S-1099 - 01/25/2005 - SALARY ADMIN PLAN - Ordinances Supporting Documentsf J
VILLAGE OF OAK BROOK
Interoffice Memorandum
DATE: January 18, 2005
TO: Richard B. Boehm, Village Manager
FROM: Jeffrey P. Moline, Assistant Village Manager
SUBJECT: 2005 Salary Plan and Salary Administration Policy
The 2005 Salary Plan and 2005 Salary Administration Policy for the Village of Oak Brook effective January 1,
2005 as directed by the village Board is as follows:
The major tenets of the 2005 Salary Plan and Salary Administration Policy Include:
A) Extension of a 3.50% Annual Range Adjustment based on the review of comparable municipalities
surveyed by position and for annual base increases;
B) Possibility of an earned Merit Increase of 0% to 3.50% for "Excellent" performers;
C) 2005 Maximum Base Salary Increase of 7.00 %; and
D) Continuation of the Longevity Pay attached to the Performance Appraisal in the amounts of $400,
$500, and $600 for service of 10, 15, 20 years of service.
The Plan, similar to the Salary Plan and Policy of previous years, is comprised of a two tiered approach to
adjust the annual salaries of full time employees. The first tier, annual base salary escalator, is an increase
aimed at maintaining external market equitability by lifting the bottom and top of each pay range consistent
with the average increases being offered in comparable and surveyed municipalities. The second tier, the
meritorious pay increase, is an increase to an employee's base salary measured by individual performance and
structured to recognize and reward performance thereby establishing an internal market equitability.
Employees that have reached the top of their respective pay range receive only the range adjustment and
thereby stay consistent with the neighboring market.
Tier 1: Annual Base Salary Adjustment
The Village's Salary Administration Policy provides for pay ranges to be adjusted as of each January 1 with
due consideration given to the following annual variables:
1) The Change in the Chicago -Gary-Lake County "All Items" Consumer Price Index ( "CPI ") for the
twelve months ending on the preceding September 30, the Employment Cost Index for Wages &
Salaries ( "ECI ") published for the third quarter or retaining an independent consultant to perform a
salary study of pay grades;
2) The pay practices of the municipalities established through collective bargaining as the Village's labor
comparables; and
3) The Village of Oak Brook Budget Constraints.
2005 Salary Plan mm doc
The Salary Administration Policy also provides that the Salary Plan is further monitored by means of a
consultant pay and classification study on a triennial basis. As such, the Village retained the Hay Group in
2003 which was used to establish the 2004 Salary Plan. That review consisted of both an internal assessment of
job responsibilities relative to pay and an external market wage survey using the comparable communities that
were identified in the 1997 arbitration proceeding involving the Village and Teamsters Local 714 — Law
Enforcement Division. The market data included by staff to evaluate the external market included
Bloomingdale, Clarendon Hills, Downers Grove, Elmhurst, Hinsdale, Lombard, and Westmont. In addition,
according to the Bureau of Labor Statistics, U.S. Department of Labor, the CPI posted October 2004 as an
index to the CPI for September 2003 to September 2004 was 2.7% (BLS C.P.I. Bulletin attached).
As outlined, the 2005 Plan will maintain competitive pay scales for each of the eleven (11) established pay
grades. The annual adjustments to Employee Pay Grades with a 3.50% range increase are as follows:
Recommended
FY 2005 Salary Adjustment Plan
Employment
Grade
FY
Min
2004
Max
Range
Adjustment
FY 2005
Min
Max
Grade 1
28448
38489
3.50
29444
39836
Grade 2
30693
41526
3.50
31767
42979
Grade 3
33665
45548
3.50
34843
47142
Grade 4
36638
49570
'3.50
37920
51305
Grade 5
40012
54134
3.50
41412
56029
Grade 6
44149
59732
3.50
45694
61823
Grade 7
49273
66664
3.50
50998
68997
Grade 8
58599
79127
3.50
60650
81896
Grade 9
64277
86963
3.50
66527
90007
Grade 10
67152
97354
3.50
69502
100761
Grade 11
74315
107739
3.50
76916
111510
Tier 2: Annual Performance Based Merit Increase
The second tier of the annual salary adjustment for employees is the meritorious performance appraisal. As stated
in the Personnel Manual and Salary Administration Policy, 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 ment.
3. To assist supervisors in personnel administration and organizational management.
Merit adjustments are determined based upon the employee's performance as measured through the standard
Employee Performance Appraisal approved by the Village Manager for all departments. Merit adjustments shall
occur within the parameters of the Salary Plan with a minimum of 0.00% for employees performing "Below
Standards" to a maximum of 3.50% for "Excellent" performance and in no event shall it exceed the maximum of
the range for the position. The combination of the two (2) tiers results in a possible 7 00% increase for employees
that are moving through the salary range, or approximately 44% of the Village's full time employees
Longevity Pay:
Also included in the Salary Plan for 2005 is the continuation of the Meritorious Longevity Pay for topped out
employees based on years of service. The premise of this benefit is that employees are recognized for dedicated
service in that full time Oak Brook employees that receive a performance review score equating to "Meets All
Standards" performance shall receive an annual one (1) time lump -sum longevity pay beginning in their tenth
(1 Ot ") year of employment and commencing annually thereafter according to the following schedule:
2005 Salary PLan mm doc 2
Years 10 — 14: $400.00
Years 15 — 19: $500.00
Years 20 and on. $600.00
Amendment to Employment Positions:
Also included in the Amendment to the Salary Administration Policy are the following two proposals for
changes in existing full time positions:
A Creation of new position - Community Development Administrative Technician:
As recommended by the Community Development Director and Village Manager, this position is being
created to elevate the current secretary position of the Community Development Department to the
position, Community Development Administrative Technician. This change accounts for the additional
responsibilities above the current secretary description and recognizes the position for the responsible
functions related to community development, planning, and zoning processes assigned to this position
of this department. These additional responsibilities place the position above that of the current
secretary position and therefore an increase from Grade 3 to Grade 5 is proposed.
B. Assistant Librarian — Office Coordinator
As recommended by the Library Director and Village Manager, this position is being re- titled from
Assistant Librarian to Office Coordinator. The responsibilities and the pay will remain status quo.
This revision is made to reflect the requirements of the fob position in that, the title implies librarian
responsibilities and "Librarians," are required to have a Masters Degree in Library Science. This
position assists the Library Director with the office administration functions of the library.
Personnel Manual Amendments:
The following three amendments are incorporated into Ordinance 2005- PL -RR -S -1102, amending Article V of
the Personnel Manual and will become effective as of the date of approval of said ordinance.
1. VILLAGE OF OAK BROOK EDUCATIONAL AND TRAINING AID PROGRAM
The purpose of the educational aid program is to encourage employees and supervisors to pursue
continued education, which will benefit the employee as well as the Village of Oak Brook. This
amendment to the Oak Brook Education Policy amends the reimbursement guidelines by employees to
the Village for education courses requested by an employee to require 2 years of service after
reimbursement for a completed course. Note, the Oak Brook Board of Fire and Police Commissioners
unanimously supported the creation of a policy that would require reimbursement for training expenses
of newly hired public safety officers (mainly due to the high cost of training firefighter paramedics) for
those officers that would leave prior to completing two (2) years of service.
2. SERVICE AWARDS...
This amendment is to Miscellaneous Benefits, Section 5.17 (B), Service Awards, makes current the
Personnel Manual to include the new service award in the amount of a $250.00 Gift Certificate to
employees that serve the Village for 35 Years or more This amendment was approved by the Village
Board in 2004 by Ordinance 2004 -PL -RR -1093 and was awarded to Sergeant Marc DeLise (This
amendment is included as an amendment here solely for the purpose of updating the employees' copies
of the Personnel Manual).
3. BENEFITS AND DISABILITY PAYMENTS FOR NON -WORK RELATED, AND /OR WORK
RELATED INJURIES...
2005 Salary PLan mm doc 3
Amendment to Section 5.18(D) of the Personnel Manual, as indicated by the underlined text, corrects the
personnel manual to state that this provision applies to both non -work and work related disabilities.
"For the first three (3) months an individual is receiving a non -work and work related disability
payment from the IMRF, Police Pension Fund or Firefighters Pension Fund, the Village will
pay for its share of the cost of hospitalization and life insurance monthly premiums."
Attached is a copy of the 2005 Salary Plan that includes the Salary Plan and Salary Administration Policy. If
you have any questions or concerns, please advise.
2005 salary Plan mm doc 4
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Item S.I. &J.
AGENDA ITEM
Regular Board of Trustees Meeting
of
January 25, 2005
SUBJECT: 2005 Salary Plan and Salary Administration Policy and Amendment of the
Personnel Manual
FROM: Richard B. Boehm, Village Manager
BUDGET SOURCE /BUDGET IMPACT: Personnel Salaries
RECOMMENDED MOTION: I move to approve Ordinance 2005- SAP -EXI -S -1099
approving the 2005 Salary Plan and Amendments to the Salary Administration Policy and
approve Ordinance 2005- PL -RR -S -1102 Amending Article V of the Personnel Manual of
the Village of Oak Brook.
Background /History:
Attached is an ordinance amending the 2005 Salary Plan and Salary Administration Policy which
includes all salary schedule changes and position changes proposed to date for 2005 and an ordinance
amending Article V of the Personnel Manual as outlined in the memorandum dated January 18, 2005.
1. Ordinance approving the 2005 Salary Plan and Salary Administration Policy
The mayor tenets of the 2005 Salary Plan and Salary Administration Policy to be approved by
Ordinance 2005- SAP -EX 1 -S -1099 include: `
A) Extension of annual adjustments of 3.50% for all full time employees with an equal increase to
the minimum and maximum salary range for each pay grade;
B) Possibility of an earned meet increase of 3.50% for "Excellent" performers; and
C) Continuation of the Longevity Pay attached to the Performance Appraisal in the amounts of $400,
$500 and $600 for service of 10, 15, and 20 years of service.
In addition, there are two (2) position changes in the 2005 Salary Plan and Administration Policy.
The first is the position of Community Development Administrative Technician. This position is
created to recognize the actual responsibilities required of the position now classified as a secretary in
the Community Development Department. This position would move from Grade three (3) to Grade
Last saved by Administrator V \AGENDA \AGENDA 2005 Salary Plan doc
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(5). The second change is to re -title the position of Assistant Librarian to Office Coordinator to
match the true responsibilities and requirements of the position.
2. Ordinance amending Article V, Oak Brook Personnel Manual
The amendments included in Ordinance 2005- PL -RR -S -1102 amending Article V of the Personnel
Manual include:
A. Section 5.13 Training, Development and Education: Amends the current Educational and
Training Aid Program for full time employees to require a two (2) year commitment to the
Village post reimbursement for employee requested educational course -work; and
B. Section 5.18 Benefits and Disability Payments: This revision extends the three (3) month
provision for hospitalization and life coverage to work related injuries as opposed to only non -
work related injuries.
If you have any questions or concerns, please feel free to contact me.
Recommendation:
Staff recommends that the Village Board approve Ordinance 2005- SAP -EXl -S -1099 approving the
2005 Salary Plan and Amendments to the Salary Administration Policy for Non - Represented
Employees and approve Ordiannce 2005- PL -RR -S -1102 approving amendments to Article V of the
Oak Brook Personnel Manual.
Last saved by Administrator V \AGENDA \AGENDA 2005 Salary Plan doc
Last panted 1/21/2005 2 47 PM