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HomeMy WebLinkAbout86-207 - ADMIN Resolution - City Council - 1986/12/15RESOLUTION NO. 86-207 A RESOLUTION REVISING THE POSITION CLASSIFICATION PLAN AND AMENDING RESOLUTION NO. EFFECTIVE JANUARY 1, 1987 WHEREAS, as authorized by Section 3-301 of the St. Louis Park Ordinance Code, the City Council has established the "Position Classification Plan and Salary Administration Program for the City of St. Louis Park, Minne- sota"; and WHEREAS, Section 3-301 provides that as often as necessary, the Position Classification and Salary Plan shall be reviewed and revised by the Council; therefore BE IT RESOLVED by the City Council of the City of St. Louis Park that the salary structure for office, technical and maintenance employees and admin- istrative, supervisory and management employees as shown in the Position Classification and Salary Plan for the City of St. Louis Park, Minnesota, be amended as shown in the attached Exhibit B. Adopted by the City Council December 15, 1986 Attest: Reviewed for administration: 0‘ 4 -- Approve•s to form and legality: City Atte ney To: Through: From: Subject: December 15, 1986 8d M & C 86-07 Mayor and City Council James L. Brimeyer, City Manager Vincent J. Gutierrez, Director of Personnel Proposed 1987 Salary Adjustments: Office, Maintenance and Technical Employees, Administrative, Supervisory and Management Employees To maintain a salary structure which provides external and internal equity and which enables the City to attract and retain qualified personnel, it is necessary to periodically review and update the City's Position Classification Plan and salary range structure. In the past, the City has maintained a competitive position in the metropolitan labor market by providing a wage and fringe benefit plan which recognizes the variations in economic and labor market conditions. POSITION CLASSIFICATION AND SALARY PLAN The Position Classification and Salary Administration Program, adopted in 1976, provides for regular employee reviews by supervisors. Specific salary adjustments are recommended by supervisors based on job performance, responsibility level and current salary of the employee. Division Heads are reviewed by the City Manager, and all salary adjustments must be approved by the City Manager. To maintain the integrity of the Position Classification and Salary Plan, each job description must be kept accurate. In addition, it is necessary to make periodic adjustments in salary range structures. The factors which most strongly influence the City's annual update of its compensation program are: 1. The change in the metropolitan consumer price index. 2. Wage settlements with employee labor organizations. 3. Unemployment rates for key occupations within the metropolitan area. 4. Turnover and difficulty in recruiting. 1987 Salary Adjustments December 15, 1986 - pg. 2 5. Salaries for comparable positions in other cities. 6. The City's ability to reward above-average job performance. In calculating the recommended modification to the Position Classification and Pay Plan, staff has studied each of the above factors: CONSUMER PRICE INDEX - According to the Bureau of Labor Statistics of the U.S. Department of Labor, the increase in the Consumer Price Index (CPI -W) for the Minneapolis -St. Paul area was 0.9 percent from April 1985 to April 1986 (Attachment A). The most current Minneapolis -St. Paul Consumer Price Index, October 1986, is 340.9, using 1967 as the base year. The most recent nationwide CPI, October 1986, was 330.5, reflecting a 1.5 percent increase from October 1985. EMPLOYEE BARGAINING GROUPS - Contract status with the three bargaining units in the City are as follows: Local 993 (Fire) - At this time the City of St. Louis Park and Local 993 are meeting but no agreement has been reached. Local 320 (Police) -At this time the City of St. Louis Park and Local 320 are meeting but no agreement for 1987 has been reached. Local 49 (Public Works) - At this time the Metropolitan Area Managers Association and Local 49 are meeting, but no agreement for 1987 has been reached. METROPOLITAN AREA SALARY SURVEY - In determining the recommended modification of the salary range structure for 1987, staff utilized the Twin Cities Metropolitan Area Salary Survey, a comprehensive survey of metro area public and private employers prepared by Stanton Associates. This survey indicates that the City's wage structure is competitive with the prevailing public sector wage and salary patterns in the Minneapolis -St. Paul area. 1987 Salary Adjustments December 15, 1986 -,pg. 3 According to the survey, salary increase patterns for 1986 were as follows: State agencies salaries up 5.1% Metropolitan -wide agencies salaries up 3% Hennepin -Ramsey -Twin Cities salaries up 4.6% Suburban counties salaries up 5.4% Suburbs over 10,000 salaries up 4.2% Suburbs under 10,000 salaries up 5.2% In St. Louis Park, the 1986 average adjustment in salary was 4.5% for office, technical and maintenance employees and 5.0% for administrative, supervisory and management employees. AREA MUNICIPALITIES - Surveys of area municipalities which will make, or are considering, salary adjustments for 1987, indicate that the anticipated average wage increase will be approximately 4.6 percent. A sample is listed below: Anticipated 1987 Actual Municipality General Salary Increase 1986 Increase Bloomington No estimate 4.5% Edina 3% 5% Roseville 3.5% 4.0% Coon Rapids 4% 4% Brooklyn Park 4% 4% Richfield 4.5% 4.5% Fridley 4% 4.5% Minnetonka 4% 5% Golden Valley 5% 7% Brooklyn Center 3.5%-4.0% 4% Crystal no estimate 4.5% 1987 Salary Adjustments December 15, 1986 - pg. 4 UNEMPLOYMENT RATE - The Minnesota Department of Economic Security Review of Labor and Economic Conditions (October 1985) shows an October unemployment rate for the Metropolitan Statistical Area of 3.6%, somewhat under the nationwide rate of 7.0%. Comparisons of the supply of experienced job applicants to job openings show a 3.2:1 ratio for clerical occupations and a 7.0:1 ratio for professional, technical and managerial occupations. The City has had no difficulty recruiting to fill technical or maintenance positions. Skilled clerical applicants have been less plentiful, although major recruiting problems have not been encountered. TURNOVER - Turnover statistics through the Third Quarter of 1986 indicate overall City turnover of 4.5%. This reflects a slight increase from the low 1985 turnover of 4.0% for the same period. Clerical and service/maintenance separations account for 40% of the turnover. Turnover among technical, professional, administrative and supervisory employees represents 30% of the total. There was 10% turnover among protective services employees and 20% among paraprofessionals. Exit interviews are conducted with all separating employees, and reasons for resignation are discussed at that time. In 1986, rate of pay has appeared only three times as a reason for resignation. COMPARABLE WORTH In 1982, the Minnesota Legislature passed a law which provided for comparability adjustments for state civil service job classifications in which "compensation inequities" existed. These compensation inequities were determined based on comparisons of rates of pay for jobs of comparable value, as measured by such factors as skill, effort, responsibility and working conditions. Pay equity adjustments were made for classifications in which 70 percent of the position -holders were female. In 1984, the Legislature extended pay equity to local government. The new law requires each political subdivision to establish equitable compensation relationships between female -dominated, male -dominated and balanced classes of employees. A job evaluation system must be used to determine comparable work value. On December 3, 1984 council approved City participation in the MAMA Joint Comparable worth study. • 1987 Salary Adjustments December 15, 1986 - pg. 5 The final report was submitted to the City on May, 1986. The job evaluation hierarchies were returned and on two occassions some of the Time Spent Profiles had to be resubmitted for re- evaluation. The hierarchies will help form the basis for development of a plan to implement comparable worth. The plan must estabish reasonable relationships of compensation for positions which require comparable skill, effort, responsibility and working conditions. Compensation for positions requiring different skills, efforts, responsibilities and working conditions must reflect proportional relationships. Further, compensation for positions should consider the wages paid for similar market positions. Implementation of comparable worth is not in place. Department Heads currently are reviewing the final results of the study and will be developing a comparable worth plan reflecting the goals of the City of St. Louis Park to share with the employees. If inequities are identified a plan of action will be developed and implemented to address those inequities. Increase of salary for those inequities will not be reflected in this report for salary adjustments. The state report on pay equity will also be completed and filed as required by the Minnesota Department of Employer Relations. In addition to development of the plan, staff expects that employee appeals will be filed after results of the study are available. Appeals involving individual employees will be handled internally while appeals affecting classes of employees will be handled by MAMA. RECOMMENDED 1987 SALARY RANGE ADJUSTMENTS Based on the above factors, it is recommended that all salary structures be increased 3.5 percent for 1987. As provided in the Position Classification and Pay Plan, individual salaries will be adjusted on the basis of the employee's job performance, responsibility level and the relative position of the employee's current salary in the pav range. Some salary increases may vary above and below the salary table adjustments. Part-time/Seasonal Pay Schedule The pay schedule for part-time/seasonal employees will be increased 3.5% for 1987. The minimum wage rates remains the same for 1987, $3.35 per hour for employees 18 years or older and $3.02 for employees under 18 years old. Attached are revised salary structure tables based on the proposed percent adjustments (Attachment B). Attached also are charts illustrating the individual positions in each responsibility level (Attachments C, D, E), and an explanation of the salary zones (Attachment F). 1987 Salary Adjustments December 15, 1986 - pg. 6 1987 Appropriation In the 1987 budget, the City Council appropriated a total of $275,000 for salary adjustments for all City employees except those budgeted under enterprise and internal service funds. This appropriation appears in the unallocated general expense account, and funds must be transferred to the appropriate departments by ordinance. An ordinance transferring funds from the unallocated general expense account to the individual departments is being prepared for the January 20, 1987 Council meeting. Attached for Council's consideration is a resolution implementing the salary structure as proposed to be effective January 1, 1987. • Attachments • ATTACHMENT Ar COST -OF -LIVING COMPARISON (CONSUMER PRICE INDEX -CPI -W*) Percent Increase Over Past Nation-wide 12 mo. Mpls./St. Paul 1985 1986 1985 1986 January 312.6 328.4 5.05 February 313.9 327.5 4.33 326.0 339.9 March 315.3 326.0 3.39 April 316..7 325.3 2.72 329.2 338.4 Play 317.8 326.3 2.67 June 318.7 327.9 2.89 332.3 342.1 July 319.1 328.0 2.79 August 319.6 328.6 2.82 334,4 340.3 September 320.5 330.2 3.03 October 321.3 330.5 2.86 336.0 340.9 1984 1985 1984 1985 January 302.7 312.6 February 303.3 313.9 318.6 326.0 March 303.3 315.3 April 304.1 316.7 321.1 329.2 May 305.4 317.8 June 306.2 318.7 328.9 332.3 July, 307.5 319.1 August 310.3 319.6 332.5 334.4 September 312.1 320.5 October 312.2 321.3 327.0 336.0 *A11 urban consumer Percent Increase Over Past 12. mo. 4.26 2.79 2.95 1.76 1.46 Attachment B City of St. Louis Park 1987 SALARY STRUCTURES for OFFICE POSITIONS Responsibility Percent Level Zone 1 Zone 2 Zone 3 Spread I Annual $11,028 - 11,811 $11,823 - 13,450 $13,463 - 14,220 29% Monthly 919 - 984 985 - 1,120 1,121 - 1,185 II 12,320 13,264 '13,276 - 15,090 15,102 - 15,996 30% 1,026 1,105 1,106 - 1,257 1,258 - 1,333 III 13,388 - 14,444 14,456 - 16,493 16,506 - 17,524 31% 1,115 - 1,203 1,204 - 1,374 1,375 - 1,460 IV 14,841 - 16,034 16,046 - 18,418 18,431 - 19,623 32% 1,236 - 1,336 1,337 - 1,534 1,535 - 1,635 V 16,320 17,649 17,661 - 20,381 20,988 21,723 33% 1,369 - 1,471 1,472 - 1,697 1,698 1,810 VI 17,463 18,953 18,965 - 21,896 21,909 - 23,399 34% 1,455 1,579 1,580 - 1,825 1,826 - 1,950 VII 18,394 - 19,984 19,996 - 23,238 23,250 - 24,828 35% 1,533 - 1,665 1,666 - 1,936 1,938 - 2,069 Revised January 198' Responsibility CITY OF ST. LOUIS PARK 1987 SALARY STRUCTURES for SUPERVISORY/ADMINISTRATIVE/MANAGEMENT POSITIONS Attachment C Percent Level Zone 1 Zone 2 Zone 3 Spread 30% VIII $19,890 $21,377 $21,378 - $24,452 24,453 - 25,856 IX 22,036 23,745 23,746 - 27,159 27,160 - 28,867 31% X 25,077 - 27,081 27,082 31,096 31,097 - 33,102 32% XI 28,502 30,854 30,855 35,553 35,554 - 37,907 33% XII 30,111 32,503 32,504 - 37,730 37,731 - 40,349 34% XIII 32,574 35,426 35,427 - 41,123 41,124 - 43,975 35% XIV 35,599 38,802 38,803 - 45,212 45,213 - 48,414 36% XV 39,651 - 43,315 43,316 50,649 50,650 - 54,321 37% XVI 44,951 49,218 49,219 57,759 57,760 - 62,033 38% XVII 52,804 58,743 58,745 - 70,625 70,627 - 76,379 45% Revised January 1987 Attachment D CITY OF St. LOUIS PARK 1987 SALARY STRUCTURES for MAINTENANCE AND TECHNICAL POSITIONS Responsibility Percent Level Zone 1 Zone 2 Zone 3 Spread T-1 Annual 16,841 - 17,859 17,872 19,896 19,909 - 20,878 24% Monthly 1,403 - 1,488 1,489 1,658 1,659 - 1,739 T-2 18,058 - 19,251 19,263 - 21,598 21,610 - 22,753 26% 1,504 - 1,604 1,605 - 1,799 1,800 - 1,896 T-3 19,300 - 20,679 20,691 - 23,349 23,362 - 24,740 28% 1,608 - 1,723 1,724 - 1,945 1,946 - 2,061 T-4 21,436 - 23,051 23,063 - 26,243 25,255 - 27,858 30% 1,786 - 1,920 1,921 - 2,186 2,187 - 2,321 T-5 23,722 - 25,622 25,634 29,422 29,435 - 31,323 32% 1,976 - 2,135 2,136 2,451 2,452 - 2,610 T-6 - 26,529 - 28,752 28,764 - 33,260 33,273 - 35,546 34% 2,211 - 2,396 2,397 - 2,772 2,773 - 2,962 Revised January 1987 It qk %