HomeMy WebLinkAbout10/23/2007 Council Minutes•
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CITY COUNCIL WORK SESSION October 23, 2007
APPROVED
DATE
TIME STARTED
TIME ENDED
MEMBERS PRESENT
MEMBERS ABSENT
CITY OF LINO LAKES
MINUTES
SPECIAL WORK SESSION
: October 23, 2007
. 5:35 p.m.
. 7:27 p.m.
: Councilmember Carlson, O'Donnell,
Reinert, Stoltz and Mayor Bergeson
: None
Staff members present: City Administrator, Gordon Heitke; Director of Administration,
Dan Tesch; Director of Public Safety, Dave Pecchia; Director of Community
Development, Michael Grochala; and City Clerk, Julie Bartell
COMPENSATION
Mayor Bergeson explained that the purpose of the meeting is to talk about the city's
compensation system. He noted that written information on the compensation system
was previously delivered to the council.
Director Tesch outlined the make up of a compensation system. A sample of a job
description and performance review form was reviewed.
The council was informed that the directors do performance reviews for the employees in
their unit.
Director Tesch continued his review of the compensation system. If a new job
description is proposed, it is forwarded to an analyst for assignment of job value points
that are ultimately used for job equity standards. All jobs have points assigned and the
city uses the same widely used system as the state, the Hay method. All City jobs would
be evaluated upon that selected system.
Director Tesch explained that most positions are union and that adds an element of
negotiation or involvement. Pay equity compliance has always been a part of the city's
system. The city has used the League of Minnesota Cities (LMC) survey information —
specifically in Group 6, a grouping based on the city's current estimated population.
Does the council consider that a legitimate market?
The council asked for more information about the survey and its data.
Ann Antonsen, consultant, Springsted, Inc., replied that the survey information is quite
reflective because cities in the metro area are generally very responsive, in the ninety
percent range.
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CITY COUNCIL WORK SESSION October 23, 2007
APPROVED
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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.
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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.
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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.
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66 It was confirmed that the city uses a step program for wages, with employees moving
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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.
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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.
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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.
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80 The council discussed getting proposals for the work to be done.
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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.
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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.
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• 89 It was noted that there was another consultant used for the administrator review process
90 and curiosity if that was intended.
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CITY COUNCIL WORK SESSION October 23, 2007
APPROVED
91
92 A council member commented that elected officials need to take ownership if there is a
93 problem. The council could have given more direction to the consultant for the
94 administrator's review.
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96 There was some disagreement about the level of the council's responsibility especially
97 considering that council members are elected and can come and go. The process in place
98 should be followed and not changed by staff.
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100 Another opinion expressed was that a CEO evaluation is normally far different than other
101 employees. Having different instruments for positions is a common practice.
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103 The consultant concurred that the performance review of the administrator or chief officer
104 would normally be more extensive than the standard employee review.
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106 One council member commented that there is value in understanding what other like
107 cities are doing.
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109 The council concurred that a review of the city's performance system is appropriate on an
110 occasional basis, including at all positions.
111
112 A concern was expressed that employee satisfaction is lacking. There is information
113 indicating dissatisfaction that is spreading informally probably for fear of retaliation.
114
115 It was noted that some problems could be inter -employee or not under the control of the
116 city. How does that concern fit into a performance review system? What would be a
117 system to get useful employee feedback?
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119 It was recognized that some employee dissatisfaction is normal in an organization the size
120 of the city. The question is whether or not the level is unusual.
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122 Clarity is necessary if an RFP will be sought.
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124 There was some concern that an RFP was requested eight weeks ago and the direction
125 was not followed.
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127 The percent of market could be used as a tool for performance pay. There could be
128 flexibility.
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130 Regarding experience with a performance based system, an opinion was expressed that it
131 hasn't worked well on a long or short term basis at one council member's work place.
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133 The recommendation included in the report does not include performance pay.
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135 The council asked, what is the corrective action when an employee is not performing?
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CITY COUNCIL WORK SESSION October 23, 2007
APPROVED
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137 Director Tesch explained that there is a normal disciplinary process that is followed.
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139 Is there agreement that the city should go out for an RFP? If so, what would be included?
140
141 One council member suggested:
142 - look at process in place, evaluate it and see if it is the right process to clearly
143 identify how employees will be evaluated and how those results are used;
144 - look at the process of how the council evaluates the city administrator (include alternatives)
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146 Ann Antonsen suggested that the council seems to be calling for a review of the City's
147 classification and compensation program and performance evaluation system and requesting
148 recommendations be included on evaluation of the city administrator position. That would
149 naturally include a review of internal equity as well as market. The city could ask that each
150 component be bid separately however she wouldn't recommend utilizing different consultants for
151 different elements. On the question of including all departments, she explained that it would be a
152 requirement for some elements but you could exclude some groups for some areas. For instance,
153 it wouldn't be unusual for the police department to have a different performance system. On the
154 question of timing and union contracts currently being negotiated, it would seem almost
155 impossible to include any change right away but probably more like in a year.
156
157 Another council member suggested the project should include review of the current system - job
158 descriptions, performance evaluation, job evaluation and employee compensation, internal equity
159 and employee satisfaction.
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161 Perhaps a work session agenda item to discuss turnover could be scheduled. Information from
162 more than four years previous may be helpful as a comparison. It should be kept in context of
163 what is happening in the rest of the world and that turnover isn't always a bad thing.
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165 A draft of an RFP will be presented at the November work session.
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167 The correct term for what the city is looking for seems to be an "audit" as well as looking at best
168 practices in the areas noted.
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170 The meeting was adjourned at 7:27 p.m.
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172 These minutes were considered, corrected and approved at the regular Council meeting held on
173 November 13, 2007,
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178 Julianne : artell, City Ilerk John Bergeson, Mayor
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