AGENDA #4f

MEMORANDUM

TO:                  Mayor and Town Council

FROM:            W. Calvin Horton, Town Manager

SUBJECT:      Recommended Classification and Pay Changes

DATE:            April 10, 2006

PURPOSE

Consistent with established practices, the purpose of this memorandum is to present recommended position classification grade and pay changes for selected Town positions.  We recommend enactment of the attached ordinance.

BACKGROUND

In prior years, the Town’s practice in job classification reviews was to conduct large-scale studies including all positions every three to four years, with little activity in the interim.  These studies, conducted by outside consulting firms, were costly and required considerable staff and employee resources to prepare new descriptions, interview employees and supervisors, and make recommendations.

In November 2003, we proposed and the Council authorized a new practice in which smaller groups of jobs are reviewed during the course of each year.  We have presented small groups for review on a regular basis since 2003.  The Council last reviewed and approved changes to a group of jobs in January 2006, representing studies completed in winter 2005.  The recommendations presented below are based on job classification reviews of selected Town positions completed in spring 2006.

We believe this practice of several cycles of review annually for selected positions is more effective and economical.  Reviewing smaller groups of jobs and making pay adjustments in shorter time frames smoothes out the costs (rather than requiring large lump-sum expenditures) and achieves more consistent pay equity within the organization and more competitive pay relationships with area organizations with whom the Town competes for employees.

We believe this approach improves recruitment and retention for Town jobs and produces higher quality and productivity of work performed.  We believe employee morale is enhanced when employees can expect that significant and permanent changes in their duties and requirements will be addressed in a timely way.

DISCUSSION

Criteria and Process for Job Reviews in Spring 2006 Cycle

The Human Resources Department conducted these job reviews in the spring 2006. Jobs were selected for review through discussion between each department head and the Human Resources Department.  Criteria for selection of a job for review was that either job duties, responsibilities or requirements had changed significantly and on a permanent basis and needed re-evaluation for level, title and/or pay grade or that the Human Resources Department had identified significant and continuing recruitment or retention difficulties in filling the job.

Job descriptions for selected positions were updated by the employee and supervisor and an independent analyst interviewed the employee, supervisor and department head to gather detailed information.  After analysis, recommendations for change to some of the jobs studied were presented to the Human Resources Director and recommended to the Manager.  The Manager then determined which changes would be recommended to the Council.

Recommendations for Grade or Title Changes

Of 12 positions reviewed, four are recommended for change. All are changes in title and/or pay grade. 

These recommendations are based on one or both of the following factors:

• Market information from pay surveys conducted by the Town Human Resources staff supports a change in pay grade for the position.

• Completion of a job review by an independent classification analyst with whom the Human Resources Department has contracted supports a change in pay grade, title or qualifications for the position based on duty changes and increased responsibilities which significantly affect the job requirements and are permanent in nature. Internal comparisons to other positions in the organization are also considered and changes proposed as needed to maintain equity.

For each position, we present information on the change proposed, the basis for the change, and whether a pay increase for the current employee(s) is recommended. If a pay change is proposed, the added cost for this fiscal year is shown.  If approved, these grade and/or title changes and pay adjustments would be implemented effective April 10, 2006.  Sufficient funds have been identified in the department budget to cover the costs of these changes.

The next cycle of job reviews will be completed in summer 2006 and we anticipate the next report to Council will be submitted in fall 2006.

Pay Grade and Title Changes Proposed

Engineering Department: The Engineering department has added two significant programs over the past two years; the Stormwater Management program and the Traffic/Signs and Marking program. The Stormwater Management program was initiated as a new program in the 2004-05 budget year and the Traffic/Signs and Marking program was transferred from Public Works to Engineering on a trial basis in November 2005 and is recommended for permanent transfer effective July 1, 2006.

These program changes have significantly expanded the scope and duties of the Administrative Assistant in the Engineering Department. Based on this expanded job role, we recommend that the Administrative Assistant position at pay grade 31 be changed to Office Manager I at pay grade 33 and that the employee receive a pay increase of one step. The cost of the action proposed is $1,780 and the department has identified funds from the current budget to fully cover this added cost. 

Fire Department: The duties and responsibilities of the Assistant Chief-Training in the Fire Department have been changed as a part of a reorganization of the senior command staff of the department. We recommend that the Assistant Chief-Training at pay grade 43 in the Fire Department be reclassified to pay grade 45 and that the employee receive a pay increase based on internal equity comparisons. The cost of the action proposed is $2,001 and the department has identified funds from the current budget to fully cover this added cost.

Finance Department: The organizational structure of the Finance Department has been changed to increase the effectiveness of the department. We recommend that the Assistant Finance Director at pay grade 46 be changed to Accounting Services Manager at pay grade 43 and that the Administrative Analyst position at pay grade 40 be changed to Financial Reporting Manager at pay grade 43. The department has identified funds from the reduction of the first position to cover the added cost of the change to the second position.

RECOMMENDATION

We recommend that the Council enact the attached ordinance to implement these changes effective April 10, 2006.