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h BRUHM W clay that works for ym Memo Date: May 27, 2010 To: Mayor David Jacobsen Councilmember Gina Bauman Councilmember Mary Burg Council Member Dave Phillips Council Member Char Samuelson From: City Manager Dean Lotter Assistant to the City Manager, Schawn Johnson Subject: Work Session Discussion Regarding the City of New Brighton's Compensation Plan At the June 1" City Council Worksession meeting, Mr. Rod Kelsey (Formerly of Riley, Dettmann & Kelsey LLC) will be in attendance to assist the City Council with gaining a better understanding of the City's employee compensation plan. In 2002, Mr. Kelsey was hired by the City of New Brighton as a consultant to assist City staff with the implementation of a new compensation plan. Mr. Kelsey is currently retired but has agreed to attend this meeting and share his knowledge in the area of public sector compensation. Over the years, Mr. Kelsey has worked with a number of local government agencies (City of Maple Grove, City of Arden Hills, City of Richfield, and many others) in creating compensation plans that are equitable and comply with all State Pay Equity requirements. City of New Brighton Compensation Plan Background Information: On May 6th, 2002, the City Council approved the hiring of Riley, Dettmann, and Kelsey to conduct a comprehensive study of the City's compensation (union and non- union) plan. The last time a similar study was conducted in the City of New Brighton was in the late 1980's when the State Pay Equity Act was instituted. In December of 2001, the City was notified by the State that it was out of compliance with the State's Pay Equity Act. The State of Minnesota then required the City to be in compliance with the Pay Equity law by November 15, 2002. Therefore, the City decided to conduct a compensation study during the 2002 calendar year. The 2002 compensation study involved both non-union and union employees completing a job description questionnaire about their position including major job responsibilities. There was a department head committee created to assist in reviewing the internal ranking, classifications, and the final plan. An employee committee was also established that included two members from each department. The employee committee provided review and comments to the consultant throughout the study. The City's current pay plan is based on a market comparison of nine select cities that are comparable to New Brighton in population size, services, age of community, and