Scope of the Study To merge the pay plans of the PTCOG and NWPCOG

and to produce an Assignment of Classes to Grades for the new organization effective July 1, 2011

To prepare an employee allocation list assigning each employee to a title and salary grade and to calculate costs associated with bringing all employees to the minimum of the assigned grade

To recommend an organizational structure under which the new regional council could begin operations

Subsequently added, make recommendations on a benefits package

Pay Comparisons Data was collected from both COGs

Salary data was collected from the four largest and most relevant COGs in the state: Charlotte, Raleigh/Durham, Asheville and Hickory

The local government labor market of Greensboro, High Point, Winston-Salem, Guilford County and Forsyth County was also a factor

Recommendations were vetted with several departments heads in both organizations and with the two executive directors

Results of the Study PTCOG’s pay plan has been competitive with the

urban, local government labor market and with the largest urban COGs; NWPCOG’s pay plan was competitive in some areas but lagged significantly behind in most classes ( Workforce, Housing, Aging and Criminal Justice)

The adoption of the recommended pay plan and the proposed organizational structure will result in many employees getting salary increases in order to come to the new minimum – all but three of those employees are currently employed with the NWPCOG

Example Recommended starting salary for Long-Term

Care Ombudsman - $ 39,883

Actual salary for NWPCOG Ombudsman - $33,912

Increase needed to come to the minimum of the new range - $5,971

Results of the Study - Implementation

Implement the recommendations all at one time: Costly for one year Too late for most programs to absorb the

increases for next year

Implement over two years: If someone fails to meet the minimum

qualifications for the new job, increases with come when the requirements have been met, i.e. master’s degree

If someone meets the qualifications but is below the minimum, that employee will be brought to the minimum in two years

Results of the Study – Alternative?

An alternative that will result in lower implementation costs is to decrease the minimum starting salary for each classification Will not be competitive with other large NC

COGs Will not be competitive with urban local

governments who are the primary competition for good employees

Will not recognize the significance of the work that the regional council will be performing

Organizational Structure

Proposed Organization Structure

Three meetings were held with the two executive directors to discuss organizational issues

These recommendations are based on 36 years working in a COG and 18 of those years as executive director

It would be the structure I would want if I were to be the new executive director

Has been reviewed and agreed upon by both executive directors

Has retained or improved the position of almost every employee

Does not recommend an assistant director now; there is an assistant director in the pay plan

Piedmont Triad Regional Council

– Executive Management Team

Benefits

Recommended Vacation Accrual Rate

Years of Service NWPCOG PTCOG Recommended

< 2 11.75 12.0 12

2 to 4 13.75 12.0 13

5 to 9 16.75 15.0 16

10 to 14 19.75 18.0 19

15 to 19 22.75 21.0 22

20 + 25.75 24.0 25

Recommended Holidays

Holiday Observed NWPCOG PTCOG Recommended

New Year's Day 1 1 1

MLK's Birthday 1 1 1

Good Friday 1 1 1

Memorial Day 1 1 1

Independence Day 1 1 1

Labor Day 1 1 1

Veterans Day 1 0 1

Thanksgiving 2 2 2

Christmas 2.5 3 2/3

Recommended Sick Leave Accrual Rate

Both NWPCOG and PTCOG give one day per month for sick leave which is standard local government practice.

It is recommended the sick leave accrual rate remain at one day per month.

Supplemental Deferred

Compensation – 401(K)

NWPCOG PTCOG Recommended

2.5% 2.0% 2.5%

Recommended Longevity Pay Plan

Years of Service NWPCOG PTCOG Recommended

0 to 4 0.00% 0.00% 0

5 to 9 0.00% 2.00% 2.00%

10 to 14 1.50% 2.75% 2.75%

15 to 19 2.25% 3.50% 3.50%

20 to 24 3.25% 4.50% 4.50%

25+ 4.50% 4.50% 4.50%

Longevity Facts 84 employees will be coming into the new

organization with total salaries of $3,711,000

Average length of service of all employees is 13.2 years

75% of the employees will qualify for longevity under the proposed recommendation (more than five years of service)

12% of the employees will have greater than 20 years of service; 26% have greater than 15 years of service

Recommended Life Insurance

NWPCOG PTCOG Recommended

$30,000 $25,000 $30,000 *

* Retain the life insurance provision under the NC Local Governmental Employees’ Retirement System

Health Insurance The two COGs have significantly different

approaches to providing health insurance: PTCOG – traditional BCBS, premium based program,

good benefits, $500 employee deductible, $636 per month premium

NWPCOG – high deductible that is underwritten by an insurance reserve, $250 employee deductible, $433 per month premium

Staffs of two COGs have been working on health insurance and will very likely recommend the NWPCOG model be adopted

Current PTCOG COBRA employees WILL NOT be allowed to continue under new plan

Retiree Access to Health Insurance

Not addressed as a recommendation

Most state and local governments offer some type of free retiree health insurance or at least access to purchase

Neither PTCOG or NWPCOG offer retiree health insurance currently

Is a major gap in a competitive benefits package