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'It <br />EN HILLS <br />MEMORANDUM <br />DATE: January 8, 2024 <br />TO: Honorable Mayor and City Councilmembers <br />FROM: Dave Perrault, City Administrator <br />SUBJECT: Compensation and Classification Proposal <br />Budgeted Amount: Actual Amount: <br />$17,500 $12,650 <br />Council Should Consider <br />Motion to approve, table or deny the following: <br />Compensation and Classification Proposal <br />Background <br />CONSENT ITEM — 8F <br />Funding Source: <br />General Fund <br />The City Council put $17,500 in the 2024 budget for a compensation and classification study. <br />The most recent formal study was done in 2014/5, a less formal study was done in 2018, too. <br />Staff reached out to two firms, David Drown and Associates (DDA) and Abdo Eick and Meyers <br />(AEM), for proposals. Each proposal highlighted different options for moving forward, but Staff <br />is recommending Council consider the full compensation study from each proposal. Both firms <br />are well versed in these studies with local units of government, and Staff did receive positive <br />feedback regarding both from other cities. Staff and the Personnel Committee reviewed both <br />proposals, and Staff is recommending along with the Personnel Committee that the Council <br />approve the DDA proposal. DDA's proposal was less expensive at $12,650 versus AEM's <br />proposal of $15,000. Below are a few key highlights that this study will accomplish: <br />-Review and necessary re -writes of each position in the City <br />-Creating a compensation plan based on market factors and Council's direction <br />-Review and recommendation of benefits and PTO/ESST based on market factors and Council <br />direction <br />-Updated compensation system to meet any applicable pay equity guidelines <br />This meeting is only to approve the study, at a future date Council will be asked to weigh in on <br />other factors, such as, what other cities should we compare ourselves to and what is the <br />Council's goal for compensation (ex. at, above, or below market). At the conclusion of the study, <br />the Council will be given recommendations on how to move forward along with the cost of <br />different options on how to implement the recommendations. The study is expected to take about <br />four months. <br />Page 1 of 2 <br />