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Item No: 08B Meeting Date: Nov 24, 2008 Type of Business: Consent Administrator Review : ___ City of Mounds View Staff Report To: Honorable Mayor and City Council From: James Ericson, Clerk-Administrator Item Title/Subject: Resolution 7365, Approval of a Scope of Work from Springsted for Additional Compensation Study Assistance Introduction: On June 9, 2008, the City Council approved Resolution 7281 which authorized Springsted to conduct a compensation study and market wage analysis. The work has been conducted, but due to reliability issues with the HAY points assigned to each position, Springsted was unable to prepare a comprehensive pay plan for the City. The City Council has expressed a strong desire to complete the compensation study and market wage analysis with a reliable pay plan, thus a comprehensive analysis of the HAY points needs to occur. Discussion: Springsted has completed their work associated with the June 9th authorization (identifying comparable communities, preparing a survey instrument, collecting and analyzing the data and providing market rate wages for benchmark positions) and they have been very accommodating and flexible in attempting to deliver a comprehensive play plan to the City, however after numerous meetings, conference calls and electronic correspondence, it became evident that a pay plan could not be created due to problems encountered with the HAY Points assigned to the various positions. Some of the points were revised and amended in 2006, no supporting documentation was found to understand how or why the positions’ points were revised. Internal inequities with points and wages were also observed, which when coupled with the unsubstantiated points, further restricted Springsted from providing a pay plan. The City Council requested Springsted to prepare a supplemental scope of work to provide the City with a reliable comprehensive pay plan. Springsted has submitted the scope of work (attached) which endeavors to accomplish the following objectives: • Review the Hay point values established for all positions and to document how points were determined • Develop a new pay line using the results of the 2008 market salary survey and the updated Hay points • Calculate the pay scale for each position • Provide observations that may be useful to the City in considering the long-term direction of its compensation program Staff has communicated to Springsted that “time is of the essence” and the Council expects to receive the final work product for review, approval and implementation in December of this year.