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October 27, 2003 Page 276 The Board of Commissioners for the County of Cabarrus met in recessed session in the dining hall at Camp Spencer, 3155 Foxford Road, Concord, North Carolina, on Monday, October 27, 2003, at 6:30 p.m. Present - Chairman: Robert M. Freeman Vice Chairman: Richard D. Suggs Commissioners: Carolyn B. Carpenter Robert W. Carruth Coy C. Privette Also present were John D. Day, County Manager; Fletcher L. Hartsell, Jr., County Attorney; Pam Dubois, Finance Director; Mike Downs, Public Safety Services Director; Jim Cook, Social Services Director; Steve Little, Parks and Recreation Director; Don Cummings, Human Resources Director; and Frankie F. Bonds, Clerk to the Board. Chairman Freeman called the meeting to order at 6:35 p.m. Commissioner Privette gave the invocation. Closed Session UPON MOTION of Commissioner Privette, seconded by Commissioner Carruth and unanimously carried, the Board moved to go into Closed Session to discuss a personnel matter and to consult with the Attorney regarding pending or threatened litigation as authorized by North Carolina General Statute (NCGS) 143-318.11(a) (3) (6). UPON MOTION of Commissioner Carpenter, seconded by Commissioner Carruth and unanimously carried, the Board moved to come out of the Closed Session. No action was reported from the Closed Session. Personnel Management Policy Mr. Cummings reviewed the Personnel Management Programs established in 1994 that included the following: (1) Annual cost of living allowance (COLA) review and adjustment, based on the Consumer Price Index (CPI) of the previous calendar year; (2) A salary study every two years to compare County salaries for like jobs in surrounding areas and with similar government entities; (3) A 401K benefit to all employees; and (4) Merit, based on performance, and career development pay plans. He stated the programs have worked well for the County, providing a sense of uniformity and consistency for employees. Further, Mr. Cummings reviewed Appendix G (Development and Merit Increase Administration Guide) of the Cabarrus County Personnel Ordinance. He explained an employee could receive development increases ranging from 1.5 percent to 8.5 percent based on the annual performance evaluation. However, after a~ employee attains job rate at Level 31, the maximum merit increase that he/she is eligible to receive is only two percent. Mr. Cummings presented a proposal to eliminate the development and merit plans and create a single merit plan for all employees. Merit pay increases would range from 0.5 percent to 5 percent based on an employee's annual performance evaluation. Mr. Day reminded the Board of action taken in January 2003 to freeze all development and merit increases for FY 2003-2004. He recommended that the merit program as presented by Mr. Cummings be effective July 1, 2004. The Board discussed the amount of the increase that an employee could receive during one year. Mr. Cummings explained that salary changes could occur as a result of the following: Category Promotion Reclassification Classification & Compensation Study Cost of Living (COLA) Performance (Annual Evaluation) Interim Assignment Percent Increase 5 % 5 % 5 % 1.0% - 3.0% 0.5% - 8.5% 5.0% - 20.0% There was discussion concerning a possible cap on the amount of annual increases, incentives for certifications and the need for cross training of employees. Commissioner Privette introduced discussion about County paid health and life insurance for employees qualifying for retirement as a member of the