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Home My WebLink About5L 2013 Pay Equity Report o� P � O �P ti � v � 4646 Dakota Street SE Prior Lake, MN 55372 '1tI NNESp� P CITY COUNCIL AGENDA REPORT MEETING DATE: January 13, 2014 AGENDA #: 5L PREPARED BY: Kelly Meyer, Asst. City Manager PRESENTED BY: Kelly Meyer AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION APPROVING THE CITY OF PRIOR LAKE 2013 PAY EQUITY REPORT. DISCUSSION: Introduction The purpose of this agenda item is to request Council approval of a resolution approving the City's 2013 pay equity report and directing that it be submitted to the State Office of Management & Budget in compliance with state pay equity reporting statutes. Historv In 1984, the state legislature passed the Local Government Pay Equity Act which requires all public jurisdictions (cities, counties, schools) to eliminate any gender-based wage inequities in compensation. Subsequently, each local government unit is required to submit current pay equity reports once every three years using a state provided software that evaluates the City's classification structure and rates of pay. 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 comparable 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 discovered that a female dominated class is consistently paid less than male-dominated jobs with similar points. Since 2007, the City has used a point system called S.A.F.E. (Systematic Analysis and Factor Evaluation) to classify positions. This classification system provides part of the framework for determining how employees will be paid — meaning where they are placed in the pay system. Other factors impacting compensation include market comparisons, collective bargaining agreements, and economic conditions. Current Circumstances The City of Prior Lake last reported pay equity in 2010 and is therefore required to report by January 31, 2014 using data effective on December 31, 2013. Phone 952.447.9800 / Fax 952.447.4245 / www.cityofpriorlake.com 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 compliance 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 bargaining unit 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 described 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 Citv's ratio is 80.95% which means such underpavment does not exist in this number of cases. Salary Range Test — compares the average number of years it takes for employees to move through salary ranges established for female classes compared to the male classes. The result of this test must either be 0% or 80% or greater. The Citv's test result is 93.0% male and female dominated job classes are movinq at the same pace. 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 Citv's test result is 0 meaninq that fewer than 20% of male classes receive exceptional service pav or that no female classes receive exceptional service paY. 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 equity requirements. ISSUES: 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 positions and salary ranges are established or revised, staff evaluates where such positions should be classified with the intention of ineeting State pay equity requirements. 2 The cost of non-compliance is high. Litigation or labor agreement disputes can result from aggrieved parties. Likewise, actions can be taken by the State Office of Management & Budget in the form of fines and/or additional reporting. It is important to realize that pay equity laws in Minnesota address gender- 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 philosophy, it is only one factor when considering an overall compensation strategy. FINANCIAL Less than $1000 in staff and consultant time to prepare the report. The IMPACT: only other financial impact would be if the City failed to meet the submittal deadline, or was otherwise found out of compliance. The report must be submitted by January 31, 2014 or the City will incur a penalty. ALTERNATIVES: 1. Adopt the Resolution approving the City's pay equity report as part of the consent agenda. 2. Remove this item from the consent agenda for further discussion. RECOMMENDED Alternative 1. MOTION: 3 o� P � O �P N � 4646 Dakota Street SE '�I1vn�so'��' Prior Lake, MN 55372 RESOLUTION 14-xxx A RESOLUTION APPROVING THE CITY OF PRIOR LAKE 2013 PAY EQUITY IMPLEMENTATION COMPLIANCE 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, 2014; 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 HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as follows: 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 and Budget. PASSED AND ADOPTED THIS 13� DAY OF JANUARY 2014. YES NO Hedber Hedber Keene Keene McGuire McGuire Morton Morton Souku Souku Frank Boyles, City Manager Compliance Report Jurisdiction: Prior Lake Report Year: 2014 4646 Dakota Street SE Case: 1- 2013 Data (Private (Jur Only)) Prior Lake MN 55372 Contact: Kelly Meyer Phone: (952) 447-9800 E-Mail: kmeyer@cityofpriorlake.com The statistical analysis, salary range and exceptional service pay test results are shown below. Part I 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. I. GENERAL JOB CLASS INFORMATION Male Female Balanced All Job Classes Classes Classes Classes # Job Classes 27 17 1 45 # Employees 64 23 2 89 Avg. Max Monthly 6,565.96 5,844.43 6,321.19 Pay per employee II. STATISTICAL ANALYSIS TEST A. Underpayment Ratio = 80.95 * Male Female Classes Classes a. # At or above Predicted Pay 18 10 b. # Below Predicted Pay 9 � c. TOTAL 27 � � d. % Below Predicted Pay 33.33 41.18 (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 (DF) = 85 Value of T= 0.860 a. Avg. diff. in pay from predicted pay for male jobs = $� 2 b. Avg. diff. in pay from predicted pay for female jobs = ($30) III. SALARY RANGE TEST = 93.00 (Result is A divided by B) A. Avg. # of years to max salary for male jobs = 8 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 classes receiving ESP 14.81 • B. % of female classes receiving ESP 0.00 *(If 20% or less, test result will be 0.00) Prior Lake Job Class Data Entry Verification List LGID 959 Case: 2013 Data Job Class Nbr Nbr Class Jobs Min Mo Max Mo Yrs to Max Yrs of Exceptional Nbr Title Males Females Tvpe Points Salary Salary Salary Service Service Pay 42 Secretary - Maintenance 0 1 F 120 $3,243.08 $3,971.08 9.00 0.00 44 Community Service Officer 1 1 B 120 $3,243.08 $3,971.08 9.00 0.00 43 Secretary/Receptionist - A� 0 1 F 125 $3,243.08 $4,731.08 9.00 0.00 45 Police Records Clerk - Ost 0 4 F 125 $3,243.08 $3,971.08 9.00 0.00 41 Utility Billing Clerk - Olson 0 2 F 140 $3,411.17 $4,939.08 9.00 0.00 39 Development Services As� 0 3 F 160 $3,411.17 $4,939.08 9.00 0.00 40 Recreation Program Assisl 0 1 F 160 $3,411.17 $4,939.08 9.00 0.00 37 Maintenance Worker 17 0 M 175 $3,681.58 $5,273.58 9.00 0.00 38 Facilities Maintenance Woi 1 0 M 175 $3,681.58 $4,513.58 9.00 0.00 34 Streets & Utilitiies Mainterr 1 0 M 185 $3,806.42 $5,420.92 9.00 0.00 35 Mechanic 2 0 M 185 $3,806.42 $5,420.92 9.00 0.00 36 Accounting Specialist 0 1 F 195 $3,902.08 $5,421.67 9.00 0.00 32 Public Work Technician 1 0 M 220 $4,175.58 $5,873.33 9.00 0.00 33 Public Works Assistant 0 1 F 220 $4,175.58 $5,873.33 9.00 0.00 31 Police Records Manager 0 1 F 225 $4,174.25 $5,870.92 9.00 0.00 30 Recreation Programmer 0 1 F 230 $4,553.50 $5,574.42 9.00 0.00 29 Engineering Tech 3 1 0 M 240 $4,553.50 $6,334.42 9.00 0.00 28 Building Inspector 1 0 M 271 $4,893.17 $6,750.42 9.00 0.00 19 PatrolOfficer 13 2 M 280 $4,096.00 $6,464.00 4.00 0.00 Longevity 20 Accountant 0 1 F 285 $4,892.42 $6,751.08 9.00 0.00 21 Administrative Assistant 0 1 F 285 $4,992.42 $6,851.08 9.00 0.00 26 Engineering Tech 4 1 0 M 285 $4,893.17 $6,750.42 9.00 0.00 27 Code Enforcement Officer 1 0 M 293 $4,893.17 $6,750.42 9.00 0.00 22 Communications Coordina 1 0 M 305 $4,992.42 $6,851.08 9.00 0.00 23 Maintenance Foreman 3 0 M 308 $4,892.42 $6,751.08 9.00 0.00 24 Planner 1 0 M 310 $4,893.17 $6,750.42 9.00 0.00 25 Economic Development SF 1 0 M 310 $4,893.17 $6,750.42 9.00 0.00 18 Police Detective 2 0 M 320 $4,300.83 $6,749.17 4.00 0.00 Longevity 16 Recreation Coordinator 0 1 F 330 $5,431.42 $7,343.42 9.00 0.00 17 Accounting Manager 0 1 F 355 $5,431.42 $7,343.42 9.00 0.00 15 Water Resources Engineei 1 0 M 363 $5,131.42 $7,043.42 9.00 0.00 14 Information Systems Coorc 1 0 M 375 $5,131.42 $7,043.42 9.00 0.00 12 Police Sergeants 4 0 M 398 $6,275.00 $7,444.00 2.00 0.00 Longevity 11 Building Official 1 0 M 417 $6,043.25 $8,092.67 9.00 0.00 13 Project Engineer 1 0 M 440 $5,439.25 $7,420.42 9.00 0.00 10 Maintenance Superintende 1 0 M 500 $6,174.33 $8,320.58 9.00 0.00 8 Assistant City Manager 0 1 F 555 $6,887.25 $9,126.17 9.00 0.00 9 Police Lieutenant 1 0 M 560 $6,919.58 $9,165.67 9.00 0.00 7 Community & Economic D� 1 0 M 570 $6,981.58 $9,309.08 9.00 0.00 5 City Engineer/ Director of I 1 0 M 580 $7,281.58 $9,609.08 9.00 0.00 6 Fire Chief 1 0 M 580 $6,981.58 $9,309.08 9.00 0.00 4 Finance Director 0 1 F 625 $7,741.83 $10,172.67 9.00 0.00 3 Public Works/Natural Resc 0 1 F 640 $7,441.83 $9,872.67 9.00 0.00 2 Police Chief 1 0 M 660 $7,791.83 $10,222.67 9.00 0.00 1 City Manager 1 0 M 820 $8,329.67 $10,959.75 9.00 0.00 Performance Job Number Count: 45 1