AGENDA #15
TO: Mayor and Town Council
FROM: W. Calvin Horton, Town Manager
SUBJECT: Establishment of a Committee to Review the Town Pay Plan
DATE: June 27, 2005
Adoption of the attached resolution would establish a Committee to review the Town Pay Plan.
BACKGROUND
During the Budget Work Session on June 15, 2005, the Council requested that the Manager prepare a recommendation for the establishment of a citizens’ committee to review the Town Pay Plan in fall of 2005. The Council’s discussion was abbreviated and we recognize that this report may not capture the Council’s intent.
DISCUSSION
The Town’s current pay plan was established in 1999. The plan was developed by a consultant in response to the goals and objectives of the pay plan recommended by the Council. Town employees and the Council had considerable input in the process. The consultant reviewed the pay plan then in place and revised it in order to have an orderly job progression ladder, provide for sufficient salary for the lowest paid employees, and prevent salary compression which was resulting in new hires receiving equal or greater compensation than employees with longer periods of service with the Town. One element of the plan was the establishment of 3.78% steps.
Pay Plan Advisory Committee Charge and Composition
The Council expressed the desire to have a committee of citizens reexamine the pay plan. We understand that the Council would want the Committee to review the plan for the same principles of equity that were used in the current plan:
In addition to citizens who served on the Budget Review Advisory Committee, we recommend that the Council consider appointing members with considerable experience in human resources management, such as the members of the Personnel Appeals Committee. We recommend that the Council consider a committee with seven to ten members.
PROCESS
We recommend that the process for consideration of changes to the Pay Plan include opportunities for employees to offer feedback and suggestions.
NEXT STEPS
Below we outline the next steps that would result in appointment of a Committee by September 26 with completion of a report for Council review by early January, 2006.
|
Date |
Step to be Taken |
|
June 27, 2005 |
Authorize solicitation of applicants |
|
September 12, 2005 |
Nominations |
|
September 26, 2005 |
Establishment of Committee |
|
September 27 – December 31, 2005 |
At least 5 meetings to review the current pay plan and to make recommendations. |
|
Early January, 2006 |
Presentation of pay plan proposals to the Council. |
RECOMMENDATION
We recommend that the Council adopt the attached resolution.
A RESOLUTION TO ESTABLISH THE CHARGE FOR AND COMPOSITION OF A PAY PLAN ADVISORY COMMITTEE (2005-06-27/R-28)
WHEREAS, the Council desires to reexamine the Town pay plan; and
WHEREAS, the Council would like to have a committee of citizens examine the current plan, compare it with other local government plans while preserving the principles of fairness that were the basis of the current plan;
NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council hereby authorizes the Manager to seek applicants for appointment to a committee that would:
· Review the current Town pay plan;
· Evaluate the plan for:
o An orderly job progression ladder,
o Sufficient salary for the lowest paid employees,
o Prevention of salary compression,
o Comparability and competitiveness with area local government plans,
· Compare the Town pay plan to other local governments in the Triangle and similar communities elsewhere and
· Make recommendations to the Council on possible changes to the Town’s pay plan.
BE IT FURTHER RESOLVED that a schedule be established as follows:
|
Date |
Step to be Taken |
|
September 26, 2005 |
Establishment of Committee |
|
September 27 – December 31, 2005 |
At least 5 meetings to review the current pay plan and to make recommendations. |
|
Early January, 2006 |
Presentation of pay plan proposals to the Council. |
This the 27th day of June, 2005.