City Council Agenda Packet 12-05-19910
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AGENDA FOR THE SPECIAL MEETING OF THE CITY COUNCIL
Thursday, December 5, 1991 - 4:30 p.m.
Mayors Ren Maus
Council Members: Shirley Anderson, Dan Blonigen, Brad Pyle,
Clint Herbst
1. Call to order.
2. Consideration of accepting final report on comparable worth
study and job evaluation system results completed by the
League of Minnesota Cities.
3. Consideration of cost of living adjustments for 1992 for non-
union personnel.
4. Adjournment.
Special Council Meeting - 12/5/91
2. Consideration of acceptinq final report on comparable worth
studv and job evaluation system results completed by the
Leaque of Minnesota Cities. (R.W.)
A. REFERENCE AND BACKGROUND:
The League of Minnesota Cities personnel recently completed a
detailed study of our present organizational structure, all
city positions, and has recommended a plan for implementation
that should result in the City of Monticello complying with
the comparable worth legislation. The deadline for compliance
with the Local Government Pay Equity Act is December 31. Any
compensation changes necessary for compliance must be
effective by that date.
As you will recall, the League of Minnesota Cities was
contracted with to help the City develop job descriptions for
all of its job classes, evaluate these job classes, develop
proposed salary ranges and a salary administration system,
including pay recommendations for the City, using market
information and job evaluation results. This recommendation
includes the initial placement of employees into salary ranges
as well as additional information on how the system works.
Ms. Sherrie Le, Personnel Advisor with the League of Minnesota
Cities, will be in attendance at the special meeting to review
the final report and answer any questions the Council and
employees may have. A copy of the results has been made
available to all employees, and all City employees have been
notified of the special meeting at 4:30 and may be in
attendance to hear the results.
The following is a summary of the services performed under
contract with the League.
A questionnaire was given to all city employees
asking each individual to describe their Job, list
duties they performed, knowledge, skill, and/or
ability that was needed to perform the job, along
with other factors that were used to help determine
each individual's responsibility and job content.
From this information, League personnel prepared
now job descriptions for all individuals. The now
job descriptions were then reviewed by both
supervisors and the employees for accuracy, and
changes were made as necessary.
Using the now job description content, the Loaguo
dovelopod a job evaluation system which utilized
five areas to determine a point value for each
Special Council Meeting - 12/5/91
particular job. The five factors analyzed included
1) knowledge and experience, 2) accountability for
actions, 3) planning, 4) supervision, and
5) working conditions.
The League conducted a market study of both metro
and non -metro cities with populations ranging from
3,000 to 7,500 to develop a recommended salary
schedule for each new job class. Salary ranges
were prepared for 22 possible grades using this
information, and then individuals, based on their
job evaluation point studies, were assigned to a
specific grade. Each salary grade has seven steps
from the minimum to the maximum salary for each
grade. After the salary ranges for each grade were
established, the League personnel recommended where
each existing employee should be placed within the
grade. The rationale they utilized was that the
employees should be placed into their respective
salary grades at the salary step closest to, but
not below, their current salary. No one should
receive a pay cut when adopting a new system.
As part of the preparation of new job descriptions/ titles, it
was recommended that the City consider establishing a new
position of office Manager. The information supplied in this
report is based on the creation of this position and the
clarification of the position of Computer Support Analyst. In
addition, the full-time Liquor Store Clerk position also
received a different job description than those utilized by
part-time individuals.
The final report as prepared is certainly more detailed than
just duiny what's necessary to comply with the comparable
worth legislation. I believe the report is well done and
should establish a salary program for all city positions that
the City Council and employees can understand. With the
establishment of salary rangos and this system of evaluating
all our existing jobs and futuro positions as they arrive, the
City Council will only have to be concerned on an annual basis
with establishing a coat -of -living adjustment if warranted.
An individual's movement within an appropriate salary range
would still be determined by a performance evaluation system
conducted by supervisory personnel. If an employee is not at
the top of their range and their performance is adequate, stop
Increases would be granted. For those individuals who are
already at the top of their range, adjuotmonts to their salary
would only occur through Council action in adjusting the cost -
of -living percentage.
Special Council meeting - 12/5/91
I encourage you to familiarize yourself with the narrative
provided by Sherrie Le of the League in describing how the pay
system would work and was developed. Should any of you have
any questions you would like her to answer, if you let me know
in advance, I can advise her of Council members' concerns.
In addition to reviewing and/or accepting the report, it
should be noted that the Council does not have to take any
action on adjusting salaries for union personnel at this time.
Although if the report is accepted as presented and a salary
range is set up for union members, their wages are a
negotiating issue as part of the bargaining for their contract
renewal and does not have to be adjusted until such time
through negotiations. Appendix J in the report outlines all
job classes and the cost to the City of moving individuals
into the appropriate step within the salary ranges. The total
cost to the City to implement the recommendations would amount
to $15,017 for all full-time liquor store personnel and non-
union employees. This is equal to 3% of the current payroll
cost for these individuals.
The salary ranges and information supplied in the report are
based on 1991 market information, and this would also be an
appropriate time for the Council to consider an adjustment to
the salary ranges for cost -of -living increases for 1992. The
adjustments recommended in Appendix J do not include any cost -
of -living increase for 1992, and this will still have to be
determined by the Council. For your information, I've
enclosed some survey results I obtained from surrounding
communities on cost -of -living adjustments they are proposing
for 1992. Also, according to the Kiplinger Washington Letter,
the 1991 Consumer Price Index is estimated to have increased
approximately 3.51 for 1991.
ALTERNATIVE ACTIONS:
After the presentation of the report by Sherrie Le of the
League, the Council could adopt the report and the
recommended implementation procedures, including the
establishment of salary ranges, the 22 job
classifications, approve the job descriptions, and
implement the salary adjustments for all non—union
employees. Again, adopting the report would not
implement any changes for union personnel at this time.
Accept the report as presented along with the
Implementation of job classes, job descriptions, salary
ranges, and make modifications to the initial placement
of employees within the salary ranges.
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4_
With the adoption of the report and job descriptions, any
non-union individuals below the proposed grade and step
within their salary range has to be adopted by
December 31 if the City is to be in compliance with the
comparable worth legislation. It would also seem
unreasonable to not place current employees within their
ranges at the nearest level appropriate, which is what is
recommended by the League.
C. STAFF RECOMMENDATION:
First of all, I am supportive of the creation of the Office
Manager position, as I believe it will enhance the work flow
coordination within City Hall. In addition, I feel the report
is very thorough in establishing job descriptions and the
resulting point value for each position. The League used
their resources in providing market information of surrounding
communities with similar positions to establish the salary
ranges, and I believe the establishment by the Council of the
salary system based on this report is long overdue. The
salary ranges provide each employee with an opportunity to
grow in their position over time provided their performance is
acceptable. It should also ease the burden of the City
Council in the future in that the only concern the Council has
to address is what should the coat -of -living adjustment be
annually. If the Council is prepared to consider a cast -of -
living adjustment for 1992, the salary schedules would be
amended effective January 1, 1992.
SUPPORTING DATA:
Copy of final report from the League.
M
l
City of Buffalo
City of Big Lake
City of Maple Grove
City of Plymouth
City of Elk River
Additional Note:
SALARY ADJUSTMENT SURVEY
1992
3. 1%
34
4%
3%
No decision yet until
police union settles
1991 contract
The City of Plymouth indicated that their survey of many metro area
communities indicates that most expect "COLA" increases to be in
the 2.5% to 4% range, with most expected around 3%.
Kiplinger Washington Lettor noted 1991 inflation rate to be 3.51.
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