HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 09/21/2004 - RESOLUTION 2004-116 ESTABLISHING DIRECTION FOR EMP ITEM NUMBER: 29
AGENDA ITEM SUMMARY DATE: September 21, 2004
FORT COLLINS CITY COUNCIL STAFF: Rick DeLaCastro
SUBJECT
Resolution 2004-116 Establishing Direction for Employee Compensation and Benefits.
RECOMMENDATION
Staff recommends adoption of this Resolution.
FINANCIAL IMPACT
The Resolution would minimize the financial impact to the City by increasing employee
contributions for medical premiums,and benchmarking pay against entities which have historically
set employee pay ranges lower than the City's current market average.
EXECUTIVE SUMMARY
During the 2004-2005 budget process, Councilmembers expressed concern about the level of
employee benefit premiums, and the practice of benchmarking to provide market comparisons for
the City's compensation and benefits programs.
Council adopted Resolution 2003-147, establishing an Ad Hoc Compensation and Benefits
Committee, comprised of Councilmembers Eric Hamrick and Kurt Kastein. This Committee
worked with City staff to solicit services of a professional consulting firm with expertise in the
analysis and design of employee compensation and benefits. After requesting competitive proposals
from qualified firms, the City selected the consulting firm of Gallagher Benefit Services, Inc. to
conduct such an analysis.
The Gallagher Report provided an analysis of the City's current compensation and benefits
programs. In addition,the Gallagher Report listed several options that the City could pursue in order
to reduce the rate of cost increases in the medical and dental plans. The Gallagher Report was the
subject of two Council study sessions held on August 11 and 24, 2004.
RESOLUTION 2004- 116
OF THE COUNCIL OF THE CITY OF FORT COLLINS
ESTABLISHING DIRECTION FOR EMPLOYEE
COMPENSATION AND BENEFITS
WHEREAS , Council directed staff to solicit the services of a professional consulting firm
with expertise in the analysis and design of employee compensation and benefits ; and
WHEREAS , after requesting competitive proposals from qualified firms, the City selected
the consulting firm of Gallagher Benefit Services, Inc. (" Gallagher") ; and
WHEREAS , Gallagher completed its analysis and made a final report to the Council and
staff (the " Gallagher Report") ; and
WHEREAS, the Council wishes to establish certain policies relating to employee
compensation and benefits that are consistent with the Gallagher Report.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows :
Section 1 . The City Manager will review the feasibility of the Cost Savings Options
from the Gallagher Report and report back to City Council by the end of the first quarter of 2005 .
Section 2 . The City will adopt a practice of comparing its compensation and benefit
programs to other benchmark organizations as recommended in the 2004 Gallagher Report. These
include : City/County of Broomfield, Boulder County, Jefferson County, Larimer County, and Weld
County.
Section 3 . The employee premiums for dependent coverage in the City-sponsored
medical plans will be increased incrementally, such that employees will pay 20% of the total
premium beginning January 1 , 2006, and 25 % of the total premium on January 1 , 2007 .
Passed and adopted at a regular meeting of the City Council held this 21 st day of September,
2004,
Mayor
ATTEST :
City Clerk