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1j. Approve Pay Equity Report1� CITY OF CHANHASSEN 7700 Market Boulevard PC Box 147 Chanhassen, MN 55317 Administration Phone: 952.227.1100 Fax: 952.227.1110 Building Inspections Phone: 952.227.1180 Fax: 952.227.1190 Engineering Phone: 952.227.1160 Fax: 952.227.1170 Finance Phone: 952.227.1140 Fax: 952.227.1110 Park & Recreation Phone: 952.227.1120 Fax: 952.227.1110 Recreation Center 2310 Coulter Boulevard Phone: 952.227.1400 Fax: 952.227.1404 Planning & Natural Resources Phone: 952.227.1130 Fax: 952.227.1110 Public Works 1591 Park Road Phone: 952.227.1300 Fax: 952.227.1310 Senior Center Phone: 952.227.1125 Fax: 952.227.1110 Web Site www.ci.chanhassen.mn.us MEMORANDUM TO: Todd Gerhardt, City Manager FROM: Laurie Hokkanen Assistant City ana erJ& Y g DATE: June 18, 2010 G . RE: 2010 Pay Equity Report PROPOSED MOTION The Chanhassen City Council approves the attached 2010 Pay Equity Implementation Report and directs staff to submit the report to the Department of Employee Relations. BACKGROUND In 1984, the Minnesota Legislature passed the Local Government Pay Equity Act. Basically, the intent of the law is to ensure that men and women performing similar jobs are compensated in an equal manner. Local governments were given until December 31, 1991 to comply with the law and were required to file reports with the Department of Employee Relations (DOER) by January 31, 1992. All jurisdictions were then placed on a three -year reporting cycle for future reports. The report, attached, is a computer generated report based on inputs supplied by the City of Chanhassen. The report is fairly confusing, but the figure which denotes compliance is the underpayment ratio under Roman numeral II on the Compliance Report. According to DOER, jurisdictions must maintain a ratio of 80% or higher to comply with the statute. The City of Chanhassen is at 99%. Staff believes we are in compliance with the Act. RECOMMENDATION Staff recommends that the Chanhassen City Council approve the attached 2010 Pay Equity Implementation Report and direct staff to submit the report to the Department of Employee Relations. Approval of this item requires a majority vote of the city council. G:Wdmin\LH\PersonneMay Equity staff report 2010.doc Chanhassen is a Community for Life - Providing for Today and Planning for Tomorrow Pay Equity Implementation Report Send completed report to: Pay Equity Coordinator Department of Employee Relations 200 Centennial Building 658 Cedar Street (651) 259 -3761 (Voice) St. Paul, MN 55155 -1603 (651) 282 -2699 (TDD) Department Use F - Postmark Date of Report 56 7 Jurisdiction ID Number Part A: Jurisdiction Identification Jurisdiction: Clty of Chanhassen PO Box 147 7700 Market Blvd Chanhassen, MN 55317 Contact: Assistant City Manager Laurie Hokkanen Fax: 9522271918 Email: Jurisdiction Type: CITY Phone: (952) 227 -1118 Part B: Official Verification 0 The job evaluation system used measured skill, effort responsibility and working conditions and the same system was used for all classes of employees. The system used was: lConsultant System (Specify: _ J Describe: Doomily Smythe and Co. 0 Health Insurance benefits for male and female classes of comparable value have been evaluated and: There is no difference fir' and emale classes are not at a disadvantage. ® [Information in this report is complete and accurate. 0 []'The report includes all classes of employees over which the jurisdiction has final budgetary approval authority. Part C: Total Payroll $5,002,637.66 is the annual payroll for the calendar year just ended December 31. f0 No salary ranges /performance differences. ❑ Leave blank unless BOTH of the following apply: a. Jurisdiction does not have a salary range for any job class. b. Upon request, jurisdiction will supply documentation showing that inequities between male and female classes are due to performance differences. Note: Do not include any documentation regarding performance with this form. 0 An official notice has been posted at: 7700 Market Blvd. City Hall, Admin Copy Room (prominent location) informing employees that the Pay Equity Implementation Report has been filed and is available to employees upon request. A copy of the notice has been sent to each exclusive representative, if any, and also to the public library. The report was approved by: City of Chanhassen (governing body) Tom Furlong (chief elected official) Mayor (title) ❑✓ Checking this box indicates legal signature by above official. Date Submitted 1 06/14/2010 Compliance Report Jurisdiction: City of Chanhassen PO Box 147 Contact: Laurie Hokkanen Assistant City Manager 06/18/201 C Phone: (952) 227 -1118 The statistical analysis, salary range and exceptional service pay test results are shown below. Part I is general information from your pay equity Report data. Parts II, III and IV give you the test results. For more detail on each test, refer to the guidebook. I. GENERAL JOB CLASS INFORMATION B. T -TEST RESULTS Degrees of Freedom (DF) = 93 Value of T = - 4.793 a. Avg. diff. in pay from predicted pay for male jobs = $ b. Avg. diff. in pay from predicted pay for female jobs = $ 931 III. SALARY RANGE TEST = 0.00 % (Result is A divided by B) A. Avg. # of years to max salary for male jobs = 0.00 B. Avg. # of years to max salary for female jobs = 0.00 IV. EXCEPTIONAL SERVICE PAY TEST 100.00 A. % of male classes receiving ESP 100.00 B. % of female classes receiving ESP 100.00 " (if 20% or less, test result will be 0.00) Male Female Balanced All Job Classes Classes Classes Classes # Job Classes 36 19 5 60 # Employees 62 33 24 119 Avg. Max Monthly $4,664.29 $5,049.57 $4,349.02 Pay per Employee II. STATISTICAL ANALYSIS TEST Male Female A. UNDERPAYMENT RATIO = 99.0 Classes Classes a. # at or above Predicted Pay 21 11 b. # Below Predicted Pay 15 8 C. TOTAL 36 19 d. % Below Predicted Pay 41.67 42.11 (b divided by c = d) * (Result is % of male classes below predicted pay divided by % of female classes below predicted pay) B. T -TEST RESULTS Degrees of Freedom (DF) = 93 Value of T = - 4.793 a. Avg. diff. in pay from predicted pay for male jobs = $ b. Avg. diff. in pay from predicted pay for female jobs = $ 931 III. SALARY RANGE TEST = 0.00 % (Result is A divided by B) A. Avg. # of years to max salary for male jobs = 0.00 B. Avg. # of years to max salary for female jobs = 0.00 IV. EXCEPTIONAL SERVICE PAY TEST 100.00 A. % of male classes receiving ESP 100.00 B. % of female classes receiving ESP 100.00 " (if 20% or less, test result will be 0.00)