Committee of the Whole

City of West Allis 7525 W. Greenfield Ave. West Allis, WI 53214 Meeting Minutes Committee of the Whole Common Council President Thomas G. Lajsic, Chair Alderpersons: Gary T. Barczak, Michael J. Czaplewski, Kevin Haass, Michael P. May, Cathleen M. Probst, Rosalie L. Reinke, Daniel J. Roadt, Vincent Vitale, and Martin J. Weigel Monday, February 13, 2017 6:00 PM City Hall, Common Council Chambers SPECIAL MEETING A. CALL TO ORDER The meeting was called to order by Council President at 6:00 p.m. B. ROLL CALL Present 9- Ald. Lajsic, Ald. Czaplewski, Ald. Haass, Ald. May, Ald. Probst, Ald. Reinke, Ald. Roadt, Ald. Vitale, and Ald. Weigel Excused 1- Ald. Barczak C. APPROVAL OF MINUTES 1. 2017-0081 Minutes (Draft) of the Committee of the Whole Special meeting of October 13, 2016. Attachments: 100316 Committee of the Whole Special Meeting.draft A motion was made by Ald. May, seconded by Ald. Probst, that this matter be Approved. The motion carried unanimously. D. NEW AND PREVIOUS MATTERS 2. R-2017-0023 Resolution to approve Carlson Dettmann Compensation and Classification Study, Pay Plan, and Authorize Implementation. Sponsors: Administration & Finance Committee Attachments: Compensation Study Executive Summary Appendix A - Pay Plan Appendix B - Classification Review Process Appendix C - Appeal Process Fiscal Note Final Review Memo - April 4, 2017 Appendix A Updated - Pay Plan April, 2017 Appendix C Updated - Appeal Process April, 2017 Fiscal Note - Updated April, 2017 R-2017-0023 signed City of West Allis Page 1 Printed on 11/17/2017 Committee of the Whole Meeting Minutes February 13, 2017 Council President Lajsic explained that the Compensation and Classification Study was requested by the Common Council. The Committee of the Whole members were directed to ask questions after each of the seven (7) points of Ms. Grill's letter to the Common Council dated February 10, 2017. The Administration and Finance Committee will make recommendations to Council. Council President Lajsic asked the audience if there were any questions which there were none. Ms. Grill and Mr. Charles Carlson, Partner, from Carlson Dettmann Consulting (CDC), presented the seven (7) points. 1) Adopt the proposed job classification system and pay plan based on the CDC job documentation and job evaluation process and competitive market analysis. (Appendix A). a) Adopt the pay plan as proposed, effective - June 3, 2017 (Cost =~$60,000) - CDC Recommendation i) Move employees currently paid below their range control point to the step closest to and higher than their current rate. (87 employees) ii) Employees in the merit zone may receive increase with pay for performance plan in the future. (231 employees) iii) Employees with rates above their range maximum are “red-circled” until their range moves higher or they are promoted or reclassified to a higher grade. (6 employees) Mr. Carlson commented on the following: the City’s current classifications are dated; explained the Pay Plan for non-represented and sworn officers; how raises would be achieved using the measure of performance; an employee hired over the control point should be brought before the committee; explained that work needs to be done to allow employees to earn more and how it begins with the Performance Review; suggested superior work doesn’t have to be rewarded with more money and that it could possibly be training, conferences, equipment, or a donation to a charity; and suggested using a performance matrix which is objective and fair. Ald. May directed staff to create a salary ordinance which repeals and recreates applicable salary ordinances and to prepare a resolution which describes implementation details. b) Consider a one-time non-base building payment to non-represented employees equivalent to 1% of current annual salary (due to lower than anticipated implementation costs, expectation of pay for performance program for 2018, no cost of living adjustment for 2017 and cost saving realized by adoption of #4) (Cost = ~ $192,000) - CA recommendation. Council President Lajsic reiterated that after 2017 no raises for non-representative employees will be received, just a one-time stipulation payment. City of West Allis Page 2 Printed on 11/17/2017 Committee of the Whole Meeting Minutes February 13, 2017 Ald. May directed staff to create a resolution for Common Council approval to authorize payment. c) As pointed out on page 9 of the Executive Summary, ensure pay compression or inversion issues in Police and Fire Departments are continually mitigated by providing a Compression Pay Multiplier which provides for additional compensation of 10% above the highest ranking represented employee and lowest non-represented employees; with increased percentage for other non-represented employees based on the 10% and their positions percentage above the lowest ranking non-represented employees; updated as contract compensation becomes effective. - CA recommendation Ms. Grill commented on a study indicating an excess of ten (10) percent in salaries doesn’t provide flexibility within the performance zone. Ald. Probst commented on how represented employees are guaranteed compensation, but there is nothing for non-represented employees and she cannot agree on the 10% separation; therefore she cannot recommend approval at this time. Ald. May has concerns with the Police Department with grade separation and suggested this to be included in the policy as to not cause problems down the road. Ald. Weigel suggested going 5% - 7%. Council President Lajsic explained that this recommendation doesn’t affect anything right now and can be acted on at a later date after the compensation study is finalized. No recommendation at this time (Update Policy and Procedure #1110 - Creating, Maintaining and Administering Compensation/Salary Ranges.) d) Document all approved non-represented premium pays, holiday schedules and other monetary compensation and allowances by including all in the appropriate Policy and Procedure, i.e. West Allis Resident Incentive Premium of 2%, Annual Holiday Pay, Clothing Allowance, Paramedic Certification, SWAT Pay, Longevity Allowance, Emergency Medical Dispatch Certification, etc. - CA recommendation. Ms. Grill recommended this being placed in the policy. Ald. May directed staff to update Policy and Procedures #1412 Holidays, #1424 - Overtime and Premium Pay, #1484 - Clothing, Tool and Other Allowances. e) Streamline the payment for fill in work to provide additional compensation for filling in, in positions above current position in Public Works, $20 per day for positions 1-2 grades above current position and $40 per day for positions 3 or more grades above current position. (~$13,000 per 2016 actuals) - CA recommendation. Ms. Grill would like this to be placed in the policy and commented on the fill-in pays to be streamlined. Ald. May commented on the pay for policy when learning above one’s normal position is solely for Public Works employees and not for all City of West Allis Page 3 Printed on 11/17/2017 Committee of the Whole Meeting Minutes February 13, 2017 employees. Ald. Probst addressed fill-in pay outside of Public Works for extraordinary circumstances. Further discussion ensued. Additional Action Needed - Update Policy and Procedure #1424 - Overtime and Premium Pay. 2) Maintain the pay system using the recommended review process (Appendix B). a) Implement a review process which varies slightly from the consultant’s recommendation. Instead of providing an annual review by employee request, require review of non-represented positions by Departments and Human Resources each time a position becomes vacant (if position has not been reviewed in past 12 months), and if new duties, education, certification, licensure, training or experience are substantially changed, refer to CDC for review. - CDC recommendation with CA revisions b) As already provided for in the 2017 City of West Allis Adopted Budget, send classification requests for new or changed position to CDC. Mr. Carlson explained that jobs change over time and changes will be implemented internally with Human Resources and Administration. Mr. Carlson charges $250 for each evaluation. Additional Action Needed - Update Policy and Procedure #1110 - Creating, Maintaining and Administering Compensation/Salary Ranges. 3) Authorize and implement the classification appeal process (Appendix C). a) Provide authorization for warranted appeals; include additional options for merited review of details of the CDC job evaluation scoring. - CDC recommendation Mr. Carlson explained that more information will be given to Department Heads for the appeal process and the points system will be explained. It is a layer appeal process and if there is an error, a change will be considered, and the ultimate decision is the City’s; it is the responsibility of the Common Council to decide where employees are on the pay range. City Attorney Scott Post addressed his concern relative to defining the appeal as warranted and merited as these terms mean different things to different people. Ald. Probst opposed the appeal process because it can be subjective and was concerned if the process can be shutdown. Council President Lajsic explained the process will not be shut down. Ald. May recommended to review and approve a professional services agreement for the appeal process. 4) Substantially limit overtime eligibility for managers, administrator, supervisors, and professionals - those staff exempt from provisions of the Fair Labor Standards Act, providing exceptions for emergency work. City of West Allis Page 4 Printed on 11/17/2017 Committee of the Whole Meeting Minutes February 13, 2017 a) Correctly classify employees as FLSA Exempt or Non-Exempt through the pay plan. - CDC Recommendation. Mr. Carlson recommended not paying overtime to managers and supervisors. b) Provide that FLSA Exempt Employees are eligible for compensation time, earned at straight time, for any hours worked in excess of 48 hours per week.* (Does not include Executive, Managerial or Assistant City Attorneys who are already exempt from compensation time per current policy). CDC Recommendation. Ald. May recommended that FLSA Exempt employees be eligible for compensation time, earned at straight time, for any hours worked in excess of 45 hours per week not 48 hours. c) Allow FLSA exempt employees to carryover 60 hours of compensation time. - CA recommendation. Council President commented on when the carryover of compensation time needs to be used. Mr. Carlson recommended reporting of overtime by department heads on a quarterly basis. Ald. May stated it is cheaper to pay overtime than to bring on a new employee. Ald. May was concerned of no options given. d) Eliminate any cash payouts for unused compensation time or overtime for FLSA exempt employees. ($200,000 time/pay savings per 2016 actuals) - CDC recommendation. e) Provide overtime payments (or compensation time accrual, if requested) for FLSA Non-exempt employees when employees are required to work more than 40 hours per week*. - CDC recommendation with CA revision to allow for comp time. f) *Provide exception for Emergency Operations Overtime or Compensatory Time at the rate of one and one-half times the rate of regular pay when employees reach 40 hours paid per week regardless of whether they are exempt or non-exempt. - CDC recommendation with CA detailed options. Ald. May commented on how the pay period would work for employees who receive incentive pay (i.e. a Truck Driver who receives incentive pay for completing the route before the required time). Additional Action Needed - Update Policy and Procedure #1424 - Overtime and Premium Pay. 5) Revise the City’s performance review process to include a pay for City of West Allis Page 5 Printed on 11/17/2017 Committee of the Whole Meeting Minutes February 13, 2017 performance component to appropriately reward employees for innovation and service excellence. Utilize software to manage the process, train supervisors in the process and hold them accountable for adhering to standards. a) Implement use of NeoGov Perform as funded in 2017 Budget. This will automate the performance review process. (HR has already begun the implementation of NeoGov Insight to automate the hiring process and will soon begin the implementation of NeoGov Onboard which streamlines hiring paperwork, processes and training, both of which are free to CVMIC members.) - CDC recommendation. Mr. Carlson stated the NeoGov will be implemented by December 2017 which will track and manage the review process. b) Develop a Pay for Performance Employee Evaluation System - CDC recommendation. Mr. Carlson recommended self-evaluations. c) Develop and Communicate city-wide employee performance standards, core values and competencies (Strategic Plan - Goal #5-1) on which employees will be rated. - CA recommendation. d) Evaluate managers and supervisors strengths and abilities and provide training as needed to ensure full competency as performance evaluator. - CDC recommendation. Mr. Carlson said the supervisors need coaching to be effective evaluators; and it could be part of a group effort for payout. Ald. Czaplewski questioned how performance goals would be set, for example a laborer who has specific duties each day. Mr. Carlson suggested creative rewards such as obtaining goals as a team or crew versus individual. Council President Lajsic stated that goals will have to be developed and tweaked; and Council President Lajsic is happy with the salary compensation study. Mr. Carlson recommended tying performance to pay. Ald. May stated employees can share ideas and reward employees pay for performance. Ald. May indicated that Wauwatosa didn’t do Pay for Performance for the first two (2) years until they normalized data. e) Update performance review process i) update current performance evaluation form ii) initiate process with employee self-evaluation at anniversary date iii) include measurement of desired competencies based on the City’s key goals and objectives iv) include development plans and goal setting for individuals and departments City of West Allis Page 6 Printed on 11/17/2017 Committee of the Whole Meeting Minutes February 13, 2017 v) identify strengths and areas for development vi) involve additional levels of supervisory review, as appropriate vii) provide for feedback from internal customers viii) hold supervisors accountable for appropriate performance reviews by including a checks and balance system ix) train all employees on process and supervisors on how to provide meaningful feedback x) ensure that the performance goals are achievable, quantifiable, and measurable f) Implement in stages and by example i) In 2017, create the performance plans for Executive Service Employees ii) In 2018, implement pay for performance review process for FLSA exempt employees, all non-exempt employees may receive a non-base building payment equivalent to a percentage of their annual regular salary (both contingent upon budgetary limitations) iii) In 2019, implement pay for performance review process for FLSA non-exempt employees CDC recommendation, CA details g) Provide adequate funding for system to incentivize and reward innovation and service excellence. CDC recommendation Additional Action Needed - Review and Approve Professional Services Agreement for creation of process, forms and training. Sign NeoGov Perform Contract. Update Policy and Procedures #1110 - Creating, Maintaining and Administering Compensation/Salary Ranges, #1422 Departmental Review of Employee Performance, #1441 Management and Supervisory Training Program, # 1457 - Department Review of Employee Performance During Probationary Period. 6) Appoint a special committee, including outside experts, to develop recommendations in 2017 for modifying the City’s retiree health insurance policy so it is affordable and consistent with the strategic plan for the City. Recommendations may include increasing the separation of the rating of the health insurance plans for current and retired employees, and gradually shift premium sharing for current employees to a more standard premium ratio. Ald. Vitale commented on the future cost of insurance with retirees. Ald. Probst recommended cease giving retirement benefits to new hires. Mr. Carlson recommended two options: 1. To group rate differently, or 2. Is for the City to declare bankruptcy which he doesn’t encourage; he also recommends obtaining outside help and does not recommend abolishing retiree insurance. CDC recommendation, CA revision as below. City of West Allis Page 7 Printed on 11/17/2017 Committee of the Whole Meeting Minutes February 13, 2017 7) Examine the options and develop a Paid Time Off benefit plan to replace the City’s various time off plans in 2018 (sick leave, holidays, vacation, personal leave, etc.) which moves toward a balance between fiscal responsibility and employee recruitment and retention. a) Direct the newly created Employee Benefit Committee to partner with three members of the West Allis Business Community responsible for or involved with providing employee benefits to review and develop recommendations as listed above in #6 and #7 for future consideration. CDC recommendation, CA revision. This matter was Discussed 3. 2016-0703 Communication from City Administrator regarding the Classification and Compensation Study Results (including Pay Plan, Reclassification Requests, and Implementation Options). Attachments: Communication re Classification and Compensation Study Results Classification & Compensation Study Project Update.121216 See Legislative File No. R-2017-0023. This matter was Discussed E. ADJOURNMENT The meeting adjourned at approximately 8:35 p.m. Respectfully Submitted, Janel Lemanske Secretary to the Committee City of West Allis Page 8 Printed on 11/17/2017