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HomeMy WebLinkAboutOrd2008-019Sponsored by: Oates Introduction: October 27, 2008 Public Hearing: November 24, 2008 Enacted: November 24, 2008 CITY OF SEWARD, ALASKA ORDINANCE 2008-019 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AhIENDING TITLE 3, CHAPTER l5, SALARY ADMINISTRATION, ALLOWING THE CITY MANAGER TO REVIEW AND ADJUST SALARIES FOR EXTERNAL EQUITY WHEREAS, Title 3, Chapter 15 of the Personnel section of the Seward City Code, provides salary administration; and WHEREAS, the City Manager is required to administer the pay plan and keep it current through periodic reviews and comparative studies of pertinent factors affecting levels ofpay; and WHEREAS, the City of Seward is finding an increasing challenge with recruiting for specialized, skilled positions and also in retaining these employees in increasingly competitive job markets; and WHEREAS, the City of Seward has a solid foundation in regards to internal equity, rate of pay for employees within the City of Seward, in that all job descriptions were reviewed and revised, and were scored against a uniform scoring system to ensure equal pay for equal work, based solely on internal equity; and WHEREAS, the City Manager needs the authority to compensate specialized skilled individuals regardless of an adopted classification plan, adopted pay plan, or pay scale to ensure that positions are paid comparable to positions in other similar-sized government entities and/or similar private businesses; and WHERF,AS, the City would be better able to attract, retain and recruit for specialized, skilled positions that are more competitive in the external market. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL, OF THE CITY OF SEWARD, ALASKA, that: The Seward City Code Title 3, Chapter 15 is hereby amended to read as follows: (striR out =deletions; bold italics =additions) Section 1. Seward City Code 3.15.025, Administration of the pay plan, is amended by adding the following section (c): (c) To ensure that the City's pay scale is aligned with external market conditions, in ;~,,, order to attract, recruit and retain qualified employees, the city manager has the authority to adjust tlae pay for a specific position by up to 20%, to account for external equity. Any increases in pay associated with external equity will be justified by the city manager based on a review of external equity factors, and may be instituted without the CITY OF SF,WARD, ALASKA ORDINANCE 2008-019 ~~eed to a»:end the pay plan or classification system. Section 2. This ordinance shall take effect 10 days following enactment. ENACTED BY CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, this 24th day of November, 2008. THE CITY OF SEWARD, ALASKA Clark orbndge, Mayor AYES: Smith, Dunham, NOES: Kellar, Keil ABSENT: None ABSTAIN: Nonc ATTEST: Valdatta, Bardarson, Corbridge j ~, ~_ Jea Lewis, CM Ci Clerk M ai-1 a ~(, ~i~e: ~~~' SI (City Seal) ~ ~~ .o' ~ -'~ ~.~ ~' r w : '" +* JF -' .., ,. ... o f ',j y • ~ ~,Iy ~ .gin, • ~ ''*Ar~ OF A~P.e' Council Agenda Statement Meeting Date: October 27, 2008 To: Honorable Mayor and Council From: Phillip Oates, City Manager Agenda Item: Amend Title 3, Personnel authorizing the city ma~lager to make pay adjustments due to external equity factors BACKGROUND & JUSTIFICATION: Seward City Code, Section 03.15.025, addresses the administration of the City of Seward pay plan. The City Manager is required to administer the pay plan and keep it current through periodic reviews and comparative studies of pertinent factors affecting levels of pay. In 2001, the City hired Bill Woods & Associates to review the City's pay plan to ensure internal equity (that is, to ensure that positions within the City were fairly compensated relative to one another). Woods' study focused entirely on internal equity, assuming employees were hired at the entry level. To that end, _job descriptions were reviewed and revised, and were scored against a uniform scoring system to ensure equal pay for equal work, based solely on internal equity. Since it was clear that it would not be financially feasible to modify the entire pay plan at that time to ensure both internal equity and exlernnl equity (that is, to ensure that positions were paid comparable to other similar-sized government entities and/or like private businesses), the external equity element of the pay plan was not reviewed at that time. This sole focus on internal equity, without examination of external equity or external market factors, has made it increasingly difficult for the City to recruit and retain specific positions when competing within increasingly competitive job markets. In order to attract and/or retain specialized, skilled employees, the City also requires external market factors to be taken into consideration in the hiring and compensation process. Although the 2001 study ensures internal equity, the gap in external equity means we have been unable to till positions such as the engineer position and the electric technician, and we may be hard pressed to compete with other entities, to attract and retain qualified employees. There is a significant loss to the City when losing a specialized, skilled employee to a higher paying employer. By authorizing the city manager to adjust the pay for a specific position by up to 20% to account for external market factors, without the need to revise the pay plan or classification plan, the City would be better able to attract, retain and recruit for specialized, skilled positions that are more competitive in the external market. INTENT: The intent of this Ordinance is to provide the city manager with some level of administrative discretion to adjust salaries to fill positions which have either proven difficult to fill, or to be more competitive to attract, recruit, and/or retain qualified applicants for key City positions. .:3 c~ CONSISTENCY CHF,CKLIST: Where applicable, this ordinance is consistent with the Seward City Code, Charter, Comprehensive Plans, band Usc Plans, Strategic Plan and City Council Rules of Procedures. Other: FISCAL NOTE: This Ordinance is expected to result in some added personnel costs to the City. However, the additional cost will he offset, in part, by the reduction in costs associated with recruiting and retraining employees due to turnover, an increase in efficiency resulting from consistent statiing levels and less turnover, and less overtime paid as a result of key position vacancies. Approved by Finance Department: ~'"~~~~~ ~~~~~'~~~ RECOMMENDATION: Council enact Ordinance 2008-019, adding section (c) to the Seward City Code Title 3, Personnel, Section 3.15.025. ., J