Item 1C, 2008 Proposed Compensation Plan

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Memorandum to Mayor and City Council Re: Pay Equity and Compensation Study November 19, 2007 Page 2 of 4 The group then discussed the pros and cons of constructing the pay matrix with symmetry between the grades (i.e. vertically). It was noted, for example, that salary compression can occur ifthere is not symmetry between the pay grades. Ultimately, after discussion, it was determined that Mr. Kelsey should study the draft market-based matrix, look at any pay grades that were quite close together, and make reasonable symmetrical adjustments; however, not go to the extent of an exact same percentage between each range. Therefore, the final direction ofthe subcommittee to Mr. Kelsey was as follows: Create a new draft pay plan matrix with the following guidelines: I. The maximum of the pay ranges should be market based 2. The plan should be based on the 55th percentile (with the understanding that in future years the City can work towards the 60th percentile) 3. Look at implementing some reasonable symmetry between the pay grades within the matrix 4. Remove the City of Shoreview from the list of comparison cities It was agreed that staff and Mr. Kelsey would prepare the supporting information for discussion at the November 19 Work Session. Attached are the following documents for City Council review: A. Documentation of the Proposed 2008 Pay Plan for Council Review and Comment (dated November 2007) B. Job Evaluation Factors in the Job Evaluation System (this is the system used to evaluate the job description questionnaires submitted by employees last summer, which was reviewed by Mr. Kelsey at the September 17 work session) C. Proposed 2008 Classification Placement Roster by Level (this list, which illustrates the proposed levels for each position, is unchanged since presentation at the September 17 Work Session) D. Roster of Peer Comparison Cities (this list has been changed since the September Work Session, to delete the City of Shoreview) E. Survey Benchmark Title Roster (these are the positions which were studied in relation to the market survey data) F. Survey Data Supporting the 2008 Base Pay Matrix (this is a new document illustratin~ the market data for each surveyed position, which is the basis for determining the 55' percentile and creating the maximum pay rate for each level) G. Metropolitan Area Salary Surrey Summary (this is the same data presented at the September Work Session) H. Proposed 2008 Base Pay Matrix Finance Director Iverson is developing an estimate for the costs of implementing the proposed pay matrix. Staff will have an estimate available for the Work Session.