HomeMy WebLinkAbout11 Compensation Study Agenda Item
Public Utility District
Memorandum
To: Board of Directors
From: Peter Holzmeister
Date: August 9, 2006
Subject: Employee compensation study
Why this matter is before the Board: Thimatter involves be ng conducted by Koff &Ich Associates.the rdThis
wi
receive and discuss the employee compensationY
consultant reports directly to the Board, so this is a Board matter to decide.
History: Several months ago CATT suggested that the Board retain an outside consultant to conduct
a compensation survey. The idea was that an outside party with no vested interest in the outcome
would produce a study with more credibility than one conducted by District staff. This suggestion was
made at a time when the staff and Board were discussing the need to offer a compensation package
that would allow us to attract and retain a qualified work force.
The Board then circulated a Request For Proposal, interviewed three candidate firms and retained
Koff & Associates to conduct the study. An important part of the study was that staff (both union and
non-union) would have the opportunity for input and review of the study findings but Koff would be
independent of staff and would report
die staff for t Board. There to be would
dcrediblneed to be independence on
the part of the consultant and openness
e.
New information: Koff & Associates is now ready to present the study to the Board. Koff has
suggested that the study be presented in closed session based on the idea that the study now begins
the process of negotiation over compensation. Closed session discussion at this time may create in
the view of employees (and of CATT and the general public) that there is a reluctance to be open
about the findings. I think the Board needs to decide this matter.
It seems clear to me that there needs to be a discussion in closed session at some time to discuss
strategy for negotiating a new MOU with employees. Likewise, a closed session is appropriate when
discussing general issues related to compensation on non-union staff. But presentation of a factual
report may be a different discussion, one not appropriate for closed session.
If the Board asks Koff to make an initial presentation in open session, and then attend a second
meeting to discuss strategy in closed session, they may want additional compensation for an extra
meeting in Truckee.
Recommendation: I recommend that the Board decide whether the initial presentation of the
compensation study occur in closed session or in open session.