13 Unified Non-Civil Service Pay Plan

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CITY OF PARIS, TEXAS CITY COUNCIL AGENDA REQUEST MEETING DATE: January 28, 2008 ~Action ❑ Discussion ~Information ❑Refer to; SUBMITTED BY: Gene Anderson, Finance Director DESCRIPTION: Consolidation of the two city pay plans. BACKGROUND INFORMATION: The city pay plan referred to, as the "old plan" was put in place in 1983. It is a standard matrix design that is still used today both in government and the private sector. It consists of 72 grades each with 5 steps. Going from step 1 to step 5 takes a minimum of 3 years, but it can take longer if employee performance is not up to acceptable standards. The second city pay plan referred to as the "Z plan" was implemented in September 2004. It is a mirror image of the old plan except that (1) the steps on every grade are 9% less than the steps on the old plan and (2) it takes a minimum of 5 years to go from step 1 to step 5 on the Z plan. All employees hired after September 1, 2004 and all employees promoted after that same date must be placed on the Z plan and not the old plan. ~ The proposed consolidated plan merges and expands the old plan and the Z plan. The proposed plan is a matrix design with 75 grades each with 10 steps. It would take a minimum of 20 years to~go from step 1 to step 10 of the conso~idated plan. The first five steps of the consolidated plan are identical to the Z plan. Steps 6 and 7 of the combinetl plan are virtually the same as steps 4 and 5 of the old plan (they are actually one half percent lower than the old plan amounts). Steps 8, 9, and 10 of the consolidated plan are entirely new steps. There is a 2.5% increase between each grade and a 5% increase between each step of the consolidated plan. The minimum interval between the steps are as follows: Between steps 1 and 2 is 6 months; between steps 2 and 3 is 6 months; between steps 3 and 4 is 24 months; between steps 4 and 5 is 24 months; between steps 5 and 6 is 24 months; between steps 6 and 7 is 24 months: between steps 7 and 8 is 36 months; between steps 8 and 9 is 36 months; and between steps 9 and 10 is 60 months. The cost of implementing the consolidated plan over the next 10 years above the cost of the current plans is estimated to be 1.2 million dollars (see detail on accompanying spreadsheet).