HomeMy WebLinkAbout2020-162 Council ResolutionCITY OF LINO LAKES
RESOLUTION NO. 20-162
RESOLUTION APPROVING THE KEYSTONE COMPENSATION CLASSIFICATION
SYSTEM
WHEREAS, the City of Lino Lakes must comply with the Local Government Pay Equity Act
(LGPEA) (M.S. 471.991-471.999); and
WHEREAS, the City of Lino Lakes desires to attract and retain qualified, professional
employees; and
WHEREAS, the City of Lino Lakes desires to implement a new salary range matrix that
supports internal equity and puts the City in a competitive market position; and
WHEREAS, Keystone Compensation Group, LLC has completed a comprehensive job
classification and compensation study, and the results of the study were incorporated into the
2021 Budget process and contract negotiations with each of the city's collective bargaining
units.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lino Lakes that
the Keystone Compensation Classification System is hereby adopted and will replace the current
Hay Classification System effective January 1, 2021.
Adopted by the City Council of the City of Lino Lakes this 14th day of December, 2020.
The motion for the adoption of the foregoing resolution was introduced by Councilmember
_ Cavegn and was duly seconded by Councilmember _ Lyden and upon vote
being taken thereon, the following voted in favor thereof:
Stoesz, Ruhland, Lyden, Cavegn, Rafferty
1'he following voted against same:
None
afferty, Mayor
ATTEST:
Julia e Bartell, Ci Clerk
CITY COUNCIL
AGENDA ITEM 3B
STAFF ORIGINATOR: Sarah Cotton, City Administrator
MEETING DATE: December 14, 2020
TOPIC: Consider Resolution No. 20-162, Approving the Keystone
Compensation Classification System
VOTE REQUIRED: 3/5
BACKGROUND
In December 2018, the City Council was made aware of the City's issues with pay equity
compliance and internal equity. These issues are a result of discrepancies in the City's current
Hay job classification system and compensation plan. The City's job classification system
assigns each position points based on job duties and technical skills. When job points do not
correspond with the expected pay, any variance creates a domino effect within the
compensation plan.
In June 2019, staff recommended that the City perform a comprehensive job classification and
compensation study on all positions to rectify internal equity issues and to ensure compliance
with pay equity moving forward. Staff was directed to move forward with the study as
proposed.
In June 2020, Saado Abboud from Keystone Compensation Group, LLC attended the City
Council Work Session to present the results of the compensation study and discuss potential
action regarding implementation. The Compensation Study Report is attached for reference.
The main objectives of the study were as follows:
1. Review and update all job descriptions, which included input from employees and
supervisors confirming job responsibilities.
2. Evaluate City jobs and confirm internal equity. A new job point evaluation system was
implemented.
3. Define the market for talent amongst peer groups and prepare a competitive market
analysis for the City's compensation program.
4. Develop a new salary range matrix that supports internal equity and puts the City in a
competitive market position.
5. Evaluate the budget impact for implementing new salary ranges.
The indirect objectives were to attract and retain qualified employees and to ensure compliance
with the Local Government Pay Equity Act (M.S. 471.991-471.999).
Under the new Keystone Job Classification and Compensation Plan, the number of job grades
will decrease from 27 to 16. Salary ranges for job grades 180 and lower have six steps to the
maximum instead of zero to five, with a step progression of 2.75% instead of 4.2% to 14.9%.
The minimum salary is set at 85% of the maximum. Job grades 190 and higher have nine steps
to the maximum instead of zero to five, with a step progression of 2.5% instead of 4.2% to
4.5%. The minimum salary is set at 80% of the maximum.
In July 2021, staff was directed to include the Keystone Compensation Classification System in
the 2021 Budget. The budget impact of transitioning employees from their current salary
ranges and steps to the new salary ranges and steps was estimated to be approximately $64,773.
A report containing the results of the job classification and compensation study was provided to
the collective bargaining units and tentative agreements have been reached during contract
negotiations regarding the implementation of the new compensation plan. The budget impact
of implementing the Keystone Compensation Classification System and transitioning all City
employees to the new salary ranges is closer to $108,160. This amount is partially offset by the
resulting salaries of staff turnover and other personnel budget assumptions. The 2021 Draft
Budget presented at the November 30, 2020 Special Budget Work Session includes the full
impact of plan implementation.
Approval of the Keystone Compensation Classification System will replace the current Hay
Classification System effective January 1, 2021.
RECOMMENDATION
Staff recommends approving Resolution No. 20-162, Approving the Keystone Compensation
Classification System.
ATTACHMENTS
Resolution No. 20-162, Approving the Keystone Compensation Classification System
Keystone Recommended 2020 Lino Lakes Salary Range Matrix and Steps Schedule
Compensation Study Report