09-17-07 Item 2C, Pay Equity Plan and Compensation

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MEMORANDUM DATE: TO: FROM: SUBJECT: September 17, 2007 Mayor and City Council Michelle Wolfe, City Administrator ~ Pay Equity and Compensation Study AGENDA ITEM: 2C BACKGROUND On March 26, 2007, City Council approved a Motion to Award the Job Classification Study to Riley, Dettman, & Kelsey, LLC. The City of Arden Hills last completed a job classification and compensation study in 2002. In January of2008 the City is required by state law to submit a pay equity report. Mr. Rod Kelsey will be preparing our pay equity report, which reports on 2007 wage rates. He will be present at the work session to review the results of the study to-date and request further direction from Council. DISCUSSION There are many goals to accomplish as a result of completing this study: 1. Ensure our compliance with State of Minnesota statutes regarding pay equity. 2. Evaluate the City's existing compensation structure to ensure that we are comparable and competitive with other cities that have similar demographics. 3. Update job descriptions. 4. Update and review salary ranges and job descriptions for new or revised positions (example, Parks and Recreation Manager, Planner I). In June 2007, Mr. Kelsey met with Council to overview the study process and receive direction regarding peer comparison cities. Council provided direction regarding a list of 14 cities that were to be used for study purposes. Since that time, Mr. Kelsey met with employees and discussed the process. He distributed Job Description Questionnaires (JDQs), which were completed by the employees. The JDQs were reviewed by supervisors and me, and then submitted to Mr. Kelsey. He reviewed the JDQs for pay equity purposes, and also developed a proposed classification structure. In addition, Mr. Kelsey did a market analysis to look at City of Arden Hills salaries in relation to the peer comparison cities, and has been developing a proposed revised pay plan.