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Page 1 of 4 <br /> <br />AGENDA ITEM – 1A <br /> <br />MEMORANDUM <br /> DATE: November 5, 2018 <br />TO: Honorable Mayor and City Councilmembers <br />Dave Perrault, City Administrator <br />FROM: Gayle Bauman, Finance Director <br />SUBJECT: Compensation Study Discussion <br />Budgeted Amount: Actual Amount: Funding Source: <br />N/A N/A N/A <br /> <br />Council Should Consider <br />The Council should review and provide feedback regarding results from the Compensation Study <br />completed earlier this year and employee benefit renewals for 2019. <br /> <br />Background <br />Earlier this year, a compensation study was completed by George Gmach Compensation Consulting <br />LLC. The Financial Planning and Analysis Committee (FPAC) was directed to take the lead on <br />this project. The main areas that were reported on were Pay Plans; Paid Time Off; Life, Disability <br />and Retirement; and Health and Dental. <br /> <br />Discussion <br />Pay Plans <br />The City has a step system where there is a defined period of time to reach the maximum, which is <br />considered the market rate. There are 24 grades, but the bottom 6 grades and the top 2 grades are <br />not currently used. This is a normal structure design for a city the size of Arden Hills. Overall, <br />Arden Hills is competitive in its market and no major changes are needed in the level of pay. <br />Improvements could be made in the step structure by using a uniform step value that would divide <br />the steps equally over the years. This approach would increase the dollar value of the current early <br />steps and decrease the later steps, which is more aligned with the performance curve of employees. <br />It also gets new hires to a more competitive rate earlier, when retention can be an issue. Another <br />change that was suggested was to shorten the timeline by one or two years for the non-union pay <br />scale. It currently takes 7 years from minimum to maximum for non-union employees and 3 years <br />for union employees. Public Works maintenance wages have some room for wage growth but any <br />adjustments considered should be accompanied by a harmonization with the City non-union step <br />structure. <br /> <br />No changes are being recommended at this time. <br />