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Update to wage study implementation 4-21-2020m i n n e s o t a DATE: April 21, 2020 TO: Honorable Mayor and City Council Members FROM: Ken Cammilleri, City Administrator RE: Additional Information Regarding Wage and Compensation Study Implementation Based on the original analysis done in May of 2019 and recent follow up review with our consultant, Baker and Tilly, it was determined that the salary and compensation study had three deficiencies: The PT Fire Chief position was omitted from the original study. (Additionally, retirement contributions were omitted from the 2020 budget and will also require a budget amendment to account for the non -discretionary obligation.) The original calculations did not include additional employer costs for expenses related to retirement, Medicare and Medicaid. 3. Based on existing duties and responsibilities over the last 5 years, findings also showed that the Deputy Clerk position was misclassified. Rather, the position should be classed as City Clerk. So, the first item to consider for implementation of the salary and compensation study is whether or not to proceed with reclassifying the position of Deputy Clerk to City Clerk. To do so, the Council will also need to adopt the job description included in this paragraph. Making such a change will bring the compensation grade up from grade 9 to 12 resulting in a financial impact. Next the Council should consider eliminating Option 3 — This option places each position within the appropriate grade while also accounting for years of service. The option is the most costly and is least consistent with existing practice. If the Council chooses to proceed with the implementation of the reclassification of the City Clerk position, there is no financial difference between the implementation of Options 1 and 2. They are essentially the same. So, the Council is left to decide between implementing the study at the beginning of the calendar year as of January 1 or to do so at anniversary date. Implementing at calendar year is more costly and is inconsistent with the City's existing practice. Many cities implement step pay adjustments at anniversary date. Therefore, I recommend the Council consider proceeding with an anniversary date implementation of options 1 and 2. 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 2 A Note on Corrections The original data table of staff calculations did include 2 errors here in green below.) Under Option 1, the Deputy Clerk position was shown at 7 years of service, however this option places this and all other positions at step 1. Under Option 2, 7 years was also erroneously entered. For Option 2, Deputy Clerk should be a two year step. This change would result in moving the position within the 5 year range.) Option 1 Difference Move to Step 1 from Current Salary Step Est Title Ste (yrs.) Salary Cur Est. Salary Office Assistant - PT 1 16317.2 15778.00 Treasurer - PT 1 14163.8 16485.00 Deputy Clerk 1 47449.5 50793.60 City Clerk 1 57316.6 50793.60 Director of Public Works 1 78528.7 65811.20 Fire Chief 1 50179.8 36004.80 City Administrator 1 89069.2 90000.00 Option 2 Move to Next Closest Step Title Ste (yrs.) Cur Est. Salary Office Assistant - PT 1 16317.2 15778.00 Treasurer - PT 6 16822.2 16485.00 Deputy Cle 4 50793.60 City Clerk j 57316.6 50793.60 Director of Public Works 1 78528.7 65811.20 Fire Chief 1 50179.8 36004.80 City Administrator 1 89069.2 90000.00 Please let me know if you have any questions. 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 2 of 2