AGENDA #8

memorandum

to:Mayor and Town Council

from:W. Calvin Horton, Town Manager

subject:Proposed Composition of the Committee to Review the Town Pay Plan

date:September 27, 2005

Adoption of the attached resolution would establish the composition of the Committee to Review the Town Pay Plan.

BACKGROUND

During the Budget Work Session on June 15, 2005, the Council requested that the Town Manager prepare a recommendation for the establishment of a citizens’ committee to review the Town Pay Plan in fall of 2005.  The Council adopted a resolution on June 27, 2005.

As requested by the Council, the Town Clerk invited members of the Personnel Appeals Committee and former Budget Review Advisory Committee to apply for appointment without resubmission of an application form.  As individuals responded, the Clerk’s office retrieved the original application from the files on hand. 

DISCUSSION

The Town’s current pay plan was established in 1999.  The plan was developed by Town staff, employees, the Council and a consultant in response to the goals and objectives established 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 a living wage level 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). 

Pay Plan Advisory Committee Charge and Composition

The Council established the following charge for the Committee: 

• Review the current Town pay plan;
• Evaluate the total compensation plan;
• Conduct a thorough review of how the current pay plan was developed;
• Evaluate the plan for:
  • An orderly job progression ladder,
  • Sufficient salary for the lowest paid employees,
  • Prevention of salary compression,
  • Comparability and competitiveness with area local government plans,
  • And other pertinent issues.
• Compare the Town pay plan to other local governments in the Triangle and other major private and public employers in the area;
• Make recommendations to the Council on possible changes to the Town’s pay plan.
• Make these recommendations simple and easy to understand.

Composition

In addition to Town employees, we recommend that the Council consider appointing members with professional experience in human resources management.  We recommend that the Council consider a committee of three to four members selected from the group of Town employees who applied and six to seven members selected from the applications of citizens. The Human Resources Director will provide staff support to the committee.

NEXT STEPS

Below we outline the potential next steps for the Committee with completion of a report for Council review by early January 2006.

Date	Actions
September 26, 2005	Establishment of Committee
September 27-November 2, 2005	At least four meetings to review the current pay plan and prepare a report
January 9, 2006	Report submitted to Council
January 9- March 22, 2006	Period for Council consideration,  employee review and comments, including Public Forums on the budget

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 (2005-09-26/R-15)

WHEREAS, the Council desires to reexamine the Town pay plan; and

WHEREAS, the Council would like to have a committee of citizens and employees from the Employee Forum examine the current plan and 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 establishes this committee with three to four Town employees and six to seven citizens.

BE IT FURTHER RESOLVED that the Council hereby makes appointment to the committee that would:

• Review the current Town pay plan;
• Evaluate the total compensation plan;
• Conduct a thorough review of how the current pay plan was developed;
• Evaluate the plan for:
  • An orderly job progression ladder,
  • Sufficient salary for the lowest paid employees,
  • Prevention of salary compression,
  • Comparability and competitiveness with area local government plans,
  • And other pertinent issues.
• Compare the Town pay plan to other local governments in the Triangle and other major private and public employers in the area;
• Make recommendations to the Council on possible changes to the Town’s pay plan.
• Make these recommendations simple and easy to understand.

BE IT FURTHER RESOLVED that a schedule be established as follows:

Date	Actions
September 26, 2005	Establishment of Committee
September 27-November 2, 2005	At least four meetings to review the current pay plan and prepare a report
January 9, 2006	Report submitted to Council
January 9- March 22, 2006	Period for Council consideration, employee review and comments, including Public Forums on the budget

This the 26^th day of September, 2005.