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HomeMy WebLinkAbout20071217 - VIII-C-2VIII-C-2 MEMORANDUM TO: Honorable Mayor and City Councilmembers FROM: Dave Osberg, City Administrator DATE: December 13, 2007 SUBJECT: Compensation Program Resolution RECOMMENDED CITY COUNCIL ACTION It is recommended that the City Council take action approving the enclosed: "Resolution of the City Council of the City of Hastings Establishing Criteria for the Implementation of a Compensation Program for Positions in the City of Hastings that Provides for a More Reasonable Comparison to Those Cities in the Twin Cities Metropolitan Area with Similar Population Ranges." BACKROUND Members of the Administrative Committee (City Councilmembers/Chair Ed Blueness, Turney Hazlet and Barb Hollenbeck) have conducted several meetings in the last several months in an attempt to address criteria for the establishment of a compensation program that more accurately reflects the market of those Cities with populations comparable to the City of Hastings. Compensation schedules for many positions in the City of Hastings have fallen behind, when compared to the market. Feedback from City employees identified pay and benefits as one of the priorities to address, to assure that the City is remaining competitive with other Cities in the Twin Cities. In addition, a frequent suggestion from the labor unions in the City of Hastings in such that the City's salary structure is no longer as competitive with our comparable Cities, for many positions in the various labor unions within the City. The Administrative Committee first addressed this issue during a meeting in June, 2007, as Assistant City Administrator Melanie Mesko Lee and I provided a framework for the situation, and offered several guidelines that had been addressed with Department Heads, prior to that time. Staff provided a variety of examples to the members of the Administrative Committee, illustrating the -fact that many positions in our organization had lost their competitive ranking when compared to the market. Generally, the members of the Administrative Committee provided positive feedback on the work completed at that time, and directed Staff to fine tune the review further, and report back to the members of the Administrative Committee for additional consideration. On Thursday October 25, 2007 the members of the Administrative Committee conducted their last meeting on this topic. At that meeting, the members of the Administrative Committee indicated their support of the elements that would result in the implementation of a compensation program that would begin to recognize that many positions within our organization are falling behind when compared to the market. The framework of the program, as reflected in the attached Resolution, includes the following: 1.) Cities with populations ranging form 15,000-35,000 who report in the League of Minnesota Cities compensation survey shall be used as comparabies. 2.) The average compensation for those Cities identified above, shall be used in determining the comparable market rate compensation schedule. 3.) Compensation schedules for positions should be at the average of the comparable cities' compensation schedules over a three year period, beginning in 2008 and implemented in its final step in 2010. 4.) The City shall remain in compliance with the Pay Equity Act Provided the Resolution is adopted by the City Council, it would be the intent of Staff to then prepare the non-union compensation schedules for review and approval at the 2°d City Council meeting in January. The additional time frame provides an opportunity to review closely the data that is available in the LMC survey and implement the appropriate 2008 compensation schedule. Furthermore, certain j udgments will have to be made on some positions that otherwise do not have a reasonable number of comparable cities, and there may also be other situations within the compensation schedule that warrant additional review and consideration. Funding for the implementation of the program h~,s been incorporated in the proposed -2008 Budget. David M. Osberg City Administrat5 RESOLUTION #12-----07 Resolution of the City Council of the City of Hastings Establishing Criteria For the Implementation of a Compensation Program for Positions in the City of Hastings that Provides for a More Reasonable Comparison to Those Cities in the Twin Cities Metropolitan Area With Similar Population Ranges WHEREAS, The City of Hastings seeks to attract and retain quality employees for its organization, and; WHEREAS, The City of Hastings has maintained compliance with the Pay Equity Act throughout the years of the Act's existence; and WHEREAS, Remaining competitive with other comparable Cities in the Twin Cities Metropolitan area is a goal of the City Hastings when establishing compensation schedules for its employees; and WHEREAS, During the last several years it has become apparent that compensation schedules for certain positions with the City of Hastings have not kept pace at a reasonable level to similar positions in comparable Cities in the Twin Cities metropolitan area; and WHEREAS, a significant concern of City employees as identified in an employee survey is the observation that the City of Hastings pay and benefits are not competitive when compared to similar sized Cities in the metropolitan area; and WHEREAS, During Labor Union contract negotiations, a frequent theme addressed by the Union leadership is the further erosion of the Hastings compensation schedule when compared to similar positions in comparably sized Cities; and NOW, THEREFORE BE IT RESOLVED, BY THE CITY COUNCIL OF THE CITY OF HASTINGS, that effective in January, 2008, the City Council intends to begin the process of implementing a compensation schedule that more reasonably compares to similar sized Cities in the Twin Cities Metropolitan Area, with the following guidelines used to implement the plan: A.) Cities with populations ranging from 15,000-35,000 who report in the League of Minnesota Cities compensation survey shall be used as comparables. B.) The average compensation for those Cities identified in (A.) above shall be used in determining the comparable market rate compensation schedule. C.) Compensation schedules for positions should be at the average of the comparable cities' compensation schedules over a three year period, beginning in 2008 and implemented in its final step in 2010. D.) The City shall remain in compliance with the Pay Equity Act. BE IT FURTHER,RESOLVED, that City Staff present for City Council approval at the regular meeting of the City Council scheduled for Tuesday January 22, 2007 the proposed 2008 compensation schedule for those City positions currently not included as part of a collective bargaining agreement. Adopted by the City Council of the City of Hastings, This 17t" Day of December, 2007 Ayes: Nays: Absent: Paul Hicks Mayor Melanie Mesko Lee City Clerk -seal-