AGENDA #4k

MEMORANDUM

TO:                  Mayor and Town Council

FROM:            W. Calvin Horton, Town Manager

SUBJECT:       Recommended Position Classification and Pay Changes

DATE:             March 7, 2005

PURPOSE

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.  The Council last reviewed and approved changes to a group of jobs in October 2004, representing studies completed in summer 2004.  The recommendations presented below are based on job classification reviews of selected Town positions completed in winter 2004-05.

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 Fall/Winter 2004-05 Cycle

The Human Resources Department conducted these job reviews in the fall and winter of 2004-05.  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 the 29 job reviews completed in this cycle, changes are recommended in pay grade for two. One of the changes recommended also includes a title change. The third recommendation is solely to correct an administrative error.

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 March 8, 2005.  Sufficient funds have been identified in the current budget to fund these changes for the 2004-05 fiscal year.

The next cycle of job reviews will be completed in spring 2005 and we anticipate the next report to Council will be submitted in April 2005.

Pay Grade Changes Proposed

Office of Town Clerk

• The position of Deputy Town Clerk at pay grade 33 is recommended to be reclassified to pay grade 35, based on expanded duties and responsibilities. The change would include a 10 % pay adjustment for the current employee. Funds have been identified in the current Department budget to cover the added cost of $1,067 for fiscal year 2004-05.

Human Resources Department

• The position of Administrative Clerk at pay grade 28 is recommended to be reclassified to pay grade 30 with a title change to Human Resources Specialist I, based on expanded duties and labor market comparisons. The change would include a 5 % increase for the current employee. Funds have been identified in the current Department budget to cover the added cost of $915 for fiscal year 2004-05.

Public Works Department

• The position of Traffic Program Supervisor was approved by the Council to be restored to the Pay Plan and to the position allocation for the Department of Public Works, based on review and reorganization of that program. It was recommended to be restored at pay grade 37 in error; it had previously been classified at pay grade 39 and we recommend that this error be corrected. Pay grade 39 was confirmed as appropriate in the Town’s 2004 Pay Survey presented to the Council in January. There is no additional cost for this correction; the job is currently vacant and under recruitment.

RECOMMENDATION

We recommend that the Council enact the attached ordinance to implement these changes effective March 8, 2005.

AN ORDINANCE AMENDING THE POSITION CLASSIFICATION AND PAY PLAN FOR EMPLOYEES OF THE TOWN OF CHAPEL HILL, SUCH AMENDMENT TO BE EFFECTIVE MARCH 8, 2005 (2005-03-07/O-9)

BE IT ORDAINED by the Council of the Town of Chapel Hill that the following amendments are authorized effective March 8, 2005:

Section III

The assignments of the following positions are changed as noted:

Present Title	New Title	Number of Positions	Present Grade	New Grade
Deputy Town Clerk	No change	1	33	35
Administrative Clerk (Human Resources Department)	Human Resources Specialist I	1	28	30
Traffic Program Supervisor	No change	1	37	39

This the 7^th day of March, 2005.