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HomeMy WebLinkAbout5D 2019 Pay Equity Agenda ReportPhone 952.447.9800 / Fax 952.447.4245 / www.cityofpriorlake.com 4646 Dakota Street SE Prior Lake, MN 55372 CITY COUNCIL AGENDA REPORT MEETING DATE: JANUARY 6, 2020 AGENDA #: PREPARED BY: 5D LORI OLSON, ASSISTANT CITY MANAGER PRESENTED BY: LORI OLSON AGENDA ITEM: APPROVE A RESOLUTION ADOPTING THE CITY OF PRIOR LAKE 2019 PAY EQUITY REPORT DISCUSSION: Introduction The purpose of this agenda item is to request Council approval of a resolution approving the City’s 2019 pay equity report to in order to be in compliance with state pay equity reporting statutes. History In 1984, the state legislature passed the Local Government Pay Equity Act, which requires all public jurisdictions to eliminate any sex-based wage inequities in compensation. 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 job classes, male/female employees, and related 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. Current Circumstances The City of Prior Lake last reported pay equity in 2017 for the fiscal year 2016, so the City is required to report in 2020 using data effective on December 31, 2019. The pay equity report contains the results of compliance tests that the State Office of Management & Budget (MMB) uses to determine if a municipality is in compliance with pay equity requirements. The City formally submits its report upon approval by the City Council. Conclusion Based on the initial submission of the report, the City appears to be in compliance with the State’s pay equity requirements. The City will receive the official notification letter and confirmation of compliance from the State after the State reviews and approves the City’s submission. ISSUES: The most recent review of the City’s classification and compensation analysis was conducted in 2017. FINANCIAL IMPACT: The City contracted with Saado Abboud, Principal of the Keystone Compensation Group for an amount less than of $1,850 to prepare the initial pay equity analysis and file the report with the State on behalf of the City. Mr. Abboud conducted the City’s 2016 pay equity analysis as well as the City’s compensation study in 2017. 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 MOTION: Alternative 1. 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 20-001 A RESOLUTION APPROVING THE CITY OF PRIOR LAKE 2019 PAY EQUITY 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) by January 31, 2020, for the 2019 fiscal year; and WHEREAS, The necessary analysis and reports have been completed, and the City appears to be in compliance with state pay equity requirements; and WHEREAS, The Mayor and City Council have reviewed and approved the report and authorize formal submission of the report by staff to MMB. 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 City of Prior Lake’s 2019 Pay Equity Report. VOTE Briggs Thompson Burkart Braid Erickson Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ ______________________________ Lori Olson, Assistant City Manager