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City Council Agenda Packet 12-05-19910 '/ 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. ff Special Council Meeting - 12/5/91 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. 0 0