5.8. SR 02-13-2006
City of Elk River
REQUEST FOR COUNCIL ACTION
Agenda Section Meeting Date
Worksession Februa 13,2006
Item Description
Pa Plan Structure Review Pro osal
Administrator
Introduction
The City Council directed the Personnel Committee to request proposals for consulting services to revise
the city's pay plan structure to accommodate the city's new organizational structure. The Personnel
Committee received proposals from the Stanton Group and Riley, Dettmann, and Kelsey. These two
firms were chosen because the city currently has a consulting relationship with the Stanton Group and
Riley, Dettmann, and Kelsey was selected because they are currently doing a similar study for Sherburne
County and they have worked with many Minnesota cities on compensation studies similar to the one the
city is undertaking.
Discussion
After reviewing the proposals, the Personnel Committee recommends that the City Council consider the
proposal from Riley, Dettmann, and Kelsey. This proposal more accurately reflects what the Personnel
Committee feels needs to be accomplished while the Stanton Group proposal only addresses the question
of whether a study needs to be done, which the Personnel Committee feels it has already addressed.
The recommended proposal includes reviewing the existing job descriptions and evaluating each using
Riley, Dettmann, and Kelsey's (RDK) evaluation methodology. The Personnel Committee believes that
this is an important part of the process because we have encountered numerous problems with the
current point evaluation system. The current system was initially developed at the inception of the pay
equity law over twenty years ago. It has been updated once since that time with minor adjustments made
in the interim. However, it has not been changed to reflect the changes in the structure of jobs,
particularly the computerization of the work environment, which affects the ratings on all information
technology positions as well as administrative and management positions. The Personnel Committee has
also encountered problems in evaluating environmental positions and some recreation positions. Again,
this is because the factors for weighing these positions have not changed and the system is very task
driven. The new evaluation system, as outlined on page seven of the proposal, includes weighing formal
preparation and experience, decision making, thinking challenges and problem solving, interactions and
communications, and work environment. Training for the Personnel Committee on how to evaluate
positions using the RDK Evaluation Methodology is included. Currently, the system used by the
Personnel Committee includes having employees fill out questionnaires, which are sent to the consulting
firm for review and returned as a position prof1le that is reviewed further by the employee and
department head, and sent back for review if changes are needed. This can be a time-consuming and
somewhat overwhelming process for the employee. This new evaluation method would simplify this
process.
S:\Council\Lori\2006\Pay Plan Structure Review Proposal.doc
The fInal step in the proposal is to review and modify the pay plan as needed to accommodate the new
positions created in the past several years, particularly the division head and fIrst line supervisory
positions.
Financial Impact
The cost for the proposal is between $10,575 and $11,515 depending upon the amount of consulting time
needed. This item was not budgeted for 2006. Funding would need to come from the Council
Contingency budget of $110,000.
Attachments
Consulting service proposals:
. Riley, Dettmann, and Kelsey
. Stanton Group
Action Requested
The City Council is asked to consider entering into a contract with Riley, Dettmann, and Kelsey for a
classifIcation study resulting in a revised pay plan structure in an amount not to exceed $11,515.
Council Action
Motion by _
Second by _
Vote
Follow Up
S:\Council\Lori\2006\Pay Plan Structure Review Proposal.doc
CONSULTING SERVICES PROPOSAL
TO
CONDUCT A CLASSIFICATION STUDY
OF
APPROXIMATELY 70 CITY CLASSIFICATIONS
Submitted February 2006
Riley, Dettmann & Kelsey LLC
11900 Wayzata Boulevard - Suite 104
Minnetonka, MN 55305
Phone: (952) 542-9400 Fax: (952) 542-2212
E-Mail: rdkmn@earthlink.net
Web Site: rdkcompsource.com
RILEY, DETTMANN & KELSEY LLC _
Page
SECTION 1
Background I Objectives I Scope .......................................................................... 1
SECTION 2
Methodology................................... ......................................................................... 2
SECTION 3
Qual ifications ..................................... ......... ............................................... ............. 4
SECTION 4
Project Staffing I Timing .......................................................... ............................... 5
SECTION 5
Profess ional Arrangements .... ............................................................................... 6
SECTION 6
Summary of the RDK Job Evaluation System Factors ........................................ 7
RILEY, DETTMANN & KELSEY LLC
Backqround of the Proposed Study
We understand that the City of Elk River intends to retain outside consulting expertise to plan, conduct,
document, present and facilitate the implementation of a new job evaluation methodology.
The existing job evaluation methodology was originally developed by Control Data Business Advisors
(CDBA), then purchased by Personnel Decisions International and then sold to another vendor. The City
Council, based on recommendation of the Personnel Committee, supports the adoption of a new job
evaluation methodology.
Finally, we understand that the City job descriptions covering classifications to be included in the study
are current and accurate. Therefore, the Personnel Committee has indicated there is no requirement for
the use of job description questionnaires.
The primary reasons for conducting a classification study at this time are:
~ An in-depth classification study has not been done for a considerable period of time.
~ A classification study will recognize the job content and essential accountabilities currently assigned
to each City classification.
~ The City wants to ensure that all classifications are appropriately classified for internal equity
purposes and also so that the City will continue to remain in compliance with the State of Minnesota
Local Government Pay Equity Act (LGPEA).
Obiectives of the Proposed Study
The City expects a proposal including work plan steps to:
1. Review existing job descriptions / classifications and evaluate each classification using our firm's job
evaluation methodology.
2. Train the Personnel Committee, convened and coordinated by the Human Resources
Representative, on how to evaluate positions using our firm's job evaluation methodology.
3. Provide ongoing support on an as-needed basis for the Personnel Committee and/or to provide an
independent job evaluation rating for new positions. (The latter means independent, post-study job
evaluations by the consultant).
Scope of the Proposed Study
The classification study will include the City's approximately 70 classifications.
RILEY, DETTMANN & KELSEY LLC
1
Understanding the City
Input from the City Administrator and Personnel Committee
>- The consultant will meet with the City Administrator and Personnel Committee to:
o Gain their perspectives and opinions on the proposed study and also to help ensure a uniform
understanding of the project process steps and expected outcomes.
o Establish the role of the Personnel Committee as an advisory panel that will review the
consultant's findings and conclusions following the job evaluation process. The consultant will
manage this activity to make the best use of each Committee member's time so that their
ongoing City responsibilities are not unduly interrupted.
Proposed Work Plan
Step One - Collection of Existina Documentation and Data for the Study
>- The consultant will meet with the Human Resources Representative to collect, discuss and thereafter
thoroughly study all available job descriptions, organization charts, and any other job content-related
materials deemed relevant to the study.
>- The consultant and Human Resources Representative may make contacts with department heads, if
required, to discuss questions on the job content of a particular position.
Step Two - Job Evaluation on All District City to be Included in the Study
>- The consultant will evaluate all positions included in the study using our job evaluation system. A
summary of the five factors in our methodology is included in Section 6 of this proposal.
>- Preliminary results of the job evaluation process will be presented to the Personnel Committee for
review and comment.
>- The consultant will thereafter further review the job evaluation results based on comments and/or
concerns from the Committee.
Step Three - Presentation of JE Results and Hierarchv to the Job Analvsis Committee
>- The consultant will present a classification hierarchy to the Committee that includes any revisions
prior to initiating the pay equity testing process.
Step Four - Testina for Pay Equitv Compliance and Consideration of PEQ Results
>- The consultant and Human Resources Representative will work together on pay equity testing that
combines the job evaluation results with current and applicable pay maximums for each position.
RILEY, DETTMANN & KELSEY LLC
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Step Five - Presentation of Pay Equitv Testinq Results to the Personnel Committee
~ The consultant and Human Resources Representative will present an internal classification hierarchy
that includes all positions included in the study and that continues the City's compliance with the
State's pay equity law.
Step Six - Preparation of Administrative Guidelines for the New Job Evaluation System
~ The consultant will prepare administrative guidelines to facilitate successful implementation and
ongoing application of the new job evaluation system.
Step Seven - Preparation and Presentation of a Final Report
~ The consultant will prepare a final report that contains all observations, findings, recommendations
and exhibits related to the study. The final report will be reviewed with the City Administrator,
Personnel Committee and any others as the Administrator may decide.
Step Eiqht - Follow-Up and Onqoinq Support to the Personnel Committee
~ The consultant and Human Resources Representative will provide a follow-up training session on the
new job evaluation methodology to help ensure the Personnel Committee fully understands and is
able to use the methodology in a consistent manner. (This Step is included as part of the fees quoted
in the Professional Arrangements section of the proposal)
Step Nine - Job Evaluations Performed bv the Consultant if Requested bv the City
~ The consultant could review and provide a job evaluation point profile for a particular position if and
when requested by the City. (This Step is listed separately in the Professional Arrangements section
of this proposal)
RILEY, DETTMANN & KELSEY LLC
3
Riley, Dettmann & Kelsey is a regional consulting practice specializing in classification/compensation
strategies and related services. Principals in the firm have many years of experience with private and
public sector organizations throughout the Upper Midwest.
A representative list of Minnesota cities we have assisted with some combination of pay equity,
classification or compensation issues includes the following:
Client Contact Telephone Number
City of Bemidji Mr. David Minke (218) 759-3565
City of Blaine Mr. Terry Dussault (763) 785-6154
City of Bloomington Mr. Kent Michaelson (952) 948-8710
City of Burnsville Ms. Jill Hansen (952) 895-4471
City of Eagan Ms. Lori Peterson (651) 675-5502
City of Fridley Ms. Deborah Dahl (763) 572-3507
City of Hastings Mr. David Osberg (651) 480-2383
City of Inver Grove Heights Ms. Jenelle Teppen (651) 450-2512
City of Lakeville Ms. Cindi Joosten (952) 985-4491
City of Maple Grove Ms. Ann Marie Shandley (763) 494-6016
City of Mound Ms. Kandis Hanson (952) 472-0609
City of New Brighton Ms. Jeanna Troha (651) 638-2046
City of Northfield Ms. Elizabeth Wheeler (507) 645-3012
City of Oakdale Mr. Craig Waldron (651) 730-2705
City of Princeton Mr. Steve Jackson (763) 633-2040
City of Rochester Ms. Linda Gilsrud (507) 281-7380
City of Savage Ms. Sandra King (952) 882-2649
City of S1. Cloud Ms. Dede Balcom Gaetz (320) 650-3140
City of S1. Louis Park Ms. Nancy Gohman (952) 924-2519
City of Shakopee Mr. Mark McNeill (952) 445-3650
City of Woodbury Ms. Jody Vogl-Eilertson (651) 714-3520
RILEY, DETTMANN & KELSEY LLC
4
Staffing
Roderick M. Kelsey, a Principal and Vice President of the firm, assumes responsibility for a broad scope
of consulting engagements in industry, education and government. Mr. Kelsey earned his Master's
degree in educational psychology at the University of Minnesota following undergraduate studies in
political science and sociology at Illinois Wesleyan University.
He has served in multiple leadership roles for the Twin Cities Human Resources Association (TCHRA)
and holds memberships in WorldatWork (formerly called the American Compensation Association [ACA])
and the Society for Human Resources Management (SHRM).
His extensive experience with public sector classification and compensation consulting includes many
pay equity-related assignments since inception of the State's Local Government Pay Equity Act (LGPEA)
in 1985.
Mr. Kelsey will assume direct accountability for all aspects of this assignment as outlined in this proposal.
Timing of the Study
Completion of the study, as outlined in this proposal, will require from four to six working weeks following
the study start date. Any unforeseen circumstances beyond control of either the consultant and/or City
will be immediately acknowledged to determine what, if any, such developments will likely have on the
timing and/or profe~sional fees quoted for the study.
RILEY, DETTMANN & KELSEY LLC
5
Based on the estimated scope of the study (70 classifications) and the work plan steps outlined in this
proposal, our consulting fees will be in a range from $10,575 to $11,515. This range allows for an extra
Ii day of consulting time due to unforeseen circumstances.
The consulting fee estimate above does not include Step Nine (independent job evaluations by the
consultant) that is listed separately below nor does the estimate include mileage related to the study.
Mileage related to the study will be invoiced in addition to the above not-to-exceed estimate at the 2006
IRS rate of $.445 / mile.
NOTE: Step Nine requests (independent post-study job evaluations by the consultant) would be invoiced
on a case by case basis as determined and agreed upon with the Human Resources Representative
based on a consulting fee rate of $235/hour. Typically, independent job evaluations require from 20 to 30
minutes ($78 - $117.50) if the documentation is clear and no phone calls are required. If phone calls to
verify job content information are required, or there is a particular issue that requires more in-depth
discussion and review, an evaluation could take from 45 to 60 minutes ($176.25 - $235). Experience
suggests it's usually the former case, not the latter case, since clients usually provide complete, accurate
and thorough job content information.
This proposal remains in effect for 120 days from date of issue. After that time, we respectfully reserve
the right to modify or withdraw the proposal.
Thank you for requesting this consulting services proposal from Riley, Dettmann and Kelsey.
RILEY, DETTMANN & KELSEY LLC
6
Summary of Job Evaluation Factors in the RDK Job Evaluation System
Formal Preparation and Experience
This job evaluation factor is applied to determine the most representative combination of formal
preparation (schooling at whatever level) and relevant Gob-linked) experience typically required to
qualify for the position being evaluated. It is important in this factor to verify the minimum
acceptable qualifications for the position being evaluated. [There are two decisions made on this
factor - one related to formal preparation and one made related to relevant experience.]
Decision Makina (Impact)
This job evaluation factor is applied to determine the regular and ongoing freedom to act; the
extent of the organization affected by those actions; and the best characterization of decision-
making typical of the position being evaluated. [There are three decisions made on this factor -
one related to the degree of freedom to act; one related to the extent of such judgments; and one
related to the nature of decision making.]
Thinkina Challenaes and Problem Solvina
This job evaluation factor is applied to determine the representative thinking challenges and
problem solving required on an ongoing basis and thereafter the depth of intellectual response to
those challenges and creativity involved in solving problems. [There are two decisions made on
this factor - one related to the context and complexity of challenges/problems and one related to
the depth of response required to address and resolve such challenges and problems.]
Interactions and Communications
This job evaluation factor is applied to determine the context of business-related interactions and
communications that are an ongoing part of performing the position being evaluated. [There are
two decisions made on this factor - one related to the type and context of business interactions
and one related to the impact of the outcomes and effects on information content and flow
throughout the organization.]
Work Environment
This job evaluation factor is applied to determine the potential for injury in performing the position
being evaluated and also determine what recognized health hazards regularly exist in the typical
work environment of the position being evaluated. [There are two decisions made on this factor -
one related to potential for injury and one covering the recognized health hazards in the work
environment.]
RILEY, DETTMANN & KELSEY LLC -
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3405 Annapolis Lane North
Minneapolis. MN 55447
Phone: 763-278-4000 or 800-754-9867
www.stanton-group.com
Proposal:
Diagnostic Analysis
presented to
January 18, 2006
II
STANTON I
GROUP
~.
Table of Contents
Summary of Requested Services and Deliverables..........................................................1
Background and Understanding......................................................................................1
Deliverables................................................................................................................... ..1
Our Process........................................................................................................................ .2
Our Promise to you................................................................................................... ......2
Diagnostic Analysis............................................................................................................3
Additional Project Scenario................................................................................................4
Proposed Timeline and Fees..............................................................................................6
As Partners We Agree......................................................................................................... 7
Resources........................................................................................................................ ....8
Your Project Team............................................................................................................. 1 0
About Stanton Group........................................................................................................ 12
History........................................................................................................................ .. .12
Size.......................................................................................................................... .... .12
Locations..................................................................................................................... ..12
Services ........................................................................................................................ 12
Compensation Services Group........ ......... .............................. ..................... ............... ...13
Proposal Acceptance........................................................................................................ 14
City of Elk River
January 18, 2006
.
STANTON I
GROUP
Compensation Services Proposal
Summary of Requested Services and Oeliverables
Background and Understanding
J
The City of Elk River is one of the fastest growing communities in the Twin Cities
metropolitan area. Located between several of the main traffic arteries entering the Cities
from the north, Elk River's population grew by more than 20% from 2000 to 2004. The city
currently employs approximately 96 employees.
The City of Elk River would like a third party to (1) run a diagnostic assessment of their
current salary structure and job evaluation system, in hopes of determining whether or not
adjustments need to be made in order to remain competitive with the market, and (2) suggest
a possible project scenario if it is determined that major adjustments will be needed.
Oeliverables
. Diagnostic Assessment
· Benchmarking of a representative sample of Elk River's positions against the
market
· Comparison of bench marked positions against Elk River's current classification
system
· Summary report with recommendations on potential next steps
. Possible project scenario if major adjustments will be needed
City of Elk River
January 18, 2006
.
STANTON I
GROUP
Compensation Services Proposal J
Our Process
At Stanton Group, we approach each engagement with an eye toward customizing
compensation solutions to the business needs of the client. Our basic process when working
with clients is depicted by the following graphic:
Business Mission, Vision and Strategies
.
Human Resource/Talent Management Strategies
.l
..
..
We use a phased approach to engagement management. And, we like to give clients the
opportunity to choose the steps that best fit their immediate need and budget.
Our Promise to You
Stanton Group is committed to protecting the private information of the City of Elk River and
their employees. Stanton Group maintains the confidentiality of all nonpublic client and
personal information we receive through our relationships with our clients.
City of Elk River
January 18, 2006
.
STANTON I
GROUP
IF
Compensation Services Proposal J
Diagnostic Analysis
Step 1: Benchmark representative jobs against the market.
Stanton Group will benchmark a representative sampling of Elk River's non-
executives' base salary and short-term incentive levels against the appropriate
market in order to (1) ensure market competitiveness, and (2) maximize cost
effectiveness.
· This step includes a check-in with the Project Team on all findings and one revision of
data, if applicable. Additional revisions can be requested and will be charged at the
standard hourly rate.
· This step is currently priced at 10 positions.
Step 2: Comparison of benchmarked positions against Elk River's current
classification system.
· Stanton Group will review the current evaluation system and how the points
generated compare to the market data.
Step 3: Comparison of market data and job evaluation points to the current structure.
· Review current salary structure and placement of jobs within the structure to check for
consistency, compression and inequities.
Step 4: Summary report
· All observations and recommendations will be presented to the City of Elk River in the
form of a written report.
City of Elk River
January 18, 2006
.
STANTON I
GROUP
Compensation Services Proposal J
Additional Project Scenario
Should the findings of the diagnostic analysis suggest that major adjustments are necessary,
Stanton Group would recommend the following steps:
Step 1: Benchmarking of All City of Elk River Positions
· Provide benchmark data for the remaining 60 Elk River positions not previously
benchmarked in the diagnostic analysis
Step 2: Job Evaluation Tool & On-Site Training Session
· Stanton Group will conduct a ~ day session on how to use the Stanton Group Job
Evaluation tool. The session will include:
o Description of the tool itself
o Practice evaluations - depending on the size of the group this may
be conducted in small groups
o Question and answer session
· All participants will receive a workbook containing all training materials
· (Optional) Stanton Group can conduct an evaluation of all jobs and assign applicable
points
· (Optional) On-Going Support throughout the Implementation Process
o Stanton Group will provide phone support to the City of Elk River
throughout the implementation process.
o NOTE: This service has been priced on a retainer basis for a two
month time period, eight hours/month. If the City of Elk River needs
support beyond two months, the price will need to be re-
negotiated.
Step 3: Creation of a salary structure.
· Using the new benchmark data, Stanton Group will create a new salary structure.
· This step includes a check-in with both Human Resources and/or top management to
review for reasonableness.
Step 4: Conduct a pay gap analysis and prepare a budget impact report.
· Stanton Group will review the actual pay levels within the context of the
recommended pay structure.
· One costing of the budget impact of the new structure will be provided. This entails
establishing the amount needed to bring those employees who are below the
minimum for the new ranges up to the range minimums. Stanton Group will also
identify how many employees are over the recommended maximums and make
recommendations regarding these individuals. Any additional costings can be
provided at the standard hourly rate.
· NOTE: Pricing and the time estimate for this step are based on 96 incumbents.
City of Elk River
January 18, 2006
.
STANTON I
GROUP
Compensation Services Proposal
Additional Project Scenario, cont.
J
Step 5: Review current performance appraisal system.
· Stanton Group will review the current performance appraisal system to ensure it
facilitates the goal of making base pay increases more objective and linked to
performance.
· NOTE: The time needed to complete this step depends on the number of different
appraisal forms there are and the length of each form.
Step 6: Creation of the performance rating salary increase matrix.
· There are two ways that Stanton Group could help with the creation of the
performance rating salary increase matrix:
o Stanton Group could provide consultation services to the City of
Elk River to review and make recommendation regarding the
salary increase matrix that Elk River designs
o Stanton Group will design the performance rating salary increase
matrix for the City of Elk River
· NOTE: Stanton Group's review will require access to Elk River's payroll records, merit
pool, as well as the newly created matrix in order to ensure that pieces are aligned
and that the merit guidelines are effective.
· (Optional) Implementation of system and supervisory training.
o Stanton Group would develop and administer the training program
necessary to ensure that Elk River supervisory personnel
understand and know how to use the new performance
management system.
o Stanton Group will develop the appropriate training materials as
well as lead the training sessions.
Step 7: Prepare a Summary of Findings Report for the Elk River Project Team
· Stanton Group will prepare a final report covering all findings and
recommendations established throughout the course of the project.
· (Optional) Stanton Group would also be available to present the report to the Elk
River Project Team. Typically, these meetings last between 2 to 3 hours.
City of Elk River
January 18, 2006
.
STANTON I
GROUP
Compensation Services Proposal J
Proposed Timeline and Fees
Estimated Estimated
Step Activity Timeline Fees Notes
DIAGNOSTIC ANALYSIS
1. Benchmark representative
jobs against the market
2. Compare bench marked
positions against current
classification system
2 weeks
$2,000
(1 )
2 weeks
$1,500 - $2,000
3. Compare market data and job
evaluation points against
current structure.
1 week
$1,000 - $1,500
TOTAL 6 weeks $5,500 - $7,000
4. Summary report
1 week
$1,000 - $1,500
1. Currently priced at 10 positions.
Notes and Contingencies:
Ensuring compliance with all state regulations regarding pay equity and comparable worth is
outside the scope of this proposal and, therefore, all project findings and related materials
provided to the City of Elk River by Stanton Group are only recommendations and
professional opinions.
Should the work transpire into significantly more hours, the fees would be adjusted.
However, Stanton Group's policy is to provide a thorough bid at the onset to avoid increasing
fees. Stanton Group will contact the client prior to assessing any additional charges.
The proposal above does not include expenses for travel incurred by the project. Travel time
will be invoiced at one-half standard hourly rates. All expenses are itemized for the client in
the invoice.
Stanton Group will invoice Elk River for hours worked at the end of each month.
Completion of this project, on time, is contingent upon the client meeting project deadlines
and/or requests for data.
This proposal is valid for 60 days from date received.
Stanton Group reserves the right to use the data in future consulting projects, articles and for
reference.
City of Elk River
January 18, 2006
.
STANTON I
GROUP
Compensation Services Proposal J
As Partners We Agree...
Stanton Group is committed to protecting the City of Elk River's private data. Stanton Group
uses reasonable efforts to maintain the confidentiality of all non public client and personal
information we receive through our relationships with our clients.
The City of Elk River agrees to pay Stanton Group all consulting fees associated as outlined
and accepted by Elk River upon receipt of invoice. Additionally, Elk River agrees to allow
Stanton Group reasonable access to its staff in the conduct of this project.
Once completed, the City of Elk River will own the original written material prepared for Elk
River under this proposal by Stanton Group.
Either party may terminate the project on thirty (30) days written notice. Should this event
occur, Stanton Group will deliver a timely, final invoice for hours worked to the date of
termination for payment by Elk River.
City of Elk River
January 18, 2006
.
STANTON I
GROUP
Resources
Compensation Services Proposal J
Watson Wyatt
· 2005/2006 Board of Directors
. 2005/2006 Top Management
. 2005/2006 Technician & Skilled Workers
. 2005/2006 Non-Qualified Benefits &
Perquisites Practices
. 2005/2006 Sales & Marketing Personnel
. 2005/2006 Employee Benefits
Sta~ton Group
. 2003 Church Compensation
. 2005 Customer Service Compensation
. 2003 Finance & Mortgage Industry
. 2005 Healthcare Management &
Supervisory Compensation
. 2005 Healthcare Professional & Nonexempt .
Compensation
· 2005 Industrial Flight Compensation
. 2005 Information Technology
Compensation
. 2005 Twin Cities Metropolitan Area
Compensation & Benefits (Public-Sector)
Mercer
. 2005/2006 Professional Personnel
. 2005/2006 Office Personnel
. 2005/2006 Supervisory Management
. 2005/2006 Retail Industry
. 2005/2006 Middle Management
. 2005 Pharmacy Compensation
Survey
. 2005 PSI Exempt Compensation
. 2005 PSI Non-Exempt Compensation
. 2005 Upper Midwest Compensation
2005 Upper Midwest Benefits
. 2005 Wholesale/Retail Compensation
. 2005 Wholesale/Retail Benefits
· 2004 National Survey of Employer-Sponsored Health Plans
· 2005 Geographic Salary Differentials
SHRM
. 2005 Benefits Survey
. 2004 Healthcare Survey
. 2005 Reward & Incentive Program Design Survey
Conference Board
. 2004 Top Executive Compensation Survey
· 2004 Directors' Compensation & Board Practices
City of Elk River
January 18, 2006
.
STANTON I
GROUP
Compensation Services Proposal J
Resources, cont.
Others
. 2005/2006 WorldatWork Salary Budget Survey
. 2004 Hay Benefits Report
. 2005 QualComp Compensation Survey
. 2004 NASPP Stock Plan Design & Administration Survey
. 2005 ERI Salary Assessor
. 2004 Clark Consulting Executive Benefits Survey
. 2003/2004 Global Relocation Trends
. 2005 Corporate Relocation Survey
. 2005 NACD Director Compensation Report
. 2004 Pearl Meyer Director Compensation Report
City of Elk River
January 18, 2006
.
STANTON I
GROUP
.~
Compensation Services Proposal J
Your Project Team
MARK O. SULLIVAN, Practice Leader, Compensation Services
Mark is the Compensation Services Practice leader for Stanton Group. His consulting
experience includes a wide range of compensation projects for various industries. He is an
experienced professional with over 20 years in compensation work at organizations ranging
from mid-size to Fortune 100 companies as well as being the founder of two Twin Cities-
based consulting firms. Although compensation work is a primary focus, his roles have also
called for his involvement in succession planning, merger and acquisition activity, turnaround
management, performance management and organizational design.
His compensation work has included designing, developing, implementing and managing a
variety of executive compensation tools (short- and long-term incentives, stock options,
restricted stock, deferred compensation, etc.), job evaluation, compensation administration
and development of corporate-wide compensation communications.
Mark has a Bachelor's degree from Iowa State University in industrial administration with a
concentration in industrial engineering. He also received a master's degree in industrial
relations from the University of Minnesota. He is a member of the Society for Human
Resource Management, WorldatWork (formerly the American Compensation Association),
the Minnesota Human Resources Planning Society and the Turnaround Management
Association.
Mark can be reached at 763-278-4264 or bye-mail atmsullivan@stanton-group.com.
CHRISTINE SOLIS-MENDOZA, Compensation Consultant, PHR
Christine Solis-Mendoza is a Compensation Consultant with Stanton Group. She has over 5
years of human resources experience in various industries. While compensation work is her
primary focus, she also has experience in training and development, employee relations,
FlSA determination and documentation, job description development and recruiting.
Her compensation work has included job analysis and evaluation, market analysis, designing
and costing of base and incentive compensation programs for all levels of jobs including
executive and Board of Directors' compensation.
Since joining Stanton Group she has also been actively involved in the development, design,
and administration of a number of regional and national compensation and benefits surveys.
Christine holds a Bachelors of Business Administration degree from the University of Texas
at San Antonio and a Masters of Arts Degree in Human Resources and Industrial Relations
at the University of Minnesota. She is also an active member of the Society of Human
Resource Management Association (SHRM) and the Twin Cities Compensation Network and
certified as an ISO Auditor.
City of Elk River
January 18, 2006
.
STANTON I
GROUP
Compensation Services Proposal J
Your Project Team, cont.
AMY J. STARK, Compensation Analyst
Amy Stark is a Compensation Analyst with Stanton Group. She holds a Bachelors degree in
Psychology from the University of Northern Iowa and a Masters of Arts degree in Human
Resources and Industrial Relations from the University of Minnesota.
Upon joining Stanton Group, Amy has been actively involved in the administration and
production of a number of regional and national compensation and benefits surveys. She
also has experience in recruiting, training, and job description development. Her
compensation consulting work has included job analysis, market analysis, and costing of
base and incentive compensation programs for all levels of jobs.
Prior to working at Stanton Group, Amy worked as a Staffing Supervisor and Customer
Service Representative for Kohl's Department Stores for over three years.
ANGIE PERSCHNICK, Senior Compensation Analyst
Angie Perschnick is a Senior Compensation Analyst with Stanton Group. She has over 4
years of human resources experience in various industries. While compensation work is her
primary focus, she also has experience in FLSA determination and documentation, job
description development, benefits administration, and merger and acquisition processes
related to compensation and staffing.
Her compensation work has included job analysis and evaluation, market analysis, review
and design of base and incentive compensation programs for all levels of jobs, sales
compensation, and international compensation.
Angie holds both a Bachelors of Management and Psychology degree and a Masters of Arts
Degree in Human Resources and Industrial Relations from the University of Minnesota. She
is also an active member of the Twin Cities Compensation Network and WorldatWork
(formerly American Compensation Association).
Prior to joining Stanton Group, she held human resource positions with ADC
Telecommunications, Land O'Lakes, Marquette Financial Companies, Syngenta Seeds, St.
Paul Travelers, and Cenex Harvest States.
City of Elk River
January 18, 2006
.
STANTON I
GROUP
Compensation Services Proposal J
About Stanton Group
History
Since its inception in 1953, Stanton Group has evolved from a single service provider,
offering deferred compensation administrative services, to a total solution provider with highly
diversified product and service offerings. Stanton Group has grown over the years
by acquiring organizations that specialize in various aspects of employee benefits and
compensation.
Our full-service, open architecture platform incorporates consulting and administrative
services to meet employers' broad range of benefit and compensation needs.
Our enthusiastic and creative team of experienced professionals currently serves over 1,400
clients and 300,000 employees nationwide.
Size
Approximately 185 employees
Locations
We currently have offices in Minneapolis, Minnesota and Dallas, Texas.
Services
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Health & Welfare Consulting
. Group Insurance Plans
. Employee Communications
. Health Cost Management
. Pharmacy Benefit Consulting
. Claims Analysis Tools
. Flexible Spending Accounts
. COBRA Administration
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Retirement Services
. Plan Design Consulting
. Administration and Compliance Services for
- Defined Contribution Plans
- Defined Benefit Plans
- Nonqualified Plans
. Investment Consulting through Stanton Investment Services, Inc.
Member NASD/SIPC
. Trustee Services through Stanton Trust Company, N.A
. Employee Education and Communication
City of Elk River
January 18, 2006
.
STANTON I
GROUP
Compensation Services Proposal J
About Stanton Group, cont.
Services, cont.
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Compensation Services
. Annually Published Surveys
. Custom Surveys
. Compensation Consulting
. Executive Compensation
. Employee Communication
Executive Benefits
. Corporate Owned Executive Life Insurance Programs
. Business Continuation and Business Succession Planning
. Executive Disability Income Protection Programs
. Nonqualified Deferred Compensation Plans
. ESOPs: Employee Stock Ownership Plans
Property and Casualty Insurance
. Risk Management
. Marketing
. Account Management
. Loss Runs
. Experience Modification Reviews
Compensation Service Group
Our consultants and analysts average 20 years of compensation experience in both
corporate and consulting positions. Our experience and know-how, backed by Stanton
Group's proprietary research, allows us to efficiently find creative solutions that link pay
strategies to business objectives. We also conduct over 20 annual compensation and benefit
surveys that provide detailed, up-to-date, industry specific information for national, regional
and local clients in the private and public sectors.
City of Elk River
January 18, 2006
.
STANTON I
GROUP
Compensation Services Proposal J
Proposal Acceptance
Next Step
We appreciate the opportunity to propose on this important project. If you would like to
discuss any aspect of this proposal or the project, please call Mark Sullivan at 763-278-4264.
If you accept our project and the costs as outlined, please sign and return a copy of this
proposal to Mark as soon as possible; or if you choose, you may send it via facsimile to 763-
278-4265.
Proposal Acceptance Indication
Please indicate the accepted project(s):
o Diagnostic Analysis: 6 weeks; $5,500. $7,000
The client's signature indicating acceptance of this proposal, including fees and timeline.
Name:
City of Elk River Representative
Title:
Date:
City of Elk River
January 18, 2006
.
STANTON I
GROUP