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• <br />Service Requested <br />The city would like the consultant to review the city's compensation philosophy. <br />E. Internal Equity <br />Since legislation was passed in 1984, the City has worked to maintain compliance <br />with the guidelines set forth in the Local Government Pay Equity Act (LGPEA). The City <br />has never been out of compliance. The city received a notice from the Department of <br />Employee Relations in April, 2007 that they were in compliance the Pay Equity Act. <br />However over the years, arbitration awards, and other factors can result in salary <br />compression and a loss of internal equity. <br />Service Requested <br />The city would like the consultant to review its compensation system for internal <br />equity, reasonable pay relationships, and salary compression. <br />F. Pay for Performance/Merit Pay <br />The employees in this organization are on a step plan for compensation. <br />Service Requested <br />The city would like the consultant to prepare a Pay for Performance or Merit Pay <br />Program. This program must maintain the city's pay equity and internal equity status. <br />1:\RFPs\Lino Lakes Audit 2.DOC DB 3/1/02 Page 8 of 12 <br />