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HomeMy WebLinkAboutPR 15680: ACTION PLAN FOR CITY'S CLASSIFICATION & PAY PLANCity of Port Arthur Memorandum TO: Stephen B. Fitzgibbons, City Manager DATE: is/z8/o9 FROM: Dr. Albert T. Thigpen, IPMA-CP, Director of Human Resources and Civil Svc. RE: P. R. No. 15680 A RESOLUTION AUTHORIZING AN ACTION PLAN FOR ADJUSTMENTS TO THE CITY OF PORT ARTHUR CLASSIFICATION AND PAY PLAN COMMENT RECOMMENDATION: It is recommended. that the City Council adopt P. R. No. 15680 which authorizes the City Manager and the Director of Human Resources to implement an Action Plan for adjustments to the City of Port Arthur Classification and Pay Plan. BACKGROUND: The essential soundness and market placement of the City's Plan was validated by the analysis of The Waters Consulting Group, Inc. The issues of wage compression and the Step. S freeze remain as concerns; further, "the aggressive" nature of the existing plan [e.g. Step 5 is reached in 2.5 years, Step 10 in 4.5 years] serves to exacerbate the foregoing issues. The fiscal inability of the City to lift the Step 5 freeze [imposed on the Plan to facilitate its implementation] since its inception has further increased the number of employees "frozen" at Step 5. The Step 5 "Freeze" is not a plan component, but rather an exterior constraint which allowed the implementation of the Plen circa 1986. Although, examined annually since implementation, fiscal conditions have prohibited the lifting of the "Freeze". The City Council has clearly indicated its desire that something be done to address this situation. Based on discussions with the Consultant, and additional review, the writer has recommended that employees who are at Steps 5 - 9 as of October 01, 2009 be advanced one (1) step for each five (5) years they have been at Steps 5 - 9. This would directly address those employees who have been most severely irripacted by the "Freeze". As noted by Waters Consulting Group, the discrete. interval between steps [2.5%] has been impacted as time has elapsed due to the application of various increases; thus, the interval varies between steps. The aggressive nature of the City's existing Wage and Compensation Plan was referenced as well as some of the negative impacts which have resulted from the fiscal inability to fully implement the plan (i.e. allow step movement to Step 10). An indicator of the aggressive plan nature is the "topping" out (i.e. reaching Step 10) within 4.5 years of hiring. Potentially, this could be a "dis- incentive" for optimal performance after a period of time with no future increases apparent. The. fiscal impact of employees reaching Step 5; thus being frozen, in 2.5 years has already been discussed. The recommendation would be to continue to allow step movement from Step 1 to Step 2 after 6 (six) months; then step movement from Step 2 to Step 4 annually would moderate progress to Step 5 and prevent the "bottle neck" effect currently occurring. After Step 5 step movement would occur every three (3) years. As discussed, this would incentivize employees without creating a substantial fiscal burden for the City. Eventually, this would eliminate individuals being "frozen" at Step 5. Of course, this is a long term solution; however, in as much it follows the recommendation to address employees who have been frozen at Step 5 for a significant: period of time, the overall impact would be highly positive. ~~ It is anticipated the impact on individuals currently in step movement would occur after reaching Step 5. While not an absolutely perfect solution, the foregoing recommendation will in a reasonable. period of time achieve further salary equity along with maintaining market parity. New employees would immediately fall under the modified plan upon its implementation. BUDGETARY/FISCAL EFFECT: Approval of P. R. No. 15680 which authorizes the City Manager and the Director of Human Resources to implement an action plan for adjustments to the City of Port Arthur Classification and Pay Plan would initially result in an expenditure of approximately $ 226,000. Funding is available in each departments budget for this purpose. EMPLOYEE/STAFF EFFECT: None anticipated. SUMMARY: It is recommended that the .City Council-adopt P. R. No. 15680 which authorizes the City Manager and the Director of Human Resources to implement an action plan for adjustments to the City of Port Arthur Classification and Pay Plan. P. R. 15680 12/23/09 -- ATT RESOLUTION NUMBER A RESOLUTION AUTHORIZING AN ACTION PLAN FOR ADNSTMENTS TO THE CITY OF PORT ARTHUR CLASSIFICATION AND PAY PLAN WHEREAS, the City Council of the City of Port Arthur deems its most valuable resource to be the employees thereof; and, WHEREAS, the City Council has implemented a Classification and Pay Plan [the Plan] to "...insure that each job is paid at a rate appropriate for the level and type of work performed in relation to other positions in the City and to the City's competitive labor market."; and, WHEREAS, the City of Port Arthur Classification and Pay Plan has been the subject of on-going internal review and has recently undergone independent external review regazding mazket competitiveness and structural soundness; and, WHEREAS, the result of the latter review indicated the Plan to be mazket competitive and structurally sound, but in need of adjustments to address Council concerns and Plan equity ;and WHEREAS, the Director of Human Resources has presented to the City Manager a plan to provide for the referenced adjustments which is presented in summary form hereby as Attachment `A"; and, WHEREAS, the City Manager has approved the presentation of said plan to the City Council for authorization; now; therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR: P. R. 15680 12/23/09 -- ATT THAT the City Council of the City of Port Arthur hereby authorizes the adjustments to the City's Classification and Pay Plan as delineated in Attachment "A" hereto; and, THAT the City Manager and the Director of Human Resources aze hereby authorized to do all things necessary to effectuate the recommended adjustments; and, THAT a copy of the caption of this Resolution be spread upon the minutes of the City Council. READ, ADOPTED AND APPROVED this day of A.D., 2010 at a Regular Meeting of the City Council of the City of Port Arthur, Texas by the following vote: AYES: MAYOR COUNCILMEMBERS NOES: HON. DELORIS "BOBBIE" PRINCE MAYOR ATTEST: TERRI HANKS CITY SECRETARY P. R. 15680 12/23/09 -- ATT APPROVED AS TO FORM: ~~z ~" VALECIA TIZEN ,ESQ. ACTING~CITY ATTORNEY APPROVED AS TO ADMINISTRATION: D B T T. THIGPEN, MA- P .DIRECTOR OF HUMAN RESOURCES STEPHEN B. FITZGIBBONS CITY MANAGER APPROVED AS TO AVAILABILITY OF FUNDS: DEBORAH ECHOES, CPA DIRECTOR OF FINANCE ATTAC~IlVIENT "A" P. R. 15680 12/23/09 - ATT SUMMARY OF ADJUSTMENTS TO THE CITY OF PORT CLASSIFICATION AND PAY PLAN Phase I Step 5 Freeze Adiustment All employees of the City of Port Arthur who have been at Steps 5 - 9 of the Classification and Pay Plan for their classification on October O1, 2009 will be advanced one (1) step for each five (5) years the employee has been at Steps 5 - 9. Phase II Classification and Pav Plan Step Interval Adiustment The City of Port Arthur Classification and Pay Plan consists of 84 (eighty- four) ranges with ten (10) steps in each range. The Plan is diagonally symmetric with 2.5% (two and one-half percent) between each step. Over time this percentage has begun to vary between steps due to application of COLAs, etc. A Classification and Pay Plan table has been prepared which restores the symmetry and the discrete 2.5% (two and one-half percent) interval between steps. Phase III Classification and Pav Plan Movement As noted by the consultants the City's step movement is extremely aggressive. It was designed for employees to reach the top step [step 10] in less than five (5) years. However, fiscal difficulties have prevented such general step movement since implementation. Step movement would be amended by continuing to allow movement from Step 1 to Step 2 after 6 months; then movement from Step 2 to Step 5 on annual basis, Step movement from Step 6 to Step 10 every three (3) yeazs. This would lessen the fiscal impact of step movement and prevent the "bottle neck" effect at Step 5. This step movement is anticipated to begin. October O1, 2010 budget, pending review of funding availability at that time. Phase IV Specially Imnacted Positions The independent review of the Classification and Pay Plan indicated that the City's plan is very strong relative to position below Range 47. However, there is definitive market lag of varying amounts for classifications at or above Range 47. These positions are at the division head or higher level. These positions will be reviewed using the consultant analysis and current salary data as part of the City's annual Benchmazk Survey. This will allow for appropriate plan maintenance with regazd to maintaining internal equity along with mazket competitiveness.