DAR File No. 27973

Capitol Preservation Board (State), Administration

R131-5

Board Review, Compensation and Incentive Award Process

NOTICE OF CHANGE IN PROPOSED RULE

DAR File No.: 27973
Filed: 09/26/2005, 01:55
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

The Board received several public comments that suggested we reconsider some of the language and to make it compatible with the Department of Human Resource Management's (DHRM) Rules R477-6 and R477-10. The Board agreed and this change in proposed rule reflects those changes.

Summary of the rule or change:

Subsection R131-5-9 1(b) was changed to reflect DHRM's policy and procedures regarding compensation and incentive awards. (DAR NOTE: This change in proposed rule has been filed to make additional changes to a proposed new rule that was published in the June 15, 2005, issue of the Utah State Bulletin, on page 9. Underlining in the rule below indicates text that has been added since the publication of the proposed rule mentioned above; strike-out indicates text that has been deleted. You must view the change in proposed rule and the proposed new rule together to understand all of the changes that will be enforceable should the agency make this rule effective.)

State statutory or constitutional authorization for this rule:

Section 63C-9-401

Anticipated cost or savings to:

the state budget:

Costs, when awarded, will be available from existing budgets.

local governments:

The actions of the Capitol Preservation Board do not affect local government. Therefore, there is no anticipated cost or savings to local government.

other persons:

The actions of the Capitol Preservation Board do not affect other persons. Therefore, there is no anticipated cost or savings to other persons.

Compliance costs for affected persons:

The action of the Capitol Preservation Board does not affect compliance costs for affected persons.

Comments by the department head on the fiscal impact the rule may have on businesses:

The action of the Capitol Preservation Board does not affect businesses. David Hart, AIA, Executive Director

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Direct questions regarding this rule to:

Sarah Whitney or David H. Hart at the above address, by phone at 801-538-3074 or 801-538-3074, by FAX at 801-538-3221 or 801-538-3221, or by Internet E-mail at swhitney@utah.gov or dhart@utah.gov

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

11/14/2005

This rule may become effective on:

11/15/2005

Authorized by:

David H. Hart, AIA, Executive Director

RULE TEXT

R131. Capitol Preservation Board (State), Administration.

R131-5. Board Review, Compensation and Incentive Award Process.

R131-5-1. Purpose.

Pursuant to Section 63C-9-401, Utah Code, which provides [that ]the Board shall appoint an executive director to assist them, this rule defines the [b]Board's review, compensation and bonus procedure for the executive director and staff.

R131-5-2. Authority.

This rule is authorized by Subsection 63C-9-301 and 63C-9-401, Utah Code, directing the Board to make rules to govern, administer and regulate the executive director and staff.

R131-5-3. Definitions.

(1) "Board" or "CPB" means Capitol Preservation Board as provided for in Section 63-9-101, et seq., Utah Code.

(2) DHRM means the Division of Human Resource Management within the Utah Department of Administrative Services.

R131-5-4. Authority of the Board.

(1) The [Capitol Preservation ]Board is the authorizing agent to approve, by majority vote of members present, incentive and bonus awards, and compensation amount(s)[, incentive and bonus awards]for staff as recommended by the [E]executive [D]director and the Budget Development and Board Operations Subcommittee[ for staff].

(2) The Board shall be the sole approving authority, and shall sanction appropriate awards in accordance with these rules.

R131-5-5. Performance Review of Executive Director.

(1) The Board's Budget Development and Board Operations Subcommittee [of the Board ]shall oversee a performance evaluation review of the [E]executive [D]director of the Board.

(2) This review shall be conducted by an appointed performance review panel of three members of the subcommittee and shall be comprised of one member from the executive branch, one from the house and one from the senate. The chair of the subcommittee shall designate members of the panel.

(3) Pursuant to Sections 63C-9-401 and 402, Utah Code, the panel shall review the work-plan as developed by the [E]executive [D]director and approved by the Board. The panel shall [then ]meet with the [E]executive [D]director to review [his]the executive director's performance, to include the following:

(a) day[]-to[]-day activities and functions of the office and staff under [his]the executive director's direction;

(b) management and oversight of ongoing construction projects under [his]the executive director's direction;

(c) fiduciary management of funds appropriated, earned or donated to the [b]Board for the management of the office, upkeep of [c]Capitol [h]Hill, and restoration or construction of projects [with in]within the responsibilities of the Board;

(d) personal and working relationships which have been developed with the members of the Board as well as groups associated with Capitol Hill;

(e) other assignments, functions, or responsibilities [that ]the panel finds a need to discuss.

[(2)](4) The review shall take place in a timely manner, at least annually, and prior to [the first of July]July 1 of each year.

R131-5-6. Performance Review of Staff.

(1) The [E]executive [D]director shall define performance standards for each staff person under [his]the executive director's supervision, evaluate their performance, and make recommendations to the Budget Development and Board Operations [Sub-Committee]Subcommittee. The Board shall review the recommendations and [pass as to ]give final approval.

(2) In accordance with [rule ]Section R477-10, Utah Administrative Code, the [E]executive [D]director shall implement the following general performance methodology for each staff employee:

(a) An employee performance plan shall be developed by August 30 of each fiscal year, or in the case of a new employee, within 60-days of the hiring-date, whichever is later;

(b) Employees shall be provided with periodic verbal and written feedback based on the standards of performance and conduct outlined in the performance plan.

(c) Each employee shall be informed concerning the actions to be taken, time frames, and the supervisor's role in providing assistance to improve performance and increase the value of service.

(3) The [E]executive [D]director shall implement the following performance management rating system by August 30 to be effective for the fiscal year:

TABLE

        Rating               Score

     Exceptional               3

     Highly Successful         2.5

     Successful                2

     Marginal                  1

     Unsuccessful              0

[ Exceptional = 3, Highly Successful = 2.5, Successful = 2,

Marginal = 1, Unsuccessful = 0

] (4) Each employee shall receive a performance evaluation effective on or before the beginning of the first pay period of each fiscal year. A new employee shall receive a performance evaluation at the end of a 6-month probationary period and again prior to the beginning of the first pay period of the fiscal year.

(5) The employee shall sign the evaluation. Signing the evaluation only means that the employee has reviewed the evaluation. Refusal to sign the evaluation shall constitute insubordination, subject to discipline.

(6) The evaluation form shall include a space for the employee's comments. Each employee shall have the right to include written comment(s) to be placed in [his/her]the employee's file, to accompany the written performance evaluation as provided by the [E]executive [D]director. The employee may comment in writing, either in the space provided or on separately attached pages.

R131-5-7. Performance Review and Compensation.

(1) Classification, evaluation, and compensation of the [E]executive [D]director and staff shall be consistent with DHRM policies and procedures. The [E]executive [D]director shall consult with DHRM to develop recommendations for staff job-descriptions and standards.

(2) Upon receipt of the [E]executive [D]director's recommendations for changes in master plans, work plans, compensation, bonuses or adjustments, the Budget Development and Board Operations Subcommittee shall present its recommendations to the Board no later than [it's]its regularly scheduled September meeting.

(3) Upon the Board's approval of the Budget Development and Board Operations Subcommittee's recommendations, the [E]executive [D]director will prepare a final "Budget/Planning Request" to be presented to the Governor and the Legislature.

R131-5-8. Incentive Awards for the CPB Staff.

(1) The Board's [E]executive [D]director shall follow the provisions of DHRM's policy when granting [I]incentive and [B]bonus [A]awards, as contained in [rule ]R477-6-5, Utah Administrative Code; and hereby adopts and incorporates it by reference within this rule.

(2) When the [E]executive [D]director has approved the issuance of an [I]incentive or [B]bonus [A]award, and such action has been approved by the Board, the award shall be issued within 30-days.

R131-5-9. Incentive Awards for the Executive Director of the Board.

(1) Based on particular or unusual circumstances, the Board may approve and grant [to ]the [E]executive [D]director incentive or bonus awards. Incentive and bonus awards are discretionary, without entitlement, and are subject to the availability of funds. The Board shall issue award(s) that accord with the following parameters:

(a) Awarded amounts may be paid either directly, or if requested by the executive [D]director, into a 401(k) program approved by the Utah Retirement System.

(b) [An i]Individual awards [for a single effort, ]shall not exceed $4,000 per occurrence and $8,000 [in a ]per fiscal year.

(c) All cash incentive and bonus awards shall be subject to payroll taxes.

(2) Performance Based Incentive Award:

(a) Cash Incentive Award: The Board may grant a cash incentive award if:

(i) Exceptional effort or accomplishment is demonstrated, beyond normal job expectations over a sustained period of time.

(ii) A cash award approved by the Board shall be documented with a copy maintained in the [E]executive [D]director's employee file.

(b) Noncash Incentive Award: The Board may recognize its appreciation for the executive director's performance with noncash incentive awards.

(i) Individual noncash incentive awards shall not exceed a value of $50 per occurrence and $200 for each fiscal year.

(ii) Noncash incentive awards may not include cash equivalents such as gift certificates or tickets for admission.

(3) Cost-Savings Bonus: The Board may encourage increased productivity of the executive director when, through [his]the executive director's action, cost savings are generated within a particular restoration or construction segment of the project,

(a) The Budget Development and Board Operations Subcommittee shall document the pertinent cost savings in their recommendation for the award.

(b) Amounts shall be for exceptional performance and circumstances, and may exceed limits stated in [rule Sub-Section] R477-6-5(1)(c), Utah Administrative Code, and R131-5-9-(b) when approved by the Board.

(4) Market Based Bonus:

The Board may extend a cash bonus to the executive director as an incentive for [him]the executive director to obtain or retain an employee who possesses unusual job skills that are critical to the state and difficult to recruit in the marketplace.

(a) Retention Bonus:

The Board may pay a bonus to a current employee, to recognize usual or unique qualifications that are essential for the agency to retain.

(b) Recruitment or Signing Bonus:

The Board may pay a recruitment bonus to a qualified job candidate to convince the candidate to accept the position.[ being recruited for.]

(c) Scarce Skills Bonus:

The Board may pay a bonus to a qualified job candidate that has unusual and scarce skills which are essential for the job.

(d) Relocation Bonus:

The Board may pay a bonus to a current employee, or a new employee, for relocation, including relocation to a different commuting area.

(e) Referral Bonus:

The Board may pay a bonus to an employee who refers a job applicant who is subsequently selected and completes successful [employed]employment for at least six months.

KEY: bonuses, reviews, compensation

2005

63C-9-401

ADDITIONAL INFORMATION

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For questions regarding the content or application of this rule, please contact Sarah Whitney or David H. Hart at the above address, by phone at 801-538-3074 or 801-538-3074, by FAX at 801-538-3221 or 801-538-3221, or by Internet E-mail at swhitney@utah.gov or dhart@utah.gov

For questions about the rulemaking process, please contact the Division of Administrative Rules (801-538-3764). Please Note: The Division of Administrative Rules is NOT able to answer questions about the content or application of these administrative rules.