Loading...
9.b) Staff Report-Compensation Plan � t, � � ,'�\ �i-� �� �, �1 � J CANDIA Staff Report Date of Meeting: July 16, 2013 To: City Council From: Kristina Handt, Administrator Re: Compensation Plan Agenda Item #: 9.b) Background: At the March work session,the Council directed staff to begin preparing a grade and step pay plan. The plan was to include many steps with smaller increases. At the April work session the Council agreed that Columbus, Bayport, Rush City, Lindstrom, Newport and Chisago City would be used as comparable cities for the purposes of establishing the maximum market value for each job classification. Staff contacted those cities and used the information to create the proposed Appendix A to the Compensation Plan. Also at the April work session, staff provided a listing of point assignments for each position based upon the State Job Match Evaluation System. After contacting the comparable cities staff learned, that they do not include the temporary, seasonal positions in their pay plans. Instead what is most common is for the Council to establish a range for all seasonal workers (Chisago City for example is $8-12/hr, DOQ) and then have the Council determine the amount within that range at the time of hire. Therefore the seasonal positions were removed from the job classification and point system. At the June work session the Council reviewed the proposed grade and step plan tied to performance reviews and suggested the staff revisit merit pay plans. Also at this work session, the Council decided to take the fire department out of the step and grade plan and require them to seek separate approval for pay adjustments. At the July work session, the Council voted to place the step and grade plan on the July 16tn Council agenda. Issue: Should the City Council adopt the proposed compensation plan? Proposal Details: Included in your packet is the proposed City of Scandia Compensation Policy as attached to Resolution 07-16-13-03. It includes a brief introduction and notes the goals of the policy. The compensation structure is then described in more detail. Consistent with the comments made by the Council at the March work session, staff is proposing an 11 Step system where each step is equal to approximately 2%. Per the League of Minnesota Cities memo reviewed at the April work session, most cities set the steps at 2-5%. Additionally, the maximum rate for each grade was determined by taking the average of the maximum rates in the comparable cities for each position. Furthermore, the starting pay for each position is roughly 80% of the maximum rate. Again this was the figure suggested in the League memo. However, staff would note that most of the comparable cities had step plans that allowed for the position to reach the maximum pay rate within 8 years. If the City of Scandia chooses to start positions at a lower rate the Council should consider increasing the percentage between steps rather than adding additional steps given that the proposal already includes many more steps than the comparable cities. For example,the Council could decide that the starting pay would be at 75% of maximum but then staff would suggest 3% step increases and only 10 steps. Whenever possible, new employees would be hired at the minimum but could start as high as Step 4 if the Council approved. This would allow the Council to advertise a range for the position and possibly offer more than the minimum rate if an employee was bringing more experience to the position. An employee would be eligible for their first step increase after the six month probationary period, provided they received a satisfactory review from their supervisor, subject to Council approval. The policy also outlines actions to take to maintain the plan. Any updates to the plan or step scale would need to be approved by the City Council on an annual basis during the budgeting process. Implementation: The policy could become effective as soon as the Council adopts it at a regular meeting. I would propose those staff currently below the minimum of the proposed range would be placed at the minimum for their position effective on their next anniversary date. Employees whose current wages falls within the proposed range would be placed at the step closest to their current wage, without an employee receiving a decrease to their current wage. This wage increase would be effective on their next anniversary date. Fiscal Impact: If implemented as described above the impact to the 2013 budget would be approximately $1,350. The impact to the 2014 budget would be approximately $7,500. Options: 1) Approve Resolution 07-16-13-03 2) Amend the Resolution and then Approve. 3) Do not move forward with adopting the policy at this time. Recommendation: Option 1. CITY OF SCANDIA RESOLUTION NO. 07-16-13-03 ADOPTION OF CITY OF SCANDIA COMPENSATION PLAN WHEREAS,the League of Minnesota Cities provides a model compensation plan for Small Communities; and WHEREAS,The City Council of the City of Scandia desires to attract and retain qualified and responsible personnel; and WHEREAS, another goal of the Compensation Plan is to create and maintain internal equity between positions compliant with the Minnesota Local Government Pay Equity Act and all other applicable local, State and Federal laws and regulations; and WHEREAS,the City Council aims to accomplish these goals as efficiently and effectively as possible thereby being fiscally responsible to the interests of the taxpayer; and WHEREAS,the City Council on April 9, 2013 determined that comparable cities to be used in establishing pay ranges would be Bayport, Chisago City, Columbus, Lindstrom,Newport and Rush City. NOW, THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCANDIA, WASHINGTON COUNTY, MINNESOTA: that the City Council approves the attached City of Scandia Compensation Policy and Step Chart; and FURTHER, BE IT RESOLVED, that the plan be implemented at each employee's next anniversary date and those currently below the minimum step are placed at that step and other employees are placed at the step closest to their current wage without taking a decrease in compensation, upon receiving a satisfactory performance review. Adopted by the Scandia City Council this 16t" day of July, 2013. Randall Simonson, Mayor ATTEST: Kristina Handt, Administrator/Clerk Attachment A City of Scandia Compensation Policy: The City of Scandia intends to establish, administer, maintain and regularly update an internal job evaluation hierarchy that is consistent with the Local Government Pay Equity Act. The city also intends to establish, administer, maintain and regularly update a pay structure that is appropriate to the breadth and depth of services being offered to and provided for the community being served and is also affordable within available resources. Finally, the city intends to maintain supplemental benefits (insurance, holiday/paid time off schedules, etc)that are competitive and also affordable within available resources. This policy establishes the guidelines for all city positions with the exception of elected officials and temporary or seasonal positions. Compensation for seasonal and temporary employees will be set by the City Council at the time of hire, or on an annual basis. This policy is directed at three primary goals: ➢ To attract and retain qualified and responsible personnel for the positions covered under this policy; ➢ To create and maintain internal equity between positions compliant with the Minnesota Local Government Pay Equity Act and all other applicable local, State and Federal laws and regulations; and ➢ To do so efficiently and effectively thereby being fiscally responsible to the interests of the taxpayer. Compensation Structure: Compensation is based on wage/salary grades and steps within the salary grade. For any position subject to this policy, compensation must be assigned using an eleven-step grid within each salary grade, with an increase of 20% from the minimum to the maximum step equally distributed among these steps. In determining or evaluating compensation levels, the City Administrator must maintain a schedule of comparative compensation amounts for all positions covered under the policy. The City Council will determine the appropriate market to be used in developing this schedule and in supplemental compensation reviews. A new employee must be hired at the pay grade minimum whenever possible. The City Administrator or appropriate department head may recommend the new employee be hired at a rate up to and including Step 4 of the pay grade for his/her classification, subject to approval by the City Council. A probationary employee may advance to the next pay step after satisfactorily completing six months of employment which meets performance expectations, subject to approval of the City Council. Every year thereafter, subject to approval by the City Council, on the employee's anniversary date, an employee may advance to the next pay step after satisfactorily completing another year of employment which meets the performance expectations until he or she reaches the grade maximum. Determination of satisfactory , performance must be recommended by the immediate supervisor on forms prescribed by the City Administrator and subject to final approval of the City Council. Actions Taken to Review, Update and Maintain the Plan: Elements of the plan will be reviewed annually to determine the degree o which it remains consistent with the city's total compensation philosophy. Actions to be taken may include: 1. Review, verification, and any required updating of job descriptions for all positions covered by this policy. 2. Review, verification and any required updating of job evaluations on all positions covered by this policy, following established reclassification policies and procedures. 3. Review, verification and consideration of current market survey data collected from the cities selected for comparison, ensuring that there are no questionable data that may give an incorrect pattern of pay for one or more positions. 4. Review and consideration of appropriate changes to the established base pay structure based on patterns of current market survey data, ensuring that there will be continuing integrity in administration of the current or revised pay structure. 5. Review and consideration of changes to the city's supplemental benefits covering paid time off. 6. Review and consideration of required and/or appropriate changes to the written description of the plan. The pay grades and rates established by this policy must be annually confirmed by the City Council through adoption of the budget and resolution establishing the grades and steps for each job classification. General Provisions: Nothing within this policy is a guarantee of employment and compensation, and nothing is to be construed as a commitment to continue the City of Scandia Compensation Policy for mare than one calendar year at a time. All components of this policy are set forth as guidelines to assist in establishing appropriate compensation. The provisions of this policy supersede all other compensation considerations. Compensation schedules will be maintained and updated as appendices to this policy in accordance with policy provisions. � Attachment B (see attached) City of Scandia Compensation Policy: The City of Scandia intends to establish, administer, maintain and regularly update an internal job evaluation hierarchy that is consistent with the Local Government Pay Equity Act. The city also intends to establish, administer, maintain and regularly update a pay structure that is appropriate to the breadth and depth of services being offered to and provided for the community being served and is also affordable within available resources. Finally, the city intends to maintain supplemental benefits (insurance, holiday/paid time off schedules, etc)that are competitive and also affordable within available resources. This policy establishes the guidelines for all city positions with the exception of elected officials and temporary or seasonal positions. Compensation for seasonal and temporary employees will be set by the City Council at the time of hire, or on an annual basis. This policy is directed at three primary goals: ➢ To attract and retain qualified and responsible personnel for the positions covered under this policy; ➢ To create and maintain internal equity between positions compliant with the Minnesota Local Government Pay Equity Act and all other applicable local, State and Federal laws and regulations; and ➢ To do so efficiently and effectively thereby being fiscally responsible to the interests of the taxpayer. Compensation Structure: Compensation is based on wage/salary grades and steps within the salary grade. For any position subject to this policy, compensation must be assigned using an eleven-step grid within each salary grade, with an increase of 20% from the minimum to the maximum step equally distributed among these steps. In determining or evaluating compensation levels, the City Administrator must maintain a schedule of comparative compensation amounts for all positions covered under the policy. The City Council will determine the appropriate market to be used in developing this schedule and in supplemental compensation reviews. A new employee must be hired at the pay grade minimum whenever possible. The City Administrator or appropriate department head may recommend the new employee be hired at a rate up to and including Step 4 of the pay grade for his/her classification, subject to approval by the City Council. A probationary employee may advance to the next pay step after satisfactorily completing six months of employment which meets performance expectations, subject to approval of the City Council. Every year thereafter, subject to approval by the City Council, on the employee's anniversary date, an employee may advance to the next pay step after satisfactorily completing another year of employment which meets the performance expectations until he or she reaches the grade maximum. Determination of satisfactory performance must be recommended by the immediate supervisor on forms prescribed by the City Administrator and subject to final approval of the City Council. Actions Taken to Review, Update and Maintain the Plan: Elements of the plan will be reviewed annually to determine the degree o which it remains consistent with the city's total compensation philosophy. Actions to be taken may include: 1. Review, verification, and any required updating of job descriptions for all positions covered by this policy. 2. Review, verification and any required updating of job evaluations on all positions covered by this policy, following established reclassification policies and procedures. 3. Review, verification and consideration of current market survey data collected from the cities selected for comparison, ensuring that there are no questionable data that may give an incorrect pattern of pay for one or more positions. 4. Review and consideration of appropriate changes to the established base pay structure based on patterns of current market survey data, ensuring that there will be continuing integrity in administration of the current or revised pay structure. 5. Review and consideration of changes to the city's supplemental benefits covering paid time off. 6. Review and consideration of required and/or appropriate changes to the written description of the plan. The pay grades and rates established by this policy must be annually confirmed by the City Council through adoption of the budget and resolution establishing the grades and steps for each job classification. General Provisions: Nothing within this policy is a guarantee of employment and compensation, and nothing is to be construed as a commitment to continue the City of Scandia Compensation Policy for more than one calendar year at a time. All components of this policy are set forth as guidelines to assist in establishing appropriate compensation. The provisions of this policy supersede all other compensation considerations. Compensation schedules will be maintained and updated as appendices to this policy in accordance with policy provisions. M Q1 � �i � O 111 ri 01 N � U'1 � � � �--I �-i N N M M � �"� Q V? t/� t/} t/? t�/? '� t�/� � N lD N lD V1 � I� t0 � 00 Ct e-1 N M 01 I� �--I 00 N � � N N M Q �--I N N n'1 e-� � 01 � � t/� t/? t/� t/� ,V '� t�/} N 01 00 01 00 I� M � � Q1 lp �11 M �--I N � � N N M Ol � I� N N L? �l/? i/? lD L? 00 +� t/> t/? N eM-� �r1 N 01 tD �M O fl- � N N c'A 00 � V1 N t/� �t/? �/? �/? lD t/? 00 +� t/1 V? N n �-M-I � N N � N Q a-^-I N N M I� � � � � � � � � � � N N N N � Q1 O O � I� M l� O I� 1� lD I� O N * �--� 00 � � Q c-I N N 3E M Ln M N U1 t/? i/? </? iF �/} lD V? 00 �"' j i/? t/1� N Op a--I O1 0 N Ol N e-1 M O M o0 � O �--i rn �n �--i 0 Q .-^i �N N � M � M O � �/? t/? t/T N t/? lD t/? 00 � N * � � V u1 rl l0 ,�N, a--I � tD � (n I� Ol � � �l'f a-i tD Q � �O Q1 .--� O N �0 M y O. �--I a-i N M M M Q1 N � t/� t/? V? t/} lD V? I� N t/} V} a N N Cf �--� M �--� I� X � V1 O o0 � � O 'a M t0 01 r-I Oi � I� � C Q- c-I �--I N N N M I� � N V? N V} t/} lD V} I� fl. N i/� i/? C]. Q O .-�-� l0 N Q1 tD o0 N tD 01 O 01 ^ lD N Q �--I r1 N N O M l0 � V? t/? t/T V} lD t/? 1� N � � � I� N l0 O O1 CO l0 I� �„i � 00 O o0 � M � Q t/? t/1� L? �/'F Lf1 t/T I� N �(/1� i/? � � M 00 O M N �N � M i c�-i � a-�-I N 00 M M Y i/? t/? �(/1 t/1 L�1 �/? I� N �(/? i/1 � a-i N M � Lf1 �O I� 00 Ol O '� �6 � M � � �p Q1 � M v v � L i N O N t!� �' = fp � L Ol N +�+ � N v O v � vf p_ Q C � � � � L N � Q °' -a g � N '� v ,.% }' c c � � co � c. v � a�i >. a O O O O �`— LL � O � O U