Agenda Packets - 2006/01/30 - Laserfiche WebLink

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Item No: 04B Meeting Date: 1/30/06 Type of Business: Work Session City of Mounds View Staff Report To: Honorable Mayor and City Council From: Kurt Ulrich, City Administrator Item Title/Subject: Non-Union Salary Compensation Background The Human Resources Committee is in the process of reviewing the Salary Compensation guidelines as outlined in the Mounds View Personnel Manual. The basis for the review is to determine if another group of comparison cities other than the Stanton Group 6 cities provide a better means of comparison. Market rate adjustments, as required by the existing Stanton Group 6 policy, were deferred for all non-union employees until other methods could be reviewed. The non-union group includes the City Administrator, all department heads, and confidential employees. Market rate adjustments for union employees were included as part of the 2004-05 contracts, however, no compensation/market rate adjustments were not made on non-union salary since 1998. The Human Resources Committee is pursuing a compensation study that puts into consideration population, city market value, and taxable tax capacity instead of just using Stanton 6 cities (population 10,000 – 25,000) as outlined in the Personnel Manual. The study would encompass all positions within the City. It was also determined at the last Human Resources Committee that an RFP be drafted in order to accept bids to have an outside agency do a compensation study on all job descriptions (union and non-union), and to draft a pay equity report which is due to the Department of Employee Relations on January 31, 2007. This RFP will be ready to be presented to the Human Resources Committee at the next meeting sometime in March. Any compensation adjustments resulting from this study could then be negotiated into new contracts and/or included in budgets for 2007. Discussion and Alternatives Attached is a draft of the non-union compensation study as outlined in the Mounds View Personnel Manual. According to City records, the last time a comprehensive salary compensation study and market adjustments was in 1998, meaning that the policy has not been followed for approximately seven years. Many of the current employees were hired under the current policy referencing Stanton 6 as the benchmark for compensation. Consequently, many of the non-union positions are relatively close to the Stanton Group average because most salary ranges were updated at the time of hire.