Memo SCC Mtg0
tsTe F o
MINNESOTA
1 1Irel \T,, I►,
TO: Mayor and City Council
FROM: Lori Johnson, City Administrator
DATE: April 24, 2014
SUBJECT: April 28, 2014, Special Meeting
There are several personnel related projects that the Council directed be addressed over the
last year that are currently in various stages of completion. At Monday's meeting, I want to get
additional direction from the Council on a couple of those projects before proceeding. Also, the
Council requested that discussion of the 2014 pay plan adjustment be brought back in April for
consideration along with placement of the Recreation Administrative Assistant into the City's
pay structure. At a recent Administrative Subcommittee meeting changes were requested to
the Uniform Policy; thus, I have drafted a revised Uniform Policy for the Council's consideration.
Finally, if time permits, I would like to briefly discuss the upcoming 2015 budget preparations
and discussion that will begin soon.
Below is a brief summary of the discussion items along with documentation, if available.
Additional documentation will be provided during our discussion on on Monday.
Uniform Allowance:
The City adopted a Uniform Policy in 2008 for Public Works employees. The Policy was updated
in July, 2012, to include the new parks maintenance department. The revision requested at this
time includes reference to the utilities staff, the authorization to purchase City logo caps for
seasonal and part-time employees, and the requirement that only City logo caps may be worn
during working hours. The uniform allowance amounts were not changed.
Seasonal and Part -Time Pav:
The seasonal and part-time pay schedule has been documented in a form for Council approval
as attached. The pay rates listed are consistent with existing pay. The schedule allows for
annual increases based on performance. Further, this pay schedule as proposed would increase
by the same market rate adjustment as the City's pay plan for regular employees. This will
create consistency in pay adjustments that has not existed in the past.
The other item that must be considered with the seasonal and part-time pay rates is the new
minimum wage that takes effect later this year. Attached is an excerpt from a League of
Minnesota Cities publication on the minimum wage. For purposes of the new law, Otsego is
considered a large employer. Thus, the minimum pay rate on the attached proposed schedule
is below the wage required depending upon the age of the employee. We will need to ensure
that the employees are paid at the new minimum wage; hence, not all employees will start at
the minimum listed on the City's schedule.
Position Evaluations:
Minnesota law requires cities to use a job evaluation system to evaluate positions. Otsego uses
the Modified Princeton System. Every time a new position is created, it needs to be evaluated
and placed in the City's pay plan. The Recreation Administrative Assistant position was created
last year, but the evaluation was delayed until additional information about the actual
responsibilities of the position was available. The position has now been evaluated and it is
recommended that it be placed in pay grade five. Step one of pay grade five is $14.89 which is
$.89 above what the employee has been paid since starting over a year ago.
Pay Plan:
During the 2014 budget discussions, the Council delayed making a decision on 2014 pay
requesting that it be brought back for consideration in April. Various pay data were distributed
at that time and supplemental information will be presented on Monday.
General Discussion:
In addition to the specific items listed above, there will be a general discussion of position
evaluations, position descriptions, the pay plan, and the personnel policy. I am looking for
direction and input from the Council before proceeding on with updating and improving the
City's personnel and pay related policies and systems.
Finally, within the next few weeks, staff will begin preparing a draft 2015 budget. The most
important component in preparing the draft budget is incorporating the Council's input.
Therefore, Administrative Services Director Dan Jordet and I would like to discuss Council
expectations, budget work session schedules, and what the Council wants to accomplish in
2015 so that the necessary resources are included in the budget. At Monday's meeting, we will
have a very preliminary 2015 budget discussion with anticipation of a comprehensive discussion
at an upcoming meeting.
2