TITLE
A Resolution of the Mayor and City Council of the City of Maricopa, Arizona adopting a compensation philosophy for the City and authorizing the City manager to hire, promote and compensate employees and to set administrative policies related to performance evaluations and the compensation of city employees. Discussion and Action.
AGENDA ITEM DESCRIPTION
Compensation studies are typically conducted every two to three years to ensure that positions are classified and compensated in accordance with market conditions. The last compensation study for the City of Maricopa was completed in May 2007. In June, 2011 based on the length of time elapsed since the last compensation study and the need to review, consolidate and streamline positions and compensation, the City contracted with Public Sector Personnel Consultants to conduct a compensation study and present a proposed compensation plan.
After completion of the compensation study by Public Sector Personnel Consultants, which included a thorough review of other Arizona cities and private sector salary philosophies and the City's salary structure, a proposal for the City of Maricopa salary structure was developed. The proposed salary structure includes the elimination of job titles not being used, changes in titles to accurately reflect job duties, correct anomalies in salary and bring positions in line with appropriate pay ranges. This streamlines the City's positions, provides greater utilization of personnel resources through job classification revisions, saves the City money over time due to compressed salary ranges, and establishes a framework for creating and adding positions as the City grows.
Positions have been grouped based upon responsibilities, similar functions, and levels of responsibility (i.e., financial and/or personnel responsibility). The compensation study identified some positions that are currently being compensated below the recommended minimum starting salary. In those cases, it is recommended that the existing employee's salary be increased to the minimum salary range effective the payroll period following adoption of this plan. Also, in some cases, existing employees are earning a salary higher than the recommended maximum salary for their position. In those cases, it is recommended that the existing employee's salary remain at their current salary without reduction (also referred to as being "red-lined") and they are not eligible for any future salary increases within their job classification.
The estimated cost to implement this compensation plan is approximately $58,625 including FICA, Retirement and Worker's Compensation costs and it is recommended to be effective immediately. These costs can be absorbed by the departments' existing budgets.
As part of the City of Maricopa's Strategic Plan, the compensation study creates and implements a merit-based compensation philosophy and program, and will be used as a tool for the City to attract, train, evaluate, and retain a high-quality municipal workforce. Based on the compensation study, adoption of the proposed compensation plan will allow needed adjustments to the City of Maricopa's salary structure, job titles, pay, and help ensure internal and external equity.
STAFF RECOMMENDATION
Staff recommends Council adopt the resolution with an immediate effective date.