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CITY COUNCIL <br />AGENDA ITEM 1F <br /> <br /> <br />STAFF ORIG INATOR: Jeff Karlson <br /> <br />MEETING DATE: January 28, 2013 <br /> <br />TOPIC: 2013 Pay Equity Report <br /> <br />VOTE REQUIRED: 3/5 <br /> <br /> <br />INTRODUCTION <br /> <br />The Council is being asked to approve the 2013 Pay Equity Report for submission to <br />Minnesota Management & Budget (MMB). <br /> <br />BACKGROUND <br /> <br />The Local Government Pay Equity Act and Minnesota Rules require local jurisdictions to <br />submit a pay equity report to the State of Minnesota every three years. The City filed a report <br />in 2010 and was in compliance. The 2013 report is due January 31, 2013. <br /> <br />Staff completed the report, which was then run through MMB’s Pay Equity Analysis System <br />Software. Based on the numbers in the compliance report, the City did not pass the statistical <br />analysis test or the T -Test, which is a mathematical technique for measuring statistical <br />significance. The City’s “underpayment ratio” is 69.47 percent. The minimum requirement to <br />pass is 80 percent. This result is likely because the pol ice officers received a three percent wage <br />increase in 2010 and 1½ percent increase in 2013, when the other unions did not receive the <br />same salary bumps. <br /> <br />I contacted MMB to obtain a full explanation, but have not heard back from the person who can <br />answe r my questions. I am certain we will be notified of the City’s non -compliance and given <br />a deadline for correct ing the matter . My question for MMB is how the City can correct this <br />situation when there are union contracts that are not settled for 2012 and 2013. <br /> <br />RECOMMENDATION <br /> <br />Approve the 2013 Pay Equity Report. <br /> <br />ATTACHMENTS <br /> <br />Pay Equity Implementation Report <br />Guide to Understanding Pay Equity Compliance and Computer Report