[9. Receive, consider and act upon a presentation from Waste Management regarding funding to enhance environmental education and 2022/2023 Waste Management highlights;]

THAT. WE WILL TALK ABOUT THAT WHEN WE ARE READY TO MAKE A SOLID DATE. WE DID WELCOME TINA MURPHY AS A NEW BOARD MEMBER AN ANOTHER RESIDENT OF TRACE CREEK WE ARE OPEN TO OTHER PEOPLE IN OUR VILLAGE BUT THAT SEEMS TO B WHERE ALL OF OUR PEOPLE ARE COMING FROM. OUR NEXT MEETING I ON JUNE 13TH AND WE THANK YOU

FOR YOUR TIME TODAY. >> WELL DONE INDIAN SPRINGS.

LOTS OF GOOD THINGS. ALL THOSE IN FAVOR SIGNIFY? OPPOSED? MOTION PASSES. THE AGENDA ITEM IS THE CONSENT AGENDA. THE CONSENT AGENDA ITEMS ARE NONCONTROVERSIAL HOUSEKEEPING ITEMS REQUIRED BY LAW AND WILL BE CONSIDERED FOR APPROVAL WITH ONE MOTION. NO DISCUSSION WILL BE HERE UNLESS THE ITEM IS REMOVED FROM THE CONSENT AGENDA BY ANY BOARD MEMBER PRIOR TO TAKING A VOTE ON THE MOTION. PAGES NINE THROUGH 18 IF YOU HAVE RECEIVED THIS IS THERE A MOTION? IS THERE A SECOND? MOVE AND SECONDED. ALL THOSE IN FAVOR? MADAM CHAIR COULD YOU

ALLOW US TO PULL OUT ITEM 8K? >> ANYTHING ELSE? IF NOT IT HAS BEEN MOVED AND SECONDED AS AMENDED TO GO AHEAD AND CONSIDE 8B. THAT BRINGS US TO THE REGULAR AGENDA ITEM NUMBER EIGH A WILL BE FIRST ON THE AGENDA.

[00:45:11]

>> WE DO NOT HAVE A REPRESENTATIVE LAW ENFORCEMENT HERE SO WE WILL DO OUR BEST TO ANSWER ANY QUESTIONS OR BRING

THEM FURTHER. >> CAN WE DEFER UNTIL SOME OF THEM ARE ABLE TO MAKE THE PRESENTATION? OKAY. THEY ARE NEXT SCHEDULED TO GIVE A PRESENTATION TO THE BOARD IN TH JULY MEETING. I'M SORRY IN CAN WE MOVE THAT UP TO THE JUNE

MEETING? >> WE CAN REQUEST THAT THEY, TH JUNE MEETING. THEY WERE DEFERRE IN MAY BECAUSE OF THE LENGTHY AND ENCOURAGED PUBLIC COMMENT THAT WE ARE THANKFUL FOR THAT THEY WERE DEFERRED OKAY. IS THERE A MOTION FOR THAT? I THINK THAT'S WHAT THEY LOOK FORWARD TO SEEING WHAT IS GOING

ON WITHIN THE COMMUNITY. >> THIS IS JUST A MONTHLY REPOR LIKE WE HAVE ALMOST EVERY MEETING. THERE IS NOTHING HIDDE IN IT. THERE IS A MOTION FOR DIRECTOR MILNER IS HERE WITH DIRECTOR FRANKS. THAT BRINGS U TO THE EXCITING NEWS FOR THE EVENING. I WOULD REFER YOU TO PAGE 19 10 IN LA PAZ OF PUBLIC-SECTOR SOLUTIONS IS HERE TONIGHT TO PROVIDE AND OVERVIE OF THE 2022-2023 WASTE MANAGEMENT HIGHLIGHTS AND CAN I ALSO SHARE ABOUT YOUR PRESENTATION? AND A WONDERFUL PRESENTATION OF EDUCATION FUNDING THAT I'M NOT TO SHARE THE AMOUNT OF TO THE TOWNSHIP FOR THE ENVIRONMENTAL EDUCATION

PROGRAMS. >> ABSOLUTELY. WITH ME HERE IS THE NEW DISTRICT MANAGER AND KEITH REYNOLDS. SO KEITH TOOK OVER THE DISTRICT CLOSE TO A MONTH AND A HALF AGO. HE CAME FROM THE PASADENA DISTRICT IS NOT NEW TO THE BUSINESS AND IS JUST NEW TO THE WOODLANDS. YOU NOTICE ALL THE SAME CRUISE AND WE JUST SEE THE MANAGED OPERATION WITH THE SAFETY OF OU

EMPLOYEES. >> WELCOME. IT HAS BEEN A PLEASURE WORKING WITH STAFF I CAN NAME A LOT OF PEOPLE BUT I WILL SPARE YOU ALL THE DETAILS. THE WOODLANDS IS A GREAT COMMUNITY AND I'M HONORED TO BE THE CONTACT FOR YOU. I CAN GIV YOU AND OVERVIEW OF WHAT WE HAV SEEN IN THE PAST YEAR. THERE AR 40 DIRECTORS AND WE CONSIDER OURSELVES PART OF THIS COMMUNITY. NOT JUST YOUR REGULAR PROVIDER WE WANT TO BE PARTNER WHETHER IT'S THE FOURTH OF JULY THE MEMORIAL DAY OR ANY OTHER KIND OF EVENT. WE ARE MOR THAN JUST THE PERSON PICKING UP YOUR GARBAGE AND YOUR RECYCLING IT MAKES US PROUD TO BE HERE AN WE WILL GIVE YOU STATISTICS ON GARBAGE AND RECYCLING BECAUSE YOU'RE DOING OUTSTANDING. LAST YEAR WE HAD OVER 35,000 RESIDENTS SO WHEN YOU THINK ABOUT THE RECYCLING BULK COLLECTION AND ALL OF THIS COMBINED WE ARE IN YOUR STREETS WITH OVER 5 MILLION TOUCHES A YEAR. THAT'S MORE WE USED TO BE

[00:50:07]

MORE THAN ANYONE BUT NOW I'M NO SURE I HAVE PACKAGES PERSONALLY COMING LEFT AND RIGHT. THOSE NUMBERS ARE PRETTY REAL. AND YO CAN SEE THAT HAPPENING IN YOUR COMMUNITY A LOT OF THE TIME THE WATCH OUT FOR THE SAFETY OF THE RESIDENTS IN OUR SCHOOL GETTING OUT THEY WILL BE OBSERVANT FOR ALL OF THOSE CHILDREN IN THE STREETS. WE SEE ALL THE HOLES THAT NEED TO BE PATCHED SO WERE LIKE ANOTHER SET OF EYES ON THE COMMUNITY. OUR RESIDENTS HAVE OVER THE CAPACITY OF THE LAST YEAR HAD OVER 25,000. WITH EXTR BAGS THAT WE PICKED UP. THAT IS REALLY AMAZING. SO WHAT DOES THAT LOOK LIKE? WHEN I LOOK AT THE TOTAL BELONGINGS THAT WE SA IN 2022 IT DID DECREASE AND ONE OF THE REASONS WHY WE ARE BELIEVING THAT IT DECREASED IS THAT WE HAVE SOME RESIDENTS THA WE FEEL HAVE GONE BACK TO WORK. 2020 TO 2021 IT DID DECREASE FROM COVID AND RUNNING THE WHOL GAMBIT. SO WE HAD A VOLUME DECREASE AS WELL. YOU WANT TO LOOK AT THE TOTAL VOLUME IT IS OVER 41,000 TIMES WHEN YOU LOOK AT RECYCLING GARBAGE AND BULK AND THEN THE COLLECTION THEY AR BRINGING OTHER ITEMS TO THE DROPBOX SITE. WHEN YOU DO THAT MAP PER RESIDENT IT'S OVER 45 POUNDS PER WEEK COLLECTED. WHEN YOU LOOK AT IT FROM A YEAR EACH OF YOU ARE PRODUCING A TON OF GARBAGE AT YOUR RESIDENCE. IT I REALLY MIND-BOGGLING AND I'M A NUMBERS PERSON SO I LIKE TO TRY TO ANALYZE THIS. THE AMOUNT OF GARBAGE AND RECYCLING HERE IS ONE OF THE REASONS WHY THE WOODLANDS REALLY SHINES. 93 PERCENT OF YOUR RESIDENCE RECYCLED. AND THAT IS OUTSTANDING. THE BEST WE HAVE ANYWHERE NEAR HERE. AND I CAN WITNESS THAT BECAUSE I SERVICED LOTS OF COMMUNITIES AROUND THE AREA. YOU WILL SEE 50 PERCENTOR 65 PERCENT OF THE RESIDENCE RECYCLING AND THAT IS JUST AMAZING. ABOUT TWO YEARS AGO WE WANTED TO FOCUS ON REDUCING CONTAMINATION. AS A WHOLE WAS ALL ABOUT 25 PERCENT IN MOST OF OUR COMMUNITIES WITH THE HELP O THE WOODLANDS AND THE EDUCATION SOURCES THAT WE'VE PUT OUT HERE YOU GUYS HAVE DONE IT OUTSTANDING JOB OF COMMUNICATIN TO RESIDENTS WHAT IS CONTAMINATION AND WHAT SHOULD NOT IN UP IN YOUR CONTAINERS. YOU HELPED US TAG CONTAINERS AN REDUCED IT TO 16.4 PERCENT FOR THE YEAR IN THE LAST AUDIT IT WAS DOWN TO 12 PERCENT. WE TRY TO TARGET THIS IF WE HAVE ONE COMMUNITY THAT HAS HIGHER CONTAMINATION RATES WE LOOK AT IT. YOU GUYS HAVE HELPED US TREMENDOUSLY CUT THAT NUMBER COMPLETELY DOWN I BELIEVE IT WA CLOSE TO ONLY 20 PERCENT AND I THINK THIS YEAR WE WILL BE CLOSER TO 12 PERCENT AND THAT I JUST SO AMAZING. THAT IS A BIG PART OF STAFF. AND THEN LOOK A THAT DIVERSION WHAT PART OF MATERIALS FROM THE GARBAGE OR THE YARD WASTE IS ACTUALLY ABLE TO BE RECYCLED. YOU HAVE ABOUT 27 PERCENT. WHICH IS ALSO GREAT MOST THE TIME AND THE OTHER COMMITTEES YOU SEE ABOUT 18 TO 20 PERCENT. SO THERE IS STILL ROOM FOR IMPROVEMENT BUT YOU AR DOING REALLY GOOD. WE ARE EXCITED LAST YEAR IN FEBRUARY O 2022 AFTER THE REMODEL OF THE WEST SIDE MATERIAL RECOVERY FACILITY WHERE ALL THE METHODS RECYCLED MATERIALS GO HAS BEEN REOPENED. AND I KNOW THAT WE WILL HAVE SOME OF THEM TAKE A TOUR OF THE NEW RAVENNA IN THE

[00:55:08]

RENOVATED FACILITY WHICH IS ACTUALLY CHANGING THE WAY THE PROCESS MATERIALS THAT IS CLEANER AND WE CAN PROCESS ABOU 10,000 TO 12,000 TONS A DAY. S IT IS INCREDIBLE WITH THE MATERIALS THAT WE ARE AFTER AT THESE FACILITIES I THINK ONE IS CARDBOARD ON THIS BAIL AND IT'S A STATE-OF-THE-ART FACILITY AND IT IS UNBELIEVABLE FROM WHERE W WERE. IF YOU TOURED THE FACILIT BEFORE THIS IS LIKE A BRAND-NEW PLACE SO I ENCOURAGE YOU TO COM AGAIN. ANOTHER THING THAT WE IMPROVED RECENTLY AND I BRING THIS UP BECAUSE WHEN YOU HAVE 25,000 OF THESE TAGS RESIDENTS ARE GOING TO SEE THIS IF YOU STILL HAVE THE OLD TAGS WITH TH BAR AT THE TOP YOU CAN STILL US THOSE. BUT WITH THE HELP OF STAFF WE ARE UPGRADING TO STICKERS. THEY ARE BEING DISTRIBUTED TO KROGER'S AND OTHER LOCAL STORES. AND ONE OF THE THINGS THEY CAN GET IS A ROUNDUP OF STICKERS AND IT IS EASIER THAN HAVING SOMETHING TO TIE ON TO HAND OUT. I THINK THAT PROGRAM EFFORT OVER THE LAST FEW MONTHS HAS BEEN WELL ACCEPTED BY OUR RESIDENTS. SO W DO NOT HAVE ANY TAGS LEFT SOON AND STICKERS WILL BE OUT THERE. BUT WE'VE SEEN THE EASE-OF-USE FROM EVERYONE FROM OUR SIDE TO THE RESIDENCE AS WELL SO THANK YOU FOR THAT RECOMMENDATION TO STAFF. AND THEN I THINK THEY TALKED ABOUT LAST YEAR A LITTLE BIT OF THE SMART TRUCK TECHNOLOGY. THEY ARE TRYING TO DRIVE TECHNOLOGY TO HOW WE CAN DO OUR JOB BETTER AND HOW WE CA ENSURE THE SAFETY OF OUR EMPLOYEES BUT ALSO HOW DO WE COMMUNICATE AND EDUCATE ABOUT CONTAMINATION? OUR TRUCKS HAVE ROUGHLY 8 CAMERAS EACH. USING THAT SMART TECHNOLOGY TO BE ABL TO CAPTURE AS WE ARE PICKING UP IT HAS GIVEN US PARCEL DATA SO IF SOMEONE IS HERE THEY THEY KNOW EXACTLY THOSE LOCATIONS. IN ADDITION THAT TECHNOLOGY WIL ALLOW US TO GET FEEDBACK TO THE RESIDENTS SO WE CAN KNOW WHAT THEIR ETA IS FOR THEM TO PICK U GARBAGE. THEY SHOULD BE ABLE TO GO ONTO OUR WEBSITE PUT ON THEI ADDRESS AND IT WILL SAY THE DRIVER WILL BE THERE IN APPROXIMATELY SOMETIME BETWEEN NOW AND 2:00. ANYTHING LIKE THA THAT CAN HELP TO IMPROVE THE CUSTOMER EXPERIENCE IS MORE THA JUST FOR BENEFIT OF SAFETY.

THERE IS THE CUSTOMER OPTIMIZATION AND HOW THEY CAN USE IT. WE ALL HAVE CELL PHONES THAT WE CAN EASILY ACCESS THIS TO WERE ALL LOOKING AT DIFFEREN FEATURES TO USE SMART TRUCKS.

NOW FROM THE CUSTOMER SERVICE OPTIMIZATION LEVELS YOU'VE PROBABLY TALKED TO WHAT WE CALL LISA THIS IS OUR NEIGHBORHOOD ASSISTANCE IN THEIR OPTIONS WHEN IT GOES THROUGH ITS TRYING TO GET BETTER SERVICE OPTIONS T SERVICE CUSTOMERS BETTER. IF A CUSTOMER SAYS YOU MISSED THIS W WOULD BE AVAILABLE TO ASSIST AN GIVE THEM A CONFIRMATION. IF IT IS SOMETHING ROUTED TO AND AGEN IT CAN THEN PROVIDE FASTER SERVICE ESCALATE CERTAIN ISSUES WE ARE LOOKING FOR MORE FEATURE YOU GUYS IN THE WOODLANDS DON' HAVE INDIVIDUAL ACCOUNT NUMBER SO WE HAVE ADDRESSED THAT IT SAID WE NEED TO ADDRESS SOME OF THESE ISSUES. IT IS LEARNING TECHNOLOGY AND HOW IT CAN WORK BEST FOR THE CUSTOMERS.

CUSTOMERS WANT MORE OF A SELF SERVICE LEVEL AND IN SOME ASPECTS IT WILL EVENTUALLY BE ABLE TO GIVE CUSTOMERS A TEXT AND THEN THEY CAN SCHEDULE BULK PICKUP. RESIDENCE RIGHT NOW CAL

[01:00:05]

US TO SCHEDULE BULK PICKUP AND WE WANT TO HAVE A SYSTEM WHERE THEY CAN GO AND SCHEDULE IT THEMSELVES WITHOUT ACTUALLY HAVING TO HAVE THE FUNCTION TO CALL US. A SIMILAR THING WITH THE ETA AND THE MIST PICKUP IF CUSTOMER HAS SOME RECENT REASON THAT THEY COULD MISS THIS THEY WOULD HAVE TO HAVE THESE FEATURES. SO THERE'S A LOT OF TECHNOLOGY INVOLVED WITH WAY WE

ARE DOING BUSINESS. >> MADAM CHAIR CAN ASK A

QUESTION? >> IT'S RELATED TO THIS MPU.

THIS IS ONE OF THE THINGS THAT GET A FEW CALLS ON. IF A TRUCK CANNOT GET DOWN THE STREET I WOULD LIKE YOU TO ADDRESS THAT

MORE? >> WE DO RUN ACROSS THAT OCCASIONALLY WHERE THEY ARE BEING BLOCKED WHETHER IT IS A CUL-DE-SAC OR YOU HAVE A DRIVE OR TRUCKS THAT ARE PARKED DOING REMODELING OR CONSTRUCTION WORK IF THEY ARE ON THAT ROUTE THEY WILL GO BY AT LEAST A FEW TIMES TO TRY TO SEE IF THE VEHICLES PARKED IN THE STREET CAN BE MOVED. IF NOT THEY WILL TAG THE FIRST ADDRESS THEY COME TO SO THERE IS A TICKET TO LET THEM KNOW WE COULD NOT SERVICE THIS PARTICULAR ADDRESS. ALL OF THA ALSO WITH THE SMART TRUCK IT HA CAMERAS SO WE ARE IDENTIFYING THEN AND THERE THAT THIS WAS TH OBJECT THAT CAUSED US TO NOT BE ABLE TO SERVICE THIS AREA I MEA IT DOES HAPPEN SOMETIMES. IF A CUSTOMER CALLS IN WE WILL PUT I A COURTESY TICKET AND TRY TO PICK IT UP WITHIN THE NEXT DAY OR SO OF MISSING IT. BUT WE WIL NORMALLY TRY WITHIN THAT DAY TO GO BY A FEW TIMES BEFORE JUST SAYING WE CAN'T SERVICE IT. SOMETIMES IT'S A MOWING CREW OR SOMETIMES IT'S MORE OF A PERMANENT SITUATION WE CAN'T GE

AROUND THEM. >> ARE THERE ANY OTHER QUESTIONS? TO MAKE YOU CAN RUN THEM DOWN TOO I'VE DONE THAT.

>> I HAVE SOME QUESTIONS THANK YOU FOR YOUR PRESENTATION.

YOU'VE TAKEN WASTE MANAGEMENT MANAGEMENT GREEN TO A NEW LEVEL RECENTLY HAD A MEETING WITH SOM OF OUR BUSINESS LEADERS IN THE AREA ABOUT TRYING TO DO FILM RECYCLING PROJECTS. FROM MY UNDERSTANDING IT CLOGS UP THE RECYCLING CENTER A LOT. SO THE PLASTIC BAG OR THE OTHER PLASTICS THAT ARE INVOLVED WITH THE DRY-CLEANING. I THINK IT IS A GREAT PLAN AND I'VE TALKED ABOUT HOW WE ARE WORKING ON THI ACROSS THE COMMUNITY TO START COLLECTING IT AND FROM WHAT I UNDERSTAND THERE IS A WAY TO SELL THIS AS A RECYCLABLE? I WOULD BE I WOULD LOVE TO BE ABL TO TOUR WHEN YOU'RE SINNERS. WE HAVE INCREDIBLE NUMBERS THAT SHOW THIS BUT I THINK WE HAVE A NEW DIRECTOR OF COMMUNICATION STARTING SOON THE CAN HELP TO EDUCATE WITH NEW VIDEOS AND THINGS ABOUT WHAT YOU CAN RECYCLE AND HOW WE CAN FIX THIS TO REALLY START PUSHING THAT MESSAGE OUT. I ALSO LEARNED WORKING IN THE ENGINEERING CONSTRUCTION LEVEL I WAS AT A CONFERENCE AND I CAME IN FROM FLORIDA. THE INVESTMENT FUND WA TALKING ABOUT A PLASTIC RECYCLING COMPANY THAT IS HEADQUARTERED HERE IN THE WOODLANDS THAT CONTINUES WITH MATERIALS THAT WASTE MANAGEMENT IS PARTNERED WITH AS WELL. THEY TAKE PLASTIC RECYCLING AND TURN IT INTO ROOFING MATERIAL AND IS

[10. Receive, consider and act upon a report from Evergreen Solutions, LLC, regarding the 2023 Compensation and Classification Study (C-2022-0393);]

A GREAT AVENUE TO TURN IT INTO 93 PERCENT OF CYCLING HERE A LOT OF THESE FACILITIES WILL HAVE AREAS WHERE YOU CAN SEE WHAT THEY ARE DOING AND GET TORS. I THINK IT WOULD BE GOOD FOR THE PUBLIC TO UNDERSTAND THAT AS WELL. THERE ARE A LOT O DIFFERENT USES FOR THESE COMMODITIES. SO MUCH HAS CHANGE

[01:05:06]

GLOBALLY WITH WHAT YOU CAN DO WITH THE COMMODITY AND WHAT THEIR VALUE IS. WE DON'T THINK ABOUT IT ONLY PUT THINGS IN THE RECYCLE BIN AND WHAT HAPPENS WITH IT BUT THERE IS A LOT TO

LOOK AT NOW. >> YOU CAN SEE THE PLASTIC PIEC IN THE FILM AND THE BAGS IS MOR OF A MODULAR APPROACH WITH THE RECYCLING FACILITY. I'M HEARING IN AUGUST TIME FRAME FOR THE EQUIPMENT THAT WE WILL BE ABLE TO TAKE SOME OF THIS BACK. I AM EXCITED BUT I DON'T WANT TO SPREAD THIS TOO MUCH BECAUSEWE DON'T WANT BAGGED RECYCLABLES. BUT THAT WILL CHANGE TO ALLOW U TO TAKE IN MORE OF THAT THAT IS LOOSE.

>> PUT IT IN A PLASTIC BAG AND IT CAN BE RECYCLED. I GOT A LETTER THAT SAID STOP DOING THAT. AND NOW I WILL NEVER DO

THAT AGAIN. >> THEY HAVE YOU ON CAMERA NOW

LINDA. >> THERE IS A LOT OF INTEREST FROM THE BOARD THAT WE WOULD LIKE TO COLLABORATE. BUT I THIN WE WOULD BE REMISS IF WE DID NO RECOGNIZE MEGAN AND ANGEL FOR EVERYTHING THAT THEY HAVE DONE IN THE ENVIRONMENTAL SERVICE DEPARTMENT. THEY HAVE HELPED BRING THAT 93 PERCENT HERE FRO WHAT IT WAS DOWN TO 12 PERCENT. WE ARE HONORED TO HAVE YOU HERE MR. REYNOLDS AND MISS LOPEZ. THANK YOU AND HOPEFULLY IT WILL NOT BE A YEAR BEFORE WE CAN COM BACK.

>> I THINK WE WOULD LIKE TO DO CHECK PRESENTATION. THIS IS THE EDUCATION THAT RUNS ANNUALLY. W ALREADY GAVE YOU THE REAL CHECK BUT THIS IS THE ONE THAT WILL HELP WITH THAT CONTAMINATION AN CONTINUE WITH THE RECYCLING. THANK YOU VERY MUCH AND WE

APPRECIATE YOUR PARTNERSHIP. >> WHAT WE WOULD LIKE TO USE HAVE YOU BE ABLE TO HEAR WHAT THE PUBLIC WANTS TO KNOW IS

BEING CONTRIBUTED. >> AT $74,194.

>> THANK YOU. >> I MOTION TO ACCEPT THE CHECK SECONDED BY DIRECTOR MILNER. AL THOSE IN FAVOR? ALTHOUGH SUPPOSED? THE MOTION PASSES. THAT BRINGS US TO AGENDA ITEM NUMBER 10 RECEIVE CONSIDER AND ACT UPON A REPORT BY EVERGREEN LLC REGARDING THE 2023 COMPENSATION AND CLASSIFICATION STUDY. I REFER YOU TO PAGE 20 AND OUR DIRECTOR OF HUMAN RESOURCES WILL PROVIDE HIGHLIGHTS RELATED TO THE 2023 COMPENSATION AND CLASSIFICATION MR. MARK HOLCOMB FROM EVERGREEN

[01:10:05]

SOLUTIONS WHO IS ALSO HERE TO SHARE WITH THIS REPORT. THE

FLOOR IS YOURS ANGELA. >> THANK YOU CHAIRMAN CIDER AND CHAIRMAN AND BOARD. IT IS GREA TO BE ABLE TO BE HERE TO TALK ABOUT THIS COMPENSATION STUDY. THIS IS A TOPIC THAT IS VERY IMPORTANT TO EVERYONE AND MANY MORE I'M EXPECTED OR WATCHING ONLINE. LAST YEAR THE BOARD APPROVED A COMPENSATION STUDY T BE CONDUCTED AND THEN SUBSEQUENTLY SELECTED EVERGREEN SOLUTIONS TO BE THE CONSULTANTS TO CONDUCT THAT STUDY FOR US.

MARK WAS HERE WITH HIS TEAM AND KELLY IS ALSO HERE FROM EVERGREEN. MARK WAS WITH US IN JANUARY TO KICK OFF THE STUDY AND SINCE THEN WE HAVE HAD A FE ACCOMPLISHMENTS MOVING THE STUD FORWARD. OVER 100 EMPLOYEES PARTICIPATED IN FOCUS GROUPS WITH EVERGREEN. THE BOARD THEN APPROVED IN FEBRUARY A 27 PEER ORGANIZATION TO BE INCLUDED IN THE EXTERNAL MARKET SURVEY OVE 350 EMPLOYEES COMPLETED JOB ANALYSIS QUESTIONNAIRES AND SUPERVISORS REVIEWED THEM. WHIC IS A HUGE ACCOMPLISHMENT IN AND OF ITSELF. SO THANK YOU TO ALL OF THE STAFF THAT DID WORK ON THIS. AT THIS TIME THE MARKET ANALYSIS HAS BEEN COMPLETE.

TONIGHT MARK IS GOING TO GO OVE THE FINDINGS OF THAT STUDY.

THEY ARE ALSO GOING TO BE HERE TOMORROW AND FRIDAY TO REVIEW THE FINDINGS OF THE STUDY WITH OUR EMPLOYEES. WHEN WE TALKED T YOU IN JANUARY WE MENTIONED TRANSPARENCY WAS A HUGE GOAL FO THE STUDY. EMPLOYEE MEETINGS HAVE BEEN HAPPENING ALL ALONG AND WILL CONTINUE TOMORROW AND FRIDAY. IMPLEMENTATION WILL BE UP TO YOU IN TERMS OF WHAT YOU IMPLEMENTS AND WHEN WE IMPLEMENT IT. MARK IS GOING TO TALK THROUGH SOME OF HIS RECOMMENDATIONS BUT ALSO THE FURTHER OPTIONS. SO NOW I WILL

HAND IT OVER TO MARK. >> THANK YOU FOR HAVING ME AGAIN. IT IS GREAT TO BE BACK HERE IN THIS TIME TO PRESENT SOME RESULTS AND FINDINGS RATHE THAN JUST TALKING CONCEPTUALLY ABOUT THE STUDY. WHAT I WILL DO TODAY IS A LITTLE BIT OF A RECAP. ABOUT THE PHASES THAT WE WENT THROUGH AND SOME OF THIS AGAIN YOU WILL OF ARTIE HEARD. IF ANYONE IS WATCHING TODAY THAT WILL BE GOOD FOR THEM TO GET HERE THE PROCESS TO HEAR EXACTLY HOW THOROUGH IT WAS. THERE WAS AND EXCELLENT PROCESS AND ALSO FROM EMPLOYEES TAKING TIME WE CANNOT MAKE ACCURATE RECOMMENDATIONS WITHOUT ACCURAT DATA. SO THOSE TAKING THEIR TIM IS A BIG PART OF THIS PROCESS. THAT WAS WHAT WE JUST REFERENCE WE COMPLETED THE PROCESS AND NO WE HAVE A GOOD PICTURE ON WHERE WE STAND VERSUS WHERE THEY STAN TODAY. WE HAVE FINDINGS ON YOUR INTERNAL SYSTEM AS WELL EVEN IF WE DIDN'T DO A MARKET ANALYSIS THERE ARE SOME THINGS THAT WE WOULD'VE SAID YOU SHOULD LOOK A THIS OR BE AWARE OF. AND THEN W HAVE RECOMMENDATIONS WITH THE NEXT STEP SOMEWHAT WE ARE DOING FROM HERE. YOU CAN SEE THEM COME IN LINE WITH BEST PRACTICES. WHAT THIS HOLDS ARE SOME OF THE MAIN GOALS WITH THE MAIN CLASSIFICATIONS TO ENSURE THE HIGHEST DEGREE POSSIBLE OF INTERNAL AND AT EXTERNAL EQUITY WE WANT TO ALWAYS REMIND PEOPL THAT IT'S NOT QUITE AS SIMPLE A FINDING THE AVERAGE LEVEL AND SAY THEY WERE GOING TO DO WITH THE MARKET DOES. THERE ARE ALWAYS REASONS YOU MIGHT WANT T DEVIATE. YOU'RE GOING TO OPERAT DIFFERENTLY IN EVERY ORGANIZATION. YOU MAY WANT TO OPERATE AT A MORE COMPLEX LEVEL AND YOU WOULD SAY THAT HE WAS B MORVEN ENTRY LEVEL AND BUILD A CAREER PATH WITH PROMOTIONAL OPORTUNITIES THAT THEY HAVE HERE THERE ARE NOT ELSEWHERE. I IS ALWAYS IMPORTANT TO CONSIDER THE INTERNAL STRUCTURES YOU LOO AT THE MARKET. WE ALSO WANTED T TAKE A CHANCE TO LOOK AT THE COMPENSATION PHILOSOPHY. REALL MAKING SURE THAT THE ORGANIZATION HAS TRANSPARENCY SAYING THIS IS WHAT WE WANT TO DO WITH OUR COMPENSATION AND HERE IS THE PHILOSOPHY OF THE TOWNSHIP. ALL OF THE RECOMMENDATIONS KEEP ALL THREE OF THESE THINGS REALLY IN MIND WHEN WE LOOK AT THE MARKET THAT IS A KEY FACTOR THAT WILL GUIDE

[01:15:06]

THE RECOMMENDATIONS AND THE OVE ARCHING AND GUIDING PRINCIPLE AREAS MATCHING WITH THE TOWNSHI COMPENSATION PHILOSOPHY. WITH THAT THERE ARE SOME KEY THINGS WHEN WE HAD CONVERSATIONS WITH THE TOWNSHIP PRESIDENT CEO HR AND EXECUTIVE TEAM TO MAKE SURE THAT WE AGAIN HAD THE SAME GUIDING PRINCIPLES IN PLACE. ON THING WE HEARD IS THAT WE WANT TO BE LOOKING AT MARKET-LEADING PEERS OTHER ORGANIZATIONS THAT ARE SIMILAR WITH THE HIGH PERFORMING DESIRABLE COMMUNITIE TO LIVE AND WORK IN. WHEN WE LOOK AT THAT GROUP OF SELECT PEERS THAT WAS THE ONE THAT WAS BROUGHT FORWARD AND HAD ALREADY BEEN APPROVED. WE WANTED TO MAK SURE WE WERE TOWARD THE MARKET AVERAGE OF THAT GROUP. NOT NECESSARILY EVERY PEER IN THE HOUSTON AREA BUT THESE WERE THE APPROVED TARGETS WE ARE LOOKING AT WE WANT TO COMPENSATE FOR TH AVERAGE OF THAT GROUP TO MAKE SURE THAT YOU ARE WHERE YOU NEE TO BE. NOT NECESSARILY AT THE BOTTOM OR THE HIGHEST PAYING ORGANIZATION OUT OF EVERY PERSON. THE TOWNSHIP DID WANT TO LOOK AT PRIVATE SECTOR DATA PARTICULARLY WITH POSITIONS THA COMPETE MOST CLOSELY WITH THE PRIVATE SECTOR WITH THE UNDERSTANDING THAT YOU ARE NOT GOING TO MATCH DOLLAR FOR DOLLA WITH THE PRIVATE SECTOR FOR PAY VERY EASY EXAMPLE IS I.T. AS THE COMPUTER CODING SKILLS ARE DESIRABLE TO PRIVATE COMPANIES AS WELL IF YOU IGNORE THOSE IT LEAVES YOU OPEN TO THE FACT THA ESSENTIALLY ANY TIME A COMPANY COMES ALONG THEY CAN OFFER A SIGNIFICANT INCREASE IN PAY OR COMPENSATION BUT AT THE SAME TIME WE DID NOT MATCH DOLLAR FO DOLLAR. WE PULLED THE PRIVATE SECTOR AND TRIED TO FIND A GOOD MIDDLE GROUND BETWEEN THE PUBLI AND PRIVATE SECTOR PAY THAT WIL KEEP YOU COMPETITIVE FOR THOSE POSITIONS. WE ALSO WANT TO CONSIDER AND THIS IS ONE OF THE LAST SLIDES WE HAVE BUT WHEN WE PLACE INDIVIDUAL EMPLOYEES THE WOODLANDS DOES LOOK AT TIME AND POSITION AS WELL AS TIME IN THE TOWNSHIP OVERALL. SO WE WILL TALK ABOUT THAT IN THE END BUT THAT IS ONE OF THE THINGS THAT WE WERE LOOKING AT WITH THE EMPLOYEE IS NOT IN EVERY CASE NECESSARILY BUT IN MANY CASES YOU EXPECT SOMEONE WHO IS BEEN HERE FOR 10 YEARS AND IS OPERATING IN THE SAME POSITION TO MAKE MORE THAN EMPLOYEE WHO IS ONLY BEEN HERE FOR ONE YEAR. YOU HAVE EXTENSIVE OUT SIDE EXPERIENCE BUT AS A GENERAL RUL WE WANT TO RECOGNIZE THE SERVIC AND EXPERIENCE. LOOKING AT THE PROJECT OVERALL AND YOU CAN SE PHASE ONE IS REALLY ALL ABOUT OUTREACH AND DATA COLLECTION.

ALL ABOUT US LEARNING ABOUT THE TOWNSHIP AND MEETING WITH EMPLOYEES. COLLECTING DATA ÚCO TOWNSHIP PRINCIPAL AMONG THEM BEING THE HR TEAM WITH A LOT OF DATA AND QUESTIONS THEY HAD TO ASK. THEY SHARE THEIR THOUGHTS AND CONCERNS PROVIDING VALUABLE FEEDBACK. SO THIS IS WHAT THE EMPLOYEES THINK. WE WANT TO COM BACK EMPLOYEES TALK ABOUT THIS SO WE EVALUATE THAT MARKET POSITION. PHASE TWO IS THE INTERNAL ANALYSIS. IT WAS REALL US REVIEWING ALL OF THE DATA WITH THE JOB DESCRIPTIONS AND POLICIES REVIEWING NOTES WE HAD FROM THE OUTREACH MEETINGS.

OBVIOUSLY IT IS QUITE AND EXTENSIVE PROCESS WHEN WE LOOK AT MORE THAN 350 SURVEYS. AND THEN ALL OF THOSE MEETINGS WE HAVE THE SURFACE GROUPS AS WELL IT IS ALL DONE WITH A REAL GROU AND WE HAVE A FEW OTHER TEAM MEMBERS THAT ARE DEDICATING A NUMBER OF HOURS AT THEIR OWN TIME TO REVIEWING THIS AND MAKING SURE THAT EVERY SURVEY COMMENT AND EVERYTHING IT WAS SUBMITTED TO US WAS ADDRESSED. WHETHER IT WENT FORWARD OR NOT.

EVERYTHING NEEDED TO BE LOOKED AT. PHASE THREE WAS IN EXTERNA ANALYSIS. THIS INVOLVED US GOIN OUT AND SURVEYING AND COLLECTIN INFORMATION FROM THE PEER GROUP AGAIN IT WAS ALREADY APPROVED AND I WILL SHARE THAT FOR THOSE OF YOU IN THIS PRESENTATIONS YO

[01:20:02]

CAN SEE AS A REMINDER THESE ARE THE ONES WE LOOKED AT PROVIDING DATA AND I DON'T KNOW IF WE HAD 100 PERCENT PARTICIPATION BUT I WAS CLOSE. I KNOW WE DID GET AT LEAST 25 OR SO PEERS THAT RESPONDED AND WE WILL SEE THIS IN A FEW SLIDES WITH THE EXTERNAL ANALYSIS THAT IS CRITICAL TO MAKE SURE YOU ARE COMPETING AND THAT IS THE FIRST THING THE EMPLOYEES ARE TO LOOK AT. IF I WEREN'T GOING TO WORK HERE WHAT I BE PAYING MORE ELSEWHERE? AND THAT IS A KEY QUESTION EVERYONE IS GOING TO ASK. IF I AM DOING THE SAME JOB HERE AS SOMEONE ELSEWHERE WHAT MAKE MORE MONEY? THAT DOESN'T NECESSARILY MEAN THEY'RE GOING TO LEAVE AND TAKE THE HIGHEST PAID JOB IN ALL CASES. THERE AR NUMBER OF THINGS THAT ARE SHARE WITH US THAT THEY LOVE ABOUT WORKING IN THE WOODLANDS. THEY CAN BE OVERCOME IF THERE IS A MARKET GAP. BUT THIS IS SOMETHING WE HAVE TO PAY ATTENTION TO PARTICULARLY IN TH LABOR MARKET LIKE WE ARE LOOKIN AT TODAY. PHASE FOUR IS THE SOLUTION. WE DEVELOPED IMPLEMENTATION OPTIONS AND WE ARE GOING TO PRESENT THOSE TO YOU TODAY ALONG WITH A RECOMMENDATION AND THEN REPORTING IS A KEY PIECE OF THIS. THERE'S TRANSPARENCY TO SEE EXACTLY WHAT WE DID WITH THAT PROCESS THAT WE TOOK WING ABLE TO SHARE THE DATA AND SAY WE ARE NOT JUST GIVING YOUR RECOMMENDATION BUT WE ARE GOING TO SHOW THIS IS WHAT YOUR MARKE LOOKS LIKE. YOU CAN SEE WHY WE ARE MOVING CERTAIN POSITIONS BECAUSE OF WHAT THE MARKET DATA IS BEING RETURNED FOR THE POSITIONS WE ARE LOOKING AT. IT INCLUDES THINGS LIKE THIS PRESENTATION TONIGHT AND ALSO INCLUDES THE REST OF THIS WEEK MEETING WITH EMPLOYEES DIRECTLY TO WALK THROUGH A SIMILAR PRESENTATION ANSWERING THEIR QUESTIONS. AGAIN NOT NECESSARIL INDIVIDUALLY BUT WITH THAT IMPLEMENTATION APPROVED SO I CANNOT TELL JOHN SMITH WITH TH NEW SALLY WILL BE BUT WHEN SOMEONE SAYS WHY DO WE PICK THESE PEERS? WHAT DO WE DO WITH THE DATA WE COLLECTED FROM THE FOCUS GROUPS THE FIRST TIME OVER? DO WE LOOK AT JOB SURVEYS WE WANT TO MAKE SURE THE EMPLOYEES DO UNDERSTAND THE PROCESS AND WE TOOK IT VERY CLEARLY SO THEY GET THE RESULTS TO KNOW THAT THIS IS HOW IT WAS GENERATED. REFLECTING BACK TO HIM PLAY MEETINGS THAT I TALKED ABOUT IN PHASE ONE WE DID SIT WITH THE EMPLOYEES AND ASKED THEM FURTHER QUESTIONS. WE ALSO ASKED WHAT THEY LIKED ABOUT WORKING WITH THE TOWNSHIP. WHAT BROUGHT YOU HERE IN THE FIRST PLACE? WOULD IT HAVE KEPT YOU WORKING HERE OVER THE YEARS? MANY HAVE QUITE A FEW YEARS OF TENURE HERE. ONE OF THE THINGS MENTIONED WAS THE BENEFITS IT I A COMMON RESPONSE WE HEAR IN TH PUBLIC SECTOR BUT IT IS GOOD TO HEAR IT HERE. WE HEARD EMPLOYEE TALKING ABOUT THE BENEFITS PARTICULARLY HEALTH INSURANCE PREMIUMS AS WELL AS THE OPTION FOR THE MATCH WITH RETIREMENT WHICH IS SOMETHING WE HEARD PEOPLE TALKING ABOUT. I BELIEVE THERE IS A CONCERN ON THE BENEFITS AS WELL THAT EMPLOYEES WANT TO MENTION SO WE WILL TALK ABOUT THAT DEVELOPMENT. BUT BY AND LARGE THE FEEDBACK WAS POSITIVE ON BENEFITS. EMPLOYEES WERE ALSO POSITIVE ABOUT THE FACT THAT THEY HAVE SEEN SALARY INCREASES YEAR-OVER-YEAR SO THE ABILITY TO GET A RAISE IN ANNUA INCREASE THAT THEY ARE NOT FEELING LIKE THEY HAVE BEEN STUCK AT THIS RATE FOREVER WAS ANOTHER POSITIVE THING. IT STUC OUT TO US BECAUSE OF THE WORK W DO THAT IS NOT ALWAYS THE CASE.

SOMETIMES WE GO TO ORGANIZATION AND THEY SAY HEY RANGE LOOKS GREAT UNTIL YOU GET IN AND FIND OUT THAT WHERE YOU START IS WHERE YOU STAY. AND THAT WAS NO THE CASE FOR THE EMPLOYEES HERE WHICH IS AND ENCOURAGING REPORT THAT WE GOT. CULTURE WAS THE THIRD THING MENTIONED. WE ARE REALLY REFERRING TO PEOPLE AND RELATIONSHIPS WHEN WE SAY THAT. SYSTEMS IN PLACE WHERE THEY INTERACT EVERY DAY. EMPLOYEES TALK A LOT ABOUT THE PRIDE THEY HAVE WORKING FOR THE WOODLANDS. I THINK IT WAS SPECIFICALLY REFERENCED THE FIRST TIME I WAS HERE TALKING ABOUT THE NUMBER ONE PLACE TO LIVE IN THE NUMBER ONE TOWNSHIP IN THE COUNTRY THA IS SOMETHING THAT WE HEARD FROM THE MEETINGS WE CONDUCTED WITH EMPLOYEES AND IT WAS A MAJOR POINT OF PRIDE. BEING ABLE TO WORK AT A HIGH ACHIEVING MUNICIPALITY OR TOWNSHIP LIKE THIS IS AMAZING. THE ENVIRONMENT WAS THE LAST THING AND PROBABLY AGAIN IT TIES INTO THAT BEST PLACE TO LIVE BUT THE ENVIRONMENT AND ABILITY TO GO OUTSIDE WE HEARD A LOT ABOUT POOL PARTIES COMING UP AND THINGS LIKE THAT. EMPLOYEES WER HAPPY THEY SAY THEY LIKE TO LIV AND WORK HERE AND PARTICULARLY IN COMPARISON TO MAYBE WORKING SOMEWHERE MORE METROPOLITAN BUT YOU HAVE A BEAUTIFUL PLACE TO LIVE AND WORK RIGHT HERE IN THI COMMUNITY AND THAT IS WHERE THE ARE ALL HAPPY AND ENCOURAGED BY WE DID OF COURSE HEAR SOME CONCERNS. ONE OF THE THINGS THA WE HEARD WE CAME TO TALK IS WHA ARE THE THINGS THAT YOU WANT US TO LOOK AT? AND THE NUMBER ONE THING THAT WE HEARD PEOPLE SAID THE INTERNAL EQUITY. I FEEL LIKE THIS POSITION VERSUS THAT POSITION MAY NOT BE PLACED CORRECTLY WITHIN THE PAY GRADE.

THEY MAY SAY I FEEL LIKE MYSELF OR MY PAY VERSUS THIS IS NOT IN THE CORRECT SPOT FOR WHERE I SHOULD BE. EMPLOYEES REALLY SAI THAT I THINK WE CAN TAKE A LOOK AT THAT AND THEY SAID IF I'VE

[01:25:05]

BEEN IN THIS JOB, OR LEARNED AN I CAN ACHIEVE CAN I HAVE A PLAC TO PROMOTE? CAN I MOVE THROUGH THIS AND GO UP? INSTEAD OF BEING IN THE SAME CLASSIFICATIO AS SOMEONE THAT DOESN'T KNOW WHAT THEY'RE DOING YET. THAT WA ANOTHER THING IS HEARD FROM THE EMPLOYEES. AGAIN, CLEAR EXPECTATIONS WITH SOMETHING THA IS MENTIONED. WE ENCOURAGE THEM TO SAY FILL OUT YOUR JOB SURVEY FOR THE CLEAR EXPECTATIONS. SO WE CAN TAKE A LOOK AT THAT SOME EMPLOYEES SAID MY PAY WOULD BE FAIR IF I DID WITH THE JOB DESCRIPTION SAYS. BUT BECAUSE I'M DOING ALL OF THESE ADDITIONAL TASKS AND DUTIES THAT'S WHAT THEY WANT LOOKED AT INTERNAL EQUITY WAS DEFINITELY SOMETHING MENTIONED. PAPER AGGRESSION IS THE DOUBLE EDGE SWORD WITH HER SAYING YES MY SALARY IS GOING UP BUT SOME DID FEEL LIKE PROGRESSION WAS SLOWE THAN THEY WOULD HAVE LIKED. PARTICULARLY SOME MENTIONED THA THEY CAME FROM THE PRIVATE SECTOR AND ARE USED TO GETTING MORE THAN WHAT THEY HAVE. IS THIS WHERE THE PAPER AGGRESSION SHOULD BE ON THIS SCALE? SOME EMPLOYEES SAID I'M CLOSE TO THE MAXIMUM SUM NOT REALLY GETTING THAT PROGRESSION BECAUSE I'M AT THE MAX OF THE SCALE SO I ONLY GET TO MOVE WHEN THE SCALE MOVES. I DON'T GET MY OWN INDIVIDUAL INCREASE AND I JUST WANT TO MOVE AS THE PAY SCALE GETS BUMPED UP AS WELL. AND THE A LITTLE CONCERNED ABOUT THE BENEFITS PARTICULARLY THE TMR S IS IN PLEASE SAY WHY CAN'T WE HAVE THAT SAME SYSTEM OR IT'S A DISADVANTAGE CRITICALLY FOR MEMBERS HERE SAYING IT WAS A HARD DECISION BECAUSE IF THEY HAVE TMR S SOMEONE ELSE IT'S HARD TO SAY AM GOING TO GO TO A DIFFERENT SYSTEM. IT CAN BE OVER, BUT THAT IS SOMETHING WE'VE HEARD ABOUT HERE AND SOMETIMES IN THE SYSTEM IT'S NO OFFERED ELSEWHERE. SO THERE WER CONCERNS SHARED ABOUT THAT. ALL OF WHAT WE JUST HEARD WAS PERCEPTIONAL. THAT THIS IS HOW THEY FEEL. MOVING ON IS THE CURRENT SYSTEM FILINGS. THIS IS WHAT WE SAW LOOKING AT YOUR DATA. WE HAD STRENGTHS AND OF COURSE SOME THINGS THAT WE FELT COULD BE WORKED ON AS WELL. ONE OF THE STRENGTHS IS THE PAY STRUCTURE YOU HAVE IN PLACE. THERE IS A LOT OF CONSISTENCY AND HAS A VERY CLEAR PROGRESSION. IT WILL MOVE UP B FIVE PERCENT AND GO THROUGH WIT CONSISTENCY THROUGHOUT THE PAY PLAN AND THAT IS A MAJOR STRENGTH THAT ALLOWS YOU TO TARGET WHATEVER MARKET POSITION YOU WANT. SOME ORGANIZATIONS IF THEY HAVE ONE OR TWO PERCENT IT'S HARD TO PICK THE GRADE THA REALLY FITS. WHEN THEY HAVE A NICE CONSISTENT PROGRESSION YOU ARE ALWAYS ABLE TO FIND THE GRADE THAT YOU NEED. ONE OF TH OTHER THINGS WE FOUND IS FOR TH MOST PART YOU'VE DONE A GOOD JO OF SPACING EMPLOYEES OUT TO THEIR OWN PAY RANGE AND THAT LOOKS AT THAT PROGRESSION. THE TOWNSHIP DOESN'T HAVE ANY COMPRESSION YOU'VE DONE A GOOD JOB OF SPACING PEOPLE OUT SO THERE'S NOT A HUGE CLUSTER AT THE MINIMUM OR YOU SAY THIS PERSON HAS 10 YEARS TO WHY THEY STOPPED THE MINIMUM? OR THIS PERSON IS HERE WHY IS THAT NOT WHAT WE'RE LOOKING AT WITH THIS DATA? SO WHEN YOU TALK ABOUT TH WEAKNESSES THAT YOU WANT TO LOO AT, ONE OF THE WEAKNESSES HERE IT IS A LITTLE SUBJECTIVE THE SYSTEM WE HAD IN PLACE IS A LOT STRONGER. AND THIS IS THE WAY WE HAVE TO ABSOLUTELY DO THIS. THESE ARE THE THINGS THAT YOU NEED TO BE AWARE OF AND LOOKOUT FOR GOING FORWARD IN THE FUTURE ONE OF THE THINGS WE DID IS LOO AT THE INTERNAL EQUITY WITH COMPRESSION BETWEEN POSITIONS. WHEN SOMEONE SAYS I'M DOING SOMETHING IT'S HIGHER-LEVEL AND PAYS THE SAME AS SOMEONE OF A LOWER LEVEL WE SEE A LOT OF THAT. OVER THE YEARS IT IS UNAVOIDABLE AND THAT IS WHY THIS IS AND EXTREME PROBLEM.

DOES A LOT HERE FOR THIS ORGANIZATION AND THAT IS NOT NECESSARILY A BAD THING. IT REQUIRES ATTENTION TO DETAIL. T MAKE SURE THAT THEY HAVE THIS. MAYBE THEY SHOULD BUMP UP ONE GRADE AND AS YOU HAVE THAT SYSTEM IT TAKES SOME CONSISTENC TO MAINTAIN OVER TIME TO AVOID CREATING ADDITIONAL COMPRESSION MAYBE SOMEONE COMES IN FROM HIGHER OFFER TO PAY FOR THE

[01:30:05]

PRIVATE SECTOR YOU CAN BUMP THE UP TO KEEP THEM SO WE DID HAVE LOT OF CONVERSATIONS ABOUT THIS WITH HR AND AS WE DEVELOP THE SYSTEM THIS IS ONE OF THE THING WE FOCUSED ON NOT NECESSARILY A WEAKNESS IN A TRADITIONAL SENSE BUT SOMETHING TO KEEP YOUR EYE ON AND BE AWARE OF. I DID JUST KIND OF WANT TO MAKE A DIFFERENTIATION HERE WITH THE TWO TYPES THAT WE'VE TALKED ABOUT YOU THE RANGE COMPRESSION OF MOVING PEOPLE THROUGH THE PA RANGES AND MAKING SURE AS YOU START YOUR NOT STARTING AT THE MINIMUM BUT AS YOU'VE BEEN HERE TOWARD 5 TO 15 YEARS OF MOVING TOWARD THE MAXIMUM. AGAIN WE DI NOT SEE HUGE CONCERNS WITH THAT BUT THE RANK COMPRESSION BETWEE SUPERVISOR OR EMPLOYEE OR MORE COMPLEX TO LESS COMPLEX IS WHER WE SAW MORE OF THAT COMPRESSION TO PUT THE DEFINITIONS OUT THER TO REALLY ADDRESS THIS I KNOW PEOPLE SAY COMPRESSION AND IT CAN MEAN DIFFERENT THINGS I WANTED TO MAKE THAT CLEAR AND DIFFERENTIATE BETWEEN THOSE THINGS. TO START TALKING ABOUT THESE RESULTS THAT'S PROBABLY WHAT A LOT OF PEOPLE ARE LOOKIN AT YOU CAN SEE ON THE RIGHT HAN SIDE IT LOOKS LIKE WE GOT 27 PEERS RESPONDING TO THE SURVEY SO WE DID HEAR BACK FROM ROUGHL EVERYONE. OVER ON THE RIGHT-HAN SIDE THAT IS THE LISTING OF THE PEER ORGANIZATIONS THAT YOU'VE ALREADY APPROVED AND SEEN IN THIS PRESENTATION. AS WE KNOW AGAIN THE PEERS ARE NOT ALL LOCATED WITHIN TWO OR THREE MILES OF THE WOODLANDS. SO WE DID LOOK AT COST-OF-LIVING IT WAS NOT A TREMENDOUS SHIFT FOR COST-OF-LIVING BUT THERE WERE A FEW ADJUSTMENTS BY PERCENTAGE POINTS WE WILL SHOW YOU IN THE NEXT SLIDE. MOSTLY IT IS AROUN THE SAME REGIONAL. THERE ARE SOME SMALL DIFFERENCES HOWEVER DEPENDING ON THE AREAS WE PICKE FROM OTHER MARKETS AS WELL. OUTSIDE OF THE HOUSTON AREA POTENTIALLY SOME OF HIS PEERS MAY HAVE HAD A LARGER ADJUSTMEN FOR COST-OF-LIVING. WE DID LOO AT 64 DIFFERENT CLASSIFICATIONS WE HAVE AVERAGE RESPONSE OF MOR THAN NINE PER POSITION. AGAIN KEEPING IN MIND WITH 27 DIFFERENT ORGANIZATIONS THAT DOES NOT MEAN THAT WE ARE LOOKING FOR A MATCH OF EVERY POSITION FROM EVERY ORGANIZATIO EVERY TIME. WE KNOW AGAIN THAT LOCAL EFFORTS OFFER DIFFERENT AREAS. IF YOU HAVE A MORE ROBUS DEPARTMENT YOU MAY WANT TO COMPARE TO DIFFERENT GROUPS VERSUS WHERE YOU WOULD FROM ANOTHER DEPARTMENT. YOU MAY FIN SOME OF THE PEERS MATCH PERFECTLY WHEREAS THE OTHER DEPARTMENTS HR DOES NOT MATCH PERFECTLY. AND WE DON'T FEEL THAT THEY ARE NECESSARILY OPERATING THE SAME WAY. HAVING THAT EXTENSIVE PEER GROUP ALLOW US TO MAKE BETTER MATCHES AND B MORE SELECTIVE PICKING JOBS THA DO OPERATE UNDER THAT SAME TASK DUTY AND RESPONSIBILITIES ASKED OF THEM. TO EMPHASIZE AND AVERAGE IS VERY STRONG BUT THAT IS WHY IT IS NOT APPROACHING 25 MATCHES BECAUSE WE REALLY CAN'T GET TO THAT LEVEL IF WE WERE TO GO THAT HIGH. WITH THE MARKET RESULTS WE DIVIDED US UP BECAUS WE HAVE TWO DIFFERENT PAY PLANS WITH THE GENERAL EMPLOYEES WE FOUND THIS GAP PARTICULARLY AT THE BOTTOM OF THE PAY SCALE. ON THE LEFT-HAND SIDE OF THE SCREE THAT IS THE UNADJUSTED RESULT.

WE PUT IN A COST-OF-LIVING ADJUSTMENT AT ABOUT A THREE PERCENT DIFFERENCE IS ONLY A SMALL ADJUSTMENT. IT DOESN'T REALLY CHANGE THE ULTIMATE FINDINGS. FROM 10 PERCENT TO SEVEN PERCENT AT THE MINIMUM OF THE PAY SCALE. ESPECIALLY WHEN YOU LOOK AT THE GENERAL PAY SCALE EMPLOYES. SO IF YOU'RE LOOKING TO HIRE SOMEONE FROM MARKETING THIS IS THE AVERAGE PHYSICIAN. IT IS A LITTLE WIDE THAN THE MARKET SO WHAT THAT MEANS IS THEY HAVE THE EXACT SAME MINIMUM SO YOUR MAXIMUM WILL BE A LITTLE HIGHER THAN THEIRS ON AVERAGE. YOU HAVE A LITTLE BIT OF A WIDER PAY GAP AND THAT MEANS WHEN YOU GET TO THE TOP OF THE PAY SCALE YOU AR MORE COMPETITIVE WITH YOUR PAY ALREADY. SO TODAY WITH THAT COST-OF-LIVING ADJUSTMENT YOU'R AT 0.3 PERCENT AWAY FROM THE MARKET AVERAGE WHICH MEANS THAT YOU GET TO THE TOP OF THE SCALE AND YOU ARE WHERE YOU WANT TO BE. BUT YOU HAVE THIS AROUND 3 TO 4 AND EVEN FIVE. BUT IT IS THAT NEW EMPLOYEE YOU COME IN AND YOU WOULD LIKE IT. WITH A 1

[01:35:04]

PERCENT PAY RAISE BY GOING SOMEWHERE ELSE THAT CAN BE WHER IT IS TEMPTING. AGAIN LOOKING A THIS YOU ARE IN A BETTER POSITION WITH FIRE VERSUS GENERAL. AGAIN IT IS UNADJUSTE AND YOU'RE BASICALLY RIGHT AT THE AVERAGE AND MINIMUM OF THE SCALE COMING IN AT 4 1/2 TO 5 PERCENT OF THE MARKET. ONCE YOU HAVE THAT CERTIFICATION PAY YOU MOVE THROUGH THE TENURE AND YEA THAT MAXIMUM RANGE. WHEN WE ADJUST FOR RESULTS, IT'S ABOUT THREE TO EIGHT PERCENT SO YOU'R IN A STRONG POSITION ALREADY FOR BOTH FIRE AND GENERAL IT IS IMPORTANT TO KEEP IN MIND THAT THIS IS AVERAGE RESULTS. NOT EVERY POSITION RETURNS THIS WA WHICH MEANS THAT WE DID HAVE QUITE A NUMBER OF POSITIONS THA CAME IN LOWER THAN THIS. WE HAD SOME THAT CAME IN BETTER THOUGH SO THIS IS ALSO ONE MORE POINT THAT I WOULD MAKE HERE ON THE PUBLIC SECTOR MARKET THE PRIVAT SECTOR AGAIN WE ARE NOT SAYING THAT YOU HAVE TO MATCH THE PRIVATE SECTOR OR BE EXACTLY WHERE THEY ARE. WE HAVE THOSE DIFFERENT POINTS OF COMPARISON FOR REASON. IT DID FACTOR IN FO SOME POSITIONS WITH THE SOLUTIO BUT IT IS NOT THE SAME ONE IN COMPARISON MATCHING EXACTLY DOLLAR FOR DOLLAR. THE KEY RECOMMENDATIONS WE HAVE AT A HIGH LEVEL WE ARE RECOMMENDING ADOPTING ADJUSTED PAY SCALES.

WHAT WE FIRST SAW WE WERE OKAY WITH THE STRUCTURE LOOKING AT OTHER OPTIONS WHETHER WE CHANGE THE SCALE MORE DRAMATICALLY BUT WE THOUGHT YOUR SCALE HAD A LOT OF STRENGTH WITH IT. IT WAS HOWEVER TOO LOW. SO WE SAY WHAT IF WE KEEP THAT CONSISTENT RANG PROGRESSION AND MOVE IT TO A MORE MARKET RESPONSIVE PLACE.

MOVING UP MINIMUMS OF THE PAY SCALE TO MAKE SURE THAT YOU WIL BE MORE COMPETITIVE TO THE MARKET OVERALL. THAT IS THE FIRST THING THAT WE ARE PROPOSING A NEW PAY SCALE. IT WILL AGAIN MAINTAIN SOME OF THE SAME STRENGTHS BUT IT IS LOOKIN AT OTHER DIFFERENCES IN THE SCALE SIMILARLY FOR FIRE THE OVERALL STRUCTURE WILL BE VERY SIMILAR BUT THERE ARE SOME SLIGHT DIFFERENCES TO THAT SCALE. WHEN WE MADE ADJUSTMENTS WE HAD TO SIGN POSITIONS TO THA NEW PAY SCALE IN A MARKET COMPETITIVE WAY THOSE PHYSICIAN THAT WE FOUND TO BE AT THE HEAD OF THE MARKET WE DID NOT PROPOS THEY MOVE AS FAR. THOSE BELOW MARKET WE PROPOSE THEY MOVE FURTHER. SO IF YOU MOVE EVERY POSITION ACROSS THE TOWNSHIP TH SAME WAY IT'S NOT HELPFUL TO SOMEONE WHO IS 25 PERCENT OR YO MIGHT FEEL GREAT IF YOU'RE FIVE OR 10 PERCENT ABOVE SO WE WANTE TO DO TARGETED ADJUSTMENT RESPECTING INTERNAL EQUITY EXTERNAL EQUITY AND REFLECTING BACK ON THAT COMPOSITION WITH FACTORS FOR PRIVATE ON SOME OF THESE POSITIONS. THE FIRST BULLET DEALS WITH THE PAY PLAN AND THE SECOND ONE DEALS WITH PUTTING POSITIONS ON THE PAY PLAN. THE THIRD BULLET DEALS WITH PUTTING EMPLOYEES INTO THA NEW PAY SCALE THERE ARE A NUMBE OF OPTIONS THAT WE HAVE IN AND EFFORT OF FULL TRANSPARENCY TO GO THROUGH THE PROS AND CONS OF DIFFERENT OPTIONS BUT WE WENT YOU TO LOOK AT WHAT WE HAVE THA MAY BEST FIT WHAT YOU HAVE HERE THAT WE'VE DISCUSSED AND SHARED WITH HR LEADERSHIP. THERE ARE FIVE DIFFERENT OPTIONS ON THE SCREEN AND I'LL SORT OF GO THROUGH THE PROS AND CONS FOR EVERY OPTION FOCUSING MOSTLY ON OPTION NUMBER THREE WHICH IS TH RECOMMENDED OPTION WE HAVE. IT IS A LITTLE SMALL SO WE WILL COVER THE MAIN ITEMS HERE TO BRING IT TO THE MINIMUM IS THE FIRST AND MOST SENSIBLE OF ALL OPTIONS ALL THIS ALL OPTION DOE IS SAY IF YOU'RE NEW PAY SCALE IS CHANGED WITH A CLEAR CURRENT SALARY AND SEE IF YOU'RE MAKING MORE THAN THE MEDIAN OR NOT. BY ITS VERY VIRTUE A LOT OF PEOPLE ARE NOT GOING TO BE MOVED. IF YOUR SALARY IS 60,000 AND-YEAR-OLD MINIMUM IS 40,000 THE MINIMUM COULD MOVE UP TO 55 OR 60,000 AND YOU'RE STILL NOT GOING TO MOVE EVEN THOUGH YOUR PAY SCALE MOVE TREMENDOUSLY. SO IF YOU GO WITH THAT PAY SCALE IT'S DRAMATIC. IF THE PAYGRADE IS MOVING WITHOUT THEM IT WILL CAUSE SOME COMPRESSION ISSUES.

SOME POSITIONS WILL NOT BE THAT BIG OF A DEAL BUT OTHER POSITIONS IT COULD CERTAINLY CAUSE MORVEN ISSUE IT IS NOT REALLY WHAT WE ARE PROPOSING THOUGH. THE SECOND THIRD AND FOURTH OPTIONS HAVE CLASS PARIT HYBRID AND TENURE PARITY. THERE ARE THREE VERY SIMILAR OPTIONS THAT I WILL TALK ABOUT TOGETHER WITH THE RULES I'M ABOUT TO DESCRIBE ARE THE SAME FOR THREE BUT WE LOOK AT A DIFFERENT METRIC TO ADJUST EACH OPTION.

PARITY OPTIONS TOGETHER LOOK A ADJUSTING THOSE IN THE RANGE C

[01:40:04]

LOOK AT THE NEW PAY RANGE ASSIGNED TO THE EMPLOYEE AND YO SAY HOW SHOULD AN EMPLOYEE MOVE FROM MINIMUM TO MAXIMUM FROM TH SCALE? WE LOOKED AT A SET NUMBE OF YEARS SO LET'S SAY FROM ZERO TO MIDPOINT OR FROM MIDPOINT TO MAXIMUM HOW LONG SHOULD IT TAKE TO GET THERE? THE CLASS PARITY OPTION ONLY LOOKS AT THE NUMBER OF YEARS YOU HAVE IN YOUR CURRENT CLASSIFICATIONS. IF YOU PROMOTED YESTERDAY YOUR CLASS TIME IS ZERO. SO WE ARE SAYING THAT YOU CAN BE AT THE MINIMUM OF THE SCALE BECAUSE YOU JUST STARTED A NEW POSITION. THE STRENGTH OF THAT IS LOOKING AT THE MOST DIRECTLY RELATED EXPERIENCE FOR THE EMPLOYEE.

THEY HAVE TO LEARN ALL OF THIS. THEY WOULD BE THE MOST CAPABLE PERSON AND THEY'VE SHOWN THE ABILITY TO DO SOME OF THAT NOW.

THE REAL DOWNSIDE IS WE'RE NOT REFLECTING ANY THAT PREVIOUS EXPERIENCE. THE OPPOSITE OF THAT IS THE TENURE THAT LOOKS A ALL OF THE TIME YOU'VE HAD BUT DOESN'T DIFFERENTIATE THE TIME YOU HAVE IN YOUR CURRENT POSITION. AND IT IS EASY TO SEE THE STRENGTH AND WEAKNESS OF THAT. IT IS WONDERFUL AND IT'S NICE TO GIVE YOU FULL CREDIT FO EVERY SINGLE DAVE SPENT WITH TH TOWNSHIP OVERALL. BUT THIS ADVANTAGE IN THE SAME WAY IS THAT IF SOMEONE PROMOTED YESTERDAY INTO A NEW PAY SCALE THEY WILL ROCKET UP TO THE MAXIMUM PRETTY FAST. THEY'RE LEARNING NEW SKILLS AS A NEW MANAGER AND THEY MAY GET PAID MORE THAN SOMEONE WHO IS ALREAD BEEN AT THAT PAY SCALE FOR A LONG TIME. IT CAN WORK OUT WELL FOR EMPLOYEES BUT CAN ALSO CREATE SOME COMPRESSION OF ITS OWN. AND THAT IS THE STRENGTH THAT WE LIKE ABOUT THE HYBRID APPROACH. THE HYBRID APPROACH I A BLEND OF THE TWO AS YOU WOULD EXPECT FROM THE NAME. IT GIVES FULL CREDIT AND HALF CREDIT FOR YOUR TENURE. AND PLEASE BEEN A THE TOWNSHIP FOR 20 YEARS THAT PROMOTED YESTERDAY WOULD HAVE 1 YEARS OF HYBRID TIME BECAUSE WE CUT IT IN HALF AND SAY LOOK WE THINK WE SHOULD MOVE FOR THAT BUT WE DON'T WANT TO REWARD IT QUITE TO THE SAME DEGREE YOU CA LOOK AT DIFFERENT NUMBERS WITH THE PERCENTAGE OF CREDITS THAT YOU GIVE AS WELL. YOU CAN HAVE 25 PERCENT OF 33 OR WHEREVER YO LOOK. HALF CREDIT IS SIMPLY THE TYPICAL AND YOU CAN MOVE PEOPLE THROUGH THE SCALE THAT WAY. THI WE THINK DOES A BIT BETTER OF PLACING EMPLOYEES WHERE THEY SHOULD BE IT'S NOT THAT IT IS 100 PERCENT PERFECT FOR EVERY EMPLOYEE. WHENEVER YOU APPLY IN ADJUSTMENT TO HUNDREDS OF PEOPL AT A TIME THERE ARE EXAMPLES WE SAY WHAT ABOUT THIS ONE AND THA SOMETHING THAT THEY DO. DO WE HAVEN'T EQUITY ISSUE THAT MUST BE ADDRESSED? WITH THIS APPROAC WE DO LIKE THAT OVERALL THINKIN IT IS A STRONG APPROACH THAT WILL ADDRESS MOST CONCERNS. THE LAST ONE THAT WE WILL COVER IS THE RATIO APPROACH THAT IS NIC IN A WAY BECAUSE IT'S VERY MARKET FOCUSED. IT KEEPS EVERYONE IN THE SAME EXACT POSITION GOING FORWARD THAT THE ARE IN RIGHT NOW. RELATIVE TO THEIR PAYGRADE MIDPOINT. IF YOU'RE FIVE PERCENT BELOW NOW YOU WILL BE FIVE PERCENT THERE IF IT MOVED BY 10 PERCENT YOU WILL MOVE BY 10 PERCENT IF YOU ARE ABOVE YOUR MIDPOINT YOU WIL STAY ABOVE IT. IF YOUR 20 PERCENT BELOW ETC. SO THE STRENGTH OF THAT IS IT IS CONSISTENT TO THOSE EMPLOYEES I EACH SPOT AND IT DOESN'T LOOK A PROGRESSION. IF SOMEONE HAS ALREADY LOOKED AT THIS IT DOESN'T CORRECT FOR IT. THE OTHER THING IS IF YOU MOVE A PARTICULAR POSITION VERSUS THE MARKET SOMETIMES YOU SEE THAT EMPLOYEES ARE ALREADY SEVE RECEIVING MORE PAY OR BROUGHT I ABOVE THE MINIMUM ARE READY TO ACCOUNT FOR MARKET GAP. WE HEAR FROM THE TOWNSHIP AND HR THAT YOU HAD TO ADJUST HIRING RATES BECAUSE OF THE 10 PERCENT GAP SO FOR THOSE BROUGHT IN A LITTL HIGHER THEY WILL MAINTAIN A HIGHER POSITION EVEN THOUGH IT WAS MEANT TO ADDRESS THE ISSUE. SO IT CAN SPEND MORE MONEY THA IS NECESSARY IT CAN MOVE PEOPLE FURTHER THAN WE THINK THEY CAN GO WHICH IS A DOWNSIDE FOR THIS APPROACH. ALL OF THAT BEING SAI THAT'S WHY WE ARE SAYING THE HYBRID WILL MEET THE BEST FOR THE TOWNSHIP. ALL OF THAT BEING SAID HERE ARE SOME COSTS AND I EXPECT THE TENURE OR MOST EXPANSIVE APPROACHES OF THE HIGHEST DOLLAR AMOUNT GO LITTLE FURTHER THAN YOU NEED TO GO HERE. THE HYBRID PARITY IS A LITTLE LESS EXPENSIVE AND ON TH

[01:45:07]

VERY RIGHT-HAND SIDE YOU CAN SE A NUMBER THAT WILL PUT THIS INT CONTEXT. IT SHOWS A PERCENTAGE OF PAYROLL IT WOULD BE IMPACTED OR INCREASED LOOKING AT THESE COSTS. IT IS ABOUT A SIX PERCENT INCREASE TO THE PAYROLL COST AS OF TODAY. AND AGAIN LOOKING AT THE MARKET DIFFERENTIALS THAT WE SAW THERE IS 10 PERCENT ABOVE WHAT THE MINIMUM HAS AT ABOUT SIX OR SEVEN PERCENT WITH THE ADJUSTMENT. AND THAT SORT OF MAKES SENSE IN THAT REALM FOR WHAT WE ARE LOOKING AT. IT DOES SEEM LIKE THE NUMBER THAT WE WOULD NEED TO HIT. THAT IS THE NUMBER THAT WE FEEL REALLY TRUL BEST ADDRESSES THE MARKET AS WELL IS THE INTERNAL CONCERNS THAT YOU CAN SEE WITH THE PAY

SCALE. >> I HAVE A QUESTION.

>> GO AHEAD. >> I LEARNED A VALUABLE LESSON I'M NOT DOING ANYTHING UNTIL I FULLY UNDERSTAND IT NOW. AND THIS IS A LOT OF NUMBERS AND I KNOW WE HAVE INCREDIBLE STAFF YOUR TOP TO BOTTOM AND I WANT T MAKE SURE I SAY THAT LOUD AND CLEAR. BUT WE JUST DON'T UNDERSTAND THIS. WE DON'T UNDERSTAND THE PAY SCALE ON THE HYBRIDS IN THERE SO MUCH GOING ON HERE THAT WERE TRYING TO UNPACK BUT I WOULD LIKE TO HAVE IN EXECUTIVE SESSION TO REALLY KIND OF START COMPARING APPLES TO APPLES AND SHOWING US SOME REAL WORLD EXAMPLES BECAUSE I CAN'T ACT ON PULLING SOMETHING THAT I DON'T FULLY UNDERSTAND.

I DON'T LIKE THE WORD EQUITY EITHER I'M NOT A FAN OF THE WOR RECRUITMENT AND RETENTION IT IS FACTORED IN SOMEWHERE WITH

ISSUES THAT WE MIGHT HAVE? >> RECRUITMENT AND THIS WAS HER IT'S SOMETHING THAT WE TALKED T HR ABOUT AS WELL IT WAS INVOLVE WITH US LOOKING AT THESE POSITIONS SPECIFICALLY WITH THE MARKET AND FURTHER POSITIONED YOU HAVING TROUBLE RECRUITING FOR WE WANT TO MAKE YOU TO MAKE SURE YOUR RECRUITING SPECIFICALLY HERE AND THOSE SPECIFIC POSITIONS THEY LOOKED AT THESE MARKETS TO SAY LOOK WE'RE HAVING TROUBLE HERE WE DI FIND SOME ALIGNMENT WITH NUMBER WE FOUND IN THE DATA THEY PULLE THEMSELVES SO WE DID HAVE SEVERAL SPECIFIC CONVERSATIONS BUT IT DID ABSOLUTELY FACTOR IN TO WHERE WE PLACED THE POSITION IN THE SCALE AND I BELIEVE FROM THE CONVERSATIONS THAT WE HAVE HAD WE FEEL THAT THIS WOULD ADDRESS THOSE CONCERNS.

>> THIS IS A VERY EXTENSIVE REPORT AND THE FIRST TIME AS A BOARD THAT WE HAVE SEEN IT. IT WAS NOT INCLUDED IN OUR BOARD PACK AND I THINK WE CAN ALL AGREE OUR MOST VALUABLE ASSET O COURSE ARE THE EMPLOYEES. BUT T MAKE A RECOMMENDATION WITH BOTH DIRECTOR WHEN WOULD LIKE TO MOVED TO ACCEPT THIS REPORT I WOULD LIKE TO ASK ANGELA TO GIV US A FEW DAYS AND I KNOW DIRECTOR WATSON ALSO HAS A QUESTION.

>> SO I THINK THE INTENTION OF THE ENTIRE EXERCISE IS TO TAKE THIS STAT. WE WANT TO MAKE SURE THE STAFF IS HAPPY AND WELL COMPENSATED. I AM SURE AS YOU INDICATED IN YOUR SLIDES THERE IS A DISPARITY IN DIFFERENT POSITIONS. SOME COULD ARGUE IT'S EVEN ABOVE MARKET I DON'T THINK OUR INTENTION IS TO GO BACKWARDS FOR ANYONE. DO ANY IMPLEMENTATION SEVEN UNINTENDED CONSEQUENCE WHEREBY SOMEONE MIGHT BE ADJUSTED THE WRONG WAY ANY SALARY THEMSELVES. NOT A SINGLE PERSON WILL GO DOWN AS A RESULT OF THESE RECOMMENDATIONS THIS IS ALSO SOMETHING WE LOOKE AT WITH THE PAYGRADE. TYPICALLY IF SOMEONE IS 10 OR 15 PERCENT ABOVE MARKET WE LEAVE THEM AS CLOSE TO ZERO AS POSSIBLE AND LET THE MARKET CATCH UP TO THEM IN SOME CASES WE DO LOOK AT THE INTERNAL RELATIOSHIP BETWEEN THE POSITIONS AND WE MAY HAVE T GIVE THEM A SMALL ADJUSTMENT IF SOMEONE CAME UP SIGNIFICANTLY.

BUT CERTAINLY WE DO NOT DECREAS ANY INDIVIDUAL SALARIES WHATSOEVER. AND WITH THE PAY RANGES AS WELL WE ALWAYS TRY TO KEEP THEM ROUGHLY AT THE SAME LEVEL OR SLIGHTLY HIGHER BUT CERTAINLY NOT GIVING LARGE ADJUSTMENTS.

[01:50:07]

>> DO YOU TAKE IN TO CONSIDERATION MERIT PAY?

>> MERIT PAY IS SOMETHING THE TOWNSHIP WILL BE ABLE TO ENGAGE IN A SYSTEM LIKE THIS BUT IT IS NOT FACTORED IN WITH THESE

ADJUSTMENTS. >> FIRST OF ALL, THE INFORMATIO YOU HAVE PRESENTED IS WONDERFUL WE REALLY NEED TO DIG INTO THIS MORE. BUT UNFORTUNATELY I'VE HA TO DO A FEW THESE MYSELF SO I APPRECIATE THE COMPLEXITY OF THIS ISSUE AND THE EFFORT IT TAKES TO PUT SOMETHING LIKE THI TOGETHER BUT I AGREE WE DO NEED TO DIG IN ON A GROUP TO HELP GE WHERE WE NEED TO.

>> I ALSO HAVE A COUPLE OF QUESTIONS. I AM FASCINATED BY THIS. HOW OFTEN DO YOU THINK THIS WILL BE EVALUATED?

>> WE RECOMMEND THE TOWNSHIP LOOKS AT THE RANGES EVERY FEW YEARS. A SMALL ADJUSTMENT EVERY YEAR CAN HELP PREVENT LARGE ADJUSTMENTS LATER ON DOWN THE ROAD. THE RANGES CREEPING ALON THE WE WILL KEEP THAT IN PACE WITH THE MARKET. HOW MANY PEOPLE ARE AT THE TOP OF THE RANGE?

>> I DO NOT KNOW THAT. IT WASN' A HUMONGOUS NUMBER I'M THINKING IT WAS SOMEWHERE AROUND FIVE PERCENT OR SO BUT IT COULD'VE BEEN MORE THAN THAT I THINK IT WAS RATHER BELOW THIS BUT I

DON'T KNOW THE EXACT NUMBERS. >> AND IN THAT COMPRESSION WERE TALKING ABOUT DOES THAT DEAL WITH OVERTIME SUPERVISOR OR MORE? IS THAT WHERE SOME OF THAT COMPRESSION CAN COME FROM? REFERRING TO TONIGHT. IT IS SOMETHING WE ARE CAREFUL TO LOO AT IN PARTICULAR WE HEAR SOMETIMES WITH PUBLIC SAFETY THIS IS SOMETHING THAT CAN HAPPEN. WE SLOT PAY GRADES WE DO PAY ATTENTION TO THAT TO MAK SURE THERE IS ENOUGH SPACE THER BUT THAT IS NOT SPECIFICALLY WHAT I WAS REFERRING TO TONIGHT IT WOULD'VE BEEN ESSENTIALLY THOSE MOVING CLOSER BUT NOT NECESSARILY MAKING MORE IF YOU'RE DOING SIGNIFICANTLY MORE DUTIES AND MAKING FIVE PERCENT MORE AND STILL FEEL LIKE IT

NEEDS TO BE ADJUSTED. >> THESE ESTIMATES ARE RETROACTIVE? THESE RIGHT HERE ARE THE ANNUAL COSTS. THERE AR ADDITIONAL TAXES AND THINGS THA NEED TO BE FACTORED IN. BUT THI IS JUST A 12 MONTH COST. IF IMPLEMENTED TOMORROW THIS WOULD BE THE COST BY MAY 25TH OF 2024 IF THEY ARE IMPLEMENTED IN SIX MONTHS THIS WOULD BE THE COST O THE FIRST 12.

>> THERE IS A LOT TO ADJUST HERE. WE WILL BE WAITING TO MAK

THAT MOVE. >> SO THERE IS A MOTION ON THE FLOOR TO ACCEPT THE REPORT. IT HAS BEEN SECONDED BY DIRECTOR GIBBS. LET US ACT ON ACCEPTING THIS REPORT. ALL THOSE IN FAVOR ALL THOSE OPPOSED? THE MOTION PASSES. WE THANK YOU VERY MUCH FOR BEING HERE. THE OTHER MOTIO WAS APPROVED BY DIRECTOR FRANKS TO HAVE INPUT FROM THE BOARD TO WORK WITH STAFF AND LET THEM KNOW THAT RICHARD HAS A WEALTH OF KNOWLEDGE AND THEY HAVE

[11. Receive, consider and act upon Resolution No. 006-23 supporting Texas Department of Transportation's 2023 Transportation Alternatives Call for Projects (SH 242/Harper’s Landing pathway);]

AGREED TO WORK WITH SETH ON THIS. AS A REPRESENTATIVE COMIN BACK. IS THERE A MOTION FOR THAT?

>> I AM FINE WITH RICHARD DOING WHATEVER HE WANTS TO DO. MY CONCERN IS WE'VE SPENT A LOT OF MONEY WE'VE GONE TO EXPERTS WE

[01:55:01]

NEED TO TRUST THEM TO NOT BE SO MYOPIC OR REPORTING TO A LEVEL WHERE WE SPEND TIME WITH OUR WHEELS IN THE MUD AND NOT GO

ANYWHERE. >> IF A BOARD MEMBER ORBIT MEMBERS WANT TO MEET WITH YOU YOU ARE OPEN FOR THAT?

>> I WOULD LOVE TO MEET WITH YO EVER. I WOULD ALSO BE INTERESTE TO NOTE IF THERE'S INFORMATION WE CAN BRING BACK TO THE BOARD TO HELP MORE FULLY UNDERSTAND THE PLAN. WOULD YOU LIKE A COMPENSATION AT TOWNSHIP 101 THAT GIVES YOU THE BASICS OF WHAT WE HAVE TODAY? I AM JUST WONDERING IF THERE'S ANYTHING THAT WE COULD BRING BACK THAT MIGHT HELP TO UNDERSTAND MORE.

I WOULD LOVE TO DO THAT. >> IT IS A LOT OF INFORMATION.

THE FIRST TIME THAT WE'VE SEEN IT REALLY CALLING FOR EACH BOAR MEMBER TO RECEIVE A COPY OF WOULD BE ADVANTAGEOUS.

>> WOULD IT BE POSSIBLE IF YOU COULD GIVE A HISTORY OF PREVIOU ANALYSIS THAT COULD COME BEFORE THE BOARD AND ALSO HOW WE HAVE BEEN ADDRESSING RAISES OVER THE LAST THREE YEARS SO WE CAN HAVE

THAT HISTORY? >> WOULD YOU LIKE ME TO BRING THAT BACK OR WOULD YOU LIKE ME TO GO TO THAT OFF THE TOP OF MY

HEAD NOW. >> PLEASE BRING IT BACK.

>> OKAY. WE CAN ABSOLUTELY DO THAT.