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HomeMy WebLinkAbout5.b. Compensation Work Program ProposalCITY OF ROSEMOUNT EXECUTIVE SUMMARY FOR ACTION CITY COUNCIL MEETING DATE DECEMBER 15 1992 AGENDA ITEM:COMPENSATION WORK PROGRAM PROPOSAL AGENDA SECTION: OLD BUSINESS PREPARED BY: SUSAN M. WALSH AGENDA NO ADMINISTRATIVE ADMINISTRATIVE ASSISTANT # 5 ATTACffiKENTS: PROPOSAL ,-;REQUEST FOR PROPOSAL AP O BY Mr. Cy Smythe will be at the Council meeting to review with council his firm's proposal for the development of a compensation system for -the -city. This proposal is in response to the City's Request for Proposal which was approved by Council at its November 17, 1992 Council Meeting. Attached is a copy of this RFP for your review. Since Mr. Smythe has been out of town all week, staff has not been able to contact him regarding questions we have about his proposal. We, therefore, are not able to make comments or a recommendation on the proposal at this time. Mr. Jilk and I will be meeting with Mr. Smythe on Monday, December 14th. Following this meeting, we will then be prepared to express our comments and recommendations. We will provide to you a memorandum on Monday evening, December 14, at the special council meeting at the fire station. I apologize for the inconvenience this may cause, but I don't feel comfortable making any recommendations until staff has met with Mr. Smythe. RECOMMENDED ACTION: None at this time. COUNCIL ACTION: , December 9, 1992 LABOR RELATIONS ASSOCIATES, INC. 7501 Golden Valley Road Golden Valley, Minnesota 55427 612/546-1470 FAX: 612/546-1552 PROPOSAL FOR THE DEVELOPMENT OF A COMPENSATION SYSTEM FOR THE CITY OF ROSEMOUNT FROM LABOR RELATIONS ASSOCIATES, INC. TO: Stephen Jilk City Administrator City of Rosemount 2875 - 145th Street West P.O. Box 510 Rosemount, MN 55068-0510 FROM: Cyrus F. Smythe, PhD Consultant A. PURPOSE• To develop a performance and/or merit based compensation system for the City of Rosemount which will be consistent with State and Federal laws, general principles of equitable compensation, and the City's financial resources. B. MANAGEMENT STRUCTURE: The development of the compensation system to meet the objectives outlined will be under the direction of Cyrus F. Smythe, Consultant. Assisting will be Karen A. Olsen, Consultant and Ann Antonsen, Research Associate. C. WORK PLAN - DEVELOPMENT OF A COMPENSATION SYSTEM: 1. Identify appropriate external market comparisons for selected benchmark jobs based on similar organizational structure, job responsibilities, scope of authority, financial, -socio- economic, and other relevant factors. 2. Review salary relationships (wage and wage equivalents) between City employees. Identify patterns of comparison which have contributed to existing compensation differentials. 3. Analyze and compare internal and external compensation levels and structures. Determine variance between internal and external comparisons. Provide guidance -and make recommendations on how to incorporate and implement the results of the Job Evaluation Study currently being coordinated by the Metropolitan Area Management Association (MAMA). Coordinate recommendations with the consulting f irm the City may contract with to provide updated job values. 5. Develop preliminary recommendations for a City salary structure based on internal and external comparisons using new job values derived from coordinated MAMA study.- Conduct statistical and other analyses to determine whether preliminary recommendations comply with the "equitable" and "reasonable" compensation relationship standards required by the state Local Government Pay Equity Act, other State and Federal legislation, and with generally accepted principles of compensation equity. 6. Revise recommendations as necessary to meet applicable legal and practical compensation requirements. 7. Present recommendations to the City Council for their consideration and comments. The City Council will be advised of what the short term and long term effects of the proposed program will require and how the analysis and recommendation were developed. 8. Revise recommendations per agreement with City Council. 9. Present final recommendation to City to City Council for final consideration and adoption. D. WORK PLAN - DEVELOPMENT OF PERFORMANCE STANDARDS AND EVALUATION SYSTEM: 1. Develop recommendations which provide for performance standards, performance evaluation and compensation adjustment opportunities within this system. E. WORK PLAN - REVISE JOB DESCRIPTIONS TO IDENTIFY ESSENTIAL JOB FUNCTIONS UNDER ADA: 1. Review employee job descriptions and make recommendations for any changes based upon the recommended compensation program and State and Federal laws with regard to the Americans with Disabilities Act (ADA). F. PROJECT TIMETABLE AND ESTIMATED COSTS: 1. Part C: Development of Compensation System a) The project is expected to require approximately 12 weeks from initiation to completion after the MAMA job values have been adopted. b) Estimated costs as attached in Appendix A. Part D: Development of Performance Standards and Evaluation system a) This project is expected' to require 20 weeks from initiation to completion. b) Estimated costs as attached in Appendix B. 3. Part E: Revise Job Descriptions to Identify Essential Job Functions a) This project is expected to require 16 weeks from initiation to completion. b) Estimated costs as attached in Appendix C. G. BIOLOGICAL SUMMARIES: Dr. Cyrus F. Smythe Cyrus Smythe received a PH.D in Economics from the University of Washington. He was a regular member of the faculty of the Industrial Relations Department, School of Management at the University of Minnesota from 1961 until his retirement from the University in 1988. He has authored numerous articles for academic journals on labor relations and labor law. Dr. Smythe has forty years of experience in labor relations as a teacher, negotiator and arbitrator. He is presently, by his request, on inactive status as an arbitrator with the Federal Mediation and Conciliation Service and the American Arbitration Association. In the public sector, Dr. Smythe has consulted with and represented federal, state, municipal and county governments, academic institutions, and metropolitan agencies. Karen Olsen Karen Olsen earned a B.A. degree in psychology from the University of Wisconsin - Milwaukee and an M.A. degree in Industrial and Organizational Psychology from the University of Minnesota. She joined the consulting firm of Labor Relations Associates, Inc. in 1970, after 7 years as a personnel officer with General Mills, Inc. Her consulting activities focus primarily on compensation systems in both union and non-union settings. As an employer negotiator. she represents employer organizations in negotiations, mediation and arbitration and assists with other labor relations and employment problems. Her work also extends in EEO, selection and performance evaluation systems. In 1979, Ms. Olsen was appointed by the Governor of the State of Minnesota as an employer representative to the Public Employment Relations Board (PERB). She was elected chairperson and served on the Board until 1983. Ms. Olsen has authored two major studies on managerial value systems, two major studies on employer job evaluation practices, and a guide on Equal Employment Opportunity and Affirmative Action for the U.S. conference of Mayors' Labor -Management Relations Service. Ann Antonsen Ann Antonsen, Research Associate, received a B.A. degree in Psychology from the University of Minnesota. Prior to joining Labor Relations Associates, Inc. she has worked in administration and management in retail operations, where she was responsible for supervision of the sales staff and overall management of several facilities. H. CURRENT CLIENTS 1. Labor Relations Associates, Inc. represents and/or provides consultant services for the cities of: Albert Lea Golden Valley Redwood Falls Andover Hastings Richfield Anoka Hopkins River Falls Arden Hills Inver Grove Heights Robbinsdale Barnesville Jordan Rosemount Bayport Kasson Roseville Belle Plaine La Crescent St. Anthony Blaine Lakeville St. James Bloomington - Zino Lakes St. Louis Park Brainerd Luverne St. Paul Park Brooklyn Center Madelia Savage Brooklyn Park Mankato Shakopee Burnsville Maplewood Shelly Chanhassen Mendota Heights Shoreview Chaska Minnetonka Shorewood Circle Pines Minnetrista South St. Paul Cloquet Moorhead Spring Valley Columbia Heights Morris Staples Cottage Grove Mounds View Stillwater Crookston New Brighton Thief River Falls Crystal New Hope Tracy Deephaven New Ulm Vadnais Heights Detroit Lakes North St. Paul Victoria East Grand Forks Northfield Virginia Eden Prairie Oakdale Wadena Edina Orono Waseca Elk River Owatonna Wayzata Ely Pelican Rapids West St. Paul Fairmont Pipestone Westbrook Faribault Plymouth Winona Fergus Falls Prior Lake Woodbury Forest Lake Ramsey Fridley Red Wing 2. Labor Relations Associates, Inc. represents and/or provides consultant services for the counties of: Douglas Douglas County Hospital Goodhue Hennepin 3. Labor Relations Associates, Inc. represents and/or provides consultant services for the metropolitan agencies of: Association of Metropolitan Municipalities Metropolitan Airports Commission Metropolitan Council Metropolitan Transit Commission Public Housing Agency of St. Paul 4. Labor Relations Associates, Inc. represents and/or provides consultant services for the public utilities of; Brainerd Lakef ield Moorhead Preston Spring Valley Westbrook 5. Labor Relations Associates, Inc. provides consultant, services to: League of Minnesota Cities Minnesota Department of Employee Relations APPENDIX A DEVELOPMENT OF COMPENSATION SYSTEM: Estimated costs based on gathering and/or review of relevant market data, computer analyses of alternative compensation systems, meetings with City officials at City and LRA, Inc. premises, and presentation of preliminary and final recommendations. TOTAL COST: $8,200.00 APPENDIX B DEVELOPMENT OF PERFORMANCE STANDARDS AND EVALUATION SYSTEM: Estimated costs of the development of performance standards and performance evaluation system. TOTAL COST: $51r100.00 APPENDIX C WORK PLAN: REVISION OF JOB DESCRIPTIONS TO IDENTIFY ESSENTIAL JOB FUNCTIONS UNDER ADA 1. Meet with Department Heads and their supervisors to develop a process whereby each of the City's job descriptions would be reviewed and those areas which need deletion, modification, or addition identified. Labor Relations Associates (LRA) staff along with City management would rewrite the descriptions for review by the Department Heads and supervisors. 2. Based on the revised job descriptions the "essential functions" of each job which must be performed by any incumbent will be identified and stated as part of the job description. In performing this process, a meeting would first be conducted by City Management and LRA with Department Heads, supervisors and employees on a Department by Department basis so that employees can assist management in the identification of the essential functions of each job. TOTAL COST: $4,950.00 COMPENSAHON SYSTEM DEVELOPMENT CITY OF ROSEMOUNT November 17, 1992 Purpose: To develop a performance and/or merit based compensation system for the City of Rosemount which will be consistent with Federal and Minnesota State Laws, general principles of equitable compensation and the City of Rosemount's financial resources. Background: The city of Rosemount is a growing community with staffing needs to meet service demands in the community. The City is not unlike other communities with limited financial resources not being able to meet these growing service demands. The City Council -understands and supports the need to employ and retain highly trained and professional employees to meet these service needs. In order to justly compensate these employees, while dealing with the financial restraints of its tax base, the City Council feels that it is essential to develop an employment compensation program that will meet these demands. The City currently has a compensation program in place which was developed approximately five years ago and had as its basis the comparable worth requirements of the State of Minnesota and the market analysis of other municipal pay/benefit programs. The City again finds itself in the throws of pay equity compliance and major changes in its administrative structure due to the local decision and community growth. The City Council feels it most appropriate to conduct a thorough review of its existing compensation program to determine how it relates to and complies with the "Local Government Pay Equity Act", internally -as individual city employee positions relate to one another and externally how employees are being or should be compensated relating to other governmental entities, the private sector and performance that the employee exhibits. The City Council understands the opportunity it has to work with the City employees in developing this program so that the employees, the City council and the taxpayers of Rosemount can work together in formulating a reasonable and equitable program. It is the further desire of the City Council that outside assistance in this process is necessary so that a credible and fair process is followed while insuring that all criteria utilized in establishing such a program is followed. This outside.assistance will not govern the process but provide technical assistance and guidance in the completion of the final program. 1 The following "work program" is necessitated to follow inthis process. The consultant will be asked to outline the expected opportunities for City Council and City staff involvement in this process to insure the City Council's ownership of the final program. WORK PROGRAM 1. Identify appropriate external market comparisons for selected benchmark jobs based on similar organizational structure, job responsibilities, scope of authority, financial, socio-economic, and other relevant factors. 2. Review salary relationships (wage and wage equivalents) between City employees. Identify patterns of comparison V which have contributed to existing compensation differentials. 3. Analyze and compare internal and external compensation levels and structures. Determine variance between internal and external market comparisons. 4. Provide guidance and make recommendations on how to incorporate and implement the results of the Job Evaluation Study currently being coordinated by the Metropolitan Area Management Association. Coordinate recommendations with the consulting firm the City may contract with to provide updated job values. 5. Develop preliminary recommendations for a City salary structure based on internal and external comparisons. Conduct statistical and other analyses to determine whether preliminary.recommendations comply with the "equitable" and "reasonable" compensation relationship standards required by, the State Local Government Pay Equity Act-, other State and Federal legislation, and with generally accepted principles of compensation equity(s). Develop recommendations which provide for performance standards, performance evaluation and salary adjustment opportunities within this system. 6. Develop recommendations which provide for performance standards, performance evaluation and compensation adjustments opportunities within this system. 7. Review employee job description and make recommendations for any changes based upon the recommended compensation program and State and Federal laws with regard to American Disabilities Act. to B. Revise recommendations as necessary to meet applicable legal and practical compensation requirements. 9. Present recommendations to City Council for their consideration and comments. The City Council must have opportunities to understand what the short term and long term effects of the proposed program will require and how the analysis and recommendation were developed. 10. Revise recommendations per agreement with City Council 11. Present final recommendation to City Council for final consideration and adoption. Project Timetable The City wishes that the project should be completed no later than 90 days from the authorized initiation date. Project Costs The consultant should provide estimated costs for the consultant's involvement in the project. If any of the Work Program elements can or should be completed and separated out for cost purposes the consultant should note these in the proposal. Project Consultant The consultant should provide information on those consultant employees which will be involved in the project and their background and experience. Any information on other governmental agencies that the consultant provides similar services for should also be provided. The consultant is requested to respond with a written proposal for the completion of the program and to make a verbal presentation to the City council on the proposal in order to have the Council fully understand the scope of the work program, its costs and expected "product" before proceeding. 9 i M E M 0 TO: Mayor McMenomy Councilmembers Willcox, Wippermann, Staats, Klassen FROM: Susan M. Walsh, Administrative Assistant DATE: December 14, 1992 SUBJ: Compensation Work Program Proposal This memorandum is a follow up to the Executive Summary (green sheet) with regards to Item 5B Compensation Work Program. Steve Jilk and I met with Cy Smythe this date with regards to his proposal. We discussed the three proposals and the costs for each and the relationship of each of the work plans to one another. I will list below each of the work plans, and Mr. Jilk and my recommendations regarding each work plan: WORK PLAN - DEVELOPMENT OF A COMPENSATION SYSTEM: (Item C of Cy Smythe's proposal) Each of the items of this proposal meet the work plan or request for proposal approved by Council and forwarded to Mr. Smythe. The only change will be the cost. Mr. Smythe reduced this cost to $6,100 rather than $8,200. This cost reduction was agreed to based upon my taking the responsibility of gathering and providing information to Labor Relations such as salaries from other cities or private industry. I may also assist with the computer analyses to determine which compensation system would work best for Rosemount. It is our recommendation, therefore, that Council authorize Labor Relations to develop a performance and/or merit based compensation system for the City. WORK PLAN - DEVELOPMENT OF PERFORMANCE STANDARDS AND EVALUATION SYSTEM (Item D of Cy Smythe's proposal) If this work plan is approved by the Council, Mr. Smythe and possibly other members of his staff would make recommendations for developing performance standards and an evaluation system that is unique to the positions within the City of Rosemount. In order to establish performance standards, staff from Labor Relations must meet with employees who work in the City's different positions. Mr. Smythe or his staff will also meet with employees and explain the evaluation system such as the overall objectives of an evaluation system and the importance of an evaluation system to the employee. It our my recommendation that Council authorize Labor Relations to proceed with this work plan. If the basis of the City's new salary system will be based upon a performance/merit based system, it is imperative that the City's evaluation system be one that includes the appropriate standards for evaluation, and one that all city employees are involved in the development of and hopefully have a good understanding of it. WORK PLAN - REVISE JOB DESCRIPTIONS TO IDENTIFY ESSENTIAL JOB FUNCTIONS UNDER AMERICAN DISABILITIES ACT (ADA): (Item E of Mr. Smythe's proposal.) We are recommending that Council not take action on this proposal at this time. This proposal would entail Labor Relations assisting with the rewriting of job descriptions for all our employees to meet requirements of ADA. Job descriptions must include essential functions of a job or the fundamental job duties of a position. These essential job functions are the key to determining if any applicant, with or without a disability, is qualified for a position. In order to determine essential functions, Labor Relations would meet with employees to find out what the essential functions of a position are Following our discussion, we agreed that some of the essential functions will surface when Labor Relations staff meets with employees to determine performance standards of a position. Following the development of performance standards and an evaluation system by Labor Relations, if authorized by Council, we would then determine what assistance, if any, would be required of Labor Relations. If Council approves with authorizing Labor Relations to proceed with the first two plans -- the development of a compensation system and the development of performance standards and evaluation system, the total cost would be $11,200.00. We are recommending the funding for the $11,200.00 would be expended as follows $7,500.00 1993 Budget Account 101-41320-01-307 (Administration Budget -budgeted for) 1,000.00 1992 Budget Account 101-41400-01-352 (City Clerk Budget) 800.00 1992 Budget Account 101-41410-01-319 (Elections Budget) 400.00 1992 Budget Account 101-41320-01-437) (Administration Budget) 1,500.00 1992 Budget Account 101-41110-01-598 (Council Budget) $11,200.00 TOTAL Since we only budgeted $7500 in 1993 for this purpose, we are requesting that the remaining $3700 be encumbered from the above accounts to 1993. Our review of these 1992 budgets reveals that these budgets will not experience a short fall by encumbering each of these amounts. If Council approves the use of the 1992 funds, your formal approval for encumbering these amounts would be requested of you at a later date. If Council approves the above recommendations, the appropriate actions would be as follows: MOTION TO APPROVE THE PROPOSAL RECEIVED FROM LABOR RELATIONS FOR THE DEVELOPMENT`OF A COMPENSATION SYSTEM AT A COST OF $6,100.00, AND FOR THE DEVELOPMENT OF PERFORMANCE STANDARDS AND EVALUATION SYSTEM AT A COST OF $5,100 WITH THE FUNDING TO BE EXPENDED FROM THE ACCOUNTS RECOMMENDED BY THE ADMINISTRATIVE ASSISTANT.