HomeMy WebLinkAbout2005-10-19
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BOARD OF SUPERVISORS
FINAL
OCTOBER 19, 2005
COUNTY OFFICE BUILDING
4:00 P.M., MEETING ROOM 235
JOINT MEETING WITH ALBEMARLE COUNTY SCHOOL BOARD
1. Call to Order.
2. Compensation and Medical Insurance Report.
3. Matters not Listed on the Agenda from the Board and School Board.
4. Adjourn.
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ACTIONS
Joint Meeting with Albemarle County School Board of October 19, 2005
October 21, 2005
AGENDA ITEM/ACTION ASSIGNMENT
1 . Call to Order.
. Meeting was called to order at 4:03 p.m. by the
Chairman, Mr. Rooker, and School Board Vice-
Chairman, Ms. Friedman. All BOS and School
Board Members were present (note: Mr. Walker
arrived at 4:05 p.m.). Also present were Bob
Tucker, Kevin Castner, Pam Moran, Larry
Davis, Kimberly Suyes, Lorna Gerome, Tom
Foley, Roxanne White, Jackson Zimmerman,
Melvin Breeden, Jennifer Johnston and Debi
Moyers.
Non-Agenda.
. Forrest R. Marshall, Jr., a former Board of
Supervisor member, asked the Board to
consider renaming the Meadow Creek Parkway
to the John W. Warner Parkway. Said he has
done so much for this community and Senator
Warner needs to be honored in some way.
This was tabled for discussion to the end of the
meeting by the Chairman, Mr. Rooker.
2. Compensation and Medical Insurance Report.
. PRESENTED by Kimberly Suyes.
. Ms. Moynihan asked who the Top 7 were within Kimberly Suyes: Email Board members
the 30 competitive markets. Ms. Gerome said it information on top seven (7) organizations
varies. They take the top quartile for each step. within each step.
Ms. Moynihan asked if it varies, who are the 7
that are most often in the top seven. Ms.
Gerome said the four consistent ones were
Loudoun, Prince William, Charlottesville and
Fluvanna.
. Mr. Rooker asked for a color copy of the graphs Kimberly Suyes: Email Board members the
shown on page 7 of the slide show presentation Power Pointe presentation.
handout.
. ACCEPTED, by a vote of 6:0, the following
projections for FY06-07 budget preparation:
1 . 2.5% increase in the classified salary scale.
2. 3.95% merit pool for classified staff.
3. Fund teacher increases to reach and/or
maintain top quartile (including 3.65%) to
be distributed along the scale.
4. Continuation of a longevity increase for
teachers.
5. Anticipate a 5% increase in medical plan
costs.
6. Anticipate a 7% increase in dental plan
costs.
. The Board recessed at 5:06 p.m. and reconvened
at 5:08 p.m.
3. Matters not Listed on the Agenda from the Board
and School Board.
Dennis Rooker:
. Discussed the earlier request by Forrest
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Marshall. Mr. Rooker said he will speak to
David Brown of the City to see what his
thoughts are.
. Reported on his attendance at the VDOT
meeting yesterday in Culpeper.
Sally Thomas:
. Stated she will be going to VML Conference
and attendin Monda and Tuesda sessions.
4. Adjourn.
. The meetin was ad'ourned at 5:22 .m.
2
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COUNTY OF ALBEMARLE
EXECUTIVE SUMMARY
AGENDA TITLE:
Compensation and Medical Insurance Report
AGENDA DATE:
October 19, 2005
ITEM NUMBER:
ACTION: X
INFORMATION:
SUBJ ECT/PROPOSALlREQU EST:
Approval of budget development projections for FY 06-07
CONSENT AGENDA:
ACTION:
INFORMATION:
STAFF CONTACT(S):
Tucker, Foley, White, Gerome, Suyes, Zimmerman
ATTACHMENTS: Yes
LEGAL REVIEW: Yes
REVIEWED BY:
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BACKGROUND:
In November 2000, the School Board and Board of Supervisors approved a Total Compensation Strategy to target
employee salaries at 100% of market median and benefits slightly above the market at 105%. The adopted market
localities approved by the Boards are shown in Enclosure #1.
DISCUSSION:
To maintain competitive compensation based on the adopted strategy, two separate, but related actions are required:
1. Ensure a competitive salary scale so that the County is able to attract and recruit new employees.
2. Ensure current employees are rewarded for performance by maintaining internal equity in their pay range,
ensuring competitive salary for experience and maintaining market competitiveness for similar skills.
To adhere to the Boards' adopted strategy, the following processes are implemented each year:
1. Annually survey the adopted market to determine the salary scale adjustment implemented in those
localities/schools for the current fiscal year.
2. Annually survey the adopted market to determine the average total salary increase (inclusive of cost of living
adjustments, merit, step and other increases) granted employees in those localities/schools for the current
fiscal year.
3. In addition, on a tri-annual basis, the process includes surveying our adopted market not only on scale
adjustments, but gathering information on ranges and actual average salaries of a number of benchmark
positions. This allows for a more in-depth analysis of our salaries and can identify positions that may
need further review. The benchmark survey occurred two years ago.
4. The data from steps 1, 2 and 3 is used to determine if the budget actions implemented in the current year
have achieved competitive positioning.
5. The data from steps 1, 2 and 3 is analyzed to ascertain where the salary scales (both classified and
teacher) for Albemarle County stand relative to the market and arrive at recommendations for next year's
salary scale increase.
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Aaenda Title: Compensation and Medical Insurance Report
Aaenda Date: October 19, 2005
Page 2
6. Obtain data on what other organizations are projecting for salary increases for the next fiscal year through a
compensation database (WorldatWork. Eastern Region). This data is used to project the merit pool increase
and develop the teacher scale, including step increases.
In March 2004, the Joint Boards adopted compensation strategies for specific positions to address competitiveness in
certain areas as follows:
1) Teachers _ Target market position at top quartile of adopted market. The School Board established a short
term goal to reach the bottom of the top quartile within a two year period. Once this short term goal has been
achieved, a further assessment of competitiveness and additional recommendations would be provided.
2) Positions recruited from outside our adopted market - Identify competitive market salaries for specific
localities within our adopted market that compete with Albemarle for those positions. This subset of our
adopted market should address cost of living issues and target competitive market position. These localities
represent areas that are in Metropolitan Statistical Areas (MSA), both above and below Albemarle in cost of
living and currently include: Hanover County, Loudoun County, City of Charlottesville, Prince William County,
Spotsylvania County, Chesterfield County, City of Chesapeake, City of James City County, and City of
Roanoke.
This report provides the supporting analysis and recommendations to achieve the adopted strategies for FY06-07,
which the Boards may use to provide FY06-07budget guidance to the County Executive and Superintendent. It is
understood that all final funding is subject to, and based upon, available revenues and Board direction.
Section 1: Board Adopted Process for Compensation Strateav: Market Analvsis and Proiections
The following information is provided to both Boards to consider in providing guidance for the development of the
FY06-07 budget.
Step 1: FY05-06. Survey the market to determine if the scale adiustment implemented for classifiedl
administrator and teacher pay scales achieved the strategy.
Classified/Administrator Scale Adiustments- Tamet median of adooted market
A competitive scale is important in attracting new hires. For classified employees, the scale adjustment
impacts new hires and any employees with pay rates below the new minimums. The Albemarle County
scale was adjusted by 3% in FY05-06 based on data that showed our scale was below market by 0.9%
and projection data indicated a 2.1 % increase. In reviewing the salary scale data, our adopted market
median scale adjustment was 2.74% (See enclosure # 2), so our current scale is slightly below current
market (0.26%).
Step 2: FY05-06. Survey the market to determine if the total salary increase for classified pay
implemented achieved the strategy.
Classified Total Salary Increases - Tamet median of adooted market
Based on data showing that our salaries were 0.7% below market and the projected increase was 3.7%,
our salary increase for the FY05-06 merit pool was 4.4%. The median salary increase amount
implemented by our adopted market in FY05-06 was 4%, which results in our FY05-06 salaries remaining
below market by 0.30%. Enclosure #2.
Total Salary Increases for Positions recruited nationallv/reqionallv- Tarqet median of subset of adooted
market
Data was collected on benchmark positions for School Division and Local government that indicate we
have improved market positioning. This strategy was phased in over a two year period. Currently,
benchmark positions range from 2.83% above market to -7.72% below market, a significant improvement
from FY04-05, when the range was below market from -9.85 to -20.0%. Based on this data, we are not
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Aaenda Title: Compensation and Medical Insurance Report
Aaenda Date: October 19, 2005
Page 3
currently recommending additional increases, but will continue to collect and monitor market
competitiveness.
Teacher Scale Adiustments- TarQet top Quartile (75th oercentile) of adooted market
For teachers, the scale adjustment impacts actual salaries. Data indicates that our teacher scales are in
the top quartile at minimum, 5 year, 10 year, 20 year and 25 year, however, did not reach the top quartile
at 15 and 30 year. Data for step 15 is anomalous due to other Division's scales not extending to a full 30
steps. Enclosure #3.
Step 3: Projections for FY06-07. Based on current market position and scale/salary projections,
determine the changes necessary to achieve the Board approved strategy using the WorldatWork,
Eastern Region data.
Classified / Administrator Scale Adiustments
The scale adjustment impacts new hires and any employees with pay rates below the new minimums.
. Adopted Market Salary Scale Median: 2.74%
. Albemarle Scale Relative to Market: Below market 0.26%
. Worldatwork projection: 2.3% increase
. Recommended scale adjustment: 2.5%
Classified / Administrator Salary Increase (merit (001)
. Adopted Market Median increase:
. Albemarle Salary Increase Relative to Market:
. Worldatwork projection for Eastern Region( including Virginia):
. Recommended increase:
4%
Below market 0.30%
3.65%
3.95%
Teacher Scale and Teacher AveraQe Salary Increase
The teacher scale is based on the projected total increase obtained from WorldatWork. This survey
projects a 3.65% salary increase. Any increase would include the step increase. Our strategy regarding
the teacher scale has been to target $1000 above the minimum. As data indicates, we are not reaching
our target at the maximum, the teacher scale will be designed to reflect an emphasis on reaching the top
quartile to include emphasis on the higher end of our scale. There is a significant variance between
divisions in the top quartile pay for highly experienced teachers. As a long term strategy, the School
Board may wish to examine if the minimum of the top quartile is sufficient to meet competitiveness goals
when the variance is -30% in pay.
Section 2: Benefits StrateClV: Proiections for Medical and Dental Insurance Premiums
FY05-06 Plan Year
The Boards approved the 2005-2006 medical insurance premiums and annual budgeted Board contribution of $5860.
The objectives of the Health Care Executive Committee (HCEC) in developing recommendations regarding the
medical plan were as follows:
. continue to offer affordable options to employees
. maintain the reserves at approximately 15 % of total plan costs
. maintain our competitive position for benefits at 105% above market
. modify plan design slightly to reflect current employer-provided health care plan practices.
The HCEC proposed to continue offering three different medical plans. Offering three plans recognizes the realities of
increasing medical insurance costs and gives employees an opportunity to choose between different plans and
premiums to best meet their needs.
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Aaenda Title: Compensation and Medical Insurance Report
Aaenda Date: October 19, 2005
Page 4
Based on employee feedback from previous years' open enrollment, a new process was introduced for FY05-06. All
employees received a well designed in-house communication piece describing all benefits. To make the open
enrollment process easier and more convenient for employees, an open enrollment website was utilized. Additionally,
employees with special concerns or uncomfortable with the online enrollment could choose to have an individual
appointment with a member of the Human Resources Benefits Team. Survey feedback indicates that employees
found the communications clear and easy to understand and the website convenient and user friendly.
Wellness Initiatives
As a long term strategy to control medical costs, the Health Care Executive Committee recommends funding wellness
initiatives to include: health risk assessments, incentives for smoking cessation and weight loss, etc. Several wellness
initiatives will be discussed at the meeting.
FY06-07 Plan Year Projection - Medical and Dental
Based on claims data and reserve balance, along with trend information provided by Palmer & Cay Benefits
Consultants, our estimated medical costs increase for FY06-07 are 5%. Dental insurance costs increase are
estimated at 7%. As we have just started the new plan year, staff will continue to monitor claims experience and
develop recommendations for both plan design and premiums as part of the County Executive's and Superintendent's
budget proposals.
Section 3: Update on Compensation Initiatives
Long Term Classification Plan
In 1996, all Local Government and School Division positions were reviewed and classified using the job evaluation
plan that was implemented at that time, based on the adopted recommendations by the compensation consultant
Hendricks & Associates, Inc. The job evaluation system is a point factor system consisting of seven factors and is
used to assess the internal value of positions. Since this comprehensive review, classification has occurred when:
. Market data indicated that review was necessary;
. Supervisor requested review;
. Internal equity issues were identified.
This approach to classification has resulted in many positions becoming out of alignment with regard to internal equity.
To address this, a schedule for comprehensive review of all departments on an ongoing basis was started July 2004.
Priorities are set based on identified internal equity issues, substantial changes in position descriptions and existing
market data. All positions in the following departments were reviewed over the past fiscal year: Community
Development, Parks and Recreation, Public Safety, General Services, Building Services and Transportation.
Local Government Total Rewards
At the June 26, 2003 meeting, the Board of Supervisors directed staff to begin the review of the County's reward
and performance systems to ensure that they are aligned with our high performance strategies for customer
service, continuous quality improvement and the delivery of efficient and effective County services. The County's
human resources systems must reward, motivate, and sustain customer service focused behaviors. In response
to the Board's direction, a team was formed to develop a "total rewards" strategy. The team reviewed the County's
current merit compensation and performance management systems, solicited employees' perceptions about the
current system and evaluated changes that would support our pay and performance philosophy. At the September
2004 meeting, the Board of Supervisors approved the recommendations of the Total Rewards team and has
implemented the Employee Recognition Program and a Revised Merit Pay for Performance matrix. Staff is
continuing the evaluation of skill and competency differentials and broadbanding.
Note: The School Division is currently collecting feedback and assessing options regarding development of a total
rewards strategy.
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AQenda Title: Compensation and Medical Insurance Report
AClenda Date: October 19, 2005
Page 5
Employee RecoClnition ProQram (Implementation occurred mid FY05)
The Employee Recognition Program is one component of the Total Rewards strategy that addresses the need to
acknowledge extraordinary employee contributions. Program objectives are as follows:
. Provide the employees of Albemarle County Local Government a set of performance criteria so that they
may identify exemplary, deserving behaviors in an employee;
. Give the employees of Albemarle County Local Government options to formally recognize and reward
employees for exceptional performance.
. Provide individual departments with the flexibility and guidelines to exercise this program that best fits
that department's functions and culture.
Funding for this program is provided at the departmental level, based on the number of FTE's in the department.
Last spring, Human Resources worked with Departments to define those standards at the departmental level so
that consistent, clear expectations of performance are established. Information on return on investment will be
provided at the end of this fiscal year.
Merit Pay for Performance (Implementation FY06)
Eligible employees receive an annual merit increase, effective July 1. The amount of the increase has been based
on a formula that includes the following factors: an employee's performance evaluation rating, an employee's salary
in relation to the midpoint of their paygrade, the merit pool percentage increase, and the available funding within
their departmental pool. Available funding was calculated by multiplying the proposed market adjustment by the
salary mid-points. Based on employee and manager feedback, the following issues were identified with regard to
this merit plan:
. The formula is complicated and difficult to understand due to the number of factors in the formula and
the pool concept;
. Employees are not able to establish the link between their performance and the reward due to the
variable pool;
. Available funding can impact the merit pool for a department which then impacts the merit amount
received by employees;
. The small pool amount does not adequately differentiate performance; and
. The merit system is not consistent with the Board strategy to pay employees who "meet performance or
exceed expectations" at the market rate.
Based on these inherent problems in the current merit system, the Total Rewards team proposed a Merit matrix
designed to continue to reward employees with an annual salary increase based on the market data and
Worldatwork. In addition, a fixed merit amount will be added to the salary increase, based on the relation of the
employees' salary to midpoint and the level of performance This merit matrix was adopted by the BOS for a July
2005 effective date and is consistent with the Joint Board adopted strategy to pay employees at market rate and
ensure that high performing employees whose salaries may be at or above the midpoint will not receive less than
the market increase. This option is also simple to communicate and administer. Additionally, the number of
performance rating categories have been expanded in FY05-06 from three to five in order to allow managers more
flexibility in differentiating performance. Although some of the details of the matrix may be revised, the following
example illustrates the matrix merit concept:
Successfully Meets and
Position in Pay Fails to Meet Needs Occasionally
Grade Range Expectations Development Meets Exceeds Exceptional
Expectations Expectations
Below No Increase Market - 1 % Market + 1 % Market + 1.5% Market + 2%
Midpoint
Above No Increase Market - 1 % Market Market + 0.5%
Midpoint Market + 1 %
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Aaenda Title: Compensation and Medical Insurance Report
Aaenda Date: October 19, 2005
Page 6
RECOMMENDATION:
Budget Development Projections for FY06-07 based on adopted methodology:
These projections are presented to the Boards for their consideration in providing direction to both the County
Executive and Superintendent for FY06-07 budget preparation. It is noted that all final funding is subject to, and
based upon, available state and local revenue.
1) 2.5% increase in the classified salary scale.
2) 3.95% merit pool for classified staff.
3) Fund teacher increases to reach and/or maintain top quartile (including 3.65%) to be distributed along the
scale.
4) Continuation of a longevity increase for teachers.
5) Anticipate a 5% increase in medical plan costs.
6) Anticipate a 7% increase in dental plan costs.
ATTACHMENTS
A - Competitive Market List
B - 2005-2006 Salary Survey
C - Teachers' Scale - Top Quartile Graph
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Enclosure # 1
Albemarle County
Adopted Competitive Market
Augusta County
City of Charlottesville
City of Chesapeake
City of Danville
City of Harrisonburg
City of Lynchburg
City of Roanoke
City of Staunton
City of Virginia Beach
City of Williamsburg
Buckingham County
Chesterfield County
Fauquier County
Fluvanna County
Greene County
Hanover County
James City County
Loudoun County
Louisa County
Madison County
Montgomery County
Nelson County
Orange County
Prince William County
Roanoke County
Roekingham County
Spotsylvania County
Albemarle County Service Authority
Martha Jefferson Hospital
UV A Health Systems
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Enclosure #2-% increase
2005-2006 Salary Survey
Classified Scale
Locality
Augusta County Government
Augusta County Schools
Buckingham County Government
Buckingham County Schools
Charlottesville City Government
Charlottesville City Schools
Chesapeake City Government
Chesapeake City Schools
Chesterfield County Government
Chesterfield County Schools
Danvllle City Government
Danvllle City Schools
Fauquier County Government
Fluvanna County Government
Fluvanna County Schools
Greene County Government
Greene County Schools
Hanover County Government
Hanover County Schools
Harrisonburg City Government
Harnsonburg City Schools
Loudoun County Government
Loudoun County Schools
Louisa County Government
Louisa County Schools
Lynchburg City Government
Lynchburg City Schools
Madison County Schools
Montgomery County Government
Montgomery County Schools
Nelson County Government
Nelson County Schools
Orange County Government
Orange County Schools
Pnnce William County Government
Pnnce William County Schools
Roanoke City Government
Roanoke City Schools
Roanoke County Government
Rocklngham County Government
Rocklngham County Schools
Spotsylvanla County Government
Staunton City Government
Staunton City Schools
Virginia Beach City Government
Total Salary Increase (%)
4.00%
4.00%
3.00%
2.10%
4.00%
5.26%
4.00%
4.50%
4.00%
3.00%
blank
2.55%
5.00%
2.50%
6.00%
2.50%
5.25%
3.00%
3.00%
5.00%
500%
6.00%
6.00%
5.00%
4.96%
0.00%
5.00%
5.50%
3.00%
4.00%
3.50%
5.00%
3.30%
6.00%
4.00%
600%
3.00%
2.00%
4.00%
3.00%
5.00%
2.00%
6.00%
5.00%
6.50%
Scale Increase (%)
2.50%
4.00%
3.00%
0.00%
4.00%
4.00%
0.00%
0.00%
1.50%
1.50%
3.00%
2.55%
0.00%
0.00%
6.00%
2.50%
0.00%
1.50%
3.00%
2.93%
5.00%
3.00%
3.00%
0.00%
4.96%
0.00%
0.00%
5.50%
vaned, comprehensive study
vaned
1.00%
5.00%
0.00%
6.00%
3.00%
6.00%
11.50%
blank
2.00%
vaned (structure change)
vaned
2.50%
3.00%
5.00%
2.00%
Average:
Median:
4.12%
4.00%
2.76%
2.74%
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11
JOHN WARNER
VIRGINIA
225 RUSSELL SENATE OFFICE BUILDING
WASHINGTON, DC 20510-4601
12021 224-2023
http://warner.senate.gov
COMMITTEES:
ARMED SERVICES, CHAIRMAN
ENVIRONMENT AND PUBLIC WORKS
SELECT COMMITTEE ON INTELLIGENCE
HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS
CONSTITUENT SERVICE OFFICES:
tlnitrd ~tatrs ~rnatr
4900 WORLD TRADE CENTER
101 WEST MAIN STREET
NORFOLK, VA 23510-1690
(757) 441-3079
5309 COMMONWEALTH CENTRE
PARKWAY
MIDLOTHIAN, VA 231 12
IB04I 739-<)247
October 19, 2005
235 FEDERAL BUILDING
P.O. BOX 887
ABINGDON, VA 24212-{)887
(2761628-8158
1003 FIRST UNION BANK BUILDING
213 SOUTH JEFFERSON STREET
ROANOKE. VA 2401 1-1714
154(l) 857-2676
The Honorable Dennis Rooker
Chairman
Board of Supervisors
Albermarle County
401 McIntire Road
Charlottesville, Virginia 22902-4579
Dear Mr. Chairman:
Each day has its surprises. Amidst the swirl of issues in the Senate this morning, from
the war on terror to the proposed cuts in the Medicaid and Medicare programs, I discovered that
my friend of three decades, Forrest Marshall, has graciously proposed that my name be affixed to
the Meadowcreek Parkway project.
Just about every political figure is faced with such opportunities and must chart his or her
own course. To the south of Virginia, the long-serving former Senator from South Carolina,
Strom Thurmond, lived to see many roads, lakes, federal buildings, and other facilities named in
his honor. I have chosen to take a different path on the road, and have expressed my appreciation
for such tributes, but always declined less numerous gestures in Virginia.
Whenever I step down, and that is not imminent, my only desire is that my service in the
Senate be in the hearts of Virginians whom I am privileged to represent, and that my service be
remembered with openness, fairness, and honesty in casting votes which were in the best
interests of our nation, and our beloved Commonwealth.
Accordingly, I respectfully request that the Board's minutes reflect that while I had a hand
in arranging for the funds for the Meadowcreek Parkway, I desire not to have citizens place my
name on a signpost.
With kind regards, I am
Sincerely,
JW/al
~~~
Warner
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