HomeMy WebLinkAboutPersonnel Board - Minutes - 08/31/2004PERSONNEL BOARD MINUTES
August 31, 2004
12:00 P.M.
215 North Mason
Conference Room 2-D
Council Liaison: Ray Martinez, Mayor
Staff Liaison: Rick DeLaCastro, Human Resources Director
Board Chair: Valerie Remington
Board Members Present: James Alderden, James Lyall, Valerie Remington, Peter
Shostak, Sidney Simonson
City Staff Present: Darin Atteberry, Interim City Manager
Wendy Williams, Interim Administrative Services Director
Rick DeLaCastro, Human Resources Director
Joan Busch, Admin Support Supervisor (Recorder)
Call to Order
Chair Valerie Remington called the meeting to order at 12:05 p.m.
Review of Gallagher Report
Rick DeLaCastro advised the Board that Darin Atteberry, Interim City Manager called
this special meeting of the Board to get the Board's comments on Gallagher Benefit
Services' findings. The Personnel Board is the only board that advises the city manager
rather than city council.
Rick explained that Gallagher was the consultant selected to review employee
compensation to determine if the market data was appropriate and that the City was
comparing to the appropriate entities. They also were asked to review employees'
share of benefits costs and what can the City do for cost containment and to slow rising
costs.
A summary of the findings included:
• The combined benefits and compensation package is comprehensive and at or
above the 70`h percentile of the City's peer group of cities
• The peer group is largely appropriate. It is recommended that the City continue
to use the peer group, but include other larger public employers in the Front
Range, including counties
• Compensation practices are consistent with the market and with City policy
• Medical benefits are very similar to many cities within the peer group
• Medical benefits premiums are slightly more expensive for employee -only
coverage, and less expensive for dependent coverage
• Dental benefits are slightly below average relative to plan design.
• Cost containment ideas included increased employee contributions for medical
premiums and a solid wellness program
Peter Shostak asked what was the cost of the consultant's report. Rick said it was
approximately $40,000. Peter then asked if any of the findings were a surprise and Rick
Personnel Board Minutes
August 31, 2004
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responded no. Peter commented that it seemed a waste of funds when that money
could have been spent on the medical situation.
Darin Atteberry commented that the positive value of the report was giving City Council
an opportunity to learn more about the complexity of benefits and compensation. City
Council will be formally addressing the findings of the Gallagher report at an upcoming
council meeting. Darin said that he would be sharing with employees the future of
benefits changes at the next Issues and Answers session.
The Board discussed their support of the 70`" percentile and was concerned that a
substantial increase in employees' contribution in healthcare premiums combined with
the salary freeze could impact the hiring and retention of employees.
Peter Shostak moved that the Personnel Board re -affirm to the City Manager, and
through the City Manager to City Council, its previous stated position of a phased
approach to incremental increases to employees' contribution to health care benefits.
The Board supports the proposal to increase the employees' portion of the health care
premium to 15% in 2005. James Alderden seconded. Motion passed unanimously (5-
0). Valerie Remington suggested using e-mail to create a memo of support based on
Peter's motion. Joan Busch will work with Valerie to draft such a memo to be included
in City Council packets.
III. H.R. Metric
Darin Atteberry explained the proposed H.R. Metric as a tool used to determine total
people cost as a percentage of the total operating budget. Darin explained the basis of
the Metric is the concern that in the future employee costs could be a majority of the
operating budget. This tool would take a broader level approach at total compensation
and budgeting.
IV. Pending Employee Issues
Rick DeLaCastro advised that there are two employee issues that could lead to
termination.
V. Other Business
Wynette Cerciello, Assistant Human Resources Director is leaving the City for the
Human Resources Director position at Larimer County. Peter Shostak moved that the
Board formally express its appreciation to the Assistant Human Resources Director for
her three and one half years of service and to extend to her best wishes for her new
position as Larimer County's Human Resources Director. "You have served us well."
Sidney Simonson seconded. Motion passed unanimously (5-0). Joan Busch will draft a
memo to Wynette expressing the Board's appreciation as expressed in the motion.
VI. Adjourn
There being no further business, the meeting adjourned a 1:25 p.m
Approved:Ccv n
Valerie Remington, Ch it