HomeMy WebLinkAbout5F Resolution Approving 2010 Pay Equity Report04�__.c
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U �'' 4646 Dakota Street SE
Prior Lake, MN 55372
CITY COUNCIL AGENDA REPORT
MEETING DATE: January 18, 2010
AGENDA #: 5F
PREPARED BY: Kelly Meyer, Asst. City Manager
PRESENTED BY: Kelly Meyer
AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION APPROVING THE CITY OF
PRIOR LAKE 2010 PAY EQUITY REPORT.
DISCUSSION: Introduction
The purpose of this agenda item is to request Council approval of a resolution ap-
proving the City's 2010 pay equity report and directing that it be submitted to the
State Office of Management & Budget.
History
In 1984, the State Legislature passed the Local Government Pay Equity Act which
requires all public jurisdictions (cities, counties, schools) to eliminate any sex -
based wage inequities in compensation. Subsequently, each local government unit
is required to submit current pay equity reports once every three years.
Pay equity, sometimes referred to as comparable worth, is a method of eliminating
discrimination against women who are paid less than men for jobs requiring com-
parable levels of expertise. Achieving pay equity usually means (1) that all jobs are
evaluated and given points according to the level of knowledge and responsibility
required to do the job; and (2) that salary adjustments will be made if it is discov-
ered that women are consistently paid less than men for jobs with similar points.
The Council will recall that in 2007, the City completed a classification and com-
pensation study that, in part, reviewed and updated the City's existing classifica-
tion or point system. This included an evaluation and review of each position, in-
cluding feedback from employees on minimum educational and experience re-
quirements, job responsibilities, organizational impact, working conditions, and
work complexity, among others. The updated positions were then evaluated and
input into a new point structure to be used for grading existing and future positions,
as well as for pay equity reporting purposes.
Current Circumstances
The City of Prior Lake last reported pay equity in 2007 and is therefore required to
report by January 31, 2011 using data effective on December 31, 2010.
The Pay Equity report contains the results of four compliance tests that the State
Office of Management & Budget uses to determine whether a city is in compliance
with the pay equity requirements. MMB has provided software that allows each
jurisdiction, once the appropriate data has been entered, to generate these com-
pliance reports. Once these reports are complete, they must be approved by the
governing body and then submitted to MMB. In addition, a notice must be sent to
all exclusive representatives and be posted in a prominent location for at least 90
days from the date the report was submitted. This notice indicates that the City is
submitting a pay equity implementation report to MMB.
The four compliance tests required in the pay equity implementation report are de-
scribed below.
Completeness and Accuracy Test - determines whether jurisdictions have filed
reports on time, included correct data and supplied all required information to
MMB.
Statistical Analysis Test - compares salary data to determine if female classes
are paid consistently below male classes of comparable work value (job points).
The minimum requirement to pass this test is an underpayment ratio of 80 %. The
City's ratio is 106.25 %.
Salary Range Test - compares the average number of years it takes for em-
ployees to move through salary ranges established for female classes compared
to male classes. The result of this test must either be 0 %, or 80% or greater. The
City's test result is 94.87 %.
Exceptional Service Pay Test - compares how often individuals in male classes
receive longevity or performance pay above the normal salary range compared to
how often individuals in female classes receive this type of pay. The test result
must show either 0% or 80% or more to be acceptable. The City's test result is
0 %.
Conclusion
The current salary plan has been subjected to the four tests described above. The
city's salary plan appears in compliance with all four of the compliance tests; and
therefore, the City of Prior Lake should be in compliance with the State's Pay Equi-
ty requirements.
ISSUES: Without addressing the socio- economic benefit of the pay equity law, it does
represent an unfunded mandate from the State. In fact, Minnesota is the only state
that still has a pay equity statute in place. The cost of non - compliance is high,
both in terms of litigation from aggrieved parties, or actions taken by the State Of-
fice of Management & Budget. Prior Lake was fined years ago for rendering a late
report.
The City has had an established classification /compensation structure in place for
many years. A review and verification of the City's classification /compensation
plan was conducted in 2007. With very few adjustments, the study verified that the
City's system had maintained pay equity compliance. Since that time, as new posi-
tions and salary ranges are established or revised, staff evaluates where such po-
sitions should be classified with the intention of meeting State pay equity require-
ments.
It is important to remember that pay equity laws in Minnesota address sex -based
wage disparities and not all types of wage disparities. Pay equity does not replace
collective bargaining and does not address all compensation issues or challenges.
While the City always considers equity as a basic component of its overall pay phi-
losophy, it is only one factor when considering an overall compensation strategy.
FINANCIAL Other than staff and consultant time to prepare the report, the only other financial
IMPACT: impact would be if the City failed to meet the submittal deadline, or was otherwise
found out of compliance.
ALTERNATIVES: The Council has the following alternatives:
1. Adopt the Resolution approving the City of Prior Lake Pay Equity Report.
2. Defer action on this item and request additional information. The report must
be submitted by January 31, 2011 or the City will incur a penalty.
RECOMMENDED
MOTION: Alternative 1.
R vi we by
Frank B les, Manager
O� FRIO
U
4646 Dakota Street SE
Prior Lake, MN 55372
RESOLUTION 11 -xxx
A RESOLUTION APPROVING THE CITY OF PRIOR LAKE
2010 PAY EQUITY IMPLEMENTATION REPORT
Motion By:
Second By:
WHEREAS the Local Government Pay Equity Act requires the City of Prior Lake to submit a Pay Equity
Implementation Report to the State Office of Management & Budget (MMB) not later than January 31,
2011; and
WHEREAS the necessary reports have been completed and posting and notification requirements have been
met; and
WHEREAS the Mayor and City Council have reviewed the Pay Equity Implementation Report.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA that:
1. The recitals set forth above are incorporated herein.
2. The City Council hereby approves the Pay Equity Implementation Report, and directs staff to report the City's
pay equity performance electronically to the State Office of Management & Budget.
PASSED AND ADOPTED THIS 18th DAY OF JANUARY 2011.
YF.q
nr•]
Erickson
Erickson
Hedberg
Hedber
Keeney
Keene
M ser
M ser
Soukup
Souku
City Manager, City of Prior Lake
Phone 952.447.9800 / Fax 952.447.4245 / www.cityofpriorlake.com
January 11, 2011
Ms. Kelly Meyer
Assistant City Manager
City of Prior Lake
4646 Dakota Street SE
Prior lake, MN 55372
Dear Ms, Meyer:
Springsted Incorporated
380 Jackson Street, Suite 300
Saint Paul, MN 55101 -2887
Springsted
Tel: 65t -2 ?3 3000
Fax: 651- 223.3002
www.spdngsted.com
Springsted has prepared the City's Pay Equity Implementation Report and utilized the Minnesota Management and
Budget pay equity software to analyze the City's 2010 wage information. There are four tests for compliance with
the State of Minnesota local Government Pay Equity Act. Following are the tests and the results:
1. Completeness and Accuracy Test: The City will pass this test if the report is submitted electronically by January
31, 2011. Springsted will submit the report for the City upon approval of the report by the City Council.
2, Statistical Analysis Test: To pass this test the City must have 6 or more male classes and at least one class with
an established salary range and an underpayment ratio of 80 or more. The City's underpayment ratio is 106.25,
which is well above the established standard, therefore the City would be found in compliance with this test. I
3. Salary Range Test: For organizations with established salary ranges forpositions, this measures whether male
classes are reaching the top of their salary range faster than female classes. This result must either be 0 or
above 80 to be found in compliance. The results of the salary range test for the City is 94.87, which is also
above the established standard and indicates that the City would also pass this test.
4. Exceptional Service Pay Test: This test analyzes whether there Is a larger percentage of male classes receiving
longevity or performance pay than female classes. For this test the result must either be 0 if less than 25% of
male classes receive exceptional service pay or be above 80. The results of this test are 0 as only 7.69 % of the
City's male classes receive exceptional service pay and indicates that the City also passes this test.
Please review the enclosed information and if there are no changes please have the report reviewed and approved
by the City Council prior to January 31, 2011. Springsted will submit the report to the Department of Management
and Budget upon notification of approval by the City Council.
Please let me know if you have any questions or concerns;
Sincerely,
OgAA 0
Ann Antonsen, Vice President -
Consultant
Public Sector Advisors
Compliance Report
Jurisdiction: Prior Lake Report Year: 2011
4646 Dakota Street SE Case: 1 - 2011 Data (Private (Jur Only))
Prior Lake MN 55372
Contact. Kelly Meyer Phone: (952) 447.9800 E -Mail: krnoyer@dtyofpOorlake.com
The statistical analysis, salary range and exceptional service pay test results are shown below. Part l is general information
from your pay equity report data. Parts II, III and IV give you the test results.
For more detail on each test, refer to the Guide to Pay Equity Compliance and Computer Reports_
1. GENERAL JOB GLASS INFORMATION
Male Female Balanced All Job
Classes Classes Glasses Classes
# Job Classes 26 17 1 44
# Employees 62 21 3 86
Avg. Max Monthly 6,248.03 5,753.43 6,079.92
Pay per employee
ll. STATISTICAL ANALYSIS TEST
A. Underpayment Ratio = 106.25
Male f=emale
Classes Classes
a. # At or above Predicted Pay 13 9
b. # Below Predicted Pay 13 8
c. TOTAL 26 17
d. % Below Predicted Pay 50.00 47.06
(b divided by c = d)
*(Result is% of male classes below predicted pay divided by % of female classes below predicted pay.)
B. T -test Results
Degrees of Freedom (DP) = 81 Value of T -1.126
a. Avg. diff. in pay from predicted pay for male jobs - $10
b. Avg. diff. in pay from predicted'pay for female Jobs = $ 82
Ill. SALARY RANGE TEST = 94.87 (Result is A divided by B)
A. Avg. # of years to max salary for male jobs = 8.54
B. Avg. # of years to max salary for female jobs = 9.00
IV. EXCEPTIONAL SERVICE PAY TEST= 0.00 (Result is B divided by A)
A. '% of male clesses receiving ESP 7.69
B. % of female Gasses receiving ESP 0.00
*(If 20% or less, test result will be 0.00)
Job
Class
Nbr
N br
Title
Malei
1
Utility Billing Clerk
0
2
Secretary - Recreation
0
3
Community Service Officer
2
4
Police Records Clerk -
- 0
5
Secretary - Maintenance
0
6
Secretary/Reoeptionist - At
0
7
Senior Utility Billing Clerk
0
8
Accounting Clerk
0
9
Developrnent Services Ast
1
10
Maintenance 5
15
11
streets & Utilitiles Mainten:
2
12
Mechanic
2
15
Engineering Tech 11
1
13
Water Facilities Operator
1
14
Sewer Facilities Operator
1
16
Public Works Admin. Spec
0
17
Police Records Manager
0
18
Recreation Programmer
0
20
Building Inspector
1
21
Patrol Officer
15
22
Administrative Assistant
0
23
Engineering Tech IV
1
24
Code Enforcement Oftioer
1
25
Communications Coordina
1
26
Maintenance Foreman - Pt
1
27
Malnt. f=oreman - Streets a
1
28
Planner
1
29
Recreation Coordinator
0
30
Accounting Supervisor
0
31
Parks & Fleet Main. Super
1
32
Water Resources'Engineej
4.00
1
34
Streets & Utilities
Main. Su
1
35
Police Sergeant
3
33
Building Official
1
36
Assistant City Engineer
1
37
Assistant City Manager
0
38
Police Lieutenant
1
39
Building & Transp. Serv. D
0
40
Community Dev & Nat. Re
0
41
Fire Chief
1
42
Finance Director
0
43
Public Works Dir./ City En£
1
44
Police Chief
1
45
City Manager
1
Job Number Count: 44
Prior Lake
Job Class Data Entry Verification List LGID 959
Case: 2011 Data
Nbr Class Jobs Min Mo Max Mo Yra to Max Yrs of ' Exceptional
111
$3,117.00
$3,817.00
9.00
0.00
120
$3,117.00
$3,817.00
9.00
0.00
120
$3,117.00
$3,817.00
8.00
0.00
120
$3,117.00
$4,692.00
9.00
0.00
123
$3,117.00
$3,817.00
9.00
0.00
123
$3,117.00
$3,817.00
9.00
0.00
140
$3,280.00
$4,891.00
9.00
6 .00
160
$3,280.00
$4,891;00
9.00
0.00
160
$3,280.00
$4,891.00
9.00
0.00
175
$3,540.00
$5,214.00
9.00
0.00
185
$3,659.00
$5,356.00
9.00
0100
185
$3,659.00
$5,356.00
9.00
0.00
203
$4,013.00
$5,789.00
9.00
0100
210
$4,013.00
$5,789.00
9.00
0.00
'210
$4,013.00
$5,789.00
9.00
0.00
220
$3,914.00
$4,793.00
0,00
0.00
225
$3,914.00
$5,668.00
9.00
0.00
230
$4,377.00
$5,358.00
9.00
0.00
271
$4,703.00
$6,633.00
9.00
0.00
280
$3,841.00
$6,223.00
4.00
0.00
285
$4,588.00
$6,493.00
9.00
0.00
285
$4,703.00
$6,633.00
9.00
0.00
293
$4,703.00
$6,633.00
9,00
0
305
$4,588.00
$6,493.00
9.00
0.00
308
$4,588.00
$6,493,00
9.00
0.00
308
$4,588.00
$6,493.00
9.00
0.00
3f0
$4,703.00
$6,633.00
9.00
0.00
331
$4,812.00
$6,767.00
9.00
0.00
355
$4,812.00
$6,767.00
9.00
0.00
360
$5,386.00
$7,470.00
9.00
0.00
363
$4,933.00
$6,914.00
9.00
0.00
365
$5,386.00
$7,470.00
9.00
0.00
396
$5,884.00
$7,143.00
2.00
0.00 Longevity
417
$5,386.00
$7,470.00
9.00
.0.00
455
$5,790.00
$7,965.00
9.00
0.00
555
$6,207.00
$8,476.00
9.00.
0.00
560
$6,207.00
$8,476.00
9.00
0.00
570
$6,579.00
$8,931.00
9.00
0.00
570
$6,579.00
$8,931.00
9.00
0.00
580
$6,679.00
$8,931.00
9.00
0,00
626
$7,013.00
$9,462.00
9.00
0.00
630
$7,013.00
$9,462.00
9.00
0.00
660
$7,013.00
$9,462.00
9.00
0.00
820
$8,005.00
$10,678.00
9.00
0.00 Longevity
1
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