S-1061 - 02/10/2004 - SALARY ADMIN PLAN - Ordinances Supporting DocumentsFOAk
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VILLAGE OF OAK, BROOK
Village Board Transmittal Memorandum
0QUN I .
DATE: February 6, 2004
SUBJECT: 2004 Salary Plan and Salary Administration Policy for Non -Union Employees
FROM: Richard B Boehm, Village Manager
RECOMMENDATION: That the Village Board adopt an ordinance approving the 2004 Salary
Plan and amendment to the Salary Administration Policy for non - represented employees of the Village
of Oak Brook.
The proposed 2004 Salary Plan and 2004 Salary Administration Policy for the Village of Oak Brook effective
January 1, 2004 is as follows
The Mayor Tenants of the 2004 Salary Plan and Salary Administration Policy Include
A) 2004 Maximum Base Salary Increase of 7 00% (Combined Adjustment and Merit),
B) Extension of an Annual Base Salary Adjustment based on the Hay Group Study and Staff Review and
Recommendation,
C) Revision to the Performance Based Merit Pay Program for Full Time Employees;
D) Replacement of the Merit Bonus Pay Plan for Topped Out Employees with a new Longevity Pay
attached to the Performance Appraisal, and
E) Institute a new 7 and '/2 percent employee contribution towards health insurance premiums
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 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
Tier 1 Annual Base SaIM 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
The proposed Salary Administration Policy also provides that the Salary Plan be 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 to complete a Salary Review to be reviewed and implemented in 2004 That review consisted of both an
SALPLN2004 doc
internal assessment of fob 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 in the Hay Group analysis came
from Downers Grove, Elmhurst, Glen Ellyn, Lombard, Westchester, Western Springs, Wheaton, and
Willowbrook. In addition, staff reviewed and researched various elements of the pay plan against similar
programs of additional communities (i e., longevity pay, ment pay plans).
As proposed, 2004 will stand as an overall salary adjustment year with distinct percentage increases to the pay
ranges at both the minimum and maximum ends of the range. Similarly, employees receive the similar grade
percentage increase. The proposed annual adjustments to Employee Pay Grades based on the Hay Study and
Staff review are as follows
Recommended
FY 2004 Salary Adjustment Plan
Employment
Grade
FY
Min
2003
Max
Adjustment
Min
FY 2004
Max
Grade
27420
37098
3.75
28448
38489
Grade 2
29549
39979
3.87
30693
41526
Grade 3
32086
43412
4.92
33665
45548
Grade 4
35168
47581
4.18
36638
49570
Grade 5
38566
52177
3.75
40012
54134
Grade 6
42553
57573
3.75
44149
59732
Grade 7
47492
64254
3.75
49273
66664
Grade 8
54765
73950
7.00
58599
79127
Grade 9
60949
82461
5.46
64277
86963
Grade 10
64638
93709
3.89
67152
97354
Grade 11
69727
101087
6.58
74315
107739
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 the all departments 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, nor shall the combined ment increase with the annual adjustment increase exceed a base salary
increase of 7 00% . As FY 2004 stands as an overall Salary Adjustment Year, each Employment Grade will have a
different maximum ment increase that employees within the range can receive for that respective grade. For
example, employees moving within the pay range in Grade 3 can earn an additional 2 08% increase to their base
salary assuming the employee has earned the equivalent in his/her performance review Likewise, employees
moving within the range in Grade 7 can earn an additional 3 25% increase to their base salary
Longevity Pay
Also included in the Salary Plan for 2004 is the replacement of the Merit Bonus Pay for topped out employees
with a new Meritorious Longevity Pay 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
SALPLN2004 doc
beginning in their tenth (10`") year of employment and commencing annually thereafter according to the following
schedule
Years 10 — 14 • $400.00
Years 15 — 19• $50000
Years 20 and on $600.00
Attached is a copy of the 2004 Salary Plan that includes the Salary Plan and Salary Administration Policy If
you have any questions or concerns, please feel free to contact me prior to the Village Board meeting on
February 10, 2004
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SALPLN2004 doc
1�1 il
9 B 2) staff. ROLL CALL VOTE:
Ayes 5 - Trustees Aktipis, Caleel, Konn, Miologos and Yusuf
Nays 0 - None
Absent. 1 - Trustee Craig Motion carried.
D3) ORDINANCE 2004 - SAP -EXI -S -1061 "AN ORDINANCE ORD 04- SAP- EXl -S-
APPROVING THE 2004 SALARY PLAN AND AN AMENDMENT PLN &AMENDY
TO THE SALARY ADMINISTRATION POLICY FOR NON- ADMN POLICY
REPRESENTED EMPLOYEES OF THE VILLAGE OF OAK rruK N sN-
1
BROOK, ILLINOIS" EMPLOYEES
The proposed 2004 Salary Plan and 2004 Salary Administration Policy
for the Village of Oak Brook effective January 1, 2004 is as follows-
The Major Tenants of the 2004 Salary Plan and Salary Administration
Policy Include-
A)2004 Maximum Base Salary Increase of 7.00% (Combined
Adjustment and Merit);
B) Extension of an Annual Base Salary Adjustment based on the Hay
Group Study and Staff Review and Recommendation;
C) Revision to the Performance Based Merit Pay Program for Full Time
Employees;
D)Replacement of the Merit Bonus Pay Plan for Topped Out
Employees with a new Longevity Pay attached to the Performance
Appraisal; and
E) Institute a new 7 and % percent employee contribution towards
health insurance premiums.
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. 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.
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
VILLAGE OF OAK BROOK Minutes Page 8 of 15 February 10, 2004
9 , B 3) 1)
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.
The proposed Salary Administration Policy also provides that the
Salary Plan be 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 to complete a Salary Review to be reviewed and
implemented in 2004. 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 in
the Hay Group analysis came from Downers Grove, Elmhurst, Glen
Ellyn, Lombard, Westchester, Western Springs, Wheaton, and
Willowbrook. In addition, staff reviewed and researched various
elements of the pay plan against similar programs of additional
communities (i.e., longevity pay, merit pay plans)
As proposed, 2004 will stand as an overall salary adjustment year with
distinct percentage increases to the pay ranges at both the minimum and
maximum ends of the range Similarly, employees receive the similar
grade percentage increase. ,
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 merit.
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 the departments
VILLAGE OF OAK BROOK Minutes Page 9 of 15 February 10, 2004
i
- A
9 B. 3)
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, nor shall the combined ment increase with the annual
adjustment increase exceed a base salary increase of 7.00% . As FY
2004 stands as an overall Salary Adjustment Year, each Employment
Grade will have a different maximum ment increase that employees
within the range can receive for that respective grade. For example,
employees moving within the pay range in Grade 3 can earn an
additional 2.08% Increase to their base salary assuming the employee has
earned the equivalent in his/her performance review. Likewise,
employees moving within the range in Grade 7 can earn an additional
3.25% increase to their base salary.
Longevity Pay:
Also included in the Salary Plan for 2004 is the replacement of the
Merit Bonus Pay for topped out employees with a new Meritorious
Longevity Pay 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 (10th) year of
employment and commencing annually thereafter according to the
following schedule:
Years 10 — 14: $400.00
Years 15 — 19: $500.00
Years 20 and on: $600.00
Motion by Trustee Caleel, seconded by Trustee Korn, for passage of
Ordinance 2004 - SAP -EXI -S -1061, "An Ordinance Approving the 2004
Salary Plan and an Amendment to the Salary Administration Policy for
Non - Represented Employees of the Village of Oak Brook, Illinois."
ROLL CALL VOTE:
Ayes: 5 - Trustees Aktipis, Caleel, Konn, Miologos and Yusuf.
Nays: 0 - None.
Absent. 1 - Trustee Craig. Motion carried.
4) RESOLUTION 2004 - FLSA -R -875, "A RESOLUTION AMENDING RES 04- FLSA- R -875-
FAIR LABOR STDS
THE FAIR LABOR STANDARDS ACT POLICIES FOR THE POLICIES
VILLAGE OF OAK BROOK"
The Resolution amends the Village of Oak Brook Fair Labor Standards
so that they conform to current law and alters certain titles of positions
as they are defined in the Personnel Manual.
VILLAGE OF OAK BROOK Minutes
Page 10 of 15 February 10, 2004