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City Council Study Session - 10/17/05 Minutes - Page 14 three percent comparable range to other cities, rather than five percent less. Ms. Bacon further reviewed the proposed merit pay component in the plan that would allow for a maximum pay cap not to exceed 112% of the Stanton 5 Group average. Ms. Bacon reviewed a proposed policy for Council consideration for the merit pay component of the plan, its implementation and administration; and at a 5% levy increase, rather than the preliminary levy of7.5% as previously directed by Council. Ms. Bacon reviewed implementation costs for adjusting salaries of those below the recommended new starting pay and bringing everyone else into the system at the closest step to their current pay without decrease and without bringing staff in at a step above their years of service ($72,171); impacts to the tax- supported and non-tax supported programs; $22,000 funding from the contingency fund built into the 2006 budget; and criteria and implementation of a more competitive and well- rounded compensation package for market comparison. Discussion included identification of the contingency funds in the 2006 proposed budget; impact to union negotiations and mediation; percentage of employees participating in the City's health plan or cash equalization; employee support of the proposed pay plan and overall benefits; and the solidity of the City's health care benefits in comparison to the market. Ms. Bacon noted that staff would be seeking Council authorization at the October 24, 2005 regular business meeting for motions and/or resolutions adopting the proposed pay scale and merit pay plans outlined and discussed, as well as funding features and associated changes. 8. Discuss Staff Recommendation respecting a Recycling Recycling Vendor Vendor Recycling Coordinator Tim Pratt; Public Works Manager Duane Schwartz; and Finance Director Chris Miller, as members of the Review Team, were available to present rankings and staff recommendations for firms for residential recycling services. Mr. Pratt reviewed the background; process; variety of services;