City Council Meeting - FINAL

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Meeting Date: 09/06/2022  
Co-Submitter: Jessica Vigorito From: Jeanie Gallagher, Human Resources Director

Consideration and Adoption of Resolution No. 2022-43 and Ordinance No. 2022-23: A resolution declaring as a public record that a certain document to be filed with the City Clerk and entitled “Addendum 31 to the Employee Handbook of Regulations” and an ordinance amending the Flagstaff City Code Chapter 1-14, Personnel System, and the Employee Handbook of Regulations by adopting by reference that certain document entitled “Addendum 31 to the Employee Handbook of Regulations” to align with classification, compensation and performance management changes.
At the  September 6, 2022 Council Meeting:
1) Read Resolution No. 2022-43 by title only
2) City Clerk reads Resolution No. 2022-43 by title only (if approved above)
3) Read Ordinance No. 2022-23 by title only for the first time
4) City Clerk reads Ordinance No. 2022-23 by title only (if approved above)
At the September 20, 2022 Council Meeting:
5) Adopt Resolution No. 2022-43  
6) Read Ordinance No. 2022-23 by title only for the final time
7) City Clerk reads Ordinance No. 2022-23 by title only (if approved above)
8) Adopt Ordinance No. 2022-23
Executive Summary:
This ordinance provides a comprehensive update to the identified sections of the Employee Handbook of Regulations with respect to Classification, Compensation and Performance Management.
In FY 2020 the City of Flagstaff contracted with Evergreen Solutions, LLC to conduct a comprehensive analysis of the City’s compensation program.  This analysis was completed in the spring of 2021 and changes to the City’s compensation structures were included in the budget process and implemented in FY 2022.  These included replacing the pay plan structure, adjusting the pay ranges to market-based ranges, establishing a budgeted merit fund, and implementing compression adjustments.  During this same time period the City transitioned to the Neo Gov PERFORM platform for performance management and modified the performance evaluation criteria. 
With the compensation program foundation in place, the approved budget for FY 2023 includes budgeted merit, additional compression adjustments, and a market-adjustment budget to ensure the City regularly assess the market and adjust positions within the pay structure as identified. 
Significant collaboration has ensued since the July 2021 implementation of the new compensation structure including human resources, city managers, leadership, extended leadership, as well as the employee advisory committee to update these policies to align with the adopted compensation structure as well as ensure the City is positioned long-term for recruitment and retention of outstanding staff. 
Financial Impact:
Funding for these policy changes is included in the FY 2023 budget.
Policy Impact:
The revised policies align with the City of Flagstaff redesigned Classification, Compensation and Performance Management programs.
Connection to PBB Priorities/Objectives, Carbon Neutrality Plan & Regional Plan:
Priority Based Budget Key Community Priorities and Objectives
High Performing Governance:  Implement innovative local government programs, new ideas & best practices; be recognized as a model for others to follow.  Be an employer of choice through inclusive recruitment & by providing employees with the necessary tools, training, support & compensation.
Has There Been Previous Council Decision on This:
Yes.  Various modifications to many of these policies have occurred over the years.
Res. 2022-43
Addendum 31
Ord. 2022-23


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