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Home My WebLink About6.e. Pau Equity4ROSEMOUNTEXECUTIVE SUMMARY CITY COUNCIL City Council Meeting: January 19, 2010 ISSUE The Department of Employee Relations requires us to submit our Pay Equity Report every three years. The latest schedule is a result of legislation passed in the 2005 special legislative session that changed the reporting cycle back to once every three years instead of once every five years. The report will be submitted to the Department of Employee Relations upon Council approval. Our report is due to be submitted by January 31, 2010. This report shows data in place as of December 31, 2009. Staff has worked with Ann Antonsen of Springsted, Incorporated to prepare the City's Pay Equity Implementation Report. The report indicates that the Department of Employee relations should find the City "in compliance ". Please see the attached letter which explains the 4 tests of compliance. The job classification points are assigned using the "Hay Management Consultant" job evaluation system and are based on benchmarked job values under this system. City Council is required to approve the Pay Equity Report. The report is required by the Local Government Pay Equity Act, M.S. 471.991- 471.999 and Minnesota Rules, Chapter 3920. The City's next compliance report will be due in three years. BACKGROUND The previous Pay Equity Report was submitted in January 2007 and the City was found "in compliance ". SUMMARY It is requested that the City Council approve the 2010 Pay Equity Implementation Report for 2009 Compliance. AGENDA SECTION: AGENDA ITEM: Pay Equity Consent PREPARED BY: Emmy Foster, Assistant City AGENDA NO. Administrator . ATTACHMENTS: Springsted Compliance Letter & 2010 Pay Equity Implementation Report APPROVED BY: for 2009 Compliance RECOMMENDED ACTION: Motion to approve the 2010 Pay Equity Implementation Report for 2009 Compliance ISSUE The Department of Employee Relations requires us to submit our Pay Equity Report every three years. The latest schedule is a result of legislation passed in the 2005 special legislative session that changed the reporting cycle back to once every three years instead of once every five years. The report will be submitted to the Department of Employee Relations upon Council approval. Our report is due to be submitted by January 31, 2010. This report shows data in place as of December 31, 2009. Staff has worked with Ann Antonsen of Springsted, Incorporated to prepare the City's Pay Equity Implementation Report. The report indicates that the Department of Employee relations should find the City "in compliance ". Please see the attached letter which explains the 4 tests of compliance. The job classification points are assigned using the "Hay Management Consultant" job evaluation system and are based on benchmarked job values under this system. City Council is required to approve the Pay Equity Report. The report is required by the Local Government Pay Equity Act, M.S. 471.991- 471.999 and Minnesota Rules, Chapter 3920. The City's next compliance report will be due in three years. BACKGROUND The previous Pay Equity Report was submitted in January 2007 and the City was found "in compliance ". SUMMARY It is requested that the City Council approve the 2010 Pay Equity Implementation Report for 2009 Compliance. Springsted Incorporated 380 Jackson Street, Suite 300 Saint Paul, MN 55101 -2887 Tel: 651 - 223 -3000 Fax: 651 - 223 -3002 www.springsted.com January 14, 2010 Ms. Emmy Foster Assistant City Administrator City of Rosemount 2875 —1451h Street West Rosemount, MN 55068 Dear Ms. Foster: Springsted has prepared the City's Pay Equity Implementation Report and utilized the State of Minnesota Department of Employee Relations pay equity software to analyze the City's 2009 wage information. There are four tests for compliance with the State of Minnesota Local Government Pay Equity Act. Following are the tests and the results: 1. Completeness and Accuracy Test: The City will pass this test if the report is submitted electronically by January 31, 2010. Springsted will submit the report for the City upon approval of the report by the City Council. 2. Statistical Analysis Test: To pass this test the City must have at least 6 or more male classes and at least one class with an established salary range and an underpayment ratio of 80 or more. The City's underpayment ratio is 229.2, which is well above the established standard, therefore the City would be found in- compliance with this test. 3. Salary Range Test: For organizations with established salary ranges for positions, this measures whether male classes are reaching the top of their salary range faster than female classes. This result must either be 0 or above 80 to be found in compliance. The results of the salary range test for the City is 96.67, which is also above the established standard and indicates that the City would also pass this test. 4. Exceptional Service Pay Test: This test analyzes whether there is a larger percentage of male classes receiving longevity or performance pay than female classes. For this test the result must either be 0 if less than 25% of male classes receive exceptional service pay or be above 80. The results of this test are 97.5 which is again, above the established standard and indicates that the City also passes this test. Please review the enclosed information and if there are no changes please have the report reviewed and approved by the City Council prior to January 31, 2010. Springsted will submit the report to the Department of Management and Budget upon notification of approval by the City Council. Please let me know if you have any questions or concerns. Sincerely, OgAA aqntonben Ann Antonsen, Vice President Consultant Public Sector Advisors Pay Equity Implementation Report Send completed report to: Pay Equity Coordinator Department of Employee Relations 200 Centennial Building 658 Cedar Street (651) 296 -2653 (Voice) St. Paul, MN 55155 -1603 (651) 282 -2699 (TDD) Part A: Jurisdiction Identification For Department Use only — --- Postmark Date of Report C__ 1001 Jurisdiction ID Number Jurisdiction: City of Rosemount Jurisdiction Type: CITY 2875 - 145th Street West Rosemount, MN 55068 Contact: Assistant City Administrator Emmy Foster Phone: (651) 322 -2002 Fax: Email: Part B: Official Verification 0 The job evaluation system used measured skill, effort 0 No salary ranges/performance differences. responsibility and working.conditions and the same ❑Leave blank unless BOTH of the following apply: system was used for all classes of employees. The system used was: lConsultant System (Specify '► a. Jurisdiction does not have a salary range for any job Describe: Hay Management Consultants class. b. Upon request, jurisdiction will supply documentation showing that inequities between male and female classes are due to performance differences. ® Health Insurance benefits for male and female classes of comparable value have been evaluated and: ere is a difference _ Lwj and the maximum salaries reported include the monthly amount paid by the employer for health insurance 0 Cvrj- information in this report is complete and accurate. 0 Z The report includes all classes of employees over which the jurisdiction has final budgetary approval authority. Part C: Total Payroll $5,846,651.00 is the annual payroll for the calendar year just ended December 31 Note: Do not include any documentation regarding performance with this form. 0 An official notice has been posted at: Hall Bulletin Lard (prominent location) informing employees that the Pay Equity Implementation Report has been filed and is available to employees upon request. A copy of the notice has been sent to each exclusive representative, if any, and also to the public library. The report was approved by: City Council (governing body) William H. Droste (chief elected official) Mayor (title) 0 Checking this box indicates legal signature by above official. Compliance Report Jurisdiction: City of Rosemount Contact: Emmy Foster Assistant City Administrator Insurance Added? Job Evaluation System Used: 01/14/201C Phone: (651) 322 -2002 The statistical analysis, salary range and exceptional service pay test results are shown below. Part I is general information from your pay equity Report data. Parts II, 111 and IV give you the test results. For more detail on each test, refer to the guidebook. I. GENERAL JOB CLASS INFORMATION A. Avg. # of years to max salary for male jobs = 4.83 B. Avg. # of years to max salary for female jobs = 5.00 IV. EXCEPTIONAL SERVICE PAY TEST 97.50 Male Female Balanced Ali Job 65.00 Classes Classes Classes Classes # Job Classes 24 20 2 46 # Employees 47 25 20 92 Avg. Max Monthly $5,954.72 $5,265.00 $5,765.99 Pay per Employee 11. STATISTICAL ANALYSIS TEST Male Female Classes Classes A. UNDERPAYMENT RATIO = 229.2 a. # at or above Predicted Pay 13 16 b. # Below Predicted Pay 11 4 C. TOTAL 24 20 d. % Below Predicted Pay 45.83 20.00 (b divided by c = d) (Result is % of male classes below predicted pay divided by % of female classes below predicted pay) B. T -TEST RESULTS Degrees of Freedom (DF) = 70 Value of T = -1.856 a. Avg. diff. in pay from predicted pay for male jobs = $44 b. Avg. dill. in pay from predicted pay for female jobs = $187 III. SALARY RANGE TEST = 96.67 % (Result is A divided by B) A. Avg. # of years to max salary for male jobs = 4.83 B. Avg. # of years to max salary for female jobs = 5.00 IV. EXCEPTIONAL SERVICE PAY TEST 97.50 A. % of male classes receiving ESP 66.67 B. % of female classes receiving ESP 65.00 (if 20% or less, test result will be 0.00)