HomeMy WebLinkAbout97-160 - ADMIN Resolution - City Council - 1997/11/17RESOLUTION NO. 97-160
A RESOLUTION REVISING THE POSITION CLASSIFICATION AND
COMPENSATION PLAN EFFECTIVE DECEMBER 1, 1997
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, Minnesota"; and
WHEREAS, Section 3-301 provides that as often as necessary, the Position Classification
and Salary Plan shall be revised by the Council;
THEREFORE, BE IT RESOLVED by the City Council of the City of St. Louis Park that
the Job Values and associated methodology for their determination and the commensurate
salary ranges and their associated methodology, as shown in attachment "A" be hereby
adopted.
Adopted by the City Council November 17, 1997
Mayor
Attest: Review
Ci Clerk
d for Administration:
City Manager
COMPENSATION PLAN
CITY
OF
ST. LOUIS PARK
ESTABLISHED
NOVEMBER
1997
SECTION
I. Executive Limitations
II. Scope
TABLE OF CONTENTS
PAGE NUMBER
1
1
III. Purpose 1
IV. Principles 1
a. Internal Equity
b Market Based
c. Performance Based
d. Defined Pay Limit
e. Predictability
V. Definitions 2
VI. Positions of Employment 3
VII. Job Values 3
VIII. Salary Administration 3
a. Establish Salary Range 3
b. Progression through salary range 3
c. Standard Adjustment 4
d. Adjusting Salary 4
e. New Hires 4
f. Successful Completion Of probation 4
g. Temporary Job Value increases 4
IX. Transition 4
APPENDIX
Determining Job Values
COMPENSATION PLAN
FOR THE
CITY
OF
ST. LOUIS PARK
I. Executive Limitations
This plan is an authorized policy of the St. Louis Park City Council. The City Manager is
responsible for its execution and in so doing shall not allow, cause or permit the fiscal integrity
of the City, its ethical standards or public image to be jeopardized.
II. Scope
This plan affects all positions of employment within the City of St. Louis Park including full-
time and part-time positions in either regular, temporary or probationary status. In instances
where a labor agreement conflicts with this plan, the specific term(s) of the labor agreement
shall take precedence over this plan provided the labor agreement is lawful.
III. Purpose
The purpose of this plan is to establish a fair and equitable method of determining and
maintaining base compensation in such a way which, over time, will allow the City to attract
and retain a competent work force.
IV. Principles
In order to fulfill its purpose the following principles shall govern the practices and
administration of the plan.
A. Internal Equity - Positions with comparable job values shall have the opportunity to earn
comparable salaries.
B. Market -Based - Salaries of City positions should be competitive within the marketplace
recognized as Stanton 5 cities (metro area cities with populations greater than 25,000 but
less than 90,000).
C. Performance -Based - Salary increases are limited to employees who perform satisfactorily
or better.
D. Defined Pay Limit - No position shall be permitted to have a base compensation beyond
the maximum of the pay range provided the range is deemed internally equitable and
market competitive.
E. Predictability - The opportunities and limits of the plan shall be known from the start and
should be void of unreasonable and non -defensible changes.
V. Definitions
A. Job Value - A number representing the value of a position to the organization.
Determining the Job Value is derived from a point factoring system. Job Value is the
primary factor in determining compensation.
B. Market Value - Is the salary data from the annual Stanton Compensation Survey; Group 5
represents metro area cities with populations between 25,000 and 90,000. Market Value
differs for exempt and non-exempt positions because of the availability for paid
overtime. Non-exempt employees use Q2 (fiftieth quartile) figures and exempt employees
use Q3 (seventy-fifth quartile) figures as measures Changes in the Market Values are a
primary factor in determining annual adjustments to the Payline.
C. Comparable Rate - Used when a Market Value is not available. It is the actual pay rate
for a position from either internal or external sources which is materially similar to the
position in question
D. Position Salary Range - Each position's base compensation is represented m this range
defined by the Minimum Position Salary and the Payline.
1) Payline - The Payline represents the City's desired salary for each position The
Payline is determined by a regression formula which compares the Job Value and
Market Value for each position. [The formula for exempt employees is -13 336 +
.764 (Job Value)*3%. The formula for Department Head positions is -1333 +
0 786(Job Value) *3%. The formula for non-exempt positions is -12.69 + .72 (Job
Value) *3%.] Each is multiplied by 3% to represent a one year lag in Market Value.
2) Minimum Position Salary - The standard Minimum Position Salary shall be set at
85% of the Payline If the result is greater than the Market Median, then the
Minimum Position Salary is set to the Market Median.
E. Standard Adjustment - Establishes a baseline for position salary adjustments and is
derived from the percentage movement in the Payline.
F. Apprenticeship - An employee, who for a defined period of time, may not meet the
minimum qualifications for a position but is doing so in hopes of becoming fully
qualified
VI. Positions of Employment
A. Authority - The City Manager is authorized to determine positions of employment, their
number, functional responsibilities, scope of authority and title provided any other
applicable laws, ordinances or Charter provisions are complied with.
B. Budget Impact - The City Manager may modify, add or delete any position (except City
Manager) in order to meet the human resource needs of the City provided it is lawful and
done within the overall context of the City budget
C. Notification - The City Manager shall keep the City Council current with changes to
position titles.
VII. Job Values
Each position of employment in the City shall be assigned a number representing its value in
the organization. The City shall utilize a system which considers skill, effort, responsibility
and working conditions normally required in the performance of the job duties. Each
position shall be assured that its point value is kept reasonably current. Job Value shall be a
primary consideration in determining base pay
VIII. Salary Administration
Each authorized position in the City shall have established for it a permissible range of base
salary. The Payline represents the maximum for the position.
A. Estabhsh the Salary Range
1. Identify Job Value according to the proscribed policy.
2. Identify the Market Value or its comparable.
3. Calculate the proper regression formula in order to determine the Payline. If the Market
Value (or Comparable Rate) exceeds the Payline, the Payline shall assume the Market
Value plus 3%.
4. Set the Minimum at 85% of Payline
B. Progression through the Salary Range
Progression is dependent on satisfactory performance and in such cases the Payline
should be reached in 5 years barring any circumstance which places the financial
integrity of the City in such a condition that it would be imprudent for the City Manager
to make salary adjustments such as an unforeseen loss of revenue. Therefore the 5 years
shall not be considered a guarantee or promise but a goal.
C. Standard Adjustment
The percentage movement in the Payline from one year to the next is known as the
Standard Adjustment. The City Manager shall approve the Standard Adjustment by
considering updated Market Value data from the Stanton Survey, changes in Job Values
and also such information as the CPI and general financial condition of the City.
D. Adjusting Salary
Adjustments to Salary shall be made annually and according to the following parameters:
1. Positions compensated at the Payline shall receive 100% of the Standard Adjustment
2. Positions compensated below the Payline shall receive 200% of the Standard
Adjustment not to exceed the Payline.
3. Positions whose current compensation exceeds the Payline (because it was determined
prior to the implementation of this plan) shall be ineligible for a base salary adjustment
until such time the Payline exacts or surpasses it However, such positions are eligible
to receive a lump sum payment equivalent to the positions salary multiplied by the
standard percentage adjustment. Employees who receive lump sum adjustments for
more than one year shall have the lump sum based on the accumulative salary, not the
first year salary.
E. New Hires
Newly hired employees shall be have a starting salary commensurate with experience and
ability and shall typically be at the Minimum Salary Range. However; the City
Manager may approve exceptions above or below the minimum providing it is prudent to
do so. In such cases, the progression through the Salary Range may be shortened or
elongated.
F. Successful Completion Of Probation
Employees deemed by their supervisor and approved by the City Manager as having
successfully completed a probationary period shall be eligible for a salary adjustment. A
typical probationary period is six months but may be extended if circumstances warrant
it. The amount may vary depending on the employee's staring salary in relation to the
Payline and ability to achieve the Payline A typical salary adjustment is 5% for a
position starting at the Minimum salary.
G. Temporary Job Value Increases
Positions assigned duties which materially increase the Value of the Job for a period of at
least three months are eligible for a temporary salary adjustment A temporary/present
Payline shall be calculated using the temporary Job Value. The amount of salary increase
shall be reasonably represented by the percentage increase between the previous and
temporary/present Paylines.
IX. Transition
Positions found to be compensated below 85% of the Payline as of July 1, 1997
be brought up to said minimum retroactively Regular implementation of the plan
shall begin on January 1, 1998.
fL
DETERMINING POINT VALUES
FOR ALL CITY EMPLOYMENT POSITIONS
Purpose
Each position in the City shall be assigned a point value representing its relative value to the
organization. For non-union and union employees alike, point values shall be a primary
consideration when determining pay; there may be others The method whereby point values
are determined shall be consistently applied to all employment positions in the City.
II. Assuring Continuous Compliance
To assure all positions established by the City are compliant with the overall personnel policies
of the City, an annual audit of position point values shall be conducted. The Human Resource
Office shall conduct such an annual audit of positions to ascertain whether or not positions have
materially changed. Such an annual review shall consist of 25 percent of all regular City
positions. No such position shall go more than four years without having been audited.
Positions having been identified by the audit to have materially changed shall be made known
to the department head who shall be responsible for taking appropriate action
I1I. Position Valuation Process
1) REQUEST - A department head, having been satisfied that a position within their
department has materially changed, shall submit a request to have the position evaluated
for its proper and appropriate point value to the Personnel Officer. There is no
limitation as to when such a request may be made.
2) REVIEW - Upon receipt of a request, the Personnel Officer shall transmit a copy of the
request to all other department heads for purposes of soliciting comments. The
comment period shall be open for two weeks The Personnel Officer shall perform due
diligence on the request using the available and appropriate information and procedures
for analysis (e g , internal comparisons, external comparisons, slotting, benchmarking,
job analysis questionnaire).
3) RECOMMENDATION - Within eight weeks of receipt of the position valuation
request, the Personnel Officer shall make a recommendation to the City Manager. The
Personnel Officer's report shall be shared with all department heads
4) DECISION - The City Manager may approve, deny, or seek clarification on the
Personnel Officer's recommendation within two weeks of receipt.
5) DELIVERY - The City Manager shall deliver the decision to the department head who
in turn shall communicate it to the affected employee A copy shall be delivered to all
department heads.
6) IMPLEMENTATION - The Personnel Officer shall be responsible for implementing
the intended affects of the decision.
pg. 2
7) APPEALS - An employee who disagrees with the result of the City Manager's decision
may appeal in writing to the Personnel Officer within 30 days of receipt of the
decision. The department heads shall serve as a hearing panel for such appeals. The
panel shall convene within two weeks of receipt of the written appeal request. The
department heads shall submit a recommendation to the City Manager to either overturn
or uphold the position valuation determination. The City Manager may take into
consideration the information submitted by the department head panel but is not bound
by their recommendation.
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