Committee of the Whole
Tuesday, March 18, 2014
Salt Lake County Council
Committee of the Whole
~Minutes~
Tuesday, March 18, 2014
1:08:24 PM
Committee Members
Present: Randy Horiuchi
Richard Snelgrove
Arlyn Bradshaw
Aimee Newton
Sam Granato
Steven DeBry
Max Burdick
Michael Jensen, Chair
Excused: Jim Bradley
Compensation Review (1:08:24 PM)
Mr. Michael Ongkiko, Director, Human Resources Division, stated this presentation will be divided into two parts. This week the discussion will center on where the County is now from a compensation and benefit standpoint. Next week the discussion will center on the request-for proposal (RFP). He delivered a PowerPoint presentation relating to demographics on employee compensation and benefits. He reviewed objectives of the demographics report and employee demographics relating to category, age, and years of service. He also reviewed the benefits offered to County employees, i.e. insurance, employee leave, employee associations, retirement, and other miscellaneous benefits. Within the next three to five years, 20 to 25 percent of County employees will be eligible to retire. It will be important, from a succession planning standpoint, that plans be established to provide training programs so employees can be promoted internally.
Council Member Burdick asked if information could be presented on the number of employees providing municipal services versus other County services.
Mr. Ongkiko stated the Human Resources Division’s staff has not looked into that type of information, but it is something that could be researched.
Ms. Jill Carter, Director, Administrative Services Department, continued the PowerPoint presentation reviewing several areas where there are opportunities for improvement relating to compensation within the County. She stated there is uncertainty as to whether or not Salt Lake County salary ranges are competitive with the marketplace, due to the limited salary survey database, which the County uses. This makes it very hard to attract and retain a vibrant, competent workforce. Past compensation policies and practices created compression in the salary range and inequities between employee salaries. The average salary for County employees falls within the first 10 percent of the salary range, regardless of years of experience, which is creating the compression issues within the County.
Council Member Newton stated the benefit package offered to County employees seems very good. She asked if the entire benefit package was looked at when comparing salary ranges within the market place.
Ms. Carter stated the County markets a total compensation package, but most potential employees look at the salary, not the benefits offered. The County has a solid benefit package, but other large entities in the private sector offer a better package.
Council Member Bradshaw asked if the County recruitment was impacted when the County went with the Tier 2 retirement package.
Ms. Carter stated she was not sure if the Tier 2 retirement package discouraged people from applying or not.
Mr. Ongkiko reviewed data received from exit interviews. He stated the number one reason given by employees who recently left County employment was low compensation. The next reason was they wanted better job opportunities, and the third reason was they wanted better working conditions.
Council Member Burdick asked what the turnover rate was in the County.
Mr. Ongkiko stated the turnover rate is 9.71 percent.
Council Member Burdick asked what the acceptable rate of turnover is.
Mr. Ongkiko stated a turnover rate below double digits would be acceptable.
Ms. Carter stated she would be happy to do some research into this, but did not think the County’s turnover rate was alarming.
Council Member Snelgrove stated other opportunities for improvements relate to a better measurement of employee productivity and employee performance, so employees who are the most productive can be rewarded. He asked if this was taken into consideration.
Ms. Carter stated yes. However, a formal pay structure needs to be created first. How employees progress through the structure could be a function of whatever the County deems important, such as performance, seniority, skills, or education. The RFP Committee did talk about pay for performance.
Council Member Snelgrove stated when he looked at the benefits offered to County employees he wondered how private business could possibly compete. The employment environment is made up of 60 to 70 percent small businesses that could not compete with what the County offers.
Council Member Newton asked if a survey had been done questioning employees if they would rather have a reduced benefit package, but a higher salary, or vice versa.
Mr. Ongkiko stated one of the goals this year is to generate an employee survey. Exit interviews show that approximately 20 percent of employees leaving the County are going to work for other government entities.
Council Member Jensen stated an employee in the private sector does not get the same level of protection as an employee working in the public sector. He asked what that was worth.
Ms. Carter stated she would need to do some research into that area in order to answer that question.
Mr. David Delquadro, Chief Financial Manager, Council Office, stated it is also a function of the economy. When the recession hit, the protection was a huge benefit.
Ms. Carter stated the private sector took salary cuts as well to keep their jobs.
Council Member Jensen stated along those lines, he would like to see if those employees are at their previous pay rate or if they have exceeded that rate.
Mr. Sim Gill, District Attorney, stated conversations to restructure compensation is long overdue; the last model was put into place 25 years ago. Whatever decisions are made by the Council, in conjunction with the Mayor, will have a dramatic impact on individual responsibilities and the subspecialties. It is important to recognize what value County employees are getting in return. The end product should be objective, transparent, and most important predictable and rational. The compensation should be merit related, which is tied to productivity and efficiency. The Council has an opportunity to create a blueprint for the next 20 years. Employees have different classifications where some are more market driven; it would be unfair not to recognize them. If the County cannot compete with other entities or companies, then the County would become a training ground.
Mr. Reid Demman, County Surveyor, stated there are challenges when it comes to pay within the context of larger offices versus smaller offices. A person over payroll in his office will have more responsibilities than a person in a larger office where responsibilities are divided among several employees. Additional job responsibilities under a classification should be taken into consideration as well.
Mr. Kevin Jacobs, County Assessor, stated appraisers within his office work hard to obtain higher degrees of licenses, which allows for more job responsibilities, but no pay increase. There is no incentive to obtain the higher degrees. As long as the employee is productive, meeting goals, and doing more work, there should be a reward. He encouraged the Council to allow for some flexibility so high performers will have an incentive to stay.
Ms. Sherrie Swensen, County Clerk, stated many of the positions held in the Clerk’s office are held by women. She requested higher grades for employees numerous times; however, each time personnel insisted the positions are just clerical. Elections, Marriage and Passport, and Council Clerks have a vast amount of knowledge and computer skills in order to do their jobs. Positions at the Equestrian Center in which employees clean up after horses are a grade 19. Her employees start at a grade 16. Women are not working for extra money; they are working to support families. She requested that a demographic be done to see how many positions are held by non-professional women and how the pay equity compares. A newly hired employee makes $13.00 an hour, which equates to $27,000 a year. The food stamp qualification is $21,000 a year.
Council Member Horiuchi asked Michael Ongkiko, Director, Human Resource’s Division, to run a demographic as requested by Ms. Swensen.
Mr. Michael Ongkiko, Director, Human Resource’s Division, stated he would be glad to do so.
Mr. Wayne Cushing, County Treasurer, stated the Council needs to look at the entire compensation package to determine what is available to a new employee rather than what was available to an employee five or ten years ago. A good compensation package can be measured by the number of qualified applicants. Some benefits the County offers are not offered in the private sector, like sick leave. He suggested taking into consideration those uncommon benefits.
Mr. Gary Ott, County Recorder, stated technology is saving a lot of money. Employees need to be valued for the work they do.
Council Member Newton stated a system where it is hard to get rid of employees who are not doing a good job is a problem. On the other hand, not rewarding employees for doing a great job is also a problem. Providing a compensation package that pays for performance and rewards employees for doing an exemplary job is important as is reviewing poor performance employees.
Ms. Swensen stated the marriage and passport office is consistently busy and the job is demanding. She was told by Human Resources it is not the quantity of the work; however, it is hard to put employees in that type of environment and not compensate them appropriately.
Council Member Snelgrove stated he supports the philosophy of rewarding the most productive employees; however, incentivizing is hard to do in government. Low producing employees need to be reviewed to see if they can be put in a position that is more fitting and rewarding for them.
Council Member Jensen stated incentivizing employees means the civil service plan will change; employees do not want to give up job security. The Legislature and voters of Salt Lake County will not allow the County to be on the cutting edge of the market. He is willing to talk about incentives, but would like the Council to think about the ramifications.
Council Member Horiuchi stated incentives can be done in other ways, like a career path where employees can be promoted and receive a raise. The County needs a way to allow employees to progress into a more satisfying position.
Council Member Jensen stated a fair amount of ability to progress through the system already exists. Each manager has a way to reward employees through the incentive program, to give time off or cash rewards up to $1,000.
Council Member Bradshaw stated moving forward the Council needs to address more internal inequities that exist throughout the County. The Council also needs to determine what its compensation philosophy is, i.e. longevity, merit, or market based.
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Legislative Wrap-Up (2:46:50 PM)
S. B. 241 – County Jail Contracting Amendments (Sen. Scott Jenkins)
This bill:
13 . provides that a county may release a number of inmates from a county correctional
14 facility if the state does not appropriate funds as specified;
15 . delays the dates by which the Commission on Criminal and Juvenile Justice must
16 compile information from reporting counties and then report to the Division of
17 Finance; and
18 . delays by two weeks the statutory deadlines related to setting the final state daily
19 incarceration rate.This bill provides that a county may release a number of inmates from a county correctional facility if the state does not appropriate funds as specified; delays the dates by which the Commission on Criminal and Juvenile Justice must compile information from reporting counties and then report to the Division of Finance; and delays by two weeks the statutory deadlines related to setting the final state daily incarceration rate.
Mr. Brent Gardner, Executive Director, Utah Association of Counties (UAC), stated this legislation gives the County jail another $1 million for condition of probation (COP) state prisoners to the County jail. Now the County is only $3 million short of being fully funded for COP prisoners. This bill repeals the mandate for the County to take COP prisoners. The County now has the authority to manage the population and release prisoners up to the level of funding it is provided. He encouraged the Council to work out a plan with the Sheriff, Mayor, and judges.
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H.B. 404 – Court Security Fee Amendments (Rep. Paul Ray)
This bill:
13 . increases the amount of court security surcharge deposited into the state treasurer's
14 Court Security Account.This bill increases the amount of court security surcharge deposited into the state treasurer's Court Security Account.
Mr. Brent Gardner, Executive Director, Utah Association of Counties (UAC), stated this bill passed. It increases new funding for court security by $3.6 million. A $10 increase was added to the surcharge on fines to raise more funding for court security. That generated $3.6 million, 30 percent of which goes to Salt Lake County. That does not mean the State is overpaying for the security it is getting; the court is just getting closer to what it should be paying.
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H.B. 388 – Amendments to Transportation Funding (Rep. Johnny Anderson)
This bill:
13 . addresses the circumstances under which the state is required to impose a sales and
14 use tax to be distributed to public transit districts;
15 . authorizes a county or certain cities or towns to increase certain local option sales
16 and use tax rates for public transit;
17 . addresses the use of certain revenue collected from a local option sales and use tax
18 for public transit by a county of the first class;
19 . repeals obsolete language; and
20 . makes technical and conforming changes.This bill addresses the circumstances under which the state is required to impose a sales and use tax to be distributed to public transit districts; authorizes a county or certain cities or towns to increase certain local option sales and use tax rates for public transit; addresses the use of certain revenue collected from a local option sales and use tax for public transit by a county of the first class; repeals obsolete language; and makes technical and conforming changes.