Memo  

TO:                              Mike Wildgen

C:                                 Debbie Van Saun

                                    Dave Corliss

FROM:                        Frank Reeb

Lori Carnahan

DATE:                         June 19, 2003

RE:                               Compensation Study Final Report

Attached is the Compensation Study Final Report from FBD Consulting.  FBD has been working with an employee committee for the past six months to review and make recommendations regarding the City’s Employee Compensation Program. 

Last Fall, Administrative Services developed an Employee Compensation Committee to review the City’s compensation program and work with FBD in developing comprehensive compensation objectives, which included establishing a primary and secondary market, reviewing our existing internal job evaluation system and reviewing market data obtained by FBD with respect to the compensation objectives developed.  The twenty-three member committee included employees from all levels of the organization and from as many departments as possible.  Each member of the team devoted a great deal of time and effort to completing this project.  A complete list of the participants is included in the Final Report.

Along with a list of goals for the project, the committee broke the project into the following five phases:

1. Review and revision of pay philosophies;

2. Complete Market Study;

3. All parties use data obtained for MOU discussions between IAFF, LPOA and the City;

4. Develop a comprehensive compensation policy (or policies) including base pay, shift differential, skill incentives, on-call pay, call back pay, other add pays, longevity pay and any other pay items brought forth by compensation consultants;

5. Implement program on approved timeline.

With the completion of this Final Report, we have completed phases one and two and have provided data for phase three.  Currently, both the IAFF and LPOA are working with City management to complete phase three.  Language contained in the ratified Memorandum of Understanding with the IAFF provides that members of the negotiating teams will serve on a task force, which will continue for the remainder of 2003 in order to develop a compensation program for employees covered by the MOU.  Given that compensation related work remains for both the IAFF and LPOA MOUs, the recommendations in the Final Report regarding the Fire/Medical and Police Departments will be considered in the development of the compensation plans ultimately recommended by those departments.  The Administrative Services Department along with City Administration will need to develop a time line to complete phases four and five.

While it is clear from the Final Report that we have done a lot of work, there is also still much work to be done.  Page 6 of the Final Report outlines the ongoing projects that still need to be addressed.  In summary, those projects include:

• Development of a City-wide Compensation Policy and accompanying procedures using the compensation objectives as a guideline;
• Continued collaboration needs to take place to complete pay programs for both public safety departments; and
• A review of the recommendations accompanied by an implementation program needs to be developed to address recommendations outlined by FBD in the Final Report.

The Employee Compensation Committee will continue to meet quarterly to provide input and monitor the progress of remaining steps of this project.  The Administrative Services Department will continue to work with FBD to complete the remaining segments of this project.  If you have questions regarding FBD’s report or the City’s compensation program, please contact Frank Reeb or Lori Carnahan.