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8.e Classification and Compensation StudySCANDIA DATE: April 14, 2020 TO: Honorable Mayor and City Council Members FROM: Ken Cammilleri, City Administrator RE: 2019 Wage Study Implementation The first iteration of the 2019 wage study was presented to the City back in April of 2019. At that time there were three principal omissions that prevented the study's potential implementation. The first issue was that Fire Chief Position was not included in the study. It is unclear why this was done as City records indicate that as of July 1, 2018, this position was established as a regular part-time position with 1,248 hours per year. The second issue centered on the evaluation of job duties and responsibilities of the Deputy Clerk position. I completed an evaluation of the duties and responsibilities of the deputy clerk over the last 5 years. My conclusions indicated that this position was misclassified at a grade much lower than it should be placed at. Rather than a class of Deputy Clerk, the position is most reflective of the duties and responsibilities of a City Clerk (a job description has been included for your consideration). Last missing piece of information was the calculated employer costs towards retirement, Medicare, and Medicaid, which in select cases were significantly impactful on budgeted expenses. The calculations were completed on April 4 of 2020. On February 28th of this year, I received updated information regarding the Fire Chief and City Clerk positions. Both the reevaluated job description indicated that the Deputy Clerk position should be re -classed to City Clerk which will also include a significant change in grade. The new City Clerk class points at 342.5, or a Grade 12 on the pay plan previously recommended for the City in 2019 as part of the study, which is a significant change in grade from 8 as the first version of the study suggested. With approval of the job description change, this position will fall under FLSA Exempt status which will shift from hourly to salary. This grade placement was also verified by our consultant against select comparable wages available in the League of Minnesota Cities' (LMC) database for 2020. The Fire Chief position after being evaluated received 593 points. This places the position at Grade 18 on the pay plan included in the study. The position will continue as FLSA Non -Exempt or at an hourly rate. This grade placement was also verified by our consultant against select comparable wages available in LMC's salary and compensation database for 2020. As a result of updates to the wage and compensation study, the study's findings now indicate that adjustments are likely needed for the following positions: Fire Chief, City Clerk (formerly Deputy Clerk), and Public Works Director. The City's other position remain within 5% of the compensation levels of the study and do not require the City to consider adjustments. Implementation of this study would require the City Council to approve budget amendments including a transfer from the City's General Capital Fund to cover the difference that was not originally included within the 2020 operational budget. The following is breakdown of the options and costs associated with implementation. City of Scandia 14727 209th St. N. PO Box 128, Scandia, Minnesota 55073 Phone (651) 433-2274 Fax (651) 433-5112 http://www.ci.scandia.mn.us Page 1 of 3 All of the following options include $6,100 which was omitted from the 2020 budget for the city's share of retirement contributions to the Public Employee's Retirement Association (PERA) for the Fire Chief Position. This cost has been included in the above figures as the City is still responsible to make this contribution regardless of a change in compensation. Option 1 Option 1 involves implementing the study results by adjusting employee wages which currently fall below the minimum of the proposed range for their position to the minimum of the wage schedule range. Or, more simply moving the affected employee's wage to the first step within their respective grade. Implementation may be done retroactively to calendar year or the employee's anniversary date that is currently being used on the existing step scale. This strictly includes adjustments for the 3 positions. The cost of implementation at calendar year (or January 1St) for 2020 is $47,600 of which $45,200 would impact the General Fund 101 (and will require a transfer from the General Capital Fund (401).) The impact on the enterprise fund will be $2,400 and will not require a budget amendment. or The cost of implementation at this year's anniversary date is $17,800 of which $17,700 would impact the General Fund 101 (and will require a transfer from the General Capital Fund (401).) $100 is the anticipated impact on enterprise funds. Option 2 Option 2 assumes the implementation of Option 1 and moves the 3 positions that are out of range to their next closest step based on the relationship with their current wage. The cost of implementation at calendar year (or January 1st) for 2020 is $45,900 of which $43,500 would impact the General Fund 101 (and will require a transfer from the General Capital Fund (401).) The impact on the enterprise fund will be $2,400 and will not require a budget amendment. or The cost of implementation at this year's anniversary date is $17,900 of which $17,700 would impact the General Fund 101 (and will require a transfer from the General Capital Fund (401).) $200 is the anticipated impact on enterprise funds. City of Scandia 14727 2091h St. N. PO Box 128, Scandia, Minnesota 55073 Phone (651) 433-2274 Fax (651) 433-5112 http://www.ci.scandia.mn.us Page 2 of 3 Option 3 Option 3 assumes the implementation of options 1 and 2, but also places employees at their corresponding years of service on the pay scale. The cost of implementation at calendar year (or January 1st) for 2020 is $53,000 of which $49,000 would impact the General Fund 101 (and will require a transfer from the General Capital Fund (401).) The impact on the enterprise fund will be $4,000. or The cost of implementation at this year's anniversary date is $19,600 of which $19,300 would impact the General Fund 101 (and will require a transfer from the General Capital Fund (401).) $300 is the anticipated impact on enterprise funds. Consideration of Approving Reclassification of Deputy Clerk to City Clerk All of the options above have been calculated based on the reclassification of this position. After a complete review of current and historical responsibilities of Deputy Clerk position, it is clear that this position has evolved over time to essentially fulfill the City Clerk functions of the City over multiple administrations of the City. Although the City Administrator retains this title, nearly all of these functions have been fulfilled by the Deputy Clerk. The Administrator and our consultant recommend the Council consider approval of the attached amended job description and the reclassification of this position. Should the Council opt to not proceed with the reclassification of this position, calculations are prepared to implement each step by calendar year or anniversary date at the deputy clerk grade. If this option is taken, the deputy clerk position should be at a grade that matches a public works maintenance worker. This finding was also provided by the consultant. This would result in a grade adjustment from 8 to 9. Administrator's Recommendation I recommend the Council implement Option 2 at anniversary date. I believe this is the best option because it is most consistant with existing practice and has the least fiscal impact on this fiscal year. City of Scandia 14727 209th St. N. PO Box 128, Scandia, Minnesota 55073 Phone (651) 433-2274 Fax (651) 433-5112 http://www.ci.scandia.mn.us Page 3 of 3 Proposed 2020 Grade and Step Scales Title !Anniversary Date 1 Yrs of 1 Service % of Year Adjusted @ 1 Current Pay 1 Ann Date Rate i Hours; i Cur Est. Sal 1 S i FTE 1 Points Grade; 1; 2; 3; Step @ Hourly 4; 5; Rate 6; 7; 8; 9 Office Assistant - PT 19/17 i0.521 33.43 28.77%1 16.101 9801 15778.001 33488.001 127.5 41 16.651 17.231 17.841 18.461 19.111 19.781 20.471 21.181 21.93 Fire Chief 50179.82 Treasurer - PT 11/12 i8.001 66077.24 96.71%1 21.981 7501 16485.001 45718.401 170 61 18.891 19.551 20.231 20.941 21.671 22.431 23.211 24.031 24.87 0 T Deputy Clerk 110/1 i6.001 404.42 24.93%1 24.421 20801 50793.601 50793.601 242.5 91 22.811 23.611 24.441 25.291 26.181 27.091 28.041 29.021 30.04 12.63 Maintenance Worker 1003.03 Fire Chief 1 50179.82 36004.80 i20801 0 i i250 8505.48 91 22.811 23.611 24.441 25.291 26.181 27.091 28.041 29.021 30.04 1 City Clerk i1 -Oct 1 -57.71 24.93%1 24.421 20801 50793.601 50793.601 342.5 121 27.561 28.521 29.521 30.551 31.621 32.731 33.871 35.061 36.29 -930.82 Director of Public Works 112/6 i4.001 -13.50 6.85%1 31.641 20801 65811.201 65811.201 540 171 37.751 39.081 40.441 41.861 43.321 44.841 46.411 48.031 49.72 Fire Chief 17/1 7.001 50.14%1 28.851 12481 36004.801 60008.001 593 181 40.211 41.621 43.071 44.581 46.141 47.751 49.431 51.161 52.95 Ci Administrator 110/1 0.481 24.93%1 43.271 20801 90000.001 90000.001 683 191 42.821 44.321 45.871 47.481 49.141 50.861 52.641 54.481 56.39 VvUr pomq Diffrence to Est. Salary at step points Title Min % Diff Mid % Dif Max % Diff Office Assistant - PT 16317.22 -3.42% 18724.38 -18.67% 21486.66 -36.18% Treasurer -PT 14163.82 14.08% 16253.31 1.41% 18651.05 -13.14% Deputy 47449.47 6.58% 54449.36 0 62481.8 155.12 Maintenance Worker 47449.47 33.43 54449.36 11.63 9.62 62481.89 620.91 City Clerk 57316.57 -12.84% 65772.08 -29.49% 75474.98 -48.59% Director of Public Works 78528.67 -19.32% 90113.45 -36.93% 103407.26 -57.13% Fire Chief 50179.82 -39.37% 57582.50 -59.93% 66077.24 -83.52% Citv Administrator 89069.181 1.03%1 102208.93 -13.57% 117287.10 -30.32 Option 1 Difference Move to Step 1 from Current Salary Step Est Title Ste(yrs-) Salary Cur Est. Sala % Dif Hold Yrs. Imp. Dif Imp Dif @ anniversary day Additional Costs Calendar Year PERA FICA MEDFICA Additional Costs Anniversary Date PERA FICA MEDFICA Total Comp Calendar Anv Office Assistant - PT 1 16317.217 15778.00 -3.42% 0 539.22 155.12 40.44 33.43 7.82 11.63 9.62 2.25 620.91 178.62 Treasurer - PT 1 14163.823 16485.00 14.08% 5 -2321.18 -2244.86 20.91 4.89 24.46 20.22 4.73 388.26 375.50 Deputy Clerk Deputy Clerk 7 58327.513 50793.60 -14.83% 3 7533.91 1878.32 (Pay equity adto ad e) 565.04 467.10 109.24 140.87 116.46 27.24 8675.30 2162.88 City Clerk 1 57316.572 50793.60 -12.840/, 0 T 6522.97 1626.28 489.22 404.42 94.58 121.97 100.83 23.58 7511.20 1872.66 Director of Public Works 1 78528.67 65811.20 -19,32% 0 12717.47 871.06 953.81 788.48 184.40 65.33 54.01 12.63 14644.17 1003.03 Fire Chief 1 50179.82 36004.80 -39.37% 0 14175.02 7106.93 8505.48 878.85 205.54 7307.44 440.63 103.05 23764.89 14958.05 City Administrator 1 89069.181 90000.00 1.03% 1 -930.82 -232.07 -69.81 -57.71 -13.50 -17.41 -14.39 -3.36 -1071.84 -267.23 Option 2 Move to Next Closest Step Title Ste s. Cur Est. Salary % Dif Hold Yrs. Imp. Dif Imp Dif @ acruversairy, day Additional Calendar Year PERA Costs FICA MEDFICA Additional Costs Anniversary Date PERA FICA MEDFICA Total Comp Calendar Anv Office Assistant - PT 1 16317.217 15778.00 -3.42% 539.22 155.12 40.44 33.43 7.82 11.63 9.62 2.25 620.91 178.62 Treasurer - PT 6 16822.178 16485.00 -2.05% 337.18 326.09 25.29 20.91 4.89 24.46 20.22 4.73 388.26 375.50 Deputy Clerk 7 58327.513 50793.60 -14.83% 7533.91 1878.32 (Pay equity ad' to ade) 565.04 467.10 109.24 140.87 116.46 27.24 8675.30 2162.88 City Clerk 1 57316.572 50793.60 -12.840/, 6522.97 1626.28 489.22 404.42 94.58 121.97 100.83 23.58 7511.20 1872.66 Director of Public Works 1 78528.67 65811.20 9.87% 12717.47 871.06 953.81 788.48 184.40 65.33 54.01 12.63 14644.17 1003.03 Fire Chief 1 50179.82 36004.80 -39.37% 14175.02 7106.93 8505.48 878.85 205.54 7307.44 440.63 103.05 23764.89 14958.05 Ci Administrator 1 89069.181 90000.00 1.03% -930.82 -232.07 -69.81 -57.71 -13.50 -17.41 -14.39 -3.36 -1071.84 -267.23 Option 3 Difference to current wage at anniversary step Additional Costs Additional Costs Total Comp Step Est Calendar Year Anniversary Date Title Ste s. Salary Cur Est. Sal % Dif Hold Yrs. Imp. Dif. Imp Dif @ anniversary day PERA FICA MEDFICA PERA FICA MEDFICA Calendar Anv Office Assistant - PT 1 16317.217 15778.00 3.30% 539.22 155.12 40.44 33.43 7.82 11.63 9.62 2.25 620.91 178.62 Treasurer - PT 8 18020.337 16485.00 8.52% 1535.34 1484.86 115.15 95.19 22.26 111.36 92.06 21.53 1767.94 1709.82 Deputy Clerk 6 56355.085 50793.60 9.87% 5561.49 1386.56 (Pay equity adj to grade) 417.11 344.81 80.64 103.99 85.97 20.11 6404.05 1596.63 City Clerk 111w r 57M.572 50793.6 0 6522.97 1626.28 489.22 404.42 94.58 121.97 100.83 23.58 7511.20 1872.66 Director of Public Works 4 87066.137 65811.20 24.41% 21254.94 1455.82 1594.12 1317.81 308.20 109.19 90.26 21.11 24475.06 1676.37 Fire Chief 2 51936.113 36004.80 30.67% 15931.31 7987.48 3895.21 987.74 231.00 7432.57 495.22 115.82 21045.27 16031.10 City Administrator 1 89069.181 90000.00 -1.05% -930.82 -232.07 -69.81 -57.71 -13.50 -17.41 -14.39 -3.36 -1071.84 -267.23 Employer Contribution Rates Allocation % PERA GENERAL. 7.50% Dr. Clerk City Clerk PWD Fire Chief PERA Pub Safety. 16.95% 101-41000 100.0% 100.0% FICA 6.20% 101-42200 100% MEDFICA 1.45% 101-43000 83.50% 602-43210 12.50% 612-43210 4.00% Fire Chief Salary before/after adversary 7/1 Opt 1 Opt 2 Opt 3 Before 17953.0784 17953.07836 17953.07836 After 25158.6497 25158.64967 25896.91137 Total 43111.728 43111.72803 43849.98973 PWD Allocation wage Opt 1 Cal Opt 1 Anv Opt2 Cal Opt 2 Anv Opt3 Cal Opt3 Anv 83.50% 10619.09 727.33 10619.09 727.33 17747.87 1215.61 12.50% 1589.68 108.88 1589.68 108.88 2656.87 181.98 4.00% 508.70 34.84 508.70 34.84 850.20 58.23 PWD Allocation PERA Opt 1 Cal Opt 1 Anv Opt2 Cal Opt 2 Anv Opt3 Cal Opt3 Anv 83.50% 796.43 54.55 796.43 54.55 1331.09 91.17 12.50% 119.23 8.17 119.23 8.17 199.27 13.65 4.00% 38.15 2.61 38.15 2.61 63.76 4.37 PWD Allocation FICA Opt 1 Cal Opt 1 Anv Opt2 Cal Opt 2 Anv Opt3 Cal Opt3 Anv 83.50% 658.38 45.09 658.38 45.09 1100.37 75.37 12.50% 98.56 6.75 98.56 6.75 164.73 11.28 4.00% 31.54 2.16 31.54 2.16 52.71 3.61 PWD Allocation MEDFICA Opt 1 Cal Opt 1 Anv Opt2 Cal Opt 2 Anv Opt3 Cal Opt3 Anv 83.50% 153.98 10.55 153.98 10.55 257.34 17.63 12.50% 23.05 1.58 23.05 1.58 38.52 2.64 4.00% 7.38 0.51 7.38 0.51 12.33 0.84 2020 Budget Amendments w/ new City Clerk Classification 2020 Option 1 - Move to Minimum Ste 1 Current DIF Added to Bud % change DIF Added to Bud % change Type Dept. Fun Dept. Item Account Description Budget Opt 1 Cal Opt 1 Cal Budget Entry in budget Opt 1 Am, Opt 1 Am, Budget Entry in budget R General Fund 101 41000 39200 101-41000-39200 Interfund Operating Transfer 0 45,204 45,200 45,200 100.0% 17,668 17,700 17,700 100.0% E Capital Fund 401 41000 720 101-41000-720 Transfer Out 45,204 45,200 45,200 100.0% 17,668 17,700 17,700 100.0% E admin 101 41000 101 101-41000-101 Regular Wages & Salaries 162,400 6,523 6,500 168,900 3.8% 1,626 1,600 164,000 1.0% E admin 101 41000 121 101-41000-121 PERA Coord. Employer Contribu. 12,000 489 500 12,500 4.0% 122 100 12,100 0.8% E admin 101 41000 122 101-41000-122 FICA Employer Contribution 10,100 404 400 10,500 3.8% 101 100 10,200 1.0% E admin 101 41000 126 101-41000-126 MEDICARE Employer Contribution 2,400 95 100 2,500 4.0% 24 0 2,400 0.0% E Fire 101 42200 101 101-42200-101 Regular Wages & Salaries 110,000 14,175 14,200 124,200 11.4% 7,107 7,100 117,100 6.1% E Fire 101 42200 121 101-42200-121 PERA Coord. Employer Contribu. 0 8,505 8,500 8,500 100.0% 7,307 7,300 7,300 100.0% E Fire 101 42200 122 101-42200-122 FICA Employer Contribution 7,300 879 900 8,200 11.0% 441 400 7,700 5.2% E Fire 101 42200 126 101-42200-126 MEDICARE Employer Contribution 1,700 1,906 1,900 3,600 52.8% 103 100 1,800 5.6% E DPW 101 43000 101 101-43000-101 Regular Wages & Salaries 186,100 10,619 10,600 196,700 5.4% 727 700 186,800 0.4% E DPW 101 43000 121 101-43000-121 PERA Coord. Employer Contribu. 2,600 796 800 3,400 23.5% 55 100 2,700 3.7% E DPW 101 43000 122 101-43000-122 FICA Employer Contribution 14,600 658 700 15,300 4.6% 45 0 14,600 0.0% E DPW 101 43000 126 101-43000-126 MEDICARE Employer Contribution 2,800 154 200 3,000 6.7% 11 0 2,800 0.0% E Anderson/Eric 602 43210 101 602-43210-101 Regular Wages & Salaries 20,100 1,590 1,600 21,700 7.4% 109 100 20,200 0.5% E Anderson/Eric 602 43210 121 602-43210-121 PERA Coord. Employer Contribu. 1,600 119 100 1,700 5.9% 8 0 1,600 0.0% E Anderson/Eric 602 43210 122 602-43210-122 FICA Employer Contribution 1,300 99 100 1,400 7.1% 7 0 1,300 0.0% E Anderson/Eric 602 43210 126 602-43210-126 MEDICARE Employer Contribution 400 23 0 400 0.0% 2 0 400 0.0% E Uptown 612 43210 101 612-43210-101 Regular Wages & Salaries 7,400 509 500 7,900 6.3% 35 0 7,400 0.0% E Uptown 612 43210 121 612-43210-121 PERA Coord. Employer Contribu. 550 38 0 550 0.0% 3 0 550 0.0% E Uptown 612 43210 122 612-43210-122 FICA Employer Contribution 300 32 0 300 0.0% 2 0 300 0.0% E Uptown 612 43210 126 612-43210-126 MEDICARE Employer Contribution 100 7 0 100 0.0% 1 0 100 0.0% TOTAL COST INCREASE (DIFF) 543,750 47,620 47,600 17,834 17,600 TOTAL GENERAL FUND COST (DIFF 512,000 45,204 45,300 17,668 17,500 TOTAL ENTERPRISE FUNDS COST (I 31,750 2,416 2,300 165 100 Option 2 Move to Next Closest Step Option 3 - Move to Step Ac ounting for Years of Service DIF Added to Bud % change DIF BUD TOTAL % change DIF Added to bud % change DIF Added to Bud % change Opt 2 Cal Opt 2 Cal Budget Entry in budget Opt 2 Anv Opt 2 Anv Budget Entry in budget Opt 3 Cal Opt 3 Cal Budget Entry in budget Opt 3 Anv Opt 3 Anv I Budget Entry in budget 43,504 43,500 43,500 100.0% 17,668 17,700 17,700 100.0% 48,993 49,000 49,000 100.0% 19,319 19,300 19,300 100.0% 43,504 43,500 43,500 100.0% 17,668 17,700 17,700 100.0% 48,993 49,000 49,000 100.0% 19,319 19,300 19,300 100.0% 6,523 6,500 168,900 3.8% 1,626 1,600 164,000 1.01 6,523 6,500 168,900 3.8% 1,626 1,600 164,000 1.0% 489 500 12,500 4.0% 122 100 12,100 0.8% 489 500 12,500 4.0% 122 100 12,100 0.8% 404 400 10,500 3.8% 101 100 10,200 1.0% 404 400 10,500 3.8% 101 100 10,200 1.0% 95 100 2,500 4.0% 24 0 2,400 0.0% 95 100 2,500 4.0% 24 0 2,400 0.0% 14,175 14,200 124,200 11.4% 7,107 7,100 117,100 6.1% 15,931 15,900 125,900 12.6% 7,987 8,000 118,000 6.8% 8,505 8,500 8,500 100.0% 7,307 7,300 7,300 100.0% 3,895 3,900 3,900 100.0% 7,433 7,400 7,400 100.0% 879 900 8,200 11.0% 441 400 7,700 5.2% 988 1,000 8,300 12.0% 495 500 7,800 6.4% 206 200 1,900 10.5% 103 100 1,800 5.6% 231 200 1,900 10.5% 116 100 1,800 5.6% 10,619 10,600 196,700 5.4% 727 700 186,800 0.4% 17,748 17,700 203,800 8.7% 1,216 1,200 187,300 0.6% 796 800 3,400 23.5% 55 100 2,700 3.7% 1,331 1,300 3,900 33.3% 91 100 2,700 3.7% 658 700 15,300 4.6% 45 0 14,600 0.0% 1,100 1,100 15,700 7.0% 91 100 14,700 0.7% 154 200 3,000 6.7% 11 0 2,800 0.0% 257 300 3,100 9.7% 18 0 2,800 0.0% 1,590 1,600 21,700 7.4% 109 100 20,200 0.5% 2,657 2,700 22,800 11.8% 182 200 20,300 1.0% 119 100 1,700 5.9% 8 0 1,600 0.0% 199 200 1,800 11.1% 14 0 1,600 0.0% 99 100 1,400 7.1% 7 0 1,300 0.0% 165 200 1,500 13.3% 11 0 1,300 0.0% 23 0 400 0.0% 2 0 400 0.0% 39 0 400 0.0% 3 0 400 0.0% 509 500 7,900 6.3% 35 0 7,400 0.0% 850 900 8,300 10.8% 58 100 7,500 1.3% 38 0 550 0.0% 38 0 550 0.0% 64 100 650 15.4% 4 0 550 0.0% 32 0 300 0.0% 2 0 300 0.0% 53 100 400 25.0% 4 0 300 0.0% 7 0 100 0.0% 1 0 100 0.00/ 12 0 100 0.0% 1 0 100 0.0% 45,920 45,900 17,869 17,600 53,032 53,100 19,596 19,500 43,504 43,600 17,668 17,500 48,993 48,900 19,319 19,200 2,416 2,300 201 100 4,038 4,200 277 300