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FROM :HAY MGMT CONSLT 612 333 2009 1997.04-28 12:39 #688 P.16/30 <br /> • <br /> Mr. Richard Salvati • <br /> February 25, 1993 <br /> . Page 3 <br /> opportunity to meet with Public Utility Commissioners Don Gregg and Bill <br /> O'Connor, to discuss these policy questions. Unfortunately, although the City <br /> invited two Council Members, they were unable to attend. After the meeting, <br /> the Commissioners in attendance suggested that they would like to see <br /> follow-up on two items. First, a checklist of the salary administration <br /> decisions the Commission and Council should attend to, and second, a <br /> checklist of the items the Council and Commission should monitor over time <br /> to ensure they are maintaining appropriate direction and control over the <br /> salary program. <br /> A short checklist of salary administration decisions the City Council and <br /> Public Utility Commission should address includes the following: <br /> 1. Should the City and Utility continue to use cost-of-living increases? <br /> Hay understands that the City and Utility have eliminated this practice. <br /> • <br /> 2. • What is the City's and the Utility's desired competitive position• <br /> • relative to the external pay market? In other words, how does the <br /> City wish to link its salary ranges to the external market? Hay <br /> characterized the external competitive market in its final report. <br /> 3. Should salaries for City and Utility employees be administered <br /> together or apart? Hay addresses this issue, too, in its final report. <br /> 4. How should individual pay progression be determined? For example, <br /> one alternative approach is seniority based salary progression, which <br /> typically utilizes a one step increase for every year of service.in the <br /> job. Another example is pay-for-performance. A final example is that <br /> the employees current position in the range could determine salary <br /> progression, with the salary midpoint designated as the salary target of <br /> intention. <br /> • <br /> As the Council and Commission decide on the design of a new salary <br /> administration system, they should carefully monitor the total cost of the pay <br /> program. This is particularly true for those administrative measures which <br /> can significantly impact the total cost. For example, if an employee's current <br /> pay (and current maximum) exceed the recommended maximum under a new <br /> salary range, how is this situation addressed? It is customary in this situation <br /> • <br /> Hup <br />