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HomeMy WebLinkAbout001-02 OrdinanceRECORD OF ORDINANCES Ordinance No ...............01-02................................... Passed .................................................................., . ...................... AN ORDINANCE AMENDING CERTAIN SECTIONS OF ORDINANCE N0.98-96 (COMPENSATION PLAN FOR NON-UNION PERSONNEL) WHEREAS, Council has determined, upon the recommendation of the City Manager, that certain sections of Ordinance No. 98-96 (Compensation Plan for non-union personnel) should be amended; and WHEREAS, Council has determined that such amendments are necessary for the City to maintain a competitive position within the public sector labor market, thus aiding in the recruitment and retention of highly qualified, highly effective staff; NOW, THEREFORE, BE IT ORDAINED by the Council of the City of Dublin, State of Ohio, '' of the elected members concurring: Section 1. That, Section 2. ("WAGE & SALARY STRUCTURE/ADMINISTRATION"), subsection A. of Ordinance No. 98-96 be amended by reassigning the "GIS/CAD Technician" job classification (Pay Grade 5) to the following: Classification Title Pay Grade GIS Analyst 6 Section 2. That, in accordance with the requirement of Section 2.J. of Ordinance No. 98-96, Section 2. ("WAGE & SALARY STRUCTURE/ADMINISTRATION"), subsection B. of Ordinance No. 98-96 be amended by adjusting all pay ranges contained therein by 5% at the minimum and maximum of each range, reflected as follows: SCHEDULE OF PAY GRADES & RANGES PAY GRADE PAY RANGE 1 $23,010 - $34,515 2 $25,103 - $36,713 3 $27,387 - $40,054 4 $29,880 - $43,699 5 $32,814 - $47,675 6 $34,558 - $51,841 7 $37,704 - $56,556 8 $42,333 - $61,911 9 $46,184 - $67,544 10 $50,387 - $73,692 11 $54,974 - $80,397 12 $59,976 - $87,714 13 $65,434 - $95,696 RECORD OF ORDINANCES __ Dayton Legal Blank Co. Form No 30043 Ordinance No ................................................................... Passed .................................................................., ....................... Section 3. That Section 5 ("HOLIDAYS") of Ordinance No. 98-96 be amended by deleting paragraphs G. and H. contained therein and replacing them with the following: G. Should the Federal or State government designate a specific date or day of the week for observation of one of the above listed holidays, the City will generally follow that designation. For employees assigned to a Monday through Friday work schedule (Saturday and Sunday off), when a holiday falls on a Saturday, the Friday immediately before the holiday shall be the observed day; should the holiday fall on a Sunday, the Monday immediately following the holiday shall be the observed day. For employees assigned to other than a Monday through Friday work schedule (Saturday and Sunday off J, the holiday shall be celebrated on the calendar day on which the holiday actually falls. Section 4. That Section 10 ("MEDICAL, DENTAL, VISION, AND LIFE INSURANCE"), Paragraph A. of Ordinance No. 98-96 be amended by deleting the language contained therein and replacing it with the following: A. The City shall make available group medical, prescription drug, dental, and vision benefits to all employees serving in Full-Time Permanent positions and their dependents and to all Council Members and dependents in accordance with the City's Plan Document. Said benefits will be those described in the City's Plan Document and be made available with no contribution on the part of the employee or Council Member other than the required deductibles, co-payments, co- insurance, and annual out-of-pocket maximum identified in the Plan Document. The plan design for these benefits shall be the same as in the effect on December 31, 2001, with the following exceptions: Medical Benefits A separate prescription drug card co-payment shall be implemented for generic and brand name drugs. In 2002, the prescription drug card co-payment will remain at $5.00 for generic drugs; however, the co-payment for brand name drugs will be $10.00. Beginning January 1, 2003, the prescription drug card co- payment shall be increased to $8.00 for generic drugs and to $15.00 for brand name drugs. Dental Benefits The annual maximum benefit for preventive/diagnostic services, basic services, and major services shall be increased to $1,500 per plan member. (Orthodontia coverage shall remain at a $1,000 lifetime maximum benefit level.) Vision Benefits The schedule of allowances for Eye Examinations shall be increased such that the Plan's 80% coverage shall not exceed $50.00. The schedule of allowances for Frames shall be increased such that the Plan's 80% coverage shall not exceed $85.00. The schedule of allowances for Lenses shall be increased such that the Plan's 80% coverage shall not exceed $125.00 for all spectacle lens types. The schedule of allowances for Cosmetic Contact Lenses shall be increased such that the Plan's 80% coverage shall not exceed $125.00 in lieu of spectacle lenses and frames. Section 5. That Section 13 ("OVERTIME/COMPENSATORY TIME"), Paragraph B. of Ordinance No. 98-96 be amended by deleting the fourth (4°i) sentence in said paragraph and replacing it with the following: "If at the end of each calendar year (December 315, a non-exempt employee has 160 hours of compensatory time in his/her compensatory time bank, he/she shall be permitted to covert up to 50 hours of compensatory time in said bank to cash." RECORD OF ORDINANCES Ordinance No ................................................................... Passed .................................................................., ....................... Section 6. That the Ordinance shall take effect and be in force on the earliest date permitted by law. Passed this~~ay of Mayor -Presiding Officer ATTEST: ~~~~ Clerk of Council ~ here'~q a~rt~'y ;lint [OQieS `Jf tItSS Ord-na~CPIReSOIU~~cG, ~~~re posted in i City of Dublin in a€tardance with Section 731.25 of the Ohio Revised Cod+ [.u1cu~, Clark ' Council, Dublin. Ohio Office of the City Manager 5200 Emerald Parkway • Dublin, Ohio 43017-1006 Phone: 614-410-4400 • Fax: 614-889-0740 Memo To: Members of Dublin City Council From: Marsha I. Grigsby, Interim City Manager "~.~ Date: January 3, 2002 Re: Ordinance No. 01-02 Amending Certain Sections of the City Compensation Plan for Non-Union Personnel By: David L. Harding, Director of Human Resources/Procurement ~' INTENT OF LEGISLATION Attached for your consideration is Ordinance No. 01-02 amending certain sections of the City Compensation Plan for Non-Union personnel (Ordinance No. 98-96). As you may recall, at the beginning of each calendar year, Staff recommends amendments to the Compensation Plan, which traditionally involve changes in benefits, adjustments to the wage/salary structure, adoption of pay grades for new job classifications, the reassignment of certain job classifications to different pay grades, or certain "housekeeping" changes. Adoption of Ordinance No. 01-02 would accomplish several objectives: • the reassignment of certain classifications to different pay grades to enhance recruitment/retention efforts and to achieve internal equity; • the adjustment of all pay grades/ranges within the wage/salary structure based upon inflationary factors during 2000 and 2001; • the adjustment of certain benefits to maintain a competitive posture within the public sector labor market, thus aiding in the recruitment and retention of a highly qualified/highly effective staff; • the adjustment of certain benefits to maintain relative parity between union and non-union personnel; and • the adoption of certain "housekeeping" changes. RE-ASSIGNMENT OF CERTAIN CLASSIFICATIONS TO DIFFERENT PAY GRADES During the past year, the Human Resources Staff was called upon to re-analyze/re-factor one particular job classification ("GIS/CAD Technician") in light of the changing concept/nature of the job and evolution in duties/responsibilities. This job classification was re-factored by the Human Resource Staff using the "Position Appraisal Method" job evaluation instrument which has been in use in the City of Dublin since 1996. The "Position Appraisal Method" of job evaluation is a point factoring system specifically designed for Public Sector organizations and is comprised of the following seven (7) compensable factors, each with a particular weighted value: • Nature of Work and Knowledge/Ability Requirements (Weighted Value: 20) • Supervision Exercised/Scope of Responsibility (Weighted Value: 20) • Scope and Effect of Decisions/Actions (Weighted Value: 20) • Problem Solving and Complexity/Nature and Extent of Guidelines (Weighted Value: 15) • Application of Authority (Weighted Value: 5) • Purpose and Nature of Work Contacts (Weighted Value: 10) • Physical and Sensory Demands/Hazards (Weighted Value: 10) Each factor consists of numerous levels that reflect increasing importance, responsibility, and difficulty which are measured by numerical weights. Once the appropriate level is identified by Staff, the points assigned to that level are multiplied by the weighted value for the factor, which results in a given point total for each factor. All points in all factors are added and the total number of points determines the pay grade to which the job is assigned. The higher the point total, the higher the pay grade. Based upon the results of this point factoring analysis on the "GIS/CAD Technician" classification, Staff is recommending that this job classification be reclassified to "GIS Analyst" and reassigned from Pay Grade 5 to Pay Grade 6 in the City's Wage & Salary Structure. (This recommendation is reflected in Section 1. of the attached Ordinance.) INFLATIONARY ADJUSTMENTS TO PAY GRADES/RANGES Section 2.J. of the existing Compensation Plan (Ordinance No. 98-96) requires the pay grade/range structure to be reviewed on a biennial basis by the City Manager and the Director of Human Resources/Procurement for the purpose of proposing inflationary adjustments to the grade/range structure. (The purpose of making such adjustments is to ensure that the pay structure maintains its relative worth over time, which maintains the City's ability to recruit highly qualified, highly effective staff members.) The present grade/range structure has not been reviewed for such inflationary adjustments since it was implemented in August 2000; therefore, now would be the appropriate time to recommend such adjustments. Staff has conducted research with the U.S. Bureau of Labor Statistics and it appears that the inflation rate in this region over the past 18 months has been around 5%. Staff, therefore, recommends that all pay ranges in the City grade/range structure be adjusted at the minimum and maximum by a factor of 5%. Should these proposed adjustments be adopted, Section 2.J. of the existing Compensation Plan (Ordinance No. 98-96) requires that such adjustments become effective January 1, 2002. This does not mean that each employee would receive an "across the board increase" - these adjustments affect the range structure. Individual employee compensation is addressed through the merit increase program which enables each employee to receive an annual merit increase, based on his/her performance, on his/her anniversary date. These adjustments, however, would enable employees presently "maxed-out" in their pay grades to receive a merit increase in 2002, provided their merit review date falls on January 1, 2002 or later. (This proposed 5% adjustment to the grade/range structure is reflected in Section 2. of the attached Ordinance.) 2 ADTUSTMENT OF BENEFITS -MARKET COMPETITIVENESS/PARITY BETWEEN UNION AND NON-UNION PERSONNEL Medical Plan As discussed during the 2002 Council Budget Hearings, ever-increasing prescription drug costs have influenced Staff to recommend amendments to the City's Prescription Drug coverage. Under these .M. proposed amendments, Staff is recommending that a separate Prescription Drug Card co-payment be implemented for generic and brand name drugs. Under the amendments, the present $5.00 Prescription r.~ Drug Card co-payment would remain unchanged for generic drugs in 2002, however, the co-payment for brand name drugs would be increased to $10.00. Beginning January 1, 2003, the co-payment for generic drugs would increase to $8.00 and the co-payment for brand name drugs would increase to $15.00. Recent surveys indicate that while employees nationwide share in an average of 33% of their employers' prescription plan costs, Dublin employees presently share in only 7% of the City's plan costs. Recent surveys also indicate that the annual inflation rate in prescription drug expenses is running at 22%. These two facts necessitate that amendments be proposed to the Medical Plan. The City's Medical Plan has historically provided very rich benefit levels with little out of pocket expense on the part of employees, and the Plan has not experienced any plan design changes since 1993. Even with the amendment to the Prescription Drug Card co-payment, the Plan is still very rich in comparison to most plans offered in the public sector. Although the Prescription Drug Card co-payment would increase under the proposed plan amendment, plan participants would still enjoy a low cost alternative in the form of the mail order prescription drug program, which would still offer a $1.00 co-payment. Plan participants will be strongly encouraged by the Human Resources Division to explore the usage of the mail order program in the future. The Prescription Drug Card co-payment amendment, if adopted at the January 22, 2002 Council Meeting, would become effective February 21, 2002. Vision Plan „w., As also discussed during the 2002 Council Budget Hearings, Staff is recommending that certain coverage enhancements be made to each component of the Vision Plan (Eye Exams, Frames, Lenses, ,,,~„ and Contacts). The 80/20 plan design would remain unchanged, which means that employees would continue to pay 20% of the charges and the plan would cover 80% of the charges up to the maximum amount in the schedule of allowances. Under the proposed amendments, however, the maximum coverage for Eye Exams would increase from $35 to $50, the maximum for Frames would increase from $40 to $85; the maximum for Lenses would increase from $60 for certain types of lenses to $125 for all spectacle lenses; and the maximum for Cosmetic Contacts would increase from $100 to $125. (Plan participants would continue to be eligible for an Eye Exam or Glasses or on Eye Exam and Contact Lenses once per calendar year.) These same coverage enhancements were negotiated into the United Steelworkers Collective Bargaining Agreement in August 2001 and adoption of the same enhancements for non-union personnel at this time would achieve relative parity between union and non-union personnel. In addition, the enhanced coverage levels are inline with the norm in most Public Sector Plans administered by the City's Third Party Administrator (MCA) and, therefore, would move the City's Vision Plan to a more competitive position in the market for Public Sector Plans. (The existing coverage levels have not been adjusted for several years.) This amendment, if adopted at the January 22, 2002 Council Meeting, would become effective February 21, 2002. Dental Plan Staff is also recommending that coverage enhancements be made to the Dental Plan at this time. Specifically, Staff is recommending that the annual maximum benefit amount for preventative/ diagnostic, basic, and major services under the Plan be increased from $750 to $1,500. This annual maximum benefit has not been adjusted for a number of years and it is expected that this adjustment will move the City's Dental Plan to a more competitive position in the market for public sector dental plans. (The City's Third Party Administrator has surveyed other Public Sector Plans under its current administration and has validated that an annual maximum benefit amount of $1,500 is the norm.) The present deductible of $25 per year for single coverage and $50 per year for family coverage will remain unchanged, as well as the $1,000 lifetime maximum benefit for Orthodontia. This amendment to the Dental Plan, if adopted at the January 22, 2002 Council Meeting, would become effective February 21, 2002. (The above referenced changes in Medical, Dental, and Vision benefits are reflected in Section 4. of the attached Ordinance.) Compensatory Time Conversion Staff is recommending one other adjustment in benefits at this time, which involves the threshold governing when anon-exempt employee may convert a portion of his/her compensatory time back to a cash payment. Under the existing provision of the Compensation Plan, anon-exempt employee may convert up to 50 hours in his/her compensatory time back to a cash payment at the end of each calendar year, if he/she has 240 hours in the bank at the end of the calendar year. Under the proposed amendment, anon-exempt employee would be able to convert the same number of hours (up to 50) at the end of each calendar year, but at a lower threshold (160 hours) in his/her bank. This same threshold level was negotiated into the United Steelworkers Collective Bargaining Agreement in August 2001 and adoption of the same provision for non-union personnel at this time would again achieve relative parity between union and non-union personnel. Staff also views this amendment as a mutually beneficial arrangement to the employees and the City in that it allows employees to obtain a cash payment (at a lower threshold) for their banked time, while at the same time reducing time off as well as reducing future financial liability to the City. (It is less expensive for the City to cash out compensatory time in today's dollars as opposed to in the future when the employee is earning a higher rate of pay.) (This amendment is reflected in Section 5. of the attached Ordinance.) "HOUSEKEEPING" AMENDMENTS Staff is recommending one "housekeeping" amendment at this time, which involves the days on which City holidays are celebrated. The existing provision of the Compensation Plan requires that when a Holiday falls on a Saturday, it shall be celebrated on the Friday immediately before and when a holiday falls on a Sunday, it shall be celebrated on the Monday immediately following. This language worked well for many years when all non-union personnel worked a Monday through Friday schedule. However, the Service Department now has 2°d shift personnel, some of which work Tuesday through Saturday (Sunday and Monday off) and some of which work Wednesday through Sunday (Monday and Tuesday off). Staff believes the amendment proposed in Section 3 of the attached Ordinance would better accommodate the advent of such work schedules. Attachment 4