State of Michigan
DEPARTMENT OF CIVIL SERVICE
Civil Service Commission Meeting
December 13, 2005
Present:
Susan Grimes Munsell, Chairperson
F. Thomas Lewand, Commissioner
James P. Pitz, Commissioner
Sherry L. McMillan, Commissioner
James D. Farrell, State Personnel Director
1.
CALL TO ORDER & APPROVAL OF MINUTES
The meeting of the Civil Service Commission was opened by Civil Service Commission Chairperson Susan Grimes Munsell at 10:05 a.m. in Conference Room A, Lower Level, Capitol Commons Center, 400 S. Pine Street, Lansing, Michigan. On motion duly made and supported, the Commission approved the minutes of September 13, 2005.
2.
AMENDMENTS TO AGENDA
Chairperson Munsell noted for the record that there were no amendments to the agenda.
3.
INFORMATIONAL REPORTS
a.
Director’s Report: The Commission received the following report from State Personnel Director James Farrell.
Unclassified Position Report
Civil Service Commission Rules require the State Personnel Director to report on the establishment or abolishment of positions in the state unclassified service. Department of Environmental Quality
The Michigan Department of Environmental Quality submitted a request dated November 9, 2005, to establish an exempt, unclassified position to serve as the Executive Office Assistant to the Director of the Office of Communications. The position of Regulatory Reform Specialist was abolished. The request was approved on November 15, 2005. Department of Attorney General
The Michigan Department of Attorney General submitted a request dated December 2, 2005, to establish an exempt, unclassified position to serve as the Director of Communications. Concurrently, one of the Special Assistant to the Attorney General positions was abolished. The request was approved on December 8, 2005. Compensation Rates
As previously authorized in letters of understanding approved by the Civil Service Commission for the AFSCME and UAW agreements, I approved compensation rates for extracurricular program services for 15 positions at the Michigan Schools for the Deaf and Blind for the 2005-2006 school year. Regulations Civil Service Commission Rules require that the State Personnel Director report to the Commission on the promulgation of regulations which are issued to further implement Commission rules. Regulation 4.10, Frozen Classifications and Positions
Effective: November 6, 2005 This regulation was amended to reflect the change in the code used in the Human Resources Management Network (HRMN) to signify that a position has been frozen. Additional minor revisions were also made to the Standards for clarification purposes. Premium Mileage Rate Reimbursement At the September 13, 2005, meeting, the Commission approved a temporary increase in the premium mileage reimbursement rate effective September 1, 2005, through December 31, 2005, to match the increase in the IRS-approved rate. The increase was from 40.5 cents per mile to 48.5 cents per mile. After December 31, no further action will be required by the Commission because the premium mileage reimbursement rate will automatically continue to track the IRS-approved rate under Civil Service Rule 5-7. Director Farrell noted that DMB has advised him that the IRS has subsequently set a new premium mileage rate effective January 1, 2006, of 44.5 cents per mile, and all departments have been notified of this change.
4.
UNFINISHED BUSINESS
Chairperson Munsell noted there was no unfinished business.
5.
NEW BUSINESS
Carol Vargovich, Budget & Financial Services Division, summarized the financial activity for the Department of Civil Service which included a summary of FY ’05, certification of the FY ’05 payroll of classified state service, appropriation adjustments to FY ’06, and the proposed budget for FY ’07. Ms. Vargovich requested Commission approval of the following three resolutions.
a.
Certification of Payroll - Fiscal Year 2005
Resolution 5a. requests that the Civil Service Commission, in fulfillment of the Constitutional requirement to certify the aggregate payroll of the classified service for the preceding fiscal year, certify a payroll of $4,170,347,000, as recorded in the state’s Michigan Administrative Information Network as of November 23, 2005, for the fiscal period October 1, 2004, to September 30, 2005. On motion duly made and supported, the Commission approved Resolution 5a.
b.
Budget Resolution – FY 2005-2006
Consistent with the Civil Service Commission’s constitutional authority, and recognizing the funding requirements for the MI-HR Service Center, employee economics, CSS&M reductions, and retirement/insurance rate savings, Resolution 5b. requests that the Commission decrease the previously approved FY ‘05-‘06 budget for the Department of Civil Service by $1,525,100. The State Personnel Director is authorized to take any action necessary to comply with the provisions of this Resolution so that the estimated revenues correspond with the estimated expenditures of the Department of Civil Service as specified for FY ‘05-‘06.
On motion duly made and supported, the Commission approved Resolution 5b.
c.
Budget – FY 2007
Resolution 5c. requests Civil Service Commission approval of the Fiscal Year ‘07 budget proposal for the Department of Civil Service totaling $37,141,600. On motion duly made and supported, the Commission approved Resolution 5c.
Matt Fedorchuk, Compensation Division, presented the recommendations contained in the proposed Coordinated Compensation Proposal (CCP) for FY ‘07 that was developed by the members of the Employment Relations Board, serving as the CCP Panel under Civil Service Rule 5-1.3. The Panel recommended Commission approval of the following for FY ‘07:
A 2 percent across-the-board pay increase effective October 1, 2006, and another 2 percent across-the-board pay increase effective April 8, 2007.
A special 25 cent per hour wage increase for Corrections Shift Supervisors 11, 12, and 13, and Corrections Security Inspectors 13 effective October 1, 2006.
A special 40 cent per hour wage increase for Assistant Resident Unit Supervisors 11 and Resident Unit Managers 13 effective October 1, 2006.
A retention bonus of $1,500 to be paid in December 2006 to employees in Pharmacist Manager 13 and 14 positions with five or more years of service on November 1, 2006.
Renewal of the Professional Development Fund for MSC employees at $150,000, and renewal of the Professional Development Fund for B & A unit employees at $50,000.
The Panel also recommended Commission approval of the following for FY ‘06:
Increase the annual dry cleaning allowance for Corrections Shift Supervisors 11, 12, and 13 and Corrections Security Inspectors 13 to $575.
Mr. Fedorchuk noted that the Commissioners’ briefing binders contain proposed changes to Civil Service Rule 5-7.3 that would be necessary to implement these proposals, and the CCP Panel requested that this rule be considered part of the report for the Commission’s approval. He commented that the Panel supports the good faith consensus agreement between the Office of the State Employer and MAGE on this issue, and noted that this reimbursement is consistent with the increase approved for MCO employees effective October 1, 2005. The Panel recommended denial of the following:
A special 10 percent increase for Pharmacist Managers 13 and 14 as recommended by Mr. Carey Abbott. The Panel found no evidence to suggest that an increase is warranted.
A special 37 percent increase for Financial Institution Examiners 9-12, Specialists 13-15, and Managers 13-15 as recommended by Ms. Rosalyn Butler. There was no evidence to suggest that an increase is warranted, although a special compensation study is being recommended.
A special 22 percent locality pay differential for select areas in Wayne and Oakland Counties as recommended by Ms. Rosalyn Butler. Based on the testimony, the Panel was not convinced of the need.
The extension of shift pay premium to all NEREs with 50 percent or more of their regularly scheduled work hours falling between 4:00 p.m. and 5:00 a.m. as recommended by Ms. Cheryl McAllister. The request was denied due to a lack of information and a clear understanding of the scope of the request at this time, but a special study is being requested by the Panel.
A $755 lifetime lasik/laser surgery benefit to NEREs as recommended by ASEM. According to the Office of the State Employer (OSE), this benefit was negotiated with only one bargaining unit as part of a complete agreement, including concessions. This benefit has not been in place long enough to determine whether it actually saves the state money.
The Michigan State Police Command Officers Association (MSPCOA) request to change the maximum overtime rate. The Panel has heard and rejected this request multiple times in the past, and no new evidence was presented that would indicate that it should be approved.
The Panel also proposed that the Commission:
Direct the DCS, with input from the OSE and the Department of Labor and Economic Growth (DLEG), to conduct a study of the compensation for the Financial Institution Examiner/Specialist/Manager class series and other similar class series in DLEG. The study should include a salary survey of employers performing similar responsibilities in Michigan and other states. The study should be completed in 2006, and a report of findings presented to the Panel prior to completion of the 2006 CCP proceedings for FY ‘08.
Direct the DCS, with input from the OSE and the affected departments, to conduct a study of shift differential eligibility. The study should involve a historical overview of the subject, an analysis of the number of positions assigned to second and third shifts and their associated eligibility for shift differential, a comparison of practices in other states, and any other relevant information. The study should be completed in 2006, and a report of findings presented to the Panel prior to completion of the 2006 CCP proceedings for FY ‘08.
Take no action on the issue of a lump sum award of up to $500 for all employees in the performance pay program who receive a satisfactory rating for FY ‘05/’06 as recommended by ASEM. Civil Service rules and regulations regarding performance pay have not changed, and lump sum bonuses are still allowed; however, the Administration’s policy directs departments that report to the Governor not to award such bonuses at this time.
Take no action on the issue of the MSPCOA request to change the rate at which State Police lieutenants earn compensatory time. Civil Service Regulations allow appointing authorities to adopt formalized comp time plans. Accordingly, this issue would best be decided by the Michigan Department of State Police rather than the CCP Panel.
Take no action on the issue of the ASEM request to change the “in lieu of” mileage reimbursement rate for employees who use their own vehicles for state business. Effective March 1998, the Commission approved a resolution removing the travel reimbursement-setting recommendation process from the CCP, and designated it to be handled by the Director of the Department of Management and Budget and the State Personnel Director.
Mr. Fedorchuk also presented a table summarizing the known costs and savings contained in the proposals being recommended for approval by the Commission. He noted that the Panel weighed a number of factors in deciding to support the proposals presented to the Commission. While keeping in mind the State’s financial condition, the Panel considered the compensation received by exclusively represented employees through the collective bargaining process, and recognizes the need for equity for non-exclusively represented employees. The Panel also noted and continues to respect, the good faith consensus agreement reached between OSE and labor relations organizations. On motion duly made and supported, the Commission approved Agenda Item 5d.
e.
Unclassified Pay Recommendations – FY 2007
Matt Fedorchuk presented staff’s proposal for the annual Unclassified Pay Recommendation required under Article XI, Section 5 of the Michigan Constitution. A survey of department director salaries in large states was conducted by staff, and information on Michigan county official and university president salaries was compiled. The salary levels of Michigan elected officials and classified deputy department directors was also reported. Based on a review of the data, staff requested Commission approval and transmission of the following recommendations to the Governor and the Legislature for FY ‘07.
A two percent merit salary increase effective October 1, 2006, and a two percent merit salary increase effective April 8, 2007.
Legislative approval of line-item funding necessary to support these recommendations.
On motion duly made and supported, the Commission approved Agenda Item 5e.
f.
Interagency Memorandum of Understanding (MOU) between the Department of Civil Service and the Department of Management and Budget: Retiree Group Insurance Benefits in the State Employees, State Police, and Judicial Retirement Systems
Dan McLellan, General Counsel for the Commission, presented information and staff recommendations on the following MOU. The Civil Service Commission and the Director of the Department of Management and Budget jointly determine the health benefits for retirees under the retirement statutes for state employees, state police, and judges. On September 30, 2005, interim approval of the MOU was granted by the Commission Chairperson and State Personnel Director authorizing the following changes in retiree benefits. Effective November 1, 2005, for retirees enrolled in the State Health Plan PPO and the State Dental Plan:
Add Drug Management Program
Add CuraScript Program for Specialty Drugs
Add Voluntary Zero Dollar Copay Program for Generic Drugs
Add Brush Biopsy Benefit (for oral cancer screening)
Effective January 1, 2006, for retirees in the State Health Plan PPO:
Increase maximum for preventive services from $750 to $1,500 and allow for colonoscopy to be covered and not applied toward the annual maximum cap.
Increase the annual number of physical, occupational, and speech therapy visits from 60 to 90.
On motion duly made and supported, the Commission confirmed the interim approval granted and approved Agenda Item 5f. Commissioner Pitz abstained from the vote.
g.
Letter of Understanding to Amend the Michigan Department of State Police-UAW Secondary Agreement: Bumping for the Administrative Support and Human Services Units
This Letter of Understanding amends the secondary collective bargaining agreement to address seniority bumping rights between full-time and less than full-time employees in the Administrative Support and Human Services Units. On motion duly made and supported, the Commission confirmed the interim approval granted by the Commission Chairperson and State Personnel Director on November 8, 2005, and approved Agenda Item 5g. Commissioner Lewand abstained from the vote.
h.
Letter of Understanding to Amend Department of Corrections-AFSCME Council 25 Secondary Agreement: Yearly Uniform Shirt Exchange for Food Service Employees
This Letter of Understanding amends the secondary collective bargaining agreement to increase the yearly uniform shirt exchange from five shirts to seven for food service employees. On motion duly made and supported, the Commission approved Agenda Item 5h.
i.
Approval of Department of Education-AFSCME Secondary Agreement
The Department of Education and AFSCME Council 25 reached agreement on a new secondary collective bargaining agreement for the Institutional Unit. Upon motion duly made and supported, the Commission approved Agenda Item 5i. Commissioner McMillan abstained from the vote.
j.
Letters of Understanding to the Office of the State Employer-Union Primary Agreements: Optional Coverage (Voluntary Benefits) Program
General Counsel McLellan noted that under Civil Service Commission Rules, an Optional Coverage (Voluntary Benefits) Program has been initiated by the State Personnel Director for non-represented employees. This program provides various insurance options and other services which are paid for 100 percent by the employee. There is no participation from the state, other than allowing employees to use the payroll deduction program to pay for these optional programs. The eight Letters of Understanding will amend all of the current primary collective bargaining agreements to allow unionized employees to participate in the Optional Coverage Program on the same basis as the non-represented employees. Upon motion duly made and supported, the Commission approved Agenda Item 5j.
6.
PUBLIC COMMENT
Andre Friedlis, representing the Association of State Employees in Management (ASEM) made the following comments and requests. CCP Recommendations: Mr. Friedlis noted that ASEM participated in the CCP meeting, but was not provided with a copy of the CCP recommendations prior to the Commission meeting. He requested that the Commission instruct the CCP Panel to provide a copy of their recommendations to all participants prior to the December Commission meeting each year to allow labor relations organizations adequate time to review and discuss the recommendations with their members. Lasik Surgery: Mr. Friedlis acknowledged that this benefit was negotiated with only one union, and that ASEM has made this request for many years; however, the benefit would be for all state employees, not just ASEM members. He asked the Commission to set a timetable for the review and determination of benefit to the state. Chairperson Grimes Munsell commented that the Commission would consider these requests.
ADJOURNMENT
There being no further items for Commission approval or public comments to be heard, Chairperson Munsell adjourned the meeting at 10:40 a.m.
NOTE
Copies of any written statements, reports, or staff proposals which were presented to the Commission may be obtained by contacting the Department of Civil Service, Executive Office, Capitol Commons Center, Lansing, Michigan. (517-373-3020)
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