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HomeMy WebLinkAboutPackets - Council Packets (1217) AGENDA ORO VALLEY TOWN COUNCIL STUDY SESSION DECEMBER 8, 2003 ORO VALLEY TOWN COUNCIL CHAMBERS 11000 N. LA CANADA DRIVE STUDY SESSION - AT OR AFTER 4:30 P.M. CALL TO ORDER ROLL CALL 1. REVIEW OF COMPENSATION AND BENEFITS STUDY ADJOURNMENT The Town of Oro Valley complies with the Americans with Disabilities Act (ADA). If any person with p a disability needs any type of accommodation, please notify the Town Clerks, Office at 229-4700. Posted: 12/03/03 4:30 p.m. Ih TOWN OF ORO VALLEY COUNCIL COMMUNICATION MEETING DATE: December 8, 2003 TO: HONORABLE MAYOR AND COUNCIL FROM: Jeff Grant, Human Resources Director SUBJECT: Compensation and Benefits Study SUMMARY: On April 16, 2003 the Oro Valley Town Council adopted Resolution (R) 03-34 approving a contract with Public Sector Personnel Consultants (PSPC) for a Compensation and Benefits Study on behalf of the Town. Following the adoption of the Resolution, on May 6, PSPC conducted meetings with Town employees to discuss the project. Subsequently, all employees were instructed in filling out"Position Analysis Questionnaires" (PAQ's). Following a"buy-in"by the Department Heads over the accuracy of the PAQ's, they were ultimately used as the basis for new Class Descriptions for all Town job classifications. From June 2- June 5, PSPC personnel interviewed 120 different Town employees at their work sites to corroborate the data included in the PAQ's. By combining the data in the PAQ's with the interview feedback, PSPC then completed Class Descriptions for all Town employees during the balance of the Month of June. In addition, using the information from the PAQ's and the interviews, PSPC was also able to begin the work of gathering the salary survey data for the development of their final compensation plan recommendations. During the remainder of June and early July, salary structure information for the selected jurisdictions was obtained and compared to Oro Valley data for the benchmark classifications. In short, PSPC has delivered a work product which was consistent with their original scope of work (i.e., they provided a classification plan, salary survey data pursuant to the original labor market definitions provided by the Town Council and Department Heads, and a recommendation for various key elements of a proposed compensation program. Upon the Town's receipt of the consultant's final report, and subsequent presentation to the Town Council, Department Heads were requested to share the information with their respective organizations. Subsequently (during September), meetings were held with the various Departments and Divisions by Human Resources. Employee feedback was solicited and received. A summary of the feedback which was received follows: Most of the employee feedback focuses on individual employee reactions to the consultant's recommendation regarding their own classifications. In those situations, the employees have complained that the consultant did not classify their positions correctly. (PSPC acknowledges that they have never had an employee complain that their classification was "too high.") We are certainly free to react to those employee-recommended changes that appear to be warranted. Other comments were focused on the feeling that salary survey data was "in error." In one instance members of the Police Department had contacted jurisdictions included in the survey data, and discovered that the midpoints reported by the consultant differed from those reported by the jurisdiction. Quite simply, because of the delays Page TOWN OF ORO VALLEY COUNCIL COMMUNICATION Page 2 of 4 in the implementation of the project, the timing of PSPC's efforts necessitated that they obtain survey data in late June and early July. Many of the jurisdictions that were surveyed changed their salary structures effective July 1, and by the time the Police Department conducted their analysis (August), most of the new salary structures had been implemented. It should be stressed that no survey can be conducted in a totally"real time" manner, and there will normally be some degree of"lag"time. As an example, the League of Arizona Cities and Towns requests data that is effective October 1 of each year for their Local Governments Salary Survey, but the data is collected from the jurisdictions as late as December. The report is finally published in Late January or early February. The most important element of the analysis of any survey data is the change that is observed from year to year. This is especially true as long as the data is collected at approximately the same time each year. No consultant can accurately produce"real-time" survey data in a cost-effective manner. In still other cases, individual titles were suggested by the consultant, and arguments contrary to those titles were made by the employees affected. As long as the titles are an accurate reflection of the scope of the position and the duties being performed, and as long as the position can still be surveyed against positions performing the same scope of duties in the market place, the title changes are acceptable. In other cases, employees feel that the labor markets are inappropriate. Unfortunately, for salary survey purposes, there is no cost-effective way to structure different labor markets for every individual position. Not unlike the Town's efforts in past years, the consultant must adopt consistent labor market assumptions for the majority of the Town's classifications. While the Town has maintained a consistent market philosophy for all classifications in past years, the consultant was able to define three distinct labor markets for three different types of positions. While some individual employees expressed concerns that their classifications were being compared to specific jurisdictions, the labor markets were selected for comparisons for all classifications. In short, regardless of the labor markets used for survey purposes, if the Town experiences high turnover for individual positions, we respond throughout the year by conducting"spot" surveys for the specific classifications and for the specific jurisdictions which have been experiencing the increased turnover. In addition to the general types of concerns referenced above, employees voiced concerns regarding the reasons that their positions were not "benchmark"positions in the consultant's report. In short, "benchmark"positions are those that are found in a majority of the surveyed jurisdictions. They are positions that have consistent duties and scope of work, regardless of jurisdictions. If positions in Oro Valley are unique enough, or the duties are of a significantly different scope than those in other jurisdictions, the position is clearly not a"benchmark." When that has occurred, the consultant has "linked"those classifications to other, well established benchmarks. In that way, even the non-benchmark positions can be equated to the benchmark positions in future survey efforts. (In addition, as mentioned earlier, in those instances where Oro Valley feels that specific classifications have become more competitive in the labor market, we will conduct focused"spot" surveys to determine our competitive stature.) Concerns were expressed that some of the higher graded classifications experience a reduction in the maximum of the salary ranges under the consultant's recommendation. This occurs because the consultant has recommended changes in the"range spread" characteristics of the salary structure. (Range spread is, quite simply, the difference between the minimum and maximum of a specific salary range, specified as a percentage of the midpoint of the range. Our current salary structure has narrower"spread" characteristics at the lower grades, and broader"spreads" at the higher ranges. The consultant has recommended using a consistent spread characteristic regardless of level. This has the effect of reducing the range maximums for the higher graded Page TOWN OF ORO VALLEY COUNCIL COMMUNICATION Page 3 of 4 positions (and accordingly raising the salary grade maximums for the lower graded positions). This can easily be corrected by increasing the salary grades of the affected classifications by one or two salary grades. In a few instances, employees complained that the consultant had compared them to the wrong labor market within the three options available. In one instance this appears to be a valid argument, and the consultant has made the appropriate change. Several employees commented on the Consultant's recommendations for"in-range" adjustments. There was an assumption on the part of some of the respondents that the Consultant is recommending that all of the options that were listed be used. That is an incorrect assumption. The Consultant has simply recommended several potential options for us to select from. In fact, the Consultant recommends that we select one. (One of the recommended options is to continue our current merit plan.) In short, this summarizes the majority of the employee concerns, as voiced. A listing of specific changes to the consultant's recommendations is attached. It is suggested that the Consultant's proposed plan can be adopted, with the changes as noted, and including the following: (1) The Classification Plan and the class descriptions prepared by the Consultant should be adopted,but that individual position descriptions may still be used to differentiate between different positions within the same classification. (2) The adoption of the "Permanent Salary Structure" concept is acceptable, although there was consistent employee concern that the Town would continue to utilize COLA increases as in the past. This can be accomplished by applying COLA increases to salaries (as in the past)but discontinuing applying the COLA increases to the salary ranges (as we have historically done). (3) Continue to use the existing merit plan (given available funding—as determined on a year-to-year basis). This would negate the use of the other, in-range salary adjustment methods (i.e., longevity pay, etc.). (4) Continue to use the step plan for currently eligible Police employees. (5) The salary survey techniques and labor market definitions utilized by the consultant should be utilized consistently in future years, but that a consistent date should be used that provides for an annual "snapshot"of the competitive market. (As stated earlier, competitive situations may necessitate specific, time-sensitive surveys throughout the year for specific classifications.) FISCAL IMPACT: As the consultant has suggested, employees who fall below the minimum of their salary ranges as a result of the adoption of the recommendations should be adjusted to the new range minimum with the adoption of the plan. This recommendation will cost approximately$25,000 for the balance of FY 2003-2004. Page TOWN OF ORO VALLEY ' COUNCIL COMMUNICATION Page 4 of 4 ATTACHMENT: Changes to Consultant's Recommendations 7 f )--- tcLLJ /1:— Jeff Gran\ Human Resources Director I ' /Ir1,-(41 i I 1 Chuck Sweet, ' own Manager The followinq changes to the consultant's final report are suggested as the result of employee feedback (subject to additional review and analysis): COMMUNITY DEVELOPMENT Parks and Recreation: (1) The Recreation Specialist title will be changed using the same survey values and salary range recommendation. (Future salary survey data will be reviewed for consistency.) (2) Human Resources will review the suggested title change for the Trails Coordinator with the Department Head. The other suggestions for this position will also be reviewed. (3) Human Resources will review the recommended salary range for the Pool Manager and conduct "spot" surveys if needed. Building Safety: (1) Human Resources will conduct a "spot" survey to determine whether the surveyed jurisdictions reported data for Chief Building Inspector or Building Officials. (2) Human Resources will review the suggested title changes for the Office Manager/Permits Manager position. (3) The Building Inspector III classification was merged into the Building Inspector II classification because in the words of the Consultant, there was no discernible difference between the two (other than longevity in the job). As this is a potential "equal pay" issue, Human Resources will review the class descriptions with the Building Administrator and resolve the issue. Library: (1) The Senior Library Associate classification will be changed to Salary Grade 47 in the recommended salary structure. A 15% differential between the Librarian and Senior Library Associate is maintained. Planning & Zoning: (1) Human resources will develop a recommendation to reclassify the Development Techs that work in the Planning and Zoning Division to Zoning Enforcement Technicians, with appropriate salary grades. FINANCE (1) The combination of the Secretary II and IV classifications will be reviewed further to ensure that there are significant differences between the two existing classifications to negate the suggested change. (2) Human Resources will continue to review the recommendation regarding Department Head and Division Head classifications. (3) The comment in the body of the Council Communication should alleviate this issue. HUMAN RESOURCES DEPARTMENT (No changes were made to the consultant's recommendation for this Department.) LEGAL DEPARTMENT (No changes were made to the consultant's recommendation for this Department.) MAGISTRATE COURT (No changes were made to the consultant's recommendation for this Department.) POLICE DEPARTMENT (1) The Consultant has redone the Salary Survey pages for the commissioned Officers and Sergeants to reflect the July 1, 2003 salary structures in place in the various jurisdictions surveyed. (2) Fountain Hills was deleted as a survey participant. (3) Human Resources will work with the Police Chief to determine how best to distinguish the multiple functions performed by the Oro Valley Property and ID Techs as compared to the similar classifications in the labor market. PUBLIC WORKS (1) Human Resources will review the suggestions regarding the Transit Services Administrator and develop a recommendation. H.R. will determine an appropriate salary grade and eliminate the linkage to lower Transit classifications. (2) The consultant has agreed with the request to reevaluate the labor market for Civil Engineers, and has redone the survey analysis. (3) The concern regarding the reduction in salary maximum for highly graded positions has already been addressed, and will be rectified. (4) The consultant will provide specific salary survey data for Civil Engineers. (5) The Public Works Director agreed to the split in the Civil Engineering Designer title. (6) The proposal outlined in the Council Communication should alleviate the concerns regarding combining COLA and merit pay. (7) Human Resources will review the proposal to create an additional level of Maintenance Worker. As long as there are distinct differences in job duties, this can be accomplished. (8) Human Resources will review the requested title change for the Streets Superintendent and develop a recommendation. (9) The Streets division concerns regarding the consultant recommendations for in-range pay adjustment options should be addressed in employee meetings with the employees in the Streets Division. TOWN CLERK DEPARTMENT (No changes were made to the Consultant's recommendation for this Department.) TOWN MANAGER Economic Development (1) Secretary IV concerns —these were already addressed in the "Finance" Department review. (2) Human Resources will review the data regarding the Economic Development Administrator position. Public Information (1) The Public Information Officer classification will be reviewed further by Human Resources. WATER UTILITY (1) The error regarding the Customer Service Representative position has been corrected by the Consultant. (2) The consultant agrees that the Engineering Division salary grades should be changed to: Project Manager— Grade 62, and Division Manager— grade 66. (3) The Consultant agrees that should the Town desire to make the change noted between Water Production and Distribution, the suggested change would be appropriate. (4) Human Resources will continue to survey local water utilities (Metro Water, etc.) for any future salary surveys for the Water Utility. (5) #4 should alleviate concerns regarding the lack of benchmark positions at the senior management level. (A local survey of water utility organizations will accomplish this aim.