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4. Resolution 5529 - Salary Classification PlanCity of Kalispell 201 1st Ave E. P.O. Box 1997 Kalispell, Montana 59903-1997 (406) 758-7000 Fax (406)758-7757 REPORT TO: Honorable Mayor and City Council FROM: Terry Mitton, Director of Human Resources Jane Howington, City Manager SUBJECT: Adopting Position Classification and Salary Matrix for Non -Union MEETING DATE: October 3, 2011 Problem Statement: Over the past several years the city has struggled financially, due in part, to the economic downturn. One of the methods of cutting expenses during this time was to freeze compensation for non -union personnel. While this helped in the short term, it also created a difficult compression problem between union and non -union positions. The second major personnel issue facing the city is an imbalance of internal equity and the misplacement of positions within the current classification system. This has resulted over a period of years as positions have been individually re-classified or the evaluation tool used to create a position's classification ranking was limited in its sensitivity to some major ranking factors. Background: The first salary classification plan was conducted in 1991 using a consultant that reviewed or revised all job descriptions and built the matrix off a point -factoring system. In 2003/2004 the city again hired a consultant to review all position descriptions and revise the matrix system based on both internal and external equity. To maintain the effectiveness of this matrix it was meant to be adjusted annually or with every COLA given to non -union personnel. Over the years it appears that two things impacted how the current classification matrix became imbalanced. In approving the annual salary schedule it appears the city council adjusted the upper end of the matrix, but not the lower end. The result of this increased the minimum to maximum spread in each grade and created a large overlap. As time goes on this makes it very difficult to move in any successive order through the matrix and provides problems with positions being placed in the wrong grades. The second problem impacting the effectiveness of the current classification matrix has been the individual alterations to various positions within the matrix without regard to maintaining like positions in the same grade. While this practice has been stopped, the long term impact has created major difficulties in continuing to use the current structure. The last time the current classification matrix was adjusted occurred in 2008 when the non -union employees received a 4% COLA. Since then, non -union positions have been frozen while union 1 positions have continued to receive negotiated increases. Over time this has created some difficult compression issues including situations where some union employees are earning a higher wage than their supervisors. Without addressing the morale issue this causes, it also creates a problem with succession planning and moving employees up through the career ranks internally. An example of this can be seen in the police department. Since 2008, non -union employees have not had a COLA. During that same time police union personnel received 4% in 2009 and 4% in 2010. The result of this enabled the sergeants (union) to make a higher wage than the lieutenants (non -union) providing a disincentive for officers to seek job advancement and in some cases providing an incentive for our upper management employees to move back into union ranks. Proposal: The classification matrix and salary schedule should be revised to consolidate grades, place like positions into the same grade, narrow the salary ranges in each grade, and implement a method to eliminate compression situations between union and non -union positions. The current classification matrix should be consolidated from the current 19 grades to 6 grades. The city manager position should be eliminated from the matrix as it is a contractual position. The attached classification matrix shows the proposed consolidation and combines like positions into the same grade using similar terminology. Several positions have been under -classified and this proposal would move them into the appropriate grades. The cost to accomplish this part is approximately $19,100. Unless the classification matrix and salary schedule move in unison with the union salary adjustments, the compression issue will not be resolved. Annual adjustment to the non -union classification matrix to reflect the increases in the collective bargaining contractual agreements would accomplish this goal. For the current fiscal year (2011/12) union step increases are 1.3%. The cost to adjust the non -union classification matrix which will accomplish this is approximately $36,600. Recommendation: The City Council should approve the resolution adopting the revised classification matrix. Terry tton Dire r of Human Resources ,Jane Howington City Manager 2 i ,, ,R i i► i i ,: R i i, i •/' i' iR a ., i', a i i i I i i R , U1 fR Wl'%'Mkj a V § R WHEREAS, on September 17, 2007, by Ordinance No. 1623, the Kalispell City Council determined that the salaries and compensation ranges of city elected officials and all other employees of the City shall be set from time to time by the resolution of the Kalispell City Council; and WHEREAS, the salary matrix system currently utilized by the City for its nonunion employees was first established in 1991 and then studied and adjusted in 2004 and it has not been adjusted since that date; and WHEREAS, it is essential to regularly adjust the salary matrix system in order to remain consistent in pay equity within city departments, between city departments and between union and nonunion employees of the City; and WHEREAS, in the same period of time that the nonunion employees of the City have had their wages frozen, union employees of the City have received a margin of increased wages and benefits through the approved collective bargaining agreements which has further exacerbated the wage disparity; and WHEREAS, the City Council finds that the 2011/2012 Salary Classification Matrix attached hereto and incorporated fully herein by this reference will serve to correct the existing deficiency in the matrix system. Further, a wage increase of 1.3%, equivalent to the wage increase approved in the most recently adopted collective bargaining agreement, should be provided for nonunion City employees, who are not elected or under contract, as this will maintain that equity through the following fiscal year. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF KALISPELL AS FOLLOWS: SECTION I. The 2011/2012 Salary Classification Matrix is hereby approved and adopted for the nonunion employees of the City of Kalispell with the effective date of July 1, 2011. SECTION II. The City Manager is authorized to adjust the wages and salaries of those nonunion employees of the City of Kalispell as is necessary to comply with the adjusted matrix. SECTION 111. The salaries and compensation of nonunion City employees for the period beginning July 1, 2011, who are not elected or under contract, shall be increased by 1.3%. PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE CITY OF KALISPELL, THIS 3RD DAY OF OCTOBER, 2011. Tammi Fisher Mayor Theresa White City Clerk 10/3/2011 Grade I Salary Ranaa Ravicarl inh Titlac GIS Specialist $38,500 S511800 GIS Specialist Legal Secretary Legal Secretary Administrative Specialist Office Coordinator (Police, Court, PW, Planning, Parks) Grade 2 Revolving Loan Fund Manager $45,500 $61,200 Manager (Revolving Loan, CD) Community Development Manager Community Development Manager Chemist 2 Chemist 2 Assessment Coordinator Assessment Coordinator Planner 2 Planner 2 Asst Civil Engineer Asst Civil Engineer Payroll & HR Technician Payroll & HR Technician Grade 3 Senior Civil Engineer $50,600 $68,300 Senior Civil Engineer Parks & Recreation Superintendent Superintendent - Parks, Const, PW - (WWTP, Budget Resources, Sr. Project) Building Official Building Official Senior Planner Senior Planner Grade 4 Airport Manager $56,500 $76,300 Airport Manager Assistant City Attorney Assistant City Attorney WWTP Water Resource Manager WWTP Water Resource Manager Police Lieutenant - Detectives Police Lieutenant - (Detectives, Patrol) Treasurer Treasurer Grade 5 Assistant Chief (Police, Fire) $58,500 000 $82,Adjutant Assistant Chief (Police, Fire) City Engineer City Engineer Adjutant Attorney Attorney Assistant Finance Director Assistant Finance Director Grade 6 Directors $65,400 $102,500 Directors (PW, HR, Parks, Finance, Planning, IT) City Clerk City Clerk City Attorney City Attorney Chief (Fire & Police) Chief (Fire & Police)