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MOUNDS VIEW City of Mounds View Staff Report Item No: 8F Meeting Date: December 9, 2013 Type of Business: Consent To: Honorable Mayor and City Council From: James Ericson, City Administrator Item Title/Subject: Resolution 8188 Approving a Revised 2014 Pay Plan for Non Union Employees Consistent with a Compensation Study Conducted by Springsted, Inc. Introduction: Earlier this year, recognizing that it had been many years since last reviewing its compensation plan from a comparability standpoint, the City Council asked Springsted, Inc., to conduct a compensation study consistent with a proposal dated February 14, 2013. Discussion: The City Council reviewed the draft compensation study prepared by Springsted at its August work session and suggested no action be taken until later in the year after labor negotiations had begun. Staff has initiated negotiations with the three bargaining groups, and compensation for those groups will be addressed separately. The remaining twenty non-union employees would be subject to the revised pay plan; although not all positions were deemed to warrant adjustment. A few positions were shown to be more than 5% below the comparable median wage; for these positions, the wage adjustment would be implemented over multiple years. If the wage imbalance was 5% or less, the full amount of the adjustment would be accounted for in 2014. There were some positions that did not line up well with the comparable cities or that insufficient data was received. In these cases, utilizing a standard statistical analysis, a "predicted pay" was determined using a line of best fit. If the predicted pay exceeded the existing pay for the position, an adjustment was made based on the predicted pay. A desired outcome of the study, in addition to ensuring our wages were comparable to communities most similar to Mounds View, was to achieve a better internal equity balance among positions. The predicted wages help address this issue. Recommendation: Staff recommends the Council approve Resolution 8188 which authorizes a revised 2014 Pay Plan for non-union employees consistent with the findings of the compensation study prepared by Springsted, Inc. The plan already includes the 2% cost of living increase for non-union employees adopted by the Council at its meeting on November 25, 2013. Respectfully submitted, James Ericson City Administrator