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Home My WebLink About(CM1) Port Arthur Final Presentation Evergreen Solutions Inc. - v3 (2)EVERGREEN SOLUTIONS, LLC PORT ARTHUR, TX COMPENSATION, CLASSIFICATION & BENEFITS STUDY Rob Williamson, Project Manager September 2025 AGENDA 01 Study Goals 02 Internal Review 03 External Review 04 Recommendations 05 Next Steps 06 Questions STUDY GOALS Internal Review Review current classification and compensation system to ensure internal equity (Fair) •Assessment of Current Conditions •Employee Outreach •Job Assessments (JAT) External Review Survey peer organizations to ensure external equity (Competitive) •Market Survey •Benefits Survey Recommendations Produce recommendations to provide Port Arthur, TX with a system that is equitable, both internally and externally INTERNAL REVIEW ASSESSMENT OF CURRENT CONDITIONS •Salary schedule with 85 pay grades •222 classifications representing approximately 450 employees included in the study •Average published range spreads of 24% (distance between minimum starting rate and maximum earning rate): •Step plan with 10 steps and varied progression based on tenure before and after reaching the midpoint of the range. Rapid movement up to step 5, then movement every three years. •Longevity pay and other supplemental pays are provided based on varied criteria. •Employees reaching the maximum of Port Arthur ranges are only approaching the midpoint of the market. Compensation Plan INTERNAL REVIEW ASSESSMENT OF CURRENT CONDITIONS Q1 Tenure (0- 4.5 yrs.)35%Q2 Tenure (4.5-9 yrs.)20% Q3 Tenure (9-13.5 yrs.)14% Q4 Tenure (13.5-18 yrs.)10%Beyond 18 yrs 21% Salary & Tenure Distribution •The average tenure for included employees is 10.76 years; median is 7.5 years. •56.6 % of employees compensated below the midpoint of their pay ranges. •26 employees are compensated above the published maximum. •Tenure does tend to increase throughout pay range quartiles (breaking pay ranges into 4 equal parts) •Current step plan is 10 steps w/2.5% between steps. •After employees reach the midpoint, step progression slows to one step every three years. INTERNAL REVIEW EMPLOYEE OUTREACH -FOCUS GROUPS & EMPLOYEE SURVEY Why Port Arthur? •Community impact, stability and type of work •Compensation and benefits / retirement •Hours and schedule •Peer relationships Areas of Concern •COLA’s and salary increases are inconsistent and have not kept up with inflation or local market •Pay plan should be evaluated for internal equity •Job titles and job descriptions should be updated to accurately reflect current roles Top Employee Considerations •Adjust compensation structure to be fair; standardize progression. •Align pay according to job functions; •Evaluate staffing levels; and •Offer competitive compensation in relation to market peers. INTERNAL REVIEW Job Assessment Tool (JAT) Job Assessment Tool allows for a better understanding of each position and its relative level within the organization. Data collected in the JAT is used to inform pay grade assignments relative to positions’ scope of responsibilities in the organization. Classifications Response: Employee Participation: Leadership Working Conditions Complexity Decision Making Relationships Factors Reviewed in JAT Analysis: # Of Employee Surveys Complete # Of Employee Surveys Incomplete # Of Supervisor Reviews Complete # Of Supervisor Reviews Incomplete 71.46%28.54%40.23%59.77% Supervisor SummaryEmployee Summary # of Classifications with a JAT # of Classifications without a JAT 86.05%13.95% Classification Summary EXTERNAL REVIEW •Check for competitive compensation by comparing Port Arthur positions with market peers •Identify and address any inconsistencies or disparities in pay across similar positions •Compare core benefit offerings to market peers and identify any competitive disadvantages. Purpose of Market Survey •For peers outside the region, data was adjusted for cost of living. •Provides the ability to align the proposed compensation system with the cost of living in the Port Arthur area. Cost of Living Factor Market Survey Goals EXTERNAL REVIEW National Economic Forces and shifts in post-election Policy Priorities will continuetoimpactPublicSectorLaborMarket •Most recent Dept. of Labor report shows wages still increasing slightly, hiring slowing significantly and inflation decreasing but remaining “sticky” placing continued pressure on employee earnings.Market now only forecasting 1 Fed rate cut for remainder of 2025. (September .25% forecasted) •Dept of Labor -Year over year wage increases averaging >3% (May 2025). More than 28% of Americans are searching for new jobs –highest rate in 10 years. Pool of applicants for Public Sector increasing slightly with Federal reduction in workforce. •Consumer price inflation rose 2.7% between May 2024 and May 2025 down from peak inflation of 9% in June 2022. *March 2.7% and April 2.4% EXTERNAL REVIEW 2.6 4.8 4.6 4.7 4.1 1.4 7.5 6.4 3.1 2.7 0 1 2 3 4 5 6 7 8 2021 2022 2023 2024 2025 Wages State & Local Gov’t w/ Annual CPI -Inflation U.S. Bureau of Labor Statistics CPI Linear (Wages) EXTERNAL REVIEW Bryan, TX Rosenberg, TX Port Neches, TX San Marcos, TX Pearland, TX Conroe, TX League City, TX Pasadena, TX Coppell, TX La Porte, TX Austin, TX Baytown, TX Beaumont, TX Economic Research Institute (ERI) Galveston, TX Lewisville, TX Missouri City, TX Mont Belvieu, TX Lake Charles, LA Jefferson County, TX Peers that provided data highlighted in bold and underlined. Approved Target Market Peers EXTERNAL REVIEW Summary of Metrics Number of Market Peers 20 Number of Respondents 13 Percentage Received 65% Number of Port Arthur Positions Included 125 Positions with Limited Matches (<4)34 Percentage of Positions with Sufficient Data for Inclusion 72% (90 of 125) Total Quality Matches 574 Average Match Count 7 EXTERNAL REVIEW PA is competitive at the minimum starting salaries of the published pay ranges. Due to smaller range spreads than market peers, (24 vs 48) PA is less competitive toward the maximum of the published range. Overall, PA is within the top 5 in relation to selected market peers at pay range minimums. Market Results Average Average Average ACCOUNTANT I $55,586.04 $70,386.54 $84,669.88 47.1%9 ADMINISTRATIVE ASSISTANT $41,228.10 $49,594.20 $59,995.35 50.4%11 ADMINISTRATIVE CLERK I $36,328.09 $44,041.07 $50,920.93 50.1%5 ADMINISTRATIVE SECRETARY $43,632.95 $54,215.57 $61,588.53 50.2%6 ADMINISTRATIVE SUPPORT SUPERVISOR $48,282.05 $58,639.81 $69,405.50 42.6%5 ANIMAL CONTROL OFFICER $40,144.59 $45,951.27 $54,916.05 37.7%12 ANIMAL CONTROL SUPERVISOR $52,831.46 $66,095.74 $81,235.65 49.2%10 ASSISTANT CITY ATTORNEY I $86,645.16 $111,508.82 $135,496.41 54.9%7 ASSISTANT CITY MANAGER/ADMINISTRATION $142,528.33 $172,524.81 $208,124.48 49.8%7 ASSISTANT CITY SECRETARY $61,383.66 $78,435.44 $95,487.23 51.2%7 ASSISTANT DIRECTOR OF FINANCE $103,123.80 $131,482.80 $159,841.81 57.2%6 ASSISTANT DIRECTOR OF HUMAN RESOURCES $75,276.36 $98,050.31 $122,977.16 61.9%4 ASSISTANT DIRECTOR OF UTILITY $91,140.19 $116,203.75 $141,267.30 56.5%4 ASSITANT CITY MANAGER/OPERATIONS $143,235.99 $177,664.77 $212,093.56 52.5%4 ASST DIRECTOR OF UTILITY OPERA $90,156.97 $110,434.64 $130,712.31 53.4%4 BUDGET AND COMPLIANCE ANALYST $51,063.24 $62,699.43 $76,065.77 48.5%6 BUILDING INSPECTOR I $48,016.86 $59,212.67 $70,297.95 47.8%9 BUILDING OFFICIAL $90,049.14 $105,272.50 $124,488.49 47.8%10 BUSINESS ANALYST I $55,952.17 $71,339.02 $86,725.87 50.1%4 CASHIER $37,870.55 $47,559.04 $54,862.28 38.9%5 CHIEF OF POLICE $129,911.17 $164,293.82 $204,529.98 60.7%8 CIP PROJECT ENGINEER $84,299.06 $108,007.87 $131,716.68 54.0%4 CITY ATTORNEY $132,980.64 $169,550.04 $209,906.89 57.8%4 CITY MANAGER $170,877.95 $201,342.89 $242,325.81 50.2%5 CITY SECRETARY $95,018.28 $115,613.47 $148,458.95 74.2%7 # Resp.Classification Survey Minimum Survey Midpoint Survey Maximum Survey Avg Range EXTERNAL REVIEW Market Results Cont’d Average Average Average CODE ENFORCEMENT MANAGER $61,760.19 $75,991.36 $90,222.53 50.8%6 COMPLIANCE OFFICER $51,760.00 $66,792.35 $84,798.70 52.2%9 CONSTRUCTION SPECIALIST $37,545.60 $46,648.89 $56,992.00 51.7%5 CONTROLLER $87,259.59 $109,339.05 $133,128.48 58.2%7 COORD POLICE/FIRE SUPPORT SVC $67,828.45 $84,785.36 $101,742.27 56.7%4 COURT CLERK $47,591.63 $62,343.37 $77,095.12 54.5%7 CUSTODIAN $33,312.70 $41,534.59 $49,756.49 46.9%7 CUSTOMER SERVICE SPECIALIST $32,512.68 $38,675.34 $46,461.96 39.6%6 DEPUTY MUNICIPAL COURT CLERK $37,422.53 $46,967.98 $56,570.31 54.1%7 DEVELOPMENT SERVICES MANAGER $81,080.51 $100,453.27 $119,779.10 54.7%7 DIRECTOR OF FINANCE $130,777.00 $149,598.68 $187,419.85 52.9%9 DIRECTOR OF HUMAN RESOURCES $110,125.42 $138,898.06 $169,815.35 34.2%7 DIRECTOR OF LIBRARY $101,247.13 $129,748.51 $155,906.72 48.7%5 DIRECTOR OF PARKS & RECREATION $109,428.36 $137,396.88 $167,516.42 54.3%6 DIRECTOR OF PUBLIC WORKS $131,327.91 $159,818.82 $194,996.07 -32.5%8 DRAINAGE SUPERINTENDENT $61,579.51 $81,986.51 $98,383.30 42.5%4 ELECTRICIAN I $48,016.86 $58,546.64 $69,545.19 41.1%5 ELIGIBILITY/BILLING CLERK $36,088.28 $45,761.60 $54,349.65 51.3%5 ENGINEER I $67,568.43 $82,583.84 $100,396.04 42.6%5 ENVIRONMENTAL HEALTH INSPECTOR I $41,769.99 $52,272.47 $64,275.83 52.4%5 EQUIPMENT MECHANIC I $41,965.96 $53,260.76 $63,577.90 46.0%7 EQUIPMENT OPERATOR I $51,383.70 $60,164.91 $68,946.12 45.8%8 EQUIPMENT SERVICE MANAGER $82,126.58 $102,656.87 $123,187.15 52.3%4 EQUIPMENT SERVICE SUPERVISOR $58,364.39 $81,457.12 $98,450.87 61.3%5 EQUIPMENT SERVICES WORKER $41,738.70 $51,702.68 $62,442.50 47.4%6 EVIDENCE TECHNICIAN $39,051.50 $48,609.27 $58,381.16 51.3%7 EXECUTIVE SECRETARY $48,786.01 $66,792.35 $84,798.70 58.1%5 FACILITIES MAINTENANCE SUPERVISOR $55,646.49 $69,845.01 $83,569.82 47.6%8 FACILITIES MAINTENANCE WORKER $36,650.61 $46,494.38 $56,042.57 50.8%10 GIS COORDINATOR $64,457.12 $80,908.76 $97,398.33 53.1%6 GRANTS MANAGER $58,166.74 $73,123.91 $88,813.01 52.9%7 HOUSING INSPECTOR I $48,103.38 $58,055.01 $68,718.18 45.7%5 # Resp.Classification Survey Minimum Survey Midpoint Survey Maximum Survey Avg Range EXTERNAL REVIEW Market Results Cont’d Average Average Average HR TRAINING & DEVELOPMENT COOR $64,771.63 $72,781.16 $89,074.61 41.4%5 HUMAN RESOURCES ANALYST $56,889.15 $71,787.41 $86,605.31 50.4%4 IT DEPARTMENT DIRECTOR $105,556.11 $135,993.17 $166,430.22 52.9%6 IT SUPPORT SPECIALIST $46,158.61 $55,741.93 $67,977.05 49.7%9 KENNEL TECHNICIAN $31,309.40 $38,293.20 $45,780.81 48.2%8 LEGAL SECRETARY $43,552.85 $56,543.52 $68,338.44 49.3%5 LIBRARIAN I $47,874.12 $59,966.24 $72,927.30 50.1%5 LIBRARY ASSISTANT $38,663.05 $46,822.49 $56,279.93 37.5%7 MAINTENANCE CREW SUPERVISOR $57,203.07 $69,388.73 $83,775.01 53.4%6 MAINTENANCE WORKER I $36,130.28 $42,641.67 $51,158.24 49.8%9 METER SERVICE WORKER $37,262.67 $43,814.58 $52,968.98 39.8%8 NETWORK INFRASTRUCTURE/SECURIT $69,634.19 $85,301.88 $100,969.56 51.6%5 PAYROLL ANALYST $41,390.60 $52,077.79 $63,627.95 51.0%5 PERMIT TECHNICIAN I $38,188.15 $47,280.70 $56,330.62 52.7%7 PLANT MECHANIC $37,623.17 $47,027.83 $56,432.49 49.3%5 PLUMBING INSPECTOR $46,533.19 $58,663.53 $70,793.88 54.1%4 POLICE AIDE $34,834.43 $43,394.94 $52,658.32 46.6%5 POLICE RECORDS SUPERVISOR $52,485.35 $60,656.07 $73,816.29 36.0%8 PUBLIC INFORMATION OFFICER $84,954.41 $112,372.49 $136,452.30 56.1%6 PURCHASING MANAGER $68,852.31 $88,453.97 $109,472.49 56.1%7 RECREATION COORDINATOR $43,328.96 $54,540.47 $65,984.94 47.7%8 RECREATION TECHNICIAN I $35,876.37 $44,839.55 $53,856.53 46.8%7 SANITATION CREW SUPERVISOR $47,429.71 $57,958.72 $70,915.80 48.6%4 SENIOR PLANNER $66,979.67 $82,515.50 $98,051.32 50.8%7 SIGNS AND SIGNAL TECH $40,489.15 $51,244.47 $60,355.54 51.8%6 STREETS SUPERINTENDENT $73,031.75 $89,912.70 $108,997.31 49.7%8 SYSTEM ADMINISTRATOR I $67,761.06 $88,605.84 $107,916.42 56.7%7 TELECOMMUNICATION OFFICER I $43,708.60 $55,380.79 $64,368.47 42.7%7 TREATMENT PLANT OPERATOR I $41,565.45 $51,699.14 $62,293.59 45.6%8 TREATMENT PLANT SUPERINTENDENT $75,766.13 $95,498.50 $115,230.87 47.2%8 UTILITY ACCOUNT CLERK $45,039.95 $53,260.76 $63,577.90 37.4%7 UTILITY OPERATIONS MANAGER $77,072.60 $96,604.30 $116,136.00 52.1%6 UTILITY SERVICE REPRESENTATIVE $39,083.40 $47,752.49 $58,070.00 46.3%7 WEBSITE/DIGITAL CONTENT MGR $53,477.00 $68,429.99 $83,382.97 54.1%4 Overall Average @ 75th percentile 12.2%1.1%-6.2%48.2%7 # Resp.Classification Survey Minimum Survey Midpoint Survey Maximum Survey Avg Range EXTERNAL REVIEW Overall Market Average Port Arthur’s published pay range is competitive when compared to the market minimum. Due to the narrow range spread, PA market competitiveness erodes. Average Average Average 24% vs. 48%Overall Average @ 50th percentile 17.9%8.2%2.9% 24% vs. 48%Overall Average @ 75th percentile 12.2%1.1%-6.2% 48% vs. 48%Overall Average @ 75th percentile 12.2%12.1%11.1% Port Arthur Pay Range Spread vs. Market Classification Survey Minimum Survey Midpoint Survey Maximum Benefits Review Summary Advantages:•Tuition reimbursement leads the market $3k vs $1750•Retirement is consistent with market for vesting and contribution.•Paid Time Off accrual annual rollover. Disadvantages:•PA lags the market slightly for PPO Health Plan individual and family coverages. •Life Insurance death benefit lags the market $25k vs $7500•EAP visits lag the market 5.9 vs 4.•Paid holidays lag the market slightly (12.1 vs 11) *Overall benefits offerings seem to be consistent with market. KEY CONSIDERATIONS •Evergreen does not recommend the reduction of individual employee salaries. •Implementation first aligns positions with pay ranges based on several factors: current internal equity, JAT employee survey, the market response and project team review/feedback. •Employees are placed equitably into new pay ranges based on job classification and methodology calculation, not personalities or performance. •Improve Benefits to create advantage in the market. •Staffing Study to maximize resource allocation. KEY RECOMMENDATIONS Adopt the new 21 step pay plan w/ 1.5% each step, 48% pay range & annual progression Assign all classifications to pay grades based on internal and external equity Implement new plan 1.1.26 using the Modified Bring to Market implementation methodology RECOMMENDATIONS Implementation Methods and Estimated Costs for 1/1/26 Implementation Option Total - Base Salary Cost % of Payroll Bring to Market $315,810.14 1.1% Modified Bring to Market Bring to Min +1 Step: Employees over current Mid or Employees under Mid and Tenure >9 years $721,947.96 2.4% RECOMMENDATIONS Proposed Classification StructureAdopt the proposed new compensation structure. Reassign all job classifications to pay grades based on internal equity and the market results. Select an implementation methodology that aligns with the compensation philosophy and financial means of the City. Place employees within their newly recommended pay grades based on selected implementation methodology. *Evergreen Recommends Modified Bring to Market RECOMMENDATIONS Implementation Date of 1.1.26 – Conduct annual small scale market surveys Conduct classification and compensation studies every 3-5 years Review compensation guidelines annually –revise as needed NEXT STEP Deliver Final Report HR Director Job Force Manager Training QUESTIONS ROB WILLIAMSON EVERGREEN SOLUTIONS, LLC 2528 Barrington Circle, Suite 2 Tallahassee, Florida 32308