1. Copyright © 2014 by The Segal Group, Inc. All rights reserved. City of Sierra Vista, AZ. City Council Presentation August 12, 2014 2014 COMPENSATION AND CLASSIFICATION STUDY Presented by: Linda G. Wishard, Senior Consultant

2. 2 Job Analysis Job Evaluation Custom Market Survey Salary Structure System Administration Goals & Objectives COMMUNICATION Project Overview

3. 3  Job Analysis and Classification Review (FLSA Report)  Job Evaluation  Custom Compensation Survey  Market Comparisons  Development of New Classification/Compensation Plan Key Deliverables of the Study

4. 4 A thorough review of all classifications completed  Job Description Questionnaires (JDQs) collected to provide accurate and up-to-date job documentation.  Job Evaluation to clarify job relationships and groupings (Internal Equity). Job Evaluation Manual (JEM) completed by supervisors for all positions.  Updated classification system and job titles that reflect current duties, job requirements, and scope of responsibilities.  FLSA Review completed and report provided. Job Classifications

5. 5 Job Evaluation Job Evaluation System to establish internal equity completed  Evaluation of positions using factors that are typically paid-for, measurable qualities, and features or requirements common to all jobs.  Performance at an acceptable level is assumed.  Considered what the job requires most of the time under normal circumstances.  Factors consistently applied across departments.  Ratings based on JDQ, Job Evaluation Manual, and Subject Matter Experts.  Results in an internal hierarchy of jobs defining relative value.

6. 6 Compensable Factors Formal Education This factor measures the minimum formalized training or education that is required for entry into the position. Experience Based on the minimum education required for the job, this factor measures the degree of experience required for entry into the position. Interpersonal Skills This factor measures the job requirements of interaction with others outside direct reporting relationships. Management/Supervision This factor measures the managerial requirements for achieving results through people. Technical Skills This factor measures the job difficulty in terms of the application of the knowledge required by the job. Working Conditions This factor measures the surroundings or physical conditions under which the work must be performed. Freedom to Act This factor measures the degree of freedom to exercise authority as well as assesses the impact of actions. Fiscal Responsibility This factor measures the accountability for the annual budget and financial management for a department or assigned area of responsibility.

7. 7 Benchmark Organizations In addition to published private sector data (ERI), a total of thirty (30) organizations were requested to participate in the customized survey. Those organizations providing a complete or partial response to the survey included the following noted in “red”: CITY OF SIERRA VISTA - BENCHMARK ORGANIZATIONS Cities/TownsCounties 1City of Apache Junction20Cochise County 2City of Avondale21Maricopa County 3City of Chandler22Pima County 4City of Douglas23Pinal County 5City of FlagstaffOther Organizations 6City of Glendale24Arizona Department of Public Safety 7City of Goodyear25Arizona Department of Transportation 8City of Maricopa26Chochise College (Admin Positions) 9City of Mesa27Fort Huachuca Moral, Welfare and Recreation 10Ciy of Peoria28Fry Fire District (Fire only) 11City of Prescott29Northwest Fire District (Fire only) 12City of Scottsdale30Sierra Vista Regional Medical Center (Admin Positons) 13City of SurprisePrivate Sector Data 14City of Tempe Private Sector data from Economic Research Institute Salary Assessor 15City of Tucson 16Town of Gilbert 17Town of Marana 18Town of Oro Valley 19Town Sahuarita

8. 8 Base Pay & Structure Analysis Completed  Use of Geographic Differential to adjust for regional differences in cost of labor.  Aged data (3.5%) to October 1, 2014.  Use of weighted average salaries for data point of comparison for general jobs.

9. 9 ERI Indicator City of Sierra Vista93.6 City of Sierra Vista93.6 Benchmark Organization ERI Indicator Geo Diff %Benchmark Organization ERI Indicator Geo Diff % Arizona Department of Public Safety97.2-3.60%City of Tempe97.7-4.10% Arizona Department of Transportation97.2-3.60%City of Tucson93.20.40% City of Apache Junction96.1-2.50%Cochise College (Admin Positions)93.60.00% City of Avondale97.9-4.30%Cochise County93.20.40% City of Chandler97.8-4.20%Fort Huachuca Moral, Welfare and Recreation93.60.00% City of Douglas93.20.40%Fry Fire District (Fire only)93.60.00% City of Flagstaff92.21.40%Maricopa County97.2-3.60% City of Glendale97.8-4.20%Northwest Fire District (Fire only)93.20.40% City of Goodyear97.3-3.70%Pima County93.20.40% City of Maricopa96.7-3.10%Pinal County96.2-2.60% City of Mesa97.4-3.80% Sierra Vista Regional Medical Center (Admin Positons)93.60.00% City of Peoria97.7-4.10%Town of Gilbert97.3-3.70% City of Prescott91.62.00%Town of Marana92.70.90% City of Scottsdale97.4-3.80%Town of Oro Valley92.70.90% City of Surprise97.2-3.60%Town of Sahuarita92.70.90% Geographic Differentials for Benchmark Organizations (Source: ERI)

10. 10 Market Competitiveness* Base SalaryGrade Midpoint General Positions: Nonexempt- 8.7%*-2.1%* Exempt - 4.3%*-2.9%* Senior Management -13.6%* -15.5%* *Competitiveness varies by position

11. 11 Market Competitiveness* Base GradeGrade SalaryMinimumMaximum Public Safety Positions: Fire- 18.8%*-16.5%*-10.8%* Police -19.3%* -18.7%-10.2%* *Competitiveness varies by position

12. 12 Salary Structure Design  Use geographically adjusted, weighted average salaries as midpoint target for structures.  Use job evaluation for placement of positions in structures.  Using market data, develop structures competitive with market at 100% of benchmark average salaries.  Update range spreads (from entry to maximum rate of pay) to reflect market trends (Non-Exempt – 45%; Exempt – 50%; Senior Management – 50%).

13. 13 PROPOSED NON-EXEMPT PAY STRUCTURE NON-EXEMPT STRUCTURE Grade Pay Range MinimumMidpointMaximum 200$26,638$32,631$38,625 201$27,970$34,263$40,556 202$29,368$35,976$42,584 203$30,837$37,775$44,713 204$32,379$39,664$46,949 205$33,997$41,647$49,296 206$35,697$43,729$51,761 207$37,482$45,916$54,349 208$39,356$48,212$57,067 209$41,324$50,622$59,920 210$43,390$53,153$62,916 211$45,560$55,811$66,062 212$47,838$58,601$69,365

14. 14 PROPOSED EXEMPT PAY STRUCTURE EXEMPT STRUCTURE Grade Pay Range MinimumMidpointMaximum 104$39,248$49,060$58,872 105$41,995$52,494$62,993 106$44,935$56,168$67,402 107$48,080$60,100$72,120 108$51,446$64,307$77,169 109$55,047$68,809$82,570 110$59,451$74,313$89,176 111$64,207$80,258$96,310 112$69,343$86,679$104,015 113$75,584$94,480$113,376 114$82,387$102,983$123,580

15. 15 PROPOSED SENIOR MANAGEMENT PAY STRUCTURE SENIOR MANAGEMENT Grade Pay Range MinimumMidpointMaximum I$97,234$121,543$145,851 II$111,819$139,774$167,729

16. 16 PROPOSED PUBLIC SAFETY (Exempt) PAY STRUCTURE FIRE EXEMPT Grade Pay Range MinimumMidpointMaximum F5$77,511$92,350$107,188 F6$90,932$110,103$129,273 POLICE EXEMPT Grade Pay Range MinimumMidpointMaximum P4$79,639$92,838$106,038 P5$88,487$106,940$125,393 P6$103,664$124,035$144,406

17. 17 PROPOSED PUBLIC SAFETY (Non-Exempt) STEP PAY STRUCTURE FIRE NONEXEMPT STRUCTUREPOLICE NONEXEMPT STEP STRUCTURE GradeF1F2F3F4GradeP1P2P3 RankFirefighter Fire Inspector Fire EngineerCaptainRankOfficerCorporalSergeant 2% Steps 1$40,192$46,308$51,246$59,2101$47,075$51,782$66,489 2$40,996$47,235$52,271$60,3942$48,016$52,818$67,819 3$41,816$48,179$53,316$61,6023$48,977$53,874$69,175 4$42,652$49,143$54,383$62,8344$49,956$54,952$70,558 5$43,506$50,126$55,470$64,0915$50,955$56,051$71,970 6$44,376$51,128$56,580$65,3726$51,974$57,172$73,409 7$45,263$52,151$57,711$66,6807$53,014$58,315$74,877 8$46,168$53,194$58,866$68,0138$54,074$59,482$76,375 9$47,092$54,258$60,043$69,3749$55,156$60,671$77,902 10$48,034$55,343$61,244$70,76110$56,259$61,885$79,460 11$48,994$56,450$62,469$72,17611$57,384$63,122$81,049 12$49,974$57,579$63,718$73,62012$58,532$64,385$82,670 13$50,974$58,730$64,992$75,09213$59,702$65,672$84,324 14$51,993$59,905$66,292$76,59414$60,896$66,986$86,010 15$53,033$61,103$67,618$78,12615$62,114$68,326 16$54,094$62,325$68,970$79,68916$63,356$69,692 17$55,176$63,571 17$64,624$71,086 18$56,279$64,843 18$65,916$72,508 19$57,405$66,140 20$58,553 21$59,724

18. 18 Segal Waters - Recommendations  Adopt proposed Classifications, based on job analysis and job evaluation results (internal equity – hierarchy of jobs).  Adopt the proposed pay structures (Exempt, Non-Exempt, Senior Management) at 100% market average based on 50/50 weighting of Custom Survey and Published data.  Adopt the proposed step pay structure for Non-Exempt Public Safety.  Adopt proposed pay administrative guidelines.

19. 19 Segal Waters’ Recommendations (Continued)  Adopt adjustment to incumbent pay to minimum of proposed ranges: o Estimated cost: $118,634.41 o Affects 40 employees  Adopt adjustment to closest step for Non-Exempt Public Safety: o Estimated cost: $85,694.56 o Affects 104 employees  Adopt adjustment of 2.0% of the new range minimum for each full year of service (TIP - time in position): o Estimated cost: $308,174.79 o Affects 115 employees  Total Estimated Cost: $512,453.76* *Does not include associated benefits costs.

20. 20 Segal Waters’ Recommendations (Continued)  Two-Year Implementation Plan – Optional  Year 1 - Adopt adjustments to move employees to the Minimum of Range or Closest Step o Estimated cost: $204,328.97 o Affects 144 employees  Year 2 - Adopt adjustment of 2.0% of the new range minimum for each full year of service (TIP - time in position): o Estimated cost: $308,174.79 o Affects 115 employees *does not included associated benefits costs

21. 21 QUESTIONS?