Agenda - Council - 03/10/1998 - Laserfiche WebLink

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AUTHORIZATION TO ENGAGE CONSULTANT TO DEVELOP COMPENSATION PLAN By: Linda Waite Smith, Administrative Services Manager Background: The City of Ramsey's compensation plan contains salary ranges for each position employed in the City. The minimums and maximums of the ranges for most positions appear to have fallen, over time, significantly below those in other metro area communities in Ramsey's population group. If Rarnsey's salaries are not competitive, the City has trouble attracting and retaining good quality employees. During recent labor negotiations the AFSCME bargaining unit requested salary increases significantly above those typically being given right now in the metro area public sector. Part of the rationale for the request is that AFSCME members seem underpaid compared to the market. Granting an extraordinary percentage pay increase across the board seems ill-advised since some positions may be below the market rate; others may be at or above the market rate. It also makes sense to examine the entire compensation plan so that any changes are integrated into a cohesive plan, especially in light of Minnesota's pay equity requirements. Finally, the cost of bringing pay rates into better alignment with the market may require a phased, multi-year program that needs to be built into the annual City operating budget. Analyzing market rates for salaries is not a quick or simple process. Information gathered must be up-to-date and comparison of position titles has to be expanded to compare position duties to ensure valid comparisons. Staff Recommendation: Staff recommends that City Council authorize the city administrator to enter into an agreement with Labor Relations Associates, Inc. to develop a compensation plan for City of Ramsey employee positions. The estimated time required to complete the project is 12 weeks. The estimated cost is $6,945 and would be paid from the Professional Services line item of the Administrative Services budget. Committee Action: Recommend that City Council authorize the city administrator to enter into an agreement with Labor Relations Associates, Inc. to develop a compensation plan for City of Ramsey employee positions at an estimated cost of $6,945, to be paid from the Professional Services line item of the Administrative Services budget.