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PSPP011122PUBLIC SAFETY, PERSONNEL & PLANNING COMMITTEE MEETING January 11, 2022 Elected Officials Participating Virtually Staff Participating Virtually Councilmember Laura Johnson (Chair) Jessica Neill Hoyson, HR Director Councilmember Susan Paine Scott Passey, City Clerk Dave Rohde, GIS Analyst 1. CALL TO ORDER The Edmonds City Council virtual online PSPP Committee meeting was called to order at 5:01 p.m. by Councilmember L. Johnson. 2. COMMITTEE BUSINESS Non -Represented Employees Compensation Study Ms. Hoyson introduced Shannon Drohman and Kathy Marek, Compensation Connections. She advised the packet contains the executive summary and appendices with detailed data. Ms. Drohman reviewed the executive summary: • Project Activities o Conducted base pay market study for 115 represented and non -represented positions o Reviewed and suggested revisions to existing wage scales o Recommended placement of positions into proposed wage schedules • Summary of Methodology o Used existing job descriptions o Utilized existing compensation policy o Strived for as many appropriate matches as could find between the City's jobs and jobs in comparable cities and surveys o Matching includes job duties, position purpose, required qualifications, etc. • Compensation goals o City updated compensation policy in 2021 • Market data sources City County Population Assessed Valuation Per Capita Issaquah King 38,690 11,966,058,762 309,280 Edmonds Snohomish 42,470 11,011,221,440 259,271 Bothell King/Snohomish 48,400 12,354,415,516 255,257 Mukilteo Snohomish 21,360 5,444,416,654 254,888 Shoreline King 56,980 11,637,183,574 304,233 Lynnwood Snohomish 40,690 7,503,860,299 184,415 Puyallup Pierce 42,700 6,928,321,607 162,256 Burien King 52,300 7,794,662,044 149,038 Olympia Thurston 54,150 7,741,414,390 142,962 Lacey Thurston 52,910 7,268,934,236 137,383 o Compensation policy also states that other local government agencies and private employers may be taken into consideration when they are determined to be a relevant factor in the City's labor market. 01/11/22 PSPP Committee Minutes, Page 2 o Pay data was researched using published survey sources. These surveys utilize compensation information provided by hundreds of employers in the public and private sectors. o Utilizing published surveys rounds out the data for City of Edmonds jobs that were not in the comparable city data. The published survey data also reflects the broader labor market in which the Citv competes for talent. Survey source Market Sector Economic Research Institute Government Com Anal st Government Milliman Public Employees Government Compdata Government Milliman Puget Sound Government Milliman Northwest Government • Market Reference Point o When researching pay data in published surveys, 25th, 50th (median), and 751h percentiles were noted. For comparator organization research, pay scales for each position were noted and used to calculated the midpoint, which represents 50th percentile (median). o When comparing the City's pay scales to market, 50th percentile (median) was utilized in alignment with compensation policy and goals. Most public and private sector organizations use 50th percentile as their market reference point. • Findings and Recommendations for Non -Represented Positions o In comparing the current non -represented salary scale to the market data, found current salaries to be approximately 6% below the market median overall. Suggest the City increase non -represented salary scale's dollar amounts to better align with the market. o Also examined placement of each non -represented job within salary scale to determine if any jobs might be a better fit in a different salary range, based on the market data. Found 29 jobs (39 people) move to a higher salary range. o If City implements proposed salary scale and job placement changes for the non - represented employees, 39 people would be eligible for a pay increase. Total increase would be $220,409 or 2% of the City's total salary budget. • Labor Market Context o Seeing a significant number of salary scale and job placement changes with every organization. Puget Sound labor market has historically been challenging for employers, with consistently low unemployment and steady wage growth. o Rate of unemployment for area is fluctuating around 5% and CPI-U growth is over 6% (per the U.S. Bureau of Labor Statistics) which adds to an already difficult climate for employers as they hire and retain staff. Ms. Drohman reviewed additional materials provided in the packet: • Non -Represented Market 501h and Job Matching o Summary of all market data collected at 50th percentile for each non -represented position o Details of survey source, survey job match title and survey 5011 percentile (median) pay data for each NR position. • Non -Represented Salary Scale Adjustment o Compared current NR salary sale to the market data and found to be approximately 6% below market median overall o Comparison of grades by current grade midpoint, market 501h, and variance ■ Overall (average) variance: 6.7% below market • List of increase to range mid -point for non -represented positions by department and job title Ms. Hoyson advised two items related to compensation that are not included and will be addressed separately are, 1) revising the Police Department command structure, and 2) potential adjustment to the WWTP Supervisor wage (following bargaining to ensure the position is aligned with positions below it). 01/11/22 PSPP Committee Minutes, Page 3 Questions and discussion followed regarding appreciation for the data included in report, when comparable cities did their last compensation study, partial implementation of Edmonds' 2018 compensation study in 2019, council policy to do non -represented employees compensation study every 3 years, policies in other cities, ranges used to calculate mid -point, why hiring is so difficult in the Puget Sound area, updating non -represented employees' pay ranges based on council direction, percentages between steps and ranges, current policy related to hiring new employees, structuring ranges so employees have further earning potential, and the number of wage deficiencies in engineering. Ms. Hoyson relayed the data regarding non -represented positions can be discussed in public; the data regarding represented employees must be discussed in a closed bargaining session. For the council to make decisions, both pieces need to be considered. She recommended the non -represented employee data go to full Council followed by a bargaining strategy session to review the represented information and then another meeting in open session to make a decision on the non -represented employees. Action: Presentation to full Council. 3. ADJOURN The meeting was adjourned at 5:50 p.m.