City and Borough Assembly

ASSEMBLY CHAMBERS CITY AND BOROUGH OF SITKA 330 Harbor Drive Sitka, AK (907)747-1811 Minutes - Final City and Borough Assembly Mayor Mim McConnell Deputy Mayor Matt Hunter Vice-Deputy Mayor Phyllis Hackett, Pete Esquiro, Mike Reif, Benjamin Miyasato and Aaron Swanson Municipal Administrator: Mark Gorman Municipal Attorney: Robin L. Koutchak Municipal Clerk: Colleen Ingman, MMC Thursday, May 29, 2014 6:00 PM Assembly Chambers I. CALL TO ORDER II. FLAG SALUTE III. ROLL CALL Present: 7 - McConnell, Hunter, Hackett, Esquiro, Reif, Swanson, and Miyasato IV. PERSONS TO BE HEARD None. V. NEW BUSINESS: REPORT A 14-129 Hear and receive the Gallagher Consulting (Fox Lawson Associates) Final Report following their review of Compensation and Benefits for City and Borough of Sitka Gorman informed that staff was given a presentation that afternoon . HR Director, Mark Danielson, gave a brief history of the compensation study and related history over the last nine years. Unions began seven years ago and the concern now was that unions were running up against non-union employees. Lori Messer of the firm Fox Lawson and Associates stated the CBS existing pay matrix was outdated. This was evident by the fact seventeen of the non-union employees were off the existing pay matrix at Step O. A discussion ensued on health and administrative costs and such things as Child Care reimbursement. Danielson reported there had been a lot of discussion on looking into these programs over the years. Some were doable with no risk such as Child Care, others were complicated and wouldn't work for CBS. New Business First Reading CITY AND BOROUGH OF SITKA Page 1 City and Borough Assembly Minutes - Final May 29, 2014 B ORD 14-18 Amending CBS Sitka Personnel Policies Handbook to: Change Policy on Probationary Period Increase for Regular Employees; Address Starting Pay for New Employees; Address Pay Upon Promotion; Establish Pay Matrix Procedures; Address Forfeited Annual Leave; Remove Section XXI and Update Attachment A Jay Sweeney, Chief Finance and Administrative Officer, believes this was a "kind plan" and spoke in support of it. HR Director, Mark Danielson pointed out that the biggest question was sustainability. The biggest change for an employee would be stopping at Step H. After an employee reached Step H, the ways to advance would then either be through performance and increases to the matrix, which would be at least 1.5% each year. Employees below Step H would receive Step progressions and a percentage every year. A major administrative change was the increase awarded after completion of a six month satisfactory evaluation would go away. Gorman advised that 72% of work force was below Step H. Money to fund this had already been budgeted and identified. Esquiro would like sufficient time to review. Members indicated that if Esquiro wasn't ready to vote on June 10 he could postpone action until the following meeting. Miyasato stated if employees were not compensated they would go somewhere else; it was an actuality. Administrator Gorman explaned that the lowest compensated were getting the higher percentages along with senior staff. He mentioned that senior staff worked 60-70 hours a week consistently. Jay Sweeney offered that the 2.5% was already set aside. Reif asked questions on performance pay appropriations. Gorman said he planned to define it, what it would look like and how it would be allocated. He was not a fan of step increases. He was supportive of an employee who did a wonderful job and therefore was awarded a bonus. Esquiro agreed, very similar to the private sector. A motion was made by Swanson to approve this Ordinance 2014-18 on first reading with a non-substantive amendment. The motion PASSED on the following vote. Yes: 7- McConnell, Hunter, Hackett, Esquiro, Reif, Swanson, and Miyasato Reif wanted to make sure the Assembly was kept informed. He trusts Gorman to do that, but wanted something in place for future administrators. A motion was made by Reif to amend at Line 149 by adding: The Administrator will provide to the Assembly (two times a year) a report of the employees receiving performance pay, the amount and reason. The amendment PASSED on the following vote. Yes: 7- McConnell, Hunter, Hackett, Esquiro, Reif, Swanson, and Miyasato VI. PERSONS TO BE HEARD: Chief Dave Miller spoke about the volunteers that worked for the city. He had learned that 13 of the last 15 left because they couldn't find jobs where they could live comfortably. Hackett reminded that Sitka would host the Regional Baseball Tournament followed CITY AND BOROUGH OF SITKA Page 2 City and Borough Assembly Minutes - Final May 29, 2014 by the State Baseball Tournament. VII. EXECUTIVE SESSION None. VIII. ADJOURNMENT A motion was made by Esquiro to ADJOURN. No objections were heard and the meeting ADJOURNED at 7:45 PM. ATTEST: __________________________ Colleen Ingman, MMC Municipal Clerk CITY AND BOROUGH OF SITKA Page 3