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43 <br /> <br />The Annual Compensation Adjustment (ACA) is the Council-approved annual <br />adjustment often referred to as a Cost of Living Adjustment (COLA). <br /> <br />Implementation <br /> <br />When deemed appropriate by the City Council, the wages for each regular full-time and <br />part-time employee not represented by a collective bargaining may be adjusted, effective <br />January 1 of each year. The percentage increase approved by the Council represents the <br />second phase in the overall compensation policy. <br /> <br />Adjustment Criteria <br /> <br />The ACA shall be granted only when earned based on demonstrated on-the-job <br />performance, supported by the recommendation of the immediate Supervisor and <br />preceded by a year-end performance evaluation rated satisfactory or above. All <br />recommendations will be reviewed by the City Administrator who will recommend approval <br />or denial of the ACA to the City Council for final approval. If a performance evaluation is <br />rated less than satisfactory or it is determined that the employee has areas of job <br />performance which need improvement, the employee may receive less than the full ACA <br />percentage increase. <br /> <br /> <br />PHASE III. PAY EQUITY COMPLIANCE <br /> <br />The State of Minnesota's Pay Equity Law requires that "every political subdivision of this <br />state shall establish equitable compensation relationships between female-dominated, <br />male-dominated, and balanced classes of employees in order to eliminate sex-based wage <br />disparities in public employment in this state." (Minn. Stat. § 471.992, subd. 1) <br /> <br />The term “equitable compensation relationship” means that the compensation for female- <br />dominated classes is not consistently below the compensation for male-dominated classes <br />of comparable work value . . . (Minn. Stat. §. 471.991, subd. 5). <br /> <br />A. In order to comply with the Pay Equity Law, the City Administrator shall annually <br />conduct an analysis of compensation using the job evaluation study method <br />determined by the City Council. <br /> <br />B A Pay Equity Adjustment may be necessary if the annual analysis indicates a <br />pattern of compensation for female and male-dominated classes which is <br />inconsistent with the requirements of State Law and the Pay Equity Regulations <br />as set forth by the Department of Employee Relations. <br /> <br />C. The Pay Equity Analysis and any subsequent compensation adjustment <br />represents the final Step in the overall compensation process. <br /> <br />The City may consider conducting a market compensation study of all City job <br />classifications in conjunction with the state-mandated Pay Equity Compliance Report. If <br />the City Council so chooses to implement a job market compensation study in conjunction