Minutes 10/01/1998 - Laserfiche WebLink

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.3.56 .THURSDAY, OCTOBER 1, 1998 Council next heard a presentation on the City Pay and Compensation Plan, provided by Mr. Reynolds. Mr. Reynolds noted that throughout the course of each year he and the School Superintendent ordinarily handle day to day individual adjustments in compensation issues, and try annually to keep the overall pay plan in line with the labor market. He then reviewed the history of the implementation of the existing Market Based Pay ~" Plan, which had been implemented in late 1992, and the measures taken through each subsequent budget cycle to provide for plan adjustments and compensation of employees. Mr. Reynolds also noted challenges in getting good comparable wage information from other jurisdictions and the continued trend of combining more duties in many of the City's positions. He characterized the current picture as one of pay plan compression, which was causing problems in both retention and recruiting of qualified employees. Mr. Reynolds then stated that one hundred fifty two City positions were far enough out of line to indicate the need for adjustment of the Pay Plan. Mayor Crabtree noted that the principal of the Pay Plan was to provide a competitive wage to all the employees and if one hundred fifty two positions were out of line with the market this constituted over one half of the City' s positions. Council Member Haskell stated that the commitment to stay current with the market had not been met. Council Member Dallas stated that he did not wish to be caught up in a market competition. Vice-Mayor Teague then stated that a balance needed to be struck among the issues of internal equity, external equity, and affordability. Mayor Crabtree noted that the "opportunity cost" of having to replace fully qualified people was a consideration. Council Member Roop then spoke to the issue of the need to place value on fully qualified employees, citing the requirement in many of the City's positions for State certifications and other standards. Mr. Reynolds then stated that most employees were ,--. already aware of the short comings of the current compensation situation, and that it was important that employees trust the organization' s commitment to the plan and consider employment with the City as a career opportunity. He then went on to state his intent to accomplish a pay plan adjustment on October 1, 1998 that would affect the one hundred fifty two positions noted, and bring these positions closer to market rates. Mr. Reynolds noted that the fiscal impact on the General Fund in the current fiscal year would be approximately