10/23/2007 Council Minutes - Laserfiche WebLink

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CITY COUNCIL WORK SESSION October 23, 2007 APPROVED • 46 47 Director Tesch noted the additional consideration of labor contracts that run from one to 48 three years. The city has agreements with four labor groups. There are essential and non - 49 essential employees — essential employees are not allowed to strike. 50 51 Pay compression was explained by the consultant. It is a situation where pay levels are 52 impacted internally and can become too close and then equity can be a problem. It can 53 also happen when a new employee is brought in at a higher rate. 54 55 Ms. Antonsen addressed the matter of performance based compensation. Most 56 commonly the use of such a system is undertaken by developing the compensation plan 57 with that element. A compensation wage schedule is established with an element that 58 allows for exceptional service rewarded by moving through the wage scale faster or vice 59 versa for poor performance. The other way to establish a performance based system is to 60 have goals outside of the standard compensation rates and a system that allows for extra 61 compensation; normally that system would require that funding be set aside for extra pay 62 if and when it becomes applicable. As far how unions would respond to a performance 63 based system, she believes some unions would be willing if it looks like something their 64 members could benefit from. 65 66 It was confirmed that the city uses a step program for wages, with employees moving • 67 68 through steps on a yearly basis. New employees may start above step one based on the salary of the job they are leaving and the desire to provide a raise in their new job. 69 70 Ms. Antonsen explained the recommendation included in the report. It is based on the 71 contention that the city doesn't have a plan that's broken, with current job descriptions in 72 place and a system that keeps them reviewed on a regular basis. One thing to consider 73 looking at is the market comparison phase and the internal relationships between 74 positions. The pay philosophy is also something the City may want to review also. 75 76 Director Tesch explained that the current system has evolved through legal and human 77 resource requirements as well as conforming to area markets. He provided the council 78 with a list of comparison cities. 79 80 The council discussed getting proposals for the work to be done. 81 82 Director Tesch reiterated that he is recommending the city look at internal equity as well 83 as development of a market philosophy that is acceptable to the council. 84 85 A council member noted that the process in place is very familiar and something used in 86 other areas but it doesn't necessarily seem to be what has been followed. The process 87 used seems more subjective. 88 • 89 It was noted that there was another consultant used for the administrator review process 90 and curiosity if that was intended.