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May 17, 2005 Commission Minutes

State of Michigan
DEPARTMENT OF CIVIL SERVICE
Civil Service Commission Meeting
May 17, 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
The meeting of the Civil Service Commission was opened by Civil Service Commission Chairperson Susan Grimes Munsell at 10:00 a.m. in Conference Room A, Lower Level, Capitol Commons Center, 400 S. Pine Street, Lansing, Michigan.

Chairperson Munsell noted that Commissioner Pitz was unable to join the Commission in person, but would be participating in the meeting via conference phone.

On motion duly made and supported, the Commission approved the minutes of December 15, 2004.

2. AMENDMENTS TO AGENDA
Chairperson Munsell noted for the record that there were no amendments to the agenda.

3. INFORMATIONAL REPORTS
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 unclassified service since the last Commission meeting on December 15, 2004.

The Department of Information Technology submitted a request dated January 19, 2005, to establish an exempt, unclassified position to serve as the Public Affairs Advisor. The request was approved on January 21, 2005.

The Department of Attorney General submitted a request dated February 15, 2005, to establish an exempt, unclassified position to serve as the Director of Constituent Relations. The position of Director of Public Affairs was abolished. The request was approved on February 28, 2005.

The Department of Attorney General submitted a request dated April 25, 2005, to establish an exempt, unclassified position to serve as the Director of Public Affairs. The position of Director of External Communications was abolished. The request was approved on April 27, 2005.

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. Since the December 15, 2004, Commission meeting the following regulations were revised and reissued:

Regulation 5.01, General Salary Schedule Administration
Effective: February 27, 2005


The regulation has been amended to include minor word changes, for clarification purposes only, as well as the addition of item 4 to Standard F, Salary Upon Personnel Action Other Than New Hire, RIF, or Recall, to address personnel actions involving movement within the same classification and level to a new pay grade (e.g., Services Specialists and some State Police Lieutenant classifications). In addition, it has been determined that the language in Standard D.2., Teacher Salary Schedules, is necessary and, therefore, remains in place.

Regulation 5.02, Premium Payment of Overtime, On-Call Compensation, and Call-
back Compensation

Effective: October 24, 2004 and March 27, 2005


Effective October 24, 2004, the regulation had a minor revision to reflect the change in the highest eligible employee rate resulting from the general wage increase effective October 1, 2004.

Effective March 27, 2005, the word "accumulation" was added to the section in the regulation regarding scheduling of compensatory time.

Regulation 5.04, Special Pay Premiums
Effective: March 27, 2005


The regulation incorporates a new standard (J) and an additional number (6) in the procedure to address necessary action when an employee becomes ineligible for P-rate compensation.

Regulation 5.07, Performance-Pay Programs
Effective: March 27, 2005


The regulation contains minor word deletions and changes to Standards regarding Performance-Pay and Salary Upon New Hire or Promotion to a Performance-Pay Position in ECP Groups 1, 2, 3, or 4.

Regulation 5.08, Paid Holidays
Effective: March 27, 2005


The regulation contains minor changes to incorporate the Civil Service Commission approval of an Election Day holiday.

Regulation 5.09, Annual, Personal, and School & Community Participation Leave
Effective: March 27, 2005


The regulation contains minor changes to the Annual Leave Standard (A) (2)(f) and (5) to incorporate the Commission's approval that increases the annual leave maximum accumulation cap at each level by 40 hours, while leaving payoff caps the same. This standard also has new language that clarifies that an employee may not receive any annual leave payoff when moved from one state department to another as a result of an executive reorganization.

Regulation 5.13, Disability Payment for Duty-Incurred Injuries
Effective: March 27, 2005


In the regulation, the standard for Supplemental Pay contains a minor change to reflect that approvals and extensions for supplemental duty-disabled pay go to the director of the Employee Health Management Division rather than the director of Employee Benefits.

Statewide Health Plan Dependent Audit

Director Farrell noted that with the support and participation of the Office of the State Employer, the department began a dependent audit of all employees who have been identified as covering a dependent under one or more of the State of Michigan's group insurance plans. The purpose of the audit is to validate that all dependents currently covered by employees meet the eligibility criteria. During Phase I, state employees voluntarily removed ineligible dependents which resulted in savings of $1.3 million. Phase II of the audit began on March 18, 2005, with an audit of all affected Department of Civil Service employees. All state agencies will roll out the dependent audit to their affected employees in the next several months.

HR Optimization

Director Farrell updated the Commission on progress of Phase II of the HR Optimization project currently underway. The department continues to meet with human resource directors and the Office of the State Employer to identify additional opportunities to enhance efficiencies and reduce costs by streamlining human resource processes, and potentially centralizing a number of human resource programs and processes within the MI HR Service Center or other appropriate areas.

Huron Valley Center Restructuring

A March 18, 2005, request from the Department of Community Health (DCH) was approved to place on departmental recall lists the names of 50 non-exclusively represented employees (NERES) who were displaced as a result of the organizational changes to the Huron Valley Center, and the resulting establishment of the Huron Valley Complex in the Department of Corrections (DOC). NERE employees will be placed on departmental recall lists only, not on statewide recall lists. All remaining provisions of Civil Service Rule 3-2.3 apply to the recall of these employees. Approval of this request provides equitable treatment to both NEREs and represented employees.

4. UNFINISHED BUSINESS
Chairperson Munsell noted there was no unfinished business.

5. NEW BUSINESS
a. Department of Civil Service Budget Reduction
Carol Vargovich, Budget and Financial Services Division, presented a Resolution for Commission approval concerning a reduction in the Civil Service Budget. Ms. Vargovich noted that the reduction is in response to the Governor's Executive Order 2005-7, which was issued subsequent to the Commission's approval of the FY '04-'05 budget for the Department of Civil Service. The resolution requested a general fund reduction of $229,300 in the department's FY '04-'05 budget.

The State Personnel Director is authorized to take any action necessary to implement the provisions of this resolution so that Department of Civil Service expenditures are reduced as specified for FY '04-'05.

On motion duly made and supported, the Commission approved Resolution 5a.

b. This agenda item concerning Travel Reimbursement Rates for FY '06 was deferred to the next Commission meeting at the request of DMB.

c. Dan McLellan, General Council for the Commission, presented information and staff recommendations on the following seven Letters of Understanding which had received interim approval by State Personnel Director Farrell and Chairperson Munsell, and are now before the Commission for approval.

(1) Amendments to the OSE-MSEA Primary CBAs - Safety & Regulatory Unit and Labor & Trades Unit
The amendments are corrections to the CBAs originally submitted by the parties and approved by the Civil Service Commission on December 15, 2004. Corrections were as follows: increase the administrative leave bank to 4,176 hours annually, plus an additional 1,560 hours for the current year for both units; add a new Article 13, Assignment and Transfer, for the Labor & Trades Unit that was accidentally omitted from the CBA; add a letter of understanding (for both units) regarding the voluntary work schedule adjustment program that was previously omitted from the CBA.

(2) Letter of Understanding for the OSE-MPE, SEIU Local 517M Primary CBAs - Scientific & Engineering and Human Services Support Units

These two letters of understanding increase the cap on annual leave accumulations to be consistent with the cap increases approved in all other CBAs for NEREs.

(3) Letter of Understanding for the OSE-AFSCME Primary CBA

This letter of understanding allows bargaining unit members to donate annual leave credits to other bargaining unit members facing financial hardship.

(4) Letter of Understanding for the OSE-MCO Primary CBA - Security Unit

This letter of understanding for the Michigan Corrections Organization creates a one-time training rate for Forensic Security Aides who transfer from the Department of Community Health to the Department of Corrections in Corrections Officer 8 positions due to the reorganization of the Huron Valley Center.

(5) Letters of Understanding for all Primary CBAs (excluding State Police Unit)

These letters of understanding advance the effective date of the disease management program and a PPO network for durable medical equipment and prosthetic and orthotic devices from October 1, 2005, to April 1, 2005.
(6) Letter of Understanding for the OSE-AFSCME Primary CBA - Institutional Unit

This letter of understanding increases the maximum number of hours a temporary non-career employee (State Worker 4 classification) may work in the Department of Natural Resources from 720 hours to 1,040 hours.

(7) Amendments of the OSE-MSEA Primary CBA - Safety & Regulatory and Labor & Trades Units

These amendments are corrections to the CBAs originally submitted by the parties and approved by the Commission on December 15, 2004. The corrections are as follows: Under Article 5., increase the number of courses eligible for reimbursement in any one semester from one course to two courses; in Appendix B (Safety & Regulatory Unit), make six classes overtime eligible; letter of understanding for State Worker 4, provide special treatment for these temporary non-career employees; letter of understanding for the Flexible Compensation Plan, which continues the stored value debit card program offered by the State's health spending account administrator.

On motion duly made and supported, the Commission confirmed the interim approvals granted for 5c.-1 through 5c.-7.

For the record, Commissioner Lewand noted that it was his understanding that any comments received from either the unions, NEREs, or Office of the State Employer have been incorporated in these changes, Dan McLellan confirmed this understanding.

(8) Amendment to the FY '05 NERE Compensation Plan

Dan McLellan noted that this is the same plan that the Commission approved for all the unions-advancing the effective date of the disease management program and the PPO network for durable medical equipment and prosthetic and orthotic devices from October 1, 2005, to April 1, 2005.

On motion duly made and supported, the Commission confirmed the interim approval granted for 5c.-8.

(9) Amendments to the OSE-UAW Primary CBA - Administrative Support Unit

This letter of understanding permits the State Police Criminal Justice Information Center to hire up to 20 temporary employees (in the State Worker 4 classification) to be paid $10.04 for up to 2,080 hours, unless extended by the parties. Staff proposes, and the unions and the Office of the State Employer have no objections to, a clarification in their letter of understanding that if all parties agree to extend the duration of the appointments beyond 2,080 hours, the increase would require the consent of the Commission.

On motion duly made and supported, the Commission confirmed the interim approval granted for 5c.-9.

(10) Letters of Understanding to the OSE-UAW and OSE-MPE, SEIU Local 517M Primary Agreements - Scientific & Engineering Unit

At the December 15, 2004, meeting, the Commission approved an effective date of October 1, 2005, for the optional signing bonus program for registered nurses and pharmacists. These letters of understanding would advance the effective date to May 17, 2005.

On motion duly made and supported, the Commission approved 5c.-10.

(11) Amendments to Rule 5-6.11, Signing Bonus

This amendment advances the effective date of the optional signing bonus program for pharmacist managers and excluded dentists from October 1, 2005, to May 17, 2005.

On motion duly made and supported, the Commission approved 5c.-11.

Chairperson Munsell noted that Items 5c.-12 through 5c.-15 will be addressed as a single motion.

(12) Letter of Understanding to the OSE-UAW Primary Agreement - Huron Valley Center

This letter of understanding establishes a special transfer list for UAW-represented employees in the Department of Community Health affected by the reorganization of the Huron Valley Center.

(13) Letter of Understanding to the DCH-MCO Secondary Agreement - Huron Valley Center

The letter of understanding provides vacancy and recall provisions for MCO-represented employees in the DCH affected by the reorganization of the Huron Valley Center.

(14) Letter of Understanding to Amend the DCH-AFSCME Secondary Agreement - Huron Valley Center

This letter of understanding establishes special recall provisions for AFSCME members affected by the reorganization of the Huron Valley Center.

(15) Letter of Understanding to Amend the OSE-MPE, SEIU Local 517
(Scientific & Engineering Unit) Primary Agreement - Emerald Ash Borer Program


The letter of understanding provides for special recall provisions to Department of Agriculture employees who do not accept reassignments as the result of the restructuring of the Emerald Ash Borer Program.

Upon motion duly made and supported, the Commission approved 5c.-12 through 5c.-15.

d. Approval of Secondary Collective Bargaining Agreements

The Office of the State Employer submitted the following secondary collective bargaining agreements between the OSE and the following exclusive representatives for Commission review and approval:
  • 13 for the Michigan State Employees Association (MSEA)
  • 17 for the International Union, United Automobile, Aerospace, & Agricultural Implement Workers of America (UAW )
  • 2 for the American Federation of State, County, and Municipal Employees (AFSCME), Council 25
Mr. McLellan noted there are two secondary agreements out for ratification by members at this time, and four secondary agreements are currently at impasse.

Commissioner Lewand asked whether the secondary agreements that are at impasse should be reported on at today's meeting. Mr. McLellan responded that the Employment Relations Board (ERB) hearings are not scheduled until June, so it would be premature to report on them today. He commented that the parties are continuing to negotiate, and some may be settled prior to the ERB meeting, but the Board will issue a report and recommendation on those remaining secondary agreements shortly after they meet.

On motion duly made and supported, the Commission approved 5d.

e.

Military Leaves of Absence: Amendments to Rules 2-14, 8-1, 8-2, and 9-1

Dan McLellan noted several reasons for the need to amend the Civil Service Rules governing the rights and benefits of employees absent from the classified service due to military service. Among these are:

  • Inconsistencies and overlap between the federal Uniformed Services Employment and Re-employment Rights Act (USERRA) of 1994 and Civil Service Rules.

  • Unclear interpretation of the four types of military leaves that are provided for in the Civil Service Rules.

  • Antiquity of the Civil Service Rules adopted shortly after the Commission was initially approved in 1945 which benefited employees who were drafted into military service, but does not apply to our largely voluntary military forces of today.
The staff proposal would completely revise the affected Civil Service Rules & Regulations to remedy these interpretation problems and provide the same rights and benefits to classified employees that they receive under USERRA. This analog set of rules and regulations concerning military leaves will enable employees who have these rights to utilize the Civil Service grievance process, in addition to some supplemental provisions under existing Civil Service Rules. (Note: The regulations do not require Commission approval.)

David Fink, Director, Office of the State Employer, thanked the Commission and Commission staff on behalf of the Governor for addressing this important issue. He commented that in at least one instance, he felt these inconsistencies unintentionally punished volunteerism. Mr. Fink indicated the Governor's and his support for this proposal, as well as the proposed amendments to the Veterans' Preference Rules.

On motion duly made and supported, the Commission approved 5e.

f. Veterans' Preference: Amendments to Rules 2-14 and 3-8

Dan McLellan indicated that the current Veterans' Preference Rule has also been around for many years for veterans and certain veterans' spouses. The rule gave either five or ten points on the Civil Service examinations. With the modernization of Civil Service assessment systems and elimination of many exams, the effectiveness of a point preference has been reduced. The amendment to Rule 3-8 would add two new options:
  • Keep the current exam point preference for those cases where Civil Service exams result in ranking candidates who pass the exam.

  • In the event there is no Civil Service ranked numerical exam, appointing authorities who use a screening test for their applicants would give a five or ten percent point preference, similar to the current system for Civil Service exams.

  • If neither of the first two options is applicable because of a lack of testing or screening scores that can be increased with a point preference, there would be a candidate pool guarantee for the eligible veterans and veterans' spouses.
Staff believe this proposal is a considerable benefit that rewards veterans and veterans' spouses in important ways in trying to get jobs in state government, while at the same time remaining consistent with the basic merit principles of the Constitution.

On motion duly made and supported, the Commission approved 5f.

g. Expense Reimbursement: Amendments to Rule 5-7

Dan McLellan reminded the Commission that in 1999 they approved the use of the Internal Revenue Service (IRS) mileage reimbursement rate as the state's "premium mileage rate" (when the employee has prior approval to use a private vehicle or when a state vehicle is unavailable). The state premium rate adjusts automatically when changed by the IRS. Although this provision was implemented by the Commission and Department of Management and Budget, this change was never incorporated into the applicable Civil Service Rule. The proposal formally amends Rule 5-7.1 to incorporate these directions.

On motion duly made and supported, the Commission approved 5g.

h. Group Insurance Plans: Amendments to Rules 5-11 and 9-1

Mr. McLellan reviewed the proposed amendments to Rule 5-11 governing group insurance plans and Rule 9-1, Definitions. The amendments would provide for the following:
  • Expansion of the definition of group insurance benefits to be more inclusive as part of the process of reviewing employment benefits and group insurance benefits and providing a better complaint process for employees.

  • Authorization of appeals by employees to the Commission on benefit complaints.

On motion duly made and supported, the Commission approved 5h.

6. PUBLIC COMMENT
Chairperson Munsell noted there were no further requests for public comment.

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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