9.g Report on Fire Department Compensation
Staff Report
Date of Meeting: May 15, 2018
To: City Council
From: Neil Soltis, Administrator
Re: Fire Department Compensation
Background: The 2018 budget for the Fire Department provides for an increase in the
compensation for the Fire Chief from $4,200 per year to $33,000 per year. The Council has
discussed the increase in compensation and job duties at previous work sessions and at the May
work session the Council was in consensus to direct staff to research a maximum stipend amount
and determine if this will allow Hinz more hours.
I have discussed the issue of compensation with Lida Bannick of Eckberg Lammers and her analysis
follows this report.
Issue: Should the Council approve Resolution 05-1-18-09 establishing Fire Department
Compensation that reflects the change in the stipend amount that is paid to the Fire Chief?
Proposal Details: The Resolution provides for the increase in the monthly stipend paid to the Chief
in recognition of the additional hours spent in Department administration and management.
Research on the change indicates that the Fire Chief will likely be a non-exempt employee under
the Fair Labor Stands Act and, consequently, will be eligible to receive overtime pay based on the
average wage per hour worked regardless if paid through salary, hourly wage or stipend. It should
be noted that the time spent by the Chief on Fire Relief Association activities are outside of the
compensation for the position since the Fire Relief Association is a separate organization from the
City.
Based on Ordinance 117 with establishes the Scandia Fire and Rescue Department and the
compensation resolution it is clear that all firefighters are part-time on-call employees. Attorney
Bannick notes in her research that Minnesota Statute 181.08 requires cities to pay their employees
on at least a semi-monthly basis. Consequently, we will need to transition the Fire Department
from being on a monthly payroll to the bi-weekly cycle for other City employees. Due to the Fair
Labor Standard Act and the potential for overtime, it will be necessary for the Chief to track hours
worked pursuant to the stipend being paid and to submit those with the biweekly payroll.
Fiscal Impact: The funds for the increase in compensation are provided for in the 2018 budget.
Options:
1. Approve Resolution 05-15-18-09 establishing Fire Department Compensation
2. Defer action pending additional information
Recommendation: On the issue of compensation I would recommend approval of Resolution 05-
15-18-09.
I continue to recommend that the job description for the Chief be updated to reflect the Council’s
expectations for the hours of work, duties and responsibilities, and performance expectations.