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
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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
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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)