AGENDA #4h

MEMORANDUM

TO:                  Mayor and Town Council

FROM:            W. Calvin Horton, Town Manager

SUBJECT:      Recommended Classification and Pay Changes

DATE:            June 26, 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 April 2006, representing studies completed in winter 2006.  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 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

All actions proposed 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.

• Changes in the organization of work in Town departments resulted in need for title changes or grade changes to reflect internal relationships which were changed by the departmental operating program changes. Some of the actions listed below were identified during the budget development process for FY 2006-2007.

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 the full fiscal year is shown. Sufficient funds have been identified in the department budget to cover the costs of these changes in 2006-2007.

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 2004-2005 budget year and the Traffic/Signs and Marking Program was transferred from Public Works to Engineering in November 2005 and is recommended for permanent transfer effective July 1, 2006.

These program changes have significantly expanded the scope and duties required in administration and management of the department. The Director of Engineering has assigned significant administrative and managerial duties and responsibilities to the position which is currently classified as Traffic Engineer. Based on these expanded duties, we recommend that the Traffic Engineer be reclassified from pay grade 42 to pay grade 44 and the title changed to Engineering Services Manager. The cost of the action proposed is $3,654 and the department has identified funds from the proposed budget to pay this cost.

Finance Department: Recent information obtained concerning the area labor market indicate that the current pay grade for the Purchasing and Contracts Manager is not competitive; we recommend that this position be reclassified from pay grade 40 to pay grade 42. No pay change is associated with this recommendation.

Public Works Department: The reorganization approved by the Council in June 2005 has resulted in the need to make some title changes, some of which are accompanied by pay grade changes to align internal relationships.

Title Changes: The Internal Services Superintendent is recommended for a title change to Sustainability and Facilities Management Superintendent. The Landscape Architect/Urban Forester is recommended for a title change to Special Projects Coordinator. The Fleet Supervisor is recommended for a title change to Fleet Manager. No changes in pay grade are recommended for this group of jobs.

Title Changes and Pay Grade Changes:  The Landscape Superintendent is recommended for a title change to Landscape and Grounds Superintendent, with a pay grade change from 43 to 44. The Solid Waste Services Superintendent is recommended for a title change to Solid Waste and Fleet Services Superintendent with a pay grade change from 43 to 44. These actions would mean that all Superintendents in this department would be classified at pay grade 44; this is supported by market data.

RECOMMENDATION

We recommend that the Council enact the attached ordinance to implement these changes effective June 26, 2006.