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AWARD BID - COMPENSATION <br />STUDY <br />Hundley stated that one of Council's goals was to <br />improve employee morale in the City. In 1985, <br />$10,000 was allocated by the City Council to <br />conduct an employee compensation study. Due to <br />the City's financial situation at that time, <br />Hundley felt it was ill advised to conduct the <br />study at that time as there wasn't money available <br />for compensation. <br />Asti-Caranci described the bids requested for this <br />study. Staff's objective of this salary and wage <br />system is to pay City employees equitably, based <br />on the relative internal value of each job and the <br />market value established by the competition. The <br />system- will be designed to attract, retain and <br />motivate qualified City personnel. An effective <br />salary administration system requires clear job <br />definitions, effective performance appraisal <br />techniques, and a system which sets salaries based <br />on performance. Funding is requested to be <br />allocated from the Council's Contingency Fund. <br />Asti-Caranci pointed out that the 1985 General- <br />Fund carryover balance is approximately $60,000. <br />This balance was not included in the 1986 budget <br />as carryover. <br />Staff recommendation is to award the bid to A.S. <br />Hansen, Inc. for the Salary Compensation Study. <br />The City's pay system has not been updated since <br />1983 and job descriptions have not been updated <br />since 1981. <br />Anderson asked if job descriptions would be <br />developed for positions that may occur at a later <br />date. Asti-Caranci stated that the City currently <br />has 41 job descriptions and the consultants will <br />train staff as to how to write job descriptions <br />based on questionnaires and also how to update all <br />job descriptions as needed. <br />The consultants will also redesign the City's <br />performance appraisal program and train <br />supervisors how to evaluate an employee based on <br />the level of responsibility within their job <br />description tying that to their performance. <br />Two types of pay will be investigated. The first <br />type is a base pay with a salary increase each <br />year. The second is a performance pay - bonus pay <br />which does not accumulate. The consultants will <br />be working directly with employees in their <br />evaluation and study program. <br />Asti-Caranci stated that staff felt the amount of <br />6 <br />