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<br /> <br /> STAFF REPORT <br /> <br /> <br />TO: Mayor Keis and Members of City Council <br /> <br />FROM: Chris Heineman, City Administrator <br /> <br />DATE: September 22, 2021 <br /> <br />RE: Classification and Compensation Study <br /> <br />ACTION TO BE CONSIDERED: <br />The City Council is asked to authorize the City Administrator to execute a contract for services with <br />DDA Human Resources, Inc. for a Position Classification and Compensation Study. <br /> <br />BACKGROUND: <br />At the City Council Workshop on August 11, 2021, staff presented a proposal to conduct a classification <br />and compensation study. The City of Little Canada has traditionally completed an in-house analysis for <br />each position that becomes vacant prior to advertising for that position. The City has been through a <br />significant level of staff transition in recent years with a total of ten full-time and permanent part-time <br />positions hired over the past 2½ years. <br /> <br />A classification and compensation study will enable us to provide a more detailed analysis of our current <br />compensation system that will result in a compensation system that is technically solid, understandable, <br />and can be implemented in a timely manner. In performing this analysis, the consultant will address <br />compliance in the MN Pay Equity Program and will provide a compensation system that help with the <br />retention of current staff and will enable the City to attract, hire, and retain a high level of talent as future <br />positions become available. <br /> <br />Staff reached out to several consultants that conduct classification and compensation analysis in August <br />and received two proposals. DDA Human Resources (David Drown Associates) was the most <br />competitive and the proposal was tailored to our needs. Staff has also checked with other cities listed as <br />references and feels very comfortable recommending DDA Human Resources. <br /> <br />This initiative also adheres to the strategic objectives of the 5-year Strategic Plan adopted in 2019. A <br />classification and compensation study falls into Strategic Direction Four under the heading of Creating <br />Operational Efficiency and aligns with the initiative of optimizing our organizational structure. Included <br />in the agenda packet you will find a contract for services as described. The attached proposal includes a <br />not-to-exceed amount of $4,500 as well as a fee of $2,700 per year for ongoing maintenance. <br /> <br />STAFF RECOMMENDATION: <br />Staff is recommending that the City Council approve a contract with DDA Human Resources for the <br />Market and Calibration portion of the proposal in the amount of $4,500. If a contract for ongoing <br />maintenance is desired, it can be added at a later time and included as a line item in a future budget.