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042406 CC WS2 Min CITY OF SHOREWOOD CITY COUNCIL WORK SESSION MONDAY, APRIL 24, 2006 5755 COUNTRY CLUB ROAD CONFERENCE ROOM 8:00 P.M. or immediately following the Regular City Council meeting MINUTES 1. CONVENE WORK SESSION MEETING Mayor Love called the meeting to order at 8:36 P.M. A. Roll Call Present: Mayor Love, Councilmembers Callies, Lizee, Turgeon, and Wellens; Administrator Dawson; Finance Director Burton; and Director of Public Works Brown Absent: None B. Review Agenda Without objection from Council, Mayor Love proceeded with the Agenda for the meeting. 2. COMPENSATION STUDY Administrator Dawson stated the City had engaged Labor Relations Associates, Inc., to perform a compensation study, and one of the purposes of the study was to replace the City's rigid tenure-bases step system for salaries with a system that was designed to reward performance and provide flexibility for salaries at time of hire. He noted the process had been lengthy, and had involved all employees and supervisors. He then stated Ann Antonsen, who conducted the study, would review the compensation study findings. In response to a question from Councilmember Callies, Administrator Dawson explained Council would need to formally adopt a new pay for performance systems with adjusted salary ranges, and this would occur at a Council meeting scheduled in the near future. Ms. Antonsen highlighted the Compensation Study (as detailed in the City of Shorewood Classification and Compensation Study report dated April 24, 2006). She provided an overview of the study process. She noted individual performance and job seniority did not factor into a position's evaluation. Ms. Antonsen noted that Minnesota was the only state with a Pay Equity Act. She reviewed the criteria used to select the cities asked to participate in the market survey study. In response to a question from Councilmember Turgeon, Ms. Antonsen stated for some of the positions community size of the cities participated in the market survey had little bearing on the position evaluation, noting the duties performed would be the same. She explained the updated job descriptions were distributed to market survey participants, and that each survey participant was asked to provide its salary range for similar positions. She also explained the Deputy Clerk / Administrative Assistant position had unique duties it was asked to perform relative to other communities. She also explained the market survey salary information was used as a guideline; it was adjusted where appropriate to reflect the uniqueness of the City's positions. CITY OF SHORE WOOD WORK SESSION MEETING April 24, 2006 Page 2 of3 In response to a question from Councilmember Turgeon, Ms. Antonsen explained the Director of Liquor Operations position had only been compared to other municipal liquor operations positions. In response to a question, Administrator Dawson explained the bonus for the Director of Liquor Operations was discontinued two years ago. Ms. Antonsen went on to explain the following data was gathered for each position as part of the market comparison. She noted the City's stability pay, similar to longevity pay, was not a very common practice. The recommended wage schedule included a market average maximum rate, a minimum rate which was 76% of that market rate, and a maximum rate which was 110% of that market rate. Antonsen then explained the recommended compensation plan eliminated the stability pay component and created a component that rewarded exceptional performance. The result would move good performers through the positions salary range faster, a goal for the revised compensation program. She stated "theoretically" if a new hire started at the minimum rate, an average performer would take approximately five years to reach the market rate and an exceptional performer would reach the market rate more quickly. In response to a question from Councilmember Wellens, Ms. Antonsen explained the average maximum wage was determined based on the maximum average rate for the position among the cities surveyed. She stated the average wage paid would have too much variance because the length of time in the position impacted the wage paid. She noted longevity pay and overtime pay were not included in the maximum rate. She also noted the maximum wage rate is what is reported to the State for Pay Equity Act compliance. Discussion ensued with regard to how the City's wage rates compared to the average market maximum rates. A few positions were significantly less (particularly in liquor store operations) and a few positions were slightly higher. Ms. Antonsen noted the gap differences were less when compared to the City's maximum rate including stability pay. Councilmember Turgeon stated the main reason for the study was to move toward a pay for performance system. She also stated she would like to have some incentive for good performers once they had reached the salary range maximum. Ms. Antonsen explained that was the reason for the market maximum range being 10% above the market rate, and the salary rates needed to be reviewed yearly to ensure it was staying in sync with the cost of living. Councilmember Turgeon expressed concern with the possibility that supervisors would consider all their employees to be great performers. Administrator Dawson stated implementing the recommended salary guidelines would support the performance appraisal process. He also stated that currently, average performers received economic adjustments or stability pay adjustments when they had reached the maximum wage rate, and there was nothing in the system to recognize superior performance. Ms. Antonsen stated those positions substantially below the market wage rate should be moved toward the market rate at a faster pace. Mayor Love clarified the objective of the meeting was for Council to come to consensus on accepting the report, and action to implement the recommendations of the report would be taken at future meetings. CITY OF SHORE WOOD WORK SESSION MEETING April 24, 2006 Page 3 of 3 In response to a question from Councihnember Wellens, Ms. Antonsen explained the city survey participants that responded had no more than one municipal liquor store in the city. There was consensus amongst Councilmembers to accept the report as presented. In response to a question from Mayor Love, Administrator Dawson explained the report would be used as a baseline for future implementation discussions and the discussions would probably start within a month. 3. OTHER There was no other business for discussion. 4. ADJOURN Turgeon moved, Callies seconded, Adjourning the City Council Work Se~~eeting of April 24, 2006,. at 9:09 P.M. Motion passed 5/0. (. /.1 RESPECTFULLY SUBMITTED, II) I j Christine Freeman, Recorder ~~./ Woody Love, Mayor ATTEST: