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2014-371-Minutes for Meeting May 28,2014 Recorded 7/15/2014 DESCHUTES COUNTY OFFICIAL RECORDS cJ 7814.371 NANCY BLANKENSHIP, COUNTY CLERK COMMISSIONERS JOURNAL 07/1812014 08:18:00 AM I II II IIIIIIiIIIIIIIIII I I III Do not remove this page from original document. Deschutes County Clerk Certificate Page Oor vi"Es c�4 e Z i Deschutes County Board of Commissioners 1300 NW Wall St., Suite 200, Bend, OR 97701-1960 (541) 388-6570 - Fax (541) 385-3202 - www.deschutes.org MINUTES OF BUDGET MEETING DESCHUTES COUNTY BOARD OF COMMISSIONERS WEDNESDAY, MAY 28, 2014 —Elected Officials Compensation Allen Room, Deschutes Services Building Present were Erik Kropp, Deputy County Administrator; Mike Maier, Clay Higuchi and Bruce Barrett, Budget Committee; Wayne Lowry and Teri Maerki, Finance; Danielle Fegley, Human Resources; Dave Doyle. County Counsel; and, for a portion of the meeting, Jodie Barrum, citizen. No media representatives were present. Meeting minutes were taken by Bonnie Baker. Bruce Barrett opened the meeting at 12:30 p.m. Erik Kropp explained the County's compensation philosophy. Danielle Fegley provided some comparison information, from similar counties. She said they were looking at this in a slightly different way, through percentiles. Mr. Kropp noted that the 75th percentile is the top step in the comparison counties. Ms. Fegley said that there are seven steps for management positions as well. Mr. Kropp explained that this is meant to represent experience in that job. Step 1 is much less complex. This applies to all employees except elected officials. Department heads can hire at step 2, but anything higher needs administrative approval. There are many factors to consider. Mike Maier asked if they were satisfied with the five counties they used to compare, or if they should go out of state or expand further in Oregon. Mr. Kropp stated the five are the competition, and includes some that are more urban and some that are less. They use the same for union negotiations. Ms. Fegley gave a snapshot summary of the Assessor information. The base salary information was from AOC in March 2014. Some counties are home rule, some are not; and certain positions in some counties are non-elected. All were annualized so it would be easier to compare. Minutes of Budget Meeting—Elected Officials & Road Wednesday, May 28, 2014 Page 1 of 6 Benton County's Assessor is non-elected. Mr. Maier stated their job duties might be different because of this. Ms. Fegley said some duties are aligned differently. Deschutes County allows for longevity pay while other counties do not. This is at $65 per month for every five years of service. Deschutes County's Assessor's salary is $2,324 less than the median. Mr. Kropp said you can't focus on the individual or the work product, but the value of the position itself. The Clerk's position is similar, about $2,734 less than the median. Mr. Maier asked for Mr. Higuchi's opinion about the value of the positions. Mr. Higuchi replied it depends on the person in the position. For some it might be too much; others should make more. Mr. Maier said it is not their role to evaluate the performance of these individuals. The voters are to do this. Mr. Higuchi stated. they should look at the 50th percentile. Voters won't know what is valuable or not. Mr. Maier said the salaries should be competitive so that qualified people will want to run for the position. It is different if it were your personal company. However, the question is, do you attempt to bring everyone to the 50th percentile. Mr. Barrett said that it was not uniform last time this was decided. Mr. Higuchi agreed that they should remain competitive and not base this on the economy. Mr. Maier thinks they should look at each position separately. Mr. Kropp feels this is the right approach. The other factor is that employees will receive a 1.6% COLA as well as management. Mr. Maier asked if they should have a formal, written policy on this. Mr. Kropp stated that the makeup of the committee could change. Mr. Maier asked if the Hay Group Study will include the philosophy of the 50th percentile. He asked if there should be a different level for management and other non-represented. Ms. Fegley said that the 75th percentile is the top step. Regarding Justice Court, in some counties this person is not an attorney, so it is harder to evaluate. Mr. Barrett feels that across the board to the 50th percentile is appropriate. Ms. Fegley reminded the group that the County includes longevity pay while others don't. Mr. Kropp said in 2012 the Commissioners were offered a 2% increase but they declined to take it. This was at a time when everyone else was taking a COLA freeze. Minutes of Budget Meeting— Elected Officials & Road Wednesday, May 28, 2014 Page 2 of 6 MAIER: Move a 3% increase across the board. BARRETT: Second. The motion died for lack of consensus. Mr. Higuchi said the District Attorney is already paid over the median. Mr. Maier pointed out that the D.A. Office is the biggest law firm here. Mr. Higuchi does not like a motion across the board. Some should get 3% and some should get zero. He asked why the Sheriff should be making more than most others. Mr. Maier said that some counties have a Sheriff who doesn't cover the same type of services or at the same level. Mr. Maier would like to bring the Clerk and Assessor up to the 50th percentile first. Ms. Fegley said the Treasurer position is unique. Some others have a separate elected Treasurer. Others have a finance director with treasurer duties, not elected, with no additional stipend. MAIER: Move an increase of 3% for all elected officials, except the Assessor and Clerk. Those would be at 4%, plus the add pays for all. BARRETT: Second. The vote was unanimous. This session ended at l:00 p.m. The Commissioners and Torn Anderson returned at 1:20 p.m., and others joined the meeting. Present were Commissioners Tammy Baney, Anthony DeBone and Alan Unger. Also present were Tom Anderson, County Administrator; Erik Kropp, Deputy County Administrator; Mike Maier, Clay Higuchi and Bruce Barrett, Budget Committee; Wayne Lowry and Teri Maerki, Finance; Dave Doyle; County Counsel; Chris Doty, Tom Shamberger, Randy McCulley, Kristi Putschler, Susan Bailey and Kelli Candella of Road; and one other citizen. Mr. Doty gave a PowerPoint presentation said they developed a new mission statement for the department. The new mission statement is: we strive to maintain the quality and improve the experience for all users of the DC transportation system. Minutes of Budget Meeting--Elected Officials & Road Wednesday, May 28, 2014 Page 3 of 6 Mr. Doty elaborated on the main highlights of the statement: maintaining the quality and improving the experience, and for all users. They are at 52.5 FTE plus seasonal workers. There is a team effort to administer the weed control program. They are more involved in partnering with other agencies for mutual benefit, which helps to utilize some of the more specialized equipment more often. The theme of the budget this year is project development. Mr. Doty referred to the presentation for their four-point business and budget strategy. They will focus resources on maintenance and sustaining assets. Pavement management comes first. Staff operations including delivering core services, such as preventive maintenance, snow/ice response, prep work for chip seal and other projects; and contract as necessary and appropriate for products & services, keeping quality in mind. Equipment purchase/replacement/lease/sharing will be to support core services. Capital project development is to sustain quality: maintain capital reserves to leverage grant funding through match (SDC and non-SDC); and internally fund with SRS/PILT as resources become available. Regarding PILT, $500,000 was budgeted for 2013, but they unexpectedly received. over $1.7 million. It is allocated on a two-part methodology, through a percentage based on entitlement land. There are two methodologies, but the payment is based on the higher amount and population. Secure Rural Schools is deducted from this amount, and that amount goes down each year. The SRS funding is restricted to roads; the PILT money is not restricted in that manner. The Board allocated 85% to Roads and 15% to natural resources development. This is how it was budgeted for this year, and funding apparently has been reallocated for one more year. There has been some positive growth in the state highway tax allocations to the County. This may be a 2% increase overall. It is difficult to anticipate the cost of asphalt, but it has remained fairly stable for some time. Minutes of Budget Meeting—Elected Officials & Road Wednesday, May 28, 2014 Page 4 of 6 The Capital Project Reserves program was developed to handle some of the revenue. It projects out revenue and projects for five years. The pavement management program is felt to be sustainable. They get grants when possible, especially when working on roads owned by other agencies. They plan to chip seal about 118 miles of road this corning year. This is the first year in some time when they have not had to reduce FTE's. He feels they are at the minimal level in most areas of operation. Personnel expenditures are quite manageable. If staff is removed, more overtime is necessary, but they are at a good balance at this point. Mr. Doty said they work in close partnership with Solid Waste regarding equipment and the removal and re-use of rock. Commissioner DeBone asked about the biggest, most expensive things that are expected. Mr. Doty said that they will work away at it. The City of La Pine gets about $70,000 a year in gas taxes. They have a small staff that works on utilities mostly. They partner with the County on plowing within the City limits. Mr. Doty went over the paving schedule for next year, in various parts of the County. Most of their goals revolve around a healthy economy, and they promote policies and actions that will help stimulate economic vitality. They hope to maintain roads to the pavement condition index, before the road gets to the point where the road might have to be reconstructed. Mike Maier would like to see this at 85 rather than at 80. Mr. Doty stated that it is expensive to bring all up to this level. Commissioner DeBone pointed out that this is an average overall; some will be better than others. The trend is from 68.6% in 2010, increasing to 86.4% in 2013, and Mr. Doty hopes to get to 90% or better in a year or two. They also have to take into account all parts of the system. They also plan to update the Board on the capital program and schedule, as well as their fleet equipment program within the department and the work they do with fleet maintenance for other departments. Minutes of Budget Meeting—Elected Officials & Road Wednesday, May 28, 2014 Page 5 of 6 Chair Baney asked what happens if the $298,000 does not get transferred from Solid Waste to Road. Mr. Doty said it would affect capital projects. Chair Baney said they made this difficult choice when people were driving less and gas tax was lesser, and SRS and PILT were unknown. They did not have a chance to determine when this transfer should stop and the departments are to be holistic. Mr. Doty went over the additional funds to the department from various sources. Mr. Higuchi asked if a developer pays a fee for a certain location, if that money remains to address needs at the location. Mr. Doty stated that it does. Commissioner Unger said he is proud at the strides the department has made, and. how well they manage their assets. Being no further discussion, the session ended at 2:15 p.m. DATED this / Day of 2014 for the Deschutes County Board of Commissioner . jr Tammy Baney, Chair ' a/A /240' Anthony DeBone, Vice Chair ATTEST: al.._ , Alan Unger, Commissioner Recording Secretary Minutes of Budget Meeting— Elected Officials & Road Wednesday, May 28, 2014 Page 6 of 6 ccES u�ff S x jS'�3 DESCHUTES COUNTY Summary Elected Officials Survey May 20, 2014 This survey includes the following elected positions: Assessor Clerk Commissioner District Attorney Sheriff Justice of the Peace Treasurer Salary data was collected from the following Oregon Counties: Population Benton 87,725 Clackamas 386,080 Deschutes 162,525 Jackson 206,310 Lane 356,125 Marion 322,880 V O CO CO LC) CO CO 6 ° a. Q O CD LO~ O O n rr" �. M (D Lf7 in 1` r N- Q, N. 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C U) (6 `0 d! d 40 d C6 C a) m V c c c a q o. ^' C O a d o a) 6 ; a 6 o p i6 0 = m F 4 3 n o c) a n C/) L - DESCHUTES COUNTY SALARY SURVEY for ELECTED OFFICIALS May 2014 Assessor - Annual PERS 401(K)/457 Other Add County Annual Salary Contribution Contribution Pay Total Pay Benton (non-elected) $104,400 6.00% 3.00% $113,984 Clackamas (elected) $99,356 6.00% 6.27% $111,921 Jackson (elected) $88,858 6.00% 0.00% $94,189 Lane (elected) $101,520 6.00% 2.00% $6,780 $116,543 Marion (elected) $92,518 6.00% 7.50% $105,424 Median $99,356 $111,921 Deschutes County $97,032 6.00% 3.00%` longevity $105,940 (elected). Difference in $ -$2,324 -$5,981 DC Compared to Median Notes: Lane receives a car allowance of $565 per month, included as Other Add Pay. Salary and comp is current as of March 31, 2014. For non-elected positions with a base range, the top step of the range is presented. Deschutes County officials receive longevity pay based on length of service. DESCHUTES COUNTY SALARY SURVEY for ELECTED OFFICIALS May 2014 Clerk - Annual PERS 401(K)1457 Other Add County Annual Salary Contribution Contribution Pay Total Pay Benton (non-elected) $104,400 6.00% 3.00% $113,984 Clackamas (elected) $89,125 6.00% 6.27% $100,396 Jackson (elected) $86,694 6.00% 0.00% $91,896 Lane (non-elected) $100,441 6.00% 2.00% $108,597 Marion (elected) $79,447 6.00% 7.50% $90,530 Median? $89,125 $100,396 Deschutes County $86,391 6.00% (elected 3.00% longevity $94,322 Difference in $ -$2,734 -$6,074 IC Compared to Median '024. Notes: Salary and comp is current as of March 31, 2014. For non-elected positions with a range, the top step of the range is presented. Deschutes County officials receive longevity pay based on length of service. DESCHUTES COUNTY SALARY SURVEY for ELECTED OFFICIALS May 2014 Commissioners - Annual PERS 401(K)1457 Other Add County Annual Salary Contribution Contribution Pay Total Pay Benton $79,428 6.00% 3.00% $86,719 Clackamas $84,133 6.00% 6.27% $94,773 Jackson $93,309 6.00% 0.00% $4,800 $103,708 Lane $74,292 6.00% 2.00% $6,780 $87,105 Marion $76,606 6.00% 7.50% $87,293 Median $79,428 $87,293 Deschutes County $79,720 6.00% 3.00% longevity $87,038 Difference in$ $292 -$254 DC Compared to Median 0.37% Notes: Jackson receives a car allowance of $400 per month, included as Other Add Pay. Lane receives a car allowance of $565 per month, included as Other Add Pay. Salary and comp is current as of March 31, 2014. All Commissioners are Elected Officials. Deschutes County officials receive longevity pay based on length of service. DESCHUTES COUNTY SALARY SURVEY for ELECTED OFFICIALS May 2014 District Attorney, County Portion - Annual PERS 401(K)1457 Other Add County Annual.Salary Contribution Contribution Pay Total Pay Benton $23,691 6.00% 3.00% $25,866 Clackamas $39,163 6.00% 6.27% $44,116 Jackson $21,819 6.00% 0.00% $23,128 Lane $33,675 6.00% 2.00% $6,780 $43,189 Marion $25,646 6.00% 7.50% $29,224 Median $25,646 $29,224 Deschutes County $27,424 6.00% 3.00% longevity $29,942 Difference in$ $1,778 $718 DC Compared to Median 6.48% 2.40% Notes: State portions for D.A. base monthly salary increased 2% from 2 y y 2013 to $109,572, except Benton which is $92,340. Jackson County elected a new DA and the salary went down from last year. Lane receives a car allowance of$565 per month, included as Other Add Pay. Salary and comp is current as of March 31, 2014. All District Attorney's are Elected Officials. Deschutes County officials receive longevity pay based on length of service. DESCHUTES COUNTY SALARY SURVEY for ELECTED OFFICIALS May 2013 Sheriff - Annual Annual PERS 401(K)/457 Other Add County Salary Contribution Contribution Pay Total Pay Benton $104,259 6.00% 3.00% $113,830 Clackamas $152,255 6.00% 6.27% $171,509 Jackson $132,683 6.00% 0.00% $140,644 Lane $123,492 6.00% 2.00% $6,780 $140,300 Marion $119,746 6.00% 7.50% $136,451 Median! $123,492 '+ ?$140,300. Deschutes County $134,678 6.00% 3.00% longevity X147,041 Difference in $ $11,186 $6,742 DC Compared to Median 8.31% 4.59% Notes: Lane receives a car allowance of$565 per month, included as Other Add Pay. Salary and comp is current as of March 31, 2014. All Sheriffs are Elected Officials. Deschutes County officials receive longevity pay based on length of service. DESCHUTES COUNTY SALARY SURVEY for ELECTED OFFICIALS May 2014 Justice of the Peace - Annual PERS 401(K)/457 Other Add County Annual Salary Contribution Contribution Pay Total Pay Benton (no position) Clackamas $91,831 6.00% 6.27% $103,444 Jackson $71,981 6.00% 0.00% $76,300 Lane $50,930 6.00% 2.00% $55,066 Marion $75,255 6.00% 7.50% $85,753 Median $73,618' $81,026 ' Deschutes County $89,490; 6.00 3.00% longevity $97,705 Difference in$,' $15,872 $16,679 DC Compared to Median, 17.74% 17.07% Notes: Lane, Marion and Deschutes are part-time. All salaries are annualized based on 2072 hours per year. County FIE Hourly Clackamas 1 44.32 Jackson 1 34.74 Lane 0.75 24.58 Marion 0.6 36.32 Deschutes 0.61 43.19 Salary and comp is current as of March 31 , 2014. All Justice of the Peace officials are Elected Officials. Deschutes County officials receive longevity pay based on length of service. 071., a?„,„.0000 (i) 'cleo. 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