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
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Jea Lewis, CM
Ci Clerk
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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.
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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.
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