04-22-2026 Council Packet - Laserfiche WebLink

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Staff Report To: Mayor Fischer and Members of the City Council From: Laura Linehan, Assistant City Administrator Bryce Shearen, City Administrator Heidi Heller, City Clerk/HR Manager Date: April 15, 2026 Re: Execute a Professional Services Agreement for Compensation and Classification Study Services with MGT Impact Solutions, LLC Action To Be Considered: Motion to approve, table, or deny the following: • Approve execution of a Professional Services Agreement for Compensation and Classification Study Services with MGT Impact Solutions, LLC, and authorize the City Administrator to sign the contract. Background: At the February 11, 2026, City Council Meeting, the City Council approved staff to issue a request for proposals for Compensation and Classification Study Services. At that meeting, staff presented the history of the city’s compensation and classification structure, the challenges with the current structure, and an overview of the request for proposals. 2022 Compensation and Classification Structure: At the March 23, 2022, City Council meeting, staff presented the city’s first formal compensation study for approval, a study completed by David Drown and Associates (DDA). This formal approval followed several meetings' worth of discussion, including with the Personnel Committee and full City Council workshop meetings. The adopted structure in 2022 consisted of 15 pay grades, each with 7 steps, with 3.25% in between steps. All employees were placed in the closest step to where they were currently in the previous pay structure, with a few exceptions. The implementation date of the play plan was June 29, 2022. 2025 Wage Analysis: As part of the preparations for the City Administrator recruitment process, staff researched the market to determine if the current City Administrator wage was market competitive, in the hopes of ensuring the best candidates were considering the role. DDA worked with the city and reviewed only the City Administrator position. The City Council reviewed proposed adjustments to Grade 15 only at the March 12, 2025, City Council workshop and directed staff to adjust Grade 15 for recruitment purposes. As part of that exercise, DDA noted that the last market review occurred in 2021/2022 and recommended that the city review all market data, as it is anticipated that the entire grid will be below market average. DDA outlined several trends that have likely impacted the city’s market competitiveness: