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Minutes - 03/16/1998 Workshop COUNCIL WORKSHOP MINUTES MARCH 16, 1998 TAPE READING 0001 DATE. COUNCIL CHAMBERS, CITY HALL, CITY OF WOODBURN, COUNTY OF MARION, STATE OF OREGON, MARCH 16, 1998. CONVENED. The Council met in a workshop session at 7:10 p.m. with Mayor Kirksey presiding. 0007 ROLL CALL. Mayor Councilor Councilor Councilor Councilor Councilor Councilor Kirksey Chadwick Figley Hagenauer Jennings Pugh S ifuentez Present Present Present Absent Present Absent Present Staff Present: City Administrator Walton, Public Works Director Tiwari, Library Director Sprauer, Police Chief Wright, Finance Director Gillespie, Community . Development Director Goeckritz, Recreation & Park Director Westrick, City Recorder Tennant Administrator Walton stated that the purpose of the meeting is to exchange ideas on compensation and he hoped that this issue would be resolved over the next couple of weeks before the budget process begins. He stated that this is a very complicated issue and it needs to be reviewed and discussed by the Council. Councilor Jennings stated that he wanted the Department Heads to provide the Council with an honest assessment ofthe situation and he encouraged them to openly speak on this issue. Administrator Walton stated that the market has been changing over the last ten years in that unemployment is low and it is difficult to replace individuals in professional and sub- professional positions. The arbitrator who recently decided the Police Association contract award did state in his award that, even though the award went to the City, future awards would look at the metro area as comparables rather than state-wide since the City is becoming a part of the metro area. He advised the Council to take control of the situation now and plan ahead in order to make future transitions a less painful experience. Finance Director Gillespie stated that the compensation issue should be objective utilizing a solid methodology and that the compensation be equitable both internally and externally. If there is dissatisfaction on the methodology, he suggested that the City go back to the consultants to do the compensation study over again or to hire another consulting firm to re-do the study. Page I - Council Workshop Minutes, March 16, 1998 .' ~._...-_.,~_.,., -~ --....-'"-.-.--.---..-..... 1 1 . '~,., COUNCIL WORKSHOP MINUTES MARCH 16, 1998 TAPE READING Police Chief Wright stated that one of the problems he has experienced involves promotion of Sergeants since there is a definite compression issue. He stated that the police management employees are not receiving the same COLA adjustments as the police officers and this situation needs to be rectified. He reminded the Council that they had hired a consulting firm to do a compensation study and, following completion of the study, accepted the study and implemented a new schedule then subsequently put a hold on COLA adjustments for certain employees. He reiterated the Administrator's comments on the arbitrator's award and reminded the Council that the City is a major entity within the State and wages should be paid accordingly. He suggested that police management employees should be placed on a separate salary schedule which will keep pace with the officer wages and provide specific percentage increases between Officers, Sergeants, Lieutenant, and Chief. He stated that all city departments are giving 110% but the Council does not want to recognize those individuals for their work. As a recommended solution, Chief Wright suggested that the Sergeant be paid 15% over the officer, at least 10% between the Lieutenant and Sergeant, and 7.5% between the Chief and Lieutenant. Councilor Figley stated that the Council needs to get back on track and she was in favor of giving the compensation increases from the start since, in her opinion, it was fairness issue. She expressed her interest in implementing the rest ofthe study which includes merit pay and to consider potential award for work performed over and above the call of duty. Councilor Jennings expressed his opinion that some leeway needs to be available regarding placement of positions on grade levels within the schedule. He knows that mistakes have been made and he wants to make sure that it does not happen again. Recreation and Parks Director Westrick related some of his past experiences on compensation issues. He stated that in one community, comparables were agreed upon and a decision was made as to what percentage level positions were paid in comparison to the other communities. Pay ranges were used rather than steps and actual pay was negotiated between the supervisor and board. Another observation that he shared pertained to recruitment of management or mid-management employees that the Council needs to know what is being paid to other individuals in like positions in the area that you are recruiting from since pay does playa factor in an individual's decision to apply for a particular position. Public Works Director Tiwari stated that his department is not as sophisticated as the Police but they also need to be treated fairly. He expressed his opinion that he had been treated unfairly by the Council based on the end result of the compensation study and Page 2 - Council Workshop Minutes, March 16, 1998 - - "", COUNCIL WORKSHOP MINUTES MARCH 16, 1998 TAPE READING reminded them that he was the only department head that did not receive a salary adjustment. He has been very frustrated with how he has been treated and it has resulted in personal health problems. In his opinion, the system has let him down and he did not deserve to be treated the way that he was treated. He feels that the Council needs to act like an employer and treat employees fairly. Overall, the community will look back and see what good has been done by public works staff who had the foresight to implement certain programs, etc., in making the community a better place to live. He reminded the Council that public works is the most expensive of all city functions and the employees should not be treated as if they are nothing. He also stated that the Council should have understood what decision was being made back in 1996 before the decision was ever made final. He expressed his appreciation to the Council for holding this meeting so a group discussion could be held on this issue. In regards to a recommended fix, he stated that his position should be properly compensated. Additionally, the non-union employees had for several years been eligible for incentive pay (up to 1.5%) which was taken away with the implementation of the new schedule. He suggested that a Step D be included in the schedule and the merit range be reduced. Community Development Director Goeckritz briefly stated that many of his concerns had already been expressed and he was very frustrated with the situation. Library Director Sprauer stated that she was frustrated and disappointed in the Council's action. At the time the schedule was implemented, she felt that some progress was being made to pay accordingly, however, the Council retracted their position in later months. She stated that her first loyalty is to her department and setbacks have occurred over the years due to financial constraints. She reminded that any future director will be looking at operational funding and the director's salary range when making a decision as to whether or not to apply for the position. Councilor Jennings expressed his appreciation to the department heads for their frank and honest statements and stated that he owes the staff an apology for what had happened and he is willing to do something to correct this situation. Mayor Kirksey stated that she has always felt that the Public Works Director pay has always been incorrect and pressure was placed on the Council by Budget Committee members who did not have the same information as it relates to the study nor do they have the same overall responsibility. Police Chief Wright also stated that the City does not have a compensation package that is portable since we have a private retirement program. There is no lateral transfer Page 3 - Council Workshop Minutes, March 16,1998 , "M"_"~~_"_"""""'.' ...".,.____ , ~,,~-~...... ....-..---.--.... ..",,------ ....- .--.., ----.."." 'I 1 .~ ." COUNCIL WORKSHOP MINUTES MARCH 16, 1998 TAPE READING program available since the City does not have a program available that gives a certified officer an incentive to move to our department. Being a small department, professional advancement is limited but having staff turnover is very expensive. Mayor Kirksey questioned why the City is not a member of PERS at this time. Chief Wright stated that cost has been a factor in not making the change. Mayor Kirksey suggested that the City look into the possibility of switching to PERS and negotiate cost increases if the need arises. Recorder Tennant stated that now may be the time to consider a change since many employees have been paying at the same rate of withholding (6%) that PERS participants have been paying for many years and more than half ofthe work force has been employed by the City since the late 1980's. Following a brief discussion on the retirement issue, Councilor Jennings expressed his opinion that the City should pursue discussions with PERS. Administrator Walton briefly summarized the comments as follows: 1) money and respect are both important to the employees; and 2) the Council has to represent the non-union employees; 3) the Council needs to develop a plan to address the problems by establishing a balance in which they are fair to the employees and responsible to the community. He also suggested that the Council consider the following proposals: 1) separate salary schedule for police management employees which is tied into the base pay of the Police Association, 2) establish a merit system which is less than 7.5% such as 2.5% to 5% in order to experiment with this program, 3) re-establish a Step D at 2.5% or 5% and reduce the Merit range accordingly; 4) adjustments be made to salaries to bring them back up to the adopted salary schedule since funds are available within the existing budget, and 5) consider the creation of a new range # I 7 for the Public Works Director or to authorize a new study for this specific position to determine an appropriate pay level. Further discussion was held regarding pay inequities between union and non-union positions that ultimately result in pay compression. Councilor Jennings reiterated that he would like to see the City look into PERS and a lateral transfer program needs to be looked into for all departments. Administrator Walton commended the Councilors present for willingness to listen to the department heads. Councilor Figley stated that the Council needs to understand the consequences before they vote on an issue. She hoped that this is one situation that the Council can avoid in the upcoming budget sessions. Councilor Sifuentez stated that, as a Councilor, she needs to listen to the people and it is Page 4 - Council Workshop Minutes, March 16,1998 ... .....___..._."..'> _____n.....",.'"_.. .. 1 ....'.'1 COUNCIL WORKSHOP MINUTES MARCH 16, 1998 TAPE READING hard when residents call and express their opinion that city employees make too much money. She realizes that City employees are hard working individuals who provide an excellent service to the community but money is always an area of concern. The meeting concluded at 8:39 p.m.. NANCY A. ~ APPROVED ATTEST m~,.,~ , M~~~ Recorder City of Woodburn, Oregon Page 5 - Council Workshop Minutes, March 16, 1998 -....,...