Packet text, March 12, 2024
Machine-extracted text of the packet PDF, searchable with your browser's find. Page images, tables and scanned FYI pages may be garbled; the PDF is authoritative.
- 3.12.24 Council Packet Agenda packet · 88k chars
- 3.12.24 Council Work Session Packet Agenda packet · 27k chars
Highlighted passages are the agenda items linked from the meeting page.
AGENDA
CITY COUNCIL SPECIAL SESSION
March 12, 2024
5:30 PM
I. Call to Order
II. Agenda
II.A Agenda
Summary Report
3-12-24 Agenda Work Session.doc
III. Business to be discussed and Possible Action
III.A Review of Compensation Study- Robert Bjorkland-Bjorkland Compensation
Consulting
Summary Report
Salary Survey Report.docx 12-23.docx
Salary Survey Proposed Pay Grade Scales 2nd verCity.xlsx 2-24.xlsx
III.B Further discussion of Compensation Study
Summary Report
IV. Adjourn
1
AGENDA ITEM NO. II.A
Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT
DATE: March 12, 2024
SUBMITTED BY: Holli Gudknecht, Administration
ITEM TYPE: Agenda
AGENDA SECTION: Agenda
SUBJECT: Agenda
SUGGESTED ACTION: See attached agenda for Work Session.
ATTACHMENTS:
3-12-24 Agenda Work Session.doc
2
AGENDA
City Council Work Session
March 12, 2024
5:30 pm
Kenyon City Hall
I. Call to Order
II. Review of Compensation Study- Robert Bjorkland-Bjorkland
Compensation Consulting
III. Further discussion of Compensation Study
IV. Adjourn
Mark Vahlsing, City Administrator
Posted: March 7, 2023
3
AGENDA ITEM NO. III.A
Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT
DATE: March 12, 2024
SUBMITTED BY: Holli Gudknecht, Administration
ITEM TYPE: New Business
AGENDA SECTION: Business to be discussed and Possible Action
SUBJECT: Review of Compensation Study- Robert Bjorkland-Bjorkland
Compensation Consulting
SUGGESTED ACTION: Robert Bjorkland will review the salary study and the pay scale
recommendations via Zoom at the Council meeting. The proposed
pay scale tables are attached There are three options shown.
Options 1 and 2 would reflect implementation of the new pay scales
July 1, 2024. Option 3 would be implemented January 1, 2025.
Options 1 and 3 were recommended by the Personnel Committe to
the Council for consideration. If option 3 is selected by the Council
cost of living and longevity should also be applied. Longevity is:
1 – 5 Years Past Salary Step Structure with Satisfactory Performance
Review:
1% Salary Increase or 20 hrs. Vacation.
6 – 10 Years Past Salary Step Structure with Satisfactory
Performance Review:
1.25% Salary Increase or 25 hrs. vacation.
11 – 15 Years Past Salary Step Structure with Satisfactory
Performance Review:
1.5% Salary Increase or 30 hrs. vacation.
16 – 20 Years Past Salary Step Structure with Satisfactory
4
Performance Review:
1.75% Salary Increase or 35 hrs. vacation.
The impact of the increases to the overall budget are:
Option 1 $64,744.51 (7/1/24 implementation)
Option 2 $64,381.74 (7/1/24 implementation)
Option 3 $153, 036.09 (1/1/25 implementation)
I have met with the department heads to review the salary study prior to the
Council meeting. KMU will discuss their part of the salary study separately
at their regular meeting in March. Also attached is the Salary Survey Report.
The executive summary report will be posted on Monday.
ATTACHMENTS:
Salary Survey Report.docx 12-23.docx
Salary Survey Proposed Pay Grade Scales 2nd verCity.xlsx 2-24.xlsx
5
SALARY SURVEY REPORT
CITY OF KENYON, MN
JANUARY 2024
Page 1 Bjorklund Compensation Consulting LLC
6
TABLE OF CONTENTS
PAGE
Summary and Definitions of Terms 3
List of Benchmark Positions 8
List of Participating Organizations 9
General Summary Information 10
Benchmark by Benchmark Comparisons Exhibit I
Trend Line Comparisons Exhibit II
Internal vs. Market Benchmark Regression Analysis Graphs
Analysis of Trend Lines:
Trend Analysis of Market Trend Maximum and Minimums Pay Lines Graph I
Trend Analysis and Comparison of Kenyon vs. Market Pay Lines Graph II
Appendices:
Salary Survey Benchmark Summaries 15
Page 2 Bjorklund Compensation Consulting LLC
7
SUMMARY AND DEFINITIONS OF TERMS
Bjorklund Compensation Consulting LLC (BCC) worked with the City Administrator to identify representative survey participants,
survey sources and benchmark jobs to gather and collect salary information.
BCC developed two customized salary survey questionnaires to collect pay data on benchmark positions for both City and utility related
positions. Brief descriptions outlining the nature of each position were prepared to assist participants in matching their positions to the
City of Kenyon’s benchmark jobs.
BCC reviewed all returned salary data for accuracy and followed-up with participants, when necessary, to clarify survey responses,
reported rates or to resolve questions concerning job matches, when questions arose. Survey responses were summarized by each
position on the basis of participant average pay (mean), medians (50th percentile), participant 25th and 75th percentiles using reported
salary average pay rates, salary range minimums and salary range maximums. Due to the relatively poor survey response, salary data
was supplemented with published data available in BCC’s database, salary survey library, when applicable, and pay data provided by
the City.
All data reported are effective as of September 2023. The data is presented in descending order based on average salary. City of
Kenyon’s pay data is highlighted in each of the benchmark summaries and is the first reported rate. The overall summary statistics do
not include Kenyon’s pay data.
On the following pages are definitions to the terms listed on the summary pages and on the comparison pages.
Page 3 Bjorklund Compensation Consulting LLC
8
SUMMARY AND DEFINITIONS OF TERMS
(Continued)
Summary Pages:
Your Organization Matched Job Title – The title of the participant’s job matched to the benchmark title.
Degree of Job Match (1-5): Each respondent was asked to assess the degree of match to the survey descriptor for each benchmark
position on a scale of 1-5 with 5 being an almost perfect match and 1 having some similar duties but the majority of the job is different.
No. of Employees in Job: Total number of participant employees falling under the benchmark job title.
No. of Steps in Range: Each respondent was asked to supply the number of steps established within the salary range for each of the
benchmark titles matched. Data was to be left blank in the event that the participant established no formal steps.
Average Hourly Salary: The calculated average of all employee salaries reported by the participant for each benchmark position.
Hourly Salary Range: The formal salary range minimum, midpoint and maximum reported for each benchmark position.
Overall Summary Statistics: Salary statistics have been summarized for each benchmark position as follows.
Mean or Average – The simple average (sum of all reported salaries divided by the number of reported cases) of all salary rates reported
for each job. This average was calculated on average reported salary, reported salary range minimums, midpoints and maximums.
Median (50th percentile) – The value where half of the reported average salaries, range minimums, midpoints or maximums fall above
and below the median value.
25th Percentile: The value where 25% of the reported average salaries, range minimums, midpoints or maximums fall below the reported
value.
75th Percentile: The value where 75% of the reported average salaries, range minimums, midpoints or maximums fall below the reported
value.
Page 4 Bjorklund Compensation Consulting LLC
9
SUMMARY AND DEFINITIONS OF TERMS
(Continued)
Comparison Exhibits & Graphs Definitions:
Using a statistical procedure called regression analysis, BCC calculated a “line of best fit” or trend line which predicts an average
market pay rate corresponding to the relative level (i.e. rating) of each benchmark job. This procedure was also performed on
Kenyon’s corresponding benchmark pay rates. By comparing the predicted market median averages (maximum, average and
minimum pay rates) generated by the market data compared to Kenyon’s data, we are able to analyze the competitiveness of your pay
rates in relation to the market median averages, pay maximums and starting rates. This analysis also allows us to generalize the results
to all jobs by comparing predicted market pay rates to internal rates on the basis of the job’s rankings or responsibility level. Exhibit
II shows the predicted values from the regression (i.e. trend analysis) and Graph I and Graph II illustrate graphically the outcomes of
this particular analysis. This analysis also allows use to compare Kenyon’s current pay averages against a snapshot of the market
median average pay rates, average minimums and average maximums. This is particularly useful in the designing new salary
structures that are better aligned with the market.
Exhibit I shows a summary of all benchmark positions and the reported averages for the City of Kenyon vs. the market starting average
median, the average median market salary, and the average median market maximum rates. The exhibit shows a summary difference
between the market and each benchmark job and an overall summary % difference across all benchmarks to arrive at another comparison
statistic of market competitiveness.
Page 5 Bjorklund Compensation Consulting LLC
10
SUMMARY AND DEFINITIONS OF TERMS
(Continued)
Exhibit I Definitions:
City of Kenyon Range Minimum: Represents Kenyon’s salary range minimum for each benchmark job.
Median Market Starting: Represents the median salary of all referenced market salary range minimums from each of the benchmark
summaries (jobs).
City of Kenyon Average Salary: Represents the average of all current Kenyon employee pay rates of employees within the reported
benchmark title.
Median Average Market Salary: Represents the market overall median of all average hourly salary figures referenced from each
benchmark summary page.
City of Kenyon Range Maximum: Represents Kenyon’s salary range maximum salary referenced for each benchmark job.
Median Market Maximum: Represents the overall median of all participants reported maximum salary range rates reported for that
benchmark job.
Percent Difference: The percentage difference between the internal salary and the market salary.
Page 6 Bjorklund Compensation Consulting LLC
11
SUMMARY AND DEFINITIONS OF TERMS
(Continued)
Exhibit II Definitions:
Trend Kenyon Range Minimum: The calculated trend or predicted minimum salary rate that best fits the overall reported salary
range minimums for all Kenyon benchmark jobs and regressing the values against the job evaluation results for each of the
benchmark jobs.
Trend Median Market Starting: The calculated predicted salary (i.e. linear regression trend value) using all the median starting
pay rate overall summary statistics of each benchmark job and regressing the values against the job evaluation results for each
of the benchmark jobs.
Trend Kenyon Average Salary: The calculated predicted average salary (i.e. linear regression trend value) using all the
average salaries reported for each Kenyon benchmark job and regressing the values against the job evaluation results for each
of the benchmark jobs.
Trend Median Average Market Salary: The calculated predicted market median average pay (i.e. linear regression trend value)
using the overall summary median of average reported pay for each benchmark job regressed against the job evaluation results.
Trend Kenyon Range Maximum: The calculated predicted maximum salary (i.e. linear regression trend value) using all
maximum salaries reported for each Kenyon benchmark job and regressing the values against the job evaluation results for
each of the benchmark jobs.
Trend Median Market Maximum: The calculated predicted maximum market salary (i.e. linear regression trend value) using
all the median maximum pay rate summary statistics of each benchmark job and regressing the values against the job
evaluation results for each of the benchmark jobs.
Percent Difference: The percentage difference between the Jackson and market corresponding trend lines.
Page 7 Bjorklund Compensation Consulting LLC
12
LIST OF BENCHMARK POSITIONS
1. City Administrator
2. Public Works Superintendent
3. Chief of Police
4. Operations Superintendent
5. Finance Director
6. Library Director
7. Police Officer
8. Liquor Store Manager
9. Line Worker
10. Public Works Worker
11. Administrative Assistant/Police (Eliminated)
12. Pool Manager (Eliminated-insufficient responses and seasonal)
13. Library Assistant/Youth Services Librarian
14. Administrative Assistant/Deputy Clerk
Page 8 Bjorklund Compensation Consulting LLC
13
LIST OF PARTICIPATING ORGANIZATIONS
Data are provided from 12 organizations that completed and participated in the salary survey out of the 36 identified organizations for
a participation rate of 33%. Given the low participation rate, the survey was also supplemented with published sources available to
BCC and the City of Kenyon. Published sources were aged by a factor of 3% to bring all data to the effective date when applicable.
Organizations Participating: Non-Organizations Participating
City of Mountain Lake City of Janesville
City of Caledonia City of Eyota
City of Windom City of Madelia
City of Jackson City of Moose Lake
City of Blooming Prairie City of Sandstone
City of Tracy City of Lakeland
City of Crystal Lake City of Rushford
City of Kasson Utility City of Granite Falls
City of New Prague Utility City of Blue Earth
City of Redwood Falls City of Ada
City of Princeton Utility City of Aitkin
Sleepy Eye Utility City of Arlington
City of Maple Plain
Published Survey Sources: City of Long Lake
City of Cologne
Occupational Wage Survey – SE/SW MN. Data aged by 3.5%. Bureau of Labor Statistics, 2022. City of Aurora
Salary Survey for Cottonwood County, BCC, LLC., 2023. City of Lester Prairie
Salary Survey for Watonwan County, BCC, LLC., 2023. City of Norwood America
MN Cities with Population 1,000-4,000, LMC, 2023. City of Stacy
Salary Survey for Pennington County, BCC, LLC., 2023. Excel Energy
Steele-Waseca Electric Coop
Goodhue Electric Coop
City of Austin Utility
Lake City Utility
City of Owatonna Utility
City of Lakefield Utility
Page 9 Bjorklund Compensation Consulting LLC
14
GENERAL SUMMARY DATA
1) Average # of Organizational Employees: 61
2) Range of Population Size: 1,000 – 4,000
3) Average Anticipated Pay Increase: 3.9%
Page 10 Bjorklund Compensation Consulting LLC
15
Page 11 Bjorklund Compensation Consulting LLC
16
Page 12 Bjorklund Compensation Consulting LLC
17
CITY OF KENYON
Survey Analysis of Market Pay Lines Graph I
$60.00
$50.00
$40.00
Hourly Rate
$30.00
$20.00
$10.00
$0.00
0 200 400 600 800 1000 1200 1400 1600 1800 2000
Job Evaluation Points
Kenyon Avg. Pay Rate Market Median Average Pay Rate
Market Median Minimum Pay Line Market Median Maximum Pay Line
Page 13 Bjorklund Compensation Consulting LLC
18
City of Kenyon
Comparison of Maximum & Minimum Pay Lines Graph II
$60.00
$50.00
$40.00
$30.00
$20.00
$10.00
$0.00
0 200 400 600 800 1000 1200 1400 1600 1800 2000
Market Median Minimum Pay Line Market Median Maximum Pay Line Kenyon Minimum Pay Line
Kenyon Maximum Pay Line Kenyon Average Pay Rate
Page 14 Bjorklund Compensation Consulting LLC
19
BENCHMARK SUMMARIES
Page 15 Bjorklund Compensation Consulting LLC
20
Page 16 Bjorklund Compensation Consulting LLC
21
Page 17 Bjorklund Compensation Consulting LLC
22
Page 18 Bjorklund Compensation Consulting LLC
23
Page 19 Bjorklund Compensation Consulting LLC
24
Page 20 Bjorklund Compensation Consulting LLC
25
Page 21 Bjorklund Compensation Consulting LLC
26
Page 22 Bjorklund Compensation Consulting LLC
27
Page 23 Bjorklund Compensation Consulting LLC
28
Page 24 Bjorklund Compensation Consulting LLC
29
Page 25 Bjorklund Compensation Consulting LLC
30
Page 26 Bjorklund Compensation Consulting LLC
31
Page 27 Bjorklund Compensation Consulting LLC
32
Page 28 Bjorklund Compensation Consulting LLC
33
AGENDA ITEM NO. III.B
Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT
DATE: March 12, 2024
SUBMITTED BY: Holli Gudknecht, Administration
ITEM TYPE: Miscellaneous
AGENDA SECTION: Business to be discussed and Possible Action
SUBJECT: Further discussion of Compensation Study
SUGGESTED ACTION: Consideration of adoption of Salary Study.
MOTION NEEDED
ATTACHMENTS:
34