03 Job Classification & Compensation Study Report

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DDA Human Resources, Inc. a David Drown Associates Company TO: PEQUOT LAKES CITY COUNCIL FROM: TESSIA MELVIN, DDA MANAGEMENT CONSULTANT CC: NANCY MALECHA, CITY ADMINISTRATOR SUBJECT: CLASSIFICATION AND COMPENSATION STUDY BACKGROUND David Drown Associates, Human Resources, was hired by the City of Pequot Lakes to conduct a Classification and Compensation Study. As a partner of Sourcewell, the City received a 50% discount. Sourcewell, formerly National Joint Powers Alliance (NJPA), is a governmental unit committed to providing cooperative solutions assisting government, education and nonprofits as they strive for efficient public service. NJPA's creation was authorized in 1978 by Minnesota Statute 123A. 21, Subdivision 1 as one of Minnesota's nine service cooperatives and offers a variety of cooperative programs for services in Region 5. Sourcewell provides member center solutions that enable government, education and nonprofits to work more efficiently. NJPA leverages its resources to effectively reinvest in the communities it serves as an invaluable service cooperative partner. Pequot Lakes, Minnesota, retained David Drown Associates to conduct a classification and compensation study for all city positions. The last study was completed in 2006. The City currently uses the State Pay Equity system for 10 Job Classifications and uses a 12 step pay structure. For most employees there are '/� steps for a total of 23 steps and the Police officers have 10 steps. The City offers Longevity Pay at 3% every three years after an employee reaches their pay range maximum. In lieu of comp time, the Police Chief and City Administrator receive a set amount of extra pay for their hours worked above normal office hours. PROCESS AND PAY PHILOSOPHY Introductory Meetinq. A meeting was held to discuss the City's goals pertaining to pay philosophy; to review current policies and practices relating to the City's existing pay practices; and to obtain data on the programs and materials currently used. A project team was created which included the City Administrator and consultant. The Personnel Committee inciuding two Councilmembers: Scott Pederson and Mimi Swanson were available for preliminary results discussions. The City wouid like to move to one pay structure for all employees. Job Evaluation Scorinq and Classification. The City had updated job descriptions. The consultant used DDA's Job Evaluation Tool (JET)was used to classify all positions. The JET assigns points to each position within the City and defines the internal relationship among positions. The Classification of jobs determines the job worth to the organization and assists with predicted pay ranges. This step also checks for internal pay equity. The City must compiete a pay equity report and remain in compliance, or the City's Local Government Aid may be withheld. 1