Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
11-557
DECEMBER 13, 2011 11-557 RESOLUTION (CARRIED___5-2_____LOST________LAID OVER________WITHDRAWN________) AS AMENDED PURPOSE: APPROVE JOB CLASSIFICATION AND COMPENSATION STUDY INITIATED BY: CITY ADMINISTRATION BE IT FURTHER RESOLVED that the Classification and Compensation Study, completed by Carlson Consulting LLC dated December 2, 2011, (on file in the City Clerk’s Office or available online at www.ci.oshkosh.wi.us) is approved hereby received and filed. and the proper city officials are authorized and directed to implement the study recommendations. Bold & Italics indicates Amendments CITY HALL 215 Church Avenue P.O.Box 1130 Oshkosh, 00 54903-1130 City of Oshkosh O.IHKOIH Memorandum, Date: December 8, 2011 To: Mark Rohloff, City Manager From: John Fitzpatrick, Assistant City Manager/ Director of Administrative Services Re: Classification and Compensation Study I am pleased to report that we have finished the classification and compensation study that we have been working on with Charlie Carlson of Carlson Consulting. As you know this project has been an effort to comprehensively review the classifications of all regular City employees and the corresponding compensation that they receive. As we have discussed, this is an important project in order to insure that we are classifying and compensating employees correctly, because of the recent changes that preclude us from establishing 2012 pay structures in a collective bargaining context for many represented employees, and in consideration of the current as well as future economic conditions. If at all possible, it would be very much appreciated if the approval of the study could be placed on the 12/13/11 agenda in such a manner where a brief presentation could be provided to the Council by Mr. Carlson prior to their deliberations on this subject. Please ask the Council Members to bring copies of the study to the meeting or let me know if they need another copy prior to the meeting. Please also let me know if you or any of the Council Members have any questions and thank you for your support and assistance throughout this process. cc: Charlie Carlson, Carlson Consulting, LLC 0 .................... ... ............._..... CITY OF OSHKOSH, WI JOB CLASSIFICATION AND COMPENSATION STUDY FINAL REPORT December 2, 2011 CARLSON CONSULTING LLC Middleton, WI XV181 <1L We have completed a comprehensive review of the work performed by City staff and prepared a number of recommendations for the City to consider. It is our belief that City revenues will continue to be strained severely. The American economy is not healthy. At most, we can hope for flat municipal revenues, and we know that if the City does not hold expenses constant, then services will have to be cut. The 2012 budget was balanced because of changes in employer pension and insurance plan modifications. Similar savings are unlikely to be available in 2013. 1. Current salary levels for managers and professionals are competitive. However, the City should implement a new salary schedule which features variable pay for performance beyond the pay range "control point," the level targeted at the "market estimate." The City wants and needs to move to a performance based management environment. 2. After research and development in 2012, implement a consistent, measurement - based performance management system for managers and professional staff in 2013. When successfully established for this group, future expansion to other employee groups is recommended. This performance system could include pay for performance options should consistent funding allow. 3. Current hourly rate pay levels for FLSA non - exempt employees tend to be substantially above area market rates. With the exception of police, fire, and transit employees, we are recommending all full -time hourly staff be classified into five pay grades targeted at area market rates with any employee currently paid above the grade rate maximum "red- circled." 4. Eliminate the longevity pay system. 5. Implement a retirement planning incentive program for 2012 to manage staff turnover and create payroll savings. 6. Continue to increase the proportion of health insurance contribution paid by employees over time until attaining an 80/20 city /employee split. The recommended method is to share future premium increases 50/50 until the 80/20 split is reached. This will make the City more competitive with the area labor market. 7. Implement federal Fair Labor Standards Act overtime provisions for all City staff with limited exceptions and study the effects and costs in 2012 for possible changes in 2013 if necessary. 8. Review the current paid time off programs for a possible conversion to a paid - time -off (PTO) system in 2013. Fully implemented, we believe this will save the City over $1 million annually in payroll plus social security and pension costs and will help offset reduced revenues and increasing expenditures. The intent is to preserve city services and minimize the impact on current employees as much as possible. INTRODUCTION The City of Oshkosh retained Carlson Consulting LLC to conduct a comprehensive study of its job classification and compensation system. Our firm has assisted the City with by developing the current system eleven years ago for its "non- represented" employees (department managers, supervisors, professional and confidential staff). The City was prepared to update this plan when the Wisconsin Legislature substantially altered the collective bargaining laws affecting the remaining City employees when their contracts expire at the end of this year. As a result, the City is now precluded by law from negotiating pay structures or fringe benefits with many of its unionized employees. New negotiations with protective service and transit employees are covered by different modifications of the labor law. Health insurance bargaining and compensation comparisons in the dispute resolution process have been altered to focus more on local economic conditions for some or all of these employee groups. In summary, the regulations and relationships have changed substantially, so the City needs new information for its decision- making, and in the case of many unionized jobs, the City is obligated to establish pay structures. The scope of work for this project has been as follows: 1. Review and analyze relevant organizational values and concerns. Determine current organizational needs in regard to a classification and compensation system. 2. Conduct project orientation sessions for all staff to explain the scope of the project, our methods, and each employee's role. 3. Assist the City in developing a total compensation measurement method that will support the strategic management of its pay plans. 4. Document position responsibilities for all represented positions using the same job documentation /analysis tools implemented for management and supervisory staff. 5. Apply the Point Factor Job Evaluation system to all positions to balance internal relationships with market factors. 6. Determine desired total compensation policy; i.e., the appropriate relationship between pay and benefits, the appropriate market(s), and the City's intended target for pay practices in relation to the market. 7. Conduct marketplace research to determine appropriate competitive compensation (base pay) relationships so the City can successfully recruit /retain highly qualified employees. 8. Comment on the quality and cost of the benefit program and recommend modifications that are warranted by the City's total compensation philosophy. 9. Design pay range options that are consistent with the City's pay policy and reflect appropriate pay practices for public sector employees at these levels. 10. Recommend allocations of each position to an appropriate pay grade based on appropriate internal equity and marketplace considerations. (To the extent that wages are bargained collectively, these are intended to guide future negotiations.) 11. Discuss with City leadership the issue of pay progression with appropriate consideration for both length of service and performance. Make recommendations based on the identified pay philosophy, feasibility and affordability. 12. Review supporting pay administration policies in the employee handbook. 13. Review the current process for internal maintenance of the classification and compensation system, making recommendations as appropriate. 14. Conduct classification appeals following adoption of a new plan by Client. Appeals must be submitted within 30 days of plan adoption. 15. Develop follow -up project proposals for the design and implementation of a pay - for- performance system and an employee engagement survey method. The following is our report on findings and recommendations related to this scope of work, I. Review and analyze relevant organizational values and concerns. Determine current organizational needs in regards to a classification and compensation system. The City of Oshkosh Strategic Plan (August 10, 2010) includes three items that are immediately relevant to this project. One, it acknowledges that resources will continue to be constrained. Two, it calls upon departments to establish performance measures that document the efficiency and effectiveness of City services. And, three, it promises openness and communication. Public organizations conduct comprehensive compensation studies like this one perhaps once in a generation. This study is particularly unique because it comes immediately after revolutionary changes in Wisconsin laws covering municipal financial aids and employee collective bargaining. These changes are inter - related — the Wisconsin Legislature reduced its financial assistance to cities to help erase a multi- billion dollar state budget deficit and sharply curtailed employee bargaining rights to give public employers the control to lower their employee payroll costs correspondingly. Additionally, it constrained the ability of municipalities to raise revenue through property taxation. The City Council adopted the recommendations of our 2001 study of compensation for managers and professional staff, and the administration has referenced that report in its compensation management practices over the intervening ten years. Included in that report was a recommended statement of compensation policy that read as follows: COMPENSATION PHILOSOPHY The City of Oshkosh considers employees our Number One asset. As such, the City recognizes the importance of the compensation program to developing this asset. The salary and benefits program provided to the employees of the City is intended to attract, retain, and motivate highly qualified, enthusiastic, productive, and committed employees. The program is designed to assist the City in providing high quality services to its clients —the City's Number One objective. This objective is attained by providing compensation based on internal equity and external competitiveness within its fiscal capabilities and in full compliance with all State and Federal laws and regulations governing pay. The Citys compensation philosophy supports our desire to provide salary advancement opportunities that recognize continued contribution through tenure and additional experience, changes in the economy, and changes in the City's financial conditions We think this continues to bean appropriate policy. In this context, our over- riding objective in this project was to help the City enhance its services by moving it toward a performance -based employment culture and preserve service levels by increasing productivity and controlling cost. City services are employee -based and are only as good as the quality of the workforce. The challenge will be to control expenses and increase productivity. At best, we believe we can expect to only stay even on revenues for the foreseeable future. To fund our public infrastructure needs, the foundation for future growth and success, we have to lower our operating expenses. When we talk with clients about strategic planning, my first question almost always is, "What is your business plan if you have a 20% drop in revenue ?" And, second, "if your revenues at least stay even, how are you going to pay for the capital improvements you know you will need ?" The City of Oshkosh was able to balance its 2012 budget and hold the line on taxes primarily because the legislature required most employees to pay their statutory contribution share to the retirement system and by modifying the employee health insurance program. Specifically, regarding the retirement system, the City of Oshkosh, like almost every public employer in Wisconsin, had been shouldering the entire cost of the pension program. Now, most employees pay half of the contributions necessary to fund their retirement. In the area of employee health insurance, the City redesigned its plan by closing out an inefficient plan option, increased deductibles and out of pocket provisions, and required a higher percentage of employee contribution. These changes limited the City's increased insurance expenses this year, but costs will continue to rise. This balanced budget is predicated on the City settling its collective bargaining agreements with the police, fire and transit worker unions along similar lines. This report does not speak publicly to strategies that we have discussed with the City for use in its bargaining with the police, fire, and transit unions for obvious reasons. Labor 4 negotiations are tough enough, and fishbowl bargaining doesn't work. However, if they don't agree to contribute to their pension and insurance programs, or the parties cannot find equivalent cost savings in other areas, then the City budget will not be in balance and future cuts will be required. We adhere to a list of guiding principles in developing compensation plans for our clients. Specifically, we strive to develop plans that are: 1. Aligned with strategic objectives 2. Create internal equity 3. Are competitive 4. Consider total compensation design 5. Support performance management 6. Affordable 7. Legal 8. Can be explained 9. Efficient and can be administered consistently A tenth standard is that any pay plan should be audited on a regular basis to make certain that the standards stated above are upheld. With this overview, we have developed a compensation strategy for the City to the follow as well as specific pay plans and policies that focus on total compensation, create the ability to attract, retain, and motivate a qualified workforce, and control cost. We believe the recommendations that follow will help the City to achieve its strategic objectives. II. Conduct project orientation sessions for all staff to explain the scope of the project, our methods, and each employee's role. The City of Oshkosh has a wonderful resource in its video production system, and we utilized it efficiently in this study. Usually, clients don't have this resource, so we have to rely upon orientation sessions to explain the study and what we are asking employees to do to help make it successful. For example, we recently conducted eleven one -hour orientation sessions just for supervisors and managers at a client location to instruct them on how to communicate about the project to their employees. This was significant time and expense for the client, particularly for all of the time commitment, and was not the most effective way to communicate with their employees. However, the work time to conduct these sessions for everyone would have been extremely expensive. At the City of Oshkosh, we used the video studio for an interview panel consisting of a moderator, the City Manager, the Assistant City Manager, and myself to review the steps in the project. Notice of the briefing session was provided to all City staff so they could view the discussion at computer workstations and participate via email. The moderator interviewed the three of us and presented questions emailed by employees as the discussion unfolded. 5 The City taped this session so employees could log in later to view it on the City's Intranet if their work schedule did not allow for real -time participation, created DVD copies of the presentation that they could check out to share with their family members, and created a Frequently Asked Question posting for the intranet to share additional questions that came up after the presentation. This was a very effective approach. We found that we had many more pointed, detailed questions using the remote video presentation technique than we receive when we do this in face -to -face orientations. As discussants, we did not know who submitted which question, so we think employees felt less constrained. In addition, they could gather around workstations and openly talk about what they were seeing and hearing and collaborate on questions as the presentation took place. The City Manager and Assistant City Manager have used this media method before to explain some of the changes that impacted the organization as a result of Wisconsin Acts 10 & 32 and subsequently to review changes to the employee handbook. We expect to join them for a future staff briefing on the contents of this report after the City Council has had a chance to review it. III. Document position responsibilities for all represented positions using the same job documentation /analysis tools implemented for the management and supervisory staff. The foundation for any effective human resource program is accurate job documentation. It is the basis for all employment actions: recruitment, job classification and compensation, performance management, position control, etc. The City first used our Job Description Questionnaire (JDQ) for the management and professional pay plan development over ten years ago. After our project orientation sessions, every City employee either completed a unique JDQ or collaborated with others performing the same duties on a single JDQ. Supervisors and departments reviewed the employee responses. Sometimes a client will ask, "If compensation is based in large part on JDQ responses, won't employees have a tendency to over emphasize their responsibility statements?" Having evaluated literally thousands of JDQ's, we can say unequivocally that this does not happen frequently. Instead, the biggest source of error in JDQ preparation is an employee not listing an important responsibility simply because she or he is so familiar with the job that it slips her or his mind. That's why we have supervisors and managers review the content for accuracy and completeness. Supervisors are instructed at the outset to never tell an employee what to list on the JDQ; instead, there is a separate place for supervisory comments. We recommend the City consider using JDQ's as the source of all job documentation for several reasons. First, the JDQ provides much more information in a useful format 2 than a standard job description. Second, the JDQ asks employees and supervisors to identify how performance of essential duties can be measured so the JDQ can be transformed into a performance management instrument. And third, we will continue to use the JDQ as the basis for compensation management. There are three circumstances when JDQ's should be reviewed. First, the supervisor, or department head, and the employee should review his or her JDQ prior to any performance review to make certain the JDQ is current. We want performance reviews focused on the detail of the job. Second, whenever a position is open due to resignation, retirement, promotion, transfer, etc., the JDQ of that position and any other affected positions should be reviewed. We recommend this because vacancies can change jobs and the organizational structure, having an impact on more than one job. This is particularly true during a period of position consolidation or retrenchment that may occur as the City looks very closely at its future organizational structure during this current period of fiscal restraint. Third, when an employee or a department requests a position classification review, we required an updated JDQ outlining what has changed in the job to warrant a review. We also ask for JDQ's for any other jobs affected by the new circumstances. The classification review forms provided to the City reflect the approach described above. For the most part, employees did a good job on their Job Description Questionnaires, and in those instances where employees put in more minimal efforts on their JDQ's, departments supplemented the content with more detailed information. All in ail, the City has established a solid foundation of job documentation to support all of the related activities of human resources. IV. Apply the Point Factor Job Evaluation system to all positions to balance internal relationships with market factors. As with the Job Description Questionnaire, the City began using our Point Factor Job Evaluation System for the management and professional pay plan development over ten years ago. In addition to re- documenting and evaluating all of the management and professional positions, we now have documented, analyzed and evaluated the job content of every City position using the Point Factor Job Evaluation System. Our point factor job evaluation system defines five key, job - related factors that are objectively measured by us as expert evaluators. We have used this system to evaluate thousands of jobs in both the public and private sectors, and it is a very reliable and valid tool for effective classification and base pay administration. Each evaluation factor includes definitions of various levels that can be applied to job content to determine what the appropriate "score" on that factor is. The evaluation factors and the defined levels for each factor correspond to sections of the JDQ, so the 7 evaluation is verifiable in the sense that one could actually observe work being performed that corresponds to the written description. In other words, the abstraction has meaning in the real world of work. It reflects systematic measurement of the job rather than the performance of an individual doing the job. When the evaluation is finished, the point scores on each factor are totaled to obtain the overall point value for the job. Having a point score allows us to compare and contrast jobs that are frequently quite dissimilar in order to establish a job hierarchy and classification system. In summary, the purpose of our position or job evaluation methodology is to: 1. Provide a common system with the degree of difficulty of every job in the City evaluated against the same set of criteria, Determine the relative worth of every job in the City in accordance with the degree of difficulty associated with each job (i.e., to establish internal equity in the City's pay structure), Assign individual positions to classifications based on similarity of duties and responsibilities as well as educational and experience requirements, 4. Provide an objective basis for establishing grade levels for each job in the City, 5. Provide the independent variable necessary to integrate with wage and salary survey data for the purpose of developing a pay structure for the City that possesses both internal equity (job evaluation) and external equity (wage and salary survey data), We have provided a summary of the job evaluation system and the individual factors to the administration. The validity of the rating system is achieved through use of the proper job evaluation factors as well as the consistent application of the system, based on using evaluators with thorough training and professional experience in the concepts of internal equity and position classification. There is also a requirement of sufficiently current and complete job documentation and relevant background information. We evaluated each job based on our understanding of position responsibilities obtained from the JDQ's. Employees were instructed during the orientation process about the importance of being accurate and thorough on the JDQ. The accuracy of the resulting job evaluation is based upon the quality and accuracy of these multiple sources of job analysis. The Job Evaluation System was applied to the data we gathered. We determined the number of recommended pay grades by placing jobs with similar total point scores into pay grades because jobs of similar value should have the same pay opportunities. Because there are five factors of job worth measured, jobs can end up in the same grade even with great differences in point scores among some of the factors. H In an internally equitable pay plan, the more difficult or complex the job is, the higher the level of responsibility involved, and the extent to which other factors that influence compensation exist, we should expect higher pay levels. In general, then, salaries should rise with job evaluation scores. in the section below on pay plan design, we have recommended how job evaluation results and market data would come together to create pay structures for the City of Oshkosh. In the future, we recognize that job responsibilities change as the organization changes. We have recommended a set of policies for the management of this system going forward. V. Market Measurement The three areas where public pay management is changing radically are: (1) labor market analysis; (2) benefit cost control; and (3) pay for performance. In this study, the City of Oshkosh is on the leading edge of all three. The new economy requires it, and Wisconsin Acts 10 and 32 enabled it. Essentially, in these three areas, the State of Wisconsin returned public employers to circumstances quite similar to the early 1970's when we had free collective bargaining and governments established all pay classifications and ranges based on market research or local conditions, managed merit -based pay programs, and established all benefit levels. Subsequent labor laws, including interest arbitration, altered the landscape, and for municipalities, wage determination for unionized employees was handed to interest arbitrators who were obligated to base their decisions on public employee comparisons and almost always exclude local economic conditions from their consideration. This resulted in major disparities between public and private sector compensation. The pay and benefits of general hourly -based union workers in the public sector has become substantially higher than their local private sector counterparts. At best, faced with these circumstances, we have struggled to keep supervisory and management compensation competitive. Now, the law has changed. For general employees, municipalities are precluded from bargaining wage structures and are limited to negotiating the size of a general increase within limits. Protective service and transit employee bargaining continues to be governed by interest arbitration but more weight is to be given by law to local conditions and municipalities have the option of establishing different health insurance plan designs for protective service employees to balance negotiated settlements on other economic issues if they so choose. In this context, we developed a market measurement strategy with the City administration and City Council that is based on the actual markets where the City is recruiting, as well as comparable pay policies by employee group. The market research strategy we followed focuses on employee groups as follows: 0 • General city employees and transit staff are measured against area labor markets that include both public and private sector workers. • Managers, professional staff, and protective service employees are measured against similar public sector employers. The primary sources for area labor market data were the U.S. Department of Labor Bureau of Labor Statistics (BLS) May 2010 Metropolitan and Nonmetropolitan Area Occupational Employment and Wage Estimates -- Oshkosh - Neenah, WI, the Towers Watson survey database for the Fox Valley area, and the Fox Valley Chambers of Commerce Survey. Overall, we believe the BLS data is the most comprehensive, reliable dataset available for expert wage determination of positions at these levels. Our primary source for public employment data was a custom survey that we conducted for the City. The municipalities included in this sample with relevant demographic information for population, median household income, and equalized value per capita are as follows: Note: Population and income data source is U.S. Census Quick €acts report and equalized value data is from the State of Wisconsin Department of Revenue. Management /Professional Group We used twenty -six benchmark positions to market test the pay plan group that we have titled the "Management /Professional" group. This is the group currently referred to as "non- represented." It includes 87 job classifications covering 102 employees. The benchmark group and survey results are as follows: 10 Population Income EQ/Cap Green Bay 104,057 $42,899 $56,802 Kenosha 99,218 $48,010 $60,585 Racine 78,860 $40,733 $48,301 Appleton 72,623 $51,723 $66,055 Eau Claire 65,883 $38,859 $64,470 Janesville 63,575 $49,297 $61,986 La Crosse 51,320 $36,207 $60,077 Fond du Lac 43,021 $45,061 $61,440 Beloit 39,966 $36,863 $39,001 Wausau 39,106 $41,169 $67,822 Average 65,763 $43,082 $58,654 Oshkosh 66,083 $42,328 $57,142 Note: Population and income data source is U.S. Census Quick €acts report and equalized value data is from the State of Wisconsin Department of Revenue. Management /Professional Group We used twenty -six benchmark positions to market test the pay plan group that we have titled the "Management /Professional" group. This is the group currently referred to as "non- represented." It includes 87 job classifications covering 102 employees. The benchmark group and survey results are as follows: 10 Job Title Plan CMidpt Public C /Ratio PROPERTY APPRAISER 11 M/P 24.79 26.37 94% LIBRARIAN 24.29 26.39 92% PAYROLL COORDINATOR M/P 24.84 25.41 98% ARCHIVIST M/P 22.40 26.82 84% PRINCIPAL PLANNER M/P 34.74 28.91 120% MANAGING LIBRARIAN 29.38 28.56 103% ACCOUNTING SUPERV M/P 30.77 30.62 100% WTR FILT PNT SUPT M/P 32.57 34.88 93% WW TREAT PLNT SUPT M/P 32.57 35.74 91% CITY CLERK M/P 36.70 33.60 109% ASST FINANCE DIR M/P 40.67 39.09 104% CIVIL ENGINEER Il M/P 36.70 33.38 110% CHIEF BUILDING OFFIC M/P 38.69 33.78 115% CITY ASSESSOR M/P 38.69 39.88 97% DIRECTOR OF IT M/P 38.69 40.56 95% ASST CITY ATTORNEY M/P 42.66 36.22 118% POLICE CAPTAIN M/P 39.99 39.11 102% STREET SUPERINTENDENT M/P 38.13 39.17 97% ASST DIR PUB WKS M/P 44.63 45.10 99% DIRECTOR OF PARKS M/P 44.63 40.93 109% DIR COMMUNITY DEVEL M/P 50.58 45.78 110% LIBRARY DIRECTOR 46.41 41.89 111% FIRE CHIEF M/P 45.54 49.21 93 %a POLICE CHIEF M/P 45.54 51.49 88% DIRECTOR OF FINANCE M/P 50.58 50.89 99% CITY ATTORNEY M/P 52.54 48.78 108% DIR OF PUBLIC WORKS M/P 54.53 53.38 102% Avg. C /Ratio 102% The first column after the benchmark job title (Plan) is the pay plan the job title is placed in. The second column (CMidpt) is the midpoint pay rate of that position's current pay grade. The third column (Public) is the public sector survey average rate. The fourth column (C /Ratio) is the current pay grade midpoint as the percentage of the market estimate from the survey for that job. As can be seen from the table, on average, this group of benchmark jobs is "spot on" the measured market. The current City pay plan used the range midpoints as the "control point" for its pay plan; e.g., the target point that we relate to the market estimates. Graphically, the results from this portion of the market study can be graphed as shown in the table on the following page. Each data point on the graph represents a benchmark job and the midpoint and market estimate for that job. As expected there is variance around the line, and, typically, the range of pay for each position covers most the variance when the pay plan is structured around it. 11 CITY OF OSHKOSH MMAGEMFNT /PROFESSIONAL ANALYMS The graph clearly shows the almost coincidence between the trend line through current midpoints and the market estimates for the benchmark positions. The equation of the trend line for the market data is: Y (predicted rate) = ($.0445 times job evaluation score) _ $2.1154 with a correlation coefficient of 0.90869, which can be interpreted as 98% of the variance in pay explained by the job evaluation result. The implication of this is that we can use the market line equation confidently in updating the pay plan for this leadership group. Why didn't we use private sector data, too? Essentially, there are two major reasons. First, not all of the management jobs have private sector counterparts (Public Works Director, Police Chief, Fire Chief); these are public sector management jobs responsible for public services, and that is a unique market. Second, private sector employees at the management, and often at the professional level, are covered by performance -based pay plans, often with bonus eligibility for higher individual or organizational performance. Consequently, it is pushing the comparison if we use private sector data. However, as the public sector gradually embraces and perfects a pay - for - performance model, we will need to make these comparisons more frequently. 12 Copyrighted Carlson Consulting LLC November 2411 General Employee Group This group does not have the history of job evaluation that supports the management /professional pay group. These are jobs currently represented by the Wisconsin Council 40, AFSCME, AFL -CIO in 108 job classifications over some 220 employees assigned to dozens of pay grades. Many of the pay grades have minimal pay differential between them, and both the City administration and the local union representatives have acknowledged for years that the current pay grade structure is likely to contain internal inequities. As described above, for this group of employees, we used three primary survey sources: BLS, Towers Watson, and Fox Valley Chamber Survey. We made benchmark comparisons for 18 benchmark job classifications. The results of this market test are presented in the table on the following page. We compared the market estimates to the pay range maximum rates for the general employee group because the ranges are narrower, as they should be for these types of occupations. Typically, pay plans at this level regard the pay grade maximum as the "going" or "job" rate, and the steps leading to the maximum rate as the learning steps through which employees progress over a period of four to five years. Oshkosh Oshkosh Area /Mkt Job Title Max. Public Est. ELECTRICIAN 1 25.41 30.57 25.11 ADM1N ASST 25.72 22.36 22.77 MECHANIC III-CENTRAL GARAGE 24.25 23.10 21.44 CIVIL ENGINEER TECHN 27.83 25.59 22.23 PC HARDWARE TECH 24.35 23.18 21.27 ACCT CLERK 11 FINAN 19.30 18.73 15.40 BUILD MAINT CUST 11 21.12 18.06 17.73 EQUIP OP 11 21.78 21.44 22.04 MAINTENANCE WELDER 23.79 23.05 17.83 WATER MAINTENANCE WORKER II 22.51 22.19 19.16 BUILD MAINT CUST 20.21 19.65 13.34 SEC I 16.47 20.35 16.59 GROUNDSKEEPER 21.78 20.95 13.40 ACCT CLERK 1 17.29 17.89 14.16 CLERK TYPIST 1 15.59 1751 13.27 SECRETARY I /CLERKS 16.14 16.18 15.28 SANITATION OPERATOR 21.78 21.69 16.19 CASHIER 18.87 H 15.39 What the survey results show overall is that the City of Oshkosh is paying its employees competitively relative to the public sector and higher than the area market. We expected the City to be competitive with the public sector comparison group because Wisconsin labor law historically has required it. The finding that the City is paying much more than the area market, needs to be corrected, in our opinion. 13 When we graph the results and draw trend (regression) fines through the data, the differences are very apparent. $30.10 $2S.00 $20.00 $15.00 $10.00 t i -- - V - - I _ I - 200 250 300 3S0 400 4S0 500 550 600 650 We presented results and the graphs of the management /professional survey and the general employee survey to the City Council in a workshop in November and asked two policy questions: 1. Do you want us to develop a pay schedule for the management /professional group that supports transition to a pay - for - performance compensation system? 2. Which pay policy line does the Council want us to use to develop a new pay plan for the general employee group: the public pay policy line or the area market line? When we applied the Point Factor Job Evaluation system to each and every JDO, the result supported a pay structure with five pay grades. On the one hand, this condensing of dozens of pay grades into five grades looks like an enormous change; however, the actual differences in current pay grades is minimal. Moving to five grades will create a lot more flexibility in making job assignments and managing the compensation system. Regarding the management /professional group, the Council's instruction was to develop a pay schedule that supports transition to a pay -for- performance compensation system. For the general employee group, the Council instructed us to develop a pay plan for this group that is based on the area market data. In summary, we find from this market review that the City of Oshkosh is on target overall with its management /professional staff pay structure relative to other 14 municipalities and exceeds the area labor market for its general employees. We have used this information to develop pay structures in the following section of this report that are consistent with City Council direction. We want to point out that we intentionally have not addressed pay plan recommendations for the bargaining unit positions in protective service and transit occupations. We have made recommendations for the non - bargaining unit management classifications in those areas. The changes in collective bargaining legislation enacted this year continue to provide for bargaining of wages, hours, and working conditions for protective service and transit employees. The City and the unions are, or will soon be involved in negotiations for successor agreements. Per the scope of work for this project, protective service and transit employees completed JD(Xs, we evaluated job content, and we have surveyed benchmark positions in the protective service and transit units. In order to provide the best support for all parties engaged in the bargaining process, we have provided an analysis of this information to the City administration for its consideration. As the parties weigh their options in working toward new agreements, we hope that this information can be helpful in this important endeavor. VI. New Pay Structures We are recommending two distinctly new pay plans for the City of Oshkosh. For the management /professional employee group, we recommend the City replace the current plan with a new plan that: 1. Reduces the number of active pay grades from 17 to 10. 2. Establishes ranges that: a. Sets the Control Point based on the market regression analysis. b. Increases range maximums from 112.5% of the Control Point to 120 %. 3. Continues the policy of pay steps from the range Minimum to the Control Point based on annual performance reviews that at least meet expectations. 4. Makes all pay increases between the Control Point and the Maximum solely based on pay - for - performance. 5. Allocates all position to at least the minimum salary of the appropriate pay range based upon job evaluation scores. b. Any employee whose current pay is between the range Minimum and the Control Point should be placed on the step immediately higher. 7. Any employee whose pay is higher than the new range Maximum would be red - circled until the pay range becomes greater than the current rate as a result of future across the board increases. The pay plan we are recommending that reflects these major policy points is presented on the following page and the job classification allocation list is included with this report as Exhibit 1. The plan is presented in hourly rates because that is how we measure pay in our surveys to control for differences in work schedules between 15 employers. The City will need to convert this to a bi- weekly, monthly, and annual salary schedule that is consistent with its scheduling practices. We note that the City has significant pay compression issues in several departments between bargaining unit employees and their direct supervisors. The problem is most acute in the protective service departments and is becoming an issue in the public works divisions. It remains to be seen how much the move to closer alignment with FLSA- based overtime standards will go to relieve the compression, but it should help. The City has pay compression relief mechanisms in its current pay policies that it extended into the new policies, and it should move to implement those policies if the compression persists. MANAGEMENT /PROFESSIONAL EMPLOYEE PAY PLAN (Effective 1/1/2012) GRADE PTS IN GRADE FR TO 87.5% MIN 90.0% STEP 2 92.5% STEP 3 95.0% STEP 4 97.5% STEP 5 100.095 CONTROL PAY FOR PERFORM 1201096 MAX M1 1126 1232 47.76 49.12 50.49 51.85 53.22 $4.58 4 65.50 MP9 1024 1125 43.58 44.83 46.07 47.32 48.56 49.81 4 59.77 MP8 931 1023 39.79 40.93 42.06 43.20 44.34 45.47 - 54.57 MP7 847 930 36.34 37.38 38.42 39.46 40.49 41.53 MP6 770 846 33.21 34.15 3510 36.05 37.00 37.95 i 45-54 MP5 700 769 30.36 31.22 32.09 32.96 33.82 34.69 41.63 MP4 636 699 27.76 28.56 29.35 30.14 30.94 31.73 4 38.08 MP3 579 635 25.41 26.13 26.86 27.59 28.31 29.04 34.$5 MP2 526 578 23.27 23.93 24.60 25.26 25.93 2659 4 31.91 MPl 475 525 21.32 21.93 22.54 23.15 23.76 24,37 .4 29.24 The job classification list is included with this report as Exhibit 1. in terms of implementation, effective January 1, 2012, there would be no general base pay increase and the new pay plan would have the following impact: 18 employees in the management /professional group would be red - circled. * 45 employees would have salaries that would be in the "performance based" pay zone. • 13 employees are currently paid less than their new range minimums and should be increased to the new range minimum levels • 20 employees have current salaries between the new range minimums and the control point of their ranges and would need to be placed on the pay step immediately above their current rate. For the general employee group, we are recommending the plan presented on the following page. It would: 16 1. Reduce the number of pay grades from dozens to 5 grades. 2. Establish ranges with maximums that are based on the regression results for the area market data, 3. Establish six pay steps in each grade with progression be in annual increments provided performance meets expectations. 4. Allocate all position to the appropriate pay range based upon job evaluation scores, 5. Place any employee whose current pay is between the range Minimum and the range Maximum on the step immediately higher. 6. Red - circle the pay of any employee whose pay is higher than the new range Maximum until the pay range becomes greater than the current rate as a result of future across the board increases. GENERAL EMPLOYEE PAY PLAN (Effective January 1, 2012) GRADE PTS IN GRADE FR To 87,5% MIN. 90.0% STEP 2 9215% STEP 3 95.0% STEP 4 975% STEP 5 100.0% MAX. Gs 519+ 22.40 23.04 23.68 24.32 24.96 25.60 G4 432 518 19.57 20.13 20.69 21.25 21.81 22.36 63 361 431 16.52 17.04 17.47 17.94 18.41 18.88 G2 300 360 14.04 14.44 14.84 15.24 15.64 16.04 61 </= 299 11.90 1124 12,58 12.92 13.26 13.60 The job classification allocation list is included with this report as Exhibit 2. The financial impact of the new general employee pay plan should be significant over the next several years with a lasting long -term impact in reduced payroll costs. Our estimate is that when fully implemented, the City payroll can be reduced over $1 million. We also understand that with a red - circling policy, this will take time to implement, and since we don't know when employees will resign or retire in the future, it's difficult to estimate accurately. The following table shows the extent of red - circling that would occur. The first column is the percentage that current pay rates exceed the new range maximums; the second column is the number of employees in that category. 17 Pct. Over Max. No. > 401 3 31 -4©% 23 21 -30% 22 11 -20% 71 1-10% 53 Total Red - circled 172 Total Employees 198 Average Red - circle 17% We want to point out very clearly that "red- circling" does not necessarily mean a hard "pay freeze." Circumstances can change. For example, we could see a period of inflation and a dramatic increase in property values and tax proceeds. Until that time however, as funding allows, we recommend that the City consider granting lump sum payments to red circled employees if across the board increases are approved, to offset the rising cost -of- living. It is important to be flexible. As economic conditions improve and labor markets tighten, the City will also want to consider market adjustments to the two pay plans to maintain its competitive position. Will the City be able to recruit competent staff at the new, lower pay scales? We've discussed this at length with the City administration and conclude that we should be able to do so. As part of our market analysis, we examined two years of recruitment information to see how many applicants the City received for each job, the rates of pay of the persons interviewed, and the rate paid to the applicant selected. Our conclusion was that the City fairly consistently was paying more than the applicant pool required a difference that was likely to be even greater when the City's superior benefits program is considered, as a result of the structures described previously. If the City finds over time that it is paying too little to attract a competent workforce, then it can increase the schedules. However, this plan will enable the City to benefit from a new wage foundation that gives it a chance to preserve city jobs and city services. It is our view that if the City doesn't do this, services and corresponding positions may need to be eliminated in 2013. At the very least, this strategy, combined with a red - circling policy that does not reduce the pay of any current employee, can mitigate the current and future impact on employees and the citizens of Oshkosh. The potential positive financial impact of a pay - for - performance system for managers and professionals also is significant. We expect productivity to increase. We expect cost savings. We expect these will help finance the costs of implementing pay - for- performance. We certainly understand this will require a new management approach, and we have addressed this issue in a later section of the report. We are aware that the City has not budgeted for any employee to receive a general pay increase in 2012, and we are not proposing one here. We also are not proposing that any employee's base pay be reduced as a result of this study. As we explained in 18 our project briefings at the onset of the study, the worst thing from an employee perspective is that will happen in any of our recommendations is that base pay will be remain unchanged. The City of course can deviate from this red - circling method; however we strongly urge avoiding pay reductions if possible in 2012, understanding that employees are faced with reduced disposable income from changes in the benefits programs and the elimination of the longevity pay program. We know the financial challenges the City is facing are significant so it may not be possible to honor a red - circling policy beyond 2012. If the future choices are pay vs. jobs, the decisions will become much more difficult to make. In terms of cost impact, our discussions with the administration indicate that the salary savings from replacing known retirements will generate more than enough savings to finance implementation of these new plans. Therefore, the fiscal impact will be positive in 2012 and no additional funds need to be budgeted. VII. Performance Management and Pay for Performance So, who has a successfully managed pay for performance system among Wisconsin and counties? The answer is, very, very, very few exist. Probably the best example is Waukesha County. It implemented a performance -based pay system for managers, supervisors, and professionals over a decade ago and has strengthened the program in the intervening years. Every Waukesha County employee has to have a performance review, and those persons responsible for managing performance are eligible for either a base pay increase or a bonus as a result. it is our understanding that employees embrace and support the program. Other communities have tried to implement pay for performance and failed, primarily for two reasons: 1. Inconsistent application of measured standards across the organization. 2. Political unwillingness to fund the program. Implementing pay for performance is not inexpensive. The primary costs are in the internal resources that are necessary to develop performance measures, training managers in effective measurement and evaluation, and system auditing to create and maintain consistency while continuing to drive the program forward. Simply stated, it requires discipline and commitment. As part of our project, we assessed the extent to which performance management is currently in place and are very pleased to report that several departments are making significant progress. Both the Police and Fire departments have substantial systems and Community Development is moving rapidly toward expanding measured standards across its divisions. In other departments, performance management exists; however, it largely supports pay step advancement, is less consistent once an employee reaches the maximum pay rate of her or his range, and measured standards can be improved. 19 The Job Description Questionnaire that employees completed as part of this project asks incumbents to identify ways the City can measure how well each is performing the job's essential duties. We will provide the City with a performance management review template that it can use to convert JDQ content into a review instrument. It is a good place to start building the foundation for an enhanced performance management system. We discussed this topic at length with City administration because the burden would fall on them if pay for performance is to move forward. Accordingly, the City Manager has indicated that beginning in 2012, the Assistant City Manager will work with department heads to develop measurable performance standards for managers, supervisors, and professional staff and test the model to prepare for full implementation in 2013. We expect that the City Council will be asked to fund a pay for performance budget for 2013, perhaps out of operational or turnover savings. We strongly recommend that for the first year of implementation, all performance awards should be non -base building salary awards. The advantage of using non -base building salary increases the initially is it allows for mistakes to be made in evaluations and allocations. Although the goal is to manage this appropriately, should a mistake occur with a non -base increase, the mistake does not become part of base pay that continues to exist over time. Our prediction is that pay for performance systems for public sector managers will be a popular compensation effort in Wisconsin throughout the next generation. The type of step system pay plan that Oshkosh currently employs really was our only practical alternative that provided some way of keeping management and supervisory pay somewhat higher than the pay of employees they are supervising. What this new economy will require of all of us is better performance. To compete, we will need to get better at what we do. Every employee should have an annual performance evaluation with feedback related to objective performance standards. It's just good management and as important a management task as any. It provides a path to improvement. Should we extend pay for performance to general employees, too? Although it is critical that we implement performance management across the organization, we believe we should start pay- for - performance with managers, supervisors, and professionals, first. This has to be a top -down implementation; the people in charge have to create the right environment and systems before we consider pay for performance for general employees. But to be clear, we recommend developing and implementing sound performance management processes for all City positions. We just would recommend holding off on pay- for - performance for general employees until we have the system working effectively. 20 Vill. Benefits and Total Compensation The term "fringe" benefits usually is traced back to WWII and the war labor board policy of controlling compensation increases in the face of wartime scarcity and inflation. Policymakers concluded that benefits didn't amount to much so they were on the "fringe" of compensation and, therefore, not covered by pay regulation. In the post WWII era of private sector collective bargaining all of that changed dramatically and elaborate fringe benefit programs emerged largely because employer contributions to those programs were not taxed. When public employee collective bargaining gained traction in the 1960's and 70's, public employers emphasized benefit programs that reflected a long - serving career workforce and negotiated almost universal employer payment of those benefits. Interest arbitration criteria cemented those benefit levels in place and supported increasing levels of pay largely isolated from the changing employment scene in the private sector where the heavy industry unionized jobs that set the benefit trend were lost to competition outside the United States. The City of Oshkosh, like all Wisconsin public employers provides a top quality benefit program for its employees, and this is one of the most valuable strategic advantages the City has in recruiting and retaining a quality workforce. Benefits programs are divided into four major cost /program categories as follows: • Mandatory benefits of social security retirement and disability insurance coverage, Medicare coverage, unemployment insurance protection, and workers compensation coverage. • Wisconsin Retirement System — an excellent, fully funded state retirement system under the defined benefit pension model. • Medical insurance. • Leave benefits — sick leave, vacation, holidays, and various forms of family and personal leave. The City is implementing two major changes in its benefits program. The first involves the pension system. Acts 10 & 32 required all public employers in Wisconsin to deduct the employee share of the annual pension charge from the paychecks of each employee, except existing protective service employees and all transit workers. The latter continue to have these benefits bargained collectively. Accordingly, the City began deducting pension contributions from management and professional employees in September, along with new police and fire hires, and will do so for all general employees whose collective bargaining agreements expire in January. The City also has proposed or will be proposing deductions to the protective service and transit unions for all of their employee members as well. Compared to most private sector workers, a free pension in a fully funded, secure pension system with an adequate retirement income formula is an exceptional employee benefit. It is true that the employee portion of the contribution belongs to 21 the employees, and is, in effect, a savings program; however, requiring employees to make that contribution also reduces disposable income. We understand the impact of this change on employee morale, particularly at a time when wages are generally frozen. The second area of major change in the benefits program at the City of Oshkosh is in the health insurance area. Act 10 mandated employees covered by the State health plans begin to contribute 12% of premium. The City of Oshkosh manages a self- insured program through the assistance of a third party provider. In 2011, employee contributions averaged 6.1 %. The City's objective for 2012 has been to preserve services and jobs while limiting taxes. In order to do so, it took advantage of the one -time changes in pension costs and implemented a number of changes to its health insurance program, including higher employee out of pocket provisions and deductibles, plan consolidation, and a requirement that employees contribute 11% of premium. In order to mitigate to the size of the increase to employees, the City was able to use a reasonable amount of retained insurance fund balances. The financial picture for benefits going forward is not good. Where should we go from here with the City's benefits programs? Although we don't know the full impact of changes in federal health care mandates, we have to assume that health insurance premiums will continue to rise, and, under the current formula for employer /employee cost - sharing, the City of Oshkosh would carry most of the burden. Under this set of assumptions, by the end of this decade, employee contributions would increase almost $700,000; the City cost would increase by approximately $5 million. We don't believe this is a sustainable financial burden for City taxpayers and does not equitably reflect what most employees in the area receive. The graph below shows the dramatic change in premium costs using an assumption of a 7% annual average increase in premium. And they could go higher. 22 $1 -� I $12,000,000 - $10,000,000 - -- $8,000,000 $6,000,000 ...... ............... $4,000,000 I - -- Employees Share �+Gly Share i i $2,000,000 — — 17 2008 2010 2012 2014 2016 2018 2020 2022 The Kaiser Family Foundation and Health Education and Research Trust conduct extensive research on employer health benefits. According to their most recent report (http: / /ehbs.kff.org /), the average employer contribution to family level coverage among larger employers is substantially less than the cost of the City's plan, as is the employee contribution. The table below shows the differences. Family Employee Employee Premium Share Percent Kaiser Average $15,550 $3,888 25% City Plan $20,752 $2,283 11% If the City is going to protect services and jobs as its top priority, we believe it will have to move to a higher level of employee contribution to premium. Our recommendation is that the City consider adopting a policy objective of gradually moving to an 80/20 premium split between employer and employee premium contribution by having future premium increases divided 50/50 until the 80/20 split is in place. In the area of employee leave benefits, we believe we will see more public employers gravitate to a more employer common paid time off plan. Not only do these plans provide an opportunity for organizational savings, they also standardize leave 23 benefits for ease of use and application for employees and supervisors. Such a plan would include disability insurance as the replacement for the current benefits of accumulated sick leave and then establishes one form of leave that would replace sick leave and the other separate traditional forms of leave such as; vacation leave graduated by seniority, paid floating holidays, and other forms defined by personal leave policies. We felt this was too great a change to consider for 2012 with all of the changes taking place in regard to pension and health insurance. Instead, we recommend the City review plan options in 2012 and consider possible implementation in 2013. Although information is currently provided on employee payroll documents, I believe the City of Oshkosh and its employees would also benefit significantly from annual statements that detail all of the components of total compensation. Some years ago, there were two study reports that we felt demonstrated clearly the value of benefits statements: • The first study measured how workers value pay compared to benefits. They were asked whether benefits were less important, as important, or more important than pay. The result: two thirds of respondents valued benefits as highly if not more highly than pay. (A more recent survey asked which was more important and the result was almost a 50/50 split.) • The second study asked employees what their benefits cost their employer as a percentage of cash payroll. The average was 20 %. The reality is 40 -50% in many cases. What this means from a "value" standpoint is that communication about the true value and cost of employee benefits program can yield an immediate utility return to an employer that uses them on a regular basis. The compensation professional association World at Work, www.worldatwork.org, focuses on a total compensation model, and this is the standard now used in other progressive human resources organizations. We know that the City's benefits program is a valuable asset in recruitment and retention, and it is important that the City measure and communicate the value proposition. Therefore, we recommend the City dedicate the information technology resources in -house to develop a cost- tracking system that measures each employee's cost per productive day worked as part of its efforts to define measurable program outcomes. This data then can be used to create individual total compensation statements on an annual basis. We have provided the City Human Resources Department with several examples of individual annual reports that detail employee pay and benefits based upon actual payroll information. The annual cost should be less than $25 per employee and worth every cent. 24 IX. Compensation Policy Review and Appeals We reviewed the compensation portions of the City's employee handbook prior to its submission to the City Council, so further comment here is not necessary. The most difficult policy areas were overtime pay practices and the future of the longevity program. Regarding overtime pay policies, the City selected a position that will continue to consider limited forms of scheduled time off as time worked for purposes of overtime calculation, and made material changes in its policies. We recommend that the City continue to review the impact of these policies on staffing patterns and costs into 2012 and consider any appropriate modifications to fine tune its overtime payment policies for 2013. The Council has acted to end the longevity pay program as many communities are doing. The current system was applied unevenly across city occupation groups and no longer served its original purpose. As is our practice, we recommend the City adopt the classification appeal process that we have offered so that any employee who feels she or he was classified inappropriately can ask for a review. Appeals would not include the structure of the pay plan or implementation policy; it would extend only to matters of classification based upon documentation of substantial error or a major change in job duties during the course of the project. We would review the appeals and make recommendations, and the City Manager would make the final decision. X. Conclusion We cannot overstate the significance of the changes recommended in this report. Challenging times require bold action and determined leadership. The circumstances are right for the City of Oshkosh to move forward with these changes to its compensation program. We have our careers invested in improving the working lives of our client's employees because we know that is one of the things that makes a great organization great. Sometimes, however, a course correction is required. That time is now. Whether we like it or not, we are in the midst of profound economic and cultural change. We can view this as a crisis or an opportunity. We urge the City to view the opportunity. Our mission is to enhance and preserve public service. To do so, we have to help our clients protect their core services and make the sacrifices necessary to accomplish that objective. This means protecting services and the corresponding jobs first and adjusting compensation levels where appropriate, causing as little harm to both the citizens and the City's employees as possible. We believe implementing the recommendations in this report will move the City in the right direction. 25 We are committed to helping the City of Oshkosh make its compensation program successful. Thank you for the opportunity to work with the City on this important project. M CITY OF OSHKOSH MANAGEMENT PROFESSIONAL. STAFF PAY PLAN Effective 1/1/2012 87.5% 90.0% 92.5% 95.0% 97.5% 100.0% 120,0% GRADE MIN STEP 2 STEP 3 STEP 4 STEPS CONT PT MAX MP10 $47.76 $49.12 $50.49 $51.85 $53.22 $54.58 $65,50 Assistant City Manager /Director of Administrative Services Director of Public Works MP9 $43.58 $44.83 $46.07 $47.32 $48.56 $49.81 $59.77 City Attorney Director of Finance MP8 $39.79 $40.93 $42.06 $43.20 $44.34 $45.47 $54.57 Director of Community Development Fire Chief Police Chief MP7 $36.34 $37.38 $38.42 $39.46 $40.49 $41.53 $49.84 Assistant Director of Public Works /City Engineer Director of Parks Director of Transportation Public Works Utility Bureau Manager MP6 $33.21 $34.15 $35.10 $36.05 $37.00 $37.95 $45.54 Assistant City Attorney Assistant Fire Chief Director of Museum Director of Senior Services Human Resources Bureau Manager Information Technology Bureau Manager Planning Services Division Manager Police Captain Public Works Field Operations Bureau Manager EXHIBIT 1.1 CITY OF OSHKOSH MANAGEMENT PROFESSIONAL STAFF PAY PLAN Effective 1/1/2012 87,5% 90.0% 92,5% 95,0% 97.5% 100.0% 120.0% GRADE MIN STEP 2 STEP 3 STEP 4 STEP 5 CONT PT MAX MP5 $30.36 $31.22 $32.09 $32.96 $33.82 $34.69 $41.63 Assistant Finance Director Chief Building Official City Assessor City Clerk Civil Engineering Supervisor Economic Development Expeditor General Services Bureau Manager Wastewater Treatment Plant Division Manager Water Distribution Division Manager Water Filtration Plant Division Manager MP4 $27.76 $28.56 $29.35 $30.14 $30.94 $31.73 $38,08 Civil Engineer Senior Deputy City Assessor Electrical Traffic Division Manager Financial Accounting Division Manager Financial Utility Division Manager Golf Course Division Manager Landscape Operations Division Manager Parks Operations Division Manager Parks Revenue & Facilities Division Manager Principal Planner - Housing & Neighborhoods Principal Planner - Land Use /CDBG Coordinator Public Works Mechanic Division Manger Public Works Street Supervisor Transportation Mechanic & Maintenance Division Manager EXHIBIT 1.2 CITY OF OSHKOSH MANAGEMENT PROFESSIONAL STAFF PAY PLAN Effective 1/1/2012 87.5% 90.0% 92.5% 95.0% 97.5% 100.0% 120.0% GRADE MIN STEP 2 STEP 3 STEP 4 STEP 5 CONT PT MAX MP3 $25.41 $26.13 $26.86 $27.59 $28.31 $29.04 $34.85 Archivist Assistant Director Of Museum Assistant Water Distribution Division Manager Associate Planner /Zoning Administrator Chemist Community Media Services Coordinator Curator Environmental Health Specialist GIS Administrator Media Services Operations Specialist Office Administration Division Manager Program Coordinator Public Health Nurse Registrar Safety & Risk Management Coordinator Wastewater Maintenance Supervisor Wastewater Treatment Plant Supervisor MP2 $23.27 $23.93 $24.60 $25.26 $25.93 $26.59 $31.91 Associate Planner /GIS Specialist Benefits & Wellness Coordinator Building Systems Inspector Civil Engineer Community Program Coordinator Crime Analyst Database Administrator Golf Professional & Clubhouse Supervisor Graphic Artist Marketing & Membership Coordinator Payroll & Training Coordinator Programmer /Analyst Public Works Sanitation Division Manager Receptionist Sanitarian Transit Coordinator Transit Operations Supervisor EXHIBIT 1.3 CITY OF OSHKOSH MANAGEMENT PROFESSIONAL STAFF PAY PLAN Effective 1/1/2012 87.5% 90.0% 92.5% 95,0% 97.5% 100.0% 120.0% GRADE MIN STEP 2 STEP 3 STEP 4 STEP 5 CONT PT MAX MP1 $21.32 $21.93 $22.54 $23.15 $23.76 $24.37 $29,24 Executive Assistant Housing Inspector Management Assistant Plumbing Inspector /Pretreatment Coordinator Property Appraiser EXHIBIT 1,4 CITY OF OSHKOSH GENERAL EMPLOYEE PAY PLAN Effective 1/1/2012 87.5% 9010% 92.5% 95.0% 97.5% 100.0% GRADE MIN. STEP 2 STEP 3 STEP 4 STEP S MAX. G5 $22.40 $23.04 $23.68 $24.32 $24.96 $25.60 Industrial /Electrical Technician Lead Civil Engineer Technician Maintenance Coordinator G4 $19.57 $20.13 $20.69 $21.25 $21.81 $22.36 Administrative Assistant Civil Engineer Technician Deputy City Clerk Electrical Mechanical Technician Electrician Engineering Specialist Equipment Mechanic Exhibit Technician Housing Specialist Instrumentation Technician Lead Arborist Lead Cashier Lead Construction Worker Lead Equipment Operator Lead Parks Maintenance Worker Lead Vehicle Mechanic Lead Water Equipment Operator Lead Water Maintenance Worker Maintenance Mechanic Plant Electrician Senior Buyer Telecommunications Specialist Vehicle Mechanic EXHIBIT 2.1 CITY OF OSHKOSH GENERAL EMPLOYEE PAY PLAN Effective 1/1/2012 87.5% 90.0% 92.5% 95.0% 97.5% 100.0% GRADE MIN. STEP 2 STEP 3 STEP 4 STEP S MAX. G3 $16.52 $17.00 $17.47 $17.94 $18.41 $18.88 Account Clerk 11 Arborist Building Maintenance Custodian City Sealer Clerk Dispatcher Court Liaison Clerk Equipment Operator Horticulturist Lead Sanitation Operator Office Assistant Parks Maintenance Worker Parks Trades Technician PC Hardware Technician Production Specialist Property Evidence Clerk Traffic Painter Utility Operator Wastewater Treatment Liquids Operator Wastewater Treatment Solids Operator Water Filtration Operator Water Maintenance Worker Water Meter Service Worker Welder EXHIBIT 2.2 CITY OF OSHKOSH GENERAL EMPLOYEE PAY PLAN Effective 1/1/2012 87.5% 90.0% 92.5% 95.0% 97.5% GRADE MIN. STEP 2 STEP 3 STEP 4 STEP 5 100.0% MAX. G2 $14.04 $14.44 $14.84 $15.24 $15.64 $16.04 Account Clerk I Computer Operator Groundskeeper Parking Control Officer Receptionist Records Clerk Sanitation Operator Secretary Shop Maintenance Worker Technology Support Services Coordinator Telecommunications Clerk Wastewater Treatment Maintenance Worker Word Processing Operator Zoo Specialist G1 $11.90 $12.24 $12.58 $12.92 $13.26 $13.60 Cashier EXHIBIT 2.3