employees would be within the prevalence of practice, supposing option #2 was implemented. Mr. Hotchkiss replied yes, and that staff would present the Council with information concerning the validity of Ballot Measure 8, as soon as it can be obtained. Councilor Burge stated he preferred to make a recommendation regarding options at a future date and that he would like Councilor Maine present for any decisions made regarding the classification and pay study options. Councilor Beyer stated she is concerned that Council treat the City's non-union employees fairly. Councilor Dahlquist concurred. Councilor Ballew stated she would like more information from Mr. Hotchkiss regarding the study. Councilor Beyer indicated she also needed more information. . Mr. Kelly stated staff needs to know Council's preferred option before the budget process continues, as the preferred option figures need to be calculated and included in the 1996-97 budget. He suggested Council review this topic again at their April 22, work session. By consensus, Council agreed to revisit this topic at a future work session. Mr. Kelly explained that any increase given to non-union employees would be in addition to an anticipated 2.5% cost-of-living increase, effective July I, 1996. He reviewed the prcentage increases described in option #2 and stated that both the 3.9% and 4.2% figures are averages and that some positions will get a higher increases, some a lower increase and some would be red-lined or reduced, based on Council recommendation. Mr. Kelly reminded Council that another issue which will need to be addressed is salary compression. If it is addressed at this time, then some increases could be up to 8%. Councilor Ballew warned of hiring entry level positions at a higher rate than the private sector, providing the employee with training and then letting their salary remain flat. She felt that many good employees would seek private sector employment and higher paying positions. Councilor Burge asked if there are more management employees in the public sector. Mr. Kelly stated there could be, but that government has many specialty positions which make the need higher for qualified supervisors and managers. 2. Other Business . Councilor Beyer donated a 1914 Springfield Banner to the Springfield Museum for display. .... ~.,.. . . . City of Springfield Work Session - 4/8/96 Page four ADJOURNMENT The meeting was adjourned at 8:05 p.m. Minutes Recorder - Shari Higgins ATTEST: ~~ City Recorder 13#?l/~ Mayor