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HomeMy WebLinkAbout187-03 RESOLUTION187-03 RESOLUTION NO. A RESOLUTION APPROVING THE 2004 CITY AND EMPLOYEE PREMIUM AMOUNTS FOR THE GROUP MEDICAL PLAN. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. That the City Council of the City of Fayetteville, Arkansas hereby approves the 2004 City and Employee premium amounts for the Group Medical Plan. PASSED and APPROVED this 2nd day of December, 2003. By:Mn SONDRA SMITH, City Clerk APPROVED: By: NAME OF FILE: CROSS REFERENCE: Item # Date Resolution No. 187-03 Document NOTES: 1 10.28.03 memo to mayor & city council Group Application, draft resolution copy of 2004 Proposed Police Step Rates copy of 2005 Proposed Police Step Rates copy of 2004 Proposed Non-exempt Pay Ranges & Hourly Rates copy of 2005 Proposed Non-exempt Pay Ranges & Hourly Rates copy of 2004 Proposed Exempt Pay Ranges 8 Hourly Rates copy of 2005 Proposed Exempt Pay Ranges & Hourly Rates copy of 2003 Merit Increase Salary Guide copy of 2004 Proposed Merit Increase Salary Guide staff review form 2 12.8.03 memo to Michele Bechhold 3 12.12.03 memo to mayor & city council 4 12.12.03 email to Michele Bechhold from HayGroup NOTES: attached Starmount Group DentaWision/Life Insurance Group Application, Group No. COF104 effective 01/01/2004 for vision only • • CITY COUNCIL AGENDA MEMO City Council Meeting of December 2, 2003 Md,eG1/ ifiefiel Agin 5 TO: THRU: FROM: DATE: SUBJECT: Mayor Dan Coody and the City Council Hugh Earnest, Chief Administrative Officer Stephen Davis, Finance & Internal Services Director, Michele Bechhold, Human Resources Director October 28, 2003 Pay Plan Adjustment Recommendations RECOMMENDATION: Adopt Hay's recommendations contained in the 2003 Compensation Practices Update; with an implementation plan to adjust the pay structure by 50% of the Hay recommendation in January 2004 and achieve full implementation in January 2005. This action would result in the following percentages of increase to the various pay structures for 2004 and 2005. Non -Uniformed Employees Police Department The salary survey showed the Fire Departmen 's pay ranges were very competi ive to the market. On average, the overall pay structure is .2% above market. Based on this data, Hay did not recommend any increase to he pay ranges for the Fire Department. (See Fire Pay Comparison Chart, Appendix C of report.) Coordination of this Decision with Group Medical Premium Amounts When the renewal of our group benefit plans came before Council, Staff asked that any decision regarding funding the premium increase be made concurrent with any decision regarding possible pay range adjustments. If pay plan adjustments are approved, Staff recommends adopting the rate structure below to fund the increased medical premium. 2004 City & Employee Monthly Premiums NonExempt Exempt Executive Officer Sergeant Lieutenant Captain % of Structure Increase 3.95 3.1 7.8 3.4 1.8 3.05 4.4 The salary survey showed the Fire Departmen 's pay ranges were very competi ive to the market. On average, the overall pay structure is .2% above market. Based on this data, Hay did not recommend any increase to he pay ranges for the Fire Department. (See Fire Pay Comparison Chart, Appendix C of report.) Coordination of this Decision with Group Medical Premium Amounts When the renewal of our group benefit plans came before Council, Staff asked that any decision regarding funding the premium increase be made concurrent with any decision regarding possible pay range adjustments. If pay plan adjustments are approved, Staff recommends adopting the rate structure below to fund the increased medical premium. 2004 City & Employee Monthly Premiums The current rate structure is below. 2003 City & Employee Month v Premiums 2004 Individual 2004 Family City 182.20 408.73 Employee 8.26 54.52 The current rate structure is below. 2003 City & Employee Month v Premiums 1 2003 Individual 2003 Family City 173.94 373.26 Employee 0 49.80 1 BACKGROUND: For your reference, the chart below depicts salary survey results and pay structure adjustments, (implemented and proposed), since the new public sector methodology developed by the Oversight Committee has been in place. SUMMARY OF SURVEY RESULTS & STRUCTURE ADJUSTMENTS Employee :' Changes Changes Ir Changes 1s 2n° Total Group Recommended .; Made i Recommended 1; Phase ;. Phase Adjustments For 2003 1 In 2003 I, For 2004 Iof of NonExempt 0 Exempt Executive 11 Firefighter 18 Fire Captain 11 Battalion 9.4 Chief Police Officer Police Sergeant Police Lieutenant Police • i 4 Captain 13 11 :1 1' Change II Change li 2004 ' 2005 JL ---------'t - ----- 0 7.9 3.95 3.95 7.9 '0. _;;6.19---JL.1- .•3..09 ,L6.19- 0 15.6 7.8 7.8 15.6 11 9.4 ' 0 .;0 li 13 6.8 3.4 0 0 0 11 3.4 19.8 I lly 13.6 -- � �1$- ! 1.8 117.6 LI it_ .. 11 6.1 3.05 3.05 17.1 1`4 8.8 jr4.4 ' 4.4 --"I12.8 _I DISCUSSION: Staff's recommendation and two other possible options are presented below. Both Options 1 and 2 result in actual increases in base pay for all uniformed police employees on January 5, 2004. For the non -uniformed sector, Option 1 results in less than thirty employees receiving an increase on January 5, 2004 due to the pay range adjustments. The movement of the pay ranges under Option 2 would create an increase in pay for less than eighty non -uniformed employees. Option 1: Phased - In Implementation Staff is recommending a phased -in approach to implement the survey, in order to more closely match increases in personnel costs with projected revenue streams. Key considerations in developing this recommendation were to present a plan that would allow the City to contain costs, while at the same time maintaining our systems and remaining competitive in the market. By phasing in the structure increases over a two year period, the City is able to minimize the associated costs, provide partial benefit of the survey to employees, and make incremental adjustments to maintain our position in the market. When the pay ranges are adjusted in January 2005 to complete this process, we will achieve our policy goal of setting our pay range midpoints at average market pay, as determined by the latest salary survey. If labor market conditions remain constant, this option generates very little risk for the City. We would not expect any measurable increase in tumover directly attributable to a phased in approach. 2 • • Option 2: Full Implementation Council may wish to consider adjusting the pay ranges by the full amount Hay has recommended to meet the average market pay of the survey group. The City's practice in past years has been to implement the full recommendation in one year. Implementation of the survey percentages across the board would allow the City to be consistent in this practice. For non -uniformed employees, compensated through a merit pay system, this option provides the greatest opportunity for supervisors to reward employees for performance at their review date. The downside of this option is that all implementation costs are incurred in 2004 and these costs are a factor for 2004 and 2005. Option 3: Delay Implementation - 2.5% COLA on Anniversary Date This option does not correct any of the differences between the market and our pay range structures. It delays, but does not eliminate, the costs associated with maintaining our pay ranges. This approach achieves short-term cost savings. Savings would be generated by two separate actions. One, no changes would be made to the pay structures in 2004, and two, the City would suspend merit and step raises for 2004. In this scenario, employees would receive a 2.5% COLA on their anniversary date instead of a merit or step raise. This approach creates the greatest potential risk for the City. By utilizing the COLA process, the City would be setting aside the systems that have been developed to administer base pay. Considerable funding and staff hours have been invested in the process of fine tuning our existing systems. Abandoning these systems would be in direct contradiction to the City's goal of building and maintaining trust and confidence in our compensation system. By disabling the merit pay system for non -uniformed employees, supervisors would lose the mechanism to reward individual performance. In the assessment of downsides and possible negative effects, it is reasonable to project that the elimination of the incentive to perform would have a negative impact on organizational performance as a whole. Of the three options, this situation is the one most likely to set the stage for a potential increase in turnover and the associated recruiting, hiring and training costs. Merit Budget Staff is also recommending that the City adopt a revised merit matrix, one that yields approximately 3.0% - 3.5% increase to non -uniformed base pay. According to Hay's market data sources, public sector employers are projecting merit budgets to be approximately 3.3% for 2004. The 2003 and proposed 2004 Merit Increase Salary Guides are included as an attachment to this document. BUDGET IMPACT: Option 1 The 2004 Proposed Budget includes the funding necessary to implement Option 1. The immediate cost to accomplish a 50% structure increase for 2004 is $149,999. 3 • • Option 2 The immediate cost to fully implement Hays recommendations in 2004 is $306,656. The Proposed Budget does not include adequate funding for this option. To fund full implementation, an additional $156,657 over the budgeted amount would need to be allocated. Option 3 " This option generates a cost savings in comparison to implementing structure increases and continuing to administer the merit and step increase plans. The cost of the COLA is $379,049. The savings of this option as compared to Staffs recommendation is approximately $231,156. This savings represents the difference between the cost of implementing a 50% increase to the ranges and continuing our normal merit/step increases; and the cost of the COLA alone. " The cost figures for Options 1 and 2 reflect only the costs to adjust the pay structures and do not include any costs associated with merit/step increases. Elimination of the merit/step increases generates the savings amount referenced in Option 3. Medical Premium Increase As previously stated, Staff is proposing to fund the increase in the medical premium by increasing both the City's and the employees' share if Council approves Option 1 or 2. The 2004 Proposed Budget includes funding to cover the increase to the City's portion of the premium based on the cost sharing arrangement on Page 1 of this memo. Staff is available to answer any questions you may have. Attachments: Proposed 2004 & 2005 Police Matrices Proposed 2004 & 2005 Nonexempt & Exempt Matrices 2003 Merit Increase Salary Guide 2004 Proposed Merit Increase Salary Guide 4 • • RESOLUTION NO. A RESOLUTION ADOPTING THE HAY GROUP'S RECOMMENDATION IN THE 2003 COMPENSATION PRACTICES UPDATE; IMPLEMENTING 50% OF THE RECOMMENDATION IN JANUARY 2004 AND THE REMAINING 50% IN JANUARY 2005; AND APPROVING THE 2004 CITY AND EMPLOYEE PREMIUM AMOUNTS FOR THE GROUP MEDICAL PLAN. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. That the City Council of the City of Fayetteville, Arkansas hereby adopts the I -lay Group's recommendation in the 2003 Compensation Practices Update. Section 2. That the City Council of the City of Fayetteville, Arkansas hereby adopts City Staff's recommendation to implement 50% of the recommendation in January 2004, and the remaining 50% in January 2005. Section 3. That the City Council of the City of Fayetteville, Arkansas hereby approves the 2004 City and Employee premium amounts for the Group' Medical Plan. mom. PASSED and APPROVED this 18th day of November, 2003.. 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V N 01 _ a+ J + 10 (0 Fel m A (T V W N 0) a N N 0 a N W IT W N CO W N W a V J 0) + (T V W (O CO a N N CT -4 0 -4 'n.. O) W W CO a 0, (T 0) A A 0) W a s O) N V CO (O (D W O 0) 0 0) a CO CO YEAR 10 _ _ N— a N (D — 0 A 0) O 0) N 0) t. N O 0 a CD co co a N N CO V N+ O 10 to to W N A N {Co ,J a -6 a N CO N W W a N W w V V A W _ a KJ tD N N 0 N N N 0100-' J Co OI {AT + 0) W W 01 A+ N Co — N -6t' KJ N (T 0) a W CO m V O U N 00 tWp N (T 0 A 0) W -• w j 0) (T CO 1 YEAR 15 N N A N X+ — O N (O A 0) N a J N N 0 0— V -41:00000 a TI 0 O) 0o N+ — (O O a, V A CD a a A N CO W UI V O N W W N A 0 10 A 0 V 0 N V 0 (T — N 0 WK./WTI/3N a A D D a V 0 a J (0 a N 000000 co m N 000'O a N m 01 O N N U (T ' 10 V w 0 O N 0 0 W W 10 + OI 0 0 CO YEAR 20 2004 PROPOSED POLICE STEP RATES N a 0 0 7373 N N N O N CO A O O o r m n 0 zJ o r OAO Xc 00 a ~ ppD vD r - v cD 2< jD M m v< N + { II 0 tXtn 0) m ° on az.m O-1OX -I m 0-a {tij tvvD Qp ' r - D x < m m v< + N + > + w co W CT A N N N O) fap A V+ + 0) N J CTT 0 r m O -n m A O) v N N 0) OA -1 -D_v > r <<AD D D D m m N + a+ (0 pVp O N O) (WO N V 0 fXfni 00' m w MO,C xO r r x<{ v< { _ V- A+ W 4.1 a W (D 0 r m Nm m z1 D -i D N v N CO CO O MI 0 -o tXmI r (Dn m r II m m c aE m z O-1� -0 O % 0 r N <gpD - v D -71 D D xo << m m -0< N + { i N N a N IO O) + O A Co N+ O m O O ( A4r t 0) OV (T A O A o a) o fxfni '-c r uwi x m m— 0 0 D m13 bp D_ 2 p0 > ti 1- < D D m N N A O W O) CT CD STEP A N A ) (T A'V 0O 't V 9b (D CO co CO m o NOO CD T V-Ap V A o Si NJCObN .01 O• p rn O A N N in (0 + cm "Ka m a STEP B w + i J N N O O O O a V 0 0 0 A + ((0 '0 (NT a co a a a CD v VI CCOO I9NO W A (O.) a a ro N W 8 NJ N (O poin iv d N CO N O O O O O m U W O STEP C + w p V O) V 0) (NO (OT m (D Co A w a o 0 o A + N N O N+ V+ ( p . w L'' (Oi V m A + N V a N -4 0 (OJ N (moi( D�i r:) �, ;co CO O 0, STEP D 1 _ _ + W+ m J 100tpp3 + O) N N f Cr) 0 0 + N Si N 0 A W O (T W V V (T 0) N a (�O + V+ A + N m N N N co i0 01(.44)47010 ( T O W A N a 0 N CO (D O + S STEP E _ W N+ a N CO (D O CO N O O O) N W+ N V W V N V O N N J (D CO W N A + _.W ++ AV J (D CO O N w O) W N co CO N O OV (ND t0J io N A pAa N N A A N A A N co N A O j lo m N N co a co OV + O NJ IJ N (T U W O Of a N 0 (O V (O (D (D V (O WI N O V W O O) W 0) O w A"co N 0) STEP F _ _ a a+ A N CO 0 O co 10 V (OT in V O) pN A-• W W N A W O O0 N O O O) N 00 + to V (WT J (O 0) W CT a a a W- CoAN 00) 0 IJ O (T J N 10(pD co W N co o -4a N (T (T _ g V N CO O a N pN �'') C) 10 (in (40(.7113) + N Cr) W (O + I STEP G a N !D A V CO O N (D J (D w W (D co 9 co V 0) N V W O+ A NJ a S O (O (AJ O U CO V N+ CO O N (T V V 0) > + CO (T O) O++ a N N N (T N-• (T W N+ V CO A O) (D (J CJ a O) U V (T W N ID O CT b CO N _ 9 a N N T 0) N O CO m CO (O W V A a N a V 10 O W O O) N W N b V+ CO W O N 01 + CO a N O YEAR 10 + N + N N a W N N O N O 01 N 3 AJVN (D w (T + 0) w W V CO CO a 0+ A N CO O t0 A O) (O N W N V+ N Cr)O) (D a 0) V 0) CO N O N N (T j+ N A W Al IJI O(NO (n %) N p O O) N 0) W CO + N N CO J CO OO N a V p N (3) (D 10 A N N N N 10 CO O W 6 V N W m N V N N IYEAR 15 _ (AJ N N a C.) O A 1.4000001 A (0 a O CT O V O (OJ 9 N N N a j++ CD a _ N -a _ O A N (0 ( O 01 (D W A 0 W CO CO O) N N (NT _ N N N 9 in co O 01 A a V 9 A A '0 O W co W W CT W (OD O _ N N N 0) V OI N (D V a a N O) A co ppN oe W m V N (O N N co W 0) W CO + CO a+ 1 YEAR 20 2005 PROPOSED POLICE STEP RATES • • N N N A J O N (D N (r (71 O O z z z z z z z z z z z z z z Z Z Z Z z z 000 000 00M> 00W> 00M> N N N-4 N N N ND N N N N W N N N W W co 0 N 4 - O O A W N a) W N A O (D Co Co W W N O -4 co al .4,4-6---46 0JONA MI -46--4 W O N W O J A n00) W N N (O O W O 0)00-4 N N N N --4-4-.1---4 _._. a N N N N (1 (J1 N V1 N N N N N N N N co co co N co co co W A co co co al A co (D co J W N O (D W (n A W O (D CO J (n U1 O (n A d A A *44-45.-4,4-4s W W W W W W W W (OD (OD (OD (OD 0 0)) cn CD CO W W W W CoNcoNcoo co O O O O co N N N - (D CO J 6 -Co -COM - A J O m N at N O - O CD (O V1 -J J co J J Co Co Co (D O N Co co co A W N O A W 0 O J O W CO N N N V1 - O O W (D Cn N N W 0 W O O Ca • 0 cnn (D J V1 A Co O) D N (n (n (n (n N N N (D (n a J W (D W A W O A A A co CO -k O O ((Wn0 V_O A Ut A A A co co V W (O N_ N O Co (D O A A A A J M a1 A J N W N N a1 (O N J J J J CD - N (n (n N Co A O Co Co co co - N W A W V W O N N D1 (n 0 O Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z 00M> OC)W> OOw> 00M> 00M> N A W N ? ND v (D (n N (O W co co co co N - J W V1 O W a) a) N N N N A A A A N N O O W J Q A N (D N N W 0000 a- ) (n A co N A Q) J J A -D Co Q) O W W 00-40 b)-0)-0-0) 0000 0000 N N N N -u O (D 6--46A A J O co Co Co W co J ▪ O) (n A O N A W W W co O A A A A N O (D CO V (71(71010) (D (D (O (D a1 a1 al N N N N N A N -iO O (D J N (D N N W 0)000 CO J a) V1 W -4:4 -CD -Co N (D O W N N N N -+ O CO O 000 J V J V A A A A N N N N N A W N 6M -4,4W N N W 0 00)0)0 (O (D Co J (D NJ N A N N (D W J J J V N N N N A W N A O O O 01010101 N N N N W W N A Co W (D N N N N N J J W Q) -I J J O) CO J J -I Co Co co J (D (D CO Co A O N Co A O a) N_ -4 Co A O Co A O _W (n V Co co co co co N N N N N N O O O (D (D (D N co A A N a) J co co (O O -s CO CO O s (n a) J Co 0 v cn v 0 O n m Z 0 K Z 2 X r 0 0 v s3av a80 Z K Z 2 r r { 2004 PROPOSED NON-EXEMPT PAY RANGES AND HOURLY RATES • • N N N A CJ1 CO Cn N W O O ZZZZ ZZZZ ZZZZ ZZZZ ZZZZ 0003> OnW> 0000> 0nW> 00M> N N N N N N N N N N N N W (J W N W W W W N O U A W N J J W W -A000 (T A W N J (D O N N A W Co W -CD --I W Co W ID -I O N W W A p0 (Jt (00)100 W O J A 0)100J N N (0 O) A A A A (O (O CO (O 0 0 0 0 J J J J N N N N J W O A A A A A O O O O O N N N W N N N O (O W J A A A A - AL -5 10101010 WN -i0 A W A A 0101010 cnv scn AAAA (P010101 AAAW 10101010 J J J V W W N N W W W W W W W W AAAA AAAA N O (O W N A W N D W O) W A W N COM -.4th O W J (n OI A ca— N O (O J W A N AI A N O (O W (O N (n (n W A A J O W N in W A V O O O O O -+ a N N N N (D CO (O CO J J J J O - O O (O (O in — 010100 A U O J - J W CO ((00-L N W - N N N (0 (n Acom W O) m Ot A A A N W A O N N N N -I N W A MOWN (W A O O) CA CP CP A (n Of J O J CO O N 01 (n W O O ZZZZ ZZZZ ZZZZ ZZZZ ZZZZ 00W> 0nW> 0000> OnW> 00m> NAL AL AL (n - N A W O0101 A -40)0101 W W V T O (O W W (O N A J (O W lian Co (O -+ (0 O N A en J (0 la In N (O 0) (0000 A AL CO In N (O 0) W N (O W W O O O O (0 (D (O (D (0 (O (O 0 N N N N -a -A -L -L (D - W J O) _N N_ N_ N_ J J J J N O CO OD N N N AAAA 0000 N N Ak - O (D CO N N N 0)0)0)0) W W W W N N N N -+ O CO UD UD UD CD J J V J CO W CO W N N N N A W N COW OD OD AAAA AAAA N N N -A N N N N N N N N N N N N N N N N N-LO W WN -LO A W N -k ° M A W W J O) N A W t0 W (n W N J (n W W In (WQ+� O OD J (n CO-44-4 AAAA A W_ A i OVD OOD OWD OD A A 4A A W (0 N W W W W W J V O) 0) Z' -4-J9) W OD J J (O W W J 0 (O (O W W N W A O Co N D A O O) N O W N 0 (D N J MM -4J J J V W W W W W 0000 W (O O -I J W (D O u10) -J� -J00 A VIM -4 S3OV aaO std OHO Z 0 Z 2 r S]OV aaO Std aaD Z 0 Z 2 r r { 2005 PROPOSED NON-EXEMPT PAY RANGES AND HOURLY RATES • • J J CO (O 0 0 N CO CO 0 A A CO v N CO A CO m m m m m m m m m m m X x m o x x x x x x x x x o x O N 01 Ot O O O 0) 0) 0) O V O J J O CO O N A U (0 O (D la O V N O (D N b J V N V V CO (D (D O 0 0) O (0 O -6 N N 0) 0) J V O O CO A CO W CO CO J 0) 0) J V J J V J V CO CO (D N (D (0 O O CO 01 J O CO (9 0 0) i in O) Co A b N O W W b co N co 01 CO N 01 V Co Co Co CO CO 01 N N 01 0) O) W N (O 0 J CO Co CO Co CO CO CO CO (0 A N N 01 V 0 A • • W J b ( 0 0 A 0 01 CO N 0) N N A N N N N 0 ( J J V D J J (D CO Co CO CO O CO -4 OA N J 0)) coOm 01 (T -4 W (0 CO CO CO CO O (.4 N CO Co in N O Co A (0 J J CO 0) 0) CO CO O -s CO CO A Co (0 0 (0 N N N (D (D A J A A A 01 co O iJ iP iD co A N N 01 J Co N N CO A A 01 O 0 0 0 0 0 0 M m m 0 CO 77 W N N O 0) CO J O 01 N O O O 0▪ O A O 0 0 0 0 0 O O O A A CO Co O (D N (O J 0 0 0 A CO CO J (0 01 O O 0) A O J M m m o CO 73 Q O1 P O O O O O N co • N N N -6 O No N W o A (0 J M m m 0 w 73 01 01 01 A N -s OI W J 0) O CO CO m m m 0 Co 71 (T A A O W O W 0 A A O O O 0) CO A (0 -CO -CO -CO 0 0 0 V V V J Cr) (T (D CO W (D N A a a M m m o Co 73 (T A A O CO CO (T O O CO 0 0) 0 0 0 Q 01 (T O CO J <O 0 (0 0 0 0 A A A J 0) CO CO J CON<D a Co CO Co m m m o co X 01 01 O O 0) CO - 6 A 0) - 01 N N N N N CD O CO 0_0_0_ A A A co V O CO fD (T 0 0 0) 0) N N(o N N N N N N CO J J A CO O A W CO V V O O CO A iT ib Co iJ 01 -• O -+ J A CO CFI 0) O J 0 0 0 W A A CO O CO 01 01 CO CO O CO O N N N 01 A (0 N A O A N 0) CO CO O N N N CO J J O O W CO A CO CO O)W N N -6 01 N -6 N v 01 A N 01 N 0 CO N 0 0 S3DV aaa Z AIaH XVW AIaH New AIaH XVW AIhH NIW 2004 PROPOSED EXEMPT PAY RANGES AND HOURLY RATES • rn rn V CO (D V CO O CO CO 0 ✓ N N N (0 A m 0 mx 0 0) 0) A w _J O V • 0 o v CONA ▪ CO 0 0 v 0 n y m m mm m m m m x m m u o x x x x x x x x 0X x„ m S6L'SL 31.171Z9 9L619L 290'£9 OLL'8L 61£'99 CO N N CO W CO 0 (0 (D 0 0 CO A A (VO O W U co O O CO O 0 0)) 0)) O (0 N W 0) V CO O N O) £LSte S£L'89 CO O) O (D N O -4 0W) CO 0 b V N O CO V V O U A U O O U U L00'£OL 964'S8 (D O O N (O A O 0 W W O U CO V 0) A 0 0 CO CO Co CO A W U A CO U W V (0 t0 0 (0 O CO A A A A A A U 0 0 CO 0 N V _W O t0 (O N CO A N V CO N U V W N N W A A U O 0 0 0 O CO M m m O w 73 CO NI NJ O 0 CO (O N CO V A N N N M m m 0 w 73 A N CO CJ O O CO CO CO W O CO Cu W W (O (D (0 U U U M m m 0 w 73 A A A U A "in Cn "Ln co co CO V V -4 M m m v w M m m 0 w A A A j A A A N N 0 O O 0 • A O O CO V A CO N (O V V V (O (D (O (41 U W O v v v -4 V -4 (O (0 (D M m m 0 CO UO V 0U) 0 U V CO OD CO A A A A A A U U U 0) O U V V CO CO CO V CO -a O CO O A U CO N N O 0 N O (O W-• O O N O A O (O O W O U A (n N O A o (D O 0) co CO CO N V W O N co co A V A O CO N N N N N N V V V CO O CO A A co CO 0 in V V V W A O CO O O O W N O W U 0 CO O U U in v u N N O O -+ N N N N — WN o U A (OO V N N N U A co Cn ? (7D A N O CO W (710101 cO U A O V CONJ NI NJ CO CO CO Co) V V W N-' CO V O O V N U N U 0) CO V V (n (O U N CO W A (O A N O U N 2 0 AIZIH XHW A1HH NIW 0 0 O 13 1 U 0 0 0 cnm 2 0 Al2IH MN AlHH NIW 2005 PROPOSED EXEMPT PAY RANGES AND HOURLY RATES • • CO W o CD CO o CA -aUp o Q O (D (D J A C CD N O 0 _. b 0 CO O 0 CO O 0 (A O 0 Ui o O b O CO O O O O U) U) O A O O CD O 0 J O 0 0) O 0 CT O 0 4.0 O o b (D O 0 N O 0 m O 0 U) b 0 4.0% CO U) OD 00 0 V 0 Ut 0 0 a b 0 W 0 0 3.0 ARE BELOW o 0 0 o 0 0 0 o 0 0 0 0 0 0 0 2.5 o O 0 o b 0 O O 0 O O 0 O o 0 N 0 O O 0 O O 0 O O 0 O O 0 O O 0 O o 2003 MERIT INCREASE SALARY GUIDE • • CO CO o CD co 0 O O O -4 T m T 0 D z 0 m 2004 PROPOSED MERIT INCREASE SALARY GUIDE CD O O CO O O 01 O ) 01 Oo (71 O O O O t0 OO 0 O 0 v O 0 0) e 0 01 o 0 A c O 0 �I O 0 CO O 0 C71 Cl1 0 a C71 0 4.0 �1 O 0 0) O 0 01 O 0 A 01 0 CO (71 0 W • N SCORES ARE BELOW 0) O 0 U1 O 0 A O 0 0) o 0 N o 0 C.J O O OO 0 O 0 O O 0 O O 0 O O 0 O O 0 o O 0 O O 0 O O 0 O 6 0 N •O O O 0 O O 0 O O 0 O O 0 O O 0 O O T m T 0 D z 0 m 2004 PROPOSED MERIT INCREASE SALARY GUIDE XX AGENDA REQUEST CONTRACT REVIEW GRANT REVIEW STA! REVIEW FORM - FINANCIAL OBLIGIPoN tCewdcn- c27 ol023 For the Fayetteville City Council Meeting of: Novcmbcrl8; 2003 FROM: Michele Bechhold Name Human Resources Finance & Internal Services Division Department ACTION REQUIRED: Adopt Hay Group's recommendation in the 2003 Compensation Practices Update; with an implementation plan to adjust the pay structure by 50% of the Hay recommendation in January 2004 and achieve full implementation in January 2005. Approve 2004 City and employee premium amounts for the group medical plan. COST TO CITY: $325,088.00 $ Cost of this request Category/Project Budget Program Category / Project Name Various $ Account Number Project Number Funds Used to Date Program / Project Category Name $ Various Remaining Balance Fund Name BUDGET REVIEW: 2001 ✓ Budgeted Item Budget Adjustment Attached 17- S-6 T Budget Manager Date CONTRACT/GRANT/LEASE REVIEW: Accounting Manager n J City Attoryicy Date X11 5;4 Date Mew_ c=4., -1--e. Internal Auditor II (5(03 Date os Purchasing Manager Date STAFF RE ND I � 03 Division Head Received in Mayor's Office Cross Reference Department Director Previous Ord/Resp: inance & Internal Services Dir. Date Orig. Contract Date: Orig. Contract Number: Chief Administrative Officer New Item: Date Date Mayor Date Date Yes No • • FAYETTEVILLE THE CITY OF FAYETTEVILLE, ARKANSAS 113 W. Mountain St. Fayetteville, AR 72701 TO: Mayor Dan Coody � 'brward `te, Cott -m..4 --Co FROM: Wage & Benefit Committee C)>p 3.T.ti DATE: November 14, 2003 SUBJECT: Implementation of Pay Plan and Proposed Decrease in the Merit Matrix The Wage & Benefit committee has carefully reviewed all data provided by Human Resources and Budget staff. We believe it is essential for pay plan conformance and employee morale that the full pay plan recommendations be implemented in 2004. It should be noted that a fully implemented plan would get employees to a 2003 average market figure. We recommend no change be made to the merit matrix, which was adjusted with input from the committee for the 2003 calendar year. We feel the 2003 matrix is working well. The amount proposed in the 2004 merit matrix budget shows a decrease of $41,500 from the 2003 merit matrix. The committee feels this amount should not significantly impact the 2004 budget, but could negatively impact the 427 city employees on the merit system. The employees are the City of Fayetteville's most valuable assets. Since 1989 the city has been able to implement the pay plan fully. This committee was given the task of evaluating the proposal for fair compensation to both civilian and civil service employees. This fair compensation as noted by the extensive study performed by HayGroup recommends the following: • Increase Non -Exempt midpoint policy by 7.9% • Increase Exempt midpoint policy by 6.19% • Increase Executive midpoint policy by 15.6% • No Increase to Fire Department Salary Ranges • Increase Police pay ranges by approximately 6.6% overall It is important to maintain a plan that rewards all employees equally. The committee respectfully submits this recommendation for your consideration. FAYETTEVtLLE THE CITY O1 FAYETTEVIIII, ARKANSAS DEPARTMENTAL CORRESPONDENCE To: Michele Bechhold Human Resources From: Clarice Buffalohead-Pearman City Clerk's Division Date: December 8, 2003 Re: Res. No. 187-03 Attached hereto is a copy of the above ordinance passed by the City Council, December 2, 2003, approving premium amounts for the Group Medical Plan. The original resolution will be microfilmed and recorded in the city clerk's office. If anything else is needed please let the city clerk's office know. /cbp Attachment(s) cc Nancy Smith, Internal Auditor Michele Bechhold - 2002 vs 2003 Vari s - Page 1 j From: <Jodi_L_Francis@haygroup.com> To: "Michele Bechhold"<mbechhold@ci.fayetteville.ar.us> Date: 12/12/03 11:37AM Subject: 2002 vs 2003 Variances Michele, We completed a review of the variances in the market data between 2002 vs 2003 for Police Officers. As we discussed in our telephone conference with Mr. Marr, the variances appear to be caused by the shift in participants. Below is a summary of our findings: Survey data for participants that participated both years increased approximately 2% at the range minimum and 1.4% at the range maximum (these variances ranged from 0-7%) The average salaries for the cities that were added this year were approximately 6.5% GREATER than the average of the cities that remained in the database year over year and 10% GREATER than the cities that participated in 2002 but declined participation in 2003. Again, as we discussed, I believe that this wide swing in participants should decrease next year and in following years due to cities getting used to adding this to their yearly salary survey list and to it's increased use as another source of summary data. Hopefully, this information helps validate some of the information we discussed on Tuesday. If you have any further questions, please call me at the office or on cell phone (469/585-1394). Jodi Francis • • City Council Meeting of December 16, 2003 CITY COUNCIL MEMO TO: Mayor Dan Coody and the City Council THRU: Hugh Earnest, Chief Administrative Officer Stephen Davis, Finance & Internal Services irector FROM: Michele Bechhold, Human Resources Director DATE- December 12, 2003 SUBJECT: Additional Information Regarding the 2003 Salary Survey Results Jodi Francis, our Hay Group consultant, has provided additional information about the variance in the Police Department salary survey results as requested by Alderman Marr. Her response is attached to this memo. Staff is available to answer any questions you may have. STA♦NT GROUP DENTAL / VISION / LIFE AGROUP APPLICATION Underwritten by Starmount Life Insurance Company 7800 Office Park Blvd., Baton Rouge, LA 70809 PH: 1-888-729-5433 FAX: 1-888-729-7827 Group No. C,oP 101 t illegal Company Name City of Fayetteville Phone( 479 )575-8292 Mailing Address 113 W. Mountain Fax4( 79 ) 718-7698 2111. a7 -o3 ivi1CROFILMED Physical Address SAME City/State Fayetteville, AR SIC Code Contact for Administration & Eligibility Bonnie Pay EMAIL ADDRESS bpay@ci. faye tteville.2 r. us Zip Code 72701 Phone ( 479 ) 575-8292 Contact for Billing Bonnie Pay Phone ( 479 ) 575-8292 # Employees:669 # Eligible 619 # of Employees with Dependents Group Effective Date: 01 / 01 / 2004 A check for the first month's premium and other applicable fees must be attached to begin processing. Eligibility data will be submitted using: ❑ Starmount enrollment forms 0 Email or electronic media We elect to otter the following coverages to our employees: ❑ Dental Insurance I Vision Insurance 0 Life Insurance Eligibility: Permanent, full-time employees working 40 hours per week are eligible for coverage (Standard: 30 hours). An eligible employee must have been actively at work on a full-time basis for 1 months in order to be eligible for coverage. An eligible dependent must be less than 1 q yrs. old or less than 23 yrs. old if a full-time student. (same as employer health plan) Participation: Depending on group size and coverage elected, specific participation requirements will apply. Participation must be met before the insurance can be effective and must be maintained continuously while insurance is in force to prevent cancellation of Ilicverage. nderstand and agree that audits will be made by Starmount Life Insurance Co now and in the future to verify the number and names of full-time employees of this firm. 1 will furnish with application, and upon any future request, a current census and State Quarterly Unemployment Tax Report, and any other information requested. Monthly Administration Fee:Jyaderstaa4ibereieameAihly-adaiieiekelweBilting-el4erge- Waived per Nick Meunier Value -Added Marketing: We authorize Starmount Life Insurance Co. to send value-added marketing notices to those employees enrolled in this program. Such marketing materials will offer additional, insurance products and will be mailed to each members home. ❑ Yes WNo Please send Membership Materials and Enrollment Materials to (CHECK ONE): a Group Attn: Bonnie Pay ❑ Broker or Agent Phone: ( 479 ) 575-8292 Under ERISA (Employee Retirement Income Security Act of 1974), it is required that there be a named fiduciary for each employee benefit plan. It is understood that the undersigned Employer is the named fiduciary for each employee benefit plan. I understand and agree if, on the effective date, an employee is not in permanent full-time active work or unable to perform usual and customary duties, coverage will not be effective until the employee retums to an active eligible status. I hereby certify that the information provided herein is true and complete to the best of my knowledge and that I have read and understand this form. The information contained herein describes the essential provisions of the elected coverage(s) discussed between the above client and an authorized Starmount Life Insurance Co representative. By signing this form, both parties agree that these are the essential provisions the client is purchasing. The details of this form may be changed by either party with mutual agreement. ANY PERSON WHO KNOWINGLY PRESENTS A FALSE OR FRAUDULENT CLAIM FOR PAYMENT OF A LOSS OR BENEFIT OR KNOW INCy1rY PRESENJ.. FALSE INFORMATION TO OBTAIN INSURANCE IS (IN TEXAS AND KANSAS MAY BE GUILTY) GUI rY OF A C AND MAY BE SUBJECT TO FINES AND CONFINEMENT IN PRISON. goad: // /a3 Name / / / Title Date Starmount Representative GRPAPP1 Date .MI elwaysVisionsm Insurancefor AlwaysVision City of Fayetteville for an effective date of January 1, 2004 Thank you for considering the AlwaysVisions"I insurance program! This plan's benefits are among the best in the industry. This program allows your Employees to access benefits at a nationwide network including Wal-Mart vision centers, as well as independent optometrists, opthamologists, and retail chains. Why should your Employees enroll? They receive a vision exam and eye glass lenses every 12 months, and eye glass frames every 24 months. As an alternative to eye glasses, they may choose elective contacts every 24 months. You receive your exam benefit at participating providers for a small S10.00 co -pay and materials at no co -pay when you visit Wal-Mart Vision Centers and 515.00 at other participating providers. Real, Repeatable Savings: With Wal -Mart's renowned "Everyday Low Pricing" and savings at many other participating providers Members receive real, dependable value on exams, lenses, frames and contacts. Most people who wear glasses purchase additional eyewear, from spares to reading glasses and sunglasses. With many participating providers, Members have repeatable savings: they benefit from lower fees any time they present their membership card for direct purchases, regardless of how much or how frequently they use their savings benefit. Members always benefit from Everyday Low Pricing at Wal- Mart. NVA Vision Benefit Summary (Comprehensive Plan) Vision Care Services Wal-Mart Vision Centers Other Participating Optometrists, OphthsImoloants, & Retail Outleb Out -of -Network Allowance 1 Exam S10 Co -pay 510 Co -pay Up to 530 Materials SO Co -pay S 15 Co -pay See bclow Standard Plastic Lenses: Single Vision Bifocal Trifocal Lenticular Progressive Lens Options: Scratch resistant coating Polycarbonate Lenses for children Covered • Covered Covered S80 allowance 550 allowance Covered Covered Covered by Co -pay Covered by Co -pay Covered by Co -pay S80 allowance 550 allowance N/A N/A Up to S25 Up to 540 Up to $50 Up to S50 Up to S40 N/A N/A Frames: Members choose from any frame available at provider locations. No Co -pay Up to 574 retail allowance, depending on plan selected. $74 covers two-thirds of frames available at Wal -Man. 5100 retail frame (retail amount may vary at some providers. Covers a wide selection of frames. Up to S40 retail Contact Lenses: (Includes fit, follow-up and materials) Elective Comprehensive Plan Allowance Medically Necessary No Co -pay Up to 5130 retail Up to 5210 retail Up to 5130 retail Up to 5210 retail Up to 5130 retail Up to 5210 retail Laser Vision Correction: 20% discount on Lasik or PRK real prices with participating surgery providers. Frequency Examination Spectacle Lenses Frames Contact Lenses Once every 12 Months Once every 12 Months Once every 24 Months Once every 24 Months Monthly Premiums: Employee Only Employee + One Employee + Family $ 8.62 515.52 521.56 Underwritten by Starmouat Life Insurance Company. 7800 Office Park Blvd.. Baton Rouge, LA 70809. Pbooe: 1-888-729-5433 • Fax: 1-888.729-7827 • www.slarmopntlife.com imitations & Exclusions This is a primary vision care benefit and is intended to cover only eye examinations and corrective eyewear. Medical or surgical treatment of eye disease or injury is not provided under this plan. Coverage may not exceed the lesser of actual cost of covered services and materials or the limits of the policy. Covered Materials that are lost or broken will be replaced only at normal service intervals indicated in the Plan Design; however, these materials and any items not covered below may be purchased at Preferred Pricing from a Participating Provider. In addition, benefits are payable only for expenses incurred while the Group and individual Member coverage is in force. This plan will not cover: Orthoptics or vision training and any supplemental testing; Plano (non- prescription) lenses; or two pair of eyeglasses in lieu of bifocals or trifocals. Medical or surgical treatment of the eyes. An eye exam or corrective eye wear required by an employer as a condition of employment Any injury or illness covered under Workers' Compensation or similar law, or which is work related. • Plain or prescription sunglasses or tinted lenses, and no - line bifocals and blended lenses (subject to allowance). Sub -normal vision aids. Services rendered or materials purchased outside the U.S. or Canada, unless: the insured resides in the U.S. or Canada, and the charges are incurred while on a business or pleasure trip. Charges in excess of Usual and Customary for services and materials. Experimental or non -conventional treatments or devices. Safety eyewear. Spectacle lens styles, materials, treatments or "add-ons" not shown in the Schedule of Benefits. Laser Vision Correction Network Membership provides access to Preferred Pricing. Transactions are handled directly between Members and Providers. Refractive surgery is an elective procedure and may involve potential risks to patients. Starmount cannot and does not guarantee the outcome of any refractive surgical procedure or a total elimination of the need for glasses or contacts. Providers may not be available in all metropolitan areas. How AlwaysVisionsM Works 1. Call (888) 729-5433 or visit www.alwaysvision.com to find a provider near you. 2. To schedule an appointment with your provider, please note the following: a. When calling a Pearl Vision Center, Target/Super Target Optical Center, Sears Optical Center, or JCPenneys Optical Center location, you should mention that your insurance is called AlwaysVisionsM as this is how these locations will locate details of your coverage in their computer systems. b. When calling an Eyemasters location, you should mention NVA-Starmount. c. When calling a Wal-Mart Vision Center, Wal-Mart Associates will verify your coverage by using your employer's name in their computer system. d. When calling any other location, identify yourself as an AlwaysVisionsM and National Vision Administrators (NVA) member. Most providers will recognize the NVA name. If, however, the provider does not recognize AlwaysVisionsM or NVA, please contact Starmount for assistance and we will work directly with you and the provider. 3. Present your card for Easy Access to your benefits at your Provider. No paperwork is involved; you simply pay your co -payment and any expenses that are not covered. *The contact lens benefit takes the place of spectacle lenses and a frame. ** Frame Allowance for Other Preferred Providers represents Wholesale Pricing. *** Lens Pricing based upon CR -39 Plastic Material. Glass lenses may have an additional cost. Wal-Mart Frames include a one year warranty and lifetime adjustments & cleanings (no cost). Wal-Mart Lenses include a one year warranty and lens replacement if your prescription changes within 3 months of your purchase at no charge. Members will be responsible for sales tax at Wal-Mart vision centers. Rates assume the greater of 25% of eligible employees or 10 employees participate. Each enrolled employee must stay in the plan for 12 months. Each employee enrolling in the Group Voluntary Plan must agree to remain enrolled during the designated plan period. Those employees who elect not to enroll during the initial plan enrollment period must wait until the next plan enrollment period to enroll. The plan enrollment period shall be the month prior to the beginning of the next plan year. Remember: Our network is constantly growing and changing. If you cannot find a provider on our website or need help locating a provider near you, please contact us. While we strive to provide the most up to date provider list for our members, it is possible that a doctor may no longer participate in our network. We encourage you to contact your provider to confirm participation prior to visiting their location. Underwritten by Starmount Life Insurance Company. 7800 Office Park Blvd., Baton Rouge, LA 70809. Phone: t-888-729-5433 • Fax: 1-888-729-7827 • www.starmountlife.com