HomeMy WebLinkAboutAgenda - Mail Packet - 10/17/2023 - Memorandum From Teresa Roche Re: Materials For October 16, 2023 Council Compensation Policy Committee Meeting
Human Resources Department
215 N. Mason, 2nd Floor
Fort Collins, CO 80522
970.221.6535
Date: October 12, 2023
To: Mayor and City Councilmembers
From: Teresa Roche, Human Resources
CC: Kelly DiMartino, City Manager
RE: Materials for October 16 Council Compensation Policy Committee Meeting
____________________________________________________________________________
I hope all are well.
Attached to this memo are the following:
• The agenda for the Monday, October 16, 2023, 3:30 p.m. to 4:30 p.m. virtual meeting of
the Council Compensation Policy Committee .
• The draft minutes from the August 21, 2023, Compensation Policy Committee meeting.
• Materials on Hourly Leave Benefits that aim to align the City with the Colorado FAMLI
program.
If you have any questions, please let me know.
TR
Human Resources
215 N. Mason Street
Fort Collins, CO 80522
970.221.6535
AGENDA
Compensation Policy Committee
October 16, 2023, 3:30 p.m. MDT
Zoom Meeting
+1 720 928 9299 Call In
Meeting ID: 924 6972 2781
https://fcgov.zoom.us/j/92469722781
This information is available in Spanish or other language at no cost
to a person who would like this information translated to or
communicated in Spanish or other language. Please call 416-4254
or email titlesix@fcgov.com to make a request for information in
other languages.
Esta información está disponible en español u otro idioma, sin
costo para la persona que le gustaría esta información traducida o
comunicada en español u otro idioma. Favor llame al 416-4254 o
envíe un correo electrónico a titlesix@fcgov.com para solicitar
información en otros idiomas.
Auxiliary aids and services are available for persons with
disabilities. TTY: Please use 711 to call 970.416.4254.
Committee Members:
Councilmember Susan Gutowsky, District 1
Councilmember Julie Pignataro, District 2, Chair
Councilmember Shirley Peel, District 4
City Staff Members:
Teresa Roche, Human Resources Executive
Carrie Daggett, City Attorney
Kelley Vodden, Director, Compensation, Benefits and Wellbeing
Gretchen Schiager, Executive Administrative Assistant
• Call Meeting to Order
• Approve Minutes from August 21, 2023
• Discussion Items:
o Hourly Leave Benefits
• Close out 2023
• Adjournment
Past Meeting Topics
• December 2021: Committee Identifies
2022 Schedule of Topics and Meeting
Cadence
• January 2022: Highlights from Child Care
Benefits Exploration Study
• February 2022: Discuss updated analysis
on Council Pay and Benefits
• March 2022: Review of the performance
management process for Council
appointed employees
• April 2022: Review updated Council pay
and benefits analysis
• May 2022: Cost of Living Analysis
• July 2022 Performance Management
Process
• August 2022: Performance Management
Process Continued
• October 2022: Final Plan for Annual
Evaluation and Market Analysis
• December 2022: Debrief Annual
Evaluation Process, Plan for 2023
• June 2023: Innovest Retirement Market
Analysis for Council Appointed Employee
Retirement
• August 2023: Review New Format for
Retirement Information and Annual
Performance Evaluation Process and
Timeline
2023 Meeting Topics
• Equitable compensation practices
• Hourly employee leave benefits
• Impact of Council pay increase on
interested candidates
Bike Rack Issues
• Council onboarding 2023
• High-performing cities selection process
Next Scheduled Meeting: TBD for 2024
There are three or more members of the City Council that will likely attend this meeting. Formal action may be taken by the
Committee at this meeting, and the discussion of public business will occur. Therefore, the meeting is open to the public.
Compensation Policy Committee
August 21, 2023, 3:30 – 4:30 p.m.
Meeting Minutes
Members in attendance: Councilmember Susan Gutowsky; Councilmember Julie Pignataro
Absent: Councilmember Shirley Peel
Staff in attendance: Kelly DiMartino, City Manager; Teresa Roche, Human Resources Executive; Jenny
Lopez-Filkins, Senior Assistant City Attorney; Rupa Venkatesh, Assistant City Manager; Kelley Vodden,
Director of Compensation, Benefits and Wellbeing; Rachel Barrett, Senior Analyst, Compensation;
Gretchen Schiager, Executive Administrative Assistant
The Compensation Policy Committee meeting was held on August 21, virtually through a Zoom webinar.
Agenda
• Call Meeting to Order
• Approve Minutes from June 20, 2023
• Discussion Items:
o Review New Format for Retirement Information
o Review Annual Performance Evaluation Process and Timeline
• Adjournment
Next Scheduled Meeting: October 16 Hourly Employee Leave Benefits
Councilmember Pignataro called the meeting to order at 3:41 p.m.
Councilmember Gutowsky motioned to approve the August 21 minutes. Teresa Roche seconded the
motion. The minutes were approved unanimously.
Ms. Roche introduced Rachel Barrett.
Review New Format for Retirement Information
Ms. Roche reviewed the updated format for the retirement market data. She asked whether having a
column for total contributions meets the Council’s needs. Councilmembers Gutowsky and Pignataro said
it did. Councilmember Pignataro will ask the other Councilmembers at tomorrow’s meeting if this
information is sufficient.
Ms. Roche noted that having this information is helpful for Colorado Cities, but because cities outside
Colorado typically have a defined benefit focus, there will not be a possibility of a total inputs column for
those markets.
Councilmember Gutowsky said it was a beautiful spreadsheet that allows employees and Council to
easily get all the information they need.
Review Annual Performance Evaluation Process and Timeline
Ms. Roche reviewed the timeline. She noted that the employees have been informed that their results
summary is due to Council on October 1. The employees will meet virtually with the consultants during
the week of November 13 to debrief the evaluation summaries prior to Council receiving the final report
the week of November 17.
Ms. Roche reminded the Councilmembers that last fall there was some discussion about inviting
external people to fill out the survey. Jill has external people who participated in the survey. Are there
external partners who should be included for Kelly in a fourth category, such as the PSD Superintendent
or President of CSU? Ms. Pignataro said she was content with continuing another year with the current
format, adding that perhaps the next Council will feel strongly about it. Ms. Gutowsky agreed.
Ms. Roche said she would send a memo to remind the Council about the timeline, noting that the
Committee’s recommendation was to keep the survey components the same for another year to solidify
the process.
Other Business
Ms. Pignataro asked about the agenda for the next meeting. Ms. Roche said she will bring forward a
discussion about hourly employee benefits in October. She stated that because of the Colorado Famli
Program, Kelly Vodden, and Amber Fluke (Benefits Manager) have worked toward enhancements to the
City’s hourly employee benefits and will provide a preview.
Ms. Gutowsky asked about other new laws and how the City compares to others. Ms. Lopez-Filkins said
we are on-par with other municipalities. Ms. Roche added that we had already worked to expand our
policy on harassment to do more than just meet the legal definition, but there is still more to do.
The meeting was adjourned at 4:01 p.m.
Headline Copy Goes Here
10/2023
Proposed Changes for Hourly Leaves
FAMLI & Non-Benefit Eligible Employees
Headline Copy Goes HereIntended Outcomes
Here is what we would like to accomplish today:
• Share our proposed recommendation for closing the gap with
FAMLI for our hourly employees.
• Respond to any questions or comments from the committee.
• Preview next steps.
Headline Copy Goes HereWhat is Family and Medical Leave Insurance (FAMLI)?
In general, Colorado State’s FAMLI insurance benefits provide eligible employees with the right to take a maximum of twelve weeks of paid family and medical leave, except four additional weeks are available for a serious health condition related to pregnancy or childbirth.
The leave may be used for the following purposes:
1. To care for own serious medical condition;
2. To care for a family member with a serious medical condition;
3. To care for a new child during the first year;
4. When an employee or their family member needs to take safe leave because they are a victim of domestic violence, stalking, or sexual assault or abuse; and
5. When an employee needs to take qualifying exigency leave because an employee's family member is on or being called to active-duty military service.
Headline Copy Goes HereThe City Opted Out of FAMLI
Participants in the FAMLI program must begin withholding and remitting employer and employee premiums to the FAMLI Division beginning in January 2023. Initial premiums have been set at 0.9% of wages per employee, with 0.45% paid by the employer and 0.45% paid by the employee. Beginning January 1, 2024, the FAMLI Division may increase the premiums paid by employers and employees to a maximum of 1.2% of wages per employee.
The City declined participation in the FAMLI program. The FAMLI program projected cost for the City portion of the premium were estimated to be $735,000 in 2023 and $774,000 in 2024, in addition to administrative costs of complying with FAMLI.
Most local government employers opted out of FAMLI. There is no requirement to meet, exceed, or provide an alternative to FAMLI as an ‘opted out’ local government.
The City could elect to participate in the program at a future date. FAMLI requires local governments to renew its decision to decline participation at least every eight years.
Headline Copy Goes HereFAMLI is still available to Employees
Although the City opted out of participating at the Employer level, Employees can still choose to opt-in directly with the State.
•To participate, employees can voluntarily opt-in by following the requirements of Section 8-13.3-514 of the Colorado Revised Statutes and FAMLI regulations, including filing a notice of election with the FAMLI Division. An employee that chooses to participate must do so for a minimum of three years.
•An ‘Opted Out’ Employer can choose to contribute the Employee’s share on their behalf without having to contribute the Employer’s share.
Employees become eligible to take paid leave after they have earned at least $2,500 in wages within the State, over a period of a year.
•The paid leave benefit is calculated based on the individual employee's income ranging from 37% to 90% of normal weekly wages, with a cap of $1,100 per week.
Qualifying employees are entitled to job protection during FAMLI leave, which ensures that upon return from leave, employees are entitled to the same position or an equivalent position with equivalent employment benefits, pay, and other terms and conditions of employment. During such leave, employers are required to maintain the employee’s health benefits, but the employee must continue to pay the employee’s portion of the health premiums.
Headline Copy Goes HereNon-Benefit Eligible Employee Considerations
Impacted population:
660 out of 826 hourly employees would have qualified for FAMLI based on trailing 12-month data
Options to Consider:
1.No Action – There is no requirement to meet, exceed, or provide an alternative to FAMLI as an
‘opted out’ local government.
2.Non-Benefit Eligible Employees: Benefits Team would educate and support an Employee enrolling in the
State-sponsored FAMLI program at no cost to the employee.
•0.45% cost will be funded by the Benefits fund for EEs who voluntarily enroll in FAMLI via State of CO.
•Benefits Team receives notification from State of EE participation.
•Benefits Team files quarterly hourly reports and funding to State and pays EE portion on their behalf
out of the Benefits Fund. This is only on behalf of voluntarily enrolled non-benefit-eligible EEs.
•Strategic Talent Planning
•Competitive advantage - all private sector businesses are required to opt-in or provide an alternative
private plan.
•No cost to the department when an employee is out on leave, provides flexibility to backfill if needed.
Headline Copy Goes Here
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Recommendation to support our non-benefit eligible Employees
While these employees would need to individually opt-in to the State’s FAMLI program; the City will cover the
contribution costs for employees who voluntarily elect to opt-in to the State program and will allow non-
benefit eligible employees the benefit of FAMLI at no cost to the Employee.
The state FAMLI program contribution costs for the City’s non-benefit-eligible population comes to an
estimated annual total of $43,637.02 for employees projected to earn over $2,5001 over a 12-month period.
1Projected annual earnings were estimated by extending each hourly employee's average hours and earnings per pay period over a 12-month period based on June 2023 hourly/temp census file. Average weekly
hours for the non-benefit eligible population came to an estimated 12.53 hours at a pay rate of $18.38 per hour. Average weekly hours for non-benefit eligible population that is projected to earn enough income to
become eligible under FAMLI ($2,500) is 15.36 at a pay rate of $18.39 per hour.
Headline Copy Goes Here
Questions?
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