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Item No: 07A Meeting Date: Dec 22, 2008 Type of Business: Council Business Administrator Review : ___ City of Mounds View Staff Report To: Honorable Mayor and City Council From: James Ericson, Clerk-Administrator Item Title/Subject: Resolution 7380, Approving the Salary Compensation Study and 2009 Pay Plan 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 was completed however due to reliability issues with the HAY points assigned to each position and limited responses for other positions, staff was unable to prepare a comprehensive pay plan for Council consideration. 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 was needed. The Council authorized this work on November 24, 2008 via Resolution 7365. This work has since been completed and after final refinement, is being brought to the Council for consideration and implementation for 2009. Discussion: Springsted has completed their work associated with the November 24th authorization. All positions’ job descriptions have been reviewed and the HAY points have been reviewed and revised based on standard benchmarking and internal equity. From the revised HAY Points and the previously completed market wage study, a proposed and actual wage table was prepared which includes the following information: • Job Title • Proposed Hay Points • Market Wages (if applicable) • Predicted Pay • Existing Wages For fifteen of the thirty positions, Springsted received reliable market rate salary data. Of those fifteen, five positions presently earn more than the market equivalent and thus no increase would be warranted. The remaining ten positions appear to be under market ranging from 2% to 17%. For the fifteen positions that did not have sufficient reliable market data, the line of best fit was used to determine whether the existing wages were appropriate. Based on the line of best fit, the predicted pay for seven of these positions was higher than the existing pay by less than 1% up to 27%. Four of the fifteen positions earn more than their predicted wage thus no increase would be warranted. One position, the Account Clerk, will need to undergo a “job audit,” which is a more in depth assessment, to ascertain the relevant job duties for purposes of establishing an appropriate wage or verifying that the existing wage is appropriate. The other position which might warrant further study is the now vacant PSO position, which according to the data, appears to be underpaid by 27%.