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City Council Minutes January 22, 2019 Page 14 Ms. Wipper stated their evaluation of the positions in 2018 gave them a good understanding of how to apply the five factors of the RDK Job Evaluation System to remain consistent among the positions. They also met with department managers and directors to consider inconsistencies. The positions in pay grade 2E were rated the same except for the work environment. The Fire Chief, Police Chief, and Public Works Director were rated higher in work environment. Councilmember Westgaard said there was really no comparison between the Police Chief and the Parks and Recreation Director in their work environment risk. Mr. Portner explained the system they purchased from an outside company sets defined criteria for determining pay grades. This system is utilized to maintain compliance and ensure pay is not gender biased. Pay grades are determined on contribution to the mission, not on whether they are in a position where there are bullets or flames. Corruption of the compensation plan tends to happen as you add, decrease, or combine positions. The goal is to remove as much bias as possible. All six positions in the 2E category have the same educational, experience, and degree requirements, level of responsibility and accountability, and expectations to develop and maintain policies. The amount that is paid also acts as a recruitment tool. Councilmember Ovall added that, at his job at The Bank of Elk River, the members of the executive team are not all paid the same because it's based on market demand. He asked what role market analysis is taken into account. Are we paying market compared to our peers? Ms. Wipper explained that, as part of the pay grade restructuring, the city performed a benchmark study. Twelve cities that look like us were used as comparisons. Within these cities the average wage of comparable positions was determined. If we were recruiting from a city such as Minneapolis, we may not be comparable on pay, but, if the city were recruiting from Lino Lakes we would, because they are a comparable city. She also explained the city set the starting pay higher to avoid bringing new employees in at a Step B or C pay step. However, there is only so much the city can do to compete with the private market because the private companies do not need to comply with pay equity, follow a pay plan, or report to the Office of Budget and Management at the State. Councilmember Westgaard asked if the amount between each pay step was the same. Ms. Wipper responded it was the same amount between each step in each pay band. Councilmember Westgaard asked if steps increase every year for some positions and every three years for others. Ms. Wipper explained that steps increased every year based on satisfactory performance. IIIEREI 11 NATURIE