HomeMy WebLinkAbout#24 -RFP for Job Class and Compensation (2)STAFF REPORT
DATE: August 16, 2016
REGULAR
ITEM #: 24
MOTION
TO: Mayor and Council
FROM: Kristina Handt, City Administrator
AGENDA ITEM: RFP for Job Classification and Compensation Study
BACKGROUND:
Over the last year or so as the City has been hiring for positions, staff has used the online Salary Survey
through the League of Minnesota Cities to help establish a hiring range. Staff had reviewed salaries in
cities that are 25% smaller and larger then Lake Elmo (6,000-10,000 population). Information entered
into the survey is voluntary on the part of cities.
Recent hirings have brought about questions regarding the overall classification and salaries of City
positions. For example, recent department head hires have salaries $5-10,000+ higher than longer term
employees. Also, we have supervisors of multiple positions making less than those who supervise only
one position.
ISSUE BEFORE COUNCIL:
Should the Council authorize issuing a Request for Proposals for a Job Classification and Compensation
Study?
PROPOSAL DETAILS:
The first step in evaluating the salaries would be to review the job classifications. This establishes the
foundation for grouping jobs into categories in order to compare them both internally (with similar jobs
within the city) and externally (with similar jobs in the larger market). The City last completed a pay
equity report as required under state law in 2014. I’ve included a copy of the job classification submitted
with that report. Clearly, our current pay rates are out of synch with the job classifications. Of particular
concern would be female held positions that have higher points in the classification system but receive
lower salaries than male positions with lower point values.
After the City has established the classifications, the next step would be to compare the various job
classes to appropriate job categories and classes in the market. This comparison to the market should go
beyond what is included in LMC’s salary survey as it does not include all cities since it is voluntary.
In order to best complete these tasks, staff would recommend the Council approve issuing an RFP. Due
to current staff workload, to avoid (perceived or real) conflicts of interest, and to follow the best
management practices in local government, an outside firm should be hired to complete the analysis and
provide recommendations as needed.
This issue was discussed by the Human Resource Committee on August 8th. The committee had concerns
about the cost of a proposal, discussed doing the work internally, suggested looking at job descriptions,
and noted that the classification may not have been updated in a number of years. Two of the three
members supported going out for an RFP. The third member’s concern was cost and the thought that the
work could be completed by staff or interns.
FISCAL IMPACT:
None to issue the RFP. Cost of proposal to be determined at the time they are received. The financial
projections for 2016 include a budget surplus of over $550,000. If the project is started this year those
funds could be utilized. Any fund balance that carries over into 2017 could also be used to pay for this
project without having to increase the tax levy.
RECOMMENDATION:
Motion to authorize the issuance of a Request for Proposals for a Job Classification and Compensation
Study
Job
Nbr
Class
Title
Nbr
Males
Nbr
Females
Class
Type
Jobs
Points
Min Mo
Salary
Max Mo
Salary
Yrs to Max
Salary
Yrs of
Service
Exceptional
Service Pay
2014 DataCase:
Lake Elmo
Job Class Data Entry Verification List 606LGID:
18 Receptionist 0 1 F 124 $2,687.00 $2,687.00 0.00 2.00
17 Water/Fire support 1 0 M 130 $2,690.00 $2,690.00 0.00 2.00
14 Planning Assistant 0 1 F 170 $3,007.00 $3,007.00 0.00 2.00
1 Deputy Clerk 0 1 F 205 $3,188.00 $3,188.00 0.00 2.00
2 Heavy Equipment Operator 1 0 M 214 $3,167.00 $4,853.00 0.00 4.00
3 Heavy Equipment Operator 1 0 M 214 $3,167.00 $4,853.00 0.00 7.00
4 Heavy Equipment Operator 1 0 M 214 $3,167.00 $4,853.00 0.00 9.00
5 Heavy Equipment Operator 1 0 M 214 $3,167.00 $4,853.00 0.00 23.00
16 Park Maintainer 1 0 M 214 $3,167.00 $4,853.00 0.00 2.00
15 Librarian 1 0 M 282 $3,750.00 $3,750.00 0.00 1.00
19 Taxpayer Relations 0 1 F 300 $3,771.00 $3,771.00 0.00 3.00
7 City Planner 1 0 M 345 $4,167.00 $4,167.00 0.00 2.00
6 Building Official 1 0 M 360 $5,099.00 $5,099.00 0.00 3.00
8 Fire Chief 1 0 M 372 $5,718.00 $5,718.00 0.00 9.00
9 Finance Director 0 1 F 384 $6,118.00 $6,118.00 0.00 3.00
10 City Clerk 1 0 M 384 $5,417.00 $5,417.00 0.00 3.00
11 Maintenance Supervisor 1 0 M 384 $6,110.00 $6,110.00 0.00 28.00
12 Community Development Director 1 0 M 457 $6,921.00 $6,921.00 0.00 7.00
13 City Administrator 1 0 M 496 $9,417.00 $9,417.00 0.00 3.00
19Job Number Count:
1