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R-761 - 12/12/2000 - SALARY ADMIN PLAN - Resolutions Supporting DocumentsI I I DATE: TO: SUBJECT: The Villa empl� The p recorr Salar} howel Salary attach iro�1ty � St OF 0 q 1( P d � O G � O 4 9c�ODUNTV VILLAGE OF OAK BROOK 1200 OAK BROOK ROAD OAK BROOK, ILLINOIS 60523 -2255 December 8, 2000 70. 00-.- PHONE: 630 990 -3000 MEMORANDUM FAX: 630 990 -0876 W E B S I T E: www.oak -brook org Village President and Board of Trustees 2001 Salary Plan & Salary Administration Policy for Non - Represented Employees RECOMMENDATION: That the Village Board adopt a resolution approving the Salary Plan and Salary Administration Policy for Non - Represented Employees, effective January 1, 2001, in the form attached hereto. Village's Salary Administration Policy, a policy and procedure document approved annually by the Villa; Board, states the following with respect to maintenance of the Salary Plan for non - represented ovees: "The Village Manager shall be responsible for reviewing the data supporting the annual grade adjustment, as well as the performance salary guidelines, and submitting the revised Salary Plan to the Board of Trustees for its approval The Village Manager shall also be responsible for engaging an independent compensation consultant once every three years, and forwarding the study, evaluations and recommendations to the Village Board for its consideration. " ,irpose of this memorandum is to present the results of the triennial compensation program audit, the mended 2001 Salary Plan for non - represented employees, and recommended amendments to the Administration Policy. My recommendations are based primarily on the consultant's findings, er they deviate from the consultant's recommendations in certain respects. The recommended 2001 Plan and Salary Administration Policy, both intended to be effective as of January 1, 2001, are ;d hereto as Exhibits A and B, respectively. COMPENSATION PROGRAM AUDIT As the Board knows, the goal of the Village's compensation program, and of any sound compensation program, is to maintain a system for classification and compensation that is both internally equitable and externally competitive. The purpose of the triennial audit procedure is to maintain those conditions within our program. The Salary Administration Policy provides that pay grades will normally be adjusted annually, effective on January 1 of each year, with due consideration given to the change in the Consumer Price Index ( "CPI ") for the Chicago- Gary-Lake Co. region, as published by the U. S. Department of Labor, for the twelve months ended September 30 of the preceding year; the Employment Cost Index (Salaries & Wages) for the Midwest Village President and Board of Trustees December 8, 2000 Page 2 regions for the third quarter of the preceding year, as published by the U. S. Department of Labor; and the pay practices of the Village's comparable communities. The Salary Administration Policy further provides that every three years the Village will retain the services of a compensation consultant to perform an independent analysis of the compensation program and that, in those ,years, adjustments to the Salary Plan may be based on the results of that evaluation, as well as other factors. In 1997, the Village retained Hay Management Consultants ( "Hay ") to conduct a comprehensive review of all non - represented positions in the Village of Oak Brook. Resulting recommendations (as modif ed by the Village Manager and approved by the Village Board) concerning internal comparability and external competitiveness were incorporated into the 1998 Salary Plan. In July of 2000, the Village again retained Hay to review the compensation program and provide recommendations concerning the Salary Plan to be effective as of January 1, 2001. Hay's final report is attached hereto as Exhibit C. Because Hay had reviewed all positions and assigned fob content points in conjunction with its 1997 analysis, the current analysis involves a review of only those position descriptions for niei positions (those that were not in existence in 1997) and those that have changed materially in the past three years. The position description review was supplemented by interviews with department heads. An ei aluation of the content of these new or changed positions using the Hay Guide Chart Profile system of fob e valuation was completed. The jobs were then placed into grades along with jobs with similar overall content, as measured by the Hay job content evaluation procedure. This constituted the internal equity assessment portion of the study. The external competitiveness portion of the study involved collection of salary data for benchmark positions from the employers determined to constitute the Village's employment market in the 1997 interest arbitration between the Village of Oak Brook and Teamsters Local Union #714 in connection with the Police Department bargaining unit. Historically, it was common for municipalities to use large regional salary surveys for analysis of the external competitiveness of their salary structures. For example, for a number of years up until the early 1990 s, Oak Brook made use of a large regional survey published by Cook County. Compulsory binding interest arbitration (applicable to certain groups of public employees pursuant to the Illinois Public Labor Relations Act) has rendered such regional surveys irrelevant. Today, regardless of whatever comparison meth�olds might have been used in the past, a municipality's comparator market is represented by its most recent set of arbitrated comparable communities. Subsequent to the 1997 interest arbitration, the Village and Teamsters Local Union #714 agreed to a list of comparable employers applicable to the Fire bargaining unit. With the exception of the Village of Villa Park all of the communities identified as comparable for the Fire bargaining unit are among the list stemming from the 1997 interest arbitration. As such, data from the Village of Villa Park is also included in the analysis. Oak Brook's comparator market currently consists of the following employers: Village of Bensenville Village of Bloomingdale Village of Burr Ridge Village of Downers Grove Cook County Bureau of Administration Village President and Board of Trustees December 8, 2000 Page 3 The to tl City of Elmhurst Village of Hinsdale Village of La Grange Park Village of Lombard City of Oakbrook Terrace Village of Villa Park Village of Westchester Village of Western Springs Village of Westmont Village of Willowbrook ,ry information was collected by the Village and provided to Hay, who performed an analysis that led commended adjustments to the salary ranges. Internal Equity. Hay's findings and recommendations with regard to internal equity of those positions that are new or have changed materially since the 1997 study are found on page 4 of the report (Exhibit Q. With only a few exceptions, Hay found that the internal equity reflected by the Village's current pay program is essentially good. In 1997, Hay recommended a Plan that consisted of eleven grades, and that structure was adopted. The implementation of the 2000 Plan included two additional pay grades to accommodate the newly created Deputy Police Chief position and a re- evaluation of the Police Sergeant position. Based on the analysis of fob content of these positions, which itself was based on updated job descriptions and inter dews, Hay recommends returning to a structure consisting of eleven grades, rather than the thirteen grades reflected in the 2000 Salary Plan. In addition to reducing the number of pay grades, Hay recommends that set en positions move within the salary structure in order to improve internal equity. In general, I agree with Hay's findings concerning internal equity. However, my recommendation includes the reclassification of four positions (in addition to those recommended by Hay) based on fob content and market, as identified later in this memorandum. With these four exceptions, the recommended 2001 Salary Plan reflects the grade structure as recommended by Hay. External Competitiveness. Hay's findings and recommendations regarding external competitiveness are presented on pages 5 and 6 of the report. In general, Hay found that the Village's existing salary ranges are somewhat more competitive at the lower salary ranges than at the higher ranges. The report indicates that current (2000) salaries are competitive with the 66' percentile of the market in the lower grades, but below the 50 percentile of the market for the two highest pay grades. Hay has provided two alternatives regarding the two highest pay grades. Alternative 1 would target the positions at the 50`h percentile, while Alternative 2 would ld target the positions at the 66`'' percentile. I recommend adopting Alternative 2, targeting these positions at the same general position relative to the market as all other non - represented positions. In an Plan that pose vent, Hay's findings are consistent with my general view that most of the fobs covered by the Salary r non -union employees are somewhat "larger" (i.e., more substantial in content) than positions the same or similar titles in other municipal organizations. This view is based primarily on the fact : Brook has a very lean organization, especially in terms of administrative, supervisory and technical S. i Village President and Board of Trustees December 8, 2000 Page 4 RECOMMENDATIONS Pay Ranges. The range adjustments recommended by Hay are calculated based on the midpoint of the range. Historically, we have not used a midpoint calculation, but instead have expressed range adjustments based on increases to the maximum of the range. On that basis, the recommended adjustments to the maximum of each range are as follows: i •� Grade 1: $25,095 - $33,952 — 4.2% adjustment to range. i •1 Grade 2: $27,044 - $36,589 — (0.7)% adjustment to range. • Grade 3: $29,366 - $39,731 — 3.6% adjustment to range. • Grade 4: $32,186 - $43,546 —.7% adjustment to range. • Grade 5: $35,296 - $47,753 — 3.5% adjustment to range. • Grade 6: $38,945 - $52,691— 3.9% adjustment to range. • Grade 7: $43,465 - $58,806 — 2.8% adjustment to range. • Grade 8: $50,128 - $67,680 — This Grade includes positions that were previously included in old Grades 8 and 9. The Hay report targeted this Grade for a 1% reduction to the range minimum and maximum. Staff reviewed the market data for the benchmark position in this grade, and based on our assessment and understanding of similar positions in other communities, I recommend that a 0.8% increase to the existing range would better maintain external competitiveness. For the two positions included in old Grade 8 (i.e. Accounting Manager and Executive Chef), the change represents a 6.5% adjustment to the range. For the positions that were included in old Grade 9 (i.e. Chief Building Inspector, Golf Course Superintendent, Information Systems Specialist, Police Sergeant and Public Works General Foreman), the change represents a 0.8% adjustment to range • Grade 9: $55,781 - $75,469 — 2.7% adjustment to range. • Grade 10: $59,157 - $85,763 — Adopt Hay Alternative 2 targeting these positions at the same general position relative to the market as all other non -union positions. 5.5% adjustment to range. • Grade 11: $63,815 - $92,516 — Adopt Hay Alternative 2 targeting these positions at the same general position relative to the market as all other non -union positions. 7.4% adjustment to range. - alendar Year Eoualization The market data used by Hay in determining external competitiveness is based on calendar year 2000 earnings. Because the overwhelming majority of the Village's comparable communities will adjust pay ranges mid -year (i.e. May, 2001), I recommend that the Village implement an across - the -board general adjustment of 2 %, effective January 1, 2001, to the ranges set forth above. The percentage is based on an assumption that the average May 1 adjustment among the comparable communities will be 3 %, and that those communities would be implementing the adjustment following the first 1 /3`d of the year. Village President and Board of Trustees December 8, 2000 Page 5 The adjustments recommended by Hay to the pay ranges of individual positions (where there has not been a reclassification) range from 0.8% to 7.4 %. With the implementation of a 2% across -the -board adjustment, the adjustments range from 2.8% to 9.6 %. The adjustments to the pay ranges of positions that have undergone reclassification (i.e., the content of the job has evolved to an extent material to compensation) range from -6.0% to 19.0 %. The recommended ranges are presented on page 1 of Exhibit A. rec 16� i sifications and Title Changes. The recommended 2001 Salary Plan includes the re- titling and/or ification of the following positions: The Police Records Clerk position has been reclassified from Grade 1 to Grade 2 based on market data and growth in job content since the last study. The Records Management Clerk responsible for the Village archives and freedom of information coordination has been reclassified from Grade 1 to Grade 2 based on fob content. The Account Clerk position has been reclassified from Grade 2 to Grade 3 and given the title Accounting Assistant. The duties of these positions have evolved into more general Accounting functions (i.e. not limited to simply payables, receivables, etc.). The Purchasing and Information Services Clerk has been reclassified from Grade 2 to Grade 3 based on this position's growing responsibility for coordinating the purchasing process. The Building Maintenance Employee position has been re- titled Building Maintenance Technician, which is more reflective of the duties of the position. The Personnel Specialist position has been re- titled Payroll/Benefits Specialist to more accurately describe the duties of the position. The Accountant position is reclassified from Grade 7 to Grade 6 based on a re- evaluation of fob content as well as market data. This change has no impact on the current compensation of the Job incumbent. The Engineering Technician position has been reclassified from Grade 5 to Grade 6 based on the comparator market. The Public Works Mechanic position has been reclassified from Grade 5 to Grade 6 based on a re- evaluation of the required knowledges, skills and abilities of the position. The Circulation Services Supervisor and Technical Services Supervisor positions of the Library have both been re- titled to Senior Librarian, and reclassified from Grade 6 to Grade 7. This places all Library Division heads in the same pay grade. Current Grades 8 and 9 have been re- grouped as new Grade 8. The Hay job content analysis for the Accounting Manager position (created since the last study) warrants its inclusion with the other positions. Internal equity surrounding the Executive Chef position was established during the last study as well. i Village President and Board of Trustees December 8, 2000 Page 6 • Current Grade 10 becomes new Grade 9, and Grade 11 is eliminated with the re- classification of the Deputy Police Chief position to new Grade 10. The Assistant Village Manager position is also re- classified to new Grade 10. Implementation. If approved by the Board, it is my intention to implement the 2001 Salary Plan as follows: 11. A small number of employees with 12/31/00 salaries below the minimum of their new range would have their salaries adjusted to the new minimum as of 1 /1 /01. 2. Employees with 12/31/00 salaries falling within their new range would receive, consistent with the Salary Administration Policy, the increment by which their pay range moved, up to a maximum adjustment (related to range movement) of 5 percent. I 3,. Merit adjustments and merit bonuses would continue to be administered pursuant to the Salary Administration Policy. Employees whose pay ranges move by an increment greater than 5 percent will occupy a lower position within their new range than they occupied in their old range, meaning that they will be eligible for merit adjustments over a longer period of time (or, in the case of certain employees formerly at the range maximum, will again become eligible for merit adjustments) until they reach the maximum of their new range. Capping the amount of range movement that is received by the employee in 2001 will assist us in managing the program within the constraints of our budget. CONCLUSION In conclusion, the Village's compensation program for its non - bargaining unit employees is and remains very competitive with those of comparable employers and with the terms of the collective bargaining agreements with Teamsters Local Union #714 and the Fraternal Order of Police. I believe that the recommendations presented herein are fair and appropriate, under all the circumstances, and that they can be implemented within the limitations of the 2001 Municipal Budget. Please; let me know if you have any questions concerning these recommendations. This matter will appear on the ' Active Agenda at your December 12 regular meeting I Stephen B. Veitch Village Manager /sv attachments Hay Manage rent Consultants 205 North Mrc^ gan Avenue Suite 4000 Chicaao IL 6063' -5792 Tel (312) 2283-'-S-00 Fax ;312) 225-'388 October 10, 2000 Confidential Mike Crotty Hay Assistant Village Manager Management � e of Oak Brook Village g 1200 Oak Brook Rd ! OakBrook, EL 60523 -225 Dear Mike: EXHIBIT "C" The Village of Oak Brook (the Village) recognizes the importance of reviewing its compensation program every three years to ensure the greatest possible return on its compensation investment. An externally competitive compensation program should enhance the Village's ability to attract, retain, and motivate employees. Therefore, the Village retained the services of Hay Management Consultants to review the compensation program and provide recommendations for the coming year. As part of this year's review, Hay evaluated nineteen new and changed positions, compared the Village's salary ranges to a customized peer group survey, and developed recommendations for salary ranges for the coming year. This letter contains our findings and recommendations. Please find the following items in this document: ➢ TABLE OF JOB EVALUATIONS: This table includes evaluations of the Village's new and slightly changed positions. ➢ MARKET CHART: The chart displays a comparison of the Village's salary ranges compared to market driven salary ranges. ➢ RECOMMENDED SALARY RANGES: This table shows a side -by side comparison of the Village's current graded salary structure to Hay's new recommended salary structure. TABLE OF JOB EVALUATION: Job evaluation is the process used to measure a fob's requirements, or job content. The job evaluation process measures each job using the same number of factors and compares the total fob to others at the Village. Appropriate job evaluation ensures that the relationships among the Village's jobs fairly reflect each job's complexity in relation to others. The end result is a numerical score based on job content and measured by job evaluation points. The total points for each job determines its salary grade. I -,% -,_ i Mike Crotty October 10, 2000 Page 2 All positions at the Village were evaluated using the Hay Guide Chart Profile Method of Job Evaluation. The evaluations are based on interviews with Department Heads and the position descriptions. The following factors are used in this method to determine the value of a position: Know -How: The sum total of every kind of skill -- however acquired -- in the j professional/scientific, management, and human relations areas necessary for acceptable job performance; Problem - Solving: The original "self- starting" thinking required by the job for analyzing, evaluating, creating, reasoning, arriving at, and making conclusions; Accountability: The measured effect of the job on expected end results as a function of the freedom the job has to take action to achieve those results, the magnitude of the expected results, and the direction of the job's impact on those results; and Special Conditions: The extent to which fine or gross motor physical effort, adverse work environments (dust, noise, cold, etc.), hazards or sensory demands add special weight to the job. The attached table contains Hay's recommendations for job evaluations and salary grades for the new and changed jobs. CURRENT RANGES COMPARED TO MARKET RANGES (MARKET CHART): To collect high quality compensation information, the Village conducted a custom survey of pay in comparable communities. Then, the Village forwarded the completed surveys to Hay for an analysis of competitiveness. Hay looked at the Village's salary ranges in comparison to the salary ranges in the comparable municipalities. For grades 1 — 9, the chart shows the Village's current ranges compared to the 66`h percentile market salary range minimum and maximum. For grades 10 - 11 the Village's current ranges compared to the 501h percentile market salary range minimum and maximum. The chart shows that the Village's salary ranges are more competitive in grades 1 — 9 than for grades 10 and 11. For grades 1 — 9, the Village tends to be more competitive for larger -sized jobs than for smaller sized jobs. The Village's salary ranges for grades 10 and 11 are below the market median salary ranges. Hay %coup r it Mike Crotty October 10, 2000 Page 3 RECOMMENDED SALARY STRUCTURE: Since the Hay system was installed in 1997, the Village has created two new salary grades 10 and 11. In Hay's experience, eleven grades are sufficient to accommodate all of the Village's jobs. While we recognize that the new grades were created to resolve discrepancies for jobs within the same department, we recommend these issues be addressed by slotting the jobs into the original recommended 11 grades. This will help to ensure the long -term integrity of the program. Therefore, Hay's recommendations return the structure back into eleven salary grades. I RECOMMENDED SALARY RANGES: Grades 1 -9 Grades 10 -11 ➢ Hay recommends the Village target its ➢ Hay has provided two alternatives for salary structure midpoints at the market grades 10 and 11. Option one targets 66" percentile. This will result in an midpoints at the market median and overall midpoint increase of 2.2 %. would result in a 4.2% overall midpoint increase. Option two targets the 66 1h percentile of the market and would result in a 6.6% overall midpoint increase. I trust this information meets your needs. Please call me at (312) 228 -1839 if you have questions or need further assistance. Sincerely, 'I Michael Haskell Technical Associate N .Y C O O O M W W 0 %-- %j-- O O co CU ..�. E 0 w p Z W W p cc O O M ^^ O O O M M M M M M M N 00 U• w cc w Q , 1� f� �t N N O O M M cD O 1, O O) t� t, I, t- to ; N N N N N N N N N �- N •- N r- �- � � � � ' � O fn O O r O O O O 1� f� CO co f� ;5 to to In Ln lf) M N N N a= �cr) LC) a)rn0000vacDacoco0000 a . 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O O Q Q O O O O O V O O O O O O O b9 O O O O O O O O O $ 6 a C\j 61), 6 tieleS lenuuy � C o o c c \ \ \ o • V tt .- M !'7 N T t 10-0 110-0 �0-0 0- N N 2 t1A� CO M M (C ([� M LO LO • J k N � (7) (Lo r- n O Y M N v O .- N O yam• f` co `Oa' U) (D O th fz N GO CD 16 (� afe O r 6IV9 6M9 6~A 69 Ica N 0 G N � N O (1y a_0 .- {! V O Co to CO to 00 .- GO M fD (^D `; '� - d N 69 M 69 c7 w M 69 of 40 v 69 M 69 a 69 co w O^ 69 69 C C N a� ��pp cD co 0 v � v co ^ � M LO ; o/ E O N O N M N .- M (NY O sf v Cq i z 69 GA 69 fA C7 69 CM'') 69 Vv fA Ln 69 1^ fA w 69 {O ,V N f` GO to M M N O (M co co ti M ^ to (l) cn cn (n (n N r' sr n �- O N V st N CO CO N �- .- I - C) w co M O f` C M GO C) (D I v M N M of to (D f` co M v o to a to o cq a Ln o to 0 in 0 in 0 Ln 0 to 0 Ln 0 o 0 to 0 to �+ -- -4 y co co M M M M M M M sT st st ,A co (n is GO I O N � O ca M v O n CV M (6 M GO M N C6 � (D fl- O r f\ (n c6 n (n M v 1 ch .- O O C 49 69 69 v 49-69 v (n 69 Ln fA O 69 O 69 f` 69 69 oro 69 Go 69 Lr� +c L. 'C (ND GO N C7 M to 0) N ^ M M (D yr+ O M O O (D v- � f` N a7 C) � f` C Go N CV M MM M f. M O Iq :: Ci (n (n Go (n C7 co (D co GO (D CV f- i St 69 6% EA 6% 69 fA fH 69 69 fA fA fA 69 C' N (On a (A ('nn M s! M co Lf) v N v N O 0 69 f` 69 6.- 49 C i v i C9t` ; 69 69 69 69 H 69 69 6(n 9 69 6M � m w O Y M V- Lo r- co O N cca n LO M Q Q i° (DD 1� M Q T- N N M M Iq (n Z Z (D r` o 1 Qi p .O- N M '�t M (, O It M CO M Lq r- to .- Q Q to U) CV 4 c .- r N N � Z Z LO O 7 '4 -.. _C r• r M GO r O (D N N V M M C7 MV Z Z Cl) (DD r � q1t cm co Go M $4,000,000 General Fund Certificates, Series 2001, of the Village of Oak Brook, Illinois," as presented and waive the full reading thereof. ROLL CALL VOTE: Ayes: 5 - Trustees Butler, Craig, Kenny, McInerney and Savino. j Nays: 0 - None. Absent: 1 - Trustee Caleel. Motion carried. Mr. Norene was in attendance of the meeting to answer any questions by the Village Board. He indicated the Aa2 rating by Moody was very favorable for the Village as to why the interest rate was so low for the General Fund Certificates. President Bushy complimented the Village Board for their fiscal responsibilities that the interest rates were so low. 4) ORDINANCE, #2000 -BU -EX3 -S -981, AN ORDINANCE ADOPTING THE BUDGET OF THE VILLAGE OF OAK BROOK FOR 2001: The ordinance adopts the 2001 Municipal Budget. The entire ordinance includes a revenue exhibit, an expenditure exhibit and a fund summary. The figures were presented in the proposed budget document reviewed by the Village Board at the Budget Workshop on December 2, 2000. Motion by Trustee McInerney, seconded by Trustee Kenny, to approve Ordinance #2000 -BU -EX3 -S -981, "An Ordinance Adopting the Budget of the Village of Oak Brook for 2001," as presented and waive the full reading thereof. ROLL CALL VOTE: Ayes: 5 - Trustees Butler, Craig, Kenny, McInerney and Savino. Nays: 0 - None. Absent: 1 - Trustee Caleel. Motion carried. President Bushy publicly commended Village Manager Veitch, Finance Director Langlois and appropriate staff for their efforts in compiling the Municipal Budget. i 5) RESOLUTION #2000 - SAP -EX2 -R -761, A RESOLUTION APPROVING THE SALARY PLAN AND SALARY ADMINISTRATION POLICY FOR NON - REPRESENTED EMPLOYEES FOR 2001: The Salary Administration Policy provides that pay grades will normally be adjusted annually, effective on January 1 of each year, with due consideration given to the change in the Consumer Price Index ( "CPI ") for the Chicago -Gary-Lake Co. region, as published by VILLAGE OF OAK BROOK Minutes Page 9 of 22 December 12, 2000 I i ORD #00 -BU- EX3 -S -981 2001 BUDGET RES ##00 -SAP- EX2 -R -761 2001 SLRY NON -REP a Lb the U. S. Department of Labor, for the twelve months ended September 30 of the preceding year; the Employment Cost Index (Salaries & Wages) for the Midwest region for the third quarter of the preceding year, as published by the U. S. Department of Labor; and the pay practices of the Village's comparable communities. In July of 2000, the Village again retained Hay Management Consultants to review the compensation program and provide recommendations concerning the Salary Plan to be effective as of January 1, 2001. The following would be implemented: a small number of employees with 12/31/00 salaries below the minimum of ' their new range would have their salaries adjusted to the new minimum as of 1/1/01; employees with 12/31/00 salaries falling within their new " range would receive, consistent with the Salary Administration Policy, the increment by which their pay range moved, up to a maximum adjustment (related to range movement) of 5 percent and merit adjustments and merit bonuses would continue to be administered pursuant to the Salary Administration Policy. Motion by Trustee Kenny, seconded by Trustee Savino, to adopt Resolution #2000 - SAP -EX2 -R -7619 "A Resolution Approving the Salary Plan and Salary Administration Policy for Non - Represented Employees for 2001" as presented and waive the full reading thereof. ROLL CALL VOTE: Ayes: 5 - Trustees Butler, Craig, Kenny, McInerney and Savino. Nays: 0 - None. Absent: 1 - Trustee Caleel. Motion carried. 6) RESOLUTION #2000 - FLSA -R -762, A RESOLUTION AMENDING THE FAIR LABOR STANDARDS ACT POLICIES FOR THE VILLAGE OF OAK BROOK: The resolution amends the Fair Labor Standards Act Policy in conjunction with the adoption of the 2001 Salary Plan. The Policy lists the titles of positions that are considered to be exempt under the FLSA. Two positions that were previously listed as FLSA exempt (i.e. Circulation Services Supervisor and Technical Services Supervisor) has been re- titled "Senior Librarian." The resolution includes the deletion of the Circulation Services Supervisor and Technical Services Supervisor from the list of exempt positions. Motion by Trustee Kenny, seconded by Trustee Savino, to adopt Resolution #2000 - FLSA -R -762, "A Resolution Amending the Fair l VILLAGE OF OAK BROOK Minutes Page 10 of 22 December 12, 2000 RES #00- FLSA -R -762 OB POLICY 2001 SALARY PLAN - NON - REPRESENTED EMPLOYEES Grade jPosition Minimum I Maximum Range 1 Golf Course Laborer $25,597 $9,ET $9,034 Receptionist 2 Police Records Clerk $27,585 $37,321 $9,736 Records Management Clerk 3 Accounting Assistant $29,953 $40,526 $10,573 Assistant Librarian Associate Golf Professional Purchasing & IS Clerk Secretary Water Billing Clerk 4 Communications Operator $32,830 $44,417 $11,587 Community Service Officer P.W. Employee I S. C. Maintenance Employee 5 Building Maintenance Technician $36,002 $48,708 $12,706 Communications Supervisor Deputy Village Clerk Librarian Payroll /Benefits Specialist P.W. Employee II 6 Accountant $39,724 $53,745 $14,021 Administrative Assistant Building Inspector Engineering Technician Fire Prevention Inspector P.W. Mechanic Sports Core Mechanic 7 Civil Engineer 1 $44,334 $59,982 $15,648 Food & Beverage Manager P.W. Head Mechanic Information Services Technician P.W. Foreman Senior Librarian 8 Accounting Manager $51,124 $69,033 $17,909 Executive Chef Chief Building Inspector Golf Course Superintendent Information Systems Specialist Police Sergeant P.W. General Foreman 9 Civil Engineer II $56,897 $76,978 $20,081 Fire Captain Police Lieutenant 10 Assistant Village Manager $60,340 $87,478 $27,138 Bath & Tennis Club Manager Deputy Police Chief Director of Info Svcs & Purchasing Golf Club Manager Library Director 11 Director of Community Development $65,091 $94,366 $29,275 Finance Director Fire Chief Police Chief Public Works Director Village Engineer Approved: 12 -12 -2000 Effective: 01 -01 -2001 Exhibit A (1 of 3) i N Z _O _H N a M O N d cm m a_ Q m x O r-I O O 00 N N N rl rl O N r-i r-4 O Q CL CL cc Q C a) > v c _a Q w 2 I- w 0 a dap c v m o `o w OUp � r i co 0 m 0 U 0 0 co Q V � L L co �� 3 Z:' o i3 E m > M a.0 v' KI /i7 444V111 Qin m I C7� O Naa 0 0 0 O am O 0 0 V 0 O c O Iw c ao w y N L C cn 0 E 0 U 0 U 0 F- z y W w ,. p Q : Z m U awl o a (� 0 U) 0 U 0 Q 0 U) 0 0 0 U 0 } a, c N c Lo m C c c� ca y c cv J L c0 2 c Q J 0 J 0 N 0 O 0 z w IT w Z Z cmc �M 0) — cm C7 Z m c c rn C w — c w — w cn 0 w F- 0 U 0 U 0 c w 0 �I yy V c t� 0 O .. _O cam} O U w �w E� T �0 m � � o m 4) L a cn O a 0 ma o O a o a= 0 O 0 0 0 O I I cn w y y Q C) y N L N Z > m mN Zw 9:cn �0 § m 2 > L ¢�U m 0 0 0 0 0 o 0 Z N w _j w _ ai N o _o a� co Z °' r �Q"' w Q Z y U y (p U (p U L �_ E y> _ y Q C �"' O y C Q) N C L Q' c��Z� a �0 t�a� 7 0 E� EZ� R) €m >o� w�i a� oVa�i off) o�ani °4Z) oT yin a 0 I a 0 a co 0 0 UO 0 U(/)o 0 0 Q 0 0 cn 0 Qo06 0 0 LU 0 N M 'R to t0 ti oD A r f'qa U W 0 W 0 W W 0 W 0 W W D W O0 Q W W 0 w 0 ILQU M O N d cm m a_ Q m x O r-I O O 00 N N N rl rl O N r-i r-4 O Q CL CL cc Q C a) > v c _a Q w 2 O 0 Z mg� O� tL OU W J N J W F- 0 J Q U W CL U) 0 Z Q J W W J Z Z NW W U a� LU O u. a W (q Z W a. QO CL v 4� J D W J J U I O Q a vy w a� a) _ O � N U U a V C �►" .a •O O cu .�• C cm tT a) N C C cm v) C 'C C LL LL Q Q O cu N N Q. ... a) U a o 0 0 •D "a -6 -6 EL a. a a. aa)i acui ami af°i a) a) a) a) L L t L a) C O O O O L L L C N N CL a a a N M co L7 c co co cn 6 % 61)9 61% � 0 06 0 0 = t` co co co co 0) () O 7 =3 :3 O O O O L t t C E_ N 0 0 0 0 m L L L L `a) a) N c 0 CL a a a CY) LO CD O t` N an It � � � � vy w a� a) M 4- O M a) rn m a Q F- m X W E N C N a m N U U •. .. 0 rn rn L6 N N a) a) fA v) C LL LL Q Q c0 cu N N U U U U O O O O •D "a -6 -6 EL a. a a. M 4- O M a) rn m a Q F- m X W E N C N a m ti M rn L6 a) C C O O a) a) C a) N N 3 c a) 0 = t` co co co co 0) () E N N N N N N 00 00 co 0o L N NNNNN .-. E_ N 'X 0) m c O L U O _ 0) co M M M C 'vi v;rnrnrnrn E co C) N N N N N U rn c O cn U U O can a N N N U .a .0 .0 C Q) N "-' 0 2 m c c� a) > co % C a cv •N a) a) cn V •c M Q a. O `) E U c o O �- W 'L .Op n. 00 V > N "oo O m " L j C O O W C O ti M a) U U a E a) a) a) L U cu 006 cQ��U 3 0 a 3 II �. cn O _0 a0 LO L cu C o Ur Lo (n C) X X co N 'O 0 0 N N L) r LO r co ca I i N ri �o E N N ri +-� L r-A o a) a) > O :. L U a) CL CL ~ N Q W M 4- O M a) rn m a Q F- m X W E N C N a m SALARY ADMINISTRATION POLICY - NON - REPRESENTED EMPLOYEES I. INTRODUCTION The Salary Administration Policy is intended to establish a compensation program which is both internally equitable and competitive with the prevailing wages paid within Oak Brook's Labor Market Area. It is also based on a system of performance evaluations designed to recognize and reward employees whose performance meets or exceeds standards established at the department level as well as standards which apply generally to employees of the Village of Oak Brook. For the purpose of maintaining wage levels that remain competitive in the appropriate market, adjustments to the Salary Plan are normally computed annually based on a percent change that considers the Consumer Price Index for the Chicago - Gary-Lake Co. region as published by the U. S. Department of Labor, the Employment Cost Index (Salaries & Wages) for the Midwest region as published by the U. S. Department of Labor, and the pay practices in the Village's comparable communities. The Board- approved percentage adjustment is applied to the minimums and maximums for all pay grades, with increases effective January 1st of the subsequent year. The Village Board may, in its discretion, authorize adjustments to the Salary Plan based on other factors (see Section II.C. below). The Village of Oak Brook's Salary Administration Policy, as well as the fringe benefits applicable to employees shall be further monitored every three years. An independent compensation consultant shall be retained by the Village to compare the compensation of Village of Oak Brook positions with similar positions in the region, and to compare the fringe benefits offered to Village of Oak Brook employees with fringe benefits available to other employees of the region. The consultant was retained in 1994 and will be retained every three years thereafter. The independent consultant will submit a report including recommendations for modifications in the Salary Plan and/or the fringe benefits package. II. GUIDELINES The following guidelines shall apply to review and modification of the Salary Plan: A. Review and Adjustment of Plan - When making annual adjustments to the Plan, the change in the Consumer Price Index for "all items" applicable to the Chicago -Gary -Lake Co. region as published for September 30th of each year by the U. S. Department of Labor, the Employment Cost Index (Salaries & Wages) for the Midwest region for the third quarter of each year as published by the U. S. Department of Labor and the pay practices of the Village's comparable communities will normally be considered. 'B. Range Spread Within Each Pay Grade - Grades 1 through 9 shall have a 35% spread from entrance to maximum salary paid. Grades 10 and 11 include department heads and shall have a 45% spread. C. Other Adjustments to the Salary Plan - The Salary Plan may, in the discretion of the Village Board and upon the recommendation of the Village Manager, be adjusted based on the evaluations and recommendations of an independent compensation consultant engaged by the Village of Oak Brook, or based on other factors as deemed appropriate by the Board. Approved: 12 -12 -2000 EXHIBIT B Page 1 of 5 Effective: n1 —01 -2001 III. STEPS 1. Obtain the September 30th Consumer Price Index and third quarter Employment Cost Index (Salaries & Wages) published by the U. S. Department of Labor. 2. Obtain salary data from the Village's comparable communities. 3. Determine the percentage adjustment and calculate the minimum and maximum for each grade accordingly. 4. Determine merit adjustment guidelines, which shall be designed to permit an employee performing at a "Meets Standards" level to progress through the salary range in approximately a seven year period. Employees performing at "Above Standards" or "Excellent" should progress through the range within a six or five year period, respectively. IV. MAINTENANCE The Village Manager shall be responsible for reviewing the data supporting the annual grade adjustment, as well as the performance salary guidelines, and submitting the revised Salary Plan to the Board of Trustees for its approval. The Village Manager shall also be responsible for engaging an independent compensation consultant 'once every three years, and forwarding the study, evaluations, and recommendations to the Village Board for its consideration. V. PROCEDURES i , A. Starting Rate at Initial Employment: Original appointments to any position will normally be made at the entrance rate. Upon recommendation of the department head, the Village Manager may approve initial compensation at a rate higher than the minimum rate in the pay range for the grade, provided that any such acceptance is based on the outstanding and unusual character of the employee's experience and ability over and above the minimum qualifications required for that position. 'B. Merit adjustments will be determined based upon the employee's performance as described in the Employee Performance Appraisal and the recommendation of the employee's department head, with review and approval by the Village Manager. Merit adjustments shall occur within the parameters of the Salary Plan and in no event shall it exceed the maximum of the range for the position. C. Salary Adjustment Schedule: It is the policy of the Village of Oak Brook that salary adjustments shall be made in a timely and orderly manner. Frequency of salary adjustments are based upon each employee's performance and the employee's position within the applicable grade. 1. Employees are evaluated at six month intervals for the first two years of employment. Thereafter, evaluations occur annually on the employee's anniversary date until the maximum compensation for the pay grade in which the employee's position is classified is reached. "Anniversary date" is determined as follows: I, Approved: 12 -12 -2000 EXHIBIT B Page 2 of 5 Effective;: 01 -01 -2001 (a) Generally, the anniversary date is the date of hire; (b) For employees going from part-time to full -time, status the anniversary date shall be the date the full -time position is assumed; (c) For employees whose position is simply reclassified to a new grade (i.e., the job duties of the existing position have evolved such that reclassification and possibly re- titling is warranted), the anniversary date remains the date of hire; (d) A promotion is deemed to have occurred when an employee assumes a new position in a higher pay grade and is performing substantially different duties than performed previously. For full -time employees promoted to a new grade and new position, the date of promotion is the new anniversary date; and (e) Promoted employees will be reviewed every six (6) months for one (l ) year after their promotion or until they reach maximum compensation for their respective pay grade. 2. Once an employee has reached the maximum compensation for the pay grade in which his/her position is classified, the employee's anniversary date reverts to January 1, and normal salary adjustments shall be effective as of that date. 3. Performance appraisals shall occur at least once each year, and may occur more frequently, if warranted. Special merit adjustments may occur when warranted and are not bound by the Salary Adjustment Schedule. D. Merit Bonus: Top -of -grade full -time employees who achieve an "Above Standards" or "Excellent" appraisal on the Employee Performance Appraisal Report shall receive a merit bonus annually in January of each calendar year as follows: Above Standards Excellent (Frequently Exceeds Standards) (Exceeds all Department Standards) $750 $1,500 Any such merit bonus shall not be considered a merit adjustment as provided in Section V.B. hereof. ,E. Special Merit Adjustments and Special Merit Bonuses: Department heads may recommend to the Village Manager, and the Village Manager may approve, special salary adjustments or special merit bonuses at intervals other than as provided in paragraph V.C. hereof. Such special merit adjustments or bonuses shall be based upon exceptional performance far exceeding the normal standards for the position, or exceptional service to the Village beyond the normal scope of duties expected for the position. Special merit adjustments or bonuses shall have no effect on the schedule for normal performance evaluations and merit adjustments. Special merit adjustments or bonuses are deemed to be extraordinary events, and may be granted only after notice to the Village Board, and an opportunity for the Board to disapprove the action. Approved: 12 -12 -2000 EXHIBIT B Page 3 of 5 Effective: nl-1 -2001 F. Village Manager: The Village Manager position is not included in the Salary Plan. The salary of the Village Manager may be adjusted only by action of the Village Board, subject to the terms of the current employment agreement in effect between the Board and the Village Manager. G. Promotions: In a case where an employee is promoted from one position to another, any increase in salary shall not be viewed as a merit adjustment, but shall represent recognition of the additional responsibility inherent in the new position. H. Performance Appraisal: The objectives of a performance appraisal are several: 1. To develop and improve performance and to maintain performance at the highest possible level. 2. To provide for variation in compensation and incentive based as directly as possible upon merit. 3. To assist supervisors in personnel administration and organizational management. It is the responsibility of the department head or supervisor completing the Employee Appraisal Report to review the appraisal with the employee in ep rson. During this meeting, the evaluator is expected to discuss the employee's performance in general and point out to the employee, first, the areas in which the employee is performing effectively, and, secondly, those areas where improvement is needed. The evaluator is also expected to solicit the employee's views on the appraisal. I. Working Out of Classification: Any full -time employee performing authorized work out of that employee's grade for a minimum of 14 days shall be entitled to additional compensation during the period of such employment. This compensation shall be 105% of the employee's present salary, but may not be greater than that of any employee currently working in the position in question. Further, an employee working out of classification shall be entitled to such additional compensation only if the employee spends the preponderance of time performing the duties of the position. LEVELS OF PERFORMANCE - DEFINITIONS Unsatisfactory (Consistently Below Standards) Performance so poor that little useful contribution is made. Such performance calls for immediate remedial action. It should be noted that employees performing at this level should be notified as soon as this becomes apparent. Under no circumstances should employees be allowed to remain in pay status until their scheduled evaluation date; they should be advised of their substandard performance and its possible consequences without delay. Below Standards In one or more of the significant standards, the employee is falling "below" standards. Approved: 12 -12 -2000 EXHIBIT B Page 4 of 5 Effective: 01-01-2001 Needs Improvement I Performance that would be expected during early periods on a new job as well as during the training phase of an individual's employment. Usually, the individual develops and moves beyond this level at the average rate set by the supervisor or Department Head, based on the standards of performance required. It should be used when an employee is in a training phase as well as when an experienced employee's performance has dropped from a previous higher level. Supervisors must set written action plans for each employee who is rated as needs improvement in each area where the rating applies as well as timetables and deadlines for the improvement to occur. Meets Standards (Consistently Meets Standards) Performance meets standards set by the Department Head. This generally applies to seasoned employees who shave completed their training phase and have accepted full responsibility for the completion of the duties of their position. The rating is not based on a comparison of the employee's performance with fellow employees in the same or similar position; it must be based solely on a comparison of the employee's performance to the standards set by the Department and communicated to the employee. Above Standards (Frequently Exceeds Standards) Performance of this caliber will be uncommon within each Department. The rating will apply to employee performance which exceeds all Department standards and is represented by outstanding achievements over and above the normal work assigned. Examples of the outstanding achievements must be documented and submitted with the Performance Evaluation form with an appropriate statement as to how the achievements favorably impacted the Department. Excellent (Exceieds all Department Standards) Performance of this caliber is exceedingly rare. It may occur in employees who are unusually gifted in a particular area, or whose skills surpass all standards set for the average employee. It may also be earned for excellent performance in response to an unusual occurrence which would normally not constitute an employee's regular duties and responsibilities. Examples of the employees particular achievements must be submitted with the Performance Evaluation form. Approved: 12 -12 -2000 EXHIBIT B Page 5 of 5 Effective: 01-01-2001