HomeMy WebLinkAboutItem 4 (3)City of Lakeville
Human Resources
Memorandum
To: Mayor and City Council
Justin Miller, City Administrator
From: Tammy Schutta, Human Resources Manager
Date: June 26, 2017
Subject: Compensation and Benefits Study
Purpose
In 1984 the Minnesota Legislature passed a bill extending pay equity to local government in
the State. The law requires each local government to analyze its pay structure for evidence of
inequities and to report this information to the Minnesota Department of Management and
Budget (MMB).
The State of Minnesota Local Government Pay Equity Act requires cities to maintain a
classification and compensation plan to maintain pay equity compliance. The City recently
submitted the 2016 Pay Equity report and we are in compliance.
The City is currently using RDK Job Evaluation System. Job classifications are assigned points
based on the following factors:
• Formal Preparation and Experience
• Decision Making
• Thinking Challenges and Problem Solving
• Interactions and Communications
• Work Environment
As of 2008, the job evaluation system is no longer supported by RDK and the City hasn’t
replaced it with another system.
Over the years, the Personnel Committee has reviewed job descriptions and compensation
relevant to individual positions. However, staff is recommending that a comprehensive
compensation and benefits study be completed. It is important to analyze the City’s
compensation plan to evaluate for internal and external equity (are we competitive with the
market). To be effective, a compensation plan must be perceived by employees as fair,
competitive in the market, accurately based and easy to understand. This study would also
require a thorough review of all position descriptions.
Compensation Philosophy
An important component of any compensation and benefits plan is the compensation
philosophy of the organization. The City of Lakeville City Council has not adopted a formal
compensation philosophy.
As part of the process, the Personnel Committee is recommending the City Council consider
adopting a formal compensation philosophy and including it in the RFP. The development of
the City’s compensation philosophy could also be led by a consultant hired for the
compensation study.
Mayor and City Council Salary Review
The Lakeville City Council salaries were last reviewed and updated January 1, 1999. Early this
year, the Council requested staff to conduct a Mayor and City Council salary survey. The
following salary information was obtained from the LMC 2017 Salary & Benefits Survey:
Mayor and City Council salary changes are established by ordinance and would take effect
after the next regular city election (i.e. January 2019).
City Council Health Insurance Coverage
Staff has also been asked to provide information regarding the possibility of adding
Lakeville’s elected officials to the City’s employee health insurance coverage.
Organization Population Mayor Salary
City Council
Salary Additional Payment
Bloomington 87224 $26,400 $12,396
Brooklyn Park 80215 $17,100 $11,400
Maple Grove 65155 $15,500 $13,500
Shakopee 40254 $15,000 $7,500 $50.00 per day for each Non-Council meeting they attend
Plymouth 74592 $14,336 $10,407
Blaine 63180 $14,314 $10,500
Coon Rapids 62527 $14,000 $12,250
Eagan 67509 $13,624 $10,005
Edina 50766 $13,500 $10,740
Eden Prairie 63187 $13,500 $10,740
Woodbury 66974 $13,334 $9,660
St. Louis Park 48354 $12,091 $6,977 $4,495 additional for serving on EDA
Minnetonka 51647 $12,000 $9,000
Burnsville 61908 $12,000 $8,400
Apple Valley 50161 $11,784 $8,436
Lakeville 59991 $9,996 $8,664 $25 per HRA meeting
$14,280 $10,036
Source: LMC 2017 Salary & Benefits Survey
While not the norm, there are some Twin Cities municipalities that include their mayors and
city councils in their health insurance coverage. Cities include Apple Valley, Bloomington,
Burnsville, Columbia Heights, Eagan, Fridley, New Brighton, and Stillwater.
As part of the compensation and benefits study, the Mayor and City Council may want to
consider additional review of their salary and health insurance options.
Budget
There is currently $30,000 available in the 2017 budget for a comprehensive job classification,
evaluation, compensation and benefits study. City staff would provide assistance throughout
the study to keep costs down and to ensure the project is completed by the set deadline.
Recommendation
Solicit proposals for professional services for the development and implementation of a
compensation philosophy, job classification, evaluation, compensation and benefits system.
1. Phase I: Define the City of Lakeville’s compensation philosophy.
2. Phase II: Job descriptions reviewed and updated to assure compliance with ADA, State
and Federal requirements. Review/establish job evaluation points and process.
3. Phase III: Market study and development of pay plan.
City of Lakeville
REQUEST FOR PROPOSALS (RFP)
JOB CLASSIFICATION
AND
COMPENSATION STUDY
DRAFT
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GENERAL INFORMATION
1. The City Council of the City of Lakeville is accepting proposals for a Job Classification & Compensation
Study. This study will assist the City to:
• Analyze and update its existing job classification system;
• Maintain pay equity compliance;
• Ensure competitiveness with the external market; and
• Determine a compensation plan implementation strategy.
2. Minor revisions to original proposals, if requested by the City, may be negotiated following the
proposal deadline and prior to being submitted to the Council for approval.
3. All proposals must comply with Federal and State regulations pertaining to compensation standards,
including but not limited to pay equity legislation, ADA, and FLSA.
4. Four (4) copies of your proposal will be accepted until 4:30 p.m. on (insert date) in the office of the
following: City of Lakeville, Attention: Tammy Schutta, Human Resources Manager, 20195 Holyoke
Avenue, Lakeville, MN 55044. Proposal should be labeled “City of Lakeville Proposal-Job Classification
and Compensation Study 2017.”
5. Personnel Committee, City Administrator, and Human Resources Manager will review proposals,
interview, and recommend a consultant to the Council in (insert month). If you have any questions
concerning the specifications, etc. please contact Tammy Schutta, Human Resources Manager, 952-
985-4491.
6. The City reserves the right to accept or reject any and all proposals that a re in the best interest of the
City and its employees. The consultation award will be based upon, but not necessarily limited to,
rates, proposed options and methodology, project design, timeline, and the experience of the
Consultant with municipalities and similar governmental instrumentalities and labor markets.
PROJECT BACKGROUND AND GOALS
The City of Lakeville is currently using Riley, Dettmann, & Kelsey Job Evaluation System. This job evaluation
system was last reviewed in 2007. Lakeville has been one of the fastest growing communities in the state. The
City is conveniently located south of the Interstate 35E and 35W split with a population of approximately
60,633. The City has approximately 87 position descriptions which are subject to the State of Minnesota Pay
Equity Compliance requirements. The position titles are listed at the end of this RFP for all regular full-time,
part-time, seasonal, and internship positions.
Lakeville employs 203 full-time employees. Of this, 98 employees are organized in the following unions:
• Teamsters Local No. 320 which represents our Public Works and Parks Department Maintenance II
employees.
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• Law Enforcement Labor Services Local 128 which represent our Police Officer Unit.
• Law Enforcement Labor Services Local 177 which represent our Sergeant Unit.
• Law Enforcement Labor Services Local 384 which represent our Lieutenant Unit.
Approved 2016- 2017 collective bargaining agreements will expire December 31, 2017.
Non-exempt, exempt, and union positions are paid on a step program. The City has been in compliance with
pay equity requirements in the past. Considering the current compensation system and step schedule, the City
of Lakeville may like to consider alternative compensation plans.
Throughout the years there have been several changes in position classifications and compensation schedule
adjustments. There is a need to have the entire job evaluation and compensation system reviewed by an
outside professional consultant. The City may also want to explore various methods of payment such as merit
vs. step systems. An Open Range structure may be an option.
The goal would be to execute a complete plan and process audit to achieve the new plan and process
development, including:
• Evaluate each position utilizing an up to date position description.
• Create an opportunity for management and employee input through utilizing key participants .
• Compile and analyze market comparables and competitive data.
• Ensure state and federal regulatory compliance.
• Draft new design according to City philosophy.
• Create a transition and implementation plan .
• Provide necessary tools to manage program going forward .
Employee and management involvement through participation and informational meetings on the process
and outcomes will be an important component to the success and acceptance of any outcome.
SCOPE OF WORK
A. Provide professional services with integrative support services to evaluate and analyze needs, design,
develop, and implement a job evaluation and compensation system that includes the following:
• Evaluation and analysis of City needs and philosophy.
• A review of the current position evaluations with recommendations for necessary revisions.
• Objective classification ranking of each position and the provision of internal pay equ ity.
• Evaluation of existing job descriptions and the recommendations of revisions to assure
compliance with ADA and other State and Federal requirements.
• Provide a wage/labor market survey and the analysis of supporting data for the development of
a pay structure while assuring internal and external equity and compliance with State Pay
Equity compensation standards.
• Provide recommendations and options for a newly designed evaluation and compensation
system. Include the feasibility of implementing a performance based compensation system or a
performance based component of the system.
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• Provide recommendations on a system for determining the validity for requests for
reclassification and/or compensation changes.
• Review/determine exempt and non-exempt status for each position. Provide written
documentation outlining the rationale used to determine status for City files.
• Provide implementation support, which would include, but not be limited to, City Council,
employee groups and union groups presentations and maintenance training on the system.
• Post contract services involving review of new job descriptions and determination of points and
salary for the new position.
B. Establish and provide concrete schedules for each of the above proposed developments.
C. Present findings and recommendations, including written and oral reports and policies at various
meetings such as employee and City Council meetings.
D. Propose solid contract terms. Including an itemized fee schedule for work included in
the scope of work and a payment plan based on measurable contract milestones.
CONSULTANT SUBMITTAL
The proposal shall contain the following information:
A. Provide references of municipalities in the State of Minnesota who have implemented and are
currently utilizing the compensation system being proposed or a similar system designed, developed,
and implemented by your organization. Include the name and phone number of the contact person at
each municipality, as well as a description of the services performed, implementation date, and the
names of the personnel from your office that worked on the project at each municipality.
B. Names and relative backgrounds of the personnel to be assigned to the project.
C. Information stating your organization’s approach to the de velopment of a compensation system for
the City of Lakeville. Include information and outcome documents on the job evaluation system being
proposed as well as sample job descriptions, policies and procedures, and questionnaires employees
will be required to complete. Also include information on how your organization will handle evaluation
of each aspect identified in the job description and questionnaires.
D. Identify your approach to creating union and non-union involvement with the development of the
position classifications and compensation schedules.
E. Identify a timeline for the completion of each component in the process as well as implementation
guidelines.
F. The proposal should clearly define the timelines, proposed fees, and the scope of services to b e
provided during each of the following specific project components:
1. Introduction and Project Orientation.
2. Job Analysis and descriptions for full-time, part-time, seasonal, and internships.
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3. Position Classifications/Ranking/Grades/Evaluation.
4. Develop list of comparable organizations.
5. Market Study.
6. Design compensation structure according to Lakeville compensation philosophy
7. System testing for equity and fairness
8. Preparation of final documents for the plan, including presentation, policy, guidelines and
procedures for administration (such as how the plan is adjusted for cost of living and how
employees advance through the ranges and any other pertinent information). Any written and
computerized data and supporting information must be submitted as appropriate.
9. Training on the system maintenance and updating such as position additions and wage
structure updates.
10. System Implementation.
11. Future assistance that can be provided by your organization.
a) Proposals shall clearly define additional services and/or reimburs able costs not
included in the basic fees, including any hourly rates or fees for post contract services.
b) Proposals shall include a “not to exceed” lump sum fee protection.
c) Identify cost estimates for all aspects including potential areas in which the City of
Lakeville staff can provide assistance resulting in cost savings to the City.
PROJECT COMPLETION
It is the intent of the City to provide as much support and assistance to the consultant to ensure that the
project is completed by (insert date).
OTHER
A. Questions regarding this Request for Proposal should be directed to:
Tammy Schutta
Human Resources Manager
City of Lakeville
20195 Holyoke Ave
Lakeville, Minnesota 55044
Telephone: 952-985-4491
tschutta@lakevillemn.gov
B. The City of Lakeville reserves the right to reject any and or all proposals for any, or no reason, and
furthermore reserve the right to accept any proposal deemed to be in the best interest of the City.
C. Four (4) copies of the proposal are to be submitted by 4:30 p.m. on (insert date), to Tammy Schutta at
the above address.
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D. The City is not responsible for any costs incurred by the contractor in the preparations and submission of
the proposal.
E. Finalists may be requested to make a presentation to the Personnel Committee and/or employee sub-
committee for evaluation.
F. All materials submitted in response to the RFP become the property of the City and is subject to the
Minnesota Government Data Practices Act, Minnesota Statutes Chapter 13.
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CITY OF LAKEVILLE JOB POSITION TITLES
1. ADMINISTRATION
• City Administrator (1)
• Assistant City Administrator (1)
• City Clerk (1)
• Senior Administrative Assistant/Deputy City
Clerk (1)
2. COMMUNICATIONS
• Communications Manager (1)
• Marketing Specialist & Events Coord (1)
• Web Communications Specialist (1)
• Video Production Specialist (1)
• Video Production & Tech Specialist (1)
3. FINANCE
• Finance Director (1)
• Assistant Finance Director (1)
• Senior Accountant (3)
• Accountant (1)
• Accounts Payable Technician (1)
• Utility Billing Technician (1)
• Utility Billing/AR Technician (1)
4. COMMUNITY & ECONOMIC
DEVELOPMENT:
• Community and Economic Development
Director (1)
• Economic Development Specialist (1)
• Senior Administrative Assistant (1)
• Planning Director (1)
• Associate Planner (2)
• Planning Assistant/Code Enforcement (1)
• Building Official (1)
• Assistant Building Official (1)
• Senior Building Inspector (2)
• Building Inspector (2)
• Senior Administrative Assistant (1)
• Administrative Assistant (1)
5. FIRE
• Fire Chief (1)
• Assistant Fire Chief (1)
• Fire Marshal (1)
• Fire Inspector (1)
• Senior Administrative Assistant (1)
• Administrative Assistant (.6)
• Volunteer Firefighters (##)
6. HUMAN RESOURCES
• Human Resources Manager (1)
• Benefits Specialist (1)
• Payroll Technician (2)
• City Receptionist (1.6)
• Administrative Assistant (.4)
7. Information Systems
• IS Manager (1)
• IS Systems Administrator (1)
• IS Technician (2)
8. LIQUOR DEPARTMENT
• Liquor Operations Director (1)
• Assistant Liquor Operations Director (1)
• Liquor Store Manager (2)
• Assistant Store Manager (5)
• Inventory Control Technician (1)
• Lead Sales Associate (9)
• Sales Associate (21)
9. PARKS DEPARTMENT
• Parks & Recreation Director (1)
• Parks Superintendent (1)
• Parks Supervisor (1)
• Parks Maintenance II (11)
• Administrative Assistant (1)
• Arts Center Manager (1)
• Administrative Assistant (1)
• Recreation Program Supervisor (1)
• Recreation Program Coordinator (2)
• Senior Administrative Assistant (1)
• Administrative Assistant (2)
• Facility Attendant (PT)
10. POLICE DEPARTMENT
• Police Chief (1)
• Deputy Police Chief (1)
• Lieutenants (4)
• Sergeants (6)
• Patrol Officers (46)
• Business Manager (1)
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• Police Records Analyst (1)
• Senior Administrative Assistant (.7)
• Administrative Assistant (4)
• Evidence Technician (1)
• Community Services Officer (2 FTE & 5 PT)
11. PUBLIC WORKS DEPARTMENT
• Public Works Director (1)
• Utilities Superintendent (1)
• Utilities Supervisor (1)
• Utilities Maintenance II (13)
• Administrative Assistant (1)
• Streets Superintendent (1)
• Streets Supervisor (1)
• Streets Maintenance II (13)
• Administrative Assistant (1)
• Fleet Supervisor (1)
• Service Technicians (5)
• City Engineer (1)
• Senior Project Engineer (2)
• Civil Engineer (1)
• Environmental Resources Manager (1)
• Environmental Resources Specialist (1)
• Environmental Resources Technician (1)
• Administrative Assistant (1)
• Construction Services Superintendent (1)
• Senior Construction Representative (2)
• Construction Representative (1)
• Graduate Engineer (1)
• GIS Supervisor (1)
• GIS Analyst (1)
• City Forester (.7)
• Public Works & Facilities Coordinator (1)
• Facility Maintenance Supervisor (1)
• Facility Attendants (PT)
12. PART-TIME/SEASONAL POSITIONS-
SEPARATE PAY SCALE
• Seasonal Recreational positions (##)
• Seasonal Public Works Maintenance I (##)
• Seasonal Public Works Maintenance II (##)
• Ice Rink Supervisor (##)
• Ice Rink Attendant (##)
• Communications Intern
• Engineer Intern
• Environmental Intern