ITEM 3.5 2018 Pay Equity Compliance ReportOt�oeCF o
MINNESOTA
DEPARTMENT INFORMATION
Request for
City Council Action
ORIGINATING DEPARTMENT
REQUESTOR:
MEETING DATE:
Administration
City Administrator/ Finance Director
Flaherty
January 22, 2018
PRESENTER(s)
REVIEWED BY:
ITEM #:
Consent Item
The Local Government Pay Equity Act (Minnesota Statute §471.991- §471.999) and Minnesota Rules
3.5
AGENDA ITEM DETAILS
RECOMMENDATION:
City staff is recommending that the City Council review and approve submission of the 2018 Pay Equity
Compliance Report.
ARE YOU SEEKING APPROVAL OF A CONTRACT?
ISA PUBLIC HEARING REQUIRED?
No
No
BACKGROUND/J USTI FICATION:
Pay Equity is a method of eliminating discrimination against women who are paid less than men for jobs
requiring comparable levels of expertise.
The Local Government Pay Equity Act (Minnesota Statute §471.991- §471.999) and Minnesota Rules
(Chapter 3920) require local government jurisdictions to submit a pay equity report to the State of
Minnesota every three years.
The City used the State Job Match Job Evaluation System to assign points to each position of the City.
Salary information is then provided for each position of the City. Following the input, an analysis is
generated by the State software system and reports are produced indicating whether the City is in
compliance.
City staff has provided the generated reports to the office of Minnesota Management and Budget (MMB)
and have received comment that the City's report would pass the required compliance tests.
Once approved by the City Council, an implementation report is completed electronically and submitted
through the MMB website using the aforementioned MMB software.
An official notice informing employees that the Pay Equity Implementation Report has been filed and is
available to employees upon request is also required. This official notice will be provided to each individual
employee and will also be posted at City Hall, Prairie Center and both Wastewater Facilities.
SUPPORTING DOCUMENTS ATTACHED:
• MN Management and Budget— Preliminary Review of Pay Equity Report
• Compliance Report
MANAGEMENT
AND BUDGET
January 3, 2018
Adam Flaherty, City Administrator and Finance Director
City of Otsego
13400 — 90th Street Northeast
Otsego, Minnesota, 55330
Re: Preliminary Review of Pay Equity Report
THIS IS NOTA COMPLIANCE NOTICE
We have completed a preliminary review of your jurisdiction's Pay Equity Report, identified as Report
Year 2018, Case ID 1, 2017 Data, "Shared" status and found the report would be in compliance.
The Statistical Analysis Test was used to evaluate your report because the jurisdiction had more than
three male classes and an underpayment ratio of 80 or more. Actual results were 80.36, passing this test
The report passes the Salary Range Test as results were 0 or 80 or more. Actual results were 100.00.
The report would pass the Exceptional Service Pay Test as results were 0 or 80 or more. Actual results
were 0.
Additional information regarding the tests can be found in our Guide to Understanding Pay Equity
Compliance.
Should you have any questions or require assistance, please contact me.
Sincerely,
Cyndee Gmach
Pay Equity Coordinator
400 Centennial Building ® 658 Cedar Street o St. Paul, Minnesota 55155
Voice: (651) 201-8000 ® Fax: (651) 296-8685 e TTY: 1-800-627-3529
An Equal opportunity Employer
Compliance Report
Jurisdiction: Otsego
13400 90th Street N.E.
Report Year: 2018
Case: 1 - 2017 DATA (Shared (Jur and MMB))
Otsego MN 55330
Contact: A. Flaherty Phone: (763) 441-4414 E -Mail: AFlaherty@ci.otsego.mn.us
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
11. STATISTICAL ANALYSIS TEST
A. Underpayment Ratio = 80.36
Male Female
Classes Classes
a. # At or above Predicted Pay 9 5
b. # Below Predicted Pay 5 4
c. TOTAL 14 9
d. % Below Predicted Pay 35.71 44.44
(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) = 31 Value of T = -2.012
a. Avg. diff. in pay from predicted pay for male jobs = $31
b. Avg. diff. in pay from predicted pay for female jobs = $328
111. SALARY RANGE TEST = 100.00 (Result is A divided by B)
A. Avg. # of years to max salary for male jobs = 9.00
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 0.00
B. % of female classes receiving ESP 0.00
*(If 20% or less, test result will be 0.00)
Male Female Balanced
All Job
Classes Classes Classes
Classes
# Job Classes
14 9 0
23
# Employees
24 9 0
33
Avg. Max Monthly
4,642.08 4,571.56
4,622.85
Pay per employee
11. STATISTICAL ANALYSIS TEST
A. Underpayment Ratio = 80.36
Male Female
Classes Classes
a. # At or above Predicted Pay 9 5
b. # Below Predicted Pay 5 4
c. TOTAL 14 9
d. % Below Predicted Pay 35.71 44.44
(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) = 31 Value of T = -2.012
a. Avg. diff. in pay from predicted pay for male jobs = $31
b. Avg. diff. in pay from predicted pay for female jobs = $328
111. SALARY RANGE TEST = 100.00 (Result is A divided by B)
A. Avg. # of years to max salary for male jobs = 9.00
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 0.00
B. % of female classes receiving ESP 0.00
*(If 20% or less, test result will be 0.00)